Document:

Exhibit
10.1

CREDIT AGREEMENT

Dated as of
December 6, 2006

Among

BOSTON
CAPITAL REAL ESTATE

INVESTMENT TRUST, INC.

as the Borrower,

WACHOVIA
BANK, NATIONAL ASSOCIATION,

as Administrative Agent 

and

L/C Issuer,

WACHOVIA
CAPITAL MARKETS, LLC, AS SOLE LEAD ARRANGER

AND SOLE BOOK MANAGER

and

The Other Lenders
Party Hereto

Up to
$45,000,000.00

 

 

TABLE OF CONTENTS

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I.

  	
   

  	
  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
  1

  
	
  1.01

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.02

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  20

  
	
  1.03

  	
   

  	
  Accounting Terms

  	
   

  	
  21

  
	
  1.04

  	
   

  	
  Rounding

  	
   

  	
  22

  
	
  1.05

  	
   

  	
  Times of Day

  	
   

  	
  22

  
	
  1.06

  	
   

  	
  Letter of Credit Amounts

  	
   

  	
  22

  
	
  ARTICLE II.

  	
   

  	
  THE COMMITMENTS AND
  CREDIT EXTENSIONS

  	
   

  	
  22

  
	
  2.01

  	
   

  	
  Committed Loans

  	
   

  	
  22

  
	
  2.02

  	
   

  	
  Borrowings, Conversions and Continuations of
  Committed Loans

  	
   

  	
  23

  
	
  2.03

  	
   

  	
  Letters of Credit

  	
   

  	
  25

  
	
  2.04

  	
   

  	
  Intentionally Omitted

  	
   

  	
  32

  
	
  2.05

  	
   

  	
  Prepayments

  	
   

  	
  32

  
	
  2.06

  	
   

  	
  Termination or Reduction of Commitments

  	
   

  	
  33

  
	
  2.07

  	
   

  	
  Repayment of Loans

  	
   

  	
  34

  
	
  2.08

  	
   

  	
  Interest

  	
   

  	
  35

  
	
  2.09

  	
   

  	
  Fees

  	
   

  	
  36

  
	
  2.10

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  36

  
	
  2.11

  	
   

  	
  Evidence of Debt

  	
   

  	
  36

  
	
  2.12

  	
   

  	
  Payments Generally; Administrative Agent’s Clawback

  	
   

  	
  37

  
	
  2.13

  	
   

  	
  Sharing of Payments by Lenders

  	
   

  	
  39

  
	
  2.14

  	
   

  	
  Extension of Maturity Date

  	
   

  	
  39

  
	
  ARTICLE III.

  	
   

  	
  TAXES, YIELD PROTECTION
  AND ILLEGALITY

  	
   

  	
  41

  
	
  3.01

  	
   

  	
  Taxes

  	
   

  	
  41

  
	
  3.02

  	
   

  	
  Illegality

  	
   

  	
  43

  
	
  3.03

  	
   

  	
  Inability to Determine Rates

  	
   

  	
  43

  
	
  3.04

  	
   

  	
  Increased Costs

  	
   

  	
  43

  
	
  3.05

  	
   

  	
  Compensation for Losses

  	
   

  	
  45

  
	
  3.06

  	
   

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  45

  
	
  3.07

  	
   

  	
  Survival

  	
   

  	
  46

  
	
  ARTICLE IV.

  	
   

  	
  CONDITIONS PRECEDENT TO
  CREDIT EXTENSIONS

  	
   

  	
  46

  
	
  4.01

  	
   

  	
  Conditions of Initial Borrowing

  	
   

  	
  46

  
	
  4.02

  	
   

  	
  Conditions to all Credit Extensions

  	
   

  	
  48

  
	
  ARTICLE V.

  	
   

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  	
  48

  
	
  5.01

  	
   

  	
  Existence, Qualification and Power; Compliance with
  Laws

  	
   

  	
  48

  
	
  5.02

  	
   

  	
  Authorization; No Contravention

  	
   

  	
  49

  
	
  5.03

  	
   

  	
  Governmental Authorization; Other Consents

  	
   

  	
  49

  
	
  5.04

  	
   

  	
  Binding Effect

  	
   

  	
  49

  
	
  5.05

  	
   

  	
  Financial Statements; No Material Adverse Effect; No
  Internal Control Event

  	
   

  	
  49

  
	
  5.06

  	
   

  	
  Litigation

  	
   

  	
  50

  
	
  5.07

  	
   

  	
  No Default

  	
   

  	
  50

  
	
  5.08

  	
   

  	
  Ownership of Property; Liens

  	
   

  	
  50

  
	
  5.09

  	
   

  	
  Environmental Compliance

  	
   

  	
  51

  
	
  5.10

  	
   

  	
  Insurance

  	
   

  	
  51

  

 

 i
 

 

 

	
  5.11

  	
   

  	
  Taxes

  	
   

  	
  51

  
	
  5.12

  	
   

  	
  ERISA Compliance

  	
   

  	
  51

  
	
  5.13

  	
   

  	
  Subsidiaries; Equity Interests

  	
   

  	
  52

  
	
  5.14

  	
   

  	
  Margin Regulations; Investment Company Act; Public
  Utility Holding Company Act

  	
   

  	
  52

  
	
  5.15

  	
   

  	
  Disclosure

  	
   

  	
  52

  
	
  5.16

  	
   

  	
  Compliance with Laws

  	
   

  	
  53

  
	
  5.17

  	
   

  	
  Intellectual Property; Licenses, Etc

  	
   

  	
  53

  
	
  5.18

  	
   

  	
  Qualification as REIT

  	
   

  	
  53

  
	
  ARTICLE VI.

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  53

  
	
  6.01

  	
   

  	
  Financial Statements

  	
   

  	
  53

  
	
  6.02

  	
   

  	
  Certificates; Other Information

  	
   

  	
  54

  
	
  6.03

  	
   

  	
  Notices

  	
   

  	
  56

  
	
  6.04

  	
   

  	
  Payment of Obligations

  	
   

  	
  57

  
	
  6.05

  	
   

  	
  Preservation of Existence, Qualification as REIT,
  Etc

  	
   

  	
  57

  
	
  6.06

  	
   

  	
  Maintenance of Properties

  	
   

  	
  57

  
	
  6.07

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  57

  
	
  6.08

  	
   

  	
  Compliance with Laws

  	
   

  	
  57

  
	
  6.09

  	
   

  	
  Books and Records

  	
   

  	
  57

  
	
  6.10

  	
   

  	
  Inspection Rights

  	
   

  	
  58

  
	
  6.11

  	
   

  	
  Use of Proceeds

  	
   

  	
  58

  
	
  6.12

  	
   

  	
  Intentionally Omitted

  	
   

  	
  58

  
	
  6.13

  	
   

  	
  Account

  	
   

  	
  58

  
	
  ARTICLE VII.

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  58

  
	
  7.01

  	
   

  	
  Liens

  	
   

  	
  58

  
	
  7.02

  	
   

  	
  Investments

  	
   

  	
  59

  
	
  7.03

  	
   

  	
  Indebtedness

  	
   

  	
  60

  
	
  7.04

  	
   

  	
  Fundamental Changes

  	
   

  	
  60

  
	
  7.05

  	
   

  	
  Dispositions

  	
   

  	
  61

  
	
  7.06

  	
   

  	
  Restricted Payments

  	
   

  	
  62

  
	
  7.07

  	
   

  	
  Change in Nature of Business

  	
   

  	
  63

  
	
  7.08

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  63

  
	
  7.09

  	
   

  	
  Burdensome Agreements

  	
   

  	
  63

  
	
  7.10

  	
   

  	
  Use of Proceeds

  	
   

  	
  63

  
	
  7.11

  	
   

  	
  Financial Covenants

  	
   

  	
  63

  
	
  ARTICLE VIII.

  	
   

  	
  EVENTS OF DEFAULT AND
  REMEDIES

  	
   

  	
  66

  
	
  8.01

  	
   

  	
  Events of Default

  	
   

  	
  66

  
	
  8.02

  	
   

  	
  Remedies Upon Event of Default

  	
   

  	
  68

  
	
  8.03

  	
   

  	
  Application of Funds

  	
   

  	
  68

  
	
  ARTICLE IX.

  	
   

  	
  ADMINISTRATIVE AGENT

  	
   

  	
  69

  
	
  9.01

  	
   

  	
  Appointment and Authority

  	
   

  	
  69

  
	
  9.02

  	
   

  	
  Rights as a Lender

  	
   

  	
  69

  
	
  9.03

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  70

  
	
  9.04

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  71

  
	
  9.05

  	
   

  	
  Delegation of Duties

  	
   

  	
  71

  
	
  9.06

  	
   

  	
  Resignation of Administrative Agent

  	
   

  	
  71

  
	
  9.07

  	
   

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
   

  	
  72

  
	
  9.08

  	
   

  	
  No Other Duties, Etc

  	
   

  	
  72

  

 

 ii
 

 

 

	
  9.09

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  72

  
	
  ARTICLE X.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  73

  
	
  10.01

  	
   

  	
  Amendments, Etc

  	
   

  	
  73

  
	
  10.02

  	
   

  	
  Notices; Effectiveness; Electronic Communication

  	
   

  	
  74

  
	
  10.03

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  76

  
	
  10.04

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  76

  
	
  10.05

  	
   

  	
  Payments Set Aside

  	
   

  	
  78

  
	
  10.06

  	
   

  	
  Successors and Assigns

  	
   

  	
  78

  
	
  10.07

  	
   

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  82

  
	
  10.08

  	
   

  	
  Right of Setoff

  	
   

  	
  82

  
	
  10.09

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  83

  
	
  10.10

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  83

  
	
  10.11

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  83

  
	
  10.12

  	
   

  	
  Severability

  	
   

  	
  84

  
	
  10.13

  	
   

  	
  Replacement of Lenders

  	
   

  	
  84

  
	
  10.14

  	
   

  	
  Governing Law; Sealed Instrument; Jurisdiction; Etc

  	
   

  	
  84

  
	
  10.15

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  85

  
	
  10.16

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  86

  
	
  10.17

  	
   

  	
  Time of the Essence

  	
   

  	
  86

  
	
  10.18

  	
   

  	
  ENTIRE AGREEMENT

  	
   

  	
  86

  
	
  10.19

  	
   

  	
  RECOURSE

  	
   

  	
  86

  
	
  SIGNATURES

  	
   

  	
  S-1

  

 

 iii
 

 

 

SCHEDULES

	
  2.01

  	
   

  	
  Commitments and Applicable Percentages

  	
   

  	
   

  
	
  5.05

  	
   

  	
  Supplement to Interim Financial Statements

  	
   

  	
   

  
	
  5.06

  	
   

  	
  Litigation

  	
   

  	
   

  
	
  5.09

  	
   

  	
  Environmental Matters

  	
   

  	
   

  
	
  5.13

  	
   

  	
  Subsidiaries; Other Equity Investments

  	
   

  	
   

  
	
  5.17

  	
   

  	
  Intellectual Property Matters

  	
   

  	
   

  
	
  7.01

  	
   

  	
  Existing Liens

  	
   

  	
   

  
	
  7.03

  	
   

  	
  Existing Indebtedness

  	
   

  	
   

  
	
  10.02

  	
   

  	
  Administrative Agent’s Office; Certain Addresses for
  Notices

  	
   

  	
   

  
	
  10.06

  	
   

  	
  Processing and Recordation Fees

  	
   

  	
   

  

 

EXHIBITS

	
  

  	
   

  	
  Form
  of

  	
   

  	
   

  
	
  A

  	
   

  	
  Committed Loan Notice

  	
   

  	
   

  
	
  B

  	
   

  	
  Note

  	
   

  	
   

  
	
  C

  	
   

  	
  Compliance Certificate

  	
   

  	
   

  
	
  D

  	
   

  	
  Assignment and Assumption

  	
   

  	
   

  
	
  E

  	
   

  	
  Opinion Matters

  	
   

  	
   

  

 

 iv

 

 

CREDIT AGREEMENT

This CREDIT AGREEMENT (“Agreement”)
is entered into as of December 6, 2006, among
BOSTON CAPITAL REAL ESTATE INVESTMENT TRUST, INC., a  Maryland corporation (the “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), and WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent and L/C Issuer.

The Borrower has
requested that the Lenders provide a credit facility to the Borrower, and the
Lenders are willing to do so on the terms and conditions set forth herein.

In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

ARTICLE
I.

DEFINITIONS AND ACCOUNTING TERMS

1.01        Defined
Terms.  As used in this
Agreement, the following terms shall have the meanings set forth below:

“AD/AV
Ratio” has the meaning specified in Section 7.11(a).

“Administrative
Agent” means Wachovia Bank, National Association in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other
address or account as the Administrative Agent may from time to time notify to
the Borrower and the Lenders.

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

“Affiliate” means, with respect to any Person,
another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person
specified.

“Aggregate Commitments”
means the Commitments of all the Lenders.

“Aggregate Debt”
has the meaning specified in Section 7.11(a)(ii).

“Aggregate Debt
Service” has the meaning specified in Section 7.11(b)(i).

“Aggregate Value of
the Borrowing Base Real Estate”  has
the meaning specified in Section 7.11(a)(ii).

“Agreement”
means this Credit Agreement.

“Applicable
Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments
represented by such

 1
 

 

 

Lender’s
Commitment at such time.  If the
commitment of each Lender to make Loans and the obligation of the L/C Issuer to
make L/C Credit Extensions have been terminated pursuant to Section 8.02
or if the Aggregate Commitments have expired, then the Applicable Percentage of
each Lender shall be determined based on the Applicable Percentage of such
Lender most recently in effect, giving effect to any subsequent
assignments.  The initial Applicable
Percentage of each Lender is set forth opposite the name of such Lender on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable.

“Applicable Rate” means the following
percentages per annum as determined by the Administrative Agent based upon the
AD/AV Ratio as set forth in the most recent Compliance Certificate received by
the Administrative Agent pursuant to Section 6.02(b):

	
  Pricing

  Level

  	
   

  	
  AD/AV Ratio

  	
   

  	
  Eurodollar

  Rate +

  	
   

  	
  Base Rate +

  
	
  1

  	
   

  	
  AD/AV ≤ 70%

  	
   

  	
  200 basis points

  	
   

  	
  100 basis points

  
	
  2

  	
   

  	
  70%<AD/AV≤75%

  	
   

  	
  225 basis points

  	
   

  	
  100 basis points

  
	
  3

  	
   

  	
  75%<AD/AV ≤80%

  	
   

  	
  275 basis points

  	
   

  	
  100 basis points

  

 

Any increase or decrease
in the Applicable Rate resulting from a change in the AD/AV Ratio shall become
effective as of the first Business Day immediately following the date a
Compliance Certificate is delivered pursuant to Section 6.02(b); provided,
however, that if a Compliance Certificate is not delivered when due in
accordance with such Section, then Pricing Level 3 shall apply as of the first
Business Day after the date on which such Compliance Certificate was required
to have been delivered.  The Applicable
Rate in effect from the Closing Date through December 31, 2006 shall be
determined based upon Pricing Level II.

 2

 

 

“Appraisal”
means, singly and collectively, as applicable, the Original Appraisal and/or
any Updated Appraisal.

“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.

“Asset
Management Fee” means an asset management fee payable to the Borrower’s
Advisor in the amount of three quarters of one percent (0.75%) per annum, as
described in the Borrower’s Prospectus, which the Borrower may pay so long as
no Default or Event of Default shall have occurred and be continuing; provided,
however, that any obligation on the part of the Borrower to pay such Asset
Management Fee shall at all times be subject and subordinate to the Obligations
hereunder pursuant to such agreements and other documentation as the
Administrative Agent may required from time to time, including, without
limitation, a subordination and intercreditor agreement with Borrower’s
Advisor.

“Assignee
Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

“Assignment
and Assumption” means 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 10.06(b), and accepted by the Administrative Agent,
in substantially the form of Exhibit D or any other form approved by the
Administrative Agent.

“Attributable
Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, and (b) in
respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a capital lease.

“Audited
Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2005, and
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of the Borrower and its
Subsidiaries, including the notes thereto.

“Availability”
means, as determined by the Administrative Agent, the result of:

(i)                                     The
amount of the Maximum Loan Amount, minus

(ii)                                  The
aggregate unpaid balance of the Committed Loans, minus

(iii)                               The aggregate undrawn
stated amount of all then outstanding Letters of Credit.

“Availability Period” means the period from and
including the Closing Date to the earliest of (a) the Maturity Date, (b) the
date of termination of the Aggregate Commitments pursuant to Section 2.06,
and (c) the date of termination of the commitment of each Lender to

 1
 

 

 

make
Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions
pursuant to Section 8.02.

“Base
Rate” means
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 Wachovia Bank, National
Association  as its “prime rate.”  The “prime rate” is a rate set by Wachovia Bank,
National Association  based upon various
factors including Wachovia Bank, National Association’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 Wachovia Bank, National Association shall take effect at the
opening of business on the day specified in the public announcement of such
change.

“Base
Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

“Base
Rate Loan” means a Loan that bears interest based on the Base Rate.

“BCP”
means BCP Funding, LLC.

“BCP
Credit Agreement” means that certain existing loan agreement dated May 31,
2003 between the Borrower, as borrower thereunder, and BCP, as lender
thereunder, pursuant to which BCP has provided the Borrower with a line of
credit facility in an amount of up to $60,000,000.00, with an outstanding
balance of approximately $56,596,665.00.

“BCP
Debt” means the Indebtedness of the Borrower to BCP pursuant to the BCP
Credit Agreement.

“Borrower”
has the meaning specified in the introductory paragraph hereto.

“Borrower
Equity Offering Termination Date” means July 1, 2007.

“Borrower
Materials” has the meaning specified in Section 6.02.

“Borrower
Net Cash Flow” means all amounts retained, distributed, or otherwise
payable to the Borrower from time to time on account of its direct or indirect
ownership of the Real Estate Projects and the Project Level Entities, after
payment of (i) reasonable operating and other reserves maintained by the
Borrower in accordance with GAAP, and (ii) amounts necessary to be paid by the
Borrower to continue to meet the requirements for qualification and taxation as
a REIT under the Code, all as reasonably determined by Administrative Agent in
consultation with Borrower’s REIT counsel.

“Borrowing”
means, singly and collectively, the Initial Borrowing, each Subsequent
Borrowing, as a Committed Borrowing, as
the context may require.

“Borrowing Base” shall
mean at any time of calculation, an amount equal to the lesser of (a) the sum
of (i) eighty percent (80%) of the Aggregate Value of the Borrowing Base Real
Estate minus (ii) the aggregate amount of all Borrowing Base Level Debt,
and (b) the Implied Loan Amount.

 2
 

 

 

“Borrowing
Base Level Debt” has the meaning specified in Section 7.11(a)(ii).

“Borrowing
Base Real Estate” means, singly and collectively, those Real Estate
Projects, whether now existing or hereafter acquired, which are acceptable to
Administrative Agent to constitute Borrowing Base Real Estate, as determined
solely and exclusively the Administrative Agent; but including all Real Estate
Projects owned by the Borrower and its Subsidiaries as of the date of this
Agreement, in each case, as described in Borrower’s Prospectus, provided that
any Real Estate Project owned directly or indirectly by a Subsidiary as to
which a Cross-Default Event (regardless of the whether the amount at issue is
in excess of the Threshold Amount) has occurred and is continuing shall not be
considered Borrowing Base Real Estate.

“Borrower’s
Advisor” means Boston Capital REIT Advisors, LLC.

“Borrower’s
Equity Offering” means the Borrower offering of shares of common stock in
the Borrower as outlined in the Borrower’s Prospectus.

“Borrower’s
Prospectus” means that certain prospectus dated April 28, 2006, as amended,
prepared by Borrower in connection with the Borrower’s Equity Offering.

“Borrower’s
Required Equity Contribution” means the initial equity contribution to be
made by the Borrower on the date of this Agreement in the amount necessary, in
conjunction with the Initial Borrowing, to satisfy in full the BCP Debt and the
Plano Debt in full and obtain the release of all related Liens securing the BCP
Debt and the Plano Debt, and to pay all closing fees and expenses in connection
with the Loan.  All of Borrower’s
Required Equity Contribution shall be made by way of capital contribution and
not loan.

“Business
Day” means 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 Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

“Calculation
Date” has the meaning specified in Section 7.11(b)(i).

“Calculation
Period” has the meaning specified in Section 7.11(b)(i).

“Cash
Collateralize” has the meaning specified in Section 2.03(g).

 “Change in Law” means the occurrence,
after the date of this Agreement, of any of the following: (a) the adoption or
taking effect of any law, rule, regulation or treaty, (b) any change in any
law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance
of any request, guideline or directive (whether or not having the force of law)
by any Governmental Authority.

“Change
of Control” means an event or series of events by which:

(a)           any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, but excluding any employee benefit plan

 3
 

 

 

of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of 25%
or more of the equity securities of the Borrower entitled to vote for members
of the board of directors or equivalent governing body of the Borrower on a
fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right);

(b)           during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of the Borrower cease to be composed of individuals (i) who were
members of that board or equivalent governing body on the first day of such
period, (ii) whose election or nomination to that board or equivalent governing
body was approved by individuals referred to in clause (i) above constituting
at the time of such election or nomination at least a majority of that board or
equivalent governing body or (iii) whose election or nomination to that board
or other equivalent governing body was approved by individuals referred to in
clauses (i) and (ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any individual
whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors);
or

(c)           any Person or two or more Persons
acting in concert shall have acquired by contract or otherwise, or shall have
entered into a contract or arrangement that, upon consummation thereof, will
result in its or their acquisition of the power to exercise, directly or
indirectly, a controlling influence over the management or policies of the
Borrower, or control over the equity securities of the Borrower entitled to
vote for members of the board of directors or equivalent governing body of the
Borrower on a fully-diluted basis (and taking into account all such securities
that such Person or group has the right to acquire pursuant to any option
right) representing 25% or more of the combined voting power of such securities.

“Closing Date” means the first date all the
conditions precedent in Section 4.01 are satisfied or waived in
accordance with Section 10.01.

“Code”
means the Internal Revenue Code of 1986.

“Commitment”
means, as to each Lender, its obligation to (a) make Committed Loans to the
Borrower pursuant to Section 2.01 and (b) purchase participations in L/C
Obligations, in an aggregate principal amount at any one time outstanding not
to exceed the amount set forth opposite such Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to

 4
 

 

 

which such Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

“Committed
Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by each of the Lenders pursuant to Section 2.01.

“Committed
Loan” means, singly and collectively, the initial advance under the Loan
pursuant to the Initial Borrowing and each further advance under the Loan made
pursuant to a Subsequent Advance, as provided in Section 2.01.

“Committed
Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of
Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A.

“Compliance
Certificate” means a certificate substantially in the form of Exhibit C.

“Contractual Obligation” means, as to any
Person, any provision of any security issued by such Person or of any
agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.  “Controlling”
and “Controlled” have meanings correlative thereto.

“Credit
Extension” means each of the following: (a) a Borrowing and (b) an L/C
Credit Extension.

