Document:

creditagreement.htm

	
Exhibit 10.1

 

EXECUTION COPY

 

CREDIT AGREEMENT

 

dated as of April 8, 2009

 

among

 

J. C. PENNEY COMPANY, INC.,

J. C. PENNEY CORPORATION, INC.,

J. C. PENNEY PURCHASING CORPORATION,

 

The Lenders Party Hereto,

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

and

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

as LC Agent

___________________________

 

J.P. MORGAN SECURITIES INC.,

BANC OF AMERICA SECURITIES LLC,

BARCLAYS CAPITAL and

WACHOVIA BANK, NATIONAL ASSOCIATION

as Joint Bookrunners and Co-Lead Arrangers,

 

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent

 

and

 

BANK OF AMERICA, N.A.,

BARCLAYS BANK PLC and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Joint Documentation Agents

 

 

[CS&M Reference No. 6701-806]

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

	 	
ARTICLE I

Definitions

 

	 
	 SECTION 1.01.  	Defined Terms 	   1
	 SECTION 1.02.	Classification of Loans and Borrowings 	 22
	 SECTION 1.03. 	Terms Generally 	 22
	 SECTION 1.04. 	Accounting Terms; GAAP 	 23
	 	
 

ARTICLE II

The Credits

 

	 
	 SECTION 2.01.	Commitments 	 23
	 SECTION 2.02. 	Loans and Borrowings 	 23
	 SECTION 2.03. 	Requests for Revolving Borrowings	 24
	 SECTION 2.04. 	Swingline Loans	 25
	 SECTION 2.05.	Letters of Credit	 26
	 SECTION 2.06.	Funding of Borrowings	 32
	 SECTION 2.07.	Interest Elections	 33
	 SECTION 2.08.	Termination and Reduction of Commitments	 34
	 SECTION 2.09. 	Repayment of Loans; Evidence of Debt	 34
	 SECTION 2.10. 	Prepayment of Loans	 35
	 SECTION 2.11. 	Fees 	 36
	 SECTION 2.12. 	Interest	 37
	 SECTION 2.13.	Alternate Rate of Interest	 37
	 SECTION 2.14. 	Increased Costs	 38
	 SECTION 2.15. 	Break Funding Payments	 39
	 SECTION 2.16. 	Taxes	 40
	 SECTION 2.17. 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	 43
	 SECTION 2.18.	Mitigation Obligations; Replacement of Lenders	 44
	 SECTION 2.19.	Reserved.	 47
	 SECTION 2.20. 	Borrowing Subsidiaries	 47
	 SECTION 2.21. 	Defaulting Lenders	 47
	 	
 

 ARTICLE III

Representations and Warranties

 

	 
	 SECTION 3.01.	Organization; Powers	 50
	 SECTION 3.02. 	Authorization; Enforceability	 50
	 SECTION 3.03.	Governmental Approvals; No Conflicts	 50
	 SECTION 3.04.	Financial Condition; No Material Adverse Change	 50
	 SECTION 3.05.	Properties 	 51

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	 SECTION 3.06. 	Litigation and Environmental Matters 	 51
	 SECTION 3.07. 	Compliance with Laws and Agreements 	 51
	 SECTION 3.08. 	Investment Company Status	 51
	 SECTION 3.09.	Taxes	 51
	 SECTION 3.10.	ERISA	 52
	 SECTION 3.11.	Disclosure	 52
	 SECTION 3.12. 	Material Subsidiaries 	 52
	 	
 

ARTICLE IV

Conditions

 

	 
	 SECTION 4.01. 	Effective Date	 52
	 SECTION 4.02. 	Each Credit Event 	 54
	 SECTION 4.03.	Borrowing Subsidiaries 	 54
	 	
 

ARTICLE V

Affirmative Covenants

 

	 
	 SECTION 5.01. 	Financial Statements; Ratings Change and Other Information	 55
	 SECTION 5.02.	Notices of Material Events	 56
	 SECTION 5.03.	Information Regarding Collateral 	 57
	 SECTION 5.04. 	Existence; Conduct of Business	 58
	 SECTION 5.05.	Payment of Obligations	 58
	 SECTION 5.06.	Maintenance of Properties	 58
	 SECTION 5.07. 	Insurance	 58
	 SECTION 5.08.  	Books and Records; Inspection Rights; Inventory Audits 	 58
	 SECTION 5.09.	Compliance with Laws 	 59
	 SECTION 5.10.	Use of Proceeds and Letters of Credit 	 59
	 SECTION 5.11.	Additional Guarantee Parties 	 59
	 SECTION 5.12.	Further Assurances	 60
	 SECTION 5.13. 	Maintenance of Ratings 	 60
	 SECTION 5.14.	Prepayment Avoidance 	 60
	 	
 

ARTICLE VI

Negative Covenants

 

	 
	 SECTION 6.01. 	Indebtedness 	 60
	 SECTION 6.02.	Liens 	 61
	 SECTION 6.03. 	Fundamental Changes 	 63
	 SECTION 6.04. 	Investments, Loans, Advances, Guarantees and Acquisitions	 63
	 SECTION 6.05.	Asset Sales 	 64
	 SECTION 6.06. 	Sale and Leaseback Transactions 	 65
	 SECTION 6.07.	Restricted Payments 	 65
	 SECTION 6.08. 	Restrictive Agreements 	 66

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	 SECTION 6.09. 	Leverage Ratio	 66
	 SECTION 6.10. 	Fixed Charge Coverage Ratio	 67
	 SECTION 6.11.  	Asset Coverage Ratio 	 67
	 SECTION 6.12. 	Restriction on Non-Material Subsidiaries 	 67
	 	
 

 ARTICLE VII

 Events of Default

 

	 
	 SECTION 7.01.	Events of Default 	 67
	 SECTION 7.02. 	Exclusion of Immaterial Subsidiaries 	 70
	 	
 

 ARTICLE VIII

The Administrative Agent

 

	 
	 	 	 
	 	
 ARTICLE IX

Miscellaneous

 

	 
	 SECTION 9.01.	Notices	 72
	 SECTION 9.02. 	Waivers; Amendments	 73
	 SECTION 9.03. 	Expenses; Indemnity; Damage Waiver	 74
	 SECTION 9.04.	Successors and Assigns 	 76
	 SECTION 9.05. 	Survival 	 79
	 SECTION 9.06.  	Counterparts; Integration; Effectiveness 	 79
	 SECTION 9.07.	Severability	 79
	 SECTION 9.08.	Right of Setoff 	 79
	 SECTION 9.09.	Governing Law; Jurisdiction; Consent to Service of Process 	 80
	 SECTION 9.10.	WAIVER OF JURY TRIAL 	 81
	 SECTION 9.11.	Headings	 81
	 SECTION 9.12. 	Confidentiality	 81
	 SECTION 9.13. 	Interest Rate Limitation 	 82
	 SECTION 9.14.	USA Patriot Act 	 82
	 SECTION 9.15. 	Waiver Under Existing Credit Agreement	 82
	 	 	 

 

	 SCHEDULES: 	 
	 Schedule 2.01 -- Commitments	 
	 Schedule 2.05 -- Issuing Banks	 
	 Schedule 3.06 -- Disclosed Matters	 
	 Schedule 3.12 -- Material Subsidiaries	 
	 Schedule 6.01 -- Existing Indebtedness	 
	 Schedule 6.02 -- Existing Liens	 
	 Schedule 6.04 -- Existing Investments	 

 

iii

 

 

 

 

 

 

Schedule 6.08 -- Existing Restrictions

	 	 	 
	 EXHIBITS: 	 	 
	 	 	 
	
Exhibit A  --

	
Form of Assignment and Assumption

	 
	Exhibit B  --	Forms of Opinion of Counsel to the Loan Parties	 
	Exhibit C  --	Form of Guarantee and Collateral Agreement	 
	
Exhibit D  --

	
Form of U.S. Tax Compliance Certificate

	 

 

iv

 

 

 

 

 

 

 

CREDIT AGREEMENT dated as of April 8, 2009, among J. C. PENNEY COMPANY, INC., J. C. PENNEY CORPORATION, INC., J. C. PENNEY PURCHASING CORPORATION, the LENDERS party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, and WACHOVIA BANK, NATIONAL ASSOCIATION, as LC Agent.

 

The parties hereto agree as follows:

 

ARTICLE I

 

 

Definitions

 

SECTION 1.01. Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

 

“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

 

“Account Parties” means the Parent Borrower and Purchasing.

 

“Additional Costs” has the meaning assigned to such term in Section 2.14(c).

 

“Additional Grantor” means any Subsidiary of the Parent Borrower that is designated by the Parent Borrower, with the prior written consent of the Administrative Agent, to become a party to the Collateral Agreement for the purpose of granting a security interest in such Subsidiary’s inventory; provided that the Parent Borrower shall cause the Collateral and Guarantee Requirement to be satisfied with respect to such Subsidiary immediately upon such Subsidiary becoming an Additional Grantor.

 

“Additional Inventory” means, with respect to any Additional Grantor, any inventory owned by such Additional Grantor that the Parent Borrower and the Administrative Agent agree, in writing, shall be deemed to be “Collateral” under the Collateral Agreement.

 

“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the Lenders hereunder.

 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

 

 

 

 

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“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one-month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%; provided that, for the avoidance of doubt, for purposes of calculating the Alternate Base Rate, the Adjusted LIBO Rate for any day shall be based on the Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of such page) at approximately 11:00 a.m. London time on such day.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively.

 

“Applicable Lending Office” means, for each Issuing Bank or Lender, the office or branch of such Issuing Bank or Lender (or an affiliate of such Issuing Bank or Lender) designated in an Administrative Questionnaire delivered by such Issuing Bank or Lender to the Administrative Agent or such other office or branch of such Issuing Bank or Lender as such Issuing Bank or Lender may, from time to time, in accordance with the terms of this Agreement, specify to the Administrative Agent, the Borrowers and the Account Parties as the office or branch by which its Letters of Credit, Loans or Commitments, as applicable, are to be made and maintained.

 

“Applicable Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment; provided that in the case of Section 2.21 when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the percentage of the total Commitments (disregarding any Defaulting Lender’s Commitment) represented by such Lender’s Commitment.  If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments.

 

“Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar Revolving Loan, or with respect to the participation fees in respect of Stand-by Letters of Credit or the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar Spread”, “Stand-by Letter of Credit Fee Rate” or “Commitment Fee Rate”, as the case may be, based upon the Credit Rating of Holdings assigned by Moody’s and S&P, respectively, applicable on such date:

 

	
Credit Ratings

Moody’s/S&P:

	
ABR

Spread

	
Eurodollar Spread

	
Stand-by Letter of Credit

 Fee Rate

	
Commitment Fee Rate

	
Category 1

≥Baa2/BBB

	
2.00%

	
3.00%

	
3.00%

	
0.50%

	
Category 2

Baa3/BBB-

	
2.50%

	
3.50%

	
3.50%

	
0.50%

	
Category 3

Ba1/BB+

	
3.00%

	
4.00%

	
4.00%

	
0.50%

	
Category 4

≤Ba2/BB

	
3.50%

	
4.50%

	
4.50%

	
0.75%

 

For purposes of the foregoing, (a) if either Moody’s or S&P shall not have in effect a Credit Rating (other than by reason of the circumstances referred to in the last sentence of this definition) the Applicable Rate shall be determined on the basis of the rating agency that

 

 

 

 

 

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does then have a Credit Rating in effect; (b) if the Credit Ratings established or deemed to be established by Moody’s and S&P shall fall within different Categories, the Applicable Rate shall be based on the lower of the two Credit Ratings; (c) if neither Moody’s nor S&P has in effect a Credit Rating (other than by reason of the circumstances referred to in the last sentence of this definition) the Credit Ratings shall be deemed to be those set forth in Category 4; (d) the Applicable Rate shall be deemed to be the Applicable Rate set forth in Category 4 at any time that an Event of Default has occurred and is continuing and (e) if the Credit Ratings established or deemed to have been established by Moody’s and S&P shall be changed (other than as a result of a change in the rating system of Moody’s or S&P), such change shall be effective as of the date on which it is first announced by the applicable rating agency, irrespective of when notice of such change shall have been furnished by Holdings or the Parent Borrower to the Administrative Agent and the Lenders pursuant to Section 5.01 or otherwise.  Each change in the Applicable Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change.  If the rating system of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of rating obligors, the Parent Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of Credit Ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to the Credit Rating most recently in effect prior to such change or cessation.

 

“Asset Coverage Certificate” means a certificate setting forth the calculation of the Asset Coverage Ratio and signed on behalf of the Parent Borrower by a Financial Officer.

 

“Asset Coverage Ratio” means, on any date, the ratio of (a) the book value of all Eligible Inventory as of the last day of the fiscal month ended on or most recently prior to such date, determined in accordance with GAAP as applied on a consistent basis (including the deduction of any marked-down inventory reserves in accordance with GAAP), to (b) the sum of (i) the total amount that Holdings and the Subsidiaries would be required to pay (taking into account any netting agreements) if all Swap Agreements to which they are parties were terminated as of the last day of the fiscal month ended on or most recently prior to such date (but only to the extent that such payment obligations constitute Obligations) plus (ii) total Revolving Credit Exposures as of such date.

 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent.

 

“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments.

 

“Board” means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Borrowers” means the Parent Borrower and, if eligible to be a Borrower at the time in accordance with Section 2.20, each Borrowing Subsidiary.

 

 

 

 

 

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“Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect or (b) a Swingline Loan.

 

“Borrowing Request” means a request by a Borrower for a Revolving Borrowing in accordance with Section 2.03.

 

“Borrowing Subsidiary” means any Subsidiary with respect to which a Subsidiary Borrower Election shall have been executed and delivered as provided in Section 2.20 and with respect to which a Subsidiary Borrower Termination has not been executed as provided in Section 2.20.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market.

 

“Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

 

“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person other than Holdings or a wholly owned Subsidiary of Holdings of any Equity Interest in the Parent Borrower; (b) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) other than any retirement or savings plan for employees of Holdings and its Subsidiaries, of Equity Interests representing more than 40% of either the aggregate ordinary voting power or the aggregate equity value represented by the issued and outstanding Equity Interests in Holdings, other than pursuant to a Permitted Holding Company Reorganization; or (c) occupation of a majority of the seats (other than vacant seats) on the board of directors of Holdings by Persons who were neither (i) nominated by the board of directors of Holdings nor (ii) appointed by directors so nominated.

 

“Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.14(b), by any lending office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement.

 

“Charges” has the meaning assigned to such term in Section 9.13.

 

 

 

 

 

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“Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.

 

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

 

“Collateral” means any and all “Collateral”, as defined in the Collateral Agreement.

 

“Collateral Agreement” means the Guarantee and Collateral Agreement among the Guarantee Parties, the Additional Grantors and the Administrative Agent, substantially in the form of Exhibit C.

 

“Collateral and Guarantee Requirement” means the requirement that:

 

(a)  the Administrative Agent shall have received from each Loan Party either (i) a counterpart of the Collateral Agreement duly executed and delivered on behalf of such Loan Party or (ii) in the case of any Person that becomes a Loan Party after the Effective Date, a supplement to the Collateral Agreement, in the form specified therein, duly executed and delivered on behalf of such Loan Party;

 

(b)  at any time other than during a Release Period, all documents and instruments, including Uniform Commercial Code financing statements, required by law or reasonably requested by the Administrative Agent to be filed, registered or recorded to create the Liens intended to be created by the Collateral Agreement and perfect such Liens to the extent required by, and with the priority required by, the Collateral Agreement, shall have been filed, registered or recorded or delivered to the Administrative Agent for filing, registration or recording; and

 

(c)  each Loan Party shall have obtained all consents and approvals required to be obtained by it in connection with the execution and delivery of the Collateral Agreement, the performance of its obligations thereunder and, at any time other than during a Release Period, the granting by it of the Liens thereunder.

 

“Commitment” means, with respect to each Lender, the commitment of such Lender to make Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable.  The initial aggregate amount of the Lenders’ Commitments is $750,000,000.

 

“Consolidated EBITDA” means, for any period, Consolidated Net Income for such period (disregarding any non-cash charges or credits related to any Plan, any non-qualified supplemental pension plan maintained, sponsored or contributed to by Holdings or any ERISA Affiliate, or any Multiemployer Plan) plus (a) without duplication and to the extent deducted in determining such Consolidated Net Income, the sum of (i) consolidated interest expense for such

 

 

 

 

 

6

period plus (ii) consolidated financing costs associated with securitization programs for such period plus (iii) consolidated income tax expense for such period plus (iv) all amounts attributable to depreciation and amortization for such period plus (v) any extraordinary or other non-recurring non-cash charges (it being understood that the write-down or write-off of any inventory or accounts receivable shall not be construed to be a non-recurring non-cash charge) for such period, provided that in the event Holdings or any Subsidiary makes any cash payment in respect of any such non-cash charge, such cash payment shall be deducted from Consolidated EBITDA in the period in which such payment is made, and minus (b) without duplication and to the extent included in determining such Consolidated Net Income, any extraordinary or other non-recurring gains for such period, all determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Interest Expense” means, for any period, the excess of (a) the interest expense (including imputed interest expense in respect of Capital Lease Obligations) of Holdings and the Subsidiaries for such period, including any interest that is capitalized rather than expensed for such period minus (b) interest income of Holdings and the Subsidiaries for such period, all determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” means, for any period, the net income or loss of Holdings and the Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income of any Person (other than Holdings) in which any other Person (other than Holdings or any Subsidiary or any director holding qualifying shares in compliance with applicable law) owns an Equity Interest, except to the extent of the amount of dividends or other distributions actually paid to Holdings or any of the Subsidiaries during such period, and (b) the income or loss of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with Holdings or any Subsidiary or the date that such Person’s assets are acquired by Holdings or any Subsidiary.

 

“Consolidated Rent Expense” means, for any period, the rental expense in respect of stores and other real property (other than Capital Lease Obligations) deducted in determining Consolidated Net Income for such period.

 

“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.

 

“Credit Rating” means, in the case of Moody’s, the “Corporate Family Rating” (or its equivalent) assigned by Moody’s to Holdings and, in the case of S&P, the “Issuer Credit Rating” assigned by S&P to Holdings.

 

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

 

“Defaulting Lender” means any Lender, as determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans or participations in Letters of Credit or

 

 

 

 

 

7

Swingline Loans within three Business Days of the date required to be funded by it hereunder, (b) notified the Parent Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations generally under other agreements in which it commits to extend credit, (c) failed, within three Business Days after request by the Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit and Swingline Loans, (d) otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith dispute, or (e)(i) become or is insolvent or has a parent company that has become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment.

 

“Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06.

 

“Disqualified Equity Interest” means any Equity Interest in Holdings that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable, either mandatorily or at the option of the holder thereof), or upon the happening of any event or condition:

 

(a) matures or is mandatorily redeemable (other than solely for Equity Interests in Holdings that do not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests), whether pursuant to a sinking fund obligation or otherwise, prior to the Specified Date;

 

(b) is convertible or exchangeable at the option of the holder thereof for Indebtedness or Equity Interests (other than solely for Equity Interests in Holdings that do not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests), prior to the Specified Date; or

 

(c) is redeemable (other than solely for Equity Interests in Holdings that do not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests) or is required to be repurchased by Holdings or any of its Affiliates, in whole or in part, at the option of the holder thereof, prior to the Specified Date; provided that this clause (c) shall not apply to any requirement of mandatory redemption or repurchase that is contingent upon an asset disposition or the incurrence of Indebtedness if such mandatory redemption or repurchase can be avoided through repayment or prepayment of Loans or through investments by Holdings in assets to be used in their businesses.

 

“dollars” or “$” refers to lawful money of the United States of America.

 

 

 

 

 

8

“Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).

 

“Eligible In-Transit Inventory” means all import inventory of the Loan Parties that is in transit from a location outside of the United States of America for which title remains with a Loan Party and which is fully insured; provided that the aggregate book value of all Eligible In-Transit Inventory shall not exceed 5% of the aggregate book value of all Eligible Inventory.

 

“Eligible Inventory” means (a) all inventory of the Loan Parties located in the United States of America and all Eligible In-Transit Inventory, other than consignment inventory (including inventory subject to “sale or return” arrangements), and (b) all Additional Inventory located in the United States of America, other than consignment inventory (including inventory subject to “sale or return” arrangements); provided that, unless and until the Liens granted under the Collateral Agreement are released as provided in Section 6.15(d) of the Collateral Agreement, any such inventory, Eligible In-Transit Inventory or Additional Inventory shall constitute “Eligible Inventory” only if such inventory is subject to a perfected first-priority Lien securing the Obligations pursuant to the terms of the Collateral Agreement.

 

“Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.

 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of Holdings or any Subsidiary 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 liability is assumed or imposed with respect to any of the foregoing.

 

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.

 

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

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with Holdings, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

 

 

 

 

 

9

“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) a failure by any Plan to satisfy the minimum funding standard (as defined in Section 412 of the Code or Section 302 of ERISA) applicable to such Plan, whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) a determination that any Plan is, or is expected to be, in “at-risk” status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code); (e) the incurrence by Holdings or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (f) the receipt by Holdings or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans (other than a termination initiated by Holdings or an ERISA Affiliate) or to appoint a trustee to administer any Plan; (g) the incurrence by Holdings or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; (h) the receipt by Holdings or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from Holdings or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (i) the occurrence of a non-exempt “prohibited transaction” (as defined in Section 4975 of the Code or Section 406 of ERISA) with respect to which Holdings or any ERISA Affiliate is a “disqualified person” (within the meaning of Section 4975 of the Code) or a “party in interest” (within the meaning of Section 406 of ERISA) or could otherwise be liable; or (j) any other event or condition with respect to a Plan or Multiemployer Plan that could result in liability of Holdings or any ERISA Affiliate.

 

“Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.

 

“Event of Default” has the meaning assigned to such term in Section 7.01.

 

“Excluded Subsidiary” means, at any date, any Realty Company that is not a Material Subsidiary as of such date.  For purposes of determining whether a Realty Company is a Material Subsidiary, the computations required by the definition of the term “Material Subsidiary” shall be made including the accounts of all Excluded Subsidiaries.

 

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of any Loan Party under this Agreement or any other Loan Document, any (a) Other Connection Taxes, (b) U.S. federal withholding Tax imposed by a requirement of law in effect at the time a Foreign Lender (other than an assignee under Section 2.18(b)) becomes a party to this Agreement (or designates a new lending office), with respect to any payment made by or on account of any obligation of a Borrower to such Foreign Lender, except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrowers with respect to such

 

 

 

 

 

10

withholding Tax under Section 2.16(a) or (c) Taxes attributable to a Lender’s failure to comply with Section 2.16(g).

 

“Existing Credit Agreement” means the Credit Agreement dated as of April 7, 2005, as amended, among Holdings, the Account Parties, the financial institutions named therein as lenders, JPMorgan Chase Bank, N.A., as administrative agent, and Wachovia Bank, National Association, as LC Agent.

 

“Existing Indentures” means (a) the Indenture dated as of October 1, 1982, as amended, between the Parent Borrower and U.S. Bank National Association (successor to Bank of America National Trust and Savings Association), as trustee and (b) the Indenture dated as of April 1, 1994, as amended, between the Parent Borrower and U.S. Bank National Association (successor to Bank of America National Trust and Savings Association), as trustee.

 

“Existing Letter of Credit” means any letter of credit that is outstanding under the Existing Credit Agreement on the Effective Date.

 

“Extended Letter of Credit” has the meaning assigned to such term in Section 2.05(k).

 

“Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 

“Fee Receiver” means any Person for whose account any payments of fees are made under Section 2.11(a) or Section 2.11(b) of this Agreement.

 

“Financial Officer” means the chief financial officer, principal accounting officer, vice president-chief accountant, treasurer, assistant treasurer or controller of Holdings or the Parent Borrower.

 

“Fitch” means Fitch, Inc.

 

“Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) Consolidated EBITDA plus Consolidated Rent Expense to (b) Consolidated Interest Expense plus Consolidated Rent Expense, in each case for such period.

 

“Foreign Lender” means any Lender or Issuing Bank with respect to any Borrower, that (a) is not a “United States person” as defined by Section 7701(a)(30) of the Code (a “U.S. Person”), or (b) is a partnership or other entity treated as a partnership for U.S. federal income tax purposes which is a U.S. Person, but only to the extent the beneficial owners (including indirect partners if its direct partners are partnerships or other entities treated as partnerships for U.S. federal income tax purposes are U.S. Persons) are not U.S. Persons.

 

 

 

 

 

11

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

 

“Funded Indebtedness” of any Person means, at any date for the determination thereof, without duplication, the sum of (a) the outstanding aggregate principal amount of all Indebtedness of such Person for borrowed money or of a type described in clause (c) or (d) of the definition of the term “Indebtedness” and (b) the outstanding aggregate principal amount of all Indebtedness of others of the type described in the preceding clause (a) for the payment of which such Person is responsible or liable pursuant to a Guarantee or otherwise; provided that Funded Indebtedness shall not include (i) any obligations under leases or any guarantees of obligations of others under leases, (ii) any obligations of such Person in respect of letters of credit, (iii) except as provided in clause (b) above, any contingent obligations of such Person and (iv) any Indebtedness of Holdings to any Subsidiary or of any Subsidiary to Holdings or any other Subsidiary.  It is understood that for the purposes of this definition the term “principal” when used at any date with respect to any Indebtedness issued at a discount shall mean the amount of principal of such Indebtedness that could be declared due and payable on that date upon the occurrence of one or more events permitting the acceleration of such Indebtedness pursuant to the terms of such Indebtedness.

 

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

 

“Governmental Authority” means the government of the United States of America, any other nation or 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.

 

“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

 

“Guarantee Parties” means Holdings, the Parent Borrower, Purchasing, the Material Subsidiaries and each Non-Material Subsidiary that is required to satisfy the Collateral

 

 

 

 

 

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and Guarantee Requirement in order for Holdings and the Parent Borrower to remain in compliance with the provisions of Section 6.12.

 

“Hazardous Materials”  means all explosive or radioactive materials, substances or wastes and all hazardous or toxic materials, substances, wastes or other pollutants, including petroleum or petroleum distillates or by-products, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other materials, substances or wastes of any nature regulated pursuant to any Environmental Law.

 

“Holdings” means J. C. Penney Company, Inc., a Delaware corporation.

 

“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (e) all Indebtedness of others 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 owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (i) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances and (j) all Off-Balance Sheet Liabilities.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes.

 

“Information Memorandum” means the Confidential Information Memorandum dated March 2009 relating to the Parent Borrower and the Transactions.

 

“Intercreditor Agreement” means an intercreditor agreement among the Loan Parties, the Administrative Agent and the trustee, agent or other representative for holders of any Indebtedness secured by second-priority Liens contemplated by clause (k) of Section 6.02, which intercreditor agreement shall be consistent with the then existing market practice and reasonably acceptable to the Required Lenders (it being understood that (i) any such intercreditor agreement shall be considered approved by a Lender if made available to such Lender by the Administrative Agent (through Intralinks or similar facility) and such Lender is informed that such intercreditor agreement shall be considered approved by it if there is no objection within three Business Days, and no such objection is made and (ii) such intercreditor agreement shall be deemed accepted if approved or deemed approved by the Required Lenders).

 

 

 

 

 

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“Interest Election Request” means a request by a Borrower to convert or continue a Revolving Borrowing in accordance with Section 2.07.

 

“Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan), the last day of each March, June, September and December, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid.

 

“Interest Period” means, with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months (or, with the consent of each Lender, nine or twelve months) thereafter, as the applicable Borrower may elect; provided that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (b) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

“Issuing Bank” means any Lender or Affiliate of a Lender that agrees (as provided in Section 2.05(i)) to issue Letters of Credit, in its capacity as an issuer of Letters of Credit, and its respective successors and assigns in such capacity as provided in Section 2.05(i).  The initial Issuing Banks are identified in Schedule 2.05.  Subject to the consent of the Parent Borrower, which consent shall not be unreasonably withheld, any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by one or more of its Affiliates, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

 

“LC Agent” means Wachovia Bank, National Association.

 

“LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of Credit.

 

“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Account Parties at such time.  The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

 

 

 

 

 

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“Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.  Unless the context otherwise requires, the term “Lenders” includes the Swingline Lenders.

 

“Letter of Credit” means any letter of credit issued pursuant to this Agreement.  Each Existing Letter of Credit shall be deemed to constitute a Letter of Credit as of the Effective Date.  Each Letter of Credit shall be either a Trade Letter of Credit or a Stand-by Letter of Credit.

 

“Leverage Ratio” means, on any date, the ratio of (a) Funded Indebtedness of Holdings and its Subsidiaries (on a consolidated basis) as of such date to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters of Holdings ended on such date.

 

“LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period.  In the event that such rate is not available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.

 

“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset.

 

“Loan” means a loan made by a Lender to a Borrower pursuant to this Agreement.

 

“Loan Documents” means this Agreement and the Collateral Agreement.

 

“Loan Parties” means Holdings, the Parent Borrower, the Borrowing Subsidiaries, the Account Parties, the Additional Grantors and each Material Subsidiary that is a Guarantee Party.

 

“Material Adverse Effect” means (a) a materially adverse effect on the business, assets, operations or condition of Holdings and its Subsidiaries, taken as a whole, (b) a material impairment of the ability of the Loan Parties to perform any of their obligations under the Loan Documents or (c) a material impairment of the rights of or benefits available to the Lenders or

 

 

 

 

 

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the Administrative Agent under any Loan Document (except the Collateral Agreement during a Release Period) (other than any such impairment of rights or benefits that is primarily attributable to (i) action taken by one or more Lenders or the Administrative Agent (excluding any action against one or more Lenders or the Administrative Agent taken by Holdings, the Parent Borrower, any Borrowing Subsidiary, any Account Party, their subsidiaries or their affiliates) or (ii) circumstances that are unrelated to Holdings, the Parent Borrower, any Borrowing Subsidiary, any Account Party, their Subsidiaries or their Affiliates).

 

“Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of Holdings and its Subsidiaries in an aggregate principal amount exceeding $50,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of Holdings or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that Holdings or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

 

“Material Subsidiary” means, at any date of determination, any Subsidiary of Holdings then having Net Tangible Assets representing more than 3% of the total Net Tangible Assets of Holdings and its Subsidiaries.

 

“Maturity Date” means April 8, 2012.

 

“Maximum Rate” has the meaning assigned to such term in Section 9.13.

 

“Merger” has the meaning assigned to such term in the definition of the term “Permitted Holding Company Reorganization”.

 

“Merger Subsidiary” has the meaning assigned to such term in the definition of the term “Permitted Holding Company Reorganization”.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA maintained, sponsored or contributed to by Holdings, the Parent Borrower, Purchasing or any ERISA Affiliate.

 

“Net Tangible Assets” means the aggregate amount at which the assets of Holdings and its Subsidiaries are reflected, in accordance with GAAP as in effect on the date hereof, on the asset side of the consolidated balance sheet, as at the close of a monthly accounting period (selected by the Parent Borrower) ending within the 65 days next preceding the date of determination, of Holdings and its Subsidiaries (after deducting all valuation and qualifying reserves relating to such assets), except any of the following described items that may be included among such assets:

 

(a)  trademarks, patents, goodwill and similar intangibles;

 

(b)  investments in and advances to Subsidiaries; and

 

 

 

 

 

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(c)  capital lease property rights,

 

after deducting from such amount current liabilities (other than deferred Tax effects) as reflected, in accordance with GAAP as in effect on the date hereof, on such balance sheet.

 

“New Holdco” has the meaning assigned to such term in the definition of the term “Permitted Holding Company Reorganization”.

 

“Non-Material Subsidiary” means, at any date of determination, any Subsidiary of Holdings that is not a Material Subsidiary.

 

“Obligations” has the meaning assigned to such term in the Collateral Agreement.

 

“Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any indebtedness, liability or obligation under any so-called “synthetic lease” transaction entered into by such Person, or (c) any indebtedness, liability or obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheets of such Person (other than operating leases).

 

“Other Connection Taxes” means, with respect to the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of any Loan Party hereunder or under any other Loan Document, 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, or become a party to, performed its obligations or received payments under, received or perfected a security interest under, sold or assigned an interest in any Loan or Loan Document, engaged in any other transaction pursuant to, or enforced any Loan Documents).

 

“Other Taxes” means any and all present or future stamp, court or documentary Taxes or any excise, property, intangible, recording, filing or similar Taxes that arise from the execution, delivery, performance enforcement of, registration of, receipt or perfection of a security interest under, any payment made under, or otherwise with respect to, any Loan Document.

 

“Parent Borrower” means J. C. Penney Corporation, Inc., a Delaware corporation.

 

“Participant” has the meaning assigned to such term in Section 9.04.

 

“Participant Register” has the meaning assigned to such term in Section 9.04(c)(i).

 

“Participation Amount” has the meaning assigned to such term in Section 2.05(e).

 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)).

 

 

 

 

 

17

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

 

“Perfection Certificate” means a certificate in the form of Exhibit C to the Collateral Agreement or any other form approved by the Administrative Agent.

 

“Permitted Encumbrances” means:

 

(a)  Liens imposed by law for Taxes, assessments or governmental charges or levies that are not yet due or are being contested in compliance with Section 5.05;

 

(b)  carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 5.05;

 

(c)  pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;

 

(d)  deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

 

(e)  judgment liens in respect of judgments that do not constitute an Event of Default under clause (k) of Section 7.01;

 

(f)  easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of Holdings or any Subsidiary; and

 

(g)  the special property interest of a consignor in respect of goods subject to consignment;

 

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

 

“Permitted Fee Receiver” means any Fee Receiver that, with respect to any fees paid under Section 2.11(a) or Section 2.11(b), delivers to the Parent Borrower and the Administrative Agent, on or prior to the date on which such Fee Receiver becomes a party hereto (and from time to time thereafter upon the request of the Parent Borrower and the Administrative Agent, unless such Fee Receiver becomes legally unable to do so solely as a result of a Change in Law after becoming a party hereto), accurate and duly completed copies (in such number as requested by the recipient) of one or more of Internal Revenue Service Forms W-9, W-8ECI, W-8EXP, W-8BEN or W-8IMY (together with, if applicable, one of the aforementioned forms duly completed from each direct or indirect beneficial owner of such Fee Receiver) or any successor

 

 

 

 

 

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form thereto that entitles such Fee Receiver to a complete exemption from U.S. withholding Tax on such payments (provided that, in the case of the Internal Revenue Service Form W-8BEN, a Fee Receiver providing such form shall qualify as a Permitted Fee Receiver only if such form establishes such exemption on the basis of the “business profits” or “other income” articles of a tax treaty to which the United States is a party and provides a U.S. taxpayer identification number), in each case together with such supplementary documentation as may be prescribed by applicable law to permit the Parent Borrower or the Administrative Agent to determine whether such Fee Receiver is entitled to such complete exemption.

 

“Permitted Holding Company Reorganization” means a transaction pursuant to which (a) a new subsidiary (“New Holdco”) is organized as a direct or indirect wholly owned Subsidiary of Holdings, (b) New Holdco organizes a new subsidiary (the “Merger Subsidiary”), which subsidiary is a wholly owned Subsidiary of New Holdco and (c) the Merger Subsidiary merges with and into Holdings (the “Merger”), pursuant to which (i) each outstanding share of capital stock of any class in Holdings is converted into one share of capital stock of the same class of New Holdco so that each Person that beneficially owned, directly or indirectly, capital stock of Holdings immediately prior to the consummation of the Merger continues to beneficially own, directly or indirectly, the same percentage of capital stock of the same class in New Holdco following the consummation of the Merger, (ii) each share of capital stock of New Holdco owned by the Parent Borrower immediately prior to the consummation of the Merger is cancelled and ceases to exist immediately following the consummation of the Merger,  (iii) Holdings becomes a direct wholly owned subsidiary of New Holdco and (iv) no other Person receives any consideration; provided that no such transaction shall constitute a “Permitted Holding Company Reorganization” unless, at or prior to the consummation of the Merger, (A) New Holdco shall become a Guarantee Party and shall take all actions necessary to satisfy the Collateral and Guarantee Requirement as a Guarantee Party and (B) New Holdco, Holdings, the Parent Borrower and the Administrative Agent shall enter into an amendment to this Agreement, in form and substance reasonably satisfactory to the Administrative Agent, providing for (1) the addition of New Holdco as a party to this Agreement as a Loan Party subject to the same obligations and provisions as are applicable to Holdings hereunder, (2) the substitution of New Holdco for Holdings in the definition of the term “Change in Control” and in all contexts applicable to consolidated financial calculations and reporting requirements (including in the definition of the term “Leverage Ratio”) and (3) the addition of a new paragraph in Section 6.03 to the effect that New Holdco shall not engage in any business or activity other than the ownership of all the outstanding shares of capital stock of Holdings and activities incidental thereto and that New Holdco will not acquire any assets (other than shares of capital stock of Holdings, cash and Permitted Investments) or incur any liabilities (other than liabilities under the Loan Documents and other Indebtedness permitted by this Agreement, liabilities imposed by law, including Tax liabilities, and other liabilities incidental to its existence and permitted business and activities).

 

“Permitted Investments” means:

 

(a)  direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency or instrumentality thereof);

 

 

 

 

 

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(b)  investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, a credit rating of at least A1 from S&P, P1 from Moody’s or F1 from Fitch;

 

(c)  investments in certificates of deposit, banker’s acceptances and time deposits issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, (i) any domestic or offshore office of any commercial bank organized under the laws of the United States of America or any State thereof, (ii) any office located within the United States of America or in a foreign jurisdiction that has a tax treaty with the United States of America of a commercial bank organized under the laws of another country or (iii) any office located in London of any commercial bank organized under the laws of the United States of America, any Asian country or any European country, in each case which has a combined capital and surplus and undivided profits of not less than $500,000,000; provided, however, that investments with any bank that has a combined capital and surplus and undivided profits of less than $500,000,000 are permitted if the Parent Borrower maintains a banking relationship with such bank;

 

(d)  fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; and

 

(e)  money market funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940 and (ii) have portfolio assets of at least $3,000,000,000; provided, that investments in any money market fund with portfolio assets of less than $3,000,000,000 are permitted if such fund has received a rating of AAA from S&P or Aaa from Moody’s.

 

“Permitted Long-Term Indebtedness” means unsecured Indebtedness for borrowed money of Holdings or the Parent Borrower; provided that such Indebtedness shall mature later than, and shall not be subject to any scheduled payment of principal, mandatory sinking fund requirement or similar repayment obligation prior to, the Maturity Date.

 

“Person” means any individual, corporation, limited liability company, trust, joint venture, association, company, partnership, unincorporated organization, Governmental Authority or other entity.

 

“Plan” means any pension plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA that is maintained, sponsored or contributed to by Holdings or any ERISA Affiliate.

 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

 

“Purchasing” means J. C. Penney Purchasing Corporation, a New York corporation.

 

 

 

 

 

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“Realty Company” means each of JCP Realty Inc. and its Subsidiaries that is principally engaged in the business of managing and owning real estate and real estate-related interests.

 

“Register” has the meaning assigned to such term in clause (iv) of Section 9.04(b).

 

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

 

“Release Period” means a period (a) commencing upon the release and termination of the security interests in the Collateral pursuant to Section 6.15(d) of the Collateral Agreement and (b) ending when Holdings and the Parent Borrower are required to satisfy the Collateral and Guarantee Requirement as provided in Section 5.11(b).

 

“Relevant Date” has the meaning assigned to such term in Section 2.16.

 

“Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and unused Commitments representing more than 50% of the sum of the total Revolving Credit Exposures and unused Commitments at such time.

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in Holdings 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 Equity Interests in Holdings or any Subsidiary; provided that a dividend, distribution or payment payable solely in Equity Interests (other than Disqualified Equity Interests) in Holdings shall not constitute a Restricted Payment.

 

“Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline Exposure at such time.

 

“Revolving Loan” means a Loan made pursuant to Section 2.01.

 

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

 

“Specified Date” means the date that is 180 days after the Maturity Date.

 

“Stand-by Letter of Credit” means any Letter of Credit that is not a Trade Letter of Credit.

 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the

 

 

 

 

 

21

Administrative Agent is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve percentages shall include those imposed pursuant to such Regulation D.  Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

 

“Subsidiary” means any subsidiary of Holdings, including the Parent Borrower but excluding any Excluded Subsidiary.

 

“Subsidiary Borrower Election” means an agreement executed by the Parent Borrower and a Subsidiary, and delivered to and acknowledged by the Administrative Agent, pursuant to which the Parent Borrower designates such Subsidiary to be, and such Subsidiary agrees to be, a Borrower hereunder, in accordance with Section 2.20.  Each Subsidiary Borrower Election shall be in a form reasonably satisfactory to the Administrative Agent.

 

“Subsidiary Borrower Termination” means a notice executed by the Parent Borrower and delivered to the Administrative Agent terminating a Subsidiary’s status as a Borrower hereunder in accordance with Section 2.20.

 

“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of Holdings or the Subsidiaries shall be a Swap Agreement.

 

“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time.  The Swingline Exposure of any Lender at any time shall be its Applicable Percentage of the total Swingline Exposure at such time.

 

 

 

 

 

22

“Swingline Lender” means JPMorgan Chase Bank, N.A., and each other Lender that agrees to be a Swingline Lender hereunder as provided in Section 2.04, in each case in its capacity as a lender of Swingline Loans hereunder.

 

“Swingline Loan” means a Loan made pursuant to Section 2.04.

 

“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Trade Letter of Credit” means any Letter of Credit issued for the purpose of providing the primary payment mechanism in connection with the purchase of any materials, goods or services by an Account Party in the ordinary course of business of such Account Party.

 

“Transactions” means the execution, delivery and performance by each Loan Party of the Loan Documents to which it is or is to be a party, the borrowing of Loans and the issuance of Letters of Credit hereunder.

 

“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

 

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in 

Section 2.16(g).

 

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

SECTION 1.02. Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”).  Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

 

SECTION 1.03. Terms Generally.  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 (a) any definition of or reference to any agreement, instrument or other document herein 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), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not

 

 

 

 

 

23

to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

SECTION 1.04. Accounting Terms; GAAP.  Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if Holdings or the Parent Borrower notifies the Administrative Agent that Holdings or the Parent Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies Holdings or the Parent Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.  It is understood that all financial computations hereunder with respect to Holdings and the Subsidiaries (including computations of Consolidated EBITDA and Net Tangible Assets and compliance with Sections 6.09 and 6.10) shall be made excluding the accounts of all Excluded Subsidiaries.

 

ARTICLE II

 

The Credits

 

SECTION 2.01. Commitments.  Subject to the terms and conditions set forth herein, each Lender agrees to make Revolving Loans to the Borrowers from time to time during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (b) the sum of the total Revolving Credit Exposures exceeding the total Commitments.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.

 

SECTION 2.02. Loans and Borrowings.  (a)  Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.

 

(b) Subject to Section 2.13, each Revolving Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the applicable Borrower may request in accordance herewith.  Each Swingline Loan shall be an ABR Loan.  Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the

 

 

 

 

 

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obligation of the relevant Borrower to repay such Loan in accord­ance with the terms of this Agreement.

 

(c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $5,000,000 and not less than $10,000,000.  At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $5,000,000 and not less than $10,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e).  Each Swingline Loan shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000.  Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of 12 Eurodollar Revolving Borrowings outstanding.

 

(d) Notwithstanding any other provision of this Agreement, no Borrower shall be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.

 

SECTION 2.03. Requests for Revolving Borrowings.   To request a Revolving Borrowing, a Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the day of the proposed Borrowing; provided that any such notice given by the Parent Borrower of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be given not later than 10:00 a.m., New York City time, on the date of the proposed Borrowing.  Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery, telecopy or electronic transmission to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the relevant Borrower.  Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02:

 

	 	
(i)

	
the aggregate amount of the requested Borrowing;

 

	 	
(ii)

	
the date of such Borrowing, which shall be a Business Day;

 

	 	
(iii)

	
 whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

 

	 	
(iv)

	
 in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, 

which shall be a period contemplated by the definition of the term “Interest Period”; and

 

	 	
(v)

	
 the location and number of the relevant Borrower’s account to which funds are to be 

disbursed, which shall comply with the requirements of Section 2.06

 

 

 

 

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If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Eurodollar Revolving Borrowing, then the relevant Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

 

SECTION 2.04. Swingline Loans.  (a)  Subject to the terms and conditions set forth herein, the Swingline Lenders agree to make Swingline Loans to the Borrowers from time to time during the Availability Period, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $50,000,000 or (ii) the sum of the total Revolving Credit Exposures exceeding the total Commitments; provided that no Swingline Lender shall be required to make a Swingline Loan to refinance an outstanding Swingline Loan.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow Swingline Loans.

 

(b) To request a Swingline Loan, a Borrower shall notify the Administrative Agent and the applicable Swingline Lender of such request by telephone (confirmed by telecopy or electronic transmission), not later than 12:00 noon, New York City time, on the day of a proposed Swingline Loan.  Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan.  The applicable Swingline Lender shall make each Swingline Loan available to the relevant Borrower by means of a credit to the general deposit account of such Borrower with such Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e), by remittance to the applicable Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.

 

(c) A Swingline Lender may by written notice given to the Administrative Agent not later than 10:00 a.m., New York City time, on any Business Day require the Lenders to acquire participations on such Business Day in all or a portion of such Swingline Lender’s Swingline Loans outstanding.  Such notice shall specify the aggregate amount of Swingline Loans in which Lenders will participate.  Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the applicable Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the

 

 

 

 

 

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applicable Swingline Lender the amounts so received by it from the Lenders.  The Administrative Agent shall notify the relevant Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the applicable Swingline Lender.  Any amounts received by a Swingline Lender from a Borrower (or other party on behalf of such Borrower) in respect of a Swingline Loan of such Borrower after receipt by such Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph and to such Swingline Lender, as their interests may appear; provided that any such payment so remitted shall be repaid to such Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such payment is required to be refunded to such Borrower for any reason.  The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the relevant Borrower of any default in the payment thereof.

 

(d) The Parent Borrower may designate any Lender to be a Swingline Lender hereunder subject to the prior written consent of the Administrative Agent (which consent shall not be unreasonably withheld) and such Lender.  Any such designation shall not be effective until confirmed in a written agreement signed by the Parent Borrower, the Administrative Agent and the applicable Lender.

 

SECTION 2.05. Letters of Credit.  (a)  General.  Subject to the terms and conditions set forth herein, (i) any Account Party may request the issuance of Letters of Credit for its own account, in a form reasonably acceptable to the applicable Issuing Bank, at any time and from time to time during the Availability Period, and (ii) the Issuing Banks agree to issue Letters of Credit.  In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by an Account Party to, or entered into by an Account Party with, any Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

 

(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), an Account Party shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the applicable Issuing Bank) to the applicable Issuing Bank (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.  If requested by the applicable Issuing Bank, such Account Party also shall submit a letter of credit application on such Issuing Bank’s standard form in connection with any request for a Letter of Credit.  A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the applicable Account Party shall be deemed to represent and warrant that), after giving effect to such

 

 

 

 

 

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issuance, amendment, renewal or extension, (i) the LC Exposure shall not exceed $500,000,000 and (ii) the sum of the total Revolving Credit Exposures shall not exceed the total Commitments.

 

Each Issuing Bank shall provide to the LC Agent and the Administrative Agent not later than 3:00 p.m. (or promptly thereafter, if unable to do so by 3:00 p.m.), New York City time, on the first Business Day of each calendar week a report of such Issuing Bank setting forth (i) the aggregate amount of all Letters of Credit issued by such Issuing Bank that are outstanding as of 3:00 p.m. on the last Business Day of the preceding calendar week, (ii) the average daily undrawn amount of all Letters of Credit issued by such Issuing Bank for each calendar day during the period since the last calendar day covered by the preceding weekly report (or, in the case of the first weekly report, during the period from and including the Effective Date) and (iii) the aggregate amount of LC Disbursements made by such Issuing Bank and not reimbursed as of the time of such report.  In addition to providing such weekly reports, each Issuing Bank shall, from time to time upon request of the LC Agent or the Administrative Agent, provide the LC Agent and the Administrative Agent with information of the type referred to in the immediately preceding sentence on a more frequent basis.

 

The LC Agent shall provide to each Lender not later than 3:00 p.m. (or promptly thereafter, if unable to do so by 3:00 p.m.), New York City time, on the first Business Day of each calendar month a report setting forth the aggregate amount of all Letters of Credit that are outstanding as of the date of the most recent weekly reports delivered by the Issuing Banks to the Administrative Agent pursuant to clause (i) of the immediately preceding paragraph.

 

Neither the LC Agent nor the Administrative Agent nor any Issuing Bank shall have any duty or obligation at any time to monitor the LC Exposure relative to the total Commitments and neither the LC Agent nor the Administrative Agent nor any Issuing Bank shall have any liability in respect of the issuance, amendment, renewal or extension of a Letter of Credit to the extent that such issuance, amendment, renewal or extension results in the total Revolving Credit Exposures exceeding the total Commitments.  It shall be the responsibility of the Borrowers and the Account Parties to ensure that, after giving effect to the issuance, amendment, renewal or extension of each Letter of Credit, the sum of the total Revolving Credit Exposures does not exceed the total Commitments.

 

(c) Expiration Date.  Except for Extended Letters of Credit issued in accordance with Section 2.05(k), each Letter of Credit shall expire at or prior to the close of business on the date that is five Business Days prior to the Maturity Date.

 

(d) Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the applicable Issuing Bank or the Lenders, the Issuing Bank in respect of such Letter of Credit hereby grants to each Lender, and each Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the applicable Account Party on the date due as provided in paragraph (e) of this Section, or 

 

 

 

 

 

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of any reimbursement payment required to be refunded to an Account Party for any reason.  Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

 

(e) Reimbursement.  If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, (i) the applicable Account Party shall reimburse such LC Disbursement by paying to such Issuing Bank an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on the date that such LC Disbursement is made, if such Account Party shall have received notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by such Account Party prior to such time on such date, then not later than 12:00 noon, New York City time, on (A) the Business Day that such Account Party receives such notice, if such notice is received prior to 10:00 a.m., New York City time, on the day of receipt, or (B) the Business Day immediately following the day that such Account Party receives such notice, if such notice is not received prior to such time on the day of receipt; provided that, if such LC Disbursement is not less than $10,000,000, the Parent Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.04 that such payment be financed with an ABR Revolving Borrowing by the Parent Borrower or a Swingline Loan to the Parent Borrower in an equivalent amount and, to the extent so financed, such Account Party’s obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Borrowing or Swingline Loan; or (ii) such Issuing Bank may, if arrangements to do so have been agreed upon in writing by the Parent Borrower, a Borrowing Subsidiary or an Account Party and such Issuing Bank, obtain reimbursement of such LC Disbursement by debiting directly from an account of the Parent Borrower, such Borrowing Subsidiary or such Account Party maintained with such Issuing Bank (or one of its Affiliates) an amount equal to such LC Disbursement; provided that the foregoing shall not be construed to prevent the applicable Account Party from reimbursing LC Disbursements of an Issuing Bank in accordance with alternate procedures agreed upon with such Issuing Bank, so long as such reimbursements are made no later than required under clause (i) above.  If such Account Party fails to make such payment when due or the applicable Issuing Bank is unable to debit the designated account of the Parent Borrower, the relevant Borrowing Subsidiary or the relevant Account Party for the full amount of the LC Disbursement, in each case as provided in the preceding sentence, the applicable Issuing Bank shall notify the LC Agent (and upon receipt of such notice the LC Agent shall notify each Lender and the Administrative Agent) of the applicable LC Disbursement, the payment then due from such Account Party in respect thereof and (in the case of such notice from the LC Agent to each Lender) such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from such Account Party (the “Participation Amount”), in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the applicable Issuing Bank the amounts so received by it from the Lenders.  Promptly following receipt by the Administrative Agent of any payment from such Account Party pursuant to this paragraph, the Administrative Agent shall distribute such

 

 

 

 

 

29

payment to the applicable Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear.  Any payment made by a Lender pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve such Account Party of its obligation to reimburse such LC Disbursement.

 

(f) Obligations Absolute.  An Account Party’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by an Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, such Account Party’s obligations hereunder.  Neither the LC Agent, the Administrative Agent, the Lenders nor any Issuing Bank, nor any of their respective Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of any Issuing Bank; provided that the foregoing shall not be construed to excuse the applicable Issuing Bank from liability to the applicable Account Party to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by such Account Party to the extent permitted by applicable law) suffered by such Account Party that are caused by the applicable Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the applicable Issuing Bank (as finally determined by a court of competent jurisdiction) or such other standard of care as shall be separately agreed to in writing by such Issuing Bank and the applicable Account Party, such Issuing Bank shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

(g) Disbursement Procedures.  The applicable Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.  Such Issuing Bank shall promptly notify the LC Agent, the 

 

 

 

 

 

30

Administrative Agent and the applicable Account Party by telephone (confirmed by telecopy or electronic transmission), or by such other means of communication (if any) as have been agreed upon by such Account Party and such Issuing Bank, of such demand for payment and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve such Account Party of its obligation to reimburse such Issuing Bank and the Lenders with respect to any such LC Disbursement.

 

(h) Interim Interest.  If an Issuing Bank shall make any LC Disbursement, then, unless the applicable Account Party shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that such Account Party reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that, if such Account Party fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.12(c) shall apply.  Interest accrued pursuant to this paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse an Issuing Bank shall be for the account of such Lender to the extent of such payment.

 

(i) Designation and Replacement of Issuing Banks.  An Account Party may designate any Lender (or Affiliate of a Lender) to be an Issuing Bank hereunder, subject to such Lender’s (or Affiliate of such Lender’s) agreement, in its sole discretion, to become an Issuing Bank.  Such Account Party shall notify the Administrative Agent of any such designation.  An Issuing Bank may be replaced at any time by written agreement among the applicable Account Party, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank (which must be a Lender or an Affiliate of a Lender).  The Administrative Agent shall notify the Lenders of any such replacement of an Issuing Bank.  At the time any such replacement shall become effective, the applicable Account Party shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.11(b).  From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

 

(j) Cash Collateralization.  If (i) any Event of Default shall occur and be continuing, (ii) the Administrative Agent has declared the Loans outstanding hereunder due and payable pursuant to Section 7.01 or (iii) in the case of a Defaulting Lender, there shall exist any LC Exposure that cannot be reallocated among the non-Defaulting Lenders pursuant to Section 2.21(c) then, on the Business Day that an Account Party receives notice from the Administrative Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this paragraph, such Account Party shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders (or, in the case of clause 

 

 

 

 

 

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(iii), the non-Defaulting Lenders), an amount in cash equal to the LC Exposure (or, in the case of clause (iii), the LC Exposure of the Defaulting Lender that cannot be fully reallocated pursuant to 

Section 2.21(c)(i)) as of such date attributable to Letters of Credit issued for the account of such Account Party plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to Holdings, any Borrower or any Account Party described in clause (h) or (i) of Section 7.01.  Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of such Account Party under this Agreement.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at such Account Party’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse any Issuing Bank  that is not a Defaulting Lender for LC Disbursements in respect of Letters of Credit issued for the account of such Account Party for which such Issuing Bank has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of such Account Party for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy the other Obligations.

 

(k) Extended Letters of Credit.  An Account Party may request that an Issuing Bank allow, and an Issuing Bank may (in its sole discretion) agree to allow, one or more Letters of Credit issued by it to expire later than the date that is five Business Days prior to the Maturity Date.  Any such Letter of Credit is referred to herein as an “Extended Letter of Credit”.  The following provisions shall apply to any Extended Letter of Credit, notwithstanding any contrary provision set forth herein.

 

(i) The participations of each Lender in each Extended Letter of Credit shall terminate at the close of business on the date that is five Business Days prior to the Maturity Date, with the effect that Lenders shall not have any obligations to acquire participations in any LC Disbursement made thereafter or otherwise with respect to such Extended Letter of Credit, except with respect to demands for drawings submitted on or prior to such date.

 

(ii) On or prior to the date that is fifteen days prior to the Maturity Date (or on the date of any earlier termination of the Commitments), each Account Party shall deposit with each Issuing Bank an amount in cash equal to the LC Exposure as of such date attributable to the Extended Letters of Credit issued by such Issuing Bank for the account of such Account Party.  Each such deposit shall be held by the applicable Issuing Bank in an account maintained by it as collateral for the obligations of such Account Party in respect of such Extended Letters of Credit.  Each applicable Issuing Bank shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the relevant Issuing Bank and at such Account Party's risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account.  Moneys 

 

 

 

 

 

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in such account shall be applied by the relevant Issuing Bank to reimburse LC Disbursements in respect of such Extended Letters of Credit issued for the account of such Account Party for which such Issuing Bank has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of any reimbursement obligations of such Account Party for such Issuing Bank’s LC Exposure at such time.

 

(iii) After the close of business on the date that is five Business Days prior to the Maturity Date, the fees that would have accrued pursuant to clause (i) of Section 2.11(b) (if the participations of the Lenders in the Extended Letters of Credit had not terminated) shall continue to accrue on the LC Exposure in respect of each Extended Letter of Credit and shall be payable to each applicable Issuing Bank for its own account.

 

SECTION 2.06. Funding of Borrowings.  (a)  Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided in Section 2.04.  The Administrative Agent will make such Loans available to the applicable Borrower by promptly crediting the amounts so received, in like funds, to an account of such Borrower maintained with the Administrative Agent in New York City and designated by such Borrower in the applicable Borrowing Request; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be remitted by the Administrative Agent to the applicable Issuing Bank.

 

(b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing (or, in respect of the reimbursement of an LC Disbursement under Section 2.05(e), such Lender’s Participation Amount), the Administrative Agent may assume that such Lender has made such share (or such Lender’s Participation Amount, as applicable) available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the applicable Borrower (or the applicable Issuing Bank, as applicable) a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing (or such Lender’s Participation Amount, as applicable) available to the Administrative Agent, then the applicable Lender and the applicable Borrower (or the applicable Issuing Bank, as applicable) severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to such Borrower (or such Issuing Bank, as applicable) to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender or such Issuing Bank, 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 or (ii) in the case of such Borrower, the interest rate applicable to ABR Loans.  If (x) with respect to such Borrowing, such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing or (y) with respect to such reimbursement of such LC Disbursement, the applicable Account Party shall reimburse the applicable LC Disbursement before the applicable Lender or Issuing Bank reimburses the Administrative Agent as provided in this paragraph, then the Administrative Agent shall be entitled to receive or retain the amount due to it as provided above together with interest payable by such Account Party with respect to

 

 

 

 

 

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the period commencing on the date that the Administrative Agent funded its payment to the applicable Issuing Bank.

 

SECTION 2.07. Interest Elections.  (a)  Each Revolving Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the applicable Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods therefor, all as provided in this Section.  Such Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.  This Section shall not apply to Swingline Borrowings, which may not be converted or continued.

 

(b) To make an election pursuant to this Section, the relevant Borrower shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if such Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery, telecopy or electronic transmission to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by such Borrower.

 

(c) Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02:

 

(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

 

(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

 

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

 

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”.

 

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the relevant Borrower shall be deemed to have selected an Interest Period of one month’s duration.

 

 

 

 

 

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(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

(e) If the relevant Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Parent Borrower, then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

 

SECTION 2.08. Termination and Reduction of Commitments.  (a)  Unless previously terminated, the Commitments shall termi­nate on the Maturity Date.

 

(b) The Parent Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Parent Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.10, the sum of the Revolving Credit Exposures would exceed the total Commitments.

 

(c) The Parent Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Parent Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Parent Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Parent Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or reduction of the Commitments shall be permanent.  Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.

 

SECTION 2.09. Repayment of Loans; Evidence of Debt.  (a)  Each Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan owed by such Borrower to such Lender on the Maturity Date and (ii) to each Swingline Lender the then unpaid principal amount of each Swingline Loan owed to such Swingline Lender by such Borrower on the earlier of the Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of a calendar month and is at least two Business Days after such Swingline Loan is made; provided that on each date that a Revolving Borrowing is made, such Borrower shall repay all Swingline Loans of such Borrower then outstanding.

 

 

 

 

 

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(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of each Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

 

(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from each Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

 

(d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of each Borrower to repay its Loans in accordance with the terms of this Agreement.

 

(e) Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the applicable Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).

 

SECTION 2.10. Prepayment of Loans.  (a)  Each Borrower shall have the right at any time and from time to time to prepay any of its Borrowings in whole or in part, subject to prior notice in accordance with paragraph (c) of this Section.

 

(b) In the event and on each occasion that the sum of the Revolving Credit Exposures exceeds the maximum amount of Revolving Credit Exposures permitted by Section 6.11, the Borrowers shall prepay Borrowings (or, if no such Borrowings are outstanding, each Account Party shall deposit cash collateral in an account with the Administrative Agent pursuant to Section 2.05(j)) in an aggregate amount equal to such excess.

 

(c) The applicable Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the applicable Swingline Lender) by telephone (confirmed by telecopy or electronic transmission) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Revolving Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Revolving Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 12:00 noon, New York City time, on the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with

 

 

 

 

 

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a conditional notice of termination of the Commitments as contemplated by Section 2.08, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.08.  Promptly following receipt of any such notice relating to a Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a Revolving Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by accrued interest to the extent required by Section 2.12.

 

SECTION 2.11. Fees.  (a)  The Parent Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the daily unused amount of the Commitment of such Lender during the period from and including Effective Date to but excluding the date on which such Commitment terminates.  Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof.  All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  For purposes of computing commitment fees, the Commitment of a Lender shall be deemed to be used to the extent of the outstanding Revolving Loans and LC Exposures of such Lender (and the Swingline Exposure of such Lender shall be disregarded for such purposes).

 

(b) The Parent Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in (A) Stand-by Letters of Credit, which shall accrue at the Applicable Rate, and (B) Trade Letters of Credit, which shall accrue at a rate equal to 50% of the Applicable Rate used to determine the participation fees applicable to Stand-by Letters of Credit on the determination date, in each case on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to each Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum, on the average daily amount of the LC Exposure in respect of Stand-by Letters of Credit issued by such Issuing Bank (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure, as well as such Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.  Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable in arrears on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand.  Any other fees payable to any Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand.  All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall

 

 

 

 

 

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be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(c) The Parent Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Parent Borrower and the Administrative Agent.

 

(d) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the applicable Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees and participation fees, to the Lenders.  Fees paid shall not be refundable under any circumstances.

 

SECTION 2.12. Interest.  (a)  The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.

 

(b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

 

(c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by any Borrower or any Account Party hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section.

 

(d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Revolving Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

 

(e) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

 

SECTION 2.13. Alternate Rate of Interest.  If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

 

 

 

 

 

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(a)  the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

 

(b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period;

 

then the Administrative Agent shall give notice thereof to the Parent Borrower and the Lenders by telephone, telecopy or electronic transmission as promptly as practicable thereafter and, until the Administrative Agent notifies the Parent Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as an ABR Borrowing.

 

SECTION 2.14. Increased Costs.  (a)  Subject to Section 2.18, if any Change in Law shall:

 

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or any Issuing Bank;

 

(ii) subject any Lender or the Issuing Bank to any (or any increase in any) Other Connection Taxes with respect to this Agreement or any other Loan Document, any Letter of Credit, or any participation in a Letter of Credit or any Loan made or Letter of Credit Issued by it, except any such Taxes imposed on or measured by its net income or profits (however denominated) or franchise Taxes imposed in lieu of net income or profits Taxes; or

 

(iii) impose on any Lender or any Issuing Bank or the London interbank market any other condition affecting this Agreement or Eurodollar 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 of making or maintaining any Eurodollar Loan, or in the case of clause (ii), any Loan, (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or such Issuing Bank hereunder (whether of principal, interest or otherwise), then the relevant Borrower will pay to such Lender and the relevant Account Party will pay to such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered in accordance with Section 2.18.

 

(b) Subject to Section 2.18, if any Lender or any Issuing Bank determines that any Change in Law regarding capital requirements has or would have the effect of reducing the

 

 

 

 

 

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rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy), then from time to time the relevant Borrower will pay to such Lender and the relevant Account Party will pay to such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered in accordance with Section 2.18.

 

(c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Parent Borrower and shall be conclusive absent manifest error.  The relevant Borrower shall pay such Lender and the relevant Account Party shall pay such Issuing Bank, as the case may be, the amount shown as due on any such certificate (such amount hereinafter referred to as the “Additional Costs”) within 30 days after receipt thereof.

 

(d) Subject to Section 2.18, failure or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation.

 

SECTION 2.15. Break Funding Payments.  In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.10(c) and is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Parent Borrower pursuant to Section 2.18, then, in any such event, the relevant Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Parent Borrower and shall be conclusive absent manifest error.  The relevant Borrower shall pay such Lender the amount shown as due on any such certificate within 30 days after receipt thereof.

 

 

 

 

 

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SECTION 2.16. Taxes.  (a)  Each payment on account of any obligation of a Borrower or Account Party hereunder to any Person, including the Administrative Agent, any Lender or Issuing Bank or its beneficial owner, to which any such obligation is owed (each of the foregoing being referred to as a “Recipient”) shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if any applicable law (as determined in the good faith discretion of an applicable Withholding Agent (as defined below)) requires the deduction or withholding of any Indemnified Tax or Other Tax from any such payment (including, for the avoidance of doubt, any such deduction or withholding required to be made by the applicable Borrower or Account Party or the Administrative Agent, or in the case of any Lender that is treated as a partnership for U.S. federal income tax purposes, by such Lender for the account of any of its direct or indirect beneficial owners), the applicable Borrower or Account Party, the Administrative Agent, the Lender or the applicable direct or indirect beneficial owner of a Lender (any such person, a “Withholding Agent”) shall make such deductions and timely pay the full amount deducted 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 Borrower or Account Party shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.16) the Recipient receives an amount equal to the sum it would have received had no such deductions been made.

 

(b) In addition, the Borrowers and the Account Parties shall pay, or at the option of the Administrative Agent timely reimburse it for, the payment of any Other Taxes to the relevant Governmental Authorities in accordance with applicable law other than any Other Taxes imposed upon any assignment or participation of a Lender’s rights, interests and obligations hereunder or under any other Loan Document; provided that the amount such Borrower or such Account Party (as the case may be) shall be required to pay to a particular Lender in respect of Other Taxes shall not exceed 1% of the aggregate amount of the Commitment of such Lender on which such Other Taxes are imposed; provided further that if a Lender is actually aware of the application of any Other Tax to any such payment, execution, delivery or registration, such Lender shall promptly notify the Parent Borrower of such Other Tax and the relevant Borrower or the relevant Account Party (as the case may be) shall thereafter have the benefit of the provisions of Section 2.18(b).

 

(c) Each Borrower and each Account Party shall indemnify each Recipient, within 30 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.16) payable by such Recipient on or with respect to any payment by or on account of any obligation of such Borrower or Account Party hereunder and expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other 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 such Borrower or Account Party by the Recipient, or by the Administrative Agent on behalf of the Recipient, shall be conclusive absent manifest error.

 

(d) Each Lender shall indemnify the Administrative Agent within 10 days after demand therefor for the full amount of any Excluded Taxes attributable to such Lender that are payable or paid by the Administrative Agent, and reasonable expenses arising therefrom or with

 

 

 

 

 

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respect thereto, whether or not such Excluded 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.

 

(e) Within 30 days after the date of any payment of Indemnified Taxes or Other Taxes by the relevant Borrower or the relevant Account Party (as the case may be) in respect of any payment to any Recipient, such Borrower or such Account Party (as the case may be) will furnish to the Administrative Agent, at its address referred to in Section 9.01, the original or a certified copy of a receipt evidencing payment thereof or, if such a receipt is not available, a certificate of the treasurer or any assistant treasurer of such Borrower or such Account Party (as the case may be) setting forth the amount of such payment and the date on which such payment was made.

 

(f) Each Fee Receiver shall deliver the documentation necessary for it to be a Permitted Fee Receiver and agrees to update Internal Revenue Service Form W-9 (or its successor form) or the applicable Internal Revenue Service Form W-8 (or its successor form) upon any change in such Fee Receiver’s circumstances or if such form expires or becomes inaccurate or obsolete, and to promptly notify the Parent Borrower and the Administrative Agent if such Fee Receiver becomes legally ineligible to provide such form.

 

(g) Any Foreign Lender that is entitled to an exemption from or reduction of any applicable withholding Tax with respect to payments under this Agreement shall deliver to the Parent Borrower (with a copy to the Administrative Agent), at the time or times reasonably requested by the Parent Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Parent Borrower as will permit such payments to be made without withholding or at a reduced rate.  Each Foreign Lender shall promptly notify the Parent Borrower at any time it determines that it is no longer in a position to provide any such previously delivered documentation to the Parent Borrower.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth below in this paragraph (g)) shall not be required if in the Foreign Lender’s judgment such completion, execution or submission would subject such Foreign Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Foreign Lender.

 

Without limiting the generality of the foregoing, any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Parent 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 request of the Parent Borrower or the Administrative Agent), whichever of the following is applicable:

 

(i) duly completed copies of Internal Revenue Service Form W-8BEN, claiming eligibility for benefits of an income tax treaty to which the United States of America is a party,

 

 

 

 

 

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(ii) duly completed copies of Internal Revenue Service 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 Code, (x) a certificate substantially in the form of Exhibit D to the effect that such Foreign Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of any Borrower within the meaning of Section 871(h)(3)(B) of the Code, (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code and (D) the interest payments in question are not effectively connected with a U.S. trade or business conducted by such Lender (a “U.S. Tax Compliance Certificate”) and (y) duly completed copies of Internal Revenue Service Form W-8 BEN,

 

(iv) to the extent a Foreign Lender is not the beneficial owner of payments made under any Loan Document (for example, where the Foreign Lender is a partnership or participating Lender granting a typical participation), an Internal Revenue Service Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN, U.S. Tax Compliance Certificate, Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that, if the Foreign Lender is a partnership (and not a participating Lender) and one or more beneficial owners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate on behalf of such beneficial owners, or

 

(v) 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 Parent Borrower to determine the withholding or deduction required to be made.

 

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 Parent Borrower and the Administrative Agent in writing of its legal inability to do so.

 

(h) If any Recipient shall become aware that it is entitled to receive a refund in respect of any Indemnified Taxes or Other Taxes as to which it has been indemnified pursuant to this Section 2.16, such Recipient shall promptly notify the Parent Borrower of the availability of such refund and shall, within 30 days after receipt of a request by the Parent Borrower, apply for such refund at the Parent Borrower’s expense.  If any Recipient receives a refund in respect of any Taxes for which such Recipient has received payment from a Borrower or an Account Party hereunder, it shall within 30 days after the receipt thereof repay the lesser of such refund and the amount paid by such Borrower or such Account Party (as the case may be) with respect to such Taxes to the applicable Borrower or the applicable Account Party, as applicable, in each case net of all reasonable out-of-pocket expenses of such Recipient and with interest received by such Recipient from the relevant taxing authority attributable to such refund; provided that such Borrower or such Account Party (as the case may be), upon the request of such Recipient, as applicable, agree to return any such refund (plus interest, penalties and other charges) to such Recipient, as applicable, in the event  such Issuing Bank, Lender or the Administrative Agent is required to pay such refund to any Governmental Authority. 

