Document:

Exhibit

Exhibit 10.5

HAEMONETICS CORPORATION

2005 LONG-TERM INCENTIVE COMPENSATION PLAN

RESTRICTED STOCK UNIT AGREEMENT

WITH

<<Participant Name>>

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HAEMONETICS CORPORATION
RESTRICTED STOCK UNIT AGREEMENT
UNDER 2005 LONG-TERM INCENTIVE COMPENSATION PLAN

THIS RESTRICTED STOCK UNIT AGREEMENT (“Agreement”), dated as of <<Grant Date>> (“Grant Date”) by and between Haemonetics Corporation, a Massachusetts Corporation (“Company”), and <<Participant Name>> (“Director”), is entered into as follows:

WHEREAS, the Company has established the Haemonetics Corporation 2005 Incentive Compensation Plan (“Plan”), a copy of which has been provided to Director, and which Plan is made a part hereof; and

WHEREAS, the Compensation Committee of the Board of Directors of the Company (“Committee”) has determined that the Director be granted restricted stock units in respect of the Company's common stock, $0.01 par value per share (“Common Stock”), subject to the restrictions as hereinafter set forth;

NOW, THEREFORE, the parties hereby agree as follows:

1.     Grant of Restricted Stock Units.

Subject to the terms and conditions of this Agreement and of the Plan, the Company hereby grants to the Director <<Number of Awards Granted>> Restricted Stock Units (“RSUs”).

2.     Vesting Schedule.

(a) Vesting Dates. The interest of the Director in the RSUs shall vest as to 100% of such RSUs on the first anniversary of the Grant Date, conditioned upon the Director’s continued service with the Company as a director as of such vesting date.  In situations where there is not continued service, notwithstanding the foregoing, the interest of the Director in the RSUs shall vest as specified below.

(b) Partial Year. If the Director ceases to be a director of the Company prior to the first anniversary of the Grant Date for any reason other than a Change in Control, death or Disability, the RSUs granted hereunder shall vest on a pro-rata basis such that one twelfth (1/12) of the total number of RSUs granted hereunder shall vest on the last day of every month that the Director is a director between the Grant Date and the date when the Director ceases to be a Director of the Company.  

(c) Death or Disability.  The RSUs shall become fully vested on a termination of service due to death or “Disability” (as defined in the Plan).

(d) Change in Control.  The RSUs shall become fully vested immediately prior to the effectiveness of a Change in Control.

(e) “Change in Control” means the earliest to occur of the following events: 

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(A) a person, or any two or more persons acting as a group, and all affiliates of such person or persons, who prior to such time owned less than fifty  percent (50%) of the Company’s then outstanding shares of Common Stock, shall acquire such additional shares of Common Stock in one or more transactions, or series of transactions, such that following such transaction or transactions such person or group and affiliates beneficially own fifty percent (50%) or more of the Common Stock outstanding,
(B) closing of the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, 
(C) individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Company’s Board of Directors (for this purpose, “Incumbent Board” means at any time those persons who are then members of the Company’s Board of Directors and who are either (i) members of the Company’s Board of Directors on the date of this Agreement, or (ii) have been elected, or have been nominated for election by the Company’s shareholders, by the affirmative vote of at least two-thirds of the directors comprising the Incumbent Board at the time of such election or nomination (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director without objection to such nomination), and
(D) the consummation of any merger, reorganization, consolidation or share exchange unless the persons who were the beneficial owners of the Company’s outstanding shares of Common Stock immediately before the consummation of such transaction beneficially own more than 50% of the outstanding shares of the common stock of the successor or survivor entity in such transaction immediately following the consummation of such transaction.  For purposes of this definition, the percentage of the beneficially owned shares of the successor or survivor entity described above shall be determined exclusively by reference to the shares of the successor or survivor entity which result from the beneficial ownership of Common Stock by the persons described above immediately before the consummation of such transaction.
Notwithstanding the foregoing, none of the above events or conditions shall constitute a Change in Control for purposes of this Agreement unless the event or condition also constitutes a “Change in Control Event” for purposes of Treas. Reg. §1. 409A-3(i)(5).  

3.    Restrictions.

(a)  No Transfer. The RSUs granted hereunder may not be sold, transferred, pledged, assigned, encumbered, or otherwise alienated or hypothecated.

(b)  Forfeiture. Except as provided for in Section 2, if the Director’s service with the Company terminates for any reason, the balance of the RSUs subject to the provisions of this Agreement which have not vested at the time of the Director’s termination of service shall be forfeited by the Director, and the Director shall have no future rights with respect to any such unvested RSUs.   

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4.    Delivery of Shares.

The means of settlement of vested RSUs is that the Company shall deliver to the Director a certificate or certificates or, at the election of the Company, make an appropriate book entry. RSUs that become vested under Section 2 above shall be settled as soon as practicable after the first anniversary of the Grant Date in shares of Common Stock equal to the number of vested RSUs as of such date.  A Director shall have no further rights with regard to RSUs once the underlying Common Stock has been so delivered.

5.    Director Shareholder Rights.

Neither the Director nor any person claiming through the Director, will have any of the rights or privileges of a shareholder of Haemonetics with respect to the RSUs unless and until Common Stock has been issued, recorded on the records of the Company or its transfer agent, and delivered to the Director upon vesting of the RSUs.  No dividend equivalents shall be paid on RSUs with respect to any cash dividends declared during a period of RSU vesting.

6.    Adjustments or Changes in Capitalization.

Adjustments as a result of changes in corporate capitalization and the like or as a result of a corporate transaction shall be made in accordance with Article 4 of the Plan.

7.    Death or Disability of Director.

Any Common Stock deliverable to the Director pursuant to Section 4 shall be delivered to the Director if legally competent or to a legally designated guardian or representative if the Director is legally incompetent.  If the Director is not then living, the Common Stock shall be delivered to the representative of the Director’s estate.

8.    Taxes.

The Director acknowledges and agrees that any income or other taxes due from the Director with respect to the RSUs issued pursuant to this Agreement shall be the Director’s sole responsibility.  By accepting this RSU grant, the Director agrees and acknowledges that the benefits under this Agreement shall be subject to any applicable withholding obligation to the Company as provided in Article 17 of the Plan.

9.     Section 409A.  

Notwithstanding Section 9.5 of the Plan, it is intended that the rights to receive shares of Common Stock granted under this Agreement and the provisions of this Agreement shall comply with Section 409A of the Code, and all provisions of this Agreement shall be construed and interpreted in a manner consistent with Section 19.10 of the Plan and the requirements for avoiding taxes or penalties under Section 409A of the Code.  Delivery of shares under this Agreement may be accelerated by the Board in its discretion only as permitted under Section 409A of the Code.  Notwithstanding the foregoing, in no event whatsoever shall the Company or its Subsidiaries be liable for any additional tax, interest, or penalties that may be imposed on the Director as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

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10.    Data Privacy Consent.
As a condition of this Agreement, you consent to the collection, use and transfer of your personal data as described in this paragraph. You understand that the Company and its subsidiaries hold certain personal information about you, including your name, home address and telephone number, date of birth, social insurance (or security) number or identification number, salary, nationality, job title, any shares of Common Stock or directorships held in the Company (or any of its subsidiaries), details of all options or any other entitlement to shares of Common Stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, managing and administering the Plan (“Data”).  You further understand that the Company and/or a subsidiary may transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of your participation in the Plan, and that the Company and/or a subsidiary may each further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan. You understand that these recipients may be located in the European Economic Area, or elsewhere, such as the United States or Canada, and that the recipient’s country may have different data privacy laws and protections than your country.  You authorize them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data to a broker or other third party with whom you may elect to deposit any shares of Common Stock acquired pursuant to the Plan as may be required for the administration of the Plan and/or the subsequent holding of shares of Common Stock on your behalf.  You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan.  You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to it or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Company’s Human Resources representative.  Refusal or withdrawal of consent may, however, affect your ability to exercise or realize benefits from this Agreement or the Plan.  For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact the Company’s Human Resources representative.
11.    Miscellaneous.

(a)  Enforcement. The Company shall not be required (i) to transfer on its books any shares of Common Stock of the Company which shall have been sold or transferred in violation of any of the provisions set forth in this Agreement, or (ii) to treat as owner of such shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such shares shall have been so transferred.

(b)  Further Acts. The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this Agreement.

(c)  Notice. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to the Director at her/his address then on file with the Company.

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(d)  No Guarantee of Service. Neither the Plan nor this Agreement nor any provisions under either shall be construed so as to grant the Director any right to remain a director of the Company.

(e)Entire Agreement. This Agreement and the Plan constitute the entire agreement of the parties with respect to the subject matter hereof.  The Agreement is subject to and shall be construed in accordance with the terms of the Plan, and words or phrases defined in the Plan shall have the same meaning for purposes of this Agreement unless the context clearly requires otherwise.

(f)    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts and applicable federal law, without regard to applicable conflicts of laws.

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and its corporate seal to be hereto affixed by its officer thereunto duly authorized, and the Director has accepted this agreement, all as of the day and year first above written.

HAEMONETICS CORPORATION

______________________________
By:
Its:

RETAIN A COPY OF THIS AGREEMENT FOR YOUR RECORDS

7secondamendedandrestated

                                                               EXHIBIT 10.1           SECOND AMENDED AND RESTATED CREDIT AGREEMENT                           dated as of August 7, 2018                                   among                         PHYSICIANS REALTY L.P.,                               as Borrower,                        PHYSICIANS REALTY TRUST,                               as Guarantor                       THE LENDERS PARTY HERETO,                    KEYBANK NATIONAL ASSOCIATION,                           as Administrative Agent             _____________________________________________________   KEYBANC CAPITAL MARKETS, INC., BMO CAPITAL MARKETS, and CITIZENS                               BANK, N.A.                     as Lead Arrangers and Co-Book Runners             BMO CAPITAL MARKETS AND CITIZENS BANK, N.A.,                           as Co-Syndication Agents 

 

                              TABLE OF CONTENTS                                                                            Page   Section 1  DEFINITIONS AND INTERPRETATION .................................................................... 1       Section 1.1 Definitions. ........................................................................................................ 1       Section 1.2 Accounting Terms............................................................................................ 38       Section 1.3 Rules of Interpretation...................................................................................... 38 Section 2   LOANS AND LETTERS OF CREDIT ......................................................................... 40       Section 2.1 Revolving Loans and the Term Loan. ............................................................... 40       Section 2.2 Swingline Loans. ............................................................................................. 41       Section 2.3 Issuances of Letters of Credit and Purchase of Participations Therein. .............. 43       Section 2.4 Pro Rata Shares; Availability of Funds. ............................................................ 46       Section 2.5 Evidence of Debt; Register; Lenders’ Books and Records; Notes. .................... 48       Section 2.6 Scheduled Principal Payments. ......................................................................... 48       Section 2.7 Interest on Loans.............................................................................................. 48       Section 2.8 Conversion/Continuation. ................................................................................ 50       Section 2.9 Default Rate of Interest. ................................................................................... 51       Section 2.10 Fees. ................................................................................................................ 51       Section 2.11 Prepayments/Commitment Reductions. ............................................................ 53       Section 2.12 Application of Prepayments. ............................................................................ 54       Section 2.13 General Provisions Regarding Payments. ......................................................... 55       Section 2.14 Sharing of Payments by Lenders. ..................................................................... 56       Section 2.15 Cash Collateral. ............................................................................................... 57       Section 2.16 Defaulting Lenders........................................................................................... 57       Section 2.17 Removal or Replacement of Lenders. ............................................................... 60       Section 2.18 Extension of Revolving Maturity Date. ............................................................ 61       Section 2.19 Increase in Commitments. ................................................................................ 62 Section 3   YIELD PROTECTION ................................................................................................ 64       Section 3.1 Making or Maintaining LIBOR Loans. ............................................................. 64       Section 3.2 Increased Costs. ............................................................................................... 66       Section 3.3 Taxes. .............................................................................................................. 67       Section 3.4 Mitigation Obligations; Designation of a Different Lending Office. .................. 71 Section 4   GUARANTY ............................................................................................................... 72       Section 4.1 The Guaranty. .................................................................................................. 72       Section 4.2 Obligations Unconditional. .............................................................................. 73       Section 4.3 Reinstatement. ................................................................................................. 74       Section 4.4 Certain Additional Waivers. ............................................................................. 74       Section 4.5 Remedies. ........................................................................................................ 74       Section 4.6 Rights of Contribution...................................................................................... 74       Section 4.7 Guarantee of Payment; Continuing Guarantee. ................................................. 74       Section 4.8 Keepwell. ........................................................................................................ 75 Section 5   CONDITIONS PRECEDENT ...................................................................................... 75       Section 5.1 Conditions Precedent to Effective Date. ........................................................... 75       Section 5.2 Conditions to Term Loan and Each Credit Extension. ....................................... 77 Section 6   REPRESENTATIONS AND WARRANTIES .............................................................. 78       Section 6.1 Organization; Requisite Power and Authority; Qualification............................. 78                                         i 

 

      Section 6.2 Capital Stock and Ownership. .......................................................................... 78       Section 6.3 Due Authorization............................................................................................ 79       Section 6.4 No Conflict. ..................................................................................................... 79       Section 6.5 Governmental Consents. .................................................................................. 79       Section 6.6 Binding Obligation. ......................................................................................... 79       Section 6.7 Financial Statements. ....................................................................................... 79       Section 6.8 No Material Adverse Effect; No Default. ......................................................... 80       Section 6.9 Tax Matters...................................................................................................... 80       Section 6.10 Properties. ........................................................................................................ 80       Section 6.11 Environmental Matters. .................................................................................... 81       Section 6.12 No Defaults...................................................................................................... 81       Section 6.13 No Litigation or other Adverse Proceedings. .................................................... 81       Section 6.14 Information Regarding the Borrower and its Subsidiaries. ................................ 81       Section 6.15 Governmental Regulation................................................................................. 82       Section 6.16 Employee Matters. ........................................................................................... 83       Section 6.17 Pension Plans. .................................................................................................. 83       Section 6.18 Solvency. ......................................................................................................... 83       Section 6.19 Compliance with Laws. .................................................................................... 83       Section 6.20 Disclosure. ....................................................................................................... 84       Section 6.21 Insurance; No Casualty or Condemnation. ........................................................ 84       Section 6.22 Healthcare Facility Representations and Warranties. ........................................ 84       Section 6.23 REIT Status. .................................................................................................... 85       Section 6.24 Unencumbered Pool Properties. ....................................................................... 85 Section 7   AFFIRMATIVE COVENANTS ................................................................................... 86       Section 7.1 Financial Statements and Other Reports. .......................................................... 86       Section 7.2 Existence. ........................................................................................................ 89       Section 7.3 Payment of Taxes and Claims. ......................................................................... 89       Section 7.4 Maintenance of Properties. ............................................................................... 89       Section 7.5 Insurance. ........................................................................................................ 89       Section 7.6 Inspections. ...................................................................................................... 90       Section 7.7 Lenders Meetings. ............................................................................................ 90       Section 7.8 Compliance with Laws and Material Contracts. ................................................ 90       Section 7.9 Use of Proceeds. .............................................................................................. 90       Section 7.10 Environmental Matters. .................................................................................... 90       Section 7.11 Books and Records. ......................................................................................... 91       Section 7.12 Additional Subsidiaries. ................................................................................... 91       Section 7.13 Unencumbered Pool Properties Subject to Eligible Ground Leases. .................. 92       Section 7.14 RESERVED. ................................................................................................... 95       Section 7.15 REIT Status. .................................................................................................... 95       Section 7.16 Leasing Matters Regarding Unencumbered Pool Properties. ............................. 95 Section 8   NEGATIVE COVENANTS ......................................................................................... 96       Section 8.1 Indebtedness. ................................................................................................... 96       Section 8.2 Liens. ............................................................................................................... 97       Section 8.3 No Further Negative Pledges. ........................................................................... 99       Section 8.4 Restricted Payments. ........................................................................................ 99       Section 8.5 Burdensome Agreements. ................................................................................ 99       Section 8.6 Investments. ................................................................................................... 100       Section 8.7 Use of Proceeds. ............................................................................................ 101       Section 8.8 Financial Covenants. ...................................................................................... 101                                         ii 

 

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

 

Section 11.22 Existing Agreement. ...................................................................................... 128                                    iv 

 

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

 

              SECOND AMENDED AND RESTATED CREDIT AGREEMENT         This SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of August 7, 2018 (as amended, restated, increased, extended, supplemented or otherwise modified from time to time, this  “Agreement”),  is  entered  into  by  and  among  PHYSICIANS  REALTY  L.P.,  a  Delaware  limited  partnership (the “Borrower”), PHYSICIANS REALTY TRUST, a Maryland real estate investment trust  (the “Parent”), as Guarantor, the Lenders from time to time party hereto, and KEYBANK NATIONAL  ASSOCIATION, as administrative agent (in such capacity, “Administrative Agent”).                                     RECITALS:         WHEREAS,  certain  lenders  have  made  available  to  the  Borrower  a  revolving  credit  facility pursuant to the terms of that certain Amended and Restated Credit Agreement dated as of June 10, 2016 (as amended and in effect on the date hereof, the “Existing Agreement”); and         WHEREAS,  the  Borrower  has  requested,  and  the  Administrative  Agent  and  the  Lenders  have agreed, to amend and restate, in full, the Existing Agreement and provide a term loan facility in accordance with the terms and conditions contained herein.         NOW, THEREFORE, in consideration of these premises and the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree that the Existing Agreement is hereby amended and restated to read as follows:                   Section 1   DEFINITIONS AND INTERPRETATION         Section 1.1 Definitions.   The  following  terms  used  herein,  including  in  the  introductory  paragraph, recitals, exhibits and schedules hereto, shall have the following meanings:         “Acquisition”, by any Person, means the acquisition by such Person, in a single transaction or in a  series of related transactions, of all or any substantial portion of the assets of another Person or at least a  majority  of  the  Capital  Stock  of  another  Person,  in  each  case  whether  or  not  involving  a  merger  or  consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness,  securities or otherwise.         “Adjusted EBITDA” means, for any period, the sum of (a) EBITDA of the Consolidated Parties  for the immediately preceding calendar quarter plus (b) non-recurring charges not otherwise added back in  the  calculation  of  EBITDA  of  the  Consolidated  Parties  for  the  purposes  hereof  under  the  definition  of  “EBITDA”, including acquisition expenses less (c) the Capital Reserves for such period.         “Adjusted LIBOR Rate” means, for any Interest Rate Determination Date with respect to an Interest  Period for an Adjusted LIBOR Rate Loan, the rate per annum obtained by dividing (i) (a) the rate per annum  (rounded upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to  the rate determined by the Administrative Agent to be the offered rate which appears on the Reuters Screen  LIBOR01 Page  or any successor thereto approved by the Administrative  Agent  if such page  no longer  reports such rate, for deposits (for delivery on the first day of such period) with a term equivalent to such  period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such Interest Rate  Determination Date, or (b) in the event the rate referenced in the preceding clause (a) does not appear on  such page or service or if such page or service shall cease to be available, the rate per annum (rounded  upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to the rate  determined by the Administrative Agent to be the offered rate on such other page or other service which  displays an average rate for deposits (for delivery on the first day of such period) with a term equivalent to 

 

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

 

      “Applicable  Laws”  means,  as  to  any  Person,  all  laws,  including  all  applicable  provisions  of constitutions,  statutes,  rules,  ordinances, regulations and orders of all Governmental Authorities and all orders,  rulings,  writs  and  decrees  of  all  courts,  tribunals  and  arbitrators,  in  each  case,  applicable  to  or binding upon such Person or any of its property or to which such Person or any of its property is subject.        “Applicable Margin” means the percentage per annum determined, at any time, based on the range into which the Borrower’s Credit Rating then falls, in accordance with the levels in the table set forth below (the  “Investment  Grade  Pricing  Grid”).   During  any  period  for  which  the  Borrower  has  received  three Investment Grade Ratings which are not equivalent, such Applicable Margin will be determined by (a) the highest Investment Grade Rating if they differ by only one Level and (b) the average of the two highest Investment  Grade Ratings if they differ by two or  more Levels (unless the average is not  a recognized Level, in which case the Applicable Margin will be based on the Level corresponding to the second highest Investment Grade Rating).  During any period for which the Borrower has received only two Investment Grade  Ratings  and  such  Investment  Grade  Ratings  are  not  equivalent,  the  Applicable  Margin  will  be determined by (i) the highest Investment Grade Rating if they differ by only one Level and (ii) the median of  the  two  Investment  Grade  Ratings  if  they  differ  by  two  or  more  Levels  (unless  the  median  is  not  a recognized Level, in which case the Applicable Margin will be based on the Investment Grade Rating one Level below the Level corresponding to the higher Investment Grade Rating). All of the foregoing shall be determined solely but reasonably by Administrative Agent from time to time.  During any period for which the  Borrower  has  received  an  Investment  Grade  Rating  from  only  one  Rating  Agency,  the  Applicable Margin shall be determined based on such Investment Grade Rating so long as such Credit Rating is from either S&P or Moody’s.  If the Borrower ceases to maintain Investment Grade Rating from either S&P or Moody’s, then from and after such time the Applicable Margin shall be determined with reference to Level V below, with any increase or decrease in the Applicable Margin resulting from such change becoming effective on the date one (1) Business Day immediately following the date on which Borrower ceases to maintain such Investment Grade Rating.                             Investment Grade Pricing Grid  Pricing  Credit  Applicable Facility   Applicable   Applicable    Applicable   Level   Rating  Margin for Fee Rate  Margin for    Margin for    Margin for                   Revolving             Revolving    Term Loans   Term Loans                   Loans that          Loans that are that are Base  that are                    are Base             Adjusted     Rate Loans    Adjusted                   Rate Loans           LIBOR Rate                 LIBOR Rate                                         Loans and                   Loans                                       Letter of Credit                                           Fee    I     At Least   0.00%     0.125%     0.775%        0.00%        0.85%          A-or A3    II    At Least   0.00%     0.15%      0.825%        0.00%        0.90%          BBB+ or           BAA1    III   At Least   0.00%     0.20%      0.90%         0.00%        1.00%          BBB or           BAA2    IV    At Least   0.10%     0.25%      1.10%         0.25%        1.25%          BBB-or           BAA3    V      Below     0.45%     0.30%      1.45%         0.65%        1.65%          BBB-and           BAA3                                         3 

 

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

 

Administrative  Agent,  in  substantially  the  form  of  Exhibit  11.5  or  any  other  form  approved  by  the Administrative Agent.        “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Off-Balance Sheet Obligation, the capitalized amount of the  remaining  lease  or  similar  payments  under  the  relevant  lease  or  agreement  that  would  appear  on  a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or agreement were  accounted  for  as  a  Capital  Lease,  (c)  in  the  case  of  Securitization  Transactions,  the  outstanding principal  amount  of such  financing,  after  taking  into  account  reserve  amounts  and  making  appropriate adjustments, determined by the Administrative Agent in its reasonable judgment and (d) in the case of Sale and  Leaseback  Transactions,  the  present  value  (discounted  in  accordance  with  GAAP  at  the  debt  rate implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such lease.        “Authorized  Officer”  means,  as  applied  to  any  Person,  any  individual  holding  the  position  of chairman of the board (if an officer), chief executive officer, president or one of its vice presidents (or the equivalent thereof), chief financial officer, treasurer or assistant treasurer of such Person or its Controlling or parent entity and, solely for purposes of making the certifications required under Section 5.1(b)(ii) and (v), any secretary or assistant secretary.        “Available Commitment” shall mean, as to any Lender at any time, an amount equal to the excess, if  any,  of (a)  the  amount  of  such  Lender’s  Revolving  Commitment  over  (b) the  aggregate  outstanding principal amount of all Revolving Credit Exposure of such Lender as of such date.        “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.        “Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive  2014/59/EU  of  the  European  Parliament  and  of  the  Council  of  the  European  Union,  the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.        “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy.”        “Bankruptcy Event” means, with respect to any Person, the occurrence of any of the following: (a) the entry of a decree or order for relief by a court or governmental agency in an involuntary case under any applicable Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in effect, or the appointment by a court or governmental agency of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its Property or the ordering of the winding up or liquidation of its affairs by a court or governmental agency and such decree, order  or  appointment  is  not  vacated  or  discharged  within  sixty  (60)  days  of  its  filing;  or  (b)  the commencement against such Person of an involuntary case under any applicable Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in effect, or of any case, proceeding or other  action  for  the  appointment  of  a  receiver,  liquidator,  assignee,  custodian,  trustee,  sequestrator  (or similar official) of such Person or for any substantial part of its property or for the winding up or liquidation of its affairs, and such involuntary case or other case, proceeding or other action shall remain undismissed for a period of sixty (60) consecutive days, or the repossession or seizure by a creditor of such Person of a substantial part of its property; or (c) such Person shall commence a voluntary case under any applicable Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in effect, or consent  to the  entry of an order for relief in an involuntary case under any such law,  or consent  to the                                        5 

 

appointment of or the taking possession by a receiver, liquidator, assignee, creditor in possession, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its property or make any general assignment for the benefit of creditors; or (d) the filing of a petition by such Person seeking to take advantage of any Debtor Relief Law or any other applicable Law,  domestic or foreign, relating to bankruptcy, insolvency,  reorganization,  winding up,  or composition  or adjustment  of debts, or (e) such Person shall fail to contest in a timely and appropriate manner (and if not dismissed within sixty (60) days) or shall consent to any petition filed against it in an involuntary case under such bankruptcy laws or other applicable  Law  or  consent  to  any  proceeding  or  action  relating  to  any  bankruptcy,  insolvency, reorganization, winding up, or composition or adjustment of debts with respect to its assets or existence, or (f) such Person shall admit in writing an inability to pay its debts generally as they become due.        “Base Rate” means, for any day, a rate per annum equal to the greatest of (i) the Prime Rate in effect on such day, (ii) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of one percent (0.50%) and (iii) the LIBOR Index Rate in effect on such day plus one percent (1.0%).  Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the LIBOR Index Rate shall be effective on the effective day of such change in the Prime Rate, the Federal Funds Effective Rate or the LIBOR Index Rate, respectively.        “Base Rate Loan” means a Loan bearing interest at a rate determined by reference to the Base Rate.        “Beneficial Ownership Certification” means a certification regarding beneficial ownership required by  the  Beneficial Ownership  Regulation,  which  certification  shall  be  substantially  similar  in  form  and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly,  in  May  2018,  by  the  Loan  Syndications  and  Trading  Association  and  Securities  Industry  and Financial Markets Association.        “Beneficial Ownership Regulation”. means 31 C.F.R. §1010.230.        “Borrower” means as provided in the introductory paragraph to this Agreement.        “Borrowing” means (a) a borrowing consisting of simultaneous Loans of the same Type of Loan and, in the case of Adjusted LIBOR Rate Loans, having the same Interest Period, or (b) a borrowing of Swingline Loans, as appropriate.        “Borrowing Base” means, as of any date of determination, that amount which is the lesser of: (a) that amount which would result in a Consolidated Unsecured Leverage Ratio of 0.60 to 1.00 (provided that, if the Borrower shall have consummated a Material Acquisition, then such amount shall, at the Borrower’s election, be the amount which would result in a Consolidated Unsecured Leverage Ratio of 0.65 to 1.00 for a maximum of four consecutive Fiscal Quarters following such Material Acquisition), and (b) that amount which would result in an Unencumbered Debt Service Coverage Ratio of 1.75 to 1.00; provided, however, at no time shall:             (I)   the  percentage  of  the  Borrowing  Base  attributable  to  Unencumbered  Pool      Properties that are Healthcare Facilities other than Medical Office Properties exceed fifty percent      (50.0%); and             (II)  the  percentage  of  the  Borrowing  Base  attributable  to  Unencumbered  Pool      Properties (A) that are subject to Eligible Ground Leases and (B) which are so-called off-campus      properties (greater than 1⁄2 mile of a hospital campus) exceed fifteen percent (15.0%) (but for the      avoidance of doubt, any such Real Estate Assets subject to Eligible Ground Leases which are so-                                         6 

 

      called on-campus properties (located within 1⁄2 mile of a hospital campus) shall not be subject to       the percentage limitation set forth in this clause (II));               (III)  the percentage  of the  Borrowing Base attributable to any single Unencumbered       Pool Property exceed twenty percent (20.0%); and               (IV)  the  percentage  of  the  Borrowing  Base  attributable  to  Unencumbered  Pool       Properties held by Joint Venture Entities shall not exceed twenty percent (20.0%), with the Total       Asset Value and Adjusted NOI from Unencumbered Pool Properties being determined based on       the Borrower’s ownership percentage in the respective Joint Venture Entity.  To the extent any of the limitations in the forgoing proviso are exceeded, any such excess shall be excluded from  the  calculation  of  the  Borrowing  Base  hereunder.   All  of the  foregoing  shall  be  as  calculated  by Borrower and supported by financial information which has been delivered to the Administrative Agent pursuant to the terms of this Agreement (subject to any restatement of or other adjustment to the financial statements of the Borrower or for any other reason), as approved by Administrative Agent from time to time in its sole but reasonable discretion.        “Borrowing Base Certificate” shall mean a certificate substantially in the form of Exhibit 7.1(c)-2  hereto delivered to the Administrative Agent pursuant hereto and (a) setting forth each Real Estate Asset  of the Credit Parties and their Subsidiaries, identifying which such Real Estate Assets are Unencumbered  Pool Properties and certifying (subject to the qualifications set forth in clause (b) herein) (1) the Aggregate  Unencumbered Pool Property Value Amount, detailing the calculation of the Unencumbered Pool Property  Value with respect to each Unencumbered Pool Property, (2) the then applicable Consolidated Unsecured  Leverage Ratio, (3) the then applicable Unencumbered Debt Service Coverage Ratio, and (4) the respective  percentages  of  the  Borrowing  Base  attributable  to:  Unencumbered  Pool  Properties  that  are  Healthcare  Facilities (x) other than Medical Office Properties, (y) (A) subject to Eligible Ground Leases and (B) which  are so-called  off-campus properties  (greater than 1⁄2 mile  of a hospital campus),  and (z) comprising the  single largest Unencumbered Pool Property (based on the percentage of the Borrowing Base attributable to  such Unencumbered Pool Property); (b) certifying (in the Borrower’s good faith and based upon its own  information and the information made available to any Credit Party or Unencumbered Property Owner by  the applicable Tenants respecting the Unencumbered Pool Properties, which information the Credit Parties  believe in good faith to be true and correct in all material respects) (x) as to the calculation of the Borrowing  Base as of the date of such certificate and (y) that each Real Estate Asset included in the calculation of the  Borrowing Base meets each of the criteria for qualification as (1) an Unencumbered Pool Property and (2)  set forth in the definition of Borrowing Base; and (c) providing such other information with respect to the  Unencumbered Pool Properties as the Administrative Agent may reasonably require.         “Business Day” means (i) any day excluding Saturday, Sunday and any day which is a legal holiday  under the laws of the State of New York or is a day on which banking institutions located in such state are  authorized or required by law or other governmental action to close, and (ii) with respect to all notices,  determinations,  fundings  and  payments  in  connection  with  the  Adjusted  LIBOR  Rate  or  any  Adjusted  LIBOR Rate Loans (and in the case of determinations, the LIBOR Index Rate), the term “Business Day”  means any day which is a Business Day described in clause (i) and which is also a day for trading by and  between banks in Dollar deposits in the London interbank market.         “Calculation Period” means the trailing twelve (12) month calculation period ending on any date  of determination.         “Capitalization  Rate”  means,  the  rate  indicated  below with  respect  to  each  type  of  Real  Estate  Asset:                                         7 

 

     (a)   Medical Office Properties: 6.00%       (b)   life science facilities: 6.00%       (c)   long term acute care facilities: 9.25%       (d)   rehabilitation facilities: 9.25%       (e)    skilled nursing facilities: 10.00%       (f)   independent living facilities: 7.75%       (g)   assisted living facilities: 7.75%       “Capital Lease” means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.        “Capital Reserves” means a capital reserve per annum calculated as the sum of $0.50 per square foot  times  the  gross  leasable  area  for  each  Real  Estate  Asset  owned  by  a  Consolidated  Party  or  an Unconsolidated Affiliate.        “Capital Stock” means (a) in the case of a corporation, capital stock, (b) in the case of an association or  business  entity,  any  and  all  shares,  interests,  participations,  rights  or  other  equivalents  (however designated)  of  capital  stock,  (c)  in  the  case  of  a  partnership,  partnership  interests  (whether  general  or limited), (d) in the case of a limited liability company, membership interests and (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.        “Capitalized Lease Obligation” means an obligation under a lease of any property (whether real, personal or mixed) that is required to be capitalized for financial reporting purposes in accordance with GAAP.  The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation as would be required to be reflected on a balance sheet prepared in accordance with GAAP as of the applicable date.        “Cash Collateralize” means, to pledge and deposit with or deliver to the Administrative Agent, the Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or deposit  account  balances  or,  if  the  Administrative  Agent,  the  Issuing  Bank  or  Swingline  Lender,  as applicable, may agree in their sole discretion, other credit support, in each case pursuant to documentation in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent,  the  Issuing  Bank  and/or Swingline Lender, as applicable.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.        “Cash Equivalents” means, as at any date of determination, any of the following: (a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States government, or (ii) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing within one (1) year after such date; (b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one (1) year after such date and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (c) commercial paper maturing no more than one (1) year from the date of creation thereof and                                         8 

 

having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (d) certificates of deposit or bankers’ acceptances maturing within one (1) year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States or any state  thereof  or  the  District  of  Columbia  that  (i)  is  at  least  “adequately  capitalized”  (as  defined  in  the regulations  of  its  primary  federal  banking  regulator),  and  (ii)  has  Tier  1  capital  (as  defined  in  such regulations) of not less than $100,000,000; and (e) shares of any money market mutual fund that (i) has substantially all of its assets invested continuously in the types of investments referred to in clauses (a) and (b) above, (ii) has net assets of not less than $500,000,000, and (iii) has the highest rating obtainable from either S&P or Moody’s.        “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking  effect of any law,  rule, regulation or treaty,  (b) any change in any law,  rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein  to  the  contrary,  (x)  the  Dodd-Frank  Wall  Street  Reform  and  Consumer  Protection  Act  and  all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in  each case pursuant  to Basel III, shall in  each  case be deemed to be a “Change  in Law,” regardless of the date enacted, adopted or issued.        “Change of Control” means an event or series of events by which:              (a)  any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the      Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries,      and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator      of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the      Exchange Act of 1934), directly or indirectly, of thirty-five percent (35)% or more of the Capital      Stock of the Parent entitled to vote for members of the board of directors or equivalent governing      body of the Parent on a fully diluted basis; or              (b)  during  any  period  of  twenty-four  (24)  consecutive  months,  a  majority  of  the      members of the board of directors or other equivalent governing body of the Parent cease to be      composed of individuals (i) who were members of that board or equivalent governing body on the      first day of such period, (ii) whose election or nomination to that board or equivalent governing      body was approved by individuals referred to in clause (i) above constituting at the time of such      election or nomination at least a majority of that board or equivalent governing body or (iii) whose      election  or  nomination  to  that  board  or  other  equivalent  governing  body  was  approved  by      individuals  referred  to  in  clauses  (i)  and  (ii)  above  constituting  at  the  time  of  such  election  or      nomination at least a majority of that board or equivalent governing body; or              (c)  the Parent ceases to own, directly or indirectly, sixty percent (60.0%) of the limited      partnership interests in the Borrower.       “CMS” means the Centers for Medicare & Medicaid Services, the federal agency responsible for administering  the  Medicare,  Medicaid,  SCHIP  (State  Children’s  Health  Insurance),  HIPAA  (Health Insurance Portability and Accountability Act), CLIA (Clinical Laboratory Improvement Amendments), and several other federal health-related programs.                                         9 

 

     “Co-Syndication Agents” means, singly and collectively, (i) BMO Capital Markets and (ii) Citizens Bank, N.A.        “Commitments”  means  the  Revolving  Commitments  or  the  Term  Commitments  or  any combination thereof, as the context may require.        “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. §1 et seq.).        “Compliance  Certificate”  means  a  Compliance  Certificate  substantially  in  the  form  of  Exhibit 7.1(c)-1.        “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.        “Consolidated Fixed Charge Coverage Ratio” means, as of any date of determination, the ratio of (a) Adjusted EBITDA for the four-Fiscal Quarter period most recently ended, to (b) Fixed Charges for such four-Fiscal Quarter period.        “Consolidated  Interest  Charges”  means,  for  any  period,  for  the  Consolidated  Parties  on  a consolidated basis, an amount equal to the sum of (i) all interest, premium payments, debt discount, fees, charges  and  related  expenses  in  connection  with  borrowed  money  (including capitalized  interest)  or  in connection  with  the  deferred  purchase  price  of  assets,  in  each  case  to  the  extent  treated  as  interest  in accordance  with GAAP, plus (ii) the portion  of rent  expense  with respect to such period under Capital Leases that  is treated as  interest  in accordance  with GAAP  plus (iii) the implied  interest  component  of Synthetic Leases with respect to such period.        “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Total Indebtedness on such date to (b) Total Asset Value on such date.        “Consolidated Net Income” means, for any period, without duplication, for the Consolidated Parties on a consolidated basis, the net income of the Parent and its Subsidiaries, excluding extraordinary gains and losses for such period, as determined in accordance with GAAP (for the avoidance of doubt, gains and losses from the sale of Real Estate Assets shall not be considered extraordinary gains and losses).        “Consolidated Parties” means a collective reference to the Parent and the Subsidiaries of the Parent, and “Consolidated Party” means any one of them.       “Consolidated Secured Indebtedness Leverage Ratio” means, as of any date of determination, the quotient (expressed as a percentage) of (a) Secured Indebtedness, divided by (b) Total Asset Value.       “Consolidated Taxes” means, for any period, for the Consolidated Parties on a consolidated basis, the aggregate of all taxes, as determined in accordance with GAAP.       “Consolidated Total Indebtedness” means, as of any date of determination, without duplication, the aggregate amount of Indebtedness of the Consolidated Parties, on a consolidated basis.        “Consolidated  Total  Unsecured  Indebtedness”  means,  as  of  any  date  of  determination,  without duplication, the aggregate amount of Unsecured Indebtedness of the Consolidated Parties, on a consolidated basis.                                         10 

 

      “Consolidated Unsecured Interest Charges” means, for any period, for the Consolidated Parties on  a consolidated basis, an amount equal to the Consolidated Interest Charges determined solely with respect  to Consolidated Total Unsecured Indebtedness.         “Consolidated Unsecured Leverage Ratio” means, as of any date of determination, the ratio of (a)  Consolidated Total Unsecured Indebtedness on such date to (b) the Aggregate Unencumbered Pool Property Value Amount on such date.        “Construction-In-Process”  means any Real Estate Asset  which  does  not  have buildings or other  improvements  located  thereon,  but  which  is  under  development  for  the  construction  of  buildings  or  improvements  which  will qualify as  or will constitute Healthcare Facilities upon completion (or,  to the  extent any buildings or improvements are located thereon, such buildings or other improvements are under  construction and  are  non-operational,  and  no  certificate(s)  of occupancy  have  been  issued  with  respect  thereto),  and/or the budgeted costs associated  with the acquisition and construction of such Real Estate  Asset, including, but not limited to, the cost of acquiring such Real Estate Asset as reasonably determined  by Borrower in good faith, as the context may require.         “Contractual Obligation” means, as applied to any Person, any provision of any Security issued by  that  Person  or  of  any  indenture,  mortgage,  deed  of  trust,  contract,  undertaking,  agreement  or  other  instrument to which that Person is a party or by which it or any of its properties is bound or to which it or  any of its properties is subject.         “Control” means the possession, directly or indirectly, of the power to direct or cause the direction  of the management or policies of a Person, whether through the ability to exercise voting power, by contract  or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.         “Conversion/Continuation Date” means the effective date of a continuation or conversion, as the  case may be, as set forth in the applicable Conversion/Continuation Notice.         “Conversion/Continuation Notice” means a Conversion/Continuation Notice substantially in the  form of Exhibit 2.8.         “Credit Date” means the date of a Credit Extension.         “Credit Document” means any of this Agreement, the Notes, any Guaranty, any Guarantor Joinder  Agreement, the Fee Letter, any document executed and delivered by the Borrower and/or any other Credit  Party and/or any Lender pursuant to which any Aggregate Revolving Commitments or the Term Loans are  increased pursuant to Section 2.19, any documents or certificates executed by any Credit Party in favor of  the Issuing Bank relating to Letters of Credit, and, to the extent evidencing or securing the Obligations, all  other documents, instruments or agreements executed and delivered by any Credit Party for the benefit of  the  Administrative  Agent,  the  Issuing  Bank  or  any  Lender  in  connection  herewith  or  therewith,  and  including for the avoidance of doubt, any Guarantor Joinder Agreement (but specifically excluding secured  Swap Contracts and secured Treasury Management Agreements).         “Credit Extension” means the making of a Revolving Loan, Term Loan or the issuing of a Letter  of Credit.         “Credit Parties” means, collectively, the Borrower and each Guarantor.         “Credit Rating” means the rating assigned by a Rating Agency to the senior unsecured long term  Indebtedness of a Person.                                          11 

 

     “Customary Recourse Exceptions” means, with respect to any Indebtedness, personal recourse that is limited to fraud, misrepresentation, misapplication of cash, waste, environmental claims and liabilities, prohibited transfers, and violations of single purpose entity covenants.        “Debtor  Relief  Laws”  means  the  Bankruptcy  Code,  and  all  other  liquidation,  conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.        “Default” means a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.        “Default Rate” means an interest rate equal to the Base Rate plus the Applicable Margin applicable to Base Rate Loans plus two percent (2%) per annum.        “Defaulting Lender” means, subject to Section 2.16(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in  such  writing)  has  not  been  satisfied,  or  (ii)  pay  to  the  Administrative  Agent,  the  Issuing  Bank,  the Swingline Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or the Issuing Bank or Swingline Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to  fund  a  Loan  hereunder  and  states  that  such  position  is  based  on  such  Lender’s  determination  that  a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (e) has become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (e) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.16(b)) upon delivery of written notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender.        “Dollars” and the sign “$” mean the lawful money of the United States.                                         12 

 