“Cross-Default
Event” means the occurrence of either of the following:

(i) if
the Borrower or any Subsidiary fails to observe or perform any other agreement
or condition relating to any such Indebtedness or Guarantee or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event occurs of more than the Threshold Amount, the effect of which default or
other event is to cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a
trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid,
defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect
thereof to be demanded; or

(ii)
there occurs under any Swap Contract an Early Termination Date (as defined in
such Swap Contract) resulting from (A) any event of default under such Swap
Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as
defined in such Swap Contract) or (B) any Termination Event (as so defined)
under such Swap Contract as to which the Borrower or any Subsidiary is an
Affected Party (as so defined).

 5
 

 

 

“Debt
Service Coverage” has the meaning specified in Section 7.11(b)(i).

“Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

“Deemed
Rate of Interest” has the meaning specified in Section 7.11(b)(i).

“Default” means any event or condition that
constitutes an Event of Default or that, with the giving of any notice, the
passage of time, or both, would be an Event of Default.

“Default Cash Flow Sweep” has the meaning
specified in Section 2.05(d).

“Default Rate” means an interest rate equal to
the Base Rate plus 4% per annum.

“Defaulting Lender” means any Lender that (a)
has failed to fund any portion of the Committed Loans or participations in L/C
Obligations required to be funded by it hereunder within one Business Day of
the date required to be funded by it hereunder, (b) has otherwise failed to pay
over to the Administrative Agent or any other Lender any other amount required
to be paid by it hereunder within one Business Day of the date when due, unless
the subject of a good faith dispute, or (c) has been deemed insolvent or become
the subject of a bankruptcy or insolvency proceeding.

“Disposition”
or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by
any Person, including any sale, assignment, pledge, transfer or other disposal,
with or without recourse, of any notes or accounts receivable or any rights and
claims associated therewith.

“Dollar” and “$” mean lawful money of
the United States.

“Domestic Subsidiary” means any Subsidiary that
is organized under the laws of any political subdivision of the United States.

“Eligible
Assignee” means (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 and the L/C Issuer, 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 or any of the
Borrower’s Affiliates or Subsidiaries.

“Environmental
Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

 6
 

 

 

“Environmental Liability” means any liability,
contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of the Borrower,
any other Loan Party or any of their respective Subsidiaries directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

“Equity
Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the
warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests
in) such Person, all of the securities convertible into or exchangeable for
shares of capital stock of (or other ownership or profit interests in) such
Person or warrants, rights or options for the purchase or acquisition from such
Person of such shares (or such other interests), and all of the other ownership
or profit interests in such Person (including partnership, member or trust
interests therein), whether voting or nonvoting, and whether or not such
shares, warrants, options, rights or other interests are outstanding on any
date of determination.

“ERISA”
means the Employee Retirement Income Security Act of 1974.

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

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

“Eurodollar
Rate” means for any Interest Period with respect to a Eurodollar Rate Loan,
a rate per annum determined by the Administrative Agent pursuant to the
following formula:

 7
 

 

 

	
  Eurodollar Rate =

  	
   

  	
  Eurodollar Base
  Rate

  
	
   

  	
   

  	
  1.00 —
  Eurodollar Reserve Percentage

  

 

Where,

“Eurodollar Base
Rate” shall mean, with respect to any Eurodollar Rate Loan, the rate per
annum as determined on the basis of the offered rates for deposits in U.S.
dollars, for a period of time comparable to such Eurodollar Rate Loan which
appears on the Telerate page 3750 as of 11:00 a.m. London time on the day that
is two London Banking Days preceding the first day of such Eurodollar Rate
Loan; provided, however, if the rate described above does not appear on the
Telerate System on any applicable interest determination date, the Eurodollar
Base Rate shall be the rate (rounded upwards, if necessary, to the nearest one
hundred-thousandth of a percentage point), determined on the basis of the
offered rates for deposits in Dollars for a period of time comparable to such Eurodollar
Rate Loan which are offered by four major banks in the London interbank market
at approximately 11:00 a.m. London time, on the day that is two (2) London
Banking Days preceding the first day of such Eurodollar Rate Loan as selected
by Administrative Agent.  The principal
London office of each of the four major London banks will be requested to
provide a quotation of its Dollar deposit offered rate.  If at least two (2) such quotations are
provided, the rate for that date will be the arithmetic mean of the
quotations.  If fewer than two (2)
quotations are provided as requested, the rate for that date will be determined
on the basis of the rates quoted for loans in Dollars to leading European banks
for a period of time comparable to such Eurodollar Rate Loan offered by major
banks in New York City at approximately 11:00 a.m. New York City time, on the
day that is two (2) London Banking Days preceding the first of such Eurodollar
Rate Loan.  In the event that Administrative
Agent is unable to obtain any such quotation as provided above, it will be
deemed that the Eurodollar Base Rate pursuant to a Eurodollar Rate Loan cannot
be determined.

“Eurodollar Reserve
Percentage” means, for any day during any Interest Period, the reserve
percentage (expressed as a decimal, carried out to five decimal places) in
effect on such day, whether or not applicable to any Lender, under regulations
issued from time to time by the FRB for determining the maximum reserve
requirement (including any emergency, supplemental or other marginal reserve
requirement) with respect to Eurocurrency funding (currently referred to as
“Eurocurrency liabilities”).  The
Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be adjusted
automatically as of the effective date of any change in the Eurodollar Reserve
Percentage.

“Eurodollar
Rate Loan” means a Committed Loan that bears interest at a rate based on
the Eurodollar Rate.

“Event
of Default” has the meaning specified in Section 8.01.

“Excluded Taxes” means, with respect to the Administrative
Agent, any Lender, the L/C Issuer or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder, (a) taxes
imposed on or measured by its overall net income (however denominated), and
franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction

 8
 

 

 

(or
any political subdivision thereof) under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable Lending Office is located, (b) any branch
profits taxes imposed by the United States or any similar tax imposed by any
other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 10.13), any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
hereto (or designates a new Lending Office) or is attributable to such Foreign
Lender’s failure or inability (other than as a result of a Change in Law) to
comply with Section 3.01(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a
new Lending Office (or assignment), to receive additional amounts from the
Borrower with respect to such withholding tax pursuant to Section 3.01(a).

“Extended Maturity Date” has the meaning
specified in Section 2.14.

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

“Fee
Letter” means the letter agreement of even date among the Borrower and the
Administrative Agent.

“Foreign
Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes.  For purposes of this definition, the United
States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

“FRB”
means the Board of Governors of the Federal Reserve System of the United
States.

“Fund”
means 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.

“GAAP”
means generally accepted accounting principles in the United States 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 such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.

 9
 

 

 

“Governmental
Authority” means 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).

“Guarantee”
means, as to any Person, any (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the
“primary obligor”) in any manner, whether directly or indirectly, and including
any obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services
for the purpose of assuring the obligee in respect of such Indebtedness or
other obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation, or (iv) entered into for the purpose of
assuring in any other manner the obligee in respect of such Indebtedness or
other obligation of the payment or performance thereof or to protect such
obligee against loss in respect thereof (in whole or in part), or (b) any Lien
on any assets of such Person securing any Indebtedness or other obligation of
any other Person, whether or not such Indebtedness or other obligation is
assumed by such Person (or any right, contingent or otherwise, of any holder of
such Indebtedness to obtain any such Lien). 
The amount of any Guarantee shall be deemed to be an amount equal to the
stated or determinable amount of the related primary obligation, or portion
thereof, in respect of which such Guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a
corresponding meaning.

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law. 

“Implied
Debt Service” shall mean the aggregate of (a) as to the Borrowing Base
Level Debt,  the annual amount of
principal and interest payable on a hypothetical loan in an amount equal to the
Secured Mortgage Debt, based upon a thirty (30) year annual amortization schedule
and a per annum interest rate equal to the actual blended interest rates then
in effect for the Secured Mortgage Debt, plus (b) as to the Loan, the annual
amount of principal and interest payable on a hypothetical loan in an amount
equal to the Implied Loan Amount based upon a thirty (30) year annual
amortization schedule and a per annum 
interest rate equal the greater of or (ii) the 10-year Treasury Rate as
of the Calculation Date plus 1.50%, or (b) six percent (6.00%).

“Implied
Debt Service Coverage Ratio” shall mean as of any date of determination,
the ratio of the Net Operating Income for all Real Estate Projects for the most
recent fiscal quarter,

 10
 

 

 

annualized, to
Implied Debt Service; such calculation and results to be as verified by the
Administrative Agent.

“Implied
Loan Amount” shall mean a principal amount of the Loan which would generate
as of any date of determination an Implied Debt Service Coverage Ratio of 1.20
to 1.00, which Implied Loan Amount may be revised by the Administrative Agent,
as applicable,  to reflect additions,
removals and other adjustments to the Real Estate Projects since the most
recent date of determination, as applicable.

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

(a)           all obligations of such Person for
borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments;

(b)           all direct or contingent obligations
of such Person arising under letters of credit (including standby and
commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments;

(c)           net obligations of such Person under
any Swap Contract;

(d)           all obligations of such Person to pay
the deferred purchase price of property or services (other than trade accounts
payable in the ordinary course of business and, in each case, not past due for
more than sixty (60) days after the date on which such trade account payable
was created);

(e)           indebtedness (excluding prepaid
interest thereon) secured by a Lien on property owned or being purchased by
such Person (including indebtedness arising under conditional sales or other
title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

(f)            capital leases and Synthetic Lease
Obligations;

(g)           all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of
any Equity Interest in such Person or any other Person, valued, in the case of
a redeemable preferred interest, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; and

(h)           all Guarantees of such Person in
respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any
Person shall include the Indebtedness of any partnership or joint venture
(other than a joint venture that is itself a corporation or limited liability
company) in which such Person is a general partner or a joint venturer, unless
such Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation under any
Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date.  The amount of
any capital lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such
date.

 11

 

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

“Indemnitees”
has the meaning specified in Section 10.04(b).

“Information”
has the meaning specified in Section 10.07.

“Initial
Advance Amount” means $40,997,416.68.

“Initial
Borrowing” means that portion of the Loan in the original principal amount
of the Initial Advance Amount made by the Lenders as a single initial advance
under the Loan pursuant to the terms and conditions of Section 2.01(a).

“Initial
Maturity Date” means January 1, 2008.

“Interest
Payment Date” means the first Business Day of each calendar month and the
Maturity Date.

“Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on
the date such Eurodollar Rate Loan is disbursed or converted to or continued as
a Eurodollar Rate Loan and ending on the date one, two, three or six months
thereafter, as selected by the Borrower in its Committed Loan Notice; provided
that:

(i)            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 such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding
Business Day;

(ii)           any Interest Period 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 the calendar month at the end of
such Interest Period; and

(iii)          no Interest Period shall extend beyond
the Maturity Date.

“Internal Control Event” means a material
weakness in, or fraud that involves management or other employees who have a
significant role in, the Borrower’s internal controls over financial reporting,
in each case as described in the Securities Laws.

“Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
capital stock or other securities of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person and any arrangement pursuant to which the investor Guarantees
Indebtedness of such other Person, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that
constitute a business unit.  For purposes
of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in
the value of such Investment.

 12
 

 

 

“IP
Rights” has the meaning specified in Section 5.17.

“IRS”
means the United States Internal Revenue Service.

“ISP”
means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance).

“Issuer
Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by
the L/C Issuer and the Borrower (or any Subsidiary) or in favor the L/C Issuer
and relating to any such Letter of Credit.

“Laws”
means, 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.

“L/C
Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable
Percentage.

“L/C
Borrowing” means an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Committed Borrowing.

“L/C
Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount
thereof.

“L/C
Issuer” means Wachovia in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

“L/C
Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings.  For purposes of computing the amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14 of
the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

“Lender” has the meaning specified in the
introductory paragraph hereto.

“Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent.

 13
 

 

 

“Letter
of Credit” means any letter of credit issued hereunder.

“Letter
of Credit Application” means an application and agreement for the issuance
or amendment of a Letter of Credit in the form from time to time in use by the
L/C Issuer.

“Letter
of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next
preceding Business Day).

“Letter
of Credit Fee” has the meaning specified in Section 2.03(i).

“Letter
of Credit Sublimit” means an amount equal to Twenty Million Dollars
($20,000,000.00).  The Letter of Credit
Sublimit is part of, and not in addition to, the Aggregate Commitments.

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement in the nature of a security
interest of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any easement, right of way or other
encumbrance on title to real property, and any financing lease having
substantially the same economic effect as any of the foregoing).

“Loan”
means an extension of credit by a Lender to the Borrower under Article II
in the form of a Committed Loan.

“Loan
Documents” means this Agreement, each Note, each Issuer Document, and the
Fee Letter.

“Market
Cap Rate” has the meaning specified in Section 7.11(a)(ii).

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual
or contingent), condition (financial or otherwise) or prospects of the Borrower
or the Borrower and its Subsidiaries taken as a whole; (b) a material
impairment of the ability of the Borrower to perform its obligations under any
Loan Document to which it is a party; or (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against the Borrower of
any Loan Document to which it is a party.

“Maturity
Date” means the later of (a) the Initial Maturity Date, (b) if maturity is
extended pursuant to Section 2.14, the Extended Maturity Date as
determined pursuant to such Section, or (c) if the repayment of the Committed
Loans is extended pursuant to Section 2.07, the repayment date established by
such Section.

“Maximum Loan
Amount” mean the lesser of (a) or (b), as determined by the Administrative
Agent, where:

(a)           is the Borrowing Base,

(b)           is the Aggregate Commitments.

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“Minority
Owner” means, with respect to any Real Estate Project, any Person(s)
holding a minority ownership interest in any Project Level Entity formed on
account of a joint venture with the Borrower or any Subsidiary of the Borrower.

“Minority
Interest Debt” has the meaning specified in Section 7.11(a)(ii).

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

“Net
Equity Proceeds” means with respect to the sale of any
capital stock or other equity interest by the Borrower, the excess of (i) the
sum of the cash and cash equivalents received in connection with such sale over
(ii) the underwriting discounts and commissions, and other out-of-pocket
expenses, incurred by the Borrower in connection with such sale.

“Net
Operating Income” has the meaning specified in Section 7.11(b)(i).

“Note”
means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit B.

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, the Borrower arising under (i) any Loan Document or otherwise with
respect to any Loan or Letter of Credit and/or (ii) any Swap Contracts of the
Borrower to which a Lender or its Affiliate is a party, and with respect to all
of the foregoing, whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against the Borrower or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

“Off-Balance
Sheet Liabilities” means, with respect to any Person as of any date of
determination thereof, without duplication and to the extent not included as a
liability on the consolidated balance sheet of such Person and its Subsidiaries
in accordance with GAAP: (a) with respect to any asset securitization
transaction (including any accounts receivable purchase facility) (i) the
unrecovered investment of purchasers or transferees of assets so transferred,
and (ii) any other payment, recourse, repurchase, hold harmless, indemnity or
similar obligation of such Person or any of its Subsidiaries in respect of
assets transferred or payments made in respect thereof, other than limited
recourse provisions that are customary for transactions of such type and that
neither (x) have the effect of limiting the loss or credit risk of such
purchasers or transferees with respect to payment or performance by the
obligors of the assets so transferred nor (y) impair the characterization of
the transaction as a true sale under applicable Laws (including Debtor Relief
Laws); (b) the monetary obligations under any financing lease or so-called
“synthetic,” tax retention or off-balance sheet lease transaction which, upon
the application of any Debtor Relief Law to such Person or any of its
Subsidiaries, would be characterized as indebtedness; or (c) the monetary
obligations under any sale and leaseback transaction which does not create a
liability on the consolidated balance sheet of such Person and

 15
 

 

 

its Subsidiaries;
or (d) any other monetary obligation arising with respect to any other
transaction which (i) is characterized as indebtedness for tax purposes but not
for accounting purposes in accordance with GAAP or (ii) is the functional
equivalent of or takes the place of borrowing but which does not constitute a
liability on the consolidated balance sheet of such Person and its Subsidiaries
(for purposes of this clause (d), any transaction structured to provide tax
deductibility as interest expense of any dividend, coupon or other periodic
payment will be deemed to be the functional equivalent of a borrowing).

“Operating
Expenses” has the meaning specified in Section 7.11(b)(i).

“Organization
Documents” means, (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.

“Original
Appraisal” has the meaning specified in Section 7.11(a)(ii).

“Other
Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or under any other Loan Document or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or any other
Loan Document.

“Outstanding
Amount” means (i) with respect to Committed Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of Committed Loans occurring on such
date; and (ii) with respect to any L/C Obligations on any date, the amount of
such L/C Obligations on such date after giving effect to any L/C Credit
Extension occurring on such date and any other changes in the aggregate amount
of the L/C Obligations as of such date, including as a result of any
reimbursements by the Borrower of Unreimbursed Amounts.

“Participant”
has the meaning specified in Section 10.06(d).

“PBGC”
means the Pension Benefit Guaranty Corporation.

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

“Permitted
Payment” means any Shareholder’s Preferred Distribution.

 16
 

 

 

“Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

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

“Plano
Borrower” means ALLTX, LLC, a Delaware limited liability company, being a
Subsidiary of the Borrower.

 “Plano Credit Agreement” means that
certain existing Loan Agreement dated September 15, 2005 between the Borrower,
as borrower thereunder, and Wachovia, as lender thereunder, pursuant to which
Wachovia provided the Plano Borrower with acquisition equity financing of the
Plano Property.

“Plano
Debt” means the Indebtedness of the Plano Borrower to Wachovia pursuant to
the Plano Loan Documents, which Indebtedness has an outstanding balance of
[$5,556,347.50] as of the Closing Date.

“Plano
Loan Documents” means all instruments, documents, and agreements executed
and delivered by the Plano Borrower and any other Person in connection with the
Plano Debt, including, without limitation, the Plano Credit Agreement.

“Plano
Property” means that certain real property located in Plano, Texas improved
with a 229 unit apartment building, which property is owned by the Plano
Borrower.

“Platform”
has the meaning specified in Section 6.02.

“Project
Level Entity” means either (i) a wholly-owned Subsidiary of the Borrower or
(ii) an entity formed to own a real estate project on account of a joint
venture between the Borrower or a wholly-owned Subsidiary of the Borrower and a
Minority Owner, which entity is controlled directly or indirectly by the
Borrower or a wholly-owned Subsidiary of the Borrower.

“Real
Estate Project” means each of the real estate projects currently owned in
whole or in part by a Project Level Entity as described in Borrower’s
Prospectus, currently known as the Jacksonville Communities, the Portland/SLC
Communities, the Seattle Communities, the Plano Property, and any additional
real estate project subsequently owned in whole or in part by a Project Level Entity.

“Register”
has the meaning specified in Section 10.06(c).

“Registered
Public Accounting Firm” has the meaning specified in the Securities Laws
and shall be independent of the Borrower as prescribed by the Securities Laws.

“REIT”
means a “real estate investment trust” as such term is defined in Section 856
of the Code.

 17
 

 

 

“Related
Parties” means, 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.

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

“Request
for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice and (b) with respect
to an L/C Credit Extension, a Letter of Credit Application.

“Required
Lenders” means, as of any date of determination, at least two Lenders
having more than 50% of the Aggregate Commitments or, if the commitment of each
Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02, at least two
Lenders holding in the aggregate more than 50% of the Total Outstandings (with
the aggregate amount of each Lender’s risk participation and funded
participation in L/C Obligations being deemed “held” by such Lender for
purposes of this definition); provided that the Commitment of, and the
portion of the Total Outstandings held or deemed held by, any Defaulting Lender
shall be excluded for purposes of making a determination of Required Lenders.

“Responsible
Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of the Borrower.  Any document delivered hereunder that is
signed by a Responsible Officer of the Borrower shall be conclusively presumed
to have been authorized by all necessary corporate, partnership and/or other
action on the part of the Borrower and such Responsible Officer shall be
conclusively presumed to have acted on behalf of the Borrower.

“Restricted
Payment” means any dividend or other distribution (whether in cash,
securities or other property) other than a Permitted Payment with respect to
any capital stock or other Equity Interest of the Borrower or any Subsidiary,
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 capital stock
or other Equity Interest, or on account of any return of capital to the
Borrower’s stockholders, partners or members (or the equivalent Person
thereof).

“Sarbanes-Oxley”
means the Sarbanes-Oxley Act of 2002.

“SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

“Secured
Mortgage Debt” has the meaning specified in Section 7.11(a)(ii).

“Securities
Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles,
rules, standards and practices promulgated, approved or incorporated by the SEC
or the Public Company Accounting Oversight Board, as each of the foregoing may
be amended and in effect on any applicable date hereunder.

 18
 

 

 

“Shareholders’
Dividend” means a dividend on Borrower’s common stock, as described in the
Borrower’s Prospectus, which the Borrower may pay on account of Shareholders’
Equity in the form of common stock of Borrower, in accordance with GAAP and in
accordance with this Agreement, in a maximum amount of six percent (6%) per
annum until the Initial Borrowing has been repaid in full, and any
Shareholder’s Dividend after the Initial Borrowing has been repaid in full.

“Shareholders’
Equity” means, as of any date of determination, consolidated shareholders’
equity of the Borrower and its Subsidiaries as of that date determined in
accordance with GAAP.

“Shareholders’
Preferred Distribution” means the dividends, distributions or return of
capital which Borrower may pay on account of Shareholder’s Equity in the form
of preferred stock of Borrower, which the Borrower may pay and redeem as
described in the Borrower’s Prospectus.

“Subsequent
Borrowing” means each Committed Loan made by the Lenders pursuant to the
terms and conditions hereof subsequent to the repayment in full of the Initial
Borrowing as and when provided in Section 2.01(b).

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person.  Unless otherwise specified, all
references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a
Subsidiary or Subsidiaries of the Borrower.

“Swap
Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity
options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward bond or forward
bond price or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

“Swap
Termination Value” means, in respect of any one or more Swap Contracts,
after taking into account the effect of any legally enforceable netting
agreement relating to such Swap

 19
 

 

 

Contracts, (a) for
any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a), the
amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as
determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts (which may
include a Lender or any Affiliate of a Lender).

“Synthetic
Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an
agreement for the use or possession of property creating obligations that do
not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of
such Person (without regard to accounting treatment).

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable
thereto.

“Threshold
Amount” means $20,000,000.00.

“Total
Outstandings” means the aggregate Outstanding Amount of all Loans and all
L/C Obligations.

“Type”
means, with respect to a Committed Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

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

“United
States” and “U.S.” mean the United States of America.

“Unreimbursed
Amount” has the meaning specified in Section 2.03(c)(i).

“Updated
Appraisal” has the meaning specified in Section 7.11(a)(ii).

“Wachovia.”
means WACHOVIA BANK, NATIONAL ASSOCIATION and its successors.

1.02        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

 20
 

 

 

to any agreement, instrument
or other document (including any Organization Document) shall be construed as
referring to such 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.

1.03        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, 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 reasonable
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.

(c)           Consolidation of Variable Interest
Entities.  All references herein to
consolidated financial statements of the Borrower and its Subsidiaries or to
the determination of any amount

 21
 

 

 

for the Borrower
and its Subsidiaries on a consolidated basis or any similar reference shall, in
each case, be deemed to include each variable interest entity that the Borrower
is required to consolidate pursuant to FASB Interpretation No. 46 —
Consolidation of Variable Interest Entities: an interpretation of ARB No. 51
(January 2003) as if such variable interest entity were a Subsidiary as defined
herein.

