Document:

Exhibit 10.5

 

	
   

  	
  Published CUSIP Number: 64805FAC3

  

 

 

FIRST AMENDED AND RESTATED
SECURED TERM LOAN AGREEMENT

 

BY AND AMONG

 

NEW PLAN EXCEL REALTY TRUST,
INC.,

 

THE LENDERS PARTY HERETO,

 

BANK OF AMERICA, N.A.,

 

AS ADMINISTRATIVE AGENT, AND

 

BANC OF AMERICA SECURITIES LLC,
AS SOLE LEAD ARRANGER

 

AND SOLE BOOK MANAGER,

 

THE BANK OF NEW YORK

 

AS SYNDICATION AGENT,

 

KEYBANK NATIONAL ASSOCIATION

 

AS DOCUMENTATION AGENT, AND

 

PNC BANK, NATIONAL ASSOCIATION

 

AND

 

SUNTRUST BANK, AS CO-MANAGING
AGENTS

 

Dated as of JUNE 29, 2004

 

 

	
  1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Defined
  Terms

  	
   

  
	
   

  	
  1.2

  	
  Other Interpretive Provisions

  	
   

  
	
   

  	
  1.3

  	
  Accounting
  Terms

  	
   

  
	
   

  	
  1.4

  	
  Rounding

  	
   

  
	
   

  	
  1.5

  	
  Times of
  Day

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  AMOUNT AND TERMS OF LOANS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Loans

  	
   

  
	
   

  	
  2.2

  	
  Notes

  	
   

  
	
   

  	
  2.3

  	
  Procedure for Loan
  Borrowings

  	
   

  
	
   

  	
  2.4

  	
  Intentionally Omitted

  	
   

  
	
   

  	
  2.5

  	
  Intentionally Omitted

  	
   

  
	
   

  	
  2.6

  	
  Repayment of
  Loans; Evidence of Debt

  	
   

  
	
   

  	
  2.7

  	
  Prepayments of the Loans

  	
   

  
	
   

  	
  2.8

  	
  Conversions

  	
   

  
	
   

  	
  2.9

  	
  Interest Rate and
  Payment Dates

  	
   

  
	
   

  	
  2.10

  	
  Substituted Interest Rate

  	
   

  
	
   

  	
  2.11

  	
  Taxes; Net Payments

  	
   

  
	
   

  	
  2.12

  	
  Illegality

  	
   

  
	
   

  	
  2.13

  	
  Increased
  Costs

  	
   

  
	
   

  	
  2.14

  	
  Indemnification
  for Break Funding Losses

  	
   

  
	
   

  	
  2.15

  	
  Use
  of Proceeds

  	
   

  
	
   

  	
  2.16

  	
  Capital
  Adequacy

  	
   

  
	
   

  	
  2.17

  	
  Administrative Agent’s
  Records

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  FEES; PAYMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Fees

  	
   

  
	
   

  	
  3.2

  	
  Payments; Application
  of Payments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Existence and Power

  	
   

  
	
   

  	
  4.2

  	
  Authority

  	
   

  
	
   

  	
  4.3

  	
  Binding
  Agreement

  	
   

  
	
   

  	
  4.4

  	
  Subsidiaries;
  DownREIT Partnerships

  	
   

  
	
   

  	
  4.5

  	
  Litigation

  	
   

  
	
   

  	
  4.6

  	
  Required
  Consents

  	
   

  
	
   

  	
  4.7

  	
  No Conflicting Agreements

  	
   

  
	
   

  	
  4.8

  	
  Compliance with
  Applicable Laws

  	
   

  
	
   

  	
  4.9

  	
  Taxes

  	
   

  
	
   

  	
  4.10

  	
  Governmental Regulations

  	
   

  
	
   

  	
  4.11

  	
  Federal
  Reserve Regulations; Use of Loan Proceeds

  	
   

  
	
   

  	
  4.12

  	
  Plans; Multiemployer Plans

  	
   

  
	
   

  	
  4.13

  	
  Financial Statements

  	
   

  

 

 

	
   

  	
  4.14

  	
  Property

  	
   

  
	
   

  	
  4.15

  	
  Franchises,
  Intellectual Property, Etc

  	
   

  
	
   

  	
  4.16

  	
  Environmental Matters

  	
   

  
	
   

  	
  4.17

  	
  Labor
  Relations

  	
   

  
	
   

  	
  4.18

  	
  Setoff

  	
   

  
	
   

  	
  4.19

  	
  Solvency

  	
   

  
	
   

  	
  4.20

  	
  REIT Status

  	
   

  
	
   

  	
  4.21

  	
  List of Unencumbered Assets

  	
   

  
	
   

  	
  4.22

  	
  Operation of Business

  	
   

  
	
   

  	
  4.23

  	
  No Misrepresentation

  	
   

  
	
   

  	
  4.24

  	
  Anti-Terrorism Laws

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  CONDITIONS TO EFFECTIVENESS
  OF THIS AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Evidence of Action

  	
   

  
	
   

  	
  5.2

  	
  This
  Agreement

  	
   

  
	
   

  	
  5.3

  	
  Notes

  	
   

  
	
   

  	
  5.4

  	
  Guaranty

  	
   

  
	
   

  	
  5.5

  	
  Security Documents

  	
   

  
	
   

  	
  5.6

  	
  Instruction Letter

  	
   

  
	
   

  	
  5.7

  	
  Litigation

  	
   

  
	
   

  	
  5.8

  	
  Opinion of Counsel
  to the Borrower

  	
   

  
	
   

  	
  5.9

  	
  Fees

  	
   

  
	
   

  	
  5.10

  	
  Fees and Expenses
  of Special Counsel

  	
   

  
	
   

  	
  5.11

  	
  Compliance

  	
   

  
	
   

  	
  5.12

  	
  Loan
  Closing

  	
   

  
	
   

  	
  5.13

  	
  Documentation and
  Proceedings

  	
   

  
	
   

  	
  5.14

  	
  Required Acts and
  Conditions

  	
   

  
	
   

  	
  5.15

  	
  Approval of Special Counsel

  	
   

  
	
   

  	
  5.16

  	
  Other
  Documents

  	
   

  
	
   

  	
  5.17

  	
  Loan to
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  COLLATERAL SECURITY; RESTRICTED
  INTERESTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Collateral

  	
   

  
	
   

  	
  6.2

  	
  Substitution
  or Addition of Restricted Interests

  	
   

  
	
   

  	
  6.3

  	
  Sale of a Subject Property

  	
   

  
	
   

  	
  6.4

  	
  Release of Collateral
  Interest

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Financial Statements

  	
   

  
	
   

  	
  7.2

  	
  Certificates; Other
  Information

  	
   

  
	
   

  	
  7.3

  	
  Legal
  Existence

  	
   

  
	
   

  	
  7.4

  	
  Taxes

  	
   

  
	
   

  	
  7.5

  	
  Insurance

  	
   

  
	
   

  	
  7.6

  	
  Payment
  of Indebtedness and Performance of Obligations

  	
   

  
	
   

  	
  7.7

  	
  Maintenance
  of Property; Environmental Investigations

  	
   

  
	
   

  	
  7.8

  	
  Observance of Legal
  Requirements

  	
   

  

 

 

	
   

  	
  7.9

  	
  Inspection
  of Property; Books and Records; Discussions

  	
   

  
	
   

  	
  7.10

  	
  Licenses, Intellectual
  Property

  	
   

  
	
   

  	
  7.11

  	
  Additional Guarantors

  	
   

  
	
   

  	
  7.12

  	
  REIT Status;
  Operation of Business

  	
   

  
	
   

  	
  7.13

  	
  More Restrictive Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Liens

  	
   

  
	
   

  	
  8.2

  	
  Merger,
  Consolidation and Certain Dispositions of Property

  	
   

  
	
   

  	
  8.3

  	
  Investments, Loans, Etc

  	
   

  
	
   

  	
  8.4

  	
  Business
  Changes

  	
   

  
	
   

  	
  8.5

  	
  Amendments to
  Organizational Documents

  	
   

  
	
   

  	
  8.6

  	
  Intentionally Omitted

  	
   

  
	
   

  	
  8.7

  	
  Sale and Leaseback

  	
   

  
	
   

  	
  8.8

  	
  Transactions with
  Affiliates

  	
   

  
	
   

  	
  8.9

  	
  Issuance
  of Additional Capital Stock by Subsidiary Guarantors

  	
   

  
	
   

  	
  8.10

  	
  Hedging Agreements

  	
   

  
	
   

  	
  8.11

  	
  Restricted Payments

  	
   

  
	
   

  	
  8.12

  	
  Unencumbered Assets
  Coverage Ratio

  	
   

  
	
   

  	
  8.13

  	
  Fixed Charge Coverage Ratio

  	
   

  
	
   

  	
  8.14

  	
  Minimum Tangible Net Worth

  	
   

  
	
   

  	
  8.15

  	
  Maximum Total Indebtedness

  	
   

  
	
   

  	
  8.16

  	
  Indebtedness
  to Unencumbered Assets Ratio

  	
   

  
	
   

  	
  8.17

  	
  Maximum Book
  Value of Ancillary Assets

  	
   

  
	
   

  	
  8.18

  	
  Development Activity

  	
   

  
	
   

  	
  8.19

  	
  Debt Service Coverage

  	
   

  
	
   

  	
  8.20

  	
  Restricted Interests Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  DEFAULT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Events
  of Default

  	
   

  
	
   

  	
  9.2

  	
  Default
  under Subject Property Loan Documents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  THE AGENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Appointment and Authority

  	
   

  
	
   

  	
  10.2

  	
  Rights
  as a Lender

  	
   

  
	
   

  	
  10.3

  	
  Exculpatory Provisions

  	
   

  
	
   

  	
  10.4

  	
  Reliance by
  Administrative Agent

  	
   

  
	
   

  	
  10.5

  	
  Notice
  of Default

  	
   

  
	
   

  	
  10.6

  	
  Delegation of Duties

  	
   

  
	
   

  	
  10.7

  	
  Indemnification

  	
   

  
	
   

  	
  10.8

  	
  Successor Administrative
  Agent

  	
   

  
	
   

  	
  10.9

  	
  Non-Reliance
  on Administrative Agent and Other Lenders

  	
   

  
	
   

  	
  10.10

  	
  No Other Duties, Etc

  	
   

  
	
   

  	
  10.11

  	
  Administrative
  Agent May File Proofs of Claim

  	
   

  
	
   

  	
  10.12

  	
  Collateral and Guaranty
  Matters

  	
   

  

 

 

	
  11.

  	
  OTHER PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Amendments and Waivers

  	
   

  
	
   

  	
  11.2

  	
  Notices

  	
   

  
	
   

  	
  11.3

  	
  No Waiver; Cumulative
  Remedies

  	
   

  
	
   

  	
  11.4

  	
  Survival of
  Representations and Warranties

  	
   

  
	
   

  	
  11.5

  	
  Payment of Expenses and
  Taxes

  	
   

  
	
   

  	
  11.6

  	
  Lending
  Offices

  	
   

  
	
   

  	
  11.7

  	
  Successors and Assigns

  	
   

  
	
   

  	
  11.8

  	
  [Intentionally Omitted]

  	
   

  
	
   

  	
  11.9

  	
  Counterparts;
  Integration; Effectiveness

  	
   

  
	
   

  	
  11.10

  	
  Adjustments; Set-off

  	
   

  
	
   

  	
  11.11

  	
  Lenders’ Representations

  	
   

  
	
   

  	
  11.12

  	
  Indemnity

  	
   

  
	
   

  	
  11.13

  	
  Governing
  Law

  	
   

  
	
   

  	
  11.14

  	
  Headings Descriptive

  	
   

  
	
   

  	
  11.15

  	
  Severability

  	
   

  
	
   

  	
  11.16

  	
  [Intentionally Omitted]

  	
   

  
	
   

  	
  11.17

  	
  Consent to Jurisdiction

  	
   

  
	
   

  	
  11.18

  	
  Service of Process

  	
   

  
	
   

  	
  11.19

  	
  No Limitation on
  Service or Suit

  	
   

  
	
   

  	
  11.20

  	
  WAIVER OF TRIAL BY JURY

  	
   

  
	
   

  	
  11.21

  	
  Termination

  	
   

  
	
   

  	
  11.22

  	
  Replacement
  Notes

  	
   

  
	
   

  	
  11.23

  	
  USA PATRIOT Act Notice:

  	
   

  
	
   

  	
  11.24

  	
  Replacement of Lenders

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  RELATIONSHIP

  	
   

  

 

 

LIST OF EXHIBITS AND SCHEDULES

 

	
  EXHIBITS:

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Assignment and Assumption

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Commitments and Domestic LIBOR Lending
  Offices

  
	
   

  	
   

  	
   

  
	
  Exhibit C-1

  	
  -

  	
  Equity Interests Owners and Equity
  Interests Properties

  
	
   

  	
   

  	
   

  
	
  Exhibit C-2

  	
  -

  	
  Distributions Interests Owners and
  Distributions Interests Properties

  
	
   

  	
   

  	
   

  
	
  Exhibit C-3

  	
  -

  	
  Additional Interests Owners and Additional
  Interests Properties

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Compliance Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Instruction Letter

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Guaranty

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  [Intentionally Omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  -

  	
  Note

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  -

  	
  Secretary’s Certificate Borrower

  
	
   

  	
   

  	
   

  
	
  Exhibit J

  	
  -

  	
  Secretary’s Certificate Guarantor

  
	
   

  	
   

  	
   

  
	
  Exhibit K

  	
  -

  	
  Secretary’s Certificate Assignor

  
	
   

  	
   

  	
   

  
	
  Exhibit L

  	
  -

  	
  [Intentionally Omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit M

  	
  -

  	
  Form of Notice of Conversion

  
	
   

  	
   

  	
   

  
	
  Exhibit N

  	
  -

  	
  [Intentionally Omitted]

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  
	
   

  	
   

  	
   

  
	
  Schedule 4.4

  	
  -

  	
  Subsidiaries (including Subsidiary
  Guarantors)

  
	
   

  	
   

  	
   

  
	
  Schedule 4.5

  	
  -

  	
  Litigation

  
	
   

  	
   

  	
   

  
	
  Schedule 4.12

  	
  -

  	
  Plans

  
	
   

  	
   

  	
   

  
	
  Schedule 4.21

  	
  -

  	
  List of Unencumbered Assets

  

 

 

FIRST AMENDED AND RESTATED SECURED TERM LOAN
AGREEMENT, dated as of June 29, 2004, by and among NEW PLAN EXCEL REALTY
TRUST, INC., a Maryland corporation (the “Borrower”), each lender party hereto
or which becomes a “Lender” pursuant to the provisions of Section 11.7
(each a “Lender” and, collectively, the “Lenders”), and BANK OF AMERICA, N.A.
(“Bank of America”), as administrative agent for the Lenders (in such capacity,
the “Administrative Agent”).

 

RECITALS

 

WHEREAS, Borrower and Fleet National Bank,
individually and as administrative agent (“FNB”), entered into that certain
Secured Term Loan Agreement dated as of September 29, 2003 (the “Original
Loan Agreement”);

 

WHEREAS, FNB, individually and as
administrative agent, assigned all of its rights and obligations under the
Original Loan Agreement to Bank of America, individually and as Administrative
Agent;

 

WHEREAS, Borrower has requested that the
Lenders and Administrative Agent increase the Total Commitment Amount (as
defined in the Original Loan Agreement) from $100,000,000.00 to $150,000,000.00
and to amend certain provisions of the Original Loan Agreement; and

 

WHEREAS, in connection therewith,
Administrative Agent, Borrower and the Lenders desire to amend and restate the
Original Loan Agreement in its entirety;

 

NOW, THEREFORE, in consideration of the
recitals herein and the mutual covenants contained herein, the parties hereto
hereby amend and restate the Original Loan Agreement in its entirety as
follows:

 

1.                                       DEFINITIONS.

 

1.1                                 Defined Terms. 
As used in this Agreement, terms defined in the preamble have the
meanings therein indicated, and the following terms have the following
meanings:

 

“Account Agreement”:  the First Amended and Restated Account
Security, Pledge, Assignment and Control Agreement dated of even date herewith
among Borrower, the Administrative Agent, for the benefit of the Lenders, and
FNB, as depository bank with respect to the payment of the Excess Funds to the
Deposit Account, as the same may be modified, amended or restated from time to
time.

 

“Accountants”:  any of PricewaterhouseCoopers LLP; Deloitte
& Touche LLP; Ernst & Young LLP; KPMG LLP; or any successor to any of
the foregoing; or such other firm of certified public accountants selected by
the Borrower and satisfactory to the Administrative Agent.

 

“Account”:  that certain account maintained by Account Bank, designated as
account number 0013-9010-0211 and any replacement account hereafter established
by Borrower pursuant to the Account Agreement.

 

 

“Account Bank”:  initially, Bank of America, and any
subsequent or replacement holder of the Account pursuant to the Account
Agreement.

 

“Acknowledgments”:  collectively, the Acknowledgments executed
by the Companies and the Subsidiaries of the Companies in favor of the
Administrative Agent, for the benefit of Lenders, as the same may be modified,
amended or restated from time to time.

 

“Additional Interests”:  collectively, one hundred percent (100%) of
the Borrower’s direct or indirect ownership interests in a Subject Property,
other than interests constituting Collateral Interests.

 

“Additional Interests Owners”:  collectively, Borrower, the Subsidiaries of
Borrower set forth on Exhibit C-3 and any other Subsidiary of Borrower
that becomes an Additional Interests Owner after the date hereof pursuant to
Section 6.2 hereof.

 

“Additional Interests Properties”:  collectively, the Subject Properties owned
by the Additional Interests Owners more particularly described on Exhibit
C-3 and any other Subject Property owned by an Additional Interest Owner
which becomes an Additional Interests Property after the date hereof pursuant
to Section 6.2.

 

“Additional Interests Subsidiaries”:  collectively, the Subsidiaries of Borrower
that are Additional Interests Owners.

 

“Adjusted Consolidated Total Assets”:  determined on a Consolidated basis in
accordance with GAAP for Borrower and its Subsidiaries, the sum (without
duplication) of the following:

 

(i)                                     the
Operating Property Value; plus

 

(ii)                                  the
book value of Land Assets, Redevelopment Assets, New Construction Assets and
Notes Receivable of Borrower and its Subsidiaries (including, without
limitation, all capitalized costs incurred in connection therewith) on the last
day of the fiscal quarter just ended; plus

 

(iii)                               to
the extent not included pursuant to (ii) above, Borrower’s pro rata share of
the book value of Land Assets, New Construction Assets, Redevelopment Assets
and Notes Receivable of Joint Ventures (including, without limitation, all
capitalized costs incurred in connection therewith) on the last day of the
fiscal quarter just ended; plus

 

(iv)                              the
aggregate amount of the unpledged portion of (x) all unrestricted cash and
marketable securities of Borrower and its Subsidiaries (including, without
limitation, Investments described in Sections 8.3(a) through 8.3(f)) plus
(y) all restricted cash held by any Person serving as a “qualified
intermediary” for purposes of an exchange pursuant to Section 1031 of the
Code on behalf of Borrower or any of its Subsidiaries.

 

Adjusted Consolidated Total Assets shall be
calculated on a pro forma basis as if assets acquired during the relevant
period were owned as of the beginning of the relevant period, and all

 

2

 

assets disposed of during the relevant period were not owned during any
portion of the relevant period.

 

“Adjusted Net Operating Income”:  for any period, the aggregate amount of the
Net Operating Income from each Unencumbered Asset or Operating Property, as
applicable, during such period, less the Capital Expense Reserve for such
Unencumbered Asset or Operating Property, as applicable, during such period.

 

“Administrative Agent’s Office”:  the Administrative Agent’s address as set
forth in Section 11.2, or such other address as the Administrative Agent
may from time to time notify to the Borrower and the Lenders.

 

“Administrative Questionnaire”:  an Administrative Questionnaire in a form
supplied by the Administrative Agent.

 

“Advance”:  a Prime Rate Loan or a LIBOR Loan, as the case may be.

 

“Affected Advance”:  as defined in Section 2.10.

 

“Affected Principal Amount”:  in the event that (i) the Borrower shall
fail for any reason to borrow or convert after it shall have notified the
Administrative Agent of its intent to do so in any instance in which it shall
have requested a LIBOR Loan on the Effective Date or pursuant to
Section 2.8, an amount equal to the principal amount of such LIBOR Loan;
(ii) a LIBOR Loan shall terminate for any reason prior to the last day of the
Interest Period applicable thereto, an amount equal to the principal amount of
such LIBOR Loan; or (iii) the Borrower shall prepay or repay all or any part of
the principal amount of a LIBOR Loan prior to the last day of the Interest
Period applicable thereto (including, without limitation, any mandatory
prepayment or a prepayment resulting from acceleration or illegality), an
amount equal to the principal amount of such LIBOR Loan so prepaid or repaid.

 

“Affiliate”:  as to any Person, any other Person which, directly or indirectly,
is in control of, is controlled by, or is under common control with, such
Person.  For purposes of this
definition, control of a Person shall mean the power, direct or indirect, (i)
to vote 10% or more of the securities having ordinary voting power for the
election of directors of such Person or (ii) to direct or cause the direction
of the management and policies of such Person, whether by contract or
otherwise.

 

“Agreement”:  this First Amended and Restated Secured Term Loan Agreement, as
the same may be amended, supplemented or otherwise modified from time to time.

 

“Agreement Regarding Fees”:  that certain Agreement Regarding Fees dated
of even date herewith between Bank of America and the Borrower.

 

“Ancillary Assets”:  at any time (without duplication), (a) all
Real Property of the Borrower and its Subsidiaries which is (i) a mortgage,
(ii) a New Construction Asset, or (iii) any other Real Property other than an
open air shopping center (including single tenant retail properties), and (b)
all Investments of the Borrower and its Subsidiaries of the type described in
Section 8.3(h) and (q), including, without limitation, all Investments of
the Borrower and its Subsidiaries in any FIN 46 Entities.

 

3

 

“Applicable Lending Office”:  in respect of any Lender, (A) in the case of
such Lender’s Prime Rate Loans, its Domestic Lending Office and (B) in the case
of such Lender’s LIBOR Loans, its LIBOR Lending Office.

 

“Applicable Margin”:  with respect to the unpaid principal balance
of Prime Rate Loans or LIBOR Loans, at all times during which the applicable
Pricing Level set forth below is in effect, the respective percentage set forth
below next to such Pricing Level:

 

	
  Pricing Level

  	
   

  	
  LIBOR
  Loans

  	
   

  	
  Prime Rate
  Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pricing Level I

  	
   

  	
  0.750

  	
  %

  	
  0

  	
  %

  
	
  Pricing Level II

  	
   

  	
  0.850

  	
  %

  	
  0

  	
  %

  
	
  Pricing Level III

  	
   

  	
  1.000

  	
  %

  	
  0

  	
  %

  
	
  Pricing Level IV

  	
   

  	
  1.375

  	
  %

  	
  0.250

  	
  %

  

 

Changes in the Applicable Margin resulting
from a change in a Pricing Level shall become effective as of the opening of
business upon the date of any change in the Senior Debt Rating of the Borrower,
as determined by S&P or Moody’s, as the case may be, which would affect the
applicable Pricing Level.

 

“Approved Fund”:  means any Fund that is administered or
managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
Affiliate of an entity that administers or manages a Lender.

 

“Assignment and Assumption Agreement”:  an assignment and assumption entered into by
a Lender and an Eligible Assignee (with the consent of any party whose consent
is required by Section 11.7), and accepted by the Administrative Agent, in
substantially the form of Exhibit A or any other form approved by the
Administrative Agent.

 

“Assignment Fee”:  as defined in Section 11.7(b).

 

“Assignment of Interests”:  collectively, (i) the First Amended and
Restated Assignment of Interests (Distributions Interests Companies) dated of
even date herewith from Borrower to the Administrative Agent, for the benefit
of the Lenders, as the same may be modified, amended or restated, pursuant to
which there shall be granted to the Administrative Agent a first priority lien
and security interest in the interests of the Borrower in the Collateral
described therein, (ii) the First Amended and Restated Assignment of Interests
(Pledged Interests Companies) dated of even date herewith from Borrower and HK
New Plan STH Upper Tier II Company to the Administrative Agent, for the benefit
of the Lenders, as the same may be modified, amended or restated, pursuant to
which there shall be granted to the Administrative Agent a first priority lien
and security interest in the interests of Borrower and HK New Plan STH Upper
Tier II Company in the Collateral described therein, and (iii) each additional
Assignment of Interests in favor of Administrative Agent, for the benefit of
the Lenders, delivered pursuant to the terms hereof, as the same may be
modified, amended or restated, and any further assignments, certificates,
powers, consents, acknowledgments, estoppels or UCC-1 financing statements that
may be delivered in connection therewith.

 

4

 

“Assignors”:  collectively, Borrower, HK New Plan STH Upper Tier II Company and
each Person executing an Assignment of Interests as an assignor after the date
hereof.

 

“Authorized Signatory”:  the chairman of the board, the chief
executive officer, the president, any executive vice president, the Chief
Financial Officer or any other duly authorized officer (acceptable to the
Administrative Agent) of the Borrower.

 

“Bank of America”:  Bank of America, N.A.

 

“Bank of America Fee”:  as defined in Section 3.1.

 

“Benefited Lender”:  as defined in Section 11.10.

 

“Book Manager”:  Banc of America Securities LLC.

 

“Borrower’s Interest”:  for any period, (i) with respect to
Unencumbered Assets or Operating Properties, as applicable, owned by a DownREIT
Partnership or a wholly owned Subsidiary of a DownREIT Partnership, a fraction,
expressed as a percentage, the numerator of which is the Net Operating Income
of such Unencumbered Assets or Operating Properties, as applicable, for such
period, less any distributions required to be made, directly or indirectly, to
partners or members of such DownREIT Partnership, other than the Borrower and
its Subsidiaries, and the denominator of which is the Net Operating Income of
such Unencumbered Assets or Operating Properties, as applicable, for such
period, and (ii) with respect to any Ancillary Asset or Redevelopment Asset,
the percentage of profits and losses with respect thereto to which the Borrower
or its wholly owned Subsidiaries, directly or indirectly, may be entitled to
receive for such period.

 

“Borrowing Date”:  the date on which the Borrower requests the
Lenders to make Loans, which date shall be the Effective Date.

 

“Business Day”:  any day other than a Saturday, Sunday or
other day on which commercial banks are authorized to close under the Laws of,
or are in fact closed in, the state where the Administrative Agent’s Office is
located and, if such day relates to any LIBOR Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

 

“CA New Plan”:  CA New Plan Fixed Rate Partnership, L.P., a
Delaware limited partnership.

 

“Capital Expense Reserve”:  during any period, with respect to each
Unencumbered Asset, Operating Property or Subject Property, as applicable, an
amount equal to (A) a per annum rate of $.15 times (B) the total Net Rentable
Area of such Unencumbered Asset, Operating Property or Subject Property, as
applicable (in each case whether or not such reserves are actually established
by the Borrower).

 

“Capital Leases”:  leases which have been, or under GAAP are
required to be, capitalized.

 

“Change of Control”:  the occurrence of any one of the following
events:

 

5

 

(a)                                  any
Person or Persons acting as a group shall acquire direct or indirect ownership
of 30% or more of the Borrower’s common Stock; or

 

(b)                                 during
any twelve month period on or after the Effective Date, individuals who at the
beginning of such period constituted the Board of Directors of the Borrower
(together with any new directors whose election by the Board of Directors or
whose nomination for election by the shareholders of the Borrower was approved
by a vote of at least a majority of the members of the Board of Directors then
in office who either were members of the Board of 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 members of the
Board of Directors then in office; or

 

(c)                                  there
occurs a change of control of the Borrower of a nature that would be required
to be reported in response to Item 1a of Form 8-K in effect on the date hereof (or
any successor provision, including, without limitation, Item 5.01 set forth in
SEC Release 33-8400; 34-49424, if and when such changes become effective) filed
pursuant to Section 13 or 15 under the Securities Exchange Act of 1934, or
in any other filing by the Borrower with the Securities and Exchange
Commission; or

 

(d)                                 the
Borrower consolidates with, is acquired by, or merges into or with any Person
(other than a merger permitted by Section 8.2).

 

“Chief Financial Officer”:  at any time, the chief financial officer of
the Borrower, or if the Borrower does not have a chief financial officer at
such time, the officer designated by the Borrower as its principal financial
officer or such other officer of the Borrower that is acceptable to the
Administrative Agent.

 

“Code”:  the Internal Revenue Code of 1986, as the same may be amended
from time to time, or any successor thereto, and the rules and regulations
issued thereunder, as from time to time in effect.

 

“Collateral”:  all of the property, rights and interests of
the Borrower and its Subsidiaries which are subject to the security interests
and liens created by the Security Documents.

 

“Collateral Interests”:  collectively, the Distributions Interests
and the Equity Interests, but excluding Additional Interests.

 

“Collateral Interests Owners”:  collectively, the Distributions Interests
Owners and the Equity Interests Owners.

 

“Collateral Interests Properties”:  collectively, the Distributions Interests
Properties and the Equity Interests Properties.

 

“Commitment”:  in respect of any Lender, such Lender’s
undertaking to make Loans, subject to the terms and conditions hereof, in an
aggregate outstanding principal amount not exceeding such Lender’s Commitment
Amount.

 

6

 

“Commitment Amount”:  the amount set forth next to the name of
such Lender in Exhibit B under the heading “Commitments” as such
Lender’s Commitment Amount, as the same may be changed in accordance with the
terms of this Agreement.

 

“Commitment Percentage”:  on any day, and as to any Lender, the
quotient of (i) such Lender’s Commitment Amount on such day, divided by (ii)
the Commitment Amount of all Lenders on such day.

 

“Company”:  shall have the meaning ascribed to such term in the Assignment of
Interests.

 

“Compliance Certificate”:  a certificate substantially in the form of Exhibit
D.

 

“Consolidated”:  the Borrower and its Subsidiaries which are
consolidated for financial reporting purposes. 
Notwithstanding anything contained herein to the contrary, for purposes
of this Agreement, the phrase “Borrower and its Subsidiaries determined on a
Consolidated basis in accordance with GAAP” (and similar phrases having the
same meaning) shall not be deemed to include the consolidation of FIN 46
Entities (other than the inclusion of the applicable pro-rata share of assets,
liabilities, income or loss attributable to such FIN 46 Entities to the extent
required pursuant to this Agreement).

 

“Consolidated EBITDA”:  with respect to any period an amount equal
to the EBITDA of Borrower and its Subsidiaries for such period, determined on a
Consolidated basis in accordance with GAAP.

 

“Consolidated Fixed Charges”:  during any period, the sum of each of the
following with respect to the Borrower and its Subsidiaries (without
duplication), determined on a Consolidated basis in accordance with GAAP:  (i) the aggregate amount of all interest
expense, both expensed and capitalized (including Consolidated Interest
Expense) for such period, (ii) the aggregate of all scheduled principal amounts
that become payable during such period in respect of any Indebtedness of the
Borrower or its Subsidiaries (excluding balloon payments at maturity) and (iii)
the aggregate amount of all cash dividends paid during such period in respect of
preferred equity of the Borrower or its Subsidiaries (including, without
limitation, in respect of preferred operating units).

 

“Consolidated Interest Expense”:  for any period, interest and fees accrued,
accreted or paid by the Borrower and its Subsidiaries during such period in
respect of Consolidated Total Indebtedness, determined in accordance with GAAP,
including (a) the amortization of debt discounts to the extent included in
interest expense in accordance with GAAP, (b) the amortization of all fees
(including fees with respect to Hedging Agreements entered into by the Borrower
or any of its Subsidiaries) payable in connection with the incurrence of any
Indebtedness to the extent included in interest expense in accordance with GAAP
and (c) the portion of any rents payable under capital leases allocable to
interest expense in accordance with GAAP.

 

“Consolidated Total Indebtedness”:  as of any date, the aggregate principal
amount of all Indebtedness of the Borrower and its Subsidiaries determined on a
Consolidated basis in accordance with GAAP, plus, if not otherwise required to
be reflected in the Borrower’s Consolidated balance sheet (and without
duplication) (i) Contingent Obligations of the Borrower and its Subsidiaries on
such date which are required in accordance with GAAP to be disclosed in a
footnote to any such balance sheet, and (ii) any guarantee by the Borrower of
any Indebtedness of an unconsolidated

 

7

 

Subsidiary or Joint Venture in which the Borrower is a direct or
indirect investor (to the full extent of the amount of such guaranteed
Indebtedness on such date); provided, however, that with respect to Joint
Ventures in which Borrower is a direct or indirect investor that are not
consolidated in the Borrower’s Consolidated balance sheet or that are FIN 46
Entities, Consolidated Total Indebtedness shall also include (x) the aggregate
principal amount of all Indebtedness of such Joint Ventures if such
Indebtedness is recourse to the Borrower or one of its Subsidiaries, and (y)
Borrower’s pro rata share of the aggregate principal amount of all Indebtedness
of such Joint Ventures if such Indebtedness is Non-Recourse Indebtedness.  Notwithstanding the foregoing, unfunded
portions of any Indebtedness (and any Contingent Obligations relating solely to
such unfunded amounts) shall not be included in Consolidated Total
Indebtedness.

 

“Contingent Obligation”:  as to any Person, any obligation of such
Person guaranteeing or in effect guaranteeing any Indebtedness, leases,
dividends or other obligations (“Primary Obligations”) of any other Person (the
“Primary Obligor”) in any manner, whether directly or indirectly, and whether
arising from partnership or keep-well agreements, including, without limitation,
any obligation of such Person, whether contingent or not contingent (a) to
purchase any such Primary Obligation or any Property constituting direct or
indirect security therefor, (b) to advance or supply funds (i) for the
purchase or payment of any such Primary Obligation or (ii) to maintain
working capital or equity capital of the Primary Obligor or otherwise to
maintain net worth, solvency or other financial statement condition of the
Primary Obligor, (c) to purchase Property, securities or services primarily for
the purpose of assuring the beneficiary of any such Primary Obligation of the
ability of the Primary Obligor to make payment of such Primary Obligation, or
(d) otherwise to assure, protect from loss or hold harmless the beneficiary of
such Primary Obligation against loss in respect thereof; provided, however,
that the term Contingent Obligation shall not include (a) the endorsement
of instruments for deposit or collection in the ordinary course of business, or
(b) guarantees or carve-outs that constitute Non-Recourse Exclusions until
a claim is made with respect thereto, and then shall be included only to the
extent of the amount of such claim.  The
term Contingent Obligation shall also include the liability of a general
partner in respect of the liabilities of the partnership in which it is a
general partner, but shall not include the liability of a member (managing or
otherwise) of a limited liability company in respect of the liabilities of such
limited liability company to the extent not imposed by agreement or by
law.  The amount of any Contingent
Obligation of a Person shall be deemed to be an amount equal to the stated or
determinable amount of the Primary Obligation in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by such
Person in good faith.

 

“Conversion Date”:  the date on which a LIBOR Loan is converted
to a Prime Rate Loan, or the date on which a Prime Rate Loan is converted to a
LIBOR Loan, or the date on which a LIBOR Loan is converted to a new LIBOR Loan,
all in accordance with Section 2.8.

 

“Credit Party”:  the Administrative Agent, the Lead Arranger,
the Book Manager, each Lender and their successors and assigns.

 

“Debt Service”: for any period, the
sum of all interest (including capitalized interest) and mandatory or scheduled
principal payments due and payable during such period (including any payments
due under any Capital Lease) excluding any balloon payments due upon maturity
of any Indebtedness.

 

8

 

“Default”:  any event or condition which constitutes an Event of Default or
which, with the giving of notice, the lapse of time, or any other condition,
would, unless cured or waived, become an Event of Default.

 

“Defaulting Lender”:  at any time, any Lender that, at such time,
(i) has failed to comply with any of its obligations to make a Loan as required
pursuant to this Agreement within one (1) Business Day of the date required to
be funded by it hereunder, (ii) has failed to pay to the Administrative Agent
or any Lender any other amount owed by such Lender pursuant to the terms of
this Agreement or any of the other Loan Documents within one (1) Business Day
of the date when due, unless the subject of a good faith dispute, or (iii) has
been deemed insolvent or become subject to a bankruptcy or insolvency
proceeding.

 

“Deposit Account”:  that certain account maintained by Fleet
National Bank, designated as account number 94181-45005 and any replacement
account hereafter established by Borrower with the prior written consent of
Administrative Agent.

 

“Distribution”:  With respect to any Person, the declaration
or payment of any cash dividend or distribution on or in respect of any shares
of any class of capital stock or other beneficial interest of such Person; the
purchase, redemption, exchange or other retirement by such Person of any shares
of any class of capital stock or other beneficial interest of such Person,
directly or indirectly through a Subsidiary of such Person or otherwise; the
return of capital by such Person to its shareholders, members or partners as
such; or any other distribution on or in respect of any shares of any class of
capital stock or other beneficial interest of such Person.

