Document:

CME-2012.6.30 10Q Ex 10.6

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

LICENSE AGREEMENT

This License Agreement dated June 29, 2012 is made by and between Standard & Poor’s Financial Services LLC (“S&P FS LLC”), a Delaware limited liability company having an office at 55 Water Street, New York, New York 10041, and the Chicago Mercantile Exchange Inc. (“CME”), a Delaware corporation having an office at 20 South Wacker Drive, Chicago, Illinois 60606.

RECITALS:

WHEREAS, S&P compiles, calculates, maintains and owns rights in and to the S&P Stock Indices and to the proprietary data contained therein; and

WHEREAS, S&P uses in commerce and has trade name and trademark rights to the designations listed in Appendix 1 to this Agreement; and

WHEREAS, CME wishes to use the S&P Stock Indices and S&P Marks in connection with: (i) creating, issuing, listing, trading, clearing, marketing, and promoting Futures Contracts, Options on Futures Contracts, Swap Contracts, Options on Swap Contracts and Standardized Option Contracts and activities related thereto; and (ii) making disclosure about such Contracts under applicable laws, rules and regulations in order to identify that S&P is the source of the S&P Stock Indices, pursuant to the terms and conditions hereinafter set forth; and

WHEREAS, the current license relationship between CME and S&P is set forth in a license agreement dated September 20, 2005, as amended (the “2005 Agreement”); and 

WHEREAS, the parties wish to (i) modify and extend their license relationship on the terms and conditions set forth herein, and (ii) supersede and replace all prior agreements with regard to the subject matter of this Agreement; and

WHEREAS, pursuant to the terms of a Contribution Agreement, dated as of November 4, 2011, by and among MHP and CME and its Affiliate (the “Contribution Agreement”), MHP and such Affiliate have each agreed to contribute various assets comprising their respective index businesses to a Delaware limited liability company to be formed upon the closing of the Transaction (as defined below) (“Licensor”); and

WHEREAS, the Contribution Agreement provides that the Operating Agreement and this Agreement will be entered into at the closing of the transactions contemplated thereby (the transactions contemplated by the Contribution Agreement being collectively referred to herein as the “Transaction”), where this Agreement, being part of the Transaction, shall form a single, integrated agreement among the parties;

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Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, it is agreed as follows:

1.     DEFINITIONS.    For purposes of this Agreement, the following definitions shall apply:

(a) “Affiliate” shall mean, with respect to any person or entity, any other person or entity that directly or indirectly controls, is controlled by or is under common control with such first person or entity; provided that the term “Affiliate” does not include: (i) any Company Entity when used with respect to any CME Entity or any MHP Entity (each as defined in the Operating Agreement) and (ii) any CME Entity or MHP Entity when used with respect to any Company Entity.  For purposes of this Agreement, control means, with respect to any entity, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through the ownership of voting securities, by contract or otherwise.

(b) “Agreement” shall mean this License Agreement.

(c) “Annual Net Revenue Floor” shall have the meaning ascribed in Appendix 3, Section 2.

(d) “Bilateral Swap Contracts” shall mean Swap Contracts that are bilaterally traded and not listed on a Competitive Market nor cleared through a centralized clearinghouse. 

(e) “CBOE” shall mean the Chicago Board Options Exchange, Incorporated and any successor in interest thereof.

(f) “CBOE/S&P License Agreement” shall mean the license agreement dated as of November 1, 1994, as amended, between S&P and CBOE pursuant to which, among other things, S&P has granted to CBOE the right to use the S&P 500 Index and certain other S&P Stock Indices as the underlying interest in listed, standardized option contracts that trade on CBOE’s exchange.

(g) “Centrally Cleared Swap Contract” shall mean a “Swap Contract” that is listed on a Competitive Market or cleared through a centralized clearinghouse and does not meet the requirement of a Futures Equivalent Swap Contract. 

(h) “CFTC” shall mean the Commodity Futures Trading Commission, as from time to time constituted or, if at any time after the execution of this Agreement such Commission is not existing and performing the duties assigned to it under the Commodity Exchange Act, as amended, then the body performing such duties at such time.

(i)“Cleared OTC Option Contracts” shall mean options contracts that (i) use an S&P Stock Index as their underlying interest, (ii) are securities under the Securities Exchange Act of 1934 as amended, (iii) are traded over-the-counter and (iv) are reported to and cleared by The Options Clearing Corporation (“OCC”) or any other clearing agency. 

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Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

(j) “CME” shall have the meaning ascribed in the Preamble of this Agreement.

(k) “CME Disclaimers” shall have the meaning ascribed in Section 10(c) of this Agreement.

(l) “CME Substitute Contracts” shall have the meaning ascribed in Section 8(a) of this Agreement.

(m) “CME Substitute Index” shall have the meaning ascribed in Section 8(a) of this Agreement.

(n) “Commencement Date” shall have the meaning ascribed in Section 6(a) of this Agreement.

(o) “Competitive Market” shall mean (i) an organized, regulated derivatives market  that is subject to regulation as a designated contract market regulated by the CFTC (assuming for this purpose that such a Competitive Market were operating in the United States regardless of where it is actually operating) or under a comparable international regulatory structure that employs a central counter-party model and offers for trading products that would be Futures Contracts under this Agreement (for example, without limitation, CBOE Futures Exchange, Eurex, InterContinentalExchange and NYSE-Euronext), (ii) an entity that offers electronic trading in futures  look-alike products  (i.e., highly standardized products for future settlement or delivery) through a central order book and that has obtained a recognized status or formal exemptive or no-action relief from the CFTC in order to offer such products for trading to U.S. customers or obtained comparable status or relief from a non-U.S. regulatory agency or (iii) a swap execution facility (SEF), swap designated contract markets (DCM), a Designated Clearing Organization (DCO) or other facility, trading system or platform that provides access to clearing.

(p) “Confidential Information” shall have the meaning ascribed to it in Section 12(b) of this Agreement.

(q) “Contract” shall mean a Futures Contract, Option on Futures Contract, Centrally Cleared Swap Contract, Option on Centrally Cleared Swap Contract, Standardized Option Contract, Futures Equivalent Swap Contract or Derived Contract.

(r) “Contribution Agreement” shall have the meaning ascribed in the Recitals to this Agreement.

 (s) “Derived Contracts” shall mean cash-settled Futures Contracts, Options on Futures Contract, Swaps and Options on Swaps the final settlement price of which is calculated using one or more values of a third party’s index that is calculated using the values of an S&P Stock Index. 

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Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

By way of example, the products branded as “TRAKRS” that were based in part on an S&P Index and were listed on CME prior to the Commencement Date are Derived Contracts.

(t) “Equity Index” shall mean any index (i) as to which 25% or more of the components are comprised of listed equity securities (including ETFs as to which equity securities are a significant factor in determining the price thereof) or (ii) as to which 25% or more of the total market capitalization or total value is represented by listed equity securities (including ETFs as to which equity securities are a significant factor in determining the price thereof).

(u) “Equity Index Complex Revenue” shall *****.
 

(v) “ETF” shall mean a pooled investment vehicle, trust, investment company or other collective or commingled investment vehicle (including, but not limited to, an issuer registered under the U.S. Investment Company Act of 1940), that has the following characteristics: (i) the vehicle issues, sells, and redeems blocks of shares or other interests, which blocks are sometimes referred to as “creation units”; (ii) the shares, units or similar interests thereof are listed on an exchange; and (iii) the investment objective thereof is to own a basket of stocks and/or other financial instruments (such as futures, options, and other derivative contracts) in an attempt to replicate substantially the price and dividend performance of the stocks represented by a single index, such as an S&P Stock Index.  

(w) “Futures Contracts” shall mean: (1)  all instruments: (A) the trading of which is within the jurisdiction of CFTC (assuming for this purpose that the instruments were traded in the United States regardless of where they are actually traded), (B) which are regulated by the CFTC as futures contracts (assuming for this purpose that such instruments were traded in the United States regardless of where they are actually traded), and (C) which any CME Entity has the authority to trade under its articles, by‐laws, and rules; and (2) those instruments which, as of September 24, 1997, meet all of the requirements specified in clause (1) of this Subsection (w) but subsequent to September 24, 1997 fail to meet the requirements of clause (1)(A) of this Subsection (r) solely because another U.S. regulatory authority (in addition to, or in substitution of, the CFTC) is given regulatory jurisdiction over such instruments.

(x) “Futures Equivalent Product” shall mean *****.
       
(y) “Futures Equivalent Swap Contract” shall mean *****.

(z) “Futures Equivalent Swap Contract License Agreement” shall have the meaning ascribed in Section 2(j)(4).

(aa) “Futures Equivalent Swap Contracts Sublicense Agreement” shall have the meaning ascribed in Section 2(j)(3).

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Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

(bb)  “Futures Equivalent Swap Contract Licensee” shall have the meaning ascribed in Section 2(j)(4).”

(cc) “Futures Sublicensee” shall have the meaning ascribed in Section 2(j)(1).

(dd) “Futures Sublicense Agreement” shall have the meaning ascribed in Subsection 2(j)(1). 

(ee) “GAAP” shall have the meaning ascribed in Appendix 3 Section 1(b).

(ff) “Indexed Contracts” shall mean (1) Futures Contracts, the final settlement price of which is calculated using one or more values of an S&P Stock Index; (2) Options on Futures Contracts; (3) Standardized Option Contracts, the underlying interest of which is the value of an S&P Stock Index; (4) Centrally Cleared Swap Contracts in which one of the cash flows that is exchanged is calculated using one or more values of an S&P Stock Index; (5) Options on Centrally Cleared Swap Contracts; (6) Futures Equivalent Swap Contracts; and (7) Derived Contracts, the final settlement price of which is a third-party index that is derived from the value of an S&P Stock Index and with respect to which S&P has obtained all necessary approvals and authorizations from the owner of such third-party index.  Indexed Contracts include, without limitation, S&P ETF Contracts and TRAKRS.

(gg) “Launch” shall mean, with respect to any Contract, the first day that such Contract begins trading on the CME or a CME Affiliate.

(hh) “Licensed Activities” shall mean, with respect to any Contracts, (i) the use of the S&P Stock Indices solely in connection with creating, issuing, listing, trading, settling, clearing, marketing, and promoting the Contracts; and (ii) the use and reference to the S&P Marks in connection with creating, issuing, listing, trading, clearing, marketing, and promoting the Contracts and with making such disclosures about the Contracts as CME deems necessary or desirable under any applicable federal or state laws, rules or regulations or under this Agreement in order to indicate the source of the S&P Stock Indices.

(ii) “Licensor” shall have the meaning ascribed in the Recitals to this Agreement.

(jj) “MHP” shall mean The McGraw-Hill Companies, Inc. and any successor in interest thereof.
 
(kk)  “M&A Transaction” shall have the meaning ascribed in Appendix 3 Subsection 1(b).

(ll) “Operating Agreement” shall mean the Limited Liability Company Agreement of 

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Licensor, to be entered into at the closing of the Transaction pursuant to the Contribution Agreement.

(mm) “Option on Futures Contracts” shall mean an option to purchase or sell Futures Contracts.  

(nn) “Option on Swaps” shall mean an option to purchase or sell Swap Contracts.

(oo) “Options Sublicensee” shall have the meaning ascribed in Subsection 2(j)(2).

(pp) “Options Sublicense Agreement” shall have the meaning ascribed in Subsection 2(j)(2). 

(qq) “Original Term” shall have the meaning ascribed in Subsection 6(a).

(rr) “S&P” shall mean, except where the context otherwise requires, (i) prior to the assignment contemplated by Section 6(b), S&P FS LLC and (ii) from and after such assignment, Licensor.

(ss) “S&P FS LLC” shall have the meaning ascribed in the Preamble of this Agreement.

(tt) “S&P ETF Contracts” shall mean all Futures Contracts, Option on Futures Contracts, Swap Contracts and Options on Swap Contracts (i.e., excluding Standardized Option Contracts), the final settlement price of which is calculated using one or more values of an S&P Stock Index ETF.

(uu) “S&P-GSCI Indices” shall mean any S&P-GSCI branded commodity indices that are currently maintained, calculated and disseminated by S&P.

(vv) “S&P-GSCI Marks” shall mean the marks identified in Appendix 1 to this Agreement (as updated by the parties from time to time) as S&P-GSCI Marks.
    
(ww) “S&P Index ETF” means an ETF as to which the sole underlying index is an S&P Stock Index.

(xx) “S&P Marks” shall mean the designations listed in Appendix 1 to this Agreement (as updated by the parties from time to time).

(yy) “S&P Stock Index” or “S&P Stock Indices” shall mean Equity Indices that S&P maintains, calculates and distributes and in which S&P asserts proprietary rights.  In addition, the term “S&P Stock Indices” will be deemed to include the S&P-GSCI Indices and any volatility index, variance indicator or buy-write index that use S&P Stock Index values or derived values, including those used as the basis for a license that S&P has previously granted to CBOE under the terms of 

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Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

Amendment No. 6 to the CBOE/S&P License Agreement, a copy of which Amendment No. 6 has previously been provided to CME.  S&P Stock Indices exclude indices that S&P is not authorized or permitted to license for Contracts hereunder as a result of rules imposed by a contributing exchange in its data license with S&P, or any applicable law, rule or regulation imposed by a government entity outside the United States.  S&P Stock Indices also exclude the S&P Global 100 Index.

(zz) “Specified Co-branded Index” shall mean an S&P Stock Index existing now or in the future that (i) is co-branded by S&P with a third party, (ii) has been developed and/or is maintained by S&P with a third party, (iii) is subject to restrictions on S&P’s ability to grant a license to CME without such third party’s consent, (iv) is not calculated using proprietary CME data and (v) includes components that are not U.S. stocks as material part of the index.

(aaa) “Standardized Option Contracts” shall mean American-style exercise or European-style exercise put or call options that: (i) are settled in any currency other than U.S. dollars (and not in a foreign currency set to fixed rate of exchange relative to U.S. dollars) or by physical delivery, (ii) have standardized terms, (iii) the underlying interest of which is an S&P Stock Index and (iv) which CME has the authority to trade under its articles, by‐laws, and rules.  

(bbb) “Sublicensed Futures Contracts” shall have the meaning ascribed in Subsection 2(j)(1).

(ccc) “Sublicensed Futures Equivalent Swap Contract” shall have the meaning ascribed in Section 2(j)(3).

(ddd) “Sublicensed Standardized Option Contracts” shall have the meaning ascribed in Subsection 2(j)(2). 

(eee) “Swap Contracts” shall mean “swaps” or “security-based swaps” as defined in the Dodd Frank Wall Street Reform and Consumer Protection Act; and is based on one or more S&P Stock Indices; provided, however, that Swap Contracts exclude Cleared OTC Option Contracts.  Swap Contracts include Cleared OTC Swaps; and further providing that no Futures Contract will be deemed a Swap Contract.  Futures Equivalent Swap Contracts are a subset of Swap Contracts.

(fff) “Term” shall have the meaning ascribed in Section 6(a).

(ggg) “Transaction” shall have the meaning ascribed in the recitals to this Agreement.

(hhh) “Trigger Date” shall mean the date on which CME’s Parent Aggregate Percentage Interest goes below the Lower Threshold *****. Capitalized terms used in this definition that are not defined herein shall have the meanings ascribed to them in the Operating Agreement or Schedule 9.4(c) thereof, as applicable.

(iii) “2005 Agreement” shall have the meaning ascribed in the recitals to this Agreement.

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Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

2.     GRANT OF LICENSE.

(a)     General.   Subject to the terms and conditions of this Agreement, S&P hereby grants to CME and its Affiliates worldwide licenses to use the S&P Stock Indices and the S&P Marks in connection with the Licensed Activities.  The parties understand that as of the Commencement Date, neither CME nor any Affiliate of CME is a registered options exchange in the U.S. or in any other jurisdiction, and this Agreement imposes no obligation on CME or a CME Affiliate, contractual or otherwise, to effect any such registration.  The foregoing licenses in all cases exclude any Specified Co-Branded Index.  S&P shall retain the right to license any Specified Co-branded Index and its associated trademarks to third parties as the basis for any Contracts or other index-based financial products. 

(b)     Index Value Dissemination Rights.  Subject to the terms and conditions of this Agreement, S&P further grants to CME a non-exclusive worldwide license to disseminate, at CME’s sole expense, the S&P Stock Indices, in real-time and delayed, solely to CME staff, regulatory agencies, and the CME trading floors.  CME shall ensure in this regard that any recipient of the S&P Stock Indices pursuant to the foregoing license will use the S&P Stock Indices data for internal and regulatory purposes only and not for redistribution. Without limiting the foregoing, nothing herein shall permit CME to include the S&P Stock Indices, in real time or delayed, with the dissemination by CME of last sale prices and quotes related to trading on CME.  The parties acknowledge that they are currently in negotiations on a new, separate agreement that will authorize CME to act as S&P’s agent in the dissemination of real time S&P Stock Indices data.

(c)     Limited Licenses.  CME acknowledges that (i) the S&P Stock Indices (except for the S&P indices branded as S&P Broad Market Indices (BMI)) are the exclusive property of S&P and S&P has and retains all proprietary rights therein (including, but not limited to, trademarks and copyrights) and (ii) except as contemplated by the last sentence of this Section 2(c), the S&P Marks are the exclusive property of S&P FS LLC and S&P FS LLC has and retains all proprietary rights therein (including, but not limited to, trademarks and copyrights). CME acknowledges that the S&P Stock Indices (except for the S&P BMI) and their compilation and composition and changes therein are in the complete control and discretion of S&P. CME acknowledges that the S&P BMI are the exclusive property of S&P and Citigroup, N.A., that S&P and Citigroup, N.A. have and retain all proprietary rights therein (including, but not limited to, copyrights) and that the S&P BMI and their compilation and composition and changes therein are in the complete control and discretion of S&P and Citigroup, N.A.  Except as otherwise specifically provided herein, S&P reserves all rights to the S&P Stock Indices, and S&P FS LLC and Licensor reserve all rights to the S&P Marks, in each case that are not expressly licensed hereunder and this Agreement shall not be construed to transfer to CME any right to, or interest in, the S&P Stock Indices or the S&P Marks, or in any copyright, trademark or proprietary right pertaining thereto.  CME acknowledges that S&P FS LLC will (subject 

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Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

to the terms of the Contribution Agreement) retain ownership of the S&P Marks following the assignment to Licensor contemplated by Section 6(b) and shall license such S&P Marks to Licensor pursuant to the MHP Brand License Agreement (as defined in the Contribution Agreement).

(d)     Licensing of Additional S&P Stock Indices.  Unless otherwise agreed by the parties in writing, this Agreement shall govern any and all licenses to S&P Stock Indices (whether newly created by S&P or resumed after discontinuation) and S&P Marks granted by S&P to CME during the Term of this Agreement.  

(e) Reserved 

(f) Restrictions on Indexed Contracts.  
(1)  S&P shall have the right to approve the settlement methodology, product construction and structure of all novel Standardized Option Contracts and Derived Contracts that are traded by CME hereunder.  S&P shall not unreasonably withhold or delay its approval of any such Indexed Contracts. 

(2)  With respect to Futures Contracts, Swap Contracts, Options on Futures Contracts and Option on Swap Contracts, aside from S&P’s limited approval rights provided below, there will be no restrictions placed on how CME structures such Indexed Contracts or how CME offers such Indexed Contracts for trading, except as specifically described below with respect to novel settlement methodology and product construction and certain other types of Futures Contracts and Swap Contracts.  For example, CME may structure a Futures Contract based upon a combination of S&P Stock Indices.  CME may also offer separate Futures Contracts on different S&P Stock Indices and facilitate spread trading among them through special quoting or pricing mechanisms.  For the avoidance of doubt, CME may continue to offer Futures Contracts, Options on Futures Contracts, Swap Contracts, Options on Swap Contracts, and Standardized Options Contracts for trading through any trading or quoting mechanism that CME offers today, including quoting based on volatility, without limitation of any trading or quoting mechanisms that CME may offer in the future.  

(3) If a Futures Contract, Option on Futures Contracts, Swap Contract or Option on Swap Contracts developed by CME or a third party uses a novel settlement methodology or novel construction, then:
(a) to the extent that the ultimate settlement value that uses an S&P Stock Index value (the “S&P Settlement Value”) constitutes protectable intellectual property, S&P shall own the settlement value, which shall be exclusively licensed to CME under this Agreement.
(b) to the extent that the methodology or product construction is CME’s development and constitutes protectable intellectual property, CME shall own the intellectual property rights in the methodology and product construction.

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(c) nothing in this Agreement shall give CME the right to license a third party to use the S&P Settlement Value in conjunction with the CME methodology or product construction, nor shall it give S&P the right to license a third party to use the CME methodology or product construction (or the settlement value that results from the use of it).
(d) CME shall obtain S&P’s prior approval before Launching a Futures Contract, Swap Contract, Option on Futures Contracts or Option on Swap Contracts that employs a novel settlement methodology or product construction, which approval may only be withheld if S&P reasonably concludes that the proposed Futures Contract, Swap Contract, Option on Futures Contracts or Option on Swap Contracts presents (i) a legal or regulatory risk to S&P FS LLC or Licensor, (ii) a risk of tarnishing S&P FS LLC’s or Licensor’s business reputation by virtue of its presumed association with a Futures Contract, Swap Contract, Option on Futures Contracts or Option on Swap Contracts including where an S&P Stock Index value might be combined with an index value of a competitor to S&P, or (iii) without limitation of S&P’s right of review under Section 10(a) of this Agreement, a risk to S&P FS LLC’s or Licensor’s, as applicable, rights in the S&P Marks that is caused by CME’s proposed name for the Futures Contract, Swap Contract, Option on Futures Contracts or Option on Swap Contracts.  In addition, with respect to any proposed Futures Contract, Swap Contract, Option on Futures Contracts or Option on Swap Contracts that is calculated using one or more values of an S&P Stock Index in combination with an index or indices of index providers other than S&P, regardless of whether it constitutes a novel settlement methodology or product construction, S&P’s prior approval, subject to the same conditions as set forth in this Subsection 2(f)(4), shall be required. 
(e) A settlement methodology or product construction shall be considered “novel” for purposes of this section if it is a methodology or construction that was not used in any product listed for trading on a global exchange on or before the Commencement Date and was not subsequently approved by S&P pursuant to the foregoing.
(f)   With respect to any new Derived Contract, CME agrees that such third party shall be required, to the extent required by law, to obtain a license or other authorization from S&P to use the relevant S&P Stock Index and S&P Marks in connection with that product before that product may be listed on CME.
(g) CBOE-S&P License. 
(i) Notwithstanding Section 2(f), CME will not list for trading Indexed Contracts that are exclusively licensed by S&P to CBOE or an Affiliate of CBOE under Amendment No. 6 to the CBOE/S&P License Agreement during the term of that amendment, including any renewals or extensions of such term, in that CME shall not use the S&P 500 or S&P 100 Indices to derive, maintain, publish, calculate or disseminate a Volatility Index, Variance Indicator or BuyWrite Index (as defined therein), or the S&P Marks, in connection with the creation, issuance, exercise of an investment product of any kind or character whatsoever, including without limitation Futures Contracts, Standardized Option Contracts, Swap Contracts, Options on Futures Contracts or Option on Swap Contracts.  The limitations of this Subsection 2(g) shall not apply to the extent that CME 

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is providing services to CBOE or other party duly licensed by S&P with that party’s consent.  Notwithstanding anything to the contrary in this Agreement (including Section 2(a)), CME agrees not to dispute and to “grandfather” under this Agreement, the exclusive rights that S&P granted to CBOE relating to the listing of certain futures products that use the S&P 500 index as described in Amendment No. 6 to the S&P-CBOE license provided to CME.  In consideration for this, S&P agrees to pay CME *****.  Notwithstanding anything to the contrary in this Agreement (including Section 2(a)), CME relinquishes any claim to list Indexed Contracts that use an S&P 500 variance, volatility or buy-write index to the extent that such products are granted exclusively to CBOE under its S&P license during the term of that license, including any renewals or extensions thereof.  For the avoidance of doubt, this protection of CBOE’s rights does not limit the pricing or quoting mechanisms through which CME offers allowed Indexed Contracts for trading, including, without limitation, quoting based on volatility.  The rights grandfathered to CBOE are non-transferable by S&P. Those rights shall revert to CME upon the expiration or termination of the grant to CBOE to the extent that those rights are otherwise granted to CME in this Agreement.  Notwithstanding anything to the contrary in this Agreement (including Section 2(a)), CME agrees to make no claim that this Agreement grants CME the right to list Indexed Contracts that use an Affiliate of CBOE’s proprietary indices, such as the VIX, or any other proprietary indices of a third party (other than co-branded indices that are expressly within the scope of the licenses granted under this Agreement). 
(ii) *****.
(h)    Reserved. 
(i) Composite Marks.  S&P hereby grants CME the right to combine its “CME,” “CME Group,” and “CME E-mini” marks (and such other marks as S&P may approve from time to time, such approval not to be unreasonably withheld or delayed) with the S&P Marks to form composite marks.  Such composite marks shall only be used in connection with Licensed Activities.  None of S&P FS LLC, Licensor or CME shall register or apply to register such composite marks in any jurisdiction without the other party’s prior written consent.  CME’s use of any S&P Marks in a composite mark shall inure to the benefit of S&P FS LLC and Licensor and CME shall obtain no rights in such S&P Marks as a result of such use.
(j)  Sublicenses.  
(1)  Subject to this Section 2(j), S&P hereby grants CME the right to sublicense CME’s rights pursuant to Section 2(a) to any third-party exchange or other organized trading facility that is located outside the United States (“Futures Sublicensee”) in connection with Futures Sublicensee’s creating, issuing, listing, trading, clearing, marketing and/or promoting Indexed Contracts that are Futures Contracts, Options on Futures Contracts, Swap Contracts or Options on Swap Contracts (“Sublicensed Futures Contracts”) and with making such disclosure about Sublicensed Futures Contracts as Futures Sublicensee deems necessary or desirable in order to indicate the source of the S&P Stock Indices.  The terms of any sublicense granted by CME hereunder shall be set forth in a sublicense agreement among S&P, CME and the Futures Sublicensee that is reasonably acceptable to S&P and CME (a “Futures Sublicense Agreement”), provided that CME shall (A) 

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provide S&P with a complete copy of any such Futures Sublicense Agreement once executed by all parties thereto, (B) S&P may elect not to enter into any Futures Sublicense Agreement in its sole discretion and (C) to the extent not specified therein, advise S&P in writing of the fees payable by such Futures Sublicensee to CME in respect thereof.  CME shall solely determine the fees payable by each Futures Sublicensee in respect of each Futures Sublicense Agreement, provided that in connection with each such Futures Sublicense Agreement, CME shall use commercially reasonable efforts to achieve commercially reasonable financial terms in favor of CME and S&P therein.  CME shall use commercially reasonable efforts to collect all amounts due from each Futures Sublicensee under the applicable Futures Sublicense Agreement.  Upon termination of this Agreement for any reason, all Futures Sublicense Agreements shall terminate unless otherwise agreed in writing by S&P and the Futures Sublicensee.
(2)  Subject to this Section 2(j), S&P hereby further grants CME the exclusive right to sublicense CME’s rights pursuant to Section 2(a) to any third-party exchange or other organized trading facility (“Options Sublicensee”) in connection with Options Sublicensee’s creating, issuing, listing, trading, clearing, marketing and/or promoting Standardized Option Contracts (“Sublicensed Standardized Option Contracts”) and with making such disclosure about Sublicensed Standardized Option Futures Contracts as Options Sublicensee deems necessary or desirable in order to indicate the source of the S&P Stock Indices.  The terms of any sublicense granted by CME hereunder shall be set forth in a sublicense agreement among S&P, CME and the Options Sublicensee that is reasonably acceptable to S&P and CME (an “Options Sublicense Agreement”), provided that CME shall (A) provide S&P with a complete copy of any such Options Sublicense Agreement once executed by all parties thereto, (B) S&P may elect not to enter into any Options Sublicense Agreement in its sole discretion and (C) to the extent not specified therein, advise S&P in writing of the fees payable by such Options Sublicensee to CME in respect thereof.  CME shall solely determine the fees payable by each Options Sublicensee in respect of each Options Sublicense Agreement, provided that in connection with each such Options Sublicense Agreement, CME shall use commercially reasonable efforts to achieve commercially reasonable financial terms in favor of CME and S&P therein.  CME shall use commercially reasonable efforts to collect all amounts due from each Options Sublicensee under the applicable Options Sublicense Agreement.  Upon termination of this Agreement for any reason, all Options Sublicense Agreements shall terminate unless otherwise agreed in writing by S&P and the Options Sublicensee.  For avoidance of doubt, nothing herein shall prevent S&P from entering into license agreements directly with any third-party options exchange in connection with the use of the S&P Stock Indices as the underlying interest in Standardized Option Contracts, in lieu of entering into a three-party Options Sublicense Agreement with CME.  
(3)  Subject to this Section 2(j), S&P hereby grants CME the right to sublicense CME’s rights pursuant to Section 2(a) to any Competitive Market (“Futures Equivalent Swap Contracts Sublicensee”) in connection with Futures Equivalent Swap Contracts Sublicensee’s creating, issuing, listing, trading, clearing, marketing, and/or promoting Futures Equivalent Swap Contracts and related Options on Swap Contracts (together, “Sublicensed Futures Equivalent Swap 

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Contracts”) and with making such disclosure about Sublicensed Futures Equivalent Swap Contracts as Futures Equivalent Swap Contracts Sublicensee deems necessary or desirable in order to indicate the source of the S&P Stock Indices; provided, however, that CME may grant such a sublicense only if required to do so by a law, regulator agency rule or regulation.  The terms of any sublicense granted by CME hereunder shall be set forth in a sublicense agreement among S&P, CME and the Futures Equivalent Swap Contracts Sublicensee that is reasonably acceptable to S&P and CME (a “Futures Equivalent Swap Contracts Sublicense Agreement”), provided that CME shall (A) provide S&P with a complete copy of any such Futures Equivalent Swap Contracts Sublicense Agreement once executed by all parties thereto, (B) S&P may elect not to enter into any Futures Equivalent Swap Contracts Sublicense Agreement in its sole discretion and (C) to the extent not specified therein, advise S&P in writing of the fees payable by such Futures Equivalent Swap Contracts Sublicensee to CME in respect thereof.  CME shall use commercially reasonable efforts to collect all amounts due from each Futures Equivalent Swap Contracts Sublicensee under the applicable Futures Equivalent Swap Contracts Sublicense Agreement.  Upon termination of this Agreement for any reason, all Futures Equivalent Swap Contracts Sublicense Agreements shall terminate unless otherwise agreed in writing by S&P and the Futures Sublicensee.  In the event that CME grants a license to a third party under this Section 2(j)(3) then: (1)  if the terms of the sublicense include license fees that are more favorable for Futures Equivalent Swap Contracts than those that are payable by CME hereunder, then the fees payable by CME hereunder in relation to Futures Equivalent Swap Contracts shall be adjusted to be no less favorable to CME than those provided to the third party, and Appendix 3 hereof shall be amended accordingly and (2) the fees collected from such Futures Equivalent Swap Contracts Sublicensee shall not become part of the Equity Index Complex Revenues but rather CME shall pay S&P ***** the amount CME actually collects from all such third parties for Futures Equivalent Swap Contracts.
 (4) Subject to this Section 2(j) and Section 11(c), S&P and CME agree that S&P may grant a license to any Competitive Market (“Futures Equivalent Swap Contracts Licensee”) in connection with Futures Equivalent Swap Contracts Licensee’s creating, issuing, listing, trading, clearing, marketing, and/or promoting Futures Equivalent Products and related Options on Futures Equivalent Swap Contracts (together, “Licensed Futures Equivalent Swap Contracts”) and with making such disclosure about Licensed Futures Equivalent Swap Contracts as Futures Equivalent Swap Contracts Licensee deems necessary or desirable in order to indicate the source of the S&P Stock Indices; provided, however, that except as otherwise provided in Section 11(c), S&P may grant such a license only if: 1. there is a threat of litigation concerning the need for or the scope of an intellectual property license required to, as applicable, create, issue, list, trade, or clear Futures Equivalent Swap Contracts, 2. such threat of litigation is in S&P’s reasonable judgment after consultation with CME, significant and credible, it being understood that a statement by a third party of a desire to create, issue, list, trade, or clear Futures Equivalent Swap Contracts without a license from S&P is by itself insufficient to be deemed significant and credible for this purpose, and 3. the risk of loss of intellectual property rights from an adverse ruling in such a litigation is  believed in S&P’s reasonable judgment to be significant.  The cost of any litigation by S&P under this Section 2(j)(4) shall be borne entirely 

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by S&P.  The terms of any such license granted by S&P hereunder shall be set forth in a license agreement between S&P and the Futures Equivalent Swap Contracts Licensee (a “Futures Equivalent Swap Contracts License Agreement”), provided that S&P shall (A) provide CME with prompt notice that S&P has begun license negotiations and updates on the status of the negotiations, (B) provide CME with a complete copy of any such Futures Equivalent Swap Contracts License Agreement once executed by the parties thereto, and (C) advise CME in writing of the fees payable by such Futures Equivalent Swap Contracts Licensee to S&P in respect thereof.  S&P shall solely determine the fees payable by each Futures Equivalent Swap Contracts Licensee in respect of each Futures Equivalent Swap Contracts License Agreement.  S&P shall use commercially reasonable efforts to collect all amounts due from each Futures Equivalent Swap Contracts Licensee under the applicable Futures Equivalent Swap Contracts License Agreement.  *****.   For avoidance of doubt, the granting by S&P of a license to a Futures Equivalent Swap Contracts Licensee pursuant to and in accordance with this paragraph shall not be deemed a violation of S&P’s obligations under Subsection 11(b). 

3.     EXCLUSIVITY.

(a)     Licensed Indices.  Subject to and except as otherwise provided in this Agreement, the license for the S&P Stock Indices granted pursuant to Subsection (2)(a) shall be exclusive for (i) Futures Contracts, Options on Futures Contracts with respect to all Licensed Activities and (ii) Futures Equivalent Swap Contracts and Options on Futures Equivalent Swap Contracts with respect to all Licensed Activities, beginning on the Commencement Date and ending on the date that is one (1) year prior to the end of the Term of this Agreement.  All other licenses granted by S&P pursuant to this Agreement shall be non-exclusive with respect to Indexed Contracts other than Futures Contracts, Options on Futures Contracts, Futures Equivalent Swap Contracts and Options on Futures Equivalent Swap Contracts authorized hereunder for the Term of this Agreement.   

(b)     S&P 500 Index.  For Futures Contracts and Options on Futures Contracts, CME’s exclusive rights to the S&P 500 Index will automatically extend through the date that is one (1) year prior to the end of the Term of this Agreement and will be non-exclusive for the last year of the Term of this Agreement.

(c) Non-S&P 500 Index.  For any S&P Stock Index other than the S&P 500 Index including an index family, for which CME lists Futures Contracts or Options on Futures Contracts, CME’s rights to such an index or index family shall be exclusive during the first three (3) years after the initial listing thereof and shall continue for each year thereafter so long as the average daily volume (“ADV”) of the Indexed Contracts over the six (6) months immediately preceding the first day of such year based on such an index or index family is at least ***** (it being understood that if ADV as of the first day of any year as so measured is less than *****, CME’s rights shall thereafter be non-exclusive whether or not ADV as so measured as of the first day of any later year is at least *****).  

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For purposes of this Section 3(c), certain S&P Stock Indices shall be treated as a family such that the exclusivity of the indices is based on the aggregate ADV of all Indexed Contracts listed on the indices within that family.  For illustration purposes, such index families shall include the growth & value index family; sector index including the emerging markets, carbon & ESG, property and the Shariah indices families; and geographic indices like global, Middle East & Africa, European, Japanese, Australian, Canadian, and Asian index families.   S&P shall make any final determinations as to what constitutes an index family, in its reasonable discretion.  

(d) Swap ADV.  For purposes of calculating ADV in this Section 3, Swap Contracts and Options on Swaps shall be considered as follows: 1. if with respect to any S&P Stock Index, both Futures Contracts and Swap Contracts are executed or cleared by CME then the ADV equivalent for the Swap Contracts and Options on Swaps is the notional value of the Swap Contracts and Options on Swaps executed or cleared in that month shall be divided by the value at the end of the month of the Futures Contract whose notional value is closest to $***** and that is based on the same S&P Stock Index, 2. if no Futures Contract is offered that is based on the same S&P Stock Index then the ADV equivalent for such Swap Contracts and Options on Swaps is the notional value that is executed or cleared divided by ***** dollars ($*****). 

(e) Loss of Exclusivity.  If CME’s license to any S&P Stock Index or index family with respect to Futures Contracts or Options on Futures Contracts is or becomes non-exclusive, S&P may license such S&P Stock Index or index family to one or more other exchanges, provided that (a) if S&P wishes the license to another exchange for the relevant S&P Stock Index to be exclusive, exclusivity will only take effect on the first date that, measured over the course of the six (6) months immediately preceding such date, the ADV on such other exchange of the Indexed Contracts based on the relevant S&P Stock Index or index family is at least *****, and such exclusive license will continue for each year thereafter so long as the ADV on such other exchange of the Indexed Contracts over the six (6) months immediately preceding the first day of such year based on the relevant S&P Stock Index or index family is at least ***** (it being understood that if ADV as of the first day of any year as so measured is less than *****, such other exchange’s rights shall thereafter be non-exclusive whether or not ADV as so measured as of the first day of any later year is at least *****) and (b) CME’s license for the relevant S&P Stock Index or index family will continue on a non-exclusive basis until such time, if any, that the other exchange’s license becomes exclusive as provided above, it being understood that, following the date such license becomes exclusive, CME will be permitted to orderly wind down any open interest in Futures Contracts, Centrally Cleared Swap Contracts, Options on Futures Contracts and Option on Centrally Cleared Swap Contracts that are outstanding; provided that such wind-down period shall not extend for more than thirty-six (36) months.  With respect to any S&P Stock Index or index family that S&P licenses to another exchange on an exclusive basis in accordance with the preceding sentence, CME’s license to such S&P Stock Index or index family will be suspended accordingly while such other exchange continues to meet the applicable ADV requirements for exclusivity and with respect to any S&P Stock Index or index family that S&P licenses to another exchange on a non-exclusive basis in accordance with 

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the preceding sentence, CME’s license hereunder will become non-exclusive with respect to such S&P Stock Index or index family. 

 4.    RIGHT OF FIRST REFUSAL ON NEW S&P STOCK INDICES.

(a)    During the Term of this Agreement, CME shall have a right of first refusal on licenses to base Indexed Contracts on any stock index or S&P-GSCI branded commodity index not licensed hereunder as of the Commencement Date and which is not a Specified Co-branded Index.  Prior to offering any such license to any other party as the basis for Indexed Contracts, S&P shall first request that CME list Indexed Contracts on such new index.  Upon such request, such new index shall become subject to the provisions of Subsection 3(c) and (d) as if CME had in fact begun listing Indexed Contracts on such new index as of the date of CME’s receipt of such request (whether or not CME actually did so). 
   
5.    LICENSE FEES.

(a)    CME shall pay S&P the License Fees as set forth in Appendix 3 hereto.   License Fees shall be due and payable as of the first day of the calendar quarter in which the closing of the Transaction occurs.  CME’s obligation to pay license fees under this Agreement shall not be affected even if (i) a court of competent jurisdiction determines that S&P may not prevent a Competitive Market from trading, settling or clearing Indexed Contracts without a license and such determination has not been overturned after exhaustion of all avenues of appeal; (ii) a regulatory body or court of competent jurisdiction issues a ruling or otherwise determines that the exclusivity provisions of this Agreement (i.e., pertaining to the use of the S&P Stock Indices as the basis for Futures Contracts or Option on Futures Contracts) violate any applicable law, rule or regulation, such that S&P is directed to grant licenses to one or more Competitive Markets to use the S&P Stock Indices as the basis for Futures Contracts or Option on Futures Contracts, and such ruling or other determination has not been overturned after exhaustion of all avenues of appeal; or (iii) there is otherwise a diminution or loss of recognized intellectual property rights in the S&P Stock Indices.  CME irrevocably and unconditionally waives any ability it may have under law or equity or otherwise to claim that its obligation to pay license fees to S&P under this Agreement is reduced or eliminated due to the lack of enforceability of the licenses granted by S&P to CME hereunder or for any other reason, and S&P shall not have any liability hereunder as a result of any occurrence described in clauses (i) through (iii).  CME acknowledges that the foregoing serves as a substantial inducement to S&P FS LLC to enter into this Agreement and for Licensor to accept the assignment contemplated by Section 6(b) and for S&P FS LLC and Licensor to effect the Transaction.  

(b)        ***** 

6.    TERM; ASSIGNMENT BY S&P FS LLC TO LICENSOR.

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(a)  Term.  The term of this Agreement (the “Term”) shall commence on the date on which this Agreement is entered into, which shall be the date of the closing of the Transaction (the “Commencement Date”). Subject to the proviso below, such Term shall continue in full force and effect until (and shall terminate upon) the later of (a) December 31, 2017 or (b) the date that is one (1) year after the Trigger Date occurs (the “Original Term”), unless terminated earlier in accordance with Section 7 hereof; provided, however, that: 

(1) if the Trigger Date occurs within ten (10) years of the Commencement Date, then Licensor shall have the option to extend the Term for up to ten (10) additional years following the last day of the Original Term.

(2) if under the terms of the Operating Agreement, (x) MHP exercises its MHP Special Call or its Drag-Along Right or (y) CME exercises its Tag-Along Right in connection with a Transfer by MHP of Membership Interests in Licensor and as a result the Trigger Date occurs, then CME shall have the option to extend the Original Term for up to ten (10) additional years following the last day of the Original Term; 

(3) if CME exercises its CME Special Put under the Operating Agreement in connection with a Supermajority Approval Termination, then CME shall have the option to extend the Original Term for up to five (5) additional years following the last day of the Original Term; and 

(4) if the Trigger Date occurs as a result of a requirement of law or a non-appealable order of a government regulatory authority prohibiting CME and/or its Affiliates from owning that amount, then CME shall have the option to extend the Original Term for up to ten (10) additional years following the last day of the Original Term. 

Capitalized terms used in this Section 6(a) that are not defined herein shall have the meanings ascribed to them in the Operating Agreement.

(b)     Assignment by S&P FS LLC to Licensor.  Immediately after the execution and delivery of this Agreement, all of S&P FS LLC’s rights and obligations under this Agreement shall automatically be assigned and transferred to Licensor (other than the rights or obligations that are expressly contemplated by the terms of this Agreement to remain with S&P FS LLC after such time), whereupon S&P FS LLC shall be released from all obligations so assigned or transferred (it being understood that S&P FS LLC shall remain a party to this Agreement following such assignment and shall retain its rights and obligations not so assigned or transferred to Licensor).  

7.     TERMINATION.  Except for a termination upon the end of the Original Term (for the avoidance of doubt, without limiting the provisions of Section 6(a) providing for extension of the Term), this Agreement may be terminated only as set forth below in this Section 7:

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(a)     Material Breach.  In the case of a material breach of any of the terms or conditions of this Agreement by either Licensor/S&P FS LLC, on the one hand, or CME, on the other hand, the other party may terminate this Agreement by giving thirty (30) days prior written notice to the non-breaching party of its intent to terminate, which notice shall specify the nature of the alleged breach, and such notice shall be effective on the date specified therein for such termination unless the breaching party shall correct such breach within thirty (30) days of receipt of such notice, provided that if the breach is incapable of cure within the thirty-day period and the breaching party is diligently and continuously making efforts to remedy the breach, then the Agreement shall not terminate unless the breach is not cured within ninety (90) days of receipt of such notice.

(b)     Discontinuation of an S&P Stock Index.  S&P or any third-party index provider, as the case may be, shall have the right in its sole discretion to cease compilation and publication of any of the S&P Stock Indices without liability hereunder and, upon prompt written notice to CME of such discontinuance and subject to Section 8 hereof, to terminate the license granted hereunder as to such discontinued S&P Stock Index and the associated S&P Marks; provided, however, that S&P shall use its commercially reasonable efforts to give CME at least one (1) year prior written notice of such discontinuation and further provided, however, that all Indexed Contracts that use the discontinued S&P Stock Index which are open and listed for trading on the date of such notice of termination was provided to CME, may nevertheless continue to be traded until such Indexed Contracts either expire and are no longer listed for trading or until thirty-six (36) months after such notice, whichever occurs first, except for the Derived Contracts known as BXY TRAKRS Contracts, which shall continue to trade until such BXY TRAKRS Contracts expire and are no longer listed for trading or until sixty (60) months following the date of such notice of termination, whichever occurs first.  CME’s obligations to include the revenues associated with respect to any Indexed Contract licensed pursuant to this Agreement and that use the discontinued S&P Stock Index in the calculation of Equity Index Complex Revenue shall terminate effective on the date on which the license for the discontinued S&P Stock Index is effectively terminated by S&P. 
    
(c) Cessation of Trading in or De-Listing of an S&P ETF.  S&P shall inform CME in writing if S&P becomes aware of any pending cessation of trading in, or de-listing of, an S&P ETF.  S&P shall have no other obligations to CME under this Agreement in connection with the cessation of trading in, or de-listing of, an S&P ETF.  CME understands that during the Term of this Agreement, one or more of the S&P Index ETFs may be de-listed or otherwise cease trading and in such event, S&P shall have no liability to CME arising out of such de-listing or cessation.   CME acknowledges that the de-listing of, or cessation in trading in, an S&P Index ETF can and will affect CME’s ability to continue to create, issue, list, trade, clear, market, and promote the associated S&P ETF Contracts.

(d) Bankruptcy.  In the case of any filing for bankruptcy, dissolution or liquidation of Licensor, CME may terminate this Agreement immediately upon written notice to S&P FS LLC and Licensor.  In the case of any filing for bankruptcy, dissolution or liquidation of CME, Licensor may terminate this Agreement immediately upon written notice to CME.

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8.     CME SUBSTITUTE INDEX AND CONTRACTS.

(a)     CME’s Rights Upon Discontinuation of an S&P Stock Index.  Excluding with respect to S&P ETF Contracts, if S&P discontinues compilation and publication of any S&P Stock Index licensed to CME under this Agreement, CME shall have the following rights:

(1)    S&P shall, for the purpose of enabling CME, if CME chooses, to compile and make use of its own substitute index (“CME Substitute Index”) with respect to any discontinued S&P Stock Index, provide CME with a continuing non-exclusive and royalty-free worldwide license to use the list of companies, shares outstanding and divisors for such discontinued S&P Stock Index as of the Index discontinuation date.  S&P shall have no further obligations to CME with respect to such discontinued S&P Stock Index or any Indexed Contract based upon such Index after furnishing CME with the aforesaid information.

(2)    As of the relevant Index discontinuation date, CME shall not trade any Indexed Contracts based upon the discontinued S&P Stock Index except as provided in Section 7(b) of this Agreement and as follows: Upon receipt of any notice of index discontinuation by S&P hereunder as provided in Section 7(b), CME may elect, by written notice to S&P, to redesignate the discontinued S&P Stock Index as a CME Substitute Index and continue to trade Indexed Contracts (“CME Substitute Contracts”) based upon such CME Substitute Index, except that, from the date of such notice of election until the Index discontinuation date of such S&P Stock Index, such CME Substitute Index shall be described in a manner to clearly differentiate it from the discontinued S&P Stock Index.  CME shall have no obligation to make any payment of fees to S&P with respect to the trading of CME Substitute Contracts that occurs after the Index discontinuation date.  After such election, CME may promote CME Substitute Contracts based upon the CME Substitute Index provided that the S&P Marks are not utilized by CME in connection therewith and CME prominently disclaims any relationship with S&P FS LLC and Licensor with respect to the CME Substitute Contracts.  

(b)     Discontinuation of Trademark Licenses.  If CME’s license to use any S&P Stock Index terminates because of the termination of this Agreement, or for any reason other than S&P’s discontinuation of its compilation and publication, then CME shall not use the name “Standard & Poor’s” or “S&P” in connection with the promotion or trading of any additional Indexed Contracts that use such S&P Stock Index; provided, however, that Indexed Contracts that use such S&P Stock Index, which are listed for trading on the date of termination, may be traded using the relevant S&P Marks until expiration or for 36 months after the date of termination, whichever occurs first, except as may be otherwise required by law or rule of a governing entity. Following such termination, if CME elects to trade CME Substitute Contracts on a CME Substitute Index, it may make information references only to such S&P Stock Index, provided that CME disclaims any relationship with S&P 

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FS LLC and Licensor in connection therewith.  The foregoing shall nevertheless depend on the fact that S&P shall continue to compile and publish such S&P Stock Index in which event S&P shall disseminate such Index to CME in the same fashion as is currently being done, except that CME shall bear any incremental costs incurred by S&P at any time in providing such service.

(c)     S&P BMI Series.  If at any time during the Term of this Agreement, Citigroup, N.A. for any reason ceases participating in the compilation and publication of the S&P BMI series,  thereby preventing S&P from continuing to license them to CME hereunder, S&P covenants and agrees that it shall, without interruption, itself compile and publish substantially similar substitute indices for CME’s use under the terms of this Agreement, and S&P shall have no other obligations, and no liability, to CME hereunder arising out of Citigroup, N.A. ceasing to participate in the compilation and publication of the S&P BMI series.  In such event, the parties agree that such substitute indices shall replace the S&P BMI series under this Agreement, and that CME’s use of the S&P BMI series shall cease.  It is understood that the licensing of any such substitute indices shall be evidenced by a written amendment to this Agreement, executed by S&P and CME.

9.    S&P OBLIGATIONS.

(a)     Regulatory Approvals or Investigations.  S&P shall reasonably assist CME in connection with the preparation of factual materials for presentation to the CFTC, or any other governmental entity, in connection with any application by CME for approval to trade any of the Indexed Contracts licensed hereunder, or any investigations or hearings regarding any such Indexed Contracts.

(b)     Calculation and Dissemination of Index Values.  S&P or its agent shall compute and, in a manner reasonably satisfactory to CME, disseminate to CME, the value of each of the S&P Stock Indices at a mutually agreeable frequency.  The foregoing shall be at S&P’s expense, except that S&P shall not be obligated to pay for any hardware, software, communications or similar expenses associated with the receipt by CME of S&P Stock Index values.  S&P, or its agent, shall provide CME each trading day with respect to each S&P Stock Index licensed to CME hereunder a special opening quotation for use in settling Indexed Contracts that use such S&P Stock Index as well as the percentage of underlying stocks that have opened trading that day in the primary market or that have resumed trading after a trading halt in the primary market.

(c)    Third Party Trademarks and Intellectual Property.  CME acknowledges that certain designations used in the names of the S&P ETFs (e.g., “iShares”) and other intellectual property rights embodied therein belong to third parties.  No rights to use trademarks or other intellectual property belonging to third parties, with the exception of the S&P BMI series, are conveyed by this Agreement.  S&P shall reasonably cooperate with CME in acquiring such rights to the extent such rights are necessary for CME to create, market, trade, clear or promote S&P ETF Contracts, however, CME is solely responsible for securing all necessary licenses to use third- party trademarks and intellectual property.

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(d) Swap Licensing.  Nothing in this Agreement shall prevent S&P from granting a license to a third party to trade Bilateral Swap Contracts. 

10.    CME’s OBLIGATIONS.

(a)     General.  CME shall use its commercially reasonable efforts to protect the goodwill and reputation of S&P FS LLC and Licensor and of the S&P Marks in connection with their use under this Agreement.  CME shall maintain high standards of fairness and truthfulness in, and shall allow S&P, upon its request, to review and approve all CME advertisements, brochures, promotional and informational materials relating to or referring to the S&P Stock Indices or the Indexed Contracts.  S&P shall safeguard the confidentiality of any promotional or informational materials furnished by CME for S&P’s review, as provided for in Section 12(b) hereof.

(b)     Compliance with Applicable Laws.  CME shall use its commercially reasonable efforts to comply with the federal commodities laws and the rules thereunder insofar as those laws and rules relate to the Indexed Contracts licensed hereunder.  CME shall take all necessary steps to ensure that the trading of the Indexed Contracts is carried out in accordance with high ethical and legal standards.  S&P shall have no obligation or liability in connection therewith.  

(c) CME Rulebook Disclaimers.  CME shall use and disseminate the S&P Stock Indices and the S&P Marks only in compliance with the terms and conditions of this Agreement to ensure that S&P FS LLC’s and Licensor’s rights in the S&P Stock Indices and the S&P Marks, as applicable, are in no way diminished or jeopardized and CME shall use its commercially reasonable efforts to ensure that the public is in no way confused or misled as to such rights.  CME shall include the limitation on liability and disclaimers set forth in Appendix 2 (“CME Disclaimers”) to this Agreement in its rules, and take any other action necessary to ensure that its members trading in Indexed Contracts are aware of the disclaimers and aware of, and subject to, the limitation on liability set forth in Appendix 2.

(d) Cross-Margining Program.  CME will use its commercially reasonable efforts to include the Futures Contracts and Option on Futures Contracts in CME’s existing cross-margining program with the Options Clearing Corporation unless CME reasonably determines in any case that such cross-margining program is not appropriate. 

(e)     Regulatory Approvals.  CME shall promptly file for and use its commercially reasonable efforts to obtain and maintain any regulatory approval for the trading of Indexed Contracts that is required during the Term of this Agreement.

(f)     CME Warranties.  The CME represents and warrants to S&P that (1) the execution and performance of this Agreement by the CME will not conflict with, or result in a breach or violation 

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of, any other agreement (written or oral) or instrument to which CME is party or by which it is bound, and (2) this Agreement has been duly authorized, executed and delivered by CME and constitutes a valid and legally binding obligation of CME, enforceable in accordance with its terms.

(g)  Equity Index Complex Revenues.  CME acknowledges that the license fees payable to S&P hereunder are premised on an ongoing, long-term commitment by CME to the success of its equity index business.  Accordingly, CME agrees to use commercially reasonable efforts during the Term of this Agreement to maximize Equity Index Complex Profits to the same extent as it would were S&P not entitled to a share of CME’s Equity Index Complex Profits hereunder, subject in all cases to any restrictions that are imposed on CME by law, rule or regulation.

(h) Listing of New Indexed Contracts.   In addition to its obligations under Section 2(f), CME shall promptly inform S&P in advance of each proposed listing by CME of any Indexed Contract that is not listed on CME as of the Commencement Date.  This obligation does not apply to the listing of new contract months (expirations). 

(i) Swaps Report.  CME shall provide to S&P a quarterly report within thirty (30) days of the end of each calendar quarter.  The format and contents of such report shall be in CME’s sole discretion but it shall at a minimum include the number of Swap Contracts that were cleared by CME and its Affiliates during the quarter.    

   
11.     PROTECTION OF VALUE OF LICENSE.

(a)     Trademark Registrations.  During the Term of this Agreement, S&P FS LLC shall use its commercially reasonable efforts to maintain in full force and effect U.S. federal registrations of “Standard & Poor’s®,” “S&P®” and “S&P 500®.”  CME shall reasonably cooperate with S&P FS LLC and/or Licensor, as applicable, at S&P’s expense, in the maintenance of such rights and registrations and shall do such acts and execute such instruments as are reasonably necessary and appropriate for such purposes.

(b)     Unlicensed Use of S&P Stock Indices or S&P Marks.    Subject to Section 11(c), during the Term of this Agreement: (i) S&P shall have an ongoing obligation to use commercially reasonable efforts to protect the value of the rights licensed hereunder consistent with S&P FS LLC’s current intellectual property protection practices as of the Commencement Date, including through (A) initiation of litigation in its discretion against Competitive Markets in response to material intellectual property challenges, (B) enforcement efforts against Competitive Markets reasonably requested by CME with respect to its exclusive rights under this Agreement and (C) good faith consideration of enforcement efforts requested by CME with respect to its other rights under this Agreement; and (ii) S&P shall enter into licenses with CFD providers and other non-material users of the S&P Stock Indices that are licensed exclusively pursuant to this Agreement only if (x) such 

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licenses do not materially impair the value of the exclusive rights licensed to CME pursuant to this Agreement, (y) S&P has consulted with CME regarding such licenses and (z) such licenses are not for a term (or renewed with the effect being a term) exceeding ***** years without the consent of CME. Notwithstanding anything to the contrary, subject to clauses (i)(B) and (C) of the preceding sentence, S&P shall have sole control over all litigation with third parties relating to intellectual property licensed pursuant to this Agreement, provided that CME will have the right to participate in such litigation at its own expense.