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

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

1.06        Letter
of Credit Amounts.  Unless otherwise specified
herein, the amount of a Letter of Credit at any time shall be deemed to be the
stated amount of such Letter of Credit in effect at such time; provided,
however, that with respect to any Letter of Credit that, by its terms or
the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the maximum stated amount of such Letter of Credit
after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

ARTICLE
II.

THE COMMITMENTS AND CREDIT EXTENSIONS

2.01                        Committed
Loans.

(a)               Initial
Borrowing.  Subject to the terms and
conditions set forth herein, on the Closing Date each Lender severally agrees
to make an initial Committed Loan to the Borrower in the Initial Advance
Amount, as the Initial Borrowing hereunder. 
The Initial Borrowing shall be used by the Borrower towards the
satisfaction of the entire BCP Debt and the release of the Liens related thereto
and the refinancing of the Plano Debt. 
The Committed Loan under the Initial Borrowing may be a Base Rate Loan
or Eurodollar Rate Loan, as further provided herein.  The Borrower shall repay the Committed Loan
under the Initial Borrowing as and when provided in this Agreement; provided,
however, that notwithstanding any provision in this Agreement or any other Loan
Document to the contrary, there shall be no additional Availability hereunder
and the Lenders shall have no obligation to make any other or further Credit
Extensions hereunder until such time as the Borrower shall have first repaid in
full the entire amount of the Initial Borrowing.

(b)              Subsequent
Borrowing.  Subject to the terms and
conditions set forth herein, and upon the condition precedent that the entire
amount of the Committed Loan under the Initial Borrowing shall have first been
repaid in full to the satisfaction of the Administrative Agent, each Lender
thereafter severally agrees to make Committed Loans to the Borrower from time
to time, as Subsequent Borrowings on a revolving loan basis, subject at all
times to Availability, on any Business Day during the Availability Period, in
an

 22
 

 

 

aggregate
amount not to exceed at any time outstanding the amount of such Lender’s
Commitment; provided, however, that after giving effect to any
Committed Borrowing, (i) the Total Outstandings shall not exceed the Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans
of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations shall not exceed such Lender’s
Commitment.  Within the limits of each
Lender’s Commitment, and subject to the other terms and conditions hereof, and
subject at all times to Availability, the Borrower may borrow under this Section
2.01, prepay under Section 2.05, and reborrow under this Section
2.01.  Committed Loans may be Base
Rate Loans or Eurodollar Rate Loans, as further provided herein.  Each request for a Committed Loan shall
specify the proposed use of the proceeds thereof and shall be accompanied by a
Compliance Certificate and such other and further information respecting the
Real Estate Projects, the Property Level Entities, and other matters as the
Administrative Agent may specify from time to time in its reasonable
determination.

2.02                        Borrowings,
Conversions and Continuations of Committed Loans.

(a)           Each Committed Borrowing, each
conversion of Committed Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to
the Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to
the requested date of any Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base
Rate Committed Loans, and (ii) on the requested date of any Borrowing of Base
Rate Committed Loans; provided, however, that if the Borrower
wishes to request Eurodollar Rate Loans having an Interest Period other than
one, two, three or six months in duration as provided in the definition of
“Interest Period”, the applicable notice must be received by the Administrative
Agent not later than 11:00 a.m. four Business Days prior to the requested date
of such Borrowing, conversion or continuation, whereupon the Administrative
Agent shall give prompt notice to the Lenders of such request and determine
whether the requested Interest Period is acceptable to all of them.  Not later than 11:00 a.m., three Business
Days before the requested date of such Borrowing, conversion or continuation,
the Administrative Agent shall notify the Borrower (which notice may be by
telephone) whether or not the requested Interest Period has been consented to by
all the Lenders.  Each telephonic notice
by the Borrower pursuant to this Section 2.02(a) must be confirmed
promptly by delivery to the Administrative Agent of a written Committed Loan
Notice, appropriately completed and signed by a Responsible Officer of the
Borrower.  Each Borrowing of, conversion
to or continuation of Eurodollar Rate Loans shall be in a principal amount of
at least $250,000 or a whole multiple of $10,000 in excess thereof.  Except as provided in Sections 2.03(c)
and 2.04(c), each Borrowing of or conversion to Base Rate Committed
Loans shall be in a principal amount of $250,000 or a whole multiple of $10,000
in excess thereof.  Each Committed Loan
Notice (whether telephonic or written) shall specify (i) whether the Borrower
is requesting a Committed Borrowing, a conversion of Committed Loans from one
Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the
requested date of the Borrowing, conversion or continuation, as the case may be
(which shall be a Business Day), (iii) the principal amount of Committed Loans
to be borrowed, converted or continued, (iv) the Type of Committed Loans to be
borrowed or to which existing Committed Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto.  If the

 23
 

 

 

Borrower fails to
specify a Type of Committed Loan in a Committed Loan Notice or if the Borrower
fails to give a timely notice requesting a conversion or continuation, then the
applicable Committed Loans shall be made as a Eurodollar Rate Loan with an
Interest Period of one month, or as to any existing Committed Loan, continued
as a Eurodollar Rate Loan with the same Interest Period as the Existing
Committed Loan.  Any such automatic
conversion or continuation to Eurodollar Rate Loans shall be effective as of
the last day of the Interest Period then in effect with respect to the
applicable Eurodollar Rate Loans.  If the
Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar
Rate Loans in any such Committed Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one month.

(b)           Following receipt of a Committed Loan
Notice, the Administrative Agent shall promptly notify each Lender of the
amount of its Applicable Percentage of the applicable Committed Loans, and if
no timely notice of a conversion or continuation is provided by the Borrower,
the Administrative Agent shall notify each Lender of the details of any
automatic conversion to Eurodollar Rate Loans described in the preceding
subsection.  In the case of a Committed
Borrowing, each Lender shall make the amount of its Committed Loan available to
the Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the Business Day specified in the
applicable Committed Loan Notice.  Upon
satisfaction of the applicable conditions set forth in Section 4.02
(and, if such Borrowing is the initial Credit Extension, Section 4.01),
the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Wachovia with the amount
of such funds or (ii) wire transfer of such funds, in each case in accordance
with instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower; provided, however, that if, on the date
the Committed Loan Notice with respect to such Borrowing is given by the
Borrower, there are L/C Borrowings outstanding, then the proceeds of such
Borrowing, first, shall be applied to the payment in full of any such
L/C Borrowings, and second, shall be made available to the Borrower as
provided above.

(c)           Except as otherwise provided herein,
a Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan. 
During the existence of a Default, no Loans may be requested as,
converted to or continued as Eurodollar Rate Loans without the consent of the
Required Lenders.

(d)           The Administrative Agent shall
promptly notify the Borrower and the Lenders of the interest rate applicable to
any Interest Period for Eurodollar Rate Loans upon determination of such
interest rate.  At any time that Base
Rate Loans are outstanding, the Administrative Agent shall notify the Borrower
and the Lenders of any change in Wachovia’s prime rate used in determining the
Base Rate promptly following the public announcement of such change.

(e)           After giving effect to all Committed
Borrowings, all conversions of Committed Loans from one Type to the other, and
all continuations of Committed Loans as the same Type, there shall not be more
than six (6) Interest Periods in effect with respect to Committed Loans.

 24

 

 

2.03        Letters
of Credit.

(a)           The
Letter of Credit Commitment.

(i)            Subject to the terms and conditions
set forth herein, and upon the condition precedent that the entire amount of
the Committed Loan under the Initial Borrowing shall have first been repaid in
full to the satisfaction of the Administrative Agent, (A) the L/C Issuer
thereafter agrees, in reliance upon the agreements of the Lenders set forth in
this Section 2.03, (1) from time to time on any Business Day during the
period from the Closing Date until the Letter of Credit Expiration Date, to
issue Letters of Credit for the account of the Borrower or its Subsidiaries,
and to amend Letters of Credit previously issued by it, in accordance with
subsection (b) below, and (2) to honor drawings under the Letters of Credit;
and (B) the Lenders severally agree to participate in Letters of Credit issued
for the account of the Borrower or its Subsidiaries or any Project Level Entity
and any drawings thereunder; provided that after giving effect to any
L/C Credit Extension with respect to any Letter of Credit, (x) the Total
Outstandings shall not exceed the Aggregate Commitments, (y) the aggregate
Outstanding Amount of the Committed Loans of any Lender, plus such
Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations
shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of
the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Borrower for the issuance
or amendment of a Letter of Credit shall be deemed to be a representation by
the Borrower that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.

(ii)           The L/C Issuer shall not issue any
Letter of Credit, if:

(A)          the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of
issuance, unless the Required Lenders have approved such expiry date; or

(B)           the expiry date of such requested
Letter of Credit would occur after the Letter of Credit Expiration Date, unless
all the Lenders have approved such expiry date.

(iii)          The L/C Issuer shall not be under any
obligation to issue any Letter of Credit if:

(A)          any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain the L/C Issuer from issuing such Letter of Credit, or any Law
applicable to the L/C Issuer or any request or directive (whether or not having
the force of law) from any Governmental Authority with jurisdiction over the
L/C Issuer shall prohibit, or

 25
 

 

 

request that the L/C Issuer refrain from, the issuance
of letters of credit generally or such Letter of Credit in particular or shall
impose upon the L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the L/C Issuer in good faith deems
material to it;

(B)           the issuance of such Letter of Credit
would violate one or more policies of the L/C Issuer;

(C)           except as otherwise reasonably agreed
by the Administrative Agent and the L/C Issuer, such Letter of Credit is in an
initial stated amount less than $100,000;

(D)          such Letter of Credit is to be
denominated in a currency other than Dollars;

(E)           such Letter of Credit contains any
provisions for automatic reinstatement of the stated amount after any drawing
thereunder; or

(F)           a default of any Lender’s obligations
to fund under Section 2.03(c) exists or any Lender is at such time a
Defaulting Lender hereunder, unless the L/C Issuer has entered into
satisfactory arrangements with the Borrower or such Lender to eliminate the L/C
Issuer’s risk with respect to such Lender.

(iv)          The L/C Issuer shall not amend any
Letter of Credit if the L/C Issuer would not be permitted at such time to issue
such Letter of Credit in its amended form under the terms hereof.

(v)           The L/C Issuer shall be under no
obligation to amend any Letter of Credit if (A) the L/C Issuer would have no
obligation at such time to issue such Letter of Credit in its amended form under
the terms hereof, or (B) the beneficiary of such Letter of Credit does not
accept the proposed amendment to such Letter of Credit.

(vi)          The L/C Issuer shall act on behalf of
the Lenders with respect to any Letters of Credit issued by it and the documents
associated therewith, and the L/C Issuer shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Article IX
with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article IX included the L/C
Issuer with respect to such acts or omissions, and (B) as additionally provided
herein with respect to the L/C Issuer.

(b)           Procedures
for Issuance and Amendment of Letters of Credit.

(i)            Each Letter of Credit shall be
issued or amended, as the case may be, upon the request of the Borrower
delivered to the L/C Issuer (with a copy to the Administrative

 26
 

 

 

Agent) in the form of a
Letter of Credit Application, appropriately completed and signed by a
Responsible Officer of the Borrower. 
Such Letter of Credit Application must be received by the L/C Issuer and
the Administrative Agent not later than 11:00 a.m. at least two Business Days
(or such later date and time as the Administrative Agent and the L/C Issuer may
agree in a particular instance in their reasonable discretion) prior to the
proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify
in form and detail satisfactory to the L/C Issuer: (A) the proposed issuance
date of the requested Letter of Credit (which shall be a Business Day); (B) the
amount thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the L/C Issuer may require. 
In the case of a request for an amendment of any outstanding Letter of
Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the
proposed date of amendment thereof (which shall be a Business Day); (C) the
nature of the proposed amendment; and (D) such other matters as the L/C Issuer
may reasonably require.  Additionally,
the Borrower shall furnish to the L/C Issuer and the Administrative
Agent such other documents and information pertaining to such requested
Letter of Credit issuance or amendment, including any Issuer Documents, as the
L/C Issuer or the Administrative Agent may reasonably require.

(ii)           Promptly after receipt of any Letter
of Credit Application, the L/C Issuer will confirm with the Administrative
Agent (by telephone or in writing) that the Administrative Agent has received a
copy of such Letter of Credit Application from the Borrower and, if not, the
L/C Issuer will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written
notice from any Lender, the Administrative Agent or any Loan Party, at least
one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained
in Article IV shall not then be satisfied, then, subject to the terms
and conditions hereof, the L/C Issuer shall, on the requested date, issue a
Letter of Credit for the account of the Borrower (or the applicable Subsidiary)
or enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in
such Letter of Credit in an amount equal to the product of such Lender’s
Applicable Percentage times the amount of such Letter of Credit.

(iii)          Promptly after its delivery of any
Letter of Credit or any amendment to a Letter of Credit to an advising bank
with respect thereto or to the beneficiary thereof, the L/C Issuer will also
deliver to the Borrower and the Administrative Agent a true and complete copy
of such Letter of Credit or amendment.

 27
 

 

 

(c)           Drawings
and Reimbursements; Funding of Participations.

(i)            Upon receipt from the beneficiary of
any Letter of Credit of any notice of a drawing under such Letter of Credit,
the L/C Issuer shall notify the Borrower and the Administrative Agent
thereof.  Not later than 11:00 a.m. on
the date of any payment by the L/C Issuer under a Letter of Credit (each such
date, an “Honor Date”), the Borrower shall reimburse the L/C Issuer
through the Administrative Agent in an amount equal to the amount of such
drawing.  If the Borrower fails to so
reimburse the L/C Issuer by such time, the Administrative Agent shall promptly
notify each Lender of the Honor Date, the amount of the unreimbursed drawing
(the “Unreimbursed Amount”), and the amount of such Lender’s Applicable
Percentage thereof.  In such event, the
Borrower shall be deemed to have requested a Committed Borrowing of Eurodollar
Rate Loans to be disbursed on the Honor Date in an amount equal to the
Unreimbursed Amount, without regard to the minimum and multiples specified in Section
2.02 for the principal amount of Eurodollar Rate Loans, but subject to the
amount of the unutilized portion of the Aggregate Commitments and the
conditions set forth in Section 4.02 (other than the delivery of a
Committed Loan Notice).  Any notice given
by the L/C Issuer or the Administrative Agent pursuant to this Section
2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided
that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

(ii)           Each Lender shall upon any notice
pursuant to Section 2.03(c)(i) make funds available to the
Administrative Agent for the account of the L/C Issuer at the Administrative
Agent’s Office in an amount equal to its Applicable Percentage of the
Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in
such notice by the Administrative Agent, whereupon, subject to the provisions
of Section 2.03(c)(iii), each Lender that so makes funds available shall
be deemed to have made a Base Rate Committed Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

(iii)          With respect to any Unreimbursed
Amount that is not fully refinanced by a Committed Borrowing of Base Rate Loans
because the conditions set forth in Section 4.02 cannot be satisfied or
for any other reason, the Borrower shall be deemed to have incurred from the
L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is
not so refinanced, which L/C Borrowing shall be due and payable on demand (together
with interest) and shall bear interest at the Default Rate.  In such event, each Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such
L/C Borrowing and shall constitute an L/C Advance from such Lender in
satisfaction of its participation obligation under this Section 2.03.

(iv)          Until each Lender funds its Committed
Loan or L/C Advance pursuant to this Section 2.03(c) to reimburse the
L/C Issuer for any amount drawn under any Letter of Credit, interest in respect
of such Lender’s Applicable Percentage of such amount shall be solely for the
account of the L/C Issuer.

 28
 

 

 

(v)           Each Lender’s obligation to make
Committed Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn
under Letters of Credit, as contemplated by this Section 2.03(c), shall
be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, the Borrower or any other
Person for any reason whatsoever; (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Committed Loans pursuant to this Section 2.03(c)
is subject to the conditions set forth in Section 4.02 (other than
delivery by the Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of
Credit, together with interest as provided herein.

(vi)          If any Lender fails to make available
to the Administrative Agent for the account of the L/C Issuer any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.03(c) by the time specified in Section 2.03(c)(ii), the
L/C Issuer shall be entitled to recover from such Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the L/C Issuer at a rate per annum equal to the
greater of the Federal Funds Rate and a rate determined by the L/C Issuer in
accordance with banking industry rules on interbank compensation.  A certificate of the L/C Issuer submitted to
any Lender (through the Administrative Agent) with respect to any amounts owing
under this clause (vi) shall be conclusive absent manifest error.

(d)           Repayment
of Participations.

(i)            At any time after the L/C Issuer has
made a payment under any Letter of Credit and has received from any Lender such
Lender’s L/C Advance in respect of such payment in accordance with Section
2.03(c), if the Administrative Agent receives for the account of the L/C
Issuer any payment in respect of the related Unreimbursed Amount or interest
thereon (whether directly from the Borrower or otherwise, including proceeds of
Cash Collateral applied thereto by the Administrative Agent), the
Administrative Agent will distribute to such Lender its Applicable Percentage
thereof (appropriately adjusted, in the case of interest payments, to reflect
the period of time during which such Lender’s L/C Advance was outstanding) in
the same funds as those received by the Administrative Agent.

(ii)           If any payment received by the
Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(i) is required to be returned under any of the circumstances
described in Section 10.05 (including pursuant to any settlement entered
into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Applicable
Percentage thereof on demand of the Administrative Agent, plus interest thereon
from the date of such demand to the date such amount is returned by such
Lender, at a rate per annum equal to the Federal Funds

 29
 

 

 

Rate from time to time in
effect.  The obligations of the Lenders
under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

(e)           Obligations Absolute.  The
obligation of the Borrower to reimburse the L/C Issuer for each drawing under
each Letter of Credit and to repay each L/C Borrowing shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with
the terms of this Agreement under all circumstances, including the following:

(i)            any lack of validity or
enforceability of such Letter of Credit, this Agreement, or any other Loan
Document;

(ii)           the existence of any claim,
counterclaim, setoff, defense or other right that the Borrower or any
Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the L/C Issuer or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by such
Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction;

(iii)          any draft, demand, certificate or
other document presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under such Letter of Credit;

(iv)          any payment by the L/C Issuer under
such Letter of Credit against presentation of a draft or certificate that does
not strictly comply with the terms of such Letter of Credit; or any payment
made by the L/C Issuer under such Letter of Credit to any Person purporting to
be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including any arising
in connection with any proceeding under any Debtor Relief Law; or

(v)           any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing, including any other
circumstance that might otherwise constitute a defense available to, or a
discharge of, the Borrower or any Subsidiary.

The
Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the Borrower
will immediately notify the L/C Issuer. 
The Borrower shall be conclusively deemed to have waived any such claim
against the L/C Issuer and its correspondents unless such notice is given as
aforesaid.

(f)            Role of L/C Issuer.  Each
Lender and the Borrower agree that, in paying any drawing under a Letter of
Credit, the L/C Issuer shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by
the Letter of Credit) or to ascertain or inquire as to the validity or accuracy
of any such document or the authority of the Person executing or delivering any
such document.  None of the L/C Issuer,
the Administrative Agent, any of their respective Related Parties nor any
correspondent, participant

 30
 

 

 

or assignee of the
L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the
Required Lenders, as applicable; (ii) any action taken or omitted in the absence
of gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Issuer Document. 
The Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not,
preclude the Borrower’s pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable or responsible for
any of the matters described in clauses (i) through (v) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the L/C Issuer, and the
L/C Issuer may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by the L/C
Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure
to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the
foregoing, the L/C Issuer may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.

(g)           Cash Collateral.  Upon the request of the Administrative Agent,
(i) if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if,
as of the Letter of Credit Expiration Date, any L/C Obligation for any reason
remains outstanding, the Borrower shall, in each case, immediately Cash
Collateralize the then Outstanding Amount of all L/C Obligations.  Sections 2.05 and 8.02(c) set
forth certain additional requirements to deliver Cash Collateral
hereunder.  For purposes of this Section
2.03, Section 2.05 and Section
8.02(c), “Cash Collateralize” means to pledge and deposit with or
deliver to the Administrative Agent, for the benefit of the L/C Issuer and the
Lenders, as collateral for the L/C Obligations, cash or deposit account
balances pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the L/C Issuer (which documents are hereby consented
to by the Lenders).  Derivatives of such
term have corresponding meanings.  The
Borrower hereby grants to the Administrative Agent, for the benefit of the L/C
Issuer and the Lenders, a security interest in all such cash, deposit accounts
and all balances therein and all proceeds of the foregoing.  Cash Collateral shall be maintained in
blocked, non-interest bearing deposit accounts at Wachovia.

(h)           Applicability of ISP and UCP.  Unless
otherwise expressly agreed by the L/C Issuer and the Borrower when a Letter of
Credit is issued, (i) the rules of the ISP shall apply to each standby Letter
of Credit, and (ii) the rules of the Uniform Customs and Practice for
Documentary Credits, as most recently published by the International Chamber of
Commerce at the time of issuance shall apply to each commercial Letter of Credit.

 31
 

 

 

(i)            Letter of Credit Fees.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Applicable
Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable
Rate for Eurodollar Rate Loans times the daily amount available to be
drawn under such Letter of Credit.  For
purposes of computing the daily amount available to be drawn under any Letter
of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06. 
Letter of Credit Fees shall be (i) computed on a quarterly basis in
arrears and (ii) due and payable on the first Business Day after the end of
each March, June, September and December, commencing with the first such date
to occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand. 
If there is any change in the Applicable Rate during any quarter, the
daily amount available to be drawn under each Letter of Credit shall be
computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary
contained herein, upon the request of the Required Lenders, while any Event of
Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

(j)            Documentary and Processing
Charges Payable to L/C Issuer.  The Borrower shall pay directly to
the L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to letters of credit as from time to time in effect to
the extent charged to similarly situated customers of the L/C Issuer.  Such customary fees and standard costs and
charges are due and payable on demand and are nonrefundable.

(k)           Conflict with Issuer Documents.  In the event of any conflict between the
terms hereof and the terms of any Issuer Document, the terms hereof shall
control.

(l)            Letters of Credit Issued for
Subsidiaries.  Notwithstanding that a
Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, the Borrower shall be
obligated to reimburse the L/C Issuer hereunder for any and all drawings under
such Letter of Credit.  The Borrower
hereby acknowledges that the issuance of Letters of Credit for the account of
Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s
business derives substantial benefits from the businesses of such Subsidiaries.

2.04        Intentionally
Omitted.

2.05        Prepayments.

(a)           The Borrower may, upon notice to the
Administrative Agent, at any time or from time to time voluntarily prepay
Committed Loans in whole or in part without premium or penalty; provided
that such notice must be received by the Administrative Agent not later than
11:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Committed
Loans.  Each such notice shall specify
the date and amount of such prepayment and the Type(s) of Committed Loans to be
prepaid.  The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of the
amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.  Any

 32
 

 

 

prepayment of a
Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount
prepaid, together with any additional amounts required pursuant to Section
3.05.  Each such prepayment shall be
applied to the Committed Loans of the Lenders in accordance with their respective
Applicable Percentages.

