Document:

Highwoods Properties, Inc. 2005 Shareholder Value Plan

 Exhibit 10.7 
  
 HIGHWOODS PROPERTIES, INC. 
 2005 SHAREHOLDER VALUE PLAN 
  
 Section
1. General Purpose of the Plan: Definitions 
  
 The name of the plan is the Highwoods Properties, Inc. 2005 Shareholder Value Plan (the “Plan”). The purpose of the Plan is to further align the interests of the officers of Highwoods Properties, Inc. (the “Company”) and
its Subsidiaries upon whose judgement, initiative and efforts the Company largely depends for the successful conduct of its business with those of the Company and its shareholders. The Plan provides that those officers selected by the Committee
shall be allowed to participate in a long term incentive plan which rewards them only upon the Company’s achieving shareholder returns at or above that of the Company’s peers, thereby stimulating their efforts on the Company’s behalf
and strengthening their desire to remain with the Company. 
  
 The
following terms shall be defined as set forth below: 
  
 “Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Agreement” shall mean the written agreement, substantially in the form of Exhibit B attached hereto, evidencing an SVP Award hereunder between the Company and the recipient of such SVP Award.

  
 “Board” means the Board of Directors of the
Company. 
  
 “Cause” means and shall be limited
to a vote of the Board resolving that the Participant should be dismissed as a result of (i) any material breach by the Participant of any agreement to which the Participant and the Company are parties, (ii) any act (other than voluntary termination
of employment by the participant) or omission to act by the Participant which may have a material and adverse effect on the business of the Company or any Subsidiary or on the Participant’s ability to perform services for the Company or any
Subsidiary, including, without limitation, the commission of any crime (other than ordinary traffic violations), or (iii) any material misconduct or neglect of duties by the Participant in connection with the business or affairs of the Company or
any Subsidiary. 
  
 “Change of control” is
defined in Section 9. 
  
 “Code” means the
Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations. 
  
 “Committee” means the Board or any Committee of the Board referred to in Section 2. 
  
 “Disability” means disability as set forth in Section
22(e)(3) of the Code. 
  
 “Fair Market Value”
means the last reported sale price at which a share of common stock in a given company is traded on any given date or, if no such shares are traded on such date, on the next most recent date on which such shares were traded, as reflected on the New
York Stock Exchange or, if applicable, any other national stock exchange on which such shares are traded. 

 “Non-Employee Director” means a director who is qualified as such under Rule 16b-3(b)(3)
promulgated under the Act or any successor definition under the Act. 
  
 “Participant” shall mean any of the employees selected by the Committee to participate in the Plan and who executes an Agreement. 
  
 “Peer Group” shall mean that list of companies as determined from time to time by the Committee and as listed on Exhibit C attached
hereto. The component members of the Peer Group may be changed from time to time in the reasonable discretion of the Committee. 
  
 “Performance Measures” shall mean the criteria and objectives, established by the Committee, which shall be satisfied or met during the
applicable Plan Period as a condition to the holder’s receipt of an SVP Award. The Committee may, in its reasonable discretion, amend or adjust the Performance Measures or other terms and conditions of an outstanding SVP Award in recognition of
unusual or nonrecurring events affecting the Company or its financial statements or changes in law or accounting principles. If the Committee consists solely of “outside directors” (within the meaning of Section 162(m) of the Code and the
regulations promulgated thereunder) and the Committee desires that compensation payable pursuant to any SVP Award subject to Performance Measures shall be “qualified performance-based compensation” within the meaning of Section 162(m) of
the Code, the Performance Measures (i) shall be established by the Committee no later than the end of the first quarter of the Plan Period, as applicable (or such other time permitted pursuant to Treasury Regulations promulgated under Section 162(m)
of the Code or otherwise permitted by the Internal Revenue Service) and (ii) shall satisfy all other applicable requirements imposed under Treasury Regulations promulgated under Section 162(m) of the Code, including the requirement that such
Performance Measures be stated in terms of an objective formula or standard. 
  
 “Plan Period” shall mean any period designated by the Committee for which the Performance Measures shall be calculated, but generally, shall refer to the three (3) year period beginning on each
January 1. 
  
 “Restricted Share” means a Share,
as defined below, subject to the terms, conditions and provisions hereof. 
  
 “Share” or “Shares” means one or more, respectively, of the Company’s shares of common stock, par value $.01 per share, subject to adjustments pursuant to Section 3. 

 
  

 “Shareholder Return” shall mean as to the common stock of any applicable company the
percentage determined by dividing (x) the fair Market Value of a share of such stock at the end of the Plan Period plus all dividends or distributions paid with respect to such share during the Plan Period and assuming reinvestment in such shares of
all such dividends or distributions, adjusted to give effect to Section 3 of the Plan, by (y) the Fair Market Value of a share of stock of the applicable company on its last trading day immediately preceding the first day of the Plan Period.

  
 “Shareholder Value Plan Award” or “SVP
Award” shall mean a right stated as a grant of Restricted Shares as provided hereby, contingent upon the attainment of specified Shareholder Returns of the Company as compared to Shareholder Returns of the Peer Group within the Plan Period.

  
 “Subsidiary” means Highwoods Realty Limited
Partnership and any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities, beginning with the Company, if each of the corporations or entities (other than the last corporation or entity in the
unbroken chain) owns stock or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain. 
  
 Section 2. Administration of Plan: Committee Authority to Select Participants
and Determine SVP Awards 
  
 (a) Committee.
The Plan shall be administered by the Compensation and Governance Committee of the Board. 
  
 (b) Powers of Committee. The Committee shall have the power and authority to grant SVP Awards consistent with the terms of the Plan, including the power and authority: 
  
 (i) to select Participants to whom SVP Awards may be granted
from time to time; 
  
 (ii) to determine the time
or times of a grant of an SVP Award; 
  
 (iii) to
determine and modify the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any SVP Award, which terms and conditions may differ among individual SVP Awards and Participants, and to approve the form of
written instruments evidencing the SVP Awards; 
  
 (iv) to accelerate the vesting of all or any portion of any SVP Award; 
  
 (v) to extend the period in which an SVP Award may be settled; and 

 (vi) to adopt, alter and repeal such rules, guidelines and practices for administration
of the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any SVP Awards (including related written instruments); to make all determinations it deems advisable for the
administration of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 
  
 All decisions and interpretations of the Committee shall be binding on all persons, including the Company and Plan Participants. 
  
