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AMENDED AND RESTATED CREDIT AGREEMENT
dated as of March 31, 1999
by and among
GOLF TRUST OF AMERICA, L.P.,
as Borrower,
the Guarantors referred to in this Agreement,
the Lenders referred to in this Agreement,
NATIONSBANK, N.A.
as Administrative Agent,
NATIONSBANC ▇▇▇▇▇▇▇▇▇▇ SECURITIES LLC,
Sole Lead Arranger and Book Manager,
and
FIRST UNION NATIONAL BANK,
As Syndication Agent
and
BANKBOSTON, N.A.,
As Documentation Agent
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TABLE OF CONTENTS
ARTICLE I DEFINITIONS.......................................................1
SECTION 1.1 Definitions....................................................1
SECTION 1.2 General.......................................................18
SECTION 1.3 Other Definitions and Provisions..............................18
ARTICLE II REVOLVING CREDIT FACILITY.......................................18
SECTION 2.1 Loans.........................................................18
SECTION 2.2 Procedure for Advances of Loans...............................19
SECTION 2.3 Repayment of Loans............................................19
SECTION 2.4 Notes.........................................................20
SECTION 2.5 Termination of Credit Facility................................20
SECTION 2.6 Increases in Credit Facility..................................20
SECTION 2.7 Use of Proceeds...............................................21
ARTICLE IIA LETTER OF CREDIT FACILITY......................................21
SECTION 2A.1 Commitment....................................................21
SECTION 2A.2 Procedure for Issuance of Letters of Credit...................22
SECTION 2A.3 Commissions and Other Charges.................................22
SECTION 2A.4 L/C Participations............................................23
SECTION 2A.5 Reimbursement Obligation of the Borrower......................24
SECTION 2A.6 Obligations Absolute..........................................24
SECTION 2A.7 Effect of Application.........................................25
ARTICLE III GENERAL LOAN PROVISIONS........................................25
SECTION 3.1 Interest......................................................25
SECTION 3.2 Notice and Manner of Conversion or Continuation of Loans......27
SECTION 3.3 Fees..........................................................28
SECTION 3.4 Payment.......................................................28
SECTION 3.5 Right of Set-off; Adjustments.................................29
SECTION 3.6 Nature of Obligations of Lenders Regarding Extensions of
Credit; Assumption by the Administrative Agent................30
SECTION 3.7 Indemnity.....................................................30
SECTION 3.8 Increased Cost and Reduced Return.............................31
SECTION 3.9 Limitation on Types of Loans..................................32
SECTION 3.10 Illegality....................................................32
SECTION 3.11 Treatment of Affected Loans...................................32
SECTION 3.12 Compensation..................................................33
SECTION 3.13 Taxes.........................................................33
SECTION 3.14 REIT Status...................................................35
SECTION 3.15 Senior Debt...................................................33
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ARTICLE IV GUARANTY........................................................35
SECTION 4.1 Guaranty of Obligations of the Guarantors.....................35
SECTION 4.2 Nature of Guaranty............................................36
SECTION 4.3 Demand by the Administrative Agent............................37
SECTION 4.4 Waivers.......................................................37
SECTION 4.5 Benefits of Guaranty..........................................37
SECTION 4.6 Modification of Loan Documents etc............................37
SECTION 4.7 Reinstatement.................................................38
SECTION 4.8 Waiver of Subrogation and Contribution........................39
SECTION 4.9 Remedies......................................................39
SECTION 4.10 Limit of Liability............................................39
ARTICLE V CLOSING; CONDITIONS OF CLOSING AND BORROWING.....................39
SECTION 5.1 Closing.......................................................39
SECTION 5.2 Conditions to Closing and Initial Loan........................39
SECTION 5.3 Conditions to All Loans.......................................42
ARTICLE VI REPRESENTATIONS AND WARRANTIES..................................43
SECTION 6.1 Representations and Warranties................................43
SECTION 6.2 Survival of Representations and Warranties, Etc...............50
ARTICLE VII FINANCIAL INFORMATION AND NOTICES..............................50
SECTION 7.1 Financial Statements..........................................51
SECTION 7.2 Officer's Compliance Certificate..............................51
SECTION 7.3 Accountants'Certificate.......................................51
SECTION 7.4 Other Reports.................................................52
SECTION 7.5 Notice of Litigation and Other Matters........................52
SECTION 7.6 Accuracy of Information.......................................53
ARTICLE VIII AFFIRMATIVE COVENANTS.........................................53
SECTION 8.1 Preservation of Existence and Related Matters.................53
SECTION 8.2 Maintenance of Property.......................................54
SECTION 8.3 Insurance.....................................................54
SECTION 8.4 Accounting Methods and Financial Records......................54
SECTION 8.5 Payment and Performance of Obligations........................54
SECTION 8.6 Compliance With Laws and Approvals............................54
SECTION 8.7 Environmental Laws............................................55
SECTION 8.8 Compliance with ERISA.........................................55
SECTION 8.9 Compliance With Agreements....................................55
SECTION 8.10 Unencumbered Pool.............................................56
SECTION 8.11 Visits and Inspections........................................58
SECTION 8.12 Subsidiaries..................................................58
SECTION 8.13 Further Assurances............................................58
SECTION 8.14 Line of Business..............................................58
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SECTION 8.15 Participating Leases..........................................58
SECTION 8.16 Year 2000 Compliance..........................................58
ARTICLE IX FINANCIAL COVENANTS.............................................59
SECTION 9.1 Minimum Tangible Net Worth....................................59
SECTION 9.2 Liabilities to Assets Ratio...................................59
SECTION 9.3 Interest Coverage Ratio.......................................59
SECTION 9.4 Debt Service Coverage Ratio...................................59
SECTION 9.5 Fixed Charge Coverage Ratio...................................59
ARTICLE X NEGATIVE COVENANTS...............................................60
SECTION 10.1 Limitations on Debt...........................................60
SECTION 10.2 Limitations on Contingent Obligations.........................60
SECTION 10.3 Limitations on Liens..........................................60
SECTION 10.4 Limitations on Loans, Advances, Investments and Acquisitions..61
SECTION 10.5 Limitations on Mergers and Liquidation........................62
SECTION 10.6 Limitations on Sale of Assets.................................62
SECTION 10.7 Limitations on Dividends and Distributions....................62
SECTION 10.8 Transactions with Affiliates..................................63
SECTION 10.9 Certain Accounting Changes....................................63
SECTION 10.10 Restrictions on Prepayments...................................63
SECTION 10.11 Limitations on Improvements...................................63
SECTION 10.12 Restrictive Agreements........................................63
SECTION 10.13 Amendments....................................................63
ARTICLE XI DEFAULT AND REMEDIES............................................64
SECTION 11.1 Events of Default.............................................64
SECTION 11.2 Remedies......................................................66
SECTION 11.3 Rights and Remedies Cumulative; Non-Waiver; etc...............67
ARTICLE XII THE ADMINISTRATIVE AGENT.......................................68
SECTION 12.1 Appointment, Powers, and Immunities...........................68
SECTION 12.2 Reliance by Agent.............................................68
SECTION 12.3 Defaults......................................................69
SECTION 12.4 Rights as Lender..............................................69
SECTION 12.5 Indemnification...............................................69
SECTION 12.6 Non-Reliance on Agent and Other Lenders.......................70
SECTION 12.7 Resignation; Removal of Agent; Successor Agents...............70
SECTION 12.8 Documentation Agent and Syndication Agent.....................71
ARTICLE XIII MISCELLANEOUS.................................................71
SECTION 13.1 Notices.......................................................71
SECTION 13.2 Expenses; Indemnification.....................................72
SECTION 13.3 Set-off.......................................................73
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SECTION 13.4 Governing Law.................................................74
SECTION 13.5 Consent to Jurisdiction.......................................74
SECTION 13.6 Waiver of Jury Trial..........................................74
SECTION 13.7 Reversal of Payments..........................................74
SECTION 13.8 Injunctive Relief; Punitive Damages...........................75
SECTION 13.9 Accounting Matters............................................75
SECTION 13.10 Assignments and Participations................................75
SECTION 13.11 Amendments and Waivers........................................77
SECTION 13.12 Performance of Duties.........................................78
SECTION 13.13 All Powers Coupled with Interest..............................78
SECTION 13.14 Survival of Indemnities.......................................78
SECTION 13.15 Titles and Captions...........................................78
SECTION 13.16 Severability of Provisions....................................78
SECTION 13.17 Counterparts..................................................78
SECTION 13.18 Term of Agreement.............................................79
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EXHIBITS
A - Form of Revolving Credit Note
B - Form of Notice of Borrowing
C - Form of Notice of Repayment
D - Form of Notice of Conversion/Continuation
E - Form of Officer's Compliance Certificate
F - Form of Assignment and Acceptance
G - Form of Guaranty Supplement
H - Form of Pool Valuation Certificate
I - Form of "K-1" Report
J-1 - Form of New Lender Supplement
J-2 - Form of Commitment Increase Supplement
K - Form of Lessor's Estoppel Agreement
SCHEDULES
1 - Lenders and Commitments
6.1(a) - Jurisdictions
6.1(b) - Subsidiaries; Capitalization
6.1(h) - Employee Benefit Plans
6.1(l) - Material Contracts
6.1(q) - Liens
6.1(r) - Debt and Contingent Obligations
6.1(s) - Litigation
8.10(b) - Unencumbered Pool (List of Properties and Property Value
of Each)
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AMENDED AND RESTATED CREDIT AGREEMENT
AMENDED AND RESTATED CREDIT AGREEMENT, dated as of the 31st day of March,
1999, by and among (i) GOLF TRUST OF AMERICA, L.P., a limited partnership formed
under the laws of Delaware (the "Borrower"), (ii) the Guarantors who are or may
become a party to this Agreement, (iii) the Lenders who are or may become a
party to this Agreement, (iv) NATIONSBANK, N.A. ("NationsBank"), as
Administrative Agent for the Lenders, (v) FIRST UNION NATIONAL BANK, as
Syndication Agent and (vi) BANKBOSTON, N.A., as Documentation Agent.
STATEMENT OF PURPOSE
Pursuant to a Credit Agreement, dated as of February 27, 1998 (as amended
and restated, the "Original Credit Agreement"), among the Borrower, the
Guarantors, the Lenders party thereto (collectively, the "Original Lenders") and
NationsBank, as Administrative Agent and Bank of America National Trust and
Savings Association ("BofA"), as Documentation Agent, the Original Lenders
extended certain credit facilities to the Borrower.
The Guarantors and the Borrower have requested, and the Lenders have
agreed, to amend and restate the provisions of the Original Credit Agreement on
the terms and conditions of this Agreement. All extensions of credit to the
Borrower will inure to the benefit of the Guarantors, directly or indirectly.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, such parties
hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1 DEFINITIONS. The following terms when used in this
Agreement shall have the meanings assigned to them below:
"ADJUSTED EURODOLLAR RATE" means, with respect to any Eurodollar Loan, for
any Interest Period, the rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) mathematically determined by the Administrative Agent to be
equal to the quotient obtained by dividing (a) the Eurodollar Rate for such
Interest Period by (b) 1 MINUS the Reserve Requirement for such Interest Period.
"ADJUSTED NOI [EBITDA]" means with respect to any Eligible Property or
prospective Eligible Property, at any date of determination, the "Adjusted NOI
[EBITDA]" for such Eligible Property for the twelve month period ending on or
immediately prior to such date of determination, as set forth in the Borrower's
Form K-1 with respect to such Eligible Property
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(which shall also equal the annual lease payment payable to the applicable
Credit Party under the related Participating Lease, exclusive of the applicable
capital expenditure reserve), subject to such adjustments as deemed reasonably
appropriate by the Administrative Agent in its sole discretion.
"ADMINISTRATIVE AGENT" means NationsBank in its capacity as the
Administrative Agent under this Agreement, and any successor thereto appointed
pursuant to Section 12.7.
"ADMINISTRATIVE AGENT'S OFFICE" means the office of the Administrative
Agent specified in or determined in accordance with the provisions of Section
13.1.
"AFFILIATE" means, with respect to any Person, any other Person (other
than a Subsidiary) which directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
such first Person or any of its Subsidiaries. The term "control" means (a) the
lawful power to vote five percent (5%) or more of the securities or other equity
interests of a Person having ordinary voting power, or (b) the possession,
directly or indirectly, of any other lawful power to direct or cause the
direction of the management and policies of a Person, whether through ownership
of voting securities, by contract or otherwise.
"AGENTS" means the collective reference to the Administrative Agent, the
Documentation Agent and the Syndication Agent.
"AGGREGATE COMMITMENT" means the aggregate amount of the Lenders'
Commitments under this Agreement, as such amount may be increased, reduced or
modified at any time or from time to time pursuant to the terms of this
Agreement. On the Closing Date, the Aggregate Commitment shall be Two Hundred
Million Dollars ($200,000,000).
"AGREEMENT" means this Amended and Restated Credit Agreement, as amended
or modified from time to time.
"APPLICABLE LAW" means all applicable provisions of constitutions,
statutes, laws, rules, treaties, regulations and orders of all Governmental
Authorities and all orders and decrees of all courts and arbitrators.
"APPLICABLE LENDING OFFICE" means, for each Lender, the "Lending Office"
this Agreement or such other office of such Lender (or an Affiliate of such
Lender) as such Lender may from time to time specify to the Administrative Agent
and the Borrower by written notice in accordance with the terms of this
Agreement as the office by which its Loans are to be made and maintained.
"APPLICABLE MARGIN" has the meaning assigned thereto in Section
3.1(b).
"APPLICATION" means an application, in the form specified by the Issuing
Lender from time to time, requesting the Issuing Lender to issue a Letter of
Credit.
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"ASSIGNMENT AND ACCEPTANCE" has the meaning assigned thereto in
Section 13.10 of this Agreement.
"AVAILABLE COMMITMENT" means, as to any Lender at any time, an amount
equal to the excess, if any, of (a) such Lender's Commitment over (b) such
Lender's Extensions of Credit.
"BASE RATE" means, at any time, the higher of (a) the rate per annum equal
to the rate announced by NationsBank as its "prime rate" or (b) the Federal
Funds Rate plus 0.5% for such day. Any change in the Base Rate due to a change
in the prime rate shall be effective on the effective date of such change in the
prime rate.
"BASE RATE LOAN" means any Loan that bears interest at the Base Rate.
"BORROWER" means Golf Trust of America, L.P.
"BRIDGE FACILITY" shall have the meaning given to such term in Section
2.3(d).
"BUSINESS DAY" means (a) for all purposes other than as set forth in
clause (b) immediately below, any day other than a Saturday, Sunday or legal
holiday on which banks in Charlotte, North Carolina and New York, New York, are
open for the conduct of their commercial banking business, and (b) with respect
to all notices and determinations in connection with, and payments of principal
and interest on, any Loan, any day that is a Business Day described in clause
(a) and that is also a day for trading by and between banks in Dollar deposits
in the London interbank market.
"CAPITAL LEASE" means, with respect to any Person, any lease of any
property that is, in accordance with GAAP, classified and accounted for as a
capital lease on a Consolidated balance sheet of such Person.
"CLOSING DATE" means the date of this Agreement.
"CODE" means the Internal Revenue Code of 1986, and the rules and
regulations thereunder, each as amended or supplemented from time to time.
"COMMITMENT" means, as to any Lender, the obligation of such Lender to
make Loans to or to participate in Letters of Credit for the benefit of the
Borrower under this Agreement in an aggregate principal amount at any time
outstanding not to exceed the amount set forth opposite such Lender's name on
SCHEDULE 1 to this Agreement, or as set forth in any Assignment and Acceptance
relating to any assignment that has become effective pursuant to Section 13.10,
as the same may be reduced or modified at any time or from time to time pursuant
to the terms of this Agreement.
"COMMITMENT PERCENTAGE" means, as to any Lender at any time, the ratio of
(a) the amount of the Commitment of such Lender to (b) the Aggregate Commitment.
3
"CONSOLIDATED" means, when used with reference to financial statements or
financial statement items of the Credit Parties, such statements or items on a
consolidated basis in accordance with applicable principles of consolidation
under GAAP.
"CONTINGENT OBLIGATION" means, with respect to any Credit Party, without
duplication, any obligation, contingent or otherwise, of such Person pursuant to
which such Person has directly or indirectly guaranteed any Debt or other
obligation of any other Person and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of such
first Person (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Debt or other obligation (whether arising by virtue of
partnership arrangements, by agreement to keep well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
condition or otherwise) or (b) entered into for the purpose of assuring in any
other manner the obligee of such Debt or other obligation of the payment thereof
or to protect such obligee against loss in respect thereof (in whole or in
part); PROVIDED, that the term Contingent Obligation shall not include
endorsements for collection or deposit in the ordinary course of business.
"CONVERT," "CONVERSION," and "CONVERTED" shall refer to a conversion
pursuant to Section 3.2, 3.9 or 3.11 of a Eurodollar Loan into a Base Rate Loan
or vice versa.
"CREDIT FACILITY" means the revolving credit facility established pursuant
to Article II.
"CREDIT PARTIES" means, collectively, the Borrower and the Guarantors.
Notwithstanding Section 8.12, if GTA hereafter creates or acquires any
Subsidiary and the Required Lenders elect not to require such Subsidiary to
become a Guarantor, such Subsidiary shall nonetheless be deemed to be a Credit
Party for purposes of this Agreement.
"DATE OF DETERMINATION" means the effective date on which the purchase
price for any Eligible Property is determined by the Borrower.
"DEBT" means, with respect to the Credit Parties at any date and without
duplication, the sum of the following calculated in accordance with GAAP: (a)
all liabilities, obligations and indebtedness including, but not limited to,
obligations evidenced by bonds, debentures, notes or other similar instruments
of any such Person; (b) all obligations to pay the deferred purchase price of
property or services of any such Person, except trade payables arising in the
ordinary course of business not more than one hundred and twenty (120) days past
due; (c) all obligations of any such Person as lessee under Capital Leases; (d)
all Contingent Obligations of any such Person; (e) all obligations, contingent
or otherwise, of any such Person relative to the face amount of letters of
credit, whether or not drawn, and banker's acceptances issued for the account of
any such Person; and (f) all obligations incurred by any such Person pursuant to
Hedging Agreements.
"DEBT SERVICE" means, for any fiscal quarter, (a) Interest Expense of the
Credit Parties for such quarter PLUS (b) all principal payments of Debt of the
Credit Parties scheduled to be made during such quarter.
4
"DEFAULT" means any of the events specified in Section 11.1 which, with
the passage of time, the giving of notice or any other condition, would
constitute an Event of Default.
"DEFAULTING LENDER" has the meaning assigned thereto in Section 3.6.
"DOCUMENTATION AGENT" means BankBoston, N.A., in its capacity as the
Documentation Agent under this Agreement and any successor thereto appointed
pursuant to Section 12.8.
"DOLLARS" OR "$" means, unless otherwise qualified, lawful currency of the
United States.
"EBITDA" means, with respect to any Person for any period, (a) Net Income
of such Person for such period, excluding any extraordinary gains or other
non-recurring gains or non-cash losses occurring outside the ordinary course of
business including any gains or non-cash losses from the sale or other
disposition of assets other than in the ordinary course of business, PLUS (b)
the sum of the following for such period to the extent properly deducted in the
determination of Net Income: (i) Interest Expense of such Person; (ii) income
and franchise taxes of such Person; and (iii) amortization, depreciation and
other non-cash charges (including amortization of good will and other intangible
assets) of such Person, MINUS (c) to the extent included in the determination of
Net Income (x) payments under any Participating Lease (or any mortgage or
promissory note) with respect to which, at the time of determination of EBITDA,
any payment is more than thirty (30) days past due, and (y) that portion of any
payment under (i) any Participating Lease accrued to the Capital Replacement
Fund (as defined under such Participating Lease) or (ii) the Innisbrook Loan
Agreement accrued to the Capital Replacement Reserve (as defined in the
Innisbrook Loan Agreement).
"ELIGIBLE ASSIGNEE" means (i) a Lender, (ii) an Affiliate of a Lender,
(iii) a financial institution, institutional lender or other entity that is an
"accredited investor" (as defined in Rule 501 under the Securities Act of 1933,
as amended) having (A) total assets of at least $10,000,000,000, (B) a long-term
unsecured debt rating of at least BBB by S&P (or an equivalent rating by another
nationally recognized statistical ratings organization) and (C) an office in the
United States, and (iv) any other Person approved by the Administrative Agent
and, unless an Event of Default has occurred and is continuing at the time any
assignment is effected in accordance with Section 13.10, the Borrower, such
approval not to be unreasonably withheld or delayed by the Borrower and such
approval to be deemed given by the Borrower if no objection is received by the
assigning Lender and the Administrative Agent from the Borrower within two
Business Days after written notice of such proposed assignment has been provided
by the assigning Lender to the Borrower; PROVIDED, HOWEVER, that neither the
Borrower nor an Affiliate of the Borrower shall qualify as an Eligible Assignee.
"ELIGIBLE PROPERTIES" means (i) the Innisbrook Assets, (ii) the Legends of
Virginia Golf Courses and (iii) those certain golf course properties now or
hereafter owned by the Credit Parties which the Administrative Agent deems to
have satisfied each of the following conditions:
(a) Such property is (i) wholly-owned by a Credit Party in fee simple or
(ii) subject to a Qualified Ground Lease exclusively in favor of a Credit Party.
5
(b) Such property is not subject to (i) any Lien, except Liens permitted
under Section 10.3(a) through (e), inclusive, or (ii) a negative pledge or other
restriction on Liens.
(c) All improvements (including the golf course) to be built on such
property have been substantially completed and the golf course has been in
operation for at least one year.
(d) Such property is located in the United States.
(e) The Borrower shall have delivered to the Administrative Agent all
material financial information used by the Borrower in establishing the purchase
price of the property, including, without limitation, all third party reports,
if any, and the Form K-1 report, substantially in the form of EXHIBIT I hereto,
with respect to such property and operating history for the golf course for a
minimum of twelve (12) months immediately preceding the Date of Determination,
together with the following:
(i) With respect to any property for which the Purchase Price is
less than $10,000,000, a copy of the federal tax return filed by the owner
and operator of such golf course property or, if available to the
Borrower, financial statements of the owner and operator of the golf
course property (the financial statements of the operator to be with
respect to the property only), audited, reviewed or compiled by a
certified public accounting firm reasonably acceptable to the
Administrative Agent, for the fiscal year immediately preceding the Credit
Party's acquisition of such property;
(ii) With respect to any property for which the Purchase Price is at
least $10,000,000 but less than $40,000,000, if available to the Borrower,
financial statements of the owner and operator of such golf course
property (the financial statements of the operator to be with respect to
the property only), audited or reviewed by a certified public accounting
firm reasonably acceptable to the Administrative Agent, for the fiscal
year immediately preceding the Credit Party's acquisition of such
property, and if not available, a copy of the federal tax return filed by
the owner or operator of such golf course property for the fiscal year
immediately preceding such Credit Party's acquisition of such property;
(iii) With respect to any property for which the Purchase Price is
at least $40,000,000, financial statements of the owner and operator of
such golf course property (the financial statements of the operator to be
with respect to the property only), audited by a certified public
accounting firm reasonably acceptable to the Administrative Agent for the
fiscal year immediately preceding the Credit Party's acquisition of such
property; and
(iv) In each case and to the extent available, monthly financial
statements with respect to the property for the period from the end of the
immediately preceding fiscal year-end to the date of acquisition by any
Credit Party.
(f) No more than fifty percent (50%) of (i) the number of Eligible
Properties and (ii) the Pool Value may consist of properties located (A) within
the same golf market (as
6
determined in the reasonable discretion of the Administrative Agent) and (B)
within seventy (70) miles of any other Eligible Property.
(g) The Borrower shall have delivered to the Administrative Agent a
current Phase I Environmental Site Assessment report (an "Environmental
Assessment Report") relating to each Eligible Property. Such Environmental
Assessment Report shall be addressed to the Administrative Agent on behalf of
the Lenders by a qualified environmental consultant, reasonably acceptable to
the Administrative Agent, in form and substance (including a property condition
survey) satisfactory to the Administrative Agent, indicating appropriate
inquiry into the previous ownership and use of the property, which use shall
have been consistent with good commercial practices, and indicating that there
are no material present or potential environmental problems or material hazards
on, under or about such property and confirming material compliance by the
property with all applicable environmental laws; such assessment to include at
least the following: historical research into previous ownership and uses,
comprehensive governmental records review at federal, state and local levels,
review of available aerial photographs and topographical maps, on-site visual
investigation, review of surrounding land uses, and review of operating and
housekeeping practices of any Credit Party (and previous owners) at the
property.
(h) No more than twenty percent (20%) of the Pool Value may consist of
properties subject to a Qualified Ground Lease.
(i) The Credit Party which owns the property shall have an owner's title
insurance policy, or a binding commitment for the issuance of such policy, with
respect to each property wholly owned in fee simple by such Credit Party and a
leasehold policy with respect to each property which is subject to a Qualified
Ground Lease, which policy shall insure such Credit Party's ownership of or a
valid leasehold interest in each such property, free of all Liens except Liens
permitted under Section 10.3(a) through (d), inclusive.
and (iv) with the approval of the Required Lenders, any other golf course
property now or hereafter owned by any Credit Party.
"EMPLOYEE BENEFIT PLAN" means any employee benefit plan within the meaning
of Section 3(3) of ERISA which (a) is maintained for employees of the Borrower
or any ERISA Affiliate or (b) has at any time within the preceding six years
been maintained for the employees of the Borrower or any current or former ERISA
Affiliate.
"ENVIRONMENTAL ASSESSMENT REPORT" has the meaning assigned thereto in
clause (g) of the Eligible Properties definition.
"ENVIRONMENTAL LAWS" means any and all applicable federal, state and local
laws, statutes, ordinances, rules, regulations, permits, licenses, approvals,
interpretations and orders of courts or Governmental Authorities, relating to
the protection of human health or the environment, including, but not limited
to, requirements pertaining to the manufacture, processing, distribution, use,
treatment, storage, disposal, transportation, handling, reporting, licensing,
permitting, investigation or remediation of Hazardous Materials. Environmental
Laws include, without limitation, the Comprehensive Environmental Response,
Compensation,
7
and Liability Act (42 U.S.C. Section 9601 et seq.), the Hazardous Material
Transportation Act (49 U.S.C. Section 331 et seq.), the Resource Conservation
and Recovery Act (42 U.S.C. Section 6901 et seq.), the Federal Water
Pollution Control Act (33 U.S.C. Section 1251 et seq.), the Clean Air Act (42
U.S.C. Section 7401 et seq.), the Toxic Substances Control Act (15 U.S.C.
Section 2601 et seq.), the Safe Drinking Water Act (42 U.S.C. Section 300, et
seq.), the Environmental Protection Agency's regulations relating to
underground storage tanks (40 C.F.R. Parts 280 and 281), and the rules and
regulations promulgated under each of these statutes, each as amended or
supplemented.
"ERISA" means the Employee Retirement Income Security Act of 1974, and the
rules and regulations thereunder, each as amended or modified from time to time.
"ERISA AFFILIATE" means any Person who, together with the Borrower, is
treated as a single employer within the meaning of Section 414(b), (c), (m) or
(o) of the Code or Section 4001(b) of ERISA.
"EURODOLLAR LOAN" means any Loan that bears interest at a rate based on
the Adjusted Eurodollar Rate.
"EURODOLLAR RATE" means for any Eurodollar Loan for any Interest Period,
the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
appearing on the Dow ▇▇▇▇▇ Markets screen as the London interbank offered rate
for deposits in Dollars at approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period. If for any reason such rate
is not available, the term "Eurodollar Rate" shall mean, for any Interest
Period, the rate per annum (rounded upwards, if necessary, to the nearest 1/100
of 1%) appearing on Reuters Screen LIBO Page as the London interbank offered
rate for deposits in Dollars at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period; PROVIDED, HOWEVER,
if more than one rate is specified on Reuters Screen LIBO Page, the applicable
rate shall be the arithmetic mean of all such rates (rounded upwards, if
necessary, to the nearest 1/100 of 1%).
"EVENT OF DEFAULT" means any of the events specified in Section 11.1,
provided that any requirement for passage of time, giving of notice, or any
other condition, has been satisfied.
"EXTENSIONS OF CREDIT" means, as to any Lender at any time, an amount
equal to the aggregate principal amount of all Loans made by such Lender and all
participations by such Lender in Letters of Credit then outstanding.
"FDIC" means the Federal Deposit Insurance Corporation, or any
successor thereto.
"FEDERAL FUNDS RATE" means the rate per annum (rounded upwards, if
necessary, to the next higher 1/100th of 1%) representing the daily effective
federal funds as quoted by the Administrative Agent and confirmed in Federal
Reserve Board Statistical Release H.15 (519) or any successor or substitute
publication selected by the Administrative Agent. If, for any reason, such rate
is not available, then "Federal Funds Rate" shall mean a daily rate which is
determined, in the opinion of the Administrative Agent, to be the rate at which
federal funds are being offered for sale in the national federal funds market at
9:00 a.m. (Charlotte time). Rates
8
for weekends or holidays shall be the same as the rate for the most immediate
preceding Business Day.
"FISCAL YEAR" means with respect to any Credit Party, the fiscal year of
such Credit Party ending on December 31.
"FIXED CHARGES" means, for any fiscal quarter, (a) Interest Expense of the
Credit Parties for such quarter PLUS (b) all principal payments of Debt of the
Credit Parties scheduled to be made during such quarter PLUS (c) all payments of
dividends or other distributions on preferred stock (whether in cash or in kind)
scheduled to made or accrued during such quarter.
"FUNDS FROM OPERATIONS" means, with respect to the Credit Parties on a
Consolidated basis, Net Income LESS, to the extent included in the determination
of Net Income, (a) the income (or loss) of any Person (other than a Subsidiary
of a Credit Party) in which such Credit Party has a minority ownership interest,
(b) the income (or loss) arising from the restructuring of any Debt or the
disposition of any asset (other than in the ordinary course of business) PLUS,
without duplication, real estate depreciation and amortization (but excluding
therefrom any amortization of financing costs), in each case for the Credit
Parties on a Consolidated basis for the relevant period in accordance with GAAP.
"GAAP" means generally accepted accounting principles, as recognized by
the American Institute of Certified Public Accountants and the Financial
Accounting Standards Board, consistently applied and maintained on a consistent
basis for the Credit Parties throughout the period indicated and consistent with
the prior financial practice of the Credit Parties.
"GOVERNMENTAL APPROVALS" means all required authorizations, consents,
approvals, licenses and exemptions of, registrations and filings with, and
reports to, all Governmental Authorities.
