Document:

PROMISSORY NOTE

 

Exhibit 10.1 Promissory Note executed by the Company in favor of Chao Jui Hsia, dated as of
November 22, 2004, in the original principal amount of $1,493,400.00.

			
	 
 	 	 
	$1,493,400.00 (U.S. Dollars)
	 	Date: November 22, 2004

PROMISSORY NOTE

FOR VALUE RECEIVED, the undersigned AESP, INC., a Florida corporation (the “Maker”)
promises to pay to the order of Chao Jui Hsia (the “Payee”) the principal sum of ONE
MILLION FOUR HUNDRED NINETY THREE THOUSAND FOUR HUNDRED AND 00/100 DOLLARS ($1,493,400.00) together
with interest thereon as set forth in this Promissory Note (the “Note”).

     1. Principal. The full principal amount of this Note shall be due and payable on
December 31, 2005, but if the date that such payment is due is not a business day, then payment
shall be due on the next following business day. All payments hereunder shall he made at the
Payee’s address set forth in the notice provision hereof or as otherwise may be designated by the
Payee in writing in accordance with the notice provision.

     2. Repayment of Interest. The full principal amount of this Note, outstanding from
time to time, shall accrue interest at the rate of six percent (6%) per annum commencing on
November l, 2004. The accrued and unpaid interest under this Note shall be due and payable on a
monthly basis. The first monthly interest payment shall be due on December 1, 2004, and each
monthly interest payment thereafter shall be due and payable on the first day of each calendar
month thereafter until the full principal and interest amount of this Note is paid in full, but if
the date that a monthly interest payment is due is not a business day, then payment shall be due on
the next following business day. All interest payments hereunder shall be made at the Payee’s
address set forth in the notice provision hereof or as otherwise may be designated by the Payee in
writing in accordance with the notice provision. Upon an event of default, as set forth in Section
7 below, and during the continuation thereof; through judgment, interest shall accrue at a rate of
nine percent (9%). All interest chargeable under this Agreement shall be computed on the basis of
a three hundred sixty (360) day year for actual days elapsed.

     3. Security. For the purpose of securing prompt and complete payment and performance
by the Maker of the obligations under this Note, the Maker hereby grants to the Payee a continuing
second priority security interest in and to, lien upon, the following property of the Maker: (1)
all goods of the Maker, including without limitation, machinery, equipment, furniture, furnishings,
fixtures, parts, supplies and motor vehicles of every kind and description, now or hereafter owned
by the Maker or in which the Maker may have or may hereafter acquire any interest, and all
replacements, additions and proceeds thereof, arising from the sale or disposition thereof, and
where applicable, the proceeds of insurance involving any of the foregoing; and (2) all inventory
of the Maker, including, but not limited to, all goods, merchandise, parts, supplies, finished
products, other tangible personal property, including such inventory as is temporarily out of
Maker’s custody or possession and including any returns upon any accounts or other proceeds,
including insurance proceeds, resulting from the sales or disposition of any of the foregoing. At
the end of each month, so long as this Note remains

1

 

outstanding, the Maker will maintain a minimum inventory value of $1,400,000, as computed in
accordance with generally accepted accounting standards. Payee has the right, upon two weeks
notice to the Maker, to conduct an audit to ensure compliance with this inventory requirement. Any
expenses of such audit will be borne by the Payee.

     4. Costs, Indemnities and Expenses. The Maker agrees to pay all filing fees and
similar charges and all costs incurred by the Payee in collecting or securing or attempting to
collect or secure this Note, including attorneys’ fees, whether or not involving litigation and/or
appellate, administrative or bankruptcy proceedings. The Maker agrees to pay any documentary stamp
taxes, intangible taxes car other taxes (except for federal or state income or franchise taxes
based on the Payee’s income) which may now or hereafter apply to this Note or any payment made in
respect of this Note, and the Maker agrees to indemnify and hold the Payee harmless from and
against any liability, costs, attorney’s fees, penalties, interest or expenses relating to any such
taxes, as and when the same may be incurred.

