Document:

Unassociated Document

EXHIBIT 10.118

 

FIRST AMENDMENT TO CONSTRUCTION,

 

ACQUISITION AND INTERIM LOAN AGREEMENT

 

AND TO LIMITED PAYMENT AND PERFORMANCE GUARANTY

 

This First Amendment to Construction, Acquisition and Interim Loan Agreement and to Limited Payment and Performance Guaranty (this “Amendment”) is made as of May 14, 2010 (the “Amendment Effective Date”) by and among KEYBANK NATIONAL ASSOCIATION, a national banking association for itself and as Administrative Agent for the Lenders (as such capitalized terms, and any other capitalized terms used in this Amendment and not otherwise defined, are defined in the Loan Agreement described below), KIERLAND CROSSING, LLC, a Delaware limited liability company (“Borrower”), GLIMCHER PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership (“Guarantor”) and the financial institutions which are signatories hereto (together with KeyBank National Association in its individual capacity, collectively the “Lenders”).

 

RECITALS

 

WHEREAS, the Administrative Agent, the Lenders and the Borrower entered into that certain Construction, Acquisition and Interim Loan Agreement dated as of November 30, 2007 (the “Loan Agreement”);

 

WHEREAS, in connection with, and to induce the Lenders to enter into, the Loan Agreement, Guarantor has, among other things, executed and delivered that certain Limited Payment and Performance Guaranty dated as of November 30, 2007 for the benefit of the Lenders with respect to the obligations of Borrower under the Loan Agreement and the other Loan Documents (the “Payment Guaranty”);

 

WHEREAS, Borrower and Guarantor have requested that the Administrative Agent and the Lenders agree to make certain modifications to the Loan Agreement;

 

WHEREAS, the Administrative Agent and the Lenders are willing to make such modifications provided that certain other modifications to the Loan Agreement and the Payment Guaranty are also made;

 

NOW THEREFORE in consideration of the foregoing and the mutual covenants agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Amendment Effective Date. This Amendment shall become effective upon the Amendment Effective Date, which is the date on which all of the following conditions shall have been satisfied: (i) this Amendment has been executed by all of the parties hereto and delivered to the Administrative Agent; (ii)  Borrower has paid to the Administrative Agent all fees due under that certain fee letter between Borrower and Administrative Agent dated as of March 13, 2010; (iii) Borrower shall have established the cash collateral account described in Section 7 below and deposited with the Administrative Agent the amount required to be deposited therein pursuant to such Section 7; and (iv) Borrower shall have executed and delivered to the Administrative Agent the Account Pledge Agreement required under Section 8 below.

 

2. Changes to Defined Terms. Section 1 of the Loan Agreement, along with the Recitals thereto, shall be amended, as of the Amendment Effective Date, by deleting the existing definitions of “Actual DSCR”, “Alternate Base Rate”, “Applicable Margin”, “Borrower’s Equity Requirement”, “Implied Annual Debt Service”, “Loan Commitment”, “Phase I”, “Phase II”, “Pro Forma DSCR” and “Pro Forma NOI” in their entirety and replacing them with the following:

 

  

  

  

 

“Actual DSCR” means, as of any date, the ratio of (a) the aggregate actual NOI of the Project for the most recent period of twelve (12) consecutive calendar months for which NOI of the Project has been reported to the Administrative Agent to (b) the then-current Implied Annual Debt Service using a Maximum Loan Amount equal to the then-current Loan Commitment, as it may have been reduced pursuant to a permanent reduction elected by Borrower under Section 2.1(a) below.

 

“Alternate Base Rate” means, as of any date of determination, the rate per annum equal to the sum of the then-current Applicable Margin with respect to Alternate Base Rate Loans plus the highest of (i) the Prime Rate in effect on such date, (ii) the Federal Funds Effective Rate in effect on such date plus one-half of 1% (50 basis points) and (iii) the sum of the LIBOR Base Rate that would apply to a one month LIBOR Period beginning on such date plus (A) two percent (2.00%) if such date is any date from the “Amendment Effective Date” (as defined in the First Amendment to this Agreement) through and including May 30, 2011, (B) one and one-half percent (1.50%) if such date is any date after May 30, 2011 through and including May 29, 2012 or (C) two and one-half percent (2.50%) if such date is after May 29, 2012.

 

“Applicable Margin” means (i) with respect to LIBOR Rate Loans, (A) two percent (2.00%) at all times from the Amendment Effective Date through and including May 30, 2011, (B) two and one-half percent (2.50%) at all times from May 30, 2011 through and including May 29, 2012 and (C) three and one-half percent (3.50%) at all times after May 29, 2012; and (ii) with respect to Alternate Base Rate Loans, (A) zero at all times from the Amendment Effective Date through and including May 30, 2011, and (B) one percent (1%) at all times after May 29, 2011.

 

“Borrower’s Equity Requirement” means, as of any date, an amount equal to the difference between the aggregate projected Project Costs as shown in the then-current approved Budget and the then-current Maximum Loan Amount, without regard to any portion of the Loan Commitment that is not yet available for borrowing due to the requirements of Section 2.1(a) below. The Borrower’s Equity Requirement shall be invested as follows: (i) the initial portion of the Borrower’s Equity Requirement, equal to $48,391,697.66, was invested by Borrower prior to December 31, 2009, (ii) the next $20,000,000.00 of the Borrower’s Equity Requirement (the “Interim Equity Requirement”) shall be invested by Borrower’s funding of $16,227,243.84 prior to the Amendment Effective Date and by Borrower’s investment through the payment of 100% of Project Costs payable from and after the Amendment Effective Date until an additional $3,772,756.16 has been fully invested; and (iii) the remaining unfunded balance of the Borrower’s Equity Requirement, currently projected to be $68,937,556.34 based on a Maximum Loan Amount of $150,000,000, shall be invested (A) beginning after such Interim Equity Requirement has been fully invested, through the payment by Borrower of 50% of all Project Costs in the First Amendment Budget, on a pro rata basis with each additional disbursement of the Loan which shall fund 50% of the Project Costs in the First Amendment Budget (the “Equity/Loan Funding Ratio”) until the then-current Maximum Loan Amount has been fully funded (including any increases in the Maximum Loan Amount above $150,000,000 which take effect prior to such date on which the then-current Maximum Loan Amount has been fully funded), provided that, if the portion of any payment of such Project Costs allocable to the Budget line items identified as “Hard Costs”, “Tenant Allowances”, “Leasing Commissions”, “Architectural”, “Engineering”, “Quality Control” and “Permits/Fees”, in the aggregate, is less than 50% of the total amount of such payment, then the percentage of such payment funded from the Loan shall be reduced to such lesser percentage and Borrower’s percentage of such payment shall be increased accordingly, and (B) thereafter, through the payment by Borrower of 100% of all Project Costs.  To the extent the Project Costs increase in excess of those provided for in the First Amendment Budget, Borrower shall pay 100% of all Project Costs not covered by the First Amendment Budget prior to any further disbursements of the Loan.  Notwithstanding the foregoing, if the aggregate amount invested by Borrower to pay Project Costs which are covered by the First Amendment Budget (but excluding any amounts which are paid by Borrower for Project Costs in excess of those covered by the First Amendment Budget) does not equal or exceed (i) on June 30, 2010, the amount of (A) $77,000,000 minus (B) the aggregate increase, if any, in the Maximum Loan Amount over $150,000,000 prior to such date, (ii) on December 31, 2010 the amount of (A) $98,000,000 minus (B) the aggregate increase, if any, in the Maximum Loan Amount over $150,000,000 prior to such date; (iii) on May 29, 2011, the amount of (A) $117,329,254 minus (B) the aggregate increase, if any, in the Maximum Loan Amount over $150,000,000 prior to such date; or (iv) on the date of the acquisition of the Phase III Retail Unit, immediately following the payment of the purchase price therefor, 100% of Borrower’s Equity Requirement, then, in any such case, the amount by which any such aggregate amount invested by Borrower is less than the corresponding required amount on the applicable date (an “Underfunded Equity Amount”) shall be deposited in cash on such date by Borrower with the Administrative Agent.  Each Underfunded Equity Amount so deposited shall thereafter be disbursed in its entirety to pay Project Costs as needed before the Lenders are obligated to fund any further Advances to pay Project Costs, notwithstanding anything else in this definition to the contrary.  If any increase in the Maximum Loan Amount becomes effective after the then-current Maximum Loan Amount has been fully funded and Borrower has commenced to pay 100% of Project Costs from Borrower’s Equity Requirement, shared payments of Project Costs from Borrower’s Equity Requirement and from the Loan shall be reinstated in accordance with the Equity/Loan Funding Ratio unless the undisbursed portion of the Maximum Loan Amount represents more than fifty percent (50%) of the projected Project Costs then remaining to be paid, in which event the percentage of such Project Costs then remaining to be paid from disbursements of the Loan shall be increased to such higher percentage and the percentage to be paid from Borrower’s Equity Requirement shall be correspondingly decreased.  Additional disbursements of the Loan shall be used to reimburse Borrower for previously invested portions of Borrower’s Equity Requirement, if all Project Costs for Phase I and Phase II have been paid in full and the sum of the increased Maximum Loan Amount and the previously invested Borrower’s Equity Requirement exceeds the aggregate Project Costs actually incurred.

 

  

2

  

 

“First Amendment Budget” means the budget attached as Exhibit G to the First Amendment to Construction, Acquisition and Interim Loan Agreement and to Limited Payment and Performance Guaranty dated May 14, 2010, without regard to any subsequent increases in the amount of Project Costs.

 

“Implied Annual Debt Service” means, as of any date for purposes of calculating compliance with a condition hereunder referencing either Actual DSCR or Pro Forma DSCR, the aggregate annual amount of principal and interest payments that would be needed to fully amortize the applicable amount specified in such condition by equal monthly payments of principal and interest over a 30-year period, using an interest rate equal to the greater of (i) the sum of (A) the then-current annual yield on obligations of the United States of America Treasury maturing approximately 10 years after such date plus (B) 2.00% per annum or (ii) 6.85% per annum.

 

“Loan Commitment” means $220,000,000, subject to reduction at the option of Borrower as provided in Section 2.1(a) below.  The respective Percentages of the Lenders with respect to the Loan Commitment are set forth in Schedule 1.1.

 

“Phase I” means the first phase of the Project which is planned to include approximately 252,000 square feet of retail space and office space and two parking decks providing in the aggregate not less than 2,350 parking spaces.

 

“Phase II” means the second phase of the Project which is planned to include approximately 278,000 square feet of retail space (including the theater) and office space.

 

“Pro Forma DSCR” means, as of any date, the ratio of (A) the then-current Pro Forma NOI  to (B) the then-current Implied Annual Debt Service using the then-current Maximum Loan Amount using (i) in the case of the initial determination of the Maximum Loan Amount on the Amendment Effective Date, the greatest Maximum Loan Amount that will not cause the Pro Forma DSCR to exceed 1.25 to 1.0, or, (ii) in the case of qualification for the First Extension Option under Section 2.6, the then-current Maximum Loan Amount.

 

  

3

  

 

“Pro Forma NOI” means, as of any date of determination, (a) an annualized pro forma amount of scheduled income (rental and reimbursement) under Leases of either (i) only Phase I and Phase II of the Project, if Borrower has not previously acquired the Phase III Retail Unit pursuant to the Phase III Purchase Agreement as of such date of determination or (ii) any portion of the Project after Borrower has so acquired the Phase III Retail Unit, which have been executed on or before such date of determination and the Tenants under which are projected to take occupancy and commence paying rent under such Leases at any time prior to the First Extended Maturity Date, annualizing the amount of such scheduled income for any Tenant not in occupancy and paying rent as of the first day of the First Extension Option period, provided however, if any such Tenant (or the direct or indirect holder of a majority of the ownership interests in such Tenant) is in bankruptcy as of such date of determination then such revenues shall be excluded from revenues for purposes of this clause (a), minus (b) all Pro Forma Operating Expenses. Notwithstanding the foregoing, solely for purposes of the initial determination of the Maximum Loan Amount as of the Amendment Effective Date, instead of using such definition of Pro Forma NOI in calculating Pro Forma DSCR in such instance, the parties agree to use the projected NOI of the Project at Stabilization as contained in the most recent Appraisal of the Project prior to the Amendment Effective Date approved by the Administrative Agent.

 

3. New Defined Term.  The following new defined term is added to Section 1 of the Loan Agreement as of the Amendment Effective Date:

 

“In-Place DSCR” means, as of any date, for purposes of qualifying for an increase in the Maximum Loan Amount under Section 2.1(a), the ratio of (A) an amount equal to (i) the annual average scheduled income (rental and reimbursement) over the terms of those Leases of the Project which have been executed on or before such date of determination and the Tenants under which are projected to take occupancy and commence paying rent under such Leases at any time prior to a date twelve (12) months after such date of determination, provided, however, that if any such Tenant (or the direct or indirect holder of a majority of the ownership interests in such Tenant) is in bankruptcy as of such date of determination then such revenues shall be excluded from revenues for purposes of this clause minus (ii) one year of Pro Forma Operating Expenses to (B) the then-current Implied Annual Debt Service using the Maximum Loan Amount which Borrower is seeking to achieve.”

 

4. Maximum Loan Amount. Subsections (a) and (b) of Section 2.1 of the Loan Agreement shall be amended as of the Amendment Effective Date by deleting the existing Subsections 2.1(a) and 2.1(b) in their entirety and replacing them with the following:

 

“(a) The maximum aggregate amount of all Loans to be made hereunder (the “Maximum Loan Amount”) as of the Amendment Effective Date shall be $150,000,000, being the lowest of (A) $150,000,000, (B) eighty percent (80%) of the projected value of the Project on Stabilization based on the most recent Appraisal of the Project prior to the Amendment Effective Date approved by the Administrative Agent or (C) the largest Maximum Loan Amount that will produce a Pro Forma DSCR of 1.25 to 1.0. The Maximum Loan Amount shall be subject to increase from time to time thereafter to the following amounts within five (5) Business Days after an updated Appraisal of the Project has been obtained upon request of Borrower and approved by the Administrative Agent and the Borrower has submitted to the Administrative Agent a certificate and such supporting documentation as the Administrative Agent may reasonably require to evidence that the following conditions have been achieved:

 

  

4

  

 

(i) a Maximum Loan Amount of up to $165,000,000 as selected by Borrower provided that (A) Tenants have either accepted possession of their demised premises for purposes of installing tenant improvements therein or taken occupancy of such demised premises for business purposes under their Leases (which Leases have been approved by the Administrative Agent to the extent required hereunder) at rental rates which would provide for an In-Place DSCR of at least 1.25 to 1.0 using such increased Maximum Loan Amount, (B) such updated Appraisal indicates a projected value of the Project at Stabilization sufficient to cause such increased Maximum Loan Amount to be seventy-five percent (75%) or less of such projected value and (C) if the Phase III Retail Unit has not previously been acquired by Borrower pursuant to the Phase III Purchase Agreement, the projected value indicated in such Appraisal for Phase I and Phase II of the Project alone at Stabilization is sufficient to cause such increased Maximum Loan Amount to be ninety percent (90%) or less of such projected value of Phase I and Phase II only;

 

(ii)  a Maximum Loan Amount of up to $175,000,000 as selected by Borrower provided that (A) Tenants have either accepted possession of their demised premises for purposes of installing tenant improvements therein or taken occupancy of such demised premises for business purposes under their Leases for 85% or more of the total gross leaseable area of the Project (which Leases have been approved by the Administrative Agent to the extent required hereunder) at rental rates which would provide for an In-Place DSCR of at least 1.25 to 1.0 using such increased Maximum Loan Amount, (B) all such Tenants in occupancy with rent payments due under their respective Leases have commenced paying such rent, (C) such updated Appraisal indicates a projected value of the Project at Stabilization sufficient to cause such increased Maximum Loan Amount to be seventy-five percent (75%) or less of such projected value and (D) if the Phase III Retail Unit has not previously been acquired by Borrower pursuant to the Phase III Purchase Agreement, the projected value indicated in such updated Appraisal for Phase I and Phase II of the Project alone at Stabilization is sufficient to cause such increased Maximum Loan Amount to be eighty percent (80%) or less of such projected value of Phase I and Phase II only;

 

(iii)  a Maximum Loan Amount of $185,000,000 provided that (A) Tenants have either accepted possession of their demised premises for purposes of installing tenant improvements therein or taken occupancy of such demised premises for business purposes under their Leases for 90% or more of the total gross leaseable area of the Project (which Leases have been approved by the Administrative Agent to the extent required hereunder) at rental rates which would provide for an In-Place DSCR of at least 1.25 to 1.0 using a Maximum Loan Amount of $185,000,000, (B) all such Tenants in occupancy with rent payments due under their respective Leases have commenced paying such rent, (C) such updated Appraisal indicates a projected value of the Project at Stabilization sufficient to cause such increased Maximum Loan Amount to be seventy-five percent (75%) or less of such projected value and (D) if the Phase III Retail Unit has not previously been acquired by Borrower pursuant to the Phase III Purchase Agreement, the projected value indicated in such updated Appraisal for Phase I and Phase II of the Project alone at Stabilization is sufficient to cause such increased Maximum Loan Amount to be eighty percent (80%) or less of such projected value of Phase I and Phase II only; and

 

(iv)  a Maximum Loan Amount of $220,000,000 provided that (A) Tenants have either accepted possession of their demised premises for purposes of installing tenant improvements therein or taken occupancy of such demised premises for business purposes under their Leases for 90% or more of the total gross leaseable area of the Project (which Leases have been approved by the Administrative Agent to the extent required hereunder) at rental rates which have generated an Actual DSCR of at least 1.25 to 1.0 using a Maximum Loan Amount of $220,000,000, (B) all such Tenants in occupancy with rent payments due under their respective Leases have commenced paying such rent, (C) such updated Appraisal indicates a then-current “as-is” value of the Project sufficient to cause such increased Maximum Loan Amount to be seventy-five percent (75%) or less of such then-current “as-is” value and (D) if the Phase III Retail Unit has not previously been acquired by Borrower pursuant to the Phase III Purchase Agreement, the projected value indicated in such updated Appraisal for Phase I and Phase II of the Project alone at Stabilization is sufficient to cause such increased Maximum Loan Amount to be eighty percent (80%) or less of such projected value of Phase I and Phase II only.

 

  

5

  

 

Notwithstanding the foregoing, the Maximum Loan Amount is subject to reduction if at any time on or after May 29, 2011 the Administrative Agent obtains and approves an Appraisal (other than one of the Appraisals obtained in connection with the increases in the Maximum Loan Amount under this Section 2.1(a) or the extensions of the Maturity Date under Section 2.6) which indicates a reduction in the value of the Project from the value established in the immediately preceding Appraisal.  If such most recent Appraisal is obtained and approved prior to the First Extended Maturity Date, the Maximum Loan Amount shall be reduced to the lower of (A) seventy-five percent (75%) of the projected value of the Project on Stabilization established by such subsequent Appraisal or (B) the largest Maximum Loan Amount that will produce a Pro Forma DSCR of 1.25 to 1.0, based on the expenses projected in such subsequent Appraisal.  If such most recent Appraisal is obtained and approved on or after the First Extended Maturity Date, the Maximum Loan Amount shall be reduced to the lower of (A) seventy-five percent (75%) of the “as-is” value of the Project established by such subsequent Appraisal or (B) the largest Maximum Loan Amount that will produce an Actual DSCR of 1.25 to 1.0, based on actual expenses.  Any subsequent increase in the Maximum Loan Amount after such a reduction shall be permitted only if and when Borrower requests and qualifies for an increase in the Maximum Loan Amount in accordance with clauses (i), (ii), (iii) or (iv) of this Section 2.1(a).

 

Borrower shall have the right at any time on not less than five (5) Business Days prior written notice to the Administrative Agent to elect to permanently reduce the Loan Commitment from $220,000,000 to such lesser amount as Borrower may specify in such notice. Notwithstanding anything else to the contrary in this Section 2.1(a), if Borrower so exercises its right to permanently reduce the Loan Commitment, (i) if the Maximum Loan Amount in effect at the time of such reduction exceeds the reduced Loan Commitment so specified, the Maximum Loan Amount shall be automatically reduced to such reduced Loan Commitment amount and (ii) the Maximum Loan Amount may not be thereafter increased beyond such reduced Loan Commitment amount. Any such reduction in the Loan Commitment shall reduce the Commitments of the Lenders on a pro rata basis and, if the Outstanding Loan Amount is in excess of such reduced Loan Commitment, such reduction shall be conditioned upon Borrower repaying a sufficient amount of Loans to reduce the Outstanding Loan Amount to an amount equal to or less than the proposed reduced Loan Commitment.  Borrower may not elect to make any such reduction in the Loan Commitment which would cause any increase in the Borrower’s Equity Requirement.

 

(b)           After the initial disbursement at Loan Opening Borrower shall be entitled to receive successive monthly disbursements of the Loan in accordance with Articles 6, 7, 10 and 11, except during such periods as Project Costs are required to be paid 100% from Borrower’s Equity Requirement as provided in the definition of such term, provided that (i) the Loan remains In Balance, (ii) Borrower has funded, or shall simultaneously fund, a portion of the Project Costs then due in accordance with the Equity/Loan Funding Ratio and the definition of “Borrower’s Equity Requirement”, (iii) Borrower has complied with all conditions precedent to disbursement from time to time including the requirements of Articles 6, 7, 10 and 11, and (iv) no Default or Event of Default exists hereunder.

 

5. Extension of Maturity Date.  Section 2.6 of the Loan Agreement shall be amended as of the Amendment Effective Date by (i) deleting Subsection (d) thereof and replacing it with the following:

 

  

6

  

 

“(d)  As of the date of Borrower’s delivery of notice of its intent to exercise the First Extension Option and as of the initial Maturity Date, (A) the Pro Forma DSCR is not less than 1.10 to 1.0, and (B) the then-current Maximum Loan Amount does not exceed seventy-five percent (75%) of the projected value of the Project at Stabilization based on an Appraisal of the Project approved by the Administrative Agent (which Appraisal may be the most recent Appraisal obtained so long as such Appraisal is dated not more than nine (9) months prior to the initial Maturity Date), provided however that if as of the date of delivery of such notice the Pro Forma DSCR is less than 1.10 to 1.0 or if the percentage of such projected value of the Project at Stabilization established by such Appraisal represented by the then-current Maximum Loan Amount is greater than 75%, then on the initial Maturity Date the Maximum Loan Amount shall be deemed to be reduced to the extent necessary so that both of such criteria are satisfied and, if necessary, on or before the initial Maturity Date, Borrower shall have repaid Advances sufficient to reduce the Outstanding Loan Amount to an amount equal to or less than such reduced Maximum Loan Amount (provided that Borrower may reduce the unfunded Commitments only to the extent such reduction would not cause any increase in the Borrower’s Equity Requirement.)  In addition, not later than the initial Maturity Date, Borrower shall have purchased, paid for and collaterally assigned to the Administrative Agent for the benefit of the Lenders an interest rate cap from a counterparty which is a Lender or another financial institution approved by the Administrative Agent pursuant to an interest rate cap agreement reasonably acceptable to the Administrative Agent providing Borrower with a cap on a notional amount equal to the Maximum Loan Amount in effect on the initial Maturity Date  for the full twelve (12) months of the First Extension Option period at an interest rate equal to or less than the highest LIBOR Base Rate that would not cause (after adding thereto the Applicable LIBOR Margin to be in effect during such period) the ratio of (A) the projected annualized NOI of the Project for the First Extension Option period as approved by the Administrative Agent based on the assumptions (i) that any Tenant in occupancy of its demised premises as of the first day of the First Extension Option period shall pay rent at its initial agreed rate for such entire period, notwithstanding that such rent payments may not actually commence until later, and (ii) that the operating expenditures for such period shall be the projected expenses as established by the most recent Appraisal to (B) the aggregate interest expense that would be incurred hereunder on such notional amount during the First Extension Option Period, assuming interest accrues at the LIBOR Rate in a series of twelve (12) one-month LIBOR Interest Periods, to be less than the ratio of 1.00 to 1.0.”

 

and (ii) deleting Subsection (e) thereof and replacing it with the following:

 

“(e)  As of the date of Borrower’s delivery of notice of its intent to exercise the Second Extension Option and as of the First Extended Maturity Date, (A) the Actual DSCR is not less than 1.25 to 1.00 and (B) the Outstanding Loan Amount does not exceed seventy-five percent (75%) of the then-current value of the Project based on an Appraisal of the Project on an “as is” basis approved by the Administrative Agent, or if the Actual DSCR is less than 1.25 to 1.0, or the percentage of such value of the Project established by the Appraisal represented by the Outstanding Loan Amount is greater than 75% as of the date of delivery of such notice, then not later than the First Extended Maturity Date Borrower shall have made sufficient repayments of the Loans so that both of such criteria are satisfied.  Notwithstanding anything herein to the contrary, no increase in the Outstanding Loan Amount shall be permitted after the First Extended Maturity Date unless both of such criteria continue to be satisfied after giving effect to such increase in the Outstanding Loan Amount.  In addition, not later than the First Extended Maturity Date, Borrower shall have purchased, paid for and collaterally assigned to the Administrative Agent for the benefit of the Lenders an interest rate cap from a counterparty which is a Lender or another financial institution approved by the Administrative Agent pursuant to an interest rate cap agreement reasonably acceptable to the Administrative Agent providing Borrower with a cap on a notional amount equal to the Maximum Loan Amount in effect on the First Extended Maturity Date for the full twelve (12) months of the Second Extension Option period at an interest rate equal to or less than the highest LIBOR Base Rate that would not cause (after adding thereto the Applicable LIBOR Margin in effect during such period) the ratio of (A) the projected annualized NOI of the Project for the Second Extension Option period, as approved by the Administrative Agent based on the assumptions (i) that any Tenant in occupancy of its demised premises as of the first day of the Second Extension Option period shall pay rent at its initial agreed rate for such entire period notwithstanding that such rent payments may not actually commence until later and (ii) that the operating expenditures for such period shall be the projected expenses established by the most recent Appraisal, to (B) the aggregate interest expense that would be incurred hereunder on such notional amount during the Second Extension Option period, assuming interest accrues at the LIBOR Rate in a series of twelve (12) one-month LIBOR Interest Periods, to be less than the ratio of 1.25 to 1.0.”

 

  

7

  

 

6. Mandatory Principal Payments. Section 3.1 of the Loan Agreement shall be amended as of the Amendment Effective Date by adding the following new subsection (f) at the end thereof:

 

“(f) In the event any Appraisal delivered and approved by the Administrative Agent after the Amendment Effective Date results in a reduction in the then-current Maximum Loan Amount below the then-current Outstanding Loan Amount, a principal payment on the Loans equal to the excess of the Outstanding Loan Amount over such reduced Maximum Loan Amount shall be due and payable within five (5) Business Days after Borrower receives written notice from the Administrative Agent including a copy of such Appraisal and calculations of the reduced Maximum Loan Amount evidencing the required amount of such principal payment.”

 

7. Deposit For Taxes and Insurance Premiums. Section 12.1 of the Loan Agreement shall be amended as of the Amendment Effective Date by adding the following sentences at the end thereof:

 

“To secure Borrower’s obligations under the preceding sentence to pay taxes, assessments and governmental charges or levies with respect to the Project and Borrower’s obligations under Section 12.4 below to pay insurance premiums with respect to the Project, as well as to secure payment of all of the other Obligations, Borrower has deposited the amount of $1,476,631, being the Administrative Agent’s estimate of the initial aggregate annual amount of such taxes, assessments and governmental charges or levies and of insurance premiums payable under Section 12.4 below for the first twelve (12) months after Stabilization based on the projected expenses provided in the most recent Appraisal, in a cash collateral account to be established in Borrower’s name with Administrative Agent. Borrower hereby grants a security interest in favor of the Administrative Agent for the benefit of the Lenders in such account. Such account shall be established and such initial deposit shall be made on the Amendment Effective Date.  Borrower further agrees to make additional deposits into such cash collateral account as the Administrative Agent may from time to time require within five (5) Business Days after written request therefor so that such account shall be maintained through the Maturity Date in an amount equal to the projected aggregate annual amount of such taxes, assessments and governmental charges or levies and insurance premiums coming due from time to time thereafter. The amounts so deposited in such cash collateral account shall be held as security for the Loan and shall not be made available to Borrower for payment of such taxes and other charges or such insurance premiums.”

 

8. Lockbox Account.  Article 12 of the Loan Agreement shall be amended as of the Amendment Effective Date by adding the following additional Section at the end thereof:

 

“12.18  Account Pledge Agreement.  Borrower shall execute and deliver to the Administrative Agent on the Amendment Effective Date an Account Pledge, Control and Security Agreement in the form of Exhibit J attached hereto and made a part hereof (the “Account Pledge Agreement”) related to the “Lockbox Account” described therein previously established with KeyBank National Association.  As provided in the Account Pledge Agreement, Borrower shall direct all Tenants at the Project to remit rents and other payments due under the Leases to such “Lockbox Account” and such receipts shall be made available to Borrower from time to time unless an Event of Default shall have occurred and be continuing.”

 

9. Appraisals.  Section 15.2 of the Loan Agreement shall be amended as of the Amendment Effective Date by deleting the existing Section 15.2 in its entirety and replacing it with the following:

 

  

8

  

 

“15.2           Appraisals.  The Administrative Agent shall have the right to obtain new or updated Appraisals of the Project from time to time, provided that the Administrative Agent and the Lenders agree that any such new or updated Appraisal (other than the Appraisals expressly specifically required under this Agreement to be obtained as a condition to an increase in the Maximum Loan Amount under Section 2.1(a) hereof or as a condition to any extension of the Maturity Date under Section 2.6 hereof) shall not give rise to any adjustment to the Maximum Loan Amount until after May 29, 2011, as provided in Section 2.1(a).  Borrower shall reasonably cooperate with Administrative Agent in this regard.  If the Appraisal is obtained to obtain such an increase in the Maximum Loan Amount or such an extension of the Maturity Date or to comply with this Agreement or any Applicable Law or regulatory requirement, or bank policy promulgated to comply therewith, or if an Event of Default exists, Borrower shall pay for any such Appraisal upon Administrative Agent’s request; provided, however, that absent an Event of Default, Borrower shall not be required to pay for any new or updated Appraisals of the Project (other than those Appraisals being obtained to so increase the Maximum Loan Amount or extend the Maturity Date) more than one time per calendar year.  Nothing herein shall preclude any Lender from obtaining appraisals of the Project at its own expense from time to time as needed to comply with any Applicable Law or regulatory requirement, or bank policy promulgated to comply therewith, but no such appraisal shall have any effect on the Maximum Loan Amount or the Loan Commitment.”

 

10. Events of Default.  Section 16.1 of the Loan Agreement shall be amended as of the Amendment Effective Date by deleting existing Subsection 16.1(l) in its entirety and replacing it with the following:

 

“(l) Either (i) the existence of an “Event of Default” (as defined in the Unsecured Credit Agreement) under Sections 7.1, 7.2, 7.3 or 7.5 of the Unsecured Credit Agreement  (but, with respect to Sections 7.3 and 7.5 only if such “Event of Default” is due to a breach of one or more of Sections 6.11, 6.17, 6.18(iv) and 6.18(v) thereof) or (ii) the acceleration of the sums due pursuant to the Unsecured Credit Agreement or any promissory notes evidencing the credit facility created by the Unsecured Credit Agreement as a result of any other “Event of Default” under the Unsecured Credit Agreement, provided however that if the Unsecured Credit Agreement shall be terminated and shall no longer be binding upon the Guarantor, an Event of Default hereunder shall still be deemed to occur hereunder if any event or condition occurs which (x) would have constituted either such an “Event of Default” under the Unsecured Credit Agreement for purposes of clause (i) or (y) could, with the giving of any notice and expiration of any cure period, have given rise to an acceleration under the Unsecured Credit Agreement if the Unsecured Credit Agreement had not been terminated; or”

 

11. Amendments.  Subsection (a) of Section 19.1 of the Loan Agreement shall be amended by adding the following parenthetical at the end thereof:  “(it being understood and agreed that only the approval of the Requisite Lenders shall be required for any modification that increases the rate of interest or the amount of fees payable by Borrower hereunder)”.

 

12. Amendments to Guaranty. Guarantor hereby agrees that, as of the Agreement Effective Date, the Payment Guaranty shall be amended as follows:

 

(a) The second grammatical paragraph of Paragraph 1 of the Payment Guaranty shall be deleted and replaced with the following:

 

  

9

  

 

“Notwithstanding the foregoing, Guarantor’s aggregate liability remaining hereunder as of any date with respect to the principal of the Notes as described in subparagraph (a) of this Paragraph 1 shall in no event exceed the amount obtained by multiplying the then-current Guaranteed Percentage by the then-current Maximum Loan Amount (as it may have been increased or decreased in accordance with Section 2.1(a) of the Loan Agreement) (the “Guaranteed Amount”).  Such limitation to the Guaranteed Percentage of the principal of the Notes shall not apply to interest, fees or any other amounts which comprise the Facility Indebtedness or to the Enforcement Costs, liability for which shall not be limited hereunder.  The term “Guaranteed Percentage” as used in this Paragraph 1 shall initially be fifty percent (50%), subject to subsequent increase (the “Failed Phase III Increase”) on May 29, 2012, by adding twenty percent (20%) to the then-current Guaranteed Percentage (so that the Guaranteed Percentage will be increased to 70%,) if on or before May 29, 2012 the Phase III Retail Unit has not been substantially completed by the Phase III Developer and conveyed to the Borrower in accordance with the terms of the Phase III Purchase Agreement. Notwithstanding the foregoing, so long as no Event of Default has occurred and is then continuing, the Failed Phase III Increase shall not take effect, or if it does take effect, the Failed Phase III Increase shall be eliminated and reversed, if (x) Borrower purchases the Phase III Retail Unit after May 29, 2012 and obtains a new Appraisal of the Project demonstrating that the Outstanding Loan Amount does not exceed seventy-five percent (75%) of the “as is” value of the Project as established by an Appraisal at such time or (y) Borrower repays a sufficient portion of the Outstanding Loan Amount so that the Outstanding Loan Amount is not more than seventy-five percent (75%) of the “as-is” value of Phases I and II of the Project as established by an Appraisal at such time or (z) Borrower delivers to the Administrative Agent additional collateral for the Facility in the form of an unconditional, irrevocable letter of credit issued by a bank acceptable to the Administrative Agent in a form acceptable to the Administrative Agent for an amount sufficient, when added to such then-current “as-is” appraised value of Phases I and II of the Project, to cause the Outstanding Loan Amount to be seventy-five percent (75%) or less of the combined face amount of such letter of credit and such then-current “as-is” appraised value of Phases I and II of the Project.  In no event shall the Guaranteed Amount be reduced as a result of (i) principal payments made by Borrower, Guarantor or any other party with respect to the Facility Indebtedness unless and until the Facility has been fully disbursed and Phases I and II of the Project have been Substantially Completed and such principal payments have caused the remaining Outstanding Loan Amount to be less than the then-current Guaranteed Amount; or (ii) Administrative Agent’s foreclosure or acceptance of a deed in lieu of foreclosure with respect to any collateral securing the Indebtedness; or (iii) the payment to Administrative Agent by Guarantor of any amount pursuant to and under that certain Non-Recourse Exception Guaranty Agreement of even date herewith made by Guarantor, in favor of Administrative Agent, that certain Completion and Payment Guaranty of even date herewith made by Guarantor in favor of Administrative Agent or that certain Environmental Indemnity Agreement of even date herewith made by Guarantor and Borrower in favor of Administrative Agent. Guarantor’s obligations shall not be affected, impaired, lessened or released by loans, credits or other financial accommodations now existing or hereafter advanced by Administrative Agent or any Lender to Borrower in excess of the Guaranteed Amount”;

 

and

 

(b) the following new Paragraph 17 shall be added at the end of the Payment Guaranty:

 

“17. Guarantor covenants and agrees, at all times through the date of full and final payment of the Facility Indebtedness of Borrower to the Administrative Agent and the Lenders, to comply, and cause the Consolidated Group to comply, with those financial covenants set forth in Sections 6.17, 6.18(iv) and 6.18(v) of that certain Amended and Restated Credit Agreement dated as of December 14, 2006, by and among Guarantor, KeyBank National Association, as Administrative Agent and individually as a lender, and certain other lenders, as amended by a Comprehensive Amendment thereto dated as of March 4, 2010 and a Second Amendment thereto dated as of April 27, 2010, as such Sections, and the defined terms used therein, exist as of April 27, 2010.  Guarantor acknowledges and agrees that its obligation to comply with such financial covenants and the defined terms used therein as they exist on April 27, 2010 shall continue, notwithstanding any amendment, modification or termination of such Amended and Restated Credit Agreement thereafter unless the Requisite Lenders shall have agreed in writing to amend or modify such financial covenants or the defined terms used therein.”

 

13. References. Each of the parties hereby consents to all of the changes made to the Loan Agreement and to the Payment Guaranty pursuant to this Amendment and agrees that each reference in the Loan Documents to the Loan Agreement and to the Payment Guaranty shall deemed to be a reference to the Loan Agreement and the Payment Guaranty as amended by this Amendment.

 

  

10

  

 

14. Representations and Warranties. Borrower hereby remakes, as of the Amendment Effective Date, all of the representations and warranties of Borrower in Section 4 of the Loan Agreement and each reference therein to “the date hereof” or “the Agreement Effective Date” shall be deemed to be a reference to the Amendment Effective Date.  Borrower hereby further represents and warrants to Agent and Lenders as follows:

 

(a) This Amendment constitutes the legal, valid and binding obligation of Borrower, and is enforceable in accordance with its terms;

 

(b) Except as expressly modified hereby, the Loan Documents are ratified and confirmed hereby, are in full force and effect, and Borrower has no defenses or offsets to the enforcement thereof or counterclaims which relate thereto;

 

(c) Upon execution and delivery of this Amendment and satisfaction of the conditions to the effectiveness of this Amendment, to the best of Borrower’s knowledge, information and belief, no Event of Default shall exist under the Loan Documents;

 

(d) Borrower and Guarantor each have full power and authority to execute this Amendment; and

 

(e) The Advances have been and shall be requested by Borrower, and the proceeds of the Advances have been and shall be utilized by Borrower, for its own account.

 

15. Exhibits. The parties further agree that (i) the original Budget attached to the Loan Agreement as Exhibit G – Initial Budget is hereby deleted and replaced by the current approved Budget which is attached to this Amendment as Exhibit G - Budget (Revised) and made a part hereof and each reference in the Loan Agreement to the Budget from and after the Amendment Effective Date shall be deemed to be a reference to such Exhibit G - Budget (Revised),  (ii) the original Borrower’s Certificate attached to the Loan Agreement as Exhibit H – Borrower’s Certificate is hereby deleted and replaced by Exhibit H – Borrower’s Certificate (Revised) which is attached to this Amendment and made a part hereof and each reference in the Loan Agreement to the Borrower’s Certificate from and after the Amendment Effective Date shall be deemed to be a reference to such Exhibit H – Borrower’s Certificate (Revised), and (iii) an Account Pledge, Control and Security Agreement is hereby added as Exhibit J to the Loan Agreement in the form attached to this Amendment and made a part hereof and each reference in the Loan Agreement to the “Security Documents” shall be deemed to refer to and include such Account Pledge, Control and Security Agreement.

 

16. Governing Law.  This Amendment shall be construed in accordance with the internal laws (and not the law of conflicts) of the State of Ohio, but giving effect to Federal laws applicable to national banks.

 

17. Release of Prior Claims

 

.  Borrower and Guarantor each do hereby release, remise, acquit and forever discharge the Administrative Agent and the other Lenders and their respective employees, agents, representatives, consultants, attorneys, fiduciaries, servants, officers, directors, partners, predecessors, successors and assigns, subsidiary corporations, parent corporations, and related corporate divisions (all of the foregoing hereinafter called the “Released Parties”), from any and all actions and causes of action, judgments, executions, suits, debts, claims, demands, liabilities, obligations, damages and expenses of any and every character, known or unknown, direct and/or indirect, at law or in equity, of whatever kind or nature, whether heretofore or hereafter arising, for or because of any matter or things done, omitted or suffered to be done by any of the Released Parties prior to and including the date of execution hereof, and in any way arising out of or in any way connected to the Loan Agreement, the Payment Guaranty or the other Loan Documents (all of the foregoing hereinafter called the “Released Matters”).  Borrower and Guarantor each acknowledges that the agreements herein are intended to be in full satisfaction of all or any alleged injuries or damages arising in connection with the Released Matters.  Borrower and Guarantor each represents and warrants to the Administrative Agent and the other Lenders that it has not purported to transfer, assign or otherwise convey any right, title or interest of Borrower or Guarantor in any Released Matter to any other Person and that the foregoing constitutes a full and complete release of all Released Matters.

