Document:

exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED

RETIREMENT AGREEMENT

     This
Agreement dated as of 22nd day of August, 2003 between AmerUs Group
Co., an Iowa Corporation (“AmerUs”) and Victor N. Daley, Executive Vice
President, Chief Administration and Human Resources Officer of AmerUs and
certain of its affiliates (“Mr. Daley”) hereby amends, restates, confirms and
formalizes certain understandings between Mr. Daley and AmerUs which were
agreed to by Mr. Daley and AmerUs at the time Mr. Daley agreed to undertake his
duties on behalf of AmerUs and its affiliates and predecessors and which have
thereafter been updated to reflect certain changed circumstances.

     IN CONSIDERATION of Mr. Daley’s agreement to accept the aforementioned
position with AmerUs and the continuing performance of those duties and in
consideration of the promises and covenants made hereunder, AmerUs and Mr.
Daley agree as follows.

     1. Except as provided in the succeeding sentence, beginning on August 31,
2008, AmerUs agrees to pay to Mr. Daley, or his spouse in the event that Mr.
Daley should predecease her, a monthly amount equal to the Retirement Amount as
calculated below. In the event that Mr. Daley terminates his employment with
AmerUs and its affiliates prior to August 31, 2008, Mr. Daley may elect, by
giving at least 30 days written notice to the AmerUs Benefit and Pension
Committee, to have monthly payments of the Retirement Amounts (or such lesser
amount as provided in the immediately succeeding sentence) commence as of any
month after such termination of employment. In the event of such an election,
the monthly amount payable to Mr. Daley shall be equal to the Retirement Amount
reduced pursuant to the formula set forth in Section 4.03 of the 1/1/96 AmerUs
Pension Plan. For the purposes of the preceding sentence, the term “Early
Retirement Date” in such Section 4.03 shall be replaced with the term “Early

 

 

Commencement Date,” as defined in Section 4 of this Agreement, and the
term “Normal Retirement Age” in such Section 4.03 shall be replaced with the
term “age 65.” The monthly payments made pursuant to this Agreement shall be
made on the last day of each month beginning August 31, 2008, (or Mr. Daley’s
Early Commencement Date, if applicable) until the later of the death of Mr.
Daley or his spouse.

     2. The “Retirement Amount” means the amount calculated by (A) multiplying
..2693% by the number of months that Mr. Daley has been and is employed on a
full time basis by AmerUs and its predecessor companies, (B) multiplying the
product derived in clause (A) by sum of (i) the result of (a) multiplying
$3,000 times the number of months that Mr. Daley has been employed on a
full-time basis by AmerUs minus 37 months and (b) dividing the product derived
in clause (i)(a) by the number of months that Mr. Daley has been employed on a
full-time basis; plus (ii) Mr. Daley’s average monthly income as derived from
his Pensionable Earnings, as defined in Article I Subsection (17) of the
All*AmerUs Savings and Retirement Plan (without regard to the last sentence in
such Subsection (17)), excluding income from stock options, stock grants and
other awards under the AmerUs Stock Incentive Plan, and then (C) subtracting
the “Monthly Base Amount” (as hereinafter defined) from the product of clauses
A and B. The Monthly Base Amount is an amount calculated by (i) adding the
maximum amount which AmerUs would be permitted to contribute in the aggregate
as its “matching”, “core” and “interim benefit supplement” contributions (as
those terms are used in the Plans) for each month that Mr. Daley has been
employed on a full time basis by AmerUs to Mr. Daley’s accounts in the
All*AmerUs Savings and Retirement Plan and the All*AmerUs Supplemental
Executive

2

 

Retirement Plan, All*AmerUs Excess Benefit Plan and the Non-Qualified
Non-Funded Deferred Compensation Agreement of October 1, 1998 (together the
“Plans”) assuming that Mr. Daley would make the maximum permitted deferral;
(ii) deducting from the amounts determined under clause (i) two percent (2%) of
the sum of a) Mr. Daley’s Pensionable Earnings for each month that he is
employed on a full time basis after January 1, 1996 and b) $3000 per month for
each month that he is employed on a full time basis after October 1, 1998, and
then (iii) crediting the amount of the remainder determined pursuant to the
subtraction of clause (ii) from the amount determined in clause (i) with an
interest rate equal to the actual earnings in the Plans on such remainder; and
(iv) adding (a) the amount of the remainder determined pursuant to the
subtraction of clause (ii) from the amount determined in clause (i) and (b) the
amount calculated in accordance with clause (iii) as of the
8th of the month in
which the first payment under this Agreement shall be made (together the “Final
Amount”) and then determining the monthly amount that would be payable under a
net single premium life annuity purchased on that date with the Final Amount,
with an initial payment on the last day of the month in which the first payment
under this Agreement shall be made, which utilizes the method of determining
assumptions present in the 1/1/96 American Mutual Life Insurance Pension Plan
which monthly amount shall be the “Monthly Base Amount.” An illustration of
this calculation in this Section 2 making a number of assumptions, including an
initial payment date of, and a continuation of employment until August 31,
2008, is attached to this Agreement as Exhibit 1.

	3.	 	In the event (a) there is a Change of Control and (b) (i) Mr. Daley’s
employment with AmerUs or any successor thereof is terminated, with such
termination being neither by Mr.

3

 

Daley nor for Cause (as defined in Section 4), and no Comparable Employment (as
defined in Section 4) is offered to Mr. Daley or (ii) Mr. Daley terminates his
employment for Good Reason, then the Retirement Amount shall be calculated as
if Mr. Daley had continued his employment with AmerUs on a full time basis
until August 31st of 2008 with (1) the number of months in Section 2 (A)-(B)
of this Agreement becoming 156 and (2) the average monthly income for each
month from the date of his initial employment until his termination date being
calculated pursuant to Section 2(B)(ii) and the average monthly income for each
month from the date of termination until August 31, 2008 being equal to the
average monthly income for the full fiscal year ended on the
December 31st
prior to his termination calculated for that period pursuant to Section
2(B)(ii), and the Monthly Base Amount being the amount calculated pursuant to
Section 2 which will only include contributions for months he was actively
employed by AmerUs. The monthly payments made pursuant to this Section 3 shall
begin on August 31, 2008 unless Mr. Daley elects under Section 1 to have such
payments begin on his Early Commencement Date, in which case the payments shall
be adjusted in the manner described in the third sentence of Section 1.

     4. The following definitions shall apply to this Agreement.

     “AmerUs Stock Incentive Plan” shall mean collectively the AmerUs Life
Holdings, Inc. Stock Incentive Plan, the AmerUs Group Co. 2000 Stock Incentive
Plan and the AmerUs Group Co. 2003 Stock Incentive Plan, and any similar plans
enacted after the date hereof.

     “Cause” shall mean Mr. Daley’s personal dishonesty, gross negligence,
willful misconduct, breach of fiduciary duty involving personal profit,
intentional failure to perform

4

 

stated duties, willful violation of any law, rule, or regulation (other than
traffic violations or similar offenses) or final cease-and-desist order, or
material breach of any provision of this
Agreement.

     “Change of Control” shall mean any of the following events: (a) any Person
or group (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the
Exchange Act) other than a Subsidiary of AmerUs Group Co. (for purposes of this
definition, “Subsidiary” shall mean each of those Persons of which another
Person, directly or indirectly through one or more Subsidiaries, owns
beneficially securities having more than 25% of the voting power in the
election of directors (or Persons fulfilling similar functions or duties) of
the owned Person (without giving effect to any contingent voting rights)) or
any employee benefit plan (or any related trust) of AmerUs Group Co. or a
Subsidiary of AmerUs Group Co., becomes the beneficial owner (as such term is
defined in Rule 13d-3 of the Exchange Act) of (1) 25% or more of the common
stock of AmerUs Group Co. or (2) securities of AmerUs Group Co. that are
entitled to vote generally in the election of directors of AmerUs Group Co.
(“Voting Securities”) representing 25% or more of the combined voting power of
all Voting Securities of AmerUs Group Co.; (b) the following individuals cease
for any reason to constitute a majority of the number of directors then
serving: individuals who, on the date hereof, constitute the Board of Directors
of AmerUs Group Co. (the “Board”) and any new director (other than a director
whose initial assumption of office is in connection with an actual or
threatened election contest, including but not limited to a consent
solicitation, relating to the election of directors of AmerUs Group Co.) whose
appointment or election by the Board or nomination for election by AmerUs Group
Co.’s

5

 

stockholders was approved or recommended by a vote of at least two-thirds (2/3)
of the directors then still in office who either were directors on the date
hereof or whose appointment, election or nomination for election was previously
so approved or recommended; or (c) there is consummated a merger,
reorganization or consolidation involving AmerUs Group Co. or any direct or
indirect Subsidiary of AmerUs Group Co. and any other corporation or other
entity, other than a merger, reorganization or consolidation which results in
the common stock and Voting Securities of AmerUs Group Co. outstanding
immediately prior to such merger, reorganization or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof) at least 60%,
respectively, of the common stock and combined voting power of the Voting
Securities of AmerUs Group Co. or such surviving entity or any parent thereof
outstanding immediately after such merger, reorganization or consolidation, or
(d) the stockholders of AmerUs Group Co. approve a plan of complete liquidation
or dissolution of AmerUs Group Co. or there is consummated an agreement for the
sale or disposition by AmerUs Group Co. of all or substantially all of AmerUs
Group Co.’s assets.

     “Comparable Employment” shall mean employment with Employer, an Affiliate
thereof or a third party involved in any Change of Control on terms and
conditions which are no less favorable, in the aggregate to the terms and
conditions of employment prevailing with respect to Employee immediately
preceding a Change of Control, provided, however, such an offer of employment
shall not be Comparable Employment if the acceptance of such offer would result
in:

	(1)	 	Assignment of duties or responsibilities that are
substantially inconsistent with

6

 

	 	 	Employee’s position, duties, responsibility or status with
Employer immediately prior to the Change of Control or a
substantial reduction of Employee’s duties or responsibilities
as compared with Employee’s duties and responsibilities
immediately prior to the Change of Control including; without
limitation, Employee ceasing to be an executive officer, as that
term is used pursuant to Regulation §229.401 of Regulation S-K
under the Securities Act of 1933, the Securities Act of 1934 and
the Energy Policy and Conservation Act of 1975, of a public
company;
	 
	(2)	 	A reduction in the amount of Employee’s Base
Compensation, a material reduction in Employee’s annual incentive
compensation opportunity or long term incentive compensation
opportunity (including an adverse change in performance criteria
or a decrease in the target amount of annual or long term
incentive compensation) or a material reduction in any other
employee perquisites to which Employee is entitled, from that in
effect immediately prior to the Change of Control, or
	 
	(3)	 	A relocation of Employee’s principal office to a
location more than thirty-five (35) miles from the location of
such office immediately prior to the Change of Control.

     “Early Commencement Date” shall mean the last day of the month in which
Mr. Daley elects to have monthly payments begin pursuant to the second sentence
of Section 1.

     “Good Reason” shall mean the occurrence of both (i) a Change of Control
without Employee

7

 

being offered Comparable Employment and (ii) a Material Event.

     “Material Event” shall mean the occurrence of any one of the following
events without Employee’s express written consent:

	(1)	 	The assignment to Employee of duties substantially
inconsistent with Employee’s position, duties, responsibility or
status with Employer or a substantial reduction of Employee’s
duties or responsibilities, as compared with Employee’s duties or
responsibilities prior to such reduction, or any removal of
Employee from, or any failure to re-elect Employee to, the
position Employee held at the time of such removal or failure to
re-elect, except in connection with termination of employment for
Cause including, without limitation, Employee ceasing to be an
executive officer, as that term is used pursuant to Regulation
§229.401 of Regulation S-K under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Energy Policy and
Conservation Act of 1975, of a public company; or
	 
	(2)	 	A reduction in the amount of Employee’s Base
Compensation, a material reduction in payments received by
Employee under any bonus or incentive plans in which Employee
participates or a material reduction in any other employee
perquisites to which Employee is entitled; or
	 
	(3)	 	The relocation of Employee’s principal office to a
location more than thirty-five (35) miles from the location of
such office immediately prior to such relocation; or

8

 

	(4)	 	Any material breach of Employer of any of the
provisions of this Agreement.

     “Transaction” shall mean any merger, consolidation, tender or exchange
offer, dissolution, liquidation, sale or exchange of stock, business
combination, sale or exchange of all or substantially all assets,
demutualization or other similar transaction or combination of the foregoing by
or between persons who were not under common control prior to the transaction.

     5. This Agreement does not constitute an agreement of employment or the
promise to employ Mr. Daley for any specified period of time. It continues to
be the understanding between AmerUs and Mr. Daley that Mr. Daley is and will
continue to be an employee at will.

     6. This Agreement may not be amended or modified in any way except in a
writing signed by both parties.

     7. This Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the parties.

     8. AmerUs and Mr. Daley designate the AmerUs Benefit and Pension
Committee, as appointed by the Board of Directors, to administer and interpret
this Agreement with all
necessary discretion. The determinations of the AmerUs Benefit and Pension
Committee shall be binding on the parties hereto.

     9. This Agreement constitutes the entire agreement of the parties with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, written and oral, among the parties with respect to the subject
matter hereof including the agreements of June 27, 1997 and March 14, 2000.

9

 

     Executed
as of the 22nd day of August, 2003.

	 	 	 	 	 
	 	 	
AmerUs Group Co.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Roger K. Brooks

	

	 	 	 	Roger K. Brooks
	 
	 	 	 	 
	

	 	 	 	/s/ Victor N. Daley

	

	 	 	 	Victor N. Daley

10exv10w1

 

EXHIBIT 10.1

CREDIT AGREEMENT

among

TRIZEC PROPERTIES, INC. and

TRIZEC HOLDINGS, INC.,

as BORROWERS,

VARIOUS LENDERS, and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as ADMINISTRATIVE AGENT

Dated as of June 29, 2004

DEUTSCHE BANK SECURITIES INC. and

BANC OF AMERICA SECURITIES LLC,

as CO-LEAD ARRANGERS and JOINT BOOK RUNNING MANAGERS,

BANK OF AMERICA, N.A.,

as SYNDICATION AGENT,

THE BANK OF NOVA SCOTIA, BANK OF MONTREAL and

JPMORGAN CHASE BANK,

as CO-DOCUMENTATION AGENTS,

and

ING REAL ESTATE FINANCE (USA) LLC,

AS SENIOR MANAGING AGENT,

and

WELLS FARGO BANK, N.A.,

KEY BANK NATIONAL ASSOCIATION,

COMMERZBANK AG NEW YORK AND GRAND CAYMAN BRANCHES,

EUROHYPO AG, NEW YORK BRANCH,

LASALLE BANK NATIONAL ASSOCIATION,

US BANK NATIONAL ASSOCIATION,

WACHOVIA BANK, NATIONAL ASSOCIATION and

NATIONAL AUSTRALIA BANK LIMITED,

as MANAGING AGENTS

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	SECTION 1. Amount and Terms of Credit
	 	 	1	 
	1.01 Commitments to Extend Loans
	 	 	1	 
	1.02 Minimum Amount of Each Borrowing
	 	 	5	 
	1.03 Notice of Borrowing
	 	 	5	 
	1.04 Competitive Bid Borrowings
	 	 	6	 
	1.05 Disbursement of Funds
	 	 	9	 
	1.06 Notes
	 	 	9	 
	1.07 Conversions
	 	 	11	 
	1.08 Pro Rata Borrowings
	 	 	12	 
	1.09 Interest
	 	 	12	 
	1.10 Interest Periods
	 	 	13	 
	1.11
Increased Costs, Illegality, etc.
	 	 	14	 
	1.12 Compensation
	 	 	16	 
	1.13 Lending Offices
	 	 	17	 
	1.14 Requested Designation of other Lending Offices
	 	 	17	 
	1.15 Replacement of Lenders
	 	 	17	 
	1.16 Additional Commitments
	 	 	18	 
	1.17 Maturity Date Extension
	 	 	20	 
	SECTION 2. Letters of Credit
	 	 	20	 
	2.01 Letters of Credit
	 	 	20	 
	2.02 Maximum Letter of Credit Outstandings; Final Maturities
	 	 	21	 
	2.03 Letter of Credit Requests; Minimum Stated Amount
	 	 	22	 
	2.04 Letter of Credit Participations
	 	 	23	 
	2.05 Agreement to Repay Letter of Credit Drawings
	 	 	24	 
	2.06 Increased Costs
	 	 	25	 
	SECTION 3. Commitment Commissions; Other Fees; Reductions of Commitments
	 	 	26	 
	3.01 Fees
	 	 	26	 
	3.02 Voluntary Termination of Unutilized Commitments
	 	 	28	 
	3.03 Mandatory Reduction of Commitments
	 	 	29	 
	SECTION 4. Prepayments; Payments; Taxes
	 	 	29	 
	4.01 Voluntary Prepayments
	 	 	29	 
	4.02 Mandatory Repayments
	 	 	30	 
	4.03 Method and Place of Payment
	 	 	32	 
	4.04 Net Payments
	 	 	32	 
	SECTION 5. Conditions Precedent to the Effective Date
	 	 	34	 
	5.01 Execution of Agreement; Notes
	 	 	34	 
	5.02 Opinion of Counsel
	 	 	34	 

(i)

 

	 	 	 	 	 
	 	 	Page

	5.03
Corporate Documents; Proceedings; etc.
	 	 	35	 
	5.04 Adverse Change, etc.
	 	 	35	 
	5.05 Litigation
	 	 	35	 
	5.06 Financial Statements
	 	 	35	 
	5.07 Subsidiaries Guaranty
	 	 	36	 
	5.08 Solvency Certificate
	 	 	36	 
	5.09 Initial Borrowing Base Certificate
	 	 	36	 
	5.10 Subordination Agreement
	 	 	36	 
	5.11 Fees
etc.
	 	 	36	 
	5.12 Refinancing
	 	 	36	 
	SECTION 6. Conditions Precedent to All Credit Events
	 	 	36	 
	6.01 Effective Date
	 	 	37	 
	6.02 No Default; Representations and Warranties
	 	 	37	 
	6.03 Notice of Borrowing; Letter of Credit Request
	 	 	37	 
	6.04 Change of Control
	 	 	37	 
	SECTION 7. Representations, Warranties and Agreements
	 	 	38	 
	7.01 Company and Other Status
	 	 	38	 
	7.02 Company Power and Authority
	 	 	38	 
	7.03 No Violation
	 	 	38	 
	7.04 Governmental Approvals
	 	 	39	 
	7.05 Financial Statements; Financial Condition; Undisclosed Liabilities;
Projections; etc.
	 	 	39	 
	7.06 Litigation
	 	 	40	 
	7.07 True and Complete Disclosure
	 	 	40	 
	7.08 Use of Proceeds; Margin Regulations
	 	 	40	 
	7.09 Tax Returns and Payments
	 	 	41	 
	7.10 Subsidiaries
	 	 	41	 
	7.11 Compliance with Applicable Laws
	 	 	41	 
	7.12 Investment Company Act
	 	 	41	 
	7.13 Public Utility Holding Company Act
	 	 	41	 
	7.14 Status as a REIT
	 	 	41	 
	7.15 Compliance with ERISA
	 	 	42	 
	7.16 Environmental Compliance
	 	 	43	 
	7.17 Patents, Trademarks, etc.
	 	 	44	 
	7.18 No Default
	 	 	44	 
	7.19
Licenses, etc.
	 	 	44	 
	7.20 No Burdensome Restrictions
	 	 	44	 
	7.21 Labor Matters
	 	 	44	 
	7.22 Insurance
	 	 	45	 
	7.23 Capitalization
	 	 	45	 
	7.24 Properties
	 	 	45	 

(ii)

 

	 	 	 	 	 
	 	 	Page

	SECTION 8. Affirmative Covenants
	 	 	46	 
	8.01 Information Covenants
	 	 	46	 
	8.02 Books, Records, Inspections and Annual Meetings
	 	 	51	 
	8.03 Maintenance of Property; Insurance; Casualty and Condemnation;
Restoration; and Renovations
	 	 	51	 
	8.04 Ownership of Real Estate Assets; Additional Borrower; Subsidiary
Guarantors
	 	 	52	 
	8.05 Compliance with Applicable Laws and Authorizations
	 	 	52	 
	8.06 Company
Existence and Franchises, etc.
	 	 	52	 
	8.07 Performance of Obligations
	 	 	52	 
	8.08 Payment of Taxes
	 	 	53	 
	8.09 Use of Proceeds
	 	 	53	 
	8.10 End of Fiscal Years; Fiscal Quarters
	 	 	53	 
	8.11 Interest Rate Protection
	 	 	53	 
	8.12 REIT Requirements
	 	 	53	 
	8.13 Addition and Release of Borrowing Base Properties and Subsidiary
Guarantors
	 	 	53	 
	SECTION 9. Negative Covenants
	 	 	56	 
	9.01 Liens
	 	 	56	 
	9.02
Consolidation, Merger, Sale of Assets, etc.
	 	 	58	 
	9.03 Dividends
	 	 	59	 
	9.04 Indebtedness
	 	 	60	 
	9.05 Limitation on Modifications of Certificate of Incorporation, By-Laws and
Certain Other Agreements; etc.
	 	 	60	 
	9.06 Investments
	 	 	61	 
	9.07
Negative Pledge Clauses; etc.
	 	 	61	 
	9.08 Transactions with Affiliates
	 	 	62	 
	9.09 Management Agreements
	 	 	62	 
	9.10 Consolidated Total Indebtedness as a Percentage of Consolidated Total
Asset Value
	 	 	63	 
	9.11 Consolidated Net Worth
	 	 	63	 
	9.12 Consolidated Interest Coverage Ratio
	 	 	63	 
	9.13 Consolidated Fixed Charge Coverage Ratio
	 	 	63	 
	9.14 Borrowing Base Property Coverage Ratio
	 	 	63	 
	9.15 Limitation on Certain Restrictions on Subsidiaries
	 	 	63	 
	9.16 Affiliate Debt and Subordination Agreement
	 	 	64	 
	SECTION 10. Events of Default
	 	 	64	 
	10.01 Payments
	 	 	64	 
	10.02 Representations, etc.
	 	 	64	 
	10.03 Covenants
	 	 	64	 
	10.04 Default Under Other Agreements
	 	 	65	 
	10.05 Bankruptcy, etc.
	 	 	65	 
	10.06 Judgments
	 	 	65	 

(iii)

 

	 	 	 	 	 
	 	 	Page

	10.07 ERISA
	 	 	66	 
	10.08
Guaranties, etc.
	 	 	66	 
	10.09 Change of Control
	 	 	66	 
	10.10 Stock Exchange Listing
	 	 	67	 
	SECTION 11. Definitions
	 	 	67	 
	11.01 Defined Terms
	 	 	67	 
	SECTION 12. The Administrative Agent
	 	 	102	 
	12.01 Appointment
	 	 	102	 
	12.02 Nature of Duties
	 	 	103	 
	12.03 Lack of Reliance on the Administrative Agent
	 	 	103	 
	12.04 Certain Rights of the Administrative Agent
	 	 	103	 
	12.05 Reliance
	 	 	104	 
	12.06 Indemnification
	 	 	104	 
	12.07 The Administrative Agent in its Individual Capacity
	 	 	104	 
	12.08 Holders
	 	 	104	 
	12.09 Resignation by the Administrative Agent; Removal of the Administrative
Agent
	 	 	105	 
	SECTION 13. Miscellaneous.
	 	 	105	 
	13.01 Payment of Expenses, etc.
	 	 	105	 
	13.02 Right of Setoff
	 	 	107	 
	13.03 Notices
	 	 	107	 
	13.04 Benefit of Agreement; Assignments; Participations
	 	 	108	 
	13.05 No Waiver; Remedies Cumulative
	 	 	110	 
	13.06 Payments Pro Rata
	 	 	111	 
	13.07 Calculations; Computations
	 	 	111	 
	13.08 Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial
	 	 	112	 
	13.09 Counterparts
	 	 	113	 
	13.10 Effectiveness
	 	 	113	 
	13.11 Headings Descriptive
	 	 	113	 
	13.12
Amendment or Waiver; etc.
	 	 	114	 
	13.13 Survival
	 	 	115	 
	13.14 Domicile of Loans
	 	 	115	 
	13.15 Register
	 	 	115	 
	13.16 Confidentiality
	 	 	116	 
	13.17 Limitation on Additional Amounts, etc.
	 	 	116	 
	13.18 No Third Party Beneficiary
	 	 	117	 
	13.19 Waiver of Sovereign Immunity
	 	 	117	 
	13.20 Judgment Currency
	 	 	117	 
	13.21 Maximum Rate
	 	 	118	 
	13.22 Nature of Obligations
	 	 	118	 
	13.23 USA Patriot Act
	 	 	120	 

(iv)

 

	 	 	 
	SCHEDULE I

	 	Commitments
	 
	 	 
	SCHEDULE II

	 	Lender Addresses and Applicable Lending Offices
	 
	 	 
	SCHEDULE III

	 	Initial Borrowing Base Properties
	 
	 	 
	SCHEDULE 2.01(c)

	 	Existing Letters of Credit
	 
	 	 
	SCHEDULE 7.10

	 	Subsidiaries; Subsidiary Guarantors
	 
	 	 
	SCHEDULE 7.22

	 	Insurance
	 
	 	 
	EXHIBIT A

	 	Form of Notice of Borrowing
	 
	 	 
	EXHIBIT B

	 	Form of Notice of Competitive Bid Borrowing
	 
	 	 
	EXHIBIT C-1

	 	Form of Revolving Loan Note
	 
	 	 
	EXHIBIT C-2

	 	Form of Term Loan Note
	 
	 	 
	EXHIBIT C-3

	 	Form of Swingline Loan Note
	 
	 	 
	EXHIBIT D

	 	Form of Joinder Agreement
	 
	 	 
	EXHIBIT E

	 	Form of Notice of Conversion/Continuation
	 
	 	 
	EXHIBIT F

	 	Form of Letter of Credit Request
	 
	 	 
	EXHIBIT G

	 	Form of Section 4.04(b)(ii) Certificate
	 
	 	 
	EXHIBIT H

	 	Form of Opinion of Piper Rudnick LLP, counsel to the Credit Parties
	 
	 	 
	EXHIBIT I

	 	Form of Officer’s Certificate
	 
	 	 
	EXHIBIT J

	 	Form of Subsidiaries Guaranty
	 
	 	 
	EXHIBIT K

	 	Form of Solvency Certificate
	 
	 	 
	EXHIBIT L

	 	Form of Affiliate Debt and Subordination Agreement
	 
	 	 
	EXHIBIT M

	 	Form of Borrowing Base Certificate
	 
	 	 
	EXHIBIT N

	 	Form of Additional Commitment Agreement
	 
	 	 
	EXHIBIT O

	 	Form of Assignment and Assumption Agreement
	 
	 	 
	EXHIBIT P

	 	Form of Compliance Certificate

(v)

 

 

          CREDIT AGREEMENT, dated as of June 29, 2004, among TRIZEC PROPERTIES,
INC., a Delaware corporation (“Trizec”), TRIZEC HOLDINGS, INC., a Delaware
corporation (“Holdings”), the Lenders party hereto from time to time, and
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Administrative Agent (in such
capacity, the “Administrative Agent”) (all capitalized terms used herein and
defined in Section 11 are used herein as therein defined).

W I T N E S S E T H:

          WHEREAS, subject to and on the terms and conditions set forth herein, the
Lenders are willing to make available to the Borrowers on a joint and several
basis the credit facilities provided for herein;

          NOW, THEREFORE, IT IS AGREED:

          SECTION 1. Amount and Terms of Credit.

          1.01 Commitments to Extend Loans. (a) Subject to and upon the terms and
conditions set forth herein, each Lender with a Term Loan Commitment severally
agrees to make, at any time and from time to time on and after the Effective
Date and prior to the Term Loan Commitment Expiration Date, a term loan or term
loans (each, a “Term Loan” and, collectively, the “Term Loans”) to the
Borrowers, which Term Loans (i) shall be made and maintained in Dollars, (ii)
shall, at the option of the Borrowers, be incurred and maintained as, and/or
converted into, Base Rate Loans or Eurodollar Rate Loans, provided, that,
except as otherwise as specifically provided in Section 1.11(b), all Term Loans
comprising the same Borrowing shall at all times be of the same Type, (iii)
shall not exceed for any Lender at any time outstanding, that aggregate
principal amount which, when added to the sum of the aggregate principal amount
of all other Term Loans made by such Lender and then outstanding, equals the
Term Loan Commitment of such Lender at such time, and (iv) shall not exceed for
all of the Lenders at any time outstanding either (x) that aggregate principal
amount which, when added to the sum of (I) the aggregate principal amount of
all other Term Loans then outstanding, (II) the aggregate principal amount of
all Revolving Loans then outstanding, (III) the aggregate amount of all Letter
of Credit Outstandings (exclusive of Unpaid Drawings which are repaid with the
proceeds of, and simultaneously with the incurrence of Term Loans and/or
Revolving Loans) at such time, (IV) the aggregate principal amount of all
Competitive Bid Loans (exclusive of Competitive Bid Loans which are repaid with
the proceeds of, and simultaneously with the incurrence of, Term Loans and/or
Revolving Loans) then outstanding, (V) the aggregate principal amount of all
Swingline Loans (exclusive of Swingline Loans which are repaid with the
proceeds of, and simultaneously with the incurrence of, Term Loans and/or
Revolving Loans) then outstanding and (VI) the aggregate principal amount of
all other Unsecured Consolidated Total Indebtedness of Trizec then outstanding,
equals the Borrowing Base Amount at such time (based on the Borrowing Base
Certificate last delivered or then being delivered) or (y) that aggregate
principal amount which, when added to the sum of the aggregate principal amount
of all other Term Loans then outstanding, equals the Total Term Loan Commitment
at such time.

 

 

          (b) Subject to and upon the terms and conditions set forth herein, each
Lender with a Revolving Loan Commitment severally agrees to make, at any time
and from time to time on and after the Effective Date and prior to the Maturity
Date, a revolving loan or revolving loans (each a “Revolving Loan” and,
collectively, the “Revolving Loans”) to the Borrowers, which Revolving Loans
(i) shall be made and maintained in Dollars, (ii) shall, at the option of the
Borrowers, be incurred and maintained as, and/or converted into, Base Rate
Loans or Eurodollar Rate Loans, provided that, except as otherwise specifically
provided in Section 1.11 (b), all Revolving
Loans comprising the same Borrowing shall at all times be of the same
Type, (iii) may be repaid and reborrowed in accordance with the provisions
hereof, (iv) shall not exceed for any Lender at any time outstanding that
aggregate principal amount which, when added to the sum of (x) the aggregate
principal amount of all other Revolving Loans made by such Lender and then
outstanding and (y) the product of (A) such Lender’s Percentage and (B) the sum
of (1) the aggregate amount of all Letter of Credit Outstandings (exclusive of
Unpaid Drawings which are repaid with the proceeds of, and simultaneously with
the incurrence of, Term Loans and/or Revolving Loans) at such time and (2) the
aggregate principal amount of all Swingline Loans (exclusive of Swingline Loans
which are repaid with the proceeds of, and simultaneously with the incurrence
of, Term Loans and/or Revolving Loans) then outstanding, equals the Revolving
Loan Commitment of such Lender at such time, and (v) shall not exceed for all
of the Lenders at any time outstanding either (x) that aggregate principal
amount which, when added to the sum of (I) the aggregate principal amount of
all Term Loans then outstanding, (II) the aggregate principal amount of all
other Revolving Loans then outstanding, (III) the aggregate amount of all
Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid
with the proceeds of, and simultaneously with the incurrence of, Term Loans
and/or Revolving Loans) at such time, (IV) the aggregate principal amount of
all Competitive Bid Loans (exclusive of Competitive Bid Loans which are repaid
with the proceeds of, and simultaneously with the incurrence of, Term Loans
and/or Revolving Loans), (V) the aggregate principal amount of all Swingline
Loans (exclusive of Swingline Loans which are repaid with the proceeds of, and
simultaneously with the incurrence of, Term Loans and/or Revolving Loans) then
outstanding and (VI) the aggregate principal amount of all other Unsecured
Consolidated Total Indebtedness of Trizec then outstanding, equals the
Borrowing Base Amount at such time (based on the Borrowing Base Certificate
last delivered or then being delivered) or (y) that aggregate principal amount
which, when added to the sum of (I) the aggregate amount of all Letter of
Credit Outstandings (exclusive of Unpaid Drawings which are repaid with the
proceeds of, and simultaneously with the incurrence of, Term Loans and/or
Revolving Loans) at such time and (II) the aggregate principal amount of all
Competitive Bid Loans (exclusive of Competitive Bid Loans which are paid with
the proceeds of, and simultaneously with the incurrence of, Term Loans and/or
Revolving Loans) then outstanding and (III) the aggregate principal amount of
all Swingline Loans (exclusive of Swingline Loans which are paid with the
proceeds of, and simultaneously with the incurrence of, Term Loans and/or
Revolving Loans) then outstanding, equals the Total Revolving Loan Commitment
at such time.

          (c) Subject to and upon the terms and conditions set forth herein, the
Swingline Lender agrees to make, at any time and from time to time on and after
the Effective Date and prior to the Swingline Expiry Date, a revolving loan or
revolving loans (each a “Swingline Loan” and, collectively, the “Swingline
Loans”) to the Borrowers, which Swingline Loans (i) shall be made and
maintained in Dollars and as Base Rate Loans, (ii) may be repaid and reborrowed
in accordance with the provisions hereof, (iii) shall not exceed at any time

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outstanding either (x) that aggregate principal amount which, when added to the
sum of (I) the aggregate principal amount of all Term Loans then outstanding,
(II) the aggregate
principal amount of all Revolving Loans then outstanding, (III) the
aggregate amount of all Letter of Credit Outstandings (exclusive of Unpaid
Drawings which are repaid with the proceeds of, and simultaneously with the
incurrence of, Swingline Loans) at such time, (IV) the aggregate principal
amount of all Competitive Bid Loans (exclusive of Competitive Bid Loans which
are repaid with the proceeds of, and simultaneously with the incurrence of,
Swingline Loans), and (V) the aggregate principal amount of all other Unsecured
Consolidated Total Indebtedness of Trizec then outstanding, equals the
Borrowing Base Amount at such time (based on the Borrowing Base Certificate
last delivered or then being delivered) or (y) that aggregate principal amount
which, when added to the sum of (I) the aggregate amount of all Letter of
Credit Outstandings (exclusive of Unpaid Drawings which are repaid with the
proceeds of, and simultaneously with the incurrence of, Swingline Loans) at
such time, (II) the aggregate principal amount of all Revolving Loans then
outstanding and (III) the aggregate principal amount of all Competition Bid
Loans (exclusive of Competitive Bid Loans which are repaid with the proceeds
of, and simultaneously with the incurrence of, Swingline Loans) then
outstanding, equals the Total Revolving Loan Commitment at such time, and (iv)
shall not exceed in aggregate principal amount at any time outstanding the
Maximum Swingline Amount. Notwithstanding anything to the contrary contained in
this Section 1.01(c), (x) the Swingline Lender shall not be obligated to make
any Swingline Loans at a time when a Lender Default exists unless the Swingline
Lender has entered into arrangements satisfactory to it and the Borrowers to
eliminate the Swingline Lender’s risk with respect to the Defaulting Lender’s
or Lenders’ participation in such Swingline Loans, including by cash
collateralizing such Defaulting Lender’s or Lenders’ Percentage of the
outstanding Swingline Loans and (y) the Swingline Lender shall not make any
Swingline Loan after it has received written notice from the Borrowers or the
Required Lenders stating that a Default or an Event of Default exists and is
continuing until such time as the Swingline Lender shall have received written
notice (I) of rescission of all such notices from the party or parties
originally delivering such notice or (II) of the waiver of such Default or
Event of Default by the Required Lenders.

          (d) On any Business Day, the Swingline Lender may, in its sole discretion,
give notice to the Lenders that the Swingline Lender’s outstanding Swingline
Loans shall be funded with one or more Borrowings of Revolving Loans (provided
that such notice shall be deemed to have been automatically given upon the
occurrence of a Default or an Event of Default under Section 10.05 or upon the
exercise of any of the remedies provided in the last paragraph of Section 10),
in which case one or more Borrowings of Revolving Loans constituting Base Rate
Loans (each such Borrowing, a “Mandatory Borrowing”) shall be made on the
immediately succeeding Business Day by all Lenders with Revolving Loan
Commitments pro rata based on each such Lender’s Percentage (determined before
giving effect to any termination of the Commitments pursuant to the last
paragraph of Section 10) and the proceeds thereof shall be applied directly by
the Swingline Lender to repay the Swingline Lender for such outstanding
Swingline Loans (although, unless a Default or an Event of Default then exists,
the Swingline Lender will not exercise such right with respect to any
outstanding Swingline Loans prior to the fourth Business Day after the date
that such Swingline Loan was made or if the Administrative Agent has
theretofore received a Notice of Borrowing or a Notice
of Competitive Bid Borrowing the proceeds of which Borrowing will be used
to repay such outstanding Swingline Loans on or prior to the date on which such
Swingline Loans are due). Each Lender

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hereby irrevocably agrees to make Revolving Loans upon one Business Day’s
notice pursuant to each Mandatory Borrowing in the amount and in the manner
specified in the preceding sentence and on the date specified in writing by the
Swingline Lender notwithstanding (i) the amount of the Mandatory Borrowing may
not comply with the Minimum Borrowing Amount otherwise required hereunder, (ii)
whether any conditions specified in Section 6 are then satisfied, (iii) whether
a Default or an Event of Default then exists, (iv) the date of such Mandatory
Borrowing and (v) the amount of the Total Commitment or Borrowing Base Amount
at such time. In the event that any Mandatory Borrowing cannot for any reason
be made on the date otherwise required above (including, without limitation, as
a result of the commencement of a proceeding under the Bankruptcy Code with
respect to any of the Borrowers), then each Lender hereby agrees that it shall
forthwith purchase (as of the date the Mandatory Borrowing would otherwise have
occurred, but adjusted for any payments received from the Borrowers on or after
such date and prior to such purchase) from the Swingline Lender such
participations in the outstanding Swingline Loans as shall be necessary to
cause the Lenders to share in such Swingline Loans ratably based upon their
respective Percentages (determined before giving effect to any termination of
the Commitments pursuant to the last paragraph of Section 10), provided that
(x) all interest payable on the Swingline Loans shall be for the account of the
Swingline Lender until the date as of which the respective participation is
required to be purchased and, to the extent attributable to the purchased
participation, shall be payable to the participant from and after such date and
(y) at the time any purchase of participations pursuant to this sentence is
actually made, the purchasing Lender shall be required to pay the Swingline
Lender interest on the principal amount of the participation so purchased for
each day from and including the day upon which the Mandatory Borrowing would
otherwise have occurred to but excluding the date of payment for such
participation, at the overnight Federal Funds Rate for the first three days and
at the rate otherwise applicable to Revolving Loans maintained as Base Rate
Loans hereunder for each day thereafter.

          (e) Subject to and upon the terms and conditions set forth herein, each
Lender severally agrees that the Borrowers may, in accordance with the
procedures established pursuant to Section 1.04, incur one or more loans (each
a “Competitive Bid Loan” and, collectively, the “Competitive Bid Loans”),
denominated in Dollars, pursuant to a Competitive Bid Borrowing at any time and
from time to time on and after the Effective Date and prior to the date which
is the Business Day preceding the date which is 45 days prior to the Maturity
Date, provided that (x) no Competitive Bid Loan may be made unless the
Investment Grade Rating Condition exists, (y) no Competitive Bid Loan may be
made if, after giving effect thereto, either (A) the sum of (I) the aggregate
principal amount of all Term Loans then outstanding, (II) the aggregate
principal amount of all Revolving Loans (exclusive of Revolving Loans which are
repaid with the proceeds of, and simultaneously with the incurrence of,
Competitive Bid Loans) then outstanding, (III) the aggregate amount of all
Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid
with the proceeds of, and simultaneously with the incurrence
of, Competitive Bid Loans) at such time, (IV) the aggregate principal
amount of all Competitive Bid Loans (exclusive of Competitive Bid Loans which
are repaid with the proceeds of, and simultaneously with the incurrence of
Competitive Bid Loans) then outstanding, (V) the aggregate principal amount of
all Swingline Loans (exclusive of Swingline Loans which are repaid with the
proceeds of, and simultaneously with the incurrence of, Competitive Bid Loans)
then outstanding, and (VI) the aggregate principal amount of all other
Unsecured Consolidated Total Indebtedness of the Borrowers then outstanding,
exceeds the Borrowing Base Amount at

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such time (based on the Borrowing Base
Certificate last delivered or then being delivered) or (B) the sum of (I) the
aggregate principal amount of all Competitive Bid Loans (exclusive of
Competitive Bid Loans which are repaid with the proceeds of, and simultaneously
with the incurrence of Competitive Bid Loans) then outstanding, (II) the
aggregate amount of all Letter of Credit Outstandings (exclusive of Unpaid
Drawings which are repaid with the proceeds of, and simultaneously with the
incurrence of, Competitive Bid Loans) at such time, (III) the aggregate
principal amount of all Revolving Loans (exclusive of Revolving Loans which are
repaid with the proceeds of, and simultaneously with the incurrence of,
Competitive Bid Loans) then outstanding and (IV) the aggregate principal amount
of all Swingline Loans (exclusive of Swingline Loans which are paid with the
proceeds of, and simultaneously with the incurrence of, Competitive Bid Loans)
then outstanding exceeds the Total Revolving Loan Commitment at such time and
(z) no Competitive Bid Loan may be made if, after giving effect thereto, the
aggregate principal amount of all Competitive Bid Loans then outstanding
exceeds the Maximum Competitive Bid Loan Amount. Within the foregoing limits
and subject to the terms and conditions set forth in Sections 1.04 and 1.06,
Competitive Bid Loans may be repaid and reborrowed in accordance with the
provisions hereof.

          1.02 Minimum Amount of Each Borrowing. The aggregate principal amount of
each Borrowing of Term Loans, Revolving Loans, Competitive Bid Loans and
Swingline Loans shall not be less than the Minimum Borrowing Amount applicable
thereto. More than one Borrowing may occur on the same date, but at no time
shall there be outstanding more than eight Borrowings of Eurodollar Rate Loans
in the aggregate (or such greater number as may be acceptable to the
Administrative Agent).

          1.03 Notice of Borrowing. (a) Whenever the Borrowers desire to incur
Term Loans or Revolving Loans hereunder, they shall give the Administrative
Agent at the Notice Office at least one Business Day’s prior written notice (or
telephonic notice promptly confirmed in writing) of each Base Rate Loan and at
least three Business Days’ prior written notice (or telephonic notice promptly
confirmed in writing) of each Eurodollar Rate Loan to be incurred hereunder,
provided that any such notice shall be deemed to have been given on a certain
day only if given before 12:00 Noon (New York time) on such day. Each such
written notice or written confirmation of telephonic notice (each, a “Notice of
Borrowing”), except as otherwise expressly provided in Section 1.11, shall be
irrevocable and shall be given by the Borrowers in the form of Exhibit A,
appropriately completed to specify (i) the aggregate principal amount of the
Term Loans and/or Revolving Loans to be incurred pursuant to such Borrowing,
(ii) the date of such
Borrowing (which shall be a Business Day), (iii) whether such Term Loans
and/or Revolving Loans are to be incurred as Base Rate Loans or Eurodollar Rate
Loans and, if Eurodollar Rate Loans, the initial Interest Period to be
applicable thereto, (iv) the Borrowing Base Amount at such time (based on the
Borrowing Base Certificate last delivered or then being delivered) and (v) the
sum of (I) the aggregate principal amount of all Loans outstanding at such time
(after giving effect to the proposed Borrowing), (II) the aggregate amount of
all Letter of Credit Outstandings at such time and (III) the aggregate
principal amount of all other Unsecured Consolidated Total Indebtedness of the
Borrowers at such time (after giving effect to the proposed Borrowing and the
application of the proceeds therefrom). The Administrative Agent shall promptly
give each Lender with a Commitment of the applicable Tranche notice of such
proposed Borrowing, of such Lender’s proportionate share thereof and of the
other matters required by the immediately preceding sentence to be specified in
the Notice of Borrowing.

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          (b) (i) Whenever the Borrowers desire to incur Swingline Loans hereunder,
the Borrowers shall give the Swingline Lender no later than 1:00 P.M. (New York
time) on the date that a Swingline Loan is to be incurred hereunder, written
notice or telephonic notice promptly confirmed in writing of each Swingline
Loan to be incurred hereunder. Each such notice shall be in the form of a
Notice of Borrowing (appropriately completed) and shall be irrevocable and
specify in each case (A) the date of Borrowing (which shall be a Business Day),
(B) the aggregate principal amount of the Swingline Loans to be incurred
pursuant to such Borrowing, (C) the Borrowing Base Amount at such time (based
on the Borrowing Base Certificate last delivered or then being delivered) and
(D) the sum of (I) the aggregate principal amount of all Loans outstanding at
such time (after giving effect to the proposed Borrowing), (II) the aggregate
amount of all Letter of Credit Outstandings at such time and (III) the
aggregate principal amount of all other Unsecured Consolidated Total
Indebtedness of the Borrowers at such time (after giving effect to the proposed
Borrowing and the application of the proceeds therefrom).

          (ii) Mandatory Borrowings shall be made upon the notice specified in
Section 1.01(d), with the Borrowers irrevocably agreeing, by their incurrence
of any Swingline Loan, to the making of the Mandatory Borrowings as set forth
in Section 1.01(d).

          (c) Without in any way limiting the obligation of the Borrowers to confirm
in writing any telephonic notice permitted to be given hereunder of any
Borrowing or prepayment of Loans or any revocation of any Letter of Credit
Request, the Administrative Agent, the Swingline Lender or the applicable
Issuing Lender, as the case may be, may act without liability upon the basis of
telephonic notice of Borrowing, prepayment or revocation, as the case may be,
believed by the Administrative Agent, the Swingline Lender or the applicable
Issuing Lender, as the case may be, in good faith to be from the chairman of
the board, the chief executive officer, the president or a Senior Financial
Officer of any of the Borrowers, or from any other authorized officer of any of
the Borrowers designated in writing by any of the foregoing officers of any of
the Borrowers to the Administrative Agent as being authorized to give such
notices, prior to receipt of written confirmation. In each such case, each of
the Borrowers hereby waives the right to dispute the Administrative Agent’s,
the Swingline Lender’s or the applicable
Issuing Lender’s record of the terms of such telephonic notice of such
Borrowing or prepayment of Loans or such revocation of a Letter of Credit
Request, as the case may be, absent manifest error.

          1.04 Competitive Bid Borrowings. (a) Whenever the Borrowers desire to
incur a Competitive Bid Borrowing, they shall deliver to the Administrative
Agent at the Notice Office prior to 12:00 Noon (New York time), (x) at least
four Business Days prior to the date of such proposed Competitive Bid
Borrowing, in the case of a Spread Competitive Bid Borrowing, and (y) at least
three Business Days prior to the date of such proposed Competitive Bid
Borrowing, in the case of an Absolute Rate Competitive Bid Borrowing, a written
notice substantially in the form of Exhibit B (each a “Notice of Competitive
Bid Borrowing”), such notice to specify in each case (i) the date of the
proposed Competitive Bid Borrowing (which shall be a Business Day), (ii) the
aggregate principal amount of the proposed Competitive Bid Borrowing, (iii) the
maturity date or maturity dates (each a “Competitive Bid Loan Maturity Date”)
for repayment of each Competitive Bid Loan to be made as part of such
Competitive Bid Borrowing (each of which maturity dates may not be earlier than
14 days after the date of such Competitive Bid Borrowing or later than 180 days
after the date of such Competitive Bid Borrowing (but in no

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event later than
the Maturity Date)), (iv) the interest payment date or dates relating thereto
(which shall be at least every three months in the case of maturities in excess
of three months), (v) whether the proposed Competitive Bid Borrowing is to be
an Absolute Rate Competitive Bid Borrowing or a Spread Competitive Bid
Borrowing, (vi) the Borrowing Base Amount at such time (based on the Borrowing
Base Certificate last delivered or then being delivered), (vii) the sum of (I)
the aggregate principal amount of all Loans outstanding at such time (after
giving effect to the proposed Competitive Bid Borrowing), (II) the aggregate
amount of all Letter of Credit Outstandings at such time and (III) the
aggregate principal amount of all other Unsecured Consolidated Total
Indebtedness of the Borrowers at such time (after giving effect to the proposed
Competitive Bid Borrowing and the application of the proceeds therefrom), and
(viii) any other terms to be applicable to such Competitive Bid Borrowing. The
Administrative Agent shall promptly notify each Bidder Lender of each such
request for a Competitive Bid Borrowing received by it from the Borrowers by
telecopying to each such Bidder Lender a copy of the related Notice of
Competitive Bid Borrowing.

