LOAN AGREEMENT
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ARTICLE 1 CERTAIN DEFINITIONS | 2 | |||
Section 1.1 Certain Definitions | 2 | |||
Section 1.2 Types of Loans | 30 | |||
ARTICLE 2 LOAN TERMS | 31 | |||
Section 2.1 The Commitments, Loans and Notes | 31 | |||
Section 2.2 Conversions or Continuations of Loans | 32 | |||
Section 2.3 Interest Rate; Late Charge | 32 | |||
Section 2.4 Terms of Payment | 33 | |||
Section 2.5 Extension of Maturity Date | 36 | |||
Section 2.6 Exit Fee | 41 | |||
Section 2.7 Cash Management | 42 | |||
Section 2.8 Payments; Pro Rata Treatment; Etc. | 42 | |||
Section 2.9 Yield Protection; Etc. | 46 | |||
Section 2.10 Administration Fee | 51 | |||
Section 2.11 Take-Out Obligations | 52 | |||
ARTICLE 3 INSURANCE, CONDEMNATION, AND IMPOUNDS | 53 | |||
Section 3.1 Insurance | 53 | |||
Section 3.2 Condemnation Awards | 56 | |||
Section 3.3 Use and Application of Insurance Proceeds | 56 | |||
Section 3.4 Disbursement of Proceeds | 57 | |||
ARTICLE 4 RESERVES | 60 | |||
Section 4.1 Real Estate Tax and Insurance Reserve Fund | 60 | |||
Section 4.2 Seasonality Reserve Fund | 61 | |||
Section 4.3 Construction Completion Fund | 62 | |||
Section 4.4 Reserve Funds and Security Accounts Generally | 62 | |||
ARTICLE 5 ENVIRONMENTAL MATTERS | 64 | |||
Section 5.1 Certain Definitions | 64 | |||
Section 5.2 Representations and Warranties on Environmental Matters | 65 | |||
Section 5.3 Covenants on Environmental Matters | 65 | |||
Section 5.4 Allocation of Risks and Indemnity | 66 | |||
Section 5.5 No Waiver | 67 | |||
ARTICLE 6 LEASING MATTERS | 68 | |||
Section 6.1 Representations and Warranties on Leases | 68 | |||
Section 6.2 Restaurant Lease and Future Lease | 68 | |||
Section 6.3 Covenants | 68 |
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(continued)
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ARTICLE 7 REPRESENTATIONS AND WARRANTIES | 68 | |||
Section 7.1 Organization and Power | 68 | |||
Section 7.2 Validity of Loan Documents | 68 | |||
Section 7.3 Liabilities; Litigation | 69 | |||
Section 7.4 Taxes and Assessments | 69 | |||
Section 7.5 Other Agreements; Defaults | 69 | |||
Section 7.6 Compliance with Law | 69 | |||
Section 7.7 Location of Borrower | 70 | |||
Section 7.8 ERISA | 70 | |||
Section 7.9 Margin Stock | 70 | |||
Section 7.10 Tax Filings | 70 | |||
Section 7.11 Solvency | 70 | |||
Section 7.12 Full and Accurate Disclosure | 70 | |||
Section 7.13 Single Purpose Entity | 70 | |||
Section 7.14 Management of the Project | 71 | |||
Section 7.15 No Conflicts | 71 | |||
Section 7.16 Title | 71 | |||
Section 7.17 Flood Zone | 71 | |||
Section 7.18 Insurance | 71 | |||
Section 7.19 Certificate of Occupancy; Licenses | 72 | |||
Section 7.20 Physical Condition | 72 | |||
Section 7.21 Boundaries | 72 | |||
Section 7.22 Material Agreements | 72 | |||
Section 7.23 Construction Budget | 73 | |||
Section 7.24 Filing and Recording Taxes | 73 | |||
Section 7.25 Investment Company Act | 73 | |||
Section 7.26 Patriot Act; Foreign Assets Control Regulations | 74 | |||
Section 7.27 Organizational Structure | 74 | |||
Section 7.28 Property Specific Representations | 74 | |||
ARTICLE 8 FINANCIAL REPORTING | 75 | |||
Section 8.1 Financial Statements | 75 | |||
Section 8.2 Accounting Principles | 77 | |||
Section 8.3 Other Information | 77 | |||
Section 8.4 Annual Operating Budget | 77 | |||
Section 8.5 Audits | 77 | |||
Section 8.6 Access | 78 |
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(continued)
