Document:

exv10w14

 

Exhibit 10.14

CONFIDENTIAL
PORTIONS MARKED [*******] HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

November 27, 2007

Archstone-Smith Operating Trust and its affiliates

identified on the signature pages hereto

Ladies and Gentlemen:

     Reference is made to (i) the side letter, dated as of October 5, 2007, executed by the
undersigned lender and borrower entities party hereto (the “Flex Side Letter”) and (ii) the
Commitment Letter, dated as of November 8, 2007 (the “Commitment Letter”), among
Archstone-Smith Operating Trust (the “ASOT Borrower”), Lehman Brothers Inc., Lehman
Commercial Paper Inc., Banc of America Securities LLC, Bank of America, N.A. and Barclays Capital
Real Estate Inc. Each capitalized term used and not otherwise defined herein shall have the
meaning given to such term in the Flex Side Letter.

     The parties hereto hereby agree to amend the Flex Side Letter and to the other terms and
conditions set forth herein.

     1. Tranche
A Term Loans. (a)  The amount “************” referenced in Paragraph 1 of
the Flex Side Letter is hereby deleted and shall be replaced with the
amount “*************”.

          (b) The second sentence of Section 1 is hereby deleted in its entirety and replaced with the
following: “Any discount realized by such Tranche A Term Loan Lenders from any sale, assignment or
transfer of the Tranche A Term Loans to any person (other than to an affiliate of such Tranche A
Term Loan Lender except for any sale, assignment or transfer to affiliates on the same terms, at
the same price and in similar aggregate amounts as such Loans have been sold in comparable
third-party transactions) shall be borne by the relevant Borrower and shall be paid from sources of
funds described in Paragraph 9.”

     2. Tranche B Term Loans. The third sentence of Section 2 is hereby deleted in its
entirety and replaced with the following: “Any discount realized by such Tranche B Term Loan
Lenders from any sale, assignment or transfer of any Tranche B Loan to any person (other than to an
affiliate of such Tranche B Term Loan Lender except for any sale, assignment or transfer to
affiliates on the same terms, at the same price and in similar aggregate amounts as such Loans have
been sold in comparable third-party transactions) shall be borne by the applicable Borrower and
shall be paid from sources of funds described in Paragraph 9.”

     3. Development Loans. The third sentence of Section 3 is hereby deleted in its
entirety and replaced with the following: “Any discount realized by Development Lenders from any
sale, assignment or transfer of any Development Loan to any person (other than to an affiliate of
such Development Lender except for any sale, assignment or transfer to affiliates on the same
terms, at the same price and in similar aggregate amounts as such Loans have been sold

 

 

2

in comparable third-party transactions) shall be borne by the applicable Borrower and shall be
paid from sources of funds described in Paragraph 9.”

     4. Revolving Credit Commitments. The third sentence of Section 4 is hereby deleted in
its entirety and replaced with the following: “Any discount realized by such Revolving Credit
Lenders from any sale, assignment or transfer of any Revolving Credit Commitments to any person
(other than to an affiliate of such Revolving Credit Lenders except for any sale, assignment or
transfer to affiliates on the same terms, at the same price and in similar aggregate amounts as
such Loans have been sold in comparable third-party transactions) shall be borne by the applicable
Borrower and shall be paid from sources of funds described in Paragraph 9.”

     5. Mezzanine Loans. The third sentence of Section 5 is hereby deleted in its entirety
and replaced with the following: “Any discount realized by Mezzanine Lenders from any sale,
assignment or transfer of any Mezzanine Loan to any person (other than to an affiliate of such
Mezzanine Lenders except for any sale, assignment or transfer to affiliates on the same terms, at
the same price and in similar aggregate amounts as such Loans have been sold in comparable
third-party transactions) shall be borne by the applicable Borrower and shall be paid from sources
of funds described in Paragraph 9.”

     6. Ground Lease Loan. The third sentence of Section 6 is hereby deleted in its
entirety and replaced with the following: “Any discount realized by Ground Lease Lenders from any
sale, assignment or transfer of any Ground Lease Loan to any person (other than to an affiliate of
such Ground Lease Lender except for any sale, assignment or transfer to affiliates on the same
terms, at the same price and in similar aggregate amounts as such Loans have been sold in
comparable third-party transactions) shall be borne by the applicable Borrower and shall be paid
from sources of funds described in Paragraph 9.”

     7. Reserves.

A. Pursuant to the Commitment Letter, the Lead Banks (as defined in the Commitment Letter)
committed to provide the amount of $149,000,000 (the “Committed Amount”) of the
Additional Term Loan Facilities (as defined in the Commitment Letter) to fund Syndication
Costs (as defined in the Commitment Letter). The Committed Amount is being provided by the
Lenders as contemplated by Paragraph 9(a) of the Flex Side Letter following negotiation with
the ASOT Borrower and the parties’ mutual agreement upon the source of funds to enable the
ASOT Borrower to make the payments referred to in clause (x) of Paragraph 9(a) of the Flex
Side Letter. In the event that the aggregate amount of required payments by the ASOT
Borrower to the Lenders of Syndication Costs pursuant to the Flex Side Letter exceeds the
sum of
*************************************************************************************
*************************************************************************************
******** then the Lenders and the ASOT Borrower will remain obligated to negotiate with each
other to ascertain a source of funds to pay such excess Syndication Costs (the “Excess
Syndication Costs”). Notwithstanding the foregoing, and for the avoidance of doubt,
(i) the ASOT Borrower hereby acknowledges and agrees that the Lenders’ commitment to provide
the Committed Amount does not constitute a course of dealing and does not

 

 

3

otherwise create any express or implied commitment to fund additional loans to pay such
Excess Syndication Costs and (ii) each party hereto hereby acknowledges and agrees that none
of the other parties hereto, by their acceptance of this letter agreement, waive any of
their respective rights under the Flex Side Letter.

