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Exhibit 10.1  EXECUTION VERSION            EASTGROUP PROPERTIES, L.P.  EASTGROUP PROPERTIES, INC.    $150,000,000  4.90% Series A Senior Notes due 2033  4.95% Series B Senior Notes due 2034    ______________    NOTE PURCHASE AGREEMENT  ______________    Dated as of August 16, 2022            

 

TABLE OF CONTENTS    SECTION HEADING PAGE    -i-    SECTION 1. Authorization of Notes; Guaranties. ................................................................ 1  Section 1.1. The Notes ............................................................................................. 1  Section 1.2. The Guaranties ..................................................................................... 1  SECTION 2. Sale and Purchase of Notes. ............................................................................. 2  SECTION 3. Execution; Closing. .......................................................................................... 2  SECTION 4. Conditions to Closing. ..................................................................................... 2  Section 4.1. Representations and Warranties ........................................................... 2  Section 4.2. Performance; No Default ..................................................................... 2  Section 4.3. Compliance Certificates ....................................................................... 3  Section 4.4. Opinions of Counsel ............................................................................ 3  Section 4.5. Purchase Permitted by Applicable Law, Etc........................................ 3  Section 4.6. Sale of Other Notes .............................................................................. 4  Section 4.7. Payment of Special Counsel Fees ........................................................ 4  Section 4.8. Private Placement Numbers ................................................................. 4  Section 4.9. Changes in Corporate Structure ........................................................... 4  Section 4.10. Funding Instructions ............................................................................ 4  Section 4.11. Pool Properties ..................................................................................... 4  Section 4.12. Original Guaranties .............................................................................. 4  Section 4.13. Proceedings and Documents ................................................................ 5  SECTION 5. Representations and Warranties of the Company. ........................................... 5  Section 5.1. Organization; Power and Authority ..................................................... 5  Section 5.2. Authorization, Etc ................................................................................ 5  Section 5.3. Disclosure ............................................................................................ 5  Section 5.4. Organization and Ownership of Shares of Subsidiaries;  Affiliates .............................................................................................. 6  Section 5.5. Financial Statements; Material Liabilities ........................................... 6  Section 5.6. Compliance with Laws, Other Instruments, Etc .................................. 7  Section 5.7. Governmental Authorizations, Etc....................................................... 7  Section 5.8. Litigation; Observance of Agreements, Statutes and Orders ............... 7  Section 5.9. Taxes .................................................................................................... 7  Section 5.10. Title to Property; Leases ...................................................................... 8  Section 5.11. Licenses, Permits, Etc .......................................................................... 8  Section 5.12. Compliance with ERISA...................................................................... 8  Section 5.13. Private Offering by the Company ........................................................ 9  Section 5.14. Use of Proceeds; Margin Regulations................................................ 10  Section 5.15. Existing Indebtedness; Future Liens .................................................. 10  Section 5.16. Foreign Assets Control Regulations, Etc ........................................... 11  Section 5.17. Status under Certain Statutes ............................................................. 11  Section 5.18. Environmental Matters....................................................................... 11  Section 5.19. Pool Properties ................................................................................... 12  

 

TABLE OF CONTENTS  (continued)  SECTION HEADING PAGE    -ii-    Section 5.20. No Contractual or Corporate Restrictions.......................................... 12  SECTION 6. Representations of the Purchasers. ................................................................ 12  Section 6.1. Purchase for Investment ..................................................................... 12  Section 6.2. Source of Funds ................................................................................. 12  Section 6.3. Accredited Investor ............................................................................ 14  SECTION 7. Information as to Company. .......................................................................... 14  Section 7.1. Financial and Business Information ................................................... 14  Section 7.2. Officer’s Certificate ........................................................................... 17  Section 7.3. Visitation; Professional Services ....................................................... 18  Section 7.4. Electronic Delivery ............................................................................ 18  SECTION 8. Payment and Prepayment of the Notes. ......................................................... 19  Section 8.1. Maturity.............................................................................................. 19  Section 8.2. Optional Prepayments with Make-Whole Amount............................ 19  Section 8.3. Allocation of Partial Prepayments ..................................................... 20  Section 8.4. Maturity; Surrender, Etc .................................................................... 20  Section 8.5. Purchase of Notes .............................................................................. 20  Section 8.6. Make-Whole Amount ........................................................................ 21  Section 8.7. Prepayment upon a Change of Control .............................................. 22  Section 8.8. Payments Due on Non-Business Days ............................................... 23  SECTION 9. Affirmative Covenants. .................................................................................. 23  Section 9.1. Compliance with Laws ...................................................................... 24  Section 9.2. Insurance ............................................................................................ 24  Section 9.3. Maintenance of Properties ................................................................. 24  Section 9.4. Payment of Taxes and Claims............................................................ 24  Section 9.5. Corporate Existence, Etc .................................................................... 24  Section 9.6. Books and Records ............................................................................ 25  Section 9.7. Guarantors .......................................................................................... 25  Section 9.8. Property Pool ..................................................................................... 26  Section 9.9. Co-Borrowers ..................................................................................... 27  SECTION 10. Negative Covenants ....................................................................................... 27  Section 10.1. Transactions with Affiliates ............................................................... 27  Section 10.2. Merger, Consolidation, Acquisitions, Sale of Assets, Etc ................. 28  Section 10.3. Line of Business ................................................................................. 28  Section 10.4. Economic Sanctions, Etc ................................................................... 29  Section 10.5. Financial Tests ................................................................................... 29  Section 10.6. Liens ................................................................................................... 29  Section 10.7. Indebtedness ....................................................................................... 29  Section 10.8. Redemption ........................................................................................ 29  Section 10.9. Loans and Investments ....................................................................... 30  

 

TABLE OF CONTENTS  (continued)  SECTION HEADING PAGE    -iii-    Section 10.10. No Negative Pledge ........................................................................... 31  Section 10.11. Restricted Payments ........................................................................... 31  SECTION 11. Events of Default. .......................................................................................... 32  SECTION 12. Remedies on Default, Etc .............................................................................. 34  Section 12.1. Acceleration ....................................................................................... 34  Section 12.2. Other Remedies .................................................................................. 35  Section 12.3. Rescission .......................................................................................... 35  Section 12.4. No Waivers or Election of Remedies, Expenses, Etc ........................ 35  SECTION 13. Registration; Exchange; Substitution of Notes. ............................................. 36  Section 13.1. Registration of Notes ......................................................................... 36  Section 13.2. Transfer and Exchange of Notes ........................................................ 36  Section 13.3. Replacement of Notes ........................................................................ 36  SECTION 14. Payments on Notes. ........................................................................................ 37  Section 14.1. Place of Payment................................................................................ 37  Section 14.2. Home Office Payment........................................................................ 37  SECTION 15. Expenses, Etc. ................................................................................................ 37  Section 15.1. Transaction Expenses......................................................................... 37  Section 15.2. Certain Taxes ..................................................................................... 38  Section 15.3. Survival .............................................................................................. 38  SECTION 16. Survival of Representations and Warranties; Entire Agreement ................... 39  SECTION 17. Amendment and Waiver. ............................................................................... 39  Section 17.1. Requirements ..................................................................................... 39  Section 17.2. Solicitation of Holders of Notes ........................................................ 39  Section 17.3. Binding Effect, Etc............................................................................. 40  Section 17.4. Notes Held by Company, Etc............................................................. 40  SECTION 18. Notices. .......................................................................................................... 40  SECTION 19. Reproduction of Documents. ......................................................................... 41  SECTION 20. Confidential Information. .............................................................................. 41  SECTION 21. Substitution of Purchaser. .............................................................................. 43  SECTION 22. Miscellaneous. ............................................................................................... 43  Section 22.1. Successors and Assigns...................................................................... 43  Section 22.2. Accounting Terms .............................................................................. 43  Section 22.3. Severability ........................................................................................ 43  Section 22.4. Construction, Etc................................................................................ 44  Section 22.5. Counterparts; Electronic Contracting ................................................ 44  

 

TABLE OF CONTENTS  (continued)  SECTION HEADING PAGE    -iv-    Section 22.6. Governing Law .................................................................................. 44  Section 22.7. Jurisdiction and Process; Waiver of Jury Trial .................................. 44  

 

   -v-  SCHEDULE A -- INFORMATION RELATING TO PURCHASERS  SCHEDULE B -- DEFINED TERMS   SCHEDULE 1.1(a) -- FORM OF 4.90% SERIES A SENIOR NOTE DUE 2033  SCHEDULE 1.1(b) -- FORM OF 4.95% SERIES B SENIOR NOTE DUE 2034  SCHEDULE 1.2 -- FORM OF GUARANTY  SCHEDULE 4.4(a)(1) -- FORM OF OPINION OF SPECIAL COUNSEL FOR THE OBLIGORS  SCHEDULE 4.4(a)(2) -- FORM OF OPINION OF SPECIAL NEW YORK COUNSEL FOR THE  OBLIGORS  SCHEDULE 4.4(b) -- FORM OF OPINION OF SPECIAL COUNSEL FOR THE PURCHASERS  SCHEDULE 5.3 -- DISCLOSURE MATERIALS  SCHEDULE 5.4 -- SUBSIDIARIES OF EASTGROUP PROPERTIES, INC. AND OWNERSHIP OF  EQUITY INTERESTS  SCHEDULE 5.5 -- FINANCIAL STATEMENTS  SCHEDULE 5.15 -- EXISTING INDEBTEDNESS  

 

     EASTGROUP PROPERTIES, L.P.  EASTGROUP PROPERTIES, INC.  400 W. Parkway Place, Suite 100  Ridgeland, Mississippi 39157-6005    4.90% Series A Senior Notes due 2033  4.95% Series B Senior Notes due 2034    As of August 16, 2022  TO EACH OF THE PURCHASERS    LISTED IN SCHEDULE A HERETO:   Ladies and Gentlemen:   EASTGROUP PROPERTIES, L.P., a Delaware limited partnership (the “Operating  Partnership”), and EASTGROUP PROPERTIES, INC., a Maryland corporation (the “Parent”), jointly  and severally (together with any successor thereto that becomes a party hereto pursuant to Section  10.2, collectively the “Company”), agree with each of the Purchasers as follows:   SECTION 1. AUTHORIZATION OF NOTES; GUARANTIES.  Section 1.1. The Notes.  The Company has authorized the issue and sale of  $150,000,000 aggregate principal amount of its Senior Notes, of which $75,000,000 aggregate  principal amount shall be its 4.90% Series A Senior Notes due 2033 (the “Series A Notes”) and   $75,000,000 aggregate principal amount shall be its 4.95% Series B Senior Notes due 2034 (the  “Series B Notes”; the Series A Notes and the Series B Notes (as each may be amended, restated  or otherwise modified from time to time pursuant to Section 17 and including any such notes issued  in substitution therefor pursuant to Section 13, the “Notes”).  The Series A Notes and the Series  B Notes shall be substantially in the forms set out in Schedules 1.1(a) and 1.1(b), respectively.   Certain capitalized and other terms used in this Agreement are defined in Schedule B.  References  to a “Schedule” are references to a Schedule attached to this Agreement unless otherwise specified.   References to a “Section” are references to a Section of this Agreement unless otherwise specified.  Section 1.2. The Guaranties.  On the terms and subject to the conditions set forth  herein, the obligations of the Company under this Agreement and the Notes will be unconditionally  and irrevocably guaranteed by Subsidiaries of the Parent (each being a “Guarantor” and  collectively, the “Guarantors,” which terms shall include at any time each Original Guarantor  and each other Subsidiary of the Parent that hereafter executes and delivers a Guaranty pursuant  to Section 9.7 or Section 9.8(b) but shall exclude at such time any Original Guarantor or other  Subsidiary or other Person theretofore released from its obligations as a Guarantor pursuant to  Section 9.7), pursuant to a Guaranty of such Guarantor (as amended, restated or otherwise  modified from time to time) substantially in the form of Schedule 1.2 (individually, a “Guaranty”  and collectively, the “Guaranties”, which terms shall include at any time each Guaranty executed  

 

  -2-  and delivered at the Closing pursuant to Section 4.12 or thereafter pursuant to Section 9.7 or  Section 9.8).  SECTION 2. SALE AND PURCHASE OF NOTES.  Subject to the terms and conditions of this Agreement, the Company will issue and sell to  each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for  in Section 3, Notes in the principal amount and of the series specified opposite such Purchaser’s  name in Schedule A at the purchase price of 100% of the principal amount thereof.  The  Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have  any liability to any Person for the performance or non-performance of any obligation by any other  Purchaser hereunder.  SECTION 3. EXECUTION; CLOSING.  The execution and delivery of this Agreement shall occur on August 16, 2022 (the  “Execution Date”).  The sale and purchase of the Notes to be purchased by each Purchaser shall  occur at the offices of ArentFox Schiff LLP, 1185 Avenue of the Americas, Suite 3000, New York,  New York 10036, at 11:00 a.m., New York City time, at a closing (the “Closing”) on a date on or  prior to October 12, 2022 selected by the Company, written notice of which the Company shall  have provided to each Purchaser at least seven Business Days prior thereto.  At the Closing, the  Company will deliver to each Purchaser the Notes of each series to be purchased by such Purchaser  in the form of a single Note of such series (or such greater number of Notes of such series in  denominations of at least $1,000,000 as such Purchaser may request) dated the date of the Closing  and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such  Purchaser to the Company or its order of immediately available funds in the amount of the purchase  price therefor by wire transfer of immediately available funds for the account of the Company to  the account set forth in the funding instructions delivered pursuant to Section 4.10.  If at the  Closing the Company shall fail to tender such Notes to any Purchaser as provided above in this  Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such  Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations  under this Agreement, without thereby waiving any rights such Purchaser may have by reason of  any of the conditions specified in Section 4 not having been fulfilled to such Purchaser’s  satisfaction or such failure by the Company to tender such Notes.  SECTION 4. CONDITIONS TO CLOSING.  Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser  at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing,  of the following conditions:  Section 4.1. Representations and Warranties.  The representations and warranties of  the Obligors in the Transaction Documents shall be correct on the Execution Date and at the  Closing.  Section 4.2. Performance; No Default.  The Obligors shall have performed and  complied with all their respective agreements and conditions contained in the Transaction  Documents to which the Obligors are parties required to be performed or complied with by them  

 

  -3-  prior to or at the Closing.  Before and after giving effect to the issue and sale of the Notes (and the  application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of  Default shall have occurred and be continuing.  Neither the Company nor any Subsidiary shall  have entered into any transaction since the date of the Presentation that would have been prohibited  by Section 9 or Section 10 had such Section applied since such date.  Section 4.3. Compliance Certificates.    (a) Officer’s Certificate.  The Company shall have delivered to such Purchaser  an Officer’s Certificate, dated the date of the Closing, certifying that the conditions  specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.  (b) Secretary’s Certificate.  The Company shall have delivered to such  Purchaser a certificate of its Secretary or Assistant Secretary, dated the date of the Closing,  certifying as to (i) the resolutions attached thereto and other corporate proceedings relating  to the authorization, execution and delivery of the Notes and this Agreement and (ii) the  Company’s Organizational Documents as then in effect.    (c) Guarantors’ Certificates.  Comparable certificates shall be provided in  respect of each Original Guarantor.  Section 4.4. Opinions of Counsel.  Such Purchaser shall have received opinions in form  and substance satisfactory to such Purchaser, dated the date of the Closing (a) from (1) Butler  Snow LLP, counsel for the Company and the Original Guarantors, covering the matters set forth  in Schedule 4.4(a)(1) and (2) Bond Schoeneck & King PLLC, New York counsel for the Company  and Original Guarantors, covering the matters set forth in Schedule 4.4(a)(2), in each case covering  such other matters incident to the transactions contemplated hereby as such Purchaser or its  counsel may reasonably request (and the Company hereby instructs its counsel to deliver such  opinions to the Purchasers) and (b) from ArentFox Schiff LLP, the Purchasers’ special counsel in  connection with such transactions, substantially in the form set forth in Schedule 4.4(b) and  covering such other matters incident to such transactions as such Purchaser may reasonably  request.  Section 4.5. Purchase Permitted by Applicable Law, Etc.  On the date of the Closing,  such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each  jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section  1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance  companies without restriction as to the character of the particular investment, (b) not violate any  applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of  Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty  or liability under or pursuant to any applicable law or regulation, which law or regulation was not  in effect on the Execution Date.  If requested by such Purchaser, such Purchaser shall have received  an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably  specify to enable such Purchaser to determine whether such purchase is so permitted.  

 

  -4-  Section 4.6. Sale of Other Notes.  Contemporaneously with the Closing the Company  shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased  by it at the Closing as specified in Schedule A.  Section 4.7. Payment of Special Counsel Fees.  Without limiting Section 15.1, the  Company shall have paid on or before the Execution Date and the date of the Closing the fees,  charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4(b) to the  extent reflected in a statement of such counsel rendered to the Company at least one Business Day  prior to such date.  Section 4.8. Private Placement Numbers.  A Private Placement Number issued by  CUSIP Global Services (in cooperation with the SVO) shall have been obtained for each series of  the Notes.  Section 4.9. Changes in Corporate Structure.  Neither the Operating Partnership nor  the Parent shall have changed its jurisdiction of incorporation or organization, as applicable, or  been a party to any merger or consolidation or succeeded to all or any substantial part of the  liabilities of any other entity, at any time following the date of the most recent financial statements  referred to in Schedule 5.5.  Section 4.10. Funding Instructions.  At least five Business Days prior to the date of the  Closing, each Purchaser shall have received written instructions signed by a Responsible Officer  on letterhead of the Company directing the manner of the payment of the purchase price for the  Notes and setting forth (a) the name and address of the transferee bank and the name and telephone  number of a contact person at such bank, (b) such transferee bank’s ABA number, (c) the account  name and number into which the purchase price for the Notes is to be deposited and (d) the name  and telephone number of a Responsible Officer of the Company responsible for (i) verifying  receipt of the funds and (ii) verifying the information set forth in the instructions.  At the request  of any Purchaser (which may be by email), an identifiable Responsible Officer shall confirm the  written instructions by a live videoconference made available to the Purchasers no later than three  Business Days prior to the date of the Closing.  Each Purchaser also has the right, but not the  obligation, upon written notice (which may be by email) to the Company, to elect to deliver a  micro deposit (less than $51.00) to the account identified in the written instructions no later than  two Business Days prior to Closing.  If a Purchaser delivers a micro deposit, a Responsible Officer  must verbally verify the receipt and amount of the micro deposit to such Purchaser on a telephone  call initiated by such Purchaser prior to Closing.  The Company shall not be obligated to return the  amount of the micro deposit, nor will the amount of the micro deposit be netted against the  Purchaser’s purchase price of the Notes.  Section 4.11. Pool Properties.  The Company shall have delivered to such Purchaser an  Officer’s Certificate certifying the Properties in the Pool.  Section 4.12. Original Guaranties.  Each of the Original Guarantors shall have duly  executed and delivered to such Purchaser a Guaranty and all such Guaranties shall be in full force  and effect.  

 

  -5-  Section 4.13. Proceedings and Documents.  All corporate and other proceedings in  connection with the transactions contemplated by this Agreement and all documents and  instruments incident to such transactions shall be satisfactory to such Purchaser and its special  counsel, and such Purchaser and its special counsel shall have received all such counterpart  originals or certified or other copies of such documents as such Purchaser or such special counsel  may reasonably request.  SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Operating Partnership and the Parent, jointly and severally, represent and warrant to  each Purchaser that:  Section 5.1. Organization; Power and Authority.  Each Obligor is a corporation or  other legal entity duly organized, validly existing and in good standing under the laws of its  jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and  is in good standing in each jurisdiction in which such qualification is required by law, other than  those jurisdictions as to which the failure to be so qualified or in good standing could not,  individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each  Obligor has the power and authority to own or hold under lease the Properties it purports to own  or hold under lease, to transact the business it transacts and proposes to transact, to execute and  deliver this Agreement, the Notes, and each other Transaction Document to which it is a party, as  applicable, and to perform the provisions hereof and thereof.  No Obligor is subject to any  instrument or agreement which would materially prevent it from conducting its business as it is  now conducted or as it is contemplated to be conducted.  Section 5.2. Authorization, Etc.  The Transaction Documents have been duly  authorized by all necessary corporate or other company action on the part of the Obligors party  thereto, as applicable, and this Agreement and the Guaranties constitute, and upon execution and  delivery thereof each Note will constitute, a legal, valid and binding obligation of each of the  Obligors party thereto, as applicable, enforceable against such Obligors in accordance with their  respective terms, except as such enforceability may be limited by (a) applicable bankruptcy,  insolvency, reorganization, moratorium or other similar laws affecting the enforcement of  creditors’ rights generally and (b) general principles of equity (regardless of whether such  enforceability is considered in a proceeding in equity or at law).  Section 5.3. Disclosure.  The Company, through its agent, BofA Securities, Inc., has  delivered to each Purchaser a copy of the Investor Presentation, dated June 29, 2022 (the  “Presentation”), relating to the transactions contemplated hereby.  The Presentation fairly  describes, in all material respects, the general nature of the business and principal properties of the  Company and its Subsidiaries.  This Agreement, the Presentation, the financial statements listed  in Schedule 5.5 and the documents, certificates or other writings delivered to the Purchasers by or  on behalf of the Company on or prior to July 12, 2022 in connection with the transactions  contemplated hereby and identified in Schedule 5.3 (this Agreement, the Presentation and such  documents, certificates or other writings and such financial statements delivered to each Purchaser  being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain  any untrue statement of a material fact or omit to state any material fact necessary to make the  statements therein not misleading in light of the circumstances under which they were made.   

