Exhibit 10.10

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT dated as of June 10, 2004 (the “Second
Amendment”), is by and among HIGHWOODS REALTY LIMITED PARTNERSHIP, a North
Carolina limited partnership (“Highwoods Realty”), HIGHWOODS PROPERTIES, INC., a
Maryland corporation (“Highwoods Properties”), HIGHWOODS FINANCE, LLC, a
Delaware limited liability company (“Highwoods Finance”), HIGHWOODS SERVICES,
INC., a North Carolina corporation (“Highwoods Services”), and
HIGHWOODS/TENNESSEE HOLDINGS, L.P., a Tennessee limited partnership (“Highwoods
Tennessee”) (Highwoods Realty, Highwoods Properties, Highwoods Finance,
Highwoods Services, and Highwoods Tennessee are hereinafter referred to
individually as a “Borrower” and collectively as the “Borrowers”), the
subsidiaries of the Borrowers identified on the signature pages to the Credit
Agreement referenced below or joined as parties thereto pursuant to Section 7.12
thereof, except to the extent such subsidiaries constitute Non-Guarantor
Subsidiaries in accordance with the terms of the Credit Agreement, as amended
hereby (such Subsidiaries party hereto are hereinafter referred to individually
as a “Guarantor” and collectively as the “Guarantors”), the Lenders (as defined
in the Credit Agreement), BANK OF AMERICA, N.A., as Administrative Agent for the
Lenders (in such capacity, the “Administrative Agent”), BANC OF AMERICA
SECURITIES LLC, as Sole Lead Arranger (in such capacity, the “Sole Lead
Arranger”) and Sole Book Manager (in such capacity, the “Sole Book Manager”),
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Syndication Agent (in such capacity,
the “Syndication Agent”) and BRANCH BANKING & TRUST COMPANY and FLEET NATIONAL
BANK OF AMERICA, as Co-Documentation Agents (in such capacity, the
“Documentation Agent”), and is an amendment to that certain Amended and Restated
Credit Agreement dated as of July 17, 2003 by and among the Borrowers,
Guarantors, Lenders, Administrative Agent, Sole Lead Arranger, Sole Book
Manager, Syndication Agent and Documentation Agent, as amended by that certain
First Amendment to Credit Agreement dated as of March 29, 2004 (as the same may
have been otherwise or further amended, restated, supplemented or otherwise
modified prior to the date hereof, the “Credit Agreement”).

 

WITNESSETH

 

WHEREAS, each of the Borrowers and the Guarantors have requested and the Lenders
and Administrative Agent have agreed to amend the Credit Agreement on the terms
and conditions set forth herein;

 

NOW, THEREFORE, for good and valuable consideration, the receipt of which is
hereby acknowledged by the parties hereto, the parties hereto agree as follows:

 

1. Amendments to Credit Agreement.

 

(a) The definition of “Non-Guarantor Subsidiary” contained in Section 1.1 of the
Credit Agreement is hereby deleted in its entirety and replaced with the
following:

 

““Non-Guarantor Subsidiary” means a collective reference to:

 

(a) those Persons listed on Schedule 1.1(b) attached hereto;

 

(b) any Subsidiary of any Credit Party (i) formed for or converted to (in
accordance with the terms and conditions set forth herein) the specific purpose
of holding title to assets which are collateral for Indebtedness owing by such
Subsidiary and (ii) which is (or, immediately following its release as a Credit
Party hereunder, shall be) expressly prohibited in writing from guaranteeing
Indebtedness of any other Person pursuant to (A) a provision in any document,
instrument or agreement evidencing such Indebtedness of such Subsidiary or (B) a
provision of such Subsidiary’s organizational documents, in each case, which
provision was included in such organizational document or such other document,
instrument or agreement as an express condition to the extension of such
Indebtedness required by the third party creditor providing the subject
financing; provided, that a Subsidiary meeting the above requirements shall only
remain a “Non-Guarantor Subsidiary” for so long as (1) each of the above
requirements are satisfied, (2) such Subsidiary does not guarantee any other
indebtedness and (3) the Indebtedness with respect to which the restrictions
noted in clause (ii) are imposed remains outstanding;