  

11

  

 

18. Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute a single agreement.

 

19. Continued Effect. Other than as expressly amended herein, both Borrower and Guarantor agree that the Loan Agreement, Payment Guaranty and all other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK –

 

SIGNATURE PAGES TO IMMEDIATELY FOLLOW]

 

  

12

  

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Construction, Acquisition and Interim Loan Agreement and to Limited Payment and Performance Guaranty to be duly executed as of the date first above written.

 

BORROWER:

 

KIERLAND CROSSING, LLC, a Delaware limited liability company

 

	
  

	
By:

	
Glimcher Kierland Crossing, LLC, a Delaware limited liability company, its managing member

 

	
  

	
By:

	
Glimcher Properties Limited Partnership, a Delaware limited partnership

 

	
  

	
By:

	
Glimcher Properties Corporation, a Delaware corporation, its general partner

 

 

	
  

	
                By: /s/ Michael P. Glimcher

                       Michael P. Glimcher

	
  

	
                       Chief Executive Officer

 

180 East Broad Street

Columbus, Ohio  43215

Attention:  Richard Burkhart

Phone:  614-887-5889

Facsimile:  614-621-2326

Email:  rburkhar@glimcher.com

 

 

With copies to:

 

Attention:  General Counsel

Phone:  614-887-5623

Facsimile:  614-621-8863

Email:  krieck@glimcher.com

 

  

13

  

 

GUARANTOR:

 

GLIMCHER PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership

 

By:          Glimcher Properties Corporation, a Delaware corporation, its general partner

 

By: /s/ Michael P. Glimcher

Michael P. Glimcher

Chief Executive Officer

 

 

180 East Broad Street

Columbus, Ohio  43215

Attention:  Richard Burkhart

Phone:  614-887-5889

Facsimile:  614-621-2326

Email:  rburkhar@glimcher.com

 

With copies to:

 

Attention:  General Counsel

Phone:  614-887-5623

Facsimile:  614-621-8863

Email:  krieck@glimcher.com

 

  

14

  

 

ADMINISTRATIVE AGENT:

 

KEYBANK NATIONAL ASSOCIATION, a national banking association, as Administrative Agent

 

By: /s/ Kevin P. Murray                                                      

Name:  Kevin P. Murray

Title:  Senior Vice President

 

Address:

KeyBank - Real Estate Capital

127 Public Square - 8th Floor

Mail Code: OH-01-27-0839

Cleveland, OH  44114

Phone:  216-689-4660

Facsimile:  216-689-4997

Attn:  Kevin Murray

 

LENDERS:

 

KEYBANK NATIONAL ASSOCIATION, a national banking association

 

By: /s/ Kevin P. Murray                                                      

Name:  Kevin P. Murray

Title:  Senior Vice President

 

Address:

KeyBank - Real Estate Capital

127 Public Square - 8th Floor

Mail Code: OH-01-27-0839

Cleveland, OH  44114

Phone:  216-689-4660

Facsimile:  216-689-4997

Attn:  Kevin Murray

 

  

15

  

 

 

	
  

	
 
EUROHYPO AG, NEW YORK BRANCH,

Individually and as Syndication Agent

 

By: /s/ Nasir Alamdr 

Name: Nasir Alamdr 

Title: Executive Director                                                                           

 

By: /s/ Stephen Cox                                                                           

Name: Stephen Cox 

Title: Executive Director                                                                           

 

 

Address for notices:

Eurohypo AG, New York Branch

1114 Avenue of the Americas, 29th Floor

New York, NY  10036

Attention:  Head of Portfolio Operations

Facsimile:  866-267-7680

 

with copy to:

 

Eurohypo AG, New York Branch

1114 Avenue of the Americas, 29th Floor

New York, NY  10036

Attention:  Head of Legal Department

Facsimile:  866-267-7680

 

  

16

  

 

THE HUNTINGTON NATIONAL BANK, individually and as Documentation Agent

 

By:/s/ Mark Kauffman 

Name: Mark Kauffman 

Title: Senior Vice President 

 

The Huntington National Bank

41 S. High Street, HC0840 
Columbus, OH  43215

Attention:  Michael Kauffman, Senior Vice President

Phone:   216-515-6983

Facsimile:  877-297-9067

 

  

17

  

 

 

U.S. BANK NATIONAL ASSOCIATION

By: /s/ Anthony J. Mathena 

Name: Anthony J. Mathena 

Title: Vice President 

 

U.S. Bank National Association

175 S. Third Street

Columbus, OH  43215

Attention:  Anthony Mathena, Vice President

Phone:  614-232-8013

Facsimile:  614-232-8033

 

 

  

18

  

 

PNC BANK, NATIONAL ASSOCIATION

 

 

By: /s/ Brent Sobczak 

Name: Brent Sobczak 

Title: Assistant Vice President        

 

PNC Bank

155 East Broad Street

Columbus, OH  43215

Attention: Brent Sobczak, Assistant Vice President

Real Estate Banking

Phone:  614-463-7233

Facsimile:  614-463-8058

 

  

19

  

RAYMOND JAMES BANK, FSB

By: /s/ Thomas G. Scott 

Name: Thomas G. Scott 

Title: Senior Vice President 

710 Carillon Parkway

St. Petersburg, FL  33716

Phone:  727-567-4196

Fax:  727-567-8830

Attention:  Thomas Scott

  

20

  

EXHIBIT G

 BUDGET (REVISED)

 

  

  

  

EXHIBIT H

 

BORROWER’S CERTIFICATE

 

KeyBank National Association

800 Superior

Cleveland, OH  44114

ATTN:  COMMERCIAL REAL ESTATE DEPARTMENT

	
RE:

	
Application for Advance or confirmation of equity contribution in connection with a $220,000,000 loan (#______________________) to Kierland Crossing, LLC (“Borrower”).

	
  

	
1.

	
Pursuant to that certain Construction, Acquisition and Interim Loan Agreement dated November 30, 2007, as amended (the “Construction Loan Agreement”) among Borrower, KeyBank National Association, as administrative agent (“Agent”) and certain other lenders named therein (“Lenders”), Borrower:

 

	
  

	
(a)

	
hereby requests a loan advance as indicated on the Soft and Hard Cost Requisition attached hereto.  We acknowledge that this amount is subject to inspection, verification, and available funds.

 

	
  

	
(b)

	
acknowledges and confirms that the current Maximum Loan Amount under the Construction Loan Agreement is $____________.

 

	
  

	
(c)

	
acknowledges and confirms the aggregate Borrower’s Equity Requirement invested to date as indicated on the Soft and Hard Cost Requisition attached hereto is $____________, and the amount of Borrower’s Equity Requirement to be invested in Project Costs simultaneously with this loan advance is $______________, which is consistent with the various requirements set forth in the definition of “Borrower’s Equity Requirement” in Section 1 of the Construction Loan Agreement.

 

Funding Instructions

 

	
  

	
2.

	
This Borrower’s Certificate is to be utilized only in satisfaction of costs and charges with respect to the Project and the Construction thereon as shown on the Soft and Hard Cost Requisition Form, dated ____________________, attached hereto.

 

	
  

	
3.

	
The Borrower agrees to provide, if requested by Agent, a Vendor Payee Listing showing the name and the amount currently due each party to whom Borrower is obligated for labor, material and/or services supplies.  This information would be provided in support of the disbursements set forth in paragraph 2 hereof.

 

	
  

	
4.

	
The Borrower also certifies and agrees that:

 

	
  

	
(a)

	
It has complied with all duties and obligations required to date to be carried out and performed by it pursuant to the terms of the Construction Loan Agreement;

 

	
  

	
(b)

	
No Event of Default as defined in the Construction Loan Agreement has occurred and is continuing;

 

  

  

  

 

	
  

	
(c)

	
All change orders or changes to the Schedule of Values have been submitted to and approved by Agent;

 

	
  

	
(d)

	
All funds previously disbursed have been used for the purposes as set forth in the Construction Loan Agreement;

 

	
  

	
(e)

	
All outstanding claims for labor, materials and/or services furnished prior to this draw period have been paid or will be paid from the proceeds of this disbursement;

 

	
  

	
(f)

	
All Construction prior to the date of this Borrower’s Certificate has been accomplished in accordance with the applicable plans and specifications;

 

	
  

	
(g)

	
All sums advanced by Agent and the Lenders or contributed by Borrower as equity on account of this Application will be used solely for the purpose of paying obligations owing as shown on the attached documentation and no item(s)  for which payment is requested and/or equity is contributed has (have) been the basis for any prior disbursement and/or equity contribution;

 

	
  

	
(h)

	
There are no liens outstanding against the Project or its equipment except for Permitted Liens and security interests as agreed upon in the Construction Loan Agreement;

 

	
  

	
(i)

	
The aggregate amount of the undisbursed current Maximum Loan Amount and the unfunded Borrower’s Equity Requirement remaining is sufficient to pay all Project Costs through Stabilization, including all costs of Construction in accordance with the plans and specifications originally submitted to the Agent as modified by Agent approved changed orders;

 

	
  

	
(j)

	
All representations and warranties contained in the Construction Loan Agreement are true and correct in all material respects as of the date hereof.

 

	
  

	
(k)

	
The undersigned understands that this certification is made for the purpose of inducing Agent and the Lenders to make a Loan to Borrower and that, in making such Loan, Agent and the Lenders will rely upon the accuracy of the matters stated in this certificate.

 

	
  

	
5.

	
Disbursement of the loan proceeds hereby requested are subject to the receipt by the Agent, in those states where applicable, of a certificate from the issuing title company stating that no claims have been filed of record which adversely affects the interest of Borrower in the Project, subsequent to the filing of the Deed of Trust.

 

	
  

	
6.

	
The terms used in this Borrower’s Certificate have the same meaning and definitions as those set forth in the Construction Loan Agreement.

 

  

2

  

	
  

	
7.

	
The Borrower, or authorized signer, certifies that the statements made in this Borrower’s Certificate and any documents submitted herewith and identified herein are true and has duly caused this Borrower’s Certificate to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

	 	DATE: 	 
	 	 	 
	 	 	 
	
 

	 	 
	 	 
BORROWER:

	 
	 	BY:	 
	 	ITS:	 

 

 

  

3

  

 

EXHIBIT J

ACCOUNT PLEDGE, CONTROL AND SECURITY AGREEMENT

THIS ACCOUNT SECURITY, PLEDGE, ASSIGNMENT AND CONTROL AGREEMENT (this “Agreement”), dated as of May ____, 2010, by and between KIERLAND CROSSING, LLC, a Delaware limited liability company (“Borrower”), KEYBANK NATIONAL ASSOCIATION, a national banking association (“KeyBank”), as Administrative Agent for itself and the other Lenders from time to time parties to the “Loan Agreement” (as hereinafter defined) (KeyBank in its capacity as Administrative Agent, is hereinafter referred to as “Agent”), and KEYBANK NATIONAL ASSOCIATION, a national banking association, individually as the depository for the Deposit Account, as defined below (“Bank”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that certain Construction, Acquisition and Interim Loan Agreement by and among Borrower, Agent and the Lenders dated as of November 30, 2007, as amended by that certain First Amendment to Construction, Acquisition and Interim Loan Agreement and to that certain Limited Payment and Performance Guaranty of even date herewith (the “First Amendment”) by and among Borrower, Glimcher Properties Limited Partnership, a Delaware limited partnership, the Lenders and Agent (as amended, the “Loan Agreement”), Lenders have agreed to make a loan in the amount of up to $220,000,000 (as modified or amended from time to time, the “Loan”) for the construction of the project (the “Project”) known as Scottsdale Quarter in Scottsdale, Arizona, which Loan is evidenced by those certain Notes made by Borrower to the order of Lenders in the aggregate face amount of $220,000,000 (such Notes, and each other Note as may be issued under the Loan Agreement, as the same may be varied, extended, supplemented, consolidated, amended, replaced, renewed, modified, increased or restated, are hereinafter referred to collectively as the “Note”).

 

WHEREAS, the Lenders and Agent have required, as a condition to entering into the First Amendment, that Borrower enter into this Agreement as additional security for the Obligations (as hereinafter defined).

 

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, the parties hereto covenant and agree as follows:

 

1.           Defined Terms.  Capitalized terms used in this Agreement, but that are not otherwise expressly defined in this Agreement, shall have the respective meanings given thereto in the Loan Agreement.  In addition, the following terms shall have the following meanings:

 

Bank.           KeyBank National Association, as depository bank.

 

Bankruptcy Code.  Title 11, U.S.C.A., as amended from time to time or any successor statute thereto.

 

Collateral:  As defined in §2, below.

 

Control Agreement:  That certain Deposit Account Control Agreement of even date herewith made by and among Borrower, Agent and Bank with respect to the Lockbox Account, in the form attached hereto as Attachment No. 1 and made a part hereof.

 

  

  

  

 

Event of Default:  As defined in §8, below.

 

Lockbox Account:  A segregated lockbox account held at Bank with the name “Kierland Crossing, LLC”, Account No. 359681260089 maintained by Borrower with Bank for receipt of all revenues from the Property (“Property Funds”).

 

Monthly Operational Expenses: The monthly operational expenses for the Property to be distributed from the Lockbox Account after an Event of Default shall be limited to and consist solely of the following items with the designated order of priority for payment:

 

(i) First, one twelfth of the amount required for the annual real estate tax payments for the Property;

 

(ii) Second, one twelfth of the amount required for payment of the annual premiums for the required insurance for the Property;

 

(iii) Third, funds sufficient to pay the monthly debt service payment due under the Loan;

 

(iv) Fourth, funds sufficient to pay any interest accruing at the Default Rate and late payment charges, if any, and all other amounts outstanding then due to Agent and the other Lenders under the Loan Documents; and

 

(v) Fifth, the amount required to reimburse Borrower for all other actual operational expenses incurred for the Property and paid by Borrower for the prior month.

 

The items described in clauses (i) through (iv) inclusive shall be remitted to Agent only (and, in the case of the items described in clauses (i) and (ii), held by Agent in the cash collateral account provided for in Section 12.1 of the Loan Agreement for application to pay such real estate taxes and insurance premiums directly when due).

 

UCC:  The Uniform Commercial Code as in effect in the State of Ohio.

 

2.           Security for Obligations.  To secure the full and punctual payment and performance by the Borrower of all duties, responsibilities and obligations under this Agreement, the Loan Agreement, the Note and the other Loan Documents, together with any and all renewals, restatements, modifications, consolidations, amendments, increases and extensions thereof (such duties, responsibilities and obligations are hereinafter referred to as the “Obligations”), Borrower hereby collaterally assigns, conveys, grants, pledges, hypothecates and transfers to Agent a first-in-lien-priority continuing security interest in Borrower’s right, title and interest in and to the Lockbox Account and all cash and property, whether now owned or existing or hereafter acquired, in the Lockbox Account, including without limitation, all checks, drafts, wire transfers (whether made or in the process of being made) and other items deposited in or transferred to the Lockbox Account (the “Collateral”).

 

3.           Agent’s  Control of the Account.  Pursuant to the Control Agreement, Bank has agreed to comply with any instruction (within the meaning of Section 9-104 of the UCC, i.e., an order directing the disposition of funds in the Lockbox Account) originated by the Agent.  Subject to Section 7, the parties acknowledge and agree that by this Agreement and the Control Agreement Agent shall have sole and exclusive control of the Collateral within the meaning of Section 9-104 of the UCC.  Borrower and Agent agree that the Control Agreement is an authenticated record for the purposes of Section 9-104(a) of the UCC.

 

  

2

  

 

4.           Warranties and Covenants.  Borrower hereby warrants and represents to Agent, and covenants and agrees with Agent, as follows:

 

(a)           Borrower is and shall remain the sole, lawful, beneficial and record owner of the Collateral, free and clear of all liens, restrictions, claims, pledges, encumbrances, charges, claims of third parties and rights of set off or recoupment whatsoever other than Liens in favor of the Agent and the Bank hereunder, and Borrower has the full and complete right, power and authority to pledge and grant a security interest in the Collateral in favor of Agent, in accordance with the terms and provisions of this Agreement.

 

(b)           This Agreement creates a valid and binding first-in-lien priority pledge and assignment of and security interest in the Collateral securing the payment and performance of the Obligations.  Neither Borrower nor any other Person has performed or will perform or permit any other Person to perform any acts that might prevent Agent from enforcing any of the terms and conditions of this Agreement or that would limit Agent in any such enforcement.

 

 

(c)           There are no accounts maintained by Borrower, any Subsidiary of Borrower or any other Person for the receipt of Property Funds other than the Lockbox Account, and there are no agreements regarding the distribution or disposition of the funds in the Lockbox Account other than this Agreement and the other Loan Documents.

 

5.           General Covenants.  Borrower covenants and agrees with Agent that so long as any of the Obligations are outstanding or have not been paid or performed:

 

(a)           Subject to Section 7, Borrower, without the prior written consent of Agent, which consent may be withheld by Agent in its sole and absolute discretion, shall not directly, indirectly or by operation of law sell, transfer, assign, dispose of, pledge, convey, option, mortgage, hypothecate or encumber any of the Collateral.

 

(b)           Borrower shall at all times defend the Collateral against all claims and demands of all Persons at any time claiming any interest in the Collateral adverse to Agent’s interest in the Collateral as granted hereunder.

 

(c)           Borrower shall pay all taxes and other charges against the Collateral to the extent due and payable.

 

(d)           Borrower authorizes Agent, its counsel or its representative, at any time and from time to time, at the expense of Borrower, to execute and/or file any financing statements or financing statement amendments or continuations, that describe or relate to the Collateral or any portion thereof in such jurisdictions as Agent may deem necessary or desirable to perfect its security interest in any of the Collateral and such financing statements may contain, among other items as Agent may deem advisable to include therein, the federal tax identification number and organizational number of Borrower.  Borrower will make, execute, acknowledge and deliver or authorize the execution and delivery of and where appropriate, cause to be recorded and/or filed and from time to time thereafter be re-recorded and/or refiled at such time in such offices and places as shall be deemed desirable by Agent any financing statements, further assignments, security agreements, continuation statements, endorsements, assurances, certificates and other documents, and perform such other acts as Agent reasonably may deem necessary from time to time to establish and maintain in favor of Agent, valid and perfected security interests in the Collateral, free of all other liens, encumbrances, security interests and claims other than the Liens of the Agent hereunder.  Upon any failure of Borrower to do so, Agent may make, execute, record, file, rerecord and/or refile, acknowledge and deliver any and all such further assignments, security agreements, financing statements, continuation statements, endorsements, assurances, instruments, certificates and documents for and in the name of Borrower, and Borrower hereby irrevocably appoints Agent the agent and attorney-in-fact with full power of substitution of Borrower so to do.  This power is coupled with an interest and is irrevocable.  Without limiting the generality of the foregoing, Borrower will obtain such waivers of lien, estoppel certificates, deposit account control agreements or subordination agreements as Agent may require to insure the priority of its security interest in the Collateral.  Borrower shall also do anything else Agent may reasonably require from time to time to establish a valid security interest in and to further protect and perfect its security interest in the Collateral.

 

  

3

  

 

(e)           So long as any of the Obligations shall be outstanding, neither Borrower nor any Subsidiary of Borrower shall open any account for the receipt of the funds described in the Control Agreement other than the Lockbox Account and neither Borrower nor any Subsidiary of Borrower shall enter any agreement regarding the distribution or disposition of the funds described in the Control Agreement other than this Agreement.

 

6.           Establishment and Funding of Lockbox Account.

 

(a)           Establishment of Lockbox Account.  Borrower has established and currently maintains the Lockbox Account with the Bank and acknowledges that the Lockbox Account is a “deposit account” (as defined in Section 9-102(a)(29) of the UCC.

 

(b)           Distributions as Property Only of Borrower.  Borrower warrants and represents to, and covenants and agrees with, Agent that all of the funds deposited in the Control Agreement, when transferred from any account to the Lockbox Account, (i) are intended to be and are hereby agreed to be at that time property of only Borrower, subject, however, in all events, to the security interests granted by this Agreement to Agent, and (ii) shall be held by Bank for the benefit of Agent free of any liens or claim on the part of creditors of the Borrower other than Liens in favor of Agent and the Bank.

 

 

(c)           Jurisdiction. Notwithstanding any provision to the contrary in any other agreement between Borrower and Agent, Borrower and Agent agree that the “bank’s jurisdiction” as said term is used in Section 9-304 of the UCC is and shall be the State of Ohio as provided in the Control Agreement and the Laws of such state shall govern the perfection or nonperfection, and the priority of security interest of Agent, in the Lockbox Account.

 

7.           Transfer of Funds Out of Lockbox Account.  Notwithstanding anything in this Agreement to the contrary, provided no Event of Default has occurred and is then continuing, Agent shall permit Bank, in accordance with its customary cash management practices, to make transfers from the Lockbox Account on a daily basis to an account designated by Borrower pursuant to the terms of the Control Agreement. Each transfer of funds from the Lockbox Account shall be made only to the extent that immediately available funds are on deposit in the Lockbox Account, and Agent shall not have any responsibility to make additional funds available in the event that funds on deposit in the Lockbox Account are insufficient.  From and after Bank’s transfer of such funds pursuant to the Control Agreement, Agent shall have no further liability or responsibility with respect to, or control over, or security interest in, the funds so transferred. Notwithstanding anything in this Agreement to the contrary, if an Event of Default has occurred and is then continuing and until such time as the Loan has been accelerated and becomes due and payable in full, Agent is hereby irrevocably authorized to direct Bank to cease making any further transfers of funds at Borrower’s direction and to hold all funds in the Lockbox Account and shall only release such funds on a monthly basis to pay Monthly Operational Expenses when the Bank has received not later than one (1) business day prior the date of requested disbursement (i) from the Borrower a written payment direction certifying the amounts and payees with respect to the requested disbursements from each category of Monthly Operational Expenses for such month and (ii) from the Agent a written approval of such written payment direction.

 

8.           Event of Default.  An Event of Default shall exist hereunder upon the occurrence of any of the following:

 

  

4

  

 

(a)           Any warranty, representation or statement made by or on behalf of Borrower in this Agreement proves untrue or misleading in any material respect upon the date when made or deemed to have been made or repeated; or

 

(b)           Borrower shall fail to, or Borrower shall fail to cause any other Person to, duly and fully comply with any covenant, condition or agreement in §5(a) of this Agreement; or

 

(c)           Borrower shall fail to duly and fully comply with any other covenant, condition or agreement of this Agreement (other than those specified in subsection (b) above or any default excluded from any provision of cure of defaults contained in the Loan Agreement) and the same is not cured in the applicable time period provided in the Loan Agreement, if any; or

 

(d)           The occurrence of an Event of Default under the Loan Agreement; or

 

(e)           Any amendment to or termination of a financing statement naming Borrower as debtor and Agent as secured party, or any correction statement with respect thereto, is filed in any jurisdiction by any party other than Agent or Agent’s counsel without the prior written consent of Agent and the effect of such filing is not completely nullified to the reasonable satisfaction of Agent within ten (10) Business Days after written notice to Borrower thereof.

 

9.           Remedies.

 

(a)           Upon the occurrence and during the continuance of an Event of Default, Agent, without limitation, may:

 

(i)           without notice to Borrower, except as required by Law, and at any time or from time to time, charge, set-off, and otherwise apply all or any part of the Collateral against the Obligations or any part thereof;

 

(ii)           in its sole discretion, at any time and from time to time, exercise any and all rights and remedies available to it under this Agreement, and/or as a secured party under the UCC; and

 

(iii)           demand, collect, take possession of, receipt for, settle, compromise, adjust, sue for, foreclose,  or otherwise  realize upon the Collateral (or any portion thereof) as Agent may determine in its sole discretion.

 

(b)           Borrower hereby expressly waives, to the fullest extent permitted by Law, presentment, demand, protest or any notice of any kind in connection with this Agreement or the Collateral.  Agent may take any action deemed by Agent to be necessary or appropriate to the enforcement of the rights and remedies of Agent under this Agreement, and/or under any of the other Loan Documents.  The remedies of Agent shall include, without limitation, all rights and remedies specified in this Agreement and the other Loan Documents, all remedies of Agent under applicable Law, and the remedies of a secured party under the UCC as enacted in the State of Ohio, regardless of whether the UCC has been enacted or enacted in that form in any other jurisdiction in which such right or remedy is asserted.

 

(c)           If Borrower fails to perform any agreement or covenant contained in this Agreement beyond any applicable period for notice and cure, Agent may itself perform, or cause to be performed, any agreement or covenant of Borrower contained in this Agreement that Borrower shall fail to perform, and the cost of such performance, together with any reasonable expenses, including reasonable attorneys’ fees actually incurred (including attorneys’ fees incurred in any appeal) by Agent in connection therewith, shall be payable by Borrower upon demand and shall constitute a part of the Obligations and shall bear interest at the rate for overdue payments under the Loan Agreement.

 

  

5

  

 

(d)           Whether or not an Event of Default has occurred and whether or not Agent is the absolute owner of the Collateral, Agent may take such action as Agent may deem reasonably necessary to protect the Collateral or its security interest therein, Agent being hereby authorized to pay, purchase, contest and compromise any encumbrance, charge or lien that in the reasonable judgment of Agent appears to be prior or superior to its security interest and in exercising any such powers and authority to pay reasonably necessary expenses, employ counsel and pay reasonable attorney’s fees.  Any such advances made or expenses incurred by Agent shall constitute a part of the Obligations, shall be payable upon demand and shall bear interest at the rate for overdue payments under the Loan Agreement.

 

10.           Duties of Agent.  The powers conferred on Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Such care as Agent gives to the safekeeping of its own property of like kind shall constitute reasonable care of the Collateral when in Agent’s possession; provided that Agent shall not be required to make any presentment, demand or protest or give any notice of nonperformance, dishonor, protest or of any other nature and need not take any action to preserve any rights against any prior party or any other Person in connection with the Indebtedness or with respect to the Collateral.  Agent shall not have any responsibility or liability for the collection of any Collateral or by reason of any invalidity, lack of value or uncollectability of any of the payments received by it.

 

11.           Indemnification.

 

(a)           It is specifically understood and agreed that this Agreement shall not operate to place any responsibility or obligation whatsoever upon Agent, or cause Agent to be, or to be deemed to be, a partner, shareholder or member, as applicable in Borrower and that in accepting this Agreement, Agent does not assume or agree to perform at any time whatsoever any obligation or duty of Borrower relating to the Collateral or any other mortgage, indenture, contract, agreement or instrument to which Borrower is a party or to which it is subject, all of which obligations and duties shall be and remain with and upon Borrower.

 

(b)           Borrower agrees to indemnify, defend and hold Agent and its officers, directors, agents and employees harmless from and against any and all claims, expenses, losses and liabilities growing out of or resulting from this Agreement (including, without limitation, enforcement of this Agreement) or acts taken or omitted by Agent hereunder or in connection herewith, except claims, expenses, losses or liabilities arising from Agent’s gross negligence or willful misconduct.

 

(c)           Borrower upon demand shall pay to Agent the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and disbursements of counsel actually incurred (including those incurred in any appeal), and of any experts and agents, that Agent may incur in connection with (i) the administration of this Agreement, (ii) the sale of, collection from, or other realization upon, any of the Collateral, (iii) the exercise or enforcement of any of the rights of Agent hereunder, or (iv) the failure by Borrower to perform or observe any of the provisions hereof beyond any applicable period for notice and cure.

 

12.           Security Interest Absolute.  All rights of Agent, and the security interests hereunder, and all of the obligations secured hereby, shall be absolute and unconditional, irrespective of:

 

(a)           Any lack of validity or enforceability of the Loan Documents or any other agreement or instrument relating thereto;

 

  

6

  

 

(b)           Any change in the time (including the extension of the maturity date of the Note), manner or place of payment of, or in any other term of, all or any of the Obligations or any other amendment or waiver of or any consent to any departure from the Loan Documents;

 

(c)           Any exchange, release or nonperfection of any other collateral for the Obligations, or any release or amendment or waiver of or consent to departure from any of the Loan Documents with respect to all or any part of the Obligations; or

 

(d)           Any other circumstance (other than payment of the Obligations in full) that might otherwise constitute a defense available to, or a discharge of, Borrower or any third party for the Obligations or any part thereof.

 

13.           Amendments and Waivers.  No amendment or waiver of any provision of this Agreement nor consent to any departure therefrom shall in any event be effective unless the same shall be in writing and signed by Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  No delay or omission of Agent to exercise any right, power or remedy accruing upon any Event of Default shall exhaust or impair any such right, power or remedy or shall be construed to be a waiver of any such Event of Default, or acquiescence therein; and every right, power and remedy given by this Agreement to Agent may be exercised from time to time and as often as may be deemed expedient by Agent.  Failure on the part of Agent to complain of any act or failure to act that constitutes an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by Agent of Agent’s rights hereunder or impair any rights, powers or remedies consequent on any such or Event of Default.  Borrower hereby waives to the extent permitted by Law all rights that Borrower has or may have under and by virtue of the UCC or in any other state, and any federal, state, county or municipal statute, regulation, ordinance, Constitution or charter, now or hereafter existing, similar in effect thereto providing any right of Borrower to notice and to a judicial hearing prior to seizure by Agent of any of the Collateral.  Borrower hereby waives and renounces for itself, its successors and assigns, presentment, demand, protest, advertisement or notice of any kind (except for any notice required by Law or the Loan Documents) and all rights to the benefits of any statute of limitations and any moratorium, reinstatement, marshaling, forbearance, valuation, stay, extension, homestead, redemption and appraisement now provided or that may hereafter be provided by the Constitution and laws of the United States and of any state thereof, both as to itself and in and to all of its property, real and personal, against the enforcement of this Agreement and the collection of any of the Obligations.

 

14.           Continuing Security Interest; Release of Collateral.  This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the performance of all obligations of Borrower under the Loan Agreement and the indefeasible payment in full of the Obligations, (b) be binding upon Borrower and its permitted successors and assigns, and (c) inure, together with the rights and remedies of Agent hereunder, to the benefit of Bank, Agent and their respective successors, transferees and assigns.  Upon the performance of all obligations of Borrower under the Loan Agreement and the indefeasible payment in full of the Obligations, the security interest granted hereby shall terminate and all rights to the Collateral shall revert to Borrower.  Upon any such termination, Agent will at Borrower’s expense execute and deliver to Borrower such documents as Borrower shall reasonably request to evidence such termination and the release of any lien created by this Agreement.  No third Person shall be or be deemed to be a beneficiary of this Agreement.

 

15.           Assignment Binding Upon Successors.  This Agreement may be assigned by Borrower only with the prior written consent of Agent.  All rights of Agent under this Agreement shall inure to the benefit of its successors and assigns.  All obligations of Borrower shall bind its heirs, executors, administrators, successors and assigns.

 

  

7

  

 

16.           Governing Law; Terms.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE INTERNAL LAWS OF THE STATE OF OHIO (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS AND CHOICE OF LAW).

 

17.           Notices.  Each notice, demand, election or request provided for or permitted to be given pursuant to this Agreement shall be deemed to have been properly given or served if given in the manner provided in the Loan Agreement.

 

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

 

19.           Cash Collateral.  In the event that Borrower becomes the subject of a proceeding under the Bankruptcy Code, the parties hereto agree that the Collateral shall constitute “cash collateral” of Agent under Section 363 of the Bankruptcy Code.

 

20.           Miscellaneous.  Time is of the essence of this Agreement.  Title or captions of paragraphs hereof are for convenience only and neither limit nor amplify the provisions hereof.  References to a particular section refer to that section of this Agreement unless otherwise indicated.  If, for any circumstances whatsoever, fulfillment of any provision of this Agreement shall involve transcending the limit of validity presently prescribed by applicable Law, the obligation to be fulfilled shall be reduced to the limit of such validity; and if any clause or provision herein operates or would prospectively operate to invalidate this Agreement, in whole or in part, then such clause or provision only shall be held for naught, as though not herein contained, and the remainder of this Agreement shall remain operative and in full force and effect.

 

21.           Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original.  Said counterparts shall constitute but one and the same instrument and shall be binding upon each of the undersigned individually as fully and completely as if all had signed but one instrument.

 

[Remainder Of Page Intentionally Left Blank]

 

  

8

  

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

 

BORROWER:

KIERLAND CROSSING, LLC, a Delaware limited liability company

 

	
  

	
By:

	
Glimcher Kierland Crossing, LLC,

a Delaware limited liability company,

its managing member

 

	
  

	
By:

	
Glimcher Properties Limited Partnership,

a Delaware limited partnership

 

	
  

	
By:

	
Glimcher Properties Corporation,

a Delaware corporation,

its general partner

 

 

By: _______________________________

                                                                Name: _____________________________

                                                                Title: ______________________________

 

AGENT:

 

 

KEYBANK NATIONAL ASSOCIATION, a national banking association, as Administrative Agent

 

By:                                                                                     

Name:                                                                                     

Title:                                                                                     

 

BANK:

 

KEYBANK NATIONAL ASSOCIATION, a national banking association, as Bank

 

By:                                                                                     

Name:                                                                                     

Title:                                                                                     

 

  

  

  

ATTACHMENT 1

 

(Account – With Activation)

 

DEPOSIT ACCOUNT CONTROL AGREEMENT

 

 

This Agreement is entered into as of May __, 2010, among Kierland Crossing, LLC (“Company”), KeyBank National Association (“Lender”), as administrative agent for itself and certain other lenders under a Construction, Acquisition and Interim Loan Agreement dated as of November 30, 2007, as amended by a First Amendment to Construction, Acquisition and Interim Loan Agreement and to that certain Limited Payment and Performance Guaranty dated as of May __, 2010 (as amended, the “Loan Agreement”), and KeyBank National Association (“Bank”), individually as the depository for the Account, as defined below, with respect to the following:

 

A.           Bank has established and maintained for the Company deposit account number 359681260089 (the “Account”).

 

B.           Company has assigned to Lender a security interest in the Account and in checks and other payment instructions (“Checks”) deposited in the Account.

 

C.           Company, Lender and Bank are entering into this Agreement to evidence Lender’s security interest in the Account and such Checks and to provide for the disposition of net proceeds of Checks deposited in the Account.

 

Accordingly, Company, Lender and Bank agree as follows:

 

1.           (a)           This Agreement evidences Lender’s control over the Account.  Notwithstanding anything to the contrary in the agreement between Bank and Company governing the Account, Bank will comply with instructions originated by Lender as set forth herein directing the disposition of funds in the Account without further consent of the Company.

 

(b)           Company represents and warrants to Lender and Bank that it has not assigned or granted a security interest in the Account or any Check deposited in the Account, except to Lender.

 

(c)           Company will not permit the Account to become subject to any other pledge, assignment, lien, charge or encumbrance of any kind, other than Lender’s security interest referred to herein.

 

(d)           The Account may receive merchant card deposits and chargebacks.  Company acknowledges and agrees that during the Activation Period (defined below), chargebacks will be blocked from debiting the Account.

 

2.           During the Activation Period (as defined below), Bank shall prevent Company from making any withdrawals from the Account. Prior to the Activation Period, Company may operate and transact business through the Account in its normal fashion, including making withdrawals from the Account, but covenants to Lender it will not close the Account. Bank shall have no liability in the event Company breaches this covenant to Lender.

 

A reasonable period of time following the commencement of the Activation Period, and continuing on each Business Day thereafter, Bank shall hold all funds in the Account and only release such funds on a weekly basis at the direction of the Lender to pay the obligations of the Company under the Credit Agreement and such expenses as the Lender has approved in writing in response to a written payment direction from the Company certifying the proposed amounts and payees with respect to the requested disbursements describing in detail by category the expenses for such week.  The “Activation Period” means the period which commences within a reasonable period of time not to exceed two Business Days after Bank’s receipt of a written notice from Lender in the form of Exhibit A (the “Notice”).  A “Business Day” is each day except Saturdays, Sundays and Bank holidays.  Funds are not available if, in the reasonable determination of Bank, they are subject to a hold, dispute or legal process preventing their withdrawal.

 

3.           Bank agrees it shall not offset, charge, deduct or otherwise withdraw funds from the Account, except as permitted by Section 4, until it has been advised in writing by Lender that all of Company’s obligations that are secured by the Checks and the Account are paid in full.  Lender shall notify Bank promptly in writing upon payment in full of Company’s obligations.

 

  

  

  

 

4.           Bank is permitted to charge the Account:

 

(a)           for its fees and charges relating to the Account or associated with this Agreement; and

 

(b)           for the amount of any Check deposited into the Account is returned unpaid for any reason or for any breach of warranty claim; and

 

(c)           for any ACH credit entries that may have been originated by Company but that have not settled at the time of the commencement of the Activation Period, or for any entries, whether credit or debit, that are subsequently returned thereafter.

 

5.             (a)           If the balances in the Account are not sufficient to compensate Bank for any fees or charges due Bank in connection with the Account or this Agreement, Company agrees to pay Bank on demand the amount due Bank.  Company will have breached this Agreement if it has not paid Bank, within five days after such demand, the amount due Bank.

 

(b)           If the balances in the Account are not sufficient to compensate Bank for any returned Check, Company agrees to pay Bank on demand the amount due Bank.  If Company fails to so pay Bank immediately upon demand, Lender agrees to pay Bank within five days after Bank’s demand to Lender to pay any amount received by Lender with respect to such returned Check.  The failure to so pay Bank shall constitute a breach of this Agreement.

 

(c)           Company hereby authorizes Bank, without prior notice, from time to time to debit any other account Company may have with Bank for the amount or amounts due Bank under subsection 5(a) or 5(b).

 

6.           In addition to the original Bank statement provided to Company, Bank will provide Lender with a duplicate of such statement.

 

7.            (a)           Bank will not be liable to Company or Lender for any expense, claim, loss, damage or cost (“Damages”) arising out of or relating to its performance under this Agreement other than those Damages which result directly from its acts or omissions constituting gross negligence or intentional misconduct.

 

(b)           In no event will Bank be liable for any special, indirect, exemplary or consequential damages, including but not limited to lost profits.

 

(c)           Bank will be excused from failing to act or delay in acting, and no such failure or delay shall constitute a breach of this Agreement or otherwise give rise to any liability of Bank, if (i) such failure or delay is caused by circumstances beyond Bank’s reasonable control, including but not limited to legal constraint, emergency conditions, action or inaction of governmental, civil or military authority, fire, strike, lockout or other labor dispute, war, riot, theft, flood, earthquake or other natural disaster, breakdown of public or private or common carrier communications or transmission facilities, equipment failure, or negligence or default of Company or Lender or (ii) such failure or delay resulted from Bank’s reasonable belief that the action would have violated any guideline, rule or regulation of any governmental authority.

 

(d)           Bank shall have no duty to inquire or determine whether Company’s obligations to Lender are in default or whether Lender is entitled to provide the Notice to Bank.  Bank may rely on notices and communications it believes in good faith to be genuine and given by the appropriate party.

 

(e)           Notwithstanding any of the other provisions in this Agreement, in the event of the commencement of a case pursuant to Title 11, United States Code, filed by or against Company, or in the event of the commencement of any similar case under then applicable federal or state law providing for the relief of debtors or the protection of creditors by or against Company, Bank may act as Bank deems necessary to comply with all applicable provisions of governing statutes and shall not be in violation of this Agreement as a result.

 

  

2

  

 

(f)           Bank shall be permitted to comply with any writ, levy order or other similar judicial or regulatory order or process concerning the Account or any Check and shall not be in violation of this Agreement for so doing.

 

8.            (a)           Company shall indemnify Bank against, and hold it harmless from, any and all liabilities, claims, costs, expenses and damages of any nature (including but not limited to allocated costs of staff counsel, other reasonable attorney’s fees and any fees and expenses) in any way arising out of or relating to disputes or legal actions concerning Bank’s provision of the services described in this Agreement.  This section does not apply to any cost or damage attributable to the gross negligence or intentional misconduct of Bank.  Company’s obligations under this section shall survive termination of this Agreement.

 

(b)           Lender hereby agrees to indemnify, defend and hold harmless Bank against any loss, liability or expense (including but not limited to allocated costs of staff counsel, other reasonable attorney’s fees and any fees and expenses) arising from Bank complying with any written instructions of Lender pursuant to this Agreement other than if related to Bank’s gross negligence, bad faith, or willful misconduct.  Lender’s obligations under this section shall survive termination of this Agreement.

 

9.            (a)           Company shall pay to Bank, upon receipt of Bank’s invoice, all costs, expenses and attorneys’ fees (including allocated costs for in-house legal services) incurred by Bank in connection with the enforcement of this Agreement and any instrument or agreement required hereunder, including but not limited to any such costs, expenses and fees arising out of the resolution of any conflict, dispute, motion regarding entitlement to rights or rights of action, or other action to enforce Bank’s rights in a case arising under Title 11, United States Code.  Company agrees to pay Bank, upon receipt of Bank’s invoice, all costs, expenses and attorneys’ fees (including allocated costs for in-house legal services) incurred by Bank in the preparation and administration of this Agreement (including any amendments hereto or instruments or agreements required hereunder).