 

  -6-  Except as disclosed in the Disclosure Documents, since December 31, 2021, there has been no  change in the financial condition, operations, business, Properties or prospects of the Company or  any Subsidiary except changes that could not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect.  There is no fact known to the Company that could  reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in  the Disclosure Documents.  Section 5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates.    (a) Schedule 5.4 contains (except as noted therein) complete and correct lists  of (i) the Company’s Subsidiaries, showing, as to each Subsidiary, the name thereof, the  jurisdiction of its organization, and the percentage of shares of each class of its capital stock  or similar Equity Interests outstanding owned by the Company and each other Subsidiary,  (ii) the Company’s Affiliates, other than Subsidiaries, and (iii) the Company’s directors  and senior officers.  (b) All of the outstanding shares of capital stock or similar Equity Interests of  each Subsidiary shown in Schedule 5.4 as being owned by the Company and its  Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by  the Company or another Subsidiary free and clear of any Lien that is prohibited by this  Agreement.  (c) Each Subsidiary is a corporation or other legal entity duly organized, validly  existing and, where applicable, in good standing under the laws of its jurisdiction of  organization, and is duly qualified as a foreign corporation or other legal entity and, where  applicable, is in good standing in each jurisdiction in which such qualification is required  by law, other than those jurisdictions as to which the failure to be so qualified or in good  standing could not, individually or in the aggregate, reasonably be expected to have a  Material Adverse Effect.  Each such Subsidiary has the corporate or other power and  authority to own or hold under lease the Properties it purports to own or hold under lease  and to transact the business it transacts and proposes to transact.  (d) No Subsidiary is subject to any legal, regulatory, contractual or other  restriction (other than the agreements listed on Schedule 5.4 and customary limitations  imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to  pay dividends out of profits or make any other similar distributions of profits to the  Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar  Equity Interests of such Subsidiary.  (e) The Company has no Subsidiaries (excluding Wholly-Owned Subsidiaries  which have executed a Guaranty) which individually or in the aggregate own more than  10% in value of the consolidated assets of the Company and its Subsidiaries, as determined  in accordance with Generally Accepted Accounting Principles.  Each of the Company’s  Subsidiaries is a “qualified REIT subsidiary” under Section 856 of the Code.  Section 5.5. Financial Statements; Material Liabilities.  The Company has delivered  to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on  

 

  -7-  Schedule 5.5.  All of such financial statements (including in each case the related schedules and  notes) fairly present in all material respects the consolidated financial position of the Company  and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated  results of their operations and cash flows for the respective periods so specified and have been  prepared in accordance with Generally Accepted Accounting Principles consistently applied  throughout the periods involved except as set forth in the notes thereto (subject, in the case of any  interim financial statements, to normal year-end adjustments).  The Company and its Subsidiaries  do not have any Material liabilities that are not disclosed in the Disclosure Documents.  Section 5.6. Compliance with Laws, Other Instruments, Etc.  The execution, delivery  and performance by the Company of this Agreement and the Notes and by the Obligors of the  other Transaction Documents to which they are a party, as applicable, will not (a) contravene,  result in any breach of, or constitute a default under, or result in the creation of any Lien in respect  of any Property of any Obligor or any of their respective Subsidiaries under, any indenture,  mortgage, deed of trust, loan, purchase or credit agreement, lease, Organizational Document,  shareholders agreement or any other agreement or instrument to which such Obligor is bound or  by which such Obligor or any of its Subsidiaries or any of their Properties may be bound or  affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any  order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to  any Obligor or any other Subsidiary or (c) violate any Legal Requirement applicable to any Obligor  or any other Subsidiary.  Section 5.7. Governmental Authorizations, Etc.  No consent, approval or  authorization of, or registration, filing or declaration with, any Governmental Authority is required  in connection with the execution, delivery or performance by the Company of this Agreement or  the Notes or by the Obligors of the other Transaction Documents to which they are a party, as  applicable.  Section 5.8. Litigation; Observance of Agreements, Statutes and Orders.    (a) There are no actions, suits, investigations or proceedings pending or, to the  best knowledge of the Company, threatened against or affecting any Obligor or any other  Subsidiary or any Property of any Obligor or any other Subsidiary in any court or before  any arbitrator of any kind or before or by any Governmental Authority that could,  individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  (b) No Obligor or any other Subsidiary is (i) in default under any agreement or  instrument to which it is a party or by which it is bound, (ii) in violation of any order,  judgment, decree or ruling of any court, arbitrator or Governmental Authority or (iii) in  violation of any Legal Requirement (including, without limitation, Environmental Laws,  the USA PATRIOT Act or any of the other laws and regulations that are referred to in  Section 5.16), which default or violation could, individually or in the aggregate, reasonably  be expected to have a Material Adverse Effect.  Section 5.9. Taxes.  Each Obligor has filed all tax returns that are required to have been  filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and  all other taxes and assessments levied upon them or their Properties, assets, income or franchises,  

 

  -8-  to the extent such taxes and assessments have become due and payable and before they have  become delinquent, except for any taxes and assessments (a) the amount of which, individually or  in the aggregate, is not Material or (b) the amount, applicability or validity of which is currently  being contested in good faith by appropriate proceedings and with respect to which the Company  or another Obligor, as the case may be, has established adequate reserves in accordance with  Generally Accepted Accounting Principles.  The Company knows of no basis for any other tax or  assessment that could, individually or in the aggregate, reasonably be expected to have a Material  Adverse Effect.  The charges, accruals and reserves on the books of the Company and its  Subsidiaries in respect of U.S. federal, state or other taxes for all fiscal periods are adequate.  The  U.S. federal income tax liabilities of the Company and its Subsidiaries have been finally  determined (whether by reason of completed audits or the statute of limitations having run) for all  fiscal years up to and including the fiscal year ended December 31, 2017.  Section 5.10. Title to Property; Leases.  The Obligors have good and sufficient title to  their respective Properties that individually or in the aggregate are Material, including all such  Properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported  to have been acquired by an Obligor after such date (except as sold or otherwise disposed of in the  ordinary course of business), in each case free and clear of Liens prohibited by this Agreement.   All leases that individually or in the aggregate are Material are valid and subsisting and are in full  force and effect in all material respects.  Section 5.11. Licenses, Permits, Etc.    (a) The Company and its Subsidiaries own or possess all licenses, permits,  franchises, authorizations, patents, copyrights, proprietary software, service marks,  trademarks and trade names, or rights thereto, that individually or in the aggregate are  Material, without known conflict with the rights of others.  (b) To the best knowledge of the Company, no product or service of the  Company or any of its Subsidiaries infringes in any material respect any license, permit,  franchise, authorization, patent, copyright, proprietary software, service mark, trademark,  trade name or other right owned by any other Person.  (c) To the best knowledge of the Company, there is no Material violation by  any Person of any right of the Company or any of its Subsidiaries with respect to any  license, permit, franchise, authorization, patent, copyright, proprietary software, service  mark, trademark, trade name or other right owned or used by the Company or any of its  Subsidiaries.  Section 5.12. Compliance with ERISA.    (a) The Company and each ERISA Affiliate, if any, have operated and  administered each Plan in compliance with all applicable laws except for such instances of  noncompliance as have not resulted in and could not, individually or in the aggregate,  reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor  any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the  penalty or excise tax provisions of the Code relating to employee benefit plans (as defined  

 

  -9-  in section 3 of ERISA), and no event, transaction or condition has occurred or exists that  could, individually or in the aggregate, reasonably be expected to result in the incurrence  of any such liability by the Company or any ERISA Affiliate, or in the imposition of any  Lien on any of the rights, Properties or assets of the Company or any ERISA Affiliate, in  either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any  such penalty or excise tax provisions under the Code or federal law or section 4068 of  ERISA or by the granting of a security interest in connection with the amendment of a  Plan, other than such liabilities or Liens as would not be individually or in the aggregate  Material.  (b) The present value of the aggregate benefit liabilities under each of the Plans  (other than Multiemployer Plans), determined as of the end of such Plan’s most recently  ended plan year on the basis of the actuarial assumptions specified for funding purposes in  such Plan’s most recent actuarial valuation report, did not exceed the aggregate current  value of the assets of such Plan allocable to such benefit liabilities.  The term “benefit  liabilities” has the meaning specified in section 4001 of ERISA and the terms “current  value” and “present value” have the meaning specified in section 3 of ERISA.  (c) The Company and its ERISA Affiliates have not incurred withdrawal  liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or  4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are  Material.  (d) The expected postretirement benefit obligation (determined as of the last  day of the Company’s most recently ended fiscal year in accordance with Financial  Accounting Standards Board Accounting Standards Codification Topic 715-60, without  regard to liabilities attributable to continuation coverage mandated by section 4980B of the  Code) of the Company and its Subsidiaries is not Material.  (e) The execution and delivery of this Agreement and the issuance and sale of  the Notes hereunder will not involve any transaction that is subject to the prohibitions of  section 406 of ERISA or in connection with which a tax could be imposed pursuant to  section 4975(c)(1)(A)-(D) of the Code.  The representation by the Company to each  Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject  to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the  funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser.  (f) The Obligors and their Subsidiaries do not have any Non-U.S. Plans.  Section 5.13. Private Offering by the Company.  Neither the Company nor anyone  acting on its behalf has offered, during a period of at least six months prior to the date of such  offer, the Notes, the Guaranties or any similar Securities for sale to, or solicited any offer to buy  the Notes, the Guaranties or any similar Securities from, or otherwise approached or negotiated in  respect thereof with, any Person other than the Purchasers and not more than 15 other Institutional  Investors, each of which has been offered the Notes, the Guaranties or such similar Securities at a  private sale for investment and not through any form of general solicitation, advertising, seminar  or other public process.  Neither the Company nor anyone acting on its behalf has taken, or will  

 

  -10-  take, any action that would subject the issuance or sale of the Notes or the execution and delivery  of the Guaranties to the registration requirements of section 5 of the Securities Act or to the  registration requirements of any Securities or blue sky laws of any applicable jurisdiction.  Section 5.14. Use of Proceeds; Margin Regulations.  The Company will apply the  proceeds of the sale of the Notes hereunder for refinancing of debt and other general corporate  purposes.  No part of the proceeds from the sale of the Notes hereunder will be used, directly or  indirectly, for the purpose of buying or carrying any margin stock within the meaning of  Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the  purpose of buying or carrying or trading in any Securities under such circumstances as to involve  the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker  or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not  constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries  and the Company does not have any present intention that margin stock will constitute more than  5% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose  of buying or carrying” shall have the meanings assigned to them in said Regulation U.  Section 5.15. Existing Indebtedness; Future Liens.    (a) Except as described therein, Schedule 5.15 sets forth a complete and correct  list of all outstanding Indebtedness of the Company and its Subsidiaries as of March 31,  2022 (including descriptions of the obligors and obligees, principal amounts outstanding,  any collateral therefor and any Guaranties thereof), since which date there has been no  Material change in the amounts, interest rates, sinking funds, installment payments or  maturities of the Indebtedness of the Company or its Subsidiaries.  Neither the Company  nor any Subsidiary is in default and no waiver of default is currently in effect, in the  payment of any principal or interest on any Indebtedness of the Company or such  Subsidiary and no event or condition exists with respect to any Indebtedness of the  Company or any Subsidiary that would permit (or that with notice or the lapse of time, or  both, would permit) one or more Persons to cause such Indebtedness to become due and  payable before its stated maturity or before its regularly scheduled dates of payment.  (b) Except as disclosed in Schedule 5.15, neither the Company nor any  Subsidiary has agreed or consented to cause or permit any of its Property, whether now  owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or to cause  or permit in the future (upon the happening of a contingency or otherwise) any of its  Property, whether now owned or hereafter acquired, to be subject to a Lien that secures  Indebtedness.  (c) Neither the Company nor any Subsidiary is a party to, or otherwise subject  to any provision contained in, any instrument evidencing Indebtedness of the Company or  such Subsidiary, any agreement relating thereto or any other agreement (including, but not  limited to, its Organizational Documents) which limits the amount of, or otherwise imposes  restrictions on the incurring of, Indebtedness of the Company or any Subsidiary, except as  disclosed in Schedule 5.15.    

 

  -11-  Section 5.16. Foreign Assets Control Regulations, Etc.    (a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii)  has been notified that its name appears or may in the future appear on a State Sanctions  List or (iii) is a target of sanctions that have been imposed by the United Nations or the  European Union.  (b) Neither the Company nor any Controlled Entity (i) has violated, been found  in violation of, or been charged or convicted under, any applicable U.S. Economic  Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the  Company’s knowledge, is under investigation by any Governmental Authority for possible  violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti- Corruption Laws.  (c) No part of the proceeds from the sale of the Notes hereunder:  (i) constitutes or will constitute funds obtained on behalf of any  Blocked Person or will otherwise be used by the Company or any Controlled Entity,  directly or indirectly, (A) in connection with any investment in, or any transactions  or dealings with, any Blocked Person, (B) for any purpose that would cause any  Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise  in violation of any U.S. Economic Sanctions Laws;  (ii) will be used, directly or indirectly, in violation of, or cause any  Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or  (iii) will be used, directly or indirectly, for the purpose of making any  improper payments, including bribes, to any Governmental Official or commercial  counterparty in order to obtain, retain or direct business or obtain any improper  advantage, in each case which would be in violation of, or cause any Purchaser to  be in violation of, any applicable Anti-Corruption Laws.  (d) The Company has established procedures and controls which it reasonably  believes are adequate (and otherwise comply with applicable law) to ensure that the  Company and each Controlled Entity is and will continue to be in compliance with all  applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti- Corruption Laws.  Section 5.17. Status under Certain Statutes.  Neither the Company nor any Subsidiary  is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility  Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the  Federal Power Act, as amended, nor is the Company a “commodity pool” as that term is defined  under the Commodity Exchange Act.  Section 5.18. Environmental Matters.    (a) Neither the Company nor any Subsidiary has knowledge of any claim or has  received any notice of any claim and no proceeding has been instituted asserting any claim  

 

  -12-  against the Company or any of its Subsidiaries or any of their respective real properties or  other assets now or formerly owned, leased or operated by any of them, alleging any  damage to the environment or violation of any Environmental Laws, except, in each case,  such as could not reasonably be expected to result in a Material Adverse Effect.   (b) Neither the Company nor any Subsidiary has knowledge of any facts which  would give rise to any claim, public or private, of violation of Environmental Laws or  damage to the environment emanating from, occurring on or in any way related to real  properties now or formerly owned, leased or operated by any of them or to other assets or  their use, except, in each case, such as could not, individually or in the aggregate,  reasonably be expected to result in a Material Adverse Effect.   (c) Neither the Company nor any Subsidiary has stored any Hazardous  Materials on real properties now or formerly owned, leased or operated by any of them in  a manner which is contrary to any Environmental Law that could, individually or in the  aggregate, reasonably be expected to result in a Material Adverse Effect.   (d) Neither the Company nor any Subsidiary has disposed of any Hazardous  Materials in a manner which is contrary to any Environmental Law that could, individually  or in the aggregate, reasonably be expected to result in a Material Adverse Effect.   (e) All buildings on all real properties now owned, leased or operated by the  Company or any Subsidiary are in compliance with applicable Environmental Laws, except  where failure to comply could not, individually or in the aggregate, reasonably be expected  to result in a Material Adverse Effect.  Section 5.19. Pool Properties.  As of the Execution Date, the Properties in the Pool are  listed on the attachment to the Officer’s Certificate being delivered pursuant to Section 4.11 and  each such Property complies with the requirements of Section 9.8.  Section 5.20. No Contractual or Corporate Restrictions.  No Obligor is a party to, or  bound by, any contract, agreement or charter or other corporate restriction materially and adversely  affecting its business, Property, assets, operations or condition, financial or otherwise.  SECTION 6. REPRESENTATIONS OF THE PURCHASERS.  Section 6.1. Purchase for Investment.  Each Purchaser severally represents that it is  purchasing the Notes for its own account or for one or more separate accounts maintained by such  Purchaser or for the account of one or more pension or trust funds and not with a view to the  distribution thereof, provided that the disposition of such Purchaser’s or their property shall at all  times be within such Purchaser’s or their control.  Each Purchaser understands that the Notes have  not been registered under the Securities Act and may be resold only if registered pursuant to the  provisions of the Securities Act or if an exemption from registration is available, except under  circumstances where neither such registration nor such an exemption is required by law, and that  the Company is not required to register the Notes.  Section 6.2. Source of Funds.  Each Purchaser severally represents that at least one of  the following statements is an accurate representation as to each source of funds (a “Source”) to  

 

  -13-  be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser  hereunder:  (a) the Source is an “insurance company general account” (as the term is  defined in the United States Department of Labor’s Prohibited Transaction Exemption  (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual  statement for life insurance companies approved by the NAIC (the “NAIC Annual  Statement”)) for the general account contract(s) held by or on behalf of any employee  benefit plan together with the amount of the reserves and liabilities for the general account  contract(s) held by or on behalf of any other employee benefit plans maintained by the  same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee  organization in the general account do not exceed 10% of the total reserves and liabilities  of the general account (exclusive of separate account liabilities) plus surplus as set forth in  the NAIC Annual Statement filed with such Purchaser’s state of domicile; or  (b) the Source is a separate account that is maintained solely in connection with  such Purchaser’s fixed contractual obligations under which the amounts payable, or  credited, to any employee benefit plan (or its related trust) that has any interest in such  separate account (or to any participant or beneficiary of such plan (including any  annuitant)) are not affected in any manner by the investment performance of the separate  account; or  (c) the Source is either (i) an insurance company pooled separate account,  within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the  meaning of PTE 91-38 and, except as disclosed by such Purchaser to the Company in  writing pursuant to this clause (c), no employee benefit plan or group of plans maintained  by the same employer or employee organization beneficially owns more than 10% of all  assets allocated to such pooled separate account or collective investment fund; or  (d) the Source constitutes assets of an “investment fund” (within the meaning  of Part VI of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional  asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no  employee benefit plan’s assets that are managed by the QPAM in such investment fund,  when combined with the assets of all other employee benefit plans established or  maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of  the QPAM Exemption) of such employer or by the same employee organization and  managed by such QPAM, represent more than 20% of the total client assets managed by  such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied,  neither the QPAM nor a person controlling or controlled by the QPAM maintains an  ownership interest in the Company that would cause the QPAM and the Company to be  “related” within the meaning of Part VI(h) of the QPAM Exemption and (i) the identity of  such QPAM and (ii) the names of any employee benefit plans whose assets in the  investment fund, when combined with the assets of all other employee benefit plans  established or maintained by the same employer or by an affiliate (within the meaning of  Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee  organization, represent 10% or more of the assets of such investment fund, have been  disclosed to the Company in writing pursuant to this clause (d); or  

 

  -14-  (e) the Source constitutes assets of a “plan(s)” (within the meaning of Part  IV(h) of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset  manager” or “INHAM” (within the meaning of Part IV(a) of the INHAM Exemption), the  conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the  INHAM nor a person controlling or controlled by the INHAM (applying the definition of  “control” in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the  Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit  plan(s) whose assets constitute the Source have been disclosed to the Company in writing  pursuant to this clause (e); or  (f) the Source is a governmental plan; or  (g) the Source is one or more employee benefit plans, or a separate account or  trust fund comprised of one or more employee benefit plans, each of which has been  identified to the Company in writing pursuant to this clause (g); or  (h) the Source does not include assets of any employee benefit plan, other than  a plan exempt from the coverage of ERISA.  As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and  “separate account” shall have the respective meanings assigned to such terms in section 3 of  ERISA.  Section 6.3. Accredited Investor.  Each Purchaser severally represents that it is an  “accredited investor” (as defined in Rule 501(a)(1), (2), (3), (7) or (9) of Regulation D under the  Securities Act) acting for its own account (and not for the account of others) or as a fiduciary or  agent for others (which others are also “accredited investors”).   SECTION 7. INFORMATION AS TO COMPANY.  Section 7.1. Financial and Business Information.  The Company shall deliver to each  Purchaser and each holder of a Note that is an Institutional Investor:  (a) Quarterly Statements – upon the earlier of (1) the date by which the Parent’s  quarterly financial statements are required to be delivered under any Material Credit  Facility and (2) five Business Days greater than the period applicable to the filing of the  Parent’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the SEC regardless of  whether the Parent is subject to the filing requirements thereof, duplicate copies of,  (i) a consolidated balance sheet of the Company and its Subsidiaries as  at the end of such quarter, and  (ii) consolidated statements of income, changes in equity and cash flows  of the Company and its Subsidiaries, for such quarter and (in the case of the second  and third quarters) for the portion of the fiscal year ending with such quarter,  setting forth in each case in comparative form the figures for the  corresponding periods in the previous fiscal year, all in reasonable detail, prepared in  

 

  -15-  accordance with Generally Accepted Accounting Principles applicable to quarterly  financial statements generally, and certified by a Senior Financial Officer as fairly  presenting, in all material respects, the financial position of the companies being reported  on and their results of operations and cash flows, subject to changes resulting from year- end adjustments;  (b) Annual Statements – upon the earlier of (1) the date by which the Parent’s  annual financial statements are required to be delivered under any Material Credit Facility  and (2) five Business Days greater than the period applicable to the filing of the Parent’s  Annual Report on Form 10-K (the “Form 10-K”) with the SEC regardless of whether the  Parent is subject to the filing requirements thereof, duplicate copies of,  (i) a consolidated balance sheet of the Company and its Subsidiaries as  at the end of such year, and  (ii) consolidated statements of income, changes in equity and cash flows  of the Company and its Subsidiaries for such year,  setting forth in each case in comparative form the figures for the previous  fiscal year, all in reasonable detail, prepared in accordance with Generally Accepted  Accounting Principles, and accompanied by an opinion thereon (without a “going concern”  or similar qualification or exception and without any qualification or exception as to the  scope of the audit on which such opinion is based) of independent public accountants of  recognized national standing, which opinion shall state that such financial statements  present fairly, in all material respects, the financial position of the companies being  reported upon and their results of operations and cash flows and have been prepared in  conformity with Generally Accepted Accounting Principles, and that the examination of  such accountants in connection with such financial statements has been made in accordance  with the standards of the Public Company Accounting Oversight Board (United States),  and that such audit provides a reasonable basis for such opinion in the circumstances;  (c) SEC and Other Reports – promptly upon their becoming available, one copy  of (i) each financial statement, report or notice sent by the Company or any Subsidiary to  its principal lending banks as a whole (excluding information sent to such banks in the  ordinary course of administration of a bank facility, such as information relating to pricing  and borrowing availability, but including notice regarding any changes in the capitalization  rate used therein for the purpose of calculating the value of operating real estate assets of  the Company and its Subsidiaries thereunder) or to its public Securities holders generally,  and (ii) each regular or periodic report, each registration statement (without exhibits except  as expressly requested by such Purchaser or holder), each proxy statement and each  prospectus and all amendments thereto filed by the Company or any Subsidiary with the  SEC;  (d) Notice of Default or Event of Default; Material Adverse Change; Material  Litigation – promptly, and in any event within five Business Days after a Responsible  Officer obtains actual knowledge of the existence of (i) any Default or Event of Default or  that any Person has given any notice or taken any action with respect to a claimed default  

 

  -16-  hereunder or that any Person has given any notice or taken any action with respect to a  claimed default of the type referred to in Section 11(e), (ii) the institution or threatened  institution of any lawsuit or proceeding affecting any Obligor in which the claim exceeds  the lesser of (A) $5,000,000 or (B) the amount of applicable insurance coverage maintained  by such Obligor or (iii) any Material Adverse Change, in each case, a written notice  specifying the nature and, if applicable, period of existence thereof and what action the  Company is taking or proposes to take with respect thereto;  (e) ERISA Matters – promptly, and in any event within five Business Days after  a Responsible Officer obtains actual knowledge of the following, a written notice setting  forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate  proposes to take with respect thereto:  (i) with respect to any Plan, any reportable event, as defined in section  4043(c) of ERISA and the regulations thereunder, for which notice thereof has not  been waived pursuant to such regulations as in effect on the Execution Date; or  (ii) the taking by the PBGC of steps to institute, or the threatening by  the PBGC of the institution of, proceedings under section 4042 of ERISA for the  termination of, or the appointment of a trustee to administer, any Plan, or the receipt  by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that  such action has been taken by the PBGC with respect to such Multiemployer Plan;  or  (iii) any event, transaction or condition that could result in the incurrence  of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of  ERISA or the penalty or excise tax provisions of the Code relating to employee  benefit plans, or in the imposition of any Lien on any of the rights, Properties or  assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA  or such penalty or excise tax provisions, if such liability or Lien, taken together  with any other such liabilities or Liens then existing, could reasonably be expected  to have a Material Adverse Effect;  (f) Notices from Governmental Authority – promptly, and in any event within  30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any  federal or state Governmental Authority relating to any order, ruling, statute or other law  or regulation that could reasonably be expected to have a Material Adverse Effect;  (g) Resignation or Replacement of Auditors – within 10 days following the date  on which the Company’s auditors resign or the Company elects to change auditors, as the  case may be, notification thereof, together with such further information as the Required  Holders may request; and  (h) Requested Information – with reasonable promptness, such other data and  information relating to the business, operations, affairs, financial condition, assets or  Properties of the Company or any of its Subsidiaries (including, but without limitation,  actual copies of the Parent’s Form 10-Q and Form 10-K) or relating to the ability of the  

 

  -17-  Obligors to perform their respective obligations hereunder and under the Notes and the  other Transaction Documents, as applicable, as from time to time may be reasonably  requested by any such Purchaser or holder of a Note.  Section 7.2. Officer’s Certificate.  The Company shall, within 50 days after the end of  each quarter (except the last quarter) of each fiscal year of the Parent, and within 100 days after  the end of each fiscal year of the Parent, deliver to each Purchaser and each holder of a Note a  certificate of a Senior Financial Officer:  (a) Covenant Compliance – setting forth the information from the financial  statements delivered pursuant to Section 7.1(a) or Section 7.1(b) that is required in order  to establish whether the Company was in compliance with the requirements of Sections 9  and 10 during the quarterly or annual period covered by the financial statements then being  furnished (including such schedules, computations and other information, including,  without limitation, information as to Unconsolidated Affiliates of the Company, in  reasonable detail as may be required to demonstrate compliance with the covenants set  forth herein), and the calculation of the amount, ratio or percentage then in existence.  In  the event that the Company or any Subsidiary has made an election to measure any  financial liability using fair value (which election is being disregarded for purposes of  determining compliance with this Agreement pursuant to Section 22.2) as to the period  covered by any such financial statement, such Senior Financial Officer’s certificate as to  such period shall include a reconciliation from Generally Accepted Accounting Principles  with respect to such election;  (b) Event of Default – certifying that such Senior Financial Officer has  reviewed the relevant terms hereof and has made, or caused to be made, under his or her  supervision, a review of the transactions and conditions of the Company and its  Subsidiaries from the beginning of the quarterly or annual period covered by the statements  then being furnished to the date of the certificate and that such review shall not have  disclosed the existence during such period of any condition or event that constitutes a  Default or an Event of Default or, if any such condition or event existed or exists (including,  without limitation, any such event or condition resulting from the failure of the Company  or any Subsidiary to comply with any Environmental Law), specifying the nature and  period of existence thereof and what action the Company shall have taken or proposes to  take with respect thereto;  (c) Capital Plan – setting forth a current capital plan for the next four calendar  quarters, including projected sources and uses of funds (including dividend and debt  payments);  (d) Property List – in the case of the financial statements delivered pursuant to  Section 7.1(a), containing a detailed listing of the Company and its Subsidiaries’ Property  and the Net Book Basis thereof and identifying each Property in the Pool;  (e) FFO – containing a statement of Funds From Operations; and  

 