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(c) any Subsidiary of any Credit Party (i) which becomes a Subsidiary of any
Credit Party following the Closing Date, (ii) which is not a Wholly-Owned
Subsidiary of the Credit Party, and (iii) with respect to which the Credit
Party, as applicable, does not have sufficient voting power (and is unable,
after good faith efforts to do so, to cause any necessary non-Credit Party
equity holders to agree) to cause such Subsidiary to execute a Joinder Agreement
pursuant to the terms hereof or, notwithstanding such voting power, the
interests of such non-Credit Party holders have material economic value in the
reasonable judgment of the Borrower that would be impaired by the execution of a
Joinder Agreement; and

 

(d) any other Subsidiary of a Credit Party to the extent (i) such Subsidiary
holds no assets; or (ii) (A) such Subsidiary holds total assets with a value of
less than $500,000 and (B) the sum of the values of the total assets held by the
Subsidiaries already qualifying as Non-Guarantor Subsidiaries pursuant to
subclause (d)(i)(A) above plus the value of the total assets held by the
applicable Subsidiary is less than $5,000,000; and

 

“Non-Guarantor Subsidiary” means any one of such Persons.”

 

(b) The following Section 1.5 is hereby added to the Credit Agreement
immediately following Section 1.4 thereof:

 

“1.5 Exclusion of Special Charge from Covenant Calculations.

 

Notwithstanding anything contained herein to the contrary, the Credit Parties
shall not be required to include as an expense (whether interest or otherwise)
or as any form of Indebtedness certain settlement costs (in an amount not to
exceed $12,500,000) associated with the Credit Parties’ settlement or prepayment
of those certain $100 million Exercisable Put Option Notes issued by the
Borrower in June 1997 in the calculation of any of the financial covenants or
the components thereof contained herein.”

 

(c) Section 7.12 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

 

“(a) If any Person (other than a Non-Guarantor Subsidiary) becomes a Subsidiary
of any Credit Party or upon the formation of any Preferred Stock Subsidiary or
if at any time any Non-Guarantor Subsidiary qualifying as such as a result of
clauses (a), (b) or (c) of the definition thereof could become a Credit Party
without violating the terms of any material contract, agreement or document to
which it is a party, the Principal Borrower shall (i) if such Person is a
Domestic Subsidiary of a Credit Party or a Preferred Stock Subsidiary, cause
such Person to execute a Joinder Agreement in substantially the same form as
Exhibit 7.12 on or before the deadline for delivery of the next Quarterly Stock
Repurchase/Joinder Statement, (ii) provide the Administrative Agent with notice
thereof on a quarterly basis by delivering a Quarterly Stock Repurchase/Joinder
Statement and other documentation as required in Section 7.1(l), and (iii) cause
such Person to deliver such other documentation as the Administrative Agent may
reasonably request in connection with the foregoing, including, without
limitation, certified resolutions and other organizational and authorizing
documents of such Person, favorable opinions of counsel to such Person (which
shall cover, among other things, the legality, validity, binding effect and
enforceability of the documentation referred to above), all in form, content and
scope reasonably satisfactory to the Administrative Agent. If a Non-Guarantor
Subsidiary executes and delivers a Joinder Agreement it shall no longer be
deemed a Non-Guarantor Subsidiary under this Credit Agreement.

 

(b) Notwithstanding any other provisions of this Credit Agreement to the
contrary, to the extent a Guarantor anticipates becoming or intends to become a
Non-Guarantor Subsidiary

 

2

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pursuant to any of clauses (b), (c) or (d) of the definition thereof, the
Principal Borrower may request a release of such Guarantor as a Guarantor
hereunder in accordance with the following:

 

