arrow left
arrow right
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
  • Commercial Mortgage Pass-Through Certificates, et al vs ''John Doe #1''
					  through
						
                                

Preview

FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 EXHIBIT 3 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 Loan No. 31-0923243 =========-============================-==============-========== LOAN AGREEMENT Dated as of June 11, 2014 Between EROS MANAGEMENT & REALTY, LLC, as Borrower and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 TABLE OF CONTENTS Page ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION.............................................1 Section 1.1 Definitions....................................................................................................1 Section 1.2 Principles of Construction..........................................................................16 ARTICLE 2 GENERAL TERMS..................................................................................................17 Section 2.1 The Loan....................................................................................................17 Section 2.2 Disbursement to Borrower.........................................................................17 Section 2.3 The Note and the other Loan Documents..................................................17 Section 2.4 Use of Proceeds..........................................................................................17 Section 2.5 Interest Rate...............................................................................................17 Section 2.6 Loan Payments...........................................................................................18 Section 2.7 Prepayments...............................................................................................19 ARTICLE 3 REPRESENTATIONS AND WARRANTIES.........................................................20 Section 3.1 Legal Status and Authority. .......................................................................20 Section 3.2 Validity of Documents...............................................................................20 Section 3.3 Litigation....................................................................................................21 Section 3.4 Agreements................................................................................................21 Section 3.5 Financial Condition....................................................................................22 Section 3.6 Disclosure. .................................................................................................22 Section 3.7 No Plan Assets...........................................................................................22 Section 3.8 Not a Foreign Person. ................................................................................23 Section 3.9 Business Purposes......................................................................................23 Section 3.10 Borrower Information................................................................................23 Section 3.11 Status of Property.......................................................................................23 Section 3.12 Financial Information.................................................................................24 Section 3.13 Condemnation............................................................................................25 Section 3.14 Separate Lots..............................................................................................25 Section 3.15 Insurance....................................................................................................25 Section 3.16 Use of Property..........................................................................................25 Section 3.17 Leases.........................................................................................................25 Section 3.18 Filing and Recording Taxes.......................................................................25 Section 3.19 Management Agreement............................................................................26 Section 3.20 Illegal Activity/Forfeiture..........................................................................26 Section 3.21 Taxes..........................................................................................................26 Section 3.22 Permitted Encumbrances. ..........................................................................26 Section 3.23 Material Agreements..................................................................................27 Section 3.24 Non-Consolidation Opinion Assumptions.................................................27 Section 3.25 Federal Reserve Regulations......................................................................27 Section 3.26 Investment Company Act..........................................................................27 Section 3.27 Fraudulent Conveyance. ............................................................................27 Section 3.28 Embargoed Person.....................................................................................28 . 1 NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 Section 3.29 Patriot Act..................................................................................................28 Section 3.30 Organizational Chart..................................................................................29 Section 3.31 Bank Holding Company. ...........................................................................29 Section 3.32 Intentionally Omitted.................................................................................29 Section 3.33 REA Representations.................................................................................29 Section 3.34 No Change in Facts or Circumstances.......................................................29 Section 3.35 Perfection of Accounts...............................................................................29 Section 3.36 Intentionally Omitted.................................................................................30 Section 3.37 Guarantor Representations.........................................................................30 Section 3.38 Hotel Management Agreement..................................................................30 Section 3.39 Liquor License...........................................................................................31 ARTICLE 4 BORROWER COVENANTS...................................................................................31 Section 4.1 Existence....................................................................................................31 Section 4.2 Applicable Law..........................................................................................31 Section 4.3 Maintenance and Use of Property..............................................................32 Section 4.4 Waste..........................................................................................................32 Section 4.5 Taxes and Other Charges...........................................................................33 Section 4.6 