EXHIBIT 10.1



Execution Version



AMENDED AND RESTATED CREDIT AGREEMENT



Dated as of July 17, 2003



among



HIGHWOODS PROPERTIES, INC.,

HIGHWOODS SERVICES, INC.,

HIGHWOODS REALTY
LIMITED PARTNERSHIP,

HIGHWOODS/TENNESSEE HOLDINGS, L.P.

AND

HIGHWOODS FINANCE, LLC



as Borrowers,



AND CERTAIN SUBSIDIARIES OF THE BORROWERS

FROM
TIME TO TIME PARTY HERETO,

as Guarantors,



THE SEVERAL LENDERS

FROM TIME TO TIME PARTY
HERETO



BANK OF AMERICA, N.A.,

as Administrative Agent,



BANC OF AMERICA SECURITIES LLC

as Sole Lead
Arranger and

as Sole Book Manager



WELLS FARGO BANK, NATIONAL ASSOCIATION,

as
Syndication Agent



BRANCH BANKING & TRUST COMPANY

and

FLEET NATIONAL BANK

as Co-Documentation Agents



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TABLE OF CONTENTS





|                                                         |  |                                                                  |  | Page
|-------------------------------------------------------- |  | ---------------------------------------------------------------- |  | ----
|SECTION 1 DEFINITIONS                                    |  | 1                                                               
|1.1                                                      |  | Definitions                                                      |  | 1   
|1.2                                                      |  | Computation of Time Periods                                      |  | 24  
|1.3                                                      |  | Accounting Terms                                                 |  | 24  
|SECTION 2 CREDIT FACILITIES                              |  | 25                                                              
|2.1                                                      |  | Revolving Loans                                                  |  | 25  
|2.2                                                      |  | Reserved                                                         |  | 26  
|2.3                                                      |  | Letter of Credit Subfacility                                     |  | 26  
|2.4                                                      |  | Swingline Loan Subfacility                                       |  | 30  
|2.5                                                      |  | Reserved                                                         |  | 32  
|2.6                                                      |  | Joint and Several Liability of the Borrowers                     |  | 32  
|2.7                                                      |  | Appointment of Principal Borrower as Agent for Borrowers         |  | 33  
|SECTION 3 OTHER PROVISIONS RELATING TO CREDIT FACILITIES |  | 33                                                              
|3.1                                                      |  | Default Rate                                                     |  | 33  
|3.2                                                      |  | Extension and Conversion                                         |  | 34  
|3.3                                                      |  | Prepayments                                                      |  | 34  
|3.4                                                      |  | Termination, Reduction or Increase of Revolving Committed Amount |  | 35  
|3.5                                                      |  | Fees                                                             |  | 35  
|3.6                                                      |  | Capital Adequacy                                                 |  | 36  
|3.7                                                      |  | Limitation on Eurodollar Loans                                   |  | 37  
|3.8                                                      |  | Illegality                                                       |  | 37  
|3.9                                                      |  | Requirements of Law                                              |  | 37  
|3.10                                                     |  | Treatment of Affected Loans                                      |  | 38  
|3.11                                                     |  | Taxes                                                            |  | 39  
|3.12                                                     |  | Compensation                                                     |  | 40  
|3.13                                                     |  | Pro Rata Treatment                                               |  | 41  
|3.14                                                     |  | Sharing of Payments                                              |  | 41  
|3.15                                                     |  | Payments, Computations, Etc                                      |  | 42  
|3.16                                                     |  | Evidence of Debt                                                 |  | 43  
|3.17                                                     |  | Survival                                                         |  | 43  
|SECTION 4 GUARANTY                                       |  | 43                                                              
|4.1                                                      |  | The Guarantee                                                    |  | 43  
|4.2                                                      |  | Obligations Unconditional                                        |  | 44  
|4.3                                                      |  | Reinstatement                                                    |  | 45  
|4.4                                                      |  | Certain Additional Waivers                                       |  | 45  
|4.5                                                      |  | Remedies                                                         |  | 45  
|4.6                                                      |  | Rights of Contribution                                           |  | 45  
|4.7                                                      |  | Continuing Guarantee                                             |  | 46  
|SECTION 5 CONDITIONS                                     |  | 46                                                              
|5.1                                                      |  | Closing Conditions                                               |  | 46  
|5.2                                                      |  | Conditions to all Extensions of Credit                           |  | 48  
|SECTION 6 REPRESENTATIONS AND WARRANTIES                 |  | 49                                                              
|6.1                                                      |  | Financial Condition                                              |  | 49  
|6.2                                                      |  | No Change; Dividends                                             |  | 49  
|6.3                                                      |  | Organization; Existence; Compliance with Law                     |  | 49  
|6.4                                                      |  | Power; Authorization; Enforceable Obligations                    |  | 49  
|6.5                                                      |  | No Conflicts                                                     |  | 50  
|6.6                                                      |  | No Default                                                       |  | 50  
|6.7                                                      |  | Ownership                                                        |  | 50  
|6.8                                                      |  | Indebtedness                                                     |  | 50  
|6.9                                                      |  | Litigation                                                       |  | 50  
|6.10                                                     |  | Taxes                                                            |  | 50  



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|6.11                            |  | Compliance with Laws                                                          |  | 50
|------------------------------- |  | ----------------------------------------------------------------------------- |  | --
|6.12                            |  | ERISA                                                                         |  | 51
|6.13                            |  | Subsidiaries                                                                  |  | 51
|6.14                            |  | Governmental Regulations, Etc                                                 |  | 51
|6.15                            |  | Purpose of Loans and Letters of Credit                                        |  | 52
|6.16                            |  | Environmental Matters                                                         |  | 52
|6.17                            |  | Intellectual Property                                                         |  | 52
|6.18                            |  | Solvency                                                                      |  | 52
|6.19                            |  | Investments                                                                   |  | 53
|6.20                            |  | Disclosure                                                                    |  | 53
|6.21                            |  | No Burdensome Restrictions                                                    |  | 53
|6.22                            |  | Labor Matters                                                                 |  | 53
|6.23                            |  | Tax Shelter Regulations                                                       |  | 53
|6.24                            |  | Principal Offices                                                             |  | 53
|SECTION 7 AFFIRMATIVE COVENANTS |  | 53                                                                           
|7.1                             |  | Information Covenants                                                         |  | 53
|7.2                             |  | Preservation of Existence and Franchises                                      |  | 57
|7.3                             |  | Books and Records                                                             |  | 57
|7.4                             |  | Compliance with Law                                                           |  | 57
|7.5                             |  | Payment of Taxes and Other Indebtedness                                       |  | 57
|7.6                             |  | Insurance                                                                     |  | 57
|7.7                             |  | Maintenance of Property                                                       |  | 57
|7.8                             |  | Performance of Obligations                                                    |  | 58
|7.9                             |  | Use of Proceeds                                                               |  | 58
|7.10                            |  | Audits/Inspections                                                            |  | 58
|7.11                            |  | Financial Covenants                                                           |  | 58
|7.12                            |  | Additional Credit Parties                                                     |  | 60
|7.13                            |  | Management                                                                    |  | 60
|7.14                            |  | Upstream of Excess Cash Flow                                                  |  | 61
|7.15                            |  | Reporting of Guaranty Obligations                                             |  | 61
|7.16                            |  | Environmental Indemnity                                                       |  | 61
|SECTION 8 NEGATIVE COVENANTS    |  | 61                                                                           
|8.1                             |  | Indebtedness                                                                  |  | 61
|8.2                             |  | Liens                                                                         |  | 62
|8.3                             |  | Nature of Business                                                            |  | 62
|8.4                             |  | Consolidation, Merger, Dissolution, etc                                       |  | 62
|8.5                             |  | Intentionally Omitted                                                         |  | 62
|8.6                             |  | Investments                                                                   |  | 62
|8.7                             |  | Intentionally Omitted                                                         |  | 62
|8.8                             |  | Prepayments of Indebtedness, etc                                              |  | 62
|8.9                             |  | Transactions with Affiliates                                                  |  | 63
|8.10                            |  | Fiscal Year; Organizational Documents                                         |  | 63
|8.11                            |  | Limitation on Restricted Actions                                              |  | 63
|8.12                            |  | Ownership of Subsidiaries                                                     |  | 63
|8.13                            |  | Sale Leasebacks                                                               |  | 63
|8.14                            |  | No Further Negative Pledges                                                   |  | 64
|8.15                            |  | Non-Guarantor Subsidiaries                                                    |  | 64
|8.16                            |  | Intentionally Omitted                                                         |  | 64
|8.17                            |  | Asset Dispositions                                                            |  | 64
|SECTION 9 EVENTS OF DEFAULT     |  | 64                                                                           
|9.1                             |  | Events of Default                                                             |  | 64
|9.2                             |  | Acceleration; Remedies                                                        |  | 66
|SECTION 10 AGENCY PROVISIONS    |  | 66                                                                           
|10.1                            |  | Appointment, Powers and Immunities; Delegation of Duties; Liability of Agents |  | 66
|10.2                            |  | Reliance by Administrative Agent                                              |  | 67
|10.3                            |  | Defaults                                                                      |  | 68



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|10.4                     |  | Rights as a Lender                                     |  | 68
|------------------------ |  | ------------------------------------------------------ |  | --
|10.5                     |  | Indemnification                                        |  | 68
|10.6                     |  | Non-Reliance on Administrative Agent and Other Lenders |  | 69
|10.7                     |  | Successor Administrative Agent                         |  | 69
|10.8                     |  | Administrative Agent May File Proofs of Claim          |  | 70
|10.9                     |  | Other Agents; Arrangers and Managers                   |  | 70
|SECTION 11 MISCELLANEOUS |  | 70                                                    
|11.1                     |  | Notices                                                |  | 70
|11.2                     |  | Right of Set-Off; Adjustments                          |  | 71
|11.3                     |  | Benefit of Agreement; Assignments                      |  | 72
|11.4                     |  | No Waiver; Remedies Cumulative                         |  | 73
|11.5                     |  | Expenses; Indemnification                              |  | 73
|11.6                     |  | Amendments, Waivers and Consents                       |  | 74
|11.7                     |  | Counterparts                                           |  | 75
|11.8                     |  | Headings                                               |  | 75
|11.9                     |  | Survival                                               |  | 75
|11.10                    |  | Governing Law; Submission to Jurisdiction; Venue       |  | 75
|11.11                    |  | Severability                                           |  | 76
|11.12                    |  | Entirety                                               |  | 76
|11.13                    |  | Binding Effect; Termination                            |  | 76
|11.14                    |  | Confidentiality                                        |  | 76
|11.15                    |  | Conflict                                               |  | 77



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|SCHEDULES        
|-----------------
|Schedule 1.1(a)  
|Schedule 1.1(b)  
|Schedule 2.1(a)  
|Schedule 2.3(a)  
|Schedule 6.13    
|Schedule 6.24    
|Schedule 7.6     
|Schedule 8.1     
|                 
|EXHIBITS         
|                 
|Exhibit 2.1(b)(i)
|Exhibit 2.4(b)(i)
|Exhibit 2.1(e)   
|Exhibit 2.4(d)   
|Exhibit 3.2      
|Exhibit 7.1(c)   
|Exhibit 7.12     
|Exhibit 11.3(b)  







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AMENDED AND RESTATED CREDIT AGREEMENT



THIS AMENDED AND RESTATED CREDIT AGREEMENT dated as of July 17, 2003 (as amended, modified, restated or supplemented from
time to time, the Credit Agreement), 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 hereto or from time to time joined pursuant to Section 7.12 hereof (such
Subsidiaries are hereinafter referred to individually as a Guarantor and collectively as the Guarantors), the Lenders (as defined herein), 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).



W I T N E S S E T H



WHEREAS, certain of
the Lenders and other financial institutions have made available to the Borrowers a $300,000,000 credit facility, on the terms and conditions contained in that certain Credit Agreement dated as of December 13, 2000 (as amended and in effect
immediately prior to the date hereof, the 2000 Credit Agreement) by and among the Borrowers, such Lenders, certain other financial institutions, the Administrative Agent and the other parties thereto;



WHEREAS, the Borrowers, the Lenders, the Administrative Agent and the
other parties hereto desire to amend and restate the terms of the 2000 Credit Agreement in order to (a) reduce the amount of the credit facility provided thereunder to $250,000,000 and (b) amend certain other terms thereof, all on the terms and
conditions set forth herein and in the other Credit Documents (as amended as of the date hereof);



NOW, THEREFORE, IN CONSIDERATIONof the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree that the 2000 Credit Agreement is amended and restated in its entirety as follows:



SECTION 1



DEFINITIONS



1.1 Definitions.



As used in this Credit Agreement, the following terms shall have the meanings specified below unless the context otherwise requires:



Acquired Properties means, at any time,
all interests in Properties purchased by any Borrower, any Consolidated Party or any unconsolidated affiliate thereof within the previous three (3) calendar months from any third party entity through an arms length transaction.



Additional Credit Party means each Person
that becomes a Guarantor after the Closing Date by execution of a Joinder Agreement.



Adjusted Base Rate means the Base Rate plus the Applicable Percentage.



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Adjusted EBITDA means, for any period, the sum of (a) EBITDA for such
period less (b) aggregate Capital Expenditure Reserves for all Properties with respect to such period; provided, that such sum shall be exclusive of any adjustment for such period attributable to the Straight-Lining of Rents.



Adjusted Eurodollar Rate means the
Eurodollar Rate plus the Applicable Percentage.



Adjusted Investment Value means, as of any date, (a) with respect to the ratio specified in Section 7.11(m), the sum of (i) the total assets as of such date, as determined in accordance with GAAP, of Non-Wholly Owned
Subsidiaries which are Credit Parties, less (ii) that portion thereof attributable to the owners thereof other than the Borrowers or any Wholly Owned Subsidiary, and (b) with respect to the ratio specified in Section 7.11(n), the sum of (i)
investments in any Minority Interest Entities as of such date of determination, plus (ii) (A) the total assets as of such date, as determined in accordance with GAAP, of Non-Wholly Owned Subsidiaries which are not Credit Parties, less
(B) that portion thereof attributable to the owners thereof other than the Borrowers or any Wholly Owned Subsidiary, plus (iii) the aggregate outstanding principal balance of all loans made by a Consolidated Party to a Person which is not a
Credit Party to the extent such loans are not included in (i) or (ii) of this subsection (b), plus (iv) the aggregate outstanding principal balance of all loans made by a third party to a Person which is not a Credit Party if such loans are
guaranteed by a Consolidated Party to the extent such guaranteed loans are not included in (i), (ii) or (iii) of this subsection (b).



Adjusted NOI means, with respect to any applicable time period for any Property, (a) Net Operating Income for such
period with respect to such Property less (b) the sum of (i) the Capital Expenditure Reserve amount for such Property during such period, plus (ii) a management fee in the amount of three percent (3%) of total revenues derived from the
Property during such period; provided, that such amount shall be exclusive of any adjustment for such period attributable to the Straight-Lining of Rents; provided, further, that, in each case, (i) all amounts included in the above calculations (and
not otherwise adjusted for interests in Minority Interest Entities) shall be adjusted to account for any amounts attributable to any interests held by any Consolidated Party in any Minority Interest Entity and (ii) all amounts included in the above
calculations (and not otherwise adjusted to account for Outside Interests) shall be adjusted to deduct therefrom the pro rata share of such amounts allocable to Outside Interests.



Administrative Agent shall have the meaning assigned to such term in the heading hereof,
together with any successors or assigns.



Affiliate means, with respect to any Person, any other Person (i) directly or indirectly controlling or controlled by or under direct or indirect common control with such Person or (ii) directly or indirectly owning or
holding five percent (5%) or more of the equity interest in such Person. For purposes of this definition, control when used with respect to any Person means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms controlling and controlled have meanings correlative to the foregoing.



Agent-Related Persons means the
Administrative Agent, together with its Affiliates (including, in the case of Bank of America in its capacity as the Administrative Agent, Banc of America Securities LLC), and the officers, directors, employees, agents and attorneys-in-fact of such
Persons and Affiliates.



Annualized
Adjusted NOI means (a) for each Property owned for 12 months or more, Adjusted NOI for such Property for the immediately preceding 12 month period and (b) for each Property owned for a period of less than 12 months, Adjusted NOI for such
Property calculated by annualizing year-to-date Adjusted NOI for such Property and adjusting (through appropriate pro-rating, removal or other correction) for all annual or one-time lump sum payments or expenses with respect to the Property or for
any extraordinary income or expense items with respect to such Property.



Applicable Percentage means, for any day, subject to adjustment as provided in the penultimate paragraph of this definition, the rate per annum set forth below opposite the applicable Unsecured Long
Term Debt Rating then in effect, it being understood that the Applicable Percentage for (i) Eurodollar Loans shall be the percentage set forth under column Applicable Percentage for Eurodollar Loans, (ii) Base Rate Loans shall



2



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be the percentage set forth under the column Applicable Percentage for Base Rate Loans, (iii) Facility Fees shall be the percentage set forth
under the column Applicable Percentage for Facility Fees and (iv) Letter of Credit Fee shall be the percentage set forth under the column Applicable Percentage for Letter of Credit Fee.



|Pricing Level |  | S&P Rating   |  | Moodys Rating |  | Third Debt Rating           |  | ApplicablePercentage forEurodollarLoans |  | ApplicablePercentage for Base RateLoans |  | Applicable Percentagefor Facility Fees |  | ApplicablePercentagefor Letter of Credit Fee
|------------- |  | ------------ |  | -------------- |  | --------------------------- |  | --------------------------------------- |  | --------------------------------------- |  | -------------------------------------- |  | --------------------------------------------
|I             |  | A- or higher |  | A3 or higher   |  | A- /A3 equivalent or higher |  | 0.70%                                   |  | 0.00%                                   |  | 0.15%                                  |  | 0.70%                                       
|II            |  | BBB+         |  | Baa1           |  | BBB+/Baa1 equivalent        |  | 0.80%                                   |  | 0.00%                                   |  | 0.15%                                  |  | 0.80%                                       
|III           |  | BBB          |  | Baa2           |  | BBB/Baa2 equivalent         |  | 0.85%                                   |  | 0.00%                                   |  | 0.20%                                  |  | 0.85%                                       
|IV            |  | BBB-         |  | Baa3           |  | BBB-/Baa3 equivalent        |  | 1.05%                                   |  | 0.15%                                   |  | 0.25%                                  |  | 1.05%                                       
|V             |  | BB+ or Lower |  | Ba1 or Lower   |  | BB+/Ba1 equivalent or lower |  | see Pricing Level V Sub-Chart below     |  | see Pricing Level V Sub-Chart below     |  | 0.30%                                  |  | See pricing Level V Sub-Chart below         



Pricing Level V
Sub-Chart (for determination of the Applicable Percentage(s) for Eurodollar Loans and Base Rate Loans when the applicable Unsecured Long Term Debt Rating dictates use of Pricing Level V in the chart set forth above):



|Pricing Level |  | TL/TA Ratio (as calculated pursuant to the most-recentlydelivered officers certificatepursuant to Section 7.1(c) hereof) |  | Applicable Percentage forEurodollar Loans and Letter ofCredit Fees |  | Applicable Percentage for Base Rate Loans
|------------- |  | ------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------ |  | -----------------------------------------
|V-A           |  | > 0.50                                                                                                                    |  | 1.65%                                                              |  | 0.30%                                    
|V-B           |  | > 0.45 to£0.50                                                                                                            |  | 1.55%                                                              |  | 0.30%                                    
|V-C           |  | > 0.35 to£0.45                                                                                                            |  | 1.45%                                                              |  | 0.25%                                    
|V-D           |  | £0.35                                                                                                                     |  | 1.25%                                                              |  | 0.20%                                    



If (i) the Interest
Coverage Ratio, as calculated pursuant to each of the two most-recently delivered quarterly officers certificates delivered pursuant to Section 7.1(c) hereof, is greater than 2.25 to 1.00, (ii) the Fixed Charge Coverage Ratio, as calculated
pursuant to each of the two most-recently delivered quarterly officers certificates delivered pursuant to Section 7.1(c) hereof, is greater than 1.70 to 1.00, and (iii) the Borrowers are subject to Pricing Level IV or V (including the
Pricing Level V Sub-Chart) as set forth above, the percentages set forth in those Pricing Level portions of the above Chart and Sub-Chart and in each column other than the column titled Applicable Percentage For Facility Fees shall be
reduced by five hundredths of one percent (0.05%).



The
Applicable Percentage shall be adjusted effective on the next Business Day following any change in the Unsecured Long Term Debt Rating; provided, however, that to the extent the Unsecured Long Term Debt Rating causes the Applicable Percentage to be
calculated pursuant to the Pricing Level V Sub-Chart, the Applicable Percentage shall be set using the information provided in the most-recently delivered officers certificate pursuant to Section 7.1(c) hereof and adjusted from time to time
thereafter in accordance with the Pricing Level V Sub-Chart using the applicable TL/TA Ratio. The Principal Borrower shall notify the Administrative Agent in writing promptly after becoming aware of any change in the Unsecured Long Term Debt Rating.



3



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Notwithstanding anything to the contrary contained in the foregoing, to the extent the Principal Borrower
fails to deliver any officers certificate as of the date required pursuant to Section 7.1(c) hereof and has a credit rating of BB+/Ba1, an equivalent rating or lower, the Applicable Percentage as of the date immediately following such required
date of delivery and until the delivery of such officers certificate shall be the rate specified in line V-A of the Pricing Level V Sub-Chart.



Arranger means Banc of America Securities LLC, in its capacity as sole lead arranger and sole book manager.



Asset Disposition means the
disposition of any assets (including without limitation the Capital Stock of a Subsidiary) of any Consolidated Party whether by sale, lease (but excluding the lease of assets in the ordinary course of business), transfer or otherwise to a Person
other than a Credit Party.



Attorney
Costs means and includes all reasonable fees, costs, expenses and disbursements of any law firm or other external counsel and, without duplication, the allocated reasonable cost of internal legal services and all reasonable expenses and
disbursements of internal counsel.



Bank of America means Bank of America, N.A. and its successors.



Bankruptcy Code means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded or
replaced from time to time.



Bankruptcy Event means, with respect to any Person, the occurrence of any of the following with respect to such Person: (i) a court or governmental agency having jurisdiction in the premises shall enter a decree or order
for relief in respect of such Person in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of such Person or for any substantial part of its property or ordering the winding up or liquidation of its affairs; or (ii) there shall be commenced against such Person an involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or any case, proceeding or other action for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its
property or for the winding up or liquidation of its affairs, and such involuntary case or other case, proceeding or other action shall remain undismissed, undischarged or unbonded for a period of sixty (60) consecutive days; or (iii) such Person
shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or
taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its property or make any general assignment for the benefit of creditors; or (iv) such Person
shall admit in writing its inability to pay its debts generally as they become due.



Base Rate means, for any day, the rate per annum equal to the higher of (a) the Federal Funds Rate for such day plus
one-half of one percent (.5%) and (b) the Prime Rate for such day. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Rate shall be effective on the effective date of such change in the Prime Rate or Federal Funds
Rate.



Base Rate Loan means
any Loan bearing interest at a rate determined by reference to the Base Rate.



Borrowers means the Persons identified as such in the heading hereof, together with any permitted successors and assigns.



Budgeted Project Costs means, with respect to Properties Under Development, the budgeted
cost of construction and final completion of such Properties Under Development; provided that the Budgeted Project Costs shall include projected operating deficits through completion and the projected date of occupancy of eighty-five percent
(85%) of the gross leasable space; provided further that, with respect to Properties Under Development by Minority Interest Entities, the Budgeted Project Costs shall be the applicable Consolidated



4



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Partys share of the budgeted costs of construction and final completion (based on the greater of (x) the Minority Interest of such Consolidated Party
or (y) such Consolidated Partys obligation to provide funds to the Minority Interest Entity, which could include, for example, completion guaranties).



Build To Suit Properties means those Properties Under Development which have been 100% leased to tenants and have
projected net operating income (based on projections approved by the Administrative Agent in its discretion) during its first year after final completion in an amount which results in no less than a 9.75% annual rate of return on all costs of
construction of such Property Under Development, including, without limitation, financing costs and operating deficits.



Business Day means a day other than a Saturday, Sunday or other day on which commercial banks in Charlotte, North
Carolina or New York, New York are authorized or required by law to close, except that, when used in connection with a Eurodollar Loan, such day shall also be a day on which dealings between banks are carried on in U.S. dollar deposits
in London, England.



Capital
Expenditures means all expenditures required for the leasing of space within Properties owned and previously leased by the Consolidated Parties, including upfit expenses and leasing commissions, together with expenses for renovation or
improvement of existing properties that are classified as capital expenditures under GAAP. Leasing and tenant improvements expenditures with respect to space not previously leased shall not be included in any calculation of Capital Expenditures, but
must be reported to the Administrative Agent on a quarterly basis as set forth in Section 7.1.



Capital Expenditure Reserve means, with respect to (a) any office, industrial or retail Property, a normalized annual
reserve for replacement reserves, capital expenditures, tenant improvements, and leasing commissions in the amount of $1.00 per year per square foot of net leaseable area contained in such Property, and (b) any multi-family Property, a normalized
annual reserve for replacement reserves, capital expenditures, tenant improvements, and leasing commissions in the amount of $250 per year per unit; in each case, less an amount equal to the aggregate percentage ownership interests held by
any entities that are not affiliated with any of the Consolidated Parties multiplied by the total reserve required in (a) or (b) above for the subject Property. When the Capital Expenditure Reserve is used in computing an amount with respect to a
period which is shorter than a year, said amount shall be appropriately pro rated.



Capital Lease means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that
Person as lessee which, in accordance with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.



Capital Stock means (i) in the case of a corporation, capital stock, (ii) in the case of an association or business
entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (iii) in the case of a partnership, partnership interests (whether general or limited), (iv) in the case of a limited liability
company, membership interests and (v) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.



Capitalization Rate means nine percent
(9.00%) per annum.



Cash Available
for Distribution means, for any given calculation date, all Funds from Operations (as defined as of the Closing Date by the Board of Governors of the National Association of Real Estate Investment Trusts) for the period commencing as of
(and including) April 1, 2003 and ending on the last day of the fiscal quarter most recently preceding such calculation date less (a) Capital Expenditures over such period and (b) Scheduled Funded Debt Payments over such period.



Cash Equivalents means (a) securities
issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof) having maturities of
not more than twelve months from the date of acquisition, (b) U.S. dollar denominated time deposits and certificates of deposit of (i) any Lender, (ii) any domestic commercial bank of recognized standing having capital and surplus in excess of
$500,000,000



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or (iii) any bank whose short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moodys is at least P-1 or the
equivalent thereof (any such bank being an Approved Bank), in each case with maturities of not more than 270 days from the date of acquisition, (c) commercial paper and variable or fixed rate notes issued by any Approved Bank (or
by the parent company thereof) or any variable rate notes issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moodys and maturing
within six months of the date of acquisition, (d) repurchase agreements with a bank or trust company (including any of the Lenders) or recognized securities dealer having capital and surplus in excess of $500,000,000 for direct obligations issued by
or fully guaranteed by the United States of America in which any Credit Party shall have a perfected first priority security interest (subject to no other Liens) and having, on the date of purchase thereof, a fair market value of at least 100% of
the amount of the repurchase obligations and (e) Investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment Company Act of 1940, as amended, which are administered by
reputable financial institutions having capital of at least $500,000,000 and the portfolios of which are limited to Investments of the character described in the foregoing subdivisions (a) through (d).



Change of Control means the occurrence of
any of the following events: (i) any Person or two or more Persons acting in concert shall have acquired beneficial ownership, directly or indirectly, of, or shall have acquired by contract or otherwise, or shall have entered into a contract or
arrangement that, upon consummation, will result in its or their acquisition of, control over, Voting Stock of Highwoods Properties (or other securities convertible into such Voting Stock) representing 35% or more of the combined voting power of all
Voting Stock of Highwoods Properties, or (ii) during any period of up to 24 consecutive months, commencing after the Closing Date, individuals who at the beginning of such 24 month period were directors of Highwoods Properties (together with any new
director whose election by Highwoods Properties Board of Directors or whose nomination for election by Highwoods Properties shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were
directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the directors of Highwoods Properties then in office, or (iii) Highwoods Properties
or any Wholly Owned Subsidiary which is a Credit Party shall fail to be the sole general partner of Highwoods Realty or own a majority of the Capital Stock of Highwoods Services or Highwoods Finance. As used herein, beneficial ownership
shall have the meaning provided in Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934.



CIP Properties means, as of any given calculation date, a collective reference to all Properties Under Development the
total contemplated space in which are less than 75% pre-leased at the time of such calculation.



Closing Date means the date hereof.



Code means the Internal Revenue Code of 1986, as amended, and any successor statute
thereto, as interpreted by the rules and regulations issued thereunder, in each case as in effect from time to time. References to sections of the Code shall be construed also to refer to any successor sections.



Commitment means (i) with respect to each
Lender, the Revolving Commitment of such Lender, (ii) with respect to the Swingline Lender, the Swingline Commitment, and (iii) with respect to the Issuing Lender, the LOC Commitment.



Commitment Percentage means, for any Lender, the percentage identified as its Commitment
Percentage on Schedule 2.1(a), as such percentage may be modified in connection with any assignment made in accordance with the provisions of Section 11.3.



Consolidated Parties means a collective reference to Highwoods Properties and its
consolidated Subsidiaries, including Highwoods Realty, and Consolidated Party means any one of them.



Credit Documents means a collective reference to this Credit Agreement, the Notes, the LOC Documents, each Joinder
Agreement and all other related agreements and documents issued or delivered



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hereunder or thereunder or pursuant hereto or thereto (in each case, as the same may be amended, modified, restated, supplemented, extended, renewed or
replaced from time to time) and Credit Document means any one of them.



Credit Parties means a collective reference to the Borrowers and the Guarantors, and Credit Party means any
one of them.



Credit Party
Obligations means, without duplication, (a) all of the obligations of the Credit Parties to the Lenders (including the Issuing Lender) and the Administrative Agent, whenever arising, under this Credit Agreement, the Notes or any of the
other Credit Documents (including, but not limited to, any interest accruing after the occurrence of a Bankruptcy Event with respect to any Credit Party, regardless of whether such interest is an allowed claim under the Bankruptcy Code) and (b) all
liabilities and obligations, whenever arising, owing from any of the Borrowers to any Lender, or any Affiliate of a Lender, arising under any Hedging Agreement related to the Credit Documents or the obligations created thereby. It is specifically
understood and agreed that (i) the Credit Party Obligations of each Guarantor include any and all obligations that such Guarantor may have as a Borrower or Guarantor hereunder or under any of the other Credit Documents and (ii) the Credit Party
Obligations shall include the LOC Obligations.



Default means any event, act or condition which with notice or lapse of time, or both, would constitute an Event of Default.



Derivative Exposure means the maximum liability (including costs, fees and expenses), based upon a liquidation or
termination as of the date of the applicable covenant compliance test, of any Person under any interest rate swap, collar, cap or other interest rate protection agreements, treasury locks, equity forward contracts, foreign currency exchange
agreements, commodity purchase or option agreements or other interest or exchange rate or commodity price hedging agreements.



Designated Amount means, with respect to any Facility Fee paid by the Borrowers hereunder with respect to a given
calendar quarter, the amount, if any, equal to (a) the product of (i) the Facility Fee Modifier (if any) used in calculating such Facility Fee, multiplied by (ii) the maximum amount of the Revolving Committed Amount during the applicable calendar
quarter, less (b) the product of (i) the Facility Fee Modifier (if any) used in calculating such Facility Fee, multiplied by (ii) the average weighted outstanding principal amount of the Loans during the applicable calendar quarter (or portion
thereof).



Documentation
Agent shall have the meaning set forth in the first paragraph of this Credit Agreement, together with any successors or assigns.



Dollars and $ means dollars in lawful currency of the United States of America.