(i) the Principal Borrower shall deliver to the Administrative Agent, not less
than ten (10) days and not more than thirty (30) days prior to the anticipated
or intended conversion of a Guarantor into a Non-Guarantor Subsidiary, a written
request for release of the applicable Guarantor and a pro forma compliance
certificate of the chief financial officer of the Principal Borrower in form and
substance acceptable to the Administrative Agent, (A) demonstrating that upon
such release the Credit Parties will on a pro forma basis continue to comply
with (1) the financial covenants contained in Section 7.11 and (2) the financial
covenants contained in each of the indentures or other agreements relating to
any publicly issued debt securities of any Consolidated Party, in each case by a
reasonably detailed calculation thereof (which calculation shall be in form
reasonably satisfactory to the Agent and which shall include, among other
things, an explanation of the methodology used in such calculation and a
breakdown of the components of such calculation), (B) stating that the Credit
Parties will be in compliance with each of the covenants set forth in Sections 7
and 8 of the Credit Agreement at all times following such release, (C) stating
that, following such release, no Default or Event of Default will exist under
the Credit Agreement or any of the other Credit Documents, or if any Default or
Event of Default will exist, specifying the nature and extent thereof and what
action the Credit Parties propose to take with respect thereto, and (D)
attaching, pursuant to Section 6.13 of the Credit Agreement, an updated version
of Schedules 6.13 to the Credit Agreement;

 

(ii) the Administrative Agent shall have reviewed and approved (in writing) the
request for release and pro forma compliance certificate delivered pursuant to
subclause (i) above; provided, that the failure of the Administrative Agent to
respond to such a request within ten (10) days of its receipt thereof shall
constitute the Administrative Agent’s approval thereof; provided, that any
approval of the Administrative Agent provided pursuant to this subclause (ii)
shall lapse and be null and void thirty (30) days following the granting thereof
if the applicable Guarantor has not, on or prior to the completion of such
period, met the criteria for qualification as a Non-Guarantor Subsidiary (as
evidenced by the delivery by the Principal Borrower of a notice and
certification in accordance with subclause (iii) below); and

 

(iii) the Principal Borrower shall, concurrently with or promptly following the
applicable Guarantor’s satisfaction of the criteria for qualification as a
Non-Guarantor Subsidiary deliver to the Administrative Agent a notice and
certification of such qualification.

 

Notwithstanding any language to the contrary above, so long as the chief
financial officer of the Principal Borrower has certified in a compliance
certificate (and the Administrative Agent has no evidence or information which
brings into reasonable doubt the veracity of such certifications) that: (A) upon
such release the Credit Parties (1) will on a pro forma basis continue to comply
with the financial covenants contained in Section 7.11, and the financial
covenants contained in each of the indentures or other agreements relating to
any publicly issued debt securities of any Consolidated Party, and (2) will be
in compliance with each of the covenants set forth in Sections 7 and 8 of the
Credit Agreement at all times following such release, (B) following such
release, no Default or Event of Default will exist under the Credit Agreement or
any of the other Credit Documents, or if any Default or Event of Default will
exist, the nature and extent thereof and what action the Credit Parties propose
to take with respect thereto will be specified, and (C) attached pursuant to
Section 6.13 of the Credit Agreement, is an updated version of Schedules 6.13 to
the Credit Agreement, the request for release shall be approved and issued by
the Administrative Agent within the 10-day time period specified in subsection
(b)(ii).

 

Upon satisfaction of each of the above-noted conditions, a Guarantor shall be
deemed released from its obligations hereunder and under each of the Credit
Documents.”

 

3

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(d) The text of Section 7.14 of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

 

“Each Credit Party shall, to the extent it exercises sufficient control over the
activities of the applicable Non-Guarantor Subsidiary(ies), cause all “Excess
Cash Flow” (as defined below) of each Non-Guarantor Subsidiary to be transferred
to a Credit Party as promptly as possible but at least once a month. For the
purposes of this Section 7.14, “Excess Cash Flow” means an amount equal to all
net operating income of a Non-Guarantor Subsidiary minus all debt service
payments of such Non-Guarantor Subsidiary minus all amounts required to fund
reserves of such Non-Guarantor Subsidiary.”

 

(e) The text of Section 8.15 of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

 

“Notwithstanding any other provision of this Credit Agreement, the Credit
Parties shall prohibit any Non-Guarantor Subsidiary from (a) forming or
acquiring any new Subsidiary; (b) incurring any Indebtedness that is recourse to
any Credit Party, (c) purchasing or acquiring any new Real Property or other
assets other than those used in connection with currently owned Real Property or
(d) incurring any change in its ownership which has the effect of reducing the
percentage thereof owned by the Credit Parties.”