 

“Distributions Interests”:  collectively, one hundred percent (100%) of
the Borrower’s right, title and interest in and to Distributions received from
any Distribution Interests Owner and, to the extent not prohibited by the Subject
Property Loan Documents, one hundred percent (100%) of the Borrower’s legal,
equitable and beneficial right, title and interest in and to Distributions from
any Distributions Interests Owner.

 

“Distributions Interests Owners”:  collectively, the Subsidiaries of Borrower
set forth on Exhibit C-2, and any other Subsidiary of Borrower whose
Distributions to Borrower become the subject of a Distributions Interest after
the date hereof pursuant to Section 6.2.

 

“Distributions Interests Properties”:  collectively, the Subject Properties
directly or indirectly owned by the Distributions Interests Owners more
particularly described on Exhibit C-2 and any other Subject Property
directly or indirectly owned by a Distributions Interests Owner which becomes a
Distributions Interests Property after the date hereof pursuant to
Section 6.2.

 

“Documentation Agent”:  KeyBank National Association, as
documentation agent.

 

“Dollars” and “$”:  lawful currency of the United States of
America.

 

“Domestic Lending Office”:  in respect of any Lender, initially, the
office or offices of such Lender designated as such on Exhibit B;
thereafter, such other office of such Lender through which it shall be making
or maintaining Prime Rate Loans, as reported by such Lender to the Administrative
Agent and the Borrower.

 

9

 

“Domestic Reference Lender”:  Bank of America or such other Lender as may
become the Administrative Agent hereunder.

 

“DownREIT Partnership”:  Excel Realty Partners, L.P. and any other
partnership or limited liability company hereafter created by the Borrower for
the purpose of acquiring assets qualifying as “real estate assets” under
Section 856(c) of the Code through the issuance of partnership or limited
liability company units in such partnership or limited liability company to
third parties, provided that, in the case of each such entity (including Excel
Realty Partners, L.P.) (i) the Borrower or a wholly owned Subsidiary of
the Borrower is the sole general partner or managing member of such partnership
or limited liability company, as the case may be, and (ii) the Borrower or its
wholly owned Subsidiary shall be entitled to receive not less than 95% of the
net income and gains before depreciation, if any, from such partnership or
limited liability company after the limited partners or non-managing members of
such partnership or limited liability company receive a stipulated
distribution. Any partnership or limited liability company created after the
Effective Date must be approved by the Administrative Agent as a “DownREIT
Partnership” for purposes of being included in this definition.

 

“EBITDA”:  with respect to a Person or a Subsidiary of a Person (or any
asset of a Person or a Subsidiary of such Person) for any period, an amount
equal to the sum of (a) the net income (or loss) of such Person (or
attributable to such asset) for such period plus (b) depreciation and
amortization, interest, and any extraordinary or non-recurring losses or
charges for impairment of real estate deducted in calculating such net income minus
(c) any extraordinary or non-recurring gains included in calculating such net
income, all as determined in accordance with GAAP.  EBITDA shall be calculated on a pro forma basis as if assets
acquired during the relevant period were owned as of the beginning of the
relevant period, and all assets disposed of during the relevant period were not
owned during any portion of the relevant period.  Adjustments for unconsolidated partnerships, Joint Ventures and FIN
46 Entities will be calculated to reflect EBITDA on the same basis.

 

“Effective Date”:  the date of this Agreement.

 

“Eligible Assignee”:  (a) a Lender; (b) an Affiliate of a Lender;
(c) an Approved Fund; and (d) any other Person (other than a natural person)
approved by (i) the Administrative Agent (provided, however, that the
Administrative Agent’s approval shall not be required following and during the
continuation of an Event of Default so long as such assignee is a financial
institution having a net worth of not less than $300,000,000.00 as of the date
of such assignment), and (ii) unless an Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or
delayed), provided that notwithstanding the foregoing, “Eligible Assignee”
shall not include the Borrower, any Subsidiary Guarantor or any of the
Borrower’s or any Subsidiary Guarantor’s Affiliates or Subsidiaries.

 

“Environmental Laws”:  any and all federal, state and local laws
relating to the environment, the use, storage, transporting, manufacturing,
handling, discharge, disposal or recycling of hazardous substances, materials
or pollutants or industrial hygiene and including, without limitation, (i) the
Comprehensive Environmental Response, Compensation and Liability Act, as
amended, 42 USCA §9601 et seq.; (ii) the Resource Conservation and Recovery Act
of 1976, as amended, 42 USCA §6901 et seq.; (iii) the Toxic Substance Control
Act, as amended, 15 USCA

 

10

 

§2601 et seq.; (iv) the Water Pollution Control Act, as amended, 33
USCA §1251 et seq.; (v) the Clean Air Act, as amended, 42 USCA §7401 et seq.;
(vi) the Hazardous Material Transportation Act, as amended, 49 USCA §1801 et
seq. and (viii) all rules, regulations, judgments, decrees, injunctions and
restrictions thereunder and any analogous state law.

 

“Environmental Risk Property”:  any Real Property of the Borrower, a
Subsidiary, a DownREIT Partnership or a Subsidiary of a DownREIT Partnership in
respect of which, at any time:

 

(i)                                     Hazardous
Substances are (A) generated or manufactured on, transported to or from,
treated at, stored at or discharged from such Real Property in violation of any
Environmental Laws; (B) discharged into subsurface waters under such Real
Property in violation of any Environmental Laws; or (C) discharged from such
Real Property on or into property or waters (including subsurface waters)
adjacent to such Real Property in violation of any Environmental Laws, and any
of the foregoing events in (A), (B) or (C) has an Adverse Environmental Impact;
or

 

(ii)                                  there
exists with respect to such Real Property (A) a claim, demand, suit, action,
proceeding, condition, report, directive, lien, violation, or non-compliance
concerning any liability (including, without limitation, potential liability
for enforcement, investigatory costs, cleanup costs, government response costs,
removal costs, remedial costs, natural resources damages, property damages,
personal injuries or penalties) arising in connection with:  (x) any non-compliance with or violation of
the requirements of any applicable Environmental Laws, or (y) the presence of
any Hazardous Substance on such Real Property or the release of any Hazardous
Substance into the environment from such Real Property, or (B) any actual
liability in connection with the presence of any Hazardous Substance on such
Real Property or the release of any Hazardous Substance into the environment
from such Real Property, and any of the foregoing events in (A) or (B) has an
Adverse Environmental Impact.

 

For purposes of this definition, the term “Adverse
Environmental Impact” shall mean any event described in clauses (A), (B) or
(C) of paragraph (i) above or clauses (A) or (B) of paragraph (ii) above which
could reasonably be expected to have a material adverse effect on (1) the
value of such Real Property, (2) the marketability of such Real Property, or
(3) the ability to finance or refinance such Real Property.

 

“Equity Interests”:  collectively, one hundred percent (100%) of
the legal, equitable and beneficial ownership interests in any Subsidiary of
Borrower that is a direct or indirect owner of an Equity Interests Property.

 

“Equity Interests Owners”:  collectively, the Subsidiaries of Borrower
set forth on Exhibit C-1, and any other Subsidiary of Borrower whose
entire ownership interest becomes the subject of an Equity Interest after the
date hereof pursuant to Section 6.2.

 

“Equity Interests Properties”:  collectively, the Subject Properties
directly or indirectly owned by the Equity Interests Owners more particularly
described on Exhibit C-1 and any other Subject Property directly or
indirectly owned by an Equity Interests Owner which becomes an Equity Interests
Property after the date hereof pursuant to Section 6.2.

 

11

 

“ERISA”:  the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the rules and regulations issued thereunder, as from
time to time in effect.

 

“ERISA Affiliate”:  any Person which is a member of any group of
organizations (i) described in Section 414(b) or (c) of the Code of which
the Borrower is a member, or (ii) solely for purposes of potential liability
under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code
and the Lien created under Section 302(f) of ERISA and Section 412(n)
of the Code, described in Section 414(m) or (o) of the Code of which the
Borrower is a member.

 

“ERISA Liabilities”:  without duplication, the aggregate of all
unfunded vested benefits under all Plans and all potential withdrawal
liabilities under all Multiemployer Plans.

 

“Event of Default”:  any of the events specified in
Section 9, provided that any requirement for the giving of notice, the
lapse of time or any other condition specified in Section 9 has occurred
or been satisfied.

 

“Excess Funds”:  as defined in the Account Agreement.

 

“Excluded Collateral Interests Subsidiary”:  HK New Plan Exchange Property Owner I, LLC,
a Delaware limited liability company, HK New Plan Exchange Property Owner II,
LP and HK New Plan Exchange Property Holdings I LLC, a Delaware limited
liability company.

 

“Excluded Subject Property”:  as defined in the definition of Subject
Property Adjusted Net Operating Income.

 

“Excluded Subsidiary”:  (i) any DownREIT Partnership and any wholly
owned Subsidiary of a DownREIT Partnership, (ii) CA New Plan Fixed Rate
Partnership, L.P., a Delaware limited partnership, (iii) any Subsidiary
all of the Real Property of which is encumbered in favor of a Person other than
Borrower or any of its Subsidiaries, (iv) any Consolidated Joint Venture
or any Subsidiary, the sole asset of which is an interest as a partner, member
or similar interest in an unconsolidated or Consolidated Joint Venture
(including a FIN 46 Entity), (v) any Subsidiary that does not directly own
any Real Property, or (vi) any Subsidiary which is established as a special
purpose entity to own Real Property or equity interests related thereto in a
bankruptcy remote manner to secure secured Indebtedness permitted by this
Agreement.

 

“Existing Credit Agreement”:  that certain First Amended and Restated
Revolving Credit Agreement dated as of even date herewith among the Borrower,
Bank of America as Administrative Agent, and the lenders signatory thereto, as
subsequently amended from time to time, and any restatements, consolidations,
replacements or refinancings thereof.

 

“Federal Funds Rate”:  for any day, the rate per annum 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

 

12

 

average rate (rounded upward, if necessary, to a whole multiple of
1/100 of 1%) charged to Administrative Agent on such day on such transactions
as determined by the Administrative Agent.

 

“FIN 46”:  the pronouncement entitled Financial Interpretation 46
“Consolidation of Variable Interest Entities” by the Financial Accounting
Standards Board on January 17, 2003, as revised from time to time.

 

“FIN 46 Entities”:  any entity in which Borrower or any
Subsidiary directly or indirectly owns an interest that is not a Subsidiary,
but that is nonetheless consolidated with Borrower or any Subsidiary for
financial reporting purposes as a result of the application of FIN 46.

 

“Financial Statements”:  as defined in Section 4.13.

 

“Fixed Charge Coverage Ratio”:  on any date of determination, for the period
of four (4) fiscal quarters just ended prior to the date of determination, the
ratio of (i) Consolidated EBITDA for such period to (ii) Consolidated
Fixed Charges for such period.

 

“Fund”:  any Person (other than a natural person) that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business.

 

“Funds from Operations”:  with respect to any Person for any fiscal
period, the sum of (i) the net income of such Person for such fiscal
period (computed in accordance with GAAP), excluding (a) gains (or losses) from
debt restructuring and sales of property and (b) charges for impairment of real
estate, (ii) depreciation and amortization, and (iii) other non-cash items, and
after adjustments for unconsolidated partnerships, Joint Ventures and FIN 46
Entities.  Adjustments for
unconsolidated partnerships, Joint Ventures and FIN 46 Entities will be
calculated to reflect funds from operations on the same basis.

 

“GAAP”:  generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statement by such
other entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination, consistently applied.

 

“Governmental Authority”:  the government of the United States or any
other nation, or of any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government
(including any supra-national bodies such as the European Union or the European
Central Bank).

 

“Ground Lease”:  a ground lease in favor of the Borrower, a
wholly owned Subsidiary of Borrower, a DownREIT Partnership or a wholly owned
Subsidiary of a DownREIT Partnership which has an unexpired term of 30 years or
more (inclusive of any tenant-controlled renewal options) and which includes
within its terms those rights customarily required by mortgagees making a loan
secured by the interest of the holder of the leasehold estate demised pursuant
to such ground lease.

 

13

 

“Guaranty”:  collectively, (i) the First Amended and Restated Guaranty,
substantially in the form of Exhibit F executed by each of the
Subsidiary Guarantors identified on Schedule 4.4 and delivered to
the Administrative Agent for the benefit of the Lenders on or prior to the
Effective Date, and (ii) each additional Guaranty substantially in the form of Exhibit
F executed by each Required Additional Guarantor and delivered to the Administrative
Agent for the benefit of the Lenders after the Effective Date.

 

“Hazardous Substance”:  any hazardous or toxic substance, material
or waste, including, but not limited to, (i) those substances, materials, and
wastes listed in the United States Department of Transportation Hazardous
Materials Table (49 CFR 172.101) or by the Environmental Protection Agency as
hazardous substances (40 CFR Part 302) and amendments thereto and replacements
therefor and (ii) any substance, pollutant or material defined as, or
designated in, any Environmental Law as a “hazardous substance,” “toxic
substance,” “hazardous material,” “hazardous waste,” “restricted hazardous
waste,” “pollutant,” “toxic pollutant” or words of similar import.

 

“Hedging Agreement”:  any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging
arrangement.

 

“Highest Lawful Rate”:  with respect to any Lender, the maximum rate
of interest, if any, that at any time or from time to time may be contracted
for, taken, charged or received by such Lender on its Note or which may be
owing to such Lender pursuant to this Agreement under the laws applicable to
such Lender and this Agreement.

 

“Implied Debt Service”:  As of any date of determination, the annual
Debt Service of the Borrower and the Subject Property Owners that would be
payable on a loan amount equal to the sum of (a) the Loans, and (b) the Subject
Property Indebtedness (excluding any Subject Property Indebtedness for any
Excluded Subject Property), payable on a 25-year mortgage style amortization
schedule and assuming an interest rate equal to the greater of (i) the
then current yield on ten (10) year obligations issued by the United States
Treasury most recently prior to the date of determination plus two percent
(2.00%), and (ii) 6.00%.  The Implied
Debt Service shall be determined by Administrative Agent and any such
determination, so long as the same shall be made by Administrative Agent in the
exercise of its good faith business judgment, shall be conclusive and binding
absent manifest error.

 

“Indebtedness”:  as to any Person, at a particular time, all
items which constitute, without duplication, (a) indebtedness for borrowed
money (including, without limitation, indebtedness under this Agreement and the
Notes) or the deferred purchase price of Property (other than trade payables
incurred in the ordinary course of business), (b) indebtedness evidenced by
notes, bonds, debentures or similar instruments, (c) obligations with respect
to any conditional sale or title retention agreement, (d) indebtedness arising
under acceptance facilities and the amount available to be drawn under all
letters of credit issued for the account of such Person and, without
duplication, all drafts drawn thereunder to the extent such Person shall not
have reimbursed the issuer in respect of the issuer’s payment of such drafts,
(e) all liabilities secured by any Lien on any Property owned by such Person
even though such Person has not assumed or otherwise become liable for the
payment thereof (other than carriers’, warehousemen’s, mechanics’, repairmen’s
or other like non-consensual statutory Liens arising in the ordinary course of
business), (f) obligations under

 

14

 

Capital Leases, (g) Contingent Obligations, (h) ERISA Liabilities
and (i) all indebtedness, obligations or other liabilities under or with
respect to any Hedging Agreements that in accordance with GAAP should be
classified upon such Person’s balance sheet as liabilities, or to which
reference should be made by footnotes thereto; provided, however, that the term
Indebtedness shall not include guarantees or carve-outs with respect to claims
of the types referenced in (i)-(iv) of the definition of Non-Recourse
Exclusions until a claim is made with respect thereto, and then shall be
included only to the extent of the amount of such claim.

 

“Indemnified Person”:  as defined in Section 11.12.

 

“Instruction Letter”: a letter
agreement in the form attached hereto as Exhibit E executed by Borrower,
the Administrative Agent and the Servicer pursuant to which the Servicer will
agree to disburse the Excess Funds to the Deposit Account.

 

“Intellectual Property”:  all copyrights, trademarks, patents, trade
names and service names.

 

“Interest Payment Date”:  (a) as to any Loan other than a Prime Rate
Loan, the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for
a LIBOR Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Prime Rate Loan, the last Business Day of each
March, June, September and December and the Maturity Date.

 

“Interest Period”:  with respect to any LIBOR Loans requested by
the Borrower, the period commencing on, as the case may be, the Effective Date
or Conversion Date with respect to such LIBOR Loans and ending one, two or
three months thereafter, as selected by the Borrower in its irrevocable request
to Administrative Agent with respect to the Loans to be made on the Effective
Date or its irrevocable notice of conversion as provided in Section 2.8;
provided, however, that all of the foregoing provisions relating to Interest
Periods are subject to the following:

 

(a)                                  any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless, in the case of a
LIBOR Loan, such Business Day falls in another calendar month, in which case
such Interest Period shall end on the immediately preceding Business Day;

 

(b)                                 if,
with respect to the borrowing of any Loan as a LIBOR Loan or the conversion of
one Advance to another pursuant to Section 2.8, the Borrower shall fail to
give due notice with respect to the Loans to be made on the Effective Date or
with respect to a conversion as provided in Section 2.8, as the case may be,
the Borrower shall be deemed to have elected that such Loan or Advance shall be
made as a Prime Rate Loan;

 

(c)                                  any
Interest Period pertaining to a LIBOR Loan that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on the
last Business Day of a calendar month;

 

(d)                                 with
respect to any Interest Period applicable to a LIBOR Loan, no such Interest
Period shall end after the Maturity Date; and

 

15

 

(e)                                  the
Borrower shall select Interest Periods so as not to have more than five (5)
different Interest Periods outstanding at any one time with respect to LIBOR
Loans.

 

“Investments”:  as defined in Section 8.3.

 

“Joint Venture”:  an Investment by Borrower or any of its
Subsidiaries with third persons in joint ventures, general partnerships,
limited partnerships, limited liability companies or any other business
association.  Joint Ventures include
non-wholly owned Subsidiaries of Borrower and FIN 46 Entities.

 

“Land Assets”:  any land of the Borrower or its
Subsidiaries, or in which the Borrower or any of its Subsidiaries has an
interest (either directly or indirectly, through a Joint Venture or otherwise)
with respect to which the commencement of grading, construction of improvements
or infrastructure has not yet commenced, and all unimproved land according to
GAAP.

 

“Laws”:  collectively, all international, foreign, Federal, state and
local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

 

“Lead Arranger”:  Banc of America Securities LLC, as sole lead
arranger.

 

“LIBOR”:  for any Interest Period with respect to any LIBOR Loan:

 

(a)                                  the
rate per annum equal to the rate determined by the Administrative Agent to be
the offered rate that appears on the page of the Telerate screen (or any
successor thereto) 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 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 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 LIBOR Loan
being made, continued, or converted by Administrative Agent and with a term
equivalent to such Interest Period would be offered by Administrative Agent’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.  In
the

 

16

 

event that the Board of Governors of the Federal Reserve System shall
impose a Reserve Percentage with respect to LIBOR deposits of Administrative
Agent, then for any period during which such Reserve Percentage shall apply,
LIBOR shall be equal to the amount determined above divided by an amount equal
to 1 minus the Reserve Percentage.

 

“LIBOR Lending Office”:  initially, the office of each Lender
designated as such in Exhibit B hereto; thereafter, such other office of
such Lender, if any, that shall be making or maintaining LIBOR Loans.

 

“LIBOR Loans”:  loans bearing interest calculated by
reference to a LIBOR.

 

“Lien”:  any mortgage, pledge, hypothecation, assignment, deposit or
preferential arrangement, encumbrance, lien (statutory or other), or other
security agreement or security interest of any kind or nature whatsoever, including,
without limitation, any conditional sale or other title retention agreement and
any capital or financing lease having substantially the same economic effect as
any of the foregoing.

 

“Loan” and “Loans”:  an individual term loan or the aggregate
term loans as the case may be, to be made by the Lenders hereunder.  All Loans shall be made in Dollars.

 

“Loan Documents”:  collectively, this Agreement, the Security
Documents, the Guaranty (and each Guaranty subsequently delivered pursuant to
Section 7.11), the Notes, the Acknowledgments and all other documents,
instruments or agreements now or hereafter executed or delivered by or on
behalf of the Borrower, any Subsidiary Guarantor or any of their respective
Subsidiaries evidencing, securing or otherwise relating to the Loans to which
Administrative Agent and/or the Lenders are a party or an intended beneficiary.

 

“Managing Agents”:  PNC Bank, National Association and SunTrust
Bank, as co-managing agents.

 

“Margin Stock”:  any “margin stock”, as said term is defined
in Regulation U of the Board of Governors of the Federal Reserve System, as the
same may be amended or supplemented from time to time.

 

“Material Adverse Effect”:  a material adverse effect on (i) the
financial condition, operations, business, or Properties of (A) the Borrower or
(B) the Borrower and its Subsidiaries taken as a whole, (ii) the ability of the
Borrower to perform any of its material obligations under the Loan Documents or
the ability of the Assignors or the Subsidiary Guarantors, taken as a whole, to
perform their respective material obligations under any of the Loan Documents
to which they are a party, (iii) the ability of the Administrative Agent and
the Lenders to enforce the Loan Documents, (iv) the Collateral or (v) any of
the Subject Properties.

 

“Maturity Date”:  the earlier of (i) June 29, 2007,
or (ii) the date on which the Notes shall become due and payable, whether
by acceleration or otherwise.

 

“Moody’s”:  Moody’s Investors Services, Inc. and any successor thereto.

 

17

 

“Multiemployer Plan”:  a plan defined as such Section 3(37) of
ERISA to which contributions have been made by the Borrower or any ERISA
Affiliate and which is covered by Title IV of ERISA.

 

“Net Operating Income”:  for any period and with respect to all
assets which are Unencumbered Assets, Operating Properties or Subject
Properties, as applicable, during such period, the sum of (a) net income
for such period, determined in accordance with GAAP, attributable to Unencumbered
Assets, Operating Properties or Subject Properties, as applicable, plus
(b) depreciation and amortization, interest expense and any extraordinary or
non-recurring losses or charges for impairment of real estate deducted in
calculating such net income, minus (c) extraordinary or non-recurring
gains and payments (including rent insurance proceeds and condemnation awards)
included in such net income, minus (d) any portion of such net income
attributable to rents paid by any tenant which is an Affiliate of the Borrower,
minus (e) an amount (but not less than zero) equal to the excess
(if any) of (i) 3% of operating income for such period, over
(ii) management fees payable in respect of such Unencumbered Assets,
Operating Properties or Subject Properties, as applicable, during such
period.  For purposes of any calculation
of Net Operating Income, real estate taxes, ground rent and insurance shall be
included only at their stabilized, recurring levels.

 

“Net Rentable Area”:  with respect to any Real Property, the floor
area of any buildings, structures or improvements thereof (expressed in square
feet) available for leasing to tenants, as determined in accordance with the
leases or site plans or leasing plans for such Real Property, or if such leases
or site plans or leasing plans do not set forth the floor area demised
thereunder (or if such Real Property is not subject to a lease), then as
determined by the Borrower in accordance with an industry-accepted protocol
approved by the Administrative Agent.

 

“New Construction Asset”:  any Property of the Borrower or its
Subsidiaries, or in which the Borrower or any of its Subsidiaries has an
interest (either directly or indirectly, through a Joint Venture or otherwise)
(i) which is new ground-up construction (but not including an expansion of
an existing Property), and (ii) for which a certificate of occupancy,
whether temporary or permanent, or the functional equivalent thereof, has not
been issued with respect to such construction or expansion (if required by law
to occupy the same).  Notwithstanding
the foregoing, any such new construction which shall have been a New
Construction Asset under the criteria of this definition shall no longer be a
New Construction Asset upon such time as (A) the same is an
income-producing Property in operating condition, and (B) at least 60% of the
Net Rentable Area (determined on an “as completed” basis) of such construction
is initially leased to tenants who have taken possession thereof.

 

“Non-Recourse Exclusions”:  with respect to any Non-Recourse
Indebtedness of any Person, any usual and customary exclusions from the
non-recourse limitations governing such Indebtedness, including, without
limitation, exclusions for claims that (i) are based on fraud, intentional
misrepresentation, misapplication of funds, gross negligence or willful
misconduct, (ii) result from intentional mismanagement of or waste at the Real
Property securing such Non-Recourse Indebtedness, (iii) arise from the presence
of Hazardous Substances on the Real Property securing such Non-Recourse
Indebtedness; or (iv) are the result of any unpaid real estate taxes and
assessments.

 

18

 

“Non-Recourse Indebtedness”:  at any time, Indebtedness of the Borrower,
its Subsidiaries or a Joint Venture at such time which is secured by one or
more parcels of Real Property or interests therein and which is not a general
obligation of the Borrower or such Subsidiary, the holder of such Indebtedness
having recourse solely to the parcels of Real Property, or interests therein,
securing such Indebtedness, the leases thereon and the rents, profits and
equity thereof (except for recourse against the general credit of the Borrower
or its Subsidiaries for any Non-Recourse Exclusions), provided that in
calculating the amount of Non-Recourse Indebtedness at any time, the amount of
any Non-Recourse Exclusions which are the subject of a final judgment shall not
be included in Non-Recourse Indebtedness.

 

“Note” and “Notes”:  as defined in Section 2.2.

 

“Notes Receivable”:  mortgage and notes receivable and
reimbursement agreements (to the extent obligations are payable under such
reimbursement agreements), including interest payments thereunder, of Borrower
or any Subsidiary in a Person (other than Borrower or its Subsidiaries).

 

“Operating Property”:  any Real Property which at any time (i) is
an income-producing property in operating condition and in respect of which no
material part thereof has been (a) damaged by fire or other casualty (unless
such damage has been repaired) or (b) condemned (unless such condemnation has
been restored), (ii) is a retail shopping center (including single tenant
retail properties), and (iii) for which a certificate of occupancy, whether
temporary or permanent, or the functional equivalent thereof, has been issued
for the operating portions of the improvements comprising the same (if required
by law to occupy the same) and are in full force and effect, and “Operating
Properties” means all such Operating Properties, collectively.  An Operating Property shall not include any
Redevelopment Asset or any New Construction Asset.

 

“Operating Property Value”:  as of any date the quotient of (i) an amount
equal to the Adjusted Net Operating Income for all Operating Properties in the aggregate
for the four fiscal quarters of the Borrower most recently ending as of such
date, divided by (ii) 9.0%. For purposes of any determination of Operating
Property Value, the following limitations and methodology shall apply:  (A) the Adjusted Net Operating Income of any
Operating Property owned by a DownREIT Partnership or a Subsidiary of a
DownREIT Partnership shall be based on the Borrower’s Interest in the Adjusted
Net Operating Income for each such Operating Property for the four fiscal
quarters having most recently ended as of such date; (B) in the event more than
15% of the gross base rents payable under all leases for Properties of the
Borrower, its Subsidiaries, DownREIT Partnerships and Subsidiaries of DownREIT
Partnerships (including the Borrower’s Interest in any Properties) shall be
payable by one tenant and its Subsidiaries, then Operating Property Value shall
be reduced by the percentage amount of such excess multiplied by the Operating
Property Value attributable to the Properties leased or controlled by such
tenant and its Subsidiaries; and (C) in the event that the Borrower or a
Subsidiary of the Borrower shall not have owned an Operating Property for the
entire previous four fiscal quarters, then for the purposes of determining the Operating
Property Value with respect to such Operating Property, the Adjusted Net
Operating Income for such Operating Property shall be annualized in a

 

19

 

manner reasonably satisfactory to the Administrative Agent, provided,
however, that to the extent that a New Construction Asset or Redevelopment
Asset becomes an Operating Property during the relevant period, the Adjusted
Net Operating Income of such Operating Property during such period and the
following periods shall be annualized in a manner reasonably satisfactory to
the Administrative Agent until such time as such Operating Property has
performed as an Operating Property for four (4) full fiscal quarters.

 

“Organization Documents”:  (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

“Participant”:  has the meaning specified in
Section 11.7(d).

 

“PBGC”:  the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA, or any Governmental Authority succeeding to
the functions thereof.

 

“Permitted Liens”:  Liens permitted to exist under
Section 8.1.

 

“Person”:  an individual, a partnership, a corporation, a business trust, a
limited liability company, a joint stock company, a trust, an unincorporated
association, a joint venture, a Governmental Authority or any other entity of
whatever nature.

 

“Plan”:  any employee benefit or other plan established or maintained by
the Borrower or any ERISA Affiliate and which is covered by or subject to the
minimum funding standards of Title IV of ERISA, other than a Multiemployer
Plan.

 

“Potential Properties”:  any Real Properties of Borrower or any
Subsidiary of Borrower which are not at the time included as Subject Properties
and which consist of Real Properties which are capable of becoming Subject
Properties upon satisfaction of the conditions set forth in Section 6.2.

 

“Pricing Level”:  one of the following four pricing levels, as
applicable, provided that if the ratings by S&P and Moody’s in any such
Pricing Level are split by one equivalent rating level, the operative rating
would be deemed to be the higher of the two ratings, and if the ratings by
S&P and Moody’s in any such Pricing Level are split by more than one
equivalent rating level, the operative rating would be deemed to be one rating
level higher than the lower of the two ratings, and provided, further, that
during any period that the Borrower has no Senior Debt Rating, Pricing Level IV
would be the applicable Pricing Level:

 

“Pricing Level I”:  the Pricing Level which would be applicable
for so long as the Senior Debt Rating is greater than or equal to BBB+ by
S&P or Baa1 by Moody’s;

 

“Pricing Level II”:  the Pricing Level which would be applicable
for so long as the Senior Debt Rating is equal to BBB by S&P or Baa2 by Moody’s
and Pricing Level I is not applicable;

 

20

 

“Pricing Level III”:  the Pricing Level which would be applicable
for so long as the Senior Debt Rating is equal to BBB- by S&P or Baa3 by
Moody’s and Pricing Levels I and II are not applicable; and

 

“Pricing Level IV”:  the Pricing Level which would be applicable
for so long as the Senior Debt Rating is less than BBB- by S&P or Baa3 by
Moody’s and Pricing Levels I, II and III are not applicable.

 

“Prime Rate”:  for any day a fluctuating rate per annum
equal to the higher of (a) the Federal Funds Rate plus 1⁄2 of 1% and (b) the rate
of interest in effect for such day as publicly announced from time to time by
Administrative Agent as its “prime rate.” 
The “prime rate” is a rate set by Administrative Agent based upon
various factors including Administrative Agent’s costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans which may be priced at, above, or below such announced
rate.  Any change in such rate announced
by Administrative Agent shall take effect at the opening of business on the day
specified in the public announcement of such change.

 

“Prime Rate Loans”:  those Loans bearing interest calculated by
reference to the Prime Rate.

 

“Property”:  all types of real, personal, tangible, intangible or mixed
property.

 

“Real Property”:  all real Property, and all interests in real
Property, now or hereafter owned, leased or held by the Borrower or any
Subsidiary of the Borrower.

 

“Redevelopment Asset”:  any Property of the Borrower or its
Subsidiaries, or in which the Borrower or any of its Subsidiaries has an
interest (either directly or indirectly, through a Joint Venture or otherwise)
(i) which is not a New Construction Asset, (ii) which is undergoing
an expansion which will increase the Net Rentable Area of such Property by
20,000 square feet or more (provided that with respect to any Property which is
under expansion, if the balance thereof is a fully integrated, rentable
property, then only the portion of such Property that is under expansion shall
be a Redevelopment Asset), and (iii) for which a certificate of occupancy,
whether temporary or permanent, or the functional equivalent thereof, has not
been issued with respect to such construction or expansion (if required by law
to occupy the same).  Notwithstanding
the foregoing, any such expansion which shall have been a Redevelopment Asset
under the criteria of this definition shall no longer be a Redevelopment Asset
upon such time as (A) the same is an income-producing Property in operating
condition, and (B) at least 60% of the Net Rentable Area (determined on an
“as completed” basis) of such expansion is initially leased to tenants who have
taken possession thereof.  A Property
shall not be considered a Redevelopment Asset solely because such Property is
being restored to its prior condition following a casualty or condemnation.

 

“REIT”:  a Person qualifying as a real estate investment trust under
sections 856-859 of the Code and the regulations and rulings of the Internal
Revenue Service issued thereunder.

 

“Related Parties”:  with respect to any Person, such Person’s
Affiliates and the partners, directors, officers, employees, agents and advisors
of such Person and of such Person’s Affiliates.

 

“Remaining Interest Period”:  (i) in the event that the Borrower shall
fail for any reason to borrow a Loan in respect of which it shall have
requested a LIBOR Loan or to convert an Advance

 

21

 

to a LIBOR Loan after it shall have notified the Administrative Agent
of its intent to do so with respect to the Loans to be made on the Effective
Date or with respect to a conversion pursuant to Section 2.8, a period
equal to the Interest Period that the Borrower elected in respect of such LIBOR
Loan; or (ii) in the event that a LIBOR Loan shall terminate for any reason
prior to the last day of the Interest Period applicable thereto, a period equal
to the remaining portion of such Interest Period if such Interest Period had
not been so terminated; or (iii) in the event that the Borrower shall prepay or
repay all or any part of the principal amount of a LIBOR Loan, (including,
without limitation, any mandatory prepayment or a prepayment resulting from
acceleration or illegality) prior to the last day of the Interest Period
applicable thereto, a period equal to the period from and including the date of
such prepayment or repayment to but excluding the last day of such Interest
Period.

 

“Rent Roll”:  a schedule prepared by the Borrower from time to time
identifying (i) the Real Property owned by the Borrower or its Subsidiaries and
stating whether such items of Real Property are Unencumbered Assets or Subject
Property at such time, (ii) the annual base rent payable under each lease of
Real Property owned by the Borrower or any of its Subsidiaries, (iii) the
commencement and termination dates of the term of each such lease, (iv) any
renewal options with respect to such lease, (v) the Net Rentable Area of the
space demised under each such lease and (vi) such other information as the
Administrative Agent may reasonably require.

 

“Required Additional Guarantors”:  any Subsidiary required to execute and
deliver a Guaranty pursuant to Section 7.11(a).

 

“Required Lenders”:  the Lenders whose aggregate Commitment
Percentage equals or exceeds fifty-one percent (51%), provided that the
Commitment of any Defaulting Lender shall be excluded from the calculations of
Commitment Amount and Total Commitment Amount for purposes of making a
determination of Required Lenders.

 

“Required Payments”:  as defined in Section 2.7(d).

 

“Reserve Percentage”:  for any day with respect to a LIBOR Loan,
the maximum rate (expressed as a decimal) at which any lender subject thereto
would be required to maintain reserves (including, without limitation, all
base, supplemental, marginal and other reserves) under Regulation D of the
Board of Governors of the Federal Reserve System (or any successor or similar
regulations relating to such reserve requirements) against “Eurocurrency
Liabilities” (as that term is used in Regulation D or any successor or similar
regulation), if such liabilities were outstanding.  The Reserve Percentage shall be adjusted automatically on and as
of the effective date of any change in the Reserve Percentage.

 

“Responsible Official”: (a) when
used with reference to a Person other than an individual, any corporate officer
of such Person, general partner or managing member of such Person, corporate
officer of a corporate general partner or managing member of such Person, or
corporate officer of a corporate general partner of a partnership that is a
general partner of such Person or corporate managing member of a limited
liability company that is a managing member of such Person, or any other
responsible official thereof duly acting on behalf thereof, and (b) when
used with reference to a Person who is an individual, such Person.

 

22

 

“Restricted Interests”:  collectively, the Additional Interests, the
Distributions Interests and the Equity Interests.

 

“Restricted Payment”:  as to any Person, any dividend or other
distribution by such Person (whether in cash, securities or other property) with
respect to any shares of any class of equity securities or beneficial interests
of such Person, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such
shares or beneficial interests or any option, warrant or other right to acquire
any such shares or beneficial interests.

 

“Restricted Subsidiaries”:  collectively, the Subsidiaries of Borrower
that are direct or indirect owners of the Subject Properties

 

“Security Documents”:  the Assignment of Interests (and each
Assignment of Interests subsequently delivered pursuant to Section 6.2 or
Section 8.2), the Account Agreement and any further collateral assignments
to the Administrative Agent for the benefit of the Lenders, including, without
limitation, any UCC-1 financing statements delivered or authorized to be filed
by the Administrative Agent in connection therewith.

 

“Senior Debt Rating”:  the senior unsecured non-credit-enhanced
debt rating of the Borrower as determined by S&P and/or Moody’s from time
to time.

 

“Servicer”:  Midland Loan Services, Inc., and any subsequent or replacement
servicer of the Account pursuant to the Account Agreement.

 

“Special Counsel”:  McKenna Long & Aldridge LLP, special
counsel to Bank of America.