 

(b)           Lender shall pay to Bank, upon receipt of Bank’s invoice, all costs, expenses and attorneys’ fees (including allocated costs for in-house legal services) incurred by Bank in connection with the enforcement against Lender of this Agreement and any instrument or agreement required hereunder to the extent that Bank is the prevailing party in such enforcement action.

 

(c)           Bank shall pay to Lender, upon receipt of Lender’s invoice, all costs, expenses and attorneys’ fees (including allocated costs for in-house legal services) incurred by Lender in connection with the enforcement against Bank of this Agreement and any instrument or agreement required hereunder to the extent that Lender is the prevailing party in such enforcement action.

 

10.           Termination and Assignment of this Agreement shall be as follows:

 

(a)           Lender may terminate this Agreement by providing notice to Company and Bank that all of Company’s obligations which are secured by Checks and the Account are paid in full.  Lender may also terminate or it may assign this Agreement upon 30 days' prior written notice to Company and Bank.  Bank may terminate this Agreement upon 30 days’ prior written notice to Company and Lender.  Company may not terminate this Agreement except with the written consent of Lender and upon prior written notice to Bank.

 

(b)           Notwithstanding subsection 10(a), Bank may terminate this Agreement at any time by written notice to Company and Lender if either Company or Lender breaches any of the terms of this Agreement, or any other agreement with Bank.

 

11.           (a)           Each party represents and warrants to the other parties that (i) this Agreement constitutes its duly authorized, legal, valid, binding and enforceable obligation; (ii) the performance of its obligations under this Agreement and the consummation of the transactions contemplated hereunder will not (A) constitute or result in a breach of its certificate or articles of incorporation, by-laws or partnership agreement, as applicable, or the provisions of any material contract to which it is a party or by which it is bound or (B) result in the violation of any law, regulation, judgment, decree or governmental order applicable to it; and (iii) all approvals and authorizations required to permit the execution, delivery, performance and consummation of this Agreement and the transactions contemplated hereunder have been obtained.

 

  

3

  

 

(b)           The parties each agree that it shall be deemed to make and renew each representation and warranty in subsection 11(a) on and as of each day on which Company uses the services set forth in this Agreement.

 

12.           (a)           This Agreement may be amended only by a writing signed by Company, Lender and Bank; except that Bank’s charges are subject to change by Bank upon 30 days’ prior written notice to Company.

 

(b)           This Agreement may be executed in counterparts; all such counterparts shall constitute but one and the same agreement.

 

(c)           This Agreement controls in the event of any conflict between this Agreement and any other document or written or oral statement.  This Agreement supersedes all prior understandings, writings, proposals, representations and communications, oral or written, of any party relating to the subject matter hereof.

 

(d)           This Agreement shall be interpreted in accordance with Ohio law without reference to that state’s principles of conflicts of law.

 

13.           Any written notice or other written communication to be given under this Agreement shall be addressed to each party at its address set forth on the signature page of this Agreement or to such other address as a party may specify in writing.  Except as otherwise expressly provided herein, any such notice shall be effective upon receipt.

 

14.           Nothing contained in the Agreement shall create any agency, fiduciary, joint venture or partnership relationship between Bank and Company or Lender.  Company and Lender agree that nothing contained in this Agreement, nor any course of dealing among the parties to this Agreement, shall constitute a commitment or other obligation on the part of Bank to extend credit to Company or Lender.

 

 

The remainder of this page is intentionally left blank.

 

  

4

  

In Witness Whereof, the parties hereto have executed this Agreement by their duly authorized officers as of the day and year first above written.

 

	  	  	  
	
KIERLAND CROSSING, LLC, a Delaware limited liability company

 

By:  Glimcher Kierland Crossing, LLC, a Delaware limited liability company, its managing member

 

By:  Glimcher Properties Limited Partnership,

	  	  
	
a Delaware limited partnership

	  	
Address for Notices:

	  	  	  
	
By:       Glimcher Properties Corporation,

	  	
180 East Broad Street

	
its sole general partner

	  	
Columbus, OH  43215

	  	  	
Attention:  Richard Burkhart

	  	  	
Phone:  614-887-5889

	
By: ________________________________________

	  	
Facsimile:  614-621-2326

	
Kim A. Rieck

	  	
Email:  eburkhar@glimcher.com

	
Senior Vice President,

	  	  
	
General Counsel & Secretary

	  	
with copies to:

	  	  	  
	  	  	
Attention:  General Counsel

	  	  	
Phone:  614-887-5623

	  	  	
Facsimile:  614-621-8863

	  	  	
Email:  krieck@glimcher.com

	  	  	  
	  	  	  
	  	  	  
	
KEYBANK NATIONAL ASSOCIATION,

Individually and as Administration Agent

	  	  
	  	  	
Address for Notices:

	  	  	  
	
By: ________________________________________

	  	
1200 Abernathy Road NE

	
Kevin P. Murray

	  	
Suite 1550

	
Senior Vice President

	  	
Atlanta, GA  30328

	  	  	
Attention:  Kevin P. Murray

	  	  	
Phone:  770-510-2168

	  	  	
Facsimile:  770-510-2195

	  	  	  
	  	  	  
	
KEYBANK NATIONAL ASSOCIATION,

Individually as Bank

	  	  
	  	  	
Address for Notices:

	  	  	  
	
By: ________________________________________

	  	__________________________________________
	
Name: ______________________________________

	  	__________________________________________
	
Its: ________________________________________

	  	__________________________________________
	  	  	
Attention: __________________________________

	  	  	
Phone: ____________________________________

	  	  	
Facsimile: __________________________________

 

  

5

  

EXHIBIT A

DEPOSIT ACCOUNT CONTROL AGREEMENT

 

Letterhead of KeyBank National Association

 

, 201_

 

To:           KeyBank National Association

Re:           Kierland Crossing, LLC

Account No. 359681260089

Ladies and Gentlemen:

 

Reference is made to the Deposit Account Control Agreement dated May __, 2010 (the “Agreement”) among Kierland Crossing, LLC, us and you regarding the above-described account (the “Account”). In accordance with Section 2 of the Agreement, we hereby give you notice of our exercise of control of the Account and we hereby instruct you to transfer funds to our account as follows:

 

	Bank Name:	 	 	 
	
Bank Address: 

	
 

	 	 
	ABA No.: 	 	 	 
	Account Name: 	 	 	 
	Account No.: 	 	 	 
	Beneficiary’s Name: 	 	 	 

 

                                      

Very truly yours,

 

KeyBank National Association,

as Lender under the Agreement

 

 

By: ______________________________

Name: _____________________    

Title: ______________________      

  

6

  

 

ATTACHMENT I

DEPOSIT ACCOUNT CONTROL AGREEMENT

 

Letterhead of KeyBank National Association

 

____________________________, 201__

 

KeyBank National Association

__________________________________

__________________________________

__________________________________

Attn: ______________________________

Re:          Termination of Deposit Account Control Agreement

Account:  359681260089

Ladies and Gentlemen:

 

Reference is made to that certain Deposit Account Control Agreement dated as of May __, 2010 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Agreement”) among you, Kierland Crossing, LLC (the “Company”), and us as (‘Lender”). You are hereby notified that the Agreement is terminated with respect to the undersigned, and you have no further obligations to the undersigned thereunder. Notwithstanding any previous instructions to you, you are hereby instructed to accept all future directions with respect to the Account from the Company. This notice terminates any obligations you may have to the undersigned with respect to the Account.

 

Very truly yours,

KeyBank National Association,

as Lender under the Agreement

By: ______________________________

Name: _____________________    

Title: ______________________      

Acknowledged and Agreed:

KeyBank National Association, as Bank

By: ______________________________

Name: _____________________    

Title: ______________________Unassociated Document

Exhibit 10.119

 

LOAN AGREEMENT

 

Dated as of April 8, 2010

 

between

 

GLIMCHER MJC, LLC,

 

as Borrower,

 

and

 

GOLDMAN SACHS COMMERCIAL MORTGAGE CAPITAL, L.P.,

 

as Lender

 

  

  

  

 

TABLE OF CONTENTS

 

Page

	DEFINITIOIONS 1 
	
ARTICLE I

	
GENERAL TERMS

	
Section 1.1.     The Loan

	
23

	
Section 1.2.     Interest and Principal

	
23

	
Section 1.3.     Method and Place of Payment

	
25

	
Section 1.4.     Taxes

	
25

	
Section 1.5.     Release

	
26

	
ARTICLE II

	
DEFEASANCE AND ASSUMPTION

	
Section 2.1.     Defeasance

	
26

	
Section 2.2.     Assumption

	
28

	
Section 2.3.     Transfers of Interests in Borrower

	
29

	
ARTICLE III

	
ACCOUNTS

	
Section 3.1.     Cash Management Account

	
30

	
Section 3.2.     Distributions from Cash Management Account

	
31

	
Section 3.3.     Loss Proceeds Account

	
32

	
Section 3.4.     Basic Carrying Costs Escrow Account

	
32

	
Section 3.5.     TI/LC Reserve Account

	
33

	
Section 3.6.     Capital Expenditure Reserve Account

	
34

	
Section 3.7.     Unfunded Obligations Account

	
35

	
Section 3.8.     Excess Cash Flow Reserve Account

	
36

	
Section 3.9      Account Collateral

	
37

	
Section 3.10    Bankruptcy

	
37

	
ARTICLE IV

	
REPRESENTATIONS

	
Section 4.1.     Organization

	
38

	
Section 4.2.     Authorization

	
38

	
Section 4.3.     No Conflicts

	
38

	
Section 4.4.     Consents

	
38

	
Section 4.5.     Enforceable Obligations

	
39

	
Section 4.6.     No Default

	
39

	
Section 4.7.     Payment of Taxes

	
39

	
Section 4.8.     Compliance with Law

	
39

	
Section 4.9.     ERISA

	
39

	
Section 4.10.   Investment Company Act

	
39

  

i

  

	
Section 4.11.   No Bankruptcy Filing

	
40

	
Section 4.12.   Other Debt

	
40

	
Section 4.13.   Litigation

	
40

	
Section 4.14.   Leases; Material Agreements

	
40

	
Section 4.15.   Full and Accurate Disclosure

	
41

	
Section 4.16.   Financial Condition

	
41

	
Section 4.17.   Single-Purpose Requirements

	
41

	
Section 4.18.   Use of Loan Proceeds

	
42

	
Section 4.19.   Not Foreign Person

	
42

	
Section 4.20.   Labor Matters

	
42

	
Section 4.21.   Title

	
42

	
Section 4.22.   No Encroachments

	
42

	
Section 4.23.   Physical Condition

	
43

	
Section 4.24.   Fraudulent Conveyance

	
43

	
Section 4.25.   Management

	
43

	
Section 4.26.   Condemnation

	
43

	
Section 4.27.   Utilities and Public Access

	
43

	
Section 4.28.   Environmental Matters

	
44

	
Section 4.29.   Assessments

	
44

	
Section 4.30.   No Joint Assessment

	
44

	
Section 4.31.   Separate Lots

	
45

	
Section 4.32.   Permits; Certificate of Occupancy

	
45

	
Section 4.33.   Flood Zone

	
45

	
Section 4.34.   Security Deposits

	
45

	
Section 4.35.   Acquisition Documents

	
45

	
Section 4.36.   Insurance

	
45

	
Section 4.37.   No Dealings

	
45

	
Section 4.38.   Estoppel Certificates

	
45

	
Section 4.39.   Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws

	
45

	
Section 4.40.   Survival

	
46

	
ARTICLE V

	
AFFIRMATIVE COVENANTS

	
Section 5.1.     Existence

	
46

	
Section 5.2.     Maintenance of Property

	
46

	
Section 5.3.     Compliance with Legal Requirements

	
47

	
Section 5.4.     Impositions and Other Claims

	
47

	
Section 5.5.     Access to Property

	
48

	
Section 5.6.     Cooperate in Legal Proceedings

	
48

	
Section 5.7.     Leases

	
48

	
Section 5.8.     Plan Assets, etc.

	
49

	
Section 5.9.     Further Assurances

	
50

	
Section 5.10.   Management of Collateral

	
50

	
Section 5.11.   Notice of Material Event

	
51

	
Section 5.12.   Annual Financial Statements

	
51

  

ii

  

	
Section 5.13.   Quarterly Financial Statements

	
52

	
Section 5.14.   Monthly Financial Statements; Non-Delivery of Financial Statements

	
52

	
Section 5.15.   Insurance

	
53

	
Section 5.16.   Casualty and Condemnation

	
57

	
Section 5.17.   Annual Budget

	
60

	
Section 5.18.   General Indemnity

	
60

	
Section 5.19.   Nonbinding Consultation

	
61

	
Section 5.20.   Compliance with Encumbrances

	
61

	
Section 5.21.   Prohibited Persons

	
62

	
ARTICLE VI

	
NEGATIVE COVENANTS

	
Section 6.1.     Liens on the Property

	
63

	
Section 6.2.     Ownership

	
63

	
Section 6.3.    Transfer

	
63

	
Section 6.4.     Debt

	
63

	
Section 6.5.     Dissolution; Merger or Consolidation

	
63

	
Section 6.6.     Change In Business

	
63

	
Section 6.7.     Debt Cancellation

	
63

	
Section 6.8.     Affiliate Transactions

	
63

	
Section 6.9.     Misapplication of Funds

	
63

	
Section 6.10.   Jurisdiction of Formation

	
63

	
Section 6.11.   Modifications and Waivers

	
63

	
Section 6.12.   ERISA

	
64

	
Section 6.13.   Alterations and Expansions

	
64

	
Section 6.14.   Advances and Investments

	
64

	
Section 6.15.   Single-Purpose Entity

	
65

	
Section 6.16.   Zoning and Uses

	
65

	
Section 6.17.   Waste

	
65

	
ARTICLE VII

	
DEFAULTS

	
Section 7.1.     Event of Default

	
65

	
Section 7.2.     Remedies

	
68

	
Section 7.3.     No Waiver

	
69

	
Section 7.4.     Application of Payments after an Event of Default

	
69

	
ARTICLE VIII

	
CONDITIONS PRECEDENT

	
Section 8.1.     Conditions Precedent to Closing

	
69

	
ARTICLE IX

	
MISCELLANEOUS

	
Section 9.1.     Successors

	
72

	
Section 9.2.     GOVERNING LAW

	
72

	
Section 9.3.     Modification, Waiver in Writing

	
73

 

  

iii

  

 

 

	
Section 9.4.     Notices

	
73

	
Section 9.5.     TRIAL BY JURY

	
74

	
Section 9.6.     Headings

	
74

	
Section 9.7.     Assignment and Participation

	
74

	
Section 9.8.     Severability

	
76

	
Section 9.9.     Preferences

	
76

	
Section 9.10.   Remedies of Borrower

	
76

	
Section 9.11.   Offsets, Counterclaims and Defenses

	
77

	
Section 9.12.   No Joint Venture

	
77

	
Section 9.13.   Conflict; Construction of Documents

	
77

	
Section 9.14.   Brokers and Financial Advisors

	
77

	
Section 9.15.   Counterparts

	
77

	
Section 9.16.   Estoppel Certificates

	
77

	
Section 9.17.   Payment of Expenses; Mortgage Recording Taxes

	
78

	
Section 9.18.   No Third-Party Beneficiaries

	
78

	
Section 9.19.   Recourse

	
78

	
Section 9.20.   Right of Set-Off

	
80

	
Section 9.21.   Exculpation of Lender

	
80

	
Section 9.22.   Servicer

	
80

	
Section 9.23.   No Fiduciary Duty

	
80

	
Section 9.24.   Disclosure of Borrower Information

	
81

	
Section 9.25.   Patriot Act Records

	
82

	
Section 9.26.   Prior Agreements

	
82

	
Section 9.27.   Publicity

	
84

 

  

iv

  

 

	
Exhibits

	  
	
A

	
Organizational Chart

	
B

	
Form of Tenant Notice

	
Schedules

	  
	
A

	
Property

	
B

	
Exception Report

	
C

	
[Intentionally Omitted]

	
D

	
Unfunded Obligations

	
E

	
Rent Roll

	
F

	
Material Agreements

  

v

  

 

LOAN AGREEMENT

 

This Loan Agreement (this “Agreement”) is dated April 8, 2010 and is between GOLDMAN SACHS COMMERCIAL MORTGAGE CAPITAL, L.P., a Delaware limited partnership, as lender (together with its successors and assigns, including any lawful holder of any portion of the Indebtedness, as hereinafter defined, “Lender”), and GLIMCHER MJC, LLC, a Delaware limited liability company, as borrower (together with its permitted successors and assigns, “Borrower”).

 

RECITALS

 

Borrower desires to obtain from Lender the Loan (as hereinafter defined) in connection with the financing of the property known as the Mall at Johnson City located in Johnson City, Tennessee.

 

Lender is willing to make the Loan on the terms and conditions set forth in this Agreement if Borrower joins in the execution and delivery of this Agreement, issues the Note and executes and delivers the other Loan Documents.

 

Lender and Borrower therefore agree as follows:

 

DEFINITIONS

 

(a)           When used in this Agreement, the following capitalized terms have the following meanings:

 

“Account Collateral” means, collectively, the Collateral Accounts and all sums at any time held, deposited or invested therein, together with any interest or other earnings thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or securities.

 

“Agreement” means this Loan Agreement, as the same may from time to time hereafter be modified or replaced.

 

“ALTA” means the American Land Title Association, or any successor thereto.

 

“Alteration” means any demolition, alteration, installation, improvement  or expansion of or to the Property or any portion thereof.

 

“Annual Budget” means a capital and operating expenditure budget for the Property prepared by Borrower and specifying amounts sufficient to operate and maintain the Property at a standard at least equal to that maintained on the Closing Date.

 

“Appraisal” means an as-is appraisal of the Property that is prepared by a member of the Appraisal Institute selected by Lender, meets the minimum appraisal standards for national banks promulgated by the Comptroller of the Currency pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended (FIRREA) and complies with the Uniform Standards of Professional Appraisal Practice (USPAP).

 

  

1

  

 

“Approved Annual Budget” has the meaning set forth in Section 5.17.

 

“Approved Management Agreement” means the Property Management Agreement, dated as of the Closing Date, between Borrower and the initial Approved Property Manager, as the same may be modified or replaced in accordance herewith with the consent of Lender, and any other management agreement that is approved by Lender and with respect to which the Rating Condition is satisfied.

 

“Approved Property Manager” means collectively, Glimcher Properties Limited Partnership, as manager, and Glimcher Development Corporation, as services provider, or any other management company approved by Lender in its sole discretion and with respect to which the Rating Condition is satisfied, in each case unless and until Lender requests the termination of that management company pursuant to Section 5.10(d).

 

 “Assignment” has the meaning set forth in Section 9.7(b).

 

“Assumption” has the meaning set forth in Section 2.2.

 

“Bankruptcy Code” has the meaning set forth in Section 7.1(d).

 

“Basic Carrying Costs Escrow Account” has the meaning set forth in Section 3.4(a).

 

“Blocked Account” has the meaning set forth in Section 3.1(b).

 

“Blocked Account Agreement” has the meaning set forth in Section 3.1(b).

 

“Blocked Account Bank” means the Eligible Institution at which a Blocked Account is maintained.

 

“Borrower” has the meaning set forth in the first paragraph of this Agreement.

 

“Budgeted Operating Expenses” means, with respect to any calendar month, (i) an amount equal to the Operating Expenses for such calendar month in the then-applicable Approved Annual Budget, or (ii) such greater amount as shall equal Borrower’s actual Operating Expenses for such month, except that during the continuance of a Trigger Period such greater amount, excluding amounts spent on Non-Discretionary Items, may in no event exceed 105% of the amount specified in clause (i), with no individual budget line item exceeding 110% of the amount set forth in the then-applicable Approved Annual Budget with respect to such line item for such month, in each case without the prior written consent of Lender, not to be unreasonably withheld or delayed.

 

“Business Day” means any day other than (i) a Saturday and a Sunday and (ii) a day on which federally insured depository institutions in the State of New York or the state in which the offices of Lender, its trustee, its Servicer or its Servicer’s collection account are located are authorized or obligated by law, governmental decree or executive order to be closed.

 

  

2

  

 

“Capital Expenditure” means hard and soft costs incurred by Borrower with respect to replacements and capital repairs made to the Property (including repairs to, and replacements of, structural components, roofs, building systems, parking garages and parking lots), in each case to the extent capitalized in accordance with GAAP.

 

“Capital Expenditure Reserve Account” has the meaning set forth in Section 3.6(a).

 

“Cash Management Account” has the meaning set forth in Section 3.1(a).

 

“Cash Management Agreement” has the meaning set forth in Section 3.1(a).

 

“Cash Management Bank” means a depository institution selected by Lender in which Eligible Accounts may be maintained.  The initial Cash Management Bank shall be The Bank of New York Mellon.

 

“Casualty” means a fire, explosion, flood, collapse, earthquake or other casualty affecting all or any portion of the Property.

 

“Certificates” means, collectively, any senior and/or subordinate notes, debentures or pass-through certificates, or other evidence of indebtedness, or debt or equity securities, or any combination of the foregoing, representing a direct or beneficial interest, in whole or in part, in the Loan.

 

“Closing Date” means the date of this Agreement.

 

“Closing Date NOI” means $6,704,578.

 

“Code” means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

 

“Collateral” means all assets owned from time to time by Borrower including the Property, the Revenues and all other tangible and intangible property (including any Defeasance Collateral) in respect of which Lender is granted a Lien under the Loan Documents, and all proceeds thereof.

 

“Collateral Accounts” means, collectively, the Cash Management Account, any Blocked Account, the Loss Proceeds Account, the Basic Carrying Costs Escrow Account, the TI/LC Reserve Account, the Excess Cash Flow Reserve Account, the Capital Expenditure Reserve Account and the Unfunded Obligations Account.

 

  

3

  

 

“Condemnation” means a taking or voluntary conveyance of all or part of the Property or any interest therein or right accruing thereto or use thereof, as the result of, or in settlement of, any condemnation or other eminent domain proceeding by any Governmental Authority.

 

“Contingent Obligation” means, with respect to any Person, any obligation of such Person directly or indirectly guaranteeing any Debt of any other Person in any manner and any contingent obligation to purchase, to provide funds for payment, to supply funds to invest in any other Person or otherwise to assure a creditor against loss.

 

 “Control” of any entity means the ownership, directly or indirectly, of at least 51% of the equity interests in, and the right to at least 51% of the distributions from, such entity and the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such entity, whether through the ability to exercise voting power, by contract or otherwise (“Controlled” and “Controlling” each have the meanings correlative thereto).

 

“Cooperation Agreement” means that certain Mortgage Loan Cooperation Agreement, dated as of the Closing Date, among Borrower, Lender and Sponsor, as the same may from time to time be modified or replaced in accordance herewith.

 

“Damages” to a party means any and all liabilities, obligations, losses, demands, damages, penalties, assessments, actions, causes of action, judgments, proceedings, suits, claims, costs, expenses (including reasonable attorneys’ fees and other costs of defense and/or enforcement whether or not suit is brought), fines, charges, fees, settlement costs and disbursements imposed on, incurred by or asserted against such party.

 

“Debt” means, with respect to any Person, without duplication:

 

(i)             all indebtedness of such Person to any other party (regardless of whether such indebtedness is evidenced by a written instrument such as a note, bond or debenture), including indebtedness for borrowed money or for the deferred purchase price of property or services;

 

(ii)            all letters of credit issued for the account of such Person and all unreimbursed amounts drawn thereunder;

 

(iii)           all indebtedness secured by a Lien on any property owned by such Person (whether or not such indebtedness has been assumed) except obligations for impositions which are not yet due and payable;

 

(iv)          all Contingent Obligations of such Person;

 

(v)           all payment obligations of such Person under any interest rate protection agreement (including any interest rate swaps, floors, collars or similar agreements) and similar agreements;

 

(vi)          all contractual indemnity obligations of such Person; and

 

  

4

  

 

(vii)         any material actual or contingent liability to any Person or Governmental Authority with respect to any employee benefit plan (within the meaning of Section 3(3) of ERISA) subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

 

“Default” means the occurrence of any event which, but for the giving of notice or the passage of time, or both, would be an Event of Default.

 

“Default Interest” means, during the continuance of an Event of Default, the amount by which interest accrued on the Notes at their respective Default Rates exceeds the amount of interest that would have accrued on the Notes at their respective Interest Rates.

 

“Default Rate” means, with respect to any Note, 5% per annum in excess of the interest rate otherwise applicable to such Note hereunder; provided that, if the foregoing would result in an interest rate in excess of the maximum rate permitted by applicable law, the Default Rate shall be limited to the maximum rate permitted by applicable law.

 

“Defeasance Borrower” has the meaning set forth in Section 2.1(b).

 

“Defeasance Collateral” means direct, non-callable AAA-rated obligations of the United States of America.

 

“Defeasance Pledge Agreement” has the meaning set forth in Section 2.1(a)(iii).

 

“Defease” means to deliver Defeasance Collateral as substitute Collateral for the Loan in accordance with Section 2.1; and the terms “Defeased” and “Defeasance” have meanings correlative to the foregoing.

 

“Eligible Account” means (i) a segregated account maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution, or (ii) a segregated trust account or accounts maintained with the corporate trust department of a federal depository institution or state-chartered depository institution which has an investment-grade rating and is subject to regulations regarding fiduciary funds on deposit under, or similar to, Title 12 of the Code of Federal Regulations Section 9.10(b) which, in either case, has corporate trust powers, acting in its fiduciary capacity.

 

“Eligible Institution” means (i) an institution whose commercial paper, short-term debt obligations or other short-term deposits are rated at least A–1, Prime-1 and/or F-1, as applicable, by each of the Rating Agencies and whose long-term senior unsecured debt obligations are rated at least A-, A and/or A2, as applicable, by each of the Rating Agencies, and whose deposits are insured by the FDIC, (ii) an institution with respect to which the Rating Condition is satisfied or (iii) solely in its capacity as a Blocked Account Bank, Huntington National Bank.

 

“Embargoed Person” has the meaning set forth in Section 4.39.

 

“Engineering Report” means a structural and seismic engineering report or reports (including a “probable maximum loss” calculation, if applicable) with respect to the Property prepared by an independent engineer approved by Lender and delivered to Lender in connection with the Loan, and any amendments or supplements thereto delivered to Lender.

 

  

5

  

 

“Environmental Claim” means any written notice, claim, proceeding, investigation or demand by any Person or Governmental Authority alleging or asserting liability with respect to Borrower or the Property arising out of, based on or resulting from (i) the alleged presence, Use or Release of any Hazardous Substance, (ii) any alleged violation of any Environmental Law, or (iii) any alleged injury or threat of injury to property, health or safety or to the environment caused by Hazardous Substances.

 

“Environmental Indemnity” means that certain environmental indemnity agreement executed by Borrower and the Sponsor as of the Closing Date, as the same may from time to time be modified or replaced in accordance herewith.

 

“Environmental Laws” means any and all present and future federal, state and local laws, statutes, ordinances, rules, regulations and the like, as well as common law, any judicial or administrative orders, decrees or judgments thereunder, and any permits, approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in effect, relating to the pollution, protection or cleanup of the environment, relating to the impact of Hazardous Substances on property, health or safety, or the Use or Release of Hazardous Substances, or relating to the liability for or costs of other actual or threatened danger to health or the environment.  The term “Environmental Law” includes, but is not limited to, the following statutes, as amended, any successors thereto, and any regulations promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues:  the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Materials Transportation Act; the Resource Conservation and Recovery Act (including Subtitle I relating to underground storage tanks); the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; and the River and Harbors Appropriation Act.  The term “Environmental Law” also includes, but is not limited to, any present and future federal state and local laws, statutes ordinances, rules, regulations and the like, as well as common law, conditioning transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental condition of a property; or requiring notification or disclosure of Releases of Hazardous Substances or other environmental conditions of a property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property.

 

“Environmental Reports” means “Phase I Environmental Site Assessments” as referred to in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E 1527-05 (and, if necessary, “Phase II Environmental Site Assessments”), prepared by an independent environmental auditor approved by Lender and delivered to Lender and any amendments or supplements thereto delivered to Lender, and shall also include any other environmental reports delivered to Lender pursuant to this Agreement and the Environmental Indemnity.

 

  

6

  

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder.

 

“ERISA Affiliate,” at any time, means each trade or business (whether or not incorporated) that would, at the time, be treated together with Borrower as a single employer under Title IV or Section 302 of ERISA or Section 412 of the Code.

 

“Event of Default” has the meaning set forth in Section 7.1.

 

“Excess Cash Flow Reserve Account” has the meaning set forth in Section 3.8(a).

 

“Exception Report” means the report prepared by Borrower and attached to this Agreement as Schedule B, setting forth any exceptions to the representations set forth in Article IV.

 

“Fiscal Quarter” means the three-month period ending on March 31, June 30, September 30 and December 31 of each year, or such other fiscal quarter of Borrower as Borrower may select from time to time with the prior consent of Lender, such consent not to be unreasonably withheld.

 

“Fiscal Year” means the 12-month period ending on December 31 of each year, or such other fiscal year of Borrower as Borrower may select from time to time with the prior consent of Lender, not to be unreasonably withheld.

 

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

 

“Force Majeure” means a delay due to acts of God, governmental restrictions, stays, judgments, orders, decrees, enemy actions, civil commotion, fire, casualty, strikes, work stoppage, shortages of labor or materials or similar causes beyond the reasonable control of Borrower; provided that, with respect to any of such circumstances, for the purposes of this Agreement, (1) any period of Force Majeure shall apply only to performance of the obligations necessarily affected by such circumstance and shall continue only so long as Borrower is continuously and diligently using all reasonable efforts to minimize the effect and duration thereof; and (2) Force Majeure shall not include the unavailability or insufficiency of funds.

 

“Form W-8BEN” means Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) of the Department of Treasury of the United States of America, and any successor form.

 

“Form W-8ECI” means Form W-8ECI (Certificate of Foreign Person’s Claim for Exemption from Withholding of Tax on Income Effectively Connected with the Conduct of a Trade or Business in the United States) of the Department of the Treasury of the United States of America, and any successor form.

 

“GAAP” means generally accepted accounting principles in the United States of America, consistently applied.

 

  

7

  

 

“Governmental Authority” means any federal, state, county, regional, local or municipal government, any bureau, department, agency or political subdivision thereof and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government (including any court).

 

“Guaranty” means that certain guaranty, dated as of the Closing Date, executed by Sponsor for the benefit of Lender.

 

“Hazardous Substances” means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, toxic substances, toxic pollutants, contaminants, pollutants or words of similar meaning or regulatory effect under any present or future Environmental Laws or that may have a negative impact on human health or the environment or the presence of which on, in or under the Property is prohibited under Environmental Law, including petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead and radon, and compounds containing them (including gasoline, diesel fuel, oil and lead-based paint), and radioactive materials, flammables and explosives and compounds containing them.

 

“Increased Costs” has the meaning set forth in Section 1.4(d).

 

“Indebtedness” means the Principal Indebtedness, together with interest and all other obligations and liabilities of Borrower under the Loan Documents, including all transaction costs, Yield Maintenance Premiums and other amounts due or to become due to Lender pursuant to this Agreement, under the Notes or in accordance with any of the other Loan Documents, and all other amounts, sums and expenses reimbursable by Borrower to Lender hereunder or pursuant to the Notes or any of the other Loan Documents.

 

“Indemnified Liabilities” has the meaning set forth in Section 9.19(b).

 

“Indemnified Parties” has the meaning set forth in Section 5.18.

 

“Independent Director” of any corporation or limited liability company means an individual who is provided by CT Corporation, Corporation Service Company, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation (or an affiliate or subsidiary of such companies) or, if none of those companies is then providing professional independent directors, another nationally-recognized company reasonably approved by Lender, in each case that is not an a affiliate of Borrower and that provides professional independent directors and other corporate services in the ordinary course of its business, and which individual is duly appointed as a member of the board of directors or board of managers of such corporation or limited liability company and is not, and has never been, and will not while serving as Independent Director be, any of the following:

 

(i)           a member, partner, equityholder, manager, director, officer or employee of Borrower, any Single-Purpose Equityholder or any of their respective equityholders or affiliates (other than as an independent director or manager of an affiliate of Borrower or any Single-Purpose Equityholder that is not in the direct chain of ownership of Borrower and that is required by a creditor to be a single purpose bankruptcy remote entity, provided that such independent director or manager is employed by a company that routinely provides professional independent directors or managers);

 

  

8

  

 

 (ii)           a creditor, supplier or service provider (including provider of professional services) to Borrower, any Single-Purpose Equityholder or any of their respective equityholders or affiliates (other than a nationally recognized company that routinely provides professional independent managers or directors and which also provides lien search and other similar services to Borrower, any Single-Purpose Equityholder or any of their respective equityholders or affiliates in the ordinary course of business);

 

(iii)           a family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service provider; or

 

(iv)           a Person that controls (whether directly, indirectly or otherwise) any of (i), (ii) or (iii) above.

 

“Initial Interest Rate” means 6.7645% per annum.

 

“Insurance Requirements” means, collectively, (i) all material terms of any insurance policy required pursuant to this Agreement and (ii) all material regulations and then-current standards applicable to or affecting the Property or any portion thereof or any use or condition thereof, which may, at any time, be recommended by the board of fire underwriters, if any, having jurisdiction over the Property, or any other body exercising similar functions.

 

“Interest Accrual Period” means each period from and including the sixth day of a calendar month through and including the fifth day of the immediately succeeding calendar month; provided, that, prior to a Securitization, Lender shall have the right, in connection with a change in the Payment Date in accordance with the definition thereof, to make a corresponding change to the Interest Accrual Period.  Notwithstanding the foregoing, the first Interest Accrual Period shall commence on and include the Closing Date.

 

“Interest Rate” means (i) with respect to the initial Note, the Initial Interest Rate, and (ii) with respect to each Note resulting from the bifurcation of the initial Note into multiple Notes pursuant to Section 1.1(c), the per annum interest rate of such Note as determined by Lender in accordance with such Section.

 

“Lease” means any lease, license, letting, concession, occupancy agreement, sublease to which Borrower is a party or has a consent right, or other agreement (whether written or oral and whether now or hereafter in effect) under which Borrower is a lessor, existing as of the Closing Date or hereafter entered into by Borrower, in each case pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space in the Property, and every modification or amendment thereof, and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto.

 

“Leasing Commissions” means leasing commissions required to be paid by Borrower in connection with the leasing of space to Tenants at the Property pursuant to Leases entered into by Borrower in accordance herewith and payable in accordance with third-party/arm’s-length brokerage agreements, provided that the commissions payable pursuant thereto are commercially reasonable based upon the then current brokerage market for property of a similar type and quality to the Property in the geographic market in which the Property is located.

 

  

9

  

 

“Legal Requirements” means all governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities (including Environmental Laws) affecting either Borrower or the Property or any portion thereof or the construction, ownership, use, alteration or operation thereof, or any portion thereof (whether now or hereafter enacted and in force), and all permits, licenses and authorizations and regulations relating thereto.

 

“Lender” has the meaning set forth in the first paragraph of this Agreement and in Section 9.7.

 

“Lien” means any mortgage, lien (statutory or other), pledge, hypothecation, assignment, preference, priority, security interest, or any other encumbrance or charge on or affecting any Collateral or any portion thereof, or any interest therein (including any conditional sale or other title retention agreement, any sale-leaseback, any financing lease or similar transaction having substantially the same economic effect as any of the foregoing, the filing of any financing statement or similar instrument under the Uniform Commercial Code or comparable law of any other jurisdiction, domestic or foreign, and mechanics’, materialmen’s and other similar liens and encumbrances, as well as any option to purchase, right of first refusal, right of first offer or similar right).

 

“Loan” has the meaning set forth in Section 1.1(a).

 

“Loan Amount” means $55,000,000.

 

“Loan Documents” means this Agreement, the Note, the Mortgage (and related financing statements), the Environmental Indemnity, the Subordination of Property Management Agreement, the Cash Management Agreement, any Blocked Account Agreement, the Cooperation Agreement, the Guaranty, any Qualified Guaranty, any Defeasance Pledge Agreement and all other agreements, instruments, certificates and documents necessary to effectuate the granting to Lender of first-priority Liens on the Collateral or otherwise in satisfaction of the requirements of this Agreement or the other documents listed above, as all of the aforesaid may be modified or replaced from time to time in accordance herewith.

 

“Lockout Period” means the period from the Closing Date to but excluding the first Payment Date following the earlier to occur of (i) the third anniversary of the Closing Date and (ii) the second anniversary of the date on which the entire Loan (including any subordinated interest therein) has been securitized pursuant to a Securitization or series of Securitizations.

 

“Loss Proceeds” means amounts, awards or payments payable to Borrower or Lender in respect of all or any portion of the Property in connection with a Casualty or Condemnation thereof (after the deduction therefrom and payment to Borrower and Lender, respectively, of any and all reasonable expenses incurred by Borrower and Lender in the recovery thereof, including all attorneys’ fees and disbursements, the fees of insurance experts and adjusters and the costs incurred in any litigation or arbitration with respect to such Casualty or Condemnation).

 

  

10

  

 

“Loss Proceeds Account” has the meaning set forth in Section 3.3(a).

 

“Loss Proceeds Threshold” means (x) at any time Borrower is Controlled by Sponsor or a Person meeting the requirements under clause (ii) of the definition of “Qualified Equityholder”, $1,000,000 and (y) at any other time, $500,000.

 

“Major Lease” means any Lease which (i) when aggregated with all other Leases at the Property with the same Tenant (or affiliated Tenants), and assuming the exercise of all expansion rights and all preferential rights to lease additional space contained in such Lease, is expected to cover more than 10,000 rentable square feet, (ii) contains an option or preferential right to purchase all or any portion of the Property, (iii) is with an affiliate of Borrower as Tenant, or (iv) is entered into during the continuance of an Event of Default.

 

“Material Adverse Effect” means a material adverse effect upon (i) the ability of Borrower to perform, or of Lender to enforce, any material provision of any Loan Document, (ii) the enforceability of any material provision of any Loan Document, or (iii) the value, Net Operating Income, use or enjoyment of the Property or the operation thereof.

 

“Material Agreements” means (x) each contract and agreement (other than Leases) relating to the Property, or otherwise imposing obligations on Borrower, under which Borrower would have the obligation to pay more than $50,000 per annum or which cannot be terminated by Borrower without cause upon 60 days’ notice or less without payment of a termination fee, or which is with an affiliate of Borrower, and (y) any reciprocal easement agreement, declaration of covenants, condominium documents, ground lease, parking agreement or other material Permitted Encumbrance.

 

“Material Alteration” means any Alteration to be performed by or on behalf of Borrower at the Property which (a) is reasonably likely to have a Material Adverse Effect, (b) is reasonably expected to cost in excess of $2,000,000, as determined by an independent architect, or (c) is reasonably expected to permit (or is reasonably likely to induce) any Tenant to terminate its Lease or abate rent.

 

“Maturity Date” means the Payment Date in May, 2020, or such earlier date as may result from acceleration of the Loan in accordance with this Agreement.

 

“Minimum Balance” has the meaning set forth in Section 3.2(a).

 

“Monthly Capital Expenditure Reserve Amount” means $15,711.27.

 

“Monthly TI/LC Amount” means $48,333.33.

 

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

 

  

11

  

 

“Mortgage” means that certain deed of trust, assignment of rents and leases, security agreement and fixture filing encumbering the Property executed by Borrower as of the Closing Date, as the same may from time to time be modified or replaced in accordance herewith.

 

“Net Operating Income” means, with respect to any Test Period, the excess of (i) Operating Income for such Test Period, minus (ii) Operating Expenses for such Test Period.

 

“Nonconsolidation Opinion” means the opinion letter, dated the Closing Date, delivered by Borrower’s counsel to Lender and addressing issues relating to substantive consolidation in bankruptcy.

 

“Non-Discretionary Items” has the meaning set forth in Section 5.17.

 

“Note(s)” means that certain promissory note, dated as of the Closing Date, made by Borrower to the order of Lender to evidence the Loan, as such note may be replaced by multiple Notes in accordance with Section 1.1(c) and as otherwise modified, assigned (in whole or in part) and/or replaced from time to time in accordance herewith.