 

(f) The following Section 10.11 is hereby added to the Credit Agreement
following Section 10.10 thereof:

 

“10.11 Credit Document Guaranty Matters.

 

The Lenders irrevocably authorize the Administrative Agent to release any
Guarantor from its obligations hereunder and under each of the other Credit
Documents to the extent such release is requested by such Guarantor and the
Principal Borrower in accordance the provisions set forth in Section 7.12(b)
hereof and upon the satisfaction of the conditions set forth in such Section
7.12(b) (as reasonably determined by the Administrative Agent). Upon request by
the Administrative Agent at any time, the Lenders will confirm in writing the
Administrative Agent’s authority to grant releases and terminations pursuant to
this Section 10.11. Further, the Administrative Agent is hereby authorized by
the Lenders, upon the request of any Guarantor released pursuant to Section
7.12(b) hereof, to execute and deliver to such Guarantor a document (in form and
substance acceptable to the Administrative Agent) evidencing such release.”

 

(g) The text of Schedule 1.1(b) attached to the Credit Agreement is hereby
deleted in its entirety and replaced with the text set forth on Schedule 1.1(b)
attached hereto.

 

(h) Each of Highwoods Orlando, LLC (f/k/a MG-HIW, LLC), a Delaware limited
liability company and wholly owned subsidiary of the Operating Partnership,
HIW-KC Orlando, LLC ( f/k/a MG-HIW Orlando, LLC, a Delaware limited liability
company and a wholly owned subsidiary of Highwoods Orlando, LLC, and Highwoods
KC Glenridge, LLC, a Delware limited liability company and wholly owned
subsidiary of the Operating Partnership, is hereby released from its obligations
under the Credit Agreement and each of the other Credit Documents.

 

(i) Notwithstanding any language to the contrary in this Second Amendment,
nothing herein shall prohibit an Asset Disposition of a Non-Guarantor Subsidiary
under the terms and conditions of Section 8.17 of the Credit Agreement. Upon any
Asset Disposition under the terms and conditions of Section 8.17, a release
shall be granted. The Lenders irrevocably authorize the Administrative Agent to
grant such release upon the satisfaction of the terms and conditions of an Asset
Disposition under Section 8.17.

 

2. Conditions Precedent. The effectiveness of this Second Amendment is subject
to receipt by the Administrative Agent of each of the following, each in form
and substance satisfactory to the Administrative Agent:

 

(a) a counterpart of this Second Amendment duly executed by each of: the
Borrowers, Guarantors and Supermajority Lenders;

 

4

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(b) payment by Borrowers of (i) any fees required by the Administrative Agent or
Sole Lead Arranger in connection with this Second Amendment, (ii) a fee to each
Lender executing and delivering its signature page to this Second Amendment to
the Administrative Agent on or before                     , 2004, such fee for a
particular Lender to be in an amount equal to 0.10% times the maximum amount of
such Lender’s Revolving Commitment, (iii) all other outstanding fees and
expenses of the Administrative Agent and the Administrative Agent’s counsel
incurred in connection with the preparation of this Second Amendment, (iv) all
other fees and expenses relating to the preparation, execution and delivery of
this Second Amendment or otherwise related to the Credit Agreement or the Credit
Documents which are due and payable as of the date hereof, including, without
limitation, payment to the Administrative Agent of attorneys’ fees, consultants’
fees, travel expenses, all fees and expenses associated with prior transactions
entered into or contemplated by and between Borrowers and the Administrative
Agent and (v) all other fees and expenses due and then-owing from the Borrowers
to the Administrative Agent and Lenders pursuant to the terms hereof, the terms
of the Credit Agreement and the terms of the other Credit Documents; and

 

(c) such other documents, instruments and agreements as the Administrative Agent
may reasonably request.