     5. Prepayment. This Note may be prepaid in whole or in part at any time without
penalty. Except as otherwise required by law or by the provisions of this Note, payments received
by the Payee hereunder shall be applied first against expenses and indemnities, next against
interest accrued on this Note, and next in reduction of the outstanding principal balance of this
Note.

     6. Assignment by Payee. Payee may not assign this Note without the written consent of
Maker. All of the terms of this Note shall inure to the benefit of the Payee and his successors
and assigns. This Note shall not be assignable or delegable by the Maker.

     7. Events of Default. The Payee shall have the right to accelerate the maturity of
this Note and the entire amount of principal and interest under this Note shall be immediately due
and payable upon the occurrence of an Event of Default as stated below. No remedy conferred under
this Section 7 upon the Payee is intended to be exclusive of any other remedy available to the
Payee, pursuant to the terms of this Note or otherwise. No single or partial exercise by the Payee
of any right, power or remedy hereunder shall preclude any other or further exercise thereof. Each
of the following events shall constitute a default under this Agreement (each an “Event of
Default”):

     (i) any default, whether in whole or in part, shall occur in the payment to the Payee
of principal or interest or AESP shall default in the payment of any other item comprising
the Note when due and five (5) calendar days shall have elapsed without cure thereof;

     (ii) any default by AESP, whether in whole or in part, shall occur in the due
observance or performance of any other covenant, term or provision to be performed under
this Note and fifteen (l5) calendar days shall have elapsed without cure thereof;

     (iii) AESP shall: (1) make a general assignment for the benefit of its creditors; (2)
apply for or consent to the appointment of a receiver, trustee, assignee, custodian,
sequestrator, liquidator or similar official for itself or any of its assets and properties;
(3) commence a voluntary case for relief as a debtor under the United States

2

 

Bankruptcy Code; (4) file with or otherwise submit to any governmental authority any
petition, answer or other document seeking: (A) reorganization, (B) an arrangement with
creditors or (C) to take advantage of any other present or future applicable law respecting
bankruptcy, reorganization, insolvency, readjustment of debts, relief of debtors,
dissolution or liquidation; (5) file or otherwise submit any answer or other document
admitting or failing to contest the material allegations of a petition or other document
filed or otherwise submitted against it in any proceeding under any such applicable law, or
(6) be adjudicated a bankrupt or insolvent by a court of competent jurisdiction;

     (iv) a Change of Control shall occur. For purposes hereof, a “Change of
Control” means the removal of Messrs. Slav Stein and Roman Briskin as executive officers
of the Maker and the appointment of someone other than Mr. Stein or Mr. Briskin as Chief
Executive Officer.

     8. Miscellaneous.

          (a) Entire Agreement. This Note, constitutes the entire agreement of the parties with
respect to the subject matter hereof and supersedes any prior agreement or understanding, between
the parties hereto with respect to such matters, and neither this Note nor any provision hereof may
be waived, modified, amended or, except to the extent, if any, otherwise provided in this Note,
terminated, except by a written agreement signed by the parties hereto.

          (b) Negotiated Agreement. The parties to this Note have fully participated in its
negotiation and preparation. Accordingly, this Note shall not be more strictly construed against
either of the parties.

          (c) Waivers. No waiver of any breach, default or provision hereunder shall be
considered valid unless in a writing signed by the party to be charged therewith, and no such
waiver shall be deemed a waiver of any subsequent breach or default hereunder.

          (d) Governing Law; Forum. This Note and all transactions contemplated hereby and
thereby shall he governed by and construed and enforced in accordance with the laws of the State of
Florida, without regard to principles of conflicts of law. The parties hereto hereby agree to the
exclusive jurisdiction of the state courts situated in Miami-Dade County and the parties hereby
waive any objection which they may have to the laying of venue of any such proceeding in such court
and waive any claim of inconvenient forum with respect to such venue. The parties hereto further
agree that service of process, relating to an action arising hereunder, pursuant to the notice
provision set forth in Section 8(g) hereof shall be sufficient and hereby waive any claim for
insufficiency of process as a result of a party’s use of such method of service.

          (e) Waiver of Jury Trial. THE PARTIES TO THIS NOTE HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A
MATERIAL INDUCEMENT TO THE PARTIES ENTERING INTO THIS NOTE.