(b)           From and after the date on which the
Initial Borrowing shall be repaid in full, all Net Equity Proceeds realized
from time to time on account of Borrower’s Equity Offering, after (i) any
Shareholders’ Dividend and/or Shareholders’ Preferred Distribution declared by
Borrower consistent with Borrower’s Prospectus, (ii) any Asset Management Fee
then due and payable, (iii) reasonable operating and other reserves maintained
by the Borrower in accordance with GAAP, and (v) amounts necessary to be paid
by the Borrower to continue to meet the requirements for qualification and
taxation as a REIT under the Code, shall be applied, on the first Business Day
of each month, in reduction of the outstanding principal balance of the Committed
Loans (with any such application to be in such order and manner as the
Administrative Agent in its sole discretion may determine appropriate), all of
the foregoing as reasonably determined by the Administrative Agent and, with
respect to item (v), in consultation with Borrower’s REIT counsel.

(c)           If for any reason the Total
Outstandings at any time exceed the Maximum Loan Amount, the Borrower shall
immediately prepay Loans and/or Cash Collateralize the L/C Obligations in an
aggregate amount equal to such excess; provided, however, that
the Borrower shall not be required to Cash Collateralize the L/C Obligations
pursuant to this Section 2.05(c) unless after the prepayment in full of
the Loans the Total Outstandings exceed the Maximum Loan Amount then in effect.

(d)           Upon the occurrence of any Event of
Default, and without limiting any other rights and remedies of the
Administrative Agent and/or any Lender on account thereof, the Borrower
immediately shall cause all Borrower Net Cash Flow arising thereafter to be
paid to the Administrative Agent and applied in reduction of the aggregate
outstanding balance of the Committed Loans (with any such application to be in
such order and manner as the Administrative Agent in its sole discretion may
determine appropriate) (the “Default Cash Flow Sweep”).   All Borrower Net Cash Flow pursuant to the
Default Cash Flow Sweep shall be payable at least monthly, together with any
and all financial materials and other calculations as the Administrative Agent
may request from time to time.

2.06        Termination
or Reduction of Commitments.  The Borrower may, upon
notice to the Administrative Agent, terminate the Aggregate Commitments, or
from time to time permanently reduce the Aggregate Commitments; provided
that (i) any such notice shall be received by the Administrative Agent not
later than 11:00 a.m. five Business Days prior to the date of termination or
reduction, (ii) any such partial reduction shall be in an minimum amount of
$10,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the
Borrower shall not terminate or reduce the Aggregate Commitments if, after
giving effect thereto and to any concurrent prepayments hereunder, the Total
Outstandings would exceed the Aggregate Commitments, (iv) if, after giving effect
to any reduction of the Aggregate Commitments, the Letter of Credit Sublimit
exceeds the amount of the Aggregate Commitments, such Sublimit shall be
automatically reduced by the amount of such excess, and (v) in no event shall a
reduction by the Borrower reduce the Aggregate Commitments to Ten Million
Dollars

 33
 

 

 

($10,000,000.00)
or less (except for a termination of all the Aggregate Commitments).  The Administrative Agent will promptly notify
the Lenders of any such notice of termination or reduction of the Aggregate
Commitments.  Any reduction of the
Aggregate Commitments shall be applied to the Commitment of each Lender
according to its Applicable Percentage. 
All fees accrued until the effective date of any termination of the
Aggregate Commitments shall be paid on the effective date of such termination.

2.07        Repayment of Loans.

(a)           Unless otherwise provided herein, the
Borrower shall repay to the Lenders on the Maturity Date the aggregate
principal amount of Committed Loans outstanding on such date.

(b)           With respect to each Committed Loan
made as a Subsequent Borrowing, the Borrower shall repay to the Lenders on that
date which is ninety (90) calendar days from the date that the subject
Committed Loan was made (and if such date is not a Business Day, then on
the  next preceding Business Day) the
aggregate principal amount of each such Committed Loan outstanding on such
date, as determined by Administrative Agent.

(c)           If the Borrower is unable to repay
any Committed Loan as provided in Section 2.07(b) above, then so long as the
Borrower has provided the Administrative Agent with at least five (5) Business
Days’ prior written notice of its inability so to repay any such Committed Loan
as and when aforesaid, then each of the following shall be applicable:

(i)            No Default shall be deemed to have
occurred on account of the Borrower’s failure to repay the subject Committed
Loan pursuant to Section 2.07(b) above;

(ii)           Notwithstanding any provision in this
Agreement or any other Loan Document to the contrary, there shall be no
additional Availability hereunder and the Lenders shall have no obligation to
make any other or further Credit Extensions hereunder;

(iii)          The entire aggregate principal amount
of all Committed Loans under each Subsequent Borrowing (and not just the
subject Committed Loan) shall be due and payable in full on that date which is
six (6) calendar months from the date that the subject Committed Loan was to
have been repaid pursuant to Section 2.07(b) above, as determined  by the Administrative Agent;

(iv)          The Administrative Agent may require
that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

(v)           The Borrower’s right to request an
extension of the Initial Maturity Date as set forth in Section 2.14 shall be
deemed null and void.

(d)           If, (A) on or before June 1, 2007,
the Borrower, despite its diligent efforts, is unable to extend the July 1,
2007 Termination Date under the Borrower’s Equity Offering to a date beyond the
Initial Maturity Date, then so long as (x) the Borrower has provided the
Administrative Agent with at least five (5) Business Days’ prior written notice
of its inability so to extend such Termination Date as aforesaid and (y) the
Borrower continues to use its diligent

 34
 

 

 

efforts to seek
all necessary approvals to extend such Termination Date, or (B) a Cross-Default
Event in excess of the Threshold Amount occurs, then, in either case (A) or (B)
each of the following shall be applicable:

(i)            Notwithstanding any provision in this
Agreement or any other Loan Document to the contrary, there shall be no
additional Availability hereunder and the Lenders shall have no obligation to
make any other or further Credit Extensions hereunder unless and until said
Termination Date has been extended to a date not earlier than then-effective
Maturity Date;

(ii)           The Borrower shall have the option,
exercised in the written notice provided in the notice provided in this Section
2.07(d), to have the entire aggregate principal amount of all Committed Loans
under the Subsequent Borrowing be due and payable in full on the Initial
Maturity Date in lieu of the date that each Committed Loan was to have been
repaid pursuant to Section 2.07(b) above, subject, however, to extension to the
Extended Maturity Date when and if said Termination Date is been extended to a
date not earlier than the Extended Maturity Date; and

(iii)          The Borrower’s right to request an
extension of the Initial Maturity Date as set forth in Section 2.14 shall be
deemed null and void unless and until said Termination Date has been extended
to a date not earlier than the Extended Maturity Date.

Notwithstanding
anything to the contrary herein, neither Borrower’s failure to obtain an
extension of the Terminate Date pursuant to this Section 2.07(d) nor the
occurrence of a Cross-Default Event shall constitute a Default or Event of
Default under this Agreement, and the remedies set forth in Section 2.07(d)
shall constitute Lender’s and Agent’s sole and exclusive remedies against
Borrower in connection with such failure and/or Cross-Default Event.

2.08        Interest.

(a)           Subject to the provisions of
subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Eurodollar Rate for such Interest Period plus the
Applicable Rate and (ii) each Base Rate Committed Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at
a rate per annum equal to the Base Rate plus the Applicable Rate.

(b)           (i)            If
any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or
otherwise, such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws.

(ii)           If any amount (other than principal
of any Loan) payable by the Borrower under any Loan Document is not paid when
due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, then upon the request of the Required
Lenders, such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws.

 35

 

 

(iii)          Upon the request of the Required
Lenders, while any Event of Default exists, the Borrower shall pay interest on
the principal amount of all outstanding Obligations hereunder at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

(iv)          Accrued and unpaid interest on past
due amounts (including interest on past due interest) shall be due and payable
upon demand.

(c)           Interest on each Loan shall be due
and payable in arrears on each Interest Payment Date applicable thereto and at
such other times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

2.09        Fees.  In
addition to certain fees described in subsections (i) and (j) of Section
2.03:

(a)           Commitment Fee.  The
Borrower shall pay to the Administrative Agent the commitment fee agreed to
between the Borrower and the Administrative Agent in the Fee Letter.

(b)           Other Fees.  The
Borrower shall pay to the Arranger and the Administrative Agent for their own
respective accounts fees in the amounts and at the times specified in the Fee
Letter.  Such fees shall be fully earned
when paid and shall not be refundable for any reason whatsoever.

(ii)           The Borrower shall pay to the Lenders
such fees as shall have been separately agreed upon in writing in the Fee
Letter in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

2.10        Computation
of Interest and Fees.  All computations of fees and interest shall
be made on the basis of a 360-day year and actual days elapsed (which results
in more fees or interest, as applicable, being paid than if computed on the
basis of a 365-day year).  Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.12(a), bear interest for
one day.  Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive
and binding for all purposes, absent manifest error.

2.11        Evidence
of Debt.

(a)           The Credit Extensions made by each
Lender shall be evidenced by one or more accounts or records maintained by such
Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrower and
the interest and payments thereon.  Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Obligations. 
In the event of any conflict between the accounts and records maintained
by any Lender and the accounts and records of the

 36
 

 

 

Administrative
Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through
the Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a Note, which shall evidence such Lender’s
Loans in addition to such accounts or records. 
Each Lender may attach schedules to its Note and endorse thereon the
date, Type (if applicable), amount and maturity of its Loans and payments with
respect thereto.

(b)           In addition to the accounts and
records referred to in subsection (a), each Lender and the Administrative Agent
shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters
of Credit.  In the event of any conflict
between the accounts and records maintained by the Administrative Agent and the
accounts and records of any Lender in respect of such matters, the accounts and
records of the Administrative Agent shall control in the absence of manifest
error.

2.12        Payments
Generally; Administrative Agent’s Clawback.

(a)           General.  All payments to be made by the Borrower shall
be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Borrower hereunder
shall be made to the Administrative Agent, for the account of the respective
Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein.  The Administrative
Agent will promptly distribute to each Lender its Applicable Percentage (or
other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

(b)           (i) 
Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Committed
Borrowing of Eurodollar Rate Loans (or, in the case of any Committed Borrowing
of Base Rate Loans, prior to 12:00 noon on the date of such Committed
Borrowing) that such Lender will not make available to the Administrative Agent
such Lender’s share of such Committed Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Committed Borrowing
of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount.  In such event, if a Lender has
not in fact made its share of the applicable Committed Borrowing available to
the Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount in immediately available funds with interest thereon, for each day from
and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) 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

 37
 

 

 

Administrative
Agent in accordance with banking industry rules on interbank compensation and
(B) in the case of a payment to be made by the Borrower, the interest rate
applicable to Eurodollar Rate Loans.  If
the Borrower and such Lender shall pay such interest to the Administrative
Agent for the same or an overlapping period, the Administrative Agent shall
promptly remit to the Borrower the amount of such interest paid by the Borrower
for such period.  If such Lender pays its
share of the applicable Committed Borrowing to the Administrative Agent, then
the amount so paid shall constitute such Lender’s Committed Loan included in
such Committed Borrowing.  Any payment by
the Borrower shall be without prejudice to any claim the Borrower may have
against a Lender that shall have failed to make such payment to the
Administrative Agent.

(ii)           Payments by Borrower; Presumptions
by Administrative Agent.  Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders or the L/C Issuer hereunder that the Borrower will not make such
payment, the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the L/C Issuer, as the case may be,
the amount due.  In such event, if the
Borrower has not in fact made such payment, then each of the Lenders or the L/C
Issuer, as the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Lender or the L/C
Issuer, in immediately available funds with interest thereon, for each day from
and including the date such amount is distributed to it to but excluding the
date of payment to the Administrative Agent, at the greater of the Federal
Funds Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation.

A
notice of the Administrative Agent to any Lender or the Borrower with respect
to any amount owing under this subsection (b) shall be conclusive, absent
manifest error.

(c)           Failure to Satisfy Conditions
Precedent.  If any Lender makes
available to the Administrative Agent funds for any Loan to be made by such
Lender as provided in the foregoing provisions of this Article II, and
such funds are not made available to the Borrower by the Administrative Agent
because the conditions to the applicable Credit Extension set forth in Article
IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

(d)           Obligations of Lenders Several.  The obligations of the Lenders hereunder to
make Committed Loans, to fund participations in Letters of Credit, and to make
payments pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make any
Committed Loan, to fund any such participation or to make any payment under Section
10.04(c) on any date required hereunder shall not relieve any other Lender
of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Committed Loan,
to purchase its participation or to make its payment under Section 10.04(c).

(e)           Funding Source.  Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any

 38
 

 

 

Lender that it has
obtained or will obtain the funds for any Loan in any particular place or
manner.

2.13        Sharing
of Payments by Lenders.  If any Lender shall, by exercising any right
of setoff or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of the Committed Loans made by it or the
participations in L/C Obligations resulting in such Lender’s receiving payment
of a proportion of the aggregate amount of such Committed Loans or
participations and accrued interest thereon greater than its pro  rata
share thereof as provided herein, then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b)
purchase (for cash at face value) participations in the Committed Loans and
subparticipations in L/C Obligations of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Committed Loans and
other amounts owing them, provided that:

(i)            if any such participations or
subparticipations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest; and

(ii)           the provisions of this Section shall
not be construed to apply to (x) any payment made by the Borrower pursuant to
and in accordance with the express terms of this Agreement or (y) any payment
obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Committed Loans or subparticipations in L/C
Obligations to any assignee or participant, other than to the Borrower or any
Subsidiary thereof (as to which the provisions of this Section shall apply).

The
Borrower consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant
to the foregoing arrangements may exercise against the Borrower rights of
setoff and counterclaim with respect to such participation as fully as if such
Lender were a direct creditor of the Borrower in the amount of such
participation.

2.14         Extension of Maturity Date.

(a)           Requests for
Extension.  The Administrative
Agent and the Lenders shall grant a request by Borrower to extend the Initial
Maturity Date under this Agreement to July 1, 2008 (the “Extended Maturity
Date”), upon and subject to the following terms and conditions:

(b)           Basic Conditions.  Unless otherwise agreed by Administrative
Agent in writing:

(i)            Borrower
shall request the extension by written notice to Administrative Agent not more
than sixty (60) days, and not less than thirty (30) days, prior to the Maturity
Date.

 39
 

 

 

(ii)           At
the time of the request, and at the time of the extension, no Default or Event of Default shall have
occurred and be continuing on the date of such extension and after giving
effect thereto.

(iii)          The
then current financial statements regarding Borrower and all other financial
statements and other information as may be required under the Loan Documents
regarding Borrower and its Subsidiaries shall have been submitted promptly to
Administrative Agent.

(iv)          Whether
or not the extension becomes effective, Borrower shall pay all out-of-pocket
costs and expenses reasonably incurred by Administrative Agent and Lenders in
connection with the proposed extension (pre- and post-closing), including,
without limitation, reasonable legal fees; all such reasonable costs and
expenses incurred up to the time of Administrative Agent’s written agreement to
the extension shall be due and payable prior to Administrative Agent’s execution
of that agreement (or if the proposed extension does not become effective, then
upon demand by Administrative Agent), and any future failure to pay such
amounts shall constitute a Default under the Loan Documents.

(v)           All
applicable regulatory requirements shall have been satisfied with respect to
the extension.

(vi)          Not
later than the Initial Maturity Date, Borrower shall have paid to
Administrative Agent an extension fee in an amount equal to fifteen (15) basis
points of the Aggregate Commitments respecting the Loan.

(vii)   Not
later than the Initial Maturity Date, 
the July 1, 2007 Termination Date under the Borrower’s Equity Offering
shall have been extended to a date beyond the Extended Maturity Date.

(viii)        At
the time of such extension, the Borrower shall be in compliance with the AD/AV
Ratio set forth in Section 7.11(a) 
based on an updated Aggregate Value of the Borrowing Base Real Estate as
set forth in Section 7.11(a)(iii).

(ix)           At
the time of such extension, Borrower shall be in compliance with the Debt
Service Coverage covenant set forth in Section 7.11(b).

(x)            The
representations and warranties
contained in this Agreement are true and correct on and as of the date of such
extension and after giving effect thereto, as though made on and as of such
date (or, if any such representation or warranty is expressly stated to have
been made as of a specific date, as of such specific date).

(x)            At
the time of such extension, the Borrower (and if requested by the
Administrative Agent, the Borrower’s Subsidiaries) shall have executed such
other and further assurances, certificates, documents, consents or opinions as
the Administrative Agent, the L/C Issuer, or the Required Lenders reasonably
may require.

If all of the
foregoing conditions are not satisfied strictly in accordance with their terms,
the extension shall not be or become effective.

 40
 

 

 

(c)           Changes in Loan Terms.  All terms and conditions of the Loan
Documents shall continue to apply to the extended term.

(d)           Conflicting Provisions.  This Section shall supersede any provisions
in Section 2.13 or 10.01 to the contrary.

ARTICLE
III.

TAXES, YIELD PROTECTION AND ILLEGALITY

3.01        Taxes.

(a)           Payments Free of Taxes.  Any and all payments by or on account of any
obligation of the Borrower hereunder or under any other Loan Document shall be
made free and clear of and without reduction or withholding for any Indemnified
Taxes or Other Taxes, provided that if the Borrower shall be required by
applicable law to deduct any Indemnified Taxes (including any Other Taxes) from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or
L/C Issuer, as the case may be, receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall make
such deductions and (iii) the Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.

(b)           Payment
of Other Taxes by the Borrower. 
Without limiting the provisions of subsection (a) above, the Borrower
shall timely pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

(c)           Indemnification
by the Borrower.  The Borrower shall
indemnify the Administrative Agent, each Lender and the L/C Issuer, within 10
days after demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) paid by the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and
any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender or
the L/C Issuer (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the L/C
Issuer, shall be conclusive absent manifest error.

(d)           Evidence
of Payments.  As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by the Borrower to a
Governmental Authority, the Borrower shall deliver to the Administrative Agent
the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to the Administrative
Agent.

(e)           Status
of Lenders.  Any Foreign Lender that
is entitled to an exemption from or reduction of withholding tax under the law
of the jurisdiction in which the Borrower is resident for tax purposes, or any
treaty to which such jurisdiction is a party, with respect to payments

 41
 

 

 

hereunder
or under any other Loan Document shall deliver to the Borrower (with a copy to
the Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate of
withholding.  In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

Without limiting the generality of the foregoing, in
the event that the Borrower is resident for tax purposes in the United States,
any Foreign Lender shall deliver to the Borrower and the Administrative Agent
(in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter upon the request of the Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable:

(i)            duly completed copies of Internal
Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax
treaty to which the United States is a party,

(ii)           duly completed copies of Internal
Revenue Service Form W-8ECI,

(iii)          in the case of a Foreign Lender
claiming the benefits of the exemption for portfolio interest under section
881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is
not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a
“10 percent shareholder” of the Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described
in section 881(c)(3)(C) of the Code and (y) duly completed copies of  Internal Revenue Service Form W-8BEN, or

(iv)          any other form prescribed by
applicable law as a basis for claiming exemption from or a reduction in United
States Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable law to permit the Borrower to
determine the withholding or deduction required to be made.

(f)            Treatment of Certain Refunds.  If the Administrative Agent, any Lender or
the L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section, it shall pay to the Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
the Administrative Agent, such Lender or the L/C Issuer, as the case may be,
and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that the Borrower, upon
the request of the Administrative Agent, such Lender or the L/C Issuer, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the

 42
 

 

 

relevant
Governmental Authority) to the Administrative Agent, such Lender or the L/C
Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is
required to repay such refund to such Governmental Authority.  This subsection shall not be construed to
require the Administrative Agent, any Lender or the L/C Issuer to make
available its tax returns (or any other information relating to its taxes that
it deems confidential) to the Borrower or any other Person.

3.02        Illegality.

If any Lender
determines that any Law has made it unlawful, or that any Governmental
Authority has asserted that it is unlawful, for any Lender or its applicable
Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine
or charge interest rates based upon the Eurodollar Rate, or any Governmental
Authority has imposed material restrictions on the authority of such Lender to
purchase or sell, or to take deposits of, Dollars in the London interbank
market, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate Committed Loans to Eurodollar
Rate Loans shall be suspended until such Lender notifies the Administrative
Agent and the Borrower that the circumstances giving rise to such determination
no longer exist.  Upon receipt of such
notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative
Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period
therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate
Loans to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurodollar Rate Loans. 
Upon any such prepayment or conversion, the Borrower shall also pay
accrued interest on the amount so prepaid or converted.

3.03        Inability
to Determine Rates.

If the Required
Lenders determine that for any reason in connection with any request for a
Eurodollar Rate Loan or a conversion to or continuation thereof that
(a) Dollar deposits are not being offered to banks in the London interbank
eurodollar market for the applicable amount and Interest Period of such
Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurodollar Rate for any requested Interest Period with respect
to a proposed Eurodollar Rate Loan , or (c) the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan does
not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to
make or maintain Eurodollar Rate Loans shall be suspended until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such
notice, the Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Committed
Borrowing of Base Rate Loans in the amount specified therein.

3.04        Increased
Costs.

(a)           Increased Costs Generally.  If any Change in Law shall:

 43
 

 

 

(i)            impose, modify or deem applicable
any reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
reflected in the Eurodollar Rate) or the L/C Issuer;

(ii)           subject any Lender or the L/C Issuer
to any tax of any kind whatsoever with respect to this Agreement, any Letter of
Credit, any participation in a Letter of Credit or any Eurodollar Rate Loan
made by it, or change the basis of taxation of payments to such Lender or the
L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate
of, any Excluded Tax payable by such Lender or the L/C Issuer); or

(iii)          impose on any Lender or the L/C Issuer
or the London interbank market any other condition, cost or expense affecting
this Agreement or Eurodollar Rate Loans made by such Lender or any Letter of
Credit or participation therein;

and the result of
any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make
any such Loan), or to increase the cost to such Lender or the L/C Issuer of
participating in, issuing or maintaining any Letter of Credit (or of
maintaining its obligation to participate in or to issue any Letter of Credit),
or to reduce the amount of any sum received or receivable by such Lender or the
L/C Issuer hereunder (whether of principal, interest or any other amount) then,
upon request of such Lender or the L/C Issuer, the Borrower will pay to such
Lender or the L/C Issuer, as the case may be, such additional amount or amounts
as will compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

(b)           Capital Requirements.  If any Lender or the L/C Issuer determines that
any Change in Law affecting such Lender or the L/C Issuer or any Lending Office
of such Lender or such Lender’s or the L/C Issuer’s holding company, if any,
regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender’s or the L/C Issuer’s capital or on the capital
of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence
of this Agreement, the Commitments of such Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the L/C Issuer, to a level below that which such Lender or the
L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s
holding company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer
or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

(c)           Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the
L/C Issuer or its holding company, as the case may be, as specified in
subsection (a) or (b) of this Section and delivered to the Borrower shall be
conclusive absent manifest error.  The
Borrower shall pay such Lender or the L/C Issuer, as the case may be, the
amount shown as due on any such certificate within 10 days after receipt
thereof.

 44

 

(d)           Delay in Requests.  Failure or delay on the part of any Lender or
the L/C Issuer to demand compensation pursuant to the foregoing provisions of
this Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s
right to demand such compensation, provided that the Borrower shall not
be required to compensate a Lender or the L/C Issuer pursuant to the foregoing
provisions of this Section for any increased costs incurred or reductions
suffered more than three months prior to the date that such Lender or the L/C
Issuer, as the case may be, notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s or the L/C
Issuer’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the three-month period referred to above shall be extended to include the
period of retroactive effect thereof).