Notwithstanding anything to the 

 

 

 

 

 

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contrary in this paragraph (h), in no event will any Issuing Bank or Lender be required to pay any amount to any Loan Party the payment of which would place the Issuing Bank or such Lender in a less favorable net after-Tax position than the Issuing Bank or such Lender would have been if the indemnification payments or additional amounts giving rise to such refund had never been paid.  This Section shall not be construed to require any Recipient to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Loan Parties or any other Person.

 

SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.  (a)  Each Borrower and each Account Party shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.14, 2.15 or 2.16, or otherwise) prior to the time expressly required hereunder for such payment (or, if no such time is expressly required, prior to 12:00 noon, New York City time, on the date when due), in immediately available funds, without set-off or counterclaim.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be made directly to an Issuing Bank or a Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.14, 2.15, 2.16 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  If any payment under any Loan Document shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments under each Loan Document shall be made in dollars.

 

(b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

 

(c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Revolving Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary 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 Revolving Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any such 

 

 

 

 

 

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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 paragraph shall not be construed to apply to any payment made by any Borrower or any Account Party pursuant to and in accordance with the express terms of this Agreement or 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 LC Disbursements to any assignee or participant, other than to Holdings or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply).  Each of the Borrowers and each of the Account 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 Borrower or such Account Party (as the case may be) rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Borrower or such Account Party (as the case may be) in the amount of such participation.

 

(d) Unless the Administrative Agent shall have received notice from a Borrower or an Account Party prior to the date on which any payment is due to the Administrative Agent from such Borrower or such Account Party (as the case may be) for the account of the Lenders or an Issuing Bank hereunder that such Borrower or such Account Party (as the case may be) will not make such payment, the Administrative Agent may assume that such Borrower or such Account Party (as the case may be) has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the applicable Issuing Bank, as the case may be, the amount due.  In such event, if the relevant Borrower or the relevant Account Party (as the case may be) has not in fact made such payment, then each of the Lenders or the 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 such Issuing Bank 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 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.

 

(e) If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b) or 2.17(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

 

SECTION 2.18. Mitigation Obligations; Replacement of Lenders.  (a)  If, with respect to any Lender or the Administrative Agent, an event or circumstance occurs that would entitle such Lender or the Administrative Agent to exercise any of the rights or benefits afforded by Section 2.14 or 2.16(a), such Lender or the Administrative Agent, promptly upon becoming aware of the same, shall take all steps as may be reasonably available (including designating a different Applicable Lending Office for funding or booking its Loans hereunder or participating in Letters of Credit or assigning its rights and obligations hereunder to another of its offices, or furnishing the proper certificates under any applicable Tax laws, Tax treaties, conventions and governmental regulations to the extent that such certificates are legally available to such Lender or to the Administrative Agent) to eliminate or mitigate the effects of any event resulting in the 

 

 

 

 

 

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ability of such Lender or the Administrative Agent to exercise rights under any of such Sections; provided that neither any Lender nor the Administrative Agent shall be under any obligation to take any step that, in its reasonable judgment, would (i) result in its incurring Additional Costs or Taxes in performing its obligations hereunder unless the Borrowers and the Account Parties have expressly agreed to reimburse it therefor or (ii) be materially disadvantageous to such Lender or to the Administrative Agent.  Within 60 days after the occurrence of any event giving rise to any rights or benefits provided by Sections 2.14 and 2.16(a) in favor of any Lender or the Administrative Agent, such Lender or the Administrative Agent (i) will notify the Parent Borrower of such event or circumstance and (ii) provide the Parent Borrower with a certificate setting forth in reasonable detail (x) the event or circumstance giving rise to any benefit under Sections 2.14 and 2.16(a), (y) the effective date of, and the time period during which, compensation for any Additional Costs or Taxes are being claimed and (z) the determination of amount or amounts claimed thereby and detailed calculations with respect thereto; provided that, if such Lender or the Administrative Agent does not give the Parent Borrower such notice and certificate within the 60-day period set forth in this sentence, the relevant Borrower or the relevant Account Party (as the case may be) shall be required to indemnify such Lender or the Administrative Agent only for such Additional Costs and Taxes as are attributable to the period from and after the first date as of which such notice and certificate have been received by the Parent Borrower.  Such Lender or the Administrative Agent shall notify the Parent Borrower of any change in circumstances with respect to the event specified in the above-described notice and certificate as promptly as practicable after such Lender or the Administrative Agent obtains knowledge thereof.  Such certificate shall be conclusive absent manifest error.  Notwithstanding the foregoing, neither any Lender nor the Administrative Agent shall deliver the notice and certificate described in this paragraph (a) to the Parent Borrower in respect of any Additional Costs or Taxes unless it is then the general policy of such Lender or the Administrative Agent to pursue similar rights and remedies in similar circumstances under comparable provisions of other credit agreements.

 

(b) With respect to Sections 2.14 and 2.16, the Parent Borrower shall have the right, should any Lender request any compensation or indemnity thereunder, or if any Lender becomes a Defaulting Lender, to (i) unless an Event of Default shall have occurred and be continuing, (A) promptly terminate such Lender’s Commitment by irrevocable written notice of such termination to such Lender and the Administrative Agent without the necessity of complying with Sections 2.08(b) and (c) hereof, (B) reduce the total Commitments by the amount of such Lender’s Commitment and (C) pay or prepay in immediately available funds all Loans owing to such Lender, accrued and unpaid interest thereon, accrued fees and all other amounts payable to it hereunder, or (ii) require such Lender to assign all its interests, rights and obligations under this Agreement, without recourse to or representation or warranty by such Lender, to an assignee in accordance with Section 9.04; provided that (x) such assignment shall not conflict with any statute, law, rule, regulation, order or decree of any Governmental Authority and (y) the assigning Lender shall have received from the relevant Borrower and the relevant Account Party and/or such assignee full payment in immediately available funds of the principal of and interest accrued on the Loans to the date of such assignment made by it hereunder and all other amounts owed to it hereunder that are subject to such assignment, provided that amounts payable under this clause (y) to any assigning Lender that is a Defaulting Lender shall be applied in accordance with Section 2.21(e).

 

 

 

 

 

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(c) With respect to Section 2.14 or 2.16, (i) other than with respect to Section 2.16(b), neither any Lender nor the Administrative Agent shall be entitled to exercise any right or benefit afforded thereby and neither the Borrowers nor the Account Parties shall be obligated to reimburse any Lender or the Administrative Agent pursuant to such Sections unless (x) such Lender or the Administrative Agent has delivered to the Parent Borrower in accordance with Section 9.01 the notice and the certificate described in Section 2.18(a) hereof and (y) the Parent Borrower has had a 30-Business Day period following the receipt of such notice and certificate (if the Parent Borrower in good faith disagrees with the assertion that any payment under such Sections is due or with the amount shown as due on such certificate and so notifies the Lender or the Administrative Agent of such disagreement within 10 Business Days following receipt of the notice and certificate) to negotiate with the requesting Lender or the Administrative Agent, which negotiations shall be conducted by the respective parties in good faith, and to agree upon another amount that will adequately compensate such Lender or the Administrative Agent, it being expressly understood that if the Parent Borrower does not provide the required notice of its disagreement as provided above, the relevant Borrower or the relevant Account Party (as the case may be) shall pay the amount shown as due on the certificate on the tenth Business Day following receipt thereof and further if the Parent Borrower does provide such required notice, and negotiations are entered into but do not result in agreement by the Parent Borrower and such Lender or the Administrative Agent within the 30-Business Day period, then the relevant Borrower or the relevant Account Party (as the case may be) shall pay the amount shown as due on the certificate on the last day of such period, but in either event not earlier than the date as of which the relevant Additional Costs or Taxes are incurred, (ii) other than with respect to Other Taxes, unless the appropriate notice and certificate are delivered to the Parent Borrower within the 60-day period described in Section 2.18(a), the relevant Borrower or the relevant Account Party (as the case may be) shall be liable only for Additional Costs, Taxes or amounts required to be paid which are attributable to the period from and after the date such notice and certificate have been received by such Borrower or such Account Party, as applicable, (iii) neither the Borrowers nor the Account Parties shall be liable for any amounts incurred as a result of any change in an Applicable Lending Office of any Issuing Bank or Lender to the extent that such Issuing Bank or Lender shall have had knowledge at the time of such change in Applicable Lending Office that reimbursement or recoupment under Section 2.14 would arise as a result of such change, (iv) each Lender or the Administrative Agent shall in good faith allocate all Additional Costs, Taxes and payments required to be made fairly among all its commitments (whether or not it seeks compensation from all affected Borrowers or Account Parties), (v) neither any Lender nor the Administrative Agent shall be entitled to exercise any right or benefit afforded hereby or receive any payment otherwise due under Sections 2.14 and 2.16 (including, without limitation, any repayment by any Borrower or any Account Party (as the case may be) of any refund of Taxes pursuant to Section 2.16(h)) which arises from any gross negligence, fraud or willful misconduct of any Lender or the Administrative Agent, or the failure of such Lender or the Administrative Agent to comply with the terms of this Agreement, (vi) if any Lender or the Administrative Agent shall have recouped any amount or received any offsetting Tax benefit (other than a refund of Taxes as described in Section 2.16(h)) or reserve or capital benefits theretofore paid to it by any Borrower or any Account Party (as the case may be), such Lender or the Administrative Agent shall promptly pay to such Borrower or such Account Party (as the case may be) an amount equal to the amount of the recoupment received by such Lender or the Administrative Agent reduced by any reasonable out-of-pocket expenses of such 

 

 

 

 

 

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Lender or the Administrative Agent attributable to such recoupment, as determined in good faith by such Lender or the Administrative Agent, and (vii) the liability of the Borrowers and the Account Parties to any Lender or the Administrative Agent with respect to any Indemnified Taxes shall be reduced to the extent that such Lender or the Administrative Agent receives an offsetting Tax benefit (or could have received such a benefit by taking reasonable measures to receive it); provided that there shall not be any reductions pursuant to this clause (vii) with respect to any Tax benefit (x) the existence of which such Lender or Administrative Agent is unaware, (y) the claiming of which would result in any cost or Tax to such Lender or the Administrative Agent (unless the relevant Borrower or the relevant Account Party (as the case may be) shall have agreed to pay its reasonably allocable portion of such cost or Tax) and (z) unless the relevant Borrower or the relevant Account Party (as the case may be) shall agree to indemnify the Lender or the Administrative Agent to the extent any Tax benefit taken into account under this clause (vii) is thereafter lost or becomes unavailable.

 

(d) In addition to their obligations under Section 2.14 hereof, each of the Lenders and the Administrative Agent hereby agrees to execute and deliver, and to make any required filings of, all certificates, agreements, documents, reports, statements and other instruments as are reasonably necessary to effectuate the purposes of this Section 2.18 and Sections 2.14 and 2.16.  The Parent Borrower agrees to pay all filing fees incurred by any Lender or the Administrative Agent in performing its obligations under this Section 2.18.

 

SECTION 2.19. Reserved.

 

SECTION 2.20. Borrowing Subsidiaries.  The Parent Borrower may, at any time and from time to time so long as no Default has occurred and is continuing, designate any Material Subsidiary (other than any Foreign Subsidiary) to be a Borrowing Subsidiary hereunder by delivering to the Administrative Agent a Subsidiary Borrowing Election with respect to such Material Subsidiary.  The eligibility of any Borrowing Subsidiary to borrow hereunder shall terminate when the Administrative Agent receives a Subsidiary Borrower Termination with respect to such Material Subsidiary.  Each Subsidiary Borrower Election delivered to the Administration Agent shall be duly executed on behalf of the relevant Material Subsidiary and the Parent Borrower, and each Subsidiary Borrower Termination delivered to the Administrative Agent shall be duly executed on behalf of the Parent Borrower.  The delivery of a Subsidiary Borrower Termination shall not affect any obligation of the relevant Material Subsidiary incurred in its capacity as a Borrower, and such Material Subsidiary shall continue to constitute a Borrowing Subsidiary for all purposes hereof (other than the right to borrow Loans) until all its obligations hereunder as a Borrower have been discharged and paid in full.  The Administrative Agent shall promptly give notice to the Lenders and the Issuing Banks of its receipt of any Subsidiary Borrower Election or Subsidiary Borrower Termination.

 

SECTION 2.21. Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.11(a);

 

 

 

 

 

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(b) the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 9.02), provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender differently than other affected Lenders, or any waiver, amendment or modification that has the effect of increasing the Commitment of such Defaulting Lender, shall require the consent of such Defaulting Lender;

 

(c) if any Swingline Exposure or LC Exposure exists at the time a Lender becomes a Defaulting Lender then:

 

(i) all or any part of such Swingline Exposure and LC Exposure shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent (x) the sum of all non-Defaulting Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the total of all non-Defaulting Lenders’ Commitments (it being understood that in no event shall any non-Defaulting Lender’s Revolving Credit Exposure exceed such Lender’s Commitment as a result of such reallocation) and (y) the conditions set forth in Section 4.02 are satisfied at such time; and

 

(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrowers or the Account Parties shall within one Business Day following notice by the Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash collateralize such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.05(j) for so long as such LC Exposure is outstanding;

 

(iii) if the Borrowers or the Account Parties cash collateralize any portion of such Defaulting Lender’s LC Exposure pursuant to this paragraph (c), the Borrowers shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.11(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

 

(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to this paragraph (c), then the fees payable to the Lenders pursuant to Section 2.11(a) and Section 2.11(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; or

 

(v) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to this paragraph (c), then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all facility fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lender’s Commitment that was utilized by such LC Exposure) and Letter of Credit fees payable under Section 2.11(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank until such LC Exposure is cash collateralized and/or reallocated;

 

 

 

 

 

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(d) so long as any Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrowers or the Account Parties in accordance with Section 2.21(c), and participating interests in any such newly issued or increased Letter of Credit or newly made Swingline Loan shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.21(c)(i) (and Defaulting Lenders shall not participate therein); and

 

(e) any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 2.17(c), but excluding Section 2.18(b)) shall, in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated account and, subject to any applicable requirements of law, be applied at such time or times as may be determined by the Administrative Agent (i) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, pro rata, to the payment of any amounts owing by such Defaulting Lender to the Issuing Bank or Swingline Lender hereunder, (iii) third, to the funding of any Loan or the funding or cash collateralization of any participating interest in any Swingline Loan or Letter of Credit in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent, (iv) fourth, if so determined by the Administrative Agent and the Borrowers or the Account Parties, held in such account as cash collateral for future funding obligations of the Defaulting Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to the Borrowers, the Account Parties or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by the Borrowers, the Account Parties or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if such payment is (x) a prepayment of the principal amount of any Loans or reimbursement obligations in respect of LC Disbursements which a Defaulting Lender has funded its participation obligations and (y) made at a time when the conditions set forth in Section 4.02 are satisfied, such payment shall be applied solely to prepay the Loans of, and reimbursement obligations owed to, all non-Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans, or reimbursement obligations owed to, any Defaulting Lender.

 

           In the event that the Administrative Agent, the Borrowers, the Account Parties, the Issuing Bank and the Swingline Lender each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.

 

 

 

 

 

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ARTICLE III

 

Representations and Warranties

 

Each of Holdings, the Parent Borrower and Purchasing represents and warrants to the Lenders that:

 

SECTION 3.01. Organization; Powers.  Each of the Loan Parties is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except, in each case, where the failure to do so, individually or in the aggregate, would not result in a Material Adverse Effect.

 

SECTION 3.02. Authorization; Enforceability.  The Transactions to be entered into by each Loan Party are within such Loan Party’s corporate powers and have been duly authorized by all necessary corporate and, if required, stockholder action.  This Agreement has been duly executed and delivered by each of Holdings, the Parent Borrower and Purchasing and constitutes, and each other Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan Party, will constitute, a legal, valid and binding obligation of Holdings, the Parent Borrower, Purchasing or such Loan Party (as the case may be), enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

SECTION 3.03. Governmental Approvals; No Conflicts.  The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect or as to which the failure to be made or obtained and to be in full force and effect would not result in a Material Adverse Effect, (ii) filings necessary to perfect Liens created under the Collateral Agreement and (iii) filings of periodic reports with the Securities and Exchange Commission, (b) will not violate any applicable law or material regulation or the charter, by-laws or other organizational documents of Holdings or any Subsidiary or any material order of any Governmental Authority, (c) will not violate or result in a default under any material provision of any indenture, agreement or other instrument binding upon Holdings or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by Holdings or any Subsidiary, and (d) will not result in the creation or imposition of any Lien on any asset of Holdings or any of its Subsidiaries, except Liens created under the Collateral Agreement.

 

SECTION 3.04. Financial Condition; No Material Adverse Change.  (a)  Holdings has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows as of and for the fiscal year ended January 31, 2009, reported on by KPMG LLP, independent public accountants.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of Holdings and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP.

 

 

 

 

 

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(b) Since January 31, 2009, there has been no material adverse change in the business, assets, operations or condition of Holdings and its Subsidiaries, taken as a whole.

 

SECTION 3.05. Properties.  (a)  Each of Holdings and its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to the business of Holdings and its Subsidiaries (taken as a whole), except for minor defects in title and leases being contested, in each case, that do not materially interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes.

 

(b) Each of Holdings and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by Holdings and its Subsidiaries does not infringe upon the rights of any other Person, except for any defects in ownership or licenses and any such infringements that, individually or in the aggregate, would not result in a Material Adverse Effect.

 

SECTION 3.06. Litigation and Environmental Matters.  (a)  There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of Holdings, the Parent Borrower or Purchasing, threatened against or affecting Holdings or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, would, individually or in the aggregate, result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve any of the Loan Documents or the Transactions.

 

(b) Except for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, would not result in a Material Adverse Effect, neither Holdings nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.

 

(c) Since the date of this Agreement, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.

 

SECTION 3.07. Compliance with Laws and Agreements.  Each of Holdings and its Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, material agreements and other material instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, would not result in a Material Adverse Effect.  No Default has occurred and is continuing.

 

SECTION 3.08. Investment Company Status.  No Loan Party is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.

 

SECTION 3.09. Taxes.  Each of Holdings and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes shown to be due and payable on such returns, except (a) Taxes that are being 

 

 

 

 

 

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contested in good faith by appropriate proceedings and for which Holdings or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so would not result in a Material Adverse Effect.

 

SECTION 3.10. ERISA.  (a)  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, would result in a Material Adverse Effect.

 

(b) The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan by a material amount, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of all such underfunded Plans by a material amount.

 

SECTION 3.11. Disclosure.  Neither the Information Memorandum nor any of the other reports, financial statements, certificates or other information furnished by or on behalf of any Loan Party to the Administrative Agent, any Issuing Bank or any Lender in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder (as modified or supplemented by other information so furnished and taken as a whole with such other information) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, Holdings, the Parent Borrower and Purchasing represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

 

SECTION 3.12. Material Subsidiaries.  Schedule 3.12 sets forth the name and jurisdiction of organization of each Subsidiary of Holdings that is a Material Subsidiary as of the Effective Date.

 

ARTICLE IV

 

Conditions

 

SECTION 4.01. Effective Date.  The obligations of the Lenders to make Loans and of each Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

 

(a) The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy or electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

 

 

 

 

 

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(b) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent, the Issuing Banks and the Lenders and dated the Effective Date) of each of Sullivan & Cromwell LLP, special New York counsel for the Loan Parties, and Janet L. Dhillon, General Counsel of Holdings, substantially in the form of Exhibits B-1 and B-2, and covering such other matters relating to the Loan Parties, the Loan Documents or the Transactions as the Required Lenders shall reasonably request.  Each of Holdings, the Parent Borrower and Purchasing hereby requests such counsel to deliver such opinions.

 

(c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of each Loan Party, the authorization of the Transactions and any other legal matters relating to the Loan Parties, the Loan Documents or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel.

 

(d) The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or a Financial Officer of the Parent Borrower, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02.

 

(e) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced at least two Business Days prior to the Effective Date, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by any Loan Party hereunder.

 

(f) The Collateral and Guarantee Requirement shall have been satisfied and the Administrative Agent shall have received a completed Perfection Certificate dated the Effective Date and signed by an executive officer or Financial Officer of the Parent Borrower, together with all attachments contemplated thereby, and the Administrative Agent shall have received the results of a search of the Uniform Commercial Code (or equivalent) filings made with respect to the Loan Parties in the jurisdictions contemplated by the Perfection Certificate and copies of the financing statements (or similar documents) disclosed by such search and evidence reasonably satisfactory to the Administrative Agent that the Liens indicated by such financing statements (or similar documents) are permitted by Section 6.02 or have been released.

 

(g) The Administrative Agent shall have received evidence that the insurance required by the Collateral Agreement is in effect.

 

(h) Prior to or concurrently with the effectiveness of the Commitments, the commitments under the Existing Credit Agreement shall be terminated and all loans and other amounts accrued or owing thereunder shall be paid.

 

(i) The Administrative Agent shall have received an initial Asset Coverage Certificate calculating the Asset Coverage Ratio as of the last day of the most recent fiscal month ended at least 10 days prior to the Effective Date, giving pro forma effect to any Loans being made or Letters of Credit being issued (or, in the case of Existing Letters of Credit, outstanding) on the Effective Date as if such Loans were made or such Letters of Credit were issued on the last day of such calendar month.

 

 

 

 

 

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(j) The Lenders shall have received all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act.

 

The Administrative Agent shall notify the Parent Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.  Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of each Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 3:00 p.m., New York City time, on April 30, 2009 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

 

SECTION 4.02. Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

 

(a) The representations and warranties of the Loan Parties set forth in the Loan Documents (except (i) in the case of Borrowings made solely to refinance maturing commercial paper issued by any of the Borrowers, the representations and warranties made under Sections 3.04(b), 3.06(a)(i) and 3.06(c) and (ii) in the case of any issuance, amendment, renewal or extension of a Trade Letter of Credit, the representations and warranties made under Section 3.10(b)) shall be true and correct on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable.

 

(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing.

 

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by Holdings and the relevant Borrower or the relevant Account Party, as applicable, on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.

 

SECTION 4.03. Borrowing Subsidiaries.  The obligation of each Lender to make a Loan on the occasion of the first Borrowing by a Borrowing Subsidiary is subject to receipt by the Administrative Agent of a Subsidiary Borrower Election with respect to such Borrowing Subsidiary in accordance with Section 2.20 and to the satisfaction of the following further conditions:

 

(a) The Administrative Agent shall have received one or more favorable written opinions of counsel for such Borrowing Subsidiary reasonably acceptable to the Administrative Agent, with respect to (i) the organization and existence of such Borrowing Subsidiary, (ii) the due authorization, execution and delivery of the Subsidiary Borrower Election, (iii) the legality, validity and binding effect on such Borrowing Subsidiary of the Subsidiary Borrower Election and this Agreement and (iv) such other 

 

 

 

 

 

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matters relating to such Borrowing Subsidiary as the Administrative Agent shall reasonably request.

 

(b) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of such Borrowing Subsidiary and its authorization to be a Borrower, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(c) The Lenders shall have received all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act, with respect to such Borrowing Subsidiary.

 

The Administrative Agent shall promptly provide to each Lender any documentation with respect to any Borrowing Subsidiary that was delivered to the Administrative Agent pursuant to this Section.

 

ARTICLE V

 

Affirmative Covenants

 

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, each of Holdings, the Parent Borrower and Purchasing covenants and agrees with the Lenders that:

 

SECTION 5.01. Financial Statements; Ratings Change and Other Information.  The Parent Borrower will furnish to the Administrative Agent for distribution to each Lender:

 

(a) as soon as available and, in any event, within 90 days after the end of each fiscal year of Holdings, its audited consolidated balance sheets and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by KPMG LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of Holdings and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

 

(b) as soon as available and, in any event, within 45 days after the end of each of the first three fiscal quarters of each fiscal year of Holdings, its consolidated balance sheets and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all 

 

 

 

 

 

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certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of Holdings and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;

 

(c) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of Holdings or the Parent Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Sections 6.09 and 6.10 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;

 

(d) within 30 days after the end of each fiscal year, an annual financial forecast (in a form consistent with forecasts previously provided) for Holdings and its Subsidiaries for the subsequent fiscal year (including a consolidated balance sheet of Holdings and its Subsidiaries as of the end of the prior fiscal year and consolidated statements of income and cash flows of Holdings and its Subsidiaries for such fiscal year);

 

(e) promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by Holdings or any Subsidiary with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of the functions of said Commission, or with any national securities exchange, or distributed by Holdings to its shareholders generally, as the case may be;

 

(f) promptly after (i) Moody’s or S&P shall have announced a change in the Credit Rating established or deemed to have been established by such rating agency, written notice of such Credit Rating change and (ii) Moody’s, S&P or Fitch shall have announced a change in the credit rating established by such rating agent with respect to this facility, written notice of such rating change;

 

(g) within 20 days after the end of each fiscal month, an Asset Coverage Certificate (together with any other supplemental reporting and supporting documentation reasonably requested by the Administrative Agent) calculating the Asset Coverage Ratio as of the last day of such fiscal month; and

 

(h) promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of Holdings or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent or any Lender may reasonably request.

 

SECTION 5.02. Notices of Material Events.  The Parent Borrower will furnish to the Administrative Agent for distribution to each Lender prompt written notice of the following:

 

 

 

 

 

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(a) the occurrence of any Default;

 

(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting Holdings, the Parent Borrower or any Subsidiary thereof that, if adversely determined, would result in a Material Adverse Effect;

 

(c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, would result in liability of Holdings and its Subsidiaries in an aggregate amount exceeding $100,000,000; and

 

(d) any other development that results in, or would reasonably be expected to result in, a Material Adverse Effect.

 

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Parent Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

SECTION 5.03. Information Regarding Collateral.  (a)  The Parent Borrower will furnish to the Administrative Agent prompt written notice of any change (i) in the legal name of any Loan Party, (ii) in the identity or type of organization or corporate structure of any Loan Party, (iii) in the Federal Taxpayer Identification Number or other identification number of any Loan Party, (iv) in the jurisdiction of organization of any Loan Party or (v) in the address set forth in the Uniform Commercial Code financing statement filed with respect to any Loan Party.  Holdings and the Parent Borrower agree not to effect or permit any change referred to in the preceding sentence unless all filings have been made under the Uniform Commercial Code or otherwise that are required in order for the Administrative Agent to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral.  The Parent Borrower also agrees promptly to notify the Administrative Agent if any material portion of the Collateral is damaged or destroyed.

 

(b) Each year, at the time of delivery of annual financial statements with respect to the preceding fiscal year pursuant to clause (a) of Section 5.01, the Parent Borrower shall deliver to the Administrative Agent a certificate of a Financial Officer and the chief legal officer of the Parent Borrower (i) setting forth the information required pursuant to the Perfection Certificate or confirming that there has been no change in such information since the date of the Perfection Certificate delivered on the Effective Date or the date of the most recent certificate delivered pursuant to this Section and (ii) certifying that all Uniform Commercial Code financing statements or other appropriate filings, recordings or registrations, including all refilings, rerecordings and reregistrations, containing a description of the Collateral have been filed of record (or delivered to the Administrative Agent for filing or recording) in each governmental, municipal or other appropriate office in each jurisdiction identified pursuant to clause (i) above to the extent necessary to protect and perfect the security interests under the Collateral Agreement for a period of not less than 18 months after the date of such certificate (except as noted therein with respect to any continuation statements to be filed within such period).

 

 

 

 

 

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(c) At any time during a Release Period, the provisions of paragraphs (a) and (b) of this Section 5.03 shall not apply.

 

SECTION 5.04. Existence; Conduct of Business.  Each of Holdings and the Parent Borrower will, and will cause each of its Material Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of the business of Holdings and its Subsidiaries (taken as a whole); provided that the foregoing shall not prohibit any merger, consolidation, liquidation, transfer of assets or dissolution permitted under Section 6.03.

 

SECTION 5.05. Payment of Obligations.  Each of Holdings and the Parent Borrower will, and will cause each of its Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, would result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) Holdings, the Parent Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest would not result in a Material Adverse Effect.

 

SECTION 5.06. Maintenance of Properties.  Each of Holdings and the Parent Borrower will, and will cause each of its Subsidiaries to, keep and maintain all property material to the conduct of the business of Holdings and its Subsidiaries (taken as a whole) in good working order and condition, ordinary wear and tear excepted; provided that nothing in this Section shall prevent Holdings or any Subsidiary from discontinuing the operations or maintenance of any of its properties no longer deemed by Holdings or such Subsidiary, as applicable, to be useful in the conduct of its business.

 

SECTION 5.07. Insurance.  Each of Holdings and the Parent Borrower will, and will cause each of its Material Subsidiaries to, maintain, with financially sound and reputable insurance companies (a) insurance in such amounts (with no greater risk retention) and against such risks as are customarily maintained by companies of established repute engaged in the same or similar businesses operating in the same or similar locations and (b) all insurance required to be maintained pursuant to the Collateral Agreement.  The Parent Borrower will furnish to the Lenders, upon request of the Administrative Agent, information in reasonable detail as to the insurance so maintained.

 

SECTION 5.08. Books and Records; Inspection Rights; Inventory Audits.  Each of Holdings and the Parent Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in accordance with GAAP.  Each of Holdings and the Parent Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice and without disruption of the normal and ordinary conduct of the business of Holdings, the Parent Borrower or any such Subsidiary, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested.  Each of Holdings and the Parent Borrower will, and will cause each of its Subsidiaries to, permit the 

 

 

 

 

 

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Administrative Agent or any auditor that is satisfactory to the Administrative Agent, at any time upon reasonable prior notice (but, unless an Event of Default has occurred and is continuing, no more than once during any calendar year), to perform audits of, conduct independent appraisals of and/or monitor the inventory of Holdings and its Subsidiaries, provided that at any time that at least two of Moody’s, S&P and Fitch issue ratings with respect to this facility, of Ba2, BB and BB, respectively, or worse, then (x) the Administrative Agent or any auditor satisfactory to the Administrative Agent will be permitted to (i) perform audits and conduct independent appraisals of the inventory of Holdings and its Subsidiaries but, except as provided in clause (ii), not more frequently than once in any 365-day period, and (ii) for so long as the aggregate Revolving Credit Exposures are more than 50% of the total Commitments, perform ongoing audits, conduct ongoing appraisals and/or continuously monitor the inventory of Holdings and its Subsidiaries and (y) Holdings will furnish to the Administrative Agent for distribution to each Lender within 20 days after the end of each fiscal month, a consolidated report of accounts payable for Holdings and its Subsidiaries (including aging details) as of the last day of such fiscal month and other information reasonably requested by the Administrative Agent in form and substance satisfactory to the Administrative Agent.

 

SECTION 5.09. Compliance with Laws.  Each of Holdings and the Parent Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, would not result in a Material Adverse Effect.

 

SECTION 5.10. Use of Proceeds and Letters of Credit.  The proceeds of the Loans will be used only for general corporate purposes, including working capital requirements, liquidity and the repayment of maturing commercial paper and other Indebtedness of the Parent Borrower and Purchasing (including Indebtedness under the Existing Credit Agreement).  No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.  Letters of Credit will be issued to support obligations of the Account Parties in respect of purchases of inventory in the ordinary course of business, as well as other obligations of Holdings and its Subsidiaries incurred without violation of this Agreement.

 

SECTION 5.11. Additional Guarantee Parties.  (a)  If any Subsidiary (other than any Foreign Subsidiary) becomes a Material Subsidiary or otherwise becomes a Guarantee Party after the Effective Date, Holdings and the Parent Borrower shall, within three Business Days after such Subsidiary becomes a Material Subsidiary or a Guarantee Party (as applicable), notify the Administrative Agent and the Lenders thereof and cause the Collateral and Guarantee Requirement to be satisfied with respect to such Subsidiary; provided that the requirements of this paragraph shall not apply during a Release Period.

 

(b) If a Release Period commences, Holdings and the Parent Borrower agree that at any time thereafter, if either rating agency shall then have a Credit Rating in effect that is worse than Baa2 or BBB, as applicable, then Holdings and the Parent Borrower will promptly, but in no event later than five Business Days thereafter, cause the Collateral and Guarantee Requirement to be satisfied.

 

 

 

 

 

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SECTION 5.12. Further Assurances.  Each of Holdings and the Parent Borrower will, and will cause each Guarantee Party and each Additional Grantor to, execute any and all further documents, financing statements, agreements and instruments, and take all such further actions, which may be required under any applicable law, or which the Administrative Agent or the Required Lenders may reasonably request, to cause the Collateral and Guarantee Requirement to be and remain satisfied, all at the expense of the Guarantee Parties and the Additional Grantors.  At any time other than during a Release Period, Holdings and the Parent Borrower also agree to provide to the Administrative Agent, from time to time upon request, evidence reasonably satisfactory to the Administrative Agent as to the perfection and priority of the Liens created or intended to be created by the Collateral Agreement.

 

SECTION 5.13. Maintenance of Ratings.  Holdings will use commercially reasonable efforts to maintain continuously in effect (i) a Credit Rating from each of Moody’s and S&P in respect of Holdings and (ii) a credit rating of this facility from each of Moody’s, S&P and Fitch.

 

SECTION 5.14. Prepayment Avoidance.  Holdings and the Parent Borrower will, and will cause each Subsidiary to, either repay or prepay Loans, or make investments in assets to be used in their businesses, in each case as necessary to avoid any mandatory redemption, repurchase or prepayment referred to in the proviso to clause (c) of the definition of “Disqualified Equity Interest” or the proviso to clause (h) of Section 6.01.

 

ARTICLE VI

 

Negative Covenants

 

Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees   payable hereunder have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, each of Holdings, the Parent Borrower and Purchasing covenants and agrees with the Lenders that:

 

SECTION 6.01. Indebtedness.  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:

 

(a) Indebtedness created under the Loan Documents;

 

(b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof (other than in respect of any premium or fee payable in connection with such extension, renewal or replacement) or result in an earlier maturity date or decreased weighted average life thereof; provided that Indebtedness in respect of which the holders thereof have the unconditional right to require the issuer thereof to effect a redemption of such Indebtedness for cash prior to the stated maturity date of such Indebtedness shall be treated as maturing on the nearest such redemption date for purposes of the foregoing calculations;

 

 

 

 

 

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(c) Indebtedness of Holdings to any Subsidiary and of any Subsidiary to Holdings or any other Subsidiary;

 

(d) Guarantees by Holdings of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of (i) so long as such Subsidiary also guarantees the Obligations on a pari passu basis, any Loan Party or (ii) any other Subsidiary;

 

(e) Indebtedness of Holdings or any Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof; provided that (i) such Indebtedness is incurred prior to or within 90 days after such acquisition or the completion of such construction or improvement and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) shall not exceed $500,000,000 at any time outstanding;

 

(f) Indebtedness of any Person that becomes a Subsidiary after the date hereof; provided that (i) such Indebtedness exists at the time such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (ii) the aggregate principal amount of Indebtedness permitted by this clause (f) shall not exceed $150,000,000 at any time outstanding;

 

(g) Permitted Long-Term Indebtedness;

 

(h) Indebtedness in an aggregate principal amount not to exceed $750,000,000 and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof (other than in respect of any premium or fee payable in connection with such extension, renewal or replacement), provided that such Indebtedness (i) shall be secured on a second-priority basis only by Collateral of the Loan Parties and shall be subject to the Intercreditor Agreement, (ii) shall not mature on or prior to the Specified Date, (iii) shall not have terms more restrictive, taken as a whole, than those set forth in this Agreement and (iv) shall be subject only to mandatory prepayments, if any, that can be avoided through repayment or prepayment of Loans or through investments by Holdings and its consolidated Subsidiaries in assets to be used in their businesses, provided, further, that no such Indebtedness may be incurred, extended, renewed or replaced at any time during a Release Period; and

 

(i) other unsecured Indebtedness in an aggregate principal amount not exceeding $150,000,000 at any time outstanding.

 

SECTION 6.02. Liens.  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:

 

(a) Liens created under the Loan Documents;

 

 

 

 

 

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(b) Permitted Encumbrances;

 

(c) any Lien on any property or asset of Holdings or any Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of Holdings or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof, other than in respect of any premium or fee payable in connection with such extension, renewal or replacement;

 

(d) any Lien existing on any property or asset prior to the acquisition thereof by Holdings or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of Holdings or any Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof, other than in respect of any premium or fee payable in connection with such extension, renewal or replacement;

 

(e) Liens on fixed or capital assets acquired, constructed or improved by Holdings or any Subsidiary; provided that (i) such security interests secure Indebtedness permitted by clause (e) of Section 6.01, (ii) such security interests and the Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such security interests shall not apply to any other property or assets of Holdings or any Subsidiaries;

 

(f) Liens in respect of leases or subleases granted to other Persons in the ordinary course of business and not materially interfering with the conduct of business of Holdings and its Subsidiaries;

 

(g) Liens arising out of conditional sale, title retention, consignment (including “sale or return” arrangements) or similar arrangements for the sale of goods entered into by the Parent Borrower or any of its Subsidiaries in the ordinary course of business in accordance with the past practices of the Parent Borrower and its Subsidiaries, provided that the aggregate amount of such goods shall not exceed $200,000,000;

 

(h) Liens in favor of customs and revenue authorities arising as a matter of law securing payment of customs duties in connection with the importation of goods;

 

(i) Liens on accounts receivable of the Parent Borrower or any of its Subsidiaries that arise from the securitization of such accounts receivable;

 

 

 

 

 

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(j) Liens (other than Liens on any inventory constituting Collateral) securing Indebtedness of a Subsidiary to the Parent Borrower;

 

(k) second-priority Liens on the Collateral securing Indebtedness permitted pursuant to Section 6.01(h), provided that such second-priority Liens shall not be permitted during a Release Period; and

 

(l) other Liens (other than Liens on any inventory constituting Collateral) securing monetary obligations, provided that (i) the sum of the aggregate amount of all monetary obligations secured by Liens pursuant to this clause (l), plus the aggregate amount of all cash consideration received on or after the Effective Date in respect of sale leaseback transactions made in reliance on clause (b) of Section 6.06, shall not exceed 7.50% of Net Tangible Assets at any time and (ii) the aggregate book value of all assets subject to Liens pursuant to this clause (l) shall not at any time exceed $225,000,000.

 

SECTION 6.03. Fundamental Changes.  (a)  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of the assets of the Parent Borrower and its Subsidiaries, taken as a whole, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing (i) any Person may merge into the Parent Borrower in a transaction in which the Parent Borrower is the surviving corporation, (ii) any Person may merge into or consolidate with any Subsidiary in a transaction in which the surviving entity is a Subsidiary and (if any party to such merger or consolidation is a Loan Party) is a Loan Party and (iii) any Subsidiary (other than a Loan Party) may liquidate or dissolve if the Parent Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Parent Borrower and is not materially disadvantageous to the Lenders; provided that any such merger involving a Person that is not a wholly owned Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 6.04.

 

(b) Holdings will not, and will not permit any of its Subsidiaries to, engage to any extent material to Holdings and its Subsidiaries (taken as a whole) in any business other than businesses of the type conducted by Holdings and its Subsidiaries on the date of execution of this Agreement and businesses reasonably related, ancillary or complementary to the business or businesses of Holdings or any Subsidiary.

 

SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions.  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any Equity Interests, evidences of Indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or hold any loans or advances to, Guarantee any obligations of, or make or hold any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except:

 

(a) Permitted Investments;

 

 

 

 

 

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(b) investments existing on the date hereof and set forth on Schedule 6.04;

 

(c) investments by Holdings and its Subsidiaries in Equity Interests in their respective Subsidiaries;

 

(d) loans or advances made by Holdings to any Subsidiary and made by any Subsidiary to Holdings or any other Subsidiary;

 

(e) Guarantees, subject to the limitations of Section 6.01 in the case of Indebtedness of Subsidiaries that are not Guarantee Parties;

 

(f) investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary course of business; and

 

(g) other investments; provided that at the time of and after giving effect to any such investment, (i) Holdings and the Parent Borrower will be in compliance on a pro forma basis with (A) the covenants contained in Sections 6.09 and 6.10, recomputed as of the last day of the most recently ended fiscal quarter of the Parent Borrower for which financial statements are available and (B) the covenant contained in Section 6.11, recomputed as of the last day of the most recently ended fiscal month of the Parent Borrower, as if such investment and all other investments made in reliance on this clause (g) had occurred on the first day of each relevant period for testing such compliance and (ii) no Default shall have occurred and be continuing.

 

SECTION 6.05. Asset Sales.  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, sell, transfer, lease or otherwise dispose of any asset, including any Equity Interest owned by it, nor will Holdings and the Parent Borrower permit any Subsidiary to issue any additional Equity Interest in such Subsidiary, except:

 

(a) sales of inventory, used or surplus equipment and Permitted Investments, in each case in the ordinary course of business;

 

(b) disposals of inventory pursuant to promotional or similar activities in the ordinary course of business;

 

(c) sales, transfers and dispositions to the Parent Borrower or a Subsidiary;

 

(d) transfers and dispositions of interests in real property (including leasehold interests) in exchange for consideration that constitutes interests in real property (including leasehold interests) to the extent that any such transfer or disposition qualifies as a “like-kind” exchange under Section 1031 of the Code;

 

(e) sales of fixed or capital assets pursuant to Section 6.06(a); and

 

(f) sales, transfers and other dispositions of assets (other than Equity Interests in a Subsidiary) that are not permitted by any other clause of this Section, provided that (i) Holdings and the Parent Borrower will be in compliance on a pro forma basis with the

 

 

 

 

 

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covenants contained in Sections 6.09, 6.10 and 6.11, recomputed as of the last day of the most recently ended fiscal quarter of the Parent Borrower for which financial statements are available as if such sale, transfer or disposition and all other sales, transfers or dispositions made in reliance on this clause (f) had occurred on the first day of each relevant period for testing such compliance and (ii) no Default shall have occurred and be continuing;

 

provided that all sales, transfers, leases and other dispositions permitted hereby (other than those permitted by clauses (b) and (c) above) shall be made for fair value.  This Section shall not be construed to prohibit transfers of cash by Holdings or any of its Subsidiaries that are not prohibited by any other provision of this Agreement.

 

SECTION 6.06. Sale and Leaseback Transactions.  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property (real or personal) used or useful in its business, whether now owned or hereinafter 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 sold or transferred, except for any such sale of fixed or capital assets that (a) is made for cash consideration in an amount not less than the cost of such fixed or capital asset and is consummated within 90 days after Holdings, the Parent Borrower or such Subsidiary, as applicable, acquires or completes the construction of such fixed or capital asset or (b) is made for cash consideration in an amount not less than the fair value of such fixed or capital asset; provided that (i) any such sale or transfer made in reliance on clause (b) is permitted by Section 6.05(f) and (ii) the sum of the aggregate amount of all cash consideration received on or after the Effective Date in respect of all sale and leaseback transactions made in reliance on clause (b), plus the aggregate amount of all monetary obligations secured by Liens pursuant to clause (l) of Section 6.02, shall not exceed 7.50% of Net Tangible Assets at any time.

 

SECTION 6.07. Restricted Payments.  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except:

 

(a) any wholly-owned Subsidiary may distribute any cash, property or assets to Holdings, the Parent Borrower or any other Subsidiary that is its direct or indirect parent;

 

(b) any Subsidiary may declare and pay dividends ratably with respect to its Equity Interests;

 

(c) Holdings may make Restricted Payments in cash in an aggregate amount not to exceed $250,000,000 during any fiscal year; provided that, at the time of declaration (in the case of a dividend) or payment (in all other cases) and after giving effect thereto, (i) no Default has occurred and is continuing and (ii) Holdings would be in compliance with Sections 6.09 and 6.11 after giving effect to such Restricted Payment and any Indebtedness being incurred in connection therewith; and

 

(d) Holdings may make any additional Restricted Payment in cash; provided that (i) the amount of such Restricted Payment, together with the aggregate amount of all other

 

 

 

 

 

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Restricted Payments made by Holdings after the Effective Date (other than those made pursuant to clause (c) above), does not exceed the sum, without duplication, of (A) 50% of Consolidated Net Income for the period (taken as one accounting period) from the beginning of the first fiscal quarter ending after the Effective Date to the end of Holdings’ most recently ended fiscal quarter for which financial statements are publicly available at the time of such Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, minus 100% of such deficit); plus (B) 100% of the aggregate net cash proceeds received by Holdings, during the period from the Effective Date to the date of such Restricted Payment, from the issuance by Holdings of additional Equity Interests (other than Disqualified Equity Interests or Equity Interests issued to a Subsidiary or to an employee stock ownership plan or trust), and (ii) at the time of declaration (in the case of a dividend) or payment (in all other cases) and after giving effect thereto, (i) no Default has occurred and is continuing and (ii) Holdings would be in compliance with Sections 6.09 and 6.11 after giving effect to such Restricted Payment and any Indebtedness being incurred in connection therewith.

 

Notwithstanding the foregoing, this Section 6.07 shall not apply at any time that (i) if both rating agencies shall then have a Credit Rating in effect, the Credit Ratings are Baa2 and BBB, respectively, with stable outlook or better or (ii) if only one rating agency shall then have a Credit Rating in effect, such Credit Rating is Baa2 or BBB, as applicable, with stable outlook or better.

 

SECTION 6.08. Restrictive Agreements.  Neither Holdings nor the Parent Borrower will, nor will they permit any Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon the ability of Holdings or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets to secure the Obligations (or any Indebtedness incurred to refinance or replace the Obligations); provided that (a) the foregoing shall not apply to restrictions and conditions imposed by law or by any Loan Document, (b) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.08 or to any refinancing, extension or renewal of, or any amendment or modification of, any Indebtedness or other agreement existing on the date hereof containing any such restriction or condition (but without expanding the scope of any such restriction or condition), (c) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (d) the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness and (e) the foregoing shall not apply to customary provisions in leases and other contracts restricting the assignment, pledge or mortgage thereof.

 

SECTION 6.09. Leverage Ratio.  The Leverage Ratio as of the last day of any fiscal quarter ending during any period set forth below shall not exceed the ratio set forth below opposite such period:

 

 

 

 

 

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Period

	
Ratio

	
Effective Date through and including the 

last day of the fiscal quarter ending on or 

about January 30, 2010

 

	
4.00 to 1.00

 

	
Thereafter through and including the last 

day of the fiscal quarter ending on or 

about October 30, 2010

 

	
3.50 to 1.00

 

	
Thereafter

	
3.00 to 1.00

 

SECTION 6.10. Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio for any period of four consecutive fiscal quarters of Holdings ending during any period set forth below shall not be less than the ratio set forth below opposite such period:

 

	
Periods Ending

	
Ratio

	
Effective Date through and including the 

last day of the fiscal quarter ending on or 

about October 30, 2010

 

	
2.25 to 1.00

 

	
Thereafter through and including the 

last day of the fiscal quarter ending on or 

about October 29, 2011

 

	
2.50 to 1.00

 

	
Thereafter

	
3.00 to 1.00

 

SECTION 6.11. Asset Coverage Ratio.  The Asset Coverage Ratio as of any date shall not be less than 3.00 to 1.00.

 

SECTION 6.12. Restriction on Non-Material Subsidiaries.  Neither Holdings nor the Parent Borrower will permit, at any time, the Non-Material Subsidiaries that have not satisfied the Collateral and Guarantee Requirement to have, in the aggregate, Net Tangible Assets representing in excess of 5% of the total Net Tangible Assets of Holdings and its Subsidiaries.

 

ARTICLE VII

 

Events of Default

 

SECTION 7.01. Events of Default.  If any of the following events (“Events of Default”) shall occur:

 

 

 

 

 

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(a) any Borrower shall fail to pay any principal of any Loan of such Borrower or any Account Party shall fail to reimburse any LC Disbursement made in respect of a Letter of Credit issued for the account of such Account Party, in each case when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

 

(b) any Borrower or any Account Party shall fail to pay any interest or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable by it under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five days;

 

(c) any representation or warranty made or deemed made by or on behalf of any Loan Party in or pursuant to any Loan Document or any amendment or modification thereof or waiver thereunder, or any material representation or warranty in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made;

 

(d) Holdings, the Parent Borrower or Purchasing shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02, 5.04 (with respect to the existence of Holdings, the Parent Borrower or Purchasing) or 5.10 or in Article VI;

 

(e) any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in any Loan Document (other than those specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of 30 days after notice thereof from the Administrative Agent to the Parent Borrower (which notice will be given at the request of any Lender);

 

(f) Holdings or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable;

 

(g) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to (i) secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness and (ii) Indebtedness in respect of which the holders thereof have the unconditional right to require the issuer thereof to effect a redemption of such Indebtedness prior to the stated maturity of such Indebtedness, solely as a result of the exercise by such holders of such right;

 

 

 

 

 

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(h) subject to Section 7.02, an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of Holdings or any Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for Holdings or any Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;

 

(i) subject to Section 7.02, Holdings or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for Holdings or any Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

 

(j) subject to Section 7.02, Holdings or any Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

 

(k) one or more judgments for the payment of money in an aggregate amount in excess of $100,000,000 (to the extent not covered by independent third party insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute coverage) shall be rendered against Holdings, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of Holdings or any Subsidiary to enforce any such judgment;

 

(l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, would result in a Material Adverse Effect;

 

(m) at any time other than during a Release Period, any Lien purported to be created under the Collateral Agreement shall cease to be, or shall be asserted by any Loan Party not to be, a valid and perfected Lien on any Collateral having an aggregate fair value of $10,000,000 or more, with the priority required by the Collateral Agreement, except as a result of the sale or other disposition of the applicable Collateral in a transaction not prohibited under the Loan Documents; or

 

(n) a Change in Control shall occur;

 

 

 

 

 

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then, and in every such event (other than an event with respect to Holdings, a Borrower or an Account Party described in clause (h) or (i) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, with the consent of the Required Lenders, and shall, at the request of the Required Lenders, by notice to the Parent Borrower, take either or both of the following actions, at the same or different times:  (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrowers and the Account Parties accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Borrower and each Account Party; and in case of any event with respect to Holdings, a Borrower or an Account Party described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrowers and the Account Parties accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Borrower and each Account Party.

 

SECTION 7.02. Exclusion of Immaterial Subsidiaries.  At any time during a Release Period, solely for purposes of determining whether a Default has occurred under clause (h), (i) or (j) of Section 7.01, any reference in any such clause to any “Subsidiary” shall be deemed to exclude any Subsidiary that is not a Material Subsidiary affected by any event or circumstance referred to in any such clause; provided, that if it is necessary to exclude more than one Subsidiary from clause (h), (i) or (j) of Section 7.01 pursuant to this Section in order to avoid a Default thereunder, all excluded Subsidiaries shall be considered to be a single consolidated Subsidiary for purposes of determining whether any excluded Subsidiary is a Material Subsidiary.

 

ARTICLE VIII

 

The Administrative Agent

 

Each of the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative Agent as its agent 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 of the Loan Documents, together with such actions and powers as are reasonably incidental thereto.

 

The bank 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 such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with Holdings, the Parent Borrower or any other Subsidiary or Affiliate thereof as if it were not the Administrative Agent hereunder.

 

 

 

 

 

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The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents.  Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Holdings or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by Holdings, the Parent Borrower, Purchasing or a Lender, and 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 any Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to the 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 believed by it to be genuine and to have been signed or sent 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 be made by the proper Person, and shall not incur any liability for relying thereon.  The Administrative Agent may consult with legal counsel (who may be counsel for the Parent Borrower), 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.

 

The Administrative Agent may perform any and all its duties and exercise its rights and powers 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 its duties and exercise its rights and powers through their respective Related Parties.  The exculpatory provisions of the preceding paragraphs 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 respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

 

 

 

 

 

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Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, each Issuing Bank and the Parent Borrower.  Upon any such resignation, the Required Lenders shall have the right, with the consent of the Parent Borrower, to appoint a successor (provided, that such Parent Borrower consent (i) shall not be unreasonably withheld and (ii) shall not be required if, at the time of such appointment, an Event of Default has occurred and is continuing).  If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder.  The fees payable by the Parent Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Parent Borrower and such successor.  After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring 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 it was acting as Administrative Agent.

 

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender 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 Loan Document or related agreement or any document furnished hereunder or thereunder.  The Joint Bookrunners, Co-Lead Arrangers and Syndication Agent (each as identified on the cover page of this Agreement), in their capacities as such, shall have no rights, powers, duties, liabilities, fiduciary relationships or obligations under this Agreement or any other documents related thereto.

 

Each of the Lenders hereby (a) authorizes and instructs the Administrative Agent to enter into an Intercreditor Agreement if Indebtedness is incurred that is secured by Liens contemplated by clause (k) of Section 6.02 and (b) agrees that it will be bound by and will take no actions contrary to the provisions of such Intercreditor Agreement.

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01. Notices.  (a)  Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be

 

 

 

 

 

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delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

 

(i) if to Holdings, the Parent Borrower or Purchasing, to it at J. C. Penney Corporation, Inc., 6501 Legacy Drive, Mail Code 1304, Plano, TX 75024, Attention of the Treasurer (Telecopy No. (972) 431-2044), with a copy to the General Counsel of the Parent Borrower;

 

(ii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., Loan and Agency Services Group, 1111 Fannin Street, Floor 10, Houston, Texas 77002-6925, Attention of Thai Pham, Loan & Agency Services (Telecopy No. (713) 750-2956), with a copy to JPMorgan Chase Bank, N.A., 270 Park Avenue, Floor 4, New York, New York 10017, Attention of Barry Bergman (Telecopy No. (212) 270-3279); and

 

(iii) if to any other Lender, any Issuing Bank or any Swingline Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire.

 

(b) Notices and other communications to the Issuing Banks and Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Issuing Bank or Lender.  The Administrative Agent, Holdings, the Parent Borrower or Purchasing may, in 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.

 

(c) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto.  All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

 

SECTION 9.02. Waivers; Amendments.  (a)  No failure or delay by the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, each Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time.

 

 

 

 

 

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(b) Except with respect to any amendment to this Agreement contemplated by the definition of “Permitted Holding Company Reorganization” (which amendment shall be permitted if entered into by the parties referred to therein), neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified except, in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by Holdings, the Borrowers, the Account Parties and the Required Lenders or, in the case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, in each case with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.17(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision of any Loan Document specifying the number or percentage of Lenders required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender, (vi) release all or substantially all of the Loan Parties from their Guarantees under the Collateral Agreement (except as expressly provided in the Collateral Agreement), or limit their liability in respect of such Guarantees, without the written consent of each Lender, (vii) release all or substantially all of the Collateral from the Liens of the Collateral Agreement (except as expressly provided in Section 6.15(d) of the Collateral Agreement) without the written consent of each Lender or (viii) change Section 2.05(k)(i) in a manner that would alter the participation obligation of any Lender, without the written consent of such Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any Issuing Bank or any Swingline Lender hereunder without the prior written consent of the Administrative Agent, such Issuing Bank or such Swingline Lender, as the case may be.

 

SECTION 9.03. Expenses; Indemnity; Damage Waiver.  (a)  The Parent Borrower and the other Loan Parties, jointly and severally, shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of the Loan Documents or any amendments, modifications or waivers of the provisions thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by each Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, (iii) all reasonable out-of-pocket expenses incurred by the Administrative Agent, any Issuing Bank or any Lender, including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent, any Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with the Loan Documents, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such reasonable out-of-pocket expenses incurred 

 

 

 

 

 

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during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit and (iv) all fees associated with, and all reasonable out-of-pocket expenses incurred by the Administrative Agent in connection with, any inventory audit performed by the Administrative Agent or any auditor that is satisfactory to the Administrative Agent on behalf of the Administrative Agent, as well as any such expenses incurred by the Administrative Agent in connection with the monitoring and independent appraisals of such inventory, in each case as contemplated by Section 5.08.

 

(b) The Parent Borrower and the other Account Parties, jointly and severally, shall indemnify the Administrative Agent, each Issuing Bank and each Lender, 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 reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any other agreement or instrument contemplated hereby, the performance by the parties to the Loan Documents of their respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by an 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), or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory 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) arise in connection with any judgment rendered by a court of competent jurisdiction in favor of any Borrower or Account Party against such Indemnitee, (y) result from the gross negligence or willful misconduct of such Indemnitee (as finally determined by a court of competent jurisdiction) or (z) result from any dispute among the Lenders and the Administrative Agent, or any of them, other than disputes resulting from the fault of any Loan Party.  This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses or damages arising from any non-Tax claim.

 

(c) To the extent that the Parent Borrower or any other Account Party fails to pay any amount required to be paid by it to the Administrative Agent, any Issuing Bank or any Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent, the applicable Issuing Bank or the applicable Swingline Lender, as the case may be, such Lender’s Applicable Percentage (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, the applicable Issuing Bank or the applicable Swingline Lender in its capacity as such.

 

(d) To the extent permitted by applicable law, neither Holdings, any Borrower nor any Account Party 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 or

 

 

 

 

 

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any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

 

(e) All amounts due under this Section shall be payable not later than 30 days after written demand therefor.

 

SECTION 9.04. Successors and Assigns.  (a)  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 (including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that (i) neither Holdings, any Borrower nor any Account Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by Holdings, any Borrower or any Account Party without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.  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 (including any Affiliate of any Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, any Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b) (i)  Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees (other than Holdings or any Subsidiary or Affiliate thereof) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); with the prior written consent (such consent not to be unreasonably withheld) of:

 

(A) the Parent Borrower, provided that no consent of the Parent Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender or, if an Event of Default has occurred and is continuing, any other assignee; and

 

(B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment to an assignee that is a Lender or an Affiliate of a Lender immediately prior to giving effect to such assignment.

 

(ii) Assignments shall be subject to the following conditions:

 

(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment, the amount of the Commitment of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Parent Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Parent Borrower shall be required if an Event of Default under clause (a), (b), (h) or (i) of Section 7.01 has occurred and is continuing;

 

 

 

 

 

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(B) 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;

 

(C) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; provided that such fee shall not apply to any assignment made by a Lender to an Affiliate of such Lender;

 

(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and

 

(E) any Person that is a Fee Receiver but not a Permitted Fee Receiver shall not be an assignee without the written consent of the Administrative Agent (whether or not an Event of Default has occurred) (which consent may be withheld in the Administrative Agent’s sole discretion).

 

(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.14, 2.15, 2.16 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 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 paragraph (c) of this Section.

 

(iv) The Administrative Agent, acting for this purpose as an agent of the Borrowers and the Account Parties, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and Holdings, the Borrowers, the Account Parties, the Administrative Agent, the Issuing Banks and the Lenders may 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 Parent Borrower, any Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and

 

 

 

 

 

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Assumption and record the information contained therein in the Register.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

 

(vi) In the case of any assignment for which the Parent Borrower’s consent is not required, the Administrative Agent shall provide the Parent Borrower with notice promptly upon receipt of an Assignment and Assumption with respect to such assignment.

 

(c) (i)  Any Lender may, without the consent of Holdings, any Borrower, any Account Party, the Administrative Agent, any Issuing Bank or any Swingline Lender, sell participations to one or more banks or other entities (other than any bank or entity that would be a Fee Receiver but not a Permitted Fee Receiver, unless such Fee Receiver receives written consent of the Administrative Agent (which consent may be withheld in the Administrative Agent’s sole discretion)) (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) Holdings, the Borrowers, the Account Parties, the Administrative Agent, each Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For any avoidance of doubt, such Lender shall be responsible for the indemnity under Section 2.16(d) with respect to any payments made to such Participant.  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 the Loan Documents and to approve any amendment, modification or waiver of any provision of the Loan Documents; 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 the first proviso to Section 9.02(b) that affects such Participant.  Subject to paragraph (c)(ii) of this Section, Holdings, the Borrowers and the Account Parties agree that each Participant shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided that such Participant agrees to be subject to Sections 2.17(c) and 2.18 as though it were a Lender.  Each Lender that sells a participation, acting for this purpose as an agent of the Borrowers and the Account Parties, shall 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 this Agreement (the “Participant Register”).  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.

 

(ii) A Participant shall not be entitled to receive any greater payment under Section 2.14 or 2.16 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the prior written consent of the Parent Borrower (not to be unreasonably withheld or delayed), provided that the Participant shall be subject to the provisions of Sections 2.17(c) and 2.18.

 

 

 

 

 

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(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

SECTION 9.05. Survival.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.14, 2.15, 2.16 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof.

 

SECTION 9.06. Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan 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 4.01, 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 which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 9.07. Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

SECTION 9.08. Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Issuing Bank and Lender and each of its Affiliates is hereby authorized at

 

 

 

 

 

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any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Issuing Bank or Lender or Affiliate to or for the credit or the account of any Borrower or any Account Party against any of and all the obligations of such Borrower or such Account Party (as the case may be) now or hereafter existing under this Agreement held by such Issuing Bank or Lender, irrespective of whether or not such Issuing Bank or Lender shall have made any demand under this Agreement and although such obligations may be unmatured.  The rights of each Issuing Bank and Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Issuing Bank or Lender may have.  Any Lender or Issuing Bank exercising its rights under this Section shall give notice thereof to the relevant Borrower and the relevant Account Party on or prior to the day of the exercise of such rights.

 

SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process.  (a)  This Agreement shall be construed in accordance with and governed by the laws of the State of New York.

 

(b) Each of Holdings, the Borrowers and the Account Parties hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby 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 or, to the extent permitted by 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 any other Loan Document shall affect any right that the Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against Holdings, a Borrower or an Account Party or any of their respective properties in the courts of any jurisdiction.

 

(c) Each of Holdings, the Borrowers and the Account Parties hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

 

 

 

 

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SECTION 9.10. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY 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 INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SECTION 9.11. Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

SECTION 9.12. Confidentiality.  (a) Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (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), (ii) to the extent requested by any regulatory authority, (iii) to the extent  required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this Agreement, (v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any Swap Agreement relating to the Loan Parties and their Obligations, (vii) with the consent of the Parent Borrower or (viii) to the extent such Information (A) becomes publicly available other than as a result of a breach of this Section or (B) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than Holdings, a Borrower or an Account Party.  For the purposes of this Section, “Information” means all information received from Holdings, any Borrower or any Account Party relating to Holdings, any Borrower, any Account Party or their respective business, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by Holdings, any Borrower or any Account Party.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

 

 

 

 

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(b) Each Lender acknowledges that Information as defined in Section 9.12(a) furnished to it pursuant to this Agreement may include material non-public Information concerning the Loan Parties and their securities, and confirms that it has developed compliance procedures regarding the use of material non-public Information and that it will handle such material non-public Information in accordance with those procedures, applicable law, including Federal and state securities laws, and the terms hereof.

 

(c) All information, including waivers and amendments, furnished by the Loan Parties, their representatives or the Administrative Agent pursuant to, or in the course of administering, this Agreement will be syndicate-level information, which may contain material non-public Information about the Loan Parties and their securities.  Accordingly, each Lender represents to Holdings (on behalf of the Loan Parties) and the Administrative Agent that it has identified in its Administrative Questionnaire a credit contact who may receive Information that may contain material non-public Information in accordance with its compliance procedures, applicable law and the terms hereof.

 

SECTION 9.13. Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

SECTION 9.14. USA Patriot Act.  Each Lender hereby notifies each of the Loan Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies Loan Parties, which information includes the name and address of such Loan Parties and other information that will allow such Lender to identify such Loan Parties in accordance with the Patriot Act.

 

SECTION 9.15. Waiver Under Existing Credit Agreement.  Each of the Lenders party hereto that is a “Lender” under the Existing Credit Agreement hereby waives advance notice of the termination of the commitments and prepayment of the loans under the Existing Credit Agreement; provided that notice thereof is provided on the Effective Date.

 

[The remainder of this page has been left blank intentionally.]

 

 

 

 

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

 

 

	
J. C. PENNEY COMPANY, INC.,

 

	  	
by: /s/ R. B. Cavanaugh   

	  	
Name: R. B. Cavanaugh                  

	  	
Title: Executive Vice President and 

Chief Financial Officer 

 

	
          J. C. PENNEY CORPORATION, INC.,

 

	  	
by: /s/ M. D. Porter   

	  	
Name: M. D. Porter                  

	  	
Title: Vice President, Treasurer

 

	
                         J. C. PENNEY PURCHASING CORPORATION,

 

	  	
by: /s/ M. D. Porter   

	  	
Name: M. D. Porter                  

	  	
Title: Vice President, Treasurer of 

         J. C. Penney Corporation, Inc.

 

	
                         JPMORGAN CHASE BANK, N.A., individually

and as Administrative Agent,         

 

	  	
by: /s/ Barry Bergman   

	  	
Name: Barry Bergman               

	  	
Title: Managing Director

 

 

 

 

 

	

WACHOVIA BANK, NATIONAL 

 ASSOCIATION, individually and as  LC Agent,

 

	  	
by: /s/ Susan T. Gallagher   

	  	
Name: Susan T. Gallagher                  

	  	
Title: Director 

 

 

 

 

 

	

                                                                                 

	
 

 

 

    

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Bank of America, N. A. 

 

by: /s/ Michael B. Delaney   

	  	
Name: Michael B. Delaney                  

	  	
Title: Vice President

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Barclays Bank PLC

 

by: /s/ Russell C. Johnson   

	  	
Name: Russell C. Johnson                 

	  	
Title: Director

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Compass Bank 

 

by: /s/ Randall L. Morrison   

	  	
Name: Randall L. Morrison                  

	  	
Title: Managing Director

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: HSBC Bank USA, N.A.

  452 FIFTH AVENUE

  TOWER 4

NEW YORK, NY 10018

 

by: /s/ Elizabeth R. Peck   

	  	
Name: Elizabeth R. Peck                   

	  	
Title: SVP

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: U.S. Bank National Association

 

by: /s/ Veronica Morrissette   

	  	
Name: Veronica Morrissette                 

	  	
Title: Vice President 

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Bank of New York Mellon

 

by: /s/ Timothy J. Glass   

	  	
Name: Timothy J. Glass                  

	  	
Title: Vice-President 

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Standard Chartered Bank

 

by: /s/ James Hughes   

	  	
Name: James Hughes                  

	  	
Title: Director         

	 	 
	 	by: /s/ Robert K. Reddington   
	 	Name: Robert K. Reddington 
	 	Title: AVP/Credit Documentation
	 	         Credit Risk Control
	 	         Standard Chartered Bank N.Y. 
	 	 

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: State Street Bank and Trust Company 

 

by: /s/ Juan G. Sierra   

	  	
Name: Juan G. Sierra                   

	  	
Title: Vice President 

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: UMB Bank n.a. 

 

by: /s/ David A. Proffitt   

	  	
Name: David A. Proffitt                  

	  	
Title: Senior Vice President 

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: KeyBank National Association 

 

by: /s/ Marianne T. Meil   

	  	
Name: Marianne T. Meil                  

	  	
Title: Senior Vice President 

 

 

 

 

 

	

                                                                                 

	
 

 

 

    

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: PNC Bank, National Association

 

by: /s/ Dale A. Stein   

	  	
Name: Dale A. Stein                  

	  	
Title: Senior Vice President 

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Union Bank, N.A. 

 

by: /s/ Donald Smith    

	  	
Name: Donald Smith                   

	  	
Title: Credit Executive 

 

 

 

 

 

	

                                                                                 

	
 

 

 

    

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Banco Popular de Puerto Rico  

 

by: /s/ Hector  J. Gonzalez   

	  	
Name: Hector J. Gonzalez                  

	  	
Title: Vice President

 

 

 

 

 

	

                                                                                 

	
 

 

 

     

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: The Northern Trust Company 

 

by: /s/ Morgan A. Lyons   

	  	
Name: Morgan A. Lyons                  

	  	
Title: Vice President

 

 

 

 

 

	

                                                                                 

	
 

 

 

    

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Citibank, N.A.

 

by: /s/ John McQuiston    

	  	
Name: John McQuiston                 

	  	
Title: Vice President & Director

 

 

 

 

 

	

                                                                                 

	
 

 

 

    

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: The Bank of Tokyo-Mitsubishi UFJ, LTD. 

 

by: /s/ D. Barnell   

	  	
Name: D. Barnell                  

	  	
Title: Authorized Signatory

 

 

 

 

 

	

                                                                                 

	
 

 

 

    

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Capital One, N.A. 

 

by: /s/ Mary Jo Hoch   

	  	
Name: Mary Jo Hoch                  

	  	
Title: SVP

 

 

 

 

 

	

                                                                                 

	
 

 

 

    

	
SIGNATURE PAGE TO J.C. PENNEY COMPANY, INC. 

CREDIT AGREEMENT, DATED AS OF THE DATE 

FIRST WRITTEN ABOVE

 

LENDER: Chang Hwa Commercial, Ltd., New York Branch 

 

by: /s/ Jim C.Y. Chen    

	  	
Name: Jim C.Y. Chen        

	  	
Title: V. P. and General Manager 

  

  

 

  

SCHEDULE 2.01

Commitments

	
INSTITUTION

	
COMMITMENT

	
JP Morgan Chase Bank, N.A.

	
$75,000,000

	
Bank of America, N.A.

	
75,000,000

	
Barclays Bank, PLC

	
75,000,000

	
Wachovia Bank, National Association

	
75,000,000

	
Compass Bank

	
50,000,000

	
HSBC Bank USA, N.A.

	
50,000,000

	
U.S. Bank National Association

	
50,000,000

	
Bank of New York Mellon

	
40,000,000

	
Standard Chartered Bank

	
40,000,000

	
State Street Bank and Trust Company

	
35,000,000

	
UMB Bank, n.a.

	
30,000,000

	
KeyBank National Association

	
25,000,000

	
PNC Bank, National Association

	
25,000,000

	
Union Bank, N.A.

	
25,000,000

	
Banco Popular de Puerto Rico

	
20,000,000

	
The Northern Trust Company

	
20,000,000

	
Citibank, N.A.

	
15,000,000

	
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

	
10,000,000

	
Capital One, N.A.

	
10,000,000

	
Chang Hwa Commercial Bank, Ltd.

	
5,000,000

	
Total

	
$750,000,000

 

  

  

 

  

SCHEDULE 2.05

Issuing Banks

Bank of America, N.A.

Bank of New York Mellon

Barclays Bank, PLC

Compass Bank

HSBC Bank USA, N.A.

JPMorgan Chase Bank, N.A.

