Document:

form10q-exhibit10b.htm

Exhibit 10(b)

 

EXECUTION VERSION

 

AMENDMENT NO. 2 TO AMENDED AND RESTATED LETTER OF CREDIT AGREEMENT

 

AMENDMENT NO. 2 dated as of May 1, 2013 (this "Amendment") to the Amended and Restated Letter of Credit Agreement dated as of August 16, 2012 as amended pursuant to Amendment No. 1 dated as of the date hereof (the "Credit Agreement") among KENTUCKY UTILITIES COMPANY (the "Borrower"), the LENDERS from time to time party thereto (the "Lenders"), SUMITOMO MITSUI BANKING CORPORATION, NEW YORK BRANCH (successor to Banco Bilbao Vizcaya Argentaria, S.A., New York Branch), as Administrative Agent and SUMITOMO MITSUI BANKING CORPORATION, NEW YORK BRANCH, as Issuing Lender.

 

RECITALS:

 

WHEREAS, the Lenders and the Borrower desire to amend the Credit Agreement to extend the maturity date thereof and to modify the definition of "Applicable Percentage".

 

NOW THEREFOR, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

Section 1.  Defined Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.  Each reference to "hereof", "hereunder", "herein" and "hereby" and each other similar reference and each reference to "this Agreement" and each other similar reference contained in the Credit Agreement shall, after this Amendment becomes effective, refer to the Credit Agreement as amended hereby and each reference to "thereof", "thereunder", "therein" and "thereby" and each other similar reference to the Credit Agreement contained in any other Loan Document shall, after this treatment becomes effective refer to the Credit Agreement as amended hereby.

 

Section 2.  Amendments of Credit Agreement.

 

(a)  The definition of "Applicable Percentage" set forth in Section 1.01 of the Credit Agreement is hereby amended to read in its entirety:

 

"Applicable Percentage" means, for purposes of calculating the applicable rate for the Facility Fee for any day for purposes of Section 2.03(a), the appropriate applicable percentage set forth below corresponding to the then current highest Borrower's Ratings; provided, that, in the event that the Borrower's Ratings shall fall within different levels and ratings are maintained by both Rating Agencies, the applicable rating shall be based on the higher of the two ratings unless one of the ratings is two or more levels lower than the other, in which case the applicable rating shall be determined by reference to the level one rating lower than the higher of the two ratings:

 

	  	
Borrower's Ratings

(S&P /Moody's)

	
Applicable Percentage for Facility Fees

	
Category A

	
> A from S&P / A2 from

Moody's

	
0.800%

	
Category B

	
> A- from S&P / A3 from

Moody's

	
0.900%

	
Category C

	
BBB+ from S&P / Baa1 from

Moody's

	
1.000%

	
Category D

	
BBB from S&P / Baa2 from

Moody's

	
1.125%

	
Category E

	
BBB- from S&P / Baa3 from

Moody's

	
1.300%

	
Category F

	
≤BB+ from S&P / Ba1

from Moody's

	
1.425%

 

(b)  The definition of "Termination Date" set forth in Section 1.01 of the Credit Agreement is hereby amended by replacing the words "April 29, 2014" with the words "May 1, 2016".

 

(c)  Each of Section 5.04(a) and 5.04(b) of the Credit Agreement is hereby amended by replacing the words "December 31, 2010" with the words "December 31, 2012".

 

Section 3.  Representations of the Borrower:  The Borrower represents and warrants that:

 

(a) immediately before and after giving effect to this Amendment on the Effective Date, no Default or Event of Default shall have occurred and be continuing; and

 

(b) the representations and warranties of the Borrower contained in the Credit Agreement shall be true and correct on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct as of such earlier date.

