Document:

Loan No. 1005052

	  
	
EXECUTION COPY

	  
	 	 

 

TERM LOAN AGREEMENT

Dated as of January 13, 2012

by and among

 

LEXINGTON REALTY TRUST,

 

LEPERCQ CORPORATE INCOME FUND L.P.,

 

AND

 

LEPERCQ CORPORATE INCOME FUND II L.P.,

as Borrowers,

THE FINANCIAL INSTITUTIONS PARTY HERETO

AND THEIR ASSIGNEES UNDER SECTION 12.5.,

as Lenders,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent

  

 

WELLS FARGO SECURITIES, LLC,

as Sole Lead Arranger

and

Sole Bookrunner,

KEYBANK NATIONAL ASSOCIATION,

as Syndication Agent,

and

REGIONS BANK,

as Documentation Agent

	
 

 

  

  

  

 

TABLE OF CONTENTS

 

	
ARTICLE I. - DEFINITIONS

	
1

	
Section 1.1.

	
Definitions.

	
1

	
Section 1.2.

	
General; References to Times.

	
25

	
Section 1.3.

	
Financial Attributes of Non-Wholly Owned Subsidiaries.

	
25

	
ARTICLE II. - CREDIT FACILITY

	
26

	
Section 2.1.

	
Loans.

	
26

	
Section 2.2.

	
[Reserved].

	
27

	
Section 2.3.

	
[Reserved].

	
27

	
Section 2.4.

	
Rates and Payment of Interest on Loans.

	
27

	
Section 2.5.

	
Number of Interest Periods.

	
28

	
Section 2.6.

	
Repayment of Loans.

	
28

	
Section 2.7.

	
Prepayments.

	
28

	
Section 2.8.

	
Continuation.

	
29

	
Section 2.9.

	
Conversion.

	
30

	
Section 2.10.

	
Notes.

	
30

	
Section 2.11.

	
[Reserved].

	
31

	
Section 2.12.

	
[Reserved].

	
31

	
Section 2.13.

	
[Reserved].

	
31

	
Section 2.14.

	
Amount Limitations.

	
31

	
Section 2.15.

	
Additional Commitments and Loans.

	
31

	
Section 2.16.

	
Joint and Several Liability.

	
32

	
Section 2.17.

	
Borrower Representative.

	
33

	
Section 2.18.

	
Security Interests in Collateral.

	
34

	
Section 2.19.

	
Funds Transfer Disbursements.

	
34

	
ARTICLE III. - PAYMENTS, FEES AND OTHER GENERAL PROVISIONS

	
35

	
Section 3.1.

	
Payments.

	
35

	
Section 3.2.

	
Pro Rata Treatment.

	
36

	
Section 3.3.

	
Sharing of Payments, Etc.

	
36

	
Section 3.4.

	
Several Obligations.

	
37

	
Section 3.5.

	
[Reserved].

	
37

	
Section 3.6.

	
Fees.

	
37

	
Section 3.7.

	
Computations.

	
37

	
Section 3.8.

	
Usury.

	
37

	
Section 3.9.

	
Agreement Regarding Interest and Charges.

	
38

	
Section 3.10.

	
Statements of Account.

	
38

	
Section 3.11.

	
Defaulting Lenders.

	
38

	
Section 3.12.

	
Taxes.

	
40

	
ARTICLE IV. - YIELD PROTECTION, ETC.

	
42

	
Section 4.1.

	
Additional Costs; Capital Adequacy.

	
42

	
Section 4.2.

	
Suspension of LIBOR Loans.

	
42

	
Section 4.3.

	
Illegality.

	
43

	
Section 4.4.

	
Compensation.

	
43

	
Section 4.5.

	
Affected Lenders.

	
44

	
Section 4.6.

	
Treatment of Affected Loans.

	
44

	
Section 4.7.

	
Change of Lending Office.

	
45

 

  

- i -

  

 

	
Section 4.8.

	
Assumptions Concerning Funding of LIBOR Loans.

	
45

	
ARTICLE V. - CONDITIONS PRECEDENT

	
45

	
Section 5.1.

	
Initial Conditions Precedent.

	
45

	
Section 5.2.

	
Conditions Precedent to All Loans.

	
48

	
ARTICLE VI. - REPRESENTATIONS AND WARRANTIES

	
48

	
Section 6.1.

	
Representations and Warranties.

	
48

	
Section 6.2.

	
Survival of Representations and Warranties, Etc.

	
55

	
ARTICLE VII. - AFFIRMATIVE COVENANTS

	
56

	
Section 7.1.

	
Preservation of Existence and Similar Matters.

	
56

	
Section 7.2.

	
Compliance with Applicable Law and Material Contracts.

	
56

	
Section 7.3.

	
Maintenance of Property.

	
56

	
Section 7.4.

	
Conduct of Business.

	
56

	
Section 7.5.

	
Insurance.

	
57

	
Section 7.6.

	
Payment of Taxes and Claims.

	
57

	
Section 7.7.

	
Visits and Inspections.

	
57

	
Section 7.8.

	
Use of Proceeds.

	
57

	
Section 7.9.

	
Environmental Matters.

	
58

	
Section 7.10.

	
Books and Records.

	
58

	
Section 7.11.

	
Further Assurances.

	
58

	
Section 7.12.

	
Release of a Guarantor.

	
58

	
Section 7.13.

	
REIT Status.

	
59

	
Section 7.14.

	
Exchange Listing.

	
59

	
Section 7.15.

	
Addition of Borrowing Base Assets.

	
59

	
Section 7.16.

	
Removal of Borrowing Base Assets.

	
61

	
Section 7.17.

	
Failure of Certain Borrowing Base Assets Representations and Warranties.

	
62

	
Section 7.18.

	
Article 8 Securities.

	
62

	
ARTICLE VIII. - INFORMATION

	
62

	
Section 8.1.

	
Quarterly Financial Statements.

	
62

	
Section 8.2.

	
Year-End Statements.

	
63

	
Section 8.3.

	
Compliance Certificate.

	
63

	
Section 8.4.

	
Other Information.

	
63

	
Section 8.5.

	
Frequency of Calculations of Availability.

	
66

	
ARTICLE IX. - NEGATIVE COVENANTS

	
66

	
Section 9.1.

	
Financial Covenants.

	
66

	
Section 9.2.

	
Restricted Payments.

	
67

	
Section 9.3.

	
Indebtedness.

	
68

	
Section 9.4.

	
Certain Permitted Investments.

	
68

	
Section 9.5.

	
Investments Generally.

	
69

	
Section 9.6.

	
Liens; Negative Pledges; Other Matters.

	
69

	
Section 9.7.

	
Merger, Consolidation, Sales of Assets and Other Arrangements.

	
70

	
Section 9.8.

	
Fiscal Year.

	
71

	
Section 9.9.

	
Modifications to Material Contracts.

	
71

	
Section 9.10.

	
Modifications of Organizational Documents.

	
71

	
Section 9.11.

	
Transactions with Affiliates.

	
71

	
Section 9.12.

	
ERISA Exemptions.

	
72

 

  

- ii -

  

 

	
ARTICLE X. - DEFAULT

	
72

	
Section 10.1.

	
Events of Default.

	
72

	
Section 10.2.

	
Remedies Upon Event of Default.

	
76

	
Section 10.3.

	
Remedies Upon Default.

	
77

	
Section 10.4.

	
Allocation of Proceeds.

	
77

	
Section 10.5.

	
Performance by Agent.

	
77

	
Section 10.6.

	
Rights Cumulative.

	
78

	
Section 10.7.

	
Marshaling; Payments Set Aside.

	
78

	
ARTICLE XI. - THE AGENT

	
79

	
Section 11.1.

	
Authorization and Action.

	
79

	
Section 11.2.

	
Agent’s Reliance, Etc.

	
80

	
Section 11.3.

	
Notice of Defaults.

	
80

	
Section 11.4.

	
Wells Fargo as Lender.

	
81

	
Section 11.5.

	
Approvals of Lenders.

	
81

	
Section 11.6.

	
Lender Credit Decision, Etc.

	
82

	
Section 11.7.

	
Indemnification of Agent.

	
82

	
Section 11.8.

	
Successor Agent.

	
83

	
Section 11.9.

	
Titled Agents.

	
83

	
Section 11.10.

	
Collateral Matters.

	
84

	
ARTICLE XII. - MISCELLANEOUS

	
85

	
Section 12.1.

	
Notices.

	
85

	
Section 12.2.

	
Expenses.

	
86

	
Section 12.3.

	
Setoff.

	
87

	
Section 12.4.

	
Litigation; Jurisdiction; Other Matters; Waivers.

	
87

	
Section 12.5.

	
Successors and Assigns.

	
88

	
Section 12.6.

	
Amendments.

	
92

	
Section 12.7.

	
Nonliability of Agent and Lenders.

	
94

	
Section 12.8.

	
Confidentiality.

	
95

	
Section 12.9.

	
Indemnification.

	
96

	
Section 12.10.

	
Termination; Survival.

	
98

	
Section 12.11.

	
Severability of Provisions.

	
98

	
Section 12.12.

	
GOVERNING LAW.

	
98

	
Section 12.13.

	
Patriot Act.

	
98

	
Section 12.14.

	
Electronic Delivery of Certain Information.

	
99

	
Section 12.15.

	
Public/Private Information.

	
99

	
Section 12.16.

	
Counterparts.

	
100

	
Section 12.17.

	
Obligations with Respect to Loan Parties.

	
100

	
Section 12.18.

	
Independence of Covenants.

	
100

	
Section 12.19.

	
Limitation of Liability.

	
100

	
Section 12.20.

	
Entire Agreement.

	
100

	
Section 12.21.

	
Construction.

	
101

	
Section 12.22.

	
Time is of the Essence.

	
101

	
Section 12.23.

	
Headings.

	
101

	
Section 12.24.

	
Intercreditor Agreement.

	
101

 

  

- iii -

  

 

	
SCHEDULE I

	  	
Commitments

	
SCHEDULE 1.1.(A)

	  	
List of Loan Parties [Intentionally Omitted]

	
SCHEDULE 6.1.(b)

	  	
Ownership Structure [Intentionally Omitted]

	
SCHEDULE 6.1.(f)

	  	
Title to Properties; Liens [Intentionally Omitted]

	
SCHEDULE 6.1.(g)

	  	
Indebtedness and Guaranties [Intentionally Omitted]

	
SCHEDULE 6.1.(h)

	  	
Material Contracts [Intentionally Omitted]

	
SCHEDULE 6.1.(i)

	  	
Litigation [Intentionally Omitted]

	
SCHEDULE 7.15(e)

	
  

	
Designated Property [Intentionally Omitted]

 

	
EXHIBIT A

	  	
Form of Assignment and Assumption

	
EXHIBIT B

	  	
Form of Notice of Borrowing

	
EXHIBIT C

	  	
Form of Notice of Continuation

	
EXHIBIT D

	  	
Form of Notice of Conversion

	
EXHIBIT E

	  	
Form of Note

	
EXHIBIT F

	  	
Form of Opinion of Counsel

	
EXHIBIT G

	  	
Form of Compliance Certificate

	
EXHIBIT H

	  	
Form of Guaranty

	
EXHIBIT I

	  	
Form of Borrowing Base Certificate

	
EXHIBIT J

	  	
Representations and Warranties relating to Borrowing Base Assets

	
EXHIBIT K

	  	
Initial Borrowing Base Assets

	
EXHIBIT L

	  	
Form of Transfer Authorizer Designation Form

	
EXHIBIT M

	
  

	
Form of Pledge Agreement

 

  

- iv -

  

 

TERM LOAN AGREEMENT

 

THIS TERM LOAN AGREEMENT (this “Agreement”) dated as of January 13, 2012 by and among LEXINGTON REALTY TRUST, a real estate investment trust formed under the laws of the State of Maryland (the “Trust”), LEPERCQ CORPORATE INCOME FUND L.P., a limited partnership formed under the laws of the State of Delaware (“LCIF”), and LEPERCQ CORPORATE INCOME FUND II L.P., a limited partnership formed under the laws of the State of Delaware (“LCIFII”; collectively with the Trust and LCIF, the “Borrowers” and each a “Borrower”), each of the financial institutions initially a signatory hereto together with their successors and assignees under Section 12.5. (the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Agent”), with WELLS FARGO SECURITIES, LLC, as sole Lead Arranger and sole Bookrunner, KEYBANK NATIONAL ASSOCIATION, as Syndication Agent (the “Syndication Agent”), and REGIONS BANK, as Documentation Agent (the “Documentation Agent”).

 

WHEREAS, on the terms and conditions contained herein, the Lenders desire to make available to the Borrowers a senior secured term loan facility in the aggregate amount of $215,000,000.00, subject to increase as provided herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows:

 

ARTICLE I. - DEFINITIONS

 

Section 1.1.     Definitions.

 

In addition to terms defined elsewhere herein, the following terms shall have the following meanings for the purposes of this Agreement:

 

“2008 Term Loans” means the term loans dated March 18, 2008 provided by KeyBank National Association, as agent on behalf of certain lenders, to the Trust and certain Subsidiaries in the original aggregate principal amount of $70,000,000.00.

 

“Accession Agreement” means an Accession Agreement substantially in the form of Annex I to the Guaranty.

 

“Additional Costs” has the meaning given that term in Section 4.1.

 

“Additional Loans” has the meaning given that term in Section 2.15.

 

“Adjusted EBITDA” means, for any given period, (a) the EBITDA of the Trust and its Subsidiaries determined on a consolidated basis for such period, minus (b) Capital Reserves for such period.

 

“Administrative Questionnaire” means the Administrative Questionnaire completed by each Lender and delivered to the Agent in a form supplied by the Agent to the Lenders from time to time.

 

  

  

  

 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.  In no event shall the Agent or any Lender be deemed to be an Affiliate of any Borrower.

 

“Agent” means Wells Fargo, as contractual representative for the Lenders under the terms of this Agreement, and any of its successors.

 

“Agreement Date” means the date as of which this Agreement is dated.

 

“Applicable Law” means all applicable provisions of constitutions, statutes, laws, rules, regulations and orders of all governmental bodies and all orders and decrees of all courts, tribunals and arbitrators.

 

“Applicable Margin” means from time to time, (a) subject to clause (b) below, the percentage rate set forth in the immediately following table corresponding to the Leverage as set forth in the Compliance Certificate most recently delivered by the Trust pursuant to Section 8.3.  Any adjustment to the Applicable Margin shall be effective as of the first day of the calendar month immediately following the month during which the Trust delivers to the Agent the applicable Compliance Certificate pursuant to Section 8.3.  If the Trust fails to deliver a Compliance Certificate pursuant to Section 8.3., the Applicable Margin shall equal the percentages corresponding to Level 4 until the first day of the calendar month immediately following the month that the required Compliance Certificate is delivered.  Notwithstanding the foregoing, for the period from the Effective Date through but excluding the date on which the Agent first determines the Applicable Margin for Loans as provided above, the Applicable Margin shall be determined based on Level 2.

 

	
Level

	  	
Leverage

	  	
Applicable Margin

	
1

	  	
Less than 45%

	  	
2.00%

	
2

	  	
Greater than or equal to 45% but less than 50%

	  	
2.25%

	
3

	  	
Greater than or equal to 50% but less than 55%

	  	
2.45%

	
4

	
  

	
Greater than or equal to 55%

	
  

	
2.85%

(b)           If the Trust obtains an Investment Grade Rating from at least two Rating Agencies, the Applicable Margin shall thereafter at all times be determined based on the applicable rate per annum set forth in the below table corresponding to the level (each a “Pricing Level”) into which the Trust’s Debt Rating then falls, notwithstanding any failure of the Trust to maintain an Investment Grade Rating or any failure of Trust to maintain a Debt Rating.

	
Pricing

Level

	  	
Debt Rating

	  	
Applicable Margin

	
1

	  	
At least BBB+ or Baa1

	  	
1.50%

	
2

	  	
At least BBB or Baa2

	  	
1.75%

	
3

	  	
At least BBB- or Baa3

	  	
1.95%

	
4

	
  

	
Below BBB- or Baa3, or unrated

	
  

	
2.25%

 

  

- 2 -

  

 

Any change in the Trust’s Debt Rating which would cause the Applicable Margin to move to a different Pricing Level shall be effective as of the first day of the calendar month immediately following receipt by the Agent of written notice delivered by the Trust in accordance with Section 8.4.(k) that the Trust’s Debt Rating has changed; provided, however, if the Trust has not delivered the notice required by such Section but the Agent becomes aware that the Trust’s Debt Rating has changed which would cause a change the Pricing Level at which the Applicable Margin is determined, then the Agent may, in its sole discretion, adjust the Pricing Level effective as of the first day of the calendar month following the date the Agent becomes aware that the Trust’s Debt Rating has changed.  During any period that the Trust has received only two Debt Ratings that are not equivalent, the Applicable Margin shall be determined based on the Pricing Level corresponding to the higher of such two Debt Ratings; provided however that if one of the Debt Ratings is from Fitch then the Applicable Margin shall be determined based on the Pricing Level corresponding to the Debt Rating of S&P or Moody’s, as applicable.  During any period that the Trust has received Debt Ratings from three Rating Agencies and such Debt Ratings are not equivalent, the Applicable Margin shall be determined based on the Pricing Level corresponding to the lower of the two highest such Debt Ratings.  During any period for which the Trust has received a Debt Rating from only one Rating Agency, then the Applicable Margin shall be determined based on such Debt Rating so long as such Debt Rating is from either S&P or Moody’s.  During any period that the Trust has (i) not received a Debt Rating from any Rating Agency or (ii) received a Debt Rating from only one Rating Agency that is neither S&P or Moody’s, the Applicable Margin shall be determined based on Pricing Level 4.

(c)           Prior to the Release Date, the provisions of this definition shall be subject to Section 2.4.(c).

 

“Approved Fund” shall mean any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Arranger” means Wells Fargo Securities, LLC, as sole arranger and sole bookrunner, together with its successors and permitted assigns.

 

“Assignment and Assumption” means an Assignment and Assumption Agreement among a Lender, an Eligible Assignee, the Agent, and, if applicable, the Borrower Representative, substantially in the form of Exhibit A.

 

“Assumed Borrowing Base Debt Service” means an assumed annual debt service payment on account of all Reference Debt, determined assuming debt service based on the greater of (a) an eight percent (8.00%) debt service constant, (b) the actual debt service payments due on account of such Reference Debt, or (c) a twenty-five year, mortgage-style principal amortization with interest accruing at the imputed ten (10) year United States Treasury bill yield at any time of calculation based upon published quotes for Treasury bills having ten (10) years to maturity plus two and one-half percent (2.50%) per annum.

 

“Availability” means, from time to time, (i) the Borrowing Base Value minus (ii) the outstanding amount of the Reference Debt (excluding the Obligations); to the extent the amount of Availability attributable to Ground Leases with a remaining term of thirty (30) years or less from the Agreement Date would exceed ten percent (10%) of the Availability, such excess shall be excluded from Availability.

 

  

- 3 -

  

 

“Availability Termination Date” means January 13, 2013.

 

“Base Rate” means the LIBOR Market Index Rate; provided, that if for any reason the LIBOR Market Index Rate is unavailable, Base Rate shall mean the per annum rate of interest equal to the Federal Funds Rate plus one and one-half of one percent (1.50%).

 

“Base Rate Loan” means a Loan (or portion thereof) bearing interest at a rate based on the Base Rate.

 

“Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise contributed to by any member of the ERISA Group.

 

“Borrower” has the meaning set forth in the introductory paragraph hereof and shall include a Borrower’s successors and permitted assigns.

 

“Borrower Information” has the meaning set forth in Section 2.4(c).

 

“Borrower Representative” means the Trust.

 

“Borrowing Base Assets” means Eligible Unencumbered Properties that have been approved by the Agent and the Requisite Lenders as Borrowing Base Assets.

 

“Borrowing Base Assets Pool” means, collectively at any time, all Borrowing Base Assets. The initial Borrowing Base Assets Pool is set forth on the schedule of initial Borrowing Base Assets annexed hereto as Exhibit K.

 

“Borrowing Base Assumed Debt Service Coverage Ratio” shall mean the ratio of (a) Borrowing Base NOI to (b) Assumed Borrowing Base Debt Service.

 

“Borrowing Base Certificate” means a certificate, identifying the Borrowing Base Assets, setting forth the calculation of Availability, and providing other information concerning the Borrowing Base Assets and the Borrowers, in the form attached hereto as Exhibit I.

 

“Borrowing Base Mortgageability Amount” means, from time to time, the maximum principal amount of Reference Debt that would provide a Borrowing Base Assumed Debt Service Coverage Ratio equal to 1.75:1.00.

 

“Borrowing Base NOI” means Net Operating Income for the prior four fiscal quarters from the Borrowing Base Assets Pool.

 

“Borrowing Base Value” means, from time to time, the lesser of (a) the Value of the Borrowing Base Assets in the Borrowing Base Assets Pool multiplied by sixty percent (60%) and (b) the Borrowing Base Mortgageability Amount.

 

  

- 4 -

  

 

“Business Day” means (a) a day of the week (but not a Saturday, Sunday or holiday) on which the offices of the Agent in New York, New York are open to the public for carrying on substantially all of the Agent’s business functions, and (b) if such day relates to a LIBOR Loan, any such day that is also a day on which dealings in Dollars are carried on in the London interbank market.  Unless specifically referenced in this Agreement as a Business Day, all references to “days” shall be to calendar days.

 

“Capital Reserves” means, for any period and with respect to a Property, an amount equal to (a) $0.05 per square foot times (b) a fraction, the numerator of which is the number of days in such period and the denominator of which is 365.  If the term Capital Reserves is used without reference to any specific Property, then the amount shall be determined on an aggregate basis with respect to all Properties of the Trust and its Subsidiaries and a proportionate share of all Properties of all Unconsolidated Affiliates.

 

“Capitalization Rate” means 8.00%.

 

“Capitalized Lease Obligation” means an obligation under a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.  The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation as would be required to be reflected on a balance sheet of the applicable Person prepared in accordance with GAAP as of the applicable date.

 

“Capitalized Value” means the sum of all of the following of the Trust and its Subsidiaries on a consolidated basis determined in accordance with GAAP applied on a consistent basis: (a) cash and Cash Equivalents, plus (b) (i) Adjusted EBITDA for the two most recent quarters multiplied by (ii) 2 divided by (iii) the Capitalization Rate, plus (c) the GAAP book value of Properties acquired during the two most recent quarters, plus (d) Construction-in-Process until the Property is substantially complete which in no case will go beyond 18 months from commencement, plus (e) the GAAP book value of Unimproved Land, mortgages and notes.  Borrowers’ pro rata share of Unconsolidated Affiliates will be included in calculations of Capitalized Value consistent with the above treatment for wholly owned assets.  For purposes of determining Capitalized Value, EBITDA attributable to assets described in any of the immediately preceding clauses (c) through (e) shall be excluded from Adjusted EBITDA.

 

“Cash Equivalents” means: (a) securities issued, guaranteed or insured by the United States of America or any of its agencies with maturities of not more than one year from the date acquired; (b) certificates of deposit with maturities of not more than one year from the date acquired issued by a United States federal or state chartered commercial bank of recognized standing, or a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of any such country, acting through a branch or agency, which bank has capital and unimpaired surplus in excess of $500,000,000.00 and which bank or its holding company has a short-term commercial paper rating of at least A-2 or the equivalent by S&P or at least P-2 or the equivalent by Moody’s; (c) reverse repurchase agreements with terms of not more than seven days from the date acquired, for securities of the type described in clause (a) above and entered into only with commercial banks having the qualifications described in clause (b) above; (d) commercial paper issued by any Person incorporated under the laws of the United States of America or any State thereof and rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s, in each case with maturities of not more than one year from the date acquired; and (e) investments in money market funds registered under the Investment Company Act of 1940, as amended, which have net assets of at least $500,000,000.00 and at least 85% of whose assets consist of securities and other obligations of the type described in clauses (a) through (d) above.

 

  

- 5 -

  

 

“Collateral” means any real or personal property directly or indirectly securing any of the Obligations or any other obligation of a Person under or in respect of any Loan Document.

 

“Commitment” means, as to each Lender, such Lender’s obligation to make Loans pursuant to Section 2.1. in an amount up to, but not exceeding the amount set forth for such Lender on Schedule I as such Lender’s “Commitment Amount” or as set forth in any applicable Assignment and Assumption, as the same may be increased or reduced as appropriate to reflect any assignments to or by such Lender effected in accordance with Section 12.5.

“Commitment Percentage” means, as to each Lender, the ratio, expressed as a percentage, of (a) the amount of such Lender’s Commitment to (b) the aggregate amount of the Commitments of all Lenders; provided, however, that if at the time of determination the Commitments have been terminated or been reduced to zero, the “Commitment Percentage” of each Lender shall be the ratio, expressed as a percentage, of (x) the aggregate outstanding principal amount of such Lender’s Loans to (y) the aggregate outstanding principal amount of all Loans.

“Compliance Certificate” has the meaning given that term in Section 8.3.

 

“Confirmation Request” has the meaning given that term in Section 7.15(a).

 

“Construction Budget” means the fully-budgeted costs for the acquisition and construction of a given parcel of real property (including, without limitation, the cost of acquiring such parcel of real property, reserves for construction interest and operating deficits, tenant improvements, leasing commissions and infrastructure costs) as reasonably determined by the Trust in good faith.

 

“Construction-in-Process” means as of any date of determination, cash expenditures for land and improvements (including indirect costs internally allocated and development costs) determined in accordance with GAAP on all Properties that are under development as of such date or are scheduled to commence development within twelve months from such date of determination.

 

“Continue”, “Continuation” and “Continued” each refers to the continuation of a LIBOR Loan from one Interest Period to another Interest Period pursuant to Section 2.8.

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

  

- 6 -

  

 

“Convert”, “Conversion” and “Converted” each refers to the conversion of a Loan of one Type into a Loan of another Type pursuant to Section 2.9.

 

“Credit Event” means any of the following: (a) the making (or deemed making) of any Loan, (b) the Conversion of a Loan, or (c) the Continuation of a Loan.

 

“Credit Underwriting Documents” has the meaning given that term in Section 7.15(a).

 

“Debt Rating” means, as of any date of determination, the rating as determined by a Rating Agency of a Person’s non-credit enhanced, senior unsecured long term debt. The Debt Rating in effect at any date is the Debt Rating that is in effect at the close of business on such date.

 

“Debt Service” means, for any period, the sum of (a) Interest Expense, and (b) all regularly scheduled principal payments made with respect to Indebtedness of the Trust and its Subsidiaries during such period, other than any balloon, bullet, early repayment or similar principal payment which, in each case, repays such Indebtedness in full.  Debt Service shall include a proportionate share of items (a) and (b) of all Unconsolidated Affiliates.

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

 

“Default” means any of the events specified in Section 10.1, whether or not there has been satisfied any requirement for the giving of notice, the lapse of time, or both.

 

 “Defaulting Lender” means, subject to Section 3.11.(d), any Lender that (a) has failed to (i) fund all or any portion of its Loans within 2 Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Agent and the Borrower Representative in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Agent or any other Lender any other amount required to be paid by it hereunder within 2 Business Days of the date when due, (b) has notified the Borrower Representative or the Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within 3 Business Days after written request by the Agent or the Borrower Representative, to confirm in writing to the Agent and the Borrower Representative that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Agent and the Borrower Representative), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States of America or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 3.11.(e)) upon delivery of written notice of such determination to the Borrower Representative and each Lender.

 

  

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“Derivatives Contract” means 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, including any such obligations or liabilities under any such master agreement.

 

“Derivatives Termination Value” means, in respect of any one or more Derivatives Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Derivatives Contracts, (a) for any date on or after the date such Derivatives Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for such Derivatives Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Derivatives Contracts (which may include Agent or any Lender).

 

“Designated Property” has the meaning given that term in Section 7.15(e).

 

“Development Property” means a Property which is being developed to become an office, industrial or retail property.

 

  

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“Dollars” or “$” means the lawful currency of the United States of America.

 

“EBITDA” means, with respect to a Person for any period (without duplication): (a) net income (loss) of such Person for such period determined on a consolidated basis, in accordance with GAAP, excluding the following (but only to the extent included in determination of such net income (loss)): (i) depreciation and amortization; (ii) Interest Expense; (iii) income tax expense; (iv) extraordinary or non-recurring gains and losses; (v) noncash charges and credits; and (vi) gains and losses from sales of assets; plus (b) such Person’s pro rata share of EBITDA of its Unconsolidated Affiliates.  EBITDA shall be adjusted to remove any impact from straight line rent leveling adjustments required under GAAP and amortization of intangibles associated with the amortization of above or below market rents pursuant to Statement of Financial Accounting Standards No. 141.

 

“Effective Date” means the later of: (a) the Agreement Date; and (b) the date on which all of the conditions precedent set forth in Section 5.1 shall have been fulfilled or waived in writing by all of the Lenders.

 

“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund and (d) any other Person (other than a natural person) approved by the Agent  (such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include (i) any Borrower or any Affiliates or Subsidiaries of any Borrower or (ii) any Defaulting Lender or any of its Subsidiaries, or any Person who upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (ii).

 

“Eligible Unencumbered Property” means a Property which satisfies all of the following requirements: (a) such Property is located in a state of the United States of America or in the District of Columbia and is wholly owned in fee simple by, or subject to a Ground Lease in favor of, a Borrower or a Wholly Owned Subsidiary of a Borrower, with the non-wholly owned property owned by CTO Associates Limited Partnership being deemed to satisfy this requirement so long as the Trust’s relative percentage ownership of the voting Equity Interests in such Person does not decrease from the Trust’s relative percentage ownership interest on the Agreement Date; (b) such Property is an office, industrial or retail Property; (c) such Property is leased with minimum Occupancy Rate of eighty percent (80%) with tenants in occupancy; (d) such tenants are not more than 30 days past due in respect of lease payments; (e) such Property is free of all structural defects or major architectural deficiencies, title defects, environmental conditions or other adverse matters except for defects, deficiencies, conditions or other matters individually or collectively which are not material to the profitable operation of such Property; and (f) such Property is free of any Liens other than Permitted Liens of the types described in clauses (a) through (g) of the definition of such term.

 

“Environmental Laws” means any Applicable Law relating to environmental protection or the manufacture, storage, treatment, disposal or clean-up of Hazardous Materials including, without limitation, the following: Clean Air Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.; Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.; National Environmental Policy Act, 42 U.S.C. § 4321 et seq.; regulations of the United States Environmental Protection Agency and any applicable rule of common law and any judicial interpretation thereof relating primarily to environmental protection or Hazardous Materials.

 

  

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“Equity Interest” means, with respect to any Person, any share of capital stock of (or other ownership or profit interests in) such Person, any warrant, option or other right for the purchase or other acquisition from such Person of any share of capital stock of (or other ownership or profit interests in) such Person, any security convertible into or exchangeable for any share of capital stock of (or other ownership or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person of such shares (or such other interests), and any other ownership or profit interest in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such share, warrant, option, right or other interest is authorized or otherwise existing on any date of determination.

 

“Equity Issuance” means any issuance by a Person of any Equity Interest in such Person and shall in any event include the issuance of any Equity Interest upon the conversion or exchange of any security constituting Indebtedness that is convertible or exchangeable, or is being converted or exchanged, for Equity Interests.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as in effect from time to time.

 

“ERISA Group” means the Borrowers, any of their Subsidiaries and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrowers or any of their Subsidiaries, are treated as a single employer under Section 414 of the Internal Revenue Code.

 

“Event of Default” means any of the events specified in Section 10.1, provided that any requirement for notice or lapse of time or any other condition has been satisfied.

 

“Existing Credit Agreement” means that (i) certain Credit Agreement dated as of January 28, 2011, as amended, by and among the Borrowers, the institutions from time to time party thereto as Lenders and KeyBank National Association, as Agent, and (ii) the agreements, instruments and other documents executed in connection with such credit agreement.

 

“Fair Market Value” means, with respect to (a) a security listed on a national securities exchange or the NASDAQ National Market, the price of such security as reported on such exchange or market by any widely recognized reporting method customarily relied upon by financial institutions and (b) with respect to any other property, the price which could be negotiated in an arm’s-length free market transaction, for cash, between a willing seller and a willing buyer, neither of which is under pressure or compulsion to complete the transaction.

 

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Agent from three Federal Funds brokers of recognized standing selected by the Agent.

 

  

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“Fee Letter” means that certain Fee Letter dated as of November 7, 2011 by and among the Borrowers, the Arranger and Wells Fargo.

 

“Fees” means the fees and commissions provided for or referred to in Section 3.6 and any other fees payable by the Borrowers hereunder or under any other Loan Document.

 

“Fitch” means Fitch, Inc., and its successors.

 

“Fixed Charges” means, for any period, the sum of (a) Debt Service for such period and (b) all Preferred Dividends paid during such period.  The Trust’s pro rata share of the Fixed Charges of Unconsolidated Affiliates of the Trust shall be included in determinations of Fixed Charges.

 

“Floating Rate Indebtedness” means all Indebtedness of a Person which bears interest at a variable rate during the scheduled life of such Indebtedness and for which such Person has not obtained interest rate swap agreements, interest rate “cap” or “collar” agreements or other similar Derivatives Contracts which effectively cause such variable rates to be equivalent to fixed rates acceptable to the Agent.

 

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than the United States of America, any State thereof or the District of Columbia.

 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

 

“Funds From Operations” means, for a given period, net income (loss) of the Trust and its Subsidiaries determined on a consolidated basis for such period exclusive of the following (to the extent included in the determination of such net income (loss)): (a) gains (or losses) from debt restructuring and sales of property during such period, (b) any non-cash charges recorded from asset impairments and (c) depreciation with respect to real estate assets and amortization (other than amortization of deferred financing costs) of such Person for such period, all after adjustment for unconsolidated partnerships and joint ventures.  Adjustments for unconsolidated entities will be calculated to reflect funds from operations on the same basis.  Funds From Operations will be adjusted to remove all impact of straight lining of rents, amortization of intangibles associated with the amortization of above or below market rents, pursuant to Statement of Financial Accounting Standards No. 141 and calculation of interest expense in accordance with FSB APB 14-1.

 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination; provided that, for any calculations hereunder, to the extent GAAP requires balance sheet or income statement accounts to be stated at fair market value or any change in GAAP that changes lease accounting, the impact of such change in GAAP shall be excluded.

 

  

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“Governmental Approvals” means all authorizations, consents, approvals, licenses and exemptions of, registrations and filings with, and reports to, all Governmental Authorities.

 

“Governmental Authority” means any national, state or local government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi-governmental, judicial, public or statutory instrumentality, authority, body, agency, bureau, commission, board, department or other entity (including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency or the Federal Reserve Board, any central bank or any comparable authority) or any arbitrator with authority to bind a party at law.

 

“Ground Lease” means a ground lease containing the following terms and conditions: (a) a remaining term (including any unexercised extension options that the lessee can unilaterally exercise without the need to obtain the consent of the lessor or to pay the lessor any amount as a condition to the effectiveness of such extension) of 15 years or more from the Agreement 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 foreclosures, and fails to do so; (d) reasonable transferability of the lessee’s interest under such lease, including 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; provided that the ground lease with respect to the Property located in Palo Alto, California owned by Newkirk Orper L.P. in the form in effect as of the Agreement Date shall be deemed to satisfy the requirements of a Ground Lease hereunder.

 

“Guarantor” means any Person that is or becomes a party to the Guaranty as a “Guarantor” in that such Person directly, or indirectly through one or more other Subsidiaries, owns any Property Subsidiary.

 

“Guaranty”, “Guaranteed”, “Guarantying” or to “Guarantee” as applied to any obligation means and includes:  (a) a guaranty (other than by endorsement of negotiable instruments for collection or deposit in the ordinary course of business), directly or indirectly, in any manner, of any part or all of such obligation, or (b) an agreement, direct or indirect, contingent or otherwise, and whether or not constituting a guaranty, the practical effect of which is to assure the payment or performance (or payment of damages in the event of nonperformance) of any part or all of such obligation whether by: (i) the purchase of securities or obligations, (ii) the purchase, sale or lease (as lessee or lessor) of property or the purchase or sale of services primarily for the purpose of enabling the obligor with respect to such obligation to make any payment or performance (or payment of damages in the event of nonperformance) of or on account of any part or all of such obligation, or to assure the owner of such obligation against loss, (iii) the supplying of funds to or in any other manner investing in the obligor with respect to such obligation, (iv) repayment of amounts drawn down by beneficiaries of letters of credit, or (v) the supplying of funds to or investing in a Person on account of all or any part of such Person’s obligation under a Guaranty of any obligation or indemnifying or holding harmless, in any way, such Person against any part or all of such obligation.  As the context requires, “Guaranty” shall also mean the Guaranty to which the Guarantors are parties substantially in the form of Exhibit H.

 

  

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“Hazardous Materials” means all or any of the following: (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable Environmental Laws as “hazardous substances”, “hazardous materials”, “hazardous wastes”, “toxic substances” or any other formulation intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP” toxicity or “EP toxicity”; (b) oil, petroleum or petroleum derived substances, natural gas, natural gas liquids or synthetic gas and drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas or geothermal resources; (c) any flammable substances or explosives or any radioactive materials; (d) asbestos in any form; (e) toxic mold; and (f) electrical equipment which contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million.

 

“Indebtedness” means, with respect to a Person, at the time of computation thereof, all of the following (without duplication): (a) all obligations of such Person in respect of money borrowed; (b) all obligations of such Person, whether or not for money borrowed (i) represented by notes payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money indebtedness, conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily paid or that are issued or assumed as full or partial payment for property or services rendered; (c) Capitalized Lease Obligations of such Person; (d) all reimbursement obligations (contingent or otherwise) of such Person in respect of letters of credit or acceptances (whether or not the same have been presented for payment); (e) all Off-Balance Sheet Obligations of such Person; (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Mandatorily Redeemable Stock issued by such Person or any other Person, valued at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; (g) all obligations of such Person in respect of any purchase obligation, repurchase obligation, takeout commitment or forward equity commitment, in each case evidenced by a binding agreement (excluding any such obligation to the extent the obligation can be satisfied by the issuance of Equity Interests (other than Mandatorily Redeemable Stock)); (h) net obligations under any Derivatives Contract not entered into as a hedge against existing Indebtedness, in an amount equal to the Derivatives Termination Value thereof; (i) all Indebtedness of other Persons which such Person has Guaranteed or is otherwise recourse to such Person (except for guaranties of customary exceptions for fraud, misapplication of funds, environmental indemnities and other similar events, and other similar exceptions to nonrecourse liability (but not exceptions relating to voluntary bankruptcy, insolvency, or receivership or other similar events)); (j) all Indebtedness of another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness or other payment obligation; and (k) such Person’s pro rata share of the Indebtedness of any Unconsolidated Affiliate of such Person.  Notwithstanding the preceding sentence, the calculation of liabilities shall not include any fair value adjustments to the carrying value of liabilities to record such liabilities at fair value pursuant to electing the fair value option election under FASB ASC 825-10-25 (formerly known as FAS 159, The Fair Value Option for Financial Assets and Financial Liabilities) or other FASB standards allowing entities to elect fair value option for financial liabilities.  All Loans shall constitute Indebtedness of the Borrowers.  Indebtedness shall be adjusted to remove (i) any impact of intangibles pursuant to ASC 805, as codified by the Financial Accounting Standards Board in June of 2009, (ii) any impact from Asset Retirement Obligations pursuant to ASC 410, as codified by the Financial Accounting Standards Board in June of 2009, (iii) any potential impact from an accounting standard substantially similar to that proposed in the exposure draft issued by the Financial Accounting Standards Board in August of 2010 related to Leases (Topic 840), and (iv) any indebtedness that can be fully satisfied by issuing Equity Interests (other than Mandatorily Redeemable Stock) at a Borrower’s option.

 

  

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“Information Materials” has the meaning given to such term in Section 12.15.

 

“Intellectual Property” has the meaning given that term in Section 6.1(t).

 

“Intercreditor Agreement” means that certain Intercreditor Agreement dated as of the date hereof, entered in to between the Agent and Revolver Agent.

 

“Interest Expense” means, for any period, without duplication, (a) total interest expense of the Trust and its Subsidiaries, including capitalized interest not funded under a construction loan interest reserve account, determined on a consolidated basis for such period, plus (b) the Trust’s pro rata share of Interest Expense of Unconsolidated Affiliates for such period.  Notwithstanding anything to the contrary, Interest Expense shall not include any amortization of deferred financing costs or the impact of ASC 470.20, as codified by the Financial Accounting Standards Board, in accordance with GAAP.

 

“Interest Period” means, with respect to each LIBOR Loan, each period commencing on the date such LIBOR Loan is made, or in the case of the Continuation of a LIBOR Loan the last day of the preceding Interest Period for such Loan, and ending on the numerically corresponding day in the first, second or third calendar month thereafter, as the Borrower Representative may select in a Notice of Borrowing, Notice of Continuation or Notice of Conversion, as the case may be, except that each Interest Period that commences on the last Business Day of a calendar month (or on any day for which there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Business Day of the appropriate subsequent calendar month.  Notwithstanding the foregoing: (a) if any Interest Period would otherwise end after the Termination Date, such Interest Period shall end on the Termination Date; and (b) each Interest Period that would otherwise end on a day which is not a Business Day shall end on the immediately following Business Day (or, if such immediately following Business Day falls in the next calendar month, on the immediately preceding Business Day).

 

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.

 

  

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“Investment” means, with respect to any Person, any acquisition or investment (whether or not of a controlling interest) by such Person, whether by means of:  (a) the purchase or other acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit to, capital contribution to, Guaranty of Indebtedness of, or purchase or other acquisition of any Indebtedness of, another Person, including any partnership or joint venture interest in such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute the business or a division or operating unit of another Person.  Any binding commitment to make an Investment in any other Person, as well as any option of another Person to require an Investment in such Person, shall constitute an Investment.  Except as expressly provided otherwise, for purposes of determining compliance with any covenant contained in a Loan Document, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

 

“Investment Grade Rating” means a Debt Rating of BBB- or better from S&P or Fitch, or Baa3 or better from Moody’s.

 

“Lender” shall mean the various Lenders which have each issued or hereafter issue a Commitment hereunder, together with their respective successors and permitted assigns.

 

“Lending Office” means, for each Lender and for each Type of Loan, the office of such Lender specified in such Lender’s Administrative Questionnaire or in the applicable Assignment and Assumption, or such other office of such Lender as such Lender may notify the Agent in writing from time to time.

“Leverage” has the meaning given that term in Section 9.1(a).

 

“LIBOR” means, for the Interest Period for any LIBOR Loan, the rate of interest, rounded up to the nearest whole multiple of one-hundredth of one percent (0.01%), obtained by dividing (i) the rate of interest, rounded upward to the nearest whole multiple of one-hundredth of one percent (0.01%), referred to as the BBA (British Bankers’ Association) LIBOR rate as set forth by any service selected by the Agent that has been nominated by the British Bankers’ Association as an authorized information vendor for the purpose of displaying such rate for deposits in Dollars at approximately 9:00 a.m. Pacific time, two (2) Business Days prior to the date of commencement of such Interest Period for purposes of calculating effective rates of interest for loans or obligations making reference thereto, for an amount approximately equal to the applicable LIBOR Loan and for a period of time approximately equal to such Interest Period by (ii) a percentage equal to 1 minus the stated maximum rate (stated as a decimal) of all reserves, if any, required to be maintained with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) as specified in Regulation D of the Board of Governors of the Federal Reserve System (or against any other category of liabilities which includes deposits by reference to which the interest rate on LIBOR Loans is determined or any applicable category of extensions of credit or other assets which includes loans by an office of any Lender outside of the United States of America).  Any change in such maximum rate shall result in a change in LIBOR on the date on which such change in such maximum rate becomes effective.

 

“LIBOR Loan” means a Loan (or any portion thereof) bearing interest at a rate based on LIBOR.

 

  

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“LIBOR Market Index Rate” means, for any day, LIBOR as of that day that would be applicable for a LIBOR Loan having a one-month Interest Period determined at approximately 9:00 a.m. Pacific time for such day (or if such day is not a Business Day, the immediately preceding Business Day).  The LIBOR Market Index Rate shall be determined on a daily basis.

 

“Lien” as applied to the property of any Person means: (a) any security interest, encumbrance, mortgage, deed to secure debt, deed of trust, assignment of leases and rents, pledge, lien, charge or lease constituting a Capitalized Lease Obligation, conditional sale or other title retention agreement, or other security title or encumbrance of any kind in respect of any property of such Person, or upon the income, rents or profits therefrom; (b) any arrangement, express or implied, under which any property of such Person is transferred, sequestered or otherwise identified for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to the payment of the general, unsecured creditors of such Person; (c) the filing of any financing statement under the Uniform Commercial Code or its equivalent in any jurisdiction, other than any precautionary filing not otherwise constituting or giving rise to a Lien, including a financing statement filed (i) in respect of a lease not constituting a Capitalized Lease Obligation pursuant to Section 9-505 (or a successor provision) of the Uniform Commercial Code or its equivalent as in effect in an applicable jurisdiction or (ii) in connection with a sale or other disposition of accounts or other assets not prohibited by this Agreement in a transaction not otherwise constituting or giving rise to a Lien; and (d) any agreement by such Person to grant, give or otherwise convey any of the foregoing.

 

“Loan” means a loan made by a Lender to any Borrower pursuant to Section 2.1 or Section 2.15.

 

“Loan Document” means this Agreement, each Note, the Pledge Agreement, the Guaranty, the Intercreditor Agreement and each other document or instrument now or hereafter executed and delivered by a Loan Party in connection with, pursuant to or relating to this Agreement (other than the Fee Letter).

 

“Loan Party” means each of the Borrowers and each Person who guarantees all or a portion of the Obligations and/or who pledges any collateral security to secure all or a portion of the Obligations.  Schedule 1.1.(A) sets forth the Loan Parties in addition to the Borrowers as of the Agreement Date.

 

“LRT Entity” means each Person in which the Agent, on behalf of the Lenders, is granted a Lien on the Equity Interests of such Person pursuant to the Pledge Agreement.

 

  

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“Mandatorily Redeemable Stock” means, with respect to the Trust or any Subsidiary, any Equity Interest thereof which by the terms of such Equity Interest (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than an Equity Interest to the extent redeemable in exchange for common stock or other equivalent common Equity Interests), (b) is convertible into or exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock, or (c) is redeemable at the option of the holder thereof, in whole or in part (other than an Equity Interest which is redeemable solely in exchange for common stock or other equivalent common Equity Interests), in each case on or prior to the Termination Date.  For the avoidance of doubt, the parties hereto agree that the following Equity Interests of the Trust do not qualify as Mandatorily Redeemable Stock based on their terms as in effect on the Agreement Date: (v) 8.05% Series B Cumulative Redeemable Preferred Stock established pursuant to Articles Supplementary filed by the Trust on June 17, 2003 with the Department of Assessments and Taxation of the State of Maryland, (w) 6.50% Series C Cumulative Convertible Preferred Stock established pursuant to Articles Supplementary filed by the Trust on December 8, 2004 with the Department of Assessments and Taxation of the State of Maryland, (x) 7.55% Series D Cumulative Redeemable Preferred Stock established pursuant to Articles Supplementary filed by the Trust on February 14, 2007 with the Department of Assessments and Taxation of the State of Maryland, (y) 5.45% Exchangeable Guaranteed Notes due 2027 established pursuant to an Indenture and First Supplemental Indenture dated as of January 29, 2007, a Second Supplemental Indenture dated as of March 9, 2007, a Third Supplemental Indenture dated as of June 19, 2007, a fourth Supplemental Indenture dated as of December 31, 2008, and a fifth Supplemental Indenture dated as of June 9, 2009, and (z) 6.00% Convertible Guaranteed Notes pursuant to an Indenture dated January 29, 2007, a fourth Supplemental Indenture dated as of December 31, 2008, a fifth Supplemental Indenture dated as of June 9, 2009, and a sixth Supplemental Indenture dated as of January 26, 2010.

 

“Material Adverse Effect” means a materially adverse effect on (a) the business or financial condition of the Trust and its Subsidiaries taken as a whole, (b) the ability of any Borrower or any other Loan Party to perform its obligations under any Loan Document to which it is a party, (c) the validity or enforceability of any of the Loan Documents, or (d) the rights and remedies of the Lenders or the Agent under any of the Loan Documents.

 

“Material Contract” means any contract or other arrangement (other than Loan Documents), whether written or oral, to which any Borrower, any other Loan Party or any other Subsidiary is a party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect.

 

“Moody’s” means Moody’s Investors Service, Inc., and its successors.

 

“Mortgage” means a mortgage, deed of trust, deed to secure debt or similar security instrument made by a Person owning an interest in real property granting a Lien on such interest in real property as security for the payment of Indebtedness of such Person or another Person.

 

“Mortgage Receivable” means a promissory note secured by a Mortgage of which a Borrower, a Guarantor or one of their respective Subsidiaries is the holder and retains the rights of collection of all payments thereunder.

 

“Multiemployer Plan” means at any time a multiemployer plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such five year period.

 

  

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“Negative Pledge” means, with respect to a given asset, any provision of a document, instrument 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; provided, however, that an agreement that conditions a Person’s ability to encumber its assets upon the maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets, shall not constitute a Negative Pledge.

 

“Net Operating Income” means, for any Property and for a given period, the sum of the following (without duplication and determined on a consistent basis with prior periods): (a) rents and other revenues received in the ordinary course from such Property (including proceeds of rent loss or business interruption insurance but excluding pre-paid rents and revenues and security deposits except to the extent applied in satisfaction of tenants’ obligations for rent) minus (b) all expenses paid (excluding interest but including an appropriate accrual for property taxes and insurance) related to the ownership, operation or maintenance of such Property, including but not limited to property taxes, assessments and the like, insurance, utilities, payroll costs, maintenance, repair and landscaping expenses, marketing expenses, and general and administrative expenses (including an appropriate allocation for legal, accounting, advertising, marketing and other expenses incurred in connection with such Property, but specifically excluding general overhead expenses of a Borrower or any Subsidiary and any property management fees).

 

“Net Proceeds” means with respect to any Equity Issuance by a Person, the aggregate amount of all cash and the Fair Market Value of all other property (other than securities of such Person being converted or exchanged in connection with any such Equity Issuance) received by such Person in respect of such Equity Issuance net of investment banking fees, legal fees, accountants’ fees, underwriting discounts and commissions and other customary fees and expenses actually incurred by such Person in connection with such Equity Issuance.  Notwithstanding the foregoing, Net Proceeds will not include net proceeds from any Equity Issuance to the extent used to redeem an existing class of Equity Interest of the Trust or any of its Subsidiaries.

 

“Nonrecourse Indebtedness” means, with respect to a Person, Indebtedness for borrowed money in respect of which recourse for payment (except for customary exceptions for fraud, misapplication of funds, environmental indemnities, bankruptcy, insolvency, receivership and other similar events, and other similar exceptions to nonrecourse liability) is contractually limited to specific assets of such Person encumbered by a Lien securing such Indebtedness.  Liability of a Person under a completion guarantee for a Development Property, to the extent relating to the Nonrecourse Indebtedness of another Person, shall not, in and of itself, prevent such liability from being characterized as Nonrecourse Indebtedness.

 

“Note” has the meaning given that term in Section 2.10.

 

“Notice of Borrowing” means a notice substantially in the form of Exhibit B (or such other form reasonably acceptable to the Agent and containing the information required in such Exhibit) to be delivered to the Agent pursuant to Section 2.1. evidencing a request for a borrowing of Loans.

 

  

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“Notice of Continuation” means a notice substantially in the form of Exhibit C (or such other form reasonably acceptable to the Agent and containing the information required in such Exhibit) to be delivered to the Agent pursuant to Section 2.8. evidencing a request for the Continuation of a LIBOR Loan.

 

“Notice of Conversion” means a notice substantially in the form of Exhibit D (or such other form reasonably acceptable to the Agent and containing the information required in such Exhibit) to be delivered to the Agent pursuant to Section 2.9. evidencing a request for the Conversion of a Loan from one Type to another Type.

 

“Obligations” means, individually and collectively: (a) the aggregate principal balance of, and all accrued and unpaid interest on, all Loans and (b) all other indebtedness, liabilities, obligations, covenants and duties of the Borrowers and the other Loan Parties owing to the Agent or any Lender of every kind, nature and description, under or in respect of this Agreement or any of the other Loan Documents, including, without limitation, the Fees and indemnification obligations, whether direct or indirect, absolute or contingent, due or not due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any promissory note, and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest or fees are allowed claims in such proceeding.

 

“Occupancy Rate” means, with respect to a Property at any time, the ratio, expressed as a percentage, of (a) the net rentable square footage of such Property leased and occupied by tenants that are not Affiliates paying rent at rates not materially less than rates generally prevailing at the time the applicable lease was entered into, pursuant to binding leases as to which no monetary default has occurred and has continued unremedied for 30 or more days to (b) the aggregate net rentable square footage of such Property.

 

“OFAC” has the meaning given that term in Section 6.1.(y).

 

“Off-Balance Sheet Obligations” means liabilities and obligations of the Trust, any Subsidiary or any other Person in respect of “off-balance sheet arrangements” (as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act) which the Trust would be required to disclose in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the Trust’s report on Form 10-Q or Form 10-K (or their equivalents) which the Trust is required to file with the Securities and Exchange Commission (or any Governmental Authority substituted therefor).

 

“Operating Partnership” means LCIF and/or LCIFII.

 

“Participant” has the meaning given that term in Section 12.5(d).

 

“Participant Register” has the meaning given that term in Section 12.5(d).

 

“PBGC” means the Pension Benefit Guaranty Corporation and any successor agency.

 

  

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“Permitted Financing” means a sale, financing or refinancing of a Borrowing Base Asset.

 

“Permitted Liens” means, as to any Person: (a) Liens securing taxes, assessments and other charges or levies imposed by any Governmental Authority (excluding any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental Laws) or the claims of materialmen, mechanics, carriers, warehousemen or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, which are not at the time required to be paid or discharged under Section 7.6; (b) Liens consisting of deposits or pledges made, in the ordinary course of business, in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance or similar Applicable Laws; (c) Liens consisting of encumbrances in the nature of zoning restrictions, easements, and rights or restrictions of record on the use of real property, which do not materially detract from the value of such property for its intended business use or impair the intended business use thereof in the business of such Person; (d) the rights of tenants under leases or subleases not interfering with the ordinary conduct of business of such Person; (e) Liens in favor of the Agent for the benefit of the Lenders as security for the Obligations; (f) Liens in favor of the Revolver Agent for the benefit of the Lenders (as defined in the Revolving Credit Agreement) as security for the Obligations (as defined in the Revolving Credit Agreement); (g) Liens in favor of a Borrower or a Guarantor securing obligations owing by a Subsidiary to such Borrower or such Guarantor, which obligations have been subordinated to the Obligations on terms satisfactory to the Agent; and (h) Liens in existence as of the Agreement Date and set forth in Part II of Schedule 6.1(f).

 

“Person” means an individual, corporation, partnership, limited liability company, association, trust or unincorporated organization, or a government or any agency or political subdivision thereof.

 

“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (a) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of the ERISA Group or (b) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any Person which was at such time a member of the ERISA Group.

 

“Pledge Agreement” means the Pledge Agreement executed by the Pledgors in favor of the Agent and substantially in the form of Exhibit M, together with any other security document now or hereafter granted to secure the Obligations.

 

“Pledgor” means the Trust and any Subsidiary of the Trust (other than Lex LP-1 Trust) that owns, directly or indirectly, any Equity Interests of a Property Subsidiary, except to the extent that such Subsidiary (a) does not own a direct Equity Interest in any Property Subsidiary and (b) such Subsidiary owns a direct or indirect Equity Interest in a Subsidiary which owns Property that is not a Borrowing Base Property.

 

  

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“Post-Default Rate” means, in respect of any principal of any Loan or any other Obligation, a rate per annum equal to the Base Rate as in effect from time to time plus the Applicable Margin plus four percent (4.0%).

 

“Preferred Dividends” means, for any period and without duplication, all Restricted Payments paid during such period on Preferred Equity Interests issued by a Borrower or another Subsidiary.  Preferred Dividends shall not include dividends or distributions (a) paid or payable solely in Equity Interests (other than Mandatorily Redeemable Stock) payable to holders of such class of Equity Interests, (b) paid or payable to a Borrower or another Subsidiary which is a Loan Party, or (c) constituting or resulting in the redemption of Preferred Equity Interests, other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full.

 

“Preferred Equity Interests” means, with respect to any Person, Equity Interests in such Person which are entitled to preference or priority over any other Equity Interest in such Person in respect of the payment of dividends or distribution of assets upon liquidation or both.

 

“Principal Office” means the office of the Agent located at 608 Second Avenue S., 11th Floor, Minneapolis, Minnesota 55402-1916, or any other subsequent office that the Agent shall have specified as the Principal Office by written notice to the Borrower Representative and the Lenders.

 

“Property” means any parcel of real property owned or leased (in whole or in part) or operated by any Borrower, any Subsidiary or any Unconsolidated Affiliate of the Borrowers.

 

“Property Subsidiary” means a Subsidiary, the Equity Interests of which are wholly-owned, directly or indirectly by a Borrower or a Guarantor and that directly owns or leases a Borrowing Base Asset.

 

“Qualified Plan” means a Benefit Arrangement that is intended to be tax-qualified under Section 401(a) of the Internal Revenue Code.

 

“Rating Agency” means any of S&P, Moody’s and Fitch.

 

“Reference Debt” means, (a) prior to the Release Date, (i) all Indebtedness of the Trust or any of its Subsidiaries under this Agreement and the other Loan Documents and under the Revolving Credit Agreement and the other Loan Documents (as defined in the Revolving Credit Agreement) and (ii) all other Indebtedness of the Trust or any of its Subsidiaries secured by a Lien on any of the Collateral or any of the Borrowing Base Assets other than the 2008 Term Loans, and (b) after the Release Date, all Unsecured Indebtedness of the Trust and its Subsidiaries.

 

“Register” has the meaning given that term in Section 12.5(c).