KeyBank National Association

PNC Bank, National Association

Standard Chartered Bank

U.S. Bank National Association

UMB Bank, n.a.

Wachovia Bank, National Association

 

  

  

 

  

SCHEDULE 3.06

Disclosed Matters

None.

 

  

  

 

  

SCHEDULE 3.12

Material Subsidiaries

	
             Material Subsidiary

	
Jurisdiction of Organization

	
             J. C. Penney Corporation, Inc.

	
                  Delaware

	
             JCP Real Estate Holdings, Inc.

	
                  Delaware

	
             J. C. Penney Properties, Inc.

	
                  Delaware

 

  

  

 

  

SCHEDULE 6.01

Existing Indebtedness

	
 

 

Name of Issuer*

	
 

 

Title of Securities of Issuer

	
Amount of Such

Securities Outstanding

(in millions)

	
J. C. Penney Corporation, Inc.

	
5.75%   Senior Notes Due 2018

	
$300.0

	
J. C. Penney Corporation, Inc.

	
6.375% Senior Notes Due 2036

	
  700.0

	
J. C. Penney Corporation, Inc.

	
6.875% Medium-Term Notes Due 2015

	
  200.0

	
J. C. Penney Corporation, Inc.

	
6.9%     Notes Due 2026

	
      2.0

	
J. C. Penney Corporation, Inc.

	
7.125% Debentures Due 2023

	
  255.0

	
J. C. Penney Corporation, Inc.

	
7.4%     Debentures Due 2037

	
  326.0

	
J. C. Penney Corporation, Inc.

	
7.625% Notes Due 2097

	
  500.0

	
J. C. Penney Corporation, Inc.

	
7.65%   Debentures Due 2016

	
  200.0

	
J. C. Penney Corporation, Inc.

	
7.95%   Debentures Due 2017

	
  285.0

	
J. C. Penney Corporation, Inc.

	
8.0%     Notes Due 2010

	
  506.0

	
J. C. Penney Corporation, Inc.

	
9.0%     Notes Due 2012

	
  230.0

	
    Total

	  	
             $3,504.0

	  	  	  
	
*J. C. Penney Company, Inc. is a co-obligor (or guarantor, as appropriate) for these outstanding debt securities.

	  	  	  
	
Other Debt:

	  	  
	
Capital lease obligations

	  	
             $       1.0

Existing Letters of Credit outstanding under the Existing Credit Agreement that will become Letters of Credit outstanding hereunder on the Effective Date.

  

  

 

  

SCHEDULE 6.02

Existing Liens

	
Capital lease obligations

	
$1.0 million

	  	  

 

  

  

 

  

SCHEDULE 6.04

Existing Investments

	
JCP Realty, Inc. and its subsidiaries

	
100% of common stock

	
Leveraged lease investments

	
$140.0 million (as of  Feb. 2009)

 

  

  

 

  

SCHEDULE 6.08

Existing Restrictions

	
1.  

	
Restrictions which appear in the Existing Indentures as they are defined in the 

Credit Agreement.

	
2.  

	
Restrictions which appear in JCPenney leases which prevent the use of that leasehold interest 

itself as security for any obligation.

 

  

  

 

  

EXHIBIT A

[FORM OF]

 

ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit, guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

	
  

	
1.

	
Assignor:

	 

 

	
  

	
2.

	
Assignee:

	 

	
  

	
[and is an Affiliate/Approved Fund of [Identify Lender]]1

 

	
  

	
3.

	
Borrowers: J.C. Penney Corporation, Inc. and each Borrowing Subsidiary.

	 

 

1 Select as applicable

 

  

  

 

  

2

 

	
  

	
4.

	
Administrative Agent: JPMorgan Chase Bank, N.A., as the Administrative Agent under the Credit Agreement.

 

	
  

	
5.

	
Credit Agreement:  The Credit Agreement dated as of April [●], 2009 among J.C. Penney Company, Inc., J.C. Penney Corporation, Inc., J.C. Penney Purchasing Corporation, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

	
  

	
6.

	
Assigned Interest:

 

	
Facility Assigned2

	
Aggregate Amount of Commitment/Loans for all Lenders

	
Amount of Commitment/Loans Assigned

	
Percentage Assigned of Commitment/ Loans3

	  	
$

	
$

	
%

	  	
$

	
$

	
%

	  	
$

	
$

	
%

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

 

 

 

2 Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g. “Revolving Commitment”, “Revolving Loan”, “Swingline Loan”, etc.)

 

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

thereunder.

  

  

 

  

3

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

 

 

ASSIGNOR [NAME OF ASSIGNOR],

 

 

by                                                     

Title:

 

ASSIGNEE [NAME OF ASSIGNEE],

 

 

by                                                    

Title:

 

 

Consented to:

 

J.C. PENNEY CORPORATION, INC.,

 

 

by                                                    

Title:

 

Consented to and Accepted:

 

JPMORGAN CHASE BANK, N.A., as Administrative Agent,

 

by                                                    

Title:

 

 

  

  

 

  

ANNEX 1

J.C. PENNEY COMPANY, INC.

J.C. PENNEY CORPORATION, INC.

J.C. PENNEY PURCHASING CORPORATION

CREDIT AGREEMENT

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.  Representations and Warranties.

 

1.1  Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other agreement, instrument or document related thereto (each, a “Loan Document”), (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

1.2.  Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to this Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the 

 

  

  

 

  

obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

2.  Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

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

 

  

  

 

  

EXHIBIT B-1

[FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO LOAN PARTIES]

April 8, 2009

JPMorgan Chase Bank, N.A.,

as administrative agent on behalf of the lenders referred to below,

270 Park Avenue,

New York, New York 10017.

Each of the lenders listed on the signature pages

of the Credit Agreement and referred to below.

Ladies and Gentlemen:

We have acted as special New York counsel to J.C. Penney Company, Inc. ("JCPenney") in connection with (i) the Credit Agreement, dated as of April 8, 2009 (the "Credit Agreement"), among JCPenney, J.C. Penney Corporation, Inc. ("Parent Borrower"), and J.C. Penney Purchasing Corporation ("Purchasing"), JPMorgan Chase Bank, N.A., as administrative agent (the "Administrative Agent"), Wachovia Bank, National Association, as LC Agent, and each of the lenders and arrangers listed on the signature pages thereof, and (ii) the Guarantee and Collateral Agreement dated as of April 8, 2009 (the "Collateral Agreement"), among JCPenney, Parent Borrower, Purchaser and the subsidiaries of J. C. Penney Company, Inc. identified therein (the "Guarantors"), and the Administrative Agent.

In our capacity as special New York counsel, we have examined executed counterparts of each of the following documents:

(a) the Credit Agreement;

(b) the Collateral Agreement;

(c) the Perfection Certificate, dated as of April 8, 2009, as executed by Robert B. 

Cavanaugh, executive vice president and chief financial officer of JCPenney;

  

  

 

  

JPMorgan Chase, N.A.

-2-

Each of the lenders listed on the signature pages

of the Loan Agreement

(d) the Indenture, dated as of October 1, 1982 as supplemented by the First Supplemental Indenture dated as of March 15, 1983, the Second Supplemental Indenture dated as of May 1, 1984, the Third Supplemental Indenture dated as of March 7, 1986, the Fourth Supplemental Indenture dated as of June 7, 1991 and the Fifth Supplemental Indenture dated as of January 27, 2002 (the "1982 Indenture"), between the Parent Borrower and U.S. Bank National Association (successor to Bank of America National Trust and Savings Association), as Trustee;

(e) the Indenture, dated as of April 1, 1994 and as supplemented by the First Supplemental Indenture dated as of January 27, 2002, and the Second Supplemental Indenture dated as of July 26, 2002 (the "1994 Indenture" and, together with the 1982 Indenture, the "Indentures"), between the Parent Borrower and U.S. Bank National Association (successor to Bank of America National Trust and Savings Association), as Trustee; and

(f) such certificates and other documents, and such questions of law, as we have considered necessary or appropriate for the purposes of this opinion.

Upon the basis of such examination, it is our opinion that:

	
  (1)    

	
Each of the Credit Agreement and the Collateral Agreement constitutes the valid and legally binding obligation of each of JCPenney, Parent Borrower, Purchasing and the Guarantors party thereto, enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles.

	
  (2)    

	
No consents, authorizations or approvals of, or filings or registrations with, governmental authorities are required under the Federal laws of the United States or the laws of the State of New York for the execution or delivery of the Credit Agreement or the Collateral Agreement by JCPenney, Parent Borrower, Purchasing or the Guarantors, or the performance by such parties of their respective obligations thereunder, provided, however, that insofar as performance by such parties of their respective obligations is concerned, we express no opinion as to bankruptcy, insolvency,

  

  

 

  

JPMorgan Chase, N.A.

-3-

Each of the lenders listed on the signature pages

of the Loan Agreement

fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights.

	
  (3)     

	
Neither the execution nor delivery of the Credit Agreement or the Collateral Agreement by JCPenney, Parent Borrower, Purchasing or the Guarantors, nor the performance by such parties of their respective obligations thereunder, in accordance with the terms thereof, will violate any Federal law of the United States or laws of the State of New York applicable to such party; provided, however, that we express no opinion with respect to Federal or state securities laws, other antifraud laws, fraudulent transfer law and laws that restrict transactions between United States persons and citizens or residents of certain foreign countries; and provided, further, that insofar as performance by such parties of their respective obligations is concerned, we express no opinion as to bankruptcy, insolvency, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights.

	
  (4)      

	
The Parent Borrower is not an "investment company" as defined in the Investment Company Act of 1940, as amended.

	
  (5)      

	
Neither the execution nor delivery of the Credit Agreement or the Collateral Agreement by JCPenney, Parent Borrower, Purchasing or the Guarantors, nor the performance by such parties of their respective obligations thereunder, in accordance with the terms thereof, will constitute a default under the 1982 Indenture or the 1994 Indenture so long as JCPenney is at the time of, and after giving effect to, the incurrence of any loan or guarantee pursuant to the Credit Agreement or the Collateral Agreement in compliance with the covenants set forth in Sections 5.10 and 5.11 of the 1982 Indenture.

	
  (6)     

	
Upon the giving of value by the Lenders (as defined in the Credit Agreement), the Collateral Agreement is effective under the Uniform Commercial Code of the State of New York as in effect on the date hereof (the "New York UCC"), where applicable, to create in favor of the Secured Parties (as defined in the Collateral

  

  

 

  

JPMorgan Chase, N.A.

-4-

Each of the lenders listed on the signature pages

of the Loan Agreement

Agreement) a security interest (the ''New York Security Interest") in the right, title and interest of each Grantor (as defined in the Collateral Agreement), if any, in the applicable collateral described in the Collateral Agreement (the ''New York Collateral").

	
  (7)     

	
Upon filing of a UCC-1 financing statement with the New York Secretary of State, the New York Security Interest in that portion of the New York Collateral in which a security interest may be perfected by filing a UCC-1 financing statement under the New York UCC, where applicable, will be perfected.

	
  (8)     

	
Upon the giving of value by the Lenders (as defined in the Credit Agreement), the Collateral Agreement is effective under the Uniform Commercial Code of the State of Delaware as in effect on the date hereof (the "Delaware UCC"), where applicable, to create in favor of the Secured Parties (as defined in the Collateral Agreement) a security interest (the "Delaware Security Interest") in the right, title and interest of each Grantor (as defined in the Collateral Agreement), if any, in the applicable collateral described in the Collateral Agreement (the "Delaware Collateral").

	
  (9)     

	
Upon filing of a UCC-1 financing statement with the Delaware Secretary of State, the Delaware Security Interest in that portion of the Collateral in which a security interest may be perfected by filing a UCC-1 financing statement under the Delaware UCC, where applicable, will be perfected.

We express no opinion as to:

(i) any provision of any agreement referred to in paragraph (1) purporting to provide indemnification to any person to the extent inconsistent with public policy or otherwise contrary to law;

(ii) the security interest purported to be granted for the benefit of the Secured Parties (as defined in the Collateral Agreement) in the collateral referred to in paragraph (6) or paragraph (8) to the extent such property is excluded form the scope of Article 9 of the New York UCC or the Delaware UCC, in each case pursuant to Section 9-109 thereof;

  

  

 

  

JPMorgan Chase, N.A.

-5-

Each of the lenders listed on the signature pages

of the Loan Agreement

(iii) the priority of any security interest in or to any of the collateral and, other than as specifically set forth in paragraph (7) or paragraph (9), the creation, attachment, perfection, effect of perfection or nonperfection of any security interest in or to any collateral or any other property;

 

(iv) the right, title and interest in any of the collateral of any person granting a security interest therein;

 

(v) the accuracy of the description of the collateral contained in the Collateral Agreement.

We note that provisions in the Credit Agreement or the Collateral Agreement that permit parties to take action or make determinations may be subject to a requirement that such action be taken or such determinations be made on a reasonable basis and in good faith.

We also note that:

A.     In the case of property that becomes collateral after the date hereof, (i) the security interests therein will not attach or be enforceable until the debtor or other grantor has rights in such property, (ii) Section 552 of the Bankruptcy Code of the United States limits the extent to which property acquired by a debtor or other grantor after the commencement of a case under the Bankruptcy Code of the United States may be subject to a security interest arising from a security agreement entered into by a debtor before the commencement of such case and (iii) the acquisition after the initial incurrence of any loan or guarantee pursuant to the Credit Agreement or the Collateral Agreement, of any interest in any property that becomes subject to a security interest created by the Collateral Agreement may constitute a voidable preference under Section 547 of the Bankruptcy Code of the United States.

B.    Perfection of the security interests referred to in paragraphs (7) and (9) generally will be terminated or will become unperfected under the circumstances described in Sections 9-312, 9-314, and 9-316 of the New York UCC and, with respect to proceeds, Section 9-315 of the New York UCC or comparable provisions of the Delaware UCC, unless appropriate action is taken as provided therein.

C.    A filed financing statement will become ineffective to perfect the security interests referred to in paragraphs (7) and (9) to be perfected by filing a financing

  

  

 

  

JPMorgan Chase, N.A.

-6-

Each of the lenders listed on the signature pages

of the Loan Agreement

statement under the circumstances described in Sections 9-315(e), 9-507, 9-508, 9-510, 9-512,9-513,9-515 and 9-516 of the New York UCC or comparable provisions of the Delaware UCC.

D.    Certain remedial provisions the Collateral Agreement (A) to the extent affecting the obligations of an account debtor, may be subject to the rights of such account debtor, the terms of the contracts with such account debtor and any claims or defenses of such account debtor arising under or outside such contracts and (B) may be unenforceable in whole or in part under applicable law, provided that the inclusion of such provisions does not, in our opinion (but subject to the other comments and qualifications set forth in this opinion letter), make the remedies and procedures that will be afforded to the Lenders (as defined in the Credit Agreement) inadequate for the practical realization of the benefits purported to be provided to Lenders (as defined in the Credit Agreement) by the Collateral Agreement.

E.    The foregoing opinion is limited to the Federal laws of the United States and the laws of the State of New York. Our opinions in paragraphs (6) and (7) are limited to Article 9 New York UCC and in the case of paragraphs (8) and (9) to Article 9 of the Delaware UCC. With your approval, in connection with the opinions in paragraphs (8) and (9), we have reviewed and relied solely upon the official compilation of the Delaware UCC, Title 6 of the Delaware Code, and our general familiarity with the Uniform Commercial Code in effect in other jurisdictions, and we have not reviewed and do not purport to be expert in Delaware commercial law more generally.

F.   In addition, with your approval, we have relied as to certain matters upon information obtained from public officials, officers of JCPenney and other sources believed by us to be responsible, including with respect to the absence of defaults under the Credit Agreement, the Collateral Agreement, the 1982 Indenture and the 1994 Indenture. We have assumed, without independent verification, that each of the parties to the Credit Agreement and the Collateral Agreement is dully incorporated and is an existing corporation in good standing under the laws of the jurisdiction of its incorporation, that the Credit Agreement and the Collateral Agreement have been duly authorized, executed and delivered by each of the parties thereto, and that the signatures on all documents examined by us are genuine, assumptions which we have not independently verified. With certain matters, we note that you have received the opinion of Janet L. Dhillon, executive vice president and general counsel for JCPenney.

  

  

 

  

JPMorgan Chase, N.A.

-7-

Each of the lenders listed on the signature pages

of the Loan Agreement

This opinion is delivered pursuant to Section 4.01(b) of the Credit Agreement. This opinion is furnished by us to you and is solely for your benefit and is not to be made available to, nor may it be relied upon by, any other person, firm or entity.

Very truly yours,

 

  

  

 

  

EXHIBIT B-2

[FORM OF OPINION OF GENERAL COUNSEL]

 

April 8, 2009

To the Issuing Banks and Lenders listed on Schedule A hereto

and to JPMorgan Chase Bank, N.A., as Administrative Agent

for such Issuing Banks and Lenders

RE:           Credit Agreement of J. C. Penney Company, Inc., J. C. Penney Corporation, Inc., 

J. C. Penney Purchasing Corporation and the other Material

Subsidiaries referred to below

Ladies and Gentlemen:

As the Executive Vice President, General Counsel and Secretary of J. C. Penney Company, Inc., a Delaware corporation (“JCPenney”) and J. C. Penney Corporation, Inc., a Delaware corporation (the “Parent Borrower”) and as General Counsel of J. C. Penney Purchasing Corporation, a New York corporation (“Purchasing” and, together with JCPenney, the Parent Borrower and the other Subsidiaries of JCPenney named on Schedule I hereto, the “Loan Parties”), I have been asked to render an opinion pursuant to Section 4.01(b) of the Credit Agreement dated as of April 8, 2009 (the “Credit Agreement”) among the Loan Parties and each of you.  Capitalized terms not otherwise defined in this opinion letter have the meanings specified in the Credit Agreement.

In rendering the opinions set forth below, I have examined originals, photostatic, or certified copies of the Credit Agreement, the Collateral Agreement, respective corporate records and documents of the Loan Parties, copies of public documents, certificates of the officers or representatives of the Loan Parties, and such other instruments and documents, and have made such inquiries, as I have deemed necessary as a basis for such opinions.  In making such examinations, I have assumed with your consent the genuineness of all signatures (other than the signatures of the Loan Parties) and the authenticity of all documents submitted to me as originals, the conformity to original documents of all documents submitted to me as certified or photostatic copies, and the authenticity of the originals of such latter documents.  As to questions of fact material to such opinions, to the extent I deemed necessary, I have relied upon the representations and warranties of the Loan Parties made in the Credit Agreement and upon certificates of the officers of the Loan Parties.

Based upon the foregoing I am of the opinion that:

1. Each of the Loan Parties has been duly incorporated and is validly existing and in good standing under the laws of the States of Delaware and New York, as the case may be, and is duly qualified as a foreign corporation and in good standing under the laws of each jurisdiction where the failure to so qualify would have a Material Adverse Effect.  Each of the Loan Parties has the requisite corporate power and authority to own, 

 

  

  

 

  

pledge, and operate its properties and assets, to lease the property it operates under lease, and to conduct its business as now conducted.

2. The execution, delivery and performance by the Loan Parties of the Credit Agreement and the Collateral Agreement and the consummation of the Transactions thereunder (i) are within the corporate power of each of the Loan Parties; (ii) have been duly authorized by each of the Loan Parties by all necessary corporate action; (iii) are not in contravention of any Loan Party’s certificate of incorporation or bylaws; (iv) do not conflict with or result in the breach of, or constitute a default under, the material agreements or other instruments of any of the Loan Parties; and (v) do not result in the creation or imposition of any Lien upon any of the property or assets of any of the Loan Parties other than any Lien created by the Collateral Agreement.

3. The Credit Agreement and the Collateral Agreement have been duly executed and delivered by each Loan Party that is party thereto.

4. To the best of my knowledge after due inquiry, no litigation by or before any Governmental Authority is now pending or threatened against any Loan Party (i) which involves the Credit Agreement or the issuance of Letters of Credit under the Credit Agreement or (ii) as to which there is a reasonable possibility of an adverse determination and which, if adversely determined, would, individually or in the aggregate, result in a Material Adverse Effect.

With respect to the opinion in paragraph 2(iv), I express no opinion with respect to any conflict with, breach of, or default under the Indenture, dated as of October 1, 1982 as supplemented by the First Supplemental Indenture dated as of March 15, 1983, the Second Supplemental Indenture dated as of May 1, 1984, the Third Supplemental Indenture dated as of March 7, 1986, the Fourth Supplemental Indenture dated as of June 7, 1991 and the Fifth Supplemental Indenture dated as of January 27, 2002 between the Parent Borrower and U.S. Bank National Association (successor to Bank of America National Trust and Savings Association), as Trustee, or  the Indenture, dated as of April 1, 1994 and as supplemented by the First Supplemental Indenture dated as of January 27, 2002, and the Second Supplemental Indenture dated as of July 26, 2002 between the Parent Borrower and U.S. Bank National Association (successor to Bank of America National Trust and Savings Association), as Trustee.

The opinions expressed herein are limited to the laws of the State of Delaware with respect to the opinions in paragraph 1 (except as to due qualification as a foreign corporation and good standing under the laws of other jurisdictions and except as to due incorporation and valid existence of Purchasing), and clauses (i), (ii), and (iii) of paragraph 2 (except as such clauses relate to Purchasing).  The other opinions expressed are limited to the laws of the State of New York and the laws of the United States.  I do not express any opinion herein concerning any laws of any other jurisdiction.  A copy of this opinion letter may be delivered by any of you to any Person that becomes an Issuing Bank or Lender in accordance with the provisions of the Credit Agreement.  Any such Issuing Bank or Lender may rely on the opinions expressed above as if this opinion letter 

2

  

  

 

  

were addressed and delivered to such Issuing Bank or Lender on the date hereof.  The opinion is furnished to you in connection with the transactions contemplated by the Credit Agreement, and except as otherwise provided herein may not be relied upon by any other person, firm, or corporation for any purpose or by you in any other context without my prior written consent.

This opinion letter speaks only as of the date hereof.  I expressly disclaim any responsibility to advise you or any other Issuing Bank or Lender who is permitted to rely on the opinions expressed herein as specified in the next preceding paragraph of any development or circumstance of any kind including any change in law or fact that may occur after the date of this opinion letter even though such development, circumstance or change may affect the legal analysis, a legal conclusion or any other matter set forth in or relating to this opinion letter.  Accordingly, any Issuing Bank or Lender relying on this opinion letter at any time should seek advice of its counsel as to the proper application of this opinion letter at such time.

Very truly yours,

Janet L. Dhillon

Executive Vice President

General Counsel and Secretary

 

 

 

3

 

  

  

 

  

Schedule A

Addressees

JPMorgan Chase Bank, N. A.

Wachovia Bank, National Association

Bank of America, N.A.

Barclays Bank PLC

Compass Bank

HSBC Bank USA, N.A.

U.S. Bank National Association

Bank of New York Mellon

Standard Chartered Bank

State Street Bank and Trust Company

UMB Bank, n.a.

KeyBank National Association

PNC Bank, National Association

Union Bank, N.A.

Banco Popular de Puerto Rico

The Northern Trust Company

Citibank, N.A.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Capital One, N.A.

Chang Hwa Commercial Bank, Ltd.

  

  

 

  

Schedule I

Subsidiary Loan Parties

JCP Real Estate Holdings, Inc.

J. C. Penney Properties, Inc.

 

  

 

 

  

  

 

  

 

EXHIBIT C

 

FORM OF GUARANTEE AND COLLATERAL AGREEMENT

 

dated as of

 

April [●], 2009,

 

among

 

J. C. PENNEY COMPANY, INC.,

J. C. PENNEY CORPORATION, INC.,

J. C. PENNEY PURCHASING CORPORATION,

the Subsidiaries of J. C. Penney Company, Inc.

identified herein,

 

and

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

 

 

 

 

 

 

	 	 Table of Contents	 
	 	 	 Page
	 	
ARTICLE I 

 Definitions

 

	 
	 SECTION 1.01.	Credit Agreement	 1
	 SECTION 1.02.	Other Defined Terms	 1
	 	
 

 ARTICLE II

Guarantee

 

	 
	 SECTION 2.01.	Guarantee 	 3
	 SECTION 2.02.	Guarantee of Payment; Continuing Guarantee	 3
	 SECTION 2.03.	No Limitations, Etc.	 3
	 SECTION 2.04.  	Reinstatement 	 4
	 SECTION 2.05.	Agreement To Pay; Subrogation	 4
	 SECTION 2.06.	Information	 5
	 	
 

ARTICLE III

Security Interest

 

	 
	 SECTION 3.01.	Security Interest 	 5
	 SECTION 3.02. 	Representations and Warranties	 6
	 SECTION 3.03. 	Covenants	 7
	 	
 

ARTICLE IV

Remedies

 

	 
	 SECTION 4.01.	Remedies upon Default 	 9
	 SECTION 4.02. 	Application of Proceeds 	 10
	 	
 

ARTICLE V

Indemnity, Subrogation and Subordination

 

	 
	 SECTION 5.01. 	Indemnity and Subrogation	 11
	 SECTION 5.02.	Contribution and Subrogation	 11
	 SECTION 5.03. 	Subordination 	 12
	 	
 

ARTICLE VI

Miscellaneous

	 
	 	 	 

 

 

 

 

 

 

 

 

	 SECTION 6.01. 	Notices	 12
	 SECTION 6.02. 	Rights Absolute 	 12
	 SECTION 6.03. 	Survival of Agreement 	 12
	 SECTION 6.04. 	Binding Effect; Several Agreement	 13
	 SECTION 6.05.	Successors and Assigns	 13
	 SECTION 6.06. 	Administrative Agent’s Fees and Expenses; Indemnification	 13
	 SECTION 6.07.	Administrative Agent Appointed Attorney-in-Fact	 14
	 SECTION 6.08.	Applicable Law	 15
	 SECTION 6.09. 	Waivers; Amendment 	 15
	 SECTION 6.10.	WAIVER OF JURY TRIAL 	 15
	 SECTION 6.11.	Severability 	 16
	 SECTION 6.12. 	Counterparts	 16
	 SECTION 6.13. 	Headings	 16
	 SECTION 6.14.  	Jurisdiction; Consent to Service of Process	 16
	 SECTION 6.15. 	Termination or Release	 17
	 SECTION 6.16. 	Additional Guarantors	 17
	 SECTION 6.17.	Additional Grantors	 18
	 SECTION 6.18.	Right of Setoff 	 18
	 	 	 
	 SCHEDULE I 	Subsidiary Grantors	 
	 SCHEDULE II  	Subsidiary Guarantors	 
	 SCHEDULE III  	Insurance Requirements	 
	 	 	 
	 EXHIBIT A 	Form of Guarantee Supplement	 
	 EXHIBIT B   	Form of Grantor Supplement	 
	 EXHIBIT C	Form of Perfection Certificate	 

 

                                    

ii

 

 

 

 

 

GUARANTEE AND COLLATERAL AGREEMENT dated as of April [●], 2009, among J. C. PENNEY COMPANY, INC. (“Holdings”), J. C. PENNEY CORPORATION, INC. (the “Parent Borrower”), J. C. PENNEY PURCHASING CORPORATION (“Purchasing”), the Subsidiaries of J. C. Penney Company, Inc. identified herein and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

 

 

ARTICLE I

 

Definitions

 

SECTION 1.01.  Credit Agreement.  (a)  Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Credit Agreement (as defined herein).  All terms defined in the New York UCC (as defined herein) and not defined in this Agreement have the meanings specified therein; the term “instrument” shall have the meaning specified in Article 9 of the New York UCC.

 

(b) The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Agreement.

 

SECTION 1.02. Other Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

 

“Collateral” has the meaning assigned to such term in Section 3.01.

 

“Credit Agreement” means the Credit Agreement dated as of April [●], 2009, among Holdings, the Parent Borrower, Purchasing, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

“Grantors” means Holdings, the Parent Borrower, Purchasing and the Subsidiary Grantors.

 

“Guarantors” means Holdings, the Parent Borrower, Purchasing and the Subsidiary Guarantors.

 

“Inventory” means all inventory of any Grantor other than consignment inventory.

 

“Loan Document Obligations” means (a) the due and punctual payment by each Borrower and each Account Party of (i) the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by any Borrower or any Account Party under the Credit Agreement in respect of any Letter of 

 

 

 

 

 

Credit, when and as due, including payments in respect of reimbursement of disbursements, interest thereon and obligations to provide cash collateral, and (iii) all other monetary obligations of any Borrower or any Account Party to any of the Secured Parties under the Credit Agreement and each of the other Loan Documents, including obligations to pay fees, expense and reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), (b) the due and punctual performance of all other obligations of each Borrower and each Account Party under or pursuant to the Credit Agreement and each of the other Loan Documents and (c) the due and punctual payment and performance of all the obligations of each other Loan Party under or pursuant to this Agreement and each of the other Loan Documents.

 

“New York UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York.

 

“Obligations” means (a) Loan Document Obligations, (b) the due and punctual payment and performance of all obligations of each Loan Party under each Swap Agreement that (i) is in effect on the Effective Date with a counterparty that is a Lender or an Affiliate of a Lender as of the Effective Date or (ii) is entered into after the Effective Date with any counterparty that is a Lender or an Affiliate of a Lender at the time such Swap Agreement is entered into and (c) the due and punctual payment of all monetary obligations and other liabilities of any Loan Party in respect of overdrafts and related liabilities and obligations arising from or in connection with Treasury Services, to the extent, in the case of clauses (b) and (c) above, the documentation for such obligations specifically provides that such Lender or Affiliate of a Lender is entitled to the benefit of the Security Interest hereunder.

 

“Parties” means the Grantors and the Guarantors.

 

“Perfection Certificate” means a certificate substantially in the form of Exhibit C, completed and supplemented with the schedules and attachments contemplated thereby, and duly executed by a Financial Officer of the Parent Borrower.

 

“Proceeds” has the meaning specified in Section 9-102 of the New York UCC.

 

“Secured Parties” means (a) the Lenders, (b) the Administrative Agent, (c) the LC Agent, (d) the Issuing Banks, (e) each counterparty to any Swap Agreement with a Loan Party the obligations under which constitute Obligations, (f) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document, (g) any Lender to which obligations in respect of Treasury Services are owed and (h) the successors and assigns of each of the foregoing.

 

“Security Interest” has the meaning assigned to such term in Section 3.01.

2

 

 

 

 

“Subsidiary Grantors” means (a) the Subsidiaries identified on Schedule I and (b) each Additional Grantor that becomes a party to this Agreement as contemplated by Section 6.17.

 

“Subsidiary Guarantors” means (a) the Subsidiaries identified on Schedule II and (b) each other Subsidiary that becomes a party to this Agreement as contemplated by Section 6.16.

 

“Subsidiary Parties” means the Subsidiary Grantors and the Subsidiary Guarantors.

 

“Treasury Services” means treasury, depositary or cash management services (including purchasing cards and stored value cards) from, or any automated clearinghouse transfer of funds to, any entity that is a Lender.

 

ARTICLE II

 

Guarantee

 

SECTION 2.01. Guarantee.  Each Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations.  Each Guarantor further agrees that the Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation.  Each of the Guarantors waives presentment to, demand of payment from and protest to any Loan Party of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment.

 

SECTION 2.02. Guarantee of Payment.  Each of the Guarantors further agrees that its guarantee hereunder constitutes a guarantee of payment when due and not of collection, and waives any right to require that any resort be had by the Administrative Agent or any other Secured Party to any security held for the payment of the Obligations or to any balance of any deposit account or credit on the books of the Administrative Agent or any other Secured Party in favor of any Borrower, any Account Party or any other Person.

 

SECTION 2.03. No Limitations, Etc.  (a)  Except for termination of a Guarantor’s obligations hereunder as expressly provided in Section 6.15, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise, other than the defense of payment of such obligations in accordance with the terms thereof.  Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by (i) the failure of the Administrative Agent or any other 

 

3

 

 

 

 

Secured Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or otherwise; (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Agreement; (iii) the release of any security held by the Administrative Agent or any other Secured Party for the Obligations or any of them; (iv) any default, failure or delay, wilful or otherwise, in the performance of the Obligations; or (v) any other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the payment in full in cash of all the Obligations).  Each Guarantor expressly authorizes the Secured Parties to take and hold security for the payment and performance of the Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or substitute any one or more other guarantors or obligors upon or in respect of the Obligations, all without affecting the obligations of any Guarantor (in its capacity as such) hereunder.

 

(b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based on or arising out of any defense of any Loan Party or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any Loan Party, other than the payment in full in cash of all the Obligations.  The Administrative Agent and the other Secured Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with any Loan Party or exercise any other right or remedy available to them against any Loan Party, without affecting or impairing in any way the liability of any Guarantor (in its capacity as such) hereunder except to the extent the Obligations have been paid in full in cash.  To the fullest extent permitted by applicable law, each Guarantor (in its capacity as such) waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against any Loan Party, as the case may be, or any security.

 

SECTION 2.04. Reinstatement.  Each of the Guarantors agrees that its guarantee hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored to any Loan Party by the Administrative Agent or any other Secured Party upon the bankruptcy or reorganization of any Loan Party or otherwise.

 

SECTION 2.05. Agreement To Pay; Subrogation.  In furtherance of the foregoing and not in limitation of any other right that the Administrative Agent or any other Secured Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of any Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for distribution to the applicable Secured Parties in cash the 

 

4

 

 

 

 

amount of such unpaid Obligation.  Upon payment by any Guarantor of any sums to the Administrative Agent as provided above, all rights of such Guarantor against such Loan Party or any other Guarantor arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article V.

 

SECTION 2.06. Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of each Loan Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Administrative Agent or the other Secured Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks.

 

ARTICLE III

 

Security Interest

 

SECTION 3.01. Security Interest.  (a)  As security for the payment or performance, as the case may be, in full of the Obligations, each Grantor hereby assigns and pledges to the Administrative Agent, its successors and assigns, for the ratable benefit of the Secured Parties, and hereby grants to the Administrative Agent, its successors and assigns, for the ratable benefit of the Secured Parties, a security interest (the “Security Interest”) in, all its right, title or interest in or to (i) any and all of the Inventory now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest and (ii) all Proceeds and products of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to the foregoing (collectively, the “Collateral”).

 

(b) Each Grantor hereby irrevocably authorizes the Administrative Agent at any time and from time to time to file in any relevant jurisdiction any initial financing statements with respect to the Collateral or any part thereof and amendments thereto that contain the information required by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the filing of any financing statement or amendment, including whether such Grantor is an organization, the type of organization and any organizational identification number issued to such Grantor.  Each Grantor agrees to provide such information to the Administrative Agent promptly upon request.

 

(c) Each Grantor also ratifies its authorization for the Administrative Agent to file in any relevant jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof.

 

(d) The Security Interest is granted as security only and shall not subject the Administrative Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of any Grantor with respect to or arising out of the Collateral.

 

5

 

 

 

 

 

SECTION 3.02. Representations and Warranties.  The Grantors jointly and severally represent and warrant to the Administrative Agent and the other Secured Parties that:

 

(a) Each Grantor has good and valid rights in and title to the Collateral with respect to which it has purported to grant a Security Interest hereunder and has full power and authority to grant to the Administrative Agent the Security Interest in such Collateral pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other Person other than any consent or approval that has been obtained.

 

(b) The Perfection Certificate has been duly prepared, completed and executed and the information set forth therein, including the exact legal name of each Grantor, is correct and complete as of the Effective Date.  The Uniform Commercial Code financing statements or other appropriate filings, recordings or registrations containing a description of the Collateral that have been prepared by the Administrative Agent based upon the information provided to the Administrative Agent in the Perfection Certificate for filing in each governmental, municipal or other office specified in Schedule 6 to the Perfection Certificate, as modified, delivered, prepared or supplemented from time to time pursuant to the Credit Agreement (or specified by notice from the Parent Borrower to the Administrative Agent after the Effective Date in the case of filings, recordings or registrations required by 

Section 5.03(a) or 5.12 of the Credit Agreement), are all the filings, recordings and registrations that are necessary to establish a legal, valid and perfected security interest in favor of the Administrative Agent (for the ratable benefit of the Secured Parties) in respect of all Collateral in which the Security Interest may be perfected by filing, recording or registration in the United States (or any political subdivision thereof), and no further or subsequent filing, refiling, recording, rerecording, registration or reregistration is necessary in any such jurisdiction, except as provided under applicable law with respect to the filing of continuation statements.

 

(c) The Security Interest constitutes (i) a legal and valid security interest in all the Collateral securing the payment and performance of the Obligations and (ii) subject to the filings described in Section 3.02(b), a perfected security interest in all Collateral in which a security interest may be perfected by filing, recording or registering a financing statement or analogous document in the United States (or any political subdivision thereof) pursuant to the Uniform Commercial Code or other applicable law in such jurisdictions.  The Security Interest is and shall be prior to any other Lien on any of the Collateral, other than Permitted Encumbrances that have priority as a matter of law and Liens expressly permitted pursuant to clause (c) of Section 6.02 of the Credit Agreement.

 

(d) The Collateral is owned by the Grantors free and clear of any Lien, other than Permitted Encumbrances and Liens expressly permitted pursuant to clause (c) of Section 6.02 of the Credit Agreement.  None of the Grantors has filed or consented to the filing of any financing statement or analogous document under the Uniform Commercial Code or any other applicable laws covering any Collateral, which financing statement or analogous document, assignment, security agreement or similar instrument

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is still in effect, except, in each case, for Permitted Encumbrances and Liens expressly permitted pursuant to clause (c) of Section 6.02 of the Credit Agreement.

 

(e) Notwithstanding the foregoing, the representations and warranties set forth in this Section as to perfection and priority of the Security Interest in Proceeds are limited to the extent provided in Section 9-315 of the Uniform Commercial Code.

 

SECTION 3.03. Covenants.  (a)  Each Grantor agrees to maintain, at its own cost and expense, such complete and accurate records with respect to the Collateral owned by it as is consistent with its current practices and in accordance with such prudent and standard practices used in industries that are the same as or similar to those in which such Grantor is engaged, but in any event to include accounting records indicating all payments and proceeds received with respect to any part of the Collateral, and, at such time or times as the Administrative Agent may reasonably request, promptly to prepare and deliver to the Administrative Agent a duly certified schedule or schedules in form and detail reasonably satisfactory to the Administrative Agent showing the identity, amount and location of any and all Inventory.

 

(b) Each Grantor shall, at its own expense, take any and all actions necessary to defend title to the Collateral against all Persons and to defend the Security Interest of the Administrative Agent in the Collateral and the priority thereof against any Lien that is not expressly permitted pursuant to clause (c) of Section 6.02 of the Credit Agreement.

 

(c) Each Grantor agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and take all such actions as the Administrative Agent may from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the payment of any fees and taxes required in connection with the execution and delivery of this Agreement, the granting of the Security Interest and the filing of any financing statements or other documents in connection herewith or therewith.

 

(d) The Administrative Agent and such Persons as the Administrative Agent may reasonably designate shall have the right, upon reasonable prior notice and without disruption of the normal and ordinary conduct of business of Holdings or the Parent Borrower, to inspect the Collateral, all records related thereto (and to make extracts and copies from such records) and the premises upon which any of the Collateral is located, to discuss the Grantors’ affairs with the officers of the Grantors and their independent accountants and to verify under reasonable procedures, in accordance with Section 5.03 of the Credit Agreement, the validity, amount, quality, quantity, value, condition and status of, or any other matter relating to, the Collateral.  The Administrative Agent shall have the absolute right to share any information it gains from such inspection or verification with any Secured Party.

 

(e) At its option, the Administrative Agent may discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time

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levied or placed on the Collateral and not permitted pursuant to Section 6.02 of the Credit Agreement or this Agreement, and may pay for the maintenance and preservation of the Collateral to the extent any Grantor fails to do so as required by the Credit Agreement or this Agreement, and each Grantor jointly and severally agrees to reimburse the Administrative Agent on demand for any payment made or any expense incurred by the Administrative Agent pursuant to the foregoing authorization; provided that nothing in this paragraph shall be interpreted as excusing any Grantor from the performance of, or imposing any obligation on the Administrative Agent or any Secured Party to cure or perform, any covenants or other promises of any Grantor with respect to taxes, assessments, charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the other Loan Documents.

 

(f) Each Grantor shall remain liable to observe and perform all the conditions and obligations to be observed and performed by it under each contract, agreement or instrument relating to the Collateral, all in accordance with the terms and conditions thereof, and each Grantor jointly and severally agrees to indemnify and hold harmless the Administrative Agent and the Secured Parties from and against any and all liability for such performance.

 

(g) None of the Grantors shall (i) make or permit to be made a pledge or hypothecation of the Collateral or (ii) grant any other Lien in respect of the Collateral, except as expressly permitted by the Credit Agreement.  None of the Grantors shall make or permit to be made any transfer of the Collateral, except that, unless and until the Administrative Agent shall notify the Grantors that an Event of Default shall have occurred and be continuing and that during the continuance thereof the Grantors shall not sell, convey, lease, assign, transfer or otherwise dispose of any Collateral (which notice may be given by telephone if promptly confirmed in writing), the Grantors may use and dispose of the Collateral in any lawful manner not inconsistent with the provisions of this Agreement, the Credit Agreement or any other Loan Document; provided that, on or prior to the date of any transfer or any other disposition of Inventory permitted by the Credit Agreement by any Grantor to any Subsidiary, the Parent Borrower shall deliver to the Administrative Agent an Asset Coverage Certificate.

 

(h) The Grantors, at their own expense, shall maintain or cause to be maintained insurance covering physical loss or damage to the Collateral in accordance with the requirements set forth in Schedule III hereto and Section 5.07 of the Credit Agreement.  Each Grantor irrevocably makes, constitutes and appoints the Administrative Agent (and all officers, employees or agents designated by the Administrative Agent) as such Grantor’s true and lawful agent (and attorney-in-fact) for the purpose, during the continuance of an Event of Default, of (i) making, settling and adjusting claims in respect of Collateral under policies of insurance, endorsing the name of such Grantor on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and (ii) making all determinations and decisions with respect thereto.  In the event that any Grantor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating thereto, the Administrative Agent may, without waiving or releasing any obligation or liability of the Grantors hereunder or any Event of Default, in its sole discretion, obtain 

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and maintain such policies of insurance and pay such premium and take any other actions with respect thereto as the Administrative Agent reasonably deems advisable.  All sums disbursed by the Administrative Agent in connection with this paragraph, including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable, upon demand, by the Grantors to the Administrative Agent and shall be additional Obligations secured hereby.

 

ARTICLE IV

 

Remedies

 

SECTION 4.01. Remedies upon Default.  Upon the occurrence and during the continuance of an Event of Default, each Grantor agrees, upon the demand of the Administrative Agent, to make the Collateral available to the Administrative Agent, and it is agreed that the Administrative Agent shall have the right, with or without legal process and with or without prior notice or demand for performance, to take possession of the Collateral and without liability for trespass to enter any premises where the Collateral may be located for the purpose of taking possession of or removing the Collateral and, generally, to exercise any and all rights afforded to a secured party under the Uniform Commercial Code or other applicable law.  Without limiting the generality of the foregoing, each Grantor agrees that the Administrative Agent shall have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of all or any part of the Collateral at a public or private sale, for cash, upon credit or for future delivery as the Administrative Agent shall deem appropriate.  Upon consummation of any such sale the Administrative Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold.  Each such purchaser at any sale of the Collateral shall hold the property sold absolutely, free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by law) all rights of redemption, stay and appraisal which such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.

 

The Administrative Agent shall give the applicable Grantors 10 days’ written notice (which each Grantor agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Administrative Agent’s intention to make any sale of Collateral.  Such notice, in the case of a public sale, shall state the time and place for such sale.  Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Administrative Agent may fix and state in the notice (if any) of such sale.  At any such sale, the Collateral, or any portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Administrative Agent may (in its sole and absolute discretion) determine.  The Administrative Agent shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given.  The Administrative Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, 

 

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without further notice, be made at the time and place to which the same was so adjourned.  In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Administrative Agent until the sale price is paid by the purchaser or purchasers thereof, but the Administrative Agent shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like notice.  At any public (or, to the extent permitted by law, private) sale made pursuant to this Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by law) from any right of redemption, stay, valuation or appraisal on the part of any Grantor (all said rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and may (with the consent of the Administrative Agent) make payment on account thereof by using any Obligation then due and payable to such Secured Party from any Grantor as a credit against the purchase price, and such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any Grantor therefor.  For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the Administrative Agent shall be free to carry out such sale pursuant to such agreement and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Administrative Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Obligations paid in full, in which case any excess proceeds thereof shall be disposed of as set forth in Section 4.02 hereof.  As an alternative to exercising the power of sale herein conferred upon it, the Administrative Agent may proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver.  Any sale pursuant to the provisions of this Section 4.01 shall be deemed to conform to the commercially reasonable standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions.

 

SECTION 4.02. Application of Proceeds.  The Administrative Agent shall apply the proceeds of any collection or sale of Collateral, including any Collateral consisting of cash, as follows:

 

FIRST, to the payment of all costs and expenses incurred by the Administrative Agent in connection with such collection or sale or otherwise in connection with this Agreement, any other Loan Document or any of the Obligations, including all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Administrative Agent hereunder or under any other Loan Document on behalf of any Grantor and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document;

 

SECOND, to the payment in full of the Obligations (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution); and

 

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THIRD, to the Grantors, their successors or assigns, or as a court of competent jurisdiction may otherwise direct.

 

The Administrative Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement.  Upon any sale of Collateral by the Administrative Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Administrative Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Administrative Agent or such officer or be answerable in any way for the misapplication thereof.

 

ARTICLE V

 

Indemnity, Subrogation and Subordination

 

SECTION 5.01. Indemnity and Subrogation.  In addition to all such rights of indemnity and subrogation as the Guarantors may have under applicable law (but subject to Section 5.03), each of the Borrowers and each of the Account Parties agrees that (a) in the event a payment shall be made by any Guarantor under this Agreement in respect of any Obligation of a Borrower or an Account Party, such Borrower or such Account Party (as the case may be) shall indemnify such Guarantor for the full amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment shall have been made to the extent of such payment and (b) in the event any assets of any Grantor shall be sold pursuant to this Agreement to satisfy in whole or in part an Obligation of a Borrower or an Account Party, such Borrower or Account Party (as the case may be) shall indemnify such Grantor in an amount equal to the greater of the book value or the fair market value of the assets so sold.

 

SECTION 5.02. Contribution and Subrogation.  Each Guarantor and Grantor (a “Contributing Party”) agrees (subject to Section 5.03) that, in the event a payment shall be made by any other Guarantor hereunder in respect of any Obligation or assets of any other Grantor (other than Holdings or the Parent Borrower) shall be sold pursuant to this Agreement to satisfy any Obligation of a Borrower or an Account Party  and such other Guarantor or Grantor (the “Claiming Party”) shall not have been fully indemnified by the Borrowers or the Account Parties as provided in Section 5.01, the Contributing Party shall indemnify the Claiming Party in an amount equal to the amount of such payment or the greater of the book value or the fair market value of such assets, as the case may be, in each case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Party on the date hereof and the denominator shall be the aggregate net worth of all the Guarantors and Grantors on the date hereof (or, in the case of any Guarantor or Grantor becoming a party hereto pursuant to Section 6.16 or Section 6.17, respectively, the date of the supplement hereto executed and delivered by such Guarantor or Grantor).  Any Contributing Party making any payment to a Claiming 

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Party pursuant to this Section 5.02 shall (subject to Section 5.03) be subrogated to the rights of such Claiming Party under Section 5.01 to the extent of such payment.

 

SECTION 5.03. Subordination.  (a)  Notwithstanding any provision of this Agreement to the contrary, all rights of the Guarantors and Grantors under Sections 5.01 and 5.02 and all other rights of the Guarantors and Grantors of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the indefeasible payment in full in cash of the Obligations.  No failure on the part of any Borrower, any Account Party or any Guarantor or Grantor to make the payments required by Sections 5.01 and 5.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor or Grantor with respect to its obligations hereunder, and each Guarantor and Grantor shall remain liable for the full amount of the obligations of such Guarantor or Grantor hereunder.

 

(b) Each of the Guarantors and Grantors hereby agrees that all Indebtedness and other monetary obligations owed by it to, or to it by, any other Guarantor, Grantor or any other Subsidiary shall be fully subordinated to the payment in full in cash of the Obligations.

 

ARTICLE VI

 

Miscellaneous

 

SECTION 6.01. Notices.  All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided in Section 9.01 of the Credit Agreement.  All communications and notices hereunder to any Subsidiary Party shall be given to it in care of the Parent Borrower as provided in Section 9.01 of the Credit Agreement.

 

SECTION 6.02. Rights Absolute.  All rights of the Administrative Agent hereunder, the Security Interest and all obligations of each Guarantor and Grantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Obligations, or (d) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Guarantor or Grantor in respect of the Obligations or this Agreement.

 

SECTION 6.03. Survival of Agreement.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in 

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the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the Lenders and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any Lender or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Credit Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under any Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.

 

SECTION 6.04. Binding Effect; Several Agreement.  This Agreement shall become effective as to any Party when a counterpart hereof executed on behalf of such Party shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such Party and the Administrative Agent and their respective permitted successors and assigns, and shall inure to the benefit of such Party, the Administrative Agent and the other Secured Parties and their respective successors and assigns, except that no Party shall have the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any such assignment or transfer shall be void) except as expressly contemplated by this Agreement or the Credit Agreement.  This Agreement shall be construed as a separate agreement with respect to each Party and may be amended, modified, supplemented, waived or released with respect to any Party without the approval of any other Party and without affecting the obligations of any other Party hereunder.

 

SECTION 6.05. Successors and Assigns.  Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of any Guarantor or Grantor or the Administrative Agent that are contained in this Agreement shall bind and inure to the benefit of their respective successors and assigns.

 

SECTION 6.06. Administrative Agent’s Fees and Expenses; Indemnification.  (a)  The parties hereto agree that the Administrative Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in Section 9.03 of the Credit Agreement.

 

(b) Without limitation of its indemnification obligations under the other Loan Documents, each Guarantor and Grantor jointly and severally agrees to indemnify the Administrative Agent and the other Indemnitees (as defined in Section 9.03 of the Credit Agreement) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of, the execution, delivery or performance of this Agreement or any claim, litigation, investigation or proceeding

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relating hereto, or to the Collateral, whether or not 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) arise in connection with any judgment rendered by a court of competent jurisdiction in favor of any Guarantor or Grantor against such Indemnitee, (y) result from the gross negligence or wilful misconduct of such Indemnitee or (z) result from any dispute among the Lenders and the Administrative Agent, or any of them, other than disputes resulting from the fault of any Loan Party.

 

(c) Any such amounts payable as provided hereunder shall be additional Obligations secured hereby.  The provisions of this Section 6.06 shall remain operative and in full force and effect regardless of the termination of this Agreement or any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Administrative Agent or any other Secured Party.  All amounts due under this Section 6.06 shall be payable not later than 30 days after written demand therefor.

 

SECTION 6.07. Administrative Agent Appointed Attorney-in-Fact.  Each Guarantor and Grantor hereby appoints the Administrative Agent the attorney-in-fact of such Guarantor or Grantor during the continuance of an Event of Default for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instrument that the Administrative Agent may reasonably deem necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest.  Without limiting the generality of the foregoing, the Administrative Agent shall have the right, upon the occurrence and during the continuance of an Event of Default, with full power of substitution either in the Administrative Agent’s name or in the name of such Guarantor or Grantor (a) to receive, endorse, assign and/or deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof; (b) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any of the Collateral; (c) to sign the name of any Grantor on any invoice or bill of lading relating to any of the Collateral; (d) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any Collateral; (e) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; and (f) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and completely as though the Administrative Agent were the absolute owner of the Collateral for all purposes; provided that nothing herein contained shall be construed as requiring or obligating the Administrative Agent to make any commitment or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered thereby, other than to exercise commercially reasonable care in the custody and preservation of any Collateral in its possession.  The Administrative Agent and the Parent Borrower

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acknowledge that the exercise of the powers granted to the Administrative Agent herein to deal with or dispose of the Collateral on a basis in keeping with orderly business proceedings designed to preserve the value of the Collateral to customers of the Grantor would be commercially reasonable.

 

SECTION 6.08. Applicable Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of New York.

 

SECTION 6.09. Waivers; Amendment.  (a)  No failure or delay by the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Issuing Banks and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by any Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time.  No notice or demand on any Party in any case shall entitle any Party to any other or further notice or demand in similar or other circumstances.

 

(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 9.02 of the Credit Agreement.

 

SECTION 6.10. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY 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 INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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SECTION 6.11. Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

SECTION 6.12. Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute a single contract (subject to Section 6.04), and shall become effective as provided in Section 6.04.  Delivery of an executed signature page to this Agreement by telecopy or electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 6.13. Headings.  Article and Section headings used herein are for the purpose of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 

SECTION 6.14. Jurisdiction; Consent to Service of Process.  (a)  Each of the Parties hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby 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 or, to the extent permitted by 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 any other Loan Document shall affect any right that the Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Guarantor or Grantor or its respective properties in the courts of any jurisdiction.

 

(b) Each of the Parties hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (a) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(c) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 6.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

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SECTION 6.15. Termination or Release.  (a)  This Agreement, the Guarantees made herein, the Security Interest and all other security interests granted hereby shall terminate when all the Loan Document Obligations have been paid in full and the Lenders have no further commitment to lend under the Credit Agreement, the LC Exposure has been reduced to zero and no Issuing Bank has any further obligations to issue Letters of Credit under the Credit Agreement.

 

(b) A Subsidiary Party shall automatically be released from its obligations hereunder and, in the case of a Subsidiary Party that is a Subsidiary Grantor, the Security Interest in the Collateral of such Subsidiary Grantor shall be automatically released upon the consummation of any transaction not prohibited by the Credit Agreement as a result of which such Subsidiary Party ceases to be a Subsidiary of Holdings; provided that the Required Lenders shall have consented to such transaction (to the extent required by the Credit Agreement) and the terms of such consent did not provide otherwise; provided further that, after giving effect to such release, there is no Default under the Credit Agreement.

 

(c) Upon any sale or other transfer by any Grantor of any Collateral that is not prohibited by the Credit Agreement to any Person that is not a Grantor, or upon the effectiveness of any written consent to the release of the Security Interest granted hereby in any Collateral pursuant to Section 9.02 of the Credit Agreement, the Security Interest in such Collateral shall be automatically released; provided that after giving effect to such release, there is no Default under the Credit Agreement.

 

(d) Notwithstanding anything herein to the contrary, the Security Interest shall be released at any time when (i) Holdings has a Credit Rating of (A) Baa1 with stable outlook or better from Moody’s or (B) BBB+ with stable outlook or better from S&P; provided that if the Credit Ratings are not at the same level, the lower Credit Rating is not more than one notch worse than the higher Credit Rating, (ii) no Default has occurred and is continuing or would result from such release and (iii) the Administrative Agent shall have received a certificate from a Financial Officer of Holdings or the Parent Borrower confirming that the conditions in this paragraph (d) are satisfied.

 

(e) In connection with any termination or release pursuant to paragraph (a), (b), (c) or (d) above, the Administrative Agent shall execute and deliver to any Grantor at such Grantor’s expense, all documents that such Grantor shall reasonably request to evidence such termination or release.  Any execution and delivery of documents pursuant to this Section 6.15 shall be without recourse to or warranty by the Administrative Agent.

 

SECTION 6.16. Additional Guarantors.  (a)  Pursuant to, and to the extent provided in, Section 5.11 of the Credit Agreement, additional Subsidiaries may be required to enter into this Agreement as Guarantors.  Upon execution and delivery by the Administrative Agent and any such Subsidiary of an instrument in the form of Exhibit A hereto, such Subsidiary shall become a Subsidiary Guarantor hereunder with the same force and effect as if originally named as a Subsidiary Guarantor herein.

17

 

 

 

 

(b) In the event of a Permitted Holding Company Reorganization, New Holdco is required to enter in this Agreement as a Guarantor.  Upon execution and delivery by the Administrative Agent and New Holdco of an instrument in form and substance similar to Exhibit A hereto, New Holdco shall become a Guarantor hereunder with the same force and effect as if originally named a Guarantor herein.

 

(c) The execution and delivery of any such instrument described in paragraph (a) or (b) above shall not require the consent of any other party hereto.  The rights and obligations of each party hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantee Party as a party to this Agreement.

 

SECTION 6.17. Additional Grantors.  Pursuant to the terms of the Credit Agreement, Additional Grantors may enter into this Agreement as Subsidiary Grantors.  Upon execution and delivery by the Administrative Agent and any such Additional Grantor of an instrument in the form of Exhibit B hereto, such Additional Grantor shall become an a Subsidiary Grantor hereunder with the same force and effect as if originally named as an Subsidiary Grantor herein.  The execution and delivery of any such instrument shall not require the consent of any other party hereto.  The rights and obligations of each party hereto shall remain in full force and effect notwithstanding the addition of any new Subsidiary Grantor as a party to this Agreement.

 

SECTION 6.18. Right of Setoff.  If an Event of Default shall have occurred and be continuing and the Loans have become due and payable, each Issuing Bank and Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Issuing Bank or Lender or Affiliate to or for the credit or the account of any Guarantor against any of and all the obligations of such Guarantor now or hereafter existing under this Agreement owed to such Issuing Bank or Lender, irrespective of whether or not such Issuing Bank or Lender shall have made any demand under this Agreement and although such obligations may be unmatured.  The rights of each Issuing Bank and Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Issuing Bank or Lender may have.  Any Lender or Issuing Bank exercising its rights under this Section shall give notice thereof to the relevant Guarantor on or prior to the day of the exercise of such rights.

 

[The remainder of this page has been left blank intentionally.]

 

18

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

 

 

 

	
  

	
J. C. PENNEY COMPANY, INC.,

 

by                

           Name: 

           Title: 

               

 

	
  

	
J. C. PENNEY CORPORATION, INC.,

 

by            

      Name: 

      Title: 

 

	
  

	
J. C. PENNEY PURCHASING CORPORATION,

 

by               

      Name: 

      Title: 

 

	
  

	
EACH OF THE SUBSIDIARIES LISTED ON SCHEDULES I AND II HERETO,

 

by               

      Name:

      Title: 

 

	
  

	
JPMORGAN CHASE BANK, N.A., as 

Administrative Agent, 

 

by                

       Name: 

       Title: 

	
  

	
      

       

19

  

 

 

 

 

SCHEDULE I

to the Guarantee and 

Collateral Agreement

 

Subsidiary Grantors

 

[To be provided by JCP]

 

 

 

 

 

 

SCHEDULE II

to the Guarantee and 

Collateral Agreement 

 

Subsidiary Guarantors

 

[To be provided by JCP]

 

 

 

 

 

SCHEDULE III

to the Guarantee and 

Collateral Agreement 

 

 

Insurance Requirements

 

(a)  Each Grantor will maintain (or cause to be maintained on its behalf), with financially sound and reputable insurance companies, insurance with respect to all Inventory constituting Collateral, in such amounts as are customarily maintained by companies in the same or similar business operating in the same or similar locations.

 

(b)  Policies maintained with respect to any Collateral shall be endorsed or otherwise amended to include (i) a lenders’ loss payable clause in favor of the Administrative Agent and providing for losses thereunder to be payable to the Administrative Agent or its designee and (ii) such other provisions as the Administrative Agent may reasonably require from time to time to protect the interests of the Lenders.  Each such policy referred to in this paragraph also shall provide that it shall not be canceled, modified or not renewed (i) by reason of nonpayment of premium except upon not less than 10 days’ prior written notice thereof by the insurer to the Administrative Agent (giving the Administrative Agent the right to cure defaults in the payment of premiums) or (ii) for any other reason except upon not less than 30 days’ prior written notice thereof by the insurer to the Administrative Agent.  Each Grantor shall deliver to the Administrative Agent a copy of a certificate of insurance evidencing the required coverage on or prior to the Effective Date and upon each renewal or replacement of such policies thereafter.

  

  

 

  

EXHIBIT A

to the Guarantee and

Collateral Agreement

 

GUARANTEE SUPPLEMENT NO. __ dated as of [•], to the Guarantee and Collateral Agreement dated as of April [•], 2009, among J. C. PENNEY COMPANY, INC., a Delaware corporation (“Holdings”), J. C. PENNEY CORPORATION, INC., a Delaware corporation (the “Parent Borrower”), J. C. PURCHASING CORPORATION, a New York corporation (“Purchasing”), each subsidiary of Holdings listed on Schedule I thereto (together with Holdings, the Parent Borrower and Purchasing, the “Parties”)), and JPMORGAN CHASE BANK, N.A., (“JPMCB”), as administrative agent (in such capacity, the “Administrative Agent”) for the Secured Parties (as defined therein).

 

A.  Reference is made to the Credit Agreement dated as of April [•], 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Holdings, the Parent Borrower, Purchasing, the lenders from time to time party thereto (the “Lenders”), the Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

B.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the Collateral Agreement referred to therein.

 

C.  The Parties have entered into the Collateral Agreement in order to induce the Lenders to make Loans and the Issuing Banks to issue Letters of Credit.  Section 6.16 of the Collateral Agreement provides that additional Subsidiaries of Holdings may become Subsidiary Guarantors under the Collateral Agreement by execution and delivery of an instrument in the form of this Supplement.  The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Subsidiary Guarantor under the Collateral Agreement in order to induce the Lenders to make additional Loans and the Issuing Banks to issue additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued.

 

Accordingly, the Administrative Agent and the New Subsidiary agree as follows:

 

SECTION 1.  In accordance with Section 6.16 of the Collateral Agreement, the New Subsidiary by its signature below becomes a Subsidiary Guarantor (and accordingly, becomes a Guarantor) under the Collateral Agreement with the same force and effect as if originally named therein as a Guarantor and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Collateral Agreement applicable to it as a Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct on and as of the date hereof.  Each reference to a “Guarantor” in the Collateral Agreement shall be 

 

  

  

 

  

deemed to include the New Subsidiary.  The Collateral Agreement is hereby incorporated herein by reference.

 

SECTION 2.  The New Subsidiary represents and warrants to the Administrative Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.

 

SECTION 3.  This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Supplement shall become effective when (a) the Administrative Agent shall have received a counterpart of this Supplement that bears the signature of the New Subsidiary and (b) the Administrative Agent has executed a counterpart hereof.  Delivery of an executed signature page to this Supplement by facsimile or electronic transmission shall be as effective as delivery of a manually signed counterpart of this Supplement.

 

SECTION 4.  Except as expressly supplemented hereby, the Collateral Agreement shall remain in full force and effect.

 

SECTION 5.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 6.  In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Collateral Agreement shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 7.  All communications and notices hereunder shall be in writing and given as provided in Section 6.01 of the Collateral Agreement.

 

SECTION 8.  The New Subsidiary agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent.

 

 

  

  

 

  

IN WITNESS WHEREOF, the New Subsidiary and the Administrative Agent have duly executed this Supplement to the Collateral Agreement as of the day and year first above written.

 

	  	
[Name Of New Subsidiary],

by 

       Name:

       Title:

 

Legal Name:

Jurisdiction of Formation:

Location of Chief Executive Office:

 

	  	
JPMORGAN CHASE BANK, N.A., as Administrative Agent,

by 

Name:

Title:

 

	  

 

  

  

 

  

EXHIBIT B

to the Guarantee and

Collateral Agreement

 

GRANTOR SUPPLEMENT NO. __ dated as of [•], to the Guarantee and Collateral Agreement dated as of April [•], 2009, among J. C. PENNEY COMPANY, INC., a Delaware corporation (“Holdings”), J. C. PENNEY CORPORATION, INC., a Delaware corporation (the “Parent Borrower”), J. C. PURCHASING CORPORATION, a New York corporation (“Purchasing”), each subsidiary of Holdings listed on Schedule I thereto (together with Holdings, the Parent Borrower and Purchasing, the “Parties”)), and JPMORGAN CHASE BANK, N.A., (“JPMCB”), as administrative agent (in such capacity, the “Administrative Agent”) for the Secured Parties (as defined therein).

 

A.  Reference is made to the Credit Agreement dated as of April [•], 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Holdings, the Parent Borrower, Purchasing, the lenders from time to time party thereto (the “Lenders”), the Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

B.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the Collateral Agreement referred to therein.

 

C.  The Parties have entered into the Collateral Agreement in order to induce the Lenders to make Loans and the Issuing Banks to issue Letters of Credit.  Section 6.17 of the Collateral Agreement provides that Additional Grantors may become Subsidiary Grantors under the Collateral Agreement by execution and delivery of an instrument in the form of this Supplement.  The undersigned Additional Grantor (the “New Subsidiary”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Subsidiary Grantor under the Collateral Agreement in order to induce the Lenders to make additional Loans and the Issuing Banks to issue additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued.

 

Accordingly, the Administrative Agent and the New Subsidiary agree as follows:

 

SECTION 1.  In accordance with Section 6.17 of the Collateral Agreement, the New Subsidiary by its signature below becomes a Subsidiary Grantor (and accordingly, becomes a Grantor) under the Collateral Agreement with the same force and effect as if originally named therein as a Grantor and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Collateral Agreement applicable to it as a Subsidiary Grantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Subsidiary Grantor thereunder are true and correct on and as of the date hereof.  In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in full of the Obligations (as defined in the 

 

 

 

  

 

 

Collateral Agreement), does hereby create and grant to the Administrative Agent, its successors and assigns, for the ratable benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all of the New Subsidiary’s right, title and interest in and to the Collateral set forth on Schedule I attached hereto of the New Subsidiary.  Each reference to a “Grantor” in the Collateral Agreement shall be deemed to include the New Subsidiary.  The Collateral Agreement is hereby incorporated herein by reference.

 

SECTION 2.  The New Subsidiary represents and warrants to the Administrative Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.

 

SECTION 3.  This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Supplement shall become effective when (a) the Administrative Agent shall have received a counterpart of this Supplement that bears the signature of the New Subsidiary and (b) the Administrative Agent has executed a counterpart hereof.  Delivery of an executed signature page to this Supplement by facsimile or electronic transmission shall be as effective as delivery of a manually signed counterpart of this Supplement.

 

SECTION 4.  The New Subsidiary hereby represents and warrants that (a) Schedule II attached hereto is a completed Perfection Certificate in the form of Exhibit C to the Collateral Agreement dated the date hereof and signed by an executive officer or Financial Officer of the New Subsidiary and (b) set forth under its signature hereto is the true and correct legal name of the New Subsidiary, its jurisdiction of formation and the location of its chief executive office.

 

SECTION 5.  Except as expressly supplemented hereby, the Collateral Agreement shall remain in full force and effect.

 

SECTION 6.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7.  In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Collateral Agreement shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

2

 

 

  

 

SECTION 8.  All communications and notices hereunder shall be in writing and given as provided in Section 6.01 of the Collateral Agreement.

 

SECTION 9.  The New Subsidiary agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent.

 

 

 

 

3

  

  

  

  

IN WITNESS WHEREOF, the New Subsidiary and the Administrative Agent have duly executed this Supplement to the Collateral Agreement as of the day and year first above written.

 

	  	
[Name Of New Subsidiary],

by 

       Name:

       Title:

 

Legal Name:

Jurisdiction of Formation:

Location of Chief Executive Office:

 

	  	
JPMORGAN CHASE BANK, N.A., as Administrative Agent,

by 

Name:

Title:

 

	  

 

 

 

4

  

  

  

  

SCHEDULE I

to Grantor Supplement No. ­­__

to the Guarantee and

Collateral Agreement

 

SCHEDULE I

  

  

  

  

SCHEDULE II

to Grantor Supplement No. ­­__

to the Guarantee and

Collateral Agreement

 

SCHEDULE II

  

  

  

  

EXHIBIT C

to the Guarantee and

Collateral Agreement

 

PERFECTION CERTIFICATE

 

Reference is made to the Credit Agreement dated as of April [•], 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among J. C. Penney Company, Inc. (“Holdings”), J. C. Penney Corporation, Inc. (the “Parent Borrower”), J. C. Penney Purchasing Corporation (“Purchasing”), the lenders from time to time party thereto (the “Lenders”), JPMorgan Chase Bank, as administrative agent (the “Administrative Agent”), and Wachovia Bank, National Association, as LC Agent.  Capitalized terms used but not defined herein have the meanings assigned in the Credit Agreement or the Collateral Agreement referred to therein, as applicable.  As used herein the term “Grantors” shall mean Holdings, the Parent Borrower, Purchasing, the Subsidiary Grantors and, to the extent there are any Additional Grantors, such Additional Grantors.

The undersigned, a Financial Officer of the Parent Borrower, hereby certifies to the Administrative Agent and each other Secured Party as follows:

1.           Names.  (a)  The exact legal name of each Grantor, as such name appears in its respective certificate of formation, is as follows:

 

	
Exact Legal Name of Each Grantor

	  
	  
	  
	  

 

(b)  Set forth below is each other legal name each Grantor has had in the past five years, together with the date of the relevant change:

 

	
Grantor

	
Other Legal Name in Past 5 Years

	
Date of Name Change

	  	  	  
	  	  	  
	  	  	  
	  	  	  

 

 

 

  

 

(c)  Except as set forth in Schedule 1, no Grantor has changed its identity or corporate structure in any way within the past five years. Changes in identity or corporate structure would include mergers, consolidations and acquisitions, as well as any change in the form, nature or jurisdiction of corporate organization. If any such change has occurred, include in Schedule 1 the information required by Sections 1 and 2 of this certificate as to each acquiree or constituent party to a merger or consolidation. 

 

(d)  The following is a list of all other names (including trade names or similar appellations) used by each Grantor or any of its divisions or other business units in connection with the conduct of its business or the ownership of its properties at any time during the past five years:

 

	
Grantor

	
Other Name Used

	  	  
	  	  
	  	  
	  	  

 

(e)  Set forth below is the organizational identification number, if any, issued by the jurisdiction of formation of each Grantor:

 

	
Grantor

	
Organizational Identification Number

	  	  
	  	  
	  	  
	  	  

 

(f)  Set forth below is the Federal Taxpayer Identification Number of each Grantor:

 

	
Grantor

	
Federal Taxpayer Identification Number

	  	  
	  	  
	  	  
	  	  

2

 

 

  

 

2.  Current Locations.  (a)  The chief executive office of each Grantor is located at the address set forth opposite its name below:

	
Grantor

	
Mailing Address

	
County

	
State

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

(b) The jurisdiction of formation of each Grantor is set forth opposite its name below:

	
Grantor

	
Jurisdiction

	  	  
	  	  
	  	  
	  	  

(c) Set forth below opposite the name of each Grantor are all the locations where the Grantor maintains any Inventory not identified above:

	
Grantor

	
Mailing Address

	
County

	
State

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

3.  Unusual Transactions.  All Inventory has been acquired by the Grantors in the ordinary course of business.

 

4.  File Search Reports.  File search reports have been obtained from each Uniform Commercial Code filing office identified with respect to each Grantor in Section 2 hereof, and such search reports reflect no liens against any of the Collateral other than those permitted under the Credit Agreement.