3

 

          (f) Notices. All notices or other communications required or permitted to be given
pursuant to this Note shall be in writing to each party’s address sot forth below and shall he
considered as duly given: (a) on the date of delivery, if hand delivered; or (b) after two (2) days
if sent by an internationally recognized express courier service, postage or delivery charges
prepaid; or (d) after five (5) days if sent by first class certified mail, return receipt
requested, postage prepaid. Any party may change its address by giving notice, in accordance with
this provision, to the other party stating its new address.

	 	 	 	 	 	 	 
	If to Maker:	 	AESP, Inc.	 	 
	 	 	1810 N.E. 144th Street	 	 
	 	 	North Miami, FL 33181	 	 
	 	 	USA	 	 
	 	 	Attn: Slav Stein	 	 
	 
	 	 	 	 	 	 
	If to Payee:	 	Chao Jui Hsia	 	 
	 	 	2F, No. 112, Sec. 3	 	 
	 	 	Min Chuan East Rd.	 	 
	 	 	Taipai, Taiwan, ROC	 	 
	 	 	Attn: Chao Jui Hsia	 	 
	 
	 	 	 	 	 	 
	 	 	MAKER:	 	 
	 	 	
 	 	 
	 
	 	 	 	 	 	 
	 	 	AESP, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Slav Stein	 	 
	

	 	 	 	
 	 	 
	

	 	Name:
	 	Slav Stein	 	 
	

	 	Its:
	 	President & CEO	 	 

4exv10w1

 

EXHIBIT 10.1

EXECUTION COPY

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of
December    , 2004 by and among POST APARTMENT HOMES, L.P., a Georgia limited
partnership (the “Borrower”), each of the undersigned Lenders, and WACHOVIA
BANK, NATIONAL ASSOCIATION, as Agent.

     WHEREAS, the Borrower, the Lenders and the Agent have entered into that
certain Credit Agreement dated as of January 16, 2004 (the “Credit Agreement”);
and

     WHEREAS, the Borrower, the Lenders and the Agent desire to amend certain
provisions of the Credit Agreement on the terms and conditions contained
herein.

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

     Section 1. Specific Amendments to Credit Agreement. The parties hereto
agree that the Credit Agreement is amended as follows:

     (a) The Credit Agreement is amended by adding to Section 1.1. the
following definitions in the appropriate alphabetical location:

     ”Condominium Property” means (a) a Property being developed
with multiple residential condominiums on a “ground up” basis or
(b) a Multifamily Property that has been converted into
residential condominium units, in each case for the purpose of
sale. For purposes of this definition and the definition of
“Condominium Property Value” a Multifamily Property will be deemed
“converted” into residential condominium units once both of the
following have occurred: (i) notice of the conversion has been
sent to the tenants of such Property and (ii) a declaration of
condominium or other similar document is filed with the applicable
Governmental Authority.

     ”Condominium Property Value” means (i) for a Multifamily
Property converted into residential condominium units, the sum of
the following: (a) the Net Operating Income for such Property for
the four quarter period ending immediately prior to such
conversion divided by 8.00%, plus (b) 80% of cost of capital
improvements made to such Property in connection with such
conversion not to exceed 25% of the amount determined in
accordance with the preceding clause (a), minus (c) with respect
to each individual condominium unit sale, 85% of the net sale
proceeds (defined as the actual sales price less commissions, fees
and any other related expenses not to exceed 5% of the actual
sales price) from such sale; provided, however, no value will be
attributed to such a Property 24

 

 

months after its conversion, and (ii) for a Property being
developed with multiple residential condominiums on a “ground up”
basis, (a) the Construction-In-Process of such Property minus (b)
with respect to each individual condominium unit sale, 85% of the
net sale proceeds (defined as the actual sales price less
commissions, fees and any other related expenses not to exceed 5%
of the actual sales price) from such sale; provided, however, no
value will be attributed to such a Property 36 months after actual
construction on, or other physical development of, such Property
has commenced (other than pre-development site work related to
remediation and other limited construction or development in
advance of actual project construction). For purposes of
determining Condominium Property Value, Capital Reserves shall not
be deducted from Net Operating Income. In addition, no value
shall be attributable to a Condominium Property at any time
following the earlier of (x) all condominium units of such
Property having been sold or otherwise conveyed and (y) the
management of such Property having been turned over to such
Property’s homeowner’s association.