 

  

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 “Regulatory Change” means, with respect to any Lender, any change or new interpretation effective after the Agreement Date in Applicable Law (including without limitation, Regulation D of the Board of Governors of the Federal Reserve System) or the adoption or making after such date of any interpretation, directive or request applying to a class of banks, including such Lender, of or under any Applicable Law (whether or not having the force of law and whether or not failure to comply therewith would be unlawful) by any Governmental Authority or monetary authority charged with the interpretation or administration thereof or compliance by any Lender with any request or directive regarding capital adequacy; provided, that, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in implementation thereof and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Regulatory Change,” regardless of the date enacted, adopted, issued or implemented.

 

“REIT” means a Person qualifying for treatment as a “real estate investment trust” under the Internal Revenue Code.

 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates.

 

“Release Date” means, provided no Default or Event of Default shall then be in existence, the date on which the Trust shall have received an Investment Grade Rating from at least two of the Rating Agencies.

 

“Removal Request” has the meaning given that term in Section 7.16(a).

 

“Requisite Lenders” means, as of any date, (a) Lenders having at least 66-2/3% of the aggregate amount of the Commitments, or (b) if the Commitments have been terminated or reduced to zero, Lenders holding at least 66-2/3% of the principal amount of the aggregate outstanding Loans; provided that (i) in determining such percentage at any given time, all then existing Defaulting Lenders will be disregarded and excluded, and (ii) at all times when two or more Lenders (excluding Defaulting Lenders) are party to this Agreement, the term “Requisite Lenders” shall in no event mean less than two Lenders.

 

“Responsible Officer” means with respect to a Borrower or any other Subsidiary, the chief executive officer and the chief financial officer of such Borrower or such Subsidiary.

 

“Restricted Payment” means: (a) any dividend or other distribution, direct or indirect, on account of any Equity Interest of the Trust or any Subsidiary now or hereafter outstanding, except a dividend payable solely in Equity Interests of identical class to the holders of that class; (b) any redemption, conversion, exchange, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any Equity Interest of the Trust or any Subsidiary now or hereafter outstanding; and (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire any Equity Interests of the Trust or any Subsidiary now or hereafter outstanding.

 

“Revolver Agent” means KeyBank National Association, in its capacity as administrative agent under the Revolving Credit Agreement, together with its successors and permitted assigns as administrative agent under the Revolving Credit Agreement.

  

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“Revolving Credit Agreement” that certain Amended and Restated Credit Agreement dated as of the Agreement Date by and among the Borrowers, the financial institutions from time to time party thereto as “Lenders”, the Revolver Agent and the other parties thereto, which amends and restates the Existing Credit Agreement.

 

“Secured Indebtedness” means, with respect to a Person, (a) all Indebtedness of such Person that is secured in any manner by any Lien on any property, plus (b) such Person’s pro rata share of the Secured Indebtedness of any such Person’s Unconsolidated Affiliates; provided that the 2008 Term Loans shall be deemed Secured Indebtedness hereunder, but provided further that any other loan facilities or replacements of the 2008 Term Loans, if secured by pledges of equity interests in any Subsidiaries of the Trust, shall not be deemed Secured Indebtedness.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, together with all rules and regulations issued thereunder.

 

“Solvent” means, when used with respect to any Person, that (a) the fair value and the fair salable value of its assets (excluding any Indebtedness due from any Affiliate of such Person) are each in excess of the fair valuation of its total liabilities (including all contingent liabilities computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that could reasonably be expected to become an actual and matured liability); (b) such Person is able to pay its debts or other obligations in the ordinary course as they mature; and (c) such Person has capital not unreasonably small to carry on its business and all business in which it proposes to be engaged.

 

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., and its successors.

 

“Subsidiary” means, for any Person, any corporation, partnership or other entity of which at least a majority of the Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other individuals performing similar functions of such corporation, partnership or other entity (without regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts of which are consolidated with those of such Person pursuant to GAAP.  Notwithstanding the foregoing, CTO Associates Limited Partnership shall be a Subsidiary hereunder, with the Borrowing Base Availability of the Property owned by such entity being adjusted in a manner acceptable to the Agent to reflect the Borrowers’ pro rata ownership interest in such entity.

 

“Tangible Net Worth” means, as of a given date, (a) the stockholders’ equity of the Trust and Subsidiaries determined on a consolidated basis, plus (b) accumulated depreciation and amortization, minus (c) the following (to the extent reflected in determining stockholders’ equity of the Trust and its Subsidiaries): (i) the amount of any write-up in the book value of any assets contained in any balance sheet resulting from revaluation thereof or any write-up in excess of the cost of such assets acquired, and (ii) all amounts appearing on the assets side of any such balance sheet for assets which would be classified as intangible assets under GAAP, other than intangibles required to be recorded under Statement of Financial Accounting Standards No. 141, all determined on a consolidated basis.  Notwithstanding the foregoing, (x) amortization of above or below market rents pursuant to Statement of Financial Accounting Standards No. 141 shall not be excluded under either of the preceding clauses (i) or (ii) and (y) the effect of marked-to-market adjustments required to be made under GAAP with respect to assumed indebtedness shall be excluded when determining Tangible Net Worth.

  

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“Taxes” has the meaning given that term in Section 3.12.

 

“Termination Date” means January 11, 2019.

 

“Titled Agents” means each of the Arranger, the Syndication Agent and the Documentation Agent and their respective successors and permitted assigns.

 

“Total Indebtedness” means all Indebtedness of the Trust and all of its Subsidiaries determined on a consolidated basis.

 

“Transfer Authorizer Designation Form” means a form substantially in the form of Exhibit L to be delivered to the Agent pursuant to Section 5.1.(a), as the same may be amended, restated or modified from time to time with the prior written approval of the Agent.

 

“Type” with respect to any Loan, refers to whether such Loan is a LIBOR Loan or Base Rate Loan.

 

“UCC” means the Uniform Commercial Code from time to time in effect in The State of New York; provided, that if by mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest granted hereunder in the any Collateral is governed by the Uniform Commercial Code of a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of provisions hereof relating to such perfection or effect of perfection or non-perfection.

 

“Unconsolidated Affiliate” means, with respect to any Person, any other Person in whom such Person holds an Investment, which Investment is accounted for in the financial statements of such Person on an equity basis of accounting and whose financial results would not be consolidated under GAAP with the financial results of such Person on the consolidated financial statements of such Person.

 

“Unimproved Land” means land on which no development (other than paving or other improvements that are not material and are temporary in nature) has occurred and for which no construction is planned in the following 12 months.

 

“Unsecured Indebtedness” means any Indebtedness which is not Secured Indebtedness.

 

“Value” means (a) with respect to any Property in the Borrowing Base Assets Pool which has been owned for at least one fiscal quarter, (1) the Net Operating Income of such Property for the fiscal quarter most recently ended, times (2) 4 divided by (3) the Capitalization Rate and (b) with respect to any other Property in the Borrowing Base Assets Pool, the value of such Property based on cost determined in accordance with GAAP.

  

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“Wells Fargo” means Wells Fargo Bank, National Association, and its successors and assigns.

 

“Wholly Owned Subsidiary” means any Subsidiary of a Person in respect of which all of the equity securities or other ownership interests (other than, in the case of a corporation, directors’ qualifying shares) are at the time directly or indirectly owned or controlled by such Person or one or more other Subsidiaries of such Person or by such Person and one or more other Subsidiaries of such Person.

 

	
Section 1.2.

	
General; References to Times.

 

Unless otherwise indicated, all accounting terms, ratios and measurements shall be interpreted or determined in accordance with GAAP; provided that, if at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrowers or the Requisite Lenders shall so request, the Agent, the Lenders and the Borrowers shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Requisite Lenders); provided further that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrowers shall provide to the Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.  References in this Agreement to “Sections”, “Articles”, “Exhibits” and “Schedules” are to sections, articles, exhibits and schedules herein and hereto unless otherwise indicated.  References in this Agreement to any document, instrument or agreement (a) shall include all exhibits, schedules and other attachments thereto, (b) shall include all documents, instruments or agreements issued or executed in replacement thereof, to the extent permitted hereby and (c) shall mean such document, instrument or agreement, or replacement or predecessor thereto, as amended, supplemented, restated or otherwise modified as of the date of this Agreement and from time to time thereafter to the extent not prohibited hereby and in effect at any given time.  Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter.  Unless explicitly set forth to the contrary, a reference to “Subsidiary” means a Subsidiary of the Trust or a Subsidiary of such Subsidiary and a reference to an “Affiliate” means a reference to an Affiliate of the Trust.  Titles and captions of Articles, Sections, subsections and clauses in this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement.  Unless otherwise indicated, all references to time are references to New York, New York time.

 

	
Section 1.3.

	
Financial Attributes of Non-Wholly Owned Subsidiaries.

 

When determining the Trust’s compliance with any financial covenant contained in any of the Loan Documents, only the Trust’s pro rata share of the financial attributes of a Subsidiary that is not a Wholly Owned Subsidiary shall be included.

 

  

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ARTICLE II. - CREDIT FACILITY

 

	
Section 2.1.

	
Loans.

 

(a)           Making of Loans.  Subject to the terms and conditions set forth in this Agreement, including without limitation, Section 2.14., each Lender severally and not jointly agrees to make Loans to the Borrowers during the period from and including the Effective Date to but excluding the Availability Termination Date, in an aggregate principal amount at any one time outstanding up to, but not exceeding, such Lender’s Commitment.  Each borrowing of Loans shall be in an aggregate minimum amount of $25,000,000 and integral multiples of $500,000 in excess thereof.   Notwithstanding the preceding sentence but subject to Section 2.14., a borrowing of Loans may be in the aggregate amount of the unused Commitments.  Upon a Lender’s funding of a Loan, such Lender’s Commitment shall be permanently reduced by the principal amount of such Loan.  Once repaid, the principal amount of a Loan may not be reborrowed.

(b)           Requests for Loans. Not later than 11:00 a.m. at least 1 Business Day prior to a borrowing of Loans that are to be Base Rate Loans and not later than 11:00 a.m. at least 3 Business Days prior to a borrowing of Loans that are to be LIBOR Loans, the Borrower Representative shall deliver to the Agent a Notice of Borrowing together with a current Borrowing Base Certificate.  Each Notice of Borrowing shall specify the name of the Borrower requesting such Loans, the aggregate principal amount of the Loans to be borrowed, the date such Loans are to be borrowed (which must be a Business Day), the Type of the requested Loans, and if such Loans are to be LIBOR Loans, the initial Interest Period for such Loans.  Each Notice of Borrowing shall be irrevocable once given and binding on the Borrowers.  Prior to delivering a Notice of Borrowing, the Borrower Representative may (without specifying whether a Loan will be a Base Rate Loan or a LIBOR Loan) request that the Agent provide the Borrower Representative with the most recent LIBOR available to the Agent.  The Agent shall provide such quoted rate to the Borrower Representative on the date of such request or as soon as possible thereafter.  No more than 4 Notices of Borrowings may be submitted on behalf of the Borrowers prior to the Availability Termination Date.

(c)           Funding of Loans.  Promptly after receipt of a Notice of Borrowing under the immediately preceding subsection, the Agent shall notify each Lender of the proposed borrowing.  Each Lender shall deposit an amount equal to the Loan to be made by such Lender to the applicable Borrower with the Agent at the Principal Office, in immediately available funds not later than 12:00 p.m. on the date of such proposed Loans.  Subject to fulfillment of all applicable conditions set forth herein, the Agent shall make available to the applicable Borrower in the account specified in the Transfer Authorizer Designation Form, not later than 3:00 p.m. on the date of the requested borrowing of Loans, the proceeds of such amounts received by the Agent.

 

  

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(d)           Assumptions Regarding Funding by Lenders.  With respect to Loans to be made after the Effective Date, unless the Agent shall have been notified by any Lender that such Lender will not make available to the Agent a Loan to be made by such Lender in connection with any borrowing, the Agent may assume that such Lender will make the proceeds of such Loan available to the Agent in accordance with this Section, and the Agent may (but shall not be obligated to), in reliance upon such assumption, make available to the applicable Borrower the amount of such Loan to be provided by such Lender.  In such event, if such Lender does not make available to the Agent the proceeds of such Loan, then such Lender and the Borrowers severally agree to pay to the Agent on demand the amount of such Loan with interest thereon, for each day from and including the date such Loan is made available to a Borrower but excluding the date of payment to the Agent, at (i) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation and (ii) in the case of a payment to be made by a Borrower, the interest rate applicable to such Loan.  If a Borrower and such Lender shall pay the amount of such interest to the Agent for the same or overlapping period, the Agent shall promptly remit to the applicable Borrower the amount of such interest paid by such Borrower for such period.  If such Lender pays to the Agent the amount of such Loan, the amount so paid shall constitute such Lender’s Loan included in the borrowing.  Any payment by a Borrower shall be without prejudice to any claim any Borrower may have against a Lender that shall have failed to make available the proceeds of a Loan to be made by such Lender.

	
Section 2.2.

	
[Reserved].

 

	
Section 2.3.

	
[Reserved].

 

	
Section 2.4.

	
Rates and Payment of Interest on Loans.

 

(a)           Rates.  The Borrowers promise to pay to the Agent for the account of each Lender interest on the unpaid principal amount of each Loan made by such Lender for the period from and including the date of the making of such Loan to but excluding the date such Loan shall be paid in full, at the following per annum rates:

 

(i)           during such periods as such Loan is a Base Rate Loan, at the Base Rate (as in effect from time to time) plus the Applicable Margin; and

 

(ii)           during such periods as such Loan is a LIBOR Loan, at LIBOR for such Loan for the Interest Period therefor plus the Applicable Margin.

 

Notwithstanding the foregoing, during the continuance of an Event of Default, the Borrowers shall pay to the Agent for the account of each Lender interest at the Post-Default Rate on the outstanding principal amount of any Loan made by such Lender, and on any other amount payable by the Borrowers hereunder or under the Notes held by such Lender to or for the account of such Lender (including without limitation, accrued but unpaid interest to the extent permitted under Applicable Law).

 

(b)           Payment of Interest. All accrued and unpaid interest on the outstanding principal amount of each Loan shall be payable (i) monthly in arrears on the first day of each month, commencing with the first full calendar month occurring after the Effective Date, provided if such day is not a Business Day, interest shall be due on the next succeeding Business Day and (ii) on any date on which the principal balance of such Loan is due and payable in full (whether at maturity, due to acceleration or otherwise).  Interest payable at the Post-Default Rate shall be payable from time to time on demand.  All determinations by the Agent of an interest rate hereunder shall be conclusive and binding on the Lenders and the Borrowers for all purposes, absent manifest error.

 

  

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(c)           Borrower Information Used to Determine Applicable Interest Rates.  The parties understand that the applicable interest rate for the Obligations and certain fees set forth herein may be determined and/or adjusted from time to time based upon certain financial ratios and/or other information to be provided or certified to the Lenders by any Borrower (the “Borrower Information”).  If it is subsequently determined that any such Borrower Information was incorrect (for whatever reason, including without limitation because of a subsequent restatement of earnings by any Borrower) at the time it was delivered to the Agent, and if the applicable interest rate or fees calculated for any period were lower than they should have been had the correct information been timely provided, then, such interest rate and such fees for such period shall be automatically recalculated using correct Borrower Information.  The Agent shall promptly notify the Borrower Representative in writing of any additional interest and fees due because of such recalculation, and the Borrowers shall pay such additional interest or fees due to the Agent, for the account of each Lender, within 5 Business Days of receipt of such written notice.  Any recalculation of interest or fees required by this provision shall survive the termination of this Agreement, and this provision shall not in any way limit any of the Agent’s or any Lender’s other rights under this Agreement or any other Loan Document.

 

	
Section 2.5.

	
Number of Interest Periods.

 

There may be no more than 4 different Interest Periods for LIBOR Loans outstanding at the same time.

 

	
Section 2.6.

	
Repayment of Loans.

 

The Borrowers shall repay the entire outstanding principal amount of, and all accrued but unpaid interest on, the Loans on the Termination Date.

 

	
Section 2.7.

	
Prepayments.

 

(a)           Optional.  Except as otherwise provided in the immediately following subsection (c) and subject to Section 4.4, the Borrowers may prepay any Loan at any time without premium or penalty, provided that such prepayments shall be applied in such a manner as to limit, to the extent possible, the amounts due under Section 4.4.  The Borrowers shall give the Agent at least three Business Days’ prior written notice of the prepayment of any Loan.

 

(b)           Mandatory.  If at any time the aggregate principal amount of all outstanding Loans exceeds the Availability, the Borrowers shall promptly (and in any event, within 2 Business Days after notice thereof from the Agent), eliminate such excess by prepaying the Loans (to the extent permitted to do so) or other Reference Debt.  Amounts paid in respect of the Loans under the preceding sentence shall be applied to pay all amounts of principal outstanding on the Loans pro rata in accordance with Section 3.2.  If the Borrowers are required to pay any Loans by reason of this Section (x) the Borrowers shall pay any amounts due under the immediately following subsection (c) as if such payments were voluntary prepayments and (y) and if such Loans are LIBOR Loans, the Borrower shall pay all amounts, if any, due under Section 4.4.

 

  

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(c)           Limitation on Voluntary Prepayments; Prepayment Premium.  During the period from the Effective Date to and including January 12, 2013, the Borrowers may not prepay the Loans pursuant to the immediately preceding subsection (a).  During the periods set forth below, the Borrowers may only prepay the Loans, in whole or in part, at the prices (expressed as percentages of the principal amount of the Loans to be prepaid) set forth below, plus accrued and unpaid interest, if any, to the date of prepayment:

 

	
Period

	 	
Percentage

	 
	
January 13, 2013 to and including January 12, 2014

	 	 	103	%
	
January 13, 2014 to and including January 12, 2015

	 	 	102	%
	
January 13, 2015 to and including January 12, 2016

	 	 	101	%
	
After January 12, 2016

	 	 	100	%

The Borrowers and the Lenders acknowledge and agree that the amount payable by the Borrowers in connection with the prepayment of the Loans as provided above, is a reasonable calculation of the Lenders’ lost profits in view of the difficulties and impracticality of determining actual damages resulting from the prepayment of the Loans.

	
Section 2.8.

	
Continuation.

 

So long as no Default or Event of Default shall exist, the Borrowers may on any Business Day, with respect to any LIBOR Loan, elect to maintain such LIBOR Loan or any portion thereof as a LIBOR Loan by selecting a new Interest Period for such LIBOR Loan.  Each Continuation of a LIBOR Loan shall be in an aggregate minimum amount of $500,000 and integral multiples of $500,000 in excess of that amount, and each new Interest Period selected under this Section shall commence on the last day of the immediately preceding Interest Period.  Each selection of a new Interest Period shall be made by the Borrower Representative giving to the Agent a Notice of Continuation not later than 11:00 a.m. on the third Business Day prior to the date of any such Continuation.  Such notice by the Borrower Representative of a Continuation shall be by telecopy, electronic mail or other similar form of communication in the form of a Notice of Continuation, specifying (a) the proposed date of such Continuation, (b) the LIBOR Loans and portions thereof subject to such Continuation and (c) the duration of the selected Interest Period, all of which shall be specified in such manner as is necessary to comply with all limitations on Loans outstanding hereunder.  Each Notice of Continuation shall be irrevocable by and binding on the Borrowers once given.  Promptly after receipt of a Notice of Continuation, the Agent shall notify each Lender of the proposed Continuation.  If the Borrower Representative shall fail to select in a timely manner a new Interest Period for any LIBOR Loan in accordance with this Section, or if a Default or Event of Default shall exist, such Loan will automatically, on the last day of the current Interest Period therefor, Convert into a Base Rate Loan notwithstanding the first sentence of Section 2.9. or failure of the Borrowers to comply with any of the terms of such Section.

 

  

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Section 2.9.

	
Conversion.

 

The Borrowers may on any Business Day, upon the Borrower Representative’s giving of a Notice of Conversion to the Agent by telecopy, electronic mail or other similar form of communication, Convert all or a portion of a Loan of one Type into a Loan of another Type; provided, however, a Base Rate Loan may not be Converted into a LIBOR Loan if a Default or Event of Default exists.  Each Conversion of Base Rate Loans into LIBOR Loans shall be in an aggregate minimum amount of $500,000 and integral multiples of $500,000 in excess of that amount.  Each such Notice of Conversion shall be given not later than 11:00 a.m. 1 Business Day prior to the date of any proposed Conversion into Base Rate Loans and 3 Business Days prior to the date of any proposed Conversion into LIBOR Loans.  Promptly after receipt of a Notice of Conversion, the Agent shall notify each Lender of the proposed Conversion.  Subject to the restrictions specified above, each Notice of Conversion shall be by telecopy, electronic mail or other similar form of communication in the form of a Notice of Conversion specifying (a) the requested date of such Conversion, (b) the Type of Loan to be Converted, (c) the portion of such Type of Loan to be Converted, (d) the Type of Loan such Loan is to be Converted into and (e) if such Conversion is into a LIBOR Loan, the requested duration of the Interest Period of such Loan.  Each Notice of Conversion shall be irrevocable by and binding on the Borrowers once given.

 

	
Section 2.10.

	
Notes.

 

(a)           Notes.  The Loans made by each Lender shall, in addition to this Agreement, also be evidenced by a promissory note of the Borrowers substantially in the form of Exhibit E (each a “Note”), payable to the order of such Lender in a principal amount equal to the amount of its Commitment as originally in effect and otherwise duly completed.

(b)           Records.  The date, amount, interest rate, Type and duration of Interest Periods (if applicable) of each Loan made by each Lender to any Borrower, and each payment made on account of the principal thereof, shall be recorded by such Lender on its books and such entries shall be binding on the Borrowers absent manifest error; provided, however, that (i) the failure of a Lender to make any such record shall not affect the obligations of any Borrower under any of the Loan Documents and (ii) if there is a discrepancy between such records of a Lender and the records maintained by the Agent pursuant to Section 3.10. and 12.5.(c), in the absence of manifest error, the records maintained by the Agent pursuant to Section 3.10. and 12.5.(c) shall be controlling.

(c)           Lost, Stolen, Destroyed or Mutilated Notes.  Upon receipt by the Borrower Representative of (i) written notice from a Lender that the Note of such Lender has been lost, stolen, destroyed or mutilated, and (ii)(A) in the case of loss, theft or destruction, an unsecured agreement of indemnity from such Lender in form reasonably satisfactory to the Borrowers, or (B) in the case of mutilation, upon surrender and cancellation of such Note, the Borrowers shall at their own expense execute and deliver to such Lender a new Note dated the date of such lost, stolen, destroyed or mutilated Note.

 

  

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Section 2.11.

	
[Reserved].

 

	
Section 2.12.

	
[Reserved].

 

	
Section 2.13.

	
[Reserved].

 

	
Section 2.14.

	
Amount Limitations.

 

Notwithstanding any other term of this Agreement or any other Loan Document, no Lender shall be required to make a Loan if (a) the amount of such Loan would exceed such Lender’s Commitment or (b) the aggregate outstanding principal amount of Loans would exceed the Availability.

 

Section 2.15.         Additional Commitments and Loans.

 

The Borrowers shall have the right at any time and from time to time (a) prior to the Availability Termination Date, but only so long as the existing Commitments have been fully utilized, and (b) during the period beginning on the Availability Termination Date to but excluding the Termination Date, to request additional loans (“Additional Loans”) by the Borrower Representative providing written notice to the Agent, which notice shall be irrevocable once given; provided, however, that after giving effect to any such Additional Loans the aggregate outstanding principal amount of the Loans shall not exceed $400,000,000.  Each such borrowing of Addition Loans must be an aggregate minimum amount of $50,000,000 and integral multiples of $10,000,000 in excess thereof.  The Agent, in consultation with the Borrower Representative, shall manage all aspects of the syndication of such Additional Loans, including decisions as to the selection of the existing Lenders and/or other banks, financial institutions and other institutional lenders to be approached with respect to any such Additional Loans and the allocations of the Additional Loans among such existing Lenders and/or other banks, financial institutions and other institutional lenders.  No Lender shall be obligated in any way whatsoever to make an Additional Loan or increase the principal amount of its Loans, and any new Lender becoming a party to this Agreement in connection with any such requested Additional Loans must be an Eligible Assignee.  The making of Additional Loans is subject to the following conditions precedent:  (x) no Default or Event of Default shall be in existence on the date such Additional Loans are to be made, (y) the representations and warranties made or deemed made by the Borrowers and other Loan Parties in all Loan Document to which such Loan Party is a party shall be true and correct in all material respects on the date such Additional Loans are to be made except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances specifically and expressly permitted hereunder, and (z) the Agent shall have received each of the following, in form and substance satisfactory to the Agent: (i) if not previously delivered to the Agent, copies certified by the Secretary or Assistant Secretary of the applicable Loan Party of (A) all corporate and other necessary action taken by the Borrowers to authorize such Additional Loans and (B) all corporate and other necessary action taken by each Guarantor authorizing the guaranty of such Additional Loans; (ii) an opinion of counsel to the Borrower and the Guarantors, and addressed to the Agent and the Lenders covering such matters as reasonably requested by the Agent, and (iii) new Notes executed by the Borrowers, payable to any new Lenders and replacement Notes executed by the Borrower, payable to any existing Lenders increasing the principal amount of their Loans, in the principal amount of such Lender’s Loans at the time of the effectiveness of the making of the Additional Loans.  In connection with any Additional Loans being made pursuant to this Section any Lender becoming a party hereto shall execute such documents and agreements as the Agent may reasonably request.

 

  

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Section 2.16.

	
Joint and Several Liability.

 

(a)           The obligations of the Borrowers hereunder and under the other Loan Documents to which any Borrower is a party shall be joint and several, and accordingly, each Borrower confirms that it is liable for the full amount of the “Obligations,” regardless of whether incurred by such Borrower or any other Borrower, and all of the other obligations and liabilities of the other Borrowers hereunder and under the other Loan Documents.

 

(b)           Each of the Borrowers represents and warrants to the Agent and the Lenders that the Borrowers, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Lenders through their collective efforts.

 

(c)           None of the Lenders or the Agent shall be obligated or required before enforcing any Loan Document against a Borrower: (a) to pursue any right or remedy any of them may have against any other Borrower, any Guarantor or any other Person or commence any suit or other proceeding against any other Borrower, any Guarantor or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of any other Borrower, any Guarantor or any other Person; or (c) to make demand of any other Borrower, any Guarantor or any other Person or to enforce or seek to enforce or realize upon any collateral security held by the Lenders or the Agent which may secure any of the Obligations.

 

(d)           The Lenders and the Agent may, at any time and from time to time, without the consent of, or notice to, any Borrower, and without discharging any Borrower from its obligations hereunder or under any other Loan Document, take any of the following actions: (i)  release or otherwise deal with all, or any part, of any Collateral securing any of the Obligations and in which any other Borrower has rights; (ii) release any other Borrower, any Guarantor or any other Person liable in any manner for the payment or collection of the Obligations; (iii) exercise, or refrain from exercising, any rights against any other Borrower, any Guarantor or any other Person; and (iv) apply any sum, by whomsoever paid or however realized, to the Obligations in such order as the Lenders shall elect.

 

  

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(e)           It is the intent of each Borrower, the Agent and the Lenders that in any proceeding of the types described in Sections 10.1(f) or 10.1(g), a Borrower’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Borrower hereunder (or any other obligations of such Borrower to the Agent and the Lenders) to be avoidable or unenforceable against such Borrower in such proceeding as a result of Applicable Law, including without limitation, (i) Section 548 of the Bankruptcy Code and (ii) any state fraudulent transfer or fraudulent conveyance act or statute applied in such proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise.  The Applicable Laws under which the possible avoidance or unenforceability of the obligations of such Borrower hereunder (or any other obligations of such Borrower to the Agent and the Lenders) shall be determined in any such proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the obligations of any Borrower hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Obligations for which such Borrower shall be liable hereunder shall be reduced to that amount which, as of the time any of the Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of such Borrower hereunder (or any other obligations of such Borrower to the Agent and the Lenders), to be subject to avoidance under the Avoidance Provisions.  This subsection is intended solely to preserve the rights of the Agent and the Lenders hereunder to the maximum extent that would not cause the obligations of any Borrower hereunder to be subject to avoidance under the Avoidance Provisions, and no Borrower or any other Person shall have any right or claim under this Section as against the Agent and the Lenders that would not otherwise be available to such Person under the Avoidance Provisions.

 

(f)           Each Borrower assumes all responsibility for being and keeping itself informed of the financial condition of the other Borrowers and the Guarantors, and of all other circumstances bearing upon the risk of nonpayment of any of the Obligations and the nature, scope and extent of the risks that such Borrower assumes and incurs hereunder, and agrees that none of the Agent or the Lenders shall have any duty whatsoever to advise any Borrower of information regarding such circumstances or risks.

 

	
Section 2.17.

	
Borrower Representative.

 

Each of the Borrowers hereby appoints the Borrower Representative to act as its exclusive agent for all purposes under the Loan Documents (including, without limitation, with respect to all matters related to the borrowing and repayment of Loans as described in Articles II and III).  Each of the Borrowers acknowledges and agrees that (a) the Borrower Representative may execute such documents on behalf of any of the Borrowers as the Borrower Representative deems appropriate in its sole discretion and each Borrower shall be bound by and obligated by all of the terms of any such document executed by the Borrower Representative on its behalf, (b) any notice or other communication delivered by the Agent or any Lender hereunder to the Borrower Representative shall be deemed to have been delivered to each of the Borrowers and (c) the Agent and each of the Lenders shall accept (and shall be permitted to rely on) any document or agreement executed by the Borrower Representative on behalf of the Borrowers (or any of them).  The Borrowers must act through the Borrower Representative for all purposes under this Agreement and the other Loan Documents.  Notwithstanding anything contained herein to the contrary, to the extent any provision in this Agreement requires any Borrower to interact in any manner with the Agent or the Lenders, such Borrower shall do so only through the Borrower Representative.

  

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Section 2.18.         Security Interests in Collateral.

 

(a)           To secure their Obligations under this Agreement and the other Loan Documents, the Borrowers and each other Loan Party have granted to the Agent, for its benefit and the benefit of the other Lenders, a first-priority security interest in all of the Collateral pursuant to the Pledge Agreement together with such other security documents as may now or hereafter be executed to secure the Obligations.  Without limiting the foregoing, but subject to the terms of the Intercreditor Agreement, at the option of the Agent, any applicable Property Subsidiary shall grant to the Agent, on behalf of the Lenders, a mortgage or deed of trust interest in and to said Borrowing Base Asset to secure the Obligations and shall deliver to the Agent such diligence items in connection therewith as the Agent may request in order for the Agent and the Lenders to comply with Applicable Law; provided, however, in the event of a Permitted Financing with respect to such Borrowing Base Asset, or other refinance with the consent of the Requisite Lenders of the Borrowing Base Asset, the Agent shall release said mortgage or deed of trust to the refinanced loan subject to the payment of any payment required under Section 2.7(b) above relating thereto.  The Borrowers, the Agent and the Lenders acknowledge and agree that the Agent shall be entering into the Intercreditor Agreement, and the exercise by the Agent of its rights and remedies under the Loan Documents with respect to the Collateral shall be subject to the terms of the Intercreditor Agreement.

 

(b)           Upon the occurrence of the Release Date, the Agent shall and is hereby authorized by the Lenders to release the Collateral and take all such action as may be reasonably required in order to terminate the Liens in the Collateral.

 

Section 2.19.         Funds Transfer Disbursements.

 

(a)           Generally.  The Borrowers hereby authorize the Agent to disburse the proceeds of any Loan made by the Lenders or any of their Affiliates pursuant to the Loan Documents as requested by an authorized representative of a Borrower to any of the accounts designated in the Transfer Authorizer Designation Form.  The Borrowers agree to be bound by any transfer request: (i) authorized or transmitted by the Borrower Representative or any other Borrower; or (ii) made in the name of any Borrower and accepted by the Agent in good faith and in compliance with these transfer instructions, even if not properly authorized by any Borrower.  The Borrowers further agree and acknowledge that the Agent may rely solely on any bank routing number or identifying bank account number or name provided by or on behalf of a Borrower to effect a wire or funds transfer even if the information provided by or on behalf of such Borrower identifies a different bank or account holder than named by such Borrower.  The Agent is not obligated or required in any way to take any actions to detect errors in information provided by the Borrowers.  If the Agent takes any actions in an attempt to detect errors in the transmission or content of transfer requests or takes any actions in an attempt to detect unauthorized funds transfer requests, the Borrowers agree that no matter how many times the Agent takes these actions the Agent will not in any situation be liable for failing to take or correctly perform these actions in the future and such actions shall not become any part of the transfer disbursement procedures authorized under this provision, the Loan Documents, or any agreement among the Agent and the Borrower.  The Borrowers agree to notify the Agent of any errors in the transfer of any funds or of any unauthorized or improperly authorized transfer requests within fourteen (14) days after the Agent’s confirmation to the Borrower of such transfer.

(b)           Funds Transfer.  The Agent will, in its sole discretion, determine the funds transfer system and the means by which each transfer will be made.  The Agent may delay or refuse to accept a funds transfer request if the transfer would: (i) violate the terms of this authorization, (ii) require use of a bank unacceptable to the Agent (in its reasonable discretion) or prohibited by any Governmental Authority, (iii) cause the Agent or any Lender to violate any Federal Reserve or other regulatory risk control program or guideline or (iv) otherwise cause the Agent or any Lender to violate any Applicable Law or regulation.

  

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(c)           Limitation of Liability.  Neither the Agent nor any Lender shall be liable to the Borrowers or any other parties for (i) errors, acts or failures to act of others, including other entities, banks, communications carriers or clearinghouses, through which the Borrowers’ transfers may be made or information received or transmitted, and no such entity shall be deemed an agent of the Agent or any Lender, (ii) any loss, liability or delay caused by fires, earthquakes, wars, civil disturbances, power surges or failures, acts of government, labor disputes, failures in communications networks, legal constraints or other events beyond Agent’s or any Lender’s control, or (iii) any special, consequential, indirect or punitive damages, whether or not (x) any claim for these damages is based on tort or contract or (y) the Agent, any Lender or the Borrowers knew or should have known the likelihood of these damages in any situation.  Neither the Agent nor any Lender makes any representations or warranties other than those expressly made in this Agreement.

 

ARTICLE III. - PAYMENTS, FEES AND OTHER GENERAL PROVISIONS

 

	
Section 3.1.

	
Payments.

 

(a)           Payments by Borrowers.  Except to the extent otherwise provided herein, all payments of principal, interest, Fees and other amounts to be made by the Borrowers under this Agreement or any other Loan Document shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to the Agent at its Principal Office, not later than 1:00 p.m. on the date on which such payment shall become due (each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day).  Subject to Section 10.4, the Borrowers shall, at the time of making each payment under this Agreement or any other Loan Document, specify to the Agent the amounts payable by the Borrowers hereunder to which such payment is to be applied.  Each payment received by the Agent for the account of a Lender under this Agreement or any Note shall be paid to such Lender by wire transfer of immediately available funds in accordance with the wiring instructions provided by such Lender to the Agent from time to time at the applicable Lending Office of such Lender.  If the Agent fails to pay such amount to a Lender within one Business Day of receipt of such amount, the Agent shall pay interest on such amount until paid at a rate per annum equal to the Federal Funds Rate from time to time in effect.  If the due date of any payment under this Agreement or any other Loan Document would otherwise fall on a day which is not a Business Day such date shall be extended to the next succeeding Business Day and interest shall be payable for the period of such extension.

 

(b)           Presumptions Regarding Payments by Borrowers.  Unless the Agent shall have received notice from the Borrower Representative prior to the date on which any payment is due to the Agent for the account of the Lenders hereunder that the Borrowers will not make such payment, the Agent may assume that a Borrower has made such payment on such date in accordance herewith and may (but shall not be obligated to), in reliance upon such assumption, distribute to the Lenders the amount due.  In such event, if no Borrower has in fact made such payment, then each of the Lenders severally agrees to repay to the Agent on demand that amount so distributed to such Lender, with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Agent, at the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation.

 

  

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Section 3.2.

	
Pro Rata Treatment.

 

Except to the extent otherwise provided herein: (a) each borrowing from the Lenders under Section 2.1 shall be made by the Lenders pro rata according to the amounts of their respective Commitments; (b) each payment or prepayment of principal of Loans shall be made for the account of the Lenders pro rata in accordance with the respective unpaid principal amounts of the Loans held by them, provided that, subject to Section 3.11., if immediately prior to giving effect to any such payment in respect of any Loans the outstanding principal amount of the Loans shall not be held by the Lenders pro rata in accordance with their respective Commitments in effect at the time such Loans were made, then such payment shall be applied to the Loans in such manner as shall result, as nearly as is practicable, in the outstanding principal amount of the Loans being held by the Lenders pro rata in accordance with their respective Commitments; (c) each payment of interest on Loans by the Borrowers shall be made for the account of the Lenders pro rata in accordance with the amounts of interest on such Loans then due and payable to the respective Lenders; and (d) the making, Conversion and Continuation of Loans of a particular Type (other than Conversions provided for by Section 4.6) shall be made pro rata among the Lenders according to the amounts of their respective Commitments (in the case of making of Loans) or their respective Loans (in the case of Conversions and Continuations of Loans) and the then current Interest Period for each Lender’s portion of each Loan of such Type shall be coterminous.

 

	
Section 3.3.

	
Sharing of Payments, Etc.

 

If a Lender shall obtain payment of any principal of, or interest on, any Loan made by it to a Borrower under this Agreement, or shall obtain payment on any other Obligation owing by the Borrowers or any other Loan Party through the exercise of any right of set-off, banker’s lien or counterclaim or similar right or otherwise or through voluntary prepayments directly to a Lender or other payments made by or on behalf of any Borrower or any other Loan Party to a Lender not in accordance with the terms of this Agreement and such payment should be distributed to the Lenders pro rata in accordance with Section 3.2 or Section 10.4, as applicable, such Lender shall promptly purchase from the other Lenders participations in (or, if and to the extent specified by such Lender, direct interests in) the Loans made by the other Lenders or other Obligations owed to such other Lenders in such amounts, and make such other adjustments from time to time as shall be equitable, to the end that all the Lenders shall share the benefit of such payment (net of any reasonable expenses which may be incurred by such Lender in obtaining or preserving such benefit) pro rata in accordance with Section 3.2 or Section 10.4, as applicable.  To such end, all the Lenders shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise) if such payment is rescinded or must otherwise be restored.  The Borrowers agree that any Lender so purchasing a participation (or direct interest) in the Loans or other Obligations owed to such other Lenders may exercise all rights of set-off, banker’s lien, counterclaim or similar rights with respect to such participation as fully as if such Lender were a direct holder of Loans in the amount of such participation.  Nothing contained herein shall require any Lender to exercise any such right or shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or obligation of the Borrowers.

 

  

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Section 3.4.

	
Several Obligations.

 

No Lender shall be responsible for the failure of any other Lender to make a Loan or to perform any other obligation to be made or performed by such other Lender hereunder, and the failure of any Lender to make a Loan or to perform any other obligation to be made or performed by it hereunder shall not relieve the obligation of any other Lender to make any Loan or to perform any other obligation to be made or performed by such other Lender.

 

	
Section 3.5.

	
[Reserved].

 

	
Section 3.6.

	
Fees.

 

(a)           Unused Fees. During the period from the Effective Date to but excluding the Availability Termination Date, the Borrowers agree to pay to the Agent for the account of the Lenders an unused facility fee equal to (i) the sum of the daily amount of the aggregate amount of the Commitments multiplied by (ii) 0.50% per annum.  Such fee shall be computed on a daily basis and payable monthly in arrears on the first day of each month during the term of this Agreement commencing with the first full calendar month occurring after the Effective Date, and on the Availability Termination Date or any earlier date of termination of the Commitments or reduction of the Commitments to zero.

 

(b)           Administrative and Other Fees.  The Borrowers agree to pay the administrative and other fees of the Agent pursuant to the Fee Letter and as may otherwise be agreed to in writing by the Borrowers and the Agent from time to time.

 

	
Section 3.7.

	
Computations.

 

Unless otherwise expressly set forth herein, any accrued interest on any Loan, any Fees or any other Obligations due hereunder shall be computed on the basis of a year of 360 days and the actual number of days elapsed; provided, however, any accrued interest on any Base Rate Loan shall be computed on the basis of a year of 365 or 366 days, as applicable, and the actual number of days elapsed.

 

	
Section 3.8.

	
Usury.

 

In no event shall the amount of interest due or payable on the Loans or other Obligations exceed the maximum rate of interest allowed by Applicable Law and, if any such payment is paid by any Borrower or any other Loan Party or received by any Lender, then such excess sum shall be credited as a payment of principal, unless the Borrower Representative shall notify the respective Lender in writing that the Borrowers elect to have such excess sum returned to them forthwith.  It is the express intent of the parties hereto that the Borrowers not pay and the Lenders not receive, directly or indirectly, in any manner whatsoever, interest in excess of that which may be lawfully paid by the Borrowers under Applicable Law.

 

  

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Section 3.9.

	
Agreement Regarding Interest and Charges.

 

The parties hereto hereby agree and stipulate that the only charge imposed upon the Borrowers for the use of money in connection with this Agreement is and shall be the interest specifically described in Section 2.4(a).  Notwithstanding the foregoing, the parties hereto further agree and stipulate that all agency fees, syndication fees, facility fees, closing fees, prepayment premiums, underwriting fees, default charges, late charges, funding or “breakage” charges, increased cost charges, attorneys’ fees and reimbursement for costs and expenses paid by the Agent or any Lender to third parties or for damages incurred by the Agent or any Lender, in each case in connection with the transactions contemplated by this Agreement and the other Loan Documents, are charges made to compensate the Agent or any such Lender for underwriting or administrative services and costs or losses performed or incurred, and to be performed or incurred, by the Agent and the Lenders in connection with this Agreement and shall under no circumstances be deemed to be charges for the use of money.  All charges other than charges for the use of money shall be fully earned and nonrefundable when due.

 

	
Section 3.10.

	
Statements of Account.

 

The Agent will account to the Borrowers monthly with a statement of Loans, accrued interest and Fees, charges and payments made pursuant to this Agreement and the other Loan Documents, and such account rendered by the Agent shall be deemed conclusive upon the Borrowers absent manifest error.  The failure of the Agent to deliver such a statement of accounts shall not relieve or discharge the Borrowers from any of their obligations hereunder.

 

	
Section 3.11.

	
Defaulting Lenders.

 

Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

(a)           Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Requisite Lenders.

 

  

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(b)           Defaulting Lender Waterfall.  Any payment of principal, interest, Fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article X or otherwise) or received by the Agent from a Defaulting Lender pursuant to Section 12.3. 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 Lender to the Agent hereunder; second, as the Borrower Representative may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; third, if so determined by the Agent and the Borrower Representative, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement; fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrowers as a result of any judgment of a court of competent jurisdiction obtained by the Borrowers against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Article V were satisfied or waived, such payment shall be applied solely to pay the Loans of all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with their respective Commitment Percentages.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this subsection shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

(c)           Certain Fees.  No Defaulting Lender shall be entitled to receive any Fee payable under Section 3.6.(a) for any period during which that Lender is a Defaulting Lender (and the Borrowers shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

(d)           Defaulting Lender Cure.  If the Borrower Representative and the Agent agree in writing that a Lender is no longer a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with their respective Commitment Percentages, whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to Fees accrued or payments made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

(e)           Purchase of Defaulting Lender’s Commitment.  During any period prior to the Availability Termination Date that a Lender is a Defaulting Lender, the Borrowers may, by the Borrower Representative giving written notice thereof to the Agent, such Defaulting Lender and the other Lenders, demand that such Defaulting Lender assign its Commitment to an Eligible Assignee subject to and in accordance with the provisions of Section 12.5.(d).  No party hereto shall have any obligation whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee.  In addition, any Lender who is not a Defaulting Lender may, but shall not be obligated, in its sole discretion, to acquire the face amount of all or a portion of such Defaulting Lender’s Commitment via an assignment subject to and in accordance with the provisions of Section 12.5.(d).  In connection with any such assignment, such Defaulting Lender shall promptly execute all documents reasonably requested to effect such assignment, including an appropriate Assignment and Assumption and, notwithstanding Section 12.5.(d)., shall pay to the Agent an assignment fee in the amount of $7,500.  The exercise by the Borrowers of their rights under this Section shall be at the sole cost and expense of the Borrowers and at no cost or expense to the Agent or any of the Lenders.

  

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Section 3.12.

	
Taxes.

 

(a)           Taxes Generally.  All payments by the Borrowers of principal of, and interest on, the Loans and all other Obligations shall be made free and clear of and without deduction for any present or future excise, stamp or other taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding (i) franchise taxes, (ii) any taxes imposed on or measured by the assets, net income, receipts or branch profits of any Lender or the Agent, (iii) any taxes (other than withholding taxes) with respect to the Agent or a Lender that would not be imposed but for a connection between the Agent or such Lender and the jurisdiction imposing such taxes (other than a connection arising solely by virtue of the activities of the Agent or such Lender pursuant to or in respect of this Agreement or any other Loan Document), and (iv) any taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges to the extent imposed as a result of the failure of the Agent or a Lender, as applicable, to provide and keep current (to the extent legally able) any certificates, documents or other evidence required to qualify for an exemption from, or reduced rate of, any such taxes fees, duties, levies, imposts, charges, deductions, withholdings or other charges or required by the immediately following subsection (c) to be furnished by the Agent or such Lender, as applicable (such non-excluded items being collectively called “Taxes”).  If any withholding or deduction from any payment to be made by the Borrowers hereunder is required in respect of any Taxes pursuant to any Applicable Law, then the Borrowers will:

 

(i)           pay directly to the relevant Governmental Authority the full amount required to be so withheld or deducted;

 

(ii)           promptly forward to the Agent an official receipt or other documentation satisfactory to the Agent evidencing such payment to such Governmental Authority; and

 

(iii)           pay to the Agent for its account or the account of the applicable Lender, as the case may be, such additional amount or amounts as is necessary to ensure that the net amount actually received by the Agent or such Lender will equal the full amount that the Agent or such Lender would have received had no such withholding or deduction been required.

 

(b)           Tax Indemnification.  If the Borrowers fail to pay any Taxes when due to the appropriate Governmental Authority or fails to remit to the Agent, for its account or the account of the respective Lender, as the case may be, the required receipts or other required documentary evidence, the Borrowers shall indemnify the Agent and the Lenders for any incremental Taxes, interest or penalties that may become payable by the Agent or any Lender as a result of any such failure.  For purposes of this Section, a distribution hereunder by the Agent or any Lender to or for the account of any Lender shall be deemed a payment by the Borrowers.

 

  

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(c)           Tax Forms.  Prior to the date that any Foreign Lender becomes a party hereto, such Foreign Lender shall deliver to the Borrowers and the Agent such certificates, documents or other evidence, as required by the Internal Revenue Code or Treasury Regulations issued pursuant thereto (including Internal Revenue Service Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms), properly completed, currently effective and duly executed by such Foreign Lender establishing that payments to it hereunder and under the Notes are (i) not subject to United States Federal backup withholding tax and (ii) not subject to United States Federal withholding tax imposed under the Internal Revenue Code.  Each such Foreign Lender shall, to the extent it may lawfully do so, (x) deliver further copies of such forms or other appropriate certifications on or before the date that any such forms expire or become obsolete and after the occurrence of any event requiring a change in the most recent form delivered to the Borrowers or the Agent and (y) obtain such extensions of the time for filing, and renew such forms and certifications thereof, as may be reasonably requested by the Borrowers or the Agent.  The Borrowers shall not be required to pay any amount pursuant to the last sentence of subsection (a) above to any Foreign Lender or the Agent, if it is organized under the laws of a jurisdiction outside of the United States of America, if such Foreign Lender or the Agent, as applicable, fails to comply with the requirements of this subsection.  If any such Foreign Lender, to the extent it may lawfully do so, fails to deliver the above forms or other documentation, then the Agent may withhold from any payments to be made to such Foreign Lender under any of the Loan Documents such amounts as are required by the Internal Revenue Code. If any Governmental Authority asserts that the Agent 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 Lender, such Lender shall indemnify the Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Agent 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.  The obligation of the Lenders under this Section shall survive the termination of the Commitments, repayment of all Obligations and the resignation or replacement of the Agent.

 

(d)           USA Patriot Act Notice; Compliance.  In order for the Agent to comply with the USA Patriot Act of 2001 (Public Law 107-56), prior to any Foreign Lender becoming a party hereto, the Agent may request, and such Lender shall provide to the Agent, its name, address, tax identification number and/or such other identification information as shall be necessary for the Agent to comply with federal law.

 

  

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ARTICLE IV. - YIELD PROTECTION, ETC.

 

	
Section 4.1.

	
Additional Costs; Capital Adequacy.

 

(a)           Additional Costs.  The Borrowers shall promptly pay to the Agent for the account of each affected Lender from time to time such amounts as such Lender may reasonably determine to be necessary to compensate such Lender for any costs incurred by such Lender that it determines are attributable to its making or maintaining of any LIBOR Loans or its obligation to make any LIBOR Loans hereunder, any reduction in any amount receivable by such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or such obligation or the maintenance by such Lender of capital in respect of its Loans or its Commitment (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), to the extent resulting from any Regulatory Change that:  (i) changes the basis of taxation of any amounts payable to such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or its Commitment (other than taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges which are excluded from the definition of Taxes pursuant to the first sentence of Section 3.12(a)); or (ii) imposes or modifies any reserve, special deposit or similar requirements (other than Regulation D of the Board of Governors of the Federal Reserve System or other reserve requirement to the extent utilized in the determination of LIBOR for such Loan) relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, such Lender (or corporation controlling such Lender), or any commitment of such Lender (including, without limitation, the Commitment of such Lender hereunder); or (iii) has or would have the effect of reducing the rate of return on capital of such Lender (or a corporation controlling such Lender) to a level below that which such Lender could have achieved but for such Regulatory Change (taking into consideration such Lender’s policies (or such corporation’s) with respect to capital adequacy).

 

(b)           Lender’s Suspension of LIBOR Loans.  Without limiting the effect of the provisions of the immediately preceding subsection (a), if, by reason of any Regulatory Change, any Lender either (i) incurs Additional Costs based on or measured by the excess above a specified level of the amount of a category of deposits or other liabilities of such Lender that includes deposits by reference to which the interest rate on LIBOR Loans is determined as provided in this Agreement or a category of extensions of credit or other assets of such Lender that includes LIBOR Loans or (ii) becomes subject to restrictions on the amount of such a category of liabilities or assets that it may hold, then, if such Lender so elects by notice to the Borrower Representative (with a copy to the Agent), the obligation of such Lender to make or Continue, or to Convert any other Type of Loans into, LIBOR Loans hereunder shall be suspended until such Regulatory Change ceases to be in effect (in which case the provisions of Section 4.6 shall apply).

 

(c)           Notification and Determination of Additional Costs.  Each of the Agent and each Lender agrees to notify the Borrowers of any event occurring after the Agreement Date entitling the Agent or such Lender to compensation under any of the preceding subsections of this Section as promptly as practicable; provided, however, the failure of the Agent or any Lender to give such notice shall not release the Borrowers from any of their obligations hereunder (and in the case of a Lender, to the Agent).  The Agent or such Lender agrees to furnish to the Borrowers (and in the case of a Lender, to the Agent) a certificate setting forth in reasonable detail the basis and amount of each request by the Agent or such Lender for compensation under this Section.  Absent manifest error, determinations by the Agent or any Lender of the effect of any Regulatory Change shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith.

 

	
Section 4.2.

	
Suspension of LIBOR Loans.

 

Anything herein to the contrary notwithstanding, if, on or prior to the determination of LIBOR for any Interest Period:

 

  

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(a)           the Agent reasonably determines (which determination shall be conclusive) that by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining LIBOR for such Interest Period, or

 

(b)           the Agent reasonably determines (which determination shall be conclusive) that LIBOR will not adequately and fairly reflect the cost to the Lenders of making or maintaining LIBOR Loans for such Interest Period;

 

then the Agent shall give the Borrowers and each Lender prompt notice thereof and, so long as such condition remains in effect, the Lenders shall be under no obligation to, and shall not, make additional LIBOR Loans, Continue LIBOR Loans or Convert Loans into LIBOR Loans and the Borrowers shall, on the last day of each current Interest Period for each outstanding LIBOR Loan, either repay such Loan or Convert such Loan into a Base Rate Loan.

 

	
Section 4.3.

	
Illegality.

 

Notwithstanding any other provision of this Agreement, if any Lender shall reasonably determine (which determination shall be conclusive and binding) that it has become unlawful for such Lender to honor its obligation to make or maintain LIBOR Loans hereunder, then such Lender shall promptly notify the Borrower Representative thereof (with a copy to the Agent) and such Lender’s obligation to make or Continue, or to Convert Loans of any other Type into, LIBOR Loans shall be suspended until such time as such Lender may again make and maintain LIBOR Loans (in which case the provisions of Section 4.6 shall be applicable).

 

	
Section 4.4.

	
Compensation.

 

The Borrowers shall pay to the Agent for the account of each Lender, upon the request of such Lender through the Agent, such amount or amounts as the Agent shall determine in its sole discretion shall be sufficient to compensate such Lender for any loss, cost or expense attributable to:

 

(a)           any payment or prepayment (whether mandatory or optional) of a LIBOR Loan, or Conversion of a LIBOR Loan, made by such Lender for any reason (including, without limitation, acceleration) on a date other than the last day of the Interest Period for such Loan; or

 

(b)           any failure by the Borrowers for any reason (including, without limitation, the failure of any of the applicable conditions precedent specified in Article V to be satisfied) to borrow a LIBOR Loan from such Lender on the requested date for such borrowing, or to Convert a Base Rate Loan into a LIBOR Loan or Continue a LIBOR Loan on the requested date of such Conversion or Continuation.

 

Not in limitation of the foregoing, such compensation shall include, without limitation, in the case of a LIBOR Loan, an amount equal to the then present value of (A) the amount of interest that would have accrued on such LIBOR Loan for the remainder of the Interest Period at the rate applicable to such LIBOR Loan, less (B) the amount of interest that would accrue on the same LIBOR Loan for the same period if LIBOR were set on the date on which such LIBOR Loan was repaid, prepaid or Converted or the date on which the Borrower failed to borrow, Convert or Continue such LIBOR Loan, as applicable, calculating present value by using as a discount rate LIBOR quoted on such date.  Upon the request of the Borrower Representative, the Agent shall provide the Borrower Representative with a statement setting forth the basis for requesting such compensation and the method for determining the amount thereof.  Absent manifest error, determinations by the Agent in any such statement shall be conclusive.

 

  

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Section 4.5.

	
Affected Lenders.

 

If (a) a Lender requests compensation pursuant to Section 3.12 or 4.1, and the Requisite Lenders are not also doing the same, or (b) the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1(b) or 4.3 but the obligation of the Requisite Lenders shall not have been suspended under such Sections, then, so long as there does not then exist any Default or Event of Default, the Borrowers may demand that such Lender (the “Affected Lender”), and upon such demand the Affected Lender shall promptly, assign its Commitment and Loans to an Eligible Assignee subject to and in accordance with the provisions of Section 12.5(b) for a purchase price equal to the aggregate principal balance of all Loans then owing to the Affected Lender plus any accrued but unpaid interest thereon and accrued but unpaid fees owing to the Affected Lender, or any other amount as may be mutually agreed upon by such Affected Lender and Eligible Assignee.  Each of the Agent and the Affected Lender shall reasonably cooperate in effectuating the replacement of such Affected Lender under this Section, but at no time shall the Agent, such Affected Lender, any other Lender or any Titled Agent be obligated in any way whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee.  The exercise by the Borrowers of their rights under this Section shall be at the Borrowers’ sole cost and expense and at no cost or expense to the Agent, the Affected Lender or any of the other Lenders.  The terms of this Section shall not in any way limit the Borrowers’ obligation to pay to any Affected Lender compensation owing to such Affected Lender pursuant to this Agreement (including without limitation, pursuant to Section 3.12 or 4.1) with respect to periods up to the date of replacement.

 

	
Section 4.6.

	
Treatment of Affected Loans.

 

If the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1(b) or 4.3, then such Lender’s LIBOR Loans shall be automatically Converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for LIBOR Loans (or, in the case of a Conversion required by Section 4.1(b) or 4.3, on such earlier date as such Lender may specify to the Borrower Representative with a copy to the Agent) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 4.1 or 4.3 that gave rise to such Conversion no longer exist:

 

(a)           to the extent that such Lender’s LIBOR Loans have been so Converted, all payments and prepayments of principal that would otherwise be applied to such Lender’s LIBOR Loans shall be applied instead to its Base Rate Loans; and

 

  

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(b)           all Loans that would otherwise be made or Continued by such Lender as LIBOR Loans shall be made or Continued instead as Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise be Converted into LIBOR Loans shall remain as Base Rate Loans.

 

If such Lender gives notice to the Borrowers (with a copy to the Agent) that the circumstances specified in Section 4.1 or 4.3 that gave rise to the Conversion of such Lender’s LIBOR Loans pursuant to this Section no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when LIBOR Loans made by other Lenders are outstanding, then such Lender’s Base Rate Loans shall be automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding LIBOR Loans, to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders holding LIBOR Loans and by such Lender are held pro rata (as to principal amounts, Types and Interest Periods) in accordance with their respective Commitments.

 

	
Section 4.7.

	
Change of Lending Office.

 

Each Lender agrees that it will use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate an alternate Lending Office with respect to any of its Loans affected by the matters or circumstances described in Section 3.12, 4.1 or 4.3. to reduce the liability of the Borrowers or avoid the results provided thereunder, so long as such designation is not disadvantageous to such Lender as determined by such Lender in its sole discretion, except that such Lender shall have no obligation to designate a Lending Office located in the United States of America.

 

	
Section 4.8.

	
Assumptions Concerning Funding of LIBOR Loans.

 

Calculation of all amounts payable to a Lender under this Article IV shall be made as though such Lender had actually funded  LIBOR Loans through the purchase of deposits in the relevant market bearing interest at the rate applicable to such LIBOR Loans in an amount equal to the amount of the LIBOR Loans and having a maturity comparable to the relevant Interest Period; provided, however, that each Lender may fund each of its LIBOR Loans in any manner it sees fit and the foregoing assumption shall be used only for calculation of amounts payable under this Article IV.