 

5.  UCC Filings.  UCC financing statements in substantially the form of Schedule 5 hereto have been prepared for filing in the proper Uniform Commercial Code filing office

3

 

 

  

 

 in the jurisdiction in which each Grantor is organized as set forth with respect to such Grantor in Section 2 hereof.

 

6.  Schedule of Filings.  Attached hereto as Schedule 6 is a schedule setting forth, with respect to the filings described in Section 5 above, each filing and the filing office in which such filing is to be made.

 

 

4

  

  

  

  

IN WITNESS WHEREOF, the undersigned has duly executed this certificate on this _____ day of ______, 2009.

 

J. C. PENNEY CORPORATION, INC.,

 

by

__________________________

Name:

Title:

 

 

 

 

5

  

  

  

  

SCHEDULE 1

Changes in Identity or Corporate Structure Within Past Five Years

  

  

  

  

SCHEDULE 5

UCC Financing Statements

  

  

  

  

SCHEDULE 6

UCC Filings and Filing Offices

  

  

 

  

EXHIBIT D-1

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of April 8, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among J.C. Penney Company, Inc., J.C. Penney Corporation, Inc., J.C. Penney Purchasing Corporation, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

Pursuant to the provisions of Section 2.16(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iii) it is not a ten percent shareholder of any Borrower within the meaning of Code Section 871(h)(3)(B), (iv) it is not a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code and (v) the interest payments in question are not effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent and the Parent Borrower with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Parent Borrower and the Administrative Agent and (2) the undersigned shall have at all times furnished the Parent Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	
[NAME OF LENDER],

	
by

	  	  
	  	
Name:

	  	
Title:

 

 

  

  

 

  

EXHIBIT D-2

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of April 8, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among J.C. Penney Company, Inc., J.C. Penney Corporation, Inc., J.C. Penney Purchasing Corporation, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

Pursuant to the provisions of Section 2.16(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such Loan(s) (as well as any note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iv) none of its partners/members is a ten percent shareholder of any Borrower within the meaning of Code Section 871(h)(3)(B), (v) none of its partners/members is a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent and the Parent Borrower with Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN from each of its partners/members claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Parent Borrower and the Administrative Agent and (2) the undersigned shall have at all times furnished the Parent Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	
[NAME OF LENDER],

	
by

	  	  
	  	
Name:

	  	
Title:

  

  

 

  

EXHIBIT D-3

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of April 8, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among J.C. Penney Company, Inc., J.C. Penney Corporation, Inc., J.C. Penney Purchasing Corporation, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

Pursuant to the provisions of Section 2.16(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iii) it is not a ten percent shareholder of any Borrower within the meaning of Code Section 871(h)(3)(B), (iv) it is not a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code, and (v) the interest payments in question are not effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Foreign Lender with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Foreign Lender in writing and (2) the undersigned shall have at all times furnished such Foreign Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	
[NAME OF PARTICIPANT],

	
by

	  	  
	  	
Name:

	  	
Title:

 

  

  

 

  

EXHIBIT D-4

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Credit Agreement dated as of April 8, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among J.C. Penney Company, Inc., J.C. Penney Corporation, Inc., J.C. Penney Purchasing Corporation, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Wachovia Bank, National Association, as LC Agent.

 

Pursuant to the provisions of Section 2.16(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the “Code”), (iv) none of its partners/members is a ten percent shareholder of any Borrower within the meaning of Code Section 871(h)(3)(B), (v) none of its partners/members is a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Foreign Lender with Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN from each of its partners/members claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Foreign Lender and (2) the undersigned shall have at all times furnished such Foreign Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	
[NAME OF PARTICIPANT],

	
by

	  	  
	  	
Name:

	  	
Title:ex10-7.htm

	  

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

 

 

BANK OF AMERICA, N.A.

 

As Lender

 

And

 

AEROPOSTALE, INC.

 

The Borrower

 

 

November 13, 2007

 

 

  

  

  

TABLE OF CONTENTS

 

 

 

 

	 	 Article 1 - 	 Definitions:	 -1-
	 	 	 	 
	 	 Article 2 - 	 The Revolving Credit: 	 -23-
	 	 	 	 
	 	 2-1.	 Establishment of  Revolving Credit. 	 -23-
	 	 2-2.	 Intentionally Omitted. 	 -23-
	 	 2-3.	 Intentionally Omitted. 	 -23-
	 	 2-4.	 Risks of Value of Collateral 	 -23-
	 	 2-5.	 Loan Requests. 	 -23-
	 	 2-6.	 Making of Loans Under Revolving Credit.	 -25-
	 	 2-7.	 The Loan Account. 	 -26-
	 	 2-8.	 The Revolving Credit Notes 	 -27-
	 	 2-9.	 Payment of The Loan Account.	 -27-
	 	 2-10.	 Interest Rates. 	 -28-
	 	 2-11.	 Additional Fees. 	 -28-
	 	 2-12.	 Intentionally Omitted. 	 -29-
	 	 2-13.	 Line (Unused Fee). 	 -29-
	 	 2-14.	 Intentionally Omitted 	 -29-
	 	 2-15.	 Concerning Fees. 	 -29-
	 	 2-16.	 Lender’s Discretion.	 -29-
	 	 2-17.	 Procedures For Issuance of L/C’s.	 -29-
	 	 2-18.	 Fees For L/C’s.	 -30-
	 	 2-19.	 Cash Collateralization of L/Cs.	 -31-
	 	 2-20.	 Concerning L/C’s.	 -31-
	 	 2-21.	 Changed Circumstances.	 -33-
	 	 2-22.	 Increased Costs 	 -34-
	 	 2-23.	 Lender’s Commitments. 	 -35-
	 	 	 	 
	 	 Article 3 -	 Conditions Precedent:	 -36-
	 	 	 	 
	 	 3-2.	 Corporate Due Diligence.	 -36-
	 	 3-3. 	 Opinion 	 -36-
	 	 3-4. 	 Additional Documents 	 -36-
	 	3-5.	 Officers’ Certificates 	 -36-
	 	 3-6.	 Representations and Warranties 	  -37-
	 	 3-7.	 Borrowing Base Certificate 	  -37-
	 	 3-8.	 All Fees and Expenses Paid 	  -37-
	 	 3-9.	 Financial Projections 	  -37-
	 	  3-10.	 Borrower’s Assets 	  -37-
	 	  3-11.	 Lien Search 	  -37-
	 	  3-12.	 Perfection of Collateral 	 -37-
	 	  3-13.	 Insurance 	 -37-
	 	  3-14.	 No Suspension Event 	 -38-
	 	  3-15.	 No Adverse Change 	 -38-
	 	  3-16.	 Execution and Delivery of Agreement 	 -38-

 

   

  

ii

  

 

 

 

	 	 Article 4 - 	 General Representations, Covenants and Warranties:	 -38-
	 	 	 	 
	 	 4-1. 	 Payment and Performance of Liabilities 	 -38-
	 	 4-2.	 Due Organization - Corporate Authorization - No Conflicts.	 -38-
	 	 4-3.	 Trade Names.	 -39-
	 	 4-4.	 Intellectual Property.	 -39-
	 	 4-5.	 Locations.	 -40-
	 	 4-6.	 Title to Assets.	 -41-
	 	 4-7.	 Indebtedness 	 -42-
	 	 4-8.	 Insurance Policies. 	 -43-
	 	 4-9.	 Licenses 	 -43-
	 	 4-10.	 Leases 	 -44-
	 	 4-11.	 Requirements of Law 	 -44-
	 	 4-12.	 Maintain Properties 	 -44-
	 	 4-13.	 Pay Taxes/Tax Shelter Regulations.	 -45-
	 	 4-14.	 No Margin Stock 	 -46-
	 	 4-15.	 ERISA 	 -46-
	 	 4-16.	 Hazardous Materials.	 -46-
	 	 4-17.	 Litigation 	 -47-
	 	 4-18.	 Dividends or Investments 	 -47-
	 	 4-19.	 Loans 	 -48-
	 	 4-20.	 Protection of Assets 	 -48-
	 	 4-21.	 Line of Business 	 -48-
	 	 4-22.	 Affiliate Transactions 	 -49-
	 	 4-23.	 Additional Assurances.	 -49-
	 	 4-24.	 Adequacy of Disclosure.	 -50-
	 	 4-25.	 Investments 	 -50-
	 	 4-26.	 Prepayments of Indebtedness.	 -50-
	 	 4-27. 	 Other Covenants 	 -51-
	 	 	 	 
	 	Article 5 -	 Financial Reporting and Performance Covenants: 	 -51-
	 	 	 	 
	 	 5-1.	 Maintain Records 	  -51-
	 	 5-2.	 Access to Records. 	  -51-
	 	 5-3.	 Prompt Notice to Lender.	  -52-
	 	 5-4.	 Intentionally Omitted.	  -53-
	 	 5-5.	 Borrowing Base Certificates  	  -53-
	 	 5-6.	 Monthly Reports 	  -53-
	 	 5-7.	 Quarterly Reports 	 -53-
	 	 5-8.	 Annual Reports.	 -54-
	 	 5-9.	 Intentionally Omitted.	 -54-
	 	  5-10. 	 Inventories, Appraisals, and Audits.	 -54-
	 	 5-11.	 Additional Financial Information.	  -56- 
	 	 5-12.	 Intentionally Omitted.	 -56-
	 	 	 	 
	 	Article 6 - 	 Use and Collection of Collateral:	 -56-
	 	 	 	 
	 	  6-1.	 Use of Inventory Collateral.	 -56-
	 	  6-2.	 Adjustments and Allowances 	 -57-

 

 

  

iii

  

 

 

	 	 6-3.	 Validity of Accounts.	 -57-
	 	 6-4.	 Notification to Account Debtors	  -57- 
	 	 	 	 
	 	Article 7 - 	 Cash Management. Payment of Liabilities:	 -58-
	 	 	 	 
	 	   7-1.  	 Depository Accounts.	 -58-
	 	 7-2.	 Credit Card Receipts.	 -58-
	 	 7-3.	 The Concentration, Blocked, and Operating Accounts.	 -59-
	 	 7-4.	 Proceeds and Collection of Accounts. 	 -59-
	 	 7-5.	 Payment of Liabilities.	 -60-
	 	 7-6.	 The Operating Account 	 -61-
	 	 	 	 
	 	Article 8 - 	 Grant of Security Interest:	 -61-
	 	 	 	 
	 	  8-1. 	 Grant of Security Interest 	 -61-
	 	 8-2.	 Extent and Duration of Security Interest 	 -62-
	 	 	 	 
	 	 Article 9 -	 Lender As Borrower’s Attorney-In-Fact:	 -63-
	 	 	 	 
	 	9-1. 	 Appointment as Attorney-In-Fact.	 -63-
	 	9-2. 	 No Obligation to Act.	 -63-
	 	 	 	 
	 	 Article 10 -	 Events of Default: 	 -64-
	 	 	 	 
	 	  10-1. 	 Failure to Pay Revolving Credit.	 -64-
	 	 10-2.	 Failure To Make Other Payments.	 -64-
	 	 10-3.	 Failure to Perform Covenant or Liability (No Grace Period).	 -64-
	 	 10-4.	 Failure to Perform Covenant or Liability (Limited Grace Period). 	 -64-
	 	 10-5.	 Failure to Perform Covenant or Liability (Grace Period). 	 -64-
	 	 10-6.	 Misrepresentation.	 -65-
	 	 10-7.	 Default of Other Debt. 	 -65-
	 	 10-8.	 Default of Leases.	 -65-
	 	 10-9.	 Uninsured Casualty Loss.	 -65-
	 	 10-10.	 Judgment.  Restraint of Business.	 -65-
	 	 10-11.	 Business Failure.	 -65-
	 	 10-12.	 Bankruptcy.	 -66-
	 	 10-13.	 Indictment - Forfeiture	 -66-
	 	 10-14.	 Default by Guarantor or Subsidiary	 -66-
	 	 10-15.	 Termination of Guaranty.	 -66-
	 	 10-16.	 Challenge to Loan Documents.	 -66-
	 	 10-17.	 Intentionally Omitted.	 -66-
	 	 10-18.	 Change in Control.	 -67-
	 	 	 	 
	 	Article 11 - 	 Rights and Remedies Upon Default:	 -67- 
	 	 	 	 
	 	  11-1. 	 Rights of Enforcement 	  -67- 
	 	 11-2.	 Sale of Collateral.	 -67-
	 	 11-3.	 Occupation of Business Location.	 -68-
	 	 11-4.	 Grant of Nonexclusive License 	 -69-
	 	 11-5.	 Assembly of Collateral.	 -69-
	 	 11-6.	 Rights and Remedies.	 -69-

 

 

 

  

iv

  

 

 

	 	Article 12 - 	 Notices: 	 -69-
	 	 	 	 
	 	12-1. 	 Notice Addresses.	 -69-
	 	  12-2.   	 Notice Given. 	 -70-
	 	 	 	 
	 	Article 13 -	 Term:	 -71-
	 	 	 	 
	 	13-1. 	 Termination of Revolving Credit. 	 -71-
	 	13-2. 	 Effect of Termination 	 -71-
	 	 	 	 
	 	 Article 14 -	 General:	 -71-
	 	 	 	 
	 	14-1.	 Protection of Collateral 	 -71-
	 	14-2.	 Successors and Assigns.	 -72-
	 	14-3.	 Severability. 	 -72-
	 	14-4. 	 Amendments.  Course of Dealing.	 -72-
	 	14-5.	 Power of Attorney.	 -72-
	 	14-6.	 Application of Proceeds 	 -73-
	 	14-7.	 Costs and Expenses of Lender.	 -73-
	 	14-8.	 Copies and Facsimiles. 	 -73-
	 	14-9.	 Massachusetts Law.	 -73-
	 	14-10.	 Consent to Jurisdiction.	 -74-
	 	14-11.	 Indemnification	 -74-
	 	14-12.	 Rules of Construction.	 -75-
	 	14-13.	 Intent.	 -76-
	 	14-14. 	 Right of Set-Off.	 -77-
	 	14-15. 	 Maximum Interest Rate	 -77-
	 	14-16.	 Waivers.	 -77-
	 	14-17.	 Confidentiality.	 -78-
	 	14-18.	 Press Releases	 -79-
	 	14-19.	 No Advisory or Fiduciary Responsibility	 -79-
	 	14-20.	 USA PATRIOT Act Notice	 -80-
	 	14.21.	 Existing Loan Agreement Amended and Restated.	 -80-

 

 

 

  

v

  

 

EXHIBITS

 

2-8                      :           Revolving Credit Note

4-2                      :           Related Entities

4-3                      :           Trade Names

4-5                      :           Locations, Leases, and Landlords

4-6                      :           Encumbrances

4-7                      :           Indebtedness

4-8                      :           Insurance Policies

4-10                    :           Capital Leases

4-13                    :           Taxes

4-17                    :           Litigation

4-22                    :           Permitted Management Fees and Other Affiliated Transactions

4-23                    :           Excluded Assets

5-5                      :           Form of Borrowing  Base Certificate

6-3                      :           Bonds and Deposits

7-1                      :           DDAs

7-2                      :           Credit Card Arrangements

  

vi

  

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

November 13, 2007

 

THIS SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) is made between

 

Bank of America, N.A. (the “Lender”), a national banking association with offices at 100 Federal Street, Boston, Massachusetts  02110

 

and

 

Aeropostale, Inc., (hereinafter, the “Borrower”), a Delaware corporation with its principal executive offices at 1372 Broadway,  New York, New York  10020

 

in consideration of the mutual covenants contained herein and benefits to be derived herefrom,

 

WITNESSETH:

 

WHEREAS, Aeropostale, Inc., f/k/a MSS-Delaware, Inc. entered into an Amended and Restated Loan and Security Agreement dated as of October 7, 2003 with Fleet Retail Finance Inc, as agent for the lenders party thereto and such lenders (as amended and in effect, the “Existing Loan Agreement”); and

 

WHEREAS, Fleet Retail Finance, Inc. has assigned all of its right, title and interest under the Existing Loan Agreement to Bank of America, N.A.;

 

WHEREAS, Aeropostale, Inc., is the successor in interest by merger to MSS-Delaware, Inc. and

 

WHEREAS, the Borrower desires to amend and restate the Existing Loan Agreement in order (a) to increase the amount of the Loan Ceiling (as hereinafter defined) to $150,000,000, and (b) to make certain other amendments to the terms and conditions of the Existing Loan Agreement; and

 

NOW, THEREFORE, the parties hereto agree that the Existing Loan Agreement shall be amended and restated in its entirety to read as follows:

 

Article 1 - Definitions:

 

As herein used, the following terms have the following meanings or are defined in the section of this Agreement so indicated:

 

	
  

	
“Acceptable Blank Stock Inventory”:  Inventory of the Loan Parties which consists of blank t-shirts and other items of apparel which are in the possession of third Persons for processing, which Inventory otherwise would be deemed Acceptable Inventory and as to which the Lender has received an agreement from such processor in form and substance reasonably acceptable to the Lender.

 

 

  

  

  

 

 

	
  

	
“Acceptable L/C Inventory”:  Inventory which is the subject of a Documentary L/C in favor of a foreign manufacturer or vendor of such Inventory, which Inventory is to be manufactured for, or delivered to, the Loan Parties and will become Acceptable In-Transit Inventory within seventy-five (75) days after the date of issuance of the Documentary L/C.

 

	
  

	
“Acceptable In-Transit Inventory”:  Inventory-in-transit to a Loan Party, title to which has passed to the Loan Party which Inventory has been placed with a carrier (f.o.b.) for shipment to the Loan Parties , and which Inventory is scheduled to be received within fifty (50) days at a Loan Party’s distribution center, as to which Inventory the Lender has a perfected security interest which is prior and superior to all security interests, claims, and all Encumbrances other than Permitted Encumbrances (it being understood, however, that the Lender will not require possession of the Documents of Title or any foreign filings to be deemed “perfected”); provided that such Inventory shall be deemed to be Acceptable In-Transit Inventory only if the Lender has received an agreement (to the extent relevant to such Inventory) with (i) each sourcing agent under any of the Loan Party’s sourcing agreements, and (ii) each Loan Party’s custom brokers, each satisfactory in form and substance to the Lender.  Notwithstanding the foregoing, the Lender, periodically (but in no event in months other than July through October of any year), may, in its reasonable discretion, include Inventory which otherwise satisfies the requirements of this definition but for the fact that title has not yet passed to a Loan Party as Acceptable In-Transit Inventory, but only if the Lender has received written confirmation from the applicable sourcing agent that title to such Inventory will pass to a Loan Party upon receipt of payment of a sum certain and the Borrower has requested the Lender to make, and has Availability for, a Revolving Credit Loan to pay such sourcing agent in such amount.

 

	
  

	
“Acceptable Inventory”:  Such of the Loan Parties Inventory, at such locations, and of such types, character, qualities and quantities, as the Lender in its sole discretion from time to time determines to be acceptable for borrowing, including, without limitation, Acceptable In-Transit Inventory and Acceptable L/C Inventory (but excluding Acceptable Blank Stock Inventory), as to which Inventory, the Lender has a perfected security interest which is prior and superior to all security interests, claims, and all Encumbrances other than Permitted Encumbrances.  Without limiting the generality of the foregoing, Acceptable Inventory shall in no event include Inventory that is not salable, non-merchandise categories (such as labels, bags and packaging), Inventory not located in the United States (other than Acceptable In-Transit Inventory and Acceptable L/C Inventory), samples, damaged goods, return-to-vendor merchandise, and packaway Inventory.

 

	
  

	
“Accounts” and “Accounts Receivable” include, without limitation, “accounts” as defined in the UCC, and also all:  accounts, accounts receivable, credit card receivables, notes, drafts, acceptances, and other forms of obligations and receivables and rights to payment for credit extended and for goods sold or leased, or services rendered, whether or not yet earned by performance; all “contract rights” as formerly defined in the UCC; all Inventory which gave rise thereto, and all rights associated with such Inventory, including the right of stoppage in transit; and all reclaimed, returned, rejected or repossessed Inventory (if any) the sale of which gave rise to any Account.

 

 

  

-2-

  

 

 

	
 

	

“ACH”: Automated clearing house.

 

	
 

	
"Account Debtor": Has the meaning given that term in the UCC and includes all credit card processors of the Borrower.

 

	
 

	
"Adjusted Eurodollar Rate": With respect to any Eurodollar Loan for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent) equal to (a) the Eurodollar Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

	
 

	
"AGC": Aero GC Management LLC, a Virginia Limited Liability Company with an address of 112 West 34th Street., New York, New York 10120, a single member managed LLC, where Borrower is the sole member.

 

	
 

	

“Aeropostale Canada”: Aeropostale Canada, Inc., an Ontario Canada corporation with a United States address of 112 West 34th Street., New York, New York 10120, a wholly owned Subsidiary of the Borrower.

 

	
 

	

“Affiliate”: With respect to any two Persons, a relationship in which (a) one holds, directly or indirectly, not less than twenty-five percent (25%) of the capital stock, beneficial interests, partnership interests, or other equity interests of the other; or (b) one has, directly or indirectly, the right, under ordinary circumstances, to vote for the election of a majority  of the directors (or other body or Person who has those powers customarily vested in a board of directors of a corporation); or (c) not less than twenty- five percent (25%) of their respective ownership is directly or indirectly held by the same third Person.

 

	
 

	

“Aggregate Outstandings”: At any time of determination, the sum of (a) the Revolving Credit Loans outstanding, plus (b) the Stated Amount of L/Cs outstanding.

 

	
  

	
“Applicable Margin”: Shall mean the following percentages based upon the following performance criteria:

 

	
Level

	
Average Outstandings

	
Eurodollar Loans Margin

 

	
Prime Rate Margin

	
Line (Unused) Fee

	
I

	
Less than $50,000,000

	
0.75%

	
0%

	
0.125%

	
II

	
Greater than or equal to $50,000,000 and less than $100,000,000

	
1.00%

	
0%

	
0.125%

	
III

	
Greater than or equal to $100,000,000

	
1.25%

	
0%

	
0.15%

 

The Applicable Margin shall be adjusted quarterly as of the first day of each February, May, August, and November, commencing February 1, 2008, based upon the Borrower’s Average Outstandings calculated for the most recent quarter then ended. Upon the occurrence of an Event of Default, at the option of the Lender, interest shall be determined in the manner set forth in Section 2-10(f).

 

 

  

-3-

  

 

 

	
 

	

“Appraised Value”: The net appraised liquidation value of the Loan Parties’ Inventory as set forth in the Loan Parties’ stock ledger (expressed as a percentage of the Cost of such Inventory), each as reasonably determined from time to time by the Lender in accordance with its customary procedures and based upon the most recent appraisal conducted hereunder by an independent appraiser reasonably satisfactory to the Lender.

 

	
 

	

“Availability”: The lesser of the Loan Ceiling or the Borrowing Base;

 

Minus

 

(I) The then unpaid principal balance of the Loan Account.

 

Minus

 

(II) The then Stated Amount of all L/C’s.

 

Minus

 

(III) Unreimbursed L/C Obligations.

 

	
 

	
"Average Outstandings": For any three month period, the sum of (a) the average Revolving Credit Loans outstanding during such period, plus (b) the average Stated Amount of L/Cs outstanding during such period.

 

	
  

	
“AWI”:  Aeropostale West, Inc., a Delaware corporation with an address of 201 Willowbrook Blvd., Wayne, New Jersey 07470, a wholly owned Subsidiary of the Borrower.

 

	
 

	

“Bank Products”: Any services or facilities provided to a Loan Party by the Lender or any of its Affiliates (but excluding Cash Management Services), including without limitation, on account of leasing, swap and other hedging contracts.

 

 

  

-4-

  

 

 

	
 

	

“Bank Product Reserves”: Such reserves as the Lender from time to time determine in its discretion as being appropriate to reflect the liabilities and obligations of the Loan Parties with respect to Bank Products then provided or outstanding.

 

	
 

	
"Bankruptcy Code": Title 11, U.S.C., as amended from time to time.

 

	
 

	
"Base Rate Loan": Each Revolving Credit Loan while bearing interest at the Prime Rate.

 

	
 

	

“Blocked Account”: Is defined in Section 7-3.   

 

	
 

	
"Borrower": Is defined in the Preamble.

 

	
 

	

“Borrowing Base”: The amounts calculated to the following formulae, as applicable:

 

	
  

	
(a)

	
If the outstanding amount of Revolving Credit Loans and the Stated Amount of L/Cs is less than or equal to $75,000,000 in the aggregate, the result of the following:

 

(i)          95% of the book value (as determined in accordance with GAAP) of Acceptable Inventory,

 

plus

 

(ii)          85% of the face amount of Eligible Credit Card Receivable;

 

minus

 

(iii)          Reserves.

 

	
  

	
(b)

	
If the outstanding amount of Revolving Credit Loans and the Stated Amount of L/Cs is greater than $75,000,000 in the aggregate, the result of the following:

 

(i)          85% of the most recent Appraised Value of Acceptable Inventory multiplied by the Cost of Acceptable Inventory,

 

plus

 

(ii)          85% of the face amount of Eligible Credit Card Receivable;

 

minus

 

(iii)          Reserves.

 

	
 

	
“Borrowing Base Certificate”: Is defined in Section 5-5.

 

	
 

	

“Business Day”: Any day other than (a) a Saturday or  Sunday; (b) any day on which banks in Boston, Massachusetts or New York, New York, generally are not open to the general public for the purpose of conducting commercial banking business; or (c) a day on which the Lender is not open to the general public to conduct business, and, if such day relates to any Eurodollar Loan, means any such day on which dealings in dollar deposits are conducted by and between banks in the London interbank market.

 

 

 

  

-5-

  

 

 

	
 

	
"Business Plan": The Borrower’s then current business plan and any revision, amendment, or update of such business plan to which the Lender has provided its written sign-off.

 

	
 

	
"Capital Expenditures": The expenditure of funds or the incurrence of liabilities which are capitalized in accordance with GAAP, provided that for purposes of this Agreement, capital expenditures funded by the proceeds from the incurrence of Indebtedness permitted hereunder, by the proceeds received from the sale of assets permitted pursuant to §4-12(d) hereof, by casualty insurance proceeds or condemnation proceeds shall, to the extent of such proceeds, not be deemed Capital Expenditures.

 

	
 

	

“Capital Lease”: Any lease which is capitalized in accordance with GAAP.

 

	
 

	

“Cash Dominion Event”: Either (i) the occurrence and continuance of any Event of Default, or (ii) the failure of the Borrowers to maintain Availability in an amount greater than 15% of the then Borrowing Base.  For purposes of this Agreement, the occurrence of a Cash Dominion Event shall be deemed continuing (i) so long as such Event of Default has not been waived, and/or (ii) if the Cash Dominion Event arises as a result of the Borrowers’ failure to achieve Availability as required hereunder, until Availability has exceeded 15% of the then Borrowing Base for 30 consecutive Business Days, in which case a Cash Dominion Event shall no longer be deemed to be continuing for purposes of this Agreement; provided that a Cash Dominion Event shall be deemed continuing (even if an Event of Default is no longer continuing and/or Availability exceeds the required amount for 30 consecutive Business Days) at all times after a Cash Dominion Event has occurred and been discontinued on two (2) occasion(s) during any calendar year.

 

	
  

	
“Cash Equivalents” shall mean, as to any Person, (i) securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than twelve (12) months from the date of acquisition by such Person, (ii) time deposits and certificates of deposit of any commercial bank incorporated in the United States of recognized standing having capital and surplus in excess of $100,000,000 with maturities of not more than twelve (12) months from the date of acquisition by such Person, (iii) repurchase obligations with a term of not more than seven (7) days for underlying securities of the types described in clause (i) above, provided that there shall be no restriction on the maturities of such underlying securities pursuant to this clause (iii) entered into with a bank meeting the qualifications specified in clause (ii) above, (iv) commercial paper issued by the parent corporation of any commercial bank (provided that the parent corporation and the bank are both incorporated in the United States) of recognized standing having capital and surplus in excess of $500,000,000 and commercial paper issued by any Person incorporated in the United States rated at least A-1 or the equivalent thereof by Standard & Poor’s Ratings Group or at least P-1 or the equivalent thereof by Moody’s Investors Service, Inc. and in each case maturing not more than twelve (12) months after the date of acquisition by such Person, and (v) investments in money market funds substantially all of whose assets are comprised of securities of the types described in clauses (i) through (v) above.

 

 

  

-6-

  

 

 

	
 

	

“Cash Management Reserves ”: Such reserves as the Lender, from time to time, determines in its discretion as being appropriate to reflect the reasonably anticipated liabilities and obligations of the Loan Parties with respect to Cash Management Services then provided or outstanding.

 

	
 

	

“Cash Management Services”: Any one or more of the following types or services or facilities provided to a Loan Party by the Lender or any of its Affiliates: (a) automated clearinghouse transactions, (b) cash management services, including, without limitation, controlled disbursement services, treasury, depository, overdraft, and electronic funds transfer services, (c) foreign exchange facilities, (d) credit or debit cards, and (e) merchant card services.

 

	
 

	

“Change in Control”: The occurrence of any of the following:

 

(a)           The acquisition, by any group of persons (within the meaning of the Securities Exchange Act of 1934, as amended) or by any Person, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission) of 30% or more of the issued and outstanding capital stock of the Borrower (on a fully diluted basis) having the right, under ordinary circumstances, to vote for the election of directors of the Borrower.

 

(b)            Persons (“Continuing Directors”) who (i) were directors of the Borrower on the first day of any period consisting of twelve (12) consecutive calendar months (the first of which twelve (12) month periods commencing with the first day of the month during which this Agreement was executed), or (ii) subsequently became directors of the Borrower and whose initial election or initial nomination for election subsequent to that date was approved by a majority of the Continuing Directors then on the board of directors of the Borrower cease, for any reason other than death or disability or replacement (in the ordinary course of business and not as a result of any change in the equity ownership of the Borrower), to constitute a majority of the directors of the Borrower.

 

	
 

	

“Chattel Paper”: Has the meaning given that term in the UCC.

 

	
 

	

“Collateral”: Is defined in Section 8-1.

 

 

  

-7-

  

 

 

	
  

	
“Commercial Tort Claim”: Has the meaning given that term in the UCC.

 

	
  

	
“Commitment”: Subject to the provisions of Section 2-23, as of the Second Amendment Effective Date, as follows:

 

	
LENDER

	
DOLLAR COMMITMENT

	
COMMITMENT PERCENTAGE

	
Bank of America, N.A.

	
$150,000,000.00

	
100%

 

	
  

	
“Commitment Percentage”: As provided in the Definition of “Commitment”, above.

                                                          

	
 

	

“Concentration Account”: Is defined in Section 7-3.

 

	
  

	
“Consolidated”: With reference to any term defined herein, shall mean that term as applied to the accounts of the Borrower and its Subsidiaries, consolidated in accordance with GAAP.

 

	
 

	

“Cost”: The lower of

 

(a)           the calculated cost of purchases, as determined from invoices received by the Borrower, the Borrower’s purchase journal or stock ledger, based upon the Borrower’s accounting practices, known to the Lender, which practices are in effect on the date on which this Agreement was executed; or

 

(b)           the cost equivalent of the lowest ticketed or promoted price at which the subject inventory is offered to the public, after all mark-downs (whether or not such price is then reflected on the Borrower’s accounting system), which cost equivalent is determined in accordance with the retail method of accounting, reflecting the Borrower’s historic business practices.

 

“Cost” does not include inventory capitalization costs or other non-purchase price charges (such as freight) used in the Borrower’s calculation of cost of goods sold.

 

	
 

	

“Cost Factor”: The result of 1 minus the Borrower’s then cumulative markup percent derived from the Borrower’s purchase journal on a rolling 12-month basis.

 

	
 

	

“Costs of Collection”: Includes, without limitation, all reasonable attorneys’ fees and reasonable out-of-pocket expenses incurred by the  Lender’s attorneys, and all reasonable costs incurred by the Lender in the administration of the Liabilities and/or the Loan Documents, including, without limitation, reasonable costs and expenses associated with travel on behalf of the Lender, which costs and expenses are directly or indirectly related to or in respect of the Lender’s:  administration and management of the Liabilities (other than customary overhead expenses); negotiation, documentation, and amendment of any Loan Document; or efforts to preserve, protect, collect, or enforce the Collateral, the Liabilities, and/or the Lender’s Rights and Remedies and/or any of the Lender’s rights and remedies against or in respect of any guarantor or other person liable in respect of the Liabilities (whether or not suit is instituted in connection with such efforts).  The Costs of Collection are Liabilities, and at the Lender’s option may bear interest at the highest post-default rate which the Lender may charge the Borrower hereunder as if such had been lent, advanced, and credited by the Lender to, or for the benefit of, the Borrower. Notwithstanding the foregoing, the entitlement of any Lender to “Costs of Collection” is limited to the extent provided in §14-7 hereof.

 

 

 

  

-8-

  

 

 

	
 

	
"DDA": Any checking or other demand daily depository account maintained by a Loan Party.

 

	
  

	
"Default Interest Event":  The occurrence of any of the following:

 

(a)           The acceleration of the time for payment of the Liabilities upon the occurrence of an Event of Default.

 

(b)           The occurrence of any Event of Default under Sections 10-1, 10-2, 10-11 or 10-12 hereof.

 

(c)The failure of the Borrower to comply with the provisions of Section 5-5(which failure continues for five Business Days), or Sections 5-6 or 5-7 (which failures continue for fifteen (15) Business Days), or Article 7.

 

	
 

	

“Deposit Account”: Has the meaning given that term in the UCC.

 

	
 

	
"Documents": Has the meaning given that term in the UCC.

 

	
 

	

“Documents of Title”: Has the meaning given that term in the UCC.

 

	
 

	

“Dollar Commitment”: As provided in the Definition of “Commitment”, above.

 

	
 

	

“Eligible Credit Card Receivables”:  As of any date of determination, Accounts due to a Loan Party from VISA, MasterCard, American Express, Diners Club, Discovercard, and other major credit card processors reasonably acceptable to the Lender, in its reasonable discretion, as arise in the ordinary course of business, and which have been earned by performance and are deemed by the Lender in its discretion to be eligible for inclusion in the calculation of the Borrowing Base.  None of the following shall be deemed to be Eligible Credit Card Receivables:

                                                                               

(a)           Accounts that have been outstanding for more than five (5) Business Days from the date of sale;

 

 

  

-9-

  

 

 

(b)           Accounts with respect to which a Loan Party does not have good, valid and marketable title thereto, free and clear of any Lien (other than Liens granted to the Lender);

 

(c)           Accounts that are not subject to a first priority security interest in favor of the Lender;

 

(d)           Accounts which are disputed, are with recourse, or with respect to which a claim, counterclaim, offset or chargeback has been asserted by the related credit card processor (but only to the extent of such dispute, counterclaim, offset or chargeback);

 

(e)           Accounts as to which the credit card processor has the right under certain circumstances to require a Loan Party to repurchase the Accounts from such credit card processor;

 

(f)           Accounts arising from the use of a private label credit card of a Loan Party; or

 

(g)           Accounts (other than VISA, Master Card, American Express, Diners Club and Discovercard) which the Lender determines in its reasonable commercial discretion acting in good faith to be unlikely to be collected.

 

	
 

	

“Employee Benefit Plan”: As defined in Section 3(2) of ERISA.

 

	
 

	

“Encumbrance”: Each of the following:

 

(a)           Any security interest, mortgage, pledge, hypothecation, lien, attachment, or charge of any kind (including any agreement to give any of the foregoing); the interest of a lessor under a Capital Lease; conditional sale or other title retention agreement; sale (to the extent of recourse) of accounts receivable or chattel paper; or other arrangement pursuant to which any Person is entitled to any preference or priority with respect to the property or assets of another Person or the income or profits of such other Person or which constitutes an interest in property to secure an obligation; each of the foregoing whether consensual or non-consensual and whether arising by way of agreement, operation of law, legal process or otherwise.

 

(b)           The filing of any financing statement under the UCC or comparable law of any jurisdiction.

 

	
 

	

“End Date”: The date upon which both (a) all Liabilities (other than indemnities, not then due and payable, which survive repayment of the Revolving Credit Loans and L/Cs and termination of the Commitments) have been paid in full and (b) all obligations of any Lender to make loans and advances and to provide other financial accommodations to the Borrower hereunder shall have been irrevocably terminated.

 

 

 

  

-10-

  

 

 

 

	
 

	

“Environmental Laws”: All of the following:

 

(a)           Any and all federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees or requirements which regulate or relate to, or impose any standard of conduct or liability on account of or in respect to environmental protection matters, including, without limitation, Hazardous Materials, as are now or hereafter in effect.

 

(b)           The common law relating to damage to Persons or property from Hazardous Materials.

 

	
 

	

“Equipment”: Includes, without limitation, “equipment” as defined in the UCC, and also all motor vehicles, rolling stock, machinery, office equipment, plant equipment, tools, dies, molds, store fixtures, furniture, and other goods, property, and assets which are used and/or were purchased for use in the operation or furtherance of the Borrower’s business, and any and all accessions or additions thereto, and substitutions therefor.

 

	
 

	

“ERISA”: The Employee Retirement Income Security Act of 1974, as amended.

 

	
 

	

“ERISA Affiliate”: Any Person which is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group which includes the Borrower and which would be treated as a single employer under Section 414 of the Internal Revenue Code of 1986, as amended.

 

	
 

	

“Eurodollar Business Day”: Any day which is both a Business Day and a day on which the principal Eurodollar market in which Bank of America, N.A. participates is open for dealings in United States Dollar deposits.

 

	
 

	

“Eurodollar Loan”: Any Revolving Credit Loan which bears interest at the Adjusted Eurodollar Rate.

 

	
 

	

"Eurodollar Rate”: For any Interest Period with respect to a Eurodollar Loan, (a) the rate per annum equal to the rate determined by the Lender to be the offered rate that appears on the page of the Telerate screen (or any successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or (b) if the rate referenced in the preceding clause (a) does not appear on such page or service or such page or service shall not be available, the rate per annum equal to the rate determined by the Lender to be the offered rate on such other page or other service that displays an average British Bankers Association Interest Settlement Rate for deposits in dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or (c) if the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum determined by the Lender as the rate of interest at which deposits in dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Loan being made, continued or converted by Bank of America, N.A. and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 4:00 p.m. (London time) two Business Days prior to the first day of such Interest Period.

 

 

  

-11-

  

 

 

	
 

	

“Events of Default”: Is defined in Article 10.

 

	
  

	
“Existing Loan Agreement”: Has the meaning set forth in the Recitals hereto.

 

	
 

	

“Federal Funds Effective Rate”: For any day, the rate per annum 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 that (a) if such day is not a Business Day, the Federal Funds 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 (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions.

 

	
 

	

“Fee Letter”: The letter agreement, dated November 13, 2007, between the Borrower and the Lender with respect to certain fees payable to the Lender in connection with this Agreement..

 

	
 

	

“Fixtures”: Has the meaning given that term in the UCC.

 

	
 

	

“GAAP”: Principles which are consistent with those promulgated or adopted by the Financial Accounting Standards Board and its predecessors (or successors) in effect and applicable to that accounting period in respect of which reference to GAAP is being made, provided, however, in the event of a Material Accounting Change, then unless otherwise specifically agreed to by the Lender, the Borrower shall include, with its monthly,  quarterly, and annual financial statements a schedule, certified by the Borrower’s chief financial officer, on which the effect of such Material Accounting Change to the statement with which provided shall be described.

 

	
 

	

“General Intangibles”: Includes, without limitation, “general intangibles” as defined in the UCC; and also all: rights to payment for credit extended; deposits; amounts due to a Loan Party; credit memoranda in favor of a Loan Party; warranty claims; tax refunds and abatements; insurance refunds and premium rebates; all means and vehicles of investment or hedging, including, without limitation, options, warrants, and futures contracts; records; customer lists; telephone numbers; goodwill; causes of action; judgments; payments under any settlement or other agreement; literary rights; rights to performance; royalties; license and/or franchise fees; rights of admission; licenses; franchises; license agreements, including all rights of a Loan Party to enforce same; permits, certificates of convenience and necessity, and similar rights granted by any governmental authority; patents, patent applications, patents pending, and other intellectual property; internet addresses and domain names; developmental ideas and concepts; proprietary processes; blueprints, drawings, designs, diagrams, plans, reports, and charts; catalogs; manuals; technical data; computer software programs (including the source and object codes therefor), computer records, computer software, rights of access to computer record service bureaus, service bureau computer contracts, and computer data; tapes, disks, semi-conductors chips and printouts; trade secrets rights, copyrights, mask work rights and interests, and derivative works and interests; user, technical reference, and other manuals and materials; trade names, trademarks, service marks, and all goodwill relating thereto; applications for registration of the foregoing; and all other general intangible property of the Loan Parties in the nature of intellectual property; proposals; cost estimates, and reproductions on paper, or otherwise, of any and all concepts or ideas, and any matter related to, or connected with, the design, development, manufacture, sale, marketing, leasing, or use of any or all property produced, sold or leased, by a Loan Party or credit extended or services performed, by a Loan Party, whether intended for an individual customer or the general business of a Loan Party, or used or useful in connection with research by a Loan Party.

 

 

 

  

-12-

  

 

 

	
 

	

“Goods”: Has the meaning given that term in the UCC.

 

	
  

	
“Guarantor” and “Guarantors”: means individually and collectively AWI, Jimmy’Z, AGC and any other subsidiary of the Borrower which executes and delivers a Guarantor Agreement.

 

	
 

	

“Guarantor Agreement”: Each instrument and document executed by a Guarantor of the Liabilities to evidence or secure the Guarantor’s guaranty thereof.

 

	
 

	

“Hazardous Materials”: Any (a) hazardous materials, hazardous waste, hazardous or toxic substances, petroleum products, which (as to any of the foregoing) are defined or regulated as a hazardous material in or under any Environmental Law and (b) oil in any physical state.

 

	
 

	

“Indebtedness”: All indebtedness and obligations of or assumed by any Person on account of or in respect to any of the following:

 

(a)           In respect of money borrowed (including any indebtedness which is non-recourse to the credit of such Person but which is secured by an Encumbrance on any asset of such Person) whether or not evidenced by a promissory note, bond, debenture or other written obligation to pay money.

 

 

  

-13-

  

 

 

 

(b)           In connection with any letter of credit or acceptance transaction (including, without limitation, the face amount of all letters of credit and acceptances issued for the account of such Person or reimbursement on account of which such Person would be obligated).

 

(c)           In connection with the sale or discount of accounts receivable or chattel paper of such Person other than the sale of retail Accounts to credit card processors.

 

(d)           On account of deposits or advances.

 

(e)           As lessee under Capital Leases.

 

(f)           On account of net obligations under any swap or hedging contract.

 

(g)           With respect to obligations to purchase, redeem, retire, defease or otherwise make any payment in respect of any equity interest in such Person or any other Person, or any warrant, right or option to acquire such equity interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends.

 

“Indebtedness” also includes:

 

(x)           Indebtedness of others secured by an Encumbrance on any asset of such Person, whether or not such Indebtedness is assumed by such Person.

 

(y)           Any guaranty, endorsement, suretyship or other undertaking pursuant to which that Person may be liable on account of any Indebtedness of any third party, other than endorsements of negotiable instruments for collection in the ordinary course of business.

 

(z)           The Indebtedness of a partnership or joint venture in which such Person is a general partner or joint venturer to the extent that the holder of such Indebtedness has recourse to such Person.

 

	
 

	
“Indemnified Claim”: Is defined in Section 14-11.

 

	
 

	

“Indemnified Person”: Is defined in Section 14-11.

 

	
 

	

“Instruments”: Has the meaning given that term in the UCC.

 

	
 

	

“Interest Payment Date”: With reference to:

 

Each Eurodollar Loan: The last day of the Interest Period relating thereto and, in addition, if such Eurodollar Loan has an Interest Period of greater than three months, the last day of the third month of such Interest Period; the Termination Date; and the End Date.

 

 

  

-14-

  

 

 

Each Base Rate Loan: the first day of each month; the Termination Date; and the End Date.

 

	  	“Interest Period”:	(a)	With respect to each Eurodollar Loan: Subject to Subsection (c), below, the period commencing on the date of the making or continuation of, or conversion to, the subject Eurodollar Loan and ending one, two, three or six months thereafter, as the Borrower may elect by notice (pursuant to Section 2-5(a)) to the Lender.

	  	 	(b)	With respect to each Base Rate Loan: Subject to Subsection (c), below, the period commencing on the date of the making or continuation of or conversion to such Base Rate Loan and ending on that date (i) as of which the subject Base Rate Loan is converted to a Eurodollar Loan, as the Borrower may elect by notice (pursuant to Section 2-5(a)) to the Lender, or (ii) on which the subject Base Rate Loan is paid by the Borrower.

 

	  	 	(c)	The setting of Interest Periods is in all instances subject to the following:

 

(i)           Any Interest Period for a Base Rate Loan which would otherwise end on a day which is not a Business Day shall be extended to the next succeeding Business Day.

 

(ii)           Any Interest Period for a Eurodollar Loan which would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day, unless that succeeding Business Day is in the next calendar month, in which event such Interest Period shall end on the last Business Day of the month during which the Interest Period ends.

 

(iii)           Subject to Subsection (iv), below, any Interest Period applicable to a Eurodollar Loan, which Interest Period begins on a day for which there is no numerically corresponding day in the calendar month during which such Interest Period ends, shall end on the last Business Day of the month during which that Interest Period ends.

 

(iv)           Any Interest Period which would otherwise end after the Termination Date shall end on the Termination Date.

 

(v)           The number of Interest Periods in effect at any one time is subject to Section 2-10(d) hereof.

 

	
 

	

“Inventory”: Includes, without limitation, “inventory” as defined in the UCC and also all:  packaging, advertising, and shipping materials related to any of the foregoing, and all names or marks affixed or to be affixed thereto for identifying or selling the same; Goods held for sale or lease or furnished or to be furnished under a contract or contracts of sale or service by the Borrower, or used or consumed or to be used or consumed in the Borrower’s business; Goods of said description in transit: returned, repossessed and rejected Goods of said description; and all documents (whether or not negotiable) which represent any of the foregoing

 

 

  

-15-

  

 

 

	
 

	

“Investment Property”: Has the meaning given that term in the UCC.

 

	
 

	

“ISP”: With respect to any L/C, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance).

 

	
 

	

“Issuer”: Bank of America, N.A.

 

	
 

	
"Jimmy’Z”: Jimmy’Z Surf Co., Inc., a Delaware corporation with an address of 112 West 34th Street, New York, New York 10120, a wholly owned Subsidiary of the Borrower.

 

	
 

	

“L/C”: Any letter of credit, the issuance of which is procured by the Lender for the account of the Borrower and any banker’s acceptance made on account of such letter of credit.

 

	
 

	

“Lease”: Any lease or other agreement, no matter how styled or structured, pursuant to which the Borrower is entitled to the use or occupancy of any space.

 

	
 

	

“Lender”: Defined in the Preamble to this Agreement.

 

	
 

	

“Lender’s Rights and Remedies”: Is defined in Section 11-6.

 

	
  

	
“Letter of Credit Rights”: Has the meaning given that term in the UCC and also shall refer to any right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or at the time is entitled to demand payment or performance.

 

	
 

	

“Liabilities” (in the singular, “Liability”): Includes, without limitation, all and each of the following, whether now existing or hereafter arising:

 

(a)           Any and all direct and indirect liabilities, debts, and obligations of the Borrower to the Lender, each of every kind, nature, and description under the Loan Documents.

 

(b)           Each obligation to repay any loan, advance, indebtedness, note, obligation, overdraft, or amount now or hereafter owing by the Borrower to the Lender under the Loan Documents (including all future advances whether or not made pursuant to a commitment by the Lender), whether or not any of such are liquidated, unliquidated, primary, secondary, secured, unsecured, direct, indirect, absolute, contingent, or of any other type, nature, or description, or by reason of any cause of action which the Lender may hold against the Borrower under the Loan Documents.

 

 

  

-16-

  

 

 

(c)           All notes and other obligations of the Borrower now or hereafter assigned to or held by the Lender with respect to the Loan Documents, each of every kind, nature, and description.

 

(d)           All interest, fees, and charges and other amounts which may be charged by the Lender to the Borrower under the Loan Documents and/or which may be due from the Borrower to the Lender under the Loan Documents from time to time.

 

(e)           All costs and expenses incurred or paid by the Lender in respect of any of the Loan Documents (including, without limitation, Costs of Collection, reasonable attorneys’ fees, and all court and litigation costs and expenses).

 

(f)           Any and all covenants of the Borrower to or with the  Lender and any and all obligations of the Borrower to act or to refrain from acting in accordance with under Loan Documents.

 

(f)           All obligations on account of Bank Products and Cash Management Services.

 

(g)           Each of the foregoing as if each reference to the “Lender “ therein were to each Affiliate of the Lender.

 

	
 

	
"Line (Unused) Fee”: Is defined in Section 2-13.

 

	
 

	

“Liquidity Requirement”: With respect to any acquisition or payment, (i) no Suspension Event or Event of Default then exists or would arise from the consummation of the specified transaction and the making of any payments with respect thereto, (ii) the Borrower has furnished the Lender with a pro forma balance sheet, income statement and cash flow statement (including, without limitation, a projection of Availability) for the subsequent 12 month period, after giving effect to the consummation of the specified transaction and the making of any payments with respect thereto; and (iii) the Lender is reasonably satisfied that Availability, after giving effect to such specified transaction and the making of any payments with respect thereto, will be at least equal to 20% of the Borrowing Base for the 12 months following such specified transaction and the making of such payments; and (iv) the Lender is reasonably satisfied that, after giving effect to such specified transaction and the making of any payments with respect thereto, the Borrower will be solvent.

 

	
 

	

“Loan Account”: Is defined in Section 2-7.

 

	
 

	

“Loan Ceiling”: $150,000,000.00.

 

 

  

-17-

  

 

 

 

	
 

	

“Loan Documents”: This Agreement, each instrument and document executed and/or delivered as contemplated by Article 3, below, and each other instrument or document from time to time executed and/or delivered in connection with the arrangements contemplated hereby or in connection with any transaction which arises out of any depository, letter of credit, interest rate protection, foreign exchange or other hedging agreement, or equipment leasing services provided by the Lender or any Affiliate of the  Lender, as each may be amended from time to time.

 

	
 

	
 “Loan Party” or “Loan Parties”: individually and collectively the Borrower and each Guarantor.

 

	
 

	

“Material Accounting Change”: Any change in GAAP applicable to accounting periods subsequent to the Borrower’s fiscal year most recently completed prior to the execution of this Agreement, which change has a material effect on the Borrower’s financial condition or operating results, as reflected on financial statements and reports prepared by or for the Borrower, when compared with such condition or results as if such change had not taken place.

 

	
 

	

“Material Adverse Effect”: A material adverse effect upon (i) the  Loan Parties  business, properties, operations or financial affairs, taken as a whole, or (ii) the Collateral, taken as a whole, or (iii) the ability of the Loan Parties to perform their respective obligations under this Agreement and the other Loan Documents, taken as a whole, or (iv) the validity, enforceability, perfection or priority of this Agreement or the other Loan Documents or of the rights and remedies of the Lender under any Loan Document, taken as a whole.

 

	
 

	

“Maturity Date”: November 13, 2012.

 

	
 

	

“Operating Account”: Is defined in Section 7-3. 

 

	
 

	

“Participant”: Is defined in Section 14-14, hereof.

 

	
  

	
“Payment Intangibles”:   Has the meaning given that term in the UCC and shall also refer to any General Intangible under which the Account Debtor’s primary obligation is a monetary obligation.

 

	
 

	

“Permitted Acquisition”: The investment in, the purchase of stock of, or the purchase of all or a substantial part of the assets or properties of any Person, or the entering into of any transaction, merger (with the Borrower as the surviving entity), consolidation or exchange of securities with any Person, in which each of the following conditions are satisfied:

 

(a)           The type of business of such Person is generally the same type of business (or is included in the types of business) in which the Borrower is engaged or a business reasonably related thereto.

 

 

  

-18-

  

 

 

(b)           Immediately after giving effect to the transaction, the Liquidity Requirement is satisfied.

 

(c)           Prior to and immediately after giving effect to the transaction, no Suspension Event exists or will arise.

 

(d)           The aggregate consideration (exclusive of the value of any common equity of the Borrower issued or delivered in connection with such transaction) however classified, whether cash, property or assumption of Indebtedness, in connection with all such transactions shall not exceed $100,000,000.00 in any fiscal year.

 

(e)           All action required to be undertaken pursuant to Section 4-18(f) by any Subsidiary created in connection with such transaction has been completed to the reasonable satisfaction of the Lender.

 

	
 

	

“Permitted Encumbrances”: Those Encumbrances permitted as provided in Section 4-6(a) hereof.

 

	
 

	

“Person”: Any natural person, and any corporation, limited liability company, trust, partnership, joint venture, or other enterprise or entity.

 

	
 

	

“Prime Rate”: For any day, the higher of: (a) the variable annual rate of interest then most recently announced by Bank of America, N.A. at its head office in Charlotte, North Carolina as its  “Prime Rate”; and (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% (0.50%) per annum.  The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate being charged to any customer.  If for any reason the Lender shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate for any reason, including the inability or failure of the Lender to obtain sufficient quotations thereof in accordance with the terms hereof, the Prime Rate shall be determined without regard to clause (b) of the first sentence of this definition, until the circumstances giving rise to such inability no longer exist. Any change in the Prime Rate due to a change in Bank of America’s Prime Rate or the Federal Funds Effective Rate shall be effective on the effective date of such change in Bank of America’s Prime Rate or the Federal Funds Effective Rate, respectively.

 

	
 

	

“Proceeds”: Includes, without limitation, “Proceeds” as defined in the UCC (defined below), and each type of property described in Section 8-1 hereof.

 

	
 

	

“Receipts”: All cash, cash equivalents, checks, and credit card slips and receipts as arise out of the sale of the Collateral.

 

	
 

	

“Receivables Collateral”: That portion of the Collateral which consists of the Loan Parties’ Accounts, Accounts Receivable, General Intangibles for the payment of money, Chattel Paper, Instruments, Investment Property, letters of credit for the benefit of a Loan Party, and bankers’ acceptances held by a Loan Party, and any rights to payment.

 

 

  

-19-

  

 

 

	
 

	

"Related Entity": (a) Any corporation, limited liability company, trust, partnership, joint venture, or other enterprise which: is a parent, brother-sister, Subsidiary, or Affiliate, of the Borrower; could have such enterprise’s tax returns or financial statements consolidated with the Borrower’s; could be a member of the same controlled group of corporations (within the meaning of Section 1563(a)(1), (2) and (3) of the Internal Revenue Code of 1986, as amended from time to time) of which the Borrower is a member; controls or is controlled by the Borrower or by any Affiliate of the Borrower.

 

(b)           Any Affiliate.

 

	
 

	
"Requirement of Law": As to any Person:

 

(a)           (i)           All statutes, rules, regulations, orders, or other requirements having the force of law and (ii) all court orders and injunctions, arbitrator’s decisions, and/or similar rulings, in each instance ((i) and (ii)) of or by any federal, state, municipal, and other governmental authority, or court, tribunal, governmental panel, or other governmental body which has jurisdiction over such Person, or any property of such Person.

 

(b)           That Person’s charter, certificate of incorporation, articles of organization, and/or other organizational documents, as applicable; and

 

(c) that Person’s by-laws and/or other instruments which deal with corporate or similar governance, as applicable.

 

	
 

	

“Reserves”: Without duplication of any other reserves or items that are otherwise addressed or excluded either through eligibility criteria or in the most recent appraisal conducted hereunder by an independent appraiser reasonably satisfactory to the Lender, such reserves as the Lender from time to time determines in its reasonable discretion exercised in good faith as being necessary or appropriate (a) to reflect the impediments to the Lender’s ability to realize upon the Collateral, (b) to reflect costs, expenses and other amounts that the Lender may incur or be required to pay to realize upon the Collateral, including, without limitation, on account of rent, customs and duties and Permitted Encumbrances, (c) to reflect changes in the determination of the saleability, at retail, of Acceptable Inventory, (d) to reflect such other factors as negatively affect the market value of the Acceptable Inventory, (e) on account of gift cards, gift certificates, merchandise credits and customer deposits, (f) Cash Management Reserves, and (g) Bank Product Reserves.

 

	
 

	

“Responsible Officer”: means the chief executive officer, chief operating officer, president, chief financial officer, general counsel, chief accounting officer, treasurer, controller, vice president of finance of a Loan Party or any of the other individuals designated in writing to the Lender by an existing Responsible Officer of a Loan Party as an authorized signatory of any certificate or other document to be delivered hereunder.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

 

  

-20-

  

 

 

	
 

	

“Revolving Credit”: Is defined in Section 2-1.

 

	
 

	

“Revolving Credit Note”: Is defined in Section 2-8.

 

	
 

	

“Revolving Credit Loan”: A term of convenience which refers to so much of the unpaid principal balance of the Loan Account as bears the same rate of interest for the same Interest Period.

 

	
  

	
“Second Amendment Effective Date”:   The date upon which the conditions precedent set forth in Article 3 hereof have been satisfied or waived and this Agreement has become effective.

 

	
 

	

“Secured L/Cs”: L/Cs which have been secured in the manner provided pursuant to Section 2-19 hereof.

 

	
 

	
"Seller": Federated Specialty Stores, Inc., an Ohio corporation.

 

	
 

	

“Statutory Reserve Rate”: A fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Federal Reserve Board to which the Lender is subject with respect to the Adjusted Eurodollar Rate, for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Federal Reserve Board). Such reserve percentages shall include those imposed pursuant to such Regulation D.  Eurodollar Loans shall be deemed to constitute Eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to the Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

	
 

	

“Stated Amount”: The maximum amount for which an L/C may be honored.

 

	
  

	
“Subordinated Indebtedness”: Indebtedness the payment of principal and interest of which is expressly subordinated in right of payment to the Liabilities, in such form and on such terms (which may include the payment of current interest until the occurrence, and during the continuance, of a Suspension Event) as are reasonably acceptable to the Lender.

 

 

  

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“Subsidiary”: As to any Person, any corporation, association, partnership, limited liability company, joint venture or other business entity of which at least fifty percent (50%) or more of the ordinary voting power (or equivalent interests) for the election of a majority of the board of directors (or other equivalent governing body) of such entity is held or controlled by such Person, or by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person; or which is otherwise controlled by such Person, or by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person through the exercise of voting power or otherwise.

 

	
  

	
“Supporting Obligation”: Has the meaning given that term in the UCC and shall also refer to a Letter of Credit Right or secondary obligation that supports the payment or performance of an Account, Chattel Paper, a Document, a General Intangible, an Instrument or Investment Property.

 

	
 

	

“Suspension Event”: Any occurrence, circumstance, or state of facts which (a) is an Event of Default, which is continuing; or (b) would become an Event of Default if any requisite notice were given and/or any requisite period of time were to run and such occurrence, circumstance, or state of facts were not absolutely cured within any applicable grace period.

 

	
 

	

“Termination Date”: The earliest of (a) the Maturity Date; or (b) the occurrence of any event described in Section 10-12 hereof; or (c) date set by notice by the Lender to the Borrower, which notice sets the Termination Date on account of the occurrence of any Event of Default other than as described in Section 10-12 hereof.

 

	
  

	
“Trust Deposit Accounts”:  Depository accounts established by the Loan Parties the proceeds of which are to be utilized solely for the payment of sales taxes, ad valorem taxes, withholding taxes and other similar taxes, and other depository accounts established by the Loan Parties for which such Loan Party is a trustee or other fiduciary for any other Persons.

 

	
 

	

“UCC”: The Uniform Commercial Code as presently in effect in Massachusetts, provided, however, that if a term is defined in Article 9 of the Uniform Commercial Code differently than in another Article thereof, the term shall have the meaning set forth in Article 9; providedfurther that, if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of a security interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than Massachusetts, “Uniform Commercial Code” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be.

 

	
 

	

“Unreimbursed L/C Obligations”: The then unpaid reimbursement obligations in respect of L/Cs which have been drawn, but which have not been repaid either by an advance under the Revolving Credit in accordance with the provisions of Section 2-17(e) hereof or otherwise.

 

 

  

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Article 2 - The Revolving Credit:

 

2-1. Establishment of  Revolving Credit.

 

(a) The Lender hereby establishes a revolving line of credit (the “Revolving Credit”) in the Borrower’s favor pursuant to which the Lender, subject to, and in accordance with, this Agreement, shall make loans and advances and otherwise provide financial accommodations to and for the account of the Borrower as provided herein, up to the maximum amount of the Lender’s Dollar Commitment; provided that the outstanding amount of Revolving Credit Loans and the Stated Amount of L/Cs shall not at any time in the aggregate exceed the lesser of (A) the Loan Ceiling, or (B) the Borrowing Base.

 

(b) The proceeds of borrowings under the Revolving Credit shall be used solely for working capital and general corporate purposes of the Borrower, including, without limitation, the repurchase of the Borrower’s capital stock, and for its Capital Expenditures, all solely to the extent permitted by this Agreement.

 

2-2. Intentionally Omitted.

 

2-3. Intentionally Omitted.

 

2-4. Risks of Value of Collateral»

 

.           The Lender’s reference to a given asset in connection with the making of loans, credits, and advances and the providing of financial accommodations under the Revolving Credit and/or the monitoring of compliance with the provisions hereof shall not be deemed a determination by the Lender relative to the actual value of the asset in question.  All risks concerning the collectability of the Borrower’s Accounts and the saleability of the Borrower’s Inventory are and remain upon the Borrower.  All Collateral secures the prompt, punctual, and faithful performance of the Liabilities whether or not relied upon by the Lender in connection with the making of loans, credits, and advances and the providing of financial accommodations under the Revolving Credit.

 

2-5. Loan Requests.

 

(a) Subject to the provisions of this Agreement, a loan or advance under the Revolving Credit duly and timely requested by the Borrower shall be made pursuant hereto, provided that:

 

(i) Availability will not be exceeded;

 

(ii) If Aggregate Outstandings exceed $75,000,000, no loans, advances or other financial accommodations shall be made if as a result thereof the Aggregate Outstandings would exceed $100,000,000 until such time as the Lender has completed, and received the results of a commercial finance audit and inventory appraisal in accordance with the provisions of Section 5-10 hereof.

 

 

  

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(iii) The Revolving Credit has not been suspended as provided in Section 2-5(h).

 

(b) Requests for loans and advances under the Revolving Credit may be requested by the Borrower in such manner as may from time to time be reasonably acceptable to the Lender.

 

(c) Subject to the provisions of this Agreement, the Borrower may request a Revolving Credit Loan and elect an interest rate and Interest Period to be applicable to that Revolving Credit Loan by giving the Lender notice no later than the following:

 

(i) If such Revolving Credit Loan is or is to be converted to a Base Rate Loan: By 1:00 PM on the Business Day on which the subject Revolving Credit Loan is to be made or is to be so converted.  Base Rate Loans requested by the Borrower, other than those resulting from the conversion of a Eurodollar Loan, shall not be less than $10,000.00 (or the then Availability if less than $10,000.00).

 

(ii) If such Revolving Credit Loan is, or is to be continued as, or converted to, a Eurodollar Loan: By 1:00 PM two (2) Eurodollar Business Days before the end of the then applicable Interest Period.  Eurodollar Loans and conversions to Eurodollar Loans shall each be not less than $1,000,000.00 and in increments of $1,000,000.00 in excess of such minimum.

 

(iii) Any Eurodollar Loan which matures while a Suspension Event is extant shall be converted, at the option of the Lender to a Base Rate Loan notwithstanding any notice from the Borrower that such Loan is to be continued as a Eurodollar Loan.

 

(d) Any request for a Revolving Credit Loan or for the conversion of a Revolving Credit Loan which is made after the applicable deadline therefor, as set forth above, shall be deemed to have been made at the opening of business on the then next Business Day or Eurodollar Business Day, as applicable.  Each request for a Revolving Credit Loan or for the conversion of a Revolving Credit Loan shall be made in such manner as may from time to time be reasonably acceptable to the Lender

 

(e) The Borrower may request that the Lender cause the issuance of L/C’s for the account of the Borrower as provided in Section 2-17.

 

(f) The Lender may rely on any request for a loan or advance, or other financial accommodation under the Revolving Credit which the Lender, in good faith, reasonably believes to have been made by a Person duly authorized to act on behalf of the Borrower and may decline to make any such requested loan or advance, or issuance, or to provide any such financial accommodation pending the Lender’s being furnished with such documentation concerning that Person’s authority to act as may be reasonably satisfactory to the Lender.

 

(g) A request by the Borrower for loan or advance, or other financial accommodation under the Revolving Credit shall be irrevocable and shall constitute certification by the Borrower that as of the date of such request, each of the following is true and correct:

 

 

  

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(i) There has been no material adverse change in the Borrower’s financial condition from the most recent financial information furnished to the Lender pursuant to this Agreement.

 

(ii) All or a portion of any loan or advance so requested will be set aside by the Borrower to cover all of the Borrower’s obligations for sales tax on account of sales since the then most recent borrowing pursuant to the Revolving Credit.

 

(iii) Each representation which is made herein or in any of the Loan Documents (defined below) is then true and complete in all material respects as of and as if made on the date of such request (other than those which are as of a specific date, in which case such representation was true and complete in all material respects as of such date).

 

(iv) No Suspension Event is then extant.

 

(h) Upon the occurrence, and during the continuance, from time to time of any Suspension Event:

 

(i) The Lender may suspend the Revolving Credit immediately.

 

(ii) The Lender shall not be obligated, during such suspension, to make any loans or advance, or to provide any financial accommodation hereunder or to seek the issuance of any L/C.

 

(iii) The Lender may suspend the right of the Borrower to request any Eurodollar Loan or to convert any Base Rate Loan to a Eurodollar Loan.

 

2-6. Making of Loans Under Revolving Credit.

 

(a) A loan or advance under the Revolving Credit  shall be made by the transfer of the proceeds of such loan or advance to the Operating Account or as otherwise instructed by the Borrower.

 

(b) A loan or advance shall be deemed to have been made under the Revolving Credit (and the Borrower shall be indebted to the Lender for the amount thereof immediately) at the following:

 

(i) The Lender’s initiation of the transfer of the proceeds of such loan or advance in accordance with the Borrower’s instructions (if such loan or advance is of funds requested by the Borrower).

 

(ii) The charging of the amount of such loan to the Loan Account (in all other circumstances).

 

(c) There shall not be any recourse to or liability of the Lender, on account of:

 

 

  

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(i) Any delay in the making of any loan or advance requested under the Revolving Credit unless due to the Lender’s gross negligence or willful misconduct.

 

(ii) Any delay in the proceeds of any such loan or advance constituting collected funds.

 

(iii) Any delay in the receipt, and/or any loss, of funds which constitute a loan or advance under the Revolving Credit, the wire transfer of which was properly initiated by the Lender in accordance with wire instructions provided to the Lender by the Borrower.

 

2-7. The Loan Account.

 

(a) An account (“Loan Account”) shall be opened on the books of the Lender. A record may be kept in the Loan Account of all loans made under or pursuant to this Agreement and of all payments thereon.

 

(b) The Lender may also keep a record (either in the Loan Account or elsewhere, as the Lender may from time to time elect) of all interest, fees, service charges, costs, expenses, and other debits owed the Lender on account of the Liabilities and of all credits against such amounts so owed.

 

(c) All credits against the Liabilities shall be conditional upon final payment to the Lender of the items giving rise to such credits.  The amount of any item credited against the Liabilities which is charged back against the Lender for any reason or is not so paid shall be a Liability and shall be added to the Loan Account, whether or not the item so charged back or not so paid is returned.

 

(d) Except as otherwise provided herein, all fees, service charges, costs, and expenses for which the Borrower is obligated hereunder are payable on demand.

 

(e) The Lender, without the request of the Borrower, may advance under the Revolving Credit any interest, fee, service charge, or other payment to which the Lender is entitled from the Borrower pursuant hereto and may charge the same to the Loan Account notwithstanding that such amount so advanced may result in Availability’s being exceeded.  Such action on the part of the Lender shall not constitute a waiver of the Lender’s rights and Borrower’s obligations under Section 2-9(b). Any amount which is added to the principal balance of the Loan Account as provided in this Section 2-7(e) shall bear interest, subject to Section 2-10(f), at the Prime Rate.

 

(f) Absent manifest error, any statement rendered by the Lender to the Borrower concerning the Liabilities shall be considered correct and accepted by the Borrower and shall be conclusively binding upon the Borrower unless the Borrower provides the Lender with written objection thereto within sixty (60) days from the receipt of such statement, which written objection shall indicate, with particularity, the reason for such objection.  The Loan Account and the Lender’s books and records concerning the loan arrangement contemplated herein and the Liabilities shall be prima facie evidence and proof of the items described therein.

 

 

  

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2-8. The Revolving Credit Notes»

 

.  The obligation to repay loans and advances under the Revolving Credit, with interest as provided herein, shall be evidenced by a promissory note (a “Revolving Credit Note”) in the form of EXHIBIT 2-8, annexed hereto, executed by the Borrower.  Neither the original nor a copy of the Revolving Credit Note shall be required, however, to establish or prove any Liability.  In the event that the Revolving Credit Note is ever lost, mutilated, or destroyed, upon receipt of an indemnification with respect to the lost Revolving Credit Note from the Lender in form and substance reasonably satisfactory to the Borrower and the Lender, the Borrower shall execute a replacement thereof and deliver such replacement to the Lender.

 

2-9. Payment of The Loan Account.

 

(a) The Borrower may repay all or any portion of the principal balance of the Loan Account from time to time until the Termination Date. Such payments shall be applied first to Base Rate Loans and only then to Eurodollar Loans.

 

(b) The Borrower, without notice or demand from the Lender, shall pay the Lender that amount, from time to time, which is necessary so that the unpaid balance of the Loan Account does not exceed Availability. Such payments shall be applied first to Base Rate Loans and only then to Eurodollar Loans.

 

(c) Subject to the provisions of Section 7-5(c) hereof, the Lender shall endeavor to cause those applications of payments (if any), pursuant to Sections 2-9(a) and 2-9(b) against Eurodollar Loans then outstanding in such manner as results in the least cost to the Borrower, but shall not have any affirmative obligation to do so nor liability on account of the Lender’s failure to have done so.  In no event shall action or inaction taken by the Lender excuse the Borrower from any indemnification obligation under Section 2-9(e).