 

“S&P”:  Standard & Poor’s Ratings Group and any successor thereto.

 

“Stock”:  any and all shares, rights, interests, participations, warrants,
depositary receipts or other equivalents (however designated) of corporate
stock, including, without limitation, so-called “phantom stock,” preferred
stock and common stock.

 

“Subject Properties”:  collectively, those certain Real Properties
that are wholly owned in fee simple by Borrower, direct or indirect wholly
owned Subsidiaries of Borrower or a DownREIT Partnership (or is the subject of
a Ground Lease) consisting of retail shopping center assets more particularly
described on Exhibit “C-1”, C-2” and “C-3” and any other Real Property
from time to time wholly owned by Borrower, a direct or indirect wholly owned
Subsidiary of Borrower or a DownREIT Partnership which becomes a Subject
Property after the date hereof pursuant to Section 6.2 (or is the subject
of a Ground Lease).

 

“Subject Property Adjusted Net Operating
Income”:  for any period, the
aggregate amount of the Net Operating Income from each Subject Property during
such period, less the Capital Expense Reserve for such Subject Property during
that period.  The Borrower acknowledges
and agrees that no Subject Property shall be utilized in the calculation of
Subject Property Adjusted Net Operating Income (and the Subject Property
Adjusted Net Operating Income attributable to such Subject Property shall be
$0.00) (a) if there shall have occurred and be continuing (i) a failure to
pay when due (including any applicable period of grace) any obligation under
any Subject Property

 

23

 

Indebtedness with respect to such Subject Property, or (ii) a
failure to observe or perform any term, covenant or agreement under any of the
loan documents evidencing such Subject Property Indebtedness for such period of
time as would permit (assuming the giving of appropriate notice if required)
the holder or holders thereof or of any obligations issued thereunder to
accelerate the maturity thereof (including, without limitation, the
acceleration of any bonds relating to any Subject Property or demand for
payment or reimbursement by any “credit enhancer” or bond issuer) or
(b) upon the occurrence of any of the events described in Sections 9.1(h)
or 9.1(i) with respect to Borrower or any Restricted Subsidiary that is the
direct or indirect owner of such Subject Property (such Subject Property being
considered an “Excluded Subject Property”).

 

“Subject Property Adjusted Consolidated
Total Assets”:  on a Consolidated
basis for Borrower and its Subsidiaries, the sum (without duplication) of the
following:

 

(i)                                     the
Subject Property Operating Property Value; plus

 

(ii)                                  the
book value of Land Assets, Redevelopment Assets and New Construction Assets
that are Subject Properties (including, without limitation, all capitalized
costs incurred in connection therewith) on the last day of the fiscal quarter
just ended.

 

Subject Property Adjusted Consolidated Total
Assets shall be calculated on a pro forma basis as if assets acquired during
the relevant period were owned as of the beginning of the relevant period, and
all assets disposed of during the relevant period were not owned during any
portion of the relevant period.

 

“Subject Property Indebtedness”:  any Indebtedness secured by a Lien
encumbering a Subject Property.

 

“Subject Property Loan Documents”:  the agreements, documents and instruments
evidencing, securing or otherwise relating to the Subject Property Indebtedness
to which the holder of such Subject Property Indebtedness is a party or
intended beneficiary other than Subject Property Indebtedness encumbering an
Additional Interests Property.

 

“Subject Property Operating Property Value”:  as of any date the quotient of (i) an
amount equal to the Subject Property Adjusted Net Operating Income for all
Operating Properties that are Subject Properties in the aggregate for the four
fiscal quarters of the Borrower most recently ending as of such date, divided
by (ii) 9.0%.  For purposes of any
determination of Subject Property Operating Property Value, the following
limitations and methodology shall apply: 
(A) the Subject Property Adjusted Net Operating Income of any
Operating Property that is a Subject Property owned by a DownREIT Partnership
shall be based on the Borrower’s Interest in the Subject Property Adjusted Net
Operating Income for each such Operating Property that is a Subject Property
for the four fiscal quarters having most recently ended as of such date;
(B) in the event more than 15% of the gross base rents payable under all
leases for Properties of the Borrower, its Subsidiaries and DownREIT
Partnerships (including the Borrower’s Interest in any Properties) shall be
payable by one tenant and its Subsidiaries, then Subject Property Operating
Property Value shall be reduced by the percentage amount of such excess
multiplied by the Subject Property Operating Property Value attributable to the
Subject Properties leased or controlled by such tenant and its Subsidiaries;
and (C) in the event that the Borrower or a Subsidiary of the Borrower
shall not have

 

24

 

owned a Subject Property for the entire previous four fiscal quarters,
then for the purposes of determining the Subject Property Operating Property
Value with respect to such Operating Property that is a Subject Property, the
Subject Property Adjusted Net Operating Income for such Operating Property that
is a Subject Property shall be annualized in a manner reasonably satisfactory
to the Administrative Agent, provided, however, that to the extent that a New
Construction Asset or Redevelopment Asset becomes a Subject Property during the
relevant period, the Subject Property Adjusted Net Operating Income of such
Operating Property that is a Subject Property during such period and the
following periods shall be annualized in a manner reasonably satisfactory to
the Administrative Agent until such time as such Operating Property that is a
Subject Property has performed as an Operating Property for four (4) full
fiscal quarters.

 

“Subject Property Owners”:  the Borrower, the wholly owned Subsidiaries
of Borrower and DownREIT Partnerships indicated on Exhibits “C-1”, “C-2” and
“C-3” as the owners (or ground lessees) of the Subject Properties and any
other wholly owned Subsidiary of the Borrower or DownREIT Partnership that owns
fee title to any Real Property (or the leasehold interest with respect to Real
Property that is the subject of a Ground Lease) which becomes a Subject
Property after the date hereof pursuant to Section 6.2.

 

“Subsidiary”:  as to any Person, any corporation,
association, partnership, limited liability company, joint venture or other
business entity (A) which is required pursuant to GAAP to be consolidated
with such Person for financial reporting purposes, and (B) of which such
Person, directly or indirectly, either (i) in respect of a corporation, owns or
controls more than 50% of the outstanding Stock having ordinary voting power to
elect a majority of the board of directors or similar managing body,
irrespective of whether a class or classes shall or might have voting power by
reason of the happening of any contingency, or (ii) in respect of an association,
partnership, limited liability company, joint venture or other business entity
(other than a corporation which is provided for in (i) above), is entitled
to share, either directly or indirectly through an entity described in clause
(i) above, in more than 50% of the profits and losses, however determined
(without taking into account returns of capital to such Person as an equity
investor or payment of fees to such Person for services rendered to such
entity).

 

“Subsidiary Guarantor”: the
Subsidiaries of the Borrower listed on Schedule 4.4 and designated
thereon as a Subsidiary Guarantor, each Required Additional Guarantor, and
their successors and assigns; and “Subsidiary Guarantors” shall mean all such
guarantors, collectively.

 

“Supermajority Lenders”: the
Lender or Lenders whose aggregate Commitment Percentage exceeds sixty-six and
two-thirds percent (66.67%), provided that the Commitment of any
Defaulting Lender shall be excluded from the calculations of Commitment Amount
and Total Commitment Amount for purposes of making a determination of
Supermajority Lenders.

 

“Syndication Agent”:  The Bank of New York, as syndication agent.

 

“Tangible Net Worth”:  as of any date of determination thereof with
respect to the Borrower and its Subsidiaries, determined on a Consolidated
basis in accordance with GAAP, the remainder of (i) the amounts which would, in
conformity with GAAP, be included under “shareholder’s equity” (or any like
caption) on a Consolidated balance sheet of the Borrower and its Subsidiaries
as at such date, minus (ii) the net book value of all assets of the Borrower
and its Subsidiaries on a

 

25

 

Consolidated basis (to the extent reflected in the Consolidated balance
sheet of the Borrower at such date) which would be treated as intangibles under
GAAP, including, without limitation, goodwill (whether representing the excess
cost over book value of assets acquired or otherwise), patents, trademarks,
trade names, franchises, copyrights, licenses, service marks, rights with
respect to the foregoing and deferred charges (including, without limitation,
unamortized debt discount and expense, organization costs and research and
development costs).

 

“Taxes”:  any present or future income, stamp or other taxes, levies,
imposts, duties, fees, assessments, deductions, withholdings, or other charges
of whatever nature, now or hereafter imposed, levied, collected, withheld, or
assessed by any Governmental Authority.

 

“Total Commitment Amount”:  on any day, the sum of the Commitment
Amounts of all Lenders on such day.

 

“Unencumbered Asset”:  any Operating Property which Borrower
desires to have treated as an Unencumbered Asset and which at any time (i) is
wholly owned in fee simple by the Borrower or a DownREIT Partnership or a
direct or indirect wholly owned Subsidiary of the Borrower or a DownREIT
Partnership (or is the subject of a Ground Lease), (ii) is free and clear of
all Liens, including any Liens on any direct or indirect interest of Borrower
or any Subsidiary therein (other than Liens permitted under clauses (i), (ii),
(iii), (iv), (v) (vi), (ix) and (x) of Section 8.1), (iii) does not have
applicable to it (or to any such Ground Lease) any restriction on the pledge,
transfer, mortgage or assignment of such Operating Property or Ground Lease
(including any restriction imposed by the organizational documents of any such
Subsidiary or DownREIT Partnership, but excluding (a) any requirement in a
Ground Lease that such Ground Lease be assumed upon the assignment thereof and
(b) any restrictions on transfers applicable to an Operating Property or
Ground Lease owned by a DownREIT Partnership or a wholly owned Subsidiary of a
DownREIT Partnership, so long as any such transfer restrictions shall not
prohibit such DownREIT Partnership or such wholly owned Subsidiary of a
DownREIT Partnership from transferring such Operating Property or Ground Lease
either (x) in a manner that does not trigger the built in gains of the
applicable unit holders in such DownREIT Partnership, including, without
limitation, exchanges pursuant to Section 1031 of the Code, or (y) subject
only to the payment of any tax liability and related expenses of the applicable
unit holders in such DownREIT Partnership in connection with such transfers,
including a reimbursement for taxes imposed upon the applicable unit holders as
a result of such payment), (iv) if owned by any such Subsidiary or DownREIT
Partnership, the Stock, partnership interests or membership interests, as the
case may be, of such Subsidiary or DownREIT Partnership that are owned by the
Borrower, any Subsidiary or any DownREIT Partnership are not subject to any
pledge or security interest in favor of any Person other than the Borrower or a
Subsidiary Guarantor, (v) is not an Environmental Risk Property, (vi) does not
have, to the best of the Borrower’s knowledge, any title, survey, or other
defect which could reasonably be expected to materially and adversely affect
the value, use, financeability or marketability thereof, and (vii) is located
within the contiguous 48 states of the continental United States; and “Unencumbered
Assets” means all such Unencumbered Assets, collectively.  The Unencumbered Assets which are retail
shopping centers shall on an aggregate basis have an occupancy level of tenants
in possession and operating and which are paying base, minimum or similar
regularly scheduled fixed payments of rent (but not pass-throughs of common
area maintenance charges, operating expenses, taxes, insurance and similar
charges) in accordance with the terms of their leases of at least eighty
percent

 

26

 

(80%) of the Net Rentable Area within such Unencumbered Assets based on
bona fide arms-length tenant leases requiring current rental payments.

 

“Unencumbered Assets Coverage Ratio”:  on any date of determination the ratio of
(i) the sum of all Adjusted Net Operating Income for all Unencumbered Assets of
the Borrower and its Subsidiaries determined on a Consolidated basis in
accordance with GAAP, plus (without duplication) the Borrower’s Interest in all
Adjusted Net Operating Income for all Unencumbered Assets owned by any DownREIT
Partnerships and by wholly owned Subsidiaries of any DownREIT Partnerships, in
each case, for the period of four (4) fiscal quarters just ended prior to the
date of determination, to (ii) the portion of the Consolidated Interest Expense
(which excludes interest on unsecured Indebtedness of Joint Ventures (including
FIN 46 Entities) that are not Subsidiaries) consisting of interest on all
unsecured Indebtedness of the Borrower and its Subsidiaries for such period.

 

“Unencumbered Asset Value”:  as of any date the quotient of (i) an amount
equal to the Adjusted Net Operating Income for all Unencumbered Assets in the
aggregate for the four fiscal quarters of the Borrower most recently ending as
of such date, divided by (ii) 9.0%. For purposes of any determination of
Unencumbered Asset Value, the following limitations and methodology shall
apply:  (A) the Adjusted Net Operating
Income of any Unencumbered Asset owned by a DownREIT Partnership or a wholly
owned Subsidiary of a DownREIT Partnership shall be based on the Borrower’s
Interest in the Adjusted Net Operating Income for each such Unencumbered Asset
for the four fiscal quarters having most recently ended as of such date; (B) in
the event more than 15% of the gross base rents payable under all leases for
Properties of the Borrower, its Subsidiaries, DownREIT Partnerships and wholly
owned Subsidiaries of DownREIT Partnerships (including the Borrower’s Interest
in any Properties) shall be payable by one tenant and its Subsidiaries, then
Unencumbered Asset Value shall be reduced by the percentage amount of such
excess multiplied by the Unencumbered Asset Value attributable to the
Properties leased or controlled by such tenant and its Subsidiaries; and (C) in
the event that the Borrower or a Subsidiary of the Borrower shall not have
owned an Unencumbered Asset for the entire previous four fiscal quarters, then
for the purposes of determining the Unencumbered Asset Value with respect to
such Unencumbered Asset, the Adjusted Net Operating Income for such
Unencumbered Asset shall be annualized in a manner reasonably satisfactory to
the Administrative Agent, provided, however, that to the extent that a New
Construction Asset or Redevelopment Asset becomes an Operating Property during
the relevant period, the Adjusted Net Operating Income of such Operating
Property during such period and the following periods shall be annualized until
such time as such Operating Property has performed as an Operating Property for
four (4) full fiscal quarters.

 

1.2                                 Other Interpretive Provisions.  With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan
Document:

 

(a)                                  The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include,”
“includes” and “including” shall be deemed to be followed by the
phrase “without limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such

 

27

 

agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references in a
Loan Document to Articles, Sections, Exhibits and Schedules shall be construed
to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan
Document in which such references appear, (v) any reference to any law shall include
all statutory and regulatory provisions consolidating, amending replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time, and (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

(b)                                 In
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including;” the words “to”
and “until” each mean “to but excluding;” and the word “through”
means “to and including.”

 

(c)                                  Section headings
herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

 

1.3                                 Accounting Terms.

 

(a)                                  Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the audited
Financial Statements pursuant to Section 4.13, except as otherwise
specifically prescribed herein.

 

(b)                                 Changes
in GAAP.  If at any time any change
in GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either the Borrower or the Required Lenders
shall so request, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided  that, until so
amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

 

1.4                                 Rounding. 
Any financial ratios required to be maintained by the Borrower pursuant
to this Agreement shall be calculated by dividing the appropriate component by
the other component, carrying the result to one place more than the number of
places by which such ratio is

 

28

 

expressed herein and rounding the result up or down to the nearest
number (with a rounding-up if there is no nearest number).

 

1.5                                 Times of Day. 
Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable).

 

2.                                       AMOUNT AND TERMS OF LOANS.

 

2.1                                 Loans.  Subject
to the terms and conditions set forth in this Agreement, each of the Lenders
severally agrees to lend to the Borrower on the Effective Date the aggregate
principal amount of such Lender’s Commitment Amount, for the purposes set forth
in Section 2.15.  On the Effective
Date, the Total Commitment Amount as of the Effective Date shall be disbursed
to Borrower in a single advance.  The
Loans shall be made pro rata in accordance with each Lender’s Commitment
Percentage.  The acceptance by Borrower
of the Loans hereunder shall constitute a representation and warranty by the
Borrower that all of the conditions set forth in Section 5 have been
satisfied.  No Lender shall have any
obligation to make a Loan to the Borrower of more than the principal face
amount of its Note.

 

2.2                                 Notes.

 

(a)                                  Notes
as Evidence of Indebtedness.  The
Loan of each Lender shall be evidenced by a promissory note of the Borrower,
substantially in the form of Exhibit H, with appropriate insertions
therein as to date and principal amount (each, as endorsed or modified from
time to time, a “Note” and, collectively with the Notes of all other
Lenders, the “Notes”), payable to the order of such Lender for the
account of its Applicable Lending Office in the initial principal face amount
equal to the original amount of the Commitment of such Lender and representing
the obligation of the Borrower to pay the lesser of (a) the original amount of
the Commitment of such Lender and (b) the aggregate unpaid principal balance of
all Loans of such Lender, plus interest and other amounts due and owing to the
Lenders under the Loan Documents.

 

(b)                                 The
Notes Generally.  Each Note shall
bear interest from the date thereof on the unpaid principal balance thereof at
the applicable interest rate or rates per annum determined as provided in
Section 2.9 and shall be stated to mature on the Maturity Date.  The following information shall be recorded
by each Lender on its books:  (i) the
date and amount of the Loan of such Lender; (ii) its character as a Prime Rate
Loan, a LIBOR Loan or a combination thereof; (iii) the interest rate and
Interest Period applicable to LIBOR Loans; and (iv) each payment and prepayment
of the principal thereof; provided, that the failure of such Lender to make any
such recordation or endorsement shall not affect the obligations of the
Borrower to make payment when due of any amount owing under the Loan Documents.

 

(c)                                  By
delivery of the Notes, there shall not be deemed to have occurred, and there
has not otherwise occurred, any payment, satisfaction or novation of the
indebtedness evidenced by the “Notes” as defined in the Original Loan
Agreement, which indebtedness is instead allocated among the Lenders as of the
date hereof and evidenced by the Notes in accordance with their respective
Commitment Percentages.

 

29

 

2.3                                 Procedure for Loan Borrowings.

 

(a)                                  Intentionally
Omitted.

 

(b)                                 Intentionally
Omitted.

 

(c)                                  Intentionally
Omitted.

 

(d)                                 Funding
of Loans.  Each Lender will make its
Loan, in an amount equal to its Commitment Amount, available to the
Administrative Agent for the account of the Borrower at the office of the
Administrative Agent set forth in Section 11.2 not later than 12:00 noon
on the Borrowing Date in funds immediately available to the Administrative
Agent at such office.  The amounts so
made available to the Administrative Agent on the Borrowing Date will then,
subject to the satisfaction of the terms and conditions of this Agreement, as
determined by the Administrative Agent, be made available on such date to the
Borrower by the Administrative Agent at the office of the Administrative Agent
specified in Section 11.2 by crediting the account of the Borrower on the
books of such office with the aggregate of said amounts received by the
Administrative Agent.

 

(e)                                  Intentionally
Omitted.

 

(f)                                    Administrative
Agent’s Assumption.  Unless the
Administrative Agent shall have received prior notice from a Lender (by
telephone or otherwise, such notice to be promptly confirmed by telecopy or
other writing) that such Lender will not make available to the Administrative
Agent such Lender’s pro rata share of the Loans, the Administrative Agent may
assume that such Lender has made such share available to the Administrative
Agent on the Borrowing Date in accordance with this Section, provided that such
Lender received notice of the proposed borrowing from the Administrative Agent,
and the Administrative Agent may, in reliance upon such assumption, make
available to the Borrower on the Borrowing Date a corresponding amount.  If and to the extent such Lender shall not
have so made such pro rata share available to the Administrative Agent, such
Lender and the Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount (to the extent not previously
paid by the other), together with interest thereon for each day from the date
such amount is made available to the Borrower until the date such amount is
paid to the Administrative Agent, at a rate per annum equal to, in the case of
the Borrower, the applicable interest rate set forth in Section 2.9 for
Prime Rate Loans or LIBOR Loans, as initially requested by Borrower, and in the
case of a payment to be made by such Lender, the greater of the Federal Funds
Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation.  Such payment by the Borrower, however, shall be without prejudice
to its rights against such Lender.  If
such Lender shall pay to the Administrative Agent such corresponding amount,
such amount so paid shall constitute such Lender’s Loan as part of the Loans
for purposes of this Agreement, which Loan shall be deemed to have been made by
such Lender on the Borrowing Date applicable to such Loans, but without
prejudice to the Borrower’s rights against such Lender.

 

2.4                                 Intentionally Omitted.

 

2.5                                 Intentionally Omitted.

 

30

 

2.6                                 Repayment of Loans; Evidence of Debt.

 

(a)                                  Promise
to Pay.  The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of
each Lender the then unpaid principal amount of each Loan on the Maturity Date.

 

(b)                                 Lenders’
Accounts.  Each Lender shall
maintain in accordance with its usual practice an account or accounts
evidencing the debt of the Borrower to such Lender resulting from each Loan
made by such Lender, including the amounts of principal and interest payable and
paid to such Lender from time to time hereunder.

 

(c)                                  Administrative
Agent’s Accounts.  The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the type of Advance thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any other sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof.

 

(d)                                 Entries
Made in Accounts.  The entries made
in the accounts maintained pursuant to paragraphs (b) and (c) of this
Section shall, to the extent not inconsistent with any entries made in any
Note and absent manifest error, be prima facie evidence of the existence and
amounts of the obligations recorded therein, provided that the failure of any
Lender, or the Administrative Agent, to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Loans in accordance with the terms of this Agreement or otherwise to make
any payments in accordance with the terms of the Loan Documents.

 

(e)                                  Loans
Evidenced by Notes.  The Loans and
interest thereon shall at all times (including after assignment pursuant to
Section 11.7) be represented by one or more Notes in like form payable to
the order of the payee named therein and its registered assigns.

 

2.7                                 Prepayments of the Loans.

 

(a)                                  Voluntary
Prepayments.  The Borrower may, at
its option, prepay the Prime Rate Loans and LIBOR Loans, in whole or in part,
without premium or penalty (other than any indemnification amounts, as provided
for in Section 2.14) at any time and from time to time by notifying the
Administrative Agent in writing at least one Business Day prior to the proposed
prepayment date in the case of Loans consisting of Prime Rate Loans and at
least three Business Days prior to the proposed prepayment date in the case of
Loans consisting of LIBOR Loans, specifying the Loans to be prepaid consisting
of Prime Rate Loans, LIBOR Loans or a combination thereof, the amount to be
prepaid and the date of prepayment. 
Such notice shall be irrevocable and the amount specified in such notice
shall be due and payable on the date specified, together with accrued interest
to the date of such payment on the amount prepaid.  Upon receipt of such notice, the Administrative Agent shall
promptly notify each Lender of the contents thereof.  Partial prepayments of Prime Rate Loans and/or LIBOR Loans shall
be in an aggregate minimum principal amount of $5,000,000 or such amount plus a
whole multiple of $1,000,000 in excess thereof, or, if less, the outstanding
principal balance thereof.  Notwithstanding
the foregoing, if the outstanding principal balance of the Loans would be
reduced below $25,000,000 as a result of any such partial prepayment, then such
prepayment shall only be permitted if the Borrower prepays the entire
outstanding principal balance of the Loans. 
After giving effect to any partial prepayment with

 

31

 

respect to LIBOR Loans which were converted on the same date and which
had the same Interest Period, the outstanding principal amount of such LIBOR
Loans shall be at least (subject to this Section 2.7(a) and
Section 2.8(a)) $1,000,000
or such amount plus a whole multiple of $100,000 in excess thereof.  Any Loans prepaid shall not be readvanced.

 

(b)                                 In
General. If any prepayment is made in respect of any Advance, in whole or
in part, prior to the last day of the applicable Interest Period, the Borrower
agrees to indemnify the Lenders in accordance with Section 2.14.

 

(c)                                  Partial
Prepayments.  Each partial
prepayment of the Loans (other than Prime Rate Loans) under Section 2.7(a)
shall be accompanied by the payment of accrued interest on the principal
prepaid to the date of payment and, after payment of such interest, shall be
applied, in the absence of instruction by the Borrower, to the Lenders in
accordance with the provisions of Section 3.2.

 

2.8                                 Conversions.

 

(a)                                  Conversion
Elections.  The Borrower may elect
from time to time to convert LIBOR Loans to Prime Rate Loans by giving the
Administrative Agent at least one Business Day’s prior irrevocable notice of
such election, specifying the amount to be so converted, provided, that any
such conversion of LIBOR Loans shall only be made on the last day of the
Interest Period applicable thereto.  In
addition, the Borrower may elect from time to time to convert Prime Rate Loans
to LIBOR Loans or to convert LIBOR Loans to new LIBOR Loans by giving the
Administrative Agent at least three (3) Business Days’ prior irrevocable notice
of such election, specifying the amount to be so converted and the initial
Interest Period relating thereto, provided that any such conversion of Prime
Rate Loans to LIBOR Loans shall only be made on a Business Day and any such
conversion of LIBOR Loans to new LIBOR Loans shall only be made on the last day
of the Interest Period applicable to the LIBOR Loans which are to be converted
to such new LIBOR Loans.  Each such
notice shall be in the form of Exhibit M and must be delivered to the
Administrative Agent prior to 12:00 noon on the Business Day required by this
Section for the delivery of such notices to the Administrative Agent.  The Administrative Agent shall promptly
provide the Lenders with notice of any such election.  Prime Rate Loans and LIBOR Loans may be converted pursuant to
this Section in whole or in part, provided that conversions of Prime Rate
Loans to LIBOR Loans, or LIBOR Loans to new LIBOR Loans, shall be in an
aggregate principal amount of $5,000,000 or such amount plus a whole multiple
of $100,000 in excess thereof.

 

(b)                                 Effect
on Conversions if an Event of Default. 
Notwithstanding anything in this Section to the contrary, no Prime
Rate Loan may be converted to a LIBOR Loan, and no LIBOR Loan may be converted
to a new LIBOR Loan, if a Default or Event of Default has occurred and is
continuing either (i) at the time the Borrower shall notify the Administrative
Agent of its election to convert or (ii) on the requested Conversion Date.  In such event, such Prime Rate Loan shall be
automatically continued as a Prime Rate Loan or such LIBOR Loan shall be
automatically converted to a Prime Rate Loan on the last day of the Interest
Period applicable to such LIBOR Loan.

 

(c)                                  Conversion
not a Borrowing.  Each conversion
shall be effected by each Lender by applying the proceeds of its new Prime Rate
Loan or LIBOR Loan, as the case may be, to

 

32

 

its Advances (or portion thereof) being converted (it being understood
that such conversion shall not constitute a borrowing for purposes of Sections
4 or 5).

 

2.9                                 Interest Rate and Payment Dates.

 

(a)                                  Prior
to Maturity.  Except as otherwise
provided in Section 2.9(b), prior to the Maturity Date, the Loans shall
bear interest on the outstanding principal balance thereof at the applicable
interest rate or rates per annum set forth below:

 

	
  ADVANCES

  	
   

  	
  RATE

  
	
   

  	
   

  	
   

  
	
  Each Prime Rate Loan

  	
   

  	
  Prime Rate plus the Applicable Margin.

  
	
   

  	
   

  	
   

  
	
  Each LIBOR Loan

  	
   

  	
  LIBOR for the applicable Interest Period
  plus the Applicable Margin.

  

 

(b)                                 Event
of Default.  After the occurrence
and during the continuance of an Event of Default, the outstanding principal
balance of (a) the LIBOR Rate Loans and any overdue interest with respect
thereto shall bear interest, whether before or after the entry of any judgment
thereon, at a rate per annum equal to LIBOR for the applicable Interest Period
plus the Applicable Margin plus 2% and (b) the Prime Rate Loans and any overdue
interest with respect thereto or other amount payable under the Loan Documents
shall bear interest, whether before or after the entry of any judgment thereon,
at a rate per annum equal to the Prime Rate plus 2% (the “Default Rate”).

 

(c)                                  Interest
Payment Dates.  Accrued interest on
each Loan shall be payable in arrears on each Interest Payment Date for such
Loan, provided that (i) interest accrued pursuant to paragraph (b) of this
Section shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan, accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii)
in the event of any conversion of any LIBOR Loans prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be
payable on the effective date of such conversion.

 

(d)                                 General.  Interest on (i) Prime Rate Loans shall be
calculated on the basis of a year of 365 or 366 days, as the case may be, and
(ii) LIBOR Loans shall be calculated on the basis of a 360-day year, in each
case for the actual number of days elapsed, including the first day but
excluding the last.  Any change in the
interest rate on the Loans resulting from a change in the Prime Rate or a
Pricing Level shall become effective as of the opening of business on the day
on which such change shall become effective. 
The Administrative Agent shall, as soon as practicable, notify the
Borrower and the Lenders of the effective date and the amount of each such
change in the Prime Rate or a Pricing Level, but any failure to so notify shall
not in any manner affect the obligation of the Borrower to pay interest on the
Loans in the amounts and on the dates required.  Each determination of the Prime Rate, a LIBOR or a Pricing Level
by the Administrative Agent pursuant to this Agreement shall be conclusive and
binding on the Borrower and the Lenders absent manifest error.  At no time shall the interest rate payable
on the Loans of any Lender, together with the Facility Fee and all other
amounts payable under the Loan Documents, to the extent the same are construed
to constitute interest, exceed the Highest Lawful Rate.  If interest payable to a Lender on any date
would exceed the maximum amount permitted by the Highest Lawful Rate, such
interest payment shall automatically be reduced to such maximum permitted
amount, and interest

 

33

 

for any subsequent period, to the extent less than the maximum amount
permitted for such period by the Highest Lawful Rate, shall be increased by the
unpaid amount of such reduction.  Any
interest actually received for any period in excess of such maximum allowable
amount for such period shall be deemed to have been applied as a prepayment of
the Loans.  The Borrower acknowledges
that the Prime Rate is only one of the bases for computing interest on loans
made by the Lenders, and by basing interest payable on Prime Rate Loans on the
Prime Rate, the Lenders have not committed to charge, and the Borrower has not
in any way bargained for, interest based on a lower or the lowest rate at which
the Lenders may now or in the future make loans to other borrowers.

 

2.10                           Substituted Interest Rate.  In the event that (i) the Administrative
Agent shall have reasonably determined (which determination shall be conclusive
and binding upon the Borrower) that by reason of circumstances affecting the
interbank eurodollar market adequate and reasonable means do not exist for
ascertaining the LIBOR applicable pursuant to Section 2.9 or (ii) the
Required Lenders shall have notified the Administrative Agent that they have
reasonably determined (which determination shall be conclusive and binding on
the Borrower) that the applicable LIBOR will not adequately and fairly reflect
the cost to such Lenders of maintaining or funding loans bearing interest based
on such LIBOR, with respect to any portion of the Loans that the Borrower has
requested be made as LIBOR Loans or LIBOR Loans that will result from the
requested conversion of any portion of the Advances into LIBOR Loans (each, an
“Affected Advance”), the Administrative Agent shall promptly notify the
Borrower and the Lenders (by telephone or otherwise, to be promptly confirmed
in writing) of such determination, on or, to the extent practicable, prior to
the requested Borrowing Date or Conversion Date for such Affected
Advances.  If the Administrative Agent
shall give such notice, (a) any Affected Advances shall be made as Prime Rate
Loans, (b) the Advances (or any portion thereof) that were to have been
converted to Affected Advances shall be converted to or continued as Prime Rate
Loans and (c) any outstanding Affected Advances shall be converted, on the last
day of the then current Interest Period with respect thereto, to Prime Rate
Loans.  Until any notice under clauses
(i) or (ii), as the case may be, of this Section has been withdrawn by the
Administrative Agent (by notice to the Borrower promptly upon either (x) the
Administrative Agent having determined that such circumstances affecting the
LIBOR market no longer exist and that adequate and reasonable means do exist
for determining the LIBOR pursuant to Section 2.9 or (y) the
Administrative Agent having been notified by such Required Lenders that
circumstances no longer render the Advances (or any portion thereof) Affected
Advances), no further LIBOR Loans shall be required to be made by the Lenders
nor shall the Borrower have the right to convert all or any portion of the
Loans to LIBOR Loans.

 

2.11                           Taxes; Net Payments.

 

(a)                                  All
payments made by the Borrower or any Subsidiary Guarantor under the Loan
Documents shall be made free and clear of, and without reduction for or on
account of, any taxes, levies, imposts, deductions, charges or withholdings
required by law to be withheld from any amounts payable under the Loan
Documents.  A statement setting forth
the calculations of any amounts payable pursuant to this paragraph submitted by
a Lender to the Borrower shall be conclusive absent manifest error.  The obligations of the Borrower under this
Section shall survive the termination of this Agreement and the
Commitments and the payment of the Notes and all other amounts payable under
the Loan Documents.

 

34

 

(b)                                 Each
Lender which is a foreign corporation within the meaning of Section 1442
of the Code shall deliver to the Borrower such certificates, documents or other
evidence as the Borrower may reasonably require from time to time as are
necessary to establish that such Lender is not subject to withholding under
Section 1441 or 1442 of the Code or as may be necessary to establish,
under any law hereafter imposing upon the Borrower, an obligation to withhold
any portion of the payments made by the Borrower under the Loan Documents, that
payments to the Administrative Agent on behalf of such Lender are not subject
to withholding.

 

2.12                           Illegality. 
Notwithstanding any other provisions herein, if any law, regulation,
treaty or directive hereafter enacted, promulgated, approved or issued, or any
change in any presently existing law, regulation, treaty or directive, or in
the interpretation or application thereof, shall make it unlawful for any
Credit Party to make or maintain its LIBOR Loans as contemplated by this
Agreement, such Credit Party shall so notify the Administrative Agent and the
Administrative Agent shall forthwith give notice thereof to the other Credit
Parties and the Borrower, whereupon (i) the commitment of such Credit Party
hereunder to make LIBOR Loans or convert Prime Rate Loans to LIBOR Loans shall
forthwith be suspended and (ii) such Credit Party’s Loans then outstanding as
LIBOR Loans affected hereby, if any, shall be converted automatically to Prime
Rate Loans on the last day of the then current Interest Period applicable
thereto or within such earlier period as required by law.  If the commitment of any Credit Party with
respect to LIBOR Loans is suspended pursuant to this Section and thereafter
it is once again legal for such Credit Party to make or maintain LIBOR Loans,
such Credit Party’s commitment to make or maintain LIBOR Loans shall be
reinstated and such Credit Party shall notify the Administrative Agent and the
Borrower of such event.  Notwithstanding
the foregoing, to the extent that the conditions giving rise to the notice
requirement set forth in this Section can be eliminated by the transfer of
such Credit Party’s Loans or Commitment to another of its branches, and to the
extent that such transfer is not inconsistent with such Credit Party’s internal
policies of general application and only if, as determined by such Credit Party
in its sole discretion, the transfer of such Loan or Commitment, as the case
may be, would not otherwise adversely affect such Loans or such Credit Party,
the Borrower may request, and such Credit Party shall use reasonable efforts to
effect, such transfer.

 

2.13                           Increased Costs.  In the event that any law, regulation, treaty or directive
hereafter enacted, promulgated, approved or issued or any change in any
presently existing law, regulation, treaty or directive therein or in the
interpretation or application thereof by any Governmental Authority charged
with the administration thereof or compliance by any Credit Party (or any
corporation directly or indirectly owning or controlling such Credit Party)
with any request or directive, whether or not having the force of law, from any
central bank or other Governmental Authority, agency or instrumentality:

 

(a)                                  does
or shall subject any Credit Party to any Taxes of any kind whatsoever with
respect to any LIBOR Loans or its obligations under this Agreement to make
LIBOR Loans, or change the basis of taxation of payments to any Credit Party of
principal, interest or any other amount payable hereunder in respect of its
LIBOR Loans, including any Taxes required to be withheld from any amounts
payable under the Loan Documents (except for (i) imposition of, or change
in the rate of, tax on the overall net income of such Credit Party or its
Applicable Lending Office for any of such Advances by any jurisdiction,
including, in the case of Credit Parties incorporated in any State of the
United States, such tax imposed by the United States and (ii) any franchise,
unincorporated business or gains taxes); or

 

35

 

(b)                                 does
or shall impose, modify or make applicable any reserve, special deposit,
compulsory loan, assessment, increased cost or similar requirement against
assets held by, or deposits of, or advances or loans by, or other credit
extended by, or any other acquisition of funds by, any office of such Credit
Party in respect of its LIBOR Loans, which, in the case of LIBOR Loans, is not
otherwise included in the determination of the LIBOR;

 

and the result of any of the foregoing is to
increase the cost to such Credit Party of making, issuing, renewing, converting
or maintaining its LIBOR Loans or its commitment to make such LIBOR Loans, or
to reduce any amount receivable hereunder in respect of its LIBOR Loans, then,
in any such case, the Borrower shall pay such Credit Party, upon its demand,
any additional amounts necessary to compensate such Credit Party for such
additional cost or reduction in such amount receivable which such Credit Party
deems to be material as reasonably determined by such Credit Party; provided,
however, that nothing in this Section shall require the Borrower to
indemnify the Credit Parties with respect to withholding Taxes for which the
Borrower has no obligation under Section 2.11.  No failure by any Credit Party to demand compensation for any
increased cost during any Interest Period shall constitute a waiver of such
Credit Party’s right to demand such compensation at any time.  A statement setting forth the calculations
of any additional amounts payable pursuant to the foregoing sentence submitted
by a Credit Party to the Borrower shall be conclusive absent manifest
error.  The obligations of the Borrower
under this Section shall survive the termination of this Agreement and any
of the Commitments or the payment of the Notes and all other amounts payable
under the Loan Documents for a period of one hundred eighty (180) days and
shall thereafter terminate forever.  Failure
to demand compensation pursuant to this Section shall not constitute a
waiver of such Credit Party’s right to demand such compensation.  To the extent that any increased costs of
the type referred to in this Section are being incurred by a Credit Party
and such costs can be eliminated or reduced by the transfer of such Credit
Party’s Loans or Commitment to another of its branches, and to the extent that
such transfer is not inconsistent with such Credit Party’s internal policies of
general application and only if, as determined by such Credit Party in its sole
discretion, the transfer of such Loan or Commitment, as the case may be, would
not otherwise materially adversely affect such Loan or such Credit Party, the
Borrower may request, and such Lender shall use reasonable efforts to effect, such
transfer.