     “Domestic Subsidiary” means any Subsidiary organized under the laws of the United States, any state thereof or the District of Columbia.        “EBITDA” means, with respect to a Person for any period, the sum of: (a) net income (or loss) of such  Person  for  such  period  determined  on  a  consolidated  basis  (excluding  any  income  or  losses  from minority interests in the case of the Parent), in accordance with GAAP excluding acquisition related costs, and, exclusive of the following (but only to the extent included in determination of such net income (loss)): (i) depreciation and amortization expense; (ii) interest expense; (iii) income tax expense; (iv) extraordinary or non-recurring gains and losses; plus (b) such Person’s pro rata share of EBITDA of its Unconsolidated Affiliates.  EBITDA shall be adjusted to remove any impact from straight line rent leveling adjustments required  under  GAAP  and  amortization  of  deferred  market  rent  into  income  pursuant  to  Statement  of Financial Accounting Standards number 141.        “ECP Rules” means as defined in Section 4.1.        “EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.        “EEA  Member  Country”  means  any  of  the  member  states  of  the  European  Union,  Iceland, Liechtenstein, and Norway.        “EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.        “Effective Date” means August 7, 2018.        “Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.5(b), subject to any consents and representations, if any as may be required therein.        “Eligible Ground Lease” means, at any time, a ground lease (a) under which an Unencumbered Property Owner is the lessee and is the fee owner of the structural improvements located thereon, (b) that has a remaining term of not less than thirty (30) years (including the initial term and any additional extension options that are solely at the option of such Unencumbered Property Owner), (c) where no party to such lease  is  subject  to  a  then  continuing  Bankruptcy  Event,  (d)  such  ground  lease  (or  a  related  document executed  by  the  applicable  ground  lessor)  contains  customary  provisions  protective  of  a  first  mortgage lender to the ground lessee thereunder,  (e)  where such Unencumbered Property Owner’s interest  in the underlying Real Estate Asset or the ground lease is not subordinate to any Lien other than any fee mortgage (so long as the mortgagee under such fee mortgage has agreed not to disturb the rights and interests of such Unencumbered  Property  Owner  pursuant  to a  non-disturbance  agreement  reasonable  satisfactory  to  the Administrative Agent), any Permitted Liens and such other encumbrances that are reasonably acceptable to the Administrative Agent, and (f) which is otherwise reasonably acceptable to the Administrative Agent.        “Environmental Claim” means any known investigation, written notice, written notice of violation, written claim, action, suit, proceeding, written demand, abatement order or other written order or directive (conditional or otherwise), by any Person arising (i) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (ii) in connection with any Hazardous Material or any actual or alleged                                         13 

 

Hazardous Materials Activity; or (iii) in connection with any actual or alleged damage, injury, threat or harm to human health, safety, natural resources or the environment.        “Environmental Laws” means any and all current or future federal or state (or any subdivision of  either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations,  or any other written requirements of Governmental Authorities relating to (i)  any Hazardous Materials  Activity;  (ii)  the  generation,  use,  storage,  transportation  or  disposal  of  Hazardous  Materials;  or  (iii)  protection of the environment from pollution, in any manner applicable to any Credit Party or any of its  Subsidiaries or their respective Facilities.         “Environmental Liability” means any liability, contingent or otherwise (including any liability for  damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, Parent, any  Unencumbered Property Owner or any of their respective Subsidiaries directly or indirectly resulting from  or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation,  storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the  Release  or  threatened  Release  of  any  Hazardous  Materials  into  the  environment  or  (e)  any  contract,  agreement or other consensual arrangement pursuant to which Borrower or any Subsidiary assumed liability  with respect to any of the foregoing.         “Equity Interests” means, with respect to any Person, all of the shares of Capital Stock of (or other  ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or  acquisition from such Person of shares of Capital Stock of (or other ownership or profit interests in) such  Person,  all  of  the  securities  convertible  into  or  exchangeable  for  shares  of  capital  stock  of  (or  other  ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition  from such Person of such shares (or such other interests), and all of the other ownership or profit interests  in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and  whether  or  not  such  shares,  warrants,  options,  rights  or  other  interests  are  outstanding  on  any  date  of  determination.         “Equity Issuance” means, with respect to the Parent or any of its Subsidiaries, any issuance or sale  by the Parent or such Subsidiary of shares of its Equity Interests, other than an issuance (a) to the Parent or  any of its wholly-owned Subsidiaries, (b) in connection with a conversion of debt securities to equity, (c)  in connection with the exercise by a present or former employee, officer or director under a stock incentive  plan, stock option plan or other equity-based compensation plan or arrangement, (d) which occurred prior  to the Effective Date, or (e) in connection with any Acquisition or capital expenditures permitted under this  Agreement.         “ERISA”  means  the  Employee  Retirement  Income  Security  Act  of  1974,  and  the  regulations  thereunder.         “ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a member of a  controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of  which that Person is a member; (ii) any trade or business (whether or not incorporated) which is a member  of  a  group  of  trades  or  businesses  under  common  control  within  the  meaning  of  Section  414(c)  of  the  Internal Revenue Code of which that Person is a member; and (iii) any member of an affiliated service  group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any  corporation described in clause (i) above or any trade or business described in clause (ii) above is a member.         “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and  the regulations issued thereunder with respect to any Pension Plan (excluding those for which notice to the  PBGC has been waived by regulation); (ii) the failure to meet the minimum funding standard of Section                                         14 

 

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

 

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

 

     “FATCA” means Sections 1471 through 1474 of the Internal Revenue Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous  to  comply  with),  any  current  or  future  regulations  or  official  interpretations  thereof  and  any agreements entered into pursuant to Section 1471(b) of the Internal Revenue Code.        “Federal Funds Effective Rate” means for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (1/100 of 1%)) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided, (i) if such day is not a Business Day,  the Federal Funds Effective Rate for such day shall be such rate on such transactions  on the next preceding Business Day as so published on the next succeeding Business Day, and (ii) if no such rate is so published on such next succeeding Business Day, the Federal Funds Effective Rate for such day shall be the average rate charged to KeyBank or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent.        “Fee Letter” means that certain letter agreement  dated June 4, 2018 entered into by and among KeyBank, KeyBanc Capital Markets, and the Borrower.        “Financial Officer Certification” means, with respect to the financial statements for which such certification is required, the certification of the chief financial officer, principal accounting officer, treasurer or controller of the Parent that such financial statements fairly present, in all material respects, the financial condition of the Parent and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows  for the periods indicated,  subject  to changes  resulting from audit  and  normal  year-end adjustments.        “Fiscal Quarter” means a fiscal quarter of any Fiscal Year.        “Fiscal Year” means the fiscal year of the Parent and its Subsidiaries ending on December 31 of each calendar year.        “Fitch” means Fitch Ratings Inc., together with its successors.        “Fixed  Charges”  means,  for any  period,  the  sum  of  (a) Consolidated  Interest  Charges  for  such period,  plus  (b)  all  regularly  scheduled  principal  payments  made  with  respect  to  Indebtedness  of  the Borrower,  the  Guarantors  and  their  respective  Subsidiaries  during  such  period,  other  than  any  balloon, bullet or similar principal payment which repays such Indebtedness in full (provided that any such regularly scheduled principal payments that are not payable monthly shall, for purposes of this definition, be treated as if such payment were payable in equal monthly installments commencing on such payment date to and including the month immediately prior to the date of the next such scheduled payment or, if there is no such next  scheduled  payment,  the  maturity  date  therefor), plus  (c) all  Preferred  Dividends  paid  during  such period.  Each Consolidated Party’s Ownership Share of the Fixed Charges of its Unconsolidated Affiliates shall be included in the determination of Fixed Charges.         “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.        “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.                                         17 

 

     “FRB” means the Board of Governors of the Federal Reserve System of the United States.        “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the Issuing Bank,  such Defaulting  Lender’s Revolving Commitment  Percentage of the outstanding Letter of Credit Obligations  with  respect  to  Letters  of  Credit  issued  by  the  Issuing  Bank  other  than  Letter  of  Credit Obligations as to which such Defaulting Lender’s participation obligation has been reallocated  to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swingline Lender,  such  Defaulting  Lender’s  Revolving  Commitment  Percentage  of  outstanding  Swingline  Loans made  by  the  Swingline  Lender  other  than  Swingline  Loans  as  to  which  such  Defaulting  Lender’s participation obligation has been reallocated to other Lenders.        “Fund” means any Person (other than a natural person) that  is (or will be)  engaged in  making, purchasing,  holding  or  otherwise  investing  in  commercial loans  and  similar  extensions  of  credit  in  the ordinary course of its activities.        “Funded  Debt”  means,  as  to  any  Person  at  a  particular  time,  without  duplication,  all  of  the following,  whether  or  not  included  as  indebtedness  or  liabilities  in  accordance  with  GAAP  (except  as provided in clauses (a)(ii) and (b) below):              (a)   all obligations for borrowed money, whether current or long-term (including the       Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan agreements or       other  similar  instruments  but  specifically  excluding  (i)  trade  payables  incurred  in  the  ordinary       course of business and (ii) earn outs or other similar deferred or contingent obligations incurred in       connection with any Acquisition until such time as such earn outs or obligations are recognized as       a liability on the balance sheet of the Parent and its Subsidiaries in accordance with GAAP;              (b)   all  obligations  in  respect  of  the  deferred  purchase  price  of  property  or  services       (other than trade accounts payable in the ordinary course of business and, in each case, not past due       for more than sixty (60) days after the date on which such trade account payable  was created),       including, without limitation, any earn out obligations recognized as a liability on the balance sheet       of the Parent and its Subsidiaries in accordance with GAAP;              (c)   all obligations under letters of credit (including standby and commercial), bankers’       acceptances and similar instruments (including bank guaranties);              (d)   the  Attributable  Indebtedness  of  Capital  Leases,  Synthetic  Leases  and       Securitization Transactions;              (e)   all  preferred  stock  and  comparable  equity  interests  providing  for  mandatory       redemption, sinking fund or other like payments;              (f)   Guarantees in respect of Funded Debt of another Person; and              (g)   Funded Debt of any partnership or joint venture or other similar entity in which       such  Person  is  a  general  partner  or  joint  venturer, and,  as  such,  has  personal  liability  for  such       obligations, but only to the extent there is recourse to such Person for payment thereof.  For purposes hereof, the amount of Funded Debt shall be determined (i) based on the outstanding principal amount in the case of borrowed money indebtedness under clause (a) and purchase money indebtedness and the deferred purchase obligations under clause (b), (ii) based on the maximum amount available to be                                         18 

 

drawn in the case of letter of credit obligations and the other obligations under clause (c), and (iii) based on  the amount of Funded Debt that is the subject of the Guarantees in the case of Guarantees under clause (f).         “Funding Notice” means a notice substantially in the form of Exhibit 2.1.         “GAAP”  means,  subject  to  the  limitations  on  the  application  thereof  set  forth  in  Section  1.2,  accounting  principles  generally  accepted  in  the  United  States  in  effect  as  of  the  date  of  determination  thereof.         “Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or  future de jure or de facto government or Governmental Authority.        “Governmental Authority” means the government of the United States or any other nation, or of  any  political  subdivision  thereof,  whether  state  or  local,  and  any  agency,  authority,  instrumentality,  regulatory  body,  court,  central  bank  or  other  entity  exercising  executive,  legislative,  judicial,  taxing,  regulatory  or  administrative  powers  or  functions  of  or  pertaining  to  government  (including  any  supra-  national bodies such as the European Union or the European Central Bank and any group or body charged  with setting financial accounting or regulatory capital rules or standards (including, without limitation, the  Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on  Banking Supervision or any successor or similar authority to any of the foregoing)).         “Governmental Authorization” means any permit, license, authorization, plan, directive, consent  order or consent decree of or from any Governmental Authority.         “Guarantee”  means,  as  to  any  Person,  any  obligation,  contingent  or  otherwise,  of  such  Person  guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable  or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and  including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply  funds  for  the  purchase  or  payment  of)  such  Indebtedness  or  other  obligation,  (ii)  to  purchase  or  lease  property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or  other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain  working capital, equity capital or any other financial statement condition or liquidity or level of income or  cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other  obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of  such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee  against loss in respect thereof (in whole or in part).  The amount of any Guarantee shall be deemed to be an  amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in  respect  of  which  such  Guarantee  is  made  or,  if  not  stated  or  determinable,  the  maximum  reasonably  anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term  “Guarantee” as a verb has a corresponding meaning.         “Guarantor Joinder Agreement” means a guarantor joinder agreement substantially in the form of  Exhibit 7.12 delivered by a Domestic Subsidiary of the Borrower pursuant to Section 7.12.         “Guarantors”  means (a) the Parent, (b) each other Person that  joins  as a Guarantor pursuant to  Section  7.12,  (c)  with  respect  to  (i)  Obligations  under  any  Swap  Contract,  (ii)  Obligations  under  any  Treasury Management Agreement and (iii) any Swap Obligation of a Specified Credit Party (determined  before giving effect to Sections 4.1 and 4.8) under the Guaranty, the Borrower, and (d) their successors and  permitted assigns.                                          19 

 

     “Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative Agent, the Lenders and the other holders of the Obligations pursuant to Section 4.        “Hazardous  Materials”  means  any  hazardous  substances  defined  by  the  Comprehensive Environmental  Response  Compensation  and  Liability  Act,  42  USCA  9601,  et.  seq.,  as  amended (“CERCLA”),  including  any  hazardous  waste  as  defined  under  40  C.F.R.  Parts  260-270,  gasoline  or petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls.        “Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or occurrence  involving  any  Hazardous  Materials,  including  the  use,  manufacture,  possession,  storage, holding,  presence,  existence,  location,  Release,  threatened  Release,  discharge,  placement,  generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.        “Healthcare Facility” means any Medical Office Property, outpatient center, group medical practice clinic, ASC (hospital-sponsored or seasoned group practice-sponsored), specialty hospital (short-term stay surgery,  IRH,  oncology),  general  acute  care  hospitals,  selected  post-acute/long-term  care  facilities  and selected senior housing facilities or other property typically owned by healthcare real estate investment trusts and any ancillary businesses that are incidental to the foregoing.        “Healthcare Laws” means as defined in Section 6.22(a).        “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow.        “HIPAA” means the Health Insurance Portability and Accountability Act of 1996 and the related regulations set forth at 45 CFR Parts 160 and 164.        “HMO” means any health maintenance organization, managed care organization, any Person doing business as a health  maintenance  organization or  managed care organization, or any Person required to qualify or be licensed as a health maintenance organization or managed care organization under applicable federal or state law (including, without limitation, HMO regulations).        “Impacted Loans” means as defined in Section 3.1(a)(i).        “Increase Effective Date” means as defined in Section 2.19(d).        “Indebtedness”  means,  with  respect to  a  Person,  at  the  time  of  computation  thereof,  all  of  the following (without duplication): (a) all obligations of such Person in respect of money borrowed or for the deferred purchase price of property or services (excluding trade debt incurred in the ordinary course of business); (b) all obligations of such Person, whether or not for money borrowed (i) represented by notes payable,  or  drafts  accepted,  in  each  case  representing  extensions  of  credit,  (ii)  evidenced  by  bonds, debentures,  notes  or  similar  instruments,  or  (iii)  constituting  purchase  money  indebtedness,  conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily  paid  or  that  are  issued  or  assumed  as  full  or  partial  payment  for  property  or  for  services rendered; (c) Capitalized Lease Obligations of such Person, excluding ground lease obligations recognized as a result of changes in GAAP beginning January 1, 2019; (d) all reimbursement obligations (contingent or otherwise) of such Person under or in respect of any letters of credit or acceptances (whether or not the                                         20 

 

same  have  been  presented  for  payment);  (e)  all  Off-Balance  Sheet  Obligations  of  such  Person;  (f)  all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Mandatorily Redeemable Stock issued by such Person or any other Person, valued at the voluntary or  involuntary  liquidation  preference,  whichever  is  greater,  plus  accrued  and  unpaid  dividends;  (g)  all obligations  of  such  Person  in  respect  of  any  purchase  obligation,  repurchase  obligation,  takeout commitment or forward equity commitment, in each case evidenced by a binding agreement (excluding any such obligation to the extent the obligation can be satisfied by the issuance of Capital Stock (other than Mandatorily Redeemable Stock)); (h) net obligations under any Swap Contract (which shall be deemed to have an amount equal to the Swap Termination Value thereof at such time but in no event shall be less than zero); (i) all Indebtedness of other Persons which such Person has Guaranteed or is otherwise recourse to such  Person  (except  for  guaranties  of  customary  exceptions  for  fraud,  misapplication  of  funds, environmental  indemnities,  voluntary  bankruptcy,  collusive  involuntary  bankruptcy  and  other  similar exceptions to non-recourse liability); (j) all Indebtedness of another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness or other payment obligation; and (k) such Person’s Ownership Share of the Indebtedness of any Unconsolidated Affiliate of such Person.  Indebtedness of any Person shall include Indebtedness of any partnership or joint venture in which such Person is a general partner or joint venturer to  the  extent  of  such  Person’s  Ownership  Share  of  such  partnership  or  joint  venture  (except  if  such Indebtedness, or portion thereof, is recourse to such Person, in which case the greater of such Person’s Ownership Share of such Indebtedness or the amount of the recourse portion of the Indebtedness, shall be included as Indebtedness of such Person).        “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to  any payment made by or on account of any obligation of any Credit Party under any Credit Document and  (b) to the extent not otherwise described in (a), Other Taxes.         “Indemnitee” means as defined in Section 11.2(b).         “Index Rate Determination Date”  means the Effective Date and the first  Business Day  of each  calendar month thereafter; provided, however, that, solely for purposes of the definition of Base Rate, Index  Rate Determination Date means the date of determination of the Base Rate.         “Initial Revolving Maturity Date” means as defined in the definition of “Revolving Maturity Date”  contained in this Section 1.1.         “Intellectual  Property” means  all  trademarks,  service  marks,  trade  names,  copyrights,  patents,  patent rights, franchises related to intellectual property, licenses related to intellectual property and other  intellectual property rights.         “Interest Payment Date” means with respect to (a) any Base Rate Loan and any Adjusted LIBOR  Rate Loan, the last Business Day of each calendar month; and (b) any Swingline Loan, the date on which  repayment of such Swingline Loan was due.         “Interest Period” means, in connection with an Adjusted LIBOR Rate Loan, an interest period of  one (1), two (2), three (3) or six (6) months, as selected by the Borrower in the applicable Funding Notice  or Conversion/Continuation Notice, (i) initially, commencing on the Credit Date (or, with respect to the  Term  Loan,  the  Effective  Date)  or  Conversion/Continuation  Date  thereof,  as the  case  may  be;  and  (ii)  thereafter, commencing on the day on which the immediately preceding Interest Period expires; provided,  (a) if an Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period  shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in                                         21 

 

which case such Interest Period shall expire on the immediately preceding Business Day; (b) any Interest Period  that  begins  on  the  last  Business  Day  of  a  calendar  month  (or  on  a  day  for  which  there  is  no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; (c) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date; and (d) no Interest Period with respect to the outstanding portion of the Term Loan shall extend beyond the Term Maturity Date.        “Interest Rate Determination Date” means, with respect to any Interest Period, the date that is two  (2) Business Days prior to the first day of such Interest Period.         “Internal Revenue Code” means the Internal Revenue Code of 1986.         “Investment”  means,  as to any Person, any direct or indirect acquisition or investment  by such  Person, whether by means of (a) the purchase or other acquisition of Capital Stock of another Person, (b) a  loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition  of any other debt or equity participation or interest in, another Person, including any partnership or joint  venture  interest  in  such  other  Person  and  any  arrangement  pursuant  to  which  the  investor  Guarantees  Indebtedness of such other Person, or (c) an Acquisition.  For purposes of covenant compliance, the amount  of  any  Investment  shall  be  the  amount  actually  invested  plus  the  cost  of  all  additions  thereto,  minus  repayment of or returns on such Investment, without adjustment for subsequent increases or decreases in  the value of such Investment.         “Investment  Grade  Pricing  Grid”  means  the  “Investment  Grade  Pricing  Grid”  as  defined  and  otherwise detailed in the definition of Applicable Margin.         “Investment  Grade  Rating”  means  a  Credit  Rating  of  BBB-/Baa3/BBB-  (or  the  equivalent)  or  higher from a Rating Agency.         “Involuntary Disposition” means the receipt by the Borrower or any of its Subsidiaries of any cash  insurance  proceeds  or  condemnation  awards  payable  by  reason  of  theft,  loss,  physical  destruction  or  damage, taking or similar event with respect to any of its Property.         “IRS” means the United States Internal Revenue Service.         “ISP”  means,  with  respect  to  any  Letter  of  Credit,  the  “International  Standby  Practices  1998”  published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as  may be in effect at the time of issuance of such Letter of Credit).         “Issuance Notice” means an Issuance Notice substantially in the form of Exhibit 2.3.         “Issuing Bank” means KeyBank, in its capacity as issuer of Letters of Credit hereunder, together  with its successors and permitted assigns.         “Joint  Venture Entity” shall  mean a Subsidiary of the Borrower  which is not  a Wholly Owned  Subsidiary but which is consolidated with the Borrower and as to which the full financial, sale and other  major decision making powers are controlled by the Borrower.         “KeyBank” means KeyBank National Association, together with any successor in interest thereto.         “Lead  Arrangers”  means,  singly and collectively,  (i)  KeyBanc Capital Markets,  Inc.,  (ii)  BMO  Capital Markets, and (iii) Citizens Bank, N.A.                                          22 

 

     “Lender” means each Revolving Lender and each Term Lender. The Lenders as of the Effective Date are identified on the signature pages hereto and are set forth on Appendix A.        “Letter of Credit” means any letter of credit issued hereunder.        “Letter of Credit Fees” means as defined in Section 2.10(c)(i).        “Letter  of  Credit  Borrowing”  means  any  Credit  Extension  resulting  from  a  drawing  under  any Letter of Credit that has not been reimbursed or refinanced as a Borrowing of Revolving Loans.        “Letter of Credit Obligations” means, at any time, the sum of (a) the maximum amount available to  be  drawn  under  Letters  of  Credit  then  outstanding,  assuming  compliance  with  all  requirements  for drawings referenced therein, plus (b) the aggregate amount of all drawings under Letters of Credit that have not been reimbursed by the  Borrower,  including Letter of Credit  Borrowings.  For  all purposes of this Agreement, (i) amounts  available to be drawn under Letters of Credit will be calculated as provided in Section 1.3(i), and (ii) if a Letter of Credit has expired by its terms but any amount  may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.        “Letter of Credit Sublimit” means, as of any date of determination, the lesser of (i) ten percent (10%) of the Aggregate Revolving Commitments and (ii) the aggregate Available Commitments then in effect.        “LIBOR Index Rate” means, for any interest rate calculation with respect to a Base Rate Loan on any date, (a) the rate per annum (rounded upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to the rate determined by the Administrative Agent to be the offered rate which appears on the page of Reuters Screen LIBOR01 Page or any successor thereto approved by the Administrative Agent if such page no longer reports such rate for deposits (for delivery on the first day of such period) with a term of one month commencing that day in Dollars, determined two (2) Business Days prior to such date as of approximately 11:00 a.m. (London, England time) on such day, or (b) in the event the rate referenced in the preceding clause (a) does not appear on such page or service or if such page or service shall cease to be available, the rate per annum (rounded upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service which displays an average rate for deposits  (for delivery on the first day of such period) with a term of one month in Dollars, determined two (2) Business Days prior to such date as of approximately 11:00 a.m. (London, England time) on such day, or (c) in the event the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum (rounded upward to the next whole multiple of one one-hundredth of one percent (1/100 of 1%)) equal to quotation rate (or the arithmetic mean of rates) offered to first class banks in the London interbank market for deposits (for delivery on the first day of the relevant period) in Dollars of amounts in same day funds comparable to the principal amount of the applicable Loan of KeyBank or any other Lender selected by the Administrative Agent, for which the  LIBOR Index Rate is then being determined  with maturities comparable to  such period as of approximately 11:00 a.m. (London, England time); provided that if  the foregoing rate shall be less than zero percent, the LIBOR Index Rate shall be deemed to be  zero percent for the purposes of this Agreement.        “LIBOR Index Rate Loan” means any Loan bearing interest based on the LIBOR Index Rate.        “LIBOR Loan” means Adjusted LIBOR Rate Loans or LIBOR Index Rate Loans, as applicable.                                         23 

 

     “Lien” means (i) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of  any  kind  (including  any  agreement  to  give  any  of  the  foregoing,  any  conditional  sale  or  other  title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement  having  the  practical  effect  of  any  of  the  foregoing,  and  (ii)  in  the  case  of  Securities,  any purchase option, call or similar right of a third party with respect to such Securities.        “Loan” means any Revolving Loan, Swingline Loan, or the Term Loan, in each case as the context may require, and the Base Rate Loans and LIBOR Loans comprising such Loans.        “Mandatorily Redeemable Stock” means, with respect to any Person, any Capital Stock of such Person which by the terms of such Capital Stock (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than Capital Stock which is redeemable solely in exchange for common stock or other equivalent common Capital Stock), (b) is convertible into or exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock, or (c) is redeemable at the option of the holder thereof (other than in connection with customary provisions related to redemptions upon a change of control or asset sale), in whole or in part (other than Capital Stock which is redeemable solely in exchange for common stock or other equivalent common Capital Stock); in each case, on or prior to the date on which all of the Obligations are scheduled to be due and payable in full.        “Margin Stock” means as defined in Regulation U of the FRB as in effect from time to time.        “Master  Agreement”  means  as  defined  in  the  definition  of  “Swap  Contract”  contained  in  this Section 1.1.        “Material Acquisition” means (a) a single transaction for the purpose of or resulting, directly or indirectly, in an Acquisition (including the acquisition of assets of any Person whose equity interests are acquired) by one or more of the Borrower and its Subsidiaries of properties or assets of a Person for a gross purchase  price  equal  to  or  in  excess  of  ten  (10%)  of  Total  Asset  Value  (without  giving  effect  to  such Acquisition) or (b) one or more transactions for the purpose of or resulting, directly or indirectly, in an Acquisition (including the acquisition of assets of any Person whose equity interests are acquired) by one or more of the Borrower and its Subsidiaries of properties or assets of a Person in any two consecutive fiscal quarters for an aggregate gross purchase price equal to or in excess of ten (10%) of Total Asset Value (without giving effect to such Acquisitions).        “Material Adverse Effect” means any effect, event, condition, action, omission, change or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a material adverse effect with respect to (i) the business, operations, properties, assets, or financial condition of the Parent, the Borrower and their Subsidiaries taken as a whole; (ii) the ability of the Credit Parties, taken as a whole, to fully and timely perform the Obligations; (iii) the legality, validity, binding effect, or enforceability  against  a  Credit  Party  of  any  Credit  Document  to  which  it  is  a  party;  or  (iv) the  rights, remedies and benefits available to, or conferred upon, the Administrative Agent and any Lender or any holder of Obligations under any Credit Document.        “Material Contract” means any Contractual Obligation to which the Parent, the Borrower or any of their Subsidiaries, or any of their respective assets, are bound (other than those evidenced by the Credit Documents)  for  which  breach,  nonperformance,  cancellation  or  failure  to  renew  could  reasonably  be expected to have a Material Adverse Effect.                                         24 

 

     “Material Lease” means any Tenant Lease which, individually or when aggregated with all other leases at such Unencumbered Pool Property with the same Tenant or any Affiliate of such Tenant, demises 50% or more of such Unencumbered Pool Property’s gross leasable area.  For purposes of determining whether a Tenant Lease which is a “pad” or “ground lease” is a Material Lease under the foregoing sentence, the gross leasable area of any building to be used by the tenant shall be considered and not the surface land area to be leased pursuant to such Tenant Lease.        “Material Subsidiaries” means (i) all Subsidiaries  of the Borrower that own a direct or indirect interest in the Unencumbered Pool Properties included in the definition of Aggregate Unencumbered Pool Property  Value  Amount,  (ii)  all  Subsidiaries  of  the  Borrower  that  guarantee  any  other  Unsecured Indebtedness of the Borrower or the Parent, and (iii) all Subsidiaries that own assets that account for greater than five percent (5%) of Total Asset Value.        “Medicaid” means the medical assistance programs administered by state agencies and approved by CMS pursuant to the terms of Title XIX of the Social Security Act, codified at 42 U.S.C. §§1396 et seq. and related regulations.        “Medical Office Properties” means each Property which is fully developed and operational for use primarily as a medical office building or an office building used for ancillary or support services for another Healthcare Facility.        “Medical Services” means medical and health care services provided to a Person, including, but not limited to,  medical and health care services  provided to a Person which are covered by a policy  of insurance, and includes, without limitation, physician services, nurse and therapist services, dental services, hospital services, skilled nursing facility services, comprehensive outpatient rehabilitation services, home health care services, residential and out-patient behavioral healthcare services, and medicine or health care equipment provided to a Person for a necessary or specifically requested valid and proper medical or health purpose.        “Medicare” means the program of health benefits for the aged and disabled administered by CMS pursuant to the terms of Title XVIII of the Social Security Act, codified at 42 U.S.C. §§1395 et seq. and related regulations.        “Moody’s” means Moody’s Investor Services, Inc., together with its successors.        “Mortgage Receivables” means any loan receivables or similar contracts or arrangements for the payment of money, whether senior or subordinated (in right of payment or otherwise), the obligations under which are secured or backed by commercial real estate, which loan receivables may include commercial mortgage pass-through certificates and commercial mortgage-backed bonds or similar securities and the commercial mortgage loans and properties underlying or backing them, or whole loans, whether senior or subordinated (in right of payment or otherwise), secured by commercial real estate.        “Multiemployer  Plan”  means  any  “multiemployer  plan”  as  defined  in  Section  3(37)  of  ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party or any of its ERISA Affiliates or with respect to which any Credit Party or any of its ERISA Affiliates previously sponsored, maintained or contributed to or was required to contributed to, and still has liability.        “Negative Pledge” means any agreement (other than this Agreement or any other Credit Document) that in whole or in part prohibits the creation of any Lien on any assets of a Person; provided, however, that an agreement that establishes a maximum ratio of unsecured debt to unencumbered assets, or of secured debt  to  total  assets,  or  that  otherwise  conditions  a  Person’s  ability  to  encumber  its  assets  upon  the                                         25 

 

maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets, shall not constitute a “Negative Pledge” for purposes of this Agreement.        “Net Cash Proceeds” means the aggregate proceeds paid in cash or Cash Equivalents received by  any Consolidated Party in connection with any Equity Issuance, net of (a) direct costs incurred in connection  therewith (including legal, accounting and investment banking fees and expenses, sales commissions and  underwriting discounts), and (b) estimated taxes paid or payable (including sales, use or other transactional  taxes and any net marginal increase in income taxes) as a result thereof.  For purposes hereof, “Net Cash  Proceeds”  includes  any  cash  or  Cash  Equivalents  received  upon  the  disposition  of  any  non-cash  consideration received by any  Consolidated Party in connection with any Equity Issuance from and after  the date of such disposition of such non-cash consideration.         “Net Operating Income” or “NOI” means, for any Real Estate Asset and for a given period, an  amount equal to the sum of (a) the gross revenues for such Real Estate Asset for such fiscal period received  in the ordinary course of business (excluding pre-paid rents and revenues and security deposits except to  the extent applied in satisfaction of Tenants’ obligations for rent), minus (b) all operating expenses incurred  with respect to such Real Estate Asset for such fiscal period (including an appropriate accrual for property  taxes, insurance and other expenses not paid quarterly, but excluding debt service charges, income taxes,  depreciation, amortization and other non-cash expenses), including, other than with respect to Real Estate  Assets that are subject to absolute net leases, a management fee equal to the greater of four percent (4.0%)  or actual, minus, without duplication of the foregoing, applicable rental payments made by the applicable  Unencumbered Property Owner, including with respect to any Eligible Ground Lease relating to such Real  Estate Asset.         “Non-Consenting  Lender”  means  any  Lender  that  does  not  approve  any  consent,  waiver  or  amendment that (i) requires the approval of all Lenders or all affected Lenders in accordance with the terms  of Sections 11.4(b) or (c) and (ii) has been approved by the Required Lenders (or all other Lenders, in the  case of any such consent, waiver or amendment that requires the approval of all Lenders) (other than, in  each case, any Defaulting Lender).         “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such  time.         “Non-Recourse  Indebtedness”  means,  for any  Person,  any  Indebtedness  of  such  Person  for  the  repayment of which such Person has no personal liability (other than for Customary Recourse Exceptions)  and/or with respect to which recourse of the applicable holder of such Indebtedness for non-payment is  limited to such holder’s Liens on a particular asset or group of assets (other than for Customary Recourse  Exceptions).         “Note” means a Revolving Loan Note, Term Note or a Swingline Note.         “Notice” means a Funding Notice, an Issuance Notice or a Conversion/Continuation Notice.         “Obligations”  means,  with  respect  to  each  Credit  Party,  all  advances  to,  and  debts,  liabilities,  obligations, covenants and duties of, any Credit Party arising under any Credit Document or otherwise with  respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption),  absolute or contingent, due or to become due, now existing or hereafter arising and including interest and  fees that accrue after the commencement  by or against any Credit Party or any Affiliate thereof of any  proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless  of whether such interest and fees are allowed claims in such proceeding.  The foregoing shall also include                                         26 

 

(a) all obligations under any Swap Contract between any Credit Party and any Swap Bank that is permitted to be incurred pursuant to Section 8.1(f) and (b) all obligations under any Treasury Management Agreement  between any Credit Party and any Treasury Management Bank; provided, however, that the “Obligations”  of a Credit Party shall exclude any Excluded Swap Obligations with respect to such Credit Party.         “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.         “Off-Balance Sheet Obligation” means the monetary obligation of a Person under (a) a Synthetic  Lease or similar off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of  property creating obligations that do not appear on the balance sheet of such Person but which, upon the  insolvency  or  bankruptcy  of  such  Person,  would  be  characterized  as  the  indebtedness  of  such  Person  (without regard to accounting treatment).         “Organizational Documents” means (a) with respect to any corporation, its certificate or articles of  incorporation or organization, as amended, and its by-laws, as amended, (b) with respect to any limited  partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended,  (c) with respect to any general partnership, its partnership agreement, as amended, and (d) with respect to  any limited liability company, its articles of organization, certificate of formation or comparable documents,  as amended, and its operating agreement, as amended.  In the event any term or condition of this Agreement  or any other Credit Document requires any Organizational Document to be certified by a secretary of state  or similar governmental official, the reference to any such “Organizational Document” shall only be to a  document of a type customarily certified by such governmental official.         “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a  present or former connection between such Recipient and the jurisdiction imposing such Tax (other than  connections  arising  from  such  Recipient  having  executed,  delivered,  become  a  party  to,  performed  its  obligations under, received payments under, received or perfected a security interest under, engaged in any  other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan  or Credit Document).        “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing  or  similar  Taxes  that  arise  from  any  payment  made  under,  from  the  execution,  delivery,  performance,  enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with  respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with  respect to an assignment (other than an assignment made pursuant to Section 2.17).         “Outstanding Amount” means (a) with respect to Revolving Loans and Swingline Loans on any  date,  the  aggregate  outstanding  principal  amount  thereof  after  giving  effect  to  any  Borrowings  and  prepayments or repayments of Revolving Loans and Swingline Loans, as the case may be, occurring on  such date; and (b) with respect to any Letter of Credit Obligations on any date, the aggregate outstanding  amount of such Letter of Credit Obligations on such date after giving effect to any Credit Extension of a  Letter  of  Credit  occurring  on  such  date  and  any  other  changes  in  the  amount  of  the  Letter  of  Credit  Obligations as of such date, including as a result of any reimbursements by the Borrower of any drawing  under any Letter of Credit.         “Ownership Share” means the percentage of the Capital Stock owned by a Consolidated Party in  an Unconsolidated Affiliate accounted for pursuant to the equity method of accounting under GAAP.         “Parent” means as provided in the introductory paragraph to this Agreement.         “Participant” means as defined in Section 11.5(d).                                          27 

 

      “Participant Register” means as defined in Section 11.5(d).        “Patriot Act” means as defined in Section 6.15(f).        “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.        “Pension Plan” means any “employee pension benefit plan” as defined in Section 3(2) of ERISA other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party or any of its ERISA Affiliates or with respect to which any Credit Party or any of its ERISA Affiliates previously sponsored, maintained or contributed to, or was required to contribute to, and still has liability.        “Permitted Liens” means each of the Liens permitted pursuant to Section 8.2.        “Permitted  Refinancing”  means  any  extension,  renewal  or  replacement  of  any  existing Indebtedness so long as any such renewal, refinancing and extension of such Indebtedness (a) has market terms and conditions, (b) has an average life to maturity that is greater than that of the Indebtedness being extended, renewed or refinanced, (c) does not include an obligor that was not an obligor with respect to the Indebtedness being extended, renewed or refinanced, (d) remains subordinated, if the Indebtedness being refinanced or extended was subordinated to the prior payment of the Obligations, such extended, renewed or refinanced Indebtedness,  (e) does  not exceed  in a principal amount the Indebtedness being renewed, extended or refinanced plus reasonable fees and expenses incurred in connection therewith, and (f) is not incurred, created or assumed, if any Default or Event of Default has occurred and continues to exist or would result therefrom.        “Person”  means  any  natural  person,  corporation,  limited  liability  company,  trust,  joint  venture, association, company, partnership, Governmental Authority or other entity.        “Preferred  Dividends”  means,  for  any  given  period  and  without  duplication,  all  Restricted Payments accrued or paid (and in the case of Restricted Payments paid, which were not accrued during a prior period) during such period on Preferred Stock issued by a Credit Party or a Subsidiary.  Preferred Dividends shall not include dividends or distributions paid or payable (a) solely in Capital Stock (other than Mandatorily Redeemable Stock) payable to holders of such class of Capital Stock; (b) to the Borrower or a Subsidiary;  or  (c)  constituting  or  resulting  in  the  redemption  of  Preferred  Stock,  other  than  scheduled redemptions not constituting balloon, bullet or similar redemptions in full.        “Preferred  Stock”  means,  with  respect  to  any  Person,  Capital  Stock  in  such  Person  which  are entitled to preference or priority over any other Capital Stock in such Person in respect of the payment of dividends or distribution of assets upon liquidation or both.        “Prime Rate” means the per annum rate which the Administrative Agent publicly announces from time to time to be its prime lending rate, as in effect from time to time.  The Administrative Agent’s prime lending  rate  is  a  reference  rate  and  does  not  necessarily  represent  the  lowest  or  best  rate  charged  to customers.        “Principal  Office”  means,  for  the  Administrative  Agent,  the  Swingline  Lender  and  the  Issuing Bank, such Person’s “Principal Office” as set forth on Appendix B, or such other office as it may from time to time designate in writing to the Borrower and each Lender.                                         28 

 

      “Property” means an interest of any kind in any property or asset, whether real, personal or mixed,  and whether tangible or intangible.         “Qualified  ECP  Guarantor”  means,  at  any  time,  each  Credit  Party  with  total  assets  exceeding  $10,000,000  or  that  qualifies  at  such  time  as  an  “eligible  contract  participant”  under  the  Commodity  Exchange Act and can cause another Person to qualify as an “eligible contract participant” at such time  under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.         “Rating Agency” means S&P, Moody’s, or Fitch.         “Real  Estate  Asset”  means,  a  parcel  of  real  property,  together  with  all  improvements  (if  any)  thereon (including all tangible personal property owned by the person with a fee or leasehold interest in  such real property and used in connection with such fee or leasehold interest in such real property, excluding  any  right  of  use  value  according  to  GAAP  beginning  January  1,  2019),  owned  in  fee  simple  or  leased  pursuant to a ground lease by any Person; “Real Estate Assets” means a collective reference to each Real  Estate Asset.         “Recipient”  means  (a)  the  Administrative  Agent,  (b)  any  Lender  and  (c)  the  Issuing  Bank,  as  applicable.         “Recourse Indebtedness”  means Indebtedness that is not Non-Recourse Indebtedness;  provided  that personal recourse for Customary Recourse Exceptions shall not, by itself, cause such Indebtedness to  be characterized as Recourse Indebtedness.         “Refunded Swingline Loans” as defined in Section 2.2(b)(iii).         “Register” means as defined in Section 11.5(c).         “Reimbursement Date” means as defined in Section 2.3(d).         “REIT” means a real estate investment trust as defined in Sections 856 through 860 of the Internal  Revenue Code.         “Related  Parties”  means,  with  respect  to  any  Person,  such  Person’s  Affiliates  and  the  partners,  directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of  such Person and of such Person’s Affiliates.         “Release”  means  any  release,  spill,  emission,  leaking,  pumping,  pouring,  injection,  escaping,  deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the  indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other  closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material  through the air, soil, surface water or groundwater.         “Removal Effective Date” means as defined in Section 10.6(b).         “Rent Coverage Ratio” means, as of any date of determination with respect any Real Estate Asset  to  be  included  as  an  Unencumbered  Pool  Property,  for  the  applicable  Calculation  Period,  the  ratio,  as  calculated by Borrower and approved by Administrative Agent in its sole but reasonable discretion, of (a)  the aggregate sum of Adjusted NOI for such Real Estate Asset to (b) the actual rental payments received by the Borrower or applicable Unencumbered Property Owner which owns such Real Estate Asset in fee                                          29 