 

Section 4.  Conditions.  This Amendment shall become effective as of the date when each of the following conditions shall have been satisfied (the "Effective Date"):

 

(a) the Administrative Agent shall have received counterparts hereof signed by each of the parties hereto or, in the case of any party as to which an executed counterpart shall not have been received, receipt by the Administrative Agent in form satisfactory to it of telegraphic, telex, facsimile or other written confirmation from such party of execution of a counterpart hereof by such party);

 

(b) the representations and warranties set forth in Section 3 shall be true and correct and the Administrative Agent shall have received a certificate dated the Effective Date signed on behalf of the Borrower by the Chairman of the Board, the President, any Vice President, the Chief Administrative Officer, the Chief Financial Officer, the General Counsel, the Chief Compliance Officer, the Corporate Secretary, the Treasurer or any Assistant Treasurer of the Borrower stating that the representations and warranties set forth in Section 3 are true and correct;

 

(c) the Administrative Agent shall have received board resolutions and other customary closing certificates and documentation as the Administrative Agent may reasonably require;

 

(d) the Administrative Agent shall have received from counsel to the Borrower, opinions addressed to the Administrative Agent and each Lender, dated the Effective Date, in form and substance reasonably acceptable to the Administrative Agent and covering such matters relating to this Amendment and the Credit Agreement as the Administrative Agent shall reasonably request; and

 

(e) all costs, fees and expenses due to the Administrative Agent and the Lenders on or before the Effective Date shall have been paid or waived.

 

Section 5.  Governing Law.  This Amendment  shall be governed by and construed in accordance with the laws of the State of New York.

 

Section 6.  Full Force and Effect; Ratification.  Except as expressly modified herein, all of the terms and conditions of the Credit Agreement are unchanged, and, as modified hereby, the Borrower confirms and ratifies all of the terms, covenants and conditions of the Credit Agreement.  This Amendment constitutes the entire and final agreement among the parties hereto with respect to the subject matter hereof and there are no other agreements, understandings, undertakings, representations or warranties among the parties hereto with respect to the subject matter hereof except as set forth herein.

Section 7.  Counterparts. This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

  

  

  

 

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

 

 

 

	  	  	
KENTUCKY UTILITIES COMPANY

	  	  	  
	  	  	  
	  	
By:  

	
/s/ Daniel K. Arbough

	  	  	
Name:  Daniel K. Arbough

	  	  	
Title:  Treasurer

 

 

  

  

  

 

 

 

	  	  	

SUMITOMO MITSUI BANKING CORPORATION, NEW YORK BRANCH, as Administrative Agent, Issuing Lender and Lender

	  	  	  
	  	  	  
	  	
By:  

	
/s/ James D. Weinstein

	  	  	
Name:  James D. Weinstein

	  	  	
Title:  Managing Director

 

 

 

 

	  	  	
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as Lender

 

	  	  	  
	  	  	  
	  	
By:  

	
 
/s/ Bradford Joyce

	  	  	
Name:  Bradford Joyce

	  	  	
Title:  Director

 

 

 

 

	  	  	
UNION BANK, N.A., as Lender

 

	  	  	  
	  	  	  
	  	
By:  