 

2.14                           Indemnification for Break
Funding Losses.  Notwithstanding
anything contained herein to the contrary, if (i) the Borrower shall fail to
borrow on the Borrowing Date, if it shall have requested a LIBOR Loan, or shall
fail to convert on a Conversion Date, after it shall have given notice to do so
in which it shall have requested a LIBOR Loan pursuant to Section 2.8, or
(ii) a LIBOR Loan shall be terminated or prepaid for any reason prior to the
last day of the Interest Period applicable thereto (including, without
limitation, any mandatory prepayment or a prepayment resulting from
acceleration or illegality), the Borrower agrees to indemnify each Credit Party
against, and to pay on demand directly to such Credit Party, any loss or expense
suffered by such Credit Party as a result of such failure to borrow or convert,
or such termination or repayment, including, without limitation, an amount, if
greater than zero, equal to:

 

A x (B-C) x D/360

 

where:

 

36

 

“A” equals such Credit Party’s pro rata share
of the Affected Principal Amount;

 

“B” equals the applicable LIBOR;

 

“C” equals the applicable LIBOR (expressed as
a decimal) in effect on or about the first day of the applicable Remaining
Interest Period, based on the applicable rates offered or bid, as the case may
be, on or about such date, for deposits in an amount equal approximately to
such Credit Party’s pro rata share of the Affected Principal Amount with an
Interest Period equal approximately to the applicable Remaining Interest
Period, as determined by such Credit Party;

 

“D” equals the number of days from and
including the first day of the applicable Remaining Interest Period to but
excluding the last day of such Remaining Interest Period;

 

and any other out-of-pocket
loss or expense (including any internal processing charge customarily charged
by such Credit Party) suffered by such Credit Party in connection with such
LIBOR Loan including, without limitation, in liquidating or employing deposits
acquired to fund or maintain the funding of its pro rata share of the Affected
Principal Amount, or redeploying funds prepaid or repaid, in amounts which
correspond to its pro rata share of the Affected Principal Amount.  A statement setting forth the calculations
of any amounts payable pursuant to this Section submitted by a Credit
Party to the Borrower shall be conclusive and binding on the Borrower absent
manifest error.  The obligations of the
Borrower under this Section shall survive the termination of this
Agreement and the Commitments and the payment of the Notes and all other
amounts payable under the Loan Documents.

 

2.15                           Use of Proceeds.  The proceeds of Loans shall be used solely (i) to repay
other Indebtedness; and (ii) for general business purposes, including, without
limitation, working capital.

 

2.16                           Capital Adequacy.  If (i) after the date hereof, the enactment or promulgation of,
or any change or phasing in of, any United States or foreign law or regulation
or in the interpretation thereof by any Governmental Authority charged with the
administration thereof, (ii) compliance with any directive or guideline from
any central bank or United States or foreign Governmental Authority (whether or
not having the force of law) promulgated or made after the date hereof, or
(iii) compliance with the Risk-Based Capital Guidelines of the Board of
Governors of the Federal Reserve System as set forth in 12 CFR Parts 208 and
225, or of the Comptroller of the Currency, Department of the Treasury, as set
forth in 12 CFR Part 3, or similar legislation, rules, guidelines, directives
or regulations under any applicable United States or foreign Governmental
Authority affects or would affect the amount of capital required to be
maintained by a Credit Party (or any lending office of such Credit Party) or
any corporation directly or indirectly owning or controlling such Credit Party
or imposes any restriction on or otherwise adversely affects such Credit Party
(or any lending office of such Credit Party) or any corporation directly or
indirectly owning or controlling such Credit Party and such Credit Party shall
have reasonably determined that such enactment, promulgation, change or
compliance has the effect of reducing the rate of return on such Credit Party’s
capital or the asset value to such Credit Party of any Loan made by such Credit
Party as a consequence, directly or indirectly, of its obligations to make and
maintain the funding of its

 

37

 

Loans at a level below that which such Credit Party could have achieved
but for such enactment, promulgation, change or compliance (after taking into
account such Credit Party’s policies regarding capital adequacy) by an amount
deemed by such Credit Party to be material, then, upon demand by such Credit
Party, the Borrower shall promptly pay to such Credit Party such additional
amount or amounts as shall be sufficient to compensate such Credit Party for
such reduction in such rate of return or asset value.  A certificate in reasonable detail as to such amounts submitted
to the Borrower and the Administrative Agent setting forth the determination of
such amount or amounts that will compensate such Credit Party for such
reductions shall be presumed correct absent manifest error.  No failure by any Credit Party to demand
compensation for such amounts hereunder shall constitute a waiver of such
Credit Party’s right to demand such compensation at any time.  Such Credit Party shall, however, use
reasonable efforts to notify the Borrower of such claim within 90 days after
the officer of such Credit Party having primary responsibility for this
Agreement has obtained knowledge of the events giving rise to such claim.  The obligations of the Borrower under this
Section shall survive the termination of this Agreement and the
Commitments and the payment of the Notes and all other amounts payable under
the Loan Documents.

 

2.17                           Administrative Agent’s Records.  The Administrative Agent’s records with
respect to the Loans, the interest rates applicable thereto, each payment by
the Borrower of principal and interest on the Loans, and fees, expenses and any
other amounts due and payable in connection with this Agreement shall be
presumptively correct absent manifest error as to the amount of the Loans, and
the amount of principal and interest paid by the Borrower in respect of such
Loans and as to the other information relating to the Loans, and amounts paid
and payable by the Borrower hereunder and under the Notes.  The Administrative Agent will when requested
by the Borrower advise the Borrower of the principal and interest outstanding
under the Loans as of the date of such request and the dates on which such
payments are due.

 

3.                                       FEES; PAYMENTS.

 

3.1                                 Fees.

 

(a)                                  The
Borrower agrees to pay to Bank of America and Lead Arranger on the Effective
Date an arrangement, commitment and loan structuring fee (the “Bank of America
Fee”), as provided in the Agreement Regarding Fees.  Bank of America shall pay to the other Lenders a commitment and
loan structuring fee in accordance with their separate agreement.

 

(b)                                 The
Borrower shall pay to the Administrative Agent, for the Administrative Agent’s
own account, an Administrative Agent’s fee as set forth in the Agreement
Regarding Fees.  The Administrative
Agent’s fee shall be payable quarterly in arrears on the first day of each
calendar quarter for the immediately preceding calendar quarter or portion
thereof.  The Administrative Agent’s fee
shall also be paid upon the Maturity Date. 
The Administrative Agent’s fee for any partial calendar quarter shall be
prorated.

 

(c)                                  The
Borrower agrees to pay any other fees payable to any Credit Party under any
separate agreement at the times so agreed upon in such separate agreements.

 

38

 

(d)                                 The
Bank of America Fee shall be paid on the date due, in immediately available
funds, to Bank of America.  The Bank of
America Fee and all other fees and amounts paid shall not be refundable under
any circumstances.

 

3.2                                 Payments; Application of Payments.  Each payment, including each prepayment, of
principal and interest on the Loans and the Bank of America Fee, the
Administrative Agent’s fees, and any other amounts due hereunder shall be made
by the Borrower to the Administrative Agent or Bank of America, as applicable,
without set-off, deduction or counterclaim, at its office set forth in
Section 11.2 in funds immediately available to the Administrative Agent at
such office by 12:00 noon on the due date for such payment.  Promptly upon receipt thereof by the
Administrative Agent, the Administrative Agent shall remit, in like funds as
received, to the Lenders who maintain any of their Loans as Prime Rate Loans or
LIBOR Loans, each such Lender’s pro rata share of such payments which are in
respect of principal or interest due on such Prime Rate Loans or LIBOR
Loans.  The failure of the Borrower to
make any such payment by such time shall not constitute a default hereunder,
provided that such payment is made on such due date, but any such payment made
after 12:00 noon on such due date shall be deemed to have been made on the next
Business Day for the purpose of calculating interest on amounts outstanding on
the Loans.  If any payment hereunder or
under the Notes shall be due and payable on a day which is not a Business Day,
the due date thereof (except as otherwise provided in the definition of
Interest Period) shall be extended to the next Business Day and interest shall
be payable at the applicable rate specified herein during such extension.  If any payment is made with respect to any
LIBOR Loans prior to the last day of the applicable Interest Period, the
Borrower shall indemnify each Lender in accordance with Section 2.14.

 

4.                                       REPRESENTATIONS AND WARRANTIES.

 

In order to induce the Administrative Agent
and the Lenders to enter into this Agreement and to make the Loans the Borrower
makes the following representations and warranties to the Administrative Agent
and each Lender:

 

4.1                                 Existence and Power.

 

(a)                                  The
Borrower (i) is a Maryland corporation duly organized and validly existing
and in good standing under the laws of Maryland, (ii) has all requisite
power and authority to own its Property and to carry on its business as now
conducted, and (iii) is in good standing and authorized to do business in
each jurisdiction in which the nature of the business conducted therein or the
Property owned therein make such qualification necessary, except where such
failure to qualify could not reasonably be expected to have a Material Adverse
Effect.

 

(b)                                 Each
Subsidiary of the Borrower (including each Subsidiary Guarantor) (i) is a
corporation, partnership, limited liability company, real estate investment
trust or business trust, is validly existing and in good standing under the
laws of the jurisdiction of its organization and has all requisite power and
authority to own its Property and to carry on its business as now conducted,
and (ii) is in good standing and authorized to do business in each other
jurisdiction in which the nature of the business conducted therein or the
Property owned therein make such qualification necessary, except where such
failure to qualify could not reasonably be expected to have a Material Adverse
Effect.

 

39

 

4.2                                 Authority.

 

(a)                                  The
Borrower has full legal power and authority to enter into, execute, deliver and
perform the terms of the Loan Documents to which it is a party and to make the
borrowings contemplated thereby, to execute, deliver and carry out the terms of
the Notes and to incur the obligations provided for herein and therein, all of
which have been duly authorized by all proper and necessary corporate action.

 

(b)                                 Each
Assignor has full legal power and authority to enter into, execute and deliver
and perform the terms of the Loan Documents to which it is a party, all of
which have been duly authorized by all proper and necessary partnership or
limited liability company action, as applicable.

 

4.3                                 Binding Agreement.

 

(a)                                  The
Loan Documents to which the Borrower or any of its Subsidiaries is a party
constitute the valid and legally binding obligations of such Person,
enforceable in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors’
rights generally.

 

(b)                                 The
execution, delivery and performance by the Borrower and its Subsidiaries of the
Loan Documents to which any such Person is a party do not violate the
provisions of any applicable statute, law (including, without limitation, any
applicable usury or similar law), rule or regulation of any Governmental
Authority.

 

4.4                                 Subsidiaries; DownREIT Partnerships.  As of the Effective Date, the Borrower has
only the Subsidiaries set forth on Schedule 4.4.  Schedule 4.4 sets forth the name
of, and the ownership interest of the Borrower in, each Subsidiary of the
Borrower and identifies each Subsidiary that is a Subsidiary Guarantor, in each
case as of the Effective Date. The shares of each corporate Subsidiary of the
Borrower that are owned by the Borrower are duly authorized, validly issued,
fully paid and nonassessable and are owned free and clear of any Liens.  The interest of the Borrower in each
non-corporate Subsidiary is owned free and clear of any Liens (other than Liens
applicable to a partner under the terms of any partnership agreement, or those
applicable to a member under the terms of any limited liability company
operating agreement,  to secure the
Borrower’s obligation to make capital contributions or similar payments
thereunder).  As of the Effective Date,
the only DownREIT Partnership is Excel Realty Partners, L.P. and the only
Subsidiaries of Excel Realty Partners, L.P. are as set forth on Schedule 4.4.  As of the Effective Date, there is no
Subsidiary of the Borrower (other than ERT Development Corporation) that is a
guarantor of any unsecured Indebtedness of Borrower (other than the Loans) that
is not also a Subsidiary Guarantor.

 

4.5                                 Litigation.

 

(a)                                  There
are no actions, suits or proceedings at law or in equity or by or before any
Governmental Authority (whether or not purportedly on behalf of the Borrower or
any Subsidiary of the Borrower) pending or, to the knowledge of the Borrower,
threatened against the Borrower or any Subsidiary of the Borrower or any of
their respective Properties or rights, which (i)

 

40

 

if adversely determined, could reasonably be expected to have a
Material Adverse Effect, (ii) call into question the validity or enforceability
of any of the Loan Documents, or (iii) could reasonably be expected to result
in the rescission, termination or cancellation of any franchise, right,
license, permit or similar authorization held by the Borrower or any Subsidiary
of the Borrower, which rescission, termination or cancellation could reasonably
be expected to have a Material Adverse Effect.

 

(b)                                 As
of the date hereof, Schedule 4.5 sets forth all actions, suits and
proceedings at law or in equity or by or before any Governmental Authority
(whether or not purportedly on behalf of the Borrower or any Subsidiary of the
Borrower) pending or, to the knowledge of the Borrower, threatened against the
Borrower, any Subsidiary of the Borrower or any of their respective Properties
or rights which, if adversely determined, could reasonably be expected to have
a Material Adverse Effect.

 

4.6                                 Required Consents.  No consent, authorization or approval of,
filing with, notice to, or exemption by, stockholders, any Governmental Authority
or any other Person not obtained is required to be obtained by the Borrower or
any of its Subsidiaries to authorize, or is required in connection with the
execution, delivery and performance of the Loan Documents or is required to be
obtained by the Borrower or any of its Subsidiaries as a condition to the
validity or enforceability of the Loan Documents.

 

4.7                                 No Conflicting Agreements.  Neither the Borrower nor any Subsidiary of
the Borrower is in default beyond any applicable grace or cure period under any
mortgage, indenture, contract or agreement to which it is a party or by which
it or any of its Property is bound, the effect of which default could
reasonably be expected to have a Material Adverse Effect.  The execution, delivery or carrying out of
the terms of the Loan Documents will not constitute a default under, or result
in the creation or imposition of, or obligation to create, any Lien upon any
Property of the Borrower or any Subsidiary of the Borrower pursuant to the
terms of any such mortgage, indenture, contract or agreement.

 

4.8                                 Compliance with Applicable Laws.  Neither the Borrower nor any Subsidiary of
the Borrower is in default with respect to any judgment, order, writ,
injunction, decree or decision of any Governmental Authority which default
could reasonably be expected to have a Material Adverse Effect. The Borrower
and each Subsidiary of the Borrower is in compliance in all material respects
with all statutes, regulations, rules and orders applicable to Borrower or such
Subsidiary of all Governmental Authorities, including, without limitation, (i)
Environmental Laws and ERISA, a violation of which could reasonably be expected
to have a Material Adverse Effect and (ii) §§856-860 of the Code, compliance
with which is required to preserve the Borrower’s status as a REIT.

 

4.9                                 Taxes.  Each of
the Borrower and its Subsidiaries has filed or caused to be filed all tax
returns required to be filed and has paid, or has filed appropriate extensions
and has made adequate provision for the payment of, all taxes shown to be due
and payable on said returns or in any assessments made against it (other than
those being contested as permitted under Section 7.4) in which the failure
to pay could reasonably be expected to have a Material Adverse Effect, and no
tax Liens have been filed with respect thereto.  The charges, accruals and reserves on the books of the Borrower
and each Subsidiary of the Borrower with respect to all federal, state, local
and other

 

41

 

taxes are, to the best knowledge of the Borrower, adequate for the
payment of all such taxes, and the Borrower knows of no unpaid assessment which
is due and payable against it or any of its Subsidiaries or any claims being
asserted which could reasonably be expected to have a Material Adverse Effect.

 

4.10                           Governmental Regulations.  Neither the Borrower nor any Subsidiary of
the Borrower is subject to regulation under the Public Utility Holding Company
Act of 1935, as amended, the Federal Power Act, as amended, or the Investment
Company Act of 1940, as amended, and neither the Borrower nor any Subsidiary of
the Borrower is subject to any statute or regulation which prohibits or
restricts the incurrence of Indebtedness under the Loan Documents, including,
without limitation, statutes or regulations relative to common or contract
carriers or to the sale of electricity, gas, steam, water, telephone, telegraph
or other public utility services.

 

4.11                           Federal Reserve Regulations; Use
of Loan Proceeds.  Neither
the Borrower nor any Subsidiary of the Borrower is engaged principally, or as
one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any Margin Stock.  No part of the proceeds of the Loans will be used, directly or
indirectly, for a purpose which violates any law, rule or regulation of any
Governmental Authority, including, without limitation, the provisions of
Regulations T, U or X of the Board of Governors of the Federal Reserve System,
as amended.  No part of the proceeds of
the Loans will be used, directly or indirectly, to purchase or carry Margin
Stock or to extend credit to others for the purpose of purchasing or carrying
Margin Stock.

 

4.12                           Plans; Multiemployer Plans.  As of the Effective Date, each of the
Borrower and its ERISA Affiliates maintains or makes contributions only to the
Plans and Multiemployer Plans listed on Schedule 4.12.  Each Plan, and, to the best knowledge of the
Borrower, each Multiemployer Plan, is in compliance in all material respects
with, and has been administered in all material respects in compliance with,
the applicable provisions of ERISA, the Code and any other applicable Federal
or state law, and no event or condition is occurring or exists concerning which
the Borrower would be under an obligation to furnish a report to the
Administrative Agent and each Lender as required by Section 7.2(d).  As of May 31, 2004, each Plan was “fully
funded”, which for purposes of this Section means that the fair market
value of the assets of such Plan is not less than the present value of the
accrued benefits of all participants in the Plan, computed on a plan
termination basis.  To the best
knowledge of the Borrower, no Plan has ceased being fully funded.

 

4.13                           Financial Statements.  The Borrower has heretofore delivered to the
Administrative Agent and the Lenders (i) copies of the audited Consolidated
Balance Sheet of the Borrower and its Consolidated Subsidiaries as of
December 31, 2003, and the unaudited Consolidated Statements of
Operations, Stockholders’ Equity and Cash Flows for the Borrower and its
Consolidated Subsidiaries for the three months ended March 31, 2004, and
(ii) the unaudited Consolidated Statements of Income and Cash Flows for the
Borrower and its Consolidated Subsidiaries for the three months ended
March 31, 2004, certified by its Chief Financial Officer (collectively,
with the related notes and schedules, the “Financial Statements”).  The Financial Statements fairly present in
all material respects the Consolidated financial condition and results of the
operations of the Borrower and its Consolidated Subsidiaries as of the dates
and for the periods indicated therein and have been prepared in conformity with
GAAP.  Except as reflected in the
Financial Statements or in the notes thereto, neither the Borrower nor any
Subsidiary of the Borrower (including any Subject Property Owner) has any
obligation or liability of any kind (whether fixed, accrued, contingent,

 

42

 

unmatured or otherwise) involving material amounts which, in accordance
with GAAP, should have been shown on the Financial Statements and was not.  Since March 31, 2004 there has been no
material adverse change in the condition (financial or otherwise), operations,
prospects or business of the Borrower and its Subsidiaries taken as a whole.

 

4.14                           Property. 
Each of the Borrower and its Subsidiaries has good and marketable title
to all of its Property, title to which is material to the Borrower or such Subsidiary,
subject to no Liens, except Permitted Liens. 
There are no unpaid or outstanding real estate or similar taxes or
assessments on or against any Real Property other than (i) real estate or other
taxes or assessments that are not yet due and payable, and (ii) such taxes as
the Borrower or any Subsidiary of the Borrower is contesting in good faith or
which individually or in the aggregate could not reasonably be expected to have
a Materially Adverse Effect.  There are
no pending eminent domain proceedings against any Real Property, and, to the
knowledge of the Borrower, no such proceedings are presently threatened or
contemplated by any Governmental Authority against any Real Property, which
pending, threatened or contemplated proceedings individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.  None of the Real Property is now damaged as
a result of any fire, explosion, accident, flood or other casualty which
individually or in the aggregate could reasonably be expected to have a
Material Adverse Effect.

 

4.15                           Franchises, Intellectual Property,
Etc.  Each of the
Borrower and its Subsidiaries possesses or has the right to use all franchises,
Intellectual Property, licenses and other rights, in each case that are material
and necessary for the conduct of its business, with no known conflict with the
valid rights of others which could reasonably be expected to have a Material
Adverse Effect.  No event has occurred
which permits or, to the best knowledge of the Borrower, after notice or the
lapse of time or both, or any other condition, could reasonably be expected to
permit, the revocation or termination of any such franchise, Intellectual
Property, license or other right and which revocation or termination could reasonably
be expected to have a Material Adverse Effect.

 

4.16                           Environmental Matters.

 

(a)                                  The
Borrower and each of its Subsidiaries is in compliance with the requirements of
all applicable Environmental Laws except for such non-compliance which could
not, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

(b)                                 No
Hazardous Substances have been (i) generated or manufactured on, transported to
or from, treated at, stored at or discharged from any Real Property in violation
of any Environmental Laws; (ii) discharged into subsurface waters under any
Real Property in violation of any Environmental Laws; or (iii) discharged from
any Real Property on or into property or waters (including subsurface waters)
adjacent to any Real Property in violation of any Environmental Laws, which
violation, in the case of any of (i), (ii) or (iii) could, either individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(c)                                  Neither
the Borrower nor any of its Subsidiaries (i) has received notice (written or
oral) or otherwise learned of any claim, demand, suit, action, proceeding,
event, condition, report, directive, lien, violation, non-compliance or
investigation indicating or concerning any potential or actual liability
(including, without limitation, potential liability for enforcement,

 

43

 

investigatory costs, cleanup costs, government response costs, removal
costs, remedial costs, natural resources damages, property damages, personal
injuries or penalties) arising in connection with (x) any non-compliance with
or violation of the requirements of any applicable Environmental Laws, or (y)
the presence of any Hazardous Substance on any Real Property (or any Real
Property previously owned by the Borrower or any Subsidiary of the Borrower) or
the release or threatened release of any Hazardous Substance into the
environment which, in either case, could, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, (ii) has
any threatened or actual liability in connection with the presence of any
Hazardous Substance on any Real Property (or any Real Property previously owned
by the Borrower or any Subsidiary of the Borrower) or the release or threatened
release of any Hazardous Substance into the environment which, in either case,
could, either individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect, (iii) has received notice of any federal or state
investigation evaluating whether any remedial action is needed to respond to
the presence of any Hazardous Substance on any Real Property (or any Real
Property previously owned by the Borrower or any Subsidiary of the Borrower) or
a release or threatened release of any Hazardous Substance into the environment
for which the Borrower or any Subsidiary of the Borrower is or may be liable
the results of which could, in either case, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, or (iv)
has received notice that the Borrower or any Subsidiary of the Borrower is or
may be liable to any Person under any Environmental Law which liability could,
either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

(d)                                 To
the best of the Borrower’s knowledge, no Real Property is located in an area
identified by the Secretary of Housing and Urban Development as an area having
special flood hazards, or if any such Real Property is located in such a
special flood hazard area, then the Borrower has obtained all insurance that is
required to be maintained by law or which is customarily maintained by Persons
engaged in similar businesses and owning similar Properties in the same general
areas in which the Borrower operates.

 

4.17                           Labor Relations.  Neither the Borrower nor any of its Subsidiaries is a party to
any collective bargaining agreement, other than the collective bargaining
agreement covering fewer than 25 employees at the Roosevelt Mall Shopping
Center in Philadelphia, Pennsylvania, and, to the best knowledge of the
Borrower, no petition has been filed or proceedings instituted by any employee
or group of employees with any labor relations board seeking recognition of a
bargaining representative with respect to the Borrower or such Subsidiary.  There are no material controversies pending
between the Borrower or any Subsidiary and any of their respective employees,
which could reasonably be expected to have a Material Adverse Effect.

 

4.18                           Setoff.  The
rights of the Administrative Agent and the Lenders with respect to the
Collateral are not subject to any setoff, withholdings or other defenses.  The Borrower and the Assignors are the
owners of the Collateral free from any lien, security interest, encumbrance,
setoff or other claim or demand other than Liens expressly permitted pursuant
to Section 8.1 and setoff rights of financial institutions against
deposits of Borrower and its Subsidiaries held by such financial institutions.

 

4.19                           Solvency.  On
the Effective Date and immediately following the making of the Loans, and after
giving effect to the application of the proceeds of such Loans:  (a) the fair value of the assets of the
Borrower and its Subsidiaries, taken as a whole, at a fair valuation, will
exceed the

 

44

 

debts and liabilities, including Contingent Obligations, of the
Borrower and its Subsidiaries, taken as a whole; (b) the present fair saleable
value of the Property of the Borrower and its Subsidiaries, taken as a whole,
will be greater than the amount that will be required to pay the probable
liability of the debts and other liabilities, subordinated, contingent or
otherwise of the Borrower and its Subsidiaries, as such debts and other
liabilities become absolute and mature; (c) the Borrower and its Subsidiaries,
taken as a whole, will be able to pay its debts and liabilities, subordinated,
contingent or otherwise, as such debts and liabilities become absolute and
mature; and (d) the Borrower and its Subsidiaries, taken as a whole, will not
have unreasonably small capital with which to conduct the business in which
they are engaged as such business is now conducted and is proposed to be
conducted hereafter.

 

4.20                           REIT Status.  The Borrower (i) has made an election pursuant to Section 856
of the Code to qualify as a REIT, (ii) has satisfied and continues to satisfy
all of the requirements under §§ 856-859 of the Code and the regulations
and rulings issued thereunder which must be satisfied for the Borrower to
maintain its status as a REIT, and (iii) is in compliance in all material
respects with all Code sections applicable to REITs generally and the
regulations and rulings issued thereunder.

 

4.21                           List of Unencumbered Assets.  A list of all the Unencumbered Assets as of
the date of this Agreement is attached hereto as Schedule 4.21.

 

4.22                           Operation of Business.  The Borrower is a self-advised and
self-managed REIT.

 

4.23                           No Misrepresentation.  No representation or warranty contained
herein and no certificate or report furnished or to be furnished by the
Borrower or any Subsidiary of the Borrower in connection with the transactions
contemplated hereby, contains or will contain a misstatement of material fact,
or, to the best knowledge of the Borrower, omits or will omit to state a
material fact required to be stated in order to make the statements herein or
therein contained not misleading in the light of the circumstances under which
made.

 

4.24                           Anti-Terrorism Laws.  Neither Borrower nor any Subsidiary
Guarantor is (or will be) a person with whom a Lender is restricted from doing
business under regulations of the Office of Foreign Asset Control (“OFAC”) of
the Department of the Treasury of the United States of America (including, those
Persons named on OFAC’s Specially Designated and Blocked Persons list) or under
any statute, executive order (including, the September 24, 2001 Executive
Order Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism), or other governmental action and is
not and shall not knowingly engage in any dealings or transactions or otherwise
knowingly be associated with such persons. 
In addition, Borrower hereby agrees to (a) take any such actions as any
Lender deems reasonably necessary, and (b) provide to any Lender any additional
information that such Lender deems reasonably necessary, from time to time in
order to ensure compliance with all applicable Laws concerning money laundering
and similar activities.

 

5.                                       CONDITIONS TO EFFECTIVENESS OF
THIS AGREEMENT.

 

The obligation of each Lender to make its
Loan shall be subject to the fulfillment of the following conditions precedent:

 

45

 

5.1                                 Evidence of Action.

 

(a)                                  The
Administrative Agent shall have received a certificate, dated the Effective
Date, of the Secretary or Assistant Secretary of the Borrower substantially in
the form of Exhibit I (i) attaching a true and complete copy of the
resolutions of its Board of Directors authorizing the execution and delivery of
the Loan Documents by the Borrower and the performance of the Borrower’s
obligations thereunder, and of all other documents evidencing other necessary
action (in form and substance reasonably satisfactory to the Administrative
Agent) taken by it to authorize the Loan Documents and the transactions
contemplated thereby, (ii) attaching a true and complete copy of its articles
of incorporation and by-laws, (iii) setting forth the incumbency of its officer
or officers who may sign the Loan Documents, including therein a signature
specimen of such officer or officers, and (iv) certifying that said corporate
charter and by-laws are true and complete copies thereof, are in full force and
effect and have not been amended or modified.

 

(b)                                 The
Administrative Agent shall have received a certificate, dated the Effective
Date, of the Secretary or Assistant Secretary of each Subsidiary Guarantor (or
such Subsidiary Guarantor’s managing partner, general partner or managing
member, as applicable) substantially in the form of Exhibit J (i)
attaching a true and complete copy of the resolutions of its Board of
Directors, Trustees or Managers, as the case may be, authorizing its execution
and delivery of the Guaranty and the performance of its obligations thereunder,
and of all other documents evidencing other necessary action (in form and
substance reasonably satisfactory to the Administrative Agent) taken by it to
authorize the Guaranty and the transactions contemplated thereby, (ii)
attaching a true and complete copy of its articles of incorporation or
corporate charter, declaration of trust or certificate of formation and, if
applicable, by-laws, operating agreement or agreement of limited liability
company, and if such certificate is from such Subsidiary Guarantor’s managing
partner, general partner or managing member, attaching a true and complete copy
of the applicable Subsidiary Guarantor’s partnership agreement or operating
agreement and other organizational documents, (iii) setting forth the
incumbency of its officer or officers who may sign the Guaranty, including
therein a signature specimen of such officer or officers, and (iv) certifying
that said organizational documents are true and complete copies thereof, are in
full force and effect and have not been amended or modified.

 

(c)                                  The
Administrative Agent shall have received a certificate, dated the Effective
Date, of the Secretary or Assistant Secretary of each Assignor substantially in
the form of Exhibit K (i)
attaching a true and complete copy of the resolutions of its Board of Directors, Trustees or Managers, as
the case may be (or such Assignor’s
managing partner, general partner or managing member), authorizing its
execution and delivery of the Assignment of Interests and the performance of
its obligations thereunder, and of all other documents evidencing other
necessary action (in form and substance reasonably satisfactory to the
Administrative Agent) taken by it to authorize the Assignment of Interests and the
transactions contemplated thereby, (ii) attaching a true and complete copy
of its articles of incorporation or corporate charter, declaration of trust or
certificate of formation and, if applicable, by-laws, operating agreement or
agreement of limited liability company, and if such certificate is from such
Assignor’s managing partner, general partner or managing member, attaching a
true and complete copy of the applicable Assignor’s partnership agreement or
operating agreement and other organizational agreements, (iii) setting
forth the incumbency of its officer or officers who may sign the Assignment of
Interests, including therein a signature specimen of such officer or officers,
and (iv) certifying that said organizational documents

 

46

 

are true and complete copies thereof, are in full force and effect and
have not been amended or modified.

 

(d)                                 The
Administrative Agent shall have received certificates of good standing for the
Borrower from the Maryland State Department of Assessments and Taxation and for
each Subsidiary Guarantor and each Assignor from the Secretary of State for the
State in which such Subsidiary Guarantor and such Assignor is incorporated or
formed, as applicable, and for the Borrower from each jurisdiction other than
Maryland in which the Borrower is qualified to do business, provided that such
Secretaries issue such certificates with respect to the Borrower.

 

5.2                                 This Agreement.  The Administrative Agent shall have received counterparts of this
Agreement signed by each of the parties hereto (or receipt by the
Administrative Agent from a party hereto of a facsimile signature page signed
by such party which shall have agreed to promptly provide the Administrative
Agent with originally executed counterparts hereof).

 

5.3                                 Notes.  The
Administrative Agent shall have received the Notes, duly executed by an
Authorized Signatory of the Borrower.

 

5.4                                 Guaranty. 
The Administrative Agent shall have received counterparts of the
Guaranty signed by each of the Subsidiary Guarantors (or receipt by the
Administrative Agent from a party hereto of a facsimile signature page signed
by such party which shall have agreed to promptly provide the Administrative
Agent with originally executed counterparts thereof).

 

5.5                                 Security Documents.    The Administrative Agent shall have
received counterparts of the Security Documents signed by each of the parties
thereto (or receipt by the Administrative Agent from a party thereto of a
facsimile signature page signed by such party which shall have agreed to
promptly provide the Administrative Agent with the originally executed
counterparts thereof). Additionally, the Administrative Agent shall have
received, at the Borrower’s expense, evidence in form and substance satisfactory
to the Administrative Agent that the Security Documents are effective to create
in favor of the Administrative Agent, for the benefit of the Lenders, a legal,
valid and enforceable first security interest in the Collateral described in
the Security Documents and that all filings, recordings, deliveries of
instruments and other actions necessary or desirable to protect and preserve
such security interests have been duly effected and that any and all consents
necessary or desirable with respect to such security interest, have been
received and remain in full force and effect as of the Effective Date.

 

5.6                                 Instruction Letter.  The Administrative Agent shall have received
counterparts of the Instruction Letter duly executed by an authorized officer
of the Servicer and by the Borrower.

 

5.7                                 Litigation. 
There shall be no injunction, writ, preliminary restraining order or
other order of any nature issued by any Governmental Authority in any respect
affecting the transactions provided for herein and no action or proceeding by
or before any Governmental Authority shall have been commenced and be pending
or, to the knowledge of the Borrower, threatened, seeking to prevent or delay
the transactions contemplated by the Loan Documents or challenging any other terms
and provisions hereof or thereof or seeking any damages in connection therewith
and the Administrative Agent shall have received a certificate of an Authorized
Signatory of the Borrower to the foregoing effects.

 

47

 

5.8                                 Opinion of Counsel to the Borrower.  The Administrative Agent shall have received
an opinion of (i) Hogan & Hartson, L.L.P., outside counsel to the Borrower,
and (ii) Steven F. Siegel, Esq., in-house counsel to the Borrower, and (iii)
counsel to each Subsidiary Guarantor and each Assignor, and their respective
general partners, managing partners or managing members, as applicable, each
addressed to the Administrative Agent and the Lenders, and each dated the
Effective Date, and each in form and substance satisfactory to Administrative
Agent, covering such matters as Administrative Agent may reasonably request.

 

5.9                                 Fees.  The Bank
of America Fee and all other fees payable to the Administrative Agent, the Lead
Arranger and  the Lenders shall have
been paid.

 

5.10                           Fees and Expenses of Special Counsel.  The fees and expenses of Special Counsel in
connection with the preparation, negotiation and closing of the Loan Documents
shall have been paid.

 

5.11                           Compliance. 
On the Effective Date and after giving effect to the Loans to be made or
created, (a) the Borrower shall be in compliance with all of the terms,
covenants and conditions hereof, (b) there shall not exist and be continuing
any Default or Event of Default, (c) the representations and warranties
contained in the Loan Documents shall be true and correct, and (d) the
aggregate outstanding principal balance of the Loans shall not exceed the Total
Commitment Amount.

 

5.12                           Loan Closing. 
All documents required by the provisions of the Loan Documents to be
executed or delivered to the Administrative Agent on or before the Effective
Date shall have been executed and shall have been delivered at the office of
the Administrative Agent set forth in Section 11.2 on or before the
Effective Date.

 

5.13                           Documentation and Proceedings.  All corporate matters and legal proceedings
and all documents and papers in connection with the transactions contemplated
by the Loan Documents shall be reasonably satisfactory in form and substance to
the Administrative Agent and the Administrative Agent shall have received all
information and copies of all documents which the Administrative Agent or the
Required Lenders may reasonably have requested in connection therewith, such
documents (where appropriate) to be certified by an Authorized Signatory of the
Borrower or proper Governmental Authorities.

 

5.14                           Required Acts and Conditions.  All acts, conditions and things (including,
without limitation, the obtaining of any necessary regulatory approvals and the
making of any filings, recordings or registrations) required to be done or
performed by the Borrower and to have happened on or prior to the Effective
Date and which are necessary for the continued effectiveness of the Loan
Documents, shall have been done or performed and shall have happened in due
compliance with all applicable laws.