3.05                        Compensation
for Losses.

Upon demand of any
Lender (with a copy to the Administrative Agent) from time to time, the
Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

(a)           any continuation, conversion, payment
or prepayment of any Loan other than a Base Rate Loan on a day other than the
last day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

(b)           any failure by the Borrower (for a
reason other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrower; or

(c)           any assignment of a Eurodollar Rate
Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrower pursuant to Section 10.13;

including any loss of anticipated profits and any
loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Loan or from fees payable to terminate the deposits from
which such funds were obtained.  The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

For purposes of
calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be
deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar
Base Rate used in determining the Eurodollar Rate for such Loan by a matching
deposit or other borrowing in the London interbank eurodollar market for a
comparable amount and for a comparable period, whether or not such Eurodollar
Rate Loan was in fact so funded.

3.06        Mitigation
Obligations; Replacement of Lenders.

(a)           Designation
of a Different Lending Office.  If
any Lender requests compensation under Section 3.04, or 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 3.01, or if
any Lender gives a notice pursuant to Section 3.02, then such Lender
shall use reasonable efforts to designate a different Lending Office for
funding or booking its Loans hereunder or to assign its

 45
 

 

 

rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 3.01 or 3.04, as the
case may be, in the future, or eliminate the need for the notice pursuant to Section
3.02, as applicable, and (ii) in each case, would not subject such Lender
to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender.  The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

(b)           Replacement of Lenders.  If any Lender requests compensation under Section
3.04, 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
3.01, the Borrower may replace such Lender in accordance with Section
10.13.

3.07        Survival.

All of the
Borrower’s obligations under this Article III shall survive termination
of the Aggregate Commitments and repayment of all other Obligations hereunder.

ARTICLE
IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

4.01        Conditions
of Initial Borrowing.  The obligation of each
Lender to make its initial Credit Extension hereunder, as a Committed Loan
under the Initial Borrowing, is subject to satisfaction of the following
conditions precedent:

(a)           The Administrative Agent’s receipt of
the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the Borrower, each dated the Closing Date (or, in the
case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance satisfactory to the Administrative
Agent and each of the Lenders:

(i)            executed counterparts of this
Agreement, sufficient in number for distribution to the Administrative Agent,
each Lender and the Borrower;

(ii)           a Note executed by the Borrower in
favor of each Lender requesting a Note;

(iii)          such certificates of resolutions or
other action, incumbency certificates and/or other certificates of Responsible
Officers of the Borrower as the Administrative Agent may reasonably require
evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this
Agreement and the other Loan Documents to which the Borrower is a party;

(iv)          such documents and certifications as
the Administrative Agent may reasonably require to evidence that the Borrower
is duly organized or formed, and that 
the Borrower is validly existing, in good standing and qualified to
engage in business in the State of Maryland and each jurisdiction where its
ownership, lease or operation of

 46
 

 

 

properties or the conduct
of its business requires such qualification, except to the extent that failure
to do so could not reasonably be expected to have a Material Adverse Effect;

(v)           a favorable opinion of Goodwin
Procter LLP, being counsel to the Borrower, addressed to the Administrative
Agent and each Lender, as to the matters set forth in Exhibit E and such
other matters concerning the Borrower, its Subsidiaries, and the Loan Documents
as the Required Lenders may reasonably request;

(vi)          a certificate of a Responsible Officer
of the Borrower either (A) attaching copies of all consents, licenses and
approvals required in connection with the execution, delivery and performance
by the Borrower and the validity against the Borrower of the Loan Documents to
which it is a party, and such consents, licenses and approvals shall be in full
force and effect, or (B) stating that no such consents, licenses or approvals
are so required;

(vii)         a certificate signed by a Responsible
Officer of the Borrower certifying (A) that the conditions specified in Sections
4.02(a) and (b) have been satisfied and (B) that there has been no
event or circumstance since the date of the Audited Financial Statements that
has had or could be reasonably expected to have, either individually or in the
aggregate, a Material Adverse Effect;

(viii)        a duly completed Compliance Certificate
as of the last day of the fiscal quarter of the Borrower ended on September 30,
2006, signed by a Responsible Officer of the Borrower;

(ix)           evidence that all insurance required
to be maintained pursuant to the Loan Documents has been obtained and is in
effect;

(x)            evidence that the Borrower shall
have made the Borrower’s Required Equity Contribution and that concurrently
with the Closing Date and the making of the Initial Borrowing hereunder, the
BCP Debt is being repaid in full and terminated and all Liens securing
obligations under the BCP Loan Documents relating thereto have been or
concurrently with the Closing Date are being released to the satisfaction of
Administrative Agent;

(xi)           an Original Appraisal satisfactory to
the Administrative Agent and the Lenders in all respects; and

(xii)          such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, the L/C Issuer, or
the Required Lenders reasonably may require.

(b)           Any fees required to be paid on or
before the Closing Date shall have been paid, which payment may be provided by
funds advanced under the Initial Borrowing.

(c)           Unless waived by the Administrative
Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent to the extent invoiced prior to or on the
Closing Date, plus such additional amounts of such fees, charges and
disbursements as shall constitute its reasonable estimate of such fees, charges
and disbursements incurred or to be

 47
 

 

 

incurred by it
through the closing proceedings (provided that such estimate shall not
thereafter preclude a final settling of accounts between the Borrower and the
Administrative Agent).

Without
limiting the generality of the provisions of Section 9.04, for purposes
of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

4.02        Conditions
to all Credit Extensions.  The obligation of each
Lender and L/C Issuer to honor any Request for Credit Extension (other than a
Committed Loan Notice requesting only a conversion of Committed Loans to the
other Type, or a continuation of Eurodollar Rate Loans) is subject to the
following conditions precedent:

(a)           The representations and warranties of
the Borrower contained in Article V or any other Loan Document, or which
are contained in any document furnished at any time under or in connection
herewith or therewith, shall be true and correct on and as of the date of such
Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date, and except that for purposes of this Section
4.02, the representations and warranties contained in subsections (a) and
(b) of Section 5.05 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of Section
6.01.

(b)           No Default shall exist, or would
result from such proposed Credit Extension or from the application of the
proceeds thereof.

(c)           The Administrative Agent and, if
applicable, the L/C Issuer shall have received a Request for Credit Extension
in accordance with the requirements hereof, together with a Compliance
Certificate as specified in Section 2.01(b) with respect to all Credit
Extensions.

Each Request for Credit Extension (other than a
Committed Loan Notice requesting only a conversion of Committed Loans to the
other Type or a continuation of Eurodollar Rate Loans) submitted by the
Borrower shall be deemed to be a representation and warranty that the
conditions specified in Sections 4.02(a) and (b) have been
satisfied on and as of the date of the applicable Credit Extension.

ARTICLE
V.

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the
Administrative Agent and the Lenders that:

5.01        Existence,
Qualification and Power;
Compliance with Laws.  The
Borrower and each Subsidiary thereof (a) is duly organized or formed, validly
existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and
all requisite governmental licenses, authorizations, consents and approvals to
(i) own or lease its assets and carry on its business and (ii) execute, deliver
and

 48
 

 

 

perform its
obligations under the Loan Documents to which it is a party, (c) is duly
qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, and (d) is in
compliance with all Laws; except in each case referred to in clause (b)(i), (c)
or (d), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

5.02        Authorization;
No Contravention.  The execution, delivery and
performance by the Borrower of the Loan Documents have been duly authorized by
all necessary corporate or other organizational action, and do not and will not
(a) contravene the terms of any of the Borrower’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or the creation of
any Lien under, or require any payment to be made under (i) any Contractual
Obligation to which the Borrower is a party or affecting the Borrower or the
properties of the Borrower or any of its Subsidiaries or (ii) any order,
injunction, writ or decree of any Governmental Authority or any arbitral award
to which the Borrower or its property is subject; or (c) violate any Law.  The Borrower (and each Subsidiary thereof) is
in compliance with all Contractual Obligations referred to in clause (b)(i),
except to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

5.03        Governmental
Authorization; Other Consents.  No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, the Borrower of this Agreement or any other Loan Document.

5.04        Binding
Effect. 
This Agreement has been, and each other Loan Document,
when delivered hereunder, will have been, duly executed and delivered by the
Borrower.  This Agreement constitutes,
and each other Loan Document when so delivered will constitute, a legal, valid
and binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, subject to the effects of bankruptcy, insolvency and
other laws affecting the rights of creditors and general principles of equity.

5.05        Financial
Statements; No Material Adverse Effect; No Internal Control Event.

(a)           To Borrower’s knowledge, the Audited
Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein; (ii) fairly present the financial condition of the Borrower and
its Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein; and
(iii) show all material indebtedness and other liabilities, direct or
contingent, of the Borrower and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness.

(b)           To Borrower’s knowledge, the
unaudited consolidated and consolidating balance sheets of the Borrower and its
Subsidiaries dated September 30, 2006, and the related consolidated and
consolidating statements of income
or operations, shareholders’ equity and cash

 49
 

 

 

flows for the
fiscal quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein, and (ii) fairly present the financial condition of the
Borrower and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby, subject, in the case of clauses (i)
and (ii), to the absence of footnotes and to normal year-end audit
adjustments.  To Borrower’s knowledge, Schedule
5.05 sets forth all material indebtedness and other liabilities, direct or
contingent, of the Borrower and its consolidated Subsidiaries as of the date of
such financial statements, including liabilities for taxes, material
commitments and Indebtedness.

(c)           Since the date of the Audited Financial
Statements, there has been no event or circumstance, either individually or in
the aggregate, that has had or could reasonably be expected to have a Material
Adverse Effect.

(d)           Since the date of the Audited
Financial Statements, no Internal Control Event has occurred.

(e)           To Borrower’s knowledge, the
consolidated and consolidating pro forma balance sheets of the Borrower and its
Subsidiaries as of September 30, 2006, and the related consolidated and
consolidating pro forma statements of income and cash flows of the Borrower and
its Subsidiaries for the quarter then ended, certified by the chief financial
officer of the Borrower, copies of which have been furnished to each Lender,
fairly present the consolidated and consolidating pro forma financial condition
of the Borrower and its Subsidiaries as at such date and the consolidated and
consolidating pro forma results of operations of the Borrower and its
Subsidiaries for the period ended on such date, all in accordance with GAAP.

5.06        Litigation.  To
Borrower’s knowledge, there are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of the Borrower after due and diligent
investigation, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, by or against the Borrower or any of its
Subsidiaries or against any of their properties or revenues that (a) purport to
affect or pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby, or (b) except as specifically disclosed in Schedule
5.06, either individually or
in the aggregate, if determined adversely, could reasonably be expected to have
a Material Adverse Effect, and there has been no adverse change in the status,
or financial effect on the Borrower or any Subsidiary thereof, of the matters
described on Schedule 5.06.

5.07        No
Default.  To
Borrower’s knowledge, neither the Borrower nor any Subsidiary is in default
under or with respect to any Contractual Obligation that could, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.  To Borrower’s knowledge,
no Default has occurred and is continuing or would result from the consummation
of the transactions contemplated by this Agreement or any other Loan Document.

5.08        Ownership
of Property; Liens.  To Borrower’s knowledge,
each of the Borrower’s Subsidiaries has good record and marketable title in fee
simple to, or valid leasehold interests in, all real property necessary or used
in the ordinary conduct of its business, except for such defects in title as
could not, individually or in the aggregate, reasonably be expected to have

 50
 

 

 

a Material Adverse
Effect.  To Borrower’s knowledge, the
respective property of the Borrower’s Subsidiaries is subject to no Liens,
other than Liens permitted by Section 7.01.

5.09        Environmental
Compliance.  The Borrower and its
Subsidiaries conduct in the ordinary course of business a review of the effect
of existing Environmental Laws and claims alleging potential liability or
responsibility for violation of any Environmental Law on their respective
businesses, operations and properties, and as a result thereof the Borrower has
reasonably concluded that, except as specifically disclosed in Schedule 5.09,
such Environmental Laws and claims could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

5.10        Insurance.  The
properties of the Borrower and its Subsidiaries are insured with financially
sound and reputable insurance companies not Affiliates of the Borrower, in such
amounts (after giving effect to any self-insurance compatible with the
following standards), with to Borrower’s knowledge, such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Borrower or
the applicable Subsidiary operates.

5.11        Taxes.  The
Borrower and its Subsidiaries have filed all Federal, state and other material
tax returns and reports required to be filed, and have paid all Federal, state
and other material taxes, assessments, fees and other governmental charges
levied or imposed upon them or their properties, income or assets otherwise due
and payable, except those which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves
have been provided in accordance with GAAP. 
To Borrower’s knowledge, there is no proposed tax assessment against the
Borrower or any Subsidiary that would, if made, have a Material Adverse
Effect.  Neither the Borrower nor any
Subsidiary thereof is party to any tax sharing agreement.

5.12        ERISA
Compliance.

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

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

 51
 

 

 

(c)           (i) 
No ERISA Event has occurred or is reasonably expected to occur; (ii) no
Pension Plan has any Unfunded Pension Liability; (iii) neither the Borrower nor
any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
under Title IV of ERISA with respect to any Pension Plan (other than premiums
due and not delinquent under Section 4007 of ERISA); (iv) neither the Borrower
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such liability) under Sections 4201 or
4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the
Borrower nor any ERISA Affiliate has engaged in a transaction that could be
subject to Sections 4069 or 4212(c) of ERISA.

5.13         Subsidiaries; Equity Interests.  As of the Closing Date, the
Borrower has no Subsidiaries other than those specifically disclosed in Part
(a) of Schedule 5.13, and all of the outstanding Equity Interests in
such Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by the Borrower in the amounts specified on Part (a) of Schedule
5.13 free and clear of all Liens (other than those to be discharged upon
repayment of the BCP Debt).  The Borrower
has no equity investments in any Property Level Entity and in any other
corporation or entity other than those specifically disclosed in Part(b) of Schedule
5.13.  All of the outstanding Equity
Interests in the Borrower have been validly issued and are fully paid and
nonassessable.

5.14        Margin Regulations;
Investment Company Act; Public Utility Holding Company Act.

(a)           The Borrower is not engaged and will
not engage, principally or as one of its important activities, in the business
of purchasing or carrying margin stock (within the meaning of Regulation U
issued by the FRB), or extending credit for the purpose of purchasing or
carrying margin stock.

(b)           None of the Borrower, any Person
Controlling the Borrower, or any Subsidiary (i) is a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of
a “subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 1935, or (ii) is or is required to be registered
as an “investment company” under the Investment Company Act of 1940.

5.15        Disclosure.  To
Borrower’s knowledge, the Borrower has disclosed to the Administrative Agent
and the Lenders all agreements, instruments and corporate or other restrictions
to which it or any of its Subsidiaries is subject, and all other matters known
to it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.  To
Borrower’s knowledge, no report, financial statement, certificate or other
information furnished (whether in writing or orally) by or on behalf of the
Borrower or any of its Subsidiaries to the Administrative Agent or any Lender
in connection with the transactions contemplated hereby and the negotiation of
this Agreement or delivered hereunder or under any other Loan Document (in each
case, as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that, with respect to projected
financial information, the Borrower

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represents only
that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

5.16        Compliance with Laws. 
To Borrower’s knowledge, each of the Borrower and each
Subsidiary is in compliance in all material respects with the requirements of
all Laws and all orders, writs, injunctions and decrees applicable to it or to
its properties, including, without limitation, in connection with the Borrower’s
Equity Offering, except in such instances in which (a) such requirement of Law
or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply
therewith, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

5.17         Intellectual Property; Licenses, Etc.  To Borrower’s knowledge, the Borrower and its
Subsidiaries own, or possess the right to use, all of the trademarks, service
marks, trade names, copyrights, patents, patent rights, franchises, licenses
and other intellectual property rights (collectively, “IP Rights”) that
are reasonably necessary for the operation of their respective businesses,
without conflict with the rights of any other Person.  To the best knowledge of the Borrower, no
slogan or other advertising device, product, process, method, substance, part
or other material now employed, or now contemplated to be employed, by the
Borrower or any Subsidiary infringes upon any rights held by any other Person.  To Borrower’s knowledge, except as
specifically disclosed in Schedule 5.17, no claim or litigation
regarding any of the foregoing is pending or, to the best knowledge of the
Borrower, threatened, which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

5.18        Qualification
as REIT.  The Borrower is qualified as a REIT under the
provisions of the Code, including, without limitation, the requirements for
qualification as a REIT pursuant to Sections 856 through 860 of the Code.

ARTICLE
VI.

AFFIRMATIVE COVENANTS

So long as any Lender
shall have any Commitment hereunder, any Loan or other Obligation hereunder
shall remain unpaid or unsatisfied, or any Letter of Credit shall remain
outstanding, the Borrower shall, and shall (except in the case of the covenants
set forth in Sections 6.01, 6.02, and 6.03) cause each
Subsidiary to:

6.01        Financial
Statements. 
Deliver to the Administrative Agent and each Lender,
in form and detail satisfactory to the Administrative Agent and the Required
Lenders:

(a)           as soon as available, but in any
event within 105 days after the end of each fiscal year of the Borrower
(commencing with the fiscal year ended December 31, 2006), a consolidated and
consolidating balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal year, and the related consolidated consolidating statements of
income or operations, shareholders’ equity and cash flows for such fiscal year,
setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail and prepared in accordance with GAAP,
such consolidated statements to be audited and accompanied by (i) a report and

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opinion of a
Registered Public Accounting Firm of nationally recognized standing reasonably
acceptable to the Required Lenders, which report and opinion shall be prepared
in accordance with generally accepted auditing standards and applicable
Securities Laws and shall not be subject to any “going concern” or like
qualification or exception except in connection with this Agreement or any
qualification or exception as to the scope of such audit and (ii) for all
fiscal years commencing with the fiscal year ending December 31, 2007, an
attestation report of such Registered Public Accounting Firm as to the Borrower’s
internal controls pursuant to Section 404 of Sarbanes-Oxley expressing a
conclusion to which the Required Lenders do not object, and such consolidating
statements to be certified by a Responsible Officer of the Borrower to the
effect that such statements are fairly stated in all material respects when
considered in relation to the consolidated financial statements of the Borrower
and its Subsidiaries; and

(b)           as soon as available, but in any
event within 50 days after the end of each of the first three fiscal quarters
of each fiscal year of the Borrower (commencing with the fiscal quarter ended
March 31, 2007), a consolidated and consolidating balance sheet of the Borrower
and its Subsidiaries as at the end of such fiscal quarter, and the related
consolidated and consolidating statements of income or operations, shareholders’
equity and cash flows for such fiscal quarter and for the portion of the
Borrower’s fiscal year then ended, setting forth in each case in comparative
form the figures for the corresponding fiscal quarter of the previous fiscal
year and the corresponding portion of the previous fiscal year, all in
reasonable detail, such consolidated statements to be certified by a
Responsible Officer of the Borrower as fairly presenting the financial
condition, results of operations, shareholders’ equity and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP, subject only to normal
year-end audit adjustments and the absence of footnotes and such consolidating
statements to be certified by a Responsible Officer of the Borrower to the
effect that such statements are fairly stated in all material respects when
considered in relation to the consolidated financial statements of the Borrower
and its Subsidiaries.

As
to any information contained in materials furnished pursuant to Section 6.02,
the Borrower shall not be separately required to furnish such information under
clause (a) or (b) above, but the foregoing shall not be in derogation of the
obligation of the Borrower to furnish the information and materials described
in clauses (a) and (b) above at the times specified therein.

6.02        Certificates;
Other Information.  Deliver to the
Administrative Agent and each Lender, in form and detail satisfactory to the
Administrative Agent and the Required Lenders:

(a)           concurrently with the delivery of the
financial statements referred to in Section 6.01(a), a certificate
of its independent certified public accountants certifying such financial
statements and stating that in making the examination necessary therefor no
knowledge was obtained of any Default (including under the financial covenants
set forth herein) or, if any such Default shall exist, stating the nature and
status of such event;

(b)           concurrently with the delivery of the
financial statements referred to in Sections 6.01(a) and (b)
a duly completed Compliance Certificate signed by a Responsible Officer of the
Borrower;

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(c)           promptly after any reasonable request
by the Administrative Agent or any Lender, copies of any detailed audit
reports, management letters or recommendations submitted to the board of
directors (or the audit committee of the board of directors) of the Borrower by
independent accountants in connection with the accounts or books of the
Borrower or any Subsidiary, or any audit of any of them provided, however, that
in no event shall Borrower be required to furnish Lender with any information
pursuant to this Section 6.02(c) which is not available to the general public;

(d)           promptly after the same are available,
copies of each annual report, proxy or financial statement or other report or
communication sent to the stockholders of the Borrower, and copies of all
annual, regular, periodic and special reports and registration statements which
the Borrower may file or be required to file with the SEC under Section 13 or
15(d) of the Securities Exchange Act of 1934, and not otherwise required to be
delivered to the Administrative Agent pursuant hereto;

(e)           promptly, and in any event within
five Business Days after receipt thereof by the Borrower or any Subsidiary
thereof, copies of each notice or other correspondence received from the SEC
(or comparable agency in any applicable non-U.S. jurisdiction) concerning any
investigation or possible investigation or other inquiry by such agency
regarding financial or other operational results of the Borrower or any
Subsidiary thereof; and

(f)            promptly, such additional
information regarding the business, financial or corporate affairs of the
Borrower or any Subsidiary, or compliance with the terms of the Loan Documents,
as the Administrative Agent or any Lender may from time to time reasonably
request.

Documents
required to be delivered pursuant to Section 6.01(a) or (b) or Section
6.02(d) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 10.02;
or (ii) on which such documents are posted on the Borrower’s behalf on an
Internet or intranet website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the
Borrower shall deliver paper copies of such documents to the Administrative
Agent or any Lender that requests the Borrower to deliver such paper copies
until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (ii) the Borrower shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such
documents.  Notwithstanding anything
contained herein, in every instance the Borrower shall be required to provide
paper copies of the Compliance Certificates required by Section 6.02(b)
to the Administrative Agent.  Except for
such Compliance Certificates, the Administrative Agent shall have no obligation
to request the delivery or to maintain copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by
the Borrower with any such request for delivery, and each Lender shall be
solely responsible for requesting delivery to it or maintaining its copies of
such documents.

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The
Borrower hereby acknowledges that (a) the Administrative Agent will make
available to the Lenders and the L/C Issuer materials and/or information
provided by or on behalf of the Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with
respect to the Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that so long as
the Borrower is the issuer of any outstanding debt or equity securities that
are registered or issued pursuant to a private offering or is actively
contemplating issuing any such securities (w) all Borrower Materials that are
to be made available to Public Lenders shall be clearly and conspicuously
marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (x) by marking Borrower Materials
“PUBLIC,” the Borrower shall be deemed to have authorized the Administrative
Agent, the L/C Issuer and the Lenders to treat such Borrower Materials as not
containing any material non-public information with respect to the Borrower or
its securities for purposes of United States Federal and state securities laws
(provided, however, that to the extent such Borrower Materials
constitute Information, they shall be treated as set forth in Section 10.07);
(y) all Borrower Materials marked “PUBLIC” are permitted to be made available
through a portion of the Platform designated “Public Investor;” and (z) the
Administrative Agent and the Arranger shall be entitled to treat any Borrower
Materials that are not marked “PUBLIC” as being suitable only for posting on a
portion of the Platform not designated “Public Investor.”  Notwithstanding the foregoing, the Borrower
shall be under no obligation to mark any Borrower Materials “PUBLIC.”