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ARTICLE 9 COVENANTS | 78 | |||
Section 9.1 Due on Sale and Encumbrance; Transfers of Interests | 78 | |||
Section 9.2 Taxes; Charges | 80 | |||
Section 9.3 Control; Management | 80 | |||
Section 9.4 Operation; Maintenance; Inspection | 80 | |||
Section 9.5 Taxes on Security | 81 | |||
Section 9.6 Legal Existence; Name, Etc. | 81 | |||
Section 9.7 Affiliate Transactions | 81 | |||
Section 9.8 Limitation on Other Debt | 82 | |||
Section 9.9 Further Assurances | 82 | |||
Section 9.10 Estoppel Certificates | 82 | |||
Section 9.11 Notice of Certain Events | 82 | |||
Section 9.12 Indemnification | 83 | |||
Section 9.13 Size of Units | 83 | |||
Section 9.14 Minimum Sales Prices | 83 | |||
Section 9.15 Hedge Agreements | 83 | |||
Section 9.16 No Distributions | 85 | |||
Section 9.17 Condominium Covenants | 85 | |||
Section 9.18 Patriot Act Compliance; Foreign Assets Control Regulations | 86 | |||
Section 9.19 Payment for Labor and Materials | 87 | |||
Section 9.20 Hotel Management Agreement | 88 | |||
Section 9.21 Americans with Disabilities | 88 | |||
Section 9.22 Zoning | 89 | |||
Section 9.23 ERISA | 89 | |||
Section 9.24 Property Specific Covenants | 89 | |||
Section 9.25 Construction Management Contract | 90 | |||
ARTICLE 10 EVENTS OF DEFAULT | 90 | |||
Section 10.1 Payments | 90 | |||
Section 10.2 Insurance | 90 | |||
Section 10.3 Single Purpose Entity | 90 | |||
Section 10.4 Taxes | 90 | |||
Section 10.5 Sale, Encumbrance, Etc.; Change of Control | 90 | |||
Section 10.6 Representations and Warranties | 90 | |||
Section 10.7 Other Encumbrances | 91 | |||
Section 10.8 Various Covenants | 91 | |||
Section 10.9 Involuntary Bankruptcy or Other Proceeding | 91 | |||
Section 10.10 Voluntary Petitions, Etc. | 91 | |||
Section 10.11 Indebtedness | 91 | |||
Section 10.12 Dissolution | 91 | |||
Section 10.13 Judgments | 92 | |||
Section 10.14 Security | 92 | |||
Section 10.15 Guarantees | 92 | |||
Section 10.16 Security Accounts | 92 | |||
Section 10.17 Hedge Agreement | 92 | |||
Section 10.18 Junior Loan Intercreditor Agreement | 92 | |||
Section 10.19 Covenants | 92 |
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ARTICLE 11 REMEDIES | 93 | |||
Section 11.1 Remedies — Insolvency Events | 93 | |||
Section 11.2 Remedies — Other Events | 93 | |||
Section 11.3 Administrative Agent’s Right to Perform the Obligations | 93 | |||
ARTICLE 12 MISCELLANEOUS | 94 | |||
Section 12.1 Notices | 94 | |||
Section 12.2 Amendments, Waivers, Etc | 94 | |||
Section 12.3 Limitation on Interest | 95 | |||
Section 12.4 Invalid Provisions | 96 | |||
Section 12.5 Reimbursement of Expenses | 96 | |||
Section 12.6 Approvals; Third Parties; Conditions | 97 | |||
Section 12.7 Lenders and Administrative Agent Not in Control; No Partnership | 97 | |||
Section 12.8 Time of the Essence | 97 | |||
Section 12.9 Successors and Assigns | 97 | |||
Section 12.10 Renewal, Extension or Rearrangement | 98 | |||
Section 12.11 Waivers | 98 | |||
Section 12.12 Cumulative Rights | 98 | |||
Section 12.13 Singular and Plural | 98 | |||
Section 12.14 Phrases | 98 | |||
Section 12.15 Exhibits and Schedules | 98 | |||
Section 12.16 Titles of Articles, Sections and Subsections | 98 | |||
Section 12.17 Promotional Material | 99 | |||
Section 12.18 Survival | 99 | |||
Section 12.19 WAIVER OF JURY TRIAL | 99 | |||
Section 12.20 Remedies of Borrower | 100 | |||
Section 12.21 GOVERNING LAW | 100 | |||
Section 12.22 Entire Agreement | 101 | |||