 

simple (or leases such Real Estate Asset under an Eligible Ground Lease) with respect to all applicable Tenant Leases during such applicable Calculation Period.         “Required  Lenders”  means,  as  of  any  date  of  determination,  Lenders  having  greater  than  fifty  percent (50%) of the aggregate amount of the unfunded Commitments, the outstanding Loans and the Letter  of  Credit  Obligations,  or,  if  the  Commitments  have  been  terminated,  Lenders  holding  in  the  aggregate  greater than fifty percent (50%) of the outstanding Loans and Letter of Credit Obligations (including, in  each case, the aggregate amount of each Lender’s risk participation and funded participation in Letter of  Credit Obligations and Swingline Loans); provided that the Commitments of, and the portion of the Loans  and Letter of Credit  Obligations  held  or deemed held by,  any Defaulting Lender shall be  excluded for  purposes of making a determination of Required Lenders.         “Required Revolving Lenders” means, as of any date of determination, Revolving Lenders having  greater than fifty percent (50%) of the aggregate amount of the unfunded Revolving Commitments, the  outstanding Revolving Loans and the Letter of Credit Obligations, or, if the Revolving Commitments have  been  terminated,  Revolving  Lenders  holding  in  the  aggregate  greater  than  fifty  percent  (50%)  of  the  outstanding  Revolving  Loans  and  Letter  of  Credit  Obligations  (including,  in  each  case,  the  aggregate  amount  of  each  Revolving  Lender’s  risk  participation  and  funded  participation  in  Letter  of  Credit  Obligations and Swingline Loans); provided that the Revolving Commitments of, and the portion of the  Revolving Loans and Letter of Credit Obligations held or deemed held by, any Defaulting Lender shall be  excluded for purposes of making a determination of Required Revolving Lenders.         “Required Term Lenders” means, as of any date of determination, Term Lenders having greater  than fifty percent (50%) of the aggregate amount of the outstanding Term Loan; provided that the portion  of the Term Loan held or deemed held by, any Defaulting Lender shall be excluded for purposes of making  a determination of Required Term Lenders.         “Resignation Effective Date” means as defined in Section 10.6(a).         “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other  property) with respect to any Capital Stock of the Parent, the Borrower or any Subsidiary, or any payment  (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of  the purchase, redemption, retirement, acquisition, cancellation or termination of any such Capital Stock or  on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent  Person thereof), or any setting apart of funds or property for any of the foregoing.         “Revolving Commitment” means the commitment of a Revolving Lender to make or otherwise  fund any Revolving Loan and to acquire participations in Letters of Credit and Swingline Loans hereunder  and “Revolving Commitments” means such commitments of all Revolving Lenders in the aggregate.  The  amount of each Revolving Lender’s Revolving Commitment, if any, is set forth on Appendix A or in the  applicable Assignment Agreement, subject to any increase, adjustment or reduction pursuant to the terms  and conditions hereof.  The aggregate amount of the Revolving Commitments as of the Effective Date is  EIGHT HUNDRED FIFTY MILLION DOLLARS ($850,000,000.00). The Revolving Commitment shall  be subject to adjustment as provided in Sections 2.16 and 2.19.         “Revolving Commitment Percentage” means, for each Revolving Lender, a fraction (expressed as  a percentage  carried to the twelfth  decimal  place), the  numerator of  which is such Revolving Lender’s  Revolving Commitment and the denominator of which is the Aggregate Revolving Commitments; provided  that if the commitment of each Revolving Lender to make Revolving Loans and the obligation of the Issuing  Bank to issue Letters of Credit have been terminated pursuant to Section 9.2 or if the Aggregate Revolving  Commitments have expired, then the Revolving Commitment Percentage of each Revolving Lender shall                                         30 

 

be determined based on the Revolving Commitment Percentage of such Revolving Lender most recently in effect, giving effect to any subsequent assignments.  The Revolving Commitment Percentages as of the Effective Date are set forth on Appendix A.  The Revolving Commitment Percentages shall be subject to  adjustment as provided in Section 2.16.         “Revolving Commitment Period” means the period from and including the Effective Date to the  earlier  of  (a)(i)  in  the  case  of  Revolving  Loans  and  Swingline  Loans,  the  Revolving  Commitment  Termination Date or (ii) in the case of the Letters of Credit, the expiration date thereof, or (b) in each case,  the date on which the Revolving Commitments shall have been terminated as provided herein.         “Revolving  Commitment  Termination  Date”  means  the  earliest  to  occur  of  (a)  the  Revolving  Maturity  Date;  (b)  the  date  the  Revolving  Commitments  are  permanently  reduced  to  zero  pursuant  to  Section 2.11(b); and (c) the date of the termination of the Revolving Commitments pursuant to Section 9.2.         “Revolving  Credit  Exposure”  means,  as  to  any  Revolving  Lender  at  any  time,  the  aggregate  principal  amount  at  such  time  of  its  outstanding  Revolving  Loans  and  such  Revolving  Lender’s  participation in Letter of Credit Obligations and Swingline Loans at such time.         “Revolving  Lender”  means  each  financial  institution  with  a  Revolving  Commitment,  or  if  the  Revolving Commitments have been terminated hereunder, each financial institution holding any Revolving  Credit Exposure, together in each instance with its successors and permitted assigns.         “Revolving Loan” means a Loan made by a Lender to the Borrower pursuant to Section 2.1(a).         “Revolving  Loan  Note”  means  a  promissory  note  in  the  form  of  Exhibit  2.5-1,  as  it  may  be  amended, supplemented or otherwise modified from time to time.         “Revolving Maturity Date” means (a) September 18, 2022 (the “Initial Revolving Maturity Date”),  or (b) if the Initial Revolving Maturity Date set forth in the preceding clause (a) is extended pursuant to  Section 2.18, such extended maturity date as determined pursuant to such Section; provided, however, that,  in either case, if such date is not a Business Day, the Revolving Maturity Date shall be the next preceding  Business Day.         “Revolving  Obligations”  means  the  Revolving  Loans,  the  Letter  of  Credit  Obligations  and  the  Swingline Loans.         “Sale and Leaseback Transaction” means,  with respect to  the  Borrower  or any Subsidiary,  any  arrangement, directly or indirectly, with any Person (other than a Credit Party or an Unencumbered Property  Owner) whereby the Borrower or such Subsidiary shall sell or transfer any property, real or personal, used  or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property  or other property that it intends to use for substantially the same purpose or purposes as the property being  sold or transferred.         “Sanctioned  Entity”  means  (a)  a  country  or  a  government  of  a  country,  (b)  an  agency  of  the  government of a country, (c) an organization directly or indirectly controlled by a country or its government,  or (d) a person or entity resident in or determined to be resident in a country, that is subject to a country  sanctions program administered and enforced by OFAC, the United Nations Security Council, the European  Union or Her Majesty’s Treasury (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria).         “Sanctioned  Person”  means  a  person  named  on  the  list  of  Specially  Designated  Nationals  maintained by OFAC.                                          31 

 

      “SEC” means the United States Securities and Exchange Commission.        “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, and any successor thereto.        “Secured Indebtedness” means, as of any date of determination, that portion of Consolidated Total Indebtedness which is secured by a Lien on any real property owned or leased by the Parent, the Borrower or any Subsidiary or Unconsolidated Affiliate, as applicable.        “Secured  Recourse  Indebtedness”  means  any  Secured  Indebtedness  that  is  also  Recourse Indebtedness.        “Securities”  means  any  stock,  shares,  partnership  interests,  limited  liability  company  interests, voting  trust  certificates,  certificates  of  interest  or  participation  in  any  profit-sharing  agreement  or arrangement (e.g., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.        “Securitization Transaction” means any financing or factoring or similar transaction (or series of such transactions) entered by the Borrower or any of its Subsidiaries pursuant to which the Borrower or such Subsidiary may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment (the “Securitization Receivables”)  to  a  special  purpose  subsidiary  or  affiliate  (a  “Securitization  Subsidiary”)  or  any  other Person.        “Shareholder Equity” means, as of any date of determination, consolidated shareholders’ equity of the Parent and its Subsidiaries as of that date determined in accordance with GAAP.        “Solvent” or “Solvency” means, with respect to any Person as of a particular date, that on such date (a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business, (b) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature in their ordinary course, (c) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the  industry in  which such Person is engaged or is to engage, (d) the fair value of the property of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person and (e) the present fair salable value of the assets  of such Person is  not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured.  In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.        “Specified CMBS Indebtedness” means (x) the Indebtedness of (i) Ziegler-Georgia 7, LLC, (ii) Ziegler-Michigan 12, LLC, (iii) Ziegler-Tennessee 14, LLC, (iv) Ziegler-Wisconsin 16, LLC, (v) DOC- Greymark HQ OKC MOB, LLC, and (vi) DOC-Baylor Mansfield ASC, LLC, as such Indebtedness is more particularly identified on Schedule 8.1, and (y) the Indebtedness in existence as of the Effective Date of the following Affiliates:  (i) Sandwich Development Partners, LLC (an Affiliate of Ziegler-Illinois 12, LLC), (ii) Bath Road Associates, LLC (an Affiliate of Ziegler-Maine 15, LLC), (iii) Remington Development                                        32 

 

Partners,  LLC (an Affiliate of Ziegler-Illinois  18,  LLC), or (iv) Crescent City Surgical Centre Facility, L.L.C. (an Affiliate  of DOC-CCSC Crescent  City Surgical Centre,  LLC) in each case to the  extent  the applicable Affiliate becomes a Wholly-Owned Subsidiary of the Borrower or any other Credit Party.        “Specified Credit Party” means any Credit Party that is not then an “eligible contract participant”  under the Commodity Exchange Act (determined prior to giving effect to Section 10.11).         “Subordinated Debt” means any Indebtedness of the Borrower or any of its Subsidiaries that by its  terms  is  expressly  subordinated  in  right  of  payment  to  the  prior  payment  of  the  Obligations  under  this  Agreement  on  terms  and  conditions,  and  evidenced  by  documentation,  reasonably  satisfactory  to  the  Administrative Agent.         “Subsidiary”  means,  with  respect  to  any  Person,  any  corporation,  partnership,  limited  liability  company, association, joint venture or other business entity of which more than fifty percent (50%) of the  total voting power of Capital Stock entitled (without regard to the occurrence of any contingency) to vote  in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing  similar functions) having the power to direct or cause the direction of the management and policies thereof  is  at  the  time  owned  or  controlled,  directly  or  indirectly,  by  that  Person;  provided,  in  determining  the  percentage of ownership interests of any Person controlled by another Person, no ownership interest in the  nature of a “qualifying share” of the former Person shall be deemed to be outstanding.  Unless otherwise  provided, “Subsidiary” shall refer to a Subsidiary of the Borrower.         “Swap Bank” means (a) any Person that is a Lender or an Affiliate of a Lender at the time that it  becomes a party to a Swap Contract with any Credit Party and (b) any Lender on the Effective Date or  Affiliate of such Lender that is party to a Swap Contract with any Credit Party in existence on the Effective  Date, in each case to the extent permitted by Section 8.1(f).         “Swap  Contract”  means  (a)  any  and  all  rate  swap  transactions,  basis  swaps,  credit  derivative  transactions,  forward  rate  transactions,  commodity  swaps,  commodity  options,  forward  commodity  contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or  forward  bond  or  forward  bond  price  or  forward  bond  index  transactions,  interest  rate  options,  forward  foreign  exchange  transactions,  cap  transactions,  floor  transactions,  collar  transactions,  currency  swap  transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar  transactions or any combination of any of the foregoing (including any options to enter into any of the  foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b)  any and all transactions of any  kind, and the related  confirmations, which are subject to the terms  and  conditions of, or governed by, any form of master agreement published by the International Swaps and  Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master  agreement  (any  such  master  agreement,  together  with  any  related  schedules,  a  “Master  Agreement”),  including any such obligations or liabilities under any Master Agreement.         “Swap Obligations” means with respect to any Guarantor any obligation to pay or perform under  any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of  the Commodity Exchange Act.         “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into  account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any  date on or after the date such Swap Contracts have been closed out and termination value(s) determined in  accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in clause  (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based                                          33 

 

upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).        “Swingline Lender” means KeyBank in its capacity as Swingline Lender hereunder, together with  its successors and permitted assigns in such capacity.         “Swingline Loan” means a Loan made by the Swingline Lender to the Borrower pursuant to Section  2.2.         “Swingline Note” means a promissory note in the form of Exhibit 2.5-2, as it may be amended,  supplemented or otherwise modified from time to time.         “Swingline Rate” means the Base Rate plus the Applicable Margin applicable to Base Rate Loans.         “Swingline Sublimit” means, at any time of determination, the lesser of (i) ten percent (10%) of  the Aggregate Revolving Commitments and (ii) the aggregate Available Commitments then in effect.         “Synthetic Lease” means a lease transaction under which the parties intend that (i) the lease will be  treated as an “operating lease” by the lessee pursuant to Statement of Financial Accounting Standards No.  13, as amended and (ii) the lessee will be entitled to various tax and other benefits ordinarily available to  owners (as opposed to lessees) of like property.         “Tangible Net Worth” means, as of a given date, (a) the Shareholder Equity of the Parent and its  Subsidiaries  determined  on  a  consolidated  basis  plus  (b)  accumulated  depreciation  and  amortization  expense minus (c) the following (to the extent reflected in determining Shareholder Equity of the Parent  and its Subsidiaries):  (i) the amount of any write-up in the book value of any assets contained in any balance  sheet resulting from revaluation thereof or any write-up in excess of the cost of such assets acquired, and  (ii) all amounts appearing on the assets side of any such balance sheet for assets which would be classified  as “goodwill” under GAAP, all determined on a consolidated basis.         “Taxes”  means  all  present  or  future  taxes,  levies,  imposts,  duties,  deductions,  withholdings  (including backup withholding), assessments, fees or other similar charges imposed by any Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.         “Tenant”  means  any  Person  who  is  a  lessee  with  respect  to  any  Tenant  Lease  held  by  an  Unencumbered Property Owner as lessor or as an assignee of the lessor thereunder.         “Tenant Lease” means any lease, letting, license, concession or other agreement (whether written  or oral) pursuant to which any Person (other than a Credit Party or an Unencumbered Property Owner) is  granted a possessory interest in, or right to use or occupy all or any portion of, any Unencumbered Pool  Property (provided, the term “Tenant Lease” shall not include any lease, sublease, sub-sublease, letting,  license, concession or other agreement with respect to any residential unit in a multi-family residential Real  Estate Asset), and every modification, amendment or other agreement relating to such lease, sublease, sub-  sublease, or other agreement entered into in connection with such lease, sublease, sub-sublease, or other  agreement,  and  every  guarantee  of  the  performance  and  observance  of  the  covenants,  conditions  and  agreements to be performed and observed by such Person under any such lease, sublease, sub-sublease,  letting, license, concession or other agreement.         “Termination Date” means as defined in the lead-in to Section 7.                                          34 

 

     “Term Commitment” means,  with respect to each Term Lender, the commitment of such Term Lender to make its portion of the Term Loan to the Borrower on the Effective Date in an aggregate principal amount not exceeding the amount set forth with respect to such Term Lender on Appendix A. The aggregate amount  of  the  Term  Commitments  as  of  the  Effective  Date  is  TWO  HUNDRED  FIFTY  MILLION DOLLARS  ($250,000,000.00).  The  Term  Commitment  shall  be  subject  to  adjustment  as  provided  in Section 2.19.        “Term Lender” means each financial institution holding any portion of the Term Loan, together with its successors and permitted assigns.        “Term Loan” has the meaning set forth in Section 2.1(c) hereof.        “Term Maturity Date” means June 10, 2023.        “Term  Note”  means  a  promissory  note  in  the  form  of  Exhibit  2.5-3,  as  it  may  be  amended, supplemented or otherwise modified from time to time.        “Total Asset  Value” means, as of any date of determination, the sum of the following,  without duplication, of the Consolidated Parties for the Fiscal Quarter then most recently ended: (a) the real estate property values of all Real Estate Assets as determined by acquisition cost, excluding any right of use assets recognized as a result of changes in GAAP beginning January 1, 2019, plus (b) unrestricted cash and Cash Equivalents as of the last day of such Fiscal Quarter, plus (c) the GAAP book value of land holdings as of the  last  day  of  such  Fiscal  Quarter,  plus  (d)  the  GAAP  book  value  of  the  actual  funded  portion  of Construction-in-Progress  as  of  the  last  day  of  such  Fiscal  Quarter,  plus  (e)  the  GAAP  book  value  of Unencumbered Mortgage Receivables as of the last  day of such Fiscal Quarter, plus (f) the Ownership Share of any Consolidated Party of items (a) through (e) above attributable to Unconsolidated Affiliates  as of the last day of such Fiscal Quarter; subject at all times, however, to the provisions of Section 8.6(j).        “Treasury Management Agreement” means any agreement governing the provision of treasury or cash  management  services,  including  deposit  accounts,  funds  transfer,  automated  clearinghouse, commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services.        “Treasury Management Bank” means (a) any Person that is a Lender or an Affiliate of a Lender at the time that it becomes a party to a Treasury Management Agreement with any Credit Party and (b) any Lender  on  the  Effective  Date  or  Affiliate  of  such  Lender  that  is  a  party  to  a  Treasury  Management Agreement with any Credit Party in existence on the Effective Date.        “Type of Loan” means a Base Rate Loan or a LIBOR Loan.        “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in the State of New York (or any other applicable jurisdiction, as the context may require).        “Unconsolidated Affiliate” means any corporation, partnership, association, joint venture or other entity in each case which is not a Consolidated Party and in which a Consolidated Party owns, directly or indirectly, any Capital Stock.        “Unencumbered Debt Service Coverage Ratio”  means, as of any  date  of determination, for the applicable Calculation Period, the ratio, as calculated by Borrower and approved by Administrative Agent in its sole but reasonable discretion, of (a) the aggregate sum of Adjusted NOI for the Unencumbered Pool                                         35 

 

Properties to (b) the actual Consolidated Unsecured Interest Charges payable under the Consolidated Total Unsecured Indebtedness during such applicable Calculation Period.        “Unencumbered Mortgage Receivables” means, with respect to any Person, Mortgage Receivables  owned or held by such Person that are not pledged as collateral for, or otherwise subject to a Lien as security  for, any Indebtedness.         “Unencumbered Pool Property” means a Real Estate Asset which, as of any date of determination,  is  included  as  an  “Unencumbered  Pool  Property”  on  the  most  recent  Borrowing  Base  Certificate  and  satisfies all of the following requirements:         (a)  such Real Estate Asset (a) is one hundred percent (100%) (i) owned in fee simple or (ii)  leased pursuant to an Eligible Ground Lease by (x) the Borrower or (y) an Unencumbered Property Owner  that  is  (1)  a  Domestic  Subsidiary  and  (2)  a  Wholly-Owned  Subsidiary  or  Joint  Venture  Entity  of  the  Borrower and (b) is located in a state in the United States or the District of Columbia;         (b)   such Real Estate Asset is not subject to any Lien (other than a Permitted Lien (with the  exception of a Permitted Lien described in Section 8.2(l))) or any Negative Pledge (other than pursuant to  an Eligible Ground Lease);         (c)  such Real Estate Asset is free of all material mechanical and structural defects, or other  adverse matters except for defects, conditions or matters individually or collectively which are not material  to the profitable operation of such Real Estate Asset;         (d)  such Real Estate Asset is a Healthcare Facility that has been fully developed, is operational  and is well located within a primary or secondary market and is maintaining a stable current income;         (e)   to the extent managed by a third-party property manager, the applicable property manager  with  respect  to  such  Real  Estate  Asset  is  an  Approved  Manager,  and  such  Real  Estate  Asset  is  being  managed  pursuant  to  a  management  agreement  with  such  Approved  Manager  in  form  and  substance  reasonably acceptable to the Administrative Agent;         (f)  no principal or interest payment, payments of real property taxes (except taxes which are  being contested in good faith and for which adequate reserves have been established in accordance with  GAAP) or payments of premiums on insurance policies payable to the applicable Unencumbered Property  Owner with respect to such Real Estate Asset is past due beyond the applicable grace period with respect  thereto, if any;         (g)  no required rental payment from any tenant under a Material Lease with respect to such  Real Estate Asset is past due more than sixty (60) days beyond the applicable grace period with respect  thereto, if any;         (h)  no Tenant under any Material Lease with respect to such Real Estate Asset is then subject  to a Bankruptcy Event;         (i)  no  material  event  of  default  (after  the  expiration  of  any  applicable  notice  and/or  cure  period) has occurred and is then continuing under any Material Lease applicable to such Real Estate Asset;         (j)  no  condemnation  or  condemnation  proceeding  shall  have  been  instituted  (and  remain  undismissed for a period of ninety (90) consecutive days), in each case, with respect to a material portion                                          36 

 

of the Real Estate Asset which would impair in any material manner the continued operations of such Real Estate Asset;        (k)   no material casualty event shall have occurred with respect to the improvements located on such Real Estate Asset which is not able to be fully remediated with available insurance proceeds and/or funds the Borrower or the applicable Unencumbered Property Owner has put into escrow;        (l)   no  Hazardous  Materials  are  located  on  or  under  such  Real  Estate  Asset  and  no  other environmental  conditions  exist  in  connection  with  such  Real  Estate  Asset  which  constitute  a  material violation of any Environmental Law;        (m)    such Real Estate Asset, as of such date of determination, shall satisfy the Unencumbered Pool Property Specified Tenant Lease Requirements; and        (n)   Borrower has proposed such Real Estate Asset to the Administrative Agent and Lenders in writing and has provided the Administrative Agent a new Unencumbered Pool Report showing, on a pro forma  basis,  the  effect  on  the  Unencumbered  Pool  of  the  addition  of  such  Real  Estate  Asset  to  the Unencumbered Pool and such other documentation as may be reasonably required by this Agreement.        “Unencumbered Pool Property Specified Tenant Lease Requirements” means, as of any date of  determination, with respect to each Unencumbered Pool Property (or any Real Estate Asset proposed by  Borrower to be added as an Unencumbered Pool Property hereunder), which is either (i) a long term acute  care hospital facility or (ii) a rehabilitation facility, at the time such Real Estate Asset is being added as an  Unencumbered  Pool  Property  (whether  on  the  Effective  Date  or  under  Section  8.17  hereof),  the  Rent  Coverage Ratio shall be greater than or equal to 1.50 to 1.00.         “Unencumbered Pool Property Value” means, as of any date of determination with respect to any  Unencumbered Pool Property, the value of the subject Real Estate Asset based upon a valuation determined,  for the applicable Calculation Period, (a) for the first eighteen (18) months following the acquisition by the  Borrower  or  any  Subsidiary  of  such  Real  Estate  Asset,  such  value  based  upon  a  valuation  which  is  determined by using the un-depreciated book value cost in accordance with GAAP, and (b) thereafter by  dividing (x) Adjusted NOI by (y) the applicable Capitalization Rate based on the type of Real Estate Asset  during such applicable Calculation Period, as determined by Borrower (subject to any restatement of or  other adjustment to the  financial statements  of the Borrower or for any other reason) and approved by  Administrative Agent from time to time in its sole but reasonable discretion.         “Unencumbered Property Owner” means each Person that owns a Real Estate Asset which is or is  proposed to be an Unencumbered Pool Property and which is (1) a Domestic Subsidiary and (2) a Wholly-  Owned Subsidiary of the Borrower.         “Unimproved Land” means any Real Estate Asset consisting solely of unimproved land on which  no construction or general development activity has commenced, but which is zoned for its intended use  and is otherwise suitable for future development as a Healthcare Facility; provided, the term “Unimproved  Land” shall not include any pad, out-parcel or similar separate parcel included in or adjacent to and part of  a larger development of real property comprising any other Real Estate Asset (unless such other Real Estate  Asset is Unimproved Land).         “United States” or “U.S.” means the United States of America.         “Unsecured  Indebtedness”  means,  for  any Person,  any  Indebtedness  of such  Person  that  is  not  secured by a Lien.                                          37 

 

       “U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30)  of the Internal Revenue Code.         “U.S. Tax Compliance Certificate” means as defined in Section 3.3(f).         “Wholly-Owned Subsidiary” means, with respect to any direct or indirect Subsidiary of any Person,  that  one  hundred  percent  (100%)  of  the  Equity  Interests  with  ordinary  voting  power  issued  by  such  Subsidiary  (other  than  directors’  qualifying  shares  and  investments  by  foreign  nationals  mandated  by  Applicable Laws) is beneficially owned, directly or indirectly, by such Person.         “Withholding Agent” means any Credit Party and the Administrative Agent.         “Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the  write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In  Legislation  for  the  applicable  EEA  Member  Country,  which  writedown  and  conversion  powers  are  described in the EU Bail-In Legislation Schedule.         Section 1.2 Accounting Terms.         (a)  Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP.  Financial statements and other information required to be delivered by the Borrower to the Lenders pursuant to clauses (a), (b), (c) and (d)  of Section 7.1 shall be prepared in accordance with GAAP as in effect at the time of such preparation.  If  at any time any change in GAAP or in the consistent application thereof would affect the computation of  any financial covenant or requirement set forth in any Credit Document, and either the Borrower or the  Required Lenders shall object in writing to determining compliance based on such change, then the Lenders  and Borrower shall negotiate in good faith to amend such financial covenant, requirement or applicable  defined terms to preserve the original intent thereof in light of such change to GAAP, provided that, until  so amended such computations shall continue to be made on a basis consistent with the most recent financial  statements delivered pursuant to clauses (a), (b), (c) and (d) of Section 7.1 as to which no such objection  has been made.  Except as expressly provided herein, and notwithstanding any accounting change after the  Effective  Date  that  would  require  lease  obligations  that  would  be  treated  as  operating  leases  as  of  the  Effective  Date  to  be  classified  and  accounted  for  as  Capital  Leases  or  otherwise  reflected  on  the  consolidated balance sheet of the Parent and its Subsidiaries, for the purposes of determining compliance  with any covenant contained herein, such obligations shall be treated in the same manner as operating leases  are treated as of the Effective Date.         (b)  FASB  ASC  825  and  FASB  ASC  470-20.   Notwithstanding  the  above,  for  purposes  of  determining compliance with any covenant (including the computation of any financial covenant) contained  herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at one hundred  percent (100%) of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB  ASC 470-20 on financial liabilities shall be disregarded.         Section 1.3 Rules of Interpretation.               (a)   The definitions of terms herein shall apply equally to the singular and plural forms        of  the  terms  defined.   Whenever  the  context  may  require,  any  pronoun  shall  include  the        corresponding  masculine,  feminine  and  neuter  forms.   The  words  “include”,  “includes”  and        “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will”        shall be construed to have the same meaning and effect as the word “shall”.  Unless the context        requires  otherwise,  (i)  any  definition  of  or  reference  to  any  agreement,  instrument  or  other                                          38 

 

document shall be construed as referring to such agreement, instrument or other document as from time to time amended,  supplemented or otherwise  modified (subject  to any restrictions on such amendments, supplements or modifications set forth herein or in any other Credit Document), (ii) any  reference  herein  to  any  Person  shall  be  construed  to  include  such  Person’s  successors  and permitted assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Credit  Document, shall be construed to refer to such Credit Document in its entirety and not to any particular provision thereof,  (iv) all references in a Credit Document to Sections,  Exhibits,  Appendices  and  Schedules  shall  be  construed  to  refer  to  Sections  of,  and Exhibits, Appendices and Schedules to, the Credit Document in which such references appear, (v) any  reference  to  any  law  or  regulation  shall,  unless  otherwise  specified,  refer  to  such  law  or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property”  shall  be  construed  to  have  the  same  meaning  and  effect  and  to refer  to  any  and  all tangible  and  intangible  assets  and  properties,  including  cash,  securities,  accounts  and  contract rights.         (b)   The terms lease and license shall include sub-lease and sub-license.         (c)   All terms not specifically defined herein or by GAAP, which terms are defined in  the UCC, shall have the meanings assigned to them in the UCC of the relevant jurisdiction, with  the term “instrument” being that defined under Article 9 of the UCC of such jurisdiction.         (d)   Unless otherwise expressly indicated, in the computation of periods of time from  a specified date to a later specified date, the word “from” means “from and including”, the words  “to” and “until” each mean “to but excluding”, and the word “through” means “to and including”.         (e)   To the extent that any of the representations and warranties contained in Section 6  under this Agreement or in any of the other Credit Documents is qualified by “Material Adverse  Effect”, the qualifier “in all material respects” contained in Section 5.2(c) and the qualifier “in any  material respect” contained in Section 9.1(d) shall not apply.         (f)   Whenever the phrase “to the knowledge of” or words of similar import relating to  the knowledge of a Person are used herein or in any other Credit Document, such phrase shall mean  and refer to the actual knowledge of the Authorized Officers of such Person.         (g)   This  Agreement  and  the  other  Credit  Documents  are  the  result  of  negotiation  among, and have been reviewed by counsel to, among others, the Administrative Agent and the  Credit Parties, and are the product of discussions and negotiations among all parties.  Accordingly,  this  Agreement  and  the  other  Credit  Documents  are  not  intended  to  be  construed  against  the  Administrative Agent or any of the Lenders merely on account of the Administrative Agent’s or  any Lender’s involvement in the preparation of such documents.         (h)   Unless otherwise indicated, all references to a specific time shall be construed to  Eastern Standard Time or Eastern Daylight Savings Time, as the case may be.  Unless otherwise  expressly provided herein, all references to dollar amounts and “$” shall mean Dollars.         (i)   Unless  otherwise specified  herein,  the amount  of a Letter of Credit at any time  shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving  effect to any permanent reduction in the stated amount of such Letter of Credit pursuant to the terms  of such Letter of Credit); provided, however, that with respect to any Letter of Credit that, by its  terms  or  the  terms  of  any  letter  of  credit  application  or  other  issuer  document  related  thereto,  provides for  one  or  more automatic  increases in the stated amount thereof,  the amount of such                                   39 

 

Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.              Section 2   LOANS AND LETTERS OF CREDIT   Section 2.1 Revolving Loans and the Term Loan.         (a)   Revolving Loans.  During the Revolving Commitment Period, subject to the terms  and  conditions  hereof,  each  Revolving  Lender  severally  agrees  to  make  revolving  loans  denominated in U.S. Dollars (each such loan, a “Revolving Loan”) to the Borrower in an aggregate  amount up to but not exceeding such Revolving Lender’s Revolving Commitment; provided, that  after giving effect to the making of any Revolving Loan, in no event shall the Outstanding Amount  of Revolving Obligations exceed the lesser of (i) the Aggregate Revolving Commitments, and (ii)  the Borrowing Base as of such date.  Amounts borrowed pursuant to this Section 2.1(a) may be  repaid and reborrowed without premium or penalty (subject to Section 3.1(c)) during the Revolving  Commitment  Period.  The Revolving Loans may consist of Base Rate Loans, Adjusted LIBOR  Rate Loans, or a combination thereof,  as the  Borrower may request.  Each Revolving Lender’s  Revolving  Commitment  shall  expire  on  the  Revolving  Commitment  Termination  Date  and  all  Revolving Loans and all other amounts owed hereunder with respect to the Revolving Loans and  the Revolving Commitments shall be paid in full no later than such date.         (b)   Mechanics for Revolving Loans.               (i)   Except pursuant to Section 2.2(b)(iii), all Revolving Loans shall be made        in an aggregate minimum amount of $500,000 and integral multiples of $100,000 in excess        of that amount.               (ii)  Whenever  the  Borrower  desires  that  the  Revolving  Lenders  make  a        Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed        and delivered Funding Notice no later than (x) 1:00 p.m. at least three (3) Business Days        in advance of the proposed Credit Date in the case of an Adjusted LIBOR Rate Loan and        (y) 1:00 p.m. at least one (1) Business Day in advance of the proposed Credit Date in the        case of a Loan that is a Base Rate Loan.  Except as otherwise provided herein, any Funding        Notice for any Loans that are Adjusted LIBOR Rate Loans shall be irrevocable on and after        the related Interest Rate Determination Date, and the Borrower shall be bound to make a        borrowing in accordance therewith.               (iii) Notice  of receipt of  each  Funding  Notice  in  respect  of  each  Revolving        Loan,  together  with  the  amount  of  each  Revolving  Lender’s  Revolving  Commitment        Percentage thereof, respectively, if any, together with the applicable interest rate, shall be        provided  by  the  Administrative  Agent  to  each  applicable  Revolving  Lender  with        reasonable promptness, but (provided the Administrative Agent shall have received such        notice by 1:00 p.m.) not later than 4:00 p.m. on the same day as the Administrative Agent’s        receipt of such notice from the Borrower.               (iv)  Each Revolving Lender shall make its Revolving Commitment Percentage        of the requested Revolving Loan available to the Administrative Agent not later than 11:00        a.m. on the applicable Credit Date by wire transfer of same day funds in Dollars, at the        Administrative Agent’s Principal Office.  Except as provided herein, upon satisfaction or        waiver of the applicable conditions precedent specified herein, the Administrative Agent                                   40 

 

      shall  make  the  proceeds  of  such  Credit  Extension  available  to  the  Borrower  on  the       applicable Credit Date by causing an amount of same day funds in Dollars equal to the       proceeds of all Loans received by the Administrative Agent in connection with the Credit       Extension from the Revolving Lenders to be credited to the account of the Borrower at the       Administrative Agent’s Principal Office  or such other account  as may be  designated in       writing to the Administrative Agent by the Borrower.        (c)   Term Loan.  Subject to the terms and conditions set forth herein, each Term Lender severally  agrees  to  make  a  loan  (collectively,  the  “Term  Loan”)  in  the  amount  of  such  Term Lender’s Term Commitment to the Borrower, which Term Loan shall be made in a single drawing by the Borrower, on the Effective Date.  Principal amounts repaid on the Term Loan may not be reborrowed.  Section 2.2 Swingline Loans.        (a)   Swingline Loans Commitments.  During the Revolving Commitment Period and subject to the terms and conditions hereof, the Swingline Lender may, in its sole discretion, make Swingline Loans to the Borrower in the aggregate amount up to but not exceeding the Swingline Sublimit; provided, that after giving effect to the making of any Swingline Loan, in no event shall the  Outstanding  Amount  of  the  Revolving  Obligations  exceed  the  lesser  of  (i)  the  Revolving Commitments  then  in  effect,  and (ii) the Borrowing  Base as of such  date.  Amounts  borrowed pursuant  to this  Section  2.2  may  be  repaid  and  reborrowed  during  the  Revolving  Commitment Period.   The  Swingline  Lender’s  Revolving  Commitment  shall  expire  on  the  Revolving Commitment Termination Date, all Swingline Loans and all other amounts owed hereunder with respect to the Swingline Loans and the Revolving Commitments shall be paid in full no later than such date, and no Swingline Loan shall be outstanding for more than ten (10) consecutive Business Days without the Swingline Lender’s express written consent.        (b)   Borrowing Mechanics for Swingline Loans.              (i)   Whenever  the  Borrower  desires  that  the  Swingline  Lender  make  a       Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice       no later than 11:00 a.m. on the proposed Credit Date.              (ii)  The  Swingline  Lender  shall  make  the  amount  of  its  Swingline  Loan       available to the Administrative Agent not later than 3:00 p.m. on the applicable Credit Date       by  wire  transfer  of  same  day  funds  in  Dollars, at  the  Administrative  Agent’s  Principal       Office.  Except as provided herein, upon satisfaction or waiver of the conditions precedent       specified  herein,  the  Administrative  Agent  shall  make  the  proceeds  of  such  Swingline       Loans available to the Borrower on the applicable Credit Date by causing an amount of       same day funds in Dollars equal to the proceeds of all such Swingline Loans received by       the Administrative Agent from the Swingline Lender to be credited to the account of the       Borrower at the Administrative Agent’s Principal Office, or to such other account as may       be designated in writing to the Administrative Agent by the Borrower.              (iii) With  respect  to  any  Swingline  Loans  which  have  not  been  voluntarily       prepaid by the Borrower pursuant to Section 2.11, the Swingline Lender may at any time       in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the       Borrower), no later than 11:00 a.m. on the day of the proposed Credit Date, a notice (which       shall be deemed to be a Funding Notice given by a Borrower) requesting that each Lender       holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the                                  41 

 

Borrower on such Credit Date in an amount equal to the amount of such Swingline Loans (the “Refunded Swingline Loans”) outstanding on the date such notice is given which the Swingline  Lender  requests  Revolving  Lenders  to  prepay.   Anything  contained  in  this Agreement  to  the  contrary  notwithstanding,  (1)  the  proceeds  of  such  Revolving  Loans made  by  the  Revolving  Lenders  other  than  the  Swingline  Lender  shall  be  immediately delivered by the Administrative Agent to the Swingline Lender (and not to the Borrower) and applied to repay a corresponding portion of the Refunded Swingline Loans and (2) on the day such Revolving Loans are made, the Swingline Lender’s Revolving Commitment Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of the Swingline Loans  deemed to be so paid shall no longer be outstanding as Swingline Loans and shall no longer be due under the Swingline Note of the Swingline Lender but shall instead constitute part of the Swingline Lender’s outstanding Revolving Loans to the Borrower and shall be due under the Revolving Loan Note issued by the Borrower to the Swingline  Lender.   The  Borrower  hereby  authorizes  the  Administrative  Agent  and  the Swingline Lender to charge the Borrower’s accounts with the Administrative Agent and the  Swingline  Lender  (up  to  the  amount  available  in  each  such  account)  in  order  to immediately pay the Swingline Lender the amount of the Refunded Swingline Loans to the extent of the proceeds of such Revolving Loans made by the Revolving Lenders, including the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay in full the Refunded Swingline Loans.  If any portion of any such amount paid (or deemed to be paid) to the Swingline Lender should be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy,  by assignment  for the benefit  of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Revolving Lenders in the manner contemplated by Section 2.14.        (iv)  If  for  any  reason  Revolving  Loans  are  not  made  pursuant  to  Section 2.2(b)(iii) in an amount sufficient to repay any amounts owed to the Swingline Lender in respect  of  any  outstanding  Swingline  Loans  on  or  before  the  third  Business  Day  after demand for payment thereof by the Swingline Lender, each Lender holding a Revolving Commitment shall be deemed to, and hereby agrees to, have purchased a participation in such outstanding Swingline Loans, and in an amount equal to its Revolving Commitment Percentage of the applicable unpaid amount together with accrued interest thereon.  On the Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. on the following Business Day if such notice is provided after 2:00 p.m.), each Lender holding a Revolving  Commitment  shall  deliver  to  the  Swingline  Lender  an  amount  equal  to  its respective participation in the applicable unpaid amount in same day funds at the Principal Office  of  the  Swingline  Lender.   In  order  to  evidence  such  participation  each  Lender holding  a  Revolving  Commitment  agrees  to  enter  into  a  participation  agreement  at  the request  of  the  Swingline  Lender  in  form  and  substance  reasonably  satisfactory  to  the Swingline Lender.  In the event any Lender holding a Revolving Commitment fails to make available to the Swingline Lender the amount of such Revolving Lender’s participation as provided in this paragraph, the Swingline Lender shall be entitled to recover such amount on  demand  from  such  Revolving  Lender  together  with  interest  thereon  for  three  (3) Business Days at the rate customarily used by the Swingline Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable.        (v)   Notwithstanding  anything  contained  herein  to  the  contrary,  (1)  each Revolving Lender’s obligation to make Revolving Loans for the purpose of repaying any Refunded Swingline Loans pursuant to clause (iii) above and  each Revolving Lender’s obligation  to  purchase  a  participation  in  any  unpaid  Swingline  Loans  pursuant  to  the                            42 

 

       immediately  preceding  paragraph  shall  be  absolute  and  unconditional  and  shall  not  be        affected  by  any  circumstance,  including  (A)  any  set-off,  counterclaim,  recoupment,        defense  or  other  right  which  such  Revolving  Lender  may  have  against  the  Swingline        Lender, any Credit Party or any other Person for any reason whatsoever; (B) the occurrence        or continuation of a Default or Event of Default; (C) any adverse change in the business,        operations, properties, assets, condition (financial or otherwise) or prospects of any Credit        Party; (D) any breach of this Agreement or any other Credit Document by any party thereto;        or (E) any other circumstance, happening or event whatsoever, whether or not similar to        any of the foregoing; provided that such obligations of each Revolving Lender are subject        to the condition that the Swingline Lender had not received prior notice from the Borrower        or the Required Lenders that any of the conditions under Section 5.2 to the making of the        applicable Refunded Swingline Loans or other unpaid Swingline Loans were not satisfied        at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made;        and (2) the Swingline Lender shall not be obligated to make any Swingline Loans (A) if it        has elected not to do so after the occurrence and during the continuation of a Default or        Event of Default, or (B) it does not in good faith believe that all conditions under Section        5.2 to the making of such Swingline Loan have been satisfied or waived by the Required        Lenders.  Section 2.3 Issuances of Letters of Credit and Purchase of Participations Therein.         (a)   Letters of Credit.  During the Revolving Commitment Period, subject to the terms  and conditions hereof, the Issuing Bank agrees to issue Letters of Credit  for the account of the  Borrower or any of its Subsidiaries in the aggregate amount up to but not exceeding the Letter of  Credit Sublimit; provided, (i) each Letter of Credit shall be denominated in Dollars; (ii) the stated  amount of each Letter of Credit shall not be less than $50,000 or such lesser amount as is acceptable  to the Issuing Bank; (iii) after giving  effect to such issuance,  in no event  shall the Outstanding  Amount of the Revolving Obligations exceed the lesser of (x) the Revolving Commitments then in  effect and (y) the Borrowing Base as of such date; (iv) after giving effect to such issuance, in no  event shall the Outstanding Amount of the Letter of Credit Obligations exceed the Letter of Credit  Sublimit then in effect; and (v) in no event shall any standby Letter of Credit have an expiration  date later than the earlier of (1) seven (7) days prior to the Revolving Commitment Termination  Date, and (2) the date which is one (1) year from the date of issuance of such standby Letter of  Credit.  Subject to the foregoing (other than clause (v)), the Issuing Bank may agree that a standby  Letter of Credit will automatically be extended for one or more successive periods not to exceed  one (1)  year each, unless  the Issuing Bank  elects not to  extend for any such additional period;  provided,  the Issuing Bank shall  not  extend any such Letter of Credit  if it has received  written  notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must  elect to allow such extension; provided, further, in the event that any Revolving Lender is at such  time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory to the  Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate the  Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender (after giving effect to  Section 2.16(a)(iv) and any Cash Collateral provided by the Defaulting Lender), including by Cash  Collateralizing such Defaulting Lender’s Revolving Commitment Percentage of the Outstanding  Amount  of  the  Letter  of  Credit  Obligations  in  a  manner  reasonably  satisfactory  to  the  Administrative Agent, the Issuing Bank shall not be obligated to issue or extend any Letter of Credit  hereunder.  The Issuing Bank may send a Letter of Credit or conduct any communication to or from  the beneficiary via the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”)  message or overnight courier, or any other commercially reasonable means of communicating with  a beneficiary.                                    43 

 