 Section 3. Mergers; Substitutions 
  
 In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or other similar change in capitalization or similar dividend affecting either the Company or a company included in the Peer Group, the terms of the Plan
shall be appropriately adjusted by the Committee. The decision of the Committee regarding any such adjustment shall be final, binding and conclusive. 
  
 Section 4. Eligibility 
  
 Participants in the Plan will be such full or part-time officers of the Company and its Subsidiaries who are responsible for or contribute to the
management, growth, or profitability of the Company and its Subsidiaries and who are selected from time to time by the Committee, in its sole discretion. 
  
 Section 5. Shareholder Value Plan Awards 
  
 (a) Shareholder Value Plan Awards. The Committee may, in its discretion, grant SVP Awards to such eligible persons as may be selected by the
Committee. 
  
 (b) Terms of SVP Awards. SVP Awards shall
be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall in its discretion deem advisable: 
  

	 	(i)	Grant of SVP Awards. An SVP Award may be granted by the Committee. The Plan Period and Performance Measures of an SVP Award also shall be as designated by the Committee.

  

	 	(ii)	Dividends and Distributions. All dividends and distributions payable with respect to a share during the Plan Period shall be paid to the Participant.

	 	(iii)	Vesting and Forfeiture. The Agreement relating to an SVP Award shall provide, in the manner determined by the Committee in its discretion and subject to the provisions of
this Plan, for the vesting of such SVP Award if specified Performance Measure(s) are satisfied or met during the specified Plan Period, and for the forfeiture of such SVP Award if specified Performance Measure(s) are not satisfied or met during the
specified Plan Period. 

  

	 	(iv)	Valuation of SVP Awards. 

  
 (a) At the date of grant of an SVP Award, each SVP Award shall be stated in terms of a grant of specific number of Shares. Such Shares
shall be non-transferable during the term of the applicable Plan Period. 
  
 (b) The settlement value of an SVP Award (the “Value”) shall be based upon the relative percentage of Shareholder Return for a Share compared to the Shareholder Return of the shares in the Peer Group. The
Value shall be determined as follows: 
  
 If the
Company’s Shareholder Return for the Plan Period divided by the Shareholder Return of the Peer Group (such result being termed the “Index Ratio” and expressed in percentage points) as of the measurement date equals or exceeds 100,
then the Value of an SVP Award will be equal to the number of Restricted Shares in the SVP Award times the sum of .5 plus .025 for each percentage point that the Index Ratio exceeds 100. In no event, however, shall the Value of an SVP Award exceed 3
times the Fair Market Value of the Shares in the Award. If the Index Ratio is less than 100, then an SVP Award shall have a Value equal to $0. 
  
 An example of the computation of the Value of an SVP Award is attached at Exhibit A. 
  
 (v) Settlement of Vested SVP Awards. SVP Awards shall be settled in Shares. The Settlement Date shall
be established by the Company so long as such Settlement Date occurs not later than 120 days following the expiration of the applicable Plan Period. Except to the extent otherwise provided in the Agreement relating to an SVP Award, in the event of a
Change of Control the provisions of Section 9 shall apply. 
  
 (c) Termination
of Employment or Service. 
  

	 	(i)	Disability, Death and Involuntary Termination Without Cause. Except to the extent otherwise set forth in the Agreement relating to an SVP Award, if the employment of a
Participant is terminated by reason of Disability, death 

	 	 	or involuntary termination by the Company without Cause, the Plan Period with respect to any SVP award held by such Participant shall terminate, the Performance Measure shall be
computed through such date, the Value shall be determined and pro rated to reflect the portion of the Plan Period completed prior to the date of termination of employment and the applicable SVP Award shall be settled in Shares as soon as practicable
following the termination but not later then the tenth day thereafter. 

  

	 	(ii)	Other Termination. Except to the extent otherwise set forth in the Agreement relating to an SVP Award, if the Participant’s employment with the Company terminates for
any reason other than Disability, death, or involuntary termination by the Company without Cause, then the Plan Period for such SVP Award shall be deemed to end on the date of such termination, no Performance Measure shall be recognized or deemed
attained, satisfied or met, and the holder’s SVP Award shall be forfeited to and canceled by the Company. 

  
 (d) Status as a Shareholder. Subject to the provisions hereof and of any applicable Agreement, the Employee receiving a grant of Restricted Shares
hereby shall thereafter be a stockholder with respect to all of such Shares and shall have the rights of a stockholder with respect to such Shares, including the right to vote and the right to receive dividends and other distributions (other than
liquidating or special distributions which shall not be payable with respect to Restricted Shares) paid with respect to such Shares . All Shares received by Participant as a result of any dividend on Restricted Shares, or as a result of any stock
split-up, stock distribution or combination of shares affecting Restricted Shares, shall be subject to the restrictions set forth herein. 
  
 Section 6. Tax Withholding 
  
 Each Participant shall, not later than the date as of which the Value of an SVP Award or amounts received hereunder first becomes includable in the gross
income of the Participant for federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of any federal, state, or local taxes of any kind required by law to be withheld with respect to such
income. The Committee in its discretion may require that the Company withhold from the Shares to be issued pursuant to the vesting of an SVP Award a number of Shares with an aggregate Fair Market Value (as of the date the withholding is effected)
that would satisfy the withholding amount due. 
  
 Section 7.
Transfer, Leave of Absence, Etc. 
  
 For
purposes of the Plan, the following events shall not be deemed a termination of employment: 
  
 (a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another; or 

 (b) an approved leave of absence for military service or sickness, or for any other purposes approved by
the Company, if the employee’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing. 
  