6.03        Notices.  Promptly
notify the Administrative Agent and each Lender:

(a)           of the occurrence of any Default;

(b)           of any matter that has resulted or
could reasonably be expected to result in a Material Adverse Effect, including
(i) breach or non-performance of, or any default under, a Contractual
Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation,
investigation, proceeding or suspension between the Borrower or any Subsidiary
and any Governmental Authority; or (iii) the commencement of, or any material
development in, any litigation or proceeding affecting the Borrower or any
Subsidiary, including pursuant to any applicable Environmental Laws;

(c)           of the occurrence of any ERISA Event;

(d)           of any material change in accounting
policies or financial reporting practices by the Borrower or any Subsidiary;

(e)           of the occurrence of any Internal
Control Event.

Each
notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower has taken and proposes
to take with respect thereto.  Each
notice pursuant to Section 6.03(a) shall describe with particularity any
and all provisions of this Agreement and any other Loan Document that have been
breached.

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6.04        Payment
of Obligations.  Pay and discharge as the
same shall become due and payable, all its obligations and liabilities,
including (a) all tax liabilities, assessments and governmental charges or
levies upon it or its properties or assets, unless the same are being contested
in good faith by appropriate proceedings diligently conducted and adequate
reserves in accordance with GAAP are being maintained by the Borrower or such
Subsidiary; (b) all lawful claims which, if unpaid, would by law become a Lien
upon its property; and (c) all Indebtedness, as and when due and payable, but
subject to any subordination provisions contained in any instrument or
agreement evidencing such Indebtedness.

6.05        Preservation
of Existence, Qualification
as REIT, Etc.  (a)
Preserve, renew and maintain in full force and effect its legal existence and
good standing under the Laws of the jurisdiction of its organization except in
a transaction permitted by Section 7.04 or 7.05; (b) take all
reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the normal conduct of its business, except
to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; (c) preserve or renew all of its registered patents,
trademarks, trade names and service marks, the non-preservation of which could
reasonably be expected to have a Material Adverse Effect; and (d) engage in
such business activities, and shall refrain from engaging in such activities, so
as to continue to meet the requirements for qualification and taxation as a
REIT under the Code.

6.06        Maintenance
of Properties.  (a) Maintain,
preserve and protect all of its material properties and equipment necessary in
the operation of its business in good working order and condition, ordinary
wear and tear excepted; (b) make all necessary repairs thereto and renewals and
replacements thereof except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect; and (c) use the standard of care
typical in the industry in the operation and maintenance of its facilities.

6.07        Maintenance of Insurance. 
Maintain with financially sound and reputable
insurance companies not Affiliates of the Borrower, insurance with respect to its
properties and business against loss or damage of the kinds customarily insured
against by Persons engaged in the same or similar business, of such types and
in such amounts (after giving effect to any self-insurance compatible with the
following standards) as, to Borrower’s knowledge, are customarily carried under
similar circumstances by such other Persons and
providing for not less than 30 days’ prior notice to the Administrative Agent
of termination, lapse or cancellation of such insurance.

6.08        Compliance
with Laws.  Comply in all material
respects with the requirements of all Laws and all orders, writs, injunctions
and decrees applicable to it or to its business or property, except in such
instances in which (a) such requirement of Law or order, writ, injunction or
decree is being contested in good faith by appropriate proceedings diligently
conducted; or (b) the failure to comply therewith could not reasonably be
expected to have a Material Adverse Effect.

6.09        Books
and Records.  (a) Maintain proper books
of record and account, in which full, true and correct entries in conformity
with GAAP consistently applied shall be made of all financial transactions and
matters involving the assets and business of the Borrower or such Subsidiary,
as the case may be; and (b) maintain such books of record and account in
material

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conformity with
all applicable requirements of any Governmental Authority having regulatory
jurisdiction over the Borrower or such Subsidiary, as the case may be.

6.10        Inspection
Rights.  Permit representatives and
independent contractors of the Administrative Agent and each Lender to visit
and inspect any of its properties, to examine its corporate, financial and
operating records, and make copies thereof or abstracts therefrom, and to discuss
its affairs, finances and accounts with its directors, officers, and
independent public accountants, all at the expense of the Borrower and at such
reasonable times during normal business hours and as often as may be reasonably
desired, upon reasonable advance notice to the Borrower; provided, however,
that when an Event of Default exists the Administrative Agent or any Lender (or
any of their respective representatives or independent contractors) may do any
of the foregoing at the expense of the Borrower at any time during normal
business hours and without advance notice.

6.11        Use
of Proceeds.  Use the proceeds of the
Credit Extensions as follows:

(a)           with respect to the Committed Loan
under the Initial Borrowing, solely towards the repayment of the BCP Debt and
the refinancing of the Plano Loan;

(b)           with respect to Committed Loans under
the Subsequent Borrowing, solely for (i) the acquisition by the Borrower or any
of its Subsidiaries (including with respect to a Project Level Entity) of
additional Real Estate Projects; (ii) to fund capital needs associated with the
Borrower’s Real Estate Projects, and (iii) for general corporate purposes not
in contravention of any Law or of any Loan Document.

(c)           for the issuance of any Letters of
Credit on behalf of the Borrower and/or its Subsidiaries for the purposes set
forth in (b) above.

6.12        Intentionally Omitted Account.  The Borrower shall establish and maintain
through the term of the Loan an operating deposit account at the Administrative
Agent.

ARTICLE VII.

NEGATIVE COVENANTS

So long as any Lender
shall have any Commitment hereunder, any Loan or other Obligation hereunder
shall remain unpaid or unsatisfied, or any Letter of Credit shall remain
outstanding, the Borrower shall not, nor shall it permit any Subsidiary to,
directly or indirectly:

7.01        Liens.  Create,
incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

(a)           Liens pursuant to any Loan Document;

(b)           Liens granted by a Subsidiary or
Project Level Entity  (i) existing on the
date hereof and listed on Schedule 7.01 and (ii) any other liens
securing any permitted Secured Mortgage Debt existing as of the Closing Date
and/or hereafter incurred and (ii) all modifications, extensions,
consolidations, and refinancings of the foregoing;

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(c)           Liens for taxes not yet due or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

(d)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 60 days or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person;

(e)           pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien imposed by
ERISA;

(f)            deposits to secure the performance
of bids, trade contracts and leases (other than Indebtedness), statutory
obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature incurred in the ordinary course of business;

(g)           easements, rights-of-way,
restrictions and other similar encumbrances affecting real property which, in
the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the applicable
Subsidiary;

(h)           Liens securing judgments for the
payment of money not constituting an Event of Default under Section 8.01(h);
and

(i)            Liens granted by a Subsidiary
securing Indebtedness permitted under Section 7.03(e); provided
that such Liens do not at any time encumber any property other than the
property financed by such Indebtedness.

7.02        Investments.  Make
any Investments, except:

(a)           Investments held by the Borrower or
such Subsidiary in the form of cash equivalents or short-term marketable
securities;

(b)           advances to officers, directors and
employees of the Borrower and Subsidiaries at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes;

(c)           Investments of the Borrower in any
Subsidiary and/or otherwise with respect to Property Level Entity and
Investments of any Subsidiary in the Borrower or in another Subsidiary and/or
with respect to Property Level Entity or Real Estate Project, and all
modifications, extensions and consolidations thereof;

(d)           Investments consisting of extensions
of credit in the nature of accounts receivable or notes receivable arising from
the grant of trade credit in the ordinary course of business, and Investments
received in satisfaction or partial satisfaction thereof from financially
troubled account debtors to the extent reasonably necessary in order to prevent
or limit loss;

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(e)           Guarantees permitted by Section
7.03; and

(f)            other Investments not exceeding
$20,000,000.00 in the aggregate in any fiscal year of the Borrower.

7.03        Indebtedness.  Create,
incur, assume or suffer to exist any Off-Balance Sheet Liabilities or any
Indebtedness, except:

(a)           Indebtedness under the Loan
Documents;

(b)           Indebtedness of any Subsidiary
outstanding or incurred by any Project Level Entity on the date hereof listed
on Schedule 7.03 and all Secured Mortgage Debt hereafter incurred and
any refinancings, refundings, renewals or extensions thereof;

(c)           Customary non-recourse carve out
Guarantees and/or environmental indemnification agreements of the Borrower or
any Subsidiary in respect of Indebtedness otherwise permitted hereunder of the
Borrower or any Subsidiary;

(d)           obligations (contingent or otherwise)
of the Borrower or any Subsidiary existing or arising under any Swap Contract, provided
that (i) such obligations are (or were) entered into by such Person in the
ordinary course of business for the purpose of directly mitigating risks
associated with liabilities, commitments, investments, assets, or property held
or reasonably anticipated by such Person, or changes in the value of securities
issued by such Person, and not for purposes of speculation or taking a “market
view;” and (ii) such Swap Contract does not contain any provision exonerating
the non-defaulting party from its obligation to make payments on outstanding
transactions to the defaulting party;

(e)           Indebtedness of any Subsidiary in
respect of capital leases, Synthetic Lease Obligations and purchase money
obligations for fixed or capital assets within the limitations set forth in Section
7.01(i);

(f)            unsecured Indebtedness associated
with normal subordinate Operating Expenses relating to the Real Estate
Projects, including, without limitation, the Asset Management Fee and the
Minority Interest Debt.

7.04        Fundamental Changes. 
Merge, dissolve, liquidate, consolidate with or into
another Person, or Dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to or in favor of any Person, except that, so long as no
Default exists or would result therefrom:

(a)           any Subsidiary may merge with (i) the
Borrower, provided that the Borrower shall be the continuing or
surviving Person, or (ii) any one or more other Subsidiaries, provided
that when any wholly-owned Subsidiary is merging with another Subsidiary, the
wholly-owned Subsidiary shall be the continuing or surviving Person; and

(b)           any Subsidiary may Dispose of all or
substantially all of its assets (upon voluntary liquidation or otherwise) to
the Borrower or to another Subsidiary; provided that if the transferor

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in such a
transaction is a wholly-Owned Subsidiary, then the transferee must either be
the Borrower or a wholly-owned Subsidiary; and

In addition,
Administrative Agent acknowledges that it has been informed that Borrower is
considering converting to an UPREIT structure which would involve transferring
its assets to a Subsidiary operating partnership (the “OP”). Notwithstanding
any provision to the contrary in this Agreement, Administrative Agent shall
approve any transfers by the Borrower to an OP in connection therewith upon the
following conditions:

(i) No Default or
Event of Default shall then be in existence;

(i) the OP assumes
all Obligations of the Borrower under the Loan Documents pursuant to
documentation acceptable to the Administrative Agent, with the Borrower
remaining liable for all Obligations under the Loan Documents (via guaranty or
other documentation acceptable to the Administrative Agent); and

(iii) the
Administrative Agent receives and approves, in its reasonable discretion,
customary due diligence with respect to the OP consistent with that delivered
with respect to the Borrower in connection with the closing of the Loan ,
including organizational documents and an opinion from counsel to the OP which
meets the requirements of Section 4.01(a)(v).

7.05        Dispositions.  Make
any Disposition or enter into any agreement to make any Disposition, except:

(a)           Dispositions of obsolete or worn out
property, whether now owned or hereafter acquired, in the ordinary course of
business;

(b)           Dispositions of inventory in the
ordinary course of business;

(c)           Dispositions of equipment or real
property to the extent that (i) such property is exchanged for credit against
the purchase price of similar replacement property or (ii) the proceeds of such
Disposition are reasonably promptly applied to the purchase price of such
replacement property;

(d)           Dispositions of property by any
Subsidiary to the Borrower or to a wholly-owned Subsidiary;

(e)           Dispositions permitted by Section
7.04; and

(g)           non-exclusive licenses of IP Rights
in the ordinary course of business and substantially consistent with past
practice for terms not exceeding five years.

Provided,
however, that notwithstanding anything herein to the contrary, the Borrower
shall not make (nor cause or permit any Subsidiary to make) any Disposition of
any ownership interest to and in any Project Level Entity or related Real
Estate Project to any Person for any reason whatsoever without the express
prior written consent, in each instance, of the Administrative Agent; provided
further, however, that such consent by the Administrative Agent shall not
be

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required so long
as each of the following conditions precedent are fully satisfied in the
reasonable determination of the Administrative Agent:

(i)            The Borrower shall have given the
Administrative Agent and the Lenders at least thirty (30) days’ prior written
notice of the intended Disposition respecting the subject Project Level Entity
or related Real Estate Project;

(ii)           No Default or Event of Default
(giving effect to the intended Disposition respecting the subject Project Level
Entity or related Real Estate Project) shall have then occurred and be
continuing;

(iii)          The Aggregate Value of the Borrowing
Base Real Estate (giving effect to the intended Disposition respecting the
subject Project Level Entity and exclusive of the related Real Estate Project
owned by the subject Project Level Entity) shall be at least One Hundred Fifty
Million Dollars ($150,000,000.00);

(iv)          Giving effect to the intended
Disposition respecting the subject Project Level Entity and exclusive of the
related Real Estate Project owned by the subject Project Level Entity, there
shall be at least ten (10) properties remaining which constitute Borrowing Base
Real Estate; and

(v)           Giving effect to the intended
Disposition respecting the subject Project Level Entity and exclusive of the
related Real Estate Project owned by the subject Project Level Entity, no
single remaining property which constitutes Borrowing Base Real Estate shall
account for more than thirty percent (30%) of the Aggregate Value of the
Borrowing Base Real Estate.

7.06        Restricted
Payments.  Declare or make, directly
or indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, or issue or sell any Equity Interests other than pursuant
to the Borrower’s Equity Offering, except
that, so long as no Default shall have occurred and be continuing at the time
of any action described below or would result therefrom:

(a)           each Subsidiary may make Restricted
Payments to the Borrower and any other Person that owns an Equity Interest in
such Subsidiary, ratably according to their respective holdings of the type of
Equity Interest in respect of which such Restricted Payment is being made;

(b)           the Borrower may declare and make the
Shareholders’ Dividend and each Subsidiary may declare and make the dividend
payments or other distributions payable in connection with the stock or other
Equity Interests of such Person;

(c)           the Borrower and each Subsidiary may
purchase, redeem or otherwise acquire Equity Interests issued by it with the
proceeds received from the substantially concurrent issue of new shares of its
common stock or other common Equity Interests;

(d)           the Borrower may make Permitted
Payments at any time; and

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(e)           the Borrower may issue and sell
shares of its common stock, so long as the Net Equity Proceeds thereof are
applied to the prepayment of the Loans pursuant to Section 2.05(b).

Notwithstanding
the foregoing, the Borrower shall be permitted to declare and make the
Shareholders Preferred Distribution notwithstanding the existence of any
Default or Event of Default hereunder. 
Further notwithstanding the foregoing, the Borrower shall be permitted
to cause its Subsidiaries to make payments required to be made to a Minority
Owner of a Subsidiary or Project Level Entity under such Subsidiary or Project
Level Entity’s Organizational Documents or Contractual Obligations at any time,
regardless of the existence of any Default or Event of Default hereunder.

7.07        Change in Nature of Business.  Engage in any material line
of business substantially different from those lines of business conducted by
the Borrower and its Subsidiaries on the date hereof, which consists of
investment in Real Estate Projects with residential and associated mixed uses,
or any business substantially related or incidental thereto.

7.08        Transactions with Affiliates.  Enter into any transaction
of any kind with any Affiliate of the Borrower, whether or not in the ordinary
course of business, other than on fair and reasonable terms substantially as
favorable to the Borrower or such Subsidiary as would be obtainable by the
Borrower or such Subsidiary at the time in a comparable arm’s length
transaction with a Person other than an Affiliate, provided that the foregoing
restriction shall not apply to transactions between or among the Borrower and
any of its wholly-owned Subsidiaries.

7.09        Burdensome Agreements. 
Enter into any Contractual Obligation (other than this
Agreement or any other Loan Document) that (a) limits the ability (i) of any
Subsidiary to make Restricted Payments to the Borrower or to otherwise transfer
property to the Borrower, (ii) of the Borrower to create, incur, assume or
suffer to exist Liens on property of such Person; provided, however,
that this clause (iii) shall not prohibit any negative pledge incurred or
provided in favor of any holder of Indebtedness permitted under Section
7.03(e) solely to the extent any such negative pledge relates to the property
financed by or the subject of such Indebtedness; or (b) requires the grant of a
Lien to secure an obligation of such Person if a Lien is granted to secure
another obligation of such Person.

7.10        Use
of Proceeds.  Use the proceeds of any
Credit Extension, whether directly or indirectly, and whether immediately,
incidentally or ultimately, to purchase or carry margin stock (within the
meaning of Regulation U of the FRB) or to extend credit to others for the
purpose of purchasing or carrying margin stock or to refund indebtedness
originally incurred for such purpose.

7.11         Financial Covenants.

(a)               AD/AV Ratio
Covenant.

(i)               AD/AV Ratio.  At all times, the ratio (“AD/AV Ratio”)
obtained by dividing: (i) the Aggregate Debt, by (ii) the Aggregate Value of the
Borrowing Base Real Estate, expressed as a percentage, shall not be greater
than eighty percent (80%).

(ii)            Certain Definitions.

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1)                   “Aggregate
Debt” shall mean the aggregate of (i) the outstanding principal balance of
the Loan (plus any unadvanced portion of each Lender’s Commitment) and the
aggregate undrawn stated amount of all then outstanding Letters of Credit  plus (ii) the
aggregate amount of all Borrowing Base Level Debt, all as reasonably determined
by the Administrative Agent.

2)                   “Aggregate
Value of the Borrowing Base Real Estate” shall mean $246,500,000.00 as
established pursuant to an as completed appraisal dated as of June, 2006
prepared by Cushman & Wakefield (“Original Appraisal”), respecting
the Borrowing Base Real Estate, which has been accepted by Administrative
Agent, as such Aggregate Value of the Borrowing Base Real Estate may hereafter
be changed by an Updated Appraisal.

3)                   “Borrowing
Base Level Debt” shall mean the aggregate of (i) the outstanding amount of
all Secured Mortgage Debt plus (ii) the amount of all Minority Interest
Debt, all as reasonably determined by the Administrative Agent.

4)                   “Secured
Mortgage Debt” shall mean the aggregate outstanding amount of all
Indebtedness secured by a mortgage, deed of trust, or other Lien encumbering
all or any portion of any Real Estate Project, as reasonably determined by the
Administrative Agent.

5)                   “Minority
Interest Debt” shall mean, with respect to any Real Estate Project, all
amounts that would be due to the Minority Owners, pursuant to the Organization
Documents establishing the subject Project Level Entity, upon the liquidation
sale of the subject Real Estate Project at an assumed liquidation price
equivalent to the applicable valuation amount used to determine Aggregate Value
of the Borrowing Base Real Estate, all as reasonably determined by the
Administrative Agent.

6)                   “Market Cap
Rate” shall mean the higher of (i) the annual rate of interest payable on
ten (10) year United States Treasury obligations plus one and one half
percent (1.50%) and (ii) six and one half percent (6.50%) per annum, as
reasonably determined by the Administrative Agent.

(iii)            The Aggregate Value of
the Borrowing Base Real Estate shall be updated on or before January 1, 2008
either (i) pursuant to an update of the Original Appraisal in the same format
and with the same limited scope as the Original Appraisal (each, and “Updated
Appraisal”), or (ii) an updated valuation based upon the application of the
Market Cap Rate to the trailing twelve (12) month Net Operating Income of the
Borrowing Base Real Estate, as reasonably determined by the Administrative
Agent.

(iv)           Principal
Reduction.  If at any time the AD/AV
Ratio is not satisfied, Borrower shall within ten (10) Business Days following
Administrative Agent’s notice thereof make a principal payment in an amount
sufficient to reduce the AD/AV Ratio to not more than eighty percent
(80%).  It shall be an Event of Default
if such payment is not so made.

(b)              Debt Service
Coverage Ratio.

(i)               Certain
Definitions.

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1)                   “Calculation
Date” shall mean the last day of each calendar quarter commencing with
December 31, 2006.

2)                   “Calculation
Period” shall mean each successive three (3) month period ending on a
Calculation Date.

3)                   “Debt
Service Coverage” shall mean the ratio for the Calculation Period of:  (A) Net Operating Income to (B) Aggregate
Debt Service.

4)                   “Net
Operating Income” shall mean all revenues derived from the ownership and
operation, in the aggregate, of the Real Estate Projects and the interim
investment of accumulated funds minus all Operating Expenses, based upon the
calendar quarter just ended for the Calculation Period, annualized, as
reasonably determined by the Administrative Agent.

5)                   “Operating
Expenses” shall mean expenditures of all kinds made with respect to the
operation, in the aggregate, of the Real Estate Projects in the normal course
of business including, but not limited to, expenditures for taxes, insurance,
repairs, replacements, maintenance, management fees, salaries, advertising
expenses, professional fees, wages and utility costs, amounts payable with
respect to the applicable Real Estate Projects under or with respect to any
Permitted Liens and reasonable additions to, or creations of, reserves for
repairs and replacements and for capital expenditures required to comply with
requirements under any applicable Laws or Contractual Obligations, but
expressly excluding: (a) any debt service on the Loan and on the Secured
Mortgage Debt, and (b) expenditures made out of reserves previously created.  Any expenditures which in accordance with the
accrual basis income tax accounting are depreciated or amortized over a period
which exceeds one (1) year shall be treated as an expenditure, for the purposes
of the foregoing calculations, ratably over the period of depreciation or
amortization.  Residential security
deposits received and deposited in separate escrow accounts pursuant to
applicable Laws shall not be included an revenue unless and until the
applicable Project Level Entity becomes entitled to retain the same as a result
of a tenant breach, and the repayment of such escrow deposits to residential
tenants shall not be treated as an expense. Security deposits received from
non-residential tenants during any Calculation Period shall be treated as income
upon receipt and as an expense upon return to the tenant unless the same are
hold in a separate escrow account in which event receipt and disbursement shall
be treated in the same manner as residential security deposits received.

6)                   “Aggregate
Debt Service” shall mean the aggregate of (a) as to the Secured Mortgage
Debt,  the annual amount of principal and
interest payable on a hypothetical loan in an amount equal to the Secured
Mortgage Debt, based upon a thirty (30) annual amortization schedule and a per
annum  interest rate equal to the actual
blended interest rates then in effect for the Secured Mortgage Debt, plus (b)
as to the Loan, the annual amount of principal and interest payable on a
hypothetical loan in an amount equal to the Total Outstandings based upon a
thirty (30) year annual amortization schedule and a per annum  interest rate equal to the Deemed Rate of
Interest.

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7)                   “Deemed Rate
of Interest” shall mean the higher of (i) the annual rate of interest
payable on the relevant Calculation Date (that is, the last day of the
applicable Calculation Period) on ten (10) year United States Treasury
obligations in amounts approximating the Total Outstandings at the inception of
the Calculation Period plus one and one half percent (1.50%) and (ii) an
interest rate of six percent (6%) per annum.