B. The Borrowers hereby agree that the Additional Tranche B Term Loans (as defined in the
Commitment Letter) committed to be provided by the Lead Banks (as defined in the Commitment
Letter) to fund the ASOT PS Purchase (as defined in the Commitment Letter) satisfies the
agreement of the Lenders under Paragraph 9(a) of the Flex Side Letter to negotiate with the
ASOT Borrower so as to agree upon the a source of funds to enable the ASOT Borrower to make
the payments referred to in clause (y) of Paragraph 9(a) of the Flex Side Letter.

     8. Defined Terms.

A. References to the “Loans” in the Flex Side Letter shall mean any of the Tranche A Term
Loans, the Tranche B Term Loans, the loans made under the Revolving Credit Facility, the
“Mezzanine Loans” (as defined in Exhibit A to the Flex Side Letter), the Development Loans
and the Ground Lease Loans, as applicable. For the avoidance of doubt, (a) any reference to
the Tranche A Term Loans, the Tranche B Term Loans, Revolving Credit Facility, the Mezzanine
Loans, the Development Loans and the Ground Lease Loans, as applicable, in the Flex Side
Letter shall include any other tranches of loans, componentized notes, senior and
subordinated loans or other types of financings such Loans have been restructured into with
the approval of the applicable Borrower in accordance with Paragraph 8 of the Flex Side
Letter and (b) in connection with any such restructuring of any Loan, references in the Flex
Side Letter to the Tranche A Term Loan Lenders, the Tranche B Term Loan Lenders, the
Revolving Credit Lenders, the Development Lenders, the Mezzanine Lenders and the Ground
Lease Lenders shall also include any additional Lenders for such restructured Loan.

B. References to the “Borrower” or the “Borrowers” in the Flex Side Letter shall mean any of
the ASOT Borrower, the Mezzanine Borrowers, the Development Borrower and the Ground Lease
Borrower, as applicable.

     9. Scrivener’s Error. The parties hereto acknowledge and agree that Property Asset
Management Inc. being a party to the Flex Side Letter, the Structuring Fee Letter, dated as of May
28, 2007, and the Underwriting Fee Letter was a scrivener’s error and the correct party to such
documents and this amendment is Real Estate Private Equity Inc.

     Notwithstanding anything appearing to the contrary in this letter, neither the Administrative
Agent nor any Lender shall be entitled to enforce the liability and obligation of the undersigned
to pay, perform and observe the obligations contained in this letter by any action or proceeding
against any member, shareholder, partner, manager, director, officer, agent, affiliate,
beneficiary, trustee or employee of the undersigned (or any direct or indirect member, shareholder,
partner or other owner of any such member, shareholder, partner, manager, director, officer, agent,
affiliate or employee of the undersigned , or any director, officer, employee, agent, manager or
trustee of any of the foregoing); provided that, nothing in this paragraph shall have

 

 

4

the effect of exculpating from liability an entity that is itself an undersigned entity.

     This letter may be executed in any number of counterparts, all of which taken together shall
constitute one and the same agreement, and any of the parties hereto may execute this letter by
signing any such counterpart. Delivery of an executed signature page of this letter by facsimile
transmission shall be effective as delivery of a manually executed counterpart hereof.

     This letter shall be governed by, and constructed in accordance with, the laws of the State of
New York.

     The parties hereto hereby waive any right to a trial by jury in any proceeding arising from
this letter or the transactions contemplated hereby.

[Remainder of page intentionally left blank.]

 

 

     Please confirm that the foregoing is our mutual understanding by signing an executed
counterpart of this letter.

	 	 	 	 	 
	 	Very truly yours,

SENIOR LENDERS/DEVELOPMENT LENDERS:

LEHMAN COMMERCIAL PAPER INC., 

   as Senior Lender and Development Lender

 	 
	 	By:  	/s/ Francis X. Gilhool
 	 
	 	 	Name:  	Francis X. Gilhool 	 
	 	 	Title:  	Authorized Signatory 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., 

   as Senior Lender and Development Lender

 	 
	 	By:  	/s/ Lesa Butler
 	 
	 	 	Name:  	Lesa Butler 	 
	 	 	Title:  	SVP 	 

	 	 	 	 	 
	 	BARCLAYS CAPITAL REAL ESTATE INC., 

   as Senior Lender and
Development Lender

 	 
	 	By:  	/s/ LoriAnn Rung
 	 
	 	 	Name:  	LoriAnn Rung 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	GROUND LEASE LENDERS:

LEHMAN BROTHERS HOLDINGS INC., 

   a Delaware corporation

 	 
	 	By:  	/s/ Charlene Thomas
 	 
	 	 	Name:  	Charlene Thomas 	 
	 	 	Title:  	Authorized Signatory 	 

[Signature Page to Amendment to Flex Loan Side Letter]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., 

   a national banking association

 	 
	 	By:  	/s/ Lesa Butler
 	 
	 	 	Name:  	Lesa Butler 	 
	 	 	Title:  	SVP 	 

	 	 	 	 	 
	 