 

ARTICLE V. - CONDITIONS PRECEDENT

 

	
Section 5.1.

	
Initial Conditions Precedent.

 

The obligation of the Lenders to make the initial Loans is subject to the following conditions precedent:

 

(a)           The Agent shall have received each of the following, in form and substance satisfactory to the Agent:

 

(i)           Counterparts of this Agreement executed by each of the parties hereto;

 

(ii)           Notes executed by the Borrowers, payable to each Lender and complying with the applicable provisions of Section 2.10;

 

  

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(iii)           The Guaranty executed by each Guarantor existing as of the Effective Date;

 

(iv)           The Pledge Agreement executed by each Pledgor existing as of the Agreement Date;

 

(v)           Opinions of counsel to the Loan Parties, addressed to the Agent and the Lenders, addressing the matters set forth in Exhibit F;

 

(vi)           The articles of incorporation, articles of organization, certificate of limited partnership or other comparable organizational instrument (if any) of the Borrowers and each other Loan Party certified as of a recent date by the Secretary of State of the state of formation of such Loan Party;

 

(vii)           A certificate of good standing or certificate of similar meaning with respect to each Loan Party issued as of a recent date by the Secretary of State of the state of formation of each such Loan Party and certificates of qualification to transact business or other comparable certificates issued by each Secretary of State (and any state department of taxation, as applicable) of each state in which such Loan Party is required to be so qualified and where the failure to be so qualified could reasonably be expected to have a Material Adverse Effect;

 

(viii)           A certificate of incumbency signed by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party with respect to each of the officers of such Loan Party authorized to execute and deliver the Loan Documents to which such Loan Party is a party, and in the case of the Borrowers, and the officers of the Borrower Representative then authorized to deliver Notices of Borrowing, Notices of Continuation and Notices of Conversion;

 

(ix)           Copies certified by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party of (i) the by-laws of such Loan Party, if a corporation, the operating agreement of such Loan Party, if a limited liability company, the partnership agreement of such Loan Party, if a limited or general partnership, or other comparable document in the case of any other form of legal entity and (ii) all corporate, partnership, member or other necessary action taken by such Loan Party to authorize the execution, delivery and performance of the Loan Documents to which it is a party;

 

(x)           Evidence that the Fees then due and payable under Section 3.6, and any other Fees, expenses and reimbursable amounts due and payable to the Agent, the Titled Agents and the Lenders on or prior to the Effective Date have been paid;

 

(xi)           A Compliance Certificate calculated as of September 30, 2011 (giving pro forma effect to the financing contemplated by this Agreement and the Revolving Credit Agreement and the use of the proceeds of the Loans to be funded on the Effective Date);

 

  

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(xii)           A letter from each applicable agent under the Existing Credit Agreement providing information regarding the payment in full of amounts outstanding thereunder and providing for the treatment thereof;

 

(xiii)           A Borrowing Base Certificate dated as of the Effective Date;

 

(xiv)           Such due diligence (including lien searches and/or title reports) with respect to the Borrowing Base Assets Pool as the Agent on behalf of the Lenders may reasonably request;

 

(xv)           Each document (including, without limitation, any UCC financing statement) and all actions required by any Loan Document or under Applicable Law or reasonably deemed necessary or appropriate by the Agent to be entered into, filed, registered or recorded or taken, in order to create in favor of the Agent, for the benefit of the Lenders, a perfected first-priority Lien in the Collateral as of the Effective Date, shall have been entered into, filed, registered, recorded, taken or shall have been delivered to the Agent and be in proper form for filing, registration or recordation, as appropriate;

 

(xvi)           A Transfer Authorizer Designation Form effective as of the Agreement Date;

 

(xvii)           Evidence that the Intercreditor Agreement shall have been duly executed and delivered by each party thereto and shall be in full force and effect;

 

(xviii)           Evidence that the Revolving Credit Agreement and the other Loan Documents (as defined in the Revolving Credit Agreement) to be executed and delivered as a condition to the effectiveness of the Revolving Credit Agreement, shall have been duly executed and delivered by each party thereto and shall be in full force and effect;

 

(xix)           A Notice of Borrowing requesting a borrowing of Loans in an aggregate principal amount of $50,000,000 or more; and

 

(xx)           Such other documents, agreements and instruments as the Agent on behalf of the Lenders may reasonably request; and

 

(b)           In the good faith judgment of the Agent and the Lenders:

 

(i)           There shall not have occurred or become known to the Agent or any of the Lenders any event, condition, situation or status since the date of the information contained in the financial and business projections, budgets, pro forma data and forecasts concerning the Trust and its Subsidiaries delivered to the Agent and the Lenders prior to the Agreement Date that has had or could reasonably be expected to result in a Material Adverse Effect;

 

(ii)           No litigation, action, suit, investigation or other arbitral, administrative or judicial proceeding shall be pending or threatened which could reasonably be expected to (1) result in a Material Adverse Effect or (2) restrain or enjoin, impose materially burdensome conditions on, or otherwise materially and adversely affect the ability of the Borrowers or any other Loan Party to fulfill its obligations under the Loan Documents to which it is a party;

 

  

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(iii)           The Trust and its Subsidiaries shall have received all approvals, consents and waivers, and shall have made or given all necessary filings and notices, as shall be required to consummate the transactions contemplated hereby without the occurrence of any default under, conflict with or violation of (1) any Applicable Law or (2) any agreement, document or instrument to which any Borrower or any other Loan Party is a party or by which any of them or their respective properties is bound, except for such approvals, consents, waivers, filings and notices the receipt, making or giving of which would not reasonably be likely to (A) have a Material Adverse Effect, or (B) restrain or enjoin, impose materially burdensome conditions on, or otherwise materially and adversely affect the ability of any Borrower or any other Loan Party to fulfill its obligations under the Loan Documents to which it is a party;

 

(iv)           There shall not have occurred or exist any other material disruption of financial or capital markets that could reasonably be expected to materially and adversely affect the transactions contemplated by the Loan Documents; and

 

(v)           The Borrowers and each other Loan Party shall have provided all information requested by the Agent and each Lender in order to comply with the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

 

	
Section 5.2.

	
Conditions Precedent to All Loans.

 

The obligation of the Lenders to make any Loans is subject to the further condition precedent that: (a) no Default or Event of Default shall exist as of the date of the making of such Loan or would exist immediately after giving effect thereto; and (b) the representations and warranties made or deemed made by the Borrowers and each other Loan Party in the Loan Documents to which any of them is a party, shall be true and correct in all material respects on and as of the date of the making of such Loan with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  Each Credit Event shall constitute a certification by the Borrowers to the effect set forth in the preceding sentence (both as of the date of the giving of notice relating to such Credit Event and, unless the Borrowers otherwise notify the Agent prior to the date of such Credit Event, as of the date of the occurrence of such Credit Event).  In addition, if such Credit Event is the making of a Loan, the Borrowers shall be deemed to have represented to the Agent and the Lenders at the time such Loan is made that all conditions to the occurrence of such Credit Event contained in this Article V have been satisfied.

 

ARTICLE VI. - REPRESENTATIONS AND WARRANTIES

 

	
Section 6.1.

	
Representations and Warranties.

 

In order to induce the Agent and each Lender to enter into this Agreement and to make Loans, each Borrower represents and warrants to the Agent and each Lender as follows:

  

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(a)           Organization; Power; Qualification.  Each of the Borrowers, the other Loan Parties and the other Subsidiaries is a corporation, partnership or other legal entity, duly organized or formed, validly existing and in good standing under the jurisdiction of its incorporation or formation, has the power and authority to own or lease its respective properties and to carry on its respective business as now being conducted and is duly qualified and is in good standing as a foreign corporation, partnership or other legal entity, and authorized to do business, in each jurisdiction in which the character of its properties or the nature of its business requires such qualification or authorization and where the failure to be so qualified or authorized could reasonably be expected to have, in each instance, a Material Adverse Effect.

 

(b)           Ownership Structure.  As of the Agreement Date, Part I of Schedule 6.1.(b) is a complete and correct list of all Subsidiaries of the Trust setting forth for each such Subsidiary, (i) the jurisdiction of organization of such Subsidiary, (ii) each Person holding any Equity Interests in such Subsidiary, (iii) the nature of the Equity Interests held by each such Person, (iv) the percentage of ownership of such Subsidiary represented by such Equity Interests and (v) whether such Subsidiary is a Guarantor or  Property Subsidiary. Except as disclosed in such Schedule or the periodic reports filed by the Trust with the Securities and Exchange Commission, as of the Agreement Date (i) each of the Trust and its Subsidiaries owns, free and clear of all Liens (other than Permitted Liens), and has the unencumbered right to vote, all outstanding Equity Interests in each Property Subsidiary shown to be held by it on such Schedule, (ii) all of the issued and outstanding capital stock of each such Property Subsidiary organized as a corporation is validly issued, fully paid and nonassessable and (iii) there are no outstanding subscriptions, options, warrants, commitments, preemptive rights or agreements of any kind (including, without limitation, any stockholders’ or voting trust agreements) for the issuance, sale, registration or voting of, or outstanding securities convertible into, any additional shares of capital stock of any class, or partnership or other ownership interests of any type in, any such Property Subsidiary.  As of the Agreement Date Part II of Schedule 6.1.(b) correctly sets forth all Unconsolidated Affiliates of the Trust, including the correct legal name of such Person, the type of legal entity which each such Person is, and all Equity Interests in such Person held directly or indirectly by the Trust.

 

(c)           Authorization of Agreement, Etc.  Each Borrower has the right and power, and has taken all necessary action to authorize it, to borrow and obtain other extensions of credit hereunder.  Each of the Borrowers and the other Loan Parties has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform each of the Loan Documents and the Fee Letter to which it is a party in accordance with their respective terms and to consummate the transactions contemplated hereby and thereby.  The Loan Documents and the Fee Letter to which any Borrower or any other Loan Party is a party have been duly executed and delivered by the duly authorized officers of such Person and each is a legal, valid and binding obligation of such Person enforceable against such Person in accordance with its respective terms except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations (other than the payment of principal) contained herein or therein and as may be limited by equitable principles generally.

 

  

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(d)           Compliance of Loan Documents with Laws, Etc.  The execution, delivery and performance of this Agreement, the Notes and the other Loan Documents to which any Borrower or any other Loan Party is a party and of the Fee Letter in accordance with their respective terms and the borrowings and other extensions of credit hereunder do not and will not, by the passage of time, the giving of notice, or both:  (i) require any Governmental Approval or violate any Applicable Law (including all Environmental Laws) relating to any Borrower or any other Loan Party; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of any Borrower or any other Loan Party, or any indenture, agreement or other instrument to which any Borrower or any other Loan Party is a party or by which it or any of its respective properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by any Borrower or any other Loan Party, other than Liens created pursuant to the Loan Documents or Liens securing the Obligations (as defined in the Revolving Credit Agreement) which are subject to the Intercreditor Agreement.

 

(e)           Compliance with Law; Governmental Approvals.  Each of the Borrowers, each other Loan Party and each other Subsidiary is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws (including without limitation, Environmental Laws) relating to a Borrower, a Subsidiary or such other Loan Party except for noncompliances which, and Governmental Approvals the failure to possess which, could not, individually or in the aggregate, reasonably be expected to cause a Default or Event of Default or have a Material Adverse Effect.

 

(f)           Title to Properties; Liens.  As of the Agreement Date, Schedule 6.1.(f) is a complete and correct listing of all of the real property owned or leased by each Borrower, each other Loan Party and each other Subsidiary.  Each such Person has good, marketable and legal title to, or a valid leasehold interest in, its respective assets.  As of the Agreement Date, there are no Liens against any assets of any Borrower, any other Loan Party or any other Subsidiary except for Permitted Liens.

 

(g)           Existing Indebtedness.  Schedule 6.1.(g) is, as of December 31, 2011, a complete and correct listing of all Indebtedness of the Trust and its Subsidiaries, including without limitation, Guarantees of the Trust and its Subsidiaries, and indicating whether such Indebtedness is Secured Indebtedness.  Indebtedness of the Trust and its Subsidiaries incurred from December 31, 2011, to and including the Agreement Date does not exceed $10,000,000.

 

(h)           Material Contracts.  Schedule 6.1.(h) is, as of the Agreement Date, a true, correct and complete listing of all Material Contracts.  No event or condition exists which with the giving of notice, the lapse of time, or both, would permit any party to any Material Contract to terminate such Material Contract.

 

(i)           Litigation.  Except as set forth on Schedule 6.1.(i), there are no actions, suits, investigations or proceedings pending (nor, to the knowledge of the Borrowers, are there any actions, suits or proceedings threatened) against or in any other way relating adversely to or affecting any Borrower, any other Loan Party or any other Subsidiary or any of their respective property in any court or before any arbitrator of any kind or before or by any other Governmental Authority which (i) could reasonably be expected to have a Material Adverse Effect or (ii) in any manner draw into question the validity or enforceability of any Loan Document or the Fee Letter.  There are no strikes, slow downs, work stoppages or walkouts or other labor disputes in progress or threatened relating to any Borrower, any other Loan Party or any other Subsidiary which could reasonably be expected to have a Material Adverse Effect.

 

  

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(j)           Taxes.  All federal, state and other tax returns of each Borrower, each other Loan Party and each other Subsidiary required by Applicable Law to be filed have been duly filed, and all federal, state and other taxes, assessments and other governmental charges or levies upon each Borrower, each other Loan Party and each other Subsidiary and their respective properties, income, profits and assets which are due and payable have been paid, except any such nonpayment which is at the time permitted under Section 7.6 and except in each case for noncompliance with respect to filing or payment which could not reasonably be expected to have a Material Adverse Effect.  None of the United States income tax returns of any Borrower, any other Loan Party or any other Subsidiary is under an audit.  All charges, accruals and reserves on the books of the Trust and each of its Subsidiaries in respect of any taxes or other governmental charges are in accordance with GAAP.

 

(k)           Financial Statements.  The Trust has furnished to each Lender copies of (i) the audited consolidated balance sheet of the Trust and its consolidated Subsidiaries for the fiscal year ending December 31, 2010, and the related audited consolidated statements of operations, cash flows and changes in shareholders’ equity for the fiscal year ending on such dates, with the opinion thereon of KPMG LLP, and (ii) the unaudited consolidated balance sheet of the Trust and its consolidated Subsidiaries for the fiscal quarter ending September 30, 2011, and the related unaudited consolidated statements of operations and cash flows of the Trust and its consolidated Subsidiaries for the fiscal quarter ending on such date.  Such financial statements (including in each case related schedules and notes) present fairly, in all material respects and in accordance with GAAP consistently applied throughout the periods involved, the consolidated financial position of the Trust and its consolidated Subsidiaries at their respective dates and the results of operations and the cash flow for such periods (subject, as to interim statements, to changes resulting from normal year-end audit adjustments).  Neither the Trust nor any of its Subsidiaries has on the Agreement Date any contingent liabilities, liabilities, liabilities for taxes, unusual or long-term commitments or unrealized or forward anticipated losses from any unfavorable commitments, in each case, that could reasonably be expected to have a Material Adverse Effect and that would not be required to be set forth in its financial statements or in the notes thereto, except as referred to or reflected or provided for in said financial statements.

 

(l)           No Material Adverse Change.  Since December 31, 2010, there has been no material adverse change in the business, assets, liabilities, financial condition, results of operations or business prospects of the Trust and its Subsidiaries taken as a whole.  Each of the Borrowers, the other Loan Parties and the other Subsidiaries is Solvent.

 

  

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(m)           ERISA.

        (i)            Each Benefit Arrangement is in compliance with the applicable provisions of ERISA, the Internal Revenue Code and other Applicable Laws in all material respects.  Except with respect to Multiemployer Plans, each Qualified Plan (A) has received a favorable determination from the Internal Revenue Service applicable to such Qualified Plan’s current remedial amendment cycle (as defined in Revenue Procedure 2007-44 or “2007-44” for short), (B) has timely filed for a favorable determination letter from the Internal Revenue Service during its staggered remedial amendment cycle (as defined in 2007-44) and such application is currently being processed by the Internal Revenue Service, (C) had filed for a determination letter prior to its “GUST remedial amendment period” (as defined in 2007-44) and received such determination letter and the staggered remedial amendment cycle first following the GUST remedial amendment period for such Qualified Plan has not yet expired, or (D) is maintained under a prototype plan and may rely upon a favorable opinion letter issued by the Internal Revenue Service with respect to such prototype plan.  To the best knowledge of the Trust, nothing has occurred which would cause the loss of its reliance on each Qualified Plan’s favorable determination letter or opinion letter.

(ii)           With respect to any Benefit Arrangement that is a retiree welfare benefit arrangement, all amounts have been accrued on the applicable ERISA Group’s financial statements in accordance with FASB ASC 715.  The “benefit obligation” of all Plans does not exceed the “fair market value of plan assets” for such Plans by more than $10,000,000 all as determined by and with such terms defined in accordance with FASB ASC 715.

(iii)           Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect: (i) no ERISA Event has occurred or is expected to occur; (ii) there are no pending, or to the best knowledge of the Borrowers, threatened, claims, actions or lawsuits or other action by any Governmental Authority, plan participant or beneficiary with respect to a Benefit Arrangement; (iii) there are no violations of the fiduciary responsibility rules with respect to any Benefit Arrangement; and (iv) no member of the ERISA Group has engaged in a non-exempt “prohibited transaction,” as defined in Section 406 of ERISA and Section 4975 of the Internal Revenue Code, in connection with any Plan, that would subject any member of the ERISA Group to a tax on prohibited transactions imposed by Section 502(i) of ERISA or Section 4975 of the Internal Revenue Code.

(n)           Not Plan Assets; No Prohibited Transaction.  None of the assets of any Borrower, any other Loan Party or any other Subsidiary constitute “plan assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder.  The execution, delivery and performance of this Agreement and the other Loan Documents, and the borrowing and repayment of amounts hereunder, do not and will not constitute non-exempt “prohibited transactions” under ERISA or the Internal Revenue Code.

 

(o)           Absence of Defaults.  None of the Borrowers, any of the other Loan Parties or any of the other Subsidiaries is in default under its certificate or articles of incorporation or formation, bylaws, partnership agreement or other similar organizational documents, and no event has occurred, which has not been remedied, cured or waived, which, in any such case:  (i) constitutes a Default or an Event of Default; or (ii) constitutes, or which with the passage of time, the giving of notice, or both, would constitute, a default or event of default by any Borrower,  any other Loan Party or any other Subsidiary under any Material Contract (other than this Agreement) or judgment, decree or order to which any Borrower, any other Loan Party or any other Subsidiary is a party or by which any Borrower, any other Loan Party or any other Subsidiary, or any of their respective properties may be bound where, in the case of (ii), such default or event of default could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

  

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(p)           Environmental Laws.  Each of the Borrowers, the other Loan Parties and the other Subsidiaries has obtained all Governmental Approvals which are required under Environmental Laws and is in compliance with all terms and conditions of such Governmental Approvals which the failure to obtain or to comply with could reasonably be expected to have a Material Adverse Effect.  Except for any of the following matters that could not be reasonably expected to have a Material Adverse Effect, (i) the Trust is not aware of, and has not received notice of, any past, present, or future events, conditions, circumstances, activities, practices, incidents, actions, or plans which, with respect to any Borrower, any other Loan Party or any other Subsidiary, may interfere with or prevent compliance or continued compliance with Environmental Laws, or may give rise to any common-law or legal liability, or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, or investigation, based on or related to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling or the emission, discharge, release or threatened release into the environment, of any Hazardous Material; and (ii) there is no civil, criminal, or administrative action, suit, demand, claim, hearing, notice, or demand letter, notice of violation, investigation, or proceeding pending or, to the Trust’s knowledge, threatened, against any Borrower, any other Loan Party or any other Subsidiary relating to any Environmental Laws.  None of the Borrowing Base Assets is listed on or proposed for listing on the National Priority List promulgated pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 and its implementing regulations, or any state or local priority list promulgated pursuant to any analogous state or local law.  To the Trust’s knowledge, no Hazardous Materials generated at or transported from the Borrowing Base Assets are or have been transported to, or disposed of at, any location that is listed or proposed for listing on the National Priority List or any analogous state or local priority list, or any other location that is or has been the subject of a clean-up, removal or remedial action pursuant to any Environmental Law, except to the extent that such transportation or disposal could not reasonably be expected to have or result in a Material Adverse Effect.

 

(q)           Investment Company.  None of the Borrowers, any of the other Loan Parties or any of the other Subsidiaries (i) is required to register as an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or (ii) is subject to any other Applicable Law which purports to regulate or restrict its ability to borrow money or to consummate the transactions contemplated by this Agreement or to perform its obligations under any Loan Document to which it is a party.

 

(r)           Margin Stock.  None of the Borrowers, any of the other Loan Parties or any of the other Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System.

 

(s)           [Reserved].

 

  

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(t)           Intellectual Property.  Each of the Borrowers, other Loan Parties and the other Subsidiaries owns or has the right to use, under valid license agreements or otherwise, all material patents, licenses, franchises, trademarks, trademark rights, service marks, service mark rights, trade names, trade name rights, trade secrets and copyrights (collectively, “Intellectual Property”) necessary to the conduct of its businesses as now conducted and as contemplated by the Loan Documents, without known conflict with any patent, license, franchise, trademark, trademark right, service mark, service mark right, trade secret, trade name, copyright or other proprietary right of any other Person.  The Borrowers, the other Loan Parties and the other Subsidiaries have taken all such steps as they deem reasonably necessary to protect their respective rights under and with respect to such Intellectual Property.  No material claim has been asserted by any Person with respect to the use of any such Intellectual Property by any Borrower, any other Loan Party or any other Subsidiary, or challenging or questioning the validity or effectiveness of any such Intellectual Property.  The use of such Intellectual Property by the Borrowers, the other Loan Parties and the other Subsidiaries, does not infringe on the rights of any Person, subject to such claims and infringements as do not, in the aggregate, give rise to any liabilities on the part of any Borrower, any other Loan Party or any other Subsidiary that could reasonably be expected to have a Material Adverse Effect.

 

(u)           Business.  As of the Agreement Date, the Trust and its Subsidiaries are engaged in the business of acquiring, owning, investing in and managing net leased office, industrial and retail properties, together with other business activities incidental thereto.

 

(v)           Broker’s Fees.  No broker’s or finder’s fee, commission or similar compensation will be payable with respect to the transactions contemplated hereby, other than fees payable to Lenders.  No other similar fees or commissions will be payable by any Loan Party for any other services rendered to the Trust or any of its Subsidiaries ancillary to the transactions contemplated hereby.

 

(w)           Accuracy and Completeness of Information.  No written information, report or other papers or data (excluding financial projections and other forward looking statements) furnished to the Agent or any Lender by, on behalf of, or at the direction of, any Borrower, any other Loan Party or any other Subsidiary in connection with, pursuant to or relating in any way to this Agreement, contained any untrue statement of a fact material to the Borrowers, the other Loan Parties and the other Subsidiaries taken as a whole or omitted to state a material fact necessary in order to make such statements contained therein, in light of the circumstances under which they were made, not misleading.  All financial statements (including in each case all related schedules and notes) furnished to the Agent or any Lender by, on behalf of, or at the direction of, any Borrower, any other Loan Party or any other Subsidiary in connection with, pursuant to or relating in any way to this Agreement, present fairly, in all material respects and in accordance with GAAP consistently applied throughout the periods involved, the financial position of the Persons involved as at the date thereof and the results of operations for such periods (subject, as to interim statements, to changes resulting from normal year-end audit adjustments).  All financial projections and other forward looking statements prepared by or on behalf of any Borrower, any other Loan Party or any other Subsidiary that have been or may hereafter be made available to the Agent or any Lender were or will be prepared in good faith based on reasonable assumptions as of the date of such information; provided, however, the Agent and the Lenders recognize that such projections as to future events are not to be viewed as facts or guarantees of future performance and that actual results during the period or periods covered by any such projections may differ from the projected results.  As of the Effective Date, no fact is known to any Borrower which has had, or could reasonably be expected in the future to have (so far as such Borrower can reasonably foresee), a Material Adverse Effect which has not been set forth in the financial statements referred to in Section 6.1(k) or the periodic reports filed by the Trust with the Securities and Exchange Commission or in such information, reports or other papers or data or otherwise disclosed in writing to the Agent and the Lenders.

 

  

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(x)           REIT Status.  The Trust has elected to be treated as, and qualifies as, a REIT and is in compliance with all requirements and conditions imposed under the Internal Revenue Code to allow the Trust to maintain its status as a REIT.

 

(y)           OFAC.  None of the Borrowers, any of the other Loan Parties, any of the other Subsidiaries, or any other Affiliate of the Borrowers: (i) is a person named on the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) available at http://www.treas.gov/offices/enforcement/ofac/index.shtml or as otherwise published from time to time; (ii) is (A) an agency of the government of a country, (B) an organization controlled by a country, or (C) a person resident in a country that is subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/index.shtml, or as otherwise published from time to time, as such program may be applicable to such agency, organization or person; or (iii) derives any of its assets or operating income from investments in or transactions with any such country, agency, organization or person; and none of the proceeds from any Loan will be used to finance any operations, investments or activities in, or make any payments to, any such country, agency, organization, or person.

 

(z)           Security Interests.  The Pledge Agreement creates, as security for the Obligations, a valid and enforceable Lien on all of the Collateral in favor of the Agent for its benefit and the benefit of the Lenders, superior to and prior to the rights of all third parties (subject to the terms of the Intercreditor Agreement) and subject to no other Liens (except for Permitted Liens of the types described in clauses (a), (e) and (f) of the definition of such term).

 

	
Section 6.2.

	
Survival of Representations and Warranties, Etc.

 

All statements contained in any certificate, financial statement or other instrument delivered by or on behalf of any Borrower, any other Loan Party or any other Subsidiary to the Agent or any Lender pursuant to or in connection with this Agreement or any of the other Loan Documents (including, but not limited to, any such statement made in or in connection with any amendment hereto or thereto or any such statement contained in any certificate, financial statement or other instrument delivered by or on behalf of any Borrower, any other Loan Party or any other Subsidiary prior to the Agreement Date and delivered to the Agent or any Lender in connection with the underwriting or closing of the transactions contemplated hereby) shall constitute representations and warranties made by the Borrowers in favor of the Agent and the Lenders under this Agreement.  All representations and warranties made under this Agreement and the other Loan Documents shall be deemed to be made at and as of the Agreement Date, the Effective Date, and the date of the occurrence of any Credit Event, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  All such representations and warranties shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents and the making of the Loans.

 

  

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ARTICLE VII. - AFFIRMATIVE COVENANTS

 

For so long as this Agreement is in effect and any Obligations remain outstanding, unless the appropriate Lenders required pursuant to Section 12.6 shall otherwise consent in the manner provided for in Section 12.6, the Borrowers shall comply with the following covenants:

 

	
Section 7.1.

	
Preservation of Existence and Similar Matters.

 

Except as otherwise permitted under Section 9.7, the Borrowers shall, and shall cause each other Loan Party and each other Subsidiary to, preserve and maintain its respective existence, rights, franchises, licenses and privileges in the jurisdiction of its incorporation or formation and qualify and remain qualified and authorized to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification and authorization and where the failure to be so authorized and qualified could reasonably be expected to have a Material Adverse Effect.

	
Section 7.2.

	
Compliance with Applicable Law and Material Contracts.

 

The Borrowers shall, and shall cause each other Loan Party and each other Subsidiary to, comply with (a) all Applicable Laws, including the obtaining of all Governmental Approvals, the failure with which to comply could reasonably be expected to have a Material Adverse Effect, and (b) all terms and conditions of all Material Contracts to which it is a party.

 

	
Section 7.3.

	
Maintenance of Property.

 

In addition to the requirements of any of the other Loan Documents, the Borrowers shall, and shall cause each other Loan Party and each other Subsidiary to, (a) protect and preserve all of its respective properties, including, but not limited to, all Intellectual Property, and maintain in good repair, working order and condition all tangible properties, ordinary wear and tear excepted, and (b)  make or cause to be made all needed and appropriate repairs, renewals, replacements and additions to such properties, so that the business carried on in connection therewith may be properly and advantageously conducted at all times, except in the case of either (a) or (b), where the failure to do so could not reasonably be expected to cause a Material Adverse Effect.

 

	
Section 7.4.

	
Conduct of Business.

 

The Borrowers shall, and shall cause each other Loan Party and each other Subsidiary to, carry on, their respective businesses as described in Section 6.1(u).

 

  

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Section 7.5.

	
Insurance.

 

In addition to the requirements of any of the other Loan Documents, the Borrowers shall, and shall cause each other Loan Party and each other Subsidiary or with respect to Properties where the tenant is responsible for providing insurance, the Property Subsidiary shall cause such tenant to maintain insurance (on a replacement cost basis) with financially sound and reputable insurance companies against such risks and in such amounts as is customarily maintained by Persons engaged in similar businesses or as may be required by Applicable Law, and from time to time deliver to the Agent upon its request a detailed list, together with copies of all policies of the insurance then in effect, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby.

 

	
Section 7.6.

	
Payment of Taxes and Claims.

 

The Borrowers shall, and shall cause each other Loan Party and each other Subsidiary to, pay and discharge when due (a) all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or upon any properties belonging to it, and (b) all lawful claims of materialmen, mechanics, carriers, warehousemen and landlords for labor, materials, supplies and rentals which, if unpaid, might become a Lien on any properties of such Person; provided, however, that this Section shall not require the payment or discharge of any such tax, assessment, charge, levy or claim which is being contested in good faith by appropriate proceedings which operate to suspend the collection thereof and for which adequate reserves have been established on the books of the applicable Borrower, or Subsidiary, in accordance with GAAP.

 

	
Section 7.7.

	
Visits and Inspections.

 

The Borrowers shall, and shall cause each other Loan Party and each other Subsidiary to, permit representatives or agents of any Lender or the Agent, from time to time after reasonable prior notice if no Event of Default shall be in existence, and as often as may be reasonably requested, but only during normal business hours, to: (a) visit and inspect all properties of the Borrowers the other Loan Parties and the other Subsidiaries to the extent any such right to visit or inspect is within the control of such Person; (b) inspect and make extracts from their respective books and records, including but not limited to management letters prepared by independent accountants; and (c) discuss with its officers and employees, and its independent accountants, its business, properties, condition (financial or otherwise), results of operations and performance.  If requested by the Agent, the Borrowers shall execute an authorization letter addressed to its accountants authorizing the Agent or any Lender to discuss the financial affairs of any Borrower, any other Loan Party or any other Subsidiary with its accountants.  The exercise by the Agent or a Lender of its rights under this Section shall be at the expense of the Agent or such Lender, as the case may be, unless an Event of Default shall exist in which case it shall be at the expense of the Borrowers.

 

	
Section 7.8.

	
Use of Proceeds.

 

The Borrowers shall use the proceeds of the Loans for general corporate purposes only, including the refinancing of the debt under the Existing Credit Agreement, and the acquisition, renovation and improvement of real property by means of the direct or indirect investment by the Borrowers in joint ventures.  No part of the proceeds of any Loan will be used for the purpose of buying or carrying “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or to extend credit to others for the purpose of purchasing or carrying any such margin stock.

 

  

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Section 7.9.

	
Environmental Matters.

 

The Borrowers shall, and shall cause all of the other Loan Parties and all of the other Subsidiaries to, comply with all Environmental Laws the failure with which to comply could reasonably be expected to have a Material Adverse Effect.  If any Borrower, any other Loan Party or any other Subsidiary: (a) receives notice that any violation of any Environmental Law may have been committed or is about to be committed by such Person, (b) receives notice that any administrative or judicial complaint or order has been filed or is about to be filed against any Borrower, any other Loan Party or any other Subsidiary alleging violations of any Environmental Law or requiring any Borrower, any other Loan Party or any other Subsidiary to take any action in connection with the release of Hazardous Materials or (c) receives any notice from a Governmental Authority or private party alleging that any Borrower, any other Loan Party or any other Subsidiary may be liable or responsible for costs associated with a response to or cleanup of a release of Hazardous Materials or any damages caused thereby, and the matters referred to in such notices, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, the Borrowers shall provide the Agent with a copy of such notice promptly, and in any event within 10 Business Days, after the receipt thereof by a Borrower, any other Loan Party or any other Subsidiary.  The Borrowers shall, and shall cause the other Loan Parties and the other Subsidiaries to, take promptly all actions necessary to prevent the imposition of any Liens on any of their respective properties arising out of or related to any Environmental Laws.

 

	
Section 7.10.

	
Books and Records.

 

The Borrowers shall, and shall cause each of the other Loan Parties and each of the other Subsidiaries to, maintain books and records pertaining to its respective business operations in such detail, form and scope as is consistent with good business practice and in accordance with GAAP.

 

	
Section 7.11.

	
Further Assurances.

 

The Borrowers shall, at the Borrowers’ cost and expense and upon request of the Agent, execute and deliver or cause to be executed and delivered, to the Agent such further instruments, documents and certificates, and do and cause to be done such further acts that may be reasonably necessary or advisable in the reasonable opinion of the Agent to carry out more effectively the provisions and purposes of this Agreement and the other Loan Documents.

 

	
Section 7.12.

	
Release of a Guarantor.

 

The Borrowers may request in writing that the Agent release, and upon receipt of such request the Agent shall release, a Guarantor from the Guaranty so long as: (i) such Guarantor has ceased to be, or simultaneously with its release from the Guaranty will cease to be, a Property Subsidiary or a direct or indirect owner of any Equity Interests in any Property Subsidiary; (ii) no Default or Event of Default shall then be in existence or would occur as a result of such release, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 9.1; (iii) any required payment as a result of a Permitted Financing shall be made; and (iv) the Agent shall have received such written request at least 10 Business Days prior to the requested date of release.  Delivery by the Borrowers to the Agent of any such request shall constitute a representation by the Borrowers 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.

 

  

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Section 7.13.

	
        REIT Status.

 

The Trust shall at all times maintain its status as, and election to be treated as, a REIT unless (a) the Board of Trustees believes it is in the best interest of the Trust not to maintain its status as a REIT and (b) failure to maintain its status as a REIT would not be adverse to the interest of the Agent and the Lenders as determined by the Requisite Lenders.

 

	
Section 7.14.

	
Exchange Listing.

 

The Trust shall maintain at least one class of common shares of the Trust having trading privileges on the New York Stock Exchange or the NYSE AMEX Equities or which is the subject of price quotations in the over-the-counter market as reported by the National Association of Securities Dealers Automated Quotation System.

 

	
Section 7.15.

	
Addition of Borrowing Base Assets.

 

(a)           Subject to compliance with this Section 7.15(a), the Borrowers may from time to time elect to have a Property approved by the Agent and the Lenders as a Borrowing Base Asset.  In such event, the Borrower Representative shall provide to the Agent written notice thereof (each an “Confirmation Request”) no later than 10:00 a.m. on the Business Day that is at least ten (10) Business Days prior to the date on which the Borrowers wish to have such Property approved by the Agent and the Lenders as a Borrowing Base Asset, such Confirmation Request to (i) identify the Property proposed to be approved as a Borrowing Base Asset, (ii) set forth the calculation of the amount of Availability attributable to such proposed Property to be reflected on the Borrowing Base Certificate, and (iii) certify that such Property is an Eligible Unencumbered Property and complies with all of the representations and warranties applicable to such Property contained in Exhibit J hereto.  Together with the Confirmation Request, the Borrower Representative shall deliver to the Agent (x) a pro forma Borrowing Base Certificate, (y) the Borrowers’ credit write-up and approval memo relating to such prospective Borrowing Base Asset, if any, and (z) if requested by the Agent, an appraisal report relating to such prospective Borrowing Base Asset and such other documents as the Agent may reasonably request from time to time (collectively, the “Credit Underwriting Documents”).  With respect to any Property which the Borrowers have requested be approved by the Agent and the Lenders as a Borrowing Base Asset, Borrowers shall be deemed to represent and warrant hereunder that such Property is an Eligible Unencumbered Property and all of the representations and warranties as set forth on Exhibit J hereto are true and correct with respect to such Property. Promptly upon receipt of a Confirmation Request and all related Credit Underwriting Documents (collectively, each, a “Confirmation Request Package”), the Agent shall provide copies thereof to each Lender.

 

  

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(b)           On or before 5:00 p.m. on the tenth (10th) Business Day following the Agent's receipt of an Confirmation Request Package, the Agent will advise the Borrower Representative as to whether the Agent and the Requisite Lenders have confirmed the Confirmation Request.  If the Agent does not respond to the Confirmation Request within the time period set forth herein, the Confirmation Request shall be deemed denied and the Property identified in the Confirmation Request shall not be included as a Borrowing Base Asset.  If a Confirmation Request has been confirmed, the subject Property shall thereupon become a Borrowing Base Asset upon execution and delivery of all of the documents required to be provided under the immediately following subsection (c).  In no event shall a Property become a Borrowing Base Asset unless such Property has also become (or will simultaneously with such Property becoming a Borrowing Base Asset hereunder) a Borrowing Base Asset (as defined in the Revolving Credit Agreement).

 

(c)           No Property shall become a Borrowing Base Asset until the Borrowers shall have caused to be executed and delivered to the Agent the following (if not previously delivered to the Agent), each to be in form and substance satisfactory to the Agent:

 

(i)           The results of a recent UCC, tax, judgment, bankruptcy and lien search in each of the jurisdictions in which UCC financing statements or other filings or recordations should be made to evidence or perfect Liens in such Equity Interests;

 

(ii)           A supplement to the Pledge Agreement, executed by each Person that owns, directly or indirectly, any Equity Interests of the Property Subsidiary that owns or leases such Property, subjecting all such Equity Interests to the Lien of the Pledge Agreement, except to the extent that such Person (A) does not own a direct Equity Interest in any Property Subsidiary and (B) such Person owns a direct or indirect Equity Interest in a Subsidiary which owns Property that is not a Borrowing Base Property;

 

(iii)           Each document (including, without limitation, any UCC financing statement) and all actions required by the Pledge Agreement or under Applicable Law or reasonably deemed necessary or appropriate by the Agent to be entered into, filed, registered or recorded or taken, in order to create in favor of the Agent, for the benefit of the Lenders, a perfected first-priority Lien in such Equity Interest, shall have been entered into, filed, registered, recorded, taken or shall have been delivered to the Agent and be in proper form for filing, registration or recordation, as appropriate;

 

(iv)           If such Property Subsidiary or any Subsidiary that owns, directly or indirectly, any Equity Interests of such Property Subsidiary is not already a Guarantor, an Accession Agreement executed by each such Person;

 

(v)           Such information as the Agent or any Lender may request with respect to any Person becoming a Loan Party in connection with such Property becoming a Borrowing Base Asset, in order to comply with the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)); and

 

(vi)           All of the items that would have been required to be delivered to the Agent under Section 5.1.(a)(v) through (a)(ix), Section 5.1.(a)(xiv) and Section 5.1.(a)(xv) had any such Subsidiary been a Loan Party on the Effective Date.

 

  

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(d)           All determinations by the Agent and the Requisite Lenders as to whether to confirm any Confirmation Request shall be in their reasonable discretion.

 

(e)           Notwithstanding anything to the contrary in subsections (a) and (b) of this Section and without the Borrowers being required to provide a Confirmation Request Package or the Agent and Lenders’ confirming a Confirmation Request, each Property listed on Schedule 7.15.(e) (each a “ Designated Property”) shall be admitted as a Borrowing Base Asset hereunder at such time as (i) the Borrowers have obtained and provided to the Administrative Agent evidence that the Liens on such Designated Property as set forth on Schedule 6.1(f) have been released, (ii) the Borrowers certify that such Designated Property is an Eligible Unencumbered Property and complies with all of the representations and warranties applicable to such Property contained in Exhibit J hereto, and (iii) the requirements of Section 7.15(c) above have been satisfied with respect to such Designated Property and the Borrowers have provided a pro forma Borrowing Base Certificate inclusive of such Designated Property as a Borrowing Base Asset.

 

	
Section 7.16.

	
Removal of Borrowing Base Assets.

 

(a)           So long as no Default or Event of Default exists or would result therefrom, the Borrowers may from time to time elect to have a Property no longer considered to be a Borrowing Base Asset.  In such event, the Borrowers shall provide to the Agent written notice thereof (each a “Removal Request”) no later than 10:00 a.m. on the Business Day that is at least ten (10) Business Days prior to the date on which the Borrowers wish to have such Property no longer considered to be a Borrowing Base Asset, such Removal Request to (i) identify the Property to be no longer considered a Borrowing Base Asset, (ii) set forth the calculation of the amount of Availability attributable to such Borrowing Base Asset and the amount, if any, of any payment required by Section 2.7(b), and (iii) have attached thereto a pro forma Borrowing Base Certificate.  Subject to receipt by the Agent of any prepayment required by Section 2.7(b), and provided that no Default or Event of Default exists or would result therefrom, such Borrowing Base Asset shall cease to be a Borrowing Base Asset hereunder and the Agent shall provide prompt written notice of such removal to each Lender.  In no event shall a Property no longer be considered a Borrowing Base Asset unless such Property is also no longer considered (or will simultaneously with such Property ceasing to be considered a Borrowing Base Asset hereunder will cease to be considered) a Borrowing Base Asset (as defined in the Revolving Credit Agreement).

 

(b)           Notwithstanding any other provision of this Agreement or the other Loan Documents but subject at all times to the provisions of Sections 9.1, 9.3, 9.5, 9.6 and 9.7, the Agent and the Lenders acknowledge and agree that in the event any LRT Entity shall own a Property which is not intended to be a Borrowing Base Asset, such LRT Entity shall be permitted to sell, finance, encumber or otherwise transfer such Property without the approval of the Agent or the Lenders and without the requirement of any payment hereunder.

 

  

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Section 7.17.

	
Failure of Certain Borrowing Base Assets Representations and Warranties.

 

If at any time the Borrowers shall become aware that any Borrowing Base Asset has ceased to be an Eligible Unencumbered Property or that any representation or warranty set forth on Exhibit J hereto is no longer true and correct with respect to any Borrowing Base Asset, the Borrower Representative shall promptly notify the Agent in writing of such event, together with a detailed description of the factual circumstances giving rise thereto.  In such event, the Agent shall promptly provide a copy of such notice to the Lenders and may, and at the direction of the Requisite Lenders shall, require that such Borrowing Base Asset no longer be considered a Borrowing Base Asset. Upon the determination that a Property shall no longer be considered a Borrowing Base Asset, the provisions of Section 2.7(b) shall apply.

 

	
Section 7.18.

	
Article 8 Securities.

 

Notwithstanding any other provision contained in this Agreement or any other Loan Document, each Borrower hereby covenants and agrees with the Agent and the Lenders that from and after the date of this Agreement until the earlier of (a) the date this Agreement shall terminate in accordance with Section 12.10. or (b) the Release Date: (i) it will take no action (nor permit any Subsidiary to take any action) of any nature whatsoever for any of the Equity Interests in any Property Subsidiary or any other LRT Entity to be treated as “securities” within the meaning of, or governed by, Article 8 of the UCC; (ii) it will take no action (nor permit any Subsidiary to take any action) of any nature whatsoever to enter into, acknowledge or agree to a control agreement with respect to the Equity Interests of any Property Subsidiary or any other LRT Entity; and (iii) it will not (nor permit any Subsidiary to) consent to or permit the filing of financing statements with respect to Equity Interests in any Property Subsidiary or any other LRT Entity except for financing statements filed by the Agent pursuant to the Pledge Agreement and the Revolver Agent pursuant to the Pledge Agreement (as defined in the Revolving Credit Agreement).

 

ARTICLE VIII. - INFORMATION

 

For so long as this Agreement is in effect and any Obligations remain outstanding, unless the appropriate Lenders required pursuant to Section 12.6 shall otherwise consent in the manner set forth in Section 12.6, the Borrowers shall furnish to each Lender (or to the Agent if so provided below) at its Lending Office:

 

	
Section 8.1.

	
Quarterly Financial Statements.

 

As soon as available and in any event within 10 days after the same is required to be filed with the Securities and Exchange Commission (but in no event later than 55 days after the end of each of the first, second and third fiscal quarters of the Trust), the unaudited consolidated balance sheet of the Trust and its Subsidiaries as at the end of such period and the related unaudited consolidated statements of income and cash flows of the Trust and its Subsidiaries for such period, setting forth in each case in comparative form the figures as of the end of and for the corresponding periods of the previous fiscal year, all of which shall be in form and substance reasonably satisfactory to the Agent and shall be certified by the chief financial officer or chief accounting officer of the Trust, in his or her opinion, to present fairly, in accordance with GAAP and in all material respects, the consolidated financial position of the Trust and its Subsidiaries as at the date thereof and the results of operations for such period (subject to normal year-end audit adjustments); provided, however, the Borrowers shall not be required to deliver an item required under this Section if such item is contained in a Form 10-Q filed by the Trust with the Securities and Exchange Commission (or any Governmental Authority substituted therefor) and is publicly available to the Agent and the Lenders.

 

  

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Section 8.2.

	
Year-End Statements.

 

As soon as available and in any event within 10 days after the same is required to be filed with the Securities and Exchange Commission (but in no event later than 100 days after the end of each fiscal year of the Trust), the audited consolidated balance sheet of the Trust and its Subsidiaries as at the end of such fiscal year and the related audited consolidated statements of income, changes in shareholders’ equity and cash flows of the Trust and its Subsidiaries for such fiscal year, setting forth in comparative form the figures as at the end of and for the previous fiscal year, all of which shall be (a) in form and substance reasonably satisfactory to the Agent, (b) certified by the chief financial officer or chief accounting officer of the Trust, in his or her opinion, to present fairly, in accordance with GAAP and in all material respects, the consolidated financial position of the Trust and its Subsidiaries as at the date thereof and the results of operations for such period and (c) accompanied by the report thereon of independent certified public accountants of recognized national standing, whose certificate shall be without a “going concern” or like qualification or exception, or a qualification arising out of the scope of the audit, and who shall have authorized the Trust to deliver such financial statements and report to the Agent and the Lenders; provided, however, the Borrowers shall not be required to deliver an item required under this Section if such item is contained in a Form 10-K filed by the Trust with the Securities and Exchange Commission (or any Governmental Authority substituted therefor) and is publicly available to the Agent and the Lenders.

 

	
Section 8.3.

	
Compliance Certificate.

 

At the time financial statements are furnished pursuant to Sections 8.1 and 8.2, and if the Agent or the Requisite Lenders reasonably believe that a Default or Event of Default may exist or may be likely to occur, within 5 Business Days of the Agent’s request with respect to any other fiscal period, a certificate substantially in the form of Exhibit G (a “Compliance Certificate”) executed by the chief financial officer or chief accounting officer of the Trust: (a) setting forth in reasonable detail as at the end of such quarterly accounting period, fiscal year, or other fiscal period, as the case may be, the calculations required to establish whether or not the Borrowers were in compliance with the covenants contained in Sections 9.1, 9.2 and 9.4 and (b) stating that, to the best of his or her knowledge, information and belief after due inquiry, no Default or Event of Default exists, or, if such is not the case, specifying such Default or Event of Default and its nature, when it occurred, whether it is continuing and the steps being taken by the Borrowers with respect to such event, condition or failure.  Together with each Compliance Certificate delivered in connection with quarterly or annual financial statements, the Borrowers shall deliver a statement of Funds From Operations for the fiscal period then ending, in form and detail reasonably satisfactory to the Agent.

 

	
Section 8.4.

	
Other Information.

 

(a)           Management Reports.  Promptly upon receipt thereof, copies of all management reports, if any, submitted to any Borrower or its Board of Trustees/Directors by its independent public accountants;

 

  

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(b)           Securities Filings.  Prompt notice of the filing of all registration statements, reports on Forms 10-K, 10-Q and 8-K (or their equivalents) and all other periodic reports which any of the Borrowers, any other Loan Party or any other Subsidiary shall file with the Securities and Exchange Commission (or any Governmental Authority substituted therefor) or any national securities exchange, and promptly upon the filing thereof copies of any of the foregoing that is not publicly available to the Agent and the Lenders or that the Agent or any Lender may request;

 

(c)           Shareholder Information; Press Releases.  Promptly upon the mailing thereof to the shareholders of the Trust or Operating Partnership generally, copies of all financial statements, reports and proxy statements so mailed and promptly upon the issuance thereof copies of all press releases issued by any Borrower or any other Subsidiary to the extent not publicly available;

 

(d)           ERISA.  If and when any member of the ERISA Group (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of any such reportable event, a copy of the notice of such reportable event given or required to be given to the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent or has been terminated, a copy of such notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or makes any amendment to any Plan or Benefit Arrangement, and such failure or amendment has resulted or could reasonably be expected to result in the imposition of a Lien or the posting of a bond or other security, a certificate of a duly authorized executive of the Trust setting forth details as to such occurrence and the action, if any, which the Trust or applicable member of the ERISA Group is required or proposes to take;

 

(e)           Litigation.  To the extent any Borrower or any other Subsidiary is aware of the same, prompt notice of the commencement of any proceeding or investigation by or before any Governmental Authority and any action or proceeding in any court or other tribunal or before any arbitrator against or in any other way relating adversely to, or adversely affecting, any Borrower or any other Subsidiary or any of their respective properties, assets or businesses which could reasonably be expected to have a Material Adverse Effect, and prompt notice of the receipt of notice that any United States income tax returns of the Trust or any of its Subsidiaries are being audited, if such audit could reasonably be expected to have a Material Adverse Effect;

 

(f)           Change of Management or Financial Condition.  Prompt notice of any change in the senior management of the Trust or the Operating Partnership and any change in the business, assets, liabilities, financial condition, results of operations or business prospects of any Borrower or any other Subsidiary which has had or could reasonably be expected to have a Material Adverse Effect;

 

  

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(g)         Default.  Notice of the occurrence of any of the following promptly upon a Responsible Officer of the Trust obtaining knowledge thereof: (i) any Default or Event of Default or (ii) any event which constitutes or which with the passage of time, the giving of notice, or otherwise, would constitute a default or event of default by any Borrower or any other Subsidiary under any Material Contract to which any such Person is a party or by which any such Person or any of its respective properties may be bound;

 

(h)         Judgments.  Prompt notice of any order, judgment or decree in excess of $5,000,000.00 having been entered against any Borrower or any other Subsidiary or any of their respective properties or assets;

 

(i)           Material Asset Sales.  Prompt notice of the sale, transfer or other disposition of any material assets of any Borrower or any other Subsidiary to any Person other than a Borrower or another Subsidiary;

 

(j)           Patriot Act Information.  From time to time and promptly upon each request, information identifying any Borrower or any other Loan Party as a Lender may request in order to comply with the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001));

 

(k)          Change in Debt Rating.  Promptly, upon any change in the Trust’s Debt Rating, a certificate stating that the Trust’s Debt Rating has changed and the new Credit Rating that is in effect;

 

(l)           Borrowing Base Certificate.  A Borrowing Base Certificate (i) at the time financial statements are required to be furnished pursuant to Sections 8.1. and 8.2., provided to the extent such the delivery of any such financial statement is satisfied by the filing thereof with the Securities and Exchange Commission, in no event later than 55 days after the end of each of the first, second and third fiscal quarters of the Trust and 100 days after the end of each fiscal year of the Trust, and (ii) at any other time within 5 Business Days of the Agent’s reasonable request;

 

(m)         Ground Leases.  Upon submission of the annual financial statements as provided in Section 8.2 above, a schedule summarizing the material terms of all Ground Leases with respect to the Borrowing Base Assets, which schedule shall include, without limitation,  the remaining term of each such Ground Lease; and

 

(n)          Other Information.  From time to time and promptly upon each request, such data, certificates, reports, statements, opinions of counsel, documents or further information regarding the business, assets, liabilities, financial condition, results of operations or business prospects of any Borrower, any other Loan Party or any other Subsidiary as the Agent or any Lender may reasonably request.

 

  

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Section 8.5.

	
Frequency of Calculations of Availability.

 

Initially, Availability shall be the amount set forth as such in the Borrowing Base Certificate delivered under Section 5.1(a).  Thereafter, Availability shall be the amount set forth as such in the Borrowing Base Certificate delivered from time to time pursuant Section 2.1.(b), Section 7.15., Section 7.16. and Section 8.4.(l).

 

ARTICLE IX. - NEGATIVE COVENANTS

 

For so long as this Agreement is in effect and any Obligations remain outstanding, unless the appropriate Lenders required pursuant to Section 12.6 shall otherwise consent in the manner set forth in Section 12.6, the Borrowers shall comply with the following covenants:

 

	
Section 9.1.

	
Financial Covenants.

 

The Borrowers shall not permit:

 

(a)           Maximum Leverage Ratio.  The ratio (the “Leverage”) of (i) Total Indebtedness to (ii) Capitalized Value, to exceed 0.60 to 1.00 at any time.

 

(b)           Minimum Interest Expense Coverage Ratio.  The ratio of (i) Adjusted EBITDA of the Trust and its Subsidiaries determined on a consolidated basis for the period of two consecutive fiscal quarters of the Trust most recently ending to (ii) Interest Expense for such period, to be less than 1.50 to 1.00 at any time.

 

(c)           Minimum Fixed Charge Coverage Ratio.  The ratio of (i) Adjusted EBITDA for the period of two consecutive fiscal quarters of the Trust most recently ending to (ii) Fixed Charges for such period, to be less than 1.40 to 1.00 at any time.

 

(d)           Maximum Unsecured Indebtedness.  After the Release Date, the Unsecured Indebtedness of the Trust and its Subsidiaries determined on a consolidated basis shall not at any time exceed the Borrowing Base Value.

 

(e)           Maximum Recourse Secured Indebtedness Ratio.  The ratio of (i) Secured Indebtedness (excluding Nonrecourse Indebtedness, the Obligations and the Obligations (as defined in the Revolving Credit Agreement)) of the Trust and its Subsidiaries determined on a consolidated basis to (ii) Capitalized Value, to be greater than 0.10 to 1.00 at any time.

 

(f)           Maximum Secured Indebtedness Ratio.  After the Release Date, the ratio of (i) Secured Indebtedness of the Trust and its Subsidiaries determined on a consolidated basis to (ii) Capitalized Value, to be greater than 0.45 to 1.00 at any time.

 

(g)           Minimum Net Worth.  Tangible Net Worth at any time to be less than (i) $1,600,000,000 plus (ii) 75.0% of the Net Proceeds of all Equity Issuances effected by the Trust or any Subsidiary after September 30, 2011 (other than (x) Equity Issuances to the Trust or any Subsidiary and (y) Equity Issuances by the Trust or any Subsidiary, to the extent the proceeds thereof are used at the time of such Equity Issuance (or within twelve (12) months of such Equity Issuance) to redeem, repurchase or otherwise acquire or retire any other Equity Interest (other than Mandatorily Redeemable Stock) of the Trust or such Subsidiary, as the case may be).

 

  

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(h)           Floating Rate Indebtedness.  The ratio of (i) Floating Rate Indebtedness of the Trust and its Subsidiaries determined on a consolidated basis to (ii) Total Indebtedness, to exceed 0.35 to 1.00 at any time.

 

	
Section 9.2.

	
Restricted Payments.

 

The Trust shall not, and shall not permit any of its Subsidiaries to, declare or make any Restricted Payment; provided, however, that the Trust and its Subsidiaries may declare and make the following Restricted Payments so long as no Default or Event of Default would result therefrom:

 

(a)           the Operating Partnership may make cash distributions to the Trust and other holders of partnership interests in the Operating Partnership with respect to any fiscal year ending during the term of this Agreement to the extent necessary for the Trust to make, and the Trust may so make, cash distributions to its shareholders in an aggregate amount not to exceed the greater of (i) the amount required to be distributed for the Trust to maintain its status as a REIT or (ii) 95.0% of Funds From Operations calculated on a trailing twelve (12) month basis;

 

(b)           the Trust may make cash distributions to its shareholders of capital gains resulting from gains from certain asset sales to the extent necessary to avoid payment of taxes on such asset sales imposed under Sections 857(b)(3) and 4981 of the Internal Revenue Code;

 

(c)           any Borrower or any Subsidiary may acquire the Equity Interests of a Subsidiary that is not a Wholly Owned Subsidiary;

 

(d)           any Subsidiary (other than the Operating Partnership) that is not a Wholly Owned Subsidiary may make cash distributions to holders of Equity Interests issued by such Subsidiary;

 

(e)           Subsidiaries may pay Restricted Payments to the Trust or any other Subsidiary; and

 

(f)           An Operating Partnership or the Trust, as applicable, may exchange Equity Interests in such Operating Partnership for Equity Interests in the Trust.

 

Notwithstanding the foregoing, but subject to the following sentence, if a Default or Event of Default exists, the Operating Partnership may only make cash distributions to the Trust and other holders of partnership interests in the Operating Partnership, and the Trust may distribute to its shareholders such cash distributions received from the Operating Partnership, during any fiscal year in an aggregate amount not to exceed the minimum amount necessary for the Trust to maintain its status as a REIT.  If a Default or Event of Default specified in Section 10.1(a), Section 10.1(b), Section 10.1(f) or Section 10.1(g) shall exist, or if as a result of the occurrence of any other Event of Default any of the Obligations have been accelerated pursuant to Section 10.2(a), the Trust shall not, and shall not permit any Subsidiary to, make any Restricted Payments to any Person other than to the Trust or any Subsidiary that is a Loan Party.

 

  

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Section 9.3.

	
Indebtedness.

 

The Borrowers shall not, and shall not permit  any other Loan Party or any other Subsidiary to, incur, assume, or otherwise become obligated in respect of any Indebtedness after the Agreement Date if immediately prior to the assumption, incurring or becoming obligated in respect thereof, or immediately thereafter and after giving effect thereto, a Default or Event of Default is or would be in existence, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 9.1.  In no event shall a Property Subsidiary incur any Indebtedness with the exception of trade payables incurred and paid in the ordinary course of business.

 

	
Section 9.4.

	
Certain Permitted Investments.