(ii)            DSC Covenant.  The Debt Service Coverage for each
Calculation Period determined on each Calculation Date shall be not less than
1.20:1.  If such Debt Service Coverage
covenant shall not be satisfied on any Calculation Date, Borrower shall prepay
a sufficient amount of principal outstanding on the Loan such that if such
principal reduction had been made on the first day of the Calculation Period
the Debt Service Coverage covenant would have been satisfied.  It shall be an Event of Default if Borrower
fails to make such a prepayment not later than the first to occur of: (i) ten
(10) Business Days after notice from Administrative Agent to Borrower properly
requesting the payment, or (ii) if Borrower has failed to give Administrative
Agent and each of the Lenders sufficient reports to enable Administrative Agent
to make the necessary calculations, forty-five (45) days following the
applicable Calculation Date.

ARTICLE
VIII.

EVENTS OF DEFAULT AND REMEDIES

8.01        Events of Default. 
Any of the following shall constitute an Event of
Default:

(a)           Non-Payment.  The Borrower fails to pay (a) any amount of
principal of any Loan or any L/C Obligation, any interest on any Loan or on any
L/C Obligation within five (5) Business Days of when due hereunder, or (b) any
fee due hereunder, or any other amount payable hereunder or under any other
Loan Document within ten (10) Business Days after notice from Lender that the
same is due, or the Borrower fails to pay the entire outstanding balance of the
Loan upon the Maturity Date; or

(b)           Specific Covenants.  The Borrower fails to perform or observe any
term, covenant or agreement contained in any of Section 6.01, 6.02,
6.03, 6.07, 7.01, 7.02, 7.03, 7.04, 7.05,
7.06 or 7.11 and such failure continues for ten (10) Business
Days after the written notice from the Administrative Agent of such matter; or

(c)           Other Defaults.  The Borrower fails to perform or observe any
other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days, or, if Borrower has within such thirty (30) day
period commenced to cure and diligently thereafter prosecuted a cure of such
matter, an additional period of up to sixty (60) days in the aggregate; or

(d)           Representations and Warranties.  Any representation, warranty, certification
or statement of fact made or deemed made by or on behalf of the Borrower
herein, in any other Loan Document, or in any document delivered in connection
herewith or therewith shall be incorrect or misleading when made or deemed made
and Borrower shall not have cured the

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applicable matter
within thirty (30) days following notice from the Administrative Agent of such
matter; or

(e)           Cross-Default.  There occurs under any Swap Contract with the
Administrative Agent an Early Termination Date (as defined in such Swap
Contract) resulting from (A) any event of default under such Swap Contract as
to which the Borrower or any Subsidiary is the Defaulting Party (as defined in
such Swap Contract) or (B) any Termination Event (as so defined) under such
Swap Contract as to which the Borrower or any Subsidiary is an Affected Party
(as so defined) and, in either event, the Swap Termination Value owed by the
Borrower or such Subsidiary as a result thereof is greater than the Threshold
Amount; or

(f)            Insolvency Proceedings, Etc.  The Borrower or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or any proceeding under any
Debtor Relief Law relating to any such Person or to all or any material part of
its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered
in any such proceeding; or

(g)           Inability to Pay Debts; Attachment.  (i) The Borrower or any Subsidiary becomes
unable or admits in writing its inability or fails generally to pay its debts
as they become due, or (ii) any writ or warrant of attachment or execution or
similar process is issued or levied against all or any material part of the
property of any such Person and is not released, vacated or fully bonded within
30 days after its issue or levy; or

(h)           Judgments.  There is entered against the Borrower or any
Subsidiary (i) a final judgment or order for the payment of money in an
aggregate amount exceeding the Threshold Amount (to the extent not covered by
independent third-party insurance as to which the insurer does not dispute
coverage), or (ii) any one or more non-monetary final judgments that have, or
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect and, in either case, (A) enforcement proceedings are
commenced by any creditor upon such judgment or order, or (B) there is a period
of 10 consecutive days during which a stay of enforcement of such judgment, by
reason of a pending appeal or otherwise, is not in effect; or

(i)            ERISA.  (i) An ERISA Event occurs with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of the Borrower under Title IV of ERISA to
the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in
excess of the Threshold Amount, or (ii) the Borrower or any ERISA Affiliate
fails to pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold
Amount; or

(j)            Invalidity of Loan Documents.  Any provision of any Loan Document, at any
time after its execution and delivery and for any reason other than as
expressly permitted

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hereunder or
thereunder or satisfaction in full of all the Obligations, ceases to be in full
force and effect; or the Borrower or any other Person contests in any manner
the validity or enforceability of any provision of any Loan Document; or the Borrower denies that
it has any or further liability or obligation under any Loan Document, or
purports to revoke, terminate or rescind any provision of any Loan Document;

(k)           Change of Control.  There occurs any Change of Control;

8.02        Remedies
Upon Event of Default.  If any Event of Default
occurs and is continuing, the Administrative Agent shall, at the request of, or
may, with the consent of, the Required Lenders, take any or all of the
following actions:

(a)           declare the commitment of each Lender
to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions to be terminated, whereupon such commitments and obligation shall be
terminated;

(b)           declare the unpaid principal amount
of all outstanding Loans, all interest accrued and unpaid thereon, and all
other amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrower;

(c)           require that the Borrower Cash
Collateralize the L/C Obligations (in an amount equal to the then Outstanding
Amount thereof); and

(d)           exercise on behalf of itself and the
Lenders all rights and remedies available to it and the Lenders under the Loan
Documents;

provided,
however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans and any obligation
of the L/C Issuer to make L/C Credit Extensions shall automatically terminate,
the unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as
aforesaid shall automatically become effective, in each case without further
act of the Administrative Agent or any Lender.

8.03        Application
of Funds.  After the exercise of
remedies provided for in Section 8.02 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have
automatically been required to be Cash Collateralized as set forth in the
proviso to Section 8.02), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of
counsel to the Administrative Agent and amounts payable under Article III)
payable to the Administrative Agent in its capacity as such;

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Second,
to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and Letter of Credit Fees)
payable to the Lenders and the L/C Issuer (including fees, charges and
disbursements of counsel to the respective Lenders and the L/C Issuer
(including fees and time charges for attorneys who may be employees of any
Lender or the L/C Issuer) and amounts payable under Article III),
ratably among them in proportion to the respective amounts described in this
clause Second payable to them;

Third,
to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings and other
Obligations, ratably among the Lenders and the L/C Issuer in proportion to the
respective amounts described in this clause Third payable to them;

Fourth,
on a pro rata basis, (a) to payment of that portion of the Obligations
constituting unpaid principal of the Loans and L/C Borrowings, ratably among
the Lenders and the L/C Issuer in proportion to the respective amounts
described in this clause Fourth held by them, and (b) to any Lender on
account of any Obligations arising pursuant to any Swap Contracts;

Fifth,
to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit;

Last,
the balance, if any, after all of the Obligations have been indefeasibly paid
in full, to the Borrower or as otherwise required by Law.

Subject to Section
2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of
Letters of Credit pursuant to clause Fifth above shall be applied to
satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash
Collateral after all Letters of Credit have either been fully drawn or expired,
such remaining amount shall be applied to the other Obligations, if any, in the
order set forth above.

ARTICLE
IX.                ADMINISTRATIVE AGENT

9.01        Appointment
and Authority.

Each
of the Lenders and the L/C Issuer hereby irrevocably appoints Wachovia 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, the Lenders and the L/C Issuer, and the Borrower shall not have rights
as a third party beneficiary of any of such provisions.

9.02        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.

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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.

9.03        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.

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 10.01 and 8.02) or (ii) in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrower, a Lender or the
L/C Issuer.

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 IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

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9.04        Reliance
by Administrative Agent.

The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying 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, or
the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the L/C Issuer, the Administrative Agent may
presume that such condition is satisfactory to such Lender or the L/C Issuer
unless the Administrative Agent shall have received notice to the contrary from
such Lender or the L/C Issuer prior to the making of such Loan or the issuance
of such Letter of Credit.  The
Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), 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.

9.05        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 Document by or through any one or more sub-agents
appointed by the Administrative Agent. 
The Administrative Agent and any such sub-agent may perform any
and all of its duties and exercise its rights and powers by or through their
respective Related Parties.  The
exculpatory provisions of this Article shall apply to any such sub-agent
and to the Related Parties of the Administrative Agent and any such sub-agent,
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

9.06        Resignation
of Administrative Agent.  The Administrative Agent
may at any time give notice of its resignation to the Lenders, the L/C Issuer
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 within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may on behalf of the Lenders and the L/C Issuer, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided
that if the Administrative Agent shall notify the Borrower and the Lenders that
no qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the L/C
Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall 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

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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.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.04 shall
continue in effect for the benefit of such retiring 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 Administrative
Agent was acting as Administrative Agent.

Any
resignation by Wachovia as Administrative Agent pursuant to this Section shall
also constitute its resignation as L/C Issuer. 
Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring L/C Issuer, (b) the
retiring L/C Issuer shall be discharged from all of their respective duties and
obligations hereunder or under the other Loan Documents, and (c) the successor
L/C Issuer shall issue letters of credit in substitution for the Letters of
Credit, if any, outstanding at the time of such succession or make other
arrangements satisfactory to the retiring L/C Issuer to effectively assume the
obligations of the retiring L/C Issuer with respect to such Letters of Credit.

9.07        Non-Reliance
on Administrative Agent and Other Lenders.  Each Lender and the L/C
Issuer 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 and the L/C Issuer 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.

9.08        No
Other Duties, Etc.  Anything herein to the
contrary notwithstanding, none of the Bookrunners or Arrangers, as now or
hereafter may be applicable, 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, a Lender or the L/C
Issuer hereunder.

9.09        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 of its Subsidiaries, the Administrative Agent (irrespective
of whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the 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, L/C Obligations and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have
the claims of the Lenders, the L/C Issuer and the Administrative Agent

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(including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Lenders, the L/C Issuer and the Administrative Agent and their respective
agents and counsel and all other amounts due the Lenders, the L/C Issuer and
the Administrative Agent under Sections 2.03(i) and (j), 2.09
and 10.04) 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 and the L/C
Issuer 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 and the L/C Issuer, 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 2.09 and 10.04.

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 or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

ARTICLE
X.

MISCELLANEOUS

10.01      Amendments, Etc. 
No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by the
Borrower therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower and acknowledged by the Administrative Agent, and each
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that no
such amendment, waiver or consent shall:

(a)           waive any condition set forth in Section
4.01(a) without the written consent of each Lender;

(b)           extend or increase the Commitment of
any Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

(c)           postpone any date fixed by this
Agreement or any other Loan Document for any payment or mandatory prepayment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
or any scheduled or mandatory reduction of the Aggregate Commitments hereunder
or under any other Loan Document without the written consent of each Lender
directly affected thereby;

(d)           reduce the principal of, or the rate
of interest specified herein on, any Loan or L/C Borrowing, or (subject to
clause (iv) of the second proviso to this Section 10.01) any fees or

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other amounts
payable hereunder or under any other Loan Document, or change the manner of
computation of any financial ratio (including any change in any applicable
defined term) used in determining the Applicable Rate that would result in a
reduction of any interest rate on any Loan or any fee payable hereunder without
the written consent of each Lender directly affected thereby; provided, however,
that only the consent of the Required Lenders shall be necessary (i) to amend
the definition of “Default Rate” or to waive any obligation of the Borrower to
pay interest or Letter of Credit Fees at the Default Rate or (ii) to amend any
financial covenant hereunder (or any defined term used therein) even if the
effect of such amendment would be to reduce the rate of interest on any Loan or
L/C Borrowing or to reduce any fee payable hereunder;

(e)           change Section 2.13 or Section
8.03 in a manner that would alter the pro rata sharing of payments required
thereby without the written consent of each Lender; or

(f)            change any provision of this Section
or the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent
hereunder without the written consent of each Lender;

and, provided
further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above,
affect the rights or duties of the L/C Issuer under this Agreement or any
Issuer Document relating to any Letter of Credit issued or to be issued by it
and (ii) intentionally omitted; (iii) no amendment, waiver or consent shall,
unless in writing and signed by the Administrative Agent in addition to the
Lenders required above, affect the rights or duties of the Administrative Agent
under this Agreement or any other Loan Document; and (iv) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto.  Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any 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.

10.02      Notices; Effectiveness; Electronic
Communication.

(a)           Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopier as follows, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

(i)            if to the Borrower, the
Administrative Agent or the L/C Issuer, to the address, telecopier number,
electronic mail address or telephone number specified for such Person on Schedule
10.02; and

(ii)           if to any other Lender, to the
address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

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Notices sent by
hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier
shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at
the opening of business on the next business day for the recipient).  Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall be
effective as provided in such subsection (b).

(b)           Electronic Communications.  Notices and other communications to the
Lenders and the L/C Issuer hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet
websites) pursuant to procedures approved by the Administrative Agent, provided
that the foregoing shall not apply to notices to any Lender or the L/C Issuer
pursuant to Article II if such Lender or the L/C Issuer, as applicable,
has notified the Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. 
The Administrative Agent or the Borrower may, in its discretion, agree
to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it, provided that
approval of such procedures may be limited to particular notices or
communications.

Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address
therefor.

(c)           The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER
MATERIALS OR THE PLATFORM.  In no event
shall the Administrative Agent or any of its Related Parties (collectively, the
“Agent Parties”) have any liability to the Borrower, any Lender, the L/C
Issuer or any other Person for losses, claims, damages, liabilities or expenses
of any kind (whether in tort, contract or otherwise) arising out of the
Borrower’s or the Administrative Agent’s transmission of Borrower Materials
through the Internet, except to the extent that such losses, claims, damages,
liabilities or expenses are determined by a court of competent jurisdiction by
a final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender, the L/C Issuer or any other

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Person for
indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages).

(d)           Change of Address, Etc.  Each of the Borrower, the Administrative
Agent, and the L/C Issuer may change its address, telecopier or telephone
number for notices and other communications hereunder by notice to the other
parties hereto.  Each other Lender may
change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Borrower, the Administrative Agent, and the L/C
Issuer.  In addition, each Lender agrees
to notify the Administrative Agent from time to time to ensure that the
Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

(e)           Reliance by Administrative Agent,
L/C Issuer and Lenders.  The Administrative Agent, the L/C
Issuer and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Committed Loan Notices) purportedly given by or on behalf
of the Borrower even if (i) such notices were not made in a manner specified
herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof.  The Borrower shall indemnify the
Administrative Agent, the L/C Issuer, each Lender and the Related Parties of
each of them from all losses, costs, expenses and liabilities resulting from
the reliance by such Person on each notice purportedly given by or on behalf of
the Borrower.  All telephonic notices to
and other telephonic communications with the Administrative Agent may be
recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

10.03      No
Waiver; Cumulative Remedies.  No failure by any Lender,
the L/C Issuer or the Administrative Agent to exercise, and no delay by any
such Person in exercising, any right, remedy, power or privilege hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

10.04      Expenses; Indemnity; Damage Waiver.

(a)           Costs and Expenses.  The Borrower shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates (including the reasonable fees, charges and disbursements of counsel
for the Administrative Agent), in connection with the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan
Documents or any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions contemplated hereby or thereby
shall be consummated), (ii) all reasonable out-of-pocket expenses incurred
by the L/C Issuer in connection with the issuance, amendment, renewal or
extension of any Letter of Credit or any demand for payment thereunder and
(iii) all out-of-pocket expenses incurred by the Administrative Agent, any
Lender or the L/C Issuer (including the fees, charges and disbursements of any
counsel for the Administrative Agent, any Lender or the L/C Issuer), in
connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents,

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including its
rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit.

(b)           Indemnification by the Borrower.  The Borrower shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the L/C
Issuer, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related
expenses (including the fees, charges and disbursements of any counsel for any
Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by
any third party or by the Borrower or any Subsidiary arising out of, in
connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder, the consummation of the transactions
contemplated hereby or thereby, or, in the case of the Administrative Agent
(and any sub-agent thereof) and its Related Parties only, the administration of
this Agreement and the other Loan Documents, (ii) any Loan or Letter of
Credit or the use or proposed use of the proceeds therefrom (including any
refusal by the L/C Issuer to honor a demand for payment under a Letter of
Credit if the documents presented in connection with such demand do not
strictly comply with the terms of such Letter of Credit), (iii) any actual
or alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the
Borrower or any Subsidiary, and regardless of whether any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction
by final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of such Indemnitee or (y) result from a claim
brought by the Borrower against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, if the
Borrower has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction.

(c)           Reimbursement by Lenders.  To the extent that the Borrower for any
reason fails to indefeasibly pay any amount required under subsection (a)
or (b) of this Section to be paid by it to the Administrative Agent (or
any sub-agent thereof), the L/C Issuer or any Related Party of any of the
foregoing, each Lender severally agrees to pay to the Administrative Agent (or
any such sub-agent), the L/C Issuer or such Related Party, as the case may be,
such Lender’s Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred
by or asserted against the Administrative Agent (or any such sub-agent) or the
L/C Issuer in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent) or L/C
Issuer in connection with such capacity. 
The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.12(d).

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(d)           Waiver of Consequential Damages,
Etc.  To the fullest extent permitted
by applicable law, the Borrower shall not assert (and shall not permit any
Subsidiary to assert), and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of, this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby, the transactions contemplated
hereby or thereby, any Loan or Letter of Credit or the use of the proceeds
thereof.  No Indemnitee referred to in
subsection (b) above shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it
through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby.

(e)           Payments.  All amounts due under this Section shall be
payable not later than ten Business Days after demand therefor.

(f)            Survival.  The agreements in this Section shall survive
the resignation of the Administrative Agent and the L/C Issuer, the replacement
of any Lender, the termination of the Aggregate Commitments and the repayment,
satisfaction or discharge of all the other Obligations.

10.05      Payments
Set Aside. 
To the extent that any payment by or on behalf of the
Borrower is made to the Administrative Agent, the L/C Issuer or any Lender, or
the Administrative Agent, the L/C Issuer or any Lender exercises its right of
setoff, and such payment or the proceeds of such setoff or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by the
Administrative Agent, the L/C Issuer or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of
such recovery, the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred, and (b) each Lender
and the L/C Issuer severally agrees to pay to the Administrative Agent upon
demand its applicable share (without duplication) of any amount so recovered
from or repaid by the Administrative Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to
the Federal Funds Rate from time to time in effect.  The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the payment in
full of the Obligations and the termination of this Agreement.

10.06      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 the Borrower
may not 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

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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, the L/C Issuer
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
(including for purposes of this subsection (b), participations in L/C
Obligations) 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, 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); provided, however,
that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met;

(ii)           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;

(iii)          any assignment of a Commitment must be
approved by the Administrative Agent and the L/C Issuer 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);

(iv)          the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee in the amount, if any, required
as set forth in Schedule 10.06, and the Eligible Assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent and Borrower an
Administrative Questionnaire; and

(v)           Wachovia shall retain at least
$10,000,000 of the Commitments so long as no Event of Default has occurred.

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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 3.01, 3.04, 3.05,
and 10.04 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 to the
assignee Lender.  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 and L/C Obligations owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, 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 each of the Borrower
and the L/C Issuer 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 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 or
any of the Borrower’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
(including such Lender’s participations in L/C Obligations) 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 and the L/C Issuer shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement.

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 10.01 that
affects such Participant.  Subject to
subsection (e) of this Section, the

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Borrower agrees
that each Participant shall be entitled to the benefits of Sections 3.01,
3.04 and 3.05 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 10.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.13 as though it were
a Lender.

(e)           Limitations upon Participant
Rights.  A Participant shall not be
entitled to receive any greater payment under Section 3.01 or 3.04 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 Lender if it were a Lender shall not
be entitled to the benefits of Section 3.01 unless the Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 3.01(e)
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, if any) 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 as L/C Issuer after
Assignment.  Notwithstanding anything
to the contrary contained herein, if at any time Wachovia assigns all of its
Commitment and Loans pursuant to subsection (b) above, Wachovia may, (i) upon
30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer.  In the event of any such resignation as L/C
Issuer, the Borrower shall be entitled to appoint from among the Lenders a
successor L/C Issuer hereunder; provided, however, that no
failure by the Borrower to appoint any such successor shall affect the
resignation of Wachovia as L/C Issuer. 
If Wachovia resigns as L/C Issuer, it shall retain all the rights,
powers, privileges and duties of the L/C Issuer hereunder with respect to all
Letters of Credit outstanding as of the effective date of its resignation as
L/C Issuer and all L/C Obligations with respect thereto (including the right to
require the Lenders to make Committed Loans or fund risk participations in
Unreimbursed Amounts pursuant to Section 2.03(c)).  Upon the appointment of a successor L/C
Issuer, (a) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring L/C Issuer, as the case
may be, and (b) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory

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to Wachovia to
effectively assume the obligations of Wachovia with respect to such Letters of
Credit.

10.07      Treatment of Certain Information; Confidentiality.  Each of the Administrative
Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed
(a) to its Affiliates and to its and its Affiliates’ respective partners,
directors, officers, employees, agents, advisors and representatives (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with
the consent of the Borrower or (h) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or (y)
becomes available to the Administrative Agent, any Lender, the L/C Issuer or
any of their respective Affiliates on a nonconfidential basis from a source
other than the Borrower.

For purposes of this Section, “Information”
means all information received from the Borrower or any Subsidiary relating to
the Borrower or any Subsidiary or any of their respective businesses, other
than any such information that is available to the Administrative Agent, any
Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the
Borrower or any Subsidiary, provided that, in the case of information
received from the Borrower or any Subsidiary after the date hereof, such
information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

Each of the Administrative Agent, the Lenders and the
L/C Issuer acknowledges that (a) the Information may include material
non-public information concerning the Borrower or a Subsidiary, as the case may
be, (b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public
information in accordance with applicable Law, including Federal and state
securities Laws.

10.08      Right
of Setoff.  If an Event of Default
shall have occurred and be continuing, each Lender, the L/C Issuer and each of
their respective Affiliates is hereby authorized at any time and from time to
time, after obtaining the prior written consent of the Administrative Agent, to
the fullest extent permitted by applicable law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in
whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Lender, the L/C Issuer or any such

 82
 

 

 

Affiliate to or
for the credit or the account of the Borrower against any and all of the
obligations of the Borrower now or hereafter existing under this Agreement or
any other Loan Document to such Lender or the L/C Issuer, irrespective of
whether or not such Lender or the L/C Issuer shall have made any demand under
this Agreement or any other Loan Document and although such obligations of the
Borrower may be contingent or
unmatured or are owed to a branch or office of such Lender or the L/C Issuer
different from the branch or office holding such deposit or obligated on such
indebtedness.  The rights of each Lender,
the L/C Issuer and their respective Affiliates under this Section are in
addition to other rights and remedies (including other rights of setoff) that
such Lender, the L/C Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer agrees to
notify the Borrower and the Administrative Agent promptly after any such setoff
and application, provided that the failure to give such notice shall not
affect the validity of such setoff and application.

10.09      Interest Rate Limitation.  Notwithstanding anything to
the contrary contained in any Loan Document, the interest paid or agreed to be
paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

10.10      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 Section 4.01, 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.