	
/s/ Carmelo Restifo

	  	  	
Name:  Carmelo Restifo

	  	  	
Title:  DirectorAIV-EX10.1_2013.03.31A

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT 
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of April 5, 2013 and effective as of March 31, 2013 (the “Effective Date”), by and among APARTMENT INVESTMENT AND MANAGEMENT COMPANY, a Maryland corporation (the “REIT”), AIMCO PROPERTIES, L.P., a Delaware limited partnership (“AIMCO”) and AIMCO/Bethesda HOLDINGS, INC., a Delaware corporation (“AIMCO/Bethesda”) (the REIT, AIMCO and AIMCO/Bethesda, collectively referred to as the “Borrowers”), each party listed as a “Guarantor” on the signature pages hereto (collectively, the “Guarantors”), KEYBANK NATIONAL ASSOCIATION (“KeyBank”), as Agent for itself and the other Lenders from time to time a party to the Credit Agreement (as hereinafter defined) (KeyBank, in its capacity as Agent, is hereinafter referred to as “Agent”), and each of the undersigned “Lenders” (hereinafter referred to collectively as the “Lenders”).
W I T N E S S E T H:
WHEREAS, the Borrowers, KeyBank, Agent and the other Lenders, among others, are party to that certain Senior Secured Credit Agreement dated as of December 13, 2011 (as the same may be varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated, the “Credit Agreement”); 
WHEREAS, the Guarantors executed and delivered to Agent and the Lenders that certain Continuing Guaranty dated as of December 13, 2011 (as the same may be varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated, the “Guaranty”); and
WHEREAS, the Borrowers and the Guarantors have requested that the Lenders modify the Credit Agreement in certain respects and the Lenders have agreed to modifications on the terms and conditions set forth below;
NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements set forth hereinbelow, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, and as a material inducement to the Lenders to agree to such modifications, the parties do hereby covenant and agree as follows:
1.Definitions.  Capitalized terms used in this Amendment, but which are not otherwise expressly defined in this Amendment, shall have the respective meanings given thereto in the Credit Agreement.

2.Modification of the Credit Agreement.  The Borrowers, Agent and the Lenders do hereby modify and amend the Credit Agreement by deleting the reference to “7.00%” in the definition of “Applicable Capitalization Rate” in Section 1.01 of the Credit Agreement and 

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inserting in lieu thereof “6.75%”, such modification and amendment to be retroactive and effective as of the Effective Date.

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

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

(ii)No Default.  There shall exist no Default or Event of Default.

(iii)Representations and Warranties.  The representations and warranties contained in Article V of the Credit Agreement and in each other Loan Document shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the Amendment Closing Date (except to the extent such representations and warranties specifically relate to an earlier date, in which case they shall only be required to have been true and correct in all material respects as of such earlier date and except that for purposes of this Section 3(iii), the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement).

4.Expenses.  The Borrowers shall pay the reasonable fees and expenses of Agent in connection with this Amendment in accordance with Section 10.04 of the Credit Agreement.

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

6.Consent of the Borrowers and the Guarantors.  By execution of this Amendment, the Borrowers and the Guarantors hereby expressly consent to the modification and amendment relating to the Credit Agreement as set forth herein, and the Borrowers and the Guarantors hereby acknowledge, represent and agree that the Loan Documents remain in full force and effect and constitute the valid and legally binding obligations of Borrowers and Guarantors enforceable against such Persons in accordance with their respective terms.

7.Representations.  Each Borrower and each Guarantor represents and warrants to Agent and the Lenders as follows:

(a)Authorization.  The execution, delivery and performance of this Amendment and the transactions contemplated hereby (i) are within the authority of such Borrower and such Guarantor, (ii) have been duly authorized by all necessary proceedings on the part of the Borrower and such Guarantor, (iii) do not and will not conflict with or result in 

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any breach or contravention of any provision of law, statute, rule or regulation to which such Borrower or such Guarantor is subject or any judgment, order, writ, injunction, license or permit applicable to such Borrower or such Guarantor, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the articles of incorporation, bylaws, operating agreement, partnership agreement, declaration of trust or other charter documents of, or any agreement or other instrument binding upon, such Borrower or such Guarantor, or any of their respective properties, (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of any Borrower or any Guarantor, and (vi) do not require the approval or consent of, action by, notice to or filing with, any Governmental Authority or other Person other than those already obtained and delivered to Agent.

(b)Enforceability.  This Amendment constitutes the valid and legally binding obligations of the Borrowers and the Guarantors, enforceable in accordance with the respective terms and provisions hereof, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

(c)Reaffirmation.  The Borrowers and the Guarantors reaffirm and restate as of the date hereof each and every representation and warranty made by the Borrowers, the Guarantors and their respective Subsidiaries in the Loan Documents or otherwise made by or on behalf of such Persons in connection therewith (except to the extent such representations and warranties specifically relate to an earlier date and except that the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement).

