EX-10.3 11 tm247564d1_ex10-3.htm EXHIBIT 10.3
Exhibit 10.3

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EX-10.1 2 exhibit101forcreditagrmt.htm EX-10.1 Exhibit 10.1 3526499.6 FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT This First Amendment to Third Amended and Restated Credit Agreement (this “Amendment”) is made as of this 31st day of March, 2023, among PHYSICIANS REALTY L.P., a Delaware limited partnership (the “Borrower”), PHYSICIANS REALTY TRUST, a Maryland real estate investment trust (the “Parent” together with the Borrower, the “Credit Parties”), KEYBANK NATIONAL ASSOCIATION, a national banking association, as admin i s t r a t i v e a g e n t ( t h e “ A d m i n i s t r a t i v e A g e n t ” ), a n d t h e L e n d e r s p a r t y h e r e t o. W I T N E S S E T H: W H E R E A S, t h e C r e d i t P a r t i e s, t h e A d m i n i s t r a t i v e A g e n t a n d t h e L e n d e r s h a v e e n t e r e d i n t o a c e r t a i n T h i r d A m e n d e d a n d R e s t a t e d C r e d i t A g r e e m e n t d a t e d a s o f S e p t e m b e r 2 4, 2 0 2 1 ( a s a m e n d e d, r e s t a t e d, s up p l e m e n t e d o r o t h e r w i s e m o d i fi e d a n d i n e ffe c t fr o m t i m e t o t i m e, t h e “ C r e d i t A g r e e m e n t ” ) w h e r e i n t h e A d m i n i s t r a t i v e A g e n t a n d t h e L e n d e r s a g r e e d t o p r o v i d e a r e v o l v i n g c r e d i t fa c i l i t y t o t h e B o r r o w e r i n t h e a g g r e g a t e p r i n c i p a l a m o u n t o f up t o $ 1,0 0 0,0 0 0,0 0 0.0 0 a n d a t e r m l o a n fa c i l i t y t o t h e B o r r o w e r i n t h e o r i g i n a l p r i n c i p a l a m o u n t o f $ 2 5 0,0 0 0,0 0 0.0 0; a n d W H E R E A S, t h e C r e d i t P a r t i e s, t h e A d m i n i s t r a t i v e A g e n t a n d t h e L e n d e r s h a v e a g r e e d t o a m e n d t h e C r e d i t A g r e e m e n t a s s e t fo r t h h e r e i n. N O W, T H E R E F O R E, t h e p a r t i e s h e r e t o a g r e e a s fo l l o w s: 1. D e fi n e d Te r m s; R e fe r e n c e s. U n l e s s o t h e r w i s e s p e c i fi c a l l y d e fi n e d h e r e i n, e a c h t e r m u s e d h e r e i n t h a t i s d e fi n e d i n t h e C r e d i t A g r e e m e n t h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n t h e C r e d i t A g r e e m e n t. E a c h r e fe r e n c e t o “ h e r e o f”, “ h e r e u n d e r ”, “ h e r e i n ” a n d “ h e r e b y ” a n d e a c h o t h e r s i m i l a r r e fe r e n c e a n d e a c h r e fe r e n c e t o “ t h i s A m e n d m e n t ” a n d e a c h o t h e r s i m i l a r r e fe r e n c e c o n t a i n e d i n t h e C r e d i t A g r e e m e n t a n d o t h e r C r e d i t D o c u m e n t s s h a l l, a ft e r t h i s A m e n d m e n t b e c o m e s e ffe c t i v e, r e fe r t o t h e C r e d i t A g r e e m e n t a s a m e n d e d h e r e b y. 2. A m e n d m e n t s t o C r e d i t A g r e e m e n t. S u bj e c t t o s a t i s fa c t i o n o r w a i v e r o f t h e c o n d i t i o n s p r e c e d e n t s e t fo r t h i n S e c t i o n 3 h e r e o f, t h e C r e d i t A g r e e m e n t, t h e A n n e x e s a n d E x h i b i t s ( b u t n o t t h e S c h e du l e s a t t a c h e d t h e r e t o ) a r e h e r e b y a m e n d e d t o d e l e t e t h e s t r i c k e n t e x t ( i n d i c a t e d t e x tu a l l y i n t h e s a m e m a n n e r a s t h e fo l l o w i n g e x a m p l e: s t r i c k e n t e x t o r s t r i c k e n t e x t ) a n d t o a d d t h e d o u b l e - u n d e r l i n e d t e x t ( i n d i c a t e d t e x tu a l l y i n t h e s a m e m a n n e r a s t h e fo l l o w i n g e x a m p l e: d o u b l e - u n d e r l i n e d t e x t o r d o u b l e - u n d e r l i n e d t e x t ) a s s e t fo r t h i n t h e C r e d i t A g r e e m e n t a t t a c h e d h e r e t o a s A n n e x A t o t h i s A m e n d m e n t. 3. C o n d i t i o n s P r e c e d e n t. T h i s A m e n d m e n t s h a l l b e c o m e e ffe c t i v e a s o f t h e fi r s t d a t e w h e n e a c h o f t h e fo l l o w i n g c o n d i t i o n s s h a l l h a v e b e e n s a t i s fi e d o r w a i v e d i n w r i t i n g b y t h e A d m i n i s t r a t i v e A g e n t: ( a ) N e i t h e r a D e fa u l t n o r E v e n t o f D e fa u l t s h a l l e x i s t o r w o u l d r e s u l t fr o m t h e e ffe c t i v e n e s s o f t h i s A m e n d m e n t.

 

 

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2 (b) The Administrative Agent shall have received executed counterparts hereof that, when taken together, bear the signatures of the Credit Parties, the Lenders, and the Administrative Agent. (c) The Administrative Agent shall have confirmation that all reasonable and documented out-of-pocket fees and expenses required to be paid on or before the date hereof have been paid, including the reasonable and documented out-of-pocket fees and expenses of counsel for the Administrative Agent. 4. Representations and Warranties. The Credit Parties hereby represent, warrant and covenant with the Administrative Agent and the Lenders that, as of the date hereof: (a) The representations and warranties contained herein and in the other Credit Documents are true and correct in all material respects on and as of the date hereof to the same extent as though made on and as of that date (with any representations and warranties which are subject to a materiality qualifier being true and correct in all respects in accordance with the terms thereof), except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all material respects on and as of such earlier date. (b) No Default or Event of Default has occurred and is continuing or would result from the transactions contemplated hereby. (c) The execution, delivery and performance of this Amendment and the other Credit Documents have been duly authorized by all necessary action on the part of each Credit Party that is a party thereto. 5. Existing Term Loan. For clarification purposes, the parties hereto acknowledge that as of the date hereof, the Existing Term Loan (as defined in the Credit Agreement as amended by this Amendment) has been repaid in full. 6. General Terms. (a) This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Amendment and the other Credit Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Amendment shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or .pdf file shall be effective as delivery of a manually executed counterpart of this Amendment. The words “execution,” “signed,” “signature,” and words of like import in this Amendment shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the

 

 

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3 u s e o f a p ap e r - b a s e d r e c o r d k e e p i n g s y s t e m, a s t h e c a s e m a y b e, t o t h e e x t e n t a n d a s p r o v i d e d fo r i n a n y A p p l i c a b l e L a w s, i n c l u d i n g t h e F e d e r a l E l e c t r o n i c S i g n a tu r e s i n G l o b a l a n d N a t i o n a l C o m m e r c e A c t, t h e N e w Yo r k S t a t e E l e c t r o n i c S i g n a tu r e s a n d R e c o r d s A c t, o r a n y o t h e r s i m i l a r s t a t e l a w s b a s e d o n t h e U n i fo r m E l e c t r o n i c Tr a n s a c t i o n s A c t. ( b ) T h e C r e d i t P a r t i e s h e r e b y r a t i fy, c o n fi r m a n d r e a ffi r m a l l o f t h e t e r m s a n d c o n d i t i o n s o f t h e C r e d i t A g r e e m e n t, a n d e a c h o f t h e o t h e r C r e d i t D o c u m e n t s, a n d fu r t h e r a c kn o w l e d g e a n d a g r e e t h a t a l l o f t h e t e r m s a n d c o n d i t i o n s o f t h e C r e d i t A g r e e m e n t s h a l l r e m a i n i n fu l l fo r c e a n d e ffe c t e x c e p t a s e x p r e s s l y p r o v i d e d i n t h i s A m e n d m e n t. ( c ) E x c e p t w h e r e t h e c o n t e x t c l e a r l y r e q u i r e s o t h e r w i s e, a l l r e fe r e n c e s t o t h e C r e d i t A g r e e m e n t i n a n y o t h e r C r e d i t D o c u m e n t s h a l l b e t o t h e C r e d i t A g r e e m e n t a s a m e n d e d b y t h i s A m e n d m e n t. ( d ) T h e e x e c u t i o n, d e l i v e r y a n d e ffe c t i v e n e s s o f t h i s A m e n d m e n t s h a l l n o t, e x c e p t a s e x p r e s s l y p r o v i d e d h e r e i n, o p e r a t e a s a w a i v e r o f a n y r i g h t, p o w e r o r r e m e d y o f a n y L e n d e r o r t h e A d m i n i s t r a t i v e A g e n t u n d e r a n y o f t h e L o a n D o c u m e n t s, n o r c o n s t i tu t e a w a i v e r o f a n y p r o v i s i o n o f a n y o f t h e L o a n D o c u m e n t s. 7. S e v e r a b i l i t y. I n c a s e a n y p r o v i s i o n i n o r o b l i g a t i o n h e r e u n d e r, t h e C r e d i t A g r e e m e n t o r a n y o t h e r C r e d i t D o c u m e n t s h a l l b e i n v a l i d, i l l e g a l o r u n e n fo r c e a b l e i n a n y j u r i s d i c t i o n, t h e v a l i d i t y, l e g a l i t y a n d e n fo r c e a b i l i t y o f t h e r e m a i n i n g p r o v i s i o n s o r o b l i g a t i o n s, o r o f s u c h p r o v i s i o n o r o b l i g a t i o n i n a n y o t h e r j u r i s d i c t i o n, s h a l l n o t i n a n y w a y b e a ffe c t e d o r i m p a i r e d t h e r e b y. 8. G o v e r n i n g L a w. T h i s A m e n d m e n t s h a l l b e g o v e rn e d b y, a n d c o n s t ru e d i n a c c o r d a n c e w i t h, t h e l a w o f t h e S t a t e o f N e w Yo r k. [ S I G N AT U R E S O N F O L L O W I N G PA G E ]

 

 

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[ S i g n a tu r e P a g e t o F i r s t A m e n d m e n t t o T h i r d A m e n d e d a n d R e s t a t e d C r e d i t A g r e e m e n t ] I N W I T N E S S W H E R E O F, t h e p a r t i e s h e r e t o h a v e c a u s e d t h i s A m e n d m e n t t o b e du l y e x e c u t e d a n d d e l i v e r e d a s o f t h e d a t e fi r s t a b o v e w r i t t e n. B O R R O W E R: P H Y S I C I AN S R E A LT Y L.P., a D e l a w a r e l i m i t e d p a r t n e r s h i p B y: P h y s i c i a n s R e a l t y Tru s t, a s G e n e r a l P a r t n e r B y: / s / J o h n T. T h o m a s N a m e: J o h n T. T h o m a s T i t l e: P r e s i d e n t a n d C h i e f E x e c u t i v e O ffi c e r PA R E N T: P H Y S I C I AN S R E A LT Y T RU S T, a M a r y l a n d r e a l e s t a t e i n v e s t m e n t t ru s t B y: / s / J o h n T. T h o m a s N a m e: J o h n T. T h o m a s T i t l e: P r e s i d e n t a n d C h i e f E x e c u t i v e O ffi c e r

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] ADMINISTRATIVE AGENT, ISSUING BANK, SWINGLINE LENDER, and a LENDER: KEYBANK NATIONAL ASSOCIATION By: /s/ Brandon Taseff Name: Brandon Taseff Title: Senior Vice President

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: BMO HARRIS BANK N.A. By: /s/ Lloyd Baron Name: Lloyd Baron Title: Managing Director

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: CITIZENS BANK, N.A. By: /s/ Donald Woods Name: Donald Woods Title: SVP

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: BANK OF AMERICA, N.A. By: /s/ Tyler Morgan Name: Tyler Morgan Title: Vice President

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: RAYMOND JAMES BANK By: /s/ Alexander Sierra Name: Alexander Sierra Title: Vice President

 

 

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[ S i g n a tu r e P a g e t o F i r s t A m e n d m e n t t o T h i r d A m e n d e d a n d R e s t a t e d C r e d i t A g r e e m e n t ] L E N D E R: R O YA L B AN K O F C AN A D A B y: / s / J a k e S i g m u n d N a m e: J a k e S i g m u n d T i t l e: A u t h o r i z e d S i g n a t o r y ___

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: REGIONS BANK By: /s/ Jessica Smith Name: Jessica Smith Title: Managing Director _________

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: TRUIST BANK By: /s/ Tim Conway Name: Tim Conway Title: Vice President_______________________

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK By: /s/ Jill Wong Name: Jill Wong Title: Director By: /s/ Gordon Yip Name: Gordon Yip Title: Director

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: JPMORGAN CHASE BANK, N.A. By: /s/ Brad Olmsted Name: Brad Olmsted Title: Vice President _________

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: MORGAN STANLEY BANK, N.A. By: /s/ Jack Kuhns Name: Jack Kuhns Title: Authorized Signatory

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: MORGAN STANLEY SENIOR FUNDING, INC. By: /s/ Jack Kuhns Name: Jack Kuhns Title: Vice President

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: PNC BANK, NATIONAL ASSOCIATION By: /s/ James A. Harmann Name: James A. Harmann Title: Senior Vice President

 

 

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[ S i g n a tu r e P a g e t o F i r s t A m e n d m e n t t o T h i r d A m e n d e d a n d R e s t a t e d C r e d i t A g r e e m e n t ] L E N D E R: C O M E R I C A B AN K B y: / s / C h a r l e s We d d e l l N a m e: C h a r l e s We d d e l l T i t l e: S e n i o r Vi c e P r e s i d e n t

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: THE HUNTINGTON NATIONAL BANK By: /s/ Michael J. Kinnick Name: Michael J. Kinnick Title: Managing Director

 

 

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[ S i g n a tu r e P a g e t o F i r s t A m e n d m e n t t o T h i r d A m e n d e d a n d R e s t a t e d C r e d i t A g r e e m e n t ] L E N D E R: A S S O C I AT E D B AN K, N AT I O N A L A S S O C I AT I O N B y: / s / M i t c h e l l Ve g a N a m e: M i t c h e l l Ve g a _________ T i t l e: S e n i o r Vi c e P r e s i d e n t

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: SYNOVUS BANK By: /s/ Zachary Braun Name: Zachary Braun Title: Corporate Banker

 

 

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[Signature Page to First Amendment to Third Amended and Restated Credit Agreement] LENDER: CAPITAL ONE, NATIONAL ASSOCIATION By: /s/ Danny Moore Name: Danny Moore Title: Authorized Signatory

 

 

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G U A RAN T O R C O N F I R M AT I O N T h e u n d e r s i g n e d G u a r a n t o r h e r e b y a c k n o w l e d g e s a n d c o n s e n t s t o t h e fo r e g o i n g F i r s t A m e n d m e n t t o T h i r d A m e n d e d a n d R e s t a t e d C r e d i t A g r e e m e n t a n d a c k n o w l e d g e s a n d a g r e e s t h a t i t r e m a i n s o b l i g a t e d fo r t h e v a r i o u s o b l i g a t i o n s a n d l i a b i l i t i e s o f t h e B o r r o w e r t o t h e A d m i n i s t r a t i v e A g e n t a n d t h e L e n d e r s u n d e r t h e C r e d i t A g r e e m e n t a s p r o v i d e d fo r i n, a n d s u bj e c t t o t h e p r o v i s i o n s o f, t h e g u a r a n t y p r o v i d e d b y t h e u n d e r s i g n e d a s s e t fo r t h i n S e c t i o n 4 o f t h e C r e d i t A g r e e m e n t. PA R E N T: P H Y S I C I AN S R E A LT Y T RU S T, a M a r y l a n d r e a l e s t a t e i n v e s t m e n t t ru s t B y: / s / J o h n T. T h o m a s N a m e: J o h n T. T h o m a s T i t l e: P r e s i d e n t a n d C h i e f E x e c u t i v e O ffi c e r

 

 

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ANNEX A Conformed Credit Agreement

 

 

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AN N E X A T O F I R S T A M E N D M E N T T O T H I R D A M E N D E D AN D R E S TAT E D C R E D I T A G R E E M E N T – C O M P O S I T E T H I R D A M E N D E D AN D R E S TAT E D C R E D I T A G R E E M E N T T H I R D A M E N D E D AN D R E S TAT E D C R E D I T A G R E E M E N T d a t e d a s o f S e p t e m b e r 2 4, 2 0 2 1, a s a m e n d e d M a r c h 3 1, 2 0 2 3 a m o n g P H Y S I C I AN S R E A LT Y L.P., a s B o r r o w e r, P H Y S I C I AN S R E A LT Y T RU S T, a s G u a r a n t o r T H E L E N D E R S PA RT Y H E R E T O, K E Y B AN K N AT I O N A L A S S O C I AT I O N, a s A d m i n i s t r a t i v e A g e n t _____________________________________________________ K E Y B AN C C A P I TA L M A R K E T S, I N C., B M O C A P I TA L M A R K E T S, a n d C I T I Z E N S B AN K, N.A. a s L e a d A r r a n g e r s a n d C o - B o o k Ru n n e r s B M O C A P I TA L M A R K E T S AN D C I T I Z E N S B AN K, N.A., a s C o - S y n d i c a t i o n A g e n t s 2 7 7 6 6 9 4.1 4 3 5 2 6 4 9 4.1

 

 

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TA B L E O F C O N T E N T S P a g e S e c t i o n 1 D E F I N I T I O N S AN D I N T E R P R E TAT I O N 1 S e c t i o n 1.1 D e fi n i t i o n s. 1 S e c t i o n 1.2 A c c o u n t i n g Te r m s. 3 8 4 1 S e c t i o n 1.3 Ru l e s o f I n t e rp r e t a t i o n. 3 8 4 2 S e c t i o n 1.4 D i v i s i o n s. 4 0 4 3 S e c t i o n 1.5 R a t e s. 4 3 S e c t i o n 2 L O AN S AN D L E T T E R S O F C R E D I T 4 0 4 4 S e c t i o n 2.1 R e v o l v i n g L o a n s a n d, t h e Te r m L o a n a n d A d d i t i o n a l Te r m L o a n s. 4 0 4 4 S e c t i o n 2.2 S w i n g l i n e L o a n s. 4 1 4 5 S e c t i o n 2.3 I s s u a n c e s o f L e t t e r s o f C r e d i t a n d P u r c h a s e o f P a r t i c i p a t i o n s T h e r e i n. 4 3 4 7 S e c t i o n 2.4 P r o R a t a S h a r e s; Av a i l a b i l i t y o f F u n d s. 4 7 5 1 S e c t i o n 2.5 E v i d e n c e o f D e b t; R e g i s t e r; L e n d e r s’ B o o k s a n d R e c o r d s; N o t e s. 4 8 5 2 S e c t i o n 2.6 S c h e du l e d P r i n c i p a l P a y m e n t s. 4 8 5 3 S e c t i o n 2.7 I n t e r e s t o n L o a n s. 4 9 5 3 S e c t i o n 2.8 C o n v e r s i o n / C o n t i n u a t i o n. 5 1 5 5 S e c t i o n 2.9 D e fa u l t R a t e o f I n t e r e s t. 5 1 5 6 S e c t i o n 2.1 0 F e e s. 5 2 5 7 S e c t i o n 2.1 1 P r e p a y m e n t s / C o m m i t m e n t R e du c t i o n s. 5 3 5 8 S e c t i o n 2.1 2 A p p l i c a t i o n o f P r e p a y m e n t s. 5 5 5 9 S e c t i o n 2.1 3 G e n e r a l P r o v i s i o n s R e g a r d i n g P a y m e n t s. 5 5 6 0 S e c t i o n 2.1 4 S h a r i n g o f P a y m e n t s b y L e n d e r s. 5 6 6 1 S e c t i o n 2.1 5 C a s h C o l l a t e r a l. 5 7 6 2 S e c t i o n 2.1 6 D e fa u l t i n g L e n d e r s. 5 8 6 2 S e c t i o n 2.1 7 R e m o v a l o r R e p l a c e m e n t o f L e n d e r s. 6 0 6 5 S e c t i o n 2.1 8 E x t e n s i o n o f R e v o l v i n g M a tu r i t y D a t e. 6 1 6 6 S e c t i o n 2.1 9 I n c r e a s e i n C o m m i t m e n t s. 6 2 6 7 S e c t i o n 3 Y I E L D P R O T E C T I O N 6 4 6 9 S e c t i o n 3.1 M a k i n g o r M a i n t a i n i n g L I B O R R a t e S O F R L o a n s. 6 4 6 9 S e c t i o n 3.2 I n c r e a s e d C o s t s. 6 6 7 1 S e c t i o n 3.3 Ta x e s. 6 7 7 2 S e c t i o n 3.4 M i t i g a t i o n O b l i g a t i o n s; D e s i g n a t i o n o f a D i ffe r e n t L e n d i n g O ffi c e. 7 1 7 6 S e c t i o n 3.5 P e r m a n e n t I n a b i l i t y t o D e t e r m i n e R a t e; B e n c h m a r k R e p l a c e m e n t S e t t i n g. 7 2 7 7 S e c t i o n 4 G U A RAN T Y 7 6 7 8 S e c t i o n 4.1 T h e G u a r a n t y. 7 6 7 8 S e c t i o n 4.2 O b l i g a t i o n s U n c o n d i t i o n a l. 7 6 7 9 S e c t i o n 4.3 R e i n s t a t e m e n t. 7 7 8 0 S e c t i o n 4.4 C e r t a i n A d d i t i o n a l Wa i v e r s. 7 7 8 0 S e c t i o n 4.5 R e m e d i e s. 7 8 8 0 S e c t i o n 4.6 R i g h t s o f C o n t r i b u t i o n. 7 8 8 1 S e c t i o n 4.7 G u a r a n t e e o f P a y m e n t; C o n t i n u i n g G u a r a n t e e. 7 8 8 1 S e c t i o n 4.8 K e e p w e l l. 7 8 8 1 S e c t i o n 5 C O N D I T I O N S P R E C E D E N T 7 8 8 1 S e c t i o n 5.1 C o n d i t i o n s P r e c e d e n t t o E ffe c t i v e D a t e. 7 8 8 1 i

 

 

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S e c t i o n 5.2 C o n d i t i o n s t o Te r m L o a n a n d E a c h O t h e r C r e d i t E x t e n s i o n. 8 1 8 4 S e c t i o n 6 R E P R E S E N TAT I O N S AN D WA R RAN T I E S 8 2 8 5 S e c t i o n 6.1 O r g a n i z a t i o n; R e q u i s i t e P o w e r a n d A u t h o r i t y; Q u a l i fi c a t i o n. 8 2 8 5 S e c t i o n 6.2 C ap i t a l S t o c k a n d O w n e r s h i p. 8 2 8 5 S e c t i o n 6.3 D u e A u t h o r i z a t i o n. 8 2 8 5 S e c t i o n 6.4 N o C o n fl i c t. 8 2 8 5 S e c t i o n 6.5 G o v e r n m e n t a l C o n s e n t s. 8 3 8 6 S e c t i o n 6.6 B i n d i n g O b l i g a t i o n. 8 3 8 6 S e c t i o n 6.7 F i n a n c i a l S t a t e m e n t s. 8 3 8 6 S e c t i o n 6.8 N o M a t e r i a l A d v e r s e E ffe c t; N o D e fa u l t. 8 4 8 6 S e c t i o n 6.9 Ta x M a t t e r s. 8 4 8 7 S e c t i o n 6.1 0 P r o p e r t i e s. 8 4 8 7 S e c t i o n 6.1 1 E n v i r o n m e n t a l M a t t e r s. 8 4 8 7 S e c t i o n 6.1 2 N o D e fa u l t s. 8 5 8 8 S e c t i o n 6.1 3 N o L i t i g a t i o n o r o t h e r A d v e r s e P r o c e e d i n g s. 8 5 8 8 S e c t i o n 6.1 4 I n fo r m a t i o n R e g a r d i n g t h e B o rr o w e r a n d i t s S ub s i d i a r i e s. 8 5 8 8 S e c t i o n 6.1 5 G o v e r n m e n t a l R e g u l a t i o n. 8 5 8 8 S e c t i o n 6.1 6 E m p l o y e e M a t t e r s. 8 6 8 9 S e c t i o n 6.1 7 P e n s i o n P l a n s. 8 6 8 9 S e c t i o n 6.1 8 S o l v e n c y. 8 7 9 0 S e c t i o n 6.1 9 C o m p l i a n c e w i t h L a w s. 8 7 9 0 S e c t i o n 6.2 0 D i s c l o s u r e. 8 7 9 0 S e c t i o n 6.2 1 I n s u r a n c e; N o C a s u a l t y o r C o n d e m n a t i o n. 8 7 9 0 S e c t i o n 6.2 2 H e a l t h c a r e F a c i l i t y R e p r e s e n t a t i o n s a n d Wa r r a n t i e s. 8 8 9 1 S e c t i o n 6.2 3 R E I T S t a tu s. 8 9 9 2 S e c t i o n 6.2 4 U n e n c u m b e r e d P r o p e r t i e s. 8 9 9 2 S e c t i o n 7 A F F I R M AT I V E C O V E N AN T S 8 9 9 2 S e c t i o n 7.1 F i n a n c i a l S t a t e m e n t s a n d O t h e r R e p o r t s. 8 9 9 2 S e c t i o n 7.2 E x i s t e n c e. 9 2 9 4 S e c t i o n 7.3 P a y m e n t o f Ta x e s a n d C l a i m s. 9 2 9 5 S e c t i o n 7.4 M a i n t e n a n c e o f P r o p e r t i e s. 9 2 9 5 S e c t i o n 7.5 I n s u r a n c e. 9 2 9 5 S e c t i o n 7.6 I n s p e c t i o n s. 9 2 9 5 S e c t i o n 7.7 L e n d e r s M e e t i n g s. 9 2 9 5 S e c t i o n 7.8 C o m p l i a n c e w i t h L a w s a n d M a t e r i a l C o n t r a c t s. 9 3 9 5 S e c t i o n 7.9 U s e o f P r o c e e d s. 9 3 9 6 S e c t i o n 7.1 0 E n v i r o n m e n t a l M a t t e r s. 9 3 9 6 S e c t i o n 7.1 1 B o o k s a n d R e c o r d s. 9 3 9 6 S e c t i o n 7.1 2 A d d i t i o n a l S u b s i d i a r i e s. 9 3 9 6 S e c t i o n 7.1 3 U n e n c u m b e r e d P r o p e r t i e s S u bj e c t t o E l i g i b l e G r o u n d L e a s e s. 9 4 9 7 S e c t i o n 7.1 4 R e l e a s e o f G u a r a n t o r s. 9 5 9 8 S e c t i o n 7.1 5 O t h e r S e l l e r G u a r a n t e e s. 9 6 9 9 S e c t i o n 7.1 6 R E I T S t a tu s. 9 6 9 9 S e c t i o n 7.1 7 E l e c t r o n i c D e l i v e r y o f C e r t a i n I n fo r m a t i o n. 9 6 9 9 S e c t i o n 8 N E G AT I V E C O V E N AN T S 9 7 1 0 0 S e c t i o n 8.1 I n d e b t e d n e s s. 9 7 1 0 0 S e c t i o n 8.2 L i e n s. 9 9 1 0 1 S e c t i o n 8.3 N o F u r t h e r N e g a t i v e P l e d g e s. 1 0 0 1 0 3 i i

 

 

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S e c t i o n 8.4 R e s t r i c t e d P a y m e n t s. 1 0 1 1 0 4 S e c t i o n 8.5 B u r d e n s o m e A g r e e m e n t s. 1 0 1 1 0 4 S e c t i o n 8.6 I n v e s t m e n t s. 1 0 1 1 0 4 S e c t i o n 8.7 U s e o f P r o c e e d s. 1 0 3 1 0 5 S e c t i o n 8.8 F i n a n c i a l C o v e n a n t s. 1 0 3 1 0 5 S e c t i o n 8.9 C ap i t a l E x p e n d i tu r e s. 1 0 4 1 0 7 S e c t i o n 8.1 0 F u n d a m e n t a l C h a n g e s; D i s p o s i t i o n o f A s s e t s; A c q u i s i t i o n s. 1 0 4 1 0 7 S e c t i o n 8.1 1 D i s p o s a l o f S ub s i d i a ry I n t e r e s t s. 1 0 4 1 0 7 S e c t i o n 8.1 2 Tr a n s a c t i o n s w i t h A ffi l i a t e s a n d I n s i d e r s. 1 0 5 1 0 7 S e c t i o n 8.1 3 P r e p a y m e n t o f O t h e r F u n d e d D e b t. 1 0 5 1 0 8 S e c t i o n 8.1 4 C o n du c t o f B u s i n e s s. 1 0 5 1 0 8 S e c t i o n 8.1 5 F i s c a l Ye a r. 1 0 5 1 0 8 S e c t i o n 8.1 6 A m e n d m e n t s t o O r g a n i z a t i o n a l A g r e e m e n t s / M a t e r i a l A g r e e m e n t s. 1 0 5 1 0 8 S e c t i o n 9 E V E N T S O F D E FA U LT; R E M E D I E S; A P P L I C AT I O N O F F UN D S. 1 0 5 1 0 8 S e c t i o n 9.1 E v e n t s o f D e fa u l t. 1 0 5 1 0 8 S e c t i o n 9.2 R e m e d i e s. 1 0 8 1 1 1 S e c t i o n 9.3 A p p l i c a t i o n o f F u n d s. 1 0 8 1 1 1 S e c t i o n 1 0 A G E N C Y 1 0 9 1 1 2 S e c t i o n 1 0.1 A p p o i n t m e n t a n d A u t h o r i t y. 1 0 9 1 1 2 S e c t i o n 1 0.2 R i g h t s a s a L e n d e r. 1 1 0 1 1 3 S e c t i o n 1 0.3 E x c u l p a t o r y P r o v i s i o n s. 1 1 0 1 1 3 S e c t i o n 1 0.4 R e l i a n c e b y A d m i n i s t r a t i v e A g e n t. 1 1 1 1 1 4 S e c t i o n 1 0.5 D e l e g a t i o n o f D u t i e s. 1 1 1 1 1 4 S e c t i o n 1 0.6 R e s i g n a t i o n o f A d m i n i s t r a t i v e A g e n t. 1 1 1 1 1 4 S e c t i o n 1 0.7 N o n - R e l i a n c e o n A d m i n i s t r a t i v e A g e n t a n d O t h e r L e n d e r s. 1 1 2 1 1 5 S e c t i o n 1 0.8 N o O t h e r D u t i e s, e t c. 1 1 3 1 1 5 S e c t i o n 1 0.9 A d m i n i s t r a t i v e A g e n t M a y F i l e P r o o fs o f C l a i m. 1 1 3 1 1 6 S e c t i o n 1 0.1 0 S e c u r i t y M a t t e r s. 1 1 3 1 1 6 S e c t i o n 1 0.1 1 E r r o n e o u s P a y m e n t s. 1 1 4 1 1 7 S e c t i o n 1 1 M I S C E L L AN E O U S 1 1 6 1 1 9 S e c t i o n 1 1.1 N o t i c e s; E ffe c t i v e n e s s; E l e c t r o n i c C o m m u n i c a t i o n s. 1 1 6 1 1 9 S e c t i o n 1 1.2 E x p e n s e s; I n d e m n i t y; D a m a g e Wa i v e r. 1 1 7 1 2 0 S e c t i o n 1 1.3 S e t - O ff. 1 1 9 1 2 2 S e c t i o n 1 1.4 A m e n d m e n t s a n d Wa i v e r s. 1 2 0 1 2 2 S e c t i o n 1 1.5 S u c c e s s o r s a n d A s s i g n s. 1 2 2 1 2 5 S e c t i o n 1 1.6 I n d e p e n d e n c e o f C o v e n a n t s. 1 2 6 1 2 9 S e c t i o n 1 1.7 S u r v i v a l o f R e p r e s e n t a t i o n s, Wa r r a n t i e s a n d A g r e e m e n t s. 1 2 6 1 2 9 S e c t i o n 1 1.8 N o Wa i v e r; R e m e d i e s C u m u l a t i v e. 1 2 6 1 2 9 S e c t i o n 1 1.9 M a r s h a l l i n g; Payments Set Aside. 126129 Section 11.10 Severability. 127129 Section 11.11 Obligations Several; Independent Nature of Lenders’ Rights. 127129 Section 11.12 Headings. 127130 Section 11.13 Applicable Laws. 127130 Section 11.14 WAIVER OF JURY TRIAL. 127130 Section 11.15 Confidentiality. 128131 Section 11.16 Usury Savings Clause. 128131 Section 11.17 Counterparts; Integration; Effectiveness. 129132 Section 11.18 No Advisory of Fiduciary Relationship. 129132 iii

 

 

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Section 11.19 Electronic Execution of Assignments and Other Documents. 130133 Section 11.20 USA PATRIOT Act. 130133 Section 11.21 Acknowledgement and Consent to Bail-In of Affected Financial Institutions. 130133 Section 11.22 Existing Agreement. 131133 Section 11.23 Acknowledgement Regarding Any Supported QFCs. 131134 iv

 

 

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

 

 

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THIRD AMENDED AND RESTATED CREDIT AGREEMENT This THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of September 24, 2021, as amended _______, 2023 (as amended, restated, increased, extended, supplemented or otherwise modified from time to time, this “Agreement”), is entered into by and among PHYSICIANS REALTY L.P., a Delaware limited partnership (the “Borrower”), PHYSICIANS REALTY TRUST, a Maryland real estate investment trust (the “Parent”), as Guarantor, the Lenders from time to time party hereto, and KEYBANK NATIONAL ASSOCIATION, as administrative agent (in such capacity, “Administrative Agent”). RECITALS: WHEREAS, certain lenders have made available to the Borrower a revolving credit facility and a term loan facility pursuant to the terms of that certain Second Amended and Restated Credit Agreement dated as of August 7, 2018 (as amended and in effect on the date hereof, the “Existing Agreement”); and WHEREAS, the Borrower has requested, and the Administrative Agent and the Lenders have agreed, to amend and restate, in full, the Existing Agreement in accordance with the terms and conditions contained herein. NOW, THEREFORE, in consideration of these premises and the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree that the Existing Agreement is hereby amended and restated to read as follows: DEFINITIONS AND INTERPRETATIONSection 1 Definitions. The following terms used herein, including in the introductorySection 1.1 paragraph, recitals, exhibits and schedules hereto, shall have the following meanings: “Acquisition”, by any Person, means the acquisition by such Person, in a single transaction or in a series of related transactions, of all or any substantial portion of the assets of another Person or at least a majority of the Capital Stock of another Person, in each case whether or not involving a merger or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise. “Additional Term Commitment” means as defined in Section 2.19. “Additional Term Loan” means a term loan made by a Lender to the Borrower pursuant to a New Term Loan Amendment entered into in connection with an increase of the Total Facility Amount under Section 2.19. “Additional Term Note” means a promissory note in the form attached to the applicable New Term Loan Amendment, as such promissory note may be amended, supplemented or otherwise modified from time to time. “Adjusted Daily Simple SOFR” means with respect to a Daily Simple SOFR Loan, the greater of (1) the sum of (a) Daily Simple SOFR and (b) the SOFR Index Adjustment and (2) the Floor. “Adjusted EBITDA” means, for any period, the sum of (a) EBITDA of the Consolidated Parties for the immediately preceding four-Fiscal Quarter period most recently ended plus (b) non-recurring 1

 

 

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charges not otherwise added back in the calculation of EBITDA of the Consolidated Parties for the purposes hereof under the definition of “EBITDA”, including acquisition expenses less (c) the Capital Reserves for such period. “Adjusted Term SOFR” means for any Available Tenor and Interest Period with respect to a SOFR Loan, the greater of (1) sum of (a) Term SOFR for such Interest Period and (b) the SOFR Index Adjustment and (2) the Floor. “Administrative Agent” means as defined in the introductory paragraph hereto, together with its successors and permitted assigns. “Administrative Questionnaire” means an administrative questionnaire provided by the Lenders in a form supplied by the Administrative Agent. “Adverse Proceeding” means any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit Party or any of its Subsidiaries) at law or in equity, or before or by any Governmental Authority, whether pending, threatened in writing against any Credit Party or any of its Subsidiaries or any material property of any Credit Party or any of its Subsidiaries. “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution. “Affected Lender” means as defined in Section 3.1(b). “Affected Loans” means as defined in Section 3.1(b). “Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. “Agent” means the Administrative Agent. “Agreement” means as defined in the introductory paragraph hereto. “Aggregate Revolving Commitments” means the Revolving Commitments of all the Lenders. The aggregate principal amount of the Aggregate Revolving Commitments in effect on the Effective Date is ONE BILLION AND 0/100 DOLLARS ($1,000,000,000.00). “Anti-Corruption Laws” means all Applicable Laws of any jurisdiction applicable to the Credit Parties concerning or relating to bribery or corruption, including without limitation, the Foreign Corrupt Practices Act of 1977. “Anti-Money Laundering Laws” means all Applicable Laws related to the financing of terrorism or money laundering, including without limitation, any applicable provision of the Patriot Act and The Currency and Foreign Transactions Reporting Act (also known as the “Bank Secrecy Act,” 31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959). “Applicable Laws” means, as to any Person, all laws, including all applicable provisions of constitutions, statutes, rules, ordinances, regulations and orders of all Governmental Authorities and all orders, rulings, writs and decrees of all courts, tribunals and arbitrators, in each case, applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 2

 

 

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“Applicable Lending Office” means, with respect to each Lender, the office designated by such Lender to the Administrative Agent as such Lender’s lending office for all purposes of this Agreement. A Lender may have a different Applicable Lending Office for Base Rate Loans and SOFR Loans. “Applicable Margin” means the percentage per annum determined, at any time, based on the range into which the Borrower’s Credit Rating then falls, in accordance with the levels in the table set forth below (the “Investment Grade Pricing Grid”). During any period for which the Borrower has received three Investment Grade Ratings which are not equivalent, such Applicable Margin will be determined by (a) the highest Investment Grade Rating if they differ by only one Level and (b) the average of the two highest Investment Grade Ratings if they differ by two or more Levels (unless the average is not a recognized Level, in which case the Applicable Margin will be based on the Level corresponding to the second highest Investment Grade Rating). During any period for which the Borrower has received only two Investment Grade Ratings and such Investment Grade Ratings are not equivalent, the Applicable Margin will be determined by (i) the highest Investment Grade Rating if they differ by only one Level and (ii) the median of the two Investment Grade Ratings if they differ by two or more Levels (unless the median is not a recognized Level, in which case the Applicable Margin will be based on the Investment Grade Rating one Level below the Level corresponding to the higher Investment Grade Rating). All of the foregoing shall be determined solely but reasonably by Administrative Agent from time to time. During any period for which the Borrower has received an Investment Grade Rating from only one Rating Agency, the Applicable Margin shall be determined based on such Investment Grade Rating so long as such Credit Rating is from either S&P or Moody’s. If the Borrower ceases to maintain Investment Grade Rating from either S&P or Moody’s, then from and after such time the Applicable Margin shall be determined with reference to Level V below, with any increase or decrease in the Applicable Margin resulting from such change becoming effective on the date one (1) Business Day immediately following the date on which Borrower ceases to maintain such Investment Grade Rating. Investment Grade Pricing Grid Pricing Level Credit Rating Applicable Margin for Revolving Loans that are Base Rate Loans Facility Fee Rate Applicable Margin for Revolving Loans that are LIBOR RateSOFR Loans and Letter of Credit Fee Applicable Margin for Term Loans that are Base Rate Loans Applicable Margin for Term Loans that are LIBOR RateSOFR Loans I At Least A-or A3 0.00% 0.125% 0.725% 0.00% 0.85% II At Least BBB+ or BAA1 0.00% 0.15% 0.775% 0.00% 0.90% III At Least BBB or BAA2 0.00% 0.20% 0.85% 0.00% 1.00% IV At Least BBB-or BAA3 0.05% 0.25% 1.05% 0.25% 1.25% V Below BBB-an d BAA3 0.40% 0.30% 1.40% 0.65% 1.65% 3

 

 

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During any applicable Sustainability Adjustment Period, the Applicable Margin set forth in the above table for Revolving Loans shall be decreased by the Applicable Sustainability Adjustment (if any) in effect during such Sustainability Adjustment Period; provided that in no event shall the Applicable Margin be less than zero. The Applicable Margin for any Additional Term Loans that are Base Rate Loans and/or SOFR Loans shall be as set forth in the applicable New Term Loan Amendment. “Applicable Reserve Requirement” means, at any time, for any LIBOR Rate Loan, the maximum rate, expressed as a decimal, at which reserves (including any basic marginal, special, supplemental, emergency or other reserves) are required to be maintained with respect thereto against “Eurocurrency liabilities” (as such term is defined in Regulation D of the FRB, as in effect from time to time) under regulations issued from time to time by the FRB or other applicable banking regulator. Without limiting the effect of the foregoing, the Applicable Reserve Requirement shall reflect any other reserves required to be maintained by such member banks with respect to (i) any category of liabilities which includes deposits by reference to which the applicable LIBOR Rate or any other interest rate of a Loan is to be determined, or (ii) any category of extensions of credit or other assets which include LIBOR Rate Loans. An LIBOR Rate Loan shall be deemed to constitute Eurocurrency liabilities and as such shall be deemed subject to reserve requirements. The rate of interest on LIBOR Rate Loans shall be adjusted automatically on and as of the effective date of any change in the Applicable Reserve Requirement. “Applicable Sustainability Adjustment” means, for any Sustainability Adjustment Period (beginning with the Sustainability Adjustment Period commencing in the fiscal year immediately following the first year when the Borrower receives its Sustainability Rating (such first year being referred to as the "First Rated Year")), determined by reference to the Sustainability Rating Change or Sustainability Rating, as applicable, reported in the Compliance Certificate delivered by the Borrower pursuant to Section 7.1(c) for the immediately preceding fiscal year (a “Reference Year”): (a) if (i) the Sustainability Rating Change for such Reference Year shall be equal to or greater than five percent (5.0%) or (ii) the Sustainability Rating for such Reference Year shall be equal to or greater than 96, the Applicable Sustainability Adjustment for such Sustainability Adjustment Period shall be a one basis point reduction in the Applicable Margin set forth in the Investment Grade Pricing Grid; and (b) if (i) the Sustainability Rating Change for such Reference Year shall be less than five percent (5.0%) or (ii) the Borrower shall have elected in its sole discretion to not report a Sustainability Rating Adjustment in the applicable Compliance Certificate, the Applicable Sustainability Adjustment for such Sustainability Adjustment Period shall be zero and there shall be no Applicable Sustainability Adjustment to the Applicable Margin set forth in the Investment Grade Pricing Grid; provided that this clause (b) shall not apply if the Sustainability Rating Change for such Reference Year cannot be determined due to the occurrence of any event described in clause (A), (B) or (C) of clause (i) of the following proviso; provided, that, notwithstanding the foregoing, if (A) GRESB fails or is no longer able to issue a Sustainability Rating, or(i) otherwise delays the issuance of a Sustainability Rating without the consent of the Borrower, (B) GRESB notifies the Borrower, or makes an announcement to the effect, that it will no longer issue a Sustainability Rating, or (C) the scoring methodologies or other basis upon which the Sustainability Rating is determined shall materially change from the methodologies and basis for the determination of the Sustainability Rating in effect for the First Rated Year, then in any such case, 4

 

 

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(x) the Borrower or Administrative Agent (acting on the instructions of the Required Lenders) may request that negotiations be entered into between the Borrower and the Sustainable Agent (for a period of no more than thirty (30) consecutive days, or such longer period as may be mutually agreed by the Borrower and Administrative Agent (with the consent of the Required Lenders)) with a view to agreeing on a substitute basis for determining a Sustainability Rating; (y) during any such negotiation period, the Applicable Sustainability Adjustment with respect to the applicable Sustainability Adjustment Period shall be determined pursuant to clause (a) or (b) of this definition above, based on the Sustainability Rating Change or Sustainability Rating, as applicable, that was in effect and applied immediately prior to the date on which such negotiation period commenced; (z) if no agreement can be reached between the Borrower and the Sustainable Agent during such negotiation period, unless otherwise agreed by the Borrower and the Required Lenders, the Applicable Sustainability Adjustment shall be determined pursuant to clause (b) of this definition above and shall apply to the Applicable Margin from and after the last day of such negotiation period; until the delivery of the Compliance Certificate delivered in respect of the First(ii) Rated Year, pursuant to Section 7.1(c), the Applicable Sustainability Adjustment shall be zero and there shall be no Applicable Sustainability Adjustment to the Applicable Margin set forth in the Investment Grade Pricing Grid; and the Borrower may elect to deliver to Administrative Agent a revised Compliance(iii) Certificate for any Reference Year reflecting a revised Sustainability Rating Change or Sustainability Rating, as applicable, and commencing on the Business Day immediately following the date of delivery of such revised Compliance Certificate through the end of such Sustainability Adjustment Period, such revised Sustainability Rating Change or Sustainability Rating as applicable, shall apply. “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. “Asset Sale” means a sale, lease, sale and leaseback, assignment, conveyance, exclusive license (as licensor), transfer or other disposition to, or any exchange of property with, any Person, in one transaction or a series of transactions, of all or any part of any Credit Party or any of its Subsidiaries’ businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, created, leased or licensed, including the Capital Stock of any Subsidiary of the Borrower, other than (a) dispositions of surplus, obsolete or worn out property or property no longer used or useful in the business of the Borrower and its Subsidiaries, whether now owned or hereafter acquired, in the ordinary course of business; (b) dispositions of inventory sold, and Intellectual Property licensed or sublicensed, in the ordinary course of business; (c) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the compromise or settlement thereof in the ordinary course of business for less than the full amount thereof; (d) dispositions of Cash Equivalents in the ordinary course of business; (e) licenses, sublicenses, leases or subleases granted to any third parties in arm’s-length commercial transactions in the ordinary course of business that do not interfere in any material respect with the business of the Borrower or any of its Subsidiaries; (f) dispositions of property or assets to the extent that (i) such property or assets are exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such dispositions of property or assets are promptly applied to the purchase price of such replacement 5

 

 

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property; (g) dispositions in the ordinary course of business consisting of the abandonment or cancellation of any Intellectual Property which, in the reasonable good faith determination of the Borrower is not material to the conduct of the business of the Borrower and its Subsidiaries, taken as a whole; and (h) transfers of property or assets subject to casualty, condemnation or similar event upon receipt of the insurance or condemnation proceeds thereof. “Assignment Agreement” means an assignment agreement entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.5(b)) and accepted by the Administrative Agent, in substantially the form of Exhibit 11.5 or any other form approved by the Administrative Agent. “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Off-Balance Sheet Obligation, the capitalized amount of the remaining lease or similar payments under the relevant lease or agreement that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or agreement were accounted for as a Capital Lease, (c) in the case of Securitization Transactions, the outstanding principal amount of such financing, after taking into account reserve amounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment and (d) in the case of Sale and Leaseback Transactions, the present value (discounted in accordance with GAAP at the debt rate implied in the applicable lease) of the obligations of the lessee for rental payments during the term of such lease. “Authorized Officer” means, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president or one of its vice presidents (or the equivalent thereof), chief financial officer, treasurer or assistant treasurer of such Person or its Controlling or parent entity and, solely for purposes of making the certifications required under Section 5.1(b)(ii) and (v), any secretary or assistant secretary. “Available Commitment” shall mean, as to any Lender at any time, an amount equal to the excess, if any, of (a) the amount of such Lender’s Revolving Commitment over (b) the aggregate outstanding principal amount of all Revolving Credit Exposure of such Lender as of such date. “Available Tenor” means as defined in Section 3.5(f). “Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement, or (y) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 3.5(d). “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution. “Bail-In Legislation” means, (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, 6

 

 

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Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings). “Bankruptcy Code” means Title 11, U.S.C.A., as amended from time to time or any successor statute thereto. “Bankruptcy Event” means, with respect to any Person, the occurrence of any of the following: (a) the entry of a decree or order for relief by a court or governmental agency in an involuntary case under any applicable Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in effect, or the appointment by a court or governmental agency of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its Property or the ordering of the winding up or liquidation of its affairs by a court or governmental agency and such decree, order or appointment is not vacated or discharged within sixty (60) days of its filing; or (b) the commencement against such Person of an involuntary case under any applicable Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in effect, or of any case, proceeding or other action for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its property or for the winding up or liquidation of its affairs, and such involuntary case or other case, proceeding or other action shall remain undismissed for a period of sixty (60) consecutive days, or the repossession or seizure by a creditor of such Person of a substantial part of its property; or (c) such Person shall commence a voluntary case under any applicable Debtor Relief Law or any other bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment of or the taking possession by a receiver, liquidator, assignee, creditor in possession, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its property or make any general assignment for the benefit of creditors; or (d) the filing of a petition by such Person seeking to take advantage of any Debtor Relief Law or any other applicable Law, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up, or composition or adjustment of debts, or (e) such Person shall fail to contest in a timely and appropriate manner (and if not dismissed within sixty (60) days) or shall consent to any petition filed against it in an involuntary case under such bankruptcy laws or other applicable Law or consent to any proceeding or action relating to any bankruptcy, insolvency, reorganization, winding up, or composition or adjustment of debts with respect to its assets or existence, or (f) such Person shall admit in writing an inability to pay its debts generally as they become due. “Base Rate” means, for any day, a rate per annum equal to the greatesthighest of (i) the Prime Rate in effect on such day, (ii) the Federal Funds Effective Rate in effect on such day plus ½ of one percent (0.50%) and, (iii) the LIBOR RateTerm SOFR for a one month tenor in effect on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus one percent (1.0%)1.00%, and (iv) the Floor. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the LIBOR RateTerm SOFR shall be effective onfrom and including the effective daydate of such change in the Prime Rate, the Federal Funds Effective Rate or the LIBOR RateTerm SOFR, respectively. “Base Rate Loan” means a Loan bearing interest at a rate determined by reference to the Base Rate. “Benchmark” means as defined in Section 3.5(f). “Benchmark Replacement” means as defined in Section 3.5(f). 7