  -18-  (f) Subsidiary Guarantors – setting forth a list of all Subsidiaries that are  Subsidiary Guarantors and certifying that each Subsidiary that is required to be a  Subsidiary Guarantor pursuant to Section 9.7 is a Subsidiary Guarantor, in each case, as of  the date of such certificate of a Senior Financial Officer.  Section 7.3. Visitation; Professional Services.  The Company shall permit the  representatives of each Purchaser and each holder of a Note that is an Institutional Investor:  (a) No Default – if no Default or Event of Default then exists, at the expense of  such holder and upon reasonable prior notice to the Company, to visit the principal  executive office of the Company, to discuss the affairs, finances and accounts of the  Company and its Subsidiaries with the Company’s officers, and its independent public  accountants, and (with the consent of the Company, which consent will not be  unreasonably withheld) to visit the other offices and Properties of the Company and each  Subsidiary, all at such reasonable times and as often as may be reasonably requested in  writing;  (b) Default – if a Default or Event of Default then exists, at the expense of the  Company to visit and inspect any of the offices or Properties of the Company or any  Subsidiary, to examine all their respective books of account, records, reports and other  papers, to make copies and extracts therefrom, and to discuss their respective affairs,  finances and accounts with their respective officers and independent public accountants  (and by this provision the Company authorizes said accountants to discuss the affairs,  finances and accounts of the Company and its Subsidiaries), all at such times and as often  as may be requested; and  (c) Professional Services –promptly upon the request of any holder that is an  Institutional Investor, the Company, at the Company’s sole cost and expense, shall:  (i)  allow an inspection and/or appraisal of the Obligors’ Property to be made by a Person  approved by the requesting holder in its sole discretion; and (ii) whenever a holder that is  an Institutional Investor has reasonable cause to believe that a Default or Event of Default  may exist, cause to be conducted or prepared any other written report, summary, opinion,  inspection, review, survey, audit or other professional service relating to the Property of  the Company and its Subsidiaries or any operations in connection with it (all as designated  in the holder’s request), including, without limitation, any accounting, architectural,  consulting, engineering, design, legal, management, pest control, surveying, title  abstracting or other technical, managerial or professional service relating to such Property  or its operations.  Section 7.4. Electronic Delivery.  Financial statements, opinions of independent  certified public accountants, other information and Officer’s Certificates that are required to be  delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed  to have been delivered if the Company satisfies any of the following requirements with respect  thereto:  

 

  -19-  (i) such financial statements satisfying the requirements of Section  7.1(a) or (b) and related Officer’s Certificate satisfying the requirements of Section  7.2 are delivered to each Purchaser and each holder of a Note by e-mail;  (ii) the Company shall have timely filed such Form 10-Q or Form 10- K, satisfying the requirements of Section 7.1(a) or Section 7.1(b), as the case may  be, with the SEC and shall have made such form available on “EDGAR” (or any  successor thereto established by the SEC) or on its home page on the internet, which  is located at www.eastgroup.net as of the Execution Date, and shall have delivered  the related Officer’s Certificate satisfying the requirements of Section 7.2  to each  Purchaser and each holder of a Note by e-mail or by posting on IntraLinks or on  any other similar website to which each Purchaser and each holder of Notes has  free access;  (iii) such financial statements satisfying the requirements of Section  7.1(a) or Section 7.1(b) and related Officer’s Certificate satisfying the requirements  of Section 7.2 are timely posted by or on behalf of the Company on IntraLinks or  on any other similar website to which each Purchaser and each holder of Notes has  free access;  (iv) the Company shall have filed any of the items referred to in Section  7.1(c)(ii) with the SEC and shall have made such items available on “EDGAR” (or  any successor thereto established by the SEC) or on its home page on the internet  or on IntraLinks or on any other similar website to which each Purchaser and each  holder of Notes has free access, or shall have delivered such items to each Purchaser  and each holder of a Note by e-mail; or  (v) the Company shall have made the items referred to in Section  7.1(c)(i) available on its home page on the internet or on IntraLinks or on any other  similar website to which each Purchaser and each holder of Notes has free access,  or shall have delivered such items to each Purchaser and each holder of a Note by  e-mail;  provided, however, that in no case shall access to such financial statements, other information and  Officer’s Certificates be conditioned upon any waiver or other agreement or consent (other than  confidentiality provisions consistent with Section 20 of this Agreement); provided further; in the  case of any of clause (ii), (iii), (iv) or (v), the Company shall have given each Purchaser and each  holder of a Note written notice within five Business Days, which may be by e-mail or in accordance  with Section 18, of such posting or filing in connection with each delivery.  SECTION 8. PAYMENT AND PREPAYMENT OF THE NOTES.  Section 8.1. Maturity.  As provided therein, the entire unpaid principal balance of each  Note shall be due and payable on the Maturity Date thereof.  Section 8.2. Optional Prepayments with Make-Whole Amount.  The Company may,  at its option, upon notice as provided below, prepay at any time all, or from time to time any part  of, the Notes, in an amount not less than 5% of the aggregate principal amount of the Notes then  

 

  -20-  outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and  the Make-Whole Amount determined for the prepayment date with respect to such principal  amount.  The Company will give each holder of Notes written notice of each optional prepayment  under this Section 8.2 not less than 10 days and not more than 60 days prior to the date fixed for  such prepayment unless the Company and the Required Holders agree to another time period  pursuant to Section 17.  Each such notice shall specify such date (which shall be a Business Day),  the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of  each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the  interest to be paid on the prepayment date with respect to such principal amount being prepaid,  and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make- Whole Amount due in connection with such prepayment (calculated as if the date of such notice  were the date of the prepayment), setting forth the details of such computation.  Two Business  Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of  a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the  specified prepayment date.  Section 8.3. Allocation of Partial Prepayments.  In the case of each partial prepayment  of the Notes pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be  allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to  the respective unpaid principal amounts thereof not theretofore called for prepayment.  Section 8.4. Maturity; Surrender, Etc.  In the case of each optional prepayment of  Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and  become due and payable on the date fixed for such prepayment, together with interest on such  principal amount accrued to such date and the applicable Make-Whole Amount, if any.  From and  after such date, unless the Company shall fail to pay such principal amount when so due and  payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such  principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to  the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any  prepaid principal amount of any Note.  Section 8.5. Purchase of Notes.  The Company will not, and will not permit any  Affiliate to, purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the  outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the  terms of this Agreement and the Notes or (b) pursuant to an offer to purchase made by the  Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same  terms and conditions.  Any such offer shall provide each holder of Notes with sufficient  information to enable it to make an informed decision with respect to such offer, and shall remain  open for acceptance for at least 20 Business Days.  If the holders of more than 25% of the unpaid  principal amount of the Notes then outstanding accept such offer, the Company shall promptly  notify the remaining holders of such fact and the expiration date for the acceptance by holders of  Notes of such offer shall be extended by the number of days necessary to give each such remaining  holder at least five Business Days from its receipt of such notice to accept such offer.  The  Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment,  prepayment or purchase of Notes pursuant to this Agreement and no Notes may be issued in  substitution or exchange for any such Notes.  

 

  -21-  Section 8.6. Make-Whole Amount.    “Make-Whole Amount” means, with respect to any Note, an amount equal to the excess,  if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called  Principal of such Note over the amount of such Called Principal, provided that the Make-Whole  Amount may in no event be less than zero.  For the purposes of determining the Make-Whole  Amount, the following terms have the following meanings:  “Called Principal” means, with respect to any Note, the principal of such Note that is to  be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable  pursuant to Section 12.1, as the context requires.  “Discounted Value” means, with respect to the Called Principal of any Note, the amount  obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal  from their respective scheduled due dates to the Settlement Date with respect to such Called  Principal, in accordance with accepted financial practice and at a discount factor (applied on the  same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment  Yield with respect to such Called Principal.  “Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50%  over the yield to maturity implied by the “Ask Yield(s)” reported as of 10:00 a.m. (New York City  time) on the second Business Day preceding the Settlement Date with respect to such Called  Principal, on the display designated as “Page PX1” (or such other display as may replace Page  PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S.  Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such  Called Principal as of such Settlement Date.  If there are no such U.S. Treasury securities Reported  having a maturity equal to such Remaining Average Life, then such implied yield to maturity will  be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in  accordance with accepted financial practice and (b) interpolating linearly between the “Ask  Yield(s)” Reported for the applicable most recently issued actively traded on-the-run U.S.  Treasury securities with the maturities (i) closest to and greater than such Remaining Average Life  and (ii) closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be  rounded to the number of decimal places as appears in the interest rate of the applicable Note.  If such yields are not Reported or the yields Reported as of such time are not ascertainable  (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called  Principal of any Note, 0.50% over the yield to maturity implied by the U.S. Treasury constant  maturity yields reported, for the latest day for which such yields have been so reported as of the  second Business Day preceding the Settlement Date with respect to such Called Principal, in  Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S.  Treasury constant maturity having a term equal to the Remaining Average Life of such Called  Principal as of such Settlement Date.  If there is no such U.S. Treasury constant maturity having a  term equal to such Remaining Average Life, such implied yield to maturity will be determined by  interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term  closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant  maturity so reported with the term closest to and less than such Remaining Average Life.  The  

 

  -22-  Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest  rate of the applicable Note.  “Remaining Average Life” means, with respect to any Called Principal, the number of  years obtained by dividing (a) such Called Principal into (b) the sum of the products obtained by  multiplying (i) the principal component of each Remaining Scheduled Payment with respect to  such Called Principal by (ii) the number of years, computed on the basis of a 360-day year  comprised of twelve 30-day months and calculated to two decimal places, that will elapse between  the Settlement Date with respect to such Called Principal and the scheduled due date of such  Remaining Scheduled Payment.  “Remaining Scheduled Payments” means, with respect to the Called Principal of any  Note, all payments of such Called Principal and interest thereon that would be due after the  Settlement Date with respect to such Called Principal if no payment of such Called Principal were  made prior to its scheduled due date, provided that if such Settlement Date is not a date on which  interest payments are due to be made under the Notes, then the amount of the next succeeding  scheduled interest payment will be reduced by the amount of interest accrued to such Settlement  Date and required to be paid on such Settlement Date pursuant to Section 8.4 or Section 12.1.  “Settlement Date” means, with respect to the Called Principal of any Note, the date on  which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared  to be immediately due and payable pursuant to Section 12.1, as the context requires.  Section 8.7. Prepayment upon a Change of Control.    (a) Promptly and in any event within five Business Days after the occurrence  of a Change of Control, the Company will give written notice thereof (a “Change of  Control Notice”) to the holders of all outstanding Notes, which Change of Control Notice  shall (i) refer specifically to this Section 8.7, (ii) describe the Change of Control in  reasonable detail and specify the Change of Control Prepayment Date and the Response  Date (as respectively defined below) in respect thereof, and (iii) offer to prepay all Notes  at the price specified below on the date therein specified (the “Change of Control  Prepayment Date”), which shall be a Business Day following the Response Date referred  to below and in any event not more than 45 days after the date of such Change of Control  Notice.  Each holder of a Note will notify the Company of such holder’s acceptance or  rejection of such offer by giving written notice of such acceptance or rejection to the  Company on or before the date for such notice specified in such Change of Control Notice  (the “Response Date”), which specified date shall be not less than 20 days nor more than  30 days after the date of such Change of Control Notice.  The Company shall prepay on  the Change of Control Prepayment Date all of the Notes held by the holders as to which  such offer has been so accepted (it being understood that failure of any holder to accept  such offer on or before the Response Date shall be deemed to constitute rejection by such  holder), at 100% of the principal amount of each such Note together with interest accrued  thereon to the Change of Control Prepayment Date, without premium.  If any holder shall  reject (or be deemed to have rejected) such offer with respect to any Note held by such  holder on or before the Response Date, such holder shall be deemed to have waived its  rights under this Section 8.7 to require prepayment of such Note for which such offer was  

 

  -23-  rejected (or deemed rejected) in respect of such Change of Control but not in respect of  any subsequent Change of Control.  (b) For purposes of this Section 8.7, any holder of more than one Note may act  separately with respect to each Note so held (with the effect that a holder of more than one  Note may accept such offer with respect to one or more Notes so held and reject such offer  with respect to one or more other Notes so held)  (c) “Change of Control” means a change resulting when (a) any Person or  Persons acting together which would constitute a Group together with any Affiliates  thereof shall at any time either (i) Beneficially Own more than 50% of the aggregate voting  power of all classes of Voting Stock of the Parent or (ii) succeed in having sufficient of its  or their nominees elected to the Board of Directors of the Parent, such that such nominees,  when added to any existing directors remaining on the Board of Directors of the Parent  after such election who is an Affiliate of such Person or Group, shall constitute a majority  of the Board of Directors of the Parent or (b) the Parent ceases to own, directly or indirectly,  at least 51% of the evidence of ownership of the Operating Partnership.  As used herein (1)  “Beneficially Own” means “beneficially own” as defined in Rule 13d-3 of the Securities  Exchange Act of 1934, as amended, or any successor provision thereto; provided, however,  that, for purposes of this definition, a Person shall not be deemed to Beneficially Own  securities tendered pursuant to a tender or exchange offer made by or on behalf of such  Person or any of such Person’s Affiliates until such tendered securities are accepted for  purchase or exchange; (2) “Group” means a “group” for purposes of Section 13(d) of the  Securities Exchange Act of 1934, as amended; and (3) “Voting Stock” of any Person shall  mean capital stock of such Person which ordinarily has voting power for the election of  directors (or persons performing similar functions) of such Person, whether at all times or  only so long as no senior class of securities has such voting power by reason of any  contingency.  Section 8.8. Payments Due on Non-Business Days.  Anything in this Agreement or the  Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.2 and  Section 8.7 that the notice of any optional prepayment or prepayment upon a Change of Control,  respectively, specify a Business Day as the date fixed for such prepayment), (a) subject to clause  (b), any payment of interest on any Note that is due on a date that is not a Business Day shall be  made on the next succeeding Business Day without including the additional days elapsed in the  computation of the interest payable on such next succeeding Business Day; and (b) any payment  of principal of or Make-Whole Amount on any Note (including principal due on the Maturity Date  of such Note) that is due on a date that is not a Business Day shall be made on the next succeeding  Business Day and shall include the additional days elapsed in the computation of interest payable  on such next succeeding Business Day.  SECTION 9. AFFIRMATIVE COVENANTS.  The Operating Partnership and the Parent, jointly and severally, covenant that from the  Execution Date until the Closing and thereafter, so long as any of the Notes are outstanding:  

 

  -24-  Section 9.1. Compliance with Laws.  Without limiting Section 10.4, the Company will,  and will cause each of its Subsidiaries to, comply with all Legal Requirements to which each of  them is subject, as applicable, including, without limitation, ERISA, Environmental Laws, the  USA PATRIOT Act and the other laws and regulations that are referred to in Section 5.16, and  will obtain and maintain in effect all licenses, certificates, permits, franchises and other  governmental authorizations necessary to the ownership of their respective Properties or to the  conduct of their respective businesses, in each case to the extent necessary to ensure that non- compliance with such laws, ordinances or governmental rules or regulations or failures to obtain  or maintain in effect such licenses, certificates, permits, franchises and other governmental  authorizations could not, individually or in the aggregate, reasonably be expected to have a  Material Adverse Effect.  The Parent will comply with all Legal Requirements to maintain, and  will at all times qualify as and maintain, its status as a real estate investment trust under Section  856(c)(1) of the Code or any successor provision.  Section 9.2. Insurance.  The Company will, and will cause each of its Subsidiaries to,  maintain, with financially sound and reputable insurers, insurance with respect to their respective  Properties and businesses against such casualties and contingencies, of such types, on such terms  and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves  are maintained with respect thereto) as is customary in the case of entities of established  reputations engaged in the same or a similar business and similarly situated.  Section 9.3. Maintenance of Properties.  The Company will, and will cause each of its  Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective Properties  in good repair, working order and condition (other than ordinary wear and tear), so that the business  carried on in connection therewith may be properly conducted at all times, provided that this  Section 9.3 shall not prevent the Company or any Subsidiary from discontinuing the operation and  the maintenance of any of its Properties if such discontinuance is desirable in the conduct of its  business and the Company has concluded that such discontinuance could not, individually or in  the aggregate, reasonably be expected to have a Material Adverse Effect.  Section 9.4. Payment of Taxes and Claims.  The Company will, and will cause each of  its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and  discharge all taxes shown to be due and payable on such returns and all other taxes, assessments,  governmental charges, or levies imposed on them or any of their Properties, assets, income or  franchises, to the extent the same have become due and payable and before they have become  delinquent and all claims for which sums have become due and payable that have or might become  a Lien on Properties or assets of the Company or any Subsidiary, provided that neither the  Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if the  amount, applicability or validity thereof is contested by the Company or such Subsidiary on a  timely basis in good faith and in appropriate proceedings, and the Company or any Subsidiary has  established adequate reserves therefor in accordance with Generally Accepted Accounting  Principles on the books of the Company or such Subsidiary.  Section 9.5. Corporate Existence, Etc.  Subject to Section 10.2, the Company will at  all times preserve and keep its corporate existence in full force and effect.  The Company will at  all times preserve and keep in full force and effect the corporate existence of each Subsidiary  (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of  

 

  -25-  the Company and its Subsidiaries unless, in the good faith judgment of the Company, the  termination of or failure to preserve and keep in full force and effect such corporate existence,  right or franchise could not, individually or in the aggregate, have a Material Adverse Effect.  Section 9.6. Books and Records.  The Company will, and will cause each of its  Subsidiaries to, maintain proper books of record and account in conformity with Generally  Accepted Accounting Principles and all applicable Legal Requirements of any Governmental  Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case  may be.  The Company will, and will cause each of its Subsidiaries to, keep books, records and  accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets.   The Company and its Subsidiaries have devised a system of internal accounting controls sufficient  to provide reasonable assurances that their respective books, records, and accounts accurately  reflect all transactions and dispositions of assets and the Company will, and will cause each of its  Subsidiaries to, continue to maintain such system.  Section 9.7. Guarantors.    (a) The Company will cause each Subsidiary of the Parent (other than the  Operating Partnership) that guarantees or otherwise becomes liable at any time, whether as  a borrower or an additional or co-borrower or otherwise, for or in respect of any  Indebtedness under any Material Credit Facility to concurrently therewith deliver the  following to each holder of a Note:  (i) a Guaranty;  (ii) a certificate signed by an authorized responsible officer of such  Guarantor containing representations and warranties on behalf of such Guarantor  to the same effect, mutatis mutandis, as those contained in Sections 5.1, 5.2, 5.6,  and 5.7 of this Agreement (with respect to such Guarantor and such Guaranty);  (iii) all documents as may be reasonably requested by the Required  Holders to evidence the due organization, continuing existence and good standing  of such Guarantor and the due authorization by all requisite action on the part of  such Guarantor of the execution and delivery of such Guaranty and the performance  by such Guarantor of its obligations thereunder; and  (iv) an opinion of counsel reasonably satisfactory to the Required  Holders covering such matters relating to such Guarantor and such Guaranty as the  Required Holders may reasonably request.  (b) The Company may request in writing that the holders of the Notes release,  and upon receipt of such request the holders shall release, a Guarantor from its Guaranty  so long as:  (i) such Guarantor is not otherwise required to be a party to such Guaranty  under the immediately preceding subsection (a) or Section 9.8(b); (ii) no Default or Event  of Default shall then be in existence or would occur as a result of such release; (iii) the  representations and warranties made or deemed made by the Company and each other  Obligor in the Transaction Documents to which any of them is a party, as applicable, shall  be true and correct on and as of the date of such release with the same force and effect as  

 

  -26-  if made on and as of such date 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 not prohibited under the Transaction Documents; and (iv) each  holder of a Note shall have received such written request at least 10 days (or such shorter  period as may be acceptable to the Required Holders) prior to the requested date of release.   Delivery by the Company to the holders of the Notes of any such request shall constitute a  representation by the Company that the matters set forth in the preceding sentence (both as  of the date of the giving of such request and as of the date of the effectiveness of such  request) are true and correct with respect to such request.  The holders agree to furnish to  the Company, upon the Company’s written request and at the Company’s sole cost and  expense, any release, termination, or other agreement or document evidencing the  foregoing release as may be reasonably requested by the Company.  (c) Notwithstanding the foregoing, if any lender or agent is paid any  remuneration as consideration for the release of such Guarantor as a borrower, co-borrower  or guarantor under a Material Credit Facility, then such remuneration shall be concurrently  paid, on the same equivalent terms, ratably to each holder of the Notes then outstanding.   Section 9.8. Property Pool.    (a) The Company will and, subject to Section 9.8(b), the Company’s  Subsidiaries will, at all times own (in fee simple title or through an Eligible Ground Lease)  a pool (the “Pool”) of assets that are not mortgaged, pledged, hypothecated, or encumbered  in any manner, other than Permitted Encumbrances, with an aggregate Value such that the  total amount of the Company’s Indebtedness other than Secured Debt outstanding from  time to time, shall never be greater than 60% of such Value.  The Pool shall have the  following characteristics: (i) assets in the Pool shall be completed income producing  Industrial Buildings (including properties containing multiple buildings in one industrial  park), with parking sufficient to meet all Legal Requirements and consistent with market  conditions that will accommodate full occupancy of the building, provided, however, that  Los Angeles Corporate Center Office Building in Los Angeles, California, will not be  excluded from the Pool because it is not an Industrial Building, (ii) the Company must have  received from third party independent consultants, written assessments (including, without  limitation, Phase I environmental reports) for each Property in, or to be added to, the Pool  that do not disclose any material environmental conditions, structural defects or title  defects, or other material risks related to such Property, and (iii) no Property in the Pool  shall be owned by the Parent, the Operating Partnership or a Subsidiary which has a  provision in its Organizational Documents which has or may have the effect of prohibiting  or limiting the Parent’s, the Operating Partnership’s or the Subsidiary’s ability to sell,  transfer or convey such Property.  If requested by a holder, the Company will provide to  such holder written assessments from third party independent environmental consultants  for all Pool Properties acquired after the Execution Date.  If the Required Holders  determine that there are material environmental conditions existing on or risks to such  Properties, the Properties will be excluded from the Pool.  