     (b) The Credit Agreement is amended by restating the definition of
“Applicable Margin” contained in Section 1.1 as follows:

     ”Applicable Margin” means the percentage per annum
determined, at any time, based on the range into which the
Borrower’s Credit Rating then falls, in accordance with the table
set forth below. The following provisions apply to the
determination of the Applicable Margin:

     (a) any change in the Borrower’s Credit Rating which would
cause it to move to a different Level in the below table shall
effect a change in the Applicable Margin on the Business Day on
which such change occurs;

     (b) as of the Agreement Date, the Applicable Margin is
determined based on Level 3;

     (c) during any period that the Borrower has received Credit
Ratings that are not equivalent, the Applicable Margin shall be
determined by the higher of such two Credit Ratings;

     (d) during any period for which the Borrower has received a
Credit Rating from only one Rating Agency, then the Applicable
Margin shall be determined based on such Credit Rating; and

     (e) during any period for which the Borrower has not received
a Credit Rating from either Rating Agency, then the Applicable
Margin shall be determined based on Level 4.

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	 	 	Borrower’s Credit Rating	 	Applicable Margin	 	Applicable Margin
	Level
	 	(S&P/Moody’s)
	 	for LIBOR Loans
	 	for Base Rate Loans

	1
	 	>BBB+/Baa1	 	 	0.65	%	 	 	<0.25%>	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 
	2
	 	BBB/Baa2	 	 	0.75	%	 	 	0.0	%
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 
	3
	 	BBB-/Baa3	 	 	0.90	%	 	 	0.0	%
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 
	4
	 	<  BBB-/Baa3	 	 	1.35	%	 	 	0.25	%
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 

     (c) The Credit Agreement is amended by restating the definition of
“EBITDA” contained in Section 1.1 in its entirety as follows:

     ”EBITDA” with respect to the Consolidated Group for any
period means (without duplication) an amount, determined on a
consolidated basis, equal to the sum of (a) the net income (or
loss) of the Consolidated Group for such period before minority
interests, exclusive of the following (but only to the extent
included in the determination of such net income (loss)): (i)
depreciation and amortization expense; (ii) Interest Expense;
(iii) all provisions for any Federal, state or other income taxes;
(iv) asset impairment and restructuring charges, and all other
extraordinary or nonrecurring gains and losses; (v) changes in
deferred taxes and other noncash items; (vi) noncash expense
associated with stock compensation; (vii) distributions on
Preferred Securities; and (viii) gains or losses from early
extinguishment of Indebtedness and redemption of Preferred
Securities (including any gains or losses in respect of any
derivative agreements or arrangements in effect that are related
to such Indebtedness or Preferred Securities), in each case on a
consolidated basis determined in accordance with GAAP applied on a
consistent basis; plus (b) Borrower’s pro rata share of “EBITDA”
from its Unconsolidated Affiliates (determined for such
Unconsolidated Affiliates in a manner consistent with the
foregoing), all as determined in accordance with GAAP; plus (c)
Net Operating Income in respect of units of Condominium Properties
prior to the sale thereof, provided that if such Net Operating
Income is a negative number, EBITDA shall be reduced only to the
extent, if any, that the amount of such negative Net Operating
Income (if considered a positive number) would exceed the
aggregate amount of any income or gain realized in respect of
sales of units of Condominium Properties during such period in
accordance with GAAP. Except as provided in the preceding clause
(c), EBITDA shall in no event include any income or gain, in
either case, realized on the sale of any portion of a Condominium
Property.