The costs of any litigation brought by S&P under this Section 11(b) shall be borne entirely by S&P.  CME may, in its sole discretion, join any such litigation in order to protect its rights, including seeking monetary damages.  S&P will continue to have sole control over such litigation at its option where CME voluntarily joins a lawsuit initiated by S&P.  However, CME shall have sole control over its own decisions as a party to any causes of action separately initiated by CME, even if subsequently joined with a lawsuit initiated by S&P; provided, however, that in no event will CME be permitted to initiate a separate litigation challenging the unlicensed use of the S&P Stock Indices and/or S&P Marks unless S&P has first elected not to initiate litigation in response to such unlicensed use as contemplated under this Section 11(b).  To the extent any litigation involves the S&P Marks, Licensor shall be responsible for engaging S&P FS LLC as a party to the extent necessary.

 (c) Unlicensed Use by Entities Other Than a Competitive Market or in Relation to Trading or Execution of Futures Equivalent Swap Contracts.  If (i) an entity that is not a Competitive Market lists for trading an unlicensed product in violation of CME’s exclusive rights (i.e., with respect to Futures Contracts or Option on Futures Contracts) or (ii) a swap execution facility or other trading platform lists for trading Futures Equivalent Swap Contracts in violation of CME’s exclusive rights hereunder, S&P shall use commercially reasonable efforts to prevent such unlicensed use.  *****.  Unlicensed or licensed use as provided above by an entity that is not a Competitive Market, or is a swap execution facility or other trading platform in connection with Futures Equivalent Swap Contracts, will not be deemed a breach of S&P’s obligations under this Agreement.  *****.

12.     PROPRIETARY RIGHTS.

(a)     Security Measures.  CME acknowledges that the S&P Stock Indices, including the S&P BMI series, are valuable assets of, and are selected, coordinated, arranged and prepared solely by S&P, and S&P and Citigroup, N.A., respectively, through the application of methods and standards of judgment used and developed through the expenditure of considerable work, time and money.  CME agrees that it will take such security measures as are reasonably necessary in order to prevent any unauthorized use of the information provided to it concerning the selection, coordination, arrangement and preparation of the S&P Stock Indices, including the S&P BMI series.

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(b)     Obligations of Confidentiality.  Each of S&P FS LLC, Licensor and CME shall treat as confidential, and shall not disclose or transmit to any third party: (1) any documentation or other materials that are marked as “Confidential and Proprietary” by the providing party; or (2) the terms of this Agreement (“Confidential Information”).  Confidential Information as described in clause (1) of the preceding sentence shall not include: (A) any information that is available to the public or to the receiving party hereunder from sources other than the providing party (provided that such source is not subject to a confidentiality agreement with regard to such information); or (B) any information that is independently developed by the receiving party without use of or reference to information from the providing party.  Notwithstanding the foregoing, a party may reveal Confidential Information to any regulatory agency or court of competent jurisdiction if such information to be disclosed is: (i) approved for disclosure in writing by the providing party; or (ii) required by law, regulatory agency or court order to be disclosed by the receiving party, provided, however, that if permitted by law, prior written notice of such required disclosure shall be given to the providing party and further provided, however, that the receiving party shall cooperate with the providing party to limit the extent of such disclosure.
   
13.    REPRESENTATIONS, WARRANTIES, DISCLAIMERS.

(a)     Rights to Grant Licenses.  S&P represents and warrants that S&P is the owner of, or has the right to license CME to use, the S&P Stock Indices and S&P Marks, as provided herein.    

(b)     Responsibilities for Errors and Omissions.  S&P shall promptly correct, or instruct its agent to correct, any errors made in S&P’s computations of the S&P Stock Indices that are brought to S&P’s attention by CME or any other party; provided, however, that nothing in this Section 13 shall give CME the  right to exercise any judgment or require any changes with respect to S&P’s method of composing, calculating or determining the S&P Stock Indices; and, further provided, however, that nothing in this Section 13(b) shall be deemed to modify the other provisions of this Section 13.

 (c)     Limitation of Liability.  S&P shall obtain information for inclusion in or for use in the calculation of the S&P Stock Indices from sources that S&P considers reliable, but S&P accepts no responsibility for, and shall have no liability for, any errors, omissions or interruptions therein.  S&P does not guarantee the accuracy and/or the completeness of the S&P Stock Indices or any data included therein in connection with the trading of the Indexed Contracts, or any other use.   S&P makes no warranty, express or implied, as to results to be obtained by any person or any entity from the use of the S&P Stock Indices or any data included therein.  S&P makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the S&P Stock Indices or any data included therein.

(d)    No Special Damages.  Except for claims arising out of or relating to willful misconduct, fraud, breach of confidentiality and amounts payable to third parties pursuant to a party’s 

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indemnification obligations, no party shall have any liability for lost profits or indirect, punitive, special, or consequential damages (including lost profits) arising out of this Agreement, even if notified of the possibility of such damages.

(e)     Limitation on Damages.  Except for claims arising out of or relating to willful misconduct, fraud, breach of confidentiality and indemnification obligations, or use by CME or an Affiliate of CME of the S&P Stock Indices and/or S&P Marks in breach of Sections 2 or 3 of this Agreement, and without diminishing the disclaimers and limitations set forth in this Section 13, in no event shall the cumulative liability of S&P FS LLC and Licensor to CME exceed the license fees actually paid to S&P hereunder over the one-year period preceding the date on which S&P FS LLC or Licensor, as applicable, is found liable to CME, and in no event shall the cumulative liability of CME to S&P exceed the license fees actually paid or payable to S&P hereunder over the one-year period preceding the date on which CME is found liable to S&P (provided that any liability for unpaid license fees shall not be subject to or count towards this limitation on CME’s liability).  The parties agree that these limitations on liability are reasonable under the circumstances.

14.    INDEMNIFICATION.

(a)     CME’s Indemnification of S&P.  Except as provided in Subsection (b) below, CME shall indemnify and hold harmless S&P FS LLC, Licensor, their respective Affiliates and their respective officers, directors, employees and agents against any and all judgments, damages, costs or losses of any kind (including reasonable attorneys’ and experts’ fees) as a result of any third-party claim, action, or proceeding that arises out of or relates to:  (1) CME’s performance of its obligations or exercise of its rights under this Agreement; or (2) any Indexed Contracts that are created, issued, listed, traded, settled or cleared by CME or its Affiliates; provided, however, that S&P notifies CME promptly of any such claim, action or proceeding.  CME shall periodically reimburse S&P FS LLC and Licensor for their expenses incurred under this Section 14 as requested by S&P.  Each of S&P FS LLC and Licensor shall have the right, at its own expense, to participate in the defense of any claim, action or proceeding against which it is indemnified hereunder; provided, however, it shall have no right to control the defense, consent or judgment, or agree to settle any such claim, action or proceeding without the written consent of CME without waiving the indemnity hereunder.  CME, in the defense of any such claim, action or proceeding, except with the written consent of S&P, shall not agree to the entry of any judgment or enter into any settlement which either does not include, as an unconditional term, the grant by the claimant to S&P FS LLC and Licensor of a release of all liabilities in respect of such claims or which otherwise adversely affects the rights of S&P FS LLC or Licensor.

(b)     Exclusion from CME’s Indemnification Obligation.  CME’s indemnification obligations under Subsection (a) above shall not apply to:  (1) willful misconduct, fraud, breach of confidentiality of any of S&P’s officers, directors, employees, or agents; (2) ***** in the S&P Stock Indices or any data included therein originated by S&P; or (3) any breach by S&P of its 

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representations, warranties, or agreements made in this Agreement.

(c)    S&P’s Indemnification of CME.  Except as provided in Subsection (d) below, S&P shall indemnify and hold harmless CME, its Affiliates and their officers, directors, employees and agents against any and all judgments, damages, costs or losses of any kind (including reasonable attorneys’ and experts’ fees) as a result of any claim, action, or proceeding that arises out of or relates to: (1) a breach by S&P of its representations, warranties and agreements hereunder; or (2) the willful or intentional misconduct of any of S&P’s officers, directors, employees, or agents; provided, however, that CME notifies S&P promptly of any such claim, action or proceeding.  S&P shall periodically reimburse CME for its expenses incurred under this Section 14 as requested by CME.  CME shall have the right, at its own expense, to participate in the defense of any claim, action or proceeding against which it is indemnified hereunder; provided, however, it shall have no right to control the defense, consent or judgment, or agree to settle any such claim, action or proceeding without the written consent of S&P without waiving the indemnity hereunder.  S&P, in the defense of any such claim, action or proceeding, except with the written consent of CME, shall not agree to entry of any judgment or enter into any settlement which either does not include, as an unconditional term, the grant by the claimant to CME of a release of all liabilities in respect of such claims or which otherwise adversely affects the rights of CME. 

(d)     Exclusion from S&P’s Indemnification Obligation.  S&P’s indemnification obligations under Subsection (a) above shall not apply to: (1) willful misconduct, fraud, breach of confidentiality of any of CME’s officers, directors, employees, or agents; or (2) any breach by CME of its representations, warranties, or agreements made in this Agreement.

15.     FORCE MAJEURE.

None of S&P FS LLC, Licensor or CME shall bear responsibility or liability for any losses arising out of any delay in or interruptions of their respective performance of their nonmonetary obligations under this Agreement due to any act of God, act of governmental authority or act of public enemy or due to war, the outbreak or escalation of hostilities, riot, fire, flood, civil commotion, insurrection, labor difficulty (including, without limitation, any strike, or other work stoppage or slow down), severe or adverse weather conditions, power failure, communications line failure, or other similar cause beyond the reasonable control of the party so affected.
   
16.    INJUNCTIVE RELIEF.

In the event of a material breach by S&P FS LLC, Licensor or CME of provisions of this Agreement relating to the Confidential Information of another party, the parties acknowledge and agree that damages would be an inadequate remedy and that the non-breaching party shall be entitled to preliminary and permanent injunctive relief to preserve such confidentiality or limit improper disclosure of such Confidential Information, but nothing herein shall preclude the non-breaching 

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party from pursuing any other action or remedy for any breach or threatened breach of this Agreement.  In the event of a material breach by CME of provisions of this Agreement relating to dissemination  of the S&P Stock Indices or the unauthorized use of the S&P Stock Indices or S&P Marks, CME acknowledges and agrees that damages would be an inadequate remedy to S&P FS LLC and Licensor and that S&P FS LLC and Licensor shall be entitled to preliminary and permanent injunctive relief to enforce the provisions hereof, but nothing herein shall preclude S&P FS LLC or Licensor from pursuing any other action or remedy for any breach or threatened breach of this Agreement.  All remedies hereunder shall be cumulative.

17.     GENERAL PROVISIONS.

(a)     Assignment and Delegation.  This Agreement is solely and exclusively between the parties hereto and, except as contemplated under Section 6(b), shall not be assigned or transferred (whether by operation of law or otherwise), nor shall any duty hereunder be delegated, by either Licensor/S&P FS LLC or CME, without the prior written consent of the other party, and any attempt to so assign or transfer this Agreement or delegate any duty hereunder without such written consent shall be null and void.  This Agreement shall be valid and binding on the parties hereto and their successors and permitted assigns.

(b)     Entire Agreement; Effect on 2005 Agreement.  This Agreement, the Contribution Agreement and the other Transaction Documents (as such term is defined in the Contribution Agreement) constitute the entire agreement of the parties hereto with respect to the subject matter of this Agreement.  Effective on the Commencement Date, this Agreement shall supersede and replace the 2005 Agreement and all other previous agreements between the parties, if any, with respect to the subject matter of this Agreement (other than the Contribution Agreement and the other Transaction Documents (as such term is defined in the Contribution Agreement)); provided, however, that Appendix 7 of the 2005 Agreement and its related provisions will remain in full force and effect until superseded and replaced by the separate agreement between the parties that is referred to in Subsection 2(b).  There are no oral or written collateral representations, agreements, or understandings with respect to the subject matter of this Agreement except as provided herein or in the Contribution Agreement or the other Transaction Documents (as such term is defined in the Contribution Agreement).

(c)     Non-Waiver and Amendments.  No waiver, modification, or amendment of any of the terms and conditions hereof shall be valid or binding, unless such waiver, modification, or amendment is in writing and signed by a duly authorized officer of each of the parties hereto.

(d)     Effect of Breach.  No breach, default or threatened breach or default of this Agreement by S&P FS LLC or Licensor shall relieve CME of its obligations under this Agreement with respect to the protection of the property or proprietary nature of any property which is the subject matter of this Agreement. 

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(e)     Notices.  All notices and other communications under this Agreement shall be: (1) in writing; (2) delivered by hand, by registered or certified mail, return receipt requested, or by facsimile transmission to the address or facsimile number set forth below or such address or facsimile number as any party shall specify by a written notice to the other; and (3) deemed given upon receipt.

Notice to S&P FS LLC or Licensor:
McGraw-Hill Financial 
55 Water Street
New York, New York 10041
Attention:        President
Facsimile No:      (212) 438-1245

With a copy to:
The McGraw-Hill Companies
1221 Avenue of the Americas
New York, NY 10020
Attention:    General Counsel
Facsimile No:     (212) 512-4827

Notice to CME:
Chicago Mercantile Exchange
20 South Wacker Drive
Chicago, IL 60606
Attention:        CEO 
Facsimile No:    (312) 930-3207

With a copy to:
Chicago Mercantile Exchange
20 South Wacker Drive
Chicago, Illinois 60606
Attention:        General Counsel
Facsimile No:    (312) 930-3323

(f)     Governing Law.  This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of New York.

(g)     Choice of Jurisdiction.  Each party agrees that in connection with any legal action or proceeding arising with respect to this Agreement, such action or proceeding shall be brought only in the United States District Court for the Southern District of New York or in the Supreme Court of the State of New York in and for the First Judicial Department, and each party agrees to submit to the jurisdiction of those courts and venue in those courts and to waive any claim that either court is an inconvenient forum.

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(h)     Survival.  Section 12, Section 13 and Section 14 shall survive the termination of this Agreement.

(i)    Interpretation.  Captions, headings and titles contained in this Agreement and the Schedules attached hereto are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement or the Schedules.  When a reference is made in this Agreement to Articles, Sections or Schedules, such reference shall be to an Article or Section of or Schedule to this Agreement unless otherwise indicated.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “herein,” “hereof,” “hereunder” and words of similar import shall be deemed to refer to this Agreement as a whole, including the Schedules hereto, and not to any particular provision of this Agreement.  Any pronoun shall include the corresponding masculine, feminine and neuter forms.  The term “primarily” includes “exclusively” unless the context otherwise requires.  

(j)     No Third-Party Beneficiaries.  The provisions of this Agreement are solely for the benefit of CME, Licensor and S&P FS LLC and are not intended to, and do not create, any rights or causes of actions on behalf of any third party.

[Signature page follows.]

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first set forth above.

	
		
	STANDARD & POOR’S FINANCIAL SERVICES LLC
	CHICAGO MERCANTILE EXCHANGE INC.

	BY /s/ Del Johnson   
	BY/s/Kathleen M. Cronin   

	Name: Del Johnson    
	Name: Kathleen M. Cronin   

	Title: Chief Financial Officer, S&P Indices   
	Title: Senior Managing Director   

	Date: June 29, 2012   
	Date: June 29, 2012   

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Table of Appendices
		
	1.
	S&P Marks

		
	2.
	CME Disclaimers

		
	3.
	License Fees

		
	4.
	S&P Stock Index Fees

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Appendix 1. S&P Marks
The S&P Marks collectively covered by and referred to in this Agreement are the following (Specified Co-branded Indices in italics and underlined):

Standard & Poor’s
S&P
S&P 100
S&P 1000
S&P 1000 Growth and Value    
S&P 1000 Pure Growth and Pure Value
S&P 500    
S&P 500 130/30 Strategy
S&P 500 2x Inverse Daily    
S&P 500 2x Leverage Daily
S&P 500 Dividend Aristocrats    
S&P 500 Dividend Aristocrats Risk Control Indices
S&P 500 Dividend Index    
S&P 500 Gold Hedged Index    
S&P 500 Growth and Value
S&P 500 High Beta                           
S&P 500 High Quality Rankings Index 
S&P 500 Inverse Daily                        
S&P 500 Low Quality Rankings Index 
S&P 500 Oil Hedged Index
S&P 500 Pure Growth and Pure Value    
S&P 500 Risk Control Indices
S&P 500 Shariah    
S&P 700    
S&P 900
S&P 900 Growth and Value    
S&P 900 Pure Growth and Pure Value

A
S&P Access Africa    
S&P Access Africa Risk Control 
S&P Africa 40    
S&P Africa 40 Risk Control Index 
S&P Africa Frontier    
S&P Africa Frontier Shariah
S&P Agribusiness North America    
S&P All STARS
S&P Alpha Control 3 Strategy Index    
S&P Asia 50    

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S&P Asia 50 Risk Control Indices 
S&P Asia Alternative Energy    
S&P Asia Infrastructure
S&P Asia Infrastructure Daily Risk Control Indices    
S&P Asia Pacific BMI
S&P Asia Pacific Emerging    
S&P Asia Pacific Select REIT 40
S&P Asia Property 40    
S&P Asia Water
S&P/ASX 100
S&P/ASX 20
S&P/ASX 200
S&P/ASX 200 Risk Control Indices
S&P/ASX 200 VIX
S&P/ASX 300
S&P/ASX 300 Metals & Mining
S&P/ASX 50
S&P/ASX All Australian 200
S&P/ASX All Australian 50
S&P/ASX All Ordinaries
S&P/ASX All Ordinaries Gold 
S&P/ASX Dividend Opportunities
S&P/ASX Emerging Companies 
S&P/ASX Industrials and Resources
S&P/ASX Infrastructure 
S&P/ASX MidCap 50
S&P/ASX Small Ordinaries

B
S&P Balanced Equity and Bond Index Series    
S&P BMI Country Shariah 
S&P BMI Global Sector Shariah    
S&P BMI Regional Shariah 
S&P Brazil ADR Index    
S&P BRIC 40
S&P BRIC 40 Risk Control Indices    
S&P BRIC Shariah
S&P BRICT Daily Risk Control Indices    
S&P/Businessweek Global Innovation

C
S&P China & Hong Kong BMI 
S&P China Ex A-B-Shares BMI    
S&P CIVETS 60    
S&P CNX 500 Shariah

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S&P CNX Nifty
S&P CNX Nifty Futures
S&P CNX Nifty Shariah
S&P Commodity Producers Index Series    
S&P Completion Index
S&P Composite 1500    
S&P Composite 1500 Growth and Value                                       
S&P Composite 1500 Pure Growth and Pure Value            
S&P Consumer Finance Index                                                     
S&P/CITIC 100
S&P/CITIC 200
S&P/CITIC 300
S&P/CITIC 50    
S&P/CITIC China 30
S&P/CITIC China A-Share Dividend Opportunities    
S&P/CITIC China Style
S&P/CITIC SmallCap 

D
S&P Developed BMI    
S&P Developed BMI Shariah
S&P Developed LargeMidCap Shariah    
S&P Developed Pan Asia Ex-Japan BMI 
S&P Developed Property    
S&P Developed REIT
S&P Developed SmallCap Shariah    
S&P Dynamic Asset Exchange Index Series    
S&P Dynamic Futures Index
S&P Dynamic Multi Asset Strategy

E
S&P EMEA BMI
S&P Emerging Asia Consumer IndexS&P Emerging BMI    
S&P Emerging Markets Dividend OpportunitiesS&P Emerging Markets Infrastructure Daily Risk Control Indices
S&P Emerging Markets Infrastructure IndexS&P Emerging Markets Shariah
S&P Equal Weight Index
S&P ESG India
S&P Ethical Pan Asia Select Dividend Opportunities IndexS&P Euro    
S&P Euro 75
S&P Euro Plus    
S&P Europe 350
S&P Europe 350 Daily Risk Control Indices
S&P Europe 350 Dividend AristocratsS&P Europe 350 Shariah    
S&P Europe BMI

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S&P Europe Dividend Opportunities    
S&P Europe Select Plus Custom Index 
S&P Europe STARS    
S&P Extended Frontier 150    
S&P/EGX ESG

F
S&P Factor Index Series    
S&P Frontier BMI

G
S&P GCC    
S&P GCC 40
S&P GCC Shariah    
S&P Global 1200    
S&P Global Agribusiness Composite
S&P Global Agribusiness Index    
S&P Global Alternative Energy
S&P Global BMI    
S&P Global BMI Shariah
S&P Global Challengers 40
S&P Global Challengers Pan Asia Ex-China
S&P Global Clean Energy    
S&P Global Clean Energy Daily Risk Control Indices
S&P Global Consumer Enterprises Index
S&P Global Dividend Opportunities
S&P Global Eco Index    
S&P Global Gold
S&P Global Healthcare Shariah
S&P Global Infrastructure
S&P Global Infrastructure Risk Control Indices
S&P Global Infrastructure ShariahS&P Global Luxury Index    
S&P Global Natural Resources Daily Risk Control IndicesS&P Global Natural Resources Index    
S&P Global Nuclear Energy
S&P Global Oil Index    
S&P Global Property
S&P Global Property 40 Index    
S&P Global Property ShariahS&P Global REIT    
S&P Global Timber and ForestryS&P Global Water Index    
S&P Greater China Ex-Taiwan-ListedS&P GSCI    
S&P GSCI Agriculture Capped ComponentS&P GSCI Agriculture Enhanced Select Index    
S&P GSCI All MetalsS&P GSCI Capped Indices    
S&P GSCI Covered Call Select IndexS&P GSCI Crude Oil Covered Call Index    
S&P GSCI Dynamic Roll Index
S&P GSCI Enhanced    

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S&P GSCI Equal Weight Select Index
H
S&P Harel Sector Indices    
S&P/Hawkamah ESG Pan Arab Index 
S&P High Yield Dividend Aristocrats 
S&P/HKEx GEM
S&P/HKEx LargeCap
S&P Hong Kong-Listed China BMI

I
S&P/IFCI Asia    
S&P/IFCI Carbon Efficient 
S&P/IFCI EMEA    
S&P/IFCI Europe 
S&P/IFCI LargeMidCap Shariah    
S&P/IFCI Latin America 
S&P India Select    
S&P International Dividend Opportunities
S&P International Preferred Stock Index

J
S&P Japan 500    
S&P Japan 500 Shariah
S&P Japan Eco Index    
S&P Japan Emerging Stock (JES) 100
S&P Japan MidCap 100    
S&P Japan Regional Index - Tokai
S&P Japan SmallCap 250

K
S&P Korea Corporate Group Index Series    
S&P/KRX Asia 100 Index
S&P/KRX Exchanges

L
S&P LargeMidCap Commodity & Resources    
S&P Latin America 40
S&P Latin America 40 Risk Control Indices    
S&P Latin America BMI
S&P Listed Private Equity Index    
S&P Long-Only Merger Arbitrage Index

M
S&P MATRIX Target Risk    
S&P MidCap 400

36

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

S&P MidCap 400 Growth and Value    
S&P MidCap 400 Pure Growth and Pure Value
S&P MILA 40

N
S&P Next Emerging 40    
S&P Next Emerging 40 Risk Control Indices 
S&P Nigeria Select    
S&P Nordic LargeCap Risk Control Indices 
S&P North American Sector Indices    
S&P North American Technology Indices 

O
S&P Overseas China 10

P
S&P Pan Africa    
S&P Pan Africa Shariah
S&P Pan Arab    
S&P Pan Arab Shariah
S&P Pan Asia BMI    
S&P Pan Asia Dividend Aristocrats
S&P Pan Asia Dividend Opportunities    
S&P Pan Asia Ex-Japan & Taiwan BMI 
S&P Pan Asia Select Dividend Opportunities Index    
S&P Pan Asia Shariah

R
S&P RC 2 (Risk Control 2) Index Series    
S&P Russia 10

S
S&P Saudi Arabia    
S&P Select Frontier    
S&P Select Industry Indices
S&P Select Sector Indices
S&P SmallCap 600    
S&P SmallCap 600 Capped Sector Indices
S&P SmallCap 600 Growth and Value    
S&P SmallCap 600 Pure Growth and Pure Value
S&P Southeast Asia 40    
S&P Southeast Asia 40 Risk Control Indices
S&P/StanChart Greater China Index

T

37

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

S&P Target Date    
S&P Target Risk
S&P Total Market Index
S&P/TOPIX 150
S&P/TOPIX 150 Shariah
S&P/TSX 60
S&P/TSX 60 130/30 Strategy Index 
S&P/TSX 60 Capped
S&P/TSX 60 Equal Weight Index 
S&P/TSX 60 Shariah
S&P/TSX 60 VIX
S&P/TSX Canadian Dividend Aristocrats
S&P/TSX Capped Composite 
S&P/TSX Capped Energy Trust
S&P/TSX Capped REIT
S&P/TSX Clean Technology
S&P/TSX Completion
S&P/TSX Composite
S&P/TSX Composite Dividend Index
S&P/TSX Equal Weight Diversifed Banks Index
S&P/TSX Equal Weight Global Base Metals
S&P/TSX Equal Weight Oil & Gas Index
S&P/TSX Equity
S&P/TSX Equity Completion    
S&P/TSX Equity Income Index
S&P/TSX Equity SmallCap
S&P/TSX Global Base Metals 
S&P/TSX Global Gold
S&P/TSX Global Mining 
S&P/TSX Income Trust
S&P/TSX MegaCap
S&P/TSX North American Preferred Stock Index
S&P/TSX Preferred Share
S&P/TSX SmallCap
S&P/TSX Venture 30 Index 
S&P/TSX Venture Composite    
S&P/TSX Venture Select
TOPIX Risk Control Indices

U
S&P U.S. Carbon Efficient    
S&P U.S. Preferred Stock
S&P U.S. Select Plus Custom Index    
S&P U.S. STARS 
S&P United Kingdom    

38

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

S&P US REIT

V
S&P Vietnam 10

W
S&P World Property Shariah

X
S&P X-Alpha EUR Excess Return Strategy Index    
S&P X-Alpha EUR Total Return Strategy Index
S&P X-Alpha USD Excess Return Strategy Index    
S&P X-Alpha USD Total Return Strategy Index

39

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

Appendix 2. CME Disclaimers
1. Limitation of S&P’s Liability

		
	Rule ___.
	S&P/Dow Jones Indices LLC (“S&P”) licenses the Exchange to use various S&P stock indices (“S&P Stock Indices”) in connection with the trading of futures contracts and options on futures contracts based upon such indices.  S&P and its affiliates (including Standard & Poor’s Financial Services LLC) shall have no liability for any damages, claims, losses or expenses caused by any errors or delays in calculating or disseminating the S&P Stock Indices.

2. S&P Disclaimer

		
	Rule       .
	S&P/Dow Jones Indices LLC (“S&P”) and its affiliates (including Standard & Poor’s Financial Services LLC) do not guarantee the accuracy and/or completeness of the S&P Stock Indices or any data included therein.  S&P and its affiliates make no warranty, express or implied, as to the results to be obtained by any person or any entity from the use of the S&P Stock Indices or any data included therein in connection with the trading of futures contracts, options on futures contracts or any other use.  S&P and its affiliates make no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the S&P Stock Indices or any data included therein.  Without limiting any of the foregoing, in no event shall S&P or any of its affiliates have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

3. S&P ETF Contracts Disclaimer

		
	Rule       .
	S&P/Dow Jones Indices LLC (“S&P”) and its affiliates (including Standard & Poor’s Financial Services LLC) do not guarantee the accuracy and/or completeness of the S&P Stock Indices or any data included therein.  S&P and its affiliates make no warranty, express or implied, as to the results to be obtained by any person or any entity from the use of the S&P Index ETFs or any data included therein in connection with the trading of futures contracts, options on futures contracts or any other use.  S&P and its affiliates make no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the S&P Index ETFs or any data included therein.  Without limiting any of the foregoing, in no event shall S&P or any of its affiliates have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

40

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

Appendix 3. License Fees
1. License Fee.  
(a) CME shall pay to S&P quarterly in arrears within forty-five (45) days after the end of each calendar quarter, in accordance with the terms and conditions of this Appendix 3, the applicable percentage of CME’s Equity Index Complex Profits as set forth in Table 1 (below); provided, however, that (i) if CME makes an acquisition pursuant to an M&A Transaction (as defined in Subsection 1(b)) S&P and CME shall negotiate in good faith to adjust such percentages so as to effect as closely as possible the economic value obtained by S&P under this Agreement prior to giving effect to such transaction (which adjustments shall take effect from the closing of any such transaction), and (ii) if CME (A) divests or otherwise transfers all or any portion of its equity complex pursuant to an M&A Transaction or (B) engages in any corporate reorganization of its equity complex (including without limitation any “spin-off” or similar transaction), which in either case has the immediate effect of reducing Equity Index Complex Revenue, S&P and CME shall negotiate in good faith to adjust such percentages so as to effect as closely as possible the economic value obtained by S&P under this Agreement prior to giving effect to such transaction (which adjustments shall take effect from the closing of any such transaction).  With respect to any retroactive adjustments of the applicable percentage as set forth in Table 1 pursuant to the foregoing, amounts payable or reimbursable by one party to the other shall accrue interest at the Prime Rate as of the date of the closing of the relevant transaction, plus *****%.   For the avoidance of doubt, none of the adjustments set forth in this Section 1(a) shall be made for M&A Transactions, corporate reorganizations or other transactions by CME, which do not immediately increase or decrease, Equity Index Complex Revenue.   In the event S&P and CME do not reach agreement on an adjustment to the percentage of Equity Index Complex Profits to be paid to S&P hereunder within six (6) months of the date of closing of the relevant M&A Transaction or corporate reorganization, either S&P or CME shall have the right to use the dispute resolution process set forth in Section 14.10 of the Operating Agreement in order to resolve the matter.

	
		
	Calendar Quarters in 
Calendar Year
	Percentage

	2011
	*****

	2012
	*****

	2013
	*****

	2014
	*****

	2015
	*****

	2016
	*****

	2017
	*****

	2018
	*****

	2019 and all subsequent years
	*****

Table 1

41

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange Commission.

(b) CME’s “Equity Index Complex Profits” for any full calendar quarter during the Term of this Agreement (including the calendar quarter in which the closing of the Transaction occurs) will be equal to ***** determined in accordance with U.S. generally accepted accounting principles on a basis consistently applied by CME (“GAAP”); subject to the provisions of Section 6.2(c) of the Limited Liability Company Agreement; *****.  With respect to the calendar quarter in which this Agreement is terminated, CME shall pay a prorated portion of the fee payable in respect of such calendar quarter.  

2.  Annual Net Revenue Floor.  Notwithstanding Appendix 3, Section (1) and subject to Appendix 3, Section (3), for any calendar year in which CME’s Equity Index Complex Revenue is less than $***** (as adjusted pursuant to the next sentence, the “Annual Net Revenue Floor”), the license fees payable by CME to S&P hereunder shall be ***** and will remain at ***** until such time, if any, that CME’s Equity Index Complex Revenue for a calendar year exceeds the Annual Net Revenue Floor in such year.  Each year beginning in 2012, the Annual Net Revenue Floor will be increased or decreased, as applicable, *****.

3.  Minimum License Fee.  With respect to any calendar year after 2017 in which the license fees paid to S&P hereunder are less than $*****, CME will remit to S&P the difference between such license fees and $***** within ninety (90) days of the end of the calendar year; provided, however, that CME will have no such obligation if S&P has suffered a material loss or erosion of intellectual property protection for the S&P Stock Indices or CME has suffered a material loss of its exclusive rights under this Agreement. 

4.  Audit Rights.  During the Term of this Agreement and for a period of one (1) year after its termination, S&P shall have the right, during normal business hours and upon reasonable notice to CME, to audit on a confidential basis the relevant books and records of CME to determine that the license fees, and other amounts payable hereunder, have been accurately calculated; provided that no more than one such audit may be performed in any Fiscal Year.  The costs of such audit shall be borne by S&P unless it has been underpaid by five percent (5%) or more in a calendar quarter; in such case, the costs of the audit shall be paid by CME.
  

42a50357669ex10-1.htm

Exhibit 10.1

 

 

THIRD AMENDED AND RESTATED

 

UNSECURED MASTER LOAN AGREEMENT

 

DATED AS OF JULY 19, 2012

 

among

 

RAMCO-GERSHENSON PROPERTIES, L.P.,

 

as Borrower,

 

RAMCO-GERSHENSON PROPERTIES TRUST,

 

as a Guarantor,

 

KEYBANK NATIONAL ASSOCIATION,

 

as a Bank,

 

THE OTHER BANKS WHICH ARE A PARTY TO THIS AGREEMENT,

 

THE OTHER BANKS WHICH MAY BECOME PARTIES TO THIS AGREEMENT,

 

KEYBANK NATIONAL ASSOCIATION,

 

as Agent,

 

KEYBANC CAPITAL MARKETS,

 

as Sole Lead Manager and Arranger,

 

JPMORGAN CHASE BANK, N.A.

 

and

 

BANK OF AMERICA, N.A.

 

as Co-Syndication Agents,

 

and

 

DEUTSCHE BANK SECURITIES INC.,

 

and

 

PNC BANK, NATIONAL ASSOCIATION,

 

as Co-Documentation Agents

 

  

  

  

 

THIRD AMENDED AND RESTATED

UNSECURED MASTER LOAN AGREEMENT

 

This THIRD AMENDED AND RESTATED UNSECURED MASTER LOAN AGREEMENT is made as of the 19th day of July, 2012 by and among RAMCO-GERSHENSON PROPERTIES, L.P. (the “Borrower”), a Delaware limited partnership, RAMCO-GERSHENSON PROPERTIES TRUST (the “Trust”), a Maryland real estate investment trust, KEYBANK NATIONAL ASSOCIATION, a national banking association (“KeyBank”), and the other lending institutions that are a party hereto, and the other lending institutions which may become parties hereto pursuant to §18 (the “Banks”), and KEYBANK NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Banks (the “Agent”).

 

RECITALS

 

WHEREAS, the Borrower, the Trust, Agent and the Banks are parties to that certain Second Amended and Restated Unsecured Master Credit Agreement dated as of April 29, 2011 (the “Prior Credit Agreement”); and

 

WHEREAS, the Borrower has requested that the Banks extend the maturity date under the Prior Credit Agreement and make certain other modifications; and

 

WHEREAS, the Borrower, the Guarantor, the Agent and the Banks desire to amend and restate the Prior Credit Agreement in its entirety;

 

NOW, THEREFORE, in consideration of the terms and conditions herein, and of any loans, advances, or extensions of credit heretofore, now or hereafter made to or for the benefit of the Borrower by the Banks, the parties hereto amend and restate the Prior Credit Agreement in its entirety and covenant and agree as follows:

 

	
§1.

	
DEFINITIONS AND RULES OF INTERPRETATION.

 

§1.1.                Definitions.  The following terms shall have the meanings set forth in this §1 or elsewhere in the provisions of this Agreement referred to below:

 

Affiliate.  An Affiliate, as applied to any Person, shall mean any other Person directly or indirectly controlling, controlled by, or under common control with, that Person.  For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means (a) the possession, directly or indirectly, of the power to vote ten percent (10%) or more of the stock, shares, voting trust certificates, beneficial interest, partnership interests, member interests or other interests having voting power for the election of directors of such Person or otherwise to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise, or (b) the ownership of (i) a general partnership interest, (ii) a managing member’s interest in a limited liability company or (iii) a limited partnership interest or preferred stock (or other ownership interest) representing ten percent (10%) or more of the outstanding limited partnership interests, preferred stock or other ownership interests of such Person.

 

  

  

  

 

Agent.  KeyBank National Association, acting as Administrative Agent for the Banks, its successors and assigns.

 

Agent’s Head Office.  The Agent’s head office located at 127 Public Square, Cleveland, Ohio  44114-1306, or at such other location as the Agent may designate from time to time by notice to the Borrower and the Banks.

 

Agent’s Special Counsel.  McKenna Long & Aldridge LLP or such other counsel as may be approved by the Agent.

 

Agreement.  This Third Amended and Restated Unsecured Master Loan Agreement, including the Schedules and Exhibits hereto.

 

Applicable Margin.  (a)  On any date prior to such time as the Agent first receives written notice that Trust has first obtained an Investment Grade Rating from at least two Rating Agencies and that Borrower irrevocably elects to have the Applicable Margin determined based upon the Credit Rating Levels set forth in subpart (b) of this definition, the applicable margin set forth below based on the ratio of the Consolidated Total Liabilities of the Borrower to the Consolidated Total Adjusted Asset Value of the Borrower (expressed as a percentage):

 

	  	 	
Revolving Credit Loans

	 	 	
Term Loans

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Ratio

	 	
Base Rate

Loans

	 	 	
LIBOR Rate

Loans

	 	 	
Base Rate

Loans

	 	 	
LIBOR Rate

Loans

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Pricing 

Level 1

	
Less than 45%

	 	 	0.65	%	 	 	1.65	%	 	 	0.65	%	 	 	1.65	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Pricing 

Level 2

	
Equal to or greater than 45%, but less than 50%

	 	 	0.75	%	 	 	1.75	%	 	 	0.75	%	 	 	1.75	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Pricing 

Level 3

	
Equal to or greater than 50% but less than 55%

	 	 	0.95	%	 	 	1.95	%	 	 	0.95	%	 	 	1.95	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Pricing 

Level 4

	
Equal to or greater than 55%

	 	 	1.25	%	 	 	2.25	%	 	 	1.25	%	 	 	2.25	%

 

The initial Applicable Margin shall be at Pricing Level 2.  The Applicable Margin determined pursuant to this subpart (a) shall be adjusted based upon such ratio, if at all, on the first day of the first month following the delivery by the Borrower to the Agent of the Compliance Certificate at the end of each fiscal quarter.  In the event that Borrower shall fail to deliver to the Agent a quarterly Compliance Certificate on or before the date required by §7.4(e), then without limiting any other rights of the Agent and the Banks under this Agreement, the Applicable Margin determined pursuant to this subpart (a) shall be at Pricing Level 4 until such failure is cured within any applicable cure period.

 

(b)           From and after the time that Agent first receives written notice that Trust has first obtained an Investment Grade Rating from at least two Rating Agencies and that Borrower irrevocably elects to have the Applicable Margin determined based upon the Credit Rating Levels set forth in subpart (b) of this definition, “Applicable Margin” shall mean, as of any date of determination, a percentage per annum determined by reference to the Credit Rating Level as set forth below (provided that any accrued interest payable at the Applicable Margin determined above in subpart (a) of this definition shall be payable as provided in §2.4):

 

  

2

  

 

	  	  	 	
Revolving Credit Loans

	 	 	
Term Loans

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Pricing

Level

	
 

Credit Rating Level

	 	
Base Rate

Loans

	 	 	
LIBOR Rate

Loans

	 	 	
Base Rate

Loans

	 	 	
LIBOR Rate

Loans

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
1

	
Credit Rating Level 1

	 	 	0.00	%	 	 	1.00	%	 	 	0.05	%	 	 	1.05	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
2

	
Credit Rating Level 2

	 	 	0.05	%	 	 	1.05	%	 	 	0.15	%	 	 	1.15	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
3

	
Credit Rating Level 3

	 	 	0.20	%	 	 	1.20	%	 	 	0.35	%	 	 	1.35	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
4

	
Credit Rating Level 4

	 	 	0.45	%	 	 	1.45	%	 	 	0.65	%	 	 	1.65	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
5

	
Credit Rating Level 5

	 	 	0.85	%	 	 	1.85	%	 	 	1.15	%	 	 	2.15	%

The Applicable Margin determined pursuant to this subpart (b) for the Base Rate Loans shall be determined by reference to the Credit Rating Level in effect from time to time, and the Applicable Margin determined pursuant to this subpart (b) for any Interest Period for the LIBOR Rate Loans having such Interest Period shall be determined by reference to the Credit Rating Level in effect on the first day of such Interest Period; provided, however that no change in the Applicable Margin resulting from the application of the Credit Rating Levels or a change in the Credit Rating Level shall be effective until three Business Days after the date on which the Agent receives written notice of the application of the Credit Rating Levels or a change in such Credit Rating Level.  From and after the first time that the Applicable Margin is based on Trust’s Investment Grade Rating, the Applicable Margin shall only be calculated by reference to the pricing levels for the Credit Rating Levels set forth above.

 

Assignment and Acceptance Agreement.  See §18.1.

 

Balance Sheet Date.  March 31, 2012.

 

Banks.  KeyBank, the other Banks a party hereto, and any other Person who becomes an assignee of any rights of a Bank pursuant to §18; and collectively, the Revolving Credit Banks, the Term Loan Banks and the Swing Line Lender.  The Issuing Bank shall be a Bank, as applicable.

 

Base Rate.  The greater of (a) the variable annual rate of interest announced from time to time by Agent at Agent’s Head Office as its “prime rate”, (b) one-half of one percent (0.5%) above the Federal Funds Effective Rate, or (c) the LIBOR Rate determined as of any date of determination for an Interest Period of one month plus one percent (1%) (rounded upwards, if necessary, to the next one-eighth of one percent).  The Base Rate is a reference rate and does not necessarily represent the lowest or best rate being charged to any customer.  Any change in the rate of interest payable hereunder resulting from a change in the Base Rate shall become effective as of the opening of business on the day on which such change in the Base Rate becomes effective, without notice or demand of any kind.

 

  

3

  

 

Base Rate Loans.  Collectively, the Revolving Credit Base Rate Loans and the Term Base Rate Loans.

 

Board.  See the definition of Change of Control.

 

Borrower.  As defined in the preamble hereto.

 

Borrowing Base Availability.  At any date of determination, the Borrowing Base Availability for Eligible Real Estate owned by the Borrower or any Subsidiary Guarantor included in the Unencumbered Borrowing Base Property shall be the amount which is the lesser of (a) sixty percent (60%) of the Unencumbered Pool Value; and (b) the Debt Service Coverage Amount for the Unencumbered Borrowing Base Properties.

 

Borrowing Base Property Certificate.  See §7.4(e).

 

Building.  With respect to each parcel of Real Estate, all of the buildings, structures and improvements now or hereafter located thereon.

 

Business Day.  Any day on which banking institutions located in the same city and state as the Agent’s Head Office and in New York are open for the transaction of banking business and, in the case of LIBOR Rate Loans, which also is a LIBOR Business Day.

 

Capital Expenditure Reserve Amount.  With respect to any Person or property, a reserve for replacements and capital expenditures equal to $.10 per square foot of building space located on all Real Estate owned by such Person, other than Real Estate subject to leases which provide that the tenant is responsible for all building maintenance.

 

Capital Improvement Project.  With respect to any Real Estate now or hereafter owned by the Borrower or any of its Subsidiaries which is utilized principally for shopping centers, capital improvements consisting of rehabilitation, refurbishment, replacement, expansions and improvements (including related amenities) to the existing Buildings on such Real Estate and capital additions, repairs, resurfacing and replacements in the common areas of such Real Estate all of which may be properly capitalized under GAAP.

 

Capitalization Rate.  Seven and three-fourths percent (7.75%).

 

Capitalized Lease.  A lease under which a Person is the lessee or obligor, the discounted future rental payment obligations under which are required to be capitalized on the balance sheet of the lessee or obligor in accordance with GAAP.

 

Cash Equivalents.  As of any date, (i) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof having maturities of not more than one year from such date, (ii) time deposits and certificates of deposits having maturities of not more than one year from such date and issued by any domestic commercial bank having, (A) senior long term unsecured debt rated at least A or the equivalent thereof by S&P or A2 or the equivalent thereof by Moody’s and (B) capital and surplus in excess of $100,000,000.00; (iii) commercial paper rated at least A-1 or the equivalent thereof by S&P or P-1 or the equivalent thereof by Moody’s and in either case maturing within one hundred twenty (120) days from such date, and (iv) shares of any money market mutual fund rated at least AAA or the equivalent thereof by S&P or at least Aaa or the equivalent thereof by Moody’s.

 

  

4

  

 

CERCLA.  See §6.18.

 

Change of Control.  The occurrence of any one of the following events:

 

(a)           during any twelve month period on or after the date of this Agreement, individuals who at the beginning of such period constituted the Board of Directors or Trustees of the Trust (the “Board”) (together with any new directors whose election by the Board or whose nomination for election by the shareholders of the Trust was approved by a vote of at least a majority of the members of the Board then in office who either were members of the Board at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the members of the Board then in office;

 

(b)           any Person or group (as that term is understood under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations thereunder) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of a percentage (based on voting power, in the event different classes of stock shall have different voting powers) of the voting stock of the Trust equal to at least thirty percent (30%);

 

(c)           the Borrower or Trust consolidates with, is acquired by, or merges into or with any Person (other than a merger permitted by Section 8.4); or

 

(d)           the Borrower fails to own, free of any lien, encumbrance or other adverse claim, at least one hundred percent (100%) of the economic interest in the Voting Interest of each Subsidiary Guarantor.

 

Closing Date.  The first date on which all of the conditions set forth in §10 and §11 have been satisfied.

 

Code.  The Internal Revenue Code of 1986, as amended, and all regulations and formal guidance issued thereunder.

 

Co-Documentation Agents.  Deutsche Bank Securities Inc. and PNC Bank, National Association.

 

Collateral Account.  A special deposit account established by the Agent pursuant to §12.6 and under its sole dominion and control.

 

Commitment.  With respect to each Bank, the aggregate of (a) the Revolving Credit Commitment of such Bank and (b) the Term Loan Commitment of such Bank.

 

  

5

  

 

Commitment Percentage.  With respect to each Bank, the percentage set forth on Schedule 1.1 hereto as such Bank’s percentage of the aggregate Commitments of all of the Banks, as the same may be changed from time to time in accordance with the terms of this Agreement.

 

Compliance Certificate.  See §7.4(e).

 

Consolidated or combined.  With reference to any term defined herein, that term as applied to the accounts of a Person and its Subsidiaries, consolidated or combined in accordance with GAAP.

 

Consolidated Operating Cash Flow.  With respect to any period of a Person, an amount equal to the Operating Cash Flow of such Person and its Subsidiaries for such period consolidated in accordance with GAAP.

 

Consolidated Tangible Net Worth.  The amount by which Consolidated Total Adjusted Asset Value exceeds Consolidated Total Liabilities, and less the sum of:

 

(a)           the total book value of all assets of a Person and its Subsidiaries properly classified as intangible assets under GAAP, including such items as good will, the purchase price of acquired assets in excess of the fair market value thereof, trademarks, trade names, service marks, brand names, copyrights, patents and licenses, and rights with respect to the foregoing; and

 

(b)           all amounts representing any write-up in the book value of any assets of such Person or its Subsidiaries resulting from a revaluation thereof subsequent to the Balance Sheet Date; and

 

(c)           all amounts representing minority interests as of such date which are applicable to third parties in Investments of the Borrower.

 

Consolidated Total Adjusted Asset Value.  With respect to any Person, the sum of all assets of such Person and its Subsidiaries determined on a Consolidated basis in accordance with GAAP, provided that all Real Estate that is improved and not Under Development shall be valued at an amount equal to (A) the Operating Cash Flow of such Person and its Subsidiaries and Unconsolidated Affiliates described in §8.3(i) from such Real Estate for the period covered by the four previous consecutive fiscal quarters (treated as a single accounting period) divided by (B) the Capitalization Rate, provided that (i) prior to such time as the Borrower or any of its Subsidiaries or such Unconsolidated Affiliates has owned and operated any parcel of Real Estate for four full fiscal quarters, such Real Estate shall be valued at acquisition cost determined in accordance with GAAP, and provided further that (ii)(A) with respect to any Redevelopment Property that has been valued at cost as permitted below and has recommenced operations for less than four full fiscal quarters, the Operating Cash Flow for such Redevelopment Property for the number of full fiscal quarters which the Borrower or its Subsidiary or such Unconsolidated Affiliate has recommenced operations as annualized shall be utilized, and (B) the Operating Cash Flow for any Redevelopment Property that has recommenced operations without a full quarter of performance shall be annualized in such manner as the Agent shall approve, such approval not to be unreasonably withheld, and (iii) to the extent that the capitalized Operating Cash Flow with respect to any parcel of Real Estate owned by an Unconsolidated Affiliate of such Person is included in the calculation of Consolidated Total Adjusted Asset Value for such Person, such Person’s interest in the Unconsolidated Affiliate shall not be included in the calculation of Consolidated Total Adjusted Asset Value for such Person.  Real Estate that is Under Development and undeveloped Land shall be valued at its capitalized cost in accordance with GAAP.  Notwithstanding the foregoing, Borrower may elect to value a Redevelopment Property at cost as determined in accordance with GAAP, as set forth in the first sentence of this definition, for a period of up to twenty-four (24) months which twenty-four (24) month period shall commence upon the date which Agent receives written notice from Borrower of such election (including any notice provided under the Prior Credit Agreement).  The assets of the Borrower and its Subsidiaries on the consolidated financial statements of the Borrower and its Subsidiaries shall be adjusted to reflect the Borrower’s allocable share of such asset (including Borrower’s interest in any Unconsolidated Affiliate whose asset value is determined by application of the capitalization rate above), for the relevant period or as of the date of determination, taking into account (a) the relative proportion of each such item derived from assets directly owned by the Borrower and from assets owned by its respective Subsidiaries and Unconsolidated Affiliates, and (b) the Borrower’s respective ownership interest in its Subsidiaries and Unconsolidated Affiliates.

 

  

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Consolidated Total Liabilities.  All liabilities of a Person and its Subsidiaries determined on a Consolidated basis in accordance with GAAP and all Indebtedness of such Person and its Subsidiaries, whether or not so classified, including any liabilities arising in connection with sale and leaseback transactions, and shall include such Person’s pro rata share of the foregoing items of its Unconsolidated Affiliates.  Consolidated Total Liabilities shall not include Trust Preferred Equity or Subordinated Debt.  Amounts undrawn under this Agreement shall not be included in Indebtedness for purposes of this definition.  Notwithstanding anything to the contrary contained herein, (a) Indebtedness (i) of Borrower and its Subsidiaries consisting of environmental indemnities and guarantees with respect to customary exceptions to exculpatory language with respect to Non-recourse Indebtedness and (ii) of Borrower with respect to the TIF Guaranty shall not be included in the calculation of Consolidated Total Liabilities of Borrower and its Subsidiaries unless a claim shall have been made against Borrower or a Subsidiary of Borrower on account of any such guaranty or indemnity, and (b) Indebtedness of Borrower, the Trust and their Subsidiaries under completion guarantees shall equal the remaining costs to complete the applicable construction project in excess of construction loan or mezzanine loan proceeds available therefor and any equity deposited or invested for the payment of such costs.

 

Contribution Agreement.  That certain Contribution Agreement dated of even date herewith among the Borrower, the Trust and the Subsidiary Guarantors.

 

Conversion Request.  A notice given by the Borrower to the Agent of its election to convert or continue a Loan in accordance with §4.1.

 

Co-Syndication Agents.  JPMorgan Chase Bank, N.A. and Bank of America, N.A.

 

Credit Rating.  As of any date of determination, the higher of the credit ratings (or their equivalents) then assigned to Trust’s long-term senior unsecured non-credit enhanced debt by any of the Rating Agencies.  A credit rating of BBB- from S&P or Fitch is equivalent to a credit rating of Baa3 from Moody’s and vice versa.  A credit rating of BBB from S&P or Fitch is equivalent to a credit rating of Baa2 from Moody’s and vice versa.  It is the intention of the parties that if Trust shall only obtain a credit rating from two of the Rating Agencies without seeking a credit rating from the third Rating Agency, the Borrower shall be entitled to the benefit of the Credit Rating Level for such credit rating.  If Trust shall have obtained a credit rating from at least two of the Rating Agencies, the highest of the obtained ratings shall control, provided that the next highest rating is only one level below that of the highest rating.  If the next highest rating is more than one level below that of the highest credit rating, the operative rating would be deemed to be one rating level higher than the lower of the two ratings.  In the event that Trust shall have obtained a credit rating from at least two of the Rating Agencies and shall thereafter lose any of such ratings (whether as a result of a withdrawal, suspension, election to not obtain a rating, or otherwise) from the Rating Agencies such that Trust does not have a credit rating from at least two Rating Agencies, the Trust shall be deemed for the purposes hereof not to have a credit rating.  If at any time any of the Rating Agencies shall no longer perform the functions of a securities rating agency, then the Borrower and the Agent shall promptly negotiate in good faith to agree upon a substitute rating agency or agencies (and to correlate the system of ratings of each substitute rating agency with that of the rating agency being replaced), and pending such amendment, the Credit Rating of the other of the Rating Agencies, if one has been provided, shall continue to apply.

 

  

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Credit Rating Level.  One of the following five pricing levels, as applicable, and provided, further, that, from and after the time that Agent receives written notice that Trust has first obtained an Investment Grade Rating from at least two Rating Agencies, during any period that the Trust has no Credit Rating Level, Credit Rating Level 5 shall be the applicable Credit Rating Level:

 

“Credit Rating Level 1” means the Credit Rating Level which would be applicable for so long as the Credit Rating is greater than or equal to A- by S&P or Fitch, or A3 by Moody’s;

 

“Credit Rating Level 2” means the Credit Rating Level which would be applicable for so long as the Credit Rating is greater than or equal to BBB+ by S&P or Fitch, or Baa1 by Moody’s and Credit Rating Level 1 is not applicable;

 

“Credit Rating Level 3” means the Credit Rating Level which would be applicable for so long as the Credit Rating is greater than or equal to BBB by S&P or Fitch, or Baa2 by Moody’s and Credit Rating Levels 1 and 2 are not applicable;

 

“Credit Rating Level 4” means the Credit Rating Level which would be applicable for so long as the Credit Rating is greater than or equal to BBB- by S&P or Fitch, or Baa3 by Moody’s and Credit Rating Levels 1, 2 and 3 are not applicable; and

 

“Credit Rating Level 5” means the Credit Rating Level which would be applicable for so long as the Credit Rating is less than BBB- by S&P or Fitch, or Baa3 by Moody’s or there is no Credit Rating.

 

  

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Debt Offering.  The issuance and sale by the Borrower or any Guarantor of any debt securities of the Borrower or such Guarantor.

 

Debt Service.  For any period, the sum of all interest, including capitalized interest not paid in cash, bond related expenses, and mandatory principal/sinking fund payments due and payable during such period excluding any balloon payments due upon maturity of any Indebtedness.  Any of the foregoing payable with respect to Subordinated Debt shall be included in the calculation of Debt Service.

 

Debt Service Coverage Amount.  At any time determined by the Agent, an amount equal to the maximum principal amount of all Unsecured Indebtedness of the Trust, the Borrower and their Subsidiaries (including, without limitation, the Outstanding Revolving Credit Loans, Outstanding Swing Line Loans, Outstanding Term Loans and Letter of Credit Liabilities) which, when bearing interest at a rate per annum equal to the greater of (a) the then-current annual yield on seven (7) year obligations issued by the United States Treasury most recently prior to the date of determination plus 2.50% payable based on a 30 year mortgage style amortization schedule (expressed as a mortgage constant percentage) and (b) 7.0%, would be payable by the monthly principal and interest payment amount resulting from dividing (a) the Operating Cash Flow from the Unencumbered Borrowing Base Properties for the preceding four fiscal quarters divided by 1.5 by (b) 12.  With respect to any Unencumbered Borrowing Base Property which has not been owned by Borrower or a Subsidiary thereof for four (4) full fiscal quarters, then for the purposes of determining the Debt Service Coverage Amount, the historic Operating Cash Flow from such Unencumbered Borrowing Base Property shall be used, or if such information is not available, then the Operating Cash Flow shall be the Borrower’s pro forma underwritten Operating Cash Flow for such Unencumbered Borrowing Base Property for the next succeeding four (4) fiscal quarters as reasonably approved by Agent (provided, that the pro forma underwritten Operating Cash Flow for each of such four (4) fiscal quarters shall be replaced by the actual Operating Cash Flow for each fiscal quarter thereafter until such time as there are four (4) full fiscal quarters of operating results for the Borrower, and the pro forma underwritten Operating Cash Flow approved by Agent shall continue to be used for the fiscal quarters not yet occurred).  The determination of the Debt Service Coverage Amount and the components thereof by the Agent shall, so long as the same shall be determined in good faith, be conclusive and binding absent manifest error.