 Section 8. Amendments and Termination 
  
 The Board may, at any time, amend or discontinue the Plan and the Committee
may, at any time, amend or cancel any outstanding SVP Award for the purpose of satisfying changes in law without the consent of any Participant. No amendment, however, may impair the rights of a holder of an outstanding SVP Award without the consent
of such holder. 
  
 Section 9. Change of Control
Provisions 
  
 Upon the occurrence of a Change of
Control as defined in this Section 9: 
  
 (a) The Plan Period for
SVP Awards will expire, the Performance Measures will be computed through the date of such Change of Control, the Value shall be determined and pro rated to reflect the portion of the Plan Period completed prior to the date of the Change of Control
and the applicable SVP Award shall be settled on the date of such Change in Control. 
  
 (b) “Change of Control” shall mean the occurrence of any one of the following events: 
  
 (i) any “person,” as such term is used in Section 13(d) and 14(d) of the Act (other than the Company, any of its
Subsidiaries, any trustee, fiduciary or other person or entity holding securities under any employee benefit plan of the Company or any of its Subsidiaries), together with all “affiliates” and “associates” (as such terms are
defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 40% or more of either (A) the
combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Company’s Board of Directors (“Voting Securities”) or (B) the then outstanding Shares (in either such case other
than as a result of acquisition of securities directly from the Company); or 
  
 (ii) persons who, as of January 1, 2005, constitute the Company’s Board of Directors (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender offer, proxy
contest, merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming a director of the Company subsequent to May 1, 2005 whose election or nomination for election was approved by a vote of at
least a majority of the Incumbent Directors shall, for purposes of this Plan, be considered an Incumbent Director; or 

 (iii) the stockholders of the Company shall approve (A) any consolidation or merger of
the Company or any Subsidiary where the stockholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, shares representing in the aggregate 50% of the voting shares of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), (B) any sale, lease, exchange or
other transfer (in one transaction or a series of transactions contemplated or arranged by an party as a single plan) of all or substantially all of the assets of the Company or (C) any plan or proposal for the liquidation or dissolution of the
Company. 
  
 Notwithstanding the foregoing, a “Change of
Control” shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of an acquisition of securities by the Company which, by reducing the number of Shares or other voting securities outstanding, increases
(x) the proportionate number of Shares beneficially owned by any person to 40% or more of the Shares then outstanding or (y) the proportionate voting power represented by the voting securities beneficially owned by any person to 40% or more of the
combined voting power of all then outstanding voting securities; provided, however, that if any person referred to in clause (x) or (y) of this sentence shall thereafter become the beneficial owner of any additional Shares or other voting
securities (other than pursuant to a stock split, stock dividend, or similar transaction), then a “Change of Control” shall be deemed to have occurred for purposes of the foregoing clause (i). 
  
 Section 10. Effective Date of Plan 
  
 The effective date of the Plan is January 1, 2005. 
  
 Section 11. Governing Law 
  
 This Plan shall be governed by North Carolina law except to the extent such law is preempted
by federal law. 
  
 Section 13. Interpretation

  
 It is the intent of the Board that benefits payable under the Plan are
not taxable until such benefits are vested under the terms of the Plan. This Plan shall be interpreted at all times by the Committee in its sole discretion in such a manner so as to avoid any inconsistency or failure to meet the provisions of
Section 409A of the Internal Revenue Code and the regulations thereto. No distribution of benefits hereunder may be made except in accordance with the requirements of Section 409A and in the event of any conflict between the terms hereof and the
provisions thereof, the provisions of Section 409A shall control. To the extent that a distribution hereunder is delayed by this interpretive provision, the Company shall cause such distribution to made at the earliest possible time in compliance
with Section 409A. 

 EXHIBIT A 
  

SHAREHOLDER VALUE PLAN 
 Determination of Settlement Value – Example 
  

	1)	Fair Market Value at 1/1/05: 

  

						
	 Highwoods
	  	$	25.00	  	 
	 Peer Group (total)
	  	$	1,200.00	  	 

  

	2)	Dividends per share during Plan Period: 

  

						
	 Highwoods
	  	$	8.00	  	 
	 Peer Group (total)
	  	$	234.00	  	 

  

	3)	Fair Market Value at end of Plan Period: 

  

						
	 Highwoods
	  	$	43.00	  	 
	 Peer Group
	  	$	1,920.00	  	 

  

	4)	Shareholder Return: 

  
 Highwoods: 
  

						
	 Dividends
	  	$	8.00	  	 
	 Return on Dividends*
	  	 	.75	  	 
	 FMV-ending
	  	 	43.00	  	 
	 	  	
	
	  	 
	 	  	 	51.75	  	 
	 	  	 	÷	  	= 2.07
	 FMV - beginning
	  	 	25.00	  	 

  
 Peer Group:

  

						
	 Dividends
	  	$	243.00	  	 
	 Return on dividends*
	  	 	18.05	  	 
	 FMV - ending
	  	 	1,920.00	  	 
	 	  	
	
	  	 
	 	  	 	2,181.05	  	 
	 	  	 	÷	  	= 1.82
	 FMV - beginning
	  	 	1,200.00	  	 

  

	5)	Index Ratio: 

  

					
	 Highwoods Shareholder Return
	  	2.07	  	 
	 	  	÷	  	= 1.14
	 1.13
	  	 	  	 
	Peer Group Shareholder Return	  	1.82	  	 

	6)	Value of an SVP Award: 

  
 Since the Index Ratio exceeds 1.00, the Value of an SVP Award is equal to one times the sum of .5 + (.025 times the Index Ratio in percentage points
less 100), or 
  

			
	 No. of Shares in an SVP Award
	  	1,000
	 .5 + (.025) (114-100) =
	  	.850
	 	  	

	 No. of Vested Shares
	  	850
	 	  	

  
  

 Exhibit C 
  

Peer Group 
  
 Arden Realty, Inc. 
  
 Brandywine Realty Trust 
  
 CarrAmerica Realty Corp. 
  
 CRT Properties, Inc. 
  
 Duke Realty Corp. 
  
 Equity Office Properties Trust 
  
 Kilroy Realty Corp. 
  
 Liberty Property Trust 
  
 Mack-Cali Realty Corp. 
  