Section 12.23 Counterparts | 101 | |||
Section 12.24 Assignments and Participations | 101 | |||
Section 12.25 Brokers | 103 | |||
Section 12.26 Right of Setoff | 104 | |||
Section 12.27 Cooperation with Syndication; Componentization | 104 |
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(continued)
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ARTICLE 13 LIMITATIONS ON LIABILITY | 106 | |||
Section 13.1 Limitation on Liability | 106 | |||
Section 13.2 Limitation on Liability of the Administrative Agent’s and the Lenders’ Officers, Employees, etc | 107 | |||
ARTICLE 14 BUILDING CONVERSION; SALE OF UNITS | 107 | |||
Section 14.1 Completion of Building Conversion | 107 | |||
Section 14.2 Marketing and Sales Program; Sales of Units; Deposits | 109 | |||
Section 14.3 Partial Release of Units | 109 | |||
Section 14.4 Application of Excess Cash Flow | 110 | |||
Section 14.5 Sale of Parking Spaces | 111 | |||
Section 14.6 Seller Financing Collateral | 112 | |||
ARTICLE 15 THE ADMINISTRATIVE AGENT | 113 | |||
Section 15.1 Appointment, Powers and Immunities | 113 | |||
Section 15.2 Reliance by Administrative Agent | 114 | |||
Section 15.3 Defaults | 114 | |||
Section 15.4 Rights as a Lender | 116 | |||
Section 15.5 Standard of Care; Indemnification | 117 | |||
Section 15.6 Non Reliance on Administrative Agent and Other Lenders | 117 | |||
Section 15.7 Failure to Act | 117 | |||
Section 15.8 Resignation of Administrative Agent | 118 | |||
Section 15.9 Consents under Loan Documents | 118 | |||
Section 15.10 Authorization | 118 | |||
Section 15.11 Reserved | 119 | |||
Section 15.12 Defaulting Lenders | 119 | |||
Section 15.13 Liability of the Administrative Agent | 120 | |||
Section 15.14 Transfer of Agency Function | 120 | |||
ARTICLE 16 AMENDMENT AND RESTATEMENT | 120 | |||
ARTICLE 17 RELEASE | 120 |
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EXHIBIT A — LEGAL DESCRIPTION OF PROJECT | ||||
EXHIBIT B — RESERVED | ||||
EXHIBIT C — FORM OF NOTE | ||||
EXHIBIT D — FORM OF ASSIGNMENT AND ACCEPTANCE | ||||
EXHIBIT E — FORM OF NOTICE OF CONVERSION/CONTINUATION | ||||
SCHEDULE 1(a) — COMMITMENTS | ||||
SCHEDULE 1(b) — MINIMUM SALES PRICE SCHEDULE | ||||
SCHEDULE 1(c) — UNIT RELEASE SCHEDULE | ||||
SCHEDULE 2.1 — DISBURSEMENT AND COMPLETION CONDITIONS | ||||
SCHEDULE 2.4(1) — WIRE INSTRUCTIONS | ||||
SCHEDULE 7.19 — LICENSES | ||||
SCHEDULE 7.23 — PROJECT BUDGET | ||||
SCHEDULE 7.27 — ORGANIZATIONAL CHART |
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Number of Business | ||||
Notice | Days Prior | |||
Optional Prepayment | 3 | |||
Conversions into, Continuations as, or borrowings in Base Rate Loans | 3 | |||
Conversions into, Continuations as, borrowings in or changes in duration of Interest Period for, Eurodollar Loans (subject to Section 2.4(6)) | 3 |
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1 | Eurohypo to confirm. |
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LENDER: | EUROHYPO AG, NEW YORK BRANCH | |||
By: | /s/ John Lippmann | |||
Name: | John Lippmann | |||
Title: | Director |
By: | /s/ Stephen Cox | |||
Name: | Stephen Cox | |||
Title: | Director |
New York Branch:
1114 Avenue of the Americas, 29th Floor
New York, New York 10036
Attention: Peter Tzelios
Telecopier No.: (866) 267-7680
1114 Avenue of the Americas, 29th Floor
New York, New York 10036
Attention: Head of Portfolio Operations
Telecopier No.: (866) 267-7680
555 West Fifth Street, Suite 3500
Los Angeles, California 90013
Attention: Marc D. Young, Esq.