 

  -27-  (b) If any Property to be included in the Pool is owned by a Subsidiary of the  Company, it may be included in the Pool only if:  (i) the owner of the Property is either (A) a Wholly-Owned Subsidiary  of the Company or (B) if not a Wholly-Owned Subsidiary, then (1) the Value of the  Property owned by such Subsidiary (“Partial Subsidiary Real Estate”) to be used  in the calculation in clause (a) above shall be as provided in clause (a) multiplied  by the cumulative percentage interest of the Subsidiary owned by the Company,  and (2) the Company controls all major decisions regarding the Partial Subsidiary  Real Estate, including the right to sell or refinance the Partial Subsidiary Real  Estate; and  (ii) the owner of the Property (A) executes a Guaranty in Proper Form  and delivers it to each holder of a Note, and otherwise meets the requirements of  Section 9.7(a), and such Guaranty remains in full force and effect, and (B) would  not at any time be in default under Section 11(f), (g), or (k), if said subsections were  applicable to said owner.  (c) If the Company requests inclusion of assets in the Pool that do not meet the  requirements of this Section 9.8, then such assets may only be included in the Pool upon  the prior written approval of the Required Holders.  Section 9.9. Co-Borrowers.  (a) The Operating Partnership and the Parent shall be  bound jointly and severally with one another to keep, observe and perform the covenants,  agreements, obligations and liabilities imposed by this Agreement upon the “Company”, (b) a  release of one or more Persons comprising the “Company” shall not in any way be deemed a  release of any other Person comprising “Company”, and (c) a separate action hereunder may be  brought and prosecuted against one or more of the Persons comprising the “Company” without  limiting any liability or impairing the right of a Purchaser or any holder to proceed against any  other Person comprising “Company”.  Although it will not be a Default or an Event of Default if the Operating Partnership or the  Parent fails to comply with any provision of Section 9 on or after the Execution Date and prior to  the Closing, if such a failure occurs, then any of the Purchasers may elect not to purchase the Notes  on the date of Closing that is specified in Section 3.  SECTION 10. NEGATIVE COVENANTS.   The Operating Partnership and the Parent, jointly and severally, covenant that from the  Execution Date until the Closing and thereafter, so long as any of the Notes are outstanding:   Section 10.1. Transactions with Affiliates.  The Company will not, and will not permit  any other Obligor to, enter into, directly or indirectly, any transaction or group of related  transactions (including, without limitation, the purchase, lease, sale or exchange of Properties of  any kind or the rendering of any service) with any Affiliate (other than the Company or another  Obligor), except in the ordinary course and pursuant to the reasonable requirements of the  Company’s or such Obligor’s business and upon fair and reasonable terms no less favorable to the  

 

  -28-  Company or such Obligor than would be obtainable in a comparable arm’s-length transaction with  a Person not an Affiliate.   Section 10.2. Merger, Consolidation, Acquisitions, Sale of Assets, Etc.  Neither the  Parent nor the Operating Partnership will, nor will either permit any Guarantor to, in a single  transaction or series of related transactions, directly or indirectly:  (a) consolidate with or merge with any other Person or convey, transfer or lease  all or substantially all of its assets to any Person unless the successor formed by such  consolidation or the survivor of such merger or the Person that acquires by conveyance,  transfer or lease all or substantially all of the assets of the Parent, the Operating Partnership  or such Guarantor as an entirety, as the case may be, shall be a solvent corporation or  limited liability company organized and existing under the laws of the United States or any  state thereof (including the District of Columbia), and, if the Parent, the Operating  Partnership or such Guarantor, as the case may be, is not such corporation or limited  liability company, (i) such corporation or limited liability company shall have executed  and delivered to each holder of a Note its assumption of the due and punctual performance  and observance of each covenant and condition of this Agreement, the Notes and/or the  relevant Guaranty, as applicable, (ii) such corporation or limited liability company shall  have caused to be delivered to each holder of a Note an opinion of nationally recognized  independent counsel, or other independent counsel reasonably satisfactory to the Required  Holders, to the effect that all agreements or instruments effecting such assumption are  enforceable in accordance with their terms and comply with the terms hereof and (iii) each  Obligor, other than the Obligor that is the subject of the transaction or series of related  transactions, reaffirms its obligations under each of the Transaction Documents to which  it is a party in writing at such time pursuant to documentation that is reasonably acceptable  to the Required Holders; or  (b) acquire all or substantially all of the assets of any Person other than an  acquisition in which the Company acquires all or substantially all of the assets of another  Person and the value of the assets acquired is less than 15% of the value of the assets of  the Company on a consolidated basis (in accordance with Generally Accepted Accounting  Principles) after such acquisition; or  (c) sell, convey or lease all or any substantial part of its assets other than sales  or leases executed in the ordinary course of business; and  in each case, immediately before and immediately after giving effect to such transaction or each  transaction in any such series of transactions, no Default or Event of Default shall have occurred  and be continuing.  No such sale, conveyance, or lease of any substantial part of the assets of the Company shall have  the effect of releasing the Company from its liability under this Agreement or the Notes.  Section 10.3. Line of Business.  The Company will not, and will not permit any of its  Subsidiaries to, engage in any business if, as a result, the general nature of the business in which  the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially  

 

  -29-  changed from the general nature of the business in which the Company and its Subsidiaries, taken  as a whole, are engaged on the Execution Date and as described in the Presentation.   Section 10.4. Economic Sanctions, Etc.  The Company will not, and will not permit any  Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked  Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or  engage in any dealing or transaction (including any investment, dealing or transaction involving  the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would  cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under,  any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under  any U.S. Economic Sanctions Laws.   Section 10.5. Financial Tests.  The Company will ensure that at all times, on a  consolidated basis in accordance with Generally Accepted Accounting Principles:  (a) the Secured Debt to Total Asset Value Ratio is no greater than 40%;  (b) the Fixed Charge Coverage Ratio is not less than 1.40:1.00;  (c) the Unencumbered Interest Coverage Ratio is not less than 2.00:1.00; and  (d) the Total Liabilities to Total Asset Value Ratio is no greater than 60%.  Section 10.6. Liens.  The Company will not, and will not permit any of its Subsidiaries  to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a  contingency or otherwise) any Lien on or with respect to any Property (including, without  limitation, any document or instrument in respect of goods or accounts receivable) of the Company  or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits  therefrom, or assign or otherwise convey any right to receive income or profits, unless after giving  effect to such action, no Default or Event of Default shall have occurred and be continuing,  provided that notwithstanding the foregoing, the Company will not, and will not permit any of its  Subsidiaries to, secure any Indebtedness outstanding under or pursuant to any Material Credit  Facility unless and until the Notes (and any Guaranty) shall concurrently be secured equally and  ratably with such Indebtedness pursuant to documentation in Proper Form including, without  limitation, an intercreditor agreement and opinions of counsel to the Company and/or any such  Subsidiary, as the case may be, from counsel that is reasonably acceptable to the Required Holders.  Section 10.7. Indebtedness.  The Company will not, and will not permit any of its  Subsidiaries to, create, incur, suffer or permit to exist, or assume or guarantee, directly or  indirectly, contingently or otherwise, or become or remain liable with respect to any Indebtedness  in excess of the Indebtedness which may be incurred within the limitations contained in Section  9.8 and Section 10.5.  Section 10.8. Redemption.  Neither the Parent nor the Operating Partnership will at any  time buy back, redeem, retire or otherwise acquire, directly or indirectly, any shares of its capital  stock or other similar Equity Interests if such action would cause the Company not to be in  compliance with this Agreement, and so long as the aggregate market value of such stock or other  

 

  -30-  Equity Interests when acquired shall not exceed, during any calendar year, 15% of the Company’s  Net Worth.  Section 10.9. Loans and Investments.  The Company will not, and will not permit any  of its Subsidiaries to, make any loan, advance, extension of credit or capital contribution to, or  make or have any investment in, any Person, or make any commitment to make any such extension  of credit or investment, except:  (a) travel advances in the ordinary course of business to officers, employees  and agents;  (b) readily marketable securities issued or fully guaranteed by the United States  (or investments or money market accounts consisting of the same);  (c) commercial paper rated “Prime 1” by Moody’s or “A1” by S&P (or  investments or money market accounts consisting of the same);  (d) certificates of deposit or repurchase certificates issued by financial  institutions (i) organized and existing under the laws of the United States, or any state,  territory, province or possession thereof and (ii) the senior unsecured long-term debt of  which is rated at least “A2” by Moody’s or at least “A” by S&P (or investments or money  market accounts consisting of the same);  provided that all of the foregoing in clauses (b), (c) and (d) not having a maturity of more  than one year from the date of issuance thereof;  (e) investments in Subsidiaries through which the Company or a Subsidiary, as  applicable, invests in real estate assets permitted by this Agreement;   (f) investments in Unconsolidated Affiliates that are engaged primarily in the  business of investment in and operation of Industrial Buildings (valued at an amount equal  to the Value of each Unconsolidated Affiliate’s operating real estate assets multiplied by  the Equity Percentage for such Unconsolidated Affiliate);  (g) loans, advances, and extensions of credit to Persons (who are not Affiliates  of any Obligor) secured by valid and enforceable first and second priority Liens on real  estate;  (h) investments in undeveloped land;  (i) investments in readily marketable securities (valued at the lower of cost or  then market price) of another Person, not an Affiliate of any Obligor, traded on a national  trading exchange, that is a real estate investment trust under Section 856(c)(1) of the Code,  or that is a real estate operating company;  (j) investments in Industrial Buildings;  

 

  -31-  (k) investments in real estate assets that are being constructed or developed  (including such assets that such Person has contracted to purchase and has no option to  terminate without penalty) to be Industrial Buildings, but are not yet in operation; and  (l) miscellaneous investments in other assets not described above not to exceed  5% of Total Asset Value in the aggregate.  The Company will not, and will not permit any of its Subsidiaries to, mortgage, pledge,  hypothecate or encumber in any manner the loans, advances or extensions of credit made pursuant  to Section 10.9(g) or the securities held pursuant to Section 10.9(i).  In addition to the limitations  set forth above, in no event shall the aggregate value of all of the investments permitted under  Sections 10.9(f), (g), (h) (i), (k) (valued at the total actual and budgeted cost of construction or  development of such real estate assets (excluding any such assets on which construction has not  commenced), including such costs incurred and to be incurred by Unconsolidated Affiliates to the  extent of the greater of (i) the Equity Percentage of the Company or any Subsidiary of the Company  in the applicable Unconsolidated Affiliate times the total actual and budgeted cost of construction  or development of the real estate and (ii) the Recourse Amount with respect to such  Unconsolidated Affiliate related to the applicable real estate asset), and (l) exceed 30% of the Total  Asset Value, after giving effect to such investments.  The calculation of the limitation pursuant to  the preceding sentence will be made without duplication if a loan or investment shall be included  in more than one category described in this Section 10.9.  Section 10.10. No Negative Pledge.  The Company will not, and will not permit any of its  Subsidiaries to, create, assume, or allow any Negative Pledge in favor of any other Person affecting  or relating to, any asset in the Pool; provided, however, that nothing in this Section 10.10 shall be  deemed or construed to prohibit the Company and any of its Subsidiaries from delivering from  time to time a Negative Pledge substantially in the form contained in Section 10.6 of this  Agreement in connection with a Material Credit Facility.  For purposes of this provision,  “Negative Pledge” means, with respect to a given asset, any provision of a document, instrument  or agreement (other than this Agreement, the Notes or any Guaranty) which prohibits or purports  to prohibit the creation or assumption of any Lien on such asset as security for Indebtedness of the  Person owning such asset or any other Person; provided, however, that (i) an agreement that  permits an Obligor to encumber its assets so long as such Obligor maintains one or more specified  ratios that may limit such Obligor’s ability to encumber its assets but that does not generally  prohibit the encumbrance of its assets, or the encumbrance of specific assets, shall not constitute a  Negative Pledge and (ii) an agreement similar to Section 10.6 of this Agreement shall not constitute  a Negative Pledge.  Section 10.11. Restricted Payments.  The Parent will not make any Restricted Payment  during any calendar quarter which, when added to all Restricted Payments made during the same  calendar quarter and the three immediately preceding calendar quarters, exceeds 90% of the Funds  From Operations during the immediately preceding four calendar quarters; provided that the  foregoing shall not prohibit the Parent from (a) making the minimum amount of Restricted  Payments required to be made in order for the Parent to comply with the provisions of Section 9.1,  or (b) issuing stock in the Parent to a transferor (not an Affiliate of any Obligor) of Property to the  Company as a result of said transferor’s election to convert partnership interests in the Operating  Partnership to stock in the Parent pursuant to agreements with said transferor allowing said  

 

  -32-  conversion as a portion of the consideration for the transfer.  Notwithstanding the foregoing, after  the occurrence of an Event of Default, the Parent will not make any Restricted Payment except as  required by clause (a) above; provided that, if, as a result of the occurrence of any Event of Default  any of the Notes have been accelerated pursuant to Section 12.1, the Company will not, and will  not permit any Subsidiary to, make any Restricted Payments to any Person other than to the  Company or any Subsidiary.  For purposes of this provision, “Restricted Payment” means (i) any  dividend or other distribution on any shares of a Person’s capital stock (except dividends payable  solely in shares of its capital stock or in rights to subscribe for or purchase shares of its capital  stock) or (ii) any payment on account of the purchase, redemption, retirement or acquisition of (x)  any shares of a Person’s capital stock or (y) any option, warrant or other right to acquire shares of  a Person’s capital stock.  Although it will not be a Default or an Event of Default if the Operating Partnership or the  Parent fails to comply with any provision of Section 10 before or after giving effect to the issuance  of the Notes on a pro forma basis, if such a failure occurs, then any of the Purchasers may elect  not to purchase the Notes on the date of Closing that is specified in Section 3  SECTION 11. EVENTS OF DEFAULT.  An “Event of Default” shall exist if any of the following conditions or events shall occur  and be continuing:  (a) the Company defaults in the payment of any principal or Make-Whole  Amount, if any, on any Note when the same becomes due and payable, whether at maturity  or at a date fixed for prepayment or by declaration or otherwise; or  (b) the Company defaults in the payment of any interest on any Note for more  than five Business Days after the same becomes due and payable; or  (c) the Company or any Guarantor defaults in the performance of or compliance  with any term contained herein (other than those referred to in Sections 11(a) and (b)) or  in any Guaranty and such default is not remedied within 20 days after the earlier of (i) a  Responsible Officer obtaining actual knowledge of such default and (ii) the Company  receiving written notice of such default from any holder of a Note (any such written notice  to be identified as a “notice of default” and to refer specifically to this Section 11(c)); or  (d) (i) any representation or warranty made in writing by or on behalf of the  Company or by any officer of the Company in this Agreement or any writing furnished in  connection with the transactions contemplated hereby when taken as a whole proves to  have been false or incorrect in any material respect on the date as of which made, or (ii)  any representation or warranty made in writing by or on behalf of any Guarantor or by any  officer of such Guarantor in any Guaranty or any writing furnished in connection with such  Guaranty when taken as a whole proves to have been false or incorrect in any material  respect on the date as of which made; or  (e) (x) the Company or any Subsidiary is in default (as principal or as guarantor  or other surety) in the payment of any principal of or premium or make-whole amount or  interest on any Indebtedness that is outstanding in an aggregate principal amount of at least  

 

  -33-  $5,000,000 beyond any period of grace provided with respect thereto, or (y) the Company  or any Subsidiary is in default in the performance of or compliance with any term of any  evidence of any Indebtedness in an aggregate outstanding principal amount of at least  $5,000,000 or of any mortgage, indenture or other agreement relating thereto or any other  condition exists, and as a consequence of such default or condition such Indebtedness has  become, or has been declared (or, solely with respect to a Material Credit Facility, one or  more Persons are entitled to declare such Indebtedness to be), due and payable before its  stated maturity or before its regularly scheduled dates of payment, or (z) as a consequence  of the occurrence or continuation of any event or condition (other than as a result of a  Change of Control or the passage of time or the right of the holder of Indebtedness to  convert such Indebtedness into Equity Interests), (1) the Company or any Subsidiary has  become obligated to purchase or repay Indebtedness before its regular maturity or before  its regularly scheduled dates of payment in an aggregate outstanding principal amount of  at least $5,000,000, or (2) solely with respect to a Material Credit Facility, one or more  Persons have the right to require the Company or any Subsidiary so to purchase or repay  such Indebtedness; or  (f) the Company or any Material Subsidiary (i) is generally not paying, or  admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by  answer or otherwise to the filing against it of, a petition for relief or reorganization or  arrangement or any other petition in bankruptcy, for liquidation, dissolution or split-up, or  to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other  similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors,  (iv) consents to the appointment of a custodian, receiver, trustee or other officer with  similar powers with respect to it or with respect to any substantial part of its Property, (v)  is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose  of any of the foregoing; or  (g) a court or other Governmental Authority of competent jurisdiction enters an  order appointing, without consent by the Company or any Material Subsidiary, a custodian,  receiver, trustee or other officer with similar powers with respect to it or with respect to  any substantial part of its Property, or constituting an order for relief or approving a petition  for relief or reorganization or any other petition in bankruptcy or for liquidation or to take  advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the  dissolution, winding-up or liquidation of the Company or any Material Subsidiary, or any  such petition shall be filed against the Company or any Material Subsidiary and such  petition shall not be dismissed within 90 days; or  (h) one or more final judgments or orders for the payment of money  aggregating in excess of $5,000,000, including, without limitation, any such final order  enforcing a binding arbitration decision, are rendered against one or more of the Company  and the Material Subsidiaries and which judgments are not discharged for 30 days during  which execution shall not be effectively stayed; or  (i) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA  or the Code for any plan year or part thereof or a waiver of such standards or extension of  any amortization period is sought or granted under section 412 of the Code, (ii) a notice of  

 

  -34-  intent to terminate any Plan shall have been or is reasonably expected to be filed with the  PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to  terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the  Company or any ERISA Affiliate that a Plan may become a subject of any such  proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the  meaning of section 4001(a)(18) of ERISA) under all Plans, determined in accordance with  Title IV of ERISA, shall exceed an amount that could reasonably be expected to have a  Material Adverse Effect, (iv) the Company or any ERISA Affiliate shall have incurred or  is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the  penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the  Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the  Company or any Subsidiary establishes or amends any employee welfare benefit plan that  provides post-employment welfare benefits in a manner that would increase the liability of  the Company or any Subsidiary thereunder; and any such event or events described in  clauses (i) through (vi) above, either individually or together with any other such event or  events, could reasonably be expected to have a Material Adverse Effect.  As used in this  Section 11(i), the terms “employee benefit plan” and “employee welfare benefit plan” shall  have the respective meanings assigned to such terms in section 3 of ERISA; or  (j) except as otherwise permitted under this Agreement, any Guaranty shall  cease to be in full force and effect, any Guarantor or any Person acting on behalf of any  Guarantor shall contest in any manner the validity, binding nature or enforceability of any  Guaranty, or the obligations of any Guarantor under any Guaranty are not or cease to be  legal, valid, binding and enforceable in accordance with the terms of such Guaranty; or   (k) any Obligor shall have concealed, removed, or permitted to be concealed or  removed, any part of its Property, with intent to hinder, delay or defraud its creditors or  any of them, or made or suffered a transfer of any of its Property which may be fraudulent  under any bankruptcy, fraudulent conveyance or similar law; or shall have made any  transfer of its Property to or for the benefit of a creditor at a time when other creditors  similarly situated have not been paid.  SECTION 12. REMEDIES ON DEFAULT, ETC.   Section 12.1. Acceleration.    (a) If an Event of Default with respect to the Company described in Section  11(f) or (g) (other than an Event of Default described in clause (i) of Section 11(f) or  described in clause (vi) of Section 11(f) by virtue of the fact that such clause encompasses  clause (i) of Section 11(f)) has occurred, all the Notes then outstanding shall automatically  become immediately due and payable.  (b) If any other Event of Default has occurred and is continuing, any holder or  holders of a majority in principal amount of the Notes at the time outstanding may at any  time at its or their option, by notice or notices to the Company, declare all the Notes then  outstanding to be immediately due and payable.  

 

  -35-  (c) If any Event of Default described in Section 11(a) or (b) has occurred and  is continuing, any holder or holders of Notes at the time outstanding affected by such Event  of Default may at any time, at its or their option, by notice or notices to the Company,  declare all the Notes held by it or them to be immediately due and payable.  Upon any Notes becoming due and payable under this Section 12.1, whether automatically  or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such  Notes, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest  accrued thereon at the applicable Default Rate) and (ii) the Make-Whole Amount determined in  respect of such principal amount (to the full extent permitted by applicable law), shall all be  immediately due and payable, in each and every case without presentment, demand, protest or  further notice, all of which are hereby waived.  The Company acknowledges, and the parties hereto  agree, that each holder of a Note has the right to maintain its investment in the Notes free from  repayment by the Company (except as herein specifically provided for) and that the provision for  payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are  accelerated as a result of an Event of Default, is intended to provide compensation for the  deprivation of such right under such circumstances.  Section 12.2. Other Remedies.  If any Default or Event of Default has occurred and is  continuing, and irrespective of whether any Notes have become or have been declared immediately  due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed  to protect and enforce the rights of such holder by an action at law, suit in equity or other  appropriate proceeding, whether for the specific performance of any agreement contained herein  or in any Note or Guaranty, or for an injunction against a violation of any of the terms hereof or  thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.  Section 12.3. Rescission.  At any time after any Notes have been declared due and  payable pursuant to Section 12.1(b) or (c), the Required Holders, by written notice to the Company,  may rescind and annul any such declaration and its consequences if (a) the Company has paid all  overdue interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that  are due and payable and are unpaid other than by reason of such declaration, and all interest on  such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable  law) any overdue interest in respect of the Notes, at the applicable Default Rate, (b) neither the  Company nor any other Person shall have paid any amounts which have become due solely by  reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of  amounts that have become due solely by reason of such declaration, have been cured or have been  waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of  any monies due pursuant hereto or to the Notes.  No rescission and annulment under this Section  12.3 will extend to or affect any subsequent Event of Default or Default or impair any right  consequent thereon.  Section 12.4. No Waivers or Election of Remedies, Expenses, Etc.  No course of  dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy  shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies.   No right, power or remedy conferred by this Agreement, any Guaranty or any Note upon any  holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein  or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the  

 

  -36-  obligations of the Company under Section 15, the Company will pay to the holder of each Note  on demand such further amount as shall be sufficient to cover all costs and expenses of such holder  incurred in any enforcement or collection under this Section 12, including, without limitation,  reasonable attorneys’ fees, expenses and disbursements.  SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.  Section 13.1. Registration of Notes.  The Company shall keep at its principal executive  office a register for the registration and registration of transfers of Notes.  The name and address  of each holder of one or more Notes, each transfer thereof and the name and address of each  transferee of one or more Notes shall be registered in such register.  If any holder of one or more  Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes  shall also be registered in such register as an owner and holder thereof and (b) at any such  beneficial owner’s option, either such beneficial owner or its nominee may execute any  amendment, waiver or consent pursuant to this Agreement.  Prior to due presentment for  registration of transfer, the Person(s) in whose name any Note(s) shall be registered shall be  deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall  not be affected by any notice or knowledge to the contrary.  The Company shall give to any holder  of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct  copy of the names and addresses of all registered holders of Notes.  Section 13.2. Transfer and Exchange of Notes.  Upon surrender of any Note to the  Company at the address and to the attention of the designated officer (all as specified in Section  18(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of  transfer accompanied by a written instrument of transfer duly executed by the registered holder of  such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant  name, address and other information for notices of each transferee of such Note or part thereof),  within 10 Business Days thereafter, the Company shall execute and deliver, at the Company’s  expense (except as provided below), one or more new Notes of the same series (as requested by  the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid  principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as  such holder may request and shall be substantially in the form of Schedule 1.1(a) or 1.1(b), as  applicable.  Each such new Note shall be dated and bear interest from the date to which interest  shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest  shall have been paid thereon.  The Company may require payment of a sum sufficient to cover any  stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall  not be transferred in denominations of less than the lower of (a) $5,000,000 or (b) the unpaid  principal amount of the Note to be transferred.  Any transferee, by its acceptance of a Note  registered in its name (or the name of its nominee), shall be deemed to have made the  representation set forth in Section 6.2.  Section 13.3. Replacement of Notes.  Upon receipt by the Company at the address and  to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably  satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note  (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional  Investor of such ownership and such loss, theft, destruction or mutilation), and  

 

  -37-  (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory  to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser  or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified  Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed  to be satisfactory), or  (b) in the case of mutilation, upon surrender and cancellation thereof, within 10  Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu  thereof, a new Note of the same series, dated and bearing interest from the date to which  interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the  date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid  thereon.  SECTION 14. PAYMENTS ON NOTES.  Section 14.1. Place of Payment.  Subject to Section 14.2, payments of principal, Make- Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New  York City at the principal office of JPMorgan Chase Bank in such jurisdiction.  The Company  may at any time, by notice to each holder of a Note, change the place of payment of the Notes so  long as such place of payment shall be either the principal office of the Company in such  jurisdiction or the principal office of a bank or trust company in such jurisdiction.  Section 14.2. Home Office Payment.  So long as any Purchaser or its nominee shall be  the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to  the contrary, the Company will pay all sums becoming due on such Note for principal, Make- Whole Amount, if any, interest and all other amounts becoming due hereunder by the method and  at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such  other method or at such other address as such Purchaser shall have from time to time specified to  the Company in writing for such purpose, without the presentation or surrender of such Note or  the making of any notation thereon, except that upon written request of the Company made  concurrently with or reasonably promptly after payment or prepayment in full of any Note, such  Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request,  to the Company at its principal executive office or at the place of payment most recently designated  by the Company pursuant to Section 14.1.  Prior to any sale or other disposition of any Note held  by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the  amount of principal paid thereon and the last date to which interest has been paid thereon or  surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section  13.2.  The Company will afford the benefits of this Section 14.2 to any Institutional Investor that  is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and  that has made the same agreement relating to such Note as the Purchasers have made in this  Section 14.2.  SECTION 15. EXPENSES, ETC.  Section 15.1. Transaction Expenses.  Whether or not the transactions contemplated  hereby are consummated, the Company will pay all costs and expenses (including reasonable  attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or  

 

  -38-  other counsel) incurred by the Purchasers and each other holder of a Note in connection with such  transactions and in connection with any amendments, waivers or consents under or in respect of  this Agreement, any Guaranty, the Notes or any other Transaction Document (whether or not such  amendment, waiver or consent becomes effective) within 15 Business Days after the Company’s  receipt of any invoice therefor, including, without limitation:  (a) the costs and expenses incurred  in enforcing or defending (or determining whether or how to enforce or defend) any rights under  this Agreement, any Guaranty, the Notes or any other Transaction Document or in responding to  any subpoena or other legal process or informal investigative demand issued in connection with  this Agreement, any Guaranty, the Notes or any other Transaction Document, or by reason of being  a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in  connection with the insolvency or bankruptcy of the Company or any other Obligor or in  connection with any work-out or restructuring of the transactions contemplated hereby and by the  Notes and any Guaranty and (c) the costs and expenses incurred in connection with the initial filing  of this Agreement and all related documents and financial information with the SVO, provided  that such costs and expenses under this clause (c) shall not exceed $2,500 per series.  In the event  that any such invoice is not paid within 15 Business Days after the Company’s receipt thereof,  interest on the amount of such invoice shall be due and payable at the applicable Default Rate  commencing with the 16th Business Day after the Company’s receipt thereof until such invoice  has been paid.  The Company will pay, and will save each Purchaser and each other holder of a  Note harmless from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and  finders (other than those, if any, retained by a Purchaser or other holder in connection with its  purchase of the Notes), (ii) any and all wire transfer fees that the Company’s bank deducts from  any payment under such Note to such holder or otherwise charges to a holder of a Note with respect  to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty,  cost, fee, expense (including reasonable attorneys’ fees and expenses) or obligation resulting from  the consummation of the transactions contemplated hereby, including the use of the proceeds of  the Notes by the Company.  If required by the NAIC, the Company shall obtain and maintain at  its own cost and expense a Legal Entity Identifier (LEI), provided, that such costs and expenses  shall not exceed $500 for the initial filing and $250 per annum for any subsequent filings.  Section 15.2. Certain Taxes.  The Company agrees to pay all stamp, documentary or  similar taxes or fees which may be payable in respect of the execution and delivery or the  enforcement of this Agreement or any Guaranty or the execution and delivery (but not the transfer)  or the enforcement of any of the Notes in the United States or any other jurisdiction where the  Company or any Guarantor has assets or of any amendment of, or waiver or consent under or with  respect to, this Agreement or any Guaranty or of any of the Notes, and to pay any value added tax  due and payable in respect of reimbursement of costs and expenses by the Company pursuant to  this Section 15, and will save each holder of a Note to the extent permitted by applicable law  harmless against any loss or liability resulting from nonpayment or delay in payment of any such  tax or fee required to be paid by the Company hereunder.  Section 15.3. Survival.  The obligations of the Company under this Section 15 will  survive the payment or transfer of any Note, the enforcement, amendment or waiver of any  provision of this Agreement, any Guaranty, the Notes, or any other Transaction Document and the  termination of this Agreement.  