 

The Borrowers shall not, and shall not permit any other Loan Party or any other Subsidiary to, make any Investment in or otherwise own the following items which would cause the aggregate value of such holdings of the Borrowers, the other Loan Parties and the other Subsidiaries to exceed the applicable limits set forth below:

 

(a)           Investments in Unconsolidated Affiliates and other Persons that are not Subsidiaries, such that the aggregate value of such Investments (determined in a manner consistent with the definition of Capitalized Value or, if not contemplated under the definition of Capitalized Value, as determined in accordance with GAAP) exceeds 25.0% of Capitalized Value at any time;

 

(b)           Unimproved Land, such that the current book value of all Unimproved Land exceeds 10.0% of Capitalized Value;

 

(c)           real property under construction such that the aggregate Construction Budget for all such real property exceeds 15.0% of Capitalized Value at any time;

 

(d)           Mortgage Receivables and other promissory notes, such that the aggregate book value of all such Mortgage Receivables and promissory notes exceeds 10.0% of Capitalized Value at any time; and

 

(e)           Properties leased under ground leases by any Borrower or any Subsidiary, as lessee, such that the current value (determined in accordance with the applicable provisions of the term “Capitalized Value”) of such Properties exceeds 20.0% of Capitalized Value at any time.

 

In addition to the foregoing limitations, the aggregate value of the items subject to the limitations in the preceding clauses (a) through (e) shall not exceed 40.0% of Capitalized Value at any time, and clauses (b) through (e) shall not exceed 20.0% of Capitalized Value at any time.

 

  

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Section 9.5.

	
Investments Generally.

 

The Borrowers shall not, and shall not permit any other Loan Party or any other Subsidiary to, directly or indirectly, acquire, make or purchase any Investment, or permit any Investment of such Person to be outstanding on and after the Agreement Date, other than the following:

 

(a)           Investments in Subsidiaries in existence on the Agreement Date and disclosed on Part I of Schedule 6.1.(b);

 

(b)           Investments to acquire Equity Interests of a Subsidiary or any other Person who after giving effect to such acquisition would be a Subsidiary, so long as in each case (i) immediately prior to such Investment, and after giving effect thereto, no Default or Event of Default is or would be in existence and (ii) if such Subsidiary is (or after giving effect to such Investment would become) a Guarantor or Property Subsidiary, the terms and conditions set forth in Section 7.15 are satisfied;

 

(c)           Investments permitted under Section 9.4;

 

(d)           Investments in Cash Equivalents;

 

(e)           intercompany Indebtedness among the Loan Parties and the Wholly Owned Subsidiaries of the Loan Parties provided that such Indebtedness is permitted by the terms of Section 9.3;

 

(f)           loans and advances to officers and employees for moving, entertainment, travel and other similar expenses in the ordinary course of business consistent with past practices; and

 

(g)           any other Investment so long as immediately prior to making such Investment, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence.

 

	
Section 9.6.

	
Liens; Negative Pledges; Other Matters.

 

(a)           The Borrowers shall not, and shall not permit any other Loan Party or any other Property Subsidiary to, create, assume, or incur any Lien (other than Permitted Liens) upon any of its properties, assets, income or profits of any character whether now owned or hereafter acquired if immediately prior to the creation, assumption or incurring of such Lien, or immediately thereafter, a Default or Event of Default is or would be in existence, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 9.1.  The Borrowers shall not, and shall not permit any other Loan Party or any other Property Subsidiary to, create, assume, or incur any Lien upon any direct or indirect Equity Interests of any Property Subsidiary (other than Permitted Liens of the types described in any of clauses (a), (e) and (f) of the definition of such term) or any Borrowing Base Asset (other than Permitted Liens of the types described in any of clauses (a), (c), (d), (e), (f) and (g) of the definition of such term).

 

  

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(b)           The Borrowers shall not, and shall not permit any other Loan Party or any other Property Subsidiary to, enter into, assume or otherwise be bound by any Negative Pledge except for a Negative Pledge contained in (i) an agreement (x) evidencing Indebtedness which such Borrower, Loan Party or Property Subsidiary may create, incur, assume, or permit or suffer to exist under Section 9.3, (y) which Indebtedness is secured by a Lien permitted to exist under the Loan Documents, and (z) which prohibits the creation of any other Lien on only the property securing such Indebtedness as of the date such agreement was entered into; (ii) in an agreement relating to the sale of a Property Subsidiary or assets pending such sale, provided that in any such case the Negative Pledge applies only to the Subsidiary or the assets that are the subject of such sale; or (iii) contained in the Revolving Credit Agreement or any other Loan Document (as defined in the Revolving Credit Agreement).

 

(c)           Except to the extent contained in the Revolving Credit Agreement or any other Loan Document (as defined in the Revolving Credit Agreement), the Borrowers shall not, and shall not permit any other Loan Party or any other Property Subsidiary to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Property Subsidiary to: (i) pay dividends or make any other distribution on any of such Property Subsidiary’s capital stock or other equity interests owned by a Borrower or any Property Subsidiary; (ii) pay any Indebtedness owed to a Borrower or any Property Subsidiary; (iii) make loans or advances to a Borrower or any Property Subsidiary; or (iv) transfer any of its property or assets to a Borrower or any Property Subsidiary.

 

	
Section 9.7.

	
Merger, Consolidation, Sales of Assets and Other Arrangements.

 

The Borrowers shall not, and shall not permit any other Loan Party or any other Property Subsidiary to: (i) enter into any transaction of merger or consolidation; (ii) liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); or (iii) convey, sell, lease, sublease, transfer or otherwise dispose of, in one transaction or a series of transactions, all or substantially all of its business or assets, whether now owned or hereafter acquired; provided, however, that:

 

(a)           any of the actions described in the immediately preceding clauses (i) through (iii) may be taken with respect to any Property Subsidiary or any other Loan Party (other than a Borrower) so long as immediately prior to the taking of such action, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence; notwithstanding the foregoing, any such Loan Party (other than a Borrower) may enter into a transaction of merger pursuant to which such Loan Party is not the survivor of such merger only if (i) the Borrowers shall have given the Agent and the Lenders at least 10 Business Days’ prior written notice of such merger, such notice to include a certification to the effect that immediately prior, and after giving effect, to such action, no Default or Event of Default is or would be in existence; (ii) if the survivor entity is a Guarantor within 5 Business Days of consummation of such merger, the survivor entity (if not already a Guarantor) shall have executed and delivered an assumption agreement in form and substance reasonably satisfactory to the Agent pursuant to which such survivor entity shall expressly assume all of such Loan Party’s Obligations under the Loan Documents to which it is a party; (iii) within 10 Business Days of consummation of such merger, the survivor entity delivers to the Agent the following: (A) items of the type referred to in Sections 5.1(a)(vi) through (ix) with respect to the survivor entity as in effect after consummation of such merger (if not previously delivered to the Agent and still in effect), (B) copies of all documents entered into by such Loan Party or the survivor entity to effectuate the consummation of such merger, including, but not limited to, articles of merger and the plan of merger, (C) copies, certified by the Secretary or Assistant Secretary (or other individual performing similar functions) of such Loan Party or the survivor entity, of all corporate and shareholder action authorizing such merger and (D) copies of any filings with the Securities and Exchange Commission in connection with such merger; and (iv) such Loan Party and the survivor entity each takes such other action and delivers such other documents, instruments, opinions and agreements as the Agent may reasonably request, including all documents required in order for the Lenders to complete any due diligence described in Section 12.13 below;

 

  

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(b)           the Borrowers, the other Loan Parties and the other Property Subsidiaries may lease and sublease their respective assets, as lessor or sublessor (as the case may be), in the ordinary course of their business;

 

(c)           a Person may merge with and into a Borrower so long as (i) such Borrower is the survivor of such merger, (ii) immediately prior to such merger, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence, and (iii) the Borrowers shall have given the Agent and the Lenders at least 10 Business Days’ prior written notice of such merger, such notice to include a certification as to the matters described in the immediately preceding clause (ii) (except that such prior notice shall not be required in the case of the merger of a Property Subsidiary with and into a Borrower); and

 

(d)           the Borrowers and the other Loan Parties may sell, transfer or dispose of assets among themselves, and the other Subsidiaries that are not Loan Parties may sell, transfer or dispose of assets among themselves or to a Borrower or other Loan Party.

 

	
Section 9.8.

	
Fiscal Year.

 

The Trust shall not change its fiscal year from that in effect as of the Agreement Date.

 

	
Section 9.9.

	
Modifications to Material Contracts.

 

The Borrowers shall not, and shall not permit any other Loan Party or any other Subsidiary to, enter into any amendment or modification to any Material Contract which could reasonably be expected to have a Material Adverse Effect.

 

	
Section 9.10.

	
Modifications of Organizational Documents.

 

The Borrowers shall not, and shall not permit any other Loan Party or any other Subsidiary to, amend, supplement, restate or otherwise modify its articles or certificate of incorporation, by-laws, operating agreement, declaration of trust, partnership agreement or other applicable organizational document if such amendment, supplement, restatement or other modification could reasonably be expected to have a Material Adverse Effect.

 

	
Section 9.11.

	
Transactions with Affiliates.

 

The Borrowers shall not, and shall not permit any other Loan Party or any other Subsidiary to, permit to exist or enter into, any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate (other than a Loan Party), except transactions in the ordinary course of and pursuant to the reasonable requirements of the business of  such Borrower, other Loan Party or other Subsidiary and upon fair and reasonable terms which are no less favorable to such Borrower, other Loan Party or other Subsidiary than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate.

 

  

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Section 9.12.

	
ERISA Exemptions.

 

The Borrowers shall not, and shall not permit any other Loan Party or any other Subsidiary to, permit any of its respective assets to become or be deemed to be “plan assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder.

 

ARTICLE X. - DEFAULT

 

	
Section 10.1.

	
Events of Default.

 

Each of the following shall constitute an Event of Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of Applicable Law or pursuant to any judgment or order of any Governmental Authority:

 

(a)           Default in Payment of Principal.  Any Borrower shall fail to pay when due (whether upon demand, at maturity, by reason of acceleration or otherwise) the principal of any of the Loans.

 

(b)           Default in Payment of Interest and Other Obligations.  Any Borrower shall fail to pay when due any interest on any of the Loans or any of the other payment Obligations owing by the Borrowers under this Agreement, any other Loan Document or the Fee Letter, or any other Loan Party shall fail to pay when due any payment Obligation owing by such other Loan Party under any Loan Document to which it is a party, and such failure shall continue for a period of 5 Business Days.

 

(c)           Default in Performance.  (i) Any Borrower shall fail to perform or observe any term, covenant, condition or agreement contained in Section 7.17, in Section 7.18, in Section 8.4(g) or in Article IX or (ii) any Borrower or any other Loan Party shall fail to perform or observe any term, covenant, condition or agreement contained in this Agreement or any other Loan Document to which it is a party and not otherwise mentioned in this Section and in the case of this clause (ii) only such failure shall continue for a period of 30 days after the earlier of (x) the date upon which a Responsible Officer of any Borrower or such other Loan Party obtains actual knowledge of such failure or (y) the date upon which any Borrower has received written notice of such failure from the Agent.

 

(d)           Misrepresentations.  Any written statement, representation or warranty made or deemed made by or on behalf of any Borrower or any other Loan Party under this Agreement or under any other Loan Document, or any amendment hereto or thereto, or in any other writing or statement at any time furnished or made or deemed made by or on behalf of any Borrower or any other Loan Party to the Agent or any Lender, shall at any time prove to have been incorrect or misleading, in light of the circumstances in which made or deemed made, in any material respect when furnished or made or deemed made.

 

  

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(e)           Indebtedness Cross-Default; Derivatives Contracts.

 

(i)           Any Borrower, any other Loan Party or any other Subsidiary shall fail to pay when due and payable, within any applicable grace or cure period, the principal of, or interest on, any Indebtedness (other than the Loans and Nonrecourse Indebtedness) having an aggregate outstanding principal amount at the time of default, in each case individually or in the aggregate with all other Indebtedness as to which such a failure exists, of $10,000,000.00 or more (all such Indebtedness being referred to as “Material Indebtedness”);

 

(ii)           (x) the maturity of any Material Indebtedness shall have been accelerated in accordance with the provisions of any indenture, contract or instrument evidencing, providing for the creation of or otherwise concerning such Material Indebtedness or (y) any Material Indebtedness shall have been required to be prepaid, repurchased, defeased or redeemed prior to the stated maturity thereof;

 

(iii)           any other event shall have occurred and be continuing which permits any holder or holders of Material Indebtedness, any trustee or agent acting on behalf of such holder or holders or any other Person, to accelerate the maturity of any such Material Indebtedness or require any such Material Indebtedness to be prepaid, repurchased, defeased or redeemed prior to its stated maturity;

 

(iv)           there occurs under any Derivatives Contract an Early Termination Date (as defined in such Derivatives Contract) resulting from (A) any event of default under such Derivatives Contract as to which any Loan Party is the Defaulting Party (as defined in such Derivatives Contract) or (B) any Termination Event (as so defined) under such Derivatives Contract as to which any Loan Party is an Affected Party (as so defined) and, in either event, the Derivatives Termination Value owed by any Loan Party as a result thereof is $10,000,000.00 or more; or

 

(v)           an Event of Default (as defined in the Revolving Credit Agreement) shall occur.

 

(f)           Voluntary Bankruptcy Proceeding.  Any Borrower, any other Loan Party or any other Subsidiary (other than a Subsidiary that, together with all other Subsidiaries then subject to a bankruptcy proceeding or other proceeding or condition described in this subsection or the immediately following subsection, does not account for more than $25,000,000.00 of Capitalized Value) shall:  (i) commence a voluntary case under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws (as now or hereafter in effect); (ii) file a petition seeking to take advantage of any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts; (iii) consent to, or fail to contest in a timely and appropriate manner, any petition filed against it in an involuntary case under such bankruptcy laws or other Applicable Laws or consent to any proceeding or action described in the immediately following subsection; (iv) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic or foreign; (v) admit in writing its inability to pay its debts as they become due; (vi) make a general assignment for the benefit of creditors; (vii) make a conveyance fraudulent as to creditors under any Applicable Law; or (viii) take any corporate or partnership action for the purpose of effecting any of the foregoing.

 

  

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(g)           Involuntary Bankruptcy Proceeding.  A case or other proceeding shall be commenced against any Borrower, any other Loan Party or any other Subsidiary (other than a Subsidiary that, together with all other Subsidiaries then subject to a bankruptcy proceeding or other proceeding or condition described in this subsection or the immediately preceding subsection, does not account for more than $25,000,000.00 of Capitalized Value) in any court of competent jurisdiction seeking:  (i) relief under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws (as now or hereafter in effect) or under any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts; or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of such Person, or of all or any substantial part of the assets, domestic or foreign, of such Person, and in the case of either clause (i) or (ii), such case or proceeding shall continue undismissed or unstayed for a period of 60 consecutive calendar days, or an order granting the remedy or other relief requested in such case or proceeding against such Borrower, such other Loan Party or such other Subsidiary (including, but not limited to, an order for relief under such Bankruptcy Code or such other federal bankruptcy laws) shall be entered.

 

(h)           Litigation; Enforceability.  Any Borrower or any other Loan Party shall (or shall attempt to) disavow, revoke or terminate any Loan Document to which it is a party or the Fee Letter or shall otherwise challenge or contest in any action, suit or proceeding in any court or before any Governmental Authority the validity or enforceability of any Loan Document or the Fee Letter, or any Loan Document or the Fee Letter shall cease to be in full force and effect (except as a result of the express terms thereof).

 

(i)           Judgment.  A judgment or order for the payment of money or for an injunction or other non-monetary relief shall be entered against any Borrower, any other Loan Party, or any other Subsidiary by any court or other tribunal and (i) such judgment or order shall continue for a period of 30 days without being paid, stayed or dismissed through appropriate appellate proceedings and (ii) either (A) the amount of such judgment or order for which insurance has not been acknowledged in writing by the applicable insurance carrier (or the amount as to which the insurer has denied liability) exceeds, individually or together with all other such outstanding judgments or orders entered against (x) in the case of the Borrowers and the other Loan Parties, $10,000,000.00 or (y) in the case of the other Subsidiaries, $25,000,000.00 or (B) in the case of an injunction or other non-monetary relief, such injunction, judgment or order could reasonably be expected to have a Material Adverse Effect.

 

(j)           Attachment.  A warrant, writ of attachment, execution or similar process shall be issued against any property of any Borrower, any other Loan Party or any other Subsidiary which (i) exceeds, individually or together with all other such warrants, writs, executions and processes, (x) against the Borrowers and other Loan Parties, $10,000,000.00 in amount or (y) against the other Subsidiaries, $25,000,000.00 in amount, and in any such case such warrant, writ, execution or process shall not be discharged, vacated, stayed or bonded for a period of 30 days; provided, however, that if a bond has been issued in favor of the claimant or other Person obtaining such warrant, writ, execution or process, the issuer of such bond shall execute a waiver or subordination agreement in form and substance satisfactory to the Agent pursuant to which the issuer of such bond subordinates its right of reimbursement, contribution or subrogation to the Obligations and waives or subordinates any Lien it may have on the assets of any Loan Party.

 

  

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(k)         ERISA.

 

(i)            Any ERISA Event shall have occurred that results or could reasonably be expected to result in liability to any member of the ERISA Group aggregating in excess of $10,000,000.00; or

 

(ii)           The “benefit obligation” of all Plans exceeds the “fair market value of plan assets” for such Plans by more than $10,000,000.00, all as determined, and with such terms defined, in accordance with FASB ASC 715.

 

(l)          Loan Documents.  An Event of Default (as defined therein) shall occur under any of the other Loan Documents.

 

(m)        Change of Control.

 

(i)           Any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person will be deemed to have “beneficial ownership” of all securities that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 20.0% of the total voting power of the then outstanding voting stock of the Trust other than Vornado Realty Trust and/or a “group” of which Vornado Realty Trust is a member; or

 

(ii)           During any period of 12 consecutive months ending after the Agreement Date, individuals who at the beginning of any such 12-month period constituted the Board of Trustees of the Trust (together with any new trustees whose election by such Board or whose nomination for election by the shareholders of the Trust was approved by a vote of a majority of the trustees then still in office who were either trustees at the beginning of such period or whose election or nomination for election was previously so approved but excluding any trustee whose initial nomination for, or assumption of office as, a trustee occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more trustee by any person or group other than a solicitation for the election of one or more trustee by or on behalf of the Board of Trustees) cease for any reason to constitute a majority of the Board of Trustees of the Trust then in office.

 

(n)         Liens. Any Lien purported to be created under any Loan Document shall cease to be, or shall be asserted by any Borrower or other Loan Party not to be, a valid and perfected Lien on any Collateral, with the priority required by the applicable Loan Documents and the Intercreditor Agreement, except as a result of (i) the sale or other disposition of the applicable Collateral in a transaction permitted under the Loan Documents, the (ii) the release of such Lien as a result of the occurrence of the Release Date hereunder.

 

  

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(o)          Intercreditor Agreement.  So long as any Obligations (as defined in the Revolving Credit Agreement) are outstanding, (i) the Intercreditor Agreement shall be asserted in writing by any Loan Party not to be, in whole or in part, legally valid, binding and enforceable against any party thereto (or against any Person on whose behalf any such party makes any covenants or agreements therein), or otherwise not be effective to create the rights and obligations purported to be created thereunder; or (ii) as a result of legal action of any Loan Party, the Obligations shall not have the priority contemplated by this Agreement, the other Loan Documents or the Intercreditor Agreement.

 

	
Section 10.2.

	
Remedies Upon Event of Default.

 

Upon the occurrence of an Event of Default the following provisions shall apply:

 

(a)          Acceleration; Termination of Facilities.

 

(i)           Automatic.  Upon the occurrence of an Event of Default specified in Section 10.1(f) or 10.1(g), (A)(1) the principal of, and all accrued interest on, the Loans and the Notes at the time outstanding and (2) all of the other Obligations, including, but not limited to, the other amounts owed to the Lenders and the Agent under this Agreement, the Notes or any of the other Loan Documents shall become immediately and automatically due and payable without presentment, demand, protest, or other notice of any kind, all of which are expressly waived by the Borrowers on behalf of themselves and the other Loan Parties and (B) all of the Commitments and the obligation of the Lenders to make Loans, shall all immediately and automatically terminate.

 

(ii)           Optional.  If any other Event of Default shall exist, the Agent may, and at the direction of the Requisite Lenders shall:  (A) declare (1) the principal of, and accrued interest on, the Loans and the Notes at the time outstanding and (2) all of the other Obligations, including, but not limited to, the other amounts owed to the Lenders and the Agent under this Agreement, the Notes or any of the other Loan Documents to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Borrowers on behalf of themselves and the other Loan Parties and (B) terminate the Commitments and the obligation of the Lenders to make Loans.

 

(b)          Loan Documents.  The Requisite Lenders may direct the Agent to, and the Agent if so directed shall, exercise any and all of its rights under any and all of the other Loan Documents.

 

(c)          Applicable Law.  The Requisite Lenders may direct the Agent to, and the Agent if so directed shall, exercise all other rights and remedies it may have under any Applicable Law.

 

(d)          Appointment of Receiver.  To the extent permitted by Applicable Law, the Agent and the Lenders shall be entitled to the appointment of a receiver for the assets and properties of the Loan Parties and the Property Subsidiaries, without notice of any kind whatsoever and without regard to the adequacy of any security for the Obligations or the solvency of any party bound for its payment, to take possession of all or any portion of the business operations of the Loan Parties and the Property Subsidiaries and to exercise such power as the court shall confer upon such receiver.

 

  

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Section 10.3.

	
Remedies Upon Default.

 

Upon the occurrence of a Default specified in Section 10.1(g), the Commitments shall immediately and automatically terminate.

 

	
Section 10.4.

	
Allocation of Proceeds.

 

If an Event of Default exists, all payments received by the Agent under any of the Loan Documents, in respect of any principal of or interest on the Obligations or any other amounts payable by the Borrowers or the other Loan Parties hereunder or thereunder, shall be applied in the following order and priority:

 

(a)           amounts due the Agent in respect of fees and expenses due under Section 12.2;

 

(b)           amounts due the Lenders in respect of fees and expenses due under Section 12.2, pro rata in the amount then due each Lender;

 

(c)           payments of interest on all Loans, to be applied for the ratable benefit of the Lenders;

 

(d)           payments of principal of all Loans, to be applied for the ratable benefit of the Lenders;

 

(e)           amounts due the Agent and the Lenders pursuant to Sections 11.7 and 12.9.;

 

(f)           payment of all other Obligations and other amounts due and owing by the Borrowers and the other Loan Parties under any of the Loan Documents, if any, to be applied for the ratable benefit of the Lenders; and

 

(g)           any amount remaining after application as provided above, shall be paid to the Borrowers or whomever else may be legally entitled thereto.

 

	
Section 10.5.

	
Performance by Agent.

 

If any Borrower or any other Loan Party shall fail to perform any covenant, duty or agreement contained in any of the Loan Documents, the Agent may, after notice to the Borrower Representative, perform or attempt to perform such covenant, duty or agreement on behalf of such Borrower or other Loan Party after the expiration of any cure or grace periods set forth herein.  In such event, the Borrowers shall, at the request of the Agent, promptly pay any amount reasonably expended by the Agent in such performance or attempted performance to the Agent, together with interest thereon at the applicable Post-Default Rate from the date of such expenditure until paid.  Notwithstanding the foregoing, neither the Agent nor any Lender shall have any liability or responsibility whatsoever for the performance of any obligation of any Borrower or any other Loan Party under this Agreement or any other Loan Document.

 

  

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Section 10.6.

	
Rights Cumulative.

 

(a)          Generally.     The rights and remedies of the Agent and the Lenders under this Agreement, each of the other Loan Documents and the Fee Letter shall be cumulative and not exclusive of any rights or remedies which any of them may otherwise have under Applicable Law.  In exercising their respective rights and remedies the Agent and the Lenders may be selective and no failure or delay by the Agent or any of the Lenders in exercising any right shall operate as a waiver of it, nor shall any single or partial exercise of any power or right preclude its other or further exercise or the exercise of any other power or right.

 

(b)          Enforcement by Agent.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Agent in accordance with Article XI. for the benefit of all the Lenders; provided that the foregoing shall not prohibit (i) the Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Agent) hereunder and under the other Loan Documents, (ii) any Lender from exercising setoff rights in accordance with Section 12.3 (subject to the terms of Section 3.3), or (iii) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Agent hereunder and under the other Loan Documents, then (x) the Requisite Lenders shall have the rights otherwise ascribed to the Agent pursuant to Article XI. and (y) in addition to the matters set forth in clauses (ii) and (iii) of the preceding proviso and subject to Section 3.3, any Lender may, with the consent of the Requisite Lenders, enforce any rights and remedies available to it and as authorized by the Requisite Lenders.

	
Section 10.7.

	
Marshaling; Payments Set Aside.

 

None of the Agent or any Lender shall be under any obligation to marshal any assets in favor of any Loan Party or any other party or against or in payment of any or all of the Obligations.  To the extent that any Loan Party makes a payment or payments to the Agent or any Lender, or the Agent or any Lender enforce any Liens or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such recovery, the Obligations, or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

  

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ARTICLE XI. - THE AGENT

 

	
Section 11.1.

	
Authorization and Action.

 

Each Lender hereby irrevocably appoints and authorizes the Agent to take such action as contractual representative on such Lender’s behalf and to exercise such powers under this Agreement and the other Loan Documents as are specifically delegated to the Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. Not in limitation of the foregoing, each Lender authorizes and directs the Agent to enter into the Loan Documents for the benefit of the Lenders.  Each Lender hereby agrees that, except as otherwise set forth herein, any action taken by the Requisite Lenders in accordance with the provisions of this Agreement or the Loan Documents, and the exercise by the Requisite Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders.  Nothing herein shall be construed to deem the Agent a trustee or fiduciary for any Lender or to impose on the Agent duties or obligations other than those expressly provided for herein.  Without limiting the generality of the foregoing, the use of the terms “Administrative Agent”, “Agent”, “agent” and similar terms in the Loan Documents with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law.  Instead, use of such terms is merely a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.  The Agent shall deliver to each Lender, promptly upon receipt thereof by the Agent, copies of each of the financial statements, certificates, notices and other documents delivered to the Agent pursuant to Article VIII. that the Borrowers are not otherwise required to deliver directly to the Lenders.  The Agent will furnish to any Lender, upon the request of such Lender, a copy (or, where appropriate, an original) of any non-confidential document, instrument, agreement, certificate or notice furnished to the Agent by any Borrower, any other Loan Party or any other Affiliate of any Borrower, pursuant to this Agreement or any other Loan Document not already delivered or otherwise made available to such Lender pursuant to the terms of this Agreement or any such other Loan Document.  As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of any of the Obligations), the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Requisite Lenders (or all of the Lenders if explicitly required under any other provision of this Agreement), and such instructions shall be binding upon all Lenders and all holders of any of the Obligations; provided, however, that, notwithstanding anything in this Agreement to the contrary, the Agent shall not be required to take any action which exposes the Agent to personal liability or which is contrary to this Agreement or any other Loan Document or Applicable Law.  Not in limitation of the foregoing, the Agent may exercise any right or remedy it or the Lenders may have under any Loan Document upon the occurrence of a Default or an Event of Default unless the Requisite Lenders have directed the Agent otherwise.  Without limiting the foregoing, no Lender shall have any right of action whatsoever against the Agent as a result of the Agent acting or refraining from acting under this Agreement or any of the other Loan Documents in accordance with the instructions of the Requisite Lenders, or where applicable, all the Lenders.

 

  

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Section 11.2.

	
Agent’s Reliance, Etc.

 

Notwithstanding any other provisions of this Agreement or any other Loan Documents, neither the Agent nor any of its directors, officers, agents, employees or counsel shall be liable for any action taken or not taken by it under or in connection with this Agreement or any other Loan Document, except for its or their own gross negligence or willful misconduct in connection with its duties expressly set forth herein or therein as determined by a court of competent jurisdiction in a final non-appealable judgment.  Without limiting the generality of the foregoing, the Agent may consult with legal counsel (including its own counsel or counsel for the Borrowers or any other Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts.  Neither the Agent nor any of its directors, officers, agents, employees or counsel: (a) makes any warranty or representation to any Lender or any other Person, or shall be responsible to any Lender or any other Person for any statement, warranty or representation made or deemed made by any Borrower, any other Loan Party or any other Person in or in connection with this Agreement or any other Loan Document; (b) shall have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or any other Loan Document or the satisfaction of any conditions precedent under this Agreement or any Loan Document on the part of the Borrowers or other Persons, or to inspect the property, books or records of any Borrower or any other Person; (c) shall be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document, any other instrument or document furnished pursuant thereto or any Collateral covered thereby or the perfection or priority of any Lien in favor of the Agent on behalf of the Lenders in any such Collateral; (d) shall have any liability in respect of any recitals, statements, certifications, representations or warranties contained in any of the Loan Documents or any other document, instrument, agreement, certificate or statement delivered in connection therewith; and (e) shall incur any liability under or in respect of this Agreement or any other Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which may be by telephone, telecopy or electronic mail) believed by it to be genuine and signed, sent or given by the proper party or parties.  The Agent may execute any of its duties under the Loan Documents by or through agents, employees or attorneys-in-fact and shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct in the selection of such agent or attorney-in-fact as determined by a court of competent jurisdiction in a final non-appealable judgment.

 

	
Section 11.3.

	
Notice of Defaults.

 

The Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or Event of Default unless the Agent has received notice from a Lender or a Borrower referring to this Agreement, describing with reasonable specificity such Default or Event of Default and stating that such notice is a “notice of default.”  If any Lender (excluding the Lender which is also serving as the Agent) becomes aware of any Default or Event of Default, it shall promptly send to the Agent such a “notice of default”.  Further, if the Agent receives such a “notice of default,” the Agent shall give prompt notice thereof to the Lenders.

 

  

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Section 11.4.

	
Wells Fargo as Lender.

 

Wells Fargo, as a Lender, shall have the same rights and powers under this Agreement and any other Loan Document as any other Lender and may exercise the same as though it were not the Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include Wells Fargo in each case in its individual capacity.  Wells Fargo and its Affiliates may each accept deposits from, maintain deposits or credit balances for, invest in, lend money to, act as trustee under indentures of, serve as financial advisor to, and generally engage in any kind of business with any Borrower, any other Loan Party or any other Affiliate thereof as if it were any other bank and without any duty to account therefor to the other Lenders.  Further, the Agent and any Affiliate may accept fees and other consideration from any Borrower and any other Loan Party for services in connection with this Agreement or otherwise without having to account for the same to the other Lenders.  The Lenders acknowledge that, pursuant to such activities, Wells Fargo or its Affiliates may receive information regarding the Borrowers, other Loan Parties, other Subsidiaries and other Affiliates (including information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them.

 

	
Section 11.5.

	
Approvals of Lenders.

 

All communications from the Agent to any Lender requesting such Lender’s determination, consent, approval or disapproval (a) shall be given in the form of a written notice to such Lender, (b) shall be accompanied by a description of the matter or issue as to which such determination, approval, consent or disapproval is requested, or shall advise such Lender where information, if any, regarding such matter or issue may be inspected, or shall otherwise describe the matter or issue to be resolved, (c) shall include, if reasonably requested by such Lender and to the extent not previously provided to such Lender, written materials and, as appropriate, a brief summary of all oral information provided to the Agent by the Borrowers in respect of the matter or issue to be resolved, and (d) shall include the Agent’s recommended course of action or determination in respect thereof.  Unless a Lender shall give written notice to the Agent that it specifically objects to the recommendation or determination of the Agent (together with a reasonable written explanation of the reasons behind such objection) within ten (10) Business Days (or such lesser or greater period as may be specifically required under the express terms of the Loan Documents) of receipt of such communication, such Lender shall be deemed to have conclusively approved of or consented to such recommendation or determination.

 

  

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Section 11.6.

	
Lender Credit Decision, Etc.

 

Each of the Lenders expressly acknowledges and agrees that neither the Agent nor any of its officers, directors, employees, agents, counsel, attorneys-in-fact or other Affiliates has made any representations or warranties to such Lender and that no act by the Agent hereafter taken, including any review of the affairs of any Borrower, any other Loan Party or any other Subsidiary or Affiliate, shall be deemed to constitute any such representation or warranty by the Agent to any Lender.  Each of the Lenders acknowledges that it has made its own credit and legal analysis and decision to enter into this Agreement and the transactions contemplated hereby, independently and without reliance upon the Agent, any other Lender or counsel to the Agent, or any of their respective officers, directors, employees, agents or counsel, and based on the financial statements of the Borrowers, the other Loan Parties, the other Subsidiaries and other Affiliates, and inquiries of such Persons, its independent due diligence of the business and affairs of the Borrowers, the other Loan Parties, the other Subsidiaries and other Persons, its review of the Loan Documents, the legal opinions required to be delivered to it hereunder, the advice of its own counsel and such other documents and information as it has deemed appropriate.  Each of the Lenders also acknowledges that it will, independently and without reliance upon the Agent, any other Lender or counsel to the Agent or any of their respective officers, directors, employees and agents, and based on such review, advice, documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under the Loan Documents.  The Agent shall not be required to keep itself informed as to the performance or observance by any Borrower or any other Loan Party of the Loan Documents or any other document referred to or provided for therein or to inspect the properties or books of, or make any other investigation of, any Borrower, any other Loan Party or any other Subsidiary.  Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Agent under this Agreement or any of the other Loan Documents, the Agent shall have no duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, financial and other condition or creditworthiness of any Borrower, any other Loan Party or any other Affiliate thereof which may come into possession of the Agent or any of its officers, directors, employees, agents, attorneys-in-fact or other Affiliates.  Each of the Lenders acknowledges that the Agent’s legal counsel in connection with the transactions contemplated by this Agreement is only acting as counsel to the Agent and is not acting as counsel to any Lender.

 

	
Section 11.7.

	
Indemnification of Agent.

 

Each Lender agrees to indemnify the Agent (to the extent not reimbursed by the Borrowers and without limiting the obligation of the Borrowers to do so) pro rata in accordance with such Lender’s respective Commitment Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, reasonable out-of-pocket costs and expenses of any kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against the Agent (in its capacity as Agent but not as a Lender) in any way relating to or arising out of the Loan Documents, any transaction contemplated hereby or thereby or any action taken or omitted by the Agent under the Loan Documents (collectively, “Indemnifiable Amounts”); provided, however, that no Lender shall be liable for any portion of such Indemnifiable Amounts to the extent resulting from the Agent’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment; provided, further, that no action taken in accordance with the directions of the Requisite Lenders (or all of the Lenders, if expressly required hereunder) shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section.  Without limiting the generality of the foregoing, each Lender agrees to reimburse the Agent (to the extent not reimbursed by the Borrowers and without limiting the obligation of the Borrowers to do so) promptly upon demand for its ratable share of any out-of-pocket expenses (including the reasonable fees and expenses of the counsel to the Agent) incurred by the Agent in connection with the preparation, negotiation, execution, administration, or enforcement (whether through negotiations, legal proceedings, or otherwise) of, or legal advice with respect to the rights or responsibilities of the parties under, the Loan Documents, any suit or action brought by the Agent to enforce the terms of the Loan Documents and/or collect any Obligations, any “lender liability” suit or claim brought against the Agent and/or the Lenders, and any claim or suit brought against the Agent and/or the Lenders arising under any Environmental Laws.  Such out-of-pocket expenses (including counsel fees) shall be advanced by the Lenders on the request of the Agent notwithstanding any claim or assertion that the Agent is not entitled to indemnification hereunder upon receipt of an undertaking by the Agent that the Agent will reimburse the Lenders if it is actually and finally determined by a court of competent jurisdiction that the Agent is not so entitled to indemnification.  The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder or under the other Loan Documents and the termination of this Agreement.  If the Borrowers shall reimburse the Agent for any Indemnifiable Amount following payment by any Lender to the Agent in respect of such Indemnifiable Amount pursuant to this Section, the Agent shall share such reimbursement on a ratable basis with each Lender making any such payment.

 

  

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Section 11.8.

	
Successor Agent.

 

The Agent may resign at any time as Agent under the Loan Documents by giving written notice thereof to the Lenders and the Borrower Representative.  Upon any such resignation, the Requisite Lenders shall have the right to appoint a successor Agent which appointment shall, provided no Default or Event of Default exists, be subject to the Borrower Representative’s approval, which approval shall not be unreasonably withheld or delayed (except that the Borrowers shall, in all events, be deemed to have approved each Lender and any of its Affiliates as a successor Agent).  If no successor Agent shall have been so appointed in accordance with the immediately preceding sentence, and shall have accepted such appointment, within 30 days after the current Agent’s giving of notice of resignation, then the current Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a Lender, if any Lender shall be willing to serve, and otherwise shall be an Eligible Assignee.  Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the current Agent, and the current Agent shall be discharged from its duties and obligations under the Loan Documents.  After any Agent’s resignation hereunder as Agent, the provisions of this Article XI shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under the Loan Documents.  Notwithstanding anything contained herein to the contrary, the Agent may assign its rights and duties under the Loan Documents to any of its Affiliates by giving the Borrower Representative and each Lender prior written notice.

 

	
Section 11.9.

	
Titled Agents.

 

Each of the Titled Agents in each such respective capacity, assumes no responsibility or obligation hereunder, including, without limitation, for servicing, enforcement or collection of any of the Loans, nor any duties as an agent hereunder for the Lenders.  The titles given to the Titled Agents are solely honorific and imply no fiduciary responsibility on the part of the Titled Agents to the Agent, any Lender, the Borrowers or any other Loan Party and the use of such titles does not impose on the Titled Agents any duties or obligations greater than those of any other Lender or entitle the Titled Agents to any rights other than those to which any other Lender is entitled.

 

  

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Section 11.10.

	
Collateral Matters.

 

(a)           Each Lender hereby authorizes the Agent, without the necessity of any notice to or further consent from any Lender, from time to time prior to an Event of Default, to take any action with respect to any Collateral or Loan Documents which may be necessary to perfect and maintain perfected the Liens upon the Collateral granted pursuant to any of the Loan Documents.

(b)           The Lenders hereby authorize the Agent, at its option and in its discretion, to release any Lien granted to or held by the Agent upon any Collateral (i) upon termination of the Commitments and indefeasible payment and satisfaction in full of all of the Obligations; (ii) as expressly permitted by, but only in accordance with, the terms of the applicable Loan Document; or (iii) if approved, authorized or ratified in writing by all Lenders as provided under Section 12.6(b)(vii).  Upon request by the Agent at any time, the Lenders will confirm in writing the Agent’s authority to release particular types or items of Collateral pursuant to this Section.

(c)           Upon any sale and transfer of Collateral which is expressly permitted pursuant to the terms of this Agreement, and upon at least five (5) Business Days’ prior written request by the Borrower Representative, the Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence the release of the Liens granted to the Agent for its benefit and the benefit of the Lenders herein or pursuant hereto upon the Collateral that was sold or transferred; provided, however, that (i) the Agent shall not be required to execute any such document on terms which, in the Agent’s opinion, would expose the Agent to liability or create any obligation or entail any consequence other than the release of such Liens without recourse or warranty and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any Liens upon (or obligations of any Borrower or any other Loan Party in respect of) all interests retained by any Borrower or any other Loan Party, including (without limitation) the proceeds of such sale or transfer, all of which shall continue to constitute part of the Collateral.  In the event of any sale or transfer of Collateral, or any foreclosure with respect to any of the Collateral, the Agent shall be authorized to deduct all of the expenses reasonably incurred by the Agent from the proceeds of any such sale, transfer or foreclosure.

(d)           The Agent shall have no obligation whatsoever to the Lenders or to any other Person to assure that the Collateral exists or is owned by any Borrower or any other Loan Party or is cared for, protected or insured or that the Liens granted to the Agent pursuant to any of the Loan Documents have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Agent in this Section or in any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Agent may act in any manner it may deem appropriate, in its sole discretion, and that the Agent shall have no duty or liability whatsoever to the Lenders, except to the extent resulting from its gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment.

 

  

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ARTICLE XII. - MISCELLANEOUS

 

	
Section 12.1.

	
Notices.

 

Unless otherwise provided herein, communications provided for hereunder shall be in writing and shall be mailed, telecopied or delivered as follows:

 

If to a Borrower:

 

Lexington Realty Trust

One Penn Plaza, Suite 4015

New York, New York 10119

Attn: Patrick Carroll

Telephone:        (212) 692-7215

Telecopy:          (212) 594-6600

 

With a copy to:

 

Post Heymann & Koffler LLP

Two Jericho Plaza, Wing A

Jericho, New York 11753

Attention:        David J. Heymann, Esquire

Telephone:      (516) 681-3636

Telecopy:        (516) 433-2777

 

If to the Agent:

 

Wells Fargo Bank, National Association

301 S. College Street

Charlotte, North Carolina  28288

Attn:  D. Bryan Gregory

Telephone:      (704) 715-5450

Telecopy:        (704) 383-6228

 

If to a Lender:

 

To such Lender’s address or telecopy number, as applicable, set forth in the applicable Administrative Questionnaire;

 

or, as to each party at such other address as shall be designated by such party in a written notice to the other parties delivered in compliance with this Section; provided a Lender shall only be required to give notice of any such other address to the Agent and the Borrower Representative.  All such notices and other communications shall be effective: (i) if mailed, when received; (ii) if telecopied, when transmitted; (iii) if hand delivered or sent by overnight courier, when delivered; or (iv) if delivered in accordance with Section 12.14. to the extent applicable; provided, however, that, in the case of the immediately preceding clauses (i), (ii) and (iii), non-receipt of any communication as of the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such communication.  Notwithstanding the immediately preceding sentence, all notices or communications sent to the Agent or any Lender under Article II shall be effective only when actually received by the intended addressee.  Neither the Agent nor any Lender shall incur any liability to the Borrowers or any other Loan Party (nor shall the Agent incur any liability to the Lenders) for acting upon any telephonic notice referred to in this Agreement which the Agent or such Lender, as the case may be, believes in good faith to have been given by a Person authorized to deliver such notice or for otherwise acting in good faith hereunder. Failure of a Person designated to get a copy of a notice to receive such copy shall not affect the validity of notice properly given to any other Person.

 

  

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Section 12.2.

	
Expenses.

 

The Borrowers agree (a) to pay or reimburse the Agent for all of its reasonable out-of-pocket costs and expenses actually incurred in connection with the preparation, negotiation, execution, delivery and administration of, and any amendment, supplement or modification to, any of the Loan Documents (including due diligence expenses and travel expenses relating to closing), and the consummation of the transactions contemplated thereby, including the reasonable fees and disbursements of counsel to the Agent and costs and expenses in connection with the use of IntraLinks, Inc. or other similar information transmission systems in connection with the Loan Documents, and of the Agent in obtaining CUSIP numbers, of the Agent in connection with the review of Properties for approval as Borrowing Base Assets and the Agent’s other activities under Section 7.15, including the cost of all appraisals obtained pursuant to such Section and the reasonable fees and disbursements of counsel to the Agent relating to all such activities, (b) to pay or reimburse the Agent and the Lenders for all their reasonable costs and expenses actually incurred in connection with the enforcement or preservation of any rights under the Loan Documents and the Fee Letter, including the reasonable fees and disbursements of their respective counsel (including the allocated fees and expenses of in-house counsel) and any payments in indemnification or otherwise payable by the Lenders to the Agent pursuant to the Loan Documents, (c) to pay, and indemnify and hold harmless the Agent and the Lenders from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any failure to pay or delay in paying, documentary, stamp, excise and other similar taxes, if any, which may be payable or determined to be payable in connection with the execution and delivery of any of the Loan Documents, or consummation of any amendment, supplement or modification of, or any waiver or consent under or in respect of, any Loan Document and (d) to the extent not already covered by any of the preceding subsections, to pay or reimburse the Agent and the Lenders for all their costs and expenses incurred in connection with any bankruptcy or other proceeding of the type described in Section 10.1(f) or 10.1(g), including the reasonable fees and disbursements of counsel to the Agent and any Lender, whether such fees and expenses are incurred prior to, during or after the commencement of such proceeding or the confirmation or conclusion of any such proceeding.  If the Borrowers shall fail to pay any amounts required to be paid by them pursuant to this Section, the Agent and/or the Lenders may pay such amounts on behalf of the Borrowers and either deem the same to be Loans outstanding hereunder or otherwise Obligations owing hereunder.  Upon the written request of the Borrower Representative, the Agent or any Lender requesting payment of any amounts under this Section shall provide the Borrowers with a statement setting forth in reasonable detail the basis for requesting such amounts.

 

  

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Section 12.3.

	
Setoff.

 

Subject to Section 3.3 and in addition to any rights now or hereafter granted under Applicable Law and not by way of limitation of any such rights, the Agent, each Lender and each Participant is hereby authorized by each Borrower, at any time or from time to time while an Event of Default exists, without prior notice to any Borrower or to any other Person, any such notice being hereby expressly waived, but in the case of a Lender or Participant subject to receipt of the prior written consent of the Requisite Lenders exercised in their sole discretion, to set off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Agent, such Lender or any Affiliate of the Agent or such Lender, to or for the credit or the account of any Borrower against and on account of any of the Obligations, irrespective of whether or not any or all of the Loans and all other Obligations have been declared to be, or have otherwise become, due and payable as permitted by Section 10.2, and although such obligations shall be contingent or unmatured.  Notwithstanding anything to the contrary in this Section, if any Defaulting Lender shall exercise any such right of setoff, all amounts so set off shall be paid over immediately to the Agent for further application in accordance with the provisions of Section 3.11. and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Agent and the Lenders.

 

	
Section 12.4.

	
Litigation; Jurisdiction; Other Matters; Waivers.

 

(a)           EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE BORROWERS, THE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT AND THE BORROWERS HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS AGREEMENT, THE NOTES, ANY OTHER LOAN DOCUMENT OR THE FEE LETTER OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG THE BORROWERS, THE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

  

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(b)           EACH OF THE BORROWERS IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE AGENT, ANY LENDER OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY OF THE BORROWERS OR ANY OF THE OTHER LOAN PARTIES OR THEIR RESPECTIVE PROPERTIES IN THE COURTS OF ANY JURISDICTION.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

 

(c)           THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS AND THE TERMINATION OF THIS AGREEMENT.

 

	
Section 12.5.

	
Successors and Assigns.

 

(a)           Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of the immediately following subsection (b), (ii) by way of participation in accordance with the provisions of the immediately following subsection (d) or (iii) by way of pledge or assignment of a security interest subject to the restrictions of the immediately following subsection (f) (and, subject to the last sentence of the immediately following subsection (b), any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in the immediately following subsection (d) and, to the extent expressly contemplated hereby, the Related Parties of the Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

  

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(b)           Assignments by Lenders.  Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that any such assignment shall be subject to the following conditions:

(i)          Minimum Amounts.

(A)           in the case of an assignment of the entire remaining amount of an  assigning Lender’s Commitment and/or the Loans at the time owing to it, contemporaneous assignments to related Approved Funds that equal at least the amount specified in the immediately following clause (B) in the aggregate, or an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

(B)           in any case not described in the immediately preceding subsection (A), the aggregate amount of the Commitment (which for this purpose includes outstanding Loans made by a Lender in respect of its Commitment) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (in each case, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless each of the Agent and, so long as no Default or Event of Default shall exist, the Borrower Representative otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that if, after giving effect to such assignment, the amount of the Commitment held by such assigning Lender or the outstanding principal balance of the Loans of such assigning Lender, as applicable, would be less than $5,000,000, then such assigning Lender shall assign the entire amount of its Commitment and Loans at the time owing to it.

(ii)           Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment assigned.

(iii)          Required Consents.  No consent shall be required for any assignment except to the extent required by clause (i)(B) of this subsection (b) and, in addition:

(A)           the consent of the Borrowers (such consent not to be unreasonably withheld or delayed) shall be required unless (x) a Default or Event of Default shall exist at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrowers shall be deemed to have consented to any such assignment unless the Borrower Representative shall object thereto by written notice to the Agent within 5 Business Days after having received notice thereof; and

 

  

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(B)           the consent of the Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (x) a Commitment if such assignment is to a Person that is not already a Lender with a Commitment, an Affiliate of such a Lender or an Approved Fund with respect to such a Lender or (y) a Loan to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund.

(iv)          Assignment and Acceptance; Notes.  The parties to each assignment shall execute and deliver to the Agent an Assignment and Assumption, together with a processing and recordation fee of $4,500 for each assignment (which fee the Agent may, in its sole discretion, elect to waive), and the assignee, if it is not a Lender, shall deliver to the Agent an Administrative Questionnaire.  If requested by the transferor Lender or the assignee, upon the consummation of any assignment, the transferor Lender, the Agent and the Borrowers shall make appropriate arrangements so that new Notes are issued to the assignee and such transferor Lender, as appropriate.

(v)           No Assignment to Certain Persons.  No such assignment shall be made to (A) any Borrower or any of the Affiliates or Subsidiaries of any Borrower or (B) to any Defaulting Lender or any of its Subsidiaries, or to any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).

(vi)          No Assignment to Natural Persons.  No such assignment shall be made to a natural person.

(vii)         Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower Representative and the Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agent and each Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with its Commitment Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

 

  

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Subject to acceptance and recording thereof by the Agent pursuant to the immediately following subsection (c), from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 4.4., 12.2. and 12.9. and the other provisions of this Agreement and the other Loan Documents as provided in Section 12.10. with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with the immediately following subsection (d).

(c)           Register.  The Agent, acting solely for this purpose as an agent of the Borrowers, shall maintain at the Principal Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrowers, the Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrowers and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

  

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(d)           Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrowers or the Agent, sell participations to any Person (other than a natural Person or any Borrower or any of the Affiliates or Subsidiaries of any Borrower) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrowers, the Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to (w) increase such Lender’s Commitment, (x) extend the date fixed for the payment of principal on the Loans or portions thereof owing to such Lender, (y) reduce the rate at which interest is payable thereon or (z) release any Guarantor from its Obligations under the Guaranty or any Collateral.  The Borrowers agree that each Participant shall be entitled to the benefits of Sections 3.12., 4.1., 4.4. (subject to the requirements and limitations therein, including the requirements under Section 3.12.(c) (it being understood that the documentation required under Section 3.12.(c) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 4.5. as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 4.1. or 3.12., with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Regulatory Change that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower Representative’s request and expense, to use reasonable efforts to cooperate with the Borrowers to effectuate the provisions of Section 4.5. with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 12.3. as though it were a Lender; provided that such Participant agrees to be subject to Section 3.3. as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrowers, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.

 

(e)           Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

(f)           No Registration.  Each Lender agrees that, without the prior written consent of the Borrowers and the Agent, it will not make any assignment hereunder in any manner or under any circumstances that would require registration or qualification of, or filings in respect of, any Loan or Note under the Securities Act or any other securities laws of the United States of America or of any other jurisdiction.

 

	
Section 12.6.

	
Amendments.

 

(a)           Except as otherwise expressly provided in this Agreement, any consent or approval required or permitted by this Agreement or any other Loan Document to be given by the Lenders may be given, and any term of this Agreement or of any other Loan Document may be amended, and the performance or observance by any Borrower or any other Loan Party or any other Subsidiary of any terms of this Agreement or such other Loan Document 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 Requisite Lenders (or the Agent at the written direction of the Requisite Lenders) and, in the case of an amendment to any Loan Document, the written consent of each Loan Party a party thereto.

 

  

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(b)           In addition to the foregoing requirements, no amendment, waiver or consent shall, unless in writing, and signed by each of the Lenders directly and adversely affected thereby (or the Agent at the written direction of such Lenders), do any of the following:

 

(i)           increase the Commitments of the Lenders or subject the Lenders to any additional obligations;

 

(ii)          reduce the principal of, or interest that has accrued or the rates of interest that will be charged on the outstanding principal amount of, any Loans or other Obligations;

 

(iii)         reduce the amount of any Fees payable hereunder or postpone any date fixed for payment thereof;

 

(iv)         modify the definition of the term “Availability Termination Date” or “Termination Date” or otherwise postpone any date fixed for any payment of any principal of, or interest on, any Loans or any other Obligations (including the waiver of any Default or Event of Default as a result of the nonpayment of any such Obligations as and when due);

 

(v)         amend or otherwise modify the provisions of Section 3.2;

 

(vi)         modify the definition of the terms “Commitment Percentage” or “Requisite Lenders” or otherwise modify in any other manner the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof, including without limitation, any modification of this Section 12.6 if such modification would have such effect;

 

(vii)         release any Guarantor from its obligations under the Guaranty (except as otherwise permitted under Section 7.12) or release any of the Collateral (except as otherwise expressly permitted under this Agreement or the Pledge Agreement) or subordinate any Lien of the Agent in any Collateral;

 

(viii)       amend or otherwise modify the provisions of Section 2.14;

 

(ix)         amend the definition of Defaulting Lender or Section 3.11;

 

(x)          amend the definition of Eligible Assignee or Section 12.5 which imposes additional restrictions on  the ability of any Lender to assign or participate its Commitment; or

 

  

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(xi)         increase the number of Interest Periods permitted with respect to Loans under Section 2.5.

 

(c)           No amendment, waiver or consent, unless in writing and signed by the Agent, in such capacity, in addition to the Lenders required hereinabove to take such action, shall affect the rights or duties of the Agent under this Agreement or any of the other Loan Documents.   Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that (a) the Commitment of such Lender may not be increased or extended without the consent of such Lender, and (b) no such amendment, waiver or consent may uniquely and negatively impact such Defaulting Lender without the approval of such Defaulting Lender.

 

(d)           No waiver shall extend to or affect any obligation not expressly waived or impair any right consequent thereon and any amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose set forth therein.  Except as otherwise provided in Section 11.5, no course of dealing or delay or omission on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.  Any Event of Default occurring hereunder shall continue to exist until such time as such Event of Default is waived in writing in accordance with the terms of this Section, notwithstanding any attempted cure or other action by any Borrower, any other Loan Party or any other Person subsequent to the occurrence of such Event of Default.  Except as otherwise explicitly provided for herein or in any other Loan Document, no notice to or demand upon the Borrowers shall entitle the Borrowers to any other or further notice or demand in similar or other circumstances.

 

(e)           If, in connection with any proposed change, waiver, discharge, termination or other action under the provisions of this Agreement that requires approval of all Lenders or the Requisite Lenders, and the consent of one or more of such other Lenders whose consent is required is not obtained, then the Agent shall have the right (but not the obligation) in its sole and absolute discretion to purchase the Commitment (or if the Commitments have terminated, the Loans) of such non-consenting Lender or Lenders upon payment to such non-consenting Lender(s) in full of the principal of and interest accrued on each Loan made by it and all other amounts owing to it or accrued for its account under this Agreement.  Upon any such purchase or assignment, the non-consenting Lender’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 except to the extent assigned pursuant to such purchase) shall terminate on the date of purchase, and the non-consenting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest to the purchaser or assignee thereof, including an appropriate Assignment and Assumption.

 

	
Section 12.7.

	
Nonliability of Agent and Lenders.

 

The relationship between the Borrowers, on the one hand, and the Lenders and the Agent, on the other hand, shall be solely that of borrower and lender.  Neither the Agent nor any Lender shall have any fiduciary responsibilities to the Borrowers and no provision in this Agreement or in any of the other Loan Documents, and no course of dealing between or among any of the parties hereto, shall be deemed to create any fiduciary duty owing by the Agent or any Lender to any Lender, any Borrower, any other Loan Party or any other Subsidiary.  Neither the Agent nor any Lender undertakes any responsibility to the Borrowers to review or inform the Borrowers of any matter in connection with any phase of the Borrowers’ business or operations.

 

  

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Section 12.8.

	
Confidentiality.

 

Except as otherwise provided by Applicable Law, the Agent and each Lender shall maintain the confidentiality of all Information (as defined below) in accordance with its customary procedure for handling confidential information of this nature and in accordance with safe and sound banking practices but in any event may make disclosure: (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any actual or proposed assignee, Participant or other transferee in connection with a potential transfer of any Commitment or participation therein as permitted hereunder, or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to a Borrower or any of its Obligations; (c) as required or requested by any Governmental Authority or representative thereof or pursuant to legal process or in connection with any legal proceedings, or as otherwise required by Applicable Law; (d) to the Agent’s or such Lender’s independent auditors and other professional advisors (provided they shall be notified of the confidential nature of the information); (e) in connection with the exercise of any remedies under any Loan Document or any action or proceeding relating to any Loan Document or the enforcement of rights hereunder or thereunder; (f) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section actually known by the Agent or such Lender to be a breach of this Section or (ii) becomes available to the Agent, any Lender or any Affiliate of the Agent or any Lender on a nonconfidential basis from a source other than any Borrower or any Affiliate of any Borrower; (g) to the extent requested by, or required to be disclosed to, any nationally recognized rating agency or regulatory or similar authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners) having or purporting to have jurisdiction over it; (h) to bank trade publications, such information to consist of deal terms and other information customarily found in such publications; (i) to any other party hereto; and (j) with the consent of any Borrower.  Notwithstanding the foregoing, the Agent and each Lender may disclose any such confidential information, without notice to any Borrower or any other Loan Party, to Governmental Authorities in connection with any regulatory examination of the Agent or such Lender or in accordance with the regulatory compliance policy of the Agent or such Lender.  As used in this Section, the term “Information” means all information received from any Borrower, any other Loan Party, any other Subsidiary or Affiliate relating to any Loan Party or any of their respective businesses, other than any such information that is available to the Agent or any Lender on a nonconfidential basis prior to disclosure by any Borrower, any other Loan Party, any other Subsidiary or any Affiliate, provided that, in the case of any such information received from any Borrower, any other Loan Party, any other Subsidiary or any Affiliate after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

  

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Section 12.9.

	
Indemnification.