"GOVERNMENTAL AUTHORITY" means any applicable nation, province, state or
political subdivision thereof, and any government or any Person exercising
executive, legislative, regulatory or administrative functions of or pertaining
to government, and any corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.
"GROSS GOLF REVENUES" means, with respect to any operator of an Eligible
Property for any period, all revenues accrued (whether by operator or any
subtenants, assignees, concessionaires or licensees of any Credit Party) from or
by reason of the operation of the golf operations at the Eligible Property to
which such Credit Party is entitled, calculated in accordance with GAAP (but
excluding reasonable reserves for refunds, allowances and bad debts applicable
to such operations), including, without limitation, (i) revenues from membership
initiation fees, to the extent provided in the applicable Participating Lease or
other relevant governing agreement, (ii) periodic membership dues, (iii) greens
fees, (iv) fees to reserve a tee time, (v) guest fees, (vi) golf cart rentals,
(vii) parking lot fees, (viii) locker rentals, (ix) fees for golf club storage,
(x) fees for the use of swim, tennis or other facilities, (xi) charges for range
balls, range fees or other fees for golf practice facilities, (xii) fees or
other
9
charges paid for golf or tennis lessons (except where retained by or paid to
a USTA or a PGA professional in accordance with historical practice at such
Eligible Property), (xiii) fees or other charges for fitness centers, (xiv)
forfeited deposits with respect to any membership application, (xv) transfer
fees imposed on any member in connection with the transfer of any membership
interest, (xvi) fees or other charges paid to such operator by sponsors of
golf tournaments at such Eligible Property, to the extent provided in the
applicable Participating Lease or other relevant governing agreements, (xvii)
advertising or placement fees paid by vendors in exchange for exclusive use
or name rights at such Eligible Property, and (xviii) fees received in
connection with any golf package sponsored by any hotel group, condominium
group, golf association, travel agency, tourist or travel association or
similar payments; PROVIDED, HOWEVER, that Gross Golf Revenues shall not
include:
(a) Any revenue received from or by reason of such Eligible Property
relating to (i) the operation of snack bars, restaurants, bars, catering
functions and banquet operations, (ii) the sale of merchandise and inventory on
such Eligible Property, and (iii) photography services.
(b) The amount of any city, county, state or federal sales, admissions,
usage, or excise tax on any item included in Gross Golf Revenue, which is both
added to or incorporated in the selling price and paid to the taxing authority
by such operator;
(c) Revenues or proceeds from sales or trade-ins of machinery, vehicles,
trade fixtures or personal property owned by such operator used in connection
with the operation of such Eligible Property; and
(d) Any other revenues or proceeds to which the Credit Parties are not
entitled.
"GTA" means Golf Trust of America, Inc., a Maryland corporation.
"GTA GP" means GTA GP, Inc., a Maryland corporation.
"GTA LP" means GTA LP, Inc., a Maryland corporation.
"GUARANTEED OBLIGATIONS" has the meaning assigned thereto in
Section 4.1.
"GUARANTORS" means, collectively, GTA, GTA GP and GTA LP and each such
other person executing this Agreement as a Guarantor, as set forth on the
signature pages hereto, together with any Subsidiaries of GTA that become
Guarantors pursuant to Section 8.12.
"GUARANTY" means the Guarantors' obligations set forth in Article IV.
"HAZARDOUS MATERIALS" means any substances or materials (a) which are or
become defined as hazardous wastes, hazardous substances, pollutants,
contaminants, chemical substances or mixtures or toxic substances under any
applicable Environmental Law, (b) which are toxic, explosive, corrosive,
flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful
to human health or the environment and are or become regulated by any
Governmental Authority with jurisdiction, (c) the presence of which require
investigation or
10
remediation under any applicable Environmental Law or common law, (d) the
discharge or emission or release of which requires a permit or license under
any Environmental Law or other Governmental Approval, (e) which are deemed to
constitute a nuisance or a trespass or pose a health or safety hazard to
persons or neighboring properties, (f) which are materials consisting of
underground or aboveground storage tanks, whether empty, filled or partially
filled with any toxic substance, or (g) which contain, without limitation,
asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation,
petroleum hydrocarbons, petroleum derived substances or waste, crude oil,
nuclear fuel, natural gas or synthetic gas, excepting, however, any such
materials lawfully operated and/or managed pursuant to applicable
Environmental Laws.
"HEDGING AGREEMENT" means any agreement with respect to an interest rate
swap, collar, cap or floor or a forward rate agreement or other agreement
regarding the hedging of interest rate risk exposure executed in connection with
hedging the interest rate exposure of the Borrower under this Agreement, and any
confirming letter executed pursuant to such hedging agreement, all as amended,
restated or otherwise modified.
"INNISBROOK ASSETS" means all of the Borrower's right, title and interest
in and to: (a) the Promissory Note, dated June 20, 1997, made by Golf Host
Resorts, Inc. ("Golf Host") in favor of the Borrower (the "Innisbrook Note");
(b) the Loan Agreement, dated June 20, 1997, between Golf Host and the Borrower,
as amended by that certain First Amendment dated as of October 1, 1998 (the
"Innisbrook Loan Agreement"); (c) the Mortgage, Security Agreement and Fixture
Filing, dated as of June 20, 1997, between Golf Host and the Borrower (the
"Innisbrook Mortgage"); and (d) each other document executed in connection with
the transactions contemplated by the Innisbrook Loan Agreement, all as amended,
restated or supplemented from time to time.
"INTEREST EXPENSE" means, with respect to any Person for any period, the
gross interest expense (including, without limitation, capitalized interest and
interest expense attributable to Capital Leases) of such Person, all determined
for such period on a Consolidated basis in accordance with GAAP.
"INTEREST PERIOD" means each period of thirty (30) days with respect to
which the Eurodollar Rate shall be determined under this Agreement; PROVIDED
that:
(a) each Interest Period shall commence on the date of advance of or
Conversion to any Eurodollar Loan and, in the case of immediately successive
Interest Periods, each successive Interest Period shall commence on the date on
which the next preceding Interest Period expires;
(b) if any 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; PROVIDED, 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, such Interest Period shall expire on the next
preceding Business Day;
11
(c) 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 the relevant calendar month at the end of such Interest Period;
(d) no Interest Period shall be permitted to extend beyond the Termination
Date; and
(e) there shall be no more than seven (7) Interest Periods outstanding at
any time.
"ISSUING LENDER" means NationsBank in its capacity as issuer of any Letter
of Credit, or any successor thereto.
"L/C COMMITMENT" means Ten Million Dollars ($10,000,000).
"L/C FACILITY" means the letter of credit facility established pursuant to
Article IIA.
"L/C PARTICIPANTS" means, collectively, all Lenders other than the
Issuing Lender.
"LEGENDS OF MYRTLE BEACH GOLF COURSES" means Heathland, Moorland and
Parkland.
"LEGENDS OF VIRGINIA GOLF COURSES" means Stonehouse Golf Club and
Royal New Kent.
"LENDER" means each Person executing this Agreement as a Lender set forth
on the signature pages hereto and each Person that hereafter becomes a party to
this Agreement as a Lender pursuant to Section 13.10.
"LENDING OFFICE" means, with respect to any Lender, the office of such
Lender maintaining such Lender's Commitment Percentage of the Loans.
"LESSEE" means the operator of a golf course property under a
Participating Lease.
"LETTER OF CREDIT OBLIGATIONS" means, at any time, an amount equal to the
sum of (a) the aggregate undrawn and unexpired amount of the then outstanding
Letters of Credit and (b) the aggregate amount of drawings under Letters of
Credit which have not then been reimbursed pursuant to Section 2A.5.
"LETTERS OF CREDIT" has the meaning assigned thereto in Section
2A.1(a).
"LEVERAGE RATIO" means the ratio of Total Liabilities to Total Assets.
"LIEN" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset.
For the purposes of this Agreement, a Person shall be deemed to own subject to a
Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, Capital Lease or other
title retention agreement relating to such asset.
12
"LOAN" means any loan made to the Borrower pursuant to Article II and all
such loans collectively as the context requires.
"LOAN DOCUMENTS" means, collectively, this Agreement, the Notes and each
other document, instrument and agreement executed and delivered by any Credit
Party or on behalf of such entity by its counsel in connection with this
Agreement or otherwise referred to in this Agreement or contemplated hereby, all
as may be amended, restated or otherwise modified.
"MATERIAL ADVERSE EFFECT" means, with respect to any Credit Party, a
material adverse effect on the properties, business, prospects, operations or
condition (financial or otherwise) of any such Person or the ability of any such
Person to perform its material obligations under the Loan Documents,
Participating Leases or Material Contracts, in each case to which it is a party,
after the applicable notice and cure periods, if any, have elapsed.
"MATERIAL CONTRACT" means (a) any contract or other agreement, written or
oral, of any Credit Party involving monetary liability of or to any such Person
in an amount in excess of $250,000 per annum, or (b) any other contract or
agreement, written or oral, of any Credit Party the failure to comply with which
could reasonably be expected to have a Material Adverse Effect.
"MOODY'S" means ▇▇▇▇▇'▇ Investors Service, Inc.
"MULTIEMPLOYER PLAN" means a "multiemployer plan" as defined in Section
4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making, or
is accruing an obligation to make, contributions within the preceding six years.
"MYRTLE BEACH GOLF COURSES" means, collectively, Heathland, Moorland,
Parkland, Heritage Golf Club and Oyster Bay.
"NATIONSBANK" means NationsBank, N.A., a national banking association,
and its successors.
"NET INCOME" means, with respect to the Credit Parties for any period, the
Consolidated net income (or loss) of the Credit Parties for such period
determined in accordance with GAAP.
"NET INCOME BEFORE COVERAGE RATIO" means with respect to any Eligible
Property or prospective Eligible Property, at any date of determination, the
"net income before coverage ratio" for such Eligible Property for the twelve
month period ending on or immediately prior to such date of determination, as
set forth in the Borrower's Form K-1 with respect to such Eligible Property and
after provision for a capital expenditure reserve of at least 3.00%, subject to
such adjustments as deemed reasonably appropriate by the Agent in its sole
discretion.
"NOTES" means the separate promissory notes made by the Borrower payable
to the order of each of the Lenders, substantially in the form of EXHIBIT A
hereto, evidencing the Credit Facility, and any amendments, modifications and
supplements thereto, any substitutes therefor, and any replacements,
restatements, renewals or extension thereof, in whole or in part; "Note" means
any of such Notes.
13
"NOTICE OF REPAYMENT" has the meaning assigned thereto in Section
2.3(c).
"NOTICE OF BORROWING" has the meaning assigned thereto in Section
2.2(a).
"OBLIGATIONS" means, in each case, whether now in existence or hereafter
arising: (a) the principal of and interest on (including interest accruing after
the filing of any bankruptcy or similar petition) the Loans; (b) the Letter of
Credit Obligations; (c) all payment and other obligations owing by the Borrower
to any Lender under any Hedging Agreement; and (d) all other fees and
commissions (including attorney's fees), charges, indebtedness, loans,
liabilities, financial accommodations, obligations, covenants and duties owing
by the Borrower to the Lenders or the Agent, of every kind, nature and
description, direct or indirect, absolute or contingent, due or to become due,
contractual or tortious, liquidated or unliquidated, and whether or not
evidenced by any note, and whether or not for the payment of money under or in
respect of this Agreement, any Note or any of the other Loan Documents.
"OFFICER'S COMPLIANCE CERTIFICATE" has the meaning assigned thereto
in Section 7.2.
"ORIGINAL CREDIT AGREEMENT" has the meaning assigned thereto in the
Statement of Purpose.
"OTHER TAXES" has the meaning assigned thereto in Section 3.13(b).
"PARTICIPATING LEASE" means each Lease between any Credit Party, as lessor
and the operator of a golf course property, as the lessee.
"PBGC" means the Pension Benefit Guaranty Corporation or any successor
agency.
"PENSION PLAN" means any Employee Benefit Plan, other than a Multiemployer
Plan, which is subject to the provisions of Title IV of ERISA or Section 412 of
the Code and which (a) is maintained for employees of the Borrower or any ERISA
Affiliates or (b) has at any time within the preceding six years been maintained
for the employees of the Borrower or any of their current or former ERISA
Affiliates.
"PERMITTED LIENS" means any Liens permitted under Section 10.3.
"PERSON" means an individual, corporation, partnership, association,
trust, business trust, joint venture, joint stock company, pool, syndicate, sole
proprietorship, unincorporated organization, Governmental Authority or any other
form of entity or group thereof.
"POOL VALUATION CERTIFICATE" means the Pool Value report to be delivered
by the Borrower, substantially in the form of EXHIBIT H.
"POOL VALUE" means the aggregate Property Value of all Eligible Properties
in the Unencumbered Pool.
14
"PRIME RATE" means, at any time, the rate of interest per annum publicly
announced from time to time by NationsBank as its prime rate. Each change in the
Prime Rate shall be effective as of the opening of business on the day such
change in the Prime Rate occurs. The parties hereto acknowledge that the rate
announced publicly by NationsBank as its Prime Rate is an index or base rate and
shall not necessarily be its lowest or best rate charged to its customers or
other banks.
"PROPERTY VALUE" means the value of each Eligible Property determined in
accordance with Section 8.10(b).
"PURCHASE PRICE," with respect to any golf course property, means the
purchase price paid by any Credit Party, including all assumption of debt and
other consideration, for such golf course property.
"QUALIFIED GROUND LEASE" means (i) the Oyster Bay lease and (ii) any other
lease (a) which is a direct ground lease (or indirect ground lease, so long as
each ground lease in the chain of title meets the following criteria) granted by
the fee owner of real property, (b) which may be transferred and/or assigned
without the consent of the lessor (or as to which the lease expressly provides
that (i) such lease may be transferred and/or assigned with the consent of the
lessor and (ii) such consent shall not be unreasonably withheld or delayed), (c)
which has a remaining term (including any renewal terms exercisable at the sole
option of the lessee) of at least 25 years, (d) under which no material default
has occurred and is continuing, (e) with respect to which a security interest
may be granted without the consent of the lessor, and (f) which contains lender
protection provisions reasonably acceptable to the Administrative Agent
including, without limitation, provisions to the effect that (A) the lessor
shall notify the Administrative Agent of the occurrence of any default by the
lessee under such lease and shall afford the Administrative Agent the right to
cure such default, and (B) in the event that such lease is terminated, the
Administrative Agent shall have the option to enter into a new lease having
terms substantially identical to those contained in the terminated lease. Upon
the submission to the Administrative Agent of a written request for approval of
the lender protection provisions and other terms of a proposed Qualified Ground
Lease, the Administrative Agent may waive any non-compliances with the foregoing
which it considers in its reasonable judgment not to be material and adverse
with respect to the eligibility of the golf course property subject to the
Qualified Ground Lease, and shall use its best effort to accept or reject such
proposal within five (5) Business Days, and shall accept or reject such proposal
within ten (10) Business Days, in each case following receipt of such request.
"REGISTER" has the meaning assigned thereto in Section 13.10(b).
"REQUIRED LENDERS" means, at any date, any combination of holders other
than Defaulting Lenders of at least sixty-six and two-thirds percent (66-2/3%)
of the aggregate unpaid principal amount of the Notes exclusive of Notes held by
Defaulting Lenders, or if no amounts are outstanding under the Notes, any
combination of Lenders other than Defaulting Lenders whose Commitment
Percentages would aggregate at least sixty-six and two-thirds percent (66-2/3%)
if the Commitments of each Defaulting Lender were excluded from the Aggregate
Commitment.
15
"REIMBURSEMENT OBLIGATION" means the obligation of the Borrower to
reimburse the Issuing Lender pursuant to Section 2A.5 for amounts drawn under
Letters of Credit.
"RESERVE REQUIREMENT" means, at any time, the maximum rate at which
reserves (including, without limitation, any marginal, special, supplemental, or
emergency reserves) are required to be maintained under regulations issued from
time to time by the Board of Governors of the Federal Reserve System (or any
successor) by member banks of the Federal Reserve System against "Eurocurrency
liabilities" (as such term is used in Regulation D). Without limiting the effect
of the foregoing, the 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 Adjusted
Eurodollar Rate is to be determined, or (ii) any category of extensions of
credit or other assets which include Eurodollar Loans. The Adjusted Eurodollar
Rate shall be adjusted automatically on and as of the effective date of any
change in the Reserve Requirement.
"SEASONED ELIGIBLE PROPERTY" means any Eligible Property (a) that has been
owned by any Credit Party for at least twelve months or (b) with respect to
Eligible Properties owned less than twelve months, for which at least twelve
months of historical financial statements are available in form and substance
reasonably acceptable to the Agent.
"S&P" means Standard and Poors Ratings Group.
"SOLVENT" means, as to the Credit Parties on a particular date, that any
such Person (a) has capital sufficient to carry on its business and transactions
and all business and transactions in which it is about to engage and is able to
pay its debts as they mature, (b) owns property having a value, both at fair
valuation and at present fair saleable value, greater than the amount required
to pay its probable liabilities (including contingencies), and (c) does not
believe that it will incur debts or liabilities beyond its ability to pay such
debts or liabilities as they mature.
"STOCK" means all shares, options, interests or other equivalents
(howsoever designated) of or in a corporation, whether voting or nonvoting,
including, without limitation, common stock, warrants, preferred stock,
convertible debentures and all agreements, instruments and documents
convertible, in whole or in part, into any one or more or all of the foregoing.
"SUBORDINATED DEBT" means all Debt of any Credit Party subordinated in
right and time of payment to the Obligations on terms satisfactory to the
Administrative Agent and Required Lenders.
"SUBSIDIARY" means, as to any Person, any corporation, partnership or
other entity of which more than fifty percent (50%) of the outstanding capital
stock or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other managers of such corporation,
partnership or other entity is at the time, directly or indirectly, owned by or
the management is otherwise controlled by such Person (irrespective of whether,
at the time, capital stock of any other class or classes of such corporation
shall have or might have voting power by reason of the happening of any
contingency). Unless otherwise qualified, references to "Subsidiary" or
"Subsidiaries" in this Agreement shall refer to those of GTA.
16
"SYNDICATION AGENT" means First Union National Bank, in its capacity as
the Syndication Agent under this Agreement and any successor thereto appointed
pursuant to Section 12.8.
"TANGIBLE NET WORTH" means, as of any date, Total Assets (but excluding
therefrom capitalized interest, debt discount and expense, goodwill, patents,
trademarks, copyrights, franchises, licenses, amounts due from officers,
directors, stockholders and Affiliates and any other items which would be
treated as intangibles under GAAP), LESS Total Liabilities.
"TAXES" has the meaning assigned thereto in Section 3.13(a).
"TERMINATION DATE" means the earliest of the dates referred to in
Section 2.5.
"TERMINATION EVENT" means: (a) a "Reportable Event" described in Section
4043 of ERISA; or (b) the withdrawal of the Borrower or any ERISA Affiliate from
a Pension Plan during a plan year in which it was a "substantial employer" as
defined in Section 4001(a)(2) of ERISA; or (c) the termination of a Pension
Plan, the filing of a notice of intent to terminate a Pension Plan or the
treatment of a Pension Plan amendment as a termination under Section 4041 of
ERISA; or (d) the institution of proceedings to terminate, or the appointment of
a trustee with respect to, any Pension Plan by the PBGC; or (e) any other event
or condition which would constitute grounds under Section 4042(a) of ERISA for
the termination of, or the appointment of a trustee to administer, any Pension
Plan; or (f) the partial or complete withdrawal of the Borrower or any ERISA
Affiliate from a Multiemployer Plan; or (g) the imposition of a Lien pursuant to
Section 412 of the Code or Section 302 of ERISA; or (h) any event or condition
which results in the reorganization or insolvency of a Multiemployer Plan under
Section 4241 or 4245 of ERISA; or (i) any event or condition which results in
the termination of a Multiemployer Plan under Section 4041A of ERISA or the
institution by PBGC of proceedings to terminate a Multiemployer Plan under
Section 4042 of ERISA.
"TOTAL ASSETS" means, as of any date, the aggregate amount of (a) all
assets which would be reflected on a Consolidated balance sheet of the Credit
Parties prepared in accordance with GAAP PLUS (b) accumulated depreciation in
accordance with GAAP PLUS (c) an amount equal to $51,403,099, the difference
between (x) the total consideration paid for The Heritage Golf Club, The Legends
Golf Club and Oyster Bay Golf Club and (y) the aggregate book value of such golf
course properties as shown on the Consolidated balance sheet of the Credit
Parties due to downward adjustments required by ▇▇▇ ▇▇. ▇▇.
"TOTAL LIABILITIES" means, as of any date, the sum of (i) the aggregate
amount of all liabilities which would be reflected on a Consolidated balance
sheet of the Credit Parties prepared in accordance with GAAP and (ii) the
aggregate amount of all Contingent Obligations of the Credit Parties.
"UCC" means the Uniform Commercial Code as in effect in the State of
North Carolina.
17
"UCP" means the Uniform Customs and Practice for Documentary Credits
(1993 Revision), International Chamber of Commerce Publication No. 500.
"UNENCUMBERED POOL" has the meaning assigned thereto in Section 8.10.
"UNITED STATES" means the United States of America.
SECTION 1.2 GENERAL. Unless otherwise specified, a reference in this
Agreement to a particular section, subsection, Schedule or Exhibit is a
reference to that section, subsection, Schedule or Exhibit of this Agreement.
Wherever from the context it appears appropriate, each term stated in either the
singular or plural shall include the singular and plural, and pronouns stated in
the masculine, feminine or neuter gender shall include the masculine, the
feminine and the neuter. Any reference in this Agreement to "Charlotte time"
shall refer to the applicable time of day in Charlotte, North Carolina.
SECTION 1.3 OTHER DEFINITIONS AND PROVISIONS.
(a) USE OF CAPITALIZED TERMS. Unless otherwise defined therein, all
capitalized terms defined in this Agreement shall have the defined meanings when
used in this Agreement, the Notes and the other Loan Documents or any
certificate, report or other document made or delivered pursuant to this
Agreement.
(b) MISCELLANEOUS. The words "hereof", "herein" and "hereunder" and words
of similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement.
ARTICLE II
REVOLVING CREDIT FACILITY
SECTION 2.1 LOANS. Subject to the terms and conditions of this
Agreement, each Lender severally agrees to make Loans to the Borrower from
time to time from the Closing Date through, but not including, the
Termination Date as requested by the Borrower in accordance with the terms of
Section 2.2; PROVIDED, that (a) the aggregate principal amount of all
outstanding Loans (after giving effect to any amount requested) and Letter of
Credit Obligations shall not exceed the Aggregate Commitment, (b) the
principal amount of outstanding Loans from any Lender to the Borrower PLUS
such Lender's Commitment Percentage of the Letter of Credit Obligations then
outstanding shall not at any time exceed such Lender's Commitment and (c) the
Pool Value shall at all times be at least 1.75 times the aggregate amount of
all unsecured Debt of the Credit Parties (including the outstanding
Obligations). Each Loan by a Lender shall be in a principal amount equal to
such Lender's Commitment Percentage of the aggregate principal amount of
Loans requested on such occasion. Subject to the terms and conditions of this
Agreement, the Borrower may borrow, repay and reborrow Loans under this
Agreement until the Termination Date.
18
SECTION 2.2 PROCEDURE FOR ADVANCES OF LOANS.
(a) REQUESTS FOR BORROWING. The Borrower shall give the Administrative
Agent irrevocable prior written notice in the form attached hereto as EXHIBIT B
(a "Notice of Borrowing") not later than 11:00 a.m. (Charlotte time) (i) at
least two (2) Business Days before each Base Rate Loan and (ii) at least three
(3) Business Days before each Eurodollar Loan, of its intention to borrow,
specifying (A) the date of such borrowing, which shall be a Business Day, (B)
the amount of such borrowing, which shall be in an aggregate principal amount of
$500,000 or a whole multiple of $100,000 in excess thereof, and (C) whether such
Loan is to be a Eurodollar Loan or a Base Rate Loan. Notices received after
11:00 a.m. (Charlotte time) shall be deemed received on the next Business Day.
The Administrative Agent shall promptly notify the Lenders of each Notice of
Borrowing.
(b) DISBURSEMENT OF LOANS. Not later than 2:00 p.m. (Charlotte time) on
the proposed borrowing date, each Lender will make available to the
Administrative Agent, for the account of the Borrower, at the office of the
Administrative Agent in funds immediately available to the Administrative Agent,
such Lender's Commitment Percentage of the Loans to be made on such borrowing
date. The Borrower hereby irrevocably authorizes the Administrative Agent to
disburse the proceeds of each borrowing requested pursuant to this Section 2.2
in immediately available funds by crediting such proceeds to a deposit account
of the Borrower maintained with the Administrative Agent or by wire transfer to
such account as may be agreed upon by the Borrower and the Administrative Agent
from time to time. Unless the Administrative Agent shall have received notice
from a Lender that such Lender will not make available to the Administrative
Agent such Lender's Commitment Percentage of the requested Loan, the
Administrative Agent shall disburse such Lender's Commitment Percentage of the
Loans.
SECTION 2.3 REPAYMENT OF LOANS.
(a) REPAYMENT ON TERMINATION DATE. The Borrower shall repay the
outstanding principal amount of all Loans in full, together with all accrued but
unpaid interest thereon, on the Termination Date.
(b) MANDATORY REPAYMENTS.
(i) If at any time the outstanding principal amount of all Loans
plus the Letter of Credit Obligations exceeds the Aggregate Commitment or
the Pool Value is less than 1.75 times the aggregate amount of all
unsecured Debt of the Credit Parties (including the amount of the
outstanding Obligations), the Borrower shall repay immediately upon
written notice from the Administrative Agent, by payment to the
Administrative Agent for the account of the Lenders, the Loans in an
amount necessary to bring the Borrower into compliance.
(ii) The Loans shall also be prepaid by any amount required to be
paid under Section 10.6 of this Agreement.
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(iii) Each such repayment under this Section 2.3(b) shall be (i)
accompanied by any amount required to be paid pursuant to Section 3.12 of
this Agreement, together with interest accrued thereon to the date of
repayment and (ii) applied FIRST to the outstanding Base Rate Loans up to
the full amount thereof and SECOND to the outstanding Eurodollar Loans up
to the full amount thereof.
(c) OPTIONAL REPAYMENTS. The Borrower may, subject to Section 2.3(d), at
any time and from time to time repay the Loans, in whole or in part, by giving
the Administrative Agent irrevocable notice in the form attached hereto as
EXHIBIT C (a "Notice of Repayment") not later than 11:00 a.m. (Charlotte time)
at least three (3) Business Days before each prepayment of a Loan specifying the
date and amount of repayment, PROVIDED, HOWEVER, that the Borrower may not repay
any Eurodollar Loan on any day other than the last day of the Interest Period
applicable thereto unless such payment is accompanied by any amount required to
be paid pursuant to Section 3.12 of this Agreement. Upon receipt of such notice,
the Administrative Agent shall promptly notify each Lender. If any such notice
is given, the amount specified in such notice shall be due and payable on the
date set forth in such notice. Partial repayments shall be in an aggregate
amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each such
repayment shall be accompanied by any amount required to be paid pursuant to
Section 3.12 of this Agreement.
(d) RESTRICTION ON REPAYMENTS. The Loans may not be voluntarily repaid
prior to the repayment in full of any loans outstanding under the Credit
Agreement dated as of March 31, 1999 between the Borrower, the Guarantors and
NationsBank, as lender (the "Bridge Facility"). Upon the occurrence and during
the continuance of an Event of Default, this Section 2.3(d) shall not be
applicable and the Obligations of the Borrower under this Agreement and the
obligations of the Borrower under the Bridge Facility shall be PARI PASSU.
SECTION 2.4 NOTES. Each Lender's Loans and the obligation of the
Borrower to repay such Loans shall be evidenced by a Note executed by the
Borrower payable to the order of such Lender representing the Borrower's
obligation to pay such Lender's Commitment or, if less, the aggregate unpaid
principal amount of all Loans made and to be made by such Lender to the
Borrower under this Agreement, PLUS interest and all other fees, charges and
other amounts due thereon as required under this Agreement. Each Note shall
bear interest on the unpaid principal amount thereof at the applicable
interest rate per annum specified in Section 3.1.
SECTION 2.5 TERMINATION OF CREDIT FACILITY. The Credit Facility shall
terminate on the earlier of (a) the third anniversary of the Closing Date,
and (b) the date of termination by the Administrative Agent on behalf of the
Lenders pursuant to Section 11.2(a).
SECTION 2.6 INCREASES IN CREDIT FACILITY. The Borrower shall have the
right, on ten (10) Business Days' prior written notice to the Administrative
Agent (a copy of which shall be furnished to the Lenders by the
Administrative Agent), so long as no Default or Event of Default shall have
occurred and be continuing, at any time and from time to time prior to the
first anniversary of the Closing Date, to increase the total amount of the
Aggregate Commitment by (a) accepting the offer or offers of any Person or
Persons (not then a Lender) with the consent of the Administrative Agent
constituting an Eligible Assignee to become a new Lender hereto with a
20
Commitment up to the amount of any such increase and/or (b) accepting the
offer of any existing Lender or Lenders to increase its (or their) Commitment
up to the amount of any such increase; PROVIDED, HOWEVER, that (i) in no
event shall any Lender's Commitment be increased without the consent of such
Lender, (ii) if any Loans are outstanding hereunder on the date that any such
increase is to become effective, the Administrative Agent and Lenders shall
make such transfers of funds as are necessary in order that the outstanding
balance of such Loans reflect the Commitment Percentages of the Lenders after
giving effect to any increase pursuant to this Section 2.6 (iii) each such
increase shall be in minimum amounts of at least Five Million Dollars
($5,000,000), and (iv) in no event shall any such increase result in the
amount of the Aggregate Commitment exceeding Two Hundred Twenty-five Million
Dollars ($225,000,000). Any increase to the Commitment pursuant to clause (a)
of the first sentence of this Section 2.6 shall become effective upon the
execution of a supplement in the form of EXHIBIT J-1 hereto (a "New Lender
Supplement") by the Borrower, Administrative Agent and the applicable new
Lender or Lenders together with a corresponding Note, and any increase to the
Commitment pursuant to clause (b) of the first sentence of this Section 2.6
shall become effective upon the execution of a supplement in the form of
EXHIBIT J-2 hereto (a "Commitment Increase Supplement"), executed by the
Borrower, the Administrative Agent and the applicable increasing Lender or
Lenders, together with a replacement Note. The Administrative Agent shall
forward copies of any such supplement to the Lenders and Credit Parties
promptly upon receipt thereof. Increases in the Aggregate Commitment shall
permanently reduce the committed amount under the Bridge Facility.