 

Default.  See §12.1.

 

  

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Defaulting Bank.  Any Bank that, as reasonably determined by the Agent, (a) has failed to perform any of its funding obligations hereunder, including in respect of its Loans or participations in respect of Letters of Credit or Swing Line Loans, within two (2) Business Days of the date required to be funded by it hereunder and such failure is continuing, unless such failure arises out of a good faith dispute between such Bank and either the Borrower or the Agent as to whether one or more conditions precedent to funding has been satisfied (each of which conditions precedent together with any applicable default shall be specifically identified in writing by such Bank), (b) has notified the Borrower, the Agent or any Bank that it does not intend to comply with its funding obligations hereunder unless with respect to this clause such failure is subject to a good faith dispute as to whether one or more conditions precedent to funding has been satisfied (each of which conditions precedent together with any applicable default shall be specifically identified in writing by such Bank), (c) has failed, within two (2) Business Days after request by the Agent, to confirm in a manner reasonably satisfactory to the Agent that it will comply with its funding obligations; provided that, notwithstanding the provisions of §2.12, such Bank shall cease to be a Defaulting Bank upon the Agent’s receipt of confirmation that such Defaulting Bank will comply with its funding obligations, or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any bankruptcy, insolvency, reorganization, liquidation, conservatorship, assignment for the benefit of creditors, moratorium, receivership, rearrangement or similar debtor relief law of the United States or other applicable jurisdictions from time to time in effect, including any law for the appointment of the Federal Deposit Insurance Corporation or any other state or federal regulatory authority as receiver, conservator, trustee, administrator or any similar capacity, (ii) had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such capacity, charged with reorganization or liquidation of its business or a custodian appointed for it, or (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any such proceeding or appointment; provided that a Bank shall not be a Defaulting Bank solely by virtue of the ownership or acquisition of any equity interest in that Bank or any direct or indirect parent company thereof by a governmental authority (including any agency, instrumentality, regulatory body, central bank or other authority) so long as such ownership interest does not result in or provide such Bank with immunity from the jurisdiction of courts of the United States or from the enforcement of judgments or writs of attachment of its assets or permit such Bank (or such governmental authority or instrumentality) to reject, repudiate, disavow, or disaffirm any contracts or agreements made with such Person).  Any determination by the Agent that a Bank is a Defaulting Bank under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Bank shall be deemed to be a Defaulting Bank (subject to §2.12(g)) upon delivery of written notice of such determination to the Borrower and each Bank.

 

Derivatives Contract.  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.  Not in limitation of the foregoing, the term “Derivatives Contract” includes 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 of similar type, including any such obligations or liabilities under any such master agreement.

 

Directions.  See §14.12.

 

  

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Distribution.  With respect to any Person, the declaration or payment of any cash, cash flow, dividend or distribution on or in respect of any shares of any class of capital stock, partnership interest, membership interest or other beneficial interest of such Person other than that portion of any dividends or distributions payable in equity securities of such Person; the purchase, redemption, exchange or other retirement of any shares of any class of capital stock, partnership interest, membership interest or other beneficial interest of such Person, directly or indirectly through a Subsidiary of such Person or otherwise; the return of capital by such Person to its shareholders, partners, members or other owners as such; or any other distribution on or in respect of any shares of any class of capital stock or other beneficial interest of such Person.

 

Dollars or $. Dollars in lawful currency of the United States of America.

 

Domestic Lending Office.  Initially, the office of each Bank designated as such in Schedule 1.1 hereto; thereafter, such other office of such Bank, if any, located within the United States that will be making or maintaining Base Rate Loans.

 

Drawdown Date.  The date on which any Loan is made or is to be made, and the date on which any Loan which is made prior to the Revolving Credit Maturity Date or Term Loan Maturity Date, as applicable, is converted or combined in accordance with §4.1.

 

Eligible Real Estate.  Real Estate which meets the conditions set forth in § 7.19(a).

 

Employee Benefit Plan.  Any employee benefit plan within the meaning of §3(3) of ERISA maintained or contributed to by the Borrower, a Guarantor or any ERISA Affiliate, other than a Multiemployer Plan.

 

Environmental Laws.  See §6.18(a).

 

Equity Offering.  The issuance and sale by the Borrower or any Guarantor of any equity securities of the Borrower or such Guarantor.

 

ERISA.  The Employee Retirement Income Security Act of 1974, as amended and in effect from time to time, and all regulations and formal guidance issued thereunder.

 

ERISA Affiliate.  Any Person which is treated as a single employer with the Borrower or any Guarantor under §414 of the Code or §4001 of ERISA, or any predecessor entities of any of them.

 

ERISA Reportable Event.  A reportable event with respect to a Guaranteed Pension Plan within the meaning of §4043 of ERISA as to which the requirement of notice has not been waived or any other event with respect to which Borrower or an ERISA Affiliate could have liability under ERISA §§4062(e) or 4063.

 

Event of Default.  See §12.1.

 

Excluded FATCA Tax.  Any tax, assessment or other governmental charge imposed on a Bank under FATCA, to the extent applicable to the transactions contemplated by this Agreement, that would not have been imposed but for a failure by a Bank (or any financial institution through which any payment is made to such Bank) to comply with the requirements of FATCA.

 

  

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Existing Letters of Credit.  The Letters of Credit issued by Issuing Bank and described on Schedule 2.9 hereto.

 

FATCA.  Sections 1471 through 1474 of the Internal Revenue Code.

 

Federal Funds Effective Rate.  For any day, the rate per annum (rounded to the nearest one hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of Cleveland on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds Effective Rate”, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by the Agent from three (3) Federal funds brokers of recognized standing selected by the Agent.

 

Fitch.  Fitch, Inc., and any successor thereto.

 

Fixed Charges.  With respect to the Trust and its Subsidiaries for any fiscal period, an amount equal to the sum of (a) the Debt Service of the Trust and its Subsidiaries, plus (b) the Preferred Distributions of the Trust and its Subsidiaries, all determined on a consolidated basis in accordance with GAAP.

 

Fronting Exposure.  At any time there is a Defaulting Bank, (a) with respect to the Issuing Bank, such Defaulting Bank’s Revolving Credit Commitment Percentage of the outstanding Letter of Credit Liabilities other than Letter of Credit Liabilities as to which such Defaulting Bank’s participation obligation has been reallocated to other Revolving Credit Banks or cash collateral or other credit support acceptable to the Issuing Bank shall have been provided in accordance with the terms hereof and (b) with respect to the Swing Line Lender, such Defaulting Bank’s Revolving Credit Commitment Percentage of Swing Line Loans other than Swing Line Loans as to which such Defaulting Bank’s participation obligation has been reallocated to other Revolving Credit Banks, repaid by the Borrower or for which cash collateral or other credit support acceptable to the Swing Line Lender shall have been provided in accordance with the terms hereof.

 

Funds from Operations.  With respect to any Person for any fiscal period, the Net Income (or Deficit) of such Person computed in accordance with GAAP, excluding losses from sales of property and impairment charges, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.  Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.

 

GAAP.  Principles that are (a) consistent with the principles promulgated or adopted by the Financial Accounting Standards Board and its predecessors, as in effect from time to time and (b) consistently applied with past financial statements of the Person adopting the same principles; provided that a certified public accountant would, insofar as the use of such accounting principles is pertinent, be in a position to deliver an unqualified opinion (other than a qualification regarding changes in GAAP) as to financial statements in which such principles have been properly applied.  Notwithstanding the foregoing, for the purposes of the financial calculations hereunder, any amount otherwise included therein from a mark-up or mark-down of a derivative product of a Person shall be excluded.

 

  

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Government Acts.  See §2.9(j).

 

Ground Lease.  A ground lease which is not subordinate to any mortgage, deed of trust or security deed as to which no default or event of default has occurred and containing the following terms and conditions:  (a) a remaining term (exclusive of any unexercised extension options) of forty (40) years or more from the Closing Date; (b) the right of the lessee to mortgage and encumber its interest in the leased property without the consent of the lessor; (c) the obligation of the lessor to give the holder of any mortgage lien on such leased property written notice of any defaults on the part of the lessee and agreement of such lessor that such lease will not be terminated until such holder has had a reasonable opportunity to cure or complete foreclosure, and fails to do so; (d) reasonable transferability of the lessee’s interest under such lease, including the ability to sublease; and (e) such other rights customarily required by mortgagees making a loan secured by the interest of the holder of the leasehold estate demised pursuant to a ground lease.

 

Guaranteed Pension Plan.  Any employee pension benefit plan within the meaning of §3(2) of ERISA maintained or contributed to by the Borrower, any Guarantor or any ERISA Affiliate the benefits of which are guaranteed on termination in full or in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer Plan.

 

Guarantors.  Collectively, the Trust and each Subsidiary Guarantor, and individually, any one such Guarantor.

 

Guaranty.  The Third Amended and Restated Unconditional Guaranty of Payment and Performance dated of even date herewith made by the Guarantors in favor of the Agent and the Banks, as the same may be modified or amended, such Guaranty to be in form and substance satisfactory to the Agent.

 

Hazardous Substances.  See §6.18(b).

 

Indebtedness.  All obligations, contingent and otherwise, that in accordance with GAAP should be classified upon the obligor’s balance sheet as liabilities, or to which reference should be made by footnotes thereto, but without any double counting, including in any event and whether or not so classified: (a) all debt and similar monetary obligations, whether direct or indirect (including, without limitation, any obligations evidenced by bonds, debentures, notes or similar debt instruments); (b) all liabilities secured by any mortgage, pledge, security interest, lien, charge or other encumbrance existing on property owned or acquired subject thereto, whether or not the liability secured thereby shall have been assumed; (c) all guarantees, endorsements and other contingent obligations whether direct or indirect in respect of indebtedness of others, including any obligation to supply funds to or in any manner to invest directly or indirectly in a Person, to purchase indebtedness, or to assure the owner of indebtedness against loss through an agreement to purchase goods, supplies or services for the purpose of enabling the debtor to make payment of the indebtedness held by such owner or otherwise; (d) any obligation as a lessee or obligor under a Capitalized Lease; (e) all subordinated debt, including, without limitation, Subordinated Debt (but excluding Trust Preferred Equity); (f) all obligations to purchase under agreements to acquire (but excluding agreements which provide that the seller’s remedies thereunder are limited to market liquidated damages in the event the purchaser defaults thereunder), or otherwise to contribute money with respect to, properties under “development” within the meaning of §8.9; and (g) all obligations, contingent or deferred or otherwise, of any Person, including, without limitation, any such obligations as an account party under acceptance, letter of credit or similar facilities including, without limitation, obligations to reimburse the issuer in respect of a letter of credit except for contingent obligations (but excluding any guarantees or similar obligations) that are not material and are incurred in the ordinary course of business in connection with the acquisition or obtaining commitments for financing of Real Estate.

 

  

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Interest Payment Date.  As to each Base Rate Loan, the first day of each calendar month during the term of such Base Rate Loan and as to each LIBOR Rate Loan, the first day of each calendar month during the term of such LIBOR Rate Loan and the last day of the Interest Period relating thereto.

 

Interest Period.  With respect to each LIBOR Rate Loan (a) initially, the period commencing on the Drawdown Date of such Loan and ending one, two, three or six months (or, with the consent of the Banks, a period of less than one (1) month) thereafter and (b) thereafter, each period commencing on the day following the last day of the next preceding Interest Period applicable to such Loan and ending on the last day of one of the periods set forth above, as selected by the Borrower in a Conversion Request; provided that all of the foregoing provisions relating to Interest Periods are subject to the following:

 

(i)           if any Interest Period with respect to a LIBOR Rate Loan would otherwise end on a day that is not a LIBOR Business Day, that Interest Period shall end and the next Interest Period shall commence on the next preceding or succeeding LIBOR Business Day as determined conclusively by the Agent in accordance with the then current bank practice in the London Interbank Market;

 

(ii)           if the Borrower shall fail to give notice as provided in §4.1, the Borrower shall be deemed to have requested a conversion of the affected LIBOR Rate Loan to a Base Rate Loan on the last day of the then current Interest Period with respect thereto; and

 

(iii)           no Interest Period relating to any LIBOR Rate Loan shall extend beyond the Revolving Credit Maturity Date or Term Loan Maturity Date, as applicable.

 

Interest Rate Contracts.  Interest rate swap, collar, cap or similar agreements providing interest rate protection.

 

Investment Grade Rating.  A credit rating for long-term senior unsecured non-credit enhanced debt of BBB- or better by S&P or Fitch, or Baa3 or better by Moody’s.

 

  

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Investments.  With respect to any Person, all shares of capital stock, evidences of Indebtedness and other securities issued by any other Person, all loans, advances, or extensions of credit to, or contributions to the capital of, any other Person, all purchases of the securities or business or integral part of the business of any other Person and commitments and options to make such purchases, all interests in real property, and all other investments; provided, however, that the term “Investment” shall not include (i) equipment, inventory and other tangible personal property acquired in the ordinary course of business, or (ii) current trade and customer accounts receivable for services rendered in the ordinary course of business and payable in accordance with customary trade terms.  In determining the aggregate amount of Investments outstanding at any particular time: (a) the amount of any Investment represented as a guaranty shall be taken at not less than the principal amount of the obligations guaranteed and still outstanding; (b) there shall be included as an Investment all interest accrued with respect to Indebtedness constituting an Investment unless and until such interest is paid; (c) there shall be deducted in respect of each such Investment any amount received as a return of capital (but only by repurchase, redemption, retirement, repayment, liquidating dividend or liquidating distribution); (d) there shall not be deducted in respect of any Investment any amounts received as earnings on such Investment, whether as dividends, interest or otherwise, except that accrued interest included as provided in the foregoing clause (b) may be deducted when paid; and (e) there shall not be deducted from the aggregate amount of Investments any decrease in the value thereof.

 

Issuing Bank.  KeyBank in its capacity as the Bank issuing Letters of Credit, or any successor issuing bank hereunder.

 

Joinder Agreement.  The joinder agreement with respect to the Guaranty and the Contribution Agreement to be executed and delivered pursuant to §5.5 by any additional Guarantor, substantially in the form of Exhibit D hereto.

 

KeyBank.  As defined in the preamble hereto.

 

Leases.  Leases, licenses and agreements whether written or oral, relating to the use or occupation of space in or on any Building or on any Real Estate by persons other than the Borrower.

 

Letter of Credit.  Any standby letter of credit issued at the request of the Borrower and  for the account of the Borrower in accordance with §2.9.

 

Letter of Credit Application.  See §2.9(b).

 

Letter of Credit Liabilities.  At any time and in respect of any Letter of Credit, the sum of (a) the maximum undrawn face amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all drawings made under such Letter of Credit which have not been repaid (including repayment by a Revolving Credit Loan).  For purposes of this Agreement, a Revolving Credit Bank (other than the Bank acting as the Issuing Bank) shall be deemed to hold a Letter of Credit Liability in an amount equal to its participation interest in the related Letter of Credit under §2.9, and the Bank acting as the Issuing Bank shall be deemed to hold a Letter of Credit Liability in an amount equal to its retained interest in the related Letter of Credit after giving effect to the acquisition by the Revolving Credit Banks other than the Bank acting as the Issuing Bank of their participation interests under such Section.

 

  

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Letter of Credit Sublimit.  An amount equal to $25,000,000.00, as such amount may increase as provided in §2.9 or may reduce as provided in §2.7.

 

LIBOR Business Day.  Any day on which commercial banks are open for international business (including dealings in Dollar deposits) in London.

 

LIBOR Lending Office.  Initially, the office of each Bank designated as such in Schedule 1.1 hereto; thereafter, such other office of such Bank, if any, that shall be making or maintaining LIBOR Rate Loans.

 

LIBOR Rate.  For any LIBOR Rate Loan for any Interest Period, the average rate (rounded to the nearest 1/100th) as shown in Reuters Screen LIBOR 01 Page at which deposits in U.S. dollars are offered by first class banks in the London Interbank Market at approximately 11:00 a.m. (London time) on the day that is two (2) LIBOR Business Days prior to the first day of such Interest Period with a maturity approximately equal to such Interest Period and in an amount approximately equal to the amount to which such Interest Period relates, adjusted for reserves and taxes if required by future regulations.  If such service no longer reports such rate or Agent determines in good faith that the rate so reported no longer accurately reflects the rate available to Agent in the London Interbank Market, Agent may select a replacement index.  For any period during which a Reserve Percentage shall apply, the LIBOR Rate with respect to LIBOR Rate Loans shall be equal to the amount determined above divided by an amount equal to 1 minus the Reserve Percentage.

 

LIBOR Rate Loans.  Collectively, the Revolving Credit LIBOR Rate Loans and the Term LIBOR Rate Loans.

 

Lien.  See §8.2.

 

Loan Documents.  This Agreement, the Notes (if any), the Letters of Credit, the Letter of Credit Applications, the Guaranty and all other documents, instruments or agreements now or  hereafter executed or delivered by or on behalf of the Borrower or the Guarantors in connection with the Loans.

 

Loan Request.  See §2.5.

 

Loans.  The Revolving Credit Loans and the Term Loans.  Swing Line Loans shall constitute “Revolving Credit Loans” for all purposes under this Agreement (provided that only the Swing Line Lender shall be obligated to make a Swing Line Loan), but shall not be considered the utilization of a Revolving Credit Bank’s Revolving Credit Commitment (except to the extent of such Revolving Credit Bank’s participation in Swing Line Loans).

 

Majority Banks.  As of any date, any Bank or collection of Banks whose aggregate Commitment Percentage is more than fifty percent (50%); provided, that, in determining said percentage at any given time, all then existing Defaulting Banks will be disregarded and excluded and the Commitment Percentages of the Banks shall be redetermined for voting purposes only, to exclude the Commitment Percentages of such Defaulting Banks.

 

  

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Majority Revolving Credit Banks.  As of any date, any Revolving Credit Bank or collection of Revolving Credit Banks whose aggregate Revolving Credit Commitment Percentage is greater than fifty percent (50%); provided that in determining said percentage at any given time, all the existing Revolving Credit Banks that are Defaulting Banks will be disregarded and excluded and the Revolving Credit Commitment Percentages of the Revolving Credit Banks shall be redetermined for voting purposes only to exclude the Revolving Credit Commitment Percentages of such Defaulting Banks.

 

Majority Term Loan Banks.  As of any date, any Term Loan Bank or collection of Term Loan Banks whose aggregate Term Loan Commitment Percentage is greater than fifty percent (50%); provided that in determining said percentage at any given time, all the existing Term Loan Banks that are Defaulting Banks will be disregarded and excluded and the Term Loan Commitment Percentages of the Term Loan Banks shall be redetermined for voting purposes only to exclude the Term Loan Commitment Percentages of such Defaulting Banks.

 

Moody’s.  Moody’s Investors Services, Inc., and any successor thereto.

 

Multiemployer Plan.  Any multiemployer plan within the meaning of §3(37) or 4001(a)(3) of ERISA or §414(f) of the Code maintained or contributed to by the Borrower, a Guarantor or any ERISA Affiliate.

 

Net Income (or Deficit).  With respect to any Person (or any asset of any Person) for any fiscal period, the net income (or deficit) of such Person (or attributable to such asset), after deduction of all expenses, taxes and other proper charges, determined in accordance with GAAP.

 

Net Offering Proceeds.  The gross cash proceeds received by the Borrower or any Guarantor as a result of a Debt Offering or an Equity Offering less the customary and reasonable costs, fees, expenses, underwriting commissions and discounts incurred by the Borrower or such Guarantor in connection therewith.

 

Net Rentable Area.  With respect to any Real Estate, the floor area of any buildings, structures or improvements available (or to be available upon completion) for leasing to tenants determined in accordance with the Rent Roll for such Real Estate, the manner of such determination to be consistent for all Real Estate unless otherwise approved by the Agent.

 

Non-Consenting Bank.  See §18.9.

 

Non-Defaulting Bank.  At any time, any Bank that is not a Defaulting Bank at such time.

 

Non-recourse Indebtedness.  Indebtedness of a Person which is secured solely by one or more parcels of Real Estate and related personal property and is not a general obligation of such Person, the holder of such Indebtedness having recourse solely to the parcels of Real Estate securing such Indebtedness, the Building and any leases thereon and the rents and profits thereof.

 

Notes.  Collectively, the Revolving Credit Notes, Term Loan Notes, and the Swing Line Note, if any.

 

Notice.  See §19.

 

  

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Obligations.  All indebtedness, obligations and liabilities of the Borrower and the Guarantors to any of the Banks and the Agent, individually or collectively, under this Agreement or any of the other Loan Documents or in respect of any of the Loans, the Letters of Credit or the Notes, or other instruments at any time evidencing any of the foregoing, whether existing on the date of this Agreement or arising or incurred hereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise.

 

OFAC.  Office of Foreign Asset Control of the Department of the Treasury of the United States of America.

 

Operating Cash Flow.  With respect to any Person (or any asset of any Person) for any period, for the four (4) most recently completed consecutive fiscal quarters of such Person an amount equal to the sum of (a) the Net Income of such Person (or attributable to such asset) for such period (excluding from Net Income any base rents from tenants leasing 10,000 square feet or more (1) that are subject to any bankruptcy proceeding and that have not affirmed or assumed their respective lease or other occupancy agreement or (2) as to which a payment default has occurred under the applicable Lease for sixty (60) days or more beyond any applicable grace and cure period) plus (b) depreciation and amortization, interest expense, and any extraordinary or nonrecurring losses deducted in calculating such Net Income, minus (c) any extraordinary or nonrecurring gains included in calculating such Net Income, minus (d) the Capital Expenditure Reserve Amount, minus (e) to the extent not already deducted in calculating Net Income, a management fee of 3% of minimum rents attributable to any Real Estate of such Person, all as determined in accordance with GAAP, minus (f) any lease termination payments not received in the ordinary course of business.  Payments from Borrower or its Affiliates under leases shall be excluded from Operating Cash Flow.

 

Outstanding.  With respect to the Loans, the aggregate unpaid principal thereof as of any date of determination.  With respect to Letters of Credit, the aggregate undrawn face amount of issued Letters of Credit

 

Patriot Act.  The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as the same may be amended from time to time, and corresponding provisions of future laws.

 

PBGC.  The Pension Benefit Guaranty Corporation created by §4002 of ERISA and any successor entity or entities having similar responsibilities.

 

Permitted Liens.  Liens, security interests and other encumbrances permitted by §8.2.

 

Person.  Any individual, corporation, partnership, limited liability company, trust, unincorporated association, business, or other legal entity, and any government or any governmental agency or political subdivision thereof.

 

Preferred Distributions.  For any period, the amount of any and all Distributions (but excluding any repurchase of Preferred Equity) paid, declared but not yet paid or otherwise due and payable to the holders of Preferred Equity.

 

  

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Preferred Equity.  Any form of preferred stock or partnership interest (whether perpetual, convertible or otherwise) or other ownership or beneficial interest in the Trust or any Subsidiary of the Trust (including any Trust Preferred Equity) that entitles the holders thereof to preferential payment or distribution priority with respect to dividends, distributions, assets or other payments over the holders of any other stock, partnership interest or other ownership or beneficial interest in such Person.

 

Prior Credit Agreement.  As defined in the recitals.

 

Rating Agencies.  S&P, Fitch and Moody’s, collectively, and “Rating Agency” means either S&P, Moody’s or Fitch.

 

Real Estate.  All real property at any time owned or leased (as lessee or sublessee) by the Borrower or any of its Subsidiaries.

 

Record.  The grid attached to any Note, or the continuation of such grid, or any other similar record, including computer records, maintained by Agent with respect to any Loan referred to in such Note.

 

Recourse Indebtedness.  Any Indebtedness (whether secured or unsecured) that is recourse to the Borrower or the Trust.  Guaranties with respect to customary exceptions to Non-recourse Indebtedness of Borrower’s Subsidiaries or Unconsolidated Affiliates shall not be deemed to be Recourse Indebtedness; provided that if a claim is made against Borrower or the Trust with respect thereto, the amount so claimed shall be considered Recourse Indebtedness.

 

Redevelopment Property.  Any Real Estate which is not Under Development and (1) is undergoing a significant Capital Improvement Project and (2) is designated as a Redevelopment Property by Borrower and approved by Agent, such approval not to be unreasonably withheld.

 

Register.  See §18.2.

 

REIT Status.  With respect to the Trust, its status as a real estate investment trust as defined in §856(a) of the Code.

 

Related Fund.  With respect to any Bank which is a fund that invests in loans, any Affiliate of such Bank or any other fund that invests in loans that is managed by the same investment advisor as such Bank or by an Affiliate of such Bank or such investment advisor.

 

Release.  See §6.18(c)(iii).

 

Required Banks.  As of any date, any Bank or collection of Banks whose aggregate Commitment Percentage is equal to or greater than sixty-six and two-thirds percent (66.66%); provided that in determining said percentage at any given time, all then existing Defaulting Banks will be disregarded and excluded and the Commitment Percentages of the Banks shall be redetermined for voting purposes only to exclude the Commitment Percentages of such Defaulting Banks.

 

  

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Reserve Percentage.  For any day with respect to a LIBOR Rate Loan, the maximum rate (expressed as a decimal) at which any lender subject thereto would be required to maintain reserves (including, without limitation, all base, supplemental, marginal and other reserves) under Regulation D of the Board of Governors of the Federal Reserve System (or any successor or similar regulations relating to such reserve requirements) against “Eurocurrency Liabilities” (as that term is used in Regulation D or any successor or similar regulation), if such liabilities were outstanding.  The Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in the Reserve Percentage.

 

Revolving Credit Banks.  Collectively, the Banks which have a Revolving Credit Commitment, the initial Revolving Credit Banks being identified on Schedule 1.1 hereto.

 

Revolving Credit Base Rate Loans.  The Revolving Credit Loans bearing interest by reference to the Base Rate.

 

Revolving Credit Commitment.  With respect to each Revolving Credit Bank, the amount set forth on Schedule 1.1 hereto as the amount of such Revolving Credit Bank’s Revolving Credit Commitment to make or maintain Revolving Credit Loans to Borrower or to participate in Swing Line Loans and Letters of Credit, as the same may be changed from time to time in accordance with the terms of this Agreement.

 

Revolving Credit Commitment Percentage.  With respect to each Revolving Credit Bank, the percentage set forth on Schedule 1.1 hereto as such Revolving Credit Bank’s percentage of the aggregate Revolving Credit Commitments of all of the Revolving Credit Banks, as the same may be changed from time to time in accordance with the terms of this Agreement; provided that if the Revolving Credit Commitments of the Revolving Credit Banks have been terminated as provided in this Agreement, then the Revolving Credit Commitment Percentage of each Revolving Credit Bank shall be determined based on the Revolving Credit Commitment Percentage of such Revolving Credit Bank immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms thereof.

 

Revolving Credit Extension Request.  See §4.15(a)(i).

 

Revolving Credit Loan or Loans.  An individual Revolving Credit Loan or the aggregate Revolving Credit Loans, as the case may be, made by the Revolving Credit Banks hereunder to Borrower, as more particularly described in §2.1.

 

Revolving Credit Note.  A promissory note made by the Borrower in favor of a Revolving Credit Bank in the principal face amount equal to such Revolving Credit Bank’s Revolving Credit Commitment, or if less, the outstanding amount of all  Revolving Credit Loans made by such Revolving Credit Bank, in substantially the form of Exhibit A hereto.

 

Revolving Credit LIBOR Rate Loans.  Revolving Credit Loans bearing interest calculated by reference to the LIBOR Rate.

 

Revolving Credit Maturity Date.  July 19, 2016, as such date may be extended as provided in §4.15, or such earlier date on which the Loans shall become due and payable pursuant to the terms hereof.

 

  

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S&P.  Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

 

SEC.  The federal Securities and Exchange Commission.

 

Secured Indebtedness.  Indebtedness of a Person that is pursuant to a Capitalized Lease or is directly or indirectly secured by a Lien.

 

Secured Recourse Indebtedness.  Secured Indebtedness of a Person that is also Recourse Indebtedness.

 

Short-term Investments.  Investments described in subsections (a) through (g), inclusive, of §8.3.

 

State.  A state of the United States of America.

 

Subordinated Debt.  Any subordinated debt which is not Trust Preferred Equity issued by the Trust or the Borrower (or a subsidiary trust created to issue such subordinated debt) (a) which has a minimum remaining term of not less than five (5) years, (b) which is unsecured and which is not guaranteed by any other Person, (c) which imposes no financial tests or covenants or negative covenants of the type set forth in §8 or §9 of this Agreement or the Guaranty or §12.1(p) or (q) of this Agreement (or other covenants, representations or defaults which have the same practical effect thereof) on the Trust, the Borrower or their respective Subsidiaries other than those approved by Agent, (d) pursuant to which all claims and liabilities of the Trust, Borrower and their respective Subsidiaries with respect to the principal and any premium and interest thereon are subordinate to the payment of the principal, letter of credit reimbursement obligations and any premium and interest thereon of the Borrower, the Trust and their respective Subsidiaries under this Agreement and other Indebtedness which by its terms is not subordinate to or pari passu with such Subordinated Debt on terms acceptable to the Agent, and as to which subordination provisions the Agent and the Banks shall be third party beneficiaries, and (e) which does not violate the terms of §8.11.

 

Subsidiary.  Any corporation, association, partnership, trust, or other business entity of which the designated parent shall at any time own directly or indirectly through a Subsidiary or Subsidiaries at least a majority (by number of votes or controlling interests) of the outstanding Voting Interests, and shall include all Persons the accounts of which are consolidated with those of such Person in accordance with GAAP.

 

Subsidiary Guarantor.  Collectively, Ramco Fox River LLC, Ramco Liberty Square LLC, Merchants 450 LLC, Ramco Gaines LLC, Beacon Square Development LLC, and each Subsidiary of Borrower or the Trust which becomes a Guarantor pursuant to §5.5.

 

Swing Line.  The revolving credit facility made available by the Swing Line Lender pursuant to §2.10.

 

Swing Line Borrowing.  A borrowing of a Swing Line Loan pursuant to §2.10.

 

  

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Swing Line Lender.  KeyBank, in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder.

 

Swing Line Loan.  See §2.10(a).

 

Swing Line Loan Notice.  A notice of a Swing Line Borrowing pursuant to §2.10(b), which, if in writing, shall be substantially in the form of Exhibit F attached hereto.

 

Swing Line Note.  See §2.10(g).

 

Swing Line Sublimit.  An amount equal to $24,000,000.00, as such amount may increase as provided in §2.10 or may reduce as provided in §2.7.  The Swing Line Sublimit is part of, and not in addition to, the Total Revolving Credit Commitments.

 

Tax Indemnity Agreement.  That certain Tax Agreement dated as of May 10, 1996 between Atlantic Realty Trust and RPS Realty Trust (now known as the Trust).

 

Term Base Rate Loans.  The Term Loans bearing interest by reference to the Base Rate.

 

Term LIBOR Rate Loans.  The Term Loans bearing interest by reference to the LIBOR Rate.

 

Term Loan or Term Loans.  An individual term loan or the aggregate term loans, as the case may be, in the maximum principal amount of $120,000,000.00 made by the Term Loan Banks hereunder pursuant to §2.2, as the same may be increased as provided in this Agreement.

 

Term Loan Banks.  Collectively, the Banks which have a Term Loan Commitment, the initial Term Loan Banks being identified on Schedule 1.1 hereto.

 

Term Loan Commitment.  As to each Term Loan Bank, the amount equal to such Term Loan Bank’s Term Loan Commitment Percentage of the aggregate principal amount of the Term Loans from time to time outstanding to Borrower.

 

Term Loan Commitment Percentage.  With respect to each Term Loan Bank, the percentage set forth on Schedule 1.1 hereto as such Term Loan Bank’s percentage of the aggregate Term Loans to Borrower, as the same may be changed from time to time in accordance with the terms of this Agreement.

 

Term Loan Maturity Date.  July 19, 2017 or such earlier date on which the Loans shall become due and payable pursuant to the terms hereof.

 

Term Loan Note.  A promissory note made by the Borrower in favor of a Term Loan Bank in the principal face amount equal to such Term Loan Bank’s Term Loan Commitment, in substantially the form of Exhibit B hereto.

 

TIF Guaranty.  That certain Guaranty dated as of March 11, 2005 made by Borrower and the Trust in favor of the City of Jacksonville relating to the development by Ramco Jacksonville LLC.

 

  

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Titled Agents.  The Arranger, the Co-Syndication Agents and the Co-Documentation Agents.

 

Total Commitment.  The sum of the Commitments of the Banks, as in effect from time to time.  As of the date of this Agreement, the Total Commitment is Three Hundred Sixty Million and No/100 Dollars ($360,000,000.00).  The Total Commitment may increase in accordance with §2.8.

 

Total Leverage Ratio.  The ratio as of any determination date of Consolidated Total Liabilities to Consolidated Total Adjusted Asset Value.

 

Total Revolving Credit Commitment.  The sum of the Revolving Credit Commitments of the Revolving Credit Banks, as in effect from time to time.  As of the date of this Agreement, the Total Revolving Credit Commitment is Two Hundred Forty Million and No/100 Dollars ($240,000,000.00).  The Total Revolving Credit Commitment may increase in accordance with §2.8.

 

Total Term Loan Commitment.  The sum of the Term Loan Commitments of the Term Loan Banks, as in effect from time to time.  As of the date of this Agreement the Total Term Loan Commitment is One Hundred Twenty Million and No/100 Dollars.  The Total Term Loan Commitment may increase in accordance with §2.8.

 

Trust.  Ramco-Gershenson Properties Trust, a Maryland real estate investment trust.

 

Trust Preferred Equity.  Any preferred equity interest (and related note) issued by the Trust (or a subsidiary trust created to issue such securities) (a) which has a minimum remaining term of not less than five (5) years (b) which is unsecured and which is not guaranteed by any other Person, (c) which imposes no financial or negative covenants (or other covenants, representations or defaults which have the same practical effect thereof) on the Trust, the Borrower or their respective Subsidiaries, (d) pursuant to which all claims and liabilities of the Trust, Borrower and its Subsidiary with respect thereto are subordinate to the payment of the Obligations of the Borrower, the Trust and their respective Subsidiaries on terms acceptable to the Agent, and as to which subordination provisions the Agent and the Banks shall be third party beneficiaries, (e) which provides that, upon the non-payment of the note and any dividends or other distributions that are required to be paid or made with respect thereto, the only available remedies to the holders thereof or any trustee or agent acting on their behalf are (x) the assumption of one or more seats on the Board of the Trust and/or (y) the blockage of (A) payments of any dividends or other distributions to the holders of the common shares of the Trust or other securities ranking on a parity with or subordinate to such Trust Preferred Equity, or (B) payments of amounts in redemption of or to repurchase common shares of the Trust or other securities ranking on a parity with or subordinate to such Trust Preferred Equity, and (f) which does not violate the terms of §8.11.

 

Type.  As to any Loan, its nature as a Base Rate Loan or a LIBOR Rate Loan.

 

Unconsolidated Affiliate.  As to any Person, any other Person in which it owns an interest which is not a Subsidiary.

 

  

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Under Development.  Any Real Estate or phase of a development shall be considered under development until such time as (i) certificates of occupancy permitting occupancy have been obtained for all tenants open for business and in any event for not less than fifty percent (50%) of the gross leasable area of such development or phase (excluding outlots) (it being agreed that Borrower shall receive a credit against such occupancy requirement for any space to be occupied by an anchor that has been conveyed to such anchor) or the Borrower has delivered to the Agent other evidence satisfactory to the Agent indicating that such occupancy of such development is lawful, and (ii) the gross income from the operation of such Real Estate or phase on an accrual basis shall have equaled or exceeded operating costs on an accrual basis for three (3) months.

 

Unencumbered Borrowing Base Properties.  Unencumbered Borrowing Base Properties shall mean Eligible Real Estate which satisfies all of the conditions set forth in §7.19.  The initial properties designated by Borrower to be Unencumbered Borrowing Base Properties are described on Schedule 6.31 hereto.

 

Unencumbered Pool Value.  The Unencumbered Pool Value shall be with respect to any Eligible Real Estate included in the Unencumbered Borrowing Base Property, the sum of (i) with respect to each Unencumbered Borrowing Base Property owned by Borrower or one of its Subsidiaries for at least the previous four (4) consecutive fiscal quarters, the aggregate Operating Cash Flow from Eligible Real Estate included in the Unencumbered Borrowing Base Property divided by the Capitalization Rate and (ii) with respect to each Unencumbered Borrowing Base Property owned by Borrower or one of its Subsidiaries and acquired during the prior four (4) consecutive fiscal quarters, the acquisition cost of such Unencumbered Borrowing Base Property determined in accordance with GAAP.  Notwithstanding the foregoing, the Unencumbered Pool Value for an Unencumbered Borrowing Base Property that is a Redevelopment Property shall be the cost incurred for such Unencumbered Borrowing Base Property as determined in accordance with GAAP for a period of up to twenty-four (24) months, which period shall commence upon the date which Agent approves such Unencumbered Borrowing Base Property as a Redevelopment Property.

 

Unsecured Indebtedness.  As of any date of determination, the sum of (a) the Indebtedness of the Borrower, the Trust and their respective Subsidiaries outstanding at any time which is not Secured Indebtedness plus (b) the amount by which the portion of the aggregate Secured Recourse Indebtedness of the Borrower, the Trust and their Subsidiaries exceeds the lesser of (i) $150,000,000.00 and (ii) ten percent (10%) of Consolidated Total Adjusted Asset Value.  For the purposes of this definition, the amount of any contingent obligation of the type described in clause (c) of the definition of Indebtedness shall be deemed to be an amount equal to the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder), as determined by Borrower in good faith and reasonably approved by Agent.  Guaranties with respect to customary exceptions to Non-recourse Indebtedness of Borrower’s Subsidiaries or Unconsolidated Affiliates shall not be deemed to be Unsecured Indebtedness; provided that if a claim is made against Borrower or the Trust with respect thereto, the amount so claimed shall be considered Unsecured Indebtedness.  Unsecured Indebtedness shall not include Subordinated Debt or accounts payable paid in the ordinary course of business.

 

  

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Variable Rate Debt.  Indebtedness that is payable by reference to a rate of interest that may vary, float or change during the term of such Indebtedness (that is, a rate of interest that is not fixed for the entire term of such Indebtedness).

 

Voting Interests.  Stock or similar ownership interests, of any class or classes (however designated), the holders of which are at the time entitled, as such holders, (a) to vote for the election of a majority of the directors (or persons performing similar functions) of the corporation, association, partnership, trust or other business entity involved, or (b) to control, manage, or conduct the business of the corporation, partnership, association, trust or other business entity involved.

 

Wholly Owned Subsidiary.  Any Subsidiary of Borrower or the Trust in which all of the equity interests (other than in the case of a corporation, director’s qualifying shares) are at the time directly or indirectly owned by Borrower or the Trust.

 

§1.2.                Rules of Interpretation.

 

(a)           A reference to any document or agreement shall include such document or agreement as amended, modified or supplemented from time to time in accordance with its terms and the terms of this Agreement.

 

(b)           The singular includes the plural and the plural includes the singular.

 

(c)           A reference to any law includes any amendment or modification to such law.

 

(d)           A reference to any Person includes its permitted successors and permitted assigns.

 

(e)           Accounting terms not otherwise defined herein have the meanings assigned to them by GAAP applied on a consistent basis by the accounting entity to which they refer.

 

(f)            The words “include”, “includes” and “including” are not limiting.

 

(g)           The words “approval” and “approved”, as the context so determines, means an approval in writing given to the party seeking approval after full and fair disclosure to the party giving approval of all material facts necessary in order to determine whether approval should be granted.

 

(h)           All terms not specifically defined herein or by GAAP, which terms are defined in the Uniform Commercial Code as in effect in the State of  Michigan, have the meanings assigned to them therein.

 

(i)            Reference to a particular “§”, refers to that section of this Agreement unless otherwise indicated.

 

  

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(j)            The words “herein”, “hereof”, “hereunder” and words of like import shall refer to this Agreement as a whole and not to any particular section or subdivision of this Agreement.

 

(k)           In the event of any change in GAAP after the date hereof or any other change in accounting procedures pursuant to §7.3 which would affect the computation of any financial covenant, ratio or other requirement set forth in any Loan Document, then upon the request of the Borrower or Agent, the Borrower, the Guarantors, the Agent and the Banks shall negotiate promptly, diligently and in good faith in order to amend the provisions of the Loan Documents such that such financial covenant, ratio or other requirement shall continue to provide substantially the same financial tests or restrictions of the Borrower and the Guarantors as in effect prior to such accounting change, as determined by the Required Banks in their good faith judgment.  Until such time as such amendment shall have been executed and delivered by the Borrower, the Guarantors, the Agent and the Required Banks, such financial covenants, ratio and other requirements, and all financial statements and other documents required to be delivered under the Loan Documents, shall be calculated and reported as if such change had not occurred.

 

(l)           Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of Trust or any of its Subsidiaries at “fair value”, as defined therein, and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.

 

	
§2.

	
THE CREDIT FACILITY.

 

§2.1.                Commitment to Lend Revolving Credit Loans.  Subject to the terms and conditions set forth in this Agreement, each of the Revolving Credit Banks severally agrees to lend to the Borrower (the “Revolving Credit Loans”), and the Borrower may borrow (and repay and reborrow) from time to time between the Closing Date and the Revolving Credit Maturity Date upon notice by the Borrower to the Agent given in accordance with §2.5, such sums as are requested by the Borrower for the purposes set forth in §7.11 up to a maximum aggregate principal amount Outstanding (after giving effect to all amounts requested and the amount of Swing Line Loans and Letter of Credit Liabilities) not to exceed such Revolving Credit Bank’s Revolving Credit Commitment minus an amount equal to such Revolving Credit Bank’s participations in the Swing Line Loans and the Letter of Credit Liabilities; provided, that, in all events no Default or Event of Default shall have occurred and be continuing; and provided, further that the Outstanding Revolving Credit Loans (after giving effect to all amounts requested) and the Outstanding Swing Line Loans and the Letter of Credit Liabilities shall not at any time exceed (a) the Total Revolving Credit Commitment, or (b) an amount that would cause a Default or Event of Default under §9.5 (or the terms of §12.1(c) would not require the Revolving Credit Banks to make Loans).  The Revolving Credit Loans shall be made pro rata in accordance with each Revolving Credit Bank’s Revolving Credit Commitment Percentage.  Each request for a Revolving Credit Loan hereunder shall constitute a representation and warranty by the Borrower that all of the conditions set forth in §10 and §11, in the case of the initial Revolving Credit Loan, and §11, in the case of all other Revolving Credit Loans, have been satisfied on the date of such request.

 

  

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§2.2.                Commitment to Lend Term Loan.  Subject to the terms and conditions set forth in this Agreement, each of the Term Loan Banks severally agrees to lend to Borrower on the Closing Date such Term Loan Bank’s Term Loan Commitment.

 

§2.3.                Unused Fee; Facility Fee.  (a) The Borrower agrees to pay to the Agent for the account of the Revolving Credit Banks in accordance with their respective Revolving Credit Commitment Percentages an unused fee (the “Unused Fee”) calculated at the rate per annum equal to 0.25% (25 basis points) on the daily amount by which the Total Revolving Credit Commitment exceeds the Outstanding Revolving Credit Loans during each day of a calendar quarter or portion thereof commencing on the date hereof and ending on the Revolving Credit Maturity Date.  Subject to §2.3(b) below, the Unused Fee shall be calculated for each day of such quarter.  The Unused Fee shall be payable quarterly in arrears on the fifth day of each calendar quarter for the immediately preceding calendar quarter or portion thereof, or on any earlier date on which the Revolving Credit Commitments shall be reduced or terminated as provided in §2.7, with a final payment on the Revolving Credit Maturity Date.

 

(a)           From and after the time that Agent first receives written notice that Trust has first obtained an Investment Grade Rating from at least two (2) Rating Agencies and that Borrower has irrevocably elected to have the Applicable Margin determined based upon the Credit Rating Levels set forth in subpart (b) of the definition of Applicable Margin, the Unused Fee shall no longer accrue (but any accrued Unused Fee shall be payable as provided in §2.3(a)) and from and thereafter, the Borrower shall pay to the Agent for the account of the Revolving Credit Banks a facility fee (the “Facility Fee”) from the date thereof until the Revolving Credit Maturity Date, payable in arrears on the fifth (5th) day of each calendar quarter and on the Revolving Credit Maturity Date.  The Facility Fee payable to the account of each Revolving Credit Bank shall be calculated daily for each period for which the Facility Fee is payable on the Total Revolving Credit Commitment during such period at the rate per annum set forth below:

 

	
Credit Rating Level

 

	
Facility Fee Rate

	
Credit Rating Level 1

	
0.15%

	
Credit Rating Level 2

	
0.20%

	
Credit Rating Level 3

	
0.25%

	
Credit Rating Level 4

	
0.30%

	
Credit Rating Level 5

	
0.40%

 

 

The Facility Fee shall be determined by reference to the Credit Rating Level in effect from time to time; provided, however, that no change in the Facility Fee rate resulting from a change in the Credit Rating Level shall be effective until three Business Days after the date on which the Agent receives written notice of the application of the Credit Rating Levels or a change in such Credit Rating Level.

 

  

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§2.4.                Interest on Loans.

 

(a)           Each Revolving Credit Base Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Revolving Credit Base Rate Loan is repaid or is converted to a Revolving Credit LIBOR Rate Loan at the per annum rate equal to the sum of the Applicable Margin for Revolving Credit Base Rate Loans plus the Base Rate.

 

(b)           Each Revolving Credit LIBOR Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date such Revolving Credit LIBOR Loan is repaid or is converted to a Revolving Credit Base Rate Loan at the rate per annum equal to the sum of the Applicable Margin for Revolving Credit LIBOR Rate Loans plus the LIBOR Rate determined for such Interest Period.

 

(c)           Each Term Base Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Term Base Rate Loan is repaid or is converted to a Term LIBOR Rate Loan at a rate per annum equal to the sum of the Applicable Margin for Term Base Rate Loans plus the Base Rate.

 

(d)           Each Term LIBOR Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Term LIBOR Rate Loan is repaid or is converted to a Term Base Rate Loan at the rate per annum equal to the sum of the Applicable Margin for Term LIBOR Rate Loans plus the LIBOR Rate determined for such Interest Period.

 

(e)           The Borrower promises to pay interest on each Loan to it in arrears on each Interest Payment Date with respect thereto, or on any earlier date on which the Revolving Credit Commitments shall terminate as provided in §2.7.  In the event that any additional interest becomes due and payable for any period with respect to a Loan as a result of the Applicable Margin being determined based on the ratio of Consolidated Total Liabilities to Consolidated Total Adjusted Asset Value or any change in such ratio, and the interest for such period has previously been paid by the Borrower, the Borrower shall pay to the Agent for the account of the Banks the amount of such increase within ten (10) days of demand.

 

(f)           Base Rate Loans and LIBOR Rate Loans may be converted to Loans of the other Type as provided in §4.1.

 

  

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§2.5.                Requests for Revolving Credit Loans.  The Borrower (i) shall notify the Agent of a potential request for a Revolving Credit Loan as soon as possible prior to the Borrower’s proposed Drawdown Date, and (ii) shall give to the Agent written notice in the form of Exhibit E hereto (or telephonic notice confirmed in writing in the form of Exhibit E hereto) of each Revolving Credit Loan requested hereunder (a “Loan Request”) no later than 11:00 a.m. (Cleveland time) three (3) Business Days prior to the proposed Drawdown Date if such Loan is to be a Revolving Credit LIBOR Rate Loan or no later than 2:00 p.m. (Cleveland time) one (1) Business Day prior to the proposed Drawdown Date if such Loan is to be a Revolving Credit Base Rate Loan.  Each such notice shall specify with respect to the requested Revolving Credit Loan the proposed principal amount, Drawdown Date, Interest Period (if applicable) and Type.  Each such notice shall also contain (i) a statement as to the purpose for which such advance shall be or has been used (which purpose shall be in accordance with the terms of §7.11), and (ii) a certification by the chief executive officer, chief financial or chief accounting officer of the general partner of the Borrower and the chief executive officer, chief financial or chief accounting officer of the Trust that the Borrower and Guarantors are and will be in compliance with all covenants under the Loan Documents after giving effect to the making of such Revolving Credit Loan.  Promptly upon receipt of any such notice, the Agent shall notify each of the Revolving Credit Banks thereof.  Except as provided in this §2.5, each such Loan Request shall be irrevocable and binding on the Borrower and shall obligate the Borrower to accept the Revolving Credit Loan requested from the Revolving Credit Banks on the proposed Drawdown Date, provided that, in addition to the Borrower’s other remedies against any Revolving Credit Bank which fails to advance its proportionate share of a requested Revolving Credit Loan, such Loan Request may be revoked by the Borrower by notice received by the Agent no later than the Drawdown Date if any Revolving Credit Bank fails to advance its proportionate share of the requested Revolving Credit Loan in accordance with the terms of this Agreement, provided further, that the Borrower shall be liable in accordance with the terms of this Agreement to any Revolving Credit Bank which is prepared to advance its proportionate share of the requested Revolving Credit Loan for any costs, expenses or damages actually incurred by such Revolving Credit Bank as a result of the Borrower’s election to revoke such Loan Request.  Nothing herein shall prevent the Borrower from seeking recourse against any Revolving Credit Bank that fails to advance its proportionate share of a requested Revolving Credit Loan as required by this Agreement.  The Borrower may without cost or penalty revoke a Loan Request by delivering notice thereof to each of the Revolving Credit Banks no later than three (3) Business Days prior to the Drawdown Date.  Each Loan Request shall be (a) for a Revolving Credit Base Rate Loan in the minimum aggregate amount of $500,000 or an integral multiple of $100,000 in excess thereof, or (b) for a Revolving Credit LIBOR Rate Loan in a minimum aggregate amount of $500,000.00 or an integral multiple of $100,000 in excess thereof; provided, however, that there shall be no more than twelve (12) Revolving Credit LIBOR Rate Loans outstanding at any one time.

 

§2.6.                Funds for Loans.

 

(a)           Not later than 11:00 a.m. (Cleveland time) on the proposed Drawdown Date of any Revolving Credit Loans or Term Loans, each of the Revolving Credit Banks or Term Loan Banks, as applicable, will make available to the Agent, at the Agent’s Head Office, in immediately available funds, the amount of such Bank’s Commitment Percentage of the amount of the requested Loans which may be disbursed pursuant to §2.1 or §2.2, as applicable.  Upon receipt from each such Bank of such amount, and upon receipt of the documents required by §10 and §11 and the satisfaction of the other conditions set forth therein, to the extent applicable, the Agent will make available to the Borrower the aggregate amount of Revolving Credit Loans or Term Loans, as applicable, made available to the Agent by the Revolving Credit Banks or Term Loan Banks, as applicable, by crediting such amount to the account of the Borrower maintained at the Agent’s Head Office or by transferring such amount to an account designated by Borrower.  The failure or refusal of any Revolving Credit Bank or Term Loan Bank to make available to the Agent at the aforesaid time and place on any Drawdown Date the amount of its Commitment Percentage of the requested Loans shall not relieve any other Revolving Credit Bank or Term Loan Bank from its several obligation hereunder to make available to the Agent the amount of such other Bank’s Commitment Percentage of any requested Loans, including any additional Revolving Credit Loans that may be requested subject to the terms and conditions hereof to provide funds to replace those not advanced by the Revolving Credit Bank so failing or refusing.  The Borrower may by notice received by the Agent no later than the Drawdown Date refuse to accept any Revolving Credit Loan which is not fully funded in accordance with the Borrower’s Loan Request subject to the terms of §2.5.  In the event of any such failure or refusal, the Banks not so failing or refusing shall be entitled to a priority position as against the Bank or Banks so failing or refusing for such Loans as provided in §12.5.

 

  

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(b)           Unless the Agent shall have been notified by any Bank prior to the applicable Drawdown Date that such Bank will not make available to the Agent such Bank’s pro rata share of a proposed Loan, the Agent may in its discretion assume that such Bank has made such share of the proposed Loan available to Agent in accordance with the provisions of this Agreement and the Agent may, if it chooses, in reliance upon such assumption make such Loan available to Borrower, and such Bank shall be liable to the Agent for the amount of such advance.  If such Bank does not pay such corresponding amount upon the Agent’s demand therefor, the Agent will promptly notify the Borrower, and the Borrower shall promptly pay such corresponding amount to the Agent.  The Agent shall also be entitled to recover from the Bank or the Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Agent to the Borrower to the date such corresponding amount is recovered by the Agent at a per annum rate equal to (i) from the Borrower at the applicable rate for such Loan or (ii) from a Bank at the Federal Funds Effective Rate.

 

§2.7.                Optional Reduction of Revolving Credit Commitments.  The Borrower shall have the right at any time and from time to time upon three Business Days’ prior written notice to the Agent to reduce by $5,000,000.00 or an integral multiple of $1,000,000.00 in excess thereof (provided that in no event shall the aggregate Revolving Credit Commitments be reduced to an amount less than $75,000,000.00) or to terminate entirely the unborrowed portion of the Revolving Credit Commitments (which shall include the aggregate amount of Outstanding Letters of Credit and Swing Line Loans), whereupon the Revolving Credit Commitments of the Revolving Credit Banks shall be reduced pro rata in accordance with their respective Revolving Credit Commitment Percentages of the amount specified in such notice or, as the case may be, terminated, any such reduction to be without penalty.  Promptly after receiving any notice of the Borrower delivered pursuant to this §2.7, the Agent will notify the Revolving Credit Banks of the substance thereof.  Upon the effective date of any such termination in full, the Borrower shall pay to the Agent for the respective accounts of the Revolving Credit Banks the full amount of any facility fee under §2.3 then accrued.  No reduction or termination of the Revolving Credit Commitments may be reinstated.  Any reduction of the Revolving Credit Commitments pursuant to this Agreement shall be allocated pro rata among the Revolving Credit Banks in accordance with their Revolving Credit Commitment Percentages.  Notwithstanding the foregoing, the Revolving Credit Commitments shall not be reduced below an amount equal to the Outstanding Revolving Credit Loans (including the aggregate amount of Letter of Credit Liabilities and Swing Line Loans).  Any reduction of the Revolving Credit Commitments shall also result in a proportionate reduction (rounded to the next lowest integral multiple of $100,000.00) in the maximum amount of Swing Line Loans and the Letter of Credit Sublimit.

 

  

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§2.8.                Increase of Revolving Credit Commitment and Term Loan Commitment.

 

(a)           Provided that no Default or Event of Default shall have occurred and be continuing, the Borrower shall have the option, by giving written notice to the Agent (the “Increase Notice”), subject to the terms and conditions set forth in this Agreement, to increase the Total Revolving Credit Commitment and/or the Total Term Loan Commitment, each in increments of $10,000,000.00 by an aggregate amount of increases to the Total Revolving Credit Commitment and the Total Term Loan Commitment of up to $90,000,000 (the amount of the requested increase to be set forth in the Increase Notice) (which, assuming no previous reduction in the Revolving Credit Commitments, would result in a maximum Total Commitment of $450,000,000).  The execution and delivery of the Increase Notice by Borrower shall constitute a representation and warranty by the Borrower that all the conditions set forth in this §2.8 shall have been satisfied on the date of such Increase Notice.  The Commitment increase may be allocated (1) to the then existing Revolving Credit Commitments, (2) as a new revolving tranche having the same terms as the then existing Revolving Credit Commitments, (3) to the then existing Term Loan Commitments having the same terms as the existing Term Loan Commitments, or (4) any combination thereof satisfactory to Agent and existing or additional Revolving Credit Banks or Term Loan Banks, as applicable, providing such additional Revolving Credit Commitments or Term Loan Commitments, as applicable.

 

(b)           The obligation of the Agent and the Revolving Credit Banks to increase the Total Revolving Credit Commitment or the Agent and the Term Loan Banks to increase the Total Term Loan Commitment, as applicable, pursuant to this §2.8 shall be conditioned upon satisfaction of the following conditions precedent which must be satisfied prior to the effectiveness of any increase of the Total Revolving Credit Commitment or Total Term Loan Commitment, as applicable.