 

  -39-  SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE  AGREEMENT.   All representations and warranties contained herein shall survive the execution and  delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note  or portion thereof or interest therein and the payment of any Note, and may be relied upon by any  subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of  such Purchaser or any other holder of a Note.  All statements contained in any certificate or other  instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed  representations and warranties of the Company under this Agreement.  Subject to the preceding  sentence, this Agreement, the Notes, the Guaranties and the other Transaction Documents embody  the entire agreement and understanding between each Purchaser and the Company and supersede  all prior agreements and understandings relating to the subject matter hereof.  SECTION 17. AMENDMENT AND WAIVER.  Section 17.1. Requirements.  This Agreement and the Notes may be amended, and the  observance of any term hereof or of the Notes may be waived (either retroactively or  prospectively), only with the written consent of the Company and the Required Holders, except  that:  (a) no amendment or waiver of any of Sections 1, 2, 3, 4, 5, 6 or 21 hereof, or  any defined term (as it is used therein), will be effective as to any Purchaser unless  consented to by such Purchaser in writing; and  (b) no amendment or waiver may, without the written consent of each  Purchaser and the holder of each Note at the time outstanding, (i) subject to Section 12  relating to acceleration or rescission, change the amount or time of any prepayment or  payment of principal of, or reduce the rate or change the time of payment or method of  computation of (x) interest on the Notes or (y) the Make-Whole Amount, (ii) change the  percentage of the Purchasers which is, or the principal amount of the Notes the holders of  which are, required to consent to any amendment or waiver or the principal amount of the  Notes that the Purchasers are to purchase pursuant to Section 2 upon the satisfaction of the  conditions to Closing that appear in Section 4, or (iii) amend any of Sections 8 (except as  set forth in the second sentence of Section 8.2), 11(a), 11(b), 12, 17 and 20.  Section 17.2. Solicitation of Holders of Notes.    (a) Solicitation.  The Company will provide each Purchaser and each holder of  a Note then outstanding with sufficient information, sufficiently far in advance of the date  a decision is required, to enable such Purchaser or holder to make an informed and  considered decision with respect to any proposed amendment, waiver or consent in respect  of any of the provisions hereof or of the Notes or any Guaranty.  The Company will deliver  executed or true and correct copies of each amendment, waiver or consent effected  pursuant to this Section 17 or any Guaranty to each Purchaser and each holder of a Note  promptly following the date on which it is executed and delivered by, or receives the  consent or approval of, the requisite Purchasers or holders of Notes.  

 

  -40-  (b) Payment.  The Company will not directly or indirectly pay or cause to be  paid any remuneration, whether by way of supplemental or additional interest, fee or  otherwise, or grant any security or provide other credit support, to any Purchaser or holder  of a Note as consideration for or as an inducement to the entering into by such Purchaser  or holder of any waiver or amendment of any of the terms and provisions hereof or of any  Guaranty or any Note unless such remuneration is concurrently paid, or security is  concurrently granted or other credit support concurrently provided, on the same terms,  ratably to each Purchaser or holder of a Note even if such Purchaser or holder did not  consent to such waiver or amendment.  (c) Consent in Contemplation of Transfer.  Any consent given pursuant to this  Section 17 or any Guaranty by a holder of a Note that has transferred or has agreed to  transfer its Note to the Company, any Subsidiary or any Affiliate of the Company (or any  other Person in connection with, or in anticipation of, an acquisition of, tender offer for, or  merger with, the Parent or the Operating Partnership) in connection with such consent shall  be void and of no force or effect except solely as to such holder, and any amendments  effected or waivers granted or to be effected or granted that would not have been or would  not be so effected or granted but for such consent (and the consents of all other holders of  Notes that were acquired under the same or similar conditions) shall be void and of no  force or effect except solely as to such holder.  Section 17.3. Binding Effect, Etc.  Any amendment or waiver consented to as provided  in this Section 17 or any Guaranty applies equally to all holders of Notes and is binding upon them  and upon each future holder of any Note and upon the Company without regard to whether such  Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will  extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly  amended or waived or impair any right consequent thereon.  No course of dealing between the  Company and any Purchaser or holder of a Note and no delay in exercising any rights hereunder  or under any Note or Guaranty or other Transaction Document shall operate as a waiver of any  rights of any Purchaser or holder of such Note.  Section 17.4. Notes Held by Company, Etc.  Solely for the purpose of determining  whether the holders of the requisite percentage of the aggregate principal amount of Notes then  outstanding approved or consented to any amendment, waiver or consent to be given under this  Agreement, any Guaranty, the Notes, or any other Transaction Document, or have directed the  taking of any action provided herein or in any Guaranty, the Notes, or any other Transaction  Document to be taken upon the direction of the holders of a specified percentage of the aggregate  principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company  or any of its Affiliates shall be deemed not to be outstanding.  SECTION 18. NOTICES.  Except to the extent otherwise provided in Section 7.4, all notices and communications  provided for hereunder shall be in writing and sent (a) by email if the sender on the same day sends  a confirming copy of such email by an internationally recognized overnight delivery service  (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage  

 

  -41-  prepaid), or (c) by an internationally recognized overnight delivery service (with charges prepaid).   Any such notice must be sent:  (i) if to any Purchaser or its nominee, to such Purchaser or nominee at  the address specified for such communications in Schedule A, or at such other  address as such Purchaser or nominee shall have specified to the Company in  writing,  (ii) if to any other holder of any Note, to such holder at such address as  such other holder shall have specified to the Company in writing, or  (iii) if to the Company, to the Company at its address set forth at the  beginning hereof to the attention of the Chief Financial Officer, or at such other  address as the Company shall have specified to each Purchaser and the holder of  each Note in writing.  Any notice or other communication (i) mailed as hereinabove provided shall be deemed  effectively given or received on the date delivery is indicated on the duly completed United States  Postal Service return receipt, (ii) sent by overnight delivery service shall be deemed effectively  given or received upon receipt, and (iii) sent by email (with a copy sent by an internationally  recognized overnight delivery service) shall be deemed effectively given or received on the day of  such transmission of such notice or other communication if transmitted prior to 5:00 p.m. eastern  time on a Business Day and otherwise shall be deemed effectively given or received on the first  Business Day after the day of transmission of such notice.  Refusal to accept delivery shall be  deemed to constitute delivery.  SECTION 19. REPRODUCTION OF DOCUMENTS.  This Agreement and all documents relating hereto, including, without limitation, (a)  consents, waivers and modifications that may hereafter be executed, (b) documents received by  any Purchaser on the Execution Date or at the Closing (except the Notes themselves), and (c)  financial statements, certificates and other information previously or hereafter furnished to any  Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic,  digital, or other similar process and such Purchaser may destroy any original document so  reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law,  any such reproduction shall be admissible in evidence as the original itself in any judicial or  administrative proceeding (whether or not the original is in existence and whether or not such  reproduction was made by such Purchaser in the regular course of business) and any enlargement,  facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.   This Section 19 shall not prohibit the Company, the Purchasers or any other holder of Notes from  contesting any such reproduction to the same extent that it could contest the original, or from  introducing evidence to demonstrate the inaccuracy of any such reproduction.   SECTION 20. CONFIDENTIAL INFORMATION.  For the purposes of this Section 20, “Confidential Information” means information  delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with  the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in  

 

  -42-  nature and that was clearly marked or labeled or otherwise adequately identified when received by  such Purchaser as being confidential information of the Company or such Subsidiary, provided  that such term does not include information that (a) was publicly known or otherwise known to  such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known  through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c)  otherwise becomes known to such Purchaser other than through disclosure by the Company or any  Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1  that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such  Confidential Information in accordance with procedures adopted by such Purchaser in good faith  to protect confidential information of third parties delivered to such Purchaser, provided that such  Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees,  agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the  administration of the investment represented by its Notes), (ii) its auditors, financial advisors and  other professional advisors who agree to hold confidential the Confidential Information  substantially in accordance with this Section 20, (iii) any other holder of any Note, (iv) any  Institutional Investor to which it sells or offers to sell such Note or any part thereof or any  participation therein (if such Person has agreed in writing prior to its receipt of such Confidential  Information to be bound by this Section 20), (v) any Person from which it offers to purchase any  Security of the Company (if such Person has agreed in writing prior to its receipt of such  Confidential Information to be bound by this Section 20), (vi) any federal or state regulatory  authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any  similar organization, or any nationally recognized rating agency that requires access to information  about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or  disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation  or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y)  in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default  has occurred and is continuing, to the extent such Purchaser may reasonably determine such  delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of  the rights and remedies under such Purchaser’s Notes, this Agreement, any Guaranty, or any other  Transaction Document.  Each holder of a Note, by its acceptance of a Note, will be deemed to have  agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party  to this Agreement.  On reasonable request by the Company in connection with the delivery to any  holder of a Note of information required to be delivered to such holder under this Agreement or  requested by such holder (other than a holder that is a party to this Agreement or its nominee),  such holder will enter into an agreement with the Company embodying this Section 20.  In the event that as a condition to receiving access to information relating to the Company  or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to  this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality  undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or  otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby  and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede  any such other confidentiality undertaking.  

 

  -43-  SECTION 21. SUBSTITUTION OF PURCHASER.  Each Purchaser shall have the right to substitute any one of its Affiliates or another  Purchaser or any one of such other Purchaser’s Affiliates (a “Substitute Purchaser”) as the  purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company,  which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall contain  such Substitute Purchaser’s agreement to be bound by this Agreement and shall contain a  confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations  set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser in this  Agreement (other than in this Section 21), shall be deemed to refer to such Substitute Purchaser in  lieu of such original Purchaser.  In the event that such Substitute Purchaser is so substituted as a  Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser  all of the Notes then held by such Substitute Purchaser, upon receipt by the Company of notice of  such transfer, any reference to such Substitute Purchaser as a “Purchaser” in this Agreement (other  than in this Section 21), shall no longer be deemed to refer to such Substitute Purchaser, but shall  refer to such original Purchaser, and such original Purchaser shall again have all the rights of an  original holder of the Notes under this Agreement.  SECTION 22. MISCELLANEOUS.  Section 22.1. Successors and Assigns.  All covenants and other agreements contained in  this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their  respective successors and assigns (including, without limitation, any subsequent holder of a Note)  whether so expressed or not, except that, subject to Section 10.2, neither the Operating Partnership  nor the Parent may assign or otherwise transfer any of its rights or obligations hereunder or under  the Notes without the prior written consent of each holder.  Section 22.2. Accounting Terms.  All accounting terms used herein which are not  expressly defined in this Agreement have the meanings respectively given to them in accordance  with Generally Accepted Accounting Principles.  Except as otherwise specifically provided herein,  (i) all computations made pursuant to this Agreement shall be made in accordance with Generally  Accepted Accounting Principles, and (ii) all financial statements shall be prepared in accordance  with Generally Accepted Accounting Principles.  For purposes of determining compliance with  this Agreement (including, without limitation, Section 9, Section 10 and the definition of  “Indebtedness”), any election by the Company to measure any financial liability using fair value  (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic  No. 825-10-25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments:   Recognition and Measurement or any similar accounting standard) shall be disregarded and such  determination shall be made as if such election had not been made.  Section 22.3. Severability.  Any provision of this Agreement that is prohibited or  unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such  prohibition or unenforceability without invalidating the remaining provisions hereof, and any such  prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not  invalidate or render unenforceable such provision in any other jurisdiction.  

 

  -44-  Section 22.4. Construction, Etc.  Each covenant contained herein shall be construed  (absent express provision to the contrary) as being independent of each other covenant contained  herein, so that compliance with any one covenant shall not (absent such an express contrary  provision) be deemed to excuse compliance with any other covenant.  Where any provision herein  refers to action to be taken by any Person, or which such Person is prohibited from taking, such  provision shall be applicable whether such action is taken directly or indirectly by such Person.  Section 22.5. Counterparts; Electronic Contracting.  This Agreement may be executed  in any number of counterparts, each of which shall be an original but all of which together shall  constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed  by less than all, but together signed by all, of the parties hereto.  The parties agree to electronic  contracting and signatures with respect to this Agreement, any Guaranty and all other documents  delivered hereunder (other than the Notes). Delivery of an electronic signature to, or a signed copy  of, this Agreement, any Guaranty and all other documents delivered hereunder (other than the  Notes) by facsimile, email or other electronic transmission shall be fully binding on the parties to  the same extent as the delivery of the signed originals and shall be admissible into evidence for all  purposes. Notwithstanding the foregoing, if any Purchaser shall request manually signed  counterpart signatures to this Agreement, any Guaranty or any other documents delivered  hereunder, the Company hereby agrees to use its reasonable endeavors to provide such manually  signed signature pages as soon as reasonably practicable.  Section 22.6. Governing Law.  This Agreement shall be construed and enforced in  accordance with, and the rights of the parties shall be governed by, the law of the State of New  York excluding choice-of-law principles of the law of such State that would permit the application  of the laws of a jurisdiction other than such State.  Section 22.7. Jurisdiction and Process; Waiver of Jury Trial.    (a) The Company irrevocably submits to the non-exclusive jurisdiction of any  New York State or federal court sitting in the Borough of Manhattan, The City of New  York, over any suit, action or proceeding arising out of or relating to this Agreement or the  Notes.  To the fullest extent permitted by applicable law, the Company irrevocably waives  and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is  not subject to the jurisdiction of any such court, any objection that it may now or hereafter  have to the laying of the venue of any such suit, action or proceeding brought in any such  court and any claim that any such suit, action or proceeding brought in any such court has  been brought in an inconvenient forum.   (b) The Company agrees, to the fullest extent permitted by applicable law, that  a final judgment in any suit, action or proceeding of the nature referred to in Section 22.7(a)  brought in any such court shall be conclusive and binding upon it subject to rights of appeal,  as the case may be, and may be enforced in the courts of the United States or the State of  New York (or any other courts to the jurisdiction of which it or any of its assets is or may  be subject) by a suit upon such judgment.   (c) The Company consents to process being served by or on behalf of any  holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.7(a)  

 

  -45-  by mailing a copy thereof by registered or certified mail (or any substantially similar form  of mail), postage prepaid, return receipt requested, to it at its address specified in Section  18 or at such other address of which such holder shall then have been notified pursuant to  said Section.  The Company agrees that such service upon receipt (i) shall be deemed in  every respect effective service of process upon it in any such suit, action or proceeding and  (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid  personal service upon and personal delivery to it.  Notices hereunder shall be conclusively  presumed received as evidenced by a delivery receipt furnished by the United States Postal  Service or any reputable commercial delivery service.   (d) Nothing in this Section 22.7 shall affect the right of any holder of a Note to  serve process in any manner permitted by law, or limit any right that the holders of any of  the Notes may have to bring proceedings against the Company in the courts of any  appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one  jurisdiction in any other jurisdiction.   (e) The parties hereto hereby waive trial by jury in any action brought on or  with respect to this Agreement, the Notes or any other document executed in connection  herewith or therewith.   * * * * *   

 

  [Signature Page to Note Purchase Agreement]  If you are in agreement with the foregoing, please sign a counterpart of this Agreement and  return it to the Company, whereupon this Agreement shall become a binding agreement between  you and the Company.   Very truly yours,     EASTGROUP PROPERTIES, L.P.     By: EastGroup Properties General Partners,    Inc., General Partner       By:  /s/ Brent Wood       Name: Brent Wood   Title: Executive Vice President, Chief    Financial Officer, and    Treasurer      By:  /s/ Staci Tyler       Name: Staci Tyler   Title: Senior Vice President, Chief                     Accounting Officer and Secretary      EASTGROUP PROPERTIES, INC.      By:  /s/ Brent Wood       Name: Brent Wood   Title: Executive Vice President, Chief     Financial Officer, and    Treasurer      By: /s/ Staci Tyler       Name: Staci Tyler   Title: Senior Vice President, Chief                     Accounting Officer and Secretary         

 

  [Signature Page to Note Purchase Agreement]  This Agreement is accepted and   agreed to as of the date hereof.    METLIFE INSURANCE K.K.    By: MetLife Investment Management, LLC, its  Investment Manager    By:  /s/ Thomas Ho       Name: Thomas Ho   Title: Authorized Signatory      MISSOURI REINSURANCE, INC.    By: MetLife Investment Management, LLC, its  Investment Manager    By:  /s/ Thomas Ho       Name: Thomas Ho   Title: Authorized Signatory      METROPOLITAN TOWER LIFE INSURANCE COMPANY    By: MetLife Investment Management, LLC, its  Investment Manager    By:  /s/ Thomas Ho       Name: Thomas Ho   Title: Authorized Signatory       

 

  [Signature Page to Note Purchase Agreement]  This Agreement is accepted and   agreed to as of the date hereof.    THRIVENT FINANCIAL FOR LUTHERANS      By:  /s/ Martin Rosacker      Name: Martin Rosacker   Title: Managing Director       

 

  [Signature Page to Note Purchase Agreement]  This Agreement is accepted and   agreed to as of the date hereof.    TRANSAMERICA LIFE INSURANCE COMPANY    By: AEGON USA Investment Management, LLC,  its investment manager    By:  /s/ Josh Prieskorn      Name: Josh Prieskorn   Title: Vice President       

 

  [Signature Page to Note Purchase Agreement]  This Agreement is accepted and   agreed to as of the date hereof.    AMERICAN GENERAL LIFE INSURANCE COMPANY    By: AIG Asset Management (U.S.), LLC, as  investment adviser    By:  /s/ Bryan W. Eells      Name: Bryan W. Eells   Title: Senior Vice President       

 

  [Signature Page to Note Purchase Agreement]  This Agreement is accepted and   agreed to as of the date hereof.    THE SAVINGS BANK MUTUAL LIFE INSURANCE  COMPANY OF MASSACHUSETTS    By: Voya Investment Management Co. LLC, as  Agent    By:  /s/ Scott Brown       Name: Scott Brown   Title: Vice President       

 

   SCHEDULE B  (to Note Purchase Agreement)  DEFINED TERMS   “Affiliate” means, at any time, and with respect to any Person, any other Person that at  such time directly or indirectly through one or more intermediaries Controls, or is Controlled by,  or is under common Control with, such first Person, and, with respect to the Company, shall  include any Person beneficially owning or holding, directly or indirectly, 10% or more of any class  of voting or Equity Interests of the Company or any Subsidiary or any Person of which the  Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,  10% or more of any class of voting or Equity Interests.  As used in this definition, “Control” means  the possession, directly or indirectly, of the power to direct or cause the direction of the  management and policies of a Person, whether through the ownership of voting securities, by  contract or otherwise.  Unless the context otherwise clearly requires, any reference to an “Affiliate”  is a reference to an Affiliate of the Company.  “Agreement” means this Note Purchase Agreement, including all Schedules attached to  this Agreement, as it may be amended, restated, supplemented or otherwise modified from time to  time.  “Anti-Corruption Laws” means any law or regulation in a U.S. or any non-U.S.  jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt  Practices Act, as amended from time to time, and the U.K. Bribery Act 2010, as amended from  time to time.  “Anti-Money Laundering Laws” means any law or regulation in a U.S. or any non-U.S.  jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other  money laundering predicate crimes, including the Currency and Foreign Transactions Reporting  Act of 1970 (otherwise known as the Bank Secrecy Act), as amended from time to time, and the  USA PATRIOT Act.  “Applicable Percentage” means, when determining the Value of operating real estate  assets for the purposes of this Agreement, a capitalization rate equal to 7.00%, or such higher or  lower percentage as shall be required or permitted under the Revolving Credit Agreement,  including any renewals, extensions, amendments, supplements, restatements, replacements or  refinancings thereof; provided that (a) if the Revolving Credit Agreement shall not be in effect as  of such date of determination, the highest percentage applicable under the Material Credit Facility  or Material Credit Facilities in effect as of such date shall be the Applicable Percentage; and (b) if  no Material Credit Facility shall be in effect as of such date of determination, the highest  percentage applicable under the Material Credit Facility or Material Credit Facilities last in effect  shall be the Applicable Percentage; provided further that the Applicable Percentage shall in no  event be less than 6.75%.  “Blocked Person” means (a) a Person whose name appears on the list of Specially  Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization,  country or regime that is blocked or a target of sanctions that have been imposed under U.S.  Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is  otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any  Person, entity, organization, country or regime described in clause (a) or (b).   

 

  B-2  “Business Day” means (a) for the purposes of Section 8.6 only, any day other than a  Saturday, a Sunday or a day on which commercial banks in New York City are required or  authorized to be closed, and (b) for the purposes of any other provision of this Agreement, any day  other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are  required or authorized to be closed.  “Closing” is defined in Section 3.  “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the  rules and regulations promulgated thereunder from time to time.  “Company” means EastGroup Properties, L.P., a Delaware limited partnership, and  EastGroup Properties, Inc., a Maryland corporation, jointly and severally, or, in each case, any  successor that becomes such in the manner prescribed in Section 10.2.  “Confidential Information” is defined in Section 20.  “Controlled Entity” means any of the Subsidiaries of the Parent or the Operating  Partnership and any of their respective Affiliates.  “Default” means an event or condition the occurrence or existence of which would, with  the lapse of time or the giving of notice or both, become an Event of Default.  “Default Rate” means, with respect to any Note, that rate of interest that is the greater of  (a) 2.00% per annum above the rate of interest stated in clause (a) of the first paragraph of such  Note or (b) 2.00% over the rate of interest publicly announced by JPMorgan Chase Bank in New  York, New York as its “base” or “prime” rate.  “DFW Ground Leases” means (a) that certain Ground Lease Agreement dated as of June  3, 2013, between the Dallas Fort Worth International Airport Board, as Lessor, and DFW Global  Logistics Centre 1, LLC, as Lessee, as subsequently assigned to EG DFW Global 1031, LLC, a  Texas limited liability company, by that certain Assignment of Ground Lease Agreements dated  August 26, 2021, recorded on August 27, 2021 under Document No. D221248988 in the Official  Public Records of Tarrant County, Texas, (b) that certain Ground Lease Agreement (Building C)  dated as of September 18, 2014, between the Dallas Fort Worth International Airport Board, as  Lessor, and DFW Global Logistics Centre 2, LLC, as Lessee, as subsequently assigned to EG  DFW Global 1031, LLC, a Texas limited liability company, by that certain Assignment of Ground  Lease Agreements dated August 26, 2021, recorded on August 27, 2021 under Document No.  D221248988 in the Official Public Records of Tarrant County, Texas, (c) that certain Ground  Lease Agreement (Building D) dated as of September 18, 2014, between the Dallas Fort Worth  International Airport Board, as Lessor, and DFW Global Logistics Centre 2, LLC, as Lessee, as  subsequently assigned to EG DFW Global 1031, LLC, a Texas limited liability company, by that  certain Assignment of Ground Lease Agreements dated August 26, 2021, recorded on August 27,  2021 under Document No. D221248988 in the Official Public Records of Tarrant County, Texas;  and (d) that certain Ground Lease Agreement dated as of January 25, 2018, between the Dallas  Fort Worth International Airport Board, as Lessor, and Logistics Center 6 & 7, LLC, as Lessee, as  subsequently assigned to EastGroup Properties, L.P., a Delaware limited partnership, by that  

 

  B-3  certain Assignment of Ground Lease Agreement dated April 23, 2019, recorded on April 24, 2019  under Document No. 201900102723 in the Official Public Records of Dallas County, Texas.  “Disclosure Documents” is defined in Section 5.3.  “EBITDA” means an amount derived from (a) net earnings, plus (b) depreciation,  amortization, interest expense and income taxes, plus or minus (c) any losses or gains resulting  from sales of depreciable real estate property, write-downs, write-ups, write-offs or other valuation  adjustments of assets or liabilities, in each case, as determined on a consolidated basis in  accordance with Generally Accepted Accounting Principles, and including (without duplication)  the Equity Percentage of EBITDA for the Company’s Unconsolidated Affiliates.  “El Paso Ground Leases” means, collectively:  (a) that certain Butterfield Trail Industrial  Park Lease dated September 13, 1991 (effective September 1, 1991), between the City of El Paso,  Texas, as Lessor, and Kasco Ventures, Inc. d/b/a Kasco Ventures 226/227, as Lessee, as  subsequently assigned to EastGroup Properties, L.P., a Delaware limited partnership, successor by  merger to EastGroup Tennessee Properties, L.P., a California limited partnership, by that certain  Special Warranty Deed and Assignment of Ground Lease dated April 11, 2000, recorded as  Document No. 20000025854, Real Property Records of El Paso County, Texas; (b) that certain  Butterfield Trail Industrial Park Lease dated November 25, 1997 (effective December 1, 1997)  between the City of El Paso, Texas, as Lessor, and EastGroup Properties, L.P., as Lessee,  conveying a leasehold interest in all of Lots 2, 3 and 4, Block 11, Butterfield Trail Industrial Park,  Unit Two, City of El Paso, El Paso County, Texas, as more specifically described in the lease; (c)  that certain Butterfield Trail Industrial Park Lease dated November 25, 1997 (effective December  1, 1997) between the City of El Paso, Texas, as Lessor, and EastGroup Properties, L.P., as Lessee,  conveying a leasehold interest in a portion of Lot 8, Block 12, Butterfield Trail Industrial Park,  Unit Three, City of El Paso, El Paso County, Texas, as more specifically described in the lease;  (d) that certain Butterfield Trail Industrial Park Lease dated December 1, 1997 (effective  December 1, 1997) between the City of El Paso, Texas, as Lessor, and EastGroup Properties, L.P.,  as Lessee, conveying a leasehold interest in a portion of Lot 8 and all of Lot 7, Block 11, Butterfield  Trail Industrial Park, Unit Two, City of El Paso, El Paso County, Texas, as more specifically  described in the lease; and (e) that certain Butterfield Trail Industrial Park Lease dated December  1, 1997 (effective December 1, 1997) between the City of El Paso, Texas, as Lessor, and  EastGroup Properties, L.P., as Lessee, conveying a leasehold interest in a portion of Lot 8 and all  of Lot 9, Block 11, Butterfield Trail Industrial Park, Unit Two, City of El Paso, El Paso County,  Texas, as more specifically described in the lease.  “Eligible Ground Lease” means a lease either expressly approved by the Required  Holders in writing or a lease meeting at least the following requirements:  (a) a remaining term  (including renewal options exercisable at lessee’s sole option) of at least 30 years, (b) the leasehold  interest is transferable and assignable without the landlord’s prior consent, (c) the ground lease is  financeable in that, among other things, it provides or allows for, without further consent from the  landlord, (i) notice and right to cure to lessee’s lender, (ii) a pledge and mortgage of the leasehold  interest, (iii) recognition of a foreclosure of the leasehold interest including entering into a new  lease with the lender, and (iv) no right of landlord to terminate without consent of lessee’s lender.   It is hereby stipulated that the El Paso Ground Leases, the South Florida Ground Leases and DFW  Ground Leases constitute Eligible Ground Leases.  