 

 

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“Benchmark Replacement Conforming Changes” means as defined in Section 3.5(f). “Benchmark Transition Event” means as defined in Section 3.5(f). “Benchmark” means, initially, with respect to (a) any Daily Simple SOFR Loan, Daily Simple SOFR, and (b) any Term SOFR Loan, Term SOFR; provided that if a Benchmark Transition Event has occurred with respect to the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 3.5. “Benchmark Replacement” means, with respect to any Benchmark Transition Event for the then-current Benchmark, the sum of: (i) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for such Benchmark giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for such Benchmark for syndicated credit facilities denominated in U.S. Dollars at such time and (ii) the related Benchmark Replacement Adjustment, if any; provided that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents. “Benchmark Replacement Adjustment” means, with respect to any replacement of any then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Available Tenor, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), if any, that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. Dollar denominated syndicated credit facilities. “Benchmark Replacement Date” means the earlier to occur of the following events with respect to the then-current Benchmark: (a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event”, the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof); or (b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or the published component used in the calculation thereof) has been or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) have been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date. 8

 

 

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For the avoidance of doubt, if such Benchmark is a term rate, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof). “Benchmark Transition Event” means, with respect to the then-current Benchmark, the occurrence of one or more of the following events with respect to such Benchmark: (a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof); (b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the FRB, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof); or (c) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component used in the calculation thereof) announcing that such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative. For the avoidance of doubt, if such Benchmark is a term rate, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof). “Benchmark Transition Start Date” means, with respect to any Benchmark, in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication). “Benchmark Unavailability Period” means, with respect to any then-current Benchmark, the period (if any) (i) beginning at the time that a Benchmark Replacement Date with respect to such Benchmark pursuant to clauses (a) or (b) of that definition has occurred if, at such time, no Benchmark 9

 

 

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R e p l a c e m e n t h a s r e p l a c e d s u c h B e n c h m a r k fo r a l l p u rp o s e s h e r e u n d e r a n d u n d e r a n y L o a n D o c u m e n t i n a c c o r d a n c e w i t h S e c t i o n 3.5 a n d ( i i ) e n d i n g a t t h e t i m e t h a t a B e n c h m a r k R e p l a c e m e n t h a s r e p l a c e d s u c h B e n c h m a r k fo r a l l p u rp o s e s h e r e u n d e r a n d u n d e r a n y L o a n D o c u m e n t i n a c c o r d a n c e w i t h S e c t i o n 3.5. “ B e n e fi c i a l O w n e r s h i p C e r t i fi c a t i o n ” m e a n s a c e r t i fi c a t i o n r e g a r d i n g b e n e fi c i a l o w n e r s h i p r e q u i r e d b y t h e B e n e fi c i a l O w n e r s h i p R e g u l a t i o n, w h i c h c e r t i fi c a t i o n s h a l l b e s u b s t a n t i a l l y s i m i l a r i n fo r m a n d s u b s t a n c e t o t h e fo r m o f C e r t i fi c a t i o n R e g a r d i n g B e n e fi c i a l O w n e r s o f L e g a l E n t i t y C u s t o m e r s p ub l i s h e d j o i n t l y, i n M a y 2 0 1 8, b y t h e L o a n S y n d i c a t i o n s a n d Tr a d i n g A s s o c i a t i o n a n d S e c u r i t i e s I n du s t ry a n d F i n a n c i a l M a r k e t s A s s o c i a t i o n. “ B e n e fi c i a l O w n e r s h i p R e g u l a t i o n ” s h a l l m e a n 3 1 C.F.R. § 1 0 1 0.2 3 0. “ B H C A c t A ffi l i a t e ” m e a n s a s d e fi n e d i n S e c t i o n 1 1.2 3 ( b ). “ B o r r o w e r ” m e a n s a s p r o v i d e d i n t h e i n t r o du c t o r y p a r a g r ap h t o t h i s A g r e e m e n t. “ B o r r o w i n g ” m e a n s ( a ) a b o r r o w i n g c o n s i s t i n g o f s i m u l t a n e o u s L o a n s o f t h e s a m e Ty p e o f L o a n a n d, i n t h e c a s e o f L I B O R R a t e Te r m S O F R L o a n s, h a v i n g t h e s a m e I n t e r e s t P e r i o d, o r ( b ) a b o r r o w i n g o f S w i n g l i n e L o a n s, a s ap p r o p r i a t e. “ B u s i n e s s D a y ” m e a n s ( i ) a n y d a y e x c l u d i n g o t h e r t h a n S a tu r d a y, S u n d a y a n d o r a n y d a y w h i c h i s a l e g a l h o l i d a y u n d e r t h e l a w s o f t h e S t a t e o f N e w Yo r k o r i s a d a y o n w h i c h b a n k i n g i n s t i tu t i o n s l o c a t e d i n s u c h s t a t e o t h e r d a y o n w h i c h c o m m e r c i a l b a n k s i n C l e v e l a n d, O h i o o r N e w Yo r k, N e w Yo r k a r e a u t h o r i z e d o r r e q u i r e d b y l a w o r o t h e r g o v e r n m e n t a l a c t i o n t o c l o s e, a n d ( i i ) w i t h r e s p e c t t o a l l n o t i c e s, d e t e r m i n a t i o n s, fu n d i n g s a n d p a y m e n t s i n c o n n e c t i o n w i t h t h e L I B O R R a t e o r a n y L I B O R R a t e L o a n s ( a n d i n t h e c a s e o f d e t e r m i n a t i o n s, t h e L I B O R R a t e ), t h e t e r m “ B u s i n e s s D a y ” m e a n s a n y d a y w h i c h i s a B u s i n e s s D a y d e s c r i b e d i n c l a u s e ( i ) a n d w h i c h i s a l s o a d a y fo r t r a d i n g b y a n d b e t w e e n b a n k s i n D o l l a r d e p o s i t s i n t h e L o n d o n i n t e rb a n k m a r k e t; p r o v i d e d t h a t, w h e n u s e d i n c o n n e c t i o n w i t h S O F R, t h e c o m p o n e n t o f t h e B a s e R a t e b a s e d up o n S O F R o r a n y o t h e r c a l c u l a t i o n o r d e t e r m i n a t i o n i n v o l v i n g S O F R, t h e t e r m “ B u s i n e s s D a y ” m e a n s a n y s u c h d a y t h a t i s a l s o a U.S. G o v e r n m e n t S e c u r i t i e s a n y m a t t e r s r e l a t i n g t o S O F R L o a n s, a S O F R B u s i n e s s D a y. “ C a l c u l a t i o n P e r i o d ” m e a n s t h e t r a i l i n g t w e l v e ( 1 2 ) m o n t h c a l c u l a t i o n p e r i o d e n d i n g o n a n y d a t e o f d e t e r m i n a t i o n. “ C ap i t a l L e a s e ” m e a n s, a s ap p l i e d t o a n y P e r s o n, a n y l e a s e o f a n y p r o p e r t y ( w h e t h e r r e a l, p e r s o n a l o r m i x e d ) b y t h a t P e r s o n a s l e s s e e t h a t, i n c o n fo r m i t y w i t h G A A P, i s o r s h o u l d b e a c c o u n t e d fo r a s a c ap i t a l l e a s e o n t h e b a l a n c e s h e e t o f t h a t P e r s o n. “ C ap i t a l R e s e r v e s ” m e a n s a c ap i t a l r e s e r v e p e r a n n u m c a l c u l a t e d a s t h e s u m o f $ 0.5 0 p e r s q u a r e fo o t t i m e s t h e g r o s s l e a s a b l e a r e a fo r e a c h R e a l E s t a t e A s s e t o w n e d b y a C o n s o l i d a t e d P a r t y o r a n U n c o n s o l i d a t e d A ffi l i a t e. “ C ap i t a l S t o c k ” m e a n s ( a ) i n t h e c a s e o f a c o rp o r a t i o n, c ap i t a l s t o c k, ( b ) i n t h e c a s e o f a n a s s o c i a t i o n o r b u s i n e s s e n t i t y, a n y a n d a l l s h a r e s, i n t e r e s t s, p a r t i c i p a t i o n s, r i g h t s o r o t h e r e q u i v a l e n t s ( h o w e v e r d e s i g n a t e d ) o f c ap i t a l s t o c k, ( c ) i n t h e c a s e o f a p a r t n e r s h i p, p a r t n e r s h i p i n t e r e s t s ( w h e t h e r g e n e r a l o r l i m i t e d ), ( d ) i n t h e c a s e o f a l i m i t e d l i a b i l i t y c o m p a n y, m e m b e r s h i p i n t e r e s t s a n d ( e ) a n y o t h e r i n t e r e s t o r p a r t i c i p a t i o n t h a t c o n fe r s o n a P e r s o n t h e r i g h t t o r e c e i v e a s h a r e o f t h e p r o fi t s a n d l o s s e s o f, o r d i s t r i b u t i o n s o f a s s e t s o f, t h e i s s u i n g P e r s o n. 1 0

 

 

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“Capitalized Lease Obligation” means an obligation under a lease of any property (whether real, personal or mixed) that is required to be capitalized for financial reporting purposes in accordance with GAAP. The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation as would be required to be reflected on a balance sheet prepared in accordance with GAAP as of the applicable date. “Cash Collateralize” means, to pledge and deposit with or deliver to the Administrative Agent, the Issuing Bank or the Swingline Lender, as applicable, as collateral for the Letter of Credit Obligations or Swingline Loans, as applicable, or obligations of Lenders to fund participations in respect thereof, cash or deposit account balances or, if the Administrative Agent, the Issuing Bank or Swingline Lender, as applicable, may agree in their sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, the Issuing Bank and/or Swingline Lender, as applicable. “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support. “Cash Equivalents” means, as at any date of determination, any of the following: (a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States government, or (ii) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing within one (1) year after such date; (b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one (1) year after such date and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (c) commercial paper maturing no more than one (1) year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (d) certificates of deposit or bankers’ acceptances maturing within one (1) year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States or any state thereof or the District of Columbia that (i) is at least “adequately capitalized” (as defined in the regulations of its primary federal banking regulator), and (ii) has Tier 1 capital (as defined in such regulations) of not less than $100,000,000; and (e) shares of any money market mutual fund that (i) has substantially all of its assets invested continuously in the types of investments referred to in clauses (a) and (b) above, (ii) has net assets of not less than $500,000,000, and (iii) has the highest rating obtainable from either S&P or Moody’s. “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued. “Change of Control” means an event or series of events by which: (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 11

 

 

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13d-5 under the Exchange Act of 1934), directly or indirectly, of thirty-five percent (35)% or more of the Capital Stock of the Parent entitled to vote for members of the board of directors or equivalent governing body of the Parent on a fully diluted basis; or (b) during any period of twenty-four (24) consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Parent cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; or (c) the Parent ceases to own, directly or indirectly, sixty percent (60.0%) of the limited partnership interests in the Borrower. “CME” means CME Group Benchmark Administration Ltd. “CMS” means the Centers for Medicare & Medicaid Services, the federal agency responsible for administering the Medicare, Medicaid, SCHIP (State Children’s Health Insurance), HIPAA (Health Insurance Portability and Accountability Act), CLIA (Clinical Laboratory Improvement Amendments), and several other federal health-related programs. “Co-Syndication Agents” means, singly and collectively, (i) BMO Capital Markets and (ii) Citizens Bank, N.A. “Commitments” means the Revolving Commitments or, the Term Commitments or the Additional Term Commitments, or any combination thereof, as the context may require. “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor statute. “Compliance Certificate” means a Compliance Certificate substantially in the form of Exhibit 7.1(c)-1. “Conforming Changes” means, with respect to either the use or administration of Daily Simple SOFR or Term SOFR, or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “SOFR Business Day,” the definition of “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section 3.1(c) and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents). 12

 

 

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“ C o n n e c t i o n I n c o m e Ta x e s ” m e a n s O t h e r C o n n e c t i o n Ta x e s t h a t a r e i m p o s e d o n o r m e a s u r e d b y n e t i n c o m e ( h o w e v e r d e n o m i n a t e d ) o r t h a t a r e fr a n c h i s e Ta x e s o r b r a n c h p r o fi t s Ta x e s. “ C o n s o l i d a t e d F i x e d C h a r g e C o v e r a g e R a t i o ” m e a n s, a s o f a n y d a t e o f d e t e r m i n a t i o n fo r t h e fo u r - F i s c a l Q u a r t e r p e r i o d m o s t r e c e n t l y e n d e d, t h e r a t i o o f ( a ) A dj u s t e d E B I T D A, t o ( b ) F i x e d C h a r g e s. “ C o n s o l i d a t e d I n t e r e s t C h a r g e s ” m e a n s, fo r a n y p e r i o d, fo r t h e C o n s o l i d a t e d P a r t i e s o n a c o n s o l i d a t e d b a s i s, a n a m o u n t e q u a l t o t h e s u m o f ( i ) a l l i n t e r e s t, p r e m i u m p a y m e n t s, d e b t d i s c o u n t, fe e s, c h a r g e s a n d r e l a t e d e x p e n s e s i n c o n n e c t i o n w i t h b o rr o w e d m o n e y ( i n c l u d i n g c ap i t a l i z e d i n t e r e s t ) o r i n c o n n e c t i o n w i t h t h e d e fe rr e d p u r c h a s e p r i c e o f a s s e t s, i n e a c h c a s e t o t h e e x t e n t t r e a t e d a s i n t e r e s t i n a c c o r d a n c e w i t h G A A P, p l u s ( i i ) t h e p o r t i o n o f r e n t e x p e n s e w i t h r e s p e c t t o s u c h p e r i o d u n d e r C ap i t a l L e a s e s t h a t i s t r e a t e d a s i n t e r e s t i n a c c o r d a n c e w i t h G A A P p l u s ( i i i ) t h e i m p l i e d i n t e r e s t c o m p o n e n t o f S y n t h e t i c L e a s e s w i t h r e s p e c t t o s u c h p e r i o d. “ C o n s o l i d a t e d L e v e r a g e R a t i o ” m e a n s, a s o f a n y d a t e o f d e t e r m i n a t i o n, t h e r a t i o o f ( a ) C o n s o l i d a t e d To t a l I n d e b t e d n e s s o n s u c h d a t e t o ( b ) To t a l A s s e t Va l u e o n s u c h d a t e. “ C o n s o l i d a t e d P a r t i e s ” m e a n s a c o l l e c t i v e r e fe r e n c e t o t h e P a r e n t a n d t h e S u b s i d i a r i e s o f t h e P a r e n t, a n d “ C o n s o l i d a t e d P a r t y ” m e a n s a n y o n e o f t h e m. “ C o n s o l i d a t e d S e c u r e d I n d e b t e d n e s s L e v e r a g e R a t i o ” m e a n s, a s o f a n y d a t e o f d e t e r m i n a t i o n, t h e q u o t i e n t ( e x p r e s s e d a s a p e r c e n t a g e ) o f ( a ) S e c u r e d I n d e b t e d n e s s, d i v i d e d b y ( b ) To t a l A s s e t Va l u e. “ C o n s o l i d a t e d Ta x e s ” m e a n s, fo r a n y p e r i o d, fo r t h e C o n s o l i d a t e d P a r t i e s o n a c o n s o l i d a t e d b a s i s, t h e a g g r e g a t e o f a l l t a x e s, a s d e t e r m i n e d i n a c c o r d a n c e w i t h G A A P. “ C o n s o l i d a t e d To t a l I n d e b t e d n e s s ” m e a n s, a s o f a n y d a t e o f d e t e r m i n a t i o n, w i t h o u t dup l i c a t i o n, t h e a g g r e g a t e a m o u n t o f I n d e b t e d n e s s o f t h e C o n s o l i d a t e d P a r t i e s, o n a c o n s o l i d a t e d b a s i s. “ C o n s o l i d a t e d To t a l U n s e c u r e d I n d e b t e d n e s s ” m e a n s, a s o f a n y d a t e o f d e t e r m i n a t i o n, w i t h o u t dup l i c a t i o n, t h e a g g r e g a t e a m o u n t o f U n s e c u r e d I n d e b t e d n e s s o f t h e C o n s o l i d a t e d P a r t i e s, o n a c o n s o l i d a t e d b a s i s. “ C o n s o l i d a t e d U n e n c u m b e r e d A s s e t Va l u e ” m e a n s, fo r t h e B o rr o w e r a n d i t s S ub s i d i a r i e s, a n d w i t h o u t dup l i c a t i o n, t h e s u m o f ( a ) t h e a g g r e g a t e n e t b o o k v a l u e, a s d e t e r m i n e d i n a c c o r d a n c e w i t h G A A P, o f a l l r e a l p r o p e r t y o f a P e r s o n t h a t i s n o t s ubj e c t t o a L i e n ( o t h e r t h a n P e r m i t t e d L i e n s ), p l u s ( b ) a l l a c c u m u l a t e d d e p r e c i a t i o n a n d a m o r t i z a t i o n w i t h r e s p e c t t o s u c h r e a l p r o p e r t i e s, p l u s ( c ) u n r e s t r i c t e d c a s h a n d c a s h e q u i v a l e n t s o f s u c h P e r s o n, p l u s ( d ) t h e s u m o f ( i ) u n e n c u m b e r e d m e z z a n i n e r e c e i v a b l e s a n d U n e n c u m b e r e d M o r t g a g e R e c e i v a b l e s ( a t t h e v a l u e r e fl e c t e d i n t h e c o n s o l i d a t e d fi n a n c i a l s t a t e m e n t s o f t h e B o r r o w e r, i n a c c o r d a n c e w i t h G A A P, a s o f s u c h d a t e, i n c l u d i n g t h e e ffe c t o f a n y i m p a i r m e n t c h a r g e s ), a n d ( i i ) u n e n c u m b e r e d m a r k e t a b l e s e c u r i t i e s ( a t t h e v a l u e r e fl e c t e d i n t h e c o n s o l i d a t e d fi n a n c i a l s t a t e m e n t s o f t h e B o r r o w e r, i n a c c o r d a n c e w i t h G A A P, a s o f s u c h d a t e, i n c l u d i n g t h e e ffe c t o f a n y i m p a i r m e n t c h a r g e s ), p r o v i d e d t h a t t h e i t e m s d e s c r i b e d i n t h i s c l a u s e ( i i ) a n d t h e p r e c e d i n g c l a u s e ( i ) s h a l l n o t b e t a k e n i n t o a c c o u n t t o t h e e x t e n t t h a t t h e a m o u n t s o f s u c h i t e m s e x c e e d, i n a g g r e g a t e, 2 0 % o f t h e C o n s o l i d a t e d U n e n c u m b e r e d A s s e t Va l u e, p l u s ( e ) a n y C o n s o l i d a t e d P a r t y’s p r o r a t a s h a r e o f t h e fo r g o i n g i t e m s a t t r i b u t a b l e t o i n t e r e s t s i n U n c o n s o l i d a t e d A ffi l i a t e s. F u r t h e r m o r e, t o t h e e x t e n t t h a t C o n s o l i d a t e d U n e n c u m b e r e d A s s e t Va l u e a t t r i b u t a b l e t o ( x ) a J o i n t Ve n tu r e E n t i t y e x c e e d s 2 5 % o f C o n s o l i d a t e d U n e n c u m b e r e d A s s e t Va l u e, s u c h e x c e s s s h a l l b e e x c l u d e d fr o m t h e C o n s o l i d a t e d U n e n c u m b e r e d A s s e t Va l u e o r ( y ) a s t o a fo r e i g n a s s e t, a n y fo r e i g n a s s e t n o t l o c a t e d i n a n O E C D c o u n t ry s h a l l b e e x c l u d e d fr o m t h e C o n s o l i d a t e d U n e n c u m b e r e d A s s e t Va l u e. 1 3

 

 

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“ C o n s o l i d a t e d U n e n c u m b e r e d E B I T D A ” m e a n s, w i t h r e s p e c t t o a n y U n e n c u m b e r e d P r o p e r t y fo r a n y p e r i o d, ( a ) t h e c o n s o l i d a t e d E B I T D A ( a s d e fi n e d b e l o w ) fo r s u c h U n e n c u m b e r e d P r o p e r t y fo r t h e fo u r - F i s c a l Q u a r t e r p e r i o d m o s t r e c e n t l y e n d e d l e s s ( b ) t h e C ap i t a l R e s e r v e s fo r s u c h U n e n c u m b e r e d P r o p e r t y fo r s u c h p e r i o d. “ C o n s o l i d a t e d U n s e c u r e d I n d e b t e d n e s s ” m e a n s a n y I n d e b t e d n e s s t h a t i s n o t s e c u r e d b y a L i e n. “ C o n s o l i d a t e d U n s e c u r e d I n t e r e s t E x p e n s e ” m e a n s, fo r a n y p e r i o d o f d e t e r m i n a t i o n, c o n s o l i d a t e d i n t e r e s t e x p e n s e fo r s u c h p e r i o d a t t r i b u t a b l e t o C o n s o l i d a t e d U n s e c u r e d I n d e b t e d n e s s o f t h e C o n s o l i d a t e d P a r t i e s. “ C o n s o l i d a t e d U n s e c u r e d L e v e r a g e R a t i o ” m e a n s, a s o f a n y d a t e o f d e t e r m i n a t i o n, t h e r a t i o o f ( a ) C o n s o l i d a t e d U n s e c u r e d I n d e b t e d n e s s o n s u c h d a t e t o ( b ) C o n s o l i d a t e d U n e n c u m b e r e d A s s e t Va l u e o n s u c h d a t e. “ C o n s t ru c t i o n - I n - P r o c e s s ” m e a n s a n y R e a l E s t a t e A s s e t w h i c h d o e s n o t h a v e b u i l d i n g s o r o t h e r i m p r o v e m e n t s l o c a t e d t h e r e o n, b u t w h i c h i s u n d e r d e v e l o p m e n t fo r t h e c o n s t ru c t i o n o f b u i l d i n g s o r i m p r o v e m e n t s w h i c h w i l l q u a l i fy a s o r w i l l c o n s t i tu t e H e a l t h c a r e F a c i l i t i e s up o n c o m p l e t i o n ( o r, t o t h e e x t e n t a n y b u i l d i n g s o r i m p r o v e m e n t s a r e l o c a t e d t h e r e o n, s u c h b u i l d i n g s o r o t h e r i m p r o v e m e n t s a r e u n d e r c o n s t ru c t i o n a n d a r e n o n - o p e r a t i o n a l, a n d n o c e r t i fi c a t e ( s ) o f o c c up a n c y h a v e b e e n i s s u e d w i t h r e s p e c t t h e r e t o ), a n d/ o r t h e b u d g e t e d c o s t s a s s o c i a t e d w i t h t h e a c q u i s i t i o n a n d c o n s t ru c t i o n o f s u c h R e a l E s t a t e A s s e t, i n c l u d i n g, b u t n o t l i m i t e d t o, t h e c o s t o f a c q u i r i n g s u c h R e a l E s t a t e A s s e t a s r e a s o n a b l y d e t e r m i n e d b y B o r r o w e r i n g o o d fa i t h, a s t h e c o n t e x t m a y r e q u i r e. “ C o n t r a c tu a l O b l i g a t i o n ” m e a n s, a s ap p l i e d t o a n y P e r s o n, a n y p r o v i s i o n o f a n y S e c u r i t y i s s u e d b y t h a t P e r s o n o r o f a n y i n d e n tu r e, m o r t g a g e, d e e d o f t ru s t, c o n t r a c t, u n d e r t a k i n g, a g r e e m e n t o r o t h e r i n s t ru m e n t t o w h i c h t h a t P e r s o n i s a p a r t y o r b y w h i c h i t o r a n y o f i t s p r o p e r t i e s i s b o u n d o r t o w h i c h i t o r a n y o f i t s p r o p e r t i e s i s s u bj e c t. “ C o n t r o l ” m e a n s t h e p o s s e s s i o n, d i r e c t l y o r i n d i r e c t l y, o f t h e p o w e r t o d i r e c t o r c a u s e t h e d i r e c t i o n o f t h e m a n a g e m e n t o r p o l i c i e s o f a P e r s o n, w h e t h e r t h r o u g h t h e a b i l i t y t o e x e r c i s e v o t i n g p o w e r, b y c o n t r a c t o r o t h e r w i s e. “ C o n t r o l l i n g ” a n d “ C o n t r o l l e d ” h a v e m e a n i n g s c o rr e l a t i v e t h e r e t o. “ C o v e r e d E n t i t y ” m e a n s a s d e fi n e d i n S e c t i o n 1 1.2 3 ( b ). “ C o v e r e d P a r t y ” m e a n s a s d e fi n e d i n S e c t i o n 1 1.2 3 ( a ). “ C o n v e r s i o n / C o n t i n u a t i o n D a t e ” m e a n s t h e e ffe c t i v e d a t e o f a c o n t i n u a t i o n o r c o n v e r s i o n, a s t h e c a s e m a y b e, a s s e t fo r t h i n t h e ap p l i c a b l e C o n v e r s i o n / C o n t i n u a t i o n N o t i c e. “ C o n v e r s i o n / C o n t i n u a t i o n N o t i c e ” m e a n s a C o n v e r s i o n / C o n t i n u a t i o n N o t i c e s u b s t a n t i a l l y i n t h e fo r m o f E x h i b i t 2.8. “ C r e d i t D a t e ” m e a n s t h e d a t e o f a C r e d i t E x t e n s i o n. “ C r e d i t D o c u m e n t ” m e a n s a n y o f t h i s A g r e e m e n t, t h e N o t e s, a n y G u a r a n t y, a n y G u a r a n t o r J o i n d e r A g r e e m e n t, t h e F e e L e t t e r, a n y d o c u m e n t e x e c u t e d a n d d e l i v e r e d b y t h e B o r r o w e r a n d/ o r a n y o t h e r C r e d i t P a r t y a n d/ o r a n y L e n d e r p u r s u a n t t o w h i c h a n y A g g r e g a t e R e v o l v i n g C o m m i t m e n t s o r t h e E x i s t i n g Te r m L o a n s a r e i n c r e a s e d o r a n y A d d i t i o n a l Te r m L o a n s a r e i n c u r r e d, i n e a c h c a s e p u r s u a n t t o S e c t i o n 2.1 9, a n y d o c u m e n t s o r c e r t i fi c a t e s e x e c u t e d b y a n y C r e d i t P a r t y i n fa v o r o f t h e I s s u i n g B a n k r e l a t i n g t o L e t t e r s o f C r e d i t, a n d, t o t h e e x t e n t e v i d e n c i n g o r s e c u r i n g t h e O b l i g a t i o n s, a l l o t h e r 1 4

 

 

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documents, instruments or agreements executed and delivered by any Credit Party for the benefit of the Administrative Agent, the Issuing Bank or any Lender in connection herewith or therewith, and including for the avoidance of doubt, any Guarantor Joinder Agreement (but specifically excluding secured Swap Contracts and secured Treasury Management Agreements). “Credit Extension” means the making of a Revolving Loan, an Existing Term Loan, an Additional Term Loan or the issuing of a Letter of Credit. “Credit Parties” means, collectively, the Borrower and each Guarantor. “Credit Rating” means the rating assigned by a Rating Agency to the senior unsecured long term Indebtedness of a Person. “Customary Recourse Exceptions” means, with respect to any Indebtedness, personal recourse or full recourse that is limited to, or based on occurrence of, fraud, misrepresentation, misapplication of cash, waste, environmental claims and liabilities, prohibited transfers, and violations of single purpose entity covenants. “Daily Simple SOFR” means, for any day (a “SOFR Rate Day”), a rate per annum equal to SOFR for the day (such day, the “SOFR Determination Day”) that is five (5) SOFR Business Days prior to (i) if such SOFR Rate Day is a SOFR Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a SOFR Business Day, the SOFR Business Day immediately preceding such SOFR Rate Day, in each case, as and when SOFR for such SOFR Rate Day is published by the Daily Simple SOFR Administrator on the SOFR Administrator’s Website. If by 5:00 pm on the second (2nd) SOFR Business Day immediately following any SOFR Determination Day, SOFR in respect of such SOFR Determination Day has not been published on the SOFR Administrator’s Website and a Benchmark Replacement Date with respect to Daily Simple SOFR has not occurred, then SOFR for such SOFR Determination Day will be SOFR as published in respect of the first preceding SOFR Business Day for which such SOFR was published on the SOFR Administrator’s Website; provided, that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple SOFR for no more than three (3) consecutive SOFR Rate Days. Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower. “Daily Simple SOFR Loan” means as defined in Section 3.5(f)each Loan bearing interest at a rate based upon Daily Simple SOFR. “Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect. “Default” means a condition or event that, after notice or lapse of time or both, would constitute an Event of Default. “Default Rate” means an interest rate equal to the Base Rate plus the Applicable Margin applicable to Base Rate Loans plus two percent (2%) per annum. “Defaulting Lender” means, subject to Section 2.16(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding 15

 

 

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(each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the Issuing Bank, the Swingline Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or the Issuing Bank or Swingline Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (e) has become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (e) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.16(b)) upon delivery of written notice of such determination to the Borrower, the Issuing Bank, the Swingline Lender and each Lender. “Development Property” means Construction in Progress and Unimproved Land. “Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons, whether pursuant to a “plan of division” or similar arrangement pursuant to Section 18-217 of the Delaware Limited Liability Company Act or any similar provision under the laws of any other applicable jurisdiction and pursuant to which the Dividing Person may or may not survive. “Dollars” and the sign “$” mean the lawful money of the United States. “Domestic Subsidiary” means any Subsidiary organized under the laws of the United States, any state thereof or the District of Columbia. “Early Opt-In Effective Date” means as defined in Section 3.5(f). “Early Opt-In Election” means as defined in Section 3.5(f). “EBITDA” means, with respect to a Person for any period, the sum of: (a) net income (or loss) of such Person for such period determined on a consolidated basis (excluding any income or losses from minority interests in the case of the Parent), in accordance with GAAP excluding acquisition related costs, and, exclusive of the following (but only to the extent included in determination of such net 16

 

 

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income (loss)): (i) depreciation and amortization expense; (ii) interest expense; (iii) income tax expense; (iv) extraordinary or non-recurring gains and losses; plus (b) such Person’s pro rata share of EBITDA of its Unconsolidated Affiliates. EBITDA shall be adjusted to remove any impact from straight line rent leveling adjustments required under GAAP and amortization of deferred market rent into income pursuant to Statement of Financial Accounting Standards number 141. “ECP Rules” means as defined in Section 4.1. “EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. “EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway. “EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. “Effective Date” means September 24, 2021. “Electronic Copy means as defined in Section 7.17. “Electronic Record” means as defined in Section 7.17. “Electronic Signature” means as defined in Section 7.17. “Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.5(b), subject to any consents and representations, if any as may be required therein. “Eligible Ground Lease” means, at any time, a ground lease (a) under which an Unencumbered Property Owner is the lessee and is the fee owner of the structural improvements located thereon, (b) that has a remaining term of not less than thirty (30) years (including the initial term and any additional extension options that are solely at the option of such Unencumbered Property Owner), (c) where no party to such lease is subject to a then continuing Bankruptcy Event, (d) such ground lease (or a related document executed by the applicable ground lessor) contains customary provisions protective of a first mortgage lender to the ground lessee thereunder, and (e) where such Unencumbered Property Owner’s interest in the underlying Real Estate Asset or the ground lease is not subordinate to any Lien other than any fee mortgage (so long as the mortgagee under such fee mortgage has agreed not to disturb the rights and interests of such Unencumbered Property Owner pursuant to a non-disturbance agreement reasonable satisfactory to the Administrative Agent), any Permitted Liens and such other encumbrances that are reasonably acceptable to the Administrative Agent. “Environmental Claim” means any known investigation, written notice, written notice of violation, written claim, action, suit, proceeding, written demand, abatement order or other written order or directive (conditional or otherwise), by any Person arising (i) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (ii) in connection with any Hazardous Material or 17

 

 

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any actual or alleged Hazardous Materials Activity; or (iii) in connection with any actual or alleged damage, injury, threat or harm to human health, safety, natural resources or the environment. “Environmental Laws” means any and all current or future federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other written requirements of Governmental Authorities relating to (i) any Hazardous Materials Activity; (ii) the generation, use, storage, transportation or disposal of Hazardous Materials; or (iii) protection of the environment from pollution, in any manner applicable to any Credit Party or any of its Subsidiaries or their respective Facilities. “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, Parent or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which Borrower or any Subsidiary assumed liability with respect to any of the foregoing. “Equity Interests” means, with respect to any Person, all of the shares of Capital Stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of Capital Stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination. “Equity Issuance” means, with respect to the Parent or any of its Subsidiaries, any issuance or sale by the Parent or such Subsidiary of shares of its Equity Interests, other than an issuance (a) to the Parent or any of its wholly-owned Subsidiaries, (b) in connection with a conversion of debt securities to equity, (c) in connection with the exercise by a present or former employee, officer or director under a stock incentive plan, stock option plan or other equity-based compensation plan or arrangement, (d) which occurred prior to the Effective Date, or (e) in connection with any Acquisition or capital expenditures permitted under this Agreement. “ERISA” means the Employee Retirement Income Security Act of 1974, and the regulations thereunder. “ERISAAffiliate” means, as applied to any Person, (i) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (ii) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (iii) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in clause (i) above or any trade or business described in clause (ii) above is a member. “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those for which notice to 18

 

 

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the PBGC has been waived by regulation); (ii) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code), the failure to make by its due date any minimum required contribution or any required installment under Section 430(j) of the Internal Revenue Code with respect to any Pension Plan or the failure to make by its due date any required contribution to a Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA; (iv) the withdrawal from any Pension Plan with two (2) or more contributing sponsors or the termination of any such Pension Plan, in either case resulting in material liability pursuant to Section 4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition reasonably likely to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (vi) the imposition of liability pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA, each case reasonably likely to result in material liability; (vii) the withdrawal of any Credit Party, any of its Subsidiaries or any of their respective ERISAAffiliates in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if such withdrawal is reasonably likely to result in material liability, or the receipt by any Credit Party, any of its Subsidiaries or any of their respective ERISAAffiliates of notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it is in “critical” or “endangered” status within the meaning of Section 103(f)(2)(G) or ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA, if such reorganization, insolvency or termination is reasonably likely to result in material liability; (viii) the imposition of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Pension Plan if such fines, penalties, taxes or related charges are reasonably likely to result in material liability; (ix) the assertion of a material claim (other than routine claims for benefits and funding obligations in the ordinary course) against any Pension Plan other than a Multiemployer Plan or the assets thereof, or against any Person in connection with any Pension Plan such Person sponsors or maintains reasonably likely to result in material liability; (x) receipt from the Internal Revenue Service of a final written determination of the failure of any Pension Plan intended to be qualified under Section 401(a) of the Internal Revenue Code to qualify under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any such plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or (xi) the imposition of a lien pursuant to Section 430(k) of the Internal Revenue Code or pursuant to Section 303(k) or 4068 of ERISA. “Erroneous Payment” means as defined in Section 10.11. “Erroneous Payment Deficiency Assignment” means as defined in Section 10.11. “Erroneous Payment Impacted Class” means as defined in Section 10.11. “Erroneous Payment Return Deficiency” means as defined in Section 10.11. “Erroneous Payment Subrogation Rights” means as defined in Section 10.11. “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time. “Event of Default” means each of the conditions or events set forth in Section 9.1. 19

 

 

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“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute. “Excluded Subsidiary” means (a) any Subsidiary of the Borrower or the Parent (i) holding title to assets which are or are to become collateral for any Secured Indebtedness of such Subsidiary; (ii) which is prohibited from guarantying the Indebtedness of any other Person pursuant to (A) any document, instrument or agreement evidencing such Secured Indebtedness or (B) a provision of such Subsidiary’s organizational documents which provision was included in such Subsidiary’s organizational documents as a condition to the extension of such Secured Indebtedness; and (iii) the liabilities for which none of the Guarantors (other than the Parent), any of their respective Subsidiaries (other than another Excluded Subsidiary) has any contingent liability or is otherwise liable with respect to any of the Indebtedness of such Subsidiary, except for customary exceptions for fraud, misapplication of funds, environmental indemnities, violation of “special purpose entity” covenants, bankruptcy, insolvency, receivership or other similar events and other similar exceptions from non-recourse liability, or (b) any Subsidiary which is not a Wholly-Owned Subsidiary and with respect to which the Parent or the Borrower, as applicable, does not have sufficient voting power (and is unable, after good faith efforts to do so, to cause any necessary non-affiliated equity holders to agree) to cause such entity to become a “Guarantor” or, notwithstanding such voting power, the interests of such non-affiliated holders has material economic value in the reasonable judgment of the Borrower that would be impaired by such Subsidiary becoming a “Guarantor.” “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant by such Guarantor of a Lien to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to Section 4.8 and any other “keepwell,” support or other agreement for the benefit of such Guarantor and any and all guarantees of such Guarantor’s Swap Obligations by other Credit Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a Lien, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one Swap Contract, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swap Contracts for which such Guaranty or Lien becomes illegal. “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending officeApplicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.17 or (ii) such Lender changes its lending officeApplicable Lending Office, except in each case to the extent that, pursuant to Section 3.3, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending officeApplicable Lending Office, (c) Taxes attributable to such Recipient’s failure to comply with Section 3.3(f) and (d) any U.S. federal withholding Taxes imposed under FATCA. “Existing Agreement” has the meaning given to such terms in the recitals hereto. 20

 

 

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“Existing Term Loans” means as defined in Section 2.1(c). “Extension Effective Date” means as defined in Section 2.18(a). “Extension Notice” means as defined in Section 2.18(a). “Facility” means any real property including all buildings, fixtures or other improvements located on such real property now, hereafter or heretofore owned, leased, operated or used by the Borrower or any of its Subsidiaries or any of their respective predecessors. “Facility Fee” means as defined in Section 2.10(b). “Facility Fee Rate” as detailed in the Investment Grade Pricing Grid. “FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board. “FATCA” means Sections 1471 through 1474 of the Internal Revenue Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b) of the Internal Revenue Code. “Federal Funds Effective Rate” means for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (1/100 of 1%)) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided, (i) if such day is not a Business Day, the Federal Funds Effective Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (ii) if no such rate is so published on such next succeeding Business Day, the Federal Funds Effective Rate for such day shall be the average rate charged to KeyBank or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent. “Fee Letter” means that certain letter agreement dated July 9, 2021, entered into by and among KeyBank, KeyBanc Capital Markets, and the Borrower. “Financial Officer Certification” means, with respect to the financial statements for which such certification is required, the certification of the chief financial officer, principal accounting officer, treasurer or controller of the Parent that such financial statements fairly present, in all material respects, the financial condition of the Parent and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments. “First Rated Year” means as defined in the definition of “Applicable Sustainability Adjustment.” “Fiscal Quarter” means a fiscal quarter of any Fiscal Year. “Fiscal Year” means the fiscal year of the Parent and its Subsidiaries ending on December 31 of each calendar year. “Fitch” means Fitch Ratings Inc., together with its successors. 21

 

 

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“Fixed Charges” means, for any period, the sum of (a) Consolidated Interest Charges for such period, plus (b) all regularly scheduled principal payments made with respect to Indebtedness of the Borrower, the Guarantors and their respective Subsidiaries during such period, other than any balloon, bullet or similar principal payment which repays such Indebtedness in full (provided that any such regularly scheduled principal payments that are not payable monthly shall, for purposes of this definition, be treated as if such payment were payable in equal monthly installments commencing on such payment date to and including the month immediately prior to the date of the next such scheduled payment or, if there is no such next scheduled payment, the maturity date therefor), plus (c) all Preferred Dividends paid during such period. Each Consolidated Party’s Ownership Share of the Fixed Charges of its Unconsolidated Affiliates shall be included in the determination of Fixed Charges. “Floor” means as defined in Section 3.5zero percent (f0%). “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary. “FRB” means the Board of Governors of the Federal Reserve System of the United States. “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the Issuing Bank, such Defaulting Lender’s Revolving Commitment Percentage of the outstanding Letter of Credit Obligations with respect to Letters of Credit issued by the Issuing Bank other than Letter of Credit Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swingline Lender, such Defaulting Lender’s Revolving Commitment Percentage of outstanding Swingline Loans made by the Swingline Lender other than Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders. “Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities. “Funded Debt” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP (except as provided in clauses (a)(ii) and (b) below): all obligations for borrowed money, whether current or long-term (including the(a) Obligations hereunder), all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments but specifically excluding (i) trade payables incurred in the ordinary course of business and (ii) earn outs or other similar deferred or contingent obligations incurred in connection with any acquisition or Investment until such time as such earn outs or obligations are recognized as a liability on the balance sheet of the Parent and its Subsidiaries in accordance with GAAP; all obligations in respect of the deferred purchase price of property or services(b) (other than trade accounts payable in the ordinary course of business and, in each case, not past due for more than sixty (60) days after the date on which such trade account payable was created), excluding any earn out obligations or similar deferred or contingent obligations until 22

 

 

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such time as such earn outs or obligations are recognized as a liability on the balance sheet of the Parent and its Subsidiaries in accordance with GAAP; all obligations under letters of credit (including standby and commercial),(c) bankers’ acceptances and similar instruments (including bank guaranties); the Attributable Indebtedness of Capital Leases, Synthetic Leases and(d) Securitization Transactions; all preferred stock and comparable equity interests providing for mandatory(e) redemption, sinking fund or other like payments; Guarantees in respect of Funded Debt of another Person; and(f) Funded Debt of any partnership or joint venture or other similar entity in which(g) such Person is a general partner or joint venturer, and, as such, has personal liability for such obligations, but only to the extent there is recourse to such Person for payment thereof. For purposes hereof, the amount of Funded Debt shall be determined (i) based on the outstanding principal amount in the case of borrowed money indebtedness under clause (a) and purchase money indebtedness and the deferred purchase obligations under clause (b), (ii) based on the maximum amount available to be drawn in the case of letter of credit obligations and the other obligations under clause (c), and (iii) based on the amount of Funded Debt that is the subject of the Guarantees in the case of Guarantees under clause (f). “Funding Notice” means a notice substantially in the form of Exhibit 2.1. “GAAP” means, subject to the limitations on the application thereof set forth in Section 1.2, accounting principles generally accepted in the United States in effect as of the date of determination thereof. “Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority. “Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing)). “Governmental Authorization” means any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority. “GRESB” means GRESB B.V., a wholly owned subsidiary of Green Business Certification Inc., a non-profit corporation incorporated in the United States under the laws of the District of Columbia. “Guarantee” means, as to any Person, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable 23

 

 

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or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part). The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a corresponding meaning. “Guarantor Joinder Agreement” means a guarantor joinder agreement substantially in the form of Exhibit 7.12 delivered by a Domestic Subsidiary of the Borrower pursuant to Section 7.12. “Guarantors” means (a) the Parent, (b) each other Person that joins as a Guarantor pursuant to Section 7.12, (c) with respect to (i) Obligations under any Swap Contract, (ii) Obligations under any Treasury Management Agreement and (iii) any Swap Obligation of a Specified Credit Party (determined before giving effect to Sections 4.1 and 4.8) under the Guaranty, the Borrower, and (d) their successors and permitted assigns. “Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative Agent, the Lenders and the other holders of the Obligations pursuant to Section 4. “Hazardous Materials” means any hazardous substances defined by the Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, et. seq., as amended (“CERCLA”), including any hazardous waste as defined under 40 C.F.R. Parts 260-270, gasoline or petroleum (including crude oil or any fraction thereof), asbestos or polychlorinated biphenyls. “Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing. “Healthcare Facility” means any Medical Office Property, outpatient center, group medical practice clinic, ASC (hospital-sponsored or seasoned group practice-sponsored), specialty hospital (short-term stay surgery, IRH, oncology), general acute care hospitals, selected post-acute/long-term care facilities and selected senior housing facilities or other property typically owned by healthcare real estate investment trusts and any ancillary businesses that are incidental to the foregoing. “Healthcare Laws” means as defined in Section 6.22(a). “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under Applicable Laws relating to any Lender which are currently in effect or, to the extent allowed under such Applicable Laws, which may hereafter 24

 

 

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be in effect and which allow a higher maximum non-usurious interest rate than Applicable Laws now allow. “HIPAA” means the Health Insurance Portability and Accountability Act of 1996 and the related regulations set forth at 45 CFR Parts 160 and 164. “HMO” means any health maintenance organization, managed care organization, any Person doing business as a health maintenance organization or managed care organization, or any Person required to qualify or be licensed as a health maintenance organization or managed care organization under applicable federal or state law (including, without limitation, HMO regulations). “IBA” means as defined in Section 3.5(a). “Impacted Interest Period” means as defined in the definition of “LIBOR”. “Impacted Loans” means as defined in Section 3.1(a)(i)). “Increase Effective Date” means as defined in Section 2.19(d). “Indebtedness” means, with respect to a Person, at the time of computation thereof, all of the following (without duplication): (a) all obligations of such Person in respect of money borrowed or for the deferred purchase price of property or services (excluding (i) trade debt incurred in the ordinary course of business and (ii) earn outs or other similar deferred or contingent obligations incurred in connection with any acquisition or Investment until such time as such earn outs or obligations are recognized as a liability on the balance sheet of the Parent and its Subsidiaries in accordance with GAAP); (b) all obligations of such Person, whether or not for money borrowed (i) represented by notes payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money indebtedness, conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily paid or that are issued or assumed as full or partial payment for property or for services rendered; (c) Capitalized Lease Obligations of such Person, excluding ground lease obligations recognized as a result of changes in GAAP beginning January 1, 2019; (d) all reimbursement obligations (contingent or otherwise) of such Person under or in respect of any letters of credit or acceptances (whether or not the same have been presented for payment); (e) all Off-Balance Sheet Obligations of such Person; (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Mandatorily Redeemable Stock issued by such Person or any other Person, valued at the voluntary or involuntary liquidation preference, whichever is greater, plus accrued and unpaid dividends; (g) all obligations of such Person in respect of any purchase obligation, repurchase obligation, takeout commitment or forward equity commitment, in each case evidenced by a binding agreement (excluding any such obligation to the extent the obligation can be satisfied by the issuance of Capital Stock (other than Mandatorily Redeemable Stock)); (h) net obligations under any Swap Contract (which shall be deemed to have an amount equal to the Swap Termination Value thereof at such time but in no event shall be less than zero); (i) all Indebtedness of other Persons which such Person has Guaranteed or is otherwise recourse to such Person (except for guaranties of customary exceptions for fraud, misapplication of funds, environmental indemnities, voluntary bankruptcy, collusive involuntary bankruptcy and other similar exceptions to non-recourse liability); (j) all Indebtedness of another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness or other payment obligation; and (k) such Person’s Ownership Share of the Indebtedness of any Unconsolidated Affiliate of such person. Indebtedness of any Person shall include Indebtedness of any partnership or joint venture in which such 25

 

 

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Person is a general partner or joint venture to the extent of such Person’s Ownership Share of such partnership or joint venture (except if such Indebtedness, or portion thereof, is recourse to such Person, in which case the greater of such Person’s Ownership Share of such Indebtedness or the amount of the recourse portion of the Indebtedness, shall be included as Indebtedness of such Person). “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Credit Party under any Credit Document and (b) to the extent not otherwise described in (a), Other Taxes. “Indemnitee” means as defined in Section 11.2(b). “Initial Revolving Maturity Date” means as defined in the definition of “Revolving Maturity Date” contained in this Section 1.1. “Intellectual Property” means all trademarks, service marks, trade names, copyrights, patents, patent rights, franchises related to intellectual property, licenses related to intellectual property and other intellectual property rights. “Interest Payment Date” means with respect to (a) any Base Rate Loan and any LIBOR Rate(other than a Swingline Loan) or any Daily Simple SOFR Loan, the last Business Day of each calendar month; and, (b) with respect to any SwinglineTerm SOFR Loan, the date onlast day of the Interest Period applicable to the Borrowing of which repayment of such Loan is a part and, in the case of a Borrowing of a Term SOFR Loan 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 was due, the day that such Loan is required to be repaid. “Interest Period” means, in connection with an LIBOR Rate Loan, an interestrespect to each Borrowing of Term SOFR Loans, a period of one (1), three (3) or six (6) months, ( in each case, subject to availability thereof) as selected by the Borrower in the applicable Funding Notice or Conversion/Continuation Notice, (i) initially, commencing on the Credit Date (or, with respect to the; provided, however, that (i) the initial Interest Period for any Borrowing of a Term SOFR Loan, shall commence on the Effective Date) or Conversion/Continuation Date thereof, as the case may be; and (ii) thereafter, commencingdate of such Borrowing (the date of a Borrowing resulting from a conversion or continuation shall be the date of such conversion or continuation) and each Interest Period occurring thereafter in respect of such Borrowing shall commence on the first day on whichafter the last day of the immediately preceding Interest Period expires; provided,(ii) if any Interest Period begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of such calendar month; (aiii) if anany Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day unless; provided, however, that if any Interest Period would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, in which case such Interest Period shall expire on the immediately preceding Business Day; (b) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; (civ) no Interest Period with respect tofor any Term SOFR Loan with respect to any portion of the Revolving Loans shall extend beyondmay be selected that would end after the Revolving Commitment Termination Date; (v) no Interest Period with respect to the outstanding portion of the Existing Term Loan or any Additional Term Loans shall extend beyond the applicable Term Maturity Date; and (dvi) noif, upon the expiration of any Interest Period with respect to, the outstanding portionBorrower has failed to (or may not) elect a new Interest Period to be 26

 

 