 

5.15                           Approval of Special Counsel.  All legal matters in connection with the
making of each Loan shall be reasonably satisfactory to Special Counsel.

 

5.16                           Other Documents.  The Administrative Agent shall have received such other documents
and information with respect to the Borrower and its Subsidiaries or the
transactions contemplated hereby as the Administrative Agent or the Lenders
shall reasonably request.

 

48

 

5.17                           Loan to Value. 
The Administrative Agent shall have received evidence in form and
substance satisfactory to the Administrative Agent, that the sum of (a)
outstanding principal balance of the Loans on the Effective Date plus (b) the
sum of the Subject Property Indebtedness as of the Effective Date, is not
greater than seventy-five percent (75%) of the then Subject Property Adjusted
Consolidated Total Assets.

 

6.                                       COLLATERAL SECURITY; RESTRICTED INTERESTS.

 

6.1                                 Collateral. 
The obligations of the Borrower under the Loan Documents shall be
secured by (i) a perfected first priority lien or security title and security
interest to be held by the Administrative Agent for the benefit of the Lenders
in the Collateral, and (ii) such additional collateral, if any, as the
Administrative Agent for the benefit of the Lenders from time to time may
accept as security for the obligations of the Borrower under the Loan Documents
(a) with the consent of the Required Lenders, which consent may be given or
withheld in the sole discretion of the Required Lenders, or (b) which is added
pursuant to Section 6.2.  The
obligations of the Borrower under the Loan Documents shall also be guaranteed
pursuant to the terms of the Guaranty.

 

6.2                                 Substitution or Addition of
Restricted Interests. 
Provided no Default or Event of Default (other than a Default or Event
of Default under Section 8.19 or 8.20 which is being cured as a result of
the transactions contemplated by this Section 6.2) shall have occurred
hereunder or under the other Loan Documents and be continuing (or would exist
immediately after giving effect to the transactions contemplated by this
Section 6.2), the Borrower from time to time may include certain Potential
Properties owned by Borrower, its wholly owned Subsidiaries or DownREIT
Partnerships as additional Subject Properties for the purpose of replacing
existing Subject Properties or providing additional Subject Properties in order
to ensure compliance with or to cure a breach of the Borrower’s covenants
contained in Section 8.19 and Section 8.20.  Notwithstanding the foregoing, no Potential Properties shall be
included as additional Subject Properties unless and until the following
conditions precedent shall have been satisfied:

 

(a)                                  Borrower
shall have indicated to Administrative Agent in writing whether such proposed
Potential Properties are intended to be Equity Interests Properties,
Distribution Interests Properties or Additional Interests Properties and such
Potential Properties shall qualify as Subject Properties;

 

(b)                                 the
Potential Property shall be owned, directly or indirectly, one hundred percent
(100%) by Borrower, a direct or indirect wholly owned Subsidiary of Borrower or
a DownREIT Partnership and Borrower or a wholly owned Subsidiary of Borrower
shall have (i) total control over all decisions regarding the Potential
Property (other than with respect to a Potential Property owned by a DownREIT
Partnership) (including the operation, financing and disposition thereof) or
(ii) the possession, directly or indirectly, of the power to direct or cause
the direction of management and policies of the entities to which such
Potential Interests relate, whether through the ownership of voting securities,
ownership interests, by contract or otherwise, with respect to DownREIT
Partnerships;

 

(c)                                  the
Potential Property shall be a retail shopping center;

 

49

 

(d)                                 there
shall be no security interests in, liens on, or other encumbrances affecting
such Potential Property or the Borrower’s and its Subsidiaries’ direct and
indirect interests therein except security interests, liens and encumbrances
expressly permitted under Section 8.1;

 

(e)                                  solely
with respect to Potential Properties intended to constitute Collateral
Interests Properties, each of the representations set forth in the Assignment
of Interests to be executed pursuant to (f) below shall be true and correct;

 

(f)                                    solely
with respect to Potential Properties intended to constitute Collateral
Interests Properties, Borrower and any applicable Subsidiary of Borrower shall
have executed and delivered to the Administrative Agent all instruments,
documents, or agreements, including an Assignment of Interests in substantially
the same form as the Assignment of Interests delivered to Administrative Agent
on the date hereof, Acknowledgments in substantially the same form as the
Acknowledgments delivered to Administrative Agent on the date hereof and
Uniform Commercial Code financing statements, as the Administrative Agent shall
deem reasonably necessary or desirable to obtain and perfect a first priority
security interest in, or lien on, the interests related to such Potential
Property which are intended to constitute Collateral Interests;

 

(g)                                 prior
to or contemporaneously with such addition or substitution, the Borrower shall
submit to Administrative Agent a Compliance Certificate prepared on a proforma
basis (and adjusted in the best good faith estimate of the Borrower, based on
the advice of the Accountants, to give effect to such addition or substitution)
demonstrating that after giving effect to such addition or substitution, no
Default or Event of Default shall exist with respect to Section 8.19 and
Section 8.20 (and Administrative Agent shall promptly forward a copy of
such Compliance Certificate to such Lender);

 

(h)                                 the
Administrative Agent, on behalf of the Lenders, shall have received any
certificates, opinions or other information or documentation with respect to
the applicable Potential Property and related proposed Collateral Interest(s)
(if any) as the Administrative Agent, shall deem reasonably necessary or
desirable; and

 

(i)                                     after
giving effect to the inclusion of such Potential Properties as Subject
Properties, the Borrower shall be in compliance with all covenants contained
herein and in the other Loan Documents.

 

If all of the foregoing conditions precedent
shall have been satisfied, each such Potential Property shall be deemed a
Subject Property and an Equity Interests Property, Distribution Interests Property
or an Additional Interests Property (consistent with Borrower’s designation
pursuant to clause (a) above), and Administrative Agent may unilaterally amend Exhibits
“C-1”, “C-2” and “C-3”, as applicable, to give effect to such addition
and/or substitution

 

6.3                                 Sale of a Subject Property.  Provided no Default or Event of Default
shall have occurred hereunder or under the other Loan Documents and be
continuing (or would exist immediately after giving effect to the transactions
contemplated by this Section 6.3 and transactions simultaneously occurring
under Section 6.2, if any), a Subject Property Owner may from time to time
sell, transfer or otherwise convey a Subject Property (or the Borrower or a
Subsidiary may sell, transfer or convey the direct or indirect interests in
such Subject Property Owner) to a third party or

 

50

 

enter into a Joint Venture pursuant to which Borrower no longer owns
directly or indirectly 100% of the interests in a Subject Property Owner,
provided that, solely with respect to sales, transfers or conveyances of a
Collateral Interests Property or the Borrower’s or its Subsidiaries’ direct or
indirect interests therein or the consummation of any such Joint Venture, such
sale, transfer, conveyance or consummation of such a Joint Venture shall be
upon the following terms and conditions in either case:

 

(i)                                     The
Borrower shall deliver to the Administrative Agent written notice of the desire
to consummate each such sale, transfer, conveyance or Joint Venture on or
before the date on which each such sale, transfer, conveyance or Joint Venture
is to be effected;

 

(ii)                                  Prior
to or contemporaneously with such sale, transfer or conveyance or the
consummation of such Joint Venture, the Borrower shall submit to Administrative
Agent a Compliance Certificate prepared on a proforma basis (and adjusted in
the best good faith estimate of the Borrower, based on the advice of the
Accountants, to give effect to such sale, transfer or conveyance or Joint Venture)
demonstrating that after giving effect to (a) such sale, transfer or
conveyance or Joint Venture and (b) the prepayment described in (iii) below, if
any, no Default or Event of Default shall exist with respect to
Section 8.19 and Section 8.20 (and Administrative Agent shall
promptly forward a copy of such Compliance Certificate to such Lender); and

 

(iii)                               To
the extent required to remain in compliance with Borrower’s covenants set forth
in Section 8.19 and Section 8.20, the Borrower shall either (a)
provide additional Subject Properties pursuant to and in accordance with
Section 6.2 necessary to remain in compliance with Borrower’s covenants
set forth in Section 8.19 and Section 8.20 or (b) pay to the
Administrative Agent for the account of the Lenders, which payment shall be
applied to reduce the outstanding principal balance of the Loans, a release
price for such Property in an amount necessary to remain in compliance with
Borrower’s covenants set forth in Section 8.19 and Section 8.20.  Such payments shall be applied to reduce the
outstanding principal balance of the Loans; provided, that the Borrower
shall not be required to make a payment which would reduce the principal
balance below zero.

 

After giving effect to such sale, transfer or
conveyance or Joint Venture, the underlying Real Property that was the subject
of such sale, transfer or conveyance or Joint Venture shall no longer be a
Subject Property, and Administrative Agent may unilaterally amend Exhibit
“C-1”, “C-2” and “C-3”, as applicable to give effect to such sale,
transfer, conveyance or Joint Venture. 
Nothing in this Section 6.3 shall in any way be applicable to
Additional Interests or Additional Interests Properties.

 

6.4                                 Release of Collateral Interest.  Provided no Default or Event of Default
shall have occurred hereunder or under the other Loan Documents and be
continuing (or would exist immediately after giving effect to the transactions
contemplated by this Section 6.4), the Administrative Agent shall release
a Collateral Interest from the lien or security title of the Security Documents
encumbering the same upon the request of the Borrower in connection with either
(i) the payment in full by the applicable Collateral Interests Owners of the
applicable Subject Property Indebtedness with respect to such Collateral
Interest or (ii) the transfer of a property to a Subsidiary in accordance with
Section 8.2(b)(v), subject to and upon the following terms and conditions:

 

51

 

(i)                                     The
Borrower shall deliver to the Administrative Agent written notice of the desire
to obtain such release on or before the date on which each such release is to
be effected;

 

(ii)                                  Prior
to or contemporaneously with such release, the Borrower shall submit to
Administrative Agent a Compliance Certificate prepared on a proforma basis (and
adjusted in the best good faith estimate of the Borrower, based on the advice
of the Accountants, to give effect to such release) demonstrating that after
giving effect to (a) such release and (b) the prepayment described in
(iii) below, if any, no Default or Event of Default shall exist with respect to
Section 8.19 and Section 8.20 (and Administrative Agent shall
promptly forward a copy of such Compliance Certificate to such Lender); and

 

(iii)                               To
the extent required to remain in compliance with Borrower’s covenants set forth
in Section 8.19 and Section 8.20, the Borrower shall either (a)
provide additional Subject Properties pursuant to and in accordance with
Section 6.2 necessary to remain in compliance with Borrower’s covenants
set forth in Section 8.19 and Section 8.20 or (b) pay to the
Administrative Agent for the account of the Lenders, which payment shall be
applied to reduce the outstanding principal balance of the Loans, a release
price for such Property in an amount necessary to remain in compliance with
Borrower’s covenants set forth in Section 8.19 and Section 8.20.  Such payments shall be applied to reduce the
outstanding principal balance of the Loans; provided, that the Borrower
shall not be required to make a payment which would reduce the principal
balance below zero.

 

After giving effect to such release, the
underlying Real Property that was the subject of such release shall no longer
be a Subject Property, and Administrative Agent may unilaterally amend Exhibit
“C-1”, “C-2” and “C-3”, as applicable to give effect to such release.

 

7.                                       AFFIRMATIVE COVENANTS.

 

The Borrower agrees that, so long as any Loan
remains outstanding and unpaid, or any other amount is owing under any Loan
Document to any Lender or the Administrative Agent, the Borrower shall:

 

7.1                                 Financial Statements.  Maintain a standard system of accounting in
accordance with GAAP, and furnish or cause to be furnished to the
Administrative Agent and each Lender:

 

(a)                                  Annual
Statements.  As soon as available,
but in any event within 120 days after the end of each fiscal year of the
Borrower, a copy of its Consolidated Balance Sheet as at the end of such fiscal
year, together with the related Consolidated Statements of Income,
Stockholders’ Equity and Cash Flows as of and through the end of such fiscal
year, setting forth in each case in comparative form the figures for the
preceding fiscal year.  The Consolidated
Balance Sheets and Consolidated Statements of Income, Stockholders’ Equity and
Cash Flows shall be audited and certified without qualification by the
Accountants, which certification shall (i) state that the examination by such
Accountants in connection with such Consolidated financial statements has been
made in accordance with generally accepted auditing standards and, accordingly,
includes the examination, on a test basis, of evidence supporting the amounts
and disclosures in such Consolidated financial statements, and (ii) include the
opinion of such Accountants that such

 

52

 

Consolidated financial statements present fairly, in all material
respects, the Consolidated financial position of the Borrower and its
Subsidiaries, as of the date of such Consolidated financial statements, and the
Consolidated results of their operations and their cash flows for each of the
years identified therein in conformity with GAAP (subject to any change in the
requirements of GAAP).

 

(b)                                 Annual
Operating Statements and Rent Roll. 
As soon as available, but in any event within 120 days after the end of
each fiscal year of the Borrower, and, if requested by Administrative Agent,
within sixty (60) days after the end of the first three fiscal quarters of each
year of the Borrower, copies of (i) the operating statements (in a form
reasonably satisfactory to the Administrative Agent) for all Real Property of
the Borrower, and (ii) a Rent Roll, each of which shall be certified by the
Chief Financial Officer to be true, correct and complete in all material
respects.  Additionally, upon the
request of the Administrative Agent, the Borrower shall deliver to the
Administrative Agent a Rent Roll.

 

(c)                                  Quarterly
Statements.  As soon as available,
but in any event within 60 days after the end of the first three fiscal
quarters of each year of the Borrower, a copy of the unaudited Consolidated
Balance Sheet of the Borrower as at the end of each such quarterly period,
together with the related unaudited Consolidated Statements of Income and Cash Flows
for the elapsed portion of the fiscal year through the end of such period,
setting forth in each case in comparative form the figures for the
corresponding periods of the preceding fiscal year, certified by the Chief
Financial Officer as being true, correct and complete in all material respects
and as presenting fairly the Consolidated financial condition and the
Consolidated results of operations of the Borrower and its Subsidiaries.

 

(d)                                 Quarterly
Information Regarding Unencumbered Assets and Subject Properties.

 

(i)                                     Concurrently
with the delivery of the financial statements referred to in Sections 7.1(a)
and 7.1(c), a list of all the Unencumbered Assets owned by the Borrower, any
wholly owned Subsidiary of the Borrower, each DownREIT Partnership and any
wholly owned Subsidiary of a DownREIT Partnership as of the last day of such
fiscal quarter setting forth the following information with respect to each
such Unencumbered Asset as of such date: 
(i) location; (ii) percentage of the Unencumbered Asset owned by the
Borrower, any wholly owned Subsidiary of the Borrower, each DownREIT
Partnership and any wholly owned Subsidiary of a DownREIT Partnership; and
(iii) the Net Operating Income for such Unencumbered Asset during such fiscal
quarter.

 

(ii)                                  If
required by Administrative Agent, concurrently with the delivery of the
financial statements referred to in Sections 7.1(a) and 7.1(c), a list of all
the Subject Properties owned by Subsidiary of the Borrower as of the last day
of such fiscal quarter setting forth the following information with respect to
each such Subject Property as of such date: 
(i) location; (ii) the Net Operating Income for such Subject
Property during such fiscal quarter, and (iii) a list and description of the
Subject Property Indebtedness for such Subject Property.

 

(e)                                  Compliance
Certificate.  Concurrently with the
delivery of the financial statements referred to in Sections 7.1(a) and 7.1(c),
a Compliance Certificate, certified by the Chief

 

53

 

Financial Officer, setting forth in reasonable detail the computations
demonstrating the Borrower’s compliance with the provisions of Sections 8.12,
8.13, 8.14, 8.15, 8.16, 8.17, 8.18, 8.19 and 8.20.

 

(f)                                    Other
Information.  Such other information
as the Administrative Agent or any Lender may reasonably request from time to
time.

 

Administrative Agent, the Lenders and
Borrower acknowledge and agree that the Consolidated financial statements of
the Borrower that are required to be delivered pursuant hereto may include FIN
46 Entities, provided, however, that the Borrower covenants and agrees to
provide to the Administrative Agent and the Lenders simultaneously with the
delivery of such financial statements the back-up information and calculations
utilized by the Borrower in performing the calculations set forth in the
Compliance Certificate (in a form reasonably satisfactory to the Administrative
Agent).

 

7.2                                 Certificates; Other Information.  Furnish to the Administrative Agent and each
Lender:

 

(a)                                  Defaults
Under Other Indebtedness.  Prompt
written notice if:  (i) any Indebtedness
of the Borrower or any Subsidiary of the Borrower is declared or shall become
due and payable prior to its stated maturity, or called and not paid when due,
or (ii) a default that extends beyond any applicable notice or grace period
shall have occurred under any note (other than the Notes) or the holder of any
such note, or other evidence of Indebtedness, certificate or security
evidencing any such Indebtedness or any obligee with respect to any other
Indebtedness of the Borrower or any Subsidiary of the Borrower has the right to
declare any such Indebtedness due and payable prior to its stated maturity,
and, in the case of either (i) or (ii), the Indebtedness that is the subject of
(i) or (ii) is, in the aggregate, $15,000,000 or more;

 

(b)                                 Action
of Governmental Authorities.  Prompt
written notice of:  (i) receipt of
any citation, summons, subpoena, order to show cause or other document naming
the Borrower or any Subsidiary of the Borrower a party to any proceeding before
any Governmental Authority which could reasonably be expected to have a
Material Adverse Effect or which calls into question the validity or
enforceability of any of the Loan Documents, and include with such notice a
copy of such citation, summons, subpoena, order to show cause or other
document; (ii) any lapse or other termination of any Intellectual Property,
license, permit, franchise or other authorization issued to the Borrower or any
Subsidiary of the Borrower by any Person or Governmental Authority, which lapse
or termination could reasonably be expected to have a Material Adverse Effect;
and (iii) any refusal by any Person or Governmental Authority to renew or
extend any such material Intellectual Property, license, permit, franchise or
other authorization, which refusal could reasonably be expected to have a
Material Adverse Effect;

 

(c)                                  SEC
or other Governmental Reports and Filings. 
Promptly upon becoming available, if requested by the Administrative Agent
or any Lender, copies of all regular, periodic or special reports which the
Borrower or any Subsidiary of the Borrower may now or hereafter be required to
file with or deliver to any securities exchange or the Securities and Exchange
Commission, or any other Governmental Authority succeeding to the functions
thereof, pursuant to the Securities Exchange Act of 1934, as amended.

 

54

 

(d)                                 ERISA
Information.  Promptly, and in any
event within ten Business Days, after the Borrower knows or has reason to know
that any of the events or conditions enumerated below with respect to any Plan
or Multiemployer Plan has occurred or exists, a statement signed by the Chief
Financial Officer setting forth details with respect to such event or condition
and the action, if any, which the Borrower or an ERISA Affiliate proposes to
take with respect thereto; provided, however, that if such event or condition
is required to be reported or noticed to the PBGC, such statement, together
with a copy of the relevant report or notice to the PBGC, shall be furnished
promptly and in any event not later than ten days after it is reported or
noticed to the PBGC:

 

(i)                                     any
reportable event, as defined in Section 4043(b) of ERISA with respect to a
Plan, as to which the PBGC has not by regulation waived the requirement of
Section 4043(a) of ERISA that it be notified within thirty days of the
occurrence of such event (provided that a failure to meet the minimum funding
standard of Section 412 of the Code or of Section 302 of ERISA,
including, without limitation, the failure to make, on or before its due date,
a required installment under Section 412(m) of the Code or
Section 302(e) of ERISA or the disqualification of such Plan for purposes
of Section 4043(b)(1) of ERISA, shall be a reportable event regardless of
the issuance of any waivers in accordance with Section 412(d) of the Code)
and any request for a waiver under Section 412(d) of the Code for any
Plan;

 

(ii)                                  the
distribution under Section 4041 of ERISA of a notice of intent to
terminate any Plan or any action taken by the Borrower or any ERISA Affiliate
to terminate any Plan;

 

(iii)                               the
institution by the PBGC of proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Borrower or any ERISA Affiliate of a notice from a Multiemployer
Plan that such action has been taken by the PBGC with respect to such
Multiemployer Plan;

 

(iv)                              the
complete or partial withdrawal from a Multiemployer Plan by the Borrower or any
ERISA Affiliate that results in liability under Section 4201 or 4204 of
ERISA (including the obligation to satisfy secondary liability as a result of a
purchaser default) or the receipt of the Borrower or any ERISA Affiliate of
notice from a Multiemployer Plan that it is in reorganization or insolvency
pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate
or has terminated under Section 4041A of ERISA;

 

(v)                                 the
institution of a proceeding by a fiduciary of any Multiemployer Plan against
the Borrower or any ERISA Affiliate to enforce Section 515 of ERISA, which
proceeding is not dismissed within thirty days from its commencement;

 

(vi)                              the
adoption of an amendment to any Plan pursuant to Section 401(a)(29) of the
Code or Section 307 of ERISA that would result in the loss of the
tax-exempt status of the trust of which such Plan is a part or the Borrower or
any ERISA Affiliate fails to timely provide security to such Plan in accordance
with the provisions of said Sections; and

 

(vii)                           any
event or circumstance exists which may reasonably be expected to constitute
grounds for the incurrence of material liability by the Borrower or any ERISA
Affiliate

 

55

 

under Title IV of ERISA or under Sections 412(c)(11) or 412(n) of the
Code with respect to any employee benefit plan;

 

(e)                                  ERISA
Reports.  Promptly after the request
of the Administrative Agent or any Lender, copies of each annual report filed
pursuant to Section 104 of ERISA with respect to each Plan (including, to
the extent required by Section 104 of ERISA, the related financial and
actuarial statements and opinions and other supporting statements,
certifications, schedules and information referred to in Section 103 of
ERISA) and each annual report filed with respect to each Plan under
Section 4065 of ERISA; provided, however, that in the case of a
Multiemployer Plan, such annual reports shall be furnished only if they are
available to the Borrower or any ERISA Affiliate;

 

(f)                                    Notice
of Sales or Transfers.  Quarterly,
on each date that a Compliance Certificate is to be delivered pursuant to
Section 7.1(e), a list of all sales or transfers of any Unencumbered
Assets that occurred during such quarter; provided that, if during any fiscal
quarter of the Borrower any sale or transfer of an Unencumbered Asset, which
combined with all other such sales or transfers of Unencumbered Assets during
such fiscal quarter, would exceed $100,000,000 in the aggregate, then the
Borrower shall promptly provide such list and a certification of the Chief
Financial Officer as to the Borrower’s compliance with Sections 8.12 and 8.16;

 

(g)                                 Casualties
or Condemnations.  Prompt written
notice of any casualty or condemnation of any Real Property, individually or
together with any other casualty or condemnation of any Real Property in the
aggregate, if such casualty or condemnation could reasonably be expected to
have a Material Adverse Effect;

 

(h)                                 Environmental
Law Notices.  Prompt written notice
of any order, notice, claim or proceeding received by, or brought against, the
Borrower or any Subsidiary of the Borrower, or with respect to any of the Real
Property, under any Environmental Law, which could reasonably be expected to
have a Material Adverse Effect;

 

(i)                                     Management
Letters and Reports.  If requested
by the Administrative Agent, promptly thereafter, copies of all material
management letters and similar material reports provided to the Borrower by the
Accountants;

 

(j)                                     New
Subsidiary Guarantors.  Notice of
any Subsidiary (i) which Borrower is adding as a Subsidiary Guarantor in the
event that the Borrower and the then current Subsidiary Guarantors contribute
less than 80% of Adjusted Net Operating Income (as further described in
Section 7.11) as of the end of any fiscal quarter of Borrower, or (ii)
that has become a guarantor under any existing or future unsecured Indebtedness
of Borrower (as further described in Section 7.11), such notice to be
delivered to the Administrative Agent concurrently with the delivery of the
Compliance Certificate with respect to such quarter;

 

(k)                                  Changes
in Name or Fiscal Year.  Prompt
written notice of (i) any change in the Borrower’s name, with copies of all
filings with respect to such name change attached thereto, and (ii) any change
in its fiscal year from that in effect on the Effective Date.

 

(l)                                     Defaults
or Events of Default.  Prompt
written notice if there shall occur and be continuing a Default or an Event of
Default; and

 

56

 

(m)                               Other
Information.  Such other information
as the Administrative Agent or any Lender shall reasonably request from time to
time.

 

7.3                                 Legal Existence.

 

(a)                                  Borrower’s
Legal Existence.  Maintain its
status as a Maryland corporation in good standing in the State of Maryland and
in each other jurisdiction in which the failure so to do could reasonably be
expected to have a Material Adverse Effect.

 

(b)                                 Legal
Existence of Subsidiaries.  Cause
each Subsidiary of the Borrower to maintain its status as a real estate
investment trust, business trust, corporation, limited liability company or
partnership, as the case may be, in good standing in its state of formation and
in each other jurisdiction in which the failure so to do could reasonably be
expected to have a Material Adverse Effect; provided, that Borrower may cause
any Subsidiary (other than a Subsidiary Guarantor or a Restricted Subsidiary,
except as allowed by Section 8.2) to be liquidated or dissolved.

 

7.4                                 Taxes.  Pay and
discharge when due, and cause each Subsidiary of the Borrower so to do, all
Taxes, assessments and governmental charges, license fees and levies upon, or
with respect to, the Borrower or such Subsidiary and all Taxes upon the income,
profits and Property of the Borrower and its Subsidiaries, which if unpaid,
could reasonably be expected to have a Material Adverse Effect, unless and to
the extent only that such Taxes, assessments, governmental charges, license
fees and levies shall be contested in good faith and by appropriate proceedings
diligently conducted by the Borrower or such Subsidiary and such contest has
the effect of staying the collection of any Lien from any Property of the
Borrower or its Subsidiaries arising from such non-payment, and provided that
the Borrower shall give the Administrative Agent prompt notice of such contest
and that such reserve or other appropriate provision as shall be required in
accordance with GAAP (as determined by the Accountants) shall have been made therefor.

 

7.5                                 Insurance. 
Maintain, and cause each Subsidiary of the Borrower to maintain,
insurance on its Property against such risks and in such amounts as is
customarily maintained by Persons engaged in similar businesses and owning similar
Properties in the same general areas in which the Borrower or the relevant
Subsidiary operates, and file with the Administrative Agent within 10 Business
Days after request therefor a detailed list of such insurance then in effect,
stating the names of the carriers thereof, the policy numbers, the insureds
thereunder, the amounts of insurance, dates of expiration thereof, and the
Property and risks covered thereby, together with a certificate of the Chief
Financial Officer certifying that in the opinion of such officer such insurance
complies with the obligations of the Borrower under this Section, and is in
full force and effect.

 

7.6                                 Payment of Indebtedness and
Performance of Obligations. 
Pay and discharge when due, and cause each Subsidiary of the Borrower to
pay and discharge, all lawful Indebtedness, obligations and claims for labor,
materials and supplies or otherwise which, if unpaid, could reasonably be
expected to have a Material Adverse Effect, unless such Indebtedness shall be
contested in good faith and by appropriate proceedings diligently conducted by
the Borrower or such Subsidiary and such contest has the effect of staying the
collection of any Lien from any Property of the Borrower or its Subsidiaries
arising from such non-payment, and provided that the Borrower shall give the
Administrative Agent prompt notice of such contest and that such reserve or

 

57

 

other appropriate provision as shall be required in accordance with
GAAP (as determined by the Accountants) shall have been made therefor.

 

7.7                                 Maintenance of Property;
Environmental Investigations.

 

(a)                                  In
all material respects, at all times, maintain, protect and keep in good repair,
working order and condition (ordinary wear and tear excepted), and cause each
Subsidiary of the Borrower so to do, all Property necessary to the operation of
the Borrower’s or such Subsidiary’s business.

 

(b)                                 In
the event that the Administrative Agent shall have a reasonable basis for
believing that Hazardous Substances may be on, at, under or around any Real
Property in violation of any applicable Environmental Law which, individually
or in the aggregate could reasonably be expected to have a Material Adverse
Effect, promptly conduct and complete (at the Borrower’s expense) all
investigations, studies, samplings and testings relative to such Hazardous
Substances as the Administrative Agent may reasonably request.

 

7.8                                 Observance of Legal Requirements.

 

(a)                                  Observe
and comply in all respects, and cause each Subsidiary of the Borrower so to do,
with all laws, ordinances, orders, judgments, rules, regulations,
certifications, franchises, permits, licenses, directions and requirements of
all Governmental Authorities, which now or at any time hereafter may be
applicable to it, except (i) where noncompliance with any of the foregoing
(individually or in the aggregate) could not reasonably be expected to have a
Material Adverse Effect, or (ii) such thereof as shall be contested in good
faith and by appropriate proceedings diligently conducted by it and such
contest has the effect of staying the collection of any Lien from any Property
of the Borrower or its Subsidiaries arising from such noncompliance, and
provided that the Borrower shall give the Administrative Agent prompt notice of
any contest with respect to clause (ii) to the extent that noncompliance could
reasonably be expected to have a Material Adverse Effect and that such reserve
or other appropriate provision as shall be required in accordance with GAAP (as
determined by the Accountants) shall have been made therefor.

 

(b)                                 Use
and operate all of its facilities and property in compliance with all
Environmental Laws and cause each of its Subsidiaries so to do, and keep all
necessary permits, approvals, certificates, licenses and other authorizations
relating to environmental matters in effect and remain in compliance therewith
and cause each of its Subsidiaries so to do, and handle all Hazardous Materials
in compliance with all applicable Environmental Laws and cause each of its Subsidiaries
so to do, except where noncompliance with any of the foregoing (individually or
in the aggregate) could not reasonably be expected to have a Material Adverse
Effect.

 

7.9                                 Inspection of Property; Books and
Records; Discussions. 
Keep, and cause its Subsidiaries to keep, proper books of record and
account in which full, true and correct entries in conformity with GAAP and all
requirements of law shall be made of all dealings and transactions in relation
to its and its Subsidiaries’ business and activities and permit representatives
of the Administrative Agent and any Lender during normal business hours and on
reasonable prior notice to visit its offices and its Subsidiaries’ offices, to
inspect any of its Property and any of its Subsidiaries’ Property and to
examine and make copies or abstracts from any of its and its

 

58

 

Subsidiaries’ books and records as often as may reasonably be required
under the circumstances, and to discuss the business, operations, prospects,
licenses, Property and financial condition of the Borrower and its Subsidiaries
with the officers thereof and the Accountants. 
Borrower may have a representative accompany Administrative Agent or any
Lender on any such visit, inspection or discussion.

 

7.10                           Licenses, Intellectual Property.  Maintain, and cause each Subsidiary of the
Borrower to maintain, in full force and effect, all licenses, franchises,
Intellectual Property, permits, authorizations and other rights as are
necessary for the conduct of its business, the loss of which could reasonably
be expected to have a Material Adverse Effect.

 

7.11                           Additional Guarantors.  At any time after the date hereof, in the
event that, during any fiscal quarter of Borrower, Borrower and the Subsidiary
Guarantors do not own Unencumbered Assets which contribute at least eighty
percent (80%) of the Adjusted Net Operating Income for all Unencumbered Assets
of the Borrower and its Subsidiaries determined on a Consolidated basis in
accordance with GAAP, then, at the time that Borrower is to provide the
Compliance Certificate with respect to such quarter to Administrative Agent,
Borrower shall cause such Subsidiaries of Borrower, as designated by the
Borrower and approved by Administrative Agent (such approval not to be
unreasonably withheld), to execute and deliver a Guaranty to the Administrative
Agent, for the benefit of the Lenders, duly executed by such Subsidiaries
(together with certificates and attachments of a nature similar to those
described in Section 5.1(b) and (c) with respect to such Subsidiaries
and an opinion of counsel of a nature similar to those in the form required
pursuant to Section 5.8 (iii)) so that Borrower and the Subsidiary
Guarantors will again own Unencumbered Assets which contribute at least 80% of
the Adjusted Net Operating Income for all Unencumbered Assets of the Borrower
and its Subsidiaries on a Consolidated basis. 
Additionally, in the event that any Subsidiary of the Borrower, whether
presently existing or hereafter formed or acquired, which is not a Subsidiary
Guarantor at such time, shall after the date hereof become a guarantor under
any existing or future unsecured Indebtedness of Borrower, then promptly after
the Administrative Agent’s request therefor, Borrower shall cause such
Subsidiary to execute and deliver a Guaranty to the Administrative Agent, for
the benefit of the Lenders, duly executed by such Subsidiaries (together with
certificates and attachments of a nature similar to those described in
Section 5.1(b) and (c) with respect to such Subsidiaries and an
opinion of counsel of a nature similar to those in the form required pursuant
to Section 5.8 (iii)). 
Notwithstanding the foregoing, the foregoing Adjusted Net Operating
Income for all Unencumbered Assets threshold of this Section shall not be
applicable from and after the occurrence of, and during the continuance of,
(i) an Event of Default, or (ii) a reduction by S&P of its Senior
Debt Rating below BBB- or a reduction by Moody’s of its Senior Debt Rating below
Baa3 (it being understood that at such time, the Administrative Agent can
require any Subsidiary of the Borrower (other than an Excluded Subsidiary)
which has not executed a Guaranty to immediately comply with requirements of
this Section).

 

7.12                           REIT Status; Operation of Business.

 

(a)                                  Maintain
its status under §§856 et seq. of the Code as a REIT.

 

(b)                                 Carry
on all business operations of the Borrower as a self-advised, self-managed
REIT.

 

59

 

(c)                                  Manage,
or cause one or more of its Subsidiaries at all times to manage, at least 90%
of all Properties of the Borrower and its Subsidiaries.

 

(d)                                 Cause
the common stock of Borrower at all times to be listed for trading and to be
traded on the New York Stock Exchange, the American Stock Exchange or another
nationally recognized stock exchange.

 

7.13                           More Restrictive Agreements.  Should Borrower or any Subsidiary Guarantor
after the date hereof enter into any agreement or modify any existing agreement
(a “More Restrictive Agreement”) relating to any unsecured Indebtedness of Borrower or any Subsidiary
Guarantor that includes negative covenants or default provisions (or any
other provision which may have the same practical effect) which are more
restrictive against Borrower or any Subsidiary Guarantor than those set forth
in Section 8, Section 9.1(g) or Section 9.1(j) of this Agreement
(the “Original Provisions”), the Borrower shall promptly notify the
Administrative Agent and, if requested by the Required Lenders, the Borrower,
the Administrative Agent, and the Required Lenders shall (and if applicable,
the Borrower shall cause any Subsidiary Guarantor to) promptly amend this
Agreement and the other Loan Documents to include some or all of such more
restrictive provisions as determined by the Required Lenders in their sole
discretion.  The Borrower and each
Subsidiary Guarantor agree to deliver to the Administrative Agent copies of any
agreements or documents (or modifications thereof) pertaining to any such
Indebtedness as the Administrative Agent from time to time may request.  Notwithstanding the foregoing, any
amendments to provisions contained in this Agreement and the other Loan
Documents made pursuant to this Section 7.13 shall only be effective for
such period of time as the applicable More Restrictive Agreement is in full
force and effect (or continues to be more restrictive), and upon the
termination of the effectiveness of such More Restrictive Agreement (or upon
such More Restrictive Agreement becoming less restrictive than the
corresponding Original Provision), the provisions affected by such amendment
shall return to the applicable Original Provisions.