SECTION 2.7 USE OF PROCEEDS. The Borrower shall use the proceeds of the
Loans and the Letters of Credit (a) first, to pay in full the existing Debt
under the Original Credit Agreement, (b) then to repay the existing Debt under
the Credit Agreement dated as of July 9, 1998 between the Borrower, certain of
the Guarantors, NationsBank as Administrative Agent and Lender, and Bank of
America as Documentation Agent and Lender, and (c) then to finance the purchase
of golf courses; PROVIDED that up to 20% of the Aggregate Commitment may be used
for working capital and general corporate requirements of the Borrower,
including, without limitation, the payment of certain fees and expenses incurred
in connection with this transaction.
ARTICLE IIA
LETTER OF CREDIT FACILITY
SECTION 2A.1 COMMITMENT. Subject to the terms and conditions hereof,
the Issuing Lender, in reliance on the agreements of the other Lenders set
forth in Section 2A.4(a), agrees to issue standby letters of credit ("Letters
of Credit") for the account of the Borrower on any Business Day from the
Closing Date through, but not including, the date which is sixty (60) days
prior to the Termination Date in such form as may be approved from time to
time by the Issuing Lender; PROVIDED, that the Issuing Lender shall have no
obligation to (and shall not, without the prior consent of all of the
Lenders) issue any Letter of Credit if, after giving effect to such issuance,
(a) the Letter of Credit Obligations would exceed the L/C Commitment or (b)
the sum of the aggregate principal amount of all outstanding Loans and Letter
of Credit Obligations would exceed the Aggregate Commitment or (c) the Pool
Value is less than 1.75 times the aggregate amount of all unsecured Debt of
the Credit Parties (including the amount of
21
the outstanding Obligations). Each Letter of Credit shall (i) be denominated
in Dollars, (ii) be a standby letter of credit issued to support obligations
of the Borrower, contingent or otherwise, incurred in the ordinary course of
business, (iii) expire on a date not more than one year later in the case of
a standby letter of credit but in no event later than the Termination Date,
and (iv) be subject to the UCP and, to the extent not inconsistent therewith,
the laws of the State of North Carolina. The Issuing Lender shall not issue
any Letter of Credit hereunder if such issuance would conflict with, or cause
the Issuing Lender or any L/C Participant to exceed any limits imposed by,
any Applicable Law. References herein to "issue" and derivations thereof with
respect to Letters of Credit shall also include extensions, modifications or
confirmations of any existing Letters of Credit, unless the context otherwise
requires.
SECTION 2A.2 PROCEDURE FOR ISSUANCE OF LETTERS OF CREDIT. The
Borrower may from time to time request that the Issuing Lender issue a Letter
of Credit by delivering to the Issuing Lender at the Administrative Agent's
Office an Application therefor, completed to the reasonable satisfaction of
the Issuing Lender, and such other certificates, documents and other papers
and information as the Issuing Lender may reasonably request. Upon receipt of
any Application, the Issuing Lender shall process such Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall,
subject to Section 2A.1 and Article V, promptly issue the Letter of Credit
requested thereby (but in no event shall the Issuing Lender be required to
issue any Letter of Credit earlier than three (3) Business Days after its
receipt of the Application therefor and all such other certificates,
documents and other papers and information relating thereto) by issuing the
original of such Letter of Credit to the beneficiary thereof or as otherwise
may be agreed by the Issuing Lender and the Borrower. The Issuing Lender
shall furnish to the Borrower a copy of such Letter of Credit and furnish to
each Lender a copy of such Letter of Credit and the amount of each Lender's
participation therein, determined in accordance with Section 2A.4(a), all
promptly following the issuance of such Letter of Credit.
SECTION 2A.3 COMMISSIONS AND OTHER CHARGES.
(a) The Borrower shall pay to the Administrative Agent, for the account of
the Issuing Lender and the L/C Participants, a letter of credit commission on
the face amount of each Letter of Credit in an amount per annum equal to the
then Applicable Margin, determined in accordance with Section 3.1(b). Such
commission shall be payable quarterly in arrears on the last Business Day of
each calendar quarter and on the Termination Date.
(b) In addition to the foregoing commission, the Borrower shall pay the
Issuing Lender an issuance fee of 0.125 percent (0.125%) per annum on the face
amount of each Letter of Credit, payable quarterly in arrears on the last
Business Day of each calendar quarter and on the Termination Date.
(c) The Administrative Agent shall, promptly following its receipt
thereof, distribute to the Issuing Lender and the L/C Participants all
commissions received by the Administrative Agent in accordance with their
respective Commitment Percentages.
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SECTION 2A.4 L/C PARTICIPATIONS.
(a) The Issuing Lender irrevocably agrees to grant and hereby grants to
each L/C Participant, and, to induce the Issuing Lender to issue Letters of
Credit hereunder, each L/C Participant irrevocably agrees to accept and purchase
and hereby accepts and purchases from the Issuing Lender, on the terms and
conditions hereinafter stated, for such L/C Participant's own account and risk
an undivided interest equal to such L/C Participant's Commitment Percentage in
the Issuing Lender's obligations and rights under and in respect of each Letter
of Credit issued hereunder and the amount of each draft paid by the Issuing
Lender thereunder. Each L/C Participant unconditionally and irrevocably agrees
with the Issuing Lender that, if a draft is paid under any Letter of Credit for
which the Issuing Lender is not reimbursed in full by the Borrower in accordance
with the terms of this Agreement, such L/C Participant shall pay to the
Administrative Agent for the account of the Issuing Lender upon demand, and upon
one (1) Business Day's notice, an amount equal to such L/C Participant's
Commitment Percentage of the amount of such draft, or any part thereof, which is
not so reimbursed, which payment shall constitute a Base Rate Loan by such L/C
Participant to the Borrower as provided in Section 2A.5.
(b) Upon becoming aware of any amount required to be paid by any L/C
Participant to the Administrative Agent for the account of the Issuing Lender
pursuant to Section 2A.4(a) in respect of any unreimbursed portion of any
payment made by the Issuing Lender under any Letter of Credit, the Issuing
Lender shall notify the Administrative Agent who, in turn, shall notify each L/C
Participant of the amount and due date of such required payment and such L/C
Participant shall pay to the Administrative Agent for the account of the Issuing
Lender the amount specified on the applicable due date. If any such amount is
paid to the Administrative Agent for the account of the Issuing Lender after the
date such payment is due, upon one (1) Business Day's notice such L/C
Participant shall pay to the Administrative Agent for the account of the Issuing
Lender, in addition to such amount, the product of (i) such amount, TIMES (ii)
the daily average Federal Funds Rate as determined by the Administrative Agent
during the period from and including the date such payment is due to the date on
which such payment is immediately available to the Issuing Lender, TIMES (iii) a
fraction the numerator of which is the number of days that elapse during such
period and the denominator of which is 360. A certificate of the Issuing Lender
with respect to any amounts owing under this Section shall be conclusive in the
absence of manifest error. With respect to payment to the Administrative Agent
for the account of the Issuing Lender of the unreimbursed amounts described in
this Section 2A.4(b), if the L/C Participants receive notice that any such
payment is due, such payment shall be due on the following Business Day.
(c) Whenever, at any time after the Issuing Lender has made payment under
any Letter of Credit and has received from any L/C Participant its Commitment
Percentage of such payment in accordance with this Section 2A.4, the Issuing
Lender receives any payment related to such Letter of Credit (whether directly
from the Borrower or otherwise), or any payment of interest on account thereof,
the Issuing Lender will promptly distribute to such L/C Participant its PRO RATA
share thereof; PROVIDED, that in the event that any such payment received by the
Issuing Lender shall be required to be returned by the Issuing Lender, such L/C
Participant shall return to the Issuing Lender the portion thereof previously
distributed by the Issuing Lender to it.
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SECTION 2A.5 REIMBURSEMENT OBLIGATION OF THE BORROWER. The Borrower
agrees to reimburse the Issuing Lender on each date on which the Issuing
Lender notifies the Borrower of the date and amount of a draft paid under any
Letter of Credit for the amount of (a) such draft so paid and (b) any taxes,
fees, charges or other costs or expenses incurred by the Issuing Lender in
connection with such payment. Each such payment shall be made to the Issuing
Lender at its address for notices specified herein in lawful money of the
United States and in immediately available funds. Interest shall be payable
on any and all amounts remaining unpaid by the Borrower under this Article
IIA from the date such amounts become payable (whether at stated maturity, by
acceleration or otherwise) until payment in full at the rate which would be
payable on any outstanding Base Rate Loans which were then overdue. If the
Borrower fails to timely reimburse the Issuing Lender on the date the
Borrower receives the notice referred to in this Section 2A.5, the Borrower
shall be deemed to have timely given a Notice of Borrowing hereunder to the
Administrative Agent requesting the Lenders to make a Base Rate Loan on such
date in an amount equal to the amount of such drawing and, subject to the
satisfaction or waiver of the conditions precedent specified in Article V,
the Lenders shall make Base Rate Loans in such amount, the proceeds of which
shall be applied to reimburse the Issuing Lender for the amount of the
related drawing and costs and expenses.
SECTION 2A.6 OBLIGATIONS ABSOLUTE. The Borrower's obligations under
this Article IIA (including, without limitation, the Reimbursement
Obligation) shall be absolute and unconditional under any and all
circumstances and irrespective of any set-off, counterclaim or defense to
payment which the Borrower may have or have had against the Issuing Lender,
any L/C Participant or any beneficiary of a Letter of Credit. The Borrower
also agrees with the Issuing Lender that the Issuing Lender and L/C
Participants shall not be responsible for, and the Borrower's Reimbursement
Obligation under Section 2A.5 shall not be affected by, among other things,
the validity or genuineness of documents or of any endorsements thereon, even
though such documents shall in fact prove to be invalid, fraudulent or
forged, or any dispute between or among the Borrower and any beneficiary of
any Letter of Credit or any other party to which such Letter of Credit may be
transferred or any claims whatsoever of a Borrower against any beneficiary of
such Letter of Credit or any such transferee. The Issuing Lender and L/C
Participants shall not be liable for any error, omission, interruption or
delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit; PROVIDED, that the
Issuing Lender shall be responsible for errors or omissions caused by the
Issuing Lender's gross negligence or willful misconduct or breach under this
Agreement. The Borrower agrees that any action taken or omitted by the
Issuing Lender under or in connection with any Letter of Credit or the
related drafts or documents, if done in the absence of gross negligence or
willful misconduct or breach under this Agreement and in accordance with the
standards of care specified in the UCP and, to the extent not inconsistent
therewith, the UCC shall be binding on the Borrower and shall not result in
any liability of the Issuing Lender or any L/C Participant to the Borrower.
The responsibility of the Issuing Lender to the Borrower in connection with
any draft presented for payment under any Letter of Credit shall, in addition
to any payment obligation expressly provided for in such Letter of Credit, be
limited to determining that the documents (including each draft) delivered
under such Letter of Credit in connection with such presentment are in
conformity with such Letter of Credit.
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SECTION 2A.7 EFFECT OF APPLICATION. To the extent that any provision
of any Application related to any Letter of Credit is inconsistent with the
provisions of this Article IIA, the provisions of this Article IIA shall
apply.
ARTICLE III
GENERAL LOAN PROVISIONS
SECTION 3.1 INTEREST.
(a) INTEREST RATE OPTIONS. Subject to the provisions of this Section 3.1,
at the election of the Borrower in accordance with Article II, the unpaid
principal balance of any Loan shall bear interest at (A) the Base Rate, or (B)
the Adjusted Eurodollar Rate PLUS the Applicable Margin. The Borrower shall
select the type of interest rate applicable to any Loan at the time a Notice of
Borrowing is given pursuant to Section 2.2(a) or at the time a Notice of
Conversion/Continuation is given pursuant to Section 3.2. Any Loan as to which
the Borrower has not duly specified an interest rate as provided immediately
above shall be deemed a Base Rate Loan.
(b) APPLICABLE MARGIN. The applicable margin provided for in Section
3.1(a) with respect to the Eurodollar Loans (the "Applicable Margin") shall be
determined by reference to the Leverage Ratio as of the end of each fiscal
quarter, as follows:
Leverage Ratio Applicable Margin Per Annum
-------------- ---------------------------
Greater than or equal to 2.00%
.50 to 1.00
Greater than or equal to 1.75%
.375 to 1.00 but less than
.50 to 1.00
Less than .375 to 1.00 1.50%
Adjustments, if any, in the Applicable Margin based on the Leverage Ratio shall
be made by the Administrative Agent on the tenth (10th) Business Day (each an
"Adjustment Date") after receipt by the Administrative Agent of quarterly
financial statements for GTA and the other Credit Parties and the accompanying
Officer's Compliance Certificate setting forth the Leverage Ratio of GTA and the
other Credit Parties as of the most recent fiscal quarter end. Subject to
Section 3.1(c), in the event such financial statements and certificate of
covenant compliance are not delivered within the time required by Sections 7.1
and 7.2, the Applicable Margin shall be the highest Applicable Margin set forth
above until the Adjustment Date following the delivery of such financial
statements and certificate or evidence of covenant compliance, as applicable.
25
Notwithstanding the foregoing, at such time as the Borrower or GTA obtains
an investment-grade senior debt rating by ▇▇▇▇▇'▇ AND S&P (the "Dual Rating")
and for so long as the Borrower or GTA retains such Dual Rating, the Applicable
Margin shall be determined by reference to the lower of ▇▇▇▇▇'▇ or S&P's ratings
thereof in accordance with the following pricing matrix:
Senior Debt Rating Applicable Margin Per Annum
------------------ ---------------------------
BBB/Baa2 or higher 1.25%
BBB-/Baa3 1.35%
; PROVIDED, that, in the event the Borrower or GTA obtains an investment-grade
senior debt rating by either ▇▇▇▇▇'▇ (Baa3 or higher) OR S&P (BBB- or higher)
(the "Senior Rating"), and provided the rating of the other rating agency is not
less than the grade immediately below investment grade (I.E., Ba1 if ▇▇▇▇▇'▇ and
BB+ if S&P) (the "Junior Rating" and collectively with the Senior Rating, the
"Combined Rating")) and for so long as the Borrower or GTA retains such Combined
Rating, the Applicable Margin shall be 1.50% per annum. In the event the
Borrower or GTA, as applicable, loses (i) the Dual Rating or (ii) the Senior
Rating or the Junior Rating, as applicable, the Applicable Margin shall
thereafter be determined by reference to the Leverage Ratio as provided above
until such time as the Borrower or GTA obtains a Dual Rating or a Combined
Rating.
(c) DEFAULT RATE. Upon the occurrence and during the continuance of an
Event of Default, (i) the Borrower shall no longer have the option to request or
Convert to Eurodollar Loans, (ii) all outstanding Eurodollar Loans may at the
option of the Administrative Agent and shall at the direction of the Required
Lenders bear interest at a rate per annum which shall be two percent (2%) in
excess of the rate then applicable to Eurodollar Loans, as applicable, until the
end of the applicable Interest Period and thereafter at a rate equal to two
percent (2%) in excess of the rate then applicable to Base Rate Loans, and (iii)
all outstanding Base Rate Loans shall bear interest at a rate per annum equal to
two percent (2%) in excess of the rate then applicable to Base Rate Loans.
Interest shall continue to accrue on the Notes after the filing by or against
the Borrower of any petition seeking any relief in bankruptcy or under any act
or law pertaining to insolvency or debtor relief, whether state, federal or
foreign.
(d) INTEREST PAYMENT AND COMPUTATION. Interest on each Base Rate Loan
shall be payable in arrears on the last Business Day of each month, commencing
April 30, 1999, and on the Termination Date. Interest on each Eurodollar Loan
shall be payable in arrears on the last day of each applicable Interest Period
and on the Termination Date. All interest rates, fees and commissions provided
under this Agreement shall be computed on the basis of a 360-day year and
assessed for the actual number of days elapsed.
(e) MAXIMUM RATE. In no contingency or event whatsoever shall the
aggregate of all amounts deemed interest under this Agreement or under any of
the Notes charged or collected pursuant to the terms of this Agreement or
pursuant to any of the Notes exceed the highest rate permissible under any
Applicable Law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto. In the event that such a court determines
that the Lenders have charged or received interest under this Agreement in
excess
26
of the highest rate permissible under Applicable Law, the rate in effect
under this Agreement shall automatically be reduced to the maximum rate
permitted by Applicable Law and the Lenders shall at the Administrative
Agent's option promptly refund to the Borrower any interest received by
Lenders in excess of the maximum rate permitted by Applicable Law or shall
apply such excess to the principal balance of the Obligations if permitted by
Applicable Law (in either event, the Administrative Agent shall advise the
Borrower in writing promptly of its decision). It is the intent of this
Agreement that the Borrower not pay or contract to pay, and that neither the
Administrative Agent nor any Lender receive or contract to receive, directly
or indirectly in any manner whatsoever, interest in excess of that which may
be paid by the Borrower under Applicable Law.
SECTION 3.2 NOTICE AND MANNER OF CONVERSION OR CONTINUATION OF LOANS.
Provided that no Event of Default has occurred and is then continuing, the
Borrower shall have the option to (a) Convert at any time all or any portion of
its outstanding Base Rate Loans in a principal amount equal to $500,000 or any
whole multiple of $100,000 in excess thereof into one or more Eurodollar Loans,
and (b) upon the expiration of any Interest Period, (i) Convert all or any part
of its outstanding Eurodollar Loans in a principal amount equal to $500,000 or a
whole multiple of $100,000 in excess thereof into Base Rate Loans, or (ii)
continue such Eurodollar Loans as Eurodollar Loans. Whenever the Borrower
desires to Convert or continue Loans as provided immediately above, the Borrower
shall give the Administrative Agent irrevocable prior written notice in the form
attached as EXHIBIT D (a "Notice of Conversion/Continuation") not later than
11:00 a.m. (Charlotte time) three (3) Business Days before the day on which a
proposed Conversion or continuation of such Loan is to be effective specifying
(A) the Loans to be Converted or continued, and, in the case of any Eurodollar
Loan to be Converted or continued, the last day of the Interest Period therefor,
(B) the effective date of such Conversion or continuation (which shall be a
Business Day), and (C) the principal amount of such Loans to be Converted or
continued. The Administrative Agent shall promptly notify the Lenders of such
Notice of Conversion/Continuation.
SECTION 3.3 FEES.
(a) UNUSED FEE. Commencing on June 30, 1999, the Borrower shall pay to the
Administrative Agent, for the account of the Lenders, a non-refundable fee at a
rate per annum equal to 0.20% on the average daily unused portion of the
Aggregate Commitment exclusive of Letter of Credit Obligations. The commitment
fee shall be payable quarterly in arrears on the last Business Day of each
quarter during the term of this Agreement commencing March 31, 1999, and on the
Termination Date. Such commitment fee shall be distributed by the Administrative
Agent to the Lenders PRO rata in accordance with the Lenders' respective
Commitment Percentages.
(b) ADMINISTRATIVE AGENT'S AND OTHER FEES. The Borrower shall pay to the
Administrative Agent, for its account, the fees set forth in the separate fee
letter agreement executed by the Borrower and the Administrative Agent dated
December 21, 1998.
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SECTION 3.4 PAYMENT.
(a) MANNER OF PAYMENT. Each payment by the Borrower on account of
the principal of or interest on the Loans or of any fee, commission or other
amounts payable to the Lenders under this Agreement or any Note shall be made
not later than 1:00 p.m. (Charlotte time) on the date specified for payment
under this Agreement to the Administrative Agent at the Administrative
Agent's Office for the account of the Lenders (other than as set forth below)
PRO RATA in accordance with their respective Commitment Percentages, in
Dollars, in immediately available funds and shall be made without any
set-off, counterclaim or deduction whatsoever. Any payment received after
such time but before 2:00 p.m. (Charlotte time) on such day shall be deemed a
payment on such date for the purposes of Section 11.1, but for all other
purposes shall be deemed to have been made on the next succeeding Business
Day. Any payment received after 2:00 p.m. (Charlotte time) shall be deemed to
have been made on the next succeeding Business Day for all purposes. On the
Business Day that each such payment is deemed made, the Administrative Agent
shall distribute to each Lender at its address for notices set forth in this
Agreement its PRO RATA share of such payment in accordance with this Section
3.4 such Lender's Commitment Percentage and shall wire advice of the amount
of such credit to each Lender; PROVIDED that if the Administrative Agent
fails to distribute such funds on the date on which any payment is deemed
made, the Administrative Agent shall pay interest thereon at the Federal
Funds Rate from the date such payment is received until the date such funds
are distributed by the Administrative Agent. Each payment to the
Administrative Agent of the Administrative Agent's fees or the expenses of
the Administrative Agent or the Issuing Lender shall be made for the account
of the Administrative Agent. Each payment to the Administrative Agent of the
Issuing Lender's fees or L/C Participants' commissions shall be made in like
manner, but for the account of the Issuing Lender or the L/C Participants, as
the case may be. Any amount payable to any Lender under Sections 3.7, 3.8,
3.12 or 13.2 shall be paid to the Administrative Agent for the account of the
applicable Lender.
(b) CREDITING OF PAYMENTS AND PROCEEDS. In the event that the
Borrower shall fail to pay any of the Obligations when due and the
Obligations have been accelerated pursuant to Section 11.2, all payments
received by the Lenders upon the Notes and the other Obligations and all net
proceeds from the enforcement of the Obligations shall be applied first to
all expenses then due and payable by the Borrower under this Agreement,
second, to all indemnity obligations then due and payable by the Borrower
under this Agreement, and third, to all Administrative Agent's fees, all
commitment and other fees and commissions then due and payable by Borrower
under this Agreement, accrued and unpaid interest on the Notes, any
termination payments due from Borrower in respect of a Hedging Agreement with
any Lender and the principal amount of the Notes (all such amounts to be
allocated PRO RATA in accordance with all such amounts due), in that order.
SECTION 3.5 RIGHT OF SET-OFF; ADJUSTMENTS.
(a) Upon the occurrence and during the continuance of any Event of
Default, each Lender (and each of its Affiliates) is hereby authorized at any
time and from time to time, to the fullest extent permitted by law, to set
off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time
owing by such Lender (or any of its Affiliates) to or for the credit or the
account of the Borrower
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against any and all of the obligations of the Borrower now or hereafter
existing under this Agreement and the Note held by such Lender, irrespective
of whether such Lender shall have made any demand under this Agreement or
such Note and although such obligations may be unmatured. Each Lender agrees
promptly to notify the Borrower after any such set-off and application made
by such Lender; PROVIDED, HOWEVER, that the failure to give such notice shall
not affect the validity of such set-off and application. The rights of each
Lender under this section are in addition to other rights and remedies
(including, without limitation, other rights of set-off) that such Lender may
have.
(b) If any Lender (a "Benefited Lender") shall at any time receive
any payment of all or part of the Loans owing to it, or interest thereon, or
receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in
respect of such other Lender's Loans owing to it, or interest thereon, such
Benefited Lender shall purchase for cash from the other Lenders a
participating interest in such portion of each such other Lender's Loans
owing to it, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause such
Benefited Lender to share the excess payment or benefits of such collateral
or proceeds ratably with each of the Lenders; PROVIDED, HOWEVER, that if all
or any portion of such excess payment or benefits is thereafter recovered
from such Benefited Lender, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but
without interest. The Borrower agrees that any Lender so purchasing a
participation from a Lender pursuant to this Section 3.5 may, to the fullest
extent permitted by law, exercise all of its rights of payment (including the
right of set-off) with respect to such participation as fully as if such
Person were the direct creditor of the Borrower in the amount of such
participation.
SECTION 3.6 NATURE OF OBLIGATIONS OF LENDERS REGARDING EXTENSIONS
OF CREDIT; ASSUMPTION BY THE ADMINISTRATIVE AGENT. The obligations of the
Lenders under this Agreement to make the Loans are several and are not joint
or joint and several. Unless the Administrative Agent shall have received
notice from a Lender prior to a proposed borrowing date that such Lender will
not make available to the Administrative Agent such Lender's ratable portion
of the amount to be borrowed on such date (which notice shall not release
such Lender of its obligations under this Agreement), the Administrative
Agent may assume that such Lender has made such portion available to the
Administrative Agent on the proposed borrowing date in accordance with
Section 2.2(b) and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower on such date a corresponding
amount. If such amount is made available to the Administrative Agent on a
date after such borrowing date, such Lender shall pay to the Administrative
Agent on demand an amount, until paid, equal to the product of (a) the amount
of such Lender's Commitment Percentage of such borrowing, TIMES (b) the daily
average Federal Funds Rate during such period as determined by the
Administrative Agent, TIMES (c) a fraction the numerator of which is the
number of days that elapse from and including such borrowing date to the date
on which such Lender's Commitment Percentage of such borrowing shall have
become immediately available to the Administrative Agent and the denominator
of which is 360. A certificate of the Administrative Agent with respect to
any amounts owing under this Section 3.6 shall be conclusive, absent manifest
error. If such Lender's Commitment Percentage of such borrowing is not made
available to the Administrative Agent by such Lender within three (3)
Business Days of such
29
borrowing date, the Administrative Agent shall be entitled to recover such
amount made available by the Administrative Agent with interest thereon at
the Adjusted Eurodollar Rate, on demand, from the Borrower. The failure of
any Lender (a "Defaulting Lender") to make its Commitment Percentage of any
Loan available shall not relieve it or any other Lender of its obligation, if
any, under this Agreement to make its Commitment Percentage of such Loan
available to Borrower on such borrowing date, but no Lender shall be
responsible for the failure of any other Lender to make its Commitment
Percentage of such Loan available on the applicable borrowing date.
SECTION 3.7 INDEMNITY. The Borrower hereby indemnifies each of the
Lenders against any reasonable and actually incurred loss or expense which
arises or is directly attributable to each Lender's obtaining, liquidating or
employing deposits or other funds acquired to effect, fund or maintain any
Loan (a) as a consequence of any failure by the Borrower to make any payment
when due of any amount due under this Agreement in connection with a Loan,
(b) due to any failure of the Borrower to borrow on a date specified therefor
in a Notice of Borrowing, or (c) due to any payment or prepayment of any Loan
on a date other than the date specified for such payment in the applicable
Notice of Repayment; provided, however, the Borrower shall have no such
obligation to any Lender who is a Defaulting Lender. The amount of such
reasonable and actually incurred loss or expense shall be determined, in the
applicable Lender's sole reasonable discretion, based upon the condition that
such Lender funded its Commitment Percentage of the Loans in the London
interbank market and using any reasonable attribution or averaging methods
which such Lender deems appropriate and practical. A certificate of such
Lender setting forth the basis for determining such amount or amounts
necessary to compensate such Lender shall be forwarded to the Borrower
through the Administrative Agent and shall be conclusively presumed to be
correct save for manifest error.
SECTION 3.8 INCREASED COST AND REDUCED RETURN.
(a) If, after the date of this Agreement, the adoption of any
applicable law, rule, or regulation, or any change in any applicable law,
rule, or regulation, or any change in the interpretation or administration
thereof by any Governmental Authority, central bank, or comparable agency
charged with the interpretation or administration thereof, or compliance by
any Lender (or its Applicable Lending Office) with any request or directive
(whether or not having the force of law) of any such Governmental Authority,
central bank, or comparable agency; excepting, however, any such change
occasioned by such Lender's default or non-compliance with such applicable
rules:
(i) shall subject such Lender (or its Applicable Lending
Office) to any tax, duty, or other charge with respect to any
Eurodollar Loans, its Letters of Credit, its Note, or its obligation
to make Eurodollar Loans, or change the basis of taxation of any amounts
payable to such Lender (or its Applicable Lending Office) under this
Agreement or its Note in respect of any Eurodollar Loans (other than
taxes imposed on the overall net income of such Lender by the jurisdiction
in which such Lender has its principal office or such Applicable Lending
Office);
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(ii) shall impose, modify, or deem applicable any reserve,
special deposit, assessment, or similar requirement (other than the
Reserve Requirement utilized in the determination of the Adjusted
Eurodollar Rate) relating to any extensions of credit or other assets
of, or any deposits with or other liabilities or commitments of, such
Lender (or its Applicable Lending Office), including the Commitment of
such Lender under this Agreement; or
(iii) shall impose on such Lender (or its Applicable Lending
Office) or the London interbank market any other condition affecting this
Agreement or its Note or any of such extensions of credit or liabilities
or commitments;
and the result of any of the foregoing is to increase the cost to such Lender
(or its Applicable Lending Office) of making or maintaining any Eurodollar
Loans or to reduce any sum received or receivable by such Lender (or its
Applicable Lending Office) under this Agreement or its Note with respect to
any Eurodollar Loans, then the Borrower shall pay to such Lender on demand
(and a full written explanation for the increase) such amount or amounts
solely applicable to its Loan or in relationship of its Loan to other loans
of such Lender as will compensate such Lender for such increased cost or
reduction. If any Lender requests compensation by the Borrower under this
Section 3.8, the Borrower may, in its sole discretion, by notice to such
Lender (with a copy to the Administrative Agent), suspend the obligation of
such Lender to make or continue Eurodollar Loans until the event or condition
giving rise to such request ceases to be in effect; PROVIDED that such
suspension shall not affect the right of such Lender to receive the
compensation so requested, if applicable, subject to the foregoing conditions
and caveats.
(b) If, after the date of this Agreement, any Lender shall have
determined that the adoption of any applicable law, rule, or regulation
regarding capital adequacy or any change therein or in the interpretation or
administration thereof by any governmental authority, central bank, or
comparable agency charged with the interpretation or administration thereof,
or any request or directive regarding capital adequacy (whether or not having
the force of law) of any such governmental authority, central bank, or
comparable agency, has or would have the effect of reducing the rate of
return on the capital of such Lender or any corporation controlling such
Lender as a consequence of such Lender's obligations under this Agreement to
a level below that which such Lender or such corporation could have achieved
but for such adoption, change, request, or directive (taking into
consideration its policies with respect to capital adequacy), then from time
to time upon demand the Borrower shall pay to such Lender such additional
amount or amounts as will compensate such Lender for such reduction.
(c) Each Lender shall promptly notify the Borrower and the
Administrative Agent in writing of any event of which it has knowledge,
occurring after the date of this Agreement, which will entitle such Lender to
compensation pursuant to this Section and will designate a different
Applicable Lending Office if such designation will avoid the need for, or
reduce the amount of, such compensation and will not, in the judgment of such
Lender, be otherwise disadvantageous to it. Any Lender claiming compensation
under this Section shall promptly furnish to the Borrower and the
Administrative Agent a written statement setting forth the additional amount
or amounts to be paid to it under this Agreement which (subject to the terms
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of this Agreement) shall be conclusive in the absence of manifest error. In
determining such amount, such Lender may use any reasonable averaging and
attribution methods.