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applicable to the respective Borrowing of the Term Loan shall extend beyond the Term Maturity DateSOFR Loans as provided above, the Borrower shall be deemed to have elected to convert such Borrowing to Base Rate Loans effective as of the expiration date of such current Interest Period. “Interest Rate Determination Date” means, with respect to any Interest Period for any Term SOFR Loan, the date that is two (2) Business Days priorLookback Day with respect to the first day of such Interest PeriodTerm SOFR Loan. “Internal Revenue Code” means the Internal Revenue Code of 1986. “Interpolated Rate” means at any time, for any Impacted Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBOR) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBOR for the longest period for which the LIBOR is available that is shorter than the Impacted Interest Period; and (b) the LIBOR for the shortest period for which that LIBOR is available that exceeds the Impacted Interest Period, in each case, at such time. “Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Capital Stock of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person, or (c) an Acquisition. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested plus the cost of all additions thereto, minus repayment of or returns on such Investment, without adjustment for subsequent increases or decreases in the value of such Investment. “Investment Grade Pricing Grid” means the “Investment Grade Pricing Grid” as defined and otherwise detailed in the definition of Applicable Margin. “Investment Grade Rating” means a Credit Rating of BBB-/Baa3/BBB- (or the equivalent) or higher from a Rating Agency. “Involuntary Disposition” means the receipt by the Borrower or any of its Subsidiaries of any cash insurance proceeds or condemnation awards payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of its Property. “IRS” means the United States Internal Revenue Service. “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance of such Letter of Credit). “Issuance Notice” means an Issuance Notice substantially in the form of Exhibit 2.3. “Issuing Bank” means KeyBank, in its capacity as issuer of Letters of Credit hereunder, together with its successors and permitted assigns. 27

 

 

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“Joint Venture Entity” shall mean a Subsidiary of the Borrower which is not a Wholly Owned Subsidiary but which is consolidated with the Borrower and as to which the full financial, sale and other major decision making powers are controlled by the Borrower. “KeyBank” means KeyBank National Association, together with any successor in interest thereto. “Lead Arrangers” means, singly and collectively, (i) KeyBanc Capital Markets, Inc., (ii) BMO Capital Markets, and (iii) Citizens Bank, N.A. “Lender” means each Revolving Lender and each Term Lender. The Lenders as of the Effective Date are identified on the signature pages hereto and are set forth on Appendix A. “Letter of Credit” means any letter of credit issued hereunder. “Letter of Credit Fees” means as defined in Section 2.10(c)(i). “Letter of Credit Borrowing” means any Credit Extension resulting from a drawing under any Letter of Credit that has not been reimbursed or refinanced as a Borrowing of Revolving Loans. “Letter of Credit Obligations” means, at any time, the sum of (a) the maximum amount available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referenced therein, plus (b) the aggregate amount of all drawings under Letters of Credit that have not been reimbursed by the Borrower, including Letter of Credit Borrowings. For all purposes of this Agreement, (i) amounts available to be drawn under Letters of Credit will be calculated as provided in Section 1.3(i), and (ii) if a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn. “Letter of Credit Sublimit” means, as of any date of determination, the lesser of (i) ten percent (10%) of the Aggregate Revolving Commitments and (ii) the aggregate Available Commitments then in effect. “LIBOR” means, for any LIBOR Rate Loan for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for U.S. Dollars) for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Agent in its reasonable discretion; in each case the “LIBOR Screen Rate”) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period; provided that (i) if the LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided further that if the LIBOR Screen Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”) then the LIBOR shall be the Interpolated Rate; provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement, and (ii) if no such rate administered by ICE Benchmark Administration (or by such other Person that has taken over the administration of such rate for U.S. Dollars) is available to the Agent, the applicable LIBOR for the relevant Interest Period shall instead be the rate determined by the Agent to be the rate at which Keybank or one of its Affiliate banks offers to place deposits in U.S. dollars with first class banks in the London interbank market at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, 28

 

 

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in the approximate amount of the relevant LIBOR Rate Loan and having a maturity equal to such Interest Period. For any period during which an Applicable Reserve Requirement shall apply, LIBOR with respect to LIBOR Rate Loans shall be equal to the amount determined above divided by an amount equal to 1 minus the Applicable Reserve Requirement. “LIBOR Lending Office” means initially, the office Administrative Office as a Lender; thereafter, such other office of such Lender, if any, that shall be making or maintaining LIBOR Rate Loans. “LIBOR Rate Loans” means Loans bearing interest calculated by reference to “LIBOR”. “LIBOR Screen Rate” means as defined in the definition of “LIBOR”. “Lien” means (i) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing, and (ii) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities. “Loan” means any Revolving Loan, Swingline Loan, or the Existing Term Loan, or any Additional Term Loan, in each case as the context may require, and the Base Rate Loans and LIBOR RateSOFR Loans comprising such Loans. “Lookback Day” has the meaning specified in the definition of “Term SOFR”. “Mandatorily Redeemable Stock” means, with respect to any Person, any Capital Stock of such Person which by the terms of such Capital Stock (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than Capital Stock which is redeemable solely in exchange for common stock or other equivalent common Capital Stock), (b) is convertible into or exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock, or (c) is redeemable at the option of the holder thereof (other than in connection with customary provisions related to redemptions upon a change of control or asset sale), in whole or in part (other than Capital Stock which is redeemable solely in exchange for common stock or other equivalent common Capital Stock); in each case, on or prior to the date on which all of the Obligations are scheduled to be due and payable in full. “Margin Stock” means as defined in Regulation U of the FRB as in effect from time to time. “Master Agreement” means as defined in the definition of “Swap Contract” contained in this Section 1.1. “Material Acquisition” means (a) a single transaction for the purpose of or resulting, directly or indirectly, in an Acquisition (including the acquisition of assets of any Person whose equity interests are acquired) by one or more of the Borrower and its Subsidiaries of properties or assets of a Person for a gross purchase price equal to or in excess of ten (10%) of Total Asset Value (without giving effect to such Acquisition) or (b) one or more transactions for the purpose of or resulting, directly or indirectly, in an Acquisition (including the acquisition of assets of any Person whose equity interests are acquired) by one or more of the Borrower and its Subsidiaries of properties or assets of a Person in any two consecutive fiscal quarters for an aggregate gross purchase price equal to or in excess of ten (10%) of Total Asset Value (without giving effect to such Acquisitions). 29

 

 

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“Material Adverse Effect” means any effect, event, condition, action, omission, change or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a material adverse effect with respect to (i) the business, operations, properties, assets, or financial condition of the Parent, the Borrower and their Subsidiaries taken as a whole; (ii) the ability of the Credit Parties, taken as a whole, to fully and timely perform the Obligations; (iii) the legality, validity, binding effect, or enforceability against a Credit Party of any Credit Document to which it is a party; or (iv) the rights, remedies and benefits available to, or conferred upon, the Administrative Agent and any Lender or any holder of Obligations under any Credit Document. “Material Contract” means any Contractual Obligation to which the Parent, the Borrower or any of their Subsidiaries, or any of their respective assets, are bound (other than those evidenced by the Credit Documents) for which breach, nonperformance, cancellation or failure to renew could reasonably be expected to have a Material Adverse Effect. “Material Subsidiary” means (i) all Subsidiaries of the Borrower that own a direct or indirect interest in an Unencumbered Property, (ii) all Subsidiaries of the Borrower that guarantee any other Unsecured Indebtedness of the Borrower or the Parent, or (iii) all Subsidiaries that individually own assets that account for greater than five percent (5%) of Total Asset Value. For the avoidance of doubt, with respect to subclause (iii) of this definition, the term “Material Subsidiary” when referred to in Section 9.1 (f), (g) and (i) shall mean any Subsidiary that owns assets equal to or greater than $100,000,000. “Medicaid” means the medical assistance programs administered by state agencies and approved by CMS pursuant to the terms of Title XIX of the Social Security Act, codified at 42 U.S.C. §§1396 et seq. and related regulations. “Medical Office Properties” means each Property which is fully developed and operational for use primarily as a medical office building or an office building used for ancillary or support services for another Healthcare Facility. “Medical Services” means medical and health care services provided to a Person, including, but not limited to, medical and health care services provided to a Person which are covered by a policy of insurance, and includes, without limitation, physician services, nurse and therapist services, dental services, hospital services, skilled nursing facility services, comprehensive outpatient rehabilitation services, home health care services, residential and out-patient behavioral healthcare services, and medicine or health care equipment provided to a Person for a necessary or specifically requested valid and proper medical or health purpose. “Medicare” means the program of health benefits for the aged and disabled administered by CMS pursuant to the terms of Title XVIII of the Social Security Act, codified at 42 U.S.C. §§1395 et seq. and related regulations. “Moody’s” means Moody’s Investor Services, Inc., together with its successors. “Mortgage Receivables” means any loan receivables or similar contracts or arrangements for the payment of money, whether senior or subordinated (in right of payment or otherwise), the obligations under which are secured or backed by commercial real estate, which loan receivables may include commercial mortgage pass-through certificates and commercial mortgage-backed bonds or similar securities and the commercial mortgage loans and properties underlying or backing them, or whole loans, whether senior or subordinated (in right of payment or otherwise), secured by commercial real estate. 30

 

 

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“Multiemployer Plan” means any “multiemployer plan” as defined in Section 3(37) of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party or any of its ERISAAffiliates or with respect to which any Credit Party or any of its ERISAAffiliates previously sponsored, maintained or contributed to or was required to contributed to, and still has liability. “Negative Pledge” means any agreement (other than this Agreement or any other Credit Document) that in whole or in part prohibits the creation of any Lien on any assets of a Person; provided, however, that an agreement that establishes a maximum ratio of unsecured debt to unencumbered assets, or of secured debt to total assets, or that otherwise conditions a Person’s ability to encumber its assets upon the maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets, shall not constitute a “Negative Pledge” for purposes of this Agreement. “Net Cash Proceeds” means the aggregate proceeds paid in cash or Cash Equivalents received by any Consolidated Party in connection with any Equity Issuance, net of (a) direct costs incurred in connection therewith (including legal, accounting and investment banking fees and expenses, sales commissions and underwriting discounts), and (b) estimated taxes paid or payable (including sales, use or other transactional taxes and any net marginal increase in income taxes) as a result thereof. For purposes hereof, “Net Cash Proceeds” includes any cash or Cash Equivalents received upon the disposition of any non-cash consideration received by any Consolidated Party in connection with any Equity Issuance from and after the date of such disposition of such non-cash consideration. “New Term Loan Amendment” means an amendment to this Agreement providing for the making of one or more Additional Term Loans which shall be consistent with the applicable provisions of this Agreement relating to Additional Term Loans and otherwise reasonably satisfactory to Administrative Agent, Borrower, and any applicable Term Lenders. “Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (i) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Sections 11.4(b) or (c) and (ii) has been approved by the Required Lenders (or all other Lenders, in the case of any such consent, waiver or amendment that requires the approval of all Lenders) (other than, in each case, any Defaulting Lender). “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time. “Non-Recourse Indebtedness” means, for any Person, any Indebtedness of such Person for the repayment of which such Person has no personal liability (other than for Customary Recourse Exceptions) and/or with respect to which recourse of the applicable holder of such Indebtedness for non-payment is limited to such holder’s Liens on a particular asset or group of assets (other than for Customary Recourse Exceptions). “Note” means a Revolving Loan Note, Term Note, Additional Term Note or a Swingline Note. “Notice” means a Funding Notice, an Issuance Notice or a Conversion/Continuation Notice. “Obligations” means, with respect to each Credit Party, all advances to, and debts, liabilities, obligations, covenants and duties of, any Credit Party arising under any Credit Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and 31

 

 

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including interest and fees that accrue after the commencement by or against any Credit Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. The foregoing shall also include (a) all obligations under any Swap Contract between any Credit Party and any Swap Bank that is permitted to be incurred pursuant to Section 8.1(f) and (b) all obligations under any Treasury Management Agreement between any Credit Party and any Treasury Management Bank; provided, however, that the “Obligations” of a Credit Party shall exclude any Excluded Swap Obligations with respect to such Credit Party. “OECD” means the Organization for Economic Co-operation and Development for which the countries listed on the following website https://www.oecd.org (as updated from time to time) shall be included an OECD country for purposes of this Agreement. “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control. “Off-Balance Sheet Obligation” means the monetary obligation of a Person under (a) a Synthetic Lease or similar off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). “Organizational Documents” means (a) with respect to any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as amended, and (d) with respect to any limited liability company, its articles of organization, certificate of formation or comparable documents, as amended, and its operating agreement, as amended. In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such “Organizational Document” shall only be to a document of a type customarily certified by such governmental official. “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document). “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.17). “Outstanding Amount” means (a) with respect to Revolving Loans and Swingline Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any Borrowings and prepayments or repayments of Revolving Loans and Swingline Loans, as the case may be, occurring on such date; and (b) with respect to any Letter of Credit Obligations on any date, the aggregate outstanding amount of such Letter of Credit Obligations on such date after giving effect to any Credit Extension of a Letter of Credit occurring on such date and any other changes in the amount of the Letter of Credit 32

 

 

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Obligations as of such date, including as a result of any reimbursements by the Borrower of any drawing under any Letter of Credit. “Ownership Share” means the percentage of the Capital Stock owned by a Consolidated Party in an Unconsolidated Affiliate accounted for pursuant to the equity method of accounting under GAAP. “Parent” means as provided in the introductory paragraph to this Agreement. “Participant” means as defined in Section 11.5(d). “Participant Register” means as defined in Section 11.5(d). “Patriot Act” means as defined in Section 6.15(f). “Payment Recipient” means as defined in Section 10.11. “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto. “Pension Plan” means any “employee pension benefit plan” as defined in Section 3(2) of ERISA other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and which is sponsored, maintained or contributed to by, or required to be contributed to by, any Credit Party or any of its ERISAAffiliates or with respect to which any Credit Party or any of its ERISAAffiliates previously sponsored, maintained or contributed to, or was required to contribute to, and still has liability. “Permitted Liens” means each of the Liens permitted pursuant to Section 8.2. “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. “Preferred Dividends” means, for any given period and without duplication, all Restricted Payments accrued or paid (and in the case of Restricted Payments paid, which were not accrued during a prior period) during such period on Preferred Stock issued by a Credit Party or a Subsidiary. Preferred Dividends shall not include dividends or distributions paid or payable (a) solely in Capital Stock (other than Mandatorily Redeemable Stock) payable to holders of such class of Capital Stock; (b) to the Borrower or a Subsidiary; or (c) constituting or resulting in the redemption of Preferred Stock, other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full. “Preferred Stock” means, with respect to any Person, Capital Stock in such Person which are entitled to preference or priority over any other Capital Stock in such Person in respect of the payment of dividends or distribution of assets upon liquidation or both. “Prime Rate” means the per annum rate which the Administrative Agent publicly announces from time to time to be its prime lending rate, as in effect from time to time. The Administrative Agent’s prime lending rate is a reference rate and does not necessarily represent the lowest or best rate charged to customers. “Principal Office” means, for the Administrative Agent, the Swingline Lender and the Issuing Bank, such Person’s “Principal Office” as set forth on Appendix B, or such other office as it may from time to time designate in writing to the Borrower and each Lender. 33

 

 

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“Property” means an interest of any kind in any property or asset, whether real, personal or mixed, and whether tangible or intangible. “QFC” means as defined in Section 11.23. “QFC Credit Support” means as defined in Section 11.23. “Qualified ECP Guarantor” means, at any time, each Credit Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another Person to qualify as an “eligible contract participant” at such time under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. “Rating Agency” means S&P, Moody’s, or Fitch. “Real Estate Asset” means, a parcel of real property, together with all improvements (if any) thereon (including all tangible personal property owned by the person with a fee or leasehold interest in such real property and used in connection with such fee or leasehold interest in such real property, excluding any right of use value according to GAAP beginning January 1, 2019), owned in fee simple or leased pursuant to a ground lease by any Person; “Real Estate Assets” means a collective reference to each Real Estate Asset. “Recipient” means (a) the Administrative Agent, (b) any Lender and (c) the Issuing Bank, as applicable. “Recourse Indebtedness” means Indebtedness that is not Non-Recourse Indebtedness; provided that Customary Recourse Exceptions shall not, by itself, cause such Indebtedness to be characterized as Recourse Indebtedness. “Reference Year” means as defined in the definition of “Applicable Sustainability Adjustment.” “Refunded Swingline Loans” as defined in Section 2.2(b)(iii). “Register” means as defined in Section 11.5(c). “Reimbursement Date” means as defined in Section 2.3(d). “REIT” means a real estate investment trust as defined in Sections 856 through 860 of the Internal Revenue Code. “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates. “Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater. “Relevant Governmental Body” means as defined in Section 3.5(f)the FRB or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the FRB or the Federal Reserve Bank of New York, or any successor thereto. 34

 

 

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“Removal Effective Date” means as defined in Section 10.6(b). “Required Lenders” means, as of any date of determination, Lenders having greater than fifty percent (50%) of the aggregate amount of the unfunded Commitments, the outstanding Loans and the Letter of Credit Obligations, or, if the Commitments have been terminated, Lenders holding in the aggregate greater than fifty percent (50%) of the outstanding Loans and Letter of Credit Obligations (including, in each case, the aggregate amount of each Lender’s risk participation and funded participation in Letter of Credit Obligations and Swingline Loans); provided that the Commitments of, and the portion of the Loans and Letter of Credit Obligations held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders. “Required Revolving Lenders” means, as of any date of determination, Revolving Lenders having greater than fifty percent (50%) of the aggregate amount of the unfunded Revolving Commitments, the outstanding Revolving Loans and the Letter of Credit Obligations, or, if the Revolving Commitments have been terminated, Revolving Lenders holding in the aggregate greater than fifty percent (50%) of the outstanding Revolving Loans and Letter of Credit Obligations (including, in each case, the aggregate amount of each Revolving Lender’s risk participation and funded participation in Letter of Credit Obligations and Swingline Loans); provided that the Revolving Commitments of, and the portion of the Revolving Loans and Letter of Credit Obligations held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Lenders. “Required Term Lenders” means, as of any date of determination, Term Lenders having greater than fifty percent (50%) of the aggregate amount of the outstanding Existing Term Loan and all outstanding Additional Term Loans; provided that the portion of the Existing Term Loan and any Additional Term Loan held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Term Lenders. “Resignation Effective Date” means as defined in Section 10.6(a). “Resolution Authority” means EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority. “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Capital Stock of the Parent, the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Capital Stock or on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent Person thereof), or any setting apart of funds or property for any of the foregoing. “Revolving Commitment” means the commitment of a Revolving Lender to make or otherwise fund any Revolving Loan and to acquire participations in Letters of Credit and Swingline Loans hereunder and “Revolving Commitments” means such commitments of all Revolving Lenders in the aggregate. The amount of each Revolving Lender’s Revolving Commitment, if any, is set forth on Appendix A or in the applicable Assignment Agreement, subject to any increase, adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Revolving Commitments as of the Effective Date is ONE BILLION AND 0/100 DOLLARS ($1,000,000,000.00). The Revolving Commitment shall be subject to adjustment as provided in Sections 2.11 and 2.16. “Revolving Commitment Percentage” means, for each Revolving Lender, a fraction (expressed as a percentage carried to the twelfth decimal place), the numerator of which is such Revolving Lender’s Revolving Commitment and the denominator of which is the Aggregate Revolving Commitments; 35

 

 

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provided that if the commitment of each Revolving Lender to make Revolving Loans and the obligation of the Issuing Bank to issue Letters of Credit have been terminated pursuant to Section 9.2 or if the Aggregate Revolving Commitments have expired, then the Revolving Commitment Percentage of each Revolving Lender shall be determined based on the Revolving Commitment Percentage of such Revolving Lender most recently in effect, giving effect to any subsequent assignments. The Revolving Commitment Percentages as of the Effective Date are set forth on Appendix A. The Revolving Commitment Percentages shall be subject to adjustment as provided in Section 2.16. “Revolving Commitment Period” means the period from and including the Effective Date to the earlier of (a)(i) in the case of Revolving Loans and Swingline Loans, the Revolving Commitment Termination Date or (ii) in the case of the Letters of Credit, the expiration date thereof, or (b) in each case, the date on which the Revolving Commitments shall have been terminated as provided herein. “Revolving Commitment Termination Date” means the earliest to occur of (a) the Revolving Maturity Date; (b) the date the Revolving Commitments are permanently reduced to zero pursuant to Section 2.11(b); and (c) the date of the termination of the Revolving Commitments pursuant to Section 9.2. “Revolving Credit Exposure” means, as to any Revolving Lender at any time, the aggregate principal amount at such time of its outstanding Revolving Loans and such Revolving Lender’s participation in Letter of Credit Obligations and Swingline Loans at such time. “Revolving Lender” means each financial institution with a Revolving Commitment, or if the Revolving Commitments have been terminated hereunder, each financial institution holding any Revolving Credit Exposure, together in each instance with its successors and permitted assigns. “Revolving Loan” means a Loan made by a Lender to the Borrower pursuant to Section 2.1(a). “Revolving Loan Note” means a promissory note in the form of Exhibit 2.5-1, as it may be amended, supplemented or otherwise modified from time to time. “Revolving Maturity Date” means (a) September 24, 2025 (the “Initial Revolving Maturity Date”), or (b) if the Initial Revolving Maturity Date set forth in the preceding clause (a) is extended pursuant to Section 2.18, such extended maturity date as determined pursuant to such Section; provided, however, that, in either case, if such date is not a Business Day, the Revolving Maturity Date shall be the next preceding Business Day. “Revolving Obligations” means the Revolving Loans, the Letter of Credit Obligations and the Swingline Loans. “Sale and Leaseback Transaction” means, with respect to the Borrower or any Subsidiary, any arrangement, directly or indirectly, with any Person (other than a Credit Party) whereby the Borrower or such Subsidiary shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold or transferred. “Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization directly or indirectly controlled by a country or its government, or (d) a person or entity resident in or determined to be resident in a country, that is subject to a country sanctions program administered and enforced by OFAC, the United Nations Security 36

 

 

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Council, the European Union or HerHis Majesty’s Treasury (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria). “Sanctioned Person” means a person named on the list of Specially Designated Nationals maintained by OFAC. “SEC” means the United States Securities and Exchange Commission. “S&P” means Standard & Poor’sS&P Global Ratings Services, a Standard & Poor’s Financial Services LLC businesssubsidiary of S&P Global Inc., and any successor thereto. “Secured Indebtedness” means, as of any date of determination, that portion of Consolidated Total Indebtedness which is secured by a Lien on any real property owned or leased by the Parent, the Borrower or any Subsidiary or Unconsolidated Affiliate, as applicable. “Secured Recourse Indebtedness” means any Secured Indebtedness that is also Recourse Indebtedness. “Securities” means any stock, shares, partnership interests, limited liability company interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement (e.g., stock appreciation rights), options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing. “Securitization Transaction” means any financing or factoring or similar transaction (or series of such transactions) entered by the Borrower or any of its Subsidiaries pursuant to which the Borrower or such Subsidiary may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment (the “Securitization Receivables”) to a special purpose subsidiary or affiliate (a “Securitization Subsidiary”) or any other Person. “Shareholder Equity” means, as of any date of determination, consolidated shareholders’ equity of the Parent and its Subsidiaries as of that date determined in accordance with GAAP. “SOFR” means as defined in Section 3.5(f). “SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator. “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). “SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time. “SOFR Business Day” means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income 37

 

 

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departments of its members be closed for the entire day for purposes of trading in United States government securities. “SOFR Determination Day” has the meaning specified in the definition of “Daily Simple SOFR”. “SOFR Index Adjustment” means a percentage equal to 0.10% per annum. “SOFR Loan” means each Loan bearing interest at a rate based upon (a) Adjusted Term SOFR (other than pursuant to clause (iii) of the definition of “Base Rate”) or (b) Adjusted Daily Simple SOFR. “SOFR Rate Day” has the meaning specified in the definition of “Daily Simple SOFR”. “Solvent” or “Solvency” means, with respect to any Person as of a particular date, that on such date (a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business, (b) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature in their ordinary course, (c) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage, (d) the fair value of the property of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person and (e) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured. In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. “Specified Credit Party” means any Credit Party that is not then an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to Section 10.11). “Subordinated Debt” means any Indebtedness of the Borrower or any of its Subsidiaries that by its terms is expressly subordinated in right of payment to the prior payment of the Obligations under this Agreement on terms and conditions, and evidenced by documentation, reasonably satisfactory to the Administrative Agent. “Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than fifty percent (50%) of the total voting power of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person; provided, in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding. Unless otherwise provided, “Subsidiary” shall refer to a Subsidiary of the Borrower. “Supported QFC” means as defined in Section 11.23. “Sustainable Agent” shall be such sustainable agent as selected and designated by the Borrower, in consultation with the Administrative Agent, at such time as Borrower has obtained a Sustainability Rating issued by GRESB. 38

 

 

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“Sustainability Adjustment Date” means the Business Day immediately following the date on which the Borrower provides to Administrative Agent a Compliance Certificate referencing the Applicable Sustainability Adjustment for the applicable Reference Year pursuant to Section 7.1(c). “Sustainability Adjustment Period” means, (a) in the case of the initial Sustainability Adjustment Period, the period commencing on the first Sustainability Adjustment Date following the date upon which the Borrower obtains a Sustainability Rating and ending on (but excluding) the next Sustainability Adjustment Date and (b) in the case of each other Sustainability Adjustment Period, the period commencing on the last day of the immediately preceding Sustainability Adjustment Period and ending on (but excluding) the next Sustainability Adjustment Date. “Sustainability Rating” means, with respect to any Reference Year, the “GRESB Score”, as calculated and assigned to the Borrower from time to time by GRESB and published in the most recently released GRESB Real Estate Assessment thereof. It is understood and agreed that the Sustainability Rating for the First Rated Year shall be deemed to be the Borrower’s initial Sustainability Rating as in effect following the Effective Date. “Sustainability Rating Change” means, for any Reference Year, the percentage change of the Sustainability Rating over the Sustainability Rating for the immediately preceding Reference Year. “Swap Bank” means (a) any Person that is a Lender or an Affiliate of a Lender at the time that it becomes a party to a Swap Contract with any Credit Party and (b) any Lender on the Effective Date or Affiliate of such Lender that is party to a Swap Contract with any Credit Party in existence on the Effective Date, in each case to the extent permitted by Section 8.1(f). “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement. “Swap Obligations” means with respect to any Guarantor any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act. “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender). 39

 

 

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“Swingline Lender” means KeyBank in its capacity as Swingline Lender hereunder, together with its successors and permitted assigns in such capacity. “Swingline Loan” means a Loan made by the Swingline Lender to the Borrower pursuant to Section 2.2. “Swingline Note” means a promissory note in the form of Exhibit 2.5-2, as it may be amended, supplemented or otherwise modified from time to time. “Swingline Rate” means the Base Rate plus the Applicable Margin applicable to Revolving Loans that are Base Rate Loans. “Swingline Sublimit” means, at any time of determination, the lesser of (i) ten percent (10%) of the Aggregate Revolving Commitments and (ii) the aggregate Available Commitments then in effect. “Synthetic Lease” means a lease transaction under which the parties intend that (i) the lease will be treated as an “operating lease” by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended and (ii) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like property. “Tangible Net Worth” means, as of a given date, (a) the Shareholder Equity of the Parent and its Subsidiaries determined on a consolidated basis plus (b) accumulated depreciation and amortization expense minus (c) the following (to the extent reflected in determining Shareholder Equity of the Parent and its Subsidiaries): (i) the amount of any write-up in the book value of any assets contained in any balance sheet resulting from revaluation thereof or any write-up in excess of the cost of such assets acquired, and (ii) all amounts appearing on the assets side of any such balance sheet for assets which would be classified as “goodwill” under GAAP, all determined on a consolidated basis. “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other similar charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. “Termination Date” means as defined in the lead-in to Section 7. “Term Commitment” means, with respect to each Term Lender, the commitment of such Term Lender to make its portion of the Existing Term Loan to the Borrower on the Effective Date in an aggregate principal amount not exceeding the amount set forth with respect to such Term Lender on Appendix A. The aggregate amount of the Term Commitments as of the Effective Date is TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000.00). The Term Commitment shall be subject to adjustment as provided in Section 2.19. “Term Lender” means each financial institution holding any portion of the Existing Term Loan or any Additional Term Loan, together with its successors and permitted assigns. “Term Loan” has the meaning set forth in Section 2.1(c) hereofmeans any Existing Term Loan or any Additional Term Loan. “Term Maturity Date” means (a) with respect to the Existing Term Loan, June 10, 2023, and (b) with respect to any Additional Term Loan, the maturity date therefor as set forth in the applicable New Term Loan Amendment. 40

 

 

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“ Te r m N o t e ” m e a n s a p r o m i s s o ry n o t e i n t h e fo r m o f E x h i b i t 2.5 - 3, a s i t m a y b e a m e n d e d, s up p l e m e n t e d o r o t h e rw i s e m o d i fi e d fr o m t i m e t o t i m e. “ Te r m S O F R ” m e a n s a s d e fi n e d i n S e c t i o n 3.5. “ Te r m S O F R ” m e a n s fo r a n y c a l c u l a t i o n w i t h r e s p e c t t o a Te r m S O F R L o a n, t h e Te r m S O F R R e fe r e n c e R a t e fo r a t e n o r c o m p a r a b l e t o t h e ap p l i c a b l e I n t e r e s t P e r i o d o n t h e d a y ( s u c h d a y, t h e “ L o o kb a c k D a y ” ) t h a t i s t w o ( 2 ) S O F R B u s i n e s s D a y s p r i o r t o t h e fi r s t d a y o f s u c h I n t e r e s t P e r i o d, a s s u c h r a t e i s p ub l i s h e d b y t h e Te r m S O F R A d m i n i s t r a t o r; p r o v i d e d, h o w e v e r, t h a t i f a s o f 5:0 0 p.m. o n a n y L o o kb a c k D a y t h e Te r m S O F R R e fe r e n c e R a t e fo r t h e ap p l i c a b l e t e n o r h a s n o t b e e n p ub l i s h e d b y t h e Te r m S O F R A d m i n i s t r a t o r a n d a B e n c h m a r k R e p l a c e m e n t D a t e w i t h r e s p e c t t o t h e Te r m S O F R R e fe r e n c e R a t e h a s n o t o c c u r r e d, t h e n Te r m S O F R w i l l b e t h e Te r m S O F R R e fe r e n c e R a t e fo r s u c h t e n o r a s p u b l i s h e d b y t h e Te r m S O F R A d m i n i s t r a t o r o n t h e fi r s t p r e c e d i n g S O F R B u s i n e s s D a y fo r w h i c h s u c h Te r m S O F R R e fe r e n c e R a t e fo r s u c h t e n o r w a s p u b l i s h e d b y t h e Te r m S O F R A d m i n i s t r a t o r s o l o n g a s s u c h fi r s t p r e c e d i n g S O F R B u s i n e s s D a y i s n o t m o r e t h a n t h r e e ( 3 ) S O F R B u s i n e s s D a y s p r i o r t o s u c h L o o kb a c k D a y, a n d fo r a n y c a l c u l a t i o n w i t h r e s p e c t t o a B a s e R a t e L o a n, t h e Te r m S O F R R e fe r e n c e R a t e fo r a t e n o r o f o n e m o n t h o n t h e d a y t h a t i s t w o S O F R B u s i n e s s D a y s p r i o r t o t h e d a t e t h e B a s e R a t e i s d e t e r m i n e d, s u bj e c t t o t h e p r o v i s o p r o v i d e d a b o v e. “ Te r m S O F R A d m i n i s t r a t o r ” m e a n s C M E ( o r a s u c c e s s o r a d m i n i s t r a t o r o f t h e Te r m S O F R R e fe r e n c e R a t e, a s s e l e c t e d b y t h e A d m i n i s t r a t i v e A g e n t i n i t s r e a s o n a b l e d i s c r e t i o n ). “ Te r m S O F R L o a n ” m e a n s e a c h L o a n b e a r i n g i n t e r e s t a t a r a t e b a s e d up o n A dj u s t e d Te r m S O F R ( o t h e r t h a n p u r s u a n t t o c l a u s e ( i i i ) o f t h e d e fi n i t i o n o f B a s e R a t e ). “ Te r m S O F R R e fe r e n c e R a t e ” m e a n s t h e fo rw a r d - l o o k i n g t e r m r a t e b a s e d o n S O F R. “ To t a l A s s e t Va l u e ” m e a n s, a s o f a n y d a t e o f d e t e r m i n a t i o n, t h e s u m o f t h e fo l l o w i n g, without duplication, of the Borrower and its Subsidiaries for the fiscal quarter most recently ended: (a) the Real Estate Asset property values as determined in accordance with GAAP plus all accumulated depreciation associated with such Real Estate Asset, plus (b) unrestricted cash and cash equivalents as of the last day of such Fiscal Quarter, plus (c) the book value of land holdings as of the last day of such fiscal quarter, plus (d) the book value of the actual funded portion of Construction in Progress as of the last day of such Fiscal Quarter, plus (e) the sum of (i) mezzanine receivables and the book value of Mortgage Receivables as of the last day of such Fiscal Quarter (at the value reflected in the consolidated financial statements of the Borrower, in accordance with GAAP, as of such date, including the effect of any impairment charges), and (ii) unencumbered marketable securities (at the value reflected in the consolidated financial statements of the Borrower, in accordance with GAAP, as of such date, including the effect of any impairment charges), plus (f) any Consolidated Party’s pro rata share of the forgoing items attributable to interests in Unconsolidated Affiliates. “Total Facility Amount” means as defined in Section 2.19. “Treasury Management Agreement” means any agreement governing the provision of treasury or cash management services, including deposit accounts, funds transfer, automated clearinghouse, commercial credit cards, purchasing cards, cardless e-payable services, debit cards, stored value cards, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services. “Treasury Management Bank” means (a) any Person that is a Lender or an Affiliate of a Lender at the time that it becomes a party to a Treasury Management Agreement with any Credit Party and (b) 41

 

 

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any Lender on the Effective Date or Affiliate of such Lender that is a party to a Treasury Management Agreement with any Credit Party in existence on the Effective Date. “Type of Loan” means a Base Rate Loan or a LIBOR Rate, Daily Simple SOFR Loan or Term SOFR Loan. “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in the State of New York (or any other applicable jurisdiction, as the context may require). “UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms. “UK Resolution Authority” means The Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution. “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment. “Unconsolidated Affiliate” means any corporation, partnership, association, joint venture or other entity in each case which is not a Consolidated Party and in which a Consolidated Party owns, directly or indirectly, any Capital Stock. “Unencumbered Interest Coverage Ratio” means, the ratio of Consolidated Unencumbered EBITDA to Consolidated Unsecured Interest Expense. “Unencumbered Mortgage Receivables” means, with respect to any Person, Mortgage Receivables owned or held by such Person that are not pledged as collateral for, or otherwise subject to a Lien as security for, any Indebtedness. “Unencumbered Property” means a Real Estate Asset which, as of any date of determination satisfies all of the following requirements: (a) such Real Estate Asset (a) is one hundred percent (100%) (i) owned in fee simple or (ii) leased pursuant to an Eligible Ground Lease by (x) the Borrower or (y) an Unencumbered Property Owner that is (1) a Domestic Subsidiary and (2) a Wholly-Owned Subsidiary or Joint Venture Entity of the Borrower and (b) is located in a state in the United States or the District of Columbia; (b) such Real Estate Asset is not subject to any Lien (other than a Permitted Lien) or any Negative Pledge (other than pursuant to an Eligible Ground Lease); (c) such Real Estate Asset is free of all material mechanical and structural defects, or other adverse matters except for defects, conditions or matters individually or collectively which are not material to the profitable operation of such Real Estate Asset; and (d) such Real Estate Asset is a Healthcare Facility that has been fully developed, is operational and is well located within a primary or secondary market and is maintaining a stable current income. 42

 

 

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“Unencumbered Property Owner” means each Person that owns a Real Estate Asset which is or is proposed to be an Unencumbered Property and which is (1) a Domestic Subsidiary and (2) a Wholly-Owned Subsidiary of the Borrower or a Joint Venture Entity. “Unimproved Land” means any Real Estate Asset consisting solely of unimproved land on which no construction or general development activity has commenced, but which is zoned for its intended use and is otherwise suitable for future development as a Healthcare Facility; provided, the term “Unimproved Land” shall not include any pad, out-parcel or similar separate parcel included in or adjacent to and part of a larger development of real property comprising any other Real Estate Asset (unless such other Real Estate Asset is Unimproved Land). “United States” or “U.S.” means the United States of America. “Unsecured Indebtedness” means, for any Person, any Indebtedness of such Person that is not secured by a Lien. “USD LIBOR” means as defined in Section 3.5(f). “U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Internal Revenue Code. “U.S. Special Resolution Regimes” means as defined in Section 11.23. “U.S. Tax Compliance Certificate” means as defined in Section 3.3(f). “Wholly-Owned Subsidiary” means, with respect to any direct or indirect Subsidiary of any Person, that one hundred percent (100%) of the Equity Interests with ordinary voting power issued by such Subsidiary (other than directors’ qualifying shares and investments by foreign nationals mandated by Applicable Laws) is beneficially owned, directly or indirectly, by such Person. “Withholding Agent” means any Credit Party and the Administrative Agent. “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers. Accounting Terms.Section 1.2 (a) Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. Financial statements and other information required to be delivered by the Borrower to the Lenders pursuant to clauses (a), (b), (c) and (d) of Section 7.1 shall be prepared in accordance with GAAP as in effect at the time of such preparation. If at any time any change in GAAP or in the consistent application thereof would affect the computation of any financial covenant or requirement set forth in any Credit Document, and either the 43

 

 

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Borrower or the Required Lenders shall object in writing to determining compliance based on such change, then the Administrative Agent and Borrower shall negotiate in good faith to amend such financial covenant, requirement or applicable defined terms to preserve the original intent thereof in light of such change to GAAP (it being understood and agreed that such amendments agreed between the Administrative Agent and the Borrower shall require consent of the Required Lenders only), provided that, until so amended such computations shall continue to be made on a basis consistent with the most recent financial statements delivered pursuant to clauses (a), (b), (c) and (d) of Section 7.1 as to which no such objection has been made. Notwithstanding anything to the contrary in the Credit Documents, and notwithstanding any accounting change after January 1, 2019 that would require lease obligations (whether such lease obligations are entered into before or after such date) that would be treated as operating leases to be classified and accounted for as Capital Leases or otherwise reflected on the consolidated balance sheet of the Parent and its Subsidiaries, for the purposes of determining compliance with any covenant contained herein, such obligations shall be treated in the same manner as operating leases are treated as of such date and shall not constitute Indebtedness or a Capital Leases of the Parent or any of its Subsidiaries as a result of such changes in accounting. (b) FASB ASC 825 and FASB ASC 470-20. Notwithstanding the above, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at one hundred percent (100%) of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded. Rules of Interpretation.Section 1.3 The definitions of terms herein shall apply equally to the singular and plural(a) forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Credit Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Credit Document, shall be construed to refer to such Credit Document in its entirety and not to any particular provision thereof, (iv) all references in a Credit Document to Sections, Exhibits, Appendices and Schedules shall be construed to refer to Sections of, and Exhibits, Appendices and Schedules to, the Credit Document in which such references appear, (v) any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. The terms lease and license shall include sub-lease and sub-license.(b) All terms not specifically defined herein or by GAAP, which terms are defined(c) in the UCC, shall have the meanings assigned to them in the UCC of the relevant jurisdiction, with the term “instrument” being that defined under Article 9 of the UCC of such jurisdiction. 44

 

 

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Unless otherwise expressly indicated, in the computation of periods of time from(d) a specified date to a later specified date, the word “from” means “from and including”, the words “to” and “until” each mean “to but excluding”, and the word “through” means “to and including”. To the extent that any of the representations and warranties contained in Section(e) 6 under this Agreement or in any of the other Credit Documents is qualified by “Material Adverse Effect”, the qualifier “in all material respects” contained in Section 5.2(c) and the qualifier “in any material respect” contained in Section 9.1(d) shall not apply. Whenever the phrase “to the knowledge of” or words of similar import relating(f) to the knowledge of a Person are used herein or in any other Credit Document, such phrase shall mean and refer to the actual knowledge of the Authorized Officers of such Person. This Agreement and the other Credit Documents are the result of negotiation(g) among, and have been reviewed by counsel to, among others, the Administrative Agent and the Credit Parties, and are the product of discussions and negotiations among all parties. Accordingly, this Agreement and the other Credit Documents are not intended to be construed against the Administrative Agent or any of the Lenders merely on account of the Administrative Agent’s or any Lender’s involvement in the preparation of such documents. Unless otherwise indicated, all references to a specific time shall be construed to(h) Eastern Standard Time or Eastern Daylight Savings Time, as the case may be. Unless otherwise expressly provided herein, all references to dollar amounts and “$” shall mean Dollars. Unless otherwise specified herein, the amount of a Letter of Credit at any time(i) shall be deemed to be the stated amount of such Letter of Credit in effect at such time (after giving effect to any permanent reduction in the stated amount of such Letter of Credit pursuant to the terms of such Letter of Credit); provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any letter of credit application or other issuer document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time. (j) Benchmark Notification. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to USD LIBOR or with respect to any alternative or successor benchmark thereto, or replacement rate therefor or thereof, including, without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate, as it may or may not be adjusted pursuant to Section 3.5, will be similar to, or produce the same value or economic equivalence of, USD LIBOR or any other benchmark or have the same volume or liquidity as did USD LIBOR or any other benchmark rate prior to its discontinuance or unavailability. Divisions.Section 1.4 For all purposes under this Agreement, in connection with Division: (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and 45

 

 

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(b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time. Rates.Section 1.5 The interest rate on Loans may be determined by reference to a benchmark rate that is, or may in the future become, the subject of regulatory reform or cessation. The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service. In connection with the use or administration of Daily Simple SOFR and Term SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. The Administrative Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Daily Simple SOFR and Term SOFR. LOANS AND LETTERS OF CREDITSection 2 Revolving Loans and, the Existing Term Loan and Additional Term Loans.Section 2.1 Revolving Loans. During the Revolving Commitment Period, subject to the(a) terms and conditions hereof, each Revolving Lender severally agrees to make revolving loans denominated in U.S. Dollars (each such loan, a “Revolving Loan”) to the Borrower in an aggregate amount up to but not exceeding such Revolving Lender’s Revolving Commitment; provided, that after giving effect to the making of any Revolving Loan, in no event shall the Outstanding Amount of Revolving Obligations exceed the Aggregate Revolving Commitments. Amounts borrowed pursuant to this Section 2.1(a) may be repaid and reborrowed without premium or penalty (subject to Section 3.1(c)) during the Revolving Commitment Period. The Revolving Loans may consist of Base Rate Loans, LIBOR RateDaily Simple SOFR Loans, Term SOFR Loans, or a combination thereof, as the Borrower may request. Each Revolving Lender’s 46

 

 

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Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Revolving Loans and all other amounts owed hereunder with respect to the Revolving Loans and the Revolving Commitments shall be paid in full no later than such date. Mechanics for Revolving Loans.(b) Except pursuant to Section 2.2(b)(iii), all Revolving Loans shall be made(i) in an aggregate minimum amount of $500,000 and integral multiples of $100,000 in excess of that amount. Whenever the Borrower desires that the Revolving Lenders make a(ii) Revolving Loan, the Borrower shall deliver to the Administrative Agent a fully executed and delivered Funding Notice no later than (x) 1:00 p.m. at least three (3) Business Days in advance of the proposed Credit Date (or such later time as the Administrative Agent may agree) in the case of an LIBOR Ratea Term SOFR Loan and (y) 1:00 p.m. at least one (1) Business Day in advance of the proposed Credit Date (or such later time as the Administrative Agent may agree) in the case of a Loan that is a Base Rate Loan or a Daily Simple SOFR Loan. Except as otherwise provided herein, any Funding Notice for any Loans that are LIBOR RateTerm SOFR Loans shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make a borrowing in accordance therewith. Notice of receipt of each Funding Notice in respect of each Revolving(iii) Loan, together with the amount of each Revolving Lender’s Revolving Commitment Percentage thereof, respectively, if any, together with the applicable interest rate, shall be provided by the Administrative Agent to each applicable Revolving Lender with reasonable promptness, but (provided the Administrative Agent shall have received such notice by 1:00 p.m.) not later than 4:00 p.m. on the same day as the Administrative Agent’s receipt of such notice from the Borrower. Each Revolving Lender shall make its Revolving Commitment(iv) Percentage of the requested Revolving Loan available to the Administrative Agent not later than 11:00 a.m. on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent’s Principal Office. Except as provided herein, upon satisfaction or waiver of the applicable conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Credit Extension available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all Loans received by the Administrative Agent in connection with the Credit Extension from the Revolving Lenders to be credited to the account of the Borrower at the Administrative Agent’s Principal Office or such other account as may be designated in writing to the Administrative Agent by the Borrower. Existing Term Loan. Pursuant to the Existing Agreement, the Term Lenders(c) thereunder have made Term Loans in the aggregate principal amount of the Term Commitment (the “Existing Term Loans”). Such Existing Term Loans shall continue to be outstanding under this Agreement as Term Loans. On the Closing Date, the Existing Term Loans by the Term Loan Lenders are as set forth on Appendix A attached hereto. Additional Term Loan. Any funding of any Additional Term Loan shall be as(d) provided, and subject to the terms and conditions set forth, in the applicable New Term Loan Amendment. 47

 

 

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Swingline Loans.Section 2.2 Swingline Loans Commitments. During the Revolving Commitment Period and(a) subject to the terms and conditions hereof, the Swingline Lender may, in its sole discretion, make Swingline Loans to the Borrower in the aggregate amount up to but not exceeding the Swingline Sublimit; provided, that after giving effect to the making of any Swingline Loan, in no event shall the Outstanding Amount of the Revolving Obligations exceed the Revolving Commitments then in effect. Amounts borrowed pursuant to this Section 2.2 may be repaid and reborrowed during the Revolving Commitment Period. The Swingline Lender’s Revolving Commitment shall expire on the Revolving Commitment Termination Date, all Swingline Loans and all other amounts owed hereunder with respect to the Swingline Loans and the Revolving Commitments shall be paid in full no later than such date, and no Swingline Loan shall be outstanding for more than ten (10) consecutive Business Days without the Swingline Lender’s express written consent. Borrowing Mechanics for Swingline Loans.(b) Whenever the Borrower desires that the Swingline Lender make a(i) Swingline Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice no later than 11:00 a.m. on the proposed Credit Date. The Swingline Lender shall make the amount of its Swingline Loan(ii) available to the Administrative Agent not later than 3:00 p.m. on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent’s Principal Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Swingline Loans available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Swingline Loans received by the Administrative Agent from the Swingline Lender to be credited to the account of the Borrower at the Administrative Agent’s Principal Office, or to such other account as may be designated in writing to the Administrative Agent by the Borrower. With respect to any Swingline Loans which have not been voluntarily(iii) prepaid by the Borrower pursuant to Section 2.11, the Swingline Lender may at any time in its sole and absolute discretion, deliver to the Administrative Agent (with a copy to the Borrower), no later than 11:00 a.m. on the day of the proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by a Borrower) requesting that each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the Borrower on such Credit Date in an amount equal to the amount of such Swingline Loans (the “Refunded Swingline Loans”) outstanding on the date such notice is given which the Swingline Lender requests Revolving Lenders to prepay. Anything contained in this Agreement to the contrary notwithstanding, (1) the proceeds of such Revolving Loans made by the Revolving Lenders other than the Swingline Lender shall be immediately delivered by the Administrative Agent to the Swingline Lender (and not to the Borrower) and applied to repay a corresponding portion of the Refunded Swingline Loans and (2) on the day such Revolving Loans are made, the Swingline Lender’s Revolving Commitment Percentage of the Refunded Swingline Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swingline Lender to the Borrower, and such portion of the Swingline Loans deemed to be so paid shall no longer be outstanding as Swingline Loans and shall no longer be due under the Swingline Note of the Swingline Lender but shall instead constitute part of the Swingline Lender’s 48

 

 

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outstanding Revolving Loans to the Borrower and shall be due under the Revolving Loan Note issued by the Borrower to the Swingline Lender. The Borrower hereby authorizes the Administrative Agent and the Swingline Lender to charge the Borrower’s accounts with the Administrative Agent and the Swingline Lender (up to the amount available in each such account) in order to immediately pay the Swingline Lender the amount of the Refunded Swingline Loans to the extent of the proceeds of such Revolving Loans made by the Revolving Lenders, including the Revolving Loans deemed to be made by the Swingline Lender, are insufficient to repay in full the Refunded Swingline Loans. If any portion of any such amount paid (or deemed to be paid) to the Swingline Lender should be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Revolving Lenders in the manner contemplated by Section 2.14. If for any reason Revolving Loans are not made pursuant to Section(iv) 2.2(b)(iii) in an amount sufficient to repay any amounts owed to the Swingline Lender in respect of any outstanding Swingline Loans on or before the third Business Day after demand for payment thereof by the Swingline Lender, each Lender holding a Revolving Commitment shall be deemed to, and hereby agrees to, have purchased a participation in such outstanding Swingline Loans, and in an amount equal to its Revolving Commitment Percentage of the applicable unpaid amount together with accrued interest thereon. On the Business Day that notice is provided by the Swingline Lender (or by the 11:00 a.m. on the following Business Day if such notice is provided after 2:00 p.m.), each Lender holding a Revolving Commitment shall deliver to the Swingline Lender an amount equal to its respective participation in the applicable unpaid amount in same day funds at the Principal Office of the Swingline Lender. In order to evidence such participation each Lender holding a Revolving Commitment agrees to enter into a participation agreement at the request of the Swingline Lender in form and substance reasonably satisfactory to the Swingline Lender. In the event any Lender holding a Revolving Commitment fails to make available to the Swingline Lender the amount of such Revolving Lender’s participation as provided in this paragraph, the Swingline Lender shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Swingline Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable. Notwithstanding anything contained herein to the contrary, (1) each(v) Revolving Lender’s obligation to make Revolving Loans for the purpose of repaying any Refunded Swingline Loans pursuant to clause (iii) above and each Revolving Lender’s obligation to purchase a participation in any unpaid Swingline Loans pursuant to the immediately preceding paragraph shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any set-off, counterclaim, recoupment, defense or other right which such Revolving Lender may have against the Swingline Lender, any Credit Party or any other Person for any reason whatsoever; (B) the occurrence or continuation of a Default or Event of Default; (C) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Credit Party; (D) any breach of this Agreement or any other Credit Document by any party thereto; or (E) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing; provided that such obligations of each Revolving Lender are subject to the condition that the Swingline Lender had not received prior notice from the Borrower or the Required Lenders that any of the conditions under Section 5.2 to the making of the applicable Refunded Swingline 49