 

“OFAC List” means the list of specially designated nationals and blocked persons subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of Foreign Assets Control and any other similar list maintained by the U.S. Treasury Department, Office of Foreign Assets Control pursuant to any applicable governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities, including, without limitation, trade embargo, economic sanctions, or other prohibitions imposed by Executive Order of the President of the United States.  The OFAC List currently is accessible through the internet website at www.treas.gov/ofac/t11sdn.pdf.

 

“Officer’s Certificate” means a certificate delivered to Lender which is signed by an authorized officer of Borrower and certifies the information therein to the best of such officer’s knowledge.  Each Officer’s Certificate required in connection with a disbursement from a Collateral Account (or any other reserve required by the Loan Documents) shall contain a statement that, to the best of such officer’s knowledge, all conditions precedent to such disbursement required by the Loan Documents have been satisfied.

 

“Operating Expenses” means, for any period, all operating, renting, administrative, management, legal and other ordinary expenses of Borrower during such period, determined in accordance with GAAP; provided, however, that such expenses shall not include (i) depreciation, amortization or other noncash items (other than expenses that are due and payable but not yet paid), (ii) interest, principal or any other sums due and owing with respect to the Loan, (iii) income taxes or other taxes in the nature of income taxes, (iv) Capital Expenditures, (v) equity distributions or (vi) any other extraordinary or non-recurring items.

 

“Operating Income” means, for any period, all operating income of Borrower from the Property during such period, determined in accordance with GAAP (but without straight-lining of rents), other than (i) Loss Proceeds (but Operating Income will include rental loss insurance proceeds to the extent allocable to such period), (ii) any revenue attributable to a Lease to the extent it is paid more than 30 days prior to the due date, (iii) any interest income from any source, (iv) any repayments received from any third party of principal loaned or advanced to such third party by Borrower, (v) any proceeds resulting from the Transfer of all or any portion of the Property, (vi) sales, use and occupancy or other taxes on receipts required to be accounted for by Borrower to any government or governmental agency, (vii) Termination Fees, and (viii) any other extraordinary or non-recurring items.

 

  

12

  

 

“Participation” has the meaning set forth in Section 9.7(b).

 

“Payment Date” means, with respect to each Interest Accrual Period, the first day of the calendar month in which such Interest Accrual Period ends (or, if such day is not a Business Day, the first preceding Business Day); provided, that prior to a Securitization, Lender shall have the right to change the Payment Date so long as a corresponding change to the Interest Accrual Period is also made.  Notwithstanding the foregoing, the Maturity Date shall be the second to last Business Day of the Interest Accrual Period in which the Maturity Date falls.

 

“Permits” means all licenses, permits, variances and certificates used in connection with the ownership, operation, use or occupancy of the Property (including certificates of occupancy, business licenses, state health department licenses, licenses to conduct business and all such other permits, licenses and rights, obtained from any Governmental Authority or private Person concerning ownership, operation, use or occupancy of the Property).

 

“Permitted Debt” means:

 

(i)             the Indebtedness;

 

(ii)            Trade Payables not represented by a note, customarily paid by Borrower within 60 days of incurrence and in fact not more than 60 days outstanding, which are incurred in the ordinary course of Borrower’s ownership and operation of the Property, in amounts reasonable and customary for similar properties and not exceeding 2.0% of the Loan Amount in the aggregate; and

 

(iii)           debt incurred in the ordinary course of Borrower’s business to finance equipment and other personal property used on the Property the removal of which would not materially damage any of the improvements thereon or materially impair the value of such improvements, provided that such debt is not evidenced by a promissory note executed by Borrower, is non-recourse to Borrower, and is not secured by any property other than the item of equipment or personal property so financed.

 

“Permitted Encumbrances” means:

 

(i)             the Liens created by the Loan Documents;

 

(ii)            all Liens and other matters specifically disclosed on Schedule B of the Qualified Title Insurance Policy;

 

(iii)           Liens, if any, for Taxes not yet delinquent;

 

  

13

  

 

(iv)           mechanics’, materialmen’s or similar Liens, if any, and Liens for delinquent taxes or impositions, in each case only if being contested in good faith and by appropriate proceedings, provided that no foreclosure of such Lien has been commenced and provided further that either (a) each such Lien is released or discharged of record or fully insured over by the title insurance company issuing the Qualified Title Insurance Policy within 45 days of after Borrower shall have received notice of its creation, or (b) Borrower deposits with Lender, by the expiration of such 45-day period, an amount equal to 125% of the dollar amount of such Lien or a bond in the aforementioned amount from such surety, and upon such terms and conditions, as is reasonably satisfactory to Lender, as security for the payment or release of such Lien; and

 

(v)            rights of existing and future Tenants as tenants only pursuant to written Leases entered into in conformity with the provisions of this Agreement.

 

 

“Permitted Investments” means the following, subject to the qualifications hereinafter set forth:

 

(i)             obligations of, or obligations directly and unconditionally guaranteed as to principal and interest by, the U.S. government or any agency or instrumentality thereof,  when such obligations are backed by the full faith and credit of the United States of America and have maturities not in excess of one year;

 

(ii)            federal funds, unsecured certificates of deposit, time deposits, banker’s acceptances, and repurchase agreements, each having maturities of not more than 90 days, of any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia, the short-term debt obligations of which are rated A-1+ by S&P, F1+ by Fitch and P-1 by Moody’s (and if the term is between one and three months A1 by Moody’s) and, if it has a term in excess of three months, the long-term debt obligations of which are rated AAA (or the equivalent) by each of the Rating Agencies, and that (a) is at least “adequately capitalized” (as defined in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as defined in such regulations) of not less than $1,000,000,000;

 

(iii)           deposits that are fully insured by the Federal Deposit Insurance Corp. (FDIC);

 

(iv)           commercial paper rated A–1+ by S&P, F1+ by Fitch and P-1 Moody’s (and if the term is between one and three months A1 by Moody’s) by each of the Rating Agencies and having a maturity of not more than 90 days;

 

(v)           any money market funds that (a) has substantially all of its assets invested continuously in the types of investments referred to in clause (i) above, (b) has net assets of not less than $5,000,000,000, and (c) has a rating of AAAm or AAAm-G from S&P, Aaa by Moody’s and the highest rating obtainable from Fitch; and

 

(vi)           such other investments as to which the Rating Condition has been satisfied.

 

  

14

  

 

Notwithstanding the foregoing, “Permitted Investments” (i) shall exclude any security with the Standard & Poor’s “r” symbol (or any other Rating Agency’s corresponding symbol) attached to the rating (indicating high volatility or dramatic fluctuations in their expected returns because of market risk), as well as any mortgage-backed securities and any security of the type commonly known as “strips”; (ii) shall not have maturities in excess of one year; (iii) shall be limited to those instruments that have a predetermined fixed dollar of principal due at maturity that cannot vary or change; and (iv) shall exclude any investment where the right to receive principal and interest derived from the underlying investment provides a yield to maturity in excess of 120% of the yield to maturity at par of such underlying investment.  Interest may either be fixed or variable, and any variable interest must be tied to a single interest rate index plus a single fixed spread (if any), and move proportionately with that index.  No investment shall be made which requires a payment above par for an obligation if the obligation may be prepaid at the option of the issuer thereof prior to its maturity.  All investments shall mature or be redeemable upon the option of the holder thereof on or prior to the earlier of (x) three months from the date of their purchase or (y) the Business Day preceding the day before the date such amounts are required to be applied hereunder.

 

“Person” means any natural person, corporation, limited liability company, partnership, joint venture, estate, trust, unincorporated association or Governmental Authority and any fiduciary acting in such capacity on behalf of any of the foregoing.

 

“Plan Assets” means assets of any (i) employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title I of ERISA, (ii) plan (as defined in Section 4975(e)(1) of the Code) subject to Section 4975 of the Code, or (iii) governmental plan (as defined in Section 3(32) of ERISA) subject to federal, state or local laws, rules or regulations substantially similar to Title I of ERISA or Section 4975 of the Code.

 

“Policies” has the meaning set forth in Section 5.15(b).

 

“Prepayment Period” means the final six Interest Accrual Periods prior to the Maturity Date.

 

“Prime Rate” means the “prime rate” published in the “Money Rates” section of The Wall Street Journal.  If The Wall Street Journal ceases to publish the “prime rate,” then Lender shall select an equivalent publication that publishes such “prime rate,” and if such “prime rate” is no longer generally published or is limited, regulated or administered by a governmental or quasi-governmental body, then Lender shall reasonably select a comparable interest rate index.

 

“Principal Indebtedness” means the principal balance of the Loan outstanding from time to time.

 

“Prior Loan” has the meaning set forth in Section 4.17(c).

 

“Prohibited Change of Control” means the occurrence of either or both of the following:  (i) the failure of Borrower to be Controlled by one or more Qualified Equityholders (individually or collectively), or (ii) the failure of the Single-Purpose Equityholder (if any) to be Controlled by the same Qualified Equityholders that Control Borrower.

 

  

15

  

 

“Property” means the real property described on Schedule A, together with all buildings and other improvements thereon.

 

“Qualified Equityholder” means (i) Sponsor, or (ii) a bank, saving and loan association, investment bank, insurance company, trust company, commercial credit corporation, pension plan, pension fund or pension advisory firm, mutual fund, government entity or plan, real estate company, investment fund or an institution substantially similar to any of the foregoing, provided in each case under this clause (ii) that such Person (x) has total assets (in name or under management) in excess of $1,500,000,000 and (except with respect to a pension advisory firm or similar fiduciary) capital/statutory surplus or shareholder’s equity in excess of $250,000,000 (in both cases, exclusive of the Property), and (y) is regularly engaged in the business of owning and operating comparable properties in major metropolitan areas, or (iii) any other Person approved by Lender with respect to which the Rating Condition is satisfied.

 

“Qualified Guarantee” means a guarantee from Sponsor in favor of Lender, in form and substance reasonably satisfactory to Lender; provided, however, that a guarantee shall cease to be a Qualified Guarantee at any time that the Tangible Net Worth of Sponsor shall fail to equal or exceed $100,000,000.

 

“Qualified Letter of Credit” shall mean an irrevocable, unconditional, freely transferable, clean sight draft letter of credit in favor of Lender, with respect to which Borrower has no reimbursement obligation, entitling Lender to draw thereon in New York, New York, issued by KeyBank or another domestic Eligible Institution.

 

“Qualified Successor Borrower” means a Single-Purpose Entity that is Controlled by one or more Qualified Equityholders.

 

“Qualified Survey” means current title surveys of the Property, certified to Borrower, the title company issuing the Qualified Title Insurance Policy and Lender and their respective successors and assigns, in form and substance reasonably satisfactory to Lender.

 

“Qualified Title Insurance Policy” means an ALTA extended coverage mortgagee’s title insurance policy in form and substance reasonably satisfactory to Lender.

 

“Rating Agency” shall mean, prior to the final Securitization of the Loan, each of S&P, Moody’s and Fitch, or any other nationally-recognized statistical rating agency which has been designated by Lender and, after the final Securitization of the Loan, shall mean any of the foregoing that have rated and continue to rate any of the Certificates.

 

 “Rating Condition” means, with respect to any proposed action, the receipt by Lender of confirmation in writing from each of the Rating Agencies that such action shall not result, in and of itself, in a downgrade, withdrawal, or qualification of any rating then assigned to any outstanding Certificates; except that if no portion of the Loan has been securitized pursuant to a Securitization rated by the Rating Agencies, then “Rating Condition” shall instead mean the receipt of prior written approval of both (x) the applicable Rating Agencies (if and to the extent that any portion of the Loan has been securitized pursuant to a Securitization or series of Securitizations rated by such Rating Agencies), and (y) Lender in its sole discretion.  No Rating Condition shall be regarded as having been satisfied unless and until any conditions imposed on the effectiveness of any confirmation from any Rating Agency shall have been satisfied.

 

  

16

  

 

“Regulatory Change” means any change after the Closing Date in federal, state or foreign laws or regulations or the adoption or the making, after such date, of any interpretations, directives or requests applying to a class of banks or companies controlling banks, including Lender, of or under any federal, state or foreign laws or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof.

 

“Release” with respect to any Hazardous Substance means any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Substances into the indoor or outdoor environment (including the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata).

 

“Rent Roll” has the meaning set forth in Section 4.14(a).

 

“Revenues” means all rents  (including percentage rent), rent equivalents, moneys payable as damages pursuant to a Lease or in lieu of rent or rent equivalents (including all Termination Fees), royalties (including all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, deposits (including security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower from any and all sources including any obligations now existing or hereafter arising or created out of the sale, lease, sublease, license, concession or other grant of the right of the use and occupancy of property or rendering of services by Borrower and proceeds, if any, from business interruption or other loss of income insurance.

 

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

 

“Securitization” means a transaction in which all or any portion of the Loan is deposited into one or more trusts which issue Certificates to investors, or a similar transaction.

 

“Securitization Vehicle” means the issuer of Certificates in a Securitization of the Loan.

 

“Service” means the Internal Revenue Service or any successor agency thereto.

 

“Servicer” means the entity or entities appointed by Lender from time to time to serve as servicer and/or special servicer of the Loan.  If at any time no entity is so appointed, the term “Servicer” shall be deemed to refer to Lender.

 

“Single Member LLC” means a limited liability company which either (x) has only one member, or (y) has multiple members, none of which is a Single-Purpose Equityholder.

 

  

17

  

 

“Single-Purpose Entity” means a Person which (a) was formed under the laws of the State of Delaware solely for the purpose of acquiring and holding (i) an ownership interest in the Property (or, if applicable, Defeasance Collateral), or (ii) in the case of a Single-Purpose Equityholder, an ownership interest in the Borrower (or, if applicable, Defeasance Collateral), (b) does not engage in any business unrelated to (i) the Property (or, if applicable, Defeasance Collateral), or (ii) in the case of a Single-Purpose Equityholder, its ownership interest in the Borrower (or, if applicable, Defeasance Collateral), (c) does not have any assets other than those related to (i) its interest in the Property (or, if applicable, Defeasance Collateral), or (ii) in the case of a Single-Purpose Equityholder, its ownership interest in the Borrower (or, if applicable, Defeasance Collateral), (d) does not have any Debt other than, in the case of Borrower, Permitted Debt, (e) maintains books, accounts, records, financial statements, stationery, invoices and checks which are separate and apart from those of any other Person (except that such Person’s financial position, assets, results of operations and cash flows may be included in the consolidated financial statements of an affiliate of such Person in accordance with GAAP, provided that any such consolidated financial statements shall contain a note indicating that such Person and its affiliates are separate legal entities and maintain records, books of account separate and apart from any other Person), (f) is subject to and complies with all of the limitations on powers and separateness requirements set forth in the organizational documentation of such Person as of the Closing Date, (g) holds itself out as being a Person separate and apart from each other Person and not as a division or part of another Person, (h) conducts its business in its own name (except for services rendered under a management agreement with an affiliate, so long as the manager, or equivalent thereof, under such management agreement holds itself out as an agent of such Person), (i) exercises reasonable efforts to correct any known misunderstanding actually known to it regarding its separate identity, and maintains an arm’s-length relationship with its affiliates, (j) pays its own liabilities out of its own funds (including the salaries of its own employees) and reasonably allocates any overhead that is shared with an affiliate, including paying for shared office space and services performed by any officer or employee of an affiliate, (k) maintains a sufficient number of employees in light of its contemplated business operations, (l) conducts its business so that the assumptions made with respect to it which are contained in the Nonconsolidation Opinion shall at all times be true and correct in all material respects, (m) maintains its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person, (n) observes all applicable entity-level formalities in all material respects, (o) does not commingle its assets with those of any other Person and holds such assets in its own name, (p) does not assume, guarantee or become obligated for the debts of any other Person, and does not hold out its credit as being available to satisfy the obligations or securities of others, (q) does not acquire obligations or securities of its shareholders, members or partners, (r) does not pledge its assets for the benefit of any other Person and does not make any loans or advances to any Person, (s) maintains adequate capital in light of its contemplated business operations, (t) has two Independent Directors on its board of directors or board of managers, or, in the case of a limited partnership, has a Single-Purpose Equityholder with two Independent Directors on such Single-Purpose Equityholder’s board of directors or board of managers, and has organizational documents that prohibit replacing any Independent Director without giving at least two Business Days’ prior written notice to Lender, (u) has by-laws or an operating agreement, or, in the case of a limited partnership, has a Single-Purpose Equityholder with by-laws or an operating agreement, which provides that, for so long as the Loan is outstanding, such Person shall not take or consent to any of the following actions except to the extent expressly permitted in this Agreement and the other Loan Documents:

 

  

18

  

(i)             the dissolution, liquidation, consolidation, merger or sale of all or substantially all of its assets (and, in the case of a Single-Purpose Equityholder, the assets of the Borrower);

 

(ii)            the engagement by such Person (and, in the case of a Single-Purpose Equityholder, the engagement by the Borrower) in any business other than the acquisition, development, management, leasing, ownership, maintenance and operation of the Property and activities incidental thereto (and, in the case of a Single-Purpose Equityholder, activities incidental to the acquisition and ownership of its interest in the Borrower);

 

(iii)           the filing, or consent to the filing, of a bankruptcy or insolvency petition, any general assignment for the benefit of creditors or the institution of any other insolvency proceeding, or the seeking or consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official in respect of such Person without the affirmative vote of both of its Independent Directors (and, in the case of a Single-Purpose Equityholder, in respect of the Borrower without the affirmative vote of both of such Single-Purpose Equityholder’s Independent Directors); and

 

(iv)           any amendment or modification of any provision of its (and, in the case of a Single-Purpose Equityholder, the Borrower’s) organizational documents relating to qualification as a “Single-Purpose Entity”,

 

and (v) if such entity is a Single Member LLC, has organizational documents which provide that upon the occurrence of any event (other than a permitted equity transfer) that causes its sole member to cease to be a member while the Loan is outstanding, at least one of its Independent Directors shall automatically be admitted as the sole member of the Single Member LLC and shall preserve and continue the existence of the Single Member LLC without dissolution.

 

“Single-Purpose Equityholder” means a Single-Purpose Entity that (x) is a limited liability company or corporation formed under the laws of the State of Delaware, (y) owns at least a 1% direct equity interest in Borrower, and (z) serves as the general partner or managing member of Borrower.

 

“Specialty Leases” means (i) special lease agreements or licenses having a term of no more than 36 months pursuant to which Borrower has the unilateral right to terminate the term thereof upon notice of 60 days or less to the occupant, lessee or licensee thereunder, and (ii) special lease agreements or licenses having a term of no more than 13 months pursuant to which Borrower has the unilateral right to terminate the term thereof upon notice of 30 days or less to the occupant, lessee or licensee thereunder.

 

 “Sponsor” means Glimcher Properties Limited Partnership.

 

  

19

  

 

“Subordination of Property Management Agreement” means that certain consent and agreement of manager and subordination of management agreement executed by Borrower and the Approved Property Manager as of the Closing Date, as the same may from time to time be modified or replaced in accordance herewith.

 

“Tangible Net Worth” means total assets, excluding intangible assets, minus total liabilities, determined on a consolidated basis and in accordance with generally accepted accounting principles.

 

“Taxes” means all real estate and personal property taxes, assessments, fees, taxes on rents or rentals, water rates or sewer rents, facilities and other governmental, municipal and utility district charges or other similar taxes or assessments now or hereafter levied or assessed or imposed against the Property or Borrower with respect to the Property or rents therefrom or which may become Liens upon the Property, without deduction for any amounts reimbursable to Borrower by third parties.

 

“Tenant” means any Person liable by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits) pursuant to a Lease.

 

“Tenant Improvements” means, collectively, (i) tenant improvements to be undertaken for any Tenant which are required to be completed by or on behalf of Borrower pursuant to the terms of such Tenant’s Lease, and (ii) tenant improvements paid or reimbursed through  allowances to a Tenant pursuant to such Tenant’s Lease.

 

“Tenant Notice” has the meaning set forth in Section 3.1(b).

 

“Termination Fee” has the meaning set forth in Section 3.5(d).

 

“Test Period” means each 12-month period ending on the last day of a Fiscal Quarter.

 

“TI/LC Reserve Account” has the meaning set forth in Section 3.5(a).

 

“Trade Payables” means unsecured amounts payable by or on behalf of Borrower for or in respect of the operation of the Property in the ordinary course and which would under GAAP be regarded as ordinary expenses, including amounts payable to suppliers, vendors, contractors, mechanics, materialmen or other Persons providing property or services to the Property or Borrower and the capitalized amount of any ordinary-course financing leases.

 

“Transaction” means, collectively, the transactions contemplated and/or financed by the Loan Documents.

 

“Transfer” means (i) with respect to the Collateral, the sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, transfer or other whole or partial conveyance of all or any portion of the Property or any other portion of the Collateral or any direct or indirect interest therein to a third party, including granting of any purchase options, rights of first refusal, rights of first offer or similar rights in respect of any portion of the Property or the subjecting of any portion of the Property to restrictions on transfer (except that the conveyance of a space lease at the Property in accordance herewith shall not constitute a Transfer), and (ii) with respect to the Borrower, the sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, transfer or other whole or partial conveyance of any direct or indirect interest in Borrower (or its managing member or general partner, as applicable) or the right to receive cash distributions from Borrower.

 

  

20

  

 

“Treasury Constant Yield” means the arithmetic mean of the rates published as “Treasury Constant Maturities” as of 5:00 p.m., New York time, for the five Business Days preceding the date on which acceleration has been declared or, as applicable, the date on which the Casualty or Condemnation occurred, as shown on the USD screen of Reuters (or such other page as may replace that page on that service, or such other page or replacement therefor on any successor service), or if such service is not available, the Bloomberg Service (or any successor service), or if neither Reuters nor the Bloomberg Service is available, under Section 504 in the weekly statistical release designated H.15(519) (or any successor publication) published by the Board of Governors of the Federal Reserve System, for “On the Run” U.S. Treasury obligations corresponding to the sixth Payment Date prior to the scheduled Maturity Date.  If no such maturity shall so exactly correspond, yields for the two most closely corresponding published maturities shall be calculated pursuant to the foregoing sentence and the Treasury Constant Yield shall be interpolated or extrapolated (as applicable) from such yields on a straight-line basis (rounding, in the case of relevant periods, to the nearest month).

 

“Trigger Period” means any period from (i) the conclusion of any Test Period during which Net Operating Income is less than 85% of Closing Date NOI, to (ii) the conclusion of the second of any two Test Periods ending in consecutive Fiscal Quarters thereafter during each of which Test Periods Net Operating Income is at least 85% of Closing Date NOI.

 

“Unfunded Obligations” means the items described in Schedule D.

 

“Unfunded Obligations Account” has the meaning set forth in Section 3.7(a).

 

“Unfunded Obligations Amount” means $776,266.90.

 

“Use” means, with respect to any Hazardous Substance, the generation, manufacture, processing, distribution, handling, use, treatment, recycling or storage of such Hazardous Substance or transportation of such Hazardous Substance.

 

“U.S. Person” means a United States person within the meaning of Section 7701(a)(30) of the Code.

 

“U.S. Tax” means any present or future tax, assessment or other charge or levy imposed by or on behalf of the United States of America or any taxing authority thereof.

 

“Waste” means any material abuse or destructive use (whether by action or inaction) of the Property.

 

“Yield Maintenance Premium” shall mean, with respect to any payment of principal (or any portion thereof) after acceleration of the Loan following the occurrence of an Event of Default, the product of:

 

  

21

  

 

(A)           a fraction whose numerator is the amount so paid and whose denominator is the outstanding principal balance of the Loan before giving effect to such payment, times

 

(B)           the excess of (1) the sum of the respective present values, computed as of the date of such prepayment, of the remaining scheduled payments of principal and interest with respect to the Loan (assuming no prepayments or acceleration of the Loan), determined by discounting such payments to the date on which such payments are made at the Treasury Constant Yield, over (2) the outstanding principal balance of the Loan on such date immediately prior to such payment;

 

provided that the Yield Maintenance Premium shall be not less than 3% of the amount prepaid.

 

The calculation of the Yield Maintenance Premium shall be made by Lender and shall, absent manifest error, be final, conclusive and binding upon all parties.

 

(b)           Rules of Construction.  All references to sections, schedules and exhibits are to sections, schedules and exhibits in or to this Agreement unless otherwise specified.  Unless otherwise specified: (i) all meanings attributed to defined terms in this Agreement shall be equally applicable to both the singular and plural forms of the terms so defined, (ii) “including” means “including, but not limited to” and (iii) “mortgage” means a mortgage, deed of trust, deed to secure debt or similar instrument, as applicable, and “mortgagee” means the secured party under a mortgage, deed of trust, deed to secure debt or similar instrument.  All accounting terms not specifically defined in this Agreement shall be construed in accordance with GAAP, as the same may be modified in this Agreement.

 

  

22

  

 

ARTICLE I

 

GENERAL TERMS

 

1.1.           The Loan.

 

(a)           On the Closing Date, subject to the terms and conditions of this Agreement, Lender shall make a loan to Borrower (the “Loan”) in an amount equal to the Loan Amount.  The Loan shall initially be represented by a single Note which shall bear interest as described in this Agreement at a per annum rate equal to the Initial Interest Rate.

 

(b)           The Loan shall be secured by the Collateral.

 

(c)           Lender shall have the right at any time, at Lender’s sole discretion, to replace the initial Note with two or more replacement Notes, and the holder of each replacement Note shall similarly have the right at any time, at such holder’s sole discretion, to replace its Note with two or more replacement Notes.  Each replacement Note shall be in the form of the Note so replaced, but for its principal amount and Interest Rate.  The principal amount of each Note shall be determined by the applicable holder in its sole discretion, provided that the initial sum of the principal amounts of the replacement Notes shall equal the then-outstanding principal balance of the Notes that are so replaced.  The Interest Rate of each replacement Note shall be determined by the applicable holder in its sole discretion, provided that the initial weighted average of such Interest Rates, weighted on the basis of the principal balances of the respective Notes, shall initially equal the Interest Rate of the Note so replaced.  Borrower shall execute and return to Lender each such Note within two Business Days after Borrower’s receipt of an execution copy thereof, and Borrower’s failure to do so within such time period shall, at Lender’s election, constitute an immediate Event of Default hereunder.  Borrower hereby authorizes and appoints Lender as its attorney-in-fact to execute such replacement Notes on Borrower’s behalf should Borrower fail to do so.  The foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term of this Agreement.  Borrower hereby ratifies all actions that such attorney shall lawfully take or cause to be taken in accordance with this Section 1.1(c).  If requested by Lender, and at Lender’s expense (other than Borrower’s legal fees, which shall be the responsibility of Borrower), Borrower shall deliver to Lender, together with such replacement Notes, an opinion of counsel with respect to the due authorization and enforceability of such replacement Notes and confirming that the delivery of such replacement Notes does not alter the conclusions reached in the legal opinions delivered to Lender at Closing.

 

1.2.           Interest and Principal.

 

(a)           On each Payment Date, Borrower shall pay to Lender a constant monthly payment of $357,259.23, which amount shall be applied first toward the payment of interest on each Note for the applicable Interest Accrual Period at the applicable Interest Rate (except that, in each case, interest shall be payable on the Indebtedness, including due but unpaid interest, at the Default Rate with respect to any portion of such Interest Accrual Period falling during the continuance of an Event of Default, in which case the monthly payment shall be increased by the amount of Default Interest accrued on the Notes during the applicable Interest Accrual Period), and the balance shall be applied toward the reduction of the outstanding principal balances of the Notes pro rata in accordance with their then outstanding principal balances.  On the Closing Date, Borrower shall pay interest from and including the Closing Date through the end of the first Interest Accrual Period.  Interest payable hereunder shall be computed on the basis of a 360-day year and the actual number of days elapsed in the related Interest Accrual Period.

 

  

23

  

 

(b)           No prepayments of the Loan shall be permitted except for (i) prepayments resulting from Casualty or Condemnation as described in Section 5.16(f), and (ii) a prepayment of the Loan in whole (but not in part) during the Prepayment Period on not less than 30 days prior written notice; provided that any prepayment hereunder shall be accompanied by all interest accrued on the amount prepaid, plus the amount of interest that would have accrued thereon if the Loan had remained outstanding through the end of the Interest Accrual Period in which such prepayment occurs, plus all other amounts then due under the Loan Documents.  Borrower’s notice of prepayment shall create an obligation of Borrower to prepay the Loan as set forth therein, but may be rescinded with five days’ written notice to Lender (subject to payment of any reasonable out-of-pocket costs and expenses resulting from such rescission).  In addition, Defeasance shall be permitted after the expiration of the Lockout Period as described in Section 2.1.  The entire outstanding principal balance of the Loan, together with interest through the end of the applicable Interest Accrual Period and all other amounts then due under the Loan Documents, shall be due and payable by Borrower to Lender on the Maturity Date.

 

(c)           If all or any portion of the Principal Indebtedness is paid to Lender following acceleration of the Loan after the occurrence of an Event of Default, Borrower shall pay to Lender an amount equal to the applicable Yield Maintenance Premium.  Amounts received in respect of the Indebtedness during the continuance of an Event of Default shall be applied toward interest, principal and other components of the Indebtedness (in such order as Lender shall determine) before any such amounts are applied toward payment of Yield Maintenance Premiums, with the result that Yield Maintenance Premiums shall accrue as the Principal Indebtedness is repaid but no amount received from Borrower shall constitute payment of a Yield Maintenance Premium until the remainder of the Indebtedness shall have been paid in full.  Borrower acknowledges that (i) a prepayment will cause damage to Lender; (ii) the Yield Maintenance Premium is intended to compensate Lender for the loss of its investment and the expense incurred and time and effort associated with making the Loan, which will not be fully repaid if the Loan is prepaid; (iii) it will be extremely difficult and impractical to ascertain the extent of Lender’s damages caused by a prepayment after an acceleration or any other prepayment not permitted by the Loan Documents; and (iv) the Yield Maintenance Premium represents Lender’s and Borrower’s reasonable estimate of Lender’s damages from the prepayment and is not a penalty.

 

(d)           Any payments of interest and/or principal not paid when due hereunder shall bear interest at the applicable Default Rate and, when paid, shall be accompanied by a late fee in an amount equal to the lesser of five percent of such unpaid sum and the maximum amount permitted by applicable law in order to defray a portion of the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment.

 

  

24

  

 

1.3.           Method and Place of Payment.  Except as otherwise specifically provided in this Agreement, all payments and prepayments under this Agreement and the Notes (including any deposit into the Cash Management Account pursuant to Section 3.2(c)) shall be made to Lender not later than 11:00 a.m., New York City time, on the date when due and shall be made in lawful money of the United States of America by wire transfer in federal or other immediately available funds to the account specified from time to time by Lender.  Any funds received by Lender after such time shall be deemed to have been paid on the next succeeding Business Day.  Lender shall notify Borrower in writing of any changes in the account to which payments are to be made.  If the amount received from Borrower (or from the Cash Management Account pursuant to Section 3.2(b)) is less than the sum of all amounts then due and payable hereunder, such amount shall be applied, at Lender’s sole discretion, either toward the components of the Indebtedness (e.g., interest, principal and other amounts payable hereunder) and the Notes, in such sequence as Lender shall elect in its sole discretion, or toward the payment of Property expenses.

 

1.4.           Taxes; Regulatory Change.

 

(a)           Borrower agrees to indemnify Lender against any present or future stamp, documentary or other similar or related taxes or other similar or related charges now or hereafter imposed, levied, collected, withheld or assessed by any United States Governmental Authority by reason of the execution and delivery of the Loan Documents and any consents, waivers, amendments and enforcement of rights under the Loan Documents.

 

(b)           If Borrower is required by law to withhold or deduct any amount from any payment hereunder in respect of any U.S. Tax, Borrower shall withhold or deduct the appropriate amount, remit such amount to the appropriate Governmental Authority and pay to each Person to whom there has been an Assignment or Participation of a Loan and who is not a U.S. Person such additional amounts as are necessary in order that the net payment of any amount due to such non-U.S. Person hereunder after deduction for or withholding in respect of any U.S. Tax imposed with respect to such payment (or in lieu thereof, payment of such U.S. Tax by such non-U.S. Person), will not be less than the amount stated in this Agreement to be then due and payable; except that the foregoing obligation to pay such additional amounts shall not apply (i) to any assignee that has not complied with the obligations contained in Section 9.7(c), (ii) to any U.S. Taxes imposed solely by reason of the failure by such Person (or, if such Person is not the beneficial owner of the relevant Loan, such beneficial owner) to comply with applicable certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of America of such Person (or beneficial owner, as the case may be) if such compliance is required by statute or regulation of the United States of America as a precondition to relief or exemption from such U.S. Taxes; or (iii) with respect to any Person who is a fiduciary or partnership or other than the sole beneficial owner of such payment, to any U.S. Tax imposed with respect to payments made under any Note to a fiduciary or partnership to the extent that the beneficial owner or member of the partnership would not have been entitled to the additional amounts if such beneficial owner or member of the partnership had been the holder of the Note.

 

(c)           Within 30 days after paying any amount from which it is required by law to make any deduction or withholding, and within 30 days after it is required by law to remit such deduction or withholding to any relevant taxing or other authority, Borrower shall deliver to such non-U.S. Person satisfactory evidence of such deduction, withholding or payment (as the case may be).

 

  

25

  

 

(d)           If, as a result of any Regulatory Change, any reserve, special deposit or similar requirements relating to any extensions of credit or other assets of, or any deposits with, Lender or any holder of all or a portion of the Loan is imposed, modified or deemed applicable and the result is to increase the cost to such Lender or such holder of making or holding the Loan, or to reduce the amount receivable by Lender or such holder hereunder in respect of any portion of the Loan by an amount deemed by Lender or such holder to be material (such increases in cost and reductions in amounts receivable, “Increased Costs”), then Borrower agrees that it will pay to Lender or such holder upon Lender’s or such holder’s request such additional amount or amounts as will compensate Lender and/or such holder for such Increased Costs to the extent that such Increased Costs are reasonably allocable to the Loan.  Lender will notify Borrower in writing of any event occurring after the Closing Date which will entitle Lender of any holder of the Loan to compensation pursuant to this Section 1.4(d) as promptly as practicable after it obtains knowledge thereof and determines to request such compensation and will designate a different lending office if such designation will avoid the need for, or reduce the amount of, such compensation and will not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender.  If such Lender shall fail to notify Borrower of any such event within 90 days following the end of the month during which such event occurred, then Borrower’s liability for any amounts described in this Section incurred by such Lender as a result of such event shall be limited to those attributable to the period occurring subsequent to the 90th day prior to the date upon which such Lender actually notified Borrower of the occurrence of such event.  Notwithstanding the foregoing, in no event shall Borrower be required to compensate Lender or any holder of the Loan for any portion of the income or franchise taxes of Lender or such holder, whether or not attributable to payments made by Borrower.  If a Lender requests compensation under this Section 1.4(d), Borrower may, by notice to Lender, require that such Lender furnish to Borrower a statement setting forth in reasonable detail the basis for requesting such compensation and the method for determining the amount thereof.

 

1.5.           Release.  Upon payment of the Indebtedness in full when permitted or required hereunder, Lender shall execute instruments prepared by Borrower and reasonably satisfactory to Lender, which, at Borrower’s election: (a) release and discharge all Liens on all Collateral securing payment of the Indebtedness (subject to Borrower’s obligation to pay any associated fees and expenses), including all balances in the Collateral Accounts; or (b) assign such Liens (and the Loan Documents) to a new lender designated by Borrower.  Any release or assignment provided by Lender pursuant to this Section 1.5 shall be without recourse, representation or warranty of any kind.

 

ARTICLE II

 

DEFEASANCE, ASSUMPTION AND TRANSFER

 

2.1.           Defeasance.

 

  

26

  

 

(a)            On any date after the expiration of the Lockout Period, provided no Event of Default is then continuing and subject to the notice requirement described in Section 2.1(c), Borrower may obtain the release of the Collateral (other than the Defeasance Collateral) from the Liens of the Loan Documents upon the payment to Lender of all sums then due under the Loan Documents and the delivery of the following to Lender:

 

(i)             Defeasance Collateral sufficient to provide payments on or prior to, and in any event as close as possible to, all successive Payment Dates prior to the commencement of the Prepayment Period in an amount sufficient to make all payments of interest and principal due hereunder and to pay in full the then outstanding Principal Indebtedness on the first Payment Date in the Prepayment Period;

 

(ii)            written confirmation from an independent certified public accounting firm reasonably satisfactory to Lender that such Defeasance Collateral is sufficient to provide the payments described in clause (i) above;

 

 (iii)          a security agreement, in form and substance reasonably satisfactory to Lender, creating in favor of Lender a first priority perfected security interest in such Defeasance Collateral (a “Defeasance Pledge Agreement”);

 

(iv)           an opinion of counsel for Borrower, in form and substance reasonably satisfactory to Lender and delivered by counsel reasonably satisfactory to Lender, opining (1) that the Defeasance Pledge Agreement has been duly authorized and is enforceable against Borrower in accordance with its terms and that Lender has a perfected first priority security interest in such Defeasance Collateral; and (2) that the Defeasance does not constitute a “significant modification” of the Loan under Section 1001 of the Code or cause a tax to be imposed on the Securitization Vehicle;

 

(v)            if the Loan has been securitized, the Rating Condition with respect to such Defeasance shall have been satisfied;

 

(vi)           instruments reasonably satisfactory to Lender releasing and discharging or assigning to a third party Lender’s Liens on the Collateral (other than the Defeasance Collateral);

 

(vii)         such other customary certificates, opinions, documents or instruments as Lender and the Rating Agencies may reasonably request; and

 

(viii)        reimbursement for any costs and expenses incurred by Lender in connection with this Section 2.1 (including Rating Agency and Servicer fees and expenses, reasonable fees and expenses of legal counsel and any revenue, documentary stamp or intangible taxes or any other tax or charge due in connection herewith).

 

Lender shall reasonably cooperate with Borrower to avoid the incurrence of mortgage recording taxes in connection with a Defeasance.

 

(b)           At the time of Defeasance, the Loan shall be assumed by a bankruptcy-remote entity established or designated by Borrower in accordance with Lender’s reasonable requirements and subject to Lender’s reasonable approval, to which Borrower shall transfer all of the Defeasance Collateral (a “Defeasance Borrower”), such Defeasance Borrower shall have executed and delivered to Lender an assumption agreement in form and substance reasonably satisfactory to Lender, such Uniform Commercial Code financing statements as may be reasonably requested by Lender and legal opinions of counsel reasonably acceptable to Lender which are substantially equivalent to the opinions delivered to Lender on the Closing Date, including new nonconsolidation opinions reasonably satisfactory to Lender and satisfactory to the Rating Agencies, and Borrower and the Defeasance Borrower shall have delivered such other documents, certificates and legal opinions as Lender shall reasonably request, in which event Borrower shall be completely released and relieved of all of its obligations under the Loan Documents except those obligations which by their terms survive the repayment of the Loan.

 

  

27

  

 

(c)            Borrower must give Lender and each Rating Agency at least 30 days’ (and not more than 60 days’) prior written notice of any Defeasance under this Section 2.1, specifying the date on which the Defeasance is to occur.  If such Defeasance is not made on such date (x) Borrower’s notice of Defeasance will be deemed rescinded, and (y) Borrower shall on such date pay to Lender all reasonable losses, costs and expenses suffered by Lender as a consequence of such rescission.

 

(d)            Upon satisfaction of the requirements contained in this Section 2.1, Lender will execute and deliver to Borrower such instruments, prepared by Borrower and approved by Lender, as shall be necessary to release the Property from the Liens of the Loan Documents.