 

(d) The Borrower shall repay the then entire unpaid balance of the Loan Account and all other Liabilities on the Termination Date.

 

(e) The Borrower shall indemnify the Lender and hold the Lender harmless from and against any loss, cost or expense (excluding loss of anticipated profits) which the Lender may sustain or incur (including, without limitation, by virtue of acceleration after the occurrence of any Event of Default) as a consequence of the following:

 

(i) Default by the Borrower in payment of the principal amount of or any interest on any Eurodollar Loan as and when due and payable, including any such loss or expense arising from interest or fees payable by the Lender to lenders of funds obtained by it in order to maintain its Eurodollar Loans.

 

(ii) Default by the Borrower in making a borrowing or conversion after the Borrower has given (or is deemed to have given) a request for a Revolving Credit Loan or a request to convert a Revolving Credit Loan from one applicable interest rate to another.

 

(iii) The making of any payment on a Eurodollar Loan or the making of any conversion of any such Loan to a Base Rate Loan on a day that is not the last day of the applicable Interest Period with respect thereto, including interest or fees payable by the Lender to lenders of funds obtained by it in order to maintain any such Loans as “breakage fees” (so-called).

 

 

  

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2-10. Interest Rates.

 

(a) Each Revolving Credit Loan shall bear interest at the Prime Rate plus the Applicable Margin for Base Rate Loans unless timely notice is given (as provided in Section 2-5(a)) that the subject Revolving Credit Loan (or a portion thereof) is, or is to be converted to, a Eurodollar Loan.

 

(b) Each Revolving Credit Loan which consists of a Eurodollar Loan shall bear interest at the Adjusted Eurodollar Rate plus the Applicable Margin for Eurodollar Loans.

 

(c) Subject to the provisions hereof, the Borrower, by notice to the Lender, may cause all or a part of the unpaid principal balance of the Loan Account to bear interest at the Prime Rate or the Adjusted Eurodollar Rate as specified from time to time by the Borrower.

 

(d) The Borrower shall not select, renew, or convert any interest rate for a Revolving Credit Loan such that, in addition to interest at the Prime Rate, there are more than six (6) Interest Periods for Eurodollar Loans applicable to the Revolving Credit Loans at any one time.

 

(e) The Borrower shall pay accrued and unpaid interest on each Revolving Credit Loan in arrears as follows:

 

(i) On the applicable Interest Payment Date for that Revolving Credit Loan.

 

(ii) On the Termination Date and on the End Date.

 

(iii) Following the occurrence, and during the continuance, of any Event of Default, with such frequency as may be determined by the Lender.

 

(f) Following the occurrence, and during the continuance, of any Default Interest Event (and whether or not the Lender exercises the Lender’s rights on account thereof), all Revolving Credit Loans shall bear interest, at the option of the Lender, at a rate which is the aggregate of the interest rate then in effect plus two percent (2%) per annum.

 

(g) All computations of interest for Base Rate Loans shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).

 

2-11. Additional Fees.

 

 

  

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In addition to any other fee paid by Borrower on account of the Revolving Credit, the Borrower shall pay the Lender a Line (Unused) Fee (so referred to herein) in arrears, on the first day of each month, commencing with the first month immediately following the Second Amendment Effective Date (and on the Termination Date).  The Line (Unused) Fee shall be equal to Applicable Margin for Line (Unused) Fee per annum multiplied by the difference during the month just ended (or relevant period with respect to the payment being made on the Termination Date) between Loan Ceiling and the Average Outstandings.

 

2-12. Intentionally Omitted.

 

2-13. Line (Unused Fee).

 

In addition to any other fee paid by Borrower on account of the Revolving Credit, the Borrower shall pay the Lender a Line (Unused) Fee (so referred to herein) in arrears, on the first day of each month, commencing with the first month immediately following the Second Amendment Effective Date (and on the Termination Date).  The Line (Unused) Fee shall be equal to Applicable Margin for Line (Unused) Fee per annum multiplied by the difference during the month just ended (or relevant period with respect to the payment being made on the Termination Date) between Loan Ceiling and the Average Outstandings.

 

2-14. Intentionally Omitted

 

2-15. Concerning Fees.

 

The Borrower shall not be entitled to any credit, rebate or repayment of the Commitment Fee, Line (Unused) Fee or other fee previously earned by the Lender pursuant to this Agreement notwithstanding any termination of this Agreement or suspension or termination of the Lender’s obligation to make loans and advances hereunder.

 

2-16. Lender’s Discretion.

 

Each reference in the Loan Documents to the exercise of discretion or the like by the Lender shall be to its exercise of its reasonable judgement, in good faith, based upon the Lender’s consideration of any such factor as the Lender reasonably deems appropriate.

 

2-17. Procedures For Issuance of L/C’s.

 

(a) The Borrower may request that the Lender cause the issuance of L/C’s for the account of the Borrower.  Each such request shall be in such manner as may from time to time be acceptable to the Lender.

 

(b) Subject to the provisions of Section 2.5(a)(ii), the Lender will endeavor to cause the issuance of any L/C so requested by the Borrower, provided that, at the time that the request is made, the Revolving Credit has not been suspended as provided in Section 2-5(h) and if so issued:

 

(i) The aggregate Stated Amount of all L/C’s then outstanding, does not exceed Forty Million Dollars and No Cents ($40,000,000.00).

 

 

  

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(ii) The expiry of the L/C is not later than the Maturity Date.

 

(iii) Availability would not be exceeded.

 

(iv) Intentionally Omitted.

 

(c) The Borrower shall execute such documentation to apply for and support the issuance of an L/C as may be reasonably required by the Issuer.

 

(d) There shall not be any recourse to, nor liability of, the Lender on account of

 

(i) Any delay by an Issuer to issue an L/C;

 

(ii) Any action or inaction of an Issuer on account of or in respect to, any L/C.

 

(e) The Borrower shall reimburse the Issuer for the amount of any drawing under an L/C on the same Business Day of such drawing.  The Lender, without the request of the Borrower, may advance under the Revolving Credit (and charge to the Loan Account) the amount of any honoring of any L/C and other amount for which the Borrower, the Issuer, or the Lenders become obligated on account of, or in respect to, any L/C.  Such advance shall be made whether or not a Suspension Event is then extant or such advance would result in Availability’s being exceeded.  Such action shall not constitute a waiver of the Lender’s rights under Section 2-9(b) hereof.

 

2-18. Fees For L/C’s.

 

(a) The Borrower shall pay to the Lender a fee, on account of L/C’s, the issuance of which had been procured by the Lender, monthly in arrears, and on the Termination Date and on the End Date, equal to the following per annum percentages of the average face amount of the following categories of Letters of Credit outstanding during the three month period then ended:

 

(i) Standby Letters of Credit: At a per annum rate equal to the then Applicable Margin for Eurodollar Loans;

 

(ii) Commercial Letters of Credit: At a per annum rate equal to fifty percent (50%) of the then Applicable Margin for Eurodollar Loans.

 

(iii) After the occurrence and during the continuance of an Event of Default, effective upon written notice from the Lender, the L/C fees shall be increased by an amount equal to two percent (2%) per annum.

 

(b) In addition to the fee to be paid as provided in Subsection 2-18(a), above, the Borrower shall pay to the Lender (or to the Issuer, if so requested by Lender), on demand, all issuance, processing, negotiation, amendment, and administrative fees and other amounts charged by the Issuer on account of, or in respect to, any L/C.

 

 

  

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2-19. Cash Collateralization of L/Cs.

 

(a) With respect to L/Cs with a scheduled expiry after the Maturity Date, thirty (30) days prior to the Maturity Date, and

 

(b)           with respect to all L/Cs, upon the Lender’s request after the occurrence, and during the continuance, of any Event of Default hereunder,

 

the Borrower shall deposit in an account with the Lender, an amount in cash equal to 103% of the then Stated Amount of all outstanding L/Cs.  Such deposit shall be held by the Lender as collateral for the payment and performance of the Liabilities.  The Lender shall have the exclusive dominion and control over such account.  Such deposits shall not bear interest.  Monies in such account shall be automatically applied by the Lender to reimburse the Issuer for any honoring of any L/Cs, together with any other amounts owed to the Issuer, and after all L/Cs have been so reimbursed or otherwise expired, any remaining balance shall be applied in reduction of the Liabilities.  In lieu of depositing such cash with the Lender the Borrower may furnish the Lender, with a so-called “back-to-back” letter of credit in form and substance and issued by a bank reasonably satisfactory to the Lender in its sole and absolute discretion, in an amount equal to 103% of the then Stated Amount of all outstanding L/Cs.  Drawings under such “back-to-back” letters of credit shall be applied by the Lender to the Liabilities in the manner set forth above with respect to the cash collateral account.  If no Event of Default then exists, the cash collateral deposited with the Lender and/or the amount of the “back-to-back” letters of credit may be reduced by an amount equal to any reduction from time to time in the Stated Amount of all outstanding L/Cs (other than on account of drawings thereunder).

 

2-20. Concerning L/C’s.

 

(a) None of the Issuer, the Issuer’s correspondents, or any advising, negotiating, or paying bank with respect to any L/C shall be responsible in any way for:

 

(i) The performance by any beneficiary under any L/C of that beneficiary’s obligations to the Borrower.

 

(ii) The form, sufficiency, correctness, genuineness, authority of any person signing; falsification; or the legal effect of; any documents called for under any L/C if (with respect to the foregoing) such documents on their face appear to be in order, except to the extent that such Issuer, Issuer’s correspondents, or advising, negotiating, or paying bank has actual knowledge of any of the foregoing.

 

(b) The Issuer may honor, as complying with the terms of any L/C and of any drawing thereunder, any drafts or other documents otherwise in order, but signed or issued by an administrator, executor, conservator, trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors, liquidator, receiver, or other legal representative of the party authorized under such L/C to draw or issue such drafts or other documents.

 

 

  

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(c) Unless otherwise agreed to, in the particular instance, the Borrower hereby authorizes any Issuer to:

 

(i) Select an advising bank, if any.

 

(ii) Select a paying bank, if any.

 

(iii) Select a negotiating bank.

 

(d) All directions, correspondence, and funds transfers relating to any L/C are at the risk of the Borrower.  The Issuer shall have discharged the Issuer’s obligations under any L/C which, or the drawing under which, includes payment instructions, by the initiation of the method of payment called for in, and in accordance with, such instructions (or by any other commercially reasonable and comparable method). Neither the Lender nor the Issuer shall have any responsibility for any inaccuracy, interruption, error, or delay in transmission or delivery by post, telegraph or cable, or for any inaccuracy of translation, except for their gross negligence or willful misconduct.

 

(e) The Lender’s, and the Issuer’s rights, powers, privileges and immunities specified in or arising under this Agreement are in addition to any heretofore or at any time hereafter otherwise created or arising, whether by statute or rule of law or contract.

 

(f) Except to the extent otherwise expressly provided hereunder or agreed to in writing by the Issuer and the Borrower, (i) the rules of the ISP shall apply to each standby L/C, and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of issuance shall apply to each commercial L/C.

 

(g) If any change in any law, executive order or regulation, or any directive of any administrative or governmental authority (whether or not having the force of law), or in the interpretation thereof by any court or administrative or governmental authority charged with the administration thereof, shall either:

 

(i) impose, modify or deem applicable any reserve, special deposit or similar requirements against letters of credit heretofore or hereafter issued by any Issuer or with respect to which the Lender, any or any Issuer has an obligation to lend to fund drawings under any L/C; or

 

(ii) impose on any Issuer any other condition or requirements relating to any such letters of credit;

 

and the result of any event referred to in Section 2-20(g)(i) or 2-20(g)(ii), above, shall be to increase the cost to any Issuer of issuing or maintaining any L/C (which increase in cost shall be the result of such Issuer’s reasonable allocation among that Issuer’s letter of credit customers of the aggregate of such cost increases resulting from such events), then, upon demand by the Lender and delivery by the Lender to the Borrower of a certificate of an officer of the subject Issuer describing such change in law, executive order, regulation, directive, or interpretation thereof, its effect on such Issuer, and the basis for determining such increased costs and their allocation, the Borrower shall immediately pay to the Lender, from time to time as specified by the Lender, such amounts as shall be sufficient to compensate such Issuer for such increased cost;  provided that the Borrower shall not be obligated to make payment of such amounts which arise from transactions which occurred more than ninety (90) Business Days prior to the Lender’s furnishing notice hereunder.   Any Issuer’s determination of costs incurred under Section 2-20(g)(i) or 2-20(g)(ii), above, and the allocation, if any, of such costs among the Borrower and other letter of credit customers of such Issuer, if done in good faith and made on an equitable basis and in accordance with such officer’s certificate, shall be conclusive and binding on the Borrower, absent manifest error.

 

 

  

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(h) The obligations of the Borrower under this Agreement with respect to L/C’s are absolute, unconditional, and irrevocable and shall be performed strictly in accordance with the terms hereof under all circumstances, whatsoever including, without limitation, the following:

 

(i) Any lack of validity or enforceability or restriction, restraint, or stay in the enforcement of this Agreement, any L/C, or any other agreement or instrument relating thereto.

 

(ii) Any amendment or waiver of, or consent to the departure from, any L/C.

 

(iii) The existence of any claim, set-off, defense, or other right which the Borrower may have at any time against the beneficiary of any L/C.

 

2-21. Changed Circumstances.

 

(a) The Lender may give the Borrower notice of the occurrence of the following:

 

(i) The Lender shall have determined in good faith (which determination shall be final and conclusive) on any day on which the rate for a Eurodollar Loan would otherwise be set, that adequate and fair means do not exist for ascertaining such rate.

 

(ii) The Lender shall have determined in good faith (which determination shall be final and conclusive) that:

 

(A) The continuation of or conversion of any Revolving Credit Loan to a Eurodollar Loan has been made impracticable or unlawful by the occurrence of a contingency that materially and adversely affects the applicable market or compliance by the Lender in good faith with any applicable law or governmental regulation, guideline or order or interpretation or change thereof by any governmental authority charged with the interpretation or administration thereof or with any request or directive of any such governmental authority (whether or not having the force of law).

 

 

 

  

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(B) The indices on which the interest rates for Eurodollar Loans are based shall no longer represent the effective cost to the Lender for U.S. dollar deposits in the interbank market for deposits in which it regularly participates.

 

(b) In the event that the Lender gives the Borrower notice of an occurrence described in Section 2-21(a), then, until the Lender notifies the Borrower that the circumstances giving rise to such notice no longer apply:

 

(i) The obligation of the Lender to make Eurodollar Loans of the type affected by such changed circumstances or to permit the Borrower to select the affected interest rate as otherwise applicable to any Revolving Credit Loans shall be suspended.

 

(ii) Any notice which the Borrower had given the Lender with respect to any Eurodollar Loan, the time for action with respect to which has not occurred prior to the Lender’s having given notice pursuant to Section 2-21(a), shall be deemed to be a request for a Base Rate Loan.

 

(c) Notwithstanding the foregoing, the Lender agrees to use its reasonable efforts (consistent with its internal policy and legal and regulatory restrictions and so long as such efforts would not be disadvantageous to it, in its reasonable discretion, in any legal, economic or regulatory manner) to designate a different lending office if the making of such designation would allow the Lender or its lending office to continue to make Eurodollar Loans.

 

2-22. Increased Costs»

 

.  If there is adopted after the date hereof any requirement of law, or if there is any new interpretation or application of any law after the date hereof by any court or by any governmental or other authority or entity charged with the administration thereof, whether or not having the force of law, which:

 

(a) subjects the Lender to any taxes or changes the basis of taxation, or increases any existing taxes, on payments of principal, interest or other amounts payable by the Borrower to the Lender under this Agreement (except for taxes on the Lender’s overall net income or capital imposed by the jurisdiction in which the Lender’s principal or lending offices are located or in which the Lender is organized);

 

(b) imposes, modifies or deems applicable any reserve, cash margin, special deposit or similar requirements against assets held by, or deposits in or for the account of or loans by or any other acquisition of funds by the relevant funding office of the Lender;

 

(c) imposes on the Lender any other condition with respect to any Loan Document; or

 

(d) imposes on the Lender a requirement to maintain or allocate capital in relation to the Liabilities;

 

and the result of any of the foregoing, in the Lender’s reasonable opinion, is to increase the cost to the Lender of making or maintaining any loan, advance or financial accommodation or to reduce the income receivable by the Lender in respect of any loan, advance or financial accommodation by an amount which the Lender deems to be material, then upon the Lender’s giving written notice thereof to the Borrower (such notice to set out in reasonable detail the facts giving rise to and a summary calculation of such increased cost or reduced income), the Borrower shall forthwith pay to the Lender, upon receipt of such notice, that amount which shall compensate the Lender for such additional cost or reduction in income, provided that the Borrower shall not be obligated to make payment of such amounts which arise from transactions which occurred more than ninety (90) Business Days prior to the Lender’s furnishing notice hereunder.

 

 

  

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Notwithstanding the foregoing, the Lender agrees to use its reasonable efforts (consistent with its internal policy and legal and regulatory restrictions and so long as such efforts would not be disadvantageous to it, in its reasonable discretion, in any legal, economic or regulatory manner) to designate a different lending office if the making of such designation would allow the Lender or its lending office to avoid the imposition of such increased costs.

 

2-23. Lender’s Commitments.

 

(a) The Dollar Commitments, Commitment Percentages, and identities of the Lenders (but not the overall Commitment) may be changed, from time to time by the  assignment of Dollar Commitments and Commitment Percentages with other Persons who determine to become “Lenders”, provided, however, that

 

(i) Unless an Event of Default has occurred and is continuing (in which event, no consent of the Borrower is required) any assignment (other than an assignment to a then Lender) shall be subject to the prior consent of the Borrower (not to be unreasonably withheld), which consent will be deemed given unless the Borrower provides the Lender with written objection, not more than five (5) Business Days after the Lender shall have given the Borrower written notice of a proposed assignment).

 

(ii) Any such assignment or reallocation shall be on a pro-rata basis such that each reallocated or assigned Dollar Commitment to any Person remains the same percentage of the overall Commitment (in terms of dollars) as the reallocated Commitment Percentage is to such Person.

 

(iii) No such assignment shall be in an amount less than Ten Million Dollars ($10,000,000.00), or, if less, the total Dollar Commitment of such assigning Lender.

 

(b) Upon written notice given the Borrower from time to time by the Lender, of any assignment or allocation referenced in Section 2-23(a):

 

(i) The Borrower shall execute replacement one or more Revolving Credit Notes to reflect such changed Dollar Commitments, Commitment Percentages, and identities and shall deliver such replacement Revolving Credit Notes to the Lender (which promptly thereafter shall deliver to the Borrower the Revolving Credit Notes so replaced) provided however, in the event that a Revolving Credit Note is to be exchanged following its acceleration or the entry of an order for relief under the Bankruptcy Code with respect to the Borrower, the Lender, in lieu of causing the Borrower to execute one or more new Revolving Credit Notes, may issue the Lender’s Certificate confirming the resulting Commitments and Commitment Percentages.

 

 

  

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(ii) Such change shall be effective from the effective date specified in such written notice and any Person added as a Lender shall have all rights and privileges of a Lender hereunder thereafter as if such Person had been a signatory to this Agreement and any other Loan Document to which a Lender is a signatory and any person removed as a Lender shall be relieved of any obligations or responsibilities of a Lender hereunder thereafter.

 

(iii) The Borrower shall maintain a register identifying the Lenders from time to time.

 

(c) Intentionally Omitted.

 

Article 3 - Conditions Precedent:

 

3-1. As a condition to the effectiveness of this Agreement, the establishment of the Revolving Credit, and the making of the first loan under the Revolving Credit, each of the documents respectively described in Sections 3-2 through and including 3-5, (each in form and substance reasonably satisfactory to the Lender) shall have been delivered to the Lender, and the conditions respectively described in Sections 3-6 through and including 3-15, shall have been satisfied:

 

3-2. Corporate Due Diligence.

 

(a) A Certificate of corporate good standing issued by the Secretary of State of each State in which a Loan Party is organized.

 

(b) Certificates of due qualification, in good standing, issued by the Secretary(ies) of State of each State in which the nature of a Loan Party’s business conducted or assets owned would reasonably be expected to require such qualification.

 

(c) A Certificate of each Loan Party’s Secretary of the due adoption, continued effectiveness, and setting forth the texts of, each corporate resolution adopted in connection with the establishment of the loan arrangement contemplated by the Loan Documents and attesting to the true signatures of each Person authorized as a signatory to any of the Loan Documents.

 

3-3. Opinion. An opinion of counsel to the Loan Parties in form and substance reasonably satisfactory to the Lender.

 

3-4. Additional Documents.Such additional instruments and documents as the Lender or its counsel reasonably may require or request.

 

3-5. Officers’ Certificates.  Certificates executed by the President and the Chief Financial Officer of the Borrower and stating that the representations and warranties made by the Loan Parties to the Lender in the Loan Documents are true and complete in all material respects as of the date of such Certificate, and that no event has occurred which is or which, solely with the giving of notice or passage of time (or both) would be an Event of Default.

 

 

  

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3-6. Representations and Warranties.  Each of the representations made by or on behalf of the Loan Parties in this Agreement or in any of the other Loan Documents or in any other report, statement, document, or paper provided by or on behalf of a Loan Party shall be true and complete in all material respects as of the date as of which such representation or warranty was made.

 

3-7. Borrowing Base Certificate.  The Lender shall have received a Borrowing Base Certificate dated the Closing Date, relating to the month ended on October 31, 2007, and executed by a Responsible Officer of the Borrower.

 

3-8. All Fees and Expenses Paid.  All fees due at or immediately after the first funding under the Revolving Credit and all costs and expenses reasonably incurred by the Lender in connection with the establishment of the credit facility contemplated hereby (including the reasonable fees and expenses of counsel to the Lender) shall have been paid (to the extent then invoiced).

 

3-9. Financial Projections.  The Lender shall have received and be satisfied with a detailed forecast for the period commencing on the Closing Date through the fiscal year ending on or about January 31, 2009, which shall include an Availability model, Consolidated income statement, balance sheet, and statement of cash flow, by quarter, each prepared in conformity with GAAP and consistent with the Borrower’s current practices.

 

3-10. Borrower’s Assets.  The Lender shall have received a copy of the results of the Loan Parties’ most recent physical inventory and such results shall be reasonably satisfactory to the Lender.  In addition, the Lender shall be reasonably satisfied that the inventory of each Loan Party is located at such places or is in transit to such Loan Party and is in the amounts and of the quality and value previously represented by the Borrower to the Lender and the Lender shall have received such reports, material and other information concerning the inventory and the Loan Parties’ suppliers as shall reasonably satisfy the Lender in its sole discretion.

 

3-11. Lien Search.  The Lender shall have received results of searches or other evidence satisfactory to the Lender (in each case dated as of a date reasonably satisfactory to the Lender) indicating the absence of liens on the assets of the Loan Parties, except for Permitted Encumbrances and liens for which termination statements and releases reasonably satisfactory to the Lender are being tendered concurrently with the establishment of the Revolving Credit.

 

3-12. Perfection of Collateral.  The Lender shall have filed all such financing statements and given all such notices as may be necessary for the Lender to perfect its security interest in such of the Collateral as to which the Lender determines to perfect its security interests and to assure its first priority status (subject only to Permitted Encumbrances).

 

3-13. Insurance.  The Lender shall be reasonably satisfied with the Loan Parties’ insurance arrangements and shall have received all documentation requested in connection with such insurance including, documentation naming the Lender as “loss payee” under each policy.

 

 

  

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3-14. No Suspension Event.  No Suspension Event shall then exist.

 

3-15. No Adverse Change.  No event shall have occurred or failed to occur, which occurrence or failure reasonably would be expected to have a Material Adverse Effect.

 

3-16. Execution and Delivery of Agreement.  This Agreement shall have been duly executed and delivered by the parties hereto, and shall be in full force and effect and shall be in form and substance satisfactory to the Lender.

 

No document shall be deemed delivered to the Lender until received and accepted by the Lender at its head offices in Boston, Massachusetts.  Under no circumstances will this Agreement take effect until executed and accepted by the Lender at said head office.

 

Article 4 - General Representations, Covenants and Warranties:

 

To induce the Lender to establish the loan arrangement contemplated herein and to make loans and advances and to provide financial accommodations under the Revolving Credit (each of which loans shall be deemed to have been made in reliance thereupon), the Borrower, in addition to all other representations, warranties, and covenants made by the Borrower in any other Loan Document, makes those representations, warranties, and covenants included in this Agreement.

 

4-1. Payment and Performance of Liabilities.  The Borrower shall pay each Liability when due (or when demanded if payable on demand) and shall promptly, punctually, and faithfully perform each other Liability.

 

4-2. Due Organization - Corporate Authorization - No Conflicts.

 

(a) Each Loan Party presently is and shall hereafter remain in good standing in its State of organization and each is and shall hereafter remain duly qualified and in good standing in every other State in which, by reason of the nature or location of the Loan Parties’ assets or operation of the Loan Parties’ business, such qualification is necessary, except where the failure to so qualify would not have a Material Adverse Effect.

 

(b) Each Related Entity as of the date hereof is listed on EXHIBIT 4-2, annexed hereto.  Each Subsidiary is and shall hereafter remain in good standing in the State in which incorporated and is and shall hereafter remain duly qualified in which other State in which, by reason of that entity’s assets or the operation of such entity’s business, such qualification may be necessary, except where the failure to so qualify would not reasonably be expected to have a Material Adverse Effect.  The Borrower shall provide the Lender with prior written notice of any entity’s becoming or ceasing to be a Related Entity.

 

(c) No Loan Party shall change its State of incorporation or its taxpayer identification number.

 

(d) Each Loan Party has all requisite corporate power and authority to execute and deliver all Loan Documents to which such Loan Party is a party and has and will hereafter retain all requisite corporate power to perform all Liabilities.

 

 

  

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(e) The execution and delivery by the Loan Parties of each Loan Document to which it is a party; the Loan Parties’ consummation of the transactions contemplated by such Loan Documents (including, without limitation, the creation of security interests by the Loan Parties as contemplated hereby); each Loan Party’s performance under those of the Loan Documents to which it is a party; the borrowings hereunder; and the use of the proceeds thereof:

 

(i) Have been duly authorized by all necessary corporate action.

 

(ii) Do not, and will not, contravene in any material respect any provision of any Requirement of Law or obligation of such Loan Party.

 

(iii) Will not result in the creation or imposition of, or the obligation to create or impose, any Encumbrance upon any assets of a Loan Party pursuant to any Requirement of Law or obligation, except pursuant to the Loan Documents.

 

(f) The Loan Documents have been duly executed and delivered by each Loan Party and are the legal, valid and binding obligations of the Loan Parties enforceable against the Loan Parties in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting the rights and remedies of creditors generally and except as the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought.

 

4-3. Trade Names.

 

(a) EXHIBIT 4-3, annexed hereto, is a listing of:

 

(i) All names under which the Loan Parties conducted their business within the past five (5) years.

 

(ii) All entities and/or persons with whom the Loan Parties consolidated or merged within the past five (5) years, or from whom the Loan Parties, within the past five (5) years, acquired in a single transaction or in a series of related transactions substantially all of such entity’s or person’s assets.

 

(b) No Loan Party will change its name or conduct its business under any name not listed on EXHIBIT 4-3 except (i) upon not less than twenty-one (21) days prior written notice (with reasonable particularity) to the Lender and (ii) in compliance with all other provisions of this Agreement.

 

4-4. Intellectual Property.

 

(a) The Loan Parties each owns and possesses, or has the right to use (and will hereafter own, possess, or have such right to use) all patents, industrial designs, trademarks, trade names, trade styles, brand names, service marks, logos, copyrights, trade secrets, know-how, confidential information, and other intellectual or proprietary property of any third Person necessary for the Loan Parties’ conduct of their respective business.

 

 

  

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(b) The conduct by the Loan Parties of their respective business does not presently infringe in any manner which could reasonably be expected to have a Material Adverse Effect (nor will the Loan Parties conduct their businesses in the future so as to infringe  in any manner which could reasonably be expected to have a Material Adverse Effect) the patents, industrial designs, trademarks, trade names, trade styles, brand names, service marks, logos, copyrights, trade secrets, know-how, confidential information, or other intellectual or proprietary property of any third Person.

 

4-5. Locations.

 

(a) The Collateral, and the books, records, and papers of Loan Parties pertaining thereto, are kept and maintained solely at, or in transit to and from, the Loan Parties’ chief executive offices at

 

(i) 112 West 34th Street, New York, New York 10120

 

(ii) 201 Willowbrook Blvd., Wayne, New Jersey 07470

 

(iii) those locations which are listed on EXHIBIT 4-5 annexed hereto, as such EXHIBIT may be amended from time to time, which EXHIBIT includes, with respect to each such location, the name and address of the landlord on the Lease which covers such location (or an indication that a Loan Party owns the subject location) and of all service bureaus with which any such records are maintained.

 

(b) No Loan Party shall remove any of the Collateral from said chief executive office or those locations listed on EXHIBIT 4-5 except:

 

(i) to accomplish sales of Inventory in the ordinary course of business; or

 

(ii) to move Inventory, Equipment and other assets  from one such location to another such location; or

 

(iii) to utilize such of the Collateral as is removed from such locations in the ordinary course of business (such as motor vehicles).

 

(iv) to accomplish other dispositions permitted pursuant to Section 4-12(d) hereof.

 

(v) otherwise upon thirty (30) days prior written notice to the Lender.

 

(c) Except (i) with respect to Inventory delivered to a processor for finishing, (ii) with respect to Inventory in transit, and (iii) as otherwise disclosed pursuant to, or permitted by, this Section 4-5, no tangible personal property of a Loan Party is in the care or custody of any third party or stored or entrusted with a bailee or other third party and none shall hereafter be placed under such care, custody, storage, or entrustment.

 

 

  

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4-6. Title to Assets.

 

(a) Each of the Loan Parties is, and shall hereafter remain, the owner of, or holder of subsisting license or leasehold rights in and to, the Collateral free and clear of all Encumbrances with the exceptions of the following (the “Permitted Encumbrances”):

 

(i) Encumbrances in favor of the Lender.

 

(ii) Those Encumbrances (if any) listed on EXHIBIT 4-6, annexed hereto.

 

(iii) Purchase money security interests in Equipment to secure Indebtedness otherwise permitted hereby.

 

(iv) Encumbrances for taxes, governmental assessments or charges in the nature of taxes not yet due or which are being contested in good faith by appropriate proceedings as to which adequate reserves are maintained on the books of the Loan Parties in accordance with GAAP.

 

(v) Encumbrances in respect of property or assets of the Loan Parties imposed by law, which were incurred in the ordinary course of business, such as carriers’, warehousemen’s, customs broker’s, materialmen’s, repairmen’s, and mechanics’ liens and other similar Encumbrances, in each case in respect of obligations not overdue for a period of more than thirty (30) days or which are being contested in good faith by appropriate proceedings.

 

(vi) Utility deposits and pledges or deposits in connection with worker’s compensation, unemployment insurance and other social security legislation.

 

(vii) Encumbrances arising under Capital Leases.

 

(viii) Encumbrances resulting from the sale, transfer and assignment of retail Accounts to credit card processors.

 

(ix) Deposits to secure the performance of bids, tenders, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business, all to the extent such obligations are otherwise permitted hereunder.

 

(x) Encumbrances on Equipment of a Person which becomes a Subsidiary after the date hereof pursuant to, and Equipment acquired in connection with, a Permitted Acquisition, provided that (A) such Encumbrances existed at the time such Person became a Subsidiary or such Equipment was acquired and were not created in anticipation of the acquisition, and (B) any such Encumbrance does not cover any other assets of such Person after it became a Subsidiary or any other assets of the Loan Parties after such Equipment was acquired, and (C) such Encumbrance does not secure any Indebtedness other than Indebtedness existing immediately prior to the time such Person became a Subsidiary or the time of such acquisition.

 

 

  

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(xi) Encumbrances consisting of the right of setoff of a customary nature or bankers’ liens on amounts on deposit incurred in the ordinary course of business.

 

(xii) Encumbrances on goods in favor of customs and revenue authorities which secure the payment of customs duties in connection with the importation of such goods, which obligations are not overdue.

 

(xiii) Encumbrances constituting precautionary filings by lessors and bailees with respect to assets which are leased or entrusted to a Loan Party but in which assets such Loan Party has mere possessory rights.

 

(xiv) Encumbrances arising from judgments which do not result in an Event of Default under Section 10-10 hereof.

 

(b) No Loan Party has or shall have possession of any property on consignment.

 

(c) No Loan Party shall acquire or obtain the right to use any Equipment, the acquisition or right to use of which Equipment is otherwise permitted by this Agreement, in which Equipment any third party has an interest, except for:

 

(i) Equipment which is merely incidental to the conduct of a Loan Party’s business.

 

(ii) Equipment, the acquisition or right to use of which has been consented to by the Lender, which consent may be conditioned upon the Lender’s receipt of such agreement with the third party which has an interest in such Equipment as is satisfactory to the Lender.

 

(iii) Equipment, the acquisition of which is permitted pursuant to  Section 4-7(c) hereof or which is the subject of an operating lease (but not Capital Leases).

 

4-7. Indebtedness.  No Loan Party has or shall hereafter have any Indebtedness with the exceptions of:

 

(a) Any Indebtedness to the Lenders.

 

(b) The Indebtedness (if any) listed on EXHIBIT 4-7, annexed hereto.

 

(c) Capital Lease obligations and purchase money Indebtedness not to exceed the aggregate principal amount outstanding in excess of $25,000,000.00, and extensions, renewals and refinancings thereof  on terms no less favorable in any material respect to the Loan Parties than the Indebtedness or Capital Lease being refinanced.

 

(d) Subordinated Indebtedness.

 

 

  

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(e) Other Indebtedness not to exceed $50,000,000.00 outstanding at any time.

 

4-8. Insurance Policies.

 

(a) EXHIBIT 4-8, annexed hereto, is a schedule of all material insurance policies owned by the Loan Parties or under which the Loan Parties are the named insured as of the date hereof .  Each of such policies is in full force and effect.  None of the issuers (to the Borrower’s knowledge) of any such policy, have provided notice that the Loan Parties are in default or violation of any such policy.

 

(b) The Loan Parties shall have and maintain at all times insurance covering such risks, in such amounts, containing such terms, in such form, for such periods, and written by such companies as may be reasonably satisfactory to the Lender .  The coverage reflected on EXHIBIT 4-8 presently satisfies the foregoing requirements, it being recognized by the Loan Parties, however, that such requirements may change hereafter to reflect changing circumstances.  All insurance carried by the Loan Parties shall provide for a minimum of fourteen (14) days’ written notice of cancellation to the Lender and all such insurance which covers the Collateral shall include an endorsement in favor of the Lender, as loss payee and additional insured, which endorsement shall provide that the insurance, to the extent of the Lender’s interest therein, shall not be impaired or invalidated, in whole or in part, by reason of any act or neglect of the Loan Parties or by the failure of the Loan Parties to comply with any warranty or condition of the policy.  In the event of the failure by the Loan Parties to maintain insurance as required herein, the Lender , at its option, may obtain such insurance, provided, however, the Lender’s obtaining of such insurance shall not constitute a cure or waiver of any Event of Default occasioned by the Loan Parties’ failure to have maintained such insurance.  The Loan Parties shall furnish to the Lender certificates or other evidence satisfactory to the Lender regarding compliance by the Loan Parties with the foregoing insurance provisions.

 

(c) After the occurrence, and during the continuance, of an Event of Default, the Loan Parties shall each advise the Lender of each claim made by a Loan Party under any policy of insurance which covers the Collateral and will permit the Lender, at the Lender’s option in each instance, to the exclusion of the Loan Parties, to conduct the adjustment of each such claim. The Loan Parties each hereby appoint the Lender as such Loan Party’s attorney in fact, exercisable after the occurrence, and during the continuance, of an Event of Default, to obtain, adjust, settle, and cancel any insurance described in this section and to endorse in favor of the Lender any and all drafts and other instruments with respect to such insurance.  This appointment, being coupled with an interest, is irrevocable until this Agreement is terminated by a written instrument executed by a duly authorized officer of the Lender.  The Lender shall not be liable on account of any exercise pursuant to said power except for any exercise in actual willful misconduct and bad faith.  The Lender may apply any proceeds of such insurance against the Liabilities, whether or not such have matured, in such order of application as the Lender may determine.

 

4-9. Licenses.  Each material license, distributorship, franchise, and similar agreement issued to, or to which a Loan Party is a party is in full force and effect.  To the Borrower’s knowledge, no party to any such license or agreement is in default or violation thereof. No Loan Party has received any notice or threat of cancellation of any such license or agreement.

 

 

  

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4-10. Leases.  EXHIBIT 4-10, annexed hereto, is a schedule of all presently effective Capital Leases (other than Capital Leases the total obligations under which do not aggregate more than $100,000).  EXHIBIT 4-5 includes a list of all other presently effective Leases.  Each of such Leases and Capital Leases presently is in full force and effect.  As of the date hereof, no party to any such Lease or Capital Lease is in default or violation in any material respect of any such Lease or Capital Lease (for which the Loan Party has not received an indemnification from the Seller) and no Loan Party has received any notice or threat of cancellation of any such Lease or Capital Lease.  Each Loan Party hereby authorizes the Lender at any time and from time to time after the occurrence, and during the continuance, of an Event of Default to contact any of the Loan Party’s landlords in order to confirm the Loan Party’s continued compliance with the terms and conditions of the Lease(s) between such Loan Party and that landlord and to discuss such issues, concerning the Loan Party’s occupancy under such Lease(s), as the Lender  may determine.

 

4-11. Requirements of Law.  Each Loan Party is in compliance with, and shall hereafter comply with and use its respective assets in compliance with, all Requirements of Law, except to the extent that such non-compliance would not reasonably be expected to have a Material Adverse Effect.  No Loan Party has received any notice of any material violation of any Requirement of Law, which violation has not been cured or otherwise remedied.

 

4-12. Maintain Properties.  The Loan Parties each shall:

 

(a) Keep the Collateral in good order and repair (ordinary reasonable wear and tear and insured casualty excepted).

 

(b) Not suffer or cause the waste or destruction of any material part of the Collateral.

 

(c) Not use any of the Collateral in violation of any policy of insurance thereon.

 

(d) Not sell, lease, or otherwise dispose of any of the Collateral, other than the following:

 

(i) The sale of Inventory in compliance with this Agreement.

 

(ii) as long as no Event of Default exists or would arise as a result thereof, the disposal of Equipment which is obsolete, worn out, or damaged beyond repair, which Equipment is replaced to the extent necessary to preserve or improve the operating efficiency of the Loan Parties .

 

(iii) The surrender, disposition, or expiration of Collateral (such as trademarks and copyrights) no longer used or useful for the conduct of the Loan Parties’ businesses in the ordinary course.

 

(iv) The turning over to the Lender of all Receipts as provided herein.

 

 

  

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(v) The transfer , sale and assignment of retail Accounts to credit card processors.

 

4-13. Pay Taxes/Tax Shelter Regulations.

 

(a) Except as disclosed on EXHIBIT 4-13, (i) all tax returns (federal, state, local or foreign) that relate to or include any Loan Party and that are due on or before the date hereof, taking into account any extensions for the filing thereof, have been or will be prepared and timely filed in accordance in all material respects with applicable Requirements of Law, (ii) all such tax returns are or will be correct and complete insofar as they relate to the Loan Parties, and (iii) all taxes (federal, state, local or foreign) for which a Loan Party may be liable that are due (whether or not shown on any tax return) have been or will be paid in full.

 

(b) Each Loan Party has, and hereafter shall: pay, as they become due and payable, all taxes and unemployment contributions and other charges of any kind or nature levied, assessed or claimed against such Loan Party, or the Collateral by any person or entity whose claim could result in an Encumbrance upon any asset of any Loan Party or by any governmental authority, except to the extent such taxes are being contested by a Loan Party in good faith, and adequate reserves are being maintained therefor on Loan Parties books in accordance with GAAP; properly exercise any trust responsibilities imposed upon a Loan Party by reason of withholding from employees’ pay or by reason of a Loan Party’s receipt of sales tax or other funds for the account of any third party; timely make all contributions and other payments as may be required pursuant to any Employee Benefit Plan now or hereafter established by the Loan Parties; and timely file all tax and other returns and other reports with each governmental authority to whom a Loan Party is obligated to so file, in each case, taking into account any applicable extension periods.

 

(c) At its option, after the occurrence, and during the continuance, of a Suspension Event, the Lender may, but shall not be obligated to, pay any taxes, unemployment contributions, and any and all other charges levied or assessed upon a Loan Party, or the Collateral by any person or entity or governmental authority, and make any contributions or other payments on account of a Loan Party’s Employee Benefit Plan as the Lender, in the Lender’s discretion, may deem necessary or desirable, to protect, maintain, preserve, collect, or realize upon any or all of the Collateral or the value thereof or any right or remedy pertaining thereto, provided, however, the Lender’s making of any such payment shall not constitute a cure or waiver of any Event of Default occasioned by a Loan Party’s  failure to have made such payment.

 

(d) The Borrower does not intend to treat the Revolving Credit and the L/Cs and the transactions related thereto as being “reportable transactions” (within the meaning of Treasury Regulation Section 1.6011-4).  In the event the Borrower determines to take any action inconsistent with such intention, it will promptly notify the Lender thereof.  If the Borrower so notifies the Lender, the Borrower acknowledges that the Lender may treat the Revolving Credit and/or its interest in the L/Cs as part of a transaction that is subject to Treasury Regulation Section 301.6112-1, and the Lender, will maintain the lists and other records required by such Treasury Regulation.

 

 

  

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4-14. No Margin Stock.  No Loan Party is engaged in the business of extending credit for the purpose of purchasing or carrying any margin stock (within the meaning of Regulations U,T, and X of the Board of Governors of the Federal Reserve System of the United States).  No part of the proceeds of any borrowing hereunder will be used at any time to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock.

 

4-15. ERISA.  From and after the date hereof, none of the Loan Parties nor any ERISA Affiliate shall, in any manner which could reasonably be expected to have a Material Adverse Effect:

 

(a) Fail to comply in all material respects with any Employee Benefit Plan.

 

(b) Fail timely to file all reports and filings required by ERISA to be filed by a Loan Party.

 

(c) Engage in any non-exempt “prohibited transactions” (as described in ERISA).

 

(d) Engage in, or commit, any act such that a tax or penalty could be imposed upon the Loan Parties on account thereof pursuant to ERISA.

 

(e) Accumulate any material funding deficiency within the meaning of Section 302 of ERISA.

 

(f) Terminate any Employee Benefit Plan such that a lien could be asserted against any assets of the Loan Parties on account thereof pursuant to ERISA.

 

(g) Be a member of, contribute to, or have any obligation under any Employee Benefit Plan which is a multiemployer plan within the meaning of Section 4001(a)(3) of ERISA.

 

4-16. Hazardous Materials.

 

(a) Other than matters that could not reasonably be expected to have a Material Adverse Effect, no Loan Party has ever:

 

(i) Been legally responsible for any release or threat of release of any Hazardous Material.

 

(ii) Received notification of any release or threat of release of any Hazardous Material from any site or vessel occupied or operated by a Loan Party and/or of the incurrence of any expense or loss in connection with the assessment, containment, or removal of any release or threat of release of any Hazardous Material from any such site or vessel.

 

(b) The Loan Parties each shall:

 

 

  

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(i) Dispose of any Hazardous Material only in compliance with all Environmental Laws, except for dispositions which could not reasonably be expected to have a Material Adverse Effect.

 

(ii) Not store on any site or vessel occupied or operated by a Loan Party and not transport or arrange for the transport of any Hazardous Material, except if such storage or transport is in the ordinary course of the Loan Parties’ business and is in compliance with all Environmental Laws or could not reasonably be expected to have a Material Adverse Effect.

 

(c) The Loan Parties shall provide the Lender with written notice upon such Loan Party obtaining knowledge of any incurrence of any expense or loss by any governmental authority or other Person in connection with the assessment, containment, or removal of any Hazardous Material, for which expense or loss a Loan Party may be liable, other than expense or loss that could not reasonably be expected to have a Material Adverse Effect.

 

4-17. Litigation.  Except as described in EXHIBIT 4-17, annexed hereto, there is not presently pending or threatened by or against the Loan Parties any suit, action, proceeding, or investigation which, if determined adversely to the Loan Parties, would have a material adverse effect upon the Loan Parties ‘s financial condition or ability to conduct its business as such business is presently conducted or is contemplated to be conducted in the foreseeable future.

 

4-18. Dividends or Investments.  No Loan Party shall:

 

(a) Pay any dividend or make any other distribution (whether in cash, securities or other property) with respect to any class of its capital stock, or make 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 or its capital stock or any option, warrant or other right to acquire such capital stock except by a Guarantor to the Borrower or unless the Liquidity Requirements are satisfied.

 

(b) Intentionally Omitted.

 

(c) Except as provided in Section 4-25 or with respect to Permitted Acquisitions, invest in or purchase any stock or securities or rights to purchase any such stock or securities, of any corporation or other entity.

 

(d) Merge or consolidate or be merged or consolidated with or into any other corporation or other entity, other than (i) the merger of any of the Borrower’s Subsidiaries with and into the Borrower, and (ii) in connection with any Permitted Acquisitions.

 

(e) Consolidate any of a Loan Party’s operations with those of any other corporation or other entity, except in connection with any Permitted Acquisition.

 

(f) Organize or create any Subsidiary, other than in connection with a Permitted Acquisition and only if (i) such Subsidiary guarantees the repayment of the Liabilities and (ii) such Subsidiary grants the Lender a first priority Encumbrance (subject to Permitted Encumbrances) on all of its assets, all of the foregoing satisfactory in form and substance to the Lender.

 

 

  

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(g) Subordinate any debts or obligations owed to a Loan Party by any third party to any other debts owed by such third party to any other Person.

 

(h) Acquire any assets other than Permitted Acquisitions, by the making of Capital Expenditures to the extent permitted hereunder, and other than in the ordinary course and conduct of the Loan Parties business permitted under Section 4-21 hereof.

 

4-19. Loans.  No Loan Party shall make any loans or advances to, nor acquire the Indebtedness of, any Person, provided, however, the foregoing does not prohibit any of the following:

 

(a) Advance payments made to the Loan Parties’ suppliers in the ordinary course.

 

(b) Advances to a Loan Party’s officers, employees, and salespersons with respect to reasonable expenses to be incurred by such officers, employees, and salespersons for the benefit of such Loan Party in the ordinary course of business, which expenses are properly substantiated by the person seeking such advance and properly reimbursable by such Loan Party.

 

(c) Advances on account of sales of Inventory in the ordinary course of business made on credit and all Accounts arising therefrom.

 

(d) Provided that the Liquidity Requirements have been satisfied, loans and/or Investment in or to Aeropostale Canada.

 

(e) Loans and/or Investments by one Loan Party to another in the ordinary course of business.

 

4-20. Protection of Assets.  The Lender, in the Lender’s reasonable discretion, and from time to time, may discharge any tax or Encumbrance on any of the Collateral, or take any other action that the Lender may deem necessary to repair, insure, maintain, preserve, collect, or realize upon any of the Collateral.  The Lender shall not have any obligation to undertake any of the foregoing and shall have no liability on account of any action so undertaken except where there is a specific finding in a judicial proceeding (in which the Lender has had an opportunity to be heard), from which finding no further appeal is available, that the Lender had acted in actual bad faith or in a grossly negligent manner.  The Borrower shall pay to the Lender, on demand, or the Lender, in its reasonable discretion, may add to the Loan Account, all amounts paid or incurred by the Lender pursuant to this section.  The obligation of the Borrower to pay such amounts is a Liability.

 

4-21. Line of Business.No Loan Party shall engage in any business other than the business in which it is currently engaged (which is agreed to be the design, sourcing, marketing, distribution and sale of apparel products and accessories and the licensing of trade names, trademarks and intellectual property to third Persons in connection with the foregoing), any business reasonably related thereto or any business or activity that is reasonably similar or complementary thereto or a reasonable extension, development or expansion thereof or ancillary thereto.

 

 

  

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4-22. Affiliate Transactions.  No Loan Party shall make any payment, nor give any value to any Related Entity except for goods and services actually purchased by such Loan Party from, or sold by such Loan Party to, such Related Entity for a price and on terms which shall not be less favorable to the Loan Party from those which would have been charged in an arms length transaction, except:

 

(a)  until the occurrence, and during the continuance, of an Event of Default, the Loan Parties may (a) pay management fees at the times and in the amounts, and (b) may maintain and make payments with respect to those transactions, in each case as set forth in EXHIBIT 4-22 hereof;

 

(b) transactions in the ordinary course of business among the Loan Parties;

 

(c) provided that the Liquidity Requirements have been satisfied, loans to, payments to, or Investments in Aeropostale Canada.

 

4-23. Additional Assurances.

 

(a) Except as set forth on EXHIBIT 4-23, no Loan Party is the owner of, nor has it any interest in, any property or asset which, immediately upon the satisfaction of the conditions precedent to the effectiveness of the credit facility contemplated hereby (Article 3) will not be subject to a perfected security or other collateral interest in favor of the Lender (subject only to Permitted Encumbrances) to secure the Liabilities.

 

(b) Except as set forth on EXHIBIT 4-23, no Loan Parties will hereafter acquire any asset or any interest in property which is not, immediately upon such acquisition, subject to such a perfected security or other collateral interest in favor of the Lender to secure the Liabilities (subject only to Permitted Encumbrances).

 

(c) The Loan Parties shall each execute and deliver to the Lender such instruments, documents, and papers, and shall do all such things from time to time hereafter as the Lender may reasonably request to carry into effect the provisions and intent of this Agreement; to protect and perfect the Lender’s security interests in the Collateral; and to comply in all material respects with all applicable statutes and laws, and facilitate the collection of the Receivables Collateral.  The Loan Parties shall each execute all such instruments as may be reasonably required by the Lender with respect to the recordation and/or perfection of the security interests created herein.

 

(d) Each Loan Party hereby designates the Lender as and for such Loan Party’s true and lawful attorney, with full power of substitution, to sign and file any financing statements in order to perfect or protect the Lender’s security and other collateral interests in the Collateral.

 

 

  

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(e) To the full extent permitted by applicable law, a carbon, photographic, or other reproduction of this Agreement or of any financing statement or other instrument executed pursuant to this Section 4-23 shall be sufficient for filing to perfect the security interests granted herein.

 

(f) On or before January 30, 2008 the Borrower shall cause Aeropostale Canada to execute such documents and take such steps as the Lender reasonably request in order for Aeropostale Canada to become a Guarantor hereunder and to have its assets included in the Borrowing Base.

 

4-24. Adequacy of Disclosure.

 

(a) All financial statements for periods after the date hereof which are furnished to the Lender by the Loan Parties shall be prepared in accordance with GAAP consistently applied and present fairly, in all material respects, the condition of the Loan Parties at the date(s) thereof and the results of operations and cash flows for the period(s) covered.

 

(b) Intentionally Omitted

 

(c) As of the Second Amendment Effective Date, no Loan Party has any contingent obligations or obligation under any Lease or Capital Lease which is not noted in the Loan Party’s financial statements furnished to the Lender prior to the execution of this Agreement.

 

(d) No document, instrument, agreement, or paper now or hereafter given the Lender by or on behalf of a Loan Party in connection with the execution of this Agreement by the Lender contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements therein not misleading.  There is no fact known to a Loan Party which has, or which, in the foreseeable future would reasonably be expected to have, a material adverse effect on the financial condition of the Loan Parties which has not been disclosed in writing to the Lender.

 

4-25. Investments.  As long as no Cash Dominion Event exists, the Loan Parties may make investments consisting of Cash Equivalents maintained at such bank(s) as the Borrower may select.

 

4-26. Prepayments of Indebtedness.

 

No Loan Party will make or agree to pay or make, directly or indirectly, any payment or other distribution (whether in cash securities or other property) of or in respect of principal of or interest on any Indebtedness, including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Indebtedness, except:

 

(a) as long as no Event of Default has occurred and is continuing or would result therefrom, mandatory payments and prepayments of interest and principal as and when due in respect of any Indebtedness permitted hereunder, excluding any Subordinated Indebtedness;

 

 

  

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(b)  payments on account of Subordinated Indebtedness to the extent permitted under any subordination agreement or provisions governing such Indebtedness;

 

(c) voluntary prepayments of Indebtedness permitted hereunder (other than Subordinated Indebtedness) as long as the Liquidity Requirement is satisfied; and

 

(d) refinancings of Indebtedness to the extent permitted under this Agreement.

 

4-27. Other Covenants.No Loan Party shall indirectly do or cause to be done any act which, if done directly by a Loan Party, would breach any covenant contained in this Agreement.

 

Article 5 - Financial Reporting and Performance Covenants:

 

5-1. Maintain Records.  The Borrower shall, and shall cause each Guarantor to:

 

(a) At all times, keep proper books of account, in which full, true, and accurate entries shall be made of all of the Loan Parties’ transactions, all in accordance with GAAP, applied consistently with all prior periods, to fairly reflect, in all material respects, the financial condition of the Loan Parties at the close of, and its results of operations for, the periods in question.

 

(b) Timely provide the Lender with those financial reports, statements, and schedules required by this Article 5 or otherwise, each of which reports, statements and schedules shall be prepared, to the extent applicable, in accordance with GAAP (but for the absence of footnotes and year end adjustments), applied consistently with all prior periods, to fairly reflect, in all material respects, the financial condition of the Loan Parties at the close of, and their results of operations for, the period(s) covered therein.

 

(c) At all times, keep accurate (in all material respects) and current records of the Collateral including, without limitation, accurate current stock, cost, and sales records of its respective Inventory, accurately and sufficiently itemizing and describing the kinds, types, and quantities of Inventory and the cost and selling prices thereof.

 

(d) At all times, retain independent certified public accountants who are reasonably satisfactory to the Lender and instruct such accountants to fully cooperate with, and be available to, the Lender to discuss a Loan Party’s financial performance, financial condition, operating results, controls, and such other matters, within the scope of the retention of such accountants, as may be raised by the Lender.

 

(e) Not change a Loan Party’s fiscal year for book accounting purposes, except in connection with an initial public offering of the Borrower’s capital stock.

 

5-2. Access to Records.

 

(a) The Borrower shall, and shall cause each Guarantor to, afford the Lender and the Lender’s representatives with access from time to time, during normal business hours and, unless an Event of Default exists, upon reasonable notice, as the Lender and such representatives may require to all properties owned by or over which a Loan Party has control.  The Lender and the Lender’s representatives shall have the right, and the Borrower will, and will cause each Guarantor to, permit the Lender and such representatives from time to time as the Lender and such representatives may request, during normal business hours and, unless an Event of Default exists, upon reasonable notice, to examine, inspect, copy, and make extracts from any and all of the Loan Parties’ books, records, electronically stored data, papers, and files pertaining to its business operations, financial information or the Collateral.  The Borrower shall, and shall cause the Guarantor to, make copying facilities reasonably available to the Lender.

 

 

  

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(b) The Borrower for itself, and as the sole shareholder or member, as applicable, of each Guarantor , hereby authorizes the Lender and the Lender’s representatives to:

 

(i) Inspect, copy, duplicate, review, cause to be reduced to hard copy, run off, draw off, and otherwise use any and all computer or electronically stored information or data which relates to the Loan Parties, whether in the possession of a Loan Party or in the possession of any service bureau, contractor, accountant, or other person, (and the Loan Parties each directs any such service bureau, contractor, accountant, or other person fully to cooperate with the Lender and the Lender’s  representatives with respect thereto), provided that, except as set forth in Section 5-10 hereof, such inspections and reviews shall not be undertaken by the Lender as long as no Event of Default then exists and is continuing.

 

(ii) Verify at any time the Collateral or any portion thereof, including verification with Account Debtors, and/or with each Loan Party’s computer billing companies, collection agencies, and accountants and to sign the name of the Loan Party on any notice to such Loan Party’s Account Debtors or verification of the Collateral, provided that, as long as no Event of Default exists and is continuing, the form and content of any such verification letters shall be subject to the prior approval of the Borrower (whose consent shall not be unreasonably withheld or delayed).

 

5-3. Prompt Notice to Lender.

 

(a) The Borrower shall, and shall cause each Guarantor to, provide the Lender with written notice promptly upon the occurrence of any of the following events, which written notice shall be with reasonable particularity as to the facts and circumstances in respect of which such notice is being given:

 

(i) Any change in a Loan Party’s executive officers.

 

(ii) The completion of any physical count of a Loan Party’s Inventory (together with a copy of the certified results thereof).

 

(iii) Any ceasing of any Loan Party making of payment, in the ordinary course, to a material portion (in amount or number) of its creditors.

 

(iv) Any failure by a Loan Party to pay rent at any of the locations, which failure continues for more than twenty (20) Business Days following the day on which such rent first came due, except for Leases for such locations which have been terminated or abandoned by a Loan Party.

 

 

  

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(v) Any material change in the business, operations, or financial affairs of a Loan Party.

 

(vi) The occurrence of any Suspension Event, that has not been cured by the Loan Parties or waived by the Lender.

 

(vii) Any decision on the part of a Loan Party to discharge a Loan Party’s present independent accountants or any withdrawal or resignation by such independent accountants from their acting in such capacity (as to which, see Subsection 5-1(d)).

 

(viii) Any litigation which, if determined adversely to a Loan Party, would reasonably be expected to have a material adverse effect on the financial condition of such Loan Party.

 

(ix) The acquisition by a Loan Party of any Commercial Tort Claim.

 

(x) The intention by Borrower to treat the Revolving Credit and/or the L/Cs and related transactions as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4), by delivering a duly completed copy of IRS Form 8886 or any successor form.

 

(b) The Borrower shall, and shall cause each Guarantor to, provide the Lender, when received by the Borrower or Guarantor, with a copy of any management letter or similar communications from any accountant of the Borrower or Guarantor.

 

5-4. Intentionally Omitted.

 

5-5. Borrowing Base Certificates.  Monthly, within seven (7) days after the end of the Borrower’s prior fiscal month, the Borrower shall provide the Lender with a certificate in the form of Exhibit 5-5 (a “Borrowing Base Certificate”) showing the Borrowing Base as of the close of business on the last day of the Borrower’s immediately preceding fiscal month, each such Certificate to be certified as complete and correct on behalf of the Borrower by a Responsible Officer of the Borrower.

 

5-6. Monthly Reports.  Only if a Cash Dominion Event exists, within twenty (20) days following the end of each of the Borrower’s fiscal months, the Borrower shall provide the Lender with original counterparts of an internally prepared financial statement of the Loan Parties’ financial condition and the results of their respective operations for, the period ending with the end of the subject month, which financial statement shall include, at a minimum, a balance sheet, income statement (on a “consolidated” basis), cash flow and comparison of same store sales for the corresponding quarter of the then immediately previous year, as well as to the Business Plan, and management’s analysis and discussion of the operating results reflected therein.

 

5-7. Quarterly Reports.  Within forty-five (45) days following the end of each of the Borrower’s fiscal quarters, the Borrower shall provide the Lender with original counterparts of an internally prepared financial statement of the Loan Parties’ financial condition and the results of their respective operations for, the period ending with the end of the subject quarter, which financial statement shall include, at a minimum, a balance sheet, income statement (on a “consolidated” basis), cash flow and comparison of same store sales for the corresponding quarter of the then immediately previous year, as well as to the Business Plan, and management’s analysis and discussion of the operating results reflected therein.  The delivery either electronically or in paper to the Lender of the Borrower’s Form 10Q or Form 10K, as the case may be, which is filed with the Securities and Exchange Commission shall satisfy the Borrower’s obligations under this Section 5-7.

 

 

  

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5-8. Annual Reports.

 

(a) Annually, within ninety (90) days following the end of the Borrower’s fiscal year, the Borrower shall furnish the Lender with an original signed counterpart of the Borrower’s consolidated annual financial statement, which statement shall have been prepared by, and bear the unqualified opinion of, the Borrower’s independent certified public accountants (i.e. said statement shall be “certified” by such accountants).  Such annual statement shall include, at a minimum (with comparative information for the then prior fiscal year) a balance sheet, income statement, statement of changes in shareholders’ equity, and cash flows.  The delivery either electronically or in paper to the Lender of the Borrower’s Form 10K which is filed with the Securities and Exchange Commission shall satisfy the Borrower’s obligations under this Section 5-8(a).

 

(b) No later than the earlier of fifteen (15) days prior to the end of each of the Borrower’s fiscal years or the date on which such accountants commence their work on the preparation of the Borrower’s annual financial statement, the Borrower shall give written notice to such accountants (with a copy of such notice, when sent, to the Lender) that:

 

(i) Such annual financial statement will be delivered by the Borrower to the Lender.

 

(ii) It is an intention of the Loan Parties, in their engagement of such accountants, to satisfy the financial reporting requirements set forth in this Article 5.

 

(iii) The Loan Parties have been advised that the Lender will rely thereon with respect to the administration of, and transactions under, the credit facility contemplated by this Agreement.

 

(c) Each annual statement shall be accompanied by such accountant’s Certificate indicating that, in the preparation of such annual statement, such accountants did not conclude that any Suspension Event had occurred during the subject fiscal year (or if one or more had occurred, the facts and circumstances thereof).

 

5-9. Intentionally Omitted.

 

5-10. Inventories, Appraisals, and Audits.

 

(a) The Lender, at the expense of the Borrower, may observe each physical count and/or inventory of so much of the Collateral as consists of Inventory which is undertaken on behalf of, and at the request of, a Loan Party.

 

 

  

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(b) The Loan Parties, at their own expense, shall cause not less than one (1) physical inventory to be undertaken in each twelve (12) month period during which this Agreement is in effect to be conducted by a national third party inventory taker.

 

(i) The Loan Parties shall provide the Lender with a copy of the final results of each such inventory (as well as of any other physical inventory undertaken by a Loan Party) within fourteen (14) days following the completion of such inventory.

 

(ii) The Borrower shall provide the Lender with a reconciliation of the results of each such inventory (as well as of any other physical inventory undertaken by a Loan Party) to the Loan Party’s books and records within forty-five (45) days following completion of such inventory.

 

(iii) The Lender, in its discretion, following the occurrence, and during the continuance, of a Suspension Event, may cause such additional inventories to be taken as the Lender determines (each, at the expense of the Borrower).

 

(c) Upon the Lender’s request from time to time, the Borrower shall, and shall cause each Guarantor to, permit the Lender to obtain appraisals conducted by such appraisers as are satisfactory to the Lender and using a methodology similar in scope and nature as was undertaken on behalf of the Lender prior to the effectiveness of this Agreement.  Without limiting the foregoing, the Lender may obtain periodic Inventory liquidation analyses performed by Hilco/Great American Group or another liquidation analysis firm selected by the Lender; provided that the expense for any such appraisals shall be borne by the Lender (except as provided in the final two sentences of this clause), unless and until the Aggregate Outstandings exceed, or are anticipated to exceed, $75,000,000.  At any time after the Aggregate Outstandings exceed, or are anticipated to exceed, $75,000,000, the Lender shall have the right to undertake two appraisals, at the Loan Parties’ expense, in each twelve month period.  After the occurrence and during the continuance of an Event of Default, all such appraisals shall be undertaken at the Loan Parties’ expense.

 

(d) Upon the Lender’s request from time to time, the Borrower shall, and shall cause each Guarantor to, permit the Lender to conduct commercial finance audits of the Borrower’s and Guarantor’s books and records using a methodology similar in scope and nature as was undertaken on behalf of the Lender prior to the effectiveness of this Agreement, provided that the expense for any such audits shall be borne by the Lender (except as provided in the final two sentences of this clause), unless and until the Aggregate Outstandings exceed, or are anticipated to exceed, $75,000,000.  At any time after the Aggregate Outstandings exceed, or are anticipated to exceed, $75,000,000, the Lender shall have the right to undertake two audits, at the Loan Parties’ expense, in each twelve month period.  After the occurrence and during the continuance of an Event of Default, all such audits shall be undertaken at the Loan Parties’ expense.

 

(e) Intentionally Omitted.

 

 

  

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5-11. Additional Financial Information.

 

(a) In addition to all other information required to be provided pursuant to this Article 5, the Borrower promptly shall provide the Lender (and shall cause each Guarantor and any other guarantor of the Liabilities to also provide the Lender), with such other and additional information concerning the Borrower or Guarantor, the Collateral, the operation of the Borrower’s or Guarantor’s business, and the Borrower’s or Guarantor’s) financial condition, including original counterparts of financial reports and statements, as the Lender may from time to time reasonably request from the Borrower.

 

(b) The Borrower may provide the Lender, at the Lender’s discretion, from time to time hereafter, with updated projections of the Loan Parties’ anticipated performance and operating results.

 

(c) In all events, the Borrower, no sooner than ninety (90) nor later than thirty (30) days prior to the end of each of the Borrower’s fiscal years, shall furnish the Lender with an updated and extended balance sheet, income statement, cash flow statement (including an Availability model), prepared on a monthly basis and which shall go out at least through the end of the then next fiscal year. Together with such updated and extended projections, the Borrower shall deliver to the Lender a description of the methodology and assumptions upon which the projections were prepared.

 

(d) The Loan Parties each recognizes that all appraisals, inventories, analysis, financial information, and other materials which the Lender may obtain, develop, or receive with respect to the Loan Parties is confidential to the Lender and that, except as otherwise provided herein, no Loan Party is entitled to receipt of any of such appraisals, inventories, analysis, financial information, and other materials, nor copies or extracts thereof or therefrom.

 

5-12. Intentionally Omitted.

 

Article 6 - Use and Collection of Collateral:

 

6-1. Use of Inventory Collateral.

 

(a) The Borrower shall not, and shall cause each Guarantor not to engage in any sale of the Inventory other than for fair consideration in the conduct of the Borrower’s or Guarantor’s business in the ordinary course (other than promotions, markdowns, and discounts in the ordinary course of business) nor shall either engage in sales or other dispositions to creditors in reduction or satisfaction of such creditors’ claims; sales or other dispositions in bulk; or any use of any of the Inventory in breach of any provision of this Agreement. Notwithstanding the foregoing, the Loan Parties may “job-out” end of season and slow-moving Inventory, provided that the Inventory so disposed of does not exceed five percent (5%) of the Loan Parties’ aggregate retail receipts in any fiscal year.

 

(b) No sale of Inventory shall be on consignment, approval, or under any other circumstances such that, with the exception of the Loan Parties’ customary return policy applicable to the return of inventory purchased by the Loan Parties’ retail customers in the ordinary course, such Inventory may be returned to the Loan Parties without the consent of the Lender.

 

 

  

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6-2. Adjustments and Allowances.  A Loan Party may grant such allowances or other adjustments to the such Loan Party’s Account Debtors as the Loan Party, respectively, may reasonably deem to accord with sound business practice, provided, however, the authority granted the Loan Parties pursuant to this Section 6-2 may be limited or terminated by the Lender at any time after the occurrence, and during the continuance, of an Event of Default in the Lender’s discretion.

 

6-3. Validity of Accounts.

 

(a) The amount of each Account shown on the books, records, and invoices of the Loan Parties represented as owing by each Account Debtor is and will be the correct amount actually owing by such Account Debtor (subject to adjustments for returned Inventory in the ordinary course of business) and shall have been fully earned by performance by such Loan Party.

 

(b) The Lender, from time to time (at the expense of the Borrower in each instance), may verify the validity, amount, and all other matters with respect to the Receivables Collateral directly with Account Debtors (including without limitation, by forwarding balance verification requests to each Loan Party’s Account Debtors), and with each Loan Party’s accountants, collection agents, and computer service bureaus (each of which is hereby authorized and directed to cooperate in full with the Lender and to provide the Lender with such information and materials as the Lender may request), provided that, as long as no Event of Default exists and is continuing, the form and content of any such verification letters shall be subject to the prior approval of the Borrower (whose consent shall not be unreasonably withheld or delayed).

 

(c) No Loan Party has knowledge of any impairment of the validity or collectibility of any of the Accounts (other than customary adjustments and chargebacks in the ordinary course of business) and shall notify the Lender of any such fact immediately after a Loan Party becomes aware of any such impairment.

 

(d) Except as set forth in EXHIBIT 6-3, no Loan Party shall post any bond to secure a Loan Party’s performance under any agreement to which a Loan Party is a party nor cause any surety, guarantor, or other third party obligee to become liable to perform any obligation of a Loan Party (other than to the Lender) in the event of Loan Party’s failure so to perform.

 

6-4. Notification to Account Debtors.  The Lender shall have the right at any time after the occurrence, and during the continuance, of an Event of Default, to notify any of a Loan Party’s Account Debtors to make payment directly to the Lender and to collect all amounts due on account of the Collateral.

 

 

  

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Article 7 - Cash Management. Payment of Liabilities:

 

7-1. Depository Accounts.

 

(a) Annexed hereto as EXHIBIT 7-1 is a Schedule of all present DDAs, which Schedule includes, with respect to each depository (i) the name and address of that depository; (ii) the account number(s) of the account(s) maintained with such depository; and (iii) a contact person at such depository.

 

(b) To the extent not previously delivered to the Lender, the Borrower shall, and shall cause each Guarantor to, deliver to the Lender, as a condition to the effectiveness of this Agreement:

 

(i) Notification, executed on behalf of the Borrower or Guarantor, as applicable, to each depository institution with which any DDA is maintained (other than the Operating Account), in form reasonably satisfactory to the Lender, of the Lender’s interest in such DDA.

 

(ii) An agreement (generally referred to as a “Blocked Account Agreement”), in form reasonably satisfactory to the Lender, with any depository institution at which a Blocked Account is maintained.

 

(iii) An agreement, in form reasonably satisfactory to the Lender, with any depository institution at which the Operating Account is maintained.

 

(c) No Loan Party will establish any DDA hereafter unless, contemporaneous with such establishment, such Loan Party, delivers to the Lender an agreement (in form satisfactory to the Lender) executed on behalf of the depository with which such DDA is being established.

 

7-2. Credit Card Receipts.

 

(a) Annexed hereto as EXHIBIT 7-2 is a Schedule which describes all arrangements to which each Loan Party is a party with respect to the payment to such Loan Party, of the proceeds of all credit card charges for sales by the Loan Party.

