Document:

Exhibit 10.3

 

Execution Version

 

AMENDMENT NO. 1 TO THE

 

RIGHTS AGREEMENT

 

This Amendment No. 1 to the Rights Agreement (this “Amendment”), dated as of March 15, 2012, is made by and between Level 3 Communications, Inc., a Delaware corporation (the “Company”), and Wells Fargo Bank, N.A., as rights agent (the “Rights Agent”), and amends the Rights Agreement, dated as of April 10, 2011, between the Company and the Rights Agent (the “Rights Agreement”).  Capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings given them in the Rights Agreement.

 

RECITALS

 

WHEREAS, Southeastern Asset Management, Inc., a Tennessee corporation (“Southeastern”), beneficially owned more than 4.9% of the Company’s Common Shares at the time the Rights Agreement was adopted and, accordingly is not deemed an Acquiring Person under the terms of the Rights Agreement; and

 

WHEREAS, Southeastern and the Company are parties to a Standstill Agreement, dated as of May 20, 2011 (and as the same may be amended from time to time, the “Standstill Agreement”), which Standstill Agreement superseded earlier agreements between the Company and Southeastern from February 2005, November 2007 and October 2009; and

 

WHEREAS, the Company desires to amend the Rights Agreement to designate Southeastern as an Exempt Person thereunder, so long as any acquisition of additional shares by Southeastern complies with the terms of the Standstill Agreement; and

 

WHEREAS, pursuant to Section 27 of the Rights Agreement, the Board of Directors of the Company has determined that an amendment to the Rights Agreement as set forth herein is desirable and the Company and the Rights Agent now desire to evidence such amendment in writing.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth in the Rights Agreement and herein, the parties hereto agree as follows:

 

1.                                       Amendment and Restatement of Definition of “Exempt Person”.  The definition of “Exempt Person” in Section 1(l) of the Rights Agreement is hereby amended and restated in its entirety to read as follows:

 

“(l)                               “Exempt Person” shall mean (i) STT and its Affiliates and Associates unless and until STT (or any Affiliates of STT) acquires any Common Shares other than (x) pursuant to the transactions contemplated by the Amalgamation Agreement, (y) in a transaction that is permitted under Section 4 of the Stockholder Rights Agreement or (z) any transfers of Common Shares or other Company equity interests between STT and its Affiliates, (ii) any Person to whom STT transfers any amount of Common Shares permitted by Section 4.3(iii) of the Stockholder Rights Agreement unless and until such Person (or any Affiliates or Associates of such Person) acquires any additional Common Shares, (iii) Southeastern Asset Management, Inc., a Tennessee corporation

 

 

(“Southeastern”), and its Affiliates and Associates unless and until Southeastern (or any Affiliates of Southeastern) acquires any Common Shares other than (x) pursuant to the transactions contemplated by the Amalgamation Agreement, or (y) in a transaction that is permitted under Section 4 of the Standstill Agreement, dated as of May 20, 2011, as amended on March 15, 2012 and as may be further amended from time to time, by and between the Company and Southeastern, and (iv) any other Person whose Beneficial Ownership (together with all Affiliates and Associates of such Person) of 4.9% or more of the then-outstanding Common Shares, as determined by the Company’s Board of Directors in its sole discretion prior to the Distribution Date, (1) will not jeopardize or endanger the availability to the Company of any income tax benefit or (2) is otherwise in the best interests of the Company; provided, however, that such Person will cease to be an Exempt Person if the Board makes a contrary determination with respect to the effect of such Person’s Beneficial Ownership (together with all Affiliates and Associates of such Person) regardless of the reason therefor.”

 

2.                                       Miscellaneous.

 

(a)                                  This Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

(b)                                 Except as specifically modified herein, the Rights Agreement shall not otherwise be supplemented or amended by virtue of this Amendment, but shall remain in full force and effect.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, constitute a waiver or amendment of any provision of the Rights Agreement.  Upon and after the effectiveness of this Amendment, each reference in the Rights Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Rights Agreement, and each reference in any other document to “the Rights Agreement”, “thereunder”, “thereof” or words of like import referring to the Rights Agreement, shall mean and be a reference to the Rights Agreement as modified hereby.

 

(c)                                  This Amendment shall be deemed effective as of the date first written above, as if executed on such date.

 

(d)                                 This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made and performed entirely within such state.

 

[Remainder of this page intentionally left blank.]

 

2

 

IN WITNESS WHEREOF, the parties have caused this Amendment to the Rights Agreement to be duly executed and attested as of the day and year first written above.