 

(a)           The Borrowers shall and hereby agree to indemnify, defend and hold harmless the Agent, each of the Lenders, any Affiliate of the Agent or any Lender, and their respective directors, officers, shareholders, agents, employees and counsel (each referred to herein as an “Indemnified Party”) from and against any and all of the following (collectively, the “Indemnified Costs”):  losses, costs, claims, damages, liabilities, deficiencies, judgments or reasonable expenses of every kind and nature (including, without limitation, amounts paid in settlement, court costs and the reasonable fees and disbursements of counsel incurred in connection with any litigation, investigation, claim or proceeding or any advice rendered in connection therewith, but excluding Indemnified Costs indemnification in respect of which is specifically covered by Section 3.12 or 4.1 or expressly excluded from the coverage of such Section 3.12 or 4.1) incurred by an Indemnified Party in connection with, arising out of, or by reason of, any suit, cause of action, claim, arbitration, investigation or settlement, consent decree or other proceeding (the foregoing referred to herein as an “Indemnity Proceeding”) which is in any way related directly or indirectly to: (i) this Agreement or any other Loan Document or the transactions contemplated thereby; (ii) the making of any Loans hereunder; (iii) any actual or proposed use by any Borrower of the proceeds of the Loans; (iv) the Agent’s or any Lender’s entering into this Agreement; (v) the fact that the Agent and the Lenders have established the credit facility evidenced hereby in favor of the Borrowers; (vi) the fact that the Agent and the Lenders are creditors of the Borrowers and have or are alleged to have information regarding the financial condition, strategic plans or business operations of the Trust and the Subsidiaries; (vii) the fact that the Agent and the Lenders are material creditors of the Borrowers and are alleged to influence directly or indirectly the business decisions or affairs of the Borrowers and the other Subsidiaries or their financial condition; (viii) the exercise of any right or remedy the Agent or the Lenders may have under this Agreement or the other Loan Documents, including but not limited to, the foreclosure upon, or seizure of, any Collateral or exercise of any other rights of a secured party; (ix) any civil penalty or fine assessed by the OFAC against, and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof by, the Agent or any Lender as a result of conduct of any Borrower, any other Loan Party or any Subsidiary that violates a sanction administered or enforced by the OFAC; or (x) any violation or non-compliance by any Borrower or any Subsidiary of any Applicable Law (including any Environmental Law) including, but not limited to, any Indemnity Proceeding commenced by (A) the Internal Revenue Service or state taxing authority or (B) any Governmental Authority or other Person under any Environmental Law, including any Indemnity Proceeding commenced by a Governmental Authority or other Person seeking remedial or other action to cause the Trust or its Subsidiaries (or its respective properties) (or the Agent and/or the Lenders as successors to any Borrower) to be in compliance with such Environmental Laws; provided, however, that the Borrowers shall not be obligated to indemnify any Indemnified Party for any acts or omissions of such Indemnified Party in connection with matters described in this subsection to the extent arising from the gross negligence or willful misconduct of such Indemnified Party, as determined by a court of competent jurisdiction in a final, non-appealable judgment.

 

  

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(b)           The Borrowers’ indemnification obligations under this Section12.9 shall apply to all Indemnity Proceedings arising out of, or related to, the foregoing whether or not an Indemnified Party is a named party in such Indemnity Proceeding.  In this regard, this indemnification shall cover all Indemnified Costs of any Indemnified Party in connection with any deposition of any Indemnified Party or compliance with any subpoena (including any subpoena requesting the production of documents).  This indemnification shall, among other things, apply to any Indemnity Proceeding commenced by other creditors of any Borrower or any Subsidiary, any shareholder of any Borrower or any Subsidiary (whether such shareholder(s) are prosecuting such Indemnity Proceeding in their individual capacity or derivatively on behalf of any Borrower), any account debtor of any Borrower or any Subsidiary or by any Governmental Authority. If indemnification is to be sought hereunder by an Indemnified Party, then such Indemnified Party shall notify the Borrowers of the commencement of any Indemnity Proceeding; provided, however, that the failure to so notify the Borrowers shall not relieve the Borrowers from any liability that they may have to such Indemnified Party pursuant to this Section 12.9.

 

(c)           This indemnification shall apply to any Indemnity Proceeding arising during the pendency of any bankruptcy proceeding filed by or against any Borrower and/or any Subsidiary.

 

(d)           All out-of-pocket fees and expenses of, and all amounts paid to third-persons by, an Indemnified Party shall be advanced by the Borrowers at the request of such Indemnified Party notwithstanding any claim or assertion by the Borrowers that such Indemnified Party is not entitled to indemnification hereunder, upon receipt of an undertaking by such Indemnified Party that such Indemnified Party will reimburse the Borrowers if it is actually and finally determined by a court of competent jurisdiction that such Indemnified Party is not so entitled to indemnification hereunder.

 

(e)           An Indemnified Party may conduct its own investigation and defense of, and may formulate its own strategy with respect to, any Indemnity Proceeding covered by this Section and, as provided above, all Indemnified Costs incurred by such Indemnified Party shall be reimbursed by the Borrowers.  No action taken by legal counsel chosen by an Indemnified Party in investigating or defending against any such Indemnity Proceeding shall vitiate or in any way impair the obligations and duties of the Borrowers hereunder to indemnify and hold harmless each such Indemnified Party; provided, however, that if (i) the Borrowers are required to indemnify an Indemnified Party pursuant hereto and (ii) the Borrowers have provided evidence reasonably satisfactory to such Indemnified Party that the Borrowers have the financial wherewithal to reimburse such Indemnified Party for any amount paid by such Indemnified Party with respect to such Indemnity Proceeding, such Indemnified Party shall not settle or compromise any such Indemnity Proceeding without the prior written consent of the Borrowers (which consent shall not be unreasonably withheld or delayed). Notwithstanding the foregoing, an Indemnified Party may settle or compromise any such Indemnity Proceeding without the prior written consent of the Borrowers where (x) no monetary relief is sought against such Indemnified Party in such Indemnity Proceeding or (y) there is an allegation of a violation of law by such Indemnified Party.

 

  

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(f)           If and to the extent that the obligations of the Borrowers under this Section are unenforceable for any reason, the Borrowers hereby agree to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under Applicable Law.

 

(g)           The Borrowers’ obligations under this Section shall survive any termination of this Agreement and the other Loan Documents and the payment in full in cash of the Obligations, and are in addition to, and not in substitution of, any other of their obligations set forth in this Agreement or any other Loan Document to which it is a party.

 

	
Section 12.10.

	
Termination; Survival.

 

This Agreement shall terminate at such time as (a) all of the Commitments have been terminated, (b) none of the Lenders is obligated any longer under this Agreement to make any Loans and (c) all Obligations (other than obligations which survive as provided in the following sentence) have been paid and satisfied in full,.  The indemnities to which the Agent and the Lenders are entitled under the provisions of Sections 3.12, 4.1, 4.4, 11.7, 12.2 and 12.9 and any other provision of this Agreement and the other Loan Documents, and the provisions of Section 12.4, shall continue in full force and effect and shall protect the Agent and the Lenders (i) notwithstanding any termination of this Agreement, or of the other Loan Documents, against events arising after such termination as well as before and (ii) at all times after any such party ceases to be a party to this Agreement with respect to all matters and events existing on or prior to the date such party ceased to be a party to this Agreement.

 

	
Section 12.11.

	
Severability of Provisions.

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions or affecting the validity or enforceability of such provision in any other jurisdiction.

 

	
Section 12.12.

	
GOVERNING LAW.

 

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE (INCLUDING, FOR SUCH PURPOSE, SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAWS OF THE STATE OF NEW YORK).

 

	
Section 12.13.

	
Patriot Act.

 

The Lenders and the Agent each hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the name and address of the Borrowers and other information that will allow such Lender or the Agent, as applicable, to identify the Borrowers in accordance with such Act.

 

  

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Section 12.14.

	
Electronic Delivery of Certain Information.

 

(a)           Documents required to be delivered pursuant to the Loan Documents shall be delivered by electronic communication and delivery, including, the Internet, e-mail or intranet websites to which the Agent and each Lender have access (including a commercial, third-party website such as www.sec.gov <http://www.sec.gov> or a website sponsored or hosted by the Agent or the Borrowers) provided that the foregoing shall not apply to (i) notices to any Lender pursuant to Article II. and (ii) any Lender that has notified the Agent and the Borrowers that it cannot or does not want to receive electronic communications.  The Agent or the Borrowers may, in their discretion, agree to accept notices and other communications to them hereunder by electronic delivery pursuant to procedures approved by them for all or particular notices or communications.  Documents or notices delivered electronically shall be deemed to have been delivered twenty-four (24) hours after the date and time on which the Agent or the Borrowers post such documents or the documents become available on a commercial website and the Agent or Borrowers notify each Lender of said posting and provides a link thereto provided if such notice or other communication is not sent or posted during the normal business hours of the recipient, said posting date and time shall be deemed to have commenced as of  10:00 a.m. Eastern time on the opening of business on the next business day for the recipient.  Subject to Section 12.8, no Indemnified Party shall be liable for any damages arising from the use by third parties of any information or other materials obtained by such third party through IntraLinks or other similar information transmission systems in connection with this Agreement.  Notwithstanding anything contained herein, in every instance the Borrowers shall be required to provide paper copies of the certificate required by Section 8.3. to the Agent and shall deliver paper copies of any documents to the Agent or to any Lender that requests such paper copies until a written request to cease delivering paper copies is given by the Agent or such Lender.  Except for the certificates required by Section 8.3., the Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents delivered electronically, and in any event shall have no responsibility to monitor compliance by the Borrowers with any such request for delivery.  Each Lender shall be solely responsible for requesting delivery to it of paper copies and maintaining its paper or electronic documents.

 

(b)           Documents required to be delivered pursuant to Article II. may be delivered electronically to a website provided for such purpose by the Agent pursuant to the procedures provided to the Borrowers by the Agent.

 

	
Section 12.15.

	
Public/Private Information.

 

The Borrowers shall cooperate with the Agent in connection with the publication of certain materials and/or information provided by or on behalf of the Borrowers.  Documents required to be delivered pursuant to the Loan Documents shall be delivered by or on behalf of the Borrowers to the Agent and the Lenders (collectively, “Information Materials”) pursuant to Article VIII and the Borrowers shall designate Information Materials (a) that are either available to the public or not material with respect to the Borrowers and their Subsidiaries or any of their respective securities for purposes of United States federal and state securities laws, as “Public Information” and (b) that are not Public Information as “Private Information”.

 

  

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Section 12.16.

	
Counterparts.

 

To facilitate execution, this Agreement and any amendments, waivers, consents or supplements may be executed in any number of counterparts as may be convenient or required (which may be effectively delivered by facsimile, in portable document format (“PDF”) or other similar electronic means).  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.

 

	
Section 12.17.

	
Obligations with Respect to Loan Parties.

 

The obligations of a Borrower to direct or prohibit the taking of certain actions by the other Loan Parties as specified herein shall be absolute and not subject to any defense such Borrower may have that such Borrower does not control such Loan Parties.

 

	
Section 12.18.

	
Independence of Covenants.

 

All covenants hereunder shall be given in any jurisdiction independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or be otherwise within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

	
Section 12.19.

	
Limitation of Liability.

 

Neither the Agent nor any Lender, nor any Affiliate, officer, director, employee, attorney, or agent of the Agent or any Lender shall have any liability with respect to, and the Borrowers hereby waive, release, and agree not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by any Borrower in connection with, arising out of, or in any way related to, this Agreement, any of the other Loan Documents or the Fee Letter, or any of the transactions contemplated by this Agreement, any of the other Loan Documents or the Fee Letter.  The Borrowers hereby waive, release, and agree not to sue the Agent or any Lender or any of the Agent’s or any Lender’s Affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Agreement, any of the other Loan Documents or the Fee Letter, or any of the transactions contemplated by this Agreement or financed hereby.

 

	
Section 12.20.

	
Entire Agreement.

 

This Agreement, the other Loan Documents and the Fee Letter embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations, and understandings, whether written or oral, relating to the subject matter hereof and thereof and may not be contradicted or varied by evidence of prior, contemporaneous, or subsequent oral agreements or discussions of the parties hereto.  There are no oral agreements among the parties hereto.

 

  

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Section 12.21.

	
Construction.

 

The Agent, each Borrower and each Lender acknowledge that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review this Agreement and the other Loan Documents with its legal counsel and that this Agreement and the other Loan Documents shall be construed as if jointly drafted by the Agent, the Borrowers and the Lenders.

 

	
Section 12.22.

	
Time is of the Essence.

 

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

 

	
Section 12.23.

	
Headings.

 

The paragraph and section headings in this Agreement are provided for convenience of reference only and shall not affect its construction or interpretation.

 

	
Section 12.24.

	
Intercreditor Agreement.

 

EACH LENDER HEREBY (A) CONSENTS TO AND APPROVES EACH AND ALL OF THE PROVISIONS OF THE INTERCREDITOR AGREEMENT, (B) AGREES THAT IT IS BOUND BY AND WILL TAKE NO ACTIONS CONTRARY TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT, (C) ACKNOWLEDGES THAT THE LIENS SECURING THE OBLIGATIONS, AND THE EXERCISE OF RIGHTS AND REMEDIES GRANTED TO THE AGENT AND LENDERS UNDER THE PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS WITH RESPECT TO SUCH LIENS, ARE SUBJECT TO THE INTERCREDITOR AGREEMENT AND (D) IRREVOCABLY AUTHORIZES AND DIRECTS THE AGENT TO EXECUTE AND DELIVER THE INTERCREDITOR AGREEMENT AND TO PERFORM ITS OBLIGATIONS THEREUNDER.  IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN.

[Signatures on Following Pages]

  

- 101 -

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Term Loan Agreement to be executed by their authorized officers all as of the day and year first above written.

	  	
LEXINGTON REALTY TRUST

	  	  
	  	
By:

	/s/ Joseph Bonventre
	  	  	
Name:

	
Joseph Bonventre

	  	  	
Title:

	
Executive Vice President

	  	  
	  	
LEPERCQ CORPORATE INCOME FUND L.P.

	  	
LEPERCQ CORPORATE INCOME FUND II L.P.

	  	
Each By:  LEX GP-1 Trust, its sole general partner

	  	  
	  	  	
By:

	/s/ Joseph Bonventre
	  	  	  	
Name:

	
Joseph Bonventre

	  	  	  	
Title:

	
Vice President

[Signatures Continued on Next Page]

  

 

  

[Signature Page to Term Loan Agreement with Lexington Realty Trust et al.]

	  	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as

	  	
Agent and as a Lender

	  	  
	  	
By:

	/s/ D. Bryan Gregory
	  	  	
Name: D. Bryan Gregory

	  	  	
Title:  Director

[Signatures Continued on Next Page]

  

 

  

[Signature Page to Term Loan Agreement with Lexington Realty Trust et al.]

	  	
KEYBANK NATIONAL ASSOCIATION

	  	  
	  	
By:

	/s/ Jane E. McGrath
	  	  	
Name:

	Jane E. McGrath
	  	  	
Title:

	Vice President

  

 

  

[Signature Page to Term Loan Agreement with Lexington Realty Trust et al.]

	  	
REGIONS BANK

	  	  
	  	
By:

	/s/ Kerri Raines
	  	  	
Name:

	Kerri Raines  
	  	  	
Title:

	Vice President

  

 

  

[Signature Page to Term Loan Agreement with Lexington Realty Trust et al.]

	  	
CAPITAL ONE, N.A.

	  	  
	  	
By:

	/s/ Frederick H. Denecke
	  	  	
Name:

	Frederick H. Denecke
	  	  	
Title:

	Vice President

  

 

  

[Signature Page to Term Loan Agreement with Lexington Realty Trust et al.]

	  	
BRANCH BANKING AND TRUST COMPANY

	  	  
	  	
By:

	/s/ Ahaz A. Armstrong
	  	  	
Name:

	Ahaz A. Armstrong
	  	  	
Title:

	Assistant Vice President

  

 

  

Schedule I

Commitments

	
Lender

	 	
Commitment Amount

	 
	
Wells Fargo Bank, National Association

	 	$	90,000,000.00	 
	
KeyBank National Association

	 	$	50,000,000.00	 
	
Regions Bank

	 	$	50,000,000.00	 
	
Capital One, N.A.

	 	$	20,000,000.00	 
	
Branch Banking and Trust Company

	 	$	5,000,000.00	 
	  	 	 	 	 
	
TOTAL

	 	$	215,000,000.00	 

  

 

  

EXHIBIT A

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each]1 Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2 Assignee identified in item 2 below ([the][each, an] “Assignee”).  [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are several and not joint.]4  Capitalized terms used but not defined herein shall have the meanings given to them in the Term Loan Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the Credit Agreement, and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).  Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.

1 For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors, choose the second bracketed language.

 

2 For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees, choose the second bracketed language.

 

3 Select as appropriate.

 

4 Include bracketed language if there are either multiple Assignors or multiple Assignees.

  

A-1

  

 

	
1.

	
Assignor[s]:

	  	
________________________________

	  	  	  	  
	  	  	  	
______________________________

	  	
[Assignor [is] [is not] a Defaulting Lender]

	  	  	  	  
	
2.

	
Assignee[s]:

	  	
______________________________

	  	  	  	  
	  	  	  	
______________________________

	  	
[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]

	  	  	  	  
	
3.

	
Borrower(s):

	  	
Lexington Realty Trust, LEPERCQ Corporate Income Fund L.P.,  and LEPERCQ Corporate Income Fund II L.P.

	  	  	  	  
	
4.

	
Administrative Agent:

	  	
Wells Fargo Bank, National Association, as the administrative agent under the Credit Agreement

	  	  	  	  
	
5.

	
Credit Agreement:

	  	
$215,000,000 Term Loan Agreement dated as of January 13, 2012 among Lexington Realty Trust, LEPERCQ Corporate Income Fund L.P., and LEPERCQ Corporate Income Fund II L.P., the Lenders parties thereto, Wells Fargo Bank, National Association, as Administrative Agent, and the other parties thereto

	  	  	  	  
	
6.

	
 Assigned Interest[s]:

	  	  

	
Assignor[s]5

	 	 	
Assignee[s]6

	 	 	
Aggregate Amount

of

Commitment/Loans

for all Lenders7

	 	 	
Amount of

Commitment/

Loans

Assigned8

	 	 	
Percentage

Assigned of

Commitment/

Loans8

	 	 	
CUSIP

Number

	 
	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 	 	 
	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 	 	 
	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 	 	 

	
[7.

	
Trade Date: 

	  	______________]9

 

5 List each Assignor, as appropriate.

 

6 List each Assignee, as appropriate.

 

7 Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

 

8 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

9 To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of the Trade Date.

  

A-2

  

Effective Date:   _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	  	  	
ASSIGNOR[S]10

	  
	  	  	
[NAME OF ASSIGNOR]

	  
	  	  	  	  	  
	  	  	
By:

	  	  
	  	  	
Name: 

	  	  
	  	  	
Title:

	  	  
	  	  	  	  	  
	  	  	
[NAME OF ASSIGNOR]

	  
	  	  	  	  	  
	  	  	
By:

	  	  
	  	  	
Name:

	  	  
	  	  	
Title:

	  	  
	  	  	  	  	  
	  	  	
ASSIGNEE[S]11

	  
	  	  	
[NAME OF ASSIGNEE]

	  
	  	  	  	  	  
	  	  	
By:

	  	  
	  	  	
Name:

	  	  
	  	  	
Title:

	  	  
	  	  	  	  	  
	  	  	
[NAME OF ASSIGNEE]

	  
	  	  	  	  	  
	  	  	
By:

	  	  
	  	  	
Name:

	  	  
	  	  	
Title:

	  	  

10 Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

 

11 Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

  

A-3

  

[Consented to and]12 Accepted:

WELLS FARGO BANK, NATIONAL ASSOCIATION, as

  Administrative Agent

	
By:

	  	  
	
Name: 

	  	  
	
Title:

	  	  
	  	  	  
	
[Consented to:]13

	  
	  	  
	
[NAME OF RELEVANT PARTY]

	  
	  	  	  
	
By:

	  	  
	
Name:

	  	  
	
Title:

	  	  

12 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

 

13 To be added only if the consent of the Borrower and/or other parties (e.g. Swingline Lender, Issuing Bank) is required by the terms of the Credit Agreement.

  

A-4

  

ANNEX 1

[__________________]14

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.           Representations and Warranties.

1.1         Assignor[s].  [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and (iv) it is [not] a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

1.2.  Assignee[s].  [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an Eligible Assignee as defined in the Credit Agreement (subject to such consents, if any, as may be required under such definition), (iii) from and after the Effective Date specified for this Assignment and Assumption, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the financial statements referenced in Section 6.1(k) thereof or of the most recent financial statements delivered pursuant to Section 8.1. or 8.2. thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent, the Assignor or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

14 Describe Credit Agreement at option of Administrative Agent.

  

A-5

  

 

2.  Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignee whether such amounts have accrued prior to, on or after the Effective Date specified for this Assignment and Assumption.  The Assignor[s] and the Assignee[s] shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to such Effective Date or with respect to the making of this assignment directly between themselves.

3.  General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy or portable document format (“PDF”) or other similar electronic means shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

  

A-6

  

EXHIBIT B

FORM OF NOTICE OF BORROWING

____________, 20__

Wells Fargo Bank, National Association,

as Administrative Agent

608 Second Avenue South, 11th Floor

Minneapolis, Minnesota  55402-1916

Attn:  Cynthia Mayne

Ladies and Gentlemen:

Reference is made to that certain Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Term Loan Agreement.

	
  

	
1.

	
Pursuant to Section 2.1. of the Term Loan Agreement, the Borrower Representative hereby request that the Lenders make Loans in an aggregate principal amount equal to $___________________ to the following Borrower (such Borrower, the “Designated Borrower”).

[Check one box only]

 ̈           Lexington Realty Trust

 ̈           LEPERCQ Corporate Income Fund L.P.

 ̈           LEPERCQ Corporate Income Fund II L.P.

	
  

	
2.

	
The Borrower Representative requests that such Loans be made available to the Designated Borrower on __________ __, 20__.

[Continued on next page]

  

B-1

  

 

	
  

	
3.

	
The Borrower Representative hereby requests that such Loans be of the following Type:

[Check one box only]

 ̈           Base Rate Loans

 ̈           LIBOR Loans, with an initial Interest Period for a duration of:

[Check one box only]

 ̈   one month

 ̈   two months

 ̈   three months

4.           The Borrowers request that the proceeds of this borrowing of Loans be made available to the Borrowers by ______________________________________________________________________.

The Borrower Representative hereby certify to the Administrative Agent and the Lenders that as of the date hereof, as of the date of the making of the requested Loans, and after giving effect thereto, (a) no Default or Event of Default exists or will exist immediately after giving effect to the requested Loans, and (b) the representations and warranties made or deemed made by the Borrowers and each other Loan Party in the Loan Documents to which any of them is a party, are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  In addition, the Borrower Representative certifies to the Administrative Agent and the Lenders that all conditions to the making of the requested Loans contained in Article V. of the Term Loan Agreement will have been satisfied (or waived in accordance with the applicable provisions of the Loan Documents) at the time such Loans are made.

[Signature on Next Page]

  

B-2

  

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Borrowing as of the date first written above.

	  	
LEXINGTON REALTY TRUST, as Borrower 

Representative

	  
	  	  	  	  	  
	  	
By: 

	  	  
	  	  	
Name:

	  	  
	  	  	
Title:

	  	  

  

B-3

  

EXHIBIT C

FORM OF NOTICE OF CONTINUATION

PRIVATE INFORMATION

____________, 20__

Wells Fargo Bank, National Association,

as Administrative Agent

608 Second Avenue South, 11th Floor

Minneapolis, Minnesota  55402-1916

Attn:  Cynthia Mayne

Ladies and Gentlemen:

Reference is made to that certain Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Term Loan Agreement.

Pursuant to Section 2.8. of the Term Loan Agreement, the Borrower Representative hereby requests a Continuation of LIBOR Loans under the Term Loan Agreement, and in that connection sets forth below the information relating to such Continuation as required by such Section of the Term Loan Agreement:

	
  

	
1.

	
The requested date of such Continuation is ____________, 20__.

	
  

	
2.

	
The aggregate principal amount of the Loans subject to the requested Continuation is $________________________ and was originally borrowed on ____________ __, 20__ by the Borrower indicated below:

[Check one box only]

 ̈           Lexington Realty Trust

 ̈           LEPERCQ Corporate Income Fund L.P.

 ̈           LEPERCQ Corporate Income Fund II L.P.

	
  

	
3.

	
The portion of such principal amount subject to such Continuation is $__________________________.

  

C-1

  

 

	
  

	
4.

	
The current Interest Period for each of the Loans subject to such Continuation ends on ________________, 20__.

	
  

	
5.

	
The duration of the Interest Period for each of the Loans or portion thereof subject to such Continuation is:

[Check one box only]

	
  

	
 ̈

	
one month

	
  

	
 ̈

	
two months

	
  

	
 ̈

	
three months

The Borrower Representative hereby certifies to the Administrative Agent and the Lenders that as of the date hereof, as of the proposed date of the requested Continuation, and after giving effect to such Continuation, (a) no Default or Event of Default exists or will exist immediately after giving effect to such Continuation, and (b) the representations and warranties made or deemed made by the Borrowers and each other Loan Party in the Loan Documents to which any of them is a party, are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Continuation as of the date first written above.

	  	
LEXINGTON REALTY TRUST, as Borrower

Representative

	  	  	  	  	  
	  	
By: 

	  	  
	  	  	
Name: 

	  	  
	  	  	
Title:

	  	  

  

C-2

  

EXHIBIT D

FORM OF NOTICE OF CONVERSION

PRIVATE INFORMATION

____________, 20__

Wells Fargo Bank, National Association,

as Administrative Agent

608 Second Avenue South, 11th Floor

Minneapolis, Minnesota  55402-1916

Attn:  Cynthia Mayne

Ladies and Gentlemen:

Reference is made to the Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Term Loan Agreement.

Pursuant to Section 2.9. of the Term Loan Agreement, the Borrower Representative hereby requests a Conversion of Loans of one Type into Loans of another Type under the Term Loan Agreement, and in that connection sets forth below the information relating to such Conversion as required by such Section of the Term Loan Agreement:

	
  

	
1.

	
The requested date of such Conversion is ______________, 20__.

	
  

	
2.

	
The Type of Loans to be Converted pursuant hereto is currently:

[Check one box only]

	
  

	
 ̈

	
Base Rate Loans

	
  

	
 ̈

	
LIBOR Loans

  

D-1

  

	
  

	
3.

	
The aggregate principal amount of the Loans subject to the requested Conversion is $_____________________ and was originally borrowed on _______ __, 20__ by the Borrower indicated below:

[Check one box only]

 ̈           Lexington Realty Trust

 ̈           LEPERCQ Corporate Income Fund L.P.

 ̈           LEPERCQ Corporate Income Fund II L.P.

	
  

	
4.

	
The portion of such principal amount subject to such Conversion is $___________________.

	
  

	
5.

	
The amount of such Loans to be so Converted is to be converted into Loans of the following Type:

[Check one box only]

	
  

	
 ̈

	
Base Rate Loan

	
  

	
 ̈

	
LIBOR Loan, with an initial Interest Period for a duration of:

	
  

	
[Check one box only]

	
  

	
 ̈

	
one month

	
  

	
 ̈

	
two months

	
  

	
 ̈

	
three months

[The Borrower Representative hereby certifies to the Administrative Agent and the Lenders that as of the date hereof, as of the proposed date of the requested Conversion, and after giving effect to such Conversion, (a) no Default or Event of Default exists or will exist immediately after giving effect to such Conversion, and (b) the representations and warranties made or deemed made by the Borrowers and each other Loan Party in the Loan Documents to which any of them is a party, are and shall be true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.]1

[Signature on next page]

1           Include this paragraph only if converting a Base Rate Loan into a LIBOR Loan.

  

D-2

  

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Conversion as of the date first written above.

	  	
LEXINGTON REALTY TRUST, as Borrower 

Representative

	  	  	  	  	  
	  	
By: 

	  	  
	  	  	
Name: 

	  	  
	  	  	
Title:

	  	  

  

D-3

  

EXHIBIT E

FORM OF TERM NOTE

	
$_____________

	
__________ __, 20__

FOR VALUE RECEIVED, the undersigned, Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”) hereby unconditionally and jointly and severally promise to pay to the order of ___________________________ (the “Lender”), in care of Wells Fargo Bank, National Association, as Agent (the “Agent”), to its address at 608 Second Avenue South, 11th Floor, Minneapolis, Minnesota 55402-1916 or at such other address as may be specified by the Agent to the Borrower, the principal sum of ___________________ AND ___/100 DOLLARS ($_____________), or such lesser amount as may be the then outstanding and unpaid balance of all Term Loans made by the Lender to the Borrowers pursuant to, and in accordance with the terms of, the Term Loan Agreement (as defined below).

Each Borrower further agrees to pay interest at said office, in like money, on the unpaid principal amount owing hereunder from time to time on the dates and at the rates and at the times specified in the Term Loan Agreement.

This Term Note is one of the “Notes” referred to in the Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among the Borrowers, the financial institutions party thereto and their assignees under Section 12.5 thereof, the Agent, and the other parties thereto, and is subject to, and entitled to, all provisions and benefits thereof.  Capitalized terms used herein and not defined herein shall have the respective meanings given to such terms in the Term Loan Agreement.  The Term Loan Agreement, among other things, (a) provides for the making of Term Loans by the Lender to the Borrowers in an aggregate amount not to exceed the Dollar amount first above mentioned, (b) permits the prepayment of the Term Loans by the Borrower subject to certain terms and conditions and (c) provides for the acceleration of the Term Loans upon the occurrence of certain specified events.

Each Borrower hereby waives presentment, demand, protest and notice of any kind.  No failure to exercise, and no delay in exercising any rights hereunder on the part of the holder hereof shall operate as a waiver of such rights.

Time is of the essence for this Term Note.

[This Term Note is given in replacement of the Term Note dated _____ __, 20__, in the original principal amount of $_______ previously delivered to the Lender under the Term Loan Agreement.  THIS TERM NOTE IS NOT INTENDED TO BE, AND SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING UNDER OR IN CONNECTION WITH THE OTHER TERM NOTE.]1

1           Language to be included in case of an assignment and need to issue a replacement note to an existingLender, either because such Lender’s Term Loan has increased or decreased from what it was initially.

  

E-1

  

 

THIS TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE (INCLUDING, FOR SUCH PURPOSE, SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAWS OF THE STATE OF NEW YORK).

[Signature on Next Page]

  

E-2

  

IN WITNESS WHEREOF, each of the undersigned has executed and delivered this Term Note under seal as of the date written above.

	  	
LEXINGTON REALTY TRUST

	 
	  	  	 	 	  	 
	  	
By: 

	 	  	 
	  	  	Name: Joseph Bonventre	 
	  	  	Title: Executive Vice President	 
	  	  	 	 	  	 
	  	
LEPERCQ CORPORATE INCOME FUND L.P.

	 
	 	 	 
	  	
LEPERCQ CORPORATE INCOME FUND II L.P.

	 
	  	  	 
	  	
Each By:  LEX GP-1 Trust, its sole general partner

	 
	  	  	 	 	  	 
	  	
  

	 	By: 	  	 
	  	  	 	 	
Name: Joseph Bonventre

	 
	  	  	 	 	
Title: Vice President

	 

  

E-3

  

SCHEDULE OF TERM LOANS

This Term Note evidences Term Loans made under the within-described Term Loan Agreement to the Borrowers, on the dates and in the principal amounts set forth below, subject to the payments and prepayments of principal set forth below:

	
Date of

Loan

	 	 	
Principal

Amount of

Loan

	 	 	
Amount

Paid or

Prepaid

	 	 	
Unpaid

Principal

Amount

	 	 	
Notation

Made By

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

E-4

  

EXHIBIT F

FORMS OF OPINIONS OF COUNSELTO THE BORROWER AND GUARANTORS

[See attached]

  

F-1-(A)

  

January 13, 2012

Wells Fargo Bank, National Association, as Agent

301 S. College Street

Charlotte, North Carolina 28288

The Lenders party to the Loan Agreement 

referred to below

Re:           Lexington Realty Trust

Ladies and Gentlemen:

We have served as Maryland counsel for Lexington Realty Trust, a Maryland real estate investment trust (the “Company”), in connection with certain matters of Maryland law arising out of the Term Loan Agreement, dated as of the date hereof (the “Loan Agreement”), by and among the Company, Lepercq Corporate Income Fund L.P., a Delaware limited partnership (“Lepercq Fund”), Lepercq Corporate Income Fund II L.P., a Delaware limited partnership (“Lepercq Fund II” and, together with the Company and Lepercq Fund, the “Borrowers”), and the financial institutions party thereto (the “Lenders”), Wells Fargo Bank, National Association, as agent (the “Agent”), Wells Fargo Securities, LLC, as sole lead arranger and sole bookrunner, and KeyBank National Association, as syndication agent, and Regions Bank, as documentation agent.  This firm did not participate in the negotiation or the drafting of the Loan Agreement or the other Loan Documents (as defined herein).

In connection with our representation of the Company, and as a basis for the opinion hereinafter set forth, we have examined originals, or copies certified or otherwise identified to our satisfaction, of the following documents (hereinafter collectively referred to as the “Documents”):

The Declaration of Trust of the Company, as amended and supplemented through the date hereof (the “Declaration of Trust”), certified by the State Department of Assessments and Taxation of Maryland (the “SDAT”);

The Amended and Restated Bylaws of the Company (the “Bylaws”), certified as of the date hereof by an officer of the Company;

A certificate of the SDAT as to the good standing of the Company, dated as of a recent date;

The Loan Agreement;

  

F-2-(A)

  

 

The Pledge Agreement, dated as of the date hereof (the “Pledge Agreement”), by the Borrowers and the guarantors named therein in favor of the Agent for the benefit of the Lenders;

The Intercreditor Agreement, dated as of the date hereof (the “Intercreditor Agreement”), by and among the Borrowers, the other grantors party thereto, the Agent and KeyBank National Association;

Five (5) Notes, each dated as of the date hereof (the “Notes” and, together with the Loan Agreement, the Pledge Agreement and the Intercreditor Agreement, the “Loan Documents”), made by the Borrowers in favor of the Agent in the aggregate principal amount of $215,000,000;

The UCC-1 Financing Statement (the “Financing Statement”), naming the Company as Debtor and the Agent as Secured Party, in the form to be filed with the SDAT, in accordance with the Maryland Uniform Commercial Code (the “UCC”);

Resolutions adopted by the Board of Trustees of the Company relating to, among other matters, the approval of the Loan Documents, certified as of the date hereof by an officer of the Company;

The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010 (the “10-K”);

A certificate executed by an officer of the Company, dated as of the date hereof; and

Such other documents and matters as we have deemed necessary or appropriate to express the opinion set forth below, subject to the assumptions, limitations and qualifications stated herein.

In expressing the opinion set forth below, we have assumed the following:

1.          Each individual executing any of the Documents, whether on behalf of such individual or another person, is legally competent to do so.

2.          Each individual executing any of the Documents on behalf of a party (other than the Company) is duly authorized to do so.

3.          Each of the parties (other than the Company) executing any of the Documents has duly and validly executed and delivered each of the Documents to which such party is a signatory, and such party’s obligations set forth therein are legal, valid and binding and are enforceable in accordance with all stated terms.

  

F-3-(A)

  

4.          All Documents submitted to us as originals are authentic.  The form and content of all Documents submitted to us as unexecuted drafts do not differ in any respect relevant to this opinion from the form and content of such Documents as executed and delivered.  All Documents submitted to us as certified or photostatic copies conform to the original documents.  All signatures on all Documents are genuine.  All public records reviewed or relied upon by us or on our behalf are true and complete.  All representations, warranties, statements and information contained in the Documents are true and complete.  There has been no oral or written modification of or amendment to any of the Documents, and there has been no waiver of any provision of any of the Documents, by action or omission of the parties or otherwise.

5.          All descriptions of the real and personal property constituting collateral set forth in the Loan Documents and in the Financing Statement (including, without limitation, descriptions of property in which security interests subject to the UCC are created) reasonably and accurately identify the collateral described.

6.          All security interests purported to have been created under the Loan Documents in the collateral described in the Loan Documents that is of the type in which a security interest can be created under Title 9 of the UCC (collectively, the “UCC Collateral”) have attached.

The phrase “known to us” is limited to the actual knowledge, without independent inquiry, of the lawyers at our firm who have performed legal services in connection with the issuance of this opinion.

Based upon the foregoing, and subject to the assumptions, limitations and qualifications stated herein, it is our opinion that:

1.           The Company is a real estate investment trust duly formed and existing under and by virtue of the laws of the State of Maryland and is in good standing with the SDAT.  The Company has the trust power to own or lease its properties and to conduct its business as described in the 10-K under the caption “Business” and to execute and deliver, and to perform its obligations under, the Loan Documents.

2.           The execution and delivery of the Loan Documents, the consummation of the transactions contemplated thereby, and the performance by the Company of its obligations thereunder have been duly authorized by all necessary trust action by the Company.

3.           The Loan Documents have been duly executed and, so far as is known to us, delivered by the Company.

4.           None of the execution and delivery of the Loan Documents, or the consummation of the transactions contemplated thereby, or the performance by the Company of its obligations thereunder will violate or conflict with the (a) Declaration of Trust or the Bylaws or (b) any Maryland law, rule or regulation applicable to the Company.

  

F-4-(A)

  

5.          Upon the effective filing of the Financing Statement with the SDAT and the payment of the appropriate fee, the security interest granted by the Company pursuant to the Loan Documents with respect to the UCC Collateral will constitute a perfected security interest under the UCC in all right, title and interest of the Company in, to and under such UCC Collateral, to the extent that a security interest in the UCC Collateral may be perfected by the filing of financing statements under the UCC.

Our opinion expressed in paragraph 5 above with respect to the perfection of security interests is further subject to the following:

 

(i)                           In the case of property as to which the security interest attaches after the date hereof, Section 552 of the Federal Bankruptcy Code limits the extent to which property acquired by a debtor after the commencement of a case under the Federal Bankruptcy Code may be subject to a security interest arising from a security agreement entered into by the debtor before the commencement of such case;

 

(ii)                          The Agent’s security interest will terminate upon a disposition authorized by the Agent;

 

(iii)                         In the case of any interest in or claim in or under any policy of insurance, the Agent’s security interest is limited to proceeds payable to the Company (and not to any other party named as loss payee under such policies);

 

(iv)                         Continued perfection of any security interest in proceeds is subject to Section 9-315 of the UCC;

 

(v)                          In the case of any UCC Collateral consisting of goods, the Agent’s security interest is subject to the rights of buyers of the goods under Section 9-320 of the UCC and the rights of lessees of the goods under Section 9-321 of the UCC;

 

(vi)                         In the case of any UCC Collateral consisting of general intangibles, the Agent’s security interest is subject to the rights of licensees in the ordinary course of business under Section 9-321 of the UCC;

 

(vii)                        We express no opinion as to any actions that may be required to be taken periodically under the UCC or other applicable law in order for the effectiveness of financing statements or the validity or perfection of any security interest to be maintained;

 

(viii)                       We express no opinion on title to any property or the creation, attachment, perfection or priority of any liens or security interests, except with respect to perfection as specifically set forth in paragraph 5 above; and

 

(ix)                          We express no opinion on the perfection of any security interest in money, deposit accounts, letter-of-credit rights, fixtures, as-extracted collateral, timber to be cut, patents, trademarks, copyrights, property subject to a certificate of title statute or other property in which the perfection of a security interest is governed by federal statute, regulation or treaty.

  

F-5-(A)

  

 

The foregoing opinion is limited to the substantive laws of the State of Maryland and we do not express any opinion herein concerning any other law.  We note that each of the Loan Documents provides that it shall be governed by the laws of the State of New York.  To the extent that any matter as to which our opinion is expressed herein would be governed by the laws of any jurisdiction other than the State of Maryland, we do not express any opinion.  We express no opinion as to the applicability or effect of any state or federal securities laws, including the securities laws of the State of Maryland, or as to state or federal laws regarding fraudulent transfers, and we express no opinion with respect to the actions of the Borrowers (other than the Company) which may be required to authorize, execute, deliver or perform under the Loan Documents.  We express no opinion on the extent to which the application of Article 9 of the UCC may be affected by any federal or other state law. Our opinion expressed in paragraph 4(b) above is based upon our consideration of only those laws, rules and regulations of the State of Maryland, if any, which, in our experience, are normally applicable to transactions of the type contemplated under the Loan Documents. The opinion expressed herein is subject to the effect of judicial decisions which may permit the introduction of parol evidence to modify the terms or the interpretation of agreements.

The opinion expressed herein is limited to the matters specifically set forth herein and no other opinion shall be inferred beyond the matters expressly stated.  We assume no obligation to supplement this opinion if any applicable law changes after the date hereof or if we become aware of any fact that might change the opinion expressed herein after the date hereof.

This opinion is being furnished to you solely for your benefit in connection with the Loan Documents.  Accordingly, it may not be relied upon by, quoted in any manner to, or delivered to any other person or entity (other than (i) Post Heymann & Koffler LLP, counsel to the Company, among others, in connection with any opinions to be delivered by it to you, and (ii) your permitted successors and assigns) without, in each instance, our prior written consent. You may deliver copies of this opinion to and your bank examiners and any other governmental authority or self-regulatory body to which you are subject to review, but no such person shall be entitled to rely on this opinion.

Very truly yours,

  

F-6-(A)

  

January 13, 2012

Wells Fargo Bank, National Association,

as Administrative Agent

301 South College Street

Charlotte, North Carolina  28288

The Lenders party to the Term Loan Agreement

referred to below

Ladies and Gentlemen:

We have acted as counsel to Lexington Realty Trust (the “Trust”), Lepercq Corporate Income Fund L.P. (“LCIF”), and Lepercq Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), in connection with the negotiation, execution and delivery of that certain Term Loan Agreement dated as of January 13, 2012 (the “Term Loan Agreement”), by and among the Borrowers, each of the financial institutions initially a signatory thereto together with their assignees pursuant to Section 12.5 and Wells Fargo Bank, National Association, as Administrative Agent (the “Agent”).  We have also acted as counsel to each of the Guarantors listed on Schedule 1 attached hereto (the “Guarantors”; together with the Borrowers, the “Loan Parties”), in connection with the Guaranty and the other Loan Documents identified below to which they are party.  Capitalized terms not otherwise defined herein have the respective meaning given them in the Term Loan Agreement.

In connection with the opinions hereinafter set forth, we examined the originals, or certified, conformed or reproduction copies, of those documents listed on Schedule 2 hereto (collectively, the “Loan Documents”) and the financing statements listed on Schedule 3 hereto (the “Financing Statements”).

  

F-1-(B)

  

In addition to the foregoing, we have reviewed the applicable organizational documents of each Loan Party (the “Organizational Documents”) and have also examined originals or copies, certified or otherwise identified to our satisfaction, of such documents, corporate records, and other instruments, and made such other investigations of law and fact, as we have deemed necessary or advisable for the purposes of rendering this opinion.  In our examination of documents, we assumed the genuineness of all signatures on documents presented to us as originals (other than the signatures of officers of the Loan Parties) and the conformity to originals of documents presented to us as conformed or reproduced copies.

As to factual matters underlying the opinions hereinafter set forth we have also relied upon, and assumed without independent investigation the accuracy of, (i) certificates of the Loan Parties delivered in connection with the transactions contemplated by the Term Loan Agreement, (ii) the representations set forth in the Loan Documents (as hereinafter defined), and (iii) the other documents delivered pursuant thereto.

The opinions hereinafter set forth are subject to the following qualifications:

(a)           We express no opinion (i) as to, and the effect of, the compliance or non-compliance by the Lenders with any law, rule or regulation applicable because of the legal or regulatory status or the specific nature of the business of the Lenders, or (ii) regarding any law, rule or regulation to which an Loan Party may be subject or any approval any of the Loan Parties may be required to obtain, in either case, solely because of the legal or regulatory status of the Lenders or solely because of any facts specifically pertaining to the Lenders and of which we have no actual knowledge;

(b)           The enforceability of each Loan Document against each Loan Party that is a party to it may be limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law), including, without limitation, principles regarding good faith and fair dealing.  In addition, we express no opinion as to the enforceability of (i) self-help provisions, (ii) provisions that purport to establish evidentiary standards, (iii) provisions exculpating a party from, or indemnifying a party for (or entitling a party to contribution in a case involving), its own gross negligence, willful misconduct or violation of securities or other laws, (iv) provisions relating to the availability of specific remedies of relief, or the release or waiver of any remedies or rights or time periods in which claims are required to be asserted, (v) provisions that allow cumulative remedies, late charges or default interest to the extent constituting a penalty, or (vi) provisions relating to the discharge of defenses or disclaimers, liability limitations or limitations of the obligation of the Lenders or an Loan Party under any of the Loan Documents.  In addition, certain provisions of the Loan Documents regarding remedies are or may be unenforceable, ineffective and/or qualified in whole or in part under the law of the State of New York (including judicial decisions), but (subject to the limitation set forth in the first sentence of this paragraph b) in our opinion the remedies contained in the Loan Documents, taking into account the other provisions of the Loan Documents that affect such remedies, all as interpreted under the internal laws of the State of New York, are generally adequate for the practical realization of the principal benefits afforded by the respective Loan Documents;

  

F-2-(B)

  

Wells Fargo Bank, National Association, as Agent

January 13, 2012

Page 3

(c)          No opinion is expressed with respect to provisions of the Loan Documents that purport to indemnify against or prospectively release a party for liability for its own wrongful or negligent acts where such release or indemnification is contrary to public policy;

(d)           This opinion is based upon existing laws, ordinances and regulations in effect as of the date hereof and as they presently apply;

(e)                                         We express no opinion as to the effect of the laws of any state or jurisdiction other than the laws of the United States of America, the Delaware Limited Liability Company Act (the “LLC Act”), the Delaware Revised Uniform Limited Partnership Act (the “RULPA”), Delaware General Corporation Law (the “DGCL”) and the laws of the State of New York and solely with respect to the opinions set forth in Paragraph 12 below, the Uniform Commercial Codes as in effect on the date hereof in the State of Delaware (the “DE-UCC”) and the State of Arizona (the “AZ-UCC”).  For purposes hereof, we have assumed that the AZ-UCC is identical as to their application to the DE-UCC.  We are not admitted to practice in the State of Delaware.  Our opinions expressed below with respect to the LLC Act, the RULPA or the DGCL are based solely on our review of the statutory language of the LLC Act, the RULPA and the DGCL, respectively, as shown on the Online Delaware Code (displayed at http://delcode.delaware.gov) on the date hereof, without regard to case law decided thereunder and without regard to any legislative history or judicial decisions, or any rules, regulations, guidelines, releases or interpretations concerning the LLC Act, the RULPA or the DGCL, and we have assumed that the Online Delaware Code accurately sets forth the provisions of the RULPA as in effect on the date hereof.  Our opinions with respect to Articles 8 and 9 of the DE-UCC are based solely on our review of Articles 8 and 9 of the DE-UCC in effect in such state as published in the CCH Secured Transactions Guide (and not on any legislative history or judicial decisions or any rules, regulations, guidelines, releases or interpretations concerning the DE-UCC), and we have assumed that such publication accurately sets forth the provisions of the DE-UCC as in effect on the date hereof;

(f)            We have assumed that all signatures (other than those of the Loan Parties) on all documents submitted to us are genuine, all signatories are competent and have the capacity to execute such documents, all documents submitted to us as originals are authentic, and all documents submitted to us as certified or photostat copies conform to the original documents, which themselves are authentic;

(g)          We have assumed that the Loan Documents have been duly authorized, executed and delivered by the parties thereto other than the Loan Parties;

(h)          There has been no mutual mistake of fact or fraud or duress with respect to the Loan Parties entering into the Loan Documents or the transaction that is the subject matter of these opinions;

(i)           The constitutionality and validity of all relevant laws, regulations, and agency actions, other than those where a reported case has otherwise held or widespread concern has been expressed by commentators as reflected in materials that lawyers routinely consult;

(j)           The Financing Statements have been or will be duly filed and properly indexed with the applicable office as set forth on Schedule 3 hereto;

(k)           In the case of property which becomes part of a type of personal property collateral described in the Pledge Agreement in which a security interest can be created and perfected by filings of a financial statement under Article 9 of the DE-UCC and AZ-UCC after the date hereof, Section 552 of the Federal Bankruptcy Code limits the extent to which the property acquired by a debtor after the commencement of a case under the Federal Bankruptcy Code may be subject to a security interest arising from a security agreement entered into by the debtor before the commencement of such case.

  

F-3-(B)

  

Wells Fargo Bank, National Association, as Agent

January 13, 2012

Page 4

Furthermore, we express no opinion as to the rights of the Loan Parties in or title to any of the collateral described in the Loan Documents or as to the priority of any lien or security interest therein.  Furthermore, we give no opinion concerning the following types of laws: fiduciary duty requirements generally applicable to the parties to the Loan Documents; Federal Reserve Board margin regulations (except as set forth in paragraph 9 below); federal and state securities laws and regulations(except as set forth in paragraph 9 below); pension and employee benefit laws and regulations such as ERISA; federal and state tax laws; federal and state antitrust and unfair competition laws and regulations; federal and state regulations concerning filing requirements (such as Hart-Scott-Rodino and Exon-Florio), federal and state laws and regulations concerning the priority of any security interests.

In rendering the opinions set forth in paragraph 1 hereof relating to limited partnership, company or corporate existence and good standing, we have relied solely on the certificates, telegrams and other documents delivered to you on the Closing Date certified by the Secretary of State of the applicable jurisdiction for each Loan Party and we have also assumed that any such certificate, telegram or other document which was given or dated earlier than the date of this opinion letter has remained accurate as far as relevant to such opinions, from such earlier date through and including the date of this opinion letter.

Based upon the foregoing and subject to the limitations, qualifications, exceptions and assumptions set forth herein, we are of the opinion that:

1.           Each Loan Party (other than the Trust) is a corporation, trust, partnership or limited liability company, as applicable, duly organized or formed, validly existing and in good standing under the laws of the State of its organization or formation and has the power to execute and deliver, and to perform its obligations under, the Loan Documents to which it is a party, to own and use its assets, and to conduct its business as presently conducted.  Each Loan Party is qualified to transact business as a foreign corporation, trust, partnership or limited liability company, as applicable, in each jurisdiction or place where the nature of its properties or the conduct of its business requires such registration or qualification, except where such failure to qualify would not have a Material Adverse Effect.

2.           Each Loan Party (other than the Trust) has duly authorized the execution and delivery of the Loan Documents to which it is a party and the performance by such Loan Party of all of its obligations under each such Loan Document.

3.           Each Loan Party has duly executed and delivered the Loan Documents to which it is a party.

4.           Each Loan Document is a valid and binding obligation of each Loan Party which is a party thereto, enforceable against each such Loan Party in accordance with its terms.

5.           The execution and delivery by each Loan Party of the Loan Documents to which it is a party do not, and if each Loan Party were now to perform its obligations under such Loan Documents, such performance would not, result in any:

(a)           violation of such Loan Party’s Organizational Documents;

(b)           violation of any existing federal or state constitution, statute, regulation, rule, order, or law to which such Loan Party or its assets are subject;

  

F-4-(B)

  

Wells Fargo Bank, National Association, as Agent

January 13, 2012

Page 5

(c)           breach or violation of or default under, any agreement, instrument, indenture or other document evidencing any indebtedness for money borrowed or any other material agreement to which, to our knowledge, such Loan Party is bound or under which a Loan Party or its assets is subject, including, without limitation, the contracts set forth on Schedule 6.1(h) attached to the Term Loan Agreement;

(d)           creation or imposition of a lien or security interest in, on or against the assets of such Loan Party under any agreement, instrument, indenture or other document evidencing any indebtedness for money borrowed or any other material agreement to which, to our knowledge, such Loan Party is bound or under which a Loan Party or its assets is subject except as contemplated by the Loan Documents, including, without limitation, the contracts set forth on Schedule 6.1(h) attached to the Term Loan Agreement; or

(e)           violation of any judicial or administrative decree, writ, judgment or order to which, to our knowledge, such Loan Party or its assets are subject.

6.           The execution, delivery and performance by each Loan Party of each Loan Document to which it is a party, and the consummation of the transactions thereunder, do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority of the United States of America or the States of Delaware or New York.

7.           To our knowledge, there are no judgments outstanding against any of the Loan Parties or affecting any of their respective assets, nor is there any litigation or other proceeding against any of the Loan Parties or its assets pending or overtly threatened, could reasonably be expected to have a materially adverse effect on (a) the business, assets, liabilities, condition (financial or otherwise), results of operations or business prospects of any Borrower or any other Loan Party or (b) the validity or enforceability of any of the Loan Documents.

8.           None of the Loan Parties is, or, after giving effect to any Loan will be, (a) required to register as an “investment company”, or “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or (b) subject to the Federal Power Act or to any federal or state statute or regulation limiting its ability to incur indebtedness for borrowed money.

9.           Assuming that the Borrowers apply the proceeds of the Loans as provided in the Term Loan Agreement, the transactions contemplated by the Loan Documents do not violate the provisions of Regulations T, U or X of the Board of Governors of the Federal Reserve System of the United States of America.

10.         The consideration to be paid to the Agent and the Lenders for the financial accommodations to be provided to the Loan Parties pursuant to the Term Loan Agreement does not violate any law of the State of New York relating to interest and usury.

  

F-5-(B)

  

Wells Fargo Bank, National Association, as Agent

January 13, 2012

Page 6

11.          The provisions of the Pledge Agreement are effective to create, under Article 9 of the Uniform Commercial Code as currently in effect in the State of New York (the “NY UCC”), in favor of the Agent, a valid security interest in all right, title and interest of the Loan Parties party thereto in those items and types of collateral described in the Pledge Agreement and in which a security interest may be created under Article 9 of the New York UCC.  The delivery of the certificates in registered form representing the collateral which is in certificated form to the Agent or Keybank National Association (“Keybank”), assuming that Keybank has agreed to hold such certificates as custodian for Agent, validly endorsed to the Agent or in blank, and the continued possession of such certificates by the Agent or Keybank in such custodial capacity, together with the provisions of the Pledge Agreement, create, in favor of the Agent, a valid perfected security interest in the collateral which is in certificated form.

12.         The Financing Statements are in proper form for filing with the applicable filing office set forth on Schedule 3 hereto.  The filing of the Financing Statements will be sufficient to perfect the security interests granted pursuant to the Pledge Agreement in the partnership and membership interests of the Loan Parties, as applicable, which are described on the Financing Statements (the “Ownership Collateral”) and the other Pledged Collateral (as defined in the Pledge Agreement) (other than the Pledged Collateral for which the Trust is the pledger) and, subject to the next paragraph, no further filing or recording of any documents or instruments or other action except for the filing of continuation statements will be required to continue such perfection of the security interest granted in the Pledge Agreement to the Agent by the Loan Parties with respect to the Ownership Collateral and the other Pledged Collateral.

The foregoing opinion is qualified to the extent that:

(i)          the continuation of perfection of Agent’s security interest in proceeds will be limited to the extent provided in Section 9-315 of the DE-UCC and the corresponding provisions in the AZ-UCC;

(ii)           the security interest and lien of Agent in the Ownership Collateral and all other Collateral will cease to be perfected if Borrower changes its name, identity or corporate structure, unless new, appropriate financing statements are filed in accordance with the provisions of the DE-UCC and AZ-UCC, as applicable; and

(iii)          no opinion is given with respect to any of the Collateral which is real property or with respect to any assignment (collateral or otherwise) of any document that purports to create a security interest in real property.

The opinions set forth above are given on the date hereof, and we shall have no obligation or undertaking to amend, modify or amplify such opinion hereafter.  This opinion is furnished solely for the benefit of the addressees hereof and the Lenders, and all of such addressees and the Lenders subsequent participants, successors and assigns in connection with the consummation of the transactions contemplated by the Loan Documents and is not to be used, quoted, relied upon or otherwise referred to, or filed with any governmental agency or other Person for any other purpose, without our prior written consent except for Riemer & Braunstein LLP in connection with their representation of the addressees.

	  	
Very truly yours,

	  	  
	  	
POST HEYMANN & KOFFLER LLP

	  	  
	  	
By:

	  	  
	  	  	
A Partner

  

F-6-(B)

  

Schedule 1

“Guarantors”

	
Name

	  	
Jurisdiction of Formation

	
Acquiport 550 Manager LLC

	  	
DE

	
Acquiport 600 Manager LLC

	  	
DE

	
Acquiport Sierra Manager Corp.

	  	
DE

	
Acquiport Winchester Manager LLC

	  	
DE

	
Lex GP-1 Trust

	  	
DE

	
Lex GP Holding LLC

	  	
DE

	
Lex LP-1 Trust

	  	
DE

	
Lex-Property Holdings LLC

	  	
DE

	
Lex Rock Hill GP LLC

	  	
DE

	
Lex Westerville GP LLC

	  	
DE

	
Lexington Acquiport Company, LLC

	  	
DE

	
Lexington Acquiport Sierra LLC

	  	
DE

	
Lexington Allen Manager LLC

	  	
DE

	
Lexington Bristol GP LLC

	  	
DE

	
Lexington Collierville Manager LLC

	  	
DE

	
Lexington Columbus GP LLC

	  	
DE

	
Lexington Dulles Manager LLC

	  	
DE

	
Lexington Duncan Manager LLC

	  	
DE

	
Lexington Durham Inc.

	  	
DE

	
Lexington Florence Manager LLC

	  	
DE

	
Lexington Fort Street Trustee LLC

	  	
DE

	
Lexington High Point Manager LLC

	  	
DE

	
Lexington Honolulu Manager LLC

	  	
DE

	
Lexington LAC Lenexa GP LLC

	  	
DE

	
Lexington Lake Forest Manager LLC

	  	
DE

	
Lexington Louisville Manager LLC

	  	
DE

	
Lexington MLP Westerville Manager LLC

	  	
DE

	
Lexington Olive Branch Manager LLC

	  	
DE

	
Lexington Realty Advisors, Inc.

	  	
DE

	
Lexington Shelby GP LLC

	  	
DE

	
Lexington Southfield LLC

	  	
DE

	
Lexington Tampa GP LLC

	  	
DE

	
Lexington Toy Trustee LLC

	  	
DE

	
Lexington Wallingford Manager LLC

	  	
DE

	
Lexington Waxahachie Manager LLC

	  	
DE

	
LSAC Crossville Manager LLC

	  	
DE

	
LSAC General Partner LLC

	  	
DE

	
LSAC Operating Partnership L.P.