      (b)   Notice of Issuance.  Whenever the Borrower desires the issuance of a Letter of Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice no later than 1:00 p.m. at least three (3) Business Days or such shorter period as may be agreed to by the Issuing Bank in any particular instance, in advance of the proposed date of issuance.  Upon satisfaction or waiver of the conditions set forth in Section 5.2, an Issuing Bank shall issue the requested Letter of Credit  only  in  accordance  with  the  Issuing  Bank’s  standard  operating  procedures.   Upon  the issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing Bank shall promptly notify the Administrative Agent and each Revolving Lender of such issuance, which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification to a Letter of Credit and the amount of such Revolving Lender’s respective participation in such Letter of Credit pursuant to Section 2.3(e).        (c)   Responsibility  of  Issuing  Bank  With  Respect  to  Requests  for  Drawings  and Payments.   In  determining  whether  to  honor  any  drawing  under  any  Letter  of  Credit  by  the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit.  As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such Letters of Credit.  In furtherance and not in limitation of the foregoing, the Issuing Bank shall not be  responsible for:  (i)  the  form,  validity  or  invalidity,  sufficiency  or  insufficiency,  accuracy  or inaccuracy,  genuineness  (including  if  fraudulent  or  forged)  or  legal  effect  of  any  document submitted by any party in connection with the application for and issuance of any such Letter of Credit; (ii) the validity or invalidity, effectiveness or ineffectiveness or sufficiency or insufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part; (iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect  or impair, or prevent the vesting of, the Issuing Bank’s rights or powers hereunder. Without  limiting  the  foregoing  and  in  furtherance  thereof,  any  action  taken  or  omitted  by  the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to any Credit Party.  Notwithstanding anything to the contrary contained in this Section 2.3(c), the Borrower shall retain any and all rights it may have against the Issuing Bank for any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order.        (d)   Reimbursement  by  the  Borrower  of  Amounts  Drawn  or  Paid  Under  Letters  of Credit.  In the event an Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent, and the  Borrower shall reimburse the Issuing Bank on or before the Business Day immediately following the date on which such drawing is honored (the “Reimbursement Date”) in an amount in Dollars and in same day funds  equal to the amount of such honored drawing; provided, anything contained herein to the contrary notwithstanding, (i) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank prior to 11:00 a.m. on the date such drawing is honored that the Borrower intends                                  44 

 

to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to the Administrative Agent requesting the Revolving Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (ii) subject to satisfaction or waiver of the conditions specified in Section  5.2, the Revolving Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base  Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly  by  the  Administrative  Agent  to  reimburse  the  Issuing  Bank  for  the  amount  of  such  honored  drawing; and provided further, if for any reason proceeds of Revolving Loans are not received by  the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored  drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day  funds equal to the excess of the amount of such honored drawing over the aggregate amount of  such Revolving Loans, if any, which are so received.  Nothing in this Section 2.3(d) shall be deemed  to relieve any Revolving Lender from its obligation to make Revolving Loans on the terms and  conditions set forth herein, and the Borrower shall retain any and all rights it may have against any  Revolving Lender resulting from the failure of such Revolving Lender to make such Revolving  Loans under this Section 2.3(d).         (e)   Revolving Lenders’ Purchase of Participations in Letters of Credit.  Immediately  upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be  deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a  participation in such Letter of Credit and any drawings honored thereunder in an amount equal to  such  Revolving  Lender’s  Revolving  Commitment  Percentage  (with  respect  to  the  Revolving  Commitments) of the maximum amount which is or at any time may become available to be drawn  thereunder.  In the event that the Borrower shall fail for any reason to reimburse an Issuing Bank  as provided in Section 2.3(d), the Issuing Bank shall promptly notify each Revolving Lender of the  unreimbursed  amount  of  such  honored  drawing  and  of  such  Revolving  Lender’s  respective  participation therein based on such Revolving Lender’s Revolving Commitment Percentage.  Each  Revolving  Lender  shall  make  available  to  the  Issuing  Bank  an  amount  equal  to  its  respective  participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such  notice, not later than 12:00 p.m. on the first Business Day (under the laws of the jurisdiction in  which such office of the Issuing Bank is located) after the date notified by the Issuing Bank.  In the  event that any Revolving Lender fails to make available to the Issuing Bank on such Business Day  the amount of such Revolving Lender’s participation in such Letter of Credit as provided in this  Section 2.3(e), the Issuing Bank shall be entitled to recover such amount  on demand from such  Revolving Lender together with interest thereon for three (3) Business Days at the rate customarily  used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate.  Nothing in this Section 2.3(e) shall be deemed to prejudice the right of any Revolving Lender to  recover  from  the  Issuing  Bank  any  amounts  made  available  by  such  Revolving  Lender  to  the  Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect  to a Letter of Credit in respect of which payment was made by such Revolving Lender constituted  gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of  competent jurisdiction in a final, non-appealable order.  In the event an Issuing Bank shall have  been reimbursed by other Revolving Lenders pursuant to this Section 2.3(e) for all or any portion  of  any  drawing  honored  by  the  Issuing  Bank  under  a  Letter  of  Credit,  the  Issuing  Bank  shall  distribute to each Revolving Lender which has paid all amounts payable by it under this Section  2.3(e)  with  respect  to  such  honored  drawing  such  Revolving  Lender’s  Revolving  Commitment  Percentage  of  all  payments  subsequently  received  by  the  Issuing  Bank  from  the  Borrower  in  reimbursement of such honored drawing when such payments are received.  Any such distribution  shall be made to a Revolving Lender at its primary address set forth below its name on Appendix  B or at such other address as such Revolving Lender may request.                                   45 

 

      (f)   Obligations Absolute.  The obligation of the Borrower to reimburse the Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans  made  by  the  Revolving  Lenders  pursuant  to  Section  2.3(d)  and  the  obligations  of  the Revolving Lenders under Section 2.3(e) shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances: (i) any lack of validity or enforceability of any Letter of Credit; (ii) the existence of any claim, set-off, defense (other than that such drawing has been repaid) or other right which the Borrower or any Revolving Lender may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee  may be acting), the Issuing Bank, a Revolving Lender or any other Person or, in the case of a Revolving Lender, against the Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or any of its Subsidiaries and the beneficiary for which any Letter of Credit was procured); (iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement  therein being untrue or inaccurate in any respect; (iv) payment  by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does not substantially comply with the terms of such Letter of Credit; (v) any adverse change in the business,  operations, properties,  assets, or financial condition  of the  Borrower  or any of its Subsidiaries; (vi) any breach hereof or any other Credit Document by any party thereto; (vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or (viii) the fact that an Event of Default or a Default shall have occurred and be continuing; provided, in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall not have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question, as determined by a court of competent jurisdiction in a final, non-appealable order.        (g)   Indemnification.  Without duplication of any obligation of the Credit Parties under Section 11.2, in addition to amounts payable as provided herein, each of the Credit Parties hereby agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank from  and  against  any  and  all  claims,  demands,  liabilities,  damages,  losses,  costs,  charges  and expenses (including reasonable and documented out-of-pocket fees, expenses and disbursements of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of (i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of (1) the gross negligence  or  willful  misconduct  of  the  Issuing  Bank,  as  determined  by  a  court  of  competent jurisdiction in a final, non-appealable order, or (2) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it, or (ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act.        (h)   Applicability of ISP.  Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to such Letter of Credit.        (i)   Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit issued  or  outstanding hereunder  is  in  support  of  any  obligations  of,  or  is  for  the  account  of,  a Subsidiary  of  the  Borrower,  the  Borrower  shall  be  obligated  to  reimburse  the  Issuing  Bank hereunder  for  any  and  all  drawings  under  such  Letter  of  Credit.   The  Borrower  hereby acknowledges that the issuance of Letters of Credit for the account of the Subsidiaries inures to the benefit  of the Borrower,  and that  the Borrower’s business  derives substantial benefits from the businesses of such Subsidiaries.  Section 2.4 Pro Rata Shares; Availability of Funds.                                  46 

 

      (a)   Pro Rata Shares.  All Loans shall be made, and all participations purchased, by the Lenders simultaneously and proportionately to their respective pro rata shares of the Loans, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender’s obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Revolving Commitment, or the portion of the aggregate outstanding principal amount of the Revolving Loans, of any Revolving Lender be increased or decreased as a result of a default by any other Revolving Lender in such other Revolving Lender’s obligation to make a Revolving Loan requested hereunder or purchase a participation required hereby.        (b)   Availability of Funds.              (i)   Funding by Lenders; Presumption by Administrative Agent.  Unless the       Administrative Agent shall have received notice from a Lender prior to the proposed date       of any Borrowing (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00       noon  on  the  date  of  such  Borrowing)  that  such  Lender  will  not  make  available  to  the       Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent       may assume that such Lender has made such share available on such date in accordance       with Section 2.1(b) or, in the case of a Borrowing of Base Rate Loans, that such Lender       has made such share available in accordance with and at the time required by Section 2.1(b)       and  may,  in  reliance  upon  such  assumption,  make  available  to  the  Borrower  a       corresponding amount.  In such event, if a Lender has not in fact made its share of the       applicable Borrowing available to the Administrative Agent, then the applicable Lender       and the Borrower severally agree to pay to the Administrative Agent forthwith on demand       such corresponding amount in immediately available funds with interest thereon, for each       day from and including the  date such amount  is made available to the Borrower to but       excluding the date of payment to the Administrative Agent, at (A) in the case of a payment       to be  made by such Lender, the  greater of the Federal Funds Effective Rate and a rate       determined  by  the  Administrative  Agent  in  accordance  with  banking  industry  rules  on       interbank compensation and (B) in the case of a payment to be made by the Borrower, the       interest  rate  applicable  to  Base  Rate  Loans,  plus,  in  either  case,  any  administrative,       processing or similar fees customarily charged by the Administrative Agent in connection       therewith.  If the Borrower and such Lender shall pay such interest to the Administrative       Agent  for  the  same  or  an  overlapping  period,  the  Administrative  Agent  shall  promptly       remit to the Borrower the amount of such interest paid by the Borrower for such period.  If       such Lender pays its share of the applicable Borrowing to the Administrative Agent, then       the amount so paid shall constitute such Lender’s Loan included in such Borrowing.  Any       payment by the Borrower shall be without prejudice to any claim the Borrower may have       against a Lender that shall have failed to make such payment to the Administrative Agent.              (ii)  Payments  by  the  Borrower;  Presumptions  by  Administrative  Agent.       Unless the Administrative Agent shall have received notice from the Borrower prior to the       date  on  which  any  payment  is  due  to  the  Administrative  Agent  for  the  account  of  the       Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the       Administrative Agent may assume that the Borrower has made such payment on such date       in  accordance  herewith  and  may,  in  reliance  upon  such  assumption,  distribute  to  the       Lenders or each applicable Issuing Bank, as the case may be, the amount due.  In such       event, if the Borrower has not in fact made such payment, then each of the Lenders or each       applicable Issuing Bank, as the case may be, severally agrees to repay to the Administrative       Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank,       in immediately available funds with interest thereon, for each day from and including the       date  such  amount  is  distributed  to  it  to  but  excluding  the  date  of  payment  to  the                                  47 

 

            Administrative  Agent,  at  the  greater  of  the  Federal  Funds  Effective  Rate  and  a  rate             determined  by  the  Administrative  Agent  in  accordance  with  banking  industry  rules  on             interbank compensation.  Notices given by the Administrative Agent under this subsection (b) shall be conclusive absent manifest error.        Section 2.5 Evidence of Debt; Register; Lenders’ Books and Records; Notes.              (a)   Lenders’ Evidence of Debt.  Each Lender shall maintain on its internal records an       account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such       Lender, including the amounts of the Loans  made by it and each repayment and prepayment in       respect thereof.  Any such recordation shall be conclusive and binding on the Borrower, absent       manifest  error;  provided,  that  the  failure  to  make  any  such  recordation,  or  any  error  in  such       recordation, shall not affect any Lender’s Commitment or the Borrower’s obligations in respect of       any applicable Loans; and provided, further, in the event of any inconsistency between the Register       and  any  Lender’s  records,  the  recordations  in  the  Register  shall  govern  in  the  absence  of       demonstrable error therein.              (b)   Notes.  The Borrower shall execute and deliver to (i) each Lender on the Effective       Date, (ii) each Person who is a permitted assignee of such Lender pursuant to Section 11.5, and (iii)       each Person who becomes a Lender in accordance with Section 2.19, in each case to the extent       requested by such Person, a Note or  Notes to  evidence such Person’s portion of the Revolving       Loans or Term Loan, as applicable.        Section 2.6 Scheduled Principal Payments.              (a)   Revolving Loans.  The principal amount of Revolving Loans is due and payable       in full on the Revolving Maturity Date.              (b)   Swingline Loans.  The principal amount of the Swingline Loans is due and payable       in  full  on  the  earlier to  occur  of  (i)  the  date  of  demand  by  the  Swingline  Lender  and  (ii)  the      Revolving Maturity Date.              (c)   Term Loan.  The principal amount of the Term Loan is due and payable in full on       the Term Maturity Date.        Section 2.7 Interest on Loans.              (a)   Except as otherwise set forth herein, each Loan shall bear interest on the unpaid       principal  amount  thereof  from  the  date  made  through  repayment  (whether  by  acceleration  or       otherwise) thereof as follows:                    (i)   in the case of Revolving Loans:                          (A)   if a Base Rate Loan (including a Base Rate Loan referencing the                   LIBOR  Index  Rate),  the  Base  Rate  plus  the  Applicable  Margin  for  Revolving                   Loans that are Base Rate Loans; or                          (B)   if an Adjusted LIBOR Rate Loan, the Adjusted LIBOR Rate plus                   the Applicable Margin for Revolving Loans that are Adjusted LIBOR Rate Loans;                                         48 

 

           (ii)   in the case of Swingline Loans, at the Swingline Rate; and             (iii)  in the case of the Term Loan:                    (A)   if the then outstanding portion of the Term Loan is a Base Rate             Loan (including a Base Rate Loan referencing the LIBOR Index Rate), the Base             Rate plus the Applicable Margin for Term Loans that are Base Rate Loans; or                    (B)   if the then outstanding portion of the Term Loan is an Adjusted             LIBOR Rate Loan, the Adjusted LIBOR Rate plus the Applicable Margin for Term             Loans that are Adjusted LIBOR Rate Loans.       (b)    The basis for determining the rate of interest with respect to any Loan (except a Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until converted into a Revolving Loan pursuant to the terms and conditions hereof), and the Interest Period  with respect to any  Adjusted LIBOR Rate Loan,  shall be selected by the  Borrower and notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or Conversion/Continuation Notice, as the case may be.  If on any day a Loan is outstanding with respect to which a Funding Notice or Conversion/Continuation Notice has not been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day (i) if such Loan is an Adjusted LIBOR Rate Loan, such Loan shall become a Base Rate Loan and (ii) if such Loan is a Base Rate Loan, such Loan shall remain a Base Rate Loan.        (c)   In  connection  with  Adjusted  LIBOR  Rate  Loans,  there  shall  be  no  more  than twelve (12) Interest Periods outstanding at any time.  In the event the Borrower fails to specify between a Base Rate Loan or an Adjusted LIBOR Rate Loan in the applicable Funding Notice or Conversion/Continuation Notice, such Loan (i) if outstanding as an Adjusted LIBOR Rate Loan, shall be automatically converted into a Base Rate Loan on the last day of the then-current Interest Period for such Loan, and (ii) if outstanding as a Base Rate Loan will remain as, or (if not then outstanding) will be  made as, a Base Rate Loan.  In the  event  the Borrower fails  to specify an Interest  Period  for  any  Adjusted  LIBOR  Rate  Loan  in  the  applicable  Funding  Notice  or Conversion/Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one (1) month.  As soon as practicable after 10:00 a.m. on each Interest Rate Determination Date and  each  Index  Rate  Determination  Date,  the  Administrative  Agent  shall  determine  (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to each of the LIBOR Loans for which an interest rate is then being determined (and for the applicable Interest Period in the case of Adjusted LIBOR Rate Loans) and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.        (d)   Interest payable pursuant to this Section 2.7 shall be computed on the basis of (i) for interest at the Base Rate or the Swingline Rate, a 365-day or 366-day year, as the case may be, and (ii) for all other computations of fees and interest, a 360-day year, in each case, for the actual number of days elapsed in the period during which it accrues.  In computing interest on any Loan, the date of the making of such Loan or the first day of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted from a LIBOR Loan, the date of conversion of such LIBOR Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a LIBOR Loan, the date of conversion of such                                   49 

 

Base Rate Loan to such LIBOR Loan, as the case may be, shall be excluded; provided, if a Loan is  repaid on the same day on which it is made, one (1) day’s interest shall be paid on that Loan.         (e)   [Reserved].         (f)   Except as otherwise set forth herein, interest on each Loan shall accrue on a daily  basis and shall be payable in arrears on and to (i) each Interest Payment Date applicable to that  Loan; (ii) upon any prepayment of that Loan (other than a voluntary prepayment of a Revolving  Loan which interest shall be payable in accordance with clause (i) above), to the extent accrued on  the amount being prepaid; and (iii) at maturity, including final maturity.         (g)   The Borrower agrees to pay to the Issuing Bank, with respect to drawings honored  under any Letter of Credit issued by the Issuing Bank, interest on the amount paid by the Issuing  Bank  in  respect  of  each  such  honored  drawing  from  the  date  such  drawing  is  honored  to  but  excluding the date such amount is reimbursed by or on behalf of the Borrower at a rate equal to (i)  for  the  period  from  the  date  such  drawing  is  honored  to  but  excluding  the  applicable  Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving  Loans that are Base Rate Loans, and (ii) thereafter, a rate which is the lesser of (y) two percent  (2%)  per  annum  in  excess  of  the  rate  of  interest  otherwise  payable  hereunder  with  respect  to  Revolving Loans that are Base Rate Loans, and (z) the Highest Lawful Rate.         (h)   Interest payable pursuant to Section 2.7(g) shall be computed on the basis of a 365-  day or 366-day year, as the case may be, for the actual number of days elapsed in the period during  which it accrues, and shall be payable on demand or, if no demand is made, on the date on which  the related drawing under a Letter of Credit is reimbursed in full.  Promptly upon receipt by the  Issuing Bank of any payment of interest pursuant to Section 2.7(g), the Issuing Bank shall distribute  to each Revolving Lender, out of the interest received by the Issuing Bank in respect of the period  from the  date such  drawing is  honored to but excluding the  date  on  which the Issuing Bank  is  reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds  of  any  Revolving  Loans),  the  amount  that  such  Revolving  Lender  would  have  been  entitled  to  receive in respect of the letter of credit fee that would have been payable in respect of such Letter  of Credit for such period if no drawing had been honored under such Letter of Credit.  In the event  the Issuing Bank shall have been reimbursed by the Revolving Lenders for all or any portion of  such honored drawing, the Issuing Bank shall distribute to each Revolving Lender which has paid  all  amounts  payable  by  it  under  Section  2.3(e)  with  respect  to  such  honored  drawing  such  Revolving Lender’s Revolving Commitment  Percentage  of any interest received by  the  Issuing  Bank in respect of that portion of such honored drawing so reimbursed by the Revolving Lenders  for the period from the date on which the Issuing Bank was so reimbursed by the Revolving Lenders  to but excluding the date on  which such portion of such honored drawing is reimbursed by the  Borrower.   Section 2.8 Conversion/Continuation.         (a)   So  long  as  no  Default  or  Event  of  Default  shall  have  occurred  and  then  be  continuing or would result therefrom, the Borrower shall have the option:               (i)   to convert at any time all or any part of any Loan equal to $100,000 and        integral multiples of $50,000 in excess of that amount from one Type of Loan to another        Type of Loan;  provided,  an Adjusted  LIBOR Rate Loan  may only be converted on the        expiration of the Interest Period applicable to such Adjusted LIBOR Rate Loan unless the                                    50 

 

      Borrower  shall  pay  all  amounts  due  under  Section  2.15  in  connection  with  any  such       conversion; or              (ii)  upon  the  expiration  of  any  Interest  Period  applicable  to  any  Adjusted       LIBOR Rate Loan, to continue all or any portion of such Loan as an Adjusted LIBOR Rate       Loan.        (b)   The  Borrower  shall  deliver  a  Conversion/Continuation  Notice  to  the Administrative Agent no later than 1:00 p.m. at least three (3) Business Days in advance of the proposed  Conversion/Continuation  Date.   Except  as  otherwise  provided  herein,  a Conversion/Continuation  Notice  for  conversion  to,  or  continuation  of,  any  LIBOR  Loans  (or telephonic  notice  in  lieu  thereof)  shall  be  irrevocable  on  and  after  the  related  Interest  Rate Determination Date, and the Borrower shall be bound to effect a conversion  or continuation  in accordance therewith.  Section 2.9 Default Rate of Interest.        (a)   If any amount of principal of any Loan is not paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times  equal to the Default Rate to the fullest  extent  permitted by Applicable Laws.        (b)   If any amount (other than principal of any Loan) payable by the Borrower under any Credit Document is not paid when due (after the expiration of any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then at the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.        (c)   During  the  continuance  of  an  Event  of  Default  under  Section  9.1(f)  or  Section 9.1(g),  the  Borrower  shall  pay  interest  on  the  principal  amount  of  all  outstanding  Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.        (d)   During the continuance of an Event of Default other than an Event of Default under Section 9.1(f) or Section 9.1(g), the Borrower shall, at the request of the Required Lenders, pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws.        (e)   Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.        (f)   In the case of any Adjusted LIBOR Rate Loan, upon the expiration of the Interest Period in effect at the time the Default Rate of interest is effective, each such Adjusted LIBOR Rate Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate then  in  effect  for  Base  Rate  Loans.   Payment  or  acceptance  of  the  increased  rates  of  interest provided  for  in  this  Section  2.9  is  not  a  permitted  alternative  to  timely  payment  and  shall  not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.  Section 2.10 Fees.                                   51 

 

      (a)   [Reserved].        (b)   Facility Fee.  The Borrower shall pay to the Administrative Agent for the account of each Revolving Lender in accordance with its Revolving Commitment Percentage, a facility fee (the  “Facility  Fee”)  equal  to  the  product  of  (x)  the  applicable  Facility  Fee  Rate  based  on  the Borrower’s Investment Grade Rating as set forth in the Investment Grade Pricing Grid multiplied by (y) the actual daily amount of the Aggregate Revolving Commitments, subject to adjustments as provided in Section 2.16.  The Facility Fee shall accrue at all such times during the Revolving Commitment Period, including at any time during which one or more of the conditions in Section 5 is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March,  June, September and December, commencing with the first such date to occur after the Effective Date, and on the Revolving Commitment Termination Date; provided that (1) no Facility Fee shall accrue on the Revolving Commitment of a Defaulting Lender so long as such Revolving Lender shall be a Defaulting Lender and (2) any Facility Fee accrued with respect to the Revolving Commitment of a Defaulting Lender during the period prior to the time such Revolving Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower so long as such Revolving Lender shall be a Defaulting Lender.  As and when applicable hereunder, the Facility Fee shall be calculated quarterly in arrears, and if there is any change in the Facility Fee Rate during any quarter, the actual daily amount shall be computed and multiplied by the Facility Fee Rate separately for each period during such quarter that such Facility Fee Rate was in effect.        (c)   Letter of Credit Fees.              (i)   Commercial and Standby Letter of Credit Fees.  The Borrower shall pay       to the Administrative Agent for the account of each Revolving Lender in accordance with       its Revolving Commitment Percentage a Letter of Credit fee for each standby Letter of       Credit  equal  to  the  Applicable  Margin  for  Letters  of  Credit  multiplied  by  the  daily       maximum  amount  available  to  be  drawn  under  such  Letter  of  Credit  (collectively,  the       “Letter of Credit Fees”).  For purposes of computing the daily amount available to be drawn       under  any  Letter  of Credit,  the  amount  of  such  Letter  of  Credit  shall  be  determined  in       accordance with Section 1.3(i).  The Letter of Credit Fees shall be computed on a quarterly       basis in arrears, and shall be due and payable on the last Business Day of each March, June,       September and December, commencing with the first such date to occur after the issuance       of such Letter of Credit, on the expiration date thereof and thereafter on demand; provided       that (1) no Letter of Credit Fees shall accrue in favor of a Defaulting Lender so long as       such Revolving Lender shall be a Defaulting Lender and (2) any Letter of Credit  Fees       accrued in favor of a Defaulting Lender during the period prior to the time such Revolving       Lender became a Defaulting Lender and unpaid at such time shall not be payable by the       Borrower so long as such Revolving Lender shall be a Defaulting Lender.  If there is any       change in the Applicable Margin during any quarter, the daily maximum amount available       to be drawn under each standby Letter of Credit shall be computed and multiplied by the       Applicable Margin separately for each period  during  such  quarter that such Applicable       Margin was in effect.  Notwithstanding anything to the contrary contained herein, during       the continuance of an Event of Default under Sections 9.1(f) and (g), all Letter of Credit       Fees shall accrue at the Default Rate, and during the continuance of an Event of Default       other than an Event of Default under Sections 9.1(f) or (g), then upon the request of the       Required Revolving Lenders, all Letter of Credit Fees shall accrue at the Default Rate.              (ii)  Fronting Fee and Documentary and Processing Charges Payable to Issuing       Bank.   The  Borrower  shall  pay  directly  to  the  Issuing Bank  for  its  own  account,  on  a       quarterly basis in arrears, a fronting fee with respect to each Letter of Credit, equal to the                                  52 

 

            greater of (x) a rate per annum of 0.125% multiplied by the average daily amount available             to be drawn under such Letter of Credit and (y) $1,500.  Such fronting fee shall be due and             payable on the last Business Day of each March, June, September and December in respect             of  the  most  recently  ended  quarterly  period  (or  portion  thereof,  in  the  case  of  the  first             payment), commencing with the first such date to occur after the issuance of such Letter of             Credit, on its expiration date and thereafter on demand.  For purposes of computing the             daily amount available to be drawn under any Letter of Credit, the amount of such Letter             of Credit shall be determined in accordance with Section 1.3(i).  In addition, the Borrower             shall  pay  directly  to  the  Issuing  Bank  for  its  own  account  the  customary  issuance,             presentation,  amendment,  renewal,  negotiation  and  other  processing  fees,  and  other             standard costs and charges, of the Issuing Bank relating to letters of credit as from time to             time in effect.  Such customary fees and standard costs and charges are due and payable on             demand and are nonrefundable.              (d)   Other Fees.  The Borrower shall pay to Lead Arrangers, Co-Syndication Agents,       and the Administrative Agent, for their own respective accounts, fees in the amounts and at the       times  specified  in  the  Fee  Letter.   Such  fees  shall  be  fully  earned  when  paid  and shall  not  be       refundable for any reason whatsoever, except to the extent set forth in the Fee Letter.        Section 2.11 Prepayments/Commitment Reductions.              (a)   Voluntary Prepayments.                    (i)   Any time and from time to time, the Loans may be repaid in whole or in             part, with respect to the Revolving Loans and the Term Loan, without premium or penalty             (subject to Section 3.1):                          (A)   with  respect  to  Base  Rate  Loans  (including  Base  Rate  Loans                   referencing the LIBOR Index Rate), the Borrower may prepay any such Loans on                   any  Business  Day  in  whole  or  in  part,  in  an  aggregate  minimum  amount  of                   $250,000 and integral multiples of $100,000 in excess of that amount;                          (B)   with respect to Adjusted LIBOR Rate Loans, the Borrower may                   prepay any such Loans on any Business Day in whole or in part (together with any                   amounts  due  pursuant  to  Section  3.1(c))  in  an  aggregate  minimum  amount  of                   $250,000 and integral multiples of $100,000 in excess of that amount; and                          (C)   with respect to Swingline Loans, the Borrower may prepay any                   such Loans on any Business Day in whole or in part in any amount;                    (ii)  All such prepayments shall be made:                          (A)   upon written or telephonic notice on the date of prepayment in the                   case of Base Rate Loans or Swingline Loans; and                          (B)   upon  not  less  than  three  (3)  Business  Days’  prior  written  or                   telephonic notice in the case of Adjusted LIBOR Rate Loans;  in each case given to the Administrative Agent, or the Swingline Lender, as the case may be, by 11:00 a.m. on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for a prepayment                                         53 

 

by telefacsimile or telephone to each Revolving Lender or Term Lender, as applicable).  Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein.  Any such voluntary prepayment shall be applied as specified in Section 2.12(a).               (b)   Voluntary Revolving Commitment Reductions.                     (i)   The Borrower may, from time to time upon not less than three (3) Business              Days’ prior written or telephonic notice confirmed in writing to the Administrative Agent              (which  original  written  or  telephonic  notice  the  Administrative  Agent  will  promptly              transmit by telefacsimile or telephone to each applicable Revolving Lender), at any time              and from time to time terminate in whole or permanently reduce in part (i) the Revolving              Commitments (ratably among the Revolving Lenders in accordance with their respective              commitment percentage thereof); provided, (A) any such partial reduction of the Revolving              Commitments  shall  be  in  an  aggregate  minimum  amount  of  $5,000,000  and  integral              multiples of $1,000,000 in excess of that amount, (B) the Borrower shall not terminate or              reduce the Aggregate Revolving Commitments  if, after giving effect thereto and to any              concurrent  prepayments  hereunder,  the  aggregate  Outstanding  Amount  exceed  the              Aggregate Revolving Commitments and (C) if, after giving effect to any reduction of the              Aggregate Revolving Commitments,  the Letter of Credit Sublimit and/or the Swingline              Sublimit exceed the amount of the Aggregate Revolving Commitments, the Letter of Credit              Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by              the amount of such excess.                     (ii)  The Borrower’s notice to the Administrative Agent shall designate the date              (which shall be a Business Day) of such termination or reduction and the amount of any              partial reduction, and such termination or reduction of the Revolving Commitments shall              be effective on the date specified in the Borrower’s notice and shall reduce the Revolving              Commitments  of  each  Revolving  Lender  proportionately  to  its  Revolving  Commitment              Percentage thereof.               (c)   Mandatory Prepayments; Excess Outstanding Amounts.               If at any time (A) the Outstanding Amount of Revolving Obligations shall exceed the lesser       of (x) the Aggregate Revolving Commitments or (y) the Borrowing Base, in each case as of such       time, (B) the Outstanding Amount of Letter of Credit Obligations shall exceed the Letter of Credit       Sublimit, or (C) the Outstanding Amount of Swingline Loans shall exceed the Swingline Sublimit,       immediate prepayment will be made on or in respect of the Revolving Obligations in an amount       equal to such excess; provided, however, that, except with respect to clause (B), Letter of Credit        Obligations will not be Cash Collateralized hereunder until the Revolving Loans and Swingline        Loans have been paid in full.  If after repayment of all Revolving Obligations as provided above,        the outstanding balance of the Term Loan exceeds the Borrowing Base, immediate prepayment will        be made on or in respect of the outstanding balance of the Term Loan in an amount equal to such        excess.         Section 2.12 Application of Prepayments.               Within each Loan, prepayments will be applied first to Base Rate Loans, then to LIBOR       Loans in direct order of Interest Period maturities.  In addition:                                          54 

 

      (a)   Voluntary Prepayments.  Voluntary prepayments will be applied as specified by the Borrower.        (b)   Mandatory Prepayments.  Mandatory prepayments  under Section 2.11(c) above shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent reduction  of the aggregate Revolving Commitments, and shall be available for re-borrowing in accordance with the terms hereof and of the other Credit Documents.        (c)   Prepayments  on  the  Revolving  Obligations  will  be  paid  by  the  Administrative Agent to the Revolving Lenders ratably in accordance with their respective interests therein (except for Defaulting Lenders where their share will be applied as provided in Section 2.16(a) hereof).  Section 2.13 General Provisions Regarding Payments.        (a)   All payments  by the  Borrower of principal,  interest, fees and  other Obligations hereunder or under any other Credit Document shall be made in Dollars in immediately available funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition. The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to, debit a deposit  account  of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary in order to cause timely payment to be made to the Administrative Agent of all principal, interest and  fees  due  hereunder  or  under  any  other  Credit  Document  (subject  to  sufficient  funds  being available in its accounts for that purpose).        (b)   In the event that the Administrative Agent is unable to debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or any other Credit Document (including because insufficient funds are available  in  its  accounts  for  that  purpose),  payments  hereunder  and  under  any  other  Credit Document shall be delivered to the Administrative Agent, for the account of the Lenders, not later than 2:00 p.m. on the  date  due at the Principal Office  of the  Administrative  Agent or via wire transfer of immediately available funds to an account designated by the Administrative Agent (or at such other location as may be designated in writing by the Administrative Agent from time to time); for purposes of computing interest and fees, funds received by the Administrative  Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next Business Day.        (c)   All payments in respect of the principal amount of any Loan (other than voluntary repayments  of  Revolving  Loans)  shall  be  accompanied  by  payment  of  accrued  interest  on  the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall be applied to the payment of interest then due and payable before application to principal.        (d)   The Administrative Agent shall promptly distribute to each Lender at such address as such Lender shall indicate in writing, such Lender’s applicable pro rata share of all payments and prepayments of principal and interest due to such Lender hereunder, together with all other amounts  due  with  respect  thereto,  including  all  fees  payable  with  respect  thereto,  to  the  extent received by the Administrative Agent.        (e)   Notwithstanding the foregoing provisions hereof, if any Conversion/Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans                                  55 

 

     in lieu of its pro rata share of any Adjusted LIBOR Rate Loans, the Administrative Agent shall give      effect thereto in apportioning payments received thereafter.              (f)   Subject to the provisos set forth in the definition of “Interest Period,” whenever       any payment to be made hereunder shall be stated to be due on a day that is not a Business Day,       such payment shall be made on the next succeeding Business Day and such extension of time shall       be  included  in  the  computation  of  the  payment  of  interest  hereunder  or  of  the  Facility  Fee       hereunder, but such payment shall be deemed to have been made on the date therefor for all other       purposes hereunder.              (g)   The Administrative Agent may, but shall not be obligated to, deem any payment       by or on behalf of the Borrower hereunder that is not made in same day funds prior to 2:00 p.m. to       be a non-conforming payment.  Any such payment shall not be deemed to have been received by       the Administrative Agent until the later of (i) the time such funds become available funds, and (ii)       the applicable next Business Day.  The Administrative Agent shall give prompt telephonic notice       to  the  Borrower  and  each  applicable  Lender  (confirmed  in  writing)  if  any  payment  is       non-conforming.  Any non-conforming payment may constitute or become a Default or Event of       Default in accordance with the terms of Section 9.1(a).  Interest shall continue to accrue on any       principal as to which a non-conforming payment is made until such funds become available funds       (but in no event less than the period from the date of such payment to the next succeeding applicable       Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the       date such amount was due and payable until the date such amount is paid in full.        Section 2.14 Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans  or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount  of  principal  of  and accrued  interest  on  their  respective  Loans  and  other  amounts  owing  them; provided that:                    (i)   if  any  such  participations  are  purchased  and  all  or  any  portion  of  the             payment giving rise thereto is recovered, such participations shall be rescinded and the             purchase price restored to the extent of such recovery, without interest; and                    (ii)  the provisions of this Section shall not be construed to apply to (A) any             payment made by the Borrower pursuant to and in accordance with the express terms of             this  Agreement  (including  the  application  of  funds  arising  from  the  existence  of  a             Defaulting  Lender),  (B)  any  amounts  applied  by  the  Swingline  Lender  to  outstanding             Swingline Loans, (C) any amounts applied to Letter of Credit Obligations by the Issuing             Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral             provided under Section 2.15 or Section 2.16, or (D) any payment obtained by a Lender as             consideration  for  the  assignment  of  or  sale  of  a  participation  in  any  of  its  Loans  or             participations  in  Letter  of  Credit  Obligations,  Swingline  Loans  or  other  obligations             hereunder  to  any  assignee  or  participant,  other  than  to  the  Borrower  or  any  Subsidiary             thereof (as to which the provisions of this Section shall apply).                                         56 

 

Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law,  that any Lender acquiring a participation pursuant to the foregoing  arrangements  may exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.        Section 2.15 Cash Collateral.  At any time that there shall exist a Defaulting Lender, within one  (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a  copy  to  the  Administrative  Agent)  the  Borrower  shall  Cash  Collateralize  the  Issuing  Bank’s  Fronting  Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting  Exposure (after giving effect to Section 2.16(a)(iv) and any Cash Collateral provided by the Defaulting  Lender).              (a)    Grant  of  Security  Interest.   The  Borrower,  and  to  the  extent  provided  by  any        Defaulting  Lender,  such  Defaulting  Lender,  hereby  grants  to  the  Administrative  Agent,  for  the        benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all        such Cash Collateral as security for the Defaulting Lenders’ obligation to fund participations in        respect of Letter of Credit Obligations, to be applied pursuant to clause (b) below.  If at any time        the Administrative Agent determines that Cash Collateral is subject to any right or claim of any        Person other than the Administrative Agent and the Issuing Bank as herein provided (other than        the Permitted Liens), or that the total amount of such Cash Collateral is less than the applicable        Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or        provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate        such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).               (b)   Application.   Notwithstanding  anything  to  the  contrary  contained  in  this        Agreement, Cash Collateral provided under this Section 2.15 or Section 2.16 in respect of Letters        of  Credit  shall  be  applied  to  the  satisfaction  of  the  Defaulting  Lender’s  obligation  to  fund        participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided        by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was        so provided, prior to any other application of such property as may otherwise be provided for herein.               (c)   Termination of Requirement.  Cash Collateral (or the appropriate portion thereof)        provided to reduce the Issuing Bank’s Fronting Exposure shall no longer be required to be held as        Cash Collateral pursuant to this Section 2.15 following (i) the elimination of the applicable Fronting        Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or        (ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess        Cash Collateral; provided, however, (x) Cash Collateral furnished by or on behalf of a Credit Party        shall  not  be  released  during  the  continuance  of  a  Default  or  Event  of  Default  (and  following        application as provided in this Section 2.15 may be otherwise applied in accordance with Section        9.3) but shall be released upon the cure, termination or waiver of such Default or Event of Default        in accordance with the terms of this Agreement, and (y) the Person providing Cash Collateral and        the Issuing Bank or Swingline Lender, as applicable, may agree that Cash Collateral shall not be        released but instead held to support future anticipated Fronting Exposure or other obligations.         Section 2.16 Defaulting Lenders.               (a)   Defaulting  Lender  Adjustments.   Notwithstanding  anything  to  the  contrary        contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as        such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:                                          57 

 

     (i)    Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove  any  amendment,  waiver  or  consent  with  respect  to  this  Agreement  shall  be restricted as set forth in Section 11.4(b)(iii).        (ii)  Defaulting Lender Waterfall. Any payment of principal, interest, fees or other  amount  (other  than  fees  which  any  Defaulting  Lender  is  not  entitled  to  receive pursuant to Section 2.16(a)(iii)) received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 9 or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to Section 11.3), shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by that Defaulting Lender to the Issuing  Bank  or  the  Swingline  Lender  hereunder;  third,  if  so  determined  by  the Administrative Agent or requested by the Issuing Bank or the Swingline Lender, to be held as  Cash  Collateral  for  future  funding  obligations  of  that  Defaulting  Lender  of  any participation  in  any  Swingline  Loan  or  Letter  of  Credit;  fourth,  as  the  Borrower  may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Lender to fund Loans under this  Agreement;  sixth,  to the payment  of any amounts  owing to the Lenders,  the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the  Borrower against that  Defaulting Lender as a result  of that Defaulting Lender’s breach  of  its  obligations under this Agreement; and  eighth, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided, that, if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit  Borrowings  in  respect  of  which that  Defaulting  Lender  has  not  fully  funded  its appropriate share and (y) such Loans or Letter of Credit Borrowings were made at a time when the conditions set forth in Section 5.2 were satisfied or waived, such payment shall be applied solely to the pay the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or Letter of Credit Borrowings owed to, that Defaulting Lender.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.16(a)(ii) shall be deemed paid to (and the underlying obligations satisfied to the extent  of such payment) and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.        (iii) Certain Fees.              (A)   Such  Defaulting  Lender  shall  not  be  entitled  to  receive  any       Facility Fee, any fees with respect to Letters of Credit (except as provided in clause       (b) below) or any other fees hereunder for any period during which that Lender is       a Defaulting Lender (and the Borrower shall not be required to pay any such fee                             58 

 

           that  otherwise  would  have  been  required  to  have  been  paid  to  that  Defaulting            Lender).                    (B)   Each  Defaulting  Lender  shall  be  entitled  to  receive  Letter  of             Credit Fees for any period during which that Lender is a Defaulting Lender only             to  the  extent  allocable  to  its  Revolving  Commitment  Percentage  of  the  stated             amount of Letters of Credit for which such Lender (rather than the Borrower or             any other Credit Party) has provided Cash Collateral pursuant to Section 2.3(a),             Section 2.15 or otherwise.                    (C)   With respect to any fee not required to be paid to any Defaulting             Lender pursuant to clause (A) or (B) above, the Borrower shall (x) pay to each             Non-Defaulting Lender  that  portion  of  any  such  fee  otherwise  payable  to  such             Defaulting Lender with respect to such Defaulting Lender’s participation in Letter             of Credit Obligations or Swingline Loans that has been reallocated to such Non-             Defaulting Lender pursuant to clause (iv) below, (y) pay to the Issuing Bank and             Swingline Lender, as applicable, the amount of any such fee otherwise payable to             such Defaulting Lender to the extent allocable to the Issuing Bank’s or Swingline             Lender’s Fronting Exposure to such Defaulting Lender, and (z) not be required to             pay the remaining amount of any such fee.              (iv)  Reallocation of Participations to Reduce Fronting Exposure.  All or any       part  of  such  Defaulting  Lender’s  participation  in  Letter  of  Credit  Obligations  and       Swingline Loans  shall be reallocated among the Non-Defaulting Lenders in accordance       with  their  respective  Revolving  Commitment  Percentages  (calculated  without  regard  to       such  Defaulting  Lender’s  Revolving  Commitment)  but  only  to  the  extent  that  (x)  the       conditions set forth in Section 5.2 are satisfied at the time of such reallocation (and, unless       the  Borrower  shall  have  otherwise  notified  the  Administrative  Agent  at  such  time,  the       Borrower  shall  be  deemed  to  have  represented  and  warranted  that  such  conditions  are       satisfied at such time), and (y) such reallocation does not cause the aggregate Outstanding       Amount of Revolving Loans of such Lender together with such Lender’s participation in       Letter  of  Credit  Obligations  and  Swingline  Loans  at  such  time  to  exceed  such  Non-       Defaulting Lender’s Revolving Commitment.  No reallocation hereunder shall constitute a       waiver or release of any claim of any party hereunder against a Defaulting Lender arising       from  that  Lender  having  become  a  Defaulting  Lender,  including  any  claim  of  a  Non-       Defaulting  Lender  as  a  result  of  such  Non-Defaulting  Lender’s  increased  exposure       following such reallocation.              (v)   Cash  Collateral,  Repayment  of  Swingline  Loans.   If  the  reallocation       described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall,       without prejudice to any right or remedy available to it hereunder or under law, (x) first,       prepay Swingline Loans in an amount equal to the Swingline Lenders’ Fronting Exposure       and (y) second, Cash Collateralize the Issuing Bank’s Fronting Exposure in accordance       with the procedures set forth in Section 2.15.        (b)   Defaulting  Lender  Cure.   If  the  Borrower,  the  Administrative  Agent  and  the Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements  with  respect  to  any  Cash  Collateral),  that  Lender  will,  to  the  extent  applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as                                  59 