 

	
Attest:
    	
 
    	
Level 3 Communications, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By
    	
/s/ Neil J. Eckstein
    	
 
    	
By
    	
/s/ John M. Ryan
    
	
 
    	
Name: Neil J. Eckstein
    	
 
    	
 
    	
Name: John M. Ryan
    
	
 
    	
Title: Senior Vice President
    	
 
    	
 
    	
Title: Executive Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
Wells Fargo Bank, N.A.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By
    	
/s/ Suzanne M. Swits
    	
 
    	
By
    	
/s/ Barbara M. Novak
    
	
 
    	
Name: Suzanne M. Swits
    	
 
    	
 
    	
Name: Barbara M. Novak
    
	
 
    	
Title: Vice President
    	
 
    	
 
    	
Title: Vice President
    

 

[Signature Page to Amendment No. 1 to Rights Agreement]Exh 10.15 AIU Tenth Amendment

Exhibit 10.15

    

TENTH AMENDMENT TO LEASE
This Tenth Amendment to Lease (“Tenth Amendment”) is made as of January 24, 2012 by and between Wells Fund XIII-REIT Joint Venture, a Georgia joint venture partnership (“Landlord”), and American Intercontinental University, Inc., a Georgia corporation (“AIU”).
RECITALS:
A.    Two Park Center, L.L.C. (“Original Landlord”) and Tenant entered into that certain Lease dated March 13, 2002 (the “Original Lease”) as amended by that certain (i) First Amendment to Lease dated May 3, 2002 (“First Amendment”), (ii) Second Amendment to Lease dated September 30, 2002 (“Second Amendment”), (iii) Third Amendment to Lease dated January 31, 2003 (“Third Amendment”), (iv) Fourth Amendment to Lease dated February 28, 2003 (“Fourth Amendment”), (v) Fifth Amendment to Lease dated March 30, 2004 (“Fifth Amendment”), Sixth Amendment to Lease dated September 2, 2004 (“Sixth Amendment”), Seventh Amendment to Lease dated October 14, 2005 (“Seventh Amendment”), Eighth Amendment to Lease dated July 19, 2010 (“Eighth Amendment”), and Ninth Amendment to Lease dated January 25, 2011 (“Ninth Amendment”) (the Original Lease together with the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment and Ninth Amendment are collectively referred to herein as the “Lease”) with respect to premises more particularly described therein (“Premises”) in the building located at 5550 Prairie Stone Parkway, Hoffman Estates, Illinois commonly known as Two Park Center (the “Building”).
B.    Landlord is the successor to Original Landlord.
C.    As of the date hereof, the Premises contain 73,586 rentable square feet, consisting of 48,993 rentable square feet on the third floor of the Building, 11,092 rentable square feet on the first floor of the Building (defined in the Eighth Amendment as the “Reduced Premises”), and Suite 200 at the Building containing approximately 13,501 rentable square feet (defined in the Sixth Amendment as the “Second Floor Expansion Space”).  The Term of the Lease is currently scheduled to expire December 31, 2012 (“Expiration Date”).
D.    Landlord and Tenant now desire to extend the Term of the Lease for one (1) year.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.    The recitals set forth above are hereby incorporated into and made a material part of this Tenth Amendment.  Capitalized terms used but not otherwise defined herein shall have the same meaning ascribed to them in the Lease.
2.    The Term of the Lease with respect to the entire 73,586 rentable square feet in the Premises is hereby extended through December 31, 2013.  
3.    Tenant shall continue to pay and perform its obligations under the Lease through the Expiration Date, as further extended and amended by this Tenth Amendment.  During 2013, Tenant shall pay Base Rent for the Premises in the amount of Seventy Thousand Five Hundred Nineteen and 92/100 Dollars ($70,519.92) per month, payable monthly in advance, in accordance with the requirements of the Lease.  Tenant shall 