          (b) Each Bidder Lender shall, if in its sole discretion it elects to do
so, irrevocably offer to make one or more Competitive Bid Loans to the
Borrowers as part of such proposed Competitive Bid Borrowing at a rate or rates
of interest specified by such Bidder Lender in its sole discretion and
determined by such Bidder Lender independently of each other Bidder Lender, by
notifying the Administrative Agent in writing (which notice shall be promptly
distributed to the Borrowers, provided that the Administrative Agent shall not
be liable to any Bidder Lender or to the Borrowers for failure to distribute
any such notice to the Borrowers unless such failure resulted from the gross
negligence or willful misconduct on the part of the Administrative Agent (as
determined by a court of competent jurisdiction)), before 10:00 A.M. (New York
time) on the date (the “Reply Date”) which is (x) in the case of a Spread
Competitive Bid Borrowing, three Business
Days before the date of such proposed Competitive Bid Borrowing, and (y)
in the case of an Absolute Rate Competitive Bid Borrowing, two Business Days
before the date of such proposed Competitive Bid Borrowing, of the minimum
amount, if any, and maximum amount of each Competitive Bid Loan which such
Bidder Lender would be willing to make as part of such proposed Competitive Bid
Borrowing (which amounts may, subject to the proviso to the first sentence of
Section 1.01(e), exceed such Lender’s Commitment) and the rate or rates of
interest therefor (specified to the nearest .0001 and which, in the case of a
Spread Competitive Bid Borrowing, shall be the Spread offered for each maturity
requested in the Notice of Competitive Bid Borrowing); provided that if the
Administrative Agent in its capacity as a Bidder Lender shall, in its sole
discretion, elect to make any such offer, it shall notify the Borrowers in
writing of such offer before 9:45 A.M. (New York time) on the Reply Date. If
any Bidder Lender shall elect not to make such an offer, such Bidder Lender
shall so notify the Administrative Agent, before 10:00 A.M. (New York time) on
the Reply Date, and such Bidder Lender shall not be obligated to, and shall
not, make any Competitive Bid Loan as part of such Competitive Bid Borrowing;
provided that the failure by any Bidder Lender to give such notice shall not
cause such Bidder Lender to be obligated to, and such Bidder Lender shall not,
make any Competitive Bid Loan as part of such proposed Competitive Bid
Borrowing.

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     (c) The Borrowers shall, in turn, before 10:30 A.M. (New York time) on the
Reply Date, either

     (1) cancel such Competitive Bid Borrowing by giving the
Administrative Agent notice (in writing or by telephone promptly
confirmed in writing) to that effect (it being understood and agreed that
if the Borrowers give no such notice of cancellation and no notice of
acceptance pursuant to clause (2) below, then the Borrowers shall be
deemed to have canceled such Competitive Bid Borrowing), or

     (2) accept one or more of the offers made by any Bidder Lender or
Bidder Lenders pursuant to clause (b) above by giving notice (in writing
or by telephone confirmed in writing) to the Administrative Agent of the
amount of each Competitive Bid Loan (which amount shall be equal to or
greater than the minimum amount, if any, and equal to or less than the
maximum amount, notified to the Borrowers by the Administrative Agent on
behalf of each such Bidder Lender for such Competitive Bid Borrowing) and
reject any remaining offers made by Bidder Lenders pursuant to clause (b)
above by giving the Administrative Agent notice to that effect; provided,
however, that acceptance of offers may only be made on the basis of
ascending Absolute Rates (in the case of an Absolute Rate Competitive Bid
Borrowing) or Spreads (in the case of a Spread Competitive Bid
Borrowing), in each case commencing with the lowest rate so offered; and
provided, further, that if offers are made by two or more Bidder Lenders
at the same rate and acceptance of all such equal offers would result in
a greater principal amount of Competitive Bid Loans being accepted than
the aggregate principal amount requested by the Borrowers, the Borrowers
shall have the right to accept one or more such equal offers in their
entirety and reject the other equal offer or offers or to allocate
acceptance among all such equal offers
(but giving effect to the minimum amounts, if any, and maximum
amounts specified for each such offer pursuant to clause (b) above), as
the Borrowers may elect in its sole discretion.

          (d) If the Borrowers notify the Administrative Agent that such Competitive
Bid Borrowing is canceled (or is deemed to be canceled) pursuant to clause
(c)(1) above, the Administrative Agent shall give prompt written notice thereof
to the Bidder Lenders and such Competitive Bid Borrowing shall not be made.

          (e) If the Borrowers accept one or more of the offers made by any Bidder
Lender or Bidder Lenders pursuant to clause (c)(2) above, the Administrative
Agent shall in turn promptly notify (in writing or by telephone confirmed in
writing) (x) each Bidder Lender that has made an offer as described in clause
(b) above, of the date and aggregate amount of such Competitive Bid Borrowing
and whether or not any offer or offers made by such Bidder Lender pursuant to
clause (b) above have been accepted by the Borrowers and (y) each Bidder Lender
that is to make a Competitive Bid Loan as part of such Competitive Bid
Borrowing, of the amount of each Competitive Bid Loan to be made by such Bidder
Lender as part of such Competitive Bid Borrowing.

          (f) On the last Business Day of each calendar quarter, the Administrative
Agent shall notify the Borrowers and the Lenders of the aggregate principal
amount of Competitive Bid Loans (if any) outstanding at such time.

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          1.05 Disbursement of Funds. No later than 12:00 Noon (New York time) on
the date specified in each Notice of Borrowing (or (x) in the case of Swingline
Loans, no later than 3:00 P.M. (New York time) on the date specified pursuant
to Section 1.03(b)(i), (y) in the case of Mandatory Borrowings, no later than
1:00 P.M. (New York time) on the date specified in Section 1.01(d) or (z) in
the case of Competitive Bid Loans, no later than 12:00 Noon (New York time) on
the date specified pursuant to Section 1.04(a)) each Lender with a commitment
of the applicable Tranche will make available its pro rata portion (determined
in accordance with Section 1.08) of each such Borrowing requested to be made on
such date (or, (x) in the case of Swingline Loans, the Swingline Lender will
make available the full amount thereof and (y) in the case of Competitive Bid
Loans, the respective Bidder Lenders which are to make such Competitive Bid
Loans in accordance with Section 1.04(e) will make available their respective
amount thereof). All such amounts will be made available in Dollars and in
immediately available funds at the Payment Office, and, except for Revolving
Loans made pursuant to a Mandatory Borrowing, the Administrative Agent will
make available to the Borrowers at the Payment Office, the aggregate of the
amounts so made available by the Lenders to the extent of funds actually
received by the Administrative Agent. Unless the Administrative Agent shall
have been notified by any Lender prior to the date of Borrowing that such
Lender does not intend to make available to the Administrative Agent such
Lender’s portion of any Borrowing to be made on such date, the Administrative
Agent may assume that such Lender has made such amount available to the
Administrative Agent on such date of Borrowing and the Administrative Agent may
(but shall not be obligated to), in reliance upon such assumption, make
available to the Borrowers a corresponding amount. If such corresponding
amount is not in fact made available to the Administrative Agent
by such Lender, the Administrative Agent shall be entitled to recover such
corresponding amount on demand from such Lender. If such Lender does not pay
such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrowers and the
Borrowers shall pay such corresponding amount to the Administrative Agent one
Business Day after the Administrative Agent’s demand therefor. The
Administrative Agent shall also be entitled to recover on demand from such
Lender or the Borrowers, as the case may be, interest on such corresponding
amount in respect of each day from the date such corresponding amount was made
available by the Administrative Agent to the Borrowers until the date such
corresponding amount is recovered by the Administrative Agent, at a rate per
annum equal to (i) if recovered from such Lender, the overnight Federal Funds
Rate for the first three days and the interest rate otherwise applicable to
such Loans for each day thereafter, and (ii) if recovered from the Borrowers,
the rate of interest applicable to the respective Borrowing, as determined
pursuant to Section 1.09. Nothing in this Section 1.05 shall be deemed to
relieve any Lender from its obligation to make Loans hereunder or to prejudice
any rights which the Borrowers may have against any Lender as a result of any
failure by such Lender to make Loans hereunder.

          1.06 Notes. (a) The obligation of the Borrowers to pay the principal of,
and interest on, the Loans made by each Lender shall be joint and several and
shall be evidenced (i) if Revolving Loans, by a promissory note substantially
in the form of Exhibit C-1, with blanks appropriately completed
in conformity
herewith (each, a “Revolving Loan Note” and, collectively, the “Revolving Loan
Notes”), (ii) if Term Loans, by a promissory note substantially in the form of
Exhibit C-2, with blanks appropriately completed in conformity herewith (each,
a “Term Loan Note” and, collectively, the “Term Loan Notes”), and (iii) if
Swingline Loans, by a promissory note substantially in the form of Exhibit C-3,
with blanks appropriately completed in

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 conformity herewith (the “Swingline Loan
Note”). The terms of each Competitive Bid Loan shall be evidenced by the
respective correspondence between the Borrowers and the respective Bidder
Lender pursuant to Section 1.04 and, unless otherwise agreed by the Borrowers
and such Bidder Lender or unless the respective Bidder Lender makes a request
pursuant to the immediately succeeding sentence, Competitive Bid Loans shall
not be evidenced by promissory notes. If requested by any Bidder Lender, the
Borrowers agree to execute and deliver a promissory note, in form reasonably
satisfactory to the respective Bidder Lender, evidencing the Competitive Bid
Loans of such Bidder Lender to the Borrowers (with any such promissory notes
herein called “Competitive Bid Notes”).

          (b) The Term Loan Note issued to each Lender shall (i) be duly executed
and delivered by Trizec and Holdings on a joint and several basis (or if the
Additional Borrower is formed in accordance with Section 8.04(b), by the
Borrowers on a joint and several basis in accordance with Section 1.06(g)),
(ii) be payable to such Lender or its registered assigns and be dated the date
of issuance, (iii) be in a stated principal amount equal to the Term Loan
Commitment of such Lender (or if issued after the termination of the Term Loan
Commitments, be in a stated principal amount equal to the outstanding principal
amount of the Term Loans of such Lender on the date of
issuance thereof) and be payable in Dollars in the principal amount of
Term Loans evidenced thereby from time to time, (iv) mature on the Maturity
Date, (v) bear interest as provided in the appropriate clause of Section 1.09
in respect of the Base Rate Loans and Eurodollar Rate Loans, as the case may
be, evidenced thereby, (vi) be subject to mandatory prepayment as provided in
Section 4.01 and mandatory repayment as provided in Section 4.02, and (vii) be
entitled to the benefits of this Agreement and the other Credit Documents.

          (c) The Revolving Loan Note issued to each Lender shall (i) be duly
executed and delivered by Trizec and Holdings on a joint and several basis (or
if the Additional Borrower is formed in accordance with Section 8.04(b), by the
Borrowers on a joint and several basis in accordance with Section 1.06(g)),
(ii) be payable to such Lender or its registered assigns and be dated the date
of issuance, (iii) be in a stated principal amount equal to the Revolving Loan
Commitment of such Lender (or if issued after the termination of the Revolving
Loan Commitments, be in a stated principal amount equal to the outstanding
principal amount of the Revolving Loans of such Lender on the date of the
issuance thereof) and be payable in Dollars in the principal amount of
Revolving Loans evidenced thereby from time to time, (iv) mature on the
Maturity Date, (v) bear interest as provided in the appropriate clause of
Section 1.09 in respect of the Base Rate Loans and Eurodollar Rate Loans, as
the case may be, evidenced thereby, (vi) be subject to voluntary prepayment as
provided in Section 4.01 and mandatory repayment as provided in Section 4.02,
and (vii) be entitled to the benefits of this Agreement and the other Credit
Documents.

          (d) The Swingline Loan Note issued to the Swingline Lender shall (i) be
duly executed and delivered by Trizec and Holdings on a joint and several basis
(or if the Additional Borrower is formed in accordance with Section 8.04(b), by
the Borrowers on a joint and several basis in accordance with Section 1.06(g)),
(ii) be payable to the order of the Swingline Lender and be dated the date of
issuance, (iii) be in a stated principal amount equal to the Maximum Swingline
Amount and be payable in Dollars in the principal amount of Swingline Loans
evidenced thereby from time to time, (iv) mature on the Swingline Expiry Date,
(v) bear interest as provided in the appropriate clause of Section 1.09 in
respect of the Base Rate Loans evidenced

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thereby, (vi) be subject to voluntary
prepayment as provided in Section 4.01 and mandatory repayment as provided in
Section 4.02, and (vii) be entitled to the benefits of this Agreement and the
other Credit Documents.

          (e) Each Lender will note on its internal records the amount of each Loan
made by it and each payment in respect thereof and will prior to any transfer
of any of its Notes endorse on the reverse side thereof the outstanding
principal amount of Loans evidenced thereby. Failure to make any such notation
or any error in such notation shall not affect the Borrowers’ obligations in
respect of such Loans.

          (f) Notwithstanding anything to the contrary contained above or elsewhere
in this Agreement, Notes shall only be delivered to Lenders which at any time
(or from time to time) specifically request the delivery of such Notes. No
failure of any
Lender to request or obtain a Note evidencing its Loans to the Borrowers
shall affect or in any manner impair the obligation of the Borrowers to pay the
Loans (and all related Obligations) which would otherwise be evidenced thereby
in accordance with the requirements of this Agreement, and shall not in any way
affect the guaranty thereof provided pursuant to the Subsidiaries Guaranty. Any
Lender which does not have a Note evidencing its outstanding Loans shall in no
event be required to make the notations otherwise described in preceding clause
(e) of this Section 1.06. At any time when any Lender requests the delivery of
a Note to evidence any of its outstanding Term Loans and Term Loan Commitments
(if any), or its outstanding Revolving Loans and Revolving Loan Commitments (if
any), or its outstanding Swingline Loans, or its outstanding Competitive Bid
Loans, the Borrowers shall promptly execute and deliver to the respective
Lender the requested Note in the appropriate amount or amounts to evidence such
Loans and Commitments (if any).

          (g) In the event that Trizec forms the Additional Borrower in accordance
with Section 8.04(b) (other than by conversion of Holdings into the Additional
Borrower), at such time (i) Trizec and Holdings shall cause the Additional
Borrower to execute and deliver the Joinder Agreement in the form of Exhibit D
(the “Joinder Agreement”) pursuant to which the Additional Borrower shall
become a Credit Party party to this Agreement and certain of the other Credit
Documents, and (ii) each of the Borrowers, shall, and shall cause the
Additional Borrower to, execute and deliver to the Administrative Agent (x) a
Note in replacement of each Note then outstanding to evidence the joint and
several liability of the Borrowers and the Additional Borrower for the
indebtedness evidenced thereby, and (y) all relevant officers’ certificates,
resolutions, opinions of counsel and other documentation of the type described
in Sections 5.02 and 5.03 as the Additional Borrower would have had to deliver
if it were a Credit Party party to this Agreement on the Effective Date and as
otherwise may be reasonably requested by the Administrative Agent.

          1.07 Conversions. The Borrowers shall have the option to convert, on any
Business Day occurring after the Effective Date, all or a portion equal to at
least the Minimum Borrowing Amount of the outstanding principal amount of Loans
made pursuant to one or more Borrowings of one or more Types of Loans into a
Borrowing of another Type of Loan, provided that (i) except as otherwise
provided in Section 1.11(b), Eurodollar Rate Loans may be converted into Base
Rate Loans only on the last day of an Interest Period applicable to the Loans
being converted and no such partial conversion of Eurodollar Rate Loans shall
reduce the outstanding

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principal amount of such Eurodollar Rate Loans made
pursuant to a single Borrowing to less than the Minimum Borrowing Amount
applicable thereto, (ii) unless the Required Lenders otherwise specifically
agree, Base Rate Loans may only be converted into Eurodollar Rate Loans if no
Specified Default or Event of Default is in existence on the date of the
conversion, and (iii) no conversion pursuant to this Section 1.07 shall result
in a greater number of Borrowings of Eurodollar Rate Loans than is permitted
under Section 1.02. Each such conversion shall be effected by the Borrowers by
giving the Administrative Agent at the Notice Office prior to 12:00 Noon (New
York time) at least three Business Days’ prior notice (each a “Notice of
Conversion/Continuation”), in the
form of Exhibit E, appropriately completed to specify the Loans to be so
converted, the Borrowing or Borrowings pursuant to which such Loans were made
and, if to be converted into Eurodollar Rate Loans, the Interest Period to be
initially applicable thereto. The Administrative Agent shall give each Lender
prompt notice of any such proposed conversion. Swingline Loans and Competitive
Bid Loans may not be converted pursuant to this Section 1.07.

                    1.08 Pro Rata Borrowings. All Borrowings of Term Loans and Revolving Loans
under this Agreement shall be incurred from the Lenders pro rata on the basis
of their Term Loan Commitments or their Revolvin
g Loan Commitments, as the case
may be. All Mandatory Borrowings made pursuant to Section 1.01(d) shall be
made by the Lenders with Revolving Loan Commitments pro rata on the basis of
their Percentages. It is understood that no Lender shall be responsible for any
default by any other Lender of its obligation to make Loans hereunder and that
each Lender shall be obligated to make the Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to make its Loans
hereunder.

                    1.09 Interest. (a) The Borrowers jointly and severally agree to pay
interest in respect of the unpaid principal amount of each Base Rate Loan from
the date of the Borrowing thereof until the earlier of (x) the maturity thereof
(whether by acceleration or otherwise) and (y) the conversion of such Base Rate
Loan to a Eurodollar Rate Loan pursuant to Section 1.07, at a rate per annum
which shall be equal to the sum of the Base Rate plus the relevant Applicable
Margin each as in effect from time to time.

                    (b) The Borrowers jointly and severally agree to pay interest in respect
of the unpaid principal amount of each Eurodollar Rate Loan from the date of
the Borrowing thereof until the earlier of (x) the maturity thereof (whether by
acceleration or otherwise) and (y) the conversion of such Eurodollar Rate Loan
to a Base Rate Loan pursuant to Section 1.07, 1.10 or 1.11, as applicable, at a
rate per annum which shall, during each Interest Period applicable thereto, be
equal to the sum of the Eurodollar Rate for such Interest Period plus the
Applicable Margin as in effect from time to time during such Interest Period.

                    (c) The Borrowers jointly and severally agree to pay interest in respect
of the unpaid principal amount of each Competitive Bid Loan from the date of
the Borrowing thereof until maturity (whether by acceleration or otherwise) at
a rate or rates per annum specified by a Bidder Lender or Bidder Lenders, as
the case may be, pursuant to Section 1.04(b) and accepted by the Borrowers
pursuant to Section 1.04(c).

                    (d) Notwithstanding the foregoing, (i) upon the occurrence and during the
continuance of an Event of Default, all outstanding Loans shall bear interest
at a rate per annum

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equal to the greater of (x) the rate then borne by such
Loans and (y) the sum of the Base Rate as in effect from time to time plus
4.5%, and (ii) to the extent permitted by law, overdue interest in respect of
each Loan and any other overdue amount payable hereunder shall, in each case,
bear interest at a rate per annum equal to the sum of the Base Rate as in
effect from time to time plus 4.5%.

          (e) Accrued (and theretofore unpaid) interest shall be payable (i) in
respect of each Base Rate Loan, in arrears on (x) September 30, 2004 and (y)
each Quarterly Payment Date thereafter, (ii) in respect of each Eurodollar Rate
Loan, on the last day of each Interest Period applicable thereto, (iii) in
respect of each Competitive Bid Loan, at such times as specified in the Notice
of Competitive Bid Borrowing relating thereto and (iv) in respect of each Loan,
on any repayment or prepayment (on the amount repaid or prepaid), at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand.

          (f) Upon each Interest Determination Date, the Administrative Agent shall
determine the Eurodollar Rate for the respective Interest Period to be
applicable to Eurodollar Rate Loans and shall promptly notify the Borrowers and
the Lenders, with a commitment of the applicable Tranche in the case of a new
Borrowing or holding such Loans in the case of existing Loans, of such
determination. Each such determination shall, absent manifest error, be final
and conclusive and binding on all parties hereto.

          1.10 Interest Periods. At the time the Borrowers give any Notice of
Borrowing or Notice of Conversion/Continuation in respect of the making of, or
conversion into, any Eurodollar Rate Loan (in the case of the initial Interest
Period applicable thereto) or prior to 12:00 Noon (New York time) on the third
Business Day prior to the expiration of an Interest Period applicable to such
Eurodollar Rate Loan (in the case of any subsequent Interest Period), the
Borrowers shall have the right to elect, by giving the Administrative Agent
notice thereof, a one, two or three month interest period or, if consented to
by the Administrative Agent and otherwise available to all of the Lenders, with
a commitment of the applicable Tranche in the case of a Notice of Borrowing or
holding the applicable Loans in the case of a Notice of
Conversion/Continuation, a period of less than one month (each an “Interest
Period”) applicable to such Eurodollar Rate Loan, provided that:

     (i) all Eurodollar Rate Loans comprising a single Borrowing shall at
all times have the same Interest Period;

     (ii) the initial Interest Period for any Borrowing of Eurodollar
Rate Loans shall commence on the date of such Borrowing (including the
date of any conversion thereto from a Base Rate Loan) and each Interest
Period occurring thereafter in respect of such Eurodollar Rate Loans
shall commence on the day on which the next preceding Interest Period
applicable thereto expires;

     (iii) if any Interest Period for a Eurodollar Rate Loan begins on a
day for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period, such Interest Period shall end
on the last Business Day of such calendar month;

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     (iv) if any Interest Period for a Eurodollar Rate Loan would
otherwise expire on a day which is not a Business Day, such Interest
Period shall expire on the next succeeding Business Day; provided,
however, that if any Interest Period for a Eurodollar Rate Loan would
otherwise expire on a day which is not a
Business Day but is a day of the month after which no further
Business Day occurs in such month, such Interest Period shall expire on
the next preceding Business Day;

     (v) unless the Required Lenders otherwise specifically agree, no
Interest Period may be selected at any time when a Specified Default or
an Event of Default is then in existence; and

     (vi) no Interest Period in respect of any Borrowing of Eurodollar
Rate Loans shall be selected which extends beyond the Maturity Date.

          If by 12:00 Noon (New York time) on the third Business Day preceding the
expiration of any Interest Period applicable to a Borrowing of Eurodollar Rate
Loans, (x) the Borrowers have failed to elect a new Interest Period to be
applicable to such Eurodollar Rate Loans as provided above, the Borrowers shall
be deemed to have elected to continue such Eurodollar Rate Loans as a new
Borrowing of Eurodollar Rate Loans having an Interest Period of one month, or
(y) the Borrowers are not permitted to elect a new Interest Period to be
applicable to such Eurodollar Rate Loans as provided above, the Borrowers shall
be deemed to have elected to convert such Eurodollar Rate Loans into Base Rate
Loans. Each deemed election under this paragraph shall be effective as of the
expiration date of such current Interest Period.

          1.11 Increased Costs, Illegality, etc. (a) In the event that any Lender
shall have determined in good faith (which determination shall, absent manifest
error, be final and conclusive and binding upon all parties hereto but, with
respect to clause (i) below, may be made only by the Administrative Agent):

     (i) on any Interest Determination Date that, by reason of any
changes arising after the Effective Date affecting the applicable
interbank market, adequate and fair means do not exist for ascertaining
the applicable interest rate on the basis provided for in the definition
of the Eurodollar Rate; or

     (ii) at any time, that such Lender shall incur increased costs or
reductions in the amounts received or receivable hereunder with respect
to any Eurodollar Rate Loan or Competitive Bid Loan because of (x) any
change arising after the Effective Date (or, in the case of a Competitive
Bid Loan, since the making of such Competitive Bid Loan) in any
applicable law or governmental rule, regulation, order, guideline or
request (whether or not having the force of law) or in the interpretation
or administration thereof by the NAIC or any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof and including the introduction of any new law or
governmental rule, regulation, order, guideline or request, such as, for
example, but not limited to: (A) a change in the basis of taxation of
payment to any Lender of the principal of or interest on such Loans or
any other amounts payable hereunder (except for changes in the rate of
tax on, or determined by reference to, the net income or profits or
franchise taxes based on net income of such Lender pursuant to the laws
of the country in

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which it is organized or in which its principal office or applicable
lending office is located or any subdivision thereof or therein) or (B) a
change in official reserve requirements (except to the extent included in
the computation of the Eurodollar Rate) or any special deposit,
assessment or similar requirement against assets of deposits with or for
the account of, or credit extended by, any Lender (or its applicable
lending office) and/or (y) other circumstances since the Effective Date
(or, in the case of a Competitive Bid Loan, since the making of such
Competitive Bid Loan) affecting the applicable interbank market or the
position of such Lender and lenders generally in such market; or

     (iii) at any time after the date of this Agreement, that the making
or continuance of any Eurodollar Rate Loan or Competitive Bid Loan has
been made (x) unlawful by any law or governmental rule, regulation or
order, (y) impossible by compliance by any Lender in good faith with any
governmental request (whether or not having force of law) or (z)
impracticable as a result of a contingency occurring after the Effective
Date which materially and adversely affects the applicable interbank
market;

then, and in any such event, such Lender (or the Administrative
Agent, in the case of clause (i) above) shall promptly give notice (by
telephone promptly confirmed in writing) to the Borrowers and, except in
the case of clause (i) above, to the Administrative Agent of such
determination (which notice the Administrative Agent shall promptly
transmit to each of the other Lenders). Thereafter (x) in the case of
clause (i) above, Eurodollar Rate Loans and Spread Competitive Bid
Borrowings shall no longer be available until such time as the
Administrative Agent notifies the Borrowers and the Lenders that the
circumstances giving rise to such notice by the Administrative Agent no
longer exist, and any Notice of Borrowing, Notice of Competitive Bid
Borrowing or any Notice of Conversion/Continuation given by the Borrowers
with respect to such Loans which have not yet been incurred (including by
way of conversion) shall be deemed rescinded by the Borrowers, (y) in the
case of clause (ii) above, the Borrowers shall, subject to the provisions
of Section 13.17 (to the extent applicable), pay to such Lender, within
10 days of its written request therefor, such additional amounts (in the
form of an increased rate of, or a different method of calculating,
interest or otherwise as such Lender in good faith shall reasonably
determine) as shall be required to compensate such Lender for such
increased costs or reductions in amounts received or receivable hereunder
(a written notice as to the additional amounts owed to such Lender,
showing in reasonable detail the basis for the calculation thereof,
submitted to the Borrowers by such Lender shall, absent manifest error,
be final and conclusive and binding on all the parties hereto) and (z) in
the case of clause (iii) above, the Borrowers shall take one of the
actions specified in Section 1.11(b) as promptly as possible and, in any
event, within the time period required by law.

          (b) At any time that any Eurodollar Rate Loan or Competitive Bid Loan is
affected by the circumstances described in Section 1.11(a)(ii) or (iii), the
Borrowers may (and, in the case of a Eurodollar Rate Loan or Competitive Bid
Loan affected by the circumstances described in Section 1.11(a)(iii), shall)
either (x) if the affected Eurodollar Rate Loan or Competitive Bid Loan then
being made initially or pursuant to a conversion, cancel the respective
Borrowing by giving the Administrative
Agent telephonic notice (confirmed in writing) on the same date that the
Borrowers were notified by the affected Lender pursuant to Section 1.11(a)(ii)
or (iii) or (y) if the affected Eurodollar Rate Loan or Competitive Bid Loan is
then outstanding, upon at least two Business Days’ written notice to the
Administrative Agent,

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require the affected Lenders (A) in the case of a
Eurodollar Rate Loan, to convert such Eurodollar Rate Loan into a Base Rate
Loan and (B) in the case of a Competitive Bid Loan, to repay such Competitive
Bid Loan in full, provided that if more than one Lender is affected at any time
as described above in this clause (b), then all affected Lenders must be
treated the same pursuant to this Section 1.11(b).

          (c) If at any time after the Effective Date any Lender determines that the
introduction of or any change (which introduction or change shall have occurred
after the Effective Date) in any applicable law or governmental rule,
regulation, order, guideline, directive or request (whether or not having the
force of law) concerning capital adequacy, or any change in interpretation or
administration thereof by the NAIC or any governmental authority, central bank
or comparable agency charged with the interpretation or administration thereof,
will have the effect of increasing the amount of capital required or expected
to be maintained by such Lender or any corporation controlling such Lender
based on the existence of such Lender’s Commitment hereunder or its obligations
hereunder, then the Borrowers jointly and severally agree to pay, subject to
the provisions of Section 13.17 (to the extent applicable), to such Lender,
within 10 days of its written request therefor, such additional amounts as
shall be required to compensate such Lender or such other corporation for the
increased cost to such Lender or such other corporation or the reduction in the
rate of return to such Lender or such other corporation as a result of such
increase of capital. In determining such additional amounts, each Lender will
act reasonably and in good faith and will use averaging and attribution methods
which are reasonable, provided that such Lender’s determination of compensation
owing under this Section 1.11(c) shall, absent manifest error, be final and
conclusive and binding on all the parties hereto. Each Lender, upon determining
that any additional amounts will be payable pursuant to this Section 1.11(c),
will give prompt written notice thereof to the Borrowers, which notice shall
show in reasonable detail the basis for calculation of such additional amounts.

          1.12 Compensation. The Borrowers agree jointly and severally, subject to
the provisions of Section 13.17 (to the extent applicable), to compensate each
Lender, within 10 days of its written request (which request shall set forth in
reasonable detail the basis for requesting such compensation and shall be
conclusive absent manifest error), for all reasonable losses, expenses and
liabilities (including, without limitation, any loss, expense or liability
incurred by reason of the liquidation or reemployment of deposits or other
funds required by such Lender to fund its Eurodollar Rate Loans or Competitive
Bid Loan, but excluding loss of anticipated profits) which such Lender may
sustain: (i) if for any reason (other than a default by such Lender or the
Administrative Agent) a Borrowing of, or conversion from or into, Eurodollar
Rate Loans or Competitive Bid Loan does not occur on a date specified therefor
in the Notice of Borrowing, Notice of Competitive Bid Borrowing or Notice of
Conversion/Continuation (whether or not withdrawn or deemed withdrawn pursuant
to Section 1.11(a)); (ii) if any repayment (including any repayment made
pursuant to Section 4.01 or 4.02 or as a result of an
acceleration of the Loans pursuant to Section 10) or conversion of any
Eurodollar Rate Loans or Competitive Bid Loan occurs on a date which is not the
last day of an Interest Period or maturity date with respect thereto, as the
case may be; (iii) if any prepayment of any Eurodollar Rate Loans or
Competitive Bid Loan is not made on any date specified in a notice of
prepayment given by the Borrowers; or (iv) as a consequence of any election
made pursuant to Section 1.11(b).

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          1.13 Lending Offices. Each Lender may at any time or from time to time
designate, by written notice to the Administrative Agent to the extent not
already reflected on Schedule II, one or more lending offices (which, for this
purpose, may include Affiliates of the respective Lender) for the Loans made by
such Lender hereunder; provided that, for designations made after the Effective
Date, to the extent such designation shall result in increased costs under
Section 1.11, 2.06 or 4.04 in excess of those which would be charged in the
absence of such designation of a different lending office (including a
different Affiliate of the respective Lender), then the Borrowers shall not be
obligated to pay such excess increased costs (although the Borrowers, in
accordance with and pursuant to the other provisions of this Agreement, shall
be jointly and severally obligated to pay the costs which would apply in the
absence of such designation and any subsequent increased costs of the type
described above resulting from changes after the date of the respective
designation). Each lending office and Affiliate of any Lender designated as
provided above shall, for all purposes of this Agreement, be treated in the
same manner as the respective Lender (and shall be entitled to all indemnities
and similar provisions in respect of its acting as such hereunder). Nothing in
this Section 1.13 shall affect or postpone any of the obligations of the
Borrowers or the right of any Lender provided in Sections 1.11, 2.06 and 4.04.

          1.14 Requested Designation of other Lending Offices. Each Lender agrees
that on the occurrence of any event giving rise to the operation of Section
1.11(a)(ii) or (iii), Section 1.11(c), Section 2.06 or Section 4.04 with
respect to such Lender, it will, if requested by the Borrowers, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Loans affected by such event, provided that such
designation is made on such terms that such Lender and its lending office
suffer no economic, legal or regulatory disadvantage, with the object of
avoiding the consequence of the event giving rise to the operation of such
Section. Nothing in this Section 1.14 shall affect or postpone any of the
obligations of the Borrowers or the rights of any Lender provided in Sections
1.11, 2.06 or 4.04.

          1.15 Replacement of Lenders. (a) If any Lender becomes a Defaulting Lender
or otherwise defaults in its obligations to make Loans, (b) upon the occurrence
of an event giving rise to the operation of Section 1.11(a)(ii) or (iii),
Section 1.11(c), Section 2.06 or Section 4.04 with respect to any Lender which
results in such Lender charging to the Borrowers increased costs in excess of
those being generally charged by the other Lenders or (c) in the case of
certain refusals by a Lender to consent to certain proposed changes, waivers,
discharges or terminations with respect to this Agreement which have been
approved by the Required Lenders as (and to the extent) provided in Section
13.12(b), the Borrowers shall have the right, if no Specified Default or Event
of Default then exists (or, in the case of the preceding clause (c), no
Specified Default or Event of
Default will exist immediately after giving effect to such replacement),
to replace such Lender (the “Replaced Lender”) with one or more other Eligible
Transferees, none of whom shall constitute a Defaulting Lender at the time of
such replacement (collectively, the “Replacement Lender”), and each of whom
shall be required to be reasonably acceptable to the Administrative Agent;
provided that (i) at the time of any replacement pursuant to this Section 1.15,
the Replacement Lender shall enter into one or more Assignment and Assumption
Agreements pursuant to Section 13.04(b) (and with all fees payable pursuant to
said Section 13.04(b) to be paid by the Replacement Lender) pursuant to which
the Replacement Lender shall acquire the Commitment and all outstanding Loans
of, and participations in Letters of Credit by,

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the Replaced Lender and, in
connection therewith, shall pay to (x) the Replaced Lender in respect thereof
an amount equal to the sum of (I) the principal of, and all accrued interest
on, all outstanding Loans of the Replaced Lender, (II) an amount equal to all
Unpaid Drawings that have been funded by (and not reimbursed to) such Replaced
Lender, together with all then unpaid interest with respect thereto at such
time and (III) all accrued, but theretofore unpaid, Fees owing to the Replaced
Lender pursuant to Section 3.01, (y) each Issuing Lender an amount equal to
such Replaced Lender’s Percentage of any Unpaid Drawing (which at such time
remains an Unpaid Drawing) to the extent such amount was not theretofore funded
by such Replaced Lender to such Issuing Lender and (z) the Swingline Lender an
amount equal to such Replaced Lender’s Percentage of any Mandatory Borrowings
to the extent such amount was not theretofore funded by such Replaced Lender to
the Swingline Lender and (ii) all obligations of the Borrowers due and owing to
the Replaced Lender at such time (other than those specifically described in
clause (i) above in respect of which the assignment purchase price has been, or
is concurrently being, paid) shall be paid in full to such Replaced Lender
concurrently with such replacement. Upon the execution of the respective
Assignment and Assumption Agreements, the payment of amounts referred to above,
recordation of the assignment on the Register by the Administrative Agent
pursuant to Section 13.15 and, if so requested by the Replacement Lender,
delivery to the Replacement Lender of the appropriate Note or Notes executed by
the Borrowers in exchange for the Note or Notes held by the Replaced Lender, if
any, the Replacement Lender shall become a Lender hereunder and the Replaced
Lender shall cease to constitute a Lender hereunder, except with respect to
indemnification provisions under this Agreement (including, without limitation,
Sections 1.11, 1.12, 2.06, 4.04, 12.06 and 13.01), which shall survive as to
such Replaced Lender.

          1.16 Additional Commitments. (a) So long as no Default or Event of Default
then exists or would result therefrom, the Borrowers, in consultation with the
Administrative Agent, shall have the right at any time and from time to time on
or prior to the 180th day prior to the original Maturity Date and upon at least
30 days’ prior written notice to the Administrative Agent, to request on one or
more occasions that one or more Lenders (and/or one or more other Persons which
will become Lenders as provided below) provide Additional Commitments and,
subject to the applicable terms and conditions contained in this Agreement and
the relevant Additional Commitment Agreement, make Revolving Loans and/or Term
Loans pursuant to Section 1.01; it being understood and agreed, however, that
(i) the Borrowers, in consultation with the Administrative Agent, shall
determine the allocation of the Additional Commitment between Revolving Loans
and Term Loans, (ii) no Lender shall be obligated to provide
an Additional Commitment as a result of any request by the Borrowers,
(iii) until such time, if any, as (x) such Lender has agreed in its sole
discretion to provide an Additional Commitment and executed and delivered to
the Administrative Agent an Additional Commitment Agreement in respect thereof
as provided in Section 1.16(b) and (y) such other conditions set forth in
Section 1.16(b) shall have been satisfied, such Lender shall not be obligated
to fund any Term Loans or Revolving Loans, or participate in any Letters of
Credit, in excess of the amounts provided for in Sections 1.01 or 2.03, as the
case may be, before giving effect to such Additional Commitments provided
pursuant to this Section 1.16, (iv) any Lender (or, in the circumstances
contemplated by clause (viii) below, any other Person which will qualify as an
Eligible Transferee) may so provide an Additional Commitment without the
consent of any other Lender (it being understood and agreed that the consent of
the Administrative Agent shall be required if any such Additional Commitments
are to be provided by a Person which is not already a Lender, which consent
shall

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not be unreasonably withheld or delayed), (v) each provision of
Additional Commitments on a given date pursuant to this Section 1.16 shall be
in a minimum aggregate amount (for all Lenders (including, in the circumstances
contemplated by clause (viii) below, Eligible Transferees who will become
Lenders)) of at least $50,000,000, (vi) the aggregate amount of all Additional
Commitments permitted to be provided pursuant to this Section 1.16, shall not
exceed $250,000,000, (vii) the up-front fees payable to any Lender (including
any Eligible Transferee that will become a Lender as contemplated by clause
(viii) below) providing an Additional Commitment shall be as set forth in the
relevant Additional Commitment Agreement, (viii) the Borrowers shall have the
right, in addition to requesting the then existing Lenders to provide
Additional Commitments pursuant to this Section 1.16, to request Additional
Commitments from Persons which would qualify as Eligible Transferees hereunder,
provided that any such Additional Commitments provided by any such Eligible
Transferee which is not already a Lender shall be in a minimum amount (for such
Eligible Transferee) of at least $5,000,000, and (ix) all actions taken by the
Borrowers pursuant to this Section 1.16(a) shall be done in consultation with
the Administrative Agent.

          (b) At the time of any provision of Additional Commitments pursuant to
this Section 1.16, (i) the Borrowers, the Administrative Agent and each such
Lender or other Eligible Transferee which agrees to provide an Additional
Commitment (each, an “Additional Lender”) shall execute and deliver to the
Administrative Agent an Additional Commitment Agreement substantially in the
form of Exhibit N, subject to such modifications in form and substance
reasonably satisfactory to the Administrative Agent as may be necessary or
appropriate (with the effectiveness of such Additional Lender’s Additional
Commitment to occur upon delivery of such Additional Commitment Agreement to
the Administrative Agent, the payment of any fees required in connection
therewith, the satisfaction of any conditions precedent that may be set forth
in such Additional Commitment Agreement and the satisfaction of the other
conditions in this Section 1.16(b) to the reasonable satisfaction of the
Administrative Agent), (ii) the Borrowers shall, in coordination with the
Administrative Agent, repay outstanding Term Loans and/or Revolving Loans of
the Lenders, and incur additional Term Loans and/or Revolving Loans from other
Lenders, in each case so that the Lenders continue to participate in each
Borrowing of Term Loans and Revolving Loans pro rata on the basis
of their respective Term Loan Commitments and Revolving Loan Commitments
(after giving effect to any increase in such Commitments pursuant to this
Section 1.16) and with the Borrowers being obligated to pay the respective
Lenders the costs of the type referred to in (and in accordance with the
provisions of) Section 1.12 as a result of any such repayment and/or Borrowing,
and (iii) the Borrowers shall deliver to the Administrative Agent an opinion,
in form and substance reasonably satisfactory to the Administrative Agent, from
counsel to the Borrowers reasonably satisfactory to the Administrative Agent
and dated such date, covering such matters similar to those set forth in the
opinion of counsel delivered to the Administrative Agent on the Effective Date
pursuant to Section 5.02. The Administrative Agent shall promptly notify each
Lender as to the occurrence of each Additional Commitment Date, and (w) on each
such date, the Total Term Loan Commitment and/or the Total Revolving Loan
Commitment, as applicable, and the Total Commitment under, and for all purposes
of, this Agreement shall be increased by the applicable portion of the
aggregate amount of such Additional Commitments, (x) on each such date,
Schedule I shall be deemed modified to reflect the revised Commitments, (y)
upon surrender of any old Term Loan Notes and/or Revolving Loan Notes by the
respective Additional Lender (or, if lost, a standard lost note indemnity in
form and substance reasonably satisfactory to the

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Borrowers), to the extent
requested by any Additional Lender, a new Term Loan Note and/or Revolving Loan
Note be issued, at the joint and several expense of the Borrowers, to such
Additional Lender, to be in conformity with the requirements of Section 1.06
(with appropriate modifications) to the extent needed to reflect the revised
Commitments of such Lender and (z) on each such date with respect to all
outstanding Letters of Credit and Unpaid Drawings, there shall be an automatic
adjustment to the participations by the Lenders in such Letters of Credit and
Unpaid Drawings to reflect the new Percentages of the Lenders.

          1.17 Maturity Date Extension. So long as the Extension Requirements are
satisfied at the time of the delivery of the notice referred to below, the
Borrowers may, by a written notice delivered to the Administrative Agent prior
to (but not less than 90 days or more then 180 days prior to) the original
Maturity Date, request (pursuant to a single such request) that the original
Maturity Date be extended to the date which is one year after such original
Maturity Date. So long as the Extension Requirements are satisfied on June 29,
2007, the original Maturity Date shall be extended on such date to June 29,
2008 without any further consent of the Lenders. The Administrative Agent shall
notify each Lender of (i) its receipt of the notice of extension described
above and (ii) the effectiveness of any extension of the original Maturity
Date.

          SECTION 2. Letters of Credit.

          2.01 Letters of Credit. (a) Subject to and upon the terms and conditions
set forth herein, any Borrower may request that an Issuing Lender issue, at any
time and from time to time on and after the Effective Date and prior to the
60th day prior to the Maturity Date, (x) for the account of such Borrower and
for the benefit of any holder (or any trustee, agent or other similar
representative for any such holders) of L/C Supportable Obligations of such
Borrower or any of its Subsidiaries, an irrevocable standby letter of credit,
in a form customarily used by such Issuing Lender or in such other form as has
been reasonably approved by such Issuing Lender and (y) for the account of such
Borrower and for the benefit of sellers of goods to such Borrower or any
of its Subsidiaries, an irrevocable trade letter of credit, in a form
customarily used by such Issuing Lender or in such other form as has been
reasonably approved by such Issuing Lender (each such letter of credit issued
pursuant to this Section 2.01, a “Letter of Credit”). All Letters of Credit
shall be denominated in Dollars and shall be issued on a sight basis only; it
being understood, however, that the Borrowers may by written notice (including
facsimile transmission) made to the Administrative Agent and the respective
Issuing Lender as part of the respective Letter of Credit Request, or
subsequent to such Letter of Credit Request so long as such request is made at
least five Business Days’ (or such shorter period as is acceptable to such
Issuing Lender) prior to the date requested for the issuance of such Letter of
Credit, require that any sight draft drawing all or any portion of such Letter
of Credit be accompanied by additional documents or certifications, which
notice shall specify a precise description of the documents and the verbatim
text of any certificates to be presented by the beneficiary of such Letter of
Credit, which if presented by such beneficiary prior to the expiration date of
the Letter of Credit would require the Issuing Lender to make a payment under
such Letter of Credit, although the respective Issuing Lender may, in its
reasonable judgment, require changes in any such documents and certificates to
conform with changes in customary and commercially reasonable practice or law.

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          (b) Subject to and upon the terms and conditions set forth herein, each
Issuing Lender agrees that it will, at any time and from time to time on and
after the Effective Date and prior to the 60th day prior to the Maturity Date,
following its receipt of the respective Letter of Credit Request, issue for the
account of any Borrower or Borrowers, one or more Letters of Credit as are
permitted to remain outstanding hereunder without giving rise to a Default or
an Event of Default, provided that no Issuing Lender shall be under any
obligation to issue any Letter of Credit of the types described above if at the
time of such issuance:

     (i) any order, judgment or decree of any governmental authority or
arbitrator shall purport by its terms to enjoin or restrain such Issuing
Lender from issuing such Letter of Credit or any requirement of law
applicable to such Issuing Lender or any request or directive (whether or
not having the force of law) from any governmental authority with
jurisdiction over such Issuing Lender shall prohibit, or request that
such Issuing Lender refrain from, the issuance of letters of credit
generally or such Letter of Credit in particular or shall impose upon
such Issuing Lender with respect to such Letter of Credit any restriction
or reserve or capital requirement (for which such Issuing Lender is not
otherwise compensated) not in effect on the Effective Date, or any
unreimbursed loss, cost or expense which was not applicable or in effect
with respect to such Issuing Lender as of the date hereof and which such
Issuing Lender reasonably and in good faith deems material to it; or

     (ii) such Issuing Lender shall have received notice from any
Borrower or Borrowers or the Required Lenders prior to the issuance of
such Letter of Credit of the type described in the second sentence of
Section 2.03(b).

          Each Issuing Lender (unless the Issuing Lender is the Administrative
Agent) agrees to provide to the Administrative Agent by facsimile promptly on
the first Business Day of each week the daily aggregate Stated Amount of all
Letters of Credit issued by such Issuing Lender and outstanding during the
immediately preceding week.

          (c) Schedule 2.01(c) sets forth a description of all letters of credit
issued pursuant to the Existing Credit Facility and outstanding on the
Effective Date (and setting forth, with respect to each such letter of credit,
(i) the name of the issuing lender, (ii) the letter of credit number, (iii) the
name(s) of the account party or account parties, (iv) the stated amount, (v)
the name of the beneficiary, (vi) the expiry date and (vii) whether such letter
of credit constitutes a standby letter of credit or a trade letter of credit).
Each such letter of credit, including any extension or renewal thereof (each,
as amended from time to time in accordance with the terms thereof and hereof,
an “Existing Letter of Credit”), shall constitute a Letter of Credit for all
purposes of this Agreement, issued, for purposes of Section 2.04(a), on the
Effective Date. Any Lender hereunder which has issued an Existing Letter of
Credit shall constitute an Issuing Lender for all purposes of this Agreement.