	  	
DE

	
LXP I, L.P.

	  	
DE

	
LXP I Trust

	  	
DE

	
MLP Unit Pledge GP LLC

	  	
DE

	
MLP Unit Pledge L.P.

	  	
DE

	
Newkirk Altenn GP LLC

	  	
DE

	
Newkirk Avrem GP LLC

	  	
DE

	
Newkirk Basot GP LLC

	  	
DE

  

F-7-(B)

  

	
Newkirk Carolion GP LLC

	  	
DE

	
Newkirk Clifmar GP LLC

	  	
DE

	
Newkirk Dalhill GP LLC

	  	
DE

	
Newkirk Elway GP LLC

	  	
DE

	
Newkirk Gersant GP LLC

	  	
DE

	
Newkirk Jacway GP LLC

	  	
DE

	
Newkirk JLE Way GP LLC

	  	
DE

	
Newkirk Johab GP LLC

	  	
DE

	
Newkirk Lanmar GP LLC

	  	
DE

	
Newkirk Liroc GP LLC

	  	
DE

	
Newkirk MLP Unit LLC

	  	
DE

	
Newkirk Orper GP LLC

	  	
DE

	
Newkirk Sablemart GP LLC

	  	
DE

	
Newkirk Salistown GP LLC

	  	
DE

	
Newkirk Sunway GP LLC

	  	
DE

	
Newkirk Superwest GP LLC

	  	
DE

	
Newkirk Walando GP LLC

	  	
DE

	
Newkirk Washtex GP LLC

	  	
DE

	
NK-CINN Hamilton Property Manager LLC

	  	
DE

	
NK-Lumberton Property Manager LLC

	  	
DE

	
NK-ODW/Columbus Property Manager LLC

	  	
DE

	
Phoenix Hotel Associates Limited Partnership

	  	
AZ

  

F-8-(B)

  

Schedule 2

“Loan Documents”

The following are all dated January 13, 2012.

	
1.

	
The Term Loan Agreement.

	
2.

	
The Notes (as defined in the Term Loan Agreement).

	
3.

	
Guaranty, made jointly and severally by the Guarantors, as described therein, in favor of the Agent.

	
4.

	
Pledge Agreement, by and among each of the Pledgors and the Agent.

	
5.

	
Intercreditor Agreement, by and among the Loan Parties, the Agent and KeyBank National Association.

  

F-9-(B)

  

Schedule 3

“Financing Statements”

(All entities are to be filed with Secretary of State of the State of Delaware except where indicated)

	
1.

	
Acquiport 550 Manager LLC

 

	
2.

	
Acquiport 600 Manager LLC

 

	
3.

	
Acquiport Winchester Manager LLC

 

	
4.

	
Lepercq Corporate Income Fund II L.P.

 

	
5.

	
Lepercq Corporate Income Fund L.P.

 

	
6.

	
Lex GP -1 Trust

 

	
7.

	
Lex GP Holding LLC

 

	
8.

	
Lex Rock Hill GP LLC

 

	
9.

	
Lex Westerville GP LLC

 

	
10.

	
Lexington Acquiport Company, LLC

 

	
11.

	
Lexington Acquiport Sierra LLC

 

	
12.

	
Lexington Allen Manager LLC

 

	
13.

	
Lexington Bristol GP LLC

 

	
14.

	
Lexington Collierville Manager LLC

 

	
15.

	
Lexington Columbus GP LLC

 

	
16.

	
Lexington Dulles Manager LLC

 

	
17.

	
Lexington Duncan Manager LLC

 

	
18.

	
Lexington Durham Inc.

 

	
19.

	
Lexington Florence Manager LLC

 

	
20.

	
Lexington Fort Street Trustee LLC

 

	
21.

	
Lexington High Point Manager LLC

  

F-10-(B)

  

 

	
22.

	
Lexington Honolulu Manager LLC

 

	
23.

	
Lexington LAC Lenexa GP LLC

 

	
24.

	
Lexington Lake Forest Manager LLC

 

	
25.

	
Lexington Louisville Manager LLC

 

	
26.

	
Lexington MLP Westerville Manager LLC

 

	
27.

	
Lexington Olive Branch Manager LLC

 

	
28.

	
Lexington Realty Advisors, Inc.

 

	
29.

	
Lexington Shelby GP LLC

 

	
30.

	
Lexington Southfield LLC

 

	
31.

	
Lexington Tampa GP LLC

 

	
32.

	
Lexington Toy Trustee LLC

 

	
33.

	
Lexington Wallingford Manager LLC

 

	
34.

	
Lexington Waxahachie Manager LLC

 

	
35.

	
Lex-Property Holdings LLC

 

	
36.

	
LSAC Crossville Manager LLC

 

	
37.

	
LSAC Operating Partnership L.P.

 

	
38.

	
LXP I, L.P.

 

	
39.

	
MLP Unit Pledge GP LLC

 

	
40.

	
MLP Unit Pledge L.P.

 

	
41.

	
Newkirk Altenn GP LLC

 

	
42.

	
Newkirk Avrem GP LLC

 

	
43.

	
Newkirk Basot GP LLC

 

	
44.

	
Newkirk Carolion GP LLC

 

	
45.

	
Newkirk Clifmar GP LLC

 

	
46.

	
Newkirk Dalhill GP LLC

  

F-11-(B)

  

 

	
47.

	
Newkirk Elway GP LLC

 

	
48.

	
Newkirk Gersant GP LLC

 

	
49.

	
Newkirk Jacway GP LLC

 

	
50.

	
Newkirk JLE Way GP LLC

 

	
51.

	
Newkirk Johab GP LLC

 

	
52.

	
Newkirk Lanmar GP LLC

 

	
53.

	
Newkirk Liroc GP LLC

 

	
54.

	
Newkirk MLP Unit LLC

 

	
55.

	
Newkirk Orper GP LLC

 

	
56.

	
Newkirk Sablemart GP LLC

 

	
57.

	
Newkirk Salistown GP LLC

 

	
58.

	
Newkirk Sunway GP LLC

 

	
59.

	
Newkirk Superwest GP LLC

 

	
60.

	
Newkirk Walando GP LLC

 

	
61.

	
Newkirk Washtex GP LLC

 

	
62.

	
NK-CINN Hamilton Property Manager LLC

 

	
63.

	
NK-Lumberton Property Manager LLC

 

	
64.

	
NK-ODW/Columbus Property Manager LLC

 

	
65.

	
Phoenix Hotel Associates Limited Partnership (Secretary of State of the State of Arizona)

  

F-12-(B)

  

EXHIBIT G

FORM OF COMPLIANCE CERTIFICATE

PRIVATE INFORMATION

Reference is made to the Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given to them in the Term Loan Agreement.

Pursuant to Section 9.3 of the Term Loan Agreement, the undersigned hereby certifies to the Administrative Agent and the Lenders that:

1.           (a) The undersigned has reviewed the terms of the Term Loan Agreement and has made a review of the transactions, financial condition and other affairs of the Trust and its Subsidiaries as of, and during the relevant accounting period ending on, _______________, 20__.

2.           Schedule 1 attached hereto accurately and completely sets forth the calculations required to establish compliance with Sections 9.1., 9.2. and 9.4. of the Term Loan Agreement on the date of the financial statements for the accounting period set forth above.

3.           Attached hereto as Schedule 2 are reasonably detailed calculations establishing calculation of Borrowing Base Availability under the Term Loan Agreement.

4.           To the best of the undersigned’s knowledge, information and belief after due inquiry, no Default or Event of Default exists [except as set forth on Attachment A hereto, which specifies such Default or Event of Default and its nature, when it occurred and whether it is continuing and the steps being taken by the Borrowers with respect to such event, condition or failure].

5.           The representations and warranties of the Borrowers and the other Loan Parties contained in the Term Loan Agreement and the other Loan Documents to which any is a party are true and correct in all material respects as of the date hereof, except to the extent that such representations or warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Term Loan Agreement or the other Loan Documents.

  

G-1

  

IN WITNESS WHEREOF, the undersigned has signed this Compliance Certificate on and as of ___________, 20__.

	  	  	  	  
	  	
Name: 

	  	  
	  	
Title:

	  	  

  

G-2

  

Schedule 1

[Calculations to be Attached]

  

G-3

  

Schedule 2

[Calculations to be Attached]

  

G-4

  

EXHIBIT H

FORM OF GUARANTY

THIS GUARANTY dated as of January 13, 2012 executed and delivered by each of the undersigned and the other Persons from time to time party hereto pursuant to the execution and delivery of an Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such other Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the Lenders under that certain Term Loan Agreement dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), the Administrative Agent, and the other parties thereto, for its benefit and the benefit of the Lenders (the Administrative Agent and the Lenders, each individually a “Guarantied Party” and collectively, the “Guarantied Parties”).

WHEREAS, pursuant to the Term Loan Agreement, the Lenders have agreed to make available to the Borrowers certain financial accommodations on the terms and conditions set forth in the Term Loan Agreement;

WHEREAS, each Guarantor is owned or controlled by a Borrower, or is otherwise an Affiliate of the Borrowers;

WHEREAS, the Borrowers, each Guarantor and the Subsidiaries of the Borrowers, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Lenders through their collective efforts;

WHEREAS, each Guarantor acknowledges that it will receive direct and indirect benefits from the Lenders making such financial accommodations available to the Borrowers under the Term Loan Agreement, and, accordingly, each Guarantor is willing to guarantee the Borrowers’ obligations to the Administrative Agent and the Lenders on the terms and conditions contained herein; and

WHEREAS, each Guarantor’s execution and delivery of this Guaranty is a condition to the Guarantied Parties’ making, and continuing to make, such financial accommodations to the Borrowers.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each Guarantor, each Guarantor agrees as follows:

  

H-1

  

Section 1.  Guaranty.  Each Guarantor hereby absolutely, irrevocably and unconditionally guaranties the due and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all of the following (collectively referred to as the “Guarantied Obligations”): (a) all indebtedness and obligations owing by the Borrowers or any other Loan Party to any Lender or the Administrative Agent under or in connection with the Term Loan Agreement and any other Loan Document to which any Borrower or such other Loan Party is a party, including without limitation, the repayment of all principal of the Loans and the payment of all interest, fees, charges, reasonable attorneys’ fees and other amounts payable to any Lender or the Administrative Agent thereunder or in connection therewith; (b) any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (c) all expenses, including, without limitation, reasonable attorneys’ fees and disbursements, that are incurred by the Administrative Agent or any other Guarantied Party in the enforcement of any of the foregoing or any obligation of such Guarantor hereunder; and (d) all other Obligations.

Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment, and not of collection, and a debt of each Guarantor for its own account.  Accordingly, the Guarantied Parties shall not be obligated or required before enforcing this Guaranty against any Guarantor: (a) to pursue any right or remedy the Guarantied Parties may have against any Borrower, any other Loan Party or any other Person or commence any suit or other proceeding against any Borrower, any other Loan Party or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of any Borrower, any other Loan Party or any other Person; or (c) to make demand of  any Borrower, any other Loan Party or any other Person or to enforce or seek to enforce or realize upon any collateral security held by the Guarantied Parties which may secure any of the Guarantied Obligations.

Section 3.  Guaranty Absolute.  Each Guarantor guarantees that the Guarantied Obligations will be paid strictly in accordance with the terms of the documents evidencing the same, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Guarantied Parties with respect thereto.  The liability of each Guarantor under this Guaranty shall be absolute, irrevocable and unconditional in accordance with its terms and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever, including without limitation, the following (whether or not such Guarantor consents thereto or has notice thereof):

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

  

H-2

  

(b)         any lack of validity or enforceability of the Term Loan Agreement or any of the other Loan Documents or any other document, instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

(c)         any furnishing to the Guarantied Parties of any security for the Guarantied Obligations, or any sale, exchange, release or surrender of, or realization on, any collateral securing any of the Guarantied Obligations;

(d)         any settlement or compromise of any of the Guarantied Obligations, any security therefor, or any liability of any other party with respect to the Guarantied Obligations, or any subordination of the payment of the Guarantied Obligations to the payment of any other liability of any Borrower or any other Loan Party;

(e)         any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to such Guarantor, any Borrower, any other Loan Party or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any court, in any such proceeding;

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

(g)         any nonperfection or impairment of any security interest or other Lien on any collateral, if any, securing in any way any of the Guarantied Obligations;

(h)         any application of sums paid by any Borrower, any Guarantor or any other Person with respect to the liabilities of any Borrower to the Guarantied Parties, regardless of what liabilities of the Borrowers remain unpaid;

(i)          any defect, limitation or insufficiency in the borrowing powers of any Borrower or in the exercise thereof;

(j)          any defense, set off, claim or counterclaim (other than indefeasible payment and performance in full) which any at any time be available to or be asserted by any Borrower, any other Loan Party or any other Person against the Administrative Agent or any Lender;

(k)         any change in corporate existence, structure or ownership of any Borrower or any other Loan Party;

(l)          any statement, representation or warranty made or deemed made by or on behalf of any Borrower, any Guarantor or any other Loan Party under any Loan Document, or any amendment hereto or thereto, proves to have been incorrect or misleading in any respect; or

  

H-3

  

(m)        any other circumstance which might otherwise constitute a defense available to, or a discharge of, a Guarantor hereunder (other than indefeasible payment and performance in full), including, without limitation, suretyship defenses, all of which are hereby expressly WAIVED by each Guarantor.

Section 4.  Action with Respect to Guarantied Obligations.  The Guaranteed Parties may, at any time and from time to time, without the consent of, or notice to, any Guarantor, and without discharging any Guarantor from its obligations hereunder, take any and all actions described in Section 3. of this Guaranty and may otherwise: (a) amend, modify, alter or supplement the terms of any of the Guarantied Obligations, including, but not limited to, extending or shortening the time of payment of any of the Guarantied Obligations or changing the interest rate that may accrue on any of the Guarantied Obligations; (b) amend, modify, alter or supplement the Term Loan Agreement or any other Loan Document; (c) sell, exchange, release or otherwise deal with all, or any part, of any collateral securing any of the Guarantied Obligations; (d) release any Loan Party or other Person liable in any manner for the payment or collection of any of the  Guarantied Obligations; (e) exercise, or refrain from exercising, any rights against any Borrower, any other Loan Party or any other Person; and (f) apply any sum, by whomsoever paid or however realized, to the Guarantied Obligations in such order as the Guarantied Parties shall elect.

Section 5.  Representations and Warranties.  Each Guarantor hereby makes to the Administrative Agent and the other Guarantied Parties all of the representations and warranties made by the Borrowers with respect to or in any way relating to such Guarantor in the Term Loan Agreement and the other Loan Documents, as if the same were set forth herein in full.

Section 6.  Covenants.  Each Guarantor will comply with all covenants with which the Borrowers are to cause such Guarantor to comply under the terms of the Term Loan Agreement or any of the other Loan Documents.

Section 7.  Waiver.  Each Guarantor, to the fullest extent permitted by Applicable Law, hereby waives notice of acceptance hereof or any presentment, demand, protest or notice of any kind, and any other act or thing, or omission or delay to do any other act or thing, which in any manner or to any extent might vary the risk of such Guarantor or which otherwise might operate to discharge such Guarantor from its obligations hereunder.

Section 8.  Inability to Accelerate.  If the Guarantied Parties or any of them are prevented under Applicable Law or otherwise from demanding or accelerating payment of any of the Guarantied Obligations by reason of any automatic stay or otherwise, the Administrative Agent and/or the other Guarantied Parties shall be entitled to receive from each Guarantor, upon demand therefor, the sums which otherwise would have been due had such demand or acceleration occurred.

  

H-4

  

Section 9.  Reinstatement of Guarantied Obligations.  If claim is ever made on the Administrative Agent or any other Guarantied Party for repayment or recovery of any amount or amounts received in payment or on account of any of the Guarantied Obligations, and the Administrative Agent or such other Guarantied Party repays all or part of said amount by reason of (a) any judgment, decree or order of any court or administrative body of competent jurisdiction, or (b) any settlement or compromise of any such claim effected by the Administrative Agent or such other Guarantied Party with any such claimant (including any Borrower or a trustee in bankruptcy for any Borrower), then and in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on it, notwithstanding any revocation hereof or the cancellation of the Term Loan Agreement, any of the other Loan Documents, or any other instrument evidencing any liability of any Borrower, and such Guarantor shall be and remain liable to the Administrative Agent or such other Guarantied Party for the amounts so repaid or recovered to the same extent as if such amount had never originally been paid to the Administrative Agent or such other Guarantied Party.

Section 10.  Subrogation.  Upon the making by any Guarantor of any payment hereunder for the account of any Borrower, such Guarantor shall be subrogated to the rights of the payee against such Borrower; provided, however, that such Guarantor shall not enforce any right or receive any payment by way of subrogation or otherwise take any action in respect of any other claim or cause of action such Guarantor may have against such Borrower arising by reason of any payment or performance by such Guarantor pursuant to this Guaranty, unless and until all of the Guarantied Obligations have been indefeasibly paid and performed in full.  If any amount shall be paid to such Guarantor on account of or in respect of such subrogation rights or other claims or causes of action, such Guarantor shall hold such amount in trust for the benefit of the Guarantied Parties and shall forthwith pay such amount to the Administrative Agent to be credited and applied against the Guarantied Obligations, whether matured or unmatured, in accordance with the terms of the Term Loan Agreement or to be held by the Administrative Agent as collateral security for any Guarantied Obligations existing.

Section 11. Payments Free and Clear.  All sums payable by each Guarantor hereunder, whether of principal, interest, fees, expenses, premiums or otherwise, shall be paid in full, without set-off or counterclaim or any deduction or withholding whatsoever (including any Taxes), and if such Guarantor is required by Applicable Law or by any Governmental Authority to make any such deduction or withholding such Guarantor shall pay to the Administrative Agent and the Lenders such additional amount as will result in the receipt by the Administrative Agent and the Lenders of the full amount payable hereunder had such deduction or withholding not occurred or been required.

Section 12.  Set-off.  In addition to any rights now or hereafter granted under any of the other Loan Documents or Applicable Law and not by way of limitation of any such rights, subject to the terms of the Intercreditor Agreement, each Guarantor hereby authorizes each Guarantied Party, each Affiliate of a Guarantied Party and each Participant, at any time while an Event of Default exists, without any prior notice to such Guarantor or to any other Person, any such notice being hereby expressly waived, but in the case of a Lender, each Affiliate of a Guarantied Party or a Participant subject to receipt of the prior written consent of the Requisite Lenders, exercised in their sole discretion, to set-off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Administrative Agent, such Lender, or such Participant or any Affiliate of the Administrative Agent, or such Lender to or for the credit or the account of such Guarantor against and on account of any of the Guarantied Obligations, although such obligations shall be contingent or unmatured.  Each Guarantor agrees, to the fullest extent permitted by Applicable Law, that any Participant may exercise rights of setoff or counterclaim and other rights with respect to its participation as fully as if such Participant were a direct creditor of such Guarantor in the amount of such participation.

  

H-5

  

Section 13.  Subordination.  Each Guarantor hereby expressly covenants and agrees for the benefit of the Guarantied Parties that all obligations and liabilities of any Borrower to such Guarantor of whatever description, including without limitation, all intercompany receivables of such Guarantor from such Borrower (collectively, the “Junior Claims”) shall be subordinate and junior in right of payment to all Guarantied Obligations.  If an Event of Default shall exist, then no Guarantor shall accept any direct or indirect payment (in cash, property or securities, by setoff or otherwise) from any Borrower on account of or in any manner in respect of any Junior Claim until all of the Guarantied Obligations have been indefeasibly paid in full.

Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the Administrative Agent and the other Guarantied Parties that in any Proceeding, such Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties) to be avoidable or unenforceable against such Guarantor in such Proceeding as a result of Applicable Law, including, without limitation, (a) Section 548 of the Bankruptcy Code and (b) any state fraudulent transfer or fraudulent conveyance act or statute applied in such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise.  The Applicable Laws under which the possible avoidance or unenforceability of the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties) shall be determined in any such Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the obligations of any Guarantor hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Guarantied Obligations for which such Guarantor shall be liable hereunder shall be reduced to that amount which, as of the time any of the Guarantied Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of any Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties), to be subject to avoidance under the Avoidance Provisions.  This Section is intended solely to preserve the rights of the Administrative Agent and the other Guarantied Parties hereunder to the maximum extent that would not cause the obligations of any Guarantor hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor or any other Person shall have any right or claim under this Section as against the Guarantied Parties that would not otherwise be available to such Person under the Avoidance Provisions.

Section 15.  Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Borrowers and the other Loan Parties, and of all other circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that neither of the Administrative Agent nor any other Guarantied Party shall have any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

  

H-6

  

Section 16.  Governing Law.  THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

SECTION 17.  WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION; VENUE.

(a)          EACH GUARANTOR, AND EACH OF THE ADMINISTRATIVE AGENT AND THE OTHER GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF, ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN SUCH GUARANTOR, THE ADMINISTRATIVE AGENT OR ANY OF THE OTHER GUARANTIED PARTIES WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE GUARANTORS, AND THE ADMINISTRATIVE AGENT AND THE OTHER GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS GUARANTY.

(b)          EACH GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY OTHER GUARANTIED PARTY, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY OTHER GUARANTIED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AGAINST ANY GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM, AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE ADMINISTRATIVE AGENT OR ANY OTHER GUARANTIED PARTY OR THE ENFORCEMENT BY THE ADMINISTRATIVE AGENT OR ANY OTHER GUARANTIED PARTY OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

  

H-7

  

(c)          THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL OF ITS OWN SELECTION AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS GUARANTY.

Section 18.  Loan Accounts.  The Administrative Agent and each Lender may maintain books and accounts setting forth the amounts of principal, interest and other sums paid and payable with respect to the Guarantied Obligations arising under or in connection with the Term Loan Agreement, and in the case of any dispute relating to any of the outstanding amount, payment or receipt of any of such Guarantied Obligations or otherwise, the entries in such books and accounts shall constitute prima facie evidence of amounts and other matters set forth therein.  The failure of the Administrative Agent or any Lender to maintain such books and accounts shall not in any way relieve or discharge any Guarantor of any of its obligations hereunder.

Section 19.  Waiver of Remedies.  No delay or failure on the part of the Administrative Agent or any other Guarantied Party in the exercise of any right or remedy it may have against any Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the Administrative Agent or any other Guarantied Party of any such right or remedy shall preclude any other or further exercise thereof or the exercise of any other such right or remedy.

Section 20.  Termination.  This Guaranty shall remain in full force and effect with respect to each Guarantor until indefeasible payment in full of the Guarantied Obligations.

  

H-8

  

Section 21.  Successors and Assigns.  Each reference herein to the Administrative Agent or any other Guarantied Party shall be deemed to include such Person’s respective successors and assigns (including, but not limited to, any holder of the Guarantied Obligations) in whose favor the provisions of this Guaranty also shall inure, and each reference herein to each Guarantor shall be deemed to include such Guarantor’s successors and permitted assigns, upon whom this Guaranty also shall be binding.  The Guarantied Parties may, in accordance with the applicable provisions of the Term Loan Agreement, assign, transfer or sell any Guarantied Obligation, or grant or sell participations in any Guarantied Obligations, to any Person without the consent of, or notice to, any Guarantor and without releasing, discharging or modifying any Guarantor’s obligations hereunder.  Each Guarantor hereby consents to the delivery by the Administrative Agent and any other Guarantied Party to any Assignee or Participant (or any prospective Assignee or Participant) of any financial or other information regarding any Borrower or any Guarantor.  No Guarantor may assign or transfer its obligations hereunder to any Person without the prior written consent of all Lenders, which consent may be withheld, conditioned or delayed in the Lenders’ sole and exclusive discretion, except as permitted under Section 9.7. of the Term Loan Agreement, and any such assignment or other transfer to which all of the Lenders have not so consented or which is not permitted under Section 9.7. of the Term Loan Agreement shall be null and void.

Section 22.  JOINT AND SEVERAL OBLIGATIONS.  THE OBLIGATIONS OF THE GUARANTORS HEREUNDER SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH GUARANTOR CONFIRMS THAT IT IS LIABLE FOR THE FULL AMOUNT OF THE “GUARANTIED OBLIGATIONS” AND ALL OF THE OBLIGATIONS AND LIABILITIES OF EACH OF THE OTHER GUARANTORS HEREUNDER.

Section 23.  Amendments.  This Guaranty may not be amended except in writing signed by the Administrative Agent and each Guarantor, subject to Section 12.6. of the Term Loan Agreement.

Section 24.  Payments.  All payments to be made by any Guarantor pursuant to this Guaranty shall be made in Dollars, in immediately available funds to the Administrative Agent at its Principal Office, not later than 2:00 p.m. prevailing Eastern time, on the date one Business Day after demand therefor.

Section 25.  Notices.  All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing) and shall be given (a) to each Guarantor at its address set forth below its signature hereto, (b) to the Administrative Agent or any other Guarantied Party at its address for notices provided for in the Term Loan Agreement, as applicable, or (c) as to each such party at such other address as such party shall designate in a written notice to the other parties.  All such notices and other communications shall be effective: (i) if mailed, when received; (ii) if telecopied, when transmitted; (iii) if hand delivered or sent by overnight courier, when delivered; or (iv) if delivered in accordance with Section 12.14. of the Term Loan Agreement to the extent applicable; provided, however, that, in the case of the immediately preceding clauses (i), (ii) and (iii), non-receipt of any communication as the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such communication.

  

H-9

  

Section 26.  Severability.  In case any provision of this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 27.  Headings.  Section headings used in this Guaranty are for convenience only and shall not affect the construction of this Guaranty.

Section 28.  Limitation of Liability.  Neither the Administrative Agent nor any other Guarantied Party, nor any affiliate, officer, director, employee, attorney, agent or representative of the Administrative Agent or any other Guarantied Party, shall have any liability with respect to, and each Guarantor hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by a Guarantor in connection with, arising out of, or in any way related to, this Guaranty or any of the other Loan Documents or any of the transactions contemplated by this Guaranty, the Term Loan Agreement, any of the other Loan Documents or any of the other documents, instruments and agreements evidencing any of the Guarantied Obligations.  Each Guarantor hereby waives, releases, and agrees not to sue the Administrative Agent or any other Guarantied Party or any of the Administrative Agent’s or any other Guarantied Party’s affiliates, officers, directors, employees, attorneys, agents or representatives for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Guaranty, the Term Loan Agreement or any of the other Term Loan Documents, or any of the transactions contemplated by thereby.

Section 29.  Electronic Delivery of Certain Information.  Each Guarantor acknowledges and agrees that information regarding the Guarantor may be delivered electronically pursuant to Section 12.14. of the Term Loan Agreement.

Section 30.  Counterparts.  To facilitate execution, this Guaranty and any amendments, waivers, consents or supplements may be executed in any number of counterparts as may be convenient or required (which may be effectively delivered by facsimile, in portable document format (“PDF”) or other similar electronic means).  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.

Section 31.  Right of Contribution.  The Guarantors hereby agree as among themselves that, if any Guarantor shall make an Excess Payment, such Guarantor shall have a right of contribution from each other Guarantor in an amount equal to such other Guarantor’s Contribution Share of such Excess Payment.  The payment obligations of any Guarantor under this Section shall be subordinate and subject in right of payment to the Obligations until such time as the Obligations have been indefeasibly paid and performed in full and the Commitments have expired or terminated, and none of the Guarantors shall exercise any right or remedy under this Section against any other Guarantor until such Obligations have been indefeasibly paid and performed in full and the Commitments have expired or terminated.  Subject to Section 10 of this Guaranty, this Section shall not be deemed to affect any right of subrogation, indemnity, reimbursement or contribution that any Guarantor may have under Applicable Law against any Borrower in respect of any payment of Guarantied Obligations.  Notwithstanding the foregoing, all rights of contribution against any Guarantor shall terminate from and after such time, if ever, that such Guarantor shall cease to be a Guarantor in accordance with the applicable provisions of the Loan Documents.

  

H-10

  

 

Section 32.  Definitions.  (a) For the purposes of this Guaranty:

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights.

“Contribution Share” means, for any Guarantor in respect of any Excess Payment made by any other Guarantor, the ratio (expressed as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of the Loan Parties other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Loan Parties) of the Loan Parties other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Guarantors in respect of any Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess Payment shall be deemed to have been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such Excess Payment.

“Excess Payment” means the amount paid by any Guarantor in excess of its Ratable Share of any Guarantied Obligations.

“Proceeding” means any of the following:  (i) a voluntary or involuntary case concerning any Guarantor shall be commenced under the Bankruptcy Code; (ii) a custodian (as defined in such Bankruptcy Code or any other applicable bankruptcy laws) is appointed for, or takes charge of, all or any substantial part of the property of any Guarantor; (iii) any other proceeding under any Applicable Law, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up or composition for adjustment of debts, whether now or hereafter in effect, is commenced relating to any Guarantor; (iv) any Guarantor is adjudicated insolvent or bankrupt; (v) any order of relief or other order approving any such case or proceeding is entered by a court of competent jurisdiction; (vi) any Guarantor makes a general assignment for the benefit of creditors; (vii) any Guarantor shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; (viii) any Guarantor shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) any Guarantor shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or (x) any corporate action shall be taken by any Guarantor for the purpose of effecting any of the foregoing.

 

  

H-11

  

“Ratable Share” means, for any Guarantor in respect of any payment of Guarantied Obligations, the ratio (expressed as a percentage) as of the date of such payment of Guarantied Obligations of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of all of the Loan Parties exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Loan Parties hereunder) of the Loan Parties; provided, however, that, for purposes of calculating the Ratable Shares of the Guarantors in respect of any payment of Guarantied Obligations, any Guarantor that became a Guarantor subsequent to the date of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial information for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment.

(b)           Terms not otherwise defined herein are used herein with the respective meanings given them in the Term Loan Agreement.

[Signatures on Following Page]

  

H-12

  

IN WITNESS WHEREOF, each Guarantor has duly executed and delivered this Guaranty as of the date and year first written above.

	  	
[GUARANTOR]

	 
	  	  	 
	  	
By:

	  	 
	  	  	
Name: 

	  	 
	  	  	
Title:

	  	 
	  	  	 
	  	  	 
	  	
Address for Notices for all Guarantors:

	 
	  	  	 
	  	
c/o Lexington Realty Trust

	 
	  	
One Penn Plaza, Suite 4015

	 
	  	
New York, New York  10119

	 
	  	
Attention:      Patrick Carroll

	 
	  	
Telecopier:    (212) 594-6600

	 
	
 

	
Telephone:    (212) 692-7215

	 

 

  

H-13

  

ANNEX I

FORM OF ACCESSION AGREEMENT

THIS ACCESSION AGREEMENT dated as of ____________, ____, executed and delivered by ______________________, a _____________ (the “New Guarantor”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the Lenders under that certain Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties thereto, for its benefit and the benefit of the Lenders (the Administrative Agent and the Lenders, each individually a “Guarantied Party” and collectively, the “Guarantied Parties”).

WHEREAS, pursuant to the Term Loan Agreement, the Lenders have agreed to make available to the Borrowers certain financial accommodations on the terms and conditions set forth in the Term Loan Agreement;

WHEREAS, the New Guarantor is owned or controlled by a Borrower, or is otherwise an Affiliate of the Borrowers;

WHEREAS, the Borrowers, the New Guarantor and the other Subsidiaries of the Borrowers, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Lenders through their collective efforts;

WHEREAS, the New Guarantor acknowledges that it will receive direct and indirect benefits from the Lenders making such financial accommodations available to the Borrowers under the Term Loan Agreement, and, accordingly, the New Guarantor is willing to guarantee the Borrowers’ obligations to the Administrative Agent and the Lenders on the terms and conditions contained herein; and

WHEREAS, the New Guarantor’s execution and delivery of this Agreement is a condition to the Lenders continuing to make such financial accommodations to the Borrowers.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the New Guarantor, the New Guarantor agrees as follows:

Section 1.  Accession to Guaranty.  The New Guarantor hereby agrees that it is a “Guarantor” under the Guaranty dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”), made by the Guarantors party thereto in favor of the Administrative Agent, for its benefit and the benefit of the other Guarantied Parties and assumes all obligations of a “Guarantor” thereunder, all as if the New Guarantor had been an original signatory to the Guaranty.  Without limiting the generality of the foregoing, the New Guarantor hereby:

  

H-14

  

(a)           irrevocably and unconditionally guarantees the due and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all Guarantied Obligations (as defined in the Guaranty);

(b)           makes to the Administrative Agent and the other Guarantied Parties as of the date hereof each of the representations and warranties contained in Section 5 of the Guaranty and agrees to be bound by each of the covenants contained in Section 6 of the Guaranty; and

(c)           consents and agrees to each provision set forth in the Guaranty.

SECTION 2.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

Section 3.  Definitions.  Capitalized terms used herein and not otherwise defined herein shall have their respective defined meanings given them in the Term Loan Agreement.

[Signatures on Next Page]

 

  

H-15

  

IN WITNESS WHEREOF, the New Guarantor has caused this Accession Agreement to be duly executed and delivered under seal by its duly authorized officers as of the date first written above.

	  	
[NEW GUARANTOR]

	 
	  	  	 
	  	
By:

	  	 
	  	  	
Name: 

	  	 
	  	  	
Title:

	  	 
	  	  	 
	  	
(CORPORATE SEAL)

	 
	  	  	 
	  	
Address for Notices:

	 
	  	  	 
	  	
c/o Lexington Realty Trust

	 
	  	
One Penn Plaza, Suite 4015

	 
	  	
New York, New York  10119

	 
	  	
Attention:      Patrick Carroll

	 
	  	
Telecopier:    (212) 594-6600

	 
	  	
Telephone:    (212) 692-7215

	 

	
Accepted:

	 
	  	 
	
WELLS FARGO BANK, NATIONAL

	 
	
ASSOCIATION, as Administrative Agent

	 
	  	 
	
By:

	  	 
	  	
Name: 

	  	 
	  	
Title:

	  	 

 

  

H-16

  

EXHIBIT I

 

FORM OF BORROWING BASE CERTIFICATE

PRIVATE INFORMATION

_____________ __, 20__

Reference is made to the Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties thereto.  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given to them in the Term Loan Agreement.

(1)           The undersigned is the _____________________ of the Trust.

(2)           The undersigned has examined the books and records of the Trust and has conducted such other examinations and investigations as are reasonably necessary to provide this Borrowing Base Certificate.

(4)           To the best of the undersigned’s knowledge, information and belief after due inquiry, no Default or Event of Default exists [except as set forth on Attachment A hereto, which specifies such Default or Event of Default and its nature, when it occurred and whether it is continuing and the steps being taken by the Borrowers with respect to such event, condition or failure)].

(5)           The representations and warranties of the Borrowers and the other Loan Parties contained in the Term Loan Agreement and the other Loan Documents are true and correct in all material respects, except to the extent such representations or warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Term Loan Agreement or the other Loan Documents.

(6)           Attached hereto as Schedule 1 are reasonably detailed calculations establishing calculation of Borrowing Base Availability under the Term Loan Agreement.

[Signature on next page]

  

I-1

  

IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date first above written.

	  	  	 
	  	
Name: 

	  	 
	  	
Title:

	  	 

 

  

I-2

  

Schedule 1

[Calculations to be Attached]

  

I-3

  

EXHIBIT J

 

	  
	
ELIGIBLE PROPERTIES

As long as the Commitments are outstanding or there remain any Obligations to be paid or performed under the Term Loan Agreement or under any other Loan Document, the Borrowers represent and warrant that as to each Property that is a Borrowing Base Asset:

1.        A Property Subsidiary is the sole legal and equitable owner in fee simple of the Property or a lessee under a valid Ground Lease of the Property or a holder of a valid estate for years in respect the Property, free and clear of all Liens or any ownership interest of any other Person, has full right, power and authority to own, lease or hold the Property, and all consents required to transfer ownership of, or leasehold or estate rights in, the Property to the Property Subsidiary have been obtained.

 

2.         The Borrowers have conducted their customary due diligence and review with respect to the Property, including inspection of the Property, and such customary due diligence and review have not revealed facts that would adversely affect the value of the Property.

 

3.         The Borrowers have complied with all applicable conditions set forth in the Term Loan Agreement to the inclusion and retention of the Property in the Borrowing Base Assets Pool.

 

4.         The Property complies with all Environmental Laws except where the failure to comply would not have a Material Adverse Effect and is free of any material structural defect.

 

5.         The Property is located in one of the states of the United States or the District of Columbia.

 

6.         The Property is a commercial office, retail or industrial property or a mixed-use property.

 

7.         All real estate taxes and governmental assessments, or installments thereof, which would be a lien on the Property and that have become delinquent in respect of the Property have been paid or an escrow of funds in an amount sufficient to cover such payments has been established.

 

8.         One or more engineering assessments were performed and prepared by an independent engineering consultant firm prior to the acquisition of the  Property  by the Borrowers or one of their Affiliates, and, except as set forth in an engineering report prepared in connection with such assessment, a copy of which has been delivered to the Borrowers,  the Property is, to the Borrowers’ knowledge, in good repair, free and clear of any damage that would materially and adversely affect its value.

 

  

J-1

  

 

9.         There is no proceeding pending, and neither the Borrowers nor any of their Subsidiaries or Affiliates have received notice of any pending or threatening proceeding for the condemnation of all or any material portion of the Property.

 

10.       The Borrowers have received an owner’s title insurance policy, in ALTA form or equivalent, (or if such policy has not yet been issued, such insurance may be evidenced by escrow instructions, a “marked up” pro forma or specimen policy or title commitment, in either case, marked as binding and countersigned by the title insurer or its authorized agent at the closing of the related acquisition) as adopted in the applicable jurisdiction (the “Title Insurance Policy”), which to the knowledge of the Borrowers, was issued by a recognized title insurance company qualified to do business in the jurisdiction where the Property is located and neither the Borrowers nor any of their Subsidiaries or Affiliates have done, by act or omission, and the Borrowers have no knowledge of, anything that would impair the coverage under such Title Insurance Policy. Such Title Insurance Policy has been issued for the benefit of the Borrowers or the applicable Property Subsidiary, and contains no material exclusions for, or affirmatively insures against any losses arising from (other than in jurisdictions in which affirmative insurance is unavailable) (a) failure to have access to a public road, and (b) material encroachments of any part of the building thereon over easements.

 

11.       The Property is covered by (a) a fire and extended perils included within the classification “All Risk of Physical Loss” insurance policy in an amount (subject to a customary deductible) equal to the replacement cost of improvements (excluding foundations) located on the Property, and in any event, the amount necessary to avoid the operation of any co-insurance provisions; (b) business interruption or rental loss insurance in an amount at least equal to 12 months of operations of the Property; and (c) comprehensive general liability insurance against claims for personal and bodily injury, death or property damage occurring on, in or about the Property in an amount customarily, but not less than $1 million.  All triple net lessees of any Property located in seismic zone 3 or 4 are required to carry earthquake insurance if the Probable Maximum Loss (“PML”) for such property would exceed 20% of the replacement cost of the insurance. Such determination is the responsibility of the lessee.  Earthquake insurance, if required, on the Property must be obtained by an insurer rated at least “A-:V” (or the equivalent) by A.M. Best Company or “BBB-” (or the equivalent) from S&P or “Baa3” (or the equivalent) from Moody’s. To the Borrowers’ knowledge, the insurer with respect to each policy is qualified to write insurance in the relevant jurisdiction to the extent required.

 

12.       To the knowledge of the Borrowers, there are no material violations of any applicable zoning ordinances, building codes and land laws applicable to the Property or the use and occupancy thereof which would have a material adverse effect on the value, operation or net operating income of the Property.

 

13.       To the knowledge of the Borrowers, based solely on surveys and/or the title policy referred to herein obtained in connection with the origination of each loan, either (i) none of the material improvements which were included for the purposes of determining the appraised value of the Property lies outside of the boundaries and building restriction lines of the property or (ii) the Property is a legal non-conforming use, to an extent which would have a material adverse affect on the value of the Property and no improvements on adjoining properties encroached upon the Property to any material and adverse extent.

 

  

J-2

  

 

14.       To the knowledge of the Borrowers, there is no pending action, suit or proceeding, arbitration or governmental investigation against the owner of or relating to any Property, an adverse outcome of which could reasonably be expected to materially and adversely affect the value or current use of such Property.

 

15.       The Property is either not located in a federally designated special flood hazard area or, if so located, the Borrowers or the tenants or tenant maintain flood insurance with respect to such improvements and such policy is in full force and effect in an amount no less than the lesser of (i) the value of the Property located in such flood hazard area or (ii) the maximum allowed under the related federal flood insurance program.

 

16.       The Property is treated as a real estate asset for purposes of Section 856(c) of the Code, and the interest or other payments payable pursuant to such security is treated as interest on an obligation secured by a mortgage on real property or on an interest in real property for purposes of Section 856(c) of the Code.

 

17.       Under the terms of the documents relating to the Property, any related insurance proceeds or condemnation award will be applied either to the principal amount outstanding under the loan or to the repair or restoration of all or part of the Property (except in such cases where a provision entitling another party to hold and disburse such proceeds would not be viewed as commercially unreasonable by a prudent commercial mortgage lender) in an amount equal to the greater of (x) the replacement costs for the Property or (y) the acquisition costs for the Property (subject, in the case of condemnation awards, to the rights of the lessor in the Ground Lease (as defined in Section 21 below)). As of the Closing Date, neither the Borrowers nor any of their Subsidiaries or Affiliates has submitted a claim for the repair and restoration of the Property following the occurrence of a material casualty event.

 

18.       In the case of a Property that constitutes an interest of a Property Subsidiary as a lessee under a ground lease of a property (a “Ground Lease”) (the term Ground Lease shall mean such ground lease, all written amendments and modifications, and any related estoppels or agreements from the ground lessor), but not by the related fee interest in such property (the “Fee Interest”), the following shall be true and correct:

 

(a)           There has been no material change in the term of such Ground Lease, the payment terms under such Ground Lease or any renewal options under such Ground Lease since its recordation;

(b)           Such Ground Lease is not subject to any liens or encumbrances; and

(c)           Such Ground Lease is in full force and effect, and no material default has occurred under such Ground Lease as of the Closing Date.

  

J-3

  

19.       There is no mortgage, deed of trust or similar instrument encumbering  the Property.

 

20.       The Property Subsidiary which owns the Property has no Indebtedness other than as permitted under the Term Loan Agreement.

 

SPECIAL COVENANTS CONCERNING PROPERTIES

 

As long as the Commitments are outstanding or there remain any Obligations to be paid or performed under the Term Loan Agreement or under any other Loan Document, the Borrowers, with respect to each Property:

	
  

	
(a)

	
shall defend the right, title and interest of the applicable Property Subsidiary in and to the Property against the claims and demands of all Persons.

 

	
  

	
(b)

	
shall cause the Property to be managed in accordance with the policies and procedures customary for assets of a type such as the Property.

 

	
  

	
(c)

	
shall review its policies and procedures periodically to confirm that the policies and procedures are being complied with in all material respects and are adequate to meet the Borrowers’ business objectives with respect to the Property.

 

  

J-4

  

 

EXHIBIT K

	
Street Address

	  	
City

	  	
State

	
12209 W. Markham Street

	  	
Little Rock

	  	
AR

	
13430 N. Black Canyon Freeway

	  	
Phoenix

	  	
AZ

	
10415 Grande Avenue

	  	
Sun City

	  	
AZ

	
3333 Coyote Hill Road

	  	
Palo Alto

	  	
CA

	
100 Barnes Road

	  	
Wallingford

	  	
CT

	
4200/4300 RCA Boulevard

	  	
Palm Beach Gardens

	  	
FL

	
Sandlake Rd./Kirkman Rd.

	  	
Orlando

	  	
FL

	
2455 Premier Drive

	  	
Orlando

	  	
FL

	
3102 Queen Palm Drive

	  	
Tampa

	  	
FL

	
550 Business Center Drive

	  	
Lake Mary

	  	
FL

	
600 Business Center Drive

	  	
Lake Mary

	  	
FL

	
2223 North Druid Hills Road

	  	
Atlanta

	  	
GA

	
956 Ponce de Leon Avenue

	  	
Atlanta

	  	
GA

	
4545 Chamblee-Dunwoody Road

	  	
Chamblee

	  	
GA

	
201 West Main Street

	  	
Cumming

	  	
GA

	
1066 Main Street

	  	
Forest Park

	  	
GA

	
825 Southway Drive

	  	
Jonesboro

	  	
GA

	
1698 Mountain Indus. Blvd.

	  	
Stone Mountain

	  	
GA

	
King Street

	  	
Honolulu

	  	
HI

	
5104 North Franklin Road

	  	
Lawrence

	  	
IN

	
11201 Renner Boulevard

	  	
Lenexa

	  	
KS

	
2300 Litton Lane

	  	
Hebron

	  	
KY

	
1901 Ragu Drive

	  	
Owensboro

	  	
KY

	
205 Homer Road

	  	
Minden

	  	
LA

	
26555 Northwestern Highway

	  	
Southfield

	  	
MI

	
1601 Pratt Avenue

	  	
Marshall

	  	
MI

	
3165 McKelvey Road

	  	
Bridgeton

	  	
MO

	
7670 Hacks Cross Road

	  	
Olive Branch

	  	
MS

	
24th St. W. & St. John's Ave.

	  	
Billings

	  	
MT

	
250 Swathmore Avenue

	  	
High Point

	  	
NC

	
1133 Poplar Creek Road

	  	
Henderson

	  	
NC

	
Julian Avenue/Clominger St.

	  	
Thomasville

	  	
NC

	
2880 Kenny Biggs Road

	  	
Lumberton

	  	
NC

	
US 221 & Hospital Road

	  	
Jefferson

	  	
NC

	
291 Talbert Blvd.

	  	
Lexington

	  	
NC

	
900 South Canal Street

	  	
Carlsbad

	  	
NM

	
130 Midland Avenue

	  	
Port Chester

	  	
NY

	
200 Arrowhead Drive

	  	
Hebron

	  	
OH

 

  

K-1

  

	
Street Address

	  	
City

	  	
State

	
4831 Whipple Avenue, N.W.

	  	
Canton

	  	
OH

	
1084 E. Second Street

	  	
Franklin

	  	
OH

	
1650-1654 William Road

	  	
Columbus

	  	
OH

	
10590 Hamilton Ave

	  	
Cincinnati

	  	
OH

	
500 Olde Worthington Road

	  	
Westerville

	  	
OH

	
6910 S. Memorial Highway

	  	
Tulsa

	  	
OK

	
N.E.C. 45th St./Lee Blvd.

	  	
Lawton

	  	
OK

	
12535 S.E. 82nd Avenue

	  	
Clackamas

	  	
OR

	
399 Peachwood Centre Dr.

	  	
Spartanburg

	  	
SC

	
S. Carolina 52/52 Bypass

	  	
Moncks Corner

	  	
SC

	
50 Tyger River Drive

	  	
Duncan

	  	
SC

	
2210 Enterprise Drive

	  	
Florence

	  	
SC

	
3350 Miac Cove Road

	  	
Memphis

	  	
TN

	
900 Industrial Boulevard

	  	
Crossville

	  	
TN

	
477 Distribution Pkwy.

	  	
Collierville

	  	
TN

	
1600 East 23rd St.

	  	
Chattanooga

	  	
TN

	
1053 Mineral Springs road

	  	
Paris

	  	
TN

	
3456 Meyers Avenue

	  	
Memphis

	  	
TN

	
2425 Highway 77 North

	  	
Waxahachie

	  	
TX

	
1610 S. Westmoreland Ave.

	  	
Dallas

	  	
TX

	
3451 Alta Mesa Blvd.

	  	
Fort Worth

	  	
TX

	
4811 Wesley Street

	  	
Greenville

	  	
TX

	
4121 South Port Avenue

	  	
Corpus Christi

	  	
TX

	
402 East Crestwood Drive

	  	
Victoria

	  	
TX

	
101 W. Buckingham Road

	  	
Garland

	  	
TX

	
6555 Sierra Drive

	  	
Irving

	  	
TX

	
400 Butler Farm Road

	  	
Hampton

	  	
VA

	
3211 W. Beverly Street

	  	
Staunton

	  	
VA

	
13651 McLearen Road

	  	
Herndon

	  	
VA

	
291 Park Center Drive

	  	
Winchester

	  	
VA

	
18601 Alderwood Mall  Boulevard

	  	
Lynnwood

	  	
WA

	
9803 Edmonds Way

	  	
Edmonds

	  	
WA

	
NEW 2012 MTG

	  	  	  	  
	
1315 West Century Drive

	  	
Louisville

	  	
CO

	
2000 Eastman Drive

	  	
Milford

	  	
OH

	
26210 Enterprise CT

	  	
Lake Forest

	  	
CA

	
NEW ACQUISITIONS

	  	  	  	  
	
687 Washburn Switch Road

	  	
Shelby

	  	
NC

	
5500 New Albany Road

	  	
Columbus

	  	
OH

	
2221 Schrock Road

	  	
Columbus

	  	
OH

	
333 Three D Systems Circle

	  	
Rock Hill

	  	
SC

 

  

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Street Address

	  	
City

	  	
State

	
601/701 Experian Pkwy

	  	
Allen

	  	
TX

	
New Leases

	  	  	  	  
	
250 Rittenhouse Circle

	  	
Bristol

	  	
PA

	
121 Technology Drive

	
  

	
Durham

	
  

	
NH

 

  

K-3

  

 

Loan No.:  1005052

EXHIBIT L

TRANSFER AUTHORIZER DESIGNATION

(For Disbursement of Loan Proceeds by Funds Transfer)

 ̈ NEW  ̈ REPLACE PREVIOUS DESIGNATION    ̈  ADD    ̈   CHANGE     ̈  DELETE LINE NUMBER    _____  ̈ INITIAL LOAN DISBURSEMENT

The following representatives of Lexington Realty Trust ("Borrower Representative") are authorized to request the disbursement of proceeds of the Loans and initiate funds transfers for Loan Number 1005052 assigned to the term loan facility evidenced by the Term Loan Agreement dated January 13, 2012, by and among the Borrower Representative, LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with Borrower Representative and LCIF, the “Borrowers” and each a “Borrower”), each of the financial institutions initially a signatory thereto together with their assignees under Section 12.5. thereof (the “Lenders”), Wells Fargo Bank, National Association, as the Administrative Agent for the Lenders (the “Administrative Agent”), and the other parties thereto.  The Administrative Agent is authorized to rely on this Transfer Authorizer Designation until it has received a new Transfer Authorizer Designation signed by Borrower Representative, even in the event that any or all of the foregoing information may have changed.

	  	  	
Name

	  	
Title 

	  	
Maximum

Wire 

Amount1

	  	  	  	  	  	  	  
	
1.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
2.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
3.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
4.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
5.

	
  

	  	
  

	  	
  

	  

Initial Loan Disbursement Authorization  o Not Applicable    o  Applicable — The Administrative Agent is hereby authorized to accept wire transfer instructions from ________________ (i.e., specify title company escrow) to be delivered, via fax, email, letter or other method, to the Administrative Agent for title/escrow #_____________ and/or loan #__________.  Said instructions shall include the title/escrow company’s Receiving Party Account Name, city and state, Receiving Party Account Number, the Receiving Party’s (ABA) Routing Number, Maximum Transfer Amount required, Borrowers’ names, title order/escrow number to which the Administrative Agent shall fund the Initial Loan Disbursement under the loan number referenced above.  The amount of said transfer shall not exceed $_______________.  The Borrower Representative acknowledges and agrees that the acceptance of and wire transfer of funds by the Administrative Agent in accordance with the title/escrow company instructions shall be governed by this Transfer Authorizer Designation form and any other Loan Documents.  The Administrative Agent shall not be further required to confirm said wiring instructions received from title/escrow company with any Borrower.  This Initial Loan Disbursement Authorization is in effect until a new authorization request shall be required.  The Borrower Representative shall instruct title/escrow company via a separate letter, to deliver said wiring instructions in writing, directly to the Administrative Agent at its address.  The Borrower Representative also hereby authorizes the Administrative Agent to attach a copy of the title/escrow company’s written wire instructions to this Transfer Authorizer Designation form upon receipt of said instructions.

 

1           Maximum Wire Amount may not exceed the Loan Amount.

  

L-1

  

Loan No.:  1005052

	  	
Beneficiary Bank and Account Holder Information

1.

	  	
Transfer Funds to (Receiving Party Account Name):

 

	  	
Receiving Party Account Number:

 

	  	
Receiving Bank Name, City and State:

	
Receiving Bank Routing (ABA) Number

 

	  	
Maximum Transfer Amount:

 

	  	
Further Credit Information/Instructions:

 

2.

	  	
Transfer Funds to (Receiving Party Account Name):

 

	  	
Receiving Party Account Number:

 

	  	
Receiving Bank Name, City and State:

	
Receiving Bank Routing (ABA) Number

 

	  	
Maximum Transfer Amount:

 

	  	
Further Credit Information/Instructions:

 

3.

	  	
Transfer Funds to (Receiving Party Account Name):

 

	  	
Receiving Party Account Number:

 

	  	
Receiving Bank Name, City and State:

	
Receiving Bank Routing (ABA) Number

 

	  	
Maximum Transfer Amount:

 

	  	
Further Credit Information/Instructions:

 

  

L-2

  

Loan No.:  1005052

	
Date: ___________, 20__

	 
	  	 
	
“BORROWER REPRESENTATIVE”

	 
	  	 
	
LEXINGTON REALTY TRUST

	 
	  	 
	 	By: 	 	 
	  	  	
Name: 

	  	 
	  	  	
Title:

	  	 

[Signature Page to Transfer Authorizer Designation]

  

L-3

  

EXHIBIT M

FORM OF PLEDGE AGREEMENT

THIS PLEDGE AGREEMENT dated as of ____________ __, 2012, executed and delivered by each of the undersigned parties identified as “Pledgors” on the signature pages hereto and the other Persons who may become Pledgors hereunder pursuant to the execution and delivery of a Pledge Agreement Supplement substantially in the form of Annex 1 hereto (each a “Pledgor” and collectively, the “Pledgors”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the Lenders under that certain Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the other parties thereto, for its benefit and the benefit of the Lenders (the Administrative Agent and the Lenders, each individually a “Secured Party” and collectively, the “Secured Parties”).

WHEREAS, pursuant to the Term Loan Agreement, the Lenders have agreed to make available to the Borrowers certain financial accommodations on terms and conditions set forth in the Term Loan Agreement;

WHEREAS, the Borrowers and each of the other Pledgors, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Lenders through their collective efforts;

WHEREAS, each Pledgor acknowledges that it will receive direct and indirect benefits from the Lenders making such financial accommodations available to the Borrowers under the Term Loan Agreement; and

WHEREAS, it is a condition precedent to the effectiveness of the Term Loan Agreement and to the Administrative Agent’s and the other Secured Parties’ making such financial accommodations available to the Borrowers under the Term Loan Agreement that the Pledgors execute and deliver this Agreement, among other things, to grant to the Administrative Agent for the benefit of the Secured Parties a security interest in the Collateral as security for the Secured Obligations.

NOW, THEREFORE, in consideration of the mutual agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

  

M-1

  

            Section 1.  Pledge.  As security for the prompt performance and payment in full of the Secured Obligations, each Pledgor hereby pledges, hypothecates, assigns, transfers, sets over and delivers unto the Administrative Agent, for its own benefit and for the benefit of the other Secured Parties, and grants to the Administrative Agent, for its own benefit and for the benefit of the other Secured Parties, a security interest in, all of such Pledgor’s right, title and interest in, to and under the following (collectively, the “Pledged Collateral”):

(a)           the Pledged Interests;

(b)           all distributions, cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof to which such Pledgor shall at any time be entitled in respect of the Pledged Interests;

(c)           all other payments due or to become due to such Pledgor in respect of any of the foregoing;

(d)          all of such Pledgor’s claims, rights, powers, privileges, authority, puts, calls, options, security interests, liens and remedies, if any, in respect of any of the foregoing;

(e)           all of such Pledgor’s rights to exercise and enforce any and every right, power, remedy, authority, option and privilege of such Pledgor relating to any of the foregoing including, without limitation, any power to (i)  terminate, cancel or modify any agreement, (ii) execute any instruments and to take any and all other action on behalf of and in the name of such Pledgor in respect of any of the foregoing and the applicable Issuer thereof, (iii) exercise voting rights or make determinations, (iv) exercise any election (including, but not limited to, election of remedies), (v) exercise any “put”, right of first offer or first refusal, or other option, (vi) exercise any right of redemption or repurchase, (vii) give or receive any notice, consent, amendment, waiver or approval, (viii) demand, receive, enforce, collect or receipt for any of the foregoing, (ix) enforce or execute any checks, or other instruments or orders, (x) file any claims and to take any action in connection with any of the foregoing, or (xi) otherwise act as if such Pledgor were the absolute owner of such Pledged Interests and all rights associated therewith;

(f)           all certificates and instruments representing or evidencing any of the foregoing;

(g)          all other property hereafter delivered in substitution for or in addition to any of the foregoing;

(h)          all other rights, titles, interests, powers, privileges and preferences pertaining to any of the foregoing; and

(i)            all Proceeds of any of the foregoing.

  

M-2

  

Section 2.  Representations and Warranties.  Each Pledgor hereby represents and warrants to the Administrative Agent and the other Secured Parties as follows:

(a)           Title and Liens.  Such Pledgor is, and will at all times continue to be, the legal and beneficial owner of the Pledged Collateral of such Pledgor. None of the Pledged Collateral is subject to any adverse claim or other Lien (other than Permitted Liens of the types described in any of clauses (a), (e) and (f) of the definition of the term “Permitted Liens” in the Term Loan Agreement).  No Person has control of any of the Pledged Collateral other than the Administrative Agent.

(b)           Authorization.  Such Pledgor has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform this Agreement in accordance with its terms.  The execution, delivery and performance of this Agreement in accordance with its terms, including the granting of the security interest hereunder, do not and will not, by the passage of time, the giving of notice, or both: (i) require any governmental approval or violate any Applicable Law relating to such Pledgor; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of such Pledgor, or any indenture, agreement or other instrument to which such Pledgor is a party or by which it or any of the Pledged Collateral of such Pledgor or its other property may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any of the Pledged Collateral of such Pledgor or such Pledgor’s other property whether now owned or hereafter acquired.