Domestic Subsidiary means, with respect
to any Person, any Subsidiary of such Person which is incorporated or organized under the laws of any State of the United States or the District of Columbia.



EBITDA means, for any period, the sum of (i) aggregate Net Income during such period, plus (ii) an amount
which, in the determination of Net Income for such period, has been deducted for (A) Interest Expense, (B) total federal, state, local and foreign income, value added and similar taxes and (C) depreciation and amortization expense, with each of (A),
(B) and (C) above determined in accordance with GAAP; provided, that, (i) each of the above calculations shall include, without duplication, any amounts attributable to any interests held by any Consolidated Party in any Minority Interest Entity and
(ii) all amounts included in the above calculations (and not otherwise adjusted to account for Outside Interests) shall be adjusted to deduct therefrom the pro rata share of such amounts allocable to Outside Interests.



Eligible Assignee means (i) a Lender;
(ii) an Affiliate of a Lender; and (iii) any other Person approved by the Administrative Agent (such approval not to be unreasonably withheld or delayed) and, unless an Event of Default has occurred and is continuing at the time any assignment is
effected in accordance with Section 11.3, the Principal Borrower (such approval not to be unreasonably withheld or



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delayed by the Principal Borrower and such approval to be deemed given by the Principal Borrower if no objection is received by the assigning Lender and the
Administrative Agent from the Principal Borrower within two Business Days after notice of such proposed assignment has been provided by the assigning Lender to the Principal Borrower); provided, however, that neither the Principal
Borrower nor an Affiliate of the Principal Borrower shall qualify as an Eligible Assignee.



Environmental Laws means any and all lawful and applicable Federal, state, local and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or other governmental restrictions relating to the environment or to emissions, discharges, releases or threatened releases of
pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes into the environment including, without limitation, ambient air, surface water, ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport, or handling of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes.



Equity Issuance means any issuance by Highwoods Properties or Highwoods Realty to any
Person which is not a Credit Party of (a) shares of its Capital Stock, (b) any shares of its Capital Stock pursuant to the exercise of options or warrants or (c) any shares of its Capital Stock pursuant to the conversion of any debt securities to
equity.



ERISA means the
Employee Retirement Income Security Act of 1974.



ERISA Affiliate means any trade or business (whether or not incorporated) under common control with any Credit Party within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).



ERISA Event means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by any Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan
year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any
ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or
the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.



Eurodollar Loan means any Loan that bears
interest at a rate based upon the Eurodollar Rate.



Eurodollar Rate means for any Interest Period with respect to any Eurodollar Rate Loan:



(a) the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page,
as determined by the Administrative Agent) as the average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined
as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or



(b) if the rate referenced in the preceding clause (a) does not appear on such page or service or such page or service shall not be
available, the rate per annum equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars
(for delivery on the first day of such Interest Period) with a term equivalent to such



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Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or



(c) if the rates referenced in the preceding clauses (a) and
(b) are not available, the rate per annum determined by the Administrative Agent as the rate of interest at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar
Rate Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of Americas London Branch to major banks in the London interbank eurodollar market at their request at
approximately 4:00 p.m. (London time) two Business Days prior to the first day of such Interest Period.



Event of Default means such term as defined in Section 9.1.



Existing Letters of Credit means those
Letters of Credit outstanding on the Closing Date and identified on Schedule 2.3(a) attached hereto.



Facility Fee shall have the meaning assigned to such term in Section 3.5(a).



Facility Fee Modifier means, for any date
of calculation, a per annum percentage equal to the sum of (a) to the extent the TL/TA Ratio, as most-recently properly calculated pursuant to any officers certificate delivered pursuant to Section 7.1(c) hereof, exceeds 0.55 to 1.00, three
tenths of one percent (0.30%), plus (b) to the extent the Interest Coverage Ratio, as most-recently properly calculated pursuant to any officers certificate delivered pursuant to Section 7.1(c) hereof, is less than 2.15 to 1.00, one
quarter of one percent (0.25%), plus (c) to the extent the Fixed Charge Coverage Ratio, as most-recently properly calculated pursuant to any officers certificate delivered pursuant to Section 7.1(c) hereof, is less than 1.60 to 1.00,
one quarter of one percent (0.25%); provided, however, that to the extent each of clauses (b) and (c) of this definition would otherwise each require a one quarter of one percent (0.25%) increase in the Facility Fee Modifier (for a total of one half
of one percent (0.50%)), the total increase in the Facility Fee Modifier as a result of the application of clauses (b) and (c) shall be three tenths of one percent (0.30%).



Fee Letter means the fee letter agreement, dated March 24, 2003 among the Borrower, the
Administrative Agent and the Arranger.



Fees means all fees payable pursuant to Section 3.5 (including, without limitation, fees payable pursuant to the terms of the Fee Letter).



Federal Funds Rate means, for any day, the rate per annum (rounded upwards, if necessary,
to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New
York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to the Administrative Agent (in its individual capacity) on such day on such
transactions as determined by the Administrative Agent.



Fixed Charge Coverage Ratio means, as of the end of each fiscal quarter of the Consolidated Parties for the twelve month period ending on such date, the ratio of (a) Adjusted EBITDA for the
applicable period to (b) the sum of (i) Interest Expense for the applicable period plus (ii) preferred dividends permitted hereunder for the applicable period plus (iii) Scheduled Funded Debt Payments for the applicable period.



Foreign Subsidiary means,
with respect to any Person, any Subsidiary of such Person which is not a Domestic Subsidiary of such Person.



Funded Indebtedness means, with respect to any Person, without duplication, (a) all Indebtedness of such Person other
than Indebtedness of the types referred to in clause (e), (g) and (i) of the definition of



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Indebtedness set forth in this Section 1.1, (b) all Indebtedness of another Person of the type referred to in clause (a) above secured by (or for
which the holder of such Funded Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (c) all Guaranty Obligations of such Person with respect to Indebtedness of the type referred to in clause (a) above of another Person and (d) Indebtedness of the type referred to in clause (a) above of any
partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer.



GAAP means generally accepted accounting principles in the United States applied on a consistent basis and subject to
the terms of Section 1.3.



Governmental Authority means any Federal, state, local or foreign court or governmental agency, authority, instrumentality or regulatory body.



Guarantors means a collective reference to each of the Persons identified as a
Guarantor on the signature pages hereto and each Additional Credit Party which may hereafter execute a Joinder Agreement, together with their successors and permitted assigns, and Guarantor means any one of them.



Guaranty Obligations
means, with respect to any Person, without duplication, any obligations of such Person (other than endorsements in the ordinary course of business of negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any
Indebtedness of any other Person in any manner, whether direct or indirect, and including without limitation any obligation, whether or not contingent, (i) to purchase any such Indebtedness or any property constituting security therefor, (ii) to
advance or provide funds or other support for the payment or purchase of any such Indebtedness or to maintain working capital, solvency or other balance sheet condition of such other Person (including without limitation keep well agreements,
maintenance agreements, comfort letters or similar agreements or arrangements) for the benefit of any holder of Indebtedness of such other Person, (iii) to lease or purchase property, securities or services primarily for the purpose of assuring the
holder of such Indebtedness, (iv) to guaranty to any Person rental income levels (or shortfalls) or re-tenanting costs (including tenant improvements, moving expenses, lease commissions and any other costs associated with procuring new tenants);
provided, that such obligations shall be determined to be equal to the maximum potential amount of the payments due from the Person guaranteeing the applicable rental income levels over the term of the applicable lease), (v) to guaranty the
completion of any Properties Under Development, whether or not specifically including costs associated therewith or (vi) to otherwise assure or hold harmless the holder of such Indebtedness against loss in respect thereof. The amount of any Guaranty
Obligation hereunder shall (subject to any limitations set forth therein) be deemed to be an amount equal to the outstanding principal amount (or maximum principal amount, if larger) of the obligation or Indebtedness in respect of which such
Guaranty Obligation is made. It is specifically understood and agreed that the Guaranty Obligations of each Guarantor include any and all obligations that such Guarantor may have as a Borrower hereunder or under any of the other Credit Documents.



Hedging Agreement means
any interest rate protection agreement, rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index option, bond option, interest rate option, foreign exchange transaction, short sale
transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross currency rate swap transaction, currency option, any other similar transaction (including any option with respect to any of these transactions) and
any combination of the foregoing which directly hedges or offsets interest rate risk or other market risk with respect to any of the obligations of any Consolidated Party, in each case, entered into by and between a Consolidated Party and any Lender
or any Affiliate of a Lender.



Highwoods Preserve Properties means those Properties located at 8125 Highwoods Palm Way (Building I), 18209-17 Bermuda Green Drive (Buildings II & IV), 18301 Bermuda Green Drive (Building III), 18210 Bermuda Green
Drive (Building V) in Tampa, Florida.



Highwoods Realty Limited Partnership Agreement means that certain limited partnership agreement of Highwoods Realty dated as of June 14, 1994, as amended or modified from time to time.



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Indebtedness of any Person, without duplication, means, in each case
whether direct or contingent and inclusive of all costs and fees associated with any Derivative Exposure, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, or upon which interest payments are customarily made, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person (other than customary reservations or
retentions of title under agreements with suppliers entered into in the ordinary course of business), (d) all obligations of such Person issued or assumed as the deferred purchase price of property or services purchased by such Person (other than
trade debt incurred in the ordinary course of business and due within six months of the incurrence thereof) which would appear as liabilities on a balance sheet of such Person, (e) all obligations of such Person under take-or-pay or similar
arrangements or under commodities agreements, (f) all indebtedness of others secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of
production from, property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed, (g) all Guaranty Obligations of such Person, (h) the principal portion of all obligations (whether direct or contingent and
inclusive of all costs and fees associated with any Derivative Exposure) of such Person under Capital Leases, (i) all obligations of such Person in respect of interest rate swap, collar, cap or other interest rate protection agreements, treasury
locks, equity forward contracts, foreign currency exchange agreements, commodity purchase or option agreements or other interest or exchange rate or commodity price hedging agreements (including, but not limited to, the Hedging Agreements), (j) all
obligations of such Person to repurchase any securities which repurchase obligation is related to the issuance thereof, (k) the maximum amount of all standby letters of credit issued or bankers acceptances facilities created for the account of
such Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed), (l) all preferred Capital Stock issued by such Person and required by the terms thereof to be redeemed, or for which mandatory sinking fund payments are
due, by a fixed date, (m) all other obligations of such Person under any arrangement or financing structure classified as debt (for tax purposes) by any nationally recognized rating agency, (n) the principal portion of all obligations of such Person
for any Off Balance Sheet Liabilities and (o) the indebtedness of any partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer.



Information shall have the meaning given to such term in Section 11.14 hereof.



Interest Coverage Ratio
means, with respect to the Consolidated Parties on a consolidated basis for the twelve month period ending on the last day of any fiscal quarter of the Consolidated Parties, the ratio of (a) Adjusted EBITDA for such period to (b) Interest Expense
for such period.



Interest
Expense means, for any period, the sum of (a) interest expense (including, without limitation, the interest component under Capital Leases and with respect to Off Balance Sheet Liabilities) of the Consolidated Parties on a consolidated
basis for such period, as determined in accordance with GAAP, plus (b) an amount equal to the aggregate of interest expense (including the interest component under Capital Leases and with respect to any Off Balance Sheet Liabilities), as
determined in accordance with GAAP, of each Minority Interest Entity multiplied by the respective Minority Interest in each such entity; provided, that the amount of any Facility Fees paid by the Borrowers hereunder during any such period
constituting Interest Expense for purposes of this definition shall be equal to (i) the total amount of such Facility Fees paid during such period, less (ii) the Designated Amount with respect to such Facility Fees.



Interest Payment Date means (a) as to
Base Rate Loans, the first day of each calendar month (as to interest through the end of the prior calendar month) and the Maturity Date and (b) as to Eurodollar Loans, the last day of each applicable Interest Period and the Maturity Date, and in
addition where the applicable Interest Period for a Eurodollar Loan is greater than three months, then also the date three months from the beginning of the Interest Period and each three months thereafter.



Interest Period means (i) as to any
Eurodollar Loan, a period of one, two, three, six, nine or twelve months duration (provided that a period of twelve months shall be deemed, as used in connection with the term Interest Period, to be equal to 364 days and shall only
be available to the Borrowers to the extent available to each Lender), commencing in each case, on the date of the borrowing (including continuations and conversions thereof) and (ii) as to any Swingline Loan, a period commencing in each case on the
date of the borrowing and ending on the date agreed to by one or more of the Borrowers and the Swingline Lender in accordance with the



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provisions of Section 2.4(b)(i) (such ending date in any event to be not more than three (3) Business Days from the date of borrowing); provided,
however, (a) if any Interest Period would end on a day which is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day (except that in the case of Eurodollar Loans where the next succeeding Business Day
falls in the next succeeding calendar month, then on the next preceding Business Day), (b) no Interest Period shall extend beyond the Maturity Date and (c) in the case of Eurodollar Loans, where an Interest Period begins on a day for which there is
no numerically corresponding day in the calendar month in which the Interest Period is to end, such Interest Period shall end on the last Business Day of such calendar month.



Investment means any investment made in cash or by delivery of property by any
Consolidated Party (a) in any Person, whether by (i) acquisition of assets, shares of Capital Stock, Investment Security, bonds, notes, debentures, partnership, joint ventures or other ownership interests or other securities of any Person or (ii)
any deposit with, or advance, loan or other extension of credit to, any Person (other than deposits made in connection with the purchase of equipment or other assets in the ordinary course of business) or (iii) any other capital contribution to or
investment in such Person, including, without limitation, any Guaranty Obligations (including any support for a letter of credit issued on behalf of such Person) incurred for the benefit of such Person, or (b) in any property.



Investment Security means
security as defined in Section 2(1) of the Securities Act of 1933, as amended.



Issuing Lender means Bank of America.



Issuing Lender Fees shall have the meaning assigned to such term in Section 3.5(b)(ii).



Joinder Agreement means a
Joinder Agreement substantially in the form of Exhibit 7.12 hereto, executed and delivered by an Additional Credit Party in accordance with the provisions of Section 7.12.



Lender means any of the Persons identified as a Lender on the signature pages
hereto, and any Person which may become a Lender by way of assignment in accordance with the terms hereof, together with their successors and permitted assigns.



Letter of Credit means the Existing Letters of Credit and any letter of credit issued by
the Issuing Lender for the account of any Credit Party in accordance with the terms of Section 2.3.



Letter of Credit Fee shall have the meaning assigned to such term in Section 3.5(b)(i).



Lien means any mortgage, pledge,
hypothecation, assignment, deposit arrangement, security interest, encumbrance, lien (statutory or otherwise), preference, priority or charge of any kind (including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement, any financing or similar statement or notice filed under the Uniform Commercial Code as adopted and in effect in the relevant jurisdiction or other similar recording or notice statute, and any lease in the nature thereof).



Loan or
Loans means the Revolving Loans (or a portion of any Revolving Loan bearing interest at the Adjusted Base Rate or the Adjusted Eurodollar Rate and referred to as a Base Rate Loan or a Eurodollar Loan) and/or the Swingline Loans,
individually or collectively, as appropriate.



LOC Commitment means the commitment of the Issuing Lender to issue Letters of Credit in an aggregate face amount at any time outstanding (together with the amounts of any unreimbursed drawings thereon) of up to the LOC
Committed Amount.



LOC Committed
Amount shall have the meaning assigned to such term in Section 2.3.



LOC Documents means, with respect to any Letter of Credit, such Letter of Credit, any amendments thereto, any documents delivered in connection therewith, any application therefor, and any
agreements, instruments, guarantees or other documents (whether general in application or applicable only to



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such Letter of Credit) governing or providing for (i) the rights and obligations of the parties concerned or at risk or (ii) any collateral security for such
obligations.



LOC
Obligations means, at any time, the sum of (i) the maximum amount which is, or at any time thereafter may become, available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings
referred to in such Letters of Credit plus (ii) the aggregate amount of all drawings under Letters of Credit honored by the Issuing Lender but not theretofore reimbursed by the Borrowers.



Material Adverse Effect means a material
adverse effect on (i) the condition (financial or otherwise), operations, business, assets, liabilities or prospects of the Consolidated Parties, taken as a whole, (ii) the ability of any Credit Party to perform any material obligation under the
Credit Documents to which it is a party or (iii) the material rights and remedies of the Lenders under the Credit Documents.



Materials of Environmental Concern means any gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under any Environmental Laws, including, without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.



Maturity Date means the
date which is three (3) years from the Closing Date.



Minority Interest means the percentage of the Capital Stock or other equity interest owned by a Consolidated Party in a Minority Interest Entity accounted for pursuant to the equity method of accounting under GAAP.



Minority Interest Entity
means any corporation, partnership, association, joint venture or other entity in each case which is not a Consolidated Party and in which a Consolidated Party owns, directly or indirectly, Capital Stock or any other equity interest.



Moodys means Moodys Investors
Service, Inc., or any successor or assignee of the business of such company in the business of rating securities.



Multiemployer Plan means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the
Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.



Negative Pledge means a provision of any agreement (other than this Credit Agreement or
any other Credit Document) that prohibits the creation of any Lien on any assets of a Person; provided, however, that an agreement that establishes a maximum ratio of unsecured debt to unencumbered assets, or of secured debt to total
assets, or that otherwise conditions a Persons ability to encumber its assets upon the maintenance of one or more specified ratios that limit such Persons ability to encumber its assets but that do not generally prohibit the encumbrance
of its assets, or the encumbrance of specific assets, shall not constitute a Negative Pledge for purposes of this Credit Agreement.



Net Asset Sales Proceeds means, with respect to any Asset Disposition (other than an Asset Disposition qualifying as a
like kind exchange under Section 1031 of the Code), the aggregate proceeds received by any Consolidated Party in cash or Cash Equivalents (including payments in respect of deferred payment obligations when received in the form of cash or Cash
Equivalents and including any proceeds which are used by the applicable Consolidated Party to retire in whole or in part any Indebtedness encumbering the property sold) plus the aggregate principal amount of any Indebtedness encumbering the
property sold assumed by the purchaser of such property, net of (i) direct costs (including, without limitation, legal, accounting and investment banking fees, sales commissions, transfer and recording charges and taxes and other closing costs
customarily allocated to sellers), and (ii) taxes paid or payable by the Consolidated Parties as a result thereof after taking into account any reduction in consolidated tax liability due to available tax credits, deductions or losses, any tax
sharing arrangements and any distributions to shareholders or partners otherwise allowed pursuant to the terms hereof; it being understood that Net Asset Sales Proceeds shall include, without



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limitation and without duplication, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received by any
such Consolidated Party in any Asset Disposition.



Net Cash Proceeds means the aggregate cash proceeds received by the Consolidated Parties in respect of any Equity Issuance, net of (a) direct costs (including, without limitation, legal, accounting and investment banking
fees and sales commissions) and (b) taxes paid or payable as a result thereof; it being understood that Net Cash Proceeds shall include, without limitation, any cash received upon the sale or other disposition of any non-cash
consideration received by the Consolidated Parties in any Equity Issuance.



Net Income means, for any period, the sum of (i) net income (excluding extraordinary gains and losses and related tax effects thereof) after taxes for such period of the Consolidated Parties on a
consolidated basis, as determined in accordance with GAAP, plus (ii) without duplication, an amount equal to that portion attributable to Highwoods Realty of the line item minority interests relating to operating partnership units for
such period, as shown on the consolidated income statements of the Consolidated Parties, plus (iii) without duplication, an amount equal to the aggregate of net income (excluding extraordinary gains and losses and related tax effects thereof) after
taxes for such period, as determined in accordance with GAAP, of each Minority Interest Entity multiplied by the respective Minority Interest of each such entity; provided, however, that notwithstanding anything contained herein to the contrary, (A)
the aggregate amount of gains resulting from Asset Dispositions of the Consolidated Parties and included in the calculation of Net Income shall not exceed $5,000,000 for any fiscal quarter (or any portion thereof) included in the
applicable calculation period (on a gross basis, without netting for losses associated with other Asset Dispositions during such fiscal quarter or any other time during the applicable calculation period); and (B) the aggregate amount of losses
resulting from Asset Dispositions of the Consolidated Parties and included in the calculation of Net Income shall not exceed $5,000,000 for any fiscal quarter (or any portion thereof) included in the applicable calculation period (on a
gross basis, without netting for gains associated with other Asset Dispositions during such fiscal quarter or any other time during the applicable calculation period).



Net Operating Income means, for any given period and with respect to any given Property
or Properties, the amount equal to: (a) the sum of (i) gross revenues attributable to such Property or Properties for such period, less (ii) to the extent otherwise included in gross revenues, interest income; less (b) an amount equal
to (i) operating expenses allocable to such Property or Properties (excluding any management fees paid with respect to such Property or Properties), less (ii) to the extent included in the calculation of operating expenses, (A) income taxes,
(B) depreciation and amortization, and (C) Interest Expense; in each case, provided, that, (i) all amounts included in the above calculations shall be adjusted to account for any amounts attributable to any interests held by any Consolidated Party
in any Minority Interest Entity and (ii) all amounts included in the above calculations and not otherwise adjusted to account for Outside Interests shall be adjusted to deduct therefrom the pro rata share of such amounts allocable to Outside
Interests.



Non-Guarantor
Subsidiaries means a collective reference to those Persons from time to time listed on Schedule 1.1(b) attached hereto; and Non-Guarantor Subsidiary means any one of such Persons; provided, that such schedule
shall be updated in accordance with Section 6.13 hereof.



Non-Wholly-Owned Subsidiary means a Subsidiary of Highwoods Properties which is not a Wholly Owned Subsidiary.



Note or Notes means the Revolving Notes and/or the Swingline Note,
individually or collectively, as appropriate.



Notes Receivable means, all promissory notes or other similar obligations to pay money, whether secured or unsecured, that are not over thirty (30) days past due in which any Borrower, any Consolidated Party or any
unconsolidated affiliate has an interest.



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Notice of Borrowing means a written notice of borrowing as required by
Section 2.1(b)(i) or Section 2.4(b)(i) signed by a Responsible Officer and substantially in the form of Exhibit 2.1(b)(i) or Exhibit 2.4(b)(i), as applicable.



Notice of Extension/Conversion means the written notice of extension or conversion in
substantially the form of Exhibit 3.2, as required by Section 3.2 signed by a Responsible Officer.



Off Balance Sheet Liabilities means, with respect to any Person, any (a) repurchase obligation or liability, contingent
or otherwise, of such Person with respect to any accounts or notes receivable sold, transferred or otherwise disposed of by such Person, (b) repurchase obligation or liability, contingent or otherwise, of such Person with respect to property or
assets leased by such Person as lessee and (c) obligations, contingent or otherwise, of such Person under any Synthetic Lease, tax retention operating lease, off balance sheet loan or similar off balance sheet financing, in each case, if the
transaction giving rise to such obligation (i) is considered Indebtedness for borrowed money for tax purposes but is classified as an Operating Lease, (ii) does not (and is not required pursuant to GAAP to) appear as a liability on the balance sheet
of such Person, (iii) is a transaction pursuant to which a tenant does not take possession of the leased property, or (iv) is a lease treated as a financing for GAAP or tax purposes, but excluding from the forgoing provisions of this definition any
obligations or liabilities of any such Person as lessee under any Operating Lease so long as the terms of such Operating Lease do not require any payment by or on behalf of such Person at the scheduled termination date of such Operating Lease,
pursuant to a required purchase by or on behalf of such Person of the property or assets subject to such Operating Lease, or under any arrangements pursuant to which such Person guarantees or otherwise assures any other Person of the value of the
property or assets subject to such Operating Lease.



Operating Lease means, as applied to any Person, any lease (including, without limitation, leases which may be terminated by the lessee at any time) of any property (whether real, personal or mixed) which is not a Capital
Lease other than any such lease in which that Person is the lessor.



Other Taxes means such term as is defined in Section 3.11.



Outside Interests means, at any time, interests in the Properties (and, as applicable, the cost thereof, Notes
Receivable with respect thereto, Cash and Cash Equivalents held in connection therewith, the income, revenues, interest expense, taxes, depreciation and amortization attributable thereto) owned by entities that are not Consolidated Parties.



Outstanding Amount means
(i) with respect to Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Revolving Loans, as the case may be, occurring on such date; and (ii) with respect to
any LOC Obligations on any date, the amount of such LOC Obligations on such date after giving effect to any extension of any Letters of Credit occurring on such date and any other changes in the aggregate amount of the LOC Obligations as of such
date, including as a result of any reimbursements of outstanding unpaid drawings under any Letters of Credit or any reductions in the maximum amount available for drawing under Letters of Credit taking effect on such date.



Participation Interest means, a purchase
by a Lender of a participation in any Letters of Credit or LOC Obligations as provided in Section 2.3(c), in Swingline Loans as provided in Section 2.4(b)(iii) or in any Loans as provided in Section 3.14.



PBGC means the Pension Benefit Guaranty
Corporation.



Pension Plan
means any employee pension benefit plan (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by any Credit Party or any ERISA Affiliate
or to which any Credit Party or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately
preceding five plan years.



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Permitted Investments means Investments which are (i) cash and Cash
Equivalents; (ii) Investments existing on the Closing Date and set forth on Schedule 1.1(a); (iii) Investments by any Credit Party in any Wholly Owned Subsidiary that is a Credit Party; (iv) Investments in any Wholly Owned Subsidiary which is
to become a Credit Party pursuant to the terms of Section 7.12 so long as such Wholly Owned Subsidiary becomes a Credit Party in accordance with the requirements of Section 7.12; (v) Investments by any Credit Party in any Preferred Stock Subsidiary
or any wholly owned Subsidiary of a Preferred Stock Subsidiary; (vi) Investments by any Credit Party in any Property owned by such Credit Party and in any personal property incidental to such Property; (vii) Investments in vehicles, furniture,
fixtures and other personal property including supplies and other similar inventory purchased by any Credit Party and used in such Consolidated Partys ordinary course of business; (viii) Investments permitted by Sections 7.11(j), (l), (m) and
(n); and (ix) Investments in Subsidiaries which are not Credit Parties as a result of the application of the last sentence of Section 7.12 hereof.



Person means any individual, partnership, joint venture, firm, corporation, limited liability company, association,
trust or other enterprise (whether or not incorporated) or any Governmental Authority.



Plan means any employee benefit plan (as such term is defined in Section 3(3) of ERISA) established by any
Credit Party or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.



Preferred Stock Subsidiary any entity (i) in which a Credit Party owns at least 90% of the Capital Stock but less than
10% of the Voting Stock and (ii) with respect to which the Principal Borrower certifies in writing to the Administrative Agent that such entity was formed with such an ownership structure such that its income would not adversely affect the
qualification of Highwoods Properties status as a REIT.



Prime Rate means the per annum rate of interest established from time to time by Bank of America as its prime rate, which rate may not be the lowest rate of interest charged by Bank of America to
its customers.



Principal
Borrower means Highwoods Properties.



Pro Forma Compliance Certificate means a certificate of an officer of the Principal Borrower delivered to the Administrative Agent in connection with an Asset Disposition and containing reasonably detailed calculations,
upon giving effect to the applicable transaction on a pro forma basis, of the financial covenants set forth in Section 7.11.



Pro Rata Share means as to each Lender, with respect to such Lenders Revolving Commitment at any time, a fraction
(expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the Revolving Commitment of such Lender at such time and the denominator of which is the amount of the Revolving Committed Amount at such
time; provided that if the Commitment of each Lender to make Loans and the obligation of the Issuing Lender to issue Letters of Credit have been terminated pursuant to the terms of this Credit Agreement, then the Pro Rata Share of such Lender
shall be determined based on the percentage of the Total Outstandings held by such Lender as of the date of calculation (after giving effect to any subsequent assignments made pursuant to the terms hereof).



Properties means all interests in real
property (direct or indirect), together with all improvements thereon, owned by the Borrower, any Consolidated Party or any unconsolidated affiliates thereof and Property means any one of them.



Properties Under Development means
Properties, the primary purpose of which is to be leased in the ordinary course of business and on which any Borrower, any Consolidated Party or any unconsolidated affiliate thereof has commenced construction of a building or other improvements;
provided that any such Property will no longer be considered a Property Under Development when, (i) seventy-five percent (75%) of the gross leasable space to be contained therein upon completion in accordance with then existing plans and
specifications with respect to such Property is occupied by tenants under fully executed leases, in which case such Property shall be considered a Transition Property or (ii) prior to substantial completion of the



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construction work with respect to property, such construction work has ceased for a period of 30 days, in which case such Property shall be considered
Speculative Land until such time as construction has resumed; provided, further that, notwithstanding the foregoing definition, Properties qualifying as Highwoods Preserve Properties shall not be considered Properties Under
Development for purposes of this Agreement.



Quarterly Stock Repurchase/Joinder Statement means a certificate, prepared on a quarterly basis by the Principal Borrower, setting forth (a) the classes, number and value of any shares or other evidences of Capital Stock
of the Principal Borrower purchased, redeemed, retired or otherwise acquired for value by the Principal Borrower during the immediately preceding fiscal quarter, and the total amount paid for such Capital Stock, (b) detailed calculations for (i)
gross asset sales proceeds and Net Asset Sales Proceeds from (A) Asset Dispositions not involving Speculative Land and (B) Asset Dispositions of Speculative Land, in each case for the immediately preceding fiscal quarter, and (ii) the amounts
available, based on the calculations done in connection with clause (i), for the purchase, redemption, retirement or acquisition of Capital Stock of the Principal Borrower for such quarter pursuant to Section 7.11(l) hereof, (iii) a list of assets
sold during the preceding quarter to the extent that the proceeds from the sale of such assets are used in the calculations made in clause (ii) hereof, (iv) a projection of expected Asset Dispositions for the four fiscal quarters following the
quarter referenced in clauses (i) through (iii) on a quarter by quarter basis, and (v) a list of all Subsidiaries acquired or created during the immediately preceding fiscal quarter, together with a schedule of the assets owned by each such
Subsidiary.



Register shall
have the meaning given such term in Section 11.3(c).



Regulation O, T, U, or X means Regulation O, T, U or X, respectively, of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof.



REIT means a real estate investment trust
as defined in Sections 856-860 of the Code.



Release means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the environment (including the abandonment or discarding of barrels,
containers and other closed receptacles containing any Materials of Environmental Concern).



Reportable Event means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day
notice period has been waived.



Required Lenders means, at any time, Lenders which are then in compliance with their obligations hereunder (as determined by the Administrative Agent) and holding in the aggregate at least sixty-six and two-thirds percent
(66 2/3%) of (i) the Revolving Commitments (and Participation Interests therein) or (ii) if the Commitments have been terminated, the outstanding Loans and Participation Interests (including the Participation Interests of the Issuing Lender in any
Letters of Credit).



Requirement of
Law means, as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person or any of its material property is subject.



Responsible Officer means, (i) with respect to Highwoods Properties, Carman J. Liuzzo, Mack D. Pridgen, III, Ronald P.
Gibson and Edward J. Fritsch, and any other person certified by one of the foregoing individuals or by corporate resolution of Highwoods Properties to the Administrative Agent as authorized to sign the forms and notices required herein of Highwoods
Properties and (ii) with respect to the other Credit Parties, the general partner, president, chief operating officer, chief financial officer, secretary and each vice president thereof.