 

(i)           Payment of Activation Fee.  The Borrower shall pay to the Agent those fees described in and contemplated by the Agreement Regarding Fees referred to in §4.2 with respect to the applicable increase and to the Agent such fees as Agent and the Revolving Credit Banks or Term Loan Banks, as applicable, acquiring such increase may require to increase the aggregate Revolving Credit Commitment or Term Loan Commitment, which fees shall, when paid, be fully earned and non-refundable under any circumstances.  The Agent shall pay to the Banks acquiring the increased Revolving Credit Commitment or Term Loan Commitment certain fees pursuant to their separate agreement; and

 

(ii)           No Default.  On the date such Increase Notice is given and on the date such increase becomes effective, both immediately before and after the Revolving Credit Commitment or Term Loan Commitment is increased, there shall exist no Default or Event of Default; and

 

(iii)          Representations and Warranties.  The representations and warranties made by the Borrower or Guarantors in the Loan Documents or otherwise made by or on behalf of the Borrower, Guarantors or any of their respective Subsidiaries in connection therewith or after the date thereof shall have been true and correct in all material respects, when made and shall also be true and correct in all material respects on the date of such Increase Notice and on the date the Total Revolving Credit Commitment or Total Term Loan Commitment is increased, both immediately before and after the Total Revolving Credit Commitment or Total Term Loan Commitment is increased; and

 

  

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(iv)          Additional Documents and Fees.  The Borrower shall also execute and deliver to Agent and the Banks such additional documents, instruments, certifications and opinions as the Agent may require in its sole and absolute discretion, including, without limitation, a Compliance Certificate, demonstrating compliance with all covenants, representations and warranties set forth in the Loan Documents after giving effect to the increase, as Agent may request (including demonstrating compliance with all covenants, representations and warranties set forth in the Loan Documents after giving effect to the increase); and

 

(v)           Assignments.  One or more Revolving Credit Banks or Term Loan Banks, as applicable, or potential assignees reasonably acceptable to Agent shall have agreed to acquire the portion of the Revolving Credit Commitment or Term Loan Commitment that Borrower desires to activate, provided, however, no Bank (including, specifically, but without limitation, KeyBank) shall be obligated to acquire such increase without the express written consent of such Bank, which consent may be withheld in such Bank’s sole and absolute discretion.  The allocation of any such increase shall be reasonably acceptable to the Agent; and

 

(vi)         Other.  The Borrower shall satisfy such other conditions to such increase as Agent may require in its reasonable discretion.

 

(c)           Upon satisfaction of the terms and conditions set forth above, (i) if such increase is to the Total Revolving Credit Commitment the amount set forth in the Increase Notice shall become a part of the Revolving Credit Commitment and the Total Revolving Credit Commitment and be available to be disbursed subject to the terms of this Agreement, and, subject to the payment of any breakage costs pursuant to §4.8, the Revolving Credit Banks shall make such adjustments to the outstanding Revolving Credit Loans of such Revolving Credit Banks, so that, after giving effect to such increase, the outstanding Revolving Credit Loans are consistent with their pro-rata share, and (ii) if such increase is to the Total Term Loan Commitment, the amount set forth in the Increase Notice shall become part of the Term Loan Commitment and shall be funded by the Term Loan Bank or Banks acquiring such Term Loan Commitment to the Agent for disbursement to the Borrower.  The Agent may unilaterally amend Schedule 1.1 to reflect any such increase in the Total Commitment.

 

  

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§2.9.                Letters of Credit.

 

(a)           Subject to the terms and conditions hereof and provided that all of the conditions contained in §§10 and 11 have been satisfied, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower, from the date of this Agreement to, but not including, the Revolving Credit Maturity Date at such times as the Borrower may request; provided, however, that the aggregate Letter of Credit Liabilities (including such requested Letter of Credit) at any one time Outstanding shall not (i) exceed the lesser of (A) the Total Revolving Credit Commitment minus the aggregate amount of Outstanding Revolving Credit Loans (including any Swing Line Loans), or (B) the Letter of Credit Sublimit, or (ii) cause a Default or Event of Default under §9.5 (or the terms of §12.1(c) would not require a Bank to issue a Letter of Credit).  Notwithstanding anything to the contrary contained in this §2.9, the Issuing Bank shall not be obligated to issue, amend, extend, renew or increase any Letter of Credit at a time when any other Revolving Credit Bank is a Defaulting Bank, unless the Issuing Bank is satisfied that the participation therein will otherwise be fully allocated to the Revolving Credit Banks that are Non-Defaulting Banks consistent with §2.12(c) and the Defaulting Bank shall have no participation therein, except to the extent the Issuing Bank has entered into arrangements with the Borrower or such Defaulting Bank which are satisfactory to the Issuing Bank in its good faith determination to eliminate the Issuing Bank’s Fronting Exposure with respect to any such Defaulting Bank, including the delivery of cash collateral.  The issuance of a Letter of Credit pursuant to this §2.9(a) shall be deemed to reduce the aggregate of the unborrowed Revolving Credit Commitments of the Revolving Credit Banks then in effect by an amount equal to the undrawn face amount of such Letter of Credit as set forth herein.  In no event shall any amount drawn under a Letter of Credit be available for reinstatement or a subsequent drawing under a Letter of Credit.  Each Revolving Credit Bank severally agrees to participate in each such Letter of Credit issued by the Issuing Bank in an amount equal to its Revolving Credit Commitment Percentage of the total amount of the Letter of Credit requested by the Borrower; provided, however, that no Revolving Credit Bank shall be required to participate in any Letter of Credit to the extent that its participation therein plus (x) such Revolving Credit Bank’s participation in the aggregate of all other Letters of Credit and Swing Line Loans Outstanding, and (y) such Revolving Credit Bank’s Revolving Credit Commitment Percentage of the amount of any Revolving Credit Loans and Swing Line Loans Outstanding (including any amounts drawn under any Letters of Credit and not yet reimbursed by the Borrower), would exceed an amount equal to such Revolving Credit Bank’s Revolving Credit Commitment as then in effect.  Each Revolving Credit Bank agrees with the Agent that it will participate in each Letter of Credit issued by the Issuing Bank to the extent required by the preceding sentence.  No Revolving Credit Bank’s obligation to participate in a Letter of Credit shall be affected by any other Revolving Credit Bank’s failure to participate in the same or any other Letter of Credit.  The Existing Letters of Credit shall upon the Closing Date be deemed to be a Letter of Credit under this Agreement.

 

(b)           The Borrower shall deliver to the Agent and the Issuing Bank at least five (5) Business Days (or such shorter period as may be agreed to by the Agent and the Issuing Bank in any particular instance) prior to the proposed issuance date or amendment date of any Letter of Credit, a Letter of Credit Application signed by the chief executive, chief financial or chief accounting officer of the general partner of the Borrower in the form of Exhibit G hereto (a “Letter of Credit Application”) together with a certification by the chief financial or chief accounting officer of the general partner of the Borrower and the chief financial or chief accounting officer of the Trust that the Borrower and Guarantors are and will be in compliance with all covenants under the Loan Documents after giving effect to the issuance of such Letter of Credit.  Subject to the terms and conditions set forth in §2.9(a) and, unless the Issuing Bank has received written notice from a Revolving Credit Bank that the conditions precedent to such issuance of a Letter of Credit set forth in §11 have not been satisfied, the Issuing Bank will make the requested Letter of Credit available at the Issuing Bank’s principal office not later than 4:00 p.m. (Cleveland time) on the issuance date, and, immediately upon the issuance of each Letter of Credit, each Revolving Credit Bank shall be deemed to participate in such Letter of Credit to the extent set forth in §2.9(a).  Not more than two (2) Business Days after the issuance of any Letter of Credit, the Issuing Bank shall notify each Revolving Credit Bank of the amount and other contents of such Letter of Credit and of the date of issuance.  The Issuing Bank shall notify each Revolving Credit Bank at least monthly, or at the request of such Revolving Credit Bank, of the amount of all Outstanding Letters of Credit.

 

  

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(c)           The chief executive, chief financial or chief accounting officer of the general partner of the Borrower may request a Letter of Credit on behalf of the Borrower.  The Issuing Bank shall be entitled to rely conclusively on such authorized officer’s authority to request a Letter of Credit on behalf of the Borrower until the Issuing Bank receives written notice to the contrary.  The Issuing Bank shall have no duty to verify the authenticity of the signature appearing on any Letter of Credit Application.

 

(d)           Each Letter of Credit Application shall be irrevocable and the Borrower shall be bound to accept the issuance of a Letter of Credit in accordance therewith.

 

(e)           All Letters of Credit shall be stated to expire no more than twelve (12) months from the date of issuance, provided that at the option of the Issuing Bank such Letter of Credit may contain renewal options; and provided further in the event that a Letter of Credit would remain outstanding after the Revolving Credit Maturity Date, Borrower shall as a condition to such issuance or renewal provide cash collateral to Agent in the face amount of such Letters of Credit until such time as all amounts drawn under such Letters of Credit are drawn and repaid, or such Letters of Credit expire by their terms and are surrendered without further obligation of Issuing Bank to honor any draw thereunder.  In connection therewith, Borrower shall enter into such agreements as Agent may reasonably require to perfect Agent’s first-priority security interest in such cash collateral.

 

(f)           In the event that any amount is drawn under a Letter of Credit by the beneficiary thereof, the Issuing Bank shall notify the Agent thereof and the Borrower shall reimburse the Issuing Bank on the same day of such draw, including by having such amount drawn treated as an outstanding Revolving Credit Base Rate Loan under this Agreement and the Agent shall promptly notify each Revolving Credit Bank by telex, telecopy, telegram, telephone (confirmed in writing) or other similar means of transmission, and each Revolving Credit Bank shall promptly and unconditionally pay to the Agent, for the Issuing Bank’s own account, an amount equal to such Revolving Credit Bank’s Revolving Credit Commitment Percentage of such Letter of Credit (to the extent of the amount drawn).  If and to the extent any Revolving Credit Bank shall not make such amount available on the Business Day on which such draw occurs, such Revolving Credit Bank agrees to pay such amount to the Agent forthwith on demand, together with interest thereon, for each day from the date on which such draw occurred until the date on which such amount is paid to the Agent, at the Federal Funds Effective Rate until three (3) days after the date on which the Agent gives notice of such draw and at the Federal Funds Effective Rate plus 1% for each day thereafter.  The failure of any Revolving Credit Bank to make funds available to the Agent in such amount shall not relieve any other Revolving Credit Bank of its obligation hereunder to make funds available to the Agent pursuant to this §2.9(f).

 

  

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(g)           The obligation of the Borrower to reimburse the Issuing Bank, and of the Revolving Credit Banks to make payments to the Agent for the account of the Issuing Bank with respect to Letters of Credit, shall be irrevocable and shall not be subject to any qualification or exception whatsoever and shall be made in accordance with the terms and conditions of this Agreement under all circumstances, including, without limitation, any of the following circumstances:

 

(i)            Any lack of validity or enforceability of this Agreement, any Letter of Credit or any of the other Loan Documents;

 

(ii)           The existence of any claim, setoff, defense or other right which the Borrower may have at any time against a beneficiary named in a Letter of Credit or any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), the Agent, the Issuing Bank, any Bank or any other Person, whether in connection with this Agreement, any Letter of Credit, the transactions contemplated herein or any unrelated transactions (including any underlying transactions between the Borrower or any Subsidiary of the Borrower and the beneficiary named in any Letter of Credit);

 

(iii)          Any draft, certificate 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 in the absence of gross negligence or willful misconduct on the part of the Agent;

 

(iv)         The surrender or impairment of any security for the performance or observance of any of the terms of any of the Loan Documents;

 

(v)          Payment by the Issuing Bank under any Letter of Credit against presentation of a demand, draft or certificate or other document which does not comply with the terms of such Letter of Credit, provided that such payment does not constitute gross negligence or willful misconduct of the Issuing Bank;

 

(vi)         Any other circumstance or happening whatsoever which is similar to any of the foregoing; or

 

(vii)        The occurrence of any Event of Default or Default.

 

(h)           Whenever the Agent for the account of the Issuing Bank receives a reimbursement payment from the Borrower on account of an amount drawn under a Letter of Credit, as to which the Issuing Bank has received for its own account any payment to acquire a participation interest therein from the Revolving Credit Banks pursuant to §2.9(m), then the Agent shall promptly pay to each Revolving Credit Bank which has funded its participation in such Letter of Credit in accordance with this  §2.9, in Dollars and in the kind of funds so received, such Revolving Credit Bank’s share of such reimbursement payment based on its Revolving Credit Commitment Percentage of such Letter of Credit.  If any payment received by the Issuing Bank in respect of principal or interest on any reimbursement obligation with respect to a Letter of Credit is required to be returned by the Issuing Bank (including pursuant to any settlement entered into by the Issuing Bank in its discretion), each Revolving Credit Bank that has acquired a participation interest in such Letter of Credit shall pay to the Issuing Bank its Revolving Credit Commitment Percentage thereof on demand of the Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the Federal Funds Effective Rate.  The Agent will make such demand upon the request of the Issuing Bank.  The obligations of the Revolving Credit Banks under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

  

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(i)           The Borrower shall pay to the Agent for the account of the Revolving Credit Banks that are Non-Defaulting Banks (based on their respective Revolving Credit Commitment Percentage of Letters of Credit), a fee equal to the Applicable Margin for Revolving Credit LIBOR Rate Loans on the face amount of the Letter of Credit calculated quarterly and payable in arrears on the first (1st) day of each January, April, July and October during the term of such Letter of Credit, with a final payment on the expiry of termination thereof.  The fee for any Letter of Credit with a term of less than one year (or part of a year) shall be calculated on a pro-rata basis.  In addition, the Borrower shall pay the standard service charges for Letters of Credit issued from time to time by the Issuing Bank including an issuance fee of $150.00  for each Letter of Credit.  Such additional fees shall be paid to the Issuing Bank for its own account.  All such fees shall be payable when due in immediately available funds and shall be nonrefundable.

 

(j)           In addition to amounts payable as elsewhere provided in this §2.9, the Borrower hereby agrees to pay, and to protect, indemnify and save harmless the Agent and the Banks from and against, any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’ fees and allocated costs of internal counsel) which the Agent and the Banks may incur or be subject to as a consequence, direct or indirect, of (i) the issuance of or participations in the Letters of Credit, other than as a result of the gross negligence or willful misconduct of the Agent or any Bank as determined by a court of competent jurisdiction, or (ii) the failure of the Issuing Bank to honor a drawing under any Letter of Credit as a result of any act or omission, whether rightful or wrongful, of any present or future government or governmental authority (all such acts or omissions herein called “Government Acts”).  The obligations of the Borrower under this §2.9 shall survive the termination of this Agreement and the discharge of the Borrower’s other obligations hereunder, including the Obligations.

 

(k)           As between (i) the Borrower and (ii) the Agent and the Banks, 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, neither the Agent nor any Bank shall be responsible: (i) for the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of such Letters of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any Letter of Credit or the right or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) for failure of the beneficiary of any Letter of Credit to comply fully with conditions required in order to draw upon such Letter of Credit; (iv) for 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) for errors in interpretation of technical terms; (vi) for any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit or of the proceeds thereof; (vii) for the misapplication by the beneficiary of any Letter of Credit of the proceeds of any drawing under such Letter of Credit; and (viii) for any consequences arising from causes beyond the control of the Agent or any Bank, including, without limitation, any Government Acts; provided, however, that the Issuing Bank will be responsible for grossly negligent actions or willful misconduct on its part.  None of the above shall affect, impair, or prevent the vesting of any of the Agent’s or any Bank’s rights or powers hereunder.

 

  

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(l)           In furtherance and extension and not in limitation of the specific provisions hereinabove set forth, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit issued by it or the related certificates, if taken or omitted in good faith shall not put the Agent or any Bank under any resulting liability to the Borrower other than as a result of gross negligence or willful misconduct by the Issuing Bank as determined by a court of competent jurisdiction.

 

(m)           If after the issuance of a Letter of Credit, but prior to the funding of any portion thereof by a Revolving Credit Bank, for any reason a drawing under a Letter of Credit cannot be refinanced as a Revolving Credit Loan, each Revolving Credit Bank will, on the date such Revolving Credit Loan pursuant to §2.9(f) was to have been made, purchase an undivided participating interest in the Letter of Credit in an amount equal to its Revolving Credit Commitment Percentage of the amount of such Letter of Credit.  Each Revolving Credit Bank will immediately transfer to the Agent for the account of the Issuing Bank in immediately available funds the amount of its participation and upon receipt thereof the Issuing Bank will deliver to such Revolving Credit Bank a Letter of Credit participation certificate dated the date of receipt of such funds and in such amount.

 

(n)           If any Letter of Credit shall be outstanding at the Revolving Credit Maturity Date, the Borrower shall immediately cash collateralize such Letters of Credit or obtain replacement letters of credit for such Letter of Credit (and return to Issuing Bank such outstanding Letters of Credit), all in a manner satisfactory to the Issuing Bank.

 

(o)           In the event that the Total Revolving Credit Commitment is increased pursuant to §2.8, then the Letter of Credit Sublimit shall increase by an amount equal to ten percent (10%) of the increase in the Total Revolving Credit Commitment (rounded to the next lowest $100,000), subject to the terms hereof; provided that in no event shall the Letter of Credit Sublimit exceed $30,000,000.00.

 

  

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§2.10.             Swing Line Loans.

 

(a)           The Swing Line.  Subject to the terms and conditions set forth herein, the Swing Line Lender agrees, in reliance upon the agreements of the other Revolving Credit Banks set forth in this §2.10, to make loans (each such loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day prior to the Revolving Credit Maturity Date (or, if earlier, the date of termination of Revolving Credit Commitments pursuant to §12.3 hereof) in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Revolving Credit Commitment Percentage of the Outstanding Revolving Credit Loans and Letter of Credit Liabilities of the Revolving Credit Bank acting as Swing Line Lender, may exceed the amount of such Revolving Credit Bank’s Revolving Credit Commitment; provided, however, that after giving effect to any Swing Line Loan, (i) the Outstanding Revolving Credit Loans, Letter of Credit Liabilities and Swing Line Loans Outstanding shall not exceed the Total Revolving Credit Commitment, (ii) the aggregate Outstanding Revolving Credit Loans of any Revolving Credit Bank (other than the Swing Line Lender), plus such Revolving Credit Bank’s Revolving Credit Commitment Percentage of the Letter of Credit Liabilities, plus such Revolving Credit Bank’s Revolving Credit Commitment Percentage of the amount of all Swing Line Loans Outstanding shall not exceed such Revolving Credit Bank’s Revolving Credit Commitment, and (iii) the aggregate Unsecured Indebtedness of the Trust, the Borrowers and their Subsidiaries (including, without limitation, the Outstanding Revolving Credit Loans, Letter of Credit Liabilities, Swing Line Loans Outstanding and Term Loans Outstanding) shall not exceed the Borrowing Base Availability; provided, further, that the Borrower shall not use the proceeds of any Swing Line Loan to refinance any Outstanding Swing Line Loan; and provided, further, that in all events no Default or Event of Default shall have occurred and be continuing.  Notwithstanding anything to the contrary contained in this §2.10, the Swing Line Lender shall not be obligated to make any Swing Line Loan at a time when any other Revolving Credit Bank is a Defaulting Bank, unless the Swing Line Lender is satisfied that the participation therein will otherwise be fully allocated to the Revolving Credit Banks that are Non-Defaulting Banks consistent with §2.12(c) and the Defaulting Bank shall not participate therein, except to the extent the Swing Line Lender has entered into arrangements with the Borrower or such Defaulting Bank that are satisfactory to the Swing Line Lender in its good faith determination to eliminate the Swing Line Lender’s Fronting Exposure with respect to any such Defaulting Bank, including the delivery of cash collateral.  Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrower may borrow under this §2.10, prepay under §3 hereof, and reborrow under this §2.10.  Each Swing Line Loan shall be a Revolving Credit Base Rate Loan.  Immediately upon the making of a Swing Line Loan, each Revolving Credit Bank shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Revolving Credit Bank’s Revolving Credit Commitment Percentage times the amount of such Swing Line Loan.

 

(b)           Borrowing Procedures.  Each Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender and the Agent, which may be given by telephone. Each such notice must be received by the Swing Line Lender and the Agent not later than 1:00 p.m. (Cleveland time) on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $500,000, and (ii) the requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Agent of a written Swing Line Loan Notice, appropriately completed and signed by the Borrower.  Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Agent (by telephone or in writing) that the Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from the Agent (including at the request of any Revolving Credit Bank) prior to 2:00 p.m. (Cleveland time) on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the proviso to the first sentence of §2.10(a), or (B) that one or more of the applicable conditions specified in §11 is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. (Cleveland time) on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrower at its office by crediting the account of the Borrower on the books of the Swing Line Lender in immediately available funds.

 

  

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(c)           Refinancing of Swing Line Loans.

 

(i)           The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the Borrower (which hereby irrevocably authorizes the Swing Line Lender to so request on its behalf), that each Revolving Credit Bank make a Revolving Credit Base Rate Loan in an amount equal to such Revolving Credit Bank's Revolving Credit Commitment Percentage of the amount of Swing Line Loans then Outstanding.  Such request shall be made in writing (which written request shall be deemed to be a Loan Request for purposes hereof) and in accordance with the requirements of §2.5, without regard to the minimum and multiples specified therein for the principal amount of Revolving Credit Base Rate Loans, but subject to the unutilized portion of the Total Revolving Credit Commitments and the conditions set forth in §11.  The Swing Line Lender shall furnish the Borrower with a copy of the applicable Loan Request promptly after delivering such notice to the Agent.  Each Revolving Credit Bank shall make an amount equal to its Revolving Credit Commitment Percentage of the amount specified in such Loan Request available to the Agent in immediately available funds for the account of the Swing Line Lender at the Agent’s Head Office not later than 1:00 p.m. (Cleveland time) on the day specified in such Loan Request, whereupon, subject to §2.10(c)(ii), each Revolving Credit Bank that so makes funds available shall be deemed to have made a Revolving Credit Base Rate Loan to the Borrower in such amount.  The Agent shall remit the funds so received to the Swing Line Lender.

 

(ii)           If for any reason any Swing Line Loan cannot be refinanced by such a Revolving Credit Loan in accordance with §2.10(c)(i), the request for Base Rate Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Revolving Credit Banks fund its risk participation in the relevant Swing Line Loan and each Revolving Credit Bank’s payment to the Agent for the account of the Swing Line Lender pursuant to §2.10(c)(i) shall be deemed payment in respect of such participation.

 

(iii)          If any Revolving Credit Bank fails to make available to the Agent for the account of the Swing Line Lender any amount required to be paid by such Revolving Credit Bank pursuant to the foregoing provisions of this §2.10(c) by the time specified in §2.10(c)(i), the Swing Line Lender shall be entitled to recover from such Revolving Credit Bank (acting through the Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Effective Rate and a rate determined by the Swing Line Lender in accordance with banking industry rules on interbank compensation.  A certificate of the Swing Line Lender submitted to any Revolving Credit Bank (through the Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

 

  

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(iv)         Each Revolving Credit Bank’s obligation to make Revolving Credit Loans or to purchase and fund risk participations in Swing Line Loans pursuant to this §2.10(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Revolving Credit Bank may have against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default or Event of Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Revolving Credit Bank’s obligation to make Revolving Credit Loans pursuant to this §2.10(c) is subject to the conditions set forth in §11.  No such funding of risk participations shall relieve or otherwise impair the obligation of the Borrower to repay Swing Line Loans, together with interest as provided herein.  Any portions of a Swing Line Loan not so purchased or converted may, subject to the cure period in clause (a) of the definition of Defaulting Bank, be treated by the Agent and Swing Line Lender as a Revolving Credit Loan which was not funded by the non-purchasing Revolving Credit Bank, thereby making such Revolving Credit Bank a Defaulting Bank.  Each Swing Line Loan, once so sold or converted, shall cease to be a Swing Line Loan for the purposes of this Agreement, but shall be a Revolving Credit Loan made by each Revolving Credit Bank under its Revolving Credit Commitment.

 

(v)           The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the date five (5) Business Days after such Swing Line Loan is made and (ii) the Revolving Credit Maturity Date.

 

(d)           Repayment of Participations.

 

(i)           At any time after any Revolving Credit Bank has purchased and funded a risk participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Revolving Credit Bank its Revolving Credit Commitment Percentage of such payment (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Revolving Credit Bank’s risk participation was funded) in the same funds as those received by the Swing Line Lender.

 

(e)           Interest for Account of Swing Line Lender.  The Swing Line Lender shall be responsible for invoicing the Borrower for interest on the Swing Line Loans.  Until each Revolving Credit Bank funds its Revolving Credit Base Rate Loan or risk participation pursuant to this §2.10 to refinance such Revolving Credit Bank’s Revolving Credit Commitment Percentage of any Swing Line Loan, interest in respect of such Revolving Credit Commitment Percentage shall be solely for the account of the Swing Line Lender.

 

(f)            Payments Directly to Swing Line Lender.  The Borrower shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

 

(g)           Swing Line Note.  At the Swing Line Lender’s option, the Swing Line Loans shall be evidenced by a separate promissory note of the Borrower in substantially the form of Exhibit C hereto (the “Swing Line Note”), dated the date of this Agreement and completed with appropriate insertions.  The Swing Line Note shall be payable to the order of the Swing Line Lender in the principal face amount equal to the Swing Line Loan and shall be subject to mandatory prepayment in the amounts and under the circumstances set forth in §3 of this Agreement, and may be prepaid in whole or from time to time in part, all as set forth in §3 of this Agreement.  The Borrower irrevocably authorizes the Swing Line Lender to make or cause to be made, at or about the time of the Drawdown Date of any Swing Line Loan or at the time of receipt of any payment of principal thereof, an appropriate notation on the Swing Line Lender’s Record reflecting the making of such Swing Line Loan or (as the case may be) the receipt of such payment.  The amount of the Swing Line Loans Outstanding set forth on the Swing Line Lender’s Record shall be prima facie evidence of the principal amount thereof owing and unpaid to the Swing Line Lender, but the failure to record, or any error in so recording, any such amount on the Swing Line Lender’s Record shall not limit or otherwise affect the obligations of the Borrower hereunder or under the Swing Line Note to make payments of principal of or interest on any Swing Line Note when due.

 

  

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(h)           Increase of Commitment.  In the event that the Total Revolving Credit Commitment is increased pursuant to §2.8, then the Swing Line Sublimit shall increase by an amount equal to ten percent (10%) of the increase in the Total Revolving Credit Commitment (rounded to the next lowest $100,000), subject to the terms hereof; provided that in no event shall the Swing Line Sublimit exceed the Swing Line Lender’s Revolving Credit Commitment.  As a condition to such increase, Borrower shall deliver to the Swing Line Lender a replacement Swing Line Note, and execute and deliver such other amendments to the Loan Documents as may be reasonably required by Swing Line Lender or Agent (it being acknowledged that the requirements of this sentence may be satisfied in connection with and as a part of the satisfaction of the requirements of §2.8(b)(iv) with respect to the corresponding increase of the Total Revolving Credit Commitment).

 

(i)             Swing Line Lender.  The Swing Line Lender shall be deemed a “Revolving Credit Bank” for all purposes under this Agreement.

 

§2.11.             Evidence of Debt.  The indebtedness of the Borrower resulting from the Loans made by each Bank from time to time shall be evidenced by one or more accounts or records maintained by such Bank and the Agent in the ordinary course of business, including, without limitation, the amounts of principal and interest payable and paid to such Bank from time to time hereunder.  The Borrower hereby irrevocably authorizes Agent and the Banks to make, or cause to be made, at or about the time of the Drawdown Date of any Loan or at the time of receipt of any payment thereof, an appropriate notation on Agent’s and the Bank’s records reflecting the making of such Loan or (as the case may be) the receipt of such payment.  The Agent shall maintain accounts or records in accordance with its usual practice in which it shall record:  (i) the date and the amount of each Loan made hereunder, the Type of Loan and, if appropriate, the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Bank hereunder, and (iii) the amount of any sum received by the Agent hereunder from the Borrower and each Bank’s share thereof.  The accounts or records maintained by the Agent and each Bank shall be prima facie evidence of the existence and amounts of the Obligations recorded therein and shall be conclusive absent manifest error of the amount of the Loans made by the Banks to the Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder or under the Notes, if any, to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Bank and the accounts and records of the Agent in respect of such matters, the accounts and records of the Agent shall control in the absence of manifest error.  The Borrower agrees that upon the request of any Bank made through the Agent (whether for purposes of pledge, enforcement or otherwise), the Borrower shall promptly execute and deliver to such Bank (through the Agent) a Revolving Credit Note, a Term Loan Note and/or a Swing Line Loan Note, as applicable, payable to the order of such Bank, which shall evidence such Bank’s Loans in addition to such accounts or records.  Each Bank may attach schedules to its Notes and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.  All references to Notes in the Loan Documents shall mean Notes, if any, to the extent issued hereunder.  There shall not be deemed to have occurred, and there has not otherwise occurred, any payment, satisfaction or novation of the indebtedness evidenced by the accounts, records, “Revolving Credit Notes” or “Term Loan Notes”, as applicable, as defined in the Prior Credit Agreement, which indebtedness is instead allocated among the Revolving Credit Banks and Term Loan Banks as of the date hereof, as applicable, in accordance with their respective Revolving Credit Commitment Percentages and Term Loan Commitment Percentages.  On the Closing Date, the Revolving Credit Banks and Term Loan Banks shall make adjustments among themselves as to the outstanding balances of their Revolving Credit Loans and Term Loans so that the outstanding Revolving Credit Loans and Term Loans are consistent with their Revolving Credit Commitment Percentages and Term Loan Commitment Percentages, respectively.

 

  

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§2.12.             Defaulting Banks.

 

(a)           If for any reason any Bank shall be a Defaulting Bank, then, in addition to the rights and remedies that may be available to the Agent or the Borrower under this Agreement or applicable law, such Defaulting Bank’s right to participate in the administration of the Loans, this Agreement and the other Loan Documents, including without limitation, any right to vote in respect of, to consent to or to direct any action or inaction of the Agent or to be taken into account in the calculation of the Majority Banks, Majority Revolving Credit Banks, Majority Term Loan Banks, Required Banks or all of the Banks, shall, subject to §27, be suspended during the pendency of such failure or refusal.  If a Bank is a Defaulting Bank because it has failed to make timely payment to the Agent of any amount required to be paid to the Agent hereunder (without giving effect to any notice or cure periods), in addition to other rights and remedies which the Agent or the Borrower may have under the immediately preceding provisions or otherwise, the Agent shall be entitled (i) to collect interest from such Defaulting Bank on such delinquent payment for the period from the date on which the payment was due until the date on which the payment is made at the Federal Funds Effective Rate, (ii) to withhold or setoff and to apply in satisfaction of the defaulted payment and any related interest, any amounts otherwise payable to such Defaulting Bank under this Agreement or any other Loan Document and (iii) to bring an action or suit against such Defaulting Bank in a court of competent jurisdiction to recover the defaulted amount and any related interest.  Any amounts received by the Agent in respect of a Defaulting Bank’s Loans shall be applied as set forth in §2.12(d).

 

(b)           Any Non-Defaulting Bank may, but shall not be obligated to, in its sole discretion, acquire all or a portion of a Defaulting Bank’s Commitments.  Any Bank desiring to exercise such right shall give written notice thereof to the Agent and the Borrower no sooner than two (2) Business Days and not later than five (5) Business Days after such Defaulting Bank became a Defaulting Bank.  If more than one Bank exercises such right, each such Bank shall have the right to acquire an amount of such Defaulting Bank’s Commitments in proportion to the Commitments of the other Banks exercising such right.  If after such 5th Business Day, the Banks have not elected to purchase all of the Commitments of such Defaulting Bank, then the Borrower (so long as no Default or Event of Default exists) or the Majority Banks may, by giving written notice thereof to the Agent, such Defaulting Bank and the other Banks, demand that such Defaulting Bank assign its Commitments to an eligible assignee subject to and in accordance with the provisions of §18.1 for the purchase price provided for below.  No party hereto shall have any obligation whatsoever to initiate any such replacement or to assist in finding an eligible assignee.  Upon any such purchase or assignment, and any such demand with respect to which the conditions specified in §18.1 have been satisfied, the Defaulting Bank’s interest in the Loans and its rights hereunder (but not its liability in respect thereof or under the Loan Documents or this Agreement to the extent the same relate to the period prior to the effective date of the purchase) shall terminate on the date of purchase, and the Defaulting Bank shall promptly execute all documents reasonably requested to surrender and transfer such interest to the purchaser or assignee thereof, including an appropriate Assignment and Acceptance Agreement.  The purchase price for the Commitments of a Defaulting Bank shall be equal to the amount of the principal balance of the Loans outstanding and owed by the Borrower to the Defaulting Bank plus any accrued but unpaid interest thereon and accrued but unpaid fees.  Prior to payment of such purchase price to a Defaulting Bank, the Agent shall apply against such purchase price any amounts retained by the Agent pursuant to §2.12(d).

 

  

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(c)           During any period in which there is a Defaulting Bank, all or any part of such Defaulting Bank’s obligation to acquire, refinance or fund participations in Letters of Credit pursuant to §2.9 or Swing Line Loans pursuant to §2.10 shall be reallocated among the Revolving Credit Banks that are Non-Defaulting Banks in accordance with their respective Revolving Credit Commitment Percentages (computed without giving effect to the Revolving Credit Commitment of such Defaulting Bank; provided that (i) each such reallocation shall be given effect only if, at the date of such reallocation, no Default or Event of Default exists, (ii) the conditions set forth in §10 and §11 are satisfied at the time of such reallocation (and, unless the Borrower shall have notified the Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at the time), (iii) the representations and warranties in the Loan Documents shall be true and correct in all material respects on and as of the date of such reallocation with the same effect as though made on and as of such date, and (iv) the aggregate obligation of each Revolving Credit Bank that is a Non-Defaulting Bank to acquire, refinance or fund participations in Letters of Credit and Swing Line Loans shall not exceed the positive difference, if any, of (A) the Revolving Credit Commitment of that Non-Defaulting Bank minus (B) the sum of (1) the aggregate outstanding principal amount of the Revolving Credit Loans of that Revolving Credit Bank plus (2) such Revolving Credit Bank’s pro rata portion in accordance with its Revolving Credit Commitment Percentage of outstanding Letter of Credit Liabilities and Swing Line Loans.  No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Bank arising from that Bank having become a Defaulting Bank, including any claim of a Non-Defaulting Bank as a result of such Non-Defaulting Bank’s increased exposure following such reallocation.

 

  

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(d)           Any payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Bank (whether voluntary or mandatory, at maturity, or otherwise, and including any amounts made available to the Agent for the account of such Defaulting Bank pursuant to §13), shall be applied at such time or times as may be determined by the Agent as follows:  first, to the payment of any amounts owing by such Defaulting Bank to the Agent (other than with respect to Letter of Credit Liabilities) hereunder; second, to the payment of any amounts owing by such Defaulting Bank to the Issuing Bank (with respect to Letter of Credit Liabilities) and/or the Swing Line Lender hereunder; third, if so determined by the Agent or requested by the Issuing Bank or the Swing Line Lender, to be held as cash collateral for future funding obligations of such Defaulting Bank of any participation in any Letter of Credit or Swing Line Loan; 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 such Defaulting Bank has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; fifth, if so determined by the Agent and the Borrower, to be held in a non-interest bearing deposit account and released pro rata in order to (x) satisfy obligations of such Defaulting Bank to fund Loans or participations under this Agreement and (y) be held as cash collateral for future funding obligations of such Defaulting Bank of any participation in any Letter of Credit or Swing Line Loan; sixth, to the payment of any amounts owing to the Agent or the Banks (including the Issuing Bank and the Swing Line Lender) as a result of any judgment of a court of competent jurisdiction obtained by the Agent or any Bank (including the Issuing Bank and the Swing Line Lender) against such Defaulting Bank as a result of such Defaulting Bank’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 such Defaulting Bank as a result of such Defaulting Bank’s breach of its obligations under this Agreement; and eighth, to such Defaulting Bank or as otherwise directed by a court of competent jurisdiction; provided that if (i) such payment is a payment of the principal amount of any Revolving Credit Loans or funded participations in Letters of Credit or Swing Line Loans in respect of which such Defaulting Bank has not fully funded its appropriate share and (ii) such Revolving Credit Loans or funded participations in Letters of Credit or Swing Line Loans were made at a time when the conditions set forth in §10 and §11, to the extent required by this Agreement, were satisfied or waived, such payment shall be applied solely to pay the Revolving Credit Loans of, and funded participations in Letters of Credit or Swing Line Loans owed to, all Non-Defaulting Banks that are Revolving Credit Banks on a pro rata basis until such time as all Revolving Credit Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans are held by the Revolving Credit Banks pro rata in accordance with their Revolving Credit Commitment Percentages without regard to §2.12(c), prior to being applied to the payment of any Revolving Credit Loans of, or funded participations in Letters of Credit or Swing Line Loans owed to, such Defaulting Bank.  Any payments, prepayments or other amounts paid or payable to a Defaulting Bank that are applied (or held) to pay amounts owed by a Defaulting Bank or to post cash collateral pursuant to this §2.12(d) shall be deemed paid to and redirected by such Defaulting Bank, and each Bank irrevocably consents hereto, and to the extent allocated to the repayment of principal of the Loan, shall not be considered outstanding principal under this Agreement.

 

  

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(e)           Within five (5) Business Days of demand by the Issuing Bank or Swing Line Lender from time to time, the Borrower shall deliver to the Agent for the benefit of the Issuing Bank and the Swing Line Lender cash collateral or other credit support acceptable to the Issuing Bank or Swing Line Lender, as applicable, in an amount sufficient to cover all Fronting Exposure with respect to the Issuing Bank and Swing Line Lender (after giving effect to §2.9(a), §2.10(a) and §2.12(c)) on terms satisfactory to the Issuing Bank and/or Swing Line Lender in its good faith determination (and such cash collateral shall be in Dollars).  Any such cash collateral shall be deposited in the Collateral Account as collateral (solely for the benefit of the Issuing Bank and/or the Swing Line Lender) for the payment and performance of each Defaulting Bank’s pro rata portion in accordance with their respective Revolving Credit Commitment Percentages of outstanding Letter of Credit Liabilities and Swing Line Loans.  Moneys in the Collateral Account deposited pursuant to this section shall be applied by the Agent to reimburse the Issuing Bank and/or the Swing Line Lender immediately for each Defaulting Bank’s pro rata portion in accordance with their respective Revolving Credit Commitment Percentages of any funding obligation with respect to a Letter of Credit or Swing Line Loan which has not otherwise been reimbursed by the Borrower or such Defaulting Bank.

 

(f)           (i)            Each Revolving Credit Bank that is a Defaulting Bank shall not be entitled to receive any Facility Fee or Unused Fee pursuant to §2.3 for any period during which that Revolving Credit Bank is a Defaulting Bank.

 

(i)            Each Revolving Credit Bank that is a Defaulting Bank shall not be entitled to receive Letter of Credit fees pursuant to §2.9(i) for any period during which that Revolving Credit Bank is a Defaulting Bank.

 

(ii)           With respect to any Unused Fee, Facility Fee or Letter of Credit fees not required to be paid to any Defaulting Bank pursuant to clause (i) or (ii) above, the Borrower shall (x) pay to each Non-Defaulting Bank that is a Revolving Credit Bank that portion of any such fee otherwise payable to such Defaulting Bank with respect to such Defaulting Bank’s participation in Letter of Credit Liabilities or Swing Line Loans that has been reallocated to such Non-Defaulting Bank pursuant to §2.12(c), (y) pay to the Issuing Bank and Swing Line Lender the amount of any such fee otherwise payable to such Defaulting Bank to the extent allocable to the Issuing Bank’s or Swing Line Lender’s Fronting Exposure to such Defaulting Bank and (z) not be required to pay any remaining amount of any such fee.

 

(g)           If the Borrower (so long as no Default or Event of Default exists) and the Agent agree in writing in their sole discretion that a Defaulting Bank should no longer be deemed to be a Defaulting Bank, the Agent will so notify the parties hereto, whereupon as of the date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Bank will, to the extent applicable, purchase that portion of outstanding Loans of the other Banks or take such other actions as the Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans to be held on a pro rata basis by the Banks in accordance with their Commitments (without giving effect to §2.12(c)), whereupon such Bank will cease to be a Defaulting Bank; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Bank was a Defaulting Bank; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Bank to Bank will constitute a waiver or release of any claim of any party hereunder arising from such Bank’s having been a Defaulting Bank.

 

  

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§3.

	
REPAYMENT OF THE LOANS.

 

§3.1.                Stated Maturity.  The Borrower promises to pay on the Revolving Credit Maturity Date and there shall become absolutely due and payable on the Revolving Credit Maturity Date all of the Revolving Credit Loans, Swing Line Loans and Letter of Credit Liabilities outstanding on such date, together with any and all accrued and unpaid interest thereon.  The Borrower promises to pay on the Term Loan Maturity Date and there shall become absolutely due and payable on the Term Loan Maturity Date all of the Term Loans Outstanding on such date, together with any and all accrued and unpaid interest thereon.

 

§3.2.                Mandatory Prepayments.

 

(a)           If at any time the sum of the aggregate of the Outstanding Revolving Credit Loans, the Outstanding Swing Line Loans and the Letter of Credit Liabilities exceeds the Total Revolving Credit Commitment, the Borrower shall immediately upon demand pay the amount of such excess to the Agent first for the account of the Swing Line Lender with respect to the amount of any Outstanding Swing Line Loans and then for the respective accounts of the Revolving Credit Banks for application to the Revolving Credit Loans.

 

(b)           [Intentionally Omitted.]

 

(c)           If at any time the sum of the aggregate of the Outstanding Unsecured Indebtedness of the Trust, the Borrower and their Subsidiaries (including, without limitation, the Outstanding Revolving Credit Loans, the Outstanding Swing Line Loans, the Outstanding Term Loans and the Letter of Credit Liabilities) exceed the Borrowing Base Availability, the Borrower shall immediately upon demand pay the amount of such excess to the Agent to be applied first to the Swing Line Lender with respect to the amount of any Outstanding Swing Line Loans, then for the respective accounts of the Revolving Credit Banks for application to the Revolving Credit Loans, and then for the account of the Term Loan Banks for application to the Term Loans.

 

§3.3.                Optional Prepayments.  The Borrower shall have the right, at its election, to prepay the outstanding amount of the applicable Loans, as a whole or in part, at any time without penalty or premium; provided, that if any full or partial prepayment of the outstanding amount of any LIBOR Rate Loan is made other than on the last day of the Interest Period relating thereto, such prepayment shall be accompanied by the payment of any amounts due pursuant to §4.8.  The Borrower shall give the Agent, no later than 10:00 a.m., Cleveland time, at least five (5) Business Days’ prior written notice of any prepayment pursuant to this §3.3, in each case specifying the proposed date of payment of Loans and the principal amount to be paid; provided that no prior notice shall be required in connection with a prepayment of Swing Line Loans.

 

§3.4.                Partial Prepayments.  Each prepayment under §3.2 shall be applied to the applicable Loan as provided therein and, in the absence of instruction by the Borrower, first to the principal of Base Rate Loans and then to the principal of LIBOR Rate Loans.  Each partial prepayment of the Loans under §3.3 shall be in a minimum amount of $100,000, shall be accompanied by the payment of accrued interest on the principal prepaid to the date of payment and, after payment of such interest, shall be applied, in the absence of instruction by the Borrower, first to the principal of any Outstanding Swing Line Loans, then to the principal of the Revolving Credit Loans and then to the principal of the Term Loans, and within each category, first to the principal of the Base Rate Loans and then to the principal of the LIBOR Rate Loans.

 

  

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§3.5.                Effect of Prepayments.  Amounts of the Revolving Credit Loans repaid or prepaid under §3.2 or §3.3 may be reborrowed as provided in §2.  Any portion of the Term Loans that is repaid or prepaid may not be reborrowed.

 

	
§4.

	
CERTAIN GENERAL PROVISIONS.

 

§4.1.                Conversion Options.

 

(a)           The Borrower may elect from time to time to convert any of its outstanding Revolving Credit Loans or Term Loans to a Revolving Credit Loan or Term Loan, respectively, of another Type and such Revolving Credit Loan or Term Loan shall thereafter bear interest as a Base Rate Loan or a LIBOR Rate Loan, as applicable; provided that (i) with respect to any such conversion of a LIBOR Rate Loan to a Base Rate Loan, the Borrower shall give the Agent at least one (1) Business Day’s prior written notice of such election, and such conversion shall only be made on the last day of the Interest Period with respect to such LIBOR Rate Loan; (ii) with respect to any such conversion of a Base Rate Loan to a LIBOR Rate Loan the Borrower shall give the Agent at least three (3) LIBOR Business Days’ prior written notice of such election and the Interest Period requested for such Loan, the principal amount of the Loan so converted shall be in a minimum aggregate amount of $500,000 or an integral multiple of $100,000 in excess thereof and, after giving effect to the making of such Loan there shall be (A) no more than twelve (12) Revolving Credit LIBOR Rate Loans outstanding at any one time and (B) no more than ten (10) Term LIBOR Rate Loans outstanding at any one time; and (iii) no Loan may be converted into a LIBOR Rate Loan when any Default or Event of Default has occurred and is continuing.  All or any part of the outstanding Revolving Credit Loans or Term Loans of any Type may be converted as provided herein, provided that no partial conversion shall result in a Revolving Credit Base Rate Loan or a Term Base Rate Loan in an aggregate principal amount of less than $500,000 or a Revolving Credit LIBOR Rate Loan or a Term LIBOR Rate Loan in an aggregate principal amount of less than $500,000 and that the aggregate principal amount of each Loan shall be in an integral multiple of $100,000.  On the date on which such conversion is being made, each Bank shall take such action as is necessary to transfer its Commitment Percentage of such Loans to its Domestic Lending Office or its LIBOR Lending Office, as the case may be.  Each Conversion Request relating to the conversion of a Base Rate Loan to a LIBOR Rate Loan shall be irrevocable by the Borrower.

 

(b)           Any Revolving Credit Loan or Term Loan may be continued as such Type upon the expiration of an Interest Period with respect thereto by compliance by the Borrower with the terms of §4.1(a); provided that no LIBOR Rate Loan may be continued as such when any Default or Event of Default has occurred and is continuing, but shall be automatically converted to a Base Rate Loan on the last day of the Interest Period relating thereto ending during the continuance of any Default or Event of Default.

 

(c)           In the event that the Borrower does not notify the Agent of its election hereunder with respect to any Loan to it, such Loan shall be automatically converted to a Base Rate Loan at the end of the applicable Interest Period.

 

  

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§4.2.                Commitment and Syndication Fee.  The Borrower shall pay to KeyBank and Arranger certain fees for services rendered or to be rendered in connection with the Loan as provided pursuant to the Agreement Regarding Fees dated of even date herewith between the Borrower and KeyBank.

 

§4.3.                Agent’s Fee.  The Borrower will pay to Agent, for the Agent’s own account, an annual Agent’s Fee calculated at the rate, and payable at such times as are, set forth in the Agreement Regarding Fees referred to in §4.2.

 

§4.4.                Funds for Payments.

 

(a)           All payments of principal, interest, unused facility fees, Agent’s fees, Letter of Credit fees, closing fees and any other amounts due hereunder or under any of the other Loan Documents shall be made to the Agent, for the respective accounts of the Banks and the Agent, as the case may be, at the Agent’s Head Office, not later than 1:00 p.m. (Cleveland time) on the day when due, in each case in lawful money of the United States in immediately available funds.  The Agent is hereby authorized to charge the accounts of the Borrower with KeyBank designated by the Borrower, on the dates when the amount thereof shall become due and payable, with the amounts of the principal of and interest on the Loans and all fees, charges, expenses and other amounts owing to the Agent and/or the Banks under the Loan Documents.

 

(b)           All payments by the Borrower hereunder and under any of the other Loan Documents shall be made without setoff or counterclaim and free and clear of and without deduction for any taxes (other than any Excluded FATCA Tax), levies, imposts, duties, charges, fees, deductions, withholdings, compulsory loans, restrictions or conditions of any nature now or hereafter imposed or levied by any jurisdiction or any political subdivision thereof or taxing or other authority therein unless the Borrower is compelled by law to make such deduction or withholding.  If any such obligation is imposed upon the Borrower with respect to any amount payable by them hereunder or under any of the other Loan Documents, the Borrower will pay to the Agent, for the account of the Banks or (as the case may be) the Agent, on the date on which such amount is due and payable hereunder or under such other Loan Document, such additional amount in Dollars as shall be necessary to enable the Banks or the Agent to receive the same net amount which the Banks or the Agent would have received on such due date had no such obligation been imposed upon the Borrower.  The Borrower will deliver promptly to the Agent certificates or other valid vouchers for all taxes or other charges deducted from or paid with respect to payments made by the Borrower hereunder or under such other Loan Document.

 

  

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(c)           Each Bank shall provide the Borrower and Agent with such duly executed form(s) or statement(s) which may, from time to time, be prescribed by law and, which, pursuant to applicable provisions of (i) an income tax treaty between the United States and the country of residence of such Bank, (ii) the Code, or (iii) any applicable rules or regulations in effect under (i) or (ii) above, indicates the withholding status of such Bank; provided that nothing herein (including without limitation the failure or inability to provide such form or statement) shall relieve the Borrower of its obligations under §4.4(b).  Each Bank shall deliver photocopies of such forms or other appropriate certifications on or before the date that any such form shall expire or become obsolete and after the occurrence of any event requiring a change in the most recent form delivered to the Borrower for the Agent.  Any Bank which sells a participation in any of its Commitments shall be required to obtain such forms from any participant, and shall be required to withhold any amounts from such participant as required by the Code or Treasury Regulations issued pursuant thereto.  If any governmental authority asserts that the Agent or Borrower (as to Borrower, with respect to Excluded FATCA Taxes only) did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account of any Bank, such Bank shall indemnify the Agent and/or Borrower (as to Borrower, with respect to Excluded FATCA Taxes only) therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Agent or by the Borrower (as to Borrower, with respect to Excluded FATCA Taxes only) under this section, and costs and expenses (including all reasonable fees and disbursements of any law firm or other external counsel and the allocated cost of internal legal services and all disbursements of internal counsel) of the Agent and Borrower (as to Borrower, with respect to Excluded FATCA Taxes only).  The obligation of the Banks under this section shall survive the termination of the Commitments, repayment of all Obligations and all the resignation or replacement of the Agent.  Without limitation of §4.4(b), if a payment made to a Bank under any Loan Document would be subject to United States federal withholding tax imposed by FATCA if such Bank were to fail to comply with the applicable reporting and document provision requirements of FATCA (including those contained in Section 1741(b) or 1472(b) of the Code, as applicable), such Bank shall deliver to the Borrower and the Agent, at the time or times prescribed by law and at such time or times reasonably requested by either, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower and/or the Agent as may be necessary for the Borrower and the Agent to comply with their obligations under FATCA, to determine that such Bank has or has not complied with such Bank obligations under FATCA and, as necessary, to determine the amount to deduct and withhold from such payment.

 

§4.5.                Computations.  All computations of interest on the Loans and of other fees to the extent applicable shall be based on a 360-day year and paid for the actual number of days elapsed.  Except as otherwise provided in the definition of the term “Interest Period” with respect to LIBOR Rate Loans, whenever a payment hereunder or under any of the other Loan Documents becomes due on a day that is not a Business Day, the due date for such payment shall be extended to the next succeeding Business Day, and interest shall accrue during such extension.  The outstanding amount of the Loans and Letter of Credit Liabilities as reflected on the records of the Agent from time to time shall be considered prima facie evidence of such amount.

 

§4.6.                Suspension of LIBOR Rate Loans.  In the event that, prior to the commencement of any Interest Period relating to any LIBOR Rate Loan, the Agent shall reasonably determine that adequate and reasonable methods do not exist for ascertaining the LIBOR Rate for such Interest Period, or the Agent shall reasonably determine that the LIBOR Rate will not adequately and fairly reflect the cost to the Banks of making or maintaining LIBOR Rate Loans for such Interest Period, the Agent shall forthwith give notice of such determination (which shall be conclusive and binding on the Borrower and the Banks) to the Borrower and the Banks.  In such event (a) any Loan Request with respect to LIBOR Rate Loans shall be automatically withdrawn and shall be deemed a request for Base Rate Loans and (b) each LIBOR Rate Loan will automatically, on the last day of the then current Interest Period thereof, become a Base Rate Loan, and the obligations of the Banks to make LIBOR Rate Loans shall be suspended until the Agent determines that the circumstances giving rise to such suspension no longer exist, whereupon the Agent shall so notify the Borrower and the Banks.

 

  

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§4.7.                Illegality.  Notwithstanding any other provisions herein, if any present or future law, regulation, treaty or directive or the interpretation or application thereof shall make it unlawful, or any central bank or other governmental authority having jurisdiction over a Bank or its LIBOR Lending Office shall assert that it is unlawful, for any Bank to make or maintain LIBOR Rate Loans, such Bank shall forthwith give notice of such circumstances to the Agent and the Borrower and thereupon (a) the commitment of the Banks to make LIBOR Rate Loans or convert Loans of another type to LIBOR Rate Loans shall forthwith be suspended and (b) the LIBOR Rate Loans then outstanding shall be converted automatically to Base Rate Loans on the last day of each Interest Period applicable to such LIBOR Rate Loans or within such earlier period as may be required by law.

 

§4.8.                Additional Interest.  If any LIBOR Rate Loan or any portion thereof is repaid, reapportioned as a result of an increase in the Total Revolving Credit Commitment as contemplated in §2.8(c), or converted to a Base Rate Loan for any reason on a date which is prior to the last day of the Interest Period applicable to such LIBOR Rate Loan, or if repayment of the Loans has been accelerated as provided in §12.1, the Borrower will pay to the Agent upon demand (and, if any payment is required as a result of an increase in the Total Revolving Credit Commitment, prior to the effectiveness of any such increase) for the account of the Banks in accordance with their respective Commitment Percentages, in addition to any amounts of interest otherwise payable hereunder, any amounts required to compensate the Banks for any losses, costs or expenses which may reasonably be incurred as a result of such payment, reapportionment or conversion.

 

§4.9.                Additional Costs, Etc.  Notwithstanding anything herein to the contrary, if any present or future applicable law, or any amendment or modification of present applicable law, which expression, as used herein, includes statutes, rules and regulations thereunder and legally binding interpretations thereof by any competent court or by any governmental or other regulatory body or official with appropriate jurisdiction charged with the administration or the interpretation thereof and requests, directives, instructions and notices at any time or from time to time hereafter made upon or otherwise issued to any Bank or the Agent by any central bank or other fiscal, monetary or other authority (whether or not having the force of law), shall:

 

(a)           subject any Bank or the Agent to any tax, levy, impost, duty, charge, fee, deduction or withholding of any nature with respect to this Agreement, the other Loan Documents, such Bank’s Commitment, the Loans or the Letters of Credit (other than taxes based upon or measured by the income or profits or gross receipts of such Bank or the Agent), or

 

(b)           materially change the basis of taxation (except for changes in taxes on income or profits) of payments to any Bank of the principal of or the interest on any Loans or any other amounts payable to any Bank under this Agreement or the other Loan Documents, or

 

(c)           impose or increase or render applicable any special deposit, reserve, assessment, liquidity, capital adequacy or other similar requirements (whether or not having the force of law) against assets held by, or deposits in or for the account of, or loans by, or commitments of an office of any Bank, or

 

  

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(d)           impose on any Bank or the Agent any other conditions or requirements with respect to this Agreement, the other Loan Documents, the Loans, the Letters of Credit, such Bank’s Commitment, or any class of loans or commitments of which any of the Loans or such Bank’s Commitment forms a part; and the result of any of the foregoing is

 

(i)           to increase the cost to any Bank of making, funding, issuing, renewing, extending or maintaining any of the Loans, the Letters of Credit or such Bank’s Commitment, or

 

(ii)           to reduce the amount of principal, interest or other amount payable to such Bank or the Agent hereunder on account of such Bank’s Commitment or any of the Loans or the Letters of Credit, or

 

(iii)          to require such Bank or the Agent to make any payment or to forego any interest or other sum payable hereunder, the amount of which payment or foregone interest or other sum is calculated by reference to the gross amount of any sum receivable or deemed received by such Bank or the Agent from the Borrower hereunder,

 

then, and in each such case, the Borrower will within fifteen (15) days after demand made by such Bank or (as the case may be) the Agent at any time and from time to time and as often as the occasion therefor may arise, pay to such Bank or the Agent such additional amounts as such Bank or the Agent shall determine in good faith to be sufficient to compensate such Bank or the Agent for such additional cost, reduction, payment or foregone interest or other sum.  Each Bank and the Agent in determining such amounts may use any reasonable averaging and attribution methods, generally applied by such Bank or the Agent.  For purposes of §4.9 and §4.10, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, publications, orders, guidelines and directives thereunder or issued in connection therewith and 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 be deemed to have been adopted and gone into effect after the date hereof regardless of when adopted, enacted or issued.