(c)           Validity and Perfection of Security Interest.  This Agreement is effective to create in favor of the Administrative Agent, for the benefit of the other Secured Parties, a legal, valid and enforceable security interest in the Pledged Collateral.  Such security interest will be perfected (i) with respect to any such Pledged Collateral that is a “security” (as such term is defined in the UCC) and is evidenced by a certificate, when such Pledged Collateral is delivered to the Administrative Agent or any Person acting as bailee for the Administrative Agent for purposes of perfecting the security interests in such Pledged Collateral with duly executed stock powers with respect thereto, (ii) with respect to any such Pledged Collateral that is a “security” (as such term is defined in the UCC) but is not evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the Pledgors or when control is established by the Administrative Agent over such interests in accordance with the provision of Section 8-106 of the UCC, or any successor provision, and (iii) with respect to any such Pledged Collateral that is not a “security” (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the Pledgors.  Except as set forth in this subsection, no action is necessary to perfect the security interest granted by any Pledgor under this Agreement.

(d)           Pledged Equity Interests.  The information set forth on Schedule 1 attached hereto and incorporated herein by reference with respect to the Pledged Collateral of such Pledgor is true and correct.

  

M-3

  

(e)           Name, Organization, Etc.  Such Pledgor’s exact legal name, type of legal entity, jurisdiction of formation, organizational identification number and location of its chief executive office are as set forth on Schedule 1 attached hereto.  Except as set forth on such Schedule, since the date of such Pledgor’s formation, such Pledgor has not changed its name or merged with or otherwise combined its business with any other Person.

(f)            Validly Issued, etc.  All of the Pledged Interests are duly authorized, validly issued, fully paid and nonassessable and are not subject to preemptive rights of any Person.

(g)           Interests in Partnerships and LLCs.  None of the Pledged Collateral consisting of an interest in a partnership or in a limited liability company (i) is dealt in or traded on a securities exchange or in securities markets, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) otherwise constitutes a security or (v) constitutes a financial asset.

(h)           No Judgments; No Litigation.  There are no judgments presently outstanding and unsatisfied against any Pledgor or any of its assets that would constitute an Event of Default under the Term Loan Agreement, and there are no actions, suits, investigations or proceedings pending (nor to the knowledge of any Pledgor, are there any actions, suits or proceedings threatened) against or in any other way relating adversely to or affecting any Pledgor or any of their respective property in any court or before any arbitrator of any kind or before or by any other Governmental Authority which could reasonably be expected to have a Material Adverse Effect.

(i)            No Restrictions on Transfer.  There are no restrictions on the transfer of the Pledged Interests to the Administrative Agent and/or the other Secured Parties hereunder, or with respect to any subsequent transfer thereof or realization thereupon by the Administrative Agent and/or the other Secured Parties (or, if there are any such restrictions, such transfer restrictions have been duly waived by all required parties), and, as set forth in the Acknowledgement and Consents in the form of Schedule 2 attached hereto and delivered by any Issuer, each of the Pledgors has obtained all consents needed in connection with any such transfer or subsequent transfer, if any, subject to matters resulting from operation of law.

Section 3.  Covenants.  Each Pledgor hereby unconditionally covenants and agrees as follows:

(a)           No Liens; No Sale of Pledged Collateral.  Such Pledgor will not create, assume, incur or permit or suffer to exist or to be created, assumed or incurred, any Lien (other than Permitted Liens of the types described in any of clauses (a), (e) and (f) of the definition of the term “Permitted Liens” in the Term Loan Agreement) on any of the Pledged Collateral (or any interest therein) or sell, lease, assign, transfer or otherwise dispose of all or any portion of the Pledged Collateral (or any interest therein) except as expressly permitted under Section 9.7. of the Term Loan Agreement.

  

M-4

  

(b)           Change of Name, Etc.  Without giving the Administrative Agent at least 30-days’ prior written notice and to the extent such action is not otherwise prohibited by any of the Loan Documents, such Pledgor shall not: (i) change its name; (ii) reorganize or otherwise become formed under the laws of another jurisdiction or (iii) become bound by a security agreement of another Person under Section 9-203(d) of the UCC.

(c)           Defense of Title.  Such Pledgor will warrant and defend its title to and ownership of the Pledged Collateral of such Pledgor, at its sole cost and expense, against the claims of all Persons.

(d)           Delivery of Certificates, Etc.  If a Pledgor shall receive any certificate (including, without limitation, any certificate representing a stock and/or liquidating dividends, other distributions in property, return of capital or other distributions made on or in respect of the Pledged Collateral, whether resulting from a subdivision, combination or reclassification of outstanding Equity Interests or received in exchange for Pledged Collateral or any part thereof or as a result of any merger, consolidation, acquisition or other exchange of assets or on the liquidation, whether voluntary or involuntary, or otherwise), instrument, option or rights in respect of any Pledged Collateral, whether in addition to, in substitution of, as a conversion of, or in exchange for, any Pledged Collateral, or otherwise in respect thereof, such Pledgor shall hold the same in trust for the Administrative Agent and the other Secured Parties and promptly deliver the same to the Administrative Agent in the exact form received, duly indorsed by such Pledgor to the Administrative Agent, if required, together with an undated stock power covering such certificate (or other appropriate instrument of transfer) duly executed in blank by such Pledgor and with, if the Administrative Agent so requests, signature guaranteed, to be held by the Administrative Agent, subject to the terms of this Agreement, as Pledged Collateral.

(e)           Uncertificated Securities.  With respect to any Pledged Collateral that constitutes a security and is not represented or evidenced by a certificate or instrument, such Pledgor shall cause the Issuer thereof either (i) to register the Administrative Agent as the registered owner of such security or (ii) to agree in writing with the Administrative Agent and such Pledgor that such Issuer will comply with the instructions with respect to such security originated by the Administrative Agent without further consent of such Pledgor.

(f)           Additional Shares.  Such Pledgor shall not permit any Issuer to issue any additional Equity Interests unless such Equity Interests are pledged hereunder as provided herein.  Further, such Pledgor shall not permit any Issuer to amend or modify its articles or certificate of incorporation, articles of organization, certificate of limited partnership, by-laws, operating agreement, partnership agreement or other comparable organizational instrument in a manner which would adversely affect the voting, liquidation, preference or other similar rights of any holder of the Equity Interests pledged hereunder.

(g)           Issuer Acknowledgment.  Such Pledgor shall, upon the Administrative Agent’s request therefor, cause each Issuer of Pledged Collateral and which Issuer is not a Pledgor itself, to execute and deliver to the Administrative Agent an Acknowledgment and Consent substantially in the form of Schedule 2 attached hereto.

 

  

M-5

  

(h)           Investment Property.  Such Pledgor shall not, and shall not allow any issuer of any Pledged Collateral, to the extent such issuer is a limited liability company or a partnership to, elect that the Pledged Interests, except as directed or requested by the Administrative Agent, be securities governed by Article 8 of the Uniform Commercial Code.

Section 4.  Registration in Nominee Name, Denominations.  The Administrative Agent shall have the right (in its sole and exclusive discretion) to hold any Equity Interests which are part of the pledged Collateral in its own name as pledgee, the name of its nominee (as Administrative Agent or as sub-agent) or the name of the Pledgor thereof, endorsed or assigned in blank or in favor of the Administrative Agent.  Such Pledgor will promptly give to the Administrative Agent copies of any notices or other communications received by it with respect to any such Equity Interests constituting Pledged Collateral registered in the name of such Pledgor.

Section 5.  Voting Rights; Dividends, etc.

(a)           So long as no Event of Default exists:

(i)           each Pledgor shall be entitled to exercise any and all voting and/or consensual rights and powers accruing to an owner of the Pledged Collateral or any part thereof for any purpose not inconsistent with the terms and conditions of any of the Loan Documents or any agreement giving rise to or otherwise relating to any of the Secured Obligations; provided, however, that no Pledgor shall exercise, or refrain from exercising, any such right or power if any such action would have a material adverse effect on the value of such Pledged Collateral in the reasonable judgment of the Administrative Agent; and

(ii)           each Pledgor shall be entitled to retain and use any and all cash distributions paid on the Pledged Collateral, but any and all equity and/or liquidating distributions, other distributions in property, return of capital or other distributions made on or in respect of Pledged Collateral, whether resulting from a subdivision, combination or reclassification of outstanding Equity Interests which are pledged hereunder or received in exchange for Pledged Collateral or any part thereof or as a result of any merger, consolidation, acquisition or other exchange of assets or on the liquidation, whether voluntary or involuntary, of any Issuer, or otherwise, shall be and become part of the Pledged Collateral pledged hereunder and, if received by such Pledgor, shall forthwith be delivered to the Administrative Agent to be held as collateral subject to the terms and conditions of this Agreement.

The Administrative Agent agrees to execute and deliver to each Pledgor, or cause to be executed and delivered to such Pledgor, as appropriate, at the sole cost and expense of such Pledgor, all such proxies, powers of attorney, dividend orders and other instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the voting and/or consensual rights and powers which such Pledgor is entitled to exercise pursuant to clause (i) above and/or to receive the distributions and other amounts which such Pledgor is authorized to retain pursuant to clause (ii) above.

  

M-6

  

(b)           If an Event of Default exists, all rights of the Pledgors to exercise the voting and/or consensual rights and powers which the Pledgors are entitled to exercise pursuant to subsection (a)(i) above and/or to receive the distributions and other amounts which the Pledgors are authorized to receive and retain pursuant to subsection (a)(ii) above shall cease, and all such rights thereupon shall become immediately vested in the Administrative Agent, which shall have the sole and exclusive right and authority to exercise such voting and/or consensual rights and powers which the Pledgors shall otherwise be entitled to exercise pursuant to subsection (a)(i) above and/or to receive and retain the distributions and other amounts which the Pledgors shall otherwise be authorized to retain pursuant to subsection (a)(ii) above.  Any and all money and other property paid over to or received by the Administrative Agent pursuant to the provisions of this subsection (b) shall be retained by the Administrative Agent as additional collateral hereunder and shall be applied in accordance with the provisions of Section 8 of this Agreement.  If any Pledgor shall receive any distributions or other property which it is not entitled to receive under this Section, such Pledgor shall hold the same in trust for the Administrative Agent and the other Secured Parties, without commingling the same with other funds or property of or held by such Pledgor, and shall promptly deliver the same to the Administrative Agent in the identical form received, together with any necessary endorsements.

Section 6.  Event of Default Defined.  For purposes of this Agreement, “Event of Default” shall mean any of the following events, whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment or order of any court or any order, rule or regulation of any governmental or nongovernmental body: (i) the failure of any Pledgor to comply with any of the terms and provisions of this Agreement; (ii) the occurrence of an “Event of Default” as such term is defined in the Term Loan Agreement; or (iii) any action is taken by the Issuer of any Pledged Interests or the partners, shareholders, managers, members or trustees thereof to amend or modify the Organizational Documents in a manner that would (A) materially adversely affect the voting, liquidation, preference, redemption or other similar rights of any holder of the Pledged Interests or, (B)  adversely affect the Administrative Agent’s or the other Secured Parties’ rights or remedies under this Agreement.

  

M-7

  

Section 7.  Remedies upon Default.

(a)           In addition to any right or remedy that the Administrative Agent or any of the other Secured Parties may have under the Term Loan Agreement, any other Loan Document or any Specified Derivatives Contract or otherwise under Applicable Law, if an Event of Default shall exist, the Administrative Agent may exercise any and all the rights and remedies of a secured party under the Uniform Commercial Code as in effect in any applicable jurisdiction and may otherwise sell, assign, transfer, endorse and deliver the whole or, from time to time, any part of the Pledged Collateral at one or more public or private sales or on any securities exchange, for cash, upon credit or for other property, for immediate or future delivery, and for such price or prices and on such terms as the Administrative Agent in its discretion shall deem appropriate.  The Administrative Agent shall be authorized at any sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to Persons who will represent and agree that they are purchasing the Pledged Collateral for their own account in compliance with the Securities Act and upon consummation of any such sale the Administrative Agent shall have the right to assign, transfer, endorse and deliver to the purchaser or purchasers thereof the Pledged Collateral so sold.  Each purchaser at any sale of Pledged Collateral shall take and hold the property sold absolutely free from any claim or right on the part of any Pledgor, and each Pledgor hereby waives (to the fullest extent permitted by Applicable Law) all rights of redemption, stay and/or appraisal which such Pledgor now has or may at any time in the future have under any Applicable Law now existing or hereafter enacted.  Each Pledgor agrees that, to the extent notice of sale shall be required by Applicable Law, at least ten (10) days’ prior written notice to such Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification, but notice given in any other reasonable manner or at any other reasonable time shall also constitute reasonable notification.  Such notice, in case of public sale, shall state the time and place for such sale, and, in the case of sale on a securities exchange, shall state the exchange on which such sale is to be made and the day on which the Pledged Collateral, or portion thereof, will first be offered for sale at such exchange.  Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Administrative Agent may fix and shall state in the notice or publication (if any) of such sale.  At any such sale, the Pledged Collateral, or portion thereof to be sold, may be sold in one lot as an entirety or in separate parcels, as the Administrative Agent may determine in its sole and exclusive discretion.  Neither the Administrative Agent nor any of the other Secured Parties shall be obligated to make any sale of the Pledged Collateral if it shall determine not to do so regardless of the fact that notice of sale of the Pledged Collateral may have been given.  The Administrative Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned.  In case the sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Administrative Agent until the sale price is paid by the purchaser or purchasers thereof, but neither the Administrative Agent nor any of the other Secured Parties shall incur any liability to any Pledgor in case any such purchaser or purchasers shall fail to take up and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  At any public sale made pursuant to this Agreement, the Administrative Agent or any of the other Secured Parties and any other holder of any of the Secured Obligations, to the extent permitted by Applicable Law, may bid for or purchase, free from any right of redemption, stay and/or appraisal on the part of any Pledgor (all said rights being also hereby waived and released to the extent permitted by Applicable Law), any part of or all the Pledged Collateral offered for sale and may make payment on account thereof by using any claim then due and payable to the Administrative Agent or any of the other Secured Parties from any Pledgor as a credit against the purchase price, and the Administrative Agent and the Lenders may, upon compliance with the terms of sale and to the extent permitted by Applicable Law, hold, retain and dispose of such property without further accountability to any Pledgor therefor.  For purposes hereof, a written agreement to purchase all or any part of the Pledged Collateral shall be treated as a sale thereof; the Administrative Agent shall be free to carry out such sale pursuant to such agreement and no Pledgor shall be entitled to the return of any Pledged Collateral subject thereto, notwithstanding the fact that after the Administrative Agent shall have entered into such an agreement all Events of Default may have been remedied or the Secured Obligations may have been paid in full as herein provided.  Each Pledgor hereby waives any right to require any marshaling of assets and any similar right.

  

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(b)           In addition to exercising the power of sale herein conferred upon it, the Administrative Agent shall also have the option to proceed by suit or suits at law or in equity to foreclose this Agreement and sell the Pledged Collateral or any portion thereof pursuant to judgment or decree of a court or courts having competent jurisdiction.

(c)           The rights and remedies of the Administrative Agent and the other Secured Parties under this Agreement are cumulative and not exclusive of any rights or remedies which they would otherwise have.

Section 8.  Application of Proceeds of Sale and Cash.  The proceeds of any sale of the whole or any part of the Pledged Collateral, together with any other moneys held by the Administrative Agent or any of the other Secured Parties under the provisions of this Agreement, shall be applied in accordance with Section 10.4. of the Term Loan Agreement.  The Pledgors shall remain liable and will pay, on demand, any deficiency remaining in respect of the Secured Obligations.

Section 9.  Administrative Agent Appointed Attorney-in-Fact.  Each Pledgor hereby constitutes and appoints the Administrative Agent as the attorney-in-fact of such Pledgor with full power of substitution either in the Administrative Agent’s name or in the name of such Pledgor to do any of the following: (a) to perform any obligation of such Pledgor hereunder in such Pledgor’s name or otherwise; (b) to ask for, demand, sue for, collect, receive, receipt and give acquittance for any and all moneys due or to become due under and by virtue of any Pledged Collateral; (c) to prepare, execute, file, record or deliver notices, assignments, financing statements, continuation statements, applications for registration or like papers to perfect, preserve or release the Administrative Agent’s security interest in the Pledged Collateral or any of the documents, instruments, certificates and agreements described in Section 12.(b) of this Agreement; (d) to verify facts concerning the Pledged Collateral in its own name or a fictitious name; (e) to endorse checks, drafts, orders and other instruments for the payment of money payable to such Pledgor, representing any interest or dividend or other distribution payable in respect of the Pledged Collateral or any part thereof or on account thereof and to give full discharge for the same; (f) to exercise all rights, powers and remedies which such Pledgor would have, but for this Agreement, under the Pledged Collateral; and (g) to carry out the provisions of this Agreement and to take any action and execute any instrument which the Administrative Agent may deem necessary or advisable to accomplish the purposes hereof, and to do all acts and things and execute all documents in the name of the Pledgor or otherwise, deemed by the Administrative Agent as necessary, proper and convenient in connection with the preservation, perfection or enforcement of its rights hereunder.  Nothing herein contained shall be construed as requiring or obligating the Administrative Agent or the other Secured Parties to make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by it, or to present or file any claim or notice, or to take any action with respect to the Pledged Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered thereby, and no action taken by the Administrative Agent or of the other Secured Parties or omitted to be taken with respect to the Pledged Collateral or any part thereof shall give rise to any defense, counterclaim or offset in favor of any Pledgor or to any claim or action against the Administrative Agent or any of the other Secured Parties.  The power of attorney granted herein is irrevocable and coupled with an interest.

  

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Section 10.  Administrative Agent’s Duty of Care.  Other than the exercise of reasonable care to ensure the safe custody of the Pledged Collateral while being held by the Administrative Agent hereunder, the Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that each Pledgor shall be responsible for preservation of all rights of such Pledgor in the Pledged Collateral.  The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if such Pledged Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property, it being understood that the Administrative Agent shall not have responsibility for (a) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Pledged Collateral, whether or not the Administrative Agent has or is deemed to have knowledge of such matters or (b) taking any necessary steps to preserve rights against any parties with respect to any Pledged Collateral.

Section 11.  Reimbursement of Administrative Agent.  Each Pledgor agrees to pay upon demand to the Administrative Agent the amount of any and all reasonable expenses, including the reasonable fees disbursements and other charges of its counsel and of any experts or agents, and its fully allocated internal costs, that the Administrative Agent may incur in connection with (a) the administration of this Agreement, (b) the custody or preservation of, or any sale of, collection from, or other realization upon, any of the Pledged Collateral, (c) the exercise or enforcement of any of the rights of the Administrative Agent or the other Secured Parties hereunder, or (d) the failure by such Pledgor to perform or observe any of the provisions hereof.  Any such amounts payable as provided hereunder shall be Secured Obligations.

  

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Section 12.  Further Assurances.  Each Pledgor shall, at its sole cost and expense, take all action that may be necessary or desirable in the Administrative Agent’s reasonable discretion, so as at all times to maintain the validity, perfection, enforceability and priority of the Administrative Agent’s security interest in the Pledged Collateral, or to enable the Administrative Agent or the other Secured Parties to exercise or enforce their respective rights hereunder, including, without limitation (a) delivering to the Administrative Agent, endorsed or accompanied by such instruments of assignment as the Administrative Agent may specify, any and all chattel paper, instruments, letters of credit and all other advices of guaranty and documents evidencing or forming a part of the Pledged Collateral and (b) executing and delivering pledges, designations, notices and assignments, in each case in form and substance satisfactory to the Administrative Agent, relating to the creation, validity, perfection, priority or continuation of the security interest granted hereunder.  Each Pledgor agrees to take, and authorizes the Administrative Agent to take on such Pledgor’s behalf, any or all of the following actions with respect to any Pledged Collateral as the Administrative Agent shall deem necessary to perfect the security interest and pledge created hereby or to enable the Administrative Agent to enforce their respective rights and remedies hereunder: (i) to register in the name of the Administrative Agent any Pledged Collateral in certificated or uncertificated form; (ii) to endorse in the name of the Administrative Agent any Pledged Collateral issued in certificated form; and (iii) by book entry or otherwise, identify as belonging to the Administrative Agent a quantity of securities or partnership interests that constitutes all or part of the Pledged Collateral registered in the name of the Administrative Agent.  Notwithstanding the foregoing, each Pledgor agrees that Pledged Collateral which is not in certificated form or is otherwise in book-entry form shall be held for the account of the Administrative Agent.  Each Pledgor hereby authorizes the Administrative Agent to file in all necessary and appropriate jurisdictions (as determined by the Administrative Agent) one or more financing or continuation statements (or any other document or instrument referred to in the immediately preceding clause (b)) in the name of such Pledgor.  To the extent permitted by Applicable Law, a carbon, photographic, xerographic or other reproduction of this Agreement or any financing statement is sufficient as a financing statement.  Any property comprising part of the Pledged Collateral required to be delivered to the Administrative Agent pursuant to this Agreement shall be accompanied by proper instruments of assignment duly executed by the Pledgors and by such other instruments or documents as the Administrative Agent may reasonably request.

Section 13.  Securities Act.  In view of the position of any Pledgor in relation to the Pledged Collateral, or because of other current or future circumstances, a question may arise under the Securities Act or any similar Applicable Law hereafter enacted analogous in purpose or effect (such Act and any such similar Applicable Law as from time to time in effect being called the “Federal Securities Laws”) with respect to any disposition of the Pledged Collateral permitted hereunder.  Each Pledgor understands that compliance with the Federal Securities Laws might very strictly limit the course of conduct of the Administrative Agent if the Administrative Agent were to attempt to dispose of all or any part of the Pledged Collateral in accordance with the terms hereof, and might also limit the extent to which or the manner in which any subsequent transferee of any Pledged Collateral could dispose of the same.  Similarly, there may be other legal restrictions or limitations affecting the Administrative Agent in any attempt to dispose of all or part of the Pledged Collateral in accordance with the terms hereof under applicable Blue Sky or other state securities laws or similar Applicable Law analogous in purpose or effect.  Each Pledgor recognizes that in light of the foregoing restrictions and limitations the Administrative Agent may, with respect to any sale of the Pledged Collateral, limit the purchasers to those who will agree, among other things, to acquire such Pledged Collateral for their own account, for investment, and not with a view to the distribution or resale thereof.  Each Pledgor acknowledges and agrees that in light of the foregoing restrictions and limitations, the Administrative Agent, in its sole and exclusive discretion, may, in accordance with Applicable Law, (a) proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Collateral or part thereof shall have been filed under the Federal Securities Laws and (b) approach and negotiate with a single potential purchaser to effect such sale.  Each Pledgor acknowledges and agrees that any such sale might result in prices and other terms less favorable to the seller than if such sale were a public sale without such restrictions.  In the event of any such sale, neither the Administrative Agent nor any of the other Secured Parties shall incur any responsibility or liability for selling all or any part of the Pledged Collateral in accordance with the terms hereof at a price that the Administrative Agent, in its sole and exclusive discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached.  The provisions of this Section will apply notwithstanding the existence of public or private market upon which the quotations or sales prices may exceed substantially the price at which the Administrative Agent sell.

  

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Section 14.  Intentionally Omitted.

Section 15.  Security Interest Absolute.  All rights of the Administrative Agent hereunder, the grant of a security interest in the Pledged Collateral and all obligations of the Pledgor hereunder, shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of any Loan Document, any agreement with respect to any of the Secured Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of the payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from any of the documents, instruments or agreements evidencing any of the Secured Obligations, (c) any exchange, release or nonperfection of any other collateral, or any release or amendment or waiver of or consent to or departure from any guaranty, for all or any of the Secured Obligations or (d) any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Pledgor in respect of the Secured Obligations or in respect of this Agreement (other than the indefeasible payment in full of all the Secured Obligations).

Section 16.  Continuing Security Interest.  This Agreement constitutes an authenticated record, shall create a continuing security interest in the Pledged Collateral and shall remain in full force and effect until it terminates in accordance with its terms.  The Pledgors and the Administrative Agent hereby agree that the security interest created by this Agreement in the Pledged Collateral shall not terminate and shall continue and remain in full force and effect notwithstanding the transfer by the Pledgors or any person designated by it of all or any portion of the Pledged Collateral.

Section 17.  No Waiver.  Neither the failure on the part of the Administrative Agent or any of the other Secured Parties to exercise, nor the delay on its part in exercising any right, power or remedy hereunder, nor any course of dealing between the Administrative Agent or any of the other Secured Parties and any Pledgor shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy hereunder preclude any other or the further exercise thereof or the exercise of any other right, power or remedy.

  

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Section 18.  Notices.  All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing) and shall be given (a) to a Pledgor at its address set forth below its signature hereto, (b) to the Administrative Agent at its address for notices provided in the Term Loan Agreement, or (c) as to each such party at such other address as such party shall designate in a written notice to the other parties.  All such notices and other communications shall be effective: (i) if mailed, when received; (ii) if telecopied, when transmitted; (iii) if hand delivered or sent by overnight courier, when delivered; or (iv) if delivered in accordance with Section 12.14. of the Term Loan Agreement to the extent applicable; provided, however, that, in the case of the immediately preceding clauses (i), (ii) and (iii), non-receipt of any communication as the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such communication.

SECTION 19.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

SECTION 20.  WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION; VENUE.

(a)           EACH PLEDGOR, AND EACH OF THE ADMINISTRATIVE AGENT AND THE OTHER SECURED PARTIES BY ACCEPTING THE BENEFITS HEREOF, ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN SUCH PLEDGOR, THE ADMINISTRATIVE AGENT OR ANY OF THE OTHER SECURED PARTIES WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PLEDGORS, AND THE ADMINISTRATIVE AGENT AND THE OTHER SECURED PARTIES BY ACCEPTING THE BENEFITS HEREOF HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS AGREEMENT.

(b)           EACH PLEDGOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY OTHER SECURED PARTY, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY OTHER SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY PLEDGOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM, AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE ADMINISTRATIVE AGENT OR ANY OTHER SECURED PARTY OR THE ENFORCEMENT BY THE ADMINISTRATIVE AGENT OR ANY OTHER SECURED PARTY OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

  

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(c)           THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL OF THEIR OWN SELECTION AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS AGREEMENT.

Section 21.  Amendments.  No amendment or waiver of any provision of this Agreement nor consent to any departure by any Pledgor herefrom shall in any event be effective unless the same shall be in writing and signed by the parties hereto, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

Section 22.  Binding Agreement; Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, except that no Pledgor shall be permitted to assign this Agreement or any interest herein or in the Pledged Collateral, or any part thereof, or any cash or property held by the Administrative Agent or any of the other Secured Parties as collateral under this Agreement, and any such assignment by a Pledgor shall be null and void absent the prior written consent of the Administrative Agent, which consent may be withheld, conditioned or delayed in the Administrative Agent’s sole and exclusive discretion.

Section 23.  Termination.  Upon the earlier of (a) the Release Date and (b) indefeasible payment and performance in full of all of the Secured Obligations, this Agreement shall terminate.  Upon termination of this Agreement in accordance with its terms the Administrative Agent agrees to take such actions as the Pledgors may reasonably request, and at the sole cost and expense of the Pledgors, to evidence the termination of this Agreement.

  

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Section 24.  Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under Applicable Law, but if any provision of this Agreement shall be prohibited by or invalid under Applicable Law, such provisions shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Agreement.

Section 25.  Headings.  Section headings used herein are for convenience only and are not to affect the construction of or be taken into consideration in interpreting this Agreement.

Section 26.  Counterparts.  To facilitate execution, this Agreement and any amendments, waivers, consents or supplements may be executed in any number of counterparts as may be convenient or required (which may be effectively delivered by facsimile, in portable document format (“PDF”) or other similar electronic means).  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.

Section 27.  Definitions.

(a)           As used herein, the following terms have the indicated meanings:

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights.

“Event of Default” has the meaning set forth in Section 6 of this Agreement.

“Issuer” means a Person which issued any Equity Interest that constitutes any part of the Pledged Collateral.

“Organizational Documents” means any declaration of trust, operating agreement, partnership agreement, by-laws, articles or certificate of incorporation, articles of organization, certificate of limited partnership, or other similar agreement or document.

“Pledged Interests” means, with respect to each Pledgor, such Pledgor’s right, title and interest in the Equity Interests of the Issuers as described on Schedule 1 attached hereto, including, without limitation, all economic interests and rights to vote or otherwise control such Issuers and all rights as a partner, shareholder, member, or trustee thereof, whether now owned or hereafter acquired.

  

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“Proceeds” means all proceeds (including proceeds of proceeds) of any of the Pledged Collateral including all: (a) rights, benefits, distributions, premiums, profits, dividends, interest, cash, instruments, documents of title, accounts, contract rights, inventory, equipment, general intangibles, payment intangibles, deposit accounts, chattel paper, and other property from time to time received, receivable, or otherwise distributed in respect of or in exchange for, or as a replacement of or a substitution for, any of the Pledged Collateral, or proceeds thereof (including any cash, Equity Interests, or other instruments issued after any recapitalization, readjustment, reclassification, merger or consolidation with respect to the Issuers and any security entitlements, as defined in Section 8-102(a)(17) of the UCC, with respect thereto); (b) “proceeds,” as such term is defined in Section 9-102(a)(64) of the UCC; (c) proceeds of any insurance, indemnity, warranty, or guaranty (including guaranties of delivery) payable from time to time with respect to any of the Pledged Collateral, or proceeds thereof; and (d) payments (in any form whatsoever) made or due and payable to a Pledgor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Pledged Collateral, or proceeds thereof.

“Secured Obligations” means, collectively, (a) with respect to any Borrower, (i) the unpaid principal of and interest on all Loans, (ii) all other indebtedness, liabilities, obligations, covenants and duties of such Borrower owing to the Administrative Agent or any Lender of any kind, nature or description, under or in respect of the Term Loan Agreement or any other Loan Document to which such Borrower is a party, whether direct or indirect, absolute or contingent, due or to become due, contractual or tortious, liquidated or unliquidated, and including all interest (including, to the extent permitted by Applicable Law, interest, Fees and other amounts that would accrue and become due after the filing of a case or other proceeding under the Bankruptcy Code or other similar Applicable Law but for the commencement of such case or proceeding, whether or not such amounts are allowed or allowable in whole or in part in such case or proceeding), (iii) any and all costs, fees (including attorneys’ fees), and expenses which such Borrower is required to pay pursuant to any of the foregoing, under Applicable Law, or otherwise, and (iv) all other Obligations of such Borrower, and (b) with respect to any other Pledgor, (i) all indebtedness, liabilities, obligations, covenants and duties of such Pledgor owing to the Administrative Agent or any Lender of any kind, nature or description, under or in respect of the Guaranty or any other Loan Document to which such Pledgor is a party, whether direct or indirect, absolute or contingent, due or to become due, contractual or tortious, liquidated or unliquidated, and including all interest (including, to the extent permitted by Applicable Law, interest, Fees and other amounts that would accrue and become due after the filing of a case or other proceeding under the Bankruptcy Code or other similar Applicable Law but for the commencement of such case or proceeding, whether or not such amounts are allowed or allowable in whole or in part in such case or proceeding), (ii) any and all costs, fees (including attorneys’ fees), and expenses which such Pledgor is required to pay or has guaranteed pursuant to any of the foregoing, under Applicable Law, or otherwise, and (iii) all other Obligations of such Pledgor.

(b)           Terms not otherwise defined herein are used herein with the respective meanings given to them in the Term Loan Agreement.  Terms which are defined in the UCC have the meanings given such terms therein.

  

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Section 28.  Intercreditor Agreement.  The provisions of this Agreement are in all respects subject to the terms and provisions of that certain Intercreditor Agreement, dated as of the date hereof (the “Intercreditor Agreement”), by and among Wells Fargo Bank, National Association, as the Term Loan Agreement Collateral Agent, KeyBank National Association, as the Credit Agreement Collateral Agent, the Borrowers and the other Grantors party thereto, including the relative rights, obligations and priorities with respect to the Pledged Collateral and proceeds thereof.  In the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement shall govern.

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IN WITNESS WHEREOF, each Pledgor has executed and delivered this Pledge Agreement under seal as of this the date first written above.

	  	
PLEDGORS:

	  	  
	  	
[                           ]

	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

	  	
Address for Notices for all Pledgors:

	  	  
	  	
c/o Lexington Realty Trust

	  	
One Penn Plaza, Suite 4015

	  	
New York, New York  10119

	  	
Attention:

	
Patrick Carroll

	  	
Telecopier:

	
(212) 594-6600

	  	
Telephone:

	
(212) 692-7215

Agreed to, accepted and acknowledged

as of the date first written above,

ADMINISTRATIVE AGENT:

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent

	
By:

	  
	  	
Name:

	  
	  	
Its:

	  
	  	
Its:

	  

  

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ANNEX 1 TO PLEDGE AGREEMENT

FORM OF PLEDGE AGREEMENT SUPPLEMENT

THIS PLEDGE AGREEMENT SUPPLEMENT dated as of _________ __, 20__ (this “Supplement”) executed and delivered by ______________________, a _____________ (the “New Pledgor”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”).

WHEREAS, pursuant to that certain Term Loan Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), by and among Lexington Realty Trust (the “Trust”), LEPERCQ Corporate Income Fund L.P. (“LCIF”), and LEPERCQ Corporate Income Fund II L.P. (“LCIFII”; collectively, with the Trust and LCIF, the “Borrowers” and each a “Borrower”), the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), the Administrative Agent and the other parties thereto, the Lenders and the Administrative Agent have agreed to make available to the Borrowers certain financial accommodations on the terms and conditions set forth in the Term Loan Agreement;

WHEREAS, to secure obligations owing by certain parties under the Term Loan Agreement and the other Loan Documents, the Borrowers and the other “Pledgors” thereunder have executed and delivered that certain Pledge Agreement dated as of January 13, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Pledge Agreement”) in favor of the Administrative Agent;

WHEREAS, it is a condition precedent to the continued extension by the Lenders and the Administrative Agent of such financial accommodations that the New Pledgor execute this Supplement to become a party to the Pledge Agreement.

NOW, THEREFORE, in consideration of the above premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the New Pledgor, the New Pledgor hereby agrees as follows:

Section 1.  Accession to Pledge Agreement; Grant of Security Interest.  The New Pledgor agrees that it is a “Pledgor” under the Pledge Agreement and assumes all obligations of a “Pledgor” thereunder, all as if the New Pledgor had been an original signatory to the Pledge Agreement.  Without limiting the generality of the foregoing, the New Pledgor hereby:

(a)           pledges to the Administrative Agent for the benefit of the Secured Parties, and grants to the Administrative Agent for the benefit of the Secured Parties a security interest in, all of the New Pledgor’s right, title and interest in, to and under the Pledged Collateral, including the Equity Interests described on Schedule 1 attached hereto which shall be appended to Schedule 1 attached to the Pledge Agreement and become a part thereof, as security for the Secured Obligations;

  

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(b)           makes to the Administrative Agent and the other Secured Parties as of the date hereof each of the representations and warranties contained in Section 2 of the Pledge Agreement and agrees to be bound by each of the covenants contained in the Pledge Agreement, including without limitation, those contained in Section 3 thereof; and

(c)           consents and agrees to each other provision set forth in the Pledge Agreement.

SECTION 2.  GOVERNING LAW.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

Section 3.  Definitions.  Capitalized terms used herein and not otherwise defined herein shall have their respective defined meanings given them in the Pledge Agreement.

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IN WITNESS WHEREOF, the New Pledgor has caused this Pledge Agreement Supplement to be duly executed and delivered under seal by its duly authorized officers as of the date first written above.

	  	
[NEW PLEDGOR]

	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

	  	
Address for Notices:

	 	 
	  	
c/o Lexington Realty Trust

	  	
One Penn Plaza, Suite 4015

	  	
New York, New York  10119

	  	
Attention:

	
Patrick Carroll

	  	
Telecopier:

	
(212) 594-6600

	  	
Telephone:

	
(212) 692-7215

Accepted:

WELLS FARGO BANK, NATIONAL 

ASSOCIATION, as Administrative Agent

	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

  

M-21

  

SCHEDULE 1 TO PLEDGE AGREEMENT

Pledged Equity Interests:

	
Pledgor

	  	
Issuer

	  	
Jurisdiction of

Formation of

Issuer

	  	
Class of

Equity

Interest

	  	
Certificate

Number (if

any)

	  	
Percentage of

Ownership

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	
 

Pledgor Information:

	
Pledgor

	  	
Jurisdiction 

of Formation

	  	
Organizational 

ID No.

	  	
Location of Chief Executive 

Office

	  	
  

	  	
  

	  	
  

	  

  

M-22

  

SCHEDULE 2 TO PLEDGE AGREEMENT

Form of Acknowledgement and Consent

The undersigned hereby acknowledges receipt of a copy of the Pledge Agreement dated as of _________ __, 20__ (the “Pledge Agreement”), made by _____________ and the other Pledgors party thereto in favor of Wells Fargo Bank, National Association, as Administrative Agent. Terms not otherwise defined herein have the respective meanings given them in the Pledge Agreement.

The undersigned agrees for the benefit of the Administrative Agent and the other Secured Parties as follows:

(a)           The undersigned will be bound by, and comply with, the terms of the Pledge Agreement applicable to the undersigned, including without limitation, Sections 3(e) and 3(f).

(b)           The undersigned will notify the Administrative Agent in writing promptly of the occurrence of any of the events described in Section 3(d) of the Pledge Agreement.

[(c)           The undersigned will not permit any of the Equity Interests issued by it (i) to be dealt in or traded on a securities exchange or in securities markets; or (ii) to provide by its terms that it is a security governed by Article 8 of the UCC.]1

IN WITNESS WHEREOF, the undersigned has executed and delivered this Acknowledgement and Consent under seal as of this the date first written above.

	  	
[ISSUER]

	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

 

1           Include only if the Issuer is a partnership or limited liability company.

  

M-23Unassociated Document

EXECUTION COPY

	
 

 

INTERCREDITOR AGREEMENT

 

Among

 

LEXINGTON REALTY TRUST,

 

LEPERCQ CORPORATE INCOME FUND L.P.,

 

LEPERCQ CORPORATE INCOME FUND II L.P.,

 

the other GRANTORS party hereto,

 

KEYBANK NATIONAL ASSOCIATION,

as the Authorized Representative for the Credit Agreement Secured Parties,

and

 

WELLS FARGO BANK, NATIONAL ASSOCATION

as the Authorized Representative for the Term Loan Agreement Secured Parties,

Dated as of January 13, 2012

	
 

  

  

  

INTERCREDITOR AGREEMENT, dated as of January 13, 2012 (as amended, supplemented or otherwise modified from time to time, this “Agreement”), among LEXINGTON REALTY TRUST, a real estate investment trust formed under the laws of the State of Maryland (the “Trust”), LEPERCQ CORPORATE INCOME FUND L.P., a limited partnership formed under the laws of the State of Delaware (“LEPERCQ Fund”), and LEPERCQ CORPORATE INCOME FUND II L.P., a limited partnership formed under the laws of the State of Delaware (“LEPERCQ Fund II”; together with the Trust and LEPERCQ Fund, each individually a “Borrower” and collectively, the “Borrowers”), the other GRANTORS (as defined below) party hereto, KEYBANK NATIONAL ASSOCIATION, as the Authorized Representative for the Credit Agreement Secured Parties (in such capacity, the “Credit Agreement Collateral Agent”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Authorized Representative for the Term Loan Agreement Secured Parties (in such capacity, the “Term Loan Agreement Collateral Agent”).

 

In consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Credit Agreement Collateral Agent, for itself and on behalf of its Related Secured Parties and the Term Loan Agreement Collateral Agent, for itself and on behalf of its Related Secured Parties, agree as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.01. Certain Defined Terms. Capitalized terms used but not otherwise defined herein have the meanings set forth in the Credit Agreement or the Term Loan Agreement, as applicable, or, if defined in the New York UCC, the meanings specified therein. As used in this Agreement, the following terms have the meanings specified below:

 

“Agreement” has the meaning assigned to such term in the preamble hereto.

 

“Authorized Representatives” means the Credit Agreement Collateral Agent and the Term Loan Agreement Collateral Agent.

 

“Authorized Representative Joinder Agreement” means a supplement to this Agreement substantially in the form of Exhibit I hereto, appropriately completed.

 

“Bankruptcy Case” has the meaning assigned to such term in Section 2.06.

 

“Bankruptcy Code” means Title 11 of the United States Code, as amended.

 

“Bankruptcy Law” means the Bankruptcy Code and any similar Federal, state or foreign law for the relief of debtors.

 

“Borrower” and “Borrowers” have the meaning assigned to such term in the preamble hereto.

  

  

  

 

“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close.

 

“Class”, when used in reference to (a) any Obligations, refers to whether such Obligations are the Credit Agreement Obligations or the Term Loan Agreement Obligations, (b) any Authorized Representative, refers to whether such Authorized Representative is the Credit Agreement Collateral Agent or the Term Loan Agreement Collateral Agent, (c) any Secured Parties, refers to whether such Secured Parties are the Credit Agreement Secured Parties or the Term Loan Agreement Secured Parties and/or (d) any Credit Documents, refers to whether such Credit Documents are the Credit Agreement Documents or the Term Loan Documents.

 

“Collateral” means all assets of any Borrower or any of the other Grantors now or hereafter subject to a Lien created pursuant to any Security Document to secure any Obligations.

 

“Credit Agreement” means the Amended and Restated Credit Agreement, dated as of January 13, 2012, among the Borrowers, the several banks and other financial institutions or entities from time to time parties thereto and KeyBank National Association, as agent.

 

“Credit Agreement Collateral Agent” has the meaning assigned to such term in the preamble hereto.

 

“Credit Agreement Collateral Agreement” has the meaning assigned to the term “Pledge Agreement” under the Credit Agreement.

 

“Credit Agreement Documents” has the meaning assigned to the term “Loan Documents” under the Credit Agreement.

 

“Credit Agreement Obligations” has the meaning assigned to the term “Secured Obligations” under the Credit Agreement Collateral Agreement.

 

“Credit Agreement Secured Parties” has the meaning assigned to the term “Secured Parties” under the Credit Agreement Collateral Agreement.

 

 “Credit Documents” means, collectively, (a) the Credit Agreement Documents, (b) the Term Loan Debt Documents, and (c) this Agreement.

 

“Default” means a “Default” (or a similar event, however denominated) as defined in any Credit Document.

 

“DIP Financing” has the meaning assigned to such term in Section 2.06.

 

“DIP Financing Liens” has the meaning assigned to such term in Section 2.06.

 

“DIP Lenders” has the meaning assigned to such term in Section 2.06.

 

“Discharge” means, with respect to any Shared Collateral and Obligations of any Class, the date on which Obligations of such Class are no longer secured by Liens on such Shared Collateral. The term “Discharged” shall have a corresponding meaning.

  

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“Event of Default” means an “Event of Default” (or a similar event, however denominated) as defined in any Credit Document.

 

“Excluded Cash Collateral” means any Collateral in the form of one or more Deposit Accounts or Securities Accounts, and all Financial Assets or other funds held in or credited to any such Deposit Account or Securities Account, all Security Entitlements in respect thereof and all Proceeds of any of the foregoing, in each case in which a security interest has been granted by any Borrower or any other Grantor to secure Credit Agreement Obligations consisting of obligations in respect of Letters of Credit pursuant to Section 2.13 of the Credit Agreement (or any equivalent successor provision) or on account of any Defaulting Lender’s obligations in respect of Letters of Credit. For purposes hereof, the terms “Deposit Accounts”, “Securities Accounts”, “Financial Assets”, “Security Entitlements” and “Proceeds” have the meaning assigned thereto in the New York UCC.

 

“Grantor Joinder Agreement” means a supplement to this Agreement substantially in the form of Exhibit II hereto, appropriately completed.

 

“Grantors” means, at any time each Borrower and each Subsidiary that, at such time, has granted a security interest in any of its assets pursuant to any Security Document to secure any Obligations of any Class. The Persons that are Grantors on the date hereof are set forth on Schedule 1 hereto.

 

“Impairment” has the meaning assigned to such term in Section 2.02.

 

“Insolvency or Liquidation Proceeding” means:

 

(a) any case commenced by or against any Borrower or any other Grantor under any Bankruptcy Law, any other proceeding for the reorganization, recapitalization or adjustment or marshaling of the assets or liabilities of any Borrower or any other Grantor, any receivership or assignment for the benefit of creditors relating to any Borrower or any other Grantor or any similar case or proceeding relative to any Borrower or any other Grantor or its creditors, as such, in each case whether or not voluntary;

 

(b) any liquidation, dissolution, marshaling of assets or liabilities or other winding up of or relating to any Borrower or any other Grantor, in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; or

 

(c) any other proceeding of any type or nature in which substantially all claims of creditors of any Borrower or any other Grantor are determined and any payment or distribution is or may be made on account of such claims.

 

“Intervening Creditor” has the meaning assigned to such term in Section 2.02.

 

“Intervening Lien” has the meaning assigned to such term in Section 2.02.

 

“Lien” means, with respect to any asset, any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset.

  

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“Mortgaged Property” means any parcel of real property and improvements thereto that constitute Shared Collateral.

 

“New York UCC” shall mean the Uniform Commercial Code as from time to time in effect in the State of New York.

 

“Obligations” means (a) all the Credit Agreement Obligations and (b) all the Term Loan Agreement Obligations.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority or other entity.

 

“Possessory Collateral” means any Shared Collateral in the possession of the Credit Agreement Collateral Agent (or its agents or bailees) or any successor Credit Agreement Collateral Agent (or its agents or bailees), to the extent that possession thereof perfects a Lien thereon under the Uniform Commercial Code of any jurisdiction. Possessory Collateral includes, without limitation, any “Certificated Securities”, “Promissory Notes” and “Instruments” (as such terms are defined under the New York UCC), in each case, delivered to or in the possession of the Credit Agreement Collateral Agent (or its agents or bailees) under the terms of the applicable Security Documents.

 

“Proceeds” has the meaning assigned to such term in Section 2.01(b).

 

“Refinance” means, in respect of the Obligations of either Class, to refinance, extend, renew, defease, amend, increase, modify, supplement, restructure, refund, replace or repay, or to issue other indebtedness or enter into alternative financing arrangements, in exchange or replacement for such Obligations (in whole or in part), in each case, whether by adding or replacing lenders, creditors, agents, borrowers, guarantors or otherwise and including any of the foregoing effected through any credit agreement, indenture or other agreement or instrument or after the original instrument giving rise to such indebtedness has been terminated but excluding any of the foregoing that constitute mezzanine financing or indebtedness of a Subsidiary that is secured by a mortgage on real property of such Subsidiary and the proceeds of which are not to be used to fund the general corporate requirements of the Trust and its Subsidiaries. “Refinanced” and “Refinancing” have correlative meanings.

 

“Refinancing Debt Documents” means the indentures or other agreements under which Obligations of either Class are issued or incurred in connection with a Refinancing, and all other notes, instruments, agreements and other documents evidencing or governing the Obligations of such Class or providing any guarantee, Lien or other right in respect thereof.

 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates, partners, directors, agents and employees.

 

“Related Secured Parties” means, with respect to the Authorized Representative of either Class, the Secured Parties of such Class.

 

“Responsible Officer” means, with respect to the Borrower Representative, any individual holding the position of chief executive officer or chief financial officer.

  

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“Secured Parties” means (a) the Credit Agreement Secured Parties and (b) the Term Loan Agreement Secured Parties.

 

“Security Documents” means the Credit Agreement Collateral Agreement and the Term Loan Collateral Agreement, and each other agreement entered into for the purpose of securing Obligations of either Class with any Shared Collateral.

 

“Shared Collateral” means, at any time, Collateral on which each of the Credit Agreement Collateral Agent and the Term Loan Agreement Collateral Agent shall have at such time a valid and perfected Lien for the benefit of the Credit Agreement Secured Parties and the Term Loan Agreement Secured Parties, respectively; provided that, for the avoidance of doubt, Excluded Cash Collateral shall not constitute Shared Collateral.

 

“Successor Authorized Representative” has the meaning assigned to that term in Article VI.

 

“Term Loan Agreement” means the Term Loan Agreement, dated as of January 13, 2012, among the Borrowers, the financial institutions party thereto, Wells Fargo Bank, National Association, as the agent, and the other parties thereto.

 

“Term Loan Agreement Collateral Agent” has the meaning assigned to such term in the preamble hereto.

 

“Term Loan Agreement Secured Parties” has the meaning assigned to the term “Secured Parties” under the Term Loan Collateral Agreement.

 

“Term Loan Collateral Agreement” has the meaning assigned to the term “Pledge Agreement” under the Term Loan Agreement.

 

“Term Loan Debt Documents” has the meaning assigned to the term “Loan Documents” under the Term Loan Agreement.

 

“Term Loan Obligations” has the meaning assigned to the term “Secured Obligations” in the Term Loan Collateral Agreement.

 

SECTION 1.02. Terms Generally. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The use herein of the word “include” or “including” shall be deemed to be followed by “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (a) any definition of or reference to any agreement (including this Agreement), instrument, other document, statute or regulation herein shall be construed as referring to such agreement, instrument, other document, statute or regulation as from time to time amended, supplemented or otherwise modified, (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, but shall not be deemed to include the subsidiaries of such Person unless express reference is made to such subsidiaries, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to any Article, Section or Exhibit shall be to an Article, a Section or an Exhibit, as the case may be, hereof unless otherwise specifically provided and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

  

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SECTION 1.03. Concerning the Authorized Representatives. (a) Each acknowledgement, agreement, consent and waiver (whether express or implied) in this Agreement made by the Credit Agreement Collateral Agent, whether on behalf of itself or any other Credit Agreement Secured Party, is made in reliance on the authority granted to the Credit Agreement Collateral Agent and the Agent under (and as defined in) the Credit Agreement. It is understood and agreed that the Credit Agreement Collateral Agent and the Agent under the Credit Agreement shall not be responsible for or have any duty to ascertain or inquire into whether any other Credit Agreement Secured Party is in compliance with the terms of this Agreement, and no party hereto or any other Secured Party shall have any right of action whatsoever against the Credit Agreement Collateral Agent for any failure of any other Credit Agreement Secured Party to comply with the terms hereof or for any other Credit Agreement Secured Party taking any action contrary to the terms hereof.

(b) Each acknowledgement, agreement, consent and waiver (whether express or implied) in this Agreement made by the Term Loan Agreement Collateral Agent, whether on behalf of itself or any other Term Loan Agreement Secured Party, is made in reliance on the authority granted to the Term Loan Agreement Collateral Agent and the Agent under (and as defined in) the Term Loan Agreement. It is understood and agreed that the Term Loan Agreement Collateral Agent and the Agent under (and as defined in) the Term Loan Agreement shall not be responsible for or have any duty to ascertain or inquire into whether any other Term Loan Agreement Secured Party is in compliance with the terms of this Agreement, and no party hereto or any other Secured Party shall have any right of action whatsoever against the Term Loan Agreement Collateral Agent for any failure of any other Term Loan Agreement Secured Party to comply with the terms hereof or for any other Term Loan Agreement Secured Party taking any action contrary to the terms hereof.

 

ARTICLE II

 

Priorities and Agreements with Respect to Shared Collateral

 

SECTION 2.01. Equal Priority. (a) Notwithstanding the date, time, method, manner or order of grant, attachment or perfection of any Lien on any Shared Collateral securing Obligations of either Class, and notwithstanding any provision of the Uniform Commercial Code of any jurisdiction, any other applicable law or any Credit Document, or any other circumstance whatsoever (but, in each case, subject to Section 2.02), each Authorized Representative, for itself and on behalf of its Related Secured Parties, agrees that valid and perfected Liens on any Shared Collateral securing Obligations of either Class shall be of equal priority with valid and perfected Liens on such Shared Collateral securing Obligations of the other Class.

  

- 6 -

  

 

(b) Each Authorized Representative, for itself and on behalf of its Related Secured Parties, agrees that, notwithstanding any provision of any Credit Document to the contrary (but subject to Section 2.02), if (i) an Event of Default shall have occurred and is continuing and an Authorized Representative or any of its Related Secured Parties is taking action to enforce rights or exercise remedies in respect of any Shared Collateral, (ii) any distribution is made in respect of any Shared Collateral in any Insolvency or Liquidation Proceeding or (iii) such Authorized Representative or any of its Related Secured Parties receives any payment in respect of any Shared Collateral pursuant to any intercreditor agreement (other than this Agreement), then the proceeds of any sale, collection or other liquidation of any Shared Collateral obtained by such Authorized Representative or any of its Related Secured Parties, as the case may be, on account of such enforcement of rights or exercise of remedies, and any such distributions or payments received by such Authorized Representative or any of its Related Secured Parties, as the case may be (all such proceeds, distributions and payments being collectively referred to as “Proceeds”), shall be:

 

(1) FIRST, applied to the payment of all amounts owing to such Authorized Representative (in its capacity as such) pursuant to the terms of any Credit Document, including all costs and expenses of such sale, collection or other realization, including expenses, liabilities and advances made or incurred by such Authorized Representative under any Credit Document in connection therewith, and all amounts for which such Authorized Representative (in its capacity as such) is entitled to indemnification under any Credit Document and to the payment of all costs and expenses paid or incurred by such Authorized Representative in connection with the exercise of any right or remedy hereunder or under any other Credit Document;

 

(2) SECOND, allocated, as among Obligations of different Classes, to the payment in full of the Obligations of each Class secured by a valid and perfected Lien on such Shared Collateral (with the amount thereof allocated to the Obligations of any such Class to be determined on a pro rata basis based on the amount of the Obligations of such Class and the Obligations of all such Classes), in each case to be applied to the Obligations of each such Class in the manner set forth in the Credit Documents of such Class (and, pending such application, to be held by the Authorized Representative of such Class solely as collateral for the Obligations of such Class (it being understood and agreed that any amounts so held shall not constitute Shared Collateral for purposes hereof); and

 

(3) THIRD, after payment in full of all the Obligations, allocated to the Borrowers and the other Grantors or their successors or assigns, as their interests may appear, or as a court of competent jurisdiction may direct.

 

(c) It is acknowledged that the Obligations of a Class may, subject to the limitations set forth in the Credit Documents, be increased, extended, renewed, replaced, restated, supplemented, restructured, repaid, refunded, Refinanced or otherwise amended or modified from time to time, all without affecting the priorities set forth in paragraph (a) of this Section or the provisions of this Agreement defining the relative rights of the Secured Parties of the other Class.

  

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(d) Notwithstanding anything in this Agreement or any Security Document to the contrary, Excluded Cash Collateral held by the Agent under (and as defined in) the Credit Agreement or the Credit Agreement Collateral Agent (i) pursuant to Section 2.13 of the Credit Agreement (or any equivalent successor provision) shall be applied as specified in such Section of the Credit Agreement (or such successor provision) or (ii) on account of any Defaulting Lender’s obligations in respect of Letters of Credit shall be applied as provided in any arrangement entered into among the Borrowers and/or such Defaulting Lender in respect of such Excluded Cash Collateral.

 

SECTION 2.02. Impairments. It is the intention of the parties hereto that the Secured Parties of each Class (and not the Secured Parties of the other Class) bear the risk of (a) any determination by a court of competent jurisdiction that (i) any Obligations of such Class are unenforceable under applicable law or are subordinated to any other obligations (other than to any Obligations of the other Class), (ii) any Obligations of such Class do not have a valid and perfected Lien on any of the Collateral securing any Obligations of the other Class or (iii) any Person (other than any Authorized Representative or any Secured Party) has a Lien on any Shared Collateral that is senior in priority to the Lien on such Shared Collateral securing Obligations of such Class, but junior to the Lien on such Shared Collateral securing any Obligations of the other Class (any such Lien being referred to as an “Intervening Lien”, and any such Person being referred to as an “Intervening Creditor”) and (b) the existence of any Collateral securing Obligations of the other Class that does not constitute Shared Collateral with respect to Obligations of such Class (any condition referred to in clause (a) or (b) with respect to Obligations of such Class being referred to as an “Impairment” of such Class); provided that the existence of any limitation on the maximum claim that may be made against any Mortgaged Property that applies to Obligations of both Classes shall not be deemed to be an Impairment of Obligations of either Class.. In the event an Impairment exists with respect to Obligations of a Class, the results of such Impairment shall be borne solely by the Secured Parties of such Class, and the rights of the Secured Parties of such Class (including the right to receive distributions in respect of Obligations of such Class pursuant to Section 2.01(b)) set forth herein shall be modified to the extent necessary so that the results of such Impairment are borne solely by the Secured Parties of such Class. In furtherance of the foregoing, in the event Obligations of a Class shall be subject to an Impairment in the form of an Intervening Lien of any Intervening Creditor, the value of any Shared Collateral or Proceeds that are allocated to such Intervening Creditor shall be deducted solely from the Shared Collateral or Proceeds to be distributed in respect of Obligations of such Class. In addition, in the event the Obligations of a Class are modified pursuant to applicable law (including pursuant to Section 1129 of the Bankruptcy Code or any equivalent provision of, or order granted pursuant to, any other Bankruptcy Law), any reference to the Obligations of such Class or the Documents of such Class shall refer to such obligations or such documents as so modified.