 

8.                                       NEGATIVE COVENANTS.

 

The Borrower agrees that, so long as any Loan
remains outstanding and unpaid or any other amount is owing under any Loan
Document to any Lender or the Administrative Agent the Borrower shall not,
directly or indirectly:

 

8.1                                 Liens.  Create,
incur, assume or suffer to exist any Lien upon any of its Property, whether now
owned or hereafter acquired, or permit any Subsidiary of the Borrower so to do,
except the following “Permitted Liens”: 
(i) Liens for Taxes, assessments or similar charges incurred in the
ordinary course of business which are not delinquent or the existence of which
do not otherwise violate the covenants in Section 7.4, (ii) Liens in
connection with workers’ compensation, unemployment insurance or other social
security obligations (but not ERISA and other types of similar statutory
obligations incurred in the ordinary course of business), (iii) Liens,
deposits or pledges to secure bids, tenders, contracts (other than contracts
for the payment of money), leases, statutory obligations, surety or appeal
bonds, performance bonds, completion bonds or other obligations of like nature
arising in the ordinary course of business upon Property other than the
Account, (iv) zoning ordinances, easements, rights of way, use restrictions,
exclusive use limitations in any lease of Real Property, reciprocal easement
agreements, minor defects, irregularities, and other restrictions, charges or
encumbrances affecting Real Property (whether or

 

60

 

not recorded), which do not materially adversely affect the value of
such Real Property or materially impair its use for the operation of the
business of the Borrower or such Subsidiary, (v) statutory Liens arising by
operation of law such as mechanics’, materialmen’s, carriers’, warehousemen’s
liens incurred in the ordinary course of business which are not delinquent or
the existence of which do not otherwise violate the covenants in
Section 7.6, (vi) Liens arising out of judgments or decrees which are
being contested in accordance with Section 7.8(a) or the existence of
which do not otherwise violate the covenants in Section 7.8(a) or result
in a default pursuant to Section 9.1(j), (vii) mortgages and related
financing statements and security agreements on Real Property other than the
Subject Properties, provided that the existence of such mortgages, and the
Indebtedness secured thereby, does not cause the Borrower to be in violation of
Section 8.15 or 8.16, (viii) first priority mortgages and related
financing statements and first priority security agreements on the Subject
Properties in existence on the date hereof or encumbering Real Property on or
after the date hereof which becomes a Subject Property after the date hereof
pursuant to Section 6.2 and any first priority mortgages and related
financing statements and first priority security agreements in connection with
a refinancing of any such Subject Property Indebtedness, provided that the
existence of such mortgages and the Indebtedness secured thereby does not cause
the Borrower to be in violation of Section 8.15, 8.16, 8.19 or 8.20, and
further provided, however, that prior to Borrower or any of its Subsidiaries
obtaining any such refinancing of any Collateral Interest Property, Borrower
shall provide to Administrative Agent contemporaneously with or prior to such
refinance a Compliance Certificate prepared on a proforma basis (and adjusted
in the best good faith estimate of the Borrower, based on the advice of the
Accountants, to give effect to such refinance) demonstrating that after giving
effect to such refinance, no Default or Event of Default shall exist with
respect to the covenants set forth in Section 8.19 and Section 8.20,
(ix) Liens in favor of the Borrower or any Subsidiary Guarantor upon Property
other than the Collateral, the Account, the Collateral Interest Properties, and
the Borrower’s or Assignor’s direct or indirect interests therein, provided
that the Indebtedness secured by any such Lien is held by the Borrower or such
Subsidiary Guarantor, (x) the interests of lessees and lessors under leases of
real or personal property made in the ordinary course of business which could
not reasonably be expected (individually or in the aggregate) to have a
Material Adverse Effect, (xi) Liens
on the interests of Borrower or any Subsidiary of Borrower in any Joint Venture
(including, without limitation, in any FIN 46 Entity) or in any Subsidiary of
Borrower (other than the direct or indirect interest of Borrower or Assignors
in the Account, the Collateral or any Restricted Subsidiary), provided that the
existence of such Liens, and the Indebtedness secured thereby, does not cause
the Borrower to be in violation of Section 8.15, (xii) Liens under
Capital Leases, provided that the existence of such Capital Lease, and the
indebtedness secured thereby, does not cause the Borrower to be in violation of
Section 8.15, (xiii) Liens in favor of the Administrative Agent and
the Lenders under the Loan Documents, and (xiv) Liens upon Property not
otherwise permitted by clauses (i) through (xiii) of this Section which do
not in the aggregate exceed, in principal amount, $15,000,000, other than Liens
on the Collateral, the Account, the Subject Properties and the Borrower’s
direct or indirect interest therein.

 

8.2                                 Merger, Consolidation and
Certain Dispositions of Property.

 

(a)                                  Consolidate
with, be acquired by, or merge into or with any Person, or sell, lease or
otherwise dispose of all or substantially all of its Property (in one
transaction or a series of transactions), or permit any Subsidiary Guarantor so
to do, or liquidate or dissolve, except, subject to the last sentence of this
Section 8.2(a), (i) the merger or consolidation of any Subsidiary

 

61

 

Guarantor of the Borrower into or with the Borrower, (ii) the merger or
consolidation of any two or more Subsidiary Guarantors (including any
Subsidiaries that become Subsidiary Guarantors upon the consummation of such a
transaction with a Subsidiary Guarantor), (iii) the merger or consolidation of
the Borrower or a Subsidiary Guarantor with any other Person, provided that (A)
the Borrower or such Subsidiary Guarantor is the surviving entity in such
merger or consolidation, or contemporaneously with the consummation of such
transaction the surviving entity becomes a Subsidiary Guarantor, (B) the total
book value of the assets of the entity which is merged into or consolidated
with the Borrower or such Subsidiary Guarantor is less than 35% of the total
book value of the assets of the Borrower and its Subsidiaries determined on a
Consolidated basis in accordance with GAAP immediately following such merger or
consolidation, (C) immediately prior to such merger or consolidation the
Borrower shall have provided to the Administrative Agent a Compliance
Certificate prepared on a pro-forma basis (and adjusted in the best good faith
estimate of the Borrower, based on the advice of the Accountants, to give
effect to such merger or consolidation) demonstrating that after giving effect
to such merger or consolidation, no Default shall exist with respect to any of
the covenants set forth in Sections 8.12, 8.13, 8.14, 8.15, 8.16, 8.17, 8.18,
8.19 and 8.20 (and if requested by any Lender, Administrative Agent shall
promptly forward a copy of such Compliance Certificate to such Lender) and
(D) after giving effect to such merger or consolidation, no Event of
Default shall then exist, or (iv)  the merger or consolidation of a
Subsidiary Guarantor with any other Person in which such other Person shall be
the surviving entity, the liquidation or dissolution of a Subsidiary Guarantor,
or the sale, lease or other disposition by a Subsidiary Guarantor of all or
substantially all of its Property, so long as, after giving effect to such
transaction, (x) no Default or Event of Default shall then exist, (y) such
transaction does not violate Section 8.2(c) and (z) Borrower and/or the
Subsidiary Guarantors (including any new Subsidiary Guarantors provided by the
Borrower pursuant to Section 7.11 in connection with such transaction) own
Unencumbered Assets which contribute at least 80% of the Adjusted Net Operating
Income for all Unencumbered Assets of the Borrower and its Subsidiaries
determined on a Consolidated basis in accordance with GAAP.  In the event that a Subsidiary Guarantor
shall engage in a transaction permitted by Section 8.2(a)(iv) (other than
a lease of all or substantially all of its assets), then such Subsidiary
Guarantor shall be released by Administrative Agent from liability under the
Subsidiary Guaranty, provided that the Borrower shall deliver to Administrative
Agent evidence satisfactory to Administrative Agent that (X) the Borrower
will be in compliance with all covenants of this Agreement after giving effect
to such transaction, (Y) if such transaction involves the sale or
disposition by a Subsidiary Guarantor of all or substantially all of its
Property, such Subsidiary Guarantor shall be legally dissolved after its
release from the Subsidiary Guaranty (provided further that a Subsidiary
Guarantor that has transferred substantially all of its assets may be released
from its liability under the Subsidiary Guaranty without dissolving upon the
approval of the Administrative Agent, which approval may be withheld in its
sole discretion) and (Z) the net cash proceeds from such sale or
disposition are being distributed to Borrower as part of such dissolution.  Except as set forth in the following
sentence, nothing in this Section 8.2(a) shall in any way restrict the
activities of a Subsidiary that is not a Subsidiary Guarantor.  Notwithstanding anything contained herein to
the contrary, the Borrower shall not, directly or indirectly, permit any merger
or consolidation of any Subsidiary which owns any Unencumbered Assets with CA
New Plan Fixed Rate Partnership, L.P., any DownREIT Partnership or any
Subsidiary of a DownREIT Partnership.

 

(b)                                 Permit
any Collateral Interests Owner or any Subsidiary of any Collateral Interests
Owner (other than an Excluded Collateral Interests Subsidiary) or any direct or
indirect

 

62

 

owner of any Collateral Interests Owner (other than Borrower) to
consolidate with, be acquired by, or merge into or with any Person, or sell,
lease or otherwise dispose of all or substantially all of its Property (in one
transaction or a series of transactions), or liquidate or dissolve, unless,
subject to the last sentence of this Section 8.2(b) (i) immediately prior
to such transaction the Borrower shall have provided to the Administrative
Agent a Compliance Certificate prepared on a pro-forma basis (and adjusted in
the best good faith estimate of the Borrower, based on the advice of the
Accountants, to give effect to such transaction) demonstrating that after
giving effect to such transaction and any simultaneous transaction permitted by
and in accordance with Section 6.2), no Default shall exist with respect
to the covenants set forth in Section 8.19 and Section 8.20 (and if
requested by any Lender, Administrative Agent shall promptly forward a copy of
such Compliance Certificate to such Lender), (ii) after giving effect to
such transaction, no Event of Default shall then exist, (iii) such transaction
does not violate Section 8.2(d), and (iv) if in connection with such
transaction additional Collateral Interests are proposed to be pledged to
Administrative Agent or if Administrative Agent deems it reasonably necessary
or desirable in order to maintain, obtain and/or perfect a first priority
security interest in, or lien on, the Collateral Interests affected by such
transaction which are intended to remain Collateral Interests following such
transaction, Borrower and any applicable Subsidiary of Borrower shall have
executed and delivered to the Administrative Agent all instruments, documents,
or agreements, including an Assignment of Interests in substantially the same
form as the Assignment of Interests delivered to Administrative Agent on the
date hereof, Acknowledgments in substantially the same form as the
Acknowledgments delivered to Administrative Agent on the date hereof and
Uniform Commercial Code financing statements, as the Administrative Agent shall
deem reasonably necessary or desirable to obtain and perfect a first priority
security interest in, or lien on, such Collateral Interests, provided, however,
that notwithstanding the foregoing, in no event shall Borrower permit CA New Plan
to (x) consolidate with, be acquired by, or merge into or with any Subsidiary
of Borrower that is not a Collateral Interests Owner or a Subsidiary of a
Collateral Interests Owner (other than an Excluded Collateral Interests
Subsidiary) or (y) sell, lease or otherwise dispose of all or substantially all
of its Property (in one transaction or a series of transactions) to any
Subsidiary of Borrower that is not a Collateral Interests Owner or a Subsidiary
of a Collateral Interests Owner (other than an Excluded Collateral Interests
Subsidiary).  Except as set forth in the
following sentence, nothing in this Section 8.2(b) shall in any way
restrict (A) the activities of a Subsidiary that is not a Collateral Interests
Owner, a Subsidiary of a Collateral Interests Owner or a direct or indirect
owner of any Collateral Interests Owner or (B) the activities of an Excluded
Collateral Interests Subsidiary. 
Notwithstanding anything contained herein to the contrary, the Borrower shall
not, directly or indirectly, permit any merger or consolidation of any
Subsidiary which owns any Unencumbered Assets with CA New Plan Fixed Rate
Partnership, L.P., any DownREIT Partnership or any Subsidiary of a DownREIT
Partnership.

 

(c)                                  Except
as expressly permitted by Section 8.2(a), sell, transfer, contribute,
master lease or dispose of any of its Property, either directly or indirectly,
or permit any Subsidiary Guarantor so to do, except, subject to the last
sentence of this Section 8.2(c), that if at the time thereof and immediately
after giving effect thereto, no Default shall have occurred and be continuing,
(i) any Subsidiary Guarantor may sell, transfer, contribute, master lease
or otherwise dispose of its assets to the Borrower or to any other Subsidiary
Guarantor, (ii) the Borrower may sell, transfer, contribute, master lease
or otherwise dispose of its assets (other than its direct or indirect interests
in CA New Plan, except as permitted by Section 8.2(b)) to any Subsidiary
Guarantor, provided, however, that solely with respect to transactions
involving Borrower’s direct

 

63

 

or indirect interest in a Collateral Interests Owner, in the event that
such sale, transfer, contribution, lease or other disposition is to a
Subsidiary Guarantor other than a Collateral Interests Owner or a Subsidiary of
a Collateral Interests Owner, 
immediately prior to such transaction the Borrower shall have provided
to the Administrative Agent a Compliance Certificate prepared on a pro-forma
basis (and adjusted in the best good faith estimate of the Borrower, based on
the advice of the Accountants, to give effect to such transaction)
demonstrating that after giving effect to such transaction, no Default shall
exist with respect to the covenants set forth in Section 8.19 and
Section 8.20 (and if requested by any Lender, Administrative Agent shall
promptly forward a copy of such Compliance Certificate to such Lender),
(iii) in connection with any transaction pursuant to which a Real Property
asset of Borrower or any Subsidiary Guarantor (other than a Collateral
Interests Property, except as permitted by Section 8.2(d)) is or will be
encumbered with a mortgage (as permitted under Section 8.1(vii)), the
Borrower or any Subsidiary Guarantor may transfer such asset to any Subsidiary,
(iv) Borrower or any Subsidiary Guarantor of Borrower may sell, transfer,
contribute or dispose of worn-out or obsolete Property, (v) Borrower or
any Subsidiary Guarantor may sell, transfer, contribute, master lease or otherwise
dispose of any of its assets (other than its direct or indirect interests in CA
New Plan, except as permitted by Section 8.2(b)) to any Subsidiary, so
long as, after giving effect to such transaction, Borrower and/or the
Subsidiary Guarantors (including any new Subsidiary Guarantors provided by the
Borrower pursuant to Section 7.11 in connection with such transaction) own
Unencumbered Assets which contribute at least 80% of the Adjusted Net Operating
Income for all Unencumbered Assets of the Borrower and its Subsidiaries
determined on a Consolidated basis in accordance with GAAP, and (vi) the
Borrower or any Subsidiary of the Borrower may sell, transfer, contribute,
master lease or otherwise dispose of Property in an arm’s length transaction
(or, if the transaction involves an Affiliate of the Borrower, if the
transaction complies with Section 8.8), including, without limitation, a
disposition of Property pursuant to a merger or consolidation (so long as such
merger or consolidation is not prohibited by Section 8.2(a) or 8.2(b)),
provided, that such transaction, as with respect to the Account, any of the
Collateral, any Collateral Interests Property or any Collateral Interests, or
any direct or indirect interests therein, is not prohibited by
Section 8.2(d), and further provided, however, that for any fiscal year of
the Borrower, any sale, transfer, master lease, contribution or other
disposition of Property in reliance on this clause (vi) which when combined
with all other sales, transfers, master leases, contributions or dispositions
of Property in reliance on this clause (vi) made in such fiscal year shall not
exceed 25% of the total book value of all Property of the Borrower and its
Subsidiaries determined as of the date of each such transaction.  Except as set forth in the following
sentence, nothing in this Section 8.2(c) (other than clause (vi)) shall in
any way restrict the activities of a Subsidiary that is not a Subsidiary
Guarantor.  Notwithstanding anything
contained herein to the contrary, neither the Borrower nor any Subsidiary of
the Borrower shall, directly or indirectly, sell, transfer, contribute, master
lease or dispose of any Unencumbered Assets to CA New Plan Fixed Rate
Partnership, L.P., any DownREIT Partnership or any Subsidiary of a DownREIT Partnership
other than in connection with any transaction which is otherwise permitted
pursuant to this Section 8.2(c) pursuant to which such Unencumbered Asset
will no longer constitute an Unencumbered Asset as a result of such
transaction.

 

(d)                                 Except
as expressly permitted by Section 8.2(a), Section 8.2(b) or
Section 8.2(c), sell, transfer, contribute, master lease or dispose of the
Account, any of the Collateral, any Collateral Interests Property or any
Collateral Interests, either directly or indirectly, or permit any Collateral
Interests Owner, any Subsidiary of any Collateral Interests Owner or any direct
or indirect owner of a Collateral Interests Owner so to do, except, subject to
the last sentence of this

 

64

 

Section 8.2(d), that if at the time thereof and immediately after
giving effect thereto, no Default shall have occurred and be continuing,
(i) any Collateral Interests Owner, any Subsidiary of any Collateral
Interests Owner or any direct or indirect owner of a Collateral Interests Owner
may sell, transfer, contribute or dispose of worn-out or obsolete Property,
(ii) Borrower (as with respect to any Collateral Interests), any
Collateral Interests Owner, any Subsidiary of any Collateral Interests Owner or
any direct or indirect owner of a Collateral Interests Owner may sell,
transfer, contribute, master lease or otherwise dispose of its assets to any
other Collateral Interests Owner or any other Subsidiary of any Collateral
Interests Subsidiary, provided, however, if in connection with such
transaction  Administrative Agent deems
it reasonably necessary or desirable in order to maintain, obtain and/or
perfect a first priority security interest in, or lien on, the Collateral
Interests affected by such transaction which are intended to remain Collateral
Interests following such transaction, Borrower and any applicable Subsidiary of
Borrower shall have executed and delivered to the Administrative Agent all
instruments, documents, or agreements, including an Assignment of Interests in
substantially the same form as the Assignment of Interests delivered to
Administrative Agent on the date hereof, Acknowledgments in substantially the
same form as the Acknowledgments delivered to Administrative Agent on the date
hereof and Uniform Commercial Code financing statements, as the Administrative
Agent shall deem reasonably necessary or desirable to obtain and perfect a
first priority security interest in, or lien on, such Collateral Interests,
(iii) in connection with any transaction pursuant to which a Collateral
Interests Property is or will be encumbered with a mortgage (as permitted under
Section 8.1(viii)), any Collateral Interests Owner and/or any Subsidiary
of any Collateral Interests Owner (other than CA New Plan), as applicable, may
transfer such asset to a newly formed direct or indirect wholly owned
Subsidiary of Borrower which is established as a special purpose entity to own
Real Property or equity interests related thereto in a bankruptcy remote
manner, (iv) any Collateral Interests Owner or any Subsidiary of a
Collateral Interests Owner may sell, transfer, contribute, master lease or
dispose of its assets to Borrower or a Subsidiary of Borrower, provided that
after giving effect to such transaction, no Default shall exist with respect to
the covenants set forth in Section 8.19 and Section 8.20, and
(v) Borrower, any Collateral Interests Owner, any Subsidiary of any
Collateral Interests Owner or any direct or indirect owner of a Collateral Interests
Owner may sell, transfer, contribute, master lease or otherwise dispose of a
Collateral Interests Property or a direct or indirect interest in a Collateral
Interests Property in an arm’s length transaction to a third party, including,
without limitation, a disposition of such Property pursuant to a merger or
consolidation (so long as such merger or consolidation is not prohibited by
Section 8.2(a) or (b)), provided that such sale, transfer, master lease
contribution or other disposition complies with Section 6.3 and Section 8.2(c)(vi).  Except as set forth in the following
sentence, nothing in this Section 8.2(d) shall in any way restrict the
activities of (x) Borrower with respect to Borrower’s assets other than Borrower’s
direct or indirect interests in the Account, any of the Collateral, any
Collateral Interests Property or any Collateral Interests or (y) a Subsidiary
that is not a Collateral Interests Owner, a Subsidiary of a Collateral
Interests Owner or a direct or indirect owner of a Collateral Interests Owner,
or (z) an Excluded Collateral Interests Subsidiary.  Notwithstanding anything contained herein to the contrary,
neither the Borrower nor any Subsidiary of the Borrower shall, directly or
indirectly, sell, transfer, contribute, master lease or dispose of any
Unencumbered Assets to CA New Plan Fixed Rate Partnership, L.P., any DownREIT
Partnership or any Subsidiary of a DownREIT Partnership other than in
connection with any transaction which is otherwise permitted pursuant to this
Section 8.2(d) pursuant to which such Unencumbered Asset will no longer
constitute an Unencumbered Asset as a result of such transaction.

 

65

 

8.3                                 Investments, Loans, Etc.  At any time, purchase or otherwise acquire,
hold or invest in the Stock of, or any other interest in, any Person, or make
any loan or advance to, or enter into any arrangement for the purpose of
acquiring, holding or investing in or loaning or advancing to, or make any
other investment, whether by way of capital contribution, time deposit or
otherwise, in or with any Person, or permit any Subsidiary of the Borrower so
to do, (all of which are sometimes referred to herein as “Investments”,
it being understood, without limitation, that the provision by Borrower or any
Subsidiary of guarantees and/or letters of credit to other Persons shall not
constitute Investments but shall instead constitute Indebtedness) except the
following (to the extent that maintaining any thereof would not at any time
violate the requirements of Section 856(c) of the Code):

 

(a)                                  demand
deposits, certificates of deposit, bankers acceptances and domestic and
eurodollar time deposits with any Lender, or any other commercial bank, trust
company or national banking association incorporated under the laws of the
United States or any State thereof and having undivided capital, surplus and
undivided profits exceeding $500,000,000 and a long term debt rating of A or
A2, as determined, respectively, by S&P and Moody’s;

 

(b)                                 short-term
direct obligations of the United States of America or agencies thereof whose
obligations are guaranteed by the United States of America;

 

(c)                                  securities
commonly known as “commercial paper” issued by a corporation organized and
existing under the laws of the United States or any State thereof which at the
time of purchase are rated by S&P or Moody’s at not less than “A1” or “P1,”
respectively;

 

(d)                                 mortgage-backed
securities guaranteed by the Governmental National Mortgage Association, the
Federal National Mortgage Association or the Federal Home Loan Mortgage
Corporation and other mortgage-backed bonds which at the time of purchase are
rated by S&P or Moody’s at not less than “Aa” or “AA,” respectively;

 

(e)                                  repurchase
agreements having a term not greater than 90 days and fully secured by
securities described in the foregoing paragraph (b) or (d) with banks described
in the foregoing paragraph (a) or with financial institutions or other
corporations having total assets in excess of $50,000,000;

 

(f)                                    shares
of “money market funds” registered with the SEC under the Investment Company
Act of 1940 which maintain a level per-share value, invest principally in the
investments described in one or more of the foregoing paragraphs (a) through
(e) and have total assets of in excess of $50,000,000;

 

(g)                                 Real
Property;

 

(h)                                 Subject
to Section 8.17, equity investments in any Person (other than
Subsidiaries) and Notes Receivable investments;

 

(i)                                     Subject
to Section 8.17, Investments (debt or equity) in Subsidiaries of the
Borrower;

 

66

 

(j)                                     investments
in respect of (1) equipment, inventory and other tangible personal property or
intangible property acquired in the ordinary course of business, (2) current
trade and customer accounts receivable for services rendered in the ordinary
course of business, (3) advances to employees for travel expenses other
company-related expenses, and (4) prepaid expenses made in the ordinary course
of business;

 

(k)                                  Hedging
Agreements made in connection with any Indebtedness;

 

(l)                                     repurchases
of any common or preferred stock or other equity interests (or securities
convertible into such interests) in the Borrower that have been previously
issued by the Borrower which do not exceed, in any calendar year, (1) 10% of
the aggregate outstanding shares of common and preferred stock and other equity
interests in Borrower as of the date hereof, in any combination, plus (2) 10%
of the aggregate of any additional shares of common and preferred stock and
other equity interests in Borrower issued after the date hereof, in any
combination;

 

(m)                               redemptions
of preferred stock of the Borrower in accordance with the terms thereof;

 

(n)                                 redemptions
for cash or common Stock of the Borrower of units of limited partner interests
or limited liability company interests in a DownREIT Partnership;

 

(o)                                 loans
or advances to employees of the Borrower, provided that all such loans in the
aggregate do not at any time exceed $25,000,000 in the aggregate;

 

(p)                                 Capital
Leases; and

 

(q)                                 subject
to Section 8.17, any other Investments not included in paragraphs (a)
through (p) deemed appropriate by the Borrower (provided that in no event shall
Investments made in reliance upon the exception set forth in this paragraph (q)
exceed $75,000,000 in any fiscal year of Borrower).

 

8.4                                 Business Changes.  Change in any material respect the nature of the business of the
Borrower or its Subsidiaries as conducted on the Effective Date.

 

8.5                                 Amendments to Organizational
Documents.  Amend or otherwise
modify its corporate charter or by-laws in any way (other than in connection
with the issuance or classification of preferred stock of the Borrower) which
would adversely affect the interests of the Administrative Agent and the
Lenders under any of the Loan Documents, or permit any Subsidiary of the
Borrower to amend its organizational documents in a manner which could have the
same result.

 

8.6                                 Intentionally Omitted.

 

8.7                                 Sale and Leaseback.  Enter into any arrangement with any Person
providing for the leasing by it of Property which has been or is to be sold or
transferred by it to such Person or to any other Person to whom funds have been
or are to be advanced by such Person on the security of such Property or its
rental obligations, or permit any Subsidiary of the Borrower so to do, except
for sale and leasing transactions described herein for which the combined
selling price of all Property subject to all such transactions does not exceed
$100,000,000 in any fiscal year of Borrower.

 

67

 

8.8                                 Transactions with Affiliates.  Become a party to any transaction in an
amount that exceeds $100,000 with an Affiliate unless the terms and conditions
relating thereto (i) have been approved by a majority of the disinterested
directors of the Borrower, (ii) have been approved by a majority of votes cast
by the stockholders of the Borrower, or (iii) are upon fair and reasonable
terms, no less favorable to the Borrower or its Subsidiaries than would be
obtained in a comparable arm’s-length transaction with a Person not an Affiliate
of the Borrower or its Subsidiary, or permit any Subsidiary of the Borrower so
to do.

 

8.9                                 Issuance of Additional Capital
Stock by Subsidiary Guarantors. 
Permit any Subsidiary Guarantor to issue any additional Stock or other
equity interest of such Subsidiary Guarantor, other than the issuance of
partnership or limited liability company units in a DownREIT Partnership which
is a Subsidiary Guarantor, provided that such units are issued in consideration
of the contribution to the DownREIT Partnership of assets qualifying as “real
estate assets” under Section 856(c) of the Code.

 

8.10                           Hedging Agreements.  Enter into, or permit any of its
Subsidiaries to enter into, any Hedging Agreement, other than Hedging
Agreements entered into in the ordinary course of business to hedge or mitigate
interest rate risks to which the Borrower or any Subsidiary of the Borrower is
exposed in the conduct of its business or the management of its liabilities.

 

8.11                           Restricted Payments.  Make Restricted Payments, except that:

 

(i)                                     except
as set forth in clause (ii) below, the Borrower may declare and pay dividends
payable with respect to its equity securities in any fiscal quarter of the
Borrower if after giving effect to such dividend, such dividend, when added to
the amount of all other such dividends paid in the same fiscal quarter and the
preceding three (3) fiscal quarters, would not exceed the greater of (A)
ninety-five percent (95%) of its Funds from Operations for the four fiscal
quarters ending prior to the quarter in which such dividend is paid or (B) the
minimum amount of such dividends required under the Code to enable the Borrower
to continue to maintain its status under the Code as a REIT, as evidenced (in
the case of clause (B)) by a certification of Chief Financial Officer
containing calculations in reasonable detail satisfactory in form and substance
to Administrative Agent;

 

(ii)                                  if
an Event of Default under Section 9.1(a) or (b) has occurred and is
continuing, the Borrower may declare and pay dividends with respect to its
equity securities which shall not exceed the minimum amount of such dividends
required under the Code to enable the Borrower to continue to maintain its
status under the Code as a REIT, as evidenced by a certification of Chief
Financial Officer containing calculations in reasonable detail reasonably
satisfactory in form and substance to Administrative Agent;

 

(iii)                               the
Borrower may effect Stock repurchases to the extent permitted by Sections
8.3(l) or 8.3(m);

 

(iv)                              the
Borrower may effect “cashless exercises” of options granted under the
Borrower’s stock option plans;

 

(v)                                 the
Borrower may distribute rights or equity securities under any rights plan
adopted by the Borrower; and

 

68

 

(vi)                              the
Borrower may declare and pay dividends (or effect Stock splits or reverse Stock
splits) with respect to its equity securities payable solely in additional
shares of its equity securities.

 

8.12                           Unencumbered Assets Coverage Ratio.  Permit the Unencumbered Assets Coverage
Ratio to be less than 2.0:1.0 at any time.

 

8.13                           Fixed Charge Coverage Ratio.  Permit the Fixed Charge Coverage Ratio to be
less than 1.75:1.0 at any time.

 

8.14                           Minimum Tangible Net Worth.  Permit the Tangible Net Worth of the
Borrower and its Subsidiaries determined on a Consolidated basis in accordance
with GAAP at any time to be less than the sum of (i) $1,278,400,000, plus
(ii) 80% of the aggregate net proceeds received by the Borrower from and after
the Effective Date in connection with the issuance of any capital stock of the
Borrower.

 

8.15                           Maximum Total Indebtedness.

 

(a)                                  Permit
at any time Consolidated Total Indebtedness to be more than 57.5% of Adjusted
Consolidated Total Assets at such time, or

 

(b)                                 Permit
at any time the portion of the Consolidated Total Indebtedness (which shall
exclude Indebtedness of FIN 46 Entities and other Joint Ventures that are not
Subsidiaries) consisting of Consolidated secured Indebtedness of Borrower and
its Subsidiaries at such time to exceed 40% of Adjusted Consolidated Total
Assets at such time.

 

8.16                           Indebtedness to Unencumbered
Assets Ratio.  Permit at
any time the portion of the Consolidated Total Indebtedness (which shall
exclude Indebtedness of FIN 46 Entities and other Joint Ventures that are not
Subsidiaries) consisting of Consolidated unsecured Indebtedness of the Borrower
and its Subsidiaries at such time to be more than 55% of Unencumbered Asset
Value at such time.

 

8.17                           Maximum Book Value of Ancillary
Assets.  Permit the book value
of the Ancillary Assets at any time to be more than 25% of the Adjusted
Consolidated Total Assets of the Borrower and its Subsidiaries determined on a
Consolidated basis in accordance with GAAP at such time.  For purposes of this Section 8.17 the
book value of any Ancillary Asset not owned 100%, directly or indirectly, by
the Borrower or any of its Subsidiaries shall be adjusted by multiplying the
same by the Borrower’s Interest in such Ancillary Asset during the fiscal
quarter of the Borrower ending as of any date of determination of such book
value.

 

8.18                           Development Activity.  Engage, directly or indirectly, or permit
any Subsidiary or Joint Venture to engage, in the ground-up development of Real
Property except for the ground-up development of New Construction Assets to be
used principally as a retail shopping center, provided that the book value of
New Construction Assets by Borrower and its Subsidiaries and Joint Ventures
shall not at any time exceed fifteen percent (15%) of the Borrower’s Adjusted
Consolidated Total Assets.  For purposes
of this Section 8.18 the book value of any New Construction Assets not
owned 100%, directly or indirectly, by the Borrower or any of its Subsidiaries
shall be adjusted by multiplying the same by the Borrower’s Interest in such
New

 

69

 

Construction Asset during the fiscal quarter of the Borrower ending as
of any date of determination of such book value.

 

8.19                           Debt Service Coverage.  Permit the aggregate Subject Property
Adjusted Net Operating Income for the prior twelve (12) months to be less than
1.4 times the Implied Debt Service of the Borrower and the Subject Property
Owners for such period.

 

8.20                           Restricted Interests Ratio.  Permit at any time the outstanding principal
balance of the Loans to exceed 66 2/3% of the difference between the portion of
Subject Property Adjusted Consolidated Total Assets attributable to Collateral
Interests Properties and the aggregate Subject Property Indebtedness
attributable to Collateral Interests Properties.

 

9.                                       DEFAULT.

 

9.1                                 Events of Default.  The following shall each constitute an “Event of Default”
hereunder:

 

(a)                                  The
failure of the Borrower to pay any installment of principal on any Note on the
date when due and payable; or

 

(b)                                 The
failure of the Borrower to pay any installment of interest or any other fees,
expenses or other charges payable under any Loan Document within five Business
Days of the date when due and payable; or

 

(c)                                  The
use of the proceeds of any Loan in a manner inconsistent with or in violation
of Section 2.15; or

 

(d)                                 The
failure of the Borrower to observe or perform any covenant or agreement
contained in Section 7.12(a), 7.12(b), or 8 (other than Sections 8.1, 8.3,
8.5, 8.7, 8.8 and 8.10 as to which the provisions of paragraph (e) below shall
apply); or

 

(e)                                  The
failure of Borrower or any of its Subsidiaries to observe or perform any other
term, covenant, or agreement contained in any Loan Document and such failure
shall have continued unremedied for a period of 30 days after notice thereof
from the Administrative Agent to the Borrower, provided that if Borrower shall
have exercised reasonable diligence to cure such failure and such failure
cannot be cured within such 30 day period despite such reasonable diligence,
Borrower shall have the right to cure such failure within 90 days after the
date of such notice from Administrative Agent provided Borrower diligently and
continuously pursues the completion of such cure (unless any such default is
excluded from any provision of a grace period or cure of defaults contained in
any other Loan Document or unless a shorter cure period is specified in any
other Loan Document with respect to such default); or

 

(f)                                    Any
representation or warranty of the Borrower or any of its Subsidiaries (or of
any officer of the Borrower or any of its Subsidiaries on their behalf) made in
any Loan Document to which it is a party or in any certificate, report, opinion
(other than an opinion of counsel) or other document delivered or to be
delivered pursuant thereto, shall prove to have been incorrect or misleading
(whether because of misstatement or omission) in any material respect when
made; or

 

70

 

(g)                                 Any
obligation of the Borrower (other than its obligations under the Notes) or any
Subsidiary of the Borrower, whether as principal, guarantor, surety or other
obligor, for the payment of any Indebtedness shall (i) become or shall be
declared to be due and payable prior to the expressed maturity thereof, or (ii)
shall not be paid when due or within any grace period for the payment thereof,
or (iii) shall be subject, by the holder of the obligation evidencing such
Indebtedness, to acceleration (after the expiration of any applicable notice
and cure periods) prior to the expressed maturity thereof, and the sum of all
such Indebtedness which is the subject of paragraphs (i) - (iii) inclusive
exceeds (A) at any time, in the case of Indebtedness other than Non-Recourse
Indebtedness, $15,000,000, and (B) in any calendar year, in the case of
Non-Recourse Indebtedness, $50,000,000 in the aggregate during such year;  or

 

(h)                                 The
Borrower or any Subsidiary of the Borrower shall (i) suspend or discontinue its
business (except as permitted by Section 7.3 or 8.2), (ii) make an assignment
for the benefit of creditors, (iii) generally not be paying its debts as such
debts become due, (iv) admit in writing its inability to pay its debts as they
become due, (v) file a voluntary petition in bankruptcy, (vi) become insolvent
(however such insolvency shall be evidenced), (vii) file any petition or answer
seeking for itself any reorganization, arrangement, composition, readjustment
of debt, liquidation or dissolution or similar relief under any present or
future statute, law or regulation of any jurisdiction, (viii) petition or apply
to any tribunal for any receiver, custodian or any trustee for any substantial
part of its Property, (ix) be the subject of any such proceeding filed against
it which remains undismissed for a period of 60 days, (x) file any answer
admitting or not contesting the material allegations of any such petition filed
against it or any order, judgment or decree approving such petition in any such
proceeding, (xi) seek, approve, consent to, or acquiesce in any such proceeding,
or in the appointment of any trustee, receiver, custodian, liquidator, or
fiscal agent for it, or any substantial part of its Property, or an order is
entered appointing any such trustee, receiver, custodian, liquidator or fiscal
agent and such order remains in effect for 60 days, or (xii) take any formal
action for the purpose of effecting any of the foregoing; provided that the
events described in this Section 9.1(h) as to any Subsidiary of the
Borrower that is not a Subsidiary Guarantor, shall not constitute an Event of
Default unless the aggregate book value of Borrower’s direct or indirect equity
Investment in all such Subsidiaries exceeds $50,000,000; or

 

(i)                                     An
order for relief is entered under the United States bankruptcy laws or any
other decree or order is entered by a court having jurisdiction (i) adjudging
the Borrower or any Subsidiary bankrupt or insolvent, (ii) approving as
properly filed a petition seeking reorganization, liquidation, arrangement,
adjustment or composition of or in respect of the Borrower or any Subsidiary
under the United States bankruptcy laws or any other applicable Federal or
state law, (iii) appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator (or other similar official) of the Borrower or any Subsidiary
or of any substantial part of the Property thereof, or (iv) ordering the
winding up or liquidation of the affairs of the Borrower or any Subsidiary, and
any such decree or order continues unstayed and in effect for a period of 60
days; provided that the events described in this Section 9.1(i) as to any
Subsidiary of the Borrower that is not a Subsidiary Guarantor, shall not
constitute an Event of Default unless the aggregate book value of Borrower’s
direct or indirect equity Investment in all such Subsidiaries exceeds
$50,000,000; or

 

(j)                                     Judgments
or decrees against the Borrower, any Subsidiary of the Borrower, the Collateral
or any of the Subject Properties not covered by insurance aggregating in excess
of

 

71

 

$15,000,000 shall not be paid, stayed on appeal, discharged, bonded or
dismissed for a period of 45 days; or

 

(k)                                  Any
Loan Document shall cease, for any reason, to be in full force and effect, or
the Borrower or any Assignor shall so assert in writing or shall disavow any of
its obligations thereunder; or

 

(l)                                     An
event or condition specified in Section 7.2(d) shall occur or exist with
respect to any Plan or Multiemployer Plan and, as a result of such event or
condition, together with all other such events or conditions, the Borrower
shall be reasonably likely to incur a liability to a Plan, a Multiemployer
Plan, the PBGC, or any combination thereof, equal to or in excess of
$15,000,000 individually or in the aggregate; or

 

(m)                               There
shall occur a Change of Control; or

 

(n)                                 If
any Loan Document (i) is determined by any court or Governmental Authority to
be illegal, invalid or unenforceable in accordance with its terms, or (ii)
shall be canceled, terminated, revoked or rescinded other than in accordance
with its terms or with the written consent or approval of the Lenders; or

 

(o)                                 (i) Any
Subsidiary Guarantor shall fail to comply in any material respect with any
covenant made by it in the Guaranty or if at any time any representation or
warranty made by any Subsidiary Guarantor in the Guaranty or in any other
document, statement or writing made to the Administrative Agent, the Lead
Arranger or the Lenders shall prove to have been incorrect or misleading in any
material respect when made, or (ii) if a default by any Subsidiary Guarantor
shall occur under the Guaranty after the expiration of any applicable notice
and grace period; or (iii) if any Subsidiary Guarantor shall revoke or attempt
to revoke, contest, commence any action or raise any defense (other than the
defense of payment) against its obligations under the Guaranty; or

 

(p)                                 There
shall occur a default or event of default under any of the other Loan Documents
which shall continue to exist beyond any applicable grace or notice or cure
period provided in such other Loan Documents; or

 

(q)                                 There
shall occur and be continuing an Event of Default under and as defined in the
Existing Credit Agreement.