 

(b) To the extent not previously delivered to the Lender, the Borrower shall, and shall cause each Guarantor to, deliver to the Lender, as a condition to the effectiveness of this Agreement, notifications, executed on behalf of the Borrower or such Guarantor, as applicable, to each of the Borrower’s and Guarantor’s credit card clearinghouses and processors of notice (in form satisfactory to the Lender), which notice provides that payment of all credit card charges submitted by the Borrower or Guarantor to that clearinghouse or other processor and any other amount payable to the Borrower or Guarantor by such clearinghouse or other processor shall be directed to the Concentration Account or as otherwise designated from time to time by the Lender.  Neither the Borrower nor any Guarantor shall change such direction or designation except upon and with the prior written consent of the Lender.

 

 

  

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7-3. The Concentration, Blocked, and Operating Accounts.

 

(a) The following checking accounts have been or will be established (and are so referred to herein):

 

(i) The Concentration Account: Established by the Lender with Bank of America, N.A.

 

(ii) The Blocked Account: Established by the Borrower with Bank of America, N.A.

 

(iii) The Operating Account:  Established by the Borrower with Bank of America, N.A.

 

(b) The contents of each DDA, of the Operating Account, and of the Blocked Account constitutes Collateral and Proceeds of Collateral. The contents of the Concentration Account constitutes the Lender’s property.

 

(c) The Loan Parties:

 

(i) To the extent not previously delivered to the Lender, contemporaneously with the execution of this Agreement, shall provide the Lender with such agreement (generally referred to as a “Blocked Account Agreement”) of the depository with which the Blocked Account is maintained as may be reasonably satisfactory to the Lender;

 

(ii) To the extent not previously delivered to the Lender, contemporaneously with the execution of this Agreement, shall provide the Lender with such agreement of the depository with which the Operating Account is maintained as may be reasonably satisfactory to the Lender; and

 

(iii) Shall not establish any Blocked Account or Operating Account hereafter except upon not less than thirty (30) days prior written notice to the Lender and the delivery to the Lender of a similar such agreement.

 

(d) The Loan Parties shall pay all fees and charges of, and maintain such impressed balances as may be required by the Lender or by any bank in which any account is opened as required hereby (even if such account is opened by and/or is the property of the Lender).

 

7-4. Proceeds and Collection of Accounts.

 

(a) All Receipts constitute Collateral and proceeds of Collateral and, after the occurrence and during the continuance of a Cash Dominion Event, shall be held in trust by the Loan Parties for the Lender; shall not be commingled with any of a Loan Party’s other funds; and shall be deposited and/or transferred only to the Blocked Account.

 

 

  

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(b) After the occurrence and during the continuance of a Cash Dominion Event, the Borrower shall cause the, and shall cause each Guarantor to, ACH or wire transfer to the Blocked Account, no less frequently than daily (and whether or not there is then an outstanding balance in the Loan Account) of

 

(i) the then current contents of each DDA (other than the Operating Account), each such transfer to be net of any minimum balance, not to exceed $5,000.00, as may be required to be maintained in the subject DDA by the bank at which such DDA is maintained); and

 

(ii) the proceeds of all credit card charges not otherwise provided for pursuant hereto.

 

Telephone advice (confirmed by written notice) shall be provided to the Lender on each Business Day on which any such transfer is made.

 

(c) After the occurrence and during the continuance of a Cash Dominion Event, whether or not any Liabilities are then outstanding, the Loan Parties shall cause the ACH or wire transfer to the Concentration Account, no less frequently than daily, of then entire ledger balance of the Blocked Account, net of such minimum balance, not to exceed $5,000.00, as may be required to be maintained in the Blocked Account by the bank at which the Blocked Account is maintained.

 

(d) After the occurrence and during the continuance of a Cash Dominion Event, in the event that, notwithstanding the provisions of this Section 7-4, a Loan Party receives or otherwise has dominion and control of any Receipts, or any proceeds or collections of any Collateral, such Receipts, proceeds, and collections shall be held in trust by such Loan Party for the Lender and shall not be commingled with any of the Loan Party’s other funds or deposited in any account of the Loan Party other than as instructed by the Lender.

 

7-5. Payment of Liabilities.

 

(a) On each Business Day, the Lender shall apply, towards the Liabilities, the then collected balance of the Concentration Account (net of fees charged, and of such impressed balances as may be required by the bank at which the Concentration Account is maintained).

 

(b) The following rules shall apply to deposits and payments under and pursuant to this Agreement:

 

(i) Funds shall be deemed to have been deposited to the Concentration Account on the Business Day on which deposited, provided that notice of such deposit is available to the Lender by 2:00 PM on that Business Day.

 

(ii) Funds paid to the Lender, other than by deposit to the Concentration Account, shall be deemed to have been received on the Business Day when they are good and collected funds, provided that notice of such payment is available to the Lender by 2:00PM on that Business Day.

 

 

  

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(iii) If notice of a deposit to the Concentration Account (Section 7-5(b)(i)) or payment (Section 7-5(b)(ii)) is not available to the Lender until after 2:00PM on a Business Day, such deposit or payment shall be deemed to have been made at 9:00 AM on the then next Business Day.

 

(iv) All deposits to the Concentration Account and other payments to the Lender are subject to clearance and collection.

 

(c) All payments shall be applied First to pay Liabilities other than the principal balance of the Loan Account; Second in reduction of Base Rate Loans until paid in full, and Third in reduction of Eurodollar Loans until paid in full, together with any amounts which become due as a result of such payment pursuant to Section 2-7(e) hereof; provided that at the Borrower’s option, as long as no Event of Default then exists, the Borrower shall have the right, in lieu of making a prepayment on account of the Eurodollar Loans, to cause any amounts in excess of the sums required to pay the Liabilities described in clauses First and Second, above, to be deposited with the Lender and held as collateral for the Liabilities and applied to the payment of the applicable Eurodollar Loans at the end of the current Interest Periods applicable thereto, in order of maturity of such Interest Periods (or upon the occurrence, and during the continuance, of an Event of Default, to the Liabilities in such order and manner as the Lender, in its discretion, shall determine).

 

(d) The Lender shall transfer to the Operating Account any surplus in the Concentration Account remaining after the application towards the Liabilities referred to in Section 7-5(a), above (less those amount which are to be netted out, as provided therein) provided, however, in the event that both (i) a Suspension Event has occurred and is continuing, and (ii) one or more L/C’s are then outstanding, the Lender may establish a funded reserve of up to 103% of the aggregate Stated Amounts of such L/C’s.

 

7-6. The Operating Account. Except as otherwise specifically provided in, or permitted by, this Agreement, all checks shall be drawn by the Loan Parties upon, and other disbursements shall be made by the Loan Parties solely from, the Operating Account.  Until the occurrence, and during the continuance, of an Event of Default, as provided in the agreement with the depository with which the Operating Account has been established, the Lender shall not be entitled to exercise any dominion or control over the funds in the Operating Account.

 

Article 8 - Grant of Security Interest:

 

8-1. Grant of Security Interest.  To secure the Borrower’s prompt, punctual, and faithful performance of all and each of the Liabilities, the Borrower hereby grants to the Lender a continuing security interest in and to, and assigns to the Lender, (and ratifies and confirms the Borrower’s prior grant of a security interest to the Lender pursuant to the Existing Loan Agreement, in and to) the following, and each item thereof, whether now owned or now due, or in which the Borrower has an interest, or hereafter acquired, arising, or to become due, or in which the Borrower obtains an interest, and all products, Proceeds, substitutions, and accessions of or to any of the following (all of which, together with any other property in which the Lender may in the future be granted a security interest, is referred to herein as the “Collateral”):

 

 

  

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(a) All Accounts and Accounts Receivable.

 

(b) All Inventory.

 

(c) All General Intangibles, including, without limitation, all Payment Intangibles.

 

(d) All Equipment.

 

(e) All Goods.

 

(f) All Fixtures.

 

(g) All Chattel Paper.

 

(h) All books, records, and information relating to the Collateral and/or to the operation of the Borrower’s business, and all rights of access to such books, records, and information, and all property in which such books, records, and information are stored, recorded, and maintained.

 

(i) All Investment Property, Instruments, Documents, Deposit Accounts, policies and certificates of insurance, deposits, impressed accounts, compensating balances, money, cash, or other property.

 

(j) All Letter of Credit Rights and Supporting Obligations.

 

(k) All Commercial Tort Claims.

 

(l) All insurance proceeds, refunds, and premium rebates, including, without limitation, proceeds of fire and credit insurance, whether any of such proceeds, refunds, and premium rebates arise out of any of the foregoing(8-1(a) through 8-1(k)) or otherwise.

 

(m) All liens, guaranties, rights, remedies, and privileges pertaining to any of the foregoing (8-1(a) through 8-1(l)), including the right of stoppage in transit.

 

provided that, the Collateral shall not include leases or licenses and rights thereunder to the extent of enforceable anti-assignment provisions therein contained which have not been waived, provided, however, that in no event shall the foregoing be construed to exclude from the security interest created by this Agreement, proceeds or products of any such leases or licenses or any accounts receivable or the right to payments due or to become due the Borrower under any such lease or license.

 

8-2. Extent and Duration of Security Interest.  This grant of a security interest is in addition to, and supplemental of, any security interest previously granted by the Borrower to the Lender and shall continue in full force and effect applicable to all Liabilities, until all Liabilities have been paid and/or satisfied in full (other than indemnities not then due and payable, which survive repayment of the Revolving Credit Loans and the L/Cs and termination of the Commitments) and the security interest granted herein is specifically terminated in writing by a duly authorized officer of the Lender (which the Lender agrees to do upon payment and satisfaction of all such Liabilities).

 

 

  

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Article 9 - Lender As Borrower’s Attorney-In-Fact:

 

9-1. Appointment as Attorney-In-Fact.  The Borrower hereby irrevocably constitutes and appoints the Lender as the Borrower’s true and lawful attorney, with full power of substitution, exercisable only after the occurrence, and during the continuance, of an Event of Default, to convert the Collateral into cash at the sole risk, cost, and expense of the Borrower, but for the sole benefit of the Lender. The rights and powers granted the Lender by this appointment include but are not limited to the right and power to:

 

(a) Prosecute, defend, compromise, or release any action relating to the Collateral.

 

(b) Sign change of address forms to change the address to which the Borrower’s mail is to be sent to such address as the Lender shall designate; receive and open the Borrower’s mail; remove any Receivables Collateral and Proceeds of Collateral therefrom and turn over the balance of such mail either to the Borrower or to any trustee in bankruptcy, receiver, assignee for the benefit of creditors of the Borrower, or other legal representative of the Borrower whom the Lender determines to be the appropriate person to whom to so turn over such mail.

 

(c) Endorse the name of the Borrower in favor of the Lender upon any and all checks, drafts, notes, acceptances, or other items or instruments; sign and endorse the name of the Borrower on, and receive as secured party, any of the Collateral, any invoices, schedules of Collateral, freight or express receipts, or bills of lading, storage receipts, warehouse receipts, or other documents of title respectively relating to the Collateral.

 

(d) Sign the name of the Borrower on any notice to the Borrower’s Account Debtors or verification of the Receivables Collateral; sign the Borrower’s name on any Proof of Claim in Bankruptcy against Account Debtors, and on notices of lien, claims of mechanic’s liens, or assignments or releases of mechanic’s liens securing the Accounts.

 

(e) Take all such action as may be necessary to obtain the payment of any letter of credit and/or banker’s acceptance of which the Borrower is a beneficiary.

 

(f) Repair, manufacture, assemble, complete, package, deliver, alter or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any customer of the Borrower.

 

(g) Use, license or transfer any or all General Intangibles of the Borrower.

 

9-2. No Obligation to Act.  The Lender shall not be obligated to do any of the acts or to exercise any of the powers authorized by Section 9-1 herein, but if the Lender elects to do any such act or to exercise any of such powers, it shall not be accountable for more than it actually receives as a result of such exercise of power, provided that, if the Lender elects to use or license any General Intangibles of the Borrower consisting of trademarks, copyrights or similar property, the Lender shall use reasonable efforts to preserve and maintain any such trademark, copyright or similar property (but nothing contained herein shall obligate the Lender to undertake (or refrain from undertaking) any specific action with respect thereto). The Lender shall not be responsible to the Borrower for any act or omission to act pursuant to Section 9-1, except to the extent that the subject act or omission to act had been grossly negligent or in actual bad faith.

 

 

  

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Article 10 - Events of Default:

 

The occurrence of any event described in this Article 10 shall constitute an “Event of Default” herein.  Upon the occurrence of any Event of Default described in Section 10-12, any and all Liabilities shall become due and payable without any further act on the part of the Lender.  Upon the occurrence, and during the continuance, of any other Event of Default, any and all Liabilities shall become immediately due and payable, at the option of the Lender and without notice or demand.  The occurrence and continuance of any Event of Default shall also constitute, without notice or demand, a default under all other Loan Documents, whether such Loan Documents now exist or hereafter arise.

 

10-1. Failure to Pay Revolving Credit.  The failure by the Borrower to pay any principal amount when due under the Revolving Credit.

 

10-2. Failure To Make Other Payments.  The failure by the Borrower to pay when due (or upon demand, if payable on demand) any payment Liability within three (3) days of the date when due other than the principal amount under the Revolving Credit.

 

10-3. Failure to Perform Covenant or Liability (No Grace Period).  The failure by the Borrower to promptly, punctually, faithfully and timely perform, discharge, or comply with any covenant or Liability not otherwise described in Section 10-1 or Section 10-2 hereof, and included in any of the following provisions hereof:

 

Section______Relates to______:

 

4-5                      Location of Collateral

 

4-6                      Title to Assets

 

4-7                      Indebtedness

 

4-8(b)                 Insurance Policies

 

6                          Use of Collateral

 

Article 7             Cash Management

 

10-4. Failure to Perform Covenant or Liability (Limited Grace Period).  The failure by the Borrower, upon three (3) days written notice by the Lender, to cure the Borrower’s failure to promptly, punctually and faithfully perform, discharge, or comply with any covenant under Sections 4-13, 4-22, 4-23, and Article 5 hereof.

 

10-5. Failure to Perform Covenant or Liability (Grace Period). The failure by the Borrower, upon fifteen (15) days written notice by the Lender, to cure the Borrower’s failure to promptly, punctually and faithfully perform, discharge, or comply with any covenant hereunder or under any other Loan Document or with any Liability not described in any of Sections 10-1, 10-2, 10-3 or 10-4 hereof.

 

 

  

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10-6. Misrepresentation. Any representation or warranty at any time made by the Borrower to the Lender is not true or complete in all material respects when given.

 

10-7. Default of Other Debt. The occurrence of any event such that any Indebtedness of the Borrower to any creditor in excess of $10,000,000.00, other than the Lender, could then be accelerated (whether or not the subject creditor takes any action on account of such occurrence), provided that if such event is waived in writing by the holder of the Indebtedness prior to the exercise of remedies by the Lender hereunder, the occurrence of such event shall not constitute an Event of Default hereunder.

 

10-8. Default of Leases. The occurrence of any event such that any Lease or Leases of the Borrower could then be terminated (whether or not any or all of the subject lessors take any action on account of such occurrence) and such termination (individually or together with all other such terminations) could reasonably likely have a Material Adverse Effect, provided that if such event is waived in writing by the subject lessors prior to the exercise of remedies by the Lender hereunder, the occurrence of such event shall not constitute an Event of Default hereunder.

 

10-9. Uninsured Casualty Loss.The occurrence of any uninsured loss, theft, damage, or destruction of or to any material portion of the Collateral, having an aggregate value in excess of $1,500,000.00.

 

10-10. Judgment.  Restraint of Business.

 

(a) The entry of any uninsured judgment against the Borrower, in excess of $5,000,000.00, individually or in the aggregate, which judgment is not satisfied (if a money judgment) or appealed from (with execution or similar process stayed) within thirty (30) days of its entry.

 

(b) The entry of any order or the imposition of any other process having the force of law, in either case applicable specifically to the Borrower, the effect of which is to restrain in any material adverse way the conduct by the Borrower of its business in the ordinary course, which order is not dissolved within ten (10) days of its imposition.

 

10-11. Business Failure. Any act by, against, or relating to the Borrower, or its property or assets, which act constitutes the application for, consent to, or sufferance of the appointment of a receiver, trustee, or other person, pursuant to court action or otherwise, over all, or any material part of the Borrower’s property; the granting of any trust mortgage or execution of an assignment for the benefit of the creditors of the Borrower generally; the offering by or entering into by the Borrower of any composition, extension, or any other arrangement seeking relief generally from or extension of the debts of the Borrower; or the initiation of any judicial or non-judicial proceeding or agreement by, against, or including the Borrower which seeks or intends to accomplish a reorganization or arrangement with creditors, provided that, if such proceeding is initiated against the Borrower, an Event of Default shall not arise hereunder unless such proceeding is not timely contested in good faith by the Borrower by appropriate proceedings or, if so contested, is not dismissed within sixty (60) days of when initiated; and/or the initiation by or on behalf of the Borrower of the liquidation or winding up of all or any material part of the Borrower’s business or operations.

 

 

  

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10-12. Bankruptcy. The failure by the Borrower to generally pay the debts of the Borrower as they mature; adjudication of bankruptcy or insolvency relative to the Borrower; the entry of an order for relief or similar order with respect to the Borrower in any proceeding pursuant to the Bankruptcy Code or any other federal bankruptcy law; the filing of any complaint, application, or petition by the Borrower initiating any matter in which the Borrower is or may be granted any relief from its debts generally pursuant to the Bankruptcy Code or any other insolvency statute or procedure of general application; the filing of any complaint, application, or petition against the Borrower initiating any matter in which the Borrower is or may be granted any relief from its debts generally pursuant to the Bankruptcy Code or any other insolvency statute or procedure of general application, which complaint, application, or petition is not timely contested in good faith by the Borrower by appropriate proceedings or, if so contested, is not dismissed within sixty (60) days of when filed.

 

10-13. Indictment - Forfeiture.  The indictment of, or institution of any legal process or proceeding against, the Borrower, under any federal, state, municipal, and other civil or criminal statute, rule, regulation, order, or other requirement having the force of law where the relief, penalties, or remedies sought or available include the forfeiture of any property of the Borrower and/or the imposition of any stay or other order, the effect of which would reasonably be expected to restrain in any material way the conduct by the Borrower of its business in the ordinary course.

 

10-14. Default by Guarantor or Subsidiary.  The occurrence of any of the foregoing Events of Default with respect to any Guarantor of the Liabilities, or the occurrence of any of the foregoing Events of Default with respect to any Subsidiary of the Borrower, as if such guarantor or Subsidiary were the “Borrower” described therein.

 

10-15. Termination of Guaranty. The termination or attempted termination of any Guaranty Agreement by any Guarantor of the Liabilities (other than in accordance with its terms or as permitted by the Lenders).

 

10-16. Challenge to Loan Documents.

 

(a) Any challenge by or on behalf of the Borrower or any guarantor of the Liabilities to the validity of any Loan Document or the applicability or enforceability of any Loan Document strictly in accordance with the subject Loan Document’s terms or which seeks to void, avoid, limit, or otherwise adversely affect any security interest created by or in any Loan Document or any payment made pursuant thereto.

 

(b) Any determination by any court or any other judicial or government authority that the Loan Documents, taken as a whole, are not enforceable strictly in accordance with their terms or which voids, avoids, limits, or otherwise adversely affects any security interest created by any Loan Document or any payment made pursuant thereto.

 

10-17. Intentionally Omitted.

 

 

  

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10-18. Change in Control.  Any Change in Control.

 

Article 11 - Rights and Remedies Upon Default:

 

In addition to all of the rights, remedies, powers, privileges, and discretions which the Lender is provided prior to the occurrence of an Event of Default, the Lender shall have the following rights and remedies upon the occurrence, and during the continuance, of any Event of Default.

 

11-1. Rights of Enforcement.  The Lender shall have all of the rights and remedies of a secured party upon default under the UCC, in addition to which the Lender shall have all and each of the following rights and remedies:

 

(a) To collect the Receivables Collateral with or without the taking of possession of any of the Collateral.

 

(b) To take possession of all or any portion of the Collateral.

 

(c) To sell, lease, or otherwise dispose of any or all of the Collateral, in its then condition or following such preparation or processing as the Lender deems advisable and with or without the taking of possession of any of the Collateral.

 

(d) To conduct one or more going out of business sales which include the sale or other disposition of the Collateral.

 

(e) To apply the Receivables Collateral or the Proceeds of the Collateral towards (but not necessarily in complete satisfaction of) the Liabilities.

 

(f) To exercise all or any of the rights, remedies, powers, privileges, and discretions under all or any of the Loan Documents.

 

11-2. Sale of Collateral.

 

(a) Any sale or other disposition of the Collateral may be at public or private sale upon such terms and in such manner as the Lender deems advisable, having due regard to compliance with any statute or regulation which might affect, limit, or apply to the Lender’s  disposition of the Collateral.

 

(b) The Lender, in the exercise of the Lender’s rights and remedies upon default, may conduct one or more going out of business sales, in the Lender’s own right or by one or more agents and contractors. Such sale(s) may be conducted upon any premises owned, leased, or occupied by the Borrower.  The Lender and any such agent or contractor, in conjunction with any such sale, may augment the Inventory with other goods (all of which other goods shall remain the sole property of the Lender or such agent or contractor).  Any amounts realized from the sale of such goods which constitute augmentations to the Inventory (net of an allocable share of the costs and expenses incurred in their disposition) shall be the sole property of the Lender or such agent or contractor and neither the Borrower nor any Person claiming under or in right of the Borrower shall have any interest therein.

 

 

  

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(c) Unless the Collateral is perishable or threatens to decline speedily in value, or is of a type customarily sold on a recognized market (in which event the Lender shall provide the Borrower with such notice as may be practicable under the circumstances), the Lender shall give the Borrower at least ten (10) days prior written notice of the date, time, and place of any proposed public sale, and of the date after which any private sale or other disposition of the Collateral may be made.  The Borrower agrees that such written notice shall satisfy all requirements for notice to the Borrower which are imposed under the UCC or other applicable law with respect to the exercise of the Lender’s rights and remedies upon default.

 

(d) The Lender may purchase the Collateral, or any portion of it at any sale held under this Article (to the extent permitted by applicable law).

 

(e) The Lender shall apply the proceeds of any exercise of the Lender’s Rights and Remedies under this Article 11 towards the Liabilities in the following order:

 

	 	
First:

	
To all costs and expenses incurred by the Lender under this Agreement, or any other Loan Document, including all Costs of Collection.

 

	
  

	
Second:

	
To accrued and unpaid interest on the Revolving Credit Loans until all accrued and unpaid interest on the Revolving Credit Loans has been paid in full.

 

	 	
Third:

	
To the principal balance of the Revolving Credit Loans, until the unpaid principal balance of the Revolving Credit Loans has been paid in full.

 

	
  

	
Fourth:

	
To all fees due under this Agreement or any other Loan Document, until the remaining balance of all fees (including L/C Fees, Line (Unused Fees)) have been paid in full.

 

	 	
Fifth:

	
To all other Liabilities, including without limitation, on account of Bank Products and Cash Management Services, until such Liabilities have been paid in full.

 

	 	
Sixth:

	
As provided under applicable law, to each Person then entitled thereto.

 

11-3. Occupation of Business Location. In connection with the Lender’s exercise of the Lender’s rights under this Article 11, the Lender may enter upon, occupy, and use any premises owned or occupied by the Borrower, and may exclude the Borrower from such premises or portion thereof as may have been so entered upon, occupied, or used by the Lender. The Lender shall not be required to remove any of the Collateral from any such premises upon the Lender’s taking possession thereof, and may render any Collateral unusable to the Borrower.  In no event shall the Lender be liable to the Borrower for use or occupancy by the Lender of any premises pursuant to this Article 11, nor for any charge (such as wages for the Borrower’s employees and utilities) incurred in connection with the Lender’s exercise of the Lender’s Rights and Remedies, except for such charges which are incurred as a result of the Lender’s gross negligence or willful misconduct.

 

 

  

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11-4. Grant of Nonexclusive License.  The Borrower hereby grants to the Lender a royalty free nonexclusive irrevocable license, exercisable upon the occurrence, and during the continuance, of an Event of Default, to use, apply, and affix any trademark, trade name, logo, or the like in which the Borrower now or hereafter has rights, such license being with respect to the Lender’s exercise of the rights hereunder including, without limitation, in connection with any completion of the manufacture of Inventory or sale or other disposition of Inventory. In exercising its rights under such license, the Lender shall use reasonable efforts to preserve and maintain any such trademark, trade name, or logo, but nothing contained herein shall obligate the Lender to undertake (or refrain from undertaking) any specific action and the Lender shall, under no circumstances, have any liability to the Borrower, except for such which are a result of the Lender’s gross negligence or willful misconduct.

 

11-5. Assembly of Collateral. The Lender may require the Borrower to assemble the Collateral and make it available to the Lender at the Borrower’s sole risk and expense at a place or places which are reasonably convenient to both the Lender and Borrower.

 

11-6. Rights and Remedies. The rights, remedies, powers, privileges, and discretions of the Lender hereunder (herein, the “ Lender’s Rights and Remedies”) shall be cumulative and not exclusive of any rights or remedies which it would otherwise have.  No delay or omission by the Lender in exercising or enforcing any of the Lender’s Rights and Remedies shall operate as, or constitute, a waiver thereof.  No waiver by the Lender of any Event of Default or of any default under any other agreement shall operate as a waiver of any other default hereunder or under any other agreement.  No single or partial exercise of any of the Lender’s Rights or Remedies, and no express or implied agreement or transaction of whatever nature entered into between the Lender and any person, at any time, shall preclude the other or further exercise of the Lender’s Rights and Remedies.  No waiver by the Lender of any of the Lender’s Rights and Remedies on any one occasion shall be deemed a waiver on any subsequent occasion, nor shall it be deemed a continuing waiver.  All of the Lender’s Rights and Remedies and all of the Lender’s rights, remedies, powers, privileges, and discretions under any other agreement or transaction are cumulative, and not alternative or exclusive, and may be exercised by the Lender at such time or times and in such order of preference as the Lender in its sole discretion may determine.  The Lender’s Rights and Remedies may be exercised without resort or regard to any other source of satisfaction of the Liabilities.

 

Article 12 - Notices:

 

12-1. Notice Addresses.  All notices, demands, and other communications made in respect of this Agreement (other than a request for a loan or advance or other financial accommodation under the Revolving Credit) shall be made to the following addresses, each of which may be changed upon seven (7) days written notice to all others given by certified mail, return receipt requested:

 

If to the Lender:

 

 

  

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Bank of America, N.A.

 

100 Federal Street, 9th Floor

 

Boston, Massachusetts 02110

 

Attention                      : Christine Hutchinson

 

          Vice President

 

Fax                                : (617) 790-1234

 

Email: christine.hutchinson@bankofamerica.com

 

With a copy to:

 

Riemer & Braunstein LLP

 

Three Center Plaza

 

Boston, Massachusetts  02108

 

Attention                      :  David S. Berman, Esquire

 

Fax                                : (617) 880-3456

 

Email: dberman@riemerlaw.com

 

If to the Borrower:

 

Aeropostale, Inc.

 

201 Willowbrook Blvd.

 

Wayne, New Jersey 07470

 

Attention                      : Joseph Pachella, VP and Treasurer

 

Fax                                : (201) 581-0399

 

Email: jpachella@aeropostale.com

 

With a Copy to:

 

Edward M. Slezak, Esquire

 

General Counsel

 

Aeropostale, Inc.

 

112 West 34th Street, 22nd Floor

 

New York, New York 10120

 

Fax: (646) 619-4873

 

Email: eslezak@aeropostale.com

 

12-2. Notice Given.

 

(a) Except as otherwise specifically provided herein, notices shall be deemed made and correspondence received, as follows (all times being local to the place of delivery or receipt):

 

(i) By mail: the sooner of when actually received or three (3) days following deposit in the United States mail, postage prepaid.

 

(ii) By recognized overnight express delivery: the Business Day following the day when sent.

 

 

 

  

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(iii) By Hand: If delivered on a Business Day after 9:00 AM and no later than three (3) hours prior to the close of customary business hours of the recipient, when delivered.  Otherwise, at the opening of the then next Business Day.

 

(iv) By Facsimile or electronic transmission (which must include a header on which the party sending such transmission is indicated): If sent on a Business Day after 9:00 AM and no later than three (3) hours prior to the close of customary business hours of the recipient, one (1) hour after being sent.  Otherwise, at the opening of the then next Business Day.

 

(b) Rejection or refusal to accept delivery and inability to deliver because of a changed address or Facsimile Number for which no due notice was given shall each be deemed receipt of the notice sent.

 

Article 13 - Term:

 

13-1. Termination of Revolving Credit.  The Revolving Credit shall remain in effect (subject to suspension as provided in Section 2-5(h) hereof) until the Termination Date.

 

13-2. Effect of Termination.  On the Termination Date, the Borrower shall pay the Lender (whether or not then due), in immediately available funds, all then Liabilities (other than indemnities, not then due and payable, which survive repayment of the Revolving Credit Loans and L/Cs and termination of the Commitments), including, without limitation: the entire balance of the Loan Account; any accrued and unpaid Line (Unused) Fee; any payments due on account of the indemnification obligations included in Section 2-9(e); and all unreimbursed costs and expenses of the Lender for which the Borrower is responsible; and shall make such arrangements concerning any L/C’s then outstanding are reasonably satisfactory to the Lender.  Until such payment, all provisions of this Agreement, other than those contained in Article 2 which place an obligation on the Lender to make any loans or advances or to provide financial accommodations under the Revolving Credit or otherwise, shall remain in full force and effect until all Liabilities (other than indemnities, not then due and payable, which survive repayment of the Revolving Credit Loans and L/Cs and termination of the Commitments) shall have been paid in full.  The release by the Lender of the security and other collateral interests granted the Lender by the Borrower hereunder may be upon such conditions and indemnifications as the Lender may reasonably require to protect the Lender against and chargebacks, credits, returned items and any other reversal of payments which had been received by the Lender and applied toward such Liabilities.

 

Article 14 - General:

 

14-1. Protection of Collateral.  The Lender has no duty as to the collection or protection of the Collateral beyond the safe custody of such of the Collateral as may come into the possession of the Lender and shall have no duty as to the preservation of rights against prior parties or any other rights pertaining thereto.  With the Borrower’s prior approval (which shall not be unreasonably delayed or withheld), the Lender may include reference to the Borrower (and may utilize any logo or other distinctive symbol associated with the Borrower) in connection with any advertising, promotion, or marketing undertaken by the Lender.

 

 

  

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14-2. Successors and Assigns. This Agreement shall be binding upon the Borrower and the Borrower’s representatives, successors, and assigns and shall inure to the benefit of the Lender and its successors and assigns, provided, however, no trustee or other fiduciary appointed with respect to the Borrower shall have any rights hereunder.  In the event that the Lender, in accordance with the provisions of Section 2-23 hereof, assigns or transfers its rights under this Agreement, the assignee shall thereupon succeed to and become vested with all rights, powers, privileges, and duties of such assignor hereunder and such assignor shall thereupon be discharged and relieved from its duties and obligations hereunder.

 

14-3. Severability.  Any determination that any provision of this Agreement or any application thereof is invalid, illegal, or unenforceable in any respect in any instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality, or enforceability of any other provision of this Agreement.

 

14-4. Amendments.  Course of Dealing.

 

(a) This Agreement and the other Loan Documents incorporate all discussions and negotiations between the Borrower and the Lender, either express or implied, concerning the matters included herein and in such other instruments, any custom, usage, or course of dealings to the contrary notwithstanding.  No such discussions, negotiations, custom, usage, or course of dealings shall limit, modify, or otherwise affect the provisions thereof.  No failure by the Lender to give notice to the Borrower of the Borrower’s having failed to observe and comply with any warranty or covenant included in any Loan Document shall constitute a waiver of such warranty or covenant or the amendment of the subject Loan Document.

 

(b) The Borrower may undertake any action otherwise prohibited hereby, and may omit to take any action otherwise required hereby, upon and with the express prior written consent of the Lender.  No consent, modification, amendment, or waiver of any provision of any Loan Document shall be effective unless executed in writing by or on behalf of the party to be charged with such modification, amendment, or waiver (and if such party is the Lender, then by a duly authorized officer thereof). Any modification, amendment, or waiver provided by the Lender shall be in reliance upon all representations and warranties theretofore made to the Lender by or on behalf of the Borrower (and any guarantor, endorser, or surety of the Liabilities) and consequently may be rescinded in the event that any of such representations or warranties was not true and complete in all material respects when given.

 

14-5. Power of Attorney.  In connection with all powers of attorney included in this Agreement, the Borrower hereby grants unto the Lender full power to do any and all things necessary or appropriate in connection with the exercise of such powers as fully and effectually as the Borrower might or could do, hereby ratifying all that said attorney shall do or cause to be done by virtue of this Agreement.  No power of attorney set forth in this Agreement shall be affected by any disability or incapacity suffered by the Borrower and each shall survive the same. All powers conferred upon the Lender by this Agreement, being coupled with an interest, shall be irrevocable until this Agreement is terminated by a written instrument executed by a duly authorized officer of the Lender.

 

 

  

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14-6. Application of Proceeds.  Except as otherwise provided in Section 11-2(e) hereof, the proceeds of any collection, sale, or disposition of the Collateral, or of any other payments received hereunder, shall be applied towards the Liabilities in such order and manner as the Lender determines in its sole discretion.  The Borrower shall remain liable for any deficiency remaining following such application.

 

14-7. Costs and Expenses of Lender.

 

(a) The Borrower shall pay on demand all Costs of Collection and all reasonable expenses of the Lender in connection with the preparation, execution, and delivery of this Agreement and of any other Loan Documents, whether now existing or hereafter arising, and all other reasonable expenses which may be incurred by the Lender in preparing or amending this Agreement and all other agreements, instruments, and documents related thereto, or otherwise incurred with respect to the Liabilities, and all other costs and expenses of the Lender which relate to the credit facility contemplated hereby.

 

(b) The Borrower shall pay on demand all costs and expenses (including reasonable attorneys’ fees) incurred, following the occurrence, and during the continuance, of any Event of Default, by the Lender in connection with the enforcement, attempted enforcement, or preservation of any rights and remedies under this, or any other Loan Document, as well as any such costs and expenses in connection with any “workout”, forbearance, or restructuring of the credit facility contemplated hereby.

 

(c) The Borrower authorizes the Lender to pay all such fees and expenses and in the Lender’s discretion, to add such fees and expenses to the Loan Account.

 

(d) The undertaking on the part of the Borrower in this Section 14-7 shall survive payment of the Liabilities and/or any termination, release, or discharge executed by the Lender in favor of the Borrower, other than a termination, release, or discharge which makes specific reference to this Section 14-7.

 

14-8. Copies and Facsimiles. This Agreement and all documents which relate thereto, which have been or may be hereinafter furnished the Lender may be reproduced by the Lender by any photographic, microfilm, xerographic, digital imaging, or other process, and the Lender may destroy any document so reproduced.  Any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made in the regular course of business). Any facsimile which bears proof of transmission shall be binding on the party which or on whose behalf such transmission was initiated and likewise shall be so admissible in evidence as if the original of such facsimile had been delivered to the party which or on whose behalf such transmission was received.

 

14-9. Massachusetts Law. This Agreement and all rights and obligations hereunder, including matters of construction, validity, and performance, shall be governed by the laws of The Commonwealth of Massachusetts.

 

 

  

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14-10. Consent to Jurisdiction.

 

(a) The Borrower agrees that any legal action, proceeding, case, or controversy against the Borrower with respect to any Loan Document may be brought in the Superior Court of Suffolk County Massachusetts or in the United States District Court, District of Massachusetts, sitting in Boston, Massachusetts, as the Lender may elect in the Lender’s sole discretion.  By execution and delivery of this Agreement, the Borrower, for itself and in respect of its property, accepts, submits, and consents generally and unconditionally, to the non-exclusive jurisdiction of the aforesaid courts.

 

(b) The Borrower WAIVES personal service of any and all process upon it, and irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by certified mail, postage prepaid, to the Borrower at the Borrower’s address for notices as specified herein, such service to become effective ten (10) Business Days after such mailing.

 

(c) The Borrower WAIVES any objection based on forum non conveniens and any objection to venue of any action or proceeding instituted in the aforesaid courts under any of the Loan Documents.

 

(d) Nothing herein shall affect the right of the Lender to bring legal actions or proceedings in any other competent jurisdiction.

 

(e) The Borrower agrees that any action commenced by the Borrower asserting any claim or counterclaim arising under or in connection with this Agreement or any other Loan Document shall be brought solely in the Superior Court of Suffolk County Massachusetts or in the United States District Court, District of Massachusetts, sitting in Boston, Massachusetts, and that such Courts shall have exclusive jurisdiction with respect to any such action.

 

14-11. Indemnification.  The Borrower shall indemnify, defend, and hold the  Lender and any employee, officer, or agent of the Lender (each, an “Indemnified Person”) harmless of and from any claim brought or threatened against any Indemnified Person by the Borrower, any guarantor or endorser of the Liabilities, or any other Person (as well as from reasonable attorneys’ fees and expenses in connection therewith) on account of the relationship of the Borrower or of any other guarantor or endorser of the Liabilities with the Lender (each, an “Indemnified Claim”) other than any claim resulting from the gross negligence or willful misconduct of such Indemnified Person.  Each Indemnified Claim may be defended, compromised, settled, or pursued by the Indemnified Person with counsel of the Lender’s selection (and if such Indemnified Claim is brought by a Person other than the Borrower, any guarantor or endorser of the Liabilities or any Affiliate of the Borrower, after consultation with (but not approval of) the Borrower regarding the selection of such counsel), but at the expense of the Borrower, provided that any Indemnified Claim may not be settled without the consent of the Borrower (which shall not be unreasonably withheld or delayed) if as the result of any such settlement the Borrower will be obligated to make any payment (other than reimbursement of the reasonable costs and expenses of  the Indemnified Person). This indemnification shall survive payment of the Liabilities and/or any termination, release, or discharge executed by the Lender in favor of the Borrower, other than a termination, release, or discharge which makes specific reference to this Section 14-11.

 

 

  

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14-12. Rules of Construction. The following rules of construction shall be applied in the interpretation, construction, and enforcement of this Agreement and of the other Loan Documents:

 

(a) Words in the singular include the plural and words in the plural include the singular.

 

(b) Titles, headings (indicated by being underlined or shown in Small Capitals) and any Table of Contents are solely for convenience of reference; do not constitute a part of the instrument in which included; and do not affect such instrument’s meaning, construction, or effect.

 

(c) The words “includes” and “including” are not limiting.

 

(d) Text which follows the words “including, without limitation” (or similar words) is illustrative and not limitational.

 

(e) Except where the context otherwise requires or where the relevant subsections are joined by “or”, compliance with any Section or provision of any Loan Document which constitutes a warranty or covenant requires compliance with all subsections (if any) of that Section or provision.  Except where the context otherwise requires, compliance with any warranty or covenant of any Loan Document which includes subsections which are joined by “or” may be accomplished by compliance with any of such subsections.

 

(f) Text which is shown in italics, shown in bold, shown IN ALL CAPITAL LETTERS, or in any combination of the foregoing, shall be deemed to be conspicuous.

 

(g) The words “may not” are prohibitive and not permissive.

 

(h) The word “or” is not exclusive.

 

(i) Terms which are defined in one section of any Loan Document are used with such definition throughout the instrument in which so defined.

 

(j) The symbol “$” refers to United States Dollars.

 

(k) Unless limited by reference to a particular Section or provision, any reference to “herein”, “hereof”, or “within” is to the entire Loan Document in which such reference is made.

 

(l) References to “this Agreement” or to any other Loan Document is to the subject instrument as amended to the date on which application of such reference is being made.

 

 

  

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(m) Except as otherwise specifically provided, all references to time are to Boston time.

 

(n) In the determination of any notice, grace, or other period of time prescribed or allowed hereunder:

 

(i) Unless otherwise provided (A) the day of the act, event, or default from which the designated period of time begins to run shall not be included and the last day of the period so computed shall be included unless such last day is not a Business Day, in which event the last day of the relevant period shall be the then next Business Day and (B) the period so computed shall end at 5:00 PM on the relevant Business Day.

 

(ii) The word “from” means “from and including”.

 

(iii) The words “to” and “until” each mean “to, but excluding”.

 

(iv) The word “through” means “to and including”.

 

(o) References to “presently”, “currently”, “Second Amendment Effective Date of this Agreement”, and other similar expressions mean the date of this Agreement.

 

(p) The term “upon the occurrence, and during the continuance, of an Event of Default”, “upon the occurrence, and during the continuance, of Default Interest Event” and any other similar term means the occurrence of an Event of Default or a Default Interest Event which has not been (i) waived by the Lender, or (ii) resolved to the reasonable satisfaction of the Lender. For purposes hereof, an Event of Default shall be deemed “resolved to the reasonable satisfaction of the Lender” if (A) the Lender has not theretofore exercised any of its rights and remedies on account of the existence of such Event of Default, and (B) the matter giving rise to such Event of Default has been fully remediated by the Borrower, provided, however, that (1) nothing contained herein shall furnish the Borrower with any additional cure periods beyond those set forth in Article 10, if any, prior to an event constituting an “Event of Default”, (2) notwithstanding the foregoing, any Event of Default under Article 7, or Sections 10-1, 10-2, 10-11, or 10-12 hereof may only be waived by the Lender and shall not ever be deemed “resolved to the reasonable satisfaction of the Lender”, and (3) the Borrower may not resolve any occurrences which constitute Events of Default to the reasonable satisfaction of the Lender on more than four (4) occasions in any fiscal year.

 

(q) The Loan Documents shall be construed and interpreted in a harmonious manner and in keeping with the intentions set forth in Section 14-13 hereof, provided, however, in the event of any inconsistency between the provisions of this Agreement and any other Loan Document, the provisions of this Agreement shall govern and control.

 

14-13. Intent. It is intended that:

 

(a) This Agreement take effect as a sealed instrument.

 

 

  

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(b) The scope of the security interests created by this Agreement be broadly construed in favor of the Lender.

 

(c) The security interests created by this Agreement secure all Liabilities, whether now existing or hereafter arising.

 

(d) All reasonable costs and expenses (other than  overhead costs) incurred by the Lender in connection with its relationship with the Borrower shall be borne by the Borrower.

 

(e) Unless otherwise explicitly provided herein, the Lender’s consent to any action of the Borrower which is prohibited unless such consent is given may be given or refused by the Lender in its reasonable discretion and without reference to Section 2-16 hereof.

 

14-14. Right of Set-Off. Any and all deposits (other than Trust Deposit Accounts) or other sums at any time credited by or due to the Borrower from the Lender, or any participant (a “Participant”) in the credit facility contemplated hereby or any from any Affiliate of the Lender, or any Participant and any cash, securities, instruments or other property of the Borrower in the possession of the Lender, any Participant or any such Affiliate, whether for safekeeping or otherwise (regardless of the reason such Person had received the same) shall at all times constitute security for all Liabilities and for any and all obligations of the Borrower to the  Lender or any Participant or any such Affiliate and may be applied or set off against the Liabilities and against such obligations at any time, whether or not such are then due and whether or not other collateral is then available to the Lender or any Participant or any such Affiliate.

 

14-15. Maximum Interest Rate. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Revolving Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by the Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable law, (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 Liabilities hereunder.

 

14-16. Waivers.

 

(a) The Borrower (and all guarantors, endorsers, and sureties of the Liabilities) make each of the waivers included in Section 14-16(b), below, knowingly, voluntarily, and intentionally, and understands that the Lender, in entering into the financial arrangements contemplated hereby and in providing loans and other financial accommodations to or for the account of the Borrower as provided herein, whether not or in the future, is relying on such waivers.

 

 

  

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(b) THE BORROWER, AND EACH SUCH GUARANTOR, ENDORSER, AND SURETY RESPECTIVELY WAIVES THE FOLLOWING:

 

(i) Except as otherwise specifically required hereby, and to the extent permissible under applicable law, notice of non-payment, demand, presentment, protest and all forms of demand and notice, both with respect to the Liabilities and the Collateral.

 

(ii) Except as otherwise specifically required hereby, and to the extent permissible under applicable law, the right to notice and/or hearing prior to the Lender’s  exercising of the Lender’s rights upon default.

 

(iii) THE RIGHT TO A JURY IN ANY TRIAL OF ANY CASE OR CONTROVERSY IN WHICH THE LENDER IS OR BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY IS INITIATED BY OR AGAINST THE LENDER OR IN WHICH THE LENDER IS JOINED AS A PARTY LITIGANT), WHICH CASE OR CONTROVERSY ARISES OUT OF OR IS IN RESPECT OF, ANY RELATIONSHIP AMONGST OR BETWEEN THE BORROWER OR ANY OTHER PERSON AND THE LENDER (AND THE LENDER LIKEWISE WAIVES THE RIGHT TO A JURY IN ANY TRIAL OF ANY SUCH CASE OR CONTROVERSY).

 

(iv) Except to the extent that such may not be waived under applicable law, the benefits or availability of any stay, limitation, hindrance, delay, or restriction with respect to any action which the Lender may or may become entitled to take hereunder.

 

(v) Any defense, counterclaim, set-off, recoupment, or other basis on which the amount of any Liability, as stated on the books and records of the Lender, could be reduced or claimed to be paid otherwise than in accordance with the tenor of and written terms of such Liability.

 

(vi) Any claim against the Lender to consequential, special, or punitive damages.

 

14-17. Confidentiality. The Lender shall keep, and shall cause its officers, directors, employees, affiliates and attorneys to keep, all financial statements, reports and other proprietary information furnished to it by the Borrower, the Guarantor or their respective Affiliates (hereinafter collectively, the “Information”) confidential and shall not disclose such Information, or cause such Information to be disclosed, to any Person, provided, however, that (i) the Information may be disclosed to the Lender’s officers, directors, employees, affiliates, attorneys and other advisors as need to know the Information in connection with the Lender’s administration of the Liabilities; (ii) the Information may be disclosed to any regulatory or other governmental authorities having jurisdiction over the Lender as required in connection with the exercise of their regulatory activity; (iii) the Information may be disclosed to any prospective assignee or participant, who has agreed to be bound by the provisions of this Section  14-17; (iv) the Information may be disclosed in connection with the enforcement of the Liabilities by the Lender to the extent required in connection therewith; and (v) the Information may otherwise be disclosed to the extent required by law.  Notwithstanding anything herein to the contrary, “Information” shall not include, and Lender (and each employee, representative, or other agent of the Lender) may disclose to any and all Persons without limitation of any kind, any information with respect to the “tax treatment” and “tax structure” (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including options or other tax analyses) that are provided to the Lender (and each employee, representative, or other agent of the Lender) relating to such tax treatment and tax structure; provided, that with respect to any document or similar item that in either case contains information concerning the tax treatment or tax structure of the transaction as well as other information, this sentence shall only apply to such portions of the document or similar item that relate to the tax treatment or tax structure of the Revolving Credit, the L/Cs and other transactions contemplated hereby.

 

 

  

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14-18. Press Releases.Once the Borrower has filed this Agreement with the Securities and Exchange Commission and disseminated a corresponding Press Release regarding this Agreement, then Borrower consents to the publication by the Lender of advertising material relating to the financing transactions contemplated by this Agreement using the Borrower’s name, product photographs, logo or trademark.  The Lender shall provide a draft reasonably in advance of any advertising material to the Borrower for review and comment prior to the publication thereof.  Subject to the conditions contained in this Section 14-18, the Lender reserves the right to provide to industry trade organizations information necessary and customary for inclusion in league table measurements.

 

14-19. No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby, the Loan Parties acknowledge and agree that: (i) the credit facility provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Loan Party, on the one hand, and the Lender, on the other hand, and each of the Loan Parties is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, the Lender is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Loan Parties or any of their respective Affiliates, stockholders, creditors or employees or any other Person; (iii) the Lender has not assumed and will not assume an advisory, agency or fiduciary responsibility in favor of the Loan Parties with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether the Lender has advised or is currently advising the Loan Parties or any of their respective Affiliates on other matters) and the Lender has no any obligation to the Loan Parties or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; (iv) the Lender and its Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Loan Parties and their respective Affiliates, and the Lender has no obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Lender has not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and each of the Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate.  Each of the Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against the Lender with respect to any breach or alleged breach of agency or fiduciary duty.

 

 

  

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14-20. USA PATRIOT Act Notice. The Lender hereby notifies the Loan Parties that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Loan Parties, which information includes the name and address of each such Person and other information that will allow the Lender to identify the Loan Parties in accordance with the Act. Each of the Loan Parties is in compliance, in all material respects, with the Patriot Act.  No part of the proceeds of the Revolving Loans will be used by the Loan Parties, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

14-21. Existing Loan Agreement Amended and Restated.  This Agreement shall amend and restate the Existing Loan Agreement in its entirety.  On the Second Amendment Effective Date, the rights and obligations of the parties under the Existing Loan Agreement shall be subsumed within and be governed by this Agreement; provided, however, that each of the “Revolving Credit Loans” (as such term is defined in the Existing Loan Agreement) outstanding under the Existing Loan Agreement on the Second Amendment Effective Date shall, for purposes of this Agreement, be included as  Revolving Credit Loans hereunder and each of the “L/Cs” (as defined in the Existing Loan Agreement) outstanding under the Existing Loan Agreement on the Second Amendment Effective Date shall be L/Cs hereunder.

 

[signature pages follow]

  

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date above first written.  This Agreement shall take effect as a sealed instrument.

AEROPOSTALE, INC.

(“Borrower”)

	 	
By:

	
/s/ Michael J. Cunningham

	 	
Name:

	
Michael J. Cunningham

	 	
Title:

	
Executive Vice President and

	 	  	
Chief Financial Officer

BANK OF AMERICA, N.A.

(“Lender”)

	 	
By:

	
/s/ Kathleen A. Dimock

	 	
Name:

	
Kathleen A. Dimock

	 	
Title:

	
Managing Director

1041615.7

  

[Signature Page to Second Amended and Restated Loan and Security Agreement]

  

 

Exhibit 2.8

Revolving Credit Note

AMENDED AND RESTATED REVOLVING CREDIT NOTE

Bank of America, N.A.

Boston, Massachusetts

November 13, 2007

FOR VALUE RECEIVED, the undersigned, Aeropostale, Inc., Inc., a Delaware corporation with its principal executive offices at 112 West 34th Street, New York, New York 10120 (the "Borrower") promises to pay to the order of Bank of America, N.A. (as assignee of Fleet Retail Finance Inc. (“Fleet”) pursuant to that certain Assignment and Acceptance dated as of even date herewith by and between Fleet, as Assignor, and Bank of America, N.A., as Assignee), a national banking association with offices at 100 Federal Street, 9th Floor, Boston, Massachusetts  02110 (hereinafter, with any subsequent holder, a "Lender") the aggregate unpaid principal balance of loans and advances made to or for the account of the Borrower pursuant to the Revolving Credit established pursuant to the Second Amended and Restated Loan and Security Agreement dated as of even date herewith (as such may be amended hereafter, the "Loan Agreement") among the Lender, the Guarantors party thereto, and the Borrower, with interest at the rate and payable in the manner stated therein.  All capitalized terms used but not defined herein shall have the meaning set forth in the Loan Agreement.

This is a "Revolving Credit Note" to which reference is made in the Loan Agreement and is subject to all terms and provisions thereof.  The principal of, and interest on, this Revolving Credit Note shall be payable as provided in the Loan Agreement and shall be subject to acceleration as provided therein.  This Revolving Credit Note replaces in its entirety that certain Revolving Credit Note dated October 7, 2003 by the Borrower, in favor of Fleet.

 

 

  

  

  

 

The Lender's books and records concerning loans and advances pursuant to the Revolving Credit, the accrual of interest thereon, and the repayment of such loans and advances, shall be prima facie evidence of the indebtedness to the Lender hereunder.

No delay or omission by the Lender in exercising or enforcing any of the Lender's powers, rights, privileges, remedies, or discretions hereunder shall operate as a waiver thereof on that occasion nor on any other occasion.  No waiver of any default hereunder shall operate as a waiver of any other default hereunder, nor as a continuing waiver.

The Borrower waives presentment, demand, notice, and protest, and also waives any delay on the part of the holder hereof; assents to any extension or other indulgence (including, without limitation, the release or substitution of collateral) permitted by the Lender with respect to this Revolving Credit Note and/or any collateral given to secure this Revolving Credit Note or any extension or other indulgence with respect to any other liability or any collateral given to secure any other liability of the Borrower.

This Revolving Credit Note shall be binding upon the Borrower and upon its successors, assigns, and representatives, and shall inure to the benefit of the Lender and its successors, endorsees, and assigns.

The liabilities of the Borrower, and of any endorser or guarantor of this Revolving Credit Note, are joint and several, provided, however, the release by the Lender of any one or more such Persons shall not release any other Person obligated on account of this Revolving Credit Note.  Each reference in this Revolving Credit Note to the Borrower, any endorser, and any guarantor, is to such Person individually and also to all such Persons jointly.  No Person obligated on account of this Revolving Credit Note may seek contribution from any other Person also obligated unless and until all liabilities, obligations and indebtedness to the Lender of the Person from whom contribution is sought have been satisfied in full.

This Revolving Credit Note is delivered to the Lender at its offices in Boston, Massachusetts, shall be governed by the laws of The Commonwealth of Massachusetts, and shall take effect as a sealed instrument.

The Borrower makes the following waiver knowingly, voluntarily, and intentionally, and understands that the Lender in the establishment and maintenance of its relationship with the Borrower contemplated by the within Revolving Credit Note, is relying thereon.  THE BORROWER, TO THE EXTENT ENTITLED THERETO, WAIVES ANY PRESENT OR FUTURE RIGHT OF THE BORROWER OR OF ANY OTHER PERSON LIABLE TO THE LENDER ON ACCOUNT OF OR IN RESPECT TO THE LIABILITIES, TO A TRIAL BY JURY IN ANY CASE OR CONTROVERSY IN WHICH THE LENDER IS OR BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY IS INITIATED BY OR AGAINST THE LENDER OR IN WHICH THE LENDER IS JOINED AS A PARTY LITIGANT), WHICH CASE OR CONTROVERSY ARISES OUT OF, OR IS IN RESPECT TO, ANY RELATIONSHIP AMONGST OR BETWEEN THE BORROWER, ANY SUCH PERSON, AND THE LENDER.

[Signature Page to Follow]

  

  

  

 

 

                 BORROWER:

Witness:

	
/s/ Joseph M. Pachella

	 
	 AEROPOSTALE, INC.	 

 

	 	
By:

	
/s/ Michael J. Cunningham

	 	
Name:

	
Michael J. Cunningham

	 	
Title:

	
Executive Vice President and

	 	  	
Chief Financial Officer

1043675.3

[Signature Page to Second Amended and Restated Loan and Security Agreement]

  

  

  

 

 

EXHIBIT 4-2

 

RELATED ENTITIES

 

   Other than the Guarantors, Aeropostale Canada, Inc.

 

 

 

 

 

 

 

  

  

  

 

 

Exhibit 4-3

Trade Names

 

    Aeropostale

    Jimmy'Z

 

 

 

 

 

 

  

  

  

 

 

Exhibit 4-5

 

Locations, Leases, and Landlords

 

(See Attached)

 

 

 

  

  

  

 

	
Store #

	  	
Store Name

	  	
Space #

	  	
City

	  	
State

	  	
Zip Code

	  	
Sq. Ft.

	  	
Developer

	  	
Developer Address

	
4

	  	
ADI

	  	  	  	
South River

	  	
New Jersey

	  	
8810

	  	
315,000

	  	
LIT-Northend LLC

	  	
2100 Mckinney Avenue

	  	
Suite 700

	  	
Dallas

	  	
TX

	  	
75201

	
5

	  	
Willowbrook Office

	  	
7th & 8th Floor

	  	
Wayne

	  	
New Jersey

	  	
7470

	  	
40,000

	  	
Willowbrook Center

	  	
2 Daniel Road

	  	  	  	
Fairfield

	  	
NJ

	  	
7004

	
11

	  	
Franklin Mills Mall

	  	  	  	
Philadelphia

	  	
Pennsylvania

	  	
19154

	  	
4,865

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
14

	  	
NYC Office

	  	  	  	
New York

	  	
New York

	  	
10017

	  	
59,121

	  	
Helmsley Spear

	  	
60 East 42nd Street

	  	  	  	
New York

	  	
NY

	  	
10017

	
19

	  	
Arizona Mills Mall

	  	  	  	
Tempe

	  	
Arizona

	  	
85282

	  	
4,255

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
20

	  	
Newport Center

	  	  	  	
Jersey City

	  	
New Jersey

	  	
7307

	  	
3,385

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
22

	  	
Stoneridge Mall

	  	  	  	
Pleasanton

	  	
California

	  	
95466

	  	
3,709

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
23

	  	
Bridgewater Commons

	  	
279

	  	
Bridgewater

	  	
New Jersey

	  	
8807

	  	
3,130

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
25

	  	
Parmatown Mall

	  	
#4

	  	
Parmatown

	  	
Ohio

	  	
44129

	  	
3,017

	  	
RMS Investment Company

	  	
7899 W Ridgewood Drive

	  	  	  	
Parma

	  	
OH

	  	
44129

	
27

	  	
Great Northern Mall

	  	  	  	
North Olmstead

	  	
Ohio

	  	
44070

	  	
3,423

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
28

	  	
Woodbridge Center

	  	  	  	
Woodbridge

	  	
New Jersey

	  	
7095

	  	
3,890

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
29

	  	
Nanuet Mall

	  	  	  	
Nanuet

	  	
New York

	  	
10954

	  	
3,900

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
30

	  	
Staten Island Mall

	  	
#247A

	  	
Staten Island

	  	
New York

	  	
10314

	  	
3,724

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
31

	  	
Rockaway Townsquare Mall

	  	
#128

	  	
Rockaway

	  	
New Jersey

	  	
7866

	  	
3,621

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
34

	  	
The Mall at Greece Ridge

	  	  	  	
Rochester

	  	
New York

	  	
14626

	  	
3,132

	  	
Wilmorite

	  	
1265 Scottsville Road

	  	  	  	
Rochester

	  	
NY

	  	
14624

	
35

	  	
Ross Park Mall

	  	  	  	
Pittsburgh

	  	
Pennsylvania

	  	
15237

	  	
3,584

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
36

	  	
The Mall at St Matthews

	  	
#1340

	  	
Louisville

	  	
Kentucky

	  	
40207

	  	
5,127

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
37

	  	
Cherry Hill Mall

	  	
#1230

	  	
Cherry Hill

	  	
New Jersey

	  	
8002

	  	
3,667

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
38

	  	
Valley Fair Shopping Center

	  	
#B577

	  	
Santa Clara

	  	
California

	  	
95050

	  	
2,864

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
41

	  	
River Oaks Center

	  	  	  	
Calumet City

	  	
Illinois

	  	
60409

	  	
2,778

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
43

	  	
Lycoming Mall

	  	
US Rts. 220 & 180

	  	
Pennsdale

	  	
Pennsylvania

	  	
17756

	  	
3,519

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
46

	  	
Lehigh Valley Mall

	  	  	  	
Whitehall

	  	
Pennsylvania

	  	
18052

	  	
4,020

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
48

	  	
South Hills Village

	  	  	  	
Upper St Clair

	  	
Pennsylvania

	  	
15241

	  	
3,590

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
49

	  	
Hamilton Mall

	  	  	  	
Mays Landing

	  	
New Jersey

	  	
8330

	  	
4,221

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
50

	  	
Square One Mall

	  	  	  	
Saugus

	  	
Massachusetts

	  	
1906

	  	
3,977

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
51

	  	
Dadeland Mall

	  	  	  	
Miami

	  	
Florida

	  	
33156

	  	
4,674

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
52

	  	
Sunrise Mall

	  	  	  	
Massapequa

	  	
New York

	  	
11758

	  	
3,290

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
54

	  	
Manhattan Mall

	  	  	  	
New York

	  	
New York

	  	
10001

	  	
4,326

	  	
Vomado

	  	
210 Route 4 East

	  	  	  	
Paramus

	  	
NJ

	  	
7652

	
56

	  	
Washington Crown Center

	  	
1500 W. Chestnut Street

	  	
Washington

	  	
Pennsylvania

	  	
15301-5864

	  	
3,436

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
57

	  	
Eastview Mall

	  	
#F9

	  	
Victor

	  	
New York

	  	
14564

	  	
3,600

	  	
Wilmorite

	  	
1265 Scottsville Road

	  	  	  	
Rochester

	  	
NY

	  	
14624

	
58

	  	
Garden State Plaza

	  	
#L1A

	  	
Paramus

	  	
New Jersey

	  	
7652

	  	
5,903

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
59

	  	
Marketplace Mall

	  	  	  	
Rochester

	  	
New York

	  	
14623

	  	
3,479

	  	
Wilmorite

	  	
1265 Scottsville Road

	  	  	  	
Rochester

	  	
NY

	  	
14624

	
60

	  	
Granite Run Mall

	  	  	  	
Media

	  	
Pennsylvania

	  	
19063

	  	
3,202

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
62

	  	
Walden Galleria

	  	
L213

	  	
Buffalo

	  	
New York

	  	
14225

	  	
3,073

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
63

	  	
Burlington Mall

	  	
C16A

	  	
Burlington

	  	
Massachusetts

	  	
1803

	  	
2,800

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
65

	  	
Del Amo Mall

	  	
#14

	  	
Torrance

	  	
California

	  	
90503

	  	
3,300

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
66

	  	
Roosevelt Field Mall

	  	
#1036 & 1037

	  	
Garden City

	  	
New York

	  	
11530

	  	
5,377

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
67

	  	
Smith Haven Mall

	  	
J03

	  	
Lake Grove

	  	
New York

	  	
11755

	  	
4,116

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
70

	  	
Emerald Square

	  	
D322

	  	
North Attleboro

	  	
Massachusetts

	  	
2760

	  	
2,853

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
71

	  	
Twelve Oaks Mall

	  	
D181

	  	
Novi

	  	
Michigan

	  	
48377

	  	
2,799

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
75

	  	
Poughkeepsie Galleria

	  	  	  	
Poughkeepsie

	  	
New York

	  	
12601

	  	
3,409

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
77

	  	
Hamilton Place

	  	
#267

	  	
Chattanooga

	  	
Tennessee

	  	
37421

	  	
2,593

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
78

	  	
Mall at Steamtown

	  	  	  	
Scranton

	  	
Pennsylvania

	  	
18503

	  	
4,645

	  	
Prizm Asset Mgt Co

	  	
300 Lackawanna Avenue

	  	  	  	
Scranton

	  	
PA

	  	
18503

	
79

	  	
Pentagon City

	  	
#1028

	  	
Arlington

	  	
Virginia

	  	
22202

	  	
3,840

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
84

	  	
Gwinnett Place

	  	  	  	
Duluth

	  	
Georgia

	  	
30096

	  	
3,383

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
85

	  	
Castleton Square

	  	  	  	
Indianapolis

	  	
Indiana

	  	
46250

	  	
4,030

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
86

	  	
Towne Center At Cobb

	  	  	  	
Kennesaw

	  	
Georgia

	  	
30144

	  	
4,098

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
87

	  	
Crossgates Mall

	  	
D206A

	  	
Albany

	  	
New York

	  	
12203

	  	
3,317

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
88

	  	
Scottsdale Fashion Square

	  	
#2129

	  	
Scottsdale

	  	
Arizona

	  	
85251

	  	
3,708

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
89

	  	
Jefferson Valley Mall

	  	  	  	
Yorktown Heights

	  	
New York

	  	
10598

	  	
3,384

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
90

	  	
Trumball Shopping Park

	  	  	  	
Trumball

	  	
Connecticut

	  	
6611

	  	
3,500

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
91

	  	
Concord Mall

	  	  	  	
Wilmington

	  	
Delaware

	  	
19803

	  	
3,600

	  	
Allied Properties

	  	
4737 Concord Pike

	  	  	  	
Wilmington

	  	
DE

	  	
19803

	
92

	  	
Oxford Valley Mall

	  	  	  	
Langhome

	  	
Pennsylvania

	  	
19047

	  	
3,896

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
93

	  	
Paramus Park Mall

	  	
#1675

	  	
Paramus

	  	
New Jersey

	  	
7652

	  	
4,240

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
99

	  	
Kings Plaza

	  	  	  	
Brooklyn

	  	
New York

	  	
11234

	  	
4,895

	  	
Vomado

	  	
210 Route 4 East

	  	  	  	
Paramus

	  	
NJ

	  	
7652

	
100

	  	
Willowbrook Mall

	  	
#1126

	  	
Wayne

	  	
New Jersey

	  	
7470

	  	
4,296

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
102

	  	
Park City Center

	  	
#C220

	  	
Lancaster

	  	
Pennsylvania

	  	
17601

	  	
3,786

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
103

	  	
Ohio Valley Mall

	  	
#320

	  	
St Clairsville

	  	
Ohio

	  	
43950

	  	
3,567

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
104

	  	
Los Cerritos Center

	  	  	  	
Cerritos

	  	
California

	  	
90703

	  	
3,900

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
105

	  	
Monroeville Mall

	  	  	  	
Monroeville

	  	
Pennsylvania

	  	
15146

	  	
3,845

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
106

	  	
Natick Mall

	  	  	  	
Natick

	  	
Massachusetts

	  	
1760

	  	
3,726

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
109

	  	
Belden Village

	  	  	  	
Canton

	  	
Ohio

	  	
44718

	  	
3,945

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
110

	  	
Dulles Town Center

	  	
#220

	  	
Dulles

	  	
Virginia

	  	
20166

	  	
3,000

	  	
Lemer

	  	
11501 Huff Court

	  	  	  	
North Bethesda

	  	
MD

	  	
20895

	
111

	  	
Lakeside Mall

	  	
D129

	  	
Sterling Heights

	  	
Michigan

	  	
48313

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
112

	  	
Holyoke Mall at Ingleside

	  	  	  	
Holyoke

	  	
Massachusetts

	  	
1040

	  	
3,136

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
113

	  	
Genesee Valley Center

	  	  	  	
Flint

	  	
Michigan

	  	
48507

	  	
4,500

	  	
The Mills Corp

	  	
3341 S Linden Road

	  	  	  	
Flint

	  	
MI

	  	
48507

	
114

	  	
Greenwood Park Mall

	  	  	  	
Indianapolis

	  	
Indiana

	  	
46142

	  	
3,406

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
115

	  	
Shoppingtown Mall

	  	
#229A

	  	
Dewitt

	  	
New York

	  	
13214

	  	
4,625

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
116

	  	
University Park Mall

	  	  	  	
Mishawaka

	  	
Indiana

	  	
46545

	  	
3,634

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
117

	  	
Cross County Shopping Center

	  	  	  	
Yonkers

	  	
New York

	  	
10704

	  	
3,154

	  	
Marx Realty & Improvement Co

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
120

	  	
St Charles Towne Center

	  	  	  	
Waldorf

	  	
Maryland

	  	
20603

	  	
3,369

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
121

	  	
Fiesta Mall

	  	
#1250

	  	
Mesa

	  	
Arizona

	  	
85202

	  	
3,635

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
123

	  	
Great Lakes Mall

	  	
#330

	  	
Mentor

	  	
Ohio

	  	
44060

	  	
3,482

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
124

	  	
West Town Mall

	  	
#1156

	  	
Knoxville

	  	
Tennessee

	  	
37919

	  	
2,990

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
127

	  	
Edison Mall

	  	  	  	
Fort Meyers

	  	
Florida

	  	
33901

	  	
3,500

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
129

	  	
Quaker Bridge Mall

	  	  	  	
Lawrenceville

	  	
New Jersey

	  	
8608

	  	
3,222

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
130

	  	
Livingston Mall

	  	
#1022

	  	
Livingston

	  	
New Jersey

	  	
7039

	  	
4,351

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
131

	  	
Ocean County Mall

	  	
#101L

	  	
Toms River

	  	
New Jersey

	  	
8753

	  	
3,645

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
132

	  	
Walt Whitman Mall

	  	
#1063

	  	
Huntington Station

	  	
New York

	  	
11746

	  	
4,354

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

 

 

  

  

  

 