10.11      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 any Credit Extension, and
shall continue in full force and effect as long as any Loan or

 83
 

 

 

any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

10.12      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.

10.13      Replacement of Lenders. 
If any Lender requests compensation under Section
3.04, 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
3.01, 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 with and subject to the
restrictions contained in, and consents required by, Section 10.06), 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 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 10.06(b);

(b)           such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 3.05) 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
3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter; and

(d)           such
assignment does not conflict with applicable Laws.

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.

10.14      Governing
Law; Sealed Instrument; Jurisdiction; Etc.

(a)           GOVERNING
LAW; SEALED INSTRUMENT.  THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE COMMONWEALTH OF MASSACHUSETTS AND SHALL TAKE EFFECT AS A SEALED INSTRUMENT.

 84

 

(b)           SUBMISSION TO JURISDICTION.  THE BORROWER IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE COMMONWEALTH OF MASSACHUSETTS SITTING IN SUFFOLK COUNTY AND OF
THE UNITED STATES DISTRICT COURT OF THE FIRST CIRCUIT, AND ANY APPELLATE COURT
FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH MASSACHUSETTS STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW.  NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST THE BORROWER, ITS SUBSIDIARIES, 
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

(c)           WAIVER
OF VENUE.  THE BORROWER IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS
SECTION.  EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

(d)           SERVICE
OF PROCESS.  EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 10.02.  NOTHING IN
THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

10.15      Waiver
of Jury Trial.  EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND

 85
 

 

 

(B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

10.16      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.

10.17       Time of the Essence.  Time is of the essence of the Loan Documents.

10.18       ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.

10.19      RECOURSE.

Lender’s recourse
under this Agreement and the other Loan Documents shall be limited to the assets
of the Borrower and none of Borrower’s officers, directors, agents, or
employees shall have any recourse or liability whatsoever in connection with
the this Agreement or the other Loan Documents.

 86

 

IN
WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as a sealed instrument as of the date first above
written.

	
  

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  BOSTON CAPITAL REAL ESTATE

  INVESTMENT TRUST, INC., a Maryland

  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey H. Goldstein

  
	
   

  	
  Name:

  	
  Jeffrey H. Goldstein

  
	
   

  	
  Title:

  	
  President and Chief
  Operating Officer

  
					

 

 1
 

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter D. Leahy

  
	
   

  	
  Name: PETER D. LEAHY

  
	
   

  	
  Title: SENIOR VICE
  PRESIDENT

  

 

 2
 

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as a Lender and
  L/C Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter D. Leahy

  
	
   

  	
  Name: PETER D. LEAHY

  
	
   

  	
  Title: SENIOR VICE
  PRESIDENT

  

 

 3Prepared and filed by St Ives Financial

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made as of the 6th day of December, 2006 (the “Execution Date”) by and between Brandywine Operating Partnership, L.P., a Delaware limited partnership (the “Company”) and Howard M. Sipzner (the “Employee”).

WHEREAS, the Company desires to employ the Employee, and the Employee desires to be employed by the Company, upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, and intending to be legally bound, the parties, subject to the terms and conditions set forth herein, agree as follows:

1. Employment and Term. The Company hereby employs the Employee and the Employee hereby accepts employment with the Company for the period commencing on the first day of employment (the “Effective Date”) and, unless such employment is sooner terminated as provided herein, terminating at 5:00 p.m. on the third (3rd) anniversary of the Effective Date. Such three-year period of employment as the same may be reduced as provided herein upon an earlier termination of the Employee’s employment, is referred to herein as the “Term.” At the end of the Term (and at the end of each and every one-year anniversary following the Term as the case may be), the Employee’s employment with the Company shall
automatically continue thereafter for a period of one year, unless the Company gives at least 120 days advance written notice to the Employee prior to the expiration of the Term (or the expiration of the then applicable one-year term of renewal) that the Company will not renew this Employment Agreement or that the Employee’s employment with the Company is terminated.

2. Duties. The Employee shall serve the Company as its Executive Vice President and Chief Financial Officer (the “Position”). The Employee shall report to the Company’s Chief Executive Officer, currently Gerard H. Sweeney. The Employee shall serve the Company faithfully and to the best of his ability and shall devote his full work time, attention, skill, and efforts to the performance of the duties required by and appropriate for the Position. The Employee shall perform such specific duties and responsibilities within the scope of the Position as may be reasonably assigned to him from time to time by the Company. The Employee agrees to comply with all Company policies in effect from time to time and to comply with all laws, rules, and regulations, including, without limitation, those
applicable to the Company.

3. Location. The Employee shall maintain a home office in the Company’s Radnor, Pennsylvania office. However, the Employee acknowledges that in order to effectively perform his duties, he will occasionally be required to travel for business purposes. In addition, the Company will provide the Employee a private parking space at the Company’s Cira Centre property.

4. Compensation. The Company shall pay the Employee, and the Employee hereby agrees to accept, as compensation for all services to be rendered to the Company the compensation set forth in this Section 4 of this Agreement.

4.1 Salary. The Company shall pay the Employee an initial annual base salary of Three Hundred Eighty-Five Thousand Dollars ($385,000.00). The Employee will be subject to annual performance reviews and base compensation adjustments commensurate with the Company’s standard practices for its senior officers. The Employee’s first performance review will occur in the first quarter of 2008 covering the Employee’s 2007 performance.

4.2 Annual Incentive Compensation/Bonus. The Employee shall be eligible for annual incentive compensation as determined by the Compensation Committee of the Board (the “Compensation Committee”) taking into account the recommendation of the Chief Executive Officer, payable each year of employment in such amounts as may be determined and approved by the Compensation Committee. The Employee shall be entitled to receive such cash bonuses, performance share awards and options to purchase common shares, par value $0.01 per share, of the Company (the “Common Shares”) as the Board or the Compensation Committee as the case may be shall approve, in its sole discretion, including, without limitation, options, performance share awards and cash bonuses contingent upon the Employee’s
performance and the achievement of specified financial and operating objectives during each year or other applicable period.

For each year during the Term, the Employee’s total eligible incentive compensation target award shall be the sum of and applicable to and payable in each of (x) a cash bonus between 80% and 110% of the Employee’s annual base salary and (y) performance shares and/or options with a fair market value at the time of grant equal to between 80% and 110% of the Employee’s annual base salary.

Except as otherwise provided herein, in order to receive any incentive compensation payments payable pursuant to this Section, the Employee must be actively employed by the Company on the date on which such incentive compensation payments scheduled to be paid to participants in the plan.

4.3 Performance Shares Pursuant to the Amended and Restated 1997 Long-Term Incentive Plan of Brandywine Realty Trust (the “1997 Plan”), the Employee will be awarded a number of performance shares equal to Six Hundred Thousand Dollars ($600,000.00) divided by the thirty (30) day trailing average closing price of the Company’s common shares on the NYSE prior to and including the Execution Date (collectively, the “Performance Shares”), and such shares shall be issued within sixty (60) days following the Effective Date and shall vest ratably over a five year period starting on the Effective Date in accordance with the form of Performance Share Award Agreement between the Company and the Employee attached hereto as Attachment A.

4.4 Outperformance Plan. Pursuant to the Brandywine Realty Trust 2006 Long-Term Outperformance Compensation Program (“OPP”), the Employee will be granted an Award under the OPP as of the Effective Date having an Award Percentage equal to 4.5%. A form of the Award together with a copy of the OPP is attached hereto as Attachment B.

 

4.5 Deferred Compensation Plan. The Employee shall be entitled to participate in the Company’s deferred compensation plan(s) (or any successor plan) in accordance with and subject to the terms and limitations of such plan(s).

4.6 Benefits. The Employee shall be eligible for medical and dental benefits, short and long term disability coverage and life insurance benefits that the Company provides generally for its executive officers in accordance with the terms of the respective plans; provided, however, that nothing herein shall be deemed to require the Company to adopt or maintain any particular plan or policy. To the extent the Employee maintains his own disability policy, then the Company shall reimburse the Employee for the premium costs during the Term of this agreement.

4.7 Automobile Allowance. In addition to the other benefits of this Section 4., the Employee will receive an annual automobile allowance of $8,400.00 (payable as $700.00 monthly during the tenure of employment).

4.8 Transition Signing Bonus. In addition to the other benefits of this Section 4., the Company will pay the Employee a transition signing bonus of Two Hundred Fifty Thousand Dollars ($250,000.00) within sixty (60) days after the Effective Date.

4.9 Vacation and Sick Days. The Employee shall receive four weeks paid vacation during each calendar year of employment. In addition, the Employee shall be entitled to take up to 10 days of sick leave per year; provided, however, that any prolonged illness resulting in absenteeism greater than the sick leave permitted herein or disability shall not constitute “Cause” for termination under the terms of this Agreement. In addition, the Employee will be entitled to designate up to 10 additional personal days per calendar year.

4.10 Reimbursement of Expenses. The Company shall reimburse Employee for all reasonable, ordinary and necessary business expenses incurred by the Employee during the Term in connection with the performance of the Employee’s duties hereunder in accordance with the Company’s regular reimbursement procedures and practices in effect from time to time, including providing a cellular phone, blackberry-like device, computers and other reasonable wireless electronic devices and computer-related equipment. The Company shall also reimburse the Employee for reasonable attorney’s fees heretofore incurred in connection with the review of this Agreement. 

4.11
  Payment. Payment of all compensation to Employee hereunder shall be made
  in accordance with the terms of this Agreement and applicable Company policies
  in effect from time to time, including normal payroll practices, and shall be
  subject to all applicable withholdings and taxes (collectively, “Taxes”).

5. Termination.

5.1 If the Company terminates the Employee’s employment for Cause (as defined in Section 5.3 of this Agreement), or the Company terminates the Employee’s employment at the end of the Term (or at the end of any one-year anniversary following the Term) or the Employee terminates the Employee’s employment at any time for a reason other than Good Reason (as defined in Section 5.3 of this Agreement), the Employee shall be entitled to salary accrued but unpaid as of the date of such termination, and the Employee shall no longer be entitled to receive any other payments, rights or benefits under this Agreement, and the Company shall not have any further obligation to the Employee pursuant to this Agreement, except as provided to the contrary under the terms of any benefit plan in which he participates and pursuant to any federal or state law regarding the continuation
of coverage under the Company’s group health plan. However, if the Company terminates the Employee’s employment at the end of the Term without Cause (or at the end of any one-year anniversary following the Term), then the Company shall pay to the Employee his pro-rata annual incentive compensation bonus of cash and shares earned up to the date of termination (and such shares will be fully vested when issued).

 

5.2 Except at provided in Section 5.1, if the Company terminates the Employee’s employment for a reason other than Cause (as defined in Section 5.3 of this Agreement), including death or disability, or the Employee terminates the Employee’s employment for Good Reason (as defined in Section 5.3 of this Agreement), then (x) the Company shall pay to the Employee salary accrued but unpaid as of the date of such termination and (y) the Company shall pay to the Employee as severance 1.50 times the sum of (i) the Employee’s then current annual base salary compensation, (ii) the Employee’s most recent annual incentive compensation cash bonus and (iii) the value of the Employee’s most recent annual incentive compensation share award (valued as of the date such shares were awarded).

Notwithstanding anything in Sections 5.1 or 5.2 to the contrary, if the Company terminates the Employee’s employment for a reason other than Cause (as defined in Section 5.3 of this Agreement), including death or disability, or the Employee terminates the Employee’s employment for Good Reason (as defined in Section 5.3 of this Agreement), then the unvested portion of the shares referred to in Section 4.3 above shall automatically become fully vested on the date of termination and, in addition, the Company shall issue to the Employee on a date which is the later of the Measurement Period Ending Date (as defined in the OPP) or the date of termination of employment, an amount of fully vested shares equal to the number of restricted shares the Employee would have been issued under the OPP pursuant to the OPP Award referred to in Section 4.4 above had the Employee remained employed with
the Company on the OPP Measurement Period Ending Date (as defined in the OPP) times that portion of the Measurement Period (as defined in the OPP) that the Employee was actually employed by the Company (and for this purpose only assuming the Employee began employment on the Measurement Period Commencement Date, as defined in the OPP), less the portion of the Employee’s OPP Award referred to in Section 4.4 above that had previously vested and been issued to the Employee, if any.

5.3 The term “Cause” shall mean: (i) any material breach by the Employee of any of the terms or provisions of this Agreement which the Employee fails to cure within fifteen (15) days after written notice thereof has been provided to the Employee by the Company; or (ii) the Employee’s conviction on a felony or a crime involving moral turpitude or substance abuse; or (iii) the Employee’s misappropriation of funds. The term “Good Reason” shall mean: (i) the Company requiring the Employee’s relocation more than thirty (30) miles from the Employee’s primary office subsequent to the Effective Date, without such Employee’s consent; or (ii) a material adverse alteration in the nature of the Employee’s position such that a change in duties shall not be considered a material adverse alteration unless the duties are materially inconsistent
with the Employee’s duties at the time of the Effective Date; (iii) a change downward in title or a change downward in reporting; or (iv) the Employee is excluded from the Company’s (or upon a Change in Control, its successor’s) long term incentive plan or reduction by the Company of the Employee’s annual base salary or target bonus; or (v) an assignment of duties to the Employee that is materially inconsistent with the Employee’s job description at the time of the Effective Date.

 

5.4 In the event of a termination following a change-in-control, then in lieu of the payments provided herein the Employee shall receive the benefits equal to the amount set forth in and pursuant to the terms of the Form of Agreement attached hereto as Attachment C. 

5.5 The Employee shall have no obligation to mitigate the damages provided by this Section 5 by seeking substitute employment or otherwise and there shall be no offset of the payments or benefits set forth in this Section 5.

6. Confidential Information. The Employee acknowledges that, during the course of his employment with the Company, he will have access to information about the Company and/or its subsidiaries and their tenants, clients and suppliers, that is confidential and/or proprietary in nature, and that belongs to the Company and/or its subsidiaries. As such, at all times, both during the period of employment and thereafter, the Employee will hold in the strictest confidence, and not use or attempt to use except for the benefit of the Company and/or its subsidiaries, and not disclose to any other person or entity (without the prior written authorization of the Board) any confidential information. Notwithstanding anything contained in this Section 6, the Employee will be permitted to disclose any Confidential
Information to the extent required by validly-issued legal process or court order, provided that the Employee notifies the Company and/or its subsidiaries immediately of any such legal process or court order, to the extent practicable, in an effort to allow the Company and/or its subsidiaries to challenge such legal process or court order, if the Company and/or its subsidiaries so elects, prior to the Employee’s disclosure of any Confidential Information.

7. Restrictive Covenants.

7.1 The Employee agrees that, while he is employed and during the one-year period immediately following the termination of the Employee’s employment with the Company (or six months in the case of a termination by the Company of the Employee’s employment with the Company for reasons other than Cause), the Employee shall not directly or indirectly solicit, divert away, or attempt to divert away any commercial real estate business with the Company to another company, business, or individual. 

7.2 If the Company terminates the Employee’s employment for any reason or the Employee terminates his employment for any reason, then the Employee will not, during the one-year period immediately following the termination of the Employee’s employment with the Company, directly or indirectly (i) solicit, induce, or attempt to influence, any employee of the Company or any of its affiliates to terminate employment; or (ii) interfere with the relationship between the Company and its existing or prospective tenants, including without limitation encouraging a tenant to terminate, or elect not to renew, its lease with the Company; or (iii) interfere with the relationship between the Company and any service providers to the Company. For purposes of items (ii) and (iii) only of this Section 7.2, the one-year period shall be reduced to six months if the Company terminates the
Employee’s employment with the Company for reasons other than Cause.

 

 

7.3 The Employee acknowledges that the restrictions contained herein, in view of the nature of the business in which Employee has been engaged, are reasonable and necessary to protect the legitimate interest of the Company, and that any violation of these restrictions would result in irreparable injury to the Company. The Employee acknowledges that, in the event of a violation of any such restrictions, the Company shall be entitled to preliminary and permanent injunctive relief as well as an equitable accounting of all earnings, profits and other benefits arising from such violation which rights shall be cumulative and in addition to any other rights or remedies to which Company may be entitled.

8. Representations, Warranties and Covenants of the Employee.

8.1  The Employee represents and warrants to the Company that there are no restrictions, agreements or understandings to which the Employee is a party which would prevent or make unlawful the Employee’s execution of this Agreement or the Employee’s employment hereunder, or which is or would limit the performance by the Employee of the obligations hereunder.

8.2  The Employee covenants that in connection with his provision of services to the Company, he shall not breach any obligation (legal, statutory, contractual or otherwise) to any former employer or other person, including, but not limited to obligations relating to confidentiality and proprietary rights.

9.   Survival of Provisions. The provisions of this Agreement set forth in Sections 5.3, 6, 7, 11 and 16 hereof shall survive the termination of the Employee’s employment hereunder for the purposes provided for therein.

10. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Employee and their respective successors, executors, administrators, heirs and/or assigns; provided that the Employee shall not make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the Company. The Company agrees that its obligations under this Agreement are binding upon any successors or assigns.

11.  Assistance in Litigation. Employee shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of the Company that relate to events or occurrences that transpired while Employee was employed by the Company. Employee’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. Employee also shall cooperate fully with the Company in connection with any investigation or review by any federal, state, or local regulatory authority as any such investigation or review
relates to events or occurrences that transpired while Employee was employed by the Company. The Company will pay Employee a reasonable hourly rate for Employee’s cooperation pursuant to this Section. The Company will reimburse the Employee for reasonable attorney’s fees and costs incurred as a result of his compliance with this Section. 

 

 

12. Notices. All notices and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by certified mail (return receipt requested) or sent by overnight delivery service, or facsimile transmission (with electronic confirmation of successful transmission) to the parties at the following addresses or at such other addresses as shall be specified by the parties by like notice, in order of preference of the recipient:

 

	

If to the Company:
 	

 
 	

Brandywine Realty Trust
 
	

 
 	

 
 	

555 E. Lancaster Ave., Suite 100
 
	

 
 	

 
 	

Radnor, PA 19087
 
	

 
 	

 
 	

Attn: Gerard H. Sweeney
 
	

 
 	

 
 	

President and CEO
 
	

 
 	

 
 	

Fax: (610) 832-4919
 

 

	

If to Employee:
 	

 
 	

Howard M. Sipzner
 5401 Collins Avenue – Apt 516 
 Miami Beach, FL 33140
 
	

 
 	

 
 	

 
 
	

 
 	

 
 	

With copies to: 
 
	

 
 	

 
 	

 
 
	

 
 	

 
 	

Rhonda Sipzner 
 184-23 Radnor Road 
 Jamaica Estates, NY 11432
 
	

 
 	

 
 	

 
 
	

 
 	

 
 	

And 
 
	

 
 	

 
 	

 
 
	

 
 	

 
 	

Fred R. Green, Esq.
 Herrick, Feinstein LLP 
 2 Park Avenue
 New York, New York 10016
 
	

 
 	

 
 	

 
 

 

Notice so given shall, in the case of mail, be deemed to be given and received on the fifth calendar day after posting, in the case of overnight delivery service, on the date of actual delivery and, in the case of facsimile transmission, telex or personal delivery, on the date of actual transmission or, as the case may be, personal delivery.

13. Entire Agreement; Amendments. This Agreement contains the entire agreement and understanding of the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature between the parties hereto relating to the employment of the Employee with the Company. This Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.

 

 

14.  Waiver. The waiver of the breach of any term or provision of this Agreement shall not operate as or be construed to be a waiver of any other or subsequent breach of this Agreement.

15. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Pennsylvania, without regard to the principles of conflicts of laws of any jurisdiction.

16. Section 409A Provisions: 

16.1
  Six-Month Wait for Key Employees Following
  Separation from Service. To the extent
  that any amount payable under this Agreement constitutes an amount payable under
  a “nonqualified deferred compensation plan,” as defined in Internal
  Revenue Code Section 409A (“Section 409A”), following a “separation
  from service,” as defined in Section 409A, then, notwithstanding any other
  provision in this Agreement to the contrary, such payment will not be made until
  the date that is six months following the Employee’s “separation from
  service,” but only if the Employee is then deemed to be a “specified
  employee” under Section 409A.

16.2
  Necessary Amendments Due to Section 409A
  . The parties hereto acknowledge that the requirements of Section 409A are still
  being developed and interpreted by government agencies, that certain issues
  under Section 409A remain unclear at this time, and that the parties hereto
  have made a good faith effort to comply with current guidance under Section
  409A. Notwithstanding anything in this Agreement to the contrary, in the event
  that amendments to this Agreement are necessary in order to comply with future
  guidance or interpretations under Section 409A (or other statutory or regulatory
  developments), including amendments necessary to ensure that compensation will
  not be subject to Section 409A, the Employee agrees that the Company shall be
  permitted to make such amendments, on a prospective and/or retroactive basis,
  in its sole discretion. In the event it shall be determined that the payment
  of any amounts referred to in this agreement (the “Payments”) is or
  will be subject to the excise tax imposed by Section 409A or any interest or
  penalties with respect to such payment or excise tax (such excise tax, together
  with any such interest and penalties, are collectively referred to as the “Excise
  Tax”), then the Employee, to the extent he has cooperated under this Section
  16, shall be entitled to receive an additional payment (a “Gross-Up Payment”)
  in an amount such that after payment by the Employee of all taxes (including
  any interest or penalties imposed with respect to such taxes), including but
  not limited to, any income tax, employment tax or Excise Tax, imposed upon the
  Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal
  to the Excise Tax imposed upon the Payments. 

17. Invalidity. If any provision of this Agreement shall be determined to be void, invalid, unenforceable or illegal for any reason, the validity and enforceability of all of the remaining provisions hereof shall not be affected thereby. 

 

 

18. Section Headings. The section headings in this Agreement are for convenience only; they form no part of this Agreement and shall not affect its interpretation.

19. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.

20. Indemnification and D&O Insurance. The Company shall, to the full extent permitted by law, indemnify and hold harmless the Employee from and against any liability, damage, claim or expense incurred by reason of any act performed or omitted to be performed by the Employee in connection with the business of the Company, including, without limitation, reasonable attorneys fees and reasonable expenses incurred by the Employee in connection with the defense of any action based on any such act or omission. Without limiting the foregoing, the Employee shall be entitled to the benefit of the indemnification provisions available to senior officers of the Company.

The Employee shall be covered under any directors’ and officers’ liability insurance policies maintained by the Company to the extent of the limits and subject to any exclusions provided in the policy as are applicable to the Company’s officers in general.

 

IN WITNESS WHEREOF, the parties have caused this Employment Agreement to be executed the day and year first written above.

 

 

	

 
 	

 
 	

        BRANDYWINE
          OPERATING PARTNERSHIP, L.P., 

        By:
          Brandywine Realty Trust, its general partner

      
	

  
 	

 
 	

 
 	

  
 
	

 
 	

 
 	

 	

 
	

 
 	

 
 	

By:
 	

Gerard H. Sweeney
 
	

 
 	

 
 	

Its:
 	

President and Chief Executive Officer
 
	

 
 	

 
 	

 
 	

 
 

 

	

  
 	

 
 	

  
 
	

 
 	

 
 	

 
	

 
 	

 
 	

Howard M. Sipzner

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