     (d) The Credit Agreement is amended by restating clauses (a) and (b) of
the definition of “Eligible Property” contained in Section 1.1. as follows:

     (a) such Property is a Multifamily Property or a Condominium
Property;

     (b) such Property is owned in fee simple, is a Designated
Property, or in the case of a Multifamily Property only, is leased
under an Eligible Ground Lease, in any case, by the Borrower or a
Subsidiary;

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     (e) The Credit Agreement is amended by designating clause (h) of the
definition of “Gross Asset Value” as clause (i) and inserting the following
immediately after clause (g) in such definition:

          (h) the Condominium Property Value of all Condominium
Properties; plus

     (f) The Credit Agreement is amended by adding to the end of the definition
of “Gross Asset Value” the following sentence:

For purposes of determining Gross Asset Value, Capital Reserves
shall not be deducted from Net Operating Income.

     (g) The Credit Agreement is amended by restating the paragraph immediately
following clause (c) of the definition of “Unencumbered Asset Value” contained
in Section 1.1. as follows:

Notwithstanding the foregoing, the sum of (without duplication)
(i) the Unencumbered Asset Value attributable to Eligible
Properties owned by Subsidiaries of the Borrower that are not
Guarantors, plus (ii) the Unencumbered Asset Value attributable to
Eligible Properties owned by Subsidiaries of the Borrower that are
not Wholly Owned Subsidiaries, plus (iii) the Unencumbered Asset
Value attributable to the Designated Properties, plus (iv) the
Unencumbered Asset Value attributable to Condominium Properties,
shall be limited to a maximum amount equal to 15% of the
Unencumbered Asset Value; provided, (x) the Unencumbered Asset
Value attributable to the Designated Properties shall be limited
to a maximum amount equal to 4% of the Unencumbered Asset Value
and (y) the Unencumbered Property Value attributable to Eligible
Properties owned by Subsidiaries of the Borrower that are not
Guarantors, Eligible Properties owned by Subsidiaries of the
Borrower that are not Wholly Owned Subsidiaries or Eligible
Properties that are Condominium Properties shall, in each case, be
limited to a maximum amount equal to 10% of the Unencumbered Asset
Value. For purposes of calculating Unencumbered Asset Value, (A)
Net Operating Income attributable to Condominium Properties shall
be excluded from Unencumbered Adjusted Net Operating Income in the
preceding clause (a) and (B) Capital Reserves shall not be
deducted from Net Operating Income.

(h) The Credit Agreement is amended by restating Section 9.1.(a) as
follows:

     (a) Maximum Leverage Ratio. The ratio of (i) Total
Indebtedness to (ii) Gross Asset Value, to exceed 0.60 to 1.0 at
any time.

(i) The Credit Agreement is amended by restating Section 9.1.(h) as
follows:

-4-

 

     (a) Minimum Unencumbered Assets Leverage Ratio. The ratio of
(i) Unencumbered Asset Value to (ii) Unsecured Indebtedness, to be
less than 1.67 to 1.00 at any time.

     (j) The Credit Agreement is amended by deleting the word “and” appearing
at the end of clause (e) of Section 9.4, restating clause (f) of Section 9.4,
adding the following new clause (g) to Section 9.4 and replacing the paragraph
immediately following clause (f) of Section 9.4, in each case, as follows:

     (f) Investments in Development Properties (including
Condominium Properties being developed on a “ground up” basis)
shall not exceed 20% of Gross Asset Value at any time; and

     (g) Investments in Condominium Properties shall not at any
time exceed (i) 7.5% of Gross Asset Value minus (ii) the
Condominium Property Value of Condominium Properties being
developed on a “ground up” basis.

In addition to the foregoing limitations, the aggregate value of
all of the items subject to the limitations in the preceding
clauses (a) through (g) shall not exceed 30% of Gross Asset Value
at any time.

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

     (a) A counterpart of this Amendment duly executed by the Borrower, the
Guarantor and each of the Lenders;

     (b) An Acknowledgment substantially in the form of Exhibit A attached
hereto, executed by each Guarantor; and

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

     Section 3. Representations. The Borrower represents and warrants to the
Agent and the Lenders that:

     (a) Authorization. The Borrower has the right and power, and has taken
all necessary action to authorize it, to execute and deliver this Amendment and
to perform its obligations hereunder and under the Credit Agreement, as amended
by this Amendment, in accordance with their respective terms. This Amendment
has been duly executed and delivered by a duly authorized officer of the GP Sub
and each of this Amendment and the Credit Agreement, as amended by this
Amendment, is a legal, valid and binding obligation of the Borrower enforceable
against the Borrower 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

- 5 -

 

generally and the availability of equitable remedies for the enforcement of
certain obligations (other than the payment of principal) contained herein or
therein may be limited by equitable principles generally.