SECTION 3.9 LIMITATION ON TYPES OF LOANS. If on or prior to the
first day of any Interest Period the Administrative Agent reasonably
determines (which determination shall be conclusive) that by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Eurodollar Rate for such Interest Period, then
the Administrative Agent shall give the Borrower prompt written notice
thereof specifying the relevant amounts or periods, and so long as such
condition remains in effect, the Lenders shall be under no obligation to make
additional Eurodollar Loans or continue Eurodollar Loans, and the Borrower
shall, at its election, on the last day(s) of the then current Interest
Period(s) for the outstanding Eurodollar Loans, prepay such Eurodollar Loans,
or Convert such Eurodollar Loans into Base Rate Loans, or prepay the
Obligations in full and terminate this Agreement.
SECTION 3.10 ILLEGALITY. Notwithstanding any other provision of
this Agreement, in the event that it becomes unlawful for any Lender or its
Applicable Lending Office to make, maintain, or fund Eurodollar Loans under
this Agreement, then such Lender shall promptly notify the Borrower thereof
in writing and such Lender's obligation to make or continue Eurodollar Loans
shall be suspended until such time as such Lender may again make, maintain,
and fund Eurodollar Loans (in which case the provisions of Section 3.11 shall
be applicable).
SECTION 3.11 TREATMENT OF AFFECTED LOANS. If the obligation of any
Lender to make or continue Eurodollar Loan shall be suspended pursuant to
Section 3.9 or 3.10 and unless such Eurodollar Loans are paid, until such
Lender gives prior written notice to the Borrower as provided below that the
circumstances specified in Section 3.9 or 3.10 no longer exist:
(a) to the extent that such Lender's Eurodollar Loans have been so
Converted into Base Rate Loans, all payments and prepayments of principal
that would otherwise be applied to the Eurodollar Loans shall be applied
instead to its Base Rate Loans; and
(b) all Loans that would otherwise be made or continued by such
Lender as Eurodollar Loans shall be made or continued instead as Base Rate
Loans, and all Loans of such Lender that would otherwise be Converted into
Eurodollar Loans shall be Converted instead into (or shall remain as) Base
Rate Loans.
If such Lender gives written notice to the Borrower (with a copy to the
Administrative Agent) that the circumstances specified in Section 3.9 or 3.10
no longer exist (which such Lender agrees to do promptly upon such
circumstances ceasing to exist) such Lender's Base Rate Loans may be
Converted to Eurodollar Loans.
SECTION 3.12 COMPENSATION. Upon the request of any Lender, the
Borrower shall pay to such Lender such amount or amounts as shall be
sufficient (in the reasonable, good faith opinion of such Lender) to
compensate it for any reasonable and actually incurred loss, cost, or expense
(including loss of anticipated profits) incurred by it as a result of:
32
(a) any payment, prepayment, or Conversion of a Eurodollar Loan for
any reason (including, without limitation, the acceleration of the Loans
pursuant to Section 11.2 and any increase in the Aggregate Commitment
pursuant to Section 2.6) on a date other than the last day of the Interest
Period for such Loan; or
(b) any failure by the Borrower for any reason (including, without
limitation, the failure of any condition precedent specified in Article V to
be satisfied) to borrow or prepay a Eurodollar Loan on the date for such
borrowing or prepayment specified in the relevant Notice of Borrowing or
Notice of Repayment under this Agreement.
SECTION 3.13 TAXES.
(a) Any and all payments by the Borrower to or for the account of
any Lender or the Administrative Agent under this Agreement or under or in
respect of any other Loan Document shall be made free and clear of and
without deduction for any and all present or future taxes, duties, levies,
imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, EXCLUDING, in the case of each Lender and the Administrative
Agent, taxes imposed on its income, and franchise taxes imposed on it, by the
jurisdiction under the laws of which such Lender (or its Applicable Lending
Office) or the Administrative Agent (as the case may be) is organized or any
political subdivision thereof (all such non-excluded taxes, duties, levies,
imposts, deductions, charges, withholdings, and liabilities being hereinafter
referred to as "Taxes"). If the Borrower shall be required by law to deduct
any Taxes from or in respect of any sum payable under this Agreement or under
or in respect of any other Loan Document to any Lender or the Administrative
Agent, (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 3.13) such Lender or the Administrative Agent
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law, and (iv) the
Borrower shall furnish to the Administrative Agent, at its address referred
to in Section 13.1, the original or a certified copy of a receipt evidencing
payment thereof.
(b) In addition, the Borrower agrees to pay any and all present or
future stamp or documentary taxes and any other excise or property taxes or
charges or similar levies which arise from any payment made under this
Agreement by the Borrower or any other Loan Document or from the execution or
delivery of, or otherwise with respect to, this Agreement or any other Loan
Document (hereinafter referred to as "Other Taxes").
(c) The Borrower agrees to indemnify each Lender and the
Administrative Agent for the full amount of Taxes and Other Taxes (including,
without limitation, any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section 3.13) properly paid by
such Lender or the Administrative Agent (as the case may be) and any
liability (including penalties, interest, and expenses) arising therefrom or
with respect thereto.
(d) Each Lender organized under the laws of a jurisdiction outside
the United States, on or prior to the date of its execution and delivery of
this Agreement in the case of each Lender
33
listed on the signature pages of this Agreement and on or prior to the date
on which it becomes a Lender in the case of each other Lender, and from time
to time thereafter if requested in writing by the Borrower or the
Administrative Agent (but only so long as such Lender remains lawfully able
to do so), shall provide the Borrower and the Administrative Agent with (i)
Internal Revenue Service Form 1001 or 4224, as appropriate, or any successor
form prescribed by the Internal Revenue Service, certifying that such Lender
is entitled to benefits under an income tax treaty to which the United States
is a party which reduces the rate of withholding tax on payments of interest
or certifying that the income receivable pursuant to this Agreement is
effectively connected with the conduct of a trade or business in the United
States, (ii) Internal Revenue Service Form W-8 or W-9, as appropriate, or any
successor form prescribed by the Internal Revenue Service, and (iii) any
other form or certificate required by any taxing authority (including any
certificate required by Sections 871(h) and 881(c) of the Internal Revenue
Code), certifying to the Administrative Agent and the Borrower that such
Lender is entitled to an exemption from or a reduced rate of tax on payments
pursuant to this Agreement or any of the other Loan Documents.
(e) For any period with respect to which a Lender has failed to
provide the Borrower and the Administrative Agent with the appropriate form
pursuant to Section 3.13(d) (unless such failure is due to a change in
treaty, law, or regulation occurring subsequent to the date on which a form
originally was required to be provided), such Lender shall not be entitled to
indemnification under Section 3.13(a) or 3.13(b) with respect to Taxes
imposed by the United States; PROVIDED, HOWEVER, that should a Lender, which
is otherwise exempt from or subject to a reduced rate of withholding tax,
become subject to Taxes because of its failure to deliver a form required
under this Agreement, the Borrower shall take such reasonable steps as such
Lender shall reasonably request to assist such Lender to recover such Taxes.
(f) If the Borrower is required to pay additional amounts to or for
the account of any Lender pursuant to this Section 3.13, then such Lender
will agree to use reasonable efforts to change the jurisdiction of its
Applicable Lending Office so as to eliminate or reduce any such additional
payment which may thereafter accrue if such change, in the judgment of such
Lender, is not otherwise disadvantageous to such Lender.
(g) Within thirty (30) days after the date of any payment of Taxes,
the Borrower shall furnish to the Administrative Agent the original or a
certified copy of a receipt evidencing such payment.
(h) Without prejudice to the survival of any other agreement of the
Borrower arising in connection with this Agreement, the agreements and
obligations of the Borrower contained in this Section 3.13 shall survive the
termination of the Commitments and the payment in full of the Notes.
SECTION 3.14 REIT STATUS. GTA has made an election to be treated
as a "real estate investment trust" under Sections 856 through 860 of the
Code and will not hereafter (i) revoke such election, (ii) take or fail to
take any action that will cause such election to be terminated or to cease to
be valid at any time, (iii) incur liability for any excise tax under Section
4981 of the Code or (iv) incur liability for any prohibited transaction under
Section 857(b) of the Code.
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SECTION 3.15 SENIOR DEBT. The Obligations of the Borrower under
this Agreement and the obligations and indebtedness of the Borrower under the
Bridge Facility constitute senior Debt and shall be PARI PASSU subject only
to the restrictions on prepayment provided for in Section 2.3(d).
ARTICLE IV
GUARANTY
SECTION 4.1 GUARANTY OF OBLIGATIONS OF THE GUARANTORS. Each of the
Guarantors hereby jointly and severally unconditionally guarantees to the
Administrative Agent for the ratable benefit of the Administrative Agent and
the Lenders, and their permissible respective successors, endorsees,
transferees and assigns, the prompt payment (whether at stated maturity, by
acceleration or otherwise) and performance of all Obligations of the
Borrower, whether primary or secondary (whether by way of endorsement or
otherwise), whether now existing or hereafter arising, whether or not from
time to time reduced or extinguished (except by payment thereof) or hereafter
increased or incurred, whether or not recovery may be or hereafter become
barred by the statute of limitations, whether enforceable or unenforceable as
against the Borrower, whether or not discharged, stayed or otherwise affected
by any bankruptcy, insolvency or other similar law or proceeding, whether
created directly with the Administrative Agent or any Lender or acquired by
the Administrative Agent or any Lender through assignment, endorsement or
otherwise as permitted under this Agreement, whether matured or unmatured,
whether joint or several, as and when the same become due and payable
(whether at maturity or earlier, by reason of acceleration, mandatory
repayment or otherwise), in accordance with the terms of any such instruments
evidencing any such obligations, including all renewals, extensions or
modifications thereof (all Obligations of the Borrower to the Administrative
Agent or any Lender, including all of the foregoing, being hereinafter
collectively referred to as the "Guaranteed Obligations").
SECTION 4.2 NATURE OF GUARANTY. Each Guarantor agrees that this
Guaranty is a continuing, unconditional guaranty of payment and performance
and not of collection, and that its obligations under this Agreement shall be
primary, absolute and unconditional, irrespective of, and unaffected by:
(a) the genuineness, validity, regularity, enforceability or any
future amendment of, or change in, this Agreement or any other Loan Document
or any other agreement, document or instrument to which the Borrower is or
may become a party;
(b) the absence of any action to enforce this Agreement or any
other Loan Document or the waiver or consent by the Administrative Agent or
any Lender with respect to any of the provisions of this Agreement or any
other Loan Document;
(c) the existence, value or condition of, or failure to perfect its
Lien against, any security for or other guaranty of the Guaranteed
Obligations or any action, or the absence of
35
any action, by the Administrative Agent or any Lender in respect of such
security or guaranty (including, without limitation, the release of any such
security or guaranty); or
(d) any other action or circumstances which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor;
it being agreed by each Guarantor that its obligations under this Guaranty
shall not be discharged until the final and indefeasible payment and
performance, in full, of the Guaranteed Obligations and the termination of
the Aggregate Commitment. Each Guarantor expressly waives all rights it may
now or in the future have under any statute (including, without limitation,
North Carolina General Statutes Section 26-7, ET SEQ. or similar law), or at
law or in equity, or otherwise, to compel the Administrative Agent or any
Lender to proceed in respect of the Guaranteed Obligations against the
Borrower or any other party or against any security for or other guaranty of
the payment and performance of the Guaranteed Obligations before proceeding
against, or as a condition to proceeding against, such Guarantor. Each
Guarantor further expressly waives and agrees not to assert or take advantage
of any defense based upon the failure of the Administrative Agent or any
Lender to commence an action in respect of the Guaranteed Obligations against
the Borrower, any Guarantor or any other party or any security for the
payment and performance of the Guaranteed Obligations. Each Guarantor agrees
that any notice or directive given at any time to the Administrative Agent or
any Lender which is inconsistent with the waivers in the preceding two
sentences shall be null and void and may be ignored by the Administrative
Agent or Lender, and, in addition, may not be pleaded or introduced as
evidence in any litigation relating to this Guaranty for the reason that such
pleading or introduction would be at variance with the written terms of this
Guaranty, unless the Administrative Agent and the Required Lenders have
specifically agreed otherwise in writing. The foregoing waivers are of the
essence of the transaction contemplated by the Loan Documents and, but for
this Guaranty and such waivers, the Administrative Agent and Lenders would
decline to enter into this Agreement.
SECTION 4.3 DEMAND BY THE ADMINISTRATIVE AGENT. In addition to the
terms set forth in Section 4.2, and in no manner imposing any limitation on
such terms, if all or any portion of the then outstanding Guaranteed
Obligations under this Agreement are declared to be immediately due and
payable in accordance with the terms of this Agreement, then the Guarantors
shall, upon demand in writing therefor by the Administrative Agent to the
Guarantors, pay all or such portion of the outstanding Guaranteed Obligations
then declared due and payable. Payment by the Guarantors shall be made to the
Administrative Agent, to be credited and applied upon the Guaranteed
Obligations, in immediately available federal funds to an account designated
by the Administrative Agent or at the address referenced in this Agreement
for the giving of notice to the Administrative Agent or at any other address
that may be specified in writing from time to time by the Administrative
Agent.
SECTION 4.4 WAIVERS. In addition to the waivers contained in
Section 4.2, each Guarantor waives, and agrees that it shall not at any time
insist upon, plead or in any manner whatever claim or take the benefit or
advantage of, any appraisal, valuation, stay, extension, marshalling of
assets or redemption laws, or exemption, whether now or at any time hereafter
in force, which may delay, prevent or otherwise affect the performance by
such Guarantor of its obligations under, or the enforcement by the
Administrative Agent or the
36
Lenders of, this Guaranty. Each Guarantor further hereby waives diligence,
presentment, demand, protest and notice of whatever kind or nature with
respect to any of the Guaranteed Obligations and waives the benefit of all
provisions of law which are or might be in conflict with the terms of this
Guaranty. Each Guarantor represents, warrants and agrees that its obligations
under this Guaranty are not and shall not be subject to any counterclaims,
offsets or defenses of any kind against the Administrative Agent, the Lenders
or the Borrower whether now existing or which may arise in the future.
SECTION 4.5 BENEFITS OF GUARANTY. The provisions of this Guaranty
are for the benefit of the Administrative Agent and the Lenders and their
respective successors, transferees, endorsees and assigns, and nothing in
this Agreement contained shall impair, as between the Borrower, the
Administrative Agent and the Lenders, the obligations of the Borrower under
the Loan Documents. In the event all or any part of the Guaranteed
Obligations are transferred, endorsed or assigned by the Administrative Agent
or any Lender to any Person or Persons, any reference to any "Administrative
Agent" or "Lenders" in this Agreement shall be deemed to refer equally to
such Person or Persons.
SECTION 4.6 MODIFICATION OF LOAN DOCUMENTS ETC. If the
Administrative Agent or the Lenders shall at any time or from time to time,
with or without the consent of, or notice to, the Guarantors:
(a) change or extend the manner, place or terms of payment of, or
renew or alter all or any portion of, the Guaranteed Obligations;
(b) take any action under or in respect of the Loan Documents in
the exercise of any remedy, power or privilege contained therein or available
to it at law, in equity or otherwise, or waive or refrain from exercising any
such remedies, powers or privileges;
(c) amend or modify, in any manner whatsoever, the Loan Documents;
(d) extend or waive the time for performance by the Guarantors, the
Borrower or any other Person of, or compliance with, any term, covenant or
agreement (other than this Guaranty) on its part to be performed or observed
under a Loan Document, or waive such performance or compliance or consent to
a failure of, or departure from, such performance or compliance;
(e) take and hold security or collateral for the payment of the
Guaranteed Obligations or sell, exchange, release, dispose of, or otherwise
deal with, any property pledged, mortgaged or conveyed, or in which the
Administrative Agent or the Lenders have been granted a Lien, to secure any
Debt of any Guarantor or the Borrower to the Administrative Agent or the
Lenders;
(f) release anyone who may be liable in any manner for the payment
of any amounts owed by the Guarantors or the Borrower to the Administrative
Agent or any Lender;
37
(g) modify or terminate the terms of any intercreditor or
subordination agreement pursuant to which claims of other creditors of the
Guarantors or the Borrower are subordinated to the claims of the
Administrative Agent or any Lender; or
(h) apply any sums by whomever paid or however realized to any
amounts owing by the Guarantors or the Borrower to the Administrative Agent
or any Lender in such manner as the Administrative Agent or any Lender shall
determine in its discretion;
then neither the Administrative Agent nor any Lender shall incur any
liability to the Guarantors as a result thereof, and no such action shall
impair or release the obligations of the Guarantors under this Agreement.
SECTION 4.7 REINSTATEMENT. Each Guarantor agrees that if any
payment made by the Borrower or any other Person applied to the Obligations
is at any time annulled, set aside, rescinded, invalidated, declared to be
fraudulent or preferential or otherwise required to be refunded or repaid by
the Administrative Agent or Lender to the Borrower, their estate, trustee,
receiver or any other party, including, without limitation, such Guarantor,
under any Applicable Law or equitable cause, then, to the extent of such
payment or repayment, such Guarantor's liability under this Agreement shall
be and remain in full force and effect, as fully as if such payment had never
been made, and, if prior thereto, this Guaranty shall have been canceled or
surrendered, this Guaranty shall be reinstated in full force and effect, and
such prior cancellation or surrender shall not diminish, release, discharge,
impair or otherwise affect the obligations of such Guarantor in respect of
the amount of such payment.
SECTION 4.8 WAIVER OF SUBROGATION AND CONTRIBUTION. Each Guarantor
hereby irrevocably waives any claims or other rights which it may now or
hereafter acquire against the Borrower that arise from the existence or
performance of such Guarantor's obligations under this Guaranty, including,
without limitation, any right of subrogation, reimbursement, exoneration,
contribution, indemnification, any right to participate in any claim or
remedy of the Administrative Agent or the Lenders against the Borrower
security or collateral which the Administrative Agent or the Lenders now have
or may hereafter acquire, whether or not such claim, remedy or right arises
in equity or under contract, statute or common law, by any payment made under
this Agreement or otherwise, including without limitation, the right to take
or receive from the Borrower, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account
of such claim or other rights.
SECTION 4.9 REMEDIES. Upon the occurrence of any Event of Default,
the Administrative Agent may enforce against any Guarantor its obligations
and liabilities under this Agreement and exercise such other rights and
remedies as may be available to the Administrative Agent under this
Agreement, the other Loan Documents or applicable law.
SECTION 4.10 LIMIT OF LIABILITY. The obligations of each Guarantor
under this Agreement shall be limited to an aggregate amount equal to the
largest amount that would not render its obligations under this Agreement
subject to avoidance under Section 548 of the United States Bankruptcy Code
or any comparable provisions of any applicable state law.
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ARTICLE V
CLOSING; CONDITIONS OF CLOSING AND BORROWING
SECTION 5.1 CLOSING. The closing shall take place at the offices
of ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, L.L.P. in Charlotte, North Carolina
at 10:00 a.m. on March 31, 1999 or at such other place and on such other date
as the parties hereto shall mutually agree.
SECTION 5.2 CONDITIONS TO CLOSING AND INITIAL LOAN. The obligation
of the Lenders to close this Agreement and to make the initial Loan and of
the Issuing Lender to issue any Letter of Credit is subject to the
satisfaction of each of the following conditions:
(a) EXECUTED LOAN DOCUMENTS. This Agreement and the Notes, in form
and substance satisfactory to the Administrative Agent and each Lender shall
have been duly authorized, executed and delivered by the Borrower and each
other Credit Party, as applicable, shall be in full force and effect, no
Default or Event of Default shall exist, and the Borrower and each other
Credit Party, as applicable, shall have delivered original counterparts
thereof to the Administrative Agent.
(b) INSURANCE. The Administrative Agent shall have received
certificates of insurance and, if requested, certified copies of insurance
policies in the form required under Section 8.3 and otherwise in form and
substance reasonably satisfactory to the Administrative Agent.
(c) TITLE INSURANCE. The Administrative Agent shall have received a
copy of the owner's or leasehold title insurance policy, or a binding
commitment for the issuance of such policy, with respect to each Eligible
Property.
(d) CLOSING CERTIFICATES; ETC.
(i) CERTIFICATE OF GTA. The Administrative Agent shall have
received a certificate from the chief executive officer or chief financial
officer of GTA, in form and substance reasonably satisfactory to the
Administrative Agent, to the effect that all representations and
warranties of the Credit Parties contained in this Agreement and the other
Loan Documents are true, correct and complete to the best knowledge of
such Person; that to the best knowledge of such Person none of the Credit
Parties is in violation of any of the covenants contained in this
Agreement and the other Loan Documents; that, after giving effect to the
transactions contemplated by this Agreement, no Default or Event of
Default has occurred and is continuing; and that to the best knowledge of
such Person the Borrower has satisfied each of the closing conditions.
(ii) CERTIFICATE OF SECRETARY OF THE GENERAL PARTNER. The
Administrative Agent shall have received a certificate of the secretary or
assistant secretary of GTA GP, in its capacity as the Managing General
Partner of the Borrower certifying on behalf of the Borrower that attached
thereto is a true and complete copy of the Certificate of Limited
Partnership of the Borrower and all amendments thereto, certified as of a
recent date by the appropriate Governmental Authority in its jurisdiction
of
39
formation and a true and complete copy of the Agreement of Limited
Partnership of the Borrower and all amendments thereto; that attached
thereto is a true and complete copy of resolutions duly adopted by the
Board of Directors of GTA GP authorizing the execution, delivery and
performance of the Loan Documents to which the Borrower is a party; and as
to the incumbency and genuineness of the signature of each officer of GTA
GP executing Loan Documents to which the Borrower is a party.
(iii) CERTIFICATE OF SECRETARY OF EACH GUARANTOR. The
Administrative Agent shall have received a certificate of the secretary or
assistant secretary of each Guarantor certifying that attached thereto is
a true and complete copy of the articles of incorporation of such
Guarantor and all amendments thereto, certified as of a recent date by the
appropriate Governmental Authority in its jurisdiction of incorporation;
that attached thereto is a true and complete copy of the bylaws of such
Guarantor as in effect on the date of such certification; that attached
thereto is a true and complete copy of resolutions duly adopted by the
Board of Directors of such Guarantor authorizing the borrowings
contemplated under this Agreement and the execution, delivery and
performance of this Agreement and the other Loan Documents to which it is
a party; and as to the incumbency and genuineness of the signature of each
officer of such Guarantor executing Loan Documents to which it is a party.
(iv) CERTIFICATES OF EXISTENCE. The Administrative Agent shall
have received long-form certificates as of a recent date of the good
standing of the Borrower and each Guarantor under the laws of its
jurisdiction of organization and each other jurisdiction where such Person
is qualified to do business and a certificate of the relevant taxing
authorities of such jurisdictions certifying that such Person has filed
required tax returns and owes no delinquent taxes.
(v) OPINIONS OF COUNSEL. The Administrative Agent shall have
received favorable opinions of counsel to the Credit Parties addressed to
the Administrative Agent and the Lenders with respect to the Credit
Parties, the Loan Documents and such other matters as the Lenders shall
reasonably request.
(vi) TAX FORMS. The Administrative Agent shall have received
copies of the United States Internal Revenue Service forms required by
Section 3.13(d) of this Agreement.
(vii) POOL VALUATION CERTIFICATE. The Administrative Agent shall
have received a Pool Valuation Certificate properly completed and executed
by the Borrower, setting forth the Pool Value, the amount of which shall
be equal to or greater than 1.75 times the aggregate amount of all
unsecured Debt of the Credit Parties (including the amount of the
outstanding Obligations (after giving effect to the Loans to be advanced
to the Borrower and Letters of Credit to be issued on the Closing Date).
(e) CONSENTS; DEFAULTS.
(i) GOVERNMENTAL AND THIRD PARTY APPROVALS. All necessary
approvals, authorizations and consents, if any be required, of any Person
and of all Governmental
40
Authorities and courts having jurisdiction with respect to the
transactions contemplated by this Agreement and the other Loan Documents
shall have been obtained.
(ii) NO INJUNCTION, ETC. No action, proceeding, investigation,
regulation or legislation shall have been instituted, threatened or
proposed before any Governmental Authority to enjoin, restrain, or
prohibit, or to obtain substantial damages in respect of, or which is
related to or arises out of this Agreement or the other Loan Documents or
the consummation of the transactions contemplated hereby or thereby, or
which, in the Administrative Agent's reasonable discretion, would make it
inadvisable to consummate the transactions contemplated by this Agreement
and such other Loan Documents.
(iii) NO EVENT OF DEFAULT. No Default or Event of Default shall
have occurred and be continuing.
(f) FINANCIAL STATEMENTS. The Administrative Agent shall have
received the most recent audited Consolidated financial statements of the
Credit Parties, all in form and substance satisfactory to the Administrative
Agent.
(g) PAYMENT AT CLOSING; FEE LETTER. There shall have been paid by
the Borrower to the Administrative Agent and the Lenders the fees set forth
or referenced in Section 3.3 and any other accrued and unpaid fees or
commissions due under this Agreement (including, without limitation, legal
fees and expenses), and to any other Person such amount as may be due thereto
in connection with the transactions contemplated hereby, including all taxes,
fees and other charges in connection with the execution, delivery, recording,
filing and registration of any of the Loan Documents. The Administrative
Agent shall have received duly authorized and executed copies of the fee
letter agreement referred to in Section 3.3(b).
(h) MISCELLANEOUS.
(i) NOTICE OF BORROWING. The Administrative Agent shall have
received a Notice of Borrowing from the Borrower and identification of the
account or accounts into which the proceeds of such Loans are to be
disbursed.
(ii) PROCEEDINGS AND DOCUMENTS. All opinions, certificates and
other instruments and all proceedings in connection with the transactions
contemplated by this Agreement shall be reasonably satisfactory in form
and substance to the Lenders. The Lenders shall have received copies of
all other instruments and other evidence as the Lenders may reasonably
request, in form and substance reasonably satisfactory to the Lenders,
with respect to the transactions contemplated by this Agreement and the
taking of all actions in connection therewith.
(iii) DUE DILIGENCE AND OTHER DOCUMENTS. The Borrower shall have
delivered to the Administrative Agent such other documents, certificates
and opinions as the Administrative Agent reasonably requests, certified by
a secretary or assistant secretary of GTA, in its capacity as the
Borrower's managing general partner, as a true and correct copy thereof.
41
SECTION 5.3 CONDITIONS TO ALL LOANS. The obligation of the Lenders to
make any Loan and the obligation of the Issuing Lender to issue any Letter of
Credit are subject to the satisfaction of the following conditions precedent
on the relevant borrowing or issuance date:
(a) CONTINUATION OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties contained in Article VI shall be true and
correct in all material respects, and shall be deemed to be remade, on and as
of such borrowing date with the same effect as if made on and as of such date.
(b) NO EXISTING DEFAULT. No Default or Event of Default shall have
occurred and be continuing under this Agreement (i) on the borrowing date
with respect to such Loan or after giving effect to the Loans to be made on
such date or (ii) on the issue date with respect to any Letter of Credit or
after giving effect to such Letter of Credit on such date.
(c) OFFICER'S COMPLIANCE CERTIFICATE; ADDITIONAL DOCUMENTS. The
Administrative Agent shall have received the current Officer's Compliance
Certificate and each additional document, instrument, legal opinion or other
item of information reasonably requested by it.
(d) AVAILABILITY. After giving effect to the requested Loan or
Letter of Credit, the outstanding Extensions of Credit will not exceed (i)
with respect to a Loan, the amount available pursuant to Section 2.1 and (ii)
with respect to a Letter of Credit, the amount available pursuant to Section
2A.1.
(e) POOL VALUATION CERTIFICATE. The Administrative Agent shall have
received a Pool Valuation Certificate properly completed and executed by the
Borrower, setting forth the Pool Value, the amount of which shall be equal to
or greater than 1.75 times the aggregate amount of all unsecured Debt of the
Credit Parties (including the amount of all Obligations outstanding after
giving effect to the requested Loan or Letter of Credit).
ARTICLE VI
REPRESENTATIONS AND WARRANTIES
SECTION 6.1 REPRESENTATIONS AND WARRANTIES. To induce the
Administrative Agent to enter into this Agreement and the Lenders to make the
Loans and issue or participate in the Letters of Credit, the Credit Parties
hereby represent and warrant to the Administrative Agent and the Lenders that:
(a) ORGANIZATION; POWER; QUALIFICATION. Each of the Credit Parties
is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation or formation, has the power and
authority to own its properties and to carry on its business as now being and
hereafter proposed to be conducted and is duly qualified and authorized to do
business in each jurisdiction in which the character of its properties or the
nature of its business requires such qualification and authorization and in
which the failure to
42
qualify would have a Material Adverse Effect. The jurisdictions in which the
Credit Parties are qualified to do business are described on SCHEDULE 6.1(a).
(b) OWNERSHIP. The Subsidiaries of the Borrower are set forth on
SCHEDULE 6.1(b). GTA owns no Subsidiary other than GTA GP, GTA LP and the
Borrower. Neither GTA GP nor GTA LP owns any Subsidiary other than the
Borrower. The capitalization of the Guarantors is described on SCHEDULE
6.1(b). All outstanding shares of stock of the Guarantors have been duly
authorized and validly issued and are fully paid and nonassessable.
(c) AUTHORIZATION OF AGREEMENT, LOAN DOCUMENTS AND BORROWING. Each
of the Credit Parties has the right, power and authority and has taken all
necessary action to authorize the execution, delivery and performance of this
Agreement and each of the other Loan Documents to which it is a party and the
borrowings hereunder and the transactions contemplated hereby and thereby, in
each case in accordance with their respective terms. This Agreement and each
of the other Loan Documents have been duly executed and delivered by the duly
authorized officers of each Guarantor and of the duly authorized general
partner of the Borrower, and each such document constitutes the legal, valid
and binding obligation of each of the Credit Parties, to the best of its
knowledge, enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar state or federal debtor relief laws from time to time
in effect which affect the enforcement of creditors' rights in general and
the availability of equitable remedies.
(d) COMPLIANCE OF AGREEMENT, LOAN DOCUMENTS AND BORROWING WITH
LAWS, ETC. The execution, delivery and performance by each of the Credit
Parties of the Loan Documents to which such Person is a party, in accordance
with their respective terms, the borrowings under this Agreement and the
transactions contemplated hereby and thereby do not and will not, by the
passage of time, the giving of notice or otherwise, (i) require any
Governmental Approval or violate any Applicable Law relating to any Credit
Party, (ii) conflict with, result in a breach of or constitute a default
under the agreement of limited partnership of the Borrower, the articles of
incorporation, bylaws or other organizational documents of any Guarantor or
any indenture, agreement or other instrument to which any Credit Party is a
party or by which any of its properties may be bound or any Governmental
Approval relating to any Credit Party, or (iii) result in or require the
creation or imposition of any Lien upon or with respect to any property now
owned or hereafter acquired by any Credit Party other than Liens arising
under the Loan Documents.