Telecopier No.: (213) 892-5454
S-1
BORROWER: | 1100 WEST PROPERTIES, LLC, a Delaware limited liability company | |||
By: | /s/ Marc Gordon | |||
Name: | Marc Gordon | |||
Title: | Vice President |
By: | /s/ Abraham Galbut | |||
Name: | Abraham Galbut | |||
Title: | President |
4770 Biscayne Boulevard
Miami, Florida 33137
Attention: Abraham Galbut
Telecopier: (786) 427-6203
c/o Morgans Hotel Group
475 10th Avenue
New York, New York 10018
Attention: Marc Gordon
Telecopier: (212) 277-4270
1221 Brickell Avenue
Miami, Florida 33131
Attention: Steven Goldman, Esq.
Telecopier: (305) 961-5561
340 Madison Avenue
New York, New York 10017
Attention: Keith M. Pattiz, Esq.
Telecopier: (212) 547-5444
S-2
OF SECTIONS 9.6 and 9.8
a Delaware limited liability company
By: | 1100 WEST HOLDINGS II, LLC, a Delaware limited liability company |
By: | MONDRIAN MIAMI INVESTMENT LLC, a Delaware limited liability company |
By: | MORGANS GROUP LLC, a Delaware limited liability company |
By: | /s/ Marc Gordon | |||
Name: | Marc Gordon | |||
Title: | Authorized Signatory |
By: | SANCTUARY WEST AVENUE LLC, a Delaware limited liability company |
By: | /s/ Abraham Galbut | |||
Name: | ||||
Title: |
S-3
ADMINISTRATIVE AGENT: | EUROHYPO AG, NEW YORK BRANCH, as Administrative Agent | |||
By: | /s/ John Lippmann | |||
Name: | John Lippmann | |||
Title: | Director |
By: | /s/ Stephen Cox | |||
Name: | Stephen Cox | |||
Title: | Director |
New York Branch:
1114 Avenue of the Americas, 29th Floor
New York, New York 10036
Attention: Peter Tzelios
Telecopier No.: (866) 267-7680
1114 Avenue of the Americas, 29th Floor
New York, New York 10036
Attention: Head of Portfolio Operations
Telecopier No.: (866) 267-7680
555 West Fifth Street, Suite 3500
Los Angeles, California 90013
Attention: Marc D. Young, Esq.
Telecopier No.: (213) 892-5454
S-4
LENDER: | CIT LENDING SERVICES CORPORATION, a Delaware corporation | |||
By: | /s/ Raymond M. McGowan | |||
Name: | Raymond M. McGowan | |||
Title: | Vice President, Portfolio Management |
11 West 42nd Street, 7th Floor
New York, New York 10036
Facsimile: (212) 461-5632
Attention: Vice President, Portfolio
505 Fifth Avenue, 14th Floor
New York, New York 10017
Facsimile: (212) 771-9520
Attention: Stephen Millas, Vice President &
Chief Counsel, Commercial Real Estate
7 Times Square, 47th Floor
New York, New York 10036
Facsimile: (212) 938-2906
Attention: Paul W. Cicchetti, Esq.
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LENDER: | KBC BANK NV | |||
By: | /s/ Nicholas A. Philippides | |||
Name: | Nicholas A. Philippides | |||
Title: | Assistant Vice President |
By: | /s/ Sandra T. Johnson | |||
Name: | Sandra T. Johnson | |||
Title: | Managing Director |
1177 Avenue of the Americas, 8thFloor
New York, New York 10036
Attention: Nicholas Phillipides
Telecopier No.: (212) 541-0793
7 Times Square, 47th Floor
New York, New York 10036
Attention: Paul W. Cicchetti, Esq.