          2.02 Maximum Letter of Credit Outstandings; Final Maturities.
Notwithstanding anything to the contrary contained in this Agreement, (i) no
Letter of Credit shall be issued the Stated Amount of which, when added to the
Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid on
the date of, and prior to the issuance of, the respective Letter of Credit) at
such time would exceed any of (x) $50,000,000, (y) when added to the sum of (I)
the

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aggregate principal amount of all Term Loans then outstanding, (II) the
aggregate principal amount of all Revolving Loans then outstanding, (III) the
aggregate principal amount of all Swingline Loans then outstanding, (IV) the
aggregate principal amount of all Competitive Bid Loans then outstanding and
(V) the aggregate principal amount of all other Unsecured Consolidated Total
Indebtedness of Trizec, an amount equal to the Borrowing Base Amount at such
time (based on the Borrowing Base Certificate last delivered or then being
delivered) or (z) when added to the sum of (I) the aggregate principal amount
of all Revolving Loans then outstanding and (II) the aggregate principal amount
of all Competitive Bid Loans then outstanding and (III) the aggregate principal
amount of all Swingline Loans then outstanding, an amount equal to the Total
Revolving Loan Commitment at such time, (ii) each standby Letter of Credit
shall by its terms terminate on or before the earlier of (x) the date which
occurs 12 months after the date of the issuance thereof (although any such
standby Letter of Credit may be extendible for successive periods of up to 12
months, but not beyond the fifth Business Day prior to the Maturity Date, on
terms acceptable to such Issuing Lender) and (y) five Business Days prior to
the Maturity Date, and (iii) each trade Letter of Credit shall by its terms
terminate on or before the earlier of (x) the date which occurs 180 days after
the date of the issuance thereof and 15 days prior to the Maturity Date.

          2.03 Letter of Credit Requests; Minimum Stated Amount. (a) Whenever a
Borrower desires that a Letter of Credit be issued for its account, such
Borrower shall give the Administrative Agent and the respective Issuing Lender
at least five Business
Days’ (or such shorter period as is acceptable to such Issuing Lender) written
notice thereof (including by way of facsimile transmission). Each notice shall
be in the form of Exhibit F (each a “Letter of Credit Request”). Each such
Letter of Credit Request may be revoked by telephonic notice by such Borrower
to the applicable Issuing Lender and the Administrative Agent at any time prior
to the date of issuance of the Letter of Credit by the applicable Issuing
Lender, which revocation shall be immediately confirmed in writing by such
Borrower to such Issuing Lender and the Administrative Agent by facsimile.

          (b) The making of each Letter of Credit Request shall be deemed to be a
representation and warranty by the Borrowers that such Letter of Credit may be
issued in accordance with, and will not violate the requirements of, Section
2.02. Unless the respective Issuing Lender has received notice from the
Borrowers or the Required Lenders before it issues a Letter of Credit that one
or more of the conditions specified in Section 6 are not then satisfied, or
that the issuance of such Letter of Credit would violate Section 2.02, then
such Issuing Lender shall, subject to the terms and conditions of this
Agreement, issue the requested Letter of Credit for the account of the
requesting Borrower in accordance with such Issuing Lender’s usual and
customary practices. Upon its issuance of or amendment to any Letter of Credit,
the respective Issuing Lender shall promptly notify the Borrowers and the
Administrative Agent, in writing, of such issuance or amendment and such notice
shall be accompanied by a copy of the issued Letter of Credit or amendment.
Notwithstanding anything to the contrary contained in this Agreement, in the
event that a Lender Default of a Defaulting Lender with a Revolving Loan
Commitment exists, no Issuing Lender shall be required to issue any Letter of
Credit unless such Issuing Lender has entered into an arrangement satisfactory
to it and the Borrowers to eliminate such Issuing Lender’s risk with respect to
the participation in Letters of Credit by the Defaulting Lender or Lenders with
Revolving Loan Commitments, including by cash collateralizing such Defaulting
Lender’s or Lenders’ Percentage of the Letter of Credit Outstandings.

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          (c) The initial Stated Amount of each Letter of Credit shall not be less
than $100,000 or such lesser amount as is acceptable to the respective Issuing
Lender.

          2.04 Letter of Credit Participations. (a) Immediately upon the issuance
by each Issuing Lender of any Letter of Credit, such Issuing Lender shall be
deemed to have sold and transferred to each Lender with a Revolving Loan
Commitment, other than such Issuing Lender (each such Lender, in its capacity
under this Section 2.04, a “Participant”), and each such Participant shall be
deemed irrevocably and unconditionally to have purchased and received from such
Issuing Lender, without recourse or warranty, an undivided interest and
participation, to the extent of such Participant’s Percentage, in such Letter
of Credit, each drawing or payment made thereunder and the obligations of the
Borrowers under this Agreement with respect thereto, and any security therefor
or guaranty pertaining thereto. Upon any change in the Commitments or
Percentages of the Lenders pursuant to Sections 1.15, 1.16 or 13.04, it is
hereby agreed that, with respect to all outstanding Letters of Credit and
Unpaid Drawings, there shall be an automatic adjustment to the participations
pursuant to this Section 2.04 to reflect the new Percentages of the assignor
and assignee Lenders and/or Additional Lenders, as the case may be.

          (b) In determining whether to pay under any Letter of Credit issued by it,
no Issuing Lender shall have an obligation relative to the other Lenders other
than to confirm that any documents required to be delivered under such Letter
of Credit appear to have been delivered and that they appear to substantially
comply on their face with the requirements of such Letter of Credit. Any action
taken or omitted to be taken by any Issuing Lender under or in connection with
any Letter of Credit issued by it shall not create for such Issuing Lender any
resulting liability to the Borrowers, any other Credit Party, any Lender or any
other Person unless such action is taken or omitted to be taken with gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

          (c) In the event that any Issuing Lender makes any payment under any
Letter of Credit issued by it and the Borrowers shall not have reimbursed such
amount in full to such Issuing Lender pursuant to Section 2.05(a), such Issuing
Lender shall promptly notify the Administrative Agent, which shall promptly
notify each Participant, of such failure, and, except as provided in the
proviso of the immediately succeeding sentence, each Participant shall promptly
and unconditionally pay to such Issuing Lender the amount of such Participant’s
Percentage of such unreimbursed payment in Dollars and in same day funds. If
the Administrative Agent so notifies, prior to 11:00 A.M. (New York time) on
any Business Day, any Participant required to fund a payment under a Letter of
Credit, such Participant shall make available to the respective Issuing Lender
in Dollars such Participant’s Percentage of the amount of such payment on such
Business Day in same day funds; provided, however, that no Participant shall be
obligated to pay to the respective Issuing Lender its Percentage of such
unreimbursed amount for any wrongful payment made by such Issuing Lender under
a Letter of Credit issued by it as a result of acts or omissions constituting
willful misconduct or gross negligence on the part of such Issuing Lender (as
determined by a court of competent jurisdiction in a final and non-appealable
decision). If and to the extent such Participant shall not have so made its
Percentage of the amount of such payment available to the respective Issuing
Lender, such Participant agrees to pay to such Issuing Lender forthwith on
demand such amount, together with interest thereon, for each day from such date
until the date such amount is paid to such Issuing Lender at the overnight
Federal Funds Rate for the first three days and at the

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interest rate applicable
to Revolving Loans maintained as Base Rate Loans for each day thereafter. The
failure of any Participant to make available to the respective Issuing Lender
its Percentage of any payment under any Letter of Credit shall not relieve any
other Participant of its obligation hereunder to make available to such Issuing
Lender its Percentage of any such payment on the date required, as specified
above, but no Participant shall be responsible for the failure of any other
Participant to make available to such Issuing Lender such other Participant’s
Percentage of any such payment.

          (d) Whenever an Issuing Lender receives a payment of a reimbursement
obligation as to which it has received any payments from the Participants
pursuant to clause (c) above, such Issuing Lender shall pay to each Participant
which has paid its Percentage thereof, in Dollars and in same day funds, an
amount equal to such Participant’s share (based upon the proportionate
aggregate amount originally funded by
such Participant to the aggregate amount funded by all Participants) of
the principal amount of such reimbursement obligation and interest thereon
accruing after the purchase of the respective participations.

          (e) The obligations of the Participants to make payments to each Issuing
Lender with respect to Letters of Credit issued by it shall be irrevocable and
not subject to any qualification or exception whatsoever (except as otherwise
provided in the proviso to the second sentence of Section 2.04(c)) and shall be
made in accordance with the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:

     (i) any lack of validity or enforceability of this Agreement or any
of the other Credit Documents;

     (ii) the existence of any claim, setoff, defense or other right
which either of the Borrowers or any of its respective Subsidiaries may
have at any time against a beneficiary named in a Letter of Credit, any
transferee of any Letter of Credit (or any Person for whom any such
transferee may be acting), the Administrative Agent, any Issuing Lender,
any Participant or any other Person, whether in connection with this
Agreement, any Letter of Credit, the transactions contemplated herein or
any unrelated transactions (including any underlying transaction between
the Borrowers or any Subsidiary of either of the Borrowers and the
beneficiary named in any such Letter of Credit);

     (iii) any draft, certificate or any other document presented under
any Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or
inaccurate in any respect;

     (iv) the surrender or impairment of any security for the performance
or observance of any of the terms of any of the Credit Documents; or

     (v) the occurrence of any Default or Event of Default.

          2.05 Agreement to Repay Letter of Credit Drawings. (a) The Borrowers
jointly and severally agree to reimburse each Issuing Lender, by making payment
to the Administrative Agent in Dollars and in immediately available funds at
the Payment Office, for any payment or

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disbursement made by such Issuing Lender
under any Letter of Credit issued by it (each such amount so paid until
reimbursed, an “Unpaid Drawing”), not later than one Business Day following
receipt by the Borrowers of notice of such payment or disbursement (provided
that no such notice shall be required to be given if a Default or an Event of
Default under Section 10.05 shall have occurred and be continuing, in which
case the Unpaid Drawing shall be due and payable immediately without
presentment, demand, protest or notice of any kind (all of which are hereby
waived by the Borrowers)), with interest on the amount so paid or disbursed by
such Issuing Lender, to the extent not reimbursed prior to 1:00 P.M. (New York
time) on the date of such payment or disbursement, from and including the date
paid or disbursed to but excluding the date such Issuing Lender was reimbursed
by the Borrowers therefor at a rate per annum which shall be the sum of the
Applicable Margin for Revolving Loans
that are maintained as Base Rate Loans plus the Base Rate each as in
effect from time to time; provided, however, to the extent such amounts are not
reimbursed prior to 1:00 P.M (New York time) on the third Business Day
following the receipt by the Borrowers of notice of such payment or
disbursement or following the occurrence of a Default or an Event of Default
under Section 10.05, interest shall thereafter accrue on the amounts so paid or
disbursed by such Issuing Lender (and until reimbursed by the Borrowers) at a
rate per annum which shall be the sum of the Base Rate as in effect from time
to time plus 4.5%, in each such case, with interest to be payable on demand.
Each Issuing Lender shall give the Borrowers prompt written notice of each
Drawing under any Letter of Credit issued by it, provided that the failure to
give any such notice shall in no way affect, impair or diminish the Borrowers’
obligations hereunder.

          (b) The obligations of the Borrowers under this Section 2.05 to reimburse
each Issuing Lender with respect to Unpaid Drawings (including, in each case,
interest thereon) shall be joint and several, absolute and unconditional under
any and all circumstances and irrespective of (i) which Borrower requested any
Letter of Credit or for whose account any Letter of Credit was issued and (ii)
any setoff, counterclaim or defense to payment which the Borrowers or any of
them may have or have had against any Lender (including in its capacity as
issuer of the Letter of Credit or as Participant), including, without
limitation, any defense based upon the failure of any drawing or payment under
a Letter of Credit (each a “Drawing”) to conform to the terms of the Letter of
Credit or any nonapplication or misapplication by the beneficiary of the
proceeds of such Drawing; provided, however, that the Borrowers shall not be
obligated to reimburse the respective Issuing Lender for any wrongful payment
made by such Issuing Lender under a Letter of Credit issued by it as a result
of acts or omissions constituting willful misconduct or gross negligence on the
part of such Issuing Lender (as determined by a court of competent jurisdiction
in a final and non-appealable decision).

          2.06 Increased Costs. If at any time after the Effective Date, the
introduction of or any change in any applicable law, rule, regulation, order,
guideline or request or in the interpretation or administration thereof by the
NAIC or any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any Issuing
Lender or any Participant with any request or directive by the NAIC or by any
such governmental authority, central bank or comparable agency (whether or not
having the force of law), shall either (i) impose, modify or make applicable
any reserve, deposit, capital adequacy or similar requirement against letters
of credit issued by any Issuing Lender or participated in by any Participant,
or (ii) impose on any Issuing Lender or any Participant any other conditions
relating, directly or indirectly, to this Agreement as it pertains to Letters
of

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Credit or their issuance thereof or participation therein; and the result of
any of the foregoing is to increase the cost to any Issuing Lender or any
Participant of issuing, maintaining or participating in any Letter of Credit,
or reduce the amount of any sum received or receivable by any Issuing Lender or
any Participant hereunder or reduce the rate of return on its capital with
respect to Letters of Credit (except for changes in the rate of tax on, or
determined by reference to, the net income or profits or franchise taxes based
on net income of such Issuing Lender or such Participant pursuant to the laws
of the country in which it is organized or in which its principal office or
applicable lending
office is located or any subdivision thereof or therein), then, within 10
days of the delivery of the certificate referred to below to the Borrowers by
such Issuing Lender or such Participant (a copy of which certificate shall be
sent by such Issuing Lender or such Participant to the Administrative Agent),
the Borrowers agree jointly and severally, subject to the provisions of Section
13.17 (to the extent applicable), to pay to such Issuing Lender or such
Participant such additional amount or amounts as will compensate such Issuing
Lender or such Participant for such increased cost or reduction in the amount
receivable or reduction on the rate of return on its capital. Each Issuing
Lender or Participant, upon determining that any additional amounts will be
payable to it pursuant to this Section 2.06, will give prompt written notice
thereof to the Borrowers, which notice shall include a certificate submitted to
the Borrowers by such Issuing Lender or such Participant (a copy of which
certificate shall be sent by such Issuing Lender or such Participant to the
Administrative Agent), setting forth in reasonable detail the basis for the
calculation of such additional amount or amounts necessary to compensate such
Issuing Lender or such Participant. The certificate required to be delivered
pursuant to this Section 2.06 shall, absent manifest error, be final and
conclusive and binding on the Borrowers.

          SECTION 3. Commitment Commissions; Other Fees; Reductions of
Commitments.

          3.01 Fees. (a) (i) For each day during the period from the Effective Date
to but excluding the Term Loan Commitment Expiration Date (or such earlier date
on which the Total Term Loan Commitment has been terminated) on which the
Investment Grade Rating Condition does not exist, the Borrowers jointly and
severally agree to pay to the Administrative Agent for distribution to each
Non-Defaulting Lender with a Term Loan Commitment a commitment commission (the
“Term Loan Commitment Commission”) computed at a rate per annum for each such
day equal to the then Applicable Commitment Commission Percentage on the daily
average of the Unutilized Term Loan Commitment of such Lender as in effect from
time to time. Accrued Term Loan Commitment Commissions shall be due and payable
in arrears on the Term Loan Commitment Expiration Date (or on such earlier date
on which the Total Term Loan Commitment shall have been terminated).

          (ii) For each day during the period from the Effective Date to but
excluding the Term Loan Commitment Expiration Date (or such earlier date on
which the Total Term Loan Commitment has been terminated) on which the
Investment Grade Rating Condition exists, the Borrowers jointly and severally
agree to pay to the Administrative Agent for distribution to each
Non-Defaulting Lender with a Term Loan Commitment a facility fee (the “Term
Loan Facility Fee”) computed at a rate per annum for each such day equal to the
then Applicable Facility Fee Percentage on the daily average of the Term Loan
Commitment of such Lender as in effect from time to time. Accrued Term Loan
Facility Fees shall be due and payable in arrears on the Term

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Loan Commitment Expiration Date (or on such earlier date on which the Total
Term Loan Commitment shall have been terminated).

          (b) (i) For each day during the period from the Effective Date to but
excluding the Maturity Date (or such earlier date on which the Total Revolving
Loan Commitment has been terminated) on which the Investment Grade Condition
does not exist, the Borrowers jointly and severally agree to pay to the
Administrative Agent for distribution to each Non-Defaulting Lender with a
Revolving Loan Commitment a commitment commission (the “Revolving Loan
Commitment Commission”) computed at a rate per annum for each such day equal to
the then Applicable Commitment Commission Percentage on the daily average of
the Unutilized Revolving Loan Commitment of such Lender as in effect from time
to time. Accrued Revolving Loan Commitment Commission shall be due and payable
in arrears on (x) September 30, 2004, (y) each Quarterly Payment Date
thereafter and (z) the Maturity Date (or on such earlier date on which the
Total Revolving Loan Commitment shall have been terminated).

          (ii) For each day during the period from the Effective Date to but
excluding the Maturity Date (or such earlier date on which the Total Revolving
Loan Commitment has been terminated) on which the Investment Grade Condition
exists, the Borrowers jointly and severally agree to pay to the Administrative
Agent for distribution to each Non-Defaulting Lender with a Revolving Loan
Commitment a facility fee (the “Revolving Loan Facility Fee”) computed at a
rate per annum for each such day equal to the then Applicable Facility Fee
Percentage on the daily average of the Revolving Loan Commitment of such Lender
as in effect from time to time. Accrued Revolving Loan Facility Fees shall be
due and payable in arrears on (x) September 30, 2004, (y) each Quarterly
Payment Date thereafter and (z) the Maturity Date (or on such earlier date on
which the Total Revolving Loan Commitment shall have been terminated).

          (c) The Borrowers jointly and severally agree to pay to the Administrative
Agent for distribution to each Lender (based on each such Lender’s respective
Percentage) a fee in respect of each Letter of Credit issued hereunder (the
“Letter of Credit Fee”) for the period from and including the date of issuance
of such Letter of Credit to and including the date of termination or expiration
of such Letter of Credit, computed at a rate per annum equal to the Applicable
Margin then in effect for Revolving Loans maintained as Eurodollar Rate Loans
on the daily Stated Amount of such Letter of Credit. Accrued Letter of Credit
Fees shall be due and payable in arrears on (x) September 30, 2004, (y) each
Quarterly Payment Date thereafter and (z) the first day on or after the
termination of the Total Commitment upon which no Letters of Credit remain
outstanding.

          (d) The Borrowers jointly and severally agree to pay to each Issuing
Lender, for its own account, a facing fee in respect of each Letter of Credit
issued by such Issuing Lender hereunder (the “Facing Fee”) for the period from
and including the date of issuance of such Letter of Credit to and including
the date of the termination or expiration of such Letter of Credit, computed at
a rate per annum equal to 1/8 of 1% on the daily Stated Amount of such Letter
of Credit, provided that in any event the minimum amount of the Facing Fee
payable in any 12 month period for each Letter of Credit shall be $500; it
being agreed that, on the date of issuance of any Letter of Credit and on each
anniversary thereof prior to the termination of such Letter of Credit, if $500
will exceed the amount of Facing Fees that will accrue with respect to

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such Letter of Credit for the immediately succeeding 12 month period, the full
$500 shall be payable on the date of issuance of such Letter of Credit and on
each such anniversary thereof. Except as otherwise provided in the proviso to
the immediately preceding sentence, accrued Facing Fees shall be due and
payable in arrears on (x) September 30, 2004, (y) each Quarterly Payment Date
thereafter and (z) the first day on or after the termination of the Total
Commitment upon which no Letters of Credit remain outstanding.

          (e) The Borrowers jointly and severally agree to pay to each Issuing
Lender, for its own account, upon each payment under, issuance of, or amendment
to, any Letter of Credit, such amount as shall at the time of such event be the
administrative charge and the reasonable expenses which such Issuing Lender is
generally imposing in connection with such occurrence with respect to letters
of credit.

          (f) The Borrowers jointly and severally agree to pay such other fees as
have been agreed to in writing by the Borrowers, DBTCA and Deutsche Bank
Securities Inc.

          (g) On the date of the extension of the Maturity Date pursuant to Section
1.17, the Borrowers jointly and severally agree to pay to the Administrative
Agent for the account of each Lender a non-refundable cash extension fee (the
“Extension Fee”) in an amount equal to 25 basis points (0.25%) of an amount
equal to the sum of (i) the aggregate principal amount of all Term Loans made
by each such Lender and outstanding on the such date plus (ii) the Revolving
Loan Commitment of each such Lender as in effect on such date.

          3.02 Voluntary Termination of Unutilized Commitments. (a) Upon at least
three Business Days’ prior notice to the Administrative Agent at the Notice
Office (which notice the Administrative Agent shall promptly transmit to each
of the Lenders), the Borrowers shall have the right, at any time or from time
to time, without premium or penalty, to terminate (i) the Total Unutilized Term
Loan Commitment and/or (ii) the Total Unutilized Revolving Loan Commitment, in
each case in whole or in part, in integral multiples of $5,000,000 in the case
of partial reductions, provided that each such reduction of the Total
Unutilized Term Loan Commitment shall apply proportionately to permanently
reduce the Term Loan Commitment of each Lender with such a Commitment and each
such reduction of the Total Unutilized Revolving Loan Commitment shall apply
proportionately to permanently reduce the Revolving Loan Commitment of each
Lender with such a Commitment.

          (b) In the event of certain refusals by a Lender to consent to certain
proposed changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrowers may, upon five Business
Days’ prior written notice to the Administrative Agent at the Notice Office
(which notice the Administrative Agent shall promptly transmit to each of the
Lenders), terminate the entire Term Loan Commitment and/or Revolving Loan
Commitment, as applicable, of such Lender so long
as all Loans, together with accrued and unpaid interest, Fees and all
other amounts owing to such Lender (other than amounts owing in respect of any
Tranche of Loans maintained by such Lender if such Loans are not being repaid
pursuant to Section 13.12(b)) are repaid concurrently with the effectiveness of
such termination pursuant to Section 4.01(b) (at which time Schedule I shall be
deemed modified to reflect such changed amounts), and at such time, unless the
respective Lender continues to have outstanding Loans hereunder

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such Lender
shall no longer constitute a “Lender” for purposes of this Agreement, except
with respect to indemnifications under this Agreement for periods when such
Lender was a “Lender” under this Agreement (including, without limitation,
Sections 1.11, 1.12, 4.04, 13.01 and 13.06), which shall survive as to such
repaid Lender.

          3.03 Mandatory Reduction of Commitments. The Total Commitment (and the
Term Loan Commitment and/or Revolving Loan Commitment of each Lender) shall
terminate in its entirety on the earliest of (i) the date on which a Change of
Control occurs, (ii) the date upon which any of the Borrowers enters into any
transaction of merger or consolidation, other than any merger or consolidation
permitted by Section 9.02(a), and (iii) the Maturity Date.

          SECTION 4. Prepayments; Payments; Taxes.

          4.01 Voluntary Prepayments. (a) The Borrowers shall have the right to
prepay the Loans (other than Competitive Bid Loans) without premium or penalty,
in whole or in part at any time and from time to time on the following terms
and conditions: (i) the Borrowers shall give the Administrative Agent prior to
12:00 Noon (New York time) at the Notice Office (x) in the case of Base Rate
Loans, at least one Business Day’s prior written notice (or same day notice in
the case of a prepayment of Swingline Loans) (or telephonic notice promptly
confirmed in writing) of its intent to prepay such Base Rate Loans and (y) in
the case of Eurodollar Rate Loans, at least three Business Days’ prior written
notice (or telephonic notice promptly confirmed in writing) of its intent to
prepay such Eurodollar Rate Loans, whether Term Loans, Revolving Loans and/or
Swingline Loans shall be prepaid, the principal amount of such prepayment and
the Types of Loans and Tranches to be prepaid and, in the case of Eurodollar
Rate Loans, the specific Borrowing or Borrowings pursuant to which such
Eurodollar Rate Loans were made, which notice the Administrative Agent shall
promptly transmit to each of the Lenders, (ii) each prepayment of Loans
pursuant to this Section 4.01(a) shall be in an aggregate principal amount of
at least $1,000,000, provided that if any partial prepayment of Eurodollar Rate
Loans made pursuant to any Borrowing shall reduce the outstanding Eurodollar
Rate Loans made pursuant to such Borrowing to an amount less than the Minimum
Borrowing Amount applicable thereto, then such Borrowing may not be continued
as a Borrowing of Eurodollar Rate Loans and any election of an Interest Period
with respect thereto given by the Borrowers shall have no force or effect,
(iii) each prepayment pursuant to this Section 4.01(a) in respect of any
Tranche of Loans made pursuant to a Borrowing shall be applied pro rata among
such Loans, and (iv) each prepayment of Eurodollar Rate Loans made pursuant to
this Section 4.01 on a day which is not the last day of an Interest Period
applicable thereto shall be accompanied by the payment of all amounts owing in
connection therewith pursuant to Section 1.12. The Borrowers shall not have the
right to prepay any Competitive Bid Loan pursuant to this
Section 4.01(a) without the consent of the Lender that made such
Competitive Bid Loan.

          (b) In the event of certain refusals by a Lender to consent to certain
proposed changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrowers may, upon five Business
Days’ prior written notice to the Administrative Agent at the Notice Office
(which notice the Administrative Agent shall promptly transmit to each of the
Lenders), repay all Loans, together with accrued and unpaid interest, Fees and
all other amounts owing to such Lender under this Agreement (including under
Section 1.12) in accordance with

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said Section 13.12(b) so long as (A) the Term
Loan Commitment and/or the Revolving Loan Commitment, as applicable, of such
Lender is terminated concurrently with such repayment pursuant to Section
3.02(b) (at which time Schedule I shall be deemed modified to reflect the
changed Commitments) and (B) the consents required by Section 13.12(b) in
connection with the repayment pursuant to this Section 4.01(b) have been
obtained.

          4.02 Mandatory Repayments. (a) On any day on which the sum of the
aggregate outstanding principal amount of all Term Loans exceeds the Total Term
Loan Commitment as then in effect, the Borrowers shall prepay on such day the
principal of Term Loans in an amount equal to such excess.

          (b) On any day on which the sum of (I) the aggregate outstanding principal
amount of all Revolving Loans, (II) the aggregate outstanding principal amount
of all Competitive Bid Loans, (III) the aggregate outstanding principal amount
of all Swingline Loans and (IV) the aggregate amount of all Letter of Credit
Outstandings exceeds the Total Revolving Loan Commitment as then in effect, the
Borrowers shall prepay on such day the principal of Swingline Loans and, after
all Swingline Loans have been repaid in full (or if no Swingline Loans are
outstanding), Revolving Loans in an amount equal to such excess. If, after
giving effect to the prepayment of all outstanding Swingline Loans and
Revolving Loans, the sum of (I) the aggregate outstanding principal amount of
all Competitive Bid Loans and (II) the aggregate amount of all Letter of Credit
Outstandings exceeds the Total Revolving Loan Commitment as then in effect, the
Borrowers shall prepay on such date the principal of Competitive Bid Loans in
an amount equal to such excess. If, after giving effect to the prepayment of
all outstanding Loans, the aggregate amount of all Letter of Credit
Outstandings exceeds the Total Revolving Loan Commitment as then in effect, the
Borrowers shall pay to the Administrative Agent at the Payment Office on such
day an amount of cash and/or Cash Equivalents equal to the amount of such
excess, such cash and/or Cash Equivalents to be held as security for all
Obligations of the Borrowers to each Issuing Lender and the Lenders hereunder
in a cash collateral account to be established by the Administrative Agent.

          (c) (i) If on any day (A) the sum of (I) the aggregate outstanding
principal amount of all Term Loans, (II) the aggregate outstanding principal
amount of all Revolving Loans, (III) the aggregate outstanding principal amount
of all Swingline Loans, (IV) the aggregate outstanding principal amount of all
Competitive Bid Loans, (V) the aggregate amount of all Letter of Credit
Outstandings and (VI) the aggregate outstanding principal amount of all other
Unsecured Consolidated Total Indebtedness of
Trizec exceeds the Borrowing Base Amount at such time (based on the
Borrowing Base Certificate last delivered or then being delivered) (such
excess, the “Borrowing Base Amount Deficiency”) or (B) a Default exists under
Section 9.14 (such Default, a “Section 9.14 Default”), the Borrowers shall,
within 10 days thereafter (or on such day to the extent required by Section
8.13), either (x) prepay outstanding Loans and/or cash collateralize
outstanding Letters of Credit in the order provided in clause (c)(ii) below in
an amount sufficient to eliminate such Borrowing Base Amount Deficiency or to
cure such Section 9.14 Default, as applicable, (y) add one or more Borrowing
Base Properties to the Borrowing Base in accordance with the procedures set
forth in this Agreement which would have the effect (i) in the case of a
Borrowing Base Amount Deficiency, of increasing the Borrowing Base Value in an
aggregate amount sufficient to eliminate such Borrowing Base Amount Deficiency
or (ii) in the case of a Section 9.14 Default, of increasing the Borrowing

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Base
Property NOI in an amount sufficient to cure such Section 9.14 Default or (z)
effect a combination of the actions described in preceding clauses (x) and (y)
so as to eliminate such Borrowing Base Amount Deficiency or Section 9.14
Default, as applicable (it being understood that, if any Default or Event of
Default then exists (other than, in the case of Section 4.02(c)(i)(A) the
Default resulting from the Borrowing Base Amount Deficiency in question, and in
the case of Section 4.02(c)(i)(B) the Section 9.14 Default in question), the
Borrowers shall be required to take the actions described in preceding clause
(x)).

          (ii) To the extent that the Borrowers elect (or are required) to prepay
outstanding Loans and/or cash collateralize outstanding Letters of Credit to
eliminate any Borrowing Base Amount Deficiency or to cure any Section 9.14
Default as provided in clause (c)(i) above, the Borrowers shall (1) first,
prepay principal of outstanding Swingline Loans, (2) second, after all
Swingline Loans have been repaid in full (or if no Swingline Loans are
outstanding), prepay principal of outstanding Term Loans and Revolving Loans as
designated by the Borrowers, (3) third, after all Swingline Loans, Revolving
Loans and Term Loans have been paid in full, prepay principal of outstanding
Competitive Bid Loans, and (4) fourth, pay to the Administrative Agent at the
Payment Office cash and/or Cash Equivalents and with such cash and/or Cash
Equivalents to be held as security for all Obligations of the Borrowers to each
Issuing Lender and the Lenders hereunder in a cash collateral account to be
established by the Administrative Agent.

          (d) Notwithstanding anything to the contrary contained in this Agreement
or in any other Credit Document, (i) all then outstanding Loans (other than
Swingline Loans) shall be repaid in full on the Maturity Date, (ii) all then
outstanding Loans shall be repaid in full on the date on which (x) any of the
Borrowers enters into any transaction of merger or consolidation (other than
any merger or consolidation permitted by Section 9.02(a)) or (y) a Change of
Control occurs, (iii) each Borrowing of Swingline Loans shall be repaid in full
within five Business Days after the date of Borrowing thereof and (iv) all then
outstanding Swingline Loans shall be repaid in full on the Swingline Expiry
Date.

          (e) With respect to each repayment of Loans required by Sections 4.02(a),
(b) and (c), the Borrowers may designate the Types of Term Loans and/or
Revolving Loans which are to be repaid and, in the case of Eurodollar Rate
Loans, the specific Borrowing or Borrowings pursuant to which such Terms Loans
and/or Revolving Loans were made, provided that: (i) repayments of Eurodollar
Rate Loans pursuant to this Section 4.02 may only be made on the last day of an
Interest Period applicable thereto unless all Eurodollar Rate Loans with
Interest Periods ending on such date of required repayment and all Base Rate
Loans have been paid in full; (ii) if any repayment of Eurodollar Rate Loans
constituting a single Borrowing shall reduce the outstanding Eurodollar Rate
Loans constituting such Borrowing to an amount less than the Minimum Borrowing
Amount applicable thereto, such Borrowing shall be converted at the end of the
then current Interest Period into a Borrowing of Base Rate Loans unless such
Borrowing, together with any other Term Loans and/or Revolving Loans maintained
as Base Rate Loans (or portion thereof) or Eurodollar Rate Loans converted or
continued on the same date to Eurodollar Rate Loans with the same Interest
Period as the Interest Period to which such Borrowing is then being continued,
exceeds such Minimum Borrowing Amount; (iii) each repayment of any Term Loans
or Revolving Loans made pursuant to a Borrowing shall be applied pro rata among
such Term Loans or Revolving Loans, respectively; and (iv) each repayment of
Competitive Bid

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Loans shall be applied pro rata among all outstanding
Competitive Bid Loans. In the absence of a designation by the Borrowers as
described in the preceding sentence, the Administrative Agent shall, subject to
the above, make such designation in its sole discretion.

          4.03 Method and Place of Payment. Except as otherwise specifically
provided herein, all payments under this Agreement or under any Note shall be
made to the Administrative Agent for the account of the Lender or Lenders
entitled thereto not later than 1:00 P.M. (New York time) on the date when due
and shall be made in Dollars in immediately available funds at the Payment
Office. The Administrative Agent will thereafter cause to be distributed on
the same day (if payment was actually received by the Administrative Agent
prior to 1:00 P.M. (New York time)) like funds relating to the payment of
principal or interest ratably to the Lenders entitled thereto. Any payments
under this Agreement or under any Note which are made later than 1:00 P.M. (New
York time) on any day shall be deemed to have been made on the next succeeding
Business Day. Whenever any payment to be made hereunder or under any Note shall
be stated to be due on a day which is not a Business Day, the due date thereof
shall be extended to the next succeeding Business Day and, with respect to
payments of principal, interest shall be payable at the applicable rate during
such extension.

          4.04 Net Payments. (a) All payments made by the Borrowers hereunder, under
any Note or under any other Credit Document will be made without setoff,
counterclaim or other defense. Except as provided in Section 4.04(b), all such
payments will be made free and clear of, and without deduction or withholding
for, any present or future taxes, levies, imposts, duties, fees, assessments or
other charges of whatever nature now or hereafter imposed by any jurisdiction
or by any political subdivision or taxing authority thereof or therein with
respect to such payments (but excluding, except as provided in the second
succeeding sentence, any tax imposed on or measured by the net income or net
profits or franchise taxes based on net income of a Lender pursuant to the laws
of the country in which it is organized or the country in which the principal
office or applicable lending office of such Lender is located or any
subdivision thereof or therein)
and all interest, penalties or similar liabilities with respect thereto
(all such non-excluded taxes, levies, imposts, duties, fees, assessments or
other charges being referred to collectively as “Taxes”). If any Taxes are so
levied or imposed, the Borrowers jointly and severally agree, subject to
Section 13.17 (to the extent applicable), to pay the full amount of such Taxes,
and such additional amounts as may be necessary so that every payment of all
amounts due under this Agreement, under any Note or under any other Credit
Document, after withholding or deduction for or on account of any Taxes, will
not be less than the amount provided for herein, in such Note or in such other
Credit Document. If any amounts are payable in respect of Taxes pursuant to the
preceding sentence, the Borrowers jointly and severally agree to reimburse each
Lender, within 10 days of the written request of such Lender, for taxes imposed
on or measured by the net income and net profits and franchise taxes imposed on
net income of such Lender pursuant to the laws of the country in which it is
organized or the country in which the principal office or applicable lending
office of such Lender is located or under the laws of any political subdivision
or taxing authority of any such country in which it is organized or the country
in which the principal office or applicable lending office of such Lender is
located and for any withholding of taxes as such Lender shall determine are
payable by, or withheld from, such Lender in respect of such amounts so paid to
or on behalf of such Lender pursuant to the preceding sentence and in respect
of any amounts paid to or on behalf of such Lender pursuant to this sentence.
If the Borrowers pay any additional amount under this Section 4.04 to

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a Lender
and such Lender determines in its sole discretion that it has actually received
or realized in connection therewith any refund or any reduction of, or credit
against, its liabilities for Taxes in or with respect to the taxable year in
which the additional amount is paid (a “Tax Benefit”), such Lender shall pay to
the Borrowers an amount that the Lender shall, in its sole discretion,
determine is equal to the net benefit, after tax, which was obtained by such
Lender in such year as a consequence of such Tax Benefit; provided, however,
that (i) any Lender may determine, in its sole discretion consistent with the
policies of such Lender, whether to seek a Tax Benefit; (ii) any Taxes that are
imposed on a Lender as a result of a disallowance or reduction (including
through the expiration of any tax credit carryover or carryback of such Lender
that otherwise would not have expired) of any Tax Benefit with respect to which
such Lender has made a payment to the Borrowers pursuant to this Section
4.04(a) shall be treated as Taxes for which the Borrowers are obligated to
indemnify such Lender pursuant to this Section 4.04 without any exclusions or
defenses; and (iii) nothing in this Section 4.04(a) shall require any Lender to
disclose any confidential information to the Borrowers (including, without
limitation, such Lender’s tax returns). The Borrowers will furnish to the
Administrative Agent within 45 days after the date the payment of any Taxes is
due pursuant to applicable law certified copies of tax receipts evidencing such
payment by the Borrowers. The Borrowers jointly and severally agree to
indemnify and hold harmless each Lender, and reimburse such Lender within 10
days of its written request, for the amount of any Taxes so levied or imposed
and paid by such Lender.

          (b) Each Lender that is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) agrees to deliver to the Borrowers
and the Administrative Agent on or prior to the Effective Date, or in the case
of a Lender that is an assignee or transferee of an interest under this
Agreement pursuant to Sections 1.15, 1.16 or 13.04 (unless the respective
Lender was already a Lender hereunder immediately
prior to such assignment or transfer), on the date of such assignment or
transfer to such Lender, (i) two accurate and complete original signed copies
of Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a
complete exemption under an income tax treaty) (or successor forms) certifying
to such Lender’s entitlement as of such date to a complete exemption from
United States withholding tax with respect to payments to be made under this
Agreement and under any Note, or (ii) if the Lender is not a “bank” (within the
meaning of Section 881(c)(3)(A) of the Code) and cannot deliver either Internal
Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete
exemption under an income tax treaty) (or successor forms) pursuant to clause
(i) above, (x) a certificate substantially in the form of Exhibit G (any such
certificate, a “Section 4.04(b)(ii) Certificate”) and (y) two accurate and
complete original signed copies of Internal Revenue Service Form W-8BEN (with
respect to the portfolio interest exemption) (or successor form) certifying to
such Lender’s entitlement to a complete exemption from United States
withholding tax with respect to payments of interest to be made by the
Borrowers under this Agreement and under any Note. In addition, each Lender
agrees that from time to time after the Effective Date, whenever a lapse in
time or change in circumstances renders the previous certification obsolete or
inaccurate in any material respect, it will deliver to the Borrowers and the
Administrative Agent two new accurate and complete original signed copies of
Internal Revenue Service Form W-8ECI, Form W-8BEN (with respect to the benefits
of any income tax treaty), or Form W8BEN (with respect to the portfolio
interest exemption) and a Section 4.04(b)(ii) Certificate, as the case may be,
and such other forms as may be required in order to confirm or establish the
entitlement of such Lender to a continued exemption from or reduction in United
States withholding tax with respect to payments by the Borrowers under this
Agreement and

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any Note, or it shall immediately notify the Borrowers and the
Administrative Agent of its inability to deliver any such Form or Certificate
in which case such Lender shall not be required to deliver any such Form or
Certificate pursuant to this Section 4.04(b). Notwithstanding anything to the
contrary contained in Section 4.04(a), but subject to Section 13.04(b) and the
immediately succeeding sentence, (x) the Borrowers shall be entitled, to the
extent they are required to do so by law, to deduct or withhold income or
similar taxes imposed by the United States (or any political subdivision or
taxing authority thereof or therein) from interest, fees or other amounts
payable hereunder for the account of any Lender which is not a United States
person (as such term is defined in Section 7701(a)(30) of the Code) for U.S.
Federal income tax purposes to the extent that such Lender has not provided to
the Borrowers U.S. Internal Revenue Service Forms that establish a complete
exemption from such deduction or withholding and (y) the Borrowers shall not be
obligated pursuant to Section 4.04(a) hereof to gross-up payments to be made to
a Lender in respect of income or similar taxes imposed by the United States if
(I) such Lender has not provided to the Borrowers the Internal Revenue Service
Forms required to be provided to the Borrowers pursuant to this Section 4.04(b)
or (II) in the case of a payment, other than interest, to a Lender described in
clause (ii) above, to the extent that such forms do not establish a complete
exemption from withholding of such taxes. Notwithstanding anything to the
contrary contained in the preceding sentence or elsewhere in this Section 4.04
and except as set forth in Section 13.04(b), the Borrowers jointly and
severally agree to pay additional amounts and to indemnify each Lender in the
manner set forth in Section 4.04(a) (without regard to the identity of the
jurisdiction
requiring the deduction or withholding) in respect of any amounts deducted
or withheld by it as described in the immediately preceding sentence as a
result of any changes that are effective after the Effective Date in any
applicable law, treaty, governmental rule, regulation, guideline or order, or
in the interpretation thereof, relating to the deducting or withholding of
income or similar Taxes (but, in the case of any amount withheld or deducted by
the government of the United States or a political subdivision thereof, only if
such Lender has provided the Borrowers the appropriate Internal Revenue Service
Forms (and, if applicable, a Section 4.04(b)(ii) Certificate) required to be
provided pursuant to the foregoing provisions of this Section 4.04(b), if
entitled to a reduced rate of withholding or deduction, and in such event, the
payment (whether as an additional amount or under the indemnity) shall only be
for the amount in excess of such reduced rate of withholding or deduction).

          SECTION 5. Conditions Precedent to the Effective Date. The occurrence of
the Effective Date pursuant to Section 13.10 is subject to the satisfaction of
the following conditions:

          5.01 Execution of Agreement; Notes. On or prior to the Effective Date, (i)
this Agreement shall have been executed and delivered as provided in Section
13.10 and (ii) there shall have been delivered to the Administrative Agent for
the account of each of the Lenders which has requested the same, the
appropriate Note or Notes executed by the Borrowers in the amount, maturity and
as otherwise provided herein.

          5.02 Opinion of Counsel. On the Effective Date, the Administrative Agent
shall have received from Piper Rudnick LLP, counsel to the Credit Parties, an
opinion covering the matters set forth in Exhibit H, addressed to the
Administrative Agent and each of the Lenders and dated the Effective Date.

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          5.03 Corporate Documents; Proceedings; etc. (a) On the Effective Date,
the Administrative Agent shall have received certificates from each Credit
Party, dated the Effective Date, signed by the president, any vice-president or
a Senior Financial Officer of such Credit Party and attested to by the
secretary or any assistant secretary of such Credit Party or its general
partner or managing member, as the case may be, in the form of Exhibit I with
appropriate insertions, together with copies of the certificate of
incorporation and by-laws (or equivalent organizational documents) of such
Credit Party and the resolutions of such Credit Party referred to in such
certificate, and all of the foregoing shall be reasonably acceptable to the
Administrative Agent.

          (b) All Company and legal proceedings and all instruments and agreements
in connection with the transactions contemplated by this Agreement and the
other Credit Documents shall be reasonably satisfactory in form and substance
to the Administrative Agent and the Lenders, and the Administrative Agent shall
have received all information and copies of all documents and papers, including
records of corporate proceedings, governmental approvals, good standing
certificates and bring-down telegrams or facsimiles, if any, which the
Administrative Agent reasonably may have requested in connection therewith,
such documents and papers where appropriate to be certified by proper corporate
or governmental authorities.

          5.04 Adverse Change, etc. (a) On or prior to the Effective Date, nothing
shall have occurred since March 31, 2004 (and neither the Administrative Agent
nor the Lenders shall have become aware of any facts, conditions or other
information not previously known) which the Administrative Agent or the Lenders
shall determine has had, or could reasonably be expected to have, a Material
Adverse Effect.

          (b) All necessary governmental (domestic and foreign) and third party
approvals and/or consents in connection with the transactions contemplated by
the Credit Documents and otherwise referred to herein or therein shall have
been obtained and remain in effect, and all applicable waiting periods shall
have expired without any action being taken by any competent authority which
restrains, prevents, or imposes materially adverse conditions upon, the
consummation of the transactions contemplated by the Credit Documents or
otherwise referred to herein or therein. Additionally, there shall not exist
any judgment, order, injunction or other restraint issued or filed or a hearing
seeking injunctive relief or other restraint pending or notified prohibiting or
imposing materially adverse conditions upon the transactions contemplated by
the Credit Documents.

          5.05 Litigation. On the Effective Date, no litigation by any entity
(private or governmental) shall be pending or threatened with respect to this
Agreement, any other Credit Document or any documentation executed in
connection herewith or therewith or the transactions contemplated hereby or
thereby, or which the Administrative Agent or the Lenders shall determine has
had, or could reasonably be expected to have, a Material Adverse Effect.

          5.06 Financial Statements. On or prior to the Effective Date, the
Administrative Agent shall have received true and correct copies of the
historical financial statements referred to in Section 7.05(a), which
historical financial statements shall be in form and substance satisfactory to
the Administrative Agent and the Lenders.

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          5.07 Subsidiaries Guaranty. On the Effective Date, each Subsidiary
Guarantor shall have duly authorized, executed and delivered the Subsidiaries
Guaranty in the form of Exhibit J (as amended, modified or supplemented from
time to time, the “Subsidiaries Guaranty”), and the Subsidiaries Guaranty shall
be in full force and effect.

          5.08 Solvency Certificate. On the Effective Date, each of the Borrowers
shall have delivered to the Administrative Agent a solvency certificate from a
Senior Financial Officer of such Borrower in the form of Exhibit K.

          5.09 Initial Borrowing Base Certificate. On the Effective Date, the
Administrative Agent shall have received the initial Borrowing Base
Certificate meeting the requirements of Section 8.01(j).

          5.10 Subordination Agreement. On the Effective Date, each Credit Party and
each obligee in respect of any Affiliate Debt shall have duly authorized,
executed and delivered the Affiliate Debt and Subordination Agreement in the
form of Exhibit L (as amended, modified or supplemented from time to time, the
“Subordination Agreement”), and the Subordination Agreement shall be in full
force and effect.

          5.11 Fees etc. On the Effective Date, the Borrowers shall have paid to
the Administrative Agent and each Lender all costs, fees and expenses
(including, without limitation, reasonable legal fees and expenses) payable to
the Administrative Agent and such Lender to the extent then due.

          5.12 Refinancing. On the Effective Date, all Indebtedness not permitted
pursuant to Section 9.04, including, without limitation, all Indebtedness
outstanding under the Existing Credit Facility (other than (x) obligations
pursuant to indemnification and other provisions of the Existing Credit
Facility which by their terms survive the termination of the Existing Credit
Facility and (y) reimbursement and all other obligations in respect of the
Existing Letters of Credit), shall have been repaid in full, all commitments in
respect thereof shall have been terminated and all Liens and guaranties in
connection therewith shall have been terminated. The Administrative Agent shall
have received satisfactory evidence that the matters set forth in the
immediately preceding sentence have been satisfied as of the Effective Date.

          The occurrence of the Effective Date shall constitute a representation and
warranty by the Borrowers to the Administrative Agent and each of the Lenders
that all conditions specified in this Section 5 exist as of that time. All of
the certificates, legal opinions and other documents and papers referred to in
this Section 5, unless otherwise specified, shall be delivered to the
Administrative Agent at the Notice Office for the account of each of the
Lenders and in sufficient counterparts or copies for each of the Lenders and
shall be in form and substance satisfactory to the Administrative Agent and the
Lenders.

          SECTION 6. Conditions Precedent to All Credit Events. The obligation of
each Lender to make Loans (including Loans made on the Effective Date), and the
obligation of each Issuing Lender to issue Letters of Credit (including Letters
of Credit issued on the Effective Date), is subject, at the time of each such
Credit Event (except as hereinafter indicated), to the satisfaction of the
following conditions:

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          6.01 Effective Date. The Effective Date shall have occurred.

          6.02 No Default; Representations and Warranties. At the time of each such
Credit Event and also after giving effect thereto, (i) there shall exist no
Default or Event of Default and (ii) all representations and warranties
contained herein and in the other Credit Documents shall be true and correct in
all material respects with the same effect as though such representations and
warranties had been made on such date (it being understood and agreed that any
representation or warranty which by its terms is made as of a specified date
shall be required to be true and correct in all material respects only as of
such specified date).

          6.03 Notice of Borrowing; Letter of Credit Request. (a) Prior to the
making of each Loan (other than a Loan made pursuant to a Mandatory Borrowing,
a Competitive Bid Borrowing or a Swingline Loan), the Administrative Agent
shall have received a Notice of Borrowing meeting the requirements of Section
1.03(a). Prior to the making of each Swingline Loan, the Swingline Lender shall
have received the notice
referred to in Section 1.03(b)(i). Prior to the making of each Competitive
Bid Loan, the Administrative Agent shall have received a Notice of Competitive
Bid Borrowing meeting the requirements of Section 1.04(a).