 Parkway Properties, Inc. 
  
 Prentiss Properties TrustSecond Amendment to Credit Agreement

 Exhibit 10.10 
  
 SECOND AMENDMENT TO CREDIT AGREEMENT 
  
 THIS SECOND AMENDMENT TO CREDIT AGREEMENT dated as of June 10, 2004 (the “Second Amendment”), is by
and among HIGHWOODS REALTY LIMITED PARTNERSHIP, a North Carolina limited partnership (“Highwoods Realty”), HIGHWOODS PROPERTIES, INC., a Maryland corporation (“Highwoods Properties”), HIGHWOODS FINANCE, LLC, a
Delaware limited liability company (“Highwoods Finance”), HIGHWOODS SERVICES, INC., a North Carolina corporation (“Highwoods Services”), and HIGHWOODS/TENNESSEE HOLDINGS, L.P., a Tennessee limited partnership
(“Highwoods Tennessee”) (Highwoods Realty, Highwoods Properties, Highwoods Finance, Highwoods Services, and Highwoods Tennessee are hereinafter referred to individually as a “Borrower” and collectively as the
“Borrowers”), the subsidiaries of the Borrowers identified on the signature pages to the Credit Agreement referenced below or joined as parties thereto pursuant to Section 7.12 thereof, except to the extent such subsidiaries
constitute Non-Guarantor Subsidiaries in accordance with the terms of the Credit Agreement, as amended hereby (such Subsidiaries party hereto are hereinafter referred to individually as a “Guarantor” and collectively as the
“Guarantors”), the Lenders (as defined in the Credit Agreement), BANK OF AMERICA, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”), BANC OF AMERICA SECURITIES LLC, as Sole
Lead Arranger (in such capacity, the “Sole Lead Arranger”) and Sole Book Manager (in such capacity, the “Sole Book Manager”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as Syndication Agent (in such capacity, the
“Syndication Agent”) and BRANCH BANKING & TRUST COMPANY and FLEET NATIONAL BANK OF AMERICA, as Co-Documentation Agents (in such capacity, the “Documentation Agent”), and is an amendment to that certain Amended
and Restated Credit Agreement dated as of July 17, 2003 by and among the Borrowers, Guarantors, Lenders, Administrative Agent, Sole Lead Arranger, Sole Book Manager, Syndication Agent and Documentation Agent, as amended by that certain First
Amendment to Credit Agreement dated as of March 29, 2004 (as the same may have been otherwise or further amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”). 
  
 WITNESSETH 
  
 WHEREAS, each of the Borrowers and the Guarantors have requested and
the Lenders and Administrative Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein; 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged by the parties hereto, the parties hereto agree as
follows: 
  
 1. Amendments to Credit Agreement.

  
 (a) The definition of “Non-Guarantor
Subsidiary” contained in Section 1.1 of the Credit Agreement is hereby deleted in its entirety and replaced with the following: 
  
 ““Non-Guarantor Subsidiary” means a collective reference to: 
  
 (a) those Persons listed on Schedule 1.1(b) attached
hereto; 
  
 (b) any Subsidiary of any Credit
Party (i) formed for or converted to (in accordance with the terms and conditions set forth herein) the specific purpose of holding title to assets which are collateral for Indebtedness owing by such Subsidiary and (ii) which is (or, immediately
following its release as a Credit Party hereunder, shall be) expressly prohibited in writing from guaranteeing Indebtedness of any other Person pursuant to (A) a provision in any document, instrument or agreement evidencing such Indebtedness of such
Subsidiary or (B) a provision of such Subsidiary’s organizational documents, in each case, which provision was included in such organizational document or such other document, instrument or agreement as an express condition to the extension of
such Indebtedness required by the third party creditor providing the subject financing; provided, that a Subsidiary meeting the above requirements shall only remain a “Non-Guarantor Subsidiary” for so long as (1) each of the above
requirements are satisfied, (2) such Subsidiary does not guarantee any other indebtedness and (3) the Indebtedness with respect to which the restrictions noted in clause (ii) are imposed remains outstanding; 

 (c) any Subsidiary of any Credit Party (i) which becomes a Subsidiary of any Credit Party
following the Closing Date, (ii) which is not a Wholly-Owned Subsidiary of the Credit Party, and (iii) with respect to which the Credit Party, as applicable, does not have sufficient voting power (and is unable, after good faith efforts to do so, to
cause any necessary non-Credit Party equity holders to agree) to cause such Subsidiary to execute a Joinder Agreement pursuant to the terms hereof or, notwithstanding such voting power, the interests of such non-Credit Party holders have material
economic value in the reasonable judgment of the Borrower that would be impaired by the execution of a Joinder Agreement; and 
  
 (d) any other Subsidiary of a Credit Party to the extent (i) such Subsidiary holds no assets; or (ii) (A) such Subsidiary holds total
assets with a value of less than $500,000 and (B) the sum of the values of the total assets held by the Subsidiaries already qualifying as Non-Guarantor Subsidiaries pursuant to subclause (d)(i)(A) above plus the value of the total assets held by
the applicable Subsidiary is less than $5,000,000; and 
  
 “Non-Guarantor Subsidiary” means any one of such Persons.” 
  