 

3. Representations. Each of the Borrowers and each of the Guarantors
collectively represent and warrant to the Administrative Agent and the Lenders
that:

 

(a) Authorization. Each of the Borrowers and each of the Guarantors,
respectively, has the right and power and has obtained all authorizations
necessary to execute and deliver this Second Amendment and to perform its
respective obligations hereunder and under the Credit Agreement, as amended by
this Second Amendment, in accordance with their respective terms. This Second
Amendment has been duly executed and delivered by a duly authorized officers of
each of the Borrowers and each Guarantor, respectively, and each of this Second
Amendment and the Credit Agreement, as amended by this Second Amendment, is a
legal, valid and binding obligation of each of the Borrowers and each Guarantor
(each as applicable), enforceable against each of the Borrowers and each
Guarantor (each as applicable) in accordance with its respective terms, except
as the same may be limited by bankruptcy, insolvency, and other similar laws
affecting the rights of creditors generally and by equitable principles
generally.

 

(b) Compliance with Laws, etc. The execution and delivery by each of the
Borrowers and each of the Guarantors of this Second Amendment and the
performance by each of the Borrowers and/or the Guarantors of this Second
Amendment and the Credit Agreement, as amended by this Second Amendment, in
accordance with their respective terms, does not and will not, by the passage of
time, the giving of notice or otherwise: (i) require any approval (other than
those already obtained) by any Governmental Authority or violate any law
(including any Environmental Law) which is applicable to a Borrower, any
Guarantors, any Consolidated Party, the Credit Documents or the transactions
contemplated herein or therein; (ii) conflict with, result in a breach of or
constitute a default under the organizational documents of any Borrower, any of
the Guarantors or any other Consolidated Party, or any indenture, agreement/or
other instrument to which any Borrower, any of the Guarantors or any other
Consolidated Party is a party or by which it or any of its respective properties
may be bound; 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
Borrower, any Guarantor or any other Consolidated Party other than in favor of
the Administrative Agent for the benefit of the Lenders; and

 

(c) No Default. No Default or Event of Default has occurred and is continuing as
of the date hereof nor will exist immediately after giving effect to this Second
Amendment.

 

4. Reaffirmation of Representations. Each of the Borrowers and each of the
Guarantors hereby repeat and reaffirm all representations and warranties made by
such party to the Administrative Agent and the Lenders in the Credit Agreement
and the other Credit Documents to which it is a party on and as of the date
hereof (other than any representation or warranty expressly relating to an
earlier date) with the same force and effect as if such representations and
warranties were set forth in this Second Amendment in full.

 

5

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5. Reaffirmation of Guaranty. Each of the Guarantors hereby reaffirms its
continuing obligations to the Administrative Agent and the Lenders under the
Credit Agreement and agrees that the transactions contemplated by this Second
Amendment shall not in any way affect the validity and enforceability of their
respective guaranty obligations thereunder or reduce, impair or discharge the
obligations of such Guarantors thereunder.

 

6. Severability. If any provision of any of this Second Amendment or of the
Credit Agreement, as amended hereby, is determined to be illegal, invalid or
unenforceable, such provision shall be fully severable and the remaining
provisions shall remain in full force and effect and shall be construed without
giving effect to the illegal, invalid or unenforceable provisions.

 

7. Certain References. Each reference to the Credit Agreement in any of the
Credit Documents shall be deemed to be a reference to the Credit Agreement as
amended by this Second Amendment and this Second Amendment shall be deemed a
Credit Document for purposes of the application of provisions of the Credit
Agreement generally applicable thereto (including, without limitation, any
arbitration provisions or waiver provisions).

 

8. Expenses. The Borrowers shall reimburse the Administrative Agent upon demand
for all reasonable costs and expenses (including reasonable attorneys’ fees)
incurred by the Administrative Agent in connection with the preparation,
negotiation and execution of this Second Amendment and the other agreements and
documents executed and delivered in connection herewith.

 

9. Benefits. This Second Amendment shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.

 

10. Default. The failure of any of the Borrowers or any of the Guarantors to
perform any of their respective obligations under this Second Amendment or the
material falsity of any representation or warranty made herein shall, at the
option of the Administrative Agent and/or Lenders (as determined in accordance
with the Credit Agreement) after expiration of any applicable cure period,
constitute an Event of Default under the Credit Documents.