          (b) Prior to the issuance of each Letter of Credit, the Administrative
Agent and the respective Issuing Lender shall have received a Letter of Credit
Request meeting the requirements of Section 2.03.

          6.04 Change of Control. (a) A Change of Control shall not have occurred
at the time of such Credit Event.

          (b) Such Credit Event shall not occur (x) during the 60 day period
referred to in clause (i)(A) of the definition of Change of Control or (y) so
long as Trizec Canada (and/or one or more Wholly-Owned Subsidiaries of Trizec
Canada) has the power to elect a majority of the directors of Trizec at the
time of such Credit Event, during the 60 day period referred to in clause
(i)(y)(A) of the definition of Trizec Canada Control Requirements; provided,
however, that this Section 6.04(b) shall not apply to such Credit Event if (A)
(i) in the case of clause (i)(A) of the definition of Change of Control, the
applicable Person or “group” (within the meaning of Sections 13(d) and 14(d)
under the Exchange Act, as in effect on the Effective Date) has reduced its
beneficial ownership to less than 25% (30% in the case of Southeastern Asset
Management and 45% in the case of the institutional lenders described in such
clause (i)(A)) on a fully diluted basis of the voting and/or economic interest
in the capital stock of Trizec at or prior to the time of such Credit Event or
(ii) in the case of clause (i)(y)(A) of the definition of Trizec Canada Control
Requirements, the applicable Person or “group” (within the meaning of Sections
13(d) and 14(d) under the Exchange Act, as in effect on the Effective Date) has
reduced its beneficial ownership to less than 25% (30% in the case of CPPIB) on
a fully diluted basis of the voting and/or economic interest in the capital
stock of Trizec Canada at or prior to the time of such Credit Event, or (B)
after giving effect to such Credit Event, the sum of (a) the aggregate
outstanding principal amount of all Term Loans, (b) the aggregate outstanding
principal amount of all Revolving Loans, (c) the aggregate outstanding
principal amount of all Swingline Loans and (d) the aggregate amount of all
Letter of Credit Outstandings does not exceed by more than $25,000,000 an
amount equal to the sum of (i) the aggregate principal amount of all Term Loans
outstanding immediately prior to the commencement of any such 60 day period,
(ii) the

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aggregate outstanding principal amount of all Revolving Loans (iii)
the aggregate principal amount of all Swingline Loans outstanding immediately
prior to the commencement of any such 60 day period and (iv) the aggregate
amount of all Letter of Credit Outstandings immediately prior to the
commencement of any such 60 day period.

          SECTION 7. Representations, Warranties and Agreements. In order to induce
the Lenders to enter into this Agreement and to make the Loans, and issue (or
participate in) the Letters of Credit as provided herein, each of the Borrowers
makes the following representations, warranties and agreements, all of which
shall survive the execution and delivery of this Agreement and the making of
the Loans and the issuance of the Letters of Credit, with the occurrence of the
Effective Date and each Credit Event
on or after the Effective Date deemed to constitute a representation and
warranty that the matters specified in this Section 7 are true and correct in
all material respects on the Effective Date and on the date of each such Credit
Event (it being understood and agreed that any representation or warranty which
by its terms is made as of a specified date shall be required to be true and
correct in all material respects only as of such specified date).

          7.01 Company and Other Status. Each of the Borrowers and each Subsidiary
of each of the Borrowers (i) is a duly organized and validly existing Company
in good standing under the laws of the jurisdiction of its organization, (ii)
has the requisite Company power and authority to own its property and assets
and to transact the business in which it is engaged and presently proposes to
engage and (iii) is duly qualified and is authorized to do business and is in
good standing in each jurisdiction where the ownership, leasing or operation of
its property or the conduct of its business requires such qualifications,
except for failures to be so qualified and, in the case of Persons other than a
Credit Party, for failures to be so organized, existing or in good standing,
which, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

          7.02 Company Power and Authority. Each Credit Party has the requisite
Company power and authority to execute, deliver and perform the terms and
provisions of each of the Credit Documents to which it is party and has taken
all necessary Company action to authorize the execution, delivery and
performance by it of each of such Credit Documents. Each Credit Party has duly
executed and delivered each of the Credit Documents to which it is a party, and
each of such Credit Documents constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, except to the extent that
the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors’
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

          7.03 No Violation. Neither the execution, delivery or performance by any
Credit Party of the Credit Documents to which it is a party, nor the occurrence
of any Credit Event, nor compliance by such Credit Party with the terms and
provisions relating thereto, (i) will contravene any provision of any
Applicable Laws, (ii) will conflict with or result in any breach of any of the
terms, covenants, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of (or the obligation to create or
impose) any Lien upon any of the property or assets of such Credit Party
pursuant to the terms of, any indenture, mortgage, deed of trust, credit
agreement or loan agreement, or any other material agreement, contract or

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instrument, to which such Credit Party is a party or by which it or any of its
property or assets is bound or to which it may be subject or (iii) will violate
any provision of the certificate of incorporation or by-laws (or other
organizational documents) of such Credit Party.

          7.04 Governmental Approvals. No order, consent, approval, license,
authorization or validation of, or filing, recording or registration with
(except (x) as have been obtained or made on or prior to the Effective Date or
(y) in the case of any Person which becomes a Credit Party after the Effective
Date, as have been obtained or made on or prior to the date on which such
Person became a Credit Party), or exemption by, any
governmental or public body or authority, or any subdivision thereof, is
required to authorize, or is required in connection with, (i) the execution,
delivery and performance of any Credit Document or (ii) the legality, validity,
binding effect or enforceability of any such Credit Document.

          7.05 Financial Statements; Financial Condition; Undisclosed
Liabilities;
Projections; etc. (a) The consolidated balance sheets of Trizec for the
fiscal year ended on December 31, 2003 and for the three-month period ended on
March 31, 2004, and the related consolidated statements of income, cash flows
and shareholders’ equity of Trizec for the fiscal year or three-month period
ended on such dates, as the case may be, copies of which have been furnished to
the Administrative Agent and the Lenders prior to the Effective Date, present
fairly in all material respects the consolidated financial position of Trizec
at the date of such balance sheets and the consolidated results of the
operations of Trizec for the periods covered thereby. All of the foregoing
historical financial statements have been prepared in accordance with GAAP.
Since March 31, 2004, there has been no change in the business, operations,
property, assets, liabilities or condition (financial or otherwise) of Trizec
or any of its Subsidiaries that has had, or could reasonably be expected to
have, a Material Adverse Effect.

          (b) On and as of the Effective Date, after giving effect to the
transactions contemplated in this Agreement and to all Indebtedness (including
the Loans and the Subsidiaries Guaranty) being incurred or assumed by any
Credit Party, (a) the sum of the assets, at a fair valuation, of the Borrowers
and their Subsidiaries taken as a whole and of each of the Borrowers on a
stand-alone basis will exceed their respective debts; (b) the Borrowers and
each of their Subsidiaries taken as a whole and each of the Borrowers on a
stand-alone basis have (or has) not incurred and do (does) not intend to incur,
and do (does) not believe that they (it) will incur, debts beyond their (its)
ability to pay such debts as such debts mature; and (c) the Borrowers and their
Subsidiaries taken as a whole and each of the Borrowers on a stand-alone basis
will have sufficient capital with which to conduct their (its) respective
businesses. For purposes of this Section 7.05(b), “debt” means any liability
on a claim, and “claim” means (i) right to payment, whether or not such a right
is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured, or unsecured or
(ii) right to an equitable remedy for breach of performance if such breach
gives rise to a payment, whether or not such right to an equitable remedy is
reduced to judgment, fixed, contingent, matured, unmatured, disputed,
undisputed, secured or unsecured.

          (c) Except (i) as disclosed in the financial statements referred to in
Section 7.05(a), (ii) for liabilities arising in the ordinary course of
business since March 31, 2004 and (iii) any liabilities under this Agreement
and the other Credit Documents, there were as of the Effective Date no
liabilities or obligations with respect to any of the Borrowers or any of their

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respective Subsidiaries of any nature whatsoever (whether absolute, accrued,
contingent or otherwise and whether or not due) which, either individually or
in aggregate, could reasonably be expected to have a Material Adverse Effect.
As of the Effective Date, none of the Borrowers knows of any basis for the
assertion against it or any Subsidiary of any of the Borrowers of any
liability or obligation of any nature whatsoever that is not disclosed in the
financial statements referred to in Section 7.05(a) which, either individually
or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

          (d) On and as of the Effective Date, the Projections previously delivered
to the Administrative Agent and the Lenders were prepared in good faith based
upon reasonable assumptions by management of Trizec and reflect the actual
expectations of Trizec for its operations and performance for the periods
covered by the Projections. On the Effective Date, Trizec believed that the
Projections were reasonable and attainable.

          7.06 Litigation. (a) There are no actions, suits or proceedings
(including, without limitation, any Environment Claims) pending or, to the best
knowledge of each of the Borrowers, threatened (i) with respect to any Credit
Document or the transactions contemplated thereby or (ii) that individually or
in the aggregate could reasonably be expected to have a Material Adverse
Effect.

          (b) There are no final nonappealable judgments or decrees in an aggregate
amount of $25,000,000 or more entered by a court or courts of competent
jurisdiction against any Credit Party (other than any judgment as to which, and
only to the extent, a reputable and solvent insurance company has acknowledged
coverage of such claim in writing or which have been paid).

          7.07 True and Complete Disclosure. All factual information (taken as a
whole) furnished by any Credit Party in writing to the Administrative Agent or
any Lender (including, without limitation, all information contained in the
Credit Documents and with respect to each Borrowing Base Property) for purposes
of or in connection with this Agreement, the other Credit Documents or any
transaction contemplated herein or therein is, and all other such factual
information (taken as a whole) hereafter furnished by or on behalf of any
Credit Party in writing to the Administrative Agent or any Lender will be, true
and accurate in all material respects on the date as of which such information
is dated or certified and not incomplete by knowingly omitting to state any
fact necessary to make such information (taken as a whole) not misleading in
any material respect at such time in light of the circumstances under which
such information was provided.

          7.08 Use of Proceeds; Margin Regulations. (a) All proceeds of the Loans
will be used for the general corporate purposes of the Borrowers and their
Subsidiaries (including, but not limited to, making Investments and paying
Dividends as, and to the extent, permitted by this Agreement); provided,
however, proceeds of Swingline Loans may not be used to repay any then
outstanding Swingline Loans.

          (b) Neither the making of any Loan nor the use of the proceeds thereof nor
the occurrence of any other Credit Event will violate or be inconsistent with
the provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System. At the time of

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each Credit Event occurring on or after the
Effective Date, not more than 25% of the value of either (x) the Restricted
Property taken as a whole or (y)
the assets of the Borrowers and their Subsidiaries taken as a whole will
constitute Margin Stock.

          7.09 Tax Returns and Payments. Each of the Borrowers and each Subsidiary
of each of the Borrowers has timely filed or caused to be timely filed with the
appropriate taxing authority, all Federal and all material state, local,
foreign and other returns, statements, forms and reports for taxes (the
“Returns”) required to be filed by or with respect to the income, properties or
operations of such Borrower and/or any of its Subsidiaries. The Returns
accurately reflect all liability for taxes of each Credit Party and each of its
Subsidiaries for the periods covered thereby except for any such taxes that,
either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect. Each of the Borrowers and each Subsidiary of
each of the Borrowers has paid all material taxes payable by it other than
taxes contested in good faith and for which adequate reserves have been
established in accordance with generally accepted accounting principles. There
is no action, suit, proceeding, investigation, audit, or claim now pending or,
to the knowledge of either of the Borrowers, threatened by any authority
regarding any taxes relating to any Credit Party or any Subsidiary of any
Credit Party which, either individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effective.

          7.10 Subsidiaries. Schedule 7.10 sets forth, as of the Effective Date, (a)
on Part A thereof, each Subsidiary (other than an immaterial Subsidiary) of
each of the Borrowers (showing the direct and indirect ownership interests
therein), and (b) on Part B thereof, each Subsidiary Guarantor (showing the
direct and indirect ownership interests therein and, in the case of any
Subsidiary Guarantor which is a Borrowing Base Property Owner, the Borrowing
Base Properties owned by such Subsidiary Guarantor).

          7.11 Compliance with Applicable Laws. Each of the Borrowers and each
Subsidiary of each of the Borrowers is in compliance with all Applicable Laws
in respect of the conduct of its business and the ownership of its property
(including, without limitation, all building and zoning ordinances and codes),
except such noncompliances as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

          7.12 Investment Company Act. None of the Borrowers or any Subsidiary of
any of the Borrowers is an “investment company” or a company “controlled” by an
“investment company,” within the meaning of the Investment Company Act.

          7.13 Public Utility Holding Company Act. None of the Borrowers or any
Subsidiary of any of the Borrowers is a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of
a “subsidiary company” of a “holding company” within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

          7.14 Status as a REIT. Trizec is organized in conformity with the
requirements for qualification as a real estate investment trust under the
Code. Trizec will meet all of the requirements for qualification as a real
estate investment trust under
the Code for its taxable year ending December 31, 2004 and will elect to
be treated as such for such taxable year. Trizec is or

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 will be in a position to
qualify as a real estate investment trust under the Code for each taxable year
thereafter and its proposed methods of operation will enable it to so qualify.

          7.15 Compliance with ERISA. (a) Except as could not, either individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect:
each Plan (and each related trust, insurance contract or fund) is in
substantial compliance with its terms and with all applicable laws, including,
without limitation, ERISA and the Code; each Plan (and each related trust, if
any) which is intended to be qualified under Section 401(a) of the Code has
received a determination letter from the Internal Revenue Service to the effect
that it meets the requirements of Sections 401(a) and 501(a) of the Code; no
Reportable Event has occurred; no Multiemployer Plan is insolvent or in
reorganization; no Plan is subject to Section 412 of the Code or Section 302 or
Title IV of ERISA; all contributions required to be made with respect to a Plan
or a Multiemployer Plan have been timely made; no member of the ERISA Group has
incurred any liability (including any indirect, contingent or secondary
liability) to or on account of a Plan or Multiemployer Plan pursuant to Section
409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA
or Section 401(a)(29), 4971 or 4975 of the Code or, to the knowledge of each of
the Borrowers, expects to incur any such liability under any of the foregoing
sections with respect to any Plan or Multiemployer Plan; no condition exists
which presents a material risk to any member of the ERISA Group of incurring a
liability to or on account of a Plan or Multiemployer Plan pursuant to the
foregoing provisions of ERISA and the Code; no action, suit, proceeding,
hearing, audit or investigation with respect to the administration, operation
or the investment of assets of any Plan (other than routine claims for
benefits) is pending, or, to the knowledge of each of the Borrowers, is
expected or threatened; using actuarial assumptions and computation methods
consistent with Part 1 of subtitle E of Title IV of ERISA, the aggregate
liabilities of the ERISA Group to all Multiemployer Plans in the event of a
complete withdrawal therefrom, as of the close of the most recent fiscal year
of each such Multiemployer Plan ended prior to the date of the most recent
Credit Event, would not result in a liability; each group health plan (as
defined in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) which
covers or has covered employees or former employees of any member of the ERISA
Group has at all times been operated in compliance with the provisions of Part
6 of subtitle B of Title I of ERISA and Section 4980B of the Code; each group
health plan (as defined in US Code of Federal Regulations Section 160103) which
covers or has covered employees or former employees of any member of the ERISA
Group has at all times been operated in compliance with the provisions of the
Health Insurance Portability and Accountability Act of 1996 and the regulations
promulgated thereunder; no lien imposed under the Code or ERISA on the assets
of any member of the ERISA Group exists or, to the knowledge of each of the
Borrowers, is likely to arise on account of any Plan or Multiemployer Plan; and
no member of the ERISA Group maintains or contributes to any employee welfare
benefit plan (as defined in Section 3(1) of ERISA) which provides benefits to
retired employees or other former employees (other than as required by Section
601 of ERISA) or any Plan the obligations with respect to which could
reasonably be expected to be material.

          (b) Except as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect: each Foreign Pension
Plan has been maintained in substantial compliance with its terms and with the
requirements of any and all applicable laws, statutes, rules, regulations and
orders and has been maintained, where required, in good standing with
applicable regulatory authorities; all contributions required to be made with
respect to a

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Foreign Pension Plan have been timely made; no member of the ERISA
Group has incurred any obligation in connection with the termination of, or
withdrawal from, any Foreign Pension Plan; and the present value of the accrued
benefit liabilities (whether or not vested) under each Foreign Pension Plan,
determined as of the end of the most recently ended fiscal year of Trizec on
the basis of actuarial assumptions, each of which is reasonable, did not exceed
the current value of the assets of such Foreign Pension Plan allocable to such
benefit liabilities or, alternatively, each of the Credit Parties has
established adequate reserves for the present value of such accrued benefit
liabilities, determined as described herein, in the financial statements
referred to in Section 7.05(a) hereof.

          7.16 Environmental Compliance. (a) (i) There are in effect all
Environmental Approvals which are required to be obtained under all
Environmental Laws with respect to the business and properties of each of the
Borrowers and each Subsidiary of each of the Borrowers, except for such
Environmental Approvals the absence of which could not reasonably be expected
to have a Material Adverse Effect and (ii) each of the Borrowers and its
Subsidiaries is in compliance with the terms and conditions of all such
Environmental Approvals, and is also in compliance with all other Environmental
Laws or any order, decree, judgment or injunction issued, entered or approved
thereunder, except to the extent failure to comply, either individually or in
the aggregate, could not reasonably be expected to have a Material Adverse
Effect;

          (b) (i) there are no Environmental Claims pending or threatened by any
Governmental Authority with respect to any failure or alleged failure by any of
the Borrowers or any of their respective Subsidiaries to have any Environmental
Approval required in connection with the conduct of the business of, or
properties owned, leased or operated (currently or in the past) by, any of the
Borrowers or any of their respective Subsidiaries, or with respect to any
generation, treatment, storage, recycling, transportation, Release or disposal
of any Hazardous Material generated by any of the Borrowers or any of their
respective Subsidiaries, in each case to the extent that such Environmental
Claims, either individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect;

          (ii) no Hazardous Material has been Released by any of the Borrowers or
any of their respective Subsidiaries at any property owned, leased or operated
(currently or in the past) by any of the Borrowers or any of their respective
Subsidiaries, in each case to the extent that such Releases, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect;

          (iii) no friable asbestos is present at any of the properties owned,
leased or operated by any of the Borrowers or any of their respective
Subsidiaries to the extent that such presence of asbestos, either individually
or in the aggregate, could reasonably be
expected to have a Material Adverse Effect;

          (iv) there are no underground storage tanks for Hazardous Material at any
properties currently owned, leased or operated by any of the Borrowers or any
of their respective Subsidiaries to the extent that such tanks, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect; and

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          (v) there are no other facts, circumstances or conditions relating to
environmental matters of any of the Borrowers or any of their respective
Subsidiaries, their operations or their currently owned, leased or operated
properties which, either individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.

          7.17 Patents, Trademarks, etc. Each of the Borrowers and each Subsidiary
of each of the Borrowers, has obtained and holds in full force and effect all
patents, trademarks, service marks, trade names, copyrights and other such
rights, free from burdensome restrictions, which are necessary for the
operation of its business as presently conducted, the absence or impairment of
which, either individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

          7.18 No Default. No Default or Event of Default is in existence. None of
the Borrowers nor any Subsidiary of any of the Borrowers is in default in any
material respect beyond any applicable grace period under or with respect to
any other material agreement, instrument or undertaking to which it is a party
or by which it or any of its property is bound in any respect, the existence of
which default, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

          7.19 Licenses, etc. Each of the Borrowers and each Subsidiary of each of
the Borrowers has obtained and holds in full force and effect, all franchises,
licenses, permits, certificates, authorizations, qualifications,
accreditations, easements, rights of way and other consents and approvals which
are necessary for the operation of its businesses as presently conducted, the
absence of which, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

          7.20 No Burdensome Restrictions. None of the Borrowers nor any Subsidiary
of any of the Borrowers is a party to any agreement or instrument or subject to
any other obligation or any charter or corporate or partnership restriction, as
the case may be, which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

          7.21 Labor Matters. None of the Borrowers nor any Subsidiary of any of
the Borrowers is engaged in any unfair labor practice that could reasonably be
expected, either individually or in the aggregate, to have a Material Adverse
Effect. There is (i) no unfair labor practice complaint pending against any of
the Borrowers or any of their respective Subsidiaries or, to the knowledge of
any of the Borrowers, threatened against any of the Borrowers or any of their
respective Subsidiaries, before the National Labor Relations Board (or any
foreign equivalent thereof), and no grievance or arbitration proceeding arising
out of or under any collective bargaining agreement is so pending
against any of the Borrowers or any of their respective Subsidiaries or,
to the knowledge of any of the Borrowers, threatened against any of the
Borrowers or any of their respective Subsidiaries, (ii) no strike, labor
dispute slowdown or stoppage pending against any of the Borrowers or any of
their respective Subsidiaries or to the knowledge of any of the Borrowers,
threatened against any of the Borrowers or any of their respective
Subsidiaries, and (iii) no union representation question exists with respect to
the employees of any of the Borrowers or any of their respective Subsidiaries,
except (with respect to any matter specified in clause (i), (ii) or (iii)
above, either individually or in the aggregate) such as could not reasonably be
expected to have a Material Adverse Effect.

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          7.22 Insurance. Each of the Borrowers and its Subsidiaries maintains
property insurance in respect of all Real Estate Assets and other Property
owned, leased or operated by it, as well as comprehensive general liability
insurance (including “builders’ risk”) against claims for personal and bodily
injury and/or death, to one or more persons, or property damage, as well as
workers’ compensation insurance, in each case with insurers having an A.M. Best
policyholders’ rating of not less than A-VIII (or, in the case of earthquake
and terrorism insurance, with responsible and reputable insurers or with an
insurance company Affiliate of the Borrowers whose specific objective is to
insure risks emanating from the Borrowers and its Consolidated Entities and
Unconsolidated Entities) and in amounts and coverage that prudent owners of
assets such as such Real Estate Assets and other Property would maintain (it
being understood that, in any event, all property insurance maintained on each
of the Borrowing Base Properties is at 100% of replacement cost). The
Administrative Agent, on its own behalf and on behalf of the Lenders, has been
listed as an additional insured in respect of all comprehensive general
liability insurance maintained by each of the Borrowers and its Subsidiaries.
Schedule 7.22 sets forth, as of the Effective Date, a list of all insurance
maintained by each of the Borrowers and its Subsidiaries, with the amounts
insured (and any deductibles) set forth therein.

          7.23 Capitalization. All outstanding shares of capital stock of each of
the Borrowers and the Subsidiary Guarantors have been duly and validly issued
and are fully paid and non-assessable. No Subsidiary Guarantor has outstanding
any capital stock or other securities convertible into or exchangeable for its
capital stock or any rights to subscribe for or to purchase, or any options for
the purchase of, or any agreement providing for the issuance (contingent or
otherwise) of, or any calls, commitments or claims of any character relating
to, its capital stock, except for options, warrants and rights to purchase
shares held by any of the Borrowers or any Wholly-Owned Subsidiary of any of
the Borrowers or, in the case of any Subsidiary Guarantor which is not a
Wholly-Owned Subsidiary or may in the future become a Subsidiary which is not a
Wholly-Owned Subsidiary, by any other Person so long as the Borrowing Base
Property or Borrowing Base Properties owned by such Subsidiary Guarantor would
not fail to satisfy all of the Borrowing Base Property Conditions if any of the
Borrowers or such Wholly-Owned Subsidiary of any of the Borrowers and such
Person fully exercised such options, warrants and rights to purchase shares.

          7.24 Properties. Each Borrowing Base Property owned or leased by a
Credit Party as of the Effective Date, and the nature of the interest
therein, is set forth in Schedule 7.10. Each Credit Party and each of its
Subsidiaries has good and indefeasible title to all material properties owned
by it (including each Borrowing Base Property which is owned in fee), and a
valid leasehold interest in all material property leased by it (including each
Borrowing Base Property which is subject to a ground lease), including (in each
case) all material property reflected in the most recent historical balance
sheets referred to in Section 7.05(a) (except (x) as sold or otherwise disposed
of since the date of such balance sheet in the ordinary course of business or
as permitted by the terms of this Agreement or (y) in the case of any such
Person that is not a Credit Party, to the extent that any failure to have such
good and indefeasible title or valid leasehold interest in any property,
either, individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect), free and clear, in the case of any Restricted
Property, of all Liens, other than Permitted Liens. The Borrowing Base
Properties satisfy the Borrowing Base Property Conditions (except for any
Excluded Borrowing Base Property to the extent set forth in Section 8.13(d)).

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          SECTION 8. Affirmative Covenants. Each of the Borrowers hereby covenants
and agrees that on and after the Effective Date and until the Total Commitment
and all Letters of Credit have terminated and the Loans, Notes and Unpaid
Drawings (in each case together with interest thereon) and all other
Obligations are paid in full:

          8.01 Information Covenants. Trizec will furnish to the Administrative
Agent and each Lender:

          (a) Quarterly Financial Statements. Within 90 days after the close of each
of the first three quarterly accounting periods in each fiscal year of Trizec
(or, if sooner, within five Business Days after same are filed with the SEC),
(i) the consolidated balance sheet of Trizec as at the end of such quarterly
accounting period and the related consolidated statements of income and
retained earnings and statement of cash flows for such quarterly accounting
period and for the elapsed portion of the fiscal year ended with the last day
of such quarterly accounting period, in each case setting forth comparative
figures as of the end of and for the related periods in the prior fiscal year,
all of which shall be certified by a Senior Financial Officer of Trizec that
they fairly present in all material respects in accordance with GAAP the
consolidated financial condition of Trizec as of the dates indicated and the
results of its operations for the periods indicated, subject to normal year-end
audit adjustments and the absence of footnotes, and (ii) management’s
discussion and analysis of the important operational and financial developments
during such quarterly accounting period (it being understood and agreed that,
the delivery by Trizec to the Administrative Agent and each of the Lenders of
Trizec’s Form 10-Q report (including all exhibits and attachments thereto,
other than those exhibits and attachments which have been incorporated in such
Form 10-Q report by reference and have been previously filed with the SEC) as
filed with the SEC for the respective quarterly accounting period within the
time period otherwise required by this Section 8.01(a) and certified by a
Senior Financial Officer of Trizec shall satisfy Trizec’s obligations under
this Section 8.01(a)).

          (b) Annual Financial Statements. (A) Within 120 days after the close
of each fiscal year of Trizec (or, if sooner, within five Business Days
after same are filed with the SEC), (i) the consolidated balance sheet of
Trizec as at the end of such fiscal year and the related consolidated
statements of income and retained earnings and of cash flows for such fiscal
year setting forth comparative figures as of the end of and for the preceding
fiscal year and certified by PricewaterhouseCoopers LLP, any other currently
existing “Big Four” independent certified public accounting firm or such other
independent certified public accountants of recognized national standing
reasonably acceptable to the Administrative Agent, and (ii) management’s
discussion and analysis of the important operational and financial developments
during such fiscal year (it being understood and agreed that the delivery by
Trizec to the Administrative Agent and each of the Lenders of Trizec’s Form
10-K report (including all exhibits and attachments thereto, other than those
exhibits and attachments which have been incorporated in such Form 10-K report
by reference and have been previously filed with the SEC) as filed with the SEC
for the respective fiscal year within time period otherwise required above by
this Section 8.01(b)(A) and certified to by a Senior Financial Officer of
Trizec and containing the accountant’s certification and report as described
above shall satisfy Trizec’ s obligations under this Section 8.01(b)(A)).

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          (B) Within 90 days after the close of each fiscal year of Trizec, (i)
a complete lease rent roll for each of the Borrowing Base Properties,
certified by a Senior Financial Officer of Trizec to be true and correct in
all material respects and (ii) complete operating statements (including
occupancy statements and statements of Net Operating Income) for the Borrowing
Base Properties (on an individual basis) for such fiscal year, all of which
shall be certified by a Senior Financial Officer of Trizec that they fairly
present in all material respects in accordance with GAAP such operating
information.

          (c) Notice of Certain Capital Events. As soon as possible and in any
event within 10 Business Days after the occurrence thereof, written notice (in
reasonable detail) of any of the following events:

     (i) any incurrence or issuance of Indebtedness by any Credit Party
of $50,000,000 or more (other than intercompany Indebtedness among the
Borrowers or among the Borrowers and any Subsidiaries of any of the
Borrowers which is eliminated in the consolidated financial statements of
Trizec);

     (ii) any incurrence or issuance of Indebtedness for borrowed money
by any Subsidiary of any of the Borrowers that is not a Credit Party of
$50,000,000 or more to the extent that all or any portion of such
Indebtedness is Recourse to a Credit Party (other than intercompany
Indebtedness among any of the Borrowers and any Subsidiaries of any of
the Borrowers which is eliminated in the consolidated financial
statements of Trizec);

     (iii) any Asset Sale or purchase of assets by any of the Borrowers
or any Subsidiaries of any of the Borrowers of $50,000,000 or more; and

     (iv) any equity issuance of, or capital contribution to, any of the
Borrowers or any Subsidiary of any of the Borrowers of $100,000,000 or
more (other than equity contributions made to a Borrower or to a
Subsidiary of any of the Borrowers to the extent made by any of the
Borrowers or another Subsidiary of any of the Borrowers).

          (d) Budgets. No later than 30 days following the first day of each fiscal
year of Trizec, (i) complete operating budgets in the forms customarily prepared
by Trizec or the Borrowing Base Property Owners for each of the Borrowing Base
Properties (on an individual basis) for such fiscal year, and (ii) a complete
operating budget for Trizec and its Consolidated Entities on a consolidated
basis in the form customarily prepared by Trizec (i) for each of
the four fiscal
quarters of such fiscal year prepared in detail and (ii) for the immediately
succeeding fiscal year prepared in summary form, in each case setting forth,
with appropriate discussion, the principal assumptions upon which such budgets
are based.

          (e) Officer’s Certificates. At the later of (x) the time of the delivery
of the financial statements provided for in Sections 8.01 (a) and (b) and (y) 60
days after the close of the accounting period to which such financial statements
relate, (i) a Compliance Certificate of a Senior Financial Officer of each of
the Borrowers to the effect that no Default or Event of Default has occurred and
is continuing or, if any Default or Event of Default has occurred and
is continuing, specifying the nature and extent thereof, which certificate shall
set forth (in reasonable detail) the calculations required to establish (i)
whether the Borrowers and their respective

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Subsidiaries (as applicable) were in compliance with the provisions of
Sections 8.11, 9.01(h), 9.02(b), 9.03(b), 9.06, and 9.10 through 9.14,
inclusive, in each case, at the end of such period, and (ii) the calculations
and, if applicable, the Applicable Credit Rating required to establish the
Applicable Margin and, if applicable, the Applicable Facility Fee Percentage
for the respective Pricing Period.

          (f) Notice of Default, Litigation or Material Adverse Effect. Promptly,
and in any event within five Business Days after an executive or financial
officer of any of the Borrowers obtains actual knowledge thereof, notice of (i)
the occurrence of any event which constitutes a Default or an Event of Default,
(ii) any litigation or governmental investigation or proceeding (including,
without limitation, any Environmental Claim) pending (x) against
any of the
Borrowers or any of their respective Subsidiaries with respect to any material
Indebtedness of any of the Borrowers or any of their respective Subsidiaries
which could reasonably be expected to have a Material Adverse Effect or (y) with
respect to any Credit Document, (iii) any other event, change or circumstance
that has had, or could reasonably be expected to have, a Material Adverse Effect
or (iv) the commencement of the 60 day period referred to in clause (i)(A) of
the definition of Change of Control or the 60 day period referred to in clause
(i)(y)(A) of the definition of Trizec Canada Control Requirements.

          (g) Other Reports and Filings. Promptly after the filing or delivery
thereof,copies of all other financial information, proxy materials and reports,
if any, which Trizec or any of its Subsidiaries shall publicly file with the
Securities and Exchange Commission or any successor thereto (the “SEC”), or
shall deliver to its shareholders.

          (h) ERISA. As soon as possible and, in any event, within twenty (20) days
after any member of the ERISA Group knows or has reason to know of the
occurrence of any of the following to the extent that any such occurrence,
either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, a certificate of a Senior Financial Officer of Trizec
setting forth the full details as to such occurrence and the action, if any,
that such member of the ERISA Group is required or proposes to take, together
with any notices required or proposed to be given or filed by such member of
the ERISA Group to or with the PBGC or any other government agency, or a Plan
or Multiemployer Plan participant and any notices received by such member of
the ERISA Group from the PBGC or any other government agency, or a Plan or
Multiemployer Plan participant with respect thereto: that a Reportable Event
has occurred (except to the extent that Trizec has previously delivered to each
Lender a certificate and notices (if any) concerning such event pursuant to the
next clause hereof); that a contributing sponsor (as defined in Section
4001(a)(13) of ERISA) of a Plan subject to Title IV of ERISA is subject to the
advance reporting requirement of PBGC Regulation Section 4043.61 (without
regard to subparagraph (b)(l) thereof), and an event described in subsection
..62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 is
reasonably expected to occur with respect to such Plan within the following 30
days; that an accumulated funding deficiency, within the meaning of Section 412
of the Code or Section 302 of ERISA, has been incurred or an application may be
or has been made for a waiver or modification of the minimum funding standard
(including any required installment payments) or an extension of any
amortization period under Section 412 of the Code or Section 303 or 304 of
ERISA with respect to a Plan or Multiemployer Plan; that any contribution
required to be made with respect to a Plan, Multiemployer Plan or Foreign
Pension Plan has not been timely made; that a Plan or

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Multiemployer Plan has been or may be terminated, reorganized, partitioned or
declared insolvent under Title IV of ERISA; that a Plan has an Unfunded Current
Liability; that proceedings may be or have been instituted to terminate or
appoint a trustee to administer a Plan which is subject to Title IV of ERISA;
that a proceeding has been instituted pursuant to Section 515 of ERISA to
collect a delinquent contribution to a Multiemployer Plan; that any member of
the ERISA Group will or may incur any liability (including any indirect,
contingent, or secondary liability) to or on account of the termination of or
withdrawal from a Plan or Multiemployer Plan under Section 4062, 4063, 4064,
4069, 4201, 4204 or 4212 of ERISA or with respect to a Plan under Section
401(a)(29), 4971, 4975 or 4980 of the Code or Section 409, 502(i) or 502(1) of
ERISA or with respect to a group health plan (as defined in Section 607(1) of
ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of the Code; or
that any member of the ERISA Group may incur any liability pursuant to any
employee welfare benefit plan (as defined in Section 3(1) of ERISA) that
provides benefits to retired employees or other former employees (other than as
required by Section 601 of ERISA) or any Plan or any Foreign Pension Plan. The
Borrowers will deliver to the Administrative Agent and each of the Lenders
copies of any records, documents or other information that must be furnished to
the PBGC with respect to any Plan pursuant to Section 4010 of ERISA. The
Borrowers will also deliver to the Administrative Agent and each of the Lenders
a complete copy of the annual report (on Internal Revenue Service Form
5500-series) of each Plan (including, to the extent required, the related
financial and actuarial statements and opinions and other supporting
statements, certifications, schedules and information) required to be filed
with the Internal Revenue Service. In addition to any certificates or notices
delivered to the Administrative Agent and the Lenders pursuant to the first
sentence hereof, copies of annual reports and any records, documents or other
information required to be furnished to the PBGC or any other government
agency, and any material notices received by the Borrowers, any Subsidiary of
the Borrowers or any ERISA Group member with respect to any Plan or Foreign
Pension Plan or received from any government agency or plan administrator or
sponsor or trustee with respect to any Multiemployer Plan, shall be delivered
to the Administrative Agent and the Lenders no later than ten (10) days after
the date such annual report has been filed with the Internal Revenue Service or
such records, documents and/or information has been furnished to the PBGC or
any other government agency or such notice has been received by the Borrowers,
the Subsidiary or any ERISA Group member, as applicable. Each member of the
ERISA Group shall ensure that all Foreign Pension Plans administered by it or
into which it makes payments obtains or retains (as applicable) registered
status under and as required by applicable law and is administered in a timely
manner in all respects in compliance with all applicable laws except where the
failure to do any of the foregoing could not reasonably be expected to have a
Material Adverse Effect.

          (i) Environmental. As soon as possible and in any event within 10
Business Days after any of the Borrowers or any of their respective
Subsidiaries obtains knowledge of any of the following, written notice of (i)
any written notice, claim, complaint or order to the effect that any of the
Borrowers or any of their respective Subsidiaries is or may be liable to any
Person as a result of any event, circumstance or occurrence under any
Environmental Law, including the Release by any of the Borrowers, any of their
respective Subsidiaries, or any other Person of any Hazardous Materials into
the environment or requiring that action be taken to respond to or clean up a
Release of Hazardous Materials into the environment, (ii) any condition or
occurrence on any Real Estate Asset owned, leased or operated by any of the
Borrowers or any of their respective Subsidiaries that (x) results in
non-compliance by any of the Borrowers or any of their

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respective Subsidiaries with any applicable Environmental Law, (y) could
reasonably be anticipated to form the basis of an Environmental Claim against
any of the Borrowers or any of their respective Subsidiaries, or (z) could
reasonably be anticipated to cause such Real Estate Asset to be subject to any
restrictions on the ownership, lease, occupancy, use or transferability by any
of the Borrowers or any of their respective Subsidiaries of its interest in
such Real Estate Asset under any Environmental Law, (iii) any written notice,
complaint or citation alleging any violation of any Environmental Law or any
Environmental Approval by any of the Borrowers or any of their respective
Subsidiaries or (iv) the taking of any removal or remedial action in response
to the actual or alleged presence of any Hazardous Materials on any Real Estate
Asset currently owned, leased or operated by any of the Borrowers or any of
their respective Subsidiaries. Notwithstanding anything to the contrary
contained in the immediately preceding sentence, notices of events of the type
described above shall not be required to be given with respect to any event
where the respective event could not be reasonably expected to have a Material
Adverse Effect.

          (j) Borrowing
Base Certificate. (i) On the Effective Date, (ii) no later
than the 45th day after the end of each fiscal quarter of Trizec, (iii) on
each Addition Date, (iv) on each Release Date, (v) on each date on which (x)
the Borrowers designate a Borrowing Base Property as an Excluded Borrowing
Base Property pursuant to Section 8.13(d) or (y) a Borrowing Base Property is
deemed to be an Excluded Borrowing Base Property pursuant to Section 8.15(d),
and (vi) on each date on which a Subsidiary Guarantor that is a Wholly-Owned
Subsidiary of any of the Borrowers ceases to be a Wholly-Owned Subsidiary, a
borrowing base certificate in the form of Exhibit M (each, a “Borrowing Base
Certificate”) (which shall, in the case of the Borrowing Base Certificate
delivered on the Effective Date, demonstrate compliance with Section 9.14 on
the Effective Date), in each case certified by a Senior Financial Officer of
any of the Borrowers.

          (k) Notice of Claims Against Borrowing Base Properties. Without limiting
the provisions of Sections 8.01(f)(ii) and 8.01(i), promptly, and in any event
within five Business Days after an executive or financial officer of any of the
Borrowers obtains actual knowledge thereof, (i) notice of any setoff, claims,
withholdings or other defenses to which any of the Borrowing Base Properties or
any of the Borrowing Base Property Owners are subject which could reasonably be
expected to have an adverse impact in any material respect on the value of the
Borrowing Base Properties taken as a whole, or (ii) notice of any event,
circumstance or other matter for which notice is required to be delivered
pursuant to Section 8.01(f)(ii) or 8.01(i) insofar as same related to any
Borrowing Base Property or any such Borrowing Base Property Owner which could
reasonably be expected to have an adverse impact in any material respect on the
value of the Borrowing Base Properties taken as a whole.

          (1) Funds From Operations. In the event that the definition of “Funds
From Operations” is revised by the Board of Governors of the National
Association of Real Estate Investment Trusts, a report, certified by a Senior
Financial Officer of Trizec, of the “Funds From Operations” of Trizec based on
the definition as in effect on the Effective Date and based on the definition
as so revised from time to time.

          (m) Other Information. From time to time, such other information or
documents (financial or otherwise and including, without limitation, rent
rolls and other property

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specific information for the Borrowing Base Properties (including, without
limitation, property specific information for determining the Borrowing Base
Property NOI) and outstanding Indebtedness of each of the Borrowers and its
Subsidiaries) with respect to each of the Borrowers and its Subsidiaries (or
properties owned by such Persons) as the Administrative Agent or any Lender
(through the Administrative Agent) may reasonably request, so long as the
disclosure of such information could not result in a violation of, or expose
the Borrowers or any of their respective Subsidiaries to any material
liability under, any Applicable Laws or any agreements with unaffiliated third
parties that are binding on any of the Borrowers or any of their respective
Subsidiaries or on any property of any of them.

          8.02
Books, Records, Inspections and Annual Meetings. (a) Each of
the Borrowers will, and will cause each of its Subsidiaries to, keep proper
books of record and accounts in which full, true and correct entries in
conformity with GAAP and all requirements of law shall be made of all dealings
and transactions in relation to its business and activities. Upon reasonable
prior notice, each of the Borrowers will permit officers and designated
representatives of the Administrative Agent or any Lender to visit and inspect,
during regular business hours and under guidance of officers of such Borrower or
its Subsidiaries, the Borrowing Base Properties and any of the other properties
of such Borrower or any of its Subsidiaries, and, so long as the disclosure of
such information could not result in a violation of, or expose any of the
Borrowers or any of their respective Subsidiaries to any material liability
under, any Applicable Laws, or any agreements with unaffiliated third parties
that are binding on any of the Borrowers or any of their respective Subsidiaries
or on any property of any of them, to examine the books of account of such
Borrower and its Subsidiaries and discuss the affairs, finances and accounts of
such Borrower and its Subsidiaries with its officers and independent
accountants, all at such reasonable times and intervals and to such reasonable
extent as the Administrative Agent or such Lender may reasonably request. Any
Lender requesting any such visit, inspection, examination or discussion shall
coordinate same with the Administrative Agent.

          (b) At a date to be mutually agreed upon between the Administrative Agent
and the Borrowers, the Borrowers will, at the request of the Administrative
Agent, hold an annual meeting with all of the Lenders, at which meeting will be
reviewed the financial results of the Borrowers and their respective
Subsidiaries for the previous fiscal year and the budgets presented for the
current fiscal year of Trizec.

          8.03
Maintenance of Property; Insurance; Casualty and Condemnation;
Restoration; and Renovations. (a) Each of the Borrowers will, and will cause
each of its Subsidiaries to, keep all of its material properties that are used
or useful in the conduct of its business (including, in any event, each
Borrowing Base Property) in good repair, working order and condition, subject to
ordinary wear and tear and damage from casualty which is being diligently
repaired.

          (b) Each of the Borrowers will, and will cause each of its Subsidiaries
to, (i) maintain insurance as specified in Section 7.22 with insurers meeting
the qualifications described therein, and (ii) furnish to the Administrative
Agent from time to time, upon written request, certificates of insurance and
such other information relating to such insurance as the Administrative Agent
may reasonably request.

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          8.04
Ownership of Real Estate Assets; Additional Borrower;
Subsidiary Guarantors. (a) Trizec will not own or lease any Real Estate Asset
directly. Any Real Estate Asset in which Trizec owns an indirect interest shall
be owned or leased at all times by a Subsidiary or other Consolidated Entity of
Trizec or by an Unconsolidated Entity of Trizec.

          (b) In the event that Trizec elects to conduct its business (including,
without limitation, its ownership of all of the Equity Interests in Holdings
and any Subsidiary Guarantor described in Section 8.13(f)) by means of an
operating “upreit” structure, such operating “upreit” entity (including
Holdings if Holdings is converted into such entity, the “Additional Borrower”)
shall be a limited partnership or a limited liability company in which (i)
Trizec or a Wholly-Owned Subsidiary of Trizec shall be at all times the sole
general partner or managing member, as applicable, and (ii) Trizec and/or such
Wholly-Owned Subsidiary of Trizec shall at all times own not less than 66 2/3%
of the Equity Interests of the Additional Borrower and control all financing,
sale and other material decisions relating to the Additional Borrower with no
veto rights in any minority equity owner therein or any other Person. At the
time of formation of the Additional Borrower (other than as a result of the
conversion of Holdings into such an entity), Trizec and Holdings shall, and
shall cause the Additional Borrower to, comply with the provisions of Section
1.06(g) so that the Additional Borrower shall be a Credit Party party to this
Agreement and certain of the other Credit Documents.

          8.05 Compliance with Applicable Laws and Authorizations. Each of
the Borrowers will, and will cause each of its Subsidiaries to, comply with all
Applicable Laws (including, without limitation, Environmental Laws, all zoning
and building codes and ERISA and the rules and regulations thereunder) and
Authorizations except where non-compliance, either individually or in the
aggregate, could not be reasonably expected to have a Material Adverse Effect.

          8.06 Company Existence and Franchises, etc. Each of the Borrowers will,
and will cause each of its Subsidiaries to, do or cause to be done, all things
necessary to preserve and keep in full force and effect its Company existence
and its rights, franchises, licenses and patents; provided, however, that (i)
nothing in this Section 8.06 shall require any Subsidiary of any of the
Borrowers which is not a Credit Party to preserve and keep in full force and
effect its Company existence where any such event, either individually or in the
aggregate, could not reasonably be expected to result in a Default or an Event
of Default or where any such event, either individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, (ii) nothing
in this Section 8.06 shall prevent the withdrawal by any of the Borrowers or any
of their respective Subsidiaries of its qualification as a foreign Company in
any jurisdiction where such withdrawal, either individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect and (iii)
none of the Borrowers nor any Subsidiary of any of the Borrowers shall be
obligated to maintain any such right, franchise, license or patent in the event
such Borrower or such Subsidiary, as the case may be, has determined in
its reasonable business judgment, that the maintenance of such right, franchise,
license or patent is no longer necessary or desirable in the conduct of its
business.

          8.07 Performance of Obligations. Each of the Borrowers will, and will
cause each of its Subsidiaries to, perform all of its obligations under the
terms of each material agreement, contract or instrument (other than any such
material agreement, contract or

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instrument governing Indebtedness) by which it is bound, except such
non-performances as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

          8.8 Payment of Taxes. Each of the Borrowers will, and will cause each of
its Subsidiaries to, pay and discharge, or cause to be paid and discharged, all
taxes, assessments and governmental charges or levies imposed upon it or upon
its income or profits, or upon the Borrowing Base Properties and any other
properties belonging to it, in each case on a timely basis, and all lawful
claims which, if unpaid, might become a Lien upon any properties of
such Borrower or any such Subsidiary; provided that none of the Borrowers nor
any Subsidiary of any of the Borrowers will be required to pay any such tax,
assessment, charge, levy or claim which(x) is being contested in good faith and
by appropriate proceedings if it has maintained adequate reserves with respect
thereto in accordance with GAAP or (y) either individually or in
the aggregate,
could not reasonably be expected to have a Material Adverse Effect and so long
as no Default or Event of Default under Section 9.01 shall occur as a result
thereof.

          8.9 Use of Proceeds. The Borrowers will use all proceeds from each
Credit Event only as provided in Section 7.08.

          8.10
End of Fiscal Years; Fiscal Quarters. Each of the Borrowers will,
for financial reporting purposes, cause (i) each of its fiscal years and fourth
fiscal quarters to end on December 31 of each year and (ii) each of its first
three fiscal quarters to end on the last day of March, June and September of
each year.

          8.11 Interest Rate Protection. Each of the Borrowers will, and/or will
cause its Subsidiaries which are the primary obligors on Indebtedness to,
maintain Interest Rate Hedgeson a notional amount of Indebtedness for borrowed
money of the Borrowers and their respective Subsidiaries (other than
Intercompany Indebtedness) which, when added to the aggregate principal amount
of Indebtedness for borrowed money of the Borrowers and their
respective Subsidiaries (other than Intercompany Indebtedness) which bears
interest at a fixed rate, equals or exceeds 60% of the aggregate principal
amount of all Indebtedness for borrowed money of the Borrowers and their
respective Subsidiaries (other than Intercompany Indebtedness).