 

 

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Loans or other unpaid Swingline Loans were not satisfied at the time such Refunded Swingline Loans or other unpaid Swingline Loans were made; and (2) the Swingline Lender shall not be obligated to make any Swingline Loans (A) if it has elected not to do so after the occurrence and during the continuation of a Default or Event of Default, or (B) it does not in good faith believe that all conditions under Section 5.2 to the making of such Swingline Loan have been satisfied or waived by the Required Lenders. Issuances of Letters of Credit and Purchase of Participations Therein.Section 2.3 Letters of Credit. During the Revolving Commitment Period, subject to the(a) terms and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower or any of its Subsidiaries in the aggregate amount up to but not exceeding the Letter of Credit Sublimit; provided, (i) each Letter of Credit shall be denominated in Dollars; (ii) the stated amount of each Letter of Credit shall not be less than $50,000 or such lesser amount as is acceptable to the Issuing Bank; (iii) after giving effect to such issuance, in no event shall the Outstanding Amount of the Revolving Obligations exceed the Revolving Commitments then in effect; (iv) after giving effect to such issuance, in no event shall the Outstanding Amount of the Letter of Credit Obligations exceed the Letter of Credit Sublimit then in effect; and (v) in no event shall any standby Letter of Credit have an expiration date later than the earlier of (1) seven (7) days prior to the Revolving Commitment Termination Date, and (2) the date which is one (1) year from the date of issuance of such standby Letter of Credit. Subject to the foregoing (other than clause (v)), the Issuing Bank may agree that a standby Letter of Credit will automatically be extended for one or more successive periods not to exceed one (1) year each, unless the Issuing Bank elects not to extend for any such additional period; provided, the Issuing Bank shall not extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing at the time the Issuing Bank must elect to allow such extension; provided, further, in the event that any Revolving Lender is at such time a Defaulting Lender, unless the Issuing Bank has entered into arrangements satisfactory to the Issuing Bank (in its sole discretion) with the Borrower or such Defaulting Lender to eliminate the Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender (after giving effect to Section 2.16(a)(iv) and any Cash Collateral provided by the Defaulting Lender), including by Cash Collateralizing such Defaulting Lender’s Revolving Commitment Percentage of the Outstanding Amount of the Letter of Credit Obligations in a manner reasonably satisfactory to the Administrative Agent, the Issuing Bank shall not be obligated to issue or extend any Letter of Credit hereunder. The Issuing Bank may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary. Notice of Issuance. Whenever the Borrower desires the issuance of a Letter of(b) Credit, the Borrower shall deliver to the Administrative Agent an Issuance Notice no later than 1:00 p.m. at least three (3) Business Days or such shorter period as may be agreed to by the Issuing Bank in any particular instance, in advance of the proposed date of issuance. Upon satisfaction or waiver of the conditions set forth in Section 5.2, an Issuing Bank shall issue the requested Letter of Credit only in accordance with the Issuing Bank’s standard operating procedures. Upon the issuance of any Letter of Credit or amendment or modification to a Letter of Credit, the Issuing Bank shall promptly notify the Administrative Agent and each Revolving Lender of such issuance, which notice shall be accompanied by a copy of such Letter of Credit or amendment or modification to a Letter of Credit and the amount of such Revolving Lender’s respective participation in such Letter of Credit pursuant to Section 2.3(e). 50

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Responsibility of Issuing Bank With Respect to Requests for Drawings and(c) Payments. In determining whether to honor any drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit. As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank, by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall not be responsible for: (i) the form, validity or invalidity, sufficiency or insufficiency, accuracy or inaccuracy, genuineness (including if fraudulent or forged) or legal effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit; (ii) the validity or invalidity, effectiveness or ineffectiveness or sufficiency or insufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part; (iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, the Issuing Bank’s rights or powers hereunder. Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to any Credit Party. Notwithstanding anything to the contrary contained in this Section 2.3(c), the Borrower shall retain any and all rights it may have against the Issuing Bank for any liability arising solely out of the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order. Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of(d) Credit. In the event an Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent, and the Borrower shall reimburse the Issuing Bank on or before the Business Day immediately following the date on which such drawing is honored (the “Reimbursement Date”) in an amount in Dollars and in same day funds equal to the amount of such honored drawing; provided, anything contained herein to the contrary notwithstanding, (i) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank prior to 11:00 a.m. on the date such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to the Administrative Agent requesting the Revolving Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (ii) subject to satisfaction or waiver of the conditions specified in Section 5.2, the Revolving Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored drawing; and provided further, if for any reason proceeds of Revolving Loans are not received by the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing, the Borrower shall reimburse the Issuing 51

 

 

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Bank, on demand, in an amount in same day funds equal to the excess of the amount of such honored drawing over the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this Section 2.3(d) shall be deemed to relieve any Revolving Lender from its obligation to make Revolving Loans on the terms and conditions set forth herein, and the Borrower shall retain any and all rights it may have against any Revolving Lender resulting from the failure of such Revolving Lender to make such Revolving Loans under this Section 2.3(d). Revolving Lenders’ Purchase of Participations in Letters of Credit. Immediately(e) upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Revolving Lender’s Revolving Commitment Percentage (with respect to the Revolving Commitments) of the maximum amount which is or at any time may become available to be drawn thereunder. In the event that the Borrower shall fail for any reason to reimburse an Issuing Bank as provided in Section 2.3(d), the Issuing Bank shall promptly notify each Revolving Lender of the unreimbursed amount of such honored drawing and of such Revolving Lender’s respective participation therein based on such Revolving Lender’s Revolving Commitment Percentage. Each Revolving Lender shall make available to the Issuing Bank an amount equal to its respective participation, in Dollars and in same day funds, at the office of the Issuing Bank specified in such notice, not later than 12:00 p.m. on the first Business Day (under the laws of the jurisdiction in which such office of the Issuing Bank is located) after the date notified by the Issuing Bank. In the event that any Revolving Lender fails to make available to the Issuing Bank on such Business Day the amount of such Revolving Lender’s participation in such Letter of Credit as provided in this Section 2.3(e), the Issuing Bank shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate. Nothing in this Section 2.3(e) shall be deemed to prejudice the right of any Revolving Lender to recover from the Issuing Bank any amounts made available by such Revolving Lender to the Issuing Bank pursuant to this Section in the event that it is determined that the payment with respect to a Letter of Credit in respect of which payment was made by such Revolving Lender constituted gross negligence or willful misconduct on the part of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order. In the event an Issuing Bank shall have been reimbursed by other Revolving Lenders pursuant to this Section 2.3(e) for all or any portion of any drawing honored by the Issuing Bank under a Letter of Credit, the Issuing Bank shall distribute to each Revolving Lender which has paid all amounts payable by it under this Section 2.3(e) with respect to such honored drawing such Revolving Lender’s Revolving Commitment Percentage of all payments subsequently received by the Issuing Bank from the Borrower in reimbursement of such honored drawing when such payments are received. Any such distribution shall be made to a Revolving Lender at its primary address set forth below its name on Appendix B or at such other address as such Revolving Lender may request. Obligations Absolute. The obligation of the Borrower to reimburse the Issuing(f) Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made by the Revolving Lenders pursuant to Section 2.3(d) and the obligations of the Revolving Lenders under Section 2.3(e) shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances: (i) any lack of validity or enforceability of any Letter of Credit; (ii) the existence of any claim, set-off, defense (other than that such drawing has been repaid) or other right which the Borrower or any Revolving Lender may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee may be 52

 

 

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acting), the Issuing Bank, a Revolving Lender or any other Person or, in the case of a Revolving Lender, against the Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or any of its Subsidiaries and the beneficiary for which any Letter of Credit was procured); (iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; (iv) payment by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does not substantially comply with the terms of such Letter of Credit; (v) any adverse change in the business, operations, properties, assets, or financial condition of the Borrower or any of its Subsidiaries; (vi) any breach hereof or any other Credit Document by any party thereto; (vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or (viii) the fact that an Event of Default or a Default shall have occurred and be continuing; provided, in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall not have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question, as determined by a court of competent jurisdiction in a final, non-appealable order. Indemnification. Without duplication of any obligation of the Credit Parties(g) under Section 11.2, in addition to amounts payable as provided herein, each of the Credit Parties hereby agrees, on a joint and several basis, to protect, indemnify, pay and save harmless the Issuing Bank from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable and documented out-of-pocket fees, expenses and disbursements of counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of (i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of (1) the gross negligence or willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction in a final, non-appealable order, or (2) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it, or (ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act. Applicability of ISP. Unless otherwise expressly agreed by the Issuing Bank and(h) the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to such Letter of Credit. Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit(i) issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of the Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries. Pro Rata Shares; Availability of Funds.Section 2.4 Pro Rata Shares. All Loans shall be made, and all participations purchased, by(a) the Lenders simultaneously and proportionately to their respective pro rata shares of the Loans, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender’s obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Revolving Commitment, or the portion of the aggregate outstanding principal amount of the Revolving Loans, of any Revolving Lender be increased or decreased as a result of a default by any other Revolving Lender in such other Revolving 53

 

 

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Lender’s obligation to make a Revolving Loan requested hereunder or purchase a participation required hereby. Availability of Funds.(b) Funding by Lenders; Presumption by Administrative Agent. Unless the(i) Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing (or, in the case of any Borrowing of Base Rate Loans or Daily Simple SOFR Loans, prior to 12:00 noon on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.1(b) or, in the case of a Borrowing of Base Rate Loans or Daily Simple SOFR Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.1(b) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans, plus, in either case, any administrative, processing or similar fees customarily charged by the Administrative Agent in connection therewith. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent. Payments by the Borrower; Presumptions by Administrative Agent.(ii) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or each applicable Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or each applicable Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the Issuing Bank, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the 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. 54

 

 

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Notices given by the Administrative Agent under this subsection (b) shall be conclusive absent manifest error. Evidence of Debt; Register; Lenders’ Books and Records; Notes.Section 2.5 Lenders’ Evidence of Debt. Each Lender shall maintain on its internal records(a) an account or accounts evidencing the Obligations of the Borrower and each other Credit Party to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; provided, that the failure to make any such recordation, or any error in such recordation, shall not affect any Lender’s Commitment or the Borrower’s obligations in respect of any applicable Loans; and provided, further, in the event of any inconsistency between the Register and any Lender’s records, the recordations in the Register shall govern in the absence of demonstrable error therein. Notes. The Borrower shall execute and deliver to (i) each Lender on the(b) Effective Date, (ii) each Person who is a permitted assignee of such Lender pursuant to Section 11.5, and (iii) each Person who becomes a Lender in accordance with Section 2.19, in each case to the extent requested by such Person, a Note or Notes to evidence such Person’s portion of the Revolving Loans or, Existing Term Loan and/or Additional Term Loans, as applicable. Scheduled Principal Payments.Section 2.6 Revolving Loans. The principal amount of Revolving Loans is due and payable(a) in full on the Revolving Maturity Date. Swingline Loans. The principal amount of the Swingline Loans is due and(b) payable in full on the earlier to occur of (i) the date of demand by the Swingline Lender and (ii) the Revolving Maturity Date. Term LoanLoans. The principal amount of the Existing Term Loan and any(c) Additional Term Loan is due and payable in full on the applicable Term Maturity Date. Interest on Loans.Section 2.7 Except as otherwise set forth herein, each Loan shall bear interest on the unpaid(a) principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows: in the case of Revolving Loans:(i) if a Base Rate Loan (including a Base Rate Loan referencing(A) the LIBOR RateAdjusted Term SOFR), the Base Rate plus the Applicable Margin for Revolving Loans that are Base Rate Loans; or if an LIBOR Ratea Daily Simple SOFR Loan, the LIBOR(B) RateAdjusted Daily Simple SOFR plus the Applicable Margin for Revolving Loans that are LIBOR RateSOFR Loans; or if a Term SOFR Loan, Adjusted Term SOFR plus the(C) Applicable Margin for Revolving Loans that are SOFR Loans; 55

 

 

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in the case of Swingline Loans, at the Swingline Rate; and(ii) in the case of the Existing Term Loan:(iii) if the then outstanding portion of the Term Loan is a Base Rate(A) Loan (including a Base Rate Loan referencing the LIBOR RateAdjusted Term SOFR), the Base Rate plus the Applicable Margin for Term Loans that are Base Rate Loans; or if a Daily Simple SOFR Loan, Adjusted Daily Simple SOFR(B) plus the Applicable Margin for Term Loans that are SOFR Loans; if a Term SOFR Loan, Adjusted Term SOFR plus the(C) Applicable Margin for Term Loans that are SOFR Loans; (B) ifin the then outstanding portioncase of theany Additional Term(iv) Loan is an LIBOR: if a Base Rate Loan (including a Base Rate Loan referencing(A) Adjusted Term SOFR), the LIBORBase Rate plus the Applicable Margin for Additional Term Loans that are LIBORBase Rate Loans.; if a Daily Simple SOFR Loan, Adjusted Daily Simple SOFR(B) plus the Applicable Margin for Additional Term Loans that are SOFR Loans; if a Term SOFR Loan, Adjusted Term SOFR plus the(C) Applicable Margin for Additional Term Loans that are SOFR Loans; The basis for determining the rate of interest with respect to any Loan (except a(b) Swingline Loan, which may only be made and maintained at the Swingline Rate (unless and until converted into a Revolving Loan pursuant to the terms and conditions hereof)), and the Interest Period with respect to any LIBOR RateTerm SOFR Loan, shall be selected by the Borrower and notified to the Administrative Agent and the Lenders pursuant to the applicable Funding Notice or Conversion/Continuation Notice, as the case may be. If on any day a Loan is outstanding with respect to which a Funding Notice or Conversion/Continuation Notice has not been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day (i) if such Loan is an LIBOR Ratea Term SOFR Loan, such Loan shall become a Base Rate Loan and (ii) if such Loan is a Base Rate Loan or a Daily Simple SOFR Loan, such Loan shall remain a Base Rate Loan or a Daily Simple SOFR Loan, as applicable. In connection with LIBOR RateTerm SOFR Loans, there shall be no more than(c) twelve (12) Interest Periods outstanding at any time. In the event the Borrower fails to specify betweenamong a Base Rate Loan or an LIBOR Rate, a Daily Simple SOFR Loan or a Term SOFR Loan in the applicable Funding Notice or Conversion/Continuation Notice, such Loan (i) if outstanding as an LIBOR Ratea Term SOFR Loan, shall be automatically converted into a Base Rate Loan on the last day of the then-current Interest Period for such Loan, and (ii) if outstanding as a Base Rate Loan or a Daily Simple SOFR Loan, will remain as, or (if not then outstanding) will be made as, a Base Rate Loan or a Daily Simple SOFR Loan, as applicable. In the event the Borrower fails to specify an Interest Period for any LIBOR RateTerm SOFR Loan in the applicable Funding Notice or Conversion/Continuation Notice, the Borrower shall be 56

 

 

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d e e m e d t o h a v e s e l e c t e d a n I n t e r e s t P e r i o d o f o n e ( 1 ) m o n t h. I n t h e e v e n t t h e B o r r o w e r fa i l s t o s p e c i fy i n t h e ap p l i c a b l e F u n d i n g N o t i c e o r C o n v e r s i o n / C o n t i n u a t i o n N o t i c e w h e t h e r a n y S O F R L o a n s h a l l b e a D a i l y S i m p l e S O F R L o a n o r a Te r m S O F R L o a n, t h e B o r r o w e r s h a l l b e d e e m e d t o h a v e s e l e c t e d a B o r r o w i n g o f a D a i l y S i m p l e S O F R L o a n. A s s o o n a s p r a c t i c a b l e a ft e r 1 0:0 0 a.m. o n e a c h I n t e r e s t R a t e D e t e r m i n a t i o n D a t e, t h e A d m i n i s t r a t i v e A g e n t s h a l l d e t e r m i n e ( w h i c h d e t e r m i n a t i o n s h a l l, a b s e n t m a n i fe s t e rr o r, b e fi n a l, c o n c l u s i v e a n d b i n d i n g up o n a l l p a r t i e s ) t h e i n t e r e s t r a t e t h a t s h a l l ap p l y t o e a c h o f t h e L I B O R R a t e Te r m S O F R L o a n s fo r w h i c h a n i n t e r e s t r a t e i s t h e n b e i n g d e t e r m i n e d ( a n d fo r t h e ap p l i c a b l e I n t e r e s t P e r i o d i n t h e c a s e o f L I B O R R a t e Te r m S O F R L o a n s ) a n d s h a l l p r o m p t l y g i v e n o t i c e t h e r e o f ( i n w r i t i n g o r b y t e l e p h o n e c o n fi r m e d i n w r i t i n g ) t o t h e B o r r o w e r a n d e a c h L e n d e r. A s s o o n a s p r a c t i c a b l e a ft e r 1 0:0 0 a.m. o n e a c h S O F R D e t e r m i n a t i o n D a t e, t h e A d m i n i s t r a t i v e A g e n t s h a l l d e t e r m i n e ( w h i c h d e t e r m i n a t i o n s h a l l, a b s e n t m a n i fe s t e r r o r, b e fi n a l, c o n c l u s i v e a n d b i n d i n g up o n a l l p a r t i e s ) t h e i n t e r e s t r a t e t h a t s h a l l ap p l y t o e a c h o f t h e D a i l y S i m p l e S O F R L o a n s fo r w h i c h a n i n t e r e s t r a t e i s t h e n b e i n g d e t e r m i n e d a n d s h a l l p r o m p t l y g i v e n o t i c e t h e r e o f ( i n w r i t i n g o r b y t e l e p h o n e c o n fi r m e d i n w r i t i n g ) t o t h e B o r r o w e r a n d e a c h L e n d e r. I n t e r e s t p a y a b l e p u r s u a n t t o t h i s S e c t i o n 2.7 s h a l l b e c o m p u t e d o n t h e b a s i s o f ( i ) ( d ) fo r i n t e r e s t a t t h e B a s e R a t e o r t h e S w i n g l i n e R a t e, a 3 6 5 - d a y o r 3 6 6 - d a y y e a r, a s t h e c a s e m a y b e, a n d ( i i ) fo r a l l o t h e r c o m p u t a t i o n s o f fe e s a n d i n t e r e s t, a 3 6 0 - d a y y e a r, i n e a c h c a s e, fo r t h e a c tu a l n u m b e r o f d a y s e l ap s e d i n t h e p e r i o d du r i n g w h i c h i t a c c ru e s. I n c o m p u t i n g i n t e r e s t o n a n y L o a n, t h e d a t e o f t h e m a k i n g o f s u c h L o a n o r t h e fi r s t d a y o f a n I n t e r e s t P e r i o d ap p l i c a b l e t o s u c h L o a n o r, w i t h r e s p e c t t o a B a s e R a t e L o a n o r D a i l y S i m p l e S O F R L o a n b e i n g c o n v e r t e d fr o m a L I B O R R a t e Te r m S O F R L o a n, t h e d a t e o f c o n v e r s i o n o f s u c h L I B O R R a t e Te r m S O F R L o a n t o s u c h B a s e R a t e L o a n o r D a i l y S i m p l e S O F R L o a n, a s t h e c a s e m a y b e, s h a l l b e i n c l u d e d, a n d t h e d a t e o f p a y m e n t o f s u c h L o a n o r t h e e x p i r a t i o n d a t e o f a n I n t e r e s t P e r i o d ap p l i c a b l e t o s u c h L o a n o r, w i t h r e s p e c t t o a B a s e R a t e L o a n o r a D a i l y S i m p l e S O F R L o a n b e i n g c o n v e r t e d t o a L I B O R R a t e Te r m S O F R L o a n, t h e d a t e o f c o n v e r s i o n o f s u c h B a s e R a t e L o a n o r D a i l y S i m p l e S O F R L o a n t o s u c h L I B O R R a t e Te r m S O F R L o a n, a s t h e c a s e m a y b e, s h a l l b e e x c l u d e d; p r o v i d e d, i f a L o a n i s r e p a i d o n t h e s a m e d a y o n w h i c h i t i s m a d e, o n e ( 1 ) d a y’s i n t e r e s t s h a l l b e p a i d o n t h a t L o a n. [ R e s e r v e d ].( e ) E x c e p t a s o t h e rw i s e s e t fo r t h h e r e i n, i n t e r e s t o n e a c h L o a n s h a l l a c c ru e o n a ( f) d a i l y b a s i s a n d s h a l l b e p a y a b l e i n a rr e a r s o n a n d t o ( i ) e a c h I n t e r e s t P a y m e n t D a t e ap p l i c a b l e t o t h a t L o a n; ( i i ) up o n a n y p r e p a y m e n t o f t h a t L o a n ( o t h e r t h a n a v o l u n t a r y p r e p a y m e n t o f a R e v o l v i n g L o a n w h i c h i n t e r e s t s h a l l b e p a y a b l e i n a c c o r d a n c e w i t h c l a u s e ( i ) a b o v e ), t o t h e e x t e n t a c c ru e d o n t h e a m o u n t b e i n g p r e p a i d; a n d ( i i i ) a t m a tu r i t y, i n c l u d i n g fi n a l m a tu r i t y. T h e B o r r o w e r a g r e e s t o p a y t o t h e I s s u i n g B a n k, w i t h r e s p e c t t o d r a w i n g s ( g ) h o n o r e d u n d e r a n y L e t t e r o f C r e d i t i s s u e d b y t h e I s s u i n g B a n k, i n t e r e s t o n t h e a m o u n t p a i d b y t h e I s s u i n g B a n k i n r e s p e c t o f e a c h s u c h h o n o r e d d r a w i n g fr o m t h e d a t e s u c h d r a w i n g i s h o n o r e d t o b u t e x c l u d i n g t h e d a t e s u c h a m o u n t i s r e i m b u r s e d b y o r o n b e h a l f o f t h e B o r r o w e r a t a r a t e e q u a l t o ( i ) fo r t h e p e r i o d fr o m t h e d a t e s u c h d r a w i n g i s h o n o r e d t o b u t e x c l u d i n g t h e ap p l i c a b l e R e i m b u r s e m e n t D a t e, t h e r a t e o f i n t e r e s t o t h e r w i s e p a y a b l e h e r e u n d e r w i t h r e s p e c t t o R e v o l v i n g L o a n s t h a t a r e B a s e R a t e L o a n s, a n d ( i i ) t h e r e a ft e r, a r a t e w h i c h i s t h e l e s s e r o f ( y ) t w o p e r c e n t ( 2 % ) p e r a n n u m i n e x c e s s o f t h e r a t e o f i n t e r e s t o t h e rw i s e p a y a b l e h e r e u n d e r w i t h r e s p e c t t o R e v o l v i n g L o a n s t h a t a r e B a s e R a t e L o a n s, a n d ( z ) t h e H i g h e s t L a w fu l R a t e. I n t e r e s t p a y a b l e p u r s u a n t t o S e c t i o n 2.7 ( g ) s h a l l b e c o m p u t e d o n t h e b a s i s o f a ( h ) 3 6 5 - d a y o r 3 6 6 - d a y y e a r, a s t h e c a s e m a y b e, fo r t h e a c tu a l n u m b e r o f d a y s e l ap s e d i n t h e p e r i o d 5 7

 

 

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during which it accrues, and shall be payable on demand or, if no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon receipt by the Issuing Bank of any payment of interest pursuant to Section 2.7(g), the Issuing Bank shall distribute to each Revolving Lender, out of the interest received by the Issuing Bank in respect of the period from the date such drawing is honored to but excluding the date on which the Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds of any Revolving Loans), the amount that such Revolving Lender would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period if no drawing had been honored under such Letter of Credit. In the event the Issuing Bank shall have been reimbursed by the Revolving Lenders for all or any portion of such honored drawing, the Issuing Bank shall distribute to each Revolving Lender which has paid all amounts payable by it under Section 2.3(e) with respect to such honored drawing such Revolving Lender’s Revolving Commitment Percentage of any interest received by the Issuing Bank in respect of that portion of such honored drawing so reimbursed by the Revolving Lenders for the period from the date on which the Issuing Bank was so reimbursed by the Revolving Lenders to but excluding the date on which such portion of such honored drawing is reimbursed by the Borrower. Conversion/Continuation.Section 2.8 So long as no Default or Event of Default shall have occurred and then be(a) continuing or would result therefrom, the Borrower shall have the option: to convert at any time all or any part of any Loan equal to $100,000 and(i) integral multiples of $50,000 in excess of that amount from one Type of Loan to another Type of Loan; provided, an LIBOR Ratea Term SOFR Loan may only be converted on the expiration of the Interest Period applicable to such LIBOR RateTerm SOFR Loan unless the Borrower shall pay all amounts due under Section 2.15 in connection with any such conversion; or upon the expiration of any Interest Period applicable to any LIBOR(ii) RateTerm SOFR Loan, to continue all or any portion of such Loan as an LIBOR Ratea Term SOFR Loan. The Borrower shall deliver a Conversion/Continuation Notice to the(b) Administrative Agent no later than 1:00 p.m. at least three (3) Business Days in advance of the proposed Conversion/Continuation Date (or such later time as the Administrative Agent may agree). Except as otherwise provided herein, a Conversion/Continuation Notice for conversion to, or continuation of, any LIBOR RateTerm SOFR Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith. Default Rate of Interest.Section 2.9 If any amount of principal of any Loan is not paid when due, whether at stated(a) maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws. 58

 

 

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If any amount (other than principal of any Loan) payable by the Borrower under(b) any Credit Document is not paid when due (after the expiration of any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then at the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws. During the continuance of an Event of Default under Section 9.1(f) or Section(c) 9.1(g), the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws. During the continuance of an Event of Default other than an Event of Default(d) under Section 9.1(f) or Section 9.1(g), the Borrower shall, at the request of the Required Lenders, pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Laws. Accrued and unpaid interest on past due amounts (including interest on past due(e) interest) shall be due and payable upon demand. In the case of any LIBOR RateTerm SOFR Loan, upon the expiration of the(f) Interest Period in effect at the time the Default Rate of interest is effective, each such LIBOR RateTerm SOFR Loan shall thereupon become a Base Rate Loan and shall thereafter bear interest at the Default Rate then in effect for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in this Section 2.9 is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender. Fees.Section 2.10 [Reserved].(a) Facility Fee. The Borrower shall pay to the Administrative Agent for the(b) account of each Revolving Lender in accordance with its Revolving Commitment Percentage, a facility fee (the “Facility Fee”) equal to the product of (x) the applicable Facility Fee Rate based on the Borrower’s Investment Grade Rating as set forth in the Investment Grade Pricing Grid multiplied by (y) the actual daily amount of the Aggregate Revolving Commitments, subject to adjustments as provided in Section 2.16. The Facility Fee shall accrue at all such times during the Revolving Commitment Period, including at any time during which one or more of the conditions in Section 5 is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Effective Date, and on the Revolving Commitment Termination Date; provided that (1) no Facility Fee shall accrue on the Revolving Commitment of a Defaulting Lender so long as such Revolving Lender shall be a Defaulting Lender and (2) any Facility Fee accrued with respect to the Revolving Commitment of a Defaulting Lender during the period prior to the time such Revolving Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower so long as such Revolving Lender shall be a Defaulting Lender. As and when applicable hereunder, the Facility Fee shall be calculated quarterly in arrears, and if there is any change in the Facility Fee Rate during any quarter, the actual daily amount shall be computed and multiplied by the Facility Fee Rate separately for each period during such quarter that such Facility Fee Rate was in effect. 59

 

 

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L e t t e r o f C r e d i t F e e s.( c ) C o m m e r c i a l a n d S t a n db y L e t t e r o f C r e d i t F e e s. T h e B o r r o w e r s h a l l p a y ( i ) t o t h e A d m i n i s t r a t i v e A g e n t fo r t h e a c c o u n t o f e a c h R e v o l v i n g L e n d e r i n a c c o r d a n c e w i t h i t s R e v o l v i n g C o m m i t m e n t P e r c e n t a g e a L e t t e r o f C r e d i t fe e fo r e a c h s t a n db y L e t t e r o f C r e d i t e q u a l t o t h e A p p l i c a b l e M a r g i n fo r L e t t e r s o f C r e d i t m u l t i p l i e d b y t h e d a i l y m a x i m u m a m o u n t a v a i l a b l e t o b e d r a w n u n d e r s u c h L e t t e r o f C r e d i t ( c o l l e c t i v e l y, t h e “ L e t t e r o f C r e d i t F e e s ” ). F o r p u rp o s e s o f c o m p u t i n g t h e d a i l y a m o u n t a v a i l a b l e t o b e d r a w n u n d e r a n y L e t t e r o f C r e d i t, t h e a m o u n t o f s u c h L e t t e r o f C r e d i t s h a l l b e d e t e r m i n e d i n a c c o r d a n c e w i t h S e c t i o n 1.3 ( i ). T h e L e t t e r o f C r e d i t F e e s s h a l l b e c o m p u t e d o n a q u a r t e r l y b a s i s i n a rr e a r s, a n d s h a l l b e du e a n d p a y a b l e o n t h e l a s t B u s i n e s s D a y o f e a c h M a r c h, J u n e, S e p t e m b e r a n d D e c e m b e r, c o m m e n c i n g w i t h t h e fi r s t s u c h d a t e t o o c c u r a ft e r t h e i s s u a n c e o f s u c h L e t t e r o f C r e d i t, o n t h e e x p i r a t i o n d a t e t h e r e o f a n d t h e r e a ft e r o n d e m a n d; p r o v i d e d t h a t ( 1 ) n o L e t t e r o f C r e d i t F e e s s h a l l a c c ru e i n fa v o r o f a D e fa u l t i n g L e n d e r s o l o n g a s s u c h R e v o l v i n g L e n d e r s h a l l b e a D e fa u l t i n g L e n d e r a n d ( 2 ) a n y L e t t e r o f C r e d i t F e e s a c c ru e d i n fa v o r o f a D e fa u l t i n g L e n d e r du r i n g t h e p e r i o d p r i o r t o t h e t i m e s u c h R e v o l v i n g L e n d e r b e c a m e a D e fa u l t i n g L e n d e r a n d u n p a i d a t s u c h t i m e s h a l l n o t b e p a y a b l e b y t h e B o r r o w e r s o l o n g a s s u c h R e v o l v i n g L e n d e r s h a l l b e a D e fa u l t i n g L e n d e r. I f t h e r e i s a n y c h a n g e i n t h e A p p l i c a b l e M a r g i n du r i n g a n y q u a r t e r, t h e d a i l y m a x i m u m a m o u n t a v a i l a b l e t o b e d r a w n u n d e r e a c h s t a n db y L e t t e r o f C r e d i t s h a l l b e c o m p u t e d a n d m u l t i p l i e d b y t h e A p p l i c a b l e M a r g i n s e p a r a t e l y fo r e a c h p e r i o d du r i n g s u c h q u a r t e r t h a t s u c h A p p l i c a b l e M a r g i n w a s i n e ffe c t. N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a ry c o n t a i n e d h e r e i n, du r i n g t h e c o n t i n u a n c e o f a n E v e n t o f D e fa u l t u n d e r S e c t i o n s 9.1 ( f) a n d ( g ), a l l L e t t e r o f C r e d i t F e e s s h a l l a c c ru e a t t h e D e fa u l t R a t e, a n d du r i n g t h e c o n t i n u a n c e o f a n E v e n t o f D e fa u l t o t h e r t h a n a n E v e n t o f D e fa u l t u n d e r S e c t i o n s 9.1 ( f) o r ( g ), t h e n up o n t h e r e q u e s t o f t h e R e q u i r e d R e v o l v i n g L e n d e r s, a l l L e t t e r o f C r e d i t F e e s s h a l l a c c ru e a t t h e D e fa u l t R a t e. F r o n t i n g F e e a n d D o c u m e n t a ry a n d P r o c e s s i n g C h a r g e s P a y a b l e t o ( i i ) I s s u i n g B a n k. T h e B o r r o w e r s h a l l p a y d i r e c t l y t o t h e I s s u i n g B a n k fo r i t s o w n a c c o u n t, o n a q u a r t e r l y b a s i s i n a rr e a r s, a fr o n t i n g fe e w i t h r e s p e c t t o e a c h L e t t e r o f C r e d i t, e q u a l t o t h e g r e a t e r o f ( x ) a r a t e p e r a n n u m o f 0.1 2 5 % m u l t i p l i e d b y t h e a v e r a g e d a i l y a m o u n t a v a i l a b l e t o b e d r a w n u n d e r s u c h L e t t e r o f C r e d i t a n d ( y ) $ 1,5 0 0. S u c h fr o n t i n g fe e s h a l l b e du e a n d p a y a b l e o n t h e l a s t B u s i n e s s D a y o f e a c h M a r c h, J u n e, S e p t e m b e r a n d D e c e m b e r i n r e s p e c t o f t h e m o s t r e c e n t l y e n d e d q u a r t e r l y p e r i o d ( o r p o r t i o n t h e r e o f, i n t h e c a s e o f t h e fi r s t p a y m e n t ), c o m m e n c i n g w i t h t h e fi r s t s u c h d a t e t o o c c u r a ft e r t h e i s s u a n c e o f s u c h L e t t e r o f C r e d i t, o n i t s e x p i r a t i o n d a t e a n d t h e r e a ft e r o n d e m a n d. F o r p u rp o s e s o f c o m p u t i n g t h e d a i l y a m o u n t a v a i l a b l e t o b e d r a w n u n d e r a n y L e t t e r o f C r e d i t, t h e a m o u n t o f s u c h L e t t e r o f C r e d i t s h a l l b e d e t e r m i n e d i n a c c o r d a n c e w i t h S e c t i o n 1.3 ( i ). I n a d d i t i o n, t h e B o r r o w e r s h a l l p a y d i r e c t l y t o t h e I s s u i n g B a n k fo r i t s o w n a c c o u n t t h e c u s t o m a r y i s s u a n c e, p r e s e n t a t i o n, a m e n d m e n t, r e n e w a l, n e g o t i a t i o n a n d o t h e r p r o c e s s i n g fe e s, a n d o t h e r s t a n d a r d c o s t s a n d c h a r g e s, o f t h e I s s u i n g B a n k r e l a t i n g t o l e t t e r s o f c r e d i t a s fr o m t i m e t o t i m e i n e ffe c t. S u c h c u s t o m a r y fe e s a n d s t a n d a r d c o s t s a n d c h a r g e s a r e du e a n d p a y a b l e o n d e m a n d a n d a r e n o n r e fu n d a b l e. O t h e r F e e s. T h e B o r r o w e r s h a l l p a y t o L e a d A r r a n g e r s, C o - S y n d i c a t i o n A g e n t s,( d ) a n d t h e A d m i n i s t r a t i v e A g e n t, fo r t h e i r o w n r e s p e c t i v e a c c o u n t s, fe e s i n t h e a m o u n t s a n d a t t h e t i m e s s p e c i fi e d i n t h e F e e L e t t e r. S u c h fe e s s h a l l b e fu l l y e a rn e d w h e n p a i d a n d s h a l l n o t b e r e fu n d a b l e fo r a n y r e a s o n w h a t s o e v e r, e x c e p t t o t h e e x t e n t s e t fo r t h i n t h e F e e L e t t e r. P r e p a y m e n t s / C o m m i t m e n t R e du c t i o n s.S e c t i o n 2.1 1 6 0

 

 

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Voluntary Prepayments.(a) Any time and from time to time, the Loans may be repaid in whole or in(i) part, with respect to the Revolving Loans and, the Existing Term Loan and any Additional Term Loan, without premium or penalty (subject to Section 3.1): with respect to Base Rate Loans (including Base Rate Loans(A) referencing the LIBOR RateAdjusted Term SOFR), the Borrower may prepay any such Loans on any Business Day in whole or in part, in an aggregate minimum amount of $250,000 and integral multiples of $100,000 in excess of that amount; with respect to LIBOR RateSOFR Loans, the Borrower may(B) prepay any such Loans on any Business Day in whole or in part (together with any amounts due pursuant to Section 3.1(c)) in an aggregate minimum amount of $250,000 and integral multiples of $100,000 in excess of that amount; and with respect to Swingline Loans, the Borrower may prepay any(C) such Loans on any Business Day in whole or in part in any amount; All such prepayments shall be made:(ii) upon written or telephonic notice on the date of prepayment in(A) the case of Base Rate Loans or Swingline Loans; and upon not less than three (3) Business Days’ prior written or(B) telephonic notice in the case of LIBOR RateSOFR Loans; in each case given to the Administrative Agent, or the Swingline Lender, as the case may be, by 11:00 a.m. on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for a prepayment by telefacsimile or telephone to each Revolving Lender or Term Lender, as applicable). Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in Section 2.12(a). Voluntary Revolving Commitment Reductions.(b) The Borrower may, from time to time upon not less than three (3)(i) Business Days’ prior written or telephonic notice confirmed in writing to the Administrative Agent (which original written or telephonic notice the Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Revolving Lender), at any time and from time to time terminate in whole or permanently reduce in part (i) the Revolving Commitments (ratably among the Revolving Lenders in accordance with their respective commitment percentageRevolving Commitment Percentage thereof); provided, (A) any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount, (B) the Borrower shall not terminate or reduce the Aggregate Revolving Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the aggregate Outstanding Amount exceed the Aggregate Revolving Commitments and (C) if, after giving effect to any reduction of the 61

 

 

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Aggregate Revolving Commitments, the Letter of Credit Sublimit and/or the Swingline Sublimit exceed the amount of the Aggregate Revolving Commitments, the Letter of Credit Sublimit and/or the Swingline Sublimit, as applicable, shall be automatically reduced by the amount of such excess. The Borrower’s notice to the Administrative Agent shall designate the(ii) date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Revolving Commitments shall be effective on the date specified in the Borrower’s notice and shall reduce the Revolving Commitments of each Revolving Lender proportionately to its Revolving Commitment Percentage thereof. Mandatory Prepayments; Excess Outstanding Amounts. If at any time (A) the(c) Outstanding Amount of Revolving Obligations shall exceed the Aggregate Revolving Commitments (B) the Outstanding Amount of Letter of Credit Obligations shall exceed the Letter of Credit Sublimit, or (C) the Outstanding Amount of Swingline Loans shall exceed the Swingline Sublimit, immediate prepayment will be made on or in respect of the Revolving Obligations in an amount equal to such excess; provided, however, that, except with respect to clause (B), Letter of Credit Obligations will not be Cash Collateralized hereunder until the Revolving Loans and Swingline Loans have been paid in full. Application of Prepayments.Section 2.12 Within each Loan, prepayments will be applied first to Base Rate Loans, then to LIBOR RateDaily Simple SOFR Loans, and then to Term SOFR Loans in direct order of Interest Period maturities. In addition: Voluntary Prepayments. Voluntary prepayments will be applied as specified by(a) the Borrower. Mandatory Prepayments. Mandatory prepayments under Section 2.11(c) above(b) shall be applied to the respective Revolving Obligations, as appropriate, but without a permanent reduction of the aggregate Revolving Commitments and shall be available for re-borrowing in accordance with the terms hereof and of the other Credit Documents. Prepayments on the Revolving Obligations will be paid by the Administrative(c) Agent to the Revolving Lenders ratably in accordance with their respective interests therein (except for Defaulting Lenders where their share will be applied as provided in Section 2.16(a) hereof). General Provisions Regarding Payments.Section 2.13 All payments by the Borrower of principal, interest, fees and other Obligations(a) hereunder or under any other Credit Document shall be made in Dollars in immediately available funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition. The Administrative Agent shall, and the Borrower hereby authorizes the Administrative Agent to, debit a deposit account of the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates and designated for such purpose by the Borrower or such Subsidiary in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or under any other Credit Document (subject to sufficient funds being available in its accounts for that purpose). 62

 

 

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In the event that the Administrative Agent is unable to debit a deposit account of(b) the Borrower or any of its Subsidiaries held with the Administrative Agent or any of its Affiliates in order to cause timely payment to be made to the Administrative Agent of all principal, interest and fees due hereunder or any other Credit Document (including because insufficient funds are available in its accounts for that purpose), payments hereunder and under any other Credit Document shall be delivered to the Administrative Agent, for the account of the Lenders, not later than 2:00 p.m. on the date due at the Principal Office of the Administrative Agent or via wire transfer of immediately available funds to an account designated by the Administrative Agent (or at such other location as may be designated in writing by the Administrative Agent from time to time); for purposes of computing interest and fees, funds received by the Administrative Agent after that time on such due date shall be deemed to have been paid by the Borrower on the next Business Day. All payments in respect of the principal amount of any Loan (other than(c) voluntary repayments of Revolving Loans) shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Loan on a date when interest is due and payable with respect to such Loan) shall be applied to the payment of interest then due and payable before application to principal. The Administrative Agent shall promptly distribute to each Lender at such(d) address as such Lender shall indicate in writing, such Lender’s applicable pro rata share of all payments and prepayments of principal and interest due to such Lender hereunder, together with all other amounts due with respect thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent. Notwithstanding the foregoing provisions hereof, if any(e) Conversion/Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its pro rata share of any LIBOR RateSOFR Loans, the Administrative Agent shall give effect thereto in apportioning payments received thereafter. Subject to the provisos set forth in the definition of “Interest Period,” whenever(f) any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder or of the Facility Fee hereunder, but such payment shall be deemed to have been made on the date therefor for all other purposes hereunder. The Administrative Agent may, but shall not be obligated to, deem any payment(g) by or on behalf of the Borrower hereunder that is not made in same day funds prior to 2:00 p.m. to be a non-conforming payment. Any such payment shall not be deemed to have been received by the Administrative Agent until the later of (i) the time such funds become available funds, and (ii) the applicable next Business Day. The Administrative Agent shall give prompt telephonic notice to the Borrower and each applicable Lender (confirmed in writing) if any payment is non-conforming. Any non-conforming payment may constitute or become a Default or Event of Default in accordance with the terms of Section 9.1(a). Interest shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event less than the period from the date of such payment to the next succeeding applicable Business Day) at the Default Rate (unless otherwise provided by the Required Lenders) from the date such amount was due and payable until the date such amount is paid in full. 63

 

 

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Sharing of Payments by Lenders. If any Lender shall, by exercising any right ofSection 2.14 setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; provided that: if any such participations are purchased and all or any portion of the(i) 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 the provisions of this Section shall not be construed to apply to (A) any(ii) payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), (B) any amounts applied by the Swingline Lender to outstanding Swingline Loans, (C) any amounts applied to Letter of Credit Obligations by the Issuing Bank or Swingline Loans by the Swingline Lender, as appropriate, from Cash Collateral provided under Section 2.15 or Section 2.16, or (D) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in Letter of Credit Obligations, Swingline Loans or other obligations hereunder to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall apply). Each of the Credit Parties consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation. Cash Collateral. At any time that there shall exist a Defaulting Lender, withinSection 2.15 one (1) Business Day following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender in an amount sufficient to cover the applicable Fronting Exposure (after giving effect to Section 2.16(a)(iv) and any Cash Collateral provided by the Defaulting Lender). Grant of Security Interest. The Borrower, and to the extent provided by any(a) Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a perfected first priority security interest in all such Cash Collateral as security for the Defaulting Lenders’ obligation to fund participations in respect of Letter of Credit Obligations, to be applied pursuant to clause (b) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein provided (other than the Permitted Liens), or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount 64

 

 

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s u ffi c i e n t t o e l i m i n a t e s u c h d e fi c i e n c y ( a ft e r g i v i n g e ffe c t t o a n y C a s h C o l l a t e r a l p r o v i d e d b y t h e D e fa u l t i n g L e n d e r ). A p p l i c a t i o n. N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a ry c o n t a i n e d i n t h i s ( b ) A g r e e m e n t, C a s h C o l l a t e r a l p r o v i d e d u n d e r t h i s S e c t i o n 2.1 5 o r S e c t i o n 2.1 6 i n r e s p e c t o f L e t t e r s o f C r e d i t s h a l l b e ap p l i e d t o t h e s a t i s fa c t i o n o f t h e D e fa u l t i n g L e n d e r’s o b l i g a t i o n t o fu n d p a r t i c i p a t i o n s i n r e s p e c t o f L e t t e r o f C r e d i t O b l i g a t i o n s ( i n c l u d i n g, a s t o C a s h C o l l a t e r a l p r o v i d e d b y a D e fa u l t i n g L e n d e r, a n y i n t e r e s t a c c ru e d o n s u c h o b l i g a t i o n ) fo r w h i c h t h e C a s h C o l l a t e r a l w a s s o p r o v i d e d, p r i o r t o a n y o t h e r ap p l i c a t i o n o f s u c h p r o p e r t y a s m a y o t h e rw i s e b e p r o v i d e d fo r h e r e i n. Te r m i n a t i o n o f R e q u i r e m e n t. C a s h C o l l a t e r a l ( o r t h e ap p r o p r i a t e p o r t i o n ( c ) t h e r e o f) p r o v i d e d t o r e du c e t h e I s s u i n g B a n k’s F r o n t i n g E x p o s u r e s h a l l n o l o n g e r b e r e q u i r e d t o b e h e l d a s C a s h C o l l a t e r a l p u r s u a n t t o t h i s S e c t i o n 2.1 5 fo l l o w i n g ( i ) t h e e l i m i n a t i o n o f t h e ap p l i c a b l e F r o n t i n g E x p o s u r e ( i n c l u d i n g b y t h e t e r m i n a t i o n o f D e fa u l t i n g L e n d e r s t a tu s o f t h e ap p l i c a b l e L e n d e r ), o r ( i i ) t h e d e t e r m i n a t i o n b y t h e A d m i n i s t r a t i v e A g e n t a n d t h e I s s u i n g B a n k t h a t t h e r e e x i s t s e x c e s s C a s h C o l l a t e r a l; p r o v i d e d, h o w e v e r, ( x ) C a s h C o l l a t e r a l fu r n i s h e d b y o r o n b e h a l f o f a C r e d i t P a r t y s h a l l n o t b e r e l e a s e d du r i n g t h e c o n t i n u a n c e o f a D e fa u l t o r E v e n t o f D e fa u l t ( a n d fo l l o w i n g ap p l i c a t i o n a s p r o v i d e d i n t h i s S e c t i o n 2.1 5 m a y b e o t h e r w i s e ap p l i e d i n a c c o r d a n c e w i t h S e c t i o n 9.3 ) b u t s h a l l b e r e l e a s e d up o n t h e c u r e, t e r m i n a t i o n o r w a i v e r o f s u c h D e fa u l t o r E v e n t o f D e fa u l t i n a c c o r d a n c e w i t h t h e t e r m s o f t h i s A g r e e m e n t, a n d ( y ) t h e P e r s o n p r o v i d i n g C a s h C o l l a t e r a l a n d t h e I s s u i n g B a n k o r S w i n g l i n e L e n d e r, a s ap p l i c a b l e, m a y a g r e e t h a t C a s h C o l l a t e r a l s h a l l n o t b e r e l e a s e d b u t i n s t e a d h e l d t o s up p o r t fu tu r e a n t i c i p a t e d F r o n t i n g E x p o s u r e o r o t h e r o b l i g a t i o n s. D e fa u l t i n g L e n d e r s.S e c t i o n 2.1 6 D e fa u l t i n g L e n d e r A dj u s t m e n t s. N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y ( a ) c o n t a i n e d i n t h i s A g r e e m e n t, i f a n y L e n d e r b e c o m e s a D e fa u l t i n g L e n d e r, t h e n, u n t i l s u c h t i m e a s s u c h L e n d e r i s n o l o n g e r a D e fa u l t i n g L e n d e r, t o t h e e x t e n t p e r m i t t e d b y A p p l i c a b l e L a w: Wa i v e r s a n d A m e n d m e n t s. S u c h D e fa u l t i n g L e n d e r’s r i g h t t o ap p r o v e ( i ) o r d i s ap p r o v e a n y a m e n d m e n t, w a i v e r o r c o n s e n t w i t h r e s p e c t t o t h i s A g r e e m e n t s h a l l b e r e s t r i c t e d a s s e t fo r t h i n S e c t i o n 1 1.4 ( b a ) ( i i i ). D e fa u l t i n g L e n d e r Wa t e r fa l l. A n y p a y m e n t o f p r i n c i p a l, i n t e r e s t, fe e s o r ( i i ) o t h e r a m o u n t ( o t h e r t h a n fe e s w h i c h a n y D e fa u l t i n g L e n d e r i s n o t e n t i t l e d t o r e c e i v e p u r s u a n t t o S e c t i o n 2.1 6 ( a ) ( i i i ) ) r e c e i v e d b y t h e A d m i n i s t r a t i v e A g e n t fo r t h e a c c o u n t o f s u c h D e fa u l t i n g L e n d e r ( w h e t h e r v o l u n t a ry o r m a n d a t o r y, a t m a tu r i t y, p u r s u a n t t o S e c t i o n 9 o r o t h e r w i s e, a n d i n c l u d i n g a n y a m o u n t s m a d e a v a i l a b l e t o t h e A d m i n i s t r a t i v e A g e n t b y t h a t D e fa u l t i n g L e n d e r p u r s u a n t t o S e c t i o n 1 1.3 ), s h a l l b e ap p l i e d a t s u c h t i m e o r t i m e s a s m a y b e d e t e r m i n e d b y t h e A d m i n i s t r a t i v e A g e n t a s fo l l o w s: fi r s t, t o t h e p a y m e n t o f a n y a m o u n t s o w i n g b y t h a t D e fa u l t i n g L e n d e r t o t h e A d m i n i s t r a t i v e A g e n t h e r e u n d e r; s e c o n d, t o t h e p a y m e n t o n a p r o r a t a b a s i s o f a n y a m o u n t s o w i n g b y t h a t D e fa u l t i n g L e n d e r t o t h e I s s u i n g B a n k o r t h e S w i n g l i n e L e n d e r h e r e u n d e r; t h i r d, i f s o d e t e r m i n e d b y t h e A d m i n i s t r a t i v e A g e n t o r r e q u e s t e d b y t h e I s s u i n g B a n k o r t h e S w i n g l i n e L e n d e r, t o b e h e l d a s C a s h C o l l a t e r a l fo r fu tu r e fu n d i n g o b l i g a t i o n s o f t h a t D e fa u l t i n g L e n d e r o f a n y p a r t i c i p a t i o n i n a n y S w i n g l i n e L o a n o r L e t t e r o f C r e d i t; fo u r t h, a s t h e B o r r o w e r m a y r e q u e s t ( s o l o n g a s n o D e fa u l t o r E v e n t o f D e fa u l t e x i s t s ), t o t h e fu n d i n g o f a n y L o a n i n r e s p e c t o f w h i c h t h a t D e fa u l t i n g L e n d e r h a s fa i l e d t o fu n d i t s p o r t i o n t h e r e o f a s r e q u i r e d b y t h i s A g r e e m e n t, a s d e t e r m i n e d b y t h e A d m i n i s t r a t i v e 6 5