(e) COMPLIANCE WITH LAW; GOVERNMENTAL APPROVALS. Each of the Credit
Parties, to the best of its knowledge, (i) has all material Governmental
Approvals required by any Applicable Law for it to conduct its business, each
of which is in full force and effect, is final and not subject to review on
appeal and is not the subject of any pending or, to the best of its
knowledge, threatened attack by direct or collateral proceeding, and (ii) is
in compliance with each Governmental Approval applicable to it and in
compliance with all other Applicable Laws relating to it or any of its
respective properties, to the extent such failure to comply would have a
Material Adverse Effect on the Credit Parties.
(f) TAX RETURNS AND PAYMENTS. Each of the Credit Parties has duly
filed (or will duly file in accordance with
43
Applicable Laws) or caused (or will cause in accordance with Applicable Laws)
to be filed all federal, state, local and other tax returns required by
Applicable Law (including the provisions of the Code and the regulations
thereunder relating to "real estate investment trusts") to be filed, and has
paid (or will pay in accordance with Applicable Laws), or made adequate
provision for the payment of, all federal, state, local and other taxes,
assessments and governmental charges or levies upon it and its property,
income, profits and assets which are due and payable. No Governmental
Authority has asserted any Lien or other claim against any Credit Party with
respect to unpaid taxes which has not been discharged or resolved. The
charges, accruals and reserves on the books of each of the Credit Parties in
respect of federal, state, local and other taxes for all Fiscal Years and
portions thereof since the organization of each Credit Party are in the
judgment of such Person adequate, and such Person does not anticipate any
additional taxes or assessments for any of such years.
(g) ENVIRONMENTAL MATTERS.
(i) The golf course properties of the Credit Parties do not
contain, and to its knowledge have not previously contained, any Hazardous
Materials in amounts or concentrations which (A) constitute or constituted
a violation of, or (B) could give rise to liability under, applicable
Environmental Laws, except as otherwise set forth in the Environmental
Assessment Reports;
(ii) The golf course properties of the Credit Parties and all
operations conducted in connection therewith are in compliance, and have
been in compliance, with all applicable Environmental Laws, and there is
no contamination at, under or about such golf course properties or such
operations which could interfere with the continued operation of such golf
course properties or impair the fair saleable value thereof, except as
otherwise set forth in the Environmental Assessment Reports;
(iii) No Credit Party has received any notice of violation,
alleged violation, non-compliance, liability or potential liability
regarding environmental matters or compliance with Environmental Laws
with regard to any golf course property or the operations conducted in
connection therewith, nor does any Credit Party have knowledge or reason
to believe that any such notice will be received or is being threatened,
except as otherwise set forth in the Environmental Assessment Reports;
(iv) Hazardous Materials have not been transported or disposed of
from the golf course properties of any Credit Party in violation of, or in
a manner or to a location which could give rise to liability under,
applicable Environmental Laws, nor have any Hazardous Materials been
generated, treated, stored or disposed of at, on or under any of such golf
course properties in violation of, or in a manner that could give rise to
liability under, any applicable Environmental Laws, except as otherwise
set forth in the Environmental Assessment Reports;
(v) No judicial proceedings or governmental or administrative
action is pending, or, to the knowledge of any Credit Party, threatened,
under any applicable Environmental Law to which any Credit Party is or
will be named as a party with respect to such golf course properties or
operations conducted in connection therewith, nor are there any consent
decrees or other decrees, consent orders, administrative orders
44
or other orders, or other administrative or judicial requirements
outstanding under any applicable Environmental Law with respect to such
golf course properties or such operations, except as set forth in the
Environmental Assessment Reports; and
(vi) There has been no release, or to the best of any Credit
Party's knowledge, the threat of release, of Hazardous Materials at or
from such properties, in violation of or in amounts or in a manner that
could give rise to liability under applicable Environmental Laws, except
as set forth in the applicable Environmental Assessment Reports.
(h) ERISA.
(i) Neither the Borrower nor any ERISA Affiliate maintains or
contributes to, or has any obligation under, any Employee Benefit Plans
other than those identified on SCHEDULE 6.1(h);
(ii) the Borrower and each ERISA Affiliate is in material
compliance with all applicable provisions of ERISA and the regulations
and published interpretations thereunder with respect to all Employee
Benefit Plans except for any required amendments for which the remedial
amendment period as defined in Section 401(b) of the Code has not yet
expired. Each Employee Benefit Plan that is intended to be qualified under
Section 401(a) of the Code has been determined by the Internal Revenue
Service to be so qualified, and each trust related to such plan has been
determined to be exempt under Section 501(a) of the Code. No liability has
been incurred by the Borrower or any ERISA Affiliate which remains
unsatisfied for any taxes or penalties with respect to any Employee
Benefit Plan or any Multiemployer Plan;
(iii) No Pension Plan has been terminated, nor has any accumulated
funding deficiency (as defined in Section 412 of the Code) been incurred
(without regard to any waiver granted under Section 412 of the Code), nor
has any funding waiver from the Internal Revenue Service been received or
requested with respect to any Pension Plan, nor has the Borrower or any
ERISA Affiliate failed to make any contributions or to pay any amounts due
and owing as required by Section 412 of the Code, Section 302 of ERISA or
the terms of any Pension Plan prior to the due dates of such contributions
under Section 412 of the Code or Section 302 of ERISA, nor has there been
any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a)
of ERISA with respect to any Pension Plan;
(iv) Neither the Borrower nor any ERISA Affiliate has:
(A) engaged in a nonexempt prohibited transaction described in Section 406
of the ERISA or Section 4975 of the Code, (B) incurred any liability to
the PBGC which remains outstanding other than the payment of premiums and
there are no premium payments which are due and unpaid, (C) failed to make
a required contribution or payment to a Multiemployer Plan, or (D) failed
to make a required installment or other required payment under Section 412
of the Code;
45
(v) No Termination Event has occurred or is reasonably expected
to occur; and
(vi) No proceeding, claim, lawsuit and/or investigation is
existing or, to the best knowledge of the Borrower after due inquiry,
threatened concerning or involving any (A) employee welfare benefit plan
(as defined in Section 3(1) of ERISA) currently maintained or contributed
to by the Borrower or any ERISA Affiliate, (B) Pension Plan, or
(C) Multiemployer Plan.
(i) ELIGIBLE PROPERTIES. With respect to each Eligible Property as
of the date hereof and as of the date of each Pool Value Certificate:
(i) No portion of any improvements on any such Eligible Property
is located in an area identified on a flood hazard map or flood insurance
rate map issued by the Secretary of Housing and Urban Development or the
Federal Emergency Management Agency, or any successor thereto, as a
special flood hazard area, or, if located within any such area, the
Borrower has obtained and will maintain on such Eligible Property an
appropriate flood insurance policy meeting the requirements of the
National Flood Insurance Program.
(ii) To the Borrower's knowledge, each such Eligible Property and
the development, use and occupancy thereof are in material compliance
with all applicable zoning ordinances (without reliance upon adjoining or
other properties), building codes, land use and Environmental Laws and
other laws regulating the development, use and occupancy of real property
and applicable to such Eligible Property.
(iii) Each such Eligible Property is served by all utilities
required for the current and contemplated uses thereof. All utility
service is provided by public utilities and such Eligible Property has
accepted or is equipped to accept such utility service.
(iv) All public roads and streets necessary for service of and
access to each such Eligible Property for the current or contemplated use
thereof have been completed, are serviceable and all-weather and are
physically and legally open for use by the public.
(v) Each such Eligible Property is served by public water and
sewer systems. All liquid and solid waster disposal, septic and sewer
systems located on each such Eligible Property are in a good and safe
condition and repair and are in compliance with all Applicable Laws with
respect to such systems.
(vi) Each such Eligible Property is free of any patent or, to the
best knowledge of the Credit Parties, latent structural or other material
defect or deficiency. Each Eligible Property is free of damage and waste
that would materially and adversely affect its value, is in good repair
and there is no deferred maintenance other than ordinary wear and tear.
Each such Eligible Property is free from damage caused by fire or other
casualty. There is no pending or, to the best knowledge of the Credit
46
Parties after due inquiry, threatened condemnation proceedings affecting
any such Eligible Property, or any material part thereof.
(vii) All improvements on each such Eligible Property lie within
the boundaries and building restrictions of the legal description of
record of such Eligible Property and no such improvements encroach upon
any adjoining property, other than encroachments for which the applicable
Credit Party has obtained a written waiver from the owner of the
adjoining property or permit from the appropriate Governmental Authority,
which permit or waiver is in form and substance satisfactory to the
Administrative Agent. No improvements on adjoining properties encroach
upon such Eligible Property or easements benefiting such Eligible
Property. All amenities, access routes or other items that benefit such
Eligible Property are under direct control of the applicable Credit
Party, constitute permanent or non-terminable easements that benefit all
or part of such Eligible Property or are public property, and such
Eligible Property, by virtue of such easements or otherwise, is
contiguous to a physically open, dedicated all weather public street, and
has the necessary permits for ingress and egress.
(viii) There are no delinquent taxes, ground rents, water charges,
sewer rents, assessments, insurance premiums, leasehold payments, or
other outstanding charges affecting any such Eligible Property, except to
the extent such items are being contested in good faith by appropriate
proceedings and as to which adequate reserves have been provided.
(j) MARGIN STOCK. The Borrower is not engaged principally or as one
of its activities in the business of extending credit for the purpose of
"purchasing" or "carrying" any "margin stock" (as each such term is defined
or used in Regulations G and U of the Board of Governors of the Federal
Reserve System). No part of the proceeds of any of the Loans or the Letters
of Credit will be used for purchasing or carrying margin stock or for any
purpose which violates, or which would be inconsistent with, the provisions
of Regulation T, U or X of such Board of Governors.
(k) GOVERNMENT REGULATION. The Borrower is not an "investment
company" or a company "controlled" by an "investment company" (as each such
term is defined or used in the Investment Company Act of 1940, as amended)
and neither the Borrower nor any Subsidiary thereof is, or after giving
effect to any Extension of Credit will be, subject to regulation under the
Public Utility Holding Company Act of 1935 or the Interstate Commerce Act,
each as amended, or any other Applicable Law which limits its ability to
incur or consummate the transactions contemplated hereby.
(l) MATERIAL CONTRACTS. SCHEDULE 6.1(l) sets forth a complete and
accurate list of all Material Contracts of the Credit Parties in effect as of
the Closing Date not listed on any other Schedule hereto; other than as set
forth in SCHEDULE 6.1(l), each such Material Contract is, and after giving
effect to the consummation of the transactions contemplated by the Loan
Documents will be, to the best of each Credit Party's knowledge, in full
force and effect in accordance with the terms thereof. The Borrower has
delivered to the Administrative Agent a true and complete copy of each
Material Contract required to be listed on SCHEDULE 6.1(l).
47
(m) FINANCIAL STATEMENTS. The (i) audited Consolidated balance sheet of
the Credit Parties as of December 31, 1997 and the related statements of income
and retained earnings and cash flows for the period then ended and (ii)
unaudited Consolidated balance sheet of the Credit Parties as of September 30,
1998 and related unaudited interim statements of revenue and retained earnings,
copies of which have been furnished to the Administrative Agent and each Lender,
are, and all financial statements hereafter delivered to the Administrative
Agent or any Lender, whether pursuant to Article VII or otherwise, shall be,
complete and correct in all material respects and fairly present the assets,
liabilities (including, without limitation, material contingent liabilities) and
financial position of the Credit Parties as at such dates, and the results of
the operations and changes of financial position for the periods then ended. All
such financial statements, including the related schedules and notes thereto,
have been, or will be, as the case may be, prepared in accordance with GAAP. The
Credit Parties have and shall have no Debt, obligation or other unusual forward
or long-term commitment which is not fairly reflected in the foregoing financial
statements or in the notes thereto.
(n) NO MATERIAL ADVERSE CHANGE. Since December 31, 1997 there has been no
material adverse change in the properties, business, operations, prospects, or
condition (financial or otherwise) of the Credit Parties and no event has
occurred or condition arisen that could reasonably be expected to have a
Material Adverse Effect.
(o) SOLVENCY. As of the Closing Date and after giving effect to each
Extension of Credit made under this Agreement, each of the Credit Parties will
be Solvent.
(p) TITLES TO PROPERTIES. Each Credit Party has such title to the real
property owned by it as is necessary or desirable to the conduct of its business
and valid and legal title to all of its personal property and assets, including,
but not limited to, those reflected on the Consolidated balance sheet of the
Credit Parties delivered pursuant to Section 6.1(m), except those which have
been disposed of by the Credit Parties subsequent to such date, which
dispositions have been in the ordinary course of business or as otherwise
expressly permitted under this Agreement.
(q) LIENS. None of the properties and assets of any Credit Party is
subject to any Lien, except Permitted Liens that are more specifically
identified on Schedule 6.1(q). No financing statement under the Uniform
Commercial Code of any state which names any Credit Party or any of its trade
names or divisions as debtor and which has not been terminated, has been filed
in any state or other jurisdiction and no Credit Party has signed any such
financing statement or any security agreement authorizing any secured party
thereunder to file any such financing statement, except to perfect those Liens
permitted by Section 10.3.
(r) DEBT AND CONTINGENT OBLIGATIONS. SCHEDULE 6.1(r) is a complete and
correct listing of all existing Debt and Contingent Obligations of the Credit
Parties. The Credit Parties have performed and are in compliance with all of the
terms of such Debt and Contingent Obligations and all instruments and agreements
relating thereto, and no default or event of default, or event or condition
which with notice or lapse of time or both would constitute such a default or
event of default on the part of any Credit Party exists with respect to any such
Debt or Contingent Obligation.
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(s) LITIGATION. Except as set forth on SCHEDULE 6.1(s), there are no
actions, suits or proceedings pending after service on any of the Credit Parties
nor, to the knowledge of the Credit Parties, threatened against or in any other
way relating adversely to or affecting any of the Credit Parties or any of their
properties in any court or before any arbitrator of any kind or before or by any
Governmental Authority.
(t) ABSENCE OF DEFAULTS. No event has occurred or is continuing which
constitutes a Default or an Event of Default, or which constitutes, or which
with the passage of time or giving of notice or both would constitute, a default
or event of default by any Credit Party under any Material Contract or judgment,
decree or order to which any Credit Party is a party or by which such Credit
Party or any of its properties may be bound or which would require such Credit
Party to make any payment thereunder prior to the scheduled maturity date
therefor.
(u) ACCURACY AND COMPLETENESS OF INFORMATION. All written information,
reports and other papers and data prepared by or on behalf of the Credit Parties
and furnished to the Lenders were, at the time the same were so furnished,
complete and correct in all respects to the extent necessary to give the
recipient a true and accurate knowledge of the subject matter. No such document
furnished or written statement made to the Administrative Agent or the Lenders
by the Credit Parties in connection with the negotiation, preparation or
execution of this Agreement or any of the Loan Documents contains or will
contain any untrue statement of a fact material to the creditworthiness of the
Borrower or omits or will omit to state a material fact necessary in order to
make the statements contained therein not misleading. None of the Credit Parties
is aware of any facts which it has not disclosed in writing to the
Administrative Agent having a Material Adverse Effect, or insofar as such Person
can now foresee, could reasonably be expected to have a Material Adverse Effect.
(v) JUDGMENTS. There are no judgments or orders for the payment of money
outstanding against any Credit Party.
(w) PARTICIPATING LEASES/INNISBROOK DOCUMENTS. To the best knowledge of
the Credit Parties, and except with respect to the Osage National Participating
Lease, no monetary default, and no non-monetary default which would have a
material adverse effect on the enforcement thereof, exists under any
Participating Lease or under the Innisbrook Note, the Innisbrook Loan Agreement
or the Innisbrook Mortgage.
SECTION 6.2 SURVIVAL OF REPRESENTATIONS AND WARRANTIES, ETC. All
representations and warranties set forth in this Article VI and all
representations and warranties contained in any certificate, or any of the Loan
Documents (including, but not limited to, any such representation or warranty
made in or in connection with any amendment thereto) shall constitute
representations and warranties made under this Agreement. All representations
and warranties made under this Agreement shall be made or deemed to be made at
and as of the Closing Date and at and as of the date of each Loan and each
issuance of a Letter of Credit, shall survive the Closing Date and the date of
each such Loan and issuance, and shall not be waived by the execution and
delivery of this Agreement, any investigation made by or on behalf of the
Lenders or any borrowing under this Agreement.
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ARTICLE VII
FINANCIAL INFORMATION AND NOTICES
Until all the Obligations have been paid and satisfied in full and the
Commitments terminated, unless consent has been obtained in the manner set forth
in Section 13.11, the Credit Parties will furnish or cause to be furnished to
the Lenders at their respective addresses as set forth on SCHEDULE 1, or such
other office as may be designated by the Lenders from time to time:
SECTION 7.1 FINANCIAL STATEMENTS.
(a) QUARTERLY FINANCIAL STATEMENTS. As soon as practicable and in any
event within forty-five (45) days after the end of each fiscal quarter, an
unaudited Consolidated balance sheet of GTA and the other Credit Parties as of
the close of such fiscal quarter and unaudited Consolidated statements of
income, retained earnings and cash flows for the fiscal quarter then ended and
that portion of the Fiscal Year then ended, including the notes thereto, all in
reasonable detail setting forth in comparative form the corresponding figures
for the preceding Fiscal Year and prepared by GTA in accordance with GAAP and,
if applicable, containing disclosure of the effect on the financial position or
results of operations of any change in the application of accounting principles
and practices during the period, and certified by the chief financial officer of
GTA to present fairly in all material respects the financial condition of GTA
and the other Credit Parties as of their respective dates and the results of
operations of GTA and the other Credit Parties for the respective periods then
ended, subject to normal year end adjustments.
(b) ANNUAL FINANCIAL STATEMENTS. As soon as practicable and in any event
within one hundred twenty (120) days after the end of each Fiscal Year, an
audited Consolidated balance sheet of GTA and the other Credit Parties as of the
close of such Fiscal Year and audited Consolidated statements of income,
retained earnings and cash flows for the Fiscal Year then ended, including the
notes thereto, all in reasonable detail setting forth in comparative form the
corresponding figures as of the end of and for the preceding Fiscal Year and
prepared in accordance with GAAP and, if applicable, containing disclosure of
the effect on the financial position or results of operation of any change in
the application of accounting principles and practices during the year, and
accompanied by a report thereon by an independent certified public accounting
firm that is not qualified with respect to scope limitations imposed by GTA and
the other Credit Parties or any of its Subsidiaries or with respect to
accounting principles followed by GTA and the other Credit Parties not in
accordance with GAAP or with respect to the financial impact of, or failure to
take all appropriate steps to successfully address, year 2000 issues.
SECTION 7.2 OFFICER'S COMPLIANCE CERTIFICATE. At each time financial
statements are delivered pursuant to Section 7.1 (a) or (b) and at such other
times as the Administrative Agent shall reasonably request, a certificate of the
chief financial officer or the treasurer of GTA in the form of EXHIBIT E
attached hereto (an "Officer's Compliance Certificate").
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SECTION 7.3 ACCOUNTANTS' CERTIFICATE. At each time financial statements
are delivered pursuant to Section 7.1(b), a certificate of the Borrower's
independent public accountants certifying such financial statements addressed to
the Administrative Agent for the benefit of the Lenders:
(a) stating that in making the examination necessary for the certification
of such financial statements, they obtained no knowledge of any Default or Event
of Default or, if such is not the case, specifying such Default or Event of
Default and its nature and period of existence;
(b) including the calculations prepared by such independent public
accountants required to establish whether or not the Credit Parties are in
compliance with the financial covenants set forth in Article IX of this
Agreement as at the end of each respective period; and
(c) including a fully executed copy of a letter from such accountants to
GTA expressly authorizing the Lenders to rely on the examination and report of
such independent public accountants with respect to the audited financial
statements of the Credit Parties as of and for such Fiscal Year then ending.
SECTION 7.4 OTHER REPORTS.
(a) Within thirty (30) days after transmission thereof, copies of all
financial statements, proxy statements, reports and any other general written
communications which the Borrower sends to its stockholders and copies of all
registration statements and all regular, special or periodic reports which GTA
files with the Securities and Exchange Commission (including each report made on
Form 8-K, 10-Q and 10-K) or with any securities exchange on which any of its
securities are then listed, and copies of all press releases and other
statements made available generally by GTA to the public; and
(b) Such other information regarding the operations, business affairs and
financial condition of the Credit Parties as the Administrative Agent or any
Lender may reasonably request.
SECTION 7.5 NOTICE OF LITIGATION AND OTHER MATTERS. Prompt (but in no
event later than thirty (30) days after an executive officer of GTA obtains
knowledge thereof) telephonic and written notice of:
(a) the commencement of all material proceedings and material
investigations by or before any Governmental Authority and all actions and
proceedings in any court or before any arbitrator against or involving any
Credit Party or any of their respective properties, assets or businesses
exceeding $250,000;
(b) any notice of any material violation received by any Credit Party from
any Governmental Authority including, without limitation, any notice of material
violation of Environmental Laws;
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(c) any material labor controversy that has resulted in, or threatens to
result in, a strike or other work action against any Credit Party;
(d) any attachment, judgment, lien, levy or order exceeding $250,000 that
may be assessed against or threatened against any Credit Party;
(e) (i) any Default or Event of Default, or (ii) any event which
constitutes or which with the passage of time or giving of notice or both would
constitute a default or event of default under any Material Contract to which
any Credit Party is a party or by which any Credit Party or any of their
respective properties may be bound;
(f) (i) any unfavorable determination letter from the Internal Revenue
Service regarding the qualification of an Employee Benefit Plan under Section
401(a) of the Code (along with a copy thereof), (ii) all written notices
received by any Credit Party or any ERISA Affiliate of the PBGC's intent to
terminate any Pension Plan or to have a trustee appointed to administer any
Pension Plan, (iii) all written notices received by any Credit Party or any
ERISA Affiliate from a Multi-employer Plan sponsor concerning the imposition or
amount of withdrawal liability pursuant to Section 4202 of ERISA, and (iv) any
Credit Party obtaining written notice that any Credit Party or any ERISA
Affiliate has filed or intends to file a notice of intent to terminate any
Pension Plan under a distress termination within the meaning of Section 4041(c)
of ERISA;
(g) promptly after receipt thereof, any written communication from the
Internal Revenue Service which challenges GTA's status as a "real estate
investment trust" within the meaning of Section 856 of the Code;
(h) any event which makes any of the representations set forth in Section
6.1 inaccurate in any material respect; and
(i) any monetary default, or non-monetary default which would have a
material adverse effect on the enforcement thereof, under any Participating
Lease or the Innisbrook Note or Innisbrook Mortgage.
SECTION 7.6 ACCURACY OF INFORMATION. All written information, reports,
statements and other papers and data furnished by or on behalf of any Credit
Party to the Administrative Agent or any Lender (other than financial forecasts)
respecting any Credit Party whether pursuant to this Article VII or any other
provision of this Agreement, or any of the Security Documents, shall be, at the
time the same is so furnished, to the best of such Credit Party's knowledge,
complete and correct in all material respects to the extent necessary to give
the Administrative Agent or any Lender complete, true and accurate knowledge of
the subject matter based on the Credit Party's knowledge thereof.
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ARTICLE VIII
AFFIRMATIVE COVENANTS
Until all of the Obligations have been paid and satisfied in full and the
Commitments terminated, unless consent has been obtained in the manner provided
for in Section 13.11, each Credit Party will, and will cause each of its
Subsidiaries to:
SECTION 8.1 PRESERVATION OF EXISTENCE AND RELATED MATTERS. Preserve
and maintain its separate corporate or partnership existence, as applicable,
and all rights, franchises, licenses and privileges necessary to the conduct
of its business, and qualify and remain qualified as a foreign corporation or
partnership and authorized to do business in each jurisdiction in which the
failure to so qualify would have a Material Adverse Effect.
SECTION 8.2 MAINTENANCE OF PROPERTY. Protect and preserve all
properties useful in and material to its business, including copyrights,
patents, trade names and trademarks and service marks; maintain in good
working order and condition all buildings, equipment and other tangible real
and personal property; and from time to time make or cause to be made all
renewals, replacements and additions to such property necessary for the
conduct of its business, so that the business carried on in connection
therewith may be properly and advantageously conducted at all times.
SECTION 8.3 INSURANCE.
(a) Keep its insurable properties adequately insured at all times;
maintain such other insurance, to such extent and against such risks, including
fire and other risks insured against by extended coverage, as is customary with
similarly-situated companies in the same or similar businesses and maintain such
other insurance as may be required by Applicable Law, in each case with
financially sound and reputable insurers reasonably acceptable to the
Administrative Agent.
(b) Require each lessee, pursuant to the related Participating Lease, and
the Borrower under the Innisbrook Mortgage, to maintain comprehensive public
liability insurance with amounts of coverage of not less than $3,000,000 per
occurrence and in the aggregate.
(c) On the Closing Date and from time to time thereafter deliver to the
Administrative Agent upon its request a detailed list of the insurance then in
effect, stating the names of the insurance companies, the amounts and rates of
the insurance, the dates of the expiration thereof and the properties and risks
covered thereby.
SECTION 8.4 ACCOUNTING METHODS AND FINANCIAL RECORDS. Maintain a
system of accounting, and keep such books, records and accounts (which shall
be true and complete in all material respects) as may be required or as may
be necessary to permit the preparation of financial statements in accordance
with GAAP and in compliance with the regulations of any Governmental
Authority having jurisdiction over it or any of its properties.
SECTION 8.5 PAYMENT AND PERFORMANCE OF OBLIGATIONS. Pay and perform
all Obligations under this Agreement and the other Loan Documents, and pay or
perform (a) all
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taxes, assessments and other governmental charges that may be levied or
assessed upon it or any of its property, and (b) all other indebtedness,
obligations and liabilities in accordance with customary trade practices;
PROVIDED, that each Credit Party may contest any item described in this
Section 8.5(a) in good faith so long as adequate reserves are maintained with
respect thereto in accordance with GAAP.
SECTION 8.6 COMPLIANCE WITH LAWS AND APPROVALS. Observe and remain in
compliance with all Applicable Laws and maintain in full force and effect all
Governmental Approvals, in each case applicable to the conduct of its
business.
SECTION 8.7 ENVIRONMENTAL LAWS. In addition to and without limiting
the generality of Section 8.6, (i) comply with, and ensure such compliance by
all tenants and subtenants, if any, with, all applicable Environmental Laws
and obtain and comply with and maintain, and ensure that all tenants and
subtenants obtain and comply with and maintain, any and all licenses,
approvals, notifications, registrations or permits required by applicable
Environmental Laws, (ii) conduct and complete all investigations, studies,
sampling and testing, and all remedial, removal and other actions required
under Environmental Laws, and promptly comply with all lawful orders and
directives of any Governmental Authority regarding Environmental Laws, and
(iii) defend, indemnify and hold harmless the Administrative Agent and the
Lenders, and their respective parents, Subsidiaries, Affiliates, employees,
officers and directors, from and against any claims, demands, penalties,
fines, liabilities, settlements, damages, costs and expenses of whatever kind
or nature known or unknown, contingent or otherwise, arising out of, or in
any way relating to the violation of, noncompliance with or liability under
any Environmental Laws applicable to the operations of any Credit Party, or
any orders, requirements or demands of Governmental Authorities related
thereto, including, without limitation, reasonable and actually incurred
attorney's and consultant's fees, investigation and laboratory fees, response
costs, court costs and litigation expenses, except to the extent that any of
the foregoing directly result from the gross negligence or willful misconduct
of the party seeking indemnification therefor.
SECTION 8.8 COMPLIANCE WITH ERISA. In addition to and without
limiting the generality of Section 8.6, (a) comply with all applicable
provisions of ERISA and the regulations and published interpretations
thereunder with respect to all Employee Benefit Plans, (b) not take any
action or fail to take action the result of which could be a liability to the
PBGC or to a Multi-employer Plan, (c) not participate in any prohibited
transaction that could result in any civil penalty under ERISA or tax under
the Code, (d) operate each Employee Benefit Plan in such a manner that will
not incur any tax liability under Section 4980B of the Code or any liability
to any qualified beneficiary as defined in Section 4980B of the Code, and (e)
furnish to the Administrative Agent upon the Administrative Agent's request
such additional information about any Employee Benefit Plan as may be
reasonably requested by the Administrative Agent.
SECTION 8.9 COMPLIANCE WITH AGREEMENTS. Comply in all respects with
each term, condition and provision of all leases, agreements and other
instruments entered into in the conduct of its business including, without
limitation, any Participating Lease or Material Contract; PROVIDED, that each
Credit Party may contest any such lease, agreement or other instrument,
including, without limitation, any Material Contract, in good faith through
applicable proceedings so long as adequate reserves are maintained in
accordance with GAAP.
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SECTION 8.10 UNENCUMBERED POOL.
(a) OWNERSHIP OF ELIGIBLE PROPERTIES IN UNENCUMBERED POOL. The Borrower
will own at all times a minimum of seven (7) Eligible Properties (herein, the
"Unencumbered Pool"). The aggregate Property Value, determined in accordance
with Section 8.10(b), of the Eligible Properties in the Unencumbered Pool shall
at all times equal or exceed an amount equal to 1.75 times the aggregate amount
of unsecured Debt (including the Obligations hereunder) of the Credit Parties.
(b) DETERMINATION OF PROPERTY VALUE.
(i) UNENCUMBERED POOL. The Unencumbered Pool as of the date of this
Agreement, and the Property Value of each Eligible Property in the
Unencumbered Pool (as of the date of this Agreement) shall be as set forth
on SCHEDULE 8.10(b) hereto.
(ii) SUBSEQUENTLY-ACQUIRED ELIGIBLE PROPERTIES. The Property Value
of each Eligible Property, other than the Eligible Properties set forth on
SCHEDULE 8.10(b), shall equal the Purchase Price of such Eligible
Property; PROVIDED that (A) the Purchase Price is equal to or less than
that amount which would be derived using a capitalization rate of not less
than 9.00% (or conversely, a multiple not in excess of 11.11) based upon
the Adjusted NOI [EBITDA] for such property; and (B) Net Income Before
Coverage Ratio for such Eligible Property is at least 113.5% of the
Adjusted NOI [EBITDA] for such Eligible Property.