          8.12 REIT Requirements. Each of the Borrowers will, and will cause each of
its Subsidiaries to, operate its business at all times so as to satisfy all
requirements necessary to qualify and maintain Trizec’s qualification as a real
estate investment trust under Sections 856 through 860 of the Code. Each of the
Borrowers will maintain adequate records so as to comply with all record-keeping
requirements relating to its qualification as a real estate
investment trust as
required by the Code and applicable regulations of the Department of the
Treasury promulgated thereunder and will properly prepare and timely file with
the Internal Revenue Service all returns and reports required thereby.

          8.13 Addition and Release of Borrowing Base Properties and
Subsidiary Guarantors. (a) At any time and from time to time, the Borrowers
may, upon receiving confirmation from the Administrative Agent that the
Borrowing Base Property Conditions for such Real Estate Asset have been
satisfied or otherwise with the approval of the Required Lenders, add one or
more Real Estate Assets to the Borrowing Base as Borrowing Base

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Properties (each, an “Additional Borrowing Base Property”). Prior to the
addition of any Real Estate Asset to the Borrowing Base as an Additional
Borrowing Base Property, the Borrowers shall have delivered to the
Administrative Agent (i) a certificate of a Senior Financial Officer of each of
the Borrowers specifying the Real Estate Asset to be so added to the Borrowing
Base and the Addition Date therefor and certifying (in reasonable detail) that
such Real Estate Asset satisfies the Borrowing Base Property Conditions, (ii) a
new Borrowing Base Certificate pursuant to Section 8.01(j)(iii), and (iii) to
the extent that such Real Estate Asset is owned by a Person other than a then
existing Credit Party, a counterpart of the Subsidiaries Guaranty executed by
such Person together with all other relevant officer’s certificates,
resolutions, opinions of counsel and other documentation of the type described
in Sections 5.02 and 5.03 as such Person would have had to deliver if such
Person were a Credit Party on the Effective Date. Upon satisfaction of the
requirements of this Section 8.13(a) and the occurrence of the Addition Date
with respect thereto, and subject to the continued compliance of any such
Additional Borrowing Base Property with the Borrowing Base Property Conditions,
such Additional Borrowing Base Property shall be included in the Borrowing Base
as a Borrowing Base Property.

          (b) At any time and from time to time but only so long as no Default or
Event of Default then exists or would result therefrom, the Borrowers shall have
the right, exercisable pursuant to a written notice (each, a “Borrowing Base
Property Release Notice”), to remove one or more Borrowing Base Properties from
the Borrowing Base. Each Borrowing Base Property Release Notice pursuant to
this Section 8.13(b) shall be delivered to the Administrative
Agent and shall be
accompanied by (i) a certificate of a Senior Financial Officer of each of
the Borrowers (x) specifying the Borrowing Base Property to be removed and the
Release Date therefor, (y) certifying that no Default or Event of Default then
exists or, after taking the actions described in clause (iii) below in this
Section 8.13(b), would result therefrom and (z) certifying(and showing the
calculations therefor in reasonable detail) that the Borrowers will be
incompliance with Section 9.14 after giving effect to the removal of such
Borrowing Base Property from the Borrowing Base and any repayment of outstanding
Loans required by Section 4.02(c) in connection therewith, (ii) a new Borrowing
Base Certificate pursuant to Section 8.01(j)(iv), and(iii) any repayment of
outstanding Loans as, and to the extent, required by
Section 4.02(c). Upon the
satisfaction of the requirements set forth in this Section 8.13(b) with respect
to a Borrowing Base Property, such Borrowing Base Property shall no longer be a
Borrowing Base Property and shall be removed from the Borrowing Base, in each
case on the applicable Release Date, and the Subsidiary Guarantor which is the
owner thereof shall, unless such Subsidiary Guarantor is a Subsidiary Guarantor
described in Section 8.13(f) or such Subsidiary Guarantor
continues to own or
lease one or more other Borrowing Base Properties, be released from its
obligations under the Subsidiaries Guaranty without any further action on the
part of any party hereto. To the extent that any Subsidiary Guarantor is
released from its obligations under the Subsidiaries Guaranty by operation of
this Section 8.13(b), the Administrative Agent shall be authorized to,and
hereby agrees that it will, at the request and the joint and several expense of
the Borrowers, execute such documentation as may be necessary to evidence such
release (which documentation shall be in form and substance reasonably
satisfactory to the Administration Agent).

          (c) In the event that at any time any Borrowing Base Property fails to
satisfy each of the Borrowing Base Property Conditions, the Borrowers may elect
to remove such Borrowing Base Property from the Borrowing Base pursuant to
Section 8.13(b). Upon the

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satisfaction of the requirements set forth in Section 8.13(b) with respect to
such Borrowing Base Property, such Borrowing Base Property shall no longer be
a Borrowing Base Property and shall be removed from the Borrowing Base, in
each case on the applicable Release Date, and, provided that no Default or
Event of Default then exists, the Subsidiary Guarantor which is the owner
thereof shall, unless such Subsidiary Guarantor is a Subsidiary Guarantor
described in Section 8.13(f) or such Subsidiary Guarantor continues to own or
lease one or more other Borrowing Base Properties, be released from its
obligations under the Subsidiaries Guaranty without any further action on the
part of any party hereto. To the extent that any Subsidiary Guarantor is
released from its obligations under the Subsidiaries Guaranty by operation of
this Section 8.13(c), the Administrative Agent shall be authorized to, and
hereby agrees that it will, at the request and the joint and several expense
of the Borrowers, execute such documentation as may be necessary to evidence
such release (which documentation shall be in form and substance reasonably
satisfactory to the Administrative Agent).

          (d) In the event that the Borrowing Base Properties included in the
Borrowing Base (excluding any Excluded Borrowing Base Properties) shall not be
greater than (i) 80% leased in the aggregate (based on rentable square footage)
during the period extending from the Effective Date to the first anniversary
thereof (ii) 82.5% leased in the aggregate (based on rentable square footage)
during the period extending from the day immediately following the first
anniversary of the Effective Date to the second anniversary thereof and (iii)
85% leased in the aggregate (based on rentable square footage) thereafter (the
“Lease-Up Condition”), then,within 10 days of such condition not being
satisfied, the Borrowers shall designate (an“Excluded Borrowing Base Property
Designation”) one or more Borrowing Base Properties as Excluded Borrowing Base
Properties such that, following such designation, the Lease-Up Condition will be
satisfied. Each Excluded Borrowing Base Property Designation shall
be delivered to the Administrative Agent and each Lender and shall be
accompanied by (i) a new Borrowing Base Certificate pursuant to Section 8.01
(j)(v) and (ii) any repayment of outstanding Loans as, and to the extent,
required by Section 4.02(c).

          (e) At any time and from time to time but only so long as no Default
(unless any existing Default would be cured as a result thereof) or Event of
Default then exists or would result therefrom, Trizec shall have the right to
sell 331/3% of the Equity Interests in Holdings (if Holdings is converted into
the Additional Borrower) or in any other Additional Borrower if formed, and each
of the Borrowers shall have the right to sell Equity Interests in any
Subsidiary Guarantor, in each case upon written notice to the Administrative
Agent. Each such written notice shall be accompanied by (i) a certificate of a
Senior Financial Officer of each of the Borrowers specifying the Equity
Interests to be sold and (x) certifying that no Default or Event of Default then
exists or, after taking the actions described in clause (iii) below in this
Section 8.13(e), would result therefrom and (y) that the Borrowing Base Property
Conditions continue to be satisfied as to the Borrowing Base Property(ies)
continued to be owned or leased by such Subsidiary Guarantor, (ii) a new
Borrowing Base Certificate pursuant to Section 8.01(j)(vi), and (iii) any
repayment of outstanding Loans as, and to the extent, required by Section
4.02(c).

          (f) The Borrowers shall cause any direct Subsidiary of Trizec which (i)
is formed after the Effective Date, (ii) owns, directly or indirectly, a Real
Estate Asset and (iii) is not then a Credit Party, to execute and deliver to
the Administrative Agent and each Lender a counterpart of the Subsidiaries
Guaranty together with all other relevant officer’s certificates,

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resolutions, opinions of counsel and other documentation of the type described
in Sections 5.02 and 5.03 as such Person would have had to deliver if such
Person were a Credit Party on the Effective Date.

          (g) Anything in this Agreement (including, without limitation, this
Section 8.13) to the contrary notwithstanding, at all times the Borrowing Base
shall consist of at least eight (8) Borrowing Base Properties.

          SECTION 9. Negative Covenants. Each of the Borrowers hereby covenants and
agrees that on and after the Effective Date and until the Total Commitment and
all Letters of Credit have terminated and the Loans, Notes and Unpaid Drawings
(in each case together with interest thereon) and all other Obligations
incurred hereunder and thereunder, are paid in full:

          9.01 Liens. The Borrowers will not, nor will any of the Borrowers permit
any of their respective Subsidiaries to, create, incur, assume or suffer to
exist any Lien upon any asset of any Credit Party (including, but not limited
to, any Borrowing Base Property (or any other Property thereon) or any capital
stock or other Equity Interest owned by such Credit Party) or on the capital
stock or other Equity Interest of the Additional Borrower if formed or any
Borrowing Base Property Owner (all of the foregoing assets and Equity
Interests subject to such restrictions are referred to as “Restricted
Property”), in either case whether now owned or leased or hereafter acquired
or leased, or sell any Restricted Property subject to an understanding or
agreement, contingent or otherwise, to repurchase such Restricted Property
(including sales of accounts receivable with or without recourse generated
from any of the Restricted Properties, but excluding (i) the right to sell,
transfer, convey or issue limited partnership interests (if the Additional
Borrower is a limited partnership) or non-managing member interests (if the
Additional Borrower is a limited liability company) in the Additional Borrower
so long as the condition set forth in Section 8.04(b)(ii) is not violated
thereby, and (ii) the right of any Person which is not Trizec or a Subsidiary
of Trizec to convert an Equity Interest in the Additional Borrower into an
Equity Interest in Trizec), or assign any right to receive the income or
profits therefrom or authorize the filing of any financing statements under
the UCC or any other similar notice Lien under any similar recording or notice
of statute, except (“Permitted Encumbrances”):

          (a) Liens for taxes, assessments or governmental charges or levies not yet
due or that are being contested in good faith by appropriate proceedings,
provided that adequate reserves with respect thereto are maintained in
conformity with GAAP and such proceedings have the effect of preventing the
forfeiture or sale of the Restricted Property subject to any such Lien;

          (b) (x) carriers’, warehousemen’s, mechanics’, suppliers’,
material men’s repairmen’s or other like Liens arising in the ordinary course of
business and (y) Liens on Real Estate Assets arising in the ordinary course of
business in favor of the Federal or any state or local government arising as a
result of noncompliance with any statute or regulation applicable to such Real
Estate Assets, in either case (in the case of preceding clauses (x) and (y))
that do not secure Indebtedness for borrowed money and either (i) have not been
outstanding for a period of more than 45 days and do not materially detract from
the value of the Restricted Property subject to any such Liens or materially
impair the use of such Restricted Property in the operation of the business of
such Credit Party or (ii) that are being contested in good faith by appropriate

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proceedings with respect to which adequate reserves have been maintained in
accordance with GAAP, which proceedings have the effect of preventing or
staying the forfeiture or sale of the Restricted Property subject to any such
Lien;

          (c) pledges or deposits in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other social security
legislation;

          (d) utility deposits and other deposits to secure the performance of bids,
trade contracts (other than for borrowed money), leases, purchase contracts,
construction contracts, governmental contracts, statutory obligations, surety
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

          (e) easements (including, without limitation, reciprocal easement
agreements and utility agreements), rights of way, covenants, conditions,
restrictions, consents, reservations, encroachments, variations and zoning and
other similar restrictions or encumbrances (whether or not recorded) incurred in
the ordinary course of business that do not in any case materially detract from
the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of any Credit Party;

          (f) Liens arising out of the existence of judgments or awards not
constituting a Default or an Event of Default under Section 10.06 and (i) which
have been or will be bonded (and the Lien thereby removed other than on any cash
serving as security for such bond) or released of record within thirty (30) days
after the date that such judgment or award is entered or (ii) in respect of
which any Credit Party shall in good faith be prosecuting an appeal or
proceedings for review and in respect of which there shall have been secured a
subsisting stay of execution pending such appeal or proceedings, provided that
(in the case of preceding clause (ii)) such Liens do not attach to any Borrowing
Base Property or the Equity Interests of the Additional Borrower if formed or
any Borrowing Base Property Owner;

          (g) (i) Leases affecting (x) any Initial Borrowing Base Property on
the Effective Date and (y) any Additional Borrowing Base Property on the
Addition Date applicable thereto, (ii) licenses, sublicenses, other Leases or
subleases entered into the ordinary course of business not interfering in any
material respect with the business of any Credit Party,
(ii) Liens arising from
precautionary Uniform Commercial Code financing statements regarding
operating leases, and (iii) statutory and common law landlords’ liens under
leases to which any Credit Party is a party;

          (h) Liens placed upon equipment, machinery or materials used in the
ordinary course of business of any Credit Party and placed at the time of the
acquisition thereof by such Credit Party or within 90 days thereafter to
secure Indebtedness incurred to pay all or a portion of the purchase price
thereof or to secure Indebtedness incurred solely for the purpose of financing
the acquisition of any such equipment, machinery or materials or extensions,
renewals or replacements of any of the foregoing for the same or a lesser
amount, provided that (i) the aggregate outstanding principal amount of all
such Indebtedness at any time that is allocable to, or otherwise associated
with, any Real Estate Asset shall not exceed $1,000,000 and (ii) in all
events, the Lien encumbering the equipment, machinery or materials so acquired
does not encumber any other asset of any Credit Party or any other Restricted
Property;

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          (i) Liens solely on the Equity Interests of a Subsidiary of any Borrower
(which is not Holdings or the Additional Borrower if formed or a Subsidiary
Guarantor) or on the Equity Interests of an Unconsolidated Entity, in any such
case which have been pledged to secure Indebtedness of such Subsidiary or
Unconsolidated Entity, provided that there is no Recourse to the Credit Party
pledging such Equity Interests or its Restricted Property except against the
pledged Equity Interests of the Subsidiary or Unconsolidated Entity that
incurred such Indebtedness;

          (j) Liens on Restricted Property (other than any Borrowing Base Property
(or any other Property thereon) or on the capital stock or other Equity
Interest of the Additional Borrower if formed or any Borrowing Base Property
Owner) in favor of, and owned by, any of the Borrowers; and

          (k) Liens on Restricted Property (other than any Borrowing Base Property
(or any other Property thereon) or on the capital stock or other Equity
Interest of the Additional Borrower if formed or any Borrowing Base Property
Owner or other Subsidiary Guarantor) which secure any Indebtedness permitted
under Section 9.04.

          9.02
Consolidation, Merger, Sale of Assets, etc. (a) The Borrowers will
not, nor will any of the Borrowers permit any other Credit Party to, wind up,
liquidate or dissolve its affairs, discontinue its business, or enter into any
transaction of merger or consolidation, or agree to do any of the foregoing at
any future time without a contingency relating to obtaining any required
approval hereunder, except that so long as no Specified Default or Event of
Default then exists or would result therefrom (including, without limitation,
an Event of Default under Section 8.04 or 10.09), the following shall be
permitted: (i) any then existing Subsidiary of any of the Borrowers may be
merged or consolidated with or into, or be liquidated into, a Borrower (so long
as such Borrower is the surviving Company), or a Subsidiary Guarantor (so long
as a Subsidiary Guarantor is the surviving Company), (ii) any Person that is
not a Subsidiary of any of the Borrowers at such time may be merged or
consolidated with or into, or liquidated into, a Borrower (so long as such
Borrower is the surviving Company), or a Subsidiary Guarantor (so long as the
Subsidiary Guarantor is the surviving Company), provided that, in the case of
this clause (ii), (x) the Person which is merged or consolidated into such
Credit Party is predominantly in the commercial real estate business, (y) if
rated, the creditworthiness of Trizec’s long term unsecured debt or implied
senior debt, as applicable, after giving effect to such merger or consolidation
is not lower than Trizec’s creditworthiness two months immediately preceding
such merger or consolidation, and (z) the then fair market value of the assets
of the Person which is merged or consolidated into such Credit Party is less
than 25% of Trizec’s then Consolidated Total Asset Value after giving effect to
such merger or consolidation on a Pro Forma Basis, and (iii) Holdings and any
Subsidiary Guarantor may be converted into a limited liability company by
statutory election or by merger into another Subsidiary of any Borrower which
is already a limited liability company.

          (b) The Borrowers will not, nor will any of the Borrowers permit any of
its Subsidiaries to, consummate any Asset Sale, except that during any fiscal
quarter of Trizec, any of the Borrowers and their respective Subsidiaries may
effect an Asset Sale so long as (i) no Specified Default or Event of Default
then exists or would result therefrom, (ii) the consideration received (taking
the amount of all cash and the fair market value, as reasonably determined by

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the Borrowers, of all non-cash consideration) from such Asset Sale, together
with the aggregate consideration received from all other Asset Sales effected
by each of the Borrowers and its Subsidiaries during such fiscal quarter
simultaneously with or prior to such Asset Sale, shall not exceed 5% of the
Fair Market Value of Trizec unless the Borrowers shall have given the
Administrative Agent prior written notice of such Asset Sale, which notice
shall be accompanied by a certificate of a Senior Financial Officer of each of
the Borrowers certifying (and showing the calculations therefor in reasonable
detail) that Trizec will be in compliance with Sections 9.10 and 9.11 after
giving effect to such Asset Sale, and (iii) in the event that any such Asset
Sale includes a Borrowing Base Property or any Equity Interests in any
Subsidiary Guarantor, the Borrowers also shall have complied with the
provisions of Section 8.13(b).

          (c) Without limiting the foregoing provisions of this Section 9.02, in no
event shall any of the Borrowers or any of their respective Subsidiaries
convey, lease, sell, transfer or otherwise dispose of, in one transaction or a
series of transactions, (i) (x) any Equity Interests in Holdings or any
Subsidiary Guarantor described in Section 8.13(f) (other than the transfer of
all of such Equity Interests to Holdings, if Holdings is the Additional
Borrower, or any other Additional Borrower if formed) and
(y) more than 331/3%
of the Equity Interests in Holdings (if Holdings is converted into the
Additional Borrower) or in any other Additional Borrower if formed or (ii) all
or substantially all of the assets or business of the Borrowers and their
Subsidiaries taken as a whole.

          9.03 Dividends. The Borrowers will not, nor will any of the Borrowers
permit any of their respective Subsidiaries to, authorize, declare, pay or
make any Dividends except:

          (a) any Subsidiary of any of the Borrowers may distribute Dividends
to holders of its Equity Interests, in each case so long as any of the Borrowers
or any Subsidiary of any of the Borrowers which owns an Equity Interest in such
Subsidiary receives a percentage of any such Dividends which is at least equal
to its percentage Equity Interest in its respective Subsidiary distributing the
Dividend (taking into account, however, the relative preferences, if any, of the
various classes of Equity Interest of such Subsidiary); and

          (b) (i) Trizec may from time to time pay Dividends to the owners of its
Equity Interests (including, without limitation, Dividends consisting of the
repurchase of any such Equity Interests) so long as (x) the aggregate amount of
all such Dividends paid or made by Trizec in any fiscal year of Trizec does not
exceed 90% of Funds From Operations of Trizec for such fiscal year and (y) the
aggregate amount of all such Dividends paid or made by Trizec for the first
three fiscal quarters of Trizec in any fiscal year of Trizec, does not exceed
100% of Funds From Operations of Trizec for such three fiscal quarter period;
provided, however, at any time that a Specified Default or an Event of Default
then exists or would result therefrom, Dividends pursuant to this Section
9.03(b)(i) shall be limited to that amount necessary for Trizec to maintain its
status as a real estate investment trust under Sections 856 through 860 of
the Code; and

          (ii) Holdings (if Holdings is converted into the Additional Borrower) or
any other Additional Borrower if formed may pay Dividends to Trizec (or a
Wholly-Owned Subsidiary of Trizec) and all other holders of Equity Interests
in the Additional Borrower (including, without limitation, but subject to
Section 8.04(b)(ii), Dividends consisting of the

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repurchase of any such Equity Interests) so long as (x) the aggregate amount of
all such Dividends paid or made by the Additional Borrower in any fiscal year
of the Additional Borrower does not exceed 90% of Funds From Operations of the
Additional Borrower for such fiscal year and (y) the aggregate amount of all
such Dividends paid or made by the Additional Borrower for the first three
fiscal quarters of the Additional Borrower in any fiscal year of the Additional
Borrower does not exceed 100% of Funds From Operations of the Additional
Borrower for such three fiscal quarter period; provided, however, at any time
that a Specified Default or an Event of Default then exists or would result
therefrom, Dividends pursuant to this Section 9.03(b)(ii) shall be limited to
that amount necessary for Trizec to maintain its status as a real estate
investment trust under Section 856 through 860 of the Code.

          9.04 Indebtedness. The Borrowers will not, nor will any of the Borrowers
permit any of their respective Subsidiaries to, contract, create, incur, assume
or suffer to exist any Indebtedness except:

          (a) Each of the Borrowers and its Subsidiaries may contract, create,
incur, assume or suffer to exist Indebtedness, in each case so long as (i) no
Specified Default or any Event of Default then exists or would result
there from
(provided that, notwithstanding the existence of any Specified Default or Event
of Default, any such Subsidiary may refinance any Secured Indebtedness to the
extent that any such refinancing occurs no earlier than six months prior to the
final scheduled maturity of such Secured Indebtedness) and (ii) based on
calculations made by the Borrowers, (x) Trizec will be in compliance with
Sections 9.10 - 9.14 and (y) a Borrowing Base Deficiency will not exist, in each
case after giving effect to the incurrence of the respective Indebtedness;

          (b) Indebtedness under Interest Rate Hedges entered into with respect to
other Indebtedness permitted under this Section 9.04 so long as the terms and
conditions of such Interest Rate Hedges are consistent with past practice of
Trizec and its Subsidiaries and are entered into for bona fide hedging purposes
and not for speculative purposes; and

          (c) Indebtedness with respect to performance bonds, surety bonds,
appeal bonds or custom bonds required in the ordinary course of business or in
connection with the enforcement of rights or claims of any of the Borrowers or
any of their respective Subsidiaries.

          Without limiting the provisions of clauses (a) through (c) of this
Section 9.04, (i) the terms and conditions of any Unsecured Indebtedness that
is Recourse to any Credit Party may not be more restrictive in any material
respect than the terms and conditions under this Agreement and the other
Credit Documents and (ii) Trizec (but not any other Credit Party) may incur
Unsecured Indebtedness under guaranties by it of the Secured Consolidated
Total Indebtedness of its Subsidiaries.

          9.05 Limitation on Modifications of Certificate of Incorporation, By-Laws
and Certain Other Agreements; etc. The Borrowers will not, nor will any of the
Borrowers permit any other Credit Party to, amend, modify or change its
certificate of incorporation (including,without limitation, by the filing or
modification of any certificate of designation) or by-laws (or equivalent
organizational document) or any agreement entered into by it with respect to
its Equity Interests, or enter into any new agreement with respect to its Equity
Interests unless such

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amendment, modification, change or other action, either individually or in the
aggregate, could not be reasonably expected to have a Material Adverse Effect
or be adverse to the Lenders in any material respect; provided, however, that
in the event Trizec that elects to form an operating “upreit” entity by converting Holdings into a
limited liability company, the corporate organizational documents of Holdings
may be converted to limited liability company organizational documents whose
terms are consistent with the organizational documents which are customary for
an operating “upreit” entity.

          9.06
Investments. (a) The Borrowers will not, nor will any of the
Borrowers permit any of its Subsidiaries to, make or maintain any Investments in
Land under Development, Land Held for Development, Joint Ventures, Mortgage
Interests, seller financing received in connection with Asset Sales, and
investments in real estate technology companies (each a“Restricted Holding”),
except that Investments in Restricted Holdings may be made and maintained so
long as the aggregate value of all such Restricted Holdings (without
duplication) does not exceed 25% of the Consolidated Total Asset Value of Trizec
at any time.

          (b) Notwithstanding the foregoing, the Borrowers will not, nor will
either of the Borrowers permit any of its Subsidiaries to, make or maintain
Investments in any Real Estate Asset that is not an office property, except
that Investments in Real Estate Assets that are not office properties may be
made and maintained so long as the aggregate value of all such Real Estate
Assets does not exceed 10% of the Consolidated Total Asset Value of Trizec at
any time. A Real Estate Asset shall not cease to be an office property for
purposes of this Section 9.06(b) even though such Real Estate Asset includes
retail property which is incorporated into or immediately adjacent to such
Real Estate Asset or parking facilities which are in the vicinity of and
incidental to the use of such Real Estate Asset as an office property.

          9.07 Negative Pledge Clauses; etc. The Borrowers will not, nor will any
of the Borrowers permit any of their respective Subsidiaries to, enter into or
suffer to exist or become effective any agreement that (x) prohibits or limits
the ability of any Credit Party or any of its Subsidiaries to create, incur,
assume or suffer to exist any Lien upon any Restricted Property or any revenues
therefrom, whether now owned or hereafter acquired, or (y) requires that, upon
the creation, incurrence, assumption or existence of any Lien upon any of its
assets or revenues,whether now owned or hereafter acquired, a Lien (whether
“equal and ratable,” senior, junior or otherwise) be created on any Restricted
Property to secure any other Indebtedness or obligations,except that (a) the
provisions contained in this Agreement and the other Credit Documents
shall be
permitted, (b) any agreements governing any Secured Indebtedness permitted
under Sections 9.01(h) and (k) shall be permitted to contain prohibitions or
limitations of the type described in the preceding clause (x) (in which case,
any such prohibition or limitation shall only be effective against the
equipment, machinery or materials financed thereby, or in the case of such
Section 9.01(k), the Property subject to such Liens), (c) agreements governing
the Liens permitted by Section 9.01(i) shall be permitted to contain
prohibitions or limitations of the type described in the preceding clause (x) so
long as such restrictions shall only be effective against the Equity Interests
subject to such Liens, (d) customary restrictions with respect to assets
imposed pursuant to an agreement that has been entered into in connection with
an Asset Sale of such assets as otherwise permitted under this Agreement shall
be permitted, (e) Unsecured Indebtedness of Trizec that is issued pursuant to an
effective registration statement under the Securities Act or in a transaction
exempt from registration pursuant to Rule 144A or Regulation S promulgated

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thereunder or which is listed on a non-U.S. securities exchange may contain an
“equal and ratable” clause effective only upon the creation of any Lien on any
Restricted Property in favor of the Administrative Agent for the benefit of
the Lenders, and (f) in the case of clause (x) of this Section 9.07, customary
provisions restricting assignment of any lease under which the Borrowers or
any of their respective Subsidiaries is the tenant or subletting space demised
under any such lease.

          9.08 Transactions with Affiliates. The Borrowers will not, nor will any
of the Borrowers permit any of their respective Subsidiaries to, enter into any
transaction or series of related transactions, with any Affiliate of any of the
Borrowers or any Subsidiary of any of the Borrowers, other than on terms and
conditions no less favorable to such Borrower or such Subsidiary as would
reasonably be obtained by such Person at that time in a comparable arm’s-length
transaction with a Person other than an Affiliate of any of the Borrowers,
except that:

     (a) any of the Borrowers and their respective Subsidiaries may enter
into employment arrangements with respect to the procurement of services
of its respective officers and employees in the ordinary course of
business, including executive compensation arrangements; and

     (b) transactions between or among the Borrowers and their
Subsidiaries shall be permitted in the ordinary course of business;
provided, however, that all transactions relating to any Borrowing Base
Property or the Equity Interests of the Borrowing Base Property Owner
thereof which involve a Credit Party and a Subsidiary which is not
a Credit Party shall be required to be on terms and conditions no less
favorable to such Credit Party as would reasonably be obtained by such
Credit Party at the time in a comparable arm’s-length transaction with a
Person other than an Affiliate of such Credit Party (other than with
respect to (x) the sale, transfer or other disposition of Real
Estate Assets (other than a Borrowing Base Property or the Equity
Interests of the Borrowing Base Property Owner thereof) and (y)
guaranties and other credit support or enhancements given by (A)
any of the Borrowers in favor of any of the other Borrowers or any of the
Consolidated Entities or Unconsolidated Entities of any of the Borrowers
in the ordinary course of business, or (B) any Subsidiary Guarantor
described in Section 8.13(f) in favor of any of its Subsidiaries in the
ordinary course of business; and

     (c) tax cooperation arrangements and indemnifications for
obligations relating to Property of any of the Borrowers or their
respective Consolidated Entities or Unconsolidated Entities for which the
indemnified party no longer has an interest other than through its
ownership interest in any of the Borrowers shall be permitted so long
as the effect of such transactions, either individually or in the
aggregate, could not reasonably be expected to have a Material Adverse
Effect.

          9.09 Management Agreements. The Borrowers will not, nor will any of
the Borrowers permit any of their respective Subsidiaries to, enter into any
management agreement or similar agreement granting to any Person (other than in
the case of any Subsidiary of any of the Borrowers, any of the Borrowers or any
other Wholly-Owned Subsidiary of any of the Borrowers (a) authority over the
leasing, maintenance or operation of any Borrowing Base Property or (b)
substantial authority over the leasing, maintenance or operation of any other
Real

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Property owned or leased by any of the Borrowers or such Subsidiary, as the
case may be, on terms less favorable to any of the Borrowers or such
Subsidiary, as the case may be, than the market standard on the date of such
agreement.

          9.10 Consolidated Total Indebtedness as a Percentage of Consolidated
Total Asset Value. Trizec will not permit its Consolidated Total Indebtedness
(a) on any date during the period extending from the Effective Date to the first
anniversary of the Effective Date to exceed an amount which is 65%, (b) on any
date during the period extending from the day immediately following the first
anniversary of the Effective Date to the second anniversary of the Effective
Date to exceed 62.5% and (c) on any date thereafter to exceed 60%, in each case
of the Consolidated Total Asset Value of Trizec as at the last day of the most
recently ended fiscal quarter of Trizec; provided that in determining such
Consolidated Total Asset Value, such determination shall be made on a Pro Forma
Basis to give effect to any sales and acquisitions of Real Estate Assets
effected after the last day of any such fiscal quarter and on or prior to the
date of any determination pursuant to this Section 9.10.

          9.11 Consolidated Net Worth. Trizec will not permit its Consolidated Net
Worth on any date to be less than the sum of (i) $1,500,000,000, plus (ii) 75%
of the aggregate cash proceeds received by any of the Borrowers after the
Effective Date in connection with any equity offering by, or capital
contribution to, any of the Borrowers (net of fees and expenses customarily
incurred in transactions of such type) (other than a contribution or purchase
of equity interests by one Borrower to or in another Borrower and other than
proceeds received within ninety (90) days after the redemption, retirement or
repurchase of ownership or equity interests in any Borrower, up to the amount
paid by the Borrowers in connection with such redemption, retirement or
repurchase, where, for the avoidance of doubt, the net effect is that Trizec
shall not have increased its Net Worth as a result of any such proceeds).

          9.12 Consolidated Interest Coverage Ratio. Trizec will not
permit its Consolidated Interest Coverage Ratio for any Test Period to be less
than 2.00:1.00.

          9.13 Consolidated Fixed Charge Coverage Ratio. Trizec will not permit
its Consolidated Fixed Charge Coverage Ratio for any Test Period to be less than
1.50:1.00.

          9.14 Borrowing Base Property Coverage Ratio. Trizec will not permit
the Borrowing Base Property Coverage Ratio on any date to be less than
1.50:1.00.

          9.15 Limitation on Certain Restrictions on Subsidiaries. The Borrowers
will not, and will not permit any of the Subsidiary Guarantors to, directly or
indirectly, create or otherwise cause or suffer to exist or become effective any
encumbrance or restriction on (including, without limitation, any requirement
that excess cash flow be used to repay other Indebtedness) the ability of
Holdings or any such Subsidiary to (a) pay Dividends or make any
other distributions on its capital stock or any other interest or participation
in its profits owned by any of the Borrowers or any Subsidiary of any of the
Borrowers, or pay any Indebtedness owed to any of the Borrowers or a Subsidiary
of any of the Borrowers, (b) make loans or advances to any of the Borrowers, or
any Subsidiary of any of the Borrowers or (c) transfer any of
its properties or
assets to any of the Borrowers or any Subsidiary of any of the Borrowers,
except for such encumbrances or restrictions existing under or by reason of (i)
applicable law, (ii) this

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Agreement and the other Credit Documents, (iii) customary provisions
restricting subletting or assignment of any lease governing a leasehold
interest of any of the Borrowers or such Subsidiary, (iv) customary provisions
restricting assignment of any contract entered into by any of the Borrowers or
such Subsidiary in the ordinary course of business, and (v) any restrictions
imposed by any holder of a Permitted Encumbrance on the transfer of the asset
or assets subject thereto.

          9.16
Affiliate Debt and Subordination Agreement. (a) Without limiting the
other provisions of this Agreement, the Borrowers will not, nor will any of the
Borrowers permit any of their respective Subsidiaries to, incur or create any
Indebtedness that is owed by a Credit Party to any Subsidiary of any of the
Borrowers that is not a Credit Party unless, in each case, the respective
Credit Party and each such Subsidiary has entered into the Subordination
Agreement.

          (b) The Borrowers will not, nor will any of the Borrowers permit any of
their respective Subsidiaries to, make any payment on any Affiliate Debt to the
extent that such payment is not permitted to be paid at such time pursuant to
the Subordination Agreement.

          (c) At such time, if any, as an obligor in respect of any Affiliate Debt
ceases to be a Credit Party or any obligee in respect of any Affiliate Debt
ceases to be a Person which is required to be a party to the Subordination
Agreement by operation of this Section 9.16, the Borrowers may request that any
such obligor or obligee be released from the provisions of the Subordination
Agreement and the Administrative Agent shall be authorized to, and
hereby agrees
that it will, at the request and the expense of the Borrowers, execute such
documentation as may be necessary to evidence such release (which documentation
shall be in form and substance reasonably satisfactory to the Administrative
Agent).

          SECTION 10. Events of Default. Upon the occurrence of any of the
following specified events (each an “Event of Default”):

          10.01 Payments. The Borrowers shall (i) default in the payment when due of
any principal of any Loan or any Note, (ii) default, and such default shall
continue unremedied for five or more Business Days, in the payment when due of
any interest on any Loan or Note, any Unpaid Drawing or any Fees, or (iii)
default, and such default shall continue unremedied for 10 or more Business
Days, in the payment when due of any other amount owing hereunder or
under any
of the other Credit Documents; or

          10.02 Representations, etc. Any representation, warranty or statement
made or deemed made by any Credit Party herein or in any other Credit Document
or in any certificate delivered to the Administrative Agent or any Lender
pursuant hereto or thereto shall prove to be untrue in any material respect on
the date as of which made or deemed made; or

          10.03 Covenants. Any of the Borrowers or any of their respective
Subsidiaries shall (i) default in the due performance or observance by it of any
term, covenant or agreement contained in Sections 8.01(f)(i), 8.04, 8.10, 8.12,
8.13(b) or Section 9 (other than Sections 9.08, 9.09 and 9.14), (ii) default in
the due performance or observance by it of any term, covenant or agreement
contained in Section 9.14 and such default shall not be cured within 10 days
after the occurrence of such default pursuant to Section 4.02(c), or (iii)
default in the due performance or

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observance by it of any other term, covenant or agreement contained in this
Agreement or in any other Credit Document (other than those set forth in
Sections 10.01 and 10.02 and clauses (i) and (ii) of this Section 10.03) and
such default as described in this clause (iii) shall continue unremedied for a
period of 30 days after written notice thereof to the Borrowers by the
Administrative Agent or the Required Lenders, provided, however, that if any
such default as described in this clause (iii) is of the type which cannot be
cured within such 30-day period (and is curable after such period), such
default shall not be an Event of Default hereunder if the Borrowers, within
such 30-day period, shall have commenced and shall be diligently pursuing such
cure and the Borrowers shall have such additional time as is reasonably
required to effect such cure, but in no event in excess of 75 days from the
date of such default; or

          10.04 Default Under Other Agreements. Any Credit Party shall (x) default in
any payment of any Indebtedness which is Recourse to any Credit Party (other
than the Obligations) beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created or (y) default
in the observance or performance of any agreement or condition relating to any
Indebtedness (other than the Obligations) or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur or condition shall exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
(or a trustee or agent on behalf of such holder or holders) to cause (determined
without regard to whether any notice of acceleration or similar notice is
required), any such Indebtedness to become (or to be declared) due prior to its
stated maturity, provided that it shall not be a Default or an Event of Default
under this Section 10.04 unless the aggregate principal amount of all
Indebtedness outstanding at such time as described in preceding clauses (x) and
(y) is at least $50,000,000; or

          10.05 Bankruptcy, etc. Any Credit Party shall commence a voluntary
case concerning itself under Title 11 of the United States Code entitled
“Bankruptcy,” as now or hereafter in effect, or any successor thereto (the
“Bankruptcy Code”); or an involuntary case is commenced against any Credit Party
and the petition is not controverted within 15 days after the earlier of (x)
actual knowledge by a Credit Party of the commencement of such case and
(y)service on a Credit Party of the applicable summons, or the petition is not
dismissed within 60 days after commencement of the case; or any Credit Party
commences any other proceeding under any reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency, receivership,
administration or liquidation or similar law of any jurisdiction
whether now or
hereafter in effect relating to any Credit Party, or there is commenced against
any Credit Party any such proceeding which remains undismissed for a period of
60 days, or any Credit Party is adjudicated insolvent or bankrupt; or any order
of relief or other order approving any such case or proceeding is entered; or
any Credit Party suffers any appointment of any custodian, administrator,
administrative receiver or the like for it or any substantial part of its
property to continue undischarged or unstayed for a period of 60 days; or any
Credit Party makes a general assignment for the benefit of creditors; or any
Company action is taken by any Credit Party for the purpose of effecting any of
the foregoing; or

          10.06 Judgments. One or more judgments or decrees shall be entered against
any Credit Party involving in the aggregate for the Credit Parties a liability
or liabilities (not paid or fully covered by a reputable and solvent insurance
company), and such judgments and decrees either shall be final and
non-appealable or shall not be vacated, discharged or stayed or bonded

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pending appeal for any period of 30 consecutive days, and the aggregate amount
of all such judgments exceeds $25,000,000; or

          10.07 ERISA. (a) Any Plan shall fail to satisfy the minimum funding
standard required for any plan year or part thereof under Section 412 of the
Code or Section 302 of ERISA or a waiver of such standard or extension of any
amortization period is sought or granted under Section 412 of the Code or
Section 303 or 304 of ERISA, a Reportable Event shall have occurred, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA shall be subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 (without regard to subparagraph
(b)(l) thereof) and an event described in subsection .62, .63, .64, .65, .66,
..67 or .68 of PBGC
Regulation Section 4043 shall be reasonably expected to occur
with respect to such Plan within the following 30 days, any Plan which
is subject to Title IV of ERISA shall have had or is reasonably likely to have a
trustee appointed to administer such Plan, any Plan or Multiemployer Plan which
is subject to Title IV of ERISA is,shall have been or is reasonably likely to
be terminated or to be the subject of termination proceedings under ERISA, any
Plan shall have an Unfunded Current Liability, a contribution required to be
made with respect to a Plan or Multiemployer Plan or a Foreign Pension Plan
has not been timely made, the Borrowers, any Subsidiary of any of them or any
ERISA Group member has incurred or is reasonably likely to incur any liability
to or on account of a Plan or Multiemployer Plan under Section 409, 502(i),
502(1), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section
401(a)(29), 4971 or 4975 of the Code or on account of a group health plan (as
defined in Section 607(1) of ERISA, Section 4980B(g)(2) of the Code or 45
Code of Federal Regulations Section 160.103) under Section 4980B of the Code
and/or the Health Insurance Portability and Accountability Act of 1996, or the
Borrowers, or any Subsidiary of any of them has incurred or is reasonably likely
to incur liabilities pursuant to one or more employee welfare benefit plans (as
defined in Section 3(1) of ERISA) that provide benefits to
retired employees or
other former employees (other than as required by Section 601 of ERISA) or
Plans or Foreign Pension Plans, a “default,” within the meaning of Section
4219(c)(5) of ERISA, shall occur with respect to any Multiemployer Plan; any
applicable law, rule or regulation is adopted,changed or interpreted, or the
interpretation or administration thereof is changed, in each case after the date
hereof, by any governmental authority or agency or by any court (a “Change
in Law”), or, as a result of a Change in Law, an event occurs following a Change
in Law, with respect to or otherwise affecting any Plan or Multiemployer Plan;
(b) there shall result from any such event or events described in subsection (a)
the imposition of a lien, the granting of a security interest, or a liability or
a material risk of incurring a liability; and (c) such lien,
security interest
or liability, individually, and/or in the aggregate has had, or is reasonably
likely to have,a Material Adverse Effect; or

          10.08 Guaranties, etc. The Subsidiaries Guaranty or any provision thereof
(other than an immaterial provision) shall cease to be in full force or effect
as to any Subsidiary Guarantor, or any Subsidiary Guarantor or Person acting by
or on behalf of such Subsidiary Guarantor shall deny or disaffirm such
Subsidiary Guarantor’s obligations under the Subsidiaries Guaranty, or any
Subsidiary Guarantor shall default in the due performance or observance of
any term, covenant or agreement on its part to be performed or observed pursuant
to the Subsidiaries Guaranty beyond the expiration of any applicable grace or
cure period provided for therein; or

          10.09 Change of Control. A Change of Control shall occur; or

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          10.10 Stock Exchange Listing. The common stock of Trizec shall for any
reason whatsoever cease to be listed on the New York Stock Exchange, the
American Stock Exchange, NASDAQ or another major United States stock exchange;

          then, and in any such event, and at any time thereafter, if any Event of
Default shall then be continuing, the Administrative Agent, upon the written
request of the Required Lenders, shall by written notice to the Borrowers, take
any or all of the following actions, without prejudice to the rights of the
Administrative Agent, any Lender or the holder of any Note to enforce its
claims against the Borrowers and the other Credit Parties (provided that if an
Event of Default specified in Section 10.05 shall occur with respect to any of
the Borrowers, the result which would occur upon the giving of written notice
by the Administrative Agent as specified in clauses (i) and (ii) below shall
occur automatically without the giving of any such notice): (i) declare the
Total Commitment terminated, whereupon the Term Loan Commitment and/or
Revolving Loan Commitment of each Lender shall forthwith terminate immediately
and any Commitment Commission and Facility Fee shall become, forthwith due and
payable without any other notice of any kind; (ii) declare the principal of and
any accrued interest in respect of all Loans and the Notes and all Obligations
owing hereunder and thereunder to be, whereupon the same shall become,
forthwith due and payable without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by the Borrowers; (iii) terminate
any Letter of Credit which may be terminated in accordance with its terms; (iv)
direct the Borrowers to pay (and each of the Borrowers jointly and severally
agrees that upon receipt of such notice, or upon the occurrence of an Event of
Default specified in Section 10.05 with respect to any of the Borrowers, it
will pay) to the Administrative Agent at the Payment Office such additional
amount of cash or Cash Equivalents, to be held as security by the
Administrative Agent, as is equal to the aggregate Stated Amount of all Letters
of Credit issued for the account of the Borrowers and then outstanding; (v)
apply any cash collateral held by the Administrative Agent pursuant to Section
4.02 to the repayment of the Obligations; and (vi) enforce the rights granted
to the Administrative Agent and the Lenders pursuant to this Agreement, and the
other Credit Documents.

          SECTION 11. Definitions.

          11.01 Defined Terms. As used in this Agreement, the following terms shall
have the following meanings (such meanings to be equally applicable to both
the singular and plural forms of the terms defined):

          “Absolute Rate” shall mean an interest rate (rounded to the nearest
..0001) expressed as a decimal.

          “Absolute Rate Competitive Bid Borrowing” shall mean a Competitive Bid
Borrowing with respect to which the Borrowers have requested that the Bidder
Lenders offer to make Competitive Bid Loans at Absolute Rates.

          “Act” shall have the meaning provided in Section 13.23.

          “Addition Date” shall mean each date on which a Borrowing Base Property
is added to the Borrowing Base pursuant to Section 8.13(a).

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          “Additional Borrower” shall have the meaning provided in Section
8.04(b).

          “Additional Borrowing Base Property” shall have the meaning provided in
Section 8.13(a).

          “Additional Commitment” shall mean, for each Lender, any commitment to
make Revolving Loans and/or Term Loans provided by such Lender pursuant to
Section 1.16, in such amount as agreed to by such Lender in the respective
Additional Commitment Agreement; provided that on the Additional Commitment
Date upon which an Additional Commitment of any Lender becomes effective, such
Additional Commitment of such Lender shall be added to (and thereafter become a
part of) the Commitment of such Lender for all purposes of this Agreement as
contemplated by Section 1.16.

          “Additional Commitment Agreement” shall mean an Additional Commitment
Agreement substantially in the form of Exhibit N (appropriately completed).

          “Additional Commitment Date” shall mean each date upon which an
Additional Commitment under an Additional Commitment Agreement becomes
effective as provided in Section 1.16(b).

          “Additional Lender” shall have the meaning provided in Section
1.16(b).

          “Administrative Agent” shall mean DBTCA, in its capacity as
Administrative Agent for the Lenders hereunder, and shall include any
successor to the Administrative Agent appointed pursuant to Section 12.09.

          “Affiliate” shall mean, with respect to any Person, any other Person
directly or indirectly controlling (including, but not limited to, all
directors and officers of such Person), controlled by, or under direct or
indirect common control with, such Person. A Person shall be deemed to control
another Person if such Person possesses, directly or indirectly, the power (i)
to vote 10% or more of the Equity Interests having ordinary voting power for
the election of directors (or equivalent governing body) of such Person or (ii)
to direct or cause the direction of the management and policies of such other
Person, whether through the ownership of voting securities, by contract or
otherwise.

          “Affiliate Debt” shall mean any Indebtedness owed by any Credit Party to
any Subsidiary of any of the Borrowers which is not a Credit Party.

          “Agreement” shall mean this Credit Agreement, as modified, supplemented,
amended, restated (including any amendment and restatement hereof), extended
or renewed from time to time.

          “Applicable Commitment Commission Percentage” shall mean, for purposes of
calculating the Term Loan Commitment Commission on the Unutilized Term Loan
Commitment or the Revolving Loan Commitment Commission on the Unutilized
Revolving Loan Commitment, as applicable, of any Lender on any date, a
percentage per annum equal to that set forth below opposite the respective
Utilization Percentage on such date:

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	 	 	COMMITMENT COMMISSION
	UTILIZATION PERCENTAGE
	 	PERCENTAGE

	Less than 33%
	 	 	0.20	%
	Equal to or greater
than 33% but less than
or equal to 66%
	 	 	0.15	%
	Greater than 66%
	 	 	0.125	%

          “Applicable Credit Rating” shall mean (A) at a time when all three Rating
Agencies have provided a Credit Rating, (i) the Credit Rating, the S&P Credit
Rating and the Fitch Credit Rating, if all three are the same, and (ii) in the
event that the Moody’s Credit Rating, the S&P Credit Rating and the Fitch
Credit Rating are not all the same, the higher of the two lowest Credit
Ratings (unless the two lowest Credit Ratings are the same, in which case the
lowest Credit Rating), and (B) at a time when only two Rating Agencies have
provided a Credit Rating, (i) the Credit Ratings assigned by both Rating
Agencies, if both are the same, and (ii) if such Credit Ratings are different,
the lower Credit Rating.