 

2.2.           Assumption.  At any time after the first anniversary of the Closing Date, the initial Borrower shall have the right to contemporaneously Transfer all of the Collateral to a Qualified Successor Borrower that will assume all of the obligations of Borrower hereunder (an “Assumption”), provided no Event of Default or material monetary Default is then continuing or would result therefrom and the following conditions are met to the reasonable satisfaction of Lender:

 

(i)             such Qualified Successor Borrower shall have executed and delivered to Lender an assumption agreement, in form and substance reasonably acceptable to Lender, evidencing its agreement to abide and be bound by the terms of the Loan Documents and containing representations substantially equivalent to those contained in Article IV, and such other representations (and evidence of the accuracy of such representations) as the Servicer shall reasonably request;

 

(ii)            such Uniform Commercial Code financing statements as may be reasonably requested by Lender shall be filed;

 

(iii)           a party satisfactory to Lender in its sole discretion assumes all obligations, liabilities, guarantees and indemnities of Sponsor and any other guarantor under the Loan Documents pursuant to documentation satisfactory to Lender;

 

(iv)           such Qualified Successor Borrower shall have delivered to Lender legal opinions of counsel reasonably acceptable to Lender which are equivalent to the opinions delivered to Lender on the Closing Date, including new nonconsolidation opinions which are reasonably satisfactory to Lender and satisfactory to each of the Rating Agencies; and Borrower and the Qualified Successor Borrower shall have delivered such other documents, certificates and legal opinions as Lender shall reasonably request;

 

  

28

  

 

(v)            such Qualified Successor Borrower shall have delivered to Lender all documents reasonably requested by it relating to the existence of such Qualified Successor Borrower and the due authorization of the Qualified Successor Borrower to assume the Loan and to execute and deliver the documents described in this Section 2.2, each in form and substance reasonably satisfactory to Lender, including a certified copy of the applicable resolutions from all appropriate persons, certified copies of the organizational documents of the Qualified Successor Borrower, together with all amendments thereto, and certificates of good standing or existence for the Qualified Successor Borrower issued as of a recent date by its state of organization and each other state where such entity, by the nature of its business, is required to qualify or register;

 

(vi)           the Qualified Title Insurance Policy shall have been properly endorsed to reflect the Transfer of the Property to the Qualified Successor Borrower;

 

(vii)         after giving effect to the Assumption, the Property shall continue to be managed by an Approved Property Manager;

 

(viii)        the Rating Condition shall have been satisfied with respect to the legal structure of the successor borrower, the documentation of the Assumption and the related legal opinions; and

 

(ix)           Borrower shall have paid to Lender a nonrefundable assumption fee in an amount equal to 1.0% of the Principal Indebtedness, and Borrower shall have reimbursed Lender for its reasonable out-of-pocket costs and expenses incurred in connection with such Assumption.

 

2.3           Transfers of Interests in Borrower.

 

(a)           No Transfers shall be permitted, except (i) as provided in Section 2.2 and Section 2.3(b); (ii) after the first anniversary of the Closing Date, Transfers of indirect interests in the Borrower for bona fide family and estate planning purposes, which Transfers shall not require Lender’s consent or require the payment of a fee, provided that (x) no Event of Default has occurred and is continuing, (y) any such Transfer does not result in a Prohibited Change of Control or an Event of Default under Section 7.1(f) and (z) if as a result of any such Transfer any party shall acquire more than 49% of the direct or indirect equity interest in Borrower or a Single-Purpose Equityholder (even if not constituting a Prohibited Change of Control), Borrower shall deliver to Lender with respect to such new equityholder a new non-consolidation opinion satisfactory to Lender and, if a Securitization has occurred, the Rating Agencies; (iii) Transfers of the stock in Glimcher Realty Trust, including, without limitation, Transfers through a national securities exchange such as the New York Stock Exchange, or in connection with the purchase of all of substantially all of the stock in Glimcher Realty Trust by a Qualified Equityholder, which  Transfers shall not require Lender’s consent or require the payment of a fee; and (iv) a transfer of any portion of the partnership interests in Sponsor to a Qualified Equityholder that acquires all or substantially all of the assets of Glimcher Realty Trust, which  transfer shall not require Lender’s consent or require the payment of a fee.

 

  

29

  

 

(b)            In addition to the foregoing, at any time after the first anniversary of the Closing Date, Transfers of indirect equity interests in Borrower shall be permitted without Lender’s consent, subject to and conditioned upon the following: (i) no Event of Default shall have occurred and be ongoing; (ii) Borrower shall have provided Lender with at least ten Business Day’s prior written notice of any such Transfer; (iii) for each such Transfer, Borrower shall have paid to Lender a transfer fee in an amount equal to 1.0% of the Principal Indebtedness, and Borrower shall have reimbursed Lender for its reasonable out-of-pocket costs and expenses incurred in connection with such Transfer; (iv) no such Transfer shall result in a Prohibited Change of Control or an Event of Default under Section 7.1(f); and (v) if as a result of any such Transfer any party shall acquire more than 49% of the direct or indirect equity interest in Borrower or a Single-Purpose Equityholder (even if not constituting a Prohibited Change of Control) (x) a party satisfactory to Lender in its sole discretion assumes all obligations, liabilities, guarantees and indemnities of Sponsor and any other guarantor under the Loan Documents pursuant to documentation satisfactory to Lender and (y) Borrower shall have delivered to Lender with respect to such new equityholder a new non-consolidation opinion satisfactory to Lender and, if a Securitization has occurred, the Rating Agencies.

 

(c)            For so long as Sponsor shall continue to Control Borrower, Sponsor shall be permitted at any time after the Closing Date, and without the payment of a fee, to pledge up to 49% of the direct equity interests in Borrower as security for Sponsor’s line of credit, provided that such line of credit is (i) fully recourse to the Sponsor and (ii) secured by substantial assets of Sponsor in addition to such pledge of direct equity interests in Borrower.

 

ARTICLE III

 

ACCOUNTS

 

3.1.           Cash Management Account.

 

(a)            On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank a cash management account into which income from the Property will be deposited (the “Cash Management Account”), which account shall be owned by Borrower but controlled by Lender.  As a condition precedent to the closing of the Loan, Borrower shall cause the Cash Management Bank to execute and deliver an agreement (as modified or replaced in accordance herewith, a “Cash Management Agreement”) which provides, inter alia, that no party other than Lender and Servicer shall have the right to withdraw funds from the Cash Management Account.  The fees and expenses of the Cash Management Bank shall be paid by Borrower.

 

 (b)           Within five Business Days following the Closing Date, Borrower shall deliver to each Tenant in the Property a written notice (a “Tenant Notice”) in the form of Exhibit B instructing that (i) all payments under the Leases shall thereafter be transmitted by them directly to, and deposited directly into, the Cash Management Account or a Blocked Account, and (ii) such instruction may not be rescinded unless and until such Tenant receives from Borrower or Lender a copy of Lender’s written consent to such rescission.  Upon request of Lender, Borrower shall send a copy of each such written notice to Lender.  Borrower shall redeliver such notices to each Tenant until such time as such Tenant complies therewith.  Borrower shall cause all cash Revenues relating to the Property and all other money received by Borrower or the Approved Property Manager with respect to the Property (other than tenant security deposits held in accordance with Legal Requirements) to be deposited in the Cash Management Account or a Blocked Account by the end of the first Business Day following Borrower’s or the Approved Property Manager’s receipt thereof.  “Blocked Account” means an Eligible Account maintained with a financial institution satisfactory to Lender and Borrower that enters into a blocked account agreement (as modified or replaced in accordance herewith, the “Blocked Account Agreement”) satisfactory to Lender pursuant to which such financial institution will remit, at the end of each Business Day, all amounts contained therein to an account specified by Lender (Lender hereby agreeing to specify the Cash Management Account so long as no Event of Default has occurred and is then continuing).

 

  

30

  

 

(c)            Lender shall have the right at any time, upon not less than 30 days’ prior written notice to Borrower, to replace the Cash Management Bank with any Eligible Institution at which Eligible Accounts may be maintained that will promptly execute and deliver to Lender a Cash Management Agreement substantially identical to the Cash Management Agreement executed at Closing.  In addition, during the continuance of an Event of Default or if the Blocked Account Bank fails to comply with the Blocked Account Agreement or ceases to be an Eligible Institution, Lender shall have the right at any time, upon not less than 30 days’ prior written notice to Borrower, to replace the Blocked Account Bank with any Eligible Institution at which Eligible Accounts may be maintained that will promptly execute and deliver to Lender a Blocked Account Agreement satisfactory to Lender.

 

3.2.           Distributions from Cash Management Account.

 

(a)           The Cash Management Agreement shall provide that the Cash Management Bank shall remit to an account specified by Borrower, at the end of each Business Day (or, at Borrower’s election, on a less frequent basis), the amount, if any, by which amounts then contained in the Cash Management Account exceed the aggregate amount required to be paid to or reserved with Lender on the next Payment Date pursuant hereto (the “Minimum Balance”); provided, however, that Lender shall terminate such remittances during the continuance of an Event of Default or Trigger Period upon notice to the Cash Management Bank.  Lender may notify the Cash Management Bank at any time of any change in the Minimum Balance.

 

(b)           On each Payment Date, provided no Event of Default has occurred and is continuing, Lender shall transfer amounts from the Cash Management Account, to the extent available therein, to make the following payments in the following order of priority:

 

(i)             to the Basic Carrying Costs Escrow Account, the amounts then required to be deposited therein pursuant to Section 3.4;

 

  

31

  

 

(ii)            to Lender, the amount of all scheduled or delinquent interest and principal on the Loan and all other amounts then due and payable under the Loan Documents (with any amounts in respect of principal paid last);

 

(iii)           during the continuance of a Trigger Period, to Borrower, an amount equal to the Budgeted Operating Expenses for the month in which such Payment Date occurs, provided that the amounts disbursed to Borrower pursuant to this clause (iii) shall be used by Borrower solely to pay Budgeted Operating Expenses for such month (reduced by the amount, if any, by which Budgeted Operating Expenses disbursed in the previous month exceeded actual operating expenses for such month) and provided further that no amounts will be disbursed to Borrower in respect of the fees of the Approved Property Manager to the extent such fees exceed 3% of Operating Income;

 

(iv)          to the TI/LC Reserve Account, any amount required to be deposited therein pursuant to Section 3.5;

 

(v)           during the continuance of a Trigger Period, all remaining amounts to the Excess Cash Flow Reserve Account; and

 

(vi)           if no Trigger Period is continuing, all remaining amounts to such accounts as Borrower may direct.

 

(c)            If on any Payment Date the amount in the Cash Management Account shall be insufficient to make all of the transfers described in Section 3.2(b)(i) through (iv), Borrower shall deposit into the Cash Management Account on such Payment Date the amount of such deficiency.  If Borrower shall fail to make such deposit, the same shall constitute an Event of Default and, in addition to all other rights and remedies provided for under the Loan Documents, Lender may disburse and apply the amounts in the Collateral Accounts in accordance with Section 3.9).

 

3.3.           Loss Proceeds Account.

 

(a)            On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the purpose of depositing any Loss Proceeds (the “Loss Proceeds Account”).

 

(b)            Provided no Event of Default is continuing, funds in the Loss Proceeds account shall be applied in accordance with Section 5.16.

 

3.4.           Basic Carrying Costs Escrow Account.

 

(a)            On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the purpose of reserving amounts payable by Borrower in respect of Taxes and insurance premiums (the “Basic Carrying Costs Escrow Account”).

 

  

32

  

 

(b)            On the Closing Date, the Basic Carrying Costs Escrow Account shall be funded in an amount equal to the sum of (i) an amount sufficient to pay all Taxes by the 30th day prior to the date they come due, assuming subsequent monthly fundings on Payment Dates of 1/12 of projected annual Taxes, plus (ii) an amount sufficient to pay all insurance premiums by the 30th day prior to the date they come due, assuming subsequent monthly fundings on Payment Dates of 1/12 of projected annual insurance premiums.

 

(c)            On each subsequent Payment Date, an additional deposit shall be made therein in an amount equal to the sum of:

 

(A)           1/12 of the Taxes that Lender reasonably estimates, based on information provided by Borrower, will be payable during the next ensuing 12 months, plus

 

(B)           1/12 of the insurance premiums that Lender reasonably estimates, based on information provided by Borrower, will be payable during the next ensuing 12 months;

 

provided, however, that if at any time Lender reasonably determines that the amount in the Basic Carrying Costs Escrow Account will not be sufficient to accumulate (upon payment of subsequent monthly amounts in accordance with the provisions of this Agreement) the full amount of all installments of Taxes and insurance premiums by the date on which such amounts come due, then Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to the Basic Carrying Costs Escrow Account by the amount that Lender reasonably estimates is sufficient to achieve such accumulation.

 

(d)            Borrower shall provide Lender with copies of all tax and insurance bills relating to the Property promptly after Borrower’s receipt thereof.  Lender will apply amounts in the Basic Carrying Costs Escrow Account toward the purposes for which such amounts are deposited therein.  In connection with the making of any payment from the Basic Carrying Costs Escrow Account, Lender may cause such payment to be made according to any bill, statement or estimate procured from the appropriate public office or insurance carrier, without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof unless given written advance notice by Borrower of such inaccuracy, invalidity or other contest.

 

(e)            If Lender so elects at any time, Borrower shall provide, at Borrower’s expense, a tax service contract for the term of the Loan issued by a tax reporting agency reasonably acceptable to Lender.  If Lender does not so elect, Borrower shall reimburse Lender for the cost of making annual tax searches throughout the term of the Loan.

 

(f)             Notwithstanding the foregoing, Borrower shall not be required to reserve funds in the Basic Carrying Costs Escrow Account in respect of insurance premiums, so long as (i) no Event of Default has occurred and is continuing and (ii) Borrower delivers evidence reasonably acceptable to Lender that the insurance required hereunder is maintained under a blanket insurance policy meeting the requirements set forth in Section 5.15 and that the applicable insurance premiums for the policy year have been paid in full in advance.

 

  

33

  

 

3.5.           TI/LC Reserve Account.

 

(a)            On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the purpose of reserving amounts in respect of Tenant Improvements and Leasing Commissions (the “TI/LC Reserve Account”).

 

(b)            On each Payment Date in which the amount contained in the TI/LC Reserve Account is less than $1,160,000, there shall be deposited into the TI/LC Reserve Account an amount equal to the Monthly TI/LC Amount.

 

(c)            Upon the request of Borrower at any time that no Event of Default is continuing (but not more often than once per calendar month), Lender shall cause disbursements to Borrower from the TI/LC Reserve Account to reimburse Borrower for Leasing Commissions and Tenant Improvement costs incurred by Borrower in connection with a new Lease (or Lease extension) entered into in accordance herewith, provided that:

 

(i)             Borrower shall deliver to Lender invoices evidencing that the costs for which such disbursements are requested are due and payable;

(ii)            Borrower shall deliver to Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or will be paid from the proceeds of the requested disbursement; and

(iii)           Lender may condition the making of a requested disbursement on (1) reasonable evidence establishing that Borrower has applied any amounts previously received by it in accordance with this Section for the expenses to which specific draws made hereunder relate, (2) a reasonably satisfactory site inspection, and (3) receipt of lien releases and waivers from any contractors, subcontractors and others with respect to such amounts.

 (d)           Whenever a Lease covering 2,500 square fee or more of gross leasable area is terminated, whether by buy-out, cancellation, default or otherwise, and Borrower receives any payment, fee or penalty in respect of such termination (a “Termination Fee”), Borrower shall promptly cause such Termination Fee to be deposited into the TI/LC Reserve Account.  Provided no Event of Default has occurred and is continuing, (i) Lender shall disburse such Termination Fee or portion thereof to Borrower at the written request of Borrower in respect of Leasing Commissions and Tenant Improvement costs incurred by Borrower in connection with a replacement Lease entered into in accordance with the terms of this Agreement in respect of the space covered by such terminated Lease and (ii) the remainder of such Termination Fee or portion thereof, if any, shall be remitted to the Cash Management Account after the space covered by such terminated Lease has been relet, the replacement Tenant is in occupancy and has commenced paying rent under the replacement Lease and all Leasing Commissions and Tenant Improvement costs relating to such space have been paid.

 

3.6.           Capital Expenditure Reserve Account.

 

  

34

  

 

(a)            On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the purpose of reserving amounts in respect of Capital Expenditures (the “Capital Expenditure Reserve Account”).

 

(b)            On each Payment Date, there shall be deposited into the Capital Expenditure Reserve Account an amount equal to the Monthly Capital Expenditure Reserve Amount.

 

(c)            Upon the request of Borrower at any time that no Event of Default is continuing (but not more often than once per calendar month), Lender shall cause disbursements to Borrower from the Capital Expenditure Reserve Account to reimburse Borrower for Capital Expenditures that are consistent with the Approved Annual Budget; provided that:

 

(i)             Borrower shall deliver to Lender invoices evidencing that the costs for which such disbursements are requested are due and payable;

(ii)            Borrower shall deliver to Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or will be paid from the proceeds of the requested disbursement; and

(iii)           Lender may condition the making of a requested disbursement on (1) reasonable evidence establishing that Borrower has applied any amounts previously received by it in accordance with this Section for the expenses to which specific draws made hereunder relate, (2) a reasonably satisfactory site inspection, and (3) receipt of lien releases and waivers from any contractors, subcontractors and others with respect to such amounts.

 

3.7.           Unfunded Obligations Account.

 

(a)            On or prior to the Closing Date, if the Unfunded Obligations Amount is greater than zero, Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the purpose of reserving for Unfunded Obligations required to be funded by Borrower (the “Unfunded Obligations Account”).

 

(b)            On the Closing Date, Borrower shall (x) deposit into the Unfunded Obligations Account, from the proceeds of the Loan, an amount equal to $276,236.90 and (y) deliver to Lender a Qualified Guaranty in an amount equal to $500,000, which in the aggregate constitutes the Unfunded Obligations Amount.  If, at any time, Borrower is required to deliver the Phase 2 Premises to the Tenant under that certain Lease Agreement, dated as of December 23, 2008, between Johnson City Venture, LLC, as landlord, and Forever 21 Retail, Inc., as tenant (the “Forever 21 Lease”), Borrower shall, within 5 Business Days of the effectiveness of such requirement, deposit into the Unfunded Obligations Account the amount of $132,405 in respect of Unfunded Obligations related to the delivery of such Phase 2 Premises, and the Tenant Improvements required under such Lease shall be deemed added to Schedule D of this Agreement as an Unfunded Obligation (for purposes of this Section 3.7, “Phase 2 Premises” shall have the meaning set forth in the Forever 21 Lease.

 

  

35

  

 

(c)            Borrower shall perform its obligations in respect of the Unfunded Obligations when and as due under the respective Leases or other applicable agreements.  Upon the request of Borrower at any time that no Event of Default is continuing (but not more often than once per calendar month), and to the extent the Unfunded Obligations Account has been funded in cash, Lender shall cause disbursements to Borrower from the Unfunded Obligations Account to reimburse Borrower for reasonable costs and expenses incurred in the performance of Unfunded Obligations (or, as applicable, shall permit the reduction of the amount of the Qualified Letter of Credit or the Qualified Guaranty, in either case, by the amount that would have been so disbursed, it being understood that reductions of the Unfunded Obligations Guaranty shall be made solely with respect to Unfunded Obligations under the J.C. Penney Lease and that no cash disbursements shall be made from the Unfunded Obligations Account with respect to such Lease), provided that

 

(i)             Borrower shall deliver to Lender invoices evidencing that the costs for which such disbursements are requested are due and payable;

(ii)            Borrower shall deliver to Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or will be paid from the proceeds of the requested disbursement; and

(iii)           Lender may condition the making of a requested disbursement on (1) reasonable evidence establishing that Borrower has applied any amounts previously received by it in accordance with this Section for the expenses to which specific draws made hereunder relate, (2) a reasonably satisfactory site inspection, and (3) receipt of lien releases and waivers from any contractors, subcontractors and others with respect to such amounts.

(d)            If Borrower satisfies its obligation under Section 3.7(b) by providing a letter of credit that at any time ceases to be a Qualified Letter of Credit or a guarantee that at any time ceases to be a Qualified Guaranty, Borrower shall, within 15 days thereafter, either (x) deliver to Lender a replacement Qualified Letter of Credit in the amount required under Section 3.7(b) or (y) deposit into the Unfunded Obligations Account the amount that would be contained therein had Borrower deposited the Unfunded Obligations Amount therein on the Closing Date and subsequently withdrawn therefrom all amounts that would have been permitted to be withdrawn therefrom pursuant to Section 3.7(c).  Lender shall be entitled to draw on any letter of credit delivered to Lender pursuant to this Section 3.7(d), and hold the proceeds of such draw as additional Collateral, immediately and without further notice, (a) upon the occurrence and during the continuance of any Event of Default, (b) if Borrower shall not have delivered to Lender, no less than 30 days prior to the termination of any letter of credit delivered to Lender pursuant to this Section 3.7(d), a replacement Qualified Letter of Credit, or (c) if Borrower shall not have delivered to Lender, within 15 days after the issuer of such Letter of Credit ceases to be an Eligible Institution, a replacement Qualified Letter of Credit.

 

(e)            Upon payment or performance, as applicable, of the Unfunded Obligations identified on any line on Schedule D, and provided no Event of Default is then continuing, the remainder of the portion of the Unfunded Obligations Account held for such line item (as shown adjacent to such line item on Schedule D) shall promptly be remitted to Borrower, except that any amounts in respect of free rent shall be remitted to the Cash Management Account.  Upon the payment or performance in full of all Unfunded Obligations, provided no Event of Default or Trigger Period is then continuing, any amounts then remaining in the Unfunded Obligations Account shall promptly be remitted to Borrower and the Unfunded Obligations Account will no longer be maintained (or, as applicable, the Unfunded Obligations Guaranty shall be cancelled and returned, or the Qualified Letter of Credit shall be returned or released).

 

  

36

  

 

3.8            Excess Cash Flow Reserve Account.

 

(a)            On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the deposit of amounts required to be deposited therein in accordance with Section 3.2(b)(v) (the “Excess Cash Flow Reserve Account”).

 

(b)           Provided that no Event of Default is then continuing, Lender shall release to the Cash Management Account all amounts then contained in the Excess Cash Flow Reserve Account on the first Payment Date after Borrower delivers to Lender evidence reasonably satisfactory to Lender establishing that no Trigger Period is then continuing.  Such a release shall not preclude the subsequent commencement of a Trigger Period and the deposit of amounts into the Excess Cash Flow Reserve Account as set forth in Section 3.2(b)(v).

 

3.9.           Account Collateral.

 

(a)            Borrower hereby grants a perfected first-priority security interest in favor of Lender in and to the Account Collateral as security for the Indebtedness, together with all rights of a secured party with respect thereto.  Each Collateral Account shall be an Eligible Account under the sole dominion and control of Lender and shall be in the name of Borrower, as pledgor, and Lender, as pledgee.  Borrower shall have no right to make withdrawals from any of the Collateral Accounts.  Funds in the Collateral Accounts shall not be commingled with any other monies at any time.  Borrower shall execute any additional documents that Lender in its reasonable discretion may require and shall provide all other evidence reasonably requested by Lender to evidence or perfect its first-priority security interest in the Account Collateral.  Funds in the Collateral Account shall be invested at Lender’s discretion only in Permitted Investments.  All income and gains from the investment of funds in the Collateral Accounts other than the Basic Carrying Costs Escrow Account shall be retained in the Collateral Accounts from which they were derived.  Unless otherwise required by applicable law, all income and gains from the investment of funds in the Basic Carrying Costs Escrow Account shall be for the account of Lender in consideration of its administration of such Collateral Account, and Lender shall have the right at any time to cause the Cash Management Bank to remit such amounts to Lender. After the Loan and all other Indebtedness have been paid in full, the Collateral Accounts shall be closed and the balances therein, if any, shall be paid to Borrower.

 

(b)           The insufficiency of amounts contained in the Collateral Accounts shall not relieve Borrower from its obligation to fulfill all covenants contained in the Loan Documents.

 

  

37

  

 

(c)            During the continuance of an Event of Default, Lender may, in its sole discretion, apply funds in the Collateral Accounts, and funds resulting from the liquidation of Permitted Investments contained in the Collateral Accounts, either toward the components of the Indebtedness (e.g., interest, principal and other amounts payable hereunder), the Loan and the Notes in such sequence as Lender shall elect in its sole discretion, and/or toward the payment of Property expenses.

 

3.10          Bankruptcy.  Borrower and Lender acknowledge and agree that upon the filing of a bankruptcy petition by or against Borrower under the Bankruptcy Code, the Account Collateral and the Revenues (whether then already in the Collateral Accounts, or then due or becoming due thereafter) shall be deemed not to be property of Borrower’s bankruptcy estate within the meaning of Section 541 of the Bankruptcy Code.  If, however, a court of competent jurisdiction determines that, notwithstanding the foregoing characterization of the Account Collateral and the Revenues by Borrower and Lender, the Account Collateral and/or the Revenues do constitute property of Borrower’s bankruptcy estate, then Borrower and Lender further acknowledge and agree that all such Revenues, whether due and payable before or after the filing of the petition, are and shall be cash collateral of Lender.  Borrower acknowledges that Lender does not consent to Borrower’s use of such cash collateral and that, in the event Lender elects (in its sole discretion) to give such consent, such consent shall only be effective if given in writing signed by Lender.  Except as provided in the immediately preceding sentence, Borrower shall not have the right to use or apply or require the use or application of such cash collateral (i) unless Borrower shall have received a court order authorizing the use of the same, and (ii) Borrower shall have provided such adequate protection to Lender as shall be required by the bankruptcy court in accordance with the Bankruptcy Code.

 

 ARTICLE IV

 

REPRESENTATIONS

 

Borrower represents to Lender that, as of the Closing Date, except as set forth in the Exception Report:

 

4.1.           Organization.

 

(a)            Borrower is duly organized, validly existing and in good standing under the laws of the State of Delaware, and is in good standing in each other jurisdiction where ownership of its properties or the conduct of its business requires it to be so, and Borrower has all power and authority under such laws and its organizational documents and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted.

 

(b)            Borrower has no subsidiaries and does not own any equity interest in any other Person.

 

(c)            The organizational chart contained in Exhibit A is true and correct as of the date hereof.

 

  

38

  

 

4.2.           Authorization.  Borrower has the power and authority to enter into this Agreement and the other Loan Documents, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated by the Loan Documents and has by proper action duly authorized the execution and delivery of the Loan Documents.

 

4.3.           No Conflicts.  Neither the execution and delivery of the Loan Documents, nor the consummation of the transactions contemplated therein, nor performance of and compliance with the terms and provisions thereof will (i) violate or conflict with any provision of its formation and governance documents, (ii) violate any law, regulation (including Regulation U, Regulation X or Regulation T), order, writ, judgment, injunction, decree or permit applicable to it, (iii) violate or conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, contract or other Material Agreement to which Borrower or Sponsor is a party or by which Borrower or Sponsor may be bound, or (iv) result in or require the creation of any Lien or other charge or encumbrance upon or with respect to the Collateral in favor of any party other than Lender.

 

4.4.           Consents.  No consent, approval, authorization or order of, or qualification with, any court or Governmental Authority is required in connection with the execution, delivery or performance by Borrower of this Agreement or the other Loan Documents, except for any of the foregoing which have already been obtained.

 

4.5.           Enforceable Obligations.  This Agreement and the other Loan Documents have been duly executed and delivered by Borrower and constitute Borrower’s legal, valid and binding obligations, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.  The Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense by Borrower, including the defense of usury.

 

4.6.           No Default.  No Default or Event of Default will exist immediately following the making of the Loan.

 

4.7.           Payment of Taxes.  Borrower has filed, or caused to be filed, all tax returns (federal, state, local and foreign) required to be filed and paid all amounts of taxes due (including interest and penalties) except for taxes which are not yet delinquent and has paid all other taxes, fees, assessments and other governmental charges (including mortgage recording taxes, documentary stamp taxes and intangible taxes) owing by it necessary to preserve the Liens in favor of Lender.

 

4.8.           Compliance with Law.  Borrower, the Property and the use thereof comply in all material respects with all applicable Insurance Requirements and Legal Requirements, including building and zoning ordinances and codes.  The Property conforms to current zoning requirements (including requirements relating to parking) and is neither an illegal nor a legal nonconforming use.  Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority the violation of which could adversely affect the Property or the condition (financial or otherwise) or business of Borrower.  There has not been committed by or on behalf of Borrower or, to the best of Borrower’s knowledge, any other person in occupancy of or involved with the operation or use of the Property, any act or omission affording any federal Governmental Authority or any state or local Governmental Authority the right of forfeiture as against the Property or any portion thereof or any monies paid in performance of its obligations under any of the Loan Documents.  Neither Borrower nor Sponsor has purchased any portion of the Property with proceeds of any illegal activity.

 

  

39

  

 

4.9.           ERISA.  Neither Borrower nor any ERISA Affiliate of Borrower has incurred or could be subjected to any liability under Title IV or Section 302 of ERISA or Section 412 of the Code or maintains or contributes to, or is or has been required to maintain or contribute to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV or Section 302 of ERISA or Section 412 of the Code.  The consummation of the transactions contemplated by this Agreement will not constitute or result in any non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or substantially similar provisions under federal, state or local laws, rules or regulations.

 

4.10.         Investment Company Act.  Borrower is not an “investment company”, or a company “controlled” by an “investment company”, registered or required to be registered under the Investment Company Act of 1940, as amended.

 

4.11.         No Bankruptcy Filing.  Borrower is not contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property.  Borrower does not have knowledge of any Person contemplating the filing of any such petition against it.  During the ten year period preceding the Closing Date, no petition in bankruptcy has been filed by or against Borrower, Borrower’s Single-Purpose Equityholder or Sponsor, or any affiliate of Borrower, Borrower’s Single-Purpose Equityholder or Sponsor, or any person who owns or controls, directly or indirectly, ten percent or more of the beneficial ownership interests of Borrower, Borrower’s Single-Purpose Equityholder or Sponsor.

 

4.12.         Other Debt.  Borrower does not have outstanding any Debt other than Permitted Debt.

 

4.13.         Litigation.  There are no actions, suits, proceedings, arbitrations or governmental investigations by or before any Governmental Authority or other court or agency now pending, and to the best of Borrower’s knowledge there are no such actions, suits, proceedings, arbitrations or governmental investigations threatened against or affecting Borrower or the Property, in each case, except as listed in the Exception Report (and none of the matters listed in the Exception Report, even if determined against Borrower or the Property, could reasonably be expected to result in a Material Adverse Effect).

 

  

40

  

 

4.14.         Leases; Material Agreements.

 

(a)            Borrower has delivered to Lender true and complete copies of all Leases.  No person has any possessory interest in the Property or right to occupy the same except under and pursuant to the provisions of the Leases.  The rent roll attached to this Agreement as Schedule E (the “Rent Roll”) is true and correct as of the Closing Date.  Except as indicated on the Rent Roll and/or the Exception Report, no security deposits are being held by Borrower, no Tenant has any extension or renewal options, no Tenant or other party has any option, right of first refusal or similar preferential right to purchase or lease all or any portion of the Property, no fixed rent has been paid more than 30 days in advance of its due date and no payments of rent are more than 30 days delinquent.

 

(b)            (i) Borrower is the sole owner of the entire lessor’s interest in the Leases, (ii) the Leases are valid and enforceable and in full force and effect, (iii) all of the Leases are arm’s-length agreements with bona fide, independent third parties, (iv) Except as indicated on the Rent Roll and/or the Exception Report, all Revenues due under Leases have been paid in full or are not more than 30 days delinquent as of the date of the Rent Roll, (v) the terms of all alterations, modifications and amendments to the Leases are reflected in the written documents delivered to Lender prior to the Closing Date, (vi) none of the Revenues reserved in the Leases have been assigned or otherwise pledged or hypothecated (except such pledge or hypothecation that will be fully terminated and released in connection with the filing and recordation of the Mortgages and except for the Liens contemplated pursuant to the Loan Documents).

 

(c)            Except as indicated in Schedule D or contained in any tenant estoppel certificate delivered to Lender prior to the Closing, (i) to Borrower’s knowledge, no party under any Lease is in default in any material respect, (ii) there exist no offsets or defenses to the payment of any portion of the Revenues, (iii) all work to be performed by the landlord under the Leases has been substantially performed, all contributions to be made by the landlord to the Tenants thereunder have been made, all other conditions to each Tenant’s obligations thereunder have been satisfied, no Tenant has the right to require Borrower to perform or finance Tenant Improvements or Material Alterations and no Leasing Commissions are owed or would be owed upon the exercise of any Tenant’s existing renewal or expansion options, and Borrower has no other monetary obligation to any Tenant under any Lease, and (iv) Borrower has received no notice from any Tenant challenging the validity or enforceability of any Lease.

 

(d)            There are no Material Agreements except as described in Schedule F.  Borrower has made available to Lender true and complete copies of all Material Agreements.  Each Material Agreement has been entered into at arm’s length in the ordinary course of business by or on behalf of Borrower.

 

(e)            The Leases and the Material Agreements are in full force and effect and there are no defaults thereunder by Borrower or, to Borrower’s best knowledge, any other party thereto.  Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Permitted Encumbrance or any other agreement or instrument to which it is a party or by which it or the Property is bound.

 

  

41

  

 

4.15.         Full and Accurate Disclosure.  To Borrower’s knowledge, no statement of fact heretofore delivered by Sponsor or Borrower to Lender in writing in respect of the Property or the Borrower contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained therein not misleading unless subsequently corrected.  There is no fact presently actually known to Borrower which has not been disclosed to Lender which is reasonably likely to result in a Material Adverse Effect.

 

4.16.         Financial Condition.  All financial data concerning the Property heretofore provided to Lender fairly presents in accordance with GAAP the financial position of the Property in all material respects, as of the date on which it was made, and does not omit to state any fact necessary to make statements contained herein or therein not misleading.  Since the delivery of such data, except as otherwise disclosed in writing to Lender, there have occurred no changes or circumstances which have had or are reasonably likely to result in a Material Adverse Effect.

 

4.17.         Single-Purpose Requirements.

 

(a)            Borrower is now, and has always been since its formation, a Single-Purpose Entity and has conducted its business in substantial compliance with the provisions of its organizational documents.  Borrower has never (i) owned any property other than the Property and related personal property, (ii) engaged in any business, except the ownership and operation of the Property or (iii) had any material contingent or actual obligations or liabilities unrelated to the Property.

 

(b)            Borrower has provided Lender with true, correct and complete copies of (i) Borrower’s current financial statements; and (ii) Borrower’s current operating agreement or partnership agreement, as applicable, together with all amendments and modifications thereto.

 

(c)            Upon closing of the Loan, Borrower shall have been fully released from any loan (other than the Loan) secured by the Property or any of the Collateral (a “Prior Loan”), and Borrower shall not have any continuing liability, actual or contingent, for any Prior Loan, and no recourse whatsoever against any portion of any Property shall be available to satisfy any Prior Loan under any circumstances.

 

4.18.         Use of Loan Proceeds.  No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulations T, U or X or any other Regulations of such Board of Governors, or for any purpose prohibited by Legal Requirements or by the terms and conditions of the Loan Documents.  The Loan is solely for the business purpose of Borrower or for distribution to Borrower’s equityholders in accordance with applicable law.

 

4.19.         Not Foreign Person.  Borrower is not a “foreign person” within the meaning of Section 1445(f)(3) of the Code.

 

  

42

  

 

4.20.         Labor Matters.  Borrower is not a party to any collective bargaining agreements.

 

4.21.         Title.  Borrower owns good, marketable and insurable title to the Property and good and marketable title to the related personal property, to the Collateral Accounts and to any other Collateral, in each case, to Borrower’s knowledge, free and clear of all Liens whatsoever except the Permitted Encumbrances.  To Borrower’s knowledge, the Mortgage, when properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a valid, perfected first priority Lien on the Property and the rents therefrom, enforceable as such against creditors of and purchasers from Borrower and subject only to Permitted Encumbrances, and (ii) perfected Liens (pursuant to the Uniform Commercial Code of the State of Delaware) in and to all personalty, all in accordance with the terms thereof, in each case subject only to any applicable Permitted Encumbrances.  To Borrower’s knowledge, the Permitted Encumbrances do not and will not materially and adversely affect or interfere with the value, or current use or operation, of the Property, or the security intended to be provided by the Mortgage or Borrower’s ability to repay the Indebtedness in accordance with the terms of the Loan Documents.  Except as insured over by a Qualified Title Insurance Policy, to Borrower’s knowledge, there are no claims for payment for work, labor or materials affecting the Property which are or may become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents.  No creditor of Borrower other than Lender has in its possession any goods that constitute or evidence the Collateral.

 

4.22.         No Encroachments.  Except as shown on the Qualified Survey, all of the improvements on the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining property encroach upon the Property, and no easements or other encumbrances upon the Property encroach upon any of the improvements, so as, in either case, to adversely affect the value or marketability of the Property, except those which are insured against by a Qualified Title Insurance Policy.

 

4.23.         Physical Condition.

 

(a)            Except for matters set forth in the Engineering Reports, to Borrower’s best knowledge, the Property (including sidewalks, storm drainage system, roof, plumbing system, HVAC system, fire protection system, electrical system, equipment, elevators, exterior sidings and doors, irrigation system and all structural components) is in good condition, order and repair in all respects material to its use, operation or value.

 

(b)            Borrower is not aware of any material structural or other material defect or damages in the Property, whether latent or otherwise.

 

(c)            Borrower has not received and is not aware of any other party’s receipt of notice from any insurance company or bonding company of any defects or inadequacies in the Property which would, alone or in the aggregate, adversely affect in any material respect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond.

 

  

43

  

 

4.24.         Fraudulent Conveyance.  Borrower has not entered into the Transaction or any of the Loan Documents with the actual intent to hinder, delay or defraud any creditor.  Borrower has received reasonably equivalent value in exchange for its obligations under the Loan Documents. On the Closing Date, the fair salable value of Borrower’s aggregate assets is and will, immediately following the making of the Loan and the use and disbursement of the proceeds thereof, be greater than Borrower’s probable aggregate liabilities (including subordinated, unliquidated, disputed and Contingent Obligations).  Borrower’s aggregate assets do not and, immediately following the making of the Loan and the use and disbursement of the proceeds thereof will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted.  Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including Contingent Obligations and other commitments) beyond its ability to pay such debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower).

 

4.25.         Management.  Except for any Approved Management Agreement, no property management agreements are in effect with respect to the Property.

 

4.26.         Condemnation.  No Condemnation has been commenced or, to Borrower’s knowledge, is contemplated with respect to all or any material portion of the Property or for the relocation of roadways providing access to the Property.

 

4.27.         Utilities and Public Access.  The Property has adequate rights of access to dedicated public ways (and makes no material use of any means of access or egress that is not pursuant to such dedicated public ways or recorded, irrevocable rights-of-way or easements) and is adequately served by all public utilities necessary to the continued use and enjoyment of the Property as presently used and enjoyed.

 

4.28.         Environmental Matters.  Except as disclosed in the Environmental Reports:

 

(i)             To Borrower’s best knowledge, the Property is in compliance in all material respects with all Environmental Laws applicable to the Property (which compliance includes, but is not limited to, the possession of, and compliance with, all environmental, health and safety permits, approvals, licenses, registrations and other governmental authorizations required in connection with the ownership and operation of the Property under all Environmental Laws).

 

(ii)            No Environmental Claim is pending with respect to the Property, nor, to Borrower’s knowledge, is any threatened, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to Borrower or the Property.

 

  

44

  

 

(iii)           To Borrower’s knowledge, without limiting the generality of the foregoing, there is not present at, on, in or under the Property, any Hazardous Substances, PCB-containing equipment, asbestos or asbestos containing materials, underground storage tanks or surface impoundments for any Hazardous Substance, lead in drinking water (except in concentrations that comply with all Environmental Laws), or lead-based paint.

 

(iv)           To Borrower’s knowledge, there have not been and are no past, present or threatened Releases of any Hazardous Substance from or at the Property that are reasonably likely to form the basis of any Environmental Claim, and there is no threat of any Release of any Hazardous Substance migrating to the Property.

 

(v)           To Borrower’s best knowledge, no Liens are presently recorded with the appropriate land records under or pursuant to any Environmental Law with respect to the Property and, to Borrower’s best knowledge, no Governmental Authority has been taking any action to subject the Property to Liens under any Environmental Law.

 

(vi)           There have been no material environmental investigations, studies, audits, reviews or other analyses conducted by or that are in the possession of Borrower in relation to the Property which have not been made available to Lender.

 

4.29.         Assessments.  There are no pending or, to Borrower’s knowledge, proposed special or other assessments for public improvements or otherwise affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments.  No extension of time for assessment or payment by Borrower of any federal, state or local tax is in effect.

 

4.30.         No Joint Assessment.  Borrower has not suffered, permitted or initiated the joint assessment of the Property (i) with any other real property constituting a separate tax lot, or (ii) with any personal property, or any other procedure whereby the Lien of any Taxes which may be levied against such other real property or personal property shall be assessed or levied or charged to the Property as a single Lien.

 

4.31.         Separate Lots.  No portion of the Property is part of a tax lot that also includes any real property that is not Collateral.

 

4.32.         Permits; Certificate of Occupancy.  The Borrower has obtained all material Permits necessary for the present and contemplated use and operation of the Property.  The uses being made of the Property are in conformity in all material respects with the certificate of occupancy and/or Permits for the Property and any other restrictions, covenants or conditions affecting the Property.

 

4.33.         Flood Zone.  None of the Improvements on the Property is located in an area identified by the Federal Emergency Management Agency or the Federal Insurance Administration as a “100 year flood plain” or as having special flood hazards (including Zones A, B, C, V and X and Shaded X areas), or, to the extent that any portion of the Property is located in such an area, the Property is covered by flood insurance meeting the requirements set forth in Section 5.15(a)(ii).