(iii) NON-CONFORMING ELIGIBLE PROPERTIES. The Property Value of each
Eligible Property which does not conform to the criteria set forth in
subsection (ii) above shall be determined as follows:
(A) The Property Value of any Eligible Property for which the
acquisition cost is determined upon the basis of a capitalization
rate lower than 9.00% (or conversely, a multiple in excess of 11.11)
shall be equal to the Adjusted NOI [EBITDA] for such property times
11.11 (I.E., that value which would be obtained by using a 9.00%
capitalization rate);
(B) The Property Value of any Eligible Property for which Net
Income Before Coverage Ratio is less than 113.5% of Adjusted NOI
[EBITDA], shall be determined by dividing Net Income Before Coverage
Ratio of such property by 113.5% and then dividing the resulting
number by the greater of (1) a capitalization rate of 9.00% or (2)
the actual capitalization rate used by the applicable Credit Party
in determining the acquisition cost of such property; PROVIDED,
HOWEVER, that upon the written request of the Borrower and delivery
to the Administrative Agent of financial statements for a period of
not less than 12 months showing that the Net Income Before Coverage
Ratio (for such period) from such Eligible Property is at least
113.5% of the corresponding Adjusted NOI [EBITDA], the Property
Value of such Eligible Property shall be equal to the lesser of (a)
its acquisition cost or (b) the value that would be determined
55
using paragraph (A), above; and PROVIDED, further, that the
Borrower shall not be entitled to request more than one adjustment
to the Property Value of any such Eligible Property.
(iv) LEGENDS OF VIRGINIA. The aggregate Property Value of the
Legends of Virginia Golf Courses shall be $20,000,000.
(c) POOL VALUATION CERTIFICATE. The Borrower shall deliver to the
Administrative Agent within forty-five (45) days after the end of each quarter a
Pool Valuation Certificate properly completed and executed by the Borrower,
setting forth the Pool Value as of the most recent quarter-end.
(d) EXCLUSION OF NON-PERFORMING OR DELINQUENT PROPERTIES.
(i) Any Eligible Property shall cease to be an Eligible Property and
shall no longer be included in the determination of the Pool Value if (A)
the Gross Golf Revenues for any Seasoned Eligible Property for the
two-quarter period ending on the last day of the quarterly period covered
by any Pool Valuation Certificate are less than eighty-five percent (85%)
of the Gross Golf Revenues for such Seasoned Eligible Property for the
corresponding two-quarter period during the immediately preceding year, or
(B) an insolvency proceeding shall be commenced by or against the lessee
under the Participating Lease for such Eligible Property (or the obligor
under the Innisbrook Note), (C) the lessee under the related Participating
Lease for such Eligible Property (or the obligor under the Innisbrook
Note) shall at any time be more than thirty (30) days delinquent in its
required payments to the applicable Credit Party under such Participating
Lease or Innisbrook Note, as applicable, or (D) any other material default
shall occur under the Participating Lease (or the Innisbrook Note or
Innisbrook Mortgage) and such default shall continue for a period of
ninety (90) days or more. No such property shall be reinstated as an
Eligible Property or included in the determination of the Pool Value
without the prior written consent of the Required Lenders.
(ii) Provided the Sandpiper Golf Course is closed during calendar
year 1999 for a re-design of all or any portion of the golf course, the
Sandpiper Golf Course shall not be required to comply with the quarterly
Gross Golf Revenues requirement set forth in Section 8.10(d)(i) above
until the earlier of (x) the quarter commencing July 1, 2001 or (y) the
second full calendar quarter after the completion of the work and the
reopening of the Sandpiper Golf Course for play. The lessee of the
Sandpiper Golf Course shall continue to make its required payments to the
applicable Credit Party under the related Participating Lease.
(iii) Oyster Bay shall cease to be an Eligible Property unless the
Borrower shall, not later than April 30, 1999, cause the Lessor's Estoppel
Agreement substantially in the form attached hereto as EXHIBIT K to be
fully executed and delivered to the Administrative Agent. Oyster Bay shall
not thereafter be included as an Eligible Property until such Lessor's
Estoppel Agreement is fully executed and delivered to the Administrative
Agent.
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SECTION 8.11 VISITS AND INSPECTIONS. Upon reasonable prior notice,
permit representatives of the Administrative Agent or any Lender, from time
to time during normal business hours, to visit and inspect its properties;
inspect, audit and make extracts from its books, records and files,
including, but not limited to, management letters prepared by independent
accountants; and discuss with its principal officers, and its independent
accountants, its business, assets, liabilities, financial condition, results
of operations and business prospects.
SECTION 8.12 SUBSIDIARIES. Concurrently with the creation or
acquisition of any Subsidiary (a) cause it to execute and deliver to the
Administrative Agent a supplement to the Guaranty substantially in the form
of EXHIBIT G hereto, and (b) cause to be delivered to the Administrative
Agent such other documents as the Administrative Agent or Required Lenders
shall reasonably request in connection therewith, including, without
limitation, officers' certificates, financial statements, opinions of
counsel, resolutions, charter documents, certificates of existence and
authority to do business and any other closing certificates and documents
described in Section 5.2.
SECTION 8.13 FURTHER ASSURANCES. Perform, make, execute and deliver
all such additional and further acts, things, deeds and instruments as the
Administrative Agent or any Lender may reasonably require to document and
consummate the transactions contemplated hereby and to vest completely in and
insure the Administrative Agent and the Lenders their respective rights under
this Agreement, the Notes, the Letters of Credit and the other Loan Documents.
SECTION 8.14 LINE OF BUSINESS. Continue to have as its primary
business the acquisition but not construction of golf courses and related
improvements (such improvements not to include accommodations) and the
leasing of such golf courses and related improvements to independent lessees;
provided that to the extent the improvements related to any golf course
property include a hotel, motel, condominiums or other lodging (collectively,
"accommodations"), such accommodations shall not constitute a material
portion, in the judgment of the Required Lenders, of the Property Value of
the golf course and related improvements.
SECTION 8.15 PARTICIPATING LEASES. Cause each Participating Lease
hereafter entered into by any Credit Party to include a capital expenditure
reserve of at least two percent (2%) of the annual Gross Golf Revenues from
the relevant golf course property, which reserve amount shall be used by the
relevant lessee solely as set forth in such Participating Lease.
SECTION 8.16 YEAR 2000 COMPLIANCE. Each Credit Party has (i)
initiated a review and assessment of all areas within its business and
operations (including those affected by suppliers and vendors) that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that
computer applications used by Such Credit Party (or its suppliers and
vendors) may be unable to recognize and perform properly date-sensitive
functions involving certain dates prior to and any date after December 31,
1999), (ii) developed a plan and timeline for addressing the Year 2000
Problem on a timely basis, and (iii) to date, implemented that plan in
accordance with that timetable. Each Credit Party reasonably believes that
all computer
57
applications (including those of its suppliers and vendors) that are material
to its business and operations will on a timely basis be able to perform
properly date-sensitive functions for all dates before and after January 1,
2000 (that is, be "Year 2000 compliant"), except to the extent that a failure
to do so could not reasonably be expected to have a Material Adverse Effect
on the Credit Parties. The Borrower will promptly notify the Agent in the
event any Credit Party discovers or determines that any computer application
(including those of its suppliers and vendors) that is material to its
business and operations will not be Year 2000 compliant on a timely basis,
except to the extent that such failure could not reasonably be expected to
have a Material Adverse Effect on the Credit Parties.
ARTICLE IX
FINANCIAL COVENANTS
Until all of the Obligations have been paid and satisfied in full and the
Commitments terminated, unless consent has been obtained in the manner set forth
in Section 13.11 of this Agreement, GTA and the other Credit Parties (on a
Consolidated basis) will not:
SECTION 9.1 MINIMUM TANGIBLE NET WORTH. As of the end of any quarter,
permit their Tangible Net Worth of GTA and its Consolidated Subsidiaries to
be less than $250,000,000 plus 80% of the aggregate net cash proceeds of any
issuance or offering of capital stock received by any Credit Party after the
Closing Date.
SECTION 9.2 LIABILITIES TO ASSETS RATIO. At any time, permit the
Leverage Ratio to exceed 0.55 to 1.00.
SECTION 9.3 INTEREST COVERAGE RATIO. As of the end of any quarter,
permit the ratio of (a) EBITDA of GTA and its Consolidated Subsidiaries for
such quarter then ended to (b) Interest Expense of GTA and its Consolidated
Subsidiaries for the quarter then ended to be less than 2.50 to 1.00.
SECTION 9.4 DEBT SERVICE COVERAGE RATIO. As of the end of any
quarter, permit the ratio of (a) EBITDA of GTA and its Consolidated
Subsidiaries for the quarter then ended to (b) Debt Service of GTA and its
Consolidated Subsidiaries for the quarter then ended to be less than 2.00 to
1.00.
SECTION 9.5 FIXED CHARGE COVERAGE RATIO. As of the end of any
quarter, permit the ratio of (a) EBITDA of GTA and its Consolidated
Subsidiaries for the quarter then ended to (b) Fixed Charges of GTA and its
Consolidated Subsidiaries for the quarter then ended to be less than 1.50 to
1.00.
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ARTICLE X
NEGATIVE COVENANTS
------------------
Until all of the Obligations have been paid and satisfied in full and the
Commitments terminated, unless consent has been obtained in the manner set forth
in Section 13.11 of this Agreement, none of the Credit Parties will:
SECTION 10.1 LIMITATIONS ON DEBT. Create, incur, assume or suffer to
exist any Debt except:
(a) The Obligations;
(b) Other secured Debt of the Credit Parties; PROVIDED that (i) there
shall be no recourse to the Borrower or any other Credit Party, directly or
indirectly, for the payment of such Debt and or to any property of the Borrower
or any other Credit Party, for the payment of such Debt (except to the property
securing the Debt); and (ii) the aggregate amount of such Debt outstanding at
any time shall not exceed twenty percent (20%) of the Consolidated tangible
assets of the Credit Parties;
(c) Debt of the Borrower arising under the Bridge Facility in the
principal amount of up to $25,000,000; and
(d) Any other non-revolving, unsecured Debt of the Borrower.
As a condition precedent to the incurrence of or increase in the amount of
any unsecured Debt of the Borrower, the Borrower shall deliver to the
Administrative Agent a properly completed and executed Pool Valuation
Certificate setting forth the Pool Value, which shall be at least 1.75 times the
sum of the aggregate amount of all unsecured Debt of all Credit Parties
(including the Obligations hereunder and Debt under the Credit Agreement
referenced in Section 10.1(c)), after giving effect to the unsecured Debt to be
incurred or increased
SECTION 10.2 LIMITATIONS ON CONTINGENT OBLIGATIONS. Create, incur,
assume or suffer to exist any Contingent Obligations except Contingent
Obligations in favor of the Administrative Agent for the benefit of the
Administrative Agent and the Lenders.
SECTION 10.3 LIMITATIONS ON LIENS. Create, incur, assume or suffer to
exist, any Lien on or with respect to any of its assets or properties
(including without limitation shares of capital stock or other ownership
interests), real or personal, whether now owned or hereafter acquired, except:
(a) Liens for taxes, assessments and other governmental charges or levies
(excluding any Lien imposed pursuant to any of the provisions of ERISA or
Environmental Laws) not yet due or as to which the period of grace (not to
exceed thirty (30) days), if any, related thereto has not expired;
59
(b) The claims of materialmen, mechanics, carriers, warehousemen,
processors or landlords for labor, materials, supplies or rentals incurred in
the ordinary course of business, (i) which are not overdue for a period of more
than the greater of the applicable contractual period or sixty (60) days or (ii)
which are being contested in good faith and by appropriate proceedings and for
which adequate reserves have been established in accordance with GAAP;
(c) Liens consisting of deposits or pledges made in the ordinary course of
business in connection with, or to secure payment of, obligations under workers'
compensation, unemployment insurance or similar legislation;
(d) Liens constituting encumbrances in the nature of zoning restrictions,
easements and rights or restrictions of record on the use of real property,
which in the aggregate are not substantial in amount and which do not, in any
case, detract from the value of such property or impair the use thereof in the
ordinary course of business;
(e) Equipment leases; and
(f) Liens securing Debt permitted under Section 10.1(b).
SECTION 10.4 LIMITATIONS ON LOANS, ADVANCES, INVESTMENTS AND ACQUISITIONS.
Purchase, own, invest in or otherwise acquire, directly or indirectly, any
capital stock, interests in any partnership or joint venture (including, without
limitation, the creation or capitalization of any Subsidiary), evidence of Debt
or other obligation or security, substantially all or a portion of the business
or assets of any other Person or any other investment or interest whatsoever in
any other Person, or make or permit to exist, directly or indirectly, any loans,
advances or extensions of credit to, or any investment in cash or by delivery of
property in, any Person, or enter into, directly or indirectly, any commitment
or option in respect of the foregoing except for the following:
(a) investments in (i) marketable direct obligations issued or
unconditionally guaranteed by the United States of America or any agency thereof
maturing within 120 days from the date of acquisition thereof, (ii) commercial
paper maturing no more than 120 days from the date of creation thereof and
currently having the highest rating obtainable from either S&P or ▇▇▇▇▇'▇, (iii)
certificates of deposit maturing no more than 120 days from the date of creation
thereof issued by commercial banks incorporated under the laws of the United
States of America, each having combined capital, surplus and undivided profits
of not less than $500,000,000 and having a rating of "A" or better by a
nationally recognized rating agency, or (iv) time deposits maturing no more than
30 days from the date of creation thereof with commercial banks or savings banks
or savings and loan associations each having membership either in the FDIC or
the deposits of which are insured by the FDIC and in amounts not exceeding the
maximum amounts of insurance thereunder; and repurchase agreements issued by any
Lender having a maturity of less than one year;
(b) loans to officers of GTA, the aggregate amount of which outstanding at
any one time shall not exceed one percent (1%) of Total Assets;
(c) investments in golf course properties and related improvements;
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(d) investments in unconsolidated partnerships and joint ventures; the
aggregate amount of such investment in such partnerships and joint ventures
(including investments existing on the Closing Date) not to exceed five percent
(5%) of Total Assets at any time;
(e) loans to other Persons; PROVIDED that:
(i) the proceeds of such loans will be used to construct
improvements that are, or would become (as set forth below), part of a
golf course property owned by the Credit Parties;
(ii) the aggregate outstanding amount of such loans PLUS the amounts
utilized for the construction of improvements to golf course properties to
the extent permitted under Section 10.11 shall not exceed 10% of Total
Assets at any time;
(iii) the Person receiving such Loan shall have executed a
promissory note in favor of the Borrower, in form and substance
satisfactory to the Administrative Agent;
(iv) the Borrower shall own the property on which the improvements
are to be constructed or have a binding contractual right to purchase such
property.
(f) any other investment or acquisition, with the prior written consent of
the Required Lenders.
SECTION 10.5 LIMITATIONS ON MERGERS AND LIQUIDATION. Merge,
consolidate or enter into any similar combination with any other Person or
liquidate, wind-up or dissolve itself (or suffer any liquidation or
dissolution) except in cases where a Credit Party is the surviving party in
the merger, consolidation or combination.
SECTION 10.6 LIMITATIONS ON SALE OF ASSETS. Convey, sell, lease,
assign, transfer or otherwise dispose of any of its property, business or
assets (including, without limitation, the sale of any receivables and
leasehold interests, any sale-leaseback or similar transaction and the
forgiveness of any Debt), whether now owned or hereafter acquired except:
(a) the sale of inventory in the ordinary course of business; and
(b) the sale of obsolete assets no longer used or usable in the business
of the Credit Parties; and
(c) the sale of any golf course property; PROVIDED that the proceeds of
such sale, net of ordinary and customary closing costs (including, without
limitation, professional fees), are contemporaneously applied to the prepayment
of the outstanding principal balance of the Credit Facility.
SECTION 10.7 LIMITATIONS ON DIVIDENDS AND DISTRIBUTIONS. During any
Fiscal Year, declare or pay any dividends upon any of its capital stock,
partnership units or other equity ownership interests; purchase, redeem,
retire or otherwise acquire, directly or indirectly,
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any of its capital stock, partnership units or other equity ownership
interests, or make any distribution of cash, property or assets among the
holders of its capital stock, partnership units or other equity ownership
interests in an aggregate amount exceeding ninety-five percent (95%) of the
Funds from Operations for such fiscal year, or if any Default shall have
occurred and be continuing or would result from such distribution.
SECTION 10.8 TRANSACTIONS WITH AFFILIATES. Except as permitted under
Section 10.4, directly or indirectly: (a) make any loan or advance to, or
purchase or assume any note or other obligation to or from, any of its
officers, directors, shareholders or other Affiliates, or to or from any
member of the immediate family of any of its officers, directors,
shareholders or other Affiliates, or subcontract any operations to any of its
Affiliates, or (b) enter into, or be a party to, any transaction with any of
its Affiliates, except pursuant to the reasonable requirements of its
business and upon fair and reasonable terms that are fully disclosed to and
approved in writing by the Required Lenders and are no less favorable to it
than it would obtain in a comparable arm's length transaction with a Person
not its Affiliate.
SECTION 10.9 CERTAIN ACCOUNTING CHANGES. Change its Fiscal Year, or
make any change in its accounting treatment and reporting practices except as
required by GAAP.
SECTION 10.10 RESTRICTIONS ON PREPAYMENTS. Voluntarily prepay any Debt
(other than Obligations) or amend any instrument evidencing the Debt of any
Credit Party if such amendment would have a Material Adverse Effect.
SECTION 10.11 LIMITATIONS ON IMPROVEMENTS. Permit more than 10% of
Total Assets LESS the aggregate outstanding amount of loans permitted under
Section 10.4(e) at such time, to be utilized at any one time for the
construction of improvements to golf course properties, provided that
compliance by the Credit Parties with this Section 10.11 shall be determined
without regard for funds used to construct the renovations and improvements
to the Sandpiper Golf Course.
SECTION 10.12 RESTRICTIVE AGREEMENTS. Incur any Debt or enter into any
other agreement on terms which include a negative pledge on any material
asset or any other covenant more restrictive than the provisions of Articles
IX and X hereof.
SECTION 10.13 AMENDMENTS. Amend the Innisbrook Note, the Innisbrook
Loan Agreement, the Innisbrook Mortgage, or any Qualified Ground Lease or
Participating Lease with respect to any golf course property included in the
Unencumbered Pool in any manner materially adverse to any Credit Party
without the prior written consent of the Agents (it being understood that any
amendment of a Participating Lease which reduces the rent, shortens the term,
releases any guarantor of or collateral for the obligations of the lessee,
amends the capital expenditure reserve provision or terminates the lease
shall be materially adverse to such Credit Party).
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ARTICLE XI
DEFAULT AND REMEDIES
SECTION 11.1 EVENTS OF DEFAULT. Each of the following shall
constitute an Event of Default, whatever the reason for such event and
whether it shall be voluntary or involuntary or be effected by operation of
law or pursuant to any judgment or order of any court or any order, rule or
regulation of any Governmental Authority or otherwise:
(a) DEFAULT IN PAYMENT OF PRINCIPAL OF LOANS. The Borrower shall default
in any payment of principal of any Loan or Note when and as due (whether at
maturity, by reason of acceleration or otherwise).
(b) OTHER PAYMENT DEFAULT. The Borrower shall default in the payment when
and as due (whether at maturity, by reason of acceleration or otherwise) of
interest on any Loan or Note or the payment of any other Obligation, and such
default shall continue unremedied for five (5) Business Days.
(c) MISREPRESENTATION. Any representation or warranty made or deemed to be
made by any Credit Party under this Agreement, any other Loan Document or any
amendment hereto or thereto, shall at any time prove to have been incorrect or
misleading in any material respect when made or deemed made.
(d) DEFAULT IN PERFORMANCE OF CERTAIN COVENANTS. Any Credit Party shall
default in the performance or observance of any covenant or agreement contained
in Articles IX or X of this Agreement.
(e) DEFAULT IN PERFORMANCE OF OTHER COVENANTS AND CONDITIONS. Any Credit
Party shall default in the performance or observance of any term, covenant,
condition or agreement contained in this Agreement (other than as specifically
provided for otherwise in this Section 11.1) or any other Loan Document and such
default shall continue for a period of thirty (30) days after written notice
thereof has been given to such Credit Party by the Administrative Agent; or if
such default cannot reasonably be cured within such period, the Borrower does
not within such thirty (30)-day period commence such act or acts as shall be
necessary to remedy the default and shall not cause such default to be cured
within a reasonable time, not to exceed, in any event, one hundred twenty (120)
days.
(f) HEDGING AGREEMENT. Any termination payment shall be due by the
Borrower under any Hedging Agreement and such amount is not paid within ten (10)
Business Days of the due date thereof.
(g) DEBT CROSS-DEFAULT. Any Credit Party shall (i) default in the payment
of any Debt (other than the Notes) beyond the period of grace, if any, provided
in the instrument or agreement under which such Debt was created, or (ii) be in
material default in the observance or performance of any other agreement or
condition relating to any Debt (other than the Notes) or contained in any
instrument or agreement evidencing, securing or relating thereto or any other
event shall occur or condition exist, the effect of which default or other event
or condition
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is to cause, or to permit the holder or holders of such Debt (or a trustee or
agent on behalf of such holder or holders) to cause, with the giving of
notice if required, any such Debt to become due prior to its stated maturity
(any applicable grace period having expired).
(h) OTHER CROSS-DEFAULTS. Any Credit Party shall default in the payment
when due, or in the performance or observance, of any obligation or condition of
any Material Contract or any Participating Lease unless, but only as long as,
the existence of any such default is being contested by such Credit Party in
good faith by appropriate proceedings and adequate reserves in respect thereof
have been established on the books of such Credit Party to the extent required
by GAAP.
(i) CHANGE IN CONTROL. (A) Any person or group of persons (within the
meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended)
other than GTA or ▇▇▇▇▇ ▇. ▇▇▇▇▇, shall obtain ownership or control, directly or
indirectly, in one or more series of transactions of more than thirty percent
(30%) of the partnership interests or other equity interests of the Borrower, or
(B) more than fifty percent (50%) of the board of directors of GTA shall change
during any twelve month period, exclusive of any change of members resulting
from the death or incompetency of board members.
(j) CHANGE OF MANAGEMENT. W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ shall cease to serve as an
executive officer of the Borrower and is not replaced by an individual
acceptable to the Required Lenders within a period of one hundred twenty (120)
days.
(k) LOSS OF REIT STATUS. GTA shall default in the performance of the
covenant contained in Section 3.14 of this Agreement.
(l) VOLUNTARY BANKRUPTCY PROCEEDING. Any Credit Party shall (i) commence a
voluntary case under the federal bankruptcy laws (as now or hereafter in
effect), (ii) file a petition seeking to take advantage of any other laws,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding
up or composition for adjustment of debts, (iii) consent to or fail to contest
in a timely and appropriate manner any petition filed against it in an
involuntary case under such bankruptcy laws or other laws, (iv) apply for or
consent to, or fail to contest in a timely and appropriate manner, the
appointment of, or the taking of possession by, a receiver, custodian, trustee,
or liquidator of itself or of a substantial part of its property, domestic or
foreign, (v) admit in writing its inability to pay its debts as they become due,
(vi) make a general assignment for the benefit of creditors, or (vii) take any
corporate action for the purpose of authorizing any of the foregoing.
(m) INVOLUNTARY BANKRUPTCY PROCEEDING. A case or other proceeding shall
be commenced against any Credit Party in any court of competent jurisdiction
seeking (i) relief under the federal bankruptcy laws (as now or hereafter in
effect) or under any other laws, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, winding up or adjustment of debts, or (ii) the
appointment of a trustee, receiver, custodian, liquidator or the like for any
Credit Party or for all or any substantial part of their respective assets,
domestic or foreign, and such case or proceeding shall continue undismissed
or unstayed for a period of sixty (60) consecutive days, or an order granting
the relief requested in such case or proceeding
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(including, but not limited to, an order for relief under such federal
bankruptcy laws) shall be entered.
(n) FAILURE OF AGREEMENTS. Any provision of this Agreement or of any other
Loan Document (other than any usury savings clause, waiver or similar provision)
shall for any reason cease to be valid and binding on any Credit Party or any
such Person shall so state in writing, or this Agreement or any other Loan
Document shall for any reason cease to create a valid and perfected first
priority Lien on, or security interest in, any of the collateral purported to be
covered thereby, in each case other than in accordance with the express terms of
this Agreement or thereof.
(o) TERMINATION EVENT. The occurrence of any of the following events: (i)
the Borrower or any ERISA Affiliate fails to make full payment when due of all
amounts which, under the provisions of any Pension Plan or Section 412 of the
Code, the Borrower or any ERISA Affiliate is required to pay as contributions
thereto, (ii) an accumulated funding deficiency in excess of $1,000,000 occurs
or exists, whether or not waived, with respect to any Pension Plan, (iii) a
Termination Event, or (iv) the Borrower or any ERISA Affiliate as employers
under one or more Multi-employer Plan makes a complete or partial withdrawal
from any such Multi-employer Plan and the plan sponsor of such Multi-employer
Plans notifies such withdrawing employer that such employer has incurred a
withdrawal liability requiring payments in an amount exceeding $100,000.
(p) JUDGMENT. A judgment or order for the payment of money which causes
the aggregate amount of all such judgments to exceed $250,000 in any Fiscal Year
shall be entered against any Credit Party by any court and such judgment or
order shall continue undischarged or unstayed for a period of thirty (30) days.
(q) EXECUTION OR ATTACHMENT. Any writ of execution, attachment or
garnishment for an amount in excess of $250,000 shall be assessed against the
assets of any Credit Party and such writ of execution, attachment or garnishment
shall not be dismissed, discharged, stayed or quashed within thirty (30) days of
issuance.
(r) DEFAULT UNDER BRIDGE FACILITY. Any Event of Default shall exist under
the Bridge Facility.
SECTION 11.2 REMEDIES. Upon the occurrence of an Event of Default,
with the consent of the Required Lenders, the Administrative Agent may, or
upon the request of the Required Lenders, the Administrative Agent shall, by
notice to the Borrower:
(a) ACCELERATION; TERMINATION OF FACILITIES. Declare the principal of and
interest on the Loans and the Notes at the time outstanding, and all other
amounts owed to the Lenders and to the Administrative Agent under this Agreement
or any of the other Loan Documents (including, without limitation, all Letter of
Credit Obligations, whether or not the beneficiaries of the then outstanding
Letters of Credit shall have presented the documents required thereunder) and
all other Obligations, to be forthwith due and payable, whereupon the same shall
immediately become due and payable without presentment, demand, protest or other
notice of any kind, all of which are expressly waived, anything in this
Agreement or the other
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Loan Documents to the contrary notwithstanding, and terminate the Credit
Facility and any right of the Borrower to request borrowings or the issuance
of Letters of Credit hereunder; PROVIDED, that upon the occurrence of an
Event of Default specified in Section 11.1(l) or (m), the Credit Facility and
the L/C Commitment shall be automatically terminated and all Obligations
shall automatically become due and payable without presentment, demand,
protest or other notice of any kind, all of which are expressly waived,
anything in this Agreement or the other Loan Documents to the contrary
notwithstanding.
(b) LETTERS OF CREDIT. With respect to all Letters of Credit with respect
to which presentment for honor shall not have occurred at the time of an
acceleration pursuant to the preceding paragraph, require the Borrower at such
time to deposit in a cash collateral account opened by the Administrative Agent
an amount equal to the aggregate then undrawn and unexpired amount of such
Letters of Credit. Amounts held in such cash collateral account shall be applied
by the Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay the
other Obligations. After all such Letters of Credit shall have expired or been
fully drawn upon, the Reimbursement Obligation shall have been satisfied and all
other Obligations shall have been paid in full, the balance, if any, in such
cash collateral account shall be returned to the Borrower.
(c) RIGHTS OF COLLECTION. Exercise on behalf of the Lenders all of its
other rights and remedies under this Agreement (including, without limitation,
those provided for in Article IV), the other Loan Documents and Applicable Law,
in order to satisfy all of the Obligations.
SECTION 11.3 RIGHTS AND REMEDIES CUMULATIVE; NON-WAIVER; ETC. The
enumeration of the rights and remedies of the Administrative Agent and the
Lenders set forth in this Agreement is not intended to be exhaustive and the
exercise by the Administrative Agent and the Lenders of any right or remedy
shall not preclude the exercise of any other rights or remedies, all of which
shall be cumulative, and shall be in addition to any other right or remedy given
under this Agreement or under the other Loan Documents or that may now or
hereafter exist at law or in equity or by suit or otherwise. No delay or failure
to take action on the part of the Administrative Agent or any Lender in
exercising any right, power or privilege shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right, power or privilege
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege or shall be construed to be a waiver of any Event of
Default. No course of dealing between the Borrower, the Administrative Agent and
the Lenders or their respective agents or employees shall be effective to
change, modify or discharge any provision of this Agreement or any of the other
Loan Documents or to constitute a waiver of any Event of Default.
ARTICLE XII
THE ADMINISTRATIVE AGENT
SECTION 12.1 APPOINTMENT, POWERS, AND IMMUNITIES.
(a) Each Lender hereby irrevocably appoints and authorizes
NationsBank to act as its Administrative Agent under this Agreement and the
other Loan Documents with such
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powers and discretion as are specifically and respectively delegated to the
Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto.
(b) The Administrative Agent shall administer the Credit Facility in the
same manner as if the entire Aggregate Commitment were held by the
Administrative Agent in its own portfolio. The Administrative Agent shall
forward to the Lenders all documents received by the Administrative Agent from
any Credit Party pursuant to the terms of this Agreement, unless such Credit
Party is obligated under this Agreement to make delivery of such documents to
the Lenders.
(c) The Administrative Agent (which term as used in this sentence and in
Section 12.5 and the first sentence of Section 12.6 of this Agreement shall
include its Affiliates and its own and its Affiliates' officers, directors,
employees, and agents): (a) shall not have any duties or responsibilities except
those expressly set forth in this Agreement and shall not be a trustee or
fiduciary for any Lender; (b) shall not be responsible to the Lenders for any
recital, statement, representation, or warranty (whether written or oral) made
in or in connection with any Loan Document or any certificate or other document
referred to or provided for in, or received by any of them under, any Loan
Document, or for the value, validity, effectiveness, genuineness,
enforceability, or sufficiency of any Loan Document, or any other document
referred to or provided for therein or for any failure by any Credit Party or
any other Person to perform any of its obligations under this Agreement; (c)
shall not be responsible for or have any duty to ascertain, inquire into, or
verify the performance or observance of any covenants or agreements by any
Credit Party or the satisfaction of any condition or to inspect the property
(including the books and records) of any Credit Party or any of its Subsidiaries
or Affiliates; (d) shall not be required to initiate or conduct any litigation
or collection proceedings under any Loan Document; and (e) shall not be
responsible for any action taken or omitted to be taken by it under or in
connection with any Loan Document, except for its own gross negligence or
willful misconduct or breach of an express agreement made by the Administrative
Agent to any other Lender contained herein. The Administrative Agent may employ
agents and attorneys-in-fact and shall not be responsible for the negligence or
misconduct of any such agents or attorneys-in-fact selected by it with
reasonable care.
