Exhibit 10.5

 

SECOND AMENDMENT TO LOAN AGREEMENT

 

This Second Amendment to Loan Agreement (the “Amendment”), dated as of September
30, 2004, is made by and among FIRST STATES INVESTORS DB I, LLC (and each
Property-Owning Borrower that has joined the Loan Agreement from time to time as
listed on the signature pages hereto, collectively, “Borrower”), DEUTSCHE BANK
AG, CAYMAN ISLANDS BRANCH, as agent (“Agent”), and LA SALLE BANK NATIONAL
ASSOCIATION, a national banking association, as collateral agent (the
“Collateral Agent”).

 

R E C I T A L S:

 

The Borrower, the Agent and the Collateral Agent are party to a Loan Agreement,
dated as of July 18, 2003, as amended by the First Amendment to Loan Agreement,
dated as of August 9, 2004 (as it may hereafter be amended, supplemented or
otherwise modified, the “Loan Agreement”), pursuant to which the Agent agreed,
subject to the terms and conditions set forth in the Loan Agreement, to provide
a series of loan advances (each, an “Advance” and collectively, the “Loan”) as
provided in the Loan Agreement. Terms used but not defined herein shall have the
respective meanings ascribed to such terms in the Loan Agreement, as amended
hereby.

 

The parties wish to increase the amount available to be borrowed under the Loan
Agreement on a temporary basis as provided herein.

 

NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows, effective as of the date
hereof.

 

Section 1. Increase in Loan Amount

 

1.1 Under the Recitals to the Loan Agreement, the term “Loan Amount”, which is
defined therein to equal $300,000,000, is hereby modified and increased to equal
$400,000,000 effective on the date hereof and continuing for a period of six
months. Commencing on the six month anniversary of the date of this Amendment
(i.e. March 30, 2005) and thereafter, the term “Loan Amount” shall be
automatically (and without the requirement of any action being taken by any of
the parties hereto) modified and reduced to once again equal $300,000,000. At
the time the Loan Amount is reduced to equal $300,000,000 pursuant to this
paragraph, Borrower shall be obligated to repay any amounts outstanding in
excess of $300,000,000.

 

1.2 On the date hereof, Borrower shall execute an Amended and Restated
Promissory Note in the amount of $400,000,000 to reflect such increase to the
Loan Amount.

 

Section 2. In connection with the Advance being made on the date hereof to
Borrower to finance the acquisition of 252 mortgaged properties from Bank of
America, N.A. (the “BOA Acquisition”), Borrower shall owe a Facility
Modification Fee in the amount of 0.50% of $100,000,000 (the “Facility
Modification Fee”), which shall be deemed earned on the date hereof and payable
as provided below. The Facility Modification Fee shall be payable upon the
earlier to occur of (i) the closing of a permanent financing on the BOA
Acquisition by Agent or an affiliate of the Agent or (ii) the date six months
from today (i.e. March 30, 2005). In the

--------------------------------------------------------------------------------

event that the Facility Modification Fee shall be payable as a result of the
closing of the permanent financing of the BOA Acquisition by Agent, (i) 0.25% of
$100,000,000 shall be deemed waived by the Agent and (ii) Agent shall adjust the
spread on the permanent financing of the BOA Acquisition over the term of that
financing by 0.25% of $100,000,000, to be paid as an additional spread over the
term of that loan. Failure to pay the Facility Modification Fee shall be an
Event of Default under the Loan Agreement.

 

Section 3. It is understood that for the purpose of the Advance made on the date
hereof and only for this Advance, the definition of “Advance Percentage” in the
Loan Agreement shall be amended to equal 90%. The Advance Percentage shall be
applied assuming the permanent commercial mortgage-backed securities financing
to be in the amount of $350,000,000.

 

Section 4. Effect Upon Loan Documents.

 

4.1 Except as specifically set forth herein, the Loan Documents shall remain in
full force and effect and are hereby ratified and confirmed. All references to
“Loan Agreement” in the Loan Documents shall mean and refer to the Loan
Agreement as modified and amended hereby.

 

4.2 The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of Agent under the Loan
Documents, or any other document, instrument or agreement executed and/or
delivered in connection therewith.

 

Section 5. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED, INTERPRETED AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT
OF LAWS PRINCIPLES.

 

Section 6. Counterparts. This Amendment may be executed in any number of
counterparts, and all such counterparts shall together constitute the same
agreement.

 

[REST OF PAGE INTENTIONALLY LEFT BLANK]

 

2

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the day and year first above written.

 

AGENT AND INITIAL LENDER:

DEUTSCHE BANK AG, CAYMAN ISLANDS

BRANCH, a Cayman Islands Branch of a

Foreign Bank

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

    BORROWERS:

FIRST STATES INVESTORS DB I, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2550A, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

--------------------------------------------------------------------------------

FIRST STATES INVESTORS 4100D, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2100, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2101, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2102, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2103, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

 

4

--------------------------------------------------------------------------------

FIRST STATES INVESTORS 2104, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2105, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2106, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2107, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 2108, LLC, a Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

 

5

--------------------------------------------------------------------------------

FIRST STATES INVESTORS 4026, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4029, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4044, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4048, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4055, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

 

6

--------------------------------------------------------------------------------

FIRST STATES INVESTORS 4062, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4067, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4076, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4081, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4085, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

 

7

--------------------------------------------------------------------------------

FIRST STATES INVESTORS 4082, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4063, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4065, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4054, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 4042, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

 

8

--------------------------------------------------------------------------------

FIRST STATES INVESTORS 4010, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

FIRST STATES INVESTORS 5200, LLC, a

Delaware limited liability company

By:

 

 

--------------------------------------------------------------------------------

Name:

 

Sonya A. Huffman

Title:

 

Vice President

COLLATERAL AGENT: LA SALLE BANK NATIONAL ASSOCIATION, a national banking
association (as Collateral Agent for the Lenders only)

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

 

9