 

  B-4  “Environmental Laws” means any and all federal, state, local, and foreign statutes, laws,  regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,  licenses, agreements or governmental restrictions relating to pollution and the protection of the  environment or the release of any materials into the environment, including but not limited to those  related to Hazardous Materials.  “Equity Interest” means, with respect to any Person, any share of capital stock of (or other  ownership or profit interests in) such Person, any warrant, option or other right for the purchase or  other acquisition from such Person of any share of capital stock of (or other ownership or profit  interests in) such Person whether or not certificated, any security convertible into or exchangeable  for any share of capital stock of (or other ownership or profit interests in) such Person or warrant,  right or option for the purchase or other acquisition from such Person of such shares (or such other  interests), and any other ownership or profit interest in such Person (including, without limitation,  partnership, member or trust interests therein), whether voting or nonvoting, and whether or not  such share, warrant, option, right or other interest is authorized or otherwise existing on any date  of determination.  “Equity Percentage” means the aggregate ownership percentage of the Company in each  Unconsolidated Affiliate.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from  time to time, and the rules and regulations promulgated thereunder from time to time in effect.  “ERISA Affiliate” means any trade or business (whether or not incorporated) that is  treated as a single employer together with the Company under section 414 of the Code.  “Event of Default” is defined in Section 11.  “Execution Date” is defined in Section 3.  “Fixed Charge Coverage Ratio” means the ratio of (a) the Company’s EBITDA for the  immediately preceding four calendar quarters less the Unit Capital Expenditures for such period,  to (b) all amounts payable and paid on the Company’s Indebtedness (not including irregular final  “balloon” payments of principal due at the stated maturity) plus all of the Company’s Interest  Expense plus all amounts payable and paid on Company’s preferred stock and preferred units, in  each case for the period used to calculate EBITDA.  “Form 10-K” is defined in Section 7.1(b).  “Form 10-Q” is defined in Section 7.1(a).  “Funds From Operations” means net income of the Company determined in accordance  with Generally Accepted Accounting Principles, plus depreciation and amortization; provided that  there shall not be included in such calculation any gain or loss from debt restructuring and sales of  depreciable Properties and impairment losses.  Funds From Operations will be calculated, on an  annualized basis, for the four calendar quarters immediately preceding the date of the calculation.   Funds From Operations shall be calculated on a consolidated basis in accordance with Generally  

 

  B-5  Accepted Accounting Principles, and including (without duplication) the Equity Percentage of  Funds From Operations for the Company’s Unconsolidated Affiliates.  “Generally Accepted Accounting Principles” means, as to a particular Person, such  accounting practice as, in the opinion of the independent accountants of recognized national  standing regularly retained by such Person and acceptable to the Required Holders, conforms at  the time to U.S. generally accepted accounting principles, consistently applied.  Generally  Accepted Accounting Principles means those principles and practices (a) which are recognized as  such by the Financial Accounting Standards Board, (b) which are applied for all periods after the  Execution Date in a manner consistent with the manner in which such principles and practices  were applied to the most recent audited financial statements of the relevant Person furnished to the  Purchasers or the holders or where a change therein has been concurred in by such Person’s  independent auditors, and (c) which are consistently applied for all periods after the Execution  Date so as to reflect properly the financial condition, and results of operations and changes in  financial position, of such Person.  “Governmental Authority” means  (a) the government of  (i) the United States or any state or other political subdivision thereof, or  (ii) any other jurisdiction in which the Company or any Subsidiary conducts  all or any part of its business, or which asserts jurisdiction over any Properties of the  Company or any Subsidiary, or  (b) any entity exercising executive, legislative, judicial, regulatory or administrative  functions of, or pertaining to, any such government.  “Governmental Official” means any governmental official or employee, employee of any  government-owned or government-controlled entity, political party, any official of a political  party, candidate for political office, official of any public international organization or anyone else  acting in an official capacity.  “Guarantors” is defined in Section 1.2.  “Guaranty” is defined in Section 1.2.  “Hazardous Materials” means any and all pollutants, toxic or hazardous wastes or other  substances that might pose a hazard to health and safety, the removal of which may be required or  the generation, manufacture, refining, production, processing, treatment, storage, handling,  transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is  or shall be restricted, prohibited or penalized by any applicable law including, but not limited to,  asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum  products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.  “holder” means, with respect to any Note, the Person in whose name such Note is registered  in the register maintained by the Company pursuant to Section 13.1, provided, however, that if  

 

  B-6  such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related  definitions in this Schedule B, “holder” shall mean the beneficial owner of such Note whose name  and address appears in such register.  “Indebtedness” means and includes, without duplication (a) all obligations for borrowed  money and letter of credit or similar reimbursement obligations, (b) all obligations evidenced by  bonds, debentures, notes or other similar agreements, (c) all obligations to pay the deferred  purchase price of Property or services, except trade accounts payable arising in the ordinary course  of business, (d) all guaranties, endorsements, and other contingent obligations in respect of, or any  obligations to purchase or otherwise acquire, Total Liabilities of others (but not including contracts  to purchase real property and assume related liabilities which are not yet consummated if the buyer  has the ability to terminate the contract at its option), (e) all Total Liabilities secured by any Lien  existing on any interest of the Person with respect to which Indebtedness is being determined in  Property owned subject to such Lien whether or not the Total Liabilities secured thereby shall have  been assumed, (f) dividends of any kind or character or other proceeds payable with respect to any  stock, (g) the Swap Termination Value of all Swap Contracts, and (h) all obligations of such person  to purchase, redeem, retire, defease or otherwise make any payment in respect of any Mandatorily  Redeemable Stock issued by such Person or any other Person valued at the greater of its voluntary  or involuntary liquidation preference plus accrued and unpaid dividends.  Indebtedness shall be  calculated on a consolidated basis in accordance with Generally Accepted Accounting Principles  (subject to Section 22.2), and, in the case of the Company, shall include (without duplication) the  Equity Percentage of Indebtedness for the Company’s Unconsolidated Affiliates.  Indebtedness of any Person shall include all obligations of such Person of the character  described in clauses (a) through (h) to the extent such Person remains legally liable in respect  thereof notwithstanding that any such obligation is deemed to be extinguished under Generally  Accepted Accounting Principles.  “Industrial Buildings” means the Property used as industrial, service center and/or  warehouse purposes of no more than one story, with no more than 15% of the net rentable area  used for mezzanine office space.   “INHAM Exemption” is defined in Section 6.2(e).  “Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note  holding (together with one or more of its affiliates) more than 5% of the aggregate principal amount  of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other  financial institution, any pension plan, any investment company, any insurance company, any  broker or dealer, or any other similar financial institution or entity, regardless of legal form, and  (d) any Related Fund of any holder of any Note.  “Interest Expense” means all of a Person’s paid, accrued or capitalized interest expense  on such Person’s Indebtedness (whether direct, indirect or contingent), and including, without  limitation, interest on all convertible debt, and, in the case of the Company, shall include (without  duplication) the Equity Percentage of Interest Expense for the Company’s Unconsolidated  Affiliates.  

 

  B-7  “Legal Requirement” means any law, statute, ordinance, decree, requirement, order,  judgment, rule, regulation (or interpretation of any of the foregoing) of, and the terms of any  license or permit issued by, any Governmental Authority.  “Lien” means any mortgage, pledge, charge, encumbrance, security interest, collateral  assignment or other lien or restriction of any kind, whether based on common law, constitutional  provision, statute or contract, and shall include reservations, exceptions, encroachments,  easements, rights of way, covenants, conditions, restrictions, leases and other title exceptions.  “Make-Whole Amount” is defined in Section 8.6.  “Mandatorily Redeemable Stock” means, with respect to any Person, any Equity Interest  of such Person which by the terms of such Equity Interest (or by the terms of any security into  which it is convertible or for which it is exchangeable or exercisable), upon the happening of any  event or otherwise (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation  or otherwise (other than an Equity Interest to the extent redeemable in exchange for common stock  or other equivalent common Equity Interests), (b) is convertible into or exchangeable or  exercisable for Indebtedness or Mandatorily Redeemable Stock, or (c) is redeemable at the option  of the holder thereof, in whole or in part (other than an Equity Interest which is redeemable solely  in exchange for common stock or other equivalent common Equity Interests); in each case, on or  prior to the Maturity Date of the Series B Notes.  “Material” means material in relation to the business, operations, affairs, financial  condition, assets, properties, or prospects of the Company and its Subsidiaries taken as a whole.  “Material Adverse Change” means a change which could reasonably be expected to have  a Material Adverse Effect.  “Material Adverse Effect” means a material adverse effect on (a) the financial condition  or results of operations of the Company and its Subsidiaries taken as a whole, (b) the ability of an  Obligor to perform its material obligations under the Transaction Documents to which it is a party  taken as a whole, (c) the validity or enforceability of the Transaction Documents taken as a whole,  or (d) the material rights and remedies of the holders of the Notes under the Transaction Documents  taken as a whole.   “Material Credit Facility” means, as to the Company and its Subsidiaries,  (a) (i) the Revolving Credit Facility; (ii) the Note Purchase Agreement dated August  28, 2013, as amended October 7, 2015, and August 22, 2018, and the 3.80% Senior Notes due  August 28, 2025, issued August 28, 2013 thereunder by EastGroup Properties, L.P. and EastGroup  Properties, Inc. to the purchasers thereof; (iii) the Note Purchase Agreement dated October 1, 2015,  as amended August 22, 2018, and the 3.97% Senior Notes due October 1, 2025, issued October 1,  2015 thereunder (and Note No. I thereunder subsequently re-issued as Note No. 4 on October 1,  2017), by EastGroup Properties, L.P. and EastGroup Properties, Inc. to the purchasers thereof; (iv)  the Note Purchase Agreement dated October 7, 2015, as amended August 22, 2018, and the 3.99%  Senior Notes due October 7, 2025, issued October 7, 2015 thereunder by EastGroup Properties,  L.P. and EastGroup Properties, Inc. to the purchasers thereof; (v) the 2016 Term Loan Agreement,  entered into as of April 1, 2016, as amended as of February 16, 2018, June 29, 2018, October 17,  

 

  B-8  2018, and September 10, 2021, by and among EastGroup Properties, L.P., EastGroup Properties,  Inc., the lenders party thereto (the “2016 Term Lenders-April”) and Wells Fargo Bank, National  Association, as Agent for the 2016 Term Lenders-April; (vi) the Note Purchase Agreement dated  December 15, 2016, as amended August 6, 2018, and the 3.48% Senior Notes, Series A, due  December 15, 2024 (and Note No. RA-3 thereunder subsequently re-issued as Note No. RA-3A  on September 1, 2021) and the 3.75% Senior Notes, Series B, due December 15, 2026, issued  December 15, 2016 thereunder by EastGroup Properties, L.P. and EastGroup Properties, Inc. to  the purchasers thereof; (vii) the Note Purchase Agreement dated December 13, 2017, as amended  August 22, 2018, and the 3.46% Senior Notes due December 13, 2024 issued thereunder by  EastGroup Properties, L.P. and EastGroup Properties, Inc., to the purchasers thereof; (viii) the  Note Purchase Agreement dated April 10, 2018, as amended August 22, 2018, and the 3.93%  Senior Notes due April 10, 2028, issued April 10, 2018 thereunder by EastGroup Properties, L.P.  and EastGroup Properties, Inc. to the purchasers thereof; (ix) the Note Purchase Agreement dated  March 28, 2019 and the 4.27% Senior Notes due March 28, 2029 issued March 28, 2019 thereunder  by EastGroup Properties, L.P. and EastGroup Properties, Inc. to the purchasers thereof; (x) the  Note Purchase Agreement dated as of August 15, 2019 and the 3.54% Senior Notes due August  15, 2031 issued on August 15, 2019 thereunder by EastGroup Properties, L.P. and EastGroup  Properties, Inc. to the purchasers thereof; (xi) the Note Purchase Agreement dated as of August  19, 2019 and the 3.47% Senior Notes due August 19, 2029 issued on August 19, 2019 thereunder  (and Notes No. R-5 and R-6 thereunder subsequently re-issued as Note No. R-5A on September  1, 2021) by EastGroup Properties, L.P. and EastGroup Properties, Inc. to the purchasers thereof;  (xii) the Term Loan Agreement entered into as of October 10, 2019, as amended as of September  29, 2021, by and among EastGroup Properties, L.P., EastGroup Properties, Inc., the lenders party  thereto (the “2019 Term Lenders”), Regions Bank, as Agent for the 2019 Term Lenders, U.S.  Bank National Association, as Syndication Agent, and Regions Capital Markets, a Division of  Regions Bank, and U.S. Bank National Association, as Joint Lead Arrangers and Joint  Bookrunners; (xiii) the 2020 Term Loan Agreement entered into as of March 25, 2020, as amended  as of June 29, 2021, and by that certain Release of Liens dated July 15, 2020, by and among  EastGroup Properties, L.P., EastGroup Properties, Inc., the lenders party thereto (the “2020 Term  Lenders”), PNC Bank, National Association, as Administrative Agent for the 2020 Term Lenders  and PNC Capital Markets LLC as sole Lead Arranger and Bookrunner; and (xiv) the Note Purchase  Agreement dated as of August 17, 2020 and the 2.61% Senior Notes, Series A, due October 14,  2030 and 2.71% Senior Notes, Series B, due October 14, 2032, in each case issued on October 14,  2020 thereunder by EastGroup Properties, L.P. and EastGroup Properties, Inc. to the purchasers  thereof; (xv) the 2021 Term Loan Agreement entered into as of March 18, 2021, as amended as of  September 27, 2021, by and among EastGroup Properties, L.P., EastGroup Properties, Inc., the  lenders party thereto (the “2021 Term Lenders”), The Bank of New York Mellon as  Administrative Agent for the 2021 Term Lenders; (xvi) the Note Purchase Agreement dated as of  April 8, 2021 and the 2.74% Senior Notes due June 10, 2031 issued on June 10, 2021 thereunder  by EastGroup Properties, L.P. and EastGroup Properties, Inc. to the purchasers thereof; (xvii) the  Note Purchase Agreement dated as of February 3, 2022 and the 3.03% Senior Notes due April 20,  2032 issued on April 20, 2022 thereunder by EastGroup Properties, L.P. and EastGroup Properties,  Inc. to the purchasers thereof; and (xviii) the 2022 Term Loan Agreement dated as of March 31,  2022, by and among EastGroup Properties, L.P., EastGroup Properties, Inc., the lenders party  thereto (the “2022 Term Lenders”), PNC Bank, National Association, as Administrative Agent  for the 2022 Term Lenders and PNC Capital Markets LLC as sole Lead Arranger and Bookrunner;  

 

  B-9  and including, in each case, any renewals, extensions, amendments, supplements, restatements,  replacements or refinancing thereof; and  (b) any other agreement(s) creating or evidencing indebtedness for borrowed money  (excluding any such indebtedness incurred or assumed in connection with a particular real property  (including any refinancing of such indebtedness) for which (i) recourse for payment is  contractually limited to such property (subject to customary non-recourse carve-out provisions)  and (ii) any Lien created to secure all or any part of such indebtedness extends solely to such  property and other property that is an improvement thereto or is acquired for specific use in  connection therewith) entered into on or after the Execution Date by the Company or any  Subsidiary, or in respect of which the Company or any Subsidiary is an obligor or otherwise  provides a guarantee or other credit support, in a principal amount outstanding or available for  borrowing equal to or greater than $50,000,000 (or the equivalent of such amount in the relevant  currency of payment, determined as of the date of the closing of such facility based on the exchange  rate of such other currency).  “Material Subsidiary” means a Subsidiary to which more than 3.00% of Total Asset  Value is attributable on an individual basis.  “Maturity Date” is defined in the first paragraph of each Note.  “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.  “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is  defined in section 4001(a)(3) of ERISA).  “NAIC” means the National Association of Insurance Commissioners or any successor  thereto.  “Net Book Basis” means book value net of depreciation of a Property, as determined in  accordance with Generally Accepted Accounting Principles.  “Net Operating Income” means, for any income producing operating Property of the  Company, the difference between (a) any operating income, proceeds and other income from such  Property during the determination period, less (b) an amount equal to all costs and expenses  (excluding security deposits, interest expense and any expenditures that are capitalized in  accordance with Generally Accepted Accounting Principles, but including market-based internal  management fee expenses) incurred as a result of, or in connection with, or properly allocated to,  the operation or leasing of such Property during the determination period.  Net Operating Income  shall be calculated on a consolidated basis in accordance with Generally Accepted Accounting  Principles (excluding the impact from straight-line rent-leveling adjustments and amortization of  above- and below-market rent intangibles, but including (without duplication) the Equity  Percentage of Net Operating Income for the Company’s Unconsolidated Affiliates.  “Net Worth” means the stockholders’ equity of the Company and its Subsidiaries  determined on a consolidated basis in accordance with Generally Accepted Accounting Principles,  plus accumulated depreciation and amortization.  

 

  B-10  “Non-U.S. Plan” means any plan, fund or other similar program that (a) is established or  maintained outside the United States by the Company or any Subsidiary primarily for the benefit  of employees of the Company or one or more Subsidiaries residing outside the United States,  which plan, fund or other similar program provides, or results in, retirement income, a deferral of  income in contemplation of retirement or payments to be made upon termination of employment,  and (b) is not subject to ERISA or the Code.  “Notes” is defined in Section 1.1.  “Obligors” means any Person now or hereafter primarily or secondarily obligated to pay  all or any part of the amounts due under the Transaction Documents, including the Company and  the Guarantors.  “Occupancy Level” means the occupied square footage that is leased to bona fide tenants  not Affiliates of any Obligor or the subject property manager (or any of their respective Affiliates)  paying the stated rent under written leases, based on the occupancy level at the time of  determination.  “OFAC” means the Office of Foreign Assets Control of the United States Department of  the Treasury.  “OFAC Sanctions Program” means any economic or trade sanction that OFAC is  responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found  at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.  “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other  officer of the Company whose responsibilities extend to the subject matter of such certificate.  “Operating Partnership” means EastGroup Properties, L.P., a Delaware limited  partnership, or any successor that becomes such in the manner prescribed in Section 10.2.  “Organizational Documents” means with respect to a corporation, the certificate of  incorporation, articles of incorporation and bylaws of such corporation; with respect to a  partnership, the partnership agreement establishing such partnership; with respect to a joint  venture, the joint venture agreement establishing such joint venture, and with respect to a trust, the  instrument establishing such trust; in each case including any and all modifications thereof as of  the date of the Transaction Document referring to such Organizational Document and any and all  future modifications thereof which are consented to by the holders of the Notes.  “Original Guarantors” means EastGroup Properties Holdings, Inc., a Delaware  corporation, EastGroup Properties General Partners, Inc., a Delaware corporation, and EastGroup  TRS, Inc., a Delaware corporation, or any successor that becomes such in the manner prescribed  in Section 10.2.  “Parent” means EastGroup Properties, Inc., a Maryland corporation, or any successor that  becomes such in the manner prescribed in Section 10.2.  

 

  B-11  “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in  ERISA or any successor thereto.  “Permitted Encumbrances” means (a) encumbrances consisting of zoning restrictions,  easements, or other restrictions on the use of real property, provided that such items do not  materially impair the use of such property for the purposes intended and none of which is violated  in any material respect by existing or proposed structures or land use; (b) materialmen’s,  mechanic’s, warehousemen’s and other like Liens arising in the ordinary course of business,  securing payment of Total Liabilities whose payment is not yet due, or that are being contested in  good faith by appropriate proceedings diligently conducted, and for or against which the Property  owner has established adequate reserves in accordance with Generally Accepted Accounting  Principles; (c) Liens for taxes, assessments and governmental charges or assessments that are not  yet due and payable or are being contested in good faith by appropriate proceedings diligently  conducted, and for or against which the Property owner has established adequate reserves in  accordance with Generally Accepted Accounting Principles; (d) Liens on real property which are  insured around or against by title insurance; (e) Liens securing assessments or charges payable to  a property owner association or similar entity which assessments are not yet due and payable or  are being diligently contested in good faith; (f) Liens in favor of the Company securing obligations  owing by a Subsidiary to the Company; and (g) Liens securing this Agreement, the Notes, the  other Transaction Documents, and Indebtedness hereunder and thereunder, if any.  “Person” means an individual, partnership, corporation, limited liability company,  association, trust, unincorporated organization, business entity or Governmental Authority.  “Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to  Title I of ERISA that is or, within the preceding five years, has been established or maintained, or  to which contributions are or, within the preceding five years, have been made or required to be  made, by the Company or any ERISA Affiliate or with respect to which the Company or any  ERISA Affiliate may have any liability.  “Pool” is defined in Section 9.8(a).  “Presentation” is defined in Section 5.3.  “Proper Form” means in form and substance reasonably satisfactory to the Required  Holders.  “Property” or “Properties” means any interest in any kind of property or asset, whether  real, leasehold, personal or mixed, tangible or intangible.  “PTE” is defined in Section 6.2(a).  “Purchaser” or “Purchasers” means each of the purchasers that has executed and  delivered this Agreement to the Company and such Purchaser’s successors and assigns (so long as  any such assignment complies with Section 13.2); provided, however, that any Purchaser of a Note  that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as  the result of a transfer thereof pursuant to Section 13.2 shall cease to be included within the  meaning of “Purchaser” of such Note for the purposes of this Agreement upon such transfer.  