 (b) The following Section 1.5 is hereby added to the Credit Agreement immediately following Section 1.4 thereof: 

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

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

  

 2 

 
pursuant to any of clauses (b), (c) or (d) of the definition thereof, the Principal Borrower may request a release of such Guarantor as a Guarantor hereunder
in accordance with the following: 
  
 (i) the
Principal Borrower shall deliver to the Administrative Agent, not less than ten (10) days and not more than thirty (30) days prior to the anticipated or intended conversion of a Guarantor into a Non-Guarantor Subsidiary, a written request for
release of the applicable Guarantor and a pro forma compliance certificate of the chief financial officer of the Principal Borrower in form and substance acceptable to the Administrative Agent, (A) demonstrating that upon such release the Credit
Parties will on a pro forma basis continue to comply with (1) the financial covenants contained in Section 7.11 and (2) the financial covenants contained in each of the indentures or other agreements relating to any publicly issued debt securities
of any Consolidated Party, in each case by a reasonably detailed calculation thereof (which calculation shall be in form reasonably satisfactory to the Agent and which shall include, among other things, an explanation of the methodology used in such
calculation and a breakdown of the components of such calculation), (B) stating that the Credit Parties will be in compliance with each of the covenants set forth in Sections 7 and 8 of the Credit Agreement at all times following such release, (C)
stating that, following such release, no Default or Event of Default will exist under the Credit Agreement or any of the other Credit Documents, or if any Default or Event of Default will exist, specifying the nature and extent thereof and what
action the Credit Parties propose to take with respect thereto, and (D) attaching, pursuant to Section 6.13 of the Credit Agreement, an updated version of Schedules 6.13 to the Credit Agreement; 
  
 (ii) the Administrative Agent shall have reviewed and
approved (in writing) the request for release and pro forma compliance certificate delivered pursuant to subclause (i) above; provided, that the failure of the Administrative Agent to respond to such a request within ten (10) days of its receipt
thereof shall constitute the Administrative Agent’s approval thereof; provided, that any approval of the Administrative Agent provided pursuant to this subclause (ii) shall lapse and be null and void thirty (30) days following the granting
thereof if the applicable Guarantor has not, on or prior to the completion of such period, met the criteria for qualification as a Non-Guarantor Subsidiary (as evidenced by the delivery by the Principal Borrower of a notice and certification in
accordance with subclause (iii) below); and 
  
 (iii) the Principal Borrower shall, concurrently with or promptly following the applicable Guarantor’s satisfaction of the criteria for qualification as a Non-Guarantor Subsidiary deliver to the Administrative Agent a notice and
certification of such qualification. 
  
 Notwithstanding any
language to the contrary above, so long as the chief financial officer of the Principal Borrower has certified in a compliance certificate (and the Administrative Agent has no evidence or information which brings into reasonable doubt the veracity
of such certifications) that: (A) upon such release the Credit Parties (1) will on a pro forma basis continue to comply with the financial covenants contained in Section 7.11, and the financial covenants contained in each of the indentures or other
agreements relating to any publicly issued debt securities of any Consolidated Party, and (2) will be in compliance with each of the covenants set forth in Sections 7 and 8 of the Credit Agreement at all times following such release, (B) following
such release, no Default or Event of Default will exist under the Credit Agreement or any of the other Credit Documents, or if any Default or Event of Default will exist, the nature and extent thereof and what action the Credit Parties propose to
take with respect thereto will be specified, and (C) attached pursuant to Section 6.13 of the Credit Agreement, is an updated version of Schedules 6.13 to the Credit Agreement, the request for release shall be approved and issued by the
Administrative Agent within the 10-day time period specified in subsection (b)(ii). 
  
 Upon satisfaction of each of the above-noted conditions, a Guarantor shall be deemed released from its obligations hereunder and under each of the Credit Documents.” 
  

 3 

 (d) The text of Section 7.14 of the Credit Agreement is hereby deleted in its
entirety and replaced with the following: 
  
 “Each Credit Party shall, to the extent it exercises sufficient control over the activities of the applicable Non-Guarantor Subsidiary(ies), cause all “Excess Cash Flow” (as defined below) of each Non-Guarantor Subsidiary to
be transferred to a Credit Party as promptly as possible but at least once a month. For the purposes of this Section 7.14, “Excess Cash Flow” means an amount equal to all net operating income of a Non-Guarantor Subsidiary minus all debt
service payments of such Non-Guarantor Subsidiary minus all amounts required to fund reserves of such Non-Guarantor Subsidiary.” 
  
 (e) The text of Section 8.15 of the Credit Agreement is hereby deleted in its entirety and replaced with the following: 

 
 “Notwithstanding any other provision of this Credit
Agreement, the Credit Parties shall prohibit any Non-Guarantor Subsidiary from (a) forming or acquiring any new Subsidiary; (b) incurring any Indebtedness that is recourse to any Credit Party, (c) purchasing or acquiring any new Real Property or
other assets other than those used in connection with currently owned Real Property or (d) incurring any change in its ownership which has the effect of reducing the percentage thereof owned by the Credit Parties.” 
  
 (f) The following Section 10.11 is hereby added to
the Credit Agreement following Section 10.10 thereof: 
  
 “10.11 Credit Document Guaranty Matters. 
  
 The Lenders irrevocably authorize the Administrative Agent to release any Guarantor from its obligations hereunder and under each of the
other Credit Documents to the extent such release is requested by such Guarantor and the Principal Borrower in accordance the provisions set forth in Section 7.12(b) hereof and upon the satisfaction of the conditions set forth in such Section
7.12(b) (as reasonably determined by the Administrative Agent). Upon request by the Administrative Agent at any time, the Lenders will confirm in writing the Administrative Agent’s authority to grant releases and terminations pursuant to this
Section 10.11. Further, the Administrative Agent is hereby authorized by the Lenders, upon the request of any Guarantor released pursuant to Section 7.12(b) hereof, to execute and deliver to such Guarantor a document (in form and substance
acceptable to the Administrative Agent) evidencing such release.” 
  
 (g) The text of Schedule 1.1(b) attached to the Credit Agreement is hereby deleted in its entirety and replaced with the text set forth on Schedule 1.1(b) attached hereto. 
  
 (h) Each of Highwoods Orlando, LLC (f/k/a MG-HIW, LLC), a
Delaware limited liability company and wholly owned subsidiary of the Operating Partnership, HIW-KC Orlando, LLC ( f/k/a MG-HIW Orlando, LLC, a Delaware limited liability company and a wholly owned subsidiary of Highwoods Orlando, LLC, and Highwoods
KC Glenridge, LLC, a Delware limited liability company and wholly owned subsidiary of the Operating Partnership, is hereby released from its obligations under the Credit Agreement and each of the other Credit Documents. 
  