 

 

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Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Lender to fund Loans under this Agreement; sixth, to the payment of any amounts owing to the Lenders, the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided, that, if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Borrowings in respect of which that Defaulting Lender has not fully funded its appropriate share and (y) such Loans or Letter of Credit Borrowings were made at a time when the conditions set forth in Section 5.2 were satisfied or waived, such payment shall be applied solely to the pay the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or Letter of Credit Borrowings owed to, that Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.16(a)(ii) shall be deemed paid to (and the underlying obligations satisfied to the extent of such payment) and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto. Certain Fees.(iii) Such Defaulting Lender shall not be entitled to receive any(A) Facility Fee, any fees with respect to Letters of Credit (except as provided in clause (b) below) or any other fees hereunder for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender). Each Defaulting Lender shall be entitled to receive Letter of(B) Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Revolving Commitment Percentage of the stated amount of Letters of Credit for which such Lender (rather than the Borrower or any other Credit Party) has provided Cash Collateral pursuant to Section 2.3(a), Section 2.15 or otherwise. With respect to any fee not required to be paid to any(C) Defaulting Lender pursuant to clause (A) or (B) above, the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in Letter of Credit Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to the Issuing Bank and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank’s or Swingline Lender’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee. 66

 

 

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Reallocation of Participations to Reduce Fronting Exposure. All or any(iv) part of such Defaulting Lender’s participation in Letter of Credit Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Commitment Percentages (calculated without regard to such Defaulting Lender’s Revolving Commitment) but only to the extent that (x) the conditions set forth in Section 5.2 are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Outstanding Amount of Revolving Loans of such Lender together with such Lender’s participation in Letter of Credit Obligations and Swingline Loans at such time to exceed such Non-Defaulting Lender’s Revolving Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation. Cash Collateral, Repayment of Swingline Loans. If the reallocation(v) described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, prepay Swingline Loans in an amount equal to the Swingline Lenders’ Fronting Exposure and (y) second, Cash Collateralize the Issuing Bank’s Fronting Exposure in accordance with the procedures set forth in Section 2.15. Defaulting Lender Cure. If the Borrower, the Administrative Agent and the(b) Swingline Lender and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders in accordance with the Revolving Commitments (without giving effect to Section 2.16(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. New Swingline Loans/Letters of Credit. So long as any Lender is a Defaulting(c) Lender, no Issuing Bank shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that the participations in the Letter of Credit Obligations related to any existing Letters of Credit as well as the new, extended, renewed or increased Letter of Credit has been or will be fully allocated among the Non-Defaulting Lenders in a manner consistent with clause (a)(iv) above and such Defaulting Lender shall not participate therein except to the extent such Defaulting Lender’s participation has been or will be fully Cash Collateralized in accordance with Section 2.15. 67

 

 

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Qualified Counterparties. So long as any Lender is a Defaulting Lender, such(d) Lender shall not be a Swap Bank with respect to any Swap Contract entered into while such Lender was a Defaulting Lender. Removal or Replacement of Lenders. If (a) any Lender requests compensationSection 2.17 under Section 3.2, (b) any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.3, (c) any Lender gives notice of an inability to fund LIBOR RateSOFR Loans under Section 3.1(b), (d) any Lender is a Defaulting Lender, or (e) any Lender (a “Non-Consenting Lender”) does not consent (including by way of a failure to respond in writing to a proposed amendment, consent or waiver by the date and time specified by the Administrative Agent) to a proposed amendment, consent, change, waiver, discharge or termination hereunder or with respect to any Credit Document that has been approved by the Required Lenders, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.5), all of its interests, rights (other than its rights under Section 3.2, Section 3.3 and Section 11.2) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that: the Borrower shall have paid to the Administrative Agent the assignment(i) fee specified in Section 11.5(b)(iv); such Lender shall have received payment of an amount equal to the(ii) outstanding principal of its Loans and participations in Letter of Credit Borrowings, as applicable, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under Section 3.1(c)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts); in the case of any such assignment resulting from a claim for(iii) compensation under Section 3.2 or payments required to be made pursuant to Section 3.3, such assignment is reasonably expected to result in a reduction in such compensation or payments thereafter; such assignment does not conflict with Applicable Law; and(iv) in the case of any such assignment resulting from a Non-Consenting(v) Lender’s failure to consent to a proposed amendment, consent, change, waiver, discharge or termination, the successor replacement Lender shall have consented to the proposed amendment, consent, change, waiver, discharge or termination. Each Lender agrees that in the event it, or its interests in the Loans and obligations hereunder, shall become subject to the replacement and removal provisions of this Section, it will cooperate with the Borrower and the Administrative Agent to give effect to the provisions hereof, including execution and delivery of an Assignment Agreement in connection therewith, but the replacement and removal provisions of this Section shall be effective regardless of whether an Assignment Agreement shall have been given. A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 68

 

 

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E x t e n s i o n o f R e v o l v i n g M a tu r i t y D a t e.S e c t i o n 2.1 8 R e q u e s t fo r E x t e n s i o n. T h e B o rr o w e r m a y, b y w r i t t e n n o t i c e ( t h e “ E x t e n s i o n ( a ) N o t i c e ” ) t o t h e A d m i n i s t r a t i v e A g e n t ( w h i c h s h a l l p r o m p t l y n o t i fy t h e R e v o l v i n g L e n d e r s ) n o t e a r l i e r t h a n o n e h u n d r e d t w e n t y ( 1 2 0 ) d a y s a n d n o t l a t e r t h a n s i x t y ( 6 0 ) d a y s p r i o r t o t h e R e v o l v i n g M a tu r i t y D a t e, r e q u e s t t h a t e a c h R e v o l v i n g L e n d e r e x t e n d t h e R e v o l v i n g M a tu r i t y D a t e fo r t w o ( 2 ) a d d i t i o n a l s i x ( 6 ) m o n t h p e r i o d s fr o m t h e R e v o l v i n g M a tu r i t y D a t e t h e n i n e ffe c t, e a c h s u c h e x t e n s i o n t o b e i r r e v o c a b l y g r a n t e d o n t h e d a t e ( a n “ E x t e n s i o n E ffe c t i v e D a t e ” ) t h a t e a c h o f t h e c o n d i t i o n s s e t fo r t h i n t h i s S e c t i o n 2.1 8 h a v e b e e n s a t i s fi e d. U p o n t h e s a t i s fa c t i o n o f e a c h o f t h e c o n d i t i o n s s e t fo r t h i n t h i s S e c t i o n 2.1 8, a n E x t e n s i o n E ffe c t i v e D a t e s h a l l o c c u r a n d t h e R e v o l v i n g M a tu r i t y D a t e t h e n i n e ffe c t s h a l l b e e x t e n d e d fo r s i x ( 6 ) a d d i t i o n a l m o n t h s. C o n d i t i o n s t o E ffe c t i v e n e s s o f E x t e n s i o n. S u bj e c t t o t h e p r o v i s i o n s o f t h e ( b ) fo r e g o i n g c l a u s e ( a ), t h e e x t e n s i o n o f t h e R e v o l v i n g M a tu r i t y D a t e p u r s u a n t t o t h i s S e c t i o n s h a l l n o t b e e ffe c t i v e w i t h r e s p e c t t o a n y R e v o l v i n g L e n d e r u n l e s s: n o D e fa u l t o r E v e n t o f D e fa u l t h a s o c c u r r e d a n d i s c o n t i n u i n g o n t h e ( i ) s u bj e c t E x t e n s i o n E ffe c t i v e D a t e; t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s c o n t a i n e d i n S e c t i o n 4 6 a n d t h e o t h e r ( i i ) C r e d i t D o c u m e n t s a r e t ru e a n d c o r r e c t i n a l l m a t e r i a l r e s p e c t s o n a n d a s o f t h e s u bj e c t E x t e n s i o n E ffe c t i v e D a t e, e x c e p t t o t h e e x t e n t t h a t s u c h r e p r e s e n t a t i o n s a n d w a r r a n t i e s s p e c i fi c a l l y r e fe r t o a n e a r l i e r d a t e, i n w h i c h c a s e t h e y a r e t ru e a n d c o r r e c t i n a l l m a t e r i a l r e s p e c t s a s o f s u c h e a r l i e r d a t e, a n d e x c e p t t h a t fo r p u rp o s e s o f t h i s S e c t i o n 2.1 8, t h e r e p r e s e n t a t i o n s a n d w a r r a n t i e s c o n t a i n e d i n s u b s e c t i o n s ( a ) a n d ( b ) o f S e c t i o n 6.7 s h a l l b e d e e m e d t o r e fe r t o t h e m o s t r e c e n t s t a t e m e n t s fu rn i s h e d p u r s u a n t t o c l a u s e s ( a ) a n d ( b ), r e s p e c t i v e l y, o f S e c t i o n 7.1; fo r t h e s e c o n d s i x ( 6 ) m o n t h e x t e n s i o n, t h e i n i t i a l s i x ( 6 ) m o n t h ( i i i ) e x t e n s i o n s h a l l h a v e b e e n v a l i d l y e x e r c i s e d; Administrative Agent shall have received a pro forma Compliance(iv) Certificate as of the subject Extension Effective Date; [intentionally deleted]; and(v) the Borrowers shall pay to the Administrative Agent (for the benefit of(vi) the Revolving Lenders) on the subject Extension Effective Date a fee (to be shared among and paid to the Revolving Lenders based upon their Revolving Commitment Percentages of the Aggregate Revolving Commitments) equal to the product of (i) 0.0625% multiplied by (ii) the then Aggregate Revolving Commitments. Conflicting Provisions. This Section shall supersede any provisions in Section(c) 11.4 to the contrary. Increase in Commitments.Section 2.19 Request for Increase. Provided there exists no Default or Event of Default, upon(a) notice to the Administrative Agent (which shall promptly notify the Lenders), the Borrower may, from time to time, request an increase in the Aggregate Revolving Commitments and/or the 69

 

 

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Existing Term Loan, or the funding of one or more tranches of additional term loans hereunder (the “Additional Term Loans”) by an amount (for all such requests) not exceeding $500,000,000 (to a maximum amount of Aggregate Revolving Commitments plus the Existing Term Loan plus all Additional Term Loans equal to $1,750,000,000 (the “Total Facility Amount”)); provided that any such request for an increase shall be in a minimum amount of $10,000,000 and in whole increments of $5,000,000 in excess thereof; provided, further, at Borrower’s option, Borrower may request that any such requested increase or funding be effected through the addition of one or more term loan commitments with respect to one or more tranches of additional term loans (the “Additional Term Commitments”) (and, in such event, all references in this Section 2.19 to any increase or funding, as and to the extent applicable at any time, shall be deemed and construed to mean and refer to any such term loan commitmentAdditional Term Commitment in the amount of such increase or funding, mutatis mutandis), subject further, however, (1) to the continued applicability of the terms and provisions of this Section 2.19 and (2) in addition to the items specified in Section 2.19(e), the prior execution and delivery by the Credit Parties of such other and further agreements, amendments, instruments, and documents which Administrative Agent may then require in its sole but reasonable determination to effect any such term loan commitmentAdditional Term Commitment in the amount of such increase (it being understood and agreed that, without limiting the generality of this clause (2), any Additional Term Commitments shall be effected pursuant to one or more New Term Loan Amendments executed and delivered by the Credit Parties, the Administrative Agent, and the applicable Term Lenders). At the time of sending any notice of such requested increase in the Aggregate Revolving Commitments and/or the Existing Term Loan or any notice of such requested funding of an Additional Term Loan, the Borrower (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Lenders). The terms and provisions of any Additional Term Commitments and any Additional Term Loans, including the pricing, maturity, fees payable, and other terms thereof, shall be as agreed by the Administrative Agent, the applicable Term Lenders, and the Borrower and set forth in the applicable New Term Loan Amendment; provided that, without the prior written consent of all other Lenders, no Additional Term Loan shall (A) have a maturity date that is earlier than the maturity date of any existing Term Loan or the Revolving Maturity Date, (B) require scheduled amortization of such Additional Term Loan prior to the maturity date of any existing Term Loans or the Revolving Maturity Date, but such Additional Term Loan may permit voluntary prepayment (subject to sub-clause (C) hereof), and (C) rank higher than pari passu in right of payment and with respect to security with all Revolving Loans and any existing Term Loans or have different borrower or guarantors as the Borrower and Guarantors with respect to all Revolving Loans and existing Term Loans. Except as set forth in the immediately prior sentence with respect to the maturity date of any Additional Term Loans made pursuant to this Section 2.19, no Lender that is not a Term Lender with respect to such tranche of Additional Term Loans shall have any consent rights with respect to the terms of such Additional Term Loans set forth in such New Term Loan Amendment so long as such terms are in accordance with the provisions of this Agreement. Each New Term Loan Amendment may, without the consent of any other Lenders, but subject to Sections 11.4(a), (b) and (c), effect such amendments to this Agreement and the other Loan Documents as are consistent with this Section 2.19 and may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Section 2.19 with respect thereto. Lender Elections to Increase. Each Lender may decline or elect to participate in(b) such requested increase in the Aggregate Revolving Commitments and/or Existing Term Loan or such requested funding of an Additional Term Loan, in each case in its sole discretion, and each Lender shall notify the Administrative Agent within such time period whether or not it agrees to 70

 

 

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increase its Revolving Commitment and/or Existing Term Loan and/or participate in the funding of an Additional Term Loan and, if so, whether by an amount equal to, greater than, or less than its Revolving Commitment Percentage ofor pro rata share of the Existing Term Loan, as applicable, of such requested increase or funding (based on such Lender’s Revolving Commitments and the Aggregate Revolving Commitments or pro rata share and outstanding amount of the Existing Term Loan, as applicable, in effect immediately prior to the effectiveness of any such increase or funding). Any Lender not responding within such time period shall be deemed to have declined to (x) increase its Revolving Commitment and/or Existing Term Loan and (y) participate in the funding of an Additional Term Loan. Notification by Administrative Agent; Additional Lenders. The Administrative(c) Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request for increase or funding made hereunderunder this Section 2.19. To achieve the full amount (or any lesser amount acceptable to the Borrower and the Administrative Agent) of a requested increase or funding (in the event that the aggregate amount of increases in individual Revolving Commitments and/or Existing Term Loan or funding of an Additional Term Loan by then-existing Lenders is less than the aggregate amount of the requested increase or funding) and subject to the approval of the Borrower, Administrative Agent, the Issuing Bank and the Swingline Lender (which approvals shall not be unreasonably withheld), the Borrower, the Administrative Agent or the Lead Arrangers (or any of the them) may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement and/or commitment agreements in form and substance reasonably satisfactory as to its inclusion of such Eligible Assignees to the Administrative Agent and its counsel. To the extent that the joinder or commitment agreements described above provide for an applicable margin of, and/or commitment or facility fee for, additional Revolving Commitments and/or Existing Term Loan greater than the Applicable Margin and/or Facility Fee with respect to the existing Revolving Commitments and/or Existing Term Loan at such time, the Applicable Margin and/or the Facility Fee (as applicable) for the existing Revolving Commitments and/or Existing Term Loan shall be increased automatically (without the consent of the Required Lenders) such that the Applicable Margin and/or the Facility Fee (as applicable) for such existing Revolving Commitments and/or Existing Term Loan is not less than the applicable margin and/or the commitment fee or facility fee (as applicable) for such additional Revolving Commitments and/or Existing Term Loan. For the avoidance of doubt, the joinder or commitment agreements described above with respect to an Additional Term Loan may have applicable margins, commitment or facility fees, and other terms that are different than those of the Revolving Commitments and/or Existing Term Loan without requiring any modification of such terms. Effective Date and Allocations. If the Aggregate Revolving Commitments(d) and/or Existing Term Loan are increased, or an Additional Term Loan is funded, in any case in accordance with this Section, the Administrative Agent and the Borrower shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase or funding. The Administrative Agent shall promptly notify the Borrower and the Lenders of the final allocation of such increase or funding and the Increase Effective Date. Conditions to Effectiveness of Increase. As a condition precedent to each such(e) increase in the Aggregate Revolving Commitments and/or Existing Term Loan, or such funding of an Additional Term Loan, the Borrower shall deliver to the Administrative Agent (x) a certificate of each Credit Party dated as of the Increase Effective Date signed by an Authorized Officer of such Credit Party (i) certifying and attaching the resolutions adopted by such Credit Party approving or consenting to such increase or funding, and (ii) in the case of the Borrower, certifying that, before and after giving effect to such increase or funding, (A) the representations 71

 

 

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and warranties contained in Section 6 and the other Credit Documents are true and correct in all material respects on and as of the Increase Effective Date (with any representations and warranties which are subject to a materiality qualifier being true and correct in all respects in accordance with the terms thereof), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (or in all respects, as applicable) as of such earlier date, and except that for purposes of this Section 2.19, the representations and warranties contained in subsections (a), (b) and (c) of Section 6.7 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a), (b) and (d), respectively, of Section 7.1, and (B) no Default or Event of Default exists as of the Increase Effective Date, and (y) such new or additional Notes payable to each of the Lenders as are required to be delivered pursuant to Section 2.5(b). The Borrower shall prepay any Revolving Loans outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to Section 3.1(c)) to the extent necessary to keep the outstanding Revolving Loans ratable with any revised Revolving Commitment Percentages arising from any non-ratable increase in the Aggregate Revolving Commitments under this Section, and each Credit Party shall execute and deliver such documents or instruments (including, without limitation, a New Term Loan Amendment) as the Administrative Agent may require to evidence such increase in Revolving Commitments and/or Existing Term Loan and/or Additional Term Loan and to ratify each such Credit Party’s continuing obligations hereunder and under the other Credit Documents. Conflicting Provisions. This Section shall supersede any provisions in Section(f) 11.4 to the contrary. YIELD PROTECTIONSection 3 Making or Maintaining LIBOR RateSOFR Loans.Section 3.1 Inability to Determine Applicable Interest Rate. In the event that the(a) Administrative Agent shall have reasonably determined (which determination shall be final and conclusive and binding upon all parties hereto), on any Interest Rate Determination Date with respect to any LIBOR RateSOFR Loans that, by reason of circumstances affecting the London interbank market, adequate and fair means do not exist for ascertaining the interest rate applicable to such LIBOR RateSOFR Loans on the basis provided for in the definition of LIBOR Rate, as applicable, (in each case, with respect this clause (a), “Impacted Loans”), the Administrative Agent shall on such date give notice (by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon (1) no Loans may be made as, or converted to, LIBOR RateSOFR Loans until such time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, and (2) any Funding Notice or Conversion/Continuation Notice given by the Borrower with respect to the Loans in respect of which such determination was made shall be deemed to be rescinded by the Borrower and such Loans shall be automatically made or continued as, or converted to, as applicable, Base Rate Loans without reference to the LIBOR RateAdjusted Term SOFR component of the Base Rate. Upon any such conversion, the Borrower shall also pay accrued interest on the amount so converted, together with any additional amounts required pursuant to Section 3.1(c). Illegality or Impracticability of LIBOR RateSOFR Loans. In the event that on(b) any date any Lender shall have determined (which determination shall be final and conclusive and binding upon all parties hereto but shall be made only after consultation with the Borrower and the Administrative Agent) that the making, maintaining or continuation of its LIBOR RateSOFR Loans (i) has become unlawful as a result of compliance by such Lender in good faith 72

 

 

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with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order not having the force of law even though the failure to comply therewith would not be unlawful), or (ii) has become impracticable, as a result of contingencies occurring after the date hereof which materially and adversely affect the London interbank market or the position of such Lender in that market, then, and in any such event, such Lender shall be an “Affected Lender” and it shall on that day give notice (by telefacsimile or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each other Lender). Thereafter (1) the obligation of the Affected Lender to make Loans as, or to convert Loans to, LIBOR RateSOFR Loans shall be suspended until such notice shall be withdrawn by the Affected Lender, (2) to the extent such determination by the Affected Lender relates to a LIBOR RateSOFR Loan then being requested by the Borrower pursuant to a Funding Notice or a Conversion/Continuation Notice, the Affected Lender shall make such Loan as (or continue such Loan as or convert such Loan to, as the case may be) a Base Rate Loan without reference to the LIBOR RateAdjusted Term SOFR component of the Base Rate, (3) the Affected Lender’s obligation to maintain its outstanding LIBOR RateSOFR Loans (the “Affected Loans”) shall be terminated at the earlier to occur of the expiration of the Interest Period then in effect with respect to the Affected Loans or when required by law, and (4) the Affected Loans shall automatically convert into Base Rate Loans without reference to the LIBOR RateAdjusted Term SOFR component of the Base Rate on the date of such termination. Notwithstanding the foregoing, to the extent a determination by an Affected Lender as described above relates to a LIBOR RateSOFR Loan then being requested by the Borrower pursuant to a Funding Notice or a Conversion/Continuation Notice, the Borrower shall have the option, subject to the provisions of Section 3.1(a)(i1), to rescind such Funding Notice or Conversion/Continuation Notice as to all Lenders by giving notice (by telefacsimile or by telephone confirmed in writing) to the Administrative Agent of such rescission on the date on which the Affected Lender gives notice of its determination as described above (which notice of rescission the Administrative Agent shall promptly transmit to each other Lender). Except as provided in the immediately preceding sentence, nothing in this Section 3.1(b) shall affect the obligation of any Lender other than an Affected Lender to make or maintain Loans as, or to convert Loans to, LIBOR RateSOFR Loans in accordance with the terms hereof. Compensation for Breakage or Non-Commencement of Interest Periods. The(c) Borrower shall compensate each Lender, upon written request by such Lender (which request shall set forth the basis for requesting such amounts), for all reasonable out-of-pocket losses, expenses and liabilities (including any interest paid or calculated to be due and payable by such Lender to lenders of funds borrowed by it to make or carry its LIBOR RateSOFR Loans and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds but excluding loss of anticipated profits) which such Lender sustains: (i) if for any reason (other than a default by such Lender) a borrowing of any LIBOR RateSOFR Loans does not occur on a date specified therefor in a Funding Notice or a telephonic request for borrowing, or a conversion to or continuation of any LIBOR RateSOFR Loans does not occur on a date specified therefor in a Conversion/Continuation Notice or a telephonic request for conversion or continuation; (ii) if any prepayment or other principal payment of, or any conversion of, any of its LIBOR RateSOFR Loans occurs on any day other than the last day of an Interest Period applicable to that Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise), including as a result of an assignment in connection with the replacement of a Lender pursuant to Section 3.4(b); or (iii) if any prepayment of any of its LIBOR RateSOFR Loans is not made on any date specified in a notice of prepayment given by the Borrower. 73

 

 

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Booking of LIBOR RateSOFR Loans. Any Lender may make, carry or transfer(d) LIBOR RateSOFR Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender. Assumptions Concerning Funding of LIBOR Rate Loans. Calculation of all(e) amounts payable to a Lender under this Section 3.1 and under Section 3.2 shall be made as though such Lender had actually funded each of its relevant LIBOR Rate Loans through the purchase of a LIBOR deposit bearing interest at the rate obtained pursuant to clause (i) of the definition of LIBOR Rate in an amount equal to the amount of such LIBOR Rate Loans and having a maturity comparable to the relevant Interest Period and through the transfer of such LIBOR deposit from an offshore office of such Lender to a domestic office of such Lender in the United States of America; provided, however, each Lender may fund each of its LIBOR Rate Loans in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes of calculating amounts payable under this Section 3.1 and under Section 3.2No Match Funding. Anything to the contrary contained herein notwithstanding, neither the Administrative Agent, nor any Lender, nor any of their Participants, is required actually to match fund any Obligation as to which interest accrues at Adjusted Term SOFR, Adjusted Daily Simple SOFR or the Term SOFR Reference Rate. Certificates for Reimbursement. A certificate of a Lender setting forth in(f) reasonable detail the amount or amounts necessary to compensate such Lender, as specified in paragraph (c) of this Section and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof. Delay in Requests. The Borrower shall not be required to compensate a Lender(g) pursuant to this Section for any such amounts incurred more than six (6) months prior to the date that such Lender delivers to the Borrower the certificate referenced in Section 3.1(f). Increased Costs.Section 3.2 Increased Costs Generally. If any Change in Law shall:(a) impose, modify or deem applicable any reserve, special deposit,(i) compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBOR Rate) or the Issuing Bank; subject any Recipient to any Taxes (other than (A) Indemnified Taxes,(ii) (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or impose on any Lender or the Issuing Bank or the Londonapplicable(iii) interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; 74

 

 

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and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, Issuing Bank or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, Issuing Bank or other Recipient, the Borrower will pay to such Lender, Issuing Bank or other Recipient, as the case may be, such additional amount or amounts as will reasonably compensate such Lender, Issuing Bank or other Recipient, as the case may be, for such additional costs incurred or reduction suffered. Capital Requirements. If any Lender, the Issuing Bank or the Swingline Lender(b) (for purposes hereof, may be referred to collectively as “the Lenders” or a “Lender”) determines that any Change in Law affecting such Lender or any lending officeApplicable Lending Office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the commitments of such Lender hereunder or the Loans made by, or participations in Letters of Credit and Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered. Certificates for Reimbursement. A certificate of a Lender or an Issuing Bank(c) setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and the circumstances giving rise thereto shall be delivered to the Borrower and shall be conclusive absent manifest error. In the absence of any such manifest error, the Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof. Delay in Requests. Failure or delay on the part of any Lender or the Issuing(d) Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that such Lender or the Issuing Bank, as the case may be, delivers to the Borrower the certificate referenced in Section 3.2(c) and notifies the Borrower of such Lender’s or the Issuing Bank’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof). Taxes.Section 3.3 Issuing Bank. For purposes of this Section 3.3, the term “Lender” shall include(a) the Issuing Bank. 75

 

 

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Payments Free of Taxes; Obligation to Withhold; Payments on Account of(b) Taxes. Any and all payments by or on account of any obligation of any Credit Party hereunder or under any other Credit Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. Payment of Other Taxes by the Credit Parties. The Credit Parties shall timely(c) pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes. Tax Indemnification. (i)The Credit Parties shall jointly and severally indemnify(d) each Recipient within ten (10) Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. Each Lender shall severally indemnify the Administrative Agent within(ii) ten (10) Business Days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 11.5(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this clause (ii). Evidence of Payments. As soon as practicable after any payment of Taxes by(e) any Credit Party to a Governmental Authority pursuant to this Section, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of a return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 76

 

 

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Status of Lenders; Tax Documentation. (i)Any Lender that is entitled to an(f) exemption from or reduction of withholding Tax with respect to payments made under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in clauses (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. Without limiting the generality of the foregoing, in the event that the(ii) Borrower is a U.S. Person, any Lender that is a U.S. Person shall deliver to the Borrower(A) and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originalscopies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax; any Foreign Lender shall, to the extent it is legally entitled to(B) do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable: in the case of a Foreign Lender claiming the benefits of(i) an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Credit Document, executed originalscopies of IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor form) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Credit Document, IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor form) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty; executed originalscopies of IRS Form W-8ECI;(ii) in the case of a Foreign Lender claiming the benefits of(iii) the exemption for portfolio interest under Section 881(c) of the Internal Revenue Code, (x) a certificate substantially in the form of Exhibit 3.3-1 77

 

 

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to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Internal Revenue Code (a “U.S. Tax Compliance Certificate”) and (y) executed originalscopies of IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor form); or to the extent a Foreign Lender is not the beneficial(iv) owner, executed originalscopies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, as applicable (or any successor form), a U.S. Tax Compliance Certificate substantially in the form of Exhibit 3.3-2 or Exhibit 3.3-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit 3.3-4 on behalf of each such direct and indirect partner; any Foreign Lender shall, to the extent it is legally entitled to(C) do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originalscopies of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and if a payment made to a Lender under any Credit Document(D) would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 78

 

 

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Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so. Treatment of Certain Refunds. Unless required by Applicable Law, at no time(g) shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of the indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person. Survival. Each party’s obligations under this Section 3.3 shall survive the(h) resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Credit Document. Mitigation Obligations; Designation of a Different Lending Office. (a)Section 3.4 Designation of a Different Lending Office. If any Lender requests compensation under Section 3.2, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.3, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending officeApplicable Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.2 or Section 3.3, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. Replacement of Lenders. If any Lender requests compensation under Section(b) 3.2, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.3 and, in each case, such Lender has declined or is unable to designate a different lending officeApplicable Lending Office in accordance with Section 3.4(a), or if any Lender is a 79

 

 

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Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.5), all of its interests, rights (other than its existing rights to payments pursuant to Section 3.2 or Section 3.3) and obligations under this Agreement and the related Credit Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that: the Borrower shall have paid to the Administrative Agent the assignment(i) fee (if any) specified in Section 11.5; such Lender shall have received payment of an amount equal to the(ii) outstanding principal of its Loans and participations in Letter of Credit Borrowings, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under Section 3.1) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts); in the case of any such assignment resulting from a claim for(iii) compensation under Section 3.2 or payments required to be made pursuant to Section 3.3, such assignment will result in a reduction in such compensation or payments thereafter; such assignment does not conflict with Applicable Law; and(iv) in the case of any assignment resulting from a Lender becoming a(v) Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent. A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. Permanent Inability to Determine Rate; Benchmark ReplacementSection 3.5 Setting. Notwithstanding anything to the contrary herein or in any other Credit Document:Replacing USD LIBOR. On March 5, 2021, the Financial Conduct Authority (“FCA”), the regulatory supervisor of USD LIBOR’s administrator (“IBA”), announced in a public statement the future cessation or loss of representativeness of overnight/Spot Next, 1-month, 3-month, 6-month and 12-month USD LIBOR tenor settings. On the earliest of (i) July 1, 2023, (ii) the date that all Available Tenors of USD LIBOR have either permanently or indefinitely ceased to be provided by IBA or have been announced by the FCA pursuant to public statement or publication of information to be no longer representative and (iii) the Early Opt-in Effective Date, if the then-current Benchmark is USD LIBOR, the Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Credit Document in respect of any setting of such Benchmark on such day and all subsequent settings without any amendment to, or further action by or consent of any other party to, this Agreement or any other Credit Document. If the Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a monthly basis. Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a 80

 

 

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Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of the then-current Benchmark with a Benchmark Replacement pursuant to this Section 3.5 will occur prior to the applicable Benchmark Transition Start Date. Unless and until a Benchmark Replacement is effective in accordance with this Section 3.5, all Loans shall be converted into Base Rate Loans in accordance with the provisions of Section 3.1(a). (b) Replacing Future Benchmarks. If any Benchmark Transition Event occurs after the date hereof (other than as described above with respect to USD LIBOR), the then-current Benchmark will be replaced with the Benchmark Replacement for all purposes hereunder and under any Credit Document in respect of any Benchmark setting on the later of (i) as of 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders and the Borrower (together, if applicable, with an amendment to this Agreement implementing such Benchmark Replacement and any applicable Benchmark Replacement Conforming Changes) or (ii) such other date as may be determined by the Administrative Agent, in each case, without any further action or consent of any other party to this Agreement or any other Credit Document, so long as the Administrative Agent has not received, by such time (or, in the case of clause (ii) above, such time as may be specified by the Administrative Agent as a deadline to receive objections, but in any case, no less than five (5) Business Days after the date such notice is provided to the Lenders and the Borrower), written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders; provided, however, that in the event that the then-current Benchmark is not a SOFR-based rate, then the Benchmark Replacement shall be determined in accordance with clause (1) of the definition of “Benchmark Replacement” unless the Administrative Agent has determined that neither of such alternative rates is available. At any time that the administrator of the then-current Benchmark has permanently or indefinitely ceased to provide such Benchmark or such Benchmark has been announced by the regulatory supervisor for the administrator of such Benchmark pursuant to public statement or publication of information to be no longer representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored, the Borrower may revoke any request for a borrowing of, conversion to or continuation of Loans to be made, converted or continued that would bear interest by reference to such Benchmark until the Borrower’s receipt of notice from the Administrative Agent that a Benchmark Replacement has replaced such Benchmark, and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans. During the period referenced in the foregoing sentence, the component of Base Rate based upon the Benchmark will not be used in any determination of Base Rate. (c) Benchmark Replacement Conforming Changes. In connection with the use,(b) administration, adoption or implementation and administration of a Benchmark Replacement (whether in connection with the replacement of USD LIBOR or any future Benchmark), the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes, from time to time and, notwithstanding anything to the contrary herein or in any other CreditLoan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other CreditLoan Document. (d) Notices; Standards for Decisions and Determinations. The Administrative(c) Agent will promptly notify the Borrower and the Lenders of (i) the implementation of any 81

 

 

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Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement Conforming Changes. The Administrative Agent will notify the Borrower and the removal or reinstatement of any tenor of a Benchmark. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 3.5, including, without limitation, any determination with respect to a tenor, rate or adjustment, or implementation of any Benchmark Replacement Conforming Changes, the timing of implementation of any Benchmark Replacement or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding on all parties hereto absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Credit Documenthereto, except, in each case, as expressly required pursuant to this Section, and shall not be a basis of any claim of liability of any kind or nature by any party hereto, all such claims being hereby waived individually by each party hereto 3.5. (e) Unavailability of Tenor of Benchmark. AtNotwithstanding anything to the(d) contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if theany then-current Benchmark is a term rate (including the Term SOFR or USD LIBOR or any alternateReference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected in an Early Opt-in Election), thenby the Administrative Agent mayin its reasonable discretion or (B) the administrator of such Benchmark or the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for any Benchmark settings at or after such time to remove any tenor of such Benchmark that is unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for sucha Benchmark (including anya Benchmark Replacement) settings and (ii) if such tenor becomes available or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative, then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate anysuch previously removed tenor for such Benchmark (including any Benchmark Replacement) settings. (f) Certain Defined Terms. As used in this Section: “Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then-current Benchmark is a term rate, any tenor for such Benchmark that is or may be used for determining the length of an Interest Period or (y) otherwise, any payment period for interest calculated with reference to such Benchmark, as applicable, pursuant to this Agreement as of such date. “Benchmark” means, initially, USD LIBOR; provided that if a replacement for the Benchmark has occurred pursuant to this Section, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate. Any reference to “Benchmark” shall include, as applicable, the published component used in the calculation thereof. “Benchmark Replacement” means, for any Available Tenor: 82

 

 

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(1) for purposes of clause (a) of this Section, the first alternative set forth below that can be determined by the Administrative Agent: (a) the sum of: (i) Term SOFR and (ii) 0.11448% (11.448 basis points) for an Available Tenor of one-month’s duration, 0.26161% (26.161 basis points) for an Available Tenor of three-months’ duration, and 0.42826% (42.826 basis points) for an Available Tenor of six-months’ duration; or (b) the sum of: (i) Daily Simple SOFR and (ii) the spread adjustment for an Available Tenor of one-month’s duration (0.11448% (11.448 basis points)); provided, however, that if an Early Opt-in Election has been made, the Benchmark Replacement will be the benchmark selected in connection with such Early Opt-in Election; and (2) for purposes of clause (b) of this Section, the sum of: (a) the alternate benchmark rate and (b) an adjustment (which may be a positive or negative value, or zero), in each case, that has been selected pursuant to this clause (2) by the Administrative Agent and the Borrower as the replacement for such Available Tenor of such Benchmark giving due consideration to any evolving or then-prevailing market convention, including any applicable recommendations made by the Relevant Governmental Body, for U.S. dollar-denominated syndicated credit facilities at such time; provided that, if the Benchmark Replacement as determined pursuant to clause (1) or (2) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for all purposes of this Agreement. “Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “ABR,” the definition of “Business Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement). “Benchmark Transition Event” means, with respect to any then-current Benchmark (other than USD LIBOR), the occurrence of a public statement or publication of information by or on behalf of the administrator of the then-current Benchmark, the regulatory supervisor for the administrator of such Benchmark, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date to provide all Available Tenors of such Benchmark, 83

 

 

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permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark or (b) all Available Tenors of such Benchmark are or will no longer be representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored. “Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for syndicated business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion. “Early Opt-in Effective Date” means, with respect to any Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Lenders. “Early Opt-in Election” means the occurrence of: (1) a notification by the Administrative Agent to each of the other parties hereto that at least five currently outstanding U.S. dollar-denominated syndicated credit facilities at such time incorporate or adopt (as a result of amendment or as originally executed) either a SOFR-based rate (including SOFR or Term SOFR or any other rate based upon SOFR) as a benchmark rate or an alternate benchmark interest rate to replace USD LIBOR (and such syndicated credit facilities are identified in such notice and are publicly available for review), and (2) the joint election by the Administrative Agent and the Borrower to trigger a fallback from USD LIBOR and the provision by the Administrative Agent of written notice of such election to the Lenders. “Floor” means zero percent (0%). “Relevant Governmental Body” means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or any successor thereto. “SOFR” means, for any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org. (or any successor source for the secured overnight financing rate identified as such by the administrator of the secured overnight financing rate from time to time), on the immediately succeeding Business Day. “Term SOFR” means, for the applicable corresponding tenor, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. 84

 

 

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“USD LIBOR” means the London interbank offered rate for U.S. dollars Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the(e) commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon Adjusted Term SOFR (or then-current Benchmark) will not be used in any determination of Base Rate. GUARANTYSection 4 The Guaranty.Section 4.1 Each of the Guarantors hereby jointly and severally guarantees to each Lender, each Swap Bank, each Treasury Management Bank, and the Administrative Agent as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that if any of the Obligations are not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory Cash Collateralization or otherwise) in accordance with the terms of such extension or renewal. Notwithstanding any provision to the contrary contained herein or in any other of the Credit Documents, Swap Contracts or Treasury Management Agreements, (a) the obligations of each Guarantor under this Agreement and the other Credit Documents shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law and (b) no Guarantor shall be deemed under this Section 4 to be a guarantor of any Obligations arising under any Swap Contracts if such Guarantor was not an “Eligible Contract Participant” as defined in § 1a(18) of the Commodity Exchange Act, as further defined and modified by the final rules issued jointly by the Commodity Futures Trading Commission and the SEC as published in 77 FR 30596 (May 23, 2012) (as amended, modified or replaced from time to time, collectively, with the Commodity Exchange Act, the “ECP Rules”), at the time the guaranty of such obligations was entered into, and at such other relevant time or time as provided in the ECP Rules or otherwise, and to the extent that the providing of such guaranty by such Guarantor would violate the ECP Rules or any other Applicable Law or regulation; provided however that in determining whether any Guarantor is an “Eligible Contract Participant” under the ECP Rules, the guaranty of the Obligations of such Guarantor under this Article IV by a Guarantor that qualifies as an “Eligible Contract Participant” under § 1a(18)(A)(v)(I) of the Commodity Exchange Act shall be taken into account. Obligations Unconditional.Section 4.2 The obligations of the Guarantors under Section 4.1 are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit Documents, Swap Contracts or Treasury Management Agreements, or any other agreement or 85

 

 

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instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by Applicable Law, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 4.2 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this Section 4 until the Termination Date. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above: at any time or from time to time, without notice to any Guarantor, the time for(a) any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived; any of the acts mentioned in any of the provisions of any of the Credit(b) Documents, any Swap Contract between any Credit Party and any Swap Bank, or any Treasury Management Agreement between any Credit Party and any Treasury Management Bank, or any other agreement or instrument referred to in the Credit Documents, such Swap Contracts or such Treasury Management Agreements shall be done or omitted; the maturity of any of the Obligations shall be accelerated, or any of the(c) Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Credit Documents, any Swap Contract between any Credit Party and any Swap Bank or any Treasury Management Agreement between any Credit Party and any Treasury Management Bank, or any other agreement or instrument referred to in the Credit Documents, such Swap Contracts or such Treasury Management Agreements shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with; as may be applicable at any time, any Lien granted to, or in favor of, the(d) Administrative Agent or any Lender or Lenders as security for any of the Obligations shall fail to attach or be perfected; or any of the Obligations shall be determined to be void or voidable (including,(e) without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor). With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Credit Documents, any Swap Contract between any Credit Party and any Swap Bank or any Treasury Management Agreement between any Credit Party and any Treasury Management Bank, or any other agreement or instrument referred to in the Credit Documents, such Swap Contracts or such Treasury Management Agreements, or against any other Person under any other guarantee of, or security for, any of the Obligations. Reinstatement.Section 4.3 86

 

 

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The obligations of the Guarantors under this Section 4 shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law. Certain Additional Waivers.Section 4.4 Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to Section 4.2 and through the exercise of rights of contribution pursuant to Section 4.6. Remedies.Section 4.5 The Guarantors agree that, to the fullest extent permitted by law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in Section 9.2 (and shall be deemed to have become automatically due and payable in the circumstances provided in said Section 9.2) for purposes of Section 4.1 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of Section 4.1. Rights of Contribution.Section 4.6 The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under Applicable Law. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution until the Termination Date. Guarantee of Payment; Continuing Guarantee.Section 4.7 The guarantee in this Section 4 is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising. Keepwell.Section 4.8 Each Credit Party that is a Qualified ECP Guarantor at the time the Guaranty or the grant of a Lien under the Credit Documents, in each case, by any Specified Credit Party becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Credit Party with respect to such Swap Obligation as may be needed by such Specified Credit Party from time to time to honor all of its obligations under the Credit Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Section 4 voidable under Applicable Law relating to 87

 

 

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fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this Section shall remain in full force and effect until the Termination Date. Each Credit Party intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Credit Party for all purposes of the Commodity Exchange Act or any regulations promulgated thereunder. CONDITIONS PRECEDENTSection 5 Conditions Precedent to Effective Date.Section 5.1 The effectiveness of this Agreement and the making of the Existing Term Loan on the Effective Date and any Credit Extension to be made on the Effective Date iswas subject to the satisfaction of the following conditions on or before the Effective Date: Executed Credit Documents. Receipt by the Administrative Agent of fully(a) executed counterparts of the following: this Agreement.(i) a Revolving Loan Note in favor of each Revolving Lender requesting a(ii) Note. a Term Note in favor of each Term Lender requesting a Note.(iii) reserved.(iv) a Compliance Certificate.(v) each of the other Credit Documents which is to be executed on the(vi) Effective Date, in each case in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and duly executed by the appropriate parties thereto. Organizational Documents. Receipt by the Administrative Agent of the(b) following: Charter Documents. Copies of articles of incorporation, certificate of(i) organization or formation, or other like document for each of the Credit Parties certified as of a recent date by the appropriate Governmental Authority. Organizational Documents Certificate. (i) Copies of bylaws, operating(ii) agreement, partnership agreement or like document, (ii) copies of resolutions approving the transactions contemplated in connection with the financing and authorizing execution and delivery of the Credit Documents, and (iii) incumbency certificates, for each of the Credit Parties, in each case certified by an Authorized Officer in form and substance reasonably satisfactory to the Administrative Agent. Good Standing Certificate. Copies of certificates of good standing,(iii) existence or other like document for each of the Credit Parties, dated as of a recent date, 88

 

 

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from the appropriate Governmental Authority of its jurisdiction of formation or organization. Beneficial Ownership Certification. (i) Upon the reasonable written(iv) request of any Lender made at least ten (10) Business Days prior to the Closing Date, Borrower shall have provided to such Lender the documentation and other information so requested in connection with applicable “know your customer” and Anti-Money Laundering rules and regulations, including the PATRIOT Act, in each case at least five (5) days prior to the Closing Date (or such shorter time as any such Lender shall agree to in writing); and (ii) at least five (5) days prior to the Closing Date (or such shorter time as any such Lender shall agree to in writing), any Credit Party that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation shall deliver a Beneficial Ownership Certification in relation to such Credit Party. Closing Certificate. A certificate from an Authorized Officer of the(v) Borrower, in form and substance reasonably satisfactory to the Administrative Agent, confirming, among other things, (A) all consents, approvals, authorizations, registrations, or filings required to be made or obtained by the Borrower and the other Credit Parties, if any, in connection with this Agreement and the other Credit Documents and the transactions contemplated herein and therein have been obtained and are in full force and effect, (B) no investigation or inquiry by any Governmental Authority regarding this Agreement and the other Credit Documents and the transactions contemplated herein and therein is ongoing, (C) since the date of the most-recent financial statements for the Parent and its Subsidiaries, there has been no event or circumstance which could be reasonably expected to have a Material Adverse Effect, (D) the most recent financial statements were prepared in accordance with GAAP consistently applied, except as noted therein, and fairly presents in all material respects the financial condition and results from operations of the Parent and its Subsidiaries, and (E) as of the Effective Date, the Borrower, the Parent and the other Credit Parties taken as a whole, are Solvent. Amendments/Waivers. To the extent necessary to permit the execution(vi) of this Agreement and the other Credit Documents by the applicable Credit Parties’ and the performance of the obligations hereunder and thereunder by the applicable Credit Parties’ and, to the extent necessary, to mirror any changes made to this Agreement, the Administrative Agent shall have received and approved fully executed copies of any and all consents, amendments and/or waivers required by any other loan facilities with respect to which any Credit Party is a party. Opinions of Counsel. Receipt by the Administrative Agent of customary(c) opinions of counsel (including local counsel to the extent required by the Administrative Agent) for each of the Credit Parties addressed to and/or for the benefit of the Administrative Agent and the Lenders, including, among other things, opinions regarding the due authorization, execution and delivery of the Credit Documents, and the enforceability thereof. Other Due Diligence Matters. Without limiting the foregoing (but without(d) duplication), satisfaction of all of the following conditions: All due diligence with respect to the Parent and the Borrower shall be(i) satisfactory to the Administrative Agent, the Lead Arrangers and the Lenders, including, without limitation, all diligence required for each Lender to complete its Patriot Act and “know your customer” requirements; 89

 

 

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If requested by Administrative Agent, searches of Uniform Commercial(ii) Code filings in the jurisdiction of organization of each Credit Party, copies of the financing statements on file in such jurisdictions and evidence that no Liens exist other than Permitted Liens. There exists no action, suit, investigation or proceeding, pending or(iii) threatened, in any court or before any arbitrator or other Governmental Authority that purports to affect any transaction contemplated hereby or by any of the other Credit Documents, or that will have a Material Adverse Effect on the Parent, the Borrower, their Affiliates or their Subsidiaries, except to the extent approved by the Administrative Agent; Each of the Parent, the Borrower, and their respective Subsidiaries are in(iv) compliance with all terms and covenants set forth herein and in each of the other Credit Documents; and The Administrative Agent, the Lead Arrangers and the Lenders shall(v) have received pro forma financial projections for the Parent, the Borrower and their respective Subsidiaries on a consolidated basis, for Fiscal Years ended December 31, 2021, December 31, 2022, December 31, 2023 and December 31, 2024, respectively, which pro form financial projections shall be acceptable to the Administrative Agent, the Lead Arrangers and the Lenders, in their sole discretion. Funding Notice; Funds Disbursement Instructions. The Administrative Agent(e) shall have received (a) a duly executed Funding Notice with respect to the funding of the Existing Term Loan and any other Credit Extension to occur on the Effective Date (if any) and (b) duly executed disbursement instructions (with wiring instructions and account information) for all disbursements to be made on the Effective Date (if any). Fees and Expenses. The Administrative Agent shall have confirmation that all(f) reasonable and documented out-of-pocket fees and expenses required to be paid on or before the Effective Date have been paid, including the reasonable and documented out-of-pocket fees and expenses of counsel for the Administrative Agent. For purposes of determining compliance with the conditions specified in this Section 5.1, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Effective Date specifying its objection thereto. The funding of the initial Loans hereunder (whether on the Effective Date or on a later Credit Date) shall evidence the satisfaction of the foregoing conditions. Conditions to Term Loan and Each Other Credit Extension.Section 5.2 The obligation of each Revolving Lender to fund its Revolving Commitment Percentage of any Credit Extension on any Credit Date, including the Effective Date, and the obligation of each Term Lender to fund its portion of the Term Loan on any Credit Date, are subject to the satisfaction, or waiver in accordance with Section 11.4, of the following conditions precedent: 90