8.No Default.  By execution hereof, the Borrowers certify that as of the date of this Amendment and immediately after giving effect to this Amendment no Default or Event of Default has occurred and is continuing.

9.Waiver of Claims. Each Borrower and each Guarantor acknowledges, represents and agrees that as of the date of this Amendment it has no defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever with respect to the Loan Documents, the administration or funding of the Loan or with respect to any acts or omissions of Agent or any Lender, or any past or present officers, agents or employees of Agent or any Lender, and the Borrowers and Guarantors do hereby expressly waive, release and relinquish any and all such defenses, setoffs, claims, counterclaims and causes of action, if any.

10.Ratification, etc.  Except as hereinabove set forth, all terms, covenants and provisions of the Credit Agreement remain unaltered and in full force and effect, and the parties hereto do hereby expressly ratify and confirm the Loan Documents and the Credit Agreement as modified and amended herein.  Nothing in this Amendment shall be deemed or construed to constitute, and there has not otherwise occurred, a novation, cancellation, satisfaction, release, 

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extinguishment or substitution of the indebtedness evidenced by the Notes or the other obligations of any Borrower or any Guarantor under the Loan Documents.

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

12.Counterparts.  This Amendment may be executed in any number of counterparts which shall together constitute but one and the same agreement.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic image (e.g., “PDF” or “TIF” via electronic mail) shall be effective as delivery of a manually executed counterpart of this Amendment.

13.Miscellaneous.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors, successors-in-title and assigns as provided in the Credit Agreement.  All captions in this Amendment are included herein for convenience of reference only and shall not constitute part of this Amendment for any other purpose.

[remainder of this page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto, acting by and through their respective duly authorized officers and/or other representatives, have duly executed this Amendment, under seal, as of the day and year first above written.
BORROWERS:
APARTMENT INVESTMENT AND MANAGEMENT COMPANY, a Maryland corporation
By:    /s/ Patti K. Fielding            
Name:  Patti K. Fielding
Title:  Executive Vice President and Treasurer

AIMCO PROPERTIES, L.P., a Delaware limited partnership

		
	By:
	AIMCO-GP, INC.,a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding        
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer

AIMCO/BETHESDA HOLDINGS, INC., a Delaware corporation

By:    /s/ Patti K. Fielding            
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer

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GUARANTORS:
AIMCO EQUITY SERVICES, INC., 
a Virginia corporation
AIMCO HOLDINGS QRS, INC. , 
a Delaware corporation
AIMCO-LP TRUST, 
a Delaware trust
AIMCO PROPERTIES FINANCE CORP, 
a Delaware corporation
ANGELES REALTY CORPORATION II, 
a California corporation
CONCAP EQUITIES, INC.,
a Delaware corporation
NHP A&R SERVICES, INC.,
a Virginia corporation
NHPMN STATE MANAGEMENT, INC.,
a Delaware corporation
AIMCO-GP, INC.,
a Delaware corporation
NHPMN-GP, INC.
a Delaware corporation
By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
AIMCO IPLP, L.P., a Delaware limited partnership
		
	By:
	AIMCO/IPT, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer

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AIMCO HOLDINGS, L.P., a Delaware limited partnership
		
	By:
	AIMCO Holdings QRS, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
AMBASSADOR CRM FLORIDA PARTNERS LIMITED PARTNERSHIP, a Delaware limited partnership
		
	By:
	Ambassador Florida Partners Limited Partnership,

a Delaware limited partnership, its General Partner
		
	By:
	Ambassador Florida Partners, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer

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AMBASSADOR APARTMENTS, L.P., a Delaware limited partnership
		
	By:
	AIMCO QRS GP, LLC, a Delaware limited liability company, its General Partner

		
	By:
	AIMCO Properties, L.P., a Delaware limited partnership, its Member

		
	By:
	AIMCO-GP, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
LAC PROPERTIES OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
		