 

     the  Administrative  Agent  may  determine  to  be  necessary  to  cause  the  Loans  and  funded  and      unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders      in  accordance  with  the  Revolving  Commitments  (without  giving  effect  to  Section  2.16(a)(iv),       whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be       made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower       while  that  Lender  was  a  Defaulting  Lender;  and  provided,  further,  that  except  to  the  extent       otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to       Lender will constitute a waiver or release of any claim of any party hereunder arising from that       Lender’s having been a Defaulting Lender.              (c)   New Swingline Loans/Letters of Credit.  So long as any Lender is a Defaulting       Lender, no Issuing Bank shall be required to issue, extend, renew or increase any Letter of Credit       unless it is satisfied that the participations in the Letter of Credit Obligations related to any existing       Letters of Credit as well as the new, extended, renewed or increased Letter of Credit has been or       will be fully allocated among the Non-Defaulting Lenders in a manner consistent with clause (a)(iv)       above and such Defaulting Lender shall not participate therein except to the extent such Defaulting       Lender’s participation has been or will be fully Cash Collateralized in accordance with Section       2.15.              (d)   Qualified  Counterparties.   So  long  as any  Lender  is  a  Defaulting  Lender,  such       Lender shall not be a Swap Bank with respect to any Swap Contract entered into while such Lender       was a Defaulting Lender.        Section 2.17 Removal  or Replacement of Lenders.  If (a) any Lender requests  compensation under Section 3.2, (b) any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.3, (c) any Lender gives notice of an inability to fund LIBOR Loans under Section 3.1(b), (d) any Lender is a Defaulting Lender, or (e) any Lender (a “Non-Consenting Lender”) does not consent (including by way of a failure to respond in writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative Agent) to a proposed amendment, consent, change,  waiver,  discharge  or termination  hereunder or with respect to any Credit Document that has been approved by the Required Lenders, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.5, all of its interests, rights (other than its rights under Section 3.2, Section 3.3 and Section 11.2) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:                    (i)   the Borrower shall have paid to the Administrative Agent the assignment             fee specified in Section 11.5(b)(iv);                    (ii)  such  Lender  shall  have  received  payment  of  an  amount  equal  to  the             outstanding principal  of  its  Loans and participations in Letter of Credit  Borrowings,  as             applicable,  accrued  interest  thereon,  accrued  fees  and  all  other  amounts  payable  to  it             hereunder and under the other Credit Documents (including any amounts under Section             3.1(c)) from the assignee (to the extent of such outstanding principal and accrued interest             and fees) or the Borrower (in the case of all other amounts);                    (iii) in the case of any such assignment resulting from a claim for compensation             under  Section  3.2 or  payments  required  to  be  made  pursuant  to  Section  3.3,  such                                         60 

 

            assignment  is  reasonably  expected  to  result  in  a  reduction  in  such  compensation  or             payments thereafter;                    (iv)  such assignment does not conflict with Applicable Law; and                    (v)   in  the  case  of  any  such  assignment  resulting  from  a  Non-Consenting             Lender’s failure to consent to a proposed amendment, consent, change, waiver, discharge             or  termination,  the  successor  replacement  Lender  shall  have  consented  to  the  proposed             amendment, consent, change, waiver, discharge or termination.  Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section shall be effective regardless of whether an Assignment Agreement shall have been given.        A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.        Section 2.18 Extension of Revolving Maturity Date.              (a)   Request  for  Extension.   The  Borrower  may,  by  written  notice  (the  “Extension       Notice”)  to  the  Administrative  Agent  (which  shall  promptly  notify  the  Revolving  Lenders)  not       earlier than one hundred twenty (120) days and not later than sixty (60) days prior to the Revolving       Maturity Date, request that each Revolving Lender extend the Revolving Maturity Date for two (2)       additional  six  (6)  month  periods  from  the  Revolving  Maturity  Date  then  in  effect,  each  such       extension to be irrevocably granted on the date (an “Extension Effective Date”) that each of the       conditions set forth in this Section 2.18 have been satisfied.  Upon the satisfaction of each of the       conditions set forth in this Section 2.18, an Extension Effective Date shall occur and the Revolving       Maturity Date then in effect shall be extended for six (6) additional months.              (b)   Conditions  to  Effectiveness  of  Extension.   Subject  to  the  provisions  of  the       foregoing clause (a), the extension of the Revolving Maturity Date pursuant to this Section shall       not be effective with respect to any Revolving Lender unless:                   (i)    no  Default  or  Event  of  Default  has  occurred  and  is  continuing  on  the             subject Extension Effective Date;                    (ii)  the representations and  warranties contained  in Section 4 and the other             Credit Documents  are true and correct  in all  material respects on and as of the subject             Extension  Effective  Date,  except  to the  extent  that  such  representations  and  warranties             specifically refer to an earlier date, in which case they are true and correct in all material             respects  as  of  such  earlier  date,  and  except  that  for  purposes  of  this  Section  2.18,  the             representations and warranties contained in subsections (a) and (b) of Section 6.7 shall be             deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),             respectively, of Section 7.1;                    (iii) for the second six (6) month extension, the initial six (6) month extension             shall have been validly exercised;                                         61 

 

           (iv)   Administrative  Agent  shall  have  received  a  pro  forma  Compliance       Certificate as of the subject Extension Effective Date;              (v)   [intentionally deleted]; and              (vi)  the Borrowers shall pay to the Administrative Agent (for the benefit of the       Revolving Lenders) on the subject Extension Effective Date a fee (to be shared among and       paid to the Revolving Lenders based upon their Revolving Commitment Percentages of the       Aggregate Revolving Commitments) equal to the product of (i) 0.0625% multiplied by (ii)       the then Aggregate Revolving Commitments.        (c)   Conflicting  Provisions.  This  Section  shall  supersede  any  provisions  in  Section 11.4 to the contrary.  Section 2.19 Increase in Commitments.        (a)   Request for Increase.  Provided there exists no Default or Event of Default, upon notice to the Administrative Agent (which shall promptly notify the Lenders), the Borrower may, from time to time, request an increase in the Aggregate Revolving Commitments and/or the Term Loan by an amount (for all such requests) not exceeding $500,000,000 (to a maximum amount of Aggregate Revolving Commitments plus the Term Loan equal to $1,600,000,000); provided that any  such  request  for  an  increase  shall  be  in  a  minimum  amount  of  $10,000,000  and  in  whole increments of $5,000,000 in excess thereof; provided, further, at Borrower’s option, Borrower may request that any such requested increase be effected through the addition of one or more term loan commitments (and, in such event, all references in this Section 2.19 to any increase, as and to the extent applicable at any time, shall be deemed and construed to mean and refer to any such term loan commitment in the amount of such increase, mutatis mutandis), subject further, however, (1) to the continued applicability of the terms and provisions of this Section 2.19 and (2) in addition to the items specified in Section 2.19(e), the prior execution and delivery by the Credit Parties of such other  and  further  agreements,  amendments,  instruments,  and  documents  which  Administrative Agent  may  then  require  in  its  sole  but  reasonable  determination  to  effect  any  such  term  loan commitment in the amount of such increase.  At the time of sending any notice of such requested increase  in  the  Aggregate  Revolving  Commitments  and/or  the  Term  Loan,  the  Borrower  (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Lenders).        (b)   Lender Elections to Increase.  Each Lender may decline or elect to participate in such requested increase in the Aggregate Revolving Commitments and/or Term Loan in its sole discretion, and each Lender shall notify the Administrative Agent within such time period whether or not it agrees to increase its Revolving Commitment and/or Term Loan and, if so, whether by an amount equal to, greater than, or less than its Revolving Commitment Percentage of pro rata share of the Term Loan, as applicable, of such requested increase (based on such Lender’s Revolving Commitments  and  the  Aggregate  Revolving  Commitments  or  pro  rata  share  and  outstanding amount of the Term Loan, as applicable, in effect immediately prior to the effectiveness of any such  increase).   Any  Lender  not  responding  within  such  time  period  shall  be  deemed  to  have declined to increase its Revolving Commitment and/or Term Loan.        (c)   Notification by Administrative  Agent;  Additional Lenders.  The  Administrative Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made hereunder.  To achieve the full amount (or any lesser amount acceptable to the Borrower and the                                  62 

 

Administrative Agent) of a requested increase (in the event that the aggregate amount of increases in individual Revolving Commitments and/or Term Loan by then-existing Lenders is less than the aggregate  amount  of  the  requested  increase)  and  subject  to  the  approval  of  the  Borrower, Administrative Agent, the Issuing Bank and the Swingline Lender (which approvals shall not be unreasonably withheld), the Borrower, the Administrative Agent or the Lead Arrangers (or any of the them) may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement and/or commitment agreements in form and substance reasonably satisfactory as to its inclusion of such Eligible Assignees to the Administrative Agent and its counsel.  To the extent that the joinder or commitment agreements described above provide for an applicable margin of, and/or  commitment  or  facility  fee  for,  additional  Revolving  Commitments  and/or  Term  Loan greater  than  the  Applicable  Margin  and/or  Facility  Fee  with  respect  to  the  existing  Revolving Commitments and/or Term Loan at such time, the Applicable Margin and/or the Facility Fee (as applicable)  for  the  existing  Revolving  Commitments  and/or  Term  Loan  shall  be  increased automatically (without the consent of the Required Lenders) such that the Applicable Margin and/or the Facility Fee (as applicable) for such existing Revolving Commitments and/or Term Loan is not less than the applicable margin and/or the commitment fee or facility fee (as applicable) for such additional Revolving Commitments and/or Term Loan.         (d)   Effective Date and Allocations.  If the Aggregate Revolving Commitments and/or  Term  Loan  are  increased  in  accordance  with  this  Section,  the  Administrative  Agent  and  the  Borrower shall determine the effective date (the “Increase Effective Date”) and the final allocation  of such increase.  The Administrative Agent shall promptly notify the Borrower and the Lenders  of the final allocation of such increase and the Increase Effective Date.         (e)   Conditions to Effectiveness of Increase.  As a condition precedent to each such  increase in the Aggregate Revolving Commitments and/or Term Loan, the Borrower shall deliver  to the Administrative Agent (x) a certificate of each Credit Party dated as of the Increase Effective  Date  signed  by  an  Authorized  Officer  of  such  Credit  Party  (i)  certifying  and  attaching  the  resolutions adopted by such Credit Party approving or consenting to such increase, and (ii) in the  case  of  the  Borrower,  certifying  that,  before  and  after  giving  effect  to  such  increase,  (A)  the  representations and warranties contained in Section 6 and the other Credit Documents are true and  correct in all material respects on and as of the Increase Effective Date (with any representations  and warranties which are subject to a materiality qualifier being true and correct in all respects in  accordance with the terms thereof), except to the extent that such representations and warranties  specifically refer to an earlier date, in which case they are true and correct in all material respects  as of such earlier date, and except that for purposes of this Section 2.19, the representations and  warranties contained in subsections (a), (b) and (c) of Section 6.7 shall be deemed to refer to the  most recent statements furnished pursuant to clauses (a), (b) and (d), respectively, of Section 7.1,  and (B) no Default or Event of Default exists as of the Increase Effective Date, and (y) such new  or  additional Notes  payable  to  each  of  the  Lenders  as  are  required  to  be  delivered  pursuant  to  Section  2.5(b).   The  Borrower  shall  prepay  any  Revolving  Loans  outstanding  on  the  Increase  Effective Date (and pay any additional amounts required pursuant to Section 3.1(c)) to the extent  necessary  to  keep  the  outstanding  Revolving  Loans  ratable  with  any  revised  Revolving  Commitment  Percentages  arising  from  any  non-ratable  increase  in  the  Aggregate  Revolving  Commitments under this Section, and each Credit Party shall execute and deliver such documents  or instruments as the Administrative Agent may require to evidence such increase in Revolving  Commitments  and/or  Term  Loan  and  to  ratify  each  such  Credit  Party’s  continuing  obligations  hereunder and under the other Credit Documents.         (f)   Conflicting  Provisions.  This  Section  shall  supersede  any  provisions  in  Section  11.4 to the contrary.                                   63 

 

                 Section 3   YIELD PROTECTION  Section 3.1 Making or Maintaining LIBOR Loans.        (a)   Inability  to  Determine  Applicable  Interest  Rate.   (i)  In  the  event  that  the Administrative Agent shall have reasonably determined (which determination shall be final and conclusive and binding upon all parties hereto), on any Interest Rate Determination Date or any Index Rate Determination Date with respect to any LIBOR Loans that, by reason of circumstances affecting the London interbank market, adequate and fair means do not exist for ascertaining the interest rate applicable to such LIBOR Loans on the basis provided for in the definition of Adjusted LIBOR  Rate  or  LIBOR  Index  Rate,  as  applicable,  (in  each  case,  with  respect  this  clause (a), “Impacted Loans”) the Administrative Agent shall on such date give notice (by telefacsimile or by telephone  confirmed  in  writing)  to  the  Borrower  and  each  Lender  of  such  determination, whereupon (1) no Loans may be made as, or converted to, LIBOR Loans until such time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, and (2) any Funding Notice or Conversion/Continuation Notice given by the Borrower with respect to the Loans in respect of which such determination was made shall be  deemed  to  be  rescinded  by  the  Borrower  and  such  Loans  shall  be  automatically  made  or continued as, or converted to, as applicable, Base Rate Loans without reference to the LIBOR Index Rate component of the Base Rate.             (ii)   If at any time the Administrative Agent reasonably determines that either (1) the circumstances set forth in clause (i) of this Section 3.1(a) have arisen and such circumstances are unlikely to be temporary or (2) the circumstances set forth in clause (i) of this Section 3.1(a) have not arisen but the supervisor for the administrator of the LIBOR Index Rate or a Governmental Authority  having  jurisdiction  over  the  Administrative  Agent  has  made  a  public  statement identifying a specific date after which LIBOR shall no longer be used for determining interest rates for loans (in the case of either such clause (1) or (2), an “Alternative Interest Rate Election Event”), the Administrative Agent and the Borrower shall endeavor to establish an alternate rate of interest to the LIBOR Index Rate, which rate may include adjustment (to be reasonably determined from time to time by Administrative Agent) to effect an aggregate interest rate comparable to the LIBOR Index Rate on a historical basis prior to such determination, and that gives due consideration to the then prevailing market convention for determining a rate of interest for leveraged syndicated loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such  alternate  rate  of  interest  and  such  other  related  changes  to  this  Agreement  as  may  be applicable.  Such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within ten (10) Business Days of the date a copy of such amendment is provided to the Lenders, a written notice from the Required Lenders stating that such Required Lenders object to such amendment. To the extent an alternate rate of interest is adopted as contemplated hereby, the approved rate shall be applied in a manner consistent with prevailing market convention; provided that, to the extent such prevailing market convention is not administratively feasible for the Administrative Agent, such  approved  rate  shall  be  applied  in  a  manner  as  otherwise  reasonably  determined  by  the Administrative Agent and the Borrower. From such time as an Alternative Interest Rate Election Event  has  occurred  and  continuing  until  an  alternate  rate  of  interest  has  been  determined  in accordance with the terms and conditions of this paragraph, (x) any Form of Funding Notice  that requests the conversion of any Loan to, or continuation of any Loan as, a LIBOR Loan shall be ineffective, and (y) if any Form of Funding Notice  requests a LIBOR Loan, such Loan shall be made as a Base Rate Loan; provided that (subject to clause (i) of this Section 3.1(a)) the LIBOR Index Rate for such Interest Period is not available or published at such time on a current basis;                                   64 

 

provided, further, that, if such alternate rate of interest shall be less than zero, such rate shall be  deemed to be zero for the purposes of this Agreement.         (b)   Illegality or Impracticability of LIBOR Loans.  In the event that on any date any  Lender shall have determined (which determination shall be final and conclusive and binding upon  all parties hereto but shall be made only after consultation with the Borrower and the Administrative  Agent) that the making, maintaining or continuation of its LIBOR Loans (i) has become unlawful  as a result of compliance by such Lender in good faith with any law, treaty, governmental rule,  regulation,  guideline  or  order  (or  would  conflict  with  any  such  treaty,  governmental  rule,  regulation,  guideline  or  order  not  having  the  force  of  law  even  though  the  failure  to  comply  therewith would not be unlawful), or (ii) has become impracticable, as a result of contingencies  occurring after the date hereof which materially and adversely affect the London interbank market  or the position of such Lender in that market, then, and in any such event, such Lender shall be an  “Affected Lender” and it shall on that day give notice (by telefacsimile or by telephone confirmed  in writing) to the Borrower and the Administrative Agent of such determination (which notice the  Administrative Agent shall promptly transmit to each other Lender).  Thereafter (1) the obligation  of the Affected Lender to make Loans as, or to convert Loans to, LIBOR Loans shall be suspended  until such notice shall be withdrawn by the Affected Lender, (2) to the extent such determination  by the Affected Lender relates to a LIBOR Loan then being requested by the Borrower pursuant to  a Funding Notice or a Conversion/Continuation Notice, the Affected Lender shall make such Loan  as (or continue such Loan as or convert such Loan to, as the case may be) a Base Rate Loan without  reference  to  the  LIBOR  Index  Rate  component  of  the  Base  Rate,  (3)  the  Affected  Lender’s  obligation to maintain its outstanding LIBOR Loans (the “Affected Loans”) shall be terminated at  the earlier to occur of the expiration of the Interest Period then in effect with respect to the Affected  Loans or when required by law, and (4) the Affected Loans shall automatically convert into Base  Rate Loans without reference to the LIBOR Index Rate component of the Base Rate on the date of  such termination.  Notwithstanding the foregoing, to the  extent a determination by an Affected  Lender as described above relates to a LIBOR Loan then being requested by the Borrower pursuant  to  a  Funding  Notice  or  a Conversion/Continuation  Notice,  the  Borrower  shall  have  the  option,  subject  to  the  provisions  of  Section  3.1(a)(i),  to  rescind  such  Funding  Notice  or  Conversion/Continuation Notice as to all Lenders by giving notice (by telefacsimile or by telephone  confirmed  in  writing)  to  the  Administrative  Agent  of  such rescission  on  the  date  on  which  the  Affected Lender gives notice of its determination as described above (which notice of rescission  the Administrative Agent shall promptly transmit to each other Lender).  Except as provided in the  immediately preceding sentence, nothing in this Section 3.1(b) shall affect the obligation of any  Lender other than an Affected Lender to make or maintain Loans as, or to convert Loans to, LIBOR  Loans in accordance with the terms hereof.         (c)   Compensation  for  Breakage  or  Non-Commencement  of  Interest  Periods.   The  Borrower shall compensate each Lender, upon written request by such Lender (which request shall  set forth the basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses  and liabilities (including any interest paid or calculated to be due and payable by such Lender to  lenders of funds borrowed by it to make or carry its Adjusted LIBOR Rate Loans and any loss,  expense or liability sustained by such Lender in connection with the liquidation or re-employment  of such funds but excluding loss of anticipated profits) which such Lender sustains:  (i) if for any  reason (other than a default by such Lender) a borrowing of any Adjusted LIBOR Rate Loans does  not occur on a date specified therefor in a Funding Notice or a telephonic request for borrowing, or  a  conversion  to  or  continuation  of  any  Adjusted  LIBOR  Rate  Loans  does  not  occur  on  a  date  specified therefor in a Conversion/Continuation Notice or a telephonic request for conversion or  continuation; (ii) if any prepayment or other principal payment of, or any conversion of, any of its  Adjusted  LIBOR  Rate  Loans  occurs  on  any  day  other  than  the  last  day  of  an  Interest  Period                                   65 

 

applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise), including as a result of an assignment in connection with the replacement of a Lender pursuant to Section 3.4(b); or (iii) if any prepayment of any of its Adjusted LIBOR Rate Loans is  not made on any date specified in a notice of prepayment given by the Borrower.         (d)   Booking of LIBOR Loans.  Any Lender may make, carry or transfer LIBOR Loans  at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.         (e)   Assumptions Concerning Funding of Adjusted LIBOR Rate Loans.  Calculation  of all amounts payable to a Lender under this Section 3.1 and under Section 3.2 shall be made as  though such Lender had actually funded each of its relevant Adjusted LIBOR Rate Loans through  the purchase of a LIBOR deposit bearing interest at the rate obtained pursuant to clause (i) of the  definition of Adjusted LIBOR Rate in an amount equal to the amount of such Adjusted LIBOR  Rate  Loans  and  having  a  maturity  comparable  to  the  relevant  Interest  Period  and  through  the  transfer of such LIBOR deposit from an offshore office of such Lender to a domestic office of such  Lender in the  United States of  America;  provided, however,  each Lender  may fund  each  of its  Adjusted  LIBOR  Rate  Loans  in  any  manner  it  sees  fit  and  the  foregoing  assumptions  shall  be  utilized  only for the purposes  of calculating amounts payable under this Section 3.1 and under  Section 3.2.         (f)   Certificates  for  Reimbursement.   A  certificate  of  a  Lender  setting  forth  in  reasonable  detail  the  amount  or  amounts  necessary  to  compensate  such  Lender,  as specified  in  paragraph (c) of this Section and the circumstances giving rise thereto shall be delivered to the  Borrower and shall be conclusive absent manifest error.  In the absence of any such manifest error,  the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as  due on any such certificate within ten (10) Business Days after receipt thereof.         (g)   Delay in Requests.  The Borrower shall not be required to compensate a Lender  pursuant to this Section for any such amounts incurred more than six (6) months prior to the date  that such Lender delivers to the Borrower the certificate referenced in Section 3.1(f).   Section 3.2 Increased Costs.         (a)   Increased Costs Generally.  If any Change in Law shall:               (i)   impose,  modify  or  deem  applicable  any  reserve,  special  deposit,        compulsory loan, insurance charge or similar requirement against assets of, deposits with        or  for  the  account  of,  or  credit  extended  or  participated  in  by,  any  Lender  (except  any        reserve requirement reflected in the Adjusted LIBOR Rate) or the Issuing Bank;               (ii)  subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B)        Taxes described in clauses  (b) through (d) of the definition of Excluded Taxes and (C)        Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or        other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or               (iii) impose on any Lender or the Issuing Bank or the London interbank market        any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans        made by such Lender or any Letter of Credit or participation therein;   and the result of any of the foregoing shall be to increase the cost to such Lender or such other  Recipient  of  making,  converting  to,  continuing  or  maintaining  any  Loan  or  of  maintaining  its                                    66 

 

obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received  or  receivable  by  such  Lender,  Issuing  Bank  or  other  Recipient  hereunder  (whether  of principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may be, such additional amount or amounts as will reasonably compensate such Lender, Issuing Bank or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.       (b)   Capital Requirements.  If any Lender, the Issuing Bank or the Swingline Lender (for purposes hereof, may be referred to collectively as “the Lenders” or a “Lender”) determines that  any  Change  in  Law  affecting  such  Lender  or  any  lending  office  of  such  Lender  or  such Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the commitments of such Lender hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking  into  consideration  such  Lender’s  policies  and  the  policies  of  such  Lender’s  holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.        (c)   Certificates  for  Reimbursement.   A  certificate  of  a  Lender  or  an  Issuing  Bank setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error.  In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.        (d)   Delay in Requests.  Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that such Lender or the Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in Section 3.2(c)  and  notifies  the  Borrower  of  such  Lender’s  or  the  Issuing  Bank’s  intention  to  claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).  Section 3.3 Taxes.        (a)   Issuing Bank.  For purposes of this Section 3.3, the term “Lender” shall include the Issuing Bank.        (b)   Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes. Any and all payments by or on account of any obligation of any Credit Party hereunder or under any other Credit Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law.  If any Applicable Law (as determined in the good faith discretion                                  67 

 

of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified  Tax,  then  the  sum  payable  by  the  applicable  Credit  Party  shall  be  increased  as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.         (c)   Payment of Other Taxes by the Credit Parties.  The Credit Parties shall timely pay  to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the  Administrative Agent timely reimburse it for the payment of, any Other Taxes.         (d)   Tax Indemnification.  (i) The Credit Parties shall jointly and severally indemnify  each Recipient  within ten (10) Business Days after demand therefor, for the full amount of any  Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts  payable  under  this  Section)  payable  or  paid  by  such  Recipient  or  required  to  be  withheld  or  deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with  respect  thereto,  whether  or  not  such  Indemnified  Taxes  were  correctly  or  legally  imposed  or  asserted  by  the  relevant  Governmental  Authority.   A  certificate  as  to  the  amount  of  any  such  payment  or  liability  delivered  to  the  Borrower  by a Lender  (with  a  copy  to  the  Administrative  Agent),  or  by  the  Administrative  Agent  on  its  own  behalf  or  on  behalf  of  a  Lender,  shall  be  conclusive absent manifest error.              (ii)   Each Lender shall severally indemnify the Administrative  Agent  within        ten (10) Business Days after demand therefor, for (i) any Indemnified Taxes attributable to        such Lender (but only to the extent that any Credit Party has not already indemnified the        Administrative Agent for such Indemnified Taxes and without limiting the obligation of        the Credit Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply        with the provisions of Section 11.5(d) relating to the maintenance of a Participant Register        and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or        paid  by  the  Administrative  Agent  in  connection  with  any  Credit  Document,  and  any        reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes        were correctly or legally imposed or asserted by the relevant Governmental Authority.  A        certificate as to the amount  of such payment or liability delivered to any Lender by the        Administrative  Agent  shall  be  conclusive  absent  manifest  error.   Each  Lender  hereby        authorizes the Administrative Agent to set off and apply any and all amounts at any time        owing  to  such  Lender  under  any  Credit  Document  or  otherwise  payable  by  the        Administrative Agent to the Lender from any other source against any amount due to the        Administrative Agent under this clause (ii).         (e)   Evidence of Payments.  As soon as practicable after any payment of Taxes by any  Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver  to  the  Administrative  Agent  the  original  or  a  certified  copy  of  a  receipt  issued  by  such  Governmental Authority evidencing such payment, a copy of a return reporting such payment or  other evidence of such payment reasonably satisfactory to the Administrative Agent.         (f)   Status  of  Lenders;  Tax  Documentation.  (i) Any  Lender  that  is  entitled  to  an  exemption from or reduction of withholding Tax with respect to payments made under any Credit  Document  shall  deliver  to  the  Borrower  and  the  Administrative  Agent,  at  the  time  or  times                                   68 

 

reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be  made  without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.   Notwithstanding  anything  to  the  contrary  in  the  preceding  two  sentences,  the completion, execution and submission of such documentation (other than such documentation set forth in clauses (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable  judgment such completion, execution or submission would subject such Lender to any  material  unreimbursed cost or expense or would materially prejudice the legal or commercial position of  such Lender.              (ii)   Without  limiting  the  generality  of  the  foregoing,  in  the  event  that  the        Borrower is a U.S. Person,                     (A)   any Lender that is a U.S. Person shall deliver to the Borrower and              the Administrative Agent on or prior to the date on which such Lender becomes a              Lender under this Agreement (and from time to time thereafter upon the reasonable              request of the Borrower or the Administrative Agent), executed originals of IRS              Form  W-9  certifying  that  such  Lender  is  exempt  from  U.S.  federal  backup              withholding tax;                     (B)   any Foreign Lender shall, to the extent it is legally entitled to do              so, deliver to the Borrower and the Administrative Agent (in such number of copies              as shall be requested by the recipient) on or prior to the date on which such Foreign              Lender becomes a Lender under this Agreement (and from time to time thereafter              upon  the  reasonable  request  of  the  Borrower  or  the  Administrative  Agent),              whichever of the following is applicable:                           (i)   in the case of a Foreign Lender claiming the benefits of                    an income tax treaty to which the United States is a party (x) with respect                    to payments of interest under any Credit Document, executed originals of                    IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor form)                    establishing an exemption from, or reduction of, U.S. federal withholding                    Tax pursuant to the “interest” article of such tax treaty and (y) with respect                    to any other applicable payments under any Credit Document, IRS Form                    W-8BEN  or  W-8BEN-E,  as  applicable  (or  any  successor  form)                    establishing an exemption from, or reduction of, U.S. federal withholding                    Tax pursuant to the “business profits” or “other income” article of such                    tax treaty;                           (ii)  executed originals of IRS Form W-8ECI;                           (iii) in the case of a Foreign Lender claiming the benefits of                    the exemption for portfolio interest under Section 881(c) of the Internal                    Revenue Code, (x) a certificate substantially in the form of Exhibit 3.3-1                    to the effect that such Foreign Lender is not a “bank” within the meaning                    of  Section  881(c)(3)(A)  of  the  Internal  Revenue  Code,  a  “10  percent                    shareholder” of the Borrower within the meaning of Section 881(c)(3)(B)                                   69 

 

                        of  the  Internal  Revenue  Code,  or  a  “controlled  foreign  corporation”                         described in Section 881(c)(3)(C) of the Internal Revenue Code (a “U.S.                         Tax Compliance Certificate”) and (y) executed originals of IRS Form W-                         8BEN or W-8BEN-E, as applicable (or any successor form); or                                (iv)  to the extent a Foreign Lender is not the beneficial owner,                         executed originals of IRS Form W-8IMY, accompanied by IRS Form W-                         8ECI, IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor                         form),  a  U.S.  Tax  Compliance  Certificate  substantially  in  the  form  of                         Exhibit 3.3-2 or Exhibit 3.3-3, IRS Form W-9, and/or other certification                         documents from each beneficial owner, as applicable; provided that if the                         Foreign Lender is a partnership and one or more direct or indirect partners                         of such Foreign Lender are claiming the portfolio interest exemption, such                         Foreign  Lender  may  provide  a  U.S.  Tax  Compliance  Certificate                         substantially in the form of Exhibit 3.3-4 on behalf of each such direct and                         indirect partner;                          (C)   any Foreign Lender shall, to the extent it is legally entitled to do                   so, deliver to the Borrower and the Administrative Agent (in such number of copies                   as shall be requested by the recipient) on or prior to the date on which such Foreign                   Lender becomes a Lender under this Agreement (and from time to time thereafter                   upon  the  reasonable  request  of  the  Borrower  or  the  Administrative  Agent),                   executed originals of any other form prescribed by Applicable Law as a basis for                   claiming  exemption  from  or  a reduction  in  U.S.  federal  withholding  Tax,  duly                   completed, together with such supplementary documentation as may be prescribed                   by  Applicable  Law  to  permit  the  Borrower  or  the  Administrative  Agent  to                   determine the withholding or deduction required to be made; and                          (D)   if a payment made to a Lender under any Credit Document would                   be subject to  U.S. federal withholding Tax imposed by FATCA if such Lender                   were  to  fail  to  comply  with  the  applicable  reporting  requirements  of  FATCA                   (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue                   Code,  as  applicable),  such  Lender  shall  deliver  to  the  Borrower  and  the                   Administrative Agent at the time or times prescribed by law and at such time or                   times  reasonably  requested  by  the  Borrower  or  the  Administrative  Agent  such                   documentation prescribed by Applicable Law (including as prescribed by Section                   1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation                   reasonably  requested  by  the  Borrower  or  the  Administrative  Agent  as  may  be                   necessary  for  the  Borrower  and  the  Administrative  Agent  to  comply  with  their                   obligations under FATCA and to determine that such Lender has complied with                   such Lender’s obligations under FATCA or to determine the amount to deduct and                   withhold from such payment.  Solely for purposes of this clause (D), “FATCA”                   shall include any amendments made to FATCA after the date of this Agreement.        Each Lender agrees that if any form or certification it  previously delivered expires or becomes obsolete  or  inaccurate  in  any  respect,  it  shall  update  such  form  or  certification  or  promptly  notify  the Borrower and the Administrative Agent in writing of its legal inability to do so.              (g)   Treatment  of Certain Refunds.  Unless  required by Applicable Law, at no time       shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a       Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted                                        70 

 

     from funds paid for the account of such Lender.  If any party determines,  in its sole discretion      exercised  in  good  faith,  that  it  has  received  a  refund  of  any  Taxes  as  to  which  it  has  been      indemnified pursuant to this Section (including by the payment of additional amounts pursuant to      this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the      extent of indemnity payments made under this Section with respect to the Taxes giving rise to such      refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without      interest (other than any interest paid by the relevant Governmental Authority with respect to such      refund).  Such indemnifying party, upon the request of the indemnified party, shall repay to such      indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest      or  other  charges  imposed  by  the  relevant  Governmental  Authority)  in  the  event  that  such      indemnified  party  is  required  to  repay  such  refund  to  such  Governmental  Authority.      Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified      party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the      payment of which would place the indemnified party in a less favorable net after-Tax position than      the indemnified party would have been in if the Tax subject to indemnification and giving rise to      such  refund  had  not  been  deducted,  withheld  or  otherwise  imposed  and  the  indemnification      payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall      not be construed to require any indemnified party to make available its Tax returns (or any other      information relating to its Taxes that it deems confidential) to the indemnifying party or any other      Person.              (h)   Survival.   Each  party’s  obligations  under  this  Section  3.3  shall  survive  the       resignation  or  replacement  of the  Administrative  Agent  or  any  assignment  of  rights  by,  or  the       replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or       discharge of all obligations under any Credit Document.        Section 3.4 Mitigation  Obligations;  Designation  of  a  Different  Lending  Office.   (a) Designation of a Different  Lending Office.  If any Lender requests  compensation under Section 3.2, or requires  the  Borrower  to  pay  any  Indemnified  Taxes  or  additional  amounts  to  any  Lender  or  any Governmental Authority for the account of any Lender pursuant to Section 3.3, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking  its  Loans  hereunder  or  to  assign  its  rights  and  obligations  hereunder  to  another  of its  offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.2 or Section 3.3, as the case may be, in the future, and (ii) would  not  subject  such  Lender  to  any  unreimbursed  cost  or  expense  and  would  not  otherwise  be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.             (b)    Replacement of Lenders.  If any Lender requests compensation under Section 3.2,       or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender       or any Governmental Authority for the account of any Lender pursuant to Section 3.3 and, in each       case, such Lender has declined or is unable to designate a different lending office in accordance       with Section 3.4(a), or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the       Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative       Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject       to the restrictions contained in, and consents required by, Section 11.5), all of its interests, rights       (other than its existing rights to payments pursuant to Section 3.2 or Section 3.3) and obligations       under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume       such obligations (which assignee may be another Lender, if a Lender accepts such assignment);       provided that:                                         71 

 

                  (i)    the Borrower shall have paid to the Administrative Agent the assignment              fee (if any) specified in Section 11.5;                     (ii)  such  Lender  shall  have  received  payment  of  an  amount  equal  to  the              outstanding  principal  of  its  Loans  and  participations  in  Letter  of  Credit  Borrowings,              accrued interest thereon, accrued fees and all other amounts payable to it hereunder and              under the  other Credit Documents (including any amounts  under Section 3.1)  from the              assignee (to the extent of such outstanding principal and accrued interest and fees) or the              Borrower (in the case of all other amounts);                     (iii) in the case of any such assignment resulting from a claim for compensation              under  Section  3.2  or  payments  required  to  be  made  pursuant  to  Section  3.3,  such              assignment will result in a reduction in such compensation or payments thereafter;                     (iv)  such assignment does not conflict with Applicable Law; and                     (v)   in the case of any assignment resulting from a Lender becoming a Non-              Consenting  Lender,  the  applicable  assignee  shall  have  consented  to  the  applicable              amendment, waiver or consent.   A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a  waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment  and delegation cease to apply.                              Section 4   GUARANTY         Section 4.1 The Guaranty.         Each of the Guarantors hereby jointly and severally guarantees to each Lender, each Swap Bank, each Treasury Management Bank, and the Administrative Agent as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations in full when due (whether at stated maturity, as a mandatory prepayment,  by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in accordance with the terms thereof.  The Guarantors hereby further agree that if any of the Obligations are not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) in accordance with the terms of such extension or renewal.         Notwithstanding  any  provision  to  the  contrary  contained  herein  or  in  any  other  of  the  Credit Documents, Swap Contracts or Treasury Management Agreements, (a) the obligations of each Guarantor under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law and (b) no Guarantor shall be deemed under this Section 4 to be a guarantor of any Obligations arising under any Swap Contracts if such Guarantor was not  an “Eligible Contract Participant” as defined in § 1a(18) of the Commodity Exchange Act, as further defined  and modified by the final rules issued jointly by the Commodity Futures Trading Commission and the SEC  as  published  in  77  FR  30596  (May  23,  2012)  (as  amended,  modified  or  replaced  from  time  to  time,  collectively,  with  the  Commodity  Exchange  Act,  the  “ECP  Rules”),  at  the  time  the  guaranty  of  such  obligations was  entered  into,  and  at  such  other  relevant  time  or  time  as  provided  in  the  ECP  Rules  or                                          72 

 

otherwise, and to the extent that the providing of such guaranty by such Guarantor would violate the ECP Rules  or  any  other  Applicable  Law  or  regulation;  provided  however  that  in  determining  whether  any Guarantor is an “Eligible Contract Participant” under the ECP Rules, the guaranty of the Obligations of such Guarantor under this Article IV by a Guarantor that qualifies as an “Eligible Contract Participant” under § 1a(18)(A)(v)(I) of the Commodity Exchange Act shall be taken into account.        Section 4.2 Obligations Unconditional.         The  obligations  of  the  Guarantors  under  Section  4.1  are  joint  and  several,  absolute  and  unconditional, irrespective  of the value,  genuineness, validity, regularity or enforceability of any of the  Credit  Documents,  Swap  Contracts  or  Treasury  Management  Agreements,  or  any  other  agreement  or  instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee  of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Law, irrespective  of any law or  regulation  or other circumstance  whatsoever  which  might  otherwise constitute a legal  or  equitable  discharge  or  defense  of  a  surety  or  guarantor,  it  being  the  intent  of  this  Section  4.2  that  the  obligations  of  the  Guarantors  hereunder  shall  be  absolute  and  unconditional  under  any  and  all  circumstances.  Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity,  reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this  Section 4 until the Termination Date.  Without limiting the generality of the foregoing, it is agreed that, to  the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or  impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described  above:              (a)    at any time or from time to time, without notice to any Guarantor, the time for any        performance of or compliance with any of the Obligations shall be extended, or such performance        or compliance shall be waived;               (b)   any of the acts mentioned in any of the provisions of any of the Credit Documents,        any Swap Contract between any Credit Party and any Swap Bank, or any Treasury Management        Agreement between any Credit Party and any Treasury Management Bank, or any other agreement        or  instrument  referred  to  in  the  Credit  Documents,  such  Swap  Contracts  or  such  Treasury        Management Agreements shall be done or omitted;               (c)   the  maturity  of  any  of  the  Obligations  shall  be  accelerated,  or  any  of  the        Obligations shall be modified, supplemented or amended in any respect, or any right under any of        the Credit Documents, any Swap Contract between any Credit Party and any Swap Bank or any        Treasury Management Agreement between any Credit Party and any Treasury Management Bank,        or any other agreement or instrument referred to in the Credit Documents, such Swap Contracts or        such  Treasury  Management  Agreements  shall  be  waived  or  any  other  guarantee  of  any  of  the        Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or        otherwise dealt with;               (d)   as  may  be  applicable  at  any  time,  any  Lien  granted  to,  or  in  favor  of,  the        Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to        attach or be perfected; or               (e)   any  of  the  Obligations  shall  be  determined  to  be  void  or  voidable  (including,        without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the        claims of any Person (including, without limitation, any creditor of any Guarantor).                                          73 

 

      With  respect  to  its  obligations  hereunder,  each  Guarantor  hereby  expressly  waives  diligence, presentment,  demand  of  payment,  protest  and  all  notices  whatsoever,  and  any  requirement  that  the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Credit Documents, any Swap Contract between any Credit Party and any Swap Bank or any Treasury Management Agreement between any Credit Party and any Treasury Management Bank, or any  other  agreement  or  instrument  referred  to  in  the  Credit  Documents,  such  Swap  Contracts  or  such Treasury Management Agreements, or against any other Person under any other guarantee of, or security for, any of the Obligations.        Section 4.3 Reinstatement.         The obligations of the Guarantors under this Section 4 shall be automatically reinstated if and to  the extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is  rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any  proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify  the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including,  without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent  or such Lender in connection with such rescission or restoration, including any such costs and expenses  incurred in defending against  any claim alleging that such payment  constituted a preference, fraudulent  transfer or similar payment under any bankruptcy, insolvency or similar law.         Section 4.4 Certain Additional Waivers.         Each  Guarantor  agrees  that  such  Guarantor  shall  have  no  right  of  recourse  to  security  for  the Obligations, except through the exercise of rights of subrogation pursuant to Section 4.2 and through the  exercise of rights of contribution pursuant to Section 4.6.         Section 4.5 Remedies.         The Guarantors agree that, to the fullest extent permitted by law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to  be  forthwith  due  and  payable  as  provided  in  Section  9.2  (and  shall  be  deemed  to  have  become  automatically due and payable in the circumstances provided in said Section 9.2) for purposes of Section  4.1 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the  Obligations from becoming automatically due and payable) as against any other Person and that, in the  event of such declaration (or the Obligations being deemed to have become automatically due and payable),  the Obligations (whether or not  due and payable by any other Person) shall forthwith become  due and  payable by the Guarantors for purposes of Section 4.1.         Section 4.6 Rights of Contribution.         The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Law. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until the Termination Date.         Section 4.7 Guarantee of Payment; Continuing Guarantee.         The  guarantee  in this Section 4 is  a guaranty of payment and  not  of collection, is a continuing  guarantee, and shall apply to all Obligations whenever arising.                                          74 