 

Upon the occurrence of an Event of Default or
at any time thereafter during the continuance thereof, (a) if such event is an
Event of Default specified in clause (h) or (i) above, the Loans, all accrued
and unpaid interest thereon, and all other amounts owing under the Loan
Documents shall immediately become due and payable, and the Administrative Agent
may, and upon the direction of the Required Lenders shall, exercise any and all
remedies and other rights provided in the Loan Documents, and (b) if such event
is any other Event of Default with the consent of the Required Lenders, the
Administrative Agent may, and upon the direction of the Required Lenders shall,
by notice of default to the Borrower, declare the Loans, all accrued and unpaid
interest thereon and all other amounts owing under the Loan Documents to be due
and payable forthwith, whereupon the same shall immediately become due and
payable, and the Administrative Agent may, and upon the direction of the
Required Lenders shall, exercise any and all remedies and other rights provided
pursuant to the Loan Documents.  Except
as otherwise provided in this Section, presentment,

 

72

 

demand, protest and all other notices of any kind are hereby expressly
waived.  The Borrower hereby further
expressly waives and covenants not to assert any appraisement, valuation, stay,
extension, redemption or similar laws, now or at any time hereafter in force
which might delay, prevent or otherwise impede the performance or enforcement
of any Loan Document.

 

In the event that the Notes shall have been
declared due and payable pursuant to the provisions of this Section, any funds
received by the Administrative Agent and the Lenders from or on behalf of the
Borrower, or otherwise with respect to the realization upon the Collateral,
shall be applied by the Administrative Agent and the Lenders in liquidation of
the Loans and the obligations of the Borrower under the Loan Documents in the
following manner and order:  (i) first,
to the payment of interest on and then the principal portion of any Loans which
the Administrative Agent may have advanced on behalf of any Lender (including,
without limitation, any protective advances or other advances in respect of the
Collateral) for which the Administrative Agent has not then been reimbursed by
such Lender or the Borrower; (ii) second, to reimburse the Administrative Agent
and the Lenders for any expenses due from the Borrower pursuant to the
provisions of Section 11.5; (iii) third, to the payment of all other
fees, expenses and amounts due under the Loan Documents (other than principal
and interest on the Notes); provided, however, that distributions in respect of
such fees and expenses due to the Administrative Agent from the Borrower shall
be made pari passu with respect to the payment of any other fees, expenses or
amounts due the Lenders from the Borrower; (iv) fourth, to the payment of
interest due on the Notes; (v) fifth, to the payment of principal outstanding
on the Notes; and (vi) sixth, to the payment of any other amounts owing to the
Administrative Agent, the Lead Arranger and the Lenders under any Loan Document
or other document or agreement entered into in connection with the transactions
contemplated thereby.

 

9.2                                 Default under Subject Property
Loan Documents.  The
Borrower hereby expressly agrees that upon the occurrence and during the
continuation of an Event of Default, the Administrative Agent shall have the
right, but not the obligation, to pay any sums or to take any action, to the
extent that the applicable Subject Property Owner is permitted to take such
action under the terms of the Collateral Property Loan Documents, which the
Administrative Agent deems necessary or advisable to cure any “Default” (as
defined in the applicable Subject Property Loan Documents, or if not defined
therein, the word or phrase used therein having similar meaning) or alleged
“Default” under the Subject Property Loan Documents (whether or not the Subject
Property Owners are undertaking efforts to cure such “Default” or the same is
an “Event of Default” (as defined in the applicable Subject Property Loan
Documents, or if not defined therein, the word or phrase used therein having
similar meaning) under the Subject Property Loan Documents or a Default or
Event of Default hereunder), and such payment or such action is hereby
authorized by the Borrower, and any sum so paid and any expense incurred by the
Administrative Agent in taking any such action shall be evidenced by this
Agreement and secured by the Security Documents and shall be immediately due
and payable by Borrower to the Administrative Agent with interest at the rate
for overdue amounts set forth in Section 2.9(b) until paid.  The Administrative Agent shall be authorized
to take such actions upon the assertion by any holder of any of the Subject
Property Loan Documents of the existence of such “Default” or “Event of
Default” without any duty to inquire or determine whether such “Default” or
“Event of Default” exist.  The Borrower
shall cause the Subject Property Owners to permit the Administrative Agent to
enter upon the Subject Properties for the purpose of curing any “Default” or
alleged “Default” under the Subject Property Loan Documents or hereunder.  The Borrower hereby transfers and assigns
any excess proceeds arising from any foreclosure or sale under power pursuant
to the Subject Property Loan Documents, and

 

73

 

the Borrower hereby authorizes and directs the holder or holders of the
Subject Property Loan Documents to pay such excess proceeds directly to the
Administrative Agent up to the amount of the obligations owed to the
Administrative Agent and the Lenders under the Loan Documents.

 

10.                                 THE
AGENT.

 

10.1                           Appointment and Authority.

 

Each of the Lenders hereby irrevocably
appoints Bank of America to act on its behalf as the Administrative Agent
hereunder and under the other Loan Documents and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof or thereof, together
with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are
solely for the benefit of the Administrative Agent and the Lenders, and neither
the Borrower nor any Subsidiary Guarantor shall have rights as a third party beneficiary
of any of such provisions.

 

10.2                           Rights as a Lender.  The Person serving as the Administrative
Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual
capacity.  Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

 

10.3                           Exculpatory Provisions.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the
generality of the foregoing, the Administrative Agent:

 

(a)                                  shall
not be subject to any fiduciary or other implied duties, regardless of whether
a Default has occurred and is continuing;

 

(b)                                 shall
not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Administrative
Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly
provided for herein or in the other Loan Documents), provided that the
Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and

 

(c)                                  shall
not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Affiliates that is
communicated to or obtained by the Person serving as the Administrative Agent
or any of its Affiliates in any capacity.

 

74

 

The Administrative Agent shall not be liable
for any action taken or not taken by it (i) with the consent or at the request
of the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary, or as the Administrative Agent shall believe in good faith
shall be necessary, under the circumstances as provided in Sections 11.1
and 9.1) or (ii) in the absence of its own gross negligence or willful
misconduct.

 

The Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Default, (iv) the validity, enforceability, effectiveness
or genuineness of this Agreement, any other Loan Document or any other
agreement, instrument or document or (v) the satisfaction of any condition set
forth in Article V or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative
Agent.

 

10.4                           Reliance by Administrative Agent.

 

The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying in good faith upon,
any notice, request, certificate, consent, statement, instrument, document or
other writing (including any electronic message, Internet or intranet website
posting or other distribution) believed by it to be genuine and to have been
signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying
thereon.  In determining compliance with
any condition hereunder to the making of a Loan, that by its terms must be
fulfilled to the satisfaction of a Lender, the Administrative Agent may presume
that such condition is satisfactory to such Lender unless the Administrative
Agent shall have received notice to the contrary from such Lender prior to the
making of such Loan.  The Administrative
Agent may consult with legal counsel, independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

 

10.5                           Notice of Default.  The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default, except with
respect to defaults in the payment of principal, interest and fees required to
be paid to the Administrative Agent for the account of the Lenders, unless the
Administrative Agent has received written notice thereof from a Lender or the
Borrower.  In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall
promptly give notice thereof to the Lenders. 
The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required
Lenders, provided, however, 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 to be in the best
interests of the Lenders.

 

10.6                           Delegation of Duties.  The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Documents by or

 

75

 

through its Related Parties. 
The exculpatory provisions of this Article shall apply to any such
Related Parties of the Administrative Agent and shall apply to any such Related
Parties’ activities in connection with the syndication of the loans provided
for herein as well as activities as Administrative Agent.

 

10.7                           Indemnification.  Each Lender agrees to indemnify and reimburse the Administrative
Agent in its capacity as such (to the extent not promptly reimbursed by the Borrower
and without limiting the obligation of the Borrower to do so), pro rata
according to its Commitment, from and against any and all liabilities,
obligations, claims, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever including, without
limitation, any amounts paid to the Lenders (through the Administrative Agent)
by the Borrower, any Subsidiary Guarantor pursuant to the terms of the Loan
Documents, that are subsequently rescinded or avoided, or must otherwise be
restored or returned) which may at any time (including, without limitation, at
any time following the payment of the Notes) be imposed on, incurred by or
asserted against the Administrative Agent in any way relating to or arising out
of the Loan Documents or any other documents contemplated by or referred to
therein or the transactions contemplated thereby or any action taken or omitted
to be taken by the Administrative Agent under or in connection with any of the
foregoing; provided, however, that no Lender shall be liable for the payment of
any portion of such liabilities, obligations, claims, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements to the
extent resulting solely from the gross negligence or willful misconduct of the
Administrative Agent.  The agreements in
this Section shall survive the payment of all amounts payable under the
Loan Documents.

 

10.8                           Successor Administrative Agent.  The Administrative Agent may at any time
give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with
the Borrower, to appoint a successor, which shall be a bank with an office in
the United States, or an Affiliate of any such bank with an office in the
United States.  If no such successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment in writing within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
shall, in consultation with the Borrower, appoint a successor Administrative
Agent on behalf of the Lenders prior to the end of the 60th day from such
notice from among any of the Lenders who shall have at such time agreed to act
as the successor Administrative Agent and shall have at such time a Commitment
of at least $10,000,000 (an “Approved Successor”).  If no Lender has a Commitment of at least
$10,000,000 (or no Lender whose Commitment is at least $10,000,000 shall agree
to accept such appointment), then the retiring Administrative Agent shall, in
consultation with the Borrower (unless an Event of Default has occurred and is
continuing), appoint any other Lender or any other commercial bank organized
under the laws of the United States of America or any State thereof and having
a combined capital and surplus of at least $100,000,000 as a successor
Administrative Agent.  Any appointment
of a successor Administrative Agent shall be subject to the approval of the
Borrower, which approval shall not be unreasonably withheld or delayed, and
shall be given in any event prior to the end of the 60th day from the date of
the retiring Administrative Agent’s notice of removal or resignation, provided
that during any period in which there exists and is continuing an Event of
Default, no consultation with, or approval from, the Borrower with respect to
the appointment of an Approved Successor shall be required.  Upon the acceptance of an appointment as
Administrative Agent hereunder by a successor Administrative Agent and any
required approval of such successor Administrative Agent by the Borrower in
accordance with the

 

76

 

terms of this Section, such successor Administrative Agent shall
thereupon succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and
the retiring Administrative Agent shall be discharged from all of its duties
and obligations hereunder or under the other Loan Documents (if not already
discharged therefrom as provided above in this Section).  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor.  The Supermajority Lenders may remove the
Administrative Agent from its capacity as administrative agent in the event of
the Administrative Agent’s willful misconduct or gross negligence.  Such removal shall be effective upon
appointment and acceptance of a successor Administrative Agent selected by the
Supermajority Lenders.  Any successor
Administrative Agent must satisfy the conditions set forth in this
Section 10.8 (including, without limitation, the consultation with, and
approval from, the Borrower, to the extent required under
Section 10.8).  Upon the acceptance
of any appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all rights, powers, privileges and duties of the removed
Administrative Agent, and the removed Administrative Agent shall be discharged
from all further duties and obligations as Administrative Agent under this
Agreement and the Loan Documents, provided that the Administrative Agent shall
remain liable to the extent provided in the Loan Documents for its acts and
omissions occurring prior to such removal. 
The Commitment of the Lender which is acting as Administrative Agent
shall not be taken into account in the calculation of Supermajority Lenders for
the purposes of removing Administrative Agent in the event of the
Administrative Agent’s willful misconduct or gross negligence.  After the retiring or removed Administrative
Agent’s resignation or removal hereunder and under the other Loan Documents,
the provisions of this Article and Sections 11.5 and 11.12 shall
continue in effect for the benefit of such retiring or removed Administrative
Agent, its sub agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while the retiring or
removed Administrative Agent was acting as Administrative Agent.

 

10.9                           Non-Reliance on Administrative
Agent and Other Lenders. 
Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender or any of their Related
Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related
agreement or any document furnished hereunder or thereunder.

 

10.10                     No Other Duties, Etc.  Anything herein to the contrary
notwithstanding, none of the Book Manager, Lead Arrangers, Syndication Agent,
Documentation Agent or Managing Agents listed on the cover page hereof shall
have any powers, duties or responsibilities under this Agreement or any of the
other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent or a Lender hereunder.

 

10.11                     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 the Borrower or any Subsidiary Guarantor, the

 

77

 

Administrative Agent (irrespective of whether the principal of any Loan
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 Borrower) 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 and all other obligations of the Borrower
and the Subsidiary Guarantors under the Loan Documents 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 Sections  3.1, 11.5 and 11.12) 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 Sections 3.1,
11.5 and 11.12.

 

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 of the Borrower and the
Subsidiary Guarantors under the Loan Documents 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.

 

10.12                     Collateral and Guaranty Matters.  The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion,

 

(a)                                  to
release any Lien on any property granted to or held by the Administrative Agent
under any Loan Document (i) upon termination of the Total Commitment Amount and
payment in full of all obligations of the Borrower and the Subsidiary Guarantors
under the Loan Documents (other than contingent indemnification obligations),
(ii) that is sold or to be sold as part of or in connection with any sale
permitted hereunder or under any other Loan Document, (iii) if the Loan
Documents otherwise permit such release, or (iv) subject to Section 11.1,
if approved, authorized or ratified in writing by the Required Lenders; and

 

(b)                                 to
release any Subsidiary Guarantor from its obligations under the Guaranty if (i)
such Person ceases to be a Subsidiary as a result of a transaction permitted
hereunder, or (ii) such release is permitted pursuant to and in accordance with
Section 8.2.

 

Upon request by the Administrative Agent at
any time, the Required Lenders will confirm in writing the Administrative
Agent’s authority to release its interest in particular types or items of

 

78

 

property, or to release any Subsidiary Guarantor from its obligations
under the Guaranty pursuant to this Section 10.12.

 

11.                                 OTHER PROVISIONS.

 

11.1                           Amendments and Waivers.  With the written consent of the Required
Lenders, the Administrative Agent and the Borrower may, from time to time,
enter into written amendments, supplements or modifications of the Loan
Documents and, with the consent of the Required Lenders, the Administrative
Agent on behalf of the Lenders may execute and deliver to any such parties a
written instrument waiving or a consent to a departure from, on such terms and
conditions as the Administrative Agent may specify in such instrument, any of
the requirements of the Loan Documents or any Default or Event of Default and
its consequences; provided, however, that no such amendment, supplement,
modification, waiver or consent shall, without the consent of all of the Lenders:  (i) increase the Commitment of any
Lender or the Total Commitment Amount; (ii) extend the Maturity Date; (iii)
decrease the rate, or extend the time of payment, of interest of, or change or
forgive the principal amount of, or change the requirement that payments and
prepayments of principal on, and payments of interest on, the Notes be made pro
rata to the Lenders on the basis of the outstanding principal amount of the
Loans, (iv) amend the definitions of “Required Lender” or “Supermajority
Lenders”, (v) amend any provision of this Agreement or the Loan Documents which
requires the approval of all of the Lenders, the Supermajority Lenders or the
Required Lenders to require a lesser number of Lenders to approve such action,
(vi) release any Subsidiary Guarantor or Assignor from its obligations under a
Guaranty or the Assignment of Interests except as provided in Section 8.2,
(vii) release any of the Collateral except as provided in Section 6.2, 6.3
or 8.2, or (viii) change the provisions of Section 3.1 or 11.1; and
provided further that no such amendment, supplement, modification, waiver or
consent shall amend, modify, waive or consent to a departure from any provision
of Section 10 or otherwise change any of the rights or obligations of the
Administrative Agent under the Loan Documents without the written consent of
the Administrative Agent.  The
Administrative Agent shall cause a copy of each written request for such an
amendment, supplement or modification delivered by the Borrower to it to be
delivered to each Lender.  Any such
amendment, supplement, modification, waiver or consent shall apply equally to
each of the Lenders and shall be binding upon the parties to the applicable
agreement, the Lenders, the Administrative Agent and all future holders of the
Notes.  In the case of any waiver, the
parties to the applicable agreement, the Lenders and the Administrative Agent
shall be restored to their former position and rights under the Loan Documents,
and any Default or Event of Default waived shall not extend to any subsequent
or other Default or Event of Default, or impair any right consequent
thereon.  Notwithstanding anything
contained herein to the contrary, no Defaulting Lender shall have the right to
approve or disapprove any amendment, waiver or consent hereunder, except that
the Commitment of such Lender may not be increased or extended without the
consent of such Lender.

 

11.2                           Notices.  All
notices, requests and demands to or upon the respective parties hereto to be
effective shall be in writing and, unless otherwise expressly provided herein,
shall be deemed to have been duly given or made when delivered by hand, or if
sent by certified mail (return receipt requested), when the return receipt is
signed on behalf of the party to whom such notice is given, or in the case of
telecopier notice, when sent with a confirmation received, or if sent by
overnight nationwide commercial courier, the Business Day following the date
such notice is deposited with said courier, and in any case addressed as
follows in the case of the Borrower or the Administrative

 

79

 

Agent, and at the Domestic Lending Office in the case of each Lender,
or to such other addresses as to which the Administrative Agent may be
hereafter notified by the respective parties hereto or any future holders of
the Notes:

 

	
   

  	
  The Borrower:

  
	
   

  	
   

  
	
   

  	
  New Plan Excel Realty Trust, Inc.

  
	
   

  	
  1120 Avenue of the Americas; 12th
  Floor

  
	
   

  	
  New York, New York 10036

  
	
   

  	
  Attention:

  	
   

  	
  John B. Roche,

  
	
   

  	
  Chief Financial Officer

  
	
   

  	
  Telephone:

  	
   

  	
  (212) 869-3000

  
	
   

  	
  Telecopy:

  	
   

  	
  (212) 869-3989

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  New Plan Excel Realty Trust, Inc.

  
	
   

  	
  1120 Avenue of the Americas

  
	
   

  	
  New York, New York 10036

  
	
   

  	
  Attention:

  	
   

  	
  Steven F. Siegel, Esq., General Counsel

  
	
   

  	
  Telephone:

  	
   

  	
  (212) 869-3000

  
	
   

  	
  Telecopy:

  	
   

  	
  (212) 869-7460

  
	
   

  	
   

  
	
   

  	
  The Administrative Agent:

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
  Agency Management

  
	
   

  	
  TX1-492-14-11

  
	
   

  	
  901 Main Street, 14th Floor

  
	
   

  	
  Dallas, TX 
  75202

  
	
   

  	
  Attention:

  	
   

  	
  Kajal Patel

  
	
   

  	
  Telephone:

  	
   

  	
  (214) 209-4109

  
	
   

  	
  Telecopy:

  	
   

  	
  (214) 290-9448

  
	
   

  	
  (the above address being the initial
  Administrative Agent’s Office)

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
  Credit Services

  
	
   

  	
  TX1-492-14-05

  
	
   

  	
  901 Main Street

  
	
   

  	
  14th Floor

  
	
   

  	
  Dallas, Texas  75202

  
	
   

  	
  Attention:

  	
   

  	
  Nora J. Taylor

  
	
   

  	
  Telephone:

  	
   

  	
  (214) 209-0592

  
	
   

  	
  Telecopy:

  	
   

  	
  (214) 290-9673

  

 

80

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
  231 South LaSalle Street, 10th
  Floor

  
	
   

  	
  Chicago, Illinois 60697

  
	
   

  	
  Attention:

  	
   

  	
  Mark A. Mokelke

  
	
   

  	
  Telephone:

  	
   

  	
  (312) 828-1739

  
	
   

  	
  Telecopy:

  	
   

  	
  (312) 974-4970

  

 

except that any notice, request or demand by
the Borrower to or upon the Administrative Agent or the Lenders pursuant to
Section 2.8 shall not be effective until received.  Any party to a Loan Document may rely on
signatures of the parties thereto which are transmitted by telecopier or other
electronic means as fully as if originally signed.

 

11.3                           No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising any right, remedy, power or privilege under any Loan Document shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege under any Loan Document preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
under the Loan Documents are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

 

11.4                           Survival of Representations and
Warranties.  All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have
been or will be relied upon by the Administrative Agent and each Lender,
regardless of any investigation made by the Administrative Agent or any Lender
or on their behalf and notwithstanding that the Administrative Agent or any
Lender may have had notice or knowledge of any Default at the time of the
making of any Loan, and shall continue in full force and effect as long as any
Loan or any other obligation of the Borrower, any Subsidiary Guarantor or any
of their respective Subsidiaries or Affiliates hereunder shall remain unpaid or
unsatisfied.

 

11.5                           Payment of Expenses and Taxes.  The Borrower agrees, promptly upon
presentation of a statement or invoice therefor, and whether any Loan is made
(i) to pay or reimburse Bank of America, Administrative Agent and Lead Arranger
for all of their reasonable out-of-pocket costs and expenses reasonably
incurred in connection with the development, preparation, negotiation and
execution of, the Loan Documents, the syndication of the loan transaction
evidenced by this Agreement (whether or not such syndication is completed) and
any amendment, supplement or modification hereto (whether or not executed), any
documents prepared in connection therewith and the consummation of the
transactions contemplated thereby, including, without limitation, the
reasonable fees and disbursements of Special Counsel, (ii) to pay or reimburse
each Credit Party for all of its respective reasonable costs and expenses,
including, without limitation, reasonable fees and disbursements of counsel,
reasonably incurred in connection with (x) any Default or Event of Default and
any enforcement or collection proceedings resulting therefrom (including,
without limitation, any reasonable costs incurred after the entry of judgment
in an attempt to collect money due in the judgment) or in connection with the
negotiation of any restructuring or “work-out” (whether consummated or not) of
the obligations of the Borrower under any of the Loan

 

81

 

Documents, (y) any UCC searches, UCC filings, title rundowns,
title searches and document recordings and (z) the enforcement of this Section,
(iii) to pay, indemnify, and hold each Credit Party harmless from and against,
any and all recording and filing fees and any and all liabilities with respect
to, or resulting from any delay in paying, stamp, excise and other similar
taxes, if any, which may be payable or determined to be payable in connection
with the execution, recording, filing, and delivery of, or consummation of any
of the transactions contemplated by, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, the Loan
Documents and any such other documents, and (iv) to pay, indemnify and hold
each Credit Party and each of their respective officers, directors, employees,
affiliates, agents, controlling persons and attorneys (as used in this Section,
each an “indemnified person”) harmless from and against any and all
other liabilities, obligations, claims, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever (including, without limitation, reasonable counsel fees and
disbursements) with respect to any claim, investigation or proceeding from any
third party relating to this Agreement, the Loan Documents, the Collateral,
Hazardous Substances or the Subject Properties, including the enforcement and
performance of the Loan Documents and the use of the proceeds of the Loans (all
the foregoing, collectively, the “indemnified liabilities”), whether or
not any such indemnified person is a party to this Agreement or the Loan
Documents, and to reimburse each indemnified person for all reasonable legal
and other expenses incurred in connection with investigating or defending any
indemnified liabilities, and, if and to the extent that the foregoing indemnity
may be unenforceable for any reason, the Borrower agrees to make the maximum
payment permitted or not prohibited under applicable law; provided, however,
that the Borrower shall have no obligation hereunder to pay indemnified
liabilities to any Credit Party arising from (A) the gross negligence or
willful misconduct of such Credit Party or (B) disputes solely between the
Credit Parties and which are not related to any act or failure to act on the
part of the Borrower or the failure of the Borrower to perform any of its
obligations under this Agreement or the Loan Documents.

 

Notwithstanding the foregoing, the fees and
expenses referred to in clause (iv) of the preceding paragraph shall not be
payable by the Borrower if (x) any such enforcement action brought by such
Credit Party is dismissed, with prejudice, on the pleadings or pursuant to a
motion made by the Borrower for summary judgment, and (y) if such Credit Party
appeals such dismissal, such dismissal is affirmed and the time for any further
appeals has expired.  The obligations of
the Borrower under this Section shall survive the termination of this
Agreement and the Commitments and the payment of the Notes and all other amounts
payable under the Loan Documents.

 

11.6                           Lending Offices.  Each Lender shall have the right at any time and from time to
time to transfer its Loans to a different office, provided that such Lender
shall promptly notify the Administrative Agent and the Borrower of any such
change of office.  Such office shall
thereupon become such Lender’s Domestic Lending Office or LIBOR Lending Office,
as the case may be; provided, however, that no such Lender shall be entitled to
receive any greater amount under Section 2.13, 2.14 or 2.16 as a result of
a transfer of any such Loans to a different office of such Lender than it would
be entitled to immediately prior thereto unless such claim would have arisen
even if such transfer had not occurred.

 

82

 

11.7                           Successors and Assigns.

 

(a)                                  Successors
and Assigns Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby,
except that neither the Borrower nor any Subsidiary Guarantor may assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of the Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an Eligible Assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section, or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent
provided in subsection (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent,
and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

 

(b)                                 Assignments
by Lenders.  Any Lender may at any
time assign to one or more Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it); provided that

 

(i)                                     except
in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the Commitment is not
then in effect, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, and after giving effect to such assignment,
shall not be less than $5,000,000 unless each of the Administrative Agent and,
so long as no Event of Default has occurred and is continuing, the Borrower
otherwise consents (each such consent not to be unreasonably withheld or
delayed);

 

(ii)                                  unless
otherwise approved by the Administrative Agent, such assignee shall acquire an
interest in the Loans of not less than $5,000,000 or such amount plus a whole
multiple of $1,000,000 in excess thereof, unless such assignee is acquiring all
of the assigning Lender’s Commitment;

 

(iii)                               each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loans or the Commitment assigned;

 

(iv)                              any
assignment of a Commitment must be approved by the Administrative Agent unless
the Person that is the proposed assignee is itself a Lender (whether or not the
proposed assignee would otherwise qualify as an Eligible Assignee), provided,
however, that the Administrative Agent’s approval shall not be required
following and during the continuation of an Event of Default so long as such
assignee is a financial institution having a net worth of not less than
$300,000,000.00 as of the date of such assignment; and

 

83

 

(v)                                 the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

 

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment
and Assumption, the Eligible Assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Sections 2.11, 2.13, 2.14, 11.5 and 11.12 with respect to facts and
circumstances occurring prior to the effective date of such assignment.  Upon request, the Borrower (at its expense)
shall execute and deliver a Note (i) to the assignee Lender and (ii) to the
assignor Lender if such assignment is less than such assignor Lender’s entire
commitment.  Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply
with this subsection shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in
accordance with subsection (d) of this Section.

 

(c)                                  Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, in the absence of manifest error, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower at any reasonable time and from time to time upon
reasonable prior notice.  In addition,
at any time that a request for a consent for a material or substantive change
to the Loan Documents is pending, any Lender wishing to consult with other
Lenders in connection therewith may request and receive from the Administrative
Agent a copy of the Register.

 

(d)                                 Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower, any
Subsidiary Guarantor or any of the Borrower’s or any Subsidiary Guarantor’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion
of such Lender’s rights and/or obligations under this Agreement (including all
or a portion of its Commitment and/or the Loans owing to it); provided
that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations and (iii) the Borrower, the
Administrative Agent, the Lenders shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under
this Agreement.

 

84

 

Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment, modification
or waiver of any  provision of this
Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any
amendment, waiver or other modification described in the first proviso to Section 11.1
that affects such Participant.  Subject
to subsection (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.11, 2.13
and 2.14 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 11.10
as though it were a Lender, provided such Participant agrees to be
subject to Sections 2.3(d) and (f) as though it were a Lender.

 

(e)                                  Limitations
upon Participant Rights.  A
Participant shall not be entitled to receive any greater payment under Section 2.11
or 2.13 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written
consent.  A Participant that would be a
foreign corporation (as referred to in Section 2.11(b)) if it were
a Lender shall not be entitled to the benefits of Section 2.11
unless the Borrower is notified of the participation sold to such Participant
and such Participant, for the benefit of the Borrower, complies with Section 2.11(b)
as though it were a Lender.

 

(f)                                    Certain
Pledges.  Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under
this Agreement (including under its Note) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

 

(g)                                 Electronic
Execution of Assignments.  The words
“execution,” “signed,” “signature,” and words of like import in any Assignment
and Assumption shall be deemed to include electronic signatures or the keeping
of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

 

(h)                                 Resignation
by Administrative Agent.  In the
event that any Lender acting as Administrative Agent or any successor Lender
acting as Administrative Agent shall at any time hold a Commitment of less than
$10,000,000.00, then such Administrative Agent shall promptly provide written
notice thereof to the Lenders and the Required Lenders shall have the right, to
be exercised within fifteen (15) days of delivery of such notice by such
Administrative Agent, to elect to remove such Administrative Agent as
Administrative Agent and replace such Administrative Agent under the Loan
Documents, subject to the terms of Section 10.8 of this Agreement
(including, without limitation, the consultation with, and approval from, the
Borrower, to the extent required under Section 10.8).

 

85

 

(i)                                     Resignation
by other Agents.  In the event that
a Lender that is also a Lead Arranger or Book Manager assigns all of its
Commitment, contemporaneously with the effectiveness of such assignment, such
Lender shall no longer serve in such capacity as Lead Arranger, Syndication
Agent, Managing Agent or Book Manager, as applicable.

 

11.8                           [Intentionally Omitted].

 

11.9                           Counterparts; Integration;
Effectiveness.

 

This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract.  This Agreement and the other
Loan Documents constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof.  Except as provided in Article V, this
Agreement shall become effective when it shall have been executed by the Administrative
Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties
hereto.  Delivery of an executed
counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this
Agreement.  A telecopied counterpart of
any Loan Document or to any document evidencing, and of any an amendment,
modification, consent or waiver to or of any Loan Document shall be deemed to
be an originally executed counterpart. 
A set of the copies of the Loan Documents signed by all the parties
thereto shall be deposited with each of the Borrower and the Administrative
Agent.  Any party to a Loan Document may
rely upon the signatures of any other party thereto which are transmitted by
telecopier or other electronic means to the same extent as if originally
signed.

 

11.10                     Adjustments; Set-off.

 

(a)                                  If
any Lender (a “Benefited Lender”), shall at any time receive any payment of all
or any part of its Loans or interest thereon, or receive any collateral in
respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to
events or proceedings of the nature referred to in Section 9.1(h) or (i),
or otherwise) in a greater proportion than any such payment to and collateral
received by any other Lender in respect of such other Lender’s Loans or
interest thereon, such Benefited Lender shall purchase for cash from each of
the other Lenders such portion of each such other Lender’s Loans and shall
provide each of such other Lenders with the benefits of any such collateral, or
the proceeds thereof, as shall be necessary to cause such Benefited Lender to
share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders, provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from such Benefited Lender,
such purchase shall be rescinded, and the purchase price and benefits returned,
to the extent of such recovery, but without interest.  The Borrower agrees that each Lender so purchasing a portion of
another Lender’s Loans may exercise all rights of payment (including, without
limitation, rights of set-off, to the extent not prohibited by law) with
respect to such portion as fully as if such Lender were the direct holder of
such portion.

 

(b)                                 In
addition to any rights and remedies of the Lenders provided by law, upon the
occurrence of an Event of Default and the acceleration of the obligations owing
in connection with the Loan Documents, or at any time upon the occurrence and
during the continuance of an

 

86

 

Event of Default under Section 9.1(a) or (b), each Lender shall
have the right, without prior notice to the Borrower, any such notice being
expressly waived by the Borrower to the extent not prohibited by applicable
law, to set-off and apply against any indebtedness, whether matured or
unmatured, of the Borrower to such Lender, any amount owing from such Lender to
the Borrower, at, or at any time after, the happening of any of the
above-mentioned events.  To the extent
not prohibited by applicable law, the aforesaid right of set-off may be
exercised by such Lender against the Borrower or against any trustee in
bankruptcy, custodian, debtor in possession, assignee for the benefit of
creditors, receiver, or execution, judgment or attachment creditor of the
Borrower, or against anyone else claiming through or against the Borrower or
such trustee in bankruptcy, custodian, debtor in possession, assignee for the
benefit of creditors, receivers, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been
exercised by such Lender prior to the making, filing or issuance, or service
upon such Lender of, or of notice of, any such petition, assignment for the
benefit of creditors, appointment or application for the appointment of a
receiver, or issuance of execution, subpoena, order or warrant.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such set-off and application
made by such Lender, provided that the failure to give such notice shall not
affect the validity of such set-off and application.

 

11.11                     Lenders’ Representations.  Each Lender represents to the Administrative
Agent that, in acquiring its Note, it is acquiring the same for its own account
for the purpose of investment and not with a view to selling the same in
connection with any distribution thereof, provided that the disposition of each
Lender’s own Property shall at all times be and remain within its control.

 

11.12                     Indemnity. 
The Borrower agrees to indemnify and hold harmless each Credit Party and
its affiliates, directors, officers, employees, affiliates, agents, controlling
persons and attorneys (each an “Indemnified Person”) from and against
any loss, reasonable cost, liability, damage or reasonable expense (including
the reasonable fees and disbursements of counsel of such Indemnified Person,
including all local counsel hired by any such counsel) incurred by such
Indemnified Person in investigating, preparing for, defending against, or
providing evidence, producing documents or taking any other action in respect
of, any commenced or threatened litigation, administrative proceeding or
investigation under any federal securities or tax laws or any other statute of
any jurisdiction, or any regulation, or at common law or otherwise, which is
alleged to arise out of or is based upon: 
(i) any untrue statement of any material fact by the Borrower in any
document or schedule executed or filed with any Governmental Authority by
or on behalf of the Borrower; (ii) any omission to state any material fact
required to be stated in such document or schedule, or necessary to make the
statements made therein, in light of the circumstances under which made, not
misleading; (iii) any acts, practices or omissions of the Borrower or its
agents relating to the Collateral, the Subject Properties, the use of the
proceeds of any or all borrowings made by the Borrower which are alleged to be
in violation of Section 2.15, or in violation of any federal securities or
tax laws or of any other statute, rule, regulation, ordinance, code, permit,
license or other law of any jurisdiction applicable thereto, whether or not such
Indemnified Person is a party thereto; (iv) any and all claims for brokerage,
leasing, finders or similar fees which may be made relating to the Subject
Properties or the Loans; or (v) any condition of the Subject Properties.  The indemnity set forth herein shall be in
addition to any other obligations, liabilities or other indemnifications of the
Borrower to each Indemnified Person under the Loan

 

87

 

Documents or at common law or otherwise, and shall survive any
termination of the Loan Documents, the expiration of the Commitments and the
payment of all indebtedness of the Borrower under the Loan Documents, provided
that the Borrower shall have no obligation under this Section to an
Indemnified Person with respect to any of the foregoing to the extent found in
a final judgment of a court having jurisdiction to have resulted primarily out
of the gross negligence or willful misconduct of such Indemnified Person or
arising solely from claims between one such Indemnified Person and another such
Indemnified Person.

 

11.13                     Governing Law. 
The Loan Documents and the rights and obligations of the parties
thereunder shall be governed by, and construed and interpreted in accordance
with, the internal laws of the State of New York, without regard to principles
of conflict of laws.

 

11.14                     Headings Descriptive.  Section headings have been inserted in
the Loan Documents for convenience only and shall not be construed to be a part
thereof.

 

11.15                     Severability.

 

If any provision of this Agreement or the
other Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

 

11.16                     [Intentionally Omitted].