 

§4.10.             Capital Adequacy.  If after the date hereof any Bank determines that (a) the adoption of or change in any law, rule, regulation or guideline regarding capital requirements for banks or bank holding companies or any change in the interpretation or application thereof by any governmental authority charged with the administration thereof, or (b) compliance by such Bank or its parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of reducing the return on such Bank’s or such holding company’s capital as a consequence of such Bank’s commitment to make Loans or participate in Swing Line Loans or Letters of Credit hereunder to a level below that which such Bank or holding company could have achieved but for such adoption, change or compliance (taking into consideration such Bank’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by such Bank to be material, then such Bank may notify the Borrower thereof.  The Borrower agrees to pay to such Bank the amount of such reduction in the return on capital as and when such reduction is determined, upon presentation by such Bank of a statement of the amount and setting forth such Bank’s calculation thereof.  In determining such amount, such Bank may use any reasonable averaging and attribution methods.

 

  

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§4.11.             Indemnity of Borrower.  The Borrower agrees to indemnify each Bank and to hold each Bank harmless from and against any loss, cost or expense that such Bank may sustain or incur as a consequence of (a) default by the Borrower in payment of the principal amount of or any interest on any LIBOR Rate Loans as and when due and payable, including any such loss or expense arising from interest or fees payable by such Bank to lenders of funds obtained by it in order to maintain its LIBOR Rate Loans, or (b) default by the Borrower in making a borrowing or conversion after the Borrower has given (or is deemed to have given) a Loan Request or a Conversion Request.

 

§4.12.             Interest on Overdue Amounts; Late Charge.  Overdue principal on the Loans and all other overdue amounts payable hereunder or under any of the other Loan Documents (other than interest on the Loans) shall, following the expiration of any applicable cure period expressly provided for in this Agreement, bear interest payable on demand at a rate per annum equal to two percent (2.0%) above the rate that would otherwise be applicable at such time until such amount shall be paid in full (after as well as before judgment).  Overdue interest on the Loans shall, following the expiration of any applicable cure period expressly provided for in this Agreement, bear interest payable on demand at a rate equal to the lesser of (i) a per annum rate equal to two percent (2.0%) above the rate that would otherwise be applicable at such time or (ii) the maximum annual rate of interest permitted by applicable law until such amount shall be paid in full (after as well as before judgment), provided that in no event shall such rate exceed ten percent (10%) per annum.  After the occurrence and during the continuance of an Event of Default, the per diem fee payable with respect to Letters of Credit shall be increased to a rate equal to two percent (2.0%) above the Letter of Credit fee that would otherwise be applicable to such time, or if any of such amounts shall exceed the maximum rate permitted by law, then at the maximum rate permitted by law.  In addition, the Borrower shall pay a late charge equal to four percent (4.0%) of any amount of interest and/or principal payable on the Loans or any other amounts payable hereunder or under the Loan Documents, which is not paid by the Borrower within fifteen (15) days after the same shall become due and payable.

 

§4.13.             Certificate.  A certificate setting forth any amounts payable pursuant to §4.8, §4.9, §4.10, §4.11 or §4.12 and a brief explanation of such amounts which are due, submitted by any Bank or the Agent to the Borrower, shall be conclusive in the absence of manifest error.

 

§4.14.             Limitation on Interest.  Notwithstanding anything in this Agreement to the contrary, all agreements between the Borrower and the Banks and the Agent, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by the Banks exceed the maximum amount permissible under applicable law.  If, from any circumstance whatsoever, interest would otherwise be payable to the Banks in excess of the maximum lawful amount, the interest payable to the Banks shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Banks shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations of the Borrower and to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of the Obligations of the Borrower, such excess shall be refunded to the Borrower.  All interest paid or agreed to be paid to the Banks shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal of the Obligations of the Borrower (including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the maximum amount permitted by applicable law.  This section shall control all agreements between the Borrower and the Banks and the Agent.

 

  

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§4.15.             Extension of Revolving Credit Maturity Date.

 

(a)           (i)            Provided that no Default or Event of Default shall have occurred and be continuing, the Borrower shall have the option, to be exercised by giving written notice to the Agent in the form of Exhibit H hereto not more than one hundred twenty (120) days and not less than sixty (60) days prior to the initial scheduled Revolving Credit Maturity Date (a “Revolving Credit Extension Request”), subject to the terms and conditions set forth in this Agreement, to extend the Revolving Credit Maturity Date by one (1) year to July 19, 2017.  The request by the Borrower for extension of the Revolving Credit Maturity Date shall constitute a representation and warranty by the Borrower that all of the conditions set forth in this Section shall have been satisfied on the date of such request.

 

(i)           The obligations of the Agent and the Revolving Credit Banks to extend the Revolving Credit Maturity Date as provided in §4.15(a)(i) shall be subject to the satisfaction of the following conditions precedent on the then effective Revolving Credit Maturity Date (without regard to such extension request):

 

(A)           Payment of Extension Fee.  The Borrower shall pay to the Agent on or before the then effective Revolving Credit Maturity Date for the pro rata account of the Revolving Credit Banks in accordance with their respective Revolving Credit Commitment Percentages an extension fee equal to .25% of the then Total Revolving Credit Commitment being extended, which fee shall, when paid, be fully earned and non-refundable under any circumstances.

 

(B)           No Default.  On the date the Revolving Credit Extension Request is given there shall exist no Event of Default, and on the Revolving Credit Maturity Date (as determined without regard to such extension) there shall exist no Default or Event of Default.

 

(C)           Representations and Warranties.  The representations and warranties made by the Borrower, the Guarantors or any of their respective Subsidiaries in the Loan Documents or otherwise made by or on behalf of such Persons in connection therewith or after the date thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the Revolving Credit Maturity Date (as determined without regard to such extension), except to the extent of changes resulting from transactions contemplated or permitted by this Agreement and the other Loan Documents and changes occurring in the ordinary course of business that singly or in the aggregate are not materially adverse, except to the extent that such representations and warranties relate expressly to an earlier date, and except as disclosed to the Agent and the Revolving Credit Banks in writing and approved by the Agent and the Majority Revolving Credit Banks in writing.

 

  

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(D)           Additional Documents.  The Borrower and Guarantors shall also execute and deliver to Agent and the Banks such additional documents, instruments and certifications as the Agent may reasonably require.

 

(ii)           The Agent shall notify each of the Banks in the event that the Revolving Credit Maturity Date is extended as provided in this §4.15(a).

 

(b)           [Intentionally Omitted.]

 

	
§5.

	
UNSECURED OBLIGATIONS; GUARANTY.

 

§5.1.                Unsecured Obligations.  The Banks have agreed to make the Loans to the Borrower and issue Letters of Credit for the account of the Borrower on an unsecured basis.  The Obligations shall be guaranteed pursuant to the terms of the Guaranty.

 

§5.2.                New Guarantors.

 

(a)           Requirement to Become Guarantor.  In the event that any Wholly Owned Subsidiary of Borrower or the Trust, whether presently existing or hereafter formed or acquired, which is not a Guarantor at such time, shall own or be the lessee under a Ground Lease of an Unencumbered Borrowing Base Property or otherwise have a leasehold or other interest in an Unencumbered Borrowing Base Property, then Borrower shall cause such Subsidiary to execute and deliver to the Agent each of the following items, each in form and substance satisfactory to the Agent:  (i) a Joinder Agreement and (ii) the items that would have been delivered under §10.2 through §10.5 if such Subsidiary had been a Guarantor as of the date hereof.  The organizational agreements of each such Subsidiary created after the Closing Date shall specifically authorize each such Subsidiary to guarantee the Obligations.

 

(b)           Release of a Guarantor.  The Borrower may request in writing that the Agent release, and upon receipt of such request the Agent shall release (subject to the terms hereof), a Guarantor from the Guaranty so long as:  (i) no Default or Event of Default shall then be in existence or would occur as a result of such release; (ii) the Agent shall have received such written request at least ten (10) Business Days prior to the requested date of release; (iii) Borrower shall deliver to Agent evidence reasonably satisfactory to Agent either that (A) the Trust and/or the Borrower has disposed of or simultaneously with such release will dispose of its entire interest in such Guarantor or that all of the assets of such Guarantor will be disposed of in compliance with the terms of this Agreement, and if such transaction involves the disposition by such Guarantor of all of its assets, the net cash proceeds from such disposition are being distributed to the Trust and/or the Borrower in connection with such disposition, (B) such Guarantor will be the borrower with respect to Secured Indebtedness permitted under this Agreement, which Indebtedness will be secured by a Lien on the assets of such Guarantor, or (C) the Trust and/or the Borrower has contributed or simultaneously with such release will contribute its entire direct or indirect interest in such Guarantor to an Unconsolidated Affiliate or a Subsidiary which is not a Wholly Owned Subsidiary or that such Guarantor will be contributing all of its assets to an Unconsolidated Affiliate or a Subsidiary which is not a Wholly Owned Subsidiary in compliance with the terms of this Agreement. Delivery by the Borrower to the Agent of any such request for a release shall constitute a representation by the Borrower that the matters set forth in the preceding sentence (both as of the date of the giving of such request and as of the date of the effectiveness of such request) are true and correct with respect to such request.  Notwithstanding the foregoing, the foregoing provisions shall not apply to the Trust, which may only be released upon the written approval of Agent and all of the Banks.

 

  

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§6.

	
REPRESENTATIONS AND WARRANTIES OF THE TRUST AND THE BORROWER.

 

The Borrower and the Trust, jointly and severally, represent and warrant to the Agent and the Banks as follows.

 

§6.1.                Corporate Authority, Etc.

 

(a)           Incorporation; Good Standing.  The Borrower is a Delaware limited partnership duly organized pursuant to its first amended and restated limited partnership agreement dated May 10, 1996, as amended by amendments one through twenty-six, and a Certificate of Limited Partnership and amendments thereto filed with the Secretary of the State of Delaware and is validly existing and in good standing under the laws of the State of Delaware.  The Trust is a Maryland real estate investment trust duly organized pursuant to its trust declaration dated October 2, 1997, as amended and supplemented, and a Certificate of Trust filed with the Secretary of the State of Maryland and is validly existing and in good standing under the laws of the State of Maryland.  Each Subsidiary Guarantor is a limited partnership, limited liability company or other entity duly organized and validly existing and in good standing under the laws of its respective State of organization.  Each of the Borrower and the Guarantors (i) has all requisite power to own its respective property and conduct its respective business as now conducted and as presently contemplated, and (ii) as to the Borrower and the Guarantors are in good standing as a foreign entity and is duly authorized to do business in the jurisdictions where the Unencumbered Borrowing Base Properties are located and in each other jurisdiction where a failure to be so qualified in such other jurisdiction could have a materially adverse effect on the business, assets or financial condition of such Person.  The Trust is a real estate investment trust in full compliance with and entitled to the benefits of §856 of the Code, and has elected to be treated as a real estate investment trust pursuant to the Code.

 

(b)           Subsidiaries.  Each of the Subsidiaries of the Borrower and the Trust (i) is a corporation, limited partnership, limited liability company or trust duly organized under the laws of its State of organization and is validly existing and in good standing under the laws thereof, (ii) has all requisite power to own its property and conduct its business as now conducted and as presently contemplated and (iii) is in good standing and is duly authorized to do business in each jurisdiction where Real Estate held by it is located and in each other jurisdiction where a failure to be so qualified could have a materially adverse effect on the business, assets or financial condition of the Borrower, the Trust, or such Subsidiary.

 

  

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(c)           Authorization.  The execution, delivery and performance of this Agreement and the other Loan Documents to which the Borrower, the Guarantors or any of their respective Subsidiaries is or is to become a party and the transactions contemplated hereby and thereby (i) are within the authority of such Person, (ii) have been duly authorized by all necessary proceedings on the part of such Person, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which such Person is subject or any judgment, order, writ, injunction, license or permit applicable to such Person, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the articles of incorporation, partnership agreement, declaration of trust or other charter documents or bylaws of, or any agreement or other instrument binding upon, such Person or any of its properties, and (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of such Person.

 

(d)           Enforceability.  The execution and delivery of this Agreement and the other Loan Documents to which the Borrower, the Guarantors or any of their respective Subsidiaries is or is to become a party are valid and legally binding obligations of such Person enforceable in accordance with the respective terms and provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought.

 

§6.2.                Governmental Approvals.  The execution, delivery and performance of this Agreement and the other Loan Documents to which the Borrower, the Guarantors or any of their respective Subsidiaries is or is to become a party and the transactions contemplated hereby and thereby do not require the approval or consent of, or filing with, any governmental agency or authority other than those already obtained.

 

§6.3.                Title to Properties; Lease.  The Borrower, the Guarantors and their respective Subsidiaries own all of the assets reflected in the consolidated balance sheet of the Borrower and the Trust as of the Balance Sheet Date or acquired since that date (except property and assets sold or otherwise disposed of in the ordinary course of business since that date), subject to no rights of others, including any mortgages, leases, conditional sales agreements, title retention agreements, liens or other encumbrances except Permitted Liens.

 

§6.4.                Financial Statements.  The Borrower has delivered to each of the Banks: (a) the consolidated balance sheet of the Trust and its respective Subsidiaries as of the Balance Sheet Date, and (b) certain other financial information relating to the Borrower, the Guarantors, the Unencumbered Borrowing Base Properties and the Real Estate.  Such balance sheet and other information have been prepared in accordance with GAAP and fairly present the financial condition of the Borrower, the Guarantors and their respective Subsidiaries as of such dates and the results of the operations of the Borrower, the Guarantors, their respective Subsidiaries and the Unencumbered Borrowing Base Properties for such periods.  There are no liabilities, contingent or otherwise, of the Borrower, the Guarantors or any of their respective Subsidiaries involving material amounts not disclosed in said financial statements and the related notes thereto.

 

  

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§6.5.                No Material Changes.  Since the Balance Sheet Date, there has occurred no materially adverse change in the financial condition, business assets or properties of the Borrower, the Guarantors, and their respective Subsidiaries taken as a whole as shown on or reflected in the consolidated balance sheet of the Borrower and the Trust as of the Balance Sheet Date, or its consolidated statement of income or cash flows for the fiscal year then ended, other than changes in the ordinary course of business that have not had any materially adverse effect either individually or in the aggregate on the business or financial condition of such Person.  The Borrower hereby discloses that it is in the process of marketing the properties described on Schedule 6.5 hereto.

 

§6.6.                Franchises, Patents, Copyrights, Etc.  The Borrower, the Guarantors and their respective Subsidiaries possess all franchises, patents, copyrights, trademarks, trade names, service marks, licenses and permits, and rights in respect of the foregoing, adequate for the conduct of their business substantially as now conducted without known conflict with any rights of others.  Except as stated on Schedule 6.6 hereto, none of the Unencumbered Borrowing Base Properties is owned or operated by Borrower or its Subsidiaries under or by reference to any trademark, trade name, service mark or logo.

 

§6.7.                Litigation.  Except as stated on Schedule 6.7 there are no actions, suits, proceedings or investigations of any kind pending or to the knowledge of such person threatened against the Borrower, the Guarantors or any of their respective Subsidiaries before any court, tribunal, arbitrator, mediator or administrative agency or board that, if adversely determined, might, either in any case or in the aggregate, materially adversely affect the properties, assets, financial condition or business of such Person or materially impair the right of such Person to carry on business substantially as now conducted by it, or result in any liability not adequately covered by insurance, or for which adequate reserves are not maintained on the balance sheet of such Person, or which question the validity of this Agreement or any of the other Loan Documents, any action taken or to be taken pursuant hereto or thereto or any lien or security interest created or intended to be created pursuant hereto or thereto, or which will adversely affect the ability of the Borrower or the Guarantors to pay and perform the Obligations in the manner contemplated by this Agreement and the other Loan Documents.  Except as set forth on Schedule 6.7, as of the date of this Agreement, there are no judgments outstanding against or adversely affecting any of the Borrower, the Guarantors or any of their respective Subsidiaries.

 

§6.8.                No Materially Adverse Contracts, Etc.  None of the Borrower, the Guarantors or any of their respective Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation that has or is expected in the future to have a materially adverse effect on the business, assets or financial condition of such Person.  None of the Borrower, the Guarantors nor any of their respective Subsidiaries is a party to any contract or agreement that has or is expected, in the judgment of the partners or officers of such Person, to have any materially adverse effect on the business of any of them.

 

§6.9.                Compliance with Other Instruments, Laws, Etc.  None of the Borrower, the Guarantors or any of their respective Subsidiaries is in violation of any provision of its charter or other organizational documents, bylaws, or any agreement or instrument to which it may be subject or by which it or any of its properties may be bound or any decree, order, judgment, statute, license, rule or regulation, in any of the foregoing cases in a manner that could result in the imposition of substantial penalties or materially and adversely affect the financial condition, properties or business of such Person.

 

  

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§6.10.             Tax Status.  The Borrower, the Guarantors and each of their respective Subsidiaries (a) has made or filed all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (b) has paid all taxes and other governmental assessments and charges shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and by appropriate proceedings and (c) has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  Except as noted in item 3 on Schedule 6.7 hereto, there are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the partners or officers of such Person know of no basis for any such claim.  There are no audits pending or to the knowledge of the Borrower threatened with respect to any tax returns filed by the Borrower, any Guarantor or their respective Subsidiaries.

 

§6.11.             No Event of Default.  No Default or Event of Default has occurred and is continuing.

 

§6.12.             Investment Company Acts.  None of the Borrower, the Guarantors or any of their respective Subsidiaries is or after giving effect to any Loan will be, subject to regulation under the Federal Power Act or the Investment Company Act of 1940 or to any federal or state statute or regulation limiting its ability to incur indebtedness for borrowed money.

 

§6.13.             Absence of UCC Financing Statements, Etc.  Except with respect to Permitted Liens, there is no financing statement, security agreement, chattel mortgage, real estate mortgage or other document filed or recorded with any filing records, registry, or other public office, that purports to cover, affect or give notice of any present or possible future lien on, or security interest or security title in, any property of the Borrower, the Guarantors or any of their respective Subsidiaries or rights thereunder.

 

§6.14.             [Intentionally Omitted.]

 

§6.15.             Certain Transactions.  Except as set forth on Schedule 6.15, none of the officers, trustees, directors, or employees of the Borrower, the Guarantors or any of their respective Subsidiaries is a party to any transaction with either or both of the Borrower, any Guarantor or any of their respective Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, trustee, director or such employee or, to the knowledge of the Borrower, the Guarantor, or any corporation, partnership, trust or other entity in which any officer, trustee, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

§6.16.             Employee Benefit Plans.  The Borrower, the Guarantors and each ERISA Affiliate have fulfilled their respective obligations under the minimum funding standards of ERISA and the Code with respect to each Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan and is in compliance in all material respects with the presently applicable provisions of ERISA and the Code with respect to each Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan.  Neither the Borrower, the Guarantors nor any ERISA Affiliate has (a) sought a waiver of the minimum funding standard under Section 412 of the Code in respect of any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan, (b) failed to make any contribution or payment to any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan, or made any amendment to any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan, which has resulted or could result in the imposition of a lien or the posting of a bond or other security under ERISA or the Code, or (c) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA.  None of the Real Estate constitutes a “plan asset” within the meaning of ERISA.

 

  

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§6.17.             Regulations T, U and X.  No portion of any Loan is to be used for the purpose of purchasing or carrying any “margin security” or “margin stock” as such terms are used in Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R.  Parts 220, 221 and 224.  Neither the Borrower nor any Guarantor is engaged, and neither the Borrower nor any Guarantor will engage, principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any “margin security” or “margin stock” as such terms are used in Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 220, 221 and 224.

 

§6.18.             Environmental Compliance.  The Borrower and the Trust each has taken all commercially reasonable steps to investigate the past and present conditions and usage of the Real Estate and the operations conducted thereon and, based upon such investigation makes the following representations and warranties except as specifically set forth in the written environmental reports provided to the Agent on or before the date hereof or as set forth on Schedule 6.18 hereto.

 

(a)           With respect to the Unencumbered Borrowing Base Properties, and to the best of the Borrower’s and the Trust’s knowledge with respect to any other Real Estate, none of the Borrower, the Guarantors or their respective Subsidiaries or any operator of the Real Estate, or any operations thereon is in violation, or alleged violation, in any material respect of any judgment, decree, order, law, license, rule or regulation pertaining to environmental matters, including, without limitation, those arising under the Resource Conservation and Recovery Act (“RCRA”), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 as amended (“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), the Federal Clean Water Act, the Federal Clean Air Act, the Toxic Substances Control Act, or any state or local statute, regulation, ordinance, order or decree relating to the environment (hereinafter “Environmental Laws”), which violation involves (i) any of the Unencumbered Borrowing Base Properties or (ii) other Real Estate and would have a material adverse effect on the business, assets or financial condition of the Borrower, any Guarantor or any of their respective Subsidiaries.

 

(b)           None of the Borrower, the Guarantors or any of their respective Subsidiaries has received notice from any third party including, without limitation, any federal, state or local governmental authority, (i) that it has been identified by the United States Environmental Protection Agency (“EPA”) as a potentially responsible party under CERCLA with respect to a site listed on the National Priorities List, 40 C.F.R. Part 300 Appendix B (1986); (ii) that any hazardous waste, as defined by 42 U.S.C. §9601(5), any hazardous substances as defined by 42 U.S.C. §9601(14), any pollutant or contaminant as defined by 42 U.S.C. §9601(33) or any toxic substances, oil or hazardous materials or other chemicals or substances regulated by any Environmental Laws (“Hazardous Substances”) which it has generated, transported or disposed of have been found at any site at which a federal, state or local agency or other third party has conducted or has ordered that the Borrower, any Guarantor or any of their respective Subsidiaries conduct a remedial investigation, removal or other response action pursuant to any Environmental Law; or (iii) that it is or shall be a named party to any claim, action, cause of action, complaint, or legal or administrative proceeding (in each case, contingent or otherwise) arising out of any third party’s incurrence of costs, expenses, losses or damages of any kind whatsoever in connection with the release of Hazardous Substances.

 

  

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(c)           With respect to the Unencumbered Borrowing Base Properties, and to the best of the Borrower’s and the Trust’s knowledge with respect to any other Real Estate, (i) no portion of the Real Estate has been used for the handling, processing, storage or disposal of Hazardous Substances except in accordance with applicable Environmental Laws in all material respects, and no underground tank or other underground storage receptacle for Hazardous Substances is located on any portion of the Real Estate; (ii) in the course of any activities conducted by either the Borrower, the Guarantors, their Subsidiaries or the operators of its properties, no Hazardous Substances have been generated or are being used on the Real Estate except in the ordinary course of business and in accordance with applicable Environmental Laws in all material respects; (iii) there has been no past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, disposing or dumping (a “Release”) or threatened Release of Hazardous Substances on, upon, into or from any of the Real Estate, or, to the best of the Borrower’s or the Trust’s knowledge, on, upon, into or from the other properties of the Borrower, the Guarantors or their respective Subsidiaries, which Release would have a material adverse effect on the value of any of the Real Estate or adjacent properties or the environment; (iv) to the best of the Borrower’s or the Trust’s knowledge, there have been no Releases on, upon, from or into any real property in the vicinity of any of the Real Estate which through soil or groundwater contamination, may have come to be located on, and which would have a material adverse effect on the value of, the Real Estate; and (v) any Hazardous Substances that have been generated on any of the Real Estate have been transported off-site only by carriers having an identification number issued by the EPA or approved by a state or local environmental regulatory authority having jurisdiction regarding the transportation of such substance and treated or disposed of only by treatment or disposal facilities maintaining valid permits as required under all applicable Environmental Laws, which transporters and facilities have been and are, to the best of the Borrower’s or the Trust’s knowledge, operating in compliance with such permits and applicable Environmental Laws.

 

(d)           None of the Borrower, the Guarantors, their respective Subsidiaries, or the Real Estate is subject to any applicable Environmental Law requiring the performance of Hazardous Substances site assessments, or the removal or remediation of Hazardous Substances, or the giving of notice to any governmental agency or the recording or delivery to other Persons of an environmental disclosure document or statement by virtue of the transactions set forth herein and contemplated hereby.

 

  

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§6.19.             Subsidiaries and Unconsolidated Affiliates.  Schedule 6.19 sets forth all of the Subsidiaries and Unconsolidated Affiliates of the Borrower and the Trust.  The form and jurisdiction of organization of each of the Subsidiaries and Unconsolidated Affiliates, and the Borrower’s and the Trust’s ownership interest therein, is set forth in said Schedule 6.19.

 

§6.20.             Loan Documents.  All of the representations and warranties made by or on behalf of the Borrower, the Guarantors, and their respective Subsidiaries in this Agreement and the other Loan Documents or any document or instrument delivered to the Agent or the Banks pursuant to or in connection with any of such Loan Documents are true and correct in all material respects, and neither the Borrower, the Guarantors nor any of their respective Subsidiaries has failed to disclose such information as is necessary to make such representations and warranties not misleading.

 

§6.21.             Property.  All of the Borrower’s, the Guarantors’ and their respective Subsidiaries’ Real Estate is in good condition and working order subject to ordinary wear and tear, except where such failure would not individually or in the aggregate have any material adverse affect on the business or financial condition of the Borrower or any Guarantor.  There are no unpaid or outstanding real estate or other taxes or assessments on or against any property of the Borrower, the Guarantors or any of their respective Subsidiaries which are payable by the Borrower, the Guarantors or any of their respective Subsidiaries (except only real estate or other taxes or assessments, that are not yet due and payable or are being protested as permitted by this Agreement).  There are no pending eminent domain proceedings against any property of the Borrower, the Guarantors or any of their respective Subsidiaries or any part thereof, and, to the knowledge of the Borrower, no such proceedings are presently threatened or contemplated by any taking authority which may individually or in the aggregate have any materially adverse effect on the business or financial condition of the Borrower or any Guarantor.  None of the property of the Borrower, the Guarantors or any of their respective Subsidiaries is now damaged as a result of any fire, explosion, accident, flood or other casualty in any manner which individually or in the aggregate would have any materially adverse effect on the business or financial condition of the Borrower or any Guarantor.

 

§6.22.             Brokers.  None of the Borrower, the Guarantors or any of their respective Subsidiaries has engaged or otherwise dealt with any broker, finder or similar entity in connection with this Agreement or the Loans contemplated hereunder.

 

§6.23.             Other Debt.  Except as set forth on Schedule 6.23 hereto, none of the Borrower, the Guarantors or any of their respective Subsidiaries is in default of the payment of any Indebtedness or any other agreement, mortgage, deed of trust, security agreement, financing agreement, indenture or lease to which any of them is a party.  Neither the Borrower nor any Guarantor is a party to or bound by any agreement, instrument or indenture that may require the subordination in right or time or payment of any of the Obligations to any other indebtedness or obligation of the Borrower or such Guarantor.  The Borrower, the Guarantor has provided to the Agent a schedule, and upon the request of the Agent will provide copies, of all agreements, mortgages, deeds of trust, financing agreements or other material agreements binding upon the Borrower, the Guarantors or their respective properties and entered into by the Borrower or any Guarantor as of the date of this Agreement with respect to any Indebtedness of the Borrower or any Guarantor.

 

  

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§6.24.             Solvency.  As of the Closing Date and after giving effect to the transactions contemplated by this Agreement and the other Loan Documents, including all Loans made or to be made hereunder, neither the Borrower, the Guarantors nor any of their Subsidiaries is insolvent on a balance sheet basis such that the sum of such Person’s assets exceeds the sum of such Person’s liabilities, such Person is able to pay its debts as they become due, and such Person has sufficient capital to carry on its business.

 

§6.25.             Contribution Agreement.  Borrower has delivered to the Agent a true, correct and complete copy of the Contribution Agreement.  The Contribution Agreement is in full force and effect in accordance with its terms, there are no material claims resulting from non-performance of the terms thereof or otherwise or any basis for a material claim by any party to the Contribution Agreement, nor has there been any waiver of any material terms thereunder.

 

§6.26.             No Fraudulent Intent.  Neither the execution and delivery of this Agreement or any of the other Loan Documents nor the performance of any actions required hereunder or thereunder is being undertaken by the Borrower, any Guarantor or any of their respective Subsidiaries with or as a result of any actual intent by any of such Persons to hinder, delay or defraud any entity to which any of such Persons is now or will hereafter become indebted.

 

§6.27.             Transaction in Best Interests of Borrower; Consideration.  The transaction evidenced by this Agreement and the other Loan Documents is in the best interests of the Borrower, the Guarantors, each of their respective Subsidiaries and the creditors of such Persons.  The direct and indirect benefits to inure to the Borrower, the Guarantors and each of their respective Subsidiaries  pursuant to this Agreement and the other Loan Documents constitute substantially more than “reasonably equivalent value” (as such term is used in Section 548 of the Bankruptcy Code) and “valuable consideration,” “fair value,” and “fair consideration,” (as such terms are used in any applicable state fraudulent conveyance law), in exchange for the benefits to be provided by the Borrower, the Guarantors and each of their respective Subsidiaries pursuant to this Agreement and the other Loan Documents, and but for the willingness of the Guarantors to guaranty the Loan, Borrower would be unable to obtain the financing contemplated hereunder which financing will enable the Borrower and its Subsidiaries to have available financing to refinance existing indebtedness and to conduct and expand their business.

 

§6.28.             Partners and the Trust.  The Trust is the sole general partner of the Borrower and owns a 1% general partnership interest and as of the Closing Date not less than a 90% limited partnership interest in the Borrower.  The Trust owns no assets other than its interest in the Borrower as a general partner and limited partner, cash, Short-term Investments and the property described in Schedule 6.29 hereto.

 

§6.29.             Tax Indemnity Agreement.  The Tax Indemnity Agreement has not been voluntarily terminated by Borrower or the Trust and there has been no waiver of any material terms thereunder by Borrower or the Trust.

 

§6.30.             Embargoed Persons.  None of the Borrower, the Guarantors or their respective Subsidiaries, are (and none of the Borrower, the Guarantors or their respective Subsidiaries will be) a Person named on OFAC’s Specially Designated and Blocked Persons list) or under any statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and shall not engage in any dealings or transactions or otherwise be associated with such persons.  In addition, Borrower hereby agrees to provide to the Banks any additional information that a Bank deems reasonably necessary from time to time in order to ensure compliance with all applicable laws concerning money laundering and similar activities.

 

  

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§6.31.             Unencumbered Borrowing Base Properties.  As of the Closing Date, Schedule 6.31 is a correct and complete list of all Unencumbered Borrowing Base Properties.  Each of the Unencumbered Borrowing Base Properties included by the Borrower in calculation of the compliance of the covenants set forth in §9 satisfies all of the requirements contained in this Agreement for the same to be included therein.

 

	
§7.

	
AFFIRMATIVE COVENANTS OF THE TRUST AND THE BORROWER.

 

The Trust (to the extent hereinafter provided) and the Borrower covenant and agree that, so long as any Loan, Letter of Credit or Note is outstanding or any Bank has any obligation to make any Loans or to issue any Letter of Credit:

 

§7.1.                Punctual Payment.  The Borrower will duly and punctually pay or cause to be paid the principal and interest on the Loans and all interest and fees provided for in this Agreement, all in accordance with the terms of this Agreement and the Notes as well as all other sums owing pursuant to the Loan Documents.

 

§7.2.                Maintenance of Office.  The Borrower will maintain its chief executive office at 31500 Northwestern Highway, Suite 300, Farmington Hills, Michigan, 48334, or at such other place in the United States of America as the Borrower shall designate upon prior written notice to the Agent and the Banks, where notices, presentations and demands to or upon the Borrower in respect of the Loan Documents may be given or made.

 

§7.3.                Records and Accounts.  The Borrower and the Trust will (a) keep, and cause each of their respective Subsidiaries to keep, true and accurate records and books of account in which full, true and correct entries will be made in accordance with GAAP and (b) maintain adequate accounts and reserves for all taxes (including income taxes), depreciation and amortization of its properties and the properties of their respective Subsidiaries, contingencies and other reserves.  Neither the Borrower nor the Guarantors nor any of their respective Subsidiaries shall, without the prior written consent of the Majority Banks, (x) make any material changes to the accounting principles used by such Person in preparing the financial statements and other information described in §6.4 except as required by GAAP or (y) change its fiscal year.

 

§7.4.                Financial Statements, Certificates and Information.  The Borrower and the Trust will deliver or cause to be delivered to each of the Banks:

 

(a)           as soon as practicable, but in any event not later than one hundred (100) days after the end of each fiscal year of the Trust, the audited Consolidated balance sheet of the Trust and its Subsidiaries at the end of such year, and the related audited Consolidated statements of income, changes in shareholder’s equity and cash flows for such year, each setting forth in comparative form the figures for the previous fiscal year and all such statements to be in reasonable detail, prepared in accordance with GAAP, and accompanied by an auditor’s report prepared without qualification by Grant Thornton LLP, or by another nationally recognized accounting firm, the Form 10-K of the Trust filed with the SEC (unless the SEC has approved an extension, in which event the Trust will deliver to the Agent and each of the Banks a copy of the Form 10-K simultaneously with delivery to the SEC), and any other information the Banks may need to complete a financial analysis of the Trust and its Subsidiaries;

 

  

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(b)           as soon as practicable, but in any event not later than fifty-five (55) days after the end of each of the first three (3) fiscal quarters of the Borrower and the Trust, respectively, copies of the unaudited Consolidated balance sheet of the Borrower and its Subsidiaries and the Trust and its Subsidiaries, respectively, as at the end of such quarter, and the related unaudited Consolidated statements of income, changes in shareholder’s equity and cash flows for the portion of the Borrower’s and the Trust’s, respectively, fiscal year then elapsed, all in reasonable detail and prepared in accordance with GAAP (which, as to the Trust, may be provided by inclusion in the Form 10-Q of the Trust for such period provided pursuant to subsection (c) below), together with a certification by the principal financial or accounting officer of the Borrower and the Trust, respectively, that the information contained in such financial statements fairly presents the financial position of such Person and its Subsidiaries on the date thereof (subject to year-end adjustments); provided, however, that unless otherwise requested by the Agent or the Majority Banks, the Borrower shall not be required to deliver the balance sheets, statements or other matters required by this §7.4(b) to the extent the same are incorporated in the balance sheets, statements and other matters delivered to the Banks by the Trust;

 

(c)           as soon as practicable, but in any event not later than fifty-five (55) days after the end of each of the first three (3) fiscal quarters of the Trust in each year, copies of Form 10-Q filed with the SEC (unless the SEC has approved an extension in which event the Trust will deliver such copies of the Form 10-Q to the Agent and each of the Banks simultaneously with delivery to the SEC);

 

(d)           as soon as practicable, but in any event not later than fifty-five (55) days after the end of the first three (3) fiscal quarters of the Borrower, copies of a Consolidated statement of Operating Cash Flow for such fiscal quarter for the Borrower and its Subsidiaries and a statement of Operating Cash Flow for such fiscal quarter for the Borrower and the Unencumbered Borrowing Base Properties, prepared on a basis consistent with the statement furnished pursuant to §6.4 together with a certification by the chief financial or chief accounting officer of the general partner of the Borrower, that the information contained in such statement fairly presents the Operating Cash Flow of the Borrower and its Subsidiaries and the Unencumbered Borrowing Base Properties for such period;

 

(e)           simultaneously with the delivery of the financial statements referred to in subsections (a) and (b) above, a statement (a “Compliance Certificate”) certified by the principal financial or accounting officer of Trust and of the general partner of the Borrower in the form of Exhibit I hereto (or in such other form as the Agent may approve from time to time) setting forth in reasonable detail computations evidencing compliance with the covenants contained in §8.1, §8.3, §8.7, §8.9, §9 and the other covenants described therein, and (if applicable) reconciliations to reflect changes in GAAP since the Balance Sheet Date.  With each Compliance Certificate, the Borrower shall also deliver a certificate (a “Borrowing Base Property Certificate”) executed by the chief financial officer of the general partner of the Borrower that lists each of the Unencumbered Borrowing Base Properties, and certifies that all Unencumbered Borrowing Base Properties so listed fully qualify as such under the applicable criteria in this Agreement, lists any additions or removals of Unencumbered Borrowing Base Properties during such accounting period, as appropriate, and includes such information as Agent may reasonably require to determine the economic and physical occupancy of said Unencumbered Borrowing Base Properties and the aggregate Borrowing Base Availability and the Operating Cash Flow from such Unencumbered Borrowing Base Properties during such period;

 

  

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(f)            contemporaneously with the filing or mailing thereof, copies of all material of a financial nature filed with the SEC or sent to the stockholders of the Trust or the partners of the Borrower;

 

(g)           [Intentionally Omitted];

 

(h)           [Intentionally Omitted];

 

(i)            [Intentionally Omitted];

 

(j)            [Intentionally Omitted];

 

(k)           promptly after they are filed with the Internal Revenue Service, copies of all annual federal income tax returns and amendments thereto of the Borrower and the Trust;

 

(l)            simultaneously with the delivery of the financial statements referred to in subsections (a) and (b) above, each of the following with respect to each acquisition of an interest in a Subsidiary: (i) the name and structure of the Subsidiary, (ii) a description of the property owned by such Subsidiary, and (iii) such other information as the Agent may reasonably request;

 

(m)          simultaneously with the delivery of the financial statement referred to in subsection (a) above, a statement (i) listing the Real Estate owned by the Borrower, the Guarantors or their respective Subsidiaries and Unconsolidated Affiliates (or in which the Borrower, the Guarantors or their respective Subsidiaries owns an interest) and stating the location thereof, the date acquired and the acquisition cost, (ii) listing the Indebtedness of the Borrower, the Guarantors or their respective Subsidiaries and Unconsolidated Affiliates (excluding Indebtedness of the type described in §8.1(b)-(e)), which statement shall include, without limitation, a statement of the original principal amount of such Indebtedness and the current amount outstanding, the holder thereof, the maturity date and any extension options, the interest rate, the collateral provided for such Indebtedness and whether such Indebtedness is recourse or non-recourse, and (iii) listing the properties of the Borrower, the Guarantors or their respective Subsidiaries or Unconsolidated Affiliates which are under “development” (as used in §8.9) and providing a brief summary of the status of such development;

 

(n)           not later than thirty (30) days prior to the end of each fiscal year of the Borrower a budget and business plan for the next fiscal year and a budget for each Unencumbered Borrowing Base Property;

 

  

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(o)           as soon as practicable, but in any event not later than one hundred (100) days after the end of each fiscal year of the Borrower, the unaudited Consolidated balance sheet of the Borrower and its Subsidiaries at the end of such year, and the related unaudited consolidated statements of income, changes in shareholder’s equity and cash flows for such year, each setting forth in comparative form the figures for the previous fiscal year and all such statements to be in reasonable detail, prepared in accordance with GAAP, and accompanied by a certification by the principal financial or accounting officer of the Borrower that the information contained in such financial statements fairly presents the financial position of the Borrower and its Subsidiaries on the date thereof (provided, however, the Borrower shall not be required to provide such statements in the event that such statements would be substantially similar to the consolidated statements provided by the Trust);

 

(p)           promptly upon becoming aware of a change in any credit rating (including the Credit Rating) given by a Rating Agency or any announcement that any rating is “under review” or that such rating has been placed on a watch list or that any similar action has been taken by a Rating Agency, written notice to Agent of such change, announcement or action; and

 

(q)           from time to time such other financial data and information in the possession of the Borrower, the Guarantors or their respective Subsidiaries (including without limitation auditors’ management letters, property inspection and environmental reports and other legal and regulatory changes affecting the Borrower or the Guarantors) as the Agent may reasonably request.

 

Any material to be delivered pursuant to this §7.4 may be delivered electronically directly to Agent and the Banks provided that such material is in a format reasonably acceptable to Agent, and such material shall be deemed to have been delivered to Agent and the Banks upon Agent’s receipt thereof.  Upon the request of Agent, Borrower and the Trust shall deliver paper copies thereof to Agent and the Banks.  Borrower and the Trust authorize Agent and Arranger to disseminate any such materials through the use of Intralinks, SyndTrak or any other electronic information dissemination system, and the Borrower and the Trust release Agent and the Banks from any liability in connection therewith.

 

§7.5.                Notices.

 

(a)           Defaults.  The Borrower will promptly notify the Agent in writing of the occurrence of any Default or Event of Default.  If any Person shall give any notice or take any other action in respect of a claimed default (whether or not constituting an Event of Default) under this Agreement or under any note, evidence of indebtedness, indenture or other obligation to which or with respect to which the Borrower, the Guarantors or any of their respective Subsidiaries is a party or obligor, whether as principal or surety, and such default would permit the holder of such note or obligation or other evidence of indebtedness to accelerate the maturity thereof, which acceleration would either cause a Default or Event of Default or would have a material adverse effect on the Borrower or any Guarantor or any of their respective Subsidiaries, the Borrower shall forthwith give written notice thereof to the Agent and each of the Banks, describing the notice or action and the nature of the claimed default.

 

  

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(b)           Environmental Events.  The Borrower will promptly give notice to the Agent (i) upon the Borrower obtaining knowledge of any potential or known Release of any Hazardous Substances at or from any Real Estate; (ii) of any violation of any Environmental Law that the Borrower, the Guarantors or any of their respective Subsidiaries reports in writing or is reportable by such Person in writing (or for which any written report supplemental to any oral report is made) to any federal, state or local environmental agency and (iii) upon becoming aware thereof, of any inquiry, proceeding, investigation, or other action, including a notice from any agency of potential environmental liability, of any federal, state or local environmental agency or board, that in either case involves any Real Estate or has the potential to materially affect the assets, liabilities, financial conditions or operations of the Borrower, any Guarantor or any Subsidiary.

 

(c)           [Intentionally Omitted.]

 

(d)           Notice of Litigation and Judgments.  The Borrower will give notice to the Agent in writing within fifteen (15) days of becoming aware of any litigation or proceedings threatened in writing or any pending litigation and proceedings affecting the Borrower, the Guarantors or any of their respective Subsidiaries or to which the Borrower, the Guarantors or any of their respective Subsidiaries is or is to become a party involving an uninsured claim against the Borrower, the Guarantors or any of their respective Subsidiaries that could reasonably be expected to have a materially adverse effect on the Borrower or any Guarantor or any of their respective Subsidiaries and stating the nature and status of such litigation or proceedings.  The Borrower will give notice to the Agent, in writing, in form and detail satisfactory to the Agent and each of the Banks, within ten (10) days of any judgment not covered by insurance, whether final or otherwise, against the Borrower, any Guarantor or any of their respective Subsidiaries in an amount in excess of $10,000,000.

 

(e)           Notification of Banks.  Promptly after receiving any notice under this §7.5, the Agent will forward a copy thereof to each of the Banks, together with copies of any  certificates or other written information that accompanied such notice.

 

§7.6.                Existence; Maintenance of Properties.

 

(a)           The Borrower will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a Delaware limited partnership.  The Trust will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a Maryland real estate investment trust.  The Borrower and the Trust will cause each of their respective Subsidiaries to do or cause to be done all things necessary to preserve and keep in full force and effect its legal existence.  The Borrower and the Guarantors will do or cause to be done all things necessary to preserve and keep in full force all of their respective rights and franchises and those of their Subsidiaries.  The Borrower and the Trust will, and will cause each of their respective Subsidiaries to, continue to engage primarily in the businesses now conducted by it and in related businesses.

 

(b)           The Borrower and the Trust (i) will cause all of their properties and those of their respective Subsidiaries used or useful in the conduct of its business or the business of its Subsidiaries to be maintained and kept in good condition, repair and working order (ordinary wear and tear excepted) and supplied with all necessary equipment, and (ii) will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof in all cases in which the failure so to do the foregoing pursuant to clause (i) or (ii) would have a material adverse effect on the condition of the applicable Unencumbered Borrowing Base Property or on the financial condition, assets or operations of the Borrower, any Guarantor and their respective Subsidiaries.

 

  

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(c)           The common stock of the Trust shall at all times be listed for trading and be traded on the New York Stock Exchange.

 

§7.7.                Insurance.

 

(a)           The Borrower will procure and maintain or cause to be procured and maintained insurance covering the Borrower and the Guarantors and their respective Subsidiaries and their respective properties (the cost of such insurance to be borne by the insured thereunder) in such amounts and against such risks and casualties as are customary for properties of similar character and location, due regard being given to the type of improvements thereon, their construction, location, use and occupancy.

 

§7.8.                Taxes.  The Borrower, the Guarantors and each of their respective Subsidiaries will duly pay and discharge, or cause to be paid and discharged, before the same shall become overdue, all taxes, assessments and other governmental charges imposed upon it and upon the Real Estate, sales and activities, or any part thereof, or upon the income or profits therefrom as well as all claims for labor, materials, or supplies that if unpaid might by law become a lien or charge upon any of its property; provided that any such tax, assessment, charge, levy or claim need not be paid if the validity or amount thereof shall currently be contested in good faith by appropriate proceedings and if the Borrower, such Guarantor or such Subsidiary shall have set aside on its books adequate reserves with respect thereto; and provided, further that forthwith upon the commencement of proceedings to foreclose any lien that may have attached as security therefor, the Borrower, the Guarantor or such Subsidiary either (i) will provide a bond issued by a surety reasonably acceptable to the Agent and sufficient to stay all such proceedings or (ii) if no such bond is provided, will pay each such tax, assessment, charge, levy or claim.

 

§7.9.                Inspection of Properties and Books.  The Borrower and the Trust shall permit the Banks at such Bank’s expense to visit and inspect any of the properties of the Borrower, the Guarantors or any of their respective Subsidiaries, and at the Borrower’s expense to examine the books of account of the Borrower, the Guarantors or any of their respective Subsidiaries (and to make copies thereof and extracts therefrom) and to discuss the affairs, finances and accounts of the Borrower, the Guarantors or any of their respective Subsidiaries with, and to be advised as to the same by, its officers, all at such reasonable times and intervals as the Agent or any Bank may reasonably request, provided that so long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall not be required to pay for such examinations more often than once in any twelve (12) month period.  The Banks shall use good faith efforts to coordinate such visits and inspections so as to minimize the interference with and disruption to the Borrower’s normal business operations.

 

  

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§7.10.             Compliance with Laws, Contracts, Licenses, and Permits.  The Borrower and the Trust will comply with, and will cause each of their respective Subsidiaries to comply in all respects with, (i) all applicable laws and regulations now or hereafter in effect wherever its business is conducted, including all Environmental Laws, (ii) the provisions of its corporate charter, partnership agreement or declaration of trust, as the case may be, and other charter documents and bylaws, (iii) all agreements and instruments to which it is a party or by which it or any of its properties may be bound, (iv) all applicable decrees, orders, and judgments, and (v) all licenses and permits required by applicable laws and regulations for the conduct of its business or the ownership, use or operation of its properties.  If at any time while any Loan, Note or Letter of Credit is outstanding or the Banks have any obligation to make Loans or issue Letters of Credit hereunder, any authorization, consent, approval, permit or license from any officer, agency or instrumentality of any government shall become necessary or required in order that the Borrower or the Guarantors may fulfill any of its obligations hereunder or under the other Loan Documents, the Borrower will immediately take or cause to be taken all steps necessary to obtain or cause such Guarantor or Subsidiary to obtain such authorization, consent, approval, permit or license and furnish the Agent and the Banks with evidence thereof.

 

§7.11.             Use of Proceeds.  Subject to the terms, covenants and conditions set forth herein, the Borrower will use the proceeds of the Loans and Letters of Credit to the Borrower solely to (a) finance tenant improvements, acquisition, development and redevelopment of Real Estate as permitted in this Agreement, capital expenditures and leasing commissions, bridge debt financing and refinance “gap” funding, (b) provide financing for general corporate purposes including working capital, and (c) repay outstanding Indebtedness (but specifically excluding the payment, prepayment, purchase, redemption or other retirement of the principal of any Subordinated Debt).

 

§7.12.             Further Assurances.  Each of the Borrower and the Trust will cooperate with, and will cause each of their respective Subsidiaries to cooperate with the Agent and the Banks and execute such further instruments and documents as the Banks or the Agent shall reasonably request to carry out to their satisfaction the transactions contemplated by this Agreement and the other Loan Documents.

 

§7.13.             Compliance.  The Borrower and the Trust shall operate their respective businesses, and shall cause each of their respective Subsidiaries to operate its business, in compliance with the terms and conditions of this Agreement and the other Loan Documents.  The Trust shall at all times comply with all requirements of applicable laws necessary to maintain REIT Status, shall elect to be treated as a real estate investment trust and shall operate its business in compliance with the terms and conditions of this Agreement and the other Loan Documents.

 

§7.14.             Limiting Agreements.

 

(a)           Neither Borrower, the Guarantors nor any of their respective Subsidiaries shall enter into, any agreement, instrument or transaction which has or may have the effect of prohibiting or limiting Borrower’s, the Guarantors’ or any of their respective Subsidiaries’ ability to pledge to Agent any Unencumbered Borrowing Base Properties as security for the Loans.  Borrower shall take, and shall cause the Guarantors and their respective Subsidiaries to take, such actions as are necessary to preserve the right and ability of Borrower, the Guarantors and their respective Subsidiaries to pledge such assets as security for the Loans without any such pledge after the date hereof causing or permitting the acceleration (after the giving of notice or the passage of time, or otherwise) of any other Indebtedness of Borrower, the Guarantors or any of their respective Subsidiaries.

 

  

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(b)           Borrower shall, upon demand, provide to the Agent such evidence as the Agent may reasonably require to evidence compliance with this §7.14, which evidence shall include, without limitation, copies of any agreements or instruments which would in any way restrict or limit the Borrower’s, any Guarantor’s or any Subsidiary’s ability to pledge Unencumbered Borrowing Base Properties as security for Indebtedness, or which provide for the occurrence of a default (after the giving of notice or the passage of time, or otherwise) if Unencumbered Borrowing Base Properties are pledged in the future as security for Indebtedness of the Borrower or any Guarantor.

 

§7.15.             Ownership of Real Estate.  Without the prior written consent of the Majority Banks, which consent may be withheld by the Majority Banks in their sole discretion, and notwithstanding any other provision of the Loan Documents, all interests (whether direct or indirect) of the Borrower or the Trust in real estate assets acquired after the date hereof shall be owned directly by the Borrower; provided, however, subject to the restrictions in §8.3, the Borrower shall be permitted to own Real Estate through Subsidiaries or Unconsolidated Affiliates.

 

§7.16.             More Restrictive Agreements.  Should the Borrower, the Guarantors or any of their respective Subsidiaries enter into or modify any agreements or documents pertaining to any existing or future Indebtedness, Debt Offering or Equity Offering, which agreements or documents include covenants, whether affirmative or negative (or any other provision which may have the same practical effect as any of the foregoing), which are individually or in the aggregate more restrictive against the Borrower, the Guarantors or their respective Subsidiaries than those set forth in §8 and §9 of this Agreement or the Guaranty, the Borrower shall promptly notify the Agent and, if requested by the Majority Banks, the Borrower, the Guarantors, the Agent and the Majority Banks shall promptly amend this Agreement and the other Loan Documents to include some or all of such more restrictive provisions as determined by the Majority Banks in their sole discretion.  Each of the Borrower and Guarantors agree to deliver to the Agent copies of any agreements or documents (or modifications thereof) pertaining to existing or future Indebtedness, Debt Offering or Equity Offering of the Borrower, the Guarantors or any of their respective Subsidiaries as the Agent from time to time may request.  Notwithstanding the foregoing, this §7.16 shall not apply to covenants contained in any agreements or documents evidencing or securing Non-recourse Indebtedness or covenants in agreements or documents relating to Recourse Indebtedness that relate only to specific Real Estate that is collateral for such Indebtedness.

 

§7.17.             Trust Restrictions.  The Borrower and Trust covenant and agree that:  the Trust will at all times (a) be the sole general partner of the Borrower, (b) own not less than fifty-one percent (51%) of the partnership interests in the Borrower, and in any event the largest percentage interest of any partner in the Borrower and (c) be responsible for making all major and day-to-day operational and management decisions to be made by the Borrower in the conduct of its business.  Without the prior written consent of Agent, the Trust shall not own any assets other than its interest in the Borrower as a general partner and a limited partner, cash, Short-term Investments and the property described on Schedule 6.29 hereto.

 

  

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§7.18.             Interest Rate Contract(s).  The Borrower shall at all times from and after the date of this Agreement maintain in full force and effect, an Interest Rate Contract(s) in form and substance satisfactory to Agent in an amount necessary to ensure that the outstanding “Debt” (as hereinafter defined) of Borrower, the Guarantors and their respective Subsidiaries that is Variable Rate Debt does not exceed twenty-five percent (25%) of Consolidated Total Adjusted Asset Value of the Borrower.  The Interest Rate Contract(s) shall be provided by any Bank which is a party to this Agreement or a bank or other financial institution that has unsecured, uninsured and unguaranteed long-term debt which is rated at least A-3 by Moody’s Investor Service, Inc. or at least A- by Standard & Poor’s Corporation.  The Borrower shall upon the request of the Agent provide to the Agent evidence that the Interest Rate Contract(s) is in effect.  For the purposes of this §7.18, the term “Debt” shall mean any indebtedness of the Borrower, the Guarantors or any their respective Subsidiaries, whether or not contingent, and without duplication, in respect of (i) borrowed money evidenced by bonds, notes, debentures or similar instruments or (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on property owned by the Borrower, any Guarantor or any of their respective Subsidiaries, to the extent that any such items would appear as a liability on the balance sheet of the Borrower, the Guarantors or any of their respective Subsidiaries in accordance with GAAP, and also includes, to the extent not otherwise included, any obligation by the Borrower, the Guarantors or any of their respective Subsidiaries to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), indebtedness of another Person (other than the Borrower, any Guarantor or any of their respective Subsidiaries) (it being understood that Debt shall be deemed to be incurred by the Borrower, the Guarantors or any of their respective Subsidiaries whenever the Borrower, any Guarantor or any of their respective Subsidiaries shall create, assume, guarantee or otherwise become liable in respect thereof).

 

§7.19.             Unencumbered Borrowing Base Properties.