 

      Section 4.8 Keepwell.         Each Credit Party that is a Qualified ECP Guarantor at the time the Guaranty or the grant of a Lien under the Credit Documents, in each case, by any Specified Credit Party becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Credit Party with respect to such Swap Obligation as may be needed by such Specified Credit Party from time to time to honor all of its obligations under the Credit Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Section 4 voidable under Applicable Law relating to fraudulent conveyance or  fraudulent transfer, and not for any greater amount).  The obligations and undertakings of each Qualified  ECP Guarantor under this Section shall remain in full force and effect until the Termination Date.  Each  Credit Party intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee  of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Credit  Party for all purposes of the Commodity Exchange Act or any regulations promulgated thereunder.                        Section 5   CONDITIONS PRECEDENT         Section 5.1 Conditions Precedent to Effective Date.  The effectiveness of this Agreement and  the making of the Term Loan on the Effective Date and any Credit Extension to be made on the Effective  Date is subject to the satisfaction of the following conditions on or before the Effective Date:              (a)    Executed  Credit  Documents.   Receipt  by  the  Administrative  Agent  of  fully        executed counterparts of the following:                    (i)    this Agreement.                    (ii)   a Revolving Loan Note in favor of each Revolving Lender requesting a              Note.                     (iii) a Term Note in favor of each Term Lender requesting a Note.                     (iv)  a Borrowing Base Certificate.                     (v)   a Compliance Certificate.                     (vi)  each  of  the  other  Credit  Documents  which  is  to  be  executed  on  the              Effective  Date,  in  each  case  in  form  and  substance  reasonably  satisfactory  to  the              Administrative Agent and the Lenders and duly executed by the appropriate parties thereto.               (b)   Organizational Documents.  Receipt by the Administrative Agent of the following:                     (i)   Charter  Documents.   Copies  of  articles  of  incorporation,  certificate  of              organization or formation, or other like document for each of the Credit Parties certified as              of a recent date by the appropriate Governmental Authority.                     (ii)  Organizational  Documents  Certificate.   (i)  Copies  of  bylaws,  operating              agreement, partnership agreement or like document, (ii) copies of resolutions approving              the transactions contemplated in connection with the financing and authorizing execution              and delivery of the Credit Documents, and (iii) incumbency certificates, for each of the                                          75 

 

      Credit  Parties,  in  each  case  certified  by  an  Authorized  Officer  in  form  and  substance       reasonably satisfactory to the Administrative Agent.              (iii) Good  Standing  Certificate.   Copies  of  certificates  of  good  standing,       existence or other like document for each of the Credit Parties, dated as of a recent date,       from  the  appropriate  Governmental  Authority  of  its  jurisdiction  of  formation  or       organization.              (iv)  Beneficial Ownership Certification.  An executed Beneficial Ownership       Certification.              (v)   Closing  Certificate.   A  certificate  from  an  Authorized  Officer  of  the       Borrower,  in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent,       confirming, among other things, (A) all consents, approvals, authorizations, registrations,       or filings required to be made or obtained by the Borrower and the other Credit Parties, if       any,  in  connection  with  this  Agreement  and  the  other  Credit  Documents  and  the       transactions contemplated herein and therein have been obtained and are in full force and       effect,  (B)  no  investigation  or  inquiry  by  any  Governmental  Authority  regarding  this       Agreement and the other Credit Documents and the transactions contemplated herein and       therein is ongoing, (C) since the date of the most-recent financial statements for the Parent       and its Subsidiaries, there has been no event or circumstance which could be reasonably       expected to have a Material Adverse Effect, (D) the most recent financial statements were       prepared in accordance with GAAP consistently applied, except as noted therein, and fairly       presents in all material respects the financial condition and results from operations of the       Parent and its Subsidiaries, and (E) as of the Effective Date, the Borrower, the Parent and       the other Credit Parties, individually and taken as a whole, are Solvent.        (c)   Opinions of Counsel.  Receipt by the Administrative Agent of customary opinions of counsel (including local counsel to the extent required by the Administrative Agent) for each of the Credit Parties addressed to and/or for the benefit of the Administrative Agent and the Lenders, including, among other things, opinions regarding the due authorization, execution and delivery of the Credit Documents, the enforceability thereof and the perfection of the Liens granted thereunder or pursuant thereto.        (d)   Other  Due  Diligence  Matters.   Without  limiting  the  foregoing  (but  without duplication), satisfaction of all of the following conditions:             (i)    All  due  diligence  with  respect  to  the  Parent,  the  Borrower,  the  other       Guarantors  and  the  Unencumbered  Property  Owners  shall  be  satisfactory  to  the       Administrative Agent, the Lead Arrangers and the Lenders, including, without limitation,       all  diligence  required  for  each  Lender  to  complete  its  Patriot  Act  and  “know  your       customer” requirements;              (ii)  If requested by Administrative Agent, searches of Uniform Commercial       Code filings in the jurisdiction of organization of each Credit Party, copies of the financing       statements  on  file  in  such  jurisdictions  and  evidence  that  no  Liens  exist  other  than       Permitted Liens.              (iii) There  exists  no  action,  suit,  investigation  or  proceeding,  pending  or       threatened,  in  any  court  or  before  any  arbitrator  or  other  Governmental  Authority  that       purports  to  affect  any  transaction  contemplated  hereby  or  by  any  of  the  other  Credit                                  76 

 

             Documents, or that will have a Material Adverse Effect on the Parent, the Borrower, the              other  Guarantors,  the  Unencumbered  Property  Owners,  their  Affiliates  or  their              Subsidiaries, except to the extent approved by the Administrative Agent;                     (iv)  Each of the Parent, the Borrower, the other Guarantors, the Unencumbered              Property Owners and their respective Subsidiaries are in compliance with all terms and              covenants set forth herein and in each of the other Credit Documents; and                     (v)   The Administrative Agent, the Lead Arrangers and the Lenders shall have              received pro forma financial projections for the Parent, the Borrower and their respective              Subsidiaries on a consolidated basis, for Fiscal Years ended December 31, 2018, December              31, 2019 and December 31, 2020, respectively, which pro form financial projections shall              be acceptable to the Administrative Agent, the Lead Arrangers and the Lenders, in their              sole discretion.               (e)   Funding  Notice;  Funds  Disbursement  Instructions.   The  Administrative  Agent        shall have received (a) a duly executed Funding Notice with respect to the funding of the Term        Loan and any other Credit Extension to occur on the Effective Date (if any) and (b) duly executed        disbursement instructions (with wiring instructions and account information) for all disbursements        to be made on the Effective Date (if any).               (f)   Fees and Expenses.  The  Administrative  Agent  shall have confirmation that  all        reasonable and documented out-of-pocket fees and expenses required to be paid on or before the        Effective Date have been paid, including the reasonable and documented out-of-pocket fees and        expenses of counsel for the Administrative Agent.  For purposes of determining compliance with the conditions specified in this Section 5.1, each Lender that  has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied  with, each document or other matter required thereunder to be consented to or approved by or acceptable  or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender  prior to the proposed Effective Date specifying its objection thereto.   The funding of the initial Loans hereunder (whether on the Effective Date or on a later Credit Date) shall  evidence the satisfaction of the foregoing conditions.        Section 5.2 Conditions  to  Term  Loan  and  Each  Credit  Extension.   The  obligation  of  each  Revolving Lender to fund its Revolving Commitment Percentage of any Credit Extension on any Credit  Date, including the Effective Date, and the obligation of each Term Lender to fund its portion of the Term  Loan on any Credit Date, are subject to the satisfaction, or waiver in accordance with Section 11.4, of the  following conditions precedent:              (a)    the  Administrative  Agent  shall  have  received  a  fully  executed  and  delivered        Funding Notice, together with the documentation and certifications required therein with respect to        each Credit Extension or the Term Loan, as applicable;               (b)   after making the Credit Extension requested on such Credit Date, (i) the aggregate        outstanding  principal  amount  of  the  Revolving  Loans  shall  not  exceed  the  lesser  of  (A)  the        aggregate Revolving Commitments then in effect, and (B) the Borrowing Base as of such Credit        Date, and (ii) if such Credit Extension is the advance of the Term Loan, the aggregate principal        amount of the Term Loan shall not exceed the Borrowing Base as of such Credit Date;                                          77 

 

             (c)   as of such Credit Date or the Effective Date, as applicable, the representations and        warranties  contained  herein  and  in  the  other  Credit  Documents  shall  be  true  and  correct  in  all        material respects on and as of that date to the same extent as though made on and as of that date        (with any representations and warranties which are subject to a materiality qualifier being true and        correct  in  all  respects  in  accordance  with  the  terms  thereof),  except  to  the  extent  such        representations  and  warranties  specifically  relate  to  an  earlier  date,  in  which  case  such        representations and warranties shall have been true and correct in all material respects on and as of        such earlier date;               (d)   as of such Credit Date or the Effective Date, as applicable, no event shall have        occurred  and  be  continuing  or  would  result  from  the  consummation  of  the  applicable  Credit        Extension or the making of the Term Loan that would constitute an Event of Default or a Default;        and               (e)   all of the conditions precedent set forth in Section 5.1 shall have been satisfied on        or prior to such Credit Date or the Effective Date, as applicable.  The  Administrative  Agent  or  the  Required  Lenders  shall  be  entitled,  but  not  obligated  to,  request  and receive, prior to the making of any Credit Extension, additional information reasonably satisfactory to the requesting party confirming the satisfaction of any of the foregoing if, in the reasonable good faith judgment of such Administrative Agent or Required Lenders, such request is warranted under the circumstances.                  Section 6   REPRESENTATIONS AND WARRANTIES         In order to induce the Administrative Agent and the Lenders to enter into this Agreement and to make each Credit Extension to be made thereby and to make the Term Loan on the Effective Date, the Borrower, Parent and each other Credit Party, as applicable, represents and warrants to the Administrative Agent and each of the Lenders, on the Effective Date that:         Section 6.1 Organization; Requisite Power and Authority; Qualification.  Each Credit Party  and each Unencumbered Property Owner  (a) is duly organized, validly existing and in good standing under  the laws of its jurisdiction of organization as identified in Schedule 6.1, (b) has all requisite power and  authority to own and operate its properties, to carry on its business as now conducted and as proposed to be  conducted, (c) as to each Credit Party only, to enter into the Credit Documents to which it is a party and to  carry out the transactions contemplated thereby, and (d) is qualified to do business and in good standing in  every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where  the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have,  a Material Adverse Effect.         Section 6.2 Capital Stock  and  Ownership.   Schedule  6.2  correctly  sets  forth  the  ownership  interest of the Borrower in its Subsidiaries as of the Effective Date.  The Capital Stock of each Credit Party  and its Subsidiaries has been duly authorized and validly issued and, to the extent applicable, is fully paid  and non-assessable.  Except as set forth on Schedule 6.2, as of the Effective Date, there is no existing option,  warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement  to which any Subsidiary is a party requiring, and there is no membership interest or other Capital Stock of  any  Subsidiary  outstanding  which  upon  conversion  or  exchange  would  require,  the  issuance  by  any  Subsidiary  of  any  additional  membership  interests  or  other  Capital  Stock  of  any  Subsidiary  or  other  Securities  convertible  into,  exchangeable  for  or  evidencing  the  right  to  subscribe  for  or  purchase,  a  membership interest or other Capital Stock of any Subsidiary.                                          78 

 

     Section 6.3 Due  Authorization.   The  execution,  delivery  and  performance  of  the  Credit Documents have been duly authorized by all necessary action on the part of each Credit Party that is a party thereto.        Section 6.4 No Conflict.  The  execution, delivery and performance by Credit  Parties of the Credit Documents to which they are parties and the consummation of the transactions contemplated by the Credit Documents do not and will not: (a) violate in any material respect any provision of any Applicable Laws relating to any Credit Party, any of the Organizational Documents of any Credit Party, or any order, judgment or decree of any court or other agency of government binding on any Credit Party; (b) except as would not reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any other Contractual Obligations of any Credit Party; (c) result in or require the creation or imposition of any Lien upon any of the properties or assets of any Credit Party (other than any Liens created under any of the Credit Documents in favor of the Administrative Agent for the benefit of the holders of the Obligations) whether now owned or hereafter acquired; or (d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of any Credit Party (other than those which have already been obtained or to the extent the failure to obtain any such approval or consent would not reasonably be expected to have a Material Adverse Effect).        Section 6.5 Governmental Consents.  The execution, delivery and performance by the Credit Parties  of  the  Credit  Documents  to  which  they  are  parties  and  the  consummation  of  the  transactions contemplated  by  the  Credit  Documents  do  not  and  will  not  require,  as a  condition  to the  effectiveness thereof,  any  registration  with,  consent  or  approval  of,  or  notice  to,  or  other  action  to,  with  or  by,  any Governmental Authority except for any filings, recordings or consents which heretofore have been obtained or made, as applicable.        Section 6.6 Binding Obligation.  Each Credit Document has been duly executed and delivered by each Credit Party that is a party thereto and is the legally valid and binding obligation of such Credit Party,  enforceable  against  such  Credit  Party  in  accordance  with  its  respective  terms,  except  as  may  be limited by Debtor Relief Laws or by equitable principles relating to enforceability.        Section 6.7 Financial Statements.              (a)   The audited consolidated balance sheet of the Parent and its Subsidiaries for the       most recent Fiscal Year ended, and the related consolidated statements of income or operations,       shareholders’  equity  and  cash  flows  for  such  fiscal  year,  including  the  notes  thereto  (i)  were       prepared in accordance with GAAP consistently applied throughout the period covered thereby,       except  as  otherwise  expressly  noted  therein;  and  (ii)  fairly  present  in  all  material  respects  the       financial condition of the Consolidated Parties as of the date thereof and their results of operations       for the period covered thereby in accordance with GAAP consistently applied throughout the period       covered thereby, except as otherwise expressly noted therein.              (b)   The unaudited consolidated balance sheet of the Parent and its Subsidiaries for the       most recent Fiscal Quarter ended, and the related consolidated statements of income or operations,       shareholders’ equity and cash flows for such Fiscal Quarter (i) were prepared in accordance with       GAAP consistently applied throughout the period covered thereby, except as otherwise expressly       noted therein, (ii) fairly present the financial condition of the Consolidated Parties as of the date       thereof and their results of operations for the period covered thereby, subject, in the case of clauses       (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments, and (iii) show all       material indebtedness and other liabilities, direct or contingent, of the Consolidated Parties as of                                         79 

 

     the  date  of  such  financial  statements,  including  liabilities  for  taxes,  material  commitments  and      Indebtedness.              (c)   The consolidated pro forma balance sheet of the Borrower and its Subsidiaries as       the date of the formation of the Parent, and the related consolidated pro forma statements of income       and cash flows of the Borrower and its Subsidiaries for the period covered thereby, with a Financial       Officer  Certification,  copies  of  which  have  been  furnished  to  each  Lender,  fairly  present  the       consolidated and consolidating pro forma financial condition of the Borrower and its Subsidiaries       as  at  such  date  and  the  consolidated  pro  forma  results  of  operations  of  the  Borrower  and  its       Subsidiaries for such period, all in accordance with GAAP.              (d)   The annual operating budget consisting of statements of income or operations and       cash flows and other information for each of the Unencumbered Pool Properties (or any Real Estate       Assets or other properties proposed to be included as Unencumbered Pool Properties) supporting       pro forma covenant compliance calculations hereunder and delivered prior to the Effective Date or       otherwise pursuant to Section 7.1(d) were prepared in good faith on the basis of the assumptions       stated therein, which assumptions were fair in light of the conditions existing at the time of delivery       of such statements or other information, and represented, at the time of delivery, the Borrower’s       reasonable estimate of the future income, operations or cash flows for such Unencumbered Pool       Properties (or other Real Estate Assets or other properties).        Section 6.8 No Material Adverse Effect; No Default.              (a)   No Material Adverse Effect.  Since December 31, 2017, no event, circumstance or       change has occurred that has caused or evidences, either in any case or in the aggregate, a Material       Adverse Effect.              (b)   No Default.  No Default has occurred and is continuing.        Section 6.9 Tax Matters.  Each Credit Party and its Subsidiaries have filed all federal, state and other material tax returns and reports required to be filed, and have paid all federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective properties, assets, income, businesses and franchises otherwise due and payable, except those being actively contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP.  There is no proposed tax assessment against any Credit Party or any of its Subsidiaries that would, if made, have a Material Adverse Effect.        Section 6.10 Properties.              (a)   Title.  Each of the Credit Parties and its Subsidiaries has (i) good, insurable and       fee simple title to (in the case of fee interests in real property), (ii) valid leasehold interests in (in       the case of leasehold interests in real or personal property), and (iii) good title to (in the case of all       other personal property), all of their respective properties and assets (including without limitation       each  of  the  Unencumbered  Pool  Properties)  reflected  in  their  financial  statements  and  other       information referred to in Section 6.7 and in the most recent financial statements delivered pursuant       to Section 7.1, in each case except for assets disposed of since the date of such financial statements       as permitted under Section 8.10.  All such properties and assets are free and clear of Liens other       than Permitted Liens.                                         80 

 

            (b)   Real Estate Assets.  As of the Effective Date, Schedule 6.10(b) contains a true,       accurate and complete list of all Real Estate Assets of the Credit Parties and the Unencumbered       Property Owners.              (c)   Intellectual Property.  Each of the Credit Parties and its Subsidiaries owns or is       validly  licensed  to  use  all  Intellectual  Property  that  is  necessary  for  the  present  conduct  of  its       business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of       any other Person unless the failure to own or benefit from such valid license could not, individually       or in the aggregate, reasonably be expected to have a Material Adverse Effect.  To the knowledge       of each Credit Party, no Credit Party nor any of its Subsidiaries is infringing,  misappropriating,       diluting,  or otherwise  violating the Intellectual Property rights  of any other Person unless such       infringement, misappropriation, dilution  or violation could not, individually or in the aggregate,       reasonably be expected to have a Material Adverse Effect.        Section 6.11 Environmental Matters.  No Credit  Party nor any of its Subsidiaries nor any of their  respective  current  Facilities  (solely  during  and  with  respect  to  Person’s  ownership  thereof)  or operations, and to their knowledge, no former Facilities (solely during and with respect to any Credit Party or its Subsidiary’s ownership thereof), is or are subject to any outstanding order, ongoing consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; (b) no Credit Party nor any of its Subsidiaries has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and  Liability  Act  (42  U.S.C.  §  9604)  or  any  comparable  state  law;  (c)  to  each  Credit  Party’s  and  its Subsidiaries’ knowledge after due inquiry, there are no, and have been no, Hazardous Materials Activities which could reasonably be expected to form the basis of an Environmental Claim against such Credit Party or any of its Subsidiaries that, individually  or in the aggregate, could reasonably be expected to have a Material Adverse Effect; (d)  no Credit Party nor any  of its  Subsidiaries  has filed any  notice under any Environmental  Law  indicating  past  or  present  treatment  of  Hazardous  Materials  at any  Facility  (solely during  and  with  respect  to  such  Credit  Party  or  its  Subsidiary’s  ownership  thereof),  and  neither  the Borrower’s nor any of its Subsidiaries’ operations involves the generation, transportation, treatment, storage or  disposal  of  hazardous  waste,  as  defined  under  40 C.F.R.  Parts  260-270  or any  equivalent  state  rule defining  hazardous  waste.   Compliance  by  the  Credit  Parties  and  their  respective  Subsidiaries  with  all current requirements pursuant to or under Environmental Laws could not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.        Section 6.12 No  Defaults.   No  Credit  Party  nor  any  of  its  Subsidiaries  is  in  default  in  the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations (other than Contractual Obligations relating to Indebtedness), except in each case where the consequences, direct or indirect, of such default or defaults, if any, could not reasonably be expected to have a Material Adverse Effect.        Section 6.13 No Litigation or other Adverse Proceedings.  There are no Adverse Proceedings that  (a)  purport  to  affect  or  pertain  to  this  Agreement  or  any  other  Credit  Document,  or  any  of  the transactions contemplated hereby or (b) could reasonably be expected to have a Material Adverse Effect. Neither  the  Borrower  nor  any  of  its  Subsidiaries  is  subject  to  or  in  default  with  respect  to  any  final judgments,  writs,  injunctions,  decrees,  rules  or  regulations  of  any  Governmental  Authority  that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.        Section 6.14 Information Regarding the Borrower and its Subsidiaries.  Set forth on Schedule 6.14, is the jurisdiction of organization, the exact legal name (and for the prior five years or since the date                                         81 

 

of its formation has been) of the Borrower and each of its Subsidiaries and the true and correct U.S. taxpayer identification number (or foreign equivalent, if any) of the Borrower, in each case as of the Effective Date.        Section 6.15 Governmental Regulation.               (a)   No  Credit  Party  nor  any  of  its  Subsidiaries  is  subject  to  regulation  under  the        Investment Company Act of 1940.  No Credit Party nor any of its Subsidiaries is an “investment        company”  or  a  company  “controlled”  by  a  “registered  investment  company”  or  a  “principal        underwriter” of a “registered investment company” as such terms are defined in the Investment        Company Act of 1940.               (b)   No Credit Party nor any of its Subsidiaries is an “enemy” or an “ally of the enemy”        within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America        (50 U.S.C. App. §§ 1 et seq.).  To its knowledge, no Credit Party nor any of its Subsidiaries is in        violation of (a) the Trading with the Enemy Act, (b) any of the foreign assets control regulations        of  the  United  States  Treasury  Department  (31  CFR,  Subtitle  B,  Chapter  V)  or  any  enabling        legislation or executive order relating thereto or (c) the Patriot Act.  No Credit Party nor any of its        Subsidiaries (i) is a blocked person described in Section 1 of the Anti-Terrorism Order or (ii) to its        knowledge,  engages  in  any  dealings  or  transactions,  or  is  otherwise  associated,  with  any  such        blocked person.               (c)   None of the Credit Parties or their Subsidiaries or their respective Affiliates is in        violation of any of the country or list based economic and trade sanctions administered and enforced        by OFAC that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/ or        as otherwise published from time to time.               (d)   None of the Credit Parties or their Subsidiaries or their respective Affiliates (i) is        a Sanctioned Person or a Sanctioned Entity, (ii) has any of its assets located in Sanctioned Entities,        or (iii) derives any of its operating income from investments in, or transactions with Sanctioned        Persons or Sanctioned Entities.  The proceeds of any Loan will not be used and have not been used        to fund any operations  in, finance any  investments  or activities  in  or make any payments to, a        Sanctioned Person or a Sanctioned Entity.               (e)   Each Credit Party and its Subsidiaries is in compliance with the Foreign Corrupt        Practices Act, 15 U.S.C. §§ 78dd-1, et seq., and any foreign counterpart thereto.  None of the Credit        Parties  or  their  respective  Subsidiaries  has  made  a  payment,  offering,  or  promise  to  pay,  or        authorized the payment of, money or anything of value or has used or will use the proceeds of any        Loan (a) in order to assist in obtaining or retaining business for or with, or directing business to,        any foreign official, foreign political party, party official or candidate for foreign political office,        (b) to a foreign official, foreign political party or party official or any candidate for foreign political        office, and (c) with the intent to induce the recipient to misuse his or her official position to direct        business  wrongfully  to  such  Credit  Party  or  any  of  its  Subsidiaries  or  to  any  other  Person,  in        violation of the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et seq.               (f)   To the extent applicable, each Credit Party and its Subsidiaries are in compliance        with Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and        Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time, the “Patriot Act”).               (g)   No Credit Party or any of its Subsidiaries is engaged principally, or as one of its        important activities, in the business of extending credit for the purpose of purchasing or carrying        any Margin Stock.  No part of the proceeds of the Loans made to such Credit Party will be used to                                         82 

 

      purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing       or carrying any such Margin Stock or for any purpose that  violates,  or is inconsistent with,  the       provisions of Regulation T, U or X of the FRB as in effect from time to time.  Notwithstanding anything to the contrary contained in this Section 6.15, no representation or warranty is  made with respect to any Person (other than a Credit Party or a Related Party with respect to a Credit Party)  that owns or holds Capital Stock of the Parent or the Borrower or any of their respective Subsidiaries or  Affiliates.         Section 6.16 Employee Matters.  No Credit Party nor any of its Subsidiaries is engaged in any  unfair labor practice that could reasonably be expected to have a Material Adverse Effect.  There is (a) no  unfair labor practice complaint pending against any Credit Party or any of its Subsidiaries, or to the best  knowledge of each Credit Party, threatened against any of them before the National Labor Relations Board  and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that  is so pending against any Credit Party or any of its Subsidiaries or to the best knowledge of each Credit  Party, threatened against any of them, (b) no strike or work stoppage in existence or to the knowledge of  each Credit Party, threatened that involves any Credit Party or any of its Subsidiaries, and (c) to the best  knowledge of each Credit Party, no union representation question existing with respect to the employees of  any  Credit  Party  or  any  of  its  Subsidiaries  and,  to  the  best  knowledge  of  each  Credit  Party,  no  union  organization activity that is taking place, except (with respect to any matter specified in clause (a), (b) or  (c)  above,  either  individually  or  in  the  aggregate)  such  as  could  not  reasonably  be  expected  to  have  a  Material Adverse Effect.         Section 6.17 Pension Plans.  (a) Except as could not reasonably be expected to have a Material  Adverse  Effect,  each  of  the  Credit  Parties  and  their  Subsidiaries  are  in  compliance  with  all  applicable  provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published  interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under  each Pension Plan in all material respects, (b) each Pension Plan which is intended to qualify under Section  401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a  favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified  and, to the best knowledge of the Credit Parties, nothing has occurred subsequent to the issuance of such  determination letter which would cause such Pension Plan to lose its qualified status except where such  event  could  not  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect,  (c)  except  as  could  not  reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required  premium payments), the  Internal Revenue Service, any Pension Plan (other than for routine claims and  required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has  been incurred by any Credit Party, any of its Subsidiaries or any of their ERISA Affiliates, (d) except as  would not reasonably be expected to have a Material Adverse Effect, no ERISA Event has occurred, and  except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 et seq. of  ERISA or similar state laws and except as could not reasonably be expected to have a Material Adverse  Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise)  for any retired or former employee of any Credit Party or any of their Subsidiaries.         Section 6.18 Solvency.  The Borrower, the Parent and the other Credit Parties, individually and  taken as a whole, are, and on each Credit Date will be, Solvent.         Section 6.19 Compliance with Laws.  Each Credit Party and its Subsidiaries is in compliance  with (a) the Patriot Act and OFAC rules and regulations as provided in Section 6.15 and (b) except such  noncompliance with such other Applicable Laws that, individually or in the aggregate, could not reasonably  be expected to result in a Material Adverse Effect, all other Applicable Laws.  Each Credit Party and its  Subsidiaries  possesses  all  certificates,  authorities  or  permits  issued  by  appropriate  Governmental                                         83 

 

Authorities necessary to conduct the business now operated by them and the failure of which to have could reasonably be expected to have a Material Adverse Effect and have not received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit the failure of which to have or retain could reasonably be expected to have a Material Adverse Effect.  The information included in the Beneficial Ownership Certification is true and correct in all respects.        Section 6.20 Disclosure.  No representation or warranty of any Credit Party contained in any  Credit Document or in any other documents, certificates or written statements furnished to the Lenders by  or  on  behalf  of  the  Borrower  or  any  of  its  Subsidiaries  for  use  in  connection  with  the  transactions  contemplated  hereby  (other  than  projections  and  pro  forma  financial  information  contained  in  such  materials) contains any untrue statement of a material fact or omits to state a material fact (known to any  Credit Party, in the case of any document not furnished by any of them) necessary in order to make the  statements contained herein or therein not misleading in any material manner in light of the circumstances  in which the same  were  made.  Any projections and pro forma financial information contained in such  materials  are  based  upon  good  faith  estimates  and  assumptions  believed  by  the  Credit  Parties  to  be  reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such  projections as to future events are not to be viewed as facts and that actual results during the period or  periods covered by any such projections may differ from the projected results and that such differences may  be material.  There are no facts known to any Credit Party (other than matters of a general economic nature)  that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect  and that have not been disclosed herein or in such other documents, certificates and statements furnished to  the Lenders.         Section 6.21 Insurance; No Casualty or Condemnation.  The properties of the Credit Parties and  their  Subsidiaries  are  insured  with  financially  sound  and  reputable  insurance  companies  that  are  not  Affiliates  of  such  Persons,  in  such  amounts,  with  such  deductibles  and  covering  such  risks  as  are  customarily carried by companies engaged in similar businesses and owning similar properties in localities  where the applicable Credit Party or the applicable Subsidiary operates.  As of the Effective Date, to the  best of Borrower’s knowledge no uninsured casualty has occurred and no condemnation or condemnation  proceeding shall have been instituted with respect to any of the Real Estate Assets owned by each Credit  Party and its Subsidiaries.         Section 6.22 Healthcare Facility Representations and Warranties.               (a)   Compliance With Healthcare Laws.  Without  limiting  the generality of Section        6.19  hereof  or  any  other  representation  or  warranty  made  herein,  no  Credit  Party  and,  to  the        knowledge of the Credit Parties, no Tenant, is in material violation of any applicable statutes, laws,        ordinances, rules and regulations of any Governmental Authority with respect to regulatory matters        primarily relating to patient healthcare (including without limitation Section 1128B of the Social        Security Act, as amended, 42 U.S.C. Section 1320a 7b (Criminal Penalties Involving Medicare or        State Health Care Programs), commonly referred to as the “Federal Anti-Kickback Statute,” and        Section  1877  of  the  Social  Security  Act,  as  amended,  42  U.S.C.  Section  1395nn  (Prohibition        Against  Certain  Referrals),  commonly  referred  to  as  “Stark  Statute”  (collectively,  “Healthcare        Laws”) where such violation would result in a Material Adverse Effect.  The Credit Parties and, to        the knowledge of the Credit Parties, each of the Tenants, have maintained in all material respects        all records required to be  maintained by the Food and Drug Administration, Drug Enforcement        Agency and State Boards of Pharmacy and the federal and state Medicare and Medicaid programs        as required by the Healthcare Laws and, to the knowledge of the Credit Parties, there are no notices        of material violations of the Healthcare Laws with respect to any Credit Party, any Tenant or any        of the Real Estate Assets owned by any Credit Party.                                          84 

 

            (b)   Licenses, Permits, and Certifications.                    (i)   To the knowledge of the Credit Parties and each Unencumbered Property             Owner, each Tenant has such permits, licenses, franchises, certificates and other approvals             or authorizations of Governmental Authorities as are necessary under applicable law  or             regulations to own its properties and to conduct its business and to receive reimbursement             under Medicare and Medicaid (including without limitation such permits as are required             under  such  federal,  state  and  other  health  care  laws,  and  under  such  HMO  or  similar             licensure laws and such insurance laws and regulations, as are applicable thereto), if the             failure  to  obtain  such  permits,  licenses,  franchises,  certificates  and  other  approvals  or             authorizations  could  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect.             Notwithstanding the foregoing, no Credit Party or Unencumbered Property Owner is the             owner of any licenses or permits required for the provision of Medical Services at any of             the Real Estate Assets owned by any Credit Party or Unencumbered Property Owner.                    (ii)  To the knowledge of the Credit Parties and the Unencumbered Property             Owners,  each  Tenant  has  all  Medicare,  Medicaid  and  related  agency  supplier  billing             number(s) and related documentation necessary to receive reimbursement from Medicare             and/or  Medicaid  for  any  Medical Service  furnished  by  such  Person  in  any  jurisdiction             where  it  conducts  business  if  the  failure  to  obtain  billing  number(s)  or  related             documentation could reasonably be expected to result in a Material Adverse Effect.  To the             knowledge of the Credit Parties and the  Unencumbered Property Owners, no Tenant is             currently  subject  to  suspension,  revocation,  renewal  or  denial  of  its  Medicare  and/or             Medicaid  certification,  supplier  billing  number(s),  or  Medicare  and/or  Medicaid             participation agreement(s).              (c)   HIPAA  Compliance.   No  Credit  Party  or  Unencumbered  Property  Owner  is  a       “covered entity” within the meaning of HIPAA.  In addition, to the knowledge of the Credit Parties,       no Credit Party or Unencumbered Property Owner is the subject of any civil or criminal penalty,       process,  claim,  action  or  proceeding,  or  any  administrative  or  other  regulatory  review,  survey,       process or proceeding (other than routine surveys or reviews conducted by any government health       plan or other accreditation entity) that could reasonably be expected to cause a Material Adverse       Effect.              (d)   Medical Services.   No Credit  Party or Unencumbered Property Owner is in the       business of providing Medical Services.        Section 6.23 REIT Status.  Commencing with the short taxable year ending December 31, 2013, the  Parent  has  been  organized  and operating  in  conformity  with  the  requirements  for  qualification  and taxation  as  a REIT.  The  Borrower  is  a  partnership  or  other  disregarded  entity  for  federal  income  tax purposes under the Internal Revenue Code.        Section 6.24 Unencumbered Pool Properties.  Schedule 6.24 (as updated pursuant to the terms hereof through the delivery of a Borrowing Base Certificate, including pursuant to Section 8.17) is, in all material respects, a true and complete list of (i) the street address of each Unencumbered Pool Property, (ii) the Unencumbered Property Owner which owns or leases, pursuant to an Eligible Ground Lease, each such Unencumbered Pool Property, (iii) the facility type of each such Unencumbered Pool Property, (iv) the name and address of the Approved Manager with respect to such Unencumbered Pool Property (if such Unencumbered Pool Property is managed by a third-party property manager), and (iv) the Tenant Leases to which each such Unencumbered Pool Property is subject, together with the name and addresses of the applicable Tenants thereunder, the square footage demised to the applicable Tenants thereunder and the                                        85 

 

termination dates thereof.  Each parcel of real property identified on Schedule 6.24 is a Real Estate Asset  that qualifies as an Unencumbered Pool Property pursuant to the terms hereof.  To the extent any such  Unencumbered  Pool  Property  is  leased  by  an  Unencumbered  Property  Owner  pursuant  to  an  Eligible  Ground Lease, (i) such Eligible Ground Lease is in full force and effect and remains unmodified except to  the  extent  expressly  permitted  by  Section  7.13(b)(vii);  (ii)  except  as  expressly  permitted  by  Section  7.13(b)(vii), no rights in favor of the applicable Unencumbered Property Owner lessee have been waived,  canceled or surrendered; (iii) except as expressly permitted by Section 7.13, no election or option under  such Eligible Ground Lease has been exercised by the Unencumbered Property Owner ground lessee (other  than  options  to  renew  or  extend  the  term  thereof);  (iv)  all  rental  and  other  charges  due  and  payable  thereunder have been paid in full (except to the extent such payment is not yet overdue subject to applicable  cure or grace periods); (v) no  Unencumbered Property Owner is in default under such Eligible Ground  Lease (beyond any applicable cure or grace periods) which would permit the applicable ground lessor to  terminate or exercise any other remedy with respect to the applicable Eligible Ground Lease, nor has any  Unencumbered Property Owner received any notice of default with respect to such Eligible Ground Lease  that  has  not  been  delivered  to  the  Administrative  Agent  pursuant  to  Section  7.13(b)(viii);  (vi)  to  the  knowledge of the Unencumbered Property Owners, the ground lessor under such Eligible Ground Lease is  not in default with respect to its material obligations thereunder; (vii) a true and correct copy of such Eligible  Ground Lease (together with any amendments,  modifications, restatements  or supplements  thereof) has  been delivered to the Administrative Agent; and (viii) there exist no adverse claims as to the applicable  Unencumbered Property Owner’s title or right to possession of the leasehold premises referenced in such  Eligible Ground Lease.                       Section 7   AFFIRMATIVE COVENANTS         Each Credit Party covenants and agrees that until the date on which the Obligations shall have been paid in full or otherwise satisfied (other than with respect to contingent  indemnification obligations for which  no  claim  has  been  made  and  Letters  of  Credit  that  have  been  Cash  Collateralized  and  other obligations of each Credit Party hereunder or under any other Credit Document which, by their express terms, survive such payment in full or satisfaction), and the Commitments hereunder shall have expired or been terminated (such date, the “Termination Date”), such Credit Party shall perform, and shall cause each  of its Subsidiaries to perform, all covenants in this Section 7.         Section 7.1 Financial Statements and Other Reports.  The Borrower will deliver, or will cause  to be delivered, to the Administrative Agent (on behalf of the Lenders):              (a)    Quarterly  Financial  Statements  for  the  Parent  and  its Subsidiaries.   As  soon  as        available and in no event later than the earlier of (i) the date that is forty-five (45) days after the        end of each Fiscal Quarter of each Fiscal Year (excluding the fourth Fiscal Quarter), or (ii) the date        that is ten (10) days after the filing of Parent’s Quarterly Report on Form 10-Q with the SEC for        such  Fiscal  Quarter,  the  consolidated  and  consolidating  balance  sheets  of  the  Parent  and  its        Subsidiaries as at the end of such Fiscal Quarter and the related consolidated and consolidating        statements of income, stockholders’ equity and cash flows of the Parent and its Subsidiaries for        such Fiscal Quarter and for the period from the beginning of the then current Fiscal Year to the end        of such Fiscal Quarter, setting forth in each case in comparative form the corresponding figures for        the  corresponding  periods of  the  previous  Fiscal Year, all  in  reasonable  detail,  together  with  a        Financial Officer Certification with respect thereto;               (b)   Audited Annual Financial Statements for the Parent and its Subsidiaries.  As soon        as available and in no event later than the earlier of (x) the date that is ninety (90) days after the        end of each Fiscal Year, or (y) the date that is ten (10) days after the filing of Parent’s Annual        Report on Form 10-K with the SEC for such Fiscal Year, (i) the consolidated and consolidating                                         86 

 

balance sheets of the Parent and its Subsidiaries as at the end of such Fiscal Year and the related consolidated and consolidating statements of income, stockholders’ equity and cash flows of the Parent and its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the corresponding figures for the previous Fiscal Year, in reasonable detail, together with a Financial Officer  Certification  with  respect  thereto;  and  (ii)  with  respect  to  such  consolidated  financial statements a report thereon of Ernst & Young LLP or other independent certified public accountants of recognized national standing selected by the Parent, which report shall be unqualified as to going concern and scope of audit, and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Parent and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated in  conformity  with  GAAP  applied  on  a  basis  consistent  with  prior  years  (except  as  otherwise disclosed in such financial statements) and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards);         (c)   Compliance  Certificate;  Borrowing  Base  Certificate;  Quarterly  Operating  Statements for Unencumbered Pool Properties.               (i)   Together with each delivery of the financial statements pursuant to clauses        (a) and (b) of Section 7.1, a duly completed Compliance Certificate (including all back-up        calculations); and               (ii)  Together with each delivery of the financial statements pursuant to clauses        (a) and (b) of Section 7.1, and/or within ten (10) Business Days after written request from        the Administrative Agent, (A) a duly completed Borrowing Base Certificate, and (B) if        requested by the Administrative Agent, quarterly operating statements (detailing current        quarter  and  same  period  prior  year,  year  to  date,  and  trailing 12-month  profit  and  loss        summary), occupancy information, a rent roll (including rental rate and lease expiration        detail) and other information required to calculate Net Operating Income for each of the        then-existing Unencumbered Pool Properties;         (d)   Annual Budget;  Actual Capital Expenditures.  As soon as available,  but  in any  event on or prior March 1st of each calendar year, and in each case reasonably acceptable to the Administrative Agent (i) quarterly forecasts prepared by management of the Parent or the Borrower of consolidated balance sheets and statements of income or operations and cash flows of the Parent and its Subsidiaries for the Fiscal Year beginning on January 1st of such year and (ii) an annual  operating  budget  consisting  of  statements  of  income  or  operations  and  cash  flows  and  other  information  for  each  of  the  Unencumbered  Pool  Properties  supporting  pro  forma  covenant  compliance  calculations  hereunder,  for  the  Fiscal  Year  beginning  on  January  1st  of  such  year  (including the Fiscal Year in which the Revolving Commitment Termination Date shall occur and  the Fiscal Year in which the Term Maturity Date shall occur).  In addition, as soon as available, but  in  any  event  on  or  prior  to  March  1st  of  each  calendar  year,  Borrower  will  deliver  to  the Administrative Agent and the Lenders statements reflecting actual capital expenditures for each of the Unencumbered Pool Properties, in each case for the most recent Fiscal Year then ended;        (e)    Information  Regarding  Credit  Parties.   Each  Credit  Party  will  furnish  to  the  Administrative Agent prompt written notice of any change (i) in such Credit Party’s legal name,  (ii)  in  such  Credit  Party’s  corporate  structure,  or  (iii)  in  such  Credit  Party’s  Federal  Taxpayer  Identification Number;                                    87 

 