	
133

	  	
Tri-County Mall

	  	
G-9

	  	
Cincinnati

	  	
Ohio

	  	
45246

	  	
2,500

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
134

	  	
Monmouth Mall

	  	  	  	
Eatontown

	  	
New Jersey

	  	
7724

	  	
3,598

	  	
Vornado

	  	
210 Route 4 East

	  	  	  	
Paramus

	  	
NJ

	  	
7652

	
135

	  	
Montgomery Mall

	  	
C1 &C2

	  	
North Wales

	  	
Pennsylvania

	  	
19454

	  	
4,046

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
136

	  	
White Plains

	  	
#489

	  	
White Plains

	  	
New York

	  	
10601

	  	
3,690

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
137

	  	
Willow Grove Park

	  	  	  	
Willow Grove

	  	
Pennsylvania

	  	
19090

	  	
3,124

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
138

	  	
Stonestown Galleria

	  	  	  	
San Francisco

	  	
California

	  	
94132

	  	
3,581

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
139

	  	
Galleria at Crystal Run

	  	
D209

	  	
Middletown

	  	
New York

	  	
10940

	  	
3,599

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
140

	  	
Carousel Center

	  	  	  	
Syracuse

	  	
New York

	  	
13290

	  	
3,070

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
141

	  	
Sun Valley Mall

	  	  	  	
Concord

	  	
California

	  	
94520

	  	
2,590

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
142

	  	
Hawthom Center

	  	
G6UL

	  	
Vernon Hills

	  	
Illinois

	  	
60061

	  	
3,268

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
143

	  	
Stratford Square Mall

	  	
B20

	  	
Bloomingdale

	  	
Illinois

	  	
60108

	  	
2,557

	  	
The Mills Corp

	  	
3225 N Central Avenue

	  	
Suite 1205

	  	
Phoenix

	  	
AZ

	  	
85012

	
144

	  	
Deptford Mall

	  	  	  	
Deptford

	  	
New Jersey

	  	
8096

	  	
4,404

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
145

	  	
Stamford Town Center

	  	  	  	
Stamford

	  	
Connecticut

	  	
6901

	  	
3,672

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
146

	  	
Woodfield Mall

	  	
G311

	  	
Schaumburg

	  	
Illinois

	  	
60173

	  	
5,124

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
147

	  	
Fox Valley Shopping Center

	  	  	  	
Aurora

	  	
Illinois

	  	
60504

	  	
4,086

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
148

	  	
Danbury Fair Mall

	  	  	  	
Danbury

	  	
Connecticut

	  	
6810

	  	
4,827

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
149

	  	
Eastern Hills Mali

	  	  	  	
Williamsville

	  	
New York

	  	
14221

	  	
3,550

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
150

	  	
Freehold Raceway Mall

	  	  	  	
Freehold

	  	
New Jersey

	  	
7728

	  	
2,981

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
151

	  	
Silver City Galleria Mall

	  	  	  	
Taunton

	  	
Massachusetts

	  	
2780

	  	
3,127

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
152

	  	
Christiana Mall

	  	  	  	
Newark

	  	
Delaware

	  	
19702

	  	
4,875

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
153

	  	
Columbia Mall

	  	
#153

	  	
Columbia

	  	
Maryland

	  	
21044

	  	
4,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
154

	  	
Menlo Park Mall

	  	  	  	
Edison

	  	
New Jersey

	  	
8837

	  	
4,000

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
157

	  	
Southlake Mall

	  	  	  	
Merrillville

	  	
Indiana

	  	
46410

	  	
4,598

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
158

	  	
Boulevard Mall

	  	  	  	
Amherst

	  	
New York

	  	
14226

	  	
4,731

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
159

	  	
Fairfield Mall

	  	  	  	
Beavercreek

	  	
Ohio

	  	
45431

	  	
3,731

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
160

	  	
Lynnhaven Mall

	  	
D06A

	  	
Virginia Beach

	  	
Virginia

	  	
23452

	  	
3,330

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
162

	  	
Seminole Towne Center

	  	  	  	
Sanford

	  	
Florida

	  	
32771

	  	
3,213

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
164

	  	
Chesterfield Towne Center

	  	  	  	
Midlothian

	  	
Virginia

	  	
23235

	  	
5,240

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
166

	  	
Queen Center

	  	  	  	
Elmhurst

	  	
New York

	  	
11373

	  	
3,823

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
167

	  	
Great Northern Mall

	  	  	  	
Clay

	  	
New York

	  	
13041

	  	
3,091

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
169

	  	
Sangertown Mall

	  	
G-02

	  	
New Hartford

	  	
Connecticut

	  	
13413

	  	
3,500

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
171

	  	
Westmoreland Malt

	  	
#218

	  	
Greensburg

	  	
Pennsylvania

	  	
15601

	  	
2,838

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
172

	  	
Dover Mall

	  	  	  	
Dover

	  	
Delaware

	  	
19901

	  	
4,274

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
174

	  	
Green Acres Mall

	  	  	  	
Valley Stream

	  	
New York

	  	
11581

	  	
6,056

	  	
Vornado

	  	
210 Route 4 East

	  	  	  	
Paramus

	  	
NJ

	  	
7652

	
175

	  	
Tippecanoe Mall

	  	  	  	
Lafayette

	  	
Indiana

	  	
47905

	  	
4,633

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
176

	  	
Fox Run Mall

	  	
#1

	  	
Newington

	  	
New Hampshire

	  	
3801

	  	
3,670

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
177

	  	
Pyramid Mall Ithaca

	  	
B07

	  	
Ithaca

	  	
New York

	  	
14850

	  	
3,533

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
178

	  	
Hudson Valley Mall

	  	  	  	
Kingston

	  	
New York

	  	
12401

	  	
3,600

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
183

	  	
Metrocenter Mall

	  	  	  	
Phoenix

	  	
Arizona

	  	
85051

	  	
3,702

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
184

	  	
Palisades Center

	  	
B203

	  	
West Nyack

	  	
New York

	  	
10994

	  	
3,549

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
185

	  	
South Shore Mall

	  	  	  	
Bay Shore

	  	
New York

	  	
11706

	  	
3,593

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
186

	  	
Owings Mills Mall

	  	
1106

	  	
Owings Mills

	  	
Maryland

	  	
21117

	  	
3,017

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
188

	  	
Stones River Mall

	  	  	  	
Murfreesboro

	  	
Tennessee

	  	
37129

	  	
3,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
189

	  	
Southland Shopping Center

	  	
1290

	  	
Taylor

	  	
Michigan

	  	
48180

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
190

	  	
Dayton Mall

	  	
252

	  	
Dayton

	  	
Ohio

	  	
45459

	  	
3,720

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
192

	  	
The Pavillions at Buckland Hills

	  	
1138

	  	
Manchester

	  	
Connecticut

	  	
6040

	  	
4,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
193

	  	
Exton Square Mall

	  	
2005

	  	
Exton

	  	
Pennsylvania

	  	
19341

	  	
3,360

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
194

	  	
Mall of New Hampshire

	  	
W123

	  	
Manchester

	  	
New Hampshire

	  	
3103

	  	
3,633

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
195

	  	
Crystal Mall

	  	
R207

	  	
Waterford

	  	
Connecticut

	  	
6385

	  	
2,842

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
196

	  	
Springfield Mali

	  	
GG10

	  	
Springfield

	  	
Virginia

	  	
22150

	  	
3,077

	  	
Vornado

	  	
210 Route 4 East

	  	  	  	
Paramus

	  	
NJ

	  	
7652

	
197

	  	
Annapolis Mall

	  	  	  	
Annapolis

	  	
Maryland

	  	
21401

	  	
3,974

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
198

	  	
Orland Square Shopping Center

	  	
B11

	  	
Chicago

	  	
Illinois

	  	
60462

	  	
3,081

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
200

	  	
Northshore Mall

	  	
E155

	  	
Peabody

	  	
Massachusetts

	  	
1960

	  	
3,467

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
201

	  	
Southern Park Mall

	  	
725

	  	
Youngstown

	  	
Ohio

	  	
44512

	  	
2,787

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
202

	  	
Great Lakes Crossing

	  	
859

	  	
Auburn Hills

	  	
Michigan

	  	
48326

	  	
3,184

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
203

	  	
Northwoods Mall

	  	
G532

	  	
Charleston

	  	
South Carolina

	  	
29406

	  	
4,072

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
204

	  	
Mall of America

	  	
N118

	  	
Bloomington

	  	
Minnesota

	  	
55425

	  	
4,077

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
205

	  	
Century Mall III

	  	
629

	  	
West Mifflin

	  	
Pennsylvania

	  	
15123

	  	
3,107

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
206

	  	
Hanes Mall

	  	
AL-120

	  	
Winston Salem

	  	
North Carolina

	  	
27103

	  	
3,961

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
207

	  	
Rivertown Crossing

	  	
2048

	  	
Grandville

	  	
Michigan

	  	
49418

	  	
3,549

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
208

	  	
Providence Place

	  	
B307

	  	
Providence

	  	
Rhode Island

	  	
2903

	  	
3,090

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
209

	  	
Meriden Square Mall

	  	
4068

	  	
Meriden

	  	
Connecticut

	  	
6451

	  	
3,436

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
214

	  	
Southpark Center

	  	
DL-408

	  	
Strongsville

	  	
Ohio

	  	
44136

	  	
3,424

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
215

	  	
Glenbrook Square Mall

	  	
E6

	  	
Fort Wayne

	  	
Indiana

	  	
46805

	  	
3,467

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
216

	  	
Market Place Shopping Center

	  	
340

	  	
Champaigne

	  	
Illinois

	  	
61820

	  	
3,826

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
218

	  	
Summit Mall

	  	
258A

	  	
Akron

	  	
Ohio

	  	
44333

	  	
3,139

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
219

	  	
Eastwood Mall

	  	
652

	  	
Niles

	  	
Ohio

	  	
44446

	  	
3,500

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
220

	  	
College Mall

	  	
M13A

	  	
Bloomington

	  	
Indiana

	  	
47401

	  	
3,523

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
221

	  	
Muncie Mall

	  	
L05

	  	
Muncie

	  	
Indiana

	  	
47303

	  	
3,698

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
222

	  	
Plymouth Meeting Mall

	  	
2100

	  	
Plymouth

	  	
Pennsylvania

	  	
19462

	  	
3,083

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
223

	  	
Haywood Mall

	  	
2045

	  	
Greenville

	  	
South Carolina

	  	
29605

	  	
3,442

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
224

	  	
Jersey Gardens

	  	
2076

	  	
Elizabeth

	  	
New Jersey

	  	
7201

	  	
2,543

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
225

	  	
Knoxville Center Mall

	  	
2187

	  	
Knoxville

	  	
Tennessee

	  	
37924

	  	
3,019

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
226

	  	
Meridian Mall

	  	
243

	  	
Lansing

	  	
Michigan

	  	
48864

	  	
3,630

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
227

	  	
Franklin Park Mall

	  	
520

	  	
Toledo

	  	
Ohio

	  	
43623

	  	
3,835

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
228

	  	
Potomac Mills Center

	  	
247

	  	
Woodbridge

	  	
Virginia

	  	
22192

	  	
3,561

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
229

	  	
Coventry Mail

	  	
C8

	  	
Pottstown

	  	
Pennsylvania

	  	
19465

	  	
2,958

	  	
Stoltz Management

	  	
Routes 724 & 100

	  	  	  	
Pottstown

	  	
PA

	  	
19465

	
230

	  	
Coolsprings Galleria

	  	
2430

	  	
Franklin

	  	
Tennessee

	  	
37067

	  	
2,418

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
231

	  	
Fairlane Town Center

	  	
N314

	  	
Dearborn

	  	
Michigan

	  	
48126

	  	
3,047

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
233

	  	
Colonial Mall Gadsden

	  	
47

	  	
Gadsden

	  	
Alabama

	  	
35901

	  	
3,165

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

 

 

 

  

  

  

 

 

 

	
234

	  	
Colonial Park Mall

	  	
15

	  	
Harrisburg

	  	
Pennsylvania

	  	
17109

	  	
3,125

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
235

	  	
Hickory Hollow Mall

	  	
2111/2113

	  	
Antioch

	  	
Tennessee

	  	
37013

	  	
3,597

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
236

	  	
Pheasant Lane Mall

	  	
E145

	  	
Nashua

	  	
New Hampshire

	  	
3060

	  	
2,630

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
237

	  	
Beaver Valley Mall

	  	
640

	  	
Monaca

	  	
Pennsylvania

	  	
15061

	  	
4,000

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
238

	  	
Honey Creek

	  	
B2

	  	
Terre Haute

	  	
Indiana

	  	
44310

	  	
3,667

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
239

	  	
RiverGate Mall

	  	
A6A

	  	
Goodlettsville

	  	
Tennessee

	  	
37072

	  	
3,452

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
240

	  	
Cary Town Center

	  	
E4428

	  	
Raleigh

	  	
North Carolina

	  	
27511

	  	
2,567

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
242

	  	
Grand Central Mall

	  	
273

	  	
Vienna

	  	
West Virginia

	  	
26105

	  	
2,712

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
243

	  	
Mall at Johnson City

	  	
17

	  	
Johnson City

	  	
Tennessee

	  	
37601

	  	
3,055

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
244

	  	
Maplewood Mall

	  	
2012

	  	
Maplewood

	  	
Minnesota

	  	
55109

	  	
2,974

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
245

	  	
Chesterfield Mall

	  	
BL220

	  	
Chesterfield

	  	
Missouri

	  	
63017

	  	
3,208

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
246

	  	
Chapel Hill Mall

	  	
339

	  	
Akron

	  	
Ohio

	  	
44310

	  	
3,418

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
247

	  	
Fashion Square Mall

	  	
C312

	  	
Saginaw

	  	
Michigan

	  	
48604

	  	
3,009

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
248

	  	
Wilton Mall

	  	
E18

	  	
Saratoga Springs

	  	
New York

	  	
12866

	  	
2,467

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
249

	  	
Asheville Mall

	  	
L42

	  	
Asheville

	  	
North Carolina

	  	
28805

	  	
3,363

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
250

	  	
Burnsville Center

	  	
1044

	  	
Burnsville

	  	
Minnesota

	  	
55306

	  	
2,676

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
251

	  	
Eastland Mall

	  	
64

	  	
Evansville

	  	
Indiana

	  	
47715

	  	
3,310

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
252

	  	
Opry Mills

	  	
476

	  	
Nashville

	  	
Tennessee

	  	
37214

	  	
3,590

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
253

	  	
Crestwood Mall

	  	
436

	  	
St Louis

	  	
Missouri

	  	
63126

	  	
2,570

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
254

	  	
Mid Rivers

	  	
1252

	  	
St Peters

	  	
Missouri

	  	
63376

	  	
3,133

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
255

	  	
Charlestown Mall

	  	
C214

	  	
St Charles

	  	
Illinois

	  	
60174

	  	
3,016

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
256

	  	
Independence Mall

	  	
D114

	  	
Kingston

	  	
Massachusetts

	  	
2364

	  	
3,081

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
257

	  	
Circle Centre Mall

	  	
F16

	  	
Indianapolis

	  	
Indiana

	  	
46225

	  	
3,632

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
258

	  	
Tysons Corner Center

	  	
G5U

	  	
McLean

	  	
Virginia

	  	
22102

	  	
3,578

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
259

	  	
Arundel Mills

	  	
211

	  	
Hanover

	  	
Maryland

	  	
21076

	  	
3,088

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
260

	  	
Arnot Mall

	  	
N9

	  	
Horsehead

	  	
New York

	  	
14844

	  	
3,000

	  	
Arnot Realty

	  	
3300 Chambers Road South

	  	  	  	
Horsehead

	  	
NY

	  	
14845

	
261

	  	
Morgantown

	  	
613

	  	
Morgantown

	  	
West Virginia

	  	
26501

	  	
2,870

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
262

	  	
Arbor Place

	  	
1180

	  	
Douglassville

	  	
Georgia

	  	
30315

	  	
3,237

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
263

	  	
Governor's Square

	  	
2170

	  	
Tallahassee

	  	
Florida

	  	
32301

	  	
3,024

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
264

	  	
Colonial Mall at Macon

	  	
18

	  	
Macon

	  	
Georgia

	  	
31206

	  	
3,120

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
265

	  	
Miller Hill

	  	
J08

	  	
Duluth

	  	
Minnesota

	  	
55811

	  	
2,842

	  	
Simon Property Group

	  	
225 W Washington Street .

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
266

	  	
Merle Hay Mall

	  	
912

	  	
Des Moines

	  	
Iowa

	  	
50310

	  	
3,456

	  	
The Mills Corp

	  	
3850 Merle Hay Road

	  	
Suite 101

	  	
Des Moines

	  	
IA

	  	
50310

	
268

	  	
Oak Court

	  	
1130

	  	
Memphis

	  	
Tennessee

	  	
38117

	  	
4,000

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
269

	  	
Four Seasons Mall

	  	
209

	  	
Greensboro

	  	
North Carolina

	  	
27407

	  	
3,585

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
271

	  	
Harford Mall

	  	
W4

	  	
Belair

	  	
Maryland

	  	
21014

	  	
3,243

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
272

	  	
University Mall

	  	
112

	  	
Tuscaloosa

	  	
Alabama

	  	
35405

	  	
3,539

	  	
Aronov Realty Management

	  	
3500 Eastern Blvd

	  	  	  	
Montgomery

	  	
AL

	  	
36116

	
273

	  	
Meadowbrook Mall

	  	
640

	  	
Bridgeport

	  	
West Virginia

	  	
26330

	  	
3,325

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
274

	  	
Sandusky Mall

	  	
327

	  	
Sandusky

	  	
Ohio

	  	
44870

	  	
3,457

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
275

	  	
Eastland Mall

	  	
1055

	  	
Bloomington

	  	
Illinois

	  	
61701

	  	
4,211

	  	
Copaken White Blitt

	  	
1100 Walnut

	  	
Suite 2000

	  	
Kansas City

	  	
MO

	  	
64106

	
277

	  	
Brass Mill

	  	
1128

	  	
Waterbury

	  	
Connecticut

	  	
6706

	  	
3,759

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
278

	  	
White Marsh

	  	
2035

	  	
Baltimore

	  	
Maryland

	  	
21236

	  	
3,265

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
280

	  	
Concord Mills

	  	
699

	  	
Concord

	  	
North Carolina

	  	
28027

	  	
3,051

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
281

	  	
Kennedy Mall

	  	
566

	  	
Dubuque

	  	
Iowa

	  	
52002

	  	
3,745

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
282

	  	
Augusta Mall

	  	
1131

	  	
Augusta

	  	
Georgia

	  	
30909

	  	
3,242

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
283

	  	
Independence Mall

	  	
1093

	  	
Wilmington

	  	
North Carolina

	  	
28403

	  	
3,216

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
284

	  	
Colonial Myrtle Beach

	  	
D9

	  	
Myrtle Beach

	  	
South Carolina

	  	
29572

	  	
3,438

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
285

	  	
Colonial Mall Greenville

	  	
D4

	  	
Greenville

	  	
North Carolina

	  	
27858

	  	
2,895

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
286

	  	
Richland Mall

	  	
A7

	  	
Mansfield

	  	
Ohio

	  	
44906

	  	
3,500

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
287

	  	
North Dartmouth Mall

	  	
1360

	  	
North Dartmouth

	  	
Massachusetts

	  	
2747

	  	
3,300

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
288

	  	
Eastland Mall

	  	
B8

	  	
Columbus

	  	
Ohio

	  	
43232

	  	
4,560

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
289

	  	
Woodland Mall

	  	
1A

	  	
Grand Rapids

	  	
Michigan

	  	
49512

	  	
3,615

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
290

	  	
Valley Hills Mall

	  	
230

	  	
Hickory

	  	
North Carolina

	  	
28602

	  	
3,699

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
291

	  	
Riverchase Galleria

	  	
V2

	  	
Birmingham

	  	
Alabama

	  	
35244

	  	
3,089

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
292

	  	
Westroads

	  	  	  	
Omaha

	  	
Nebraska

	  	
68114

	  	
4,022

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
293

	  	
Tanger Factory Outlet Center-NY

	  	
304

	  	
Riverhead

	  	
New York

	  	
11901

	  	
3,860

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
294

	  	
Springfield Mall

	  	
10BU

	  	
Springfield

	  	
Pennsylvania

	  	
19064

	  	
3,071

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
297

	  	
Macomb Mall

	  	
240/250

	  	
Roseville

	  	
Michigan

	  	
48066

	  	
3,000

	  	
Macomb Association

	  	
25 W 39th Street

	  	  	  	
New York

	  	
NY

	  	
10018

	
299

	  	
Mall of Louisiana

	  	
2186

	  	
Baton Rouge

	  	
Louisiana

	  	
70836

	  	
3,369

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
300

	  	
River Hills Mall

	  	
308

	  	
Mankato

	  	
Minnesota

	  	
56001

	  	
3,044

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
301

	  	
Colonial Mall Bel Aire

	  	
C19

	  	
Mobile

	  	
Alabama

	  	
36606

	  	
2,846

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
303

	  	
Northtown Mall

	  	
H19

	  	
Blaine

	  	
Minnesota

	  	
55434

	  	
3,600

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
304

	  	
Bangor Mall

	  	
E6

	  	
Bangor

	  	
Maine

	  	
4401

	  	
3,514

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
305

	  	
Oakdale

	  	
Suite 76

	  	
Johnson City

	  	
New York

	  	
13790

	  	
2,827

	  	
Vomado

	  	
210 Route 4 East

	  	  	  	
Paramus

	  	
NJ

	  	
7652

	
306

	  	
Independence Center

	  	
G07

	  	
Independence

	  	
Missouri

	  	
64057

	  	
3,800

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
307

	  	
Polaris

	  	
2094

	  	
Columbus

	  	
Ohio

	  	
43240

	  	
3,243

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
308

	  	
South County Mall

	  	
51

	  	
St Louis

	  	
Missouri

	  	
63129

	  	
3,861

	  	
Westfieid

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
309

	  	
Midway Mall

	  	
F36

	  	
Elyria

	  	
Ohio

	  	
44035

	  	
3,036

	  	
Westfieid

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
310

	  	
Valley View Mall

	  	
LB40

	  	
Roanoke

	  	
Virginia

	  	
24012

	  	
2,920

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
311

	  	
West Ridge Mall

	  	
G13A

	  	
Topeka

	  	
Kansas

	  	
66604

	  	
3,093

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
312

	  	
McKinley Mall

	  	
807

	  	
Buffalo

	  	
New York

	  	
14219

	  	
3,372

	  	
Zamias

	  	
300 Market Street

	  	  	  	
Johnstown

	  	
PA

	  	
15901

	
313

	  	
Maine Mall

	  	
W11

	  	
Portland

	  	
Maine

	  	
4106

	  	
3,370

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
314

	  	
CherryVale Mall

	  	
F129

	  	
Rockford

	  	
Illinois

	  	
61112

	  	
3,438

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
315

	  	
St Clair Square

	  	
105

	  	
Fairview Heights

	  	
Illinois

	  	
62208

	  	
4,041

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
316

	  	
Cross Creek Mall

	  	
TB7

	  	
Fayetteville

	  	
North Carolina

	  	
28303

	  	
3,858

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
317

	  	
Charleston Town Center

	  	
2105

	  	
Charleston

	  	
West Virginia

	  	
25389

	  	
2,849

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
318

	  	
Mayfair Mall

	  	
865

	  	
Wauwatosa

	  	
Wisconsin

	  	
53226

	  	
3,023

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
319

	  	
White Oaks Mall

	  	
C10

	  	
Springfield

	  	
Illinois

	  	
62704

	  	
3,623

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
330

	  	
Park Plaza Mall

	  	  	  	
Little Rock

	  	
Arkansas

	  	
72205

	  	
2,910

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
331

	  	
The Hanover Mall

	  	
113

	  	
Hanover

	  	
Massachusetts

	  	
2339

	  	
3,000

	  	
Weiner

	  	
1775 Washinton Street

	  	  	  	
Hanover

	  	
MA

	  	
2339

	
332

	  	
Chicago Ridge

	  	  	  	
Chicago

	  	
Illinois

	  	
60415

	  	
3,509

	  	
Shopco Advisory Corp.

	  	
1250 Braodway

	  	  	  	
New York

	  	
NY

	  	
10001

 

  

  

  

 

 

 

	
333

	  	
Washington Square

	  	
166

	  	
Indianapolis

	  	
Indiana

	  	
46229

	  	
3,016

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
334

	  	
Ashland Town Center

	  	
468

	  	
Ashland

	  	
Kentucky

	  	
41101

	  	
3,354

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
335

	  	
River Valley Mall

	  	  	  	
Lancaster

	  	
Ohio

	  	
43130

	  	
3,200

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
336

	  	
Logan Valley Mall

	  	
944

	  	
Altoona

	  	
Pennsylvania

	  	
16602

	  	
3,227

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
337

	  	
Capital City Mall

	  	  	  	
Camp Hill

	  	
Pennsylvania

	  	
17011-7003

	  	
3,603

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
338

	  	
Jefferson Pointe Mall

	  	
H10

	  	
Fort Wayne

	  	
Indiana

	  	
46804

	  	
3,401

	  	
Red Development

	  	
4717 Central Avenue

	  	  	  	
Kansas City

	  	
MS

	  	
64112

	
339

	  	
The Mall at Whitney Field

	  	
Formerly Searstown Mall Leominster

	  	  	  	
Massachusetts

	  	
46804

	  	
3,548

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
340

	  	
Oakwood Mall

	  	
322

	  	
Eau Claire

	  	
Wisconsin

	  	
54701

	  	
3,786

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
341

	  	
The Lakes Mall

	  	
1076

	  	
Muskegon

	  	
Michigan

	  	
49444

	  	
2,928

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
342

	  	
York Galleria

	  	
166

	  	
York

	  	
Pennsylvania

	  	
17402

	  	
3,055

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
343

	  	
River Ridge Mall

	  	
B90

	  	
Lynchburgh

	  	
Virginia

	  	
24502

	  	
3,200

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
344

	  	
Berkshire Mall

	  	
B104

	  	
Lanesboro

	  	
Massachusetts

	  	
1237

	  	
3,500

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
346

	  	
Robinson Town Center

	  	  	  	
Robinson Township

	  	
Pennsylvania

	  	  	  	
3,266

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
347

	  	
Stroud Mall

	  	  	  	
Stroudsburgh

	  	
Pennsylvania

	  	
18360

	  	
2,750

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
348

	  	
Connecticut Post

	  	
2041

	  	
Milford

	  	
Connecticut

	  	
6460

	  	
2,890

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
349

	  	
Berkshire Mall

	  	
G7

	  	
Wyomissing

	  	
Pennsylvania

	  	
19610

	  	
3,625

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
350

	  	
South Pointe

	  	
D5

	  	
Lincoln

	  	
Nebraska

	  	
68516

	  	
2,800

	  	
Red Development

	  	
4717 Central Avenue

	  	  	  	
Kansas City

	  	
MS

	  	
64112

	
351

	  	
The Plaza at King of Prussia

	  	  	  	
King of Prussia

	  	
Pennsylvania

	  	
19406

	  	
3,223

	  	
Kravco

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
353

	  	
Northpark Mall

	  	
36

	  	
Davenport

	  	
Iowa

	  	
52806

	  	
3,415

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
354

	  	
Southpark Mall

	  	
175

	  	
Moline

	  	
Illinois

	  	
61265

	  	
3,103

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
355

	  	
Eastgate Mall

	  	
344

	  	
Cincinnati

	  	
Ohio

	  	
45245

	  	
3,964

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
356

	  	
Southpark

	  	
F40

	  	
Colonial Heights

	  	
Virginia

	  	
23834

	  	
3,150

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
357

	  	
Clearview Mall

	  	
BL06

	  	
Butler

	  	
Pennsylvania

	  	
16001

	  	
2,997

	  	
JJ Gumberg

	  	
1051 Brinlon Road

	  	  	  	
Pittsburgh

	  	
PA

	  	
15221

	
358

	  	
Gateway Mall

	  	  	  	
Lincoln

	  	
Nebraska

	  	  	  	
3,728

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
359

	  	
Burlington Town Center

	  	  	  	
Burlington

	  	
Vermont

	  	  	  	
3,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
360

	  	
Nittany Mall

	  	  	  	
State College

	  	
Pennsylvania

	  	
16801

	  	
3,333

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
361

	  	
Spring Hill

	  	
Lease ID # 405001 0003

	  	
iWest Dundee

	  	
Illinois

	  	
60118

	  	
3,402

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
362

	  	
Solomon Pond

	  	
N219

	  	
Marlborough

	  	
Massachusetts

	  	
1752

	  	
3,208

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
363

	  	
Mall of Georgia

	  	
2025

	  	
Buford

	  	
Georgia

	  	
30519

	  	
3,713

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
364

	  	
Northwoods Mall

	  	  	  	
Peoria

	  	
Illinois

	  	
61613

	  	
4,281

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
365

	  	
Findlay Village

	  	
#153

	  	
Findlay

	  	
Ohio

	  	
45839

	  	
3,600

	  	
JJ Gumberg

	  	
1051 Brinton Road

	  	  	  	
Pittsburgh

	  	
PA

	  	
15221

	
366

	  	
Wausau Center

	  	  	  	
Wausau

	  	
Wisconsin

	  	  	  	
3,600

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
367

	  	
Birchwood Mall

	  	  	  	
Port Huron

	  	
Michigan

	  	  	  	
3,199

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
368

	  	
Susquehanna Valley

	  	  	  	
Selinsgrove

	  	
Pennsylvania

	  	
17870

	  	
3,090

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
369

	  	
Eden Prairie Center

	  	  	  	
Eden Prairie

	  	
Minnesota

	  	
55344

	  	
3,530

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
370

	  	
Steeplegate Mall

	  	  	  	
Concord

	  	
New Hampshire

	  	
3301

	  	
3,158

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
371

	  	
Salmon Run Mall

	  	
NYS Rte 3

	  	
Watertown

	  	
New York

	  	  	  	
2,958

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
372

	  	
Champlain Center North

	  	
C119

	  	
Pittsburgh

	  	
New York

	  	  	  	
3,366

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
373

	  	
Florence Mall

	  	  	  	
Florence

	  	
Kentucky

	  	  	  	
3,828

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
374

	  	
North Grand Mall

	  	  	  	
Ames

	  	
Iowa

	  	
50010

	  	
3,707

	  	
Landau & Heyman

	  	
303 E Main Street

	  	
Suite 201

	  	
Barrington

	  	
IL

	  	
60010

	
375

	  	
Palmer Park Mall

	  	
Palmer Township

	  	
Easton

	  	
Pennsylvania

	  	
18042

	  	
2,971

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
376

	  	
Manhattan Town Center

	  	  	  	
Manhattan

	  	
Kansas

	  	  	  	
3,500

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
377

	  	
Jefferson Mall

	  	  	  	
Louisville

	  	
Kentucky

	  	  	  	
2,521

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
378

	  	
University Mall

	  	  	  	
South Burlington

	  	
Vermont

	  	  	  	
3,000

	  	
Finard & Company

	  	
One Burlington Woods Dr

	  	  	  	
Burlington

	  	
MA

	  	
01803

	
379

	  	
Rockingham Park Mall

	  	  	  	
Salem

	  	
New Hampshire

	  	
3079

	  	
3,419

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
380

	  	
Brookfield Square

	  	  	  	
Brookfield

	  	
Wisconsin

	  	
53005-6084

	  	
3,968

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
381

	  	
Johnstown Galleria

	  	  	  	
Johnstown

	  	
Pennsylvania

	  	
15901

	  	
3,250

	  	
Zamias

	  	
300 Market Street

	  	  	  	
Johnstown

	  	
PA

	  	
15901

	
382

	  	
Madison Square Mall

	  	  	  	
Huntsville

	  	
Alabama

	  	
35806

	  	
3,060

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
383

	  	
Rotterdam Square

	  	  	  	
Schenectady

	  	
New York

	  	
12306

	  	
2,930

	  	
Wilmorite

	  	
1265 Scottsville Road

	  	  	  	
Rochester

	  	
NY

	  	
14624

	
384

	  	
Kenwood Town Center

	  	  	  	
Cincinnati

	  	
Ohio

	  	
45236

	  	
3,650

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
385

	  	
Kentucky Oaks Mall

	  	  	  	
Paducah

	  	
Kentucky

	  	
42001

	  	
3,651

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
386

	  	
Upper Valley Mall

	  	  	  	
Springfield

	  	
Ohio

	  	
45504

	  	
3,024

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
387

	  	
Apple Blossom Mall

	  	  	  	
Winchester

	  	
Virginia

	  	
22601

	  	
3,252

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
388

	  	
College Square - IA

	  	  	  	
Cedar Falls

	  	
Iowa

	  	
50613

	  	
3,514

	  	
Landau & Heyman of Iowa, Inc.

	  	
249 W 17th Street

	  	  	  	
New York

	  	
NY

	  	
10011

	
389

	  	
Wolfchase Galleria

	  	  	  	
Memphis

	  	
Tennessee

	  	
38133

	  	
3,450

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
390

	  	
Magnolia Mall

	  	  	  	
Florence

	  	
South Carolina

	  	
29501

	  	
3,002

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
391

	  	
Phillipsburg Mall

	  	  	  	
Phillipsburg

	  	
New Jersey

	  	
08865-4105

	  	
3,696

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
392

	  	
West Towne Mall

	  	  	  	
Madison

	  	
Wisconsin

	  	
53719-1069

	  	
3,050

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
393

	  	
Regency Mall

	  	  	  	
Racine

	  	
Wisconsin

	  	
53406-5052

	  	
3,450

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
394

	  	
Northgate Mall

	  	  	  	
Cincinnati

	  	
Ohio

	  	
45251

	  	
3,300

	  	
David Hocker

	  	
1901 Frederica Street

	  	  	  	
Owensboro

	  	
KY

	  	
42301

	
395

	  	
Brunswick Square

	  	  	  	
East Brunswick

	  	
New Jersey

	  	
8816

	  	
3,790

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
396

	  	
Easton Town Center

	  	  	  	
Columbus

	  	
Ohio

	  	
43219

	  	
3,673

	  	
Steiner and Associates, Inc.

	  	
4200 Regent Street

	  	
Suite 210

	  	
Columbus

	  	
OH

	  	
43219

	
397

	  	
Indian Mound Mall

	  	  	  	
Heath

	  	
Ohio

	  	
43056

	  	
3,953

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
398

	  	
Towne East Square

	  	  	  	
Wichita

	  	
Kansas

	  	
67207

	  	
3,100

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
399

	  	
Sikes Senter Mall

	  	  	  	
Wichita Falls

	  	
Texas

	  	
76308

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
440

	  	
Coral Ridge Mall

	  	  	  	
Coralville

	  	
Iowa

	  	
52241

	  	
3,401

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
441

	  	
Georgia Square Mall

	  	
Suite 212

	  	
Athens

	  	
Georgia

	  	
30606-3155

	  	
3,150

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
442

	  	
Mall of Abilene

	  	  	  	
Abilene

	  	
Texas

	  	
79606

	  	
3,339

	  	
Landau & Heyman

	  	
124 Johnson Ferry Rd

	  	  	  	
Atlanta

	  	
GA

	  	
30328

	
443

	  	
Great Mall of the Great Plains

	  	  	  	
Olathe

	  	
Kansas

	  	
66061

	  	
4,284

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
444

	  	
Central Mall

	  	  	  	
Fort Smith

	  	
Arkansas

	  	
72903

	  	
2,920

	  	
Warmack and Company, LLC

	  	
Central Mall

	  	  	  	
Fort Smith

	  	
AR

	  	
72903

	
445

	  	
Santa Rosa Mall

	  	
Suite 60

	  	
Mary Esther

	  	
Florida

	  	
32569

	  	
3,054

	  	
Jim Wilson

	  	
3500 Piedmont Road NE

	  	
Suite 600

	  	
Atlanta

	  	
GA

	  	
30305

	
446

	  	
Westwood Mall

	  	  	  	
Jackson

	  	
Michigan

	  	
49201

	  	
4,214

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
447

	  	
Eastwood Town Center

	  	  	  	
Lansing

	  	
Michigan

	  	
48912

	  	
3,600

	  	
Jeffery R. Anderson Realty

	  	
3805 Edwards Road

	  	
Suite 700

	  	
Cincinnati

	  	
OH

	  	
45209

	
448

	  	
Penn Square Mall

	  	  	  	
Oklahoma City

	  	
Oklahoma

	  	
73116

	  	
3,152

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
449

	  	
Louis Joliet Mall

	  	  	  	
Joliet

	  	
Illinois

	  	
60431

	  	
4,281

	  	
The Mills Corp

	  	
3340 Mall Loop

	  	  	  	
Joliet

	  	
IL

	  	
60431

	
450

	  	
Crossroads Center

	  	  	  	
St. Cloud

	  	
Minnesota

	  	
56301

	  	
4,021

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
451

	  	
University Mall

	  	  	  	
Carbondale

	  	
Illinois

	  	
62902

	  	
3,600

	  	
Landau & Heyman

	  	
120 South Riverside Plaza

	  	
Suite 1605

	  	
Chicago

	  	
IL

	  	
60606

	
452

	  	
West Valley Mall

	  	  	  	
Tracy

	  	
California

	  	
95304

	  	
3,498

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
453

	  	
Cape Cod Mall

	  	  	  	
Hyannis

	  	
Massachusetts

	  	
2601

	  	
3,862

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
454

	  	
Grand Traverse Mall

	  	  	  	
Traverse City

	  	
Michigan

	  	
49684

	  	
3,040

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

 

 

 

  

  

  

 

 

	
455

	  	
Enfield

	  	  	  	
Enfield

	  	
Connecticut

	  	
6082

	  	
3,300

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
456

	  	
Lakeland Square Mall

	  	
RM 304

	  	
Lakeland

	  	
Florida

	  	
33809

	  	
3,200

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
457

	  	
Colony Square

	  	  	  	
Zanesvllle

	  	
Ohio

	  	
43701

	  	
2,659

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
458

	  	
Westshore Mall

	  	  	  	
Holland

	  	
Michigan

	  	
49424

	  	
3,053

	  	
Wilmorite

	  	
1265 Scottsville Road

	  	  	  	
Rochester

	  	
NY

	  	
14624

	
459

	  	
Towne Mall

	  	  	  	
Elizabethtown

	  	
Kentucky

	  	
42701

	  	
3,000

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
460

	  	
Janesville Mall

	  	  	  	
Janesville

	  	
Wisconsin

	  	
53545

	  	
3,418

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
461

	  	
West Park Mall

	  	
Suite 134

	  	
Cape Girardeau

	  	
Missouri

	  	
63703

	  	
3,811

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
462

	  	
Viewmont Mall

	  	  	  	
Scranton

	  	
Pennsylvania

	  	
18508-1305

	  	
3,300

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
463

	  	
Swansea Mall

	  	  	  	
Swansea

	  	
Massachusetts

	  	
2777

	  	
3,028

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
464

	  	
Bay City Mall

	  	  	  	
Bay City

	  	
Michigan

	  	
48706

	  	
3,410

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
465

	  	
Lansing Mall

	  	  	  	
Lansing

	  	
Michigan

	  	
48917

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
466

	  	
Lakeview Square Mall

	  	  	  	
Battle Creek

	  	
Michigan

	  	
49015

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
467

	  	
Governor's Square Mall

	  	  	  	
Clarksville

	  	
Tennessee

	  	
37042

	  	
3,720

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
468

	  	
Eastfield Mall

	  	  	  	
Springfield

	  	
Massachusetts

	  	
1129

	  	
3,470

	  	
Mountain Development Corp.

	  	
100 Delawanna Avenue

	  	
Suite 100

	  	
Clifton

	  	
NJ

	  	
7014

	
469

	  	
Northpark Mall

	  	
101 Rangeline Road

	  	
Joplin

	  	
Missouri

	  	
64801

	  	
3,167

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
470

	  	
Northgate Mall (TN)

	  	  	  	
Chattanooga

	  	
Tennessee

	  	
37415

	  	
3,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
471

	  	
Hulen Mall

	  	  	  	
Fort Worth

	  	
Texas

	  	
76132

	  	
2,909

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
472

	  	
Ridgemar Mall

	  	  	  	
Fort Worth

	  	
Texas

	  	
76116

	  	
2,982

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
473

	  	
Arsenal Mall

	  	  	  	
Watertown

	  	
Massachusetts

	  	
2472

	  	
3,809

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
474

	  	
Apache Mall

	  	  	  	
Rochester

	  	
Minnesota

	  	
55902

	  	
3,041

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
475

	  	
Anderson Mall

	  	  	  	
Anderson

	  	
South Carolina

	  	
29621

	  	
3,848

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
476

	  	
South Shore Plaza

	  	  	  	
Braintree

	  	
Massachusetts

	  	
2184

	  	
3,190

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
477

	  	
Northgate Mall (NC)

	  	  	  	
Raleigh

	  	
North Carolina

	  	
27701

	  	
2,747

	  	
Northgate Associates

	  	
P.O. Box 2476

	  	  	  	
Durham

	  	
NC

	  	
27715

	
478

	  	
Yorktown Mall

	  	  	  	
Lombard

	  	
Illinois

	  	
60148

	  	
2,835

	  	
Pehrson Long Associates

	  	
203 Yorktown Center

	  	  	  	
Lombard

	  	
IL

	  	
60148

	
479

	  	
Pecanland Mall

	  	  	  	
Monroe

	  	
Louisiana

	  	
71203

	  	
3,654

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
481

	  	
Park Place Mall

	  	  	  	
Tucson

	  	
Arizona

	  	
85711

	  	
3,174

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
482

	  	
Neshaminy Mall

	  	  	  	
Bensalem

	  	
Pennsylvania

	  	
19020

	  	
3,175

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
483

	  	
Triangle Town Center

	  	  	  	
Raleigh

	  	
North Carolina

	  	
27616

	  	
3,541

	  	
Jacobs Group

	  	
25425 Center Ridge Road

	  	  	  	
Cleveland

	  	
OH

	  	
44145

	
484

	  	
The Oaks Mall

	  	  	  	
Gainsville

	  	
Florida

	  	
32605

	  	
3,349

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
485

	  	
Collin Creek Mall

	  	  	  	
Piano

	  	
Texas

	  	
75075

	  	
3,531

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
486

	  	
Colonial Mall at Auburn

	  	  	  	
Auburn

	  	
Alabama

	  	
36830

	  	
3,538

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
487

	  	
Carolina Place Mall

	  	  	  	
Pineville

	  	
North Carolina

	  	
28134

	  	
2,997

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
488

	  	
The Parks at Arlington

	  	
#2206

	  	
Arlington

	  	
Texas

	  	
76015-4194

	  	
3,330

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
489

	  	
Towne Square Mall

	  	  	  	
Owensboro

	  	
Kentucky

	  	
42301

	  	
3,674

	  	
Aronov Realty Management

	  	
3500 Eastern Blvd

	  	  	  	
Montgomery

	  	
AL

	  	
36116

	
490

	  	
Prime Outlets of Grove City

	  	  	  	
Grove City

	  	
Pennsylvania

	  	
16127

	  	
4,749

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
491

	  	
Prime Outlets of Hagerstown

	  	  	  	
Hagerstown

	  	
Maryland

	  	
21740

	  	
5,063

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
492

	  	
San Marcos Outlet Stores

	  	
Suite 450

	  	
San Marcos

	  	
Texas

	  	
78666-5957

	  	
5,764

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
493

	  	
Rehoboth Outlets

	  	  	  	
Rehoboth Beach

	  	
Delaware

	  	
19971

	  	
5,000

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
494

	  	
Valley Mall

	  	
Attention: Mall Management

	  	
Harrisonburg

	  	
Virginia

	  	
22801

	  	
3,200

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
506

	  	
Shenango Valley Mall

	  	  	  	
Hermitage

	  	
Pennsylvania

	  	
16148

	  	
3,600

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
507

	  	
Greenwood Mall

	  	  	  	
Bowling Green

	  	
Kentucky

	  	
42104

	  	
3,584

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
508

	  	
Myrtle Beach Outlet

	  	  	  	
Myrtle Beach

	  	
South Carolina

	  	
29579

	  	
5,040

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
509

	  	
Pleasant Prairie Outlets

	  	  	  	
Kenosha

	  	
Wisconsin

	  	
53158

	  	
3,600

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
510

	  	
Jeffersonville

	  	  	  	
Jeffersonville

	  	
Ohio

	  	
43128

	  	
4,976

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
511

	  	
Prime Outlets Brich Run

	  	  	  	
Birch Run

	  	
Michigan

	  	
48415

	  	
6,000

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
512

	  	
Prime Outlets Niagara

	  	  	  	
Niagara Falls

	  	
New York

	  	
14304

	  	
3,874

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
515

	  	
Waterloo Outlets

	  	  	  	
Waterloo

	  	
New York

	  	
13165

	  	
6,000

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
516

	  	
Huntley Outlets

	  	  	  	
Huntley

	  	
Illinois

	  	
60149

	  	
5,104

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
517

	  	
New River Valley Mall

	  	  	  	
Christiansburg

	  	
Virginia

	  	
24073-6506

	  	
3,542

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
518

	  	
Crossroads Mall

	  	  	  	
Portage

	  	
Michigan

	  	
49024

	  	
3,271

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
519

	  	
Wyoming Valley Mall

	  	  	  	
Wilkes Barre

	  	
Pennsylvania

	  	
18702

	  	
3,385

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
520

	  	
Virginia Center Commons

	  	  	  	
Glen Allen

	  	
Virginia

	  	
23059

	  	
2,809

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
521

	  	
Geneva Center Commons

	  	  	  	
Geneva

	  	
Illinois

	  	
60134

	  	
3,600

	  	
Jeffery R. Anderson Realty

	  	
3805 Edwards Road

	  	
Suite 700

	  	
Cincinnati

	  	
OH

	  	
45209

	
522

	  	
Southridge Mall

	  	  	  	
Greendale

	  	
Wisconsin

	  	
53129

	  	
4,500

	  	
The Mills Corp

	  	
5425 Wisconsin Avenue

	  	
Suite 500

	  	
Chevey Chase

	  	
MD

	  	
20815

	
523

	  	
Tulsa Promenade

	  	  	  	
Tulsa

	  	
Oklahoma

	  	
74135

	  	
3,682

	  	
Coyote Management LP

	  	
16475 Dallas Parkway

	  	
Suite 250

	  	
Addison

	  	
TX

	  	
75001

	
524

	  	
Esplanade Mall

	  	  	  	
Kenner

	  	
Louisiana

	  	
70065

	  	
3,274

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
525

	  	
Kirkwood Mall

	  	  	  	
Bismark

	  	
North Dakota

	  	
58504

	  	
4,284

	  	
The Mills Corp

	  	
7th Street and Bismark Exp

	  	  	  	
Bismark

	  	
ND

	  	
58504

	
526

	  	
Grapevine Mills Mall

	  	  	  	
Grapevine

	  	
Texas

	  	
76051

	  	
2,803

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
527

	  	
Golden East Crossing

	  	  	  	
Rocky Mount

	  	
North Carolina

	  	
27804

	  	
2,606

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
528

	  	
Sarasota Square

	  	  	  	
Sarasota

	  	
Florida

	  	
34238

	  	
3,389

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
529

	  	
Green Tree Mall

	  	  	  	
Clarksville

	  	
Indiana

	  	
47129

	  	
3,000

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
530

	  	
Columbia Mall (MO)

	  	  	  	
Columbia

	  	
Missouri

	  	
65203

	  	
3,003

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
531

	  	
Quintard Mall

	  	  	  	
Oxford

	  	
Alabama

	  	
36203

	  	
3,515

	  	
Grimmer Realty Company

	  	
200 Green Springs Highway

	  	  	  	
Birmingham

	  	
AL

	  	
35209

	
532

	  	
Huntington Mall

	  	  	  	
Barboursville

	  	
West Virginia

	  	
25504

	  	
3,566

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
533

	  	
Northtown Mall

	  	  	  	
Spokane

	  	
Washington

	  	
99207

	  	
3,067

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
534

	  	
Southwest Plaza

	  	  	  	
Littleton

	  	
Colorado

	  	
80123

	  	
3,828

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
535

	  	
Bellis Fair Mall

	  	  	  	
Bellingham

	  	
Washington

	  	
98226

	  	
3,426

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
536

	  	
Patrick Henry Mall

	  	  	  	
New Port News

	  	
Virginia

	  	
23602

	  	
3,434

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
537

	  	
The Citadel Mall

	  	  	  	
Colorado Springs

	  	
Colorado

	  	
80909

	  	
3,848

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
538

	  	
North East Mall

	  	  	  	
Hurst

	  	
Texas

	  	
76053

	  	
3,199

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
539

	  	
Alderwood Mall

	  	  	  	
Lynnwood

	  	
Washington

	  	
98037

	  	
3,132

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
540

	  	
Kitsap Mall

	  	  	  	
Silverdale

	  	
Washington

	  	
98383

	  	
3,500

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
541

	  	
South Hill Mall

	  	  	  	
Puyallup

	  	
Washington

	  	
98373

	  	
3,382

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
542

	  	
Arbor Lakes Mall

	  	  	  	
Maple Grove

	  	
Minnesota

	  	
55369

	  	
3,620

	  	
Red Development

	  	
4717 Central Avenue

	  	  	  	
Kansas City

	  	
MS

	  	
64112

	
543

	  	
Vancouver Mall

	  	  	  	
Vancouver

	  	
Washington

	  	
98662

	  	
3,210

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
544

	  	
Bay Park Square

	  	  	  	
Green Bay

	  	
Wisconsin

	  	
54304

	  	
3,527

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
545

	  	
Country Side Mall

	  	  	  	
Clearwater

	  	
Florida

	  	
33761

	  	
3,349

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
546

	  	
Fox River Mall

	  	  	  	
Appleton

	  	
Wisconsin

	  	
54913

	  	
4,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
547

	  	
Columbia Mall

	  	  	  	
Grand Forks

	  	
North Dakota

	  	
58201

	  	
3,309

	  	
The Mills Corp

	  	
257 E Main Street

	  	  	  	
Barrington

	  	
IL

	  	
60010

	
548

	  	
Lima Mall

	  	  	  	
Lima

	  	
Ohio

	  	
45805

	  	
4,000

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

 

 

  

  

  

 

 

 

	
549

	  	
Valley View Mall-WI

	  	  	  	
LaCrosse

	  	
Wisconsin

	  	
54601

	  	
3,422

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
550

	  	
Post Oak Mall

	  	  	  	
College Station

	  	
Texas

	  	
77840

	  	
3,785

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
551

	  	
Midland Mall

	  	
Pay rent for 3800 sqft, sp

	  	
Midland

	  	
Michigan

	  	
48642

	  	
3,800

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
552

	  	
Moorestown Mall

	  	  	  	
Moorestown

	  	
New Jersey

	  	
8057

	  	
3,000

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
553

	  	
Carolina Mall

	  	  	  	
Concord

	  	
North Carolina

	  	
28025

	  	
3,418

	  	
Hull Storey Retail Group

	  	
3632 Wheeler Road

	  	  	  	
Augusta

	  	
GA

	  	
30909

	
554

	  	
Valley West Mall

	  	  	  	
West DeMoines

	  	
Iowa

	  	
50266

	  	
3,880

	  	
Watson Centers

	  	
3100 W Lake Street

	  	
Suite 420

	  	
Minneapolis

	  	
MN

	  	
55416

	
555

	  	
Cordova Mall

	  	  	  	
Pensacola

	  	
Florida

	  	
32504

	  	
3,999

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
556

	  	
Mall of the Bluffs

	  	  	  	
Council Bluffs

	  	
Iowa

	  	
51503

	  	
3,571

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
557

	  	
Quail Springs

	  	  	  	
Oklahoma City

	  	
Oklahoma

	  	
73134

	  	
3,333

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
558

	  	
Towne West Square

	  	  	  	
Wichita

	  	
Kansas

	  	
67209

	  	
3,180

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
559

	  	
Eastdale Mall

	  	  	  	
Montgomery

	  	
Alabama

	  	
36117

	  	
3,395

	  	
Aronov Realty Management

	  	
3500 Eastern Blvd

	  	  	  	
Montgomery

	  	
AL

	  	
36116

	
560

	  	
North Point Mall

	  	  	  	
Alpharetta

	  	
Georgia

	  	
30022

	  	
3,596

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
561

	  	
Altamonte Mall

	  	  	  	
Altamonte Springs

	  	
Florida

	  	
32701

	  	
3,552

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
562

	  	
Foothills Mall

	  	  	  	
Fort Collins

	  	
Colorado

	  	
80525

	  	
3,188

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
563

	  	
Vista Ridge Mall

	  	  	  	
Lewisville

	  	
Texas

	  	
75067

	  	
2,762

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
564

	  	
Ridgedale Mall

	  	  	  	
Minnetonka

	  	
Minnesota

	  	
55305

	  	
3,481

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
565

	  	
North Star Mall

	  	  	  	
San Antonio

	  	
Texas

	  	
78216

	  	
4,620

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
566

	  	
Memorial City Mall

	  	  	  	
Houston

	  	
Texas

	  	
77027

	  	
3,458

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
567

	  	
Empire Mali

	  	  	  	
Sioux Falls

	  	
South Dakota

	  	
57106

	  	
3,409

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
568

	  	
Southern Hills Mall

	  	  	  	
Sioux City

	  	
Iowa

	  	
51106

	  	
3,561

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
569

	  	
Oglethorpe Mall

	  	  	  	
Savannah

	  	
Georgia

	  	
31406

	  	
3,580

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
570

	  	
Southlake Mall

	  	  	  	
Morrow

	  	
Georgia

	  	
30260

	  	
4,121

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
571

	  	
Millcreek Mall

	  	  	  	
Erie

	  	
Pennsylvania

	  	
16565

	  	
3,708

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
572

	  	
Vintage Faire Mall

	  	  	  	
Modesto

	  	
California

	  	
95356

	  	
3,776

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
573

	  	
Wiregrass Commons

	  	  	  	
Dothan

	  	
Alabama

	  	
36303

	  	
3,407

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
574

	  	
Westgate Mall

	  	  	  	
Spartanburg

	  	
South Carolina

	  	
29301

	  	
4,191

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
575

	  	
Deerbrook Mall

	  	  	  	
Humble

	  	
Texas

	  	
77338

	  	
3,090

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
576

	  	
Colonial Mall Valdosta

	  	  	  	
Valdosta

	  	
Georgia

	  	
31601

	  	
3,371

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
577

	  	
Parkway Place Mall

	  	  	  	
Huntsville

	  	
Alabama

	  	
35801

	  	
3,545

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
578

	  	
Francis Scott Key Mall

	  	  	  	
Frederick

	  	
Maryland

	  	
21703

	  	
4,089

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
579

	  	
Tanger Five Oaks

	  	  	  	
Sevierville

	  	
Tennessee

	  	
37862

	  	
3,550

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
580

	  	
Prime Outlets Ellenton

	  	  	  	
Ellenton

	  	
Florida

	  	
34222

	  	
4,118

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
581

	  	
Prime Outlets at Gaffney

	  	  	  	
Gaffney

	  	
South Carolina

	  	
29341

	  	
3,514

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
582

	  	
Tanger Outlet Center in Foley

	  	
see letter 12/22/03 for l

	  	
Foley

	  	
Alabama

	  	
36535

	  	
5,240

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
583

	  	
Gettysburg Outlet

	  	  	  	
Gettysburg

	  	
Pennsylvania

	  	
17325

	  	
3,600

	  	
Delancey Realty Services

	  	
718 Arch Street

	  	
Suite 400

	  	
Philadelphia

	  	
PA

	  	
19106

	
584

	  	
Woodland Hills Mall

	  	  	  	
Tulsa

	  	
Oklahoma

	  	
74133

	  	
3,531

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
585

	  	
Valley River Mall

	  	  	  	
Eugene

	  	
Oregon

	  	
97401

	  	
3,500

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
586

	  	
Dakota Square

	  	
Paying 7% of sales until $

	  	
Minot

	  	
North Dakota

	  	
58701

	  	
3,393

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
587

	  	
South Plains Mall

	  	  	  	
Lubbock

	  	
Texas

	  	
79414

	  	
3,590

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
588

	  	
Rivercenter Mall

	  	  	  	
San Antonio

	  	
Texas

	  	
78205

	  	
3,558

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
589

	  	
Lakeline Mall

	  	  	  	
Cedar Park

	  	
Texas

	  	
78613

	  	
2,986

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
590

	  	
Tuttle Crossing

	  	  	  	
Dublin

	  	
Ohio

	  	
43016

	  	
3,013

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
591

	  	
Lakeforest Mall

	  	  	  	
Gaithersburg

	  	
Maryland

	  	
20877

	  	
3,162

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
592

	  	
Clackamas Town Center

	  	  	  	
Portland

	  	
Oregon

	  	
97086

	  	
3,390

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
593

	  	
Fort Henry Mall

	  	  	  	
Kingsport

	  	
Tennessee

	  	
37664

	  	
2,880

	  	
Boardwalk Management Company, Inc.

	  	
31640 US Highway 19 N

	  	
Suite 1

	  	
Palm Harbor

	  	
FL

	  	
34684

	
594

	  	
Regency Square Mall

	  	  	  	
Florence

	  	
Alabama

	  	
35630

	  	
3,500

	  	
Hull Storey Retail Group

	  	
3632 Wheeler Road

	  	  	  	
Augusta

	  	
GA

	  	
30909

	
595

	  	
Eastridge Mall

	  	  	  	
Gastonia

	  	
North Carolina

	  	
28054

	  	
2,870

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
596

	  	
Acadiana Mall

	  	  	  	
Lafayette

	  	
Louisiana

	  	
70503

	  	
2,984

	  	
Lafayette Associates

	  	
2690 Crooks Rd

	  	
Suite 400

	  	
Troy

	  	
Ml

	  	
48084

	
597

	  	
Spotsylvania Mall

	  	
For calculation purposes

	  	
Fredericksburg

	  	
Virginia

	  	
22407

	  	
3,563

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
596

	  	
Rushmore Mall

	  	  	  	
Rapid City

	  	
South Dakota

	  	
57701

	  	
3,393

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
599

	  	
Tanger Branson

	  	  	  	
Branson

	  	
Missouri

	  	
65616

	  	
3,345

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
600

	  	
Castle Rock Outlets

	  	  	  	
Castle Rock

	  	
Colorado

	  	
80106

	  	
4,718

	  	
Craig Realty Group

	  	
1500 Quail Street

	  	
Suite 100

	  	
Newport Beach

	  	
CA

	  	
92660

	
601

	  	
Silver Sand Outlet Center

	  	  	  	
Destin

	  	
Florida

	  	
32550

	  	
3,852

	  	
Howard Group

	  	
185 Grand Blvd

	  	
Suite 100

	  	
Sandestin

	  	
FL

	  	
32550

	
602

	  	
Northpark Mall

	  	  	  	
Ridgeland

	  	
Mississippi

	  	
39157

	  	
3,753

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
603

	  	
Tyrone Square

	  	  	  	
St. Petersburg

	  	
Florida

	  	
33710

	  	
3,500

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
604

	  	
West Acres

	  	  	  	
Fargo

	  	
North Dakota

	  	
58103

	  	
3,318

	  	
West Acres Development

	  	
P.O. Box 9978

	  	  	  	
Fargo

	  	
ND

	  	
58106

	
605

	  	
University Mall

	  	  	  	
Tampa Bay

	  	
Florida

	  	
33612

	  	
4,026

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
606

	  	
Oakridge Mall

	  	  	  	
San Jose

	  	
California

	  	
95123

	  	
3,065

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
607

	  	
Desert Ridge Mall

	  	  	  	
Phoenix

	  	
Arizona

	  	
85050

	  	
3,550

	  	
Vestar Development

	  	
2425 E Camelback Road

	  	
Siute 750

	  	
Phoenix

	  	
AZ

	  	
85016

	
608

	  	
Florida Mall

	  	  	  	
Orlando

	  	
Florida

	  	
32809

	  	
3,077

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
609

	  	
The Maine Mall Outlets

	  	  	  	
Kittery

	  	
Maine

	  	
3904

	  	
3,203

	  	
Ram Management Company

	  	
200 US RT 1

	  	
Suite 200

	  	
Scarborough

	  	
ME

	  	
4074

	
611

	  	
Coastal Grand Mall

	  	  	  	
Myrtle Beach

	  	
South Carolina

	  	
29577

	  	
3,360

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
612

	  	
Superstition Springs Mall

	  	  	  	
Mesa

	  	
Arizona

	  	
85206

	  	
3,310

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
613

	  	
Tanger Williamsburg (IA)

	  	  	  	
Williamsburg

	  	
Iowa

	  	
52361

	  	
5,000

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
614

	  	
Wheaton Mall

	  	  	  	
Silver Spring

	  	
Maryland

	  	
20902

	  	
3,650

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
615

	  	
St. Augustine Outlets

	  	  	  	
St. Augustine

	  	
Florida

	  	
32092

	  	
3,900

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
616

	  	
Johnson Creek

	  	  	  	
Johnson Creek

	  	
Wisconsin

	  	
53038

	  	
4,000

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
617

	  	
Plaza Camino Real

	  	  	  	
Carlsbad

	  	
California

	  	
92008

	  	
3,860

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
618

	  	
Berkeley Mall

	  	  	  	
Goldsboro

	  	
North Carolina

	  	
27534

	  	
3,782

	  	
Faison

	  	
720 S. Lafayette Street

	  	  	  	
Shelby

	  	
NC

	  	
28150

	
619

	  	
Center at Salisbury

	  	  	  	
Salisbury

	  	
Maryland

	  	
21801

	  	
3,100

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
620

	  	
Barton Creek Mall

	  	  	  	
Austin

	  	
Texas

	  	
78746

	  	
3,615

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
621

	  	
Brandon Town Center

	  	  	  	
Brandon

	  	
Florida

	  	
3351

	  	
3,081

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
622

	  	
North County Fair Mall

	  	  	  	
Escondido

	  	
California

	  	
92025

	  	
4,117

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
623

	  	
Jacksonville Mall

	  	  	  	
Jacksonville

	  	
North Carolina

	  	
28546

	  	
3,015

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
624

	  	
Katy Mills

	  	  	  	
Katy

	  	
Texas

	  	
77494

	  	
3,213

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
625

	  	
Citrus Park Mall

	  	  	  	
Tampa

	  	
Florida

	  	
33625

	  	
3,783

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
626

	  	
Westgate Mall

	  	  	  	
Amarillo

	  	
Texas

	  	
79121-0140

	  	
3,500

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
627

	  	
Mission Valley Mall

	  	  	  	
San Diego

	  	
California

	  	
92108

	  	
3,146

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
628

	  	
Towson Town Center

	  	  	  	
Towson

	  	
Maryland

	  	
21204

	  	
3,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
629

	  	
Parkway Plaza

	  	  	  	
El Cajon

	  	
California

	  	
92020

	  	
3,981

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

 

 

 

  

  

  

 

 

	
630

	  	
Cortana Mall

	  	  	  	
Baton Rouge

	  	
Louisiana

	  	
70815

	  	
3,500

	  	
Mall Prop

	  	
654 Madison Avenue

	  	  	  	
New York

	  	
NY

	  	
10021

	
631

	  	
Southland Mall

	  	  	  	
Houma

	  	
Louisiana

	  	
70364

	  	
3,510

	  	
Sizeler Properties

	  	
4200 Regent Street

	  	
Suite 210

	  	
Columbus

	  	
OH

	  	
43219

	
632

	  	
Belmar Mall

	  	  	  	
Lakewood

	  	
Colorado

	  	
80226

	  	
3,538

	  	
Continuum Property Management Co.

	  	
405 S. Teller St

	  	  	  	
Denver

	  	
CO

	  	
80226

	
633

	  	
Chandler Fashion Center

	  	  	  	
Chandler

	  	
Arizona

	  	
85226

	  	
3,072

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
634

	  	
Panama City

	  	  	  	
Panama City

	  	
Florida

	  	
32405

	  	
2,804

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
635

	  	
Mall St Vincent

	  	  	  	
Shreveport

	  	
Louisiana

	  	
71104

	  	
3,214

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
636

	  	
St Louis Mills

	  	  	  	
Hazelwood

	  	
Missouri

	  	
63042

	  	
3,692

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
637

	  	
Chico Mall

	  	  	  	
Chico

	  	
California

	  	
95928

	  	
3,130

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
638

	  	
Battlefield Mall

	  	  	  	
Springfield

	  	
Missouri

	  	
65804

	  	
4,568

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
639

	  	
Clifton Park Mall

	  	  	  	
Clifton Park

	  	
New York

	  	
12065

	  	
3,400

	  	
The Mills Corp

	  	
900 N Michigan Avenue

	  	
Suite 1300

	  	
Chicago

	  	
IL

	  	
60611

	
640

	  	
Cumberland Mall

	  	  	  	
Vineland

	  	
New Jersey

	  	
8360

	  	
2,994

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
641

	  	
Chapel Hills Mall (CO)

	  	  	  	
Colorado Springs

	  	
Colorado

	  	
80920

	  	
3,547

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
642

	  	
Paddock Mall

	  	  	  	
Ocala

	  	
Florida

	  	
34474

	  	
3,575

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
643

	  	
Richmond Square

	  	  	  	
Richmond

	  	
Indiana

	  	
47374

	  	
4,332

	  	
Landau & Heyman

	  	
249 W 17th Street

	  	  	  	
New York

	  	
NY

	  	
10011

	
644

	  	
East Towne Mall

	  	  	  	
Madison

	  	
Wisconsin

	  	
53704

	  	
3,800

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
645

	  	
Indiana Mall

	  	  	  	
Indiana

	  	
Pennsylvania

	  	
15701

	  	
3,341

	  	
Zamias

	  	
300 Market Street

	  	  	  	
Johnstown

	  	
PA

	  	
15901

	
646

	  	
Markland Mall

	  	  	  	
Kokomo

	  	
Indiana

	  	
46902

	  	
3,480

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
647

	  	
Colorado Mills

	  	  	  	
Lakewood

	  	
Colorado

	  	
80401

	  	
3,467

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
648

	  	
Salem Center

	  	  	  	
Salem

	  	
Oregon

	  	
97301

	  	
3,537

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
649

	  	
Jordan Creek Mall

	  	  	  	
Des Moines

	  	
Iowa

	  	
50266

	  	
3,149

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
650

	  	
Sooner Mall

	  	  	  	
Norman

	  	
Oklahoma

	  	
73072

	  	
3,485

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
651

	  	
Albertville Outlets

	  	  	  	
Albertville

	  	
Minnesota

	  	
55301

	  	
4,500

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
652

	  	
Arrowhead Town Center

	  	  	  	
Glendale

	  	
Arizona

	  	
85038

	  	
3,013

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
653

	  	
Lighthouse Outlets

	  	  	  	
Michigan City

	  	
Indiana

	  	
46360

	  	
4,879

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
654

	  	
Plaza Bonita

	  	  	  	
National City

	  	
California

	  	
91950

	  	
4,064

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
655

	  	
Colonial Mall Decatur

	  	  	  	
Decatur

	  	
Alabama

	  	
35601

	  	
3,235

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
656

	  	
Brookwood Village

	  	  	  	
Birmingham

	  	
Alabama

	  	
35209

	  	
3,610

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
657

	  	
Baybrook Mall

	  	  	  	
Friendswood

	  	
Texas

	  	
77546

	  	
3,482

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
658

	  	
Regency Square Mall (VA)

	  	  	  	
Richmond

	  	
Virginia

	  	
23229

	  	
3,052

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
659

	  	
Algonquin Commons

	  	  	  	
Algonquin

	  	
Illinois

	  	
60102

	  	
3,600

	  	
Jeffery R. Anderson Realty

	  	
3805 Edwards Road

	  	
Suite 700

	  	
Cincinnati

	  	
OH

	  	
45209

	
660

	  	
Spokane Valley Mall

	  	  	  	
Spokane

	  	
Washington

	  	
99216

	  	
3,891

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
661

	  	
Golden Triangle Mall

	  	  	  	
Denton

	  	
Texas

	  	
76205

	  	
3,554

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
662

	  	
Central Mall (TX)

	  	  	  	
Texarkana

	  	
Texas

	  	
75503

	  	
3,199

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
663

	  	
Prime Outlet Williamsburg

	  	  	  	
Williamsburg

	  	
Virginia

	  	
23188

	  	
4,118

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
664

	  	
Adrian Mall

	  	  	  	
Adrian

	  	
Michigan

	  	
49221

	  	
3,434

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
665

	  	
Mall at Wellington Green

	  	  	  	
Wellington

	  	
Florida

	  	
33414

	  	
2,866

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
667

	  	
Victor Valley Mall

	  	  	  	
Victorville

	  	
California

	  	
92393

	  	
3,165

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
668

	  	
Cincinnati Mills

	  	  	  	
Cincinnati

	  	
Ohio

	  	
45240

	  	
3,426

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
669

	  	
Shoppes at Grand Prairie

	  	  	  	
Peoria

	  	
Illinois

	  	
61615

	  	
3,574

	  	
Culian Properties

	  	
211 Fulton Street

	  	
Suite 700

	  	
Pearia

	  	
IL

	  	
61602

	
670

	  	
Clay Terrace Mall

	  	  	  	
Carmel

	  	
Indiana

	  	
21740

	  	
2,832

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
671

	  	
Old Hickory Mall

	  	  	  	
Jackson

	  	
Tennessee

	  	
38305

	  	
3,928

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
672

	  	
Zona Rosa Mall

	  	  	  	
Kansas City

	  	
Missouri

	  	
64153

	  	
3,595

	  	
Steiner and Associates, Inc.