  

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SECTION 2.03. Actions with Respect to Shared Collateral; Prohibition on Certain Contests. (a) Notwithstanding anything to the contrary in the Credit Documents (other than this Agreement), (i) each Authorized Representative (or its agent) shall, and shall have the right to, exercise, or refrain from exercising, any rights, remedies and powers with respect to the Shared Collateral, including any action to enforce its security interest in or realize upon any Shared Collateral and any right, remedy or power with respect to any Shared Collateral under any intercreditor agreement (other than this Agreement), (ii) neither Authorized Representative shall be required to follow any instructions or directions with respect to any Shared Collateral (including with respect to any intercreditor agreement with respect to any Shared Collateral) from the other Authorized Representative (or any other Secured Party), it being understood and agreed that neither Authorized Representative shall be required to take any action that, in its opinion, could expose such Authorized Representative to liability or be contrary to any Credit Document (as modified by this Agreement) or applicable law, and (iii) neither Authorized Representative nor any other Secured Party shall instruct the other Authorized Representative to, commence any judicial or nonjudicial foreclosure proceedings with respect to, seek to have a trustee, receiver, liquidator or similar official appointed for or over, attempt any action to take possession of, take any other action to enforce its security interest in or realize upon, or exercise any other right, remedy or power with respect to (including any right, remedy or power under any intercreditor agreement other than this Agreement) any Shared Collateral, whether under any Credit Document, applicable law or otherwise, it being agreed that each Authorized Representative and in accordance with the applicable Security Documents, shall be entitled to take any actions or exercise any such rights, remedies and powers with respect to Shared Collateral. Neither Authorized Representative nor any of its Related Secured Parties will contest, protest or object to any foreclosure proceeding or action brought by the other Authorized Representative or any of its Related Secured Parties, or any other exercise by the other Authorized Representative or any of its Related Secured Parties of any rights, remedies or powers with respect to the Shared Collateral in accordance with the applicable Security Documents. Nothing in this paragraph shall be construed to limit the rights and priorities of either Authorized Representative or any other Secured Party with respect to any Collateral not constituting Shared Collateral.

 

(b) Each of the Authorized Representatives agrees that it will not accept any Lien on any asset of any Borrower or any Subsidiary securing Obligations of either Class for the benefit of any Secured Party of such Class other than pursuant to the Security Documents, except (i) any Liens on Excluded Cash Collateral created pursuant to Section 2.13 of the Credit Agreement (or any equivalent successor provision) or pursuant to any arrangement entered into among the Borrowers and/or any Defaulting Lender in respect of such Excluded Cash Collateral, (ii) any funds deposited for the discharge or defeasance of Obligations of such Class and (iii) any rights of set-off created under the Credit Documents of such Class or under any applicable law.

 

(c) Each of the Authorized Representatives agrees, for itself and on behalf of its Related Secured Parties, that neither such Authorized Representative nor its Related Secured Parties will (and each hereby waives any right to) challenge or contest, or support any other Person in challenging or contesting, in any proceeding (including any Insolvency or Liquidation Proceeding), (i) the validity, attachment, creation, perfection, priority or enforceability of a Lien held by or on behalf of any other Authorized Representative or any of its Related Secured Parties in all or any part of the Collateral, (ii) the validity, enforceability or effectiveness of any Obligation of either Class or any Security Document of either Class or (iii) the validity, enforceability or effectiveness of the priorities, rights or duties established by, or other provisions of, this Agreement; provided that nothing in this Agreement shall be construed to prevent or impair the rights of either Authorized Representative or any of its Related Secured Parties to enforce this Agreement.

  

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SECTION 2.04. No Interference; Payment Over. (a) Each of the Authorized Representatives, for itself and on behalf of its Related Secured Parties, agrees that (i) neither such Authorized Representative nor its Related Secured Parties will (and each hereby waives any right to) take or cause to be taken any action the purpose of which is, or could reasonably be expected to be, to interfere with, hinder or delay, in any manner, whether by judicial proceedings or otherwise, any sale, transfer or other disposition of any Shared Collateral by the other Authorized Representative, (ii) neither such Authorized Representative nor its Related Secured Parties shall have any right to (A) direct the other Authorized Representative or any other Secured Party to exercise any right, remedy or power with respect to any Shared Collateral (including pursuant to any intercreditor agreement) or (B) consent to the exercise by the other Authorized Representative or any other Secured Party of any right, remedy or power with respect to any Shared Collateral, (iii) neither such Authorized Representative nor its Related Secured Parties will (and each hereby waives any right to) institute any suit or proceeding, or assert in any suit or proceeding any claim, against the other Authorized Representative or any other Secured Party seeking damages from or other relief by way of specific performance, instructions or otherwise with respect to any Shared Collateral, and no Authorized Representative or any other Secured Party shall be liable for any action taken or omitted to be taken by such Authorized Representative or such other Secured Party with respect to any Shared Collateral in accordance with the provisions of this Agreement, and (iv) neither such Authorized Representative nor its Related Secured Parties will (and each hereby waives any right to) seek to have any Shared Collateral or any part thereof marshaled upon any foreclosure or other disposition of such Shared Collateral; provided that nothing in this Agreement shall be construed to prevent or impair the rights of any Authorized Representative or any of its Related Secured Parties to enforce this Agreement.

 

(b) Each Authorized Representative, on behalf of itself and its Related Secured Parties, agrees that if such Authorized Representative or any of its Related Secured Parties shall at any time obtain possession of any Shared Collateral or receive any Proceeds (other than as a result of any application of Proceeds pursuant to Section 2.01(b)) at any time prior to the Discharge of the Obligations of the other Class, (i) such Authorized Representative or its Related Secured Party, as the case may be, shall promptly inform the other Authorized Representative thereof, (ii) such Authorized Representative or its Related Secured Party shall hold such Shared Collateral or Proceeds in trust for the benefit of the Secured Parties of each Class entitled thereto pursuant to Section 2.01(b), (iii) with respect to any such Shared Collateral, if in the possession of an Authorized Representative, such Authorized Representative shall comply with Section 2.10, and if in the possession of any other Secured Party, such Secured Party shall transfer such Shared Collateral to the Credit Agreement Collateral Agent, (iv) such Related Secured Party shall promptly transfer any such Proceeds to its respective Authorized Representative for distribution in accordance with Section 2.01(b) and (v) such Authorized Representative shall promptly transfer any such Proceeds in accordance with Section 2.01(b).

 

SECTION 2.05. Automatic Release of Liens; Amendments to Security Documents. (a) If at any time an Authorized Representative forecloses upon or otherwise exercises rights, remedies and powers against any Shared Collateral resulting in a disposition thereof, then (whether or not any Insolvency or Liquidation Proceeding is pending at the time) the Liens on such Shared Collateral in favor of each Authorized Representative, for the benefit of its Related Secured Parties, will automatically be released and discharged; provided that any Proceeds realized therefrom shall be applied pursuant to Section 2.01(b).

  

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(b) Each Authorized Representative agrees to execute and deliver (at the sole cost and expense of the Grantors) all such consents, confirmations, authorizations and other instruments as shall reasonably be requested by the other Authorized Representative to evidence and confirm any release of Shared Collateral or amendment or modification to any Security Document provided for in this Section.

 

SECTION 2.06. Certain Agreements with Respect to Bankruptcy and Insolvency Proceedings. The Authorized Representative of each Class, for itself and on behalf of its Related Secured Parties, agrees that, if any Borrower or any other Grantor shall become subject to a case or proceeding (a “Bankruptcy Case”) under the Bankruptcy Code or any other Bankruptcy Law and shall, as debtor(s)-in-possession, move for approval of financing (“DIP Financing”) to be provided by one or more lenders (the “DIP Lenders”) under Section 364 of the Bankruptcy Code or any equivalent provision of, or order granted pursuant to, any other Bankruptcy Law, or the use of cash collateral under Section 363 of the Bankruptcy Code or any equivalent provision of any other Bankruptcy Law, each Authorized Representative, for itself and on behalf of its Related Parties, shall have the right to approve or oppose any such financing or to the Liens or court ordered charges, if applicable, on the Shared Collateral securing any such financing (“DIP Financing Liens”) or to any use of cash collateral that constitutes Shared Collateral (and (i) to the extent that such DIP Financing Liens are senior to the Liens on any such Shared Collateral for the benefit of either Class of Secured Parties, each Secured Party of the other Class will subordinate its Liens with respect to such Shared Collateral on the same terms as the Liens of the Secured Parties to which the DIP Financing Liens are senior (other than any Liens of either Class of Secured Parties constituting DIP Financing Liens) are subordinated thereto, and (ii) to the extent that such DIP Financing Liens rank pari passu with the Liens on any such Shared Collateral granted to secure the Obligations of either Class of Secured Parties, each Secured Party of the other Class of Secured Parties will confirm the priorities with respect to such Shared Collateral as set forth herein), in each case so long as (A) the Secured Parties of such Class retain the benefit of their Liens on all such Shared Collateral subject to the DIP Financing Liens, including proceeds thereof arising after the commencement of the Bankruptcy Case, with such Liens having the same priority with respect to Liens of the Secured Parties of any other Class (other than any Liens of the Secured Parties of such other Class constituting DIP Financing Liens) as existed prior to the commencement of the Bankruptcy Case, (B) the Secured Parties of such Class are granted Liens on any additional collateral provided to the Secured Parties of any other Class as adequate protection or otherwise in connection with such DIP Financing or use of cash collateral, with such Liens having the same priority with respect to Liens of the Secured Parties of any other Class (other than any Liens of the Secured Parties of such other Class constituting DIP Financing Liens) as existed prior to the commencement of the Bankruptcy Case and (C) if any amount of such DIP Financing or cash collateral is applied to repay any Obligations, such amount is applied in accordance with Section 2.01(b); provided that the Secured Parties of each Class shall have a right to object to the grant, as security for the DIP Financing, of a Lien on any Collateral subject to Liens in favor of the Secured Parties of such Class or its Authorized Representative that shall not constitute Shared Collateral; and provided, further, that any Secured Party receiving adequate protection granted in connection with the DIP Financing or such use of cash collateral shall not object to any other Secured Party receiving adequate protection comparable to any such adequate protection granted to such Secured Party. Notwithstanding the provisions of Section 2.01 and this Section, (1) if the Secured Parties of a Class are granted adequate protection in the form of periodic payments in connection with such DIP Financing or use of cash collateral, the proceeds of such adequate protection shall be for the account of the Secured Parties of such Class and (2) no Secured Party of a Class shall be prohibited from seeking adequate protection in the form of periodic payments to the extent that any Secured Party of any other Class is receiving such payments or objecting to any DIP Financing or use of cash collateral on the basis that any Secured Party of the other Class is receiving such payments (but the Secured Parties of such Class are not).

  

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SECTION 2.07. Reinstatement. If, in any Insolvency or Liquidation Proceeding or otherwise, all or part of any payment with respect to the Obligations of either Class previously made shall be rescinded for any reason whatsoever (including an order or judgment for disgorgement of a preference under the Bankruptcy Code, or any similar Federal, state or foreign law), then the terms and conditions of Article II shall be fully applicable thereto until all the Obligations of such Class shall again have been paid in full in cash.

 

SECTION 2.08. Insurance and Condemnation Awards. As between the Secured Parties, the Authorized Representatives have the exclusive right, subject to the rights of the Grantors under the Security Documents, to settle and adjust claims in respect of Shared Collateral under policies of insurance covering or constituting Shared Collateral and to approve any award granted in any condemnation or similar proceedings and to approve any award granted in any condemnation or similar proceeding, or any deed in lieu of condemnation, in respect of the Shared Collateral; provided that (i) any Proceeds arising therefrom shall be subject to Section 2.01(b) and (ii) neither Authorized Representative shall settle and adjust any such claims or approve any such award granted without the consent and approval of the other Authorized Representative.

 

SECTION 2.09. Refinancings. The Obligations of either Class may be Refinanced, in whole or in part, in each case, without notice to, or the consent of any Secured Party of the other Class, all without affecting the priorities provided for herein or the other provisions hereof; provided that nothing in this paragraph shall affect any limitation on any such Refinancing that is set forth in the Credit Documents of any such other Class; and provided, further, that, if any obligations of the Grantors in respect of such Refinancing indebtedness shall be secured by Liens on any Shared Collateral, then (a) the Borrowers shall provide written notice of such Refinancing to the other Class of Secured Parties pursuant to Article VI and (b) such obligations and the holders thereof shall be subject to and bound by the provisions of this Agreement and the Successor Authorized Representative of the holders of any such Refinancing indebtedness shall have executed an Authorized Representative Joinder Agreement.

 

SECTION 2.10. Possessory Agent as Gratuitous Bailee for Perfection. (a) The Credit Agreement Collateral Agent agrees to hold any Shared Collateral constituting Possessory Collateral that is part of the Collateral in its possession or control (or in the possession or control of its agents or bailees) as gratuitous bailee for the benefit of each other Secured Party (such bailment being intended, among other things, to satisfy the requirements of Sections 8-301(a)(2) and 9-313(c) of the New York UCC) and any assignee solely for the purpose of perfecting the security interest granted in such Possessory Collateral, if any, pursuant to the applicable Security Documents, in each case subject to the terms and conditions of this Section. Pending delivery to the Credit Agreement Collateral Agent, the Term Loan Agreement Collateral Agent agrees to hold any Shared Collateral constituting Possessory Collateral from time to time in its possession as gratuitous bailee for the benefit of each other Secured Party, solely for the purpose of perfecting the security interest granted in such Possessory Collateral, if any, pursuant to the applicable Security Documents, in each case subject to the terms and conditions of this Section.

  

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(b) Each Authorized Representative shall have no obligation whatsoever to the other Secured Parties to ensure that any Shared Collateral is genuine or owned by any of the Grantors or to preserve rights or benefits of any Person except as expressly set forth in this Section. The duties or responsibilities of each Authorized Representative under this Section shall be limited solely to holding any Shared Collateral constituting Possessory Collateral as gratuitous bailee for the benefit of each other Secured Party for purposes of perfecting the Lien held by such Secured Parties therein.

 

(c) If the Credit Agreement Obligations are Refinanced, upon the Discharge of the Credit Agreement Obligations, the existing Credit Agreement Collateral Agent shall transfer all Shared Collateral constituting Possessory Collateral to the Successor Authorized Representative upon its execution and delivery of an Authorized Representative Joinder Agreement pursuant to which it has agreed to undertake the obligations of the Credit Agreement Collateral Agent under this Agreement. Pending delivery of such Possessory Collateral to the Successor Authorized Representative, the existing Credit Agreement Collateral Agent agrees to continue to hold all such Collateral as gratuitous bailee for the benefit of each Secured Party solely for the purpose of perfecting the security interest granted in such Possessory Collateral pursuant to the applicable Security Documents, notwithstanding the Discharge of the Credit Agreement Obligations.

 

(d) Each Authorized Representative agrees, for itself and its Related Secured Parties, that if the other Authorized Representative is exercising its rights and remedies to enforce its security interest or realize upon any Shared Collateral (such Authorized Representative exercising its rights and remedies, the “Exercising Representative”), it shall promptly, and in any event within 2 Business Days, transfer to the Exercising Representative upon its request any Possessory Collateral in its possession, the possession of which the Exercising Representative must have in order to enforce its security interest or realize upon such Shared Collateral.

 

(e) No Authorized Representative, acting pursuant to this Section, shall have, by reason of the Security Documents, this Agreement or any other document, a fiduciary relationship in respect of any Secured Party, and each Secured Party hereby waives and releases each Authorized Representative from all claims and liabilities arising pursuant to such Authorized Representative’s role under this Section as gratuitous bailee with respect to the Possessory Collateral.

 

  

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ARTICLE III

 

Determinations with Respect to Obligations and Liens

Whenever, in connection with the exercise of its rights or the performance of its obligations hereunder, the Authorized Representative of a Class shall be required to determine the existence or amount of any Obligations of the other Class, or the Shared Collateral subject to any Lien securing the Obligations of the other Class (and whether such Lien constitutes a valid and perfected Lien), it may request that such information be furnished to it in writing by the Authorized Representative of such Class and shall be entitled to make such determination on the basis of the information so furnished; provided that if, notwithstanding such request, the Authorized Representative of the applicable Class shall refuse to provide, or fail to reasonably promptly provide, the requested information, the requesting Authorized Representative shall be entitled to make any such determination by such method as it may, in the exercise of its good faith judgment, determine, including by reliance upon a certificate of a Responsible Officer of the Borrower Representative. Each Authorized Representative may rely conclusively, and shall be fully protected in so relying, on any determination made by it in accordance with the provisions of the preceding sentence (or as otherwise directed by a court of competent jurisdiction) and shall have no liability to any Grantor, any Secured Party or any other Person as a result of such determination or any action taken or not taken pursuant thereto.

 

ARTICLE IV

 

Concerning the Authorized Representatives

 

SECTION 4.01. Authority. Each of the Authorized Representatives, for itself and on behalf of its Related Secured Parties, acknowledges and agrees that each Authorized Representative shall be entitled, for the benefit of the Secured Parties, to sell, transfer or otherwise dispose of or deal with any Shared Collateral as provided herein and in the Security Documents, without regard to any rights, remedies or powers to which the Related Secured Parties of the other Authorized Representative would otherwise be entitled as a result of their Secured Obligations. Without limiting the foregoing, each of the Authorized Representatives, for itself and on behalf of its Related Secured Parties, agrees that neither Authorized Representative or any other Secured Party shall have any duty or obligation first to marshal or realize upon any type of Shared Collateral (or any other Collateral securing any of the Obligations), or to sell, dispose of or otherwise liquidate all or any portion of such Shared Collateral (or any other Collateral securing any Obligations), in any manner that would maximize the return to the other Authorized Representative and its Related Secured Parties, notwithstanding that the order and timing of any such realization, sale, disposition or liquidation may affect the amount of Proceeds actually received by the other Authorized Representative and its Related Secured Parties from such realization, sale, disposition or liquidation. Each of the Authorized Representatives, for itself and on behalf of its Related Secured Parties, waives any claim it may now or hereafter have against the other Authorized Representative or any Secured Party of the other Class arising out of (a) any actions that such Authorized Representative or Secured Party takes or omits to take (including actions with respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale or other disposition of, release or depreciation of, or failure to realize upon, any of the Collateral and actions with respect to the collection of any claim for all or any part of the Obligations from any account debtor, guarantor or any other party) in accordance with the Security Documents or any other agreement related thereto or to the collection of the Class of Obligations for which it is the Authorized Representative or the valuation, use, protection or release of any security for such Obligations, (b) any election by such Authorized Representative or Secured Parties, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b) of the Bankruptcy Code or (c) subject to Section 2.06, any borrowing by, or grant of a security interest or administrative expense priority under Section 364 of the Bankruptcy Code or any equivalent provision of or order granted pursuant to any other Bankruptcy Law by, any Borrower or any of the Subsidiaries, as debtor-in-possession. Notwithstanding any other provision of this Agreement, neither Authorized Representative shall accept any Shared Collateral in full or partial satisfaction of any Obligations pursuant to Section 9-620 of the Uniform Commercial Code of any jurisdiction, or any similar provision of any other personal property security laws in any other jurisdiction, without the consent of the other Authorized Representative representing Secured Parties for whom such Collateral constitutes Shared Collateral.

  

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SECTION 4.02. Rights as a Secured Party. Each Person serving as an Authorized Representative hereunder shall have the same rights and powers in its capacity as a Secured Party of a Class as any other Secured Party of such Class and may exercise the same as though it were not an Authorized Representative, and the term “Secured Party”, “Secured Parties”, “Credit Agreement Secured Party”, “Credit Agreement Secured Parties”, “Term Loan Agreement Secured Party”, or “Term Loan Agreement Secured Parties”, as applicable, shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as an Authorized Representative hereunder in its individual capacity. Each Person serving as an Authorized Representative and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with any Borrower or any Subsidiary or other Affiliate as if such Person were not an Authorized Representative hereunder and without any duty to account therefor to any other Secured Party.

 

SECTION 4.03. Exculpatory Provisions. Neither Authorized Representative shall have any duties or obligations except those expressly set forth herein and in the other Security Documents. Without limiting the generality of the foregoing, neither Authorized Representative:

 

(i) shall be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing;

 

(ii) shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the Security Documents that such Authorized Representative is required to exercise; provided that neither Authorized Representative shall be required to take any action that, in its opinion or in the opinion of its counsel, may expose such Authorized Representative to liability or that is contrary to any Security Document (as modified by this Agreement) or applicable law;

 

(iii) shall, except as expressly set forth in this Agreement and in the Security Documents, have any duty to disclose, and neither Authorized Representative shall be liable for the failure to disclose, any information relating to any Borrower or any Subsidiary or any of its other Affiliates that is communicated to or obtained by the Person serving as an Authorized Representative or any of its Affiliates in any capacity;

  

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(iv) shall be liable for any action taken or not taken by it (A) in the absence of its own gross negligence or willful misconduct or (B) in reliance on a certificate of a Responsible Officer of the Borrower Representative stating that such action is permitted by the terms of this Agreement;

 

(v) shall be deemed to have knowledge of any Default or Event of Default under any Secured Documents of the other Class unless and until notice describing such Default or Event of Default is given to such Authorized Representative by the Authorized Representative of such other Class or a Borrower; and

 

(vi) shall be responsible for or have any duty to ascertain or inquire into (A) any statement, warranty or representation made in or in connection with this Agreement or any Security Document, (B) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (C) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default, (D) the validity, enforceability, effectiveness or genuineness of this Agreement, any Security Document or any other agreement, instrument or document, or the validity, attachment, creation, perfection, priority or enforceability of any Lien purported to be created by the Security Documents, (E) the value or the sufficiency of any Collateral for Obligations of any Class or (F) the satisfaction of any condition set forth in any Credit Document, other than to confirm receipt of items expressly required to be delivered to such Authorized Representative.

 

SECTION 4.04. Reliance by the Authorized Representatives. Each Authorized Representative shall be entitled to rely, and shall not incur any liability for relying, upon any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. Each Authorized Representative shall also be entitled to rely, and shall not incur any liability for relying, upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person. Each Authorized Representative may consult with legal counsel (who may be counsel for the Borrowers, any other Grantor or either Authorized Representative), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

SECTION 4.05. Delegation of Duties. Each Authorized Representative may perform any and all of its duties and exercise its rights and powers hereunder or under any other Security Document by or through any one or more sub-agents appointed by such Authorized Representative. Each Authorized Representative and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Affiliates of such Authorized Representative and any such sub-agent, and shall apply to their respective activities as an Authorized Representative.

  

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SECTION 4.06. Collateral Matters.

 

(a) Each of the Secured Parties irrevocably authorizes each Authorized Representative, at its option and in its discretion:

 

(i) to release any Lien on any property granted to or held by either Authorized Representative under any Security Document in accordance with Sections 2.03 and 2.05 or upon receipt of a certificate of a Responsible Officer of the Borrower Representative stating that such release is permitted by the terms of the Credit Documents; and

 

(ii) to release any Grantor from its obligations under the Security Documents upon receipt of a certificate of a Responsible Officer of the Borrower Representative stating that such release is permitted by the terms of the Credit Documents.

 

(b) Neither Authorized Representative shall accept any Collateral for its benefit and/or the benefit of its Related Secured Parties that is not also provided as Collateral for the benefit of the other Authorized Representative and/or its Related Secured Parties other than, in the case of the Credit Agreement Collateral Agent, the Excluded Collateral.

 

ARTICLE V

 

No Reliance; No Liability

 

SECTION 5.01. No Reliance; Information. Each Authorized Representative, for itself and on behalf of its Related Secured Parties, acknowledges that (a) such Authorized Representative and its Related Secured Parties have, independently and without reliance upon the other Authorized Representative or any of its Related Secured Parties, and based on such documents and information as they have deemed appropriate, made their own credit analysis and decision to enter into the Credit Documents to which they are party and (b) such Authorized Representative and its Related Secured Parties will, independently and without reliance upon the other Authorized Representative or any of its Related Secured Parties, and based on such documents and information as they shall from time to time deem appropriate, continue to make their own credit decision in taking or not taking any action under this Agreement or any other Credit Document to which they are party. The Authorized Representative or Secured Parties of a Class shall have no duty to disclose to any Secured Party of the other Class any information relating to any Borrower or any Subsidiary, or any other circumstance bearing upon the risk of nonpayment of any of the Obligations, that is known or becomes known to any of them or any of their Affiliates. If the Authorized Representative or any Secured Party of a Class, in its sole discretion, undertakes at any time or from time to time to provide any such information to, as the case may be, the Authorized Representative or any Secured Party of the other Class, it shall be under no obligation (i) to make, and shall not be deemed to have made, any express or implied representation or warranty, including with respect to the accuracy, completeness, truthfulness or validity of the information so provided, (ii) to provide any additional information or to provide any such information on any subsequent occasion or (iii) to undertake any investigation.

  

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SECTION 5.02. No Warranties or Liability. (a) Each Authorized Representative, for itself and on behalf of its Related Secured Parties, acknowledges and agrees that no Authorized Representative or any Secured Party of the other Class has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Credit Documents, the ownership of any Shared Collateral or the perfection or priority of any Liens thereon. The Authorized Representative and the Secured Parties of each Class will be entitled to manage and supervise their loans and other extensions of credit in the manner determined by them.

 

(b) No Authorized Representative or Secured Party of a Class shall have any express or implied duty to the Authorized Representative or any Secured Party of the other Class to act or refrain from acting in a manner that allows, or results in, the occurrence or continuance of a Default or an Event of Default under any Credit Document (other than, in each case, this Agreement), regardless of any knowledge thereof that they may have or be charged with.

 

ARTICLE VI

 

Refinanced Obligations

 

The Borrowers may, at any time and from time to time, subject to any limitations contained in the Credit Documents in effect at such time, Refinance the Credit Agreement Obligations or the Term Loan Agreement Obligations, which Obligations are, or are to be, secured by Liens on any assets of any Borrower or any other Subsidiary, by delivering to each a certificate of a Responsible Officer of the Borrower Representative:

 

(a) identifying the Class of Obligations being Refinanced, and including a statement of the maximum aggregate outstanding principal amount of such indebtedness as of the date of such certificate;

 

(b) setting forth the Refinancing Debt Documents under which such Class of Obligations are being Refinanced, or the guarantees of or Liens securing such Class of Obligations are, or are to be, created, and attaching copies of such Refinancing Debt Documents as each Grantor has executed and delivered to the Person that (i) is the Secured Party with respect to such Class of Obligations or (ii) serves as the administrative agent, trustee or a similar representative for the holders of such Obligations (such Person being referred to as the “Successor Authorized Representative”) with respect to such Class of Obligations on the closing date of such Class of Obligations, certified as being true and complete by a Responsible Officer of the Borrower Representative;

 

(c) identifying the Person that is the Successor Authorized Representative;

 

(d) certifying that the Refinancing, the creation of the Liens securing such Credit Agreement Obligations or Term Loan Obligations, as applicable, do not violate or result in a default under Section 2.03(b) of this Agreement or any other provision of the Credit Documents in effect at such time;

  

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(e) certifying that the Refinancing Debt Documents authorize the Successor Authorized Representative to become a party hereto by executing and delivering an Authorized Representative Joinder Agreement and provide that upon such execution and delivery, such Credit Agreement Obligations or Term Loan Obligations, as applicable, that are Refinanced and the holders thereof shall become subject to and bound by the provisions of this Agreement; and

 

(f) attaching a fully completed Authorized Representative Joinder Agreement executed and delivered by the Successor Authorized Representative.

 

ARTICLE VII

 

Miscellaneous

 

SECTION 7.01. Notices. Any notice or other communications herein required or permitted shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile, as follows:

 

(a) if to any Grantor, to it (or, in the case of any Grantor other than a Borrower, to it in care of the Borrower Representative) at LEXINGTON REALTY TRUST, One Penn Plaza, Suite 4015, New York, new York 10119, Attention of Patrick Carroll (Facsimile No.: (212) 594-6600) with a copy to: Post Heymann & Koffler LLP, Two Jericho Plaza, Wing A, Jericho, New York 11753, Attention of David J. Heymann, Esquire (Facsimile No.: (516) 433-2777);

 

(b) if to the Credit Agreement Collateral Agent, to it at KEYBANK NATIONAL ASSOCIATION, 225 Franklin Street, Boston, Massachusetts 02110, Attention of Jeffry M. Morrison (Facsimile No.: (704) 385-6293); and

 

(c) if to the Term Loan Agreement Collateral Agent, to it at WELLS FARGO BANK, NATIONAL ASSOCIATION, 301 South College Street, Charlotte, North Carolina 28288, Attention of D. Brian Gregory, (Facsimile No.: (704) 383-6228); and

 

(d) if to any Successor Authorized Representative, to it at the address set forth in the applicable Joinder Agreement.

 

Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of facsimile notice, when received. As agreed to in writing by any party hereto from time to time, notices and other communications to such party may also be delivered by e-mail to the e-mail address of a representative of such party provided from time to time by such party.

  

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SECTION 7.02.  Waivers; Amendment; Joinder Agreements.  (a)  No failure or delay on the part of any party hereto in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the parties hereto are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by any party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice or demand on any party hereto in any case shall entitle such party to any other or further notice or demand in similar or other circumstances.

 

(b)  Neither this Agreement nor any provision hereof may be amended, modified, terminated or waived except pursuant to an agreement or agreements in writing entered into by each Authorized Representative then party hereto; provided that no such agreement shall by its terms amend, modify, terminate, waive or otherwise affect the rights or obligations of any Grantor without the Borrowers’ prior written consent; provided, further, that (i) without the consent of any party hereto, (A) this Agreement may be supplemented by a Grantor Joinder Agreement, and a Subsidiary may become a party hereto, in accordance with Section 7.13 and (B) this Agreement may be supplemented by an Authorized Representative Joinder Agreement, and a Successor Authorized Representative may become a party hereto, in accordance with Article VI, and (ii) in connection with any Refinancing of Obligations of either Class, the Authorized Representatives, the Borrowers and the Grantors may enter into (and are hereby authorized to enter into without the consent of any other Secured Party) such amendments or modifications of this Agreement as (A) are reasonably necessary to reflect such Refinancing or (B) are otherwise reasonably satisfactory and acceptable to the Authorized Representatives, the Borrowers and the Grantors (it being understood and agreed that no such amendment or modification shall alter in any adverse respect the rights of the Secured Parties of any Class to receive distributions in respect of Obligations of such Class pursuant to Section 2.01(b) as compared to the comparable rights of the Secured Parties of any other Class).

 

SECTION 7.03.  Parties in Interest.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as well as the other Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this Agreement.

 

SECTION 7.04.  Effectiveness; Survival.  This Agreement shall become effective upon the execution of a counterpart hereof by each of the parties hereto.  All representations, warranties and agreements made herein by any party shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery hereof.  This Agreement shall continue in full force and effect notwithstanding the commencement of any Insolvency or Liquidation Proceeding against any Borrower or any Subsidiary.

 

SECTION 7.05.  Counterparts.  This Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by facsimile or electronic (i.e., “pdf”) transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower Representative and each of the Authorized Representatives.

  

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SECTION 7.06.  Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 7.07.  GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE SAME ARE NOT MANDATORILY APPLICABLE BY STATUTE AND THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 7.08.  Submission to Jurisdiction Waivers; Consent to Service of Process.  All judicial proceedings brought against any party hereto arising out of or relating to this Agreement and the Security Documents, or for recognition and enforcement of any judgment in respect thereof, may be brought in any state or federal court of competent jurisdiction in the State, County and City of New York.  By executing and delivering this Agreement, each Authorized Representative, for itself and on behalf of its Related Secured Parties, irrevocably:

 

(a)  accepts generally and unconditionally the nonexclusive jurisdiction and venue of such courts;

 

(b)  waives any defense of forum non conveniens;

 

(c)  agrees that service of all process in any such proceeding in any such court may be made by registered or certified mail, return receipt requested, to the applicable party at its address provided in accordance with Section 7.01;

 

(d)  agrees that service as provided in clause (c) above is sufficient to confer personal jurisdiction over the applicable party in any such proceeding in any such court, and otherwise constitutes effective and binding service in every respect;

 

(e)  agrees that nothing herein shall affect the right of any other party hereto (or any Secured Party) to serve process in any other manner permitted by law or to bring proceedings against any other party hereto (or any Secured Party) in the courts of any other jurisdiction; and

 

(f)  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.

 

SECTION 7.09.  WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

  

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SECTION 7.10.  Headings.  Article and Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

 

SECTION 7.11.  Conflicts. In the event of any conflict or inconsistency between the provisions of this Agreement (including Section 2.05 hereof) and the provisions of any of the other Credit Documents, the provisions of this Agreement shall control.

 

SECTION 7.12.  Provisions Solely to Define Relative Rights. The provisions of this Agreement are and are intended solely for the purpose of defining the relative rights of the Secured Parties in relation to one another.  Except as expressly provided in this Agreement, none of the Borrowers, any other Grantor, any Subsidiary or any other creditor of any of the foregoing shall have any rights or obligations hereunder, and none of the Borrowers, Grantors or  the Subsidiaries may rely on the terms hereof.  Nothing in this Agreement is intended to or shall impair the obligations of any Borrower or any other Grantor, which are absolute and unconditional, to pay the Obligations as and when the same shall become due and payable in accordance with their terms.

 

SECTION 7.13.  Additional Grantors.  In the event any Subsidiary of any Borrower shall have granted a Lien on any of its assets to secure any Obligations, the Borrowers shall cause such Subsidiary, if not already a party hereto, to become a party hereto as a “Grantor”.  Upon the execution and delivery by any Subsidiary of a Grantor Joinder Agreement, any such Subsidiary shall become a party hereto and a Grantor hereunder with the same force and effect as if originally named as such herein.  The execution and delivery of any such instrument shall not require the consent of any other party hereto.  The rights and obligations of each party hereto shall remain in full force and effect notwithstanding the addition of any new Grantor as a party to this Agreement.

 

SECTION 7.14.  Integration.  This Agreement, together with the other Credit Documents, represents the agreement of each of the Grantors and the Secured Parties with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by any Grantor, the Authorized Representatives or any other Secured Party relative to the subject matter hereof not expressly set forth or referred to herein or in the other Credit Documents.

 

SECTION 7.15.  Further Assurances.  Each of the Authorized Representatives and the Grantors agrees that it will execute, or will cause to be executed, any and all further documents, agreements and instruments, and take all such further actions, as may be required under any applicable law, or which either Authorized Representative may reasonably request, to effectuate the terms of this Agreement, including the relative Lien priorities provided for herein.

 

SECTION 7.16.  Termination.  Upon the earlier of (a) the Release Date and (b) the indefeasible payment and performance in full of the Credit Agreement Obligations and/or the Term Loan Agreement Obligations, in each case, after giving effect to any Refinancing thereof effected in accordance with Article VI of this Agreement that is secured by a Lien on the Shared Collateral, this Agreement shall terminate without further action on the part of the parties hereto.

  

- 22 -

  

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

	
KEYBANK NATIONAL ASSOCIATION,

	
as the Credit Agreement Collateral Agent

	  	  	  
	  	
By: 

	
/s/ Jane E. McGrath

	  	  	
Name: Jane E. McGrath

	  	  	
Title:   Vice President

  

- 23 -

  

	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

	
as the Term Loan Agreement Collateral Agent

	  	  	  
	  	
By: 

	
/s/ D. Bryan Gregory

	  	  	
Name: D. Bryan Gregory

	  	  	
Title:   Director

  

- 24 -

  

	
GRANTORS:

	 
	
LEXINGTON REALTY TRUST

	  
	
By: 

	
/s/ Joseph S. Bonventre

	
Name:   Joseph S. Bonventre

	
Title:     Executive Vice President

	  
	
LEXINGTON ACQUIPORT COMPANY, LLC

	
LEXINGTON DUNCAN MANAGER LLC

	
LEXINGTON MLP WESTERVILLE MANAGER LLC

	
LEXINGTON LAC LENEXA GP LLC

	
LEXINGTON COLUMBUS GP LLC

	
LEX WESTERVILLE GP LLC

	
LEX ROCK HILL GP LLC

	
LEXINGTON ALLEN MANAGER LLC

	  
	
Each By: Lexington Realty Trust, its sole member

	  	  
	  	
By: 

	
 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Executive Vice President

	  	  	  
	
ACQUIPORT 550 MANAGER LLC

	
ACQUIPORT 600 MANAGER LLC

	
ACQUIPORT WINCHESTER MANAGER LLC

	  
	
Each By: Lexington Acquiport Company, LLC, its sole member

	  	  	  
	  	
By: Lexington Realty Trust, its sole member

	  	  	  
	  	  	
By: 

	 
/s/ Joseph S. Bonventre

	
  

	  	
Name:   Joseph S. Bonventre

	
  

	  	
Title:     Vice President

	  
	
LEX GP-1 TRUST

	  
	
By: 

	
 
/s/ Joseph S. Bonventre

	
Name:   Joseph S. Bonventre

	
Title:     Vice President

[Signatures Continued on Next Page]

[Signature page to Intercreditor Agreement]

  

 

  

	
LEPERCQ CORPORATE INCOME FUND L.P.

	  
	
By: Lex GP-1 Trust, its sole general partner

	  	  	  	  	  
	  	
By: 

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  	  	  
	
LEPERCQ CORPORATE INCOME FUND II L.P.

	  
	
By: Lex GP-1 Trust, its sole general partner

	  	  	  	  	  
	  	
By:

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  	  	  
	
PHOENIX HOTEL ASSOCIATES LIMITED PARTNERSHIP

	  	  	  	  	  
	
By:

	
Lepercq Corporate Income Fund II L.P., 

	  	
its sole general partner

	  	  	  	  	  
	  	
By: Lex GP-1 Trust, its sole general partner

	  	  	  	  	  
	  	  	
By: 

	 
/s/ Joseph S. Bonventre

	  	  	
Name:   Joseph S. Bonventre

	  	  	
Title:     Vice President

	  	  	  	  	  
	
LEXINGTON BRISTOL GP LLC

	
LEXINGTON DULLES MANAGER LLC

	  	  	  	  	  
	
Each By: 

	
Phoenix Hotel Associates Limited Partnership, 

	  	
its sole member

	  	  	  	  	  
	  	
By:

	
Lepercq Corporate Income Fund II L.P., 

	 	 	
its sole general partner

	  	  	  	  	  
	  	  	
By: Lex GP-1 Trust, its sole general partner

	  	  	  	  	  
	  	  	  	
By: 

	
 
/s/ Joseph S. Bonventre

	  	  	  	
Name:   Joseph S. Bonventre

	
  

	  	  	
Title:     Vice President

[Signatures Continued on Next Page]

[Signature page to Intercreditor Agreement]

  

 

  

	
LEXINGTON FLORENCE MANAGER LLC

	
LEXINGTON FORT STREET TRUSTEE LLC

	
LEXINGTON HONOLULU MANAGER LLC

	
LEXINGTON SOUTHFIELD LLC

	
LEXINGTON TOY TRUSTEE LLC

	
LEXINGTON OLIVE BRANCH MANAGER LLC

	
LEXINGTON LAKE FOREST MANAGER LLC

	
LEXINGTON WALLINGFORD MANAGER LLC

	
LEXINGTON HIGH POINT MANAGER LLC

	
LEXINGTON COLLIERVILLE MANAGER LLC

	
LEXINGTON LOUISVILLE MANAGER LLC

	  
	
Each By: Lepercq Corporate Income Fund L.P., its sole member

	  	  	  	  
	  	
By: Lex GP-1 Trust, its sole general partner

	  	  	  	  
	  	  	
By:

	
 
/s/ Joseph S. Bonventre

	  	  	
Name:   Joseph S. Bonventre

	  	  	
Title:    Vice President

	  	  	  	  
	
LEXINGTON SHELBY GP LLC

	
LEXINGTON TAMPA GP LLC

	  
	
Each By: 

	
Lepercq Corporate Income Fund II L.P., 

	  	
its sole member

	  	  	  	  
	  	
By: Lex GP-1 Trust, its sole general partner

	  	  	  	  
	  	  	
By: 

	
 
/s/ Joseph S. Bonventre

	  	  	
Name:   Joseph S. Bonventre

	  	  	
Title:     Vice President

	  	  	  	  
	
LEX GP HOLDING LLC

	  
	
By: MLP Manager Corp., its sole manager

	  	  	  	  
	  	
By: 

	
 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

[Signatures Continued on Next Page]

[Signature page to Intercreditor Agreement]

  

 

  

	
NEWKIRK ALTENN GP LLC

	
NEWKIRK AVREM GP LLC

	
NEWKIRK BASOT GP LLC

	
NEWKIRK CAROLION GP LLC

	
NEWKIRK CLIFMAR GP LLC

	
NEWKIRK DALHILL GP LLC

	
NEWKIRK ELWAY GP LLC

	
NEWKIRK GERSANT GP LLC

	
NEWKIRK JACWAY GP LLC

	
NEWKIRK JLE WAY GP LLC

	
NEWKIRK JOHAB GP LLC

	
NEWKIRK LANMAR GP LLC

	
NEWKIRK LIROC GP LLC

	
NEWKIRK ORPER GP LLC

	
NEWKIRK SABLEMART GP LLC

	
NEWKIRK SALISTOWN GP LLC

	
NEWKIRK SUNWAY GP LLC

	
NEWKIRK SUPERWEST GP LLC

	
NEWKIRK WALANDO GP LLC

	
NEWKIRK WASHTEX GP LLC

	  
	
Each By: MLP Manager Corp., its sole manager

	  
	  	
By: 

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  
	
LEXINGTON ACQUIPORT SIERRA LLC

	  
	
By: Acquiport Sierra Manager Corp., its sole manager

	  
	  	
By:

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  
	
LEX-PROPERTY HOLDINGS LLC

	  
	
By: 

	 
/s/ Joseph S. Bonventre

	
Name:   Joseph S. Bonventre

	
Title:     Vice President

[Signatures Continued on Next Page]

[Signature page to Intercreditor Agreement]

  

 

  

	
NK-ODW/COLUMBUS PROPERTY MANAGER LLC

	
NK-LUMBERTON PROPERTY MANAGER LLC

	
NK-CINN HAMILTON PROPERTY MANAGER LLC

	  
	
Each By: Lex-Property Holdings LLC, its sole member

	  
	  	
By: 

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  	  
	
LSAC OPERATING PARTNERSHIP L.P.

	  
	
By: LSAC General Partner LLC, its sole general partner

	  	  	  	  
	  	
By:

	 
/s/ Joseph S. Bonventre

	
  

	
Name:   Joseph S. Bonventre

	
  

	
Title:     Vice President

	  	  	  	  
	
LSAC CROSSVILLE MANAGER LLC

	  
	
By: LSAC Operating Partnership L.P., its sole member

	  	  	  	  
	  	
By: LSAC General Partner LLC, its sole general partner

	  	  	  	  
	  	  	
By: 

	 
/s/ Joseph S. Bonventre

	  	  	
Name:   Joseph S. Bonventre

	  	  	
Title:     Vice President

	  
	
LXP I, L.P.

	  
	
By: LXP I Trust, its sole general partner

	  
	  	
By:

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  	  
	
LEXINGTON REALTY ADVISORS, INC.

	  	  	  	  
	
By:

	 
/s/ Joseph S. Bonventre

	
Name:   Joseph S. Bonventre

	
Title:     Vice President

[Signatures Continued on Next Page]

[Signature page to Intercreditor Agreement]

  

 

  

	
LEXINGTON WAXAHACHIE MANAGER LLC

	  
	
By: Lexington Realty Advisors, Inc., its sole member

	  	  	  	  
	  	
By:

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  	  
	
LEXINGTON DURHAM INC. 

	  
	
By: 

	 
/s/ Joseph S. Bonventre

	
Name:   Joseph S. Bonventre

	
Title:     Vice President

	  	  	  	  
	
NEWKIRK MLP UNIT LLC

	  	  	  	  
	
By:

	 
/s/ Joseph S. Bonventre

	
Name:   Joseph S. Bonventre

	
Title:     Vice President

	  	  	  	  
	
MLP UNIT PLEDGE GP LLC

	  	  	  	  
	
By: Newkirk MLP Unit LLC, its sole member

	  	  	  	  
	  	
By: 

	 
/s/ Joseph S. Bonventre

	  	
Name:   Joseph S. Bonventre

	  	
Title:     Vice President

	  	  	  	  
	
MLP UNIT PLEDGE L.P.

	  	  	  	  
	  	
By: MLP Unit Pledge GP LLC, its sole general partner

	  	  	  	  
	  	  	
By: Newkirk MLP Unit LLC, its sole member

	  	  	  	  
	  	  	  	
By: 

	 
/s/ Joseph S. Bonventre

	  	  	  	
Name:   Joseph S. Bonventre

	  	  	  	
Title:     Vice President

[Signature page to Intercreditor Agreement]

  

 

  

 

SCHEDULE 1

 

Initial Grantors

	
1.

	
Acquiport 550 Manager LLC

	
2.

	
Acquiport 600 Manager LLC

	
3.

	
Acquiport Winchester Manager LLC

	
4.

	
Lepercq Corporate Income Fund II L.P.

	
5.

	
Lepercq Corporate Income Fund L.P.

	
6.

	
Lex GP -1 Trust

	
7.

	
Lex GP Holding LLC

	
8.

	
Lex Rock Hill GP LLC

	
9.

	
Lex Westerville GP LLC

	
10.

	
Lexington Acquiport Company, LLC

	
11.

	
Lexington Acquiport Sierra LLC

	
12.

	
Lexington Allen Manager LLC

	
13.

	
Lexington Bristol GP LLC

	
14.

	
Lexington Collierville Manager LLC

	
15.

	
Lexington Columbus GP LLC

	
16.

	
Lexington Dulles Manager LLC

	
17.

	
Lexington Duncan Manager LLC

	
18.

	
Lexington Durham, Inc.

	
19.

	
Lexington Florence Manager LLC

	
20.

	
Lexington Fort Street Trustee LLC

	
21.

	
Lexington High Point Manager LLC

	
22.

	
Lexington Honolulu Manager LLC

	
23.

	
Lexington LAC Lenexa GP LLC

	
24.

	
Lexington Lake Forest Manager LLC

	
25.

	
Lexington Louisville Manager LLC

	
26.

	
Lexington MLP Westerville Manager LLC

	
27.

	
Lexington Olive Branch Manager LLC

	
28.

	
Lexington Realty Advisors, Inc.

	
29.

	
Lexington Realty Trust

	
30.

	
Lexington Shelby GP LLC

	
31.

	
Lexington Southfield LLC

	
32.

	
Lexington Tampa GP LLC

	
33.

	
Lexington Toy Trustee LLC

	
34.

	
Lexington Wallingford Manager LLC

	
35.

	
Lexington Waxahachie Manager LLC

	
36.

	
Lex-Property Holdings LLC

	
37.

	
LSAC Crossville Manager LLC

	
38.

	
LSAC Operating Partnership L.P.

	
39.

	
LXP I, L.P.

	
40.

	
MLP Unit Pledge GP LLC

	
41.

	
MLP Unit Pledge L.P.

	
42.

	
Newkirk Altenn GP LLC

	
43.

	
Newkirk Avrem GP LLC

	
44.

	
Newkirk Basot GP LLC

  

 

  

	
45.

	
Newkirk Carolion GP LLC

	
46.

	
Newkirk Clifmar GP LLC

	
47.

	
Newkirk Dalhill GP LLC

	
48.

	
Newkirk Elway GP LLC

	
49.

	
Newkirk Gersant GP LLC

	
50.

	
Newkirk Jacway GP LLC

	
51.

	
Newkirk JLE Way GP LLC

	
52.

	
Newkirk Johab GP LLC

	
53.

	
Newkirk Lanmar GP LLC

	
54.

	
Newkirk Liroc GP LLC

	
55.

	
Newkirk MLP Unit LLC

	
56.

	
Newkirk Orper GP LLC

	
57.

	
Newkirk Sablemart GP LLC

	
58.

	
Newkirk Salistown GP LLC

	
59.

	
Newkirk Sunway GP LLC

	
60.

	
Newkirk Superwest GP LLC

	
61.

	
Newkirk Walando GP LLC

	
62.

	
Newkirk Washtex GP LLC

	
63.

	
NK-CINN Hamilton Property Manager LLC

	
64.

	
NK-Lumberton Property Manager LLC

	
65.

	
NK-ODW/Columbus Property Manager LLC

	
66.

	
Phoenix Hotel Associates Limited Partnership

  

  

 

  

 

EXHIBIT I

 

[FORM OF] AUTHORIZED REPRESENTATIVE AGENT JOINDER AGREEMENT NO. [●] dated as of [●] (this “Joinder Agreement”), to the INTERCREDITOR AGREEMENT, dated as of January 13, 2012 (the “Intercreditor Agreement”), LEXINGTON REALTY TRUST, a real estate investment trust formed under the laws of the State of Maryland (the “Trust”), LEPERCQ CORPORATE INCOME FUND L.P. a limited partnership formed under the laws of the State of Delaware (“LEPERCQ Fund”), and LEPERCQ CORPORATE INCOME FUND II L.P. a limited partnership formed under the laws of the State of Delaware (“LEPERCQ Fund II”; together with the Trust and LEPERCQ Fund, each individually a “Borrower” and collectively, the “Borrowers”), the other GRANTORS (as defined below) party hereto, KEYBANK NATIONAL ASSOCIATION, as the Authorized Representative for the Credit Agreement Secured Parties (in such capacity, the “Credit Agreement Collateral Agent”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as Authorized Representative for the Term Loan Agreement (in such capacity, the “Term Loan Agreement Collateral Agent”) and each SUCCESSOR AUTHORIZED REPRESENTATIVE from time to time party thereto.

 

Capitalized terms used herein but not otherwise defined herein shall have the meanings assigned to such terms in the Intercreditor Agreement.

 

The Borrower and the other Grantors propose to Refinance the [Credit Agreement Obligations] [Term Loan Obligations].  The Person identified in the signature pages hereto as the “Successor Authorized Representative” (the “Successor Authorized Representative”) will (a) be the Secured Party with respect to the [Credit Agreement Obligations] [Term Loan Obligations] that are Refinanced or (b) serve as the administrative agent, trustee or a similar representative for the holders of the such Obligations.

 

The Successor Authorized Representative wishes, in accordance with the provisions of the Intercreditor Agreement, to become a party to the Intercreditor Agreement and to acquire and undertake, for itself and on behalf of its Related Secured Parties, the rights and obligations of the [Credit Agreement Collateral Agent] [Term Loan Agreement Collateral Agent] and its Related Secured Parties thereunder.

 

Accordingly, the Successor Authorized Representative, for itself and on behalf of the holders of the obligations under the Refinancing Debt Documents, and the Borrowers agree as follows, for the benefit of the existing Authorized Representative and the existing Secured Parties:

  

 

  

SECTION 1.01.  Accession to the Intercreditor Agreement.   The Successor Authorized Representative hereby (a) accedes and becomes a party to the Intercreditor Agreement as the [Credit Agreement Collateral Agent] [Term Loan Agreement Collateral Agent] (b) agrees, for itself and on behalf of holders of the obligations under the Refinancing Debt Documents, to all the terms and provisions of the Intercreditor Agreement and (c) acknowledges and agrees that (i) for all purposes of the Intercreditor Agreement, the [Credit Agreement Obligations] [Term Loan Obligations] will be deemed not to have been Discharged, and the obligations under the Refinancing Debt Documents shall be [Credit Agreement Obligations] [Term Loan Obligations], (iii) the Liens on any Collateral securing the obligations under the Refinancing Debt Documents shall be subject to the provisions of the Intercreditor Agreement and (iv) the Successor Authorized Representative and the holders of the obligations under the Refinancing Debt Documents shall have the rights and obligations specified under the Intercreditor Agreement with respect to the [Credit Agreement Collateral Agent] [Term Loan Agreement Collateral Agent] or a “Related Secured Party” thereof, and shall be subject to and bound by the provisions of the Intercreditor Agreement.  The Intercreditor Agreement is hereby incorporated by reference.

 

SECTION 1.02.  Representations and Warranties of the Successor Authorized Representative.  The Successor Authorized Representative represents and warrants to the existing Authorized Representative and the existing Secured Parties that (a) it has full power and authority to enter into this Joinder Agreement, in its capacity as the Successor Authorized Representative, (b) this Joinder Agreement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, and (c) the Refinancing Debt Documents relating to the [Credit Agreement Obligations] [Term Loan Obligations] provide that, upon the Successor Authorized Representative’s execution and delivery of this Joinder Agreement, (i) the [Credit Agreement Obligations] [Term Loan Obligations] and Liens on any Collateral securing the same shall be subject to the provisions of the Intercreditor Agreement and (ii) the Successor Authorized Representative its Related Secured Parties shall have the rights and obligations specified therefor under, and shall be subject to and bound by the provisions of, the Intercreditor Agreement.

 

SECTION 1.03.  Parties in Interest.  This Joinder Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as well as the other Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this Agreement.

 

SECTION 1.04.  Counterparts.  This Joinder Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Joinder Agreement by facsimile or electronic (i.e., “pdf”) transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Joinder Agreement signed by all the parties shall be lodged with the Borrower and each Authorized Representative.

  

2

  

SECTION 1.05.  GOVERNING LAW.  THIS JOINDER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE SAME ARE NOT MANDATORILY APPLICABLE BY STATUTE AND THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 1.06.  Notices.  Any notice or other communications herein required or permitted shall be in writing and given as provided in Section 7.01 of the Intercreditor Agreement.  Any notice or other communications hereunder to the Successor Authorized Representative shall be given to it at the address set forth under its signature hereto, which information supplements Section 7.01 to the Intercreditor Agreement.

 

SECTION 1.07.  Expenses.  The Borrowers agree jointly and severally to pay promptly each Authorized Representative, including the Successor Authorized Representative, for its reasonable and documented costs and expenses incurred in connection with this Joinder Agreement, including the reasonable fees, expenses and disbursements of counsel for any of the Authorized Representatives.

 

SECTION 1.08.  Incorporation by Reference.  The provisions of Sections 7.04, 7.06, 7.08, 7.09, 7.10, 7.11 and 7.12 of the Intercreditor Agreement are hereby incorporated by reference, mutatis mutandis, as if set forth in full herein.

 

SECTION 1.09.

 

 IN WITNESS WHEREOF, the Successor Authorized Representative and the Borrowers have duly executed this Joinder Agreement to the Intercreditor Agreement as of the day and year first above written.

	
[●], as Successor Authorized

Representative,

	 
	
by

	  	
  

	  	
Name:

	  	
Title:

	
Address for notices:

	  	  
	  	  
	  	  
	  	  
	  	  
	  	
attention of: 

	  
	  	  	  
	  	
Facsimile:

	  

  

3

  

Acknowledged by:

LEXINGTON REALTY TRUST

	
By:

	  
	
Name: 

	  
	
Title:

	  

LEPERCQ CORPORATE INCOME FUND L.P.

LEPERCQ CORPORATE INCOME FUND II L.P.

	
By:  

	
LEX GP-1 Trust, sole general partner

	  	  
	  	
By:  

	  
	  	  	
Name: 

	  
	  	  	
Title:

	  

  

4

  

 

EXHIBIT II

 

[FORM OF] GRANTOR JOINDER AGREEMENT NO. [●], dated as of [●] (this “Joinder Agreement”), to the INTERCREDITOR AGREEMENT, dated as of January 13, 2012 (the “Intercreditor Agreement”), LEXINGTON REALTY TRUST, a real estate investment trust formed under the laws of the State of Maryland (the “Trust”), LEPERCQ CORPORATE INCOME FUND L.P. a limited partnership formed under the laws of the State of Delaware (“LEPERCQ Fund”), and LEPERCQ CORPORATE INCOME FUND II L.P. a limited partnership formed under the laws of the State of Delaware (“LEPERCQ Fund II”; together with the Trust and LEPERCQ Fund, each individually a “Borrower” and collectively, the “Borrowers”), the other GRANTORS (as defined below) party hereto, KEYBANK NATIONAL ASSOCIATION, as the Authorized Representative for the Credit Agreement Secured Parties (in such capacity, the “Credit Agreement Collateral Agent”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as Authorized Representative for the Term Loan Agreement (in such capacity, the “Term Loan Agreement Collateral Agent”) and each SUCCESSOR AUTHORIZED REPRESENTATIVE from time to time party thereto.

 

Capitalized terms used herein but not otherwise defined herein shall have the meanings assigned to such terms in the Intercreditor Agreement.

 

[●], a [●] [corporation] and a Subsidiary (the “Additional Grantor”), has granted a Lien on all or a portion of its assets to secure Obligations, and such Additional Grantor is not a party to the Intercreditor Agreement.

 

The Additional Grantor wishes to become a party to the Intercreditor Agreement and to acquire and undertake the rights and obligations of a Grantor thereunder.  The Additional Grantor is entering into this Joinder Agreement in accordance with the provisions of the Intercreditor Agreement in order to become a Grantor thereunder.

 

Accordingly, the Additional Grantor agrees as follows, for the benefit of the Authorized Representatives and the Secured Parties:

 

SECTION 1.01.  Accession to the Intercreditor Agreement.  The Additional Grantor (a) hereby accedes and becomes a party to the Intercreditor Agreement as a “Grantor”, (b) agrees to all the terms and provisions of the Intercreditor Agreement and (c) acknowledges and agrees that the Additional Grantor shall have the rights and obligations specified under the Intercreditor Agreement with respect to a “Grantor”, and shall be subject to and bound by the provisions of the Intercreditor Agreement.

 

SECTION 1.02.  Representations and Warranties of the Additional Grantor.  The Additional Grantor represents and warrants to the Authorized Representatives and the Secured Parties that this Joinder Agreement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.

  

 

  

 

SECTION 1.03.  Parties in Interest.  This Joinder Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as well as the other Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this Agreement.

 

SECTION 1.04.  Counterparts.  This Joinder Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Joinder Agreement by facsimile or electronic (i.e., “pdf”) transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Joinder Agreement signed by all the parties shall be lodged with the Borrower Representative and each Authorized Representative.

 

SECTION 1.05.  GOVERNING LAW.  THIS JOINDER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE SAME ARE NOT MANDATORILY APPLICABLE BY STATUTE AND THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 1.06.  Notices.  Any notice or other communications herein required or permitted shall be in writing and given as provided in Section 7.01 of the Intercreditor Agreement.

 

SECTION 1.07.  Expenses.  The Grantor agrees to pay promptly each of the Authorized Representatives for its reasonable and documented costs and expenses incurred in connection with this Joinder Agreement, including the reasonable fees, expenses and disbursements of counsel for each of the Authorized Representatives.

 

SECTION 1.08.  Incorporation by Reference.  The provisions of Sections 7.04, 7.06, 7.08, 7.09, 7.10, 7.11 and 7.12 of the Intercreditor Agreement are hereby incorporated by reference, mutatis mutandis, as if set forth in full herein.

  

2

  

IN WITNESS WHEREOF, the Additional Grantor has duly executed this Joinder Agreement to the Intercreditor Agreement as of the day and year first above written.

	
[NAME OF SUBSIDIARY],

	 
	
by

	  	  
	  	
Name:

	  	
Title:

  

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]