      (f)   SEC  Filings.   Promptly  after  the  same  are  filed,  copies  of  all  annual,  regular, periodic and special reports and registration statements that the Parent may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, provided that any documents required to be delivered pursuant to this Section 7.1(f) shall be deemed to have been delivered on the date (i) on which the Parent posts such documents, or provides a link thereto on the Parent’s website; or (ii) on which such documents are posted on the Borrower’s behalf on Debtdomain or another relevant website, if any to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided further that: (x) upon written request by the Administrative Agent, the Borrower shall deliver paper copies of such documents to the Administrative Agent for further distribution to each Lender until a written request to cease delivering paper copies is given by the Administrative Agent and (y) the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the posting of any such documents and, upon written request by the Administrative Agent, provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything to the contrary, as to any information contained in materials furnished pursuant to this Section 7.1(f), the Borrower shall not be separately required to furnish such information under Sections 7.1(a) or (b) above or pursuant to any other requirement of this Agreement or any other Credit Document.        (g)   Notice of Default and Material Adverse Effect.  Promptly upon any Authorized Officer of any Credit Party obtaining knowledge (i) of any condition or event (including, without limitation, any Adverse Proceeding) that constitutes a Default or an Event of Default or that notice has been given to any Credit Party with respect thereto; (ii) that any Person has given any notice to any Credit Party or any of its Subsidiaries or taken any other action with respect to any event or condition  set  forth  in  Section  9.1(b),  or  (iii)  the  occurrence  of  any  Material  Adverse  Effect,  a certificate  of  its  Authorized  Officers  specifying  the  nature  and  period  of  existence  of  such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, event or condition or change, and what action the Credit Parties have taken, are taking and propose to take with respect thereto;        (h)   ERISA.  (i) Promptly upon becoming aware of the occurrence of or forthcoming occurrence of any ERISA Event, a written notice specifying the nature thereof, what action any Credit Party, any of its Subsidiaries or any of their respective ERISA Affiliates has taken, is taking or proposes to take with respect thereto and, when known, any action taken or threatened in writing by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and (ii) (1) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by any Credit Party, any of its Subsidiaries or any of their respective ERISA Affiliates with respect to each Pension Plan; and (2)  promptly  after  their  receipt,  copies  of  all  notices  received  by  any  Credit  Party,  any  of  its Subsidiaries  or  any  of  their  respective  ERISA  Affiliates  from  a  Multiemployer  Plan  sponsor concerning an ERISA Event;        (i)   SEC  Investigations.   Promptly, and in any event  within five (5) Business  Days after receipt thereof by any Credit Party or any Subsidiary thereof, copies of each notice or other correspondence  received  from  the  SEC  (or  comparable  agency  in  any  applicable  non-U.S. jurisdiction) concerning any investigation or possible investigation or other material inquiry (other than comment letters related to SEC filings) by such agency regarding financial or other operational results of any Credit Party or any Subsidiary thereof; and        (j)   Other  Information.   (i)  Promptly  upon  their  becoming  available,  copies  of  all financial statements, reports, notices and proxy statements and other communications sent or made                                  88 

 

     available generally by the Parent to its security holders acting in such capacity or by any Subsidiary      of the Parent to its security holders, if any, other than the Parent or another Subsidiary of the Parent,      provided that no Credit Party shall be required to deliver to the Administrative Agent or any Lender       the minutes of any meeting of its Board of Directors, and (ii) such other information and data with       respect to the Parent or any of its Subsidiaries as from time to time may be reasonably requested       by the Administrative Agent or the Required Lenders.        Each notice pursuant to clauses (g) and (h) of this Section 7.1 shall be accompanied by a statement of an Authorized Officer of the Borrower setting forth details of the  occurrence referred to therein and stating what action the Borrower and/or the other applicable Credit Party has taken and proposes to take with respect thereto.  Each notice pursuant to Section 7.1(g) shall describe with particularity any and all provisions of this Agreement and any other Credit Document that have been breached.        Section 7.2 Existence.  Each Credit Party will, and will cause each of its Subsidiaries to, at all times  preserve  and  keep  in  full  force  and  effect  (a)  its  existence  under  the  laws  of  its  jurisdiction  of formation or organization, and (b) all rights and franchises, licenses and permits material to its business, except in either case to the extent permitted by Section 8.10 or not constituting an Asset Sale hereunder.        Section 7.3 Payment of Taxes and Claims.  The Borrower, the Parent and each Unencumbered Property Owner will, and will cause each of its respective Subsidiaries to, pay (a) all federal, state and other material taxes imposed upon it or any of its properties or assets or in respect of any of its income, businesses or  franchises  before  any  penalty  or  fine  accrues  thereon  and  (b) all  claims  (including  claims  for  labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its  properties or assets, prior to the time  when any penalty  or fine shall be incurred with respect thereto; provided, no such tax or claim need be paid if it is being contested in good faith  by  appropriate  proceedings  promptly  instituted  and  diligently  conducted,  so  long  as  (i)  adequate reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made therefor, and (ii) as may be applicable at any time, in the case of a tax or claim which has or may become a Lien against any Unencumbered Pool Property, such contest proceedings conclusively operate to stay the sale of any portion of any such Unencumbered Pool Property to satisfy such tax or claim.  The Borrower will not, nor will it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income tax return with any Person (other than the Borrower or any Subsidiary).        Section 7.4 Maintenance  of  Properties.   Each  Credit  Party  will,  and  will  cause  each  of  its Subsidiaries to, maintain or cause to be maintained in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the business of any Credit Party and its Subsidiaries and from time to time will make or cause to be made all appropriate repairs, renewals and replacements thereof.        Section 7.5 Insurance.   The  Credit  Parties  will  maintain  or  cause  to  be  maintained,  with financially sound and reputable insurers,  property  insurance,  such public liability insurance,  third party property damage insurance with respect to liabilities, losses or damage in respect of the assets, properties and businesses of each Credit Party and its Subsidiaries as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons.  Each Credit Party and its Subsidiaries shall at all times comply in all material respects with the requirements of the insurance policies required hereunder and of the issuers of such  policies  and  of  any  board  of  fire  underwriters  or  similar  body  as  applicable  to  or  affecting  any Unencumbered Pool Property.                                         89 

 

     Section 7.6 Inspections.  Borrower, Parent and each Unencumbered Property Owner will, and will cause each of its respective Subsidiaries to, permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to conduct field audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that so long as no Event of Default exists, the Borrower shall not be obligated to pay for more than one (1) such inspection per year; provided, further, that when an Event of Default exists, the Administrative Agent or any  Lender  (or  any  of  their  respective  representatives  or  independent  contractors)  may  do  any  of  the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice.        Section 7.7 Lenders  Meetings.  The  Borrower  will,  upon  the  request  of the  Administrative Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once during each Fiscal Year to be held at the Borrower’s corporate offices (or at such other location as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent.        Section 7.8 Compliance with Laws and Material Contracts.  Each Credit Party will comply, and shall cause  each of its Subsidiaries and all other Persons,  if any,  on or occupying any Facilities to comply, with (a) the Patriot Act and OFAC rules and regulations, (b) all other Applicable Laws and (c) all Material Contracts, noncompliance with, with respect to clauses (b) and (c), could reasonably be expected to  have,  individually  or  in  the  aggregate,  a  Material  Adverse  Effect.   Promptly  following  any  request therefor,  the  Credit  Parties  shall  deliver  information  and  documentation  reasonably  requested  by  the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and  anti-money-laundering  rules  and  regulations,  including,  without  limitation,  the  Patriot  Act  and  the Beneficial Ownership Regulation.        Section 7.9 Use of Proceeds.  The Credit Parties will use the proceeds of the Credit Extensions and the Term Loan for (a) working capital, capital expenditures, payment of dividends and redemptions, and other lawful corporate purposes (including, but not limited to, the acquisition of Healthcare Facilities), and (b) to pay transaction fees, costs and expenses related to credit facilities established pursuant to this Agreement and the other Credit Documents, in each case not in contravention of Applicable Laws or of any Credit Document.  No portion of the proceeds of any Credit Extension or the Term Loan shall be used in any manner that causes or might cause such Credit Extension or the Term Loan or the application of such proceeds to violate Regulation T, Regulation U or Regulation X of the FRB as in effect from time to time or any other regulation thereof or to violate the Exchange Act.        Section 7.10 Environmental Matters.              (a)   Environmental Disclosure.  Each Credit Party will deliver to the Administrative       Agent and the Lenders with reasonable promptness, such documents and information as from time       to time may be reasonably requested by the Administrative Agent or any Lender.              (b)   Hazardous Materials Activities, Etc.  The Borrower shall promptly take, and shall       cause  each  of  its  Subsidiaries  promptly  to  take,  any  and  all  actions  necessary  to  (i)  cure  any       violation  of  applicable  Environmental  Laws  by  such Credit  Party  or  its  Subsidiaries  that  could       reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and       (ii) respond to any Environmental Claim against such Credit Party or any of its Subsidiaries and                                         90 

 

     discharge  any  obligations  it  may  have  to  any  Person  thereunder  where  failure  to  do  so  could      reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.       Section 7.11 Books  and  Records.   Each  Credit  Party  will  keep  proper  books  of  record  and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities to the extent necessary to prepare the consolidated financial statements of the Parent in conformity with GAAP.        Section 7.12 Additional Subsidiaries.        Subject to Section 7.12(c) below, within thirty (30) days after the occurrence of any event described in Section 7.12(b)(ii)(A) or (B) below with respect to any Material Subsidiary, the Borrower and the other Credit Parties shall:             (a)    RESERVED;             (b)    cause  such  Person  to  become  a  Guarantor  by  executing  and  delivering  to  the       Administrative  Agent  a  Guarantor  Joinder  Agreement  or  such  other  documents  as  the       Administrative  Agent  shall  deem  appropriate  for  such  purpose,  and  (ii)  deliver  to  the       Administrative Agent documents of the types referred to in Section 5.1(b), and favorable opinions       of counsel to such joining Guarantor (which shall cover, among other things, the legality, validity,       binding effect and enforceability of the documentation referred to in the immediately foregoing       clause  (i)),  all  in  form,  content  and  scope  reasonably  satisfactory  to  the  Administrative  Agent;       provided that the foregoing requirements of this clause (b) shall apply only if:                    (i)   RESERVED; or                    (ii)                          (A)   Such  Material  Subsidiary  which  is  an  Unencumbered  Property                   Owner, or any other Subsidiary that directly or indirectly own an Equity Interest                   in such Material Subsidiary, becomes obligated in respect of, any Indebtedness of                   Parent, the Borrower or any Subsidiary of the Parent or Borrower; or                          (B)   As to any other Material Subsidiary; such Material Subsidiary (or                   any  other  Subsidiary  that  directly  or  indirectly  own  an  Equity  Interest  in  such                   Material Subsidiary) Guarantees, or otherwise becomes obligated in respect of, any                   Indebtedness of Parent, the Borrower or any Subsidiary of the Parent or  Borrower,                   unless the terms of such Indebtedness prohibit the execution of such guaranty.              (c)   Notwithstanding the foregoing, no such Subsidiary shall be required to become a       Guarantor under Section 7.12(b)(ii)(B) if such Subsidiary (I) is an Excluded Subsidiary or a Foreign       Subsidiary, or (II) is expressly prohibited in writing from guaranteeing Indebtedness of any other       Person  pursuant  to  (x)  a  provision  in  any  document,  instrument  or  agreement  evidencing       Indebtedness or other material agreement of such Subsidiary, (y) a provision of such Subsidiary's       Organizational Documents to the extent required by another holder of the Capital Stock of such       Subsidiary  in  connection  with  the  formation  thereof  or  (z)  a  provision  of  such  Subsidiary's       Organizational  Documents,  which  provision  was  included  in  such  Organizational  Document  or       such  other  document,  instrument  or  agreement  as  an  express  condition  to  the  extension  of       Indebtedness to such Subsidiary by any of a third party creditor providing the subject financing,       any other third-party guarantor thereof or any rating agency in respect thereof, or was included in                                         91 

 

     such  Organizational  Documents  in  contemplation  of  such  Subsidiary’s  entering  into  any  such      Indebtedness or other material agreement;  provided,  that if (A) any Subsidiary qualifying as an       Excluded Subsidiary as of the date of its acquisition or formation ceases to qualify as an Excluded       Subsidiary, or (B) the applicable prohibition against guaranteeing Indebtedness of any other Person       shall no longer be in effect with respect to a Subsidiary that is or was not required to become a       Guarantor  under  clause  (II)  above,  the  Credit  Parties  shall  promptly  notify  the  Administrative       Agent that such Subsidiary no longer qualifies as an Excluded Subsidiary or that such prohibition       is no longer in effect with respect to such Subsidiary (as applicable), and the Credit Parties shall,       within thirty (30) days after the date that such Subsidiary ceases to so qualify or such prohibition       is no longer in effect with respect to such Subsidiary (or such later date, in  each case, with the       written  consent  of  the  Administrative  Agent),  cause  such  Subsidiary  to  become  a  Guarantor  in       accordance with the provisions of clause (b) of this Section 7.12 (unless, in the case of a Subsidiary       previously subject to a prohibition against guaranteeing Indebtedness, such Subsidiary otherwise       qualifies as an Excluded Subsidiary thereafter).              (d)   Without limiting the foregoing, but subject to Section 7.12(b), as a condition to the       inclusion  of  any  Real  Estate  Asset  owned  by  such  Subsidiary  in  the  Borrowing  Base  (if  such       Subsidiary is not already a Guarantor or is an Excluded Subsidiary or is not otherwise required to       become a Guarantor pursuant hereto), the Borrower and the other Credit Parties shall cause such       Subsidiary  to  become  a  Guarantor  and  deliver  such  documents  as  are  required  in  connection       therewith in accordance with the foregoing clause (b), in each case on or before the earlier of (A)       the date on which such Real Estate Asset owned by such Subsidiary is included in any calculation       (pro forma or otherwise) of the Borrowing Base and (B) the deadline for the delivery of the next       Borrowing Base Certificate.        Section 7.13 Unencumbered Pool Properties Subject to Eligible Ground Leases.  The Borrower (and each applicable Credit Party and/or Unencumbered Property Owner) shall, with respect to each Unencumbered Pool Property subject to an Eligible Ground Lease:             (a)    Make all payments and otherwise perform in all material respects all obligations       in respect of each such Eligible Ground Lease and keep each such Eligible Ground Lease in full       force and effect and not allow any such Eligible Ground Lease to lapse or be terminated or any       rights  to  renew  any  such  Eligible  Ground  Lease  to  be  forfeited  or  cancelled,  notify  the       Administrative Agent of any default by any party with respect to any such Eligible Ground Lease       and cooperate with the Administrative Agent in all respects to cure any such default, except, in any       case, where the failure to do so would not be reasonably likely to have a Material Adverse Effect.              (b)   Without limiting the foregoing, with respect to each Eligible Ground Lease related       to any Unencumbered Pool Property:                    (i)   pay  when  due  the  rent  and  other  amounts  due  and  payable  thereunder             (subject to applicable cure or grace periods);                    (ii)  timely  perform  and  observe  all  of  the  material  terms,  covenants  and             conditions required to be performed and observed by it as tenant thereunder (subject to             applicable cure or grace periods);                    (iii) do  all  things  necessary  to  preserve  and  keep  unimpaired  such  Eligible             Ground Lease and its material rights thereunder;                                         92 

 

     (iv)   not  waive,  excuse  or  discharge  any  of  the  material  obligations  of  the ground lessor or other obligor thereunder;        (v)   diligently and continuously enforce the material obligations of the ground lessor or other obligor thereunder;        (vi)  not do, permit or suffer any act, event or omission which would result in a default thereunder (or which, with the  giving of notice  or the passage  of time,  or both, would constitute a default thereunder), in  each case which would permit  the applicable ground  lessor  to  terminate  or  exercise  any  other  remedy  with  respect  to  such  Eligible Ground Lease;        (vii) cancel, terminate, surrender, modify or amend any of the provisions of any such  Eligible  Ground  Lease  or  agree  to  any  termination,  amendment,  modification  or surrender thereof if the effect of such cancellation, termination, surrender, modification, amendment or agreement is to (A) shorten the term of such Eligible Ground Lease, (B) increase the rent payable under such Eligible Ground Lease, (C) increase the purchase price under any purchase option concerning the property included in and subject to such Eligible Ground Lease, (D) modify the gross or net leasable area subject to such Eligible Ground Lease, (E) transfer to the ground lessee any costs and/or expenses previously paid by the ground lessor under such Eligible Ground Lease, (F) terminate (or grant the ground lessor additional rights to unilaterally terminate) such Eligible Ground Lease, or (G) subordinate the rights of the applicable Unencumbered Property Owner under such Eligible Ground Lease to any property manager, mortgagee or leasehold interest or any other Person, in each case without the prior written consent of the Administrative Agent;        (viii) deliver to the Administrative Agent all default and other material notices received by it or sent by it under the applicable Eligible Ground Lease;        (ix)  upon  Administrative  Agent’s  reasonable  written  request,  provide  to Administrative Agent any information or materials relating to such Eligible Ground Lease and evidencing such Unencumbered Property Owner’s due observance and performance of its material obligations thereunder;        (x)   not permit or consent to the subordination of such Eligible Ground Lease to  any  mortgage  or  other  leasehold  interest  of  the  premises  related  thereto,  unless  the Borrower  has  obtained  customary  non-disturbance  rights  in  connection  with  such subordination;        (xi)  execute and deliver (to the extent permitted to do so under such Eligible Ground Lease), upon the reasonable request of the Administrative Agent, any documents, instruments or agreements as may be required to permit the Administrative Agent to cure any default under such Eligible Ground Lease;        (xii) provide to Administrative Agent written notice of its intention to exercise any option or renewal or extension rights with respect to such Eligible Ground Lease or easement at least thirty (30) days prior to the expiration of the time to exercise such right or option and, unless the Borrower is removing such Real Estate as an Unencumbered Pool Property,  duly exercise any renewal or extension option with respect to any such Eligible Ground Lease or easement (either consistent with such notice or upon the direction of the Administrative Agent); provided, that each Credit Party (on its own behalf and on behalf                            93 

 

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

 

             Owner hereby further agrees that the Administrative Agent shall have the right, but not the              obligation, to proceed in respect of any claim, suit, action or proceeding relating to the              rejection of any of the Eligible Ground Leases referenced above by the relevant ground              lessor  or  obligor  as  a  result  of  bankruptcy  or  similar  proceedings  (including,  without              limitation, the right to file and prosecute all proofs of claims, complaints, notices and other              documents in any such bankruptcy case or similar proceeding); and                     (xviii) deliver to the Administrative Agent (and, if it has the ability pursuant to              the subject Eligible Ground Lease, cause the applicable ground lessor under such Eligible              Ground  Lease  to  deliver  to  the  Administrative  Agent)  an  estoppel  certificate  from  the              ground lessor in relation to such Eligible Ground Lease in form and substance acceptable              to the Administrative Agent, in its reasonable discretion, and, in any case, setting forth (A)              the  name  of  lessee  and  lessor  under  the  Eligible  Ground  Lease;  (B)  that  such  Eligible              Ground Lease is in full force and effect and has not been modified except to the extent              Administrative Agent has received notice of such modification; (C) that no rental and other              payments due thereunder are delinquent as of the date of such estoppel; and (D) whether              such  Person  knows  of  any  actual  or  alleged  defaults  or  events  of  default  under  the              applicable Eligible Ground Lease;               provided, that each applicable Credit Party hereby agrees to execute and deliver (or cause,        as to each Unencumbered Property Owner, the execution and delivery) to Administrative Agent,        within ten (10) Business Days of any request therefor, such documents, instruments, agreements,        assignments or other conveyances reasonably requested by the Administrative Agent in connection        with  or  in  furtherance  of  any  of  the  provisions  set  forth  above  or  the  rights  granted  to  the        Administrative Agent in connection therewith.         Section 7.14 RESERVED.         Section 7.15 REIT Status.         The Parent and the Borrower will, and will cause each of their respective Subsidiaries to, operate their businesses at all times so as to satisfy all requirements necessary for the Parent to qualify as a REIT, and the Parent shall maintain its status, and such election to be treated, as a REIT.  The Borrower shall at all times be a partnership or other disregarded entity for federal income tax purposes under the Internal Revenue Code.         Section 7.16 Leasing Matters Regarding Unencumbered Pool Properties.         The  Borrower  (or  the  applicable  Unencumbered  Property  Owner  with  respect  to  such Unencumbered Pool Property) (i) shall observe and perform the  material obligations imposed upon the landlord  under  the  Tenant  Leases  in  a  commercially  reasonable  manner;  (ii)  shall  enforce  the  terms, covenants and conditions contained in each Tenant Lease against the Tenant thereunder in a commercially reasonable manner, (iii) may amend or waive the terms, covenants and conditions contained in the Tenant Leases  in a commercially reasonable manner, (iv) shall, with regard to any Tenant Lease, not terminate any such Tenant Lease or accept a surrender of any such Tenant Lease except by reason of a tenant default or if otherwise commercially reasonable; (v) shall not collect any of the rents from Tenant Leases more than one (1) month in advance (other than security deposits); and (vi) shall not execute any assignment of lessor’s interest in the Tenant Leases or the rents from Tenant Lease.                                          95 

 

                       Section 8   NEGATIVE COVENANTS         Each Credit Party covenants and agrees that until the Termination Date, each Credit Party shall perform, and shall cause each of its Subsidiaries to perform, all covenants in this Section 8.         Section 8.1 Indebtedness.  No Credit Party shall, nor shall it permit any of its Subsidiaries to,  directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly  liable with respect to any Indebtedness, other than:              (a)    the Obligations, including the Guarantee of the Obligations by any Guarantors;              (b)    Indebtedness of any Credit Party or any Subsidiary of any Credit Party to any other        Credit Party or any other such Subsidiary so long as any such Indebtedness owing by any Credit        Party to any Subsidiary which is not a Credit Party shall be subordinated to the Obligations on        terms reasonably satisfactory to the Administrative Agent;               (c)   Guarantees of Indebtedness otherwise permitted under this Section 8.1;               (d)   Indebtedness existing on the Effective Date and described in Schedule 8.1, together        with any Permitted Refinancing thereof;               (e)   Indebtedness  with  respect  to  (x)  Capital  Leases  and  (y)  purchase  money        Indebtedness; provided, in the case of clause (x), that any such Indebtedness shall be secured only        by the asset subject to such Capital Lease, and, in the case of clause (y), that any such Indebtedness        shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness;        provided further that the sum of the aggregate principal amount of any Indebtedness under this        clause (e) shall not exceed at any time $1,000,000;               (f)   Indebtedness in respect of any Swap Contract that is entered into in the ordinary        course of business to hedge or mitigate risks to which any Credit Party or any of its Subsidiaries is        exposed in the conduct of its business or the management of its liabilities (it being acknowledged        by the Credit Parties that a Swap Contract entered into for speculative purposes or of a speculative        nature is not a Swap Contract entered into in the ordinary course of business to hedge or mitigate        risks);               (g)   Indebtedness arising in connection with the financing of insurance premiums  in        the ordinary course of business;               (h)   cash management obligations and other Indebtedness in respect of endorsements        for collection or deposit, netting services, overdraft protections and similar arrangements, in each        case, in connection with deposit accounts in the ordinary course of business;               (i)   Indebtedness representing deferred compensation to officers, directors, employees        of the Parent and its Subsidiaries;               (j)   Secured Recourse Indebtedness of any Credit Party or any Subsidiary (other than        any  Subsidiary  which  is  a  Guarantor  hereunder);  provided,  the  Credit  Parties  shall  be  in        compliance, on a pro forma basis after giving effect to such Recourse Indebtedness and related        transactions, with the financial covenants set forth in Section 8.8, recomputed as of the last day of        the most recently ended Fiscal Quarter of the Borrower for which financial statements have been        delivered pursuant to Section 7.1;                                          96 

 

            (k)   Unsecured Indebtedness of the Credit Parties and their Subsidiaries provided the       Credit Parties shall be in compliance, on a pro forma basis after giving effect to such Unsecured       Indebtedness  and  related  transactions,  with  the  financial  covenants  set  forth  in  Section  8.8,       recomputed as of the last day of the most recently ended Fiscal Quarter of the Borrower for which       financial statements have been delivered pursuant to Section 7.1; and              (l)   Non-Recourse Indebtedness of any Subsidiaries that are not, and are not required       to be, Credit Parties hereunder and are not Unencumbered Property Owners; provided, the Credit       Parties  shall  be  in  compliance,  on  a  pro  forma  basis  after  giving  effect  to  such  Non-Recourse       Indebtedness  and  related  transactions,  with  the  financial  covenants  set  forth  in  Section  8.8,       recomputed as of the last day of the most recently ended Fiscal Quarter of the Borrower for which       financial statements have been delivered pursuant to Section 7.1.        Section 8.2 Liens.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or permit to exist any Lien on or with respect to any property or asset of any kind (including any document or instrument in respect of goods or accounts receivable) of any Credit Party  or  any  of  its  Subsidiaries,  whether  now  owned  or  hereafter  acquired,  created  or  licensed  or  any income,  profits or royalties therefrom,  or file  or  permit  the filing  of,  or permit  to remain in  effect,  any financing statement or other similar notice of any Lien with respect to any such property, asset, income, profits or royalties under the UCC of any State or under any similar recording or notice statute or under any Applicable Laws related to intellectual property, except:             (a)    As may be applicable at any time, Liens in favor of the Administrative Agent for       the benefit of the holders of the Obligations granted pursuant to any Credit Document;              (b)   Liens for Taxes not yet due or for Taxes if obligations with respect to such Taxes       are being contested  in good faith by appropriate proceedings  promptly instituted and diligently       conducted;              (c)   statutory  Liens  of  landlords,  banks,  carriers,  warehousemen,  mechanics,       repairmen, workmen and materialmen, and other Liens imposed by law (other than any such Lien       imposed pursuant to Section 430(k) of the Internal Revenue Code or Section 303(k) or 4068 of       ERISA that would constitute an Event of Default under Section 9.1(j)), in each case incurred in the       ordinary course of business (i) for amounts not yet overdue, or (ii) for amounts that are overdue       and that are being contested in good faith by appropriate proceedings, so long as such reserves or       other appropriate provisions, if any, as shall be required by GAAP shall have been made for any       such contested amounts;              (d)   Liens  incurred  in  the  ordinary  course  of  business  in  connection  with  workers’       compensation,  unemployment  insurance  and  other  types  of  social  security,  or  to  secure  the       performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government       contracts, trade contracts, performance and return-of-money bonds and other similar obligations       (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no       foreclosure, sale or similar proceedings have been commenced with respect to any portion of the       subject Real Estate Asset on account thereof;              (e)   easements,  rights-of-way,  restrictions,  encroachments,  and  other  minor       encumbrances, defects or irregularities in title, in each case which do not and will not interfere in       any material respect with the ordinary conduct of the business  of any Credit Party or any of its       Subsidiaries, including, without limitation, all encumbrances shown on any policy of title insurance       in favor of the Administrative Agent with respect to any Real Estate Asset;                                        97 

 

      (f)   any  interest  or  title  of  a  lessor  or  sublessor  under  any  lease  of  real  estate  not prohibited hereunder (including the interests of any ground lessor under an Eligible Ground Lease respecting any Unencumbered Pool Property);        (g)   Liens solely on any cash earnest money deposits made by any Credit Party or any of  its  Subsidiaries  in  connection  with  any  letter  of  intent,  or  purchase  agreement  permitted hereunder;        (h)   purported  Liens  evidenced  by  the  filing  of  precautionary  UCC  financing statements  relating  solely  to  operating  leases  of  personal  property  entered  into  in  the  ordinary course of business;        (i)   Liens  in favor of customs  and revenue authorities  arising as a matter of law to secure payment of customs duties in connection with the importation of goods;        (j)   any zoning or similar law or right reserved to or vested in any governmental office or agency to control or regulate the use, operation or development of any real property;        (k)   licenses of patents, trademarks and other intellectual property rights granted by any Credit Party or any of its Subsidiaries in the ordinary course of business and not interfering in any respect with the ordinary conduct of the business of such Credit Party or such Subsidiary;        (l)   Liens existing as of the Effective Date and described in Schedule 8.2;        (m)   Liens securing purchase money Indebtedness (other than on any Borrowing Base Properties) and Capital Leases to the extent permitted pursuant to Section 8.1(e); provided, any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the assets subject to such Capital Lease, respectively;        (n)   Liens  in  favor  of  the  Issuing  Bank  or  the  Swingline  Lender  on  cash  collateral securing the obligations of a Defaulting Lender to fund risk participations hereunder;        (o)   Liens on assets other than Borrowing Base Properties consisting of judgment or judicial  attachment  liens  relating  to  judgments  which  do  not  constitute  an  Event  of  Default hereunder;        (p)   licenses  (including  licenses  of  Intellectual  Property),  sublicenses,  leases  or subleases granted to third parties in the ordinary course of business;        (q)   Liens in favor of collecting banks under Section 4-210 of the UCC;        (r)   Liens  (including  the  right  of  set-off)  in  favor  of  a  bank  or  other  depository institution arising as a matter of law encumbering deposits;        (s)   Liens  arising  out  of  conditional  sale,  title  retention,  consignment  or  similar arrangements for the sale of goods in the ordinary course of business; and        (t)   Liens securing Secured Recourse Indebtedness and Non-Recourse Indebtedness of any Credit Party or any Subsidiary thereof (including any Foreign Subsidiary and any Excluded Subsidiary) on assets other than Borrowing Base Properties to the extent such Secured Recourse Indebtedness or secured Non-Recourse Indebtedness is permitted pursuant to Section 8.1.                                   98 

 

     Section 8.3 No Further Negative Pledges.  No Credit Party shall, nor shall it permit any of its Subsidiaries  to,  enter  into  any  Contractual  Obligation  (other  than  this  Agreement  and  the  other  Credit Documents) that limits the ability of the Borrower or any such Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person; provided, however, that this Section 8.3 shall not prohibit (i) any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under Section 8.1(e), solely to the extent any such negative pledge relates to the property financed by or subject to Permitted Liens  securing such Indebtedness,  (ii) any Contractual Obligation incurred  or provided in favor of any holder  of Indebtedness  permitted under Section 8.1(l),  solely to the  extent such Contractual Obligation prohibits the pledge of the Capital Stock of the Borrower to secure any Indebtedness, (iii) any Permitted Lien  or  any  document  or  instrument  governing  any  Permitted  Lien;  provided  that  any  such  restriction contained  therein  relates  only  to  the  asset  or  assets  subject  to  such  Permitted  Lien,  (iv)  customary restrictions and conditions contained in any agreement relating to the disposition of any property or assets permitted  under  Section  8.10  pending  the  consummation  of such  disposition,  (v) customary  provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business, and (vi) any Contractual Obligation (including,  without  limitation,  any  negative  pledge)  incurred  or  provided  in  favor  of  any  holder  of Indebtedness permitted under Section 8.1(k).        Section 8.4 Restricted  Payments.   Declare  or  make,  directly  or  indirectly,  any  Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:             (a)    each Subsidiary of the Borrower may make Restricted Payments to the Borrower,       and the Borrower and each other Subsidiary of the Parent may make Restricted Payments to the       Parent;              (b)   the Borrower and each Subsidiary may declare and make dividend payments or       other distributions payable solely in the Capital Stock of such Person; and              (c)   the Credit Parties and the other Consolidated Parties (if any) shall be permitted to       make other Restricted Payments, subject to the limitations with respect thereto set forth in Section       8.8(f).        Section 8.5 Burdensome  Agreements.   No  Credit  Party  shall,  nor  shall  it  permit  any  of  its Subsidiaries to, enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the ability of any such Person to (i) pay dividends or make any other distributions to the Borrower or other Credit Party on its Capital Stock or with respect to any other interest or participation in, or measured by, its profits, (ii) pay any Indebtedness or other obligation owed to the Borrower or any other Credit Party, (iii) make loans or advances to the Borrower or any other Credit Party, (iv) sell, lease or transfer any of its property to the Borrower or any other Credit Party, (v) pledge its property pursuant to the Credit Documents or  any  renewals,  refinancings,  exchanges,  refundings  or  extension  thereof  or  (vi)  other  than  customary Subsidiary Indebtedness limitations or covenants, act as a Borrower pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof, except (in respect of any of the matters referred to in clauses (i)-(v) above) for (1) this Agreement and the other Credit Documents, (2) any document  or  instrument  governing  Indebtedness  incurred  pursuant  to  Section  8.1(e)  or  Section  8.1(j); provided that any such restriction contained therein relates only to the asset or assets constructed or acquired in  connection  therewith  or  secured  thereby,  (3)  any  Permitted  Lien  or  any  document  or  instrument governing any Permitted Lien, provided that any such restriction contained therein relates only to the asset or  assets  subject  to  such  Permitted  Lien,  (4)  customary  restrictions  and  conditions  contained  in  any agreement relating to the sale of any property permitted under Section 8.10 pending the consummation of such sale, or (5) any document or instrument governing Indebtedness incurred pursuant to Section 8.1(k).                                         99 

 

      Section 8.6 Investments.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly  or  indirectly,  make  or own any Investment  in any Person,  including any  joint  venture and any Foreign Subsidiary, except:             (a)    Investments  in  cash  and  Cash  Equivalents  and  deposit  accounts  or  securities       accounts in connection therewith;              (b)   Investments owned as of the Effective Date in any Subsidiary or Unconsolidated       Affiliate,  and Investments  in any Subsidiary formed  or acquired after the Effective Date to the       extent such Subsidiary is a Guarantor, or becomes a Guarantor in accordance with Section 7.12(b);              (c)   intercompany loans and Guarantees to the extent permitted under Section 8.1;              (d)   Investments existing on the Effective Date and described on Schedule 8.6;              (e)   Investments in Real Estate Assets that constitute Healthcare Facilities (other than       Unimproved  Land  or  Construction-In-Process,  Investments  in  which  shall  be  subject  to  the       limitations set forth in clause (j) below);              (f)   Investments in Subsidiaries formed or acquired after the Effective Date that do not       own  any  Unencumbered  Pool  Properties  and  that  are  not  required  to  become  Guarantors  in       accordance with Section 7.12(b),  so long as the Credit Parties shall be in compliance, on a pro       forma basis after giving effect to such Investment, with the financial covenants set forth in Section       8.8, recomputed as of the last day of the most recently ended Fiscal Quarter of the Borrower for       which financial statements have been delivered pursuant to Section 7.1;              (g)   Investments constituting Swap Contracts permitted by Section 8.1(f);              (h)   Investments  constituting accounts  or lease or rent  receivables,  prepayments  and       deposits, in each case made in the ordinary course of business;              (i)   Investments in the nature of capital expenditures in respect of any fixed or capital       asset,  to  the  extent  such  capital  expenditures  constitute  normal  replacements  and  maintenance       which  are  properly  charged  to  current  operations  or  other  reasonable  and  customary  capital       expenditures made in the ordinary course of the business of the Parent and its Subsidiaries;              (j)   subject to the following limitations, Investments in the following asset classes: (i)       Capital Stock, the issuer with respect to which is an Unconsolidated Affiliate, and mezzanine loans       made to, or similar Investments in, any Person (other than an Affiliate of any Credit Party) that       owns, directly or indirectly, one or more Real Estate Assets that constitute Healthcare Facilities       (“Class I”), (ii) Construction-In-Process (“Class II”), (iii) Unimproved Land (“Class III”), and (iv)       Unencumbered Mortgage Receivables (“Class IV;” each of Class I, Class II, Class III and Class IV       may  be  referred  to  herein  individually  as  a  “Class”  and  collectively  as  “Classes”):  provided,       Investments in each of the foregoing asset Classes shall be permitted hereunder only to the extent       that the aggregate amount of all Investments in such Class (based on the GAAP book value of each       such Investment at such time of determination) does not exceed the corresponding percentage of       Total Asset Value for such Class set forth below:          Class                 Investment Type                Maximum Percentage                                        100 

 

           I   Unconsolidated  Affiliates  (including  any  Investments  in 20.0%                Unconsolidated  Affiliates  permitted  under  clause  (b)                above) and mezzanine loans and similar Investments            II   Construction-In-Process                             20.0%            III  Unimproved Land                                      5.0%            IV   Unencumbered Mortgage Receivables                   10.0%         In addition to the foregoing limitations on permitted Investments under this clause (j), at no time        shall the aggregate GAAP book value of the Investments in Classes I, II, III and IV above exceed        twenty-five percent (25.0%) of Total Asset Value.  Notwithstanding anything contained herein to        the contrary, any failure of the Borrower to meet the foregoing Investment limitations shall not        constitute an Event of Default hereunder, but shall result in the excess value of such Investment        being excluded when calculating Gross Asset Value hereunder.  Notwithstanding  the  foregoing,  (x) in  no  event  shall  any  Credit  Party  make  any  Investment  under  this Section 8.6 which results in or facilitates in any manner any Restricted Payment not otherwise permitted  under  the  terms  of  Section  8.4;  and  (y)  in  no  event  shall  the  Parent  be  permitted  to  make  any  equity  Investment in any Person other than the Borrower.         Section 8.7 Use of Proceeds.  No Credit Party shall use the proceeds of any Credit Extension  or the Loans except pursuant to Section 7.9.         Section 8.8 Financial Covenants.  No Credit Party shall at any time:               (a)   Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio, tested as        of the end of any Fiscal Quarter of the Borrower, to be greater than 0.60 to 1.00; provided that, if        the Borrower shall have consummated a Material Acquisition, at the Borrower’s election, then no        Credit  Party  shall  permit  the  Consolidated  Leverage  Ratio,  tested  as  of  the  end  of  each  Fiscal        Quarter for the four consecutive Fiscal Quarter period following such Material Acquisition, to be        greater than 0.65 to 1.00.               (b)   Consolidated  Secured  Indebtedness  Leverage  Ratio.   Permit  the  Consolidated        Secured Indebtedness Leverage Ratio, tested as of the end of any Fiscal Quarter of the Borrower,        to be greater than thirty percent (30.0%).               (c)   [Reserved].               (d)   Consolidated  Fixed  Charge  Coverage  Ratio.   Permit  the  Consolidated  Fixed        Charge Coverage Ratio, tested as of the end of any Fiscal Quarter of the Borrower, to be less than        1.50 to 1.00.               (e)   Tangible Net Worth.  Permit Tangible Net Worth, tested as of the end of any Fiscal        Quarter of the Borrower, to be less than the sum of (x) $2,128,750,000.00, plus (y) an amount equal        to, on a cumulative basis, the product of (i) the sum of all Net Cash Proceeds from any Equity        Issuance after the Effective Date, multiplied by (ii) seventy-five percent (75.0%).                                         101 

 

           (f)    Distribution  Limitation.   Each  Credit  Party  and  each  other  Subsidiary  shall  be       permitted to make Restricted Payments to the Borrower and the Borrower shall be permitted to       make Restricted Payments to Parent (and the Borrower may make any corresponding Restricted       Payments to the holders (other than the Parent) of common and preferred limited partnership units       in the Borrower, based on such holders’ individual percentage ownership of Capital Stock in the       Borrower or otherwise in accordance with the Borrower’s Organizational Documents); provided       that if an Event of Default shall be in existence, such Restricted Payments shall be limited to the       amount necessary  to permit the Parent to make Restricted Payments to the holders of the Capital       Stock in the Parent to the extent necessary to maintain Parent’s status as a REIT or to enable the       Parent to avoid payment of any Tax for any calendar year that could be avoided by reason of a       Restricted Payment by Parent to the holders of its Capital Stock, with such Restricted Payments by       the Parent to be made as and when reasonably determined by Parent, whether during or after the       end of the relevant calendar year, and in all cases as set forth in a certification to the Administrative       Agent from the chief financial officer, principal accounting officer, treasurer or controller of the       Parent;  provided,  further,  that  in  no  event  shall  the  Consolidated  Parties  make  any  Restricted       Payments to the holders of their Capital Stock (other than any Restricted Payments to such holders       of Capital Stock which are also Credit Parties) if or to the extent that an Event of Default then exists       under Sections 9.1(a), (f) or (g) or if the Obligations shall have been accelerated under Section 9.2       as a result of the occurrence of an Event of Default.        Section 8.9 Capital  Expenditures.  The  Credit  Parties  and  Unencumbered  Property  Owners shall not make or become legally obligated to make any capital expenditures, except to the extent permitted under Section 8.6(i).        Section 8.10 Fundamental Changes; Disposition of Assets; Acquisitions.  No Credit Party shall, nor  shall  it  permit  any  of  its  Subsidiaries  to,  enter  into  any  Acquisition  or  transaction  of  merger  or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and materials and the acquisition  of  equipment  and capital  expenditures  in the  ordinary course of business, subject  to  Section  8.9)  the  business,  property  or  fixed  assets  of,  or  Capital Stock  or  other  evidence  of beneficial ownership of, any Person or any division or line of business or other business unit of any Person, except:             (a)    any Subsidiary of the Borrower may be merged with or into the Borrower or any       other Subsidiary, or be liquidated, wound up or dissolved, or all or any part of its business, property       or assets may be conveyed, sold, leased, transferred or otherwise disposed of, in one transaction or       a series of transactions, to the Borrower or any other Credit Party; provided, in the case of such a       merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving       Person and (ii) if any Guarantor or an Unencumbered Property Owner is a party to such merger,       then a Guarantor or Unencumbered Property Owner shall be the continuing or surviving Person;              (b)   Asset Sales, so long as no Default or Event of Default then exists or would result       from any such Asset Sale and the consideration received for the assets subject to such Asset Sale       is in an amount at least equal to the fair market value thereof (determined in good faith by the board       of directors of the applicable Credit Party (or similar governing body)); provided, each of the Credit       Parties acknowledges and agrees that no proceeds of any such Asset Sale permitted hereunder shall       be used to make Restricted Payments other than in compliance with Sections 8.4 and 8.8(f); and              (c)   Investments made in accordance with Section 8.6 and the subsequent sale or other       disposition of such Investments (so long the consideration received for such Investments subject to       such  sale  or  other  disposition  is  in  an  amount  at  least  equal  to  the  fair  market  value  thereof                                       102 

 

      (determined  in  good  faith  by  the  board  of  directors  of  the  applicable  Credit  Party  (or  similar       governing body)); provided, each of the Credit Parties acknowledges and agrees that no proceeds       of any such sale or other disposition permitted hereunder shall be used to make Restricted Payments       other than in compliance with Sections 8.4 and 8.8(f).        Section 8.11 Disposal  of  Subsidiary  Interests.   Except  as  otherwise  permitted  hereunder and except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries to, (a) directly or indirectly sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or (b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by Applicable Laws.        Section 8.12 Transactions with Affiliates and Insiders.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any officer, director or Affiliate of the Borrower or any its Subsidiaries on terms that are less favorable to the Borrower or such Subsidiary, as the case may be, than those that might be obtained at the time from a Person who is not an officer, director or Affiliate of the Borrower or any of its Subsidiaries; provided, the foregoing restriction shall  not  apply  to  (a)  any  transaction  between  or  among  the  Credit  Parties;  (b)  normal  and  reasonable compensation  and  reimbursement  of  expenses  of  directors  in  the  ordinary  course  of  business;  (c) compensation and reimbursement of out-of-pocket expenses, employment and severance arrangements for officers and other employees entered into in the ordinary course of business; (d) equity issuances by the Parent not constituting a Change of Control; (e) payments by the Parent permitted by Section 8.4; and (e) the  payment  of  customary  indemnities  to  directors,  officers  and  employees  in  the  ordinary  course  of business.        Section 8.13 Prepayment of Other Funded Debt.  No Credit Party shall, nor shall it permit any of its Subsidiaries to:             (a)    after  the  issuance  thereof,  amend  or  modify  (or  permit  the  amendment  or       modification of) the terms of any Funded Debt in a manner adverse to the interests of the Lenders       (including specifically shortening any maturity or average life to maturity or requiring any payment       sooner than previously scheduled or increasing the interest rate or fees applicable thereto);              (b)   amend  or  modify,  or  permit  or  acquiesce  to  the  amendment  or  modification       (including waivers) of, any material provisions of any Subordinated Debt, including any notes or       instruments evidencing any Subordinated Debt and any indenture or other governing instrument       relating thereto;              (c)   make any payment in contravention of the terms of any Subordinated Debt; or              (d)   except in connection with a refinancing or refunding permitted hereunder, make       any voluntary prepayment, redemption, defeasance or acquisition for value of (including by way       of depositing money or securities with the trustee with respect thereto before due for the purpose       of  paying  when  due),  or  refund,  refinance  or  exchange  of,  any  Funded  Debt  (other  than  the       Indebtedness under the Credit Documents, intercompany Indebtedness permitted hereunder and       Indebtedness  permitted  under  Section  8.1(b),  Section  8.1(d)  or  Section  8.1(k));  provided,  this       Section 8.13(d) shall not prohibit the prepayment or payment at maturity by any Subsidiary of any       Specified CMBS Indebtedness if, on or prior to the date of any such payment, (x) the Real Estate       Asset subject to and securing such Specified CMBS Indebtedness is, or shall have been, proposed                                       103 