     (b) Compliance with Laws, etc. The execution and delivery by the Borrower
of this Amendment and the performance by the Borrower of this Amendment and the
Credit Agreement, as amended by this Amendment, in accordance with their
respective terms, do not and will not, by the passage of time, the giving of
notice or otherwise: (i) require any Government Approvals or violate any
Applicable Laws (including all Environmental Laws) relating to the Borrower;
(ii) conflict with, result in a breach of or constitute a default under the
organizational documents of the Borrower or any material indenture, agreement
or other instrument to which the Borrower is a party or by which it or any of
its 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 the Borrower.

     (c) No Default. No Default or Event of Default exists as of the date
hereof nor will exist immediately after giving effect to this Amendment.

     Section 4. Reaffirmation of Representations by Borrower. The Borrower
hereby repeats and reaffirms all representations and warranties made by the
Borrower to the Agent and the Lenders in the Credit Agreement and the other
Loan Documents to which it is a party on and as of the date hereof with the
same force and effect as if such representations and warranties were set forth
in this Amendment in full (except to the extent that such representations and
warranties expressly relate solely to an earlier date (in which case such
representations and warranties shall have been true and accurate on and as of
such earlier date) and except for changes in factual circumstances or
transactions, in either event not prohibited herein).

     Section 5. Certain References. Each reference to the Credit Agreement in
any of the Loan Documents shall be deemed to be a reference to the Credit
Agreement as amended by this Amendment.

     Section 6. Expenses. The Borrower shall reimburse the Agent upon demand
for all reasonable out-of-pocket costs and expenses (including reasonable
attorneys’ fees) incurred by the Agent in connection with the preparation,
negotiation and execution of this Amendment and the other agreements and
documents executed and delivered in connection herewith.

     Section 7. Benefits. This Amendment shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
assigns.

     Section 8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

- 6 -

 

     Section 9. Effect. Except as expressly herein amended, the terms and
conditions of the Credit Agreement and the other Loan Documents remain in full
force and effect. The amendments contained herein shall be deemed to have
prospective application only, unless otherwise specifically stated herein.

     Section 10. Counterparts. This Amendment may be executed in any number
of counterparts, each of which shall be deemed to be an original and shall be
binding upon all parties, their successors and assigns.

     Section 11. Definitions. All capitalized terms not otherwise defined
herein are used herein with the respective definitions given them in the Credit
Agreement.

[Signatures on Next Page]

- 7 -

 

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
Credit Agreement to be executed as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	THE BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	POST APARTMENT HOMES, L.P.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By: Post GP Holdings, Inc., its sole general partner	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	/s/ Christopher J. Papa	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 Christopher J. Papa	 		 	 
	

	 	 	 	 	 	
	 	 	 	 
	

	 	 	 	Title:	 	Executive Vice President and Chief
Financial Officer	 	 	 	 
	

	 	 	 	 	 	
	 	 	 	 

[Signatures Continued on Next Page]

- 8 -

 

[Signature Page to First Amendment to Credit Agreement of Post Apartment Homes, L.P.]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	WACHOVIA BANK NATIONAL ASSOCIATION, as
Agent and as a Lender
	 	 	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	/s/ Cathy A. Casey	 	 	 	By:	 	 	 	/s/ John S. Misiura
	 	 	
	 	 	 	 	 	

	

	 	Name:
	 	Cathy A. Casey	 	 	 	 	 	Name:	 	John S. Misiura
	

	 	 	 	

	 	 	 	 	 	 	 	

	

	 	Title:
	 	Director	 	 	 	 	 	Title:	 	Vice President
	

	 	 	 	