Restricted Payment means (i) any dividend or other distribution, direct or indirect, on
account of any shares of any class of Capital Stock of any Consolidated Party, now or hereafter outstanding (including any payment of dividends by Highwoods Properties necessary to retain its status as a REIT or to meet the distribution requirements
of Section 857 of the Code and any distributions by Highwoods Realty to



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Highwoods Properties necessary to allow Highwoods Properties to maintain its status as a REIT or to meet the distribution requirements of Section 857 of the
Code), (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of Capital Stock of any Consolidated Party, now or hereafter outstanding and (iii) any
payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of Capital Stock of any Consolidated Party, now or hereafter outstanding; provided, however, that
none of the following shall be deemed to be a Restricted Payment:



(A) any distribution by Highwoods Properties to the holders of its Capital Stock consisting of shares of Capital Stock or rights to acquire its Capital Stock;



(B) the redemption by Highwoods Realty of the Capital Stock
of Highwoods Realty upon the demand of a holder thereof as required by the Highwoods Realty Limited Partnership Agreement;



(C) the purchase by Highwoods Realty or Highwoods Properties of the Capital Stock of either of them in connection with the net or
cashless exercise of warrants or options;



(D) any distribution by a Consolidated Party to a Wholly Owned Subsidiary other than a Non-Guarantor Subsidiary;



(E) any distribution by a Subsidiary of Highwoods Realty to its parent or to Highwoods Realty;



(F) purchases, redemptions, retirements or other
acquisitions of the Capital Stock of the Principal Borrower in accordance with Section 7.11(l);



(G) amounts distributed in compliance with Section 7.14.



Revolving Commitment means, with respect to each Lender, the commitment of such Lender in
an aggregate principal amount at any time outstanding of up to such Lenders Commitment Percentage of the Revolving Committed Amount, (i) to make Revolving Loans in accordance with the provisions of Section 2.1(a), (ii) to purchase
Participation Interests in Letters of Credit in accordance with the provisions of Section 2.3(c), and (iii) to purchase Participation Interests in the Swingline Loans in accordance with the provisions of Section 2.4(b)(iii).



Revolving Committed Amount shall have the
meaning assigned to such term in Section 2.1(a).



Revolving Loans shall have the meaning assigned to such term in Section 2.1(a).



Revolving Note or Revolving Notes means the promissory notes of the Borrowers in favor of each of
the Lenders evidencing the Revolving Loans provided pursuant to Section 2.1(e), individually or collectively, as appropriate, as such promissory notes may be amended, modified, restated, supplemented, extended, renewed or replaced from time to time.



S&P means Standard
& Poors Ratings Group, a division of McGraw Hill, Inc., or any successor or assignee of the business of such division in the business of rating securities.



Scheduled Funded Debt Payments means, for a given period, the sum of (a) all scheduled
payments of principal on Funded Indebtedness for the Consolidated Parties on a consolidated basis for the applicable period ending on such date (including the principal component of payments due on Capital Leases during the applicable period),
plus (b) an amount equal to the aggregate of all scheduled payments of principal on Funded Indebtedness for each Minority Interest Entity for the applicable period (including the principal component of payments due on Capital Leases during
the applicable period) multiplied by the respective Minority Interest of each such entity, plus (c) the amount, if any, by which (i) the aggregate payments made by the Consolidated



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Parties during such period as a result of any obligations meeting the criteria set forth in clause (iv) of the definition of Guaranty Obligations
contained herein, exceeds (ii) $4,800,000; it being understood that Scheduled Funded Debt Payments shall not include any one-time bullet, lump sum or balloon payments due on the maturity date of Funded
Indebtedness.



Secured Debt
means, for any given calculation date, the total aggregate principal amount of any Indebtedness (other than Indebtedness incurred hereunder) of the Consolidated Parties, on a consolidated basis, that is (a) secured in any manner by any Lien or (b)
entitled to the benefit of a Negative Pledge. Indebtedness in respect of obligations under any Capitalized Lease shall not be deemed to be Secured Debt. For clarification purposes, (i) any unsecured guaranty given by any Consolidated Party of
secured indebtedness of a Person who is not a Consolidated Party constitutes Unsecured Debt of such Consolidated Party giving the guaranty, (ii) any unsecured guaranty given by any Consolidated Party of the secured indebtedness of another
Consolidated Party constitutes the Secured Debt of the Consolidated Party directly incurring the secured indebtedness and shall not be calculated as part of the Indebtedness (either Secured or Unsecured) of such Consolidated Party giving the
guaranty (except to the extent that the relevant calculation does not otherwise account for the Indebtedness of the Consolidated Party directly incurring the underlying secured indebtedness, in which case it shall constitute the Unsecured Debt of
the Consolidated Party giving the guaranty), (iii) any unsecured guaranty given by any Consolidated Party of the unsecured indebtedness of a Person who is not a Consolidated Party constitutes the Unsecured Debt of such Consolidated Party giving the
guaranty, (iv) any unsecured guaranty given by any Consolidated Party of the unsecured Indebtedness of another Consolidated Party constitutes the Unsecured Debt of the Consolidated Party directly incurring such Indebtedness and shall not be
calculated as part of the Indebtedness (either Secured or Unsecured) of such Consolidated Party giving the guaranty (except to the extent that the relevant calculation does not otherwise account for the Indebtedness of the Consolidated Party
directly incurring the underlying unsecured indebtedness, in which case it shall constitute the Unsecured Debt of the Consolidated Party giving the guaranty), (v) any secured guaranty given by any Consolidated Party of secured indebtedness of a
Person who is not a Consolidated Party constitutes Secured Debt of such Consolidated Party giving the guaranty, (vi) any secured guaranty given by any Consolidated Party of the secured indebtedness of another Consolidated Party constitutes the
Secured Debt of the Consolidated Party directly incurring the secured indebtedness and shall not be calculated as part of the Indebtedness (either Secured or Unsecured) of such Consolidated Party giving the guaranty (except to the extent that the
relevant calculation does not otherwise account for the Indebtedness of the Consolidated Party directly incurring the underlying secured indebtedness, in which case it shall constitute the Secured Debt of the Consolidated Party giving the guaranty),
(vii) any secured guaranty given by any Consolidated Party of the unsecured indebtedness of a Person who is not a Consolidated Party constitutes the Secured Debt of such Consolidated Party giving the guaranty, and (viii) any secured guaranty given
by any Consolidated Party of the unsecured Indebtedness of another Consolidated Party constitutes the Secured Debt of such Consolidated Party giving the guaranty and shall not be calculated as part of the Indebtedness (either Secured or Unsecured)
of the Consolidated Party directly incurring such Indebtedness (except to the extent that the relevant calculation does not otherwise account for the Indebtedness of such Consolidated Party giving the guaranty, in which case it shall constitute the
Unsecured Debt of the Consolidated Party directly incurring the underlying unsecured indebtedness).



Sole Book Manager shall have the meaning assigned to such term in the heading hereof, together with any successors or
assigns.



Sole Lead
Arranger shall have the meaning assigned to such term in the heading hereof, together with any successors or assigns.



Solvent or Solvency means, with respect to any Person as of a particular date, that on such date (i)
such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (ii) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Persons ability to pay as such debts and liabilities mature in their ordinary course, (iii) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a
transaction, for which such Persons property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which



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such Person is engaged or is to engage, (iv) the fair value of the property of such Person is greater than the total amount of liabilities, including,
without limitation, contingent liabilities, of such Person and (v) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become
absolute and matured. In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability.



Speculative Land means, at any given time, all land owned by any Borrower, any Consolidated Party or any unconsolidated affiliate thereof that has not been developed and is not currently being
developed.



Straight-Lining of
Rents means, with respect to any lease, the method by which rent received with respect to such lease is considered earned equally over the term of such lease despite the existence of (i) any free rent periods under such lease and (ii) any
rent step-up provisions under such lease.



Subsidiary means, as to any Person, (a) any corporation more than 50% of whose Capital Stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such
corporation (irrespective of whether or not at the time, any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through
Subsidiaries, and (b) any partnership, association, joint venture or other entity in which such Person directly or indirectly through Subsidiaries has more than 50% equity interest at any time.



Supermajority Lenders means at any time,
Lenders which are then in compliance with their obligations hereunder (as determined by the Administrative Agent) and holding in the aggregate at least seventy-five percent (75%) of (i) the Revolving Commitments (and Participation Interests therein)
or (ii) if the Commitments have been terminated, the outstanding Loans and Participation Interests (including the Participation Interests of the Issuing Lender in any Letters of Credit).



Swingline Commitment means the commitment of the Swingline Lender to make Swingline Loans
in an aggregate principal amount at any time outstanding of up to the Swingline Committed Amount.



Swingline Committed Amount shall have the meaning assigned to such term in Section 2.4(a).



Swingline Lender means Bank of America.



Swingline Loan shall have
the meaning assigned to such term in Section 2.4(a).



Swingline Note means the promissory note of the Borrowers in favor of the Swingline Lender evidencing the Swingline Loans provided pursuant to Section 2.4(d), as such promissory note may be amended, modified, restated,
supplemented, extended, renewed or replaced from time to time.



Syndication Agent shall have the meaning set forth in the first paragraph of this Credit Agreement, together with any successor or assigns.



Syndication Letter means that certain
syndication letter agreement dated as of March 24, 2003 by and among the Borrower, the Administrative Agent and the Arranger.



Synthetic Lease means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance
sheet financing product where such transaction is considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease for GAAP purposes.



TangibleNet Worth means, as of any date, the sum of (i) shareholders equity
or net worth of the Consolidated Parties on a consolidated basis, plus (ii) an amount equal to that portion attributable to Highwoods Realty of the line item minority interests, as shown on the consolidated balance sheet of
Highwoods



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Properties, less (iii) all intangible assets of the Consolidated Parties on a consolidated basis, in each case as determined in accordance with GAAP.



Taxes means such term as
is defined in Section 3.11.



Third
Debt Rating means the unsecured long term debt rating from a Third Rating Agency.



Third Rating Agency means a nationally recognized rating agency (other than S&P or Moodys) reasonably
satisfactory to the Administrative Agent.



TL/TA Ratio means, as of any date of calculation, the ratio of (i) Total Liabilities to (ii) Total Assets.



Total Assets means the sum of, without duplication, (a) the aggregate Annualized Adjusted NOI of all Properties except
Properties that are Speculative Land, Acquired Properties, Highwoods Preserve Properties, Properties Under Development or Transition Properties, divided by the Capitalization Rate; plus (b) the aggregate value of all Acquired Properties at
cost; plus (c) the aggregate value of all Speculative Land at cost; plus (d) the aggregate value of all Properties Under Development at cost; plus (e) the aggregate value of all Transition Properties at cost; plus (f)
cash and Cash Equivalents held by the Borrower or any Consolidated Party (including, without duplication, the pro rata share of any cash and Cash Equivalents held by any Minority Interest Entity which are attributable to any Minority Interests);
plus (g) Notes Receivable; plus (h) the aggregate value of the Highwoods Preserve Properties based on (i) prior to the date on which seventy-five percent (75.0%) of the gross leasable space contained in such Properties are occupied by
tenants under valid and effective leases, one hundred percent (100.0%) of the appraised value of such Properties (as taken from appraisals in form and substance acceptable to the Administrative Agent and issued by appraisers acceptable to the
Administrative Agent, in its reasonable discretion); and (ii) following such date, the aggregate Annualized Adjusted NOI of such Properties divided by the Capitalization Rate; provided, that, in each case, all of the above amounts not otherwise
adjusted to account for Outside Interests shall be adjusted to deduct therefrom the pro rata share of such amounts allocable to the Outside Interests.



Total Liabilities means the sum of (i) total liabilities of the Consolidated Parties on a consolidated basis, as
determined in accordance with GAAP, plus (ii) an amount equal to the aggregate of total liabilities, as determined in accordance with GAAP, of each Minority Interest Entity multiplied by the respective Minority Interest of each such entity
plus (iii) without duplication, the Indebtedness of the Consolidated Parties on a consolidated basis plus (iv) without duplication, the aggregate of Indebtedness of each Minority Interest Entity multiplied by the respective Minority
Interest of each such entity; provided, that in each case, all of the above amounts not otherwise adjusted to account for Outside Interests shall be adjusted to deduct therefrom the pro rata share of such amounts allocable to the Outside Interests
(except to the extent any Credit Party would be legally liable for the full amount of such liabilities).



Total Outstandings means, as of any calculation date, the aggregate Outstanding Amount of (i) all Loans; and (ii) all
LOC Obligations as of such date.



Transition Property means a Property which has ceased to be a Property Under Development pursuant to subsection (i) of the definition thereof; provided that such Property shall be considered a Transition Property until
such time as (i) seventy-five percent (75%) of the gross leasable space to be contained therein has been occupied by tenants under fully executed leases for an entire calendar quarter, in which case such Property shall thereafter at all times be
considered only a Property (and not a Transition Property, Property Under Development, CIP Property, Speculative Land or Acquired Property) or (ii) less than seventy-five percent (75%) of the gross leasable space to be contained therein
is occupied by tenants under fully executed leases, in which case such Property shall be considered a Property Under Development and shall again be subject to the provisions set forth in the definition of such term; provided, however
that, notwithstanding the foregoing definition, Properties qualifying as Highwoods Preserve Properties shall not be considered Transition Properties for purposes of this Credit Agreement.



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Unencumbered Assets means the sum of, without duplication:



(a) the aggregate Annualized Adjusted NOI of all
Properties wholly owned directly by the Borrowers or any Wholly Owned Subsidiary which is a Credit Party except Properties that are Speculative Land, Acquired Properties, Highwoods Preserve Properties, Properties Under Development or Transition
Properties, (i) that are operating and generate revenues from third parties and (ii) that are not subject to any Liens; divided by the Capitalization Rate; plus



(b) the aggregate value at cost of all Acquired Properties wholly owned directly by the Borrowers or any
Wholly Owned Subsidiary which is a Credit Party (i) that are operating and generate revenues from third parties and (ii) that are not subject to any Liens; plus



(c) the aggregate value at cost of all Properties Under Development wholly owned directly by the Borrowers
or any Wholly Owned Subsidiary which is a Credit Party that do not qualify as CIP Properties that are not subject to any Liens; plus



(d) the aggregate value at cost of all Transition Properties wholly owned directly by the Borrowers or any Wholly Owned Subsidiary which
is a Credit Party that are not subject to any Liens; plus



(e) the aggregate value at cost of all CIP Properties wholly owned directly by the Borrowers or any Wholly Owned Subsidiary which is a Credit Party that are not subject to any Liens; provided, however, that if the
aggregate value of such CIP Properties exceeds five percent (5%) of the aggregate amount calculated under subsections (a), (b), (c) and (d) of this definition, the value of such CIP Properties in excess of five percent (5%) of the aggregate amount
calculated under such subsections (a), (b), (c), (d) and (g) of this definition shall be excluded in the determination of Unencumbered Assets hereunder; plus



(f) the aggregate value of the Highwoods Preserve Properties based on (i) prior to the date on which
seventy-five percent (75.0%) of the gross leasable space contained in such Properties are occupied by tenants under valid and effective leases, one hundred percent (100.0%) of the appraised value of such Properties (as taken from appraisals in form
and substance acceptable to the Administrative Agent and issued by appraisers acceptable to the Administrative Agent, in its reasonable discretion); and (ii) following such date, the aggregate Annualized Adjusted NOI of such Properties, divided by
the Capitalization Rate;plus



(g) cash
and Cash Equivalents held directly by the Borrowers or any Wholly Owned Subsidiary which is a Credit Party;



in each case to the extent such Properties and other assets are not subject to any Liens. Notwithstanding the foregoing, if the aggregate
value of the Properties Under Development, Transition Properties and CIP Properties calculated pursuant to subsections (c), (d) and (e) of this definition exceeds twenty percent (20%) of the aggregate amount calculated under subsections (a), (b),
(c), (d), (e) and (g) of this definition, then the amount of such aggregate value in excess of such twenty percent (20%) shall be excluded in the determination of Unencumbered Assets hereunder.



For purposes of this definition, a Property being acquired
by a Borrower or a Wholly Owned Subsidiary using the safe harbor parking or reverse exchange provisions of IRS Rev. Proc. 2000-37 will be considered to be wholly owned directly by a Borrower or a Wholly Owned Subsidiary
notwithstanding the fact that legal title to such Property is vested in a third party so long as (i) such Borrower or Wholly Owned Subsidiary, as the case may be, has an absolute right to acquire such Property from such third party, (ii) any note
receivable and any cash balance still to be paid held by such Borrower or Wholly Owned Subsidiary with respect to any credit extended by such Person to the third party holding



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legal title to the applicable Property is not included in the Total Assets of such Borrower or Wholly Owned Subsidiary and (iii) to the extent such Property
is not the subject of a so-called reverse 1031 exchange transaction pursuant to section 1031 of the Code and IRS Rev. Proc. 2000-37 within the time limits established pursuant thereto, such Property will become the property of the
applicable Borrower or Wholly Owned Subsidiary without the delivery by such Person of additional consideration therefor.



Unfunded Pension Liability means the excess of a Pension Plans benefit liabilities under Section 4001(a)(16) of
ERISA, over the current value of that Pension Plans assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year.



Unsecured Debt means, for any given
calculation date, the total aggregate principal amount of Indebtedness of the Consolidated Parties, on a consolidated basis, that is not Secured Debt, including all Indebtedness in respect of obligations under any Capitalized Leases; it being
understood that Unsecured Debt shall not include principal amounts available to be drawn (but not drawn) under outstanding commitments. For clarification purposes, (i) any unsecured guaranty given by any Consolidated Party of secured indebtedness of
a Person who is not a Consolidated Party constitutes Unsecured Debt of such Consolidated Party giving the guaranty, (ii) any unsecured guaranty given by any Consolidated Party of the secured indebtedness of another Consolidated Party constitutes the
Secured Debt of the Consolidated Party directly incurring the secured indebtedness and shall not be calculated as part of the Indebtedness (either Secured or Unsecured) of such Consolidated Party giving the guaranty (except to the extent that the
relevant calculation does not otherwise account for the Indebtedness of the Consolidated Party directly incurring the underlying secured indebtedness, in which case it shall constitute the Unsecured Debt of the Consolidated Party giving the
guaranty), (iii) any unsecured guaranty given by any Consolidated Party of the unsecured indebtedness of a Person who is not a Consolidated Party constitutes the Unsecured Debt of such Consolidated Party giving the guaranty, (iv) any unsecured
guaranty given by any Consolidated Party of the unsecured Indebtedness of another Consolidated Party constitutes the Unsecured Debt of the Consolidated Party directly incurring such Indebtedness and shall not be calculated as part of the
Indebtedness (either Secured or Unsecured) of such Consolidated Party giving the guaranty (except to the extent that the relevant calculation does not otherwise account for the Indebtedness of the Consolidated Party directly incurring the underlying
unsecured indebtedness, in which case it shall constitute the Unsecured Debt of the Consolidated Party giving the guaranty), (v) any secured guaranty given by any Consolidated Party of secured indebtedness of a Person who is not a Consolidated Party
constitutes Secured Debt of such Consolidated Party giving the guaranty, (vi) any secured guaranty given by any Consolidated Party of the secured indebtedness of another Consolidated Party constitutes the Secured Debt of the Consolidated Party
directly incurring the secured indebtedness and shall not be calculated as part of the Indebtedness (either Secured or Unsecured) of such Consolidated Party giving the guaranty (except to the extent that the relevant calculation does not otherwise
account for the Indebtedness of the Consolidated Party directly incurring the underlying secured indebtedness, in which case it shall constitute the Secured Debt of the Consolidated Party giving the guaranty), (vii) any secured guaranty given by any
Consolidated Party of the unsecured indebtedness of a Person who is not a Consolidated Party constitutes the Secured Debt of such Consolidated Party giving the guaranty, and (viii) any secured guaranty given by any Consolidated Party of the
unsecured Indebtedness of another Consolidated Party constitutes the Secured Debt of such Consolidated Party giving the guaranty and shall not be calculated as part of the Indebtedness (either Secured or Unsecured) of the Consolidated Party directly
incurring such Indebtedness (except to the extent that the relevant calculation does not otherwise account for the Indebtedness of such Consolidated Party giving the guaranty, in which case it shall constitute the Unsecured Debt of the Consolidated
Party directly incurring the underlying unsecured indebtedness). For purposes of calculating the financial covenants contained herein, obligations of any Consolidated Party pursuant to the terms of any Letter of Credit shall be treated in the same
manner as a guaranty to the extent the purpose of such Letter of Credit is to credit enhance other debt of any Consolidated Party. Further, notwithstanding anything to the contrary contained in the foregoing, if an obligation of the Consolidated
Parties is included in the calculation of the Indebtedness of the Consolidated Parties solely as a result of such obligations being deemed a Guaranty Obligation pursuant to clause (iv) of the definition of Guaranty Obligations
contained herein, such obligation



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shall not be included in the determination of the Consolidated Parties Unsecured Debt (A) if the Administrative Agent has received evidence that the
applicable Consolidated Party is maintaining adequate and reasonable cash reserves (as calculated through the use of a methodology acceptable to the Administrative Agent in its discretion) with respect to such obligation in segregated accounts
which, during the existence of such obligation, will be accessible only for the purpose of satisfying such obligation in the event of a Consolidated Partys being subject to liability therefor; or (B) to the extent the aggregate amount of the
obligations excluded pursuant to this sentence (exclusive of obligations excluded pursuant to clause (A) above) is, as of any date of calculation, equal or less than the lesser of (1) $50,000,000.00 and (2) 2.5% of Unencumbered Assets as of such
date.



Unsecured Long Term Debt
Rating means with respect to Highwoods Properties (i) at such time that Highwoods Properties maintains an unsecured long term debt rating from each of Moodys, S&P and the Third Rating Agency, the lower of the two highest of such
publicly announced ratings for the unsecured long term debt rating of Highwoods Properties, (ii) at such time that Highwoods Properties maintains an unsecured long term debt rating from only two (2) of the above-referenced agencies (one of which
must be Moodys or S&P), the lower of the publicly announced ratings from each such agency for the unsecured long term debt rating of Highwoods Properties or (iii) at such time that Highwoods Properties fails to maintain an unsecured long
term debt rating from at least two (2) of the above-referenced agencies (one of which must be Moodys or S&P), the unsecured long term debt rating equivalent to BB+ from S&P and Ba1 from Moodys.



Voting Stock means, with respect to any
Person, Capital Stock issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to
vote has been suspended by the happening of such a contingency.



Wholly Owned Subsidiary means, (a) with respect to Highwoods Realty, any direct or indirect Subsidiary of Highwoods Realty 100% of whose Voting Stock is owned by (i) Highwoods Realty, (ii) Highwoods
Realty and Highwoods Properties, or (iii) Highwoods Realty and one or more of Highwoods Properties or another Wholly Owned Subsidiary of Highwoods Realty and (b) with respect to Highwoods Properties, (i) Highwoods Realty, (ii) any Wholly Owned
Subsidiary of Highwoods Realty, or (iii) any direct or indirect Subsidiary of Highwoods Properties 100% of whose Voting Stock is owned by Highwoods Properties or by one or more of Highwoods Realty and a Wholly Owned Subsidiary of Highwoods Realty.



2000 Credit Agreement
shall have the meaning given that term in the first paragraph of this Agreement.



1.2 Computation of Time Periods.



For purposes of computation of periods of time hereunder, the word from means from and including and the words to and until each mean to but excluding.



1.3 Accounting Terms.



Except as otherwise expressly provided herein, all accounting terms used
herein shall be interpreted, and all financial statements and certificates and reports as to financial matters required to be delivered to the Lenders hereunder shall be prepared, in accordance with GAAP applied on a consistent basis. All
calculations made for the purposes of determining compliance with this Credit Agreement shall (except as otherwise expressly provided herein) be made by application of GAAP applied on a basis consistent with the most recent annual or quarterly
financial statements delivered pursuant to Section 7.1 (or, prior to the delivery of the first financial statements pursuant to Section 7.1, consistent with the financial statements delivered as of
,  pursuant to the terms of the 2000 Credit Agreement for the calendar quarter ending on December 31, 2002);
provided, however, if (a) the Principal Borrower shall object to determining such compliance on such basis at the time of delivery of such financial statements due to any change in GAAP or the rules promulgated with respect thereto or
(b) the Administrative Agent or the Required Lenders shall so object in writing within 30 days after delivery of such financial statements, then such calculations shall be made on a



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basis consistent with the most recent financial statements delivered by the Principal Borrower to the Lenders as to which no such objection shall have been
made.



1.4 Calculation of Values.



To the extent any calculation of the value of any Property contained herein
is based on the appraised value of such Property, the Administrative Agent shall have the right, in its discretion (or at the request of the Required Lenders) to obtain, in addition to any appraisals obtained on or prior to the date hereof,
additional appraisals with respect to each such Property not more than once every twelve (12) calendar months after the date hereof, and such cost of such additional appraisals shall be paid by Borrower to the Administrative Agent on demand pursuant
to Section 11.5 hereof.



SECTION 2



CREDIT FACILITIES



2.1 Revolving Loans.



(a) Revolving Commitment. Subject to the terms and
conditions hereof and in reliance upon the representations and warranties set forth herein, each Lender severally agrees to make available to the Borrowers such Lenders Commitment Percentage of revolving credit loans requested by the Borrowers
in Dollars (Revolving Loans) from time to time from the Closing Date until the Maturity Date, or such earlier date as the Revolving Commitments shall have been terminated as provided herein for the purposes hereinafter set forth;
provided, however, that the sum of the aggregate principal amount of outstanding Revolving Loans shall not exceed TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000) (as such aggregate maximum amount may be reduced from time to
time as provided in Section 3.4, the Revolving Committed Amount); provided, further, (i) with regard to each Lender individually, such Lenders outstanding Revolving Loans shall not exceed such Lenders
Commitment Percentage of the Revolving Committed Amount, and (ii) with regard to the Lenders collectively, the aggregate principal amount of outstanding Revolving Loans plus the aggregate principal amount of outstanding Swingline Loans
plus LOC Obligations outstanding shall not exceed the Revolving Committed Amount. Revolving Loans may consist of Base Rate Loans or Eurodollar Loans, or a combination thereof, as the Borrowers may request, and may be repaid and reborrowed in
accordance with the provisions hereof; provided, however, that no more than ten (10) Eurodollar Loans shall be outstanding hereunder at any time. For purposes hereof, Eurodollar Loans with different Interest Periods shall be considered
as separate Eurodollar Loans, even if they begin on the same date, although borrowings, extensions and conversions may, in accordance with the provisions hereof, be combined at the end of existing Interest Periods to constitute a new Eurodollar Loan
with a single Interest Period. Revolving Loans hereunder may be repaid and reborrowed in accordance with the provisions hereof.



(b) Revolving Loan Borrowings.



(i) Notice of Borrowing. One or more of the Borrowers shall request a Revolving Loan borrowing by delivery of a Notice of
Borrowing, together with the officers certificate required by Section 5.2(e), to the Administrative Agent not later than 11:00 A.M. (Charlotte, North Carolina time) on the Business Day prior to the date of the requested borrowing in the case
of Base Rate Loans, and on the third Business Day prior to the date of the requested borrowing in the case of Eurodollar Loans. Each such request for borrowing shall be irrevocable and shall specify (A) that a Revolving Loan is requested, (B) the
date of the requested borrowing (which shall be a Business Day), (C) the aggregate principal amount to be borrowed, (D) whether the borrowing shall be comprised of Base Rate Loans, Eurodollar Loans or a combination thereof, and if Eurodollar Loans
are requested, the Interest Period(s) therefor and (E) the purpose for which the requested Revolving Loans will be used by the applicable Borrower. If the applicable Borrower shall fail to specify in any such Notice of Borrowing the type of
Revolving Loan requested, then such notice shall be deemed to be a request for a Base Rate Loan hereunder. The Administrative Agent shall give notice to each Lender promptly



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upon receipt of each Notice of Borrowing pursuant to this Section 2.1(b)(i), the contents thereof and each such Lenders share of any borrowing to be
made pursuant thereto.



(ii) Minimum
Amounts. Except as provided in Sections 2.3(d) and 2.3(e), each Eurodollar Loan that is a Revolving Loan shall be in a minimum aggregate principal amount of $5,000,000 and integral multiples of $500,000 in excess thereof (or the remaining amount
of the Revolving Committed Amount, if less), and each Base Rate Loan that in a Revolving Loan shall be in a minimum aggregate principal amount of $1,000,000 and integral multiples of $500,000 in excess thereof (or the remaining amount of the
Revolving Committed Amount, if less).



(iii)
Advances. Each Lender will make its Commitment Percentage of each Revolving Loan borrowing available to the Administrative Agent for the account of one or more of the Borrowers as specified in Section 3.15(a), or in such other manner as the
Administrative Agent may specify in writing, by 1:00 P.M. (Charlotte, North Carolina time) on the date specified in the applicable Notice of Borrowing in Dollars and in funds immediately available to the Administrative Agent. Such borrowing will
then be made available to one or more of the Borrowers by the Administrative Agent by crediting the account of the applicable Borrower on the books of such office with the aggregate of the amounts made available to the Administrative Agent by the
Lenders and in like funds as received by the Administrative Agent.



(c) Repayment. The principal amount of all Revolving Loans shall be due and payable in full on the Maturity Date, unless accelerated sooner pursuant to Section 9.2.



(d) Interest. Subject to the provisions of Section
3.1,



(i) Base Rate Loans. During such
periods as Revolving Loans shall be comprised in whole or in part of Base Rate Loans, such Base Rate Loans shall bear interest at a per annum rate equal to the Adjusted Base Rate;



(ii) Eurodollar Loans. During such periods as Revolving Loans shall be comprised in whole or in part
of Eurodollar Loans, such Eurodollar Loans shall bear interest at a per annum rate equal to the Adjusted Eurodollar Rate.



Interest on Revolving Loans shall be payable in arrears on each applicable Interest Payment Date (or at such other times as may be specified herein). The
Administrative Agent shall endeavor in the ordinary course of business to give notice to each Lender promptly upon any change in the Applicable Percentage.



(e) Revolving Notes. The Revolving Loans made by each Lender shall be evidenced by a duly executed promissory note of the Borrowers
to such Lender in substantially the form of Exhibit 2.1(e).



2.2 Reserved.



2.3 Letter of
Credit Subfacility.



(a)
Issuance. Subject to the terms and conditions hereof and of the LOC Documents, if any, and any other terms and conditions which the Issuing Lender may reasonably require and in reliance upon the representations and warranties set forth
herein, the Issuing Lender agrees to issue, and each Lender severally agrees to participate in the issuance by the Issuing Lender of, Letters of Credit in Dollars from time to time from the Closing Date until the date thirty (30) days prior to the
Maturity Date as a Borrower may request, in a written form acceptable to the Issuing Lender (such form must be signed by a Responsible Officer and must include a representation and warranty of the correctness of the matters specified in subsections
(b), (c), (d), (f) and (g) of Sections 5.2); provided, however, that (i) the LOC Obligations outstanding shall not at any time exceed TWENTY MILLION DOLLARS ($20,000,000) (the LOC Committed Amount) and (ii)
the sum of the aggregate principal amount of outstanding Revolving Loans plus the aggregate principal amount of outstanding Swingline Loans plus LOC Obligations outstanding shall not at any time exceed the aggregate Revolving Committed
Amount. No Letter of Credit shall (x) have an original expiry date more than one year



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from the date of issuance or (y) as originally issued or as extended, have an expiry date extending beyond the Maturity Date. Each Letter of Credit shall
comply with the related LOC Documents. The issuance and expiry dates of each Letter of Credit shall be a Business Day.



(b) Notice and Reports. The request for the issuance of a Letter of Credit shall be submitted by a Borrower to the Issuing Lender
at least five (5) Business Days prior to the requested date of issuance and shall be accompanied by the officers certificate required by Section 5.2(e). The Issuing Lender will upon the issuance of a Letter of Credit and at least quarterly and
more frequently upon request, disseminate to each of the Lenders a detailed report specifying the Letters of Credit which are then issued and outstanding and any activity with respect thereto which may have occurred since the date of the prior
report, and including therein, among other things, the beneficiary, the face amount and the expiry date, as well as any payment or expirations which may have occurred.