 

  

45

  

 

4.34.         Security Deposits.  Borrower is in compliance in all material respects with all Legal Requirements relating to security deposits.

 

4.35.         Acquisition Documents.  Borrower has delivered to Lender true and complete copies of all material agreements and instruments under which Borrower or any of its affiliates or the seller of the Property have remaining rights or obligations in respect of Borrower’s acquisition of the Property.

 

4.36.         Insurance.  Borrower has obtained insurance policies reflecting the insurance coverages, amounts and other requirements set forth in this Agreement.  All premiums on such insurance policies required to be paid as of the Closing Date have been paid for the current policy period.  Borrower has not, and to Borrower’s knowledge, no other Person, has done, by act or omission, anything that would impair the coverage of any such policy.

 

4.37.         No Dealings.  Neither Borrower nor the Sponsor is aware of any unlawful influence on the assessed value of the Property.

 

4.38.         Estoppel Certificates.  Borrower has delivered to Lender true and complete copies of (a) the form(s) of estoppel certificate heretofore sent by Borrower or an Affiliate to every Tenant at the Property, and (b) each estoppel certificate received back from any such Tenant prior to the Closing Date.

 

4.39          Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws.  (a) None of the funds or other assets of any of Borrower, any Single-Purpose Equityholder or Sponsor constitute property of, or are beneficially owned, directly or indirectly, by any person, entity or government subject to trade restrictions under federal law, including, without limitation, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq. , and any executive orders or regulations promulgated thereunder, with the result that (i) the investment in any of Borrower, any Single-Purpose Equityholder or Sponsor, as applicable (whether directly or indirectly), is prohibited by law or (ii) the Loan is in violation of law (any such person, entity or government, an “Embargoed Person”); (b) no Embargoed Person has any interest of any nature whatsoever in any of Borrower, any Single-Purpose Equityholder or Sponsor, as applicable (whether directly or indirectly), with the result that (i) the investment in any of Borrower, any Single-Purpose Equityholder or Sponsor, as applicable (whether directly or indirectly) is prohibited by law or (ii) the Loan is in violation of law and (c) none of the funds of any of Borrower, any Single-Purpose Equityholder or Sponsor, as applicable, have been derived from any unlawful activity with the result that (i) the investment in any of Borrower, any Single-Purpose Equityholder or Sponsor, as applicable (whether directly or indirectly) is prohibited by law or (ii) the Loan is in violation of law.  Borrower has implemented procedures, and will consistently apply those procedures throughout the term of the Loan, to ensure the foregoing representations and warranties remain true and correct during the term of the Loan.  Notwithstanding Section 4.40 to the contrary, the representations and warranties contained in this Section 4.39 shall survive in perpetuity.

 

  

46

  

 

4.40.         Survival.  Borrower agrees that all of the representations of Borrower set forth in this Agreement and in the other Loan Documents shall survive for so long as any portion of the Indebtedness is outstanding.  All representations, covenants and agreements made by Borrower in this Agreement or in the other Loan Documents shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf.  On the date of any Securitization, on not less than three days’ prior written notice, Borrower shall deliver to Lender a certification (x) confirming that all of the representations contained in this Agreement are true and correct as of the date of such Securitization, or (y) otherwise specifying any changes in or qualifications to such representations as of such date as may be necessary to make such representations consistent with the facts as they exist on such date.

 

ARTICLE V

 

AFFIRMATIVE COVENANTS

 

5.1.           Existence.  Borrower and, if applicable, each Single-Purpose Equityholder shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence and all rights, licenses, Permits, franchises and other agreements necessary for the continued use and operation of its business.  Borrower and, if applicable, each Single-Purpose Equityholder shall deliver to Lender a copy of each amendment or other modification to any of its organizational documents promptly after the execution thereof.

 

5.2.           Maintenance of Property.

 

(a)            Borrower shall cause the Property to be maintained in good and safe working order and repair, reasonable wear and tear excepted, and in keeping with the condition and repair of properties of a similar use, value, age, nature and construction.  Borrower shall not use, maintain or operate the Property in any manner that constitutes a public or private nuisance or that makes void, voidable, or cancelable, or increases the premium of, any insurance then in force with respect thereto.  Without the prior written consent of Lender, no equipment located at or on the Property shall be removed (except for replacement of equipment in the ordinary course of Borrower’s business with items of the same utility and of equal or greater value and sales of obsolete equipment no longer needed for the operation of the Property).  Subject to Section 6.13, Borrower shall from time to time make, or cause to be made, all reasonably necessary and desirable repairs, renewals, replacements, betterments and improvements to the Property.  Borrower shall not make any change in the use of the Property that would materially increase the risk of fire or other hazard arising out of the operation of the Property, or do or permit to be done thereon anything that may in any way impair the value of the Property in any material respect or the lien of the Mortgage.  Borrower shall not install or permit to be installed on the Property any underground storage tank.  Borrower shall not, without the prior written consent of Lender, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of the Property, regardless of the depth thereof or the method of mining or extraction thereof.

 

  

47

  

 

(b)            In the event that Sears shall vacate the premises it occupies for automotive services at the Property (and does not sublet the same to a replacement Tenant), Borrower shall (i) cause a Phase II Environmental Site Assessment (as referred to in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate) of such premises to be conducted within 30 days of the date of such vacancy by an independent environmental auditor approved by Lender and promptly deliver a copy of such study to Lender and (ii) promptly remediate any condition in violation of Environmental Law identified in such study and deliver reasonably satisfactory evidence of such remediation to Lender.

 

5.3.           Compliance with Legal Requirements.  Borrower shall comply with, and shall cause the Property to comply with and be operated, maintained, repaired and improved in compliance with, all Legal Requirements, Insurance Requirements and all material contractual obligations by which Borrower is legally bound.

 

5.4.           Impositions and Other Claims.  Borrower shall pay and discharge all taxes, assessments and governmental charges levied upon it, its income and its assets as and when such taxes, assessments and charges are due and payable, as well as all lawful claims for labor, materials and supplies or otherwise, subject to any rights to contest contained in the definition of Permitted Encumbrances.  Borrower shall file all federal, state and local tax returns and other reports that it is required by law to file.  If any law or regulation applicable to Lender, any Note, the Property or the Mortgage is enacted that deducts from the value of property for the purpose of taxation any Lien thereon, or imposes upon Lender the payment of the whole or any portion of the taxes or assessments or charges or Liens required by this Agreement to be paid by Borrower, or changes in any way the laws or regulations relating to the taxation of mortgages or security agreements or debts secured by mortgages or security agreements or the interest of the mortgagee or secured party in the property covered thereby, or the manner of collection of such taxes, so as to affect the Mortgage, the Indebtedness or Lender, then Borrower, upon demand by Lender, shall pay such taxes, assessments, charges or Liens, or reimburse Lender for any amounts paid by Lender.  If in the reasonable opinion of Lender’s counsel it would be unlawful to require Borrower to make such payment or the making of such payment would result in the imposition of interest beyond the maximum amount permitted by applicable Law, Lender may elect to declare all of the Indebtedness to be due and payable 150 days from the giving of written notice by Lender to Borrower, without the payment of any prepayment, yield maintenance or similar premium or fee.

 

5.5.           Access to Property.  Borrower shall permit agents, representatives and employees of Lender and the Servicer to enter and inspect the Property or any portion thereof, and/or inspect, examine, audit and copy the books and records of Borrower (including all recorded data of any kind or nature, regardless of the medium of recording), at such reasonable times as may be requested by Lender upon reasonable advance notice.  If Lender shall determine that an Event of Default exists, the cost of such inspections, examinations, copying or audits shall be borne by Borrower, including the cost of all follow up or additional investigations, audits or inquiries deemed reasonably necessary by Lender.  The cost of such inspections, examinations, audits and copying, if not paid for by Borrower following demand, may be added to the Indebtedness and shall bear interest thereafter until paid at the Default Rate.  If Borrower prohibits, bars or fails to permit agents, representatives and employees of Lender and Servicer from entering and inspecting the Property or from inspecting, examining, auditing and copying Borrower’s books and records, as required by this Section, for more than five days after a written request is made by Lender to do so, Borrower agrees to pay Lender on demand the sum of $1,000.00 for each day after such five-day period that Borrower so prohibits or bars such inspection, and such sum or sums shall be part of the Indebtedness.

 

  

48

  

 

5.6.           Cooperate in Legal Proceedings.  Except with respect to any claim by Borrower against Lender, Borrower shall cooperate fully with Lender with respect to any proceedings before any Governmental Authority which may in any way affect the rights of Lender hereunder or under any of the Loan Documents and, in connection therewith, Lender may, at its election, participate or designate a representative to participate in any such proceedings.

 

5.7.           Leases.

 

(a)            Promptly upon Lender’s written request, Borrower shall furnish Lender with executed copies of all Leases.  All new Leases and renewals or amendments of Leases must (i) be entered into on an arms-length basis with Tenants that are not affiliates of Borrower and whose identity and creditworthiness is appropriate for tenancy in property of comparable quality, (ii) provide for rental rates and other economic terms which, taken as a whole, are at least equivalent to then-existing market rates, based on the applicable market, and otherwise contain terms and conditions that are commercially reasonable, (iii) not have a Material Adverse Effect, and (iv) except for Specialty Leases, be expressly subject and subordinate to the Mortgage and contain provisions for the agreement by the Tenant thereunder to attorn to Lender and any purchaser at a foreclosure sale (such attornment to be self-executing and effective upon acquisition of title to the Property by any purchaser at a foreclosure sale), or require the Tenant to execute a mutually acceptable subordination and nondisturbance agreement.

 

(b)           All new Leases that are Major, and all terminations, renewals and amendments of Major Leases, and any surrender of rights under any Major Lease, shall be subject to the prior written consent of Lender.  If Lender shall fail to respond to Borrower’s request for such consent within five Business Days of Lender’s receipt of such request accompanied by a comprehensive term sheet and reasonably detailed financial information about the proposed Tenant (to the extent available from such Tenant), Borrower may deliver to Lender a second request for consent stating in bold and capitalized type that “LENDER’S FAILURE TO RESPOND TO THE ENCLOSED REQUEST WITHIN FIVE BUSINESS DAYS SHALL BE DEEMED LENDER’S APPROVAL”, provided that if Lender has reasonably requested any additional information with respect to the Tenant (and such information is possessed by or available to Borrower), Borrower shall not have the right to send any such second request unless and until Borrower shall have delivered to Lender such additional information.  In the event Lender fails to approve or disapprove such request within five Business Days after Lender’s receipt of such second request, such request shall be deemed approved.

 

  

49

  

 

(c)            Borrower shall (i) observe and punctually perform all the material obligations imposed upon the lessor under the Leases; (ii) enforce all of the material terms, covenants and conditions contained in the Leases on the part of the lessee thereunder to be observed or performed, short of termination thereof, except that Borrower may terminate any Lease following a material default thereunder by the respective Tenant; (iii) not collect any of the rents thereunder more than one month in advance; (iv) not execute any assignment of lessor’s interest in the Leases or associated rents other than the assignment of rents and leases under the Mortgage; (v) not cancel or terminate any guarantee of any of the Major Leases without the prior written consent of Lender; and (vi) not permit any subletting of any space covered by a Major Lease or an assignment of the Tenant’s rights under a Major Lease, except in strict accordance with the terms of such Major Lease.  Borrower shall deliver to each new Tenant a Tenant Notice upon execution of such Tenant’s Lease and, promptly upon request of Lender, deliver to Lender a copy thereof and evidence of such Tenant’s receipt thereof.

 

(d)           Security deposits of Tenants under all Leases, whether held in cash or any other form, shall be held in accordance with Legal Requirements.  Borrower shall maintain books and records of sufficient detail to identify all security deposits of Tenants separate and apart from any other payments received from Tenants.  Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements shall be maintained in full force and effect unless replaced by cash deposits as described above, shall be issued by an institution reasonably satisfactory to Lender, shall (if not prohibited by any Legal Requirements) name Lender as payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender) or may name Borrower as payee thereunder so long as such bond or other instrument is pledged to Lender as security for the Indebtedness and shall, in all respects, comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender.  Borrower shall, upon Lender’s request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoing.  During the continuance of any Event of Default, Borrower shall, upon Lender’s request, deposit with Lender in an Eligible Account pledged to Lender an amount equal to the aggregate security deposits of the Tenants (and any interest theretofore earned on such security deposits and actually received by Borrower) which Borrower had not returned to the applicable Tenants or applied in accordance with the terms of the applicable Lease.

 

(e)            Borrower shall promptly deliver to Lender a copy of each written notice from a Tenant under any Major Lease claiming that Borrower is in default in the performance or observance of any of the material terms, covenants or conditions thereof to be performed or observed by Borrower.

 

5.8.           Plan Assets, etc.  Borrower will do, or cause to be done, all things necessary to ensure that it will not be deemed to hold Plan Assets at any time.

 

5.9.           Further Assurances.  Borrower shall, at Borrower’s sole cost and expense, from time to time as reasonably requested by Lender, execute, acknowledge, record, register, file and/or deliver to Lender such other instruments, agreements, certificates and documents (including Uniform Commercial Code financing statements and amended or replacement mortgages) as Lender may reasonably request to evidence, confirm, perfect and maintain the Liens securing or intended to secure the obligations of Borrower and the rights of Lender under the Loan Documents or to facilitate a replacement of the Cash Management Bank pursuant to Section 3.1(c) or a bifurcation of the Notes pursuant to Sections 1.1(c) and/or 9.7(b), in each case if requested by Lender, and do and execute all such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents as Lender shall reasonably request from time to time.  Upon foreclosure, the appointment of a receiver or any other relevant action, Borrower shall, at its sole cost and expense, cooperate fully and completely to effect the assignment or transfer of any license, permit, agreement or any other right necessary or useful to the operation of the Collateral. Borrower hereby authorizes and appoints Lender as its attorney-in-fact to execute, acknowledge, record, register and/or file such instruments, agreements, certificates and documents, and to do and execute such acts, conveyances and assurances, should Borrower fail to do so itself in violation of this Agreement or the other Loan Documents following written request from Lender, in each case without the signature of Borrower.  The foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term of this Agreement.  Borrower hereby ratifies all actions that such attorney shall lawfully take or cause to be taken in accordance with this Section 5.9.

 

  

50

  

 

5.10.         Management of Collateral.

 

(a)            The Property shall be managed at all times by an Approved Property Manager pursuant to an Approved Management Agreement.  Pursuant to the Subordination of Property Management Agreement or Agreements, each Approved Property Manager shall agree that its Approved Management Agreement and all fees thereunder (including any incentive fees) are subject and subordinate to the Indebtedness.  Borrower may from time to time appoint an Approved Property Manager to manage the Property pursuant to an Approved Management Agreement, and such successor manager shall execute for Lender’s benefit a Subordination of Property Management Agreement in form and substance reasonably satisfactory to Lender.  The per annum fees of the Approved Property Manager (including any incentive fees) shall not, at any time, exceed 3% of the gross revenues of the Property for the then most recently concluded Test Period.

 

(b)            Borrower shall cause each Approved Property Manager (including any successor Approved Property Manager) to maintain at all times worker’s compensation insurance as required by Governmental Authorities.

 

(c)            Borrower shall notify Lender in writing of any default of Borrower or the Approved Property Manager under the Approved Management Agreement, after the expiration of any applicable cure periods, of which Borrower has actual knowledge.  Lender shall have the right, after reasonable notice to Borrower and in accordance with the Subordination of Management Agreement, to cure defaults of Borrower under the Approved Management Agreement.  Any reasonable out-of-pocket expenses incurred by Lender to cure any such default shall constitute a part of the Indebtedness and shall be due from Borrower upon demand by Lender.

 

  

51

  

 

(d)            Upon the occurrence and during the continuance of an Event of Default, or a material default by the Approved Property Manager under the Approved Management Agreement after the expiration of any applicable cure period or upon the filing of a bankruptcy petition or the occurrence of a similar event with respect to the Approved Property Manager, Lender may, in its sole discretion, require Borrower to terminate the Approved Management Agreement and engage an Approved Property Manager selected by Lender to serve as replacement Approved Property Manager pursuant to an Approved Management Agreement.

 

5.11.         Notice of Material Event.   Borrower shall give Lender prompt notice (containing reasonable detail) of (i) any material change in the financial or physical condition of the Property, as reasonably determined by Borrower, including the termination or cancellation of any Lease covering 1.5% or more of the gross leasable area of the Property and the termination or cancellation of terrorism or other insurance required by this Agreement, (ii) any notice from the Approved Property Manager, to the extent such notice relates to a matter that is likely to have a Material Adverse Effect, (iii) any litigation or governmental proceedings pending or threatened in writing against Borrower or the Property that is reasonably likely to have a Material Adverse Effect and (iv) the insolvency or bankruptcy filing of Borrower, Borrower’s Single-Purpose Equityholder, Sponsor or an affiliate of any of the foregoing.

 

5.12.        Annual Financial Statements.  As soon as available, and in any event within 90 days after the close of each Fiscal Year, Borrower shall furnish to Lender, in an Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case of predominantly text documents, in Adobe pdf format, a balance sheet of Borrower as of the end of such year, together with related statements of income and equityholders’ capital for such Fiscal Year, audited by BDO Seidman, a “Big Four” accounting firm or another accounting firm mutually acceptable to Borrower and Lender, in each case, whose opinion shall be to the effect that such financial statements have been prepared in accordance with GAAP applied on a consistent basis and shall not be qualified as to the scope of the audit or as to the status of Borrower as a going concern.  Together with Borrower’s annual financial statements, Borrower shall furnish to Lender, in an Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case of predominantly text documents, in Adobe pdf format:

 

(i)             a statement of cash flows;

 

(ii)            then current rent roll and a tenant summary with sales information;

 

(iii)           an annual report for the most recently completed fiscal year, describing Capital Expenditures (stated separately with respect to any project costing in excess of $100,000), Tenant Improvements and Leasing Commissions; and

 

(iv)           such other information as Lender shall reasonably request.

 

  

52

  

 

5.13.         Quarterly Financial Statements.  As soon as available, and in any event within 20 days after the end of each Fiscal Quarter (including year-end), Borrower shall furnish to Lender, in an Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case of predominantly text documents, in Adobe pdf format, quarterly and year-to-date unaudited financial statements prepared for such fiscal quarter with respect to Borrower, including a balance sheet and operating statement as of the end of such Fiscal Quarter, which shall be accompanied by an Officer’s Certificate certifying that the same are true and correct and were prepared in accordance with GAAP applied on a consistent basis, subject to changes resulting from audit and normal year-end audit adjustments.  Each such quarterly report shall be accompanied by the following, in an Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case of predominantly text documents, in Adobe pdf format:

 

(i)             a statement in reasonable detail which calculates Net Operating Income for each of the Fiscal Quarters in the Test Period ending in such Fiscal Quarter, in the case of each such Fiscal Quarter, ending at the end thereof;

 

(ii)            copies of each of the Leases signed during such quarter, together with a summary thereof which shall include the Tenant’s name, lease term, base rent, Tenant Improvements, leasing commissions paid, free rent and other material tenant concessions;

 

(iii)           then current rent roll and a tenant summary with sales information; and

 

(iv)           such other information as Lender shall reasonably request.

 

5.14.         Monthly Financial Statements; Non-Delivery of Financial Statements.

 

(a)            Until the occurrence of a Securitization and during the continuance of a Trigger Period or an Event of Default (or, in the case of item (iii) below, at all times), Borrower shall furnish within 30 days after the end of each calendar month (other than the calendar month immediately following the final calendar month of any Fiscal Year or Fiscal Quarter), in an Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case of predominantly text documents, in Adobe pdf format, monthly and year-to-date unaudited financial statements prepared for the applicable month with respect to Borrower, including a balance sheet and operating statement as of the end of such month, which shall be accompanied by an Officer’s Certificate certifying that the same are true and correct and were prepared in accordance with GAAP applied on a consistent basis, subject to changes resulting from audit and normal year-end audit adjustments.  Each such monthly report shall be accompanied by the following:

 

(i)             a summary of Leases signed during such month, which summary shall include the Tenant’s name, lease term, base rent, escalations, Tenant Improvements, leasing commissions paid, free rent and other concessions;

 

  

53

  

 

(ii)            then current rent roll and a tenant summary with sales information; and

 

(iii)           such other information as Lender shall reasonably request.

 

(b)            If Borrower fails to provide to Lender the financial statements and other information specified in Sections 5.12, 5.13 and this Section 5.14 within the respective time period specified in such Sections, then (i) such failure shall, at Lender’s election, constitute an Event of Default following written notice from Lender, and (ii) Borrower shall pay to Lender a fee in the amount of $5,000.00 immediately upon the occurrence of such failure and again upon the expiration of each 20-day period thereafter until compliance is achieved, which amounts shall constitute a portion of the Indebtedness and, if unpaid, shall accrue interest at the Default Rate; provided, however, that for so long as Sponsor and/or Glimcher Realty Trust shall continue to own 100% of the indirect equity interests in Borrower and are required to report their periodic financial statements in public filings, the fee specified in foregoing clause (ii) shall not apply.

 

5.15.         Insurance.

 

(a)            Borrower shall obtain and maintain with respect to the Property, for the mutual benefit of Borrower and Lender at all times, the following policies of insurance:

 

(i)             insurance against loss or damage by standard perils included within the classification “Special Form Cause of Loss” (including coverage for damage caused by windstorm and hail).  Such insurance shall (A) be in an amount equal to the full replacement cost of the Property and fixtures (without deduction for physical depreciation); (B) have deductibles acceptable to Lender (but in any event not in excess of $100,000); (C) be paid annually in advance; (D) contain a “Replacement Cost Endorsement” with a waiver of depreciation and an “Agreed Amount Endorsement” waiving all coinsurance provisions; (E) include an ordinance and law endorsement containing Coverage A: “Loss to the Undamaged Portion” (with a limit equal to replacement cost), Coverage B: “Demolition Cost” and Coverage C: “Increased Cost of Construction” coverages each with limits of no less than 10% of replacement cost or such lesser amounts as Lender may require in its sole discretion; (F) permit that the improvements and other property covered by such insurance be rebuilt at another location in the event that such improvements and other property cannot be rebuilt at the location on which they are situated as of the date hereof.  If such insurance excludes mold, then the Borrowers shall implement a mold prevention program satisfactory to Lender;

 

(ii)            flood insurance if the Property is located in a “100 Year Flood Plain”, “special hazard area” (including Zones A and V) or other area with a high degree of flood risk in an amount equal to the maximum limit of coverage available from FEMA/FIA, plus such excess limits requested by Lender, with a deductible not in excess of $25,000;

 

(iii)           commercial general liability insurance, including broad form coverage of property damage, blanket contractual liability and personal injury (including death resulting therefrom), to be on an “occurrence” form containing minimum limits per occurrence of not less than $1,000,000 with not less than a $2,000,000 general aggregate for any policy year (with a per location aggregate if the Property is on a blanket policy).  In addition, at least $50,000,000 excess and/or umbrella liability insurance shall be obtained and maintained for any and all claims, including covered legal liability imposed upon Borrower and all related court costs and attorneys’ fees and disbursements; 

 

  

54

  

 

(iv)           rental loss and/or business interruption insurance covering the perils required to be covered by the insurance provided for herein, including but not limited to, clauses (i), (ii), (v), (vii), (viii) and (ix) of this Section 5.15(a), and covering the 18 month period commencing on the date of any Casualty or Condemnation, and containing an extended period of indemnity endorsement covering the 12 month period commencing on the date on which the Property has been restored, as reasonably determined by the applicable insurer (even if the policy will expire prior to the end of such period).  The amount of such insurance shall be increased from time to time as and when the gross revenues from the Property increase;

 

(v)            insurance against loss or damage from (A) leakage of sprinkler systems, if not provided by the policy required by Section 5.15(a)(i), and (B) explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed in any of the Improvements (without exclusion for explosions) and insurance against loss of occupancy or use arising from any breakdown, in such amounts as are generally available and are generally required by institutional lenders for properties comparable to the Property;

 

(vi)           worker’s compensation insurance with respect to all employees of Borrower as and to the extent required by any Governmental Authority or Legal Requirement and employer’s liability coverage of at least $1,000,000 (if applicable);

 

(vii)          during any period of repair or restoration, and only if the property and liability coverage forms do not otherwise apply, owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the insurance provided for in Section 5.15(a)(iii).  The insurance provided for in Section 5.15(a) shall (1) be written in a so-called builder’s risk completed value form or equivalent coverage, including coverage for 100% of the total costs of construction on a non-reporting basis and against all risks insured against pursuant to clauses (i), (ii), (iv), (v), (viii) and (ix) of Section 5.15(a), (2) shall include permission to occupy the Property, and (3) shall contain an agreed amount endorsement waiving co-insurance provisions;

 

(viii)         if required by Lender, earthquake insurance (A) with minimum coverage equivalent to the greater of  1.0x SUL (scenario upper loss) and 1.5x SEL (scenario expected loss) multiplied by the full replacement cost of the building plus business income, (B) having a deductible approved by Lender (but in any event not be in excess of 5% of the total insurable value of the Property), and (C) if the Property is legally nonconforming under applicable zoning ordinances and codes, containing ordinance of law coverage in amounts as required by Lender;

 

(ix)           so long as the Terrorism Risk Insurance Program Reauthorization Act of 2007 (“TRIPRA”) or a similar or subsequent statute is in effect, terrorism insurance for Certified and Non-Certified acts (as such terms are defined in TRIPRA or similar or subsequent statute) in an amount equal to the full replacement cost of the Property (plus twelve months of business interruption coverage).  If TRIPRA or a similar or subsequent statute is not in effect, then provided that terrorism insurance is commercially available, Borrower shall be required to carry terrorism insurance throughout the term of the Loan as required by the preceding sentence, but in such event Borrower shall not be required to spend on terrorism insurance coverage more than two times the amount of the insurance premium that is payable at such time in respect of the property and business interruption/rental loss insurance required hereunder (without giving effect to the cost of terrorism and earthquake components of such casualty and business interruption/rental loss insurance), and if the cost of terrorism insurance exceeds such amount, Borrower shall purchase the maximum amount of terrorism insurance available with funds equal to such amount;

 

  

55

  

 

(x)             motor vehicle liability coverage for all owned and non owned vehicles, including rented and leased vehicles containing minimum limits per occurrence of $1,000,000.00 (if applicable); and

 

(xi)            such other insurance as may from time to time be reasonably requested by Lender, to the extent such other insurance is available in the commercial insurance marketplace on commercially reasonable terms.

 

(b)            All policies of insurance (the “Policies”) required pursuant to this Section 5.15 shall be issued by one or more primary insurers having a claims-paying ability of at least “A” or “A2” by each of the Rating Agencies, or by a syndicate of insurers through which at least 75% of the coverage (if there are 4 or fewer members of the syndicate) or at least 60% of the coverage (if there are 5 or more members of the syndicate) is with carriers having such claims-paying ability ratings (provided that the first layers of coverage are from carriers rated at least “A” or “A2” and all such carriers shall have claims-paying ability ratings of not less than “BBB+”  or “Baa1”).  Notwithstanding anything to the contrary herein, for purposes of determining whether the insurer ratings requirements set forth above have been satisfied, (1) any insurer that is not rated by Fitch will be regarded as having a Fitch rating that is the equivalent of the rating given to such insurer by any of Moody’s and S&P that does rate such insurer (or, if both such rating agencies rate such insurer, the lower of the two ratings), and (2) any insurer that is not rated by Moody’s will be regarded as having a Moody’s rating of “Baa1” or better if it is rated “A-” or better by S&P and will be regarded as having a Moody’s rating of  “A2” or better if it is rated “A+” or better by S&P.

 

(c)            All Policies required pursuant to this Section 5.15:

 

(i)             may contain deductibles only to the extent approved by Lender, such approval not to be unreasonably withheld, delayed or conditioned, but subject to the requirements of each Rating Agency;

 

(ii)            shall be maintained throughout the term of the Loan without cost to Lender and shall name Borrower as the named insured;

 

  

56

  

 

(iii)           with respect to property policies, shall contain a standard noncontributory mortgagee clause naming Lender and its successors and assigns as their interests may appear as first mortgagee and loss payee;

 

(iv)           with respect to liability policies, shall name Lender and its successors and assigns as their interests may appear as additional insureds;

 

(v)            with respect to rental or business interruption insurance policies, shall name Lender and its successors and/or assigns as their interests may appear as loss payee;

 

(vi)           shall contain an endorsement providing that neither Borrower nor Lender nor any other party shall be a co-insurer under said Policies;

 

(vii)          shall contain an endorsement providing that Lender shall receive at least 30 days’ prior written notice of any modification, reduction or cancellation thereof;

 

(viii)         shall contain an endorsement providing that no act or negligence of Borrower or of a Tenant or other occupant or any foreclosure or other proceeding or notice of sale relating to the Property shall affect the validity or enforceability of the insurance insofar as a mortgagee is concerned;

 

(ix)           shall not be liable for any insurance premiums thereon or subject to any assessments thereunder;

 

(x)            shall contain a waiver of subrogation against Lender;

 

(xi)           shall contain deductibles which, in addition to complying with any other requirements expressly set forth in Section 5.15(a), are acceptable to Lender and are no larger than is customary for similar policies covering similar properties in the geographic market in which the Property is located and in any event no larger than $100,000;

 

(xii)          may be in the form of a blanket policy, provided that Borrower shall provide evidence satisfactory to Lender that the insurance premiums for the Property are separately allocated under such Policy to the Property and that (i) payment of such allocated amount shall maintain the effectiveness of such Policy as to the Property notwithstanding the failure of payment of any other portion of premiums, and (ii) overall insurance limits will under no circumstance limit the amount that will be paid in respect of the Property, and provided further that any such blanket policy shall specifically allocate to the Property the amount of coverage from time to time required hereunder or shall otherwise provide the same protection as would a separate Policy in Lender’s discretion, subject to review and approval by Lender based on the schedule of locations and values; and

 

(xiii)         shall otherwise be reasonably satisfactory in form and substance to Lender and shall contain such other provisions as Lender deems reasonably necessary or desirable to protect its interests.

 

  

57

  

 

(d)            Borrower shall pay the premiums for all Policies as the same become due and payable.  Copies of such Policies, certified as true and correct by Borrower, shall be delivered to Lender promptly upon request.  Not later than 30 days prior to the expiration date of each Policy, Borrower shall deliver to Lender evidence, reasonably satisfactory to Lender, of its renewal.  Borrower shall promptly forward to Lender a copy of each written notice received by Borrower of any modification, reduction or cancellation of any of the Policies or of any of the coverages afforded under any of the Policies.  Within 30 days after request by Lender, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested by Lender, taking into consideration changes in the value of money over time, changes in liability laws, changes in prudent customs and practices, and the like.

 

(e)            Borrower shall not procure any other insurance coverage that would be on the same level of payment as the Policies or would adversely impact in any way the ability of Lender or Borrower to collect any proceeds under any of the Policies.  If at any time Lender is not in receipt of written evidence that all Policies are in full force and effect when and as required hereunder, Lender shall have the right to take such action as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate (but limited to the coverages and amounts required hereunder).  All premiums incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid, and shall bear interest at the Default Rate.

 

(f)             In the event of foreclosure of the Mortgage or other transfer of title to the Property in extinguishment in whole or in part of the Indebtedness, all right, title and interest of Borrower in and to the Policies then in force with respect to the Property and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or in Lender or other transferee in the event of such other transfer of title.

 

5.16.         Casualty and Condemnation.

 

(a)            Borrower shall give prompt notice to Lender of any Casualty or Condemnation or of the actual or threatened commencement of proceedings that would result in a Condemnation

 

(b)            Lender may participate in any proceedings for any taking by any public or quasi-public authority accomplished through a Condemnation or any transfer made in lieu of or in anticipation of a Condemnation, to the extent permitted by law.  Upon Lender’s request, Borrower shall deliver to Lender all instruments reasonably requested by it to permit such participation.  Borrower shall, at its sole cost and expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings.  Borrower shall not consent or agree to a Condemnation or action in lieu thereof without the prior written consent of Lender in each instance, which consent shall not be unreasonably withheld or delayed in the case of a taking of an immaterial portion of the Property.

 

  

58

  

 

(c)            Lender may (x) jointly with Borrower settle and adjust any claims, (y) during the continuance of an Event of Default, settle and adjust any claims without the consent or cooperation of Borrower, or (z) allow Borrower to settle and adjust any claims; except that if no Event of Default has occurred and is continuing, Borrower may settle and adjust claims aggregating not in excess of the Loss Proceeds Threshold if such settlement or adjustment is carried out in a competent and timely manner.  Provided that no Event of Default has occurred and is continuing, Borrower shall be permitted to collect and receive Loss Proceeds for claims that Borrower is permitted to settle without Lender’s participation pursuant to the immediately preceding sentence; provided, however, that Lender shall be entitled to collect and receive (as set forth below) any and all Loss Proceeds for claims that Borrower is not permitted to settle without Lender’s participation pursuant to the immediately preceding.  The reasonable expenses incurred by Lender in the adjustment and collection of Loss Proceeds shall become part of the Indebtedness and shall be reimbursed by Borrower to Lender upon demand therefor.

 

(d)            Except to the extent Borrower is permitted to collect and receive Loss Proceeds pursuant to Section 5.16(c), all Loss Proceeds from any Casualty or Condemnation shall be immediately deposited into the Loss Proceeds Account (monthly rental loss/business interruption proceeds to be initially deposited into the Loss Proceeds Account and subsequently deposited into the Cash Management Account in installments as and when the lost rental income covered by such proceeds would have been payable).  Following the occurrence of a Casualty, Borrower, regardless of whether proceeds are available, shall in a reasonably prompt manner proceed to restore, repair, replace or rebuild the Property to be of at least equal value and of substantially the same character as prior to the Casualty, all in accordance with the terms hereof applicable to Alterations.  If any Condemnation or Casualty occurs as to which, in the reasonable judgment of Lender:

 

(i)             in the case of a Casualty, the cost of restoration would not exceed 30% of the Loan Amount and the Casualty does not render untenantable, or result in the cancellation of Leases covering, more than 25% of the gross rentable area of the Property, or result in cancellation of Leases covering more than 25% of the base contractual rental revenue of the Property;

 

(ii)            in the case of a Condemnation, the Condemnation does not render untenantable, or result in the cancellation of Leases covering, more than 15% of the gross rentable area of the Property;

 

(iii)           restoration of the Property is reasonably expected to be completed prior to the expiration of rental interruption insurance and at least six months prior to the Maturity Date;

 

(iv)           after restoration of the Property, the fair market value thereof is reasonably expected to equal at least the fair market value of the Property immediately prior to such Condemnation or Casualty (assuming the affected portion of the Property is relet); and

 

(v)           all necessary approvals and consents from Governmental Authorities will be obtained to allow the rebuilding and re-occupancy of the Property;

 

  

59

  

 

or if Lender otherwise elects to allow Borrower to restore the Property, then, provided no Event of Default shall have occurred and is continuing, the Loss Proceeds after receipt thereof by Lender and reimbursement of any reasonable expenses incurred by Lender in connection therewith shall be applied to the cost of restoring, repairing, replacing or rebuilding the Property or part thereof subject to the Casualty or Condemnation, in the manner set forth below (and Borrower shall commence, as promptly and diligently as practicable, to prosecute such restoring, repairing, replacing or rebuilding of the Property in a workmanlike fashion and in accordance with applicable law to a status at least equivalent to the quality and character of the Property immediately prior to the Condemnation or Casualty).  Provided that no Event of Default shall have occurred and be then continuing,  Lender shall disburse such Loss Proceeds to Borrower upon Lender’s being furnished with (i) evidence reasonably satisfactory to it of the estimated cost of completion of the restoration, (ii) funds, or assurances reasonably satisfactory to Lender that such funds are available and sufficient in addition to any remaining Loss Proceeds, to complete the proposed restoration (including, without limitation, for any reasonable costs and expenses of Lender to be incurred in administering such restoration) and for payment of the Indebtedness as it becomes due and payable during the restoration, and (iii) such architect’s certificates, waivers of lien, contractor’s sworn statements, title insurance endorsements, bonds, plats of survey and such other evidences of cost, payment and performance as Lender may reasonably request; and Lender may, in any event, require that all plans and specifications for restoration reasonably estimated by Lender to exceed the Loss Proceeds Threshold be submitted to and approved by Lender prior to commencement of work (which approval shall not be unreasonably withheld).  If Lender reasonably estimates that the cost to restore will exceed the Loss Proceeds Threshold, Lender may retain a local construction consultant to inspect such work and review Borrower’s request for payments and Borrower shall, on demand by Lender, reimburse Lender for the reasonable fees and expenses of such consultant (which fees and expenses shall constitute Indebtedness).  No payment shall exceed 90% of the value of the work performed from time to time until such time as 50% of the restoration (calculated based on the anticipated aggregate cost of the work) has been completed, and amounts retained prior to completion of 50% of the restoration shall not be paid prior to the final completion of the restoration.  Funds other than Loss Proceeds shall be disbursed prior to disbursement of such Loss Proceeds, and at all times the undisbursed balance of such proceeds remaining in the Loss Proceeds Account, together with any additional funds irrevocably and unconditionally deposited therein or irrevocably and unconditionally committed for that purpose, shall be at least sufficient in the reasonable judgment of Lender to pay for the cost of completion of the restoration free and clear of all Liens or claims for Lien.

 

(e)            Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Loss Proceeds lawfully or equitably payable to Lender in connection with the Property.  Lender shall be reimbursed for any expenses reasonably incurred in connection therewith (including reasonable attorneys’ fees and disbursements, and, if reasonably necessary to collect such proceeds, the expense of an Appraisal on behalf of Lender) out of such Loss Proceeds or, if insufficient for such purpose, by Borrower.  Borrower hereby irrevocably constitutes and appoints Lender as the attorney-in-fact of Borrower for matters in excess of the Loss Proceeds Threshold with respect to the Property, with full power of substitution, subject to the terms of this Section 5.16, to settle for, collect and receive all Loss Proceeds and any other awards, damages, insurance proceeds, payments or other compensation from the parties or authorities making the same, to appear in and prosecute any proceedings therefor and to give receipts and acquittance therefor (which power of attorney shall be irrevocable so long as any of the Indebtedness is outstanding, shall be deemed coupled with an interest, and shall survive the voluntary or involuntary dissolution of Borrower).

 

  

60

  

 

(f)             If Borrower is not entitled to apply Loss Proceeds toward the restoration of the Property pursuant to Section 5.16(d) and Lender elects not to permit such Loss Proceeds to be so applied, such Loss Proceeds shall be applied on the first Payment Date following such election to the prepayment of the Loan and shall be accompanied by interest through the end of the applicable Interest Accrual Period (calculated as if the amount prepaid were outstanding for the entire Interest Accrual Period).  If the Note has been bifurcated into multiple Notes pursuant to Section 1.1(c), all prepayments of the Loan made by Borrower in accordance with this Section 5.16(f) shall be applied to the Notes in ascending order of interest rate (i.e., first to the Note with the lowest interest rate until its outstanding principal balance has been reduced to zero, then to the Note with the second lowest interest rate until its outstanding principal balance has been reduced to zero, and so on) or in such other order as Lender shall determine.

 

5.17.         Annual Budget.  Within 60 days after the commencement of each Fiscal Year during the term of the Loan and at least 30 days after the commencement of any Trigger Period or Event of Default, Borrower shall deliver to Lender for informational purposes only an Annual Budget for the Property for the ensuing Fiscal Year and, promptly after preparation thereof, any subsequent revisions to the Annual Budget.  During the continuance of any Trigger Period or Event of Default, such Annual Budget and any such revisions shall be subject to Lender’s approval (the Annual Budget, as so approved, the “Approved Annual Budget”); provided, however, that Borrower shall not amend any Annual Budget more than once in any 60-day period.  For so long as Lender shall withhold its consent to any Annual Budget or any revisions thereto, the Annual Budget in effect prior to any such request for approval shall remain in effect.  Without the prior written consent of Lender, which consent shall not be unreasonably withheld or delayed, during the continuance of a Trigger Period Borrower shall not make any expenditures that are either not provided for in the Approved Annual Budget or that would, in the aggregate, cause any line item in the Approved Annual Budget to be exceeded by 5% or more measured on an annual basis, other than expenditures for non-discretionary items and expenditures required to be made by reason of the occurrence of any emergency (i.e., an unexpected event which threatens imminent harm to persons or property at the Property) and with respect to which it would be impracticable, under the circumstances, to obtain Lender’s prior consent thereto (collectively, the “Non-Discretionary Items”).