 

(a)           The Unencumbered Borrowing Base Properties shall at all times satisfy all of the following conditions:

 

(i)           each of the Unencumbered Borrowing Base Properties shall be owned 100% in fee simple or leased under a Ground Lease by the Borrower or, subject to the terms of this Agreement, a Subsidiary Guarantor, free and clear of all Liens other than the Liens permitted in §8.2(ii) and (v), and such Unencumbered Borrowing Base Property does not have applicable to it any restriction on the pledge, transfer, mortgage or assignment of such property (including any restrictions contained in any applicable organizational documents).  If such Unencumbered Borrowing Base Property is owned or leased by a Subsidiary Guarantor, such Subsidiary Guarantor shall not be a borrower or guarantor with respect to any other Indebtedness other than the Obligations;

 

  

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(ii)           none of the Unencumbered Borrowing Base Properties shall have any material title, survey, environmental, structural or other defects that would give rise to a materially adverse effect as to the value, use of or ability to sell or refinance such property;

 

(iii)          such Unencumbered Borrowing Base Property is managed by the Borrower or a Wholly Owned Subsidiary of the Borrower, or a third party manager approved by the Agent, such approval not to be unreasonably withheld;

 

(iv)         prior to inclusion of Real Estate within the Unencumbered Borrowing Base Properties, Borrower shall have delivered to Agent a physical description of the Real Estate and current rent rolls, operating statements and an operating and capital expenditure budget for such Real Estate reasonably satisfactory to the Agent, and such information as Agent may reasonably require to determine the value attributable to such Real Estate for the purposes of §9.5 and compliance with this §7.19;

 

(v)          each of the Unencumbered Borrowing Base Properties shall consist solely of Real Estate (A) which is located within the contiguous 48 states of the continental United States, (B) which is utilized principally for a shopping center or a retail facility or a use ancillary thereto (including, with respect to Borrower’s Aquia development only, an office component) and is consistent with Borrower’s business strategy on the date of this Agreement, (C) which contains improvements that are in operating condition and available for occupancy, and (D) except with respect to properties temporarily removed from the occupancy calculation pursuant to §7.19(a)(ix), with respect to which valid certificates of occupancy or the equivalent for all buildings thereon have been issued and are in full force and effect;

 

(vi)         no Person other than Borrower or a Subsidiary Guarantor has any direct or indirect ownership of any equity interest or other Voting Interest in such Subsidiary Guarantor if such Unencumbered Borrowing Base Property is owned or leased under a Ground Lease by a Subsidiary Guarantor (it being understood that no such Person shall be deemed to have any such ownership interest for purposes of this provision solely by virtue of owning any equity interest in the Trust or owning any limited partnership interest in the Borrower, and if such Unencumbered Borrowing Base Property is owned (or leased) by a Subsidiary Guarantor, the Borrower’s direct and indirect interest in such Subsidiary Guarantor shall be free and clear of all Liens);

 

(vii)        such Real Estate has been designated as an “Unencumbered Borrowing Base Property” on Schedule 6.31 hereto or in a Borrowing Base Property Certificate in accordance with §7.4(e) or delivered pursuant to this §7.19, and in any event has not been removed as an Unencumbered Borrowing Base Property pursuant to §7.19(d) or §7.19(e);

 

(viii)       the number of properties included within the Unencumbered Borrowing Base Properties shall not be less than ten (10) and shall provide Borrowing Base Availability of not less than $200,000,000.00 ;

 

  

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(ix)          the Unencumbered Borrowing Base Properties shall consist solely of Real Estate which has (A) an aggregate occupancy level of tenants (excluding the Borrower or any of its Affiliates) in possession (but not any tenant having under lease 25,000 square feet or more on a holdover or month-to-month basis), operating, paying rent and which are not otherwise in default of at least eighty percent (80%) of the Net Rentable Area within such Unencumbered Borrowing Base Properties for the previous fiscal quarter of the Borrower based on bona fide arms-length tenant leases requiring current rental payments and which are in full force and effect (provided, however, with respect to the calculations set forth in this §7.19(a)(ix)(A) the Net Rentable Area for any tenants which have more than 10,000 square feet under lease and which have vacated their space shall be excluded from the total Net Rentable Area of the applicable Unencumbered Borrowing Base Property when making such calculation), and (B) an aggregate level of tenants (excluding the Borrower or any of its Affiliates) under leases in such Unencumbered Borrowing Base Properties (but not any tenant having under lease 25,000 square feet or more on a holdover or month-to-month basis) which are paying rent and which are not in default of at least eighty-five percent (85%) of the Net Rentable Area within such Unencumbered Borrowing Base Properties for the previous fiscal quarter of the Borrower based on bona fide arms-length tenant leases requiring current rental payments and which are in full force and effect.  Notwithstanding the foregoing, Borrower may temporarily remove an Unencumbered Borrowing Base Property from the foregoing occupancy calculations with respect to an Unencumbered Borrowing Base Property (x) that is a Redevelopment Property, (y) which is being voluntarily redeveloped by Borrower to reposition such property and (z) which Agent has approved in writing as a property that can be excluded from such calculation.  Without limiting the foregoing, the Agent shall not be required to approve the removal of such property from the foregoing calculation if redevelopment is as a result of a default, insolvency, lease termination or other act or circumstance affecting a tenant of such Unencumbered Borrowing Base Property.  Such property shall be excluded from the foregoing occupancy calculations until the date that is twenty-four (24) months following the initial approval of such Unencumbered Borrowing Base Property as a Redevelopment Property for the purposes of this §7.19;

 

(x)           no more than ten percent (10%) of the Borrowing Base Availability of the Unencumbered Borrowing Base Properties shall be properties leased by Borrower or a Subsidiary Guarantor as the lessee or tenant under a Ground Lease; and

 

(xi)          other than with respect to the Unencumbered Borrowing Base Property commonly known as Tel-Twelve located in Southfield, Michigan, no Unencumbered Borrowing Base Property shall contribute more than ten percent (10%) of the Borrowing Base Availability of all of the Unencumbered Borrowing Base Properties.

 

(b)           In the event that all or any material portion of any Real Estate within the Unencumbered Borrowing Base Properties shall be damaged or taken by condemnation, then such Real Estate shall no longer be a part of the Unencumbered Borrowing Base Properties unless and until (i) any damage to such Real Estate is repaired or restored, such Real Estate becomes fully operational and the Agent shall receive evidence satisfactory to the Agent of the Operating Cash Flow of such Real Estate following such repair or restoration (both at such time and prospectively) or (ii) Agent shall receive evidence satisfactory to the Agent that the Operating Cash Flow of such Real Estate (both at such time and prospectively) shall not be materially adversely affected by such damage or condemnation.

 

  

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(c)           In the event that any Subsidiary of the Borrower that is not a Guarantor owns Real Estate which would otherwise qualify as an Unencumbered Borrowing Base Property and the Borrower desires for the same to become an Unencumbered Borrowing Base Property, then such property may become an Unencumbered Borrowing Base Property but only in the event that all of the terms and conditions of this §7.19(c) and §5.2 are satisfied:

 

(i)           Such Subsidiary shall be a Subsidiary Guarantor;

 

(ii)           The organizational agreements of such Subsidiary or such other resolutions or consents satisfactory to Agent shall specifically authorize such Subsidiary to guaranty the Obligations and to pledge the assets of such Subsidiary as security for the Obligations and the Borrower shall certify to the Agent that applicable law does not preclude such Subsidiary from executing such guaranty or pledging its assets to secure the Obligations;

 

(iii)          All covenants, agreements, and representations in the Loan Documents herein of the Borrower and the Guarantors and their Subsidiaries shall be true and correct with respect to such Subsidiary Guarantor;

 

(iv)         No Default or Event of Default shall exist or might exist in the event that such Subsidiary becomes a Subsidiary Guarantor or acquires such assets; and

 

(v)          The Real Estate assets acquired or owned by such Subsidiary Guarantor shall qualify as Unencumbered Borrowing Base Properties hereunder.

 

(d)           Upon any Unencumbered Borrowing Base Property ceasing to qualify as an Unencumbered Borrowing Base Property, such Unencumbered Borrowing Base Property shall no longer be included in the calculation of the Borrowing Base Availability nor shall the Operating Cash Flow from such property be included for the purposes of §9.5.  Within five (5) Business Days after any such disqualification, the Borrower shall deliver to the Agent a certificate reflecting such disqualification, together with the identity of the disqualified Unencumbered Borrowing Base Property, a statement as to whether any Default or Event of Default arises as a result of such disqualification, and a calculation of the Borrowing Base Availability attributable to such Unencumbered Borrowing Base Property.  Simultaneously with the delivery of the items required pursuant above, the Borrower shall deliver to the Agent a pro forma Compliance Certificate demonstrating, after giving effect to such removal, replacement or disqualification, compliance with the covenants contained in §7.19 and §9.5.

 

(e)           In addition, the Borrower may voluntarily remove any Real Estate from the Unencumbered Borrowing Base Properties by delivering to the Agent, no later than five (5) Business Days prior to date on which such removal is to be effected, notice of such removal, together with a statement that no Default or Event of Default then exists or would, upon the occurrence of such event or with passage of time, result from such removal, and the identity of the Unencumbered Borrowing Base Property being removed, and a calculation of the Borrowing Base Availability attributable to such Unencumbered Borrowing Base Property.  Simultaneously with the delivery of the items required above, the Borrower shall deliver to the Agent a pro forma Compliance Certificate demonstrating, after giving effect to such removal, replacement or disqualification, compliance with the covenants contained in §7.19 and §9.5.

 

  

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§8.

	
CERTAIN NEGATIVE COVENANTS OF THE TRUST AND THE BORROWER.

 

The Borrower and the Trust, jointly and severally, covenant and agree that, so long as any Loan, Letter of Credit or Note is outstanding or any of the Banks has any obligation to make any Loans or to issue any Letters of Credit:

 

§8.1.                Restrictions on Indebtedness.  Except as permitted in §8.1(f) below, the Trust will not (other than solely as a result of its status as a general partner of the Borrower) create, incur, assume, guarantee or be or remain liable, contingently or otherwise with respect to any Indebtedness other than the Obligations and any Indebtedness of the Borrower permitted under the terms of this §8.1.  The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than:

 

(a)           Indebtedness to the Banks arising under any of the Loan Documents, and Indebtedness and obligations in respect of the Interest Rate Contract(s) required pursuant to §7.18;

 

(b)           current liabilities of the Borrower or its Subsidiaries incurred in the ordinary course of business but not incurred through (i) the borrowing of money, or (ii) the obtaining of credit except for credit on an open account basis customarily extended and in fact extended in connection with normal purchases of goods and services;

 

(c)           Indebtedness in respect of taxes, assessments, governmental charges or levies and claims for labor, materials and supplies to the extent that payment therefor shall not at the time be required to be made in accordance with the provisions of §7.8;

 

(d)           Indebtedness in respect of judgments or awards the existence of which does not create an Event of Default;

 

(e)           endorsements for collection, deposit or negotiation and warranties of products or services, in each case incurred in the ordinary course of business;

 

(f)           subject to the provisions of §9, (i) Non-recourse Indebtedness of the Borrower or any of its Subsidiaries (other than Subsidiary Guarantors), and (ii) Indebtedness of Borrower, the Trust or any of the Borrower’s Subsidiaries (other than Subsidiary Guarantors) under environmental indemnities and guarantees with respect to customary exceptions to exculpatory language with respect to Non-recourse Indebtedness of Borrower’s Subsidiaries or Unconsolidated Affiliates permitted pursuant to §8.3(i) (it being agreed that any such indemnity or guaranty shall not cause such Non-recourse Indebtedness to be deemed to be Recourse Indebtedness and provided that in the event any claim is made against Borrower, the Trust or any of their respective Subsidiaries with respect to such indemnities, guarantees or exceptions, the amount so claimed shall be considered a recourse liability of such Person);

 

(g)           Indebtedness in respect of reverse repurchase agreements having a term of not more than one hundred eighty (180) days with respect to Investments described in §8.3(d) or (e);

 

  

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(h)           subject to the provisions of §9, other Recourse Indebtedness (whether secured or unsecured) of the Borrower and its Subsidiaries provided that in no event shall Secured Recourse Indebtedness of Borrower in the aggregate exceed fifteen percent (15%) of Consolidated Total Adjusted Asset Value (provided that the liability under any completion guaranty shall equal the remaining costs to complete the applicable construction project in excess of construction loan or mezzanine loan proceeds available therefor and any equity deposited or invested for the payment of such costs; and provided further that Indebtedness of Borrower or any of its Subsidiaries with respect to the TIF Guaranty and any other guaranty obligation which the Majority Banks may in their sole discretion approve in writing shall not be included for the purposes of §8.1(h) unless (i) a claim shall have been made against the Trust, Borrower or a Subsidiary of either of them on account of such guaranty or (ii) with respect to any other guaranty obligation which the Majority Banks may in their sole discretion approve in writing to not be included for the purposes of §8.1(h), the occurrence of such other events with respect thereto as the Majority Banks may require in connection with their approval of such obligation).  The Subsidiary Guarantors may be liable with respect to Unsecured Indebtedness of the Borrower but not Secured Indebtedness; and

 

(i)            Indebtedness in respect of purchase money financing for equipment, computers and vehicles acquired in the ordinary course of the Borrower’s business not exceeding $5,000,000.00.

 

§8.2.                Restrictions on Liens Etc.  Neither the Trust nor the Borrower will, nor will either of them permit any of their respective Subsidiaries to, (a) create or incur or suffer to be created or incurred or to exist any lien, encumbrance, mortgage, pledge, charge, restriction or other security interest of any kind upon any of its property or assets of any character whether now owned or hereafter acquired, or upon the income or profits therefrom; (b) transfer any of its property or assets or the income or profits therefrom for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to payment of its general creditors; (c) acquire, or agree or have an option to acquire, any property or assets upon conditional sale or other title retention or purchase money security agreement, device or arrangement; (d) suffer to exist for a period of more than thirty (30) days after the same shall have been incurred any Indebtedness or claim or demand against it that if unpaid might by law or upon bankruptcy or insolvency, or otherwise, be given any priority whatsoever over its general creditors; (e) sell, assign, pledge or otherwise transfer any accounts, contract rights, general intangibles, chattel paper or instruments, with or without recourse; or (f) incur or maintain any obligation which prohibits the creation or maintenance of any lien securing the Obligations (collectively, “Liens”); provided that the Borrower, the Guarantors and any Subsidiary of any of them may create or incur or suffer to be created or incurred or to exist:

 

(i)            liens in favor of the Borrower or the Trust on all or part of the assets of Subsidiaries of such Person (but excluding any Unencumbered Borrowing Base Property, any Subsidiary Guarantor or any direct or indirect interest therein) securing Indebtedness owing by Subsidiaries of such Person to such Person;

 

(ii)           liens on properties to secure taxes, assessments and other governmental charges or claims for labor, material or supplies in respect of obligations not overdue or which are being contested as permitted by §7.8;

 

  

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(iii)          deposits or pledges made in connection with, or to secure payment of, workers’ compensation, unemployment insurance, old age pensions or other social security obligations;

 

(iv)         liens on properties or any interest therein (including the rents, issues and profits therefrom) (but excluding any Unencumbered Borrowing Base Property, any Subsidiary Guarantor or any direct or indirect interest therein) in respect of judgments or awards, the Indebtedness with respect to which is permitted by §8.1(d);

 

(v)          encumbrances on properties consisting of easements, rights of way, zoning restrictions, leases and other occupancy agreements, restrictions on the use of real property and defects and irregularities in the title thereto, landlord’s or lessor’s liens under leases to which the Borrower, a Guarantor or a Subsidiary of such Person is a party, and other minor non-monetary liens or encumbrances none of which interferes materially with the use of the property affected in the ordinary conduct of the business of the Borrower, the Guarantors or their Subsidiaries, which defects do not individually or in the aggregate have a materially adverse effect on the business of the Borrower or any Guarantor individually or of such Person and its Subsidiaries on a Consolidated basis;

 

(vi)         liens on the specific personal property acquired by Indebtedness permitted by §8.1(i); and

 

(vii)        liens on properties or interests therein (but excluding any Unencumbered Borrowing Base Property, any Subsidiary Guarantor or any direct or indirect interest therein) to secure Indebtedness permitted by §8.1(f) and §8.1(h) (including purchase money debt).

 

Without limiting the foregoing, the Borrower and the Trust shall not, and shall not permit any other Guarantor or any other Subsidiary to, create, assume, incur, permit or suffer to exist any Lien on any Unencumbered Borrowing Base Property or any direct or indirect ownership interest of the Borrower in any Subsidiary Guarantor other than the Liens permitted in §8.2(ii) and §8.2(v), or permit any Unencumbered Borrowing Base Property or any direct or indirect ownership interest in the Borrower or any Subsidiary Guarantor to be subject to any provision of a document or agreement (other than any Loan Document) which prohibits or purports to prohibit the creation or assumption of any Lien on such asset as security for Indebtedness of the Person owning such asset or any other Person.

 

§8.3.                Restrictions on Investments.  Neither the Borrower nor the Trust will, nor will either of them permit any of its Subsidiaries to, make or permit to exist or to remain outstanding any Investment except Investments in:

 

(a)           marketable direct or guaranteed obligations of the United States of America that mature within one (1) year from the date of purchase by the Borrower or its Subsidiary;

 

(b)           marketable direct obligations of any of the following: Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, Federal Home Loan Banks, Federal National Mortgage Association, Government National Mortgage Association, Bank for Cooperatives, Federal Intermediate Credit Banks, Federal Financing Banks, Export-Import Bank of the United States, Federal Land Banks, or any other agency or instrumentality of the United States of America;

 

  

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(c)           demand deposits, certificates of deposit, bankers acceptances and time deposits of United States banks having total assets in excess of $100,000,000; provided, however, that the aggregate amount at any time so invested with any single bank having total assets of less than $1,000,000,000 will not exceed $200,000;

 

(d)           [Intentionally Omitted];

 

(e)           [Intentionally Omitted];

 

(f)            repurchase agreements having a term not greater than ninety (90) days and fully secured by securities described in the foregoing subsection (a), (b) or (e) with banks described in the foregoing subsection (c) or with financial institutions or other corporations having total assets in excess of $500,000,000;

 

(g)           shares of so-called “money market funds” registered with the SEC under the Investment Company Act of 1940 which maintain a level per-share value, invest principally in investments described in the foregoing subsections (a) through (f) and have total assets in excess of $50,000,000;

 

(h)           the acquisition of fee interests by the Borrower or its Subsidiaries in Real Estate which is utilized principally for shopping centers, and, subject to the restrictions set forth in §8.3 and §8.9 for development of new shopping centers, the acquisition of undeveloped Real Estate;

 

(i)            Subsidiaries of the Borrower or the Trust that are not one hundred percent (100%) owned by the Borrower or the Trust or in Unconsolidated Affiliates, which Subsidiaries or Unconsolidated Affiliates are engaged in the ownership of Real Estate or development activity pursuant to §8.3 or §8.9, provided that in no event shall such Investments exceed fifteen percent (15%) of Borrower’s Consolidated Total Adjusted Asset Value in the aggregate without the prior written consent of the Required Banks;

 

(j)            (i) in any preferred stock issued by Trust which has been repurchased solely with the proceeds of a new issue of common or preferred stock issued by Trust, or (ii) in any common stock issued by Trust which has been repurchased by the Trust, Borrower or any of their respective Subsidiaries, provided that in no event shall such Investments pursuant to clause (ii) exceed in the aggregate $50,000,000.00 (calculated based upon the consideration given for such stock);

 

(k)           subject to the restrictions set forth in §8.9, (i) in securities of real estate investment trusts which own real property which is used principally for fee interests in Real Estate utilized principally for shopping centers located within the United States, and (ii) in mortgages and notes receivables, provided that in no event shall the aggregate costs of all Investments pursuant to this §8.3(k) exceed five percent (5%) of Borrower’s Consolidated Total Adjusted Asset Value in the aggregate.  For the purposes of this §8.3(k)(ii) only, notes receivable shall be valued at the lesser of face value (subject to reduction as a result of payments thereon) or book value determined in accordance with GAAP;

 

  

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(l)            whether directly or through a Subsidiary or Unconsolidated Affiliate, in development permitted by §8.9 which at any time has a total cost (including acquisition, construction and other costs), whether such total costs are incurred directly by the Borrower, the Trust or such Subsidiary or through an Investment in an Unconsolidated Affiliate permitted under this Agreement, individually for each development project that is not in excess of ten percent (10%) of the Consolidated Total Adjusted Asset Value of the Borrower, and in the aggregate for all development projects that is not in excess of fifteen percent (15%) of the Consolidated Total Adjusted Asset Value of the Borrower.  For the purposes of calculating the cost of developments by Subsidiaries or Unconsolidated Affiliates, the cost of such developments shall be based upon the Borrower’s interest in such Subsidiaries or Unconsolidated Affiliates.  For purposes of this §8.3(l) and §8.9, the term “total cost” shall not include (i) costs specifically reimbursable by tenants or shadow anchors (other than through rent or a gross up of rent), (ii) capitalized general and administrative expenses, or (iii) operating expenses and interest to the extent of operating income received from the applicable development property;

 

(m)           whether directly or through a Subsidiary or an Unconsolidated Affiliate, in undeveloped parcels of Real Estate which in the aggregate do not exceed five percent (5%) of the Consolidated Total Adjusted Asset Value of the Borrower, provided that the acquisition or holding of any outlots or property adjacent to any Real Estate owned by the Borrower (or any Subsidiary or Unconsolidated Affiliate thereof), the Trust or any Subsidiary thereof shall not be deemed to be an undeveloped parcel of Real Estate for this purpose and options and purchase agreements to acquire any property shall not be deemed an acquisition or holding of such property; and

 

(n)           Subsidiaries that are one hundred percent (100%) owned by the Borrower.

 

Notwithstanding the foregoing or §8.9, in no event shall the aggregate Investments of the Borrower, the Trust and their Subsidiaries in the Investments described in §8.3(i), (k), (l) and (m) exceed twenty-five percent (25%) of Borrower’s Consolidated Total Adjusted Asset Value at any time.

 

§8.4.                Merger, Consolidation.  Neither the Borrower nor the Trust will, nor will either of them permit any of its Subsidiaries to, become a party to any merger, consolidation or other business combination or disposition of all or substantially all of its assets except (a) the merger or consolidation of one or more of the Subsidiaries of the Borrower with and into the Borrower or (b) the merger or consolidation of two or more Subsidiaries of the Borrower.

 

§8.5.                Conduct of Business.  Neither the Borrower nor the Trust will conduct any of its business operations other than through the Borrower and its Subsidiaries; provided, however, that subject to §8.3(i) and §8.9, ownership of Real Estate and development activities may be conducted through Unconsolidated Affiliates of the Borrower as provided therein.  No reorganizations, spin-offs or new business lines shall be established or occur without the prior written consent of the Majority Banks.

 

  

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§8.6.                Compliance with Environmental Laws.  Neither the Borrower nor the Trust will, nor will either of them permit any of its Subsidiaries, to do any of the following: (a) use any of the Real Estate or any portion thereof as a facility for the handling, processing, storage or disposal of Hazardous Substances, except for such quantities of Hazardous Substances as are appropriate for a retail shopping center and used in the ordinary course of business and in compliance in all material respects with all applicable Environmental Laws, (b) cause or permit to be located on any of the Real Estate any underground tank or other underground storage receptacle for Hazardous Substances except in material compliance with Environmental Laws, (c) generate any Hazardous Substances on any of the Real Estate except in material compliance with Environmental Laws, (d) conduct any activity at any Real Estate or use any Real Estate in any manner so as to cause a Release of Hazardous Substances on, upon or into the Real Estate or any surrounding properties or any threatened Release of Hazardous Substances in any material amount which might give rise to liability under CERCLA or any other Environmental Law, or (e) directly or indirectly transport or arrange for the transport of any Hazardous Substances (except in material compliance with all Environmental Laws); provided that with respect to the foregoing clauses (a)-(e), with respect to Real Estate other than the Unencumbered Borrowing Base Properties, the Borrower and the Trust shall comply with the foregoing except to the extent such failure could not individually or in the aggregate have any material adverse effect upon the business or financial condition of the Borrower or the Trust.

 

The Borrower shall:

 

(i)           in the event of any change in Environmental Laws governing the assessment, release or removal of Hazardous Substances, which change would lead a prudent lender to require additional testing to avail itself of any statutory insurance or limited liability, take all action (including, without limitation, the conducting of engineering tests at the sole expense of the Borrower) to confirm that no Hazardous Substances are or ever were Released or disposed of on the Unencumbered Borrowing Base Properties; and

 

(ii)           if any Release or disposal of Hazardous Substances shall occur or shall have occurred on the Unencumbered Borrowing Base Properties (including without limitation any such Release or disposal occurring prior to the acquisition of such Unencumbered Borrowing Base Properties by the Borrower), cause the prompt containment and removal of such Hazardous Substances and remediation of the Unencumbered Borrowing Base Properties to the extent required by and in full compliance with all applicable laws and regulations and to the reasonable satisfaction of the Majority Banks; provided, that the Borrower shall be deemed to be in compliance with Environmental Laws for the purpose of this clause (ii) so long as it or a responsible third party with sufficient financial resources is taking reasonable action to remediate or manage any event of noncompliance to the reasonable satisfaction of the Majority Banks and no action shall have been commenced by any enforcement agency.  The Majority Banks may engage their own environmental consultant to review the environmental assessments and the Borrower’s compliance with the covenants contained herein.

 

  

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At any time after an Event of Default shall have occurred hereunder, or, whether or not an Event of Default shall have occurred, at any time that the Agent or the Majority Banks shall have reasonable grounds to believe that a Release or threatened Release of Hazardous Substances may have occurred, relating to any Unencumbered Borrowing Base Property, or that any of the Unencumbered Borrowing Base Properties is not in compliance with the Environmental Laws, the Agent may at its election (and will at the request of the Majority Banks) obtain such environmental assessments of such Unencumbered Borrowing Base Property prepared by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (i) whether any Hazardous Substances are present in the soil or water at or adjacent to such Unencumbered Borrowing Base Property and (ii) whether the use and operation of such Unencumbered Borrowing Base Property comply with all Environmental Laws.  Environmental assessments may include detailed visual inspections of such Unencumbered Borrowing Base Property including, without limitation, any and all storage areas, storage tanks, drains, dry wells and leaching areas, and the taking of soil samples, as well as such other investigations or analyses as are necessary or appropriate for a complete determination of the compliance of such Unencumbered Borrowing Base Property and the use and operation thereof with all applicable Environmental Laws.  All such environmental assessments shall be at the sole cost and expense of the Borrower.

 

§8.7.                Distributions.  Neither the Borrower nor the Trust shall make any Distributions which would cause it to violate any of the following covenants:

 

(a)           [Intentionally Omitted.]

 

(b)           The Borrower and the Trust shall not make any Distribution if such Distribution is in excess of the amount which, when added to the amount of all other Distributions paid in the same fiscal quarter and the preceding three (3) fiscal quarters would exceed ninety-five percent (95%) of their respective Funds from Operations for the four (4) consecutive fiscal quarters ending prior to the quarter in which such Distribution is paid; provided, however, notwithstanding the foregoing in this §8.7(b), Borrower and the Trust may, subject to the limitations set forth in this Agreement (including specifically, but without limitation, those contained in §8.7(b)) (i) redeem existing Preferred Equity with proceeds from an issuance of common equity or Preferred Equity of the Borrower or the Trust and (ii) repurchase common stock issued by the Trust in an amount not exceeding the limit set forth in §8.3(j)(ii), so long as in either case (A) no Event of Default shall have occurred and be continuing on the date of any such repurchase or redemption, (B) no Default or Event of Default shall occur as a result of any such repurchase or redemption, and (C)  with respect to any repurchase of common stock pursuant to §8.7(b)(ii), prior to any such repurchase Borrower shall have delivered to Agent pro forma evidence reasonably satisfactory to Agent that the ratio of Consolidated Total Liabilities to Consolidated Total Adjusted Asset Value (after giving effect to such repurchase) shall be less than fifty percent (50%).  Notwithstanding the foregoing, the Borrower may pay a Distribution to its partners of sums received by it pursuant to the Tax Indemnity Agreement;

 

(c)           In the event that an Event of Default shall have occurred and be continuing, neither the Borrower nor the Trust shall make any Distributions other than the minimum Distributions by the Borrower to the Trust and by the Trust required under the Code to maintain the REIT Status of the Trust, as evidenced by a certification of the principal financial or accounting officer of the Trust containing calculations in reasonable detail satisfactory in form and substance to Agent; provided, however, that neither Borrower nor the Trust shall be entitled to make any Distributions in connection with the repurchase of common or preferred stock of the Trust at any time after an Event of Default shall have occurred and be continuing; and

 

  

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(d)           Notwithstanding the foregoing, at any time when an Event of Default shall have occurred and the maturity of the Obligations has been accelerated, neither the Borrower nor the Trust shall make any Distributions whatsoever, directly or indirectly.

 

§8.8.                Asset Sales.  Neither the Borrower, the Trust nor any Subsidiary thereof shall sell, transfer or otherwise dispose of any individual Real Estate having a sales price in excess of $75,000,000.00 unless there shall have been delivered to the Agent a statement that no Default or Event of Default exists immediately prior to such sale, transfer or other disposition or would exist  after giving effect to such sale, transfer or other disposition.

 

§8.9.                Development Activity.  Neither the Borrower, the Trust nor any of their respective Subsidiaries shall engage, directly or indirectly, in any development except as expressly provided in §8.3(l) and (m) and this §8.9.  The Borrower, the Trust or any of their respective Subsidiaries may engage, either directly or, in the case of the Borrower, through any Subsidiary or Unconsolidated Affiliate of the Borrower, an Investment in which is permitted under §8.3(l), in the development of property to be used principally for retail shopping centers or a use ancillary thereto(except for the development commonly referred to as Aquia) which at any time has a total cost in excess of the limit set forth in §8.3(l), without the prior written consent of the Majority Banks.  For purposes of this §8.9, the term “development” shall include the new construction of a shopping center complex or the substantial renovation of improvements to real property which materially change the character or size thereof, but shall not include the addition of amenities or other related facilities to existing Real Estate which is already used principally for shopping centers; provided, however, that the term “development” shall not include demolition of existing structures performed by Borrower or the addition of an anchor store to an existing shopping center project provided that the construction of such improvements is performed by the tenant, and the Borrower (or any Subsidiary or Unconsolidated Affiliate thereof), the Trust or its respective Subsidiary, as applicable, is only obligated to reimburse such tenant for a fixed amount with respect to the cost of such construction upon completion of such construction by such tenant.  The Borrower and the Trust each acknowledges that the decision of the Majority Banks to grant or withhold such consent shall be based on such factors as the Majority Banks deem relevant in their sole discretion, including without limitation, evidence of sufficient funds both from borrowings and equity to complete such development and evidence that the Borrower (or any Subsidiary or Unconsolidated Affiliate thereof), the Trust or either of its Subsidiaries has the resources and expertise necessary to complete such project.  Nothing herein shall prohibit the Borrower, the Trust or any of their respective Subsidiaries thereof from entering into an agreement to acquire Real Estate which has been developed and initially leased by another Person.  Neither the Borrower (or any Subsidiary or Unconsolidated Affiliate thereof), the Trust nor any Subsidiary thereof shall acquire or hold any number of undeveloped parcels of Real Estate which in the aggregate exceed the limit set forth in §8.3(m) without the prior written consent of the Majority Banks, provided that the acquisition or holding of any outlots or property adjacent to any Real Estate owned by the Borrower (or any Subsidiary or Unconsolidated Affiliate thereof), the Trust or any Subsidiary thereof shall not be deemed to be an undeveloped parcel of Real Estate for this purpose and options and purchase agreements to acquire any property shall not be deemed an acquisition or holding of such property.  The undeveloped projects of the Borrower, the Trust and its Subsidiaries as of the Closing Date are set forth on Schedule 8.9 hereto.  Further, any new development project permitted under the terms of this §8.9 engaged in by the Borrower (or any Subsidiary or Unconsolidated Affiliate thereof), the Trust or any Subsidiary thereof, before any vertical construction commences on any phase of such project, shall be either (i) at least fifty percent (50%) pre-leased (based on the gross leasable area of the improvements to the development, or the phase of the development project being developed if the Borrower submits and the Agent agrees that the development consists of more than one (1) phase, excluding outlots), including all anchors in such phase (it being agreed that Borrower shall receive a credit against such occupancy requirement for any space to be occupied by an anchor that has been conveyed to such anchor), or under a purchase agreement to sell and all construction bids shall be in place, and any such development shall continue to be deemed an undeveloped parcel until such time as construction commences, or (ii) sufficiently pre-leased such that based on such leases the gross income from such leases upon completion of such project shall equal or exceed projected operating expenses (including reserves for expenses not paid on a monthly basis).  For purposes of this §8.9, property shall be deemed to be in development at all times that it is Under Development.

 

  

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§8.10.             [Intentionally Omitted.]

 

§8.11.             Trust Preferred Equity and Subordinated Debt.  The Borrower and the Trust shall not permit (a) the Trust Preferred Equity to exceed $50,000,000.00, or (b) the sum of the Trust Preferred Equity and Subordinated Debt to exceed in the aggregate $150,000,000 (provided that to the extent any such Trust Preferred Equity and Subordinated Debt exceeds such limits, such excess shall be considered Indebtedness for the purposes of this Agreement).  The Borrower and the Trust will not make or permit any amendment or modification to the indenture, note or other agreements evidencing or governing any Trust Preferred Equity or Subordinated Debt without Agent’s prior written approval, or directly or indirectly pay, prepay, defease or in substance defease, purchase, redeem, retire or otherwise acquire any Trust Preferred Equity or Subordinated Debt.

 

	
§9.

	
FINANCIAL COVENANTS OF THE TRUST AND THE BORROWER.

 

The Borrower and the Trust, jointly and severally, covenant and agree that, so long as any Loan, Letter of Credit or Note is outstanding or any Bank has any obligation to make any Loans or issue any Letters of Credit, each of them will comply with the following:

 

§9.1.                Liabilities to Assets Ratio.  Each of the Borrower and the Trust will not permit the ratio of its Consolidated Total Liabilities to Consolidated Total Adjusted Asset Value to exceed 60%.

 

§9.2.                Fixed Charges Coverage.  The Borrower will not permit the Borrower’s Consolidated Operating Cash Flow for the period covered by the four (4) previous consecutive fiscal quarters (treated as a single accounting period) to be less than 1.50 times the Fixed Charges of the Borrower and the Trust for such period; provided, however, that for purposes of determining compliance with this covenant, prior to such time as the Borrower has owned and operated a parcel of Real Estate for four (4) full fiscal quarters, the Operating Cash Flow with respect to such parcel of Real Estate for the number of full fiscal quarters which the Borrower has owned and operated such parcel of Real Estate as annualized shall be utilized.  Additionally, for the purposes of calculating Consolidated Operating Cash Flow under this §9.2, Operating Cash Flow attributable to any Redevelopment Property shall be included even if such Redevelopment Property is then being valued at cost for the purposes of calculating Borrower’s Consolidated Total Adjusted Asset Value.  For the purposes of this §9.2, the Operating Cash Flow and Debt Service attributable to any Real Estate and the principal indebtedness repaid as a part of such sale shall be excluded from the calculations when such Real Estate is sold.

 

  

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§9.3.                Consolidated Tangible Net Worth.  The Borrower will not permit its Consolidated Tangible Net Worth to be less than $625,000,000.00 plus seventy-five percent (75%) of any Net Offering Proceeds from Equity Offerings received by the Borrower or the Trust after December 31, 2011 (except to the extent of any of such Net Offering Proceeds from an issuance of common equity or Preferred Equity of the Borrower or the Trust which are used to retire an existing issue of preferred equity of Borrower or the Trust, respectively).

 

§9.4.                Secured Indebtedness.  The Borrower will not permit the Secured Indebtedness of the Borrower, Guarantors and their respective Subsidiaries to exceed forty percent (40%) of the Consolidated Total Adjusted Asset Value of the Borrower.

 

§9.5.                Borrowing Base Test.  The Borrower shall not at any time permit (i) the aggregate Unsecured Indebtedness of the Trust, the Borrower and their Subsidiaries (including, without limitation, the sum of the Outstanding Revolving Credit Loans, Outstanding Swing Line Loans, Outstanding Term Loans and Letter of Credit Liabilities) to exceed (ii) the Borrowing Base Availability.

 

	
§10.

	
CLOSING CONDITIONS.

 

The obligations of the Agent and the Banks to enter into this Agreement and to make the Loans or to issue Letters of Credit shall be subject to the satisfaction of the following:

 

§10.1.             Loan Documents.  Each of the Loan Documents shall have been duly executed and delivered by the respective parties thereto, shall be in full force and effect and shall be in form and substance reasonably satisfactory to the Agent.  The Agent shall have received a fully executed copy of each such document, except that each Bank shall have received a fully executed counterpart of its Note, if any.

 

§10.2.             Certified Copies of Organizational Documents.  The Agent shall have received from the Borrower a copy, certified as of a recent date by the appropriate officer of each State in which the Borrower, the Guarantors or any of their respective Subsidiaries, as applicable, is organized or in which the Real Estate is located and a duly authorized partner, member or officer of such Person, as applicable, to be true and complete, of the partnership agreement, corporate charter, declaration of trust or other organizational documents of the Borrower, the Guarantors, or any Subsidiary, as applicable, or its qualification to do business, as applicable, as in effect on such date of certification.

 

§10.3.             Resolutions.  All action on the part of the Borrower, the Guarantors, or any of their respective Subsidiaries as applicable, necessary for the valid execution, delivery and performance by such Person of this Agreement and the other Loan Documents to which such Person is or is to become a party shall have been duly and effectively taken, and evidence thereof satisfactory to the Agent shall have been provided to the Agent.  The Agent shall have received from the Trust true copies of the resolutions adopted by its board of directors authorizing the transactions described herein, each certified by its secretary as of a recent date to be true and complete.

 

  

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§10.4.             Incumbency Certificate; Authorized Signers.  The Agent shall have received incumbency certificates, dated as of the date of this Agreement, signed by a duly authorized officer of the Trust (with respect to the Borrower and the Guarantors) and giving the name and bearing a specimen signature of each individual who shall be authorized to sign, in the name and on behalf of the Borrower and the Guarantors, each of the Loan Documents to which such Person is or is to become a party.  The Agent shall have also received from the Borrower a certificate, dated as of the date of this Agreement, signed by a duly authorized officer of the Borrower and giving the name and specimen signature of each individual who shall be authorized to make Loan and Conversion Requests, and to give notices and to take other action on behalf of the Borrower under the Loan Documents.

 

§10.5.             Opinion of Counsel.  The Agent shall have received a favorable opinion addressed to the Banks and the Agent and dated as of the date of this Agreement, in form and substance satisfactory to the Banks and the Agent, from counsel of the Borrower and the Guarantors as to such matters as the Agent shall reasonably request.

 

§10.6.             Payment of Fees.  The Borrower shall have paid to KeyBank the fees required to be paid at closing pursuant to §4.2.

 

§10.7.             Performance; No Default.  The Borrower and Guarantors shall have performed and complied with all terms and conditions herein required to be performed or complied with by it on or prior to the Closing Date, and on the Closing Date there shall exist no Default or Event of Default.

 

§10.8.             Representations and Warranties.  The representations and warranties made by the Borrower, the Guarantors and their Subsidiaries in the Loan Documents or otherwise made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries in connection therewith or after the date thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the Closing Date.

 

§10.9.             Proceedings and Documents.  All proceedings in connection with the transactions contemplated by this Agreement and the other Loan Documents shall be reasonably satisfactory to the Agent and the Agent’s Special Counsel in form and substance, and the Agent shall have received all information and such counterpart originals or certified copies of such documents and such other certificates, opinions or documents as the Agent and the Agent’s Special Counsel may reasonably require.

 

§10.10.           Stockholder and Partner Consents.  The Agent shall have received evidence satisfactory to the Agent that all necessary stockholder, member and partner consents required in connection with the consummation of the transactions contemplated by this Agreement and the other Loan Documents have been obtained.

 

  

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§10.11.           Compliance Certificate.  A Compliance Certificate dated as of the date of this Agreement demonstrating compliance with each of the covenants calculated therein as of the most recent fiscal quarter end for which the Borrower or the Trust has provided financial statements under §6.4, adjusted in the best good faith estimate of the Borrower or the Guarantor, as applicable, dated as of the date of this Agreement shall have been delivered to the Agent.

 

§10.12.           Contribution Agreement.  The Agent shall have received a fully executed counterpart of the Contribution Agreement.

 

§10.13.           No Legal Impediment.  No change shall have occurred in any law or regulations thereunder or interpretations thereof that in the reasonable opinion of any Bank would make it illegal for such Bank to make such Loan.

 

§10.14.           Governmental Regulation.  Each Bank shall have received such statements in substance and form reasonably satisfactory to such Bank as such Bank shall require for the purpose of compliance with any applicable regulations of the Comptroller of the Currency or the Board of Governors of the Federal Reserve System.

 

§10.15.           Other.  The Agent shall have reviewed such other documents, instruments, certificates, opinions, assurances, consents and approvals as the Agent or the Agent’s Special Counsel may reasonably have requested.

 

	
§11.

	
CONDITIONS TO ALL BORROWINGS.

 

The obligations of the Banks to make any Loan or to issue Letters of Credit, whether on or after the date of this Agreement, shall also be subject to the satisfaction of the following conditions precedent:

 

§11.1.             Prior Conditions Satisfied.  All conditions set forth in §10 shall continue to be satisfied as of the date upon which any Loan is to be made or any Letter of Credit is to be issued.

 

§11.2.             Representations True; No Default.  Each of the representations and warranties made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries contained in this Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with this Agreement shall be true as of the date as of which they were made and shall also be true at and as of the time of the making of such Loan or the issuance of such Letter of Credit with the same effect as if made at and as of that time (except to the extent of changes resulting from transactions contemplated or permitted by this Agreement and the other Loan Documents and changes occurring in the ordinary course of business that singly or in the aggregate are not materially adverse, and except to the extent that such representations and warranties relate expressly to an earlier date) and no Default or Event of Default shall have occurred and be continuing.  The Agent shall have received a certificate of the Borrower and the Trust signed by an authorized officer of the Borrower and the Trust to such effect.

 

  

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§11.3.             Borrowing Documents.  In the case of any request for a Loan and/or a Letter of Credit, as applicable, the Agent (and Issuing Bank with respect to a request for a Letter of Credit) shall have received the request for a Revolving Credit Loan required by §2.5 in the form of Exhibit E hereto, fully completed and/or the Letter of Credit Application required by §2.9 in the form of Exhibit G hereto, fully completed.

 

	
§12.

	
EVENTS OF DEFAULT; ACCELERATION; ETC.

 

§12.1.             Events of Default and Acceleration.  If any of the following events (“Events of Default” or, if the giving of notice or the lapse of time or both is required, then, prior to such notice or lapse of time, “Defaults”) shall occur:

 

(a)           the Borrower shall fail to pay any principal of any of the Loans after the same shall become due and payable, whether at the stated date of maturity or any accelerated date of maturity or at any other date fixed for payment;

 

(b)           the Borrower shall fail to pay any interest on the Loans, any reimbursement obligations with respect to the Letters of Credit, or any other fees or sums due hereunder or under any of the other Loan Documents, within ten (10) days after the same shall become due and payable, whether at the stated date of maturity or any accelerated date of maturity or at any other date fixed for payment;

 

(c)           the Borrower or the Trust shall fail to comply with any covenant contained in §9, and such failure shall continue for thirty (30) days after written notice thereof shall have been given to the Borrower by the Agent; provided, however, that in the event that Borrower or the Trust shall fail to comply with §9.5, then the same shall not constitute a Default hereunder in the event that Borrower prepays the Loans or provides additional Unencumbered Borrowing Base Property in accordance with the terms of this Agreement in an amount sufficient such that Borrower and the Trust would be fully in compliance with the covenant set forth in §9.5 within five (5) days of the earlier to occur of (i) Borrower obtaining knowledge of such noncompliance, (ii) Borrower reporting any such noncompliance, or (iii) receipt by Borrower of written notice of such noncompliance from Agent; and provided further, that during any period in which Borrower or the Trust shall fail to be in compliance of any covenant in §9.5, then the Banks shall have no obligation to make Loans or to issue Letters of Credit;

 

(d)           the Borrower or any Guarantor or any of their respective Subsidiaries shall fail to perform any other term, covenant or agreement contained herein or in any of the other Loan Documents (other than those specified in this §12), and such failure shall continue for thirty (30) days after written notice thereof shall have been given to the Borrower by the Agent; provided, however, that in the event that such failure shall be a failure to comply with the terms of §8.7(b), the Borrower shall be afforded a period of one (1) fiscal quarter to cure such failure provided that the Distribution which caused such failure was historically consistent with prior dividends; provided, further that no cure period shall be available with respect to a failure to comply with the terms of §7.5(a) or §8.4;

 

(e)           any representation or warranty made by or on behalf of the Borrower, any Guarantor or any of their respective Subsidiaries in this Agreement or any other Loan Document, or in any report, certificate, financial statement, request for a Loan, or in any other document or instrument delivered pursuant to or in connection with this Agreement, any advance of a Loan or any of the other Loan Documents shall prove to have been false in any material respect upon the date when made or deemed to have been made or repeated;

 

  

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(f)            the Borrower, any Guarantor or any of their respective Subsidiaries shall fail to pay at maturity, or within any applicable period of grace, any obligation for borrowed money or credit received or other Indebtedness (including, without limitation, any Derivatives Contract), or fail to observe or perform any material term, covenant or agreement contained in any agreement by which it is bound, evidencing or securing any such borrowed money or credit received or other Indebtedness (including, without limitation, any Derivatives Contract)for such period of time as would permit (assuming the giving of appropriate notice if required) the holder or holders thereof or of any obligations issued thereunder to accelerate the maturity thereof or require the prepayment or purchase thereof, provided that the events described in this §12.1(f) shall not constitute an Event of Default unless such failure to perform, together with other failures to perform as described in this §12.1(f), involve singly or in the aggregate obligations for Recourse Indebtedness totaling in excess of $10,000,000.00 or Non-recourse Indebtedness totaling in excess of $30,000,000.00;

 

(g)           the Borrower, any Guarantor or any of their respective Subsidiaries, (i) shall make an assignment for the benefit of creditors, or admit in writing its general inability to pay or generally fail to pay its debts as they mature or become due, or shall petition or apply for the appointment of a trustee or other custodian, liquidator or receiver of any such Person or of any substantial part of the assets of any thereof, (ii) shall commence any case or other proceeding relating to any such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, or (iii) shall take any action to authorize or in furtherance of any of the foregoing;

 

(h)           a petition or application shall be filed for the appointment of a trustee or other  custodian, liquidator or receiver of any of the Borrower, any Guarantor or any of their respective Subsidiaries or any substantial part of the assets of any thereof, or a case or other proceeding shall be commenced against any such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, and any such Person shall indicate its approval thereof, consent thereto or acquiescence therein or such petition, application, case or proceeding shall not have been dismissed within sixty (60) days following the filing or commencement thereof;

 

(i)            a decree or order is entered appointing any trustee, custodian, liquidator or receiver or adjudicating any of the Borrower, any Guarantor or any of their respective Subsidiaries bankrupt or insolvent, or approving a petition in any such case or other proceeding, or a decree or order for relief is entered in respect of any such Person in an involuntary case under federal bankruptcy laws as now or hereafter constituted;

 

(j)            there shall remain in force, undischarged, unsatisfied and unstayed, for more than sixty (60) days, whether or not consecutive, any uninsured final judgment against any of the Borrower, any Guarantor or any of their respective Subsidiaries that, with other outstanding uninsured final judgments, undischarged, against such Persons exceeds in the aggregate $10,000,000.00;

 

  

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(k)           any of the Loan Documents or the Contribution Agreement shall be canceled, terminated, revoked or rescinded otherwise than in accordance with the terms thereof or with the express prior written agreement, consent or approval of the Banks, or any action at law, suit in equity or other legal proceeding to cancel, revoke or rescind any of the Loan Documents or the Contribution Agreement shall be commenced by or on behalf of the Borrower, any Guarantor, any of their respective Subsidiaries or any of their respective holders of Voting Interests, or any court or any other governmental or regulatory authority or agency of competent jurisdiction shall make a determination that, or issue a judgment, order, decree or ruling to the effect that, any one or more of the Loan Documents or the Contribution Agreement is illegal, invalid or unenforceable in accordance with the terms thereof;

 

(l)            any dissolution, termination, partial or complete liquidation, merger or consolidation of the Borrower or the Trust or any of their respective Subsidiaries or any sale, transfer or other disposition of the assets of the Borrower, the Trust or any of their respective Subsidiaries other than as permitted under the terms of this Agreement or the other Loan Documents;

 

(m)          any suit or proceeding shall be filed against the Borrower or any Guarantor or any of their respective Subsidiaries or any of their respective assets which in the good faith business judgment of the Majority Banks after giving consideration to the likelihood of success of such suit or proceeding and the availability of insurance to cover any judgment with respect thereto and based on the information available to them if adversely determined, would have a materially adverse effect on the ability of the Borrower, any Guarantor or any of their respective Subsidiaries to perform each and every one of its obligations under and by virtue of the Loan Documents and such suit or proceeding is not dismissed within sixty (60) days following the filing or commencement thereof;

 

(n)           the Borrower, any Guarantor, any of their respective Subsidiaries or any Person so connected with them shall be indicted for a federal crime, a punishment for which could include the forfeiture of any assets of Borrower, any Guarantor or any of their respective Subsidiaries, including the Real Estate;

 

(o)           with respect to any Guaranteed Pension Plan, an ERISA Reportable Event shall have occurred and the Majority Banks shall have determined in their reasonable discretion that such event reasonably could be expected to result in liability of the Borrower, any Guarantor or any of their respective Subsidiaries to the PBGC or such Guaranteed Pension Plan in an aggregate amount exceeding $1,000,000 and such event in the circumstances occurring reasonably could constitute grounds for the termination of such Guaranteed Pension Plan by the PBGC or for the appointment by the appropriate United States District Court of a trustee to administer such Guaranteed Pension Plan; or a trustee shall have been appointed by the United States District Court to administer such Plan or the PBGC shall have instituted proceedings to terminate such Guaranteed Pension Plan;

 

(p)           a Change of Control shall occur;

 

  

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(q)           Dennis Gershenson shall cease to be active on a daily basis in the management of the Trust and the Borrower and a competent and experienced successor for such Person shall not be approved by the Majority Banks within six (6) months of such event, such approval not to be unreasonably withheld;

 

(r)            any Event of Default (as defined in any of the other Loan Documents) shall occur; or

 

(s)           The Borrower and the Guarantor and any of their respective Subsidiaries shall fail to pay at maturity, or within any applicable period of grace, any Subordinated Debt, or fail to observe or perform any material term, covenant or agreement contained in any agreement by which it is bound, evidencing or securing any such Subordinated Debt for such period of time as would permit (assuming the giving of appropriate notice if required) the holder or holders thereof or of any obligations issued thereunder to accelerate the maturity thereof or require a redemption, retirement, prepayment, purchase or defeasance thereof;

 

then, and in any such event, the Agent may, and upon the request of the Majority Banks shall, by notice in writing to the Borrower (in addition to the rights afforded under §12.3) (i) declare all amounts owing with respect to this Agreement, the Notes, the Letters of Credit and the other Loan Documents to be, and they shall thereupon forthwith become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower, and (ii) require the Borrower to immediately cash collateralize all outstanding Letters of Credit or obtain replacement letters of credit for such Letters of Credit, all in a manner satisfactory to the Issuing Bank and the Majority Banks, or alternatively upon demand by Agent, the Issuing Bank or the Majority Revolving Credit Banks in their absolute and sole discretion, and regardless of whether the conditions precedent in this Agreement for a Revolving Credit Loan have been satisfied, the Revolving Credit Banks will cause a Revolving Credit Loan to be made in the undrawn amount of all Letters of Credit, the proceeds of which will be pledged to and held by Agent as security for any amounts that become payable under the Letters of Credit and all other Obligations.  Upon any draws under Letters of Credit, at Agent’s sole discretion, Agent may apply any such amounts to the repayment of amounts drawn thereunder and upon the expiration of the Letters of Credit any remaining amounts will be applied to the payment of all other Obligations or if there are no outstanding Obligations and the Banks have no further obligation to make Revolving Credit Loans or issue Letters of Credit or if such excess no longer exists, such proceeds deposited by the Borrower will be released to the Borrower.  In the event of any Event of Default specified in §12.1(g), §12.1(h) or §12.1(i), all such amounts shall become immediately due and payable automatically without any requirement of presentment, demand, protest or other notice of any kind from any of the Banks or the Agent.

 

§12.2.             Limitation of Cure Periods.  Notwithstanding the provisions of subsections (b), (c) and (d) of §12.1, the cure periods provided therein shall not be allowed and the occurrence of a Default thereunder immediately shall constitute an Event of Default for all purposes of this Agreement and the other Loan Documents if, within the period of twelve (12) months immediately preceding the occurrence of such Default, there shall have occurred two (2) periods of cure or portions thereof under any one or more than one of said subsections.

 

  

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§12.3.             Termination of Commitments.  If any one or more Events of Default specified in §12.1(g), §12.1(h) or §12.1(i) shall occur, then immediately and without any action on the part of the Agent or any Bank any unused portion of the credit hereunder shall terminate and the Banks shall be relieved of all obligations to make Loans to the Borrower or to issue Letters of Credit for the account of the Borrower.  If any other Event of Default shall have occurred, the Agent, upon the election of the Majority Revolving Credit Banks, may by notice to the Borrower terminate the obligation to make Revolving Credit Loans to the Borrower or to issue Letters of Credit for the account of the Borrower or upon the election of the Swing Line Lender may terminate the obligation to make Swing Line Loans to the Borrower.  No termination under this §12.3 shall relieve the Borrower of its obligations to the Banks arising under this Agreement or the other Loan Documents.

 

§12.4.             Remedies.  In case any one or more of the Events of Default shall have occurred and be continuing, and whether or not the Banks shall have accelerated the maturity of the Loans pursuant to §12.1, the Agent on behalf of the Banks may, with the consent of the Majority Banks but not otherwise, and upon the direction of the Majority Banks shall, proceed to protect and enforce their rights and remedies under this Agreement, the Notes, the Letters of Credit or any of the other Loan Documents by suit in equity, action at law or other appropriate proceeding, whether for the specific performance of any covenant or agreement contained in this Agreement and the other Loan Documents or any instrument pursuant to which the Obligations are evidenced, including to the full extent permitted by applicable law the obtaining of the ex parte appointment of a receiver, and, if such amount shall have become due, by declaration or otherwise, proceed to enforce the payment thereof or any other legal or equitable right.  No remedy herein conferred upon the Agent or the holder of any of the Obligations is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or any other provision of law.  In the event that all or any portion of the Obligations is collected by or through an attorney-at-law, the Borrower shall pay all costs of collection including, but not limited to, reasonable attorneys’ fees.

 

§12.5.             Distribution of Proceeds.  In the event that, following the occurrence or during the continuance of any Event of Default, any monies are received in connection with the enforcement of any of the Loan Documents, or otherwise with respect to the realization upon any of the assets of the Borrower or the Guarantors, such monies shall be distributed for application as follows:

 

(a)           First, to the payment of, or (as the case may be) the reimbursement of, the Agent for or in respect of all reasonable costs, expenses, disbursements and losses which shall have been incurred or sustained by the Agent in connection with the collection of such monies by the Agent, for the exercise, protection or enforcement by the Agent of all or any of the rights, remedies, powers and privileges of the Agent under this Agreement or any of the other Loan Documents or in support of any provision of adequate indemnity to the Agent against any taxes or liens which by law shall have, or may have, priority over the rights of the Agent to such monies;

 

(b)           Second, to all other Obligations in such order or preference as the Majority Banks shall determine; provided, however, that (i) Swing Line Loans shall be repaid first, (ii) distributions in respect of such Obligations shall be made pari passu among Obligations with respect to the Agent’s fee payable pursuant to §4.3 and all other Obligations, (iii) in the event that any Bank is a Defaulting Bank, payments to such Bank shall be governed by §2.12, (iv) Obligations owing to the Banks with respect to each type of Obligation such as interest, principal, fees and expenses, shall be made among the Banks pro rata, and as between Revolving Credit Loans and Term Loans shall be made pro rata, and (v) amounts received or realized from the Borrower shall be applied against the Obligations of the Borrower; and provided, further that the Majority Banks may in their discretion make proper allowance to take into account any Obligations not then due and payable; and

 

  

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(c)           Third, the excess, if any, shall be returned to the Borrower or to such other Persons as are entitled thereto.

 

§12.6.             Collateral Account.

 

(a)           As collateral security for the prompt payment in full when due of all Letter of Credit Liabilities, Swing Line Loans and the other Obligations, the Borrower hereby pledges and grants to the Agent, for the ratable benefit of the Agent and the Banks as provided herein, a security interest in all of its right, title and interest in and to the Collateral Account and the balances from time to time in the Collateral Account (including the investments and reinvestments therein provided for below).  The balances from time to time in the Collateral Account shall not constitute payment of any Letter of Credit Liabilities or Swing Line Loans until applied by the Agent as provided herein.  Anything in this Agreement to the contrary notwithstanding, funds held in the Collateral Account shall be subject to withdrawal only as provided in this section.

 

(b)           Amounts on deposit in the Collateral Account shall be invested and reinvested by the Agent in such Cash Equivalents as the Agent shall determine in its sole discretion.  All such investments and reinvestments shall be held in the name of and be under the sole dominion and control of the Agent for the ratable benefit of the Banks.  The Agent shall exercise reasonable care in the custody and preservation of any funds held in the Collateral Account and shall be deemed to have exercised such care if such funds are accorded treatment substantially equivalent to that which the Agent accords other funds deposited with the Agent, it being understood that the Agent shall not have any responsibility for taking any necessary steps to preserve rights against any parties with respect to any funds held in the Collateral Account.