          “Applicable Facility Fee Percentage” shall mean, from and after any Start
Date to and including the corresponding End Date at a time when the Investment
Grade Condition exists on such Start Date, the rate per annum set forth below
opposite the Applicable Credit Rating indicated to be in effect on such Start
Date as shown in the respective officer’s certificate delivered pursuant to
Section 8.01 (e) or the first proviso below):

	 	 	 	 	 
	APPLICABLE	 	APPLICABLE FACILITY
	CREDIT RATING
	 	FEE PERCENTAGE

	A-/A3 or higher
	 	 	0.15	%
	BBB+/Baal
	 	 	0.15	%
	BBB/Baa2
	 	 	0.20	%
	BBB-/Baa3
	 	 	0.20	%

; provided, however, that if Trizec fails to deliver the financial statements
required to be delivered pursuant to Section 8.01 (a) or (b)(A) (accompanied
by the officer’s certificate required to be delivered pursuant to Section
8.01(e) showing that the Investment Grade Rating Condition exists as of the
relevant Start Date and the Applicable Credit Rating as of such Start Date) on
or prior to the respective date required by such Sections, then, until such
time, if any, as the financial statements required as set forth above and the
accompanying officer’s certificate have been delivered showing that the
Investment Grade Rating Condition exists as of such Start Date and the
Applicable Credit Rating as of such Start Date, then an Investment Grade
Rating Condition shall not be in effect and the provisions of Sections
3.01(a)(i) and 3.01(b)(i) shall apply (it being understood that, in the case
of any late delivery of the financial statements and officer’s certificate as
so required showing that the Investment Grade Rating Condition exists as of
the relevant Start Date and the Applicable Credit Rating as of such Start
Date, the Applicable Facility Fee Percentage shall apply only from and after
the date of the delivery of the complying financial statements and officer’s
certificate); provided further, that the Applicable Facility Fee

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Percentage shall be 0.20% at all times when a Specified Default or an Event
of Default is in existence.

          “Applicable Laws” shall mean, collectively, all statutes, laws, rules,
regulations, ordinances, orders, decisions, writs, judgments, decrees and
injunctions of Governmental Authorities (including Environmental Law)
affecting any of the Borrowers, any other Credit Party or the Collateral or
any part thereof (including the acquisition, development, construction,
renovation, occupancy, use, improvement, alteration, management, operation,
maintenance, repair or restoration thereof), whether now or hereafter
enacted and in force, and all Authorizations relating thereto.

          “Applicable Margin” shall mean: (A) from and after any Start Date to and
including the corresponding End Date at a time when the Investment Grade
Rating Condition does not exist on such Start Date, with respect to Term
Loans, Revolving Loans and Swingline Loans, the respective percentage per
annum set forth below under the respective Type of Term Loans and Revolving
Loans and for Swingline Loans and (in each case) opposite the respective Level
(i.e., Level 1, Level 2, Level 3, Level 4 or Level 5, as the case may be)
indicated to have been achieved on the applicable Test Date for such Start
Date (as shown in the respective officer’s certificate delivered pursuant to
Section 8.01(e) or the first proviso below) (and with the “Ratio” described
below to be the Consolidated Total Indebtedness of Trizec as a percentage of
the Consolidated Total Asset Value of Trizec):

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Term Loans and	 	Term Loans and	 	 
	 	 	 	 	Revolving Loans	 	Revolving Loans	 	 
	 	 	 	 	maintained as Base	 	maintained as Eurodollar	 	Swingline
	Level
	 	Ratio
	 	Rate Loans
	 	Rate Loans
	 	Loans

	1
	 	Less than or equal to 45%	 	0.00%	 	1.15%	 	1.40%
	2
	 	Greater than 45% but less than or equal to 50%	 	0.10%	 	1.35%	 	1.60%
	3
	 	Greater than 50%
but less than or equal to 55%	 	0.25%	 	1.50%	 	1.75%
	4
	 	Greater than 55% but less than or equal to 60%	 	0.40%	 	1.65%	 	1.90%
	5
	 	Greater than 60%	 	0.75%	 	2.00%	 	2.25%

; provided, however, that Level 3 pricing will be in effect at all times
during the period extending from the Effective Date to the date on which the
Borrowers deliver to the Administrative Agent a Compliance Certificate with
respect to the period ending June 30, 2004 under and in satisfaction of the
requirements of Section 8.01(e); provided further, if Trizec fails to
deliver the financial

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statements required to be delivered pursuant to Section 8.01 (a) or (b)(A)
(accompanied by the officer’s certificate required to be delivered pursuant to
Section 8.01(e) showing the applicable Ratio on the relevant Test Date) on or
prior to the respective date required by such Sections, then Level 5 pricing
shall apply until such time, if any, as the financial statements required as
set forth above and the accompanying officer’s certificate have been delivered
showing the pricing for the respective Pricing Period is at a level which is
less than Level 5 (it being understood that, in the case of any late delivery
of the financial statements and officer’s certificate as so required, any
reduction in the Applicable Margin shall apply only from and after the date of
the delivery of the complying financial statements and officer’s certificate);
and provided, finally, that Level 5 pricing shall apply at all times when a
Specified Default is in existence; and

          (B) from and after any Start Date to and including the corresponding End
Date at a time when the Investment Grade Rating Condition exists on such Start
Date, with respect to Term Loans, Revolving Loans and Swingline Loans, the
respective percentage per annum set forth below under the respective Type of
Term Loans and Revolving Loans and for Swingline Loans and opposite the
respective Applicable Credit Rating indicated to be in effect on such Start
Date (as shown in the respective officer’s certificate delivered pursuant to
Section 8.01 (e) or the first proviso below):

	 	 	 	 	 	 	 
	 	 	Term Loans and Revolving	 	Term Loans and Revolving	 	 
	Applicable	 	Loans maintained as Base	 	Loans maintained as Eurodollar	 	Swingline
	Credit Rating
	 	Rate Loans
	 	Rate Loans
	 	Loans

	A-/A3 or higher
	 	0.00%	 	0.55%	 	0.80%
	BBB+/Baal
	 	0.00%	 	0.65%	 	0.90%
	BBB/Baa2
	 	0.00%	 	0.70%	 	0.95%
	BBB-/Baa3
	 	0.00%	 	0.90%	 	1.15%

; provided, however, that if Trizec fails to deliver the financial statements
required to be delivered pursuant to Section 8.01 (a) or (b)(A) (accompanied
by the officer’s certificate required to be delivered pursuant to Section
8.01(e) showing that the Investment Grade Rating Condition exists as of the
relevant Start Date and the Applicable Credit Rating as of such Start Date) on
or prior to the respective date required by such Sections, then, until such
time, if any, as the financial statements required as set forth above and the
accompanying officer’s certificate have been delivered showing that the
Investment Grade Rating Condition exists as of such Start Date and the
Applicable Credit Rating as of such Start Date, then an Investment Grade
Rating Condition shall not be in effect and the Applicable Margin will be
determined as provided in clause (A) of this definition (it being understood
that, in the case of any late delivery of the financial statements and
officer’s certificate as so required showing that the Investment Grade Rating
Condition exists as of the Start Date and the Applicable Credit rating as of
such Start Date, the Applicable Margin as determined pursuant to this clause
(B) shall apply only from and after the date of the delivery of the complying
financial statements and officer’s certificate); provided further, that the
Applicable Credit Rating shall be the lowest Applicable Credit Rating set
forth in the table above at all times when a Specified Default is in
existence.

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          “Asset Sale” shall mean any sale (including pursuant to sale-leaseback
transactions), transfer or other disposition by any of the Borrowers or any of
their respective Subsidiaries to any Person other than any of the Borrowers or
any Specified Subsidiary of any of the Borrowers of any Property (including,
without limitation, any Equity Interests or other securities of another Person,
but excluding the sale by any of the Borrowers of its own capital stock) of any
the Borrowers or any Subsidiary of any of the Borrowers other than (i) sales or
liquidations of Cash Equivalents, (ii) operating leases or subleases, licenses
and easements of any property by any of the Borrowers and any of their
respective Subsidiaries in the ordinary course of business, and (iii) the
licensing of intellectual property in the ordinary course of business. As used
in this definition, the term “Specified Subsidiary” shall mean any Subsidiary
of any of the Borrowers in which the percentage ownership interest of any of
the Borrowers is greater than or equal to the percentage ownership interest in
the respective Subsidiary of any of the Borrowers that is selling, transferring
or otherwise disposing of such Property.

          “Assignment and Assumption Agreement” shall mean an Assignment and
Assumption Agreement substantially in the form of Exhibit O (appropriately
completed).

          “Assumed Debt Service Amount” shall mean, as of any date of
determination, the product obtained by multiplying (x) all Unsecured
Consolidated Total Indebtedness of Trizec (including, without limitation,
outstanding Loans) as of such date by (y) the greatest of (a) the interest
rate constant equal to the sum of 2% plus the imputed 5-year US Treasury Notes
rate, assuming a 25-year mortgage style amortization schedule, (b) 7.50% and
(c) the sum of the three (3) month Eurodollar Rate and the then Applicable
Margin with respect to Revolving Loans.

          “Authorization” means any authorization, approval, franchise, license,
variance, land use entitlement, sewer and waste water discharge permit, storm
water discharge permit, air pollution authorization to operate, certificate of
occupancy, municipal water and sewer connection permit, and any like or
similar permit now or hereafter required for the construction or renovation of
any improvements located on any Borrowing Base Property or for the use,
occupancy or operation of any Borrowing Base Property and all amendments,
modifications, supplements and addenda thereto.

          “Bankruptcy Code” shall have the meaning provided in Section 10.05.

          “Base Rate” at any time shall mean (x) except as provided in succeeding
clause (y), the higher of (i) 1/2 of 1% in excess of the overnight Federal
Funds Rate and (ii) the Prime Lending Rate, and (y) in the case of calculating
interest on outstanding Swingline Loans, the overnight Federal Funds Rate.

          “Base Rate Loan” shall mean (i) each Swingline Loan and (ii) each Term
Loan and Revolving Loan designated or deemed designated as such by the
Borrowers at the time of the incurrence thereof or conversion thereto.

          “Bidder Lender” shall mean each Lender that has informed the
Administrative Agent and the Borrowers in writing (which has not been
retracted) that such Lender desires to participate generally in the bidding
arrangements relating to Competitive Bid Borrowings.

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          “BofA Plaza” shall mean the Real Estate Asset commonly known as Bank of
America Plaza and located at 101 South Tryon Street, Charlotte, North Carolina.

          “Borrowers” shall mean Trizec, Holdings and, from and after the date an
Additional Borrower becomes a Credit Party hereunder, the Additional Borrower
(if other than Holdings).

          “Borrowing” shall mean (i) the borrowing of one Type of Loan of a single
Tranche on a given date from all the Lenders having Commitments of the
respective Tranche (or resulting from a conversion or conversions on such date)
having in the case of Eurodollar Rate Loans the same Interest Period, provided
that Base Rate Loans incurred pursuant to Section 1.11 shall be considered part
of the related Borrowing of Eurodollar Rate Loans, (ii) the borrowing of
Swingline Loans from the Swingline Lender on a given date and (iii) a
Competitive Bid Borrowing.

          “Borrowing Base” shall mean, at any time, all of the Borrowing Base
Properties at such time.

          “Borrowing Base Amount” shall mean, at any time, an amount determined
from the Borrowing Base Certificate most recently delivered pursuant to
Section 8.01 (j) to be equal to 55% of the Borrowing Base Value at such time;
provided, however, that at any time that (i) the Total Leverage of Trizec is
equal to or exceeds 60%, such percentage shall be reduced to 50%, or (ii) the
Borrowing Base contains less than ten (10) Borrowing Base Properties, such
percentage shall be reduced to 45%.

          “Borrowing Base Amount Deficiency” shall have the meaning provided in
Section 4.02(c)(i).

          “Borrowing Base Certificate” shall have the meaning provided in
Section 8.01 (j).

          “Borrowing Base Property” shall mean a Real Estate Asset that satisfies
(and continues to satisfy) each of the following conditions:

     (i) such Real Estate Asset is an office building, industrial
building, flex building or parking facility;

     (ii) such Real Estate Asset is located in the District of Columbia
or in one of the states of the United States;

     (iii) such Real Estate Asset, and the Equity Interests of the
applicable Borrowing Base Property Owner, are Unencumbered;

     (iv) such Real Estate Asset is (a) owned in fee or (b) leased
pursuant to a ground lease (x) which has a remaining term of at least 30
years (including, for this purpose, any renewal option exercisable at the
sole option of the ground lessee thereunder with no veto or approval
rights by the ground lessor thereof or any lender to such ground lessor)
(except as otherwise may be the case with respect to the existing ground
leases of a portion of the parking facilities relating to BofA Plaza) and
(y) except as otherwise

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might be the case with respect to existing ground leases of the parking
facilities relating to BofA Plaza, can be mortgaged without the consent
of the lessor thereunder and contains customary leasehold mortgagee
protection provisions (including, without limitation, the right to
receive notice of any ground lease default, the right to cure any such
default and the right to a new ground lease in favor of the leasehold
mortgagee or its designee in the event that the ground lease should
terminate on account of a default thereunder or for any other reason);

     (v) such Real Estate Asset is owned or ground leased by any of the
Borrowers or a Subsidiary of any of the Borrowers which is a Subsidiary
Guarantor and as to any such Subsidiary (x) any of the Borrowers or a
Wholly-Owned Subsidiary of any of the Borrowers owns, directly or
indirectly, not less than 90% of the Equity Interest in such Subsidiary
and (y) any of the Borrowers, or a Wholly-Owner Subsidiary of any of the
Borrowers controls all financing and sale decisions relating to such
Subsidiary with no veto rights in any minority equity owner therein or
any other person;

     (vi) such Real Estate Asset is represented by the Borrowers to be
free from any material adverse environmental issues;

     (vii) such Real Estate Asset is represented by the Borrowers to be
free from any material structural defects (other than any such defects
resulting from a casualty or taking which are being restored);

     (viii) such Real Estate Asset is not Land under Development;

     (ix) except as otherwise is the case with respect to any of the
Initial Borrowing Base Properties (but, with respect to any such Initial
Borrowing Base Property, only during the period extending from the
Effective Date to the day immediately preceding the date on which such
Initial Borrowing Base Property first satisfies the condition set forth
in this clause (ix)), such Real Estate Asset is not less than 70% leased
(based on rentable square footage); and

     (x) such Real Estate Asset has been designated by the Borrowers in
writing to the Administrative Agent as a Real Estate Asset that is a
Borrowing Base Property.

          “Borrowing Base Property Conditions” shall mean that each of clauses (i)
through (x) of the definition of “Borrowing Base Property” are satisfied and
that the Lease-Up Condition is satisfied.

          “Borrowing Base Property Coverage Ratio” shall mean, as of any date of
determination, the ratio of (x) the Borrowing Base Property NOI to (y) the
Assumed Debt Service Amount.

          “Borrowing Base Property NOI” shall mean, with respect to the Borrowing
Base Properties (including any Excluded Borrowing Base Properties), the
remainder of (a) the Net Operating Income for all of such Borrowing Base
Properties calculated for the most recently ended two fiscal quarters
multiplied by two less (b) a $0.25 per rentable square foot per annum reserve
for any such Borrowing Base Properties which are office space properties, a
$0.15 per

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rentable square foot per annum reserve for any such Borrowing Base Properties
which are industrial or flex properties and a $150.00 per parking stall per
annum reserve for any such Borrowing Base Properties which are parking
facilities; provided, however, that such Net Operating Income and reserve
amount shall be adjusted (i) to include, in the case of any Borrowing Base
Property whose Borrowing Base Property Owner is not directly or indirectly
wholly owned by any of the Borrowers (each a “Trizec JV”), only that portion of
the Net Operating Income of, and reserve amount applicable to, such Borrowing
Base Property which is equal to the product obtained by multiplying each of
such amounts by a percentage (the “Trizec Ownership Percentage”) equal to the
percentage of direct or indirect ownership of such Trizec JV by any of the
Borrowers, and (ii) on a Pro Forma Basis to account for any Borrowing Base
Properties which were added to or removed from the Borrowing Base during such
two fiscal quarter period (or, if later, after the last day of such period and
on or prior to the date of determination); and provided further, that,
notwithstanding the foregoing, the Borrowing Base Property NOI for any such
Borrowing Base Property owned or leased by a Borrowing Base Property Owner for
less than one full fiscal quarter shall equal the product (or, in the case of
any such Borrowing Base Property owned or leased by a Trizec JV, the Trizec
Ownership Percentage of the product) obtained by multiplying (x) the aggregate
Cost to acquire or lease such Borrowing Base Property by (y) the applicable
Capitalization Rate.

          “Borrowing Base Property Owner” shall mean each Credit Party (other than
Trizec) that owns or leases a Borrowing Base Property.

          “Borrowing Base Property Release Notice” shall have the meaning provided
in Section 8.13(b).

          “Borrowing Base Property Value” shall mean, with respect to each
Borrowing Base Property, the Capitalized Value of such Borrowing Base
Property; provided, however, that the Borrowing Base Property Value shall be
deemed to be zero for (a) any Excluded Borrowing Base Property and (b) the
parking facilities relating to BofA Plaza; and provided further, that the
Borrowing Base Property Value for any Borrowing Base Property acquired (or
operating control of which is acquired) after the Effective Date or developed
or substantially renovated after the Effective Date shall be the total Cost of
such Borrowing Base Property during the first four fiscal quarters after such
acquisition or completion of such development or substantial renovation.

          “Borrowing Base Value” shall mean, at any date, the sum of the Borrowing
Base Property Values for all of the Borrowing Base Properties included in the
Borrowing Base (less the portion thereof, if any, attributable (x) to any
Borrowing Base Property which at any time fails to satisfy each of the
Borrowing Base Property Conditions and (y) any Excluded Borrowing Base
Property); provided, however:

     (i) the portion of the aggregate amount of the Borrowing Base Value
attributable to Borrowing Base Properties which are owned by Subsidiary
Guarantors that are not Wholly-Owned Subsidiaries of any of the
Borrowers which would cause such aggregate amount to exceed 15% of the
total Borrowing Base Value at such time (before making any adjustments
required by this proviso) will be disregarded in determining Borrowing
Base Value;

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     (ii) the portion of the aggregate amount of the Borrowing Base
Value attributable to Borrowing Base Properties which are subject to a
ground lease which would cause such aggregate amount to exceed 25% of
the total Borrowing Base Value at such time (before making any
adjustments required by this proviso) will be disregarded in determining
Borrowing Base Value;

     (iii) the portion of the aggregate amount of the Borrowing Base
Value attributable to Borrowing Base Properties (other than BofA Plaza
and the First Citizens Plaza Properties located in Charlotte, North
Carolina (but only so long as such Borrowing Base Properties are the
only Borrowing Base Properties in the Metropolitan Statistical Area
which includes Charlotte, North Carolina)) located in a single
Metropolitan Statistical Area outside of the top 10 Metropolitan
Statistical Areas which would cause such aggregate amount to exceed 25%
of the total Borrowing Base Value at such time (before making any
adjustments required by this proviso) will be disregarded in determining
Borrowing Base Value;

     (iv) the portion of the aggregate amount of the Borrowing Base Value
attributable to any single Borrowing Base Property which would cause such
amount to exceed 15% of the total Borrowing Base Value at such time
(before making any adjustments required by this proviso) will be
disregarded in determining Borrowing Base Value (provided that the
foregoing percentage shall be (i) 30% in the case of a single Class A
office property located in the central business district of one of the
top five Metropolitan Statistical Areas and (ii) 25% in the case of a
single Class A office property in a central business district which is
not located in one of the top five Metropolitan Statistical Areas, and
provided, further, that Galleria Towers is to be included as a central
business district office property in the Dallas Metropolitan Statistical
Area and Newport Tower is to be included as a central business district
office property in the New York City Metropolitan Statistical Area); and

     (v) the portion of the aggregate amount of the Borrowing Base Value
attributable to (a) industrial Borrowing Base Properties, (b) flex
Borrowing Base Properties and (c) parking facility Borrowing Base
Properties which are not necessary to or otherwise used in connection
with the operation of any office, industrial or flex Borrowing Base
Property, which would cause such aggregate amount to exceed 10% of the
total Borrowing Base Value at such time (before making any adjustments
required by this proviso) will be disregarded in determining Borrowing
Base Value.

          “Business Day” shall mean (i) for all purposes other than as covered by
clause (ii) below, any day except Saturday, Sunday and any day which shall be
in New York City a legal holiday or a day on which banking institutions are
authorized or required by law or other government action to close and (ii)
with respect to all notices and determinations in connection with, and
payments of principal and interest on, Eurodollar Rate Loans, any day which is
a Business Day described in clause (i) above and which is also a day for
trading by and between banks in the London interbank Eurodollar market.

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     “Capital Lease” as applied to any Person shall mean any lease of any
property
(whether real, personal or mixed) by that Person as lessee which, in conformity
with GAAP, is
accounted for as a capital lease on the balance sheet of that Person.

     “Capitalization Rate” shall mean (i) for all Borrowing Base Properties and
other
Real Estate Assets which are office properties, 8.75% and (ii) for all other
Borrowing Base
Properties and other Real Estate Assets, 10%.

     “Capitalized Lease Obligations” shall mean, for any Person, all
obligations under
Capital Leases of such Person or any of its Subsidiaries in each case taken at
the amount thereof
accounted for as liabilities in accordance with GAAP.

     “Capitalized Value” with respect to any Borrowing Base Property shall mean
the
Borrowing Base Property NOI for such Borrowing Base Property divided by the
Capitalization
Rate applicable to such Borrowing Base Property.

     “Cash Equivalents” shall mean, as to any Person, (i) securities issued or
directly
and fully guaranteed or insured by the United States or any agency or
instrumentality thereof
(provided that the full faith and credit of the United States is pledged in
support thereof) having
maturities of not more than one year from the date of acquisition, (ii)
marketable direct obligations issued by any state of the United States or any political subdivision of
any such state or any
public instrumentality thereof maturing within one year from the date of
acquisition thereof and,
at time of acquisition, having one of the two highest ratings obtainable from
either S&P or
Moody’s, (iii) Dollar denominated time deposits and certificates of deposit of
any commercial
bank having, or which is the principal banking subsidiary of a bank holding
company having, in
either case at the time of acquisition thereof a long-term unsecured debt
rating of at least “A” or
the equivalent thereof from S&P or “A2” or the equivalent thereof from Moody’s
with maturities
of not more than one year from the date of acquisition by such Person, (iv)
repurchase obligations with a term of not more than seven days for underlying securities of the
types described in
clause (i) above entered into with any bank meeting the qualifications
specified in clause (iii)
above, (v) commercial paper issued by any Person rated, at the time of
acquisition, at least A-1
or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by
Moody’s and in each
case maturing not more than 270 days after the date of acquisition by such
Person and (vi)
investments in money market funds substantially all of whose assets are
comprised of securities
of the types described in clauses (i) through (v) above.

     “CERCLA” shall mean the Comprehensive Environmental
Response,
Compensation, and Liability Act of 1980, as the same may be amended from time
to time, 42
U.S.C. §9601 et seq.

     “Change in Law” shall have the meaning provided in Section 10.07.

     “Change of Control” shall mean: (i) any Person or “group” (within the
meaning of
Sections 13(d) and 14(d) under the Exchange Act, as in effect on the Effective
Date), other than
one or more Permitted Holders, (A) shall have beneficial ownership of 25% or
more on a fully
diluted basis of the voting and/or economic interest in the capital stock of
Trizec (provided that
the beneficial ownership by any Person or “group which is not a Permitted
Holder of 25% or

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more on a fully diluted basis of the voting and/or economic interest in the
capital stock of Trizec
on or prior to the date on which one or more Permitted Holders ceases to have
(or fails to
exercise) the power to elect a majority of the directors of Trizec shall not
constitute a Change of
Control under this clause (i)(A) if such Person or ‘group’ (x) does not acquire
beneficial ownership of any additional voting and/or economic interest in the capital stock of
Trizec and (y)
reduces such beneficial ownership to less than 25% (30% in the case of
Southeastern Asset
Management and 45% in the case of the institutional lenders described in the
next proviso) on a
fully diluted basis, in each case within 60 days following such date; and
provided further, that
beneficial ownership of up to 45% on a fully diluted basis of the voting and/or
economic interest
in the capital stock of Trizec by one or more institutional lenders through the
foreclosure of a
Lien securing bona fide amounts owed to such institutional lenders by Trizec
Canada or any of
its Subsidiaries (other than Trizec or any of its Subsidiaries) shall not
constitute a Change of
Control under this clause (i)(A), although any subsequent transfer, sale or
other disposition by
any such institutional lender or lenders of all or any portion of the shares of
capital stock of
Trizec shall be subject to the provisions of this clause (i)(A) determined
without regard to this
proviso; and provided finally that beneficial ownership of up to 30% on a fully
diluted basis of
the voting and/or economic interest in the capital stock of Trizec by
Southeastern Asset
Management shall not constitute a Change of Control under this clause (i)(A),
although any
subsequent transfer, sale or other disposition by Southeastern Asset Management
of all or any
portion of the shares of capital stock of Trizec shall be subject to the
provisions of this clause
(i)(A) determined without regard to this proviso) or (B) shall have obtained
the power (whether
or not exercised) to elect a majority of the directors of Trizec or (ii) the
Board of Directors of
Trizec shall cease to consist of a majority of Continuing Trizec Directors or
(iii) prior to the
formation of the Additional Borrower, Trizec shall at any time cease to own
beneficially and of
record, directly, free and clear of all Liens, voting agreements, restrictions
or trusts of any kind,
100% of the outstanding Equity Interests of Holdings and any Subsidiary
Guarantor described in
Section 8.13(f) on a fully diluted basis or (iv) after the formation of the
Additional Borrower,
(a) Trizec or a Wholly-Owned Subsidiary of Trizec shall cease to be the sole
general partner or
managing member, as applicable, of the Additional Borrower, (b) Trizec and/or
such Wholly
Owned Subsidiary shall cease to own beneficially and of record, directly, free
and clear of all
Liens, or voting agreements, restrictions or trusts of any kind, 66 2/3% of the
outstanding Equity
Interests of the Additional Borrower on a fully diluted basis or (c) the
Additional Borrower shall
cease to own beneficially and of record, directly, free and clear of all Liens,
voting agreements,
restrictions or trusts of any kind, 100% of the outstanding Equity Interests of
each of Holdings (if
Holdings is not the Additional Borrower), and any Subsidiary Guarantor
described in Section
8.13(f) on a fully diluted basis.

     “Claims” shall have the meaning provided in the definition of
Environmental
Claim.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time
to
time and the regulations promulgated and the rulings issued thereunder.
Section references to
the Code are to the Code, as in effect on the Effective Date and to any
subsequent provisions of
the Code, amendatory thereof, supplemental thereto or substituted therefor.

     “Commitment” shall mean any of the commitments of any Lender (i.e., its
Term
Loan Commitment and/or its Revolving Loan Commitment).

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     “Commitment Commission” shall mean Term Loan Commitment Commission
and/or Revolving Loan Commitment Commission, as the context requires.

     “Company” shall mean any corporation, limited company,
limited liability
company, partnership or other business entity (or the adjectival form thereof,
where appropriate).

     “Competitive Bid Borrowing” shall mean each Borrowing of Competitive Bid
Loans.

     “Competitive Bid Loan” shall have the meaning provided in Section 1.01(e).

     “Competitive Bid Loan Maturity Date” shall have the meaning provided in
Section 1.04(a).

     “Competitive Bid Note” shall have the meaning provided in Section 1.06(a).

     “Compliance Certificate” shall mean a certificate duly executed in the
form of
Exhibit P.

     “Consolidated EBITDA” of any Person for any period shall mean, without
duplication, the consolidated net income or loss of such Person (before deduction
for minority
interests in Consolidated Entities and excluding, solely for purposes of
Sections 9.12 and 9.13,
the adjustment for so-called “straight-line rent accounting”) for such period;
plus (A) the following items to the extent deducted in computing such consolidated net income of
such Person for
such period: (i) Consolidated Interest Expense of such Person for such period,
(ii) Consolidated
Income Tax Expense of such Person for such period and (iii) consolidated real
estate depreciation, amortization and other extraordinary and non-cash items of such Person
for such period
(except, in the case of such other non-cash items, to the extent that a cash
payment will be
required to be made in respect thereof in a future period); minus (B) the
following items to the
extent included in computing such consolidated net income of such Person for
such period:
(i) all consolidated gains (or plus all losses) attributable to the sale or
other disposition of assets
or debt restructurings of such Person in such period, (ii) income (loss) from
Unconsolidated
Entities and (iii) for purposes of calculating Consolidated Total Asset Value
of such Person only,
all consolidated interest income of such Person received in connection with any
Mortgages; plus
(or minus, as applicable), (C) such Persons’ Unconsolidated Allocation
Percentage of the items
described above in this definition of any Unconsolidated Entity for such
period; provided,
however, that, notwithstanding the foregoing and solely for the purposes of
Sections 9.12 and
9.13, the Consolidated EBITDA for any Real Estate Asset owned or leased by such
Person or
any Consolidated Entity or Unconsolidated Entity of such Person for less than
one completed
fiscal quarter shall equal the product (or, in the case of any such Real Estate
Asset owned or
leased by an Unconsolidated Entity of such Person, such Person’s Unconsolidated
Allocation
Percentage of the product) obtained by multiplying (I) the product of (a) the
aggregate Cost of
such Person or its Consolidated Entity or Unconsolidated Entity, as applicable,
to acquire such
Real Estate Asset and (b) the Capitalization Rate applicable to such Real
Estate Asset, by (II) a
fraction whose numerator is the actual number of days in such fiscal quarter
during which such
Person or its Consolidated Entity or Unconsolidated Entity, as applicable,
owned or leased such

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Real Estate Asset and the denominator of which is the actual number of days in
the fiscal year in
which such fiscal quarter occurs.

     “Consolidated Entity” shall mean, for any Person at any date, any
Subsidiary or
other Person which is consolidated with such first Person in accordance with
GAAP.

     “Consolidated Fixed Charge Coverage Ratio” of any Person for any period
shall
mean the ratio of (x) Consolidated EBITDA of such Person for such period to (i)
to Consolidated
Fixed Charges of such Person for such period.

     “Consolidated Fixed Charges” of any Person for any period shall mean the
sum
of, without duplication, (i) Consolidated Interest Expense of such Person for
such period, (ii) an
amount equal to $0.25 multiplied by the rentable square footage of all Real
Estate Assets of such
Person and its Consolidated Entities, (iii) the aggregate amount of all
Dividends paid by such
Person and its Consolidated Entities during such period on any Preferred Stock,
(iv) the
scheduled principal amount of all amortization payments on all Indebtedness
(including, without
limitation, the principal component of all Capitalized Lease Obligations) of
such Person and its
Consolidated Entities for such period (as determined on the first day of such
period) and (v) such
Person’s Unconsolidated Allocation Percentage of any of the foregoing items
that are attributable
to any Unconsolidated Entity for such period.

     “Consolidated Income Tax Expense” of any Person for any period shall mean
the
sum of, without duplication, (i) the consolidated provision for income taxes of
such Person taken
into account in determining the consolidated net income of such Person for such
period and (ii)
such Person’s Unconsolidated Allocation Percentage of the consolidated
provision for income
taxes of any Unconsolidated Entity for such period.

     “Consolidated Interest Coverage Ratio” of any Person for any period shall
mean
the ratio of (x) Consolidated EBITDA of such Person for such period to (y)
Consolidated Interest
Expense of such Person for such period.

     “Consolidated Interest Expense” of any Person for any period shall mean
the sum
of, without duplication, (i) the total consolidated interest expense of such
Person for such period
(calculated without regard to any limitations on the payment thereof) plus,
without duplication,
that portion of consolidated Capitalized Lease Obligations of such Person
representing the
interest factor for such period, but excluding that portion of the consolidated
interest expense of
such Person for such period that has accrued and is capitalized into principal
at the end of such
period (and is not paid in cash) in accordance with the terms of the agreement
governing the
respective Indebtedness as such terms were in effect at the time that such
Indebtedness was
originally incurred, and (ii) such Person’s Unconsolidated Allocation
Percentage of any of the
foregoing items that are attributable to any Unconsolidated Entity for such
period.

     “Consolidated Net Worth” of any Person at any time shall mean the total
assets
minus the total liabilities of such Person at such time as would be required to
be reflected at such
time on the consolidated balance sheet of such Person.

     “Consolidated Total Asset Value” of any Person at any time shall mean the
sum
of, without duplication, the following amounts of such Person and its
Consolidated Entities at

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such time: (i) all Unrestricted Cash and Cash Equivalents, (ii) the Fair Market
Value of all Real
Estate Assets (other than (x) Land Held for Development, (y) Land Under
Development and (z)
any Real Estate Asset (i) which is acquired (or operating control of which is
acquired) after the
Effective Date or (ii) which is developed or substantially renovated after the
Effective Date
(which, in the case of any Real Estate Asset described in this clause (z), will
be included at Cost
during the first four fiscal quarters after such acquisition or completion of
such development or
substantial renovation)), (iii) all Land held for Development, Land Under
Development and other
real estate investments valued at the book value thereof before accumulated
depreciation, (iv) all
other Investments (including real estate related technology companies and
taxable REIT
Subsidiaries), valued at book value before accumulated depreciation and (v) to
the extent not
otherwise included in any of preceding clauses (i) through (iv), such Person’s
Unconsolidated
Allocation Percentage of any of the items in preceding clauses (i), (iii) and
(iv) that are
attributable to an Unconsolidated Entity at such time; provided, however,
clause (ii) of this
definition shall be calculated on a Pro Forma Basis.

     “Consolidated Total Indebtedness” of any Person at any time shall mean the
sum
of, without duplication, of the following amounts of such Person and its
Consolidated Entities at
such time: (i) all Indebtedness (other than Indebtedness of the type described
in clause (D) of the
definition thereof but including all other items of Indebtedness described in
such definition), (ii)
all amounts of guaranties, indemnities for borrowed money, stop-loss agreements
and the like
provided by such Person or any of its Consolidated Entities, in each case in
connection with and
guarantying repayment of amounts outstanding under any other Indebtedness of
the type
described in the other clauses of this definition, (iii) all amounts of bonds
posted by such Person
or any of its Consolidated Entities guaranteeing performance or payment
obligations, and (iv)
such Person’s Unconsolidated Allocation Percentage of any of the foregoing
items that are
attributable to any Unconsolidated Entity at such time; provided, however, that
for purposes of
the definition of Unsecured Consolidated Total Indebtedness, Consolidated Total
Indebtedness
of a Person shall mean all Indebtedness of such Person other than Indebtedness
of the type
described in clause (C) of the definition of Indebtedness and, as to
Indebtedness of the type
described in clause (D) of the definition of Indebtedness, only the aggregate
net exposure under
such Indebtedness which is Recourse to any Credit Party shall be included.

     “Contingent Obligation” shall mean, as to any Person, any liability of
such Person
as a result of such Person being a general partner of any other Person, unless
the underlying
Indebtedness is expressly made non-recourse as to such general partner, and any
obligation of
such Person guaranteeing or intended to guarantee any Indebtedness (“primary
obligations”) of
any other Person (the “primary obligor”) in any manner, whether directly or
indirectly, including,
without limitation, any obligation of such Person, whether or not contingent,
(i) to purchase any
such primary obligation or any property constituting direct or indirect
security therefor, (ii) to
advance or supply funds for the purchase or payment of any such primary
obligation, (iii) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any
such primary obligation of the ability of the primary obligor to make payment
of such primary
obligation or (iv) otherwise to assure or hold harmless the holder of such
primary obligation
against loss in respect thereof, including, without limitation, completion
guaranties, debt service
guaranties, environmental indemnities and non-recourse carveout guaranties;
except in each case
to the extent a claim is made against such Person as a result thereof;
provided, however, that the
term Contingent Obligation shall not include endorsements of instruments for
deposit or

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collection in the ordinary course of business. The amount of any Contingent
Obligation shall be
deemed to be an amount equal to the lesser of (x) the stated or determinable
amount of the
primary obligation in respect of which such Contingent Obligation is made or,
if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such
Person is required to perform thereunder) as shown (or would be required to be
shown) on the
balance sheet of such Person or disclosed (or would be required to be
disclosed) in the footnotes
of a balance sheet of such Person and (y) the stated amount of such Contingent
Obligation.

     “Continuing Trizec Canada Directors” shall mean the directors of Trizec
Canada
on the Effective Date and each other director of Trizec Canada if such
director’s nomination for
election to the Board of Directors of Trizec Canada is recommended by a
majority of the then
Continuing Trizec Canada Directors or by a majority of the nominating committee
appointed by
the then Continuing Trizec Canada Directors for the purpose of nominating
directors for election
to the Board of Directors of Trizec Canada.

     “Continuing Trizec Directors” shall mean the directors of Trizec on the
Effective
Date and each other director of Trizec if such director’s nomination for
election to the Board of
Directors of Trizec is recommended by a majority of the then Continuing Trizec
Directors or by
a majority of any nominating committee appointed by the then Continuing Trizec
Directors for
the purpose of nominating directors for election to the Board of Directors of
Trizec.

     “Cost” shall mean (a) with respect to the acquisition of any Property,
without
duplication, (i) the aggregate purchase price paid as cash consideration for
such purchase
(without adjustment for prorations), plus the principal amount of any note
delivered or other
deferred payment to be made in connection with such purchase and the value of
any non-cash
consideration delivered in connection with such purchase (including, without
limitation, shares
or preferred shares of beneficial interest in Trizec, partnership or membership
units in the
Additional Borrower or Equity Interests in any Subsidiary of Trizec) plus (ii)
reasonable and
customary costs of sale and non-recurring taxes paid or payable in connection
with such
purchase, and (b) with respect to any Real Estate Asset which is acquired (or
operating control in
which is acquired), developed or substantially renovated after
the Effective Date, the
undepreciated book value of such Real Estate Asset as so acquired, developed or
renovated.

     “Credit Documents” shall mean this Agreement, the Notes executed and
delivered
pursuant to the terms of this Agreement, the Subsidiaries
Guaranty, the Subordination
Agreement, and, after the execution and delivery thereof pursuant to the terms
of this
Agreement, the Joinder Agreement.

     “Credit Event” shall mean the making of any Loan or the issuance of any
Letter
of Credit.

     “Credit Party” shall mean each of the Borrowers and each Subsidiary
Guarantor.

     “Credit Rating” shall mean, for any Rating Agency, a publicly announced
rating
level (it being understood that a rating level shall include numerical
modifiers and (+) and (–)
modifiers) assigned by such Rating Agency to either the Loans and/or Trizec’s
long term senior
unsecured debt.

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     “DBTCA” shall mean Deutsche Bank Trust Company Americas.

     “Default” shall mean any event, act or condition which with notice or
lapse of
time, or both, would constitute an Event of Default; provided, however, that
any event, act or
condition which causes the 60 day period referred to in clause (i)(A) of the
definition of Change
of Control or the 60 day period referred to in clause (i)(y)(A) of the
definition of Trizec Canada
Control Requirements to commence shall not constitute a Default.

     “Defaulting Lender” shall mean any Lender with respect to which a Lender
Default is in effect.

     “Dividend” with respect to any Person shall mean that such Person has paid
a
dividend or distribution or returned any equity capital to its stockholders,
partners or members or
made any other distribution, payment or delivery of property (other than shares
of common or
preferred equity of such Person) or cash to its stockholders, partners or
members as such, or
redeemed, retired, purchased or otherwise acquired, directly or indirectly, for
any consideration
any shares of any class of its Equity Interests outstanding on or after the
Effective Date, or shall
have permitted any of its Subsidiaries to purchase or otherwise acquire for a
consideration any
shares of any class of any Equity Interests of such Person outstanding on or
after the Effective
Date.

     “Dollars” and the sign “$” shall each mean freely transferable lawful
money of
the United States.

     “Drawing” shall have the meaning provided in Section 2.05(b).

     “Effective Date” shall have the meaning provided in Section 13.10.

     “Eligible Transferee” shall mean and include a commercial bank, an
insurance
company, a finance company, a financial institution, any fund that invests in
bank loans or any
other “accredited investor” (as defined in Regulation D of the Securities Act).

     “End Date” shall mean, for any Pricing Period, the last day of such
Pricing
Period.

     “Environmental Approvals” shall mean any governmental permit,
license,
approval, ruling, variance, exemption or other authorization
required under applicable
Environmental Laws.

     “Environmental Claims” shall mean any and all administrative, regulatory
or
judicial actions, suits, demands, demand letters, directives, claims, liens,
notices of noncompliance or violation, investigations or proceedings (in each case in writing)
arising under any
Environmental Law or any Environmental Approval (hereafter, “Claims”),
including, without
limitation, (a) any and all Claims by governmental or regulatory authorities
for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to
any applicable
Environmental Law, and (b) any and all Claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or injunctive relief in
connection with alleged

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injury or threat of injury to human health, safety or the environment due to
the presence of
Hazardous Materials.

     “Environmental Law” shall mean any Federal, state, foreign or local
statute, law,
rule, regulation, ordinance, code and rule of common law now or hereafter in
effect and in each
case as amended, and any judicial or legally binding administrative
interpretation thereof, including any judicial or administrative order, consent decree or judgment, relating
to the environment,
employee health and safety or Hazardous Materials, including, without
limitation, CERCLA;
RCRA; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the
Toxic Substances
Control Act, 15 U.S.C. § 2601 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et
seq.; the Safe
Drinking Water Act, 42 U.S.C. § 3803 et seq.; the Oil Pollution Act of 1990,
33 U.S.C. § 2701
et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42
U.S.C.
§ 11001 et seq.; the Hazardous Material Transportation Act, 49 U.S.C. § 1801
et seq.; the
Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; and any state and
local or foreign
counterparts or equivalents, in each case as amended from time to time.

     “Equity Interests” of any Person shall mean any and all shares, interests,
rights to
purchase, warrants, options, participation or other equivalents of or interest
in (however designated) equity of such Person, including, without limitation, any Preferred
Stock, any limited or
general partnership interest and any limited liability company membership
interests.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder.
Section references to ERISA are to ERISA, as in effect on the Effective Date
and any subsequent
provisions of ERISA, amendatory thereof, supplemental thereto or substituted
therefor.

     “ERISA Group” shall mean each of the Borrowers and each person (as defined
in
Section 3(9) of ERISA) which together with any of the Borrowers or a Subsidiary
of any of the
Borrowers would be deemed to be a “single employer” within the meaning of
Section 414 of the
Code.

     “Eurodollar Rate” shall mean, with respect to any Interest Period relating
to a
Borrowing of Eurodollar Rate Loans, (a) the rate of interest per annum that
appears on page
3750 of the Dow Jones Market Screen (or such other page as may replace Page
3750 on the
Associated Press-Dow Jones Telerate Service or such other service as may be
nominated by the
British Bankers’ Association as the information vendor for the purpose of
displaying British
Bankers’ Association interest settlement rates for U.S. dollar deposits) for
Dollar deposits of
amounts in immediately available funds comparable to the principal amount of
the Eurodollar
Rate Loans included in such Borrowing with the same Interest Period and with
maturities
comparable to the Interest Period applicable to such Eurodollar Rate Loans as
of 11:00 A.M.
(London time) on the date which is two Business Days prior to the commencement
of such
Interest Period, in each case with the rate determined pursuant to preceding
clause (a) to be
divided (and rounded upward, if necessary, to the nearest 1/16 of 1%) by (b) a
percentage equal
to 100% minus the then stated maximum rate of all reserve requirements
(including, without
limitation, any marginal, emergency, supplemental, special or other reserves
required by applicable law) applicable to any member bank of the Federal Reserve System in
respect of
Eurocurrency funding or liabilities as defined in Regulation D (or any
successor category of

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liabilities under Regulation D); provided that, to the extent that an interest
rate is not
ascertainable pursuant to the foregoing provisions of this definition, the rate
to be used for
purposes of this definition shall be (x) the rate of
interest per annum quoted by the
Administrative Agent to first-class banks in the London interbank Eurodollar
market for Dollar
deposits of amounts in immediately available funds comparable to the principal
amount of the
Eurodollar Rate Loan included in such Borrowing with the same Interest Period
and with
maturities comparable to the Interest Period applicable to such Eurodollar Rate
Loans as of 11:00
A.M. (London time) on the date which is two Business Days prior to the
commencement of such
Interest Period, in each case with the rate determined pursuant to preceding
clause (x) to be
divided (and rounded upward, if necessary, to the nearest 1/16 of 1%) by (y) a
percentage equal
to 100% minus the then stated maximum rate of all reserve requirements
(including, without
limitation, any marginal, emergency, supplemental, special or other reserves
required by applicable law) applicable to any member bank of the Federal Reserve System in
respect of
Eurocurrency funding or liabilities as defined in Regulation D (or any
successor category of
liabilities under Regulation D).

     “Eurodollar Rate Loan” shall mean each Term Loan and Revolving Loan
designated as such by the Borrowers at the time of the incurrence thereof or
conversion thereto.

     “Event of Default” shall have the meaning provided in Section 10.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

     “Excluded Borrowing Base Property” shall mean any Borrowing Base Property
which the Borrowers, pursuant to Section 8.13(d), have designated to be
excluded from the
calculation of Borrowing Base Value, but only so long as (i) upon the removal
of such
Borrowing Base Property from the calculation of Borrowing Base Value and any
prepayment of
Loans required by Section 4.02(c), any Borrowing Base Amount Deficiency has
been cured and
(ii) such Borrowing Base Property otherwise continues to satisfy each of the
other Borrowing
Base Property Conditions.

     “Excluded Borrowing Base Property Designation” shall have
the meaning
provided in Section 8.13(d).

     “Existing Credit Facility” shall mean the existing credit facility
pursuant to that
certain Amended and Restated Credit Agreement, dated as of December 18, 2002,
among Trizec,
DBTCA, as administrative agent, and the lenders from time to time party
thereto, as heretofore
amended, modified and/or supplemented.

     “Existing Letter of Credit” shall have the meaning provided in Section
2.01(c).

     “Extension Fee” shall have the meaning provided in Section 3.01(g).

     “Extension Requirements” shall mean, with respect to the delivery of the
notice
pursuant to Section 1.17 or the extension of the original Maturity Date
pursuant to Section 1.17,
the satisfaction of each of the following conditions: (i) no Default or Event
of Default shall have
occurred and be continuing at such time, both before and immediately after
giving effect to such

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delivery or such extension, as the case may be, (ii) all representations and
warranties contained
herein and in the other Credit Documents shall be true and correct in all
material respects with
the same effect as though such representations and warranties had been made on
and as of the
date of such request or extension (both before and after giving effect
thereto), unless stated to
relate to a specific earlier date, in which case such representations and
warranties shall be true
and correct in all material respects as of such earlier date, (iii) the
Borrowers shall have paid to
each Lender the Extension Fee owed to such Lender pursuant to, and on or before
the time
provided in, Section 3.01(g) and (iv) on the date of extension of the Maturity
Date, a Senior
Financial Officer of each of the Borrowers shall have delivered to the
Administrative Agent an
officer’s certificate certifying as to compliance with preceding clauses (i),
(ii) and (iii).

     “Facility Fee” shall mean the Term Loan Facility Fee and/or the Revolving
Loan
Facility Fee, as the context requires.

     “Facing Fee” shall have the meaning provided in Section 3.01(d).

     “Fair Market Value” of any Person at any time shall mean the sum of (I) an
amount equal to (i)(x) Consolidated EBITDA for the most recently ended two
fiscal quarters of
such Person (including cash severance payments made to employees of such Person
during such
period to the extent deducted in computing Consolidated EBITDA, but excluding
the portion of
such Consolidated EBITDA for such two fiscal quarter period attributable to (A)
any Real Estate
Assets sold or acquired after the first day of the most recently ended four
fiscal quarter period
and on or prior to the date of determination and (B) any Lease termination
payments) multiplied
by (y) two minus (ii) $0.25 multiplied by the aggregate rentable square footage
of all Real Estate
Assets of such Person and its Consolidated Entities at such time with the
remainder of (i) minus
(ii) being divided by (iii) the Capitalization Rates applicable to the Real
Estate Assets in question, plus (II) such Person’s or its Consolidated Entity’s aggregate Cost to
acquire any Real
Estate Assets which were acquired by such Person or such Consolidated Entity
after the first day
of the most recently ended four fiscal quarter period and on or prior to the
date of determination,
plus (III) such Person’s Unconsolidated Allocation Percentage of the aggregate
Cost to acquire
any Real Estate Assets which were acquired by any Unconsolidated Entity of such
Person after
the first day of the most recently ended four fiscal quarter period and on or
prior to the date of
determination.