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continue to pay Tenant's Proportionate Share of Building Operating Expenses and Tenant's Proportionate Share of Taxes through the extended Term.
4.    Upon prior written notice to Tenant, Landlord shall continue to have the right to show the Second Floor Expansion Space to prospective tenants, provided that Landlord shall use commercially reasonable efforts to minimize disruption with Tenant's operations in the Premises.  Landlord continues to reserve the right to substitute for the Second Floor Expansion Space other premises at the Building (herein referred to as the "Relocation Premises"), provided:  (i) the Relocation Premises shall be similar to the Second Floor Expansion Space in square footage area, (ii) Landlord shall give Tenant at least ninety (90) days' written notice before making such change, and the parties shall execute an amendment to the Lease confirming the change within thirty (30) days after either party shall request the same; and (iii) Landlord shall pay directly all of the out of pocket expenses and costs associated with Landlord's relocation of the Second Floor Expansion Space to the Relocation Premises at Landlord's sole cost.  In addition, at Landlord's sole cost, Landlord shall be responsible for reinstalling the Tenant's personal property and equipment in the Relocation Premises, and improving the Relocation Premises so that they are substantially similar to the Second Floor Expansion Space (including, but not limited to, cabling and network systems), and, (iv) such move shall be made during evenings, weekends, or otherwise so as to incur the least inconvenience to Tenant.  Tenant waives any claim for abatement of Rent or loss of profits due to such relocation.  Tenant shall cooperate with Landlord in connection with any relocation, including, without limitation, providing timely responses to any requests for review and approval of proposed plans for tenant improvements to the Relocation Premises.  Upon the date of such relocation, the Second Floor Expansion Space shall be removed from the Premises, the Relocation Premises shall become and be deemed part of the Premises hereunder and all the terms, covenants and conditions of this Lease shall be applicable to the Relocation Premises.  After such relocation, Landlord and Tenant, within thirty (30) days after the written request of either Landlord or Tenant, shall execute a written amendment to the Lease confirming the foregoing relocation.
5.     Tenant hereby accepts the Premises in its current "as is" condition.  Tenant acknowledges that Landlord has made no agreement to alter, remodel, decorate, clean or improve the Premises or Building in connection with this Tenth Amendment.
6.    Neither Landlord nor Tenant has dealt with any broker or agent in connection with the negotiation or execution of this Tenth Amendment, other than Cushman & Wakefield and CB Richard Ellis (collectively, the “Brokers”), whose commissions shall be paid by Landlord in accordance with their separate agreement.  Tenant and Landlord shall each indemnify the other against all costs, expenses, attorneys' fees, and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under the indemnifying party other than the Brokers.

7.    This Tenth Amendment sets forth the entire agreement with respect to the matters set forth herein.  There have been no additional oral or written representations or agreements.   In the case of any inconsistency between the provisions of this Tenth Amendment and the Lease, the provisions of this Tenth Amendment shall control to the extent necessary to resolve any inconsistency.
8.    If any provision contained in this Tenth Amendment is rendered invalid or unenforceable by a court of competent jurisdiction, it shall not affect the remaining provisions of this Tenth Amendment and the Lease, which shall remain in full force and effect.
9.    This Tenth Amendment shall not be binding until executed and delivered by both parties.

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10.    This Tenth Amendment may be executed in any number of counterparts, any one of which shall be an original, but all of which together shall be one and the same instrument.
11.    As modified by this Tenth Amendment, the Lease is hereby ratified and confirmed, and shall remain in full force and effect. 

(Signatures appear on following page.)

Page 3

IN WITNESS WHEREOF, the parties have executed this Tenth Amendment as of the date first above written.
LANDLORD:

WELLS FUND XIII-REIT JOINT VENTURE PARTNERSHIP,
a Georgia joint venture partnership

By: WELLS REAL ESTATE FUND XIII, L.P., 
       a Georgia limited partnership

By:      Wells Capital, Inc., 
a Georgia corporation,
as General Partner

               By:  /s/ Randall D. Fretz
        Name:  Randall D. Fretz
          Title:  Sr. Vice President

By: PIEDMONT OPERATING PARTNERSHIP, LP,
      a Delaware limited partnership

By:    Piedmont Office Realty Trust, Inc.,
a Maryland corporation,
its sole General Partner

                        
By: /s/ Joseph H. Pangburn
Name: Joseph H. Pangburn
Title:  Senior Vice President
                                        

 
AIU:

AMERICAN INTERCONTINENTAL UNIVERSITY, INC.
a Georgia corporation

By: /s/ Michael Graham
Its: Michael Graham VP

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REAFFIRMATION OF GUARANTY

THE UNDERSIGNED, as guarantor of Tenant's obligations under the Lease pursuant to that certain Guaranty dated March 13, 2002 (the “Guaranty”) and as of the date of this Tenth Amendment, hereby:  (a) consents to this Tenth Amendment; (b) ratifies the Guaranty;  (c) confirms that the Guaranty remains in full force and effect; and (d) agrees that the Guaranty includes, without limitation, all of Tenant's obligations under the Lease as amended by the Tenth Amendment.

CAREER EDUCATION CORPORATION, a
Delaware corporation

By: /s/ Michael Graham

Name: Michael Graham

Title: Exec. V.P. & C.F.O.

Date: 1/18/12

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