 

      for  inclusion  in  the  Borrowing  Base  in  accordance  with  Section  8.17,  and  (y)  such  Subsidiary       becomes a Guarantor in accordance with Section 7.12.        Without limiting the foregoing, nothing in this Section 8.13 shall be interpreted or deemed to permit       any Credit Party or Subsidiary to incur any Funded Debt or Subordinated Debt to the extent such       Funded Debt or Subordinated Debt is not otherwise expressly permitted under Section 8.1.        Section 8.14 Conduct  of  Business.   From  and  after  the  Effective  Date,  the  Parent  and  the Borrower shall not, nor shall they permit any of their Subsidiaries to, engage in any business other than the businesses engaged in by the Parent, the Borrower or such Subsidiary, respectively, on the Effective Date and businesses that are substantially similar, related or incidental thereto, including, but not limited to, owning, developing, and managing real and personal property and similar interests in leasehold properties which are net leased to healthcare operators for use as Healthcare Facilities.        Section 8.15 Fiscal Year.  No Credit Party shall, nor shall it permit any of its Subsidiaries to change its Fiscal Year-end from December 31.        Section 8.16 Amendments  to  Organizational  Agreements/Material  Agreements.   No  Credit Party  shall,  nor  shall  it  permit  any  of  its  Subsidiaries  to,  amend  or  permit  any  amendments  to  its Organizational Documents if such amendment would reasonably be expected to be materially adverse to the Lenders or the Administrative Agent.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, amend or permit any amendment to, or terminate or waive any provision of, any Material Contract unless such amendment, termination, or waiver would not have a material adverse effect on the Administrative Agent or the Lenders.        Section 8.17 Addition/Removal of Unencumbered Pool Properties.  Neither the Borrower nor any other Credit Party shall request the addition or a release of any Unencumbered Pool Property or add any  Real  Estate  Asset  as  an  Unencumbered  Pool  Property  hereunder  except  in  accordance  with  the following:             (a)    The Borrower may from time to time amend Schedule 6.24 to add an additional       Real Estate Asset that qualifies as an Unencumbered Pool Property; provided, no Real Estate Asset       shall be included as an Unencumbered Pool Property in any Compliance Certificate or Borrowing       Base  Certificate  delivered  to  the  Administrative  Agent,  on  Schedule  6.24  or  otherwise  in  any       calculation  of  the  Borrowing  Base  unless  and  until  such  Real  Estate  Asset  meets  all  of  the       requirements  set  forth  in  the  definition  of  “Unencumbered  Pool  Property”  for  inclusion  in  the       Borrowing Base.              (b)   Notwithstanding anything contained herein to the contrary, to the extent any Real       Estate Asset previously qualifying as an Unencumbered Pool Property ceases to meet the criteria       for qualification as such, such Real Estate Asset shall be immediately removed from all Borrowing       Base-related calculations contained herein.  Any such property removed from  Borrowing Base-       related calculations pursuant to this clause (b) shall immediately cease to be a “Unencumbered Pool       Property” hereunder, in which case Schedule 6.24 attached hereto shall be deemed to have been       immediately  amended  to  remove  such  Real  Estate  Asset  from  the  list  of  Unencumbered  Pool       Properties.              (c)   The Credit Parties may voluntarily remove any Unencumbered Pool Property from       qualification as such if, and to the extent that, the Credit Parties shall, immediately following such       removal, be in compliance with all of the covenants contained in Sections 7 and 8 of this Agreement                                        104 

 

      and  with  all  Borrowing  Base-related  limitations  on  Outstanding  Amounts  set  forth  in  this       Agreement.              (d)   Upon removal of an Unencumbered Pool Property pursuant to clauses (b) or (c)       above, (i) Schedule 6.24 shall be immediately amended to remove such Real Estate Asset from the       list  of  Unencumbered  Pool  Properties;  and  (ii)  the  Borrower  shall  concurrently  deliver  to  the       Administrative Agent written notice of any such voluntary removal or other event or circumstance       that results in a Real Estate Asset previously qualifying as an Unencumbered Pool Property ceasing       to qualify as such (provided, that such notification shall be accompanied by an updated Compliance       Certificate  with  calculations  showing  the  effect  of  such  removal  on  the  financial  covenants       contained  herein  and  on  any  Borrowing  Base-related  restrictions  on  the  Outstanding  Amounts       hereunder).        Section 8.18 Property Management Agreements Regarding Unencumbered Pool Properties.              (a)   No Unencumbered Property Owner shall, following the date on which any Real       Estate  Asset  is  first  included  as  an  Unencumbered  Pool  Property,  enter  into  any  property       management agreement, or agree to pay any Person any fees or compensation in connection with       the  management  of  all  or  any  portion  of  such  Unencumbered  Pool  Property,  except  with  an       Approved Manager pursuant to a management agreement substantially in the form approved by the       Administrative  Agent  prior  to  the  Effective  Date  or  other  form  reasonably  acceptable  to  the       Administrative Agent.  With respect to each Unencumbered Pool Property subject to a property       management  agreement,  the  Borrower  (or  the  applicable  Unencumbered  Property  Owner  with       respect  to  such  Unencumbered  Pool  Property)  shall  (i)  promptly  perform  and  observe  in  a       commercially reasonable manner all of the covenants required to be performed and observed by it       under such property management agreement and do all things necessary (to the extent commercially       reasonable) to preserve and to keep unimpaired its material rights thereunder; (ii) promptly deliver       to the Administrative Agent a copy of any notice of default or other material notice under such       property  management  agreement  received  by  the  Borrower  (or  the  applicable  Unencumbered       Property Owner with respect to such Unencumbered Pool Property) from the Approved Manager       party thereto (including any notice that the Approved Manager intends to terminate such property       management  agreement  or  that  the  Approved  Manager  otherwise  intends  to  discontinue  its       management of such Unencumbered Pool Property); and (iii) promptly enforce in a commercially       reasonable manner the performance and observance of all of the covenants required to be performed       and observed by such Approved Manager under such property management agreement.              (b)   No Unencumbered Property Owner shall, without the prior written consent of the       Administrative Agent (which consent shall not be unreasonably withheld): (i) surrender, terminate       or cancel any property management  agreement or otherwise replace any  Approved Manager or       enter  into  any  other  management  agreement  with  respect  to  any  Unencumbered  Pool  Property,       except in accordance with clause (a) of this Section 8.18; (ii) reduce or consent to the reduction of       the term of any such property management agreement; (iii) increase or consent to the increase of       the amount of any charges or management fees under any such property management agreement;       or (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights       and remedies under, any property management agreement in any material respect.       Section 9   EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS.        Section 9.1 Events of Default.  If any one or more of the following conditions or events shall occur:                                        105 

 

     (a)    Failure to Make Payments When Due.  Failure by any Credit Party to pay (i) the principal of any Loan when due, whether at stated maturity, by acceleration or otherwise; (ii) within one (1) Business Day of when due any amount payable to the Issuing Bank in reimbursement of any  drawing under a Letter of Credit; or (iii)  within three (3)  Business Days  of  when  due any interest on any Loan or any fee or any other amount due hereunder; or        (b)   Default  in  Other  Agreements.   (i)  Failure  of  any  Credit  Party  or  any  of  its Subsidiaries to pay when due any principal of or interest on or any other amount payable in respect of one or more items of (x) Recourse Indebtedness (other than Indebtedness referred to in Section 8.1(a)) in an aggregate principal amount of $50,000,000 or more, in each case beyond the grace or cure period, if any, provided therefor or (y) Non-Recourse Indebtedness in an aggregate principal amount of $100,000,000 or more, in each case beyond the grace or cure period, if any, provided therefor; or (ii) breach or default by any Credit Party with respect to any other term of (1) one or more items of Indebtedness in the aggregate principal amounts referred to in clauses (i)(x) or (i)(y) above, or (2) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case beyond the grace or cure period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that Indebtedness to become or be declared due and payable (or subject to a compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be; or        (c)   Breach of Certain Covenants.  Failure of Borrower, Parent or any Unencumbered Property  Owner,  as  applicable,  to  perform  or  comply  with  any  term  or  condition  contained  in Section 7.1, Section 7.2(a), Section 7.5, Section 7.9, Section 7.12, Section 7.13 (to the extent such failure would permit the ground lessor under the applicable Eligible Ground Lease to terminate such Eligible Ground Lease), Section 7.15 or Section 8; or        (d)   Breach  of  Representations,  etc.   Any  representation,  warranty,  certification  or other  statement  made  or  deemed  made  by  any  Credit  Party  in  any  Credit  Document  or  in  any statement or certificate at any time given by any Credit Party or any of its Subsidiaries in writing pursuant hereto or thereto  or in connection herewith  or therewith shall be false  in any  material respect as of the date made or deemed made; or        (e)   Other Defaults Under Credit Documents.  Any Credit  Party shall default  in the performance of or compliance with any term contained herein or any of the other Credit Documents, other than any such term referred to in any other Section of this Section 9.1, and such default shall not have been remedied  or waived  within thirty (30) days after the  earlier of (i) an  Authorized Officer of such Borrower becoming aware of such default, or (ii) receipt by the Borrower of notice from the Administrative Agent or any Lender of such default; provided, however, if such default is not capable of being cured within such thirty (30) day period, such period shall be extended for a reasonable period of time (not to exceed thirty (30) additional days), so long as such Credit Party has commenced and is diligently pursuing such cure within such initial thirty (30) day period; or        (f)   Involuntary Bankruptcy; Appointment of Receiver, etc.  (i) A court of competent jurisdiction  shall  enter  a  decree  or  order  for  relief  in  respect  of  any  Credit  Party  or  any  of  its Subsidiaries  in  an  involuntary  case  under  the  Bankruptcy  Code  or  Debtor  Relief  Laws  now  or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal or state law; or (ii) an involuntary case shall be commenced against any Credit Party or any of its Subsidiaries under the Bankruptcy Code or other Debtor Relief Laws now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar                                 106 

 

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

 

      including with respect to future advances by the Lenders, under any Credit Document to which it       is a party; or              (m)   Failure to Maintain REIT Status.  The Parent shall, for any reason, lose or fail to       maintain its status as a REIT or the Borrower shall, for any reason, lose or fail to maintain its status       as any of the following:  a REIT, a partnership or other disregarded entity (in each case, for federal       income tax purposes); or              (n)   Management  Agreement.  There occurs a monetary or material  default under a       management agreement with respect to an Unencumbered Pool Property (which material default       shall include any default which would permit the manager under any such management agreement       to terminate such management agreement or would otherwise result in a material increase of the       obligations of the Unencumbered Property Owner that is a party to such management agreement)       and such default is not remedied prior to the date which is the earlier of (i) thirty (30) days from       the occurrence of the event or condition which caused, led to, or resulted in such default, and (ii)       the last day of any cure period provided in such management agreement for such default.        Section 9.2 Remedies.   Upon  the  occurrence  of  any Event  of  Default  described  in  Section 9.1(f) or Section 9.1(g), automatically, and (2) upon the occurrence and during the continuance of any other Event  of  Default,  at  the  request  of  (or  with  the  consent  of)  the  Required  Lenders,  upon  notice  to  the Borrower by the Administrative Agent, (A) the Revolving Commitments, if any, of each Lender having such Revolving Commitments and the obligation of the Issuing Bank to issue any Letter of Credit shall immediately terminate; (B) each of the following shall immediately become due and payable, in each case without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each of the Credit Parties: (I) the unpaid principal amount of and accrued interest on the Loans, (II) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit), and (III) all other Obligations; provided, the foregoing shall not affect in any way the obligations of the Lenders under Section 2.2(b)(iii) or Section 2.3(e);  and  (C) the Administrative Agent shall direct the Borrower to pay (and the Borrower hereby agrees upon receipt of such notice, or upon the occurrence  of  any  Event  of  Default  specified  in  Section  9.1(f)  and  Section  9.1(g)  to  pay)  to  the Administrative  Agent  such  additional  amounts  of  cash,  to  be  held  as  security  for  such  Borrower’s reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable to the Administrative Agent, equal to the Outstanding Amount of the Letter of Credit Obligations at such time.   Notwithstanding  anything  herein  or  otherwise  to  the  contrary,  any  Event  of  Default  occurring hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with the terms of Section 11.4.        Section 9.3 Application of Funds.  After the exercise of remedies provided for in Section 9.2 (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:             First, to payment of that portion of the Obligations constituting fees, indemnities, expenses       and other amounts (other than principal, interest and Letter of Credit Fees but including without       limitation all reasonable and documented out-of-pocket fees, expenses and disbursements of any       law firm or other counsel and amounts payable under Section 3.1, Section 3.2 and Section 3.3)       payable to the Administrative Agent, in its capacity as such;                                        108 

 

            Second, to payment of that portion of the Obligations constituting fees, indemnities and        other  amounts  (other  than  principal,  interest  and  Letter  of  Credit  Fees)  payable  to  the  Lenders        including  without  limitation  all  reasonable  and  documented  out-of-pocket  fees,  expenses  and        disbursements of any law firm or other counsel and amounts payable under Section 3.1, Section        3.2 and Section 3.3), ratably among the Lenders in proportion to the respective amounts described        in this clause Second payable to them;               Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter        of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably        among such parties in proportion to the respective amounts described in this clause Third payable        to them; and               Fourth, to (a) payment of that portion of the Obligations constituting unpaid principal of        the Loans and Letter of Credit Borrowings, (b) payment of breakage, termination or other amounts        owing in respect of any Swap Contract between the Borrower or any of its Subsidiaries and any        Swap Bank, to the extent such Swap Contract is permitted hereunder, (c) payments of amounts due        under any Treasury Management Agreement between the Borrower or any of its Subsidiaries and        any Treasury Management Bank, and (d) the Administrative Agent for the account of the Issuing        Bank,  to  Cash  Collateralize  that  portion  of  the  Letter  of  Credit  Obligations  comprised  of  the        aggregate undrawn amount of Letters of Credit, ratably among such parties in proportion to the        respective amounts described in this clause Fourth payable to them; and               Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to        the Borrower or as otherwise required by Applicable Laws.  Subject to Section 2.3, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of  Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such Letters of Credit as  they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been  fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order  set forth above.   Notwithstanding the foregoing,  Obligations  arising under Treasury Management  Agreements  and Swap  Contracts  shall  be  excluded  from  the  application  described  above  if  the  Administrative  Agent  has  not  received  written  notice, together with such supporting  documentation as the Administrative  Agent  may  request, from the applicable Treasury Management Bank or Swap Bank, as the case may be.  Each Treasury  Management Bank or Swap Bank not a party to this Agreement that has given the notice contemplated by  the  preceding  sentence  shall,  by  such  notice,  be  deemed  to  have  acknowledged  and  accepted  the  appointment of the Administrative Agent pursuant to the terms of Article X for itself and its Affiliates as if  a “Lender” party hereto.                               Section 10 AGENCY         Section 10.1 Appointment and Authority.               (a)   Each of the Lenders and the Issuing Bank hereby irrevocably appoints KeyBank        to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents        and authorizes the Administrative Agent to take such actions on its behalf and to exercise such        powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with        such actions and powers as are reasonably incidental thereto.  The provisions of this Section are        solely for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit        Party  nor  any  of  its  Subsidiaries  shall  have  rights  as  a  third  party  beneficiary  of  any  of  such        provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Credit                                        109 

 

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

 

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

 

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

 

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

 

      confirm  in  writing  the  Administrative  Agent’s  authority  to  release  any  Guarantor  from  its       obligations under this Agreement pursuant to this Section.              (b)   As  may  be  applicable  at  any  time,  anything  contained  in  any  of  the  Credit       Documents to the contrary notwithstanding, each of the Credit Parties, the Administrative Agent       and each holder of the Obligations hereby agrees that no holder of the Obligations shall have any       right individually to  enforce this  Agreement,  the Notes or any  other Credit  Document, it  being       understood and agreed that all powers, rights and remedies hereunder may be exercised solely by       the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms       hereof and, as may be applicable at any time, all powers, rights and remedies under any Credit       Documents may be exercised solely by the Administrative Agent.              (c)   As  may be applicable at any time, no Swap Contract or Treasury Management       Agreement  will  create  (or  be  deemed  to  create)  in  favor  of  any  Swap  Bank  or  any  Treasury       Management Banks, respectively that is a party thereto any rights in connection with the obligations       of the Borrower or any other Credit Party under the Credit Documents except as expressly provided       herein or in the other Credit Documents.                          Section 11  MISCELLANEOUS        Section 11.1 Notices; Effectiveness; Electronic Communications.              (a)   Notices  Generally.  Except  in  the  case  of  notices  and  other  communications       expressly permitted to be given by telephone (and except as provided in subsection (b) below), all       notices and other communications provided for herein shall be in writing and shall be delivered by       hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or       electronic mail as follows, and all notices and other communications expressly permitted hereunder       to be given by telephone shall be made to the applicable telephone number, as follows:                   (i)    if to the Administrative Agent, the Borrower or any other Credit Party, to             the address, telecopier number, electronic mail address or telephone number specified in             Appendix B:                    (ii)  if to any Lender, the Issuing Bank or Swingline Lender, to the address,             telecopier  number,  electronic  mail  address  or  telephone  number  in  its  Administrative             Questionnaire on file with the Administrative Agent.  Notices  and other communications sent  by  hand  or overnight  courier service, or  mailed by certified  or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).              (b)   Electronic Communications.  Notices  and other communications to the Lenders       and  the  Issuing  Bank  hereunder  may  be  delivered  or  furnished  by  electronic  communication       (including e-mail and Internet or intranet websites) pursuant to procedures reasonably approved by       the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or       the  Issuing  Bank  pursuant  to  Section  2  if  such  Lender  or  the  Issuing  Bank,  as  applicable,  has       notified the Administrative Agent and the Borrower that it is incapable of receiving notices under       such Section by electronic communication.  The Administrative Agent or any Credit Party may, in                                        114 

 

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

 

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

 

      the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-       agent), the Issuing Bank or such Related Party, as the case may be, such Lender’s pro rata share (in       each  case,  determined  as  of  the  time  that  the  applicable  unreimbursed  expense  or  indemnity       payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified       loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted       against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as       such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or       any such sub-agent) or the Issuing Bank in connection with such capacity.  The obligations of the       Lenders under this subsection (c) are subject to the provisions of this Agreement that provide that       their obligations are several in nature, and not joint and several.              (d)   Waiver  of  Consequential  Damages,  Etc.   To  the  fullest  extent  permitted  by       Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against       any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages       (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this       Agreement, any other Credit Document or any agreement or instrument contemplated hereby, the       transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds       thereof.  No Indemnitee referred to in subsection (b) above shall be liable for any damages arising       from the use by unintended recipients of any information or other materials distributed by such       Indemnitee through telecommunications, electronic or other information transmission systems in       connection with this Agreement or the other Credit Documents or the transactions contemplated       hereby or thereby.              (e)   Payments.  All amounts due under this Section shall be payable promptly, but in       any event within ten (10) Business Days after written demand therefor (including delivery of copies       of applicable invoices).              (f)   Survival.  The provisions of this Section shall survive resignation or replacement       of the Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender, termination of       the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations       hereunder.        Section 11.3 Set-Off.  Subject in all respects to Section 2.14, if an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and  apply  any  and  all  deposits  (general  or  special,  time  or  demand,  provisional  or  final,  in  whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Credit Document to such Lender or the Issuing Bank, irrespective of whether or not such Lender or the Issuing Bank shall have made any demand under this Agreement or any other  Credit  Document  and  although  such  obligations  of  the  Borrower  or  such  Credit  Party  may  be contingent or unmatured or are owed to a branch or office of such Lender or the Issuing Bank different from  the  branch  or  office  holding  such  deposit  or  obligated  on  such  indebtedness.  The  rights  of  each Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights and  remedies  (including  other  rights  of  setoff)  that  such  Lender,  the  Issuing  Bank  or  their  respective Affiliates  may have.  Each  of the Lenders and the Issuing  Bank agrees to notify the  Borrower and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.        Section 11.4 Amendments and Waivers.                                       117 

 

     (a)    Required Lenders Consent.  Subject to Section 3.1(a), Section 11.4(b) and Section 11.4(c),  no  amendment,  modification,  termination  or  waiver  of  any  provision  of  the  Credit Documents,  or  consent  to  any  departure  by  any  Credit  Party  therefrom,  shall  in  any  event  be effective without the written concurrence of the Administrative Agent and the Required Lenders; provided that (i) the Administrative Agent  may, with the consent of the Borrower only, amend, modify or supplement this Agreement to cure any ambiguity, omission, defect or inconsistency, so long as such amendment, modification or supplement does not adversely affect the rights of any Lender or the Issuing Bank, (ii) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (iii) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that (A) the Commitments, Loans and/or Letter of Credit Obligations of such Lender may not be increased or extended  without  the consent  of such Lender,  and (B)  any  waiver, amendment  or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender disproportionately adversely relative to other affected Lenders shall require the consent of such  Defaulting  Lender,  (iv)  each  Lender  is  entitled  to  vote  as  such  Lender  sees  fit  on  any bankruptcy  reorganization  plan  that  affects  the  Loans,  and  each  Lender  acknowledges  that  the provisions  of  Section  1126(c)  of  the  Bankruptcy  Code  of  the  United  States  supersedes  the unanimous  consent  provisions  set  forth  herein,  and  (v)  the  Required  Lenders  shall  determine whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all  of the Lenders;  provided further that, subject further to clauses (b) and (c) below, (A) any term of this Agreement or of any other Credit Document relating solely to the rights or obligations of any Term Lenders in respect of any Term Loan, and not any other Lenders, may be amended, and the performance or observance by the Borrower or any other Credit Party of any such terms may be waived (either generally or in a  particular  instance  and  either  retroactively  or  prospectively)  with,  but  only  with,  the  written consent of the Required Term Lenders (and, in the case of an amendment to any Credit Document, the written consent of each Loan Party a party thereto), and (B) any term of this Agreement or of any other Credit Document relating solely to the rights or obligations of the Revolving Lenders, and not any other Lenders, may be amended, and the performance or observance by the Borrower or any  other Credit Party of any such terms  may be  waived (either generally  or in a particular instance and either retroactively or prospectively) with, and only with, the written consent of the Required Revolving Lenders (and, in the case of an amendment to any Credit Document, the written consent of each Loan Party a party thereto).        (b)   Affected Lenders’ Consent.  Without the written consent  of  each Lender (other than a Defaulting Lender except as provided in clause (a)(iii) above) that would be affected thereby, no amendment, modification, termination, or consent shall be effective if the effect thereof would:             (i)    extend the Revolving Commitment Termination Date, except pursuant to       an extension thereof effected in accordance with Section 2.18, or extend the Term Maturity       Date;              (ii)  waive, reduce or postpone any scheduled repayment (but not prepayment)       or  alter  the  required  application  of  any  prepayment  pursuant  to  Section  2.12  or  the       application of funds pursuant to Section 9.3,  as applicable;              (iii) extend  the  stated  expiration  date  of  any  Letter  of  Credit,  beyond  the       Revolving Commitment Termination Date;              (iv)  reduce the principal of or the rate of interest on any Loan (other than under       Section 3.1(a) or any waiver of the imposition of the Default Rate pursuant to Section 2.9)                                 118 

 

     or any fee or premium payable hereunder, or change the manner of computation of any      financial  or  other  ratio  (including  any  change  in  any  applicable  defined  term)  used  in      determining the Applicable Margin or Facility Fee Rate that would result in a reduction of      any interest rate on any Loan or any fee payable hereunder; provided, however, that only       the consent of the Required Lenders shall be necessary to amend the definition of “Default       Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate;              (v)   extend the time for payment of any such interest or fees;              (vi)  reduce the principal amount of any Loan or any reimbursement obligation       in respect of any Letter of Credit;              (vii) amend, modify, terminate or waive any provision of this Section 11.4(b)       or Section 11.4(c) or any other provision of this Agreement that expressly provides that the       consent of all Lenders is required;              (viii) change the percentage of the outstanding principal amount of Loans that       is  required  for  the  Lenders  or  any  of  them  to  take  any  action  hereunder  or  amend  the       definition  of  “Required  Lenders”,  “Required  Revolving  Lenders”,  “Required  Term       Lenders”  or  “Revolving  Commitment  Percentage”  or  modify  the  amount  of  the       Commitment of any Lender;              (ix)  as may be applicable at any time, release the Parent (as Guarantor) or all       or substantially all of the other Guarantors from their respective obligations hereunder, in       each case, except as expressly provided in the Credit Documents; or              (x)   consent to the assignment or transfer by the Borrower of any of its rights       and obligations under any Credit Document  (except  pursuant to a transaction permitted       hereunder).        (c)   Other  Consents.   No  amendment,  modification,  termination  or  waiver  of  any provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit Party therefrom, shall:             (i)    increase  any  Revolving  Commitment  of  any  Lender  over  the  amount       thereof  then  in  effect  without  the  consent  of  such  Lender;  provided,  no  amendment,       modification or waiver of any condition precedent, covenant, Default or Event of Default       shall constitute an increase in any Revolving Commitment of any Lender;              (ii)  amend,  modify, terminate  or waive any provision hereof relating to the       Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender;              (iii) amend, modify, terminate or waive any obligation of Lenders relating to       the purchase of participations in Letters of Credit as provided in Section 2.3(c) without the       written consent of the Administrative Agent and of the Issuing Bank;              (iv)  amend, modify, terminate or waive any provision of this Section 11 as the       same applies to the Administrative Agent, or any other provision hereof as the same applies       to the rights or obligations of the Administrative Agent, in each case without the consent       of such Administrative Agent;                                  119 

 

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

 

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

 

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

 

           (c)    Register.  The Administrative Agent, acting solely for this purpose as an agent of       the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment       Agreement  delivered  to  it  and  a register  for  the  recordation  of  the  names  and addresses  of  the       Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and       Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).       The  entries  in  the  Register  shall  be  conclusive  absent  manifest  error,  and  the  Borrower,  the       Administrative  Agent  and  the  Lenders  shall  treat  each  Person  whose  name  is  recorded  in  the       Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,       notwithstanding  notice  to  the  contrary.   The  Register  shall  be  available  for  inspection  by  the       Borrower and any Lender, at any reasonable time and from time to time upon reasonable  prior       notice.              (d)   Any Lender may at any time, without the consent of, or notice to, the Borrower or       the  Administrative  Agent,  the  Issuing  Bank  or  the  Swingline Lender,  sell  participations  to any       Person  (other  than  a  natural  Person  or  the  Borrower  or  any  of  the  Borrower’s  Affiliates  or       Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations       under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it);       provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such       Lender  shall  remain  solely  responsible  to  the  other  parties  hereto  for  the  performance  of  such       obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall       continue to deal solely and directly with such Lender in connection with such Lender’s rights and       obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible       for the indemnity under Section 11.2(c) with respect to any payments made by such Lender to its       Participant(s).       Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that  such  Lender  shall  retain  the  sole  right  to  enforce  this  Agreement  and  to  approve  any  amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in clauses (b) or (c) of Section 11.4 that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.1, 3.2 and 3.3 (subject to  the  requirements  and  limitations  therein,  including  the  requirements  under  Section  3.3(f)  (it  being understood  that  the  documentation  required  under  Section  3.3(f)  shall  be  delivered  to  the  participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to clause  (b)  of  this  Section;  provided  that  such  Participant  (A)  agrees  to  be  subject  to  the  provisions  of Sections 2.17 and 3.4 as if it were an assignee under clause (b) of this Section; and (B) shall not be entitled to  receive  any  greater  payment  under  Sections  3.2 or  3.3,  with  respect  to  any  participation,  than  its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment  results  from a Change  in Law that  occurs after the Participant  acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.17 with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.3 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.14 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Credit Documents (the “Participant Register”); provided that no Lender shall have any  obligation  to  disclose  all  or  any  portion  of  the  Participant  Register  (including  the  identity  of  any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under any Credit Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in                                       123 

 

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

 

      Section 11.10 Severability.  In case any provision in or obligation hereunder or any Note or other Credit Document shall be invalid, illegal or unenforceable  in any  jurisdiction,  the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.        Section 11.11 Obligations Several; Independent Nature of Lenders’ Rights.  The obligations of the  Lenders  hereunder  are  several  and  no  Lender  shall  be  responsible  for  the  obligations  or Revolving Commitment of any other Lender hereunder.  Nothing contained herein or in any other Credit Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as a partnership, an association, a joint venture or any other kind of entity.  The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to Section 10.10(b), each Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit Documents and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.        Section 11.12 Headings.   Section  headings  herein  are  included  herein  for  convenience  of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.        Section 11.13 Applicable Laws.              (a)   Governing  Law.   This  Agreement  shall  be  governed  by,  and  construed  in       accordance with, the law of the State of New York.              (b)   Submission  to  Jurisdiction.   Each  party  hereto  irrevocably  and  unconditionally       submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New       York sitting in the Borough of Manhattan and of the United States District Court of the Southern       District, and any appellate court from any thereof, in any action or proceeding arising  out of or       relating to this Agreement or any other Credit Document, or for recognition or enforcement of any       judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in       respect of any such action or proceeding may be heard and determined in such New York State       court or, to the fullest  extent  permitted by Applicable Law,  in such Federal court.  Each of the       parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and       may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by       law.  Nothing in this Agreement or in any other Credit Document shall affect any right that any       party may otherwise have to bring any action or proceeding relating to this Agreement or any other       Credit Document against any Credit Party or its properties in the courts of any jurisdiction.              (c)   Waiver of Venue.  Each party hereto irrevocably and unconditionally waives, to       the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to       the laying of venue of any action or proceeding arising out of or relating to this Agreement or any       other Credit Document in any court referred to in subsection (b) of this Section.  Each of the parties       hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of       an inconvenient forum to the maintenance of such action or proceeding in any such court.              (d)   Service of Process.  Each party hereto irrevocably consents to service of process       in the manner provided for notices in Section 11.1.  Nothing in this Agreement will affect the right       of any party hereto to serve process in any other manner permitted by Applicable Law.        Section 11.14 WAIVER  OF  JURY  TRIAL.   EACH  PARTY  HERETO  HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT  IT  MAY  HAVE  TO  A  TRIAL  BY  JURY  IN  ANY  LEGAL  PROCEEDING  DIRECTLY  OR                                       125 

 

INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED  ON  CONTRACT,  TORT  OR  ANY  OTHER  THEORY).   EACH  PARTY  HERETO  (A) CERTIFIES THAT  NO REPRESENTATIVE,  AGENT  OR  ATTORNEY  OF  ANY  OTHER  PERSON HAS  REPRESENTED,  EXPRESSLY  OR  OTHERWISE,  THAT  SUCH  OTHER  PERSON  WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.         Section 11.15 Confidentiality.   Each  of  the  Administrative  Agent,  the  Issuing  Bank  and  the  Lenders  agrees  to  maintain  the  confidentiality  of  the  Information  (as  defined  below),  except  that  Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors,  officers,  employees,  agents,  advisors  and  other  representatives (it  being  understood  that  the  Persons  to  whom such disclosure is made will be informed of the confidential nature of such Information and instructed  to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting  to have jurisdiction over it (including any self-regulatory authority, such as the National Association of  Insurance Commissioners), (c) to the extent required by Applicable Laws or regulations or by any subpoena  or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies  hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or  any other Credit Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement  containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant  in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or  (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to  the Borrower or any Subsidiary and its obligations, (g) with the consent of the Borrower or (h) to the extent  such Information (x) becomes publicly available other than as a result of a breach of this Section or (y)  becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective  Affiliates on a non-confidential basis from a source other than the Borrower.  In addition, the Administrative  Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement  to  market data collectors,  similar service providers to  the lending industry and service providers to the  Administrative Agent and the Lenders in connection with the administration of this Agreement, the other  Credit Documents, and the Commitments.   For purposes of this Section, “Information” means all information received from the Borrower or any of its  Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other  than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on  a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries, unless, in the case of  information received from the Borrower or any of its Subsidiaries after the date hereof, such information is  clearly  identified  at  the  time  of  delivery  as  non-confidential.   Any  Person  required  to  maintain  the  confidentiality of Information as provided in this Section shall be considered to have complied with its  obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of  such Information as such Person would accord to its own confidential information.   Each of the Administrative Agent, the Issuing Bank and the Lenders acknowledges that (i) the Information  may include material non-public information concerning the Borrower or any Subsidiary, as the case may  be, (ii) it has developed compliance procedures regarding the use of material non-pubic information and  (iii)  it  will  handle  such  material  non-public information  in  accordance  with  Applicable  Law,  including  United States federal and state securities laws.         Section 11.16 Usury Savings Clause.  Notwithstanding any other provision herein, the aggregate  interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or                                        126 

 

fees in connection therewith deemed in the nature of interest under Applicable Laws shall not exceed the Highest Lawful Rate.  If the rate of interest (determined without regard to the preceding sentence) under this  Agreement  at any time  exceeds the Highest Lawful  Rate, the aggregate outstanding amount of the Loans made hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect.  In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect.  Notwithstanding the foregoing, it is the intention of the Lenders and each of the Credit Parties to conform strictly to any applicable usury laws.  Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender’s option be applied to the aggregate outstanding amount of the Loans made hereunder or be refunded to each of the applicable Credit  Parties.  In  determining  whether  the  interest  contracted  for,  charged,  or  received  by  the Administrative  Agent  or  a  Lender  exceeds  the  Highest  Lawful  Rate,  such  Person  may,  to  the  extent permitted by Applicable Laws, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate,  allocate,  and  spread  in  equal  or  unequal  parts  the  total  amount  of  interest,  throughout  the contemplated term of the Obligations hereunder.         Section 11.17 Counterparts;  Integration;  Effectiveness.   This  Agreement  may  be  executed  in  counterparts (and by different parties hereto in different counterparts), each of which shall constitute an  original, but all of which when taken together shall constitute a single contract.  This Agreement and the  other  Credit  Documents,  and  any  separate  letter  agreements  with  respect  to  fees  payable  to  the  Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof  and supersede any and all previous agreements and understandings, oral or written, relating to the subject  matter hereof.  Except as provided in Section 5, this Agreement shall become effective when it shall have  been  executed  by  the  Administrative  Agent  and  when  the  Administrative  Agent  shall  have  received  counterparts  hereof  that,  when  taken  together,  bear  the  signatures  of  each  of  the  other  parties  hereto.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or .pdf file shall be  effective as delivery of a manually executed counterpart of this Agreement.         Section 11.18 No Advisory of Fiduciary Relationship.  In connection with all aspects of each  transaction  contemplated  hereby  (including  in  connection  with  any  amendment,  waiver  or  other  modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees,  and acknowledges its Affiliates’ understanding, that: (a)(i) the arranging and other services regarding this  Agreement  provided  by  the  Administrative  Agent  and  the  Lenders,  are  arm’s-length  commercial  transactions between the Credit Parties, on the one hand, and the Administrative Agent and the Lenders, on  the other hand, (ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors  to the extent it has deemed appropriate, and (iii) each of the Credit Parties is capable of evaluating, and  understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the  other Credit Documents; (b)(i) the Administrative Agent and each Lender is and has been acting solely as  a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not and will  not be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other  Person and (ii) neither the Administrative Agent nor any Lender has any obligation to any Credit Party or  any  of  their  Affiliates  with  respect  to  the  transactions  contemplated  hereby  except  those  obligations  expressly set forth herein and in the other Credit Documents; and (c) the Administrative Agent, each Lender  and their respective Affiliates may be engaged in a broad range of transactions that involve interests that                                        127 

 

differ from those of the Credit Parties and their Affiliates, and neither the Administrative Agent nor any Lender has any obligation to disclose any of such interests to any Credit Party or its Affiliates.  To the fullest extent permitted by law, each of the Credit Parties hereby waives and releases, any claims that it may have against the Administrative Agent and each Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.         Section 11.19 Electronic  Execution  of  Assignments  and  Other  Documents.   The  words  “execution,”  “signed,”  “signature,”  and  words  of  like  import  in  any  Assignment  Agreement  or  in  any  amendment, waiver, modification or consent relating hereto shall be deemed to include electronic signatures  or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or  enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the  case may be, to the extent and as provided for in any Applicable Laws, including the Federal Electronic  Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records  Act, or any other similar state laws based on the Uniform Electronic Transactions Act.         Section 11.20 USA PATRIOT Act.  Each Lender subject to the Patriot Act hereby notifies each  of the Credit Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and  record  information  that  identifies  each  of  the  Credit  Parties,  which  information  includes  the  name  and  address of each of the Credit Parties and other information that will allow such Lender to identify each of  the Credit Parties in accordance with the Patriot Act and the Beneficial Ownership Regulation.         Section 11.21 Acknowledgement and Consent to Bail-In of EEA Financial Institutions.         Notwithstanding  anything  to  the  contrary  in  any  Credit  Document  or  in  any  other  agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an EEA Financial Institution arising under any Credit Document,  to the  extent  such liability  is  unsecured,  may  be  subject  to  the  writedown  and  conversion  powers  of  an  EEA  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:              (a)   the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender that is an EEA Financial Institution; and              (b)   the effects of any Bail-In Action on any such liability, including, if applicable:                    (i)    a reduction in full or in part or cancellation of any such liability;                    (ii)   a  conversion  of  all,  or  a  portion  of,  such  liability  into  shares  or  other       instruments  of  ownership in such EEA Financial Institution,  its  parent  undertaking,  or a bridge       institution  that  may  be  issued  to  it  or  otherwise  conferred  on  it,  and  that  such  shares  or  other       instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability       under this Agreement or any other Credit Document; or                    (iii)  the variation of the terms of such liability in connection with the exercise             of the write-down and conversion powers of any EEA Resolution Authority.        Section 11.22 Existing Agreement.         Simultaneous  with  the  initial  Loans  advanced  hereunder,  all  amounts  due  under  the  Existing Agreement shall be repaid in full; provided that the parties hereby agree that there is no novation of the                                         128 

 

Existing Agreement.  On the Effective Date, the rights and obligations of the parties under the Existing Agreement shall be subsumed within and be governed by this Agreement.                             [Signatures on Following Page(s)]                                         129 

 

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

 

GUARANTOR:  PHYSICIANS REALTY TRUST, a Maryland real estate investment trust  By:  /s/ John T. Thomas John T. Thomas, President and Chief Executive Officer 

 

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

 

LENDER:  BMO HARRIS BANK N.A.  By:  /s/ Kevin Fennell Name:  Kevin Fennell Title:   Director 

 

LENDER:  CITIZENS BANK, N.A.  By:  /s/ Donald W. Woods Name:  Donald W. Woods Title:   Senior Vice President 

 

LENDER:  BANK OF AMERICA, N.A.  By:  /s/ Darren Merten Name:  Darren Merten Title:   Vice President 

 

 LENDER:  RAYMOND JAMES BANK, N.A.   By:  /s/ James Armstrong  Name:  James Armstrong  Title:   SVP 

 

ROYAL BANK OF CANADA  By:  /s/ Brian Gross Name:  Brian Gross Title:   Authorized Signatory 

 

 LENDER:  REGIONS BANK   By:  /s/ E. Mark Hardison  Name:  E. Mark Hardison  Title:   Managing Director 

 

 LENDER:  BRANCH BANKING & TRUST COMPANY   By:  /s/ Kenneth Blackwell  Name:  Kenneth Blackwell  Title:   Senior Vice President 

 

 LENDER:  CREDIT AGRICOLE CORPORATE AND  INVESTMENT BANK   By:  /s/ Gordon Yip  Name:  Gordon Yip  Title:   Director   By:  /s/ Karen L. Ramos  Name:  Karen L. Ramos  Title:   Managing Director 

 

LENDER:  JPMORGAN CHASE BANK, N.A.  By:  /s/ Ryan M. Dempsey Name:  Ryan M. Dempsey Title:   Authorized Officer 

 

LENDER:  MORGAN STANLEY BANK, N.A.  By:  /s/ Michael King Name:  Michael King Title:   Authorized Signatory 

 

LENDER:  MORGAN STANLEY SENIOR FUNDING, INC.  By:  /s/ Michael King Name:  Michael King Title:   Authorized Signatory 

 

LENDER:  PNC BANK, NATIONAL ASSOCIATION  By:  /s/ Susan Lunt Name:  Susan Lunt Title:   Vice President 

 

 LENDER:  COMERICA BANK, a Texas Banking Association   By:  /s/ Charles Weddell  Name:  Charles Weddell  Title:   Vice President 

 

 LENDER:  THE HUNTINGTON NATIONAL BANK   By:  /s/ David Tholt  Name:  David Tholt  Title:   Senior Vice President 

 

 LENDER:  ASSOCIATED BANK,  NATIONAL ASSOCIATION   By:  /s/ Mitchell Vega  Name:  Mitchell Vega  Title:   Vice President 

 

 LENDER:  SYNOVUS BANK   By:  /s/ David Bowman  Name:  David Bowman  Title:   Senior Corporate Banker

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