SECTION 12.2 RELIANCE BY AGENT. The Administrative Agent shall be
entitled to rely upon any certification, notice, instrument, writing, or
other communication (including, without limitation, any thereof by telephone
or telecopy) reasonably believed by it to be genuine and correct and to have
been signed, sent or made by or on behalf of the proper Person or Persons,
and upon advice and statements of legal counsel (including counsel for any
Credit Party), independent accountants, and other experts selected by the
Administrative Agent. The Administrative Agent may deem and treat the payee
of any Note as the holder thereof for all purposes of this Agreement unless
and until the Administrative Agent receives and accepts an Assignment and
Acceptance executed in accordance with Section 13.10. As to any matters not
expressly provided for by this Agreement, the Administrative Agent shall not
be required to exercise any discretion or take any action, but shall be
required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the instructions of the Required
Lenders, and such instructions shall be binding on all of the Lenders;
PROVIDED, HOWEVER, that the Administrative Agent shall not be required to
take any action that exposes the
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Administrative Agent to personal liability or that is contrary to any Loan
Document or applicable law or unless it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which
may be incurred by it by reason of taking any such action.
SECTION 12.3 DEFAULTS. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of a Default or Event of
Default unless the Administrative Agent has received written notice from a
Lender or the Borrower specifying such Default or Event of Default and
stating that such notice is a "Notice of Default". In the event that any
Lender receives such a notice of the occurrence of a Default or Event of
Default, such Lender shall give prompt notice thereof to the Administrative
Agent, the other Lenders and the Borrower. The Administrative Agent shall
(subject to Section 12.2 of this Agreement) take such action with respect to
such Default or Event of Default as shall reasonably be directed by the
Required Lenders, PROVIDED THAT, unless and until the Administrative Agent
shall have received such directions, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem advisable
in the best interest of the Lenders.
SECTION 12.4 RIGHTS AS LENDER. With respect to its Commitment and the
Loans made by it, the Administrative Agent (and any successor acting as
Agent) in its capacity as a Lender under this Agreement shall have the same
rights and powers under this Agreement as any other Lender and may exercise
the same as though it were not acting as Administrative Agent, and the term
"Lender" or "Lenders" shall, unless the context otherwise indicates, include
the Administrative Agent in its individual capacity. The Administrative Agent
(and any successor acting as Administrative Agent) and its Affiliates may
(without having to account therefor to any Lender) accept deposits from, lend
money to, make investments in, provide services to, and generally engage in
any kind of lending, trust, or other business with any Credit Party or
Affiliates as if it were not acting as Administrative Agent, and the
Administrative Agent (and any successor acting as Administrative Agent) and
its Affiliates may accept fees and other consideration from any Credit Party
or any of its Subsidiaries or Affiliates for services in connection with this
Agreement or otherwise without having to account for the same to the Lenders.
SECTION 12.5 INDEMNIFICATION. The Lenders agree to indemnify the
Administrative Agent (to the extent not reimbursed under Section 3.7, but
without limiting the obligations of the Borrower under such Section) ratably
in accordance with their respective Commitments, for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including attorneys' fees), or disbursements of any kind and nature
whatsoever that may be imposed on, incurred by or asserted against the
Administrative Agent (including by any Lender) in any way relating to or
arising out of any Loan Document or the transactions contemplated thereby or
any action taken or omitted by the Administrative Agent under any Loan
Document; PROVIDED that no Lender shall be liable for any of the foregoing to
the extent they arise from the gross negligence or willful misconduct of the
Person to be indemnified or from the breach of an express agreement or made
by the Administrative Agent to any Lenders contained herein. Without
limitation of the foregoing, each Lender agrees to reimburse the
Administrative Agent promptly upon demand for its ratable share of any costs
or expenses payable by the Borrower under Section 13.2, to the extent that
the
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Administrative Agent is not promptly reimbursed for such reasonable and
actually incurred costs and expenses by the Borrower. The agreements
contained in this Section shall survive payment in full of the Loans and all
other amounts payable under this Agreement.
SECTION 12.6 NON-RELIANCE ON AGENT AND OTHER LENDERS. Each Lender
agrees that it has, independently and without reliance on the Administrative
Agent or any other Lender, and based on such documents and information as it
has deemed appropriate, made its own credit analysis of the Credit Parties
and their Subsidiaries and decision to enter into this Agreement and to make
Loans hereunder and to issue or participate in Letters of Credit hereunder
and that it will, independently and without reliance upon the Administrative
Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own analysis and
decisions in taking or not taking action under the Loan Documents. Except for
notices, reports, and other documents and information expressly required to
be furnished to the Lenders by the Administrative Agent under this Agreement,
the Administrative Agent shall have no duty or responsibility to provide any
Lender with any credit or other information concerning the affairs, financial
condition, or business of any Credit Party or Affiliates that may come into
the possession of the Administrative Agent or any of their Affiliates.
SECTION 12.7 RESIGNATION; REMOVAL OF AGENT; SUCCESSOR AGENTS.
(a) RESIGNATION OF AGENT. The Administrative Agent may resign at any time
by giving prior written notice thereof to the Lenders and the Borrower. The
Required Lenders shall have the right to appoint a successor Administrative
Agent. If no successor Administrative Agent shall have been so appointed by the
Required Lenders or such appointee shall not have accepted such appointment
within thirty (30) days after the retiring Agent's giving of notice of
resignation, then the retiring Administrative Agent may, on behalf of the
Lenders, appoint a successor Administrative Agent which shall be an Eligible
Assignee having total assets of at least $25,000,000,000.
(b) REMOVAL OF ADMINISTRATIVE AGENT. The Lenders may remove the
Administrative Agent hereunder and appoint a successor Administrative Agent upon
not less than thirty (30) days' prior written notice signed by Lenders whose
Commitment Percentages equal sixty six and two thirds percent (66.67%) of the
Aggregate Commitment exclusive of the Administrative Agent's Commitment, if (i)
the Administrative Agent's Commitment is less than twenty million dollars
($20,000,000) and no Event of Default has occurred and is continuing or (ii) the
Administrative Agent is grossly negligent or is guilty of willful misconduct in
the performance of its duties hereunder, as determined in the reasonable
discretion of the Lenders signing the foregoing written notice. If the
Administrative Agent's Commitment is less than twenty million dollars
($20,000,000) and no Event of Default has occurred and is continuing, the
Administrative Agent will tender its resignation as Administrative Agent.
(c) SUCCESSOR AGENTS. Upon the acceptance of any appointment as
Administrative Agent under this Agreement by a successor, such successor shall
thereupon succeed to and become vested with all the rights, powers, discretion,
privileges, and duties of the retiring Administrative Agent upon written notice
thereof to Borrower, and the retiring Administrative Agent shall be discharged
from its duties and obligations under this Agreement excepting with
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respect to its willful misconduct or gross negligence occurring prior to its
discharge. After any retiring Administrative Agent's resignation or removal
under this Agreement as Administrative Agent, the provisions of this Article
12 shall continue in effect for its benefit in respect of any actions taken
or omitted to be taken by it while it was acting as Administrative Agent.
SECTION 12.8 DOCUMENTATION AGENT AND SYNDICATION AGENT. The
Documentation Agent and Syndication Agent, in their respective capacities as
a documentation agent and a syndication agent, shall have no duties or
responsibilities under this Agreement or any other Loan Document.
ARTICLE XIII
MISCELLANEOUS
SECTION 13.1 NOTICES.
(a) METHOD OF COMMUNICATION. Except as otherwise provided in this
Agreement, all notices and communications under this Agreement shall be in
writing, or by telephone subsequently confirmed in writing. Any notice shall be
effective if delivered by hand delivery or sent via telecopy, recognized
overnight courier service or certified mail, return receipt requested, and shall
be presumed to be received by a party hereto (i) on the date of delivery if
delivered by hand or sent by telecopy, (ii) on the next Business Day if sent by
recognized overnight courier service, and (iii) on the third Business Day
following the date sent by certified mail, return receipt requested. A
telephonic notice to the Administrative Agent as understood by the
Administrative Agent will be deemed to be the controlling and proper notice in
the event of a discrepancy with or failure to receive a confirming written
notice.
(b) ADDRESSES FOR NOTICES. Notices to any party shall be sent to it at the
following addresses, or any other address as to which all the other parties are
notified in writing.
If to the Borrower: Golf Trust of America, L.P.
▇/▇ ▇▇▇
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ and
▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Telephone No.: 843/▇▇▇-▇▇▇▇
Telecopy No.: 843/723-0479
With copies to: O'Melveny & ▇▇▇▇▇ LLP
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇, Esq.
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
70
If to any Guarantor: c/o Golf Trust of America, Inc.
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ and
▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Telephone No.: 843/▇▇▇-▇▇▇▇
Telecopy No.: 843/723-0479
If to NationsBank as NationsBank, N.A.
Administrative Agent Commercial Banking
or as Issuing Lender: ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
If to any Lender: To the Address set forth on
SCHEDULE 1 hereto
(c) ADMINISTRATIVE AGENT'S OFFICE. The Administrative Agent hereby
designates its office located at the address set forth above, or any subsequent
office which shall have been specified for such purpose by written notice to the
Borrower and Lenders, as the Administrative Agent's Office referred to in this
Agreement, to which payments due are to be made and at which Loans will be
disbursed and Letters of Credit issued.
SECTION 13.2 EXPENSES; INDEMNIFICATION.
(a) The Borrower agrees to pay on demand all reasonably and actually
incurred costs and expenses of the Agents, NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC
and the Lenders in connection with the syndication, preparation, execution,
delivery, administration, modification, and amendment of this Agreement, the
other Loan Documents, and the other documents to be delivered under this
Agreement, including, without limitation, the reasonable fees and expenses of
counsel for the Administrative Agent, NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC and
the Lenders (including the cost of internal counsel) with respect thereto and
with respect to advising the Administrative Agent or any Lender as to their
rights and responsibilities under the Loan Documents. The Borrower further
agrees to pay on demand all reasonably and actually incurred costs and expenses
of the Agents and the Lenders, if any (including, without limitation, reasonable
and actually incurred attorneys' fees and expenses and the reasonably and
actually incurred cost of internal counsel), in connection with the enforcement
(whether through negotiations, legal proceedings, or otherwise) of the Loan
Documents and the other documents to be delivered under this Agreement.
(b) The Borrower agrees to indemnify and hold harmless each Agent and each
Lender and each of their Affiliates (including, without limitation, NationsBanc
▇▇▇▇▇▇▇▇▇▇ Securities LLC) and their respective officers, directors, employees,
agents, and advisors (each, an "Indemnified Party") from and against any and all
claims, damages, losses, liabilities, costs, and expenses (including, without
limitation, reasonable and actually incurred attorneys' fees)
71
that may be incurred by or asserted or awarded against any Indemnified Party,
in each case arising out of or in connection with or by reason of (including,
without limitation, in connection with any investigation, litigation, or
proceeding or preparation of defense in connection therewith) the Loan
Documents, any of the transactions contemplated in this Agreement or the
actual or proposed use of the proceeds of the Loans, except to the extent
such claim, damage, loss, liability, cost, or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted
from such Indemnified Party's gross negligence or willful misconduct. In the
case of an investigation, litigation or other proceeding to which the
indemnity in this Section 13.2 applies, such indemnity shall be effective
whether or not such investigation, litigation or proceeding is brought by any
Credit Party, its directors, shareholders or creditors or an Indemnified
Party or any other Person or any Indemnified Party is otherwise a party
thereto and whether or not the transactions contemplated hereby are
consummated. The Borrower agrees not to assert any claim against any Agent,
any Lender, any of their Affiliates, or any of their respective directors,
officers, employees, attorneys, agents, and advisers, on any theory of
liability, for special, indirect, consequential, or punitive damages arising
out of or otherwise relating to the Loan Documents, any of the transactions
contemplated in this Agreement or the actual or proposed use of the proceeds
of the Loans.
(c) Without prejudice to the survival of any other agreement of the
Borrower under this Agreement, the agreements and obligations of the Borrower
contained in this Section 13.2 shall survive the payment in full of the Loans
and all other amounts payable under this Agreement.
SECTION 13.3 SET-OFF. In addition to any rights now or hereafter
granted under Applicable Law and not by way of limitation of any such rights,
upon and after the occurrence of any Event of Default and during the
continuance thereof, the Lenders and any assignee or participant of a Lender
in accordance with Section 13.10 are hereby authorized by the Borrower at any
time or from time to time, without notice to the Borrower or to any other
Person, any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, time or
demand, including, but not limited to, indebtedness evidenced by certificates
of deposit, whether matured or unmatured) and any other indebtedness at any
time held or owing by the Lenders, or any such assignee or participant to or
for the credit or the account of the Borrower against and on account of the
Obligations irrespective of whether or not (a) the Lenders shall have made
any demand under this Agreement or any of the other Loan Documents or (b) the
Administrative Agent shall have declared any or all of the Obligations to be
due and payable as permitted by Section 11.2 and although such Obligations
shall be contingent or unmatured.
SECTION 13.4 GOVERNING LAW. This Agreement, the Notes and the other
Loan Documents, unless otherwise expressly set forth therein, shall be
governed by, and construed and enforced in accordance with, the laws of the
State of North Carolina, without reference to the conflicts or choice of law
principles thereof.
SECTION 13.5 CONSENT TO JURISDICTION. Each Credit Party hereby
irrevocably consents to the personal jurisdiction of the state and federal
courts located in Mecklenburg County, North Carolina, in any action, claim or
other proceeding arising out of any dispute in connection with this
Agreement, the Notes and the other Loan Documents, any rights or
72
obligations under this Agreement or thereunder, or the performance of such
rights and obligations. Each Credit Party hereby irrevocably consents to the
service of a summons and complaint and other process in any action, claim or
proceeding brought by either the Agent or any Lender in connection with this
Agreement, the Notes or the other Loan Documents, any rights or obligations
under this Agreement or thereunder, or the performance of such rights and
obligations, on behalf of itself or its property, in the manner specified in
Section 13.1. Nothing in this Section 13.5 shall affect the right of either
the Agent or any Lender to serve legal process in any other manner permitted
by Applicable Law or affect the right of either the Agent or any Lender to
bring any action or proceeding against any Credit Party or its properties in
the courts of any other jurisdictions.
SECTION 13.6 WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY LAW,
EACH AGENT, EACH LENDER AND EACH CREDIT PARTY HEREBY IRREVOCABLY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM OR OTHER
PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, THE
NOTES OR THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS UNDER THIS
AGREEMENT OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.
SECTION 13.7 REVERSAL OF PAYMENTS. To the extent the Borrower makes a
payment or payments to the Administrative Agent for the ratable benefit of
the Lenders which payments or proceeds 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
bankruptcy law, state or federal law, common law or equitable cause, then, to
the extent of such payment or proceeds repaid, the Obligations or part
thereof intended to be satisfied shall be revived and continued in full force
and effect as if such payment or proceeds had not been received by the
Administrative Agent.
SECTION 13.8 INJUNCTIVE RELIEF; PUNITIVE DAMAGES.
(a) Each Credit Party recognizes that in the event the Borrower fails to
perform, observe or discharge any of its obligations or liabilities under this
Agreement, any remedy of law may prove to be inadequate relief to the Lenders.
Therefore, each Credit Party agrees that the Lenders, at the Lenders' option,
shall be entitled to temporary and permanent injunctive relief in any such case
without the necessity of proving actual damages.
(b) The Agents, the Lenders and the Credit Parties hereby agree that no
such Person shall have a remedy of punitive or exemplary damages against any
other party to a Loan Document and each such Person hereby waives any right or
claim to punitive or exemplary damages that they may now have or may arise in
the future in connection with any judicial proceeding, dispute, claim or
controversy arising out of, connected with or relating to the Notes or any other
Loan Documents ("Disputes"), whether such Dispute is resolved through
arbitration or judicially.
(c) The parties agree that they shall not have a remedy of punitive or
exemplary damages against any other party in any Dispute and hereby waive any
right or claim to punitive
73
or exemplary damages they have now or which may arise in the future in
connection with any Dispute whether the Dispute is resolved by arbitration or
judicially.
SECTION 13.9 ACCOUNTING MATTERS. All financial and accounting
calculations, measurements and computations made for any purpose relating to
this Agreement, including, without limitation, all computations utilized by
any Credit Party to determine compliance with any covenant contained in this
Agreement, shall, except as otherwise expressly contemplated hereby or unless
there is an express written direction by the Administrative Agent to the
contrary agreed to by the Borrower, be performed in accordance with GAAP as
in effect on the Closing Date. In the event that changes in GAAP shall be
mandated by the Financial Accounting Standards Board, or any similar
accounting body of comparable standing, or shall be recommended by the
Borrower's certified public accountants, to the extent that such changes
would modify such accounting terms or the interpretation or computation
thereof, such changes shall be followed in defining such accounting terms
only from and after the date the Borrower and the Lenders shall have amended
this Agreement to the extent necessary to reflect any such changes in the
financial covenants and other terms and conditions of this Agreement.
SECTION 13.10 ASSIGNMENTS AND PARTICIPATIONS.
(a) Each Lender may assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Loans, its Notes, and its Commitment);
PROVIDED, HOWEVER, that
(i) so long as no Default or Event of Default has occurred and is
continuing, NationsBank's Commitment shall not be less than $20,000,000
and PROVIDED, FURTHER, that NationsBank shall promptly notify each of the
other Lenders in writing if its Commitment is less than $20,000,000;
(ii) each such assignment shall be to an Eligible Assignee;
(iii) except in the case of an assignment to another Lender or an
assignment of all of a Lender's rights and obligations under this
Agreement, any such partial assignment shall be in an amount at least
equal to $10,000,000 or an integral multiple of $1,000,000 in excess
thereof;
(iv) each such assignment by a Lender shall be of a constant, and
not varying, percentage of all of its rights and obligations under this
Agreement and its Note;
(v) the parties to such assignment shall execute and deliver to the
Administrative Agent for its acceptance an Assignment and Acceptance in
the form of EXHIBIT F hereto, together with any Note subject to such
assignment and, except in cases of assignment to a Lender or an Affiliate
of a Lender, a processing fee of $3,500; and
(vi) the Borrower shall receive prior written notice thereof.
74
Upon execution, delivery, and acceptance of such Assignment and Acceptance, the
assignee thereunder shall be a party hereto and, to the extent of such
assignment, have the obligations, rights, and benefits of a Lender under this
Agreement and the assigning Lender shall, to the extent of such assignment,
relinquish its rights and be released from its obligations under this Agreement
excepting with respect to any gross negligence or willful misconduct on the part
of such assigning Lender prior to the date of such assignment. Upon the
consummation of any assignment pursuant to this Section, the assignor, the
Administrative Agent and the Borrower shall make appropriate arrangements so
that, if required, new Notes are issued to the assignor and the assignee. If the
assignee is not incorporated under the laws of the United States of America or a
state thereof, it shall deliver to the Borrower and the Administrative Agent
certification as to exemption from deduction or withholding of Taxes in
accordance with Section 3.13.
(b) The Administrative Agent shall maintain at its address referred to in
Section 13.1 a copy of each Assignment and Acceptance delivered to and accepted
by it and a register for the recordation of the names and addresses of the
Lenders and the Commitment of, and principal amount of the Loans owing to, each
Lender from time to time (the "Register"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender under this Agreement for all
purposes of this Agreement. The Register shall be available for inspection by
the Borrower (or any of its agents or advisors) or any Lender at any reasonable
time and from time to time upon reasonable prior notice.
(c) Upon its receipt of an Assignment and Acceptance executed by the
parties thereto, together with the Note subject to such assignment and payment
of the processing fee, the Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of EXHIBIT F
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt written notice thereof
to the parties thereto and to the Borrower.
(d) Each Lender may sell participations in minimum amounts of $10,000,000
to one or more Persons in all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and its Loans);
PROVIDED, HOWEVER, 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, (iii) the participant
shall be entitled to the benefit of the yield protection provisions contained in
Article III and the right of set-off contained in Section 3.5, and (iv) the
Borrower shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement, and
such Lender shall retain the sole right to enforce the obligations of the
Borrower relating to its Loans and its Note and to approve any amendment,
modification, or waiver of any provision of this Agreement (other than
amendments, modifications, or waivers increasing or decreasing the amount of
principal of or the rate at which interest is payable on such Loans or Note,
extending the maturity date or any scheduled principal payment date or date
fixed for the payment of interest on such Loans or Note or increasing the
Aggregate Commitment) or modifying the coverage ratio contained in clause (c) of
Section 2.1 or Section 8.10 (or any defined term used therein).
75
(e) Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time assign and pledge all or any portion of its Loans and its
Notes to any Federal Reserve Bank as collateral security pursuant to Regulation
A and any Operating Circular issued by such Federal Reserve Bank. No such
assignment shall release the assigning Lender from its obligations under this
Agreement.
(f) Any Lender may furnish any information concerning the Credit Parties
in the possession of such Lender from time to time to assignees and participants
(including prospective assignees and participants).
SECTION 13.11 AMENDMENTS AND WAIVERS. Any provision of this Agreement or
any other Loan Document may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed by the Borrower and the Required Lenders
(and, if Article XII or the rights or duties of the Administrative Agent are
affected thereby, by the Administrative Agent); PROVIDED that no such amendment
or waiver shall, unless signed by all the Lenders (other than Defaulting
Lenders), (i) increase the Commitments of the Lenders, (ii) extend the time of
the obligation of the Lenders to make Loans or to issue or participate in
Letters of Credit, (iii) reduce the principal of or rate of interest on any Loan
or Reimbursement Obligation or any fees or other amounts payable under this
Agreement, (iv) postpone any date fixed for the payment of any scheduled
installment of principal of or interest on any Loan or Reimbursement Obligation
or any fees or other amounts payable hereunder or for termination of any
Commitment, (v) change the percentage of the Commitments or of the unpaid
principal amount of the Notes, or the number of Lenders, which shall be required
for the Lenders, the Administrative Agent or any of them to take any action
under this Section or any other provision of this Agreement, (vi) release any
Guarantor, (vii) modify any provision of Article IX or Section 8.10 (or any
defined term used therein), (viii) modify the provisions of Section 10.1(d)
including any of the defined terms in Section 10.1(d), or (ix) modify the
provisions of Section 10.3, this Section 13.11, the definition of Required
Lenders, or any provision of any Loan Document which, by its terms, requires the
consent, approval or satisfaction of all Lenders or each Lender, without the
prior written consent of each Lender. In addition, no amendment, waiver or
consent to the provisions of Article IIA shall be made without the written
consent of the Issuing Lender. The Issuing Lender shall not, without the prior
consent of all the Lenders, issue any Letter of Credit if, after giving effect
to such issuance, (a) the Letter of Credit Obligations would exceed the L/C
Commitment or (b) the sum of the aggregate principal amount of all outstanding
Loans and Letter of Credit Obligations would exceed the Aggregate Commitment. No
amendment or waiver of Section 2.3(d) shall be effective without the prior
written consent of NationsBank.
SECTION 13.12 PERFORMANCE OF DUTIES. Each Credit Party's obligations under
this Agreement and each of the Loan Documents shall be performed by such Credit
Party at its sole cost and expense.
SECTION 13.13 ALL POWERS COUPLED WITH INTEREST. All powers of attorney and
other authorizations granted to the Lenders, the Administrative Agent and any
Persons designated by the Administrative Agent or any Lender pursuant to any
provisions of this Agreement or any of the other Loan Documents shall be deemed
coupled with an interest and
76
shall be irrevocable so long as any of the Obligations remain unpaid or
unsatisfied or the Credit Facility has not been terminated.
SECTION 13.14 SURVIVAL OF INDEMNITIES. Notwithstanding any termination of
this Agreement, the indemnities to which the Agents and the Lenders are entitled
under the provisions of this Article XIII and any other provision of this
Agreement and the other Loan Documents shall continue in full force and effect
and shall protect the Agents and the Lenders against events arising after such
termination as well as before.
SECTION 13.15 TITLES AND CAPTIONS. Titles and captions of Articles,
Sections and subsections in this Agreement are for convenience only, and neither
limit nor amplify the provisions of this Agreement.
SECTION 13.16 SEVERABILITY OF PROVISIONS. Any provision of this Agreement
or any other Loan Document which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating the remainder of
such provision or the remaining provisions of this Agreement or thereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.
SECTION 13.17 COUNTERPARTS. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and shall be binding
upon all parties, their successors and assigns, and all of which taken together
shall constitute one and the same agreement.
SECTION 13.18 TERM OF AGREEMENT. This Agreement shall remain in effect
from the Closing Date through and including the date upon which all Obligations
shall have been indefeasibly and irrevocably paid and satisfied in full. No
termination of this Agreement shall affect the rights and obligations of the
parties hereto arising prior to such termination.
77
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers, all as of the day and year first
written above.
[CORPORATE SEAL] GOLF TRUST OF AMERICA, L.P., a Delaware
limited partnership
By: GTA GP, Inc., a Maryland corporation,
its general partner
By:
------------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Its Chief Executive Officer and President
[CORPORATE SEAL] GOLF TRUST OF AMERICA, INC., a Maryland
corporation
By:
------------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Its Chief Executive Officer and President
[CORPORATE SEAL] GTA GP, INC., a Maryland corporation
By:
------------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Its Chief Executive Officer and President
[CORPORATE SEAL] GTA LP, INC., a Maryland corporation
By:
----------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Its Chief Executive Officer and President
SANDPIPER--GOLF TRUST, LLC, a Delaware
limited liability company
By: Golf Trust of America, L.P., as Manager
By: GTA GP, Inc., its General Partner
By:
----------------------------------------
Name:
--------------------------------
Title:
--------------------------------
[CORPORATE SEAL] SANDPIPER GTA DEVELOPMENT, INC.
By:
--------------------------------------
Name:
--------------------------------
Title:
--------------------------------
NATIONSBANK, N.A., as Administrative Agent
and Lender
By:
----------------------------------------
Name:
----------------------------------
Title:
----------------------------------
BANKBOSTON, N.A., as Documentation Agent
and Lender
By:
----------------------------------------
Name:
----------------------------------
Title:
----------------------------------
FIRST UNION NATIONAL BANK, as Syndication
Agent and Lender
By:
----------------------------------------
Name:
----------------------------------
Title:
----------------------------------
CREDIT LYONNAIS NEW YORK BRANCH, as Lender
By:
----------------------------------------
Name:
----------------------------------
Title:
----------------------------------
SOCIETE GENERALE, SOUTHWEST AGENCY, as
Lender
By:
----------------------------------------
Name:
----------------------------------
Title:
----------------------------------
SCHEDULE 1: LENDERS AND COMMITMENTS
COMMITMENT
AND COMMITMENT
LENDER PERCENTAGE
------ ----------
NationsBank N.A. $75,000,000
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇ 37.5%
▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
First Union National Bank $40,000,000
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ 20.0%
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
BankBoston, N.A. $40,000,000
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇.▇. 20.0%
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇
Assistant Vice President
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Credit Lyonnais New York Branch $25,000,000
1301 Avenue of the Americas 12.5%
▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇ ▇▇▇▇▇▇▇▇
Vice President
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Societe Generale, Southwest Agency $20,000,000
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇.▇%
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇
Associate
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
EXHIBIT A
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF NOTE
------------
$__________________ March 31, 1999
FOR VALUE RECEIVED, the undersigned, GOLF TRUST OF AMERICA, L.P., a
Delaware limited partnership (the "Borrower"), hereby promises to pay to the
order of ______________________________ (the "Bank"), at the times, at the place
and in the manner provided in the Credit Agreement hereinafter referred to, the
principal sum of up to _____________________________ ($__________), or, if less,
the aggregate unpaid principal amount of all Extensions of Credit disbursed by
the Bank under the Credit Agreement referred to below, together with interest at
the rates as in effect from time to time with respect to each portion of the
principal amount hereof, determined and payable as provided in Article III of
the Credit Agreement.
This Note is one of the Notes referred to in, and is entitled to the
benefits of, the Amended and Restated Credit Agreement, dated as of March 31,
1999 (as amended, restated or otherwise modified, the "Credit Agreement"), by
and among the Borrower, the Guarantors party thereto, the lenders (including the
Bank) who are or may become party thereto (collectively, the "Lenders"),
NationsBank, N.A., as Administrative Agent for the Lenders, First Union National
Bank, as Syndication Agent and BankBoston, N.A., as Documentation Agent. The
Credit Agreement contains, among other things, provisions for the time, place
and manner of payment of this Note, the determination of the interest rate borne
by and fees payable in respect of this Note, acceleration of the payment of this
Note upon the happening of certain stated events and the mandatory repayment of
this Note under certain circumstances.
The Borrower agrees to pay on demand, in accordance with the terms of the
Credit Agreement, all costs of collection, including reasonable attorneys' fees,
if any part of this Note,
A-1
principal or interest, is collected after maturity with the aid of an
attorney.
Presentment for payment, notice of dishonor, protest and notice of protest
are hereby waived.
THIS NOTE IS MADE AND DELIVERED IN THE STATE OF NORTH CAROLINA AND SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NORTH
CAROLINA.
The Debt evidenced by this Note is senior in right of payment to all
Subordinated Debt referred to in the Credit Agreement.
IN WITNESS WHEREOF, the Borrower has caused this Note to be executed under
seal by a duly authorized officer of its General Partner, all as of the day and
year first above written.
GOLF TRUST OF AMERICA, L.P.
[CORPORATE SEAL] By: GTA GP, Inc., its General Partner
By:
-------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
A-2
EXHIBIT B
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF NOTICE OF BORROWING
---------------------------
NationsBank, N.A.
Commercial Banking
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Ladies and Gentlemen:
This irrevocable Notice of Borrowing is delivered to you by Golf Trust of
America, L.P. (the "Borrower") under Section 2.2(a) of the Amended and Restated
Credit Agreement, dated as of March 31, 1999 (as amended, restated or otherwise
modified, the "Credit Agreement"), by and among the Borrower, the Guarantors
party thereto, the lenders who are or may become party thereto (collectively,
the "Lenders"), NationsBank, N.A., as Administrative Agent for the Lenders,
First Union National Bank, as Syndication Agent and BankBoston, N.A., as
Documentation Agent.
1. The Borrower hereby requests that the Lenders make a [Eurodollar] [Base
Rate] Loan in the aggregate principal amount of ___________________ (the
"Loan").(1)
2. The Borrower hereby requests that the Loan be made on the following
Business Day: _____________________.(2)
--------------------
(1) Complete with an amount in compliance with Section 2.2(a) of the Credit
Agreement.
(2) This date should be no earlier than two (2) Business Days after delivery of
this Notice for a Base Rate Loan and no earlier than three (3) Business
Days after delivery of this Notice for a Eurodollar Loan.