     “Federal Funds Rate” shall mean, for any day, a rate per annum equal to
the
weighted average of the rates on overnight Federal Funds transactions with
members of the
Federal Reserve System arranged by Federal Funds brokers, as published for such
day (or, if
such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the
average of the quotations for such day on such transactions received by the
Administrative Agent
from three Federal Funds brokers of recognized standing selected by the
Administrative Agent.

     “Fees” shall mean all amounts payable pursuant to or referred to in
Section 3.01.

     “Fitch” shall mean Fitch, Inc. or any successor thereto.

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     “Fitch Credit Rating” shall mean the publicly announced Credit Rating
assigned
by Fitch as in effect from time to time.

     “Foreign Pension Plan” shall mean any plan, fund (including without
limitation,
any superannuation fund) or other similar program established or maintained
outside the United
State of America by any of the Borrowers or any of their respective
Subsidiaries primarily for the
benefit of employees of any of the Borrowers or any their respective
Subsidiaries residing
outside the United States of America, which plan, fund or similar program
provides, or results in,
retirement income, the deferral of income in contemplation of retirement or
payments to be made
upon termination of employment, and which plan is not subject to ERISA or the
Code.

     “Funds From Operations” shall have the meaning provided in accordance with
resolutions adopted by the Board of Governors of the National Association of
Real Estate
Investment Trust as in effect on the Effective Date.

     “GAAP” shall mean, with respect to Trizec, generally accepted accounting
principles in effect from time to time in the United States as applied by
Trizec in the preparation
of its consolidated financial statements.

     “Governmental Authority” shall mean any Federal, state or local government
or
any other political subdivision thereof or agency exercising executive,
legislative, judicial,
regulatory or administrative functions.

     “Granting Lender” shall have the meaning provided in Section 13.04(b).

     “Guaranteed Obligations” shall have the meaning provided in the Subsidiary
Guaranty.

     “Hazardous Materials” shall mean (a) any petroleum or petroleum products,
radioactive materials, asbestos in any form that is friable, urea formaldehyde
foam insulation,
polychlorinated biphenyls, and radon gas; (b) any chemicals, materials or
substances defined as
or included in the definition of “hazardous substances,”
“hazardous waste,” “hazardous
materials,” “extremely hazardous substances,” “restricted hazardous waste,”
“toxic substances,”
“toxic pollutants,” “contaminants,” or “pollutants,” or words of similar
import, which are
regulated under any applicable Environmental Law; and (c) any other chemical,
material or
substance, the Release of which is prohibited, limited or regulated by any
Environmental Law.

     “Highest Lawful Rate” shall mean, at any given time
during which any
Obligations shall be outstanding hereunder, the maximum nonusurious interest
rate, if any, that
at any time or from time to time may be contracted for, taken, reserved,
charged or received on
the Obligations owing under this Agreement and any other Credit Document, under
the laws of
the State of New York (or the law of any other jurisdiction whose laws may be
mandatorily
applicable notwithstanding other provisions of this Agreement and the other
Credit Documents),
or under applicable federal laws which may presently or hereafter be in effect
and which allow a
higher maximum nonusurious interest rate than under New York (or such other
jurisdiction’s)
law, in any case after taking into account, to the extent permitted by
applicable law, any and all
relevant payments or charges under this Agreement and any other Credit
Documents executed in
connection herewith, and any available exemptions, exceptions and exclusions.

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     “Holdings” shall have the meaning provided in the first paragraph of this
Agreement.

     “Indebtedness” of any Person shall mean, without duplication, (A) (i) all
indebtedness of such Person for borrowed money or for the deferred purchase price of
property or
services (other than trade payable or accrued liabilities arising in the
ordinary course of business
which are not overdue or which are being contested in good faith) and (ii) all
indebtedness of
such Person evidenced by a note, bond, debenture or similar instrument, (B) the
face amount of
all letters of credit, bankers acceptances or similar instruments issued for
the account of such
Person and, without duplication, all unreimbursed amounts drawn thereunder, (C)
all Contingent
Obligations of such Person, (D) all payment obligations of such Person under
any Interest Rate
Protection Agreements or Other Hedging Agreements, (E) all Indebtedness of the
types
described in clause (A), (B), (C), (D), (F) or (G) of this definition secured
by any Lien on any
Property owned by such Person, whether or not such Indebtedness has been
assumed by such
Person (provided that, if the Person has not assumed or otherwise become liable
in respect of
such Indebtedness, such Indebtedness shall be deemed to be in an amount equal
to the fair
market value of the Property to which such Lien relates as determined in good
faith by such
Person), (F) the aggregate amount required to be capitalized under Capital
Leases under which
such Person is the lessee and (G) all obligations of such Person to pay a
specified purchase price
for goods or services, whether or not delivered or accepted i.e., take-or-pay
and similar obligations. Notwithstanding the foregoing, Indebtedness shall not include any
Dividends declared but
not yet paid.

     “Initial Borrowing Base Properties” shall mean each Real Estate Asset
described
in Schedule III.

     “Insurance Requirements” means all terms of any insurance policy required
hereunder, all requirements of the issuer of any such policy, and all orders,
rules, regulations and
other requirements of the National Board of Fire Underwriters (or any other
body exercising
similar functions) applicable to or affecting any Borrowing Base Property or
any part thereof or
any use of any Borrowing Base Property or any portion thereof.

     “Intercompany Indebtedness” shall mean any Indebtedness for borrowed money
owed by any of the Borrowers or any of their respective Subsidiaries to any of
the Borrowers or
any of their respective Subsidiaries.

     “Interest Determination Date” shall mean, with respect to any Eurodollar
Rate
Loan, the second Business Day prior to the commencement of any Interest Period
relating to
such Eurodollar Rate Loan.

     “Interest Period” shall have the meaning provided in Section 1.10.

     “Interest Rate Hedges” shall mean interest rate exchange, collar, cap,
swap,
adjustable strike cap, adjustable strike corridor or similar agreements issued
by providers, and
having terms, conditions and tenors, which are consistent with the past
practice of Trizec and
entered into by any of the Borrowers and/or their respective Subsidiaries to
provide protection to,
or minimize the impact upon, any of the Borrowers and/or their respective
Subsidiaries of

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increasing floating rates of interest applicable to Indebtedness under clause
(A) of the definition
of Indebtedness.

     “Interest Rate Protection Agreement” shall mean any interest rate swap
agreement, interest rate cap agreement, interest collar agreement, interest rate
hedging agreement or
other similar agreement or arrangement.

     “Investment Company Act” shall mean the Investment Company Act of 1940, as
amended.

     “Investment Grade Rating Condition” shall mean, at any time but only for
so long
as, at least two of the three Rating Agencies shall have publicly announced a
Credit Rating for
the Loans and/or the long term unsecured debt of Trizec of at least BBB-/Baa3
(but otherwise
subject to the first proviso of the definition of Applicable Facility Fee
Percentage and the first
proviso of clause (B) of the definition of Applicable Margin).

     “Investments” shall mean all expenditures made and all liabilities
incurred
(contingent or otherwise, but without duplication): (i) for the acquisition of
stock, partnership
interests or other Equity Interests or for the acquisition of Indebtedness of,
or for loans,
advances, capital contributions or transfers of property to, any Person; (ii)
in connection with
Land under Development; (iii) in connection with Land held for Development; and
(iv) for the
acquisition of any other obligations of any Person.

     “Issuing Lender” shall mean DBTCA (which, for purposes of this definition,
also
shall include any lending affiliate of DBTCA, including Deutsche Bank AG, New
York Branch,
which has agreed to issue Letters of Credit under this Agreement) and any other
Lender which at
the request of the Borrowers and with the consent of the Administrative Agent
agrees, in such
Lender’s sole discretion, to become an Issuing Lender for the purpose of
issuing Letters of Credit
pursuant to Section 2.

     “Joinder Agreement” shall have the meaning provided in Section 1.06(g).

     “Joint Venture” shall mean, as to any Person, (x) any Subsidiary of such
Person in
which such Person owns less than 90% of the Equity Interests and (y) any
Unconsolidated
Entity.

     “Judgment Currency” shall have the meaning provided in Section 13.20.

     “Judgment Currency Conversion Date” shall mean the meaning provided in
Section 13.20.

     “Land held for Development” shall mean any unimproved Real Estate Asset
which is not Land under Development.

     “Land under Development” shall mean any Real Estate Asset for which Trizec
or
any of its Consolidated Entities or Unconsolidated Entities is actively
pursuing construction of
one or more buildings, structures or other improvements and for which
construction is proceeding to completion without undue delay from permit denial, construction delays
or otherwise, all

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pursuant to such Person’s ordinary course of business, provided that any such
Real Estate Asset
(or, if applicable, any building, structure or other improvement comprising a
portion of any such
Real Estate Asset) will no longer be considered Land under Development when (i)
a certificate
of occupancy has been issued for such Real Estate Asset (or building, structure
or other improvement thereon) or such Real Estate Asset (or building, structure or other
improvement thereon)
may otherwise be lawfully occupied for its intended use and (ii) (A) in the
case of an office,
industrial or flex building, such Real Estate Asset is more than 85% leased in
the aggregate
(based on square footage) and such Person is receiving rental payments from
tenants leasing
more than 85% of such Real Estate Asset (based on square footage), (B) in the
case of a retail
building, such Real Estate Asset is more than 85% leased in the aggregate
(based on square
footage) and has had a certificate of occupancy for at least 18 months, (C) in
the case of a hotel,
such Real Estate Asset has had a certificate of occupancy for at least 18
months and is receiving
guests in the ordinary course of business, and (D) in the case of each unit of
a residential
condominium, such residential condominium unit is sold. Notwithstanding the
foregoing, tenant
improvements (where available) to previously constructed and/or leased Real
Estate Assets shall
not be considered Land under Development. Notwithstanding the foregoing, a
Real Estate Asset
whose improvements are being restored following a Casualty or Taking shall not
constitute Land
Under Development.

     “L/C Supportable Obligations” shall mean (i) obligations of any of the
Borrowers
or any of their respective Subsidiaries with respect to workers compensation,
surety bonds and
other similar statutory obligations and (ii) such other obligations of any of
the Borrowers or any
of their respective Subsidiaries as are permitted to exist pursuant to the
terms of this Agreement.

     “Lease-Up Condition” shall have the meaning provided in Section 8.13(d).

     “Leaseholds” of any Person shall mean all the right, title and interest of
such
Person as lessee or licensee in, to and under leases or licenses of land,
improvements and/or
fixtures.

     “Lender” shall mean each financial institution listed on Schedule I, as
well as any
Person which becomes a “Lender” hereunder pursuant to Sections 1.15, 1.16 or
13.04(b).

     “Lender Default” shall mean (i) the refusal (which has not been retracted)
or the
failure of a Lender to make available its portion of any Borrowing required to
be made available
by it hereunder (including any Mandatory Borrowing) or to fund its portion of
any unreimbursed
payment under Section 2.04(c) or (ii) a Lender having notified in writing the
Borrowers and/or
the Administrative Agent that such Lender does not intend to comply with its
obligations under
Section 1.01(a), 1.01(b), 1.01(d) or 2.04, in the case of either clause (i) or
(ii) as a result of any
takeover or control (including, without limitation, as a result of the
occurrence of any event of
the type described in Section 10.05 with respect to such Lender) of such Lender
by any
regulatory authority or agency.

     “Letter of Credit” shall have the meaning provided in Section 2.01(a).

     “Letter of Credit Fee” shall have the meaning provided in Section 3.01(c).

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     “Letter of Credit Outstandings” shall mean, at any time, the sum of (i)
the
aggregate Stated Amount of all outstanding Letters of Credit at such time and
(ii) the amount of
all Unpaid Drawings at such time.

     “Letter of Credit Request” shall have the meaning provided in Section
2.03(a).

     “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), security interest,
preference, priority or
other security agreement of any kind or nature whatsoever (including, without
limitation, any
conditional sale or other title retention agreement, any financing or similar
statement or notice
filed under the UCC or any other similar recording or notice statute, and any
lease having
substantially the same effect as any of the foregoing).

     “Loan” shall mean each Term Loan, Revolving Loan, Competitive Bid Loan and
Swingline Loan.

     “Majority Lenders” of any Tranche shall mean those Non-Defaulting Lenders
which would constitute the Required Lenders under, and as defined in, this
Agreement if all
outstanding Obligations of the other Tranches under this Agreement were repaid
in full and all
Commitments with respect thereto were terminated.

     “Mandatory Borrowing” shall have the meaning provided in Section 1.01(d).

     “Margin Stock” shall have the meaning provided in Regulation U.

     “Material Adverse Effect” shall mean (i) any material adverse effect on
the business, operations, property, assets, liabilities or condition
(financial or otherwise) of the
Borrowers and their Subsidiaries taken as a whole, or (ii) any material adverse
effect (x) on the
rights or remedies of the Lenders or the Administrative Agent hereunder or
under any other
Credit Document or (y) on the ability of the Credit Parties taken as a whole to
perform their
obligations to the Lenders or the Administrative Agent hereunder or under the
other Credit
Documents.

     “Maturity Date” shall mean June 29, 2007, as such date may be extended
pursuant
to Section 1.17.

     “Maximum Competitive Bid Loan Amount” at any time shall mean an amount
equal to 50% of the Total Revolving Loan Commitment then in effect.

     “Maximum Swingline Amount” shall mean the lesser of (i) $50,000,000 and
(ii)
the Total Commitment then in effect.

     “Metropolitan Statistical Area” shall mean the United States statistical
area as
determined by Regional Economic Information Systems and based on total
commercial real
estate (office, retail and warehouse) square footage). As of the Effective
Date, the top 10
Metropolitan Statistical Areas in order of ranking are: (1) Los Angeles,
California; (2) Chicago,
Illinois; (3) Dallas, Texas; (4) New York City, New York; (5) Washington, D.C.;
(6) Atlanta,

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Georgia; (7) Houston, Texas; (8) Philadelphia, Pennsylvania; (9) Detroit,
Michigan; and (10)
Cleveland, Ohio.

     “Minimum Borrowing Amount” shall mean (i) in the case of Term Loans or
Revolving Loans maintained as Base Rate Loans, $1,000,000, (ii) in the case of
Term Loans or
Revolving Loans maintained as Eurodollar Rate Loans, $1,000,000, (iii) in the
case of
Competitive Bid Loans, $25,000,000, and (iv) in the case of Swingline Loans,
$500,000.

     “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor
thereto.

     “Moody’s Credit Rating” shall mean the publicly announced Credit Rating
assigned by Moody’s as in effect from time to time.

     “Mortgage Interests” shall mean a mortgage (or similar instrument)
encumbering
a Real Estate Asset (including, without limitation, a pledge of Equity
Interests in a direct or
indirect owner of a Real Estate Asset as security for a mezzanine finance
transaction) and
securing indebtedness that is owed to Trizec or any of its Consolidated
Entities, including
certificates of interests in real estate mortgage investment conduits.

     “Multiemployer Plan” shall mean at any time an employee pension benefit
plan
within the meaning of Section 4001(a)(3) of ERISA to which any member of the
ERISA Group
is then making or accruing an obligation to make contributions or has within
the preceding five
plan years made contributions, including for these purposes any Person which
ceased to be a
member of the ERISA Group during such five year period.

     “Multiple Voting Shares” shall mean the Multiple Voting Shares as defined
in the
Articles of Incorporation of Trizec Canada dated January 29, 2002, as amended
by the Certificate
of Amendment dated March 11, 2002.

     “Munk Family” shall mean Peter Munk, his spouse, any of his issue and the
spouses of any of them, his or their respective legal representatives, any
corporation of which all
the voting shares are beneficially owned, directly or indirectly, by any one or
more of the
foregoing persons and any trust the only beneficiaries of which are any one or
more of the
foregoing persons.

     “NAIC” shall mean the National Association of Insurance Commissioners.

     “Net Operating Income” shall mean, for any period and with respect to the
Borrowing Base Properties, an amount equal to (i) the aggregate rental and
other income from
the operation of all Borrowing Base Properties during such period; minus (ii)
all expenses and
other proper charges incurred in connection with the operation of such
Borrowing Base
Properties (including, without limitation, real estate taxes, management fees,
bad debt expenses
and rent under ground leases) during such period; but, in any case, before
payment of or provision for debt service charges for such period, income taxes for such period,
and depreciation,
amortization, and other non-cash expenses for such period (except that, solely
for purposes of
Notices of Borrowing, Notices of Competitive Bid Borrowing and Section 9.14,
any adjustments
for so-called “straight-line rental accounting” shall be excluded from rental
income).

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     “Non-Defaulting Lender” shall mean and include each Lender other than a
Defaulting Lender.

     “Note” shall mean each Term Loan Note, Revolving Loan Note, Competitive
Bid
Note and Swingline Loan Note.

     “Notice of Borrowing” shall have the meaning provided in Section 1.03(a).

     “Notice of Competitive Bid Borrowing” shall have the meaning provided in
Section 1.04(a).

     “Notice of Conversion/Continuation” shall have the meaning provided in
Section
1.06.

     “Notice Office” shall mean the office of the Administrative Agent located
at 90
Hudson Street, 5th Floor, Jersey City, New Jersey 07302, Attention: Mary
Rodwell, Telecopier
Numbers: (201) 593-2308/2309/2310, Telephone Numbers: (201)
593-2165/2163/2170, or such
other office in the continental United States or person as the Administrative
Agent may hereafter
designate in writing as such to the other parties hereto.

     “Obligation Currency” shall have the meaning provided in Section 13.20.

     “Obligations” shall mean all amounts owing to the Administrative Agent,
any
Lender or any Issuing Lender pursuant to the terms of this Agreement or any
other Credit
Document.

     “Other Hedging Agreement” shall mean any foreign exchange contracts,
currency
swap agreements, commodity agreements or other similar agreements or
arrangements designed
to protect against the fluctuations in currency values.

     “Participant” shall have the meaning provided in Section 2.04(a).

     “Payment Office” shall mean the office of the Administrative Agent located
at 90
Hudson Street, 5th Floor, Jersey City, New Jersey 07302, Attention: Mary
Rodwell, or such other
office in the continental United States as the Administrative Agent may
hereafter designate in
writing as such to the other parties hereto.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

     “Percentage” of any Lender with a Revolving Loan Commitment at any time
shall
mean a fraction (expressed as a percentage) the numerator of which is the
Revolving Loan
Commitment of such Lender at such time and the denominator of which is the
Total Revolving
Loan Commitment at such time, provided that if the Percentage of any Lender is
to be determined after the Total Revolving Loan Commitment has been terminated, then the
Percentages of
the Lenders shall be determined immediately prior (and without
giving effect) to such
termination.

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     “Permitted Encumbrances” shall have the meaning provided in Section 9.01.

     “Permitted Holders” shall mean (x) Trizec Canada (and/or one or more
Wholly
Owned Subsidiaries of Trizec Canada) so long as the Trizec Canada Control
Requirements are
satisfied, (y) Peter Munk (and/or one or more Wholly Owned Subsidiaries of
Peter Munk) and
(z) in the case of clause (i)(A) of the definition of Change of Control only,
Trizec Canada (and/or
one or more Wholly Owned Subsidiaries of Trizec Canada) so long as Peter Munk
(and/or one or
more Wholly Owned Subsidiaries of Peter Munk) has (and does not fail to
exercise) the power to
elect a majority of the directors of Trizec Canada.

     “Person” shall mean any individual, partnership, joint venture, limited
liability
company, firm, corporation, association, trust or other enterprise or any
government or political
subdivision or any agency, department or instrumentality thereof.

     “Plan” shall mean any pension plan as defined in Section 3(2) of ERISA
(other
than a Multiemployer Plan), which is maintained or contributed to by (or to
which there is an
obligation to contribute of) any member of the ERISA Group, and each such plan
for the five-year period immediately following the latest date on which the member of the
ERISA Group
maintained, contributed to or had an obligation to contribute to such plan.

     “Preferred Stock” as applied to the capital stock of any Person, shall
mean capital
stock of such Person (other than common stock of such Person and, in the case
of Trizec, Special
Voting Stock) of any class or classes (however designed) that ranks prior, as
to the payment of
dividends or as to the distribution of assets upon any voluntary or involuntary
liquidation,
dissolution or winding up of such Person, to shares of capital stock of any
other class of such
Person.

     “Pricing Period” shall mean each period which shall commence on the date
upon
which the respective officer’s certificate is delivered pursuant to Section
8.01(e) (together with
the related financial statements pursuant to Section 8.01(a)(A) or (b)(A), as
the case may be) and
which shall end on the date of actual delivery of the next officer’s
certificates pursuant to Section
8.01(e) (and related financial statements) or the latest date on which such
next officer’s certificate (and related financial statements) is required to be so delivered; it
being understood that
the first Pricing Period commenced with the delivery of Trizec’s financial
statements (and
related officer’s certificate) in respect of its fiscal year ending on December
31, 2003.

     “Prime Lending Rate” shall mean the rate which the Administrative Agent
announces from time to time as its prime lending rate, the Prime Lending Rate
to change when
and as such prime lending rate changes. The Prime Lending Rate is a reference
rate and does not
necessarily represent the lowest or best rate actually charged
to any customer. The
Administrative Agent may make commercial loans or other loans at rates of
interest at, above or
below the Prime Lending Rate.

     “Pro Forma Basis” shall mean, in connection with any calculation of (a)
compliance with Section 9.02(a)(ii)(z), (b) Consolidated Total Asset Value and (c)
Borrowing Base
Property NOI, the calculation thereof after giving effect on a pro forma basis
to the sale or

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acquisition of any Real Estate Asset after the first day of the relevant Test
Period and on or prior
to the date of determination, with the following rules to apply in connection
therewith:

     (i) in making any determination of Fair Market Value, pro forma
effect shall be given to (A) any sale of any Real Estate Asset consummated
after the first
day of the relevant two fiscal quarter period and on or prior to the date
of determination
as if such sale was consummated on the first day of the relevant two
fiscal quarter period,
and (B) the acquisition of any Real Estate Asset after the first day of
the relevant two
fiscal quarter period and on or prior to the date of determination as
provided in the
definition of Fair Market Value; and

     (ii) in making any determination of Borrowing Base Property NOI, pro
forma effect shall be given to (A) the addition of any other Borrowing
Base Property to
the Borrowing Base after the first day of the relevant Test Period and on
or prior to the
date of determination as if such addition occurred on the first day of the
relevant Test
Period, and (B) the removal of any Borrowing Base Property from the
Borrowing Base
after the first day of the relevant Test Period and on or prior to the
date of determination
as if such removal occurred on the first day of the relevant Test Period.

     “Projections” shall mean the projections contained in the Lender
Information
Package, dated May, 2004, which were prepared by or on behalf of the Borrowers
in connection
with this Agreement and delivered to the Administrative Agent and the Lenders
prior to the
Effective Date.

     “Property” of a Person shall mean any and all property, whether real,
personal,
tangible, intangible or mixed, of such Person, or other assets owned, leased or
operated by such
Person.

     “Quarterly Payment Date” shall mean the last day of each
March, June,
September, and December commencing December 31, 2004.

     “Rating Agency” shall mean each of Fitch, Moody’s and S&P.

     “RCRA” shall mean the Resource Conservation and Recovery Act, as the same
may be amended from time to time, 42 U.S.C. § 6901 et seq.

     “Real Estate Assets” of any Person shall mean all assets of such Person
constituting Real Property.

     “Real Property” of any Person shall mean all the right, title and interest
of such
Person in and to land, improvements and fixtures, including Leaseholds;
provided, however, that
solely for the purpose of the definitions of Consolidated Total Asset Value and
Costs, Real
Property shall include all the right, title and interest of such Person as
lessee, licensee, property
manager or leasing agent under leases or licenses of, or management or leasing
agreements for,
land, improvements and/or fixtures.

     “Recourse” shall mean, with respect to any Person, any Indebtedness or
other
obligation or liability of any other Person all or a portion of which is
guaranteed by, or for which

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a recourse claim may be made against, such first Person (whether by contract,
the ownership of Equity Interests, by operation of law or otherwise); provided,
however, that personal recourse of such first Person under any Secured
Indebtedness of another Person for fraud, misrepresentation, misapplication of
cash, waste, environmental claims and liabilities and other circumstances
customarily excluded by institutional lenders from exculpation provisions
and/or included in separate indemnification agreements in non-recourse
financing of Real Estate Assets shall not, by itself, cause such Indebtedness
to be characterized as Recourse to such first Person except to the extent that
a claim is made against such first Person as a result of any of the foregoing
items described above in this proviso.

     “Register” shall have the meaning provided in Section 13.15.

     “Regulation D” shall mean Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof establishing reserve requirements.

     “Regulation T” shall mean Regulation T of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof.

     “Regulation U” shall mean Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof.

     “Regulation X” shall mean Regulation X of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all
or a portion thereof

     “Release” shall mean disposing, discharging, injecting, spilling,
pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring or
migrating, into or upon any land or water or air, or otherwise entering into
the environment.

     “Release Date” shall mean each date on which a Borrowing Base Property is
removed from the Borrowing Base pursuant to Section 8.13(b).

     “Replaced Lender” shall have the meaning provided in
Section 1.15.

     “Replacement Lender” shall have the meaning
provided in Section 1.15.

     “Reportable Event” shall mean any event described in Section 4043(c) of
ERISA with respect to a Plan other than those events as to which the 30-day
notice is waived under subsection .22, .23, .25, .27 or .28 of PBGC Regulation
Section 4043.

     “Required Lenders” shall mean Non-Defaulting Lenders the sum of whose
Commitments (or after the termination thereof, outstanding Loans and
Percentages of (x) outstanding Swingline Loans and (y) Letter of Credit
Outstandings) represents an amount greater than 50% of the Total Commitment
less the Commitments of all Defaulting Lenders (or after the termination
thereof, the sum of the then total outstanding Loans of all Non-Defaulting
Lenders

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and the aggregate Percentages of all Non-Defaulting Lenders of the total (x)
outstanding Swingline Loans and (y) Letter of Credit Outstandings at such
time).

     “Restricted Holding” shall have the meaning provided in
Section 9.06.

     “Restricted Property” shall have the
meaning provided in Section 9.01

     . “Revolving Loan” shall
have the meaning provided in Section 1.01(b).

     “Revolving Loan Commitment” shall mean, for each Lender, the amount, if
any, set forth opposite such Lender’s name in Schedule I directly below the
column entitled “Revolving Loan Commitment,” as the same may be (a) reduced
from time to time pursuant to Sections 3.02, 3.03 or 10, (b) increased from
time to time pursuant to Section 1.16 or (c) adjusted from time to time as a
result of assignments to or from such Lender pursuant to Sections 1.15 or
13.04(b).

     “Revolving Loan Commitment Commission” shall have the meaning provided in
Section 3. 01(b).

     “Revolving
Loan Facility Fee” shall have the meaning provided in Section
3.01(b)(ii).

     “Revolving Loan Note” shall have the meaning provided in Section
1.06(a).

     “S&P” shall mean Standard & Poor’s Ratings Service, a division of The
McGraw-Hill Companies, Inc.

     “S&P Credit Rating” shall mean the publicly announced Credit Rating
assigned by S&P as in effect from time to time.

     “SEC” shall have the meaning provided in Section 8.01(g).

     “Section 4.04(b)(ii).
Certificate” shall have the meaning provided in Section
4.04(b)(ii).

     “Section 9.14 Default” shall have the meaning provided in Section
4.02(c)(i).

     “Secured Consolidated Total Indebtedness” of any Person at any time shall
mean the sum of, without duplication, (i) the Consolidated Total Indebtedness
of such Person at such time which is secured by a Lien evidenced by a mortgage,
deed of trust, security agreement, pledge agreement or other similar security
interest on Property of such Person or its Subsidiaries or Unconsolidated
Entities, (ii) all other Consolidated Total Indebtedness of such Person which
has been incurred by a Subsidiary of such Person which is not a Credit Party or
by an Unconsolidated Entity of such Person (but excluding that portion of such
Indebtedness, if any, for which there is Recourse to a Credit Party), and (iii)
the amount of all cash and the fair market value of all other Property (as
reasonably determined by the relevant Credit Party) subject to a Lien described
in Section 9.01(f).

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     “Secured Indebtedness” of any Person shall mean any Indebtedness of such
Person that is secured by a Lien evidenced by a mortgage, deed of trust,
security agreement, pledge agreement or other similar security interest on
Property of such Person.

     “Securities Act” shall mean the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.

     “Senior Financial Officer” of any Person shall mean the chief financial
officer or treasurer of such Person or its general partner or managing member,
as the case may be.

     “SPC” shall have the meaning provided in Section 13.04(b).

     “Special Voting Stock” shall mean the Special Voting Stock as defined in
the Fourth Amended and Restated Certificate of Incorporation of Trizec dated
February 8, 2002.

     “Specified Default” shall mean any Default under Section 10.01 or
10.05.

     “Spread” shall mean a percentage per annum in excess of, or less than,
the Eurodollar Rate.

     “Spread Competitive Bid Borrowing” shall mean a Competitive Bid Borrowing
with respect to which the Borrowers have requested the Bidder Lenders to make
Competitive Bid Loans at a Spread over or under the Eurodollar Rate.

     “Start Date” shall mean, with respect to any Pricing Period, the first
day of such Pricing Period.

     “Stated Amount” of each Letter of Credit shall mean, at any time, the
maximum amount available to be drawn thereunder (in each case determined
without regard to whether any conditions to drawing could then be met).

     “Subordination Agreement” shall have the meaning specified in
Section 5.10.

     “Subsidiaries Guaranty” shall have the meaning
provided in Section 5.07.

     “Subsidiary” shall mean, as to any Person, (i) any corporation more than
50% of whose stock of any class or classes having by the terms thereof ordinary
voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person and/or one or
more Subsidiaries of such Person, (ii) any partnership, association, joint
venture or other entity in which such Person and/or one or more Subsidiaries of
such Person has more than a 50% equity interest at the time, and (iii) to the
extent not otherwise included in preceding clauses (i) and (ii), any
Consolidated Entity of such Person.

     “Subsidiary Guarantor” shall mean (i) each Borrowing Base Property Owner
(or, in the case of any Borrowing Base Property which is owned or leased by a
joint venture in which

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any Subsidiary of any of the Borrowers owns an Equity Interest, such
Subsidiary), (ii) TRE and (iii) each direct Subsidiary of Trizec which is
described in Section 8.13(f).

     “Swingline Expiry Date” shall mean the date falling seven Business Days
prior to the Maturity Date.

     “Swingline Lender” shall mean DBTCA.

     “Swingline Loan” shall have the meaning provided in Section
1.01(c).

     “Swingline Loan Note” shall have the meaning provided in Section
1.06(a).

     “Tax Benefit” shall have the meaning provided in Section 4.04(a).

     “Taxes” shall have the meaning provided in Section 4.04(a).

     “Term Loan” shall have the meaning provided in Section 1.01(a).

     “Term Loan Commitment” shall mean, for each Lender, the amount, if any,
set forth opposite such Lender’s name on Schedule I directly below the column
entitled “Term Loan Commitment”, as the same may be (a) reduced from time to
time pursuant to Sections 3.02, 3.03 or 10, (b) increased from time to time
pursuant to Section 1.16 or (c) adjusted from time to time as a result of
assignments to or from such Lender pursuant to Sections 1.15 or 13.04(b).

     “Term Loan Commitment Commission” shall have the meaning provided in
Section 3.01(a).

     “Term Loan Commitment Expiration Date” shall mean the 45th day following
the Effective Date.

     “Term Loan Facility Fee” shall have the meaning provided in Section
3.01(a)(ii).

     “Term Loan Note” shall have the meaning provided in
Section 1.06(a).

     “Test Date” shall mean, with respect to any Start Date, the last day of
the most recent fiscal quarter of Trizec ended immediately prior to such Start
Date.

     “Test Period” shall mean, for any Person, each period of four consecutive
completed fiscal quarters of such Person (in each case taken as one accounting
period); provided, however, for purposes of calculating Net Operating Income
only insofar as Net Operating Income is used to compute Borrowing Base
Property NOI, such Test Period instead shall be the most recently ended two
completed fiscal quarters of such Person.

     “Total Commitment” shall mean, at any time, the sum of the Commitments of
each of the Lenders.

     “Total Leverage” of any Person at any time shall mean the Consolidated
Total Indebtedness of such Person as a percentage of the Consolidated Total
Asset Value of such Person at such time.

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     “Total Revolving Loan Commitment” shall mean, at any time, the sum of the
Revolving Loan Commitments of each of the Lenders.

     “Total Term Loan Commitment” shall mean, at any time, the sum of the Term
Loan Commitments of each of the Lenders.

     “Total Unutilized Revolving Loan Commitment” shall mean, at any time, an
amount equal to the remainder of (x) the Total Revolving Loan Commitment at
such time less (y) the sum of the aggregate principal amount of all Revolving
Loans, Swingline Loans and Competitive Bid Loans then outstanding plus the
then aggregate amount of all Letter of Credit Outstandings.

     “Total Unutilized Term Loan Commitment” shall mean, at any time, an amount
equal to the remainder of (x) the Total Term Loan Commitment at such time less
(y) the sum of the aggregate principal amount of all Term Loans then
outstanding.

     “Tranche” shall mean the respective facility and commitments utilized in
making Loans hereunder, with there being three separate Tranches on the
Effective Date, i.e., the Term Loans, the Revolving Loans and the Swingline
Loans.

     “TRE” shall mean Trizec R&E Holdings, Inc., a Delaware corporation.

     “Trizec” shall have the meaning provided in the first paragraph of this
Agreement.

     “Trizec Canada” shall mean Trizec Canada Inc., a publicly-traded Ontario
corporation.

     “Trizec Canada Control Requirements” shall mean: (i)(x) one or more
members of the Munk Family has (and does not fail to exercise) the power to
elect a majority of the directors of Trizec Canada solely through the
ownership of Multiple Voting Shares, or (y) no Person or “group” (within the
meaning of Sections 13(d) and 14(d) under the Exchange Act, as in effect on
the Effective Date) (A) shall have beneficial ownership of 25% or more on a
fully diluted basis of the voting and/or economic interest in the capital
stock of Trizec Canada (provided that the beneficial ownership by any Person
or group of 25% or more on a fully diluted basis of the voting and/or economic
interest in the capital stock of Trizec Canada on or prior to the date on
which one or more members of the Munk Family ceases to have (or fails to
exercise) the power to elect a majority of the directors of Trizec Canada
shall be permitted under this clause (i)(y)(A) so long as such Person or
‘group’ (x) does not acquire any beneficial ownership of any additional voting
and/or economic interest in the capital stock of Trizec Canada and (y) reduces
such beneficial ownership to less than 25% (30% in the case of the Canada
Pension Plan Investment Board (“CPPIB”) on a fully diluted basis, in each case
within 60 days following such date; and provided further that beneficial
ownership of up to 30% on a fully diluted basis of the voting and/or economic
interest in the capital stock of Trizec Canada by CPPIB shall be permitted
under this clause (i)(y)(A), although any subsequent transfer, sale or other
disposition by CPPIB of all or any portion of the shares of capital stock of
Trizec Canada shall be subject to the provisions of this clause (i)(y)(A)
determined without regard to this proviso) or (B) shall have obtained the
power (whether or not exercised) to elect a majority of the directors of
Trizec

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Canada, and (ii) the Board of Directors of Trizec Canada continues to consist
of a majority of Continuing Trizec Canada Directors.

     “Type” shall mean the type of Loan (other than a Competitive Bid Loan)
determined with regard to the interest option applicable thereto i.e., whether
a Base Rate Loan or a Eurodollar Rate Loan.

     “UCC” shall mean the Uniform Commercial Code as from time to time in
effect in the relevant jurisdiction.

     “Unconsolidated Allocation Percentage” shall mean, for any Person, with
respect to such Person’s Unconsolidated Entities the percentage ownership
interest of such Person in such Unconsolidated Entity.

     “Unconsolidated Entity” shall mean, with respect to any Person, at any
date, any other Person in whom such Person holds an Investment, and whose
financial results would not be consolidated under GAAP with the financial
results of such Person on the consolidated financial statements of such
Person, if such statements were prepared as of such date.

     “Unencumbered” shall mean, with respect to any Property, that such
Property is not subject to any Lien or other restrictions of the type
described in the introductory paragraph to Section 9.01 other than a Permitted
Encumbrance.

     “Unfunded Current Liability” of any Plan shall mean the amount, if any,
by which the value of the accumulated plan benefits under the Plan determined
on a plan termination basis in accordance with actuarial assumptions at such
time consistent with those prescribed by the PBGC for purposes of Section 4044
of ERISA, exceeds the fair market value of all plan assets allocable to such
liabilities under Title IV of ERISA (excluding any accrued but unpaid
contributions).

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

     “Unpaid Drawing” shall have the meaning provided
in Section 2.05(a).

     “Unrestricted Cash and Cash Equivalents” of any Person shall at any time
shall mean the sum of (a) the aggregate amount of all unrestricted cash then
actually held by such Person or any of its Subsidiaries (excluding without
limitation until forfeited to, or otherwise entitled to be retained by, such
Person or any of its Subsidiaries, tenant security and other restricted
deposits) and (b) the aggregate amount of all unrestricted Cash Equivalents
(valued at fair market value) then held by such Person or any of its
Subsidiaries. As used in this definition, “unrestricted” shall mean the
specified asset is not subject to any Liens in favor of any Person.

     “Unsecured Consolidated Total Indebtedness” of any Person at any time
shall mean the aggregate amount of all Consolidated Total Indebtedness of such
Person at such time (including, without limitation, all outstanding
Obligations and all Unsecured Indebtedness in the form of payment guaranties
of Secured Indebtedness) that is not Secured Consolidated Total Indebtedness;
provided, however, that solely for the purpose of calculating the Borrowing
Base Amount, Unsecured Consolidated Total Indebtedness of Trizec shall not
include up to

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$100,000,000 of Unsecured Indebtedness incurred at any time by Trizec (but not
any other Credit Party) under payment guaranties by it of the Secured
Consolidated Total Indebtedness of its Subsidiaries for borrowed money.

     “Unsecured Indebtedness” of any Person shall mean any Indebtedness of
such Person that is not secured by a Lien evidenced by a mortgage, deed of
trust, security agreement, pledge agreement or other similar security interest
on any Property of such Person.

     “Unutilized Revolving Loan Commitment” shall mean, with respect to any
Lender at any time, an amount equal to the remainder of (x) such Lender’s
Revolving Loan Commitment at such time, less (y) the sum of the aggregate
principal amount of all Revolving Loans of such Lender then outstanding and
such Lender’s Percentage of all Letter of Credit Outstandings at such time.

     “Unutilized Term Loan Commitment” shall mean, with respect to any Lender
at any time, an amount equal to the remainder of (x) such Lender’s Term Loan
Commitment at such time, less (y) the sum of the aggregate principal amount of
all Term Loans of such Lender then outstanding.

     “Utilization Percentage” shall mean, at any time, the ratio (expressed as
a percentage) of (a) the sum of (i) the aggregate principal amount of all Term
Loans outstanding at such time, (ii) the aggregate principal amount of all
Revolving Loans outstanding at such time and (iii) the aggregate amount of all
Letter of Credit Outstandings at such time to (b) the Total Commitment at such
time.

     “Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any
corporation 100% of whose capital stock (other than directors’ qualifying
shares and other nominal amounts of shares required by applicable law to be
held by Persons (other than directors)) is at the time owned by such Person
and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any
partnership, limited liability company, association, joint venture or other
entity in which such Person and/or one or more Wholly-Owned Subsidiaries of
such Person has a 100% Equity Interest at such time. For purposes of this
definition, Holdings, if Holdings becomes the Additional Borrower, or any
other Additional Borrower if formed shall be deemed to be a Wholly-Owned
Subsidiary of Trizec as long as the requirements of Section 8.04(b) continue
to be satisfied with respect to the Additional Borrower.

     SECTION 12. The Administrative Agent.

     12.01 Appointment. The Lenders hereby irrevocably designate and appoint
DBTCA as Administrative Agent to act as specified herein and in the other
Credit Documents. Each Lender hereby irrevocably authorizes, and each holder of
any Note by the acceptance of such Note shall be deemed irrevocably to
authorize, the Administrative Agent to take such action on their behalf under
the provisions of this Agreement, the other Credit Documents and any other
instruments and agreements referred to herein or therein and to exercise such
powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Administrative Agent by the terms hereof and
thereof and such other powers as are reasonably

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incidental thereto. The Administrative Agent may perform any of its duties
hereunder by or through its respective officers, directors, agents, employees
or affiliates.

     12.2 Nature of Duties. The Administrative Agent shall not have any duties
or
responsibilities except those expressly set forth in this Agreement and in
the other Credit
Documents. Neither the Administrative Agent nor any of its officers,
directors, agents,
employees or affiliates shall be liable to the Lenders for any action
taken or omitted by it or them
hereunder or under any other Credit Document or in connection herewith or
therewith, unless
caused by its or their gross negligence or willful misconduct (as
determined by a court of
competent jurisdiction in a final and non-appealable decision). The duties
of the Administrative
Agent shall be mechanical and administrative in nature; the Administrative
Agent shall not have
by reason of this Agreement or any other Credit Document a fiduciary
relationship in respect of
any Lender or the holder of any Note; and nothing in this Agreement or any
other Credit
Document, expressed or implied, is intended to or shall be so construed as
to impose upon the
Administrative Agent any obligations in respect of this Agreement or any
other Credit Document
except as expressly set forth herein or therein.

     12.3 Lack of Reliance on the Administrative Agent. Independently and
without
reliance upon the Administrative Agent, each Lender and the holder of each
Note, to the extent it
deems appropriate, has made and shall continue to make (i) its own
independent investigation of
the financial condition and affairs of the Credit Parties and their
respective Subsidiaries in
connection with the making and the continuance of the Loans, the issuance
of and participation
in Letters of Credit and the taking or not taking of any action in
connection herewith and (ii) its
own appraisal of the creditworthiness of the Credit Parties and their
respective Subsidiaries and,
except as expressly provided in this Agreement, the Administrative Agent
shall not have any
duty or responsibility, either initially or on a continuing basis, to
provide any Lender or the
holder of any Note with any credit or other information with respect
thereto, whether coming
into its possession before the making of the Loans or at any time or times
thereafter. The
Administrative Agent shall not be responsible to any Lender or the holder
of any Note for any
recitals, statements, information, representations or warranties herein or
in any document,
certificate or other writing delivered in connection herewith or for the
execution, effectiveness,
genuineness, validity, enforceability, perfection, collectibility,
priority or sufficiency of this
Agreement or any other Credit Document or the financial condition of the
Credit Parties or any
of their respective Subsidiaries or be required to make any inquiry
concerning either the
performance or observance of any of the terms, provisions or conditions of
this Agreement or
any other Credit Document, or the financial condition of the Credit
Parties or any of their
respective Subsidiaries or the existence or possible existence of any
Default or Event of Default.

     12.4 Certain Rights of the Administrative Agent. The Administrative
Agent
shall have the right to request instructions from the Required Lenders at
any time. If the
Administrative Agent shall request instructions from the Required Lenders
with respect to any
act or action (including failure to act) in connection with this Agreement
or any other Credit
Document, the Administrative Agent shall be entitled to refrain from such
act or taking such
action unless and until the Administrative Agent shall have received
instructions from the
Required Lenders; and the Administrative Agent shall not incur liability
to any Person by reason
of so refraining. Without limiting the foregoing, no Lender or the holder
of any Note shall have
any right of action whatsoever against the Administrative Agent as a
result of the Administrative

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Agent acting or refraining from acting hereunder or under any other Credit
Document in accordance with the instructions of the Required Lenders.

     12.05 Reliance. The Administrative Agent shall be entitled to rely, and
shall be
fully protected in relying, upon any note, writing, resolution, notice,
statement, certificate, telex,
teletype or telecopier message, cablegram, radiogram, order or other
document or telephone
message signed, sent or made by any Person that the Administrative Agent
believed to be the
proper Person, and, with respect to all legal matters pertaining to this
Agreement and any other
Credit Document and its duties hereunder and thereunder, upon advice of
counsel selected by the
Administrative Agent (which may be counsel for any of the Credit Parties)
and, with respect to
other matters, upon advice of independent public accountants or other
experts selected by it.

     12.06 Indemnification. To the extent the Administrative Agent is not
reimbursed
and indemnified by the Credit Parties, the Lenders will reimburse and
indemnify the Administrative Agent, in proportion to their respective “percentages” as used in
determining the Required
Lenders, for and against any and all liabilities, obligations, losses,
damages, penalties, claims,
actions, judgments, costs, expenses or disbursements of whatsoever
kind or nature which may be
imposed on, asserted against or incurred by the Administrative Agent in
performing its respective duties hereunder or under any other Credit Document, in any way
relating to or arising out
of this Agreement or any other Credit Document; provided that no Lender
shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs,
expenses or disbursements resulting from the Administrative Agent’s gross
negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final
and non-appealable
decision).

     12.07 The Administrative Agent in its Individual Capacity. With respect
to its
obligation to make Loans, or issue or participate in Letters of Credit,
under this Agreement, the
Administrative Agent shall have the rights and powers specified herein for
a “Lender” and may
exercise the same rights and powers as though it were not performing the
duties specified herein;
and the term “Lenders,” “Required Lenders,” “holders of Notes” or any
similar terms shall,
unless the context clearly otherwise indicates, include the Administrative
Agent in its individual
capacity. The Administrative Agent may accept deposits from, lend money
to, and generally
engage in any kind of banking, investment banking, advisory, trust or
other business with any
Credit Party or any Affiliate of a Credit Party as if it were not
performing the duties specified
herein, and may accept fees and other consideration from any Credit Party
for services in
connection with this Agreement and otherwise without having to account for
the same to the
Lenders.

     12.08 Holders. The Administrative Agent may deem and treat the payee of
any
Note as the owner thereof for all purposes hereof unless and until a
written notice of the assignment, transfer or endorsement thereof, as the case may be, shall have been
filed with the
Administrative Agent. Any request, authority or consent of any Person who,
at the time of making such request or giving such authority or consent, is the holder of any
Note shall be conclusive
and binding on any subsequent holder, transferee, assignee or indorsee, as
the case may be, of
such Note or of any Note or Notes issued in exchange therefor.

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     12.09 Resignation by the Administrative Agent; Removal of the
Administrative
Agent. (a) The Administrative Agent may resign from the performance of all its
functions and duties hereunder and/or under the other Credit Documents at any
time by giving 15 Business Days’ prior written notice to the Lenders and the
Borrowers. Such resignation shall take effect upon the appointment of a
successor Administrative Agent pursuant to clauses (b) and (c) below or as
otherwise provided below.

     (b) Upon any such notice of resignation, the Required Lenders shall
appoint a successor Administrative Agent hereunder or thereunder which shall be
a commercial bank or trust company reasonably acceptable to the Borrowers.

     (c) If a successor Administrative Agent shall not have been so appointed
within such 15 Business Day period, the Administrative Agent, with the consent
of the Borrowers (which consent shall not be unreasonably withheld or delayed),
shall then appoint a successor Administrative Agent which shall serve as
Administrative Agent hereunder or thereunder until such time, if any, as the
Required Lenders appoint a successor Administrative Agent as provided above.

     (d) If no successor Administrative Agent has been appointed pursuant to
clause (b) or (c) above by the 20th Business Day after the date such notice of
resignation was given by the Administrative Agent, the Administrative Agent’s
resignation shall become effective and the Required Lenders shall thereafter
perform all the duties of the Administrative Agent hereunder and/or under any
other Credit Document until such time, if any, as the Required Lenders appoint
a successor Administrative Agent as provided above.

     (e) Upon resignation of the Administrative Agent pursuant to this Section
12.09, the Administrative Agent shall remain indemnified to the extent provided
in this Agreement and the other Credit Documents and the provisions of this
Section 12 shall continue in effect for the benefit of such Administrative
Agent for all of its actions and inactions while serving as the Administrative
Agent.