	  	
4200 Regent Street

	  	
Suite 210

	  	
Columbus

	  	
OH

	  	
43219

	
673

	  	
Valley Plaza Mall

	  	  	  	
Bakersfield

	  	
California

	  	
93304

	  	
3,570

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
674

	  	
Chautauqua Mall

	  	  	  	
Lakewood

	  	
New York

	  	
14750

	  	
3,478

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
675

	  	
Ingram Park Mall

	  	  	  	
San Antonio

	  	
Texas

	  	
78238

	  	
3,480

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
676

	  	
Richland Mall

	  	  	  	
Waco

	  	
Texas

	  	
76710

	  	
3,500

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
677

	  	
Broadway Mall

	  	  	  	
Hicksville

	  	
New York

	  	
11801

	  	
4,014

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
678

	  	
Northgate Mall (WA)

	  	  	  	
Seattle

	  	
Washington

	  	
98125

	  	
3,621

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
679

	  	
Melbourne Square Mall

	  	  	  	
Melbourne

	  	
Florida

	  	
32904

	  	
3,000

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
680

	  	
Greenbrier Mall

	  	  	  	
Chesapeake

	  	
Virginia

	  	
23320

	  	
3,502

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
681

	  	
Galleria at Dallas

	  	  	  	
Dallas

	  	
Texas

	  	
75240

	  	
3,200

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
682

	  	
Treasure Coast Mall

	  	  	  	
Jensen Beach

	  	
Florida

	  	
34957

	  	
2,663

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
683

	  	
Tanger Howell

	  	  	  	
Howell

	  	
Michigan

	  	
48855

	  	
4,500

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
684

	  	
Coastland Mall

	  	  	  	
Naples

	  	
Florida

	  	
34102

	  	
3,644

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
685

	  	
Edgewater Mall

	  	  	  	
Biloxi

	  	
Mississippi

	  	
39531

	  	
4,235

	  	
Jim Wilson

	  	
3500 Piedmont Road NE

	  	
Suite 600

	  	
Atlanta

	  	
GA

	  	
30305

	
686

	  	
Broadway Square

	  	  	  	
Tyler

	  	
Texas

	  	
75703

	  	
3,630

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
687

	  	
Osage Beach Outlets

	  	  	  	
Osage Beach

	  	
Missouri

	  	
65065

	  	
4,518

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
688

	  	
Imperial Valley Mall

	  	  	  	
El Centra

	  	
California

	  	
92243

	  	
3,958

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
689

	  	
Mall at Barnes Crossing

	  	  	  	
Tupelo

	  	
Mississippi

	  	
38804

	  	
3,575

	  	
David Hocker

	  	
1901 Frederica Street

	  	  	  	
Owensboro

	  	
KY

	  	
42301

	
690

	  	
Valley Mall (MD)

	  	  	  	
Hagerstown

	  	
Maryland

	  	
21740

	  	
3,025

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
691

	  	
Orange Park Mall

	  	  	  	
Orange Park

	  	
Florida

	  	
32073

	  	
3,127

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
692

	  	
Sunland Park Mall

	  	  	  	
El Paso

	  	
Texas

	  	
79912

	  	
3,407

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
693

	  	
Northwest Arkansas Mall

	  	  	  	
Fayetteville

	  	
Arkansas

	  	
72703

	  	
3,536

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
694

	  	
Flatiron Crossing

	  	
Suite 5555

	  	
Broomfield

	  	
Colorado

	  	
80021

	  	
3,600

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
695

	  	
Parkdale Mall

	  	  	  	
Beaumont

	  	
Texas

	  	
77706

	  	
3,004

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
696

	  	
Charlottesville Mall

	  	  	  	
Charlottesville

	  	
Virginia

	  	
22901

	  	
2,816

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
697

	  	
Houston Galleria

	  	  	  	
Houston

	  	
Texas

	  	
77056

	  	
3,297

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
698

	  	
The Avenues

	  	  	  	
Jacksonville

	  	
Florida

	  	
32256

	  	
3,842

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
699

	  	
Sawgrass Mills Mall

	  	  	  	
Sunrise

	  	
Florida

	  	
33323

	  	
3,326

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
700

	  	
Oak View Mall

	  	  	  	
Omaha

	  	
Nebraska

	  	
68144

	  	
3,344

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
701

	  	
First Colony

	  	  	  	
Sugarland

	  	
Texas

	  	
77479

	  	
3,762

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
702

	  	
Lufkin Mall

	  	  	  	
Lufkin

	  	
Texas

	  	
75901

	  	
3,156

	  	
The Mills Corp

	  	
900 N Michigan Avenue

	  	
Suite 1300

	  	
Chicago

	  	
IL

	  	
60611

	
703

	  	
Southdale Center

	  	  	  	
Edina

	  	
Minnesota

	  	
55435

	  	
3,897

	  	
The Mills Corp

	  	
10 Southdale Center

	  	  	  	
Edina

	  	
MN

	  	
55435

	
704

	  	
Hampshire Mall

	  	  	  	
Hadley

	  	
Massachusetts

	  	
1035

	  	
3,250

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
705

	  	
Coronado Mall

	  	  	  	
Alburquerque

	  	
New Mexico

	  	
87110

	  	
3,454

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
706

	  	
Capital Mall

	  	  	  	
Olympia

	  	
Washington

	  	
98502

	  	
3,240

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
707

	  	
College Square Mall

	  	  	  	
Morristown

	  	
Tennessee

	  	
37813

	  	
4,027

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
708

	  	
Boynton Beach

	  	  	  	
Boynton Beach

	  	
Florida

	  	
33426

	  	
3,314

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
710

	  	
Aviation Mall

	  	  	  	
Queensbury

	  	
New York

	  	
12804

	  	
3,400

	  	
Pyramid

	  	
4 Clinton Square

	  	  	  	
Syracuse

	  	
NY

	  	
13202

	
711

	  	
Paradise Valley Mall

	  	  	  	
Phoenix

	  	
Arizona

	  	
85032

	  	
3,500

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

 

 

 

  

  

  

 

 

 

	
712

	  	
Clinton Crossings Outlet

	  	  	  	
Clinton

	  	
Connecticut

	  	
6413

	  	
4,052

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
713

	  	
Edinburgh Outlets

	  	  	  	
Edinburgh

	  	
Indiana

	  	
46124

	  	
6,074

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
714

	  	
Saint Louis Galleria

	  	  	  	
St. Loius

	  	
Missouri

	  	
63117

	  	
3,663

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
715

	  	
Valencia Town Center

	  	  	  	
Valencia

	  	
California

	  	
91355

	  	
3,289

	  	
The Mills Corp

	  	
24201 W Valencia Blvd

	  	
Suite 150

	  	
Valencia

	  	
CA

	  	
91355

	
716

	  	
Frenchtown Square

	  	  	  	
Monroe

	  	
Michigan

	  	
48162

	  	
2,976

	  	
Cafaro

	  	
2445 Belmont Ave

	  	  	  	
Youngstown

	  	
OH

	  	
44504

	
717

	  	
Ontario Mills

	  	  	  	
Ontario

	  	
California

	  	
91764

	  	
3,769

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
718

	  	
Montgomery Mall (MD)

	  	  	  	
Bethesda

	  	
Maryland

	  	
20817

	  	
3,500

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
719

	  	
Chicago Outlets

	  	  	  	
Aurora

	  	
Illinois

	  	
60504

	  	
4,459

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
720

	  	
Wrentham Outlets

	  	  	  	
Wrentham

	  	
Massachusetts

	  	
2093

	  	
3,531

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
721

	  	
Desoto Square

	  	  	  	
Bradenton

	  	
Florida

	  	
34205

	  	
3,130

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
722

	  	
The Crossings Outlets

	  	  	  	
Tannersville

	  	
Pennsylvania

	  	
18372

	  	
3,000

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
723

	  	
Petaluma Outlets

	  	  	  	
Petaluma

	  	
California

	  	
94952

	  	
4,453

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
724

	  	
Alexandria Mall

	  	  	  	
Alexandria

	  	
Louisiana

	  	
71301

	  	
3,740

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
725

	  	
Burlington Square Mall

	  	  	  	
Burlington

	  	
North Carolina

	  	
27215

	  	
3,000

	  	
Prime Retail, LP.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
726

	  	
Aurora Outlets

	  	  	  	
Aurora

	  	
Ohio

	  	
44202

	  	
4,043

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
727

	  	
The Woodlands Mall

	  	  	  	
The Woodlands

	  	
Texas

	  	
77380

	  	
3,510

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
728

	  	
LaPlaza Mall

	  	  	  	
McAllen

	  	
Texas

	  	
78503

	  	
3,625

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
729

	  	
Fair Oaks Mall

	  	  	  	
Fairfax

	  	
Virginia

	  	
22033

	  	
3,695

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
Ml

	  	
48303

	
730

	  	
Chula Vista Mall

	  	  	  	
Chula Vista

	  	
California

	  	
91910

	  	
3,040

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
731

	  	
Rogue Valley Mall

	  	  	  	
Medford

	  	
Oregon

	  	
97501

	  	
2,895

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
732

	  	
Boise Town Square

	  	  	  	
Boise

	  	
Idaho

	  	
83704

	  	
3,540

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
733

	  	
Lakeside Mall

	  	  	  	
Metairie

	  	
Louisiana

	  	
70002

	  	
3,643

	  	
Lakeside Mall

	  	
3301 Veteran's Memorial Blvd

	  	  	  	
Metairie

	  	
LA

	  	
70002

	
734

	  	
Crabtree Valley Mall

	  	  	  	
Raliegh

	  	
North Carolina

	  	
27612

	  	
3,551

	  	
Plaza Associates

	  	
4325 Glentown Avenue

	  	  	  	
Raleigh

	  	
NC

	  	
27612

	
735

	  	
The Meadows Malt

	  	  	  	
Las Vegas

	  	
Nevada

	  	
89107

	  	
3,690

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
736

	  	
Galleria at Tyler

	  	  	  	
Riverside

	  	
California

	  	
32503

	  	
3,403

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
737

	  	
Sunrise Mall (TX)

	  	  	  	
Brownsville

	  	
Texas

	  	
78256

	  	
3,431

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
738

	  	
Peachtree Mall

	  	  	  	
Columbus

	  	
Georgia

	  	
31909

	  	
3,800

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
739

	  	
Woodbury Commons

	  	  	  	
Central Valley

	  	
New York

	  	
10917

	  	
4,214

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
740

	  	
Atlantic City Outlets

	  	  	  	
Atlantic City

	  	
New Jersey

	  	
8401

	  	
5,100

	  	
Cordish Company

	  	
601 East Pratt St

	  	
6th Floor

	  	
Baltimore

	  	
MD

	  	
21202

	
741

	  	
Las Americas

	  	  	  	
San Ysidro

	  	
California

	  	  	  	
4,500

	  	
JER International

	  	
4211 Camino De La Plaza

	  	
Suite 176

	  	
San Diego

	  	
CA

	  	
92173

	
742

	  	
Woodbury Lakes Mali

	  	  	  	
Woodbury

	  	
Minnesota

	  	
55125

	  	
3,596

	  	
Red Development

	  	
4717 Central Avenue

	  	  	  	
Kansas City

	  	
MS

	  	
64112

	
743

	  	
The Gateway

	  	  	  	
Salt Lake City

	  	
Utah

	  	
84101

	  	
2,704

	  	
Inland Southwest Management LLC

	  	
2901 Butterfield Rd

	  	  	  	
Oak Brook

	  	
IL

	  	
60523

	
744

	  	
University Mall (UT)

	  	  	  	
Orem

	  	
Utah

	  	
84097

	  	
3,942

	  	
Woodbury Corporation

	  	
2733 E Parley Way

	  	
Suite 300

	  	
Salt Lake City

	  	
UT

	  	
84109

	
745

	  	
Provo Town Center

	  	  	  	
Provo

	  	
Utah

	  	
84601

	  	
3,286

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
746

	  	
Palm Desert Mall

	  	  	  	
Palm Desert

	  	
California

	  	
92260

	  	
3,048

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
747

	  	
Camarillo Outlets

	  	  	  	
Camarillo

	  	
California

	  	
93010

	  	
2,925

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
748

	  	
Cielo Vista Mall

	  	  	  	
El Paso

	  	
Texas

	  	
79925

	  	
3,536

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
749

	  	
Northlake Mall

	  	  	  	
Charlotte

	  	
North Carolina

	  	
28216

	  	
3,071

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
750

	  	
Fayette Mall

	  	  	  	
Lexington

	  	
Kentucky

	  	
40503

	  	
3,502

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
751

	  	
Marley Station

	  	  	  	
Glenn Bumie

	  	
Maryland

	  	
21061

	  	
3,500

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
752

	  	
Shops at Saucon Valley

	  	  	  	
Bethlehem

	  	
Pennsylvania

	  	
18034

	  	
3,400

	  	
Saucon Valley Venture LLC

	  	
6410 Popar Avenue

	  	
Suite 850

	  	
Memphis

	  	
TN

	  	
3819

	
753

	  	
Great Mall Milpitas

	  	  	  	
Milpitas

	  	
California

	  	
95035

	  	
3,800

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
754

	  	
Oakland Mall

	  	  	  	
Troy

	  	
Michigan

	  	
48083

	  	
4,000

	  	
Oakland Mall LLC

	  	
39577 Woodward Avenue

	  	
Suite 110

	  	
Bloomfield Hills

	  	
MI

	  	
48304

	
755

	  	
Albany Mall

	  	  	  	
Albany

	  	
Georgia

	  	
31707

	  	
3,676

	  	
Aronov Realty Management

	  	
3500 Eastern Blvd

	  	  	  	
Montgomery

	  	
AL

	  	
36116

	
756

	  	
Rock Hill Galleria

	  	  	  	
Rock Hill

	  	
South Carolina

	  	
29730

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
757

	  	
Lindale Mall

	  	  	  	
Cedar Rapids

	  	
Iowa

	  	
52402

	  	
3,668

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
758

	  	
Citadel Mall (SC)

	  	  	  	
Charleston

	  	
South Carolina

	  	
29407

	  	
2,960

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
759

	  	
Westgate Mall (MA)

	  	  	  	
Brockton

	  	
Massachusetts

	  	
2301

	  	
2,964

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
760

	  	
Rimrock Mall

	  	  	  	
Billings

	  	
Montana

	  	
59102

	  	
3,800

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
761

	  	
Eastridge Mall (CA)

	  	  	  	
San Jose

	  	
California

	  	
95122

	  	
3,335

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
762

	  	
Uniontown Mall

	  	  	  	
Uniontown

	  	
Pennsylvania

	  	
15401

	  	
3,513

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
763

	  	
Crossroads Mall (WV)

	  	  	  	
Breckley

	  	
West Virginia

	  	
25800

	  	
3,620

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
764

	  	
Coral Square Mall

	  	  	  	
Coral Springs

	  	
Florida

	  	
33071

	  	
3,880

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
765

	  	
Turtle Creek Mall

	  	  	  	
Hattiesburg

	  	
Mississippi

	  	
39402

	  	
3,430

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
766

	  	
MacArthur Center

	  	  	  	
Norfolk

	  	
Virginia

	  	
23510

	  	
3,554

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
Ml

	  	
48303

	
767

	  	
Forest Mall

	  	  	  	
Fond Du Lac

	  	
Wisconsin

	  	
54935

	  	
3,533

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
768

	  	
Tacoma Mall

	  	  	  	
Tacoma

	  	
Washington

	  	
98409

	  	
3,587

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
769

	  	
Fingerlakes Mall

	  	  	  	
Auburn

	  	
New York

	  	
13022

	  	
3,591

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
770

	  	
Firewheel Town Center

	  	  	  	
Garland

	  	
Texas

	  	
75040

	  	
3,654

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
771

	  	
Newgate Mall

	  	  	  	
Ogden

	  	
Utah

	  	
84405

	  	
3,456

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
772

	  	
Legends at Village West

	  	  	  	
Kansas City

	  	
Kansas

	  	
66109

	  	
3,384

	  	
Red Development

	  	
4717 Central Avenue

	  	  	  	
Kansas City

	  	
MS

	  	
64112

	
773

	  	
Shoppes at La Cantera

	  	  	  	
San Antonio

	  	
Texas

	  	
78256

	  	
3,246

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
774

	  	
Highland Mall

	  	  	  	
Austin

	  	
Texas

	  	
78752

	  	
3,742

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
775

	  	
Indian River Mall

	  	  	  	
Vero Beach

	  	
Florida

	  	
32966

	  	
2,912

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
776

	  	
Northshore Square Mall

	  	  	  	
Slidell

	  	
Louisiana

	  	
70460

	  	
3,398

	  	
Sizeler Properties

	  	
4200 Regent Street

	  	
Suite 210

	  	
Columbus

	  	
OH

	  	
43219

	
777

	  	
Northridge Mall

	  	  	  	
Northridge

	  	
California

	  	
91324

	  	
3,758

	  	
Genera! Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
778

	  	
Montclair Plaza

	  	  	  	
Montclair

	  	
California

	  	
91763

	  	
3,501

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
779

	  	
Piedmont Mall

	  	  	  	
Danville

	  	
Virginia

	  	
24540

	  	
3,500

	  	
Genera! Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
780

	  	
Santa Rosa Mall

	  	  	  	
Santa Rosa

	  	
California

	  	
95401

	  	
3,201

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
781

	  	
Irvine Spectrum Center

	  	  	  	
Irvine

	  	
California

	  	
92618

	  	
3,430

	  	
Irvine Company

	  	
100 Innovation Dr

	  	  	  	
Irvine

	  	
CA

	  	
92617

	
782

	  	
Layton Hills Mall

	  	  	  	
Layton

	  	
Utah

	  	
84041

	  	
3,281

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
783

	  	
Aurora Mall

	  	  	  	
Aurora

	  	
Colorado

	  	
80012

	  	
3,700

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
784

	  	
Southaven Towne Center

	  	  	  	
Southaven

	  	
Mississippi

	  	
38671

	  	
3,090

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
785

	  	
Eastern Shores

	  	  	  	
Spanish Fort

	  	
Alabama

	  	
36527

	  	
3,500

	  	
MG Herring Group

	  	
5710 LBJ Freeway

	  	
Suite 450

	  	
Dallas

	  	
TX

	  	
75240

	
786

	  	
Mt. Berry Square

	  	  	  	
Rome

	  	
Georgia

	  	
30165

	  	
3,205

	  	
Prime Retail, LP.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
787

	  	
Dolphin Mall

	  	  	  	
Miami

	  	
Florida

	  	
33172

	  	
4,689

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
Ml

	  	
48303

	
788

	  	
Santa Anita Mall

	  	  	  	
Arcadia

	  	
California

	  	
91007

	  	
3,335

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
789

	  	
Fresno Fashion Fair

	  	  	  	
Fresno

	  	
California

	  	
93710

	  	
3,794

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
790

	  	
Settlers Green

	  	  	  	
North Conway

	  	
New Hampshire

	  	
3860

	  	
4,171

	  	
OVP Management

	  	
13 Settlers Green

	  	  	  	
North Conway

	  	
NH

	  	
3860

	
791

	  	
Northridge Mall (CA)

	  	  	  	
Salinas

	  	
California

	  	
93906

	  	
3,840

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

 

 

  

  

  

 

 

	
792

	  	
Newpark Mall

	  	  	  	
Newark

	  	
California

	  	
94560

	  	
3,012

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
793

	  	
Las Vegas Fashion Outlets

	  	  	  	
Primm

	  	
Nevada

	  	
89019

	  	
4,200

	  	
Talisman Company

	  	
5420 Kietzke Lane

	  	
Suite 108

	  	
Reno

	  	
NV

	  	
89511

	
794

	  	
Seattle Premium Outlets

	  	  	  	
Tulalip

	  	
Washington

	  	
98271

	  	
2,935

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
795

	  	
Solano Mall

	  	  	  	
Fairfield

	  	
California

	  	
94533

	  	
3,089

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
796

	  	
Weberstown Mall

	  	  	  	
Stockton

	  	
California

	  	
95207

	  	
3,790

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
797

	  	
Walnut Square Mall

	  	  	  	
Dalton

	  	
Georgia

	  	
30721

	  	
2,901

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
798

	  	
Longview Mall

	  	  	  	
Longview

	  	
Texas

	  	
75604

	  	
4,000

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
799

	  	
Foothills Mall (TN)

	  	  	  	
Maryville

	  	
Tennessee

	  	
37801

	  	
3,600

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
800

	  	
North Georgia Outlets

	  	  	  	
Dawsonville

	  	
Georgia

	  	
30534

	  	
4,014

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
801

	  	
Central Mall (OK)

	  	  	  	
Lawton

	  	
Oklahoma

	  	
73501

	  	
3,174

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
802

	  	
Pittsburgh Mills

	  	  	  	
Tarentum

	  	
Pennsylvania

	  	
15084

	  	
3,321

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
803

	  	
Prien Lake Mall

	  	  	  	
Lake Charles

	  	
Louisiana

	  	
70601

	  	
3,760

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
804

	  	
Metropolis Mall

	  	  	  	
Plainfield

	  	
Indiana

	  	
46168

	  	
3,300

	  	
North Shore Properties

	  	
5252 E 82nd Street

	  	
Suite 300

	  	
Indianapolis

	  	
IN

	  	
46250

	
805

	  	
Volusia Mall

	  	  	  	
Daytona Beach

	  	
Florida

	  	
32114

	  	
2,945

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
806

	  	
Mainplace Mall

	  	  	  	
Santa Ana

	  	
California

	  	
92705

	  	
3,100

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
807

	  	
Rolling Oaks Mall

	  	  	  	
San Antonio

	  	
Texas

	  	
78247

	  	
2,979

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
809

	  	
Bradley Square

	  	  	  	
Cleveland

	  	
Tennessee

	  	
37312

	  	
3,482

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
810

	  	
Gumee Mills Mall

	  	  	  	
Gumee

	  	
Illinois

	  	
60031

	  	
3,500

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
811

	  	
Tucson Mall

	  	  	  	
Tucson

	  	
Arizona

	  	
85705

	  	
3,198

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
812

	  	
Lakewood Center

	  	  	  	
Lakewood

	  	
California

	  	
90712

	  	
3,500

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
813

	  	
South Towne Center

	  	  	  	
Salt Lake City

	  	
Utah

	  	
84070

	  	
3,000

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
814

	  	
Streets at Southpoint

	  	  	  	
Durham

	  	
North Carolina

	  	
27713

	  	
3,845

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
815

	  	
Aubum Mall (MA)

	  	  	  	
Aubum

	  	
Massachusetts

	  	
1501

	  	
3,510

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
816

	  	
Tanger Park City Outlets

	  	  	  	
Park City

	  	
Utah

	  	
84098

	  	
4,500

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
817

	  	
Horizon Outlet Center

	  	  	  	
Tulare

	  	
California

	  	
93274

	  	
4,000

	  	
Horizon Group Properties Inc

	  	
6250 N. River Rd

	  	
Suite 10400

	  	
Rosemont

	  	
IL

	  	
60018

	
818

	  	
Glendale Galleria

	  	  	  	
Glendale

	  	
California

	  	
91210

	  	
2,864

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
819

	  	
Port Charlotte Town Center

	  	  	  	
Port Charlotte

	  	
Florida

	  	
33948

	  	
3,457

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
820

	  	
Hot Springs Mall

	  	  	  	
Hot Springs

	  	
Arkansas

	  	
71913

	  	
3,849

	  	
Aronov Realty Management

	  	
3500 Eastern Blvd

	  	  	  	
Montgomery

	  	
AL

	  	
36116

	
821

	  	
Summit Sierra

	  	  	  	
Reno

	  	
Nevada

	  	
89511

	  	
3,502

	  	
Bayer Properties Inc.

	  	
2222 Arlington Ave.

	  	  	  	
Birmingham

	  	
AL

	  	
35205

	
822

	  	
Regency Square (FL)

	  	  	  	
Jacksonville

	  	
Florida

	  	
32225

	  	
2,863

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
823

	  	
Stonebriar Mall

	  	  	  	
Frisco

	  	
Texas

	  	
75034

	  	
3,242

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
824

	  	
Tanger Locust Grove

	  	  	  	
Locust Grove

	  	
Georgia

	  	
30248

	  	
5,300

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
825

	  	
Northpark Mall

	  	  	  	
Dallas

	  	
Texas

	  	
75225

	  	
3,520

	  	
Nasher

	  	
8080 N Central Expressway

	  	
Suite 100

	  	
Dallas

	  	
TX

	  	
75206

	
826

	  	
Horton Plaza

	  	  	  	
San Diego Bossier

	  	
California

	  	
92101

	  	
3,500

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
827

	  	
Pierre Bossier

	  	  	  	
Bossier

	  	
Louisiana

	  	
71111

	  	
3,412

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
828

	  	
Mall at Turtle Creek

	  	
Suite 200

	  	
Jonesboro

	  	
Arkansas

	  	
72401

	  	
3,500

	  	
David Hocker

	  	
1901 Frederica Street

	  	  	  	
Owensboro

	  	
KY

	  	
42301

	
829

	  	
Tanger Lincoln City

	  	  	  	
Lincoln City

	  	
Nebraska

	  	
97367

	  	
4,297

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
830

	  	
Branson Landing

	  	  	  	
Branson

	  	
Missouri

	  	
65616

	  	
3,054

	  	
The Mills Corp

	  	
3027 W Highway 76

	  	
Suite B

	  	
Branson

	  	
MO

	  	
65616

	
831

	  	
Briarwood Mall

	  	  	  	
Ann Arbor

	  	
Michigan

	  	
48180

	  	
4,344

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
832

	  	
Shops at Sunset

	  	  	  	
Miami

	  	
Florida

	  	
33143

	  	
3,116

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
833

	  	
Columbiana Centre

	  	  	  	
Columbia

	  	
South Carolina

	  	
29212

	  	
3,925

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
834

	  	
Westminster Mall

	  	  	  	
Westminster

	  	
California

	  	
92683

	  	
3,850

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
835

	  	
West Oaks Mall (FL)

	  	  	  	
Orlando

	  	
Florida

	  	
34761

	  	
3,504

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
836

	  	
Victoria Mall (TX)

	  	  	  	
Victoria

	  	
Texas

	  	
77904

	  	
3,500

	  	
Hull Storey Retail Group

	  	
3632 Wheeler Road

	  	  	  	
Augusta

	  	
GA

	  	
30909

	
837

	  	
Merced Mall

	  	  	  	
Merced

	  	
California

	  	
95348

	  	
3,446

	  	
Codding Enterprises

	  	
1400 Valley House Dr.

	  	
Suite 100

	  	
Rohnert Park

	  	
CA

	  	
94928

	
838

	  	
Woodburn Company Store

	  	  	  	
Woodburn

	  	
Oregon

	  	
97071

	  	
4,668

	  	
Craig Realty Group

	  	
1500 Quail Street

	  	
Suite 100

	  	
Newport Beach

	  	
CA

	  	
92660

	
839

	  	
Bonita Lakes

	  	  	  	
Meridian

	  	
Mississippi

	  	
39301

	  	
2,977

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
840

	  	
Carriage Crossing

	  	  	  	
Memphis

	  	
Tennessee

	  	
38017

	  	
3,499

	  	
Wilson

	  	
2500 Windy Ridge Parkway

	  	
Suite 160

	  	
Atlanta

	  	
GA

	  	
30339

	
841

	  	
Killeen Mall

	  	  	  	
Killeen

	  	
Texas

	  	
76543

	  	
3,089

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
842

	  	
Town East (TX)

	  	  	  	
Mesquite

	  	
Texas

	  	
75150

	  	
2,963

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
843

	  	
Willowbend Mall

	  	  	  	
Piano

	  	
Texas

	  	
75093

	  	
3,416

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
844

	  	
Glynn Place

	  	  	  	
Brunswick

	  	
Georgia

	  	
31525

	  	
3,120

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
845

	  	
Oakbrook Center

	  	  	  	
Oakbrook

	  	
Illinois

	  	
60523

	  	
2,997

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
846

	  	
Visalia Mall

	  	  	  	
Visalia

	  	
California

	  	
93277

	  	
4,000

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
847

	  	
Tanger Gonzales Outlets

	  	  	  	
Gonzales

	  	
Louisiana

	  	
70737

	  	
4,000

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
848

	  	
Rosedale Center

	  	  	  	
Roseville

	  	
Minnesota

	  	
55113

	  	
3,390

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
849

	  	
Magic Valley Mall

	  	  	  	
Twin Falls

	  	
Idaho

	  	  	  	
3,353

	  	
Woodbury Corporation

	  	
2733 E Parley Way

	  	
Suite 300

	  	
Salt Lake City

	  	
UT

	  	
84109

	
850

	  	
Galleria at Sunset

	  	  	  	
Henderson

	  	
Nevada

	  	
89014

	  	
3,802

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
851

	  	
Fair Oaks Mall

	  	  	  	
Columbus

	  	
Indiana

	  	
47201

	  	
2,854

	  	
Veritas Realty

	  	
930 E 66th Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46220

	
852

	  	
Grand Teton Mail

	  	  	  	
Idaho Falls

	  	
Idaho

	  	
83404

	  	
3,600

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
853

	  	
Mesilla Valley Mail

	  	  	  	
Las Cruces

	  	
New Mexico

	  	
1502

	  	
3,968

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
854

	  	
Irving Mall (TX)

	  	  	  	
Irving

	  	
Texas

	  	
75062

	  	
3,974

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
855

	  	
Capitola Mall

	  	  	  	
Capitola

	  	
California

	  	
95010

	  	
3,431

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
856

	  	
Jordan Landing

	  	  	  	
West Jordan

	  	
Utah

	  	
84084

	  	
3,798

	  	
Foursquare Properties

	  	
5850 Avenida Encinas

	  	
Suite A

	  	
Carlsnad

	  	
CA

	  	
92008

	
B57

	  	
Red Cliffs Mall

	  	  	  	
St. George

	  	
Utah

	  	
84790

	  	
3,331

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
858

	  	
Bayshore Town Center

	  	  	  	
Milwaukee

	  	
Wisconsin

	  	
53217

	  	
3,502

	  	
Steiner and Associates, Inc.

	  	
4200 Regent Street

	  	
Suite 210

	  	
Columbus

	  	
OH

	  	
43219

	
859

	  	
Tanger Commerce II

	  	  	  	
Commerce

	  	
Georgia

	  	
30529

	  	
4,000

	  	
Tanger Properties, LP.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
860

	  	
Fashion Place

	  	  	  	
Murray

	  	
Utah

	  	
84107

	  	
3,671

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
861

	  	
West Oaks (TX)

	  	  	  	
Houston

	  	
Texas

	  	
77082

	  	
3,500

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
862

	  	
Waterford Lakes Town Center

	  	  	  	
Orlando

	  	
Florida

	  	
32828

	  	
3,128

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
863

	  	
Brea Mall

	  	  	  	
Brea

	  	
California

	  	
92821

	  	
3,400

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
864

	  	
Lloyd Center

	  	  	  	
Portland

	  	
Oregon

	  	
97232

	  	
4,060

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
865

	  	
Columbia Center (WA)

	  	  	  	
Kennewick

	  	
Washington

	  	
99336

	  	
3,361

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
866

	  	
Willowbrook Mall (TX)

	  	  	  	
Houston

	  	
Texas

	  	
77070

	  	
3,248

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
867

	  	
Oak Park Mall

	  	  	  	
Overland Park

	  	
Kansas

	  	
66214

	  	
3,355

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
868

	  	
Merritt Square

	  	  	  	
Merritt Island

	  	
Florida

	  	
32952

	  	
3,650

	  	
Thor Merritt Square

	  	
139 Fifth Avenue

	  	  	  	
New York

	  	
NY

	  	
10010

	
869

	  	
Mall at Stonecrest

	  	  	  	
Lithonia

	  	
Georgia

	  	
30038

	  	
3,200

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
870

	  	
Hershey Outlets

	  	  	  	
Hershey

	  	
Pennsylvania

	  	
17033

	  	
4,065

	  	
FSH Associates

	  	
120 N Pointe Blvd

	  	
Suite 301

	  	
Lancaster

	  	
PA

	  	
17601

	
871

	  	
Shoppes at Montage

	  	  	  	
Moosic

	  	
Pennsylvania

	  	
18507

	  	
3,500

	  	
Jeffery R. Anderson Realty

	  	
3805 Edwards Road

	  	
Suite 700

	  	
Cincinnati

	  	
OH

	  	
45209

	
872

	  	
Round Rock Outlets

	  	  	  	
Round Rock

	  	
Texas

	  	
78664

	  	
3,824

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

 

 

 

  

  

  

 

 

	
873

	  	
Coconut Point

	  	  	  	
Estero

	  	
Florida

	  	
33928

	  	
3,175

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
874

	  	
Gulfview Square

	  	  	  	
Port Richey

	  	
Florida

	  	
34668

	  	
3,650

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
875

	  	
Village at Sandhill

	  	  	  	
Columbia

	  	
South Carolina

	  	
29229

	  	
3,804

	  	
Hill Partners

	  	
10 Flintlake Rd

	  	  	  	
Columbia

	  	
SC

	  	
29223

	
876

	  	
Pinnacle Hills

	  	  	  	
Rogers

	  	
Arkansas

	  	
72758

	  	
3,690

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
877

	  	
Green Oaks Village

	  	  	  	
Brighton

	  	
Michigan

	  	
48116

	  	
3,500

	  	
Lormax

	  	
One Town Square

	  	
Suite 1600

	  	
Southfield

	  	
MI

	  	
75201

	
878

	  	
Shops at Fallen Timbers

	  	
Suite 1599

	  	
Maumee

	  	
Ohio

	  	
43537

	  	
3,545

	  	
General Growth Properties

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
879

	  	
Greene Town Center

	  	  	  	
Beavercreek

	  	
Ohio

	  	
45440

	  	
2,873

	  	
Steiner and Associates, Inc.

	  	
4200 Regent Street

	  	
Suite 210

	  	
Columbus

	  	
OH

	  	
43219

	
880

	  	
Topanga Plaza

	  	  	  	
Canoga Park

	  	
California

	  	
91303

	  	
3,907

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
881

	  	
Miromar Outlets

	  	  	  	
Estero

	  	
Florida

	  	
33928

	  	
4,000

	  	
Mirormar

	  	
10801 Corkscrew Rd

	  	
Suite 305

	  	
Estero

	  	
FL

	  	
33928

	
882

	  	
Rio Grande Outlets

	  	  	  	
Mercedes

	  	
Texas

	  	
78570

	  	
4,284

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
883

	  	
Southgate Mall

	  	  	  	
Missoula

	  	
Montana

	  	
59801

	  	
3,057

	  	
Southgate Mall Associates

	  	
3011 American Way

	  	  	  	
Missoula

	  	
MT

	  	
59808

	
884

	  	
International Plaza

	  	  	  	
Tampa

	  	
Florida

	  	
33607

	  	
4,000

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
MI

	  	
48303

	
885

	  	
Lake Buena Vista Outlets

	  	  	  	
Orlando

	  	
Florida

	  	
32821

	  	
4,000

	  	
Lake Buena Vista Joint Venture

	  	
1725 University Drive

	  	
Suite 450

	  	
Coral Springs

	  	
FL

	  	
33071

	
886

	  	
Prime Outlets at Gulfport

	  	  	  	
Gulfport

	  	
Mississippi

	  	
39503

	  	
4,847

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
887

	  	
Hillsboro Outlets

	  	  	  	
Hillsboro

	  	
Texas

	  	
76645

	  	
4,015

	  	
Prime Retail, LP.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
888

	  	
Mall Del Norte

	  	  	  	
Laredo

	  	
Texas

	  	
78041

	  	
3,800

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
889

	  	
Pinnacle at Tutwiler Farm

	  	  	  	
Birmingham

	  	
Alabama

	  	
35235

	  	
3,480

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
890

	  	
Leesburg Premium Outlets

	  	
Suite 1625

	  	
Leesburg

	  	
Virginia

	  	
20176

	  	
3,467

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
891

	  	
Prime Outlets at Queenstown

	  	  	  	
Queenstown

	  	
Maryland

	  	
21658

	  	
4,000

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
892

	  	
Arden Fair Mall

	  	
Ste 1167

	  	
Sacramento

	  	
California

	  	
95815

	  	
2,867

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
893

	  	
Southlake Town Square

	  	  	  	
Dallas

	  	
Texas

	  	
76092

	  	
3,365

	  	
SLTS Grand Ave, LP

	  	
1256 Main Street

	  	
Suite 240

	  	
Southlake

	  	
TX

	  	
76092

	
894

	  	
Sacramento Gateway

	  	  	  	
Sacramento

	  	
California

	  	
95815

	  	
3,494

	  	
Opus Northwest

	  	
10350 Bren Road West

	  	  	  	
Minnetonka

	  	
MN

	  	
55343

	
895

	  	
Prime Outlets Lebanon

	  	  	  	
Lebanon

	  	
Tennessee

	  	
37090

	  	
3,759

	  	
Prime Retail, LP.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
896

	  	
Tanger Outlet Myrtle Beach

	  	  	  	
Myrtle Beach

	  	
South Carolina

	  	
29572

	  	
3,490

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
897

	  	
Galleria at Centervllle

	  	  	  	
Centerville

	  	
Georgia

	  	
31028

	  	
3,056

	  	
Zamias

	  	
300 Market Street

	  	  	  	
Johnstown

	  	
PA

	  	
15901

	
898

	  	
Oak Hollow

	  	  	  	
High Point

	  	
North Carolina

	  	
27262

	  	
3,190

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
899

	  	
Aiken Mall

	  	
Suite 335

	  	
Aiken

	  	
South Carolina

	  	
29803

	  	
2,989

	  	
Veritas Realty

	  	
930 E 66th Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46220

	
900

	  	
Town Center at Otay Ranch

	  	  	  	
Chula Vista

	  	
California

	  	
91915

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
901

	  	
Randolph Mall

	  	  	  	
Asheboro

	  	
North Carolina

	  	
27203

	  	
3,653

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
902

	  	
Brazos Mall

	  	  	  	
Lake Jackson

	  	
Texas

	  	
77566

	  	
3,537

	  	
Prime Retail, LP.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
903

	  	
Manassas Mall

	  	  	  	
Manassas

	  	
Virginia

	  	
20109

	  	
3,400

	  	
Vomado

	  	
210 Route 4 East

	  	  	  	
Paramus

	  	
NJ

	  	
7652

	
904

	  	
Promenade at Bolingbrook

	  	  	  	
Bolingbrook

	  	
Illinois

	  	
60440

	  	
3,600

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
905

	  	
Prime Outlets Oshkosh

	  	  	  	
Oshkosh

	  	
Wisconsin

	  	
54904

	  	
3,500

	  	
Prime Retail, LP.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
906

	  	
Supermall of the Great Northwest

	  	
Suite 1268

	  	
Auburn

	  	
Washington

	  	
98001

	  	
4,630

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
907

	  	
Tanger Tilton

	  	  	  	
Tilton

	  	
New Hampshire

	  	
3276

	  	
3,500

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
908

	  	
Pembroke Lakes Mall

	  	  	  	
Pembroke Pines

	  	
Florida

	  	
33026

	  	
4,064

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
909

	  	
Puente Hills Mall

	  	  	  	
Industry

	  	
California

	  	
91748

	  	
3,419

	  	
Glimcher Properties Ltd

	  	
150 East Gay Street

	  	  	  	
Columbus

	  	
OH

	  	
43215

	
910

	  	
Cache Valley Mall

	  	  	  	
Logan

	  	
Utah

	  	
84341

	  	
3,253

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
911

	  	
Chesapeake Square Mall

	  	  	  	
Chesapeake

	  	
Virginia

	  	
23321

	  	
3,568

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
912

	  	
Cottonwood Mall

	  	  	  	
Alburquerque

	  	
New Mexico

	  	
87114

	  	
3,025

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
913

	  	
Plaza at West Covina

	  	  	  	
West Covina

	  	
California

	  	
91790

	  	
3,269

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
914

	  	
Shawnee Mall

	  	  	  	
Shawnee

	  	
Oklahoma

	  	
74804

	  	
3,946

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
915

	  	
Antelope Valley Mall

	  	  	  	
Palmdale

	  	
California

	  	
93551

	  	
3,088

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
916

	  	
Cascade Mall

	  	  	  	
Burlington

	  	
Washington

	  	
98233

	  	
3,426

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
917

	  	
Eagle Ridge Mall

	  	  	  	
Lake Wales

	  	
Florida

	  	
33859

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
918

	  	
Westside Pavilion

	  	  	  	
Los Angeles

	  	
California

	  	
90064

	  	
3,858

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
919

	  	
Valley Mall

	  	  	  	
Yakima

	  	
Washington

	  	
98903

	  	
3,646

	  	
Valley Mall LLC

	  	
7455 SW Bridgeport Road

	  	
Suite 205

	  	
Tigard

	  	
OR

	  	
97224

	
920

	  	
Hickory Point Mall

	  	  	  	
Forsyth

	  	
Illinois

	  	
62535

	  	
3,500

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
921

	  	
Prime Outlets Orlando

	  	  	  	
Orlando

	  	
Florida

	  	
32819

	  	
4,500

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
922

	  	
San Tan Village

	  	  	  	
Gilbert

	  	
Arizona

	  	
85296

	  	
3,593

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
924

	  	
Tanger Outlets Lancaster

	  	  	  	
Lancaster

	  	
Pennsylvania

	  	
17602

	  	
3,910

	  	
Tanger Properties, L.P.

	  	
3200 Northline Avenue

	  	
Suite 360

	  	
Greensboro

	  	
NC

	  	
27408

	
925

	  	
Outlet Shopps El Paso

	  	  	  	
El Paso

	  	
Texas

	  	
79932

	  	
4,400

	  	
Horizon Group Properties Inc

	  	
6250 N. River Rd

	  	
Suite 10400

	  	
Rosemont

	  	
IL

	  	
60018

	
926

	  	
Avenue Webb Gin

	  	  	  	
Snellville

	  	
Georgia

	  	
30078

	  	
3,152

	  	
Cousins

	  	
191 Peachtree Street NE

	  	
Suite 3600

	  	
Atlanta

	  	
GA

	  	
30303

	
927

	  	
Town Square Las Vegas

	  	  	  	
Las Vegas

	  	
Nevada

	  	
89119

	  	
3,318

	  	
Tumberry

	  	
P.O. Box 8000

	  	
Dept 976

	  	
Buffalo

	  	
NY

	  	
14267

	
929

	  	
Las Palmas Marketplace

	  	  	  	
El Paso

	  	
Texas

	  	
79936

	  	
3,500

	  	
ADD Holdings

	  	
5823 N. Mesa

	  	
Suite 195

	  	
El Paso

	  	
TX

	  	
79912

	
930

	  	
Mesa Mall

	  	  	  	
Grand Junction

	  	
Colorado

	  	
81505

	  	
3,652

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
931

	  	
Tempe Marketplace

	  	
Suite 350

	  	
Tempe

	  	
Arizona

	  	
85281

	  	
3,516

	  	
Vestar Development

	  	
2425 E Camelback Road

	  	
Siute 750

	  	
Phoenix

	  	
AZ

	  	
85016

	
932

	  	
Pinnacle at Turkey Creek

	  	  	  	
Knoxville

	  	
Tennessee

	  	  	  	
3,267

	  	
Colonial Properties

	  	
2101 6th Ave North

	  	
Suite 750

	  	
Birmingham

	  	
AL

	  	
35203

	
933

	  	
Hamburg Pavilion

	  	  	  	
Lexington

	  	
Kentucky

	  	
40509

	  	
4,000

	  	
Thomas

	  	
45 Ansley Drive

	  	  	  	
Newman

	  	
GA

	  	
30263

	
934

	  	
The Loop

	  	  	  	
Kissimmee

	  	
Florida

	  	
34741

	  	
3,353

	  	
Wilder

	  	
800 Boylston Street

	  	
Suite 1300

	  	
Boston

	  	
MA

	  	
2199

	
935

	  	
Prime Outlets Lee

	  	  	  	
Lee

	  	
Massachusetts

	  	
1238

	  	
4,382

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
936

	  	
Allen Premium Outlets

	  	  	  	
Allen

	  	
Texas

	  	
75013

	  	
4,066

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
937

	  	
The Block at Orange

	  	  	  	
Orange

	  	
California

	  	
92868

	  	
3,400

	  	
Mills Corporation

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
938

	  	
Las Vegas Outlet

	  	  	  	
Las Vegas

	  	
Nevada

	  	
89106

	  	
4,214

	  	
Chelsea Property Group

	  	
105 Eisenhower Parkway

	  	  	  	
Roseland

	  	
NJ

	  	
7068

	
939

	  	
Five Points Plaza

	  	  	  	
Huntington Beach

	  	
California

	  	
92648

	  	
4,125

	  	
Metrovation

	  	
225 108TH Avenue

	  	
NE Suite 520

	  	
Bellevue

	  	
WA

	  	
98004

	
940

	  	
Town Center Plaza

	  	  	  	
Leawood

	  	
Kansas

	  	
66211

	  	
3,971

	  	
DDR

	  	
5029 West 117th Street

	  	  	  	
Leawood

	  	
KS

	  	
66211

	
941

	  	
Gateway Station

	  	  	  	
Fort Worth

	  	
Texas

	  	
76028

	  	
3,225

	  	
Kimco Realty

	  	
3333 New Hyde Park Rd

	  	
Suite 100

	  	
New Hyde Park

	  	
NY

	  	
11042

	
942

	  	
Pacific View Mall

	  	  	  	
Ventura

	  	
California

	  	
93003

	  	
3,683

	  	
Macerich Company

	  	
401 Wilshire Boulevard

	  	
Suite 700

	  	
Santa Monica

	  	
CA

	  	
90401

	
943

	  	
Country Club Mall

	  	  	  	
Cumberland

	  	
Maryland

	  	
21502

	  	
3,600

	  	
JJ Gumberg

	  	
1051 Brinton Road

	  	  	  	
Pittsburgh

	  	
PA

	  	
15221

	
944

	  	
Midland Park

	  	  	  	
Midland

	  	
Texas

	  	
79705-3256

	  	
5,672

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
945

	  	
Highland Village

	  	  	  	
Highland Village

	  	
Texas

	  	
75077

	  	
3,212

	  	
Shops at Highland Village Developers

	  	
121 West Forsyth

	  	
Suite 200

	  	
Jacksonville

	  	
FL

	  	
32202

	
946

	  	
Burr Ridge Town Center

	  	  	  	
Burr Ridge

	  	
Illinois

	  	
60527

	  	
3,052

	  	
Opus Northwest

	  	
10350 Bren Road West

	  	  	  	
Minnetonka

	  	
MN

	  	
55343

	
947

	  	
Cumberland Mall

	  	  	  	
Atlanta

	  	
Georgia

	  	
30339

	  	
3,599

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
948

	  	
South Park Mall

	  	  	  	
San Antonio

	  	
Texas

	  	
78224

	  	
3,500

	  	
Jones Lang LaSalle

	  	
3424 Peachtree Road NE

	  	
Suite 300

	  	
Atlanta

	  	
GA

	  	
30326

	
949

	  	
Colonie Center

	  	  	  	
Albany

	  	
New York

	  	
12205

	  	
3,500

	  	
Feldman

	  	
2201 E. Camelback Rd

	  	
Suite 350

	  	
Phoenix

	  	
AZ

	  	
85016

	
950

	  	
West County Mall

	  	  	  	
Des Peres

	  	
Missouri

	  	
63131

	  	
4,160

	  	
Westfield

	  	
11601 Willshire Boulevard

	  	  	  	
Los Angeles

	  	
CA

	  	
90025

	
951

	  	
Harrisburg Mall

	  	  	  	
Harrisburg

	  	
Pennsylvania

	  	
17111

	  	
4,586

	  	
Feldman

	  	
2201 E. Camelback Rd

	  	
Suite 350

	  	
Phoenix

	  	
AZ

	  	
85016

	
952

	  	
Short Pump Town Center

	  	  	  	
Richmond

	  	
Virginia

	  	
23233

	  	
2,825

	  	
Forest City Enterprises

	  	
100 Terminal Tower

	  	  	  	
Cleveland

	  	
OH

	  	
44113

	
953

	  	
Prime Outlets Pismo Beach

	  	  	  	
Pismo

	  	
California

	  	
93449

	  	
3,500

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
954

	  	
Meadowood Mall

	  	  	  	
Reno

	  	
Nevada

	  	
89502

	  	
4,000

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

 

 

 

  

  

  

 

 

	
955

	  	
Riverdale Village

	  	  	  	
Coon Rapids

	  	
Minnesota

	  	
55433

	  	
3,333

	  	
DDR

	  	
5029 West 117th Street

	  	  	  	
Leawood

	  	
KS

	  	
66211

	
956

	  	
Shops at Centerra

	  	  	  	
Loveland

	  	
Colorado

	  	
80538

	  	
3,960

	  	
Poag & McEwen

	  	
6410 Poplar Avenue

	  	
Suite 850

	  	
Memphis

	  	
TN

	  	
38119

	
957

	  	
Village at Stonecreek

	  	  	  	
San Antonio

	  	
Texas

	  	
78259

	  	
3,405

	  	
Reata

	  	
3300 Enterprise Parkway

	  	  	  	
Beachwood

	  	
OH

	  	
44122

	
958

	  	
Hill Country Galleria

	  	  	  	
Bee Cave

	  	
Texas

	  	
78738

	  	
3,727

	  	
Open Realty

	  	
P.O. Box 8000

	  	
Dept 976

	  	
Buffalo

	  	
NY

	  	
14267

	
959

	  	
North Hanover Mali

	  	  	  	
Hanover

	  	
Pennsylvania

	  	
17331

	  	
4,333

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
962

	  	
Warwick Mall

	  	  	  	
Warwick

	  	
Rhode Island

	  	
2886

	  	
247

	  	
Warwick Mall

	  	
P.O. Box 2513

	  	  	  	
Providence

	  	
RI

	  	
2906

	
1004

	  	
West Coast Distribution Center

	  	  	  	
Ontario

	  	
California

	  	
91761

	  	
359,996

	  	
ProLogis

	  	
2817 E Cedar Street

	  	
Suite 200

	  	
Ontario

	  	
CA

	  	
91761

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
2011

	  	
Jimmy'z Exton Square

	  	  	  	
Exton

	  	
Pennsylvania

	  	
19341

	  	
3,600

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
2012

	  	
Jimmy'Z Galleria at Tyler

	  	  	  	
Riverside

	  	
California

	  	
92503

	  	
3,503

	  	
Genera! Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
2013

	  	
Jimmy'z Wellington Green

	  	  	  	
West Palm Beach

	  	
Florida

	  	
33414

	  	
3,800

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
Ml

	  	
48303

	
2014

	  	
JIMMYZ Woodlands Mall

	  	
Suite 700

	  	
The Woodlands

	  	
Texas

	  	
77380

	  	
3,327

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
2015

	  	
Jimmy'z Woodfield Mall

	  	  	  	
Shaumburg

	  	
Illinois

	  	
60173

	  	
4,283

	  	
Taubman

	  	
200 E Long Lake Road

	  	
Suite 300

	  	
Bloomfield Hills

	  	
Ml

	  	
48303

	
2016

	  	
JIMMY'Z Mall of America

	  	  	  	
Bloomington

	  	
Minnesota

	  	
55425

	  	
3,717

	  	
Simon Property Group

	  	
225 W Washington Street

	  	  	  	
Indianapolis

	  	
IN

	  	
46204

	
2017

	  	
Jimmy'z San Marcos Outlets

	  	  	  	
San Marcos

	  	
Texas

	  	
78666

	  	
4,012

	  	
Prime Retail, L.P.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
2018

	  	
Jimmy'z Grove City Outlets

	  	  	  	
Grove City

	  	
Pennsylvania

	  	
16127

	  	
5,446

	  	
Prime Retail, LP.

	  	
326 Third Street

	  	  	  	
Lakewood

	  	
NJ

	  	
8701

	
2019

	  	
Jimmy'z Logan Valley Mall

	  	  	  	
Altoona

	  	
Pennsylvania

	  	
16602

	  	
3,319

	  	
Preit-Rubin

	  	
200 South Broad Street

	  	  	  	
Philadelphia

	  	
PA

	  	
19102

	
2020

	  	
Jimmy'z St. Louis Galleria

	  	  	  	
St. Louis

	  	
Missouri

	  	
63117

	  	
3,500

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
2021

	  	
Jimmy'z Fox River Mall

	  	  	  	
Appleton

	  	
Wisconsin

	  	
54913

	  	
3,368

	  	
General Growth

	  	
110 N Wacker Dr.

	  	  	  	
Chicago

	  	
IL

	  	
60606

	
2022

	  	
Jimmy'z Hanes Mall

	  	  	  	
Winston-Salem

	  	
North Carolina

	  	
27103

	  	
3,952

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	
2023

	  	
Jimmy'z Manhattan Mall

	  	  	  	
New York

	  	
New York

	  	
10001

	  	
4,500

	  	
Argent Ventures LLC

	  	
551 Fifth Avenue

	  	
34th Floor

	  	
New York

	  	
NY

	  	
10176

	
2024

	  	
Jimmy'z College Square

	  	  	  	
Morristown

	  	
Tennessee

	  	
37813

	  	
3,500

	  	
CBL & Associates

	  	
2030 Hamilton Place Blvd

	  	  	  	
Chattanooga

	  	
TN

	  	
37421

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
3009

	  	
Canadian Office

	  	
Suite 208

	  	
Mississauga

	  	
Ontario

	  	
L4V1E3

	  	
1,391

	  	
Orlando Corporation

	  	
6205 Airport Road

	  	  	  	
Mississauga

	  	
Ontario

	  	
L4V 1E3

	
3011

	  	
Metropolis at Metrotown

	  	
M175

	  	
Burnaby

	  	
British Columbia

	  	
V5H4P1

	  	
3524

	  	
Ivanhoe Cam

	  	
1001 Square Victoria

	  	
bureau C-500

	  	
Montreal

	  	
Quebec 

	  	
 H2Z 2B5

	
3012

	  	
Guildford TC

	  	
2608A

	  	
Surrey

	  	
British Columbia

	  	
V3R7C1

	  	
3608

	  	
Ivanhoe Cam

	  	
1001 Square Victoria

	  	
bureau C-500

	  	
Montreal

	  	
Quebec 

	  	
 H2Z 2B5

	
3013

	  	
White Oaks Mall

	  	
491/495

	  	
London

	  	
Ontario

	  	
N6E1V4

	  	
3380

	  	
Redcliff

	  	
4040 University Avenue

	  	
Suite 1200

	  	
Toronto

	  	
Ontario

	  	
M5J1T1

	
3014

	  	
Pickering Town Center

	  	
193

	  	
Pickering

	  	
Ontario

	  	
L1V1B8

	  	
3434

	  	
20 Vic

	  	
1355 Kingston Road

	  	  	  	
Pickering

	  	
Ontario

	  	
L1V1B8

	
3015

	  	
Fairview Park

	  	
E005

	  	
Kitchener

	  	
Ontario

	  	
N2C1X1

	  	
3026

	  	
Cadillac Fairview

	  	
20 Queen Street West

	  	
5th Floor

	  	
Toronto

	  	
Ontario

	  	
MSH 3R4

	
3016

	  	
Georgian Mall

	  	
D 016

	  	
Barrie

	  	
Ontario

	  	
L4M4Z8

	  	
3384

	  	
Cadillac Fairview

	  	
20 Queen Street West

	  	
5th Floor

	  	
Toronto

	  	
Ontario

	  	
MSH 3R4

	
3017

	  	
Oakville Place

	  	
121A

	  	
Oakville

	  	
Ontario

	  	
L6H3H6

	  	
3191

	  	
Ivanhoe Cam

	  	
1001 Square Victoria

	  	
bureau C-500

	  	
Montreal

	  	
Quebec 

	  	
 H2Z 2B5

	
3018

	  	
Vaughan Mills

	  	
439

	  	
Vaughn

	  	
Ontario

	  	
L4K5W4

	  	
5095

	  	
Ivanhoe Cam

	  	
1001 Square Victoria

	  	
bureau C-500

	  	
Montreal

	  	
Quebec 

	  	
 H2Z 2B5

	
3019

	  	
Dufferin Mall

	  	
168

	  	
Toronto

	  	
Ontario

	  	
M6H4B1

	  	
3112

	  	
Oxford

	  	
130 Adelaide Street

	  	
Suite 100

	  	
Toronto

	  	
Ontario

	  	
M5H 3P5

	
3021

	  	
Square One

	  	
2-305

	  	
Mississauga

	  	
Ontario

	  	
L5B2C9

	  	
3447

	  	
Oxford

	  	
130 Adelaide Street

	  	
Suite 100

	  	
Toronto

	  	
Ontario

	  	
M5H 3P5

	
3022

	  	
Lime Ridge Mall

	  	
229B

	  	
Hamilton

	  	
Ontario

	  	
L9A4X5

	  	
3135

	  	
Cadillac Fairview

	  	
20 Queen Street West

	  	
5th Floor

	  	
Toronto

	  	
Ontario

	  	
MSH 3R4

	
3023

	  	
Scarborough TC

	  	
46/47

	  	
Scarborough

	  	
Ontario

	  	
M1P4P5

	  	
3235

	  	
Oxford

	  	
130 Adelaide Street

	  	
Suite 100

	  	
Toronto

	  	
Ontario

	  	
M5H 3P5

 

 

  

  

  

 

EXHIBIT 4-6

 

ENCUMBERANCES

 

   Please see attached.

 

 

 

 

 

 

  

  

  

 

FLEET RETAIL/AEROPOSTALE/MSS DELAWARE

UCC Search Chart

2/14/08

	
DEBTOR

	
STATE

	
FILING OFFICE

	
SEARCH THRU DATE

	
TAX LIEN – SEE LEGEND

	
SECURED CREDITOR

	
FILING DATE

	
FILING NUMBER

	
ACOUNTS RECIEVABLE

	
INVENTORY

	
EQUIPMENT (ALL)

	
EQUIPMENT (SPECIFIC)

	
GOODS

	
INVESTMENT PROPERTY

	
GENERAL INTANGIBLES

	
INTELLECTUAL PROPERTY

	
R.E. FIXTURE FILING

	
OTHER COLLATERAL AND/OR COMMENTS

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	
F:C

	
Fleet Retail Finance Inc. (Formerly known as BankBoston Retail Finance Inc.), as Agent Continuation

	
11/26/01

 

 

 

10/12/06

	
11535942

 

 

 

63529575

	
X

	
X

	
X

	  	
X

	
X

	
X

	
X

	  	
In Lieu Financing Statement

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit Corporation (Lessor)

	
2/11/02

	
20590376

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit Corporation

	
8/1/02

	
22024366

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit Corporation

	
8/2/02

	
22038556

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
1/29/03

	
30496334

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
4/11/03

	
30946346

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, inc.

	
DE

	
SOS

	
10/31/07

	  	
Racine Joing Venturell, CBL & Associates Properties, Inc.

	
7/15/03

	
32010372

	
X

	
X

	
X

	  	
X

	
X

	  	  	  	
Security interest granted to Landlord by Tenant

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
5/3/04

	
41226796

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
4/12/05

	
51122523

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
7/11/05

	
52117746

	  	  	  	
X

	  	  	  	  	  	
Lease

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
Georgia Square Mai!

	
4/08/06

	
61389535

	
X

	
X

	
X

	  	
X

	
X

	  	  	  	
Security interest granted to Landlord by Tenant

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
CBL & Associates Properties

	
5/30/06

	
6185994

	
X

	
X

	
X

	  	
X

	
X

	  	  	  	
Security interest granted to Landlord by Tenant

	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
6/29/06

	
62246189

	  	  	  	
X

	  	  	  	  	  	  
	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
1/3/07

	
70016856

	  	  	  	
X

	  	  	  	  	  	  
	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
2/15/07

	
70608736

	  	  	  	
X

	  	  	  	  	  	  
	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
7/2/07

	
72496072

	  	  	  	
X

	  	  	  	  	  	  
	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
9/19/07

	
73541892

	  	  	  	
X

	  	  	  	  	  	  
	
Aeropostale, Inc.

	
DE

	
SOS

	
10/31/07

	  	
IBM Credit LLC

	
10/24/07

	
74028519

	  	  	  	
X

	  	  	  	  	  	  

F: Federal Tax Lien

S: State Tax Lien

J: Judgment Lien

C: Clear

 

979915_1.XLS

 

  

1

  

21694.00138

 

FLEET RETAIL/AEROPOSTALE/MSS DELAWARE

UCC Search Chart

2/14/08

	
Aeropostale West, Inc.

	
DE

	
SOS

	
10/31/07

	  	
Fleet Retail Finance Inc. (Formerly known as BankBoston Retail Finance Inc.), as Agen

 

Continuation

	
2/1/02

 

 

10/12/06

	
20282032

 

 

63529559

	
X

	
X

	
X

	  	
X

	
X

	
X

	
X

	  	
In Lieu Financing Statement

	
Aero GC Management LLC

	
VA

	
SOS

	
11/02/07

	  	
No UCC Filings

	  	  	  	  	  	  	  	  	  	  	  	  
	
Aero GC Management LLC

	
VA

	
SOS

	
11/02/07

	
F: C

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Aero GC Management LLC

	
VA

	
Richmond City

	
11/07/07

	
S: C

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Aero GC Management LLC

	
NY

	
SOS

	
11/02/00

	
F: C

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Aero GC Management LLC

	
NY

	
New York County

	
10/28/07

	
S: C

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Jimmy 'Z Surf Co., Inc.

	
DE

	
SOS

	
11/01/07

	  	
No UCC Filings

	  	  	  	  	  	  	  	  	  	  	  	  
	
Jimmy 'Z Surf Co., Inc.

	
DE

	
SOS

	
11/01/07

	
F: C

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Jimmy 'Z Surf Co., Inc.

	
DE

	
New Castle County

	
11/01/07

	
S: C

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Jimmy 'Z Surf Co., Inc.

	
NY

	
SOS

	
11/02/07

	
S: C

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Jimmy 'Z Surf Co., Inc.

	
NY

	
New York County

	
10/28/07

	
S: C

	  	  	  	  	  	  	  	  	  	  	  	  	  

F: Federal Tax Lien

S: State Tax Lien

J: Judgment Lien

C: Clear

 

 

9979915_1.XLS

 

  

2

  

 

 

Exhibit 4-7

Indebtedness

 

    None.

   

 

 

 

  

  

  

 

 

Exhibit 4-8

Insurance Policies

(See Attached)

 

 

 

 

STANDARD FIRE INSURANCE POLICY

[Affiliated FM Logo]

Affiliated FM Insurance Company

P.O. Box 7500

Johnston, Rhode Island 02919

1-800-343-7722

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

 

 

 

 

 

THE HANOVER INSURANCE COMPANY

THE HANOVER INSURANCE COMPANY, 440 LINCOLN ST., WORCESTER, MA 01605

COMMERCIAL LINES POLICY

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

 

 

 

 

[THE HANOVER INSURANCE GROUP LOGO]

COMMERCIAL UMBRELLA POLICY

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

 

 

 

 

 

EXCESS LIABILITY POLICY

FIREMAN’S FUND INSURANCE COMPANIES

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

 

 

 

[THE HANOVER INSURANCE GROUP LOGO]

COMMERCIAL LINES POLICY

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

 

 

[TRAVELERS LOGO]

WORKERS COMPENSATION

AND

EMPLOYERS LIABILITY POLICY

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

 

 

[AXIS LOGO]

SECUREXCESS DECLARATIONS

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

 

  

  

  

 

 

 

Exhibit 4-10

Capital Leases

 

    None.

   

 

 

 

 

  

  

  

 

 

Exhibit 4-13

Taxes

 

    None.

   

 

 

 

  

  

  

 

 

Exhibit 4-17

                                                                                                                                        LITIGATION

	
MATTER

	
CLAIM AMT

	
DESCRIPTION

	
STATUS

	
Matters in

Litigation/

Mediation:

	  	  	  
	  	  	  	  
	
Pictures Patents,

LLC V.

Aeropostale

	
Unspecified

	
Plaintiff purports to own a patent on a technology which permits picture images to be viewed and linked to over the Internet. They are claiming our website uses their technology.

	
*

	  	  	  	  
	
Card Activation

Technologies v.

Aeropostale

	
Unspecified

	
Plaintiff purports to own a patent on a technology which allows debit card terminals to talk to a central network and receive authorizations. They are claiming our debit card terminals in our stores use their patented technology.

	
*

	  	  	  	  
	
Administrative

Hearings:

	  	  	  
	
Various Unrelated Employee Claims (EEOC related Claims)

	
Unspecified

	
7 complaints filed by former store employees for various issues.

	
*

	  	  	  	  
	
Various Accident Reports/Product Related Claims (Storeline)

	
Unspecified

	
6 accidents claimed to have occurred in a store (submitted to insurance)

	
*

* = Material omitted pursuant to a request for Confidentiality Treatment and filed separately with the Commission on the date of filing of this form 10-Q.

  

  

  

Exhibit 4-22

Permitted Management Fees and Other Affiliated Transactions

*

* = Material omitted pursuant to a request for Confidentiality Treatment and filed separately with the Commission on the date of filing of this form 10-Q.

  

  

  

 

 

EXHIBIT 4-23

 

EXCLUDED ASSETS

 

   1.  Collateral as to which the security interest in favor of the Lender either (a) may not be perfected by the filing of a financing statement under the applicable Uniform Commercial Code or (b) as to which the Lender has elected not to perfect its security interest, for whatever reason.

 

    2. To the extent not included in Item 1 above, real property leasehold interests.

 

 

 

 

 

  

  

  

 

Exhibit 5-5

Borrowing Base Certificate

 

(See Attached)

 

 

 

  

  

  

 

AEROPOSTALE. INC.

REVOLVING LINE OF CREDIT AVAILABILITY CALCULATION IF BORROWINGS ARE LESS THAN S75MM

 

 

	
E-E-MAIL TO: Gheisa Cruz at gheisa.m.cruz@bankofamerica.com

F  FAX TO: (617) 434-4310

	  	
Cert. No.

	  
	  	  	  	  
	
G General Ledger Inventory as of:                   ___________

	  	
$

	
-

	
(A)

	  	  	  	  	  
	
StStated Inventory Advance Rate:

	  	  	
95.0

	
% (B)

	  	  	  	  	  
	
InInventory Availability (A*B)

	  	
$

	
-

	
(C)

	  	  	  	  	  
	
MMajor Credit Card Receivables as of:           ___________

	  	
$

	
-

	
(D)

	  	  	  	  	  
	
MMajor Credit Card Receivable Advance Rate:

	  	  	
85.0

	
% (E)

	  	  	  	  	  
	
MMajor Credit Card Receivable Availability (D*E)

	  	  	
-

	
(F)

	  	  	  	  	  
	
L LESS Availability Reserves:

	  	  	  	  
	  	  	  	  	  
	
Gift Certificates (50% of outstanding)

	  	
$

	  	  
	
Rent (2 months in WA, VA, PA)

	  	
$

	  	  
	
Other Availability Reserves (TBD based on results of field exam)

	  	
$

	  	  
	  	  	  	  	  
	
TOTAL AVAILABILITY RESERVES

	  	
$

	
-

	
(G)

	  	  	  	  	  
	
Total Uncapped Borrowing Base (C+F-G)

	  	
$

	  	  
	  	  	  	  	  
	
Total Capped Borrowing Base (not to exceed $150MM)

	  	
$

	
-

	
(H)

 

	
AVAILABILITY CALCULATION

	  	  	  
	  	  	  	  
	
Beginning Principal Balance

	  	
$

	  	  
	
ADD:           Prior days advance

	  	
$

	
-

	  
	
LESS:           Prior day's paydown

	  	
$

	  	  
	  	  	  	  	  
	
Ending principal balance

	  	
$

	  	  
	  	  	  	  	  
	
ADD:           Standby Letters of Credit

	  	
$

	  	  
	
ADD:           Documentary Letters of Credit

	  	
$

	  	  
	  	  	  	  	  
	
Total loan balance prior to request

	  	
$

	
-

	
(1)

	  	  	  	  	  
	
Net availability prior to today's request (H-I)

	  	
$

	
-

	
(J)

	  	  	  	  	  
	
ADVANCE REQUEST

	  	
$

	
-

	
(K)

	  	  	  	  	  
	
Net availability after today's request (J-K)

	  	
$

	
-

	
(L)

The undersigned represents and warrants that (a) the information set forth above has been prepared in accordance with the requirements of the Second Amended and Restated Loan and Security Agreement (the "Agreement") among the Borrower and Bank of America, N.A.; (b) the information set forth above is complete and correct; (c) no "Default" (as defined in the Agreement) is presently in existence; and (c) all or a portion of the advance requested hereby will be set aside by the Borrower to cover 100% of the Loan Parties' obligation for sales tax on account of sales since the most recent borrowing under the Agreement.

	
Authorized Signer

	  

 

 

 

 

  

  

  

 

AEROPOSTALE, INC.

REVOLVING LINE OF CREDIT AVAILABILITY CALCULATION IF BORROWINGS EXCEED $75MM

	
E-E-MAIL TO: Gheisa Cruz at gheisa.m.cruz@bankofamerica.com

F  FAX  TO: (617) 434-4310

	  	
Cert. No. 

	  
	  	  	  	  
	
Stock Ledger Inventory at Cost as of:            ___________

	  	
$

	
-

	  
	  	  	  	  	  
	
LESS Inventory Reserves:

	  	  	  	  
	  	  	  	  	  
	
Shrink

	  	
$

	
-

	  
	
RTVs

	  	
$

	
-

	  
	
Damaged Inventory

	  	
$

	
-

	  
	
Other Inventory Reserves (TBD based on results of field exam)

	  	
$

	
-

	  
	  	  	  	  	  
	
TOTAL INVENTORY RESERVES

	  	
$

	
-

	  
	  	  	  	  	  
	
Eligible Inventory, as of:                                   ___________

	  	
$

	
-

	
(A)

	  	  	  	  	  
	
Effective Inventory Advance Rate:

	
Appraised NOLV of Eligible Inventory

	  	
Inventory Advance Percentage

	  	  	
TBD

	
(B)

	
(85% of Appraised NOLV of

	
TBD based on updated appraisal

	  	
TBD

	  	  	  	  
	
Eligible Inventory)

	  	  	  
	  	  	  	  	  
	
Inventory Availability (A*B)

	  	
#VALUE!

	
(C)

	  	  	  	  	  
	
Major Credit Card Receivables as of:             ___________

	  	
$

	
-

	
(D)

	  	  	  	  	  
	
Major Credit Card Receivable Advance Rate:

	  	  	
85.0

	
% (E)

	  	  	  	  	  
	
Major Credit Card Receivable Availability (D*E)

	  	
-

	
(F)

	  	  	  	  	  
	
LESS Availability Reserves:

	  	  	  	  
	  	  	  	  	  
	
Gift Certificates (50% of outstanding)

	  	
$

	
-

	  
	
Rent (2 months in WA, VA, PA)

	  	
$

	
-

	  
	
Other Availability Reserves (TBD based on results of field exam)

	  	
$

	
-

	  
	  	  	  	  	  
	
TOTAL AVAILABILITY RESERVES

	  	
$

	
-

	
(G)

	  	  	  	  	  
	
Total Uncapped Borrowing Base (C+F-G)

	  	
#VALUE!

	  
	  	  	  	  	  
	
Total Capped Borrowing Base (not to exceed $150MM)

	  	
#VALUE!

	
(H)

 

	
AVAILABILITY CALCULATION

	  	  	  
	  	  	  	  
	
Beginning Principal Balance

	  	
$

	
-

	  
	
ADD:           Prior days advance

	  	
$

	
-

	  
	
LESS:           Prior day's paydown

	  	
$

	
-

	  
	  	  	  	  	  
	
Ending principal balance

	  	
$

	
-

	  
	  	  	  	  	  
	
ADD:           Standby Letters of Credit

	  	
$

	
-

	  
	
ADD:           Documentary Letters of Credit

	  	
$

	  	  
	  	  	  	  	  
	
Total loan balance prior to request

	  	
$

	
-

	
(1)

	  	  	  	  	  
	
Net availability prior to today's request (H-I)

	  	  	
(J)

	  	  	  	  	  
	
ADVANCE REQUEST

	  	
$

	
-

	
(K)

	  	  	  	  	  
	
Net availability after today's request (J-K)

	  	  	
(L)

The undersigned represents and warrants that (a) the information set forth above has been prepared in accordance with the requirements of the Second Amended and Restated Loan and Security Agreement (the "Agreement") among the Borrower and Bank of America, N.A.; (b) the information set forth above is complete and correct; (c) no "Default" (as defined in the Agreement) is presently in existence; and (c) all or a portion of the advance requested hereby will be set aside by the Borrower to cover 100% of the Loan Parties' obligation for sales tax on account of sales since the most recent borrowing under the Agreement.

	
Authorized Signer

	  

 

 

 

  

  

  

 

EXHIBIT 6-3

 

BONDS & DEPOSITS

 

    Aeroposale, Inc. has guaranteed Jimmy'Z Surf Co., Inc.'s store operating leases.

 

 

 

 

  

  

  

 

 

 

Exhibit 7-1

DDAs

(See Attached)

 

  

  

  

 

Aeropostale Stores’ Depository Bank Accounts

12/6/07

*

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

 

  

  

  

 

Exhibit 7-2

Credit Card Arrangements

The Loan Parties currently have the following credit card agreements in place:

	
1)  

	
Aeropostale, Inc. First Data Merchant Services (merchant number: *)

	
2)  

	
Jimmy’Z Surf Co., Inc.: First Data Merchant Services (merchant number: *)

	
3)  

	
Aeropostale, Inc. and Jimmy’Z Surf Co., Inc.: American Express (merchant number: *)

	
4)  

	
Aeropostale, Inc. and Jimmy’Z Surf Co., Inc.: Discover Card (merchant number: *)

None of the above agreements are currently evidenced by a writing.  However, the Loan Parties are in process of acquiring written documentation to evidence each of the above agreements, which shall be immediately furnished to Lender upon completion.

1062846.1

* = Material omitted pursuant to a request for Confidential Treatment and filed separately with the Commission on the date of filing of this Form 10-Q.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]