(c) Participation. Each Lender, with respect to the Existing Letters of Credit, hereby purchases a
Participation Interest in such Existing Letters of Credit, and with respect to the Letters of Credit issued on or after the Closing Date, upon issuance of a Letter of Credit, shall be deemed to have purchased without recourse a Participation
Interest from the Issuing Lender in such Letter of Credit and the obligations arising thereunder and any collateral relating thereto, in each case in an amount equal to its Pro Rata Share of the obligations under such Letter of Credit (based on the
respective Commitment Percentages of the Lenders) and shall absolutely, unconditionally and irrevocably assume and be obligated to pay to the Issuing Lender and discharge when due, its Pro Rata Share of the obligations arising under such Letter of
Credit. Notwithstanding the preceding sentence, in the event that the Issuing Lender issues a Letter of Credit hereunder when the officers of the Issuing Lender directly involved with the credit facilities available to the Borrowers under this
Credit Agreement have actual knowledge that a monetary Event of Default or material Event of Default (which, for the avoidance of doubt shall include any violation of any provisions of Section 7.11) has occurred and is continuing, the Lenders shall
have the option but not the obligation to pay to the Issuing Lender their Pro Rata Share of the obligations arising under such Letter of Credit as contemplated herein. Without limiting the scope and nature of each Lenders Participation
Interest in any Letter of Credit, to the extent that the Issuing Lender has not been reimbursed as required hereunder or under any such Letter of Credit, each such Lender shall pay to the Issuing Lender its Pro Rata Share of such unreimbursed
drawing in same day funds on the day of notification by the Issuing Lender of an unreimbursed drawing pursuant to the provisions of subsection (d) below. The obligation of each Lender to so reimburse the Issuing Lender shall be absolute and
unconditional and shall not be affected by the occurrence of a Default, an Event of Default or any other occurrence or event. Any such reimbursement shall not relieve or otherwise impair the obligation of the Borrowers to reimburse the Issuing
Lender under any Letter of Credit, together with interest as hereinafter provided.



(d) Reimbursement. In the event of any drawing under any Letter of Credit, the Issuing Lender will promptly notify the Borrower
that was the applicant for such Letter of Credit. Unless such Borrower shall immediately notify the Issuing Lender that such Borrower intends to otherwise reimburse the Issuing Lender for such drawing, such Borrower shall be deemed to have requested
that the Lenders make a Revolving Loan in the amount of the drawing as provided in subsection (e) below on the related Letter of Credit, the proceeds of which will be used to satisfy the related reimbursement obligations. Each Borrower that is an
applicant under a Letter of Credit promises to reimburse the Issuing Lender on the day of drawing under any Letter of Credit (either with the proceeds of a Revolving Loan obtained hereunder or otherwise) in same day funds. If such Borrower shall
fail to reimburse the Issuing Lender as provided hereinabove, the unreimbursed amount of such drawing shall bear interest at a per annum rate equal to the Adjusted Base Rate plus 2%. Such Borrowers reimbursement obligations hereunder shall be
absolute and unconditional under all circumstances irrespective of any rights of setoff, counterclaim or defense to payment such Borrower may claim or have against the Issuing Lender, the Administrative Agent, the Lenders, the beneficiary of the
Letter of Credit drawn upon or any other Person, including without limitation any defense based on any failure of such Borrower or any other Credit Party to receive consideration or the legality, validity, regularity or unenforceability of the
Letter of Credit. The Issuing Lender will promptly notify the other Lenders of the amount of any unreimbursed drawing and each Lender shall promptly pay to the Administrative Agent for the account of the Issuing Lender in Dollars and in immediately
available funds, the amount of such Lenders Pro Rata Share of such unreimbursed drawing. Such payment shall be made on the day such notice is received by such Lender from the Issuing Lender if such notice is received at or before 2:00 P.M.
(Charlotte, North Carolina time) otherwise such



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payment shall be made at or before 12:00 Noon (Charlotte, North Carolina time) on the Business Day next succeeding the day such notice is received. If such
Lender does not pay such amount to the Issuing Lender in full upon such request, such Lender shall, on demand, pay to the Administrative Agent for the account of the Issuing Lender interest on the unpaid amount during the period from the date of
such drawing until such Lender pays such amount to the Issuing Lender in full at a rate per annum equal to, if paid within two (2) Business Days of the date that such Lender is required to make payments of such amount pursuant to the preceding
sentence, the Federal Funds Rate and thereafter at a rate equal to the Base Rate. Each Lenders obligation to make such payment to the Issuing Lender, and the right of the Issuing Lender to receive the same, shall be absolute and unconditional,
shall not be affected by any circumstance whatsoever and without regard to the termination of this Credit Agreement or the Commitments hereunder, the existence of a Default or Event of Default or the acceleration of the obligations of any Borrower
hereunder and shall be made without any offset, abatement, withholding or reduction whatsoever. Simultaneously with the making of each such payment by a Lender to the Issuing Lender, such Lender shall, automatically and without any further action on
the part of the Issuing Lender or such Lender, acquire a Participation Interest in an amount equal to such payment (excluding the portion of such payment constituting interest owing to the Issuing Lender) in the related unreimbursed drawing portion
of the LOC Obligation and in the interest thereon and in the related LOC Documents, and shall have a claim against such Borrower and the other Credit Parties with respect thereto.



(e) Repayment with Revolving Loans. On any day on which any Borrower shall have requested, or been
deemed to have requested, a Revolving Loan advance to reimburse a drawing under a Letter of Credit, the Administrative Agent shall give notice to the Lenders that a Revolving Loan has been requested or deemed requested by such Borrower to be made in
connection with a drawing under a Letter of Credit, in which case a Revolving Loan advance comprised of Base Rate Loans (or Eurodollar Loans to the extent such Borrower has complied with the procedures of Section 2.1(b)(i) with respect thereto)
shall be immediately made to such Borrower by all Lenders (notwithstanding any termination of the Commitments pursuant to Section 9.2) pro ratabased on the respective Commitment Percentages of the Lenders (determined before giving
effect to any termination of the Commitments pursuant to Section 9.2) and the proceeds thereof shall be paid directly to the Issuing Lender for application to the respective LOC Obligations. Each such Lender hereby irrevocably agrees to make its Pro
Rata Share of each such Revolving Loan immediately upon any such request or deemed request in the amount, in the manner and on the date specified in the preceding sentence notwithstanding (i) the amount of such borrowing may not comply with
the minimum amount for advances of Revolving Loans otherwise required hereunder, (ii) whether any conditions specified in Section 5.2 are then satisfied, (iii) whether a Default or an Event of Default then exists, (iv) failure for any such request
or deemed request for Revolving Loan to be made by the time otherwise required hereunder, (v) whether the date of such borrowing is a date on which Revolving Loans are otherwise permitted to be made hereunder or (vi) any termination of the
Commitments relating thereto immediately prior to or contemporaneously with such borrowing. In the event that any Revolving Loan cannot for any reason be made on the date otherwise required above (including, without limitation, as a result of the
commencement of a proceeding under the Bankruptcy Code with respect to any one of the Borrowers or any Credit Party), then each such Lender hereby agrees that it shall forthwith purchase (as of the date such borrowing would otherwise have occurred,
but adjusted for any payments received from the Borrowers on or after such date and prior to such purchase) from the Issuing Lender such Participation Interests in the outstanding LOC Obligations as shall be necessary to cause each such Lender to
share in such LOC Obligations ratably (based upon the respective Commitment Percentages of the Lenders (determined before giving effect to any termination of the Commitments pursuant to Section 9.2)), provided that at the time any purchase of
Participation Interests pursuant to this sentence is actually made, the purchasing Lender shall be required to pay to the Issuing Lender, to the extent not paid to the Issuer by the Borrowers in accordance with the terms of subsection (d) above,
interest on the principal amount of Participation Interests purchased for each day from and including the day upon which such borrowing would otherwise have occurred to but excluding the date of payment for such Participation Interests, at the rate
equal to, if paid within two (2) Business Days of the date of the Revolving Loan advance, the Federal Funds Rate, and thereafter at a rate equal to the Base Rate.



(f) Renewal, Extension. The renewal or extension of any Letter of Credit shall, for purposes hereof,
be treated in all respects the same as the issuance of a new Letter of Credit hereunder.



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(g) Uniform Customs and Practices. The Issuing Lender may have the Letters of
Credit be subject to The Uniform Customs and Practice for Documentary Credits, as published as of the date of issue by the International Chamber of Commerce (the UCP), in which case the UCP may be incorporated therein and deemed
in all respects to be a part thereof.



(h)
Indemnification; Nature of Issuing Lenders Duties.



(i) In addition to its other obligations under this Section 2.3, each Borrower that is an applicant with respect to a Letter of Credit hereby agrees to pay, and protect, indemnify and save each Lender harmless from
and against, any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys fees) that such Lender may incur or be subject to as a consequence, direct or indirect, of (A) the issuance of
any Letter of Credit or (B) the failure of such Lender to honor a drawing under a Letter of Credit as a result of any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority
(all such acts or omissions, herein called Government Acts).



(ii) As between the Borrower that is the applicant for a Letter of Credit and the Lenders (including the Issuing Lender), such Borrower shall assume all risks of the acts, omissions or misuse of any Letter of Credit
by the beneficiary thereof. No Lender (including the Issuing Lender) shall be responsible: (A) for the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for
and issuance of any Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (B) for the validity or sufficiency of any instrument transferring or assigning or purporting
to transfer or assign any Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, that may prove to be invalid or ineffective for any reason; (C) for errors, omissions, interruptions or delays in transmission
or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (D) for any loss or delay in the transmission or otherwise of any document required in order to make a drawing under a Letter of Credit or
of the proceeds thereof; and (E) for any consequences arising from causes beyond the control of such Lender, including, without limitation, any Government Acts. None of the above shall affect, impair, or prevent the vesting of the Issuing
Lenders rights or powers hereunder.



(iii) In furtherance and extension and not in limitation of the specific provisions hereinabove set forth, any action taken or omitted by any Lender (including the Issuing Lender), under or in connection with any Letter of Credit or the
related certificates, if taken or omitted in good faith, shall not put such Lender under any resulting liability to such Borrower or any other Credit Party. It is the intention of the parties that this Credit Agreement shall be construed and applied
to protect and indemnify each Lender (including the Issuing Lender) against any and all risks involved in the issuance of the Letters of Credit, all of which risks are hereby assumed by the Borrowers (on behalf of itself and each of the other Credit
Parties), including, without limitation, any and all Government Acts. No Lender (including the Issuing Lender) shall, in any way, be liable for any failure by such Lender or anyone else to pay any drawing under any Letter of Credit as a result of
any Government Acts or any other cause beyond the control of such Lender.



(iv) Nothing in this subsection (h) is intended to limit the reimbursement obligations of the Borrowers contained in subsection (d) above. The obligations of the Borrowers under this subsection (h) shall survive the
termination of this Credit Agreement. No act or omissions of any current or prior beneficiary of a Letter of Credit shall in any way affect or impair the rights of the Lenders (including the Issuing Lender) to enforce any right, power or benefit
under this Credit Agreement.



(v)
Notwithstanding anything to the contrary contained in this subsection (h), the Borrowers shall have no obligation to indemnify any Lender (including the Issuing Lender) in respect of any liability incurred by such Lender (A) arising solely out of
the gross negligence or willful misconduct of such Lender, as determined by a court of competent jurisdiction, or (B) caused by such Lenders failure to pay under any Letter of Credit after presentation to it of a request strictly



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complying with the terms and conditions of such Letter of Credit, as determined by a court of competent jurisdiction, unless such payment is prohibited by
any law, regulation, court order or decree.



(i) Responsibility of Issuing Lender. It is expressly understood and agreed that the obligations of the Issuing Lender hereunder to the Lenders are only those expressly set forth in this Credit Agreement and that the Issuing Lender
shall be entitled to assume that the conditions precedent set forth in Section 5.2 have been satisfied unless it shall have acquired actual knowledge that any such condition precedent has not been satisfied; provided, however, that
nothing set forth in this Section 2.3 shall be deemed to prejudice the right of any Lender to recover from the Issuing Lender any amounts made available by such Lender to the Issuing Lender pursuant to this Section 2.3 in the event that it is
determined by a court of competent jurisdiction that the payment with respect to a Letter of Credit constituted gross negligence or willful misconduct on the part of the Issuing Lender.



(j) Conflict with LOC Documents. In the event of any conflict between this Credit Agreement and any
LOC Document (including any letter of credit application), this Credit Agreement shall control.



2.4 Swingline Loan Subfacility.



(a) Swingline Commitment. Subject to the terms and conditions hereof and in reliance upon the representations and warranties set
forth herein, the Swingline Lender, in its individual capacity, agrees to make certain revolving credit loans requested by the Borrowers in Dollars to the Borrowers (each a Swingline Loan and, collectively, the Swingline
Loans) from time to time from the Closing Date until the Maturity Date for the purposes hereinafter set forth; provided, however, (i) the aggregate principal amount of Swingline Loans outstanding at any time shall not exceed
TWENTY-FIVE MILLION DOLLARS($25,000,000) (the Swingline Committed Amount), and (ii) the aggregate principal amount of outstanding Revolving Loans plus the aggregate principal amount of outstanding Swingline
Loans plus LOC Obligations outstanding shall not exceed the Revolving Committed Amount. Swingline Loans hereunder shall be made as Base Rate Loans, shall bear interest as set forth in Section 2.4(c)(i) hereof, and may be repaid and reborrowed
in accordance with the provisions hereof.



(b)
Swingline Loan Advances.



(i)
Notices; Disbursement. Whenever one or more of the Borrowers desires a Swingline Loan advance hereunder it shall deliver a Notice of Borrowing, together with the officers certificate required by Section 5.2(e), to the Swingline Lender
not later than 11:00 A.M. (Charlotte, North Carolina time) on the Business Day of the requested Swingline Loan advance. Each such notice shall be irrevocable and shall specify (A) that a Swingline Loan advance is requested, (B) the date of the
requested Swingline Loan advance (which shall be a Business Day), (C) the principal amount of the Swingline Loan advance requested, (D) the purpose for which the requested Swingline Loan will be used by the applicable Borrower and (E) that the
representations and warranties made by the Credit Parties in any Credit Document are true and correct in all material respects at and as if made on the date hereof except to the extent they expressly relate to an earlier date. Each Swingline Loan
shall be made as a Base Rate Loan and shall have such maturity date (which maturity date shall not be a date more than three (3) Business Days from the date of advance thereof) as the Swingline Lender and the applicable Borrower shall agree upon
receipt by the Swingline Lender of any such notice from the applicable Borrower. The Swingline Lender shall initiate the transfer of funds representing the Swingline Loan advance to the applicable Borrower by 3:00 P.M. (Charlotte, North Carolina
time) on the Business Day of the requested borrowing.



(ii) Minimum Amounts. Each Swingline Loan advance shall be in a minimum principal amount of $1,000,000 and in integral multiples of $500,000 in excess thereof (or the remaining amount of the Swingline Committed
Amount, if less).



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(iii) Repayment of Swingline Loans. The principal amount of all Swingline Loans
shall be due and payable on the earlier of (A) the maturity date agreed to by the Swingline Lender and the applicable Borrower with respect to such Loan (which maturity date shall not be a date more than three (3) Business Days from the date of
advance thereof) and (B) the Maturity Date, at which time the Borrowers shall be deemed to have requested a Revolving Loan borrowing (which deemed request for a Revolving Loan borrowing shall constitute a representation and warranty by the Credit
Parties of the correctness of the matters specified in subsections (b), (c), (d), (f) and (g) of Section 5.2) in the amount of the maturing Swingline Loan, the proceeds of which will be used to repay such Swingline Loan. The Swingline Lender may, at
any time, in its sole discretion, by written notice to the Principal Borrower and the Lenders, demand repayment of its Swingline Loans by way of a Revolving Loan advance, in which case the Borrowers shall be deemed to have requested a Revolving Loan
advance (which deemed request for a Revolving Loan borrowing shall constitute a representation and warranty by the Credit Parties of the correctness of the matters specified in subsections (b), (c), (d), (f) and (g) of Section 5.2) comprised solely
of Base Rate Loans in the amount of such Swingline Loans; provided, however, that any such demand shall be deemed to have been given one Business Day prior to the Maturity Date and on the date of the occurrence of any Event of Default
described in Section 9.1 and upon acceleration of the indebtedness hereunder and the exercise of remedies in accordance with the provisions of Section 9.2. Each Lender hereby irrevocably agrees to make its Pro Rata Share of each such Revolving Loan
in the amount, in the manner and on the date specified in the preceding sentence notwithstanding (I) the amount of such borrowing may not comply with the minimum amount for advances of Revolving Loans otherwise required hereunder, (II)
whether any conditions specified in Section 5.2 are then satisfied, (III) whether a Default or an Event of Default then exists, (IV) failure of any such request or deemed request for Revolving Loan to be made by the time otherwise required
hereunder, (V) whether the date of such borrowing is a date on which Revolving Loans are otherwise permitted to be made hereunder or (VI) any termination of the Commitments relating thereto immediately prior to or contemporaneously with such
borrowing. Notwithstanding the preceding sentence, in the event that the Swingline Lender funds a Swingline Loan hereunder when the officers of the Swingline Lender directly involved with the credit facilities available to the Borrowers under this
Credit Agreement have actual knowledge that a monetary Event of Default or material Event of Default (which, for the avoidance of doubt shall include any violation of any provisions of Section 7.11) has occurred and is continuing, the Lenders shall
have the option but not the obligation to make Revolving Loans to fund their ratable shares of such Swingline Loan as contemplated herein. In the event that any Revolving Loan cannot for any reason be made on the date otherwise required above
(including, without limitation, as a result of the commencement of a proceeding under the Bankruptcy Code with respect to any one of the Borrowers or any other Credit Party), then each Lender hereby agrees that it shall forthwith purchase (as of the
date such borrowing would otherwise have occurred, but adjusted for any payments received from the Borrowers on or after such date and prior to such purchase) from the Swingline Lender such Participation Interest in the outstanding Swingline Loans
as shall be necessary to cause each such Lender to share in such Swingline Loans ratably based upon its Commitment Percentage of the Revolving Committed Amount (determined before giving effect to any termination of the Commitments pursuant to
Section 3.4), provided that (A) all interest payable on the Swingline Loans shall be for the account of the Swingline Lender until the date as of which the respective Participation Interest is purchased and (B) at the time any purchase of
Participation Interests pursuant to this sentence is actually made, the purchasing Lender shall be required to pay to the Swingline Lender, to the extent not paid to the Swingline Lender by the Borrowers in accordance with the terms of subsection
(c)(ii) below, interest on the principal amount of Participation Interests purchased for each day from and including the day upon which such borrowing would otherwise have occurred to but excluding the date of payment for such Participation
Interests, at the rate equal to the Federal Funds Rate.



(c) Interest on Swingline Loans.



(i) Interest. Subject to the provisions of Section 3.1, each Swingline Loan shall bear interest at a per annum rate (computed on the basis of the actual number of days elapsed over a year of 365 days or 366 days, as appropriate)
equal to the Adjusted Base Rate.



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(ii) Payment of Interest. Interest on Swingline Loans shall be payable in arrears
on each applicable Interest Payment Date (or at such other times as may be specified herein), unless accelerated sooner pursuant to Section 9.2.



(d) Swingline Note. The Swingline Loans shall be evidenced by a duly executed promissory note of the Borrowers to the Swingline
Lender in an original principal amount equal to the Swingline Committed Amount substantially in the form of Exhibit 2.4(d).



2.5 Reserved.



2.6 Joint and Several Liability of the Borrowers.



(a) Each of the Borrowers is accepting joint and several liability hereunder in consideration of the financial accommodation to be
provided by the Lenders under this Credit Agreement, for the mutual benefit, directly and indirectly, of each of the Borrowers and in consideration of the undertakings of each of the Borrowers to accept joint and several liability for the
obligations of each of them.



(b) Each of the
Borrowers jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Borrowers with respect to the payment and performance of all of the Credit
Party Obligations arising under this Credit Agreement and the other Credit Documents, it being the intention of the parties hereto that all the Credit Party Obligations shall be the joint and several obligations of each of the Borrowers without
preferences or distinction among them.



(c) If
and to the extent that any of the Borrowers shall fail to make any payment with respect to any of the obligations hereunder as and when due or to perform any of such obligations in accordance with the terms thereof, then in each such event, the
other Borrowers will make such payment with respect to, or perform, such obligation.



(d) The obligations of each Borrower under the provisions of this Section 2.6 constitute full recourse obligations of such Borrower,
enforceable against it to the full extent of its properties and assets, irrespective of the validity, regularity or enforceability of this Credit Agreement or any other circumstances whatsoever.



(e) Except as otherwise expressly provided herein, each
Borrower hereby waives notice of acceptance of its joint and several liability, notice of occurrence of any Default or Event of Default (except to the extent notice is expressly required to be given pursuant to the terms of this Credit Agreement),
or of any demand for any payment under this Credit Agreement, notice of any action at any time taken or omitted by the Lender under or in respect of any of the Credit Party Obligations hereunder, any requirement of diligence and, generally, all
demands, notices and other formalities of every kind in connection with this Credit Agreement. Each Borrower hereby assents to, and waives notice of, any extension or postponement of the time for the payment of any of the Credit Party Obligations
hereunder, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by the Lenders at any time or times in respect of any default by any Borrower in the performance or satisfaction of any term, covenant,
condition or provision of this Credit Agreement, any and all other indulgences whatsoever by the Lenders in respect of any of the Credit Party Obligations hereunder, and the taking, addition, substitution or release, in whole or in part, at any time
or times, of any security for any of such Credit Party Obligations or the addition, substitution or release, in whole or in part, of any Borrower. Without limiting the generality of the foregoing, each Borrower assents to any other action or delay
in acting or any failure to act on the part of the Lender, including, without limitation, any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations thereunder which might,
but for the provisions of this Section 2.6, afford grounds for terminating, discharging or relieving such Borrower, in whole or in part, from any of its obligations under this Section



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2.6, it being the intention of each Borrower that, so long as any of the Credit Party Obligations hereunder remain unsatisfied, the obligations of such
Borrower under this Section 2.6 shall not be discharged except by performance and then only to the extent of such performance. The obligations of each Borrower under this Section 2.6 shall not be diminished or rendered unenforceable by any winding
up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any reconstruction or similar proceeding with respect to any Borrower or any Lender. The joint and several liability of the Borrowers hereunder shall
continue in full force and effect notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the name, membership, constitution or place of formation of any Borrower or any Lender.



(f) The provisions of this Section 2.6 are made for the
benefit of the Administrative Agent and the Lenders and their respective successors and assigns, and may be enforced by any such Person from time to time against any of the Borrowers as often as occasion therefor may arise and without requirement on
the part of any Lender first to marshal any of its claims or to exercise any of its rights against any of the other Borrowers or to exhaust any remedies available to it against any of the other Borrowers or to resort to any other source or means of
obtaining payment of any of the Credit Party Obligations or to elect any other remedy. Without limiting the generality of the foregoing, each Borrower hereby specifically waives the benefits of N.C. Gen. Stat. §§26-7 through 26-9,
inclusive, to the extent applicable. The provisions of this Section 2.6 shall remain in effect until all the Credit Party Obligations hereunder shall have been paid in full or otherwise fully satisfied. If at any time, any payment, or any part
thereof, made in respect of any of the Credit Party Obligations, is rescinded or must otherwise be restored or returned by the Lenders upon the insolvency, bankruptcy or reorganization of any of the Borrowers, or otherwise, the provisions of this
Section 2.6 will forthwith be reinstated and in effect as though such payment had not been made.



(g) Notwithstanding any provision to the contrary contained herein or in any other of the Credit Documents or Hedging Agreements, the
obligations of each Borrower hereunder shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code or any comparable provisions of
any applicable state law.



2.7 Appointment of Principal
Borrower as Agent for Borrowers.



Each of the
Borrowers hereby appoints the Principal Borrower to act as its exclusive agent for all purposes under this Credit Agreement and the other Credit Documents (including, without limitation, with respect to all matters related to the borrowing and
repayment of loans as described in Section 2 and Section 3 hereof). Each of the Borrowers acknowledges and agrees that (a) the Principal Borrower may execute such documents on behalf of all the Borrowers as the Principal Borrower deems appropriate
in its sole discretion and each Borrower shall be bound by and obligated by all of the terms of any such document executed by the Principal Borrower on its behalf, (b) any notice or other communication delivered by the Administrative Agent or any
Lender hereunder to the Principal Borrower shall be deemed to have been delivered to each of the Borrowers and (c) the Administrative Agent and each of the Lenders shall accept (and shall be permitted to rely on) any document or agreement executed
by the Principal Borrower on behalf of the Borrowers (or any of them). The Borrowers must act through the Principal Borrower for all purposes under this Credit Agreement and the other Credit Documents. Notwithstanding anything contained herein to
the contrary, to the extent any provision in this Credit Agreement requires any Borrower to interact in any manner with the Administrative Agent or the Lenders, such Borrower shall do so through the Principal Borrower.



SECTION 3



OTHER PROVISIONS RELATING TO CREDIT FACILITIES



3.1 Default Rate.



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Upon the occurrence, and during the continuance, of an Event of Default, the principal of and, to the
extent permitted by law, interest on the Loans and any other amounts owing hereunder or under the other Credit Documents shall bear interest, payable on demand, at a per annum rate 4% greater than the rate which would otherwise be applicable (or if
no rate is applicable, whether in respect of interest, fees or other amounts, then the Adjusted Base Rate plus 4%).



3.2 Extension and Conversion.



Subject to the terms of Section 5.2, the Borrowers shall have the option, on any Business Day, to extend existing Loans into a subsequent permissible
Interest Period or to convert Loans into Loans of another interest rate type; provided, however, that (a) except as provided in Section 3.8, Eurodollar Loans may be converted into Base Rate Loans only (i) on the last day of the
Interest Period applicable thereto or (ii) upon payment of all amounts due pursuant to the terms of Section 3.12, (b) Eurodollar Loans may be extended, and Base Rate Loans may be converted into Eurodollar Loans, only if no Default or Event of
Default is in existence on the date of extension or conversion, (c) Loans extended as, or converted into, Eurodollar Loans shall be subject to the terms of the definition of Interest Period set forth in Section 1.1 and shall be in
such minimum amounts as provided in, with respect to Revolving Loans, Section 2.1(b)(ii), (d) no more than ten (10) Eurodollar Loans shall be outstanding hereunder at any time (it being understood that, for purposes hereof, Eurodollar Loans with
different Interest Periods shall be considered as separate Eurodollar Loans, even if they begin on the same date, although borrowings, extensions and conversions may, in accordance with the provisions hereof, be combined at the end of existing
Interest Periods to constitute a new Eurodollar Loan with a single Interest Period) and (e) Swingline Loans may not be extended or converted pursuant to this Section 3.2. Each such extension or conversion shall be effected by the Borrowers by
delivery of a Notice of Extension/Conversion, together with the officers certificate required by Section 5.2(e), to the office of the Administrative Agent specified in specified in Schedule 2.1(a), or at such other office as the
Administrative Agent may designate in writing, prior to 11:00 A.M. (Charlotte, North Carolina time) on the Business Day of, in the case of the conversion of a Eurodollar Loan into a Base Rate Loan, and on the third Business Day prior to, in the case
of the extension of a Eurodollar Loan as, or conversion of a Base Rate Loan into, a Eurodollar Loan, the date of the proposed extension or conversion, specifying the date of the proposed extension or conversion and the Loans to be so extended or
converted, the types of Loans into which such Loans are to be converted. Each request for extension or conversion shall be irrevocable and shall constitute a representation and warranty by the Borrowers of the matters specified in subsections (b),
(c), (d), (f) and (g) of Section 5.2. In the event the Borrowers fail to request extension or conversion of any Eurodollar Loan in accordance with this Section, or any such conversion or extension is not permitted or required by this Section, then
such Eurodollar Loan shall be automatically converted into a Base Rate Loan at the end of the Interest Period applicable thereto. The Administrative Agent shall give each Lender notice as promptly as practicable of any such proposed extension or
conversion affecting any Loan.



3.3 Prepayments.



(a) Voluntary Prepayments. The
Borrowers shall have the right to prepay Loans (other than the Swingline Loans) in whole or in part from time to time; provided, however, that each partial prepayment of Loans shall be in a minimum principal amount of $1,000,000 and
integral multiples of $1,000,000. Subject to the foregoing terms, amounts prepaid under this Section 3.3(a) shall be applied as the Borrowers may elect; provided that if the Borrowers fail to specify a voluntary prepayment then such
prepayment shall be applied first to Revolving Loans that are Base Rate Loans and then to Eurodollar Loans in direct order of Interest Period maturities starting with the earliest maturity date. All prepayments under this Section 3.3(a) shall be
subject to Section 3.12, but otherwise without premium or penalty.



(b) Mandatory Prepayments.



(i) Principal in Excess of Revolving Committed Amount; LOC Obligations in Excess of LOC Committed Amount. If at any time or for any reason, (A) the sum of the aggregate principal amount of outstanding Revolving
Loans plus the aggregate principal amount of outstanding Swingline Loans plus LOC Obligations outstanding shall exceed the Revolving Committed Amount, (B) the aggregate amount of outstanding Swingline Loans exceeds the Swingline
Committed Amount or (C) the aggregate amount of LOC Obligations outstanding exceeds the LOC Committed Amount, the Borrowers shall immediately make payment on the Loans and/or to a cash collateral account in respect of the LOC Obligations, in an
amount sufficient to eliminate such excess.



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(ii) Application of Mandatory Prepayments. All amounts required to be paid
pursuant to this Section 3.3(b) (i) shall be applied first, to Revolving Loans (and after all Revolving Loans have been paid), second, to Swingline Loans and third, to a cash collateral account in respect of LOC Obligations.
Within the parameters of the applications set forth above, prepayments shall be applied first to Base Rate Loans and then to Eurodollar Loans in direct order of Interest Period maturities starting with the earliest maturity date. All prepayments
under this Section 3.3(b) shall be subject to Section 3.12, but otherwise without premium or penalty, and shall be accompanied by interest on the principal amount prepaid through the date of prepayment.



(c) Prepayment Account. If the Borrowers are required
to make a mandatory prepayment of Eurodollar Loans under Section 3.3(b), the Borrowers shall have the right, in lieu of making such prepayment in full, to deposit an amount equal to such mandatory prepayment with the Administrative Agent in a cash
collateral account maintained (pursuant to documentation reasonably satisfactory to the Administrative Agent) by and in the sole dominion and control of the Administrative Agent. Any amounts so deposited shall be held by the Administrative Agent for
the benefit of the Lenders as collateral for the prepayment of such Eurodollar Loans and shall be applied to the prepayment of the applicable Eurodollar Loans at the end of the current Interest Periods applicable thereto. At the request of the
Principal Borrower, amounts so deposited shall be invested by the Administrative Agent in Cash Equivalents maturing prior to the date or dates on which it is anticipated that such amounts will be applied to prepay such Eurodollar Loans; any interest
earned on such Cash Equivalents will be for the account of the Borrowers and the Borrowers will deposit with the Administrative Agent the amount of any loss on any such Cash Equivalents to the extent necessary in order that the amount of the
prepayment to be made with the deposited amounts may not be reduced.



3.4 Termination, Reduction or Increase of Revolving Committed Amount.



(a) Voluntary Reductions. The Borrowers may from time to time permanently reduce or terminate the Revolving Committed Amount in
whole or in part (in minimum aggregate amounts of $5,000,000 or in integral multiples of $1,000,000 in excess thereof (or, if less, the full remaining amount of the then applicable Revolving Committed Amount)) upon five Business Days prior
written notice to the Administrative Agent; provided, however, no such termination or reduction shall be made which would cause the aggregate principal amount of outstanding Revolving Loans plus the aggregate principal amount of
outstanding Swingline Loans plus LOC Obligations outstanding to exceed the Revolving Committed Amount unless, concurrently with such termination or reduction, the Revolving Loans are repaid or payments are made to a cash collateral account as
security for the LOC Obligations for the benefit of the Lenders, in each case in an amount sufficient to eliminate such excess. The Administrative Agent shall promptly notify each affected Lender of receipt by the Administrative Agent of any notice
from the Borrowers pursuant to this Section 3.4(a).