Litigation....................................................................................................33 Section 4.7 Access to Property. ....................................................................................33 Section 4.8 Notice of Default........................................................................................34 Section 4.9 Cooperate in Legal Proceedings. ...............................................................34 Section 4.10 Performance by Borrower..........................................................................34 Section 4.11 Awards.......................................................................................................34 Section 4.12 Books and Records. ...................................................................................34 Section 4.13 Estoppel Certificates..................................................................................37 Section 4.14 Leases and Rents........................................................................................38 Section 4.15 Hotel Requirements. ..................................................................................39 Section 4.16 Payment for Labor and Materials. .............................................................42 Section 4.17 Performance of Other Agreements. ...........................................................43 Section 4.18 Debt Cancellation.......................................................................................43 Section 4.19 ERISA........................................................................................................43 Section 4.20 No Joint Assessment..................................................................................44 Section 4.21 Alterations..................................................................................................45 Section 4.22 REA Covenants..........................................................................................45 Section 4.23 Material Agreements..................................................................................45 Section 4.24 Certificate of Occupancy. ..........................................................................46 Section 4.25 Liquor License...........................................................................................46 Section 4.26 Violations...................................................................................................47 ARTICLE 5 ENTITY COVENANTS...........................................................................................49 Section 5.1 Single Purpose Entity/Separateness...........................................................49 Section 5.2 Independent Director. ................................................................................53 Section 5.3 Change of Name, Identity or Structure......................................................54 Section 5.4 Business and Operations............................................................................55 .. n NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 ARTICLE 6 NO SALE OR ENCUMBRANCE............................................................................55 Section 6.1 Transfer Definitions...................................................................................55 Section 6.2 No Sale/Encumbrance................................................................................55 Section 6.3 Permitted Equity Transfers........................................................................56 Section 6.4 Permitted Property Transfers (Assumptions).............................................57 Section 6.5 Lender's Rights..........................................................................................59 Section 6.6 Permitted Mezzanine Loan........................................................................60 ARTICLE 7 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION....................62 Section 7.1 Insurance....................................................................................................62 Section 7.2 Casualty......................................................................................................67 Section 7.3 Condemnation............................................................................................67 Section 7.4 Restoration.................................................................................................68 ARTICLE 8 RESERVE FUNDS...................................................................................................72 Section 8.1 Tax Reserve Funds.....................................................................................72 Section 8.2 Insurance Reserve Funds...........................................................................72 Section 8.3 Intentionally Omitted.................................................................................73 Section 8.4 Intentionally Omitted.................................................................................73 Section 8.5 Intentionally Omitted.................................................................................73 Section 8.6 FF&E Reserve Funds.................................................................................73 Section 8.7 Intentionally Omitted.................................................................................75 Section 8.8 The Accounts Generally. ...........................................................................75 ARTICLE 9 CASH MANAGEMENT AGREEMENT................................................................77 Section 9.1 Cash Management Agreement...................................................................77 Section 9.2 Cash Flow Sweep.......................................................................................77 ARTICLE 10 EVENTS OF DEFAULT; REMEDIES..................................................................77 Section 10.1 Event of Default.........................................................................................77 Section 10.2 Remedies....................................................................................................80 ARTICLE 11 SECONDARY MARKET......................................................................................82 j Section 11.1 Securitization.............................................................................................82 Section 11.2 Securitization Indemnification...................................................................85 Section 11.3 REMIC Savings Clause.............................................................................87 Section 11.4 Servicer......................................................................................................87 Section 11.5 Rating Agency Costs..................................................................................88 Section 11.6 Mezzanine Option......................................................................................88 Section 11.7 Conversion to Registered Form.................................................................88 ARTICLE 12 INDEMNIFICATIONS ..........................................................................................89 Section 12.1 General Indemnification............................................................................89 