	 	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SUNTRUST BANK	 	 	 	AMSOUTH BANK
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	/s/ W. John Wendler	 	 	 	By:	 	 	 	/s/ David G. Ellis
	 	 	
	 	 	 	 	 	

	

	 	Name:
	 	W. John Wendler	 	 	 	 	 	Name:	 	David G. Ellis
	

	 	 	 	

	 	 	 	 	 	 	 	

	

	 	Title:
	 	Director	 	 	 	 	 	Title:	 	AVP
	

	 	 	 	

	 	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION	 	 	 	JP MORGAN CHASE BANK, N.A.
(formerly JP Morgan Chase Bank,
for itself and as successor by
merger to Bank One, NA)

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	/s/ Wayne Robertson	 	 	 	By:	 	 	 	/s/ Susan M. Tate
	 	 	
	 	 	 	 	 	

	

	 	Name:
	 	Wayne Robertson	 	 	 	 	 	Name:	 	Susan M. Tate
	

	 	 	 	

	 	 	 	 	 	 	 	

	

	 	Title:
	 	Senior Vice President	 	 	 	 	 	Title:	 	Vice President
	

	 	 	 	

	 	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SOUTHTRUST BANK	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	/s/ Cathy A. Casey	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 	 	 
	

	 	Name:	 	Cathy A. Casey	 	 	 	 	 	 	 	 
	

	 	 	 	
	 	 	 	 	 	 	 	 
	

	 	Title:	 	Director	 	 	 	 	 	 	 	 
	

	 	 	 	
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FIRST COMMERCIAL BANK	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 	 	 
	

	 	Name:	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	
	 	 	 	 	 	 	 	 
	

	 	Title:	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	
	 	 	 	 	 	 	 	 

- 9 -

 

EXHIBIT A

FORM OF GUARANTOR ACKNOWLEDGEMENT

     THIS GUARANTOR ACKNOWLEDGEMENT dated as of December                    , 2004 (this
“Acknowledgment”) executed by each of the undersigned (the “Guarantors”) in
favor of WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”) and each
“Lender” a party to the Credit Agreement referred to below (the “Lenders”).

     WHEREAS, Post Apartment Homes, L.P. (the “Borrower”), the Lenders, and the
Agent have entered into that certain Credit Agreement dated as of January 16,
2004 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”);

     WHEREAS, each of the Guarantor executed and delivered that certain
Guaranty dated as of January 16, 2004 (as amended, restated, supplemented or
otherwise modified from time to time, the “Guaranty”) pursuant to which they
guarantied, among other things, the Borrower’s obligations under the Credit
Agreement on the terms and conditions contained in the Guaranty;

     WHEREAS, the Borrower, the Agent and the Lenders are to enter into a First
Amendment to Credit Agreement dated as of the date hereof (the “First
Amendment”), to amend the terms of the Credit Agreement on the terms and
conditions contained therein; and

     WHEREAS, it is a condition precedent to the effectiveness of the First
Amendment that the Guarantors execute and deliver this Acknowledgment.

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

     Section 1. Reaffirmation. Each Guarantor hereby reaffirms its continuing
obligations to the Agent and the Lenders under the Guaranty and agrees that the
transactions contemplated by the First Amendment shall not in any way affect
the validity and enforceability of the Guaranty, or reduce, impair or discharge
the obligations of such Guarantor thereunder.

     Section 2. Governing Law. THIS REAFFIRMATION SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

[Signatures on Next Page]

A-10

 

     IN WITNESS WHEREOF, each Guarantor has duly executed and delivered this
Guarantor Acknowledgement as of the date and year first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	POST GP HOLDINGS, INC.	 	 	 	POST LP HOLDINGS, INC.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	
	 	 	 	 	 	

	

	 	Name:
	 	 	 	 	 	 	 	Name:	 	 
	

	 	 	 	

	 	 	 	 	 	 	 	

	

	 	Title:
	 	 	 	 	 	 	 	Title:	 	 
	

	 	 	 	

	 	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	POST PROPERTIES, INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 	 	 
	

	 	Name:	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	
	 	 	 	 	 	 	 	 
	

	 	Title:	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	
	 	 	 	 	 	 	 	 

A-11

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