(b) General. The Administrative Agent will promptly notify the Lenders of (i) any such notice of termination or reduction of the Revolving Committed Amount and (ii) any requested increase in the Revolving Committed Amount. Any
reduction of the Revolving Committed Amount shall be applied to the Revolving Commitment of each Lender according to its Pro Rata Share. To the extent the Revolving Committed Amount is increased pursuant to clause (b) above, all Lenders (including
both previously-existing and new Lenders) shall receive new Notes reflecting their respective Commitments and new Lenders shall, to the extent necessary to cause the outstanding principal amount of the Loans and other Credit Party Obligations
allocable to each Lender to equal each such Lenders Pro Rata Share, fund Loans directly to the other Lenders, as directed by the Administrative Agent. The Credit Parties hereby agree to execute and deliver any new Notes required pursuant to
this Section 3.4 to evidence the Loans made by the Lenders and acknowledge, consent and agree to the funding by any new Lenders of Loans pursuant to the previous sentence for the purpose of causing the outstanding principal amount of such Loans to
equal each Lenders Pro Rata Share.



3.5
Fees.



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(a) Facility Fee. In consideration of the Revolving Committed Amount being made
available by the Lenders hereunder, the Borrowers agree to pay to the Administrative Agent for the pro rata benefit of the Lenders (based on each Lenders Commitment Percentage of the Revolving Committed Amount) a fee (the Facility
Fee) on the first business day of each calendar quarter of the Principal Borrower following the Closing Date (as well as on the Maturity Date) for the immediately preceding quarter (or portion thereof), beginning with the first of such
dates to occur after the Closing Date. The Facility Fee shall be equal to (i) the sum of (A) the Applicable Percentage as of the last day of the calendar quarter for which such fee is being calculated (or, for payments due on the Maturity Date, the
Applicable Percentage on the Business Day immediately preceding the Maturity Date), plus (B) the Facility Fee Modifier as of the date of calculation, multiplied by (ii) the maximum amount of the Revolving Committed Amount as of any day
during the period for which such calculation is being performed. The Facility Fee shall commence to accrue on the Closing Date and shall continue to accrue through (but excluding) the date on which all of the Credit Party Obligations are fully
satisfied. The Administrative Agent shall endeavor in the ordinary course of business to give notice to each Lender promptly upon its receipt of notice that a Facility Fee Modifier that is not equal to zero will be applied to the calculation of the
Facility Fee.



| | (b) |  | Letter of Credit Fees.
| | --- |  | ----------------------



(i) Letter of Credit Fee. In consideration of the issuance of Letters of Credit hereunder, the Borrowers promise to pay to the
Administrative Agent for the account of each Lender a fee (the Letter of Credit Fee) on such Lenders Commitment Percentage of the average daily maximum amount available to be drawn under each such Letter of Credit computed
for each day from the date of issuance to the date of expiration at a rate equal to the Applicable Percentage. The Letter of Credit Fee will be payable quarterly in arrears on the first Business Day of each March, June, September and December for
the immediately preceding quarter (or a portion thereof) including the date of payment.



(ii) Issuing Lender Fees. In addition to the Letter of Credit Fee payable pursuant to clause (i) above and in addition to all other
fees payable pursuant to the terms of this Agreement, the Borrowers promise, with respect to each Letter of Credit, to pay to the Issuing Lender without sharing by the other Lenders (i) a letter of credit fronting fee (payable upon issuance or
extension of each Letter of Credit) equal to the greater of (A) of one-eighth of one percent (0.125%) on the maximum amount available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of
Credit), and (B) $1,500.00, and (ii) the customary charges from time to time of the Issuing Lender with respect to the issuance, amendment, transfer, administration, cancellation and conversion of, and drawings under, such Letters of Credit. Such
fees shall be due and payable on demand, shall be fully earned when paid and shall not be refundable for any reason whatsoever. For purposes of this Section 3.5(b), each renewal of any Letter of Credit, including an auto-renewal of any Letter of
Credit, shall be considered an issuance of a new Letter of Credit.



(c) Fee Letter. In addition to all other fees and expenses required to be paid by Borrowers hereunder, the Borrowers shall pay to the Administrative Agent and Arranger those fees reflected in the Fee Letter on
or before the dates required therein.



| | 3.6 |  | Capital Adequacy.
| | --- |  | -----------------



If any Lender has determined, after the date hereof, that the adoption or the becoming effective of, or any change in, or any change by any Governmental
Authority, central bank or comparable agency charged with the interpretation or administration thereof in the interpretation or administration of, any applicable law, rule or regulation regarding capital adequacy, or compliance by such Lender with
any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lenders capital or
assets as a consequence of its commitments or obligations hereunder to a level below that which such Lender could have achieved but for such adoption, effectiveness, change or compliance (taking into consideration such Lenders policies with
respect to capital adequacy), then, upon notice from such Lender to the Principal Borrower and delivery by such Lender of a statement setting forth the reduction in the rate of return experienced by such Lender and the amount necessary to compensate
the Lender under this Section 3.6, the Borrowers shall be obligated to pay to such Lender such additional amount or amounts as will compensate such



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Lender for such reduction. Each determination by any such Lender of amounts owing under this Section shall, absent manifest error, be conclusive and binding
on the parties hereto.



3.7 Limitation on Eurodollar
Loans; Payments Related to Reserves.



(a) If on or prior to the first day of any Interest Period for any Eurodollar Loan:



(i) the Administrative Agent determines (which determination shall be conclusive) that by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period; or



(ii) the Required Lenders determine (which determination shall be conclusive) and notify the Administrative Agent that the Eurodollar Rate
will not adequately and fairly reflect the cost to the Lenders of funding Eurodollar Loans for such Interest Period;



then the Administrative Agent shall give the Principal Borrower prompt notice thereof, and so long as such condition remains in effect, the Lenders shall
be under no obligation to make additional Eurodollar Loans, continue Eurodollar Loans, or to convert Base Rate Loans into Eurodollar Loans and the Borrowers shall, on the last day(s) of the then current Interest Period(s) for the outstanding
Eurodollar Loans, either prepay such Eurodollar Loans or convert such Eurodollar Loans into Base Rate Loans in accordance with the terms of this Credit Agreement.



(b) The Borrowers shall pay to each Lender, as long as such Lender shall be required to maintain reserves
with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as Eurocurrency liabilities), additional interest on the unpaid principal amount of each Eurodollar Loan equal to the actual
costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which interest is payable on such Loan,
provided the Borrower shall have received at least 15 days prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice 15 days prior to the relevant Interest
Payment Date, such additional interest shall be due and payable 15 days from receipt of such notice.



3.8 Illegality.



If any Lender reasonably determines that any Requirement of Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund Eurodollar Loans, or to determine or charge interest rates based upon the Eurodollar Rate, then, on notice thereof by such Lender to the Borrowers through the Administrative
Agent, any obligation of such Lender to make or continue Eurodollar Loans or to convert Base Rate Loans to Eurodollar Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrowers that the circumstances giving rise
to such determination no longer exist (which notice a Lender shall give promptly upon such determination). Upon receipt of such notice, the Borrowers shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if
applicable, convert all Eurodollar Loans of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Loans to such day, or immediately, if such Lender
may not lawfully continue to maintain such Eurodollar Loans. Upon any such prepayment or conversion, the Borrowers shall also pay accrued interest on the amount so prepaid or converted. Each Lender agrees to designate a different lending office for
purposes of this Credit Agreement if such designation will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.



3.9 Requirements of Law.



(a) If, after the date hereof, the adoption of any
applicable law, rule, or regulation, or any change in any applicable law, rule, or regulation, or any change in the interpretation or administration thereof by any Governmental Authority, central bank, or comparable agency charged with the
interpretation or administration



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thereof, or compliance by any Lender with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank,
or comparable agency:



(i) shall subject such
Lender to any tax, duty, or other charge with respect to any Eurodollar Loans, its Notes, or its obligation to make Eurodollar Loans, or change the basis of taxation of any amounts payable to such Lender under this Credit Agreement or its Notes in
respect of any Eurodollar Loans (other than taxes imposed on the overall net income of such Lender by the jurisdiction in which such Lender has its principal office);



(ii) shall impose, modify, or deem applicable any reserve, special deposit, assessment, or similar
requirement (other than the reserve requirements utilized in the determination of the Adjusted Eurodollar Rate) relating to any extensions of credit or other assets of, or any deposits with or other liabilities or commitments of, such Lender,
including the Commitment of such Lender hereunder; or



(iii) shall impose on such Lender or on the United States market for certificates of deposit or the London interbank market any other condition affecting this Credit Agreement or its Notes or any of such extensions of credit or liabilities
or commitments;



and the result of any of the foregoing is to
increase the cost to such Lender of making, converting into, continuing, or maintaining any Eurodollar Loans or to reduce any sum received or receivable by such Lender under this Credit Agreement or its Notes with respect to any Eurodollar Loans,
then the Borrowers shall pay to such Lender on demand such amount or amounts as will compensate such Lender for such increased cost or reduction. If any Lender requests compensation by the Borrowers under this Section 3.9(a), the Borrowers may, by
notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such Lender to make or continue Eurodollar Loans, or to convert Base Rate Loans into Eurodollar Loans, until the event or condition giving rise to such
request ceases to be in effect (in which case the provisions of Section 3.10 shall be applicable); provided that such suspension shall not affect the right of such Lender to receive the compensation so requested.



(b) Each Lender shall promptly notify the Principal Borrower
and the Administrative Agent of any event of which it has knowledge, occurring after the date hereof, which will entitle such Lender to compensation pursuant to this Section 3.9 and will designate a different Applicable Lending Office if such
designation will avoid the need for, or reduce the amount of, such compensation and will not, in the judgment of such Lender, be otherwise disadvantageous to it. Any Lender claiming compensation under this Section 3.9 shall furnish to the Principal
Borrower and the Administrative Agent a statement setting forth the additional amount or amounts to be paid to it hereunder which shall, absent manifest error, be conclusive and binding on the parties hereto. In determining such amount, such Lender
may use any reasonable averaging and attribution methods.



3.10 Treatment of Affected Loans.



If
the obligation of any Lender to make any Eurodollar Loan or to continue, or to convert Base Rate Loans into, Eurodollar Loans shall be suspended pursuant to Section 3.8 or 3.9 hereof, such Lenders Eurodollar Loans shall be automatically
converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for such Eurodollar Loans (or, in the case of a conversion required by Section 3.8 hereof, on such earlier date as such Lender may specify to the Principal
Borrower with a copy to the Administrative Agent) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 3.8 or 3.9 hereof that gave rise to such conversion no longer exist:



(a) to the extent that such Lenders Eurodollar Loans
have been so converted, all payments and prepayments of principal that would otherwise be applied to such Lenders Eurodollar Loans shall be applied instead to its Base Rate Loans; and



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(b) all Loans that would otherwise be made or continued by such Lender as Eurodollar
Loans shall be made or continued instead as Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise be converted into Eurodollar Loans shall remain as Base Rate Loans.



If such Lender gives notice to the Principal Borrower (with a copy to the Administrative
Agent) that the circumstances specified in Section 3.8 or 3.9 hereof that gave rise to the conversion of such Lenders Eurodollar Loans pursuant to this Section 3.10 no longer exist (which such Lender agrees to do promptly upon such
circumstances ceasing to exist) at a time when Eurodollar Loans made by other Lenders are outstanding, such Lenders Base Rate Loans shall be automatically converted, on the first day(s) of the next succeeding Interest Period(s) for such
outstanding Eurodollar Loans, to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders holding Eurodollar Loans and by such Lender are held pro rata (as to principal amounts, interest rate basis, and Interest
Periods) in accordance with their respective Commitments.



3.11 Taxes.



(a) Any
and all payments by the Borrowers to or for the account of any Lender or the Administrative Agent hereunder or under any other Credit Document shall be made free and clear of and without deduction for any and all present or future taxes, duties,
levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender and the Administrative Agent, taxes imposed on its income, and franchise taxes imposed on it, by the
jurisdiction under the laws of which such Lender (or its Applicable Lending Office) or the Administrative Agent (as the case may be) is organized or any political subdivision thereof (all such non-excluded taxes, duties, levies, imposts, deductions,
charges, withholdings, and liabilities being hereinafter referred to as Taxes). If the Borrowers shall be required by law to deduct any Taxes from or in respect of any sum payable under this Credit Agreement or any other Credit
Document to any Lender or the Administrative Agent, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 3.11) such Lender or
the Administrative Agent receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrowers shall make such deductions, (iii) the Borrowers shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law, and (iv) the Borrowers shall furnish to the Administrative Agent, at its address referred to in Section 11.1, the original or a certified copy of a receipt evidencing payment thereof.



(b) The Borrowers also agree to pay any and
all present or future stamp or documentary taxes and any other excise or property taxes or charges or similar levies which arise from any payment made under this Credit Agreement or any other Credit Document or from the execution or delivery of, or
otherwise with respect to, this Credit Agreement or any other Credit Document (hereinafter referred to as Other Taxes). Further, if the Borrowers (or any of them) shall be required to deduct or pay any Taxes or Other Taxes from or
in respect of any sum payable under any Credit Document to the Administrative Agent or any Lender, the Borrowers shall also pay to the Administrative Agent or to such Lender, as the case may be, at the time interest is paid, such additional amount
that the Administrative Agent or such Lender specifies is necessary to preserve the after-tax yield (after factoring in all taxes, including taxes imposed on or measured by net income) that the Administrative Agent or such Lender would have received
if such Taxes or Other Taxes had not been imposed.



(c) The Borrowers agree to indemnify each Lender and the Administrative Agent for (i) the full amount of Taxes and Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts
payable under this Section 3.11) paid by such Lender or the Administrative Agent (as the case may be) and any liability (including penalties, interest, and expenses) arising therefrom or with respect thereto; (ii) any other amounts payable under
Section 3.11(b) and (iii) any liability (including additions to tax, penalties, interest and expenses) arising therefrom or with respect thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally imposed or asserted by
the relevant Governmental Authority. Payment under this subsection (c) shall be made within 30 days after the date the Lender or the Administrative Agent makes a demand therefor.



(d) Each Lender organized under the laws of a jurisdiction outside the United States, on or prior to the
date of its execution and delivery of this Credit Agreement in the case of each Lender listed on



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the signature pages hereof and on or prior to the date on which it becomes a Lender in the case of each other Lender, and from time to time thereafter if
requested in writing by the Principal Borrower or the Administrative Agent (but only so long as such Lender remains lawfully able to do so), shall provide the Principal Borrower and the Administrative Agent with (i) Internal Revenue Service Form
W-8ECI or W-8BEN, as appropriate, or any successor form prescribed by the Internal Revenue Service, certifying that such Lender is entitled to benefits under an income tax treaty to which the United States is a party which reduces the rate of
withholding tax on payments of interest or certifying that the income receivable pursuant to this Credit Agreement is effectively connected with the conduct of a trade or business in the United States, (ii) Internal Revenue Service Form W-8 or W-9,
as appropriate, or any successor form prescribed by the Internal Revenue Service, and (iii) any other form or certificate required by any taxing authority (including any certificate required by Sections 871(h) and 881(c) of the Internal Revenue
Code), certifying that such Lender is entitled to an exemption from or a reduced rate of tax on payments pursuant to this Credit Agreement or any of the other Credit Documents.



(e) For any period with respect to which a Lender has failed to provide the Principal Borrower and the
Administrative Agent with the appropriate form pursuant to Section 3.11(d) (unless such failure is due to a change in treaty, law, or regulation occurring subsequent to the date on which a form originally was required to be provided), such Lender
shall not be entitled to indemnification under Section 3.11(a) or 3.11(b) with respect to Taxes imposed by the United States; provided, however, that should a Lender, which is otherwise exempt from or subject to a reduced rate of
withholding tax, become subject to Taxes because of its failure to deliver a form required hereunder, the Borrowers shall take such steps as such Lender shall reasonably request to assist such Lender to recover such Taxes.



(f) If the Borrowers are required to pay additional amounts
to or for the account of any Lender pursuant to this Section 3.11, then such Lender will agree to use reasonable efforts to change the jurisdiction of its applicable lending office so as to eliminate or reduce any such additional payment which may
thereafter accrue if such change, in the judgment of such Lender, is not otherwise disadvantageous to such Lender.



(g) Within thirty (30) days after the date of any payment of Taxes, the Borrowers shall furnish to the Administrative Agent the original
or a certified copy of a receipt evidencing such payment.



(h) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the agreements and obligations of the Borrowers contained in this Section 3.11 shall survive the repayment of the Loans, LOC
Obligations and other obligations under the Credit Documents and the termination of the Commitments hereunder.



3.12 Compensation.



Upon the request of the Administrative Agent, the Borrowers shall pay to the Administrative Agent, for the pro rata benefit of the Lenders, such amount or
amounts as shall be sufficient (in the reasonable opinion of the Administrative Agent) to compensate the Lenders for any loss, cost, or expense (including loss of anticipated profits) incurred by the Lenders as a result of:



(a) any payment, prepayment, or conversion of a Eurodollar
Loan for any reason (including, without limitation, the acceleration of the Loans pursuant to Section 9.2) on a date other than the last day of the Interest Period for such Loan; or



(b) any failure by the Borrowers for any reason (including, without limitation, the failure of any condition
precedent specified in Section 5 to be satisfied) to borrow, convert, continue, or prepay a Eurodollar Loan on the date for such borrowing, conversion, continuation, or prepayment specified in the relevant notice of borrowing, prepayment,
continuation, or conversion under this Credit Agreement.



With respect to
Eurodollar Loans, such indemnification may include an amount equal to the excess, if any, of (a) the amount of interest which would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of
such prepayment or of such failure to borrow, convert or continue to the last day of the



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applicable Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Eurodollar Loans provided for herein (excluding, however, the Applicable Percentage included therein, if any) over (b) the amount of interest (as reasonably determined by the
Administrative Agent) which would have accrued to the Administrative Agent on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market. The covenants of the Borrowers set forth in
this Section 3.12 shall survive the repayment of the Loans, LOC Obligations and other obligations under the Credit Documents and the termination of the Commitments hereunder.



3.13 Pro Rata Treatment.



Except to the extent otherwise provided herein:



(a) Loans. Each Loan, each payment or (subject to the terms of Section 3.3) prepayment of principal
of any Loan or reimbursement obligations arising from drawings under Letters of Credit, each payment of interest on the Loans or reimbursement obligations arising from drawings under Letters of Credit, each payment of Fees, each payment of the
Letter of Credit Fee, each reduction of the Revolving Committed Amount and each conversion or extension of any Loan, shall be allocated pro rata among the Lenders in accordance with the respective principal amounts of their outstanding Loans and
Participation Interests.



(b) Advances.
No Lender shall be responsible for the failure or delay by any other Lender in its obligation to make its ratable share of a borrowing hereunder; provided, however, that the failure of any Lender to fulfill its obligations hereunder
shall not relieve any other Lender of its obligations hereunder. Unless the Administrative Agent shall have been notified by any Lender prior to the date of any requested borrowing that such Lender does not intend to make available to the
Administrative Agent its ratable share of such borrowing to be made on such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on the date of such borrowing, and the Administrative
Agent in reliance upon such assumption, may (in its sole discretion but without any obligation to do so) make available to the Borrowers a corresponding amount. If such corresponding amount is not in fact made available to the Administrative Agent,
the Administrative Agent shall be able to recover such corresponding amount from such Lender. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agents demand therefor, the Administrative Agent will
promptly notify the Principal Borrower, and the Borrowers shall immediately pay such corresponding amount to the Administrative Agent. The Administrative Agent shall also be entitled to recover from the Lender or the Borrowers, as the case may be,
interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Administrative Agent to the Borrowers to the date such corresponding amount is recovered by the Administrative Agent at a
per annum rate equal to (i) from the Borrowers at the applicable rate for the applicable borrowing pursuant to the Notice of Borrowing and (ii) from a Lender at the Federal Funds Rate.



3.14 Sharing of Payments.



The Lenders agree among themselves that, in the event that any Lender shall obtain payment in respect of any Loan, LOC
Obligations or any other obligation owing to such Lender under this Credit Agreement through the exercise of a right of setoff, bankers lien or counterclaim, or pursuant to a secured claim under Section 506 of Title 11 of the United States
Code or other security or interest arising from, or in lieu of, such secured claim, received by such Lender under any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means, in excess of its Pro Rata Share of such
payment as provided for in this Credit Agreement, such Lender shall promptly purchase from the other Lenders a Participation Interest in such Loans, LOC Obligations and other obligations in such amounts, and make such other adjustments from time to
time, as shall be equitable to the end that all Lenders share such payment in accordance with their respective ratable shares as provided for in this Credit Agreement. The Lenders further agree among themselves that if payment to a Lender obtained
by such Lender through the exercise of a right of setoff, bankers lien, counterclaim or other event as aforesaid shall be rescinded or must otherwise be restored, each Lender which shall have shared the benefit of such payment shall, by
repurchase of a Participation Interest theretofore sold, return its share of that benefit (together with its share of any accrued interest payable with respect thereto) to each Lender whose payment shall have been rescinded or otherwise restored.
The Borrowers agree that any Lender so purchasing such a Participation Interest may, to the fullest extent permitted by law, exercise all rights of payment, including setoff, bankers lien or counterclaim, with respect to such Participation
Interest as fully as if such Lender were a holder of such Loan,



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LOC Obligations or other obligation in the amount of such Participation Interest. Except as otherwise expressly provided in this Credit Agreement, if any
Lender or the Administrative Agent shall fail to remit to the Administrative Agent or any other Lender an amount payable by such Lender or the Administrative Agent to the Administrative Agent or such other Lender pursuant to this Credit Agreement on
the date when such amount is due, such payments shall be made together with interest thereon for each date from the date such amount is due until the date such amount is paid to the Administrative Agent or such other Lender at a rate per annum equal
to the Federal Funds Rate. If under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a setoff to which this Section 3.14 applies, such Lender shall, to the extent practicable, exercise its
rights in respect of such secured claim in a manner consistent with the rights of the Lenders under this Section 3.14 to share in the benefits of any recovery on such secured claim.



3.15 Payments, Computations, Etc.



(a) Except as otherwise specifically provided herein, all payments hereunder shall be made to the
Administrative Agent in Dollars in immediately available funds, without setoff, deduction, counterclaim or withholding of any kind, at the Administrative Agents office specified in Schedule 2.1(a) not later than 12:00 Noon (Charlotte,
North Carolina time) on the date when due. Payments received after such time shall be deemed to have been received on the next succeeding Business Day. The Administrative Agent may (but shall not be obligated to) debit the amount of any such payment
which is not made by such time to any ordinary deposit account of any of the Borrowers maintained with the Administrative Agent (with notice to the Principal Borrower). The Borrowers (or any one of them) shall, at the time it makes any payment under
this Credit Agreement, specify to the Administrative Agent the Loans, LOC Obligations, Fees, interest or other amounts payable by the Borrowers hereunder to which such payment is to be applied (and in the event that it fails so to specify, or if
such application would be inconsistent with the terms hereof, the Administrative Agent shall distribute such payment to the Lenders in such manner as the Administrative Agent may determine to be appropriate in respect of obligations owing by the
Borrowers hereunder, subject to the terms of Section 3.13(a)). The Administrative Agent will distribute such payments to such Lenders, if any such payment is received prior to 12:00 Noon (Charlotte, North Carolina time) on a Business Day in like
funds as received prior to the end of such Business Day and otherwise the Administrative Agent will distribute such payment to such Lenders on the next succeeding Business Day. Whenever any payment hereunder shall be stated to be due on a day which
is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day (subject to accrual of interest and for the period of such extension), except that in the case of Eurodollar Loans, if the extension would cause the
payment to be made in the next following calendar month, then such payment shall instead be made on the next preceding Business Day. Except as expressly provided otherwise herein, all computations of interest and fees shall be made on the basis of
actual number of days elapsed over a year of 360 days, except with respect to computation of interest on Base Rate Loans which (unless the Base Rate is determined by reference to the Federal Funds Rate) shall be calculated based on a year of 365 or
366 days, as appropriate. Interest shall accrue from and include the date of borrowing, but exclude the date of payment. If the Administrative Agent fails to distribute such payment to such Lenders on the day required by this Section 3.15, the
Administrative Agent shall pay to such Lenders interest on the undistributed amount from and including the day such amount was required to be distributed to but excluding the date such amount is distributed at a per annum rate equal to the Federal
Funds Rate.



(b) Allocation of Payments
After Event of Default. Notwithstanding any other provisions of this Credit Agreement to the contrary, after the occurrence and during the continuance of an Event of Default, all amounts collected or received by the Administrative Agent or any
Lender on account of the Credit Party Obligations or any other amounts outstanding under any of the Credit Documents shall be paid over or delivered as follows:



FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including without limitation
reasonable attorneys fees actually incurred) of the Administrative Agent in connection with enforcing the rights of the Lenders under the Credit Documents;



SECOND, to payment of any fees owed to the Administrative Agent;



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THIRD, to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation, reasonable attorneys fees actually incurred) of each of the Lenders in connection with enforcing its rights under the Credit Documents or otherwise with respect to the Credit Party Obligations owing to such Lender;



FOURTH, to the payment of all of the Credit
Party Obligations consisting of accrued fees and interest;



FIFTH, to the payment of the outstanding principal amount of the Credit Party Obligations (including the payment or cash collateralization of the outstanding LOC Obligations);



SIXTH, to all other Credit Party Obligations and other
obligations which shall have become due and payable under the Credit Documents or otherwise and not repaid pursuant to clauses FIRST through FIFTH above; and



SEVENTH, to the payment of the surplus, if any, to whoever may be lawfully entitled to receive such surplus.



In carrying out the foregoing, (i) amounts received shall be
applied in the numerical order provided until exhausted prior to application to the next succeeding category; (ii) each of the Lenders shall receive an amount equal to its Pro Rata Share (based on the proportion that the then outstanding Loans and
LOC Obligations held by such Lender bears to the aggregate then outstanding Loans and LOC Obligations) of amounts available to be applied pursuant to clauses THIRD, FOURTH, FIFTH and SIXTH above; and
(iii) to the extent that any amounts available for distribution pursuant to clause FIFTH above are attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by the Administrative Agent in
a cash collateral account and applied (A) first, to reimburse the Issuing Lender from time to time for any drawings under such Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations of the types
described in clauses FIFTH and SIXTH above in the manner provided in this Section 3.15(b).



3.16 Evidence of Debt.



Each Lender shall maintain an account or accounts evidencing each Loan made by such Lender to the Borrowers from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time under this Credit Agreement. Each Lender will make reasonable efforts to maintain the accuracy of its account or accounts and to promptly update its account or accounts from
time to time, as necessary.



3.17 Survival.



All of the Borrowers obligations under Sections 3.5,
3.6, 3.9, 3.11, 3.12 and 3.15 with respect to events or conditions occurring or existing at or prior to the termination of the Revolving Committed Amount and repayment of all other Credit Party Obligations hereunder, shall survive such termination
and repayment.



SECTION 4



GUARANTY



4.1 The Guarantee.



Each of the Guarantors hereby jointly and severally guarantees to each
Lender, each Affiliate of a Lender that enters into a Hedging Agreement, and the Administrative Agent, as hereinafter provided, the prompt payment of the Credit Party Obligations in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that if any of the Credit Party Obligations are not paid in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice



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whatsoever, and that in the case of any extension of time of payment or renewal of any of the Credit Party Obligations, the same will be promptly paid in
full when due (whether at extended maturity, as a mandatory prepayment, by acceleration or otherwise) in accordance with the terms of such extension or renewal.



Notwithstanding any provision to the contrary contained herein or in any other of the Credit Documents or Hedging Agreements, the obligations of each
Guarantor hereunder shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code or any comparable provisions of any applicable
state law.



4.2 Obligations Unconditional.



The obligations of the Guarantors under Section 4.1 are joint
and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Credit Documents or Hedging Agreements, or any other agreement or instrument referred to therein, or any
substitution, release, impairment or exchange of any other guarantee of or security for any of the Credit Party Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 4.2 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances.
Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against any of the Borrowers or any other Guarantor of the Credit Party Obligations for amounts paid under this Section 4 until
such time as the Lenders (and any Affiliates of Lenders entering into Hedging Agreements) have been paid in full, all Commitments under this Credit Agreement have been terminated and no Person or Governmental Authority shall have any right to
request any return or reimbursement of funds from the Lenders in connection with monies received under the Credit Documents or Hedging Agreements. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted
by law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder which shall remain absolute and unconditional as described above:



(a) at any time or from time to time, without notice to any
Guarantor, the time for any performance of or compliance with any of the Credit Party Obligations shall be extended, or such performance or compliance shall be waived;



(b) any of the acts mentioned in any of the provisions of any of the Credit Documents, any Hedging Agreement
or any other agreement or instrument referred to in the Credit Documents or Hedging Agreements shall be done or omitted;



(c) the maturity of any of the Credit Party Obligations shall be accelerated, or any of the Credit Party Obligations shall be modified,
supplemented or amended in any respect, or any right under any of the Credit Documents, any Hedging Agreement or any other agreement or instrument referred to in the Credit Documents or Hedging Agreements shall be waived or any other guarantee of
any of the Credit Party Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;



(d) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for any of the Credit Party
Obligations shall fail to attach or be perfected; or



(e) any of the Credit Party Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without
limitation, any creditor of any Guarantor).



With respect to its obligations
hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against
any Person under any of the Credit Documents, any Hedging Agreement or any other agreement or instrument referred to in the Credit Documents or Hedging Agreements, or against any other Person under any other guarantee of, or security for, any of the
Credit Party Obligations.



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4.3 Reinstatement.



The obligations of the Guarantors under this Section 4 shall be automatically reinstated if and to the extent that for any
reason any payment by or on behalf of any Person in respect of the Credit Party Obligations is rescinded or must be otherwise restored by any holder of any of the Credit Party Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, fees and expenses of counsel) incurred by the
Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar
payment under any bankruptcy, insolvency or similar law.



4.4 Certain Additional Waivers.



Without limiting the generality of the provisions of this Section 4, each Guarantor hereby specifically waives the benefits of N.C. Gen. Stat. §§ 26-7 through 26-9, inclusive, to the extent applicable. Each Guarantor further
agrees that such Guarantor shall have no right of recourse to security for the Credit Party Obligations, except through the exercise of the rights of subrogation pursuant to Section 4.2 and through the exercise of rights of contribution pursuant to
Section 4.6.



4.5 Remedies.



The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Credit Party Obligations may be declared to be forthwith due and payable as provided in Section 9.2 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section 9.2) for purposes of Section 4.1 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Credit Party Obligations from
becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Credit Party Obligations being deemed to have become automatically due and payable), the Credit Party Obligations (whether or not
due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of Section 4.1.