 

  B-12  “QPAM Exemption” is defined in Section 6.2(d).  “Qualified Institutional Buyer” means any Person who is a “qualified institutional  buyer” within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.  “Recourse Amount” means the amount of the Indebtedness of an Unconsolidated Affiliate  which is recourse to the Company or another Subsidiary of the Company.  “Related Fund” means, with respect to any holder of any Note, any fund or entity that (a)  invests in Securities or bank loans, and (b) is advised or managed by such holder, the same  investment advisor as such holder or by an affiliate of such holder or such investment advisor.  “Required Holders” means at any time (a) prior to the Closing, the Purchasers and (b) on  or after the Closing, the holders of more than 50% in principal amount of the Notes at the time  outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).  “Responsible Officer” means any Senior Financial Officer and any other officer of the  Company with responsibility for the administration of the relevant portion of this Agreement.  “Restricted Payment” is defined in Section 10.11.  “Revolving Credit Agreement” means the Fifth Amended And Restated Credit  Agreement, entered into as of June 29, 2021, by and among EastGroup Properties, L.P., EastGroup  Properties, Inc., the financial institutions signatory thereto (the “Lenders”), PNC Bank, National  Association, as Administrative Agent for the Lenders, Regions Bank, as Syndication Agent, Wells  Fargo Bank, National Association, Bank of America, N.A. and U.S. Bank National Association,  as Co-Documentation Agents, and PNC Capital Markets LLC and Regions Capital Markets as  Joint Lead Arrangers and Joint Bookrunner.  “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill  Companies, Inc. and any successor thereto.  “SEC” means the Securities and Exchange Commission of the United States, or any  successor thereto.  “Secured Debt” means the Indebtedness of the Company secured by a Lien, and any  Indebtedness of any of the Company’s Subsidiaries owed to a Person not an Affiliate of the  Company or such Subsidiary.  “Secured Debt to Total Asset Value Ratio” means the ratio (expressed as a percentage)  of Secured Debt to Total Asset Value.  “Securities” or “Security” shall have the meaning specified in section 2(1) of the  Securities Act.  “Securities Act” means the Securities Act of 1933, as amended from time to time, and the  rules and regulations promulgated thereunder from time to time in effect.   

 

  B-13  “Senior Financial Officer” means the chief financial officer, principal accounting officer,  treasurer or comptroller of the Company.  “Series A Notes” is defined in Section 1.1.  “Series B Notes” is defined in Section 1.1.  “Source” is defined in Section 6.2.  “South Florida Ground Leases” means that certain Lease Agreement dated January 15,  1985, between the City of Fort Lauderdale, Florida, as Lessor, and James R. Liberty, an individual,  and Keenan Development, Inc., a Florida corporation, as General Partners of K & L Partnership,  a Florida General Partnership, as Lessee, recorded August 12, 1985 at Official Records Book  12742, Page 764 of the Public Records of Broward County, Florida, as amended by that certain (i)  Amendment to Lease dated February 17, 1987, recorded April 9, 1987 at Official Records Book  14332, Page 940 of the Public Records of Broward County, Florida, (ii) Second Amendment to  Lease Agreement dated October 4, 1988, recorded November 16, 1988 at Official Records Book  15960, Page 0274 of the Public Records of Broward County, Florida, (iii) Third Amendment to  Lease Agreement dated September 4, 1992, recorded April 10, 1993 at Official Records Book  20543, Page 0435 of the Public Records of Broward County, Florida, (iv) Fourth Amendment to  Lease Agreement dated June 27, 2001, and (v) Fifth Amendment to Lease Agreement dated April  30, 2001, and as assigned to EastGroup Properties, L.P. by that certain Assignment dated June 23,  1997.  “Stabilization Date” means the earlier to occur of (a) the date the Occupancy Level  reaches 90% for the first time, and (b) one year after the construction of the building improvements,  other than tenant improvements, is substantially complete.  “State Sanctions List” means a list that is adopted by any state Governmental Authority  within the United States pertaining to Persons that engage in investment or other commercial  activities in Iran or any other country that is a target of economic sanctions imposed under U.S.  Economic Sanctions Laws.  “Subsidiary” means, as to any Person, any other Person in which such first Person or one  or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient  equity or voting interests to enable it or them (as a group) ordinarily, in the absence of  contingencies, to elect a majority of the directors (or Persons performing similar functions) of such  second Person, and any partnership or joint venture if more than a 50% interest in the profits or  capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person  and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily  take major business actions without the prior approval of such Person or one or more of its  Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a  reference to a Subsidiary of the Company.  “Substitute Purchaser” is defined in Section 21.  “SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.  

 

  B-14  “Swap Contract” means (a) any and all interest rate swap transactions, basis swap  transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity  swaps, commodity options, forward commodity contracts, equity or equity index swaps or options,  bond or bond price or bond index swaps or options or forward foreign exchange transactions, cap  transactions, floor transactions, currency options, spot contracts or any other similar transactions  or any of the foregoing (including, but without limitation, any options to enter into any of the  foregoing), and (b) any and all transactions of any kind, and the related confirmations, which are  subject to the terms and conditions of, or governed by, any form of master agreement published  by the International Swaps and Derivatives Association, Inc. or any International Foreign  Exchange Master Agreement.  “Swap Termination Value” means, in respect of any one or more Swap Contracts, after  taking into account the effect of any legally enforceable netting agreement relating to such Swap  Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and  termination value(s) determined in accordance therewith, such termination value(s), and (b) for  any date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market  values(s) for such Swap Contracts, as determined based upon one or more mid-market or other  readily available quotations provided by any recognized dealer in such Swap Contracts.  “Total Asset Value” means the sum of (without duplication) (a) the aggregate Value of  all of Company’s operating real estate assets, plus (b) the amount of any cash and cash equivalents,  excluding tenant security and other restricted deposits of the Company, plus (c) investments by  the Company in Unconsolidated Affiliates that are engaged primarily in the business of investment  in and operation of Industrial Buildings, valued at an amount equal to the Value of each  Unconsolidated Affiliate’s operating real estate assets multiplied by the Equity Percentage for that  Unconsolidated Affiliate, plus (d) investments by the Company in readily marketable securities of  another Person, not an Affiliate of any Obligor, traded on a national trading exchange, that is a real  estate investment trust under Section 856(c)(1) of the Code, or that is a real estate operating  company, plus (e) investments by the Company in real estate assets that are being constructed or  developed to be Industrial Buildings, but are not yet in operation, plus (f) investments by the  Company in loans, advances, and extensions of credit to Persons (who are not Affiliates of any  Obligor) secured by valid and enforceable first and second priority Liens on real estate that are  paid current and under which no default has occurred, plus (g) land owned by the Company not in  development.  Except as otherwise provided herein, Total Asset Value shall be calculated on a  consolidated basis in accordance with Generally Accepted Accounting Principles.  “Total Liabilities” means and includes, without duplication, the sum of (a) Indebtedness  of the Company and (b) all other items which in accordance with Generally Accepted Accounting  Principles would be included on the liability side of a balance sheet of the Company on the date  as of which Total Liabilities is to be determined (excluding capital stock, surplus, acquired  unfavorable leases (as defined in Financial Accounting Standards Board Accounting Standards  Codification Topic 805), surplus reserves and deferred credits), and including (without  duplication), for each of the Company’s Unconsolidated Affiliates, the Equity Percentage  multiplied by the Total Liabilities of such Unconsolidated Affiliate.  

 

  B-15  “Total Liabilities to Total Asset Value Ratio” means the ratio (expressed as a  percentage) of Total Liabilities to Total Asset Value, with Total Asset Value based on the  immediately preceding calendar quarter.   “Transaction Documents” means this Agreement, the Notes, the Guaranties, all  instruments, certificates and agreements now or hereafter executed or delivered to the Purchasers  or the holders of the Notes pursuant to any of the foregoing, and all amendments, modifications,  renewals, extensions, increases and rearrangements of, and substitutions for, any of the foregoing.   “Unconsolidated Affiliate” means, in respect of any Person, any other Person (other than  a Person whose stock is traded on a national trading exchange) in whom such Person holds a voting  equity or ownership interest and whose financial results would not be consolidated under Generally  Accepted Accounting Principles with the financial results of such Person on the consolidated  financial statements of such Person.   “Unencumbered Interest Coverage Ratio” means the ratio of (a) the sum of the Net  Operating Income for each Property for the immediately preceding four calendar quarters, that is  not subject to any Lien as of the last day of the preceding calendar quarter to (b) the Unsecured  Interest Expense for the period used to calculate Net Operating Income.  With regard to any such  Property that has not been owned by the Company for the immediately preceding four calendar  quarters, or that has achieved the Stabilization Date during such period, the Net Operating Income  from such Property shall be annualized based upon the period of Company’s ownership, or the  period following the Stabilization Date, as applicable.   “Unit Capital Expenditure” means, for the purpose of determining the Fixed Charge  Coverage Ratio and Value, on an annual basis, an amount equal to the sum of (a) the aggregate  number of gross square feet contained in each completed, operating office building owned by the  Company or its Subsidiary as of the last day of the applicable reporting period (or calendar  quarter), multiplied by $0.75, plus (b) the aggregate number of gross square feet contained in each  completed, operating Industrial Building owned by the Company or its Subsidiary as of the last  day of the applicable reporting period (or calendar quarter), multiplied by $0.10.   “United States” or “U.S.” means the United States of America.  “Unsecured Debt” means all Indebtedness other than Secured Debt.  “Unsecured Interest Expense” means the Company’s Interest Expense on all of the  Company’s Unsecured Debt.   “USA PATRIOT Act” means United States Public Law 107-56, Uniting and  Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct  Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and  regulations promulgated thereunder from time to time in effect.   “U.S. Economic Sanctions Laws” means those laws, executive orders, enabling  legislation or regulations administered and enforced by the United States pursuant to which  economic sanctions have been imposed on any Person, entity, organization, country or regime,  including the Trading with the Enemy Act, the International Emergency Economic Powers Act,  

 

  B-16  the Iran Sanctions Act, the Sudan Accountability and Divestment Act, in each case as amended  from time to time, and any other OFAC Sanctions Program.  “Value” means the sum of (a) for Property (other than Property described in (b) below and  clauses (e) and (g) of the definition of Total Asset Value), the result of dividing (i) the aggregate  Net Operating Income of the subject Property based on the immediately preceding six calendar  months and multiplied by two, less the aggregate Unit Capital Expenditure for such Property, by  (ii) the Applicable Percentage; plus (b) for (i) Property that the Company or its Subsidiary has not  owned for the full preceding six calendar months, or (ii) Property (whether acquired or  constructed), for which construction is complete, and, with respect to which, the Stabilization Date  has not occurred on or prior to the date which is six months preceding the date of determination,  the aggregate Net Book Basis of the subject Property.  Notwithstanding anything to the contrary  herein, in no event shall a Property be valued at less than zero.  “Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent of  all of the Equity Interests (except directors’ qualifying shares) of which are owned by any one or  more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time.  

 

   SCHEDULE 1.1(a)  (to Note Purchase Agreement)  FORM OF SERIES A NOTE  EASTGROUP PROPERTIES, L.P.   EASTGROUP PROPERTIES, INC.   4.90% SERIES A SENIOR NOTE DUE [__________ __],1 2033  No. AR-__ __________ _, 20__  $__________ PPN: 27731# AQ8  FOR VALUE RECEIVED, the undersigned, EASTGROUP PROPERTIES, L.P., a Delaware limited  partnership, and EASTGROUP PROPERTIES, INC., a Maryland corporation, jointly and severally  (together, herein called the “Company”), hereby promise to pay to ____________, or registered  assigns, the principal sum of _____________________ DOLLARS (or so much thereof as shall not  have been prepaid) on [__________ __],2 2033 (the “Maturity Date”), with interest (computed  on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at the  rate of 4.90% per annum from the date hereof, payable semiannually, on the [__]3 day of  [__________] and [__________]4  in each year, commencing with the [__________ __] or  [__________ __]5 next succeeding the date hereof, and on the Maturity Date, until the principal  hereof shall have become due and payable, and (b) to the extent permitted by law, (x) on any  overdue payment of interest and (y) during the continuance of an Event of Default, on such unpaid  balance and on any overdue payment of any Make-Whole Amount, at a rate per annum from time  to time equal to the greater of (i) 6.90% or (ii) 2.00% over the rate of interest publicly announced  by JPMorgan Chase Bank from time to time in New York, New York as its “base” or “prime” rate,  payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).  Payments of principal of, interest on and any Make-Whole Amount with respect to this  Note are to be made in lawful money of the United States at JPMorgan Chase Bank in New York,  New York or at such other place as the Company shall have designated by written notice to the  holder of this Note as provided in the Note Purchase Agreement referred to below.  This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to  the Note Purchase Agreement dated as of August 16, 2022 (as from time to time amended, the  “Note Purchase Agreement”) between the Company and the respective Purchasers named therein  and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance  hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note  Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase  Agreement.  Unless otherwise indicated, capitalized terms used in this Note shall have the  respective meanings ascribed to such terms in the Note Purchase Agreement.  This Note is a registered Note and, as provided in the Note Purchase Agreement, upon  surrender of this Note for registration of transfer accompanied by a written instrument of transfer    1 Insert month and numerical day that is 11 years from the Closing.   2 Insert month and numerical day that is 11 years from the Closing.  3 Insert numerical day of the Closing.  4 Insert month that is 11 years from the Closing and six months thereafter.  5 Insert month and numerical day that is 11 years from the Closing and six months thereafter.  

 

  S-1.1(a)-2  duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing,  a new Note for a like principal amount (or new Notes in an aggregate principal amount equal to  the unpaid principal amount of the surrendered Note, as provided by Section 13.2 of the Note  Purchase Agreement) will be issued to, and registered in the name of, the transferee.  Prior to due  presentment for registration of transfer, the Company may treat the Person in whose name this  Note is registered as the owner hereof for the purpose of receiving payment and for all other  purposes, and the Company will not be affected by any notice to the contrary.  This Note is subject to optional prepayment, in whole or from time to time in part, at the  times and on the terms specified in the Note Purchase Agreement, but not otherwise.  If an Event of Default occurs and is continuing, the principal of this Note may be declared  or otherwise become due and payable in the manner, at the price (including any applicable  Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.  This Note shall be construed and enforced in accordance with, and the rights of the  Company and the holder of this Note shall be governed by, the law of the State of New York  excluding choice-of-law principles of the law of such State that would permit the application of  the laws of a jurisdiction other than such State.  EASTGROUP PROPERTIES, L.P.    By:  EastGroup Properties General Partners,     Inc., General Partner      By:          Name:   Title:        By:          Name:   Title:        EASTGROUP PROPERTIES, Inc.      By:          Name:   Title:        By:          Name:   Title:  

 

   SCHEDULE 1.1(b)  (to Note Purchase Agreement)  FORM OF SERIES B NOTE  EASTGROUP PROPERTIES, L.P.   EASTGROUP PROPERTIES, INC.   4.95% SERIES B SENIOR NOTE DUE [__________ __],6 2034  No. BR-__ __________ _, 20__  $__________ PPN: 27731# AR6  FOR VALUE RECEIVED, the undersigned, EASTGROUP PROPERTIES, L.P., a Delaware limited  partnership, and EASTGROUP PROPERTIES, INC., a Maryland corporation, jointly and severally  (together, herein called the “Company”), hereby promise to pay to ____________, or registered  assigns, the principal sum of _____________________ DOLLARS (or so much thereof as shall not  have been prepaid) on [__________ __],7 2034 (the “Maturity Date”), with interest (computed  on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at the  rate of 4.95% per annum from the date hereof, payable semiannually, on the [__]8 day of  [__________] and [__________]9  in each year, commencing with the [__________ __] or  [__________ __]10 next succeeding the date hereof, and on the Maturity Date, until the principal  hereof shall have become due and payable, and (b) to the extent permitted by law, (x) on any  overdue payment of interest and (y) during the continuance of an Event of Default, on such unpaid  balance and on any overdue payment of any Make-Whole Amount, at a rate per annum from time  to time equal to the greater of (i) 6.95% or (ii) 2.00% over the rate of interest publicly announced  by JPMorgan Chase Bank from time to time in New York, New York as its “base” or “prime” rate,  payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).  Payments of principal of, interest on and any Make-Whole Amount with respect to this  Note are to be made in lawful money of the United States at JPMorgan Chase Bank in New York,  New York or at such other place as the Company shall have designated by written notice to the  holder of this Note as provided in the Note Purchase Agreement referred to below.  This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to  the Note Purchase Agreement dated as of August 16, 2022 (as from time to time amended, the  “Note Purchase Agreement”) between the Company and the respective Purchasers named therein  and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance  hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note  Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase  Agreement.  Unless otherwise indicated, capitalized terms used in this Note shall have the  respective meanings ascribed to such terms in the Note Purchase Agreement.  This Note is a registered Note and, as provided in the Note Purchase Agreement, upon  surrender of this Note for registration of transfer accompanied by a written instrument of transfer    6 Insert month and numerical day that is 12 years from the Closing.   7 Insert month and numerical day that is 12 years from the Closing.  8 Insert numerical day of the Closing.  9 Insert month that is 12 years from the Closing and six months thereafter.  10 Insert month and numerical day that is 12 years from the Closing and six months thereafter.  

 

  S-1.1(b)-2  duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing,  a new Note for a like principal amount (or new Notes in an aggregate principal amount equal to  the unpaid principal amount of the surrendered Note, as provided by Section 13.2 of the Note  Purchase Agreement) will be issued to, and registered in the name of, the transferee.  Prior to due  presentment for registration of transfer, the Company may treat the Person in whose name this  Note is registered as the owner hereof for the purpose of receiving payment and for all other  purposes, and the Company will not be affected by any notice to the contrary.  This Note is subject to optional prepayment, in whole or from time to time in part, at the  times and on the terms specified in the Note Purchase Agreement, but not otherwise.  If an Event of Default occurs and is continuing, the principal of this Note may be declared  or otherwise become due and payable in the manner, at the price (including any applicable  Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.  This Note shall be construed and enforced in accordance with, and the rights of the  Company and the holder of this Note shall be governed by, the law of the State of New York  excluding choice-of-law principles of the law of such State that would permit the application of  the laws of a jurisdiction other than such State.  EASTGROUP PROPERTIES, L.P.    By:  EastGroup Properties General Partners,     Inc., General Partner      By:          Name:   Title:        By:          Name:   Title:        EASTGROUP PROPERTIES, Inc.      By:          Name:   Title:        By:          Name:   Title:   

 

  SCHEDULE 1.2  (to Note Purchase Agreement)  FORM OF GUARANTY   GUARANTY dated as of [__________ __], 2022, made by [____________________], a  [____________________] (the “Guarantor”), in favor of the holders from time to time of the  Notes referred to below (collectively the “Obligees”).  WHEREAS, EastGroup Properties, L.P., a Delaware limited partnership (the “Operating  Partnership”) and EastGroup Properties, Inc., a Maryland corporation (the “Parent” and, together  with the Operating Partnership, the “Company”), have entered into a Note Purchase Agreement  dated as of August 16, 2022 (as amended or otherwise modified from time to time, collectively the  “Note Agreement” and terms defined therein and not otherwise defined herein are being used  herein as so defined) with the institutional purchasers listed in Schedule A thereto, providing for  the issuance and sale by the Company to such purchasers of $150,000,000 in aggregate principal  amount of its Senior Notes consisting of $75,000,000 aggregate principal amount of its 4.90%  Series A Senior Notes due [__________ __], 2033 (the “Series A Notes”) and $75,000,000  aggregate principal amount of its 4.95% Series B Senior Notes due [__________ __], 2034 (the  “Series B Notes”; the Series A Notes and the Series B Notes are hereinafter referred to collectively  as the “Notes”); and  WHEREAS, it is a requirement of the Note Agreement that the Guarantor execute and deliver  this Guaranty; and  WHEREAS, the Guarantor is a Subsidiary of the Parent and the Guarantor will derive  substantial direct and indirect benefit from the execution and delivery of this Guaranty.  NOW, THEREFORE, in consideration of the premises the Guarantor hereby agrees as follows:  Section 1. GUARANTEE.  The Guarantor unconditionally and irrevocably guarantees, as primary obligor and not  merely as surety,  (i) the punctual payment when due, whether at stated maturity, by prepayment, by  acceleration or otherwise, of all obligations of the Company arising under the Note Agreement and  the Notes, including all extensions, modifications, substitutions, amendments and renewals  thereof, whether for principal, interest (including, without limitation, interest on any overdue  principal, the Make-Whole Amount, if any, and interest at the rates specified in the Notes and  interest accruing or becoming owing both prior to and subsequent to the commencement of any  proceeding against or with respect to the Parent or the Operating Partnership under any applicable  Debtor Relief Laws as defined below), Make-Whole Amount, fees, expenses, indemnification or  otherwise, and  (ii) the due and punctual performance and observance by the Company of all covenants,  agreements and conditions on its part to be performed and observed under the Note Agreement  and the Notes,  (all such obligations are called the “Guaranteed Obligations”); provided that such performance  and obligation shall not fall due any earlier than is required of the Company under the Note  

 

  S-1.2-2  Agreement and the Notes; and provided further that the aggregate liability of the Guarantor  hereunder in respect of the Guaranteed Obligations shall not exceed at any time the lesser of (1)  the amount of the Guaranteed Obligations and (2) the maximum amount for which the Guarantor  is liable under this Guaranty without such liability being deemed to have been a fraudulent transfer  (or any analogous concept) under applicable Debtor Relief Laws, as determined by a court of  competent jurisdiction.  As used herein, the term “Debtor Relief Laws” means any applicable  liquidation, conservatorship, bankruptcy, moratorium, rearrangement, insolvency, reorganization  or similar debtor relief laws affecting the rights of creditors generally from time to time in effect.  The Guarantor also agrees to pay, in addition to the amount stated above, any and all  reasonable expenses (including reasonable counsel fees and expenses) incurred by any Obligee in  enforcing any rights under this Guaranty or in connection with any amendment of this Guaranty.  Without limiting the generality of the foregoing, this Guaranty guarantees, to the extent  provided herein, the payment of all amounts which constitute part of the Guaranteed Obligations  and would be owed by any other Person to any Obligee but for the fact that they are unenforceable  or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding  involving such Person.  Section 2. GUARANTEE ABSOLUTE.  The obligations of the Guarantor under Section 1 of this Guaranty constitute a present and  continuing guaranty of payment and not of collectability and the Guarantor guarantees that the  Guaranteed Obligations will be paid strictly in accordance with the terms of the Note Agreement  and the Notes, regardless of any law, regulation or order now or hereafter in effect in any  jurisdiction affecting any of such terms or the rights of any Obligee with respect thereto.  The  obligations of the Guarantor under this Guaranty are independent of the Guaranteed Obligations,  and a separate action or actions may be brought and prosecuted against the Guarantor to enforce  this Guaranty, irrespective of whether any action is brought against the Parent or the Operating  Partnership or any other Person liable for the Guaranteed Obligations or whether the Parent or the  Operating Partnership or any other such Person is joined in any such action or actions.  To the  extent permitted by law, the liability of the Guarantor under this Guaranty shall be primary,  absolute, irrevocable, and unconditional irrespective of:  (i) any lack of validity or enforceability of any Guaranteed Obligation, the Note  Agreement, any Note, any other Guaranty or any agreement or instrument relating thereto;  (ii) any change in the time, manner or place of payment of, or in any other term of, all  or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to  departure from the Note Agreement, any Note or any other Guaranty;  (iii) any taking, exchange, release or non-perfection of any collateral, or any taking,  release or amendment or waiver of or consent to departure by any other Person liable, or any other  guarantee, for all or any of the Guaranteed Obligations;  (iv) any manner of application of collateral, or proceeds thereof, to all or any of the  Guaranteed Obligations, or any manner of sale or other disposition of any collateral or any other  assets of the Parent or the Operating Partnership or any other Subsidiary;  

 

  S-1.2-3  (v) any change, restructuring or termination of the corporate structure or existence of  the Parent or the Operating Partnership or any other Subsidiary; or  (vi) any other circumstance (including, without limitation, any statute of limitations)  that might otherwise constitute a defense, offset or counterclaim available to, or a discharge of, the  Parent or the Operating Partnership.  This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any  time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned  by any Obligee or any other Person upon the insolvency, bankruptcy or reorganization of the Parent  or the Operating Partnership or otherwise, all as though such payment had not been made.  Section 3. WAIVERS.  The Guarantor hereby irrevocably waives, to the extent permitted by applicable law:  (i) promptness, diligence, presentment, notice of acceptance and any other notice with  respect to any of the Guaranteed Obligations and this Guaranty;  (ii) any requirement that any Obligee or any other Person protect, secure, perfect or  insure any Lien or any property subject thereto or exhaust any right or take any action against the  Parent or the Operating Partnership or any other Person or any collateral;  (iii) with respect to any Obligee any defense, offset or counterclaim arising by reason  of any claim or defense based upon any action by any other Obligee;  (iv) any duty on the part of any Obligee to disclose to the Guarantor any matter, fact or  thing relating to the business, operation or condition of any Person and its assets now known or  hereafter known by such Obligee; and  (v) any rights by which it might be entitled to require suit on an accrued right of action  in respect of any of the Guaranteed Obligations or require suit against the Parent or the Operating  Partnership, any other guarantor or any other Person.  Section 4. WAIVER OF SUBROGATION AND CONTRIBUTION.  The Guarantor shall not assert, enforce, or otherwise exercise (A) any right of subrogation  to any of the rights, remedies, powers, privileges or Liens of any Obligee or any other beneficiary  against the Parent or the Operating Partnership or any other obligor on the Guaranteed Obligations  or any collateral or other security, or (B) any right of recourse, reimbursement, contribution,  indemnification, or similar right against the Parent or the Operating Partnership in respect of the  Guaranteed Obligations, and the Guarantor hereby waives any and all of the foregoing rights,  remedies, powers, privileges and the benefit of, and any right to participate in, any collateral or  other security given to any Obligee or any other beneficiary to secure payment of the Guaranteed  Obligations, until such time as the Guaranteed Obligations have been indefeasibly paid in full.  If,  notwithstanding the foregoing, the Guarantor receives any proceeds as a result of the foregoing  actions, such proceeds shall be held by the Guarantor in trust for the Obligees and segregated from  other funds of the Guarantor.  