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the Administrative Agent shall have received a fully executed and delivered(a) Funding Notice, together with the documentation and certifications required therein with respect to each Credit Extension or the Term Loan, as applicable; after making the Credit Extension requested on such Credit Date, the aggregate(b) outstanding principal amount of the Revolving Loans shall not exceed the aggregate Revolving Commitments then in effect; as of such Credit Date or the Effective Date, as applicable, the representations(c) and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects on and as of that date to the same extent as though made on and as of that date (with any representations and warranties which are subject to a materiality qualifier being true and correct in all respects in accordance with the terms thereof), except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; as of such Credit Date or the Effective Date, as applicable, no event shall have(d) occurred and be continuing or would result from the consummation of the applicable Credit Extension or(including the making of thea Term Loan) that would constitute an Event of Default or a Default; and all of the conditions precedent set forth in Section 5.1 shall have been satisfied(e) on or prior to such Credit Date or the Effective Date, as applicable. The Administrative Agent or the Required Lenders shall be entitled, but not obligated to, request and receive, prior to the making of any Credit Extension, additional information reasonably satisfactory to the requesting party confirming the satisfaction of any of the foregoing if, in the reasonable good faith judgment of such Administrative Agent or Required Lenders, such request is warranted under the circumstances. REPRESENTATIONS AND WARRANTIESSection 6 In order to induce the Administrative Agent and the Lenders to enter into this Agreement and to make each Credit Extension to be made thereby and to make the Term Loan on the Effective Date, the Borrower, Parent and each other Credit Party, as applicable, represents and warrants to the Administrative Agent and each of the Lenders, on the Effective Date that: Organization; Requisite Power and Authority; Qualification. Each Credit PartySection 6.1 and Subsidiary (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization as identified in Schedule 6.1, (b) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, (c) as to each Credit Party only, to enter into the Credit Documents to which it is a party and to carry out the transactions contemplated thereby, and (d) is qualified to do business and in good standing in every jurisdiction where necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have, a Material Adverse Effect. The information included in each Beneficial Ownership Certification is true and correct in all respects (on and as of the date delivered). 91

 

 

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Capital Stock and Ownership. Schedule 6.2 correctly sets forth the ownershipSection 6.2 interest of the Borrower in its Subsidiaries as of the Effective Date. The Capital Stock of each Credit Party and its Subsidiaries has been duly authorized and validly issued and, to the extent applicable, is fully paid and non-assessable. Except as set forth on Schedule 6.2, as of the Effective Date, there is no existing option, warrant, call, right, commitment, buy-sell, voting trust or other shareholder agreement or other agreement to which any Subsidiary is a party requiring, and there is no membership interest or other Capital Stock of any Subsidiary outstanding which upon conversion or exchange would require, the issuance by any Subsidiary of any additional membership interests or other Capital Stock of any Subsidiary or other Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Capital Stock of any Subsidiary. Due Authorization. The execution, delivery and performance of the CreditSection 6.3 Documents have been duly authorized by all necessary action on the part of each Credit Party that is a party thereto. No Conflict. The execution, delivery and performance by Credit Parties of theSection 6.4 Credit Documents to which they are parties and the consummation of the transactions contemplated by the Credit Documents do not and will not: (a) violate in any material respect any provision of any Applicable Laws relating to any Credit Party, any of the Organizational Documents of any Credit Party, or any order, judgment or decree of any court or other agency of government binding on any Credit Party; (b) except as would not reasonably be expected to have a Material Adverse Effect, conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any other Contractual Obligations of any Credit Party; (c) result in or require the creation or imposition of any Lien upon any of the properties or assets of any Credit Party (other than any Liens created under any of the Credit Documents in favor of the Administrative Agent for the benefit of the holders of the Obligations) whether now owned or hereafter acquired; or (d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of any Credit Party (other than those which have already been obtained or to the extent the failure to obtain any such approval or consent would not reasonably be expected to have a Material Adverse Effect). Governmental Consents. The execution, delivery and performance by the CreditSection 6.5 Parties of the Credit Documents to which they are parties and the consummation of the transactions contemplated by the Credit Documents do not and will not require, as a condition to the effectiveness thereof, any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority except for any filings, recordings or consents which heretofore have been obtained or made, as applicable. Binding Obligation. Each Credit Document has been duly executed andSection 6.6 delivered by each Credit Party that is a party thereto and is the legally valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its respective terms, except as may be limited by Debtor Relief Laws or by equitable principles relating to enforceability. Financial Statements.Section 6.7 The audited consolidated balance sheet of the Parent and its Subsidiaries for the(a) most recent Fiscal Year ended, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year, including the notes thereto (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (ii) fairly present in all material respects the financial condition of the Consolidated Parties as of the date thereof and their results of 92

 

 

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operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein. The unaudited consolidated balance sheet of the Parent and its Subsidiaries for(b) the most recent Fiscal Quarter ended, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such Fiscal Quarter (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, (ii) fairly present the financial condition of the Consolidated Parties as of the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments, and (iii) show all material indebtedness and other liabilities, direct or contingent, of the Consolidated Parties as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness. The consolidated pro forma balance sheet of the Borrower and its Subsidiaries as(c) the date of the formation of the Parent, and the related consolidated pro forma statements of income and cash flows of the Borrower and its Subsidiaries for the period covered thereby, with a Financial Officer Certification, copies of which have been furnished to each Lender, fairly present the consolidated pro forma financial condition of the Borrower and its Subsidiaries as at such date and the consolidated pro forma results of operations of the Borrower and its Subsidiaries for such period, all in accordance with GAAP. No Material Adverse Effect; No Default.Section 6.8 No Material Adverse Effect. Since December 31, 2020, no event, circumstance(a) or change has occurred that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect. No Default. No Default has occurred and is continuing.(b) Tax Matters. Each Credit Party and its Subsidiaries have filed all federal, stateSection 6.9 and other material tax returns and reports required to be filed, and have paid all federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their respective properties, assets, income, businesses and franchises otherwise due and payable, except those being actively contested in good faith and by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment against any Credit Party or any of its Subsidiaries that would, if made, have a Material Adverse Effect. Properties.Section 6.10 Title. Each of the Credit Parties and its Subsidiaries has (i) good, insurable and(a) fee simple title to (in the case of fee interests in real property), (ii) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (iii) good title to (in the case of all other personal property), all of their respective properties and assets reflected in their financial statements and other information referred to in Section 6.7 and in the most recent financial statements delivered pursuant to Section 7.1, in each case except for assets disposed of since the date of such financial statements as permitted under Section 8.10. All such properties and assets are free and clear of Liens other than Permitted Liens. Real Estate Assets. As of the Effective Date, Schedule 6.10(b) contains a true,(b) accurate and complete list of all Real Estate Assets of the Credit Parties. 93

 

 

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Intellectual Property. Each of the Credit Parties and its Subsidiaries owns or is(c) validly licensed to use all Intellectual Property that is necessary for the present conduct of its business, free and clear of Liens (other than Permitted Liens), without conflict with the rights of any other Person unless the failure to own or benefit from such valid license could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the knowledge of each Credit Party, no Credit Party nor any of its Subsidiaries is infringing, misappropriating, diluting, or otherwise violating the Intellectual Property rights of any other Person unless such infringement, misappropriation, dilution or violation could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Environmental Matters. No Credit Party nor any of its Subsidiaries nor any ofSection 6.11 their respective current Facilities (solely during and with respect to Person’s ownership thereof) or operations, and to their knowledge, no former Facilities (solely during and with respect to any Credit Party or its Subsidiary’s ownership thereof), is or are subject to any outstanding order, ongoing consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; (b) no Credit Party nor any of its Subsidiaries has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law; (c) to each Credit Party’s and its Subsidiaries’ knowledge after due inquiry, there are no, and have been no, Hazardous Materials Activities which could reasonably be expected to form the basis of an Environmental Claim against such Credit Party or any of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; (d) no Credit Party nor any of its Subsidiaries has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility (solely during and with respect to such Credit Party or its Subsidiary’s ownership thereof), and neither the Borrower’s nor any of its Subsidiaries’ operations involves the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260-270 or any equivalent state rule defining hazardous waste. Compliance by the Credit Parties and their respective Subsidiaries with all current requirements pursuant to or under Environmental Laws could not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. No Defaults. No Credit Party nor any of its Subsidiaries is in default in theSection 6.12 performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations (other than Contractual Obligations relating to Indebtedness), except in each case where the consequences, direct or indirect, of such default or defaults, if any, could not reasonably be expected to have a Material Adverse Effect. No Litigation or other Adverse Proceedings. There are no Adverse ProceedingsSection 6.13 that (a) purport to affect or pertain to this Agreement or any other Credit Document, or any of the transactions contemplated hereby or (b) could reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Information Regarding the Borrower and its Subsidiaries. Set forth on ScheduleSection 6.14 6.14, is the jurisdiction of organization, the exact legal name (and for the prior five years or since the date of its formation has been) of the Borrower and each of its Subsidiaries and the true and correct U.S. taxpayer identification number (or foreign equivalent, if any) of the Borrower, in each case as of the Effective Date. Governmental Regulation.Section 6.15 94

 

 

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N o C r e d i t P a r t y n o r a n y o f i t s S ub s i d i a r i e s i s s ubj e c t t o r e g u l a t i o n u n d e r t h e ( a ) I n v e s t m e n t C o m p a n y A c t o f 1 9 4 0. N o C r e d i t P a r t y n o r a n y o f i t s S ub s i d i a r i e s i s a n “ i n v e s t m e n t c o m p a n y ” o r a c o m p a n y “ c o n t r o l l e d ” b y a “ r e g i s t e r e d i n v e s t m e n t c o m p a n y ” o r a “ p r i n c i p a l u n d e r w r i t e r ” o f a “ r e g i s t e r e d i n v e s t m e n t c o m p a n y ” a s s u c h t e r m s a r e d e fi n e d i n t h e I n v e s t m e n t C o m p a n y A c t o f 1 9 4 0. N o C r e d i t P a r t y n o r a n y o f i t s S ub s i d i a r i e s i s a n “ e n e m y ” o r a n “ a l l y o f t h e ( b ) e n e m y ” w i t h i n t h e m e a n i n g o f S e c t i o n 2 o f t h e Tr a d i n g w i t h t h e E n e m y A c t o f t h e U n i t e d S t a t e s o f A m e r i c a ( 5 0 U.S.C. A p p. § § 1 e t s e q.). To i t s kn o w l e d g e, n o C r e d i t P a r t y n o r a n y o f i t s S ub s i d i a r i e s i s i n v i o l a t i o n o f ( a ) t h e Tr a d i n g w i t h t h e E n e m y A c t, ( b ) a n y o f t h e fo r e i g n a s s e t s c o n t r o l r e g u l a t i o n s o f t h e U n i t e d S t a t e s Tr e a s u r y D e p a r t m e n t ( 3 1 C F R, S u b t i t l e B, C h ap t e r V ) o r a n y e n a b l i n g l e g i s l a t i o n o r e x e c u t i v e o r d e r r e l a t i n g t h e r e t o o r ( c ) t h e P a t r i o t A c t. N o C r e d i t P a r t y n o r a n y o f i t s S u b s i d i a r i e s ( i ) i s a b l o c k e d p e r s o n d e s c r i b e d i n S e c t i o n 1 o f t h e A n t i - Te r r o r i s m O r d e r o r ( i i ) t o i t s k n o w l e d g e, e n g a g e s i n a n y d e a l i n g s o r t r a n s a c t i o n s, o r i s o t h e r w i s e a s s o c i a t e d, w i t h a n y s u c h b l o c k e d p e r s o n. N o n e o f t h e C r e d i t P a r t i e s o r t h e i r S u b s i d i a r i e s o r t h e i r r e s p e c t i v e A ffi l i a t e s i s i n ( c ) v i o l a t i o n o f a n y o f t h e c o u n t r y o r l i s t b a s e d e c o n o m i c a n d t r a d e s a n c t i o n s a d m i n i s t e r e d a n d e n fo r c e d b y O FA C t h a t a r e d e s c r i b e d o r r e fe r e n c e d a t h t tp:// w w w.u s t r e a s.g o v / o ffi c e s / e n fo r c e m e n t/ o fa c / o r a s o t h e r w i s e p u b l i s h e d fr o m t i m e t o t i m e. N o n e o f t h e C r e d i t P a r t i e s o r t h e i r S u b s i d i a r i e s o r t h e i r r e s p e c t i v e A ffi l i a t e s ( i ) i s ( d ) a S a n c t i o n e d P e r s o n o r a S a n c t i o n e d E n t i t y, ( i i ) h a s a n y o f i t s a s s e t s l o c a t e d i n S a n c t i o n e d E n t i t i e s, o r ( i i i ) d e r i v e s a n y o f i t s o p e r a t i n g i n c o m e fr o m i n v e s t m e n t s i n, o r t r a n s a c t i o n s w i t h S a n c t i o n e d P e r s o n s o r S a n c t i o n e d E n t i t i e s. T h e p r o c e e d s o f a n y L o a n w i l l n o t b e u s e d a n d h a v e n o t b e e n u s e d t o fu n d a n y o p e r a t i o n s i n, fi n a n c e a n y i n v e s t m e n t s o r a c t i v i t i e s i n o r m a k e a n y p a y m e n t s t o, a S a n c t i o n e d P e r s o n o r a S a n c t i o n e d E n t i t y. E a c h C r e d i t P a r t y a n d i t s S ub s i d i a r i e s i s i n c o m p l i a n c e w i t h t h e F o r e i g n C o rrup t ( e ) P r a c t i c e s A c t, 1 5 U.S.C. § § 7 8 d d - 1, e t s e q., a n d a n y fo r e i g n c o u n t e rp a r t t h e r e t o. N o n e o f t h e C r e d i t P a r t i e s o r t h e i r r e s p e c t i v e S u b s i d i a r i e s h a s m a d e a p a y m e n t, o ffe r i n g, o r p r o m i s e t o p a y, o r a u t h o r i z e d t h e p a y m e n t o f, m o n e y o r a n y t h i n g o f v a l u e o r h a s u s e d o r w i l l u s e t h e p r o c e e d s o f a n y L o a n ( a ) i n o r d e r t o a s s i s t i n o b t a i n i n g o r r e t a i n i n g b u s i n e s s fo r o r w i t h, o r d i r e c t i n g b u s i n e s s t o, a n y fo r e i g n o ffi c i a l, fo r e i g n p o l i t i c a l p a r t y, p a r t y o ffi c i a l o r c a n d i d a t e fo r fo r e i g n p o l i t i c a l o ffi c e, ( b ) t o a fo r e i g n o ffi c i a l, fo r e i g n p o l i t i c a l p a r t y o r p a r t y o ffi c i a l o r a n y c a n d i d a t e fo r fo r e i g n p o l i t i c a l o ffi c e, a n d ( c ) w i t h t h e i n t e n t t o i n du c e t h e r e c i p i e n t t o m i s u s e h i s o r h e r o ffi c i a l p o s i t i o n t o d i r e c t b u s i n e s s w r o n g fu l l y t o s u c h C r e d i t P a r t y o r a n y o f i t s S u b s i d i a r i e s o r t o a n y o t h e r P e r s o n, i n v i o l a t i o n o f t h e F o r e i g n C o r rup t P r a c t i c e s A c t, 1 5 U.S.C. § § 7 8 d d - 1, e t s e q. To t h e e x t e n t ap p l i c a b l e, e a c h C r e d i t P a r t y a n d i t s S u b s i d i a r i e s a r e i n c o m p l i a n c e ( f) w i t h U n i t i n g a n d S t r e n g t h e n i n g A m e r i c a b y P r o v i d i n g A p p r o p r i a t e To o l s R e q u i r e d t o I n t e r c e p t a n d O b s t ru c t Te r r o r i s m ( U S A P a t r i o t A c t o f 2 0 0 1 ) ( a s a m e n d e d fr o m t i m e t o t i m e, t h e “ P a t r i o t A c t ” ). N o C r e d i t P a r t y o r a n y o f i t s S u b s i d i a r i e s i s e n g a g e d p r i n c i p a l l y, o r a s o n e o f i t s ( g ) i m p o r t a n t a c t i v i t i e s, i n t h e b u s i n e s s o f e x t e n d i n g c r e d i t fo r t h e p u rp o s e o f p u r c h a s i n g o r c a r r y i n g a n y M a r g i n S t o c k. N o p a r t o f t h e p r o c e e d s o f t h e L o a n s m a d e t o s u c h C r e d i t P a r t y w i l l b e u s e d t o p u r c h a s e o r c a r r y a n y s u c h M a r g i n S t o c k o r t o e x t e n d c r e d i t t o o t h e r s fo r t h e p u rp o s e o f p u r c h a s i n g o r c a r r y i n g a n y s u c h M a r g i n S t o c k o r fo r a n y p u rp o s e t h a t v i o l a t e s, o r i s i n c o n s i s t e n t w i t h, t h e p r o v i s i o n s o f R e g u l a t i o n T, U o r X o f t h e F R B a s i n e ffe c t fr o m t i m e t o t i m e. 9 5

 

 

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Notwithstanding anything to the contrary contained in this Section 6.15, no representation or warranty is made with respect to any Person (other than a Credit Party or a Related Party with respect to a Credit Party) that owns or holds Capital Stock of the Parent or the Borrower or any of their respective Subsidiaries or Affiliates. Employee Matters. No Credit Party nor any of its Subsidiaries is engaged in anySection 6.16 unfair labor practice that could reasonably be expected to have a Material Adverse Effect. There is (a) no unfair labor practice complaint pending against any Credit Party or any of its Subsidiaries, or to the best knowledge of each Credit Party, threatened against any of them before the National Labor Relations Board and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against any Credit Party or any of its Subsidiaries or to the best knowledge of each Credit Party, threatened against any of them, (b) no strike or work stoppage in existence or to the knowledge of each Credit Party, threatened that involves any Credit Party or any of its Subsidiaries, and (c) to the best knowledge of each Credit Party, no union representation question existing with respect to the employees of any Credit Party or any of its Subsidiaries and, to the best knowledge of each Credit Party, no union organization activity that is taking place, except (with respect to any matter specified in clause (a), (b) or (c) above, either individually or in the aggregate) such as could not reasonably be expected to have a Material Adverse Effect. Pension Plans. (a) Except as could not reasonably be expected to have aSection 6.17 Material Adverse Effect, each of the Credit Parties and their Subsidiaries are in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code and the regulations and published interpretations thereunder with respect to its Pension Plan, and have performed all their obligations under each Pension Plan in all material respects, (b) each Pension Plan which is intended to qualify under Section 401(a) of the Internal Revenue Code has received a favorable determination letter or is the subject of a favorable opinion letter from the Internal Revenue Service indicating that such Pension Plan is so qualified and, to the best knowledge of the Credit Parties, nothing has occurred subsequent to the issuance of such determination letter which would cause such Pension Plan to lose its qualified status except where such event could not reasonably be expected to result in a Material Adverse Effect, (c) except as could not reasonably be expected to have a Material Adverse Effect, no liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Pension Plan (other than for routine claims and required funding obligations in the ordinary course) or any trust established under Title IV of ERISA has been incurred by any Credit Party, any of its Subsidiaries or any of their ERISAAffiliates, (d) except as would not reasonably be expected to have a Material Adverse Effect, no ERISA Event has occurred, and except to the extent required under Section 4980B of the Internal Revenue Code and Section 601 et seq. of ERISA or similar state laws and except as could not reasonably be expected to have a Material Adverse Effect, no Pension Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of any Credit Party or any of their Subsidiaries. Solvency.The Borrower, the Parent and the other Credit Parties taken as a whole,Section 6.18 are, and on each Credit Date will be, Solvent. Compliance with Laws. Each Credit Party and its Subsidiaries is in complianceSection 6.19 with (a) the Patriot Act and OFAC rules and regulations as provided in Section 6.15 and (b) except such noncompliance with such other Applicable Laws that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, all other Applicable Laws. Each Credit Party and its Subsidiaries possesses all certificates, authorities or permits issued by appropriate Governmental Authorities necessary to conduct the business now operated by them and the failure of which to have could reasonably be expected to have a Material Adverse Effect and have not received any notice of proceedings relating to the revocation or modification of any such certificate, authority or 96

 

 

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permit the failure of which to have or retain could reasonably be expected to have a Material Adverse Effect. The information included in the Beneficial Ownership Certification is true and correct in all respects. Disclosure. No representation or warranty of any Credit Party contained in anySection 6.20 Credit Document or in any other documents, certificates or written statements furnished to the Lenders by or on behalf of the Borrower or any of its Subsidiaries for use in connection with the transactions contemplated hereby (other than projections and pro forma financial information contained in such materials) contains any untrue statement of a material fact or omits to state a material fact (known to any Credit Party, in the case of any document not furnished by any of them) necessary in order to make the statements contained herein or therein not misleading in any material manner in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Credit Parties to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results and that such differences may be material. There are no facts known to any Credit Party (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have not been disclosed herein or in such other documents, certificates and statements furnished to the Lenders. Insurance; No Casualty or Condemnation. The properties of the Credit PartiesSection 6.21 and their Subsidiaries are insured with financially sound and reputable insurance companies that are not Affiliates of such Persons, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Credit Party or the applicable Subsidiary operates. As of the Effective Date, to the best of Borrower’s knowledge no uninsured casualty has occurred and no condemnation or condemnation proceeding shall have been instituted with respect to any of the Real Estate Assets owned by each Credit Party and its Subsidiaries. Healthcare Facility Representations and Warranties.Compliance WithSection 6.22 Healthcare Laws. Without limiting the generality of Section 6.19 hereof or any other representation or warranty made herein, no Credit Party or Subsidiary and, to the knowledge of the Credit Parties, no tenant, is in material violation of any applicable statutes, laws, ordinances, rules and regulations of any Governmental Authority with respect to regulatory matters primarily relating to patient healthcare (including without limitation Section 1128B of the Social Security Act, as amended, 42 U.S.C. Section 1320a 7b (Criminal Penalties Involving Medicare or State Health Care Programs), commonly referred to as the “Federal Anti-Kickback Statute,” and Section 1877 of the Social Security Act, as amended, 42 U.S.C. Section 1395nn (Prohibition Against Certain Referrals), commonly referred to as “Stark Statute” (collectively, “Healthcare Laws”) where such violation would result in a Material Adverse Effect. The Credit Parties and, to the knowledge of the Credit Parties, each of the tenants, have maintained in all material respects all records required to be maintained by the Food and Drug Administration, Drug Enforcement Agency and State Boards of Pharmacy and the federal and state Medicare and Medicaid programs as required by the Healthcare Laws and, to the knowledge of the Credit Parties, there are no notices of material violations of the Healthcare Laws with respect to any Credit Party, any tenant or any of the Real Estate Assets owned by any Credit Party. Licenses, Permits, and Certifications.(b) 97

 

 

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To the knowledge of the Credit Parties and each Unencumbered(i) Property Owner, each tenant has such permits, licenses, franchises, certificates and other approvals or authorizations of Governmental Authorities as are necessary under applicable law or regulations to own its properties and to conduct its business and to receive reimbursement under Medicare and Medicaid (including without limitation such permits as are required under such federal, state and other health care laws, and under such HMO or similar licensure laws and such insurance laws and regulations, as are applicable thereto), if the failure to obtain such permits, licenses, franchises, certificates and other approvals or authorizations could reasonably be expected to result in a Material Adverse Effect. Notwithstanding the foregoing, no Credit Party or Unencumbered Property Owner is the owner of any licenses or permits required for the provision of Medical Services at any of the Real Estate Assets owned by any Credit Party or Unencumbered Property Owner. To the knowledge of the Credit Parties and each Unencumbered(ii) Property Owner, each tenant has all Medicare, Medicaid and related agency supplier billing number(s) and related documentation necessary to receive reimbursement from Medicare and/or Medicaid for any Medical Service furnished by such Person in any jurisdiction where it conducts business if the failure to obtain billing number(s) or related documentation could reasonably be expected to result in a Material Adverse Effect. To the knowledge of the Credit Parties or any Unencumbered Property Owner, no tenant is currently subject to suspension, revocation, renewal or denial of its Medicare and/or Medicaid certification, supplier billing number(s), or Medicare and/or Medicaid participation agreement(s). HIPAA Compliance. No Credit Party or Unencumbered Property Owner is a(c) “covered entity” within the meaning of HIPAA. In addition, to the knowledge of the Credit Parties or any Unencumbered Property Owner, no Credit Party or Unencumbered Property Owner is the subject of any civil or criminal penalty, process, claim, action or proceeding, or any administrative or other regulatory review, survey, process or proceeding (other than routine surveys or reviews conducted by any government health plan or other accreditation entity) that could reasonably be expected to cause a Material Adverse Effect. Medical Services. No Credit Party or Unencumbered Property Owner is in the(d) business of providing Medical Services. REIT Status. Commencing with the short taxable year ending December 31,Section 6.23 2013, the Parent has been organized and operating in conformity with the requirements for qualification and taxation as a REIT. The Borrower is a partnership or other disregarded entity for federal income tax purposes under the Internal Revenue Code. Unencumbered Properties. Schedule 6.24 is a true and complete list of sets forthSection 6.24 a list of all Unencumbered Properties and the owner (or ground-lessor) of such Unencumbered Properties as of the Effective Date. All such Unencumbered Properties satisfy the requirements for an Unencumbered Properties set forth in the definition thereof. AFFIRMATIVE COVENANTSSection 7 Each Credit Party covenants and agrees that until the date on which the Obligations shall have been paid in full or otherwise satisfied (other than with respect to contingent indemnification obligations 98

 

 

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fo r w h i c h n o c l a i m h a s b e e n m a d e a n d L e t t e r s o f C r e d i t t h a t h a v e b e e n C a s h C o l l a t e r a l i z e d a n d o t h e r o b l i g a t i o n s o f e a c h C r e d i t P a r t y h e r e u n d e r o r u n d e r a n y o t h e r C r e d i t D o c u m e n t w h i c h, b y t h e i r e x p r e s s t e r m s, s u r v i v e s u c h p a y m e n t i n fu l l o r s a t i s fa c t i o n ), a n d t h e C o m m i t m e n t s h e r e u n d e r s h a l l h a v e e x p i r e d o r b e e n t e r m i n a t e d ( s u c h d a t e, t h e “ Te r m i n a t i o n D a t e ” ), s u c h C r e d i t P a r t y s h a l l p e r fo r m, a n d s h a l l c a u s e e a c h o f i t s S ub s i d i a r i e s t o p e r fo r m, a l l c o v e n a n t s i n t h i s S e c t i o n 7. F i n a n c i a l S t a t e m e n t s a n d O t h e r R e p o r t s. T h e B o rr o w e r w i l l d e l i v e r, o r w i l l S e c t i o n 7.1 c a u s e t o b e d e l i v e r e d, t o t h e A d m i n i s t r a t i v e A g e n t ( o n b e h a l f o f t h e L e n d e r s ): Q u a r t e r l y F i n a n c i a l S t a t e m e n t s fo r t h e P a r e n t a n d i t s S ub s i d i a r i e s. A s s o o n a s ( a ) a v a i l a b l e a n d i n n o e v e n t l a t e r t h a n t h e e a r l i e r o f ( i ) t h e d a t e t h a t i s fo r t y - fi v e ( 4 5 ) d a y s a ft e r t h e e n d o f e a c h F i s c a l Q u a r t e r o f e a c h F i s c a l Ye a r ( e x c l u d i n g t h e fo u r t h F i s c a l Q u a r t e r ), o r ( i i ) t h e d a t e t h a t i s t e n ( 1 0 ) d a y s a ft e r t h e fi l i n g o f P a r e n t’s Q u a r t e r l y R e p o r t o n F o r m 1 0 - Q w i t h t h e S E C fo r s u c h F i s c a l Q u a r t e r, t h e c o n s o l i d a t e d b a l a n c e s h e e t s o f t h e P a r e n t a n d i t s S u b s i d i a r i e s a s a t t h e e n d o f s u c h F i s c a l Q u a r t e r a n d t h e r e l a t e d c o n s o l i d a t e d s t a t e m e n t s o f i n c o m e, s t o c k h o l d e r s’ e q u i t y a n d c a s h fl o w s o f t h e P a r e n t a n d i t s S u b s i d i a r i e s fo r s u c h F i s c a l Q u a r t e r a n d fo r t h e p e r i o d fr o m t h e b e g i n n i n g o f t h e t h e n c u r r e n t F i s c a l Ye a r t o t h e e n d o f s u c h F i s c a l Q u a r t e r, s e t t i n g fo r t h i n e a c h c a s e i n c o m p a r a t i v e fo r m t h e c o r r e s p o n d i n g fi g u r e s fo r t h e c o r r e s p o n d i n g p e r i o d s o f t h e p r e v i o u s F i s c a l Ye a r, a l l i n r e a s o n a b l e d e t a i l, t o g e t h e r w i t h a F i n a n c i a l O ffi c e r C e r t i fi c a t i o n w i t h r e s p e c t t h e r e t o; A u d i t e d A n n u a l F i n a n c i a l S t a t e m e n t s fo r t h e P a r e n t a n d i t s S u b s i d i a r i e s. A s ( b ) s o o n a s a v a i l a b l e a n d i n n o e v e n t l a t e r t h a n t h e e a r l i e r o f ( x ) t h e d a t e t h a t i s n i n e t y ( 9 0 ) d a y s a ft e r t h e e n d o f e a c h F i s c a l Ye a r, o r ( y ) t h e d a t e t h a t i s t e n ( 1 0 ) d a y s a ft e r t h e fi l i n g o f P a r e n t’s A n n u a l R e p o r t o n F o r m 1 0 - K w i t h t h e S E C fo r s u c h F i s c a l Ye a r, ( i ) t h e c o n s o l i d a t e d b a l a n c e s h e e t s o f t h e P a r e n t a n d i t s S ub s i d i a r i e s a s a t t h e e n d o f s u c h F i s c a l Ye a r a n d t h e r e l a t e d c o n s o l i d a t e d s t a t e m e n t s o f i n c o m e, s t o c k h o l d e r s’ e q u i t y a n d c a s h fl o w s o f t h e P a r e n t a n d i t s S ub s i d i a r i e s fo r s u c h F i s c a l Ye a r, s e t t i n g fo r t h i n e a c h c a s e i n c o m p a r a t i v e fo r m t h e c o rr e s p o n d i n g fi g u r e s fo r t h e p r e v i o u s F i s c a l Ye a r, i n r e a s o n a b l e d e t a i l, t o g e t h e r w i t h a F i n a n c i a l O ffi c e r C e r t i fi c a t i o n w i t h r e s p e c t t h e r e t o; a n d ( i i ) w i t h r e s p e c t t o s u c h c o n s o l i d a t e d fi n a n c i a l s t a t e m e n t s a r e p o r t t h e r e o n o f E rn s t & Yo u n g L L P o r o t h e r i n d e p e n d e n t c e r t i fi e d p ub l i c a c c o u n t a n t s o f r e c o g n i z e d n a t i o n a l s t a n d i n g s e l e c t e d b y t h e P a r e n t, w h i c h r e p o r t s h a l l b e u n q u a l i fi e d a s t o g o i n g c o n c e rn a n d s c o p e o f a u d i t, a n d s h a l l s t a t e t h a t s u c h c o n s o l i d a t e d fi n a n c i a l s t a t e m e n t s fa i r l y p r e s e n t, i n a l l m a t e r i a l r e s p e c t s, t h e c o n s o l i d a t e d fi n a n c i a l p o s i t i o n o f t h e P a r e n t a n d i t s S u b s i d i a r i e s a s a t t h e d a t e s i n d i c a t e d a n d t h e r e s u l t s o f t h e i r o p e r a t i o n s a n d t h e i r c a s h fl o w s fo r t h e p e r i o d s i n d i c a t e d i n c o n fo r m i t y w i t h G A A P ap p l i e d o n a b a s i s c o n s i s t e n t w i t h p r i o r y e a r s ( e x c e p t a s o t h e r w i s e d i s c l o s e d i n s u c h fi n a n c i a l s t a t e m e n t s ) a n d t h a t t h e e x a m i n a t i o n b y s u c h a c c o u n t a n t s i n c o n n e c t i o n w i t h s u c h c o n s o l i d a t e d fi n a n c i a l s t a t e m e n t s h a s b e e n m a d e i n a c c o r d a n c e w i t h g e n e r a l l y a c c e p t e d a u d i t i n g s t a n d a r d s ); C o m p l i a n c e C e r t i fi c a t e.( c ) To g e t h e r w i t h e a c h d e l i v e r y o f t h e fi n a n c i a l s t a t e m e n t s p u r s u a n t t o ( i ) c l a u s e s ( a ) a n d ( b ) o f S e c t i o n 7.1, a du l y c o m p l e t e d C o m p l i a n c e C e r t i fi c a t e ( i n c l u d i n g a l l b a c k - up c a l c u l a t i o n s ); a n d To g e t h e r w i t h e a c h d e l i v e r y o f t h e fi n a n c i a l s t a t e m e n t s p u r s u a n t t o ( i i ) c l a u s e s ( a ) a n d ( b ) o f S e c t i o n 7.1. A n n u a l B u d g e t; A c tu a l C ap i t a l E x p e n d i tu r e s. A s s o o n a s a v a i l a b l e, b u t i n a n y ( d ) e v e n t o n o r p r i o r M a r c h 1 s t o f e a c h c a l e n d a r y e a r, a n d i n e a c h c a s e r e a s o n a b l y a c c e p t a b l e t o t h e 9 9

 

 

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Administrative Agent quarterly forecasts prepared by management of the Parent or the Borrower of consolidated balance sheets and statements of income or operations and cash flows of the Parent and its Subsidiaries for the Fiscal Year beginning on January 1st of such year; Information Regarding Credit Parties. Each Credit Party will furnish to the(e) Administrative Agent prompt written notice of any change (i) in such Credit Party’s legal name, (ii) in such Credit Party’s corporate organizational structure, or (iii) in such Credit Party’s Federal Taxpayer Identification Number; SEC Filings. Promptly after the same are filed, copies of all annual, regular,(f) periodic and special reports and registration statements that the Parent may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, provided that any documents required to be delivered pursuant to this Section 7.1(f) shall be deemed to have been delivered on the date (i) on which the Parent posts such documents, or provides a link thereto on the Parent’s website; or (ii) on which such documents are posted on the Borrower’s behalf on Debtdomain or another relevant website, if any to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided further that: (x) upon written request by the Administrative Agent, the Borrower shall deliver paper copies of such documents to the Administrative Agent for further distribution to each Lender until a written request to cease delivering paper copies is given by the Administrative Agent and (y) the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the posting of any such documents and, upon written request by the Administrative Agent, provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding anything to the contrary, as to any information contained in materials furnished pursuant to this Section 7.1(f), the Borrower shall not be separately required to furnish such information under Sections 7.1(a) or (b) above or pursuant to any other requirement of this Agreement or any other Credit Document; Notice of Default and Material Adverse Effect. Promptly upon any Authorized(g) Officer of any Credit Party obtaining knowledge (i) of any condition or event (including, without limitation, any Adverse Proceeding) that constitutes a Default or an Event of Default or that notice has been given to any Credit Party with respect thereto; (ii) that any Person has given any notice to any Credit Party or any of its Subsidiaries or taken any other action with respect to any event or condition set forth in Section 9.1(b), or (iii) the occurrence of any Material Adverse Effect, a certificate of its Authorized Officers specifying the nature and period of existence of such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, event or condition or change, and what action the Credit Parties have taken, are taking and propose to take with respect thereto; ERISA. (i) Promptly upon becoming aware of the occurrence of or forthcoming(h) occurrence of any ERISA Event which individually or in the aggregate results in liability of any Credit Party, any of its Subsidiaries or any of their respective ERISAAffiliates in excess of $2,000,000, a written notice specifying the nature thereof, what action any Credit Party, any of its Subsidiaries or any of their respective ERISAAffiliates has taken, is taking or proposes to take with respect thereto and, when known, any action taken or threatened in writing by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and (ii) (1) promptly upon reasonable request of the Administrative Agent, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by any Credit Party, any of its Subsidiaries or any of their respective ERISAAffiliates with respect to each Pension Plan; and (2) promptly after their receipt, copies of all notices received by any Credit Party, any of its Subsidiaries or any of their respective ERISAAffiliates from a Multiemployer Plan sponsor 100

 

 

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concerning an ERISA Event which individually or in the aggregate results in liability of any Credit Party, any of its Subsidiaries or any of their respective ERISAAffiliates in excess of $2,000,000; SEC Investigations. Promptly, and in any event within five (5) Business Days(i) after receipt thereof by any Credit Party or any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other material inquiry (other than comment letters related to SEC filings) by such agency regarding financial or other operational results of any Credit Party or any Subsidiary thereof; and Sustainability Rating. Prompt notice to Administrative Agent of any(j) discontinuation of the Sustainability Rating after an Authorized Officer becomes aware of such event. Other Information. (i) Promptly upon their becoming available, copies of all(k) financial statements, reports, notices and proxy statements and other communications sent or made available generally by the Parent to its security holders acting in such capacity or by any Subsidiary of the Parent to its security holders, if any, other than the Parent or another Subsidiary of the Parent, provided that no Credit Party shall be required to deliver to the Administrative Agent or any Lender the minutes of any meeting of its Board of Directors, and (ii) such other information and data with respect to the Parent or any of its Subsidiaries as from time to time may be reasonably requested by the Administrative Agent or the Required Lenders. Each notice pursuant to clauses (g) and (h) of this Section 7.1 shall be accompanied by a statement of an Authorized Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower and/or the other applicable Credit Party has taken and proposes to take with respect thereto. Each notice pursuant to Section 7.1(g) shall describe with particularity any and all provisions of this Agreement and any other Credit Document that have been breached. Existence. Each Credit Party will, and will cause each of its Subsidiaries to, atSection 7.2 all times preserve and keep in full force and effect (a) its existence under the laws of its jurisdiction of formation or organization, and (b) all rights and franchises, licenses and permits material to its business, except in either case to the extent permitted by Section 8.10 or not constituting an Asset Sale hereunder. Payment of Taxes and Claims. The Borrower, the Parent and eachSection 7.3 Unencumbered Property Owner will, and will cause each of its respective Subsidiaries to, pay (a) all federal, state and other material taxes imposed upon it or any of its properties or assets or in respect of any of its income, businesses or franchises before any penalty or fine accrues thereon and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its properties or assets, prior to the time when any penalty or fine shall be incurred with respect thereto; provided, no such tax or claim need be paid if it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as adequate reserve or other appropriate provision, as shall be required in conformity with GAAP shall have been made therefor. The Borrower will not, nor will it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income tax return with any Person (other than the Borrower or any Subsidiary). Maintenance of Properties. Each Credit Party will, and will cause each of itsSection 7.4 Subsidiaries to, maintain or cause to be maintained in good repair, working order and condition, ordinary 101

 

 

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wear and tear excepted, all material properties used or useful in the business of any Credit Party and its Subsidiaries and from time to time will make or cause to be made all appropriate repairs, renewals and replacements thereof. Insurance. The Credit Parties will maintain or cause to be maintained, withSection 7.5 financially sound and reputable insurers, property insurance, such public liability insurance, third party property damage insurance with respect to liabilities, losses or damage in respect of the assets, properties and businesses of each Credit Party and its Subsidiaries as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons. Each Credit Party and its Subsidiaries shall at all times comply in all material respects with the requirements of the insurance policies required hereunder and of the issuers of such policies and of any board of fire underwriters or similar body as applicable to or affecting any property. Inspections. Borrower and Parent will, and will cause each of its respectiveSection 7.6 Subsidiaries to, permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to conduct field audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that so long as no Event of Default exists, the Borrower shall not be obligated to pay for more than one (1) such inspection per year; provided, further, that when an Event of Default exists, the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice. Lenders Meetings. The Borrower will, upon the request of the AdministrativeSection 7.7 Agent or the Required Lenders, participate in a meeting of the Administrative Agent and the Lenders once during each Fiscal Year to be held at the Borrower’s corporate offices (or at such other location as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent. Compliance with Laws and Material Contracts. Each Credit Party will comply,Section 7.8 and shall cause each of its Subsidiaries and all other Persons, if any, on or occupying any Facilities to comply, with (a) the Patriot Act and OFAC rules and regulations, (b) all other Applicable Laws and (c) all Material Contracts, noncompliance with, with respect to clauses (b) and (c), could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Promptly following any request therefor, the Credit Parties shall deliver information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and Anti-Money Laundering rules and regulations, including, without limitation, the Patriot Act and the Beneficial Ownership Regulation. Use of Proceeds. The Credit Parties will use the proceeds of the CreditSection 7.9 Extensions and the Term Loan for (a) working capital, capital expenditures, payment of dividends and redemptions, and other lawful corporate purposes (including, but not limited to, the acquisition of Healthcare Facilities), and (b) to pay transaction fees, costs and expenses related to credit facilities established pursuant to this Agreement and the other Credit Documents, in each case not in contravention of Applicable Laws or of any Credit Document. No portion of the proceeds of any Credit Extension or the Term Loan shall be used in any manner that causes or might cause such Credit Extension or the Term 102

 

 

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Loan or the application of such proceeds to violate Regulation T, Regulation U or Regulation X of the FRB as in effect from time to time or any other regulation thereof or to violate the Exchange Act. Environmental Matters.Section 7.10 Environmental Disclosure. Each Credit Party will deliver to the Administrative(a) Agent and the Lenders with reasonable promptness, such documents and information as from time to time may be reasonably requested by the Administrative Agent or any Lender. Hazardous Materials Activities, Etc. The Borrower shall promptly take, and(b) shall cause each of its Subsidiaries promptly to take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by such Credit Party or its Subsidiaries that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and (ii) respond to any Environmental Claim against such Credit Party or any of its Subsidiaries and discharge any obligations it may have to any Person thereunder where failure to do so could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Books and Records. Each Credit Party will keep proper books of record andSection 7.11 account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities to the extent necessary to prepare the consolidated financial statements of the Parent in conformity with GAAP. Additional Subsidiaries.Section 7.12 Subject to Section 7.12(c) below, within thirty (30) days (or such later time as the Administrative Agent may agree, not to exceed an additional thirty (30) days) after the occurrence of any event described in Section 7.12(b)(i) or (ii) below with respect to any Material Subsidiary, the Borrower and the other Credit Parties shall: [Reserved];(a) cause such Person to become a Guarantor by executing and delivering to the(b) Administrative Agent a Guarantor Joinder Agreement or such other documents as the Administrative Agent shall deem appropriate for such purpose, and (ii) deliver to the Administrative Agent documents of the types referred to in Section 5.1(b), and favorable opinions of counsel to such joining Guarantor (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in the immediately foregoing clause (i)), all in form, content and scope reasonably satisfactory to the Administrative Agent; provided that the foregoing requirements of this clause (b) shall apply only if: Such Material Subsidiary which is an Unencumbered Property Owner or(i) any other Subsidiary that directly or indirectly own an Equity Interest in such Material Subsidiary, becomes obligated in respect of, any Indebtedness of Parent, the Borrower or any Subsidiary of the Parent or Borrower; or As to any other Material Subsidiary; such Material Subsidiary (or any(ii) other Subsidiary that directly or indirectly own an Equity Interest in such Material Subsidiary) Guarantees, or otherwise becomes obligated in respect of, any Indebtedness of Parent, the Borrower or any Subsidiary of the Parent or Borrower, unless the terms of such Indebtedness prohibit the execution of such guaranty. 103

 

 

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N o t w i t h s t a n d i n g t h e fo r e g o i n g o r a n y t h i n g t o t h e c o n t r a ry i n t h e C r e d i t ( c ) D o c u m e n t s, n o s u c h S ub s i d i a ry s h a l l b e r e q u i r e d t o b e c o m e a G u a r a n t o r u n d e r S e c t i o n 7.1 2 ( b ) ( i i ) i f s u c h S ub s i d i a r y ( I ) i s a n E x c l u d e d S ub s i d i a ry o r a F o r e i g n S ub s i d i a r y, o r ( I I ) i s e x p r e s s l y p r o h i b i t e d i n w r i t i n g fr o m g u a r a n t e e i n g I n d e b t e d n e s s o f a n y o t h e r P e r s o n p u r s u a n t t o ( x ) a p r o v i s i o n i n a n y d o c u m e n t, i n s t ru m e n t o r a g r e e m e n t e v i d e n c i n g I n d e b t e d n e s s o r o t h e r m a t e r i a l a g r e e m e n t o f s u c h S ub s i d i a ry, ( y ) a p r o v i s i o n o f s u c h S ub s i d i a ry's O r g a n i z a t i o n a l D o c u m e n t s t o t h e e x t e n t r e q u i r e d b y a n o t h e r h o l d e r o f t h e C ap i t a l S t o c k o f s u c h S ub s i d i a ry i n c o n n e c t i o n w i t h t h e fo r m a t i o n t h e r e o f o r ( z ) a p r o v i s i o n o f s u c h S ub s i d i a ry's O r g a n i z a t i o n a l D o c u m e n t s, w h i c h p r o v i s i o n w a s i n c l u d e d i n s u c h O r g a n i z a t i o n a l D o c u m e n t o r s u c h o t h e r d o c u m e n t, i n s t ru m e n t o r a g r e e m e n t a s a n e x p r e s s c o n d i t i o n t o t h e e x t e n s i o n o f I n d e b t e d n e s s t o s u c h S u b s i d i a r y b y a n y o f a t h i r d p a r t y c r e d i t o r p r o v i d i n g t h e s u bj e c t fi n a n c i n g, a n y o t h e r t h i r d - p a r t y g u a r a n t o r t h e r e o f o r a n y r a t i n g a g e n c y i n r e s p e c t t h e r e o f, o r w a s i n c l u d e d i n s u c h O r g a n i z a t i o n a l D o c u m e n t s i n c o n t e m p l a t i o n o f s u c h S u b s i d i a r y’s e n t e r i n g i n t o a n y s u c h I n d e b t e d n e s s o r o t h e r m a t e r i a l a g r e e m e n t; p r o v i d e d, t h a t i f ( A ) a n y S u b s i d i a r y q u a l i fy i n g a s a n E x c l u d e d S u b s i d i a r y a s o f t h e d a t e o f i t s a c q u i s i t i o n o r fo r m a t i o n c e a s e s t o q u a l i fy a s a n E x c l u d e d S u b s i d i a r y, o r ( B ) t h e ap p l i c a b l e p r o h i b i t i o n a g a i n s t g u a r a n t e e i n g I n d e b t e d n e s s o f a n y o t h e r P e r s o n s h a l l n o l o n g e r b e i n e ffe c t w i t h r e s p e c t t o a S u b s i d i a r y t h a t i s o r w a s n o t r e q u i r e d t o b e c o m e a G u a r a n t o r u n d e r c l a u s e ( I I ) a b o v e, t h e C r e d i t P a r t i e s s h a l l p r o m p t l y n o t i fy t h e A d m i n i s t r a t i v e A g e n t t h a t s u c h S u b s i d i a r y n o l o n g e r q u a l i fi e s a s a n E x c l u d e d S ub s i d i a ry o r t h a t s u c h p r o h i b i t i o n i s n o l o n g e r i n e ffe c t w i t h r e s p e c t t o s u c h S u b s i d i a ry ( a s ap p l i c a b l e ), a n d t h e C r e d i t P a r t i e s s h a l l, w i t h i n t h i r t y ( 3 0 ) d a y s ( o r s u c h l a t e r t i m e a s t h e A d m i n i s t r a t i v e A g e n t m a y a g r e e ) a ft e r t h e d a t e t h a t s u c h S u b s i d i a ry c e a s e s t o s o q u a l i fy o r s u c h p r o h i b i t i o n i s n o l o n g e r i n e ffe c t w i t h r e s p e c t t o s u c h S ub s i d i a ry ( o r s u c h l a t e r d a t e, i n e a c h c a s e, w i t h t h e w r i t t e n c o n s e n t o f t h e A d m i n i s t r a t i v e A g e n t ), c a u s e s u c h S u b s i d i a r y t o b e c o m e a G u a r a n t o r i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f c l a u s e ( b ) o f t h i s S e c t i o n 7.1 2 ( u n l e s s, i n t h e c a s e o f a S u b s i d i a r y p r e v i o u s l y s ubj e c t t o a p r o h i b i t i o n a g a i n s t g u a r a n t e e i n g I n d e b t e d n e s s, s u c h S ub s i d i a ry o t h e r w i s e q u a l i fi e s a s a n E x c l u d e d S ub s i d i a ry t h e r e a ft e r ). [ R e s e r v e d ].( d ) U n e n c u m b e r e d P r o p e r t i e s S ubj e c t t o E l i g i b l e G r o u n d L e a s e s.S e c t i o n 7.1 3 T h e B o rr o w e r ( a n d e a c h ap p l i c a b l e C r e d i t P a r t y a n d/ o r U n e n c u m b e r e d P r o p e r t y O w n e r ) s h a l l, w i t h r e s p e c t t o e a c h U n e n c u m b e r e d P r o p e r t y s u bj e c t t o a n E l i g i b l e G r o u n d L e a s e: M a k e a l l p a y m e n t s a n d o t h e r w i s e p e r fo r m i n a l l m a t e r i a l r e s p e c t s a l l o b l i g a t i o n s ( a ) i n r e s p e c t o f e a c h s u c h E l i g i b l e G r o u n d L e a s e a n d k e e p e a c h s u c h E l i g i b l e G r o u n d L e a s e i n fu l l fo r c e a n d e ffe c t a n d n o t a l l o w a n y s u c h E l i g i b l e G r o u n d L e a s e t o l ap s e o r b e t e r m i n a t e d o r a n y r i g h t s t o r e n e w a n y s u c h E l i g i b l e G r o u n d L e a s e t o b e fo r fe i t e d o r c a n c e l l e d, n o t i fy t h e A d m i n i s t r a t i v e A g e n t o f a n y d e fa u l t b y a n y p a r t y w i t h r e s p e c t t o a n y s u c h E l i g i b l e G r o u n d L e a s e, e x c e p t, i n a n y c a s e, w h e r e t h e fa i l u r e t o d o s o w o u l d n o t b e r e a s o n a b l y l i k e l y t o h a v e a M a t e r i a l A d v e r s e E ffe c t. Wi t h o u t l i m i t i n g t h e fo r e g o i n g, w i t h r e s p e c t t o e a c h E l i g i b l e G r o u n d L e a s e ( b ) r e l a t e d t o a n y U n e n c u m b e r e d P r o p e r t y, e x c e p t, i n a n y c a s e, w h e r e t h e fa i l u r e t o d o s o w o u l d n o t b e r e a s o n a b l y l i k e l y t o h a v e a M a t e r i a l A d v e r s e E ffe c t: p a y w h e n du e t h e r e n t a n d o t h e r a m o u n t s du e a n d p a y a b l e t h e r e u n d e r ( i ) ( s u bj e c t t o a p p l i c a b l e c u r e o r g r a c e p e r i o d s ); 1 0 4