4.6 Rights of Contribution.



The Guarantors and the Borrowers hereby agree as among themselves that, if any Guarantor shall make an Excess Payment (as defined below), such Guarantor
shall have a right of contribution from each other Guarantor and each other Borrower in an amount equal to such other Guarantors Contribution Share (as defined below) of such Excess Payment. The payment obligations of any Guarantor under this
Section 4.6 shall be subordinate and subject in right of payment to the prior payment in full to the Administrative Agent and the Lenders of the Guaranteed Obligations, and none of the Guarantors shall exercise any right or remedy under this Section
4.6 against any other Guarantor or any Borrower until payment and satisfaction in full of all of any Guaranteed Obligations. For purposes of this Section 4.6, (a) Guaranteed Obligations shall mean any obligations arising under the
other provisions of this Section 4; (b) Excess Payment shall mean the amount paid by any Guarantor in excess of its Guarantor Pro Rata Share of such Guaranteed Obligations; (c) Guarantor Pro Rata Share shall
mean, for any Guarantor in respect of any payment of Guaranteed Obligations, the ratio (expressed as a percentage) as of the date of such payment of Guaranteed Obligations of (i) the amount by which the aggregate present fair salable value of all of
its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount
by which the aggregate present fair salable value of all assets and other properties of the Borrowers and all of the Guarantors exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of the Borrowers and the Guarantors hereunder) of the Borrowers and all of the Guarantors; provided, however, that, for purposes of calculating the Guarantor Pro Rata Shares of the Guarantors
in respect of any payment of Guaranteed Obligations, any Guarantor that became a Guarantor subsequent to the date of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial information for such
Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment; and (d) Contribution Share shall mean, for any Guarantor in respect of any Excess Payment made by any
other Guarantor, the ratio (expressed as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present



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fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of the Borrowers and all of the Guarantors
other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Borrowers and the Guarantors
hereunder) of the Borrowers and all of the Guarantors other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Guarantors in respect of any Excess Payment, any
Guarantor that became a Guarantor subsequent to the date of any such Excess Payment shall be deemed to have been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as of the date such Guarantor became a
Guarantor shall be utilized for such Guarantor in connection with such Excess Payment. This Section 4.6 shall not be deemed to affect any right of subrogation, indemnity, reimbursement or contribution that any Guarantor may have under applicable law
against any of the Borrowers in respect of any payment of Guaranteed Obligations. Notwithstanding the foregoing, all rights of contribution against any Guarantor shall terminate from and after such time, if ever, that such Guarantor shall be
relieved of its obligations pursuant to Section 8.4.



4.7
Continuing Guarantee.



The guarantee in this
Section 4 is a continuing guarantee, and shall apply to all Credit Party Obligations whenever arising.



SECTION 5



CONDITIONS



5.1 Closing Conditions.



The obligation
of the Lenders to enter into this Credit Agreement and to make the initial Loans or the Issuing Lender to issue the initial Letter of Credit, whichever shall occur first, shall be subject to satisfaction of the following conditions (in form and
substance acceptable to the Lenders):



(a) Executed Credit
Documents. Receipt by the Administrative Agent of duly executed copies of: (i) this Amended and Restated Credit Agreement; (ii) the Notes; and (iii) all other Credit Documents, each in form and substance acceptable to the Lenders in their sole
discretion.



(b) Corporate Documents. Receipt by
the Administrative Agent of the following:



(i) Charter
Documents. Copies of the articles or certificates of incorporation or other charter documents of each Credit Party, which copies shall be (A) in the case of each Borrower, certified to be true and complete as of a recent date by the appropriate
Governmental Authority of the state or other jurisdiction of its incorporation and certified by a secretary or assistant secretary of such Credit Party to be true and correct as of the Closing Date and (B) in the case of all other Credit Parties,
certified by a secretary or assistant secretary of such Credit Party to be true and correct as of the Closing Date.



(ii) Bylaws. A copy of the bylaws of each Borrower certified by a secretary or assistant secretary of such Person to be true and correct as of the
Closing Date and an officers certificate from each of the other Credit Parties certifying that the bylaws of such Credit Party delivered pursuant to the terms of the 2000 Credit Facility have not changed (or, to the extent such bylaws have
changed, certifying the changed document).



(iii)
Resolutions. Copies of resolutions of the Board of Directors of each Credit Party approving and adopting the Credit Documents to which it is a party, the transactions contemplated therein and authorizing execution and delivery thereof,
certified by a secretary or assistant secretary of such Credit Party to be true and correct and in force and effect as of the Closing Date.



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(iv) Good Standing. Copies of certificates of good standing, existence or its equivalent
with respect to each Credit Party certified as of a recent date by the appropriate Governmental Authorities of the state or other jurisdiction of incorporation and each other jurisdiction in which the failure to so qualify and be in good standing
could reasonably be expected to have a Material Adverse Effect.



(v) Incumbency. An incumbency certificate of each Credit Party certified by a secretary or assistant secretary to be true and correct as of the Closing Date.



(c) Financial Statements. Receipt by the Administrative Agent and the Lenders of (i) the unaudited consolidated
financial statements of the Consolidated Parties, including balance sheets and income and cash flow statements for the fiscal quarter ended March 31, 2003 and (ii) such other information relating to the Consolidated Parties as the Administrative
Agent may reasonably require in connection with the structuring and syndication of credit facilities of the type described herein.



(d) Opinions of Counsel. The Administrative Agent shall have received an opinion, or opinions (which shall cover among other things,
authority, legality, validity, binding effect and enforceability) reasonably satisfactory to the Administrative Agent addressed to the Administrative Agent and the Lenders, dated as of the Closing Date, from legal counsel to the Credit Parties.



(e) Material Adverse Effect. No material adverse change
shall have occurred since December 31, 2002 in the condition (financial or otherwise), business, assets, operations, management or prospects of the Consolidated Parties taken as a whole.



(f) Litigation. There shall not exist any pending or threatened action, suit, investigation or proceeding against a
Consolidated Party that could reasonably be expected to have a Material Adverse Effect.



(g) Officers Certificates. The Administrative Agent shall have received a certificate or certificates executed by an authorized officer of the Principal Borrower as of the Closing Date stating that (A)
each Consolidated Party is in compliance with all existing financial obligations, (B) all governmental, shareholder and third party consents and approvals necessary for the Credit Parties to enter into the Credit Documents and fully perform
thereunder, if any, have been obtained, (C) no action, suit, investigation or proceeding is pending or threatened in any court or before any arbitrator or governmental instrumentality that purports to affect any Consolidated Party or any transaction
contemplated by the Credit Documents, if such action, suit, investigation or proceeding could reasonably be expected to have a Material Adverse Effect, and (D) immediately after giving effect to this Credit Agreement, the other Credit Documents and
all the transactions contemplated therein to occur on such date, (1) each of the Credit Parties is Solvent, (2) no Default or Event of Default exists, (3) all representations and warranties contained herein and in the other Credit Documents are true
and correct in all material respects, and (4) the Credit Parties are in compliance with each of the financial covenants set forth in Section 7.11.



(h) Attorney Costs. Unless waived by the Administrative Agent, the Borrowers shall have paid all Attorney Costs of the Administrative Agent to the
extent invoiced prior to or on the Closing Date, plus such additional amounts of Attorney Costs as shall constitute its reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing proceedings (provided that such
estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent).



(i) Solvency. The Administrative Agent shall have received a certificate executed by the chief financial officer of the Borrower as of the Closing
Date, in form and substance satisfactory to the Administrative Agent, regarding the Solvency of each of the Credit Parties on a consolidated basis.



(j) Fees and Expenses. Payment by the Credit Parties of all other fees and expenses owed by them to the Lenders and the Administrative Agent.



(k) Insurance Certificates. Receipt by the
Administrative Agent of an insurance certificate evidencing the insurance in effect with respect to the Properties as of the Closing Date.



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(l) Other. Receipt by the Lenders of such other documents, instruments, agreements or information
as reasonably requested by any Lender, including, but not limited to, information regarding litigation, tax, accounting, labor, insurance, pension liabilities (actual or contingent), real estate leases, material contracts, debt agreements, property
ownership and contingent liabilities of the Consolidated Parties.



5.2 Conditions to all Extensions of Credit.



The obligations of each Lender to make, convert or extend any Loan and of the Issuing Lender to issue or extend any Letter of Credit (including the initial Loans and the initial Letter of Credit) are subject to satisfaction of the following
conditions in addition to satisfaction on the Closing Date of the conditions set forth in Section 5.1:



(a) The Borrowers shall have delivered (i) in the case of any Revolving Loan, an appropriate Notice of Borrowing or Notice of Extension/Conversion or (ii)
in the case of any Letter of Credit, the Issuing Lender shall have received an appropriate request for issuance in accordance with the provisions of Section 2.3(b);



(b) The representations and warranties set forth in Section 6 shall be, subject to the limitations set forth therein, true
and correct in all material respects as of such date (except for those which expressly relate to an earlier date);



(c) There shall not have been commenced against any Credit Party an involuntary case under any applicable bankruptcy, insolvency or other similar law now
or hereafter in effect, or any case, proceeding or other action for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its property or for the
winding up or liquidation of its affairs, and such involuntary case or other case, proceeding or other action shall remain undismissed, undischarged or unbonded;



(d) No Default or Event of Default shall exist and be continuing either prior to or after giving effect thereto;



(e) Concurrent with the delivery of the appropriate notice required
pursuant to Section 5.2(a) above, the Principal Borrower shall have delivered a certificate of the chief financial officer of the Principal Borrower substantially in the form of Exhibit 7.1(c), (i) demonstrating compliance with the financial
covenants contained in Section 7.11(a) and Section 7.11(b) by calculation thereof after giving effect to the making of the requested Loan (and the application of the proceeds thereof) or to the issuance of the requested Letter of Credit, as the case
may be, and (ii) stating that no Default or Event of Default exists, or if any Default or Event of Default does exist, specifying the nature and extent thereof and what action the Credit Parties propose to take with respect thereto.



(f) No development or event which has had or could reasonably be expected to
have a Material Adverse Effect shall have occurred since December 31, 2002; and



(g) Immediately after giving effect to the making of such Loan (and the application of the proceeds thereof) or to the issuance of such Letter of Credit, as the case may be, (i) the sum of the aggregate principal
amount of outstanding Revolving Loans plus the aggregate principal amount of outstanding Swingline Loans plus LOC Obligations outstanding shall not exceed the Revolving Committed Amount, and (ii) the LOC Obligations shall not exceed
the LOC Committed Amount.



The delivery of each Notice of Borrowing, each
Notice of Extension/Conversion and each request for a Letter of Credit pursuant to Section 2.3(b) shall constitute a representation and warranty by the Borrowers of the correctness of the matters specified in subsections (b), (c), (d), (f) and (g)
above.



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SECTION 6



REPRESENTATIONS AND WARRANTIES



The Credit Parties hereby represent to the Administrative Agent and each Lender that:



6.1 Financial Condition.



The financial statements delivered to the Lenders pursuant to Section 5.1(c) and Section 7.1(a) and (b): (a) have been
prepared in accordance with GAAP and (b) present fairly the consolidated financial condition, results of operations and cash flows of the Consolidated Parties as of such date and for such periods. Since December 31, 2002 there has been no sale,
transfer or other disposition by any Consolidated Party of any material part of the business or property of any Consolidated Party and no purchase or other acquisition by any of them of any business or property (including any capital stock of any
other Person) material in relation to the financial condition of any Consolidated Party in each case, which, is not (i) reflected in the most recent financial statements delivered to the Lenders pursuant to Section 7.1 or in the notes thereto or
(ii) otherwise communicated to the Administrative Agent.



6.2 No Change; Dividends.



Since
December 31, 2002, (a) there has been no development or event relating to or affecting a Consolidated Party which has had or could reasonably be expected to have a Material Adverse Effect and (b) except as otherwise permitted under this Credit
Agreement, no dividends or other distributions have been declared, paid or made upon the Capital Stock in a Consolidated Party nor has any of the Capital Stock in a Consolidated Party been redeemed, retired, purchased or otherwise acquired for value
by such Person other than in connection with the redemption of the Capital Stock of Highwoods Realty pursuant to the terms of the Highwoods Realty Limited Partnership Agreement.



6.3 Organization; Existence; Compliance with Law.



Each of the Consolidated Parties (a) is duly organized, validly existing and
is in good standing under the laws of the jurisdiction of its incorporation or organization, (b) has the corporate or other necessary power and authority, and the legal right, to own and operate its property, to lease the property it operates as
lessee and to conduct the business in which it is currently engaged, and (c) is duly qualified as a foreign entity and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its
business requires such qualification, other than in such jurisdictions where the failure to be so qualified and in good standing could not reasonably be expected to have a Material Adverse Effect.



6.4 Power; Authorization; Enforceable Obligations.



Each of the Credit Parties has the corporate or other necessary power and
authority, and the legal right, to make, deliver and perform the Credit Documents to which it is a party, and in the case of the Borrowers, to obtain extensions of credit hereunder, and has taken all necessary corporate action to authorize the
borrowings and other extensions of credit on the terms and conditions of this Credit Agreement and to authorize the execution, delivery and performance of the Credit Documents to which it is a party. No consent or authorization of, filing with,
notice to or other similar act by or in respect of, any Governmental Authority or any other Person is required to be obtained or made by or on behalf of any Credit Party in connection with the borrowings or other extensions of credit hereunder or
with the execution, delivery, performance, validity or enforceability of the Credit Documents to which such Credit Party is a party other than those which have been obtained or made. This Credit Agreement has been, and each other Credit Document to
which any Credit Party is a party will be, duly executed and delivered on behalf of the Credit Parties. This Credit Agreement constitutes, and each other Credit Document to which any Credit Party is a party when executed and delivered will
constitute, a legal, valid and binding obligation of such Credit Party enforceable against such party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).



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6.5 No Conflicts.



Neither the execution and delivery of the Credit Documents, nor the consummation of the transactions contemplated therein,
nor the performance of and compliance with the terms and provisions thereof by such Credit Party will (a) violate or conflict with any provision of its articles or certificate of incorporation or bylaws or other organizational or governing documents
of such Person, (b) violate, contravene or materially conflict with any Requirement of Law or any other law, regulation (including, without limitation, Regulation U or Regulation X), order, writ, judgment, injunction, decree or permit applicable to
it, (c) violate, contravene or conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which it is a party or by which it may
be bound, the violation of which could reasonably be expected to have a Material Adverse Effect, or (d) result in or require the creation of any Lien (other than those contemplated in or created in connection with the Credit Documents) upon or with
respect to its properties.



6.6 No Default.



No Consolidated Party is in default in any respect under any
contract, lease, loan agreement, indenture, mortgage, security agreement or other agreement or obligation to which it is a party or by which any of its properties is bound which default could reasonably be expected to have a Material Adverse Effect.
No Default or Event of Default has occurred or exists except as previously disclosed in writing to the Lenders.



6.7 Ownership.



Each Consolidated Party is the owner of, and has good and marketable title to, all of its respective assets and none of such assets is subject to any Lien
other than Liens permitted hereunder.



6.8
Indebtedness.



Except as otherwise permitted under
Section 8.1, the Consolidated Parties have no Indebtedness.



6.9 Litigation.



There are no actions,
suits or legal, equitable, arbitration or administrative proceedings, pending or, to the knowledge of any Credit Party, threatened against any Consolidated Party which could reasonably be expected to have a Material Adverse Effect.



6.10 Taxes.



Each Consolidated Party has filed, or caused to be filed, all tax returns
(federal, state, local and foreign) required to be filed and paid (a) all amounts of taxes shown thereon to be due (including interest and penalties) and (b) all other taxes, fees, assessments and other governmental charges (including mortgage
recording taxes, documentary stamp taxes and intangibles taxes) owing by it, except for such taxes (i) which are not yet delinquent, (ii) the nonpayment of which is not reasonably likely to result in a Material Adverse Effect (provided that failure
to pay income or ad valorem real estate taxes shall be deemed, for purposes of this Section 6.10, to be likely to have a Material Adverse Effect) or (iii) that are being contested in good faith and by proper proceedings, and against which adequate
reserves are being maintained in accordance with GAAP. No Credit Party is aware as of the Closing Date of any proposed tax assessments against it or any other Consolidated Party.



6.11 Compliance with Laws.



Each Consolidated Party is in compliance with all Requirements of Law and all other laws, rules, regulations, orders and
decrees applicable to it, or to its properties, unless such failure to comply could not reasonably be expected to have a Material Adverse Effect and each Consolidated Party is current with all material reports and documents, if any, required to be
filed with any state or federal securities commission or similar agency and is in full compliance in all material respects with all applicable rules and regulations of such commissions.



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6.12 ERISA.



(a) Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal
or state Laws. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to
the best knowledge of the Credit Parties, nothing has occurred which would prevent, or cause the loss of, such qualification. Each Credit Party and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.



(b) There are no pending or, to the best knowledge of the Credit Parties, threatened claims, actions or lawsuits, or action
by any Governmental Authority, with respect to any Plan that could be reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that
has resulted or could reasonably be expected to result in a Material Adverse Effect.



(c) (i) No outstanding liability exists as the result of an ERISA Event and no ERISA Event is reasonably expected to occur in the future; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) no Credit Party
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any unsatisfied liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) no Credit Party
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any unsatisfied liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such unsatisfied liability) under Sections 4201
or 4243 of ERISA with respect to a Multiemployer Plan; and (v) no Credit Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.



6.13 Subsidiaries.



Set forth on Schedule 6.13 is a complete and accurate list of all
Subsidiaries of each Consolidated Party. Information on Schedule 6.13 includes (a) jurisdiction of incorporation or organization and (b) with respect to any Subsidiary that is not a Wholly Owned Subsidiary, the number of shares of each class
of Capital Stock outstanding, the number and percentage of outstanding shares of each class owned (directly or indirectly) by such Subsidiary, and the number and effect, if exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto. The outstanding Capital Stock of all such Subsidiaries is validly issued, fully paid and non-assessable and is owned by each such Consolidated Party, directly or indirectly, free and clear
of all Liens (other than those arising under or contemplated in connection with the Credit Documents). Other than as set forth in Schedule 6.13, no Subsidiary that is not a Wholly Owned Subsidiary has outstanding any securities convertible
into or exchangeable for its Capital Stock nor does any such Person have outstanding any rights to subscribe for or to purchase or any options for the purchase of, or any agreements providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to its Capital Stock. Schedule 6.13 may be updated from time to time by the Borrowers by giving written notice thereof to the Administrative Agent.



6.14 Governmental Regulations, Etc.



(a) No part of the Letters of Credit or proceeds of the
Loans will be used, directly or indirectly, for the purpose of purchasing or carrying any margin stock within the meaning of Regulation U, or for the purpose of purchasing or carrying or trading in any securities. If requested by any
Lender or the Administrative Agent, the Borrowers will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form U-1 referred to in Regulation U. No indebtedness being
reduced or retired out of the proceeds of the Loans was or will be incurred for the purpose of purchasing or carrying any margin stock within the meaning of Regulation U or any margin security within the meaning of Regulation T.
Margin stock within the meaning of Regulation U does not constitute more than 25% of the value of the consolidated assets of the Consolidated Parties. None of the transactions contemplated by this Credit Agreement (including, without
limitation, the direct or indirect use of the proceeds of the Loans) will violate or result in a violation of the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or regulations issued pursuant thereto, or
Regulation T, U or X.



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(b) No Consolidated Party is subject to regulation under the Public Utility Holding
Company Act of 1935, the Federal Power Act or the Investment Company Act of 1940, each as amended. In addition, no Consolidated Party is (i) an investment company registered or required to be registered under the Investment Company Act
of 1940, as amended, and is not controlled by such a company, or (ii) a holding company, or a subsidiary company of a holding company, or an affiliate of a holding company or of a
subsidiary of a holding company, within the meaning of the Public Utility Holding Company Act of 1935, as amended.



(c) Except as disclosed to the Administrative Agent in writing, no director, executive officer or principal shareholder of any
Consolidated Party is an insider as such term is defined in Regulation O such that any Lender would be in violation of Regulation O with respect to any Loan hereunder.



(d) Each Consolidated Party has obtained and holds in full force and effect, all franchises, licenses,
permits, certificates, authorizations, qualifications, accreditations, easements, rights of way and other rights, consents and approvals which are necessary for the ownership of its respective property and to the conduct of its respective businesses
as presently conducted, other than those which the failure to obtain and hold is not reasonably likely to result in a Material Adverse Effect.



6.15 Purpose of Loans and Letters of Credit.



The proceeds of the Loans hereunder shall be used solely by the Borrowers (a) to to finance the acquisition of (i) for lease office and industrial
properties, (ii) subject to Section 7.11(j), properties other than for lease office and industrial properties, (iii) Persons whose primary business is the ownership, leasing and management of for lease office and industrial properties and (iv)
subject to Section 7.11(j), Persons whose primary business is the ownership, leasing and management of properties other than for lease office and industrial properties, (b) to finance the development of (i) new office and industrial properties and
(ii) subject to Section 7.11(j), to finance the development of properties other than for lease office and industrial properties, and (c) for working capital and other general corporate purposes. The Letters of Credit shall be used only for or in
connection with appeal bonds, reimbursement obligations arising in connection with surety and reclamation bonds, reinsurance, domestic or international trade transactions and obligations not otherwise aforementioned relating to transactions entered
into by the applicable account party in the ordinary course of business. In addition, Letters of Credit may be used to provide credit enhancement for any Indebtedness of a Credit Party.



6.16 Environmental Matters.



(a) There is no violation of any Environmental Law with respect to the facilities and properties owned,
leased or operated by the Consolidated Parties or the businesses operated by the Consolidated Parties which would, in the aggregate, result in anticipated clean-up costs in excess of $25 million.



(b) No Consolidated Party has been notified of any material
action, suit, proceeding or investigation which calls into question compliance by any Consolidated Party with any Environmental Laws or which seeks to suspend, revoke or terminate any license, permit or approval necessary for the generation,
handling, storage, treatment or disposal of any Hazardous Material in any material respect of the Consolidated Parties taken as a whole.



6.17 Intellectual Property.



Each Consolidated Party owns, or has the legal right to use, all trademarks, tradenames, copyrights, technology, know-how and processes (the
Intellectual Property) necessary for each of them to conduct its business as currently conducted except for those the failure to own or have such legal right to use could not have a Material Adverse Effect.



6.18 Solvency.



Each Credit Party is and, after consummation of the transactions
contemplated by this Credit Agreement, will be Solvent.



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6.19 Investments.



All Investments of each Consolidated Party are Permitted Investments.



6.20 Disclosure.



Neither this Credit Agreement nor any financial statements delivered to the
Lenders nor any other document, certificate or statement furnished to the Lenders by or on behalf of any Consolidated Party in connection with the transactions contemplated hereby contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained therein or herein not misleading.



6.21 No Burdensome Restrictions.



No Consolidated Party is a party to any agreement or instrument or subject to any other obligation or any charter or corporate restriction or any
provision of any applicable law, rule or regulation which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.



6.22 Labor Matters.



There are no collective bargaining agreements or Multiemployer Plans covering the employees of a Consolidated Party as of the Closing Date and none of the
Consolidated Parties has suffered any strikes, walkouts, work stoppages or other material labor difficulty within the last five years.



6.23 Tax Shelter Regulations.



The Borrowers do not intend to treat the Loans and Letters of Credit and the transactions related thereto as being reportable transactions
(within the meaning of Treasury Regulation Section 1.6011-4). In the event any Borrower determines to take any action inconsistent with such intention, it will promptly notify the Administrative Agent thereof. If any Borrower so notifies the
Administrative Agent, the Borrowers acknowledge that one or more of the Lenders may treat its Loans and/or its interest in Swingline Loans and/or Letters of Credit as part of a transaction that is subject to Treasury Regulation Section 301.6112-1,
and such Lender or Lenders, as applicable, will maintain the lists and other records required by such Treasury Regulation.



6.24 Principal Offices.



Set forth on Schedule 6.24 is the chief executive office and principal place of business of each Credit Party. Schedule 6.24 may be updated
from time to time by the Borrowers by giving written notice thereof to the Administrative Agent.



SECTION 7



AFFIRMATIVE COVENANTS



Each Credit Party
hereby covenants and agrees that so long as this Credit Agreement is in effect or any amounts payable hereunder or under any other Credit Document shall remain outstanding, and until all of the Commitments hereunder shall have terminated:



7.1 Information Covenants.



The Principal Borrower will furnish, or cause to be furnished, to the
Administrative Agent for distribution to the Lenders:



(a) Annual Financial Statements. As soon as available, and in any event within 120 days after the close of each fiscal year of the Consolidated Parties, (i) a consolidated balance sheet and income statement of the Consolidated
Parties, as of the end of such fiscal year, together with related consolidated statements of



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operations and retained earnings and of cash flows for such fiscal year, setting forth in comparative form consolidated figures for the preceding fiscal
year, all such financial information described above to be in reasonable form and detail and audited by independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent and whose opinion
shall be to the effect that such financial statements have been prepared in accordance with GAAP (except for changes with which such accountants concur) and shall not be limited as to the scope of the audit or qualified as to the status of the
Consolidated Parties as a going concern, (ii) a schedule of the Properties summarizing total revenues, expenses, net operating income, Adjusted NOI, Annualized Adjusted NOI and occupancy rates as of the last day of the applicable fiscal year and
(iii) a projection of Capital Expenditures for the next fiscal year for each Property of a Consolidated Party.



(b) Quarterly Financial Statements. As soon as available, and in any event within 45 days after the close of each fiscal quarter of
the Consolidated Parties (other than the fourth fiscal quarter, in which case 120 days after the end thereof) (i) a consolidated balance sheet and income statement of the Consolidated Parties, as of the end of such fiscal quarter, together with
related consolidated statements of operations and retained earnings and of cash flows for such fiscal quarter in each case setting forth in comparative form consolidated figures for the corresponding period of the preceding fiscal year, all such
financial information described above to be in reasonable form and detail and reasonably acceptable to the Administrative Agent, and accompanied by a certificate of the chief financial officer of the Principal Borrower to the effect that such
quarterly financial statements fairly present in all material respects the financial condition of the Consolidated Parties and have been prepared in accordance with GAAP, subject to changes resulting from audit and normal year-end audit adjustments
and the omission of footnotes, (ii) a schedule of the Properties summarizing total revenues, expenses, net operating income, Adjusted NOI, Annualized Adjusted NOI and occupancy rates as of the last day of the applicable quarter, (iii) a listing of
all Properties Under Development showing the total capital obligation of the Credit Parties with respect to each such Property Under Development, funds expended to date in connection with each such Property Under Development and indicating whether
each such Property Under Development qualifies as a Build To Suit Property, (iv) a projection of Asset Dispositions for the next fiscal quarter for each Consolidated Party, (v) a summary of land purchases by the Credit Parties for the prior quarter
and (vi) a summary of all Net Cash Proceeds received by the Credit Parties during such fiscal quarter, together with a verification of the amount of such Net Cash Proceeds, in each case in form and detail satisfactory to the Administrative Agent.



(c) Officers Certificate. At the
time of delivery of the financial statements provided for in Sections 7.1(a) and 7.1(b) above, a certificate of the chief financial officer of the Principal Borrower substantially in the form of Exhibit 7.1(c), (i) demonstrating compliance,
as of the end of each such fiscal period, with (A) the financial covenants contained in Section 7.11, (B) the limitation on Investments contained in Section 7.11(j),(m) and (n), and (C) 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 detailed calculation thereof (which calculation shall be in form 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), (ii) stating that the Credit Parties were in compliance with each of the covenants set forth in Sections 7 and 8 of the Credit Agreement
at all times during such fiscal period and (iii) stating that, as of the end of each such fiscal period, no Default or Event of Default exists, or if any Default or Event of Default does exist, specifying the nature and extent thereof and what
action the Credit Parties propose to take with respect thereto. Prior to increasing the Applicable Percentage hereunder pursuant to the last sentence of the definition thereof, the Administrative Agent shall provide the Principal Borrower with
notice that it has not received a certificate due pursuant to this Section as of the applicable due date.



(d) Financial Projections. Commencing with the fiscal quarter ending as of June 30, 2003, as soon as available, and in any event
within 45 days after the end of every other fiscal quarter thereafter (or, in the case of a fiscal quarter in which such reporting is required and which coincides with the end of a fiscal year, 120 days), (i) a pro forma balance sheet and income
statement of the Consolidated Parties for each of the eight succeeding fiscal quarters, together with related pro forma consolidated statements of operations and of cash sources and uses for each such succeeding fiscal quarter and (ii) a certificate
of the chief financial officer of the Principal Borrower demonstrating compliance on a pro forma basis for each of the eight succeeding fiscal quarters with (A) the financial covenants contained in Section 7.11, (B) the limitation on Investments
contained



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in Section 7.11(j), (m) and (n), and (C) 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 detailed calculation thereof (which calculations shall be in form satisfactory to the Agent and which shall include, among other things, an explanation of the methodology used in such
calculations and a breakdown of the components of such calculations).



(e) Compliance With Certain Provisions of the Credit Agreement. Within 120 days after the end of each fiscal year of the Principal Borrower, a certificate of the chief financial officer of the Principal
Borrower containing information regarding the amount of all Equity Issuances that were made during the prior fiscal year.



(f) Accountants Certificate. Within the period for delivery of the annual financial statements provided in Section 7.1(a), a
certificate of the accountants conducting the annual audit stating that they have reviewed this Credit Agreement and stating further whether, in the course of their audit, they have become aware of any Default or Event of Default and, if any such
Default or Event of Default exists, specifying the nature and extent thereof.



(g) Auditors Reports. Promptly upon receipt thereof, a copy of any other report or management letter submitted by independent accountants to any Consolidated Party in connection with any
annual, interim or special audit of the books of such Person.



(h) Reports. Promptly, (i)(A) copies of any 10-K, 10-Q and S-4 filed (without exhibits unless such exhibits are requested by the Administrative Agent), (B) all other registration statements and prospectuses
sent to, or notices received from, the Securities and Exchange Commission, or any successor agency, as may be requested by the Administrative Agent, (C) all materials sent to or received from S&P, Moodys, any Third Rating Agency or any other
nationally recognized rating agency and (D) copies of all proxy statements as any Consolidated Party shall send to its shareholders or partners generally and (ii) upon the request of the Administrative Agent, all reports and written information to
and from the United States Environmental Protection Agency, or any state or local agency responsible for environmental matters, the United States Occupational Health and Safety Administration, or any state or local agency responsible for health and
safety matters, or any successor agencies or authorities concerning environmental, health or safety matters.



(i) Notices. Upon obtaining knowledge thereof, such Credit Party will give written notice to the Administrative Agent immediately
of (i) the occurrence of an event or condition consisting of a Default or Event of Default, specifying the nature and existence thereof and what action the Credit Parties propose to take with respect thereto, and (ii) the occurrence of any of the
following with respect to any Consolidated Party (A) the pendency or commencement of any litigation, arbitral or governmental proceeding against such Person which if adversely determined could reasonably be expected to have a Material Adverse Effect
or (B) the institution of any proceedings against such Person with respect to, or the receipt of notice by such Person of potential liability or responsibility for violation, or alleged violation of any federal, state or local law, rule or
regulation, including but not limited to, Environmental Laws, the violation of which could reasonably be expected to have a Material Adverse Effect.



(j) ERISA. Upon obtaining knowledge thereof, any Credit Party will give written notice to the Administrative Agent promptly (and in
any event within five business days) of: (i) of any event or condition, including, but not limited to, any Reportable Event, that constitutes, or might reasonably lead to, an ERISA Event; (ii) with respect to any Multiemployer Plan, the receipt of
notice as prescribed in ERISA or otherwise of any withdrawal liability assessed against the Borrowers or any of their ERISA Affiliates, or of a determination that any Multiemployer Plan is in reorganization or insolvent (both within the meaning of
Title IV of ERISA); (iii) the failure to make full payment on or before the due date (including extensions) thereof of all amounts which any Consolidated Party or any ERISA Affiliate is required to contribute to each Plan pursuant to its terms and
as required to meet the minimum funding standard set forth in ERISA and the Code with respect thereto; or (iv) any change in the funding status of any Plan, provided that the foregoing events individually or in combination could reasonably be
expected to have a Material Adverse Effect, together with a description of any such event or condition or a copy of any such notice and a statement by the chief financial officer of the Principal Borrower briefly setting forth the details regarding
such event, condition, or notice, and the action, if



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any, which has been or is being taken or is proposed to be taken by the Credit Parties with respect thereto. Promptly upon request, the Credit Parties shall
furnish the Administrative Agent and the Lenders with such additional information concerning any Plan as may be reasonably requested, including, but not limited to, copies of each annual report/return (Form 5500 series), as well as all schedules and
attachments thereto required to be filed with the Department of Labor and/or the Internal Revenue Service pursuant to ERISA and the Code, respectively, for each plan year (within the meaning of Section 3(39) of ERISA).