	By:
	AIMCO GP LA, L.P., a Delaware limited partnership, its General Partner

		
	By:
	AIMCO-GP, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
GP-OP PROPERTY MANAGEMENT, LLC, a Delaware limited liability company
		
	By:
	AIMCO Properties, L.P., a Delaware limited partnership, its Member

		
	By:
	AIMCO-GP, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer

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NHPMN MANAGEMENT, L.P., a Delaware limited partnership
		
	By:
	NHPMN-GP, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
NHPMN MANAGEMENT, LLC, a Delaware limited liability company
		
	By:
	AIMCO/Bethesda Holdings, Inc., a Delaware corporation, its General Manager

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
OP PROPERTY MANAGEMENT, L.P., a Delaware limited partnership
		
	By:
	NHPMN-GP, Inc., a Delaware corporation, its Managing General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
OP PROPERTY MANAGEMENT, LLC, a Delaware limited liability company
		
	By:
	AIMCO Properties, L.P., a Delaware limited partnership, its General Manager

		
	By:
	AIMCO-GP, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer

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LAC PROPERTIES GP I LIMITED PARTNERSHIP, a Delaware limited partnership
		
	By:
	LAC Properties GP I LLC, a Delaware limited liability company, its General Partner

		
	By:
	LAC Properties Operating Partnership, L.P., a Delaware limited partnership, its Managing Member

		
	By:
	AIMCO GP LA, L.P., a Delaware limited partnership, its General Partner

		
	By:
	AIMCO-GP, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
LAC PROPERTIES GP II LIMITED PARTNERSHIP, a Delaware limited partnership
		
	By:
	LAC Properties QRS II Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer
AIMCO SELECT PROPERTIES, L.P., a Delaware limited partnership
		
	By:
	AIMCO/Bethesda Holdings, Inc., a Delaware corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding

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Title: Executive Vice President and Treasurer
THE NATIONAL HOUSING PARTNERSHIP, a District of Columbia limited partnership
		
	By:
	National Corporation for Housing Partnerships, a District of Columbia corporation, its General Partner

By:    /s/ Patti K. Fielding    
Name: Patti K. Fielding
Title: Executive Vice President and Treasurer

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LENDERS:
KEYBANK NATIONAL ASSOCIATION, as Agent and as a Lender
By:    /s/ Kathleen M. Ahern                
Name:  Kathleen M. Ahern 
Title:  Senior Banker
WELLS FARGO BANK, N.A., as Syndication Agent and as a Lender
By:    /s/ Carl Skanderup                
Name:  Carl Skanderup 
Title:  Vice President
BANK OF AMERICA, N.A., as Co-Documentation Agent, an L/C Issuer and as a Lender
By:    /s/ James P. Johnson                
Name:  James P. Johnson
Title:  Senior Vice President
REGIONS BANK, as Co-Documentation Agent and as a Lender
By:    /s/ Kevin W. Murry                
Name:  Kevin W. Murry 
Title:  Director
CITIBANK, N.A., as a Lender
By:    /s/ John C. Rowland                
Name:  John C. Rowland
Title:  Vice President

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PNC BANK, NATIONAL ASSOCIATION, as a Lender
By:    /s/ Corey Focke                    
Name:  Corey Focke 
Title:  Vice President
HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender
By:    /s/ Timothy J. Mertens                
Name:  Timothy J. Mertens
Title:  Vice President
MORGAN STANLEY BANK, N.A, as a Lender
By:    /s/ Nick Zangari                    
Name:  Nick Zangari
Title:  Authorized Signatory
THE HUNTINGTON NATIONAL BANK, a national banking association, as a Lender
By:    /s/ Arthur N. DePompei                
Name:  Arthur N. DePompei 
Title:  Vice President
RAYMOND JAMES BANK, N.A., as a Lender
By:    /s/ Thomas G. Scott                
Name:  Thomas G. Scott 
Title:  Senior Vice President

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