 

 

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timely perform and observe all of the material terms, covenants and(ii) conditions required to be performed and observed by it as tenant thereunder (subject to applicable cure or grace periods); do all things necessary to preserve and keep unimpaired such Eligible(iii) Ground Lease and its material rights thereunder; not waive, excuse or discharge any of the material obligations of the(iv) ground lessor or other obligor thereunder; diligently and continuously enforce the material obligations of the(v) ground lessor or other obligor thereunder; not do, permit or suffer any act, event or omission which would result in(vi) a default thereunder (or which, with the giving of notice or the passage of time, or both, would constitute a default thereunder), in each case which would permit the applicable ground lessor to terminate or exercise any other remedy with respect to such Eligible Ground Lease; cancel, terminate, surrender, modify or amend any of the provisions of(vii) any such Eligible Ground Lease or agree to any termination, amendment, modification or surrender thereof if the effect of such cancellation, termination, surrender, modification, amendment or agreement is to shorten the term of such Eligible Ground Lease; deliver to the Administrative Agent all default notices received by it or(viii) sent by it under the applicable Eligible Ground Lease; Reserved;(ix) not permit or consent to the subordination of such Eligible Ground Lease(x) to any mortgage or other leasehold interest of the premises related thereto, unless the Borrower has obtained customary non-disturbance rights in connection with such subordination. Release of Guarantors. If no Default or Event of Default has occurred and isSection 7.14 continuing or would occur after giving effect thereto, following the release of all liability of a Guarantor of any Indebtedness of such Guarantor under the Credit Documents or otherwise (other than contingent indemnification and reimbursement obligations for which no claim has been made), at the request and expense of the Borrower and without the need for any consent or approval of the Lenders, the Administrative Agent shall execute and deliver a release of the Guaranty made by such Guarantor in a form acceptable to the Borrower and the Administrative Agent. For the avoidance of doubt, the Administrative Agent may only release a Guaranty provided that each of the Credit Parties and the Administrative Agent otherwise continue to remain in compliance with the terms of this Agreement and the other Credit Documents, including without limitation, Section 7.12 hereof, and provided further that it shall not impact the limitations set forth in Section 11.4(b)(ix) with respect to the Parent (as Guarantor). Other Seller Guarantees.In the event that pursuant to the acquisition of a RealSection 7.15 Estate Asset, Parent or Borrower or any of the Consolidated Parties issue Equity Interests to any seller (or its affiliates) of such Real Estate Asset in full or partial consideration for the acquisition of such Real Estate Asset, at the request of the Parent or the Borrower or such Consolidated Party, such seller may 105

 

 

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issue to Administrative Agent for the benefit of the Lender a so-called “vertical slice guaranty” as security for the Loan in form and substance acceptable to Administrative Agent after satisfaction of such guarantor’s compliance with Section 7.8. REIT Status.The Parent and the Borrower will, and will cause each of theirSection 7.16 respective Subsidiaries to, operate their businesses at all times so as to satisfy all requirements necessary for the Parent to qualify as a REIT, and the Parent shall maintain its status, and such election to be treated, as a REIT. The Borrower shall at all times be a partnership or other disregarded entity for federal income tax purposes under the Internal Revenue Code. Electronic Delivery of Certain Information.Section 7.17 Documents, including financial reports to be delivered pursuant to Section 7.1(a) hereof, required to be delivered pursuant to this Agreement may be delivered by electronic communication and delivery, including, the Internet, including the website maintained by the Securities and Exchange Commission, e-mail or intranet websites to which the Agent and each Lender have access (including a commercial, third-party website or a website sponsored or hosted by the Agent or the Borrower) provided that the foregoing shall not apply to (i) notices to any Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic delivery pursuant to procedures approved by it for all or particular notices or communications. Documents or notices delivered electronically shall be deemed to have been delivered on the date and time on which the Administrative Agent or the Borrower posts such documents or the documents become available on a commercial website and the Borrower notifies the Administrative Agent of said posting by causing an e-mail notification to be sent to an e-mail address specified from time to time by the Administrative Agent and provides a link thereto; provided if such notice or other communication is not sent or posted during the normal business hours of the recipient, said posting date and time shall be deemed to have commenced as of 9:00 a.m. New York time on the opening of business on the next business day for the recipient. Notwithstanding anything contained herein, in every instance to the extent the Administrative Agent shall have so requested, the Borrower shall be required to provide paper copies of the certificates required by Section 7.1 to the Administrative Agent. Except as otherwise provided herein, the Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents delivered electronically, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery. Documents required to be delivered pursuant to Section 2 may be delivered(b) electronically to a website provided for such purpose by the Administrative Agent pursuant to the procedures provided to the Borrower by the Administrative Agent. This Credit Agreement and any document, amendment, approval, consent,(c) information, notice, certificate, request, statement, disclosure or authorization related to this Credit Agreement (each a “Communication”), including Communications required to be in writing, may be in the form of an Electronic Record and may be executed using Electronic Signatures. Each of the Credit Parties agrees that any Electronic Signature on or associated with any Communication shall be valid and binding on each such Credit Party to the same extent as a manual, original signature, and that any Communication entered into by Electronic Signature, will constitute the legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with the terms thereof to the same extent as if a manually executed original signature was delivered or a paper-based recordkeeping system was used, as the case may be. Any Communication may be executed in as many counterparts as necessary or 106

 

 

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convenient, including both paper and electronic counterparts, but all such counterparts are one and the same Communication. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by Administrative Agent and each of the Lenders of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format), or an electronically signed Communication converted into another format, for transmission, delivery and/or retention. Administrative Agent and each of the Lenders may, at its option, create one or more copies of any Communication in the form of an imaged Electronic Record (“Electronic Copy”), which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document. All Communications in the form of an Electronic Record, including an Electronic Copy, shall be considered an original for all purposes, and shall have the same legal effect, validity and enforceability as a paper record. Notwithstanding anything contained herein to the contrary, Administrative Agent is under no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by Administrative Agent pursuant to procedures approved by it; provided, further, without limiting the foregoing, (i) to the extent Administrative Agent has agreed to accept such Electronic Signature, Administrative Agent and each of the Lenders shall be entitled to rely on any such Electronic Signature purportedly given by or on behalf of any Credit Party without further verification and (ii) upon the request of Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by such manually executed counterpart. For purposes hereof, “Electronic Record” and “Electronic Signature” shall have the meanings assigned to them, respectively, by 15 USC §7006, as it may be amended from time to time. NEGATIVE COVENANTSSection 8 Each Credit Party covenants and agrees that until the Termination Date, each Credit Party shall perform, and shall cause each of its Subsidiaries to perform, all covenants in this Section 8. Indebtedness. No Credit Party shall, nor shall it permit any of its Subsidiaries to,Section 8.1 directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, other than: the Obligations, including the Guarantee of the Obligations by any Guarantors;(a) Indebtedness of any Credit Party or any Subsidiary of any Credit Party to any(b) other Credit Party or any other such Subsidiary so long as any such Indebtedness owing by any Credit Party to any Subsidiary which is not a Credit Party shall be subordinated to the Obligations on terms reasonably satisfactory to the Administrative Agent; Guarantees of Indebtedness otherwise permitted under this Section 8.1;(c) Indebtedness existing on the Effective Date and described in Schedule 8.1,(d) together with any Permitted Refinancing thereof; Indebtedness with respect to (x) Capital Leases and (y) purchase money(e) Indebtedness; provided, in the case of clause (x), that any such Indebtedness shall be secured only by the asset subject to such Capital Lease, and, in the case of clause (y), that any such Indebtedness shall be secured only by the asset acquired in connection with the incurrence of such Indebtedness; provided further that the sum of the aggregate principal amount of any Indebtedness under this clause (e) shall not exceed at any time $5,000,000; 107

 

 

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I n d e b t e d n e s s i n r e s p e c t o f a n y S w ap C o n t r a c t t h a t i s e n t e r e d i n t o i n t h e o r d i n a ry ( f) c o u r s e o f b u s i n e s s t o h e d g e o r m i t i g a t e r i s k s t o w h i c h a n y C r e d i t P a r t y o r a n y o f i t s S ub s i d i a r i e s i s e x p o s e d i n t h e c o n du c t o f i t s b u s i n e s s o r t h e m a n a g e m e n t o f i t s l i a b i l i t i e s ( i t b e i n g a c k n o w l e d g e d b y t h e C r e d i t P a r t i e s t h a t a S w ap C o n t r a c t e n t e r e d i n t o fo r s p e c u l a t i v e p u rp o s e s o r o f a s p e c u l a t i v e n a tu r e i s n o t a S w ap C o n t r a c t e n t e r e d i n t o i n t h e o r d i n a r y c o u r s e o f b u s i n e s s t o h e d g e o r m i t i g a t e r i s k s ); I n d e b t e d n e s s a r i s i n g i n c o n n e c t i o n w i t h t h e fi n a n c i n g o f i n s u r a n c e p r e m i u m s i n ( g ) t h e o r d i n a ry c o u r s e o f b u s i n e s s; c a s h m a n a g e m e n t o b l i g a t i o n s a n d o t h e r I n d e b t e d n e s s i n r e s p e c t o f e n d o r s e m e n t s ( h ) fo r c o l l e c t i o n o r d e p o s i t, n e t t i n g s e r v i c e s, o v e r d r a ft p r o t e c t i o n s a n d s i m i l a r a rr a n g e m e n t s, i n e a c h c a s e, i n c o n n e c t i o n w i t h d e p o s i t a c c o u n t s i n t h e o r d i n a r y c o u r s e o f b u s i n e s s; I n d e b t e d n e s s r e p r e s e n t i n g d e fe r r e d c o m p e n s a t i o n t o o ffi c e r s, d i r e c t o r s,( i ) e m p l o y e e s o f t h e P a r e n t a n d i t s S u b s i d i a r i e s; S e c u r e d R e c o u r s e I n d e b t e d n e s s o f a n y C r e d i t P a r t y o r a n y S u b s i d i a r y ( o t h e r t h a n (j ) a n y S u b s i d i a r y w h i c h i s a G u a r a n t o r h e r e u n d e r ); p r o v i d e d, t h e C r e d i t P a r t i e s s h a l l b e i n c o m p l i a n c e, o n a p r o fo r m a b a s i s a ft e r g i v i n g e ffe c t t o s u c h R e c o u r s e I n d e b t e d n e s s a n d r e l a t e d t r a n s a c t i o n s, w i t h t h e fi n a n c i a l c o v e n a n t s s e t fo r t h i n S e c t i o n 8.8, r e c o m p u t e d a s o f t h e l a s t d a y o f t h e m o s t r e c e n t l y e n d e d F i s c a l Q u a r t e r o f t h e B o r r o w e r fo r w h i c h fi n a n c i a l s t a t e m e n t s h a v e b e e n d e l i v e r e d p u r s u a n t t o S e c t i o n 7.1; U n s e c u r e d I n d e b t e d n e s s o f t h e C r e d i t P a r t i e s a n d t h e i r S u b s i d i a r i e s p r o v i d e d t h e ( k ) C r e d i t P a r t i e s s h a l l b e i n c o m p l i a n c e, o n a p r o fo r m a b a s i s a ft e r g i v i n g e ffe c t t o s u c h U n s e c u r e d I n d e b t e d n e s s a n d r e l a t e d t r a n s a c t i o n s, w i t h t h e fi n a n c i a l c o v e n a n t s s e t fo r t h i n S e c t i o n 8.8, r e c o m p u t e d a s o f t h e l a s t d a y o f t h e m o s t r e c e n t l y e n d e d F i s c a l Q u a r t e r o f t h e B o rr o w e r fo r w h i c h fi n a n c i a l s t a t e m e n t s h a v e b e e n d e l i v e r e d p u r s u a n t t o S e c t i o n 7.1; a n d N o n - R e c o u r s e I n d e b t e d n e s s o f a n y S u b s i d i a r i e s t h a t a r e n o t U n e n c u m b e r e d ( l ) P r o p e r t y O w n e r s h e r e u n d e r; p r o v i d e d, t h e C r e d i t P a r t i e s s h a l l b e i n c o m p l i a n c e, o n a p r o fo r m a b a s i s a ft e r g i v i n g e ffe c t t o s u c h N o n - R e c o u r s e I n d e b t e d n e s s a n d r e l a t e d t r a n s a c t i o n s, w i t h t h e fi n a n c i a l c o v e n a n t s s e t fo r t h i n S e c t i o n 8.8, r e c o m p u t e d a s o f t h e l a s t d a y o f t h e m o s t r e c e n t l y e n d e d F i s c a l Q u a r t e r o f t h e B o rr o w e r fo r w h i c h fi n a n c i a l s t a t e m e n t s h a v e b e e n d e l i v e r e d p u r s u a n t t o S e c t i o n 7.1. L i e n s.N o C r e d i t P a r t y s h a l l, n o r s h a l l i t p e r m i t a n y o f i t s S u b s i d i a r i e s t o, d i r e c t l y S e c t i o n 8.2 o r i n d i r e c t l y, c r e a t e, i n c u r, a s s u m e o r p e r m i t t o e x i s t a n y L i e n o n o r w i t h r e s p e c t t o a n y p r o p e r t y o r a s s e t o f a n y k i n d ( i n c l u d i n g a n y d o c u m e n t o r i n s t ru m e n t i n r e s p e c t o f g o o d s o r a c c o u n t s r e c e i v a b l e ) o f a n y C r e d i t P a r t y o r a n y o f i t s S u b s i d i a r i e s, w h e t h e r n o w o w n e d o r h e r e a ft e r a c q u i r e d, c r e a t e d o r l i c e n s e d o r a n y i n c o m e, p r o fi t s o r r o y a l t i e s t h e r e fr o m, o r fi l e o r p e r m i t t h e fi l i n g o f, o r p e r m i t t o r e m a i n i n e ffe c t, a n y fi n a n c i n g s t a t e m e n t o r o t h e r s i m i l a r n o t i c e o f a n y L i e n w i t h r e s p e c t t o a n y s u c h p r o p e r t y, a s s e t, i n c o m e, p r o fi t s o r r o y a l t i e s u n d e r t h e U C C o f a n y S t a t e o r u n d e r a n y s i m i l a r r e c o r d i n g o r n o t i c e s t a tu t e o r u n d e r a n y A p p l i c a b l e L a w s r e l a t e d t o i n t e l l e c tu a l p r o p e r t y, e x c e p t: A s m a y b e ap p l i c a b l e a t a n y t i m e, L i e n s i n fa v o r o f t h e A d m i n i s t r a t i v e A g e n t fo r ( a ) t h e b e n e fi t o f t h e h o l d e r s o f t h e O b l i g a t i o n s g r a n t e d p u r s u a n t t o a n y C r e d i t D o c u m e n t; 1 0 8

 

 

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L i e n s fo r Ta x e s n o t y e t du e o r fo r Ta x e s i f o b l i g a t i o n s w i t h r e s p e c t t o s u c h ( b ) Ta x e s a r e b e i n g c o n t e s t e d i n g o o d fa i t h b y ap p r o p r i a t e p r o c e e d i n g s p r o m p t l y i n s t i tu t e d a n d d i l i g e n t l y c o n du c t e d; s t a tu t o ry L i e n s o f l a n d l o r d s, b a n k s, c a rr i e r s, w a r e h o u s e m e n, m e c h a n i c s,( c ) r e p a i r m e n, w o r k m e n a n d m a t e r i a l m e n, a n d o t h e r L i e n s i m p o s e d b y l a w ( o t h e r t h a n a n y s u c h L i e n i m p o s e d p u r s u a n t t o S e c t i o n 4 3 0 ( k ) o f t h e I n t e rn a l R e v e n u e C o d e o r S e c t i o n 3 0 3 ( k ) o r 4 0 6 8 o f E R I S A t h a t w o u l d c o n s t i tu t e a n E v e n t o f D e fa u l t u n d e r S e c t i o n 9.1 (j ) ), i n e a c h c a s e i n c u rr e d i n t h e o r d i n a ry c o u r s e o f b u s i n e s s ( i ) fo r a m o u n t s n o t y e t o v e r du e, o r ( i i ) fo r a m o u n t s t h a t a r e o v e r du e a n d t h a t a r e b e i n g c o n t e s t e d i n g o o d fa i t h b y ap p r o p r i a t e p r o c e e d i n g s, s o l o n g a s s u c h r e s e r v e s o r o t h e r ap p r o p r i a t e p r o v i s i o n s, i f a n y, a s s h a l l b e r e q u i r e d b y G A A P s h a l l h a v e b e e n m a d e fo r a n y s u c h c o n t e s t e d a m o u n t s; L i e n s i n c u r r e d i n t h e o r d i n a r y c o u r s e o f b u s i n e s s i n c o n n e c t i o n w i t h w o r k e r s’( d ) c o m p e n s a t i o n, u n e m p l o y m e n t i n s u r a n c e a n d o t h e r t y p e s o f s o c i a l s e c u r i t y, o r t o s e c u r e t h e p e r fo r m a n c e o f t e n d e r s, s t a tu t o r y o b l i g a t i o n s, s u r e t y a n d ap p e a l b o n d s, b i d s, l e a s e s, g o v e r n m e n t c o n t r a c t s, t r a d e c o n t r a c t s, p e r fo r m a n c e a n d r e tu r n - o f-m o n e y b o n d s a n d o t h e r s i m i l a r o b l i g a t i o n s ( e x c l u s i v e o f o b l i g a t i o n s fo r t h e p a y m e n t o f b o r r o w e d m o n e y o r o t h e r I n d e b t e d n e s s ), s o l o n g a s n o fo r e c l o s u r e, s a l e o r s i m i l a r p r o c e e d i n g s h a v e b e e n c o m m e n c e d w i t h r e s p e c t t o a n y p o r t i o n o f t h e s u bj e c t R e a l E s t a t e A s s e t o n a c c o u n t t h e r e o f; e a s e m e n t s, r i g h t s - o f-w a y, r e s t r i c t i o n s, e n c r o a c h m e n t s, a n d o t h e r m i n o r ( e ) e n c u m b r a n c e s, d e fe c t s o r i r r e g u l a r i t i e s i n t i t l e, i n e a c h c a s e w h i c h d o n o t a n d w i l l n o t i n t e r fe r e i n a n y m a t e r i a l r e s p e c t w i t h t h e o r d i n a r y c o n du c t o f t h e b u s i n e s s o f a n y C r e d i t P a r t y o r a n y o f i t s S u b s i d i a r i e s, i n c l u d i n g, w i t h o u t l i m i t a t i o n, a l l e n c u m b r a n c e s s h o w n o n a n y p o l i c y o f t i t l e i n s u r a n c e i n fa v o r o f t h e A d m i n i s t r a t i v e A g e n t w i t h r e s p e c t t o a n y R e a l E s t a t e A s s e t; a n y i n t e r e s t o r t i t l e o f a l e s s o r o r s u b l e s s o r u n d e r a n y l e a s e o f r e a l e s t a t e n o t ( f) p r o h i b i t e d h e r e u n d e r ( i n c l u d i n g t h e i n t e r e s t s o f a n y g r o u n d l e s s o r u n d e r a n E l i g i b l e G r o u n d L e a s e r e s p e c t i n g a n y U n e n c u m b e r e d P r o p e r t y ); L i e n s s o l e l y o n a n y c a s h e a r n e s t m o n e y d e p o s i t s m a d e b y a n y C r e d i t P a r t y o r ( g ) a n y o f i t s S u b s i d i a r i e s i n c o n n e c t i o n w i t h a n y l e t t e r o f i n t e n t, o r p u r c h a s e a g r e e m e n t p e r m i t t e d h e r e u n d e r; p u rp o r t e d L i e n s e v i d e n c e d b y t h e fi l i n g o f p r e c a u t i o n a ry U C C fi n a n c i n g ( h ) s t a t e m e n t s r e l a t i n g s o l e l y t o o p e r a t i n g l e a s e s o f p e r s o n a l p r o p e r t y e n t e r e d i n t o i n t h e o r d i n a r y c o u r s e o f b u s i n e s s; L i e n s i n fa v o r o f c u s t o m s a n d r e v e n u e a u t h o r i t i e s a r i s i n g a s a m a t t e r o f l a w t o ( i ) s e c u r e p a y m e n t o f c u s t o m s du t i e s i n c o n n e c t i o n w i t h t h e i m p o r t a t i o n o f g o o d s; a n y z o n i n g o r s i m i l a r l a w o r r i g h t r e s e r v e d t o o r v e s t e d i n a n y g o v e r n m e n t a l (j ) o ffi c e o r a g e n c y t o c o n t r o l o r r e g u l a t e t h e u s e, o p e r a t i o n o r d e v e l o p m e n t o f a n y r e a l p r o p e r t y; l i c e n s e s o f p a t e n t s, t r a d e m a r k s a n d o t h e r i n t e l l e c tu a l p r o p e r t y r i g h t s g r a n t e d b y ( k ) a n y C r e d i t P a r t y o r a n y o f i t s S u b s i d i a r i e s i n t h e o r d i n a r y c o u r s e o f b u s i n e s s a n d n o t i n t e r fe r i n g i n a n y r e s p e c t w i t h t h e o r d i n a r y c o n du c t o f t h e b u s i n e s s o f s u c h C r e d i t P a r t y o r s u c h S u b s i d i a r y; L i e n s e x i s t i n g a s o f t h e E ffe c t i v e D a t e a n d d e s c r i b e d i n S c h e du l e 8.2;( l ) 1 0 9

 

 

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Liens securing purchase money Indebtedness (other than on any Unencumbered(m) Property) and Capital Leases to the extent permitted pursuant to Section 8.1(e); provided, any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness or the assets subject to such Capital Lease, respectively; Liens in favor of the Issuing Bank or the Swingline Lender on cash collateral(n) securing the obligations of a Defaulting Lender to fund risk participations hereunder; Liens on assets (other than on any Unencumbered Property) consisting of(o) judgment or judicial attachment liens relating to judgments which do not constitute an Event of Default hereunder; licenses (including licenses of Intellectual Property), sublicenses, leases or(p) subleases granted to third parties in the ordinary course of business; Liens in favor of collecting banks under Section 4-210 of the UCC;(q) Liens (including the right of set-off) in favor of a bank or other depository(r) institution arising as a matter of law encumbering deposits; Liens arising out of conditional sale, title retention, consignment or similar(s) arrangements for the sale of goods in the ordinary course of business; and Liens securing Secured Recourse Indebtedness and Non-Recourse Indebtedness(t) of any Credit Party or any Subsidiary thereof which is not an Unencumbered Property Owner (including any Foreign Subsidiary and any Excluded Subsidiary) to the extent such Secured Recourse Indebtedness or secured Non-Recourse Indebtedness is permitted pursuant to Section 8.1. No Further Negative Pledges. No Credit Party shall, nor shall it permit any of itsSection 8.3 Subsidiaries to, enter into any Contractual Obligation (other than this Agreement and the other Credit Documents) that limits the ability of the Borrower or any such Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person; provided, however, that this Section 8.3 shall not prohibit (i) any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under Section 8.1(e) solely to the extent any such negative pledge relates to the property financed by or subject to Permitted Liens securing such Indebtedness, (ii) any Contractual Obligation incurred or provided in favor of any holder of Indebtedness permitted under Section 8.1(l) solely to the extent such Contractual Obligation prohibits the pledge of the Capital Stock of the Borrower to secure any Indebtedness, (iii) any Permitted Lien or any document or instrument governing any Permitted Lien; provided that any such restriction contained therein relates only to the asset or assets subject to such Permitted Lien, (iv) customary restrictions and conditions contained in any agreement relating to the disposition of any property or assets permitted under Section 8.10 pending the consummation of such disposition, (v) customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business, and (vi) any Contractual Obligation (including, without limitation, any negative pledge) incurred or provided in favor of any holder of Indebtedness permitted under Section 8.1(k). Restricted Payments. Declare or make, directly or indirectly, any RestrictedSection 8.4 Payment, or incur any obligation (contingent or otherwise) to do so, except that: 110

 

 

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e a c h S ub s i d i a r y o f t h e B o rr o w e r m a y m a k e R e s t r i c t e d P a y m e n t s t o t h e ( a ) B o r r o w e r, a n d t h e B o r r o w e r a n d e a c h o t h e r S ub s i d i a r y o f t h e P a r e n t m a y m a k e R e s t r i c t e d P a y m e n t s t o t h e P a r e n t; t h e B o r r o w e r a n d e a c h S ub s i d i a r y m a y d e c l a r e a n d m a k e d i v i d e n d p a y m e n t s o r ( b ) o t h e r d i s t r i b u t i o n s p a y a b l e s o l e l y i n t h e C ap i t a l S t o c k o f s u c h P e r s o n; a n d t h e C r e d i t P a r t i e s a n d t h e o t h e r C o n s o l i d a t e d P a r t i e s ( i f a n y ) s h a l l b e p e r m i t t e d ( c ) t o m a k e o t h e r R e s t r i c t e d P a y m e n t s, s ubj e c t t o t h e l i m i t a t i o n s w i t h r e s p e c t t h e r e t o s e t fo r t h i n S e c t i o n 8.8 ( f). B u r d e n s o m e A g r e e m e n t s. N o C r e d i t P a r t y s h a l l, n o r s h a l l i t p e r m i t a n y o f i t s S e c t i o n 8.5 S ub s i d i a r i e s t o, e n t e r i n t o, o r p e r m i t t o e x i s t, a n y C o n t r a c tu a l O b l i g a t i o n t h a t e n c u m b e r s o r r e s t r i c t s t h e a b i l i t y o f a n y s u c h P e r s o n t o ( i ) p a y d i v i d e n d s o r m a k e a n y o t h e r d i s t r i b u t i o n s t o t h e B o r r o w e r o r o t h e r C r e d i t P a r t y ( i n c l u d i n g b y w a y o f a D i v i s i o n ) o n i t s C ap i t a l S t o c k o r w i t h r e s p e c t t o a n y o t h e r i n t e r e s t o r p a r t i c i p a t i o n i n, o r m e a s u r e d b y, i t s p r o fi t s, ( i i ) p a y a n y I n d e b t e d n e s s o r o t h e r o b l i g a t i o n o w e d t o t h e B o r r o w e r o r a n y o t h e r C r e d i t P a r t y, ( i i i ) m a k e l o a n s o r a d v a n c e s t o t h e B o r r o w e r o r a n y o t h e r C r e d i t P a r t y, ( i v ) s e l l, l e a s e o r t r a n s fe r a n y o f i t s p r o p e r t y t o t h e B o r r o w e r o r a n y o t h e r C r e d i t P a r t y, ( v ) p l e d g e i t s p r o p e r t y p u r s u a n t t o t h e C r e d i t D o c u m e n t s o r a n y r e n e w a l s, r e fi n a n c i n g s, e x c h a n g e s, r e fu n d i n g s o r e x t e n s i o n t h e r e o f o r ( v i ) o t h e r t h a n c u s t o m a r y S u b s i d i a r y I n d e b t e d n e s s l i m i t a t i o n s o r c o v e n a n t s, a c t a s a B o r r o w e r p u r s u a n t t o t h e C r e d i t D o c u m e n t s o r a n y r e n e w a l s, r e fi n a n c i n g s, e x c h a n g e s, r e fu n d i n g s o r e x t e n s i o n t h e r e o f, e x c e p t ( i n r e s p e c t o f a n y o f t h e m a t t e r s r e fe r r e d t o i n c l a u s e s ( i ) - ( v ) a b o v e ) fo r ( 1 ) t h i s A g r e e m e n t a n d t h e o t h e r C r e d i t D o c u m e n t s, ( 2 ) a n y d o c u m e n t o r i n s t ru m e n t g o v e rn i n g I n d e b t e d n e s s i n c u rr e d p u r s u a n t t o S e c t i o n 8.1 ( e ) o r S e c t i o n 8.1 (j ); p r o v i d e d t h a t a n y s u c h r e s t r i c t i o n c o n t a i n e d t h e r e i n r e l a t e s o n l y t o t h e a s s e t o r a s s e t s c o n s t ru c t e d o r a c q u i r e d i n c o n n e c t i o n t h e r e w i t h o r s e c u r e d t h e r e b y, ( 3 ) a n y P e r m i t t e d L i e n o r a n y d o c u m e n t o r i n s t ru m e n t g o v e r n i n g a n y P e r m i t t e d L i e n, p r o v i d e d t h a t a n y s u c h r e s t r i c t i o n c o n t a i n e d t h e r e i n r e l a t e s o n l y t o t h e a s s e t o r a s s e t s s u bj e c t t o s u c h P e r m i t t e d L i e n, ( 4 ) c u s t o m a ry r e s t r i c t i o n s a n d c o n d i t i o n s c o n t a i n e d i n a n y a g r e e m e n t r e l a t i n g t o t h e s a l e o f a n y p r o p e r t y p e r m i t t e d u n d e r S e c t i o n 8.1 0 p e n d i n g t h e c o n s u m m a t i o n o f s u c h s a l e, o r ( 5 ) a n y d o c u m e n t o r i n s t ru m e n t g o v e r n i n g I n d e b t e d n e s s i n c u r r e d p u r s u a n t t o S e c t i o n 8.1 ( k ). I n v e s t m e n t s. N o C r e d i t P a r t y s h a l l, n o r s h a l l i t p e r m i t a n y o f i t s S ub s i d i a r i e s t o,S e c t i o n 8.6 d i r e c t l y o r i n d i r e c t l y, m a k e o r o w n a n y I n v e s t m e n t i n a n y P e r s o n, i n c l u d i n g a n y J o i n t Ve n tu r e E n t i t y a n d a n y F o r e i g n S u b s i d i a r y, e x c e p t: I n v e s t m e n t s i n c a s h a n d C a s h E q u i v a l e n t s a n d d e p o s i t a c c o u n t s o r s e c u r i t i e s ( a ) a c c o u n t s i n c o n n e c t i o n t h e r e w i t h; I n v e s t m e n t s o w n e d a s o f t h e E ffe c t i v e D a t e i n a n y S u b s i d i a r y o r U n c o n s o l i d a t e d ( b ) A ffi l i a t e, a n d I n v e s t m e n t s i n a n y S u b s i d i a r y fo r m e d o r a c q u i r e d a ft e r t h e E ffe c t i v e D a t e; i n t e r c o m p a n y l o a n s a n d G u a r a n t e e s t o t h e e x t e n t p e r m i t t e d u n d e r S e c t i o n 8.1;( c ) I n v e s t m e n t s e x i s t i n g o n t h e E ffe c t i v e D a t e a n d d e s c r i b e d o n S c h e du l e 8.6;( d ) I n v e s t m e n t s i n R e a l E s t a t e A s s e t s t h a t c o n s t i tu t e H e a l t h c a r e F a c i l i t i e s ( o t h e r t h a n ( e ) D e v e l o p m e n t P r o p e r t y, I n v e s t m e n t s i n w h i c h s h a l l b e s u bj e c t t o t h e e x c l u s i o n s s e t fo r t h i n c l a u s e (j ) b e l o w ); I n v e s t m e n t s i n S u b s i d i a r i e s fo r m e d o r a c q u i r e d a ft e r t h e E ffe c t i v e D a t e t h a t d o ( f) n o t o w n a n y U n e n c u m b e r e d P r o p e r t i e s a n d t h a t a r e n o t r e q u i r e d t o b e c o m e G u a r a n t o r s i n 1 1 1

 

 

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a c c o r d a n c e w i t h S e c t i o n 7.1 2 ( b ), s o l o n g a s t h e C r e d i t P a r t i e s s h a l l b e i n c o m p l i a n c e, o n a p r o fo r m a b a s i s a ft e r g i v i n g e ffe c t t o s u c h I n v e s t m e n t, w i t h t h e fi n a n c i a l c o v e n a n t s s e t fo r t h i n S e c t i o n 8.8, r e c o m p u t e d a s o f t h e l a s t d a y o f t h e m o s t r e c e n t l y e n d e d F i s c a l Q u a r t e r o f t h e B o r r o w e r fo r w h i c h fi n a n c i a l s t a t e m e n t s h a v e b e e n d e l i v e r e d p u r s u a n t t o S e c t i o n 7.1; I n v e s t m e n t s c o n s t i tu t i n g S w ap C o n t r a c t s p e r m i t t e d b y S e c t i o n 8.1 ( f);( g ) I n v e s t m e n t s c o n s t i tu t i n g a c c o u n t s o r l e a s e o r r e n t r e c e i v a b l e s, p r e p a y m e n t s a n d ( h ) d e p o s i t s, i n e a c h c a s e m a d e i n t h e o r d i n a ry c o u r s e o f b u s i n e s s; I n v e s t m e n t s i n t h e n a tu r e o f c ap i t a l e x p e n d i tu r e s i n r e s p e c t o f a n y fi x e d o r ( i ) c ap i t a l a s s e t, t o t h e e x t e n t s u c h c ap i t a l e x p e n d i tu r e s c o n s t i tu t e n o r m a l r e p l a c e m e n t s a n d m a i n t e n a n c e w h i c h a r e p r o p e r l y c h a r g e d t o c u r r e n t o p e r a t i o n s o r o t h e r r e a s o n a b l e a n d c u s t o m a r y c ap i t a l e x p e n d i tu r e s m a d e i n t h e o r d i n a r y c o u r s e o f t h e b u s i n e s s o f t h e P a r e n t a n d i t s S u b s i d i a r i e s; a n d s u bj e c t t o t h e fo l l o w i n g l i m i t a t i o n s, I n v e s t m e n t s i n t h e fo l l o w i n g a s s e t c l a s s e s:(j ) ( i ) C ap i t a l S t o c k, t h e i s s u e r w i t h r e s p e c t t o w h i c h i s a n U n c o n s o l i d a t e d A ffi l i a t e m a d e t o, o r s i m i l a r I n v e s t m e n t s i n, a n y P e r s o n ( o t h e r t h a n a n A ffi l i a t e o f a n y C r e d i t P a r t y ) t h a t o w n s, d i r e c t l y o r i n d i r e c t l y, o n e o r m o r e R e a l E s t a t e A s s e t s t h a t c o n s t i tu t e H e a l t h c a r e F a c i l i t i e s ( “ C l a s s I ” ), ( i i ) D e v e l o p m e n t P r o p e r t i e s ( “ C l a s s I I ” a n d t o g e t h e r w i t h C l a s s I m a y b e r e fe r r e d t o h e r e i n i n d i v i du a l l y a s a “ C l a s s ” a n d c o l l e c t i v e l y a s “ C l a s s e s ” ): p r o v i d e d, I n v e s t m e n t s i n e a c h o f t h e fo r e g o i n g a s s e t C l a s s e s s h a l l b e p e r m i t t e d h e r e u n d e r o n l y t o t h e e x t e n t t h a t t h e a g g r e g a t e a m o u n t o f a l l I n v e s t m e n t s i n s u c h C l a s s ( b a s e d o n t h e G A A P b o o k v a l u e o f e a c h s u c h I n v e s t m e n t a t s u c h t i m e o f d e t e r m i n a t i o n ) d o e s n o t e x c e e d t h e c o rr e s p o n d i n g p e r c e n t a g e o f To t a l A s s e t Va l u e fo r s u c h C l a s s s e t fo r t h b e l o w: C l a s s I n v e s t m e n t Ty p e M a x i m u m P e r c e n t a g e I U n c o n s o l i d a t e d A ffi l i a t e s 2 5.0 % I I D e v e l o p m e n t P r o p e r t y 3 5.0 % N o t w i t h s t a n d i n g a n y t h i n g c o n t a i n e d h e r e i n t o t h e c o n t r a ry, a n y fa i l u r e o f t h e B o r r o w e r t o m e e t t h e fo r e g o i n g I n v e s t m e n t l i m i t a t i o n s s h a l l n o t c o n s t i tu t e a n E v e n t o f D e fa u l t h e r e u n d e r, b u t s h a l l r e s u l t i n t h e e x c e s s v a l u e o f s u c h I n v e s t m e n t b e i n g e x c l u d e d w h e n c a l c u l a t i n g To t a l A s s e t Va l u e h e r e u n d e r. N o t w i t h s t a n d i n g t h e fo r e g o i n g, ( x ) i n n o e v e n t s h a l l a n y C r e d i t P a r t y m a k e a n y I n v e s t m e n t u n d e r t h i s S e c t i o n 8.6 w h i c h r e s u l t s i n o r fa c i l i t a t e s i n a n y m a n n e r a n y R e s t r i c t e d P a y m e n t n o t o t h e r w i s e p e r m i t t e d u n d e r t h e t e r m s o f S e c t i o n 8.4; a n d ( y ) i n n o e v e n t s h a l l t h e P a r e n t b e p e r m i t t e d t o m a k e a n y e q u i t y I n v e s t m e n t i n a n y P e r s o n o t h e r t h a n t h e B o r r o w e r. U s e o f P r o c e e d s. N o C r e d i t P a r t y s h a l l u s e t h e p r o c e e d s o f a n y C r e d i t E x t e n s i o n S e c t i o n 8.7 o r t h e L o a n s e x c e p t p u r s u a n t t o S e c t i o n 7.9. F i n a n c i a l C o v e n a n t s. N o C r e d i t P a r t y s h a l l a t a n y t i m e:S e c t i o n 8.8 1 1 2

 

 

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C o n s o l i d a t e d L e v e r a g e R a t i o. P e r m i t t h e C o n s o l i d a t e d L e v e r a g e R a t i o, t e s t e d a s ( a ) o f t h e e n d o f a n y F i s c a l Q u a r t e r o f t h e B o r r o w e r, t o b e g r e a t e r t h a n 0.6 0 t o 1.0 0; p r o v i d e d t h a t, i f t h e B o r r o w e r s h a l l h a v e c o n s u m m a t e d a M a t e r i a l A c q u i s i t i o n, a t t h e B o r r o w e r’s e l e c t i o n, t h e n n o C r e d i t P a r t y s h a l l p e r m i t t h e C o n s o l i d a t e d L e v e r a g e R a t i o, t e s t e d a s o f t h e e n d o f e a c h o f t h e fo u r c o n s e c u t i v e F i s c a l Q u a r t e r s fo l l o w i n g s u c h M a t e r i a l A c q u i s i t i o n, t o b e g r e a t e r t h a n 0.6 5 t o 1.0 0. C o n s o l i d a t e d S e c u r e d I n d e b t e d n e s s L e v e r a g e R a t i o. P e r m i t t h e C o n s o l i d a t e d ( b ) S e c u r e d I n d e b t e d n e s s L e v e r a g e R a t i o, t e s t e d a s o f t h e e n d o f a n y F i s c a l Q u a r t e r o f t h e B o rr o w e r, t o b e g r e a t e r t h a n fo r t y p e r c e n t ( 4 0.0 % ). C o n s o l i d a t e d U n s e c u r e d L e v e r a g e R a t i o. P e r m i t t h e C o n s o l i d a t e d U n s e c u r e d ( c ) L e v e r a g e R a t i o, t e s t e d a s o f t h e e n d o f a n y F i s c a l Q u a r t e r o f t h e B o r r o w e r, t o b e g r e a t e r t h a n 0.6 0 t o 1.0 0; p r o v i d e d t h a t, i f t h e B o r r o w e r s h a l l h a v e c o n s u m m a t e d a M a t e r i a l A c q u i s i t i o n, a t t h e B o r r o w e r’s e l e c t i o n, t h e n n o C r e d i t P a r t y s h a l l p e r m i t t h e C o n s o l i d a t e d U n s e c u r e d I n d e b t e d n e s s L e v e r a g e R a t i o, t e s t e d a s o f t h e e n d o f e a c h o f t h e fo u r c o n s e c u t i v e F i s c a l Q u a r t e r s fo l l o w i n g s u c h M a t e r i a l A c q u i s i t i o n, t o b e g r e a t e r t h a n 0.6 5 t o 1.0 0. C o n s o l i d a t e d F i x e d C h a r g e C o v e r a g e R a t i o. P e r m i t t h e C o n s o l i d a t e d F i x e d ( d ) C h a r g e C o v e r a g e R a t i o, t e s t e d a s o f t h e e n d o f a n y F i s c a l Q u a r t e r o f t h e B o r r o w e r, t o b e l e s s t h a n 1.5 0 t o 1.0 0. Ta n g i b l e N e t Wo r t h. P e r m i t Ta n g i b l e N e t Wo r t h, t e s t e d a s o f t h e e n d o f a n y ( e ) F i s c a l Q u a r t e r o f t h e B o r r o w e r, t o b e l e s s t h a n t h e s u m o f ( x ) $ 2,6 5 6,5 0 0,0 0 0, p l u s ( y ) a n a m o u n t e q u a l t o, o n a c u m u l a t i v e b a s i s, t h e p r o du c t o f ( i ) t h e s u m o f a l l N e t C a s h P r o c e e d s fr o m a n y E q u i t y I s s u a n c e a ft e r t h e E ffe c t i v e D a t e, m u l t i p l i e d b y ( i i ) s e v e n t y - fi v e p e r c e n t ( 7 5.0 % ). D i s t r i b u t i o n L i m i t a t i o n. E a c h C r e d i t P a r t y a n d e a c h o t h e r S u b s i d i a ry s h a l l b e ( f) p e r m i t t e d t o m a k e R e s t r i c t e d P a y m e n t s t o t h e B o r r o w e r a n d t h e B o rr o w e r s h a l l b e p e r m i t t e d t o m a k e R e s t r i c t e d P a y m e n t s t o P a r e n t ( a n d t h e B o rr o w e r m a y m a k e a n y c o r r e s p o n d i n g R e s t r i c t e d P a y m e n t s t o t h e h o l d e r s ( o t h e r t h a n t h e P a r e n t ) o f c o m m o n a n d p r e fe r r e d l i m i t e d p a r t n e r s h i p u n i t s i n t h e B o r r o w e r, b a s e d o n s u c h h o l d e r s’ i n d i v i du a l p e r c e n t a g e o w n e r s h i p o f C ap i t a l S t o c k i n t h e B o rr o w e r o r o t h e rw i s e i n a c c o r d a n c e w i t h t h e B o rr o w e r’s O r g a n i z a t i o n a l D o c u m e n t s ); p r o v i d e d t h a t i f a n E v e n t o f D e fa u l t s h a l l b e i n e x i s t e n c e, s u c h R e s t r i c t e d P a y m e n t s s h a l l b e l i m i t e d t o t h e a m o u n t n e c e s s a r y t o p e r m i t t h e P a r e n t t o m a k e R e s t r i c t e d P a y m e n t s t o t h e h o l d e r s o f t h e C ap i t a l S t o c k i n t h e P a r e n t t o t h e e x t e n t n e c e s s a ry t o m a i n t a i n P a r e n t’s s t a tu s a s a R E I T o r t o e n a b l e t h e P a r e n t t o a v o i d p a y m e n t o f a n y Ta x fo r a n y c a l e n d a r y e a r t h a t c o u l d b e a v o i d e d b y r e a s o n o f a R e s t r i c t e d P a y m e n t b y P a r e n t t o t h e h o l d e r s o f i t s C ap i t a l S t o c k, w i t h s u c h R e s t r i c t e d P a y m e n t s b y t h e P a r e n t t o b e m a d e a s a n d w h e n r e a s o n a b l y d e t e r m i n e d b y P a r e n t, w h e t h e r du r i n g o r a ft e r t h e e n d o f t h e r e l e v a n t c a l e n d a r y e a r, a n d i n a l l c a s e s a s s e t fo r t h i n a c e r t i fi c a t i o n t o t h e A d m i n i s t r a t i v e A g e n t fr o m t h e c h i e f fi n a n c i a l o ffi c e r, p r i n c i p a l a c c o u n t i n g o ffi c e r, t r e a s u r e r o r c o n t r o l l e r o f t h e P a r e n t; p r o v i d e d, fu r t h e r, t h a t i n n o e v e n t s h a l l t h e C o n s o l i d a t e d P a r t i e s m a k e a n y R e s t r i c t e d P a y m e n t s t o t h e h o l d e r s o f t h e i r C ap i t a l S t o c k ( o t h e r t h a n a n y R e s t r i c t e d P a y m e n t s t o s u c h h o l d e r s o f C ap i t a l S t o c k w h i c h a r e a l s o C r e d i t P a r t i e s ) i f o r t o t h e e x t e n t t h a t a n E v e n t o f D e fa u l t t h e n e x i s t s u n d e r S e c t i o n 9.1 ( a ), ( f) o r ( g ) o r i f t h e O b l i g a t i o n s s h a l l h a v e b e e n a c c e l e r a t e d u n d e r S e c t i o n 9.2 a s a r e s u l t o f t h e o c c u r r e n c e o f a n E v e n t o f D e fa u l t. U n e n c u m b e r e d I n t e r e s t C o v e r a g e R a t i o. P e r m i t t h e U n e n c u m b e r e d I n t e r e s t ( g ) C o v e r a g e R a t i o, t e s t e d a s o f t h e e n d o f a n y F i s c a l Q u a r t e r o f t h e B o rr o w e r, t o b e l e s s t h a n 1.7 5 t o 1.0 0. 1 1 3

 

 

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Capital Expenditures. The Credit Parties shall not make or become legallySection 8.9 obligated to make any capital expenditures, except to the extent permitted under Section 8.6(i). Fundamental Changes; Disposition of Assets; Acquisitions. No Credit PartySection 8.10 shall, nor shall it permit any of its Subsidiaries to, enter into any Acquisition or transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or make any Asset Sale, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory and materials and the acquisition of equipment and capital expenditures in the ordinary course of business, subject to Section 8.9) the business, property or fixed assets of, or Capital Stock or other evidence of beneficial ownership of, any Person or any division or line of business or other business unit of any Person, except: any Subsidiary of the Borrower may be merged with or into the Borrower or any(a) other Subsidiary, or be liquidated, wound up or dissolved, or all or any part of its business, property or assets may be conveyed, sold, leased, transferred or otherwise disposed of, in one transaction or a series of transactions, to the Borrower or any other Credit Party; provided, in the case of such a merger, (i) if the Borrower is party to the merger, the Borrower shall be the continuing or surviving Person and (ii) if any Guarantor is the party to such merger, then a Guarantor shall be the continuing or surviving Person; Asset Sales, so long as no Default or Event of Default then exists or would result(b) from any such Asset Sale and the consideration received for the assets subject to such Asset Sale is in an amount at least equal to the fair market value thereof (determined in good faith by the board of directors of the applicable Credit Party (or similar governing body)); provided, each of the Credit Parties acknowledges and agrees that no proceeds of any such Asset Sale permitted hereunder shall be used to make Restricted Payments other than in compliance with Sections 8.4 and 8.8(f); and Investments made in accordance with Section 8.6 and the subsequent sale or(c) other disposition of such Investments (so long the consideration received for such Investments subject to such sale or other disposition is in an amount at least equal to the fair market value thereof (determined in good faith by the board of directors of the applicable Credit Party (or similar governing body)); provided, each of the Credit Parties acknowledges and agrees that no proceeds of any such sale or other disposition permitted hereunder shall be used to make Restricted Payments other than in compliance with Sections 8.4 and 8.8(f). Disposal of Subsidiary Interests. Except as otherwise permitted hereunder andSection 8.11 except for Liens securing the Obligations, no Credit Party shall, nor shall it permit any of its Subsidiaries to (including by way of Division), (a) directly or indirectly sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to qualify directors if required by Applicable Laws; or (b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by Applicable Laws. Transactions with Affiliates and Insiders. No Credit Party shall, nor shall itSection 8.12 permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any officer, director or Affiliate of the Borrower or any its Subsidiaries on terms that are less favorable to the Borrower or such Subsidiary, as the case may be, than those that might be obtained at the time from a Person who is not an officer, director or Affiliate of the Borrower or any of its Subsidiaries; provided, the 114

 

 

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foregoing restriction shall not apply to (a) any transaction between or among the Credit Parties; (b) normal and reasonable compensation and reimbursement of expenses of directors in the ordinary course of business; (c) compensation and reimbursement of out-of-pocket expenses, employment and severance arrangements for officers and other employees entered into in the ordinary course of business; (d) equity issuances by the Parent not constituting a Change of Control; (e) payments by the Parent permitted by Section 8.4; and (e) the payment of customary indemnities to directors, officers and employees in the ordinary course of business. Prepayment of Other Funded Debt. No Credit Party shall, nor shall it permit anySection 8.13 of its Subsidiaries to: amend or modify, or permit or acquiesce to the amendment or modification(a) (including waivers) of, any material provisions of any Subordinated Debt, including any notes or instruments evidencing any Subordinated Debt and any indenture or other governing instrument relating thereto in contravention of the terms of the subordination agreement in favor of the Lenders; or make any payment in contravention of the terms of any Subordinated Debt.(b) Without limiting the foregoing, nothing in this Section 8.13 shall be interpreted or deemed to permit any Credit Party or Subsidiary to incur any Funded Debt or Subordinated Debt to the extent such Funded Debt or Subordinated Debt is not otherwise expressly permitted under Section 8.1. Conduct of Business. From and after the Effective Date, the Parent and theSection 8.14 Borrower shall not, nor shall they permit any of their Subsidiaries to, engage in any business other than the businesses engaged in by the Parent, the Borrower or such Subsidiary, respectively, on the Effective Date and businesses that are substantially similar, related or incidental thereto, including, but not limited to, owning, developing, and managing real and personal property and similar interests in leasehold properties which are net leased to healthcare operators for use as Healthcare Facilities. Fiscal Year. No Credit Party shall, nor shall it permit any of its Subsidiaries toSection 8.15 change its Fiscal Year-end from December 31. Amendments to Organizational Agreements/Material Agreements. No CreditSection 8.16 Party shall, nor shall it permit any of its Subsidiaries to, amend or permit any amendments to its Organizational Documents if such amendment would reasonably be expected to be materially adverse to the Lenders or the Administrative Agent. No Credit Party shall, nor shall it permit any of its Subsidiaries to, amend or permit any amendment to, or terminate or waive any provision of, any Material Contract unless such amendment, termination, or waiver would not have a material adverse effect on the Administrative Agent or the Lenders. EVENTS OF DEFAULT; REMEDIES; APPLICATION OF FUNDS.Section 9 Events of Default. If any one or more of the following conditions or events shallSection 9.1 occur: Failure to Make Payments When Due. Failure by any Credit Party to pay (i) the(a) principal of any Loan when due, whether at stated maturity, by acceleration or otherwise; (ii) within one (1) Business Day of when due any amount payable to the Issuing Bank in 115