(k) Environmental.



(i) If the Administrative Agent requests in writing and if
(A) the Borrower does not have environmental insurance with respect to any property owned, leased or operated by a Credit Party or (B) the Administrative Agent has reason to believe that there exists on any property owned, leased or operated by a
Credit Party Hazardous Materials which materially affect the value of such property and with respect to which the Borrower has not furnished a report within the immediately previous twelve (12) month period, the Borrowers will furnish or cause to be
furnished to the Administrative Agent, at the Borrowers expense, a report of an environmental assessment of reasonable scope, form and depth, including, where appropriate, invasive soil or groundwater sampling, by a consultant reasonably
acceptable to the Administrative Agent as to the nature and extent of the presence of any Hazardous Materials on any such property and as to the compliance by the Credit Parties with Environmental Laws; provided that if there exists a continuing
default or Event of Default as of the date of the Administrative Agents written request for an environmental report pursuant to the terms of this Section 7.1(k)(i), the Borrower shall provide such report regardless of whether either of the
conditions set forth in subsections (A) and (B) of this Section 7.1(k)(i) has been satisfied. If the Borrowers fail to deliver such an environmental report within seventy-five (75) days after receipt of such written request then the Administrative
Agent may arrange for same, and the Credit Parties hereby grant to the Administrative Agent and their representatives access to the Properties and a license of a scope reasonably necessary to undertake such an assessment (including, where
appropriate, invasive soil or groundwater sampling).



(ii) Each Credit Party will conduct and complete all investigations, studies, sampling, and testing and all remedial, removal, and other actions necessary to address all Hazardous Materials on, from, or affecting any real property owned or
leased by a Credit Party to the extent necessary to be in compliance with all Environmental Laws and all other applicable federal, state, and local laws, regulations, rules and policies and with the orders and directives of all Governmental
Authorities exercising jurisdiction over such real property to the extent any failure could reasonably be expected to have a Material Adverse Effect.



(iii) Each Credit Party will promptly provide upon such Credit Partys receipt thereof all insurance certificate(s) evidencing the
environmental insurance held by any of the Consolidated Parties with respect to the Properties.



(l) Quarterly Stock Repurchase/Joinder Statements. As soon as available, and in any event, within forty-five (45) days after the
end of each fiscal quarter, a Quarterly Stock Repurchase/Joinder Statement. Attached to such Quarterly Stock Repurchase/Joinder Statement shall be (i) a certification from a Responsible Officer confirming that, as of the date of the Quarterly Stock
Repurchase/Joinder Statement, there exist no Subsidiaries that should be, but have not yet been, joined as Credit Parties and (ii) copies of all Joinder Agreements executed during the immediately preceding fiscal quarter.



(m) Other Information. With reasonable promptness
upon any such request, such other information regarding the business, insurance, properties or financial condition of any Consolidated Party as the Administrative Agent or the Required Lenders through the Administrative Agent may reasonably request.



(n) Reportable Transactions. Promptly
after any Borrower has notified the Administrative Agent of any intention by any Borrower to treat Loans and/or Letters of Credit and related transactions as being a reportable transaction (within the meaning of Treasury Regulation
Section 1.6011-4), a duly completed copy of IRS Form 8886 or any successor form.



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7.2 Preservation of Existence and Franchises.



Except as a result of or in connection with a merger of a Subsidiary
permitted by Section 8.4 or as a result of an Asset Disposition permitted by Section 8.17, each Credit Party will, and will cause each of its material Subsidiaries to, do all things necessary to preserve and keep in full force and effect its
existence, rights, franchises and authority. Highwoods Properties will maintain its status as a REIT.



7.3 Books and Records.



Each Credit Party will, and will cause each of its Subsidiaries to, keep complete and accurate books and records of its transactions in accordance with
good accounting practices on the basis of GAAP (including the establishment and maintenance of appropriate reserves).



7.4 Compliance with Law.



(a) Each Credit Party will, and will cause each of its Subsidiaries to, comply with all Environmental Laws, except to the extent any
violations thereof result in aggregate projected clean up costs (to all Credit Parties, collectively) of less than $25,000,000; provided, however, that to the extent any material violation of any Environmental Law results from an intentional,
willful or reckless act of any Credit Party or any of their Subsidiaries and any Environmental Law requires clean up or other remediation as a consequence of such violation, the Credit Parties or their Subsidiaries shall, upon obtaining knowledge of
such condition, diligently pursue such required clean up and/or other remediation.



(b) Each Credit Party will, and will cause each of its Subsidiaries to, comply with all other material laws, rules, regulations and
orders, and all applicable material restrictions imposed by all Governmental Authorities, applicable to it and its property.



7.5 Payment of Taxes and Other Indebtedness.



Each Credit Party will, and will cause each of its Subsidiaries to, pay and discharge (a) all taxes, assessments and governmental charges or levies
imposed upon it, or upon its income or profits, or upon any of its properties, before they shall become delinquent, and (b) all lawful claims (including claims for labor, materials and supplies) which, if unpaid, might give rise to a Lien upon any
of its properties; provided, however, that no Consolidated Party shall be required to pay any such tax, assessment, charge, levy, claim or Indebtedness which is being contested in good faith by appropriate proceedings and as to which
adequate reserves therefor have been established in accordance with GAAP, unless the failure to make any such payment could reasonably be expected to have a Material Adverse Effect.



7.6 Insurance.



Each Credit Party will, and will cause each of its Subsidiaries to, at all times maintain in full force and effect insurance (including workers
compensation insurance, liability insurance, environmental insurance, casualty insurance and business interruption insurance) in such amounts, covering such risks and liabilities and with such deductibles or self-insurance retentions as are in
accordance with normal industry practice. The present insurance coverage of the Consolidated Parties is outlined as to carrier, policy number, expiration date, type and amount on Schedule 7.6. Each such policy will require and the
certificates will state, that no such policy will be terminated without at least thirty (30) days prior written notice having been delivered to the Administrative Agent.



7.7 Maintenance of Property.



Each Credit Party will, and will cause each of its Subsidiaries to, maintain and preserve its properties and equipment in
good repair, working order and condition, normal wear and tear and casualty and condemnation excepted, and will make, or cause to be made, in such properties and equipment from time to time all repairs, renewals, replacements, extensions, additions,
betterments and improvements thereto as may be needed or proper, to the extent and in the manner customary for companies in similar businesses.



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7.8 Performance of Obligations.



Each Credit Party will, and will cause each of its Subsidiaries to, perform
in all material respects all of its obligations under the terms of all material agreements, indentures, mortgages, security agreements or other debt instruments to which it is a party or by which it is bound, except to the extent any failure to so
perform is not likely to result in a Material Adverse Effect.



7.9 Use of Proceeds.



The Borrowers
will use the proceeds of the Loans and will use the Letters of Credit solely for the purposes set forth in Section 6.15.



7.10 Audits/Inspections.



Upon reasonable notice and during normal business hours and in a manner that will not unreasonably interfere with its business operations, each Credit
Party will, and will cause each of its Subsidiaries to, permit representatives appointed by the Administrative Agent, including, without limitation, independent accountants, agents, attorneys, and appraisers to visit and inspect its property,
including its books and records, its accounts receivable and inventory, its facilities and its other business assets, and to make photocopies or photographs thereof and to write down and record any information such representative obtains and shall
permit the Administrative Agent or its representatives to investigate and verify the accuracy of information provided to the Lenders and to discuss all such matters with the officers, employees and representatives of such Person.



7.11 Financial Covenants.



(a) Total Liabilities to Total Assets. At all times,
the TL/TA Ratio shall be less than or equal to 0.575 to 1.00.



(b) Unencumbered Assets to Unsecured Debt. At all times, the ratio of (i) Unencumbered Assets to (ii) Unsecured Debt shall be greater than or equal to 2.00 to 1.00.



(c) Secured Debt to Total Assets. At all times, the
ratio of (i) Secured Debt to (ii) Total Assets shall be less than or equal to 0.35 to 1.00.



(d) Interest Coverage Ratio. At all times, the Interest Coverage Ratio shall be greater than 2.10 to 1.00.



(e) Fixed Charge Coverage Ratio. At all times the
Fixed Charge Coverage Ratio shall be greater than 1.55 to 1.00.



(f) Unsecured Debt Coverage Ratio. At all times, the ratio of (i) aggregate Adjusted NOI for all Properties contributing to the calculation of Unencumbered Assets for the twelve (12) month period immediately
preceding the last day of the calendar month most recently ended, (including, without limitation, (A) for Properties sold prior to the date of calculation, Adjusted NOI for such Properties during the applicable calculation period up to the date of
such sale, and (B) for Properties which drop out of the calculation of Unencumbered Assets prior to such date of calculation, Adjusted NOI for such Properties during the applicable calculation period up to the date on which such Property is no
longer considered for purposes of calculating Unencumbered Assets; provided, however, that Adjusted NOI for Properties first included in the calculation of Unencumbered Assets during the applicable calculation period shall be included only to the
extent received on or after the date on which such Property is included in the calculation of Unencumbered Assets) to (ii) Interest Expense paid on Unsecured Debt for the twelve (12) month period immediately preceding the last day of the calendar
month most recently ended, shall be greater than 2.25 to 1.0.



(g) Tangible Net Worth. At all times the Tangible Net Worth shall be greater than or equal to the sum of (i) $1,575,000,000.00, plus (ii) an amount equal to 85.0% of the Net Cash



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Proceeds received by the Consolidated Parties in connection with any Equity Issuance subsequent to the Closing Date calculated on a cumulative basis as of
the end of each fiscal quarter of the Consolidated Parties following the Closing Date, less (iii) (A) to the extent the aggregate Dollar amount paid by the Consolidated Parties for the purchase, redemption, retirement or acquisition of
Capital Stock of the Principal Borrower following the Closing Date is equal to or less than the Net Cash Proceeds received by the Consolidated Parties in connection with all Equity Issuances subsequent to the Closing Date (and calculated as set
forth above), an amount equal to 85.0% of the aggregate Dollar amount so paid by the Consolidated Parties for such purchase, redemption, retirement or acquisition, and (B) to the extent the aggregate Dollar amount paid by the Consolidated Parties
for the purchase, redemption, retirement or acquisition of Capital Stock of the Principal Borrower following the Closing Date is in excess of the Net Cash Proceeds received by the Consolidated Parties in connection with all Equity Issuances
subsequent to the Closing Date (and calculated as set forth above), 100.0% of such excess amount.



(h) Speculative Land to Total Assets. At all times, the ratio of (i) the value of all Speculative Land (as adjusted to deduct
therefrom the pro rata share of Speculative Land allocable to the Outside Interests) to (ii) Total Assets shall be less than or equal to 0.10 to 1.00.



(i) Budgeted Project Cost Ratios.



(i) At all times, the ratio of (A) the Budgeted Project Costs of all Properties Under Development (excludingBuild To Suit
Properties; and as adjusted to deduct therefrom the pro rata share of Properties Under Development allocable to the Outside Interests) to (B) Total Assets shall be less than or equal to 0.10 to 1.00.



(ii) At all times, the ratio of (A) the Budgeted Project
Costs of all Properties Under Development (including Build to Suit Properties; and as adjusted to deduct therefrom the pro rata share of Properties Under Development allocable to the Outside Interests) to (B) Total Assets shall be less than
or equal to 0.20 to 1.00.



(iii) At all
times, the ratio of (A) the sum of (1) the value of all Speculative Land (as adjusted to deduct therefrom the pro rata share of Speculative Land allocable to the Outside Interests) plus (2) the Budgeted Project Costs of all Properties Under
Development (including Build to Suit Properties; and as adjusted to deduct therefrom the pro rata share of Properties Under Development allocable to the Outside Interests) to (B) Total Assets shall be less than or equal to 0.25 to 1.00.



(j) Investment in Properties other than For Lease
Office and Industrial Properties. The Credit Parties will not permit any Consolidated Party to, directly or indirectly, acquire, develop or otherwise make an Investment in any properties other than for lease office and industrial properties
which in the aggregate shall exceed at any one time an amount greater than 10% of Total Assets.



(k) Restricted Payments. The Credit Parties will not permit the Consolidated Parties to, directly or indirectly, declare, order,
make or set apart any sum for or pay any Restricted Payments to the extent that, as of the end of the calendar quarter most recently ended, the aggregate Restricted Payments made during the period commencing as of (and including) April 1, 2003 and
extending through the end of such quarter is in excess of an amount equal to the greater of (i) the sum of (A) an amount equal to the amount of dividends required to be paid by Highwood Properties during such period to retain its status as a REIT
and to meet the distribution requirements of Section 857 of the Code, plus (B) $5,000,000 and (ii) ninety-five percent (95%) of the sum equal to (A) one hundred percent (100%) of Cash Available for Distribution for the date of calculation,
plus (B) 25% of Net Asset Sales Proceeds derived from sales of Speculative Land during such period, plus (C) 70% of Net Asset Sales Proceeds derived from sales of Properties of the Consolidated Parties not considered to be Speculative
Land during such period; provided, however, that, for purposes of calculating the amount set forth in subclause (ii), the amount added pursuant to items (B) and (C) thereof (the items concerning Net Asset Sales Proceeds) shall not



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exceed, in the aggregate, (1) for any calculation date during the period commencing as of the date hereof and ending as of the date 12 calendar months
thereafter, $50,000,000; (2) for any calculation date during the period commencing the day immediately following the date which is 12 calendar months following the date hereof and ending as of the date 24 calendar months following the date hereof,
$100,000,000; or (3) for any calculation date during the period commencing the day immediately following the date which is 24 calendar months following the date hereof and ending as of the date 36 calendar months following the date hereof,
$150,000,000.



(l) Purchases, Redemptions
and Retirements of Principal Borrower Capital Stock. The Principal Borrower may purchase, redeem, retire or otherwise acquire for value any shares of any class of Capital Stock of the Principal Borrower, provided, however, that the amount of all
such purchases, redemptions, retirements or payments shall not exceed in the aggregate the sum of (i) 75% of Net Asset Sales Proceeds derived from sales of Speculative Land, plus (y) 30% of Net Asset Sales Proceeds derived from sales of Properties
of the Consolidated Parties not considered to be Speculative Land, in each case for the period commencing as of July 1, 2002 and extending through the date of calculation.



(m) Investments in Non-Wholly Owned Subsidiaries. The Credit Parties will not permit the Borrowers or
any Wholly Owned Subsidiary that is a Credit Party to make any Investment in any Non-Wholly Owned Subsidiary that is a Credit Party except to the extent that the Adjusted Investment Value of such Investments does not exceed, in the aggregate at any
time outstanding, an amount equal to 15% of the sum of (i) Total Assets less (ii) an amount equal to the percentage of Total Assets represented by the Adjusted Investment Value of Investments made pursuant to Section 7.11(n).



(n) Investments in Non-Consolidated Parties. The
Credit Parties will not permit any Investments in any Person that is not a Consolidated Party except to the extent that the aggregate Adjusted Investment Value of all such Investments in all such Persons does not exceed 10% of Total Assets in the
aggregate at any one time outstanding.



7.12 Additional
Credit Parties.



If any Person 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 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 (a) 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, (b) 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 (c) 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. Notwithstanding
the foregoing, the Credit Parties shall be permitted to not cause a Subsidiary to execute a Joinder Agreement as provided above if either (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 excluded as Guarantors pursuant to subclause (A) plus the value of the total assets held by the applicable Subsidiary is less than $5,000,000.



7.13 Management.



Each of O. Temple Sloan, Ronald P. Gibson, Carman Liuzzo and Edward J.
Fritsch shall remain active in the management of Highwoods Properties; provided that upon the death, disability or retirement of any of the above-referenced individuals, Highwoods Properties shall have six months to provide the Administrative Agent
with



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substitute personnel as replacements; such substitute personnel to be acceptable to the Administrative Agent in its reasonable discretion.



7.14 Upstream of Excess Cash Flow.



Each Credit Party shall cause all Excess Cash Flow (as defined
below) of a 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 such
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.



7.15 Reporting of Certain Guaranty Obligations.



The Borrower shall, as of the Closing Date and from time to time as of each date on which an officers certificate is
required to be delivered pursuant to Section 7.1(c) hereof, deliver to the Administrative Agent in writing a complete list of all Guaranty Obligations of the Credit Parties described in clause (iv) of the definition of Guaranty Obligations and, for
each of such obligations, information as to (i) the amount of leasable space, per square foot rental rate and term applicable to such obligations, (ii) any leases or other revenue sources for which the Credit Parties receive credit towards such
obligations and (iii) any cash reserves being maintained in relation to such obligations and the method of calculation thereof.



7.16 Environmental Indemnity.



The Credit Parties agree that they will reimburse the Lenders for and hereby hold the Lenders harmless from all fines or penalties made or levied against
any of the Lenders by any Governmental Authority as a result of or in connection with (i) the use of Materials of Environmental Concern at the Properties, (ii) the use of Materials of Environmental Concern at the facilities thereon, or (iii) the
use, generation, storage, transportation, discharge, release or handling of any Materials of Environmental Concern at the Properties, or as a result of any release of any Materials of Environmental Concern onto the ground or into the water or air
from or upon the Properties at any time. The Credit Parties also agree that they will reimburse the Lenders for and indemnify and hold the Lenders harmless from any and all costs, expenses (including reasonably attorneys fees actually
incurred) and for all civil claims, judgments or penalties incurred entered, assessed, or levied against any of the Lenders as a result of any of the Credit Parties use of Materials of Environmental Concern at the Properties or as a result of
any release of any Materials of Environmental Concern on the ground or into the water or air by any of the Credit Parties from or upon the Properties. Such reimbursement or indemnification shall include but not be limited to any and all judgments or
penalties to recover the costs of cleanup of any such release by any of the Credit Parties from or upon Properties and all reasonable expenses incurred by the Lenders as a result of such a civil action, including but not limited to reasonable
attorneys fees. The Credit Parties obligations under this section shall survive the repayment of the Loans.



SECTION 8



NEGATIVE COVENANTS



Each Credit Party hereby covenants and agrees that, so long as this Credit Agreement is in effect or any amounts payable hereunder or under any other Credit Document shall remain outstanding, and until all of the
Commitments hereunder shall have terminated:



8.1
Indebtedness.



The Credit Parties will not permit
any Consolidated Party to contract, create, incur, assume or permit to exist any Indebtedness, except:



(a) Indebtedness arising under this Credit Agreement and the other Credit Documents;



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(b) Indebtedness set forth in Schedule 8.1 (and renewals, refinancings and
extensions thereof (i) on terms and conditions no less favorable to such Person than such existing Indebtedness or (ii) in the case such existing Indebtedness becomes unsecured, on terms and conditions consistent with then prevailing market
standards for such unsecured Indebtedness) and in a principal amount not in excess of that outstanding as of the date of such renewal, refinancing or extension;



(c) Indebtedness arising from obligations of the Credit Parties evidenced by the interest rate protection
agreements entered into in order to manage existing or anticipated interest rate or exchange rate risks and not for speculative purposes;



(d) Other unsecured Indebtedness;



(e) Other secured Indebtedness that is nonrecourse to any Credit Party (subject to normal and customary recourse carveouts in the ordinary
course of business); and



(f) Other secured
Indebtedness that is recourse to any Credit Party provided that such secured Indebtedness, in the aggregate, shall not exceed at any one time a principal amount greater than 5% of Total Assets.



8.2 Liens.



The Credit Parties will not permit any Consolidated Party to contract,
create, incur, assume or permit to exist any Lien with respect to any ownership interest in a Non-Guarantor Subsidiary.



8.3 Nature of Business.



Except as provided in Section 7.11(j), the Credit Parties will not permit the Consolidated Parties as a whole to substantially alter the character or
conduct of the business conducted by such Person as of the Closing Date.



8.4 Consolidation, Merger, Dissolution, etc.



The Credit Parties will not permit any Consolidated Party to enter into any transaction of merger or consolidation or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); provided
that, notwithstanding the foregoing provisions of this Section 8.4, (a) each of the Borrowers may merge or consolidate with any of its Subsidiaries so long as (i) such Borrower shall be the continuing or surviving entity and (ii) after giving effect
thereto no Default or Event of Default exists, (b) any Person may be merged or consolidated with or into Highwoods Properties so long as (i) Highwoods Properties is the continuing or surviving corporation and (ii) after giving effect thereto no
Default or Event of Default exists and (c) any Consolidated Party other than Highwoods Properties or a Borrower may merge or consolidate with any Person other than Highwoods Properties or a Borrower so long as the Person surviving such merger or
consolidation is or becomes a Credit Party pursuant to Section 7.12 hereof.



8.5 Intentionally Omitted



8.6 Investments.



The Credit Parties will not permit any Consolidated Party to lend money or extend credit or make advances to any Person or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital
contribution to, or otherwise make an Investment in any Person except for Permitted Investments.



8.7 Intentionally Omitted



8.8 Prepayments of Indebtedness, etc.



The Credit Parties will not permit any Consolidated Party to (a) if any Default or Event of Default has occurred and is continuing or would be directly or
indirectly caused as a result thereof, after the issuance thereof, amend or modify



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(or permit the amendment or modification of) any of the terms of any Indebtedness if such amendment or modification would add or change any terms in a manner
adverse to the issuer of such Indebtedness, or shorten the final maturity or average life to maturity or require any payment to be made sooner than originally scheduled or increase the interest rate applicable thereto or change any subordination
provision thereof, or (b) if any Default or Event of Default has occurred and is continuing or would be directly or indirectly caused as a result thereof, make (or give any notice with respect thereto) any voluntary or optional payment or prepayment
or redemption or acquisition for value of (including without limitation, by way of depositing money or securities with the trustee with respect thereto before due for the purpose of paying when due), refund, refinance or exchange of any other
Indebtedness.



8.9 Transactions with Affiliates.



The Credit Parties will not permit any Consolidated Party to
enter into or permit to exist any transaction or series of transactions, whether or not in the ordinary course of business, with any officer, director, shareholder, Subsidiary or Affiliate of such Person other than (i) transactions permitted by
Section 8.6, (ii) customary fees paid to directors in the ordinary course of business, (iii) the payment of compensation to employees and officers in the ordinary course of business, (iv) the creation of Preferred Stock Subsidiaries and (v) on terms
and conditions substantially as favorable to such Person as would be obtainable by it in a comparable arms-length transaction with a Person other than an officer, director, shareholder, Subsidiary or Affiliate.



8.10 Fiscal Year; Organizational Documents.



The Credit Parties will not permit any Consolidated Party to (a) change its
fiscal year without the prior written consent of the Required Lenders or (b) amend, modify or change its partnership agreement (other than a change limited solely to add additional limited partners or authorize the issuance of additional units) or
articles of incorporation (or corporate charter or other similar organizational document) or bylaws (or other similar document) in any manner that would reasonably be likely to adversely affect the rights of the Lenders in any material respect.



8.11 Limitation on Restricted Actions.



Without providing prior written notice to the Administrative
Agent, the Credit Parties will not permit any Consolidated Party to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Person to (a) pay dividends or
make any other distributions to any Credit Party on its Capital Stock or with respect to any other interest or participation in, or measured by, its profits, (b) pay any Indebtedness or other obligation owed to any Credit Party, (c) make loans or
advances to any Credit Party or (d) sell, lease or transfer any of its properties or assets to any Credit Party, except (in respect of any of the matters referred to in clauses (a) through (d) above) for such encumbrances or restrictions existing
under or by reason of this Credit Agreement and the other Credit Documents.



8.12 Ownership of Subsidiaries.



Notwithstanding any other provisions of this Credit Agreement to the contrary, the Credit Parties will not permit any Consolidated Party other than Highwoods Properties, Highwoods Realty or any Preferred Stock
Subsidiary to issue any shares of preferred Capital Stock to any Person other than a Credit Party. Furthermore, Highwoods Realty and Highwoods Properties shall at all times maintain ownership, directly or indirectly, all of the Capital Stock of AP
Southeast Portfolio Partners, L.P., a Delaware limited partnership, AP-GP Southeast Portfolio Partners, L.P., a Delaware limited partnership and Highwoods Realty GP Corp., a Delaware corporation.



8.13 Sale Leasebacks.



Except as could not reasonably be expected to have a Material Adverse
Effect, the Credit Parties will not permit any Consolidated Party to, directly or indirectly, become or remain liable as lessee or as guarantor or other surety with respect to any lease, whether an Operating Lease or a Capital Lease, of any property
(whether real or personal or mixed), whether now owned or hereafter acquired, (a) which such Consolidated Party has sold or transferred or is to sell or transfer to a Person which is not a Consolidated Party or (b) which such Consolidated Party
intends to use for substantially the same purpose as any other property which has been sold or is to be sold or transferred by such Consolidated Party to another Person which is not a Consolidated Party in connection with such lease.



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8.14 No Further Negative Pledges.



The Credit Parties will not permit any Consolidated Party to enter into,
assume or become subject to any agreement prohibiting or otherwise restricting the creation or assumption of any Lien upon its properties or assets, whether now owned or hereafter acquired, or requiring the grant of any security for such obligation
if security is given for some other obligation except pursuant to any document or instrument governing Indebtedness incurred pursuant to Section 8.1(b), Section 8.1(e) or Section 8.1(f), provided that any such restriction contained therein
relates only to the properties or assets constructed or acquired in connection with such Indebtedness.



8.15 Non-Guarantor Subsidiaries.



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 new Indebtedness other than Indebtedness in respect of current accounts payable and accrued expenses incurred in the ordinary course of business, (c) purchasing or acquiring any new assets or (d) incurring any
change in its ownership.



8.16 Intentionally
Omitted.



8.17 Asset Dispositions.



The Credit Parties will not permit any Consolidated Party to
make any Asset Disposition in which the value of the assets sold or otherwise disposed pursuant to such Asset Disposition exceeds $30,000,000 unless the Principal Borrower shall have delivered to the Administrative Agent at least two (2) Business
Days prior to such Asset Disposition a Pro Forma Compliance Certificate demonstrating that, upon giving effect to such Asset Disposition, on a pro forma basis the Credit Parties shall be in compliance with all of the covenants contained in Section
7.11.



SECTION 9



EVENTS OF DEFAULT



9.1 Events of Default.



An Event of Default shall exist upon the occurrence of any of the following
specified events (each an Event of Default):



(a) Payment. Any Credit Party shall



(i) default in the payment when due of any principal of any of the Loans or of any reimbursement obligations arising from drawings under Letters of Credit, or



(ii) default, and such default shall continue for three (3)
or more Business Days, in the payment when due of any interest on the Loans or on any reimbursement obligations arising from drawings under Letters of Credit, or of any Fees or other amounts owing hereunder, under any of the other Credit Documents
or in connection herewith or therewith; or



(b) Representations. Any representation, warranty or statement made or deemed to be made by any Credit Party herein, in any of the other Credit Documents, or in any statement or certificate delivered or required to be delivered
pursuant hereto or thereto shall prove untrue in any material respect on the date as of which it was made or deemed to have been made; or



(c) Covenants. Any Credit Party (or the Credit Parties collectively) shall



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(i) default in the due performance or observance of any term, covenant or agreement
contained in Sections 7.2, 7.4(a), 7.9, 7.11, 7.12 or 8.1 through 8.17, inclusive; or



(ii) default in the due performance or observance of any term, covenant or agreement contained in Sections 7.1(a), (b) (c) or (d) and such
default shall continue unremedied for a period of at least 5 days after the earlier of a Responsible Officer of a Credit Party becoming aware of such default or notice thereof by the Administrative Agent; or



(iii) default in the due performance or observance by it of
any term, covenant or agreement (other than those referred to in subsections (a), (b), (c)(i) or (c)(ii) of this Section 9.1) contained in this Credit Agreement and such default shall continue unremedied for a period of at least 30 days after the
earlier of a responsible officer of a Credit Party becoming aware of such default or notice thereof by the Administrative Agent; or



(d) Other Credit Documents. (i) Any Credit Party shall default in the due performance or observance of any term, covenant or
agreement in any of the other Credit Documents (subject to applicable grace or cure periods, if any), or (ii) any Credit Document shall fail to be in full force and effect or to give the Administrative Agent and/or the Lenders the rights, powers and
privileges purported to be created thereby, or any Credit Party shall so state in writing; or



(e) Guaranties. The guaranty given by any Guarantor hereunder (including any Additional Credit Party) or any provision thereof
shall cease to be in full force and effect, or any Guarantor (including any Additional Credit Party) hereunder or any Person acting by or on behalf of such Guarantor shall deny or disaffirm such Guarantors obligations under such guaranty, or
any Guarantor shall default in the due performance or observance of any term, covenant or agreement on its part to be performed or observed pursuant to any guaranty; or



(f) Bankruptcy, etc. Any Bankruptcy Event shall occur with respect to any Consolidated Party; or



(g) Defaults under Other Agreements.



(i) Any Consolidated Party shall default in
the performance or observance (beyond the applicable grace period with respect thereto, if any) of any obligation or condition of any contract or lease of such Consolidated Party such that the default would have a Material Adverse Effect; or



(ii) With respect to any Indebtedness (other
than Indebtedness outstanding under this Credit Agreement) in excess of $7,500,000 in the aggregate for the Consolidated Parties taken as a whole, (A) any Consolidated Party shall (1) default in any payment (beyond the applicable grace period with
respect thereto, if any) with respect to any such Indebtedness, or (2) the occurrence and continuance of a default in the observance or performance relating to such Indebtedness or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event or condition shall occur or condition exist, the effect of which default or other event or condition is to cause, or permit, the holder or holders of such Indebtedness (or trustee or Administrative Agent on
behalf of such holders) to cause (determined without regard to whether any notice or lapse of time is required), any such Indebtedness to become due prior to its stated maturity; or (B) any such Indebtedness shall be declared due and payable, or
required to be prepaid other than by a regularly scheduled required prepayment, prior to the stated maturity thereof. The events set forth in this Section 9.1(g)(ii) shall constitute an immediate Event of Default notwithstanding any cure period that
would be otherwise applicable with respect to such event pursuant to the terms of this Credit Agreement (including, without limitation, cure periods provided with respect to violations of Section 7.5).



(h) Judgments. One or more judgments or decrees shall
be entered against one or more of the Consolidated Parties involving a liability of $5,000,000 or more in the aggregate (to the extent not paid or fully covered by insurance provided by a carrier who has acknowledged coverage and has the ability to
perform) and



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any such judgments or decrees shall not have been vacated, discharged or stayed or bonded pending appeal within 30 days from the entry thereof; or



(i) ERISA. (i) One or more ERISA
Events occur with respect to Pension Plans or Multiemployer Plans which have resulted or could reasonably be expected to result in liability of any Credit Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an
aggregate amount in excess of $5,000,000.00 or to otherwise have a Material Adverse Effect, or (ii) any Credit Party or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with
respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $5,000,000.00; or



(j) Ownership. There shall occur a Change of Control.



9.2 Acceleration; Remedies.



Upon the occurrence of an Event of Default, and at any time thereafter unless and until such Event of Default has been
waived by the Required Lenders or all of the Lenders, as applicable (pursuant to the voting requirements of Section 11.6) or cured to the satisfaction of the Required Lenders or all of the Lenders, as applicable (pursuant to the voting procedures in
Section 11.6), the Administrative Agent shall, upon the request and direction of the Required Lenders, by written notice to the Credit Parties take any of the following actions:



(a) Termination of Commitments. Declare the Commitments terminated whereupon the Commitments shall be
immediately terminated.



(b)
Acceleration. Declare the unpaid principal of and any accrued interest in respect of all Loans, any reimbursement obligations arising from drawings under Letters of Credit and any and all other indebtedness or obligations of any and every
kind owing by the Borrowers to the Administrative Agent and/or any of the Lenders hereunder to be due whereupon the same shall be immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrowers.