     (f) In addition, the Required Lenders shall have the right to remove the
Administrative Agent and appoint a successor Administrative Agent who shall be
a commercial bank or trust company reasonably acceptable to the Borrowers in
the event that the Administrative Agent has been grossly negligent or has
willfully misconducted itself in performing its functions and duties under this
Agreement.

     SECTION 13. Miscellaneous.

     13.01 Payment of Expenses, etc. The Borrowers jointly and severally shall:
(i) whether or not the transactions herein contemplated are consummated, pay
all reasonable out-of-pocket costs and expenses of (A) the Administrative Agent
and its affiliates (including, without limitation, the reasonable fees and
disbursements of White & Case LLP) in connection with the preparation,
execution and delivery of this Agreement and the other Credit Documents and the
documents and instruments referred to herein and therein, any addition of a
Real Estate Asset to, or removal of a Borrowing Base Property from, the
Borrowing Base, and any amendment, waiver or consent relating to this
Agreement, the other Credit Documents or the documents and

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instruments referred to herein and therein, (B) the Administrative Agent and
its affiliates in connection with their syndication efforts (including, without
limitation, printing, distribution and meetings) with respect to this Agreement
and (C) the Administrative Agent and its affiliates and, after the occurrence
of an Event of Default, each of the Lenders in connection with the enforcement
of this Agreement and the other Credit Documents and the documents and
instruments referred to herein and therein or in connection with any
refinancing or restructuring of the credit arrangements provided under this
Agreement in the nature of a “workout” or pursuant to any insolvency or
bankruptcy proceedings (including, in each case in respect of preceding clauses
(A), (B) and (C) without limitation, (x) the reasonable fees and disbursements
of counsel and consultants for the Administrative Agent and its affiliates (it
being understood that, for purposes of this clause (i), the Administrative
Agent and its affiliates shall be entitled to be reimbursed for one primary
counsel and, to the extent that the Administrative Agent in its good faith
reasonable discretion determines that additional counsel is necessary or
advisable, for one or additional local or foreign counsel in each jurisdiction
in which the Administrative Agent has made such a determination) and (y) after
the occurrence of an Event of Default, also the reasonable fees and
disbursements of only one counsel for the other Lenders as a group); (ii) pay
and hold the Administrative Agent and each of the Lenders harmless from and
against any and all present and future stamp, excise and other similar
documentary taxes with respect to the foregoing matters and save the
Administrative Agent and each of the Lenders harmless from and against any and
all liabilities with respect to or resulting from any delay or omission (other
than to the extent attributable to the Administrative Agent or such Lender) to
pay such taxes; and (iii) indemnify the Administrative Agent and each Lender,
and each of their respective affiliates officers, directors, employees,
representatives and agents from and hold each of them harmless against any and
all liabilities, obligations (including removal or remedial actions), losses,
damages, penalties, claims, actions, judgments, suits, costs, expenses and
disbursements (including reasonable attorneys’ and consultants’ fees and
disbursements) incurred by, imposed on or assessed against any of them as a
result of, or arising out of, or in any way related to, or by reason of, (a)
any investigation, litigation or other proceeding (whether or not the
Administrative Agent or any Lender is a party thereto and whether or not such
investigation, litigation or other proceeding is brought by or on behalf of any
Credit Party) related to the entering into and/or performance of this Agreement
or any other Credit Document or the proceeds of any Loans hereunder or the
consummation of any transactions contemplated herein or in any other Credit
Document or the exercise of any of their rights or remedies provided herein or
in the other Credit Documents, or (b) the actual or alleged presence of
Hazardous Materials in the air, surface, water or groundwater or on the surface
or subsurface of any Real Property at any time owned, leased or operated by any
of the Credit Parties or any of their respective Subsidiaries, the generation,
storage, transportation, handling or disposal of Hazardous Materials by any of
the Credit Parties or any of their respective Subsidiaries at any location,
whether or not owned, leased or operated by any of the Credit Parties or any of
their respective Subsidiaries, the non-compliance of any Real Property at any
time owned, leased or operated by any of the Credit Parties or any of their
respective Subsidiaries with foreign, federal, state and local laws,
regulations, and ordinances (including applicable permits thereunder)
applicable to such Real Property, or any Environmental Claim asserted against
any of the Credit Parties, any of their respective Subsidiaries or any Real
Property at any time owned, leased or operated by any of the Credit Parties or
any of their respective Subsidiaries, including, in each case, without
limitation, the reasonable fees and disbursements of counsel and other
consultants incurred in connection with

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any such investigation, litigation or other proceeding (but excluding any
losses, liabilities, claims, damages or expenses to the extent incurred by
reason of the gross negligence or willful misconduct of the Person to be
indemnified (as determined by a court of competent jurisdiction in a final and
non-appealable decision)). In addition, the foregoing indemnification in favor
of any director, officer, employee, representative or agent of the
Administrative Agent or any Lender shall be solely in their respective
capacities as such director, officer, employee, representative or agent. To the
extent that the undertaking to indemnify, pay or hold harmless the
Administrative Agent, any Lender or any other indemnified person set forth in
the preceding sentence may be unenforceable because it is violative of any law
or public policy, the Borrowers shall make the maximum contribution to the
payment and satisfaction of each of the indemnified liabilities which is
permissible under applicable law.

     13.02 Right of Setoff. In addition to any rights now or hereafter granted
under applicable law or otherwise, and not by way of limitation of any such
rights, upon the occurrence of an Event of Default, the Administrative Agent
and each Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to any Credit Party or
to any other Person, any such notice being hereby expressly waived, to set off
and to appropriate and apply any and all deposits (general or special) and any
other Indebtedness at any time held or owing by such Lender (including, without
limitation, by branches and agencies of the Administrative Agent or such Lender
wherever located) to or for the credit or the account of any Credit Party
against and on account of the Obligations and liabilities of the Credit Parties
to the Administrative Agent or such Lender under this Agreement or under any of
the other Credit Documents, including, without limitation, all interests in
Obligations purchased by such Lender pursuant to Section 13.06(b), and all
other claims of any nature or description arising out of or connected with this
Agreement or any other Credit Document, irrespective of whether or not such
Lender shall have made any demand hereunder and although said Obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.

     13.03 Notices. Except as otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
telex or telecopier and, in the case of any confirmation by the Administrative
Agent contemplated by Section 8.13(a), email) and mailed, telexed, telecopied
or delivered: if to any Credit Party, at the address specified opposite such
Credit Party’s signature below or as provided in the Subsidiaries Guaranty, as
the case may be; if to any Lender, at its address specified on Schedule II; and
if to the Administrative Agent, at the Notice Office; or, as to the Borrowers,
any other Credit Party or the Administrative Agent, at such other address as
shall be designated by such party in a written notice to the other parties
hereto and, as to each Lender, at such other address as shall be designated by
such Lender in a written notice to the Borrowers and the Administrative Agent.
All such notices and communications shall, when mailed, telexed or telecopied,
or sent by overnight courier, be effective (x) three Business Days after
deposited in the mails, (y) one Business Day after delivered to a recognized
overnight courier, as the case may be, or (z) when sent by telex or telecopier,
except that notices and communications to the Administrative Agent and the
Borrowers shall not be effective until received by the Administrative Agent or
the Borrowers, as the case may be.

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     13.04 Benefit of Agreement; Assignments; Participations. (a) This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and assigns of the parties hereto; provided,
however, the Credit Parties may not assign or transfer any of their respective
rights, obligations or interest hereunder or under any other Credit Document
without the prior written consent of the Lenders (and any attempted such
assignment or transfer without such consent shall be null and void) and,
provided further, that, although any Lender may transfer, assign or grant
participations in its rights hereunder, such Lender shall remain a “Lender” for
all purposes hereunder and the transferee, assignee or participant, as the case
may be, shall not constitute a “Lender” hereunder and, provided further, that
no Lender shall transfer or grant any participation under which the participant
shall have rights to approve any amendment to or waiver of this Agreement or
any other Credit Document except to the extent such amendment or waiver would
(i) extend the final scheduled maturity of any Loan, Note or Letter of Credit
(unless such Letter of Credit is not extended beyond the Maturity Date) in
which such participant is participating, or reduce the rate or extend the time
of payment of interest or Fees thereon (except in connection with a waiver of
applicability of any post-default increase in interest rates) or reduce the
principal amount thereof (it being understood that any amendment or
modification to the financial definitions in this Agreement or to Section
13.07(a) shall not constitute a reduction in the rate of interest or Fees
payable hereunder), or increase the amount of the participant’s participation
over the amount thereof then in effect (it being understood that a waiver of
any Default or Event of Default or of a mandatory reduction in the Total
Commitment shall not constitute a change in the terms of such participation,
and that an increase in any Commitment (or the available portion thereof) or
Loan shall be permitted without the consent of any participant if the
participant’s participation is not increased as a result thereof) or (ii)
consent to the assignment or transfer by the Borrowers or the Additional
Borrower if formed of any of their respective rights and obligations under this
Agreement. In the case of any such participation, the participant shall not
have any rights under this Agreement or any of the other Credit Documents (the
participant’s rights against such Lender in respect of such participation to be
those set forth in the agreement executed by such Lender in favor of the
participant relating thereto) and all amounts payable by the Borrowers
hereunder shall be determined as if such Lender had not sold such
participation.

     (b) Notwithstanding the foregoing, any Lender (or any Lender together with
one or more other Lenders) may (x) assign all or a portion of its Term Loan
Commitment (and related outstanding Obligations hereunder) and/or its Revolving
Loan Commitment (and related outstandings obligations hereunder) to (i)(A) its
parent company and/or any affiliate of such Lender which is at least 50% owned
by such Lender or its parent company or (B) to one or more other Lenders or any
affiliate of any such other Lender which is at least 50% owned by such other
Lender or its parent company (provided that any fund that invests in loans and
is managed or advised by the same investment advisor of another fund which is a
Lender (or by an Affiliate of such investment advisor) shall be treated as an
affiliate of such other Lender for the purposes of this sub-clause (x)(i)(B)),
or (ii) in the case of any Lender that is a fund that invests in loans, any
other fund that invests in loans and is managed or advised by the same
investment advisor of such Lender or by an Affiliate of such investment
advisor, or (y) assign all, or if less than all, a portion equal to at least
$1,000,000 in the aggregate for the assigning Lender or assigning Lenders
(provided that, in the case of an assignment pursuant to this clause (y) at a
time when no Specified Default or Event of Default exists, to the extent that
the assignor Lender is to retain a Commitment after giving effect to such
assignment, such Commitment shall be in an amount

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equal to at least $1,000,000), of such Commitment or Commitments and/or
outstanding Obligations hereunder to one or more Eligible Transferees, each of
which assignees shall become a party to this Agreement as a Lender by execution
of an Assignment and Assumption Agreement, provided that (i) at such time
Schedule I shall be deemed modified to reflect the Commitments of such new
Lender and of the existing Lenders, (ii) upon the surrender of the Note or
Notes by the assigning Lender (or, upon such assigning Lender’s indemnifying
the Borrowers for any lost Note pursuant to a customary indemnification
agreement) new Notes will be issued, at the Borrowers’ expense, to such new
Lender and to the assigning Lender upon the request of such new Lender or
assigning Lender, such new Notes to be in conformity with the requirements of
Section 1.06 (with appropriate modifications) to the extent needed to reflect
the revised Commitments and/or outstanding Loans, (iii) the written consent of
the Administrative Agent and, unless a Default or an Event of Default then
exists, the Borrowers (each of which consents shall not be unreasonably
withheld or delayed) shall be required in connection with any assignment to an
Eligible Transferee pursuant to clause (y) above, (iv) the Administrative Agent
shall receive at the time of each such assignment, from the assigning or
assignee Lender, the payment of a non-refundable assignment fee of $3,500, and
(v) promptly after such assignment, the Borrowers shall have received from the
Administrative Agent notice of any such assignment and of the identity,
nationality and applicable lending office of any such Eligible Transferee that
is not a United States person (as defined in Section 7701(a)(30) of the Code),
together with the copy of the Assignment and Assumption Agreement relating
thereto and, provided further, that such transfer or assignment will not be
effective until recorded by the Administrative Agent on the Register pursuant
to Section 13.15. To the extent of any assignment pursuant to this Section
13.04(b), the assigning Lender shall be relieved of its obligations hereunder
with respect to its assigned Commitments and/or outstanding Loans. At the time
of each assignment pursuant to this Section 13.04(b) to a Person which is not
already a Lender hereunder and which is not a United States person (as such
term is defined in Section 7701(a)(30) of the Code) for Federal income tax
purposes, the respective assignee Lender shall, to the extent legally entitled
to do so, provide to the Borrowers the appropriate Internal Revenue Service
Forms (and, if applicable, a Section 4.04(b)(ii) Certificate) described in
Section 4.04(b). To the extent that an assignment of all or any portion of a
Lender’s Commitments and related outstanding Obligations pursuant to Section
1.15 or this Section 13.04(b) would, at the time of such assignment, result in
increased costs under Section 1.11 or 4.04 in excess of those being charged by
the respective assigning Lender prior to such assignment, then the Borrowers
shall not be obligated to pay such excess increased costs (although the
Borrowers, in accordance with and pursuant to the other provisions of this
Agreement, shall be obligated to pay the costs which are not in excess of those
being charged by the respective assigning Lender prior to such assignment and
any subsequent increased costs of the type described above resulting from
changes after the date of the respective assignment). Notwithstanding anything
to the contrary contained herein, any Lender (a “Granting Lender”) may grant to
a special purpose funding vehicle (“SPC”), identified as such in writing from
time to time by the Granting Lender to the Administrative Agent and the
Borrowers, the option to provide to the Borrowers all or any part of any Loan
that such Granting Lender would otherwise be obligated to
 make to the Borrowers
pursuant to this Agreement, provided that (i) such Granting Lender’s
obligations under this Agreement (including, without limitation, its Commitment
hereunder) shall remain unchanged, (ii) such Granting Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) the Borrowers, the Administrative Agent and the other
Lenders shall continue to deal solely and

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directly with such Granting Lender in connection with such Granting Lender’s
rights and obligations under this Agreement, (iv) no SPC shall have any right
to approve any amendment or waiver of any provision of this Agreement or any
Note, or any consent to any departure by the Borrowers therefrom, except to the
extent that such amendment, waiver or consent would reduce the principal of, or
interest on, the Loans or any fees or other amounts payable hereunder, in each
case to the extent subject to such grant of funding option, or postpone any
date fixed for any payment of principal of, or interest on, the Loans or any
fees or other amounts payable hereunder, in each case to the extent subject to
such grant of funding option, (v) nothing herein shall constitute a commitment
by any SPC to make any Loan and (vi) if an SPC elects not to exercise such
option or otherwise fails to provide all or any of such Loan, the Granting
Lender shall be obligated to make such Loan pursuant to the terms hereof. The
making of a Loan by an SPC hereunder shall utilize the applicable Commitment of
the Granting Lender to the same extent and as if such Loan were made by such
Granting Lender. Each party hereto hereby agrees that no SPC shall be liable
for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the Granting Lender). In furtherance of
the foregoing, each party hereto hereby agrees (which agreement shall survive
the termination of this Agreement) that, prior to the date that is one year and
one day after the payment in full of all outstanding commercial paper or other
senior indebtedness of any SPC, it will not institute against, or join any
other person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof. In addition, notwithstanding anything to the
contrary contained in this Section 13.04(b), any SPC may (i) with notice to,
but without the prior written consent of, the Borrowers and the Administrative
Agent and without paying any processing fee therefor, assign all or a portion
of its interests in any Loans to the Granting Lender or to any financial
institutions (consented to by the Administrative Agent and, unless a Default or
an Event of Default exists, the Borrowers (which consent shall not be
unreasonably withheld or delayed)) providing liquidity and/or credit support to
or for the account of such SPC to support the funding or maintenance of Loans
and (ii) disclose on a confidential basis consistent with the restrictions set
forth in Section 13.16 any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC.

     (c) Nothing in this Agreement shall prevent or prohibit any Lender from
pledging its Loans and Notes hereunder to a Federal Reserve Bank in support of
borrowings made by such Lender from such Federal Reserve Bank and, with prior
notice to the Administrative Agent, any Lender which is a fund may pledge all
or any portion of its Notes or Loans to its trustee or to a collateral agent
providing credit or credit support to such Lender in support of its obligations
to its trustee or such collateral agent, as the case may be. No pledge pursuant
to this clause (c) shall release the transferor Lender from any of its
obligations hereunder.

     13.05 No Waiver; Remedies Cumulative. No failure or delay on the part of
the Administrative Agent or any Lender in exercising any right, power or
privilege hereunder or under any other Credit Document and no course of dealing
between any Credit Party and the Administrative Agent or any Lender shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, power or privilege hereunder or under any other Credit Document preclude
any other or further exercise thereof or the exercise of any other right, power
or

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privilege hereunder or thereunder. The rights, powers and remedies herein or in
any other Credit Document expressly provided are cumulative and not exclusive
of any rights, powers or remedies which the Administrative Agent or any Lender
would otherwise have. No notice to or demand on any Credit Party in any case
shall entitle such Credit Party to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent or any Lender to any other or further action in any
circumstances without notice or demand.

     13.06 Payments Pro Rata. (a) Except as otherwise provided in this
Agreement, the Administrative Agent agrees that promptly after its receipt of
each payment from or on behalf of the Borrowers in respect of any Obligations
hereunder, it shall distribute such payment to the Lenders (other than any
Lender that has consented in writing to waive its pro rata share of any such
payment) pro rata based upon their respective shares, if any, of the
Obligations with respect to which such payment was received.

     (b) Each of the Lenders agrees that, if it should receive any amount
hereunder (whether by voluntary payment, by realization upon security, by the
exercise of the right of setoff or banker’s lien, by counterclaim or cross
action, by the enforcement of any right under the Credit Documents, or
otherwise, except as a result of Sections 1.15 or 13.04), which is applicable
to the payment of the principal of, or interest on, the Loans, Unpaid Drawings
or Fees, of a sum which with respect to the related sum or sums received by
other Lenders is in a greater proportion than the total of such Obligation then
owed and due to such Lender bears to the total of such Obligation then owed and
due to all of the Lenders immediately prior to such receipt, then such Lender
receiving such excess payment shall purchase for cash without recourse or
warranty from the other Lenders an interest in the Obligations of the Borrowers
to such Lenders in such amount as shall result in a proportional participation
by all the Lenders in such amount; provided that if all or any portion of such
excess amount is thereafter recovered from such Lender, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but
without interest.

     (c) Notwithstanding anything to the contrary contained herein, the
provisions of the preceding Sections 13.06(a) and (b) shall be subject to the
express provisions of this Agreement which require, or permit, differing
payments to be made (i) to the various Tranches hereunder and (ii) to
Non-Defaulting Lenders as opposed to Defaulting Lenders.

     13.07 Calculations; Computations. (a) The financial statements to be
furnished to the Lenders pursuant hereto shall be made and prepared in
accordance with GAAP, consistently applied throughout the periods involved
(except as set forth in the notes thereto or as otherwise disclosed in writing
by the Borrowers to the Lenders and except, in the case of interim financial
statements, for normal year-end adjustments); provided that except as otherwise
specifically provided herein, all computations determining the Borrowers’
compliance with Section 9 and the definition of Applicable Margin and all other
defined financial terms relating to the Borrowers shall utilize accounting
principles and policies in the United States in conformity with those used to
prepare the historical financial statements described in Section 7.05(a); and
provided further that the financial covenants set forth in Sections 8.11 and
9.10-9.14 shall assume that Trizec owns 100% of the Equity Interests in
Holdings (if Holdings is converted

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into the Additional Borrower) or in any other Additional Borrower if formed as
long as the requirements of Section 8.04(b) continue to be satisfied with
respect to the Additional Borrower.

     (b) All computations of interest and Fees hereunder shall be made on the
basis of a year of 360 days for the actual number of days (including the first
day but excluding the last day, except in the case of Letters of Credit Fees
and Facing Fees, the last day shall be included) occurring in the period for
which such interest or Fees are payable; provided that all computations of
interest on Base Rate Loans determined by reference to the Prime Lending Rate
shall be based on the actual number of days elapsed over a year of 365 days (or
366 days, as the case maybe).

     13.08 Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury
Trial. (A) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. THE
PARTIES ACKNOWLEDGE THAT NEW YORK HAS A SUBSTANTIAL RELATIONSHIP TO THE
UNDERLYING TRANSACTIONS RELATED TO THIS AGREEMENT AND TO THE PARTIES INVOLVED.

     ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK IN EACH CASE WHICH ARE
LOCATED IN THE COUNTY OF NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH CREDIT PARTY HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
AFORESAID COURTS. EACH CREDIT PARTY HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM
THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER IT, AND AGREES NOT TO
PLEAD OR CLAIM, IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED
COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION OVER IT. EACH CREDIT PARTY
FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH CREDIT PARTY
AT ITS ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME
EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH CREDIT PARTY HEREBY IRREVOCABLY
WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES
AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED
HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY
WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST ANY CREDIT PARTY IN ANY OTHER JURISDIC-

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TION INCLUDING IN ANY STATE IN WHICH ANY BORROWING BASE PROPERTY IS SITUATED.

     (B) EACH CREDIT PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR
PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND
HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH
COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

     (C) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     13.09 Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A set of counterparts
executed by all the parties hereto shall be lodged with the Borrowers and the
Administrative Agent.

     13.10 Effectiveness. This Agreement shall become effective on the date
(the “Effective Date”) on which (i) the Borrowers, the Administrative Agent and
the Lenders shall have signed a counterpart hereof (whether the same or
different counterparts) and shall have delivered the same to the Administrative
Agent at the Notice Office or, in the case of the Lenders, shall have given to
the Administrative Agent telephonic (confirmed in writing), written or telex
notice (actually received) at such office that the same has been signed and
mailed to it and (ii) the conditions contained in Section 5 are met to the
satisfaction of the Administrative Agent and the Lenders. Unless the
Administrative Agent has received actual notice from any Lender that the
conditions described in clause (ii) of the preceding sentence have not been met
to its satisfaction, upon the satisfaction of the condition described in clause
(i) of the immediately preceding sentence and upon the Administrative Agent’s
good faith determination that the conditions described in clause (ii) of the
immediately preceding sentence have been met, then the Effective Date shall
have been deemed to have occurred, regardless of any subsequent determination
that one or more of the conditions thereto had not been met (although the
occurrence of the Effective Date shall not release the Borrowers from any
liability for failure to satisfy one or more of the applicable conditions
contained in Section 5). The Administrative Agent shall give the Borrowers and
each Lender prompt written notice of the occurrence of the Effective Date.

     13.11 Headings Descriptive. The headings of the several sections and
subsections of this Agreement are inserted for convenience only and shall not
in any way affect the meaning or construction of any provision of this
Agreement.

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     13.12 Amendment or Waiver; etc. (a) Neither this Agreement nor any
other Credit Document nor any terms hereof or thereof may be changed, waived,
discharged or terminated unless such change, waiver, discharge or termination
is in writing signed by the Borrowers and the Required Lenders, provided that
no such change, waiver, discharge or termination shall, without the consent of
each Lender (other than a Defaulting Lender) (with Obligations being directly
modified in the case of the following clause (i)), (i) extend the final
scheduled maturity of any Loan or Note or extend the stated expiration date of
any Letter of Credit beyond the Maturity Date, or reduce the rate or extend the
time of payment of interest or Fees thereon (except in connection with the
waiver of applicability of any post-default increase in interest rates), or
reduce the principal amount thereof (it being understood that any amendment or
modification to the financial definitions in this Agreement or to Section
13.07(a) shall not constitute a reduction in the rate or interest or Fees for
the purposes of this clause (i)), (ii) release all or substantially all of the
Subsidiary Guarantors from their respective obligations under the Subsidiaries
Guaranty (except, in each case, as expressly permitted by the Credit
Documents), (iii) amend, modify or waive any provision of this Section 13.12
(except for technical amendments with respect to additional extensions of
credit pursuant to this Agreement which afford the protections to such
additional extensions of credit of the type provided to the Commitments on the
Effective Date), (iv) amend the definition of Required Lenders (it being
understood that, with the consent of the Required Lenders, additional
extensions of credit pursuant to this Agreement may be included in the
determination of the Required Lenders on substantially the same basis as the
extensions of Term Loans and Revolving Loans are included on the Effective
Date) or (v) consent to the assignment or transfer by any of the Borrowers of
any of its rights and obligations under this Agreement; provided further, that
no such change, waiver, discharge or termination shall (1) amend, modify or
waive any condition precedent set forth in Section 6 with respect to the making
of (x) Term Loans, without the consent of the Majority Lenders holding Term
Loan Commitments or (y) Revolving Loans, Swingline Loans, Competitive Bid Loans
or the issuance of Letters of Credit, without the written consent of the
Majority Lenders holding Revolving Loan Commitments, (2) increase the
Commitment of any Lender over the amount thereof then in effect without the
consent of such Lender (it being understood that waivers or modifications of
conditions precedent, covenants, Defaults or Events of Default or of a
mandatory reduction in the Total Commitment shall not constitute an increase of
the Commitment of any Lender, and that an increase in the available portion of
any Commitment of any Lender shall not constitute an increase of the Commitment
of such Lender), (3) without the consent of the Swingline Lender, alter the
Swingline Lender’s rights or obligations with respect to Swingline Loans, (4)
without the consent of each Issuing Lender, amend, modify or waive any
provision of Section 2 or alter its rights or obligations with respect to
Letters of Credit, (5) without the consent of the Administrative Agent, amend,
modify or waive any provision of Section 12 or any other provision as same
relates to the rights or obligations of the Administrative Agent, or (6)
without the consent of the Majority Lenders of the respective Tranche effected
thereby, amend the definition of Majority Lenders (it being understood that,
with the consent of the Required Lenders, additional extensions of credit
pursuant to this Agreement may be included in the determination of the Majority
Lenders on substantially the same basis as the extensions of Loans and
Commitments are included on the Effective Date).

     (b) If, in connection with any proposed change, waiver, discharge or
termination to any of the provisions of this Agreement as contemplated by
clauses (i) through (v), inclusive, of the first proviso to Section 13.12(a),
the consent of the Required Lenders is

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obtained but the consent of one or more of such other Lenders whose consent is
required is not obtained, then the Borrowers shall have the right, so long as
all non-consenting Lenders whose individual consent is required are treated as
described in either clause (A) or (B) below, to either (A) replace each such
non-consenting Lender or Lenders with one or more Replacement Lenders pursuant
to Section 1.15 so long as at the time of such replacement, each such
Replacement Lender consents to the proposed change, waiver, discharge or
termination or (B) terminate such non-consenting Lender’s Commitments and/or
repay all outstanding Loans of such Lender in accordance with Sections 3.02(b)
and/or 4.01(b), provided that, unless the Commitments that are terminated, and
Loans repaid, pursuant to preceding clause (B) are immediately replaced in full
at such time through the addition of new Lenders or the increase of the
Commitments and/or outstanding Loans of existing Lenders (who in each case must
specifically consent thereto), then in the case of any action pursuant to
preceding clause (B) the Required Lenders (determined after giving effect to
the proposed action) shall specifically consent thereto; provided further, that
in any event the Borrowers shall not have the right to replace a Lender or
repay its Loans solely as a result of the exercise of such Lender’s rights (and
the withholding of any required consent by such Lender) pursuant to the second
proviso to Section 13.12(a).

     13.13 Survival. All indemnities set forth herein including, without
limitation, in Sections 1.11, 1.12, 2.06, 4.04, 12.06 and 13.01 shall survive
the execution, delivery and termination of this Agreement and the Notes and the
making and repayment of the Obligations.

     13.14 Domicile of Loans. Each Lender may transfer and carry its Loans at,
to or for the account of any office, Subsidiary or Affiliate of such Lender.
Notwithstanding anything to the contrary contained herein, to the extent that a
transfer of Loans pursuant to this Section 13.14 would, at the time of such
transfer, result in increased costs under Sections 1.11, 1.12, 2.06 or 4.04 in
excess of those being charged by the respective Lender prior to such transfer,
then the Borrowers shall not be obligated to pay such excess increased costs
(although the Borrowers, in accordance with and pursuant to the other
provisions of this Agreement, shall be jointly and severally obligated to pay
the costs which would apply in the absence of such designation and any
subsequent increased costs of the type described above resulting from changes
after the date of the respective transfer).

     13.15 Register. The Borrowers hereby designate the Administrative Agent
to serve as the Borrowers’ agent, solely for purposes of this Section 13.15, to
maintain a register (the “Register”) on which it will record the Loans made by
each of the Lenders and each repayment in respect of the principal amount of
the Loans of each Lender. Failure to make any such recordation, or any error in
such recordation shall not affect the Borrowers’ obligations in respect of such
Loans. With respect to any Lender, the transfer of the Commitment of such
Lender and the rights to the principal of, and interest on, any Loan made
pursuant to this Agreement shall not be effective until such transfer is
recorded on the Register maintained by the Administrative Agent with respect to
ownership of such Commitment and Loans and prior to such recordation all
amounts owing to the transferor with respect to such Loans shall remain owing
to the transferor. The registration of assignment or transfer of all or part of
any Loans shall be recorded by the Administrative Agent on the Register only
upon the acceptance by the Administrative Agent of a properly executed and
delivered Assignment and Assumption Agreement pursuant to Section 13.04(b).
Coincident with the delivery of such an Assignment and Assumption Agreement to
the Administrative Agent for acceptance and registration of

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assignment or transfer of all or part of a Commitment and any related Loan, or
as soon thereafter as practicable, the assigning or transferor Lender shall
surrender the Note evidencing such Loan, and thereupon one or more new Notes in
the same aggregate principal amount shall be issued to the assigning or
transferor Lender and/or the new Lender at the request of such Lender. The
Borrowers jointly and severally agree to indemnify the Administrative Agent
from and against any and all losses, claims, damages and liabilities of
whatsoever nature which may be imposed on, asserted against or incurred by the
Administrative Agent in performing its duties under this Section 13.15,
provided that the Borrowers shall have no obligation to indemnify the
Administrative Agent for any loss, claim, damage, liability or expense to the
extent that same resulted from the gross negligence or willful misconduct of
the Administrative Agent (as determined by a court of competent jurisdiction in
a final and non-appealable decision).

     13.16 Confidentiality. Each Lender agrees that it will (x) use its
reasonable efforts not to disclose without the prior consent of the Borrowers
(other than to its affiliates and to its or its affiliates’ respective
employees, officers, auditors, examiners, advisors or counsel or to another
Lender if the Lender or such Lender’s holding or parent company in its
reasonable good faith discretion determines that any such party should have
access to such information, provided such Persons shall be subject to the
provisions of this Section 13.16 to the same extent as such Lender) any
non-public information with respect to any of the Credit Parties or any of
their respective Subsidiaries which is now or in the future furnished pursuant
to this Agreement or any other Credit Document by any of the Borrowers and (y)
use any such non-public information (A) for purposes relating to this
Agreement, the other Credit Documents or any of the transactions contemplated
hereby or thereby (including, without limitation, in connection with (i) the
evaluation, administration, monitoring or enforcement of any of the Credit
Documents or the Obligations or (ii) satisfying or cooperating in any Person’s
regulatory or other compliance requirements) or (B) in connection with other
services at the request or for the benefit of the Borrowers and their
respective Subsidiaries, provided that any Lender may disclose any such
information (a) as has become generally available to the public, (b) as may be
required or appropriate in any report, statement or testimony submitted to any
municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such Lender or to the Federal Reserve Board or the Federal
Deposit Insurance Corporation or similar organizations (whether in the United
States or elsewhere) or their successors, (c) as may be required or appropriate
in respect of any summons or subpoena or in connection with any litigation, (d)
in order to comply with any law, order, regulation or ruling applicable to such
Lender, (e) to the Administrative Agent or any other Lender and (f) to any
prospective or actual transferee or participant in connection with any
contemplated transfer or participation of any of the Notes or Commitments or
any interest therein by such Lender, provided that such prospective transferee
shall be subject to the provisions of this Section 13.16.

     13.17 Limitation on Additional Amounts, etc. Notwithstanding anything to
the contrary contained in Section 1.11, 1.12, 2.06 or 4.04, unless a Lender
gives notice to the Borrowers that they are obligated to pay an amount under
the respective Section within 180 days after the later of (x) the date the
Lender incurs the respective increased costs, loss, expense or liability,
reduction in amounts received or receivable or reduction in return on capital
or (y) the date such Lender has actual knowledge of its incurrence of the
respective increased costs, loss, expense or liability, reductions in amounts
received or receivable or reduction in return on capital, then such Lender
shall only be entitled to be compensated for such amount by the

-116-

 

Borrowers pursuant to said Sections 1.11, 1.12, 2.06 or 4.04, as the case may
be, to the extent the costs, loss, expense or liability, reduction in amounts
received or receivable or reduction in return on capital are incurred or
suffered on or after the date which occurs 180 days prior to such Lender giving
notice to the Borrowers that it is obligated to pay the respective amounts
pursuant to said Sections 1.11, 1.12, 2.06, or 4.04, as the case may be;
provided, however, that if the circumstances giving rise to such claims have a
retroactive effect, such 180-day period shall be extended to include the period
of such retroactive effect. This Section 13.17 shall have no applicability to
any Section of this Agreement other than said Sections 1.11, 1.12, 2.06 or
4.04.

     13.18 No Third Party Beneficiary. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective permitted successors and assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

     13.19 Waiver of Sovereign Immunity. To the extent that any Credit Party
has or hereafter may acquire any immunity from jurisdiction of any court or
from any legal process (whether through service or notice, attachment prior to
judgment, attachment in aid of execution, or otherwise) with respect to itself
or its property, such Credit Party hereby irrevocably waives such immunity in
respect of its obligations hereunder to the extent permitted by applicable law
and, without limiting the generality of the foregoing, agrees that the waivers
set forth in this Section 13.19 shall have the fullest extent permitted under
the Foreign Sovereign Immunities Act of 1976 of the United States and are
intended to be irrevocable for purposes of such Act.

     13.20 Judgment Currency. (a) The Credit Parties’ obligations hereunder
and under the other Credit Documents to make payments in Dollars (the
“Obligation Currency”) shall not be discharged or satisfied by any tender or
recovery pursuant to any judgment expressed in or converted into any currency
other than the Obligation Currency, except to the extent that such tender or
recovery results in the effective receipt by the Administrative Agent or the
respective Lender of the full amount of the Obligation Currency expressed to be
payable to the Administrative Agent or such Lender under this Agreement or the
other Credit Documents. If for the purpose of obtaining or enforcing judgment
against any Credit Party in any court or in any jurisdiction, it becomes
necessary to convert into or from any currency other than the Obligation
Currency (such other currency being hereinafter referred to as the “Judgment
Currency”) an amount due in the Obligation Currency, the conversion shall be
made at the rate of exchange (as quoted by the Administrative Agent in good
faith or if the Administrative Agent does not quote a rate of exchange on such
currency, by a known dealer in such currency designated by the Administrative
Agent) determined, in each case, as of the day on which the judgment is given
(such Business Day being hereinafter referred to as the “Judgment Currency
Conversion Date”).

     (b) If there is a change in the rate of exchange prevailing between the
Judgment Currency Conversion Date and the date of actual payment of the amount
due, the Borrowers covenant and jointly and severally agree to pay, or cause to
be paid, such additional amounts, if any (but in any event not a lesser
amount), as may be necessary to ensure that the amount paid in the Judgment
Currency, when converted at the rate of exchange prevailing on the date of
payment, will produce the amount of the Obligation Currency which could have
been

-117-

 

purchased with the amount of Judgment Currency stipulated in the judgment or
judicial award at the rate of exchange prevailing on the Judgment Currency
Conversion Date.

     (c) For purposes of determining any rate of exchange for this Section
13.20, such amounts shall include any premium and costs payable in connection
with the purchase of the Obligation Currency.

     13.21 Maximum Rate. Notwithstanding anything to the contrary contained
elsewhere in this Agreement or in any other Credit Document, the Borrowers, the
Administrative Agent and the Lenders hereby agree that all agreements among
them under this Agreement and the other Credit Documents, whether now existing
or hereafter arising and whether written or oral, are expressly limited so that
in no contingency or event whatsoever shall the amount paid, or agreed to be
paid, to the Administrative Agent or any Lender for the use, forbearance, or
detention of the money loaned to the Borrowers and evidenced hereby or thereby
or for the performance or payment of any covenant or obligation contained
herein or therein, exceed the Highest Lawful Rate. If due to any circumstance
whatsoever, fulfillment of any provisions of this Agreement or any of the other
Credit Documents at the time performance of such provision shall be due shall
exceed the Highest Lawful Rate, then, automatically, the obligation to be
fulfilled shall be modified or reduced to the extent necessary to limit such
interest to the Highest Lawful Rate, and if from any such circumstance any
Lender should ever receive anything of value deemed interest by applicable law
which would exceed the Highest Lawful Rate, such excessive interest shall be
applied to the reduction of the principal amount then outstanding hereunder or
on account of any other then outstanding Obligations and not to the payment of
interest, or if such excessive interest exceeds the principal unpaid balance
then outstanding hereunder and such other then outstanding Obligations, such
excess shall be refunded to the Borrowers. All sums paid or agreed to be paid
to the Administrative Agent or any Lender for the use, forbearance, or
detention of the Obligations and other Indebtedness of the Borrowers to the
Administrative Agent or any Lender shall, to the extent permitted by applicable
law, be amortized, prorated, allocated and spread throughout the full term of
such Indebtedness until payment in full so that the actual rate of interest on
account of all such Indebtedness does not exceed the Highest Lawful Rate
throughout the entire term of such Indebtedness. The terms and provisions of
this Section 13.21 shall control every other provision of this Agreement and
all agreements among the Borrowers, the Administrative Agent and the Lenders.

     13.22 Nature of Obligations. (a) Notwithstanding anything to the
contrary contained elsewhere in this Agreement, it is understood and agreed by
the parties to this Agreement that all Obligations to repay principal of,
interest on, and all other amounts with respect to, all Term Loans, Revolving
Loans, Swingline Loans and Letter of Credit Outstandings and all other
Obligations pursuant to this Agreement and under any Note (including, without
limitation, all fees, indemnities, taxes and other Obligations in connection
therewith or in connection with the related Commitments) shall constitute the
joint and several obligations of the Borrowers. In addition to the direct (and
joint and several) obligations of the Borrowers with respect to Obligations as
described above, all such Obligations shall be guaranteed pursuant to, and in
accordance with the terms of, the Subsidiaries Guaranty.

     (b) The obligations of each of the Borrowers with respect to the
Obligations are independent of the obligations of the other Borrowers or any
guarantor, and a separate action

-118-

 

or actions may be brought and prosecuted against any of the Borrowers, whether
or not any of the other Borrowers or any guarantor is joined in any such action
or actions. Any payment by any of the Borrowers or other circumstance which
operates to toll any statute of limitations as to any of the Borrowers shall,
to the fullest extent permitted by law, operate to toll the statute of
limitations as to the other Borrowers.

           (c) Each of the Borrowers authorizes the Administrative Agent and the
Lenders without notice or demand (except as shall be required by applicable
statute and cannot be waived), and without affecting or impairing its liability
hereunder, from time to time to:

     (i) exercise or refrain from exercising any rights against any of
the other Borrowers or any guarantor or others or otherwise act or
refrain from acting;

     (ii) release or substitute any of the other Borrowers, endorsers,
guarantors or other obligors;

     (iii) settle or compromise any of the Obligations of any of the
other Borrowers or any other Credit Party, any security therefor or any
liability (including any of those hereunder) incurred directly or
indirectly in respect thereof or hereof, and may subordinate the payment
of all or any part thereof to the payment of any liability (whether due
or not) of any of the Borrowers to its creditors other than the Lenders;

     (iv) apply any sums paid by any of the other Borrowers or any other
Person, howsoever realized to any liability or liabilities of such other
Borrowers or other Person regardless of what liability or liabilities of
such other Borrower or other Person remain unpaid; and/or

     (v) consent to or waive any breach of, or act, omission or default
under, this Agreement or any of the instruments or agreements referred to
herein, or otherwise, by any of the other Borrowers or any other Person.

           (d) It is not necessary for the Administrative Agent or any other Lender
to inquire into the capacity or powers of any of the Borrowers or any of their
respective Subsidiaries or the officers, directors, members, partners or agents
acting or purporting to act on its behalf, and any Obligations made or created
in reliance upon the professed exercise of such powers shall constitute the
joint and several obligations of the Borrowers hereunder.

           (e) None of the Borrowers shall have any rights of contribution or
subrogation with respect to any of the other Borrowers as a result of payments
made by it hereunder, in each case unless and until the Total Commitment has
been terminated and all Obligations have been paid in full.

           (f) Each of the Borrowers waives any right to require the Administrative
Agent or the other Lenders to (i) proceed against the other Borrower, any
guarantor or any other party, (ii) proceed against or exhaust any security held
from any of the Borrowers, any guarantor or any other Person or (iii) pursue
any other remedy in the Administrative Agent’s or the Lenders’ power
whatsoever. Each of the Borrowers waives any defense based on or arising out of
suretyship or any impairment of security held from any of the Borrowers, any
guarantor or

-119-

 

any other Person or on or arising out of any defense of any of the other
Borrowers, any guarantor or any other Person other than payment in full in cash
of the Obligations, including, without limitation, any defense based on or
arising out of the disability of any of the other Borrowers, any guarantor or
any other Person, or the unenforceability of the Obligations or any part
thereof from any cause, or the cessation from any cause of the liability of any
of the other Borrowers, in each case other than as a result of the payment in
full in cash of the Obligations.

     13.23 USA Patriot Act. Each Lender hereby notifies the Borrowers that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”), it may be required to
obtain, verify and record information that identifies the Borrowers and the
Credit Parties and their respective Subsidiaries, which information includes
the name and address of such Persons and other information that will allow such
Lender to identify such Persons in accordance with the Act, and the Borrowers
agree to provide such information from time to time to any Lender.

*    *     *

-120-

 

     IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
officers to execute and deliver this Agreement as of the date first above
written.

Address:

Trizec Properties, Inc.

233 South Wacker Drive, Suite 4600
 Chicago, Illinois 60606

Telephone: (312) 382-7626

Facsimile: (312) 466-0185

Attention: Jeffrey Echt

Trizec Properties, Inc.

233 South Wacker Drive, Suite 4600
 Chicago, Illinois 60606

Telephone: (312) 382-7626

Facsimile: (312) 466-0185

Attention: Jeffrey Echt

	 	 	 
	TRIZEC PROPERTIES,
INC.,
as Borrower
	 
	 	 
	By:
	 	 /s/ Jeffrey
D. Echt
	

	 	

	

	 	Title: Senior Vice President
	 
	 	 
	TRIZEC HOLDINGS,
INC.,
as Borrower
	 
	 	 
	By:

	 	 /s/ Jeffrey
D. Echt
	

	 	

	

	 	Title: Senior Vice President
	 
	 	 
	DEUTSCHE BANK TRUST COMPANY
AMERICAS,

    Individually and as Administrative Agent
	 
	 	 
	By:
	 	 George
R. Reynolds
	

	 	

	

	 	Title:Vice President
	 
	 	 
	BANK OF AMERICA, N.A.
	 
	 	 
	By:
	 	 /s/ Mark
W. Lariviere
	

	 	

	

	 	Title: Managing Director

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, 

Individually and as Co-Documentation Agents

 	 
	 	By:  	/s/ Neil J. Crawford
 	 
	 	 	Name:  	Neil J. Crawford 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SCOTIABANC, INC.,

 as a Lender

 	 
	 	By:  	/s/ P.J. Hawes
 	 
	 	 	Name:  	P.J. Hawes 	 
	 	 	Title:  	Comptroller 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF MONTREAL,

Individually and as Co-Documentation Agents

 	 
	 	By:  	/s/ Thomas A. Batterham
 	 
	 	 	Name:  	Thomas A. Batterham 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK,

Individually and as Co-Documentation Agents

 	 
	 	By:  	/s/ Marc E. Costantino
 	 
	 	 	Name:  	Marc E. Costantino 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ING REAL ESTATE FINANCE (USA) LLC,

Individually and as Senior Managing Agent

 	 
	 	By:  	/s/ David Mazujian
 	 
	 	 	Name:  	David Mazujian 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Mark Neibch
 	 
	 	 	Name:  	Mark Neibch 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	KEY BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Rana Augustine
 	 
	 	 	Name:  	Rana Augustine 	 
	 	 	Title:  	Assistant Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	COMMERZBANK AG NEW YORK AND

GRAND CAYMAN BRANCHES,

as a Lender

 	 
	 	By:  	/s/ Douglas Traynor
 	 
	 	 	Name:  	Douglas Traynor 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Christian Berry
 	 
	 	 	Name:  	Christian Berry 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	EUROHYPO AG, NEW YORK BRANCH,

as a Lender

 	 
	 	By:  	/s/ Ben J. Marciano
 	 
	 	 	Name:  	Ben J. Marciano 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Andrew Cherrick
 	 
	 	 	Name:  	Andrew Cherrick 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	LASALLE BANK NATIONAL ASSOCIATION, 

as a Lender

 	 
	 	By:  	/s/ A. Brad Feine
 	 
	 	 	Name:  	A. Brad Feine 	 
	 	 	Title:  	Commercial Banking Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	US BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Renee M. Lewis
 	 
	 	 	Name:  	Renee M. Lewis 	 
	 	 	Title:  	Assistant Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ David Blackman
 	 
	 	 	Name:  	David Blackman 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	NATIONAL AUSTRALIA BANK LIMITED,

(A.B.N. 12 004 044 937)

as a Lender

 	 
	 	By:  	/s/ Thomas S. Matesich
 	 
	 	 	Name:  	Thomas S. Matesich 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Zachary K. Ellis
 	 
	 	 	Name:  	Zachary K. Ellis 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as a Lender

 	 
	 	By:  	/s/ Rick Laudisi
 	 
	 	 	Name:  	Rick Laudisi 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MIDFIRST BANK, A FEDERALLY

CHARTERED SAVINGS ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Todd Wright
 	 
	 	 	Name:  	Todd Wright 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SOVEREIGN BANK,

 as a Lender

 	 
	 	By:  	/s/ T. Gregory Donohue
 	 
	 	 	Name:  	T. Gregory Donohue 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ALLIED IRISH BANK, P.L.C., 

as a Lender

 	 
	 	By:  	/s/ Ronald K. Rapp
 	 
	 	 	Name:  	Ronald K. Rapp 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Kathryn E. Murdoch
 	 
	 	 	Name:  	Kathryn E. Murdoch 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, 

as a Lender

 	 
	 	By:  	/s/ Daniel Twenge
 	 
	 	 	Name:  	Daniel Twenge 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A., 

as a Lender

 	 
	 	By:  	/s/ David B. Murphy
 	 
	 	 	Name:  	David B. Murphy 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	COMERICA BANK,

as a Lender

 	 
	 	By:  	/s/ James  Graycheck
 	 
	 	 	Name:  	James  Graycheck 	 
	 	 	Title:  	Assistant Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	FIRST HORIZON BANK, a division of 

FIRST TENNESSEE BANK N.A.

as a Lender

 	 
	 	By:  	/s/ J. Jordan O'Neill, III
 	 
	 	 	Name:  	J. Jordan O'Neill, III 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ERSTE BANK, NEW YORK BRANCH, 

as a Lender

 	 
	 	By:  	/s/ Gregory T. Aptman
 	 
	 	 	Name:  	Gregory T. Aptman 	 
	 	 	Title: Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Bryan Lynch
 	 
	 	 	Name:  	Bryan Lynch 	 
	 	 	Title:  	First Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITIZENS BANK OF RHODE ISLAND, 

as a Lender

 	 
	 	By:  	/s/ Craig E. Schermerhorn
 	 
	 	 	Name:  	Craig E. Schermerhorn 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY, 

as a Lender

 	 
	 	By:  	/s/ R. W. Wiarda
 	 
	 	 	Name:  	R. W. Wiarda 	 
	 	 	Title:  	Vice President

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