 

 

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r e i m b u r s e m e n t o f a n y d r a w i n g u n d e r a L e t t e r o f C r e d i t; o r ( i i i ) w i t h i n t h r e e ( 3 ) B u s i n e s s D a y s o f w h e n du e a n y i n t e r e s t o n a n y L o a n o r a n y fe e o r a n y o t h e r a m o u n t du e h e r e u n d e r; o r D e fa u l t i n O t h e r A g r e e m e n t s. ( i ) F a i l u r e o f a n y C r e d i t P a r t y o r a n y o f i t s ( b ) S ub s i d i a r i e s t o p a y w h e n du e a n y p r i n c i p a l o f o r i n t e r e s t o n o r a n y o t h e r a m o u n t p a y a b l e i n r e s p e c t o f o n e o r m o r e i t e m s o f ( x ) R e c o u r s e I n d e b t e d n e s s ( o t h e r t h a n I n d e b t e d n e s s r e fe r r e d t o i n S e c t i o n 8.1 ( a ) ) i n a n a g g r e g a t e p r i n c i p a l a m o u n t o f $ 5 0,0 0 0,0 0 0 o r m o r e, i n e a c h c a s e b e y o n d t h e g r a c e o r c u r e p e r i o d, i f a n y, p r o v i d e d t h e r e fo r o r ( y ) N o n - R e c o u r s e I n d e b t e d n e s s i n a n a g g r e g a t e p r i n c i p a l a m o u n t o f $ 1 0 0,0 0 0,0 0 0 o r m o r e, i n e a c h c a s e b e y o n d t h e g r a c e o r c u r e p e r i o d, i f a n y, p r o v i d e d t h e r e fo r; o r ( i i ) b r e a c h o r d e fa u l t b y a n y C r e d i t P a r t y w i t h r e s p e c t t o a n y o t h e r t e r m o f ( 1 ) o n e o r m o r e i t e m s o f I n d e b t e d n e s s i n t h e a g g r e g a t e p r i n c i p a l a m o u n t s r e fe r r e d t o i n c l a u s e s ( i ) ( x ) o r ( i ) ( y ) a b o v e, o r ( 2 ) a n y l o a n a g r e e m e n t, m o r t g a g e, i n d e n tu r e o r o t h e r a g r e e m e n t r e l a t i n g t o s u c h i t e m ( s ) o f I n d e b t e d n e s s, i n e a c h c a s e b e y o n d t h e g r a c e o r c u r e p e r i o d, i f a n y, p r o v i d e d t h e r e fo r, i f t h e e ffe c t o f s u c h b r e a c h o r d e fa u l t i s t o c a u s e, o r t o p e r m i t t h e h o l d e r o r h o l d e r s o f t h a t I n d e b t e d n e s s ( o r a t ru s t e e o n b e h a l f o f s u c h h o l d e r o r h o l d e r s ), t o c a u s e, t h a t I n d e b t e d n e s s t o b e c o m e o r b e d e c l a r e d du e a n d p a y a b l e ( o r s u bj e c t t o a c o m p u l s o r y r e p u r c h a s e o r r e d e e m a b l e ) p r i o r t o i t s s t a t e d m a tu r i t y o r t h e s t a t e d m a tu r i t y o f a n y u n d e r l y i n g o b l i g a t i o n, a s t h e c a s e m a y b e; o r B r e a c h o f C e r t a i n C o v e n a n t s. F a i l u r e o f B o r r o w e r o r P a r e n t o r a n y S u b s i d i a r y,( c ) a s ap p l i c a b l e, t o p e r fo r m o r c o m p l y w i t h a n y t e r m o r c o n d i t i o n c o n t a i n e d i n S e c t i o n 7.1, S e c t i o n 7.2 ( a ), S e c t i o n 7.5, S e c t i o n 7.9, S e c t i o n 7.1 2, S e c t i o n 7.1 3, S e c t i o n 7.1 5 o r S e c t i o n 8; o r B r e a c h o f R e p r e s e n t a t i o n s, e t c. A n y r e p r e s e n t a t i o n, w a r r a n t y, c e r t i fi c a t i o n o r ( d ) o t h e r s t a t e m e n t m a d e o r d e e m e d m a d e b y a n y C r e d i t P a r t y i n a n y C r e d i t D o c u m e n t o r i n a n y s t a t e m e n t o r c e r t i fi c a t e a t a n y t i m e g i v e n b y a n y C r e d i t P a r t y o r a n y o f i t s S ub s i d i a r i e s i n w r i t i n g p u r s u a n t h e r e t o o r t h e r e t o o r i n c o n n e c t i o n h e r e w i t h o r t h e r e w i t h s h a l l b e fa l s e i n a n y m a t e r i a l r e s p e c t a s o f t h e d a t e m a d e o r d e e m e d m a d e; o r O t h e r D e fa u l t s U n d e r C r e d i t D o c u m e n t s. A n y C r e d i t P a r t y s h a l l d e fa u l t i n t h e ( e ) p e r fo r m a n c e o f o r c o m p l i a n c e w i t h a n y t e r m c o n t a i n e d h e r e i n o r a n y o f t h e o t h e r C r e d i t D o c u m e n t s, o t h e r t h a n a n y s u c h t e r m r e fe rr e d t o i n a n y o t h e r S e c t i o n o f t h i s S e c t i o n 9.1, a n d s u c h d e fa u l t s h a l l n o t h a v e b e e n r e m e d i e d o r w a i v e d w i t h i n t h i r t y ( 3 0 ) d a y s a ft e r t h e e a r l i e r o f ( i ) a n A u t h o r i z e d O ffi c e r o f s u c h B o rr o w e r b e c o m i n g a w a r e o f s u c h d e fa u l t, o r ( i i ) r e c e i p t b y t h e B o rr o w e r o f n o t i c e fr o m t h e A d m i n i s t r a t i v e A g e n t o r a n y L e n d e r o f s u c h d e fa u l t; p r o v i d e d, h o w e v e r, i f s u c h d e fa u l t i s n o t c ap a b l e o f b e i n g c u r e d w i t h i n s u c h t h i r t y ( 3 0 ) d a y p e r i o d, s u c h p e r i o d s h a l l b e e x t e n d e d fo r a r e a s o n a b l e p e r i o d o f t i m e ( n o t t o e x c e e d t h i r t y ( 3 0 ) a d d i t i o n a l d a y s ), s o l o n g a s s u c h C r e d i t P a r t y h a s c o m m e n c e d a n d i s d i l i g e n t l y p u r s u i n g s u c h c u r e w i t h i n s u c h i n i t i a l t h i r t y ( 3 0 ) d a y p e r i o d; o r I n v o l u n t a r y B a n krup t c y; A p p o i n t m e n t o f R e c e i v e r, e t c. ( i ) A c o u r t o f c o m p e t e n t ( f) j u r i s d i c t i o n s h a l l e n t e r a d e c r e e o r o r d e r fo r r e l i e f i n r e s p e c t o f a n y C r e d i t P a r t y o r a n y o f i t s M a t e r i a l S u b s i d i a r i e s i n a n i n v o l u n t a r y c a s e u n d e r t h e B a n k rup t c y C o d e o r D e b t o r R e l i e f L a w s n o w o r h e r e a ft e r i n e ffe c t, w h i c h d e c r e e o r o r d e r i s n o t s t a y e d; o r a n y o t h e r s i m i l a r r e l i e f s h a l l b e g r a n t e d u n d e r a n y ap p l i c a b l e fe d e r a l o r s t a t e l a w; o r ( i i ) a n i n v o l u n t a r y c a s e s h a l l b e c o m m e n c e d a g a i n s t a n y C r e d i t P a r t y o r a n y o f i t s M a t e r i a l S u b s i d i a r i e s u n d e r t h e B a n k rup t c y C o d e o r o t h e r D e b t o r R e l i e f L a w s n o w o r h e r e a ft e r i n e ffe c t; o r a d e c r e e o r o r d e r o f a c o u r t h a v i n g j u r i s d i c t i o n i n t h e p r e m i s e s fo r t h e ap p o i n t m e n t o f a r e c e i v e r, l i q u i d a t o r, s e q u e s t r a t o r, t ru s t e e, c u s t o d i a n o r o t h e r o ffi c e r h a v i n g s i m i l a r p o w e r s o v e r a n y C r e d i t P a r t y o r a n y o f i t s M a t e r i a l S u b s i d i a r i e s, o r o v e r a l l o r a s u b s t a n t i a l p a r t o f i t s p r o p e r t y, s h a l l h a v e b e e n e n t e r e d; o r t h e r e s h a l l h a v e o c c u r r e d t h e i n v o l u n t a r y ap p o i n t m e n t o f a n i n t e r i m r e c e i v e r, t ru s t e e o r o t h e r c u s t o d i a n o f a n y C r e d i t P a r t y 1 1 6

 

 

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o r a n y o f i t s M a t e r i a l S ub s i d i a r i e s fo r a l l o r a s ub s t a n t i a l p a r t o f i t s p r o p e r t y; o r a w a r r a n t o f a t t a c h m e n t, e x e c u t i o n o r s i m i l a r p r o c e s s s h a l l h a v e b e e n i s s u e d a g a i n s t a n y s ub s t a n t i a l p a r t o f t h e p r o p e r t y o f a n y C r e d i t P a r t y o r a n y o f i t s M a t e r i a l S ub s i d i a r i e s, a n d a n y s u c h e v e n t d e s c r i b e d i n t h i s c l a u s e ( i i ) s h a l l c o n t i n u e fo r s i x t y ( 6 0 ) d a y s w i t h o u t h a v i n g b e e n d i s m i s s e d, b o n d e d o r d i s c h a r g e d; o r Vo l u n t a ry B a n krup t c y; A p p o i n t m e n t o f R e c e i v e r, e t c. ( i ) A n y C r e d i t P a r t y o r ( g ) a n y o f i t s M a t e r i a l S ub s i d i a r i e s s h a l l h a v e a n o r d e r fo r r e l i e f e n t e r e d w i t h r e s p e c t t o i t o r s h a l l c o m m e n c e a v o l u n t a ry c a s e u n d e r t h e B a n krup t c y C o d e o r o t h e r D e b t o r R e l i e f L a w s n o w o r h e r e a ft e r i n e ffe c t, o r s h a l l c o n s e n t t o t h e e n t ry o f a n o r d e r fo r r e l i e f i n a n i n v o l u n t a ry c a s e, o r t o t h e c o n v e r s i o n o f a n i n v o l u n t a r y c a s e t o a v o l u n t a r y c a s e, u n d e r a n y s u c h l a w, o r s h a l l c o n s e n t t o t h e ap p o i n t m e n t o f o r t a k i n g p o s s e s s i o n b y a r e c e i v e r, t ru s t e e o r o t h e r c u s t o d i a n fo r a l l o r a s u b s t a n t i a l p a r t o f i t s p r o p e r t y; o r a n y C r e d i t P a r t y o r a n y o f i t s M a t e r i a l S u b s i d i a r i e s s h a l l m a k e a n y a s s i g n m e n t fo r t h e b e n e fi t o f c r e d i t o r s; o r ( i i ) a n y C r e d i t P a r t y o r a n y o f i t s M a t e r i a l S u b s i d i a r i e s s h a l l b e u n a b l e, o r s h a l l fa i l g e n e r a l l y, o r s h a l l a d m i t i n w r i t i n g i t s i n a b i l i t y, t o p a y i t s d e b t s a s s u c h d e b t s b e c o m e du e; o r t h e b o a r d o f d i r e c t o r s ( o r s i m i l a r g o v e r n i n g b o d y ) o f a n y C r e d i t P a r t y o r a n y o f i t s M a t e r i a l S u b s i d i a r i e s o r a n y c o m m i t t e e t h e r e o f s h a l l a d o p t a n y r e s o l u t i o n o r o t h e r w i s e a u t h o r i z e a n y a c t i o n t o ap p r o v e a n y o f t h e a c t i o n s r e fe r r e d t o h e r e i n o r i n S e c t i o n 9.1 ( f); o r J u d g m e n t s a n d A t t a c h m e n t s. ( i ) A n y o n e o r m o r e m o n e y o r j u d g m e n t s, w r i t s o r ( h ) w a r r a n t s o f a t t a c h m e n t o r s i m i l a r p r o c e s s a g a i n s t a l l o r a n y m a t e r i a l p o r t i o n o f a n y p r o p e r t y o f a n y C r e d i t P a r t y o r a n y o f i t s S u b s i d i a r i e s o r i n v o l v i n g a n a g g r e g a t e a m o u n t a t a n y t i m e i n e x c e s s o f $ 5 0,0 0 0,0 0 0 ( t o t h e e x t e n t n o t a d e q u a t e l y c o v e r e d b y i n s u r a n c e a s t o w h i c h a s o l v e n t a n d u n a ffi l i a t e d i n s u r a n c e c o m p a n y h a s a c k n o w l e d g e d c o v e r a g e ) s h a l l b e e n t e r e d o r fi l e d a g a i n s t a n y C r e d i t P a r t y o r a n y o f i t s S ub s i d i a r i e s o r a n y o f t h e i r r e s p e c t i v e a s s e t s a n d s h a l l r e m a i n u n d i s c h a r g e d, u n v a c a t e d, u n b o n d e d o r u n s t a y e d fo r a p e r i o d o f t h i r t y ( 3 0 ) d a y s; o r ( i i ) a n y n o n - m o n e t a ry j u d g m e n t o r o r d e r s h a l l b e r e n d e r e d a g a i n s t a n y C r e d i t P a r t y o r a n y o f i t s S ub s i d i a r i e s t h a t w o u l d r e a s o n a b l y b e e x p e c t e d t o h a v e a M a t e r i a l A d v e r s e E ffe c t, a n d s h a l l r e m a i n u n d i s c h a r g e d, u n v a c a t e d, u n b o n d e d o r u n s t a y e d fo r a p e r i o d o f t h i r t y ( 3 0 ) d a y s; o r D i s s o l u t i o n. A n y o r d e r, j u d g m e n t o r d e c r e e s h a l l b e e n t e r e d a g a i n s t a n y C r e d i t ( i ) P a r t y o r a n y o f i t s M a t e r i a l S ub s i d i a r i e s d e c r e e i n g t h e d i s s o l u t i o n o r s p l i t up o f s u c h C r e d i t P a r t y o r s u c h S ub s i d i a ry a n d s u c h o r d e r s h a l l r e m a i n u n d i s c h a r g e d o r u n s t a y e d fo r a p e r i o d i n e x c e s s o f t h i r t y ( 3 0 ) d a y s; o r P e n s i o n P l a n s. T h e r e s h a l l o c c u r o n e o r m o r e E R I S A E v e n t s w h i c h i n d i v i du a l l y (j ) o r i n t h e a g g r e g a t e r e s u l t s i n l i a b i l i t y o f a n y C r e d i t P a r t y, a n y o f i t s s u b s i d i a r i e s o r a n y o f t h e i r r e s p e c t i v e E R I S A A ffi l i a t e s i n e x c e s s o f $ 2 5,0 0 0,0 0 0 du r i n g t h e t e r m h e r e o f a n d w h i c h i s n o t p a i d b y t h e ap p l i c a b l e du e d a t e; o r C h a n g e o f C o n t r o l. A C h a n g e o f C o n t r o l s h a l l o c c u r; o r ( k ) I n v a l i d i t y o f C r e d i t D o c u m e n t s a n d O t h e r D o c u m e n t s. A t a n y t i m e a ft e r t h e ( l ) e x e c u t i o n a n d d e l i v e r y t h e r e o f, ( i ) t h i s A g r e e m e n t o r a n y o t h e r C r e d i t D o c u m e n t c e a s e s t o b e i n fu l l fo r c e a n d e ffe c t ( o t h e r t h a n b y r e a s o n o f t h e s a t i s fa c t i o n i n fu l l o f t h e O b l i g a t i o n s ( o t h e r t h a n c o n t i n g e n t a n d i n d e m n i fi e d o b l i g a t i o n s n o t t h e n du e a n d o w i n g ) i n a c c o r d a n c e w i t h t h e t e r m s h e r e o f) o r s h a l l b e d e c l a r e d n u l l a n d v o i d, o r ( i i ) a n y C r e d i t P a r t y s h a l l c o n t e s t t h e v a l i d i t y o r e n fo r c e a b i l i t y o f a n y C r e d i t D o c u m e n t i n w r i t i n g o r d e n y i n w r i t i n g t h a t i t h a s a n y fu r t h e r l i a b i l i t y, i n c l u d i n g w i t h r e s p e c t t o fu tu r e a d v a n c e s b y t h e L e n d e r s, u n d e r a n y C r e d i t D o c u m e n t t o w h i c h i t i s a p a r t y; o r 1 1 7

 

 

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Failure to Maintain REIT Status. The Parent shall, for any reason, lose or fail to(m) maintain its status as a REIT or the Borrower shall, for any reason, lose or fail to maintain its status as any of the following: a REIT, a partnership or other disregarded entity (in each case, for federal income tax purposes). Remedies. Upon the occurrence of any Event of Default described in SectionSection 9.2 9.1(f) or Section 9.1(g), automatically, and (2) upon the occurrence and during the continuance of any other Event of Default, at the request of (or with the consent of) the Required Lenders, upon notice to the Borrower by the Administrative Agent, (A) the Revolving Commitments, if any, of each Lender having such Revolving Commitments and the obligation of the Issuing Bank to issue any Letter of Credit shall immediately terminate; (B) each of the following shall immediately become due and payable, in each case without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each of the Credit Parties: (I) the unpaid principal amount of and accrued interest on the Loans, (II) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit), and (III) all other Obligations; provided, the foregoing shall not affect in any way the obligations of the Lenders under Section 2.2(b)(iii) or Section 2.3(e); and (C) the Administrative Agent shall direct the Borrower to pay (and the Borrower hereby agrees upon receipt of such notice, or upon the occurrence of any Event of Default specified in Section 9.1(f) and Section 9.1(g) to pay) to the Administrative Agent such additional amounts of cash, to be held as security for such Borrower’s reimbursement Obligations in respect of Letters of Credit then outstanding under arrangements acceptable to the Administrative Agent, equal to the Outstanding Amount of the Letter of Credit Obligations at such time. Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring hereunder shall continue to exist (and shall be deemed to be continuing) until such time as such Event of Default has been cured to the satisfaction of the Required Lenders or waived in writing in accordance with the terms of Section 11.4. Application of Funds. After the exercise of remedies provided for in Section 9.2Section 9.3 (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order: First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal, interest and Letter of Credit Fees but including without limitation all reasonable and documented out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under Section 3.1, Section 3.2 and Section 3.3) payable to the Administrative Agent, in its capacity as such; Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders including without limitation all reasonable and documented out-of-pocket fees, expenses and disbursements of any law firm or other counsel and amounts payable under Section 3.1, Section 3.2 and Section 3.3), ratably among the Lenders in proportion to the respective amounts described in this clause Second payable to them; Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, Letter of Credit Borrowings and other Obligations ratably among such parties in proportion to the respective amounts described in this clause Third payable to them; and 118

 

 

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Fourth, to (a) payment of that portion of the Obligations constituting unpaid principal of the Loans and Letter of Credit Borrowings, (b) payment of breakage, termination or other amounts owing in respect of any Swap Contract between the Borrower or any of its Subsidiaries and any Swap Bank, to the extent such Swap Contract is permitted hereunder, (c) payments of amounts due under any Treasury Management Agreement between the Borrower or any of its Subsidiaries and any Treasury Management Bank, and (d) the Administrative Agent for the account of the Issuing Bank, to Cash Collateralize that portion of the Letter of Credit Obligations comprised of the aggregate undrawn amount of Letters of Credit, ratably among such parties in proportion to the respective amounts described in this clause Fourth payable to them; and Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Applicable Laws. Subject to Section 2.3, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above. Notwithstanding the foregoing, Obligations arising under Treasury Management Agreements and Swap Contracts shall be excluded from the application described above if the Administrative Agent has not received written notice, together with such supporting documentation as the Administrative Agent may request, from the applicable Treasury Management Bank or Swap Bank, as the case may be. Each Treasury Management Bank or Swap Bank not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of Article X for itself and its Affiliates as if a “Lender” party hereto. AGENCYSection 10 Appointment and Authority.Section 10.1 Each of the Lenders and the Issuing Bank hereby irrevocably appoints KeyBank(a) to act on its behalf as the Administrative Agent hereunder and under the other Credit Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Section are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and no Credit Party nor any of its Subsidiaries shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent” herein or in any other Credit Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. Each of the Lenders hereby irrevocably appoints, designates and authorizes the(b) Administrative Agent to take such action on its behalf under the provisions of this Agreement and each Credit Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any Credit Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any applicable Credit Document, the Administrative Agent shall 119

 

 

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not have any duties or responsibilities, except those expressly set forth herein or therein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any applicable Credit Document or otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in any Credit Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Rights as a Lender. The Person serving as the Administrative Agent hereunderSection 10.2 shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary of the Borrower or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders. Exculpatory Provisions.Section 10.3 The Administrative Agent shall not have any duties or obligations except those(a) expressly set forth herein and in the other Credit Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent: shall not be subject to any fiduciary or other implied duties, regardless of(i) whether a Default has occurred and is continuing; shall not have any duty to take any discretionary action or exercise any(ii) discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Credit Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Credit Document or Applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and shall not, except as expressly set forth herein and in the other Credit(iii) Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity. 120

 

 

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The Administrative Agent shall not be liable for any action taken or not taken by(b) it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 11.4 and 9.2) or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and nonappealable judgment. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, a Lender or an Issuing Bank. The Administrative Agent shall not be responsible for or have any duty to(c) ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Credit Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Section 5 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. Reliance by Administrative Agent. The Administrative Agent shall be entitled toSection 10.4 rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower and its Subsidiaries), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. Delegation of Duties. The Administrative Agent may perform any and all of itsSection 10.5 duties and exercise its rights and powers hereunder or under any other Credit Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Section shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents. Resignation of Administrative Agent.Section 10.6 121

 

 

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The Administrative Agent may at any time give notice of its resignation to the(a) Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the consent of the Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to) on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed such resignation shall become effective in accordance with such notice on the Resignation Effective Date. If the Person servicing as Administrative Agent is a Defaulting Lender pursuant(b) to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law by notice in writing to the Borrower and such Person, remove such Person as the Administrative Agent and, with the consent of the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after such notice (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date. With effect from the Resignation Effective Date or the Removal Effective Date(c) (as applicable) (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Credit Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Credit Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (2) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders shall appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent, and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent’s resignation hereunder and under the other Credit Documents, the provisions of this Section 10 and Section 11.2 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent. Non-Reliance on Administrative Agent and Other Lenders. Each of the LendersSection 10.7 and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and 122

 

 

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based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Credit Document or any related agreement or any document furnished hereunder or thereunder. No Other Duties, etc. Anything herein to the contrary notwithstanding, none ofSection 10.8 the Book Runners, Lead Arrangers, Documentation Agents, Co-Syndication Agents or similarly titled Persons listed on the cover page hereof (if any) shall have any powers, duties or responsibilities under this Agreement or any of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent, Sustainable Agent, a Lender or an Issuing Bank hereunder. Administrative Agent May File Proofs of Claim. In case of the pendency of anySection 10.9 proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise: to file and prove a claim for the whole amount of the principal and interest(a) owing and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Bank and the Administrative Agent under Section 2.10 and Section 11.2) allowed in such judicial proceeding; and to collect and receive any monies or other property payable or deliverable on any(b) such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Section 2.10 and Section 11.2). Security Matters.Section 10.10 As may be applicable at any time, the Lenders (including the Issuing Bank and(a) the Swingline Lender) irrevocably authorize the Administrative Agent, at its option and in its discretion to release any Guarantor from its obligations under this Agreement and the other Credit Documents if such Person ceases to be a Guarantor as a result of a transaction permitted under the Credit Documents. Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release any Guarantor from its obligations under this Agreement pursuant to this Section. As may be applicable at any time, anything contained in any of the Credit(b) Documents to the contrary notwithstanding, each of the Credit Parties, the Administrative Agent and each holder of the Obligations hereby agrees that no holder of the Obligations shall have any right individually to enforce this Agreement, the Notes or any other Credit Document, it being 123

 

 

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understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Administrative Agent, on behalf of the holders of the Obligations in accordance with the terms hereof and, as may be applicable at any time, all powers, rights and remedies under any Credit Documents may be exercised solely by the Administrative Agent. As may be applicable at any time, no Swap Contract or Treasury Management(c) Agreement will create (or be deemed to create) in favor of any Swap Bank or any Treasury Management Banks, respectively that is a party thereto any rights in connection with the obligations of the Borrower or any other Credit Party under the Credit Documents except as expressly provided herein or in the other Credit Documents. Erroneous Payments.Section 10.11 If the Administrative Agent notifies a Lender or any Person who has received(a) funds on behalf of a Lender, such Lender (any such Lender or other recipient, a “Payment Recipient”) that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error. Without limiting immediately preceding (a), each Lender or any Person who has(b) received funds on behalf of a Lender, such Lender hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender or other such recipient to otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case: (A) in the case of immediately preceding clauses (x) or (y), an error shall(i) be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error has been made (in the case of immediately 124

 

 

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preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and such Lender shall (and shall cause any other recipient that receives funds(ii) on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 10.11. Each Lender hereby authorizes the Administrative Agent to set off, net and apply(c) any and all amounts at any time owing to such Lender under any Credit Document, or otherwise payable or distributable by the Administrative Agent to such Lender from any source, against any amount due to the Administrative Agent under immediately preceding clause (a) or under the indemnification provided by such Lender to the Administrative Agent under this Agreement. In the event that an Erroneous Payment (or portion thereof) is not recovered by(d) the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding clause (a), from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an “Erroneous Payment Return Deficiency”), upon the Administrative Agent’s notice to such Lender or Issuing Lender at any time, (i) such Lender shall be deemed to have assigned its Loans (but not its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the “Erroneous Payment Impacted Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Class, the “Erroneous Payment Deficiency Assignment”) at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an approved electronic platform as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Loans to the Borrower or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous 125

 

 

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Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender under the this Agreement with respect to each Erroneous Payment Return Deficiency (the “Erroneous Payment Subrogation Rights”). The parties hereto agree that an Erroneous Payment shall pay, prepay, repay,(e) discharge or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party or any of its Subsidiaries relating to this Agreement. To the extent permitted by applicable law, no Payment Recipient shall assert any(f) right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on “discharge for value” or any similar doctrine. Each party’s obligations, agreements and waivers under this Section 10.11 shall(g) survive the resignation or replacement of the Administrative Agent, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof). MISCELLANEOUSSection 11 Notices; Effectiveness; Electronic Communications.Section 11.1 Notices Generally. Except in the case of notices and other communications(a) expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: if to the Administrative Agent, the Borrower or any other Credit Party,(i) to the address, telecopier number, electronic mail address or telephone number specified in Appendix B:; or if to any Lender, the Issuing Bank or Swingline Lender, to the address,(ii) telecopier number, electronic mail address or telephone number in its Administrative Questionnaire on file with the Administrative Agent. Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b). 126

 

 

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Electronic Communications. Notices and other communications to the Lenders(b) and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures reasonably approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the Issuing Bank pursuant to Section 2 if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent and the Borrower that it is incapable of receiving notices under such Section by electronic communication. The Administrative Agent or any Credit Party may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor. Change of Address, Etc. Any party hereto may change its address, telecopier(c) number or electronic mail address for notices and other communications hereunder by notice to the other parties hereto. Platform.(d) Each Credit Party agrees that the Administrative Agent may, but shall(i) not be obligated to, make the Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debtdomain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the “Platform”). The Platform is provided “as is” and “as available.” The Agent Parties(ii) (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower or the other Credit Parties, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s, any other Credit Party’s or the Administrative Agent’s transmission of communications through the Platform. “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Credit Party pursuant to any Credit Document or the transactions contemplated therein which is distributed to the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through the Platform. 127

 

 

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Expenses; Indemnity; Damage Waiver.Section 11.2 Costs and Expenses. The Credit Parties shall pay (i) all reasonable and(a) documented out-of-pocket expenses incurred by the Administrative Agent, the Sustainable Agent, and their respective Affiliates (including the reasonable and documented out-of-pocket fees, charges and disbursements of counsel for the Administrative Agent, the Sustainable Agent, and their respective Affiliates (which counsel may include their respective employees)) in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable and documented out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Bank (including the reasonable and documented out-of-pocket fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the Issuing Bank (which counsel may include their respective employees)) in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Credit Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. Indemnification by the Credit Parties. The Credit Parties shall indemnify the(b) Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the documented and reasonable out-of-pocket fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any of its Subsidiaries arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby or otherwise in connection herewith or therewith, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, (iv) the execution or delivery of any commitment or fee letters in contemplation of this Agreement, the other Credit Documents and the transactions hereunder, the performance by the parties thereto of their respective obligations thereunder or the consummation of the transactions contemplated thereby, or (v) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any of its Subsidiaries, and regardless of whether any Indemnitee is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or any of its 128

 

 

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Subsidiaries against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Credit Document, if the Borrower or such Subsidiary has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This Section 11.2(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. Reimbursement by Lenders. To the extent that the Credit Parties for any reason(c) fail to pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the Issuing Bank or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Issuing Bank or such Related Party, as the case may be, such Lender’s pro rata share (in each case, determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Issuing Bank in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Issuing Bank in connection with such capacity. The obligations of the Lenders under this subsection (c) are subject to the provisions of this Agreement that provide that their obligations are several in nature, and not joint and several. Waiver of Consequential Damages, Etc. To the fullest extent permitted by(d) Applicable Law, none of the Credit Parties shall assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby. Payments. All amounts due under this Section shall be payable promptly, but in(e) any event within ten (10) Business Days after written demand therefor (including delivery of copies of applicable invoices). Survival. The provisions of this Section shall survive resignation or replacement(f) of the Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender, termination of the commitments hereunder and repayment, satisfaction and discharge of the loans and obligations hereunder. Set-Off. Subject in all respects to Section 2.14, if an Event of Default shall haveSection 11.3 occurred and be continuing, each Lender, the Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Credit Document to such Lender or the Issuing Bank, irrespective of whether or not such Lender or the Issuing Bank shall have made any demand under this Agreement or any other Credit Document and although such obligations of the Borrower or such 129

 

 

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Credit Party may be contingent or unmatured or are owed to a branch or office of such Lender or the Issuing Bank different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have. Each of the Lenders and the Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application. Amendments and Waivers.Section 11.4 Required Lenders Consent. Subject to Section 3.1(a), Section 11.4(b) and(a) Section 11.4(c), no amendment, modification, termination or waiver of any provision of the Credit Documents, or consent to any departure by any Credit Party therefrom, shall in any event be effective without the written concurrence of the Administrative Agent and the Required Lenders; provided that (i) the Administrative Agent may, with the consent of the Borrower only, amend, modify or supplement this Agreement to cure any ambiguity, omission, defect or inconsistency, so long as such amendment, modification or supplement does not adversely affect the rights of any Lender or the Issuing Bank, (ii) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (iii) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that (A) the Commitments, Loans and/or Letter of Credit Obligations of such Lender may not be increased or extended without the consent of such Lender, and (B) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender disproportionately adversely relative to other affected Lenders shall require the consent of such Defaulting Lender, (iv) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent provisions set forth herein, and (v) the Required Lenders shall determine whether or not to allow any Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders; provided further that, subject further to clauses (b) and (c) below, (A) any term of this Agreement or of any other Credit Document relating solely to the rights or obligations of any Term Lenders in respect of anythe Existing Term Loan or any Additional Term Loan, and not any other Lenders, may be amended, and the performance or observance by the Borrower or any other Credit Party of any such terms may be waived (either generally or in a particular instance and either retroactively or prospectively) with, but only with, the written consent of the Required Term Lenders (and, in the case of an amendment to any Credit Document, the written consent of each Credit Party a party thereto), and (B) any term of this Agreement or of any other Credit Document relating solely to the rights or obligations of the Revolving Lenders, and not any other Lenders, may be amended, and the performance or observance by the Borrower or any other Credit Party of any such terms may be waived (either generally or in a particular instance and either retroactively or prospectively) with, and only with, the written consent of the Required Revolving Lenders (and, in the case of an amendment to any Credit Document, the written consent of each Credit Party a party thereto). Affected Lenders’ Consent. Without the written consent of each Lender (other(b) than a Defaulting Lender except as provided in clause (a)(iii) above) that would be affected thereby, no amendment, modification, termination, or consent shall be effective if the effect thereof would: 130

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extend the Revolving Commitment Termination Date, except pursuant to(i) an extension thereof effected in accordance with Section 2.18, or extend theany Term Maturity Date; waive, reduce or postpone any scheduled repayment (but not(ii) prepayment) or alter the required application of any prepayment pursuant to Section 2.12 or the application of funds pursuant to Section 9.3, as applicable; extend the stated expiration date of any Letter of Credit, beyond the(iii) Revolving Commitment Termination Date; reduce the principal of or the rate of interest on any Loan (other than(iv) under Section 3.1(a) or any waiver of the imposition of the Default Rate pursuant to Section 2.9) or any fee or premium payable hereunder, or change the manner of computation of any financial or other ratio (including any change in any applicable defined term) used in determining the Applicable Margin or Facility Fee Rate that would result in a reduction of any interest rate on any Loan or any fee payable hereunder; provided, however, that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate; extend the time for payment of any such interest or fees;(v) reduce the principal amount of any Loan or any reimbursement(vi) obligation in respect of any Letter of Credit; amend, modify, terminate or waive any provision of this Section 11.4(b)(vii) or Section 11.4(c) or any other provision of this Agreement that expressly provides that the consent of all Lenders is required; change the percentage of the outstanding principal amount of Loans that(viii) is required for the Lenders or any of them to take any action hereunder or amend the definition of “Required Lenders”, “Required Revolving Lenders”, “Required Term Lenders” or “Revolving Commitment Percentage” or modify the amount of the Commitment of any Lender; as may be applicable at any time, release the Parent (as Guarantor) or all(ix) or substantially all of the other Guarantors from their respective obligations hereunder, in each case, except as expressly provided in the Credit Documents; or consent to the assignment or transfer by the Borrower of any of its rights(x) and obligations under any Credit Document (except pursuant to a transaction permitted hereunder). Other Consents. No amendment, modification, termination or waiver of any(c) provision of the Credit Documents, or consent to any departure by the Borrower or any other Credit Party therefrom, shall: increase any Revolving Commitment of any Lender over the amount(i) thereof then in effect without the consent of such Lender; provided, no amendment, 131

 

 

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modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Revolving Commitment of any Lender; amend, modify, terminate or waive any provision hereof relating to the(ii) Swingline Sublimit or the Swingline Loans without the consent of the Swingline Lender; amend, modify, terminate or waive any obligation of Lenders relating to(iii) the purchase of participations in Letters of Credit as provided in Section 2.3(c) without the written consent of the Administrative Agent and of the Issuing Bank; amend, modify, terminate or waive any provision of this Section 11 as(iv) the same applies to the Administrative Agent, or any other provision hereof as the same applies to the rights or obligations of the Administrative Agent, in each case without the consent of such Administrative Agent; amend the provisions of Section 2.13(d) or Section 9.3 without the(v) consent of all Lenders; reserved; or(vi) unless signed by the Credit Parties and the Required Revolving(vii) Lenders: amend or waive compliance with the conditions precedent to the(1) obligations of the Revolving Lenders to make any Credit Extension; amend or waive non-compliance with any provision of Section 2.11(c);(2) waive any Default or Event of Default for the purpose of satisfying the(3) conditions precedent to the obligations of the Revolving Lenders to make any Credit Extension; or change any of the provisions of this clause (c)(vii).(4) Execution of Amendments, etc. The Administrative Agent may, but shall have(d) no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this Section 11.4 shall be binding upon each Lender at the time outstanding, each future Lender and, if signed by a Credit Party, on such Credit Party. Conforming Changes. Notwithstanding anything to the contrary, any amendment(e) contemplated by Sections 1.5 or 3.5 shall be effective as contemplated by such Sections 1.5 or 3.5, as applicable. Successors and Assigns.Section 11.5 Successors and Assigns Generally. The provisions of this Agreement shall be(a) binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign 132

 

 

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or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. Assignments by Lenders. Any Lender may at any time assign to one or more(b) assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments, Loans and obligations hereunder at the time owing to it); provided that any such assignment shall be subject to the following conditions: Minimum Amounts.(i) in the case of an assignment of the entire remaining amount of(A) the assigning Lender’s Commitments and the Loans at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and in any case not described in subsection (b)(i)(A) of this Section,(B) the aggregate amount of the Commitments (which for this purpose includes loans and obligations in respect thereof outstanding thereunder) or, if the Commitments are not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment Agreement, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of Default shall then exist, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed). Proportionate Amounts. Each partial assignment shall be made as an(ii) assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Commitments and Loans assigned. Required Consents. No consent shall be required for any assignment(iii) except to the extent required by subsection (b)(i)(B) of this Section and, in addition: the consent of the Borrower (such consent not to be(A) unreasonably withheld or delayed) shall be required unless (x) an Event of Default shall have occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the 133

 

 

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Administrative Agent within five (5) Business Days after having received notice thereof; the consent of the Administrative Agent (such consent not to be(B) unreasonably withheld or delayed) shall be required for assignments in respect of Revolving Commitments or any portion of the Existing Term Loan or any Additional Term Loan if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender; the consent of the Issuing Bank (such consent not to be(C) unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment; and the consent of the Swingline Lender (such consent not to be(D) unreasonably withheld or delayed) shall be required for any assignment in respect of any Revolving Commitment. Assignment Agreement. The parties to each assignment shall execute(iv) and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee in the amount of $3,500, unless waived, in whole or in part by the Administrative Agent in its discretion. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. No Assignment to Borrower, Affiliates or Subsidiaries. No such(v) assignment shall be made to the Borrower, any of the Borrower’s Affiliates or Subsidiaries, or any Defaulting Lender. No Assignment to Natural Persons. No such assignment shall be made(vi) to a natural person. Certain Additional Payments. In connection with any assignment of(vii) rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline Lender and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Revolving Commitment Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs. 134

 

 

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Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.1, 3.2 and 3.3 (subject to the requirements and limitations therein) and 11.2 with respect to facts and circumstances occurring prior to the effective date of such assignment. If requested by the assignee, the Borrower will execute and deliver, at their own expense, Notes to the assignee evidencing the interests taken by way of assignment hereunder. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section. Register. The Administrative Agent, acting solely for this purpose as an agent of(c) the Borrower, shall maintain at one of its offices in the United States, a copy of each Assignment Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. Any Lender may at any time, without the consent of, or notice to, the Borrower(d) or the Administrative Agent, the Issuing Bank or the Swingline Lender, sell participations to any Person (other than a natural Person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Bank and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.2(c) with respect to any payments made by such Lender to its Participant(s). Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in clauses (b) or (c) of Section 11.4 that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.1, 3.2 and 3.3 (subject to the requirements and limitations therein, including the requirements under Section 3.3(f) (it being understood that the documentation required under Section 3.3(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to clause (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of 135

 

 

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Sections 2.17 and 3.4 as if it were an assignee under clause (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 3.2 or 3.3, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.17 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.3 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.14 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Credit Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under any Credit Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register. Certain Pledges. Any Lender may at any time pledge or assign a security interest(e) in all or any portion of its rights under this Agreement, or any promissory notes evidencing its interests hereunder, to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. Independence of Covenants. All covenants hereunder shall be given independentSection 11.6 effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists. Survival of Representations, Warranties and Agreements. All representations,Section 11.7 warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Credit Extension and the Term Loan. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Credit Party set forth in Section 3.1(c), Section 3.2, Section 3.3, Section 11.2, Section 11.3, and Section 11.10 and the agreements of the Lenders and the Administrative Agent set forth in Section 2.14, Section 10.3 and Section 11.2(c) shall survive the payment of the Loans, the cancellation, expiration or cash collateralization of the Letters of Credit, and the termination hereof. No Waiver; Remedies Cumulative. No failure or delay on the part of theSection 11.8 Administrative Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to each Agent and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in 136

 

 

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any of the other Credit Documents, any Swap Contracts or any Treasury Management Agreements. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy. Marshalling; Payments Set Aside. Neither the Administrative Agent nor anySection 11.9 Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or payments to the Administrative Agent, the Issuing Bank, the Swingline Lender or the Lenders (or to the Administrative Agent, on behalf of Lenders), or the Administrative Agent, the Issuing Bank or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred. Severability. In case any provision in or obligation hereunder or any Note orSection 11.10 other Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. Obligations Several; Independent Nature of Lenders’ Rights. The obligations ofSection 11.11 the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving Commitment of any other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed to constitute the Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to Section 10.10(b), each Lender shall be entitled to protect and enforce its rights arising under this Agreement and the other Credit Documents and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose. Headings. Section headings herein are included herein for convenience ofSection 11.12 reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect. Applicable Laws.Section 11.13 Governing Law. This Agreement shall be governed by, and construed in(a) accordance with, the law of the State of New York. Submission to Jurisdiction. Each party hereto irrevocably and unconditionally(b) submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan and of the United States District Court of the Southern District, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Credit Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Applicable Law, in such Federal 137

 

 

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court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Credit Document shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Credit Document against any Credit Party or its properties in the courts of any jurisdiction. Waiver of Venue. Each party hereto irrevocably and unconditionally waives, to(c) the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Credit Document in any court referred to in subsection (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. Service of Process. Each party hereto irrevocably consents to service of process(d) in the manner provided for notices in Section 11.1. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBYSection 11.14 IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. Confidentiality. Each of the Administrative Agent, the Issuing Bank and theSection 11.15 Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or any Subsidiary and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent, any Lender, the Issuing Bank or any of their respective Affiliates on a 138

 

 

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non-confidential basis from a source other than the Borrower. In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection with the administration of this Agreement, the other Credit Documents, and the Commitments. For purposes of this Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Bank on a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries, unless, in the case of information received from the Borrower or any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as non-confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. Each of the Administrative Agent, the Issuing Bank and the Lenders acknowledges that (i) the Information may include material non-public information concerning the Borrower or any Subsidiary, as the case may be, (ii) it has developed compliance procedures regarding the use of material non-pubic information and (iii) it will handle such material non-public information in accordance with Applicable Law, including United States federal and state securities laws. Usury Savings Clause. Notwithstanding any other provision herein, theSection 11.16 aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under Applicable Laws shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the aggregate outstanding amount of the Loans made hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of the Lenders and each of the Credit Parties to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender’s option be applied to the aggregate outstanding amount of the Loans made hereunder or be refunded to each of the applicable Credit Parties. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Highest Lawful Rate, such Person may, to the extent permitted by Applicable Laws, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder. Counterparts; Integration; Effectiveness. This Agreement may be executed inSection 11.17 counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Credit Documents, and any separate letter agreements with respect to fees payable to the 139

 

 

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Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 5, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or .pdf file shall be effective as delivery of a manually executed counterpart of this Agreement. No Advisory of Fiduciary Relationship. In connection with all aspects of eachSection 11.18 transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Document), each of the Credit Parties acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (a)(i) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders, are arm’s-length commercial transactions between the Credit Parties, on the one hand, and the Administrative Agent and the Lenders, on the other hand, (ii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) each of the Credit Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Credit Documents; (b)(i) the Administrative Agent and each Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not and will not be acting as an advisor, agent or fiduciary, for any Credit Party or any of their Affiliates or any other Person and (ii) neither the Administrative Agent nor any Lender has any obligation to any Credit Party or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Documents; and (c) the Administrative Agent, each Lender and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Credit Parties and their Affiliates, and neither the Administrative Agent nor any Lender has any obligation to disclose any of such interests to any Credit Party or its Affiliates. To the fullest extent permitted by law, each of the Credit Parties hereby waives and releases, any claims that it may have against the Administrative Agent and each Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. Electronic Execution of Assignments and Other Documents. The wordsSection 11.19 “execution,” “signed,” “signature,” and words of like import in any Assignment Agreement or in any amendment, waiver, modification or consent relating hereto shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Laws, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. USA PATRIOT Act. Each Lender and the Administrative Agent (for itself andSection 11.20 not on behalf of any Lender) hereby notifies the Credit Parties that, pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Credit Parties, which information includes names and addresses and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Credit Parties in accordance with the Patriot Act. As requested by any Lender, any Borrower that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation shall deliver a Beneficial Ownership Certification in relation to such Borrower. Each Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Agent or such Lender requests in order to comply with 140

 

 

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its ongoing obligations under applicable “know your customer” and Anti-Money Laundering Laws and Anti-Corruption Laws, including the Patriot Act. Acknowledgement and Consent to Bail-In of Affected Financial Institutions.Section 11.21 Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Credit Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: the application of any Write-Down and Conversion Powers by the applicable(a) Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender that is an Affected Financial Institution; and the effects of any Bail-In Action on any such liability, including, if applicable:(b) a reduction in full or in part or cancellation of any such liability;(i) a conversion of all, or a portion of, such liability into shares or other(ii) instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document; or (iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any Affected Resolution Authority. Existing Agreement. Simultaneous with the initial Loans advanced hereunder,Section 11.22 all amounts due under the Existing Agreement shall be repaid in full; provided that the parties hereby agree that there is no novation of the Existing Agreement. On the Effective Date, the rights and obligations of the parties under the Existing Agreement shall be subsumed within and be governed by this Agreement. Acknowledgement Regarding Any Supported QFCs. To the extent that thisSection 11.23 Agreement provides support, through a guarantee or otherwise, for any Swap Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States): In the event a Covered Entity that is party to a Supported QFC (each, a “Covered(a) Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution 141

 

 

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R e g i m e i f t h e S up p o r t e d Q F C a n d s u c h Q F C C r e d i t S up p o r t ( a n d a n y s u c h i n t e r e s t, o b l i g a t i o n a n d r i g h t s i n p r o p e r t y ) w e r e g o v e rn e d b y t h e l a w s o f t h e U n i t e d S t a t e s o r a s t a t e o f t h e U n i t e d S t a t e s. I n t h e e v e n t a C o v e r e d P a r t y o r a B H C A c t A ffi l i a t e o f a C o v e r e d P a r t y b e c o m e s s ubj e c t t o a p r o c e e d i n g u n d e r a U.S. S p e c i a l R e s o l u t i o n R e g i m e, D e fa u l t R i g h t s t h a t m i g h t o t h e rw i s e ap p l y t o s u c h S up p o r t e d Q F C o r a n y Q F C C r e d i t S up p o r t t h a t m a y b e e x e r c i s e d a g a i n s t s u c h C o v e r e d P a r t y a r e p e r m i t t e d t o b e e x e r c i s e d t o n o g r e a t e r e x t e n t t h a n s u c h D e fa u l t R i g h t s c o u l d b e e x e r c i s e d u n d e r t h e U.S. S p e c i a l R e s o l u t i o n R e g i m e i f t h e S up p o r t e d Q F C w e r e g o v e rn e d b y t h e l a w s o f t h e U n i t e d S t a t e s o r a s t a t e o f t h e U n i t e d S t a t e s. Wi t h o u t l i m i t a t i o n o f t h e fo r e g o i n g, i t i s u n d e r s t o o d a n d a g r e e d t h a t r i g h t s a n d r e m e d i e s o f t h e p a r t i e s w i t h r e s p e c t t o a D e fa u l t i n g L e n d e r s h a l l i n n o e v e n t a ffe c t t h e r i g h t s o f a n y C o v e r e d P a r t y w i t h r e s p e c t t o a S up p o r t e d Q F C o r a n y Q F C C r e d i t S up p o r t. A s u s e d i n t h i s § 3 6, t h e fo l l o w i n g t e r m s h a v e t h e fo l l o w i n g m e a n i n g s:( b ) “ B H C A c t A ffi l i a t e ” o f a p a r t y m e a n s a n “ a ffi l i a t e ” ( a s s u c h t e r m i s d e fi n e d u n d e r, a n d i n t e rp r e t e d i n a c c o r d a n c e w i t h, 1 2 U.S.C. 1 8 4 1 ( k ) ) o f s u c h p a r t y. “ C o v e r e d E n t i t y ” m e a n s a n y o f t h e fo l l o w i n g: ( i ) a “ c o v e r e d e n t i t y ” a s t h a t t e r m i s d e fi n e d i n, a n d i n t e rp r e t e d i n a c c o r d a n c e w i t h, 1 2 C.F.R. § 2 5 2.8 2 ( b ); ( i i ) a “ c o v e r e d b a n k ” a s t h a t t e r m i s d e fi n e d i n, a n d i n t e rp r e t e d i n a c c o r d a n c e w i t h, 1 2 C.F.R. § 4 7.3 ( b ); o r ( i i i ) a “ c o v e r e d F S I ” a s t h a t t e r m i s d e fi n e d i n, a n d i n t e rp r e t e d i n a c c o r d a n c e w i t h, 1 2 C.F.R. § 3 8 2.2 ( b ). “ D e fa u l t R i g h t ” h a s t h e m e a n i n g a s s i g n e d t o t h a t t e r m i n, a n d s h a l l b e i n t e rp r e t e d i n a c c o r d a n c e w i t h, 1 2 C.F.R. § § 2 5 2.8 1, 4 7.2 o r 3 8 2.1, a s a p p l i c a b l e. [ S i g n a tu r e s o n F o l l o w i n g P a g e ( s ) ] 1 4 2