 

11. No Novation. The parties hereto intend this Second Amendment to evidence the
amendments to the terms of the existing indebtedness of the Borrowers and
Guarantors to the Lenders as specifically set forth herein and do not intend for
such amendments to constitute a novation in any manner whatsoever.

 

12. GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS
EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

13. No Implied Agreements. Except as expressly herein amended, the terms and
conditions of the Credit Agreement and the other Credit Documents remain in full
force and effect. The amendments contained herein shall be deemed to have
prospective application only, unless otherwise specifically stated herein.

 

14. Counterparts. This Second Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall constitute one and the same instrument. It shall not be
necessary in making proof of this Second Amendment to produce or account for
more than one such counterpart for each of the parties hereto. Delivery by
facsimile by any of the parties hereto of an executed counterpart of this Second
Amendment shall be as effective as an original executed counterpart hereof and
shall be deemed a representation that an original executed counterpart hereof
will be delivered. Each counterpart hereof shall be deemed to be an original and
shall be binding upon all parties, their successors and assigns.

 

15. Binding Effect. This Second Amendment shall become effective as of the date
hereof at such time when all of the conditions set forth in Section 2 hereof
have been satisfied or waived by the Lenders and it shall

 

6

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have been executed by the Borrowers, the Guarantors and the Administrative
Agent, and the Administrative Agent shall have received copies hereof (telefaxed
or otherwise) which, when taken together, bear the signatures of the
Supermajority Lenders, and thereafter this Credit Agreement shall be binding
upon and inure to the benefit of the Borrowers, the Guarantors, the
Administrative Agent and each Lender and their respective successors and
assigns.

 

16. Release. Each Credit Party hereby represents and warrants that it has no
claims, counterclaims, offsets, or defenses to the Credit Agreement or any of
the Credit Documents, or to the performance of their respective obligations
thereunder and, in consideration of the Lenders’ and Administrative Agent’s
willingness to grant the amendment referenced herein, hereby releases the
Administrative Agent, the Lenders, the Sole Lead Arranger, the Sole Book
Manager, the Syndication Agent and the Documentation Agent and each of their
respective officers, employees, representatives, agents, counsel and directors
from any and all actions, causes of action, claims, demands, damages and
liabilities of whatever kind or nature, in law or in equity, now known or
unknown, suspected or unsuspected to the extent that any of the foregoing arises
from any action or failure to act on or prior to the date hereof.

 

17. Definitions. All capitalized terms not otherwise defined herein are used
herein with the respective definitions given them in the Credit Agreement. The
interpretive provisions set forth in Sections 1.2 and 1.3 of the Credit
Agreement shall apply to this Second Amendment as though set forth herein.

 

[Signature Pages to Follow]

 

7

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
Second Amendment to be duly executed and delivered as of the date written above.

 

BORROWERS:   HIGHWOODS REALTY LIMITED PARTNERSHIP    

By:

 

Highwoods Properties, Inc.

    HIGHWOODS PROPERTIES, INC.     HIGHWOODS SERVICES, INC.     HIGHWOODS
FINANCE, LLC    

By:

 

Highwoods Properties, Inc.

    HIGHWOODS/TENNESSEE HOLDINGS, L.P.    

By:

 

Highwoods/Tennessee Properties, Inc.

   

By:

 

/s/ Edward J. Fritsch

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

   

Name:

 

Edward J. Fritsch

   

Title:

 

President

 

(Signatures continued on next page)

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GUARANTORS:   HIGHWOODS/FLORIDA GP CORP.     HIGHWOODS/TENNESSEE PROPERTIES,
INC.     HIGHWOODS/FLORIDA HOLDINGS, L.P.    

By:

 

Highwoods/Florida GP Corp.

    PINELLAS NORTHSIDE PARTNERS, LTD.    

By:

 

Highwoods/Florida Holdings, L.P.

        By:  

Highwoods/Florida GP Corp.

    RED RUN ASSOCIATES LLC    

By:

 

Highwoods Realty Limited Partnership

       

By:

 

Highwoods Properties, Inc.