Facsimile: (212) 938-2906
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JOINDER PARTIES: | ||||||
/s/ | Abraham Galbut | |||||
ABRAHAM GALBUT | ||||||
/s/ | Keith Menin | |||||
KEITH MENIN | ||||||
/s/ | Seth Frohlich | |||||
SETH FROHLICH | ||||||
MORGANS GROUP LLC, | ||||||
a Delaware limited liability company | ||||||
By: | Morgans Hotel Group Co., | |||||
a Delaware corporation, | ||||||
its managing member |
By: | /s/ Marc Gordon | |||
Name: | Marc Gordon | |||
Title: | CIO |
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Percentage Assigned of Facility/Commitment (set forth, to at least 4 decimals, as a percentage of the Facility and the aggregate Commitments of all Lenders thereunder) | ||||||||
Principal Amount Assigned | ||||||||
Current Outstanding | ||||||||
Loans Assigned: | $ | %2 | ||||||
Future Funding Commitment: | ||||||||
[Fees Assigned (if any):] | $ | % |
[NAME OF ASSIGNOR], as Assignor | ||||
By: | ||||
Name: | ||||
Title: |
[NAME OF ASSIGNEE], as Assignee | ||||
By: | ||||
Name: | ||||
Title: |
1 | Must be at least five Business Days after execution hereof by all required parties. | |
2 | Delete if no future advances are involved. |
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EUROHYPO AG, NEW YORK BRANCH, as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: |
By: | ||||
Name: | ||||
Title: |
3 | Consent to be included to the extent required by Section 11.24(2) of the Agreement. |
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as Administrative Agent
1114 Avenue of the Americas, 29th Floor
New York, New York 10036
Attn: Loan Servicing
Re: | Amended and Restated Loan Agreement dated as of November [_____], 2008 (as the same may be amended, modified or supplemented from time to time, the “Agreement”) by and among 1100 WEST PROPERTIES, LLC, a Delaware limited liability company (the “Borrower”), the lenders from time to time party to the Agreement (the “Lenders”), and EUROHYPO AG, NEW YORK BRANCH, as Administrative Agent on behalf of the Lenders (the “Administrative Agent”) |
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1100 WEST PROPERTIES, LLC, a Delaware limited liability company | ||||
By: | ||||
Name: | ||||
Title: |
By: | ||||
Name: | ||||
Title: |
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to Notice of Conversion/Continuation
A. | All conversions and continuations must be of a Loan, or portion thereof, in a principal amount of $1,000,000 or a multiple of $100,000 in excess thereof. |
B. | Conversions/continuations to a Eurodollar Loan under paragraphs (2) and (3) below are not permitted if, after giving effect to thereto, (a) there would be more than five (5) different Eurodollar Loans in effect, or (b) the aggregate outstanding principal amount of all Eurodollar Loans would be reduced to be less than $1,000,000. |
(1) | Conversion of a Eurodollar Loan into a Base Rate Loan. | ||
The following Eurodollar Loan to a Base Rate Loan: |
Amount: | $ | |||
Requested Conversion Date: (must be a Business Day at least three (3) Business Days after date of notice) | ||||
Last day of current Interest Period: |
(2) | Conversion of a Base Rate Loan into a Eurodollar Loan. | ||
The following Base Rate Loan to a Eurodollar Loan: |
Amount: | $ | |||
Requested Conversion Date: (must be a Business Day at least three (3) Business Days after date of notice) | ||||
Requested Interest Period: (14 days or 1, 2, 3, or 6 months) |
(3) | Continuation of a Eurodollar Loan into a Subsequent Interest Period. | ||
The following Eurodollar Loan into a subsequent Interest Period: |
Amount: | $ | |||
Last day of current Interest Period: (must be a Business Day at least three (3) Business Days after date of notice) | ||||
Requested Interest Period: (14 days or 1, 2, 3, or 6 months) |
E-3
LENDER | COMMITMENT | |||
CIT LENDING SERVICES CORPORATION | 31.78 | % | ||
KBC BANK NV | 31.02 | % | ||
EUROHYPO AG, NEW YORK BRANCH | 37.20 | % |
Schedule 1(a) - 1
Schedule 1(b) - 1
Schedule 1(c) - 1
Schedule 2.1 - 1
Schedule 2.1 - 2
Schedule 2.1 - 3
Schedule 2.1 - 4
Schedule 2.4 - 1