 

5.18.         General Indemnity.

 

(a)            Borrower, at its sole cost and expense, shall protect, indemnify, reimburse, defend and hold harmless Lender and its officers, directors, employees and agents (collectively, the “Indemnified Parties”) for, from and against, and shall be responsible for, any and all Damages of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against any of the Indemnified Parties, in any way relating to or arising out of (i) the making or holding or enforcement of the Loan by Lender or the administration of the Transaction; (ii) ownership of the Note or the Mortgage (including, without limitation, any tax on the making and/or recording of any of the Loan Documents), or any interest in the Property or receipt of any rents or Revenues; (iii) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (iv) any use, nonuse or condition in, on or about the Property any part thereof or on adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (v) any failure on the part of Borrower to perform or comply with any of the terms of the Loan Documents; (vi) performance of any labor or services or the furnishing of any materials or other property in respect of the Property or any part thereof; (vii) any failure of the Property to comply with any Legal Requirements; (viii) any representation or warranty made by Borrower in any of the Loan Documents being false or misleading in any material respect as of the date such representation or warranty was made; (ix) any claim by brokers, finders or similar persons claiming to be entitled to a commission in connection with any lease or other transaction involving the Property or any part thereof under any legal requirement or any liability asserted against any Indemnified Party with respect thereto; and (x) any and all claims and demands whatsoever that may be asserted against any Indemnified Party by reason of any alleged obligations or undertakings on such party’s part to perform or discharge any of the terms, covenants, or agreements contained in any Lease, in each case, to the extent resulting, directly or indirectly, from any claim (including any Environmental Claim) made (whether or not in connection with any legal action, suit, or proceeding) by or on behalf of any Person; provided, however, that no Indemnified Party shall have the right to be indemnified hereunder to the extent that such Damages have been found by a final, non-appealable judgment of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Party.

 

  

61

  

 

(b)            Upon written request by any Indemnified Party, Borrower shall defend such Indemnified Party (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals reasonably approved by such Indemnified Party.  Notwithstanding the foregoing, any Indemnified Party may, in the event of a conflict of interest, engage its own attorneys and other professionals to defend or assist it (chosen at Lender’s sole discretion), and, at the option of such Indemnified Party, its attorneys shall control the resolution of any claim or proceeding.  Upon demand, Borrower shall pay or, in the sole discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals in connection therewith.

 

(c)            Any amounts payable to Lender by reason of the application of this Section 5.18 shall be secured by the Mortgage and shall become immediately due and payable and shall bear interest at the Default Rate from the date Damages are sustained by the Indemnified Parties until paid.

 

(d)            The provisions of and undertakings and indemnification set forth in this Section 5.18 shall survive the satisfaction and payment in full of the Indebtedness and termination of this Agreement.

 

5.19.         Nonbinding Consultation.  Lender shall have the right to consult with and advise Borrower regarding significant business activities and business and financial developments of Borrower, provided that any such advice or consultation or the result thereof shall be completely nonbinding on Borrower.

 

  

62

  

 

5.20          Compliance with Encumbrances and Material Agreements.  Borrower covenants and agrees as follows:

(i)             Borrower shall comply with all material terms, conditions and covenants of each Material Agreement and each material Permitted Encumbrance, including any reciprocal easement agreement, any declaration of covenants, conditions and restrictions, and any condominium arrangements.

(ii)            Borrower shall promptly deliver to Lender a true and complete copy of each and every notice of default received by Borrower with respect to any obligation of such Borrower under the provisions of any such Material Agreement and/or Permitted Encumbrance.

(iii)           Borrower shall deliver to Lender copies of any written notices of default or event of default relating to any such Material Agreement and/or Permitted Encumbrance served by such Borrower.

(iv)           After the occurrence of an Event of Default, so long as the Loan is outstanding, Borrower shall not grant or withhold any material consent, approval or waiver under any such Permitted Encumbrance without the prior written consent of Lender.

(v)            Borrower shall deliver to each other party to any Permitted Encumbrance and any Material Agreement notice of the identity of Lender and each assignee of Lender of which such Borrower is aware if such notice is required in order to protect Lender’s interest thereunder.

 

(vi)           Borrower shall enforce, short of termination thereof, the performance and observance of each and every material term, covenant and provision of each Material Agreements to be performed or observed, if any.

 

5.21          Prohibited Persons.  None of Borrower, Sponsor or any Person owning a direct or indirect beneficial interest in Borrower or Sponsor shall (i) knowingly conduct any business, or engage in any transaction or dealing, with any Embargoed Person, including, but not limited to, the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Embargoed Person, or (ii) knowingly engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order 13224.  Borrower shall deliver to Lender from time to time written certification or other evidence as may be reasonably requested by Lender, confirming that (x) none of Borrower, Sponsor nor, to Borrower’s knowledge, any Person owning a direct or indirect beneficial interest in Borrower is an Embargoed Person and (y) none of Borrower, Sponsor or, to Borrower’s knowledge, any Person owning a direct or indirect beneficial interest in Borrower has knowingly engaged in any business, transaction or dealings with a Embargoed Person, including, but not limited to, the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Embargoed Person.

 

  

63

  

 

ARTICLE VI

 

NEGATIVE COVENANTS

 

6.1.           Liens on the Property.  Neither Borrower nor, if applicable, any Single-Purpose Equityholder shall permit or suffer the existence of any Lien on any of its assets, other than Permitted Encumbrances.

 

6.2.           Ownership.  Borrower shall not own any assets other than the Property and related personal property and fixtures located therein or used in connection therewith.

 

6.3.           Transfer.  Borrower shall not Transfer any Collateral, and no equity interests in Borrower may be Transferred, in each case, other than in compliance with Article II and other than the replacement or other disposition of obsolete or non-useful personal property and fixtures in the ordinary course of business, and Borrower shall not hereafter file a declaration of condominium with respect to the Property.

 

6.4.           Debt.  Borrower shall not have any Debt, other than Permitted Debt.

 

6.5.           Dissolution; Merger or Consolidation.  Neither Borrower nor, if applicable, any Single-Purpose Equityholder shall dissolve, terminate, liquidate, merge with or consolidate into another Person without first causing the Loan to be assumed by a Qualified Successor Borrower pursuant to Section 2.2.

 

6.6.           Change in Business.  Borrower shall not make any material change in the scope or nature of its business objectives, purposes or operations or undertake or participate in activities other than the continuance of its present business.

 

6.7.           Debt Cancellation.  Borrower shall not cancel or otherwise forgive or release any material claim or Debt owed to it by any Person, except for adequate consideration or in the ordinary course of its business.

 

6.8.           Affiliate Transactions.  Borrower shall not enter into, or be a party to, any transaction with any affiliate of Borrower, except on terms which are no less favorable to Borrower than would be obtained in a comparable arm’s length transaction with an unrelated third party.

 

  

64

  

 

6.9.           Misapplication of Funds.  Borrower shall not (a) distribute any Revenue or Loss Proceeds in violation of the provisions of this Agreement (and shall promptly cause the reversal of any such distributions made in error of which Borrower becomes aware), (b) fail to remit amounts to the Cash Management Account as required by Section 3.1, or (c) misappropriate any security deposit or portion thereof.

 

6.10.         Jurisdiction of Formation.  Borrower shall not change its jurisdiction of formation without receiving Lender’s prior written consent and promptly providing Lender such information and replacement Uniform Commercial Code financing statements and legal opinions as Lender may reasonably request in connection therewith.

 

6.11.         Modifications and Waivers.  Unless otherwise consented to in writing by Lender:

 

 (i)            Borrower shall not amend, modify, terminate, renew, or surrender any rights or remedies under any Lease, or enter into any Lease, except in compliance with Section 5.7;

 

(ii)            Neither Borrower nor, if applicable, any Single-Purpose Equityholder shall terminate, amend or modify its organizational documents (including, without limitation, any operating agreement, limited partnership agreement, by-laws, certificate of formation, certificate of limited partnership or certificate of incorporation);

 

(iii)           Borrower shall not terminate, amend or modify the Approved Management Agreement; and

 

(iv)           Borrower shall not amend, modify, surrender or waive any material rights or remedies under, or enter into or terminate, or default in its obligations under, any Material Agreement.

 

6.12.         ERISA.

 

(a)            Borrower shall not maintain or contribute to, or agree to maintain or contribute to, or permit any ERISA Affiliate of Borrower to maintain or contribute to or agree to maintain or contribute to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV or Section 302 of ERISA or Section 412 of the Code.

 

(b)            Borrower shall not engage in a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code, or substantially similar provisions under federal, state or local laws, rules or regulations or in any transaction that would cause any obligation or action taken or to be taken hereunder (or the exercise by Lender of any of its rights under the Notes, this Agreement, the Mortgage or any other Loan Document) to be a non-exempt prohibited transaction under such provisions.

 

6.13.        Alterations and Expansions.  During the continuance of any Trigger Period or Event of Default, Borrower shall not perform or contract to perform any capital improvements requiring Capital Expenditures that are not consistent with the Approved Annual Budget.  Borrower shall not perform, undertake, contract to perform or consent to any Material Alteration without the prior written consent of Lender, which consent (in the absence of an Event of Default) shall not be unreasonably withheld.  If Lender’s consent is requested hereunder with respect to a Material Alteration, Lender may retain a construction consultant to review such request and, if such request is granted, Lender may retain a construction consultant to inspect the work from time to time.  Borrower shall, on demand by Lender, reimburse Lender for the reasonable fees and disbursements of such consultant.

 

  

65

  

 

6.14.         Advances and Investments.  Borrower shall not lend money or make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any Person, except for Permitted Investments.

 

6.15.         Single-Purpose Entity.  Borrower shall not cease to be a Single-Purpose Entity.  Borrower shall not remove or replace any Independent Director without providing at least two Business Days’ advance written notice thereof to Lender and the Rating Agencies.

 

6.16.         Zoning and Uses.   Borrower shall not do any of the following:

 

(i)             initiate or support any limiting change in the permitted uses of the Property (or to the extent applicable, zoning reclassification of the Property) or any portion thereof, seek any variance under existing land use restrictions, laws, rules or regulations (or, to the extent applicable, zoning ordinances) that would have a Material Adverse Effect on the Property, or use or permit the use of the Property in a manner that would result in the use of the Property becoming a nonconforming use under applicable land-use restrictions or zoning ordinances or that would violate the terms of any Lease, Material Agreement or Legal Requirement (and if under applicable zoning ordinances the use of all or any portion of the Property is a nonconforming use, Borrower shall not cause or permit such nonconforming use to be discontinued or abandoned without the express written consent of Lender);

 

(ii)            consent to any modification, amendment or supplement to any of the terms of, or materially default in its obligations under, any Permitted Encumbrance;

 

(iii)           impose or consent to the imposition of any restrictive covenants, easements or encumbrances upon the Property in any manner that adversely affects in any material respect its value, utility or transferability;

 

(iv)           execute or file any subdivision plat affecting the Property, or institute, or permit the institution of, proceedings to alter any tax lot comprising the Property;

 

(v)            amend or cause to be amended any Material Agreement in any manner that might diminish (x) the value of the Property or (y) the rights of Borrower or Lender thereunder, or terminate the same for any reason or purpose whatsoever, in each case, without the prior written consent of Lender; or

 

  

66

  

 

(vi)           permit or consent to the  Property’s being used by the public or any Person in such manner as might make possible a claim of adverse usage or possession or of any implied dedication or easement.

 

6.17.         Waste.  Borrower shall not commit or permit any Waste on the Property, nor take any actions that might invalidate any insurance carried on the Property (and Borrower shall promptly correct any such actions of which Borrower becomes aware).

 

ARTICLE VII

 

DEFAULTS

 

7.1.           Event of Default.  The occurrence of any one or more of the following events shall be, and shall constitute the commencement of, an “Event of Default” hereunder (any Event of Default which has occurred shall continue unless and until waived by Lender in its sole discretion):

 

(a)            Payment.

 

(i)             Borrower shall default in the payment when due of any principal or interest owing hereunder or under the Notes (including any mandatory prepayment required hereunder); or

 

(ii)            Borrower shall default, and such default shall continue for at least two Business Days after notice to Borrower that such amounts are owing, in the payment when due of fees, expenses or other amounts owing hereunder, under the Notes or under any of the other Loan Documents (other than principal and interest owing hereunder or under the Note).

 

 (b)           Representations.  Any representation made by Borrower in any of the Loan Documents, or in any report, certificate, financial statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect (or, with respect to any representation which itself contains a materiality qualifier, in any respect) as of the date such representation was made.

 

(c)            Other Loan Documents.  Any Loan Document shall fail to be in full force and effect or to convey the material Liens, rights, powers and privileges purported to be created thereby; or a default shall occur under any of the other Loan Documents or Material Agreements, in each case, beyond the expiration of any applicable cure period.

 

(d)            Bankruptcy, etc.

 

  

67

  

 

(i)             Borrower or, if applicable, any Single-Purpose Equityholder shall commence a voluntary case concerning itself under Title 11 of the United States Code (as amended, modified, succeeded or replaced, from time to time, the “Bankruptcy Code”);

 

(ii)            Borrower or, if applicable, any Single-Purpose Equityholder shall commence any other proceeding under any reorganization, arrangement, adjustment of debt, relief of creditors, dissolution, insolvency or similar law of any jurisdiction whether now or hereafter in effect relating to Borrower or such Single-Purpose Equityholder, or shall dissolve or otherwise cease to exist;

 

(iii)           there is commenced against Borrower or, if applicable, any Single-Purpose Equityholder an involuntary case under the Bankruptcy Code, or any such other proceeding, which remains undismissed for a period of 90 days after commencement;

 

(iv)           Borrower or, if applicable, any Single-Purpose Equityholder is adjudicated insolvent or bankrupt;

 

(v)            Borrower or, if applicable, any Single-Purpose Equityholder suffers appointment of any custodian or the like for it or for any substantial portion of its property and such appointment continues unchanged or unstayed for a period of 90 days after commencement of such appointment;

 

(vi)           Borrower or, if applicable, any Single-Purpose Equityholder makes a general assignment for the benefit of creditors; or

 

(vii)          any action is taken by Borrower or, if applicable, any Single-Purpose Equityholder for the purpose of effecting any of the foregoing.

 

(e)            Change of Control.

 

(i)             A Prohibited Change of Control shall occur; or

 

(ii)            any party shall acquire more than 49% of the direct or indirect equity interest in Borrower or a Single-Purpose Equityholder (even if not constituting a Prohibited Change of Control) and Borrower shall fail to deliver to Lender with respect to such new equityholder a new non-consolidation opinion satisfactory to (A) prior to the occurrence of any Securitization of the Loan, Lender (Lender’s approval of any such non-consolidation opinion which is in substantially the form of the Nonconsolidation Opinion not to be unreasonably withheld), and (B) at any time following any Securitization or series of Securitizations of the Loan, each of the Rating Agencies rating such Securitization or Securitizations.

 

 (f)            Equity Pledge; Preferred Equity.  Any direct or indirect equity interest in or right to distributions from Borrower shall be subject to a Lien in favor of any Person, or Borrower or any holder of a direct or indirect interest in Borrower shall issue preferred equity (or debt granting the holder thereof rights substantially similar to those generally associated with preferred equity); except that the following shall be permitted:

 

  

68

  

 

(i)             any pledge of direct and indirect equity interests in and rights to distributions from a Qualified Equityholder (including, without limitation, a pledge by Sponsor of up to 49% of the direct equity interests in Borrower pursuant to Section 2.3(c)); and

 

(ii)            the issuance of preferred equity interests in a Qualified Equityholder.

 

(g)            Insurance.  Borrower shall fail to maintain in full force and effect all Policies required hereunder.

 

(h)            ERISA; Negative Covenants.  A default shall occur in the due performance or observance by Borrower of any term, covenant or agreement contained in Section 5.8 or in Article VI.

 

(i)             Legal Requirements.  If Borrower fails to cure properly any violations of Legal Requirements affecting all or any portion of the Property within 30 days after Borrower first receives written notice of any such violations; provided, however, if any such violation is reasonably susceptible of cure, but not within such 30 day period, then Borrower shall be permitted up to an additional 90 days to cure such violation provided that Borrower commences a cure within such initial 30 day period and thereafter diligently and continuously pursues such cure.

 

(i)             Other Covenants.  A default shall occur in the due performance or observance by Borrower of any term, covenant or agreement (other than those referred to in subsections (a) through (i), inclusive, of this Section 7.1) contained in this Agreement or in any of the other Loan Documents, except that in the case of a default that can be cured by the payment of money, such default shall not constitute an Event of Default unless and until it shall remain uncured for 10 days after Borrower receives written notice thereof; and in the case of a default that cannot be cured by the payment of money but is susceptible of being cured within 30 days, such default shall not constitute an Event of Default unless and until it remains uncured for 30 days after Borrower receives written notice thereof, provided that within 5 days of its receipt of such written notice, Borrower delivers written notice to Lender of its intention and ability to effect such cure within such 30 day period; and if such non-monetary default is not cured within such 30 day period despite Borrower’s diligent efforts but is susceptible of being cured within 90 days of Borrower’s receipt of Lender’s original notice, then Borrower shall have such additional time as is reasonably necessary to effect such cure, but in no event in excess of 90 days from Borrower’s receipt of Lender’s original notice, provided that prior to the expiration of the initial 30 day period, Borrower delivers written notice to Lender of its intention and ability to effect such cure prior to the expiration of such 90 day period.

 

7.2.           Remedies.

 

(a)            During the continuance of an Event of Default, Lender may by written notice to Borrower, in addition to any other rights or remedies available pursuant to this Agreement, the Notes, the Mortgage and the other Loan Documents, at law or in equity, declare by written notice to Borrower all or any portion of the Indebtedness to be immediately due and payable, whereupon all or such portion of the Indebtedness shall so become due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and the Property (including all rights or remedies available at law or in equity); provided, however, that, notwithstanding the foregoing, if an Event of Default specified in paragraph 7.1(d) shall occur, then the Indebtedness shall immediately become due and payable without the giving of any notice or other action by Lender.  Any actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth in this Agreement or in the other Loan Documents.

 

  

69

  

 

(b)            If Lender forecloses on the Property, Lender shall apply all net proceeds of such foreclosure to repay the Indebtedness, the Indebtedness shall be reduced to the extent of such net proceeds and the remaining portion of the Indebtedness shall remain outstanding and secured by the Property and the other Loan Documents, it being understood and agreed by Borrower that Borrower is liable for the repayment of all the Indebtedness; provided, however, that at the election of Lender, the Notes shall be deemed to have been accelerated only to the extent of the net proceeds actually received by Lender with respect to the Property and applied in reduction of the Indebtedness.

 

(c)            During the continuance of any Event of Default (including an Event of Default resulting from a failure to satisfy the insurance requirements specified herein), Lender may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation hereunder, take any action to cure such Event of Default.  Lender may enter upon any or all of the Property upon reasonable notice to Borrower for such purposes or appear in, defend, or bring any action or proceeding to protect its interest in the Property or to foreclose the Mortgage or collect the Indebtedness.  The costs and expenses incurred by Lender in exercising rights under this Section (including reasonable attorneys’ fees), with interest at the Default Rate for the period after notice from Lender that such costs or expenses were incurred to the date of payment to Lender, shall constitute a portion of the Indebtedness, shall be secured by the Mortgage and other Loan Documents and shall be due and payable to Lender upon demand therefor.

 

(d)            Interest shall accrue on any judgment obtained by Lender in connection with its enforcement of the Loan at a rate of interest equal to the Default Rate.

 

7.3.           No Waiver.  No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed by Lender to be expedient.  A waiver of any Default or Event of Default shall not be construed to be a waiver of any subsequent Default or Event of Default or to impair any remedy, right or power consequent thereon.

 

7.4.          Application of Payments after an Event of Default.  Notwithstanding anything to the contrary contained herein, during the continuance of an Event of Default, all amounts received by Lender in respect of the Loan shall be applied at Lender’s sole discretion either toward the components of the Indebtedness (e.g., Lender’s expenses in enforcing the Loan, interest, principal and other amounts payable hereunder) and the Notes in such sequence as Lender shall elect in its sole discretion, or toward the payment of Property expenses.

 

  

70

  

 

ARTICLE VIII

 

CONDITIONS PRECEDENT

 

8.1.           Conditions Precedent to Closing.  This Agreement shall become effective on the date that all of the following conditions shall have been satisfied (or waived in accordance with Section 9.3):

 

(a)            Loan Documents.  Lender shall have received a duly executed copy of each Loan Document.  Each Loan Document which is to be recorded in the public records shall be in form suitable for recording.

 

(b)            Collateral Accounts.  Each of the Collateral Accounts shall have been established with the Cash Management Bank and funded to the extent required under Article III.

 

(c)            Opinions of Counsel.  Lender shall have received, in each case in form and substance satisfactory to Lender, (i) a legal opinion with respect to the laws of the state in which the Property is located, (ii) a bankruptcy nonconsolidation opinion with respect to each Person owning at least a 49% direct or indirect equity interest in Borrower, if applicable, any Single-Purpose Equityholder and any affiliated property manager, and (iii) a Delaware legal opinion.

 

(d)            Organizational Documents.  Lender shall have received all documents reasonably requested by Lender relating to the existence of Borrower, the validity of the Loan Documents and other matters relating thereto, in form and substance satisfactory to Lender, including:

 

(i)             Authorizing Resolutions.  A certified copy of the resolutions approving and adopting the Loan Documents to be executed by Borrower and authorizing the execution and delivery thereof.

 

(ii)            Organizational Documents.  Certified copies of the organizational documents of Borrower and, if applicable, any Single-Purpose Equityholder (including any certificate of formation, certificate of limited partnership, certificate of incorporation, operating agreement, limited partnership agreement or by-laws), in each case together with all amendments thereto.

 

(iii)           Certificates of Good Standing or Existence.  Certificates of good standing or existence for Borrower and, if applicable, any Single-Purpose Equityholder issued as of a recent date by its state of organization and by the state in which the Property is located.

 

  

71

  

 

(iv)           Recycled Entity Certificate.  A recycled entity certificate acceptable to Lender, to the extent that Borrower was formed more than 60 days prior to the date hereof.

 

(e)            Lease; Material Agreements.  Lender shall have received true and complete copies of all Leases and all Material Agreements.

(f)             Lien Search Reports.  Lender shall have received satisfactory reports of Uniform Commercial Code, tax lien, bankruptcy and judgment searches conducted by a search firm acceptable to Lender with respect to the Property and Borrower (including Borrower’s immediate predecessor, if any), such searches to be conducted in such locations as Lender shall have requested.

(g)            No Default or Event of Default.  No Default or Event of Default shall have occurred and be continuing on such date either before or after the execution and delivery of this Agreement.

 

(h)            No Injunction.  No Legal Requirement shall exist, and no litigation shall be pending or threatened, which in the good faith judgment of Lender would enjoin, prohibit or restrain, or impose or result in the imposition of any material adverse condition upon, the making or repayment of the Loan or the consummation of the Transaction.

 

(i)             Representations.  The representations in this Agreement and in the other Loan Documents shall be true and correct in all respects on and as of the Closing Date with the same effect as if made on such date.

 

(j)             Estoppel Letters.  Borrower shall have received and delivered to Lender estoppel certificates in such form and substance as shall be satisfactory to Lender from Tenants under all Major Leases and from Tenants occupying not less than 75% of the remaining gross leasable area of the improvements on the Property and responsible for not less than 75% of the remaining gross leasable income from the improvements on the Property.

 

(k)            No Material Adverse Effect.  No event or series of events shall have occurred which Lender reasonably believes has had or is reasonably likely to have a Material Adverse Effect.

 

(l)             Transaction Costs.  Borrower shall have paid all transaction costs (or provided for the direct payment of such transaction costs by Lender from the proceeds of the Loan).

 

(m)           Insurance.  Lender shall have received certificates of insurance on ACORD Form 25 for liability insurance and ACORD Form 28 for casualty insurance, demonstrating insurance coverage in respect of the Property of types, in amounts, with insurers and otherwise in compliance with the terms, provisions and conditions set forth in this Agreement.  Such certificates shall indicate that Lender and its successors and assigns are named as additional insured on each liability policy, and that each casualty policy and rental interruption policy contains a loss payee and mortgagee endorsement in favor of Lender, its successors and assigns.

 

  

72

  

 

(n)           Title.  Lender shall have received a marked, signed commitment to issue, or a pro-forma version of, a Qualified Title Insurance Policy in respect of the Property, listing only such exceptions as are reasonably satisfactory to Lender.   If the Qualified Title Policy is to be issued by, or if disbursement of the proceeds of the Loan are to be made through, an agent of the actual insurer under the Qualified Title Policy (as opposed to the insurer itself), the actual insurer shall have issued to Lender for Lender’s benefit a so-called “Insured Closing Letter.”

 

(o)            Zoning.  Lender shall have received evidence reasonably satisfactory to Lender that the Property is in compliance with all applicable zoning requirements in the form of a zoning report.

 

(p)            Permits; Certificate of Occupancy.  Lender shall have received a copy of all Permits necessary for the use and operation of the Property and the certificate(s) of occupancy, if required, for the Property, all of which shall be in form and substance reasonably satisfactory to Lender.

 

(q)            Engineering Report.  Lender shall have received a current Engineering Report with respect to the Property, which report shall be in form and substance reasonably satisfactory to Lender.

 

(r)             Environmental Report.  Lender shall have received an Environmental Report (not more than six months old) with respect to the Property which discloses no material environmental contingencies with respect to the Property.

 

(s)            Qualified Survey.  Lender shall have received a Qualified Survey with respect to the Property in form and substance reasonably satisfactory to Lender.

 

(t)             Appraisal.  Lender shall have obtained an Appraisal of the Property satisfactory to Lender.

 

(u)            Consents, Licenses, Approvals, etc.  Lender shall have received copies of all consents, licenses and approvals, if any, required in connection with the execution, delivery and performance by Borrower, and the validity and enforceability, of the Loan Documents, and such consents, licenses and approvals shall be in full force and effect.

 

(v)            Financial Information.  Lender shall have received financial information relating to the Sponsor, Borrower and the Property which is satisfactory to Lender.

 

(w)           Annual Budget.  Lender shall have received the 2010 Annual Budget with respect to the Property.

 

(x)            Additional Matters.  Lender shall have received such other certificates, opinions, documents and instruments relating to the Loan as may have been reasonably requested by Lender.  All corporate and other proceedings, all other documents (including all documents referred to in this Agreement and not appearing as exhibits to this Agreement) and all legal matters in connection with the Loan shall be reasonably satisfactory in form and substance to Lender.

 

  

73

  

 

ARTICLE IX

 

MISCELLANEOUS

 

9.1.           Successors.  Except as otherwise provided in this Agreement, whenever in this Agreement any of the parties to this Agreement is referred to, such reference shall be deemed to include the successors and permitted assigns of such party.  All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower, shall inure to the benefit of Lender and its successors and assigns.

 

9.2.           GOVERNING LAW.

 

(A)          THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TENNESSEE WITHOUT REGARD TO CHOICE OF LAW RULES.

 

 (B)          ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST BORROWER OR THE SPONSOR ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (OTHER THAN ANY ACTION IN RESPECT OF THE CREATION, PERFECTION OR ENFORCEMENT OF A LIEN AGAINST THE PROPERTY OR THE RENTS) MAY BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK.  BORROWER AND THE SPONSOR HEREBY (i) IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM, (ii) IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND (iii) IRREVOCABLY CONSENT  TO SERVICE OF PROCESS BY MAIL, PERSONAL SERVICE OR IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, AT THE ADDRESS SPECIFIED IN SECTION 9.4.

 

9.3.           Modification, Waiver in Writing.  Neither this Agreement nor any other Loan Document may be amended, changed, waived, discharged or terminated, nor shall any consent or approval of Lender be granted hereunder, unless such amendment, change, waiver, discharge, termination, consent or approval is in writing signed by Lender.

 

9.4.           Notices.  All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be given in writing by expedited prepaid delivery service, either commercial or United States Postal Service, with proof of delivery or attempted delivery, addressed as follows (or at such other address and person as shall be designated from time to time by any party to this Agreement, as the case may be, in a written notice to the other parties to this Agreement in the manner provided for in this Section).  A notice shall be deemed to have been given when delivered or upon refusal to accept delivery.

 

  

74

  

 

If to Lender:

 

Goldman Sachs Commercial Mortgage Capital, L.P.

6011 Connection Drive, Suite 550

Irving, Texas 75039

Attention: Michael Forbes

 

with copies to:

 

Goldman Sachs Mortgage Company

200 West Street

New York, New York 10282

Attention:  Daniel Bennett and J. Theodore Borter

and

 

Cleary Gottlieb Steen & Hamilton LLP

One Liberty Plaza

New York, New York 10006

Attention: Michael Weinberger, Esq.

 

If to Borrower:

 

Glimcher MJC, LLC

c/o Glimcher Properties Limited Partnership

180 East Broad Street

Columbus, Ohio 43215

Attention: General Counsel

 

with a copy to:

Glimcher MJC, LLC

c/o Glimcher Properties Limited Partnership

180 East Broad Street

Columbus, Ohio  43215

Attention:  Treasurer

9.5.  TRIAL BY JURY.  BORROWER AND THE SPONSOR, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND THE SPONSOR AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.  LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER AND THE SPONSOR.

 

  

75

  

 

9.6.           Headings.  The Article and Section headings in this Agreement are included in this Agreement for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

9.7.           Assignment and Participation.

 

(a)            Except as explicitly set forth in Sections 2.1 and 2.2, Borrower may not sell, assign or transfer any interest in the Loan Documents or any portion thereof (including Borrower’s rights, title, interests, remedies, powers and duties hereunder and thereunder).

 

(b)            Lender and each assignee of all or a portion of the Loan shall have the right from time to time in its discretion to sell one or more of the Notes or any interest therein (an “Assignment”) and/or sell a participation interest in one or more of the Notes (a “Participation”).  Borrower agrees reasonably to cooperate with Lender, at Lender’s request, in order to effectuate any such Assignment or Participation.  In the case of an Assignment, (i) each assignee shall have, to the extent of such Assignment, the rights, benefits and obligations of the assigning Lender as a “Lender” hereunder and under the other Loan Documents, (ii) the assigning Lender shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to an Assignment, relinquish its rights and be released from its obligations under this Agreement, and (iii) one Lender shall serve as agent for all Lenders and shall be the sole Lender to whom notices, requests and other communications shall be addressed and the sole party authorized to grant or withhold consents hereunder on behalf of the Lenders (subject, in each case, to appointment of a Servicer, pursuant to Section 9.22, to receive such notices, requests and other communications and/or to grant or withhold consents, as the case may be) and to be the sole Lender to designate the account to which payments shall be made by Borrower to the Lenders hereunder.  Goldman Sachs Mortgage Company or, upon the appointment of a Servicer, such Servicer, shall maintain, or cause to be maintained, as agent for Borrower, a register on which it shall enter the name or names of the registered owner or owners from time to time of the Notes.  Borrower agrees that upon effectiveness of any Assignment of any Note in part, Borrower will promptly provide to the assignor and the assignee separate promissory notes in the amount of their respective interests (but, if applicable, with a notation thereon that it is given in substitution for and replacement of an original Note or any replacement thereof), and otherwise in the form of such Note, upon return of the Note then being replaced.  The assigning Lender shall notify in writing each of the other Lenders of any Assignment.  Each potential or actual assignee, participant or investor in a Securitization, and each Rating Agency, shall be entitled to receive all information received by Lender under this Agreement.  After the effectiveness of any Assignment, the party conveying the Assignment shall provide notice to Borrower and each Lender of the identity and address of the assignee.  Notwithstanding anything in this Agreement to the contrary, after an Assignment, the assigning Lender (in addition to the assignee) shall continue to have the benefits of any indemnifications contained in this Agreement that such assigning Lender had prior to such assignment with respect to matters occurring prior to the date of such assignment.

 

  

76

  

 

(c)            Borrower shall cooperate with Lender in effecting any bifurcation of the Notes, Assignment, Participation or Securitization.  Borrower shall execute such notes, modifications and other agreements, and provide such information, legal opinions and documents relating to Borrower, any Single-Purpose Equityholder, Sponsor, the Property and any Tenants as Lender may reasonably request in connection with such Assignment, Participation or Securitization, all at Lender’s expense, except for Borrower’s legal fees and the costs of forming, maintaining and administering additional borrower entities (including, without limitation, fees paid to Independent Directors) to accommodate any such bifurcation of the Notes, Assignment, Participation or Securitization.  Borrower shall make available to Lender all information concerning its business and operations that Lender may reasonably request.  Subject to Section 9.24, it is understood that the information provided by Borrower to Lender may ultimately be disclosed to actual or potential assignees, participants and/or pledgees, and may be incorporated into the offering documents for a Securitization, and thus various investors may also see some or all of the information.  Lender, all such potential assignees, participants and/or pledgees and all of their respective advisors and professional firms shall be entitled to rely on the information supplied by, or on behalf of, Borrower, and Borrower hereby indemnifies Lender as to any Damages that arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in such information or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in such information or necessary in order to make the statements in such information, or in light of the circumstances under which they were made, not misleading.

 

(d)            If, pursuant to this Section 9.7, any interest in this Agreement or any Note is transferred to any transferee that is not a U.S. Person, the transferor Lender shall cause such transferee, concurrently with the effectiveness of such transfer, (i) to furnish to the transferor Lender either Form W-8BEN or Form W-8ECI or any other form in order to establish an exemption from, or reduction in the rate of, U.S. withholding tax on all interest payments hereunder, and (ii) to agree (for the benefit of Lender and Borrower) to provide the transferor Lender a new Form W-8BEN or Form W-8ECI or any forms reasonably requested in order to establish an exemption from, or reduction in the rate of, U.S. withholding tax upon the expiration or obsolescence of any previously delivered form and comparable statements in accordance with applicable U.S. laws and regulations and amendments duly executed and completed by such transferee, and to comply from time to time with all applicable U.S. laws and regulations with regard to such withholding tax exemption.

 

9.8.           Severability.  Wherever possible, each provision of this Agreement shall be interpreted in such 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 provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 

  

77

  

 

9.9.           Preferences.  Lender shall have no obligation to marshal any assets in favor of Borrower or any other party or against or in payment of any or all of the obligations of Borrower pursuant to this Agreement, the Notes or any other Loan Document.  Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder and under the Loan Documents.  To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any portion thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside 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 payment or proceeds received, the obligations hereunder or portion thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender.

 

9.10.         Remedies of Borrower.  If a claim is made that Lender or its agents have unreasonably delayed acting or acted unreasonably in any case where by law or under this Agreement, the Notes, the Mortgage or the other Loan Documents, any of such Persons has an obligation to act promptly or reasonably, Borrower agrees that no such Person shall be liable for any monetary damages, and Borrower’s sole remedy shall be limited to commencing an action seeking specific performance, injunctive relief and/or declaratory judgment.  Without in any way limiting the foregoing, Borrower shall not assert, and hereby waives, any claim against Lender and/or its affiliates, directors, employees, attorneys, agents or sub-agents, on any theory of liability, for direct, special, indirect, consequential or punitive damages (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, as a result of, or in any way related to, the Loan Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and Borrower hereby waives, releases and agrees not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 

9.11.         Offsets, Counterclaims and Defenses.  All payments made by Borrower hereunder or under the other Loan Documents shall be made irrespective of, and without any deduction for, any setoffs or counterclaims.  Borrower waives the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against it by Lender arising out of or in any way connected with the Notes, this Agreement, the other Loan Documents or the Indebtedness.  Any assignee of Lender’s interest in the Loan shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to the Loan.

 

9.12.         No Joint Venture.  Nothing in this Agreement is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender, nor to grant Lender any interest in the Property other than that of mortgagee or lender.

 

9.13.         Conflict; Construction of Documents.  In the event of any conflict between the provisions of this Agreement and the provisions of the Notes, the Mortgage or any of the other Loan Documents, the provisions of this Agreement shall prevail.

 

  

78

  

 

9.14.         Brokers and Financial Advisors.  Borrower and Sponsor each represent that they have dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement.  Borrower and Sponsor each agree, jointly and severally, to indemnify and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any kind in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower in connection with the transactions contemplated in this Agreement.  The provisions of this Section 9.14 shall survive the expiration and termination of this Agreement and the repayment of the Indebtedness.

 

9.15.         Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.

 

9.16.         Estoppel Certificates.  Borrower agrees at any time and from time to time, to execute, acknowledge and deliver to Lender, within five Business Days after receipt of Lender’s written request therefor, a statement in writing setting forth (A) the Principal Indebtedness, (B) the date on which installments of interest and/or principal were last paid, (C) any offsets or defenses to the payment of the Indebtedness, (D) that the Notes, this Agreement, the Mortgage and the other Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving particulars of such modification, (E) that neither Borrower nor, to Borrower’s knowledge, Lender, is in default under the Loan Documents (or specifying any such default), and (F)  that all Leases are in full force and effect and have not been modified (except in accordance with the Loan Documents), (G) whether or not any of the Tenants under the Leases are in material default under the Leases (setting forth the specific nature of any such material defaults) and (H) such other matters as Lender may reasonably request.  Any prospective purchaser of any interest in a Loan shall be permitted to rely on such certificate.

 

9.17.         Payment of Expenses; Mortgage Recording Taxes.  Borrower shall reimburse Lender upon receipt of written notice from Lender for (i) all reasonable out-of-pocket costs and expenses incurred by Lender (or any of its affiliates) in connection with the origination of the Loan, including legal fees and disbursements, accounting fees, and the costs of the Appraisal, the Engineering Report, the Qualified Title Insurance Policy, the Qualified Survey, the Environmental Report and any other third-party diligence materials; (ii) all reasonable out-of-pocket costs and expenses incurred by Lender (or any of its affiliates) in connection with (A) monitoring Borrower’s ongoing performance of and compliance with Borrower’s agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including confirming compliance with environmental and insurance requirements, (B) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters requested by Borrower or by Lender, (C) filing, registration or recording fees and expenses and other similar expenses incurred in creating and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents (including, without limitation, the filing, registration or recording of any instrument of further assurance) and all federal, state, county and municipal, taxes (including, without limitation, if applicable, intangible taxes), duties, imposts, assessments and charges arising out of or in connection with the execution and delivery of the Loan Documents, any mortgage supplemental thereto, any security instrument with respect to the Collateral or any instrument of further assurance, (D) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents or any Collateral, and (E) the satisfaction of the Rating Condition required or requested by Borrower hereunder; and (iii) all actual out-of-pocket costs and expenses (including, if the Loan has been securitized, special servicing fees) incurred by Lender (or any of its affiliates) in connection with the enforcement of any obligations of Borrower, or a Default by Borrower, under the Loan Documents, including any actual or attempted foreclosure, deed-in-lieu of foreclosure, refinancing, restructuring or workout and any insolvency or bankruptcy proceedings (including any applicable transfer taxes).

 

  

79

  

 

9.18.         No Third-Party Beneficiaries.  This Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower, and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein.  All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender, and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof, and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so.

 

9.19.         Recourse.

 

(a)            Except as expressly set forth in this Section 9.19, in Section 1.4(a), in Section 5.18, in Section 9.14, in the Environmental Indemnity Agreement and in the Cooperation Agreement, the Loan shall not be recourse to Borrower.  In addition, no recourse shall be had for the Loan against any other Person, including any affiliate of Borrower or any officer, director, partner or equityholder of Borrower or any such affiliate, unless expressly set forth in a Loan Document or other written agreement to which such Person is a party.

 

(b)            Borrower shall indemnify Lender and hold Lender harmless from and against any and all Damages to Lender (including the legal and other expenses of enforcing the obligations of Borrower under this Section 9.19 and the Sponsor under the Guaranty) resulting from or arising out of any of the following (the “Indemnified Liabilities”), which Indemnified Liabilities shall be guaranteed by Sponsor pursuant to the Guaranty:

 

  

80

  

 

(i)             any intentional or grossly negligent physical Waste with respect to the Property committed or permitted by Borrower, the Sponsor or any of their respective affiliates;

 

(ii)            any fraud, willful misconduct or intentional misrepresentation committed by Borrower, the Sponsor or any of their respective affiliates;

 

(iii)           the misappropriation or misapplication by Borrower, the Sponsor or any of their respective affiliates of any funds (including misappropriation or misapplication of Revenues, security deposits and/or Loss Proceeds and the violation of the last sentence of Section 5.7(d));

 

(iv)           any voluntary Debt if and to the extent prohibited hereunder (for these purposes, Debt will be regarded as voluntary if either incurred voluntarily or if not repaid by Borrower from available cash flow);

 

(v)            any breach by Borrower or the Sponsor of any representation or covenant regarding environmental matters contained in this Agreement or in the Environmental Indemnity;

 

(vi)           any presence of mold on the Property arising due to Borrower’s failure to maintain the Property in accordance with the Loan Documents;

 

(vii)          the failure to pay or maintain the Policies or pay the amount of any deductible required thereunder following a Casualty or other insurance claim;

 

(viii)         removal of personal property from the Property during or in anticipation of an Event of Default, unless replaced with personal property of the same utility and of the same or greater value and utility;

 

(ix)           any fees or commissions paid by Borrower to any affiliate in violation of the terms of this Agreement;

 

(x)            any bankruptcy of Borrower, provided that, for the purpose of this clause (x) “Damages” shall be limited to the amount by which such costs and expenses exceed the costs and expenses Lender would have incurred in an uncontested foreclosure on the Property (for the avoidance of doubt, the recourse described in this clause (x) shall be in addition to the full recourse for bankruptcy described below); and

 

(xi)           any amounts owed by Borrower from time to time pursuant to Section 5.14(b).