    WINSTON-SALEM INDUSTRIAL, LLC    

By:

 

Highwoods Realty Limited Partnership

       

By:

 

Highwoods Properties, Inc.

    TAMPA TECH PRESERVE, LLC    

By:

 

581 Highwoods, L.P

       

By:

 

Highwoods/Florida Holdings, L.P.

           

By:

 

Highwoods/Florida GP Corp.

    MARLEY CONTINENTAL HOMES OF KANSAS, L.L.C.    

By:

 

Highwoods Properties, Inc.

    SOUTH PARK LAND, LLC        

By:

 

Challenger, Inc.

    SOUTHWIND LAND HOLDINGS, LLC    

By:

 

AP Southeast Portfolio Partners, L.P.

       

By:

 

Highwoods Realty GP Corp.

    AP SOUTHEAST PORTFOLIO PARTNERS, L.P.        

By:

 

Highwoods Realty GP Corp.

    HIGHWOODS REALTY GP CORP.     PINELLAS BAY VISTA PARTNERS, LTD.    

By:

 

Highwoods/Florida Holdings, L.P.

       

By:

 

Highwoods/Florida GP Corp.

 

(Signatures continued on next page)

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DOWNTOWN CLEARWATER TOWER, LTD.

By:

 

Highwoods/Florida Holdings, L.P.

   

By:

 

Highwoods/Florida GP Corp.

SISBROS, LTD.

By:

 

Highwoods/Florida Holdings, L.P.

   

By:

 

Highwoods/Florida GP Corp.

SHOCKOE PLAZA INVESTORS, L.C.

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

RC ONE LLC

By:

 

Highwoods Services, Inc.

HPI TITLE AGENCY, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

ALAMEDA TOWERS DEVELOPMENT COMPANY CHALLENGER, INC. GUARDIAN MANAGEMENT, INC.
HIGHWOODS/CYPRESS COMMONS LLC

By:

 

AP Southeast Portfolio Partners, L.P.

   

By:

 

Highwoods Realty GP Corp.

HIGHWOODS/INTERLACHEN HOLDINGS, L.P.

By:

 

Highwoods/Florida Holdings, L.P.

   

By:

 

Highwoods/Florida GP Corp.

4600 COX ROAD LLC

By:

 

Highwoods/Florida Holdings, L.P.

   

By:

 

Highwoods/Florida GP Corp.

PLAZA GIFT CARD, LLC

By:

 

Highwoods Services, Inc.

HIGHWOODS CONSTRUCTION SERVICES, LLC

By:

 

Highwoods Services, Inc.

 

(Signatures continued on next page)

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HIGHWOODS DLF, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

HIGHWOODS DLF II, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

PAPEC RICHMOND II, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

PAPEC WESTON I, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

PAPEC WESTON II, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

PAPEC WESTON III, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

HARBORVIEW PLAZA, LLC

By:

 

Highwoods/Florida Holdings, L.P.

   

By:

 

Highwoods/Florida GP Corp.

SPI BROOKFIELD I, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

SPI BROOKFIELD II, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

SPI BUSINESS HOLDINGS, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

SPI CENTURY PLAZA III, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

SPI JEFFERSON VILLAGE, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

SPI TRADEPORT OFFICE III, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

 

(Signatures continued on next page)

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

SPI RALEIGH CORPORATE CENTER, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

HIGHWOODS COLONNADE, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

SPI TRADEPORT PLACE V, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

HIWTP, LLC    

By:

 

Highwoods Services, Inc.

MG-HIW PEACHTREE CORNERS III, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

GROVE PARK SQUARE, LLC    

By:

 

HIGHWOODS SERVICES, INC.

HIGHWOODS WELLNESS CENTER, LLC    

By:

 

HIGHWOODS SERVICES, INC.

HIGHWOODS 3322, LLC    

By

 

HIGHWOODS/FLORIDA HOLDINGS, L.P.

       

By:    HIGHWOODS/FLORIDA GP CORP.

NICHOLS PLAZA WEST, INC. OZARK MOUNTAIN VILLAGE, INC. 4551 COX ROAD LLC    

By:

 

HIGHWOODS REALTY LIMITED PARTNERSHIP

       

By:    HIGHWOODS PROPERTIES, INC.