Section 12.2 Mortgage and Intangible Tax and Transfer Tax Indemnification..............89 Section 12.3 ERISA Indemnification. ............................................................................89 Section 12.4 Duty to Defend, Legal Fees and Other Fees and Expenses.......................90 Section 12.5 Survival......................................................................................................90 iii NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 Section 12.6 Environmental Indemnity. .........................................................................90 ARTICLE 13 EXCULPATION.....................................................................................................90 Section 13.1 Exculpation................................................................................................90 Section 13.2 Survival......................................................................................................93 ARTICLE 14 NOTICES................................................................................................................94 Section 14.1 Notices.......................................................................................................94 ARTICLE 15 FURTHER ASSURANCES...................................................................................95 Section 15.1 Replacement Documents...........................................................................95 Section 15.2 Recording of Security Instrument, etc.......................................................95 Section 15.3 Further Acts, etc.........................................................................................95 Section 15.4 Changes in Tax, Debt, Credit and Documentary Stamp Laws..................96 ARTICLE 16 WAIVERS..............................................................................................................96 Section 16.1 Remedies Cumulative; Waivers.................................................................96 Section 16.2 Modification, Waiver in Writing...............................................................97 Section 16.3 Delay Not a Waiver...................................................................................97 Section 16.4 Waiver of Trial by Jury..............................................................................97 Section 16.5 Waiver ofNotice........................................................................................97 Section 16.6 Remedies of Borrower...............................................................................98 Section 16.7 Marshalling and Other Matters. .................................................................98 Section 16.8 Waiver of Statute of Limitations................................................................98 Section 16.9 Waiver of Counterclaim.............................................................................98 Section 16.10 Sole Discretion of Lender..........................................................................98 ARTICLE 17 MISCELLANEOUS...............................................................................................99 Section 17.1 Survival......................................................................................................99 Section 17.2 Governing Law..........................................................................................99 Section 17.3 Headings....................................................................................................99 Section 17.4 Severability................................................................................................99 Section 17.5 Preferences.................................................................................................99 Section 17.6 Expenses..................................................................................................100 Section 17.7 Cost of Enforcement................................................................................100 Section 17.8 Exhibits and Schedules Incorporated.......................................................101 Section 17.9 Offsets, Counterclaims and Defenses......................................................101 Section 17.10 No Joint Venture or Partnership; No Third Party Beneficiaries..............101 Section 17.11 Publicity; Advertising..............................................................................102 Section 17.12 Conflict; Construction of Documents; Reliance......................................103 Section 17.13 Entire Agreement.....................................................................................103 Section 17.14 Liability....................................................................................................103 Section 17.15 Duplicate Originals; Counterparts...........................................................103 . IV NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 SCHEDULES AND EXHIBITS Exhibit A Additional Definitions Exhibit B Approved Intercreditor Agreement Schedule I Intentionally Omitted Schedule II Organizational Chart Schedule III Intentionally Omitted Schedule IV Violations Schedule V Approved Qualified Franchisors V NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 LOAN AGREEMENT THIS LOAN AGREEMENT, dated as of June 11, 2014 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this "Agreement"), between WELLS FARGO BANK, NATIONAL ASSOCIATION, having an address at Wells Fargo Center, 2nd 1901 Harrison Street, Floor, Oakland, California 94612 (together with its successors and/or assigns, "Lender") and EROS MANAGEMENT & REALTY, LLC, a New York limited 35th liability company, having an address at 345 West Street, New York, New York 10001 (together with its successors and/or assigns, "Borrower"). RECITALS: Borrower desires to obtain the Loan (defined below) from Lender. Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (defined below). In consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the parties hereto hereby covenant, agree, represent and warrant as follows: ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: Basis" "30/360 shall mean on the basis of a 360-day year consisting of 12 months of 30 days each. LLC" "Acceptable shall mean a limited liability company formed under Delaware or Maryland law which (i) has at least one springing member, which, upon the dissolution of all of the members or the withdrawal or the disassociation of all of the members from such limited liability company, shall immediately become the sole member of such limited liability company, and (ii) otherwise meets the Rating Agency criteria then applicable to such entities. "Accounts" shall have the meaning set forth in the Cash Management Agreement. "Act" shall have the meaning set forth in Section 5.1(d) hereof. Basis" "Actual/360 shall mean on the basis of a 360-day year and charged on the basis of actual days elapsed for any whole or partial month in which interest is being calculated. "Affiliate" shall mean, as to any Person, any other Person that, directly or indirectly, owns more than twenty percent (20%) of, is in Control of, is Controlled by or is under common NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 ownership or Control with such Person or is a director or officer of such Person or of