 

In addition to the foregoing, the Loan shall be fully recourse to Borrower and Sponsor, jointly and severally, upon (i) any Transfer of Collateral, voluntary or collusive Lien on Collateral, or Prohibited Change of Control, (ii) the occurrence of any filing by Borrower under the Bankruptcy Code or any joining or colluding by Borrower or any of its affiliates (including Sponsor) in the filing of an involuntary case in respect of Borrower under the Bankruptcy Code or (iii) the failure of Borrower to be, and to at all times have been, a Single-Purpose Entity.

 

  

81

  

 

9.20.         Right of Set-Off.  In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, Lender may from time to time, without presentment, demand, protest or other notice of any kind (all of such rights being hereby expressly waived), set-off and appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing by Lender (including branches, agencies or affiliates of Lender wherever located) to or for the credit or the account of Borrower against the obligations and liabilities of Borrower to Lender hereunder, under the Notes, the other Loan Documents or otherwise, irrespective of whether Lender shall have made any demand hereunder and although such obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any such set-off shall be deemed to have been made immediately upon the occurrence of an Event of Default even though such charge is made or entered on the books of Lender subsequent thereto.

 

9.21.         Exculpation of Lender.  Lender neither undertakes nor assumes any responsibility or duty to Borrower or any other party to select, review, inspect, examine, supervise, pass judgment upon or inform Borrower or any third party of (a) the existence, quality, adequacy or suitability of Appraisals of the Property or other Collateral, (b) any environmental report, or (c) any other matters or items, including engineering, soils and seismic reports which are contemplated in the Loan Documents.  Any such selection, review, inspection, examination and the like, and any other due diligence conducted by Lender, is solely for the purpose of protecting Lender’s rights under the Loan Documents, and shall not render Lender liable to Borrower or any third party for the existence, sufficiency, accuracy, completeness or legality thereof.

 

9.22.         Servicer.  Lender may delegate any and all rights and obligations of Lender hereunder and under the other Loan Documents to the Servicer upon notice by Lender to Borrower, whereupon any notice or consent from the Servicer to Borrower, and any action by Servicer on Lender’s behalf, shall have the same force and effect as if Servicer were Lender.

 

9.23.         No Fiduciary Duty.  Borrower acknowledges that Lender and its affiliates (collectively, solely for purposes of this paragraph, the “Lending Parties”) may have economic interests that conflict with those of Borrower, its stockholders and/or its affiliates.  Borrower agrees that nothing in this Agreement, the other Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lending Party, on the one hand, and Borrower, its stockholders or its Affiliates, on the other.  Borrower acknowledges and agrees that (i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lending Parties, on the one hand, and Borrower, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lending Party has assumed an advisory or fiduciary responsibility in favor of Borrower, its stockholders or its affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lending Party has advised, is currently advising or will advise Borrower, its stockholders or its Affiliates on other matters) or any other obligation to Borrower except the obligations expressly set forth in the Loan Documents and (y) each Lending Party is acting solely as principal and not as the agent or fiduciary of Borrower, its management, stockholders, creditors or any other Person.  Borrower acknowledges and agrees that Borrower has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  Borrower agrees that it will not claim that any Lending Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to Borrower, in connection with such transaction or the process leading thereto.

 

  

82

  

 

9.24          Disclosure of Borrower Information.  Lender shall have the right to disclose any and all information provided to Lender by Borrower or Sponsor regarding Borrower, Sponsor, the Loan and the Property (i) to affiliates of Lender and to Lender’s agents and advisors, (ii) to any bona fide or potential assignee, transferee or participant in connection with the contemplated assignment, transfer, participation or Securitization of all or any portion of the Loan or any participations therein or by any direct or indirect contractual counterparties (or the professional advisors thereto) to any swap or derivative transaction relating to Borrower and its obligations, in each case, to the extent reasonably required by such Person, (iii) to any Rating Agency in connection with a Securitization or as otherwise required in connection with a disposition of the Loan, (iv) to any Person necessary or desirable in connection with the exercise of any remedies hereunder or under any other Loan Document, (v) to any governmental agency or representative thereof or by the National Association of Insurance Commissioners or pursuant to legal or judicial process and (vi) in any Disclosure Document (as defined in the Cooperation Agreement).  In addition, Lender may disclose the existence of this Agreement and the information about this Agreement to market data collectors, similar services providers to the lending industry, and service providers to Lender in connection with the administration and management of this Agreement and the other Loan Documents.  Each party hereto (and each of their respective affiliates, employees, representatives or other agents) may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions and other tax analyses) that are provided to any such party relating to such tax treatment and tax structure.  For the purpose of this Section 9.24, “tax structure” means any facts relevant to the federal income tax treatment of the Transaction but does not include information relating to the identity of any of the parties hereto or any of their respective affiliates.

 

9.25.         PATRIOT Act Records.  Lender hereby notifies Borrower that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record information that identifies Borrower and Sponsor, which information includes the name and address of Borrower and Sponsor and other information that will allow Lender to identify Borrower or Sponsor in accordance with the PATRIOT Act.

 

9.26          Prior Agreements.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS CONTAIN THE ENTIRE AGREEMENT OF THE PARTIES HERETO AND THERETO IN RESPECT OF THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, AND ALL PRIOR AGREEMENTS AMONG OR BETWEEN SUCH PARTIES, WHETHER ORAL OR WRITTEN, INCLUDING ANY TERM SHEETS, CONFIDENTIALITY AGREEMENTS AND COMMITMENT LETTERS, ARE SUPERSEDED BY THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT THAT ANY ORIGINATION FEE SPECIFIED IN ANY TERM SHEET, COMMITMENT LETTER OR FEE LETTER SHALL BE AN OBLIGATION OF BORROWER AND SHALL BE PAID AT CLOSING, AND ANY INDEMNIFICATIONS,  FLEX PROVISION, EXIT FEES AND THE LIKE PROVIDED FOR THEREIN SHALL SURVIVE THE CLOSING).

 

  

83

  

 

9.27          Publicity.  If the Loan is made, Lender may issue press releases, advertisements and other promotional materials describing in general terms or in detail Lender's participation in such transaction, and may utilize photographs of the Property in such promotional materials.  Borrower shall not make any references to Lender in any press release, advertisement or promotional material issued by Borrower or Sponsor, unless Lender shall have approved of the same in writing prior to the issuance of such press release, advertisement or promotional material.  Sponsor and Glimcher Realty Trust shall have the right to issue a press release (subject to Lender’s prior written approval, to the extent such press release names Lender or any of its affiliates) and file an 8k with the Security and Exchange Commission in order to comply with legal requirements applicable to Sponsor and its affiliates.

 

  

84

  

 

Lender and Borrower are executing this Agreement as of the date first above written.

 

	  	
BORROWER:

 

GLIMCHER MJC, LLC,

a Delaware limited liability company

 

By:  Johnson City Venture, LLC,

        a Delaware limited liability company,

        its sole member

 

        By:  Glimcher Johnson City, Inc.,

                a Delaware corporation,

                its Managing Member

 

               By:   /s/ George A. Schmidt

                        George A. Schmidt

                        Executive Vice President

                        Chief Investment Officer

 

[Signatures continue on following page.]

 

  

85

  

 

	  	
LENDER:

 

GOLDMAN SACHS COMMERCIAL MORTGAGE

CAPITAL, L.P., a Delaware limited partnership

 

By:  _______________________________

        Name:

        Title:

 

  

86

  

 

Exhibit A

 

Organizational Chart

 

  

87

  

 

Exhibit B

Form of Tenant Notice

[BORROWER’S LETTERHEAD]

 

April __ , 2010

 

VIA CERTIFIED MAIL – RETURN RECEIPT REQUESTED

[Tenant name & address]

 

	
  

	
Re:

	
DBA Name

	
  

	
The Mall at Johnson City

	
  

	
Johnson City, Tennessee (the "Property")

Dear Tenant:

Please be advised that effective as of the date of this Notice, in connection with a refinancing of the mortgage on the above-referenced Property, Johnson City Venture, LLC has transferred ownership of the Property to a newly formed subsidiary, GLIMCHER MJC, LLC, and GLIMCHER MJC, LLC is now your new landlord (“Landlord”).  You are further advised that Landlord has granted a mortgage in favor of GOLDMAN SACHS COMMERCIAL MORTGAGE CAPITAL, L.P., a Delaware limited partnership (together with its successors and assigns "Lender") on the above-referenced Property in which you are a tenant.  Pursuant to the mortgage, the Landlord has granted a security interest in favor of Lender in the leases relating to the Property and all rents, additional rent and all other monetary obligations to Landlord thereunder (collectively, "Rent").  The Landlord hereby irrevocably instructs and authorizes you to disregard any and all previous notices sent to you in connection with Rent and hereafter to deliver all Rent to the following new address:

Glimcher MJC, LLC

L-1953

Columbus, OH 43260

All checks should be made payable to “Glimcher MJC, LLC”.

These payment instructions cannot be withdrawn or modified without the prior written consent of Lender or its agent (“Servicer”), or pursuant to a joint written instruction from Landlord and Lender or the Servicer.

 

  

88

  

You are hereby further advised that the Property will continue to be managed by Glimcher Properties Limited Partnership, as property manager.  In accordance with the terms of your lease, copies of all future notices to Landlord should be sent to:

Glimcher MJC, LLC

c/o Glimcher Properties Limited Partnership

180 East Broad Street, 21st Floor

Columbus, Ohio 43215

Attention: General Counsel

 

Also, in accordance with the provisions of your lease, please send an updated Certificate of Insurance naming the Landlord (Glimcher MJC, LLC) as Holder and additional insured; as well as naming the property manager (Glimcher Properties Limited Partnership) as additional insured parties.  The Certificate of Insurance should be sent to Landlord, Attention: Risk Management, at the address above with a copy also being sent to the Property office at the Mall at Johnson City.

Enclosed is a copy of an IRS W-9 form certifying the Federal Tax ID number for Glimcher MJC, LLC, as well as a blank gross sales reporting form, with instructions, for future use.  Please forward these items to the appropriate personnel of your company.

If you have any questions or need any additional information, please feel free to contact the management office at (614) 621-9000.

 

	
JOHNSON CITY VENTURE, LLC,

a Delaware limited liability company

	 	 	
GLIMCHER MJC, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 
	

By: Glimcher Johnson City, Inc.,

       a Delaware corporation,

       its managing member

	 	 	

By: Johnson City Venture, LLC,

       a Delaware limited liability company,

       its sole member

	 
	 	 	 	 	 
	

By: ______________________________

       George A. Schmidt

       Executive Vice President

	 	 	

By: Glimcher Johnson City, Inc.,

       a Delaware corporation,

       its managing member

	 
	 	 	 	 	 
	
 

	 	 	

By: _____________________________

	 
	
 

	 	 	

       George A. Schmidt

       Executive Vice President

	 
	
Enclosures:

 

	 	 	 	 
	       (1)           Copy of IRS Form W-9   	 	(2)           Blank Gross Sales Reporting Form	 

 

  

89

  

 

Schedule A

 

Property

 

 

PARCEL I

Land located in the City of Johnson City, County of Washington, State of Tennessee, more particularly described as follow:

BEGINNING AT an iron rod in the Westerly line of North Roan Street where said  line is intersected by the Southern line of the property of North Roan Building, Inc., as described in Deed of record in Book 351, Page 47, in the Register's Office of the said County, thence with the Southwesterly line of said North Roan Street South 21 degrees, 13 minutes, 54 seconds east, 555.47 feet to the Northeastern most corner of the property of First Tennessee Bank and Trust Company as described in the Deed of record in Deed Book 478, Page 188, in the aforesaid Register's Office; thence with said First Tennessee Bank and Trust Company property South 85 degrees, 12 minutes, 24 seconds West, 281.46 feet to an iron rod marking the Northwestern corner of said First Tennessee Bank and Trust Company property; thence with the Western line of said Bank property and continuing along the Western terminus of Mall Street (public) South 21 degrees, 13 minutes, 00 seconds East, a total distance of 344.24 feet to an iron rod; thence with Southern lines of Mall Street (public) the following two courses (1) Northeastwardly in a curve to the right; said curve having a radius of 25.00 feet, an arc length of 39.27 feet to an iron rod; (2) North 68 degrees, 47 minutes, 00 seconds East, 15.37 feet to an iron rod in the Northern lines of that property of General Mills Restaurant Group, Inc. described in Deed Book 559, Page 636, in the aforesaid Register's Office; thence along the Western lines of said General Mills property the following courses and dimensions: (1) Southwestwardly in a curve to the left, said curve having an arc length of 43.03 feet, a radius of 25.00 feet; (2) South 29 degrees, 51 minutes, 00 seconds East, 62.27 feet; (3) South 21 degrees, 13 minutes, 00 seconds East, 265.00 feet; (4) curve to the left having a length of 62.83 feet with a radius of 40.00 feet all to a point in the Western line of Mockingbird Lane (60' R.O.W., Public): thence with the Northwesterly 1ine of said Mockingbird Lane (public) the following two courses and dimensions: (1) South 68 degrees, 47 minutes, 00 seconds West, 31.39 feet to an iron rod; (2) South 48 degrees, 25 minutes, 03 seconds West, 1034.84 feet to an iron rod in the Northeasterly line of that property of David H. Walker (now or formerly) as conveyed by Deed of record in Deed Book 389, Page 513, in the aforesaid Register's Office; thence with said Walker's Northeastern line North 41 degrees, 35 minutes, 00 seconds West, 770.00 feet to a iron rod marking Walker's Northeastern or Northernmost corner; the same lying in the Southeastern line of that property conveyed to 2020 Northpark Ltd. as recorded in Deed Book 594, Page 115, in the aforesaid Register's Office; thence with Southeastern, Northeastern, Northern and Northwestern lines of said 2020 Northpark Ltd., property the following four courses and dimensions: (1) North 48 degrees, 25 minutes, 00 seconds East, 68.00 feet to an iron rod; (2) North 38 degrees, 47 minutes, 20 seconds West, 137.19 feet; (3) South 83 degrees, 23 minutes, 57 seconds West, 262.18 feet to an iron rod; (4) South 48 

 

  

90

  

 

degrees, 28 minutes, 18 seconds West, 45.77 feet; all to an iron rod in the Northeastern line of that property conveyed to Glenn E. Mize, et al, by Deed of record in Deed Book 384,

Page 117, in the aforesaid Register's Office; thence North 41 degrees, 39 minutes, 36 second West along said Mize line and continuing with the Northeastern line of North Side Subdivision as shown by plat of record in Plat Book 3, Page 118, in the aforesaid Register's office a total distance of 337.30 feet to an iron pipe corner of the property conveyed to Thomas Rowan by Deed of record in Deed Book 334, Page 351, in the aforesaid Register’s Office and the property conveyed to D.E. Taylor by Deed of record in Deed Book 368, Page 332, in the aforesaid Register's Office; thence North 38 degrees, 15 minutes, 04 seconds East with the Southeasterly lines of Bralley Addition (not recorded) said lines also being the Southeastern 1ines of the property of said Thomas Rowan, the Southeastern Terminus of Ivy Lane, and the property conveyed to Carroll Ann Rohrssen by Deed of record in Deed Book 578, Page 629, in the aforesaid Register's Office, a total distance of 399.02 feet to a planted stone; Thence North 30 degrees, 41 minutes, 30 seconds West, with Northeasterly line of said Rohrssen and continuing with the Northeasterly lines of the property conveyed to Jerry Mooney by Deed of record in Deed Book 490, Page 150 in the aforesaid Register's office and the property conveyed to Michael Bashor by Deed of record in Deed Book 522, Page 603, in the aforesaid Register's Office, a total distance of 372.18 feet to an iron rod lying in the present Southeastern line of said Sunset Drive as established by Deed of Confirmation recorded in Deed Book 710, Page 568, in the aforesaid Register's  office. Thence along said lines of Sunset Drive the following three courses and dimensions: (1) North 40 degrees, 39 minutes, 25 seconds East, 295.47 feet to an iron rod; (2) North 37 degrees, 47 minutes, 42 seconds East, 255.33 feet to an iron rod: (3) around a curve to the right with a radius of 35.00 feet, an arc length of 51.90 feet to an iron rod, said iron rod being at the intersection of Sunset Drive and Southern lines of Mountcastle Drive; thence with said lines of Mountcastle Drive the following two courses; (1) South 57 degrees, 14 minutes, 12 seconds East, 130.74 feet to an iron rod; (2) a curve to the left having a length of 198.76 feet, a radius of 612.96 feet to the Northwestern most corner of that property described in Boundary and Encroachment Agreement between Johnson City Mall Associates and Walter L. Harber found of record on Roll 85, Image 2162, in aforesaid Register's Office; thence along the Western lines of said Agreement the following three courses and dimensions: (1) South 34 degrees, 00 minutes, 38 seconds West, 55.52 feet; (2) South 27 degrees, 41 minutes, 42 seconds West, 65.17 feet; (3) South 16 degrees, 37 minutes, 38 seconds West, 38.24 feet all to the Southernmost corner of that property conveyed to Walter A. Harber by Deed of record in Deed Book 676, Page 41, Thence North 68 degrees, 37 minutes, 07 seconds East, along the Southeastern most line of said Harber property 364.74 feet to a point in the Southern or Southeastern line of aforesaid Mountcastle Drive; thence Northeasterly along said line of Mountcastle Drive in a curve to the left having a radius of 612.96 feet, an arc length of 110.87 feet to a concrete monument; thence continuing along said line of Mountcastle Drive North 68 degrees, 37 minutes, 08 seconds East, 108.05 feet to an iron rod in the Westernmost corner of that property conveyed to Fred Leonard by Deed of record in Deed Book 601, Page 202, an arc of the aforesaid Register's Office; thence South 23 degrees, 59 minutes, 56 seconds East with said Leonard's Southwestern line 165.93 feet to the Southwestern corner thereof; thence North 68 degrees, 42 minutes, 40 seconds East, along Leonard's Southeastern 1ine and continuing along the Southeastern line of afore described  North Roan Street Building Inc. property a total distance of 367.71 feet to the point of Beginning, all as shown on a Survey by David W. Barnes, Tenn. Reg. Land Surveyor No. 270, dated October 10, 1996, last revised May 16, 2000.

 

  

91

  

(Note: Any reference to acreage or square footage is for informational purposes only)

 

PARCEL II

Together with those rights and easements constituting rights in real property created defined and limited by that certain Reciprocal Easement Agreement by and between Provident Life and Accident Insurance Company, a Tennessee corporation and Cox-Valley Associates, a Tennessee partnership, dated October 8, 1982 and recorded October 8, 1982 in Miscellaneous Book 107, Page 174, amended by Amendment to Reciprocal Easement Agreement by and between Provident Life and Accident Insurance Company, a Tennessee corporation and Cox-Valley Associates, a Tennessee partnership, recorded December 27, 1982 in Miscellaneous Book 108, Page 632, both in the Register's Office of Washington County, Tennessee.

PARCEL III

Together with those rights and easements constituting rights in real property created defined and limited by that certain Access Easement by and between Independent’s J-C, Inc., a Tennessee corporation, Johnson City Mall, a Tennessee general partnership, North Roan Street Building, Inc., a Tennessee corporation and The Hamilton National Bank of Johnson City, a national banking corporation, dated September 16, 1970 and recorded in Miscellaneous Book 58, Page 62, in the Register's Office of  Washington County, Tennessee.

PARCEL IV

Together with those rights and easements constituting rights in real property created defined and limited by that certain Cross Easement Agreement by and between Johnson City Mall Associates, a Delaware general partnership and First Tennessee Bank National Association, a national banking corporation, dated June 24, 1991 and recorded July 11, 1991 in Miscellaneous Book 174, Page 259, in the Register’s Office of Washington County, Tennessee.

AND BEING the same property conveyed by Special Warranty Deed by and between Johnson City Mall Associates and Johnson City Venture, LLC, dated November 15, 1996 and recorded November 15, 1996 in Roll 102, Image 1065, in the Register’s Office, Tennessee.

The above description being also described as the following legal description prepared by Gregory W. Maxwell, a Professional Land Surveyor of Civil & Environmental Consultant’s Inc.:

LAND LOCATED IN THE CITY OF JOHNSON CITY, COUNTY OF WASHINGTON, STATE OF TENNESSEE, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

  

92

  

BEGINNING AT A PK NAIL IN A SIDEWALK, SAID POINT BEING AT THE SOUTHEAST CORNER OF THE PROPERTY OF NORTH ROAN STREET BUILDING, INC. AS OF RECORD ON ROLL 351, IMAGE 47, IN THE REGISTER’S OFFICE OF WASHINGTON COUNTY, TENNESSEE, (HEREINAFTER: “ROWC”), THENCE WITH THE SOUTHWESTERLY LINE OF SAID NORTH ROAN STREET, SOUTH 2347'19" EAST, A DISTANCE OF 555.51 FEET TO AN "X" MARK IN A CONCRETE SIDEWALK AT THE NORTHEAST CORNER OF THE PROPERTY OF FIRST TENNESSEE BANK AS OF RECORD IN DEED BOOK 478, PAGE 188, ROWC; THENCE WITH THE FIRST TENNESSEE BANK PROPERTY, SOUTH 8238'55" WEST, A DISTANCE OF 281.48 FEET TO A PK NAIL AT THE NORTHWEST CORNER OF SAID FIRST TENNESSEE BANK; THENCE WITH THE WESTERN LINE OF SAID BANK PROPERTY AND CONTINUING ALONG THE WESTERN TERMINUS OF MALL STREET (PUBLIC), SOUTH 2346'25" EAST, A DISTANCE OF 344.27 FEET TO A PK NAIL; THENCE WITH THE SOUTHERN LINE OF MALL STREET THE FOLLOWING TWO COURSES: (1) NORTHEASTERLY WITH A CURVE TO THE RIGHT HAVING A RADIUS OF 25 FEET, AN ARC LENGTH OF 39.27 FEET, AND BEING SUBTENDED BY A CHORD WHICH BEARS NORTH 2113'35" EAST, A DISTANCE OF 35.35 FEET TO AN IRON PIN; (2) NORTH 66 15'03" EAST, A DISTANCE OF 15.37 FEET TO AN IRON PIN IN THE NORTHERN LINE OF PROPERTY OF GENERAL MILLS RESTAURANT GROUP INC. AS OF RECORD IN DEED BOOK 559, PAGE 636, ROWC; THENCE ALONG THE WESTERN LINES OF SAID GENERAL MILLS PROPERTY THE FOLLOWING FOUR COURSES: (1) SOUTHWESTERLY ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 24.95 FEET; AN ARC LENGTH OF 42.94 FEET, AND BEING SUBTENDED BY A CHORD WHICH BEARS SOUTH 1654'23" WEST, A DISTANCE OF 37.83 FEET TO AN IRON PIN (2) THENCE SOUTH 3223'24" EAST A DISTANCE OF 62.29 FEET TO AN IRON PIN, (3) THENCE SOUTH 2345'24" EAST, A DISTANCE OF 265.07 FEET TO AN IRON PIN, (4) THENCE WITH A CURVE TO THE LEFT, HAVING A RADIUS OF 39.93 FEET, AN ARC LENGTH OF 62.72 FEET, AND BEING SUBTENDED BY A CHORD WHICH BEARS SOUTH 6858'03" EAST, A DISTANCE OF 56.47 FEET TO AN IRON PIN IN THE NORTHERN LINE OF MOCKINGBIRD LANE (60' R.O.W., PUBLIC); THENCE WITH THE NORTHERLY LINE OF SAID MOCKINGBIRD LANE THE FOLLOWING TWO COURSES: (1) SOUTH 6613'36" WEST, A DISTANCE OF 31.40 FEET TO A PK NAIL; (2) THENCE SOUTH 4551'39" WEST, A DISTANCE OF 1,035.06 FEET TO AN IRON PIN IN THE NORTHEASTERLY LINE OF PROPERTY OF GLIMCHER DEVELOPMENT CORPORATION AS OF RECORD IN ROLL 524, IMAGE 1403, ROWC; THENCE WITH SAID GLIMCHER NORTHEASTERLY LINE, NORTH 4407'30" WEST, A DISTANCE OF 769.77 FEET TO AN IRON PIN AT THE NORTHEAST CORNER OF SAID GLIMCHER AND BEING IN THE SOUTHERLY LINE OF PROPERTY OF JIMMY R. LEWIS AS OF RECORD ON ROLL 194, IMAGE 1076, ROWC; THENCE WITH THE SOUTHERLY, EASTERLY AND NORTHERLY LINES OF SAID LEWIS THE FOLLOWING FOUR COURSES: (1) NORTH 4550'08" EAST, A DISTANCE OF 68.02 FEET TO AN IRON PIN; (2) THENCE NORTH 4122' 12" WEST, A DISTANCE OF 137.24 FEET TO A PK NAIL IN ASPHALT PAVEMENT; (3) THENCE SOUTH 8049'05" WEST, A DISTANCE OF 262.27 FEET TO AN IRON PIN; (4) THENCE SOUTH 4554'45" WEST, A DISTANCE OF 45.78 FEET TO AN IRON PIN IN THE NORTHEASTERLY LINE OF PROPERTY OF THE GUMCHER DEVELOPMENT CORPORATION, L.P. AS OF RECORD ON ROLL 522, IMAGE 1392, ROWC; THENCE NORTH 4430'20" WEST, A DISTANCE OF 120.63 FEET TO AN IRON PIN AT THE NORTHEAST CORNER OF SAID GLIMCHER AND AT THE SOUTHEAST CORNER OF PROPERTY OF WALTER E. SAYLOR AS OF RECORD ON

 

  

93

  

 

ROLL 68, IMAGE 1106, ROWC; THENCE NORTH 4401'33" WEST, A DISTANCE OF 216.66 FEET TO AN IRON PIN FOUND AT THE SOUTHWEST CORNER OF PROPERTY OF THOMAS H. ROWAN AS OF RECORD IN DEED BOOK 334, PAGE 351, ROWC; THENCE WITH THE SOUTHERLY LINES OF BRALLEY ADDITION (NOT RECORDED) AND SAID ROWAN AND THE SOUTHERLY TERMINUS OF IVY LANE, AND THE SOUTHERLY LINE OF CAROLANN M. ROHRSSEN PROPERTY AS OF RECORD IN DEED BOOK 578, PAGE 629, ROWC; NORTH 3543'23" EAST, A DISTANCE OF 399.06 FEET TO A PLANTED STONE AT THE SOUTHEAST CORNER OF SAID ROHRSSEN; THENCE WITH THE EASTERLY LINE OF ROHRSSEN, THE EASTERLY LINE OF PROPERTY OF SUSAN M. KANE AS OF RECORD ON ROLL 248, IMAGE 2330, ROWC AND THE EASTERLY LINE OF PROPERTY OF MICHAEL P. BASHOR, AS OF RECORD IN DEED BOOK 546, PAGE 2133, ROWC, NORTH 3316'09" WEST, A DISTANCE OF 372.29 FEET TO AN IRON PIN AT THE NORTHEAST CORNER OF SAID BASHOR AND IN THE SOUTHERLY LINE OF SUNSET DRIVE; THENCE WITH THE SOUTHERLY LINE OF SUNSET DRIVE THE FOLLOWING THREE COURSES: (1) NORTH 3805'40" EAST, A DISTANCE OF 295.42 FEET TO AN IRON PIN; (2) THENCE NORTH 35 13'57" EAST, A DISTANCE OF 255.28 FEET TO AN IRON PIN; (3) THENCE WITH A CURVE TO THE RIGHT, HAVING A RADIUS OF 35.01 FEET, AN ARC LENGTH OF 51.92 FEET. AND BEING SUBTENDED BY A CHORD WHICH BEARS NORTH 7744'22" EAST, A DISTANCE OF 47.29 FEET TO AN IRON PIN AT THE INTERSECTION OF SUNSET DRIVE AND THE SOUTHWESTERLY LINE OF MOUNTCASTLE DRIVE (80' PUBLIC R.O.W.); THENCE WITH THE SOUTHWESTERLY LINE OF MOUNTCASTLE DRIVE THE FOLLOWING TWO COURSES: (1) SOUTH 5946'35" EAST, A DISTANCE OF 130.78 FEET TO AN IRON PIN; (2) THENCE WITH A CURVE TO THE LEFT HAVING A RADIUS OF 613.15 FEET, AN ARC LENGTH OF 198.82 FEET, AND BEING SUBTENDED BY A CHORD WHICH BEARS SOUTH 6903'57" EAST, A DISTANCE OF 197.95 FEET TO AN IRON PIN AT THE NORTHERLY CORNER OF PROPERTY OF IMMOBILIA PROPERTIES AS OF RECORD ON ROLL 613, IMAGE 762, ROWC; THENCE WITH THE NORTHERLY, WESTERLY AND SOUTHERLY LINES OF SAID IMMOBILIA PROPERTIES THE FOLLOWING FOUR COURSES: (1 ) SOUTH 3126'48" WEST, A DISTANCE OF 55.48 FEET TO AN IRON PIN; (2) THENCE SOUTH 2507'52" WEST, A DISTANCE OF 65.12 FEET TO AN IRON PIN; (3) THENCE SOUTH 1403'46" WEST, A DISTANCE OF 38.24 FEET TO AN IRON PIN; (4) THENCE NORTH 6603'15" EAST, A DISTANCE OF 364.72 FEET TO A PK NAIL IN THE SOUTHERLY LINE OF THE AFORESAID MOUNTCASTLE DRIVE; THENCE WITH THE SOUTHERLY LINE OF MOUNTCASTLE DRIVE ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 612.90 FEET, AN ARC LENGTH OF 110.86 FEET AND BEING SUBTENDED BY A CHORD WHICH BEARS NORTH 71'05'51" EAST, A DISTANCE OF 110.71 FEET TO A CONCRETE MONUMENT; THENCE NORTH 6603'35" EAST, A DISTANCE OF 108.07 FEET TO AN IRON PIN AT THE NORTHWEST CORNER OF PROPERTY OF BANK OF AMERICA, AS OF RECORD IN ROLL 1, IMAGE 1779; THENCE WITH THE WESTERLY AND SOUTHERLY LINES OF SAID BANK OF AMERICA THE FOLLOWING TWO COURSES: (1) SOUTH 2633'24" EAST, A DISTANCE OF 165.97 FEET TO AN IRON PIN;

 

  

94

  

 

(2) THENCE NORTH 6609'12" EAST, A DISTANCE OF 367.74 FEET TO THE POINT OF BEGINNING AND CONTAINING 2,274,197 SQUARE FEET OR 52.208 ACRES, MORE OR LESS.

 

(Note: Any reference to acreage or square footage is for informational purposes only)

TOGETHER WITH THE EASEMENTS IN THAT CERTA1N RECIPROCAL EASEMENT AGREEMENT DATED OCTOBER, 1982, RECORDED IN MISCELLANEOUS BOOK 107, PAGE 174, IN THE REGISTER'S OFFICE OF WASHINGTON COUNTY, TENNESSEE AS AMENDED BY AMENDMENT: DATED OCTOBER 1 982, RECORDED IN MISCELLANEOUS BOOK 108, PAGE 632 IN SAID REGISTER'S OFFICE.

TOGETHER WITH THE EASEMENTS IN THAT CERTAIN AGREEMENT: DATED AS OF SEPTEMBER 16, 1970, RECORDED IN MISCELLANEOUS BOOK 58, PAGE 62, IN THE REGISTER'S OFFICE OF WASHINGTON COUNTY, TENNESSEE.

TOGETHER WITH THE EASEMENTS IN THAT CERTAIN CROSS EASEMENT AGREEMENT: DATED JUNE 24, 1991, RECORDED IN MISCELLANEOUS BOOK 174, PAGE 259, IN THE REGISTER'S OFFICE OF WASHINGTON COUNTY TENNESSEE.

AND BEING THE SAME PROPERLY CONVEYED BY SPECIAL WARRANTY DEED TO JOHNSON CITY VENTURE, LLC, DATED NOVEMBER 15, 1996, RECORDED IN ROLL 102, IMAGE 1065, IN THE REGISTER'S OFFICE OF WASHINGTON COUNTY, TENNESSEE.

 

The above description being also described as the following legal description prepared by Gregory W. Maxwell, a Professional Land Surveyor of Civil & Environmental Consultant’s Inc.

 

  

95

  

Schedule B

 

Exception Report

 

 

Under Section 2.037 of the Forever 21 Retail, Inc., Lease dated December 23, 2008, the Tenant has the right to lease the additional adjoining Phase II space (2,037 sq.ft.), when such space becomes available.

All Security Deposits held by Borrower are listed on the three attached Security Deposit Schedules.

Tenants that are delinquent on the payment of rents are listed on the attached Aged Delinquencies Report.

 

  

96

  

Schedule C

 

[Intentionally Omitted]

 

  

97

  

Schedule D

 

Unfunded Obligations

 

	
1.  

	
J.C. Penney Corporation, Inc., lease dated June 6, 1978.  Tenant is owed a Tenant Allowance of $500,000 that is due to be paid in 2012 in accordance with the terms of the Lease.

	
2.  

	
LA Nails of Johnson City, lease dated April 27, 2009.  Tenant will be due a Tenant Allowance, in the amount of $106,236.90, upon the submission of the appropriate documentation to Landlord in accordance with the terms of the Lease.

	
3.  

	
Pacific Sunwear Stores Corp., lease dated March 27, 2009.  Tenant will be due a Tenant Allowance, in the amount of $170,000, upon the submission of the appropriate documentation to Landlord in accordance with the terms of the Lease.

SOLELY TO THE EXTENT THAT THE PHASE 2 PREMISES ARE DELIVERED TO THE FOREVER 21 RETAIL, INC. TENANT, AND BORROWER HAS MADE THE REQUIRED DEPOSIT INTO THE UNFUNDED OBLIGATIONS ACCOUNT WITH RESPECT THERETO:

 

	
4.  

	
Forever 21 Retail, Inc., lease dated December 23, 2008.  Tenant will be due a Tenant Allowance of $132,405.00 after delivery of the additional Phase II space (2,037 sq.ft.) and completion of Tenant’s work in accordance with the terms of the Lease.

 

  

98

  

Schedule E

 

Rent Roll

 

  

99

  

Schedule F

 

Material Agreements

 

The following Agreements are with affiliated Companies:

	
1.  

	
Management Agreement being entered into by and among Borrower as Owner and Glimcher Properties Limited Partnership as Manager and Glimcher Development Corporation as Services Provider.

	
2.  

	
Security Contractor Service Agreement being entered into by and between Borrower as Owner and Ohio Retail Security, LLC for security services at the Property.

	
3.  

	
Housekeeping Contractor Service Agreement being entered into by and between Borrower as Owner and Mainstreet Maintenance, LLC for housekeeping services at the Property.

 

  

100

  

FIRST AMENDMENT TO LOAN AGREEMENT

This First Amendment to Loan Agreement (this “Amendment”), dated as of May 5, 2010, by and between GOLDMAN SACHS MORTGAGE COMPANY, a New York limited partnership (together with its successors and assigns, “Lender”), as successor-in-interest to Goldman Sachs Commercial Mortgage Capital, L.P., and GLIMCHER MJC, LLC, a Delaware limited liability company (“Borrower”), amends that certain Loan Agreement, dated as of April 8, 2010 (the “Loan Agreement”; all capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement).

 

WHEREAS, Lender and Borrower desire to amend the Loan Agreement with respect to the matters set forth herein.

 

NOW THEREFORE, in consideration of the mutual premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby represent, warrant, covenant and agree as follows:

 

Section 1.             Amendments of Loan Agreement.  Lender and Borrower hereby agree to amend the terms of the Loan Agreement as hereinafter set forth:

 

(a)           The defined term “Payment Date” is hereby deleted in its entirety and replaced with the following lieu thereof:

 

““Payment Date” means, with respect to each Interest Accrual Period, the sixth day of the calendar month in which such Interest Accrual Period ends (or, if such day is not a Business Day, the first preceding Business Day); provided, that prior to a Securitization, Lender shall have the right to change the Payment Date so long as a corresponding change to the Interest Accrual Period is also made.”

 

Section 2.             Miscellaneous.

 

(a)         All of the terms and conditions of the Loan Agreement are incorporated herein by reference with the same force and effect as if fully set forth herein.  Except as expressly amended hereby, the Loan Agreement and each of the other Loan Documents remains in full force and effect in accordance with its terms.

 

(b)         This Amendment shall be governed by and construed and interpreted in accordance with the laws of the State of Tennessee without regard to principles of conflicts of law.

 

(c)         Borrower hereby (1) unconditionally ratifies and confirms, renews and reaffirms all of its obligations under the Loan Agreement and each of the other Loan Documents, (2) acknowledges and agrees that such obligations remain in full force and effect, binding on and enforceable against it in accordance with the terms, covenants and conditions of the Loan Agreement as amended hereby and the other Loan Documents, in each case, without impairment, and (3) represents, warrants and covenants that it is not in default under the Loan Agreement or any of the other Loan Documents beyond any applicable notice and cure periods, and there are no defenses, offsets or counterclaims against the Indebtedness.

 

  

101

  

 

(d)         Sponsor hereby (1) unconditionally approves and consents to the execution by Borrower of this Amendment and the modifications to the Loan Documents effected thereby, (2) unconditionally ratifies, confirms, renews and reaffirms all of its obligations under the Guaranty, the Environmental Indemnity and the Cooperation Agreement (the “Sponsor Documents”), (3) acknowledges and agrees that its obligations under the Sponsor Documents remain in full force and effect, binding on and enforceable against it in accordance with the terms, covenants and conditions of such documents without impairment, and (4) represents, warrants and covenants that it is not in default under any Sponsor Document beyond any applicable notice and cure periods, and there are no defenses, offsets or counterclaims against its obligations under the Sponsor Documents.

 

(e)         Borrower acknowledges and agrees that no oral communication or course of dealing from or on behalf of Lender shall constitute any waiver, agreement, commitment, or evidence of any assurance or intention of Lender with respect to the Loan, the Loan Agreement and/or the other Loan Documents, and that any waiver, agreement, commitment, assurance, or intention of Lender with respect to the Loan, the Loan Agreement and/or the other Loan Documents shall be effective only if in writing and duly executed by Lender.  Borrower acknowledges and agrees that no Default or Event of Default shall be waived by Lender, unless such waiver is in writing and duly executed by Lender.

 

(f)          This Amendment may be executed by facsimile signatures and in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.

 

 

[Signatures appear on following page]

 

  

102

  

 

IN WITNESS WHEREOF, for good and valuable consideration, the sufficiency of which is hereby acknowledged and agreed, the parties hereto have executed and delivered this Amendment as of the date first hereinabove set forth.

 

	

LENDER:

 

GOLDMAN SACHS MORTGAGE

COMPANY

	  	  	

BORROWER:

 

GLIMCHER MJC, LLC,

a Delaware limited liability company

	  
	  	  	  	  	  
	

By: Goldman Sachs Real Estate Funding Corp.,

       its general partner

	  	  	

By: Johnson City Venture, LLC,

       Delaware limited liability company,

       its sole member

	  
	  	  	  	  	  
	
       By: ______________________________

              Name:

              Title:

	  	  	

       By: Glimcher Johnson City, Inc.,

              a Delaware corporation,

              its Managing Member

	  
	  	  	  	  	  
	  	  	  	
              By: /s/ Mark E. Yale

	  
	  	  	  	

              Name: Mark E. Yale

              Title:   Executive Vice President, Chief

                          Financial Officer and Treasurer

	  
	
 

	  	  	  	  
	 	 	 	

Solely with respect to Section 2(d) hereof:

 

SPONSOR:

	 
	 	 	 	 	 
	 	 	 	

GLIMCHER PROPERTIES LIMITED

PARTNERSHIP, a Delaware limited

partnership

 

	 
	 	 	 	

By: Glimcher Properties Corporation, a

       Delaware corporation and its sole

       general partner

	 
	 	 	 	 	 
	 	 	 	

       By: :    /s/ Mark E. Yale

       Name: Mark E. Yale

       Title:   Executive Vice President, Chief

                   Financial Officer and Treasurer

	 

 

 

103

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]