 

  S-1.2-4  Section 5. REPRESENTATIONS AND WARRANTIES.  The Guarantor hereby represents and warrants as follows:  (i) The Guarantor is a [corporation/limited liability company/other entity to be  described] duly organized, validly existing and, where legally applicable, in good standing under  the laws of its jurisdiction of formation.  The execution, delivery and performance of this Guaranty  have been duly authorized by all necessary action on the part of the Guarantor.  (ii) The execution, delivery and performance by the Guarantor of this Guaranty will  not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of  any Lien in respect of any material property of the Guarantor or any Subsidiary of the Guarantor  under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate  charter, memorandum and articles of association, regulations or by-laws, or any other material  agreement or instrument to which the Guarantor or any Subsidiary of the Guarantor is bound or by  which the Guarantor or any Subsidiary of the Guarantor or any of their respective material  properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms,  conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or  Governmental Authority applicable to the Guarantor or any Subsidiary of the Guarantor or (iii)  violate any provision of any statute or other rule or regulation of any Governmental Authority  applicable to the Guarantor or any Subsidiary of the Guarantor.  (iii) The Guarantor and the Company are members of the same consolidated group of  companies and the Guarantor will derive substantial direct and indirect benefit from the execution  and delivery of this Guaranty.  (iv) After giving effect to the execution and delivery of this Guaranty the Guarantor is  solvent and generally able to pay its debts as and when they become payable in the ordinary course.   The payment obligations of the Guarantor under this Guaranty will rank at least pari passu with  all other unsecured and unsubordinated Indebtedness of the Guarantor.  Section 6. AMENDMENTS, ETC.  No amendment or waiver of any provision of this Guaranty and no consent to any departure  by the Guarantor therefrom shall in any event be effective unless the same shall be in writing and  signed by the Required Holders, and then such waiver or consent shall be effective only in the  specific instance and for the specific purpose for which given; provided that no amendment, waiver  or consent shall, unless in writing and signed by all Obligees, (A) limit the liability of or release  the Guarantor hereunder (except in the case of releases made pursuant to the terms of the Note  Agreement), (B) postpone any date fixed for, or change the amount of, any payment hereunder or  (C) change the percentage of Notes the holders of which are required to take any action hereunder.  Section 7. ADDRESSES FOR NOTICES.  All notices and other communications provided for hereunder shall be in writing and sent  (A) by email if the sender on the same day sends a confirming copy of such notice by a recognized  international overnight delivery service (charges prepaid), (B) by registered or certified mail with  return receipt requested (postage prepaid), or (C) by a recognized international overnight delivery  

 

  S-1.2-5  service (with charges prepaid).  Such notice if sent to the Guarantor shall be addressed to it at the  address of the Guarantor provided below its name on the signature page of this Guaranty or at such  other address as the Guarantor may hereafter designate by notice to each holder of Notes, or if sent  to any holder of Notes, shall be addressed to it as set forth in the Note Agreement.  Any notice or  other communication herein provided to be given to the holders of all outstanding Notes shall be  deemed to have been duly sent if sent as aforesaid to each of the registered holders of the Notes at  the time outstanding at the address for such purpose of such holder as it appears on the Note register  maintained by the Company in accordance with the provisions of Section 13.1 of the Note  Agreement.  Any notice or other communication (i) mailed as hereinabove provided shall be  deemed effectively given or received on the date delivery is indicated on the duly completed  United States Postal Service return receipt, (ii) sent by recognized international overnight delivery  service shall be deemed effectively given or received on the date of package delivery as indicated  on the records of or certificates provided by the overnight delivery service, and (iii) sent by email  (with a copy sent by an internationally recognized overnight delivery service) shall be deemed  effectively given or received on the day of such transmission of such notice or other  communication if transmitted prior to 5:00 p.m. eastern time on a Business Day and otherwise  shall be deemed effectively given or received on the first Business Day after the day of  transmission of such notice.  Refusal to accept delivery shall be deemed to constitute delivery.   Section 8. NO WAIVER; REMEDIES.  No failure on the part of any Obligee to exercise, and no delay in exercising, any right  hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right  hereunder preclude any other or further exercise thereof or the exercise of any other right.  The  remedies herein provided are cumulative and not exclusive of any remedies provided by law.   Section 9. CONTINUING GUARANTEE.  This Guaranty is a continuing guarantee of payment and performance and shall (A) remain  in full force and effect until payment in full of the Guaranteed Obligations and all other amounts  payable under this Guaranty, (B) be binding upon the Guarantor, its successors and assigns and  (C) inure to the benefit of and be enforceable by the Obligees and their successors, transferees and  assigns.   Section 10. JURISDICTION AND PROCESS; WAIVER OF JURY TRIAL.  The Guarantor irrevocably submits to the non-exclusive jurisdiction of any New York State  or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action  or proceeding arising out of or relating to this Guaranty.  To the fullest extent permitted by  applicable law, the Guarantor irrevocably waives and agrees not to assert, by way of motion, as a  defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any  objection that it may now or hereafter have to the laying of the venue of any such suit, action or  proceeding brought in any such court and any claim that any such suit, action or proceeding  brought in any such court has been brought in an inconvenient forum.   The Guarantor consents to process being served in any suit, action or proceeding of the  nature referred to in this Section by mailing a copy thereof by registered or certified mail, postage  

 

  S-1.2-6  prepaid, return receipt requested, to the Guarantor at its address specified in Section 7 or at such  other address of which the Obligees shall then have been notified pursuant to said Section 7.  The  Guarantor agrees that such service upon receipt (i) shall be deemed in every respect effective  service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent  permitted by applicable law, be taken and held to be valid personal service upon and personal  delivery to the Guarantor.  Notices hereunder shall be conclusively presumed received as  evidenced by a delivery receipt furnished by the United States Postal Service or any reputable  internationally recognized courier or overnight delivery service.   Nothing in this Section 10 shall affect the right of any Obligee to serve process in any  manner permitted by law, or limit any right that the Obligees may have to bring proceedings  against the Guarantor in the courts of any appropriate jurisdiction or to enforce in any lawful  manner a judgment obtained in one jurisdiction in any other jurisdiction.   THE GUARANTOR WAIVES TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO  THIS GUARANTY OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH.   Section 11. GOVERNING LAW.  This Guaranty shall be construed and enforced in accordance with, and the rights of the  Guarantor and the Obligees shall be governed by, the laws of the State of New York, excluding  choice-of-law principles of the law of such State that would permit the application of laws of a  jurisdiction other than such State.   Section 12. ELECTRONIC CONTRACTING.  This Guaranty may be executed in any number of counterparts, each of which shall be an  original but all of which together shall constitute one instrument.  Each counterpart may consist of  a number of copies hereof, each signed by less than all, but together signed by all, of the parties  hereto.  The parties agree to electronic contracting and signatures with respect to this Guaranty  and all other documents delivered hereunder. Delivery of an electronic signature to, or a signed  copy of, this Guaranty and all other documents delivered hereunder by facsimile, email or other  electronic transmission shall be fully binding on the parties to the same extent as the delivery of  the signed originals and shall be admissible into evidence for all purposes. Notwithstanding the  foregoing, if the Obligees shall request manually signed counterpart signatures to this Guaranty or  any other documents delivered hereunder, the Guarantor hereby agrees to use its reasonable  endeavors to provide such manually signed signature pages as soon as reasonably practicable.  [Remainder of Page Left Intentionally Blank]     

 

  S-1.2-7  IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and  delivered as of the date first above written.   [GUARANTOR]         By:     Name:   Title:      By:    Name:   Title:    Address:    Attention:    Telephone:    Telecopy:Exhibit 10.1

 

Execution Version

 

SEVENTH AMENDMENT

TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This SEVENTH AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as of August 15, 2022 and is entered into by and
among CLEARWAY ENERGY OPERATING LLC, a Delaware limited liability company (the “Borrower”), CLEARWAY ENERGY LLC, a
Delaware limited liability company (“Holdings”), each other Guarantor party hereto, JPMORGAN CHASE BANK, N.A. (“JPM”),
in its capacity as the administrative agent under the Credit Agreement (the “Administrative Agent”), and THE LENDERS
party hereto and is made with reference to that certain Amended and Restated Credit Agreement dated as of April 25, 2014, as amended by
that certain First Amendment to Amended & Restated Credit Agreement, dated as of June 26, 2015, that certain Second Amendment to Amended
 & Restated Credit Agreement, dated as of February 6, 2018, that certain Third Amendment to Amended and Restated Credit Agreement and
Administrative Agent Resignation and Appointment Agreement, dated as of April 30, 2018, that certain Fourth Amendment to Amended and Restated
Credit Agreement, dated as of November 30, 2018, that certain Fifth Amendment to Amended and Restated Credit Agreement, dated as of December
20, 2019, and that certain Sixth Amendment to Amended and Restated Credit Agreement and First Amendment to Amended and Restated Pledge
and Security Agreement, dated as of November 30, 2021 (the “Credit Agreement,” and as amended by this Amendment and
as may be further amended, amended and restated, supplemented or otherwise modified from time to time, the “Amended Credit Agreement”),
by and among the Borrower, Holdings, the other Guarantors party thereto, the Lenders and L/C Issuers party thereto and the Administrative
Agent. Capitalized terms used herein without definition shall have the same meanings herein as set forth in the Amended Credit Agreement,
and the rules of interpretation set forth in Section 1.02 of the Amended Credit Agreement shall apply hereto, mutatis mutandis.

 

RECITALS

 

WHEREAS, the Loan Parties
have requested that the Lenders agree to amend certain provisions of the Credit Agreement as provided for herein; and

 

WHEREAS, subject to
the satisfaction of the conditions specified herein, the undersigned Lenders are willing to agree to such amendments to the Credit Agreement
in accordance with Section 11.01 of the Credit Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

     

     

    

 

SECTION I.
AMENDMENTS TO CREDIT AGREEMENT

 

Effective on and as of the
date on which each of the conditions set forth in Section II has been satisfied (or waived by the party or parties entitled to
the benefit thereof):

 

A.             The following definition in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

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

 

(a)       Equity
Investor and TotalEnergies shall cease to collectively own, directly or indirectly, at least 35% (as measured by voting power rather than
number of shares or other equity securities) of the equity securities of Parent entitled to vote for members of the board of directors
or equivalent governing body of Parent on a fully-diluted basis (and taking into account all such securities that such “person”
or “group” has the right to acquire pursuant to any option right); or

 

(b)       [reserved];
or

 

(c)       Parent,
Equity Investor and TotalEnergies collectively shall cease to, directly or indirectly, own and control legally and beneficially all of
the Equity Interests in Holdings; or

 

(d)       Holdings
shall cease to directly own and control legally and beneficially all of the Equity Interests in the Borrower.

 

Notwithstanding
anything herein to the contrary or any provision of Section 13d-3 of the Exchange Act, a Person or group shall not be deemed to beneficially
own Equity Interests subject to a stock or asset purchase agreement, merger agreement, option agreement, warrant agreement or similar
agreement (or voting or option or similar agreement related thereto) until the consummation of the acquisition of the Equity Interests
in connection with the transactions contemplated by such agreement.

 

B.             Section
1.01 of the Credit Agreement is hereby amended by adding the following definitions in alphabetical order:

 

“Seventh
Amendment” means that certain Seventh Amendment to this Agreement, dated as of August 15, 2022.

 

“Seventh
Amendment Effective Date” has the meaning given to such term in the Seventh Amendment.

 

“TotalEnergies”
means any of TotalEnergies SE, a French société européenne, and its Affiliates.

 

SECTION II.
CONDITIONS

 

This Amendment shall become
effective as of the first date on which each of the following conditions in this Section II have been satisfied (the date of satisfaction
of such conditions being referred to herein as the “Seventh Amendment Effective Date”):

 

A.               
Deliverables to Administrative Agent. The Administrative Agent’s receipt of the following, each of which shall be
originals or electronically transmitted copies of originals (followed as soon as reasonably practicable by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Seventh Amendment Effective Date
and each in form and substance reasonably satisfactory to the Administrative Agent and each of the Lenders: (i) a counterpart signature
page of this Amendment duly executed by each of the Loan Parties, (ii) counterpart signature pages of this Amendment duly executed by
the Administrative Agent and (iii) a counterpart signature page of this Amendment duly executed by the Required Lenders.

 

    2

     

    

 

B.                 Payment
of Fees and Expenses. The Administrative Agent shall have received all reasonable and documented out-of-pocket fees and expenses
incurred in connection with this Amendment on or prior to the Seventh Amendment Effective Date, including, to the extent invoiced at
least three (3) Business Days prior to the Seventh Amendment Effective Date, reimbursement or other payment of all out-of-pocket fees
and expenses in each case required to be reimbursed or paid by the Borrower under the Credit Agreement.

 

C.                
Consummation of Acquisition. The acquisition of 50.0% of GIP III Zephyr Acquisition Holdings L.P., a Delaware limited partnership,
by TotalEnergies shall have been consummated, as confirmed to the Administrative Agent in writing (via e-mail or otherwise) by the Borrower
or its representatives.

 

D.               
Representations and Warranties. Each of the representations and warranties in clauses (A), (B), (C)(i), (D) and (E) (solely
with respect to Section 5.14 of the Credit Agreement) of Section III shall be true and correct in all material respects on the Seventh
Amendment Effective Date (unless made solely as of a prior date, in which case such representation and warranty was true and correct in
all material respects as of such date).

 

SECTION III.
REPRESENTATIONS AND WARRANTIES

 

Each Loan Party which is a
party hereto represents and warrants to each Lender that the following statements are true and correct in all material respects as of
the date hereof:

 

A.                Corporate
Power and Authority. Each Loan Party has all requisite power and authority and all requisite governmental licenses, authorizations,
consents and approvals to execute, deliver and perform its obligations under this Amendment and to perform its obligations under the
Amended Credit Agreement and consummate the transactions contemplated by this Amendment and the Amended Credit Agreement.

 

B.                
Authorization of Amendment. The execution, delivery and performance by each Loan Party of this Amendment have been duly
authorized by all necessary corporate or other organizational action.

 

C.                
No Conflict. The execution, delivery and performance by each Loan Party of this Amendment do not and will not (i) contravene
the terms of any of such Person’s Organization Documents; (ii) conflict with or result in any breach or contravention of, or require
any payment to be made under, (a) any material Contractual Obligation to which such Person is a party or affecting such Person or the
properties of such Person or any of its Subsidiaries, or (b) any order, injunction, writ or decree of any Governmental Authority or any
arbitral award to which such Person or its property is subject; (iii) result in the creation or imposition of any Lien upon or with respect
to any property or assets now owned or hereafter acquired by such Person or any of its Subsidiaries (other than Liens created under the
Collateral Documents); or (iv) violate any material Law.

 

D.               
Binding Effect. This Amendment has been duly executed and delivered by each Loan Party that is party hereto. Each of this
Amendment and the Amended Credit Agreement constitute a legal, valid and binding obligation of such Loan Party, enforceable against each
Loan Party that is party hereto or thereto in accordance with its terms, except as enforceability hereof or thereof may be limited by
(i) bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other laws now or hereafter in effect relating to creditors’
rights generally (including specific performance) and (ii) general equitable principles (whether considered in a proceeding in equity
or at law), and to the discretion of the court before which any proceeding may be brought.

 

    3

     

    

 

E.                
Representations and Warranties, Etc. (x) All representations and warranties contained in Article V of the Credit Agreement
are true and correct in all material respects (but in all respects if such representation or warranty is qualified by “materiality”
or “Material Adverse Effect”), except to the extent that such representations and warranties specifically refer to an earlier
date, in which case they were true and correct in all material respects (but in all respects if such representation or warranty is qualified
by “materiality” or “Material Adverse Effect”) as of such earlier date, and except that the representations and
warranties contained in Sections 5.05(a) and (b) of the Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to Sections 6.01(a) and (b) of the Credit Agreement, respectively, and the representations and warranties
contained in Section 5.05(c) of the Credit Agreement shall be deemed to refer to the statements furnished pursuant to Section
6.01(a) of the Credit Agreement with respect to the fiscal year ended December 31, 2021, and (y) no Default or Event of Default has
occurred and is continuing.

 

SECTION V. ACKNOWLEDGMENT
AND CONSENT OF LOAN PARTIES; REAFFIRMATION OF GUARANTIES AND LIENS

 

A.               
Acknowledgment and Consent. Each Loan Party hereby acknowledges that it has reviewed the terms and provisions of the Credit
Agreement and this Amendment and consents to the amendments of the Credit Agreement effected pursuant to this Amendment.

 

B.                
Guaranty and Lien Reaffirmation. Each Loan Party hereby (i) confirms that each Loan Document (including the Guaranty), both
before and immediately after giving effect to and, if applicable, as amended by this Amendment, to which it is a party or otherwise bound,
and all Collateral encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance
with the Loan Documents, as amended by this Amendment, if applicable, the payment and performance of the Secured Obligations and (ii)
ratifies all guaranties and Liens granted by it pursuant to the Loan Documents.

 

C.                
Continuing Effect. Each Loan Party hereby acknowledges and agrees that (i) each Loan Document, both before and immediately
after giving effect to and, if applicable, as amended by this Amendment, to which it is a party or otherwise bound shall continue in full
force and effect and (ii) all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the
execution or effectiveness of this Amendment.

 

D.               
No Filings Necessary. Except as otherwise required herein, each Loan Party hereby confirms that no additional filings or
recordings need to be made, and no other actions need to be taken, by such Loan Party in order to maintain the perfection, enforceability
or validity of the security interests created pursuant to the Collateral Documents.

 

    4

     

    

 

SECTION VI.
MISCELLANEOUS

 

A. Reference to and
Effect on Credit Agreement and Other Loan Documents.

 

(i) On and after the Seventh
Amendment Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,”
 “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the
 “Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Credit Agreement
shall mean and be a reference to the Credit Agreement as amended by this Amendment.

 

(ii) Except as specifically
amended by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified
and confirmed.

 

(iii) The execution, delivery
and performance of this Amendment shall not constitute either (x) a novation of the Credit Agreement or any of the other Loan Documents
or any obligations thereunder or (y) a waiver of any provision of, or operate as a waiver of any right, power or remedy of any Agent,
Lender or L/C Issuer under, the Credit Agreement or any of the other Loan Documents. The amendments contained herein are limited to the
specified provisions and circumstances described and shall not be deemed to prejudice any rights not specifically addressed herein which
any Agent, Lender or L/C Issuer may now have or may have in the future under the Amended Credit Agreement or any other Loan Document.

 

B. Loan Document.
For the avoidance of doubt, this Amendment constitutes a Loan Document.

 

C. Headings.
Section and Subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part
of this Amendment for any other purpose or be given any substantive effect.

 

D. Governing Law.
THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

E. Submission to Jurisdiction;
Waiver of Venue; Service of Process; Waiver of Jury Trial. The provisions of Sections 11.14(b), (c) and (d) and Section 11.15
of the Amended Credit Agreement are hereby incorporated by reference, mutatis mutandis, as if set forth in full herein.

 

F. Counterparts; Electronic
Execution. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of
which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart
of a signature page of this Amendment by telecopy or other electronic imaging means shall be effective as delivery of a manually executed
counterpart of this Amendment. The words “execution,” “execute”, “signed,” “signature,”
and words of like import in or related to any document to be signed in connection with this Amendment and the transactions contemplated
hereby shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic
platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal
effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may
be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions
Act.

 

[Remainder of this page intentionally left blank.]

 

    5

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written
above.

 

	BORROWER:	CLEARWAY ENERGY OPERATING LLC
	 	 
	 	 
	 	By: 	/s/ Christopher S. Sotos
	 	Name: 	Christopher S. Sotos
	 	Title: 	President & Chief Executive Officer
	 	 
	 	 
	GUARANTORS: 	CLEARWAY ENERGY LLC
	 	DGPV HOLDING LLC
	 	 
	 	 
	 	By: 	/s/ Christopher S. Sotos
	 	Name: 	Christopher S. Sotos
	 	Title: 	President & Chief Executive Officer

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]

 

     

     

    

 

	 	ALTA WIND 1-5 HOLDING COMPANY, LLC
	 	ALTA WIND COMPANY, LLC
	 	Capistrano Portfolio Holdings LLC
	 	CBAD HOLDINGS II, LLC
	 	CLEARWAY SOLAR STAR LLC
	 	CWEN PINNACLE REPOWERING HOLDINGS LLC
	 	CWSP RATTLESNAKE HOLDING LLC
	 	DAGGETT SOLAR HOLDCO LLC
	 	DG-CS HOLDINGS LLC
	 	DG SREC HOLDCO LLC
	 	ENERGY CENTER HONOLULU HOLDINGS LLC
	 	LANGFORD HOLDING LLC
	 	LIGHTHOUSE RENEWABLE HOLDINGS LLC
	 	MARSH LANDING HOLDCO LLC
	 	NIMH SOLAR HOLDINGS LLC
	 	OCOTILLO WINDPOWER HOLDINGS LLC
	 	PAWVA Wind Holdings LLC
	 	PORTFOLIO SOLAR I, LLC
	 	ROSAMOND SOLAR HOLDCO LLC
	 	RPV HOLDING LLC
	 	SOLAR FLAGSTAFF ONE LLC
	 	SOLAR IGUANA LLC
	 	SOLAR LAS VEGAS MB 1 LLC
	 	SOLAR TABERNACLE LLC
	 	SOUTH TRENT HOLDINGS LLC
	 	SPP ASSET HOLDINGS, LLC
	 	SPP FUND II HOLDINGS, LLC
	 	SPP FUND II, LLC
	 	SPP FUND II-B, LLC
	 	SPP FUND III, LLC
	 	THERMAL CANADA INFRASTRUCTURE HOLDINGS LLC
	 	THERMAL HAWAII DEVELOPMENT HOLDINGS LLC
	 	UTAH SOLAR MASTER HOLDCO LLC
	 	WV WIND HOLDINGS LLC

 

	 	By:	/s/
    Christopher S. Sotos
	 	Name: 	Christopher S. Sotos
	 	Title: 	President

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]

 

     

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	as Administrative Agent
	 	 	 
	 	 	 
	 	By: 	/s/Arina Mavilian
	 	Name: 	Arina Mavilian
	 	Title:  	Authorized Signatory

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]

 

     

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/Arina Mavilian
	 	Name: 	Arina Mavilian
	 	Title:  	Authorized Signatory

 
[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	BANK OF AMERICA, N.A.,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/Christopher J. Heitker
	 	Name: 	Christopher J. Heitker
	 	Title:  	 Director

 
[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	BARCLAYS BANK PLC,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Sydney G. Dennis
	 	Name: 	 Sydney G. Dennis
	 	Title:  	 Director

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	CITIBANK, N.A.,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/Ashwani Khubani
	 	Name: 	  Ashwani Khubani
	 	Title:  	  Managing Director

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	GOLDMAN SACHS BANK USA,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Keshia Leday 
	 	Name:	  Keshia Leday
	 	Title:  	   Authorized Signatory

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Mikhail Faybusovich
	 	Name: 	  Mikhail Faybusovich
	 	Title:  	   Authorized Signatory
	 	 	 
	 	By:	/s/ Michael Wagner
	 	Name:	 Michael Wagner
	 	Title:	 Authorized Signatory

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]

 

     

     

    

 

	 	KEYBANK NATIONAL ASSOCIATION,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Renee M. Bonnell
	 	Name: 	 Renee M. Bonnell
	 	Title:  	  Senior Vice President

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	MORGAN STANLEY SENIOR FUNDING, INC.
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Rikin Pandya
	 	Name: 	  Rikin Pandya
	 	Title:  	 Vice President

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	MUFG UNION BANK, N.A. f/k/a UNION BANK, N.A.,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Jeffrey Fesenmaier
	 	Name: 	Jeffrey Fesenmaier
	 	Title:  	  Managing Director

 

[Signature Page to Seventh Amendment to A&R Credit Agreement]
 

     

     

    

 

	 	ROYAL BANK OF CANADA,
	 	as a Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Frank Lambrinos
	 	Name: 	  Frank Lambrinos
	 	Title:  	  Authorized Signatory

 
[Signature Page to Seventh Amendment to A&R Credit Agreement]

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