MG-HIW METROWEST I, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

MG-HIW METROWEST II, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

5525 GRAY STREET, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

HIGHWOODS SITUS II, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

BAY CENTER I, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

HIGHWOODS KC GLENRIDGE LAND, LLC

By:

 

Highwoods Realty Limited Partnership

   

By:

 

Highwoods Properties, Inc.

581 HIGHWOODS, L.P.

By:

 

Highwoods/Florida Holdings, L.P.

   

By:

 

Highwoods/Florida GP Corp.

By:

 

/s/ Edward J. Fritsch

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

Name:

 

Edward J. Fritsch

Title:

 

President

 

[signature pages continued]

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

LENDERS/AGENTS:   BANK OF AMERICA, N.A.,    

individually in its capacity as a Lender

   

and in its capacity as Administrative Agent

   

By:

 

/s/ Will T. Bowers

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

   

Name:

 

Will T. Bowers

   

Title:

 

Principal

    BANC OF AMERICA SECURITIES LLC,    

individually in its capacity as Sole Lead Arranger and Sole Book Manager

   

By:

 

/s/ Wesley G. Carter

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

   

Name:

 

Wesley G. Carter

   

Title:

 

Vice President

 

[signature pages continued]

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

WELLS FARGO BANK, NATIONAL ASSOCIATION

individually in its capacity as a Lender

and in its capacity as Syndication Agent

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

BRANCH BANKING AND TRUST COMPANY

individually in its capacity as a Lender

and as a Co-Documentation Agent

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

FLEET NATIONAL BANK

individually in its capacity as a Lender

and as a Co-Documentation Agent

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

WACHOVIA BANK, NATIONAL ASSOCIATION

individually in its capacity as a Lender

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

PNC BANK, NATIONAL ASSOCIATION

individually in its capacity as a Lender

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

AMSOUTH BANK

individually in its capacity as a Lender

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

SOUTHTRUST BANK

individually in its capacity as a Lender

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

RBC CENTURA BANK

individually in its capacity as a Lender

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[signature pages continued]

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

UNION PLANTERS BANK

individually in its capacity as a Lender

By:

 

/s/ Authorized Signatory

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

Name:

 

 

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

Title:

 

 

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

 

[end of signature pages]

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

Schedule 1.1(b)

 

Non-Guarantor Subsidiaries

 

HRLP, LLC, a Delaware limited liability company, is a wholly owned subsidiary of
the Operating Partnership.

 

HIW-TN, LLC, a Delaware limited liability company, is a wholly owned subsidiary
of Highwoods/Tennessee Holdings, L.P.

 

HIW-SE, LLC, a Delaware limited liability company, is a wholly owned subsidiary
of AP Southeast Portfolio Partners, L.P.

 

Highwoods/Florida, LLC, a Delaware limited liability company, is a wholly owned
subsidiary of Highwoods/Florida Holdings, L.P.

 

Highwoods Non-Orlando, LLC, a Delaware limited liability company, is a wholly
owned subsidiary of the Operating Partnership.

 

MG-HIW Raleigh, LLC, a Delaware limited liability company, is a wholly owned
subsidiary of Highwoods Non-Orlando, LLC.

 

MG-HIW Tampa, LLC, a Delaware limited liability company, is a wholly owned
subsidiary of Highwoods Non-Orlando, LLC.

 

MG-HIW Atlanta, LLC, a Delaware limited liability company, is a wholly owned
subsidiary of Highwoods Non-Orlando, LLC.

 

Highwoods Orlando, LLC (f/k/a MG-HIW, LLC), a Delaware limited liability
company, is a wholly owned subsidiary of the Operating Partnership.

 

HIW-KC Orlando, LLC (f/k/a MG-HIW Orlando, LLC), a Delaware limited liability
company, is a wholly owned subsidiary of Highwoods Orlando, LLC.

 

Highwoods KC Glenridge, LLC, a Delaware limited liability company, is a wholly
owned subsidiary of the Operating Partnership.