 (i) Notwithstanding any language to the contrary in this
Second Amendment, nothing herein shall prohibit an Asset Disposition of a Non-Guarantor Subsidiary under the terms and conditions of Section 8.17 of the Credit Agreement. Upon any Asset Disposition under the terms and conditions of Section 8.17, a
release shall be granted. The Lenders irrevocably authorize the Administrative Agent to grant such release upon the satisfaction of the terms and conditions of an Asset Disposition under Section 8.17. 
  
 2. Conditions Precedent. The effectiveness of this Second
Amendment is subject to receipt by the Administrative Agent of each of the following, each in form and substance satisfactory to the Administrative Agent: 
  
 (a) a counterpart of this Second Amendment duly executed by each of: the Borrowers, Guarantors and Supermajority Lenders; 
  

 4 

 (b) payment by Borrowers of (i) any fees required by the Administrative Agent or Sole
Lead Arranger in connection with this Second Amendment, (ii) a fee to each Lender executing and delivering its signature page to this Second Amendment to the Administrative Agent on or before
                    , 2004, such fee for a particular Lender to be in an amount equal to 0.10% times the maximum amount of such Lender’s
Revolving Commitment, (iii) all other outstanding fees and expenses of the Administrative Agent and the Administrative Agent’s counsel incurred in connection with the preparation of this Second Amendment, (iv) all other fees and expenses
relating to the preparation, execution and delivery of this Second Amendment or otherwise related to the Credit Agreement or the Credit Documents which are due and payable as of the date hereof, including, without limitation, payment to the
Administrative Agent of attorneys’ fees, consultants’ fees, travel expenses, all fees and expenses associated with prior transactions entered into or contemplated by and between Borrowers and the Administrative Agent and (v) all other fees
and expenses due and then-owing from the Borrowers to the Administrative Agent and Lenders pursuant to the terms hereof, the terms of the Credit Agreement and the terms of the other Credit Documents; and 
  
 (c) such other documents, instruments and agreements as the
Administrative Agent may reasonably request. 
  
 3.
Representations. Each of the Borrowers and each of the Guarantors collectively represent and warrant to the Administrative Agent and the Lenders that: 
  
 (a) Authorization. Each of the Borrowers and each of the Guarantors, respectively, has the right and
power and has obtained all authorizations necessary to execute and deliver this Second Amendment and to perform its respective obligations hereunder and under the Credit Agreement, as amended by this Second Amendment, in accordance with their
respective terms. This Second Amendment has been duly executed and delivered by a duly authorized officers of each of the Borrowers and each Guarantor, respectively, and each of this Second Amendment and the Credit Agreement, as amended by this
Second Amendment, is a legal, valid and binding obligation of each of the Borrowers and each Guarantor (each as applicable), enforceable against each of the Borrowers and each Guarantor (each as applicable) in accordance with its respective terms,
except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and by equitable principles generally. 
  
 (b) Compliance with Laws, etc. The execution and delivery by each of the Borrowers and each of the
Guarantors of this Second Amendment and the performance by each of the Borrowers and/or the Guarantors of this Second Amendment and the Credit Agreement, as amended by this Second Amendment, in accordance with their respective terms, does not and
will not, by the passage of time, the giving of notice or otherwise: (i) require any approval (other than those already obtained) by any Governmental Authority or violate any law (including any Environmental Law) which is applicable to a Borrower,
any Guarantors, any Consolidated Party, the Credit Documents or the transactions contemplated herein or therein; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of any Borrower, any of the
Guarantors or any other Consolidated Party, or any indenture, agreement/or other instrument to which any Borrower, any of the Guarantors or any other Consolidated Party is a party or by which it or any of its respective properties may be bound; or
(iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by any Borrower, any Guarantor or any other Consolidated Party other than in favor of the Administrative Agent for
the benefit of the Lenders; and 
  
 (c) No
Default. No Default or Event of Default has occurred and is continuing as of the date hereof nor will exist immediately after giving effect to this Second Amendment. 
  
 4. Reaffirmation of Representations. Each of the Borrowers and each of the Guarantors hereby repeat and
reaffirm all representations and warranties made by such party to the Administrative Agent and the Lenders in the Credit Agreement and the other Credit Documents to which it is a party on and as of the date hereof (other than any representation or
warranty expressly relating to an earlier date) with the same force and effect as if such representations and warranties were set forth in this Second Amendment in full. 
  

 5 

 5. Reaffirmation of Guaranty. Each of the Guarantors hereby reaffirms its continuing
obligations to the Administrative Agent and the Lenders under the Credit Agreement and agrees that the transactions contemplated by this Second Amendment shall not in any way affect the validity and enforceability of their respective guaranty
obligations thereunder or reduce, impair or discharge the obligations of such Guarantors thereunder. 
  
 6. Severability. If any provision of any of this Second Amendment or of the Credit Agreement, as amended hereby, is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

  
 7. Certain References. Each reference to the
Credit Agreement in any of the Credit Documents shall be deemed to be a reference to the Credit Agreement as amended by this Second Amendment and this Second Amendment shall be deemed a Credit Document for purposes of the application of provisions
of the Credit Agreement generally applicable thereto (including, without limitation, any arbitration provisions or waiver provisions). 
  
 8. Expenses. The Borrowers shall reimburse the Administrative Agent upon demand for all reasonable costs and expenses (including reasonable
attorneys’ fees) incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Second Amendment and the other agreements and documents executed and delivered in connection herewith. 
  
 9. Benefits. This Second Amendment shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 10. Default. The failure of any of the Borrowers or any of the Guarantors to perform any of their respective obligations under this Second Amendment or the material falsity of any representation or
warranty made herein shall, at the option of the Administrative Agent and/or Lenders (as determined in accordance with the Credit Agreement) after expiration of any applicable cure period, constitute an Event of Default under the Credit Documents.

  
 11. No Novation. The parties hereto intend this
Second Amendment to evidence the amendments to the terms of the existing indebtedness of the Borrowers and Guarantors to the Lenders as specifically set forth herein and do not intend for such amendments to constitute a novation in any manner
whatsoever. 
  
 12. GOVERNING LAW. THIS SECOND
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE. 
  
 13. No Implied Agreements. Except as expressly herein amended, the terms and conditions of the Credit
Agreement and the other Credit Documents remain in full force and effect. The amendments contained herein shall be deemed to have prospective application only, unless otherwise specifically stated herein. 
  