 

(c)           If a drawing pursuant to any Letter of Credit occurs on or prior to the expiration date of such Letter of Credit, the Borrower and the Banks authorize the Agent to use the monies deposited in the Collateral Account to make payment to the beneficiary with respect to such drawing or the payee with respect to such presentment.  If a Swing Line Loan is not refinanced as a Base Rate Loan as provided in §2.10 above, then the Agent is authorized to use monies deposited in the Collateral Account to make payment to the Swing Line Lender with respect to any participation not funded by a Defaulting Bank.

 

(d)           If an Event of Default exists, the Majority Revolving Credit Banks may, in their discretion, at any time and from time to time, instruct the Agent to liquidate any such investments and reinvestments and apply proceeds thereof to the Obligations owed to the Revolving Credit Banks in accordance with §12.5.

 

  

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(e)           So long as no Default or Event of Default exists, and to the extent amounts on deposit in the Collateral Account exceed the aggregate amount of the Letter of Credit Liabilities then due and owing and the pro rata share of any Letter of Credit Obligations and Swing Line Loans of any Defaulting Bank after giving effect to §2.12(c), the Agent shall, from time to time, at the request of the Borrower, deliver to the Borrower within 10 Business Days after the Agent’s receipt of such request from the Borrower, against receipt but without any recourse, warranty or representation whatsoever, such of the balances in the Collateral Account as exceed the aggregate amount of the Letter of Credit Liabilities and Swing Line Loans at such time.

 

(f)            The Borrower shall pay to the Agent from time to time such reasonable fees as the Agent normally charges for similar services in connection with the Agent’s administration of the Collateral Account and investments and reinvestments of funds therein.  The Borrower authorizes Agent to file such financing statements as Agent may reasonably require in order to perfect Agent’s security interest in the Collateral Account, and Borrower shall promptly upon demand execute and deliver to Agent such other documents as Agent may reasonably request to evidence its security interest in the Collateral Account.

 

	
§13.

	
SETOFF.

 

Regardless of the adequacy of any collateral, during the continuance of any Event of Default, any deposits (general or specific, time or demand, provisional or final, regardless of currency, maturity, or the branch of where such deposits are held) or other sums credited by or due from any of the Banks to the Borrower or any Guarantor and any securities or other property of the Borrower or any Guarantor in the possession of such Bank may be applied to or set off against the payment of Obligations of such Person and any and all other liabilities, direct, or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, of such Person to such Bank; provided that no Bank shall exercise such right of setoff without the prior approval of the Agent, such approval to not be unreasonably withheld.  Each of the Banks agrees with each other Bank that if such Bank shall receive from the Borrower or any Guarantor, whether by voluntary payment, exercise of the right of setoff, or otherwise, and shall retain and apply to the payment of the Obligations owed to such Bank (but excluding any Swing Line Note) any amount in excess of its ratable portion of the payments received by all of the Banks with respect to the Obligations held by all of the Banks, such Bank will make such disposition and arrangements with the other Banks with respect to such excess, either by way of distribution, pro tanto assignment of claims, subrogation or otherwise as shall result in each Bank receiving in respect of the Obligations held by it its proportionate payment as contemplated by this Agreement; provided that if all or any part of such excess payment is thereafter recovered from such Bank, such disposition and arrangements shall be rescinded and the amount restored to the extent of such recovery, but without interest.  In the event that any Defaulting Bank shall exercise any such right of setoff, (a) all amounts so set off shall be paid over immediately to the Agent for further application in accordance with the provisions of this Agreement and, pending such payment, shall be segregated by such Defaulting Bank from its other funds and deemed held in trust for the benefit of the Agent and the Banks, and (b) the Defaulting Bank shall provide promptly to the Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Bank as to which it exercised such right of setoff.

 

  

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§14.

	
THE AGENT.

 

§14.1.             Authorization.  The Agent is authorized to take such action on behalf of each of the Banks and to exercise all such powers as are hereunder and under any of the other Loan Documents and any related documents delegated to the Agent, together with such powers as are reasonably incident thereto, provided that no duties or responsibilities not expressly assumed herein or therein shall be implied to have been assumed by the Agent.  The obligations of the Agent hereunder are primarily administrative in nature, and nothing contained in this Agreement or any of the other Loan Documents shall be construed to constitute the Agent as a trustee for any Bank or to create any agency or fiduciary relationship.  Agent shall act as the contractual representative of the Banks hereunder, and notwithstanding the use of the term “Agent” it is understood and agreed that Agent shall not have any fiduciary duties or responsibilities to any Bank or by reason of this Agreement or any of the other Loan Documents and is acting as an independent contractor, the rights and duties of which are limited to those expressly set forth in this Loan Agreement and the other Loan Documents.  The Borrower and any other Person shall be entitled to conclusively rely on a statement from the Agent that it has the authority to act for and bind the Banks pursuant to this Agreement and the other Loan Documents.

 

§14.2.             Employees and Agents.  The Agent may exercise its powers and execute its duties by or through employees or agents and shall be entitled to take, and to rely on, advice of counsel concerning all matters pertaining to its rights and duties under this Agreement and the other Loan Documents.  The Agent may utilize the services of such Persons as the Agent may reasonably determine, and all reasonable fees and expenses of any such Persons shall be paid by the Borrower.

 

§14.3.             No Liability.  Neither the Agent nor any of its shareholders, directors, officers or employees nor any other Person assisting them in their duties nor any agent, or employee thereof, shall be liable to any of the Banks for any waiver, consent or approval given or any action taken, or omitted to be taken, in good faith by it or them hereunder or under any of the other Loan Documents, or in connection herewith or therewith, or be responsible for the consequences of any oversight or error of judgment whatsoever, except that the Agent or such other Person, as the case may be, may be liable for losses due to its willful misconduct or gross negligence.  The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Agent for the account of the Banks, unless the Agent has received notice from a Bank or the Borrower referring to the Loan Documents and describing with reasonable specificity such Default or Event of Default and stating that such notice is a “notice of default”.

 

  

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§14.4.             No Representations.  The Agent shall not be responsible for the execution or validity or enforceability of this Agreement, the Notes, any of the other Loan Documents or any instrument at any time constituting, or intended to constitute, collateral security for the Obligations, or for the value of any such collateral security or for the validity, enforceability or collectability of any such amounts owing with respect to the Obligations, or for any recitals or statements, warranties or representations made herein or any agreement, instrument or certificate delivered in connection therewith or in any of the other Loan Documents or in any certificate or instrument hereafter furnished to it by or on behalf of the Borrower, the Guarantor or any of their respective Subsidiaries, or be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or in any other of the Loan Documents.  The Agent shall not be bound to ascertain whether any notice, consent, waiver or request delivered to it by the Borrower, the Guarantor, any of their respective Subsidiaries or any holder of any of the Obligations shall have been duly authorized or is true, accurate and complete.  The Agent has not made nor does it now make any representations or warranties, express or implied, nor does it assume any liability to the Banks, with respect to the creditworthiness or financial condition of the Borrower, the Guarantors or any of their respective Subsidiaries or the value of any of the other assets of the Borrower, the Guarantors or their respective Subsidiaries.  Each Bank acknowledges that it has, independently and without reliance upon the Agent or any other Bank, and based upon such information and documents as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Bank also acknowledges that it will, independently and without reliance upon the Agent or any other Bank, based upon such information and documents as it deems appropriate at the time, continue to make its own credit analysis and decisions in taking or not taking action under this Agreement and the other Loan Documents.  Agent’s Special Counsel has only represented Agent and KeyBank in connection with the Loan Documents and the only attorney-client relationship or duty of care is between Agent’s Special Counsel and Agent or KeyBank.  Each Bank has been independently represented by separate counsel on all matters regarding the Loan Documents.

 

§14.5.             Payments.

 

(a)           A payment by the Borrower or the Guarantors to the Agent hereunder or under any of the other Loan Documents for the account of any Bank shall constitute a payment to such Bank.  The Agent agrees to distribute to each Bank not later than one Business Day after the Agent’s receipt of good funds, determined in accordance with the Agent’s customary practices, such Bank’s pro rata share of payments received by the Agent for the account of the Banks except as otherwise expressly provided herein or in any of the other Loan Documents.  Notwithstanding anything to the contrary contained in this Agreement, if any Bank becomes a Defaulting Bank, then, until such time as such Bank is no longer a Defaulting Bank, each payment by the Borrower hereunder shall be applied in accordance with §2.12(d).  In the event the Borrower makes payments to Agent in immediately available funds on or before the time required in this Agreement for such payment, and Agent fails to distribute such amounts on the same Business Day as received, the Agent shall pay interest on such amount at a rate per annum equal to the Federal Funds Effective Rate from time to time in effect.

 

(b)           If in the opinion of the Agent the distribution of any amount received by it in such capacity hereunder, under the Notes or under any of the other Loan Documents might involve it in liability, it may refrain from making distribution until its right to make distribution shall have been adjudicated by a court of competent jurisdiction.  If a court of competent jurisdiction shall adjudge that any amount received and distributed by the Agent is to be repaid, each Person to whom any such distribution shall have been made shall either repay to the Agent its proportionate share of the amount so adjudged to be repaid or shall pay over the same in such manner and to such Persons as shall be determined by such court.  In the event that the Agent shall refrain from making any distribution of any amount received by it as provided in this §14.5(b), the Agent shall endeavor to hold such amounts in an interest bearing account and at such time as such amounts may be distributed to the Banks, the Agent shall distribute to each Bank, based on their respective Commitment Percentages, its pro rata share of the interest or other earnings from such deposited amount.

 

  

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§14.6.             Holders of Notes.  Subject to the terms of Article 18, the Agent may deem and treat the payee of any Obligation and any Note as the absolute owner or purchaser thereof for all purposes hereof until it shall have been furnished in writing with a different name by such payee or by a subsequent holder, assignee or transferee.

 

§14.7.             Indemnity.  The Banks ratably hereby agree to indemnify and hold harmless the Agent from and against any and all claims, actions and suits (whether groundless or otherwise), losses, damages, costs, expenses (including any expenses for which the Agent has not been reimbursed by the Borrower as required by § 15), and liabilities of every nature and character arising out of or related to this Agreement, the Notes, or any of the other Loan Documents or the transactions contemplated or evidenced hereby or thereby, or the Agent’s actions taken hereunder or thereunder, except to the extent that any of the same shall be directly caused by the Agent’s willful misconduct or gross negligence.

 

§14.8.             Agent as Bank.  In its individual capacity, the Bank acting as the Agent shall have the same obligations and the same rights, powers and privileges in respect to its Commitment and the Loans made by it, and as the holder of any of the Obligations and the Notes as it would have were it not also the Agent.

 

§14.9.             Resignation.  The Agent may resign at any time by giving thirty (30) days’ prior written notice thereof to the Banks and the Borrower.  The Majority Banks may remove the Agent from its capacity as Agent in the event of the Agent’s willful misconduct or gross negligence.  Any such removal or resignation shall also constitute Agent’s resignation as Swing Line Lender and may, at such Agent’s option, also constitute its resignation as Issuing Bank.  The Commitment Percentage of the Bank which is acting as Agent shall not be taken into account in the calculation of Majority Banks for the purposes of removing Agent in the event of the Agent’s willful misconduct or gross negligence.  Upon any such resignation, the Majority Banks shall have the right to appoint as a successor Agent, Swing Line Lender, and if applicable, Issuing Bank, any Bank or any bank whose senior debt obligations are rated not less than “A” or its equivalent by Moody’s Investors Service, Inc. or not less than “A” or its equivalent by Standard & Poor’s Rating Group Inc. and which has a net worth of not less than $500,000,000.  Unless a Default or Event of Default shall have occurred and be continuing, such successor Agent, Swing Line Lender and Issuing Bank shall be reasonably acceptable to the Borrower.  If no successor Agent, Swing Line Lender and, if applicable, Issuing Bank shall have been so appointed by the Majority Banks and shall have accepted such appointment within thirty (30) days after the retiring Agent’s giving of notice of resignation or the Majority Bank’s removal of the Agent, then the retiring Agent may, on behalf of the Banks, appoint a successor Agent, which shall be any Bank or a bank whose debt obligations are rated not less than “A” or its equivalent by Moody’s Investors Service, Inc. or not less than “A” or its equivalent by Standard & Poor’s Rating Group Inc. and which has a net worth of not less than $500,000,000.  Upon the acceptance of any appointment as Agent, Swing Line Lender and Issuing Bank, as applicable, hereunder by a successor Agent, such successor Agent, Swing Line Lender and, if applicable, Issuing Bank shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent, Swing Line Lender and, if applicable, Issuing Bank, and the retiring or removed Agent shall be discharged from its duties and obligations hereunder as Agent, Swing Line Lender and, if applicable, Issuing Bank.  If the resigning Agent shall also resign as the Issuing Bank, such successor Agent shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or shall make other arrangements satisfactory to the current Issuing Bank, in either case, to assume effectively the obligations of the current Agent with respect to such Letters of Credit.  After any retiring Agent’s resignation or removal, the provisions of this Agreement and the other Loan Documents shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Agent, Swing Line Lender and Issuing Bank.

 

  

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§14.10.           Duties in the Case of Enforcement.  In case one or more Events of Default have occurred and shall be continuing, and whether or not acceleration of the Obligations shall have occurred, the Agent may, and if so requested by the Majority Banks and the Banks have provided to the Agent such additional indemnities and assurances in accordance with their respective Commitment Percentages against expenses and liabilities as the Agent may reasonably request, shall proceed to exercise all or any legal and equitable and other rights or remedies as it may have.  The Majority Banks may direct the Agent in writing as to the method and the extent of any such exercise, the Banks hereby agreeing to indemnify and hold the Agent harmless in accordance with their respective Commitment Percentages from all liabilities incurred in respect of all actions taken or omitted in accordance with such directions, provided that the Agent need not comply with any such direction to the extent that the Agent reasonably believes the Agent’s compliance with such direction to be unlawful or commercially unreasonable in any applicable jurisdiction.

 

§14.11.           Bankruptcy.  In the event a bankruptcy or other insolvency proceeding is commenced by or against Borrower or any Guarantor with respect to the Obligations, the Agent shall have the sole and exclusive right to file and pursue a joint proof claim on behalf of all Banks.  Any votes with respect to such claims or otherwise with respect to such proceedings shall be subject to the vote of the Majority Banks, the Required Banks or all of the Banks as required by this Agreement.  Each Bank irrevocably waives its right to file or pursue a separate proof of claim in any such proceedings unless Agent fails to file such claim within thirty (30) days after receipt of written notice from the Banks requesting that Agent file such proof of claim.

 

§14.12.           Approvals.  If consent is required for some action under this Agreement, or except as otherwise provided herein an approval of the Banks, the Required Banks, the Majority Banks, the Majority Revolving Credit Banks or the Majority Term Loan Banks is required or permitted under this Agreement, each Bank agrees to give the Agent, within ten (10) Business Days of receipt of the request for action together with all reasonably requested information related thereto (or such lesser period of time required by the terms of the Loan Documents), notice in writing of  approval or disapproval (collectively “Directions”) in respect of any action requested or proposed in writing pursuant to the terms hereof.  If consent is required for the requested action, any Bank’s failure to respond to a request for Directions within the required time period shall be deemed to constitute a Direction to take such requested action.  In the event that any recommendation is not approved by the requisite number of Banks and a subsequent approval on the same subject matter is requested by Agent, then for the purposes of this paragraph each Bank shall be required to respond to a request for Directions within five (5) Business Days of receipt of such request.  Agent and each Bank shall be entitled to assume that any officer of the other Banks delivering any notice, consent, certificate or other writing is authorized to give such notice, consent, certificate or other writing unless Agent and such other Banks have otherwise been notified in writing.

 

  

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§14.13.           Borrower not Beneficiary.  Except for the provisions of §14.9 relating to the appointment of a successor Agent, the provisions of this §14 are solely for the benefit of the Agent and the Banks, may not be enforced by Borrower or any Guarantor, and except for the provisions of §14.9, may be modified or waived without the approval or consent of Borrower and Guarantors.

 

	
§15.

	
EXPENSES.

 

The Borrower agrees to pay (a) the reasonable costs of producing and reproducing this  Agreement, the other Loan Documents and the other agreements and instruments mentioned herein, (b) any taxes (including any interest and penalties in respect thereto) payable by the Agent or any of the Banks (other than taxes based upon the Agent’s or any Bank’s gross or net income, except that the Agent and the Banks shall be entitled to indemnification for any and all amounts paid by them in respect of taxes based on income or other taxes (other than pursuant to the Michigan Business Tax, M.C.L. §§208.1101 et seq., if any) on or with respect to the transactions contemplated by this Agreement, including any such taxes payable by the Agent or any of the Banks after the Closing Date (the Borrower hereby agreeing to indemnify the Agent and each Bank with respect thereto), (c) the reasonable fees, expenses and disbursements of the counsel to the Agent and any local counsel to the Agent incurred in connection with the preparation, administration or interpretation of the Loan Documents and other instruments mentioned herein (excluding, however, the preparation of agreements evidencing participation granted under §18.4), each closing hereunder, and amendments, modifications, approvals, consents or waivers hereto or hereunder, (d) the reasonable fees, expenses and disbursements of the Agent incurred by the Agent in connection with the preparation or interpretation of the Loan Documents and other instruments mentioned herein, and the making of each advance hereunder, (e) all reasonable out-of-pocket expenses (including reasonable attorneys’ fees and costs, which attorneys may be employees of any Bank or the Agent and the fees and costs of appraisers, engineers, investment bankers or other experts retained by any Bank or the Agent) incurred by any Bank or the Agent in connection with (i) the enforcement of or preservation of rights under any of the Loan Documents against the Borrower or the Guarantors or the administration thereof after the occurrence of a Default or Event of Default and (ii) any litigation, proceeding or dispute whether arising hereunder or otherwise, in any way related to the Agent’s or any of the Bank’s relationship with the Borrower or the Guarantors, (f) all reasonable fees, expenses and disbursements of the Agent incurred in connection with UCC searches, UCC filings, title rundowns or title searches, (g) all reasonable fees, expenses and disbursements (including reasonable attorneys’ fees and costs) which may be incurred by KeyBank and the Agent in connection with the execution and delivery of this Agreement and the other Loan Documents, (h) all reasonable fees and expenses and disbursements (including reasonable attorneys’ fees and costs), not to exceed $5,000.00 in the aggregate, which may be incurred by KeyBank in connection with each and every assignment of interests in the Loans pursuant to §18.1, and (i) all expenses relating to the use of Intralinks, SyndTrak or any other similar system for the dissemination and sharing of documents and information in connection with the syndication of the Loans.  The covenants of this §15 shall survive payment or satisfaction of payment of the Obligations.

 

  

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§16.

	
INDEMNIFICATION.

 

The Borrower and the Trust, jointly and severally, agree to indemnify and hold harmless the Agent, the Banks and the Arranger and each director, officer, employee, agent and Person who controls the Agent or any Bank from and against any and all claims, actions and suits, whether groundless or otherwise, and from and against any and all liabilities, losses, damages and expenses of every nature and character arising out of or relating to this Agreement or any of the other Loan Documents or the transactions contemplated hereby and thereby including, without limitation (a) any brokerage, finders or similar fees asserted against any Person indemnified under this §16 based upon any agreement, arrangement or action made or taken, or alleged to have been made or taken, by the Borrower, the Guarantors or any of their respective Subsidiaries, (b) any condition of the Real Estate, (c) any actual or proposed use by the Borrower or the Guarantors of the proceeds of any of the Loans or the Letters of Credit, (d) any actual or alleged infringement of any patent, copyright, trademark, service mark or similar right of any of the Borrower, the Guarantors or any of their respective Subsidiaries, (e) the Borrower entering into or performing this Agreement or any of the other Loan Documents, (f) any actual or alleged violation of any law, ordinance, code, order, rule, regulation, approval, consent, permit or license relating to the Real Estate, (g) with respect to the Borrower, the Guarantors and their respective Subsidiaries and their respective properties and assets, the violation of any Environmental Law, the Release or threatened Release of any Hazardous Substances or any action, suit, proceeding or investigation brought or threatened with respect to any Hazardous Substances (including, but not limited to, claims with respect to wrongful death, personal injury or damage to property), and (h) any use of Intralinks, SyndTrak or any other system for the dissemination and sharing of documents and information (other than any ongoing usage fees following the closing of the transactions contemplated by this Agreement), in each case including, without limitation, the reasonable fees and disbursements of counsel and allocated costs of internal counsel incurred in connection with any such investigation, litigation or other proceeding; provided, however, that neither the Borrower nor the Trust shall be obligated under this §16 to indemnify any Person for liabilities arising from such Person’s own gross negligence or willful misconduct as determined in a non-appealable judgment by a court of competent jurisdiction, any loss suffered solely to the extent they arise from violation of any such Person’s internal policies or from a violation of laws, rules or regulations applicable to such Person’s operations as determined in a non-appealable judgment by a court of competent jurisdiction, and with respect to matters described in §16(b), (f) or (g), any loss attributable to events, acts or circumstances first occurring after the period Agent and the Banks acquired a direct ownership interest (and not a Lien) in such Real Estate.  The immediately preceding proviso shall not be construed to require any Person to disclose confidential or proprietary information unless on terms and conditions reasonably satisfactory to such Person.  In litigation, or the preparation therefor, the Banks, the Agent and the Arranger shall be entitled to select a single nationally recognized law firm as their own counsel and, in addition to the foregoing indemnity, the Borrower and the Trust agree to pay promptly the reasonable fees and expenses of such counsel.  If, and to the extent that the obligations of the Borrower and the Trust under this §16 are unenforceable for any reason, the Borrower and the Trust hereby agree to make the maximum contribution to the payment in satisfaction of such obligations which is permissible under applicable law.  The provisions of this §16 shall survive any assignment by a Bank of its Commitment, the repayment of the Loans and the termination of the obligations of the Banks hereunder.

 

  

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§17.

	
SURVIVAL OF COVENANTS, ETC.

 

All covenants, agreements, representations and warranties made herein, in the Notes, in any of the other Loan Documents or in any documents or other papers delivered by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries pursuant hereto or thereto shall be deemed to have been relied upon by the Banks and the Agent, notwithstanding any investigation heretofore or hereafter made by any of them, and shall survive the making by the Banks of any of the Loans or the issuance of any Letter of Credit, as herein contemplated, and shall continue in full force and effect so long as any amount due under this Agreement or the Notes or any of the other Loan Documents remains outstanding or any Bank has any obligation to make any Loans or issue Letters of Credit.  The indemnification obligations of the Borrower and the Trust provided herein and the other Loan Documents shall survive the full repayment of amounts due and the termination of the obligations of the Banks hereunder and thereunder to the extent provided herein and therein.  All statements contained in any certificate or other paper delivered to any Bank or the Agent at any time by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries pursuant hereto or in connection with the transactions contemplated hereby shall constitute representations and warranties by such Person hereunder.

 

	
§18.

	
ASSIGNMENT AND PARTICIPATION.

 

§18.1.             Conditions to Assignment by Banks.  Except as provided herein, each Bank may assign to one or more banks or other entities all or a portion of its interests, rights and obligations under this Agreement (including all or a portion of its Commitment Percentage and Commitment and the same portion of the Loans at the time owing to it, and the Notes held by it); provided that (a) the Agent and the Issuing Bank shall have given their prior written consent to such assignment, which consent shall not be unreasonably withheld or delayed (provided that such consent shall not be required for any assignment to another Bank, to a Related Fund of such Bank, to a bank which is under common control with the assigning Bank or to a wholly-owned Subsidiary of such Bank provided that such assignee shall remain a wholly-owned Subsidiary or Related Fund of such Bank), (b) each such assignment shall be of a constant, and not a varying, percentage of all the assigning Bank’s rights and obligations under this Agreement with respect to the Revolving Credit Commitment in the event an interest in the Revolving Credit Loans is assigned, or of a constant, and not a varying, percentage of all of the assigning Bank’s rights and obligations under this Agreement with respect to the Term Loan Commitment in the event an interest in the Term Loan is assigned, (c) the parties to such assignment shall execute and deliver to the Agent, for recording in the Register (as hereinafter defined), an Assignment and Acceptance Agreement (an “Assignment and Acceptance Agreement”) in the form of Exhibit J hereto, together with any Notes subject to such assignment, (d) in no event shall any assignment be to any Person controlling, controlled by or under common control with, or which is not otherwise free from influence or control by, any of the Borrower or the Guarantors or be to a Defaulting Bank or an Affiliate of a Defaulting Bank, (e) such assignee of a portion of the Revolving Credit Loan shall have a net worth or unfunded capital commitments as of the date of such assignment of not less than $500,000,000 unless otherwise approved by Borrower and Agent, (f) such assignee shall acquire an interest in the Revolving Credit Loans of not less than $5,000,000 or in the Term Loans of not less than $1,000,000 unless such assignment is to another Bank or a Related Fund or unless such requirement is waived by the Borrower and the Agent, and (g) the assignor shall assign its entire interest in the Loans or retain an interest in the Loans of not less than $5,000,000 unless otherwise approved by Agent and Borrower.  Upon such execution, delivery, acceptance and recording, of such notice of assignment, (i) the assignee thereunder shall be a party hereto and all other Loan Documents executed by the Banks and, to the extent provided in such assignment, have the rights and obligations of a Bank hereunder, and (ii) the assigning Bank shall, to the extent provided in such assignment and upon payment to the Agent of the registration fee referred to in §18.2, be released from its obligations under this Agreement.  In connection with each assignment, the assignee shall represent and warrant to the Agent, the assignor and each other Bank as to whether such assignee is controlling, controlled by, under common control with or is not otherwise free from influence or control by, the Borrower or the Guarantors and whether such assignee is a Defaulting Bank or an Affiliate of a Defaulting Bank.  Upon any such assignment, the Agent may unilaterally amend Schedule 1.1 to reflect any such assignment.  In connection with any assignment of rights and obligations of any Defaulting Bank, 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 Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or actions, including funding, with the consent of the Borrower and the Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Bank 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 Bank to the Agent or any Bank 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 Swing Line Loans in accordance with its applicable Commitment Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Bank 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 Bank for all purposes of this Agreement until such compliance occurs.

 

  

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§18.2.             Register.  The Agent for itself and on behalf of the Borrower shall maintain a copy of each assignment delivered to it and a register or similar list (the “Register”) for the recordation of the names and addresses of the Banks and the Commitment Percentages of, and principal amount of the Loans owing to the Banks from time to time.  The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Agent and the Banks may treat each Person whose name is recorded in the Register as a Bank hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrower and the Banks at any reasonable time and from time to time upon reasonable prior notice.  Upon each such recordation, the assigning Bank agrees to pay to the Agent a registration fee in the sum of $3,500.  Contemporaneous assignments by a Bank to multiple Related Funds will be treated as a single assignment for the purposes of such registration fee.

 

§18.3.             New Notes.  Upon its receipt of an assignment executed by the parties to such assignment, together with each Note, if any, subject to such assignment, the Agent shall (a) record the information contained therein in the Register, and (b) give prompt notice thereof to the Borrower and the Banks (other than the assigning Bank).  Within five (5) Business Days after receipt of such notice, the Borrower, at its own expense, shall if requested execute and deliver to the Agent, in exchange for each surrendered Note, a new Note to the order of such assignee in an amount equal to the amount assumed by such assignee pursuant to such assignment and, if the assigning Bank has retained some portion of its obligations hereunder, a new Note to the order of the assigning Bank in an amount equal to the amount retained by it hereunder.  Such new Notes shall provide that they are replacements for the surrendered Notes, shall be in an aggregate principal amount equal to the aggregate principal amount of the surrendered Notes, shall be dated the effective date of such assignment and shall otherwise be in substantially the form of the assigned Notes.  The surrendered Notes shall be canceled and returned to the Borrower.

 

  

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§18.4.             Participations.  Each Bank may sell participations to one or more banks or other entities in all or a portion of such Bank’s rights and obligations under this Agreement and the other Loan Documents; provided that (a) any such sale or participation shall not affect the rights and duties of the selling Bank hereunder to the Borrower, (b) such participation shall not entitle such participant to any rights or privileges under this Agreement or any Loan Documents, including without limitation, the right to approve waivers, amendments or modifications, (c) such participant shall have no direct rights against the Borrower or the Guarantors except the rights granted to the Banks pursuant to §13, (d) such sale is effected in accordance with all applicable laws, and (e) such participant shall not be a Person controlling, controlled by or under common control with, or which is not otherwise free from influence or control by the Borrower or the Guarantors and shall not be a Defaulting Bank or an Affiliate of a Defaulting Bank.

 

§18.5.             Pledge by Bank.  Any Bank may at any time pledge all or any portion of its interest and rights under this Agreement (including all or any portion of its Note) to any of the twelve Federal Reserve Banks organized under §4 of the Federal Reserve Act, 12 U.S.C. §341 or, with Agent’s prior written approval, to another Person.  No such pledge or the enforcement thereof shall release the pledgor Bank from its obligations hereunder or under any of the other Loan Documents.  Any Term Loan Bank may with the consent of the Agent pledge all or any portion of its rights and interests under this Agreement (including all or any portion of its Term Loan Note) to a Person approved by Agent.

 

§18.6.             No Assignment by Borrower or the Trust.  Neither the Borrower nor the Trust shall assign or transfer any of its rights or obligations under any of the Loan Documents without the prior written consent of each of the Banks.

 

§18.7.             Disclosure.  The Borrower and the Trust each agrees that in addition to disclosures made in accordance with standard banking practices any Bank may disclose  information obtained by such Bank pursuant to this Agreement to assignees or participants and potential assignees or participants hereunder.  In addition, the Banks may make disclosure of such information to any contractual counterparty in swap agreements or such contractual counterparty’s professional advisors.

 

§18.8.             Amendments to Loan Documents.  Upon any such assignment or participation, the Borrower and the Trust shall, upon the request of the Agent, enter into such documents as may be reasonably required by the Agent to modify the Loan Documents to reflect such assignment or participation.

 

  

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§18.9.             Mandatory Assignment.  In the event Borrower requests that certain amendments, modifications or waivers be made to this Agreement or any of the other Loan Documents which request is approved by Agent but is not approved by one or more of the Banks (any such non-consenting Bank shall hereafter be referred to as the “Non-Consenting Bank”), then, within thirty (30) days after Borrower’s receipt of notice of such disapproval by such Non-Consenting Bank, Borrower shall have the right as to such Non-Consenting Bank, to be exercised by delivery of written notice delivered to the Agent and the Non-Consenting Bank within thirty (30) days of receipt of such notice, to elect to cause the Non-Consenting Bank to transfer its entire Commitment.  The Agent shall promptly notify the remaining Banks that each of such Banks shall have the right, but not the obligation, to acquire a portion of the Commitment, pro rata based upon their relevant Commitment Percentages, of the Non-Consenting Bank (or if any of such Banks does not elect to purchase its pro rata share, then to such remaining Banks in such proportion as approved by the Agent).  In the event that the Banks do not elect to acquire all of the Non-Consenting Bank’s Commitment, then the Agent shall endeavor to find a new Bank or Banks to acquire such remaining Commitment.  Upon any such purchase of the Commitment of the Non-Consenting Bank, the Non-Consenting Bank’s interests in the Obligations and its rights hereunder and under the Loan Documents shall terminate at the date of purchase, and the Non-Consenting Bank shall promptly execute and deliver any and all documents reasonably requested by Agent to surrender and transfer such interest, including, without limitation, an Assignment and Acceptance Agreement and such Non-Consenting Bank’s original Note.  Notwithstanding anything in this §18.9 to the contrary, any Bank or other Bank assignee acquiring some or all of the assigned Commitment of the Non-Consenting Bank must consent to the proposed amendment, modification or waiver.  The purchase price to be paid by the acquiring Banks for the Non-Consenting Bank’s Commitment shall equal the principal owed to such Non-Consenting Bank, and the Borrower shall pay to such Non-Consenting Bank in addition thereto and as a condition to such sale any and all other amounts outstanding and owed by Borrower to the Non-Consenting Bank hereunder or under any of the other Loan Documents, including all accrued and unpaid interest or fees which would be owed to such Non-Consenting Bank hereunder or under any of the other Loan Documents if the Loans were to be repaid in full on the date of such purchase of the Non-Consenting Bank’s Commitment.  No registration fee under §18.2 shall be required in connection with such assignment.

 

§18.10.           Titled Agents.  The Titled Agents shall not have any additional rights or obligations under the Loan Documents, except for those rights, if any, as a Bank.

 

	
§19.

	
NOTICES.

 

Each notice, demand, election or request provided for or permitted to be given pursuant to this Agreement (hereinafter in this §19 referred to as “Notice”) must be in writing and shall be deemed to have been properly given or served by personal delivery or by sending same by overnight courier or by depositing same in the United States Mail, postpaid and registered or certified, return receipt requested, or as expressly permitted herein, by telegraph, telecopy, telefax or telex, and addressed as follows:

 

  

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If to the Agent or KeyBank:

 

 

	 	
  

	
KeyBank National Association

	 	
  

	
1200 Abernathy Road, N.E.

	 	
  

	
Suite 1550

	 	
  

	
Atlanta, Georgia  30328

	 	
  

	
Attn:  Daniel Silbert

	 	
  

	
Telecopy No.:  (770) 510-2195

 

 

	
  

	
With a copy to:

 

 

	 	
  

	
McKenna Long & Aldridge LLP

	 	
  

	
5300 SunTrust Plaza

	 	
  

	
303 Peachtree Street

	 	
  

	
Atlanta, Georgia  30308

	 	
  

	
Attn:  William F. Timmons, Esq.

	 	
  

	
Telecopy No.:  (404) 527-4198

 

 

	
  

	
If to the Borrower or the Guarantor:

 

 

	 	
  

	
Ramco-Gershenson Properties, L.P.

	 	
  

	
Ramco-Gershenson Properties Trust

	 	
  

	
Suite 300

	 	
  

	
31500 Northwestern Highway

	 	
  

	
Farmington Hills, Michigan  48334

	 	
  

	
Attn:  Chief Financial Officer

	 	
  

	
Telecopy No.:  (248) 350-9925

 

 

	
  

	
With a copy to:

 

 

	 	
  

	
Honigman Miller Schwartz & Cohn LLP

	 	
  

	
Suite 100

	 	
  

	
38500 Woodward Avenue

	 	
  

	
Bloomfield Hills, Michigan  48304-5048

	 	
  

	
Attn:  Richard J. Burstein

	 	
  

	
Telecopy No.:  (248) 566-8431

 

to each other Bank a party hereto at the address for such party set forth on Schedule 1.1 hereto for such Bank, and to each other Bank which may hereafter become a party to this Agreement at such address as may be designated by such Bank.  Each Notice shall be effective upon being personally delivered or upon being sent by overnight courier or upon being deposited in the United States Mail as aforesaid, or if transmitted by facsimile, upon being sent and confirmation of receipt.  The time period in which a response to such Notice must be given or any action taken with respect thereto (if any), however, shall commence to run from the date of receipt if personally delivered or sent by overnight courier, or if so deposited in the United States Mail, the earlier of three (3) Business Days following such deposit or the date of receipt as disclosed on the return receipt, or if sent by facsimile, upon receipt or the next Business Day if received after 5:00 p.m. (Cleveland time) or on a day that is not a Business Day.  Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given shall be deemed to be receipt of the Notice sent.  By giving at least fifteen (15) days prior Notice thereof, the Borrower, the Trust, a Bank or Agent shall have the right from time to time and at any time during the term of this Agreement to change their respective addresses and each shall have the right to specify as its address any other address within the United States of America.

 

  

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§20.

	
RELATIONSHIP.

 

Neither the Agent nor any Bank has any fiduciary relationship with or fiduciary duty to the Borrower, the Guarantors or their respective Subsidiaries arising out of or in connection with this Agreement or the other Loan Documents or the transactions contemplated hereunder and thereunder, and the relationship between each Bank and the Borrower is solely that of a lender and borrower, and nothing contained herein or in any of the other Loan Documents shall in any manner be construed as making the parties hereto partners, joint venturers or any other relationship other than lender and borrower.

 

	
§21.

	
GOVERNING LAW: CONSENT TO JURISDICTION AND SERVICE.

 

THIS AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED THEREIN, ARE CONTRACTS UNDER THE LAWS OF THE STATE OF MICHIGAN AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SUCH STATE (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).  THE BORROWER AND THE TRUST EACH AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF OHIO OR THE STATE OF MICHIGAN OR ANY FEDERAL COURT SITTING THEREIN AND CONSENT TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER OR THE TRUST BY MAIL AT THE ADDRESS SPECIFIED IN §19.  THE BORROWER AND THE TRUST EACH HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

 

	
§22.

	
HEADINGS.

 

The captions in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

 

	
§23.

	
COUNTERPARTS.

 

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

 

  

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§24.

	
ENTIRE AGREEMENT, ETC.

 

The Loan Documents and any other documents executed in connection herewith or therewith express the entire understanding of the parties with respect to the transactions contemplated hereby.  Neither this Agreement nor any term hereof may be changed, waived, discharged or terminated, except as provided in §27.

 

	
§25.

	
WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS.

 

EACH OF THE BORROWER, THE TRUST, THE AGENT AND THE BANKS HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.  EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED BY LAW, THE BORROWER AND THE TRUST EACH HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES.  THE BORROWER AND THE TRUST EACH (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY BANK OR THE AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH BANK OR THE AGENT WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE AGENT AND THE BANKS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED IN THIS §25.

 

	
§26.

	
DEALINGS WITH THE BORROWER OR THE GUARANTORS.

 

The Agent, the Banks and their affiliates may accept deposits from, extend credit to, invest in, act as trustee under indentures of, serve as financial advisor of, and generally engage in any kind of banking, trust or other business with the Borrower, the Guarantors and their respective Subsidiaries or any of their affiliates regardless of the capacity of the Agent or the Bank hereunder.  The Banks acknowledge that, pursuant to such activities, the Agent, a Bank or its affiliates may receive information regarding such Persons (including information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent or such Bank, as applicable, shall be under no obligation to provide such information to them.

 

  

106

  

 

	
§27.

	
CONSENTS, AMENDMENTS, WAIVERS, ETC.

 

Except as otherwise expressly provided in this Agreement, any consent or approval required or permitted by this Agreement may be given and any term of this Agreement or of any other instrument related hereto or mentioned herein may be amended, and the performance or observance by the Borrower or the Guarantors of any terms of this Agreement or such other instrument or the continuance of any Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or prospectively) with, but only with, the written consent of the Majority Banks.  Notwithstanding the foregoing, (a) none of the following may occur without the written consent of each Bank affected thereby:  a decrease in the rate of interest on the Loans; except as otherwise provided herein, an extension of the Revolving Credit Maturity Date or the Term Loan Maturity Date; an increase or a non-pro rata reduction in the amount of the Commitments of the Banks except pursuant to §2.8 or §18.1; a forgiveness, reduction or waiver of the principal of any unpaid Loan or any interest thereon; the postponement of any date fixed for any payment of principal of or interest on the Loans; a decrease of the amount of any fee (other than late fees) payable to a Bank hereunder; the release of the Borrower or any Guarantor except as otherwise provided herein; a change in the manner of distribution of any payments to the Banks or the Agent; an amendment of the definition of Majority Banks, Required Banks, the Majority Revolving Credit Banks or the Majority Term Loan Banks or of any requirement for consent by the Majority Banks, the Required Banks, the Majority Revolving Credit Banks, the Majority Term Loan Banks or all of the Banks; or an amendment of this §27, and (b) the provisions of §9 and any of the definitions used therein may not be modified, amended or waived without the written consent of the Required Banks.  The amount of the Agent’s fee payable for the Agent’s account and the provisions of §14 may not be amended or waived without the written consent of the Agent.  The amount of the fees payable to the Issuing Bank and the provisions relating to the Issuing Bank and the Letters of Credit may not be amended or waived without the written consent of the Issuing Bank.  The provisions relating to Swing Line Loans or the Swing Line Lender may not be amended or waived without the written consent of the Swing Line Lender.  Notwithstanding anything to the contrary herein, no Defaulting Bank shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Banks or each affected Bank may be effected with the consent of the applicable Banks other than Defaulting Banks, except that the Commitment of any Defaulting Bank may not be increased without the consent of such Bank. The Borrower and the Guarantors each agrees to enter into such modifications or amendments of this Agreement or the other Loan Documents as may be reasonably requested by KeyBank in connection with the acquisition by each Bank acquiring all or a portion of the Commitment, provided that no such amendment or modification materially affects or increases any of the obligations of the Borrower or the Guarantors hereunder.  No waiver shall extend to or affect any obligation not expressly waived or impair any right consequent thereon.  No course of dealing or delay or omission on the part of the Agent or any Bank in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.  No notice to or demand upon the Borrower or the Guarantors shall entitle the Borrower and the Guarantors to other or further notice or demand in similar or other circumstances.

 

	
§28.

	
SEVERABILITY.

 

The provisions of this Agreement are severable, and if any one clause or provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction, and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision of this Agreement in any jurisdiction.

 

  

107

  

 

	
§29.

	
TIME OF THE ESSENCE.

 

Time is of the essence with respect to each and every covenant, agreement and obligation of the Borrower or the Trust under this Agreement and the other Loan Documents.

 

	
§30.

	
NO UNWRITTEN AGREEMENTS.

 

THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  ANY ADDITIONAL TERMS OF THE AGREEMENT BETWEEN THE PARTIES ARE SET FORTH BELOW.

 

	
§31.

	
REPLACEMENT OF NOTES.

 

Upon receipt of evidence reasonably satisfactory to Borrower of the loss, theft, destruction or mutilation of any Note, and in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory to Borrower or, in the case of any such mutilation, upon surrender and cancellation of the applicable Note, Borrower will execute and deliver, in lieu thereof, a replacement Note, identical in form and substance to the applicable Note and dated as of the date of the applicable Note and upon such execution and delivery all references in the Loan Documents to such Note shall be deemed to refer to such replacement Note.

 

	
§32.

	
TRUST EXCULPATION.

 

Subject to the terms of this paragraph, all persons having a claim against the Trust (as a Guarantor or general partner of Borrower), the general partner of the Borrower whose signature is affixed hereto as said general partner, hereunder or in connection with any matter that is the subject hereof, shall look solely to (i) the Trust’s interest and rights in the Borrower (as a general partner or limited partner), (ii) the amount of any Net Offering Proceeds not contributed to the Borrower, (iii) all accounts receivable, including the amount of any Distributions received by the Trust from the Borrower and not distributed to shareholders of the Trust as permitted by this Agreement, (iv) all rights and claims (including amounts paid under) the Tax Indemnity Agreement, (v) all cash and Short-term Investments in an amount in excess of $500,000.00, (vi) any other assets which the Trust may now own or hereafter acquire with the consent of Agent pursuant to §7.17, (vii) all documents and agreements in favor of the Trust in connection with any of the foregoing, (viii) all claims and causes of action arising from or otherwise related to any of the foregoing, and all rights and judgments related to any legal actions in connection with such claims or causes of action, and (ix) all extensions, additions, renewals and replacements, substitutions, products or proceeds of any of the foregoing (the “Attachable Assets”), and in no event shall the obligation of the Trust be enforceable against any shareholder, trustee, officer, employee or agent of the Trust personally.  In no event shall any person have any claim against:  (i) the cash, Short-term Investments of the Trust and the property described in Schedule 6.29 hereto, all under the heading of “Other Permitted Assets”, (ii) all documents and agreements in favor of the Trust in connection with any of the foregoing, (iii) all claims and causes of action arising from or otherwise related to any of the foregoing, and all rights and judgments related to any legal actions in connection with such claims or causes of action, and (iv) all extensions, additions, renewals and replacements, substitutions, products or proceeds of any of the foregoing (the “Other Permitted Assets”).  The Agent and the Banks have agreed to the terms of this §32 solely based upon the representation and covenant of Borrower and the Trust that the Trust does not and will not own any assets other than the Attachable Assets and the Other Permitted Assets.  Notwithstanding anything in this §32 to the contrary, the foregoing limitation on liability and recourse to the Trust (as a Guarantor or general partner of Borrower) shall be null and void and of no force and effect, and Agent and the Banks shall have full recourse against the Trust, individually as a Guarantor and in its capacity as general partner of Borrower, and to all of its assets (including, without limitation, the Other Permitted Assets) in the event that the Trust shall now or at any time hereafter own any asset other than or in addition to the Other Permitted Assets and the Attachable Assets.  Nothing herein shall limit the rights of the Agent and the Banks against the Borrower.

 

  

108

  

 

	
§33.

	
PATRIOT ACT.

 

Each Bank and the Agent (for itself and not on behalf of any Bank) hereby notifies the Borrower and Guarantors that, pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies Borrower, the Guarantors and their respective Subsidiaries, which information includes names and addresses and other information that will allow such Bank or the Agent, as applicable, to identify Borrower, the Guarantors and their respective Subsidiaries in accordance with the Patriot Act.

 

[SIGNATURE PAGES FOLLOW]

 

  

109

  

 

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as a sealed instrument as of the date first set forth above.

 

	  	
TRUST:

	 	 
	  	
RAMCO-GERSHENSON PROPERTIES TRUST, 

a Maryland real estate investment trust

	 	 	 
	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	  	  	  
	  	
BORROWER:

	 	 
	  	
RAMCO-GERSHENSON PROPERTIES, L.P., 

a Delaware limited partnership

	 	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, 

a Maryland real estate investment trust, its 

General Partner

	 	 	 
	 	 	 
	  	  	By:	 
	  	  	Name:	 
	  	  	Title:	 

 

 

 

 

[Signature Page to Third Amended and Restated Unsecured Master Loan Agreement]

 

  

110

  

 

	  	
BANKS:

	 	 
	  	
KEYBANK NATIONAL ASSOCIATION, 

individually and as Agent

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	 	 
	  	
BANK OF AMERICA, N.A.

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	 	 
	  	
JPMORGAN CHASE BANK, N.A.

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	 	 
	  	
PNC BANK, NATIONAL ASSOCIATION

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

 

[Signatures Continued on Next Page] 

 

 

 

 

[Signature Page to Third Amended and Restated Unsecured Master Loan Agreement]

 

 

111

 

 

	  	
RBS CITIZENS, N.A. d/b/a Charter One

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	  	
DEUTSCHE BANK TRUST COMPANY AMERICAS

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	  	
CAPITAL ONE, N.A.

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	  	
THE HUNTINGTON NATIONAL BANK

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	  	
COMERICA BANK

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	 	 
	 	 
	  	
BRANCH BANKING AND TRUST COMPANY

	 	 	 
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

  

 

 

 

 

[Signature Page to Third Amended and Restated Unsecured Master Loan Agreement]

 

  

112

  

 

EXHIBIT A

 

FORM OF REVOLVING CREDIT NOTE

 

 

	$_________________ 	 July 19, 2012

 

FOR VALUE RECEIVED, the undersigned RAMCO-GERSHENSON PROPERTIES, L.P., a Delaware limited partnership, hereby promises to pay to __________________________ ________or order, in accordance with the terms of that certain Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012 (the “Loan Agreement”), as from time to time in effect, among the undersigned, KeyBank National Association, for itself and as Agent, and such other Banks as may be from time to time named therein, to the extent not sooner paid, on or before the Revolving Credit Maturity Date, the principal sum of __________________________ Dollars ($_____________), or such amount as may be advanced by the payee hereof under the Loan Agreement as Revolving Credit Loans with daily interest from the date hereof, computed as provided in the Loan Agreement, on the principal amount hereof from time to time unpaid, at a rate per annum on each portion of the principal amount which shall at all times be equal to the rate of interest applicable to such portion in accordance with the Loan Agreement, and with interest on overdue principal and, to the extent permitted by applicable law, on overdue installments of interest and late charges at the rates provided in the Loan Agreement.  Interest shall be payable on the dates specified in the Loan Agreement, except that all accrued interest shall be paid at the stated or accelerated maturity hereof or upon the prepayment in full hereof.  Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Loan Agreement.

 

Payments hereunder shall be made to KeyBank National Association, as Agent for the payee hereof, at 127 Public Square, Cleveland, Ohio 44114-1306  or such other address as may be designated by Agent.

 

This Note is one of one or more Revolving Credit Notes evidencing borrowings under and is entitled to the benefits and subject to the provisions of the Loan Agreement.  The principal of this Note may be due and payable in whole or in part prior to the maturity date stated above and is subject to mandatory prepayment in the amounts and under the circumstances set forth in the Loan Agreement, and may be prepaid in whole or from time to time in part, all as set forth in the Loan Agreement.

 

Notwithstanding anything in this Note to the contrary, all agreements between the undersigned Borrower and the Banks and the Agent, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by the Banks exceed the maximum amount permissible under applicable law.  If, from any circumstance whatsoever, interest would otherwise be payable to the Banks in excess of the maximum lawful amount, the interest payable to the Banks shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Banks shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations of the undersigned Borrower and to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of the Obligations of the undersigned Borrower, such excess shall be refunded to the undersigned Borrower.  All interest paid or agreed to be paid to the Banks shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal of the Obligations of the undersigned Borrower (including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the maximum amount permitted by applicable law.  This paragraph shall control all agreements between the undersigned Borrower and the Banks and the Agent.

 

  

A - 1

  

 

In case an Event of Default shall occur, the entire principal amount of this Note may become or be declared due and payable in the manner and with the effect provided in said Loan Agreement.  In addition to and not in limitation of the foregoing and the provisions of the Loan Agreement hereinabove defined, the undersigned further agrees, subject only to any limitation imposed by applicable law, to pay all expenses, including reasonable attorneys’ fees and legal expenses, incurred by the holder of this Note in endeavoring to collect any amounts payable hereunder which are not paid when due, whether by acceleration or otherwise.

 

This Note shall be governed by and construed in accordance with the laws of the State of Michigan (without giving effect to the conflict of laws rules of any jurisdiction).

 

The undersigned maker and all guarantors and endorsers, hereby waive presentment, demand, notice, protest, notice of intention to accelerate the indebtedness evidenced hereby, notice of acceleration of the indebtedness evidenced hereby and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note, except as specifically otherwise provided in the Loan Agreement, and assent to extensions of time of payment or forbearance or other indulgence without notice.

 

This Note is issued pursuant to the Loan Agreement in substitution, amendment and restatement, and not in repayment of, the “Revolving Credit Notes” issued pursuant to the Prior Credit Agreement.

 

Recourse to the general partner of the Borrower shall be limited as provided in §32 of the Loan Agreement.

 

IN WITNESS WHEREOF the undersigned has by its duly authorized officers, executed this Note under seal as of the day and year first above written.

 

	  	
RAMCO-GERSHENSON PROPERTIES, L.P., 

a Delaware limited partnership

	 	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, a 

Maryland real estate investment trust, its 

General Partner

	 	 	 	 
	 	 	 	 
	  	  	
By:

	 
	  	  	  	  
	  	  	  	
Title:

	  

  

A - 2

  

 

EXHIBIT B

 

FORM OF TERM LOAN NOTE

 

 

	$_________________ 	 July 19, 2012

 

FOR VALUE RECEIVED, the undersigned RAMCO-GERSHENSON PROPERTIES, L.P., a Delaware limited partnership, hereby promises to pay to __________________________ ________or order, in accordance with the terms of that certain Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012 (the “Loan Agreement”), as from time to time in effect, among the undersigned, KeyBank National Association, for itself and as Agent, and such other Banks as may be from time to time named therein, to the extent not sooner paid, on or before the Term Loan Maturity Date, the principal sum of __________________________ Dollars ($_____________), with daily interest from the date hereof, computed as provided in the Loan Agreement, on the principal amount hereof from time to time unpaid, at a rate per annum on each portion of the principal amount which shall at all times be equal to the rate of interest applicable to such portion in accordance with the Loan Agreement, and with interest on overdue principal and, to the extent permitted by applicable law, on overdue installments of interest and late charges at the rates provided in the Loan Agreement.  Interest shall be payable on the dates specified in the Loan Agreement, except that all accrued interest shall be paid at the stated or accelerated maturity hereof or upon the prepayment in full hereof.  Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Loan Agreement.

 

Payments hereunder shall be made to KeyBank National Association, as Agent for the payee hereof, at 127 Public Square, Cleveland, Ohio 44114-1306  or such other address as may be designated by Agent.

 

This Note is one of one or more Term Loan Notes evidencing borrowings under and is entitled to the benefits and subject to the provisions of the Loan Agreement.  The principal of this Note may be due and payable in whole or in part prior to the maturity date stated above and is subject to mandatory prepayment in the amounts and under the circumstances set forth in the Loan Agreement, and may be prepaid in whole or from time to time in part, all as set forth in the Loan Agreement.

 

Notwithstanding anything in this Note to the contrary, all agreements between the undersigned Borrower and the Banks and the Agent, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by the Banks exceed the maximum amount permissible under applicable law.  If, from any circumstance whatsoever, interest would otherwise be payable to the Banks in excess of the maximum lawful amount, the interest payable to the Banks shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Banks shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations of the undersigned Borrower and to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of the Obligations of the undersigned Borrower, such excess shall be refunded to the undersigned Borrower.  All interest paid or agreed to be paid to the Banks shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal of the Obligations of the undersigned Borrower (including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the maximum amount permitted by applicable law.  This paragraph shall control all agreements between the undersigned Borrower and the Banks and the Agent.

 

  

B - 1

  

 

In case an Event of Default shall occur, the entire principal amount of this Note may become or be declared due and payable in the manner and with the effect provided in said Loan Agreement.  In addition to and not in limitation of the foregoing and the provisions of the Loan Agreement hereinabove defined, the undersigned further agrees, subject only to any limitation imposed by applicable law, to pay all expenses, including reasonable attorneys’ fees and legal expenses, incurred by the holder of this Note in endeavoring to collect any amounts payable hereunder which are not paid when due, whether by acceleration or otherwise.

 

This Note shall be governed by and construed in accordance with the laws of the State of Michigan (without giving effect to the conflict of laws rules of any jurisdiction).

 

The undersigned maker and all guarantors and endorsers, hereby waive presentment, demand, notice, protest, notice of intention to accelerate the indebtedness evidenced hereby, notice of acceleration of the indebtedness evidenced hereby and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note, except as specifically otherwise provided in the Loan Agreement, and assent to extensions of time of payment or forbearance or other indulgence without notice.

 

This Note is issued pursuant to the Loan Agreement in substitution, amendment and restatement, and not in repayment of, the “Term Loan Notes” issued pursuant to the Prior Credit Agreement.

 

Recourse to the general partner of the Borrower shall be limited as provided in §32 of the Loan Agreement.

 

IN WITNESS WHEREOF the undersigned has by its duly authorized officers, executed this Note under seal as of the day and year first above written.

 

	  	
RAMCO-GERSHENSON PROPERTIES, L.P., 

a Delaware limited partnership

	 	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, a 

Maryland real estate investment trust, its 

General Partner

	 	 	 	 
	 	 	 	 
	  	  	
By:

	  
	  	  	  	  
	  	  	  	
Title:

	  

 

  

B - 2

  

 

EXHIBIT C

 

FORM OF SWING LINE NOTE

 

 

	$____________ 	  July 19, 2012

 

FOR VALUE RECEIVED, the undersigned, RAMCO-GERSHENSON PROPERTIES, L.P., a Delaware limited partnership (“Maker”), hereby promises to pay to KEYBANK NATIONAL ASSOCIATION (“Payee”), or order, in accordance with the terms of that certain Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012, as from time to time in effect, among Maker, KeyBank National Association, for itself and as Agent, such other Banks as may be from time to time named therein (the “Loan Agreement”), and certain other parties, to the extent not sooner paid, on or before the Revolving Credit Maturity Date, the principal sum of _________________ ($__________), or such amount as may be advanced by the Payee under the Loan Agreement as a Swing Line Loan with daily interest from the date thereof, computed as provided in the Loan Agreement, on the principal amount hereof from time to time unpaid, at a rate per annum on each portion of the principal amount which shall at all times be equal to the rate of interest applicable to such portion in accordance with the Loan Agreement, and with interest on overdue principal and, to the extent permitted by applicable law, on overdue installments of interest and late charges at the rates provided in the Loan Agreement.  Interest shall be payable on the dates specified in the Loan Agreement, except that all accrued interest shall be paid at the stated or accelerated maturity hereof or upon the prepayment in full hereof.  Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Loan Agreement.

 

Payments hereunder shall be made to the Agent for the Payee at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other address as Agent may designate from time to time.