B-1
3. $________________ of the Loan shall be used to finance the purchase of
golf courses and $________________ of the Loan proceeds shall be used for
working capital and general corporate requirements.
4. The principal amount of all Extensions of Credit outstanding as of the
date hereof (including the requested Loan) does not exceed the maximum amount
permitted to be outstanding pursuant to the terms of the Credit Agreement.
5. All of the conditions applicable to the Loan requested herein as set
forth in the Credit Agreement have been satisfied as of the date hereof and will
remain satisfied to the date of such Loan.
6. All capitalized undefined terms used herein have the meanings assigned
thereto in the Credit Agreement.
IN WITNESS WHEREOF, the undersigned has executed this Notice of Borrowing
this ____ day of ______________, ______.
GOLF TRUST OF AMERICA, L.P.
By: GTA GP, Inc., its General Partner
By:
-------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
B-2
EXHIBIT C
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF NOTICE OF REPAYMENT
---------------------------
NationsBank, N.A.
Commercial Banking
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Ladies and Gentlemen:
This irrevocable Notice of Repayment is delivered to you by Golf Trust of
America, L.P. (the "Borrower"), under Section 2.3(c) of the Amended and Restated
Credit Agreement, dated as of March 31, 1999 (as amended, restated or otherwise
modified, the "Credit Agreement"), by and among the Borrower, the Guarantors
party thereto, the lenders who are or may become party thereto (collectively,
the "Lenders"), NationsBank, N.A., as Administrative Agent for the Lenders (the
"Administrative Agent") , First Union National Bank, as Syndication Agent and
BankBoston, N.A., as Documentation Agent.
1. The Borrower hereby provides notice to the Administrative Agent that
the Borrower shall repay the Loans in the following amount: _______________.
2. Such Loan(s) to be repaid are [Base Rate] [Eurodollar] Loan(s).
3. The Borrower shall repay such Loan(s) on the following Business Day:
_______________.(1)
--------------------
(1) This date should be no earlier than three (3) Business Days after the
delivery of this Notice.
C-1
4. All capitalized undefined terms used herein have the meanings assigned
thereto in the Credit Agreement.
IN WITNESS WHEREOF, the undersigned has executed this Notice of Repayment
this ____ day of ______________ ,____ .
GOLF TRUST OF AMERICA, L.P.
By: GTA GP, Inc., its General Partner
By:
-------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
C-2
EXHIBIT D
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF NOTICE OF CONVERSION/CONTINUATION
-----------------------------------------
NationsBank, N.A.
Commercial Banking
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇
Ladies and Gentlemen:
This irrevocable Notice of Conversion/Continuation (the "Notice") is
delivered to you by Golf Trust of America, L.P. (the "Borrower") under Section
3.2 of the Amended and Restated Credit Agreement, dated as of March 31, 1999 (as
amended, restated or otherwise modified, the "Credit Agreement"), by and among
the Borrower, the Guarantors party thereto, the lenders referred to therein
(collectively, the "Lenders"), NationsBank, N.A., as Administrative Agent for
the Lenders, First Union National Bank, as Syndication Agent and BankBoston,
N.A., as Documentation Agent.
1. This Notice of Conversion/Continuation is submitted for the purpose of:
(Complete applicable information.)
(a) [Converting] [continuing] a ___________ Loan [into] [as]
a ____________ Loan.(1)
--------------------
(1) Deletethe bracketed language and insert "Base Rate", or "Eurodollar", as
applicable, in each blank.
D-1
(b) The aggregate outstanding principal balance of such Loan is
$_______________.
(c) The last day of the current Interest Period for such Loan is
___________.(2)
(d) The principal amount of such Loan to be [converted] [continued]
is $_______________.(3)
(e) The requested effective date of the [conversion] [continuation]
of such Loan is _______________.(4)
2. No Default or Event of Default exists, and none will exist upon the
conversion or continuation of the Loan requested herein.
3. All capitalized undefined terms used herein have the meanings assigned
thereto in the Credit Agreement.
IN WITNESS WHEREOF, the undersigned has executed this Notice of
Conversion/Continuation this ____ day of _______________ ,_____.
GOLF TRUST OF AMERICA, L.P.
By: GTA GP, Inc., its General Partner
By:
-------------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
--------------------
(2) Insert applicable date for any Eurodollar Loan being converted or continued
(3) Complete with an amount in compliance with Section 3.2 of the Credit
Agreement
(4) This date should be at least three (3) Business Days after the delivery of
this Notice.
D-2
EXHIBIT E
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF OFFICER'S COMPLIANCE CERTIFICATE
----------------------------------------
The undersigned, on behalf of GOLF TRUST OF AMERICA, L.P., a Delaware
limited partnership (the "Borrower"), and each of the Guarantors party to the
Credit Agreement referred to below (each a "Guarantor" and, together with the
Borrower, the "Credit Parties"), hereby certify to the Administrative Agent and
Lenders as follows:
1. This Officer's Compliance Certificate is delivered to you pursuant to
Section 7.2 of the Amended and Restated Credit Agreement, dated as of March 31,
1999 (as amended, restated or otherwise modified, the "Credit Agreement"), by
and among the Borrower, the Guarantors, the lenders who are or may become party
thereto (collectively, the "Lenders"), NationsBank, N.A., as the Administrative
Agent for the Lenders, First Union National Bank, as Syndication Agent and
BankBoston, N.A., as Documentation Agent. Capitalized terms used herein and not
defined herein shall have the meanings assigned thereto in the Credit Agreement.
2. Each of the undersigned has reviewed the financial statements of the
Credit Parties dated as of ____________,199_ and for the fiscal quarter then
ended (the "Reference Date") and such statements fairly present the financial
condition of the Credit Parties as of the dates indicated and the results of
its operations and cash flows for the period indicated.
3. Each of the undersigned has reviewed the terms of the Credit Agreement,
the Notes and the related Loan Documents and has made, or caused to be made
under his or her supervision, a review in reasonable detail of the transactions
and the condition of the Credit Parties during the accounting period covered by
the financial statements referred to in Paragraph 2 above. Such review has not
disclosed the existence during or at the end of such accounting period of any
condition or event that constitutes a Default or an Event of Default, nor does
any of the undersigned have any knowledge of the existence of any such condition
or event as at the date of this Certificate.
4. The Applicable Margin is ___% as shown on SCHEDULE 1.
E-1
5. The Credit Parties are in compliance with the covenants contained in
Article IX of the Credit Agreement as shown on SCHEDULE 2 and the Credit Parties
are in compliance with the other covenants and restrictions contained in
Articles VIII and X of the Credit Agreement.
6. The Gross Golf Revenues of each Seasoned Eligible Property for the
two-quarter period ending on the Reference Date are at least 85% of the Gross
Golf Revenues of such Seasoned Eligible Property for the same two-quarter period
during the immediately preceding year, as shown on SCHEDULE 3.
7. No operator of any Eligible Property is more than thirty days
delinquent in its required payments to the Borrower under the related
Participating Lease or any other relevant agreement between such operator and
the Borrower.
8. The aggregate outstanding amount of loans permitted under Section
10.4(e) of the Credit Agreement PLUS other funds of Borrower utilized at any one
time for the construction of improvements to golf course properties as permitted
under Section 10.11 of the Credit Agreement, exclusive of funds used to
construct the renovations and improvements to the Sandpiper Golf Course, is
$__________________, which amount does not exceed 10% of Total Assets.
WITNESS the following signatures as of ________________, 1999.
GOLF TRUST OF AMERICA, L.P.
By: GTA, GP, Inc., its general partner
By:
-----------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
GOLF TRUST OF AMERICA, INC.
By:
-----------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
GTA GP, INC.
By:
-----------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
E-2
GTA LP, INC.
By:
-----------------------------------
W. ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
Chief Executive Officer and President
SANDPIPER--GOLF TRUST, LLC
By:
----------------------------------
Name:
----------------------------
Manager
SANDPIPER GTA DEVELOPMENT, INC.
By:
----------------------------------
Name:
----------------------------
Title:
----------------------------
E-3
Schedule 1
to
Officer's Compliance Certificate
DETERMINATION OF APPLICABLE MARGIN
SENIOR DEBT RATING.
1. ▇▇▇▇▇'▇ Rating: ______
2. S&P Rating: ______
3. Lower of S&P and ▇▇▇▇▇'▇: ______
IF LINE 3 IS BBB/Baa2 OR HIGHER, APPLICABLE MARGIN = 1.25%
IF LINE 3 IS BBB-/Baa3, APPLICABLE MARGIN = 1.35%
IF LINE 3 IS BELOW BBB-/Baa3,OR IF NO RATING EXISTS, APPLICABLE MARGIN
SHALL BE DETERMINED BY REFERENCE TO THE LEVERAGE RATIO AS OF EACH FISCAL
QUARTER END, AS FOLLOWS:
LEVERAGE RATIO APPLICABLE MARGIN PER ANNUM
-------------- ---------------------------
Greater than or equal to 2.00%
.50 to 1.00
Greater than or equal to 1.75%
.375 to 1.00 but less than
.50 to 1.00
Less than .375 to 1.00 1.50%
E-4
Schedule 2
to
Officer's Compliance Certificate
DETERMINATION OF COMPLIANCE WITH
FINANCIAL COVENANTS
A. MINIMUM TANGIBLE NET WORTH
1. The sum of the following as of the immediately preceding fiscal
quarter end:
a. $250,000,000 $250,000,000
b. PLUS 80% of aggregate net cash proceeds
from the issuance of or offering of
capital stock after the Closing Date $ __________
c. Minimum Tangible Net Worth
(add lines 1.a and 1.b) $ __________
2. Actual Tangible Net Worth
as of such date $ __________
B. MAXIMUM LIABILITIES TO ASSETS RATIO
1. Total Liabilities as of the immediately
preceding fiscal quarter end $ __________
2. Total Assets as of the immediately
preceding fiscal quarter end $ __________
3. Ratio of Total Liabilities to Total Assets
(divide line 1 by line 2) __________
4. Maximum Permitted Ratio 0.55 to 1.00
C. MINIMUM INTEREST COVERAGE RATIO
1. EBITDA for the immediately preceding quarter $ __________
2. Interest Expense for
such quarter $ __________
E-5
3. Interest Coverage Ratio
(divide line 1 by line 2) __________
4. Minimum Interest Coverage Ratio 2.50 to 1.00
D. MINIMUM DEBT SERVICE COVERAGE RATIO
1. EBITDA for the immediately preceding quarter $ __________
2. Debt Service for such quarter
a. Interest Expense for
such quarter $ __________
b. PLUS, principal payments of Debt
for such quarter $ __________
c. Debt Service (add lines 2.a and 2.b) $ __________
3. Debt Service Coverage Ratio
(divide line 1 by line 2.c) ____________
4. Minimum Debt Service Coverage Ratio 2.00 to 1.00
E. MINIMUM FIXED CHARGE COVERAGE RATIO
1. EBITDA for the immediately preceding quarter $ __________
2. Fixed Charges for such quarter $ __________
3. Fixed Charge Coverage Ratio
(divide line 1 by line 2) __________
4. Minimum Fixed Charge Coverage Ratio 1.50 to 1.00
E-6
Schedule 3
to
Officer's Compliance Certificate
DETERMINATION OF COMPLIANCE WITH
GROSS GOLF REVENUE STANDARD
Gross Golf Revenues for Gross Golf Revenues for
Eligible Property Current 2-Quarter Period For Period From Prior Year % Change
----------------- ------------------------ -------------------------- --------
E-7
EXHIBIT F
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF ASSIGNMENT AND ACCEPTANCE
Reference is made to the Amended and Restated Credit Agreement dated as of
March 31, 1999 (as amended, restated or otherwise modified, the "Credit
Agreement") among Golf Trust of America, L.P., a Delaware limited partnership
(the "Borrower"), the Guarantors party thereto, the Lenders (as defined in the
Credit Agreement), NationsBank, N.A., as Administrative Agent for the Lenders
(the "Administrative Agent"), First Union National Bank, as Syndication Agent
and BankBoston, N.A., as Documentation Agent. Terms defined in the Credit
Agreement are used herein with the same meaning.
The "Assignor" and the "Assignee" referred to on Schedule 1 agree as
follows:
1. The Assignor hereby sells and assigns to the Assignee, without recourse
and without representation or warranty except as expressly set forth herein, and
the Assignee hereby purchases and assumes from the Assignor, an interest in and
to the Assignor's rights and obligations under the Credit Agreement and the
other Loan Documents as of the date hereof equal to the percentage interest
specified on Schedule 1 of all outstanding rights and obligations of Assignor
under the Credit Agreement and the other Loan Documents. After giving effect to
such sale and assignment, the Assignee's Commitment and the amount of the Loans
owing to the Assignee will be as set forth on Schedule 1.
2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Loan Documents
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Loan Documents or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under the
Loan Documents or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Note held by the Assignor and requests that the
Administrative
F-1
Agent exchange such Note for new Notes payable to the order of the Assignee
in an amount equal to the Commitment assumed by the Assignee pursuant hereto
and to the Assignor in an amount equal to the Commitment retained by the
Assignor, if any, as specified on Schedule 1.
3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 7.1 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Administrative Agent, the Assignor or any other
Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking
or not taking action under the Credit Agreement; (iii) confirms that it is an
Eligible Assignee; (iv) appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers and
discretion under the Credit Agreement as are delegated to the Administrative
Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; (v) agrees that it will perform in accordance
with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Lender; and (vi) attaches
any U.S. Internal Revenue Service or other forms required under Section 3.13
of the Credit Agreement.
4. Following the execution of this Assignment and Acceptance, it will
be delivered to the Administrative Agent for acceptance and recording by the
Administrative Agent. The effective date for this Assignment and Acceptance
(the "Effective Date") shall be the date of acceptance hereof by the
Administrative Agent, unless otherwise specified on Schedule 1.
5. Upon such acceptance and recording by the Administrative Agent, as
of the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Acceptance, have
the rights and obligations of a Lender thereunder and (ii) the Assignor
shall, to the extent provided in this Assignment and Acceptance, relinquish
its rights and be released from its obligations under the Credit Agreement.
6. Upon such acceptance and recording by the Administrative Agent, from
and after the Effective Date, the Administrative Agent shall make all
payments under the Credit Agreement and the Notes in respect of the interest
assigned hereby (including, without limitation, all payments of principal,
interest and commitment fees with respect thereto) to the Assignee. The
Assignor and Assignee shall make all appropriate adjustments in payments
under the Credit Agreement and the Notes for periods prior to the Effective
Date directly between themselves.
7. This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of North Carolina.
8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of Schedule 1 to this Assignment and Acceptance by
telecopier shall be effective as delivery of a manually executed counterpart
of this Assignment and Acceptance.
F-2
IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1
to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.
F-3
SCHEDULE 1
to
ASSIGNMENT AND ACCEPTANCE
Percentage interest assigned: _______%
Assignee's Commitment: $ ____________
Aggregate outstanding principal amount
of Loans assigned: $ ____________
Principal amount of Note payable to Assignee: $ ____________
Principal amount of Note payable to Assignor: $ ____________
Effective Date (if other than date
of acceptance by Agent): ____________ , _____________(1)
[NAME OF ASSIGNOR], as Assignor
By: ________________________
Title: _____________________
Dated: _________________, 19___
[NAME OF ASSIGNEE], as Assignee
By: ____________________
Title: _________________
Domestic Lending Office: ______________
Eurodollar Lending Office: ____________
-----------------
(1) This date should be no earlier than five Business Days after the delivery
of this Assignment and Acceptance to the Administrative Agent.
F-4
Accepted and Approved
this ____ day of ___________________, ___________
NATIONSBANK, N.A.
By: _________________________
Name: __________________
Title: __________________
F-5
EXHIBIT G
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF GUARANTY SUPPLEMENT
GUARANTY SUPPLEMENT, dated as of __________, (the "Supplement"), made by
[INSERT NAME OF NEW GUARANTOR], a ____________________ (the "New Guarantor"), in
favor of NATIONSBANK, N.A., as Administrative Agent, under the Credit Agreement
(as defined below) for the ratable benefit of itself and the Lenders.
1. Reference is hereby made to the Guaranty (as amended, restated, or
otherwise modified, the "Guaranty") set forth in Article IV of the Amended and
Restated Credit Agreement (as amended, restated or otherwise modified, the
"Credit Agreement") dated as of March 31, 1999, between Golf Trust of America,
L.P. as Borrower, the Guarantors party thereto, the lenders who are or may
become party thereto (the "Lenders"), NationsBank, N.A., as Administrative Agent
for the Lenders, First Union National Bank, as Syndication Agent and BankBoston,
N.A., as Documentation Agent. This Supplement supplements the Guaranty, forms a
part thereof and is subject to the terms thereof. Capitalized terms used and not
defined herein shall have the meanings given thereto or referenced in the Credit
Agreement.
2. The New Guarantor hereby agrees to unconditionally guarantee to the
Administrative Agent for the ratable benefit of itself, the Lenders and their
respective successors, endorsees, transferees and assigns, the prompt payment
(whether at stated maturity, by acceleration or otherwise) and performance of
all Guaranteed Obligations to the same extent and upon the same terms and
conditions as are contained in the Guaranty.
3. The New Guarantor hereby agrees that it is a party to the Credit
Agreement and the Guaranty as if a signatory thereto on the Closing Date of the
Credit Agreement, and the New Guarantor shall comply with all of the terms,
covenants, conditions and agreements and hereby makes each representation and
warranty, in each case set forth therein. The New Guarantor agrees that the
"Guaranty" as used therein or in any other Loan Documents shall mean the
Guaranty as supplemented hereby.
G-1
4. The New Guarantor hereby acknowledges it has received a copy of the
Credit Agreement and that it has read and understands the terms thereof.
IN WITNESS WHEREOF, the undersigned hereby causes this Supplement to be
executed and delivered as of the date first above written.
[CORPORATE SEAL] [INSERT NAME OF NEW GUARANTOR]
By: _____________________________
Name: ___________________________
Title: ___________________________
G-2
EXHIBIT H
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF POOL VALUATION CERTIFICATE
Effective Date: ________________________
Eligible Property Property Value
---------------- --------------
Unsecured Debt of all Credit Parties $ ____________
Outstanding Obligations (after giving $ ____________
Effect to any requested Loan or issuance of
Letter of Credit)
Total $ ____________
POOL VALUE = _____ %
Total Unsecured Debt
(Pool Value must be equal to or greater than 1.75% of the unsecured Debt
of all Credit Parties.)
H-1
This Certificate is furnished to the Administrative Agent in accordance with the
Credit Agreement dated March 31, 1999 (the "Credit Agreement") between Golf
Trust of America, L.P., the Guarantors party thereto, the Lenders party thereto,
NationsBank, N.A. as Administrative Agent, First Union National Bank, as
Syndication Agent and BankBoston, N.A., as Documentation Agent. Capitalized
terms used but not defined herein shall have the respective meanings set forth
in the Credit Agreement. The undersigned certifies that the Property Values set
forth above were determined in accordance with Section 8.10(b) of the Credit
Agreement and are correct as of the date of this Certificate.
This Pool Valuation Certificate is made and delivered this _____ day of
_____________, 19___.
GOLF TRUST OF AMERICA, L.P., a Delaware
limited partnership
By: GTA, GP, Inc., a Maryland
corporation, its general partner
By: ________________________________
Name: __________________________
Title: _________________________
H-2
EXHIBIT I
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF "K-1" REPORT
EXHIBIT J-1
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF NEW LENDER SUPPLEMENT
THIS NEW LENDER SUPPLEMENT dated as of the ___ day of ________, ______
(this "New Lender Supplement"), to the Agreement referred to below is entered
into by and among GOLF TRUST OF AMERICA, L.P. (the "Company"), NATIONSBANK,
N.A., as Administrative Agent (the "Administrative Agent") and
_________________________ (the "New Lender").
STATEMENT OF PURPOSE
The Company is the Borrower under the Amended and Restated Credit
Agreement dated as of March 31, 1999 (as supplemented hereby and as further
amended, supplemented or otherwise modified, the "Credit Agreement"), among the
Company, the Guarantors party thereto, the Lenders, the Administrative Agent,
First Union National Bank, as Syndication Agent and Boston, N.A., as
Documentation Agent.
Pursuant to Section 2.6 of the Credit Agreement, the Borrower is entitled
to increase the total amount of the Aggregate Commitment thereunder by accepting
the offer of any Person (other than a Lender) constituting an Eligible Assignee
to become a New Lender thereunder. Pursuant to such Section the New Lender,
Borrower and Administrative Agent hereby agree that the New Lender shall be a
Lender under the Credit Agreement and in connection therewith execute this New
Lender Supplement.
NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the parties hereto hereby agree as follows:
SECTION 1. JOINDER OF NEW LENDER.
(a) JOINDER. Pursuant to Section 2.6 of the Credit Agreement, the New
Lender hereby agrees that it is a Lender under the Credit Agreement as if a
signatory thereto on the Closing Date, and the New Lender shall comply with and
be subject to and have the benefit of all of the terms, conditions, covenants,
agreements and obligations set forth therein. The New Lender
J1-1
hereby agrees that each reference to a "Lender" or the "Lenders" in the
Credit Agreement shall include the New Lender. The New Lender acknowledges
that it has received a copy of the Credit Agreement and that it has read and
understands the terms thereof.
(b) COMMITMENT ADJUSTMENT. If any Loans are outstanding on the date
hereof, the Administrative Agent shall make such transfers of funds as are
necessary in order that the outstanding balance of such loans reflects the
Commitment Percentages of the Lenders after giving effect to the joinder of the
New Lender pursuant to this New Lender Supplement and any increase in the
Aggregate Commitment pursuant hereto. The Credit Agreement is hereby amended to
reflect the increase in the Aggregate Commitment of the Lenders in accordance
with the terms of this New Lender Supplement.
(c) UPDATED SCHEDULE. Attached hereto is an updated SCHEDULE 1 to the
Credit Agreement revised to include the joinder of The New Lender as a Lender
and its Commitment thereunder and the corresponding increase in the total amount
of the Aggregate Commitment. The Credit Agreement is hereby amended to add
SCHEDULE 1 hereto in place of Schedule 1 to the Credit Agreement.
(d) LETTERS OF CREDIT. If any Letters of Credit are outstanding on the
date hereof, the Administrative Agent shall make appropriate arrangements so
that, after giving effect to the joinder of the New Lender contemplated hereby,
each Lender's Letter of Credit Obligations are equal to such Lender's Commitment
Percentage of the Letter of Credit Obligations of all the Lenders. In its
capacity as an L/C Participant under the Credit Agreement, the New Lender hereby
purchases a participation in all Letters of Credit in accordance with Section
2A.4 of the Credit Agreement.
SECTION 2. REPRESENTATIONS AND WARRANTIES.
(a) BORROWER. The Borrower hereby confirms that each representation and
warranty made by it under the Loan Documents is true and correct in all material
respects as of the date hereof and that no Default or Event of Default has
occurred or is continuing under the Credit Agreement.
(b) NEW LENDER. The New Lender hereby represents and warrants that it is
an Eligible Assignee.
SECTION 3. GENERAL PROVISIONS.
(a) LIMITED EFFECT. Except as supplemented hereby, the Credit Agreement
and each other Loan Document shall continue to be, and shall remain, in full
force and effect. This Agreement shall not be deemed (i) to be a waiver of, or
consent to, or a modification or amendment of, any other term or condition of
the Credit Agreement or (ii) to prejudice any right or rights which the
Administrative Agent or Lenders may now have or may have in the future under or
in connection with the Credit Agreement or the other Loan Documents or any of
the instruments or agreements referred to therein, as the same may be amended or
modified from time to time.
J1-2
(b) COSTS AND EXPENSES. The Borrower hereby agrees to pay or reimburse the
Administrative Agent for all reasonable and customary out-of-pocket costs and
expenses incurred in connection with the preparation, negotiation and execution
of this Agreement including, without limitation, the reasonable fees and
disbursements of counsel.
(c) COUNTERPARTS. This Agreement may be executed by one or more of the
parties hereto in any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.
(d) DEFINITIONS. All capitalized terms used and not defined herein shall
have the meanings given thereto in the Credit Agreement.
(e) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT
REFERENCE TO THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF.
IN WITNESS WHEREOF the undersigned have duly executed this Increasing
Lender Supplement as of the date first above written.
GOLF TRUST OF AMERICA, L.P.
[CORPORATE SEAL]
By: ____________________________________
Name: _________________________________
Title: _________________________________
NATIONSBANK, N.A.,
as Administrative Agent
By: _____________________________________
Name: __________________________________
Title: __________________________________
[NEW LENDER]
[CORPORATE SEAL]
By: _____________________________________
Name: __________________________________
Title: __________________________________
J1-3
EXHIBIT J-2
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
COMMITMENT INCREASE SUPPLEMENT
This Commitment Increase Supplement, dated as of the day of ,
199 (this "Commitment Increase Supplement"), to the Credit Agreement referred
to below is entered into by and among GOLF TRUST OF AMERICA, L.P. (the
"Company"), a limited partnership formed under the laws of Delaware,
NATIONSBANK, N.A., as Administrative Agent (the "Administrative Agent") and
(the "Increasing Lender").
STATEMENT OF PURPOSE
The Company is the Borrower under the Amended and Restated Credit
Agreement dated as of March 31, 1999 (as supplemented hereby and as further
amended, supplemented or otherwise modified, the "Credit Agreement"), among the
Company, the Guarantors party thereto, the Increasing Lender, the other Lenders
party thereto, the Administrative Agent, First Union National Bank, as
Syndication Agent and BankBoston, N.A., as Documentation Agent.
Pursuant to Section 2.6 of the Credit Agreement, the Borrower is entitled
to increase the Aggregate Commitment thereunder by accepting the offer of a
Lender to increase its Commitment thereunder. Pursuant to such Section the
Increasing Lender, the Borrower and the Administrative Agent hereby agree that
the Commitment of the Increasing Lender under the Credit Agreement shall be
increased as set forth herein and in connection therewith execute this
Commitment Increase Supplement.
NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the parties hereto hereby agree as follows:
SECTION 1. COMMITMENT INCREASE.
(a) COMMITMENT INCREASE. Pursuant to Section 2.6 of the Credit Agreement,
the Increasing Lender hereby agrees that its Commitment under the Credit
Agreement shall be
J2-1
increased to $ _______________.
(b) COMMITMENT ADJUSTMENT. If any Loans are outstanding on the date
hereof, the Administrative Agent shall make such transfer of funds as are
necessary in order that the outstanding balance of such Loans reflects the
Commitment Percentages of the Lenders after giving effect to the increase in the
Commitment of the Increasing Lender and the corresponding increase in the
Aggregate Commitment pursuant hereto. The Credit Agreement is hereby amended to
reflect the increase in the Aggregate Commitment and Commitment of the Lenders
in accordance with the terms of this New Lender Supplement.
(c) UPDATED SCHEDULE. Attached hereto is an updated SCHEDULE 1 to the
Credit Agreement revised to include the increase in the Increasing Lender's
Commitment thereunder and the corresponding increase in the Aggregate
Commitment. The Credit Agreement is hereby amended to add SCHEDULE 1 hereto in
place of Schedule 1 to the Credit Agreement.
(d) LETTERS OF CREDIT. If any Letters of Credit are outstanding on the
date hereof, the Administrative Agent shall make appropriate arrangements so
that, after giving effect to the increase in the Commitment of the Increasing
Lender's Commitment contemplated hereby, each Lender's Letter of Credit
Obligations are equal to such Lender's Commitment Percentage of the Letter of
Credit Obligations of all the Lenders.
SECTION 2. REPRESENTATIONS AND WARRANTIES. The Borrower hereby confirms
that each representation and warranty made by it under the Loan Documents is
true and correct in all material respects as of the date hereof and that no
Default or Event of Default has occurred or is continuing under the Credit
Agreement.
SECTION 3. GENERAL PROVISIONS.
(a) LIMITED EFFECT. Except as supplemented hereby, the Credit Agreement
and each other Loan Document shall continue to be, and shall remain, in full
force and effect. This Agreement shall not be deemed (i) to be a waiver of, or
consent to, or a modification or amendment of, any other term or condition of
the Credit Agreement or (ii) to prejudice any right or rights which the
Administrative Agent or Lenders may now have or may have in the future under or
in connection with the Credit Agreement or the other Loan Documents or any of
the instruments or agreements referred to therein, as the same may be amended or
modified from time to time.
(b) COSTS AND EXPENSES. The Borrower hereby agrees to pay or reimburse the
Administrative Agent for all reasonable and customary out-of-pocket costs and
expenses incurred in connection with the preparation, negotiation and execution
of this Agreement including, without limitation, the reasonable fees and
disbursements of counsel.
(c) COUNTERPARTS. This Agreement may be executed by one or more of the
parties hereto in any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.
J2-2
(d) DEFINITIONS. All capitalized terms used and not defined herein shall
have the meanings given thereto in the Credit Agreement.
(e) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT
REFERENCE TO THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF.
IN WITNESS WHEREOF the undersigned have duly executed this Commitment
Increase Supplement as of the date first above written.
GOLF TRUST OF AMERICA, L.P.
[CORPORATE SEAL]
By: _____________________________________
Name: __________________________________
Title: __________________________________
NATIONSBANK, N.A.,
as Administrative Agent
By: _____________________________________
Name: __________________________________
Title: __________________________________
[INCREASING LENDER]
[CORPORATE SEAL]
By: _____________________________________
Name: __________________________________
Title: __________________________________
J2-3
EXHIBIT K
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
FORM OF LESSOR'S ESTOPPEL AGREEMENT
K-1
SCHEDULE 1
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
LENDERS AND COMMITMENTS
K-2
SCHEDULE 6.1(a)
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
QUALIFICATIONS
SCHEDULE 6.1(b)
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
CAPITALIZATION
SCHEDULE 6.1(h)
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
EMPLOYEE BENEFIT PLANS
SCHEDULE 6.1(l)
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
MATERIAL CONTRACTS
SCHEDULE 6.1(q)
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
LIENS
SCHEDULE 6.1(r)
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
DEBT AND CONTINGENT OBLIGATIONS
SCHEDULE 8.10
to
Amended and Restated Credit Agreement
Dated as of March 31, 1999
by and among
Golf Trust of America, L.P., as Borrower,
the Guarantors party thereto,
the Lenders party thereto,
NationsBank, N.A., as Administrative Agent for the Lenders,
NationsBanc ▇▇▇▇▇▇▇▇▇▇ Securities LLC, as Sole Lead Arranger and Book
Manager,
First Union National Bank, as Syndication Agent
and
BankBoston, N.A., as Documentation Agent
UNENCUMBERED POOL
(LIST OF PROPERTIES AND PROPERTY VALUE OF EACH)
ELIGIBLE PROPERTY PROPERTY VALUE