 14. Counterparts. This Second Amendment may be executed in any
number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Second Amendment to produce or account for
more than one such counterpart for each of the parties hereto. Delivery by facsimile by any of the parties hereto of an executed counterpart of this Second Amendment shall be as effective as an original executed counterpart hereof and shall be
deemed a representation that an original executed counterpart hereof will be delivered. Each counterpart hereof shall be deemed to be an original and shall be binding upon all parties, their successors and assigns. 
  
 15. Binding Effect. This Second Amendment shall become
effective as of the date hereof at such time when all of the conditions set forth in Section 2 hereof have been satisfied or waived by the Lenders and it shall 

  

 6 

 
have been executed by the Borrowers, the Guarantors and the Administrative Agent, and the Administrative Agent shall have received copies hereof (telefaxed
or otherwise) which, when taken together, bear the signatures of the Supermajority Lenders, and thereafter this Credit Agreement shall be binding upon and inure to the benefit of the Borrowers, the Guarantors, the Administrative Agent and each
Lender and their respective successors and assigns. 
  
 16.
Release. Each Credit Party hereby represents and warrants that it has no claims, counterclaims, offsets, or defenses to the Credit Agreement or any of the Credit Documents, or to the performance of their respective obligations thereunder
and, in consideration of the Lenders’ and Administrative Agent’s willingness to grant the amendment referenced herein, hereby releases the Administrative Agent, the Lenders, the Sole Lead Arranger, the Sole Book Manager, the Syndication
Agent and the Documentation Agent and each of their respective officers, employees, representatives, agents, counsel and directors from any and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in
law or in equity, now known or unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or failure to act on or prior to the date hereof. 
  
 17. Definitions. All capitalized terms not otherwise defined herein are used herein with the respective
definitions given them in the Credit Agreement. The interpretive provisions set forth in Sections 1.2 and 1.3 of the Credit Agreement shall apply to this Second Amendment as though set forth herein. 
  
 [Signature Pages to Follow] 
  

 7 

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

					
	BORROWERS:	 	HIGHWOODS REALTY LIMITED PARTNERSHIP
	 	 	 By:
	 	 Highwoods Properties, Inc.

	 	 	HIGHWOODS PROPERTIES, INC.
	 	 	HIGHWOODS SERVICES, INC.
	 	 	HIGHWOODS FINANCE, LLC
	 	 	 By:
	 	 Highwoods Properties, Inc.

	 	 	HIGHWOODS/TENNESSEE HOLDINGS, L.P.
	 	 	 By:
	 	 Highwoods/Tennessee Properties, Inc.

			
	 	 	 By:
	 	 /s/ Edward J. Fritsch

	 	 	 Name:
	 	 Edward J. Fritsch

	 	 	 Title:
	 	 President

  
 (Signatures
continued on next page) 

									
	GUARANTORS:	 	HIGHWOODS/FLORIDA GP CORP.
	 	 	HIGHWOODS/TENNESSEE PROPERTIES, INC.
	 	 	HIGHWOODS/FLORIDA HOLDINGS, L.P.
	 	 	 By:
	 	 Highwoods/Florida GP Corp.

	 	 	PINELLAS NORTHSIDE PARTNERS, LTD.
	 	 	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 	 	By:	 	 Highwoods/Florida GP Corp.

	 	 	RED RUN ASSOCIATES LLC
	 	 	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 	 	 By:
	 	 Highwoods Properties, Inc.

	 	 	WINSTON-SALEM INDUSTRIAL, LLC
	 	 	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 	 	 By:
	 	 Highwoods Properties, Inc.

	 	 	TAMPA TECH PRESERVE, LLC
	 	 	 By:
	 	 581 Highwoods, L.P

	 	 	 	 	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 	 	 	 	 By:
	 	 Highwoods/Florida GP Corp.

	 	 	MARLEY CONTINENTAL HOMES OF KANSAS, L.L.C.
	 	 	 By:
	 	 Highwoods Properties, Inc.

	 	 	SOUTH PARK LAND, LLC
	 	 	 	 	 By:
	 	 Challenger, Inc.

	 	 	SOUTHWIND LAND HOLDINGS, LLC
	 	 	 By:
	 	 AP Southeast Portfolio Partners, L.P.

	 	 	 	 	 By:
	 	 Highwoods Realty GP Corp.

	 	 	AP SOUTHEAST PORTFOLIO PARTNERS, L.P.
	 	 	 	 	 By:
	 	 Highwoods Realty GP Corp.

	 	 	HIGHWOODS REALTY GP CORP.
	 	 	PINELLAS BAY VISTA PARTNERS, LTD.
	 	 	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 	 	 By:
	 	 Highwoods/Florida GP Corp.

  
 (Signatures
continued on next page) 

					
	DOWNTOWN CLEARWATER TOWER, LTD.
	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 By:
	 	 Highwoods/Florida GP Corp.

	SISBROS, LTD.
	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 By:
	 	 Highwoods/Florida GP Corp.

	SHOCKOE PLAZA INVESTORS, L.C.
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	RC ONE LLC
	 By:
	 	 Highwoods Services, Inc.

	HPI TITLE AGENCY, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	ALAMEDA TOWERS DEVELOPMENT COMPANY
	CHALLENGER, INC.
	GUARDIAN MANAGEMENT, INC.
	HIGHWOODS/CYPRESS COMMONS LLC
	 By:
	 	 AP Southeast Portfolio Partners, L.P.

	 	 	 By:
	 	 Highwoods Realty GP Corp.

	HIGHWOODS/INTERLACHEN HOLDINGS, L.P.
	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 By:
	 	 Highwoods/Florida GP Corp.

	4600 COX ROAD LLC
	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 By:
	 	 Highwoods/Florida GP Corp.

	PLAZA GIFT CARD, LLC
	 By:
	 	 Highwoods Services, Inc.

	HIGHWOODS CONSTRUCTION SERVICES, LLC
	 By:
	 	 Highwoods Services, Inc.