 

This Note is one of one or more Swing Line Notes evidencing borrowings under and is entitled to the benefits and subject to the provisions of the Loan Agreement.  The principal of this Note may be due and payable in whole or in part prior to the Revolving Credit Maturity Date and is subject to mandatory prepayment in the amounts and under the circumstances set forth in the Loan Agreement, and may be prepaid in whole or from time to time in part, all as set forth in the Loan Agreement.

 

Notwithstanding anything in this Note to the contrary, all agreements between the undersigned Maker and the Banks and the Agent, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by the Banks exceed the maximum amount permissible under applicable law.  If, from any circumstance whatsoever, interest would otherwise be payable to the Banks in excess of the maximum lawful amount, the interest payable to the Banks shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Banks shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations of the undersigned Maker and to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of the Obligations of the undersigned Maker, such excess shall be refunded to the undersigned Maker.  All interest paid or agreed to be paid to the Banks shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal of the Obligations of the undersigned Maker (including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the maximum amount permitted by applicable law.  This paragraph shall control all agreements between the undersigned Maker and the Banks and the Agent.

 

  

C - 1

  

 

In case an Event of Default shall occur, the entire principal amount of this Note may become or be declared due and payable in the manner and with the effect provided in said Loan Agreement.

 

This Note shall be governed by and construed in accordance with the laws of the State of Michigan (without giving effect to the conflict of laws rules of any jurisdiction).

 

Recourse to the general partner of Borrower shall be limited as provided in §32 of the Loan Agreement.

 

The undersigned Maker and all guarantors and endorsers hereby waive presentment, demand, notice, protest, notice of intention to accelerate the indebtedness evidenced hereby, notice of acceleration of the indebtedness evidenced hereby and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note, except as specifically otherwise provided in the Loan Agreement, and assent to extensions of time of payment or forbearance or other indulgence without notice.

 

IN WITNESS WHEREOF, the undersigned has duly executed this Note under seal on the day and year first above written.

 

	  	
BORROWER:

	 	 
	  	
RAMCO-GERSHENSON PROPERTIES, L.P., 

a Delaware limited partnership, by its sole general partner

	 	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, a 

Maryland real estate investment trust

	 	 	 	 
	 	 	 	 
	  	  	
By:

	  
	  	  	  	
Name:

	  	  	  	
Title:

 

  

C - 2

  

 

EXHIBIT D

 

FORM OF JOINDER AGREEMENT

 

THIS JOINDER AGREEMENT (“Joinder Agreement”) is executed as of __________________, 20__, by _______________________________, a __________________________ (“Joining Party”), and delivered to KeyBank National Association, as Agent, pursuant to §5.2 of the Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012, as from time to time in effect (the “Credit Agreement”), among Ramco-Gershenson Properties, L.P. (the “Borrower”), Ramco-Gershenson Properties Trust (the “Trust”), KeyBank National Association, for itself and as Agent, and the other Banks from time to time party thereto.  Terms used but not defined in this Joinder Agreement shall have the meanings defined for those terms in the Credit Agreement.

 

RECITALS

 

A.          Joining Party is required, pursuant to §5.2 of the Credit Agreement, to become an additional Subsidiary Guarantor under the Guaranty and the Contribution Agreement.

 

B.           Joining Party expects to realize direct and indirect benefits as a result of the availability to Borrower of the credit facilities under the Credit Agreement.

 

NOW, THEREFORE, Joining Party agrees as follows:

 

AGREEMENT

 

1.           Joinder.  By this Joinder Agreement, Joining Party hereby becomes a “Subsidiary Guarantor” and a “Guarantor” under the Credit Agreement, the Guaranty and the other Loan Documents with respect to all the Obligations of Borrower now or hereafter incurred under the Credit Agreement and the other Loan Documents, and a “Subsidiary Guarantor” under the Contribution Agreement.  Joining Party agrees that Joining Party is and shall be bound by, and hereby assumes, all representations, warranties, covenants, terms, conditions, duties and waivers applicable to a Subsidiary Guarantor and a Guarantor under the Credit Agreement, the Guaranty, the other Loan Documents and the Contribution Agreement.

 

2.           Representations and Warranties of Joining Party.  Joining Party represents and warrants to Agent that, as of the Effective Date (as defined below), except as disclosed in writing by Joining Party to Agent on or prior to the date hereof and approved by the Agent in writing (which disclosures shall be deemed to amend the Schedules and other disclosures delivered as contemplated in the Credit Agreement), the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects as applied to Joining Party as a Subsidiary Guarantor and a Guarantor on and as of the Effective Date as though made on that date.  As of the Effective Date, all covenants and agreements in the Loan Documents and the Contribution Agreement of the Subsidiary Guarantors are true and correct with respect to Joining Party and no Default or Event of Default shall exist or might exist upon the Effective Date in the event that Joining Party becomes a Subsidiary Guarantor.

 

  

D - 1

  

 

3.           Joint and Several.  Joining Party hereby agrees that, as of the Effective Date, the Guaranty and the Contribution Agreement heretofore delivered to the Agent and the Banks shall be a joint and several obligation of Joining Party to the same extent as if executed and delivered by Joining Party, and upon request by Agent, will promptly become a party to the Guaranty and the Contribution Agreement to confirm such obligation.

 

4.           Further Assurances.  Joining Party agrees to execute and deliver such other instruments and documents and take such other action, as the Agent may reasonably request, in connection with the transactions contemplated by this Joinder Agreement.

 

5.           GOVERNING LAW.  THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF MICHIGAN (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS RULES OF ANY JURISDICTION).

 

6.           Counterparts.  This Agreement may be executed in any number of counterparts which shall together constitute but one and the same agreement.

 

7.           The effective date (the “Effective Date”) of this Joinder Agreement is _________________, 20__.

 

IN WITNESS WHEREOF, Joining Party has executed this Joinder Agreement under seal as of the day and year first above written.

 

 

 

	  	
“JOINING PARTY”

	 	 
	  	
_________________________________________________________,

a ________________________________

	 	 	 
	  	By:	 
	  	
Name:

	 
	  	Title:	 
	 	 
	  	
[SEAL]

 

	
ACKNOWLEDGED:

	 
	
KEYBANK NATIONAL ASSOCIATION, as Agent

	 	 	 
	
By:

	  	  
	  	  	  
	
Its:

	  	  
	 	 
	
[Printed Name and Title]

	  

 

  

D - 2

  

 

EXHIBIT E

 

FORM OF REQUEST FOR LOAN

 

KeyBank National Association, as Agent

1200 Abernathy Road, N.E.

Suite 1550

Atlanta, Georgia  30328

Attn:  Mr. Daniel L. Silbert

 

Ladies and Gentlemen:

 

Pursuant to the provisions of §2.5 of the Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012 as from time to time in effect (the “Credit Agreement”), among Ramco-Gershenson Properties, L.P. (the “Borrower”), Ramco-Gershenson Properties Trust (the “Trust”), KeyBank National Association, for itself and as Agent, and the other Banks from time to time party thereto, the undersigned Borrower and the Trust hereby request and certify as follows:

 

1.           Loan.  The undersigned Borrower hereby requests a Revolving Credit Loan under §2.1 of the Credit Agreement:

 

Principal Amount: $                                                                          

 

 

Type (LIBOR, Base Rate):                                                               

 

 

Drawdown Date:                                                     , 201_

 

 

Interest Period:                                                                              

 

 

by credit to the general account of the undersigned Borrower with the Agent at the Agent’s Head Office.

 

2.           Use of Proceeds.  Such Loan shall be used for purposes permitted by §7.11 of the Credit Agreement.

 

3.           No Default.  The undersigned chief executive officer, chief financial or chief accounting officer of the Trust and the general partner of the Borrower certifies that each of the Borrower and the Guarantors is and will be in compliance with all covenants under the Loan Documents after giving effect to the making of the Loan requested hereby.  No condemnation proceedings are pending or to the Borrower’s knowledge threatened against any Unencumbered Borrowing Base Property except as disclosed in writing to the Agent.

 

  

E - 1

  

 

4.           Representations True.  Each of the representations and warranties made by or on behalf of the Borrower, the Guarantors and their respective Subsidiaries contained in the Credit Agreement, in the other Loan Documents or in any document or instrument delivered pursuant to or in connection with the Credit Agreement was true as of the date as of which it was made and shall also be true at and as of the Drawdown Date for the Loan requested hereby, with the same effect as if made at and as of such Drawdown Date (except to the extent of changes resulting from transactions contemplated or permitted by the Credit Agreement and the other Loan Documents and changes occurring in the ordinary course of business that singly or in the aggregate are not materially adverse, and except to the extent that such representations and warranties relate expressly to an earlier date) and no Default or Event of Default has occurred and is continuing.

 

5.           Other Conditions.  All other conditions to the making of the Loan requested hereby set forth in §11 of the Credit Agreement have been satisfied.

 

6.           Drawdown Date.  Except to the extent, if any, specified by notice actually received by the Agent prior to the Drawdown Date specified above, the foregoing representations and warranties shall be deemed to have been made by the Borrower on and as of such Drawdown Date.

 

7.           Definitions.  Terms defined in the Credit Agreement are used herein with the meanings so defined.

 

IN WITNESS WHEREOF, we have hereunto set our hands this ___ day of _____________, 201___.

 

 

	  	
RAMCO-GERSHENSON PROPERTIES, L.P., a 

Delaware limited partnership

	 	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, its 

General Partner

	 	 	 	 
	 	 	 	 
	  	  	
By:

	  
	  	  	  	
Title:

	  
	 	 
	 	 
	 	 
	  	
RAMCO-GERSHENSON PROPERTIES TRUST

	 	 	 
	  	
By:

	  
	  	
Title:

	  

 

  

E - 2

  

 

EXHIBIT F

 

FORM OF SWING LINE LOAN NOTICE

 

Date:  ___________, _____

 

	
To:

	
KeyBank National Association, as Swing Line Lender

	
  

	
KeyBank National Association, as Agent

	
  

	
1200 Abernathy Road, N.E.

	
  

	
Suite 1550

	
  

	
Atlanta, Georgia  30328

	
  

	
Attn:  Daniel L. Silbert

 

Ladies and Gentlemen:

 

Reference is made to that certain Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among RAMCO-GERSHENSON PROPERTIES, L.P. (the “Borrower”), RAMCO-GERSHENSON PROPERTIES TRUST (the “Trust”) the Banks from time to time party thereto, and KeyBank National Association, as Agent, Swing Line Lender, and certain other parties.

 

The undersigned hereby requests a Swing Line Loan:

 

1.            On ____________________________ (a Business Day).

 

2.            In the amount of $__________________.

 

The Swing Line Borrowing requested herein complies with the requirements of the provisos to the first sentence of §2.10(a) of the Agreement.

 

	  	
BORROWER:

	 	 
	  	
RAMCO-GERSHENSON PROPERTIES, L.P., 

a Delaware limited partnership, by its sole general partner

	 	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, a 

Maryland real estate investment trust

	 	 	 	 
	 	 	 	 
	  	  	
By:

	  
	  	  	  	
Name:

	  	  	  	
Title:

  

F - 1

  

 

EXHIBIT G

 

LETTER OF CREDIT APPLICATION

 

 

 

 

  

G - 1

  

 

EXHIBIT H

 

FORM OF REQUEST FOR EXTENSION OF LOANS

 

 

KeyBank National Association, as Agent

1200 Abernathy Road, N.E.

Suite 1550

Atlanta, Georgia  30328

Attention:  Daniel L. Silbert

 

Ladies and Gentlemen:

 

Pursuant to the provisions of §4.15 of the Third Amended and Restated Unsecured Master Loan Agreement, dated as of July 19, 2012, as amended, restated, extended, supplemented or otherwise modified from time to time (the “Loan Agreement”), among RAMCO-GERSHENSON PROPERTIES, L. P., a Delaware limited partnership (“Borrower”), RAMCO-GERSHENSON PROPERTIES TRUST, a Maryland real estate investment trust (the “Trust”) and KeyBank National Association, as a Bank and as Agent, and the other Banks from time to time party thereto, Borrower hereby requests and certifies as follows:

 

1.           Extension Request.  Borrower hereby irrevocably requests that the Revolving Credit Maturity Date be extended to July 19, 2017.

 

2.           No Default.  The undersigned chief financial or chief accounting officer of Borrower certifies that no Default or Event of Default has occurred and is continuing.

 

3.           Other Conditions.  All other conditions to the extension to the Revolving Credit Maturity Date requested hereby set forth in §4.15 of the Loan Agreement have been satisfied.

 

4.           Definitions.  Terms defined in the Loan Agreement are used herein with the meanings so defined.

 

[remainder of page intentionally left blank]

 

  

H - 1

  

 

IN WITNESS WHEREOF, I have hereunto set my hand this _____ day of ______________, 201___.

 

 

	  	
BORROWER:

	 	 
	  	
RAMCO-GERSHENSON PROPERTIES, L.P., 

a Delaware limited partnership, by its sole general partner

	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, a 

Maryland real estate investment trust

	 	 	 
	 	 	 
	  	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

  

H - 2

  

 

EXHIBIT I

 

FORM OF COMPLIANCE CERTIFICATE

 

KeyBank National Association, as Agent

1200 Abernathy Road, N.E.

Suite 1550

Atlanta, Georgia  30328

Attn:  Mr. Daniel L. Silbert

 

Ladies and Gentlemen:

 

Reference is made to the Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012 (the “Loan Agreement”) by and among Ramco-Gershenson Properties, L.P. (the “Borrower”), Ramco-Gershenson Properties Trust (the “Trust”), KeyBank National Association, for itself and as Agent, and the other Banks from time to time party thereto.  Terms defined in the Loan Agreement and not otherwise defined herein are used herein as defined in the Loan Agreement.

 

Pursuant to the Loan Agreement, the Borrower is furnishing to you herewith (or have most recently furnished to you) the financial statements of the Borrower, the Trust and their respective Subsidiaries for the fiscal period ended _____________________ (the “Balance Sheet Date”).  Such financial statements have been prepared in accordance with GAAP and present fairly the financial position of the Borrower, the Trust and the Subsidiaries covered thereby at the date thereof and the results of their operations for the periods covered thereby, subject in the case of interim statements only to normal year-end audit adjustments.

 

This certificate is submitted in compliance with requirements of §7.4(e) or §10.11 of the Loan Agreement or such other provision of the Loan Agreement requiring the delivery of a Compliance Certificate.  If this certificate is provided under a provision other than §7.4(e), the calculations provided below are made using the financial statements of the Borrower, the Trust and their respective Subsidiaries as of the Balance Sheet Date adjusted in the best good-faith estimate of the Borrower and the Trust to give effect to the making of a Loan, acquisition or disposition of property or other event that occasions the preparation of this certificate; and the nature of such event and the Borrower’s and the Guarantor’s estimate of its effects are set forth in reasonable detail in an attachment hereto.  The undersigned officer is the chief financial or chief accounting officer of the Trust and of the general partner of the Borrower.

 

The undersigned officers have caused the provisions of the Loan Documents to be reviewed and have no knowledge of any Default or Event of Default.  [Note: If the signers do have knowledge of any Default or Event of Default, the form of certificate should be revised to specify the Default or Event of Default, the nature thereof and the actions taken, being taken or proposed to be taken by the Borrower and the Trust with respect thereto.]

 

The Borrower and the Trust are attaching hereto the Borrowing Base Property Certificate and supporting information.

 

The Borrower and the Trust are providing the attached information to demonstrate compliance as of the date hereof with the covenants described in the attachment hereto.

 

  

I - 1

  

 

IN WITNESS WHEREOF, we have hereunto set our hand this ____ day of _____________, 201__.

 

 

	  	
RAMCO-GERSHENSON PROPERTIES, L.P.

	 	 	 
	  	
By:

	
Ramco-Gershenson Properties Trust, its General Partner

	 	 	 	 
	 	 	 	 
	  	  	
By:

	  
	  	  	  	  
	  	  	
Title:

	  
	 	 
	 	 
	  	
RAMCO-GERSHENSON PROPERTIES TRUST

	 	 	 
	  	
By:

	  
	  	  	  
	  	
Title:

	  

  

I - 2

  

 

APPENDIX A

 

TO

 

COMPLIANCE CERTIFICATE

[SEE ATTACHED]

 

 

  

I - 3

  

 

EXHIBIT J

 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

THIS ASSIGNMENT AND ACCEPTANCE AGREEMENT (this “Agreement”) dated _____________, _____, by and between _________________________________ (“Assignor”), and ____________________________ (“Assignee”).

 

W I T N E S E T H:

 

WHEREAS, Assignor is a party to that certain Third Amended and Restated Unsecured Master Loan Agreement dated as of July 19, 2012, by and among Ramco-Gershenson Properties, L.P., a Delaware limited partnership (“Borrower”), Ramco-Gershenson Properties Trust (the “Trust”), KeyBank National Association, the other Banks that are or may become a party thereto, and KeyBank National Association, as Agent (the “Loan Agreement”); and

 

WHEREAS, Assignor desires to transfer to Assignee a [Revolving Credit] [Term Loan] Commitment under the Loan Agreement and its rights with respect to the Commitment assigned and its Outstanding Loans with respect thereto;

 

NOW, THEREFORE, for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

1.           Definitions.  Terms defined in the Loan Agreement and used herein without definition shall have the respective meanings assigned to such terms in the Loan Agreement.

 

2.           Assignment.

 

(a)           Subject to the terms and conditions of this Agreement and in consideration of the payment to be made by Assignee to Assignor pursuant to Paragraph 5 of this Agreement, effective as of the “Assignment Date” (as defined in Paragraph 7 below), Assignor hereby irrevocably sells, transfers and assigns to Assignee, without recourse, a $_______________ [Revolving Credit] [Term Loan] Commitment, and a ____________________ percent (_____%) [Revolving Credit] [Term Loan] Commitment Percentage, and a corresponding interest in and to all of the other rights and obligations under the Loan Agreement and the other Loan Documents (the assigned interests being hereinafter referred to as the “Assigned Interests”), including Assignor’s share of all outstanding [Revolving Credit] [Term] Loans with respect to the Assigned Interests and the right to receive interest and principal on and all other fees and amounts with respect to the Assigned Interests, all from and after the Assignment Date, all as if Assignee were an original Bank under and signatory to the Loan Agreement having a [Revolving Credit] [Term Loan] Commitment Percentage equal to the amount of the respective Assigned Interests.

 

(b)           Assignee, subject to the terms and conditions hereof, hereby assumes all obligations of Assignor with respect to the Assigned Interests from and after the Assignment Date as if Assignee were an original Bank under and signatory to the Loan Agreement, which obligations shall include, but shall not be limited to, the obligation to make [Revolving Credit] [Term] Loans to the Borrower with respect to the Assigned Interests and to indemnify the Agent as provided therein (such obligations, together with all other obligations set forth in the Loan Agreement and the other Loan Documents are hereinafter collectively referred to as the “Assigned Obligations”).  Assignor shall have no further duties or obligations with respect to, and shall have no further interest in, the Assigned Obligations or the Assigned Interests.

 

  

J - 1

  

 

3.           Representations and Requests of Assignor.

 

(a)           Assignor represents and warrants to Assignee (i) that it is legally authorized to, and has full power and authority to, enter into this Agreement and perform its obligations under this Agreement; (ii) that as of the date hereof, before giving effect to the assignment contemplated hereby the amount of Assignor’s [Revolving Credit] [Term Loan] Commitment is $____________ and the aggregate outstanding principal balance of the [Revolving Credit] [Term] Loans made by it equals $____________, and (iii) that it has forwarded to the Agent the [Revolving Credit] [Term Loan] Note held by Assignor, if any.  Assignor makes no representation or warranty, express or implied, and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Documents or the execution, legality, validity, enforceability, genuineness or sufficiency of any Loan Document or any other instrument or document furnished pursuant thereto or in connection with the Loan, the collectability of the Loans, the continued solvency of the Borrower or the Guarantors or the continued existence, sufficiency or value of any assets of the Borrower or the Guarantors which may be realized upon for the repayment of the Loans, or the performance or observance by the Borrower or the Guarantors of any of their respective obligations under the Loan Documents to which it is a party or any other instrument or document delivered or executed pursuant thereto or in connection with the Loan; other than that it is the legal and beneficial owner of, or has the right to assign, the interests being assigned by it hereunder and that such interests are free and clear of any adverse claim.

 

(b)           If the applicable box is checked below, Assignor requests that the Agent obtain replacement notes for each of Assignor and Assignee as provided in the Loan Agreement.

 

  Replacement Note Requested for Assignor

 

  Replacement Note Requested for Assignee

 

4.           Representations of Assignee.  Assignee makes and confirms to the Agent, Assignor and the other Banks all of the representations, warranties and covenants of a Bank under Articles 14 and 18 of the Loan Agreement.  Without limiting the foregoing, Assignee (a) represents and warrants that it is legally authorized to, and has full power and authority to, enter into this Agreement and perform its obligations under this Agreement; (b) confirms that it has received copies of such documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; (c) agrees that it has and will, independently and without reliance upon Assignor, any other Bank, the Agent or any Titled Agent and based upon such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in evaluating the Loans, the Loan Documents, the creditworthiness of the Borrower and the Guarantors and the value of any assets of the Borrower and the Guarantors, and taking or not taking action under the Loan Documents; (d) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers as are reasonably incidental thereto pursuant to the terms of the Loan Documents; (e) agrees that, by this Assignment, Assignee has become a party to and will perform in accordance with their terms all the obligations which by the terms of the Loan Documents are required to be performed by it as a Bank; (f) represents and warrants that Assignee is not a Person controlling, controlled by or under common control with, or which is not otherwise free from influence or control by, any of the Borrower or the Guarantors and is not a Defaulting Bank or an Affiliate of a Defaulting Bank; (g) agrees that if Assignee is not incorporated under the laws of the United States of America or any State, it has on or prior to the date hereof delivered to Borrower and Agent certification as to its exemption or non-exemption from deduction or withholding of any United States federal income taxes; and (h) if Assignee is an assignee of a portion of the Revolving Credit Loans, it has a net worth or unfunded capital commitment as of the date hereof of not less than $500,000,000.00 unless waived in writing by Borrower and Agent.

 

  

J - 2

  

 

5.           Payments to Assignor.  In consideration of the assignment made pursuant to Paragraph 1 of this Agreement, Assignee agrees to pay to Assignor on the Assignment Date, an amount pursuant to their separate agreement representing the aggregate principal amount outstanding of the [Revolving Credit] [Term] Loans owing to Assignor under the Loan Agreement and the other Loan Documents with respect to the Assigned Interests.

 

6.           Payments by Assignor.  Assignor agrees to pay the Agent on the Assignment Date the registration fee required by §18.2 of the Loan Agreement.

 

7.           Effectiveness.

 

(a)           The effective date for this Agreement shall be _______________ (the “Assignment Date”).  Following the execution of this Agreement, each party hereto shall deliver its duly executed counterpart hereof to the Agent for acceptance and recording in the Register by the Agent.

 

(b)           Upon such acceptance and recording and from and after the Assignment Date, (i) Assignee shall be a party to the Loan Agreement and, to the extent of the Assigned Interests, have the rights and obligations of a Bank thereunder, and (ii) Assignor shall, with respect to the Assigned Interests, relinquish its rights and be released from its obligations under the Loan Agreement.

 

(c)           Upon such acceptance and recording and from and after the Assignment Date, the Agent shall make all payments in respect of the rights and interests assigned hereby accruing after the Assignment Date (including payments of principal, interest, fees and other amounts) to Assignee.

 

(d)           All outstanding LIBOR Rate Loans shall continue in effect for the remainder of their applicable Interest Periods and Assignee shall accept the currently effective interest rates on its Assigned Interest of each LIBOR Rate Loan.

 

8.           Notices.  Assignee specifies as its address for notices and its Lending Office for all assigned Loans, the offices set forth below:

 

  

J - 3

  

 

	
Notice Address:

	  	
_____________________

	  	  	
_____________________

	  	  	
_____________________

	  	  	
_____________________

	  	  	
Attn:_________________

	  	  	
Facsimile: ____________

	 	 	 
	
Domestic Lending Office:

	  	
Same as above

	 	 	 
	
LIBOR Lending Office:

	  	
Same as above

 

 

9.           Payment Instructions.  All payments to Assignee under the Loan Agreement shall be made as provided in the Loan Agreement in accordance with the following instructions:

 

	  	  	
_____________________

	  	  	
_____________________

	  	  	
_____________________

	  	  	
_____________________

	  	  	
_____________________

	  	  	
_____________________

 

10.         Governing Law.  THIS AGREEMENT IS INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT FOR ALL PURPOSES AND TO BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF MICHIGAN (WITHOUT REFERENCE TO CONFLICT OF LAWS).

 

11.         Counterparts.  This Agreement may be executed in any number of counterparts which shall together constitute but one and the same agreement.

 

12.         Amendments.  This Agreement may not be amended, modified or terminated except by an agreement in writing signed by Assignor and Assignee, and consented to by Agent.

 

13.         Successors.  This Agreement shall inure to the benefit of the parties hereto and their respective successors and assigns as permitted by the terms of Loan Agreement.

 

[signatures on following page]

 

  

J - 4

  

 

IN WITNESS WHEREOF, intending to be legally bound, each of the undersigned has caused this Agreement to be executed on its behalf by its officers thereunto duly authorized, as of the date first above written.

 

	  	 	
ASSIGNEE:

	  	 	  	 
	 	 	 	 
	 	 	 	 
	  	 	By:	 
	  	 	Title:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	  	 	
ASSIGNOR:

	 	 	 	 
	 	 	 	 
	  	 	  	 
	  	 	By:	 
	  	 	Title:	 
	
RECEIPT ACKNOWLEDGED AND

	 	  	 
	
ASSIGNMENT CONSENTED TO BY:

	 	  	 
	 	 	 	 
	
KEYBANK NATIONAL ASSOCIATION,

	 	  	 
	
as Agent

	 	  	 
	 	 	 	 	 
	
By:

	  	 	  	 
	
Title:

	  	 	  	 

 

 

	
ASSIGNMENT APPROVED BY:

	 
	 	 	 
	  	  	 
	
RAMCO-GERSHENSON PROPERTIES, L.P., 

a Delaware limited partnership

	 
	 	 	 
	
By:

	
Ramco-Gershenson Properties Trust, a 

Maryland real estate investment trust, its 

General Partner

	 
	 	 	 	 
	  	
By:

	  	 
	  	
Name:

	  	 
	  	
Title:

	  	 

  

J - 5

  

 

SCHEDULE 1.1

 

BANKS AND COMMITMENTS

 

REVOLVING CREDIT LOAN

 

	  	
 

Revolving Credit 

Commitment

 

	
Revolving Credit 

Commitment Percentage

	
KeyBank National Association

1200 Abernathy Road, N.E., Suite 1550

Atlanta, Georgia  30328

Attention:  Nathan Weyer

LIBOR Lending Office

Same as above

 

	
$28,384,615.39

	
11.826923079166700%

	
Bank of America, N.A.

135 S. LaSalle Street

IL4-135-06-11

Chicago, Illinois  60603

Attention:  Cheryl Sneor

 

LIBOR Lending Office

Same as above

 

	
$28,384,615.38

	
11.826923075000000%

	
Deutsche Bank Trust Company Americas

60 Wall Street

MS NYC 60-1104

New York, NY  10005

Attention:  Patrick Allen

 

LIBOR Lending Office

Same as above

 

	
$35,000,000.00

	
14.583333333333300%

	
JPMorgan Chase Bank, N.A.

10 South Dearborn, 19th Floor

Chicago, Illinois  60603

Attention:  Elizabeth Johnson

 

LIBOR Lending Office

Same as above

 

	
$28,384,615.38

	
11.826923075000000%

 

  

SCHEDULE 1.1 - PAGE 1

  

 

	  	
Revolving Credit 

Commitment

	
 

Revolving Credit 

Commitment Percentage

 

	
RBS Citizens, N.A. d/b/a Charter One

1215 Superior Avenue, OHS675

Cleveland, Ohio  44114

Attention:  Samuel Bluso

 

LIBOR Lending Office

Same as above

 

	
$25,230,769.23

	
10.512820512500000%

	
PNC Bank, National Association

755 West Big Beaver, Suite 2400

Mail Stop R1- YB94-24-1

Troy, Michigan  48084

Attention:  Dave Drouillard

 

LIBOR Lending Office

Same as above

 

	
$25,230,769.23

	
10.512820512500000%

	
Capital One, N.A.

1680 Capital One Drive, 10th Floor

McLean, Virginia  22102

Attention:  Frederick H. Denecke

 

LIBOR Lending Office

Same as above

 

	
$22,076,923.08

	
9.198717950000000%

	
The Huntington National Bank

200 Public Square

Mail Code CM17

Cleveland, Ohio  44114

Attention:  Michael Kauffman

 

LIBOR Lending Office

Same as above

 

	
$18,923,076.92

	
7.884615383333330%

	
Comerica Bank

3551 Hamlin

Auburn Hills, Michigan  48326

Attention:  Michael Shea

 

LIBOR Lending Office

Same as above

 

	
$15,769,230.77

	
6.570512820833330%

 

  

SCHEDULE 1.1 - PAGE 2

  

 

	  	
 

Revolving Credit 

Commitment

 

	
Revolving Credit 

Commitment Percentage

	
Branch Banking and Trust Company

200 W. Second Street, 16th Floor

Winston Salem, NC  27101

Attention:  Ahaz Armstrong

 

LIBOR Lending Office

Same as above

 

	
$12,615,384.62

	
5.256410258333330%

	
Total

 

	
$240,000,000.00

	
100.00%*

* Percentages may not add up to 100% due to rounding.

 

  

SCHEDULE 1.1 - PAGE 3

  

 

TERM LOAN

 

	  	
 

Term Loan

Commitment

 

	
Term Loan

Commitment

Percentage

	
KeyBank National Association

1200 Abernathy Road, N.E., Suite 1550

Atlanta, Georgia  30328

Attention:  Nathan Weyer

 

LIBOR Lending Office

Same as above

 

	
$16,615,384.61

	
13.846153841666700%

	
Bank of America, N.A.

135 S. LaSalle Street

IL4-135-06-11

Chicago, Illinois  60603

Attention:  Cheryl Sneor

 

LIBOR Lending Office

Same as above

 

	
$16,615,384.62

	
13.846153850000000%

	
JPMorgan Chase Bank, N.A.

10 South Dearborn, 19th Floor

Chicago, Illinois  60603

Attention:  Elizabeth Johnson

 

LIBOR Lending Office

Same as above

 

	
$16,615,384.62

	
13.846153850000000%

	
RBS Citizens, N.A. d/b/a Charter One

1215 Superior Avenue, OHS675

Cleveland, Ohio  44114

Attention:  Samuel Bluso

 

LIBOR Lending Office

Same as above

 

	
$14,769,230.77

	
12.307692308333300%

	
PNC Bank, National Association

755 West Big Beaver, Suite 2400

Mail Stop R1-YB94-24-1

Troy, Michigan  48084

Attention:  Dave Drouillard

 

LIBOR Lending Office

Same as above

 

	
$14,769,230.77

	
12.307692308333300%

 

  

SCHEDULE 1.1 - PAGE 4

  

 

	 	  

Term Loan

Commitment

 

	
Term Loan

Commitment

Percentage

	
Capital One, N.A.

1680 Capital One Drive, 10th Floor

McLean, Virginia  22102

Attention:  Frederick H. Denecke

 

LIBOR Lending Office

Same as above

 

	
$12,923,076.92

	
10.769230766666700%

	
The Huntington National Bank

200 Public Square

Mail Code CM17

Cleveland, Ohio  44114

Attention:  Michael Kauffman

 

LIBOR Lending Office

Same as above

 

	
$11,076,923.08

	
9.230769233333330%

	
Comerica Bank

3551 Hamlin

Auburn Hills, Michigan  48326

Attention:  Michael Shea

 

LIBOR Lending Office

Same as above

 

	
$9,230,769.23

	
7.692307691666670%

	
Branch Banking and Trust Company

200 W. Second Street, 16th Floor

Winston Salem, NC  27101

Attention:  Ahaz Armstrong

 

LIBOR Lending Office

Same as above

 

	
$7,384,615.38

	
6.153846150000000%

	
Total

 

	
$120,000,000.00

	
100.00%†

 

 

 

† Percentages may not add up to 100% due to rounding.

 

  

SCHEDULE 1.1 - PAGE 5

  

 

TOTAL COMMITMENTS

 

	  	
 

Commitments

	
Commitment

Percentage

	
KeyBank National Association

	
$45,000,000.00

	 	
12.500000000000000%

	
Bank of America, N.A.

	
$45,000,000.00

	 	
12.500000000000000%

	
JPMorgan Chase Bank, N.A.

	
$45,000,000.00

	 	
12.500000000000000%

	
RBS Citizens, N.A. d/b/a Charter One

	
$40,000,000.00

	 	
11.111111111111100%

	
PNC Bank, National Association

	
$40,000,000.00

	 	
11.111111111111100%

	
Deutsche Bank Trust Company Americas

	
$35,000,000.00

	 	
9.722222222222220%

	
Capital One, N.A.

	
$35,000,000.00

	 	
9.722222222222220%

	
The Huntington National Bank

	
$30,000,000.00

	 	
8.333333333333330%

	
Comerica Bank

	
$25,000,000.00

	 	
6.944444444444440%

	
Branch Banking and Trust Company

	
$20,000,000.00

	 	
5.555555555555560%

	
Total

	
$360,000,000.00

	 	
100.00%‡

 

‡ Percentages may not add up to 100% due to rounding.

 

  

SCHEDULE 1.1 - PAGE 6

  

 

SCHEDULE 2.9

 

EXISTING LETTERS OF CREDIT

 

 

The following Letters of Credit issued by KeyBank National Association:

 

	
LC#

	
Amount

	
Expiration Date

	 	 	 
	
S321802000A

	
$        9,905.50

	
August 20, 2012

	
S321933000A

	
$1,171,294.00 

	
November 14, 2012

	  	  	  

 

  

SCHEDULE 2.9 - PAGE 1

  

 

SCHEDULE 6.5

MARKETED PROPERTIES

	
1.

	
Southfield Plaza

 

	
2.

	
Edgewood

 

	
3.

	
WalMart at Roseville (currently under contract)

 

  

SCHEDULE 6.5 - PAGE 1

  

SCHEDULE 6.6

TRADEMARKS; TRADENAMES

 

None.

 

 

  

SCHEDULE 6.6 - PAGE 1

  

 

SCHEDULE 6.7

 

LITIGATION

 

1.           Matters covered by insurance policies, except for applicable deductibles.

 

2.           Landlord/Tenant claims in the ordinary course of business.

 

3.           Ramco Hartland LLC, Ramco RM Hartland SC LLC, and Ramco RM Hartland Disposition LLC (“Ramco”) were the plaintiffs/counter-defendants in Case No. 08-093556-CK, pending in Oakland County Circuit Court, State of Michigan.  Landmark/Mansour Development LLC is a defendant and Hani Mansour is a defendant/counter-plaintiff in the case.  The parties had entered an agreement to develop certain property in Hartland Township together through LLCs they agreed to form.  Defendants made demand for a capital account in one of the LLCs and refused to execute the proposed operating agreements unless they were given a capital account.  Ramco has asserted that the Defendants were not entitled to a capital account under the terms of their agreements.  When Defendants failed to execute the operating agreements, Ramco sued them in August 2008 on theories of breach of contract, promissory estoppel and declaratory judgment.  Hani Mansour brought a counterclaim against Ramco for breach of contract, declaratory judgment, and fraud/misrepresentation, demanding $1 million plus other unspecified damages.  Each party moved for summary disposition; the court granted all motions, and all sides have now appealed.  The appeal has been determined.  The appellate court let the lower court decision stand.  A motion for reconsideration was denied.  The Supreme Court has denied the application for leave to appeal of both parties, so the lower court's and appellate court's decision stand.

 

  

SCHEDULE 6.7 - PAGE 1

  

 

SCHEDULE 6.15

 

AFFILIATE TRANSACTIONS

 

Non-Qualified Stock Option Agreements dated May 10, 1996, September 16, 1998 and March 8, 2000, along with related Election and Option Deferral Agreements and Notices of Option Exercises between Ramco-Gershenson Properties Trust (the “Trust”) and each of the following:

 

Dennis Gershenson

 

Michael A. Ward

 

Noncompetition Agreements dated May 10, 1996, between the Trust and Dennis Gershenson

 

Registration Rights Agreements dated May 10, 1996, among Trust and the Ramco Principals

 

Tax Agreement dated May 10, 1996, between Atlantic and RPS

 

Exchange Rights Agreement dated May 10, 1996, between Operating Partnership and the Ramco Principals

 

Assignment, Assumption and Indemnification Agreement relating to Atlantic dated May 10, 1996, between RPS and Atlantic

 

Management Services and Reimbursement Agreement dated May 10, 1996 between Ramco-Gershenson, Inc. and Ramco-Gershenson Properties, L.P.

 

Amended and Restated Agreement of Limited Partnership of Ramco-Gershenson Properties, L.P. (Operating Partnership”) as amended which lists the following persons as holding a partnership interest directly or by entities controlled by them:

 

Dennis Gershenson

 

Michael A. Ward

 

The following officers or trustees of Ramco-Gershenson Properties Trust are general partners, limited partners, or shareholders or members in various entities which are provided management and/or accounting services by Ramco-Gershenson, Inc.:

 

Joel Pashcow

 

William Gershenson, the son of Dennis Gershenson, is employed by the Trust.

 

Ramco-Gershenson Properties Trust purchased Directors’ and Officers’ liability insurance from Aon Risk Services, Inc. of New York, an insurance brokerage firm (“Aon”).  In connection with such insurance purchase, Aon received brokerage commission.  Mr. Robert A. Meister, who is a member of the Trust’s Board of Trustees, is the former Vice Chairman of Aon Risk Services & Co., an affiliate of Aon.  In addition, Mr. Alan Mann, who is Senior Vice President of Aon, is the son-in-law of Mr. Arthur H. Goldberg, who is also a member of the Trust’s Board of Trustees.

 

Joel Pashcow, trustee, has an interest in Ramco/Shenandoah LLC, a joint venture of Ramco-Gershenson Properties, L.P.

 

  

SCHEDULE 6.15 - PAGE 1

  

 

Change in Control Policy dated July 10, 2007 between Trust and Officers of the Trust, as amended on March 1, 2010

 

Employment Agreement dated August 1, 2007 between Trust and Dennis Gershenson

 

2012 Executive Incentive Plan

 

2012 Omnibus Long-Term Incentive Plan

 

Employment Agreement dated February 16, 2010 between Trust and Gregory R. Andrews

 

Officers of the Trust have received grants of stock options and of restricted shares.  Non-employee Trustees of the Trust receive Cash and restricted shares annually with a value of approximately $80,000 per Trustee.  The Board Chair and Committee Chairs receive additional payments.

 

  

SCHEDULE 6.15 - PAGE 2

  

 

SCHEDULE 6.18

 

ENVIRONMENTAL MATTERS

 

[SEE ATTACHED]

 

 

  

SCHEDULE 6.18 - PAGE 1

  

SCHEDULE 6.19

 

SUBSIDIARIES AND UNCONSOLIDATED AFFILIATES OF THE BORROWER

 

[SEE ATTACHED]

 

 

  

SCHEDULE 6.19 - PAGE 1

  

SCHEDULE 6.21

 

MANAGEMENT AGREEMENTS; OPTIONS

 

	
1.

	
Management Services and Reimbursement Agreement dated May 10, 1996 between Ramco-Gershenson, Inc. and Ramco-Gershenson Properties, L.P.

 

2.            The following options / rights of first refusal:

 

A.           Wal-Mart at Roseville Towne Center has a right of first refusal.

 

B.           Wendy's at The Auburn Mile has an option to acquire its parcel as of 1/1/11.

 

	
  

	
C.

	
Ruby Tuesday at Taylors Square has an option to purchase its parcel at the expiration of the 10th Lease Year.

 

	
  

	
D.

	
Target has option to purchase at Gaines Marketplace during month of October, 2014.

 

	
  

	
E.

	
Meijer has an option to purchase at Gaines Marketplace in the 12 months preceding June 30, 2014.

 

  

SCHEDULE 6.21 - PAGE 1

  

 

SCHEDULE 6.23

 

EXISTING DEFAULTS

 

None.

 

 

  

SCHEDULE 6.23 - PAGE 1

  

 

SCHEDULE 6.29

 

PROPERTY OF GUARANTOR

 

The assets of the Guarantor, Ramco-Gershenson Properties Trust are comprised solely of the following:

 

Attachable Assets

 

Cash and Short-term Investments in an amount in excess of $500,000.00.

 

Accounts receivable, including Distributions received from Ramco-Gershenson Properties, L.P. that have not been distributed to the shareholders of the Trust as permitted by this Agreement.

 

Rights and claims (including amounts paid under) the Tax Indemnity Agreement.

 

Investments in Ramco-Gershenson Properties, L.P.

 

All Net Offering Proceeds that have not been contributed to Ramco-Gershenson Properties, L.P.

 

Other Permitted Assets

 

Prepaid expenses, including capitalized legal fees

 

Cash and Short-term Investments in an amount not to exceed $500,000.00.

 

Investments in the following subsidiaries:

 

Ramco SPC, Inc. (Related to Ramco Properties Associates Limited Partnership)

 

Ramco SPC II, Inc. (Related to Ramco Virginia Properties LLC (Aquia))

 

  

SCHEDULE 6.29 - PAGE 1

  

 

SCHEDULE 6.31

 

INITIAL UNENCUMBERED BORROWING BASE PROPERTIES

 

 

  

SCHEDULE 6.31 - PAGE 1

  

 

SCHEDULE 8.9

 

EXISTING UNDEVELOPED LAND PROJECTS

 

 

	
  

	
4.

	
Hartland Towne Square, Hartland Township, Michigan

 

	
  

	
5.

	
Stonegate, Kingsport, Tennessee

 

	 	
3. 

	
The Town Center at Aquia, Stafford, Virginia

 

	 	
4. 

	
Vacant land adjacent to Holcomb Center, Roswell, Georgia

 

  

SCHEDULE 8.9 - PAGE 1

  

TABLE OF CONTENTS

	  	  	  	
Page

	 	 	 
	
§1.

	
DEFINITIONS AND RULES OF INTERPRETATION

	
1

	  	
§1.1.

	
Definitions

	
1

	  	
§1.2.

	
Rules of Interpretation

	
25

	
§2.

	
THE CREDIT FACILITY

	
26

	  	
§2.1.

	
Commitment to Lend Revolving Credit Loans

	
26

	  	
§2.2.

	
Commitment to Lend Term Loan

	
27

	  	
§2.3.

	
Unused Fee; Facility Fee

	
27

	  	
§2.4.

	
Interest on Loans

	
28

	  	
§2.5.

	
Requests for Revolving Credit Loans

	
29

	  	
§2.6.

	
Funds for Loans

	
29

	  	
§2.7.

	
Optional Reduction of Revolving Credit Commitments

	
30

	  	
§2.8.

	
Increase of Revolving Credit Commitment and Term Loan Commitment

	
31

	  	
§2.9.

	
Letters of Credit

	
33

	  	
§2.10.

	
Swing Line Loans

	
38

	  	
§2.11.

	
Evidence of Debt

	
41

	  	
§2.12.

	
Defaulting Banks

	
42

	
§3.

	
REPAYMENT OF THE LOANS

	
46

	  	
§3.1.

	
Stated Maturity

	
46

	  	
§3.2.

	
Mandatory Prepayments

	
46

	  	
§3.3.

	
Optional Prepayments

	
46

	  	
§3.4.

	
Partial Prepayments

	
46

	  	
§3.5.

	
Effect of Prepayments

	
47

	  	
§4.

	
CERTAIN GENERAL PROVISIONS

	
47

	  	
§4.1.

	
Conversion Options

	
47

	  	
§4.2.

	
Commitment and Syndication Fee

	
48

	  	
§4.3.

	
Agent’s Fee

	
48

	  	
§4.4.

	
Funds for Payments

	
48

	  	
§4.5.

	
Computations

	
49

	  	
§4.6.

	
Suspension of LIBOR Rate Loans

	
49

	  	
§4.7.

	
Illegality

	
50

	  	
§4.8.

	
Additional Interest

	
50

  

-i-

  

 

TABLE OF CONTENTS

(continued)

	  	  	  	
Page

	 	 	 	 
	  	
§4.9.

	
Additional Costs, Etc

	
50

	  	
§4.10.

	
Capital Adequacy

	
51

	  	
§4.11.

	
Indemnity of Borrower

	
52

	  	
§4.12.

	
Interest on Overdue Amounts; Late Charge

	
52

	  	
§4.13.

	
Certificate

	
52

	  	
§4.14.

	
Limitation on Interest

	
52

	  	
§4.15.

	
Extension of Revolving Credit Maturity Date

	
53

	
§5.

	
UNSECURED OBLIGATIONS; GUARANTY

	
54

	  	
§5.1.

	
Unsecured Obligations

	
54

	  	
§5.2.

	
New Guarantors

	
54

	
§6.

	
REPRESENTATIONS AND WARRANTIES OF THE TRUST AND THE BORROWER

	
55

	  	
§6.1.

	
Corporate Authority, Etc

	
55

	  	
§6.2.

	
Governmental Approvals

	
56

	  	
§6.3.

	
Title to Properties; Lease

	
56

	  	
§6.4.

	
Financial Statements

	
56

	  	
§6.5.

	
No Material Changes

	
57

	  	
§6.6.

	
Franchises, Patents, Copyrights, Etc

	
57

	  	
§6.7.

	
Litigation

	
57

	  	
§6.8.

	
No Materially Adverse Contracts, Etc

	
57

	  	
§6.9.

	
Compliance with Other Instruments, Laws, Etc

	
57

	  	
§6.10.

	
Tax Status

	
58

	  	
§6.11.

	
No Event of Default

	
58

	  	
§6.12.

	
Investment Company Acts

	
58

	  	
§6.13.

	
Absence of UCC Financing Statements, Etc

	
58

	  	
§6.14.

	
[Intentionally Omitted.]

	
58

	  	
§6.15.

	
Certain Transactions

	
58

	  	
§6.16.

	
Employee Benefit Plans

	
58

	  	
§6.17.

	
Regulations T, U and X

	
59

	  	
§6.18.

	
Environmental Compliance

	
59

	  	
§6.19.

	
Subsidiaries and Unconsolidated Affiliates

	
61

  

-ii-

  

 

TABLE OF CONTENTS

(continued)

	  	  	  	
Page

	 	 	 	 
	  	
§6.20.

	
Loan Documents

	
61

	  	
§6.21.

	
Property

	
61

	  	
§6.22.

	
Brokers

	
61

	  	
§6.23.

	
Other Debt

	
61

	  	
§6.24.

	
Solvency

	
62

	  	
§6.25.

	
Contribution Agreement

	
62

	  	
§6.26.

	
No Fraudulent Intent

	
62

	  	
§6.27.

	
Transaction in Best Interests of Borrower; Consideration

	
62

	  	
§6.28.

	
Partners and the Trust

	
62

	  	
§6.29.

	
Tax Indemnity Agreement

	
62

	  	
§6.30.

	
Embargoed Persons

	
62

	  	
§6.31.

	
Unencumbered Borrowing Base Properties

	
63

	
§7.

	
AFFIRMATIVE COVENANTS OF THE TRUST AND THE BORROWER

	
63

	  	
§7.1.

	
Punctual Payment

	
63

	  	
§7.2.

	
Maintenance of Office

	
63

	  	
§7.3.

	
Records and Accounts

	
63

	  	
§7.4.

	
Financial Statements, Certificates and Information

	
63

	  	
§7.5.

	
Notices

	
66

	  	
§7.6.

	
Existence; Maintenance of Properties

	
67

	  	
§7.7.

	
Insurance

	
68

	  	
§7.8.

	
Taxes

	
68

	  	
§7.9.

	
Inspection of Properties and Books

	
68

	  	
§7.10.

	
Compliance with Laws, Contracts, Licenses, and Permits

	
69

	  	
§7.11.

	
Use of Proceeds

	
69

	  	
§7.12.

	
Further Assurances

	
69

	  	
§7.13.

	
Compliance

	
69

	  	
§7.14.

	
Limiting Agreements

	
69

	  	
§7.15.

	
Ownership of Real Estate

	
70

	  	
§7.16.

	
More Restrictive Agreements

	
70

	  	
§7.17.

	
Trust Restrictions

	
70

	  	
§7.18.

	
Interest Rate Contract(s)

	
71

  

-iii-

  

 

TABLE OF CONTENTS

(continued)

	  	  	  	
Page

	 	 	 	 
	  	
§7.19.

	
Unencumbered Borrowing Base Properties

	
71

	
§8.

	
CERTAIN NEGATIVE COVENANTS OF THE TRUST AND THE BORROWER

	
75

	  	
§8.1.

	
Restrictions on Indebtedness

	
75

	  	
§8.2.

	
Restrictions on Liens Etc

	
76

	  	
§8.3.

	
Restrictions on Investments

	
77

	  	
§8.4.

	
Merger, Consolidation

	
79

	  	
§8.5.

	
Conduct of Business

	
79

	  	
§8.6.

	
Compliance with Environmental Laws

	
80

	  	
§8.7.

	
Distributions

	
81

	  	
§8.8.

	
Asset Sales

	
82

	  	
§8.9.

	
Development Activity

	
82

	  	
§8.10.

	
[Intentionally Omitted.]

	
83

	  	
§8.11.

	
Trust Preferred Equity and Subordinated Debt

	
83

	
§9.

	
FINANCIAL COVENANTS OF THE TRUST AND THE BORROWER

	
83

	  	
§9.1.

	
Liabilities to Assets Ratio

	
83

	  	
§9.2.

	
Fixed Charges Coverage

	
83

	  	
§9.3.

	
Consolidated Tangible Net Worth

	
84

	  	
§9.4.

	
Secured Indebtedness

	
84

	  	
§9.5.

	
Borrowing Base Test

	
84

	
§10.

	
CLOSING CONDITIONS

	
84

	  	
§10.1.

	
Loan Documents

	
84

	  	
§10.2.

	
Certified Copies of Organizational Documents

	
84

	  	
§10.3.

	
Resolutions

	
84

	  	
§10.4.

	
Incumbency Certificate; Authorized Signers

	
85

	  	
§10.5.

	
Opinion of Counsel

	
85

	  	
§10.6.

	
Payment of Fees

	
85

	  	
§10.7.

	
Performance; No Default

	
85

	  	
§10.8.

	
Representations and Warranties

	
85

	  	
§10.9.

	
Proceedings and Documents

	
85

	  	
§10.10.

	
Stockholder and Partner Consents

	
85

  

-iv-

  

 

TABLE OF CONTENTS

(continued)

	  	  	  	
Page

	  	  	  	  
	  	
§10.11.

	
Compliance Certificate

	
86

	  	
§10.12.

	
Contribution Agreement

	
86

	  	
§10.13.

	
No Legal Impediment

	
86

	  	
§10.14.

	
Governmental Regulation

	
86

	  	
§10.15.

	
Other

	
86

	
§11.

	
CONDITIONS TO ALL BORROWINGS

	
86

	  	
§11.1.

	
Prior Conditions Satisfied

	
86

	  	
§11.2.

	
Representations True; No Default

	
86

	  	
§11.3.

	
Borrowing Documents

	
87

	
§12.

	
EVENTS OF DEFAULT; ACCELERATION; ETC

	
87

	  	
§12.1.

	
Events of Default and Acceleration

	
87

	  	
§12.2.

	
Limitation of Cure Periods

	
90

	  	
§12.3.

	
Termination of Commitments

	
91

	  	
§12.4.

	
Remedies

	
91

	  	
§12.5.

	
Distribution of Proceeds

	
91

	  	
§12.6.

	
Collateral Account

	
92

	
§13.

	
SETOFF

	
93

	
§14.

	
THE AGENT

	
94

	  	
§14.1.

	
Authorization

	
94

	  	
§14.2.

	
Employees and Agents

	
94

	  	
§14.3.

	
No Liability

	
94

	  	
§14.4.

	
No Representations

	
95

	  	
§14.5.

	
Payments

	
95

	  	
§14.6.

	
Holders of Notes

	
96

	  	
§14.7.

	
Indemnity

	
96

	  	
§14.8.

	
Agent as Bank

	
96

	  	
§14.9.

	
Resignation

	
96

	  	
§14.10.

	
Duties in the Case of Enforcement

	
97

	  	
§14.11.

	
Bankruptcy

	
97

	  	
§14.12.

	
Approvals

	
97

	  	
§14.13.

	
Borrower not Beneficiary

	
98

  

-v-

  

 

TABLE OF CONTENTS

(continued)

	  	  	  	
Page

	  	  	  	  
	
§15.

	
EXPENSES

	
98

	
§16.

	
INDEMNIFICATION

	
99

	
§17.

	
SURVIVAL OF COVENANTS, ETC

	
100

	
§18.

	
ASSIGNMENT AND PARTICIPATION

	
100

	  	
§18.1.

	
Conditions to Assignment by Banks

	
100

	  	
§18.2.

	
Register

	
101

	  	
§18.3.

	
New Notes

	
101

	  	
§18.4.

	
Participations

	
102

	  	
§18.5.

	
Pledge by Bank

	
102

	  	
§18.6.

	
No Assignment by Borrower or the Trust

	
102

	  	
§18.7.

	
Disclosure

	
102

	  	
§18.8.

	
Amendments to Loan Documents

	
102

	  	
§18.9.

	
Mandatory Assignment

	
103

	  	
§18.10.

	
Titled Agents

	
103

	
§19.

	
NOTICES

	
103

	
§20.

	
RELATIONSHIP

	
105

	
§21.

	
GOVERNING LAW: CONSENT TO JURISDICTION AND SERVICE

	
105

	
§22.

	
HEADINGS

	
105

	
§23.

	
COUNTERPARTS

	
105

	
§24.

	
ENTIRE AGREEMENT, ETC

	
106

	
§25.

	
WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS

	
106

	
§26.

	
DEALINGS WITH THE BORROWER OR THE GUARANTORS

	
106

	
§27.

	
CONSENTS, AMENDMENTS, WAIVERS, ETC

	
107

	
§28.

	
SEVERABILITY

	
107

	
§29.

	
TIME OF THE ESSENCE

	
108

	
§30.

	
NO UNWRITTEN AGREEMENTS

	
108

	
§31.

	
REPLACEMENT OF NOTES

	
108

	
§32.

	
TRUST EXCULPATION

	
108

	
§33.

	
PATRIOT ACT

	
109

  

-vi-

  

 

EXHIBITS AND SCHEDULES

 

	
EXHIBIT A

	
FORM OF REVOLVING CREDIT NOTE

	
EXHIBIT B

	
FORM OF TERM LOAN NOTE

	
EXHIBIT C

	
FORM OF SWING LINE NOTE

	
EXHIBIT D

	
FORM OF JOINDER AGREEMENT

	
EXHIBIT E

	
FORM OF LOAN REQUEST

	
EXHIBIT F

	
FORM OF SWING LINE LOAN NOTICE

	
EXHIBIT G

	
LETTER OF CREDIT APPLICATION

	
EXHIBIT H

	
FORM OF REQUEST FOR EXTENSION OF LOANS

	
EXHIBIT I

	
FORM OF COMPLIANCE CERTIFICATE

	
EXHIBIT J

	
FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

	
SCHEDULE 1.1

	
BANKS AND COMMITMENTS

	
SCHEDULE 2.9

	
EXISTING LETTERS OF CREDIT

	
SCHEDULE 6.5

	
MARKETED PROPERTIES

	
SCHEDULE 6.6

	
TRADEMARKS; TRADENAMES

	
SCHEDULE 6.7

	
LITIGATION

	
SCHEDULE 6.15

	
AFFILIATE TRANSACTIONS

	
SCHEDULE 6.18

	
ENVIRONMENTAL MATTERS

	
SCHEDULE 6.19

	
SUBSIDIARIES OF THE BORROWER AND GUARANTOR

	
SCHEDULE 6.21

	
MANAGEMENT AGREEMENTS; OPTIONS

	
SCHEDULE 6.23

	
EXISTING DEFAULTS

	
SCHEDULE 6.29

	
PROPERTY OF GUARANTOR

	
SCHEDULE 6.31

	
INITIAL UNENCUMBERED BORROWING BASE PROPERTIES

	
SCHEDULE 8.9

	
EXISTING UNDEVELOPED LAND PROJECTS

 

 

-vii-

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