(c) Cash
Collateral. Direct the Borrowers to pay (and the Borrowers agree that upon receipt of such notice, or upon the occurrence of an Event of Default under Section 9.1(f), it will immediately pay) to the Administrative Agent additional cash, to be
held by the Administrative Agent, for the benefit of the Lenders, in a cash collateral account as additional security for the LOC Obligations in respect of subsequent drawings under all then outstanding Letters of Credit in an amount equal to the
maximum aggregate amount which may be drawn under all Letters of Credits then outstanding.



(d) Enforcement of Rights. Enforce any and all rights and interests created and existing under the Credit Documents and all rights
of set-off.



Notwithstanding the foregoing, if an Event of
Default specified in Section 9.1(f) shall occur, then the Commitments shall automatically terminate and all Loans, all reimbursement obligations arising from drawings under Letters of Credit, all accrued interest in respect thereof, all accrued and
unpaid Fees and other indebtedness or obligations owing to the Administrative Agent and/or any of the Lenders hereunder automatically shall immediately become due and payable without the giving of any notice or other action by the Administrative
Agent or the Lenders.



SECTION 10



AGENCY PROVISIONS



10.1 Appointment, Powers and Immunities; Delegation of Duties;
Liability of Agents.



(a) Each Lender hereby
irrevocably appoints and authorizes the Administrative Agent to act as its Administrative Agent under this Credit Agreement and the other Credit Documents with such powers and discretion as are specifically delegated to the Administrative Agent by
the terms of this Credit Agreement and the



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other Credit Documents, together with such other powers as are reasonably incidental thereto. The Administrative Agent (which term as used in this sentence
and in Section 10.5 and the first sentence of Section 10.6 hereof shall include its Affiliates and its own and its Affiliates officers, directors, employees, and Administrative Agents): (a) shall not have any duties or responsibilities except
those expressly set forth in this Credit Agreement and shall not be a trustee or fiduciary for any Lender; (b) shall not be responsible to the Lenders for any recital, statement, representation, or warranty (whether written or oral) made in or in
connection with any Credit Document or any certificate or other document referred to or provided for in, or received by any of them under, any Credit Document, or for the value, validity, effectiveness, genuineness, enforceability, or sufficiency of
any Credit Document, or any other document referred to or provided for therein or for any failure by any Credit Party or any other Person to perform any of its obligations thereunder; (c) shall not be responsible for or have any duty to ascertain,
inquire into, or verify the performance or observance of any covenants or agreements by any Credit Party or the satisfaction of any condition or to inspect the property (including the books and records) of any Credit Party or any of its Subsidiaries
or Affiliates; (d) shall not be required to initiate or conduct any litigation or collection proceedings under any Credit Document; and (e) shall not be responsible for any action taken or omitted to be taken by it under or in connection with any
Credit Document, except for its own gross negligence or willful misconduct. The Administrative Agent may employ agents and attorneys-in-fact and shall not be responsible for the negligence or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. Without limiting the generality of the foregoing sentence, the use of the term agent herein and in the other Credit Documents with reference to the Administrative Agent is not intended to connote any
fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between
independent contracting parties.



(b) The Issuing Lender shall
act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the Issuing Lender shall have all of the benefits and immunities (i) provided to the Administrative Agent in this Section 10
with respect to any acts taken or omissions suffered by the Issuing Lender in connection with Letters of Credit issued by it or proposed to be issued by it and the applications and agreements for letters of credit pertaining to such Letters of
Credit as fully as if the term Administrative Agent as used in this Section 10 and in the definition of Agent-Related Person included the Issuing Lender with respect to such acts or omissions, and (ii) as additionally
provided herein with respect to the Issuing Lender.



(c) The
Administrative Agent may execute any of its duties under this Agreement or any other Credit Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all
matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.



(d) No Agent-Related Person shall (i) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Agreement or any other Credit Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct in connection with its duties expressly set
forth herein), or (ii) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Credit Party or any officer thereof, contained herein or in any other Credit Document, or in any
certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Credit Document, or the validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Credit Document, or for any failure of any Credit Party or any other party to any Credit Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under
any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Credit Document, or to inspect the properties, books or
records of any Credit Party or any Affiliate thereof.



10.2
Reliance by Administrative Agent.



(a) The
Administrative Agent shall be entitled to rely upon any certification, notice, instrument, writing, or other communication (including, without limitation, any thereof by telephone or telecopy) believed by it to be genuine and correct and to have
been signed, sent or made by or on behalf of the proper Person or Persons, and



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upon advice and statements of legal counsel (including counsel for any Credit Party), independent accountants, and other experts selected by the
Administrative Agent. The Administrative Agent may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and until the Administrative Agent receives and accepts an Assignment and Acceptance executed in accordance
with Section 11.3(b) hereof. As to any matters not expressly provided for by this Credit Agreement, the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting
(and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding on all of the Lenders; provided, however, that the Administrative Agent shall
not be required to take any action that exposes the Administrative Agent to personal liability or that is contrary to any Credit Document or applicable law or unless it shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking any such action.



(b) For purposes of determining compliance with the conditions specified in Section 5.1, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied
with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.



10.3 Defaults.



The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of a Default or Event of Default (other than nonpayment of principal of or interest on the Loans) unless the Administrative Agent has received written notice from a Lender or one of the Borrowers specifying such
Default or Event of Default and stating that such notice is a Notice of Default. In the event that the Administrative Agent receives such a notice of the occurrence of a Default or Event of Default, the Administrative Agent shall give
prompt notice thereof to the Lenders. The Administrative Agent shall (subject to Section 10.2 hereof) take such action with respect to such Default or Event of Default as shall reasonably be directed by the Required Lenders, provided
that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interest of the Lenders.



10.4 Rights as a Lender.



With respect
to its Commitment and the Loans made by it, Bank of America (and any successor acting as Administrative Agent) in its capacity as a Lender hereunder shall have the same rights and powers hereunder as any other Lender and may exercise the same as
though it were not acting as the Administrative Agent, and the term Lender or Lenders shall, unless the context otherwise indicates, include the Administrative Agent in its individual capacity. Bank of America (and any
successor acting as Administrative Agent) and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory,
underwriting or other business with each of the Credit Parties and their respective Affiliates as though Bank of America were not the Administrative Agent, Swingline Lender or the Issuing Lender hereunder and without notice to or consent of the
Lenders, and Bank of America (and any successor acting as Administrative Agent) and its Affiliates may accept fees and other consideration from any Credit Party or any of its Subsidiaries or Affiliates for services in connection with this Credit
Agreement or otherwise without having to account for the same to the Lenders. The Lenders acknowledge that, pursuant to such activities, Bank of America or its Affiliates may receive information regarding any Credit Party or its Affiliates
(including information that may be subject to confidentiality obligations in favor of such Credit Party or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to them.



10.5 Indemnification.



The Lenders agree to indemnify the Administrative Agent only in its capacity
as Administrative Agent (to the extent not reimbursed under Section 11.5 hereof, but without limiting the obligations of the Borrowers under such Section) ratably in accordance with their respective Commitments, for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys fees), or disbursements of



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any kind and nature whatsoever that may be imposed on, incurred by or asserted against the Administrative Agent (including by any Lender) in any way relating
to or arising out of any Credit Document or the transactions contemplated thereby or any action taken or omitted by the Administrative Agent under any Credit Document; provided that no Lender shall be liable for any of the foregoing to the
extent they arise from the gross negligence or willful misconduct of the Person to be indemnified. Without limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any costs
or expenses payable by the Borrowers under Section 11.5, to the extent that the Administrative Agent is not promptly reimbursed for such costs and expenses by the Borrowers. The agreements in this Section 10.5 shall survive the repayment of the
Loans, LOC Obligations and other obligations under the Credit Documents and the termination of the Commitments hereunder.



10.6 Non-Reliance on Administrative Agent and Other Lenders.



Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by the
Administrative Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of any Credit Party or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related
Person to any Lender as to any matter, including whether Agent-Related Persons have disclosed material information in their possession. Each Lender represents to the Administrative Agent that it has, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the
Credit Parties and their respective Subsidiaries, and all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Borrower
hereunder. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Credit Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and
other condition and creditworthiness of the Borrower and the other Credit Parties. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent herein, the Administrative Agent shall
not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Credit Parties or any of their
respective Affiliates which may come into the possession of any Agent-Related Person.



10.7 Successor Administrative Agent.



The Administrative Agent may resign at any time by giving notice thereof to the Lenders and the Principal Borrower. The Administrative Agent may be removed at any time with cause by the Required Lenders, provided that
the Principal Borrower and the other Lenders shall be promptly notified thereof. Upon any such resignation or removal, the Required Lenders shall have the right to appoint a successor Administrative Agent with the consent of the Borrower, such
consent not to be unreasonably withheld or delayed; provided, however, that the Borrower shall have no right to consent to such appointment to the extent an Event of Default is continuing at the time of such appointment. If no successor
Administrative Agent shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agents giving of notice of resignation or the Required Lenders
removal, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a commercial bank organized or licensed under the laws of the United States of America having combined capital and
surplus of at least $100,000,000. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor, such successor shall thereupon succeed to and become vested with all the rights, powers, discretion, privileges, and duties of
the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. After any retiring Administrative Agents resignation or removal hereunder as Administrative Agent, the
provisions of this Section 10 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Administrative Agent.



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10.8 Administrative Agent May File Proofs of Claim.



In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or LOC Obligation shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrowers) shall be entitled and empowered, by intervention in such proceeding or otherwise



(a) to file and prove a claim for the whole amount of the
principal and interest owing and unpaid in respect of the Loans, LOC Obligations and all other Credit Party Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the
Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders
and the Administrative Agent under this Agreement) allowed in such judicial proceeding; and



(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;



and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to
pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under this Agreement.



Nothing contained herein shall be deemed to authorize the Administrative Agent
to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in
respect of the claim of any Lender in any such proceeding.



10.9 Other Agents; Arrangers and Managers.



None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a syndication agent, documentation agent, co-agent, book manager, lead
manager, arranger, lead arranger or co-arranger shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than, in the case of such Lenders, those applicable to
all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely,
on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.



10.10 Administrative Agents Commitment.



The Revolving Commitment of the Administrative Agent shall, at all times prior to the termination of the Commitments hereunder, be equal to or greater
than the lesser of (a) $10,000,000.00; and (b) the highest Revolving Commitment of any one of the other Lenders.



SECTION 11



MISCELLANEOUS



11.1 Notices.



Except as otherwise
expressly provided herein, all requests, notices and other communications shall have been duly given and shall be effective (a) when delivered, (b) when transmitted via telecopy (or other facsimile device) to the



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number set out below, (c) the Business Day following the day on which the same has been delivered prepaid to a reputable national overnight air courier
service, or (d) the third Business Day following the day on which the same is sent by certified or registered mail, postage prepaid, in each case to the respective parties at the address, in the case of the Borrowers, Guarantors and the
Administrative Agent, set forth below, and, in the case of the Lenders, set forth on Schedule 2.1(a), or at such other address as such party may specify by written notice to the other parties hereto:



if to the Borrowers:



Highwoods Properties, Inc.

3100 Smoketree Court, Suite 600

Raleigh, North Carolina 27604

Attn: Carman Liuzzo

Telephone: (919) 875-6605

Telecopy: (919) 876-6929



if to
a Guarantor:



[Name of Guarantor]

c/o Highwoods Realty Limited Partnership

3100 Smoketree Court, Suite 600

Raleigh, North Carolina 27604

Attn: Carman Liuzzo

Telephone: (919) 875-6605

Telecopy: (919) 876-6929



if to the Administrative Agent:



Bank of America, N.A.

Real Estate Department

901 Main Street

TX1-492-14-11

Dallas, Texas 75202

Attn: Donna Kimbrough

Telephone: (214) 209-1569

Telecopy: (214) 290-9436



with
a copy to:



Bank of America, N.A.

901 Main Street

Dallas, Texas 75202-3714

Attn: William T. Bowers, Jr.

Telephone: (214) 209-0276

Telecopy: (214) 209-0995



Notwithstanding
anything contained herein to the contrary, to the extent a Lender or any Credit Party is given written notice of any request for an approval, consent or other decision from the Administrative Agent and such Person fails to reply to any such request
within ten (10) Business Days of its receipt (or deemed receipt) thereof, such Lender or Credit Party shall be deemed to have approved the requested action, amendment, waiver or other matter.



11.2 Right of Set-Off; Adjustments.



Upon the occurrence and during the continuance of any Event of Default, each
Lender (and each of its Affiliates) is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held
and other indebtedness at any time owing by such Lender (or any of its Affiliates) to or for the credit or the account of any



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Credit Party against any and all of the obligations of such Person now or hereafter existing under this Credit Agreement, under the Notes, under any other
Credit Document or otherwise, irrespective of whether such Lender shall have made any demand under hereunder or thereunder and although such obligations may be unmatured. Each Lender agrees promptly to notify any affected Credit Party after any such
set-off and application made by such Lender; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender under this Section 11.2 are in addition to
other rights and remedies (including, without limitation, other rights of set-off) that such Lender may have.



11.3 Benefit of Agreement; Assignments.



(a) This Credit Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of
the parties hereto; provided that none of the Credit Parties may assign or transfer any of its interests and obligations without prior written consent of the Lenders; provided further that the rights of each Lender to
transfer, assign or grant participations in its rights and/or obligations hereunder shall be limited as set forth in this Section 11.3.



(b) Each Lender may assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Credit Agreement
(including, without limitation, all or a portion of its Loans, its Notes, and its Commitment); provided, however, that



(i) each such assignment shall be to an Eligible Assignee;



(ii) except in the case of an assignment to another Lender or an assignment of all of a Lenders rights
and obligations under this Credit Agreement, any such partial assignment shall be in an amount at least equal to $2,500,000 or an integral multiple of $1,000,000 in excess thereof;



(iii) each such assignment by a Lender shall be of a constant, and not varying, percentage of all of its
rights and obligations under this Credit Agreement and the Notes; and



(iv) the parties to such assignment shall execute and deliver to the Administrative Agent for its acceptance an Assignment and Acceptance in the form of Exhibit 11.3(b) hereto, together with any Note subject to
such assignment and a processing fee of $3,500.



Upon
execution, delivery, and acceptance of such Assignment and Acceptance, the assignee thereunder shall be a party hereto and, to the extent of such assignment, have the obligations, rights, and benefits of a Lender hereunder and the assigning Lender
shall, to the extent of such assignment, relinquish its rights and be released from its obligations under this Credit Agreement. Upon the consummation of any assignment pursuant to this Section 11.3(b), the assignor, the Administrative Agent and the
Borrowers shall make appropriate arrangements so that, if required, new Notes are issued to the assignor and the assignee. If the assignee is not incorporated under the laws of the United States of America or a state thereof, it shall deliver to the
Principal Borrower and the Administrative Agent certification as to exemption from deduction or withholding of Taxes in accordance with Section 3.11.



(c) The Administrative Agent shall maintain at its address referred to in Section 11.1 a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Loans owing to, each Lender from time to time (the Register). The entries in the
Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this
Credit Agreement. The Register shall be available for inspection by the Borrowers or any Lender at any reasonable time and from time to time upon reasonable prior notice.



(d) Upon its receipt of an Assignment and Acceptance executed by the parties thereto, together with any Note
subject to such assignment and payment of the processing fee, the Administrative Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of



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Exhibit 11.3(b) hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt
notice thereof to the parties thereto.



(e)
Each Lender may sell participations to one or more Persons in all or a portion of its rights, obligations or rights and obligations under this Credit Agreement (including all or a portion of its Commitment or its Loans); provided,
however, that (i) such Lenders obligations under this Credit Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) the participant
shall be entitled to the benefit of the yield protection provisions contained in Sections 3.7 through 3.12, inclusive, and the right of set-off contained in Section 11.2, and (iv) the Borrowers shall continue to deal solely and directly with such
Lender in connection with such Lenders rights and obligations under this Credit Agreement, and such Lender shall retain the sole right to enforce the obligations of the Borrowers relating to its Loans and its Notes and to approve any
amendment, modification, or waiver of any provision of this Credit Agreement (other than amendments, modifications, or waivers decreasing the amount of principal of or the rate at which interest is payable on such Loans or Notes, extending any
scheduled principal payment date or date fixed for the payment of interest on such Loans or Notes, or extending its Commitment).



(f) Notwithstanding any other provision set forth in this Credit Agreement, any Lender may at any time assign and pledge all or any
portion of its Loans and its Notes to any Federal Reserve Bank as collateral security pursuant to Regulation A and any Operating Circular issued by such Federal Reserve Bank. No such assignment shall release the assigning Lender from its obligations
hereunder.



(g) Any Lender may furnish any
information concerning the Borrowers or any of their Subsidiaries in the possession of such Lender from time to time to assignees and participants (including prospective assignees and participants), subject, however, to the provisions of Section
11.14 hereof.



11.4 No Waiver; Remedies
Cumulative.



No failure or delay on the part of the
Administrative Agent or any Lender in exercising any right, power or privilege hereunder or under any other Credit Document and no course of dealing between the Administrative Agent or any Lender and any of the Credit Parties shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Credit Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or
thereunder. The rights and remedies provided herein are cumulative and not exclusive of any rights or remedies which the Administrative Agent or any Lender would otherwise have. No notice to or demand on any Credit Party in any case shall entitle
the Borrowers or any other Credit Party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent or the Lenders to any other or further action in any circumstances
without notice or demand.



11.5 Expenses;
Indemnification.



(a) The Borrowers
agree to pay on demand all costs and expenses of the Administrative Agent in connection with the syndication, preparation, execution, delivery, administration, modification, and amendment of this Credit Agreement, the other Credit Documents, and the
other documents to be delivered hereunder, including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent actually incurred with respect thereto and with respect to advising the Administrative Agent as to its
rights and responsibilities under the Credit Documents. The Borrowers further agree to pay on demand all costs and expenses of the Administrative Agent and the Lenders, if any (including, without limitation, reasonable attorneys fees and
expenses actually incurred), in connection with the enforcement (whether through negotiations, legal proceedings, or otherwise) of the Credit Documents and the other documents to be delivered hereunder.



(b) The Borrowers agree to indemnify and hold harmless the
Administrative Agent and each Lender and each of their Affiliates and their respective officers, directors, employees, agents, and advisors (each, an Indemnified Party) from and against any and all claims, damages, losses,
liabilities, costs, and expenses (including, without limitation, reasonable attorneys fees) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of



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(including, without limitation, in connection with any investigation, litigation, or proceeding or preparation of defense in connection therewith) the Credit
Documents, any of the transactions contemplated herein or the actual or proposed use of the proceeds of the Loans, except to the extent such claim, damage, loss, liability, cost, or expense is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted from such Indemnified Partys gross negligence or willful misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 11.5 applies, such indemnity
shall be effective whether or not such investigation, litigation or proceeding is brought by a Borrower, its directors, shareholders or creditors or an Indemnified Party or any other Person or any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are consummated. The Borrowers agree not to assert any claim against the Administrative Agent, any Lender, any of their Affiliates, or any of their respective directors, officers, employees,
attorneys, agents, and advisers, on any theory of liability, for special, indirect, consequential, or punitive damages arising out of or otherwise relating to the Credit Documents, any of the transactions contemplated herein or the actual or
proposed use of the proceeds of the Loans.



(c) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the agreements and obligations of the Borrowers contained in this Section 11.5 shall survive the repayment of the Loans, LOC Obligations and other
obligations under the Credit Documents and the termination of the Commitments hereunder.



11.6 Amendments, Waivers and Consents.



Neither this Credit Agreement nor any other Credit Document nor any of the terms hereof or thereof may be amended, changed, waived, discharged or terminated unless such amendment, change, waiver, discharge or
termination is in writing and entered into by, or approved in writing by, the Required Lenders and the Principal Borrower, provided, however, that:



(a) without the consent of each Lender affected thereby, neither this Credit Agreement nor any of the other Credit Documents
may be amended, supplemented or modified to



(i) extend the final maturity of any Loan or the time of payment of any reimbursement obligation, or any portion thereof, arising from drawings under Letters of Credit,



(ii) reduce the rate or extend the time of payment of interest (other than as a result of waiving the
applicability of any post-default increase in interest rates) thereon or Fees hereunder,



(iii) reduce or waive the principal amount of any Loan or of any reimbursement obligation, or any portion thereof, arising from drawings
under Letters of Credit,



(iv) increase
the Commitment of a Lender over the amount thereof in effect (it being understood and agreed that a waiver of any Default or Event of Default or mandatory reduction in the Commitments shall not constitute a change in the terms of any Commitment of
any Lender),



(v) release (i) any
Borrower, or (ii) except as permitted by Section 8.17, any other Credit Party, from its or their obligations under the Credit Documents,



(vi) amend, modify or waive any provision of this Section 11.6 or 3.13, 3.14, 3.15(b), 9.1(a), 11.2, 11.5 or 11.9,



(vii) reduce any percentage specified in, or
otherwise modify, the definition of Required Lenders and Supermajority Lenders, or



(viii) consent to the assignment or transfer by any Borrower (or another Credit Party) of any of its rights and obligations under (or in
respect of) the Credit Documents except as permitted thereby;



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(b) without the consent of the Supermajority Lenders, no provision of Section 7.11(a) or the definitions
utilized therein may be amended, modified, supplemented or deleted;



(c) without the consent of the Administrative Agent, no provision of Section 10 may be amended, modified, supplemented or deleted; and



(d) without the consent of the Issuing Lender, no provision of Section 2.3 may be amended modified, supplemented or deleted.



Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (x) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy
Code supersedes the unanimous consent provisions set forth herein and (y) the Required Lenders may consent to allow a Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding.



The Administrative Agent shall have the exclusive authority to release any
Guarantor disposed of by a Credit Party in accordance with the terms of Section 8.17 and shall, upon the written request of the Borrowers, release any such Guarantor upon the disposition thereof if such Guarantor is permitted to be disposed of
pursuant to Section 8.17. The Administrative Agent shall give notice to each Lender promptly upon any release of a Guarantor pursuant to the terms of this Section 11.6.



11.7 Counterparts.



This Credit Agreement 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 Credit Agreement 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 Credit Agreement 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.



11.8 Headings.



The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning or construction of any provision of this Credit Agreement.



11.9 Survival.



All indemnities set forth herein, including, without limitation, in Section 2.2(h), 3.11, 3.12, 10.5 or 11.5 shall survive the execution and delivery of
this Credit Agreement, the making of the Loans, the issuance of the Letters of Credit, the repayment of the Loans, LOC Obligations and other obligations under the Credit Documents and the termination of the Commitments hereunder, and all
representations and warranties made by the Credit Parties herein shall survive delivery of the Notes and the making of the Loans hereunder.



11.10 Governing Law; Submission to Jurisdiction; Venue.



(a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA. Any legal action or proceeding with respect to this Credit Agreement or any other Credit Document may be brought
in the courts of the State of North Carolina in Mecklenburg County, or of the United States for the Western District of North Carolina, and, by execution and delivery of this Credit Agreement, each of the Credit Parties hereby irrevocably accepts
for itself and in respect of its property, generally and unconditionally, the nonexclusive jurisdiction of such courts. Each of the Credit Parties further irrevocably consents to the service of process out of any of the aforementioned courts in any
such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to it at the address set out for notices pursuant to Section 11.1, such service to become effective three (3) days after such



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mailing. Nothing herein shall affect the right of the Administrative Agent or any Lender to serve process in any other manner permitted by law or to commence
legal proceedings or to otherwise proceed against any Credit Party in any other jurisdiction.



(b) Each of the Credit Parties hereby irrevocably waives any objection which it may now or hereafter have to the laying of venue of any of
the aforesaid actions or proceedings arising out of or in connection with this Credit Agreement or any other Credit Document brought in the courts referred to in subsection (a) above and hereby further irrevocably waives and agrees not to plead or
claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum.



(c) TO THE EXTENT PERMITTED BY LAW, EACH OF THE ADMINISTRATIVE AGENT, THE LENDERS, THE BORROWERS AND THE CREDIT PARTIES HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY.



11.11 Severability.



If any provision of any of the Credit Documents 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.



11.12 Entirety.



This Credit Agreement together with the other Credit Documents represent the
entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Credit Documents or the transactions contemplated
herein and therein.



11.13 Binding Effect;
Termination.



(a) This Credit
Agreement shall become effective at such time when all of the conditions set forth in Section 5.1 have been satisfied or waived by the Lenders and it shall 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 each Lender, 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.



(b) The term of this Credit Agreement shall be until no Loans, LOC Obligations or any other amounts payable hereunder or under any of the
other Credit Documents shall remain outstanding, no Letters of Credit shall be outstanding, all of the Credit Party Obligations have been irrevocably satisfied in full and all of the Commitments hereunder shall have expired or been terminated.



11.14 Confidentiality.



Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent requested by any regulatory authority (including any
self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; (d) to any other party to this Agreement; (e) in
connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an
agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations



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under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or to any credit derivative transaction relating to the
Credit Parties and their obligations; (g) with the consent of the Borrower; and (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative
Agent or any Lender on a nonconfidential basis from a source other than the Credit Parties. For purposes of this Section, Information means all information received from any Credit Party relating to any Credit Party or any of
their respective business, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Credit Party; provided that, in the case of information received from
a Credit Party after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. Notwithstanding anything herein to the contrary,
Information shall not include, and the Administrative Agent and each Lender (and each employee, representative, or other agent of the Administrative Agent and each Lender) may disclose to any and all Persons without limitation of any
kind, any information with respect to the tax treatment and tax structure (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind
(including options or other tax analyses) that are provided to the Administrative Agent or such Lender (and each employee, representative, or other agent of the Administrative Agent or such Lender) relating to such tax treatment and tax structure;
provided, that with respect to any document or similar item that in either case contains information concerning the tax treatment or tax structure of the transaction as well as other information, this sentence shall only apply to such
portions of the document or similar item that relate to the tax treatment or tax structure of the Loans, Letters of Credit and other transactions contemplated hereby.



11.15 Conflict.



To the extent that there is a conflict or inconsistency between any provision hereof, on the one hand, and any provision of any Credit Document, on the
other hand, this Credit Agreement shall control.



11.16
Amendment and Restatement; No Novation.



THE
PARTIES HERETO HAVE ENTERED INTO THIS AGREEMENT SOLELY TO AMEND AND RESTATE THE TERMS OF THE 2000 CREDIT AGREEMENT. THE PARTIES DO NOT INTEND THIS AGREEMENT NOR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AGREEMENT AND THE TRANSACTION
CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY ANY OF THE CREDIT PARTIES UNDER OR IN CONNECTION WITH THE 2000 CREDIT AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS (AS DEFINED IN THE 2000 CREDIT
AGREEMENT).



[Signature Page to Follow]



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



|BORROWERS: |  |  |  | HIGHWOODS REALTY LIMITED PARTNERSHIP
|---------- |  |  |  | ------------------------------------
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|GUARANTORS: |  | HIGHWOODS/FLORIDA GP CORP.
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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 PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.RC ONE LLCBy: HIGHWOODS SERVICES, INC.HPI TITLE AGENCY, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.ALAMEDA TOWERS DEVELOPMENT COMPANYCHALLENGER, INCGUARDIAN MANAGEMENT, INC.HIGHWOODS/CYPRESS COMMONS LLCBy: AP SOUTHEAST PORTFOLIO PARTNERS, L.P.By: AP-GP SOUTHEST 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 LLCBy: HIGHWOODS/ FLORIDA HOLDINGS, L.P.By: HIGHWOODS/FLORIDA GP CORP.PLAZA GIFT CARD, LLCBy: HIGHWOOD SERVICES, INC.HIGHWOODS NON-ORLANDO, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.HIGHWOODS CONSTRUCTION SERVICES, LLCBy: HIGHWOOD SERVICES, INC.




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HIGHWOODS DLF, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.HIGHWOODS DLF II, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.PAPEC RICHMOND II, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.PAPEC WESTON I, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.PAPEC WESTON II, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.PAPEC WESTON III, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.HARBORVIEW PLAZA, LLCBy: HIGHWOODS/FLORIDA HOLDINGS, L.P.By: HIGHWOODS/FLORIDA,GP CORP.SPI BROOKFIELD I, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.SPI BROOKFIELD II, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.SPI BUSINESS HOLDINGS, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.SPI CENTURY PLAZA III, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.SPI JEFFERSON VILLAGE, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.SPI TRADEPORT OFFICE III, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.




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SPI RALEIGH CORPORATE CENTER, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.HIGHWOODS COLONNADE, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.SPI TRADEPORT PLACE V, LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.HIWTP, LLCBy: HIGHWOODS SERVICES, INC.HIGHWOODS INDUSTRIAL VIRGINIA, LLCBy: HIGHWOODS SERVICES, INC.HIGHWOODS INDUSTRIAL NORTH CAROLINA, LLCBy: HIGHWOODS SERVICES, INC.GROVE PARK SQUARE, LLCBy: HIGHWOODS SERVICES, INC.HIGHWOODS WELLNESS CENTER, LLCBy: HIGHWOODS SERVICES, INC.HIGHWOODS 3322, LLCBy: HIGHWOODS/FLORIDA HOLDINGS, L.P.By: HIGHWOODS/FLORIDA GP CORP.NICHOLS PLAZA WEST, INC.OZARK MOUNTAIN VILLAGE, INC.4551 COX ROAD LLCBy: HIGHWOODS REALTY LIMITED PARTNERSHIPBy: HIGHWOODS PROPERTIES, INC.581 HIGHWOODS, L.P.By: HIGHWOODS/FLORIDA HOLDINGS, L.P.By: HIGHWOODS/FLORIDA GP CORP.By:

/s/ Ronald P. GibsonName: Ronald P. Gibson Title: President and Chief Executive Officer




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|LENDERS/AGENTS: |  |  |  | BANK OF AMERICA, N.A., individually in its capacity as a Lender and in its capacity as Administrative Agent
|--------------- |  |  |  | -----------------------------------------------------------------------------------------------------------
|                |  |  | 
|                |  |  |  |                                                                                                            
|                |  |  |  |                                                                                                            
|                |  |  |  |                                                                                                            
|                |  | 
|                |  |  |  | BANC OF AMERICA SECURITIES LLC, individually in its capacity as Sole Lead Arranger and Sole Book Manager   
|                |  |  | 
|                |  |  |  |                                                                                                            
|                |  |  |  |                                                                                                            
|                |  |  |  |                                                                                                            



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WELLS FARGO BANK, NATIONAL ASSOCIATION individually in its capacity as a Lender and in its capacity as Syndication AgentBy:        /s/    John
S. MisiuraName:           John S.
MisiuraTitle:             Vice President




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BRANCH BANKING AND TRUST COMPANY individually in its capacity as a Lender and as a Co-Documentation AgentBy:        /s/    Holger
B. EbertName:           Holger B.
EbertTitle:             Senior Vice President




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FLEET NATIONAL BANK individually in its capacity as a Lender and as a Co-Documentation AgentBy:        /s/    Kathleen M. AhernName:           Kathleen M.
AhernTitle:             Director




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WACHOVIA BANK, NATIONAL ASSOCIATION individually in its capacity as a LenderBy:        /s/    David
HoaglandName:           David
HoaglandTitle:             Vice President




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PNC BANK, NATIONAL ASSOCIATION individually in its capacity as a LenderBy:        /s/    William R. Lynch IIIName:           William R.
Lynch IIITitle:             Senior Vice President




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AMSOUTH BANK individually in its capacity as a LenderBy:        /s/    Lee
SurteesName:           Lee
SurteesTitle:             Commercial Banking Officer




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SOUTHTRUST BANK individually in its capacity as a LenderBy:        /s/    Sidney
ClappName:           Sidney
ClappTitle:             Assistant Vice President




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RBC CENTURA BANK individually in its capacity as a LenderBy:        /s/    Robert
E. Hammersley, Jr.Name:           Robert E.
Hammersley, Jr.Title:             Bank Officer




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UNION PLANTERS BANK individually in its capacity as a LenderBy:        /s/    James
R. GummelName:           James R.
GummelTitle:             Senior Vice President




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