an Affiliate of such Person. Manager" "Affiliated shall mean any managing agent of the Property in which Borrower, Guarantor, any SPE Component Entity (if any) or any Affiliate of such entities has, directly or indirectly, any legal, beneficial or economic interest. "ALTA" shall mean American Land Title Association, or any successor thereto. Threshold" "Alteration shall mean an amount equal to 3% of the outstanding principal balance of the Loan. Budget" "Annual shall have the meaning set forth in Section 4.12(a)(v). Law" "Applicable shall mean all applicable federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting Borrower or the Property or any part thereof, or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting Borrower or the Property or any part thereof, including, without limitation, any which may (i) require repairs, modifications or alterations in or to the Property or any part thereof, or (ii)in any way limit the use and enjoyment thereof. Expenses" "Approved FF&E shall mean FF&E Expenses incurred by Borrower, which (a) are included in the Annual Budget approved by Lender for the current calendar month or (b) approved by Lender. Provider" "Approved ID shall mean each of CT Corporation, Corporation Service Company, National Registered Agents, Inc., Wilmington Trust Company, Wilmington Trust, National Association, Wilmington Trust SP Services, Inc., Stewart Management Company and Lord Securities Corporation; provided, that, additional national providers of independent directors may be deemed added to the foregoing hereunder to the extent approved in writing by Lender and the Rating Agencies. Franchisor" "Approved Qualified shall mean those franchisors and hotel managers set forth on Schedule V, so long as (i) such entity is not then subject to any action or proceeding under the Bankruptcy Code and (ii)there has been no material adverse change in the business operations, economic performance, assets, condition (financial or otherwise), equity, contingent liabilities, prospects, material agreements or results of operations of the such Approved Qualified Franchisor after the date hereof. Agreement" "Assignment of Management shall mean that certain Conditional Assignment of Management Agreement dated as of the date hereof among Lender, Borrower and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 2 NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 "Award" shall mean any compensation paid by any Governmental Authority in connection with a Condemnation in respect of all or any part of the Property. Code" "Bankruptcy shall mean Title 11 of the United States Code entitle "Bankruptcy", as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws creditors' relating to bankruptcy, insolvency or rights. "Borrower" shall have the meaning set forth in the introductory paragraph hereof. Party" "Borrower shall mean any Person acting on behalf of or at the direction of Borrower, SPE Component Entity, and/or Guarantor. Day" "Business shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in the State of New York are not open for business. Account" "Cash Management shall have the meaning set forth in the Cash Management Agreement. Agreement" "Cash Management shall mean that certain Cash Management Agreement of even date herewith among Lender and Borrower, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. Period" "Cash Trap Event shall have the meaning set forth in the Cash Management Agreement. "Casualty" shall have the meaning set forth in Section 7.2. Consultant" "Casualty shall have the meaning set forth in Section 7.4 hereof. Date" "Closing shall mean the date of the funding of the Loan. "Condemnation" shall mean a temporary or permanent taking by any Governmental Authority as the result, in lieu or in anticipation, of the exercise of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto, including any right of access thereto or any change of grade affecting the Property or any part thereof. Members" "Constituent shall have the meaning set forth in Section 5.2(b) hereof. "Control" shall mean the power to direct the management and policies of an entity, directly or indirectly, whether through the ownership of voting securities or other beneficial interests, by contract or otherwise. Laws" "Creditors Rights shall mean any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to its debts or debtors. 3 NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 "DBRS" shall mean DBRS, Inc. "Debt" shall mean the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all interest accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, this Agreement or the other Loan Documents, including, without limitation, the payment of all sums advanced and costs and expenses incurred (including unpaid or unreimbursed servicing and special servicing fees) by Lender in connection with the enforcement and/or collection of the Debt or any part thereof. Service" "Debt shall mean, with respect to any particular period of time, scheduled principal and/or interest payments under the Loan. Ratio" "Debt Service Coverage shall have the meaning set forth on Exhibit A attached hereto and made a part hereof. All capitalized terms in such definition are also set forth on Exhibit A. "Default" shall mean the occurrence of any event hereunder or under the Note or the other Loan Documents which, but for the giving of notice or passage of time, or both, would be an Event of Default. Rate" "Default shall mean, with respect to the Loan, a rate per annum equal to the lesser of (i)the Maximum Legal Rate, or (ii)the sum of (a) the Interest Rate and (b) five percent (5%). Plan" "Defined Benefit shall mean a plan, document, agreement, or arrangement currently or previously maintained or sponsored by the Borrower or by any ERISA Affiliate or to which either the Borrower or ERISA Affiliate currently makes, or previously made, contributions and which (i) provides or is expected to provide retirement benefits to employees or other workers and (ii) the Borrower could reasonably be expected to have any liability (including liability attributable from an ERISA Affiliate). A Defined Benefit Plan shall include any plan that if it were terminated at any time, would result in Borrower or ERISA Affiliate sponsor" being deemed to be a "contributing (as defined in Section 4001(a)(13) of ERISA) of the terminated plan pursuant to ERISA Section 4069. A Defined Benefit Plan does not include a Multiemployer Plan. Document" "Disclosure shall have the meaning set forth in Section 11.2 hereof. Account" "Eligible shall mean a separate and identifiable account from all other funds held by the holding institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or (b) a segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company, is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. NY:1625037.6 FILED: NEW YORK COUNTY CLERK 12/05/2022 05:31 PM INDEX NO. 654609/2022 NYSCEF DOC. NO. 23 RECEIVED NYSCEF: 12/05/2022 Institution" "Eligible shall mean (a) a depository institution or trust company insured by the Federal Deposit Insurance Corporation, (i) the short term unsecured debt obligations or "A-1+" commercial paper of which are rated at least (or its equivalent) from each of the Rating Agencies in the case of accounts in which funds are held for thirty (30) days or less an