  
 (Signatures
continued on next page) 

					
	HIGHWOODS DLF, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	HIGHWOODS DLF II, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	PAPEC RICHMOND II, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	PAPEC WESTON I, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	PAPEC WESTON II, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	PAPEC WESTON III, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	HARBORVIEW PLAZA, LLC
	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 By:
	 	 Highwoods/Florida GP Corp.

	SPI BROOKFIELD I, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	SPI BROOKFIELD II, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	SPI BUSINESS HOLDINGS, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	SPI CENTURY PLAZA III, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	SPI JEFFERSON VILLAGE, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	SPI TRADEPORT OFFICE III, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

  
 (Signatures
continued on next page) 

							
	SPI RALEIGH CORPORATE CENTER, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	HIGHWOODS COLONNADE, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	SPI TRADEPORT PLACE V, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	HIWTP, LLC
	 	 	 By:
	 	 Highwoods Services, Inc.

	MG-HIW PEACHTREE CORNERS III, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	GROVE PARK SQUARE, LLC
	 	 	 By:
	 	 HIGHWOODS SERVICES, INC.

	HIGHWOODS WELLNESS CENTER, LLC
	 	 	 By:
	 	 HIGHWOODS SERVICES, INC.

	HIGHWOODS 3322, LLC
	 	 	 By
	 	 HIGHWOODS/FLORIDA HOLDINGS, L.P.

	 	 	 	 	 By:    HIGHWOODS/FLORIDA GP CORP.

	NICHOLS PLAZA WEST, INC.
	OZARK MOUNTAIN VILLAGE, INC.
	4551 COX ROAD LLC
	 	 	 By:
	 	 HIGHWOODS REALTY LIMITED PARTNERSHIP

	 	 	 	 	 By:    HIGHWOODS PROPERTIES, INC.

	MG-HIW METROWEST I, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	MG-HIW METROWEST II, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	5525 GRAY STREET, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	HIGHWOODS SITUS II, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	BAY CENTER I, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	HIGHWOODS KC GLENRIDGE LAND, LLC
	 By:
	 	 Highwoods Realty Limited Partnership

	 	 	 By:
	 	 Highwoods Properties, Inc.

	581 HIGHWOODS, L.P.
	 By:
	 	 Highwoods/Florida Holdings, L.P.

	 	 	 By:
	 	 Highwoods/Florida GP Corp.

		
	 By:
	 	 /s/ Edward J. Fritsch

	 Name:
	 	 Edward J. Fritsch

	 Title:
	 	 President

  
 [signature
pages continued] 

					
	LENDERS/AGENTS:	 	BANK OF AMERICA, N.A.,
	 	 	 individually in its capacity as a Lender

	 	 	 and in its capacity as Administrative Agent

			
	 	 	 By:
	 	 /s/ Will T. Bowers

	 	 	 Name:
	 	 Will T. Bowers

	 	 	 Title:
	 	 Principal

		
	 	 	BANC OF AMERICA SECURITIES LLC,
	 	 	 individually in its capacity as Sole Lead Arranger and Sole Book Manager

			
	 	 	 By:
	 	 /s/ Wesley G. Carter

	 	 	 Name:
	 	 Wesley G. Carter

	 	 	 Title:
	 	 Vice President

  
 [signature pages
continued] 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 individually in its capacity as a Lender

	 and in its capacity as Syndication Agent

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	BRANCH BANKING AND TRUST COMPANY
	 individually in its capacity as a Lender

	 and as a Co-Documentation Agent

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	FLEET NATIONAL BANK
	 individually in its capacity as a Lender

	 and as a Co-Documentation Agent

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	WACHOVIA BANK, NATIONAL ASSOCIATION
	 individually in its capacity as a Lender

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	PNC BANK, NATIONAL ASSOCIATION
	 individually in its capacity as a Lender

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	AMSOUTH BANK
	 individually in its capacity as a Lender

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	SOUTHTRUST BANK
	 individually in its capacity as a Lender

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	RBC CENTURA BANK
	 individually in its capacity as a Lender

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signature pages
continued] 

			
	UNION PLANTERS BANK
	 individually in its capacity as a Lender

		
	 By:
	 	 /s/ Authorized Signatory

	 Name:
  
	 	

	 Title:
  
	 	

  
 [end of signature
pages] 

 Schedule 1.1(b) 
  
 Non-Guarantor Subsidiaries 
  
 HRLP, LLC, a Delaware limited liability company, is a wholly owned subsidiary of the Operating Partnership. 
  
 HIW-TN, LLC, a Delaware limited liability company, is a wholly owned subsidiary of
Highwoods/Tennessee Holdings, L.P. 
  
 HIW-SE, LLC, a Delaware limited liability
company, is a wholly owned subsidiary of AP Southeast Portfolio Partners, L.P. 
  
 Highwoods/Florida, LLC, a Delaware limited liability company, is a wholly owned subsidiary of Highwoods/Florida Holdings, L.P. 
  
 Highwoods Non-Orlando, LLC, a Delaware limited liability company, is a wholly owned subsidiary of the Operating Partnership. 
  
 MG-HIW Raleigh, LLC, a Delaware limited liability company, is a wholly owned subsidiary of
Highwoods Non-Orlando, LLC. 
  
 MG-HIW Tampa, LLC, a Delaware limited liability
company, is a wholly owned subsidiary of Highwoods Non-Orlando, LLC. 
  
 MG-HIW
Atlanta, LLC, a Delaware limited liability company, is a wholly owned subsidiary of Highwoods Non-Orlando, LLC. 
  
 Highwoods Orlando, LLC (f/k/a MG-HIW, LLC), a Delaware limited liability company, is a wholly owned subsidiary of the Operating Partnership. 
  
 HIW-KC Orlando, LLC (f/k/a MG-HIW Orlando, LLC), a Delaware limited liability company, is a
wholly owned subsidiary of Highwoods Orlando, LLC. 
  
 Highwoods KC Glenridge,
LLC, a Delaware limited liability company, is a wholly owned subsidiary of the Operating Partnership.

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