 

11.17                     Consent to Jurisdiction.  The Borrower and each of the Credit Parties
hereby irrevocably submit to the jurisdiction of any New York State or Federal
court sitting in the City of New York over any suit, action or proceeding
arising out of or relating to the Loan Documents.  The Borrower and each of the Credit Parties hereby irrevocably
waive, to the fullest extent permitted or not prohibited by law, any objection
which any of them may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in such a court and any claim that any
such suit, action or proceeding brought in such a court has been brought in an
inconvenient forum.  The parties intend
that Section 5-1402 of the New York General Obligations Law shall apply to
this Section 11.17.

 

11.18                     Service of Process.  The Borrower hereby agrees that process may
be served against it in any suit, action or proceeding referred to in
Section 11.17 by sending the same by first class mail, return receipt
requested or by overnight courier service, to the address of the Borrower set
forth in Section 11.2 or in the applicable Loan Document executed by the
Borrower.  The Borrower hereby agrees
that any such service (i) shall be deemed in every respect effective service of
process upon it in any such suit, action, or proceeding, and (ii) shall to the
fullest extent enforceable by law, be taken and held to be valid personal
service upon and personal delivery to it.

 

11.19                     No Limitation on Service or Suit.  Nothing in the Loan Documents or any
modification, waiver, consent or amendment thereto shall affect the right of
the Administrative Agent or any Lender to serve process in any manner permitted
by law or limit the right of the Administrative Agent or any Lender to bring
proceedings against the Borrower in the courts of any jurisdiction or jurisdictions
in which the Borrower may be served.

 

88

 

11.20                     WAIVER OF TRIAL BY JURY.  THE ADMINISTRATIVE AGENT, THE LENDERS AND
THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT
ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING
OUT OF, UNDER OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED THEREIN.  FURTHER, THE
BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE ADMINISTRATIVE
AGENT, THE LENDERS, OR COUNSEL TO THE ADMINISTRATIVE AGENT OR THE LENDERS, HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE ADMINISTRATIVE AGENT OR THE
LENDERS WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE THIS WAIVER
OF RIGHT TO JURY TRIAL PROVISION.  THE
BORROWER ACKNOWLEDGES THAT THE ADMINISTRATIVE AGENT AND THE LENDERS HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, INTER ALIA, THE PROVISIONS OF THIS
SECTION.

 

11.21                     Termination. 
After the termination of this Agreement in accordance with its terms,
without any extension thereof, and the payment in full of all obligations of
the Borrower under the Loan Documents (including without limitation, all
principal, interest, Facility Fees and other amounts payable hereunder and
under the Notes), the obligations of the Borrower hereunder (other than those
which are stated herein to survive any termination of this Agreement) shall
terminate, except that the foregoing shall not apply with respect to any claim,
action or proceeding made or brought under any other provision of the Loan
Documents prior to such termination or payment.  At the request of the Borrower, each Lender whose obligations
under the Notes have been fully paid shall promptly return to the Borrower its
Note marked “paid” or shall deliver other evidence that such Lender has
received full payment of such obligations.

 

11.22                     Replacement Notes.  Upon receipt of evidence reasonably
satisfactory to the Borrower of the loss, theft, destruction or mutilation of
any Note, and in the case of any such loss, theft or destruction, upon delivery
by the relevant Lender of an indemnity agreement reasonably satisfactory to the
Borrower or, in the case of any such mutilation, upon surrender and
cancellation of the applicable Note, the Borrower will execute and deliver, in
lieu thereof, a replacement Note, identical in form and substance to the
applicable Note and dated as of the date of the applicable Note and upon such
execution and delivery all references in the Loan Documents to such Note shall
be deemed to refer to such replacement Note.

 

11.23                     USA PATRIOT Act Notice:  Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) the “Act”), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Act.

 

11.24                     Replacement of Lenders.  If any Lender requests compensation under
Section 2.13, or if the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.11, or if any Lender is a Defaulting Lender, then
the Borrower may, at its sole expense and effort, upon notice to such Lender
and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance

 

89

 

with and subject to the requirements and restrictions contained in, and
consents required by, Section 11.7), all of its interests, rights and
obligations under this Agreement and the related Loan Documents to an assignee
that shall assume such obligations (which assignee may be, but is not required
to be, another Lender, if a Lender accepts such assignment), provided that:

 

(a)                                  the
Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 11.7;

 

(b)                                 such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder and under the other Loan Documents (including
any amounts under Section 2.14) from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts);

 

(c)                                  in
the case of any such assignment resulting from a claim for compensation under
Section 2.13 or payments required to be made pursuant to
Section 2.11, such assignment will result in a reduction in such
compensation or payments thereafter;

 

(d)                                 such
assignment does not conflict with applicable Laws; and

 

(e)                                  from
and after the effective date of such assignment the assigning Lender thereunder
shall, be released from its obligations under this Agreement and shall cease to
be a party hereto, but shall continue to be entitled to the benefits of
Sections 2.11, 2.13, 2.14, 11.5 and 11.12 with respect to facts and
circumstances occurring prior to the effective date of such assignment.

 

A Lender shall not be required to make any
such assignment or delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

 

12.                                 Relationship

 

Neither the Administrative Agent nor any
Lender has any fiduciary relationship with or fiduciary duty to the Borrower,
the Subsidiary Guarantors or their respective Subsidiaries arising out of or in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereunder and thereunder, and the relationship between each Lender
and the Borrower is solely that of a lender and borrower, and nothing contained
herein or in any of the other Loan Documents shall in any manner be construed
as making the parties hereto partners, joint venturers or any other
relationship other than lender and borrower.

 

[SIGNATURES COMMENCE ON FOLLOWING PAGE]

 

90

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed and delivered by their proper and
duly authorized officers as of the day and year first above written.

 

	
   

  	
  NEW PLAN EXCEL REALTY TRUST, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John B. Roche

  	
   

  
	
   

  	
   

  	
  John B. Roche,

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

91

 

	
   

  	
  BANK OF AMERICA, N.A., a national banking

  association, individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Michael W. Edwards

  	
   

  
	
   

  	
   

  	
  Name: 
  Michael W. Edwards

  
	
   

  	
   

  	
  Title: 
  Managing Director

  
	
   

  	
   

  
	
  Bank of
  America, N.A.

  	
   

  
	
  Agency
  Management

  	
   

  
	
  TX1-492-14-11

  901 Main Street, 14th Floor

  	
   

  
	
  Dallas, TX  75202

  	
   

  
	
  Attention:

  	
  Kajal Patel

  	
   

  
	
  Telecopy:

  	
  (214) 290-9448

  	
   

  
	
   

  	
   

  
	
  and

  	
   

  
	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  
	
  231 South LaSalle Street, 10th Floor

  	
   

  
	
  Chicago, Illinois 60697

  	
   

  
	
  Attn:  Mark A. Mokelke

  	
   

  
	
  Telecopy:

  	
  (312) 974-4970

  	
   

  

 

92

 

	
   

  	
  THE BANK OF NEW YORK, individually and as

  Syndication Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
         /s/
  Rick Laudisi

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Rick Laudisi

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
  Bank of New
  York

  One Wall Street, 21st Floor

  	
   

  	
   

  
	
  New York, New York 10286

  	
   

  	
   

  
	
  Attn:  Mr. Rick Laudisi

  	
   

  	
   

  
	
  Facsimile:  (212) 809-9526

  	
   

  	
   

  
								

 

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION, a

  national banking association, individually and as

  Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
         /s/
  John Scott

  	
   

  
	
   

  	
  Name:

  	
   

  	
  John Scott

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
  KeyBank
  National Association

  1146 19th Street, NW, Suite 400

  	
   

  	
   

  
	
  Washington,
  DC  20036

  	
   

  	
   

  
	
  Attn:  Mr. John C. Scott

  	
   

  	
   

  
	
  Facsimile:  (202) 452-4925

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KeyBank National Association

  1146 19th Street, NW, Suite 400

  	
   

  	
   

  
	
  Washington, DC  20036

  	
   

  	
   

  
	
  Attn:  Ms. Jennifer Dakin

  	
   

  	
   

  
	
  Facsimile:  (202) 452-4925

  	
   

  	
   

  
								

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  individually and as Co-Managing Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
         /s/
  Thomas Nastarowicz

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Thomas Nastarowicz

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
  PNC Bank, National Association

  	
   

  	
   

  
	
  Two Tower
  Center Blvd.

  18th Floor

  	
   

  	
   

  
	
  East Brunswick, New Jersey 
  08816

  	
   

  	
   

  
	
  Attn:  Thomas Nastarowicz

  	
   

  	
   

  
								

 

 

	
   

  	
  SUNTRUST BANK, individually and as Co-

  Managing Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
         /s/
  Nancy B. Richards

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Nancy B. Richards

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
  SunTrust Bank

  	
   

  	
   

  
	
  Real Estate Finance Group

  	
   

  	
   

  
	
  8245 Boone Boulevard

  	
   

  	
   

  
	
  Suite 820

  	
   

  	
   

  
	
  Vienna, Virginia  22182

  	
   

  	
   

  
	
  Attn:  Nancy B. Richards

  	
   

  	
   

  
	
  Facsimile:  (703) 902-9245

  	
   

  	
   

  
								

 

 

EXHIBIT C-1

 

	
  Equity Interests Owner

  	
   

  	
  Equity Interests Property

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1. HK New Plan Marwood Sunshine Cheyenne, LLC

  	
   

  	
  Cheyenne Plaza

  Marwood Plaza

  Sunshine Square

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2. HK New Plan Upper Tier Normandy Square, LLC

  	
   

  	
  Normandy Square

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3. HK New Plan Vineyards GP, LLC

  	
   

  	
  The Vineyards

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4. HK New Plan Vineyards, L.P.

  	
   

  	
  The Vineyards

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5. HK New Plan Alexis Park GP, LLC

  	
   

  	
  Alexis Park

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6. HK New Plan Alexis Park, L.P.

  	
   

  	
  Alexis Park

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7. HK New Plan Bristol Plaza GP, LLC

  	
   

  	
  Bristol Plaza

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8. HK New Plan Bristol Plaza L.P., LLC

  	
   

  	
  Bristol Plaza

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9. HK New Plan STH Upper Tier I, LLC

  	
   

  	
  Arvada Plaza

  Aurora Plaza

  Covered Bridge Shopping Center

  Hilltop Plaza

  Merchants Crossing

  Sun Plaza

  University IV Shopping Center

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10. HK New Plan STH Mid Tier II, LLC

  	
   

  	
  Festival Center

  Lexington Town Square

  Northshore Plaza

  Olympia Corners

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11. HK New Plan STH Upper Tier III, LLC

  	
   

  	
  Green Acres Shopping Center

  Parkway Plaza

  	
   

  

 

1

 

EXHIBIT C-2

 

DISTRIBUTIONS INTERESTS PROPERTIES

 

	
  Distribution Interests Owner

  	
   

  	
  Distribution
  Interests Property

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1. New Plan Hampton Village, LLC

  	
   

  	
  Hampton Village Center

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2. Excel Westminster Marketplace, Inc.

  	
   

  	
  Westminster City Centre

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3. New Plan of Panama, Inc.

  	
   

  	
  Panama City Square

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4. New Plan of Panama, LLC

  	
   

  	
  Panama City Square

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5. HK New Plan Skyway Plaza, LLC

  	
   

  	
  Skyway Plaza

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6. CA New Plan V

  	
   

  	
  Bay Forest-Cedar Lake

  Braes Heights

  Braes Oaks

  Brenham Four Corners

  Broadway

  Bryan Square

  Carmel Village

  Cedar Bellaire

  Claremont Village (Highland Village)

  Clear Lake Camino South

  El Camino I

  Five Points

  Forest Hills

  Highland Village Town Center

  Huntington Village

  Jeff Davis

  Jefferson Park

  Klein Square

  Lazybrook

  League City

  Maplewood Mall

  North 45 Plaza (Moore Square)

  North Hills Village

  Northgate

  Northshore East

  Northtown Plaza

  Palm Plaza

  Parktown

  Parkview East

  Parkview West

  Randall’s Center-Baytown

  	
   

  

 

1

 

	
   

  	
   

  	
  Silver Hills

  Socorro

  Stevens Park Village

  Tanglewilde

  Texas City Bay

  Tidwell Place

  Village Plaza

  Washington Square

  Webb Royal

  Westheimer Commons

  Wynnewood Village

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7. New Plan Financing I, Inc.

  	
   

  	
  Greentree Shopping Center

  Merchant’s Central

  	
   

  

 

2

 

EXHIBIT C-3

 

ADDITIONAL INTERESTS PROPERTIES

 

	
  Additional Interests Owner

  	
   

  	
  Additional
  Interests Property

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1. New Plan Excel Realty Trust, Inc.

  	
   

  	
  Brice Park Shopping Center

  Crown Point Shopping Center

  Northgate Shopping Center

  Genesse Valley Shopping Centre

  Roundtree Place

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2. Excel Realty Trust-ST, Inc.

  	
   

  	
  Perry Marketplace

  Circle Center

  Grants Mill Station

  Lagniappe Village

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3. New Plan Realty Trust

  	
   

  	
  Dickson City Crossings

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.  New Plan Property Holding
  Company

  	
   

  	
  Highland Commons

  London Marketplace

  Lexington Road Plaza

  Mist Lake Plaza

  Florence Square

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5. Excel Realty Trust-NC

  	
   

  	
  Chapel Square SC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6. Excel Realty-PA, Inc.

  	
   

  	
  Johnstown Galleria

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7. NP of Tennessee, L.P.

  	
   

  	
  Saddletree Village

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8. ERP Financing, LLC

  	
   

  	
  Northside Plaza

  Habersham Crossing

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9. Excel Realty Partners, L.P.

  	
   

  	
  Riverview Plaza

  Bakersfield Plaza

  Briggsmore Plaza

  Bristol Plaza

  Cudahy Plaza

  Montebello Plaza

  Paradise Plaza

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10. HK New Plan ERP Property Holdings, LLC

  	
   

  	
  Elkhart Market Centre

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11. HK New Plan Hunt River Commons, LLC

  	
   

  	
  Hunt River Commons

  	
   

  

 

1

 

	
  12. HK New Plan Tuckernuck Square, LLC

  	
   

  	
  Tuckernuck Square

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13. HK New Plan Glengary, L.P.

  	
   

  	
  Glengary Shopping Center

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14. HK New Plan Karl Plaza, L.P.

  	
   

  	
  Karl Plaza

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  15.  ERP of Midway, LLC

  	
   

  	
  Midway Market Square

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  16.  HK New Plan Exchange
  Property Owner II, L.P.

  	
   

  	
  Harper’s Station

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  17.  New Plan of Elk Grove,
  LLC

  	
   

  	
  Elk Grove Town Center

  	
   

  

 

2Exhibit 10.6

 

FIRST AMENDED AND RESTATED GUARANTY

 

FIRST AMENDED AND RESTATED GUARANTY (as the
same may be amended, supplemented or otherwise modified from time to time, this
“Guaranty”), dated as
of June 29, 2004, by and among each of the Subsidiaries listed on
Schedule I hereto (collectively, the “Subsidiary Guarantors”) and BANK OF AMERICA, N.A., as
administrative agent  (in such capacity,
the “Administrative Agent”)
on behalf of the Lenders under and as defined in the Loan Agreement
(hereinafter defined).

 

RECITALS

 

I.                                         Reference is
made to that certain Revolving Credit Agreement, dated as of April 26,
2002, by and among New Plan Excel Realty Trust, Inc., a Maryland corporation
(the “Borrower”),
Fleet National Bank, individually and as administrative agent (“FNB”) and the lenders
party thereto, as amended by that certain First Amendment to Revolving Credit
Agreement dated as of November 6, 2002, among Borrower, FNB and the
lenders party thereto and as further amended by that certain Second Amendment
to Revolving Credit Agreement dated as of September 29, 2003, among
Borrower, FNB and the lenders party thereto (as modified and amended,
collectively, the “Original Loan
Agreement”).

 

II.                                     FNB, individually
and as administrative agent, has assigned all of its rights and obligations
under the Original Loan Agreement, the Original Guaranty (as hereinafter
defined) and the other loan documents executed in connection therewith to Bank
of America, N.A., individually and as Administrative Agent.

 

III.                                 Borrower, the Lenders
and the Administrative Agent have entered into that certain First Amended and
Restated Revolving Credit Agreement, dated as of June 29, 2004, which
amends and restates the Original Loan Agreement (as the same may be amended,
supplemented or otherwise modified from time to time, the “Loan Agreement”).

 

IV.                                 In connection with the
execution and delivery of the Loan Agreement, the Subsidiary Guarantors and
Administrative Agent desire to amend and restate in its entirety that certain
Guaranty dated as of April 26, 2002, by the Subsidiary Guarantors in favor
of FNB for the benefit of the Lenders (as modified and amended from time to
time, the “Original
Guaranty”).

 

V.                                     The Administrative
Agent and the Lenders have made it a condition precedent to the effectiveness
of the Loan Agreement that each Subsidiary Guarantor execute and deliver this
Guaranty.

 

VI.                                 Each Subsidiary
Guarantor expects to derive substantial benefit from the Loan Agreement and the
transactions contemplated thereby and, in furtherance thereof, has agreed to
execute and deliver this Guaranty.

 

Therefore, in consideration of the Recitals,
the terms and conditions herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
each of the Subsidiary Guarantors and the Administrative Agent hereby amend and
restate the Original Guaranty in its entirety and covenant and agree as
follows:

 

 

1.                                       Defined
Terms

 

(a)                                  Capitalized
terms used herein which are not otherwise defined herein shall have the
respective meanings ascribed thereto in the Loan Agreement.

 

(b)                                 When
used in this Guaranty, the following capitalized terms shall have the
respective meanings ascribed thereto as follows:

 

“Borrower
Obligations” means all present and future
obligations and liabilities, whether deemed principal, interest, additional
interest, fees, expenses or otherwise of the Borrower to the Administrative
Agent and the Lenders, including, without limitation, all obligations under (i)
the Loan Agreement, (ii) the Notes (including, without limitation, the
Revolving Credit Notes, the Swing Loan Note and the Competitive Advance Notes),
(iii) the Letters of Credit, and (iv) all other Loan Documents.

 

“Guarantor
Obligations” means, with respect to each
Subsidiary Guarantor, all of the obligations and liabilities of such Subsidiary
Guarantor hereunder, whether fixed, contingent, now existing or hereafter
arising, created, assumed, incurred or acquired.

 

2.                                       Guarantee

 

(a)                                  Subject
to Section 2(b), each Subsidiary Guarantor hereby absolutely, irrevocably
and unconditionally guarantees the full and prompt payment when due (whether at
stated maturity, by acceleration or otherwise) of the Borrower
Obligations.  The agreements of each
Subsidiary Guarantor in this Guaranty constitute a guarantee of payment, and no
Credit Party shall have any obligation to enforce any Loan Document or exercise
any right or remedy with respect to any collateral security thereunder by any
action, including making or perfecting any claim against any Person or any
collateral security for any of the Borrower Obligations prior to being entitled
to the benefits of this Guaranty.  The
Administrative Agent may, at its option, proceed against the Subsidiary
Guarantors, or any one or more of them, in the first instance, to enforce the
Guarantor Obligations without first proceeding against the Borrower or any
other Person, and without first resorting to any other rights or remedies, as
the Administrative Agent may deem advisable. 
In furtherance hereof, if any Credit Party is prevented by law from
collecting or otherwise hindered from collecting or otherwise enforcing any
Borrower Obligation in accordance with its terms, such Credit Party shall be
entitled to receive hereunder from the Subsidiary Guarantors after demand
therefor, the sums which would have been otherwise due had such collection or
enforcement not been prevented or hindered.

 

(b)                                 Notwithstanding
anything to the contrary contained herein, the maximum aggregate amount of the
obligations of each Subsidiary Guarantor hereunder shall not, as of any date of
determination, exceed the lesser of  the
greatest amount that is valid and enforceable against such Subsidiary Guarantor
under principles of New York State contract law and  the greatest amount that would not render such Subsidiary
Guarantor’s liability hereunder subject to avoidance as a fraudulent transfer
or conveyance under Section 548 of Title 11 of the United States Code or
any provisions of applicable state law (collectively, the “Fraudulent Transfer
Laws”), in each case after giving effect to all other liabilities of such
Subsidiary Guarantor, contingent or otherwise, that are relevant under the
Fraudulent Transfer Laws (specifically excluding, however, any liability (A) in
respect of intercompany indebtedness to the Borrower or any Affiliate or
Subsidiary of the Borrower, to the extent that such intercompany indebtedness

 

2

 

would be discharged to the extent payment is made by such Subsidiary
Guarantor hereunder, and (B) under any guarantee of (1) senior unsecured
indebtedness or (2) indebtedness subordinated in right of payment to any
Borrower Obligation, in either case which contains a limitation as to maximum
liability similar to that set forth in this Section 2(b) and pursuant to
which the liability of such Subsidiary Guarantor hereunder is included in the
liabilities taken into account in determining such maximum liability) and after
giving effect as assets to the value (as determined under the applicable
provisions of the Fraudulent Transfer Laws) of any rights to subrogation,
contribution, reimbursement, indemnity or similar rights of such Subsidiary
Guarantor pursuant to applicable law or any agreement providing for an
equitable allocation among such Subsidiary Guarantor and other Affiliates or
Subsidiaries of the Borrower of obligations arising under guarantees by such
parties.

 

(c)                                  Each
Subsidiary Guarantor agrees that the Guarantor Obligations may at any time and
from time to time exceed the maximum aggregate amount of the obligations of
such Subsidiary Guarantor hereunder without impairing this Guaranty or
affecting the rights and remedies of any Credit Party hereunder.

 

3.                                       Absolute
Obligation

 

Except as provided by Section 8.2 of the
Loan Agreement, no Subsidiary Guarantor shall be released from liability
hereunder unless and until the Commitments of the Lenders have terminated and
either (i) the Borrower shall have paid in full the outstanding principal
balance of the Loans, together with all accrued and unpaid interest thereon,
and all other amounts then due and owing under the Loan Documents, or (ii) the
Guarantor Obligations of such Subsidiary Guarantor shall have been paid in full
in cash.  Each Subsidiary Guarantor
acknowledges and agrees that (a) no Credit Party has made any representation or
warranty to such Subsidiary Guarantor with respect to the Borrower, any of its
Subsidiaries, any Loan Document, or any agreement, instrument or document
executed or delivered in connection therewith, or any other matter whatsoever,
and (b) such Subsidiary Guarantor shall be liable hereunder, and such liability
shall not be affected or impaired, irrespective of (A) the validity or
enforceability of any Loan Document, or any agreement, instrument or document
executed or delivered in connection therewith, or the collectability of any of
the Borrower Obligations, (B) the preference or priority ranking with respect
to any of the Borrower Obligations, (C) the existence, validity, enforceability
or perfection of any security interest or collateral security under any Loan
Document, or the release, exchange, substitution or loss or impairment of any
such security interest or collateral security, (D) any failure, delay, neglect
or omission by any Credit Party to realize upon or protect any direct or
indirect collateral security, indebtedness, liability or obligation, any Loan
Document, or any agreement, instrument or document executed or delivered in
connection therewith, or any of the Borrower Obligations, (E) the existence or
exercise of any right of set-off by any Credit Party, (F) the existence,
validity or enforceability of any other guarantee with respect to any of the
Borrower Obligations, the liability of any other Person in respect of any of
the Borrower Obligations, or the release of any such Person or any other
guarantor of any of the Borrower Obligations, (G) any act or omission of any
Credit Party in connection with the administration of any Loan Document or any
of the Borrower Obligations, (H) the bankruptcy, insolvency, reorganization or
receivership of, or any other proceeding for the relief of debtors commenced by
or against, any Person, (I) the disaffirmance or rejection, or the purported
disaffirmance or purported rejection, of any of the Borrower Obligations, any
Loan Document, or any agreement, instrument or document executed or

 

3

 

delivered in connection therewith, in any bankruptcy, insolvency,
reorganization or receivership, or any other proceeding for the relief of
debtor, relating to any Person, (J) any law, regulation or decree now or
hereafter in effect which might in any manner affect any of the terms or
provisions of any Loan Document, or any agreement, instrument or document
executed or delivered in connection therewith or any of the Borrower
Obligations, or which might cause or permit to be invoked any alteration in the
time, amount, manner or payment or performance of any of the Borrower’s
obligations and liabilities (including the Borrower Obligations), (K) the
merger or consolidation of the Borrower into or with any Person, (L) the sale
by the Borrower of all or any part of its assets, (M) the fact that at any time
and from time to time none of the Borrower Obligations may be outstanding or
owing to any Credit Party, (N) any amendment or modification of, or supplement
to, any Loan Document, or (O) any other reason or circumstance which might
otherwise constitute a defense available to or a discharge of the Borrower in
respect of its obligations or liabilities (including the Borrower Obligations)
or of such Subsidiary Guarantor in respect of any of the Guarantor Obligations
(other than by the performance in full thereof).

 

4.                                       Representations
and Warranties

 

(a)                                  Each
of the Subsidiary Guarantors represents and warrants as to itself that all
representations and warranties relating to it contained in the Loan Agreement
are true and correct.

 

(b)                                 Each
of the Subsidiary Guarantors represents and warrants as to itself that it has
full legal power and authority to enter into, execute, deliver and perform the
terms of this Guaranty, all of which have been duly authorized by all proper
and necessary corporate or trust action.

 

(c)                                  Each
of the Subsidiary Guarantors represents and warrants as to itself that this
Guaranty constitutes the valid and legally binding obligations of such
Subsidiary Guarantor, and is enforceable in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors’
rights generally; and that the execution, delivery and performance by such
Subsidiary Guarantor of this Guaranty does not violate the provisions of any
applicable statute, law, rule or regulation of any Governmental Authority.

 

(d)                                 Each
of the Subsidiary Guarantors represents and warrants as to itself that no
consent, authorization or approval of, filing with, notice to, or exemption by,
stockholders, any Governmental Authority or any other Person not obtained is
required to be obtained by such Subsidiary Guarantor to authorize, or is
required in connection with, the execution, delivery and performance of this
Guaranty or is required to be obtained by such Subsidiary Guarantor as a
condition to the validity or enforceability of this Guaranty.

 

5.                                       Notices

 

Except as otherwise specifically provided
herein, all notices, requests, consents, demands, waivers and other
communications hereunder shall be in writing (including facsimile) and shall be
given in the manner set forth in Section 11.2 of the Loan Agreement (i) in
the case of the Administrative Agent, to the address set forth in
Section 11.2 of the Loan Agreement, (ii) in the case of a Subsidiary
Guarantor, to the address set forth in Schedule I hereto, or (iii) in the

 

4

 

case of each party hereto, to such other addresses as to which the
Administrative Agent may be hereafter notified by the respective parties
hereto.

 

6.                                       Expenses

 

Each Subsidiary Guarantor agrees that it
shall, promptly after demand, pay to the Administrative Agent any and all
reasonable out-of-pocket sums, costs and expenses, which any Credit Party may
pay or incur defending, protecting or enforcing this Guaranty (whether suit is
instituted or not), reasonable attorneys’ fees and disbursements.  All sums, costs and expenses which are due
and payable pursuant to this Section shall bear interest, payable on
demand, at the highest rate then payable on the Borrower Obligations.

 

7.                                       Repayment
in Bankruptcy, etc.

 

If, at any time or times subsequent to the
payment of all or any part of the Borrower Obligations or the Guarantor
Obligations, any Credit Party shall be required to repay any amounts previously
paid by or on behalf of the Borrower or any Subsidiary Guarantor in reduction
thereof by virtue of an order of any court having jurisdiction in the premises,
including as a result of an adjudication that such amounts constituted
preferential payments or fraudulent conveyances, the Subsidiary Guarantors
unconditionally agree to pay to the Administrative Agent, within 10 days after
demand, a sum in cash equal to the amount of such repayment, together with
interest on such amount from the date of such repayment by such Credit Party to
the date of payment to the Administrative Agent at the applicable
after-maturity rate set forth in the Loan Agreement.

 

8.                                       Miscellaneous

 

(a)                                  Except
as otherwise expressly provided in this Guaranty, each Subsidiary Guarantor
hereby waives presentment, demand for payment, notice of default,
nonperformance and dishonor, protest and notice of protest of or in respect of
this Guaranty, the other Loan Documents and the Borrower Obligations, notice of
acceptance of this Guaranty and reliance hereupon by any Credit Party, and the
incurrence of any of the Borrower Obligations, notice of any sale of collateral
security or any default of any sort.

 

(b)                                 No
Subsidiary Guarantor is relying upon any Credit Party to provide to such
Subsidiary Guarantor any information concerning the Borrower or any of its
Subsidiaries, and each Subsidiary Guarantor has made arrangements satisfactory
to such Subsidiary Guarantor to obtain from the Borrower on a continuing basis
such information concerning the Borrower and its Subsidiaries as such
Subsidiary Guarantor may desire.

 

(c)                                  Each
Subsidiary Guarantor agrees that any statement of account with respect to the
Borrower Obligations from any Credit Party to the Borrower which binds the
Borrower shall also be binding upon such Subsidiary Guarantor, and that copies
of said statements of account maintained in the regular course of or such
Credit Party’s business may be used in evidence against such Subsidiary
Guarantor in order to establish its Guarantor Obligations.

 

(d)                                 Each
Subsidiary Guarantor acknowledges that it has received a copy of the Loan
Documents and has approved of the same. 
In addition, each Subsidiary Guarantor

 

5

 

acknowledges having read each Loan Document and having had the advice
of counsel in connection with all matters concerning its execution and delivery
of this Guaranty.

 

(e)                                  This
Guaranty shall be binding upon each Subsidiary Guarantor and its successors and
inure to the benefit of, and be enforceable by the Administrative Agent,
Lenders and their respective successors, transferees and assigns.  No Subsidiary Guarantor may assign any
right, or delegate any duty, it may have under this Guaranty.

 

(f)                                    Subject
to the limitations set forth in Section 2(b), the Guarantor Obligations
shall be joint and several.

 

(g)                                 This
Guaranty is the “Guaranty” referred to in the Loan Agreement, and is subject
to, and should be construed in accordance with, the provisions thereof.  Each of the parties hereto acknowledges and
agrees that the following provisions of the Loan Agreement are made applicable
to this Guaranty and all such provisions are incorporated by reference herein
as if fully set forth herein, including Sections 1 (Definitions), 2.11 (Taxes; Net
Payments), 9.1 (Events of Default), 11.1 (Amendments
and Waivers), 11.3 (No Waiver; Cumulative Remedies), 11.5 (Payment of
Expenses and Taxes), 11.7 (Successors and Assigns), 11.9 (Counterparts),
11.12 (Indemnity),
11.13 (Governing
Law), 11.14, (Headings Descriptive), 11.15 (Severability),
11.16 (Integration),
11.17 (Consent
to Jurisdiction), 11.18 (Service of Process), 11.19 (No
Limitation on Service or Suit) and 11.20 (WAIVER OF TRIAL BY JURY)
thereof.

 

(h)                                 Each
Subsidiary Guarantor agrees that (i) the execution and delivery of a Guaranty
by any Required Additional Guarantor after the date hereof shall not affect the
obligations of the Subsidiary Guarantors hereunder, and (ii) the Subsidiary
Guarantors and each such Required Additional Guarantor shall, subject to
Section 2(b), be jointly and severally liable for all of the Borrower
Obligations.

 

(i)                                     If,
notwithstanding the provisions of Section 8(g) above, this Guaranty is
deemed to be governed by California law, then the following shall apply but
shall not in any way limit the generality of any other provisions contained in
this Guaranty.

 

The Subsidiary Guarantors hereby waive (a)
any defense of the Subsidiary Guarantors based upon a Credit Party’s election
of any remedy against the Subsidiary Guarantors or Borrower or both;
(b) any defense based upon a Credit Party’s failure to disclose to the
Subsidiary Guarantors any information concerning Borrower’s financial condition
or any other circumstances bearing on Borrower’s ability to pay all sums
payable under the Loan Documents; (c) any defense based upon any statute
or rule of law which provides that the obligation of a surety must be neither
larger in amount nor in any other respects more burdensome than that of a
principal; (d) any defense based upon a Credit Party’s election, in any
proceeding instituted under Title 11, U.S.C.A., as amended from time to time or
any successor thereto (the “Bankruptcy Code”), of the application of
Section 1111(b)(2) of the Bankruptcy Code or any successor statute;
(e) any right of subrogation, any right to enforce any remedy which a
Credit Party may have against Borrower and any right to participate in, or
benefit from, any security for any of the Loan Documents now or hereafter held
by the Credit Parties; and (f) benefit of any statute of limitations
affecting the liability of the Subsidiary Guarantors hereunder or the
enforcement hereof.  Without limiting
the generality of the foregoing or any other provision hereof, the Subsidiary
Guarantors expressly waive any and all benefits which might otherwise be
available to the Subsidiary Guarantors under Sections 2787 to 2855, inclusive,
of the California

 

6

 

Civil Code, including without limitation, Sections 2809, 2810, 2819,
2839, 2845, 2849 and 2850, and all benefits which might otherwise be available
to the Subsidiary Guarantors under Sections 2899 and 3433 of the California
Civil Code and the California Code of Civil Procedure Sections 580a, 580b, 580d
and 726, or any of such sections.  Furthermore,
without limitation of any waiver otherwise set forth herein, the Subsidiary
Guarantors waive all rights and defenses arising out of an election of remedies
by the Credit Parties even though that election of remedies, such as a
nonjudicial foreclosure with respect to the security for a guaranteed
obligation, has destroyed the Subsidiary Guarantors’ rights of subrogation and
reimbursement against the principal by operation of Section 580d of the
California Code of Civil Procedure or otherwise.

 

[SIGNATURES COMMENCE ON
FOLLOWING PATE]

 

7

 

IN EVIDENCE of the agreement by the parties
hereto to the terms and conditions herein contained, each such party has caused
this Guaranty to be duly executed on its behalf.

 

	
   

  	
  NEW PLAN REALTY TRUST, a

  Massachusetts business trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
  Title:

  	
   

  	
  Executive Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXCEL REALTY TRUST - ST, INC., a

  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
  Title:

  	
   

  	
  Executive Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW PLAN FACTORY MALLS, INC., a

  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
  Title:

  	
   

  	
  Executive Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
   

  	
  CA NEW PLAN ASSET PARTNERSHIP IV,

  L.P., a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  CA New Plan Asset, Inc., a Delaware

  corporation, its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
									

 

8

 

	
   

  	
  EXCEL REALTY TRUST-NC, a North

  Carolina general partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  NC Properties #1 Inc., a Delaware

  corporation, its managing partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
   

  	
  NP OF TENNESSEE, L.P., a Delaware limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  New Plan of Tennessee, Inc., a Delaware

  corporation, its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
   

  	
  POINTE ORLANDO DEVELOPMENT

  COMPANY, a California general partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  ERT Development Corporation, a

  Delaware corporation, general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  ERT Pointe Orlando, Inc., a New York

  Corporation, a New York corporation,

  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
							

 

9

 

	
   

  	
  CA NEW PLAN TEXAS ASSETS, L.P., a

  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  CA New Plan Floating Rate SPE, Inc., a

  Delaware corporation, its sole general

  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HK NEW PLAN EXCHANGE PROPERTY

  OWNER I, LLC, a Delaware limited liability

  company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
  Title:

  	
   

  	
  Executive Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW PLAN OF ILLINOIS, LLC, a Delaware

  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
  Title:

  	
   

  	
  Executive Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW PLAN PROPERTY HOLDING

  COMPANY, a Maryland real estate investment

  trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven F. Siegel

  
	
   

  	
  Name:

  	
  Steven F. Siegel

  
	
   

  	
  Title:

  	
   

  	
  Executive Vice President and Secretary

  
									

 

10

 

	
   

  	
  BANK OF AMERICA, N.A., as

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Kelley Prentiss

  
	
   

  	
  Name:

  	
  Kelley Prentiss

  
	
   

  	
  Title:

  	
   

  	
  Principal

  
						

 

11

 

SCHEDULE I

 

TO SUBSIDIARY GUARANTY

 

SUBSIDIARY GUARANTORS

 

UNDER FIRST AMENDED AND RESTATED GUARANTY

DATED AS OF JUNE 29, 2004

 

	
  Name

  	
   

  	
  Jurisdiction
  of

  Incorporation or Formation

  	
   

  	
  Address
  for Notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan Realty Trust

  	
   

  	
  Massachusetts

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excel Realty Trust – ST, Inc.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan Factory Malls, Inc.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CA New Plan Asset Partnership IV, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excel Realty Trust-NC

  	
   

  	
  North Carolina

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NP of Tennessee, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pointe Orlando Development Company

  	
   

  	
  California

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  

 

12

 

	
  Name

  	
   

  	
  Jurisdiction
  of

  Incorporation or Formation

  	
   

  	
  Address
  for Notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CA New Plan Texas Assets, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HK New Plan Exchange Property Owner I, LLC

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan of Illinois, LLC

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan Property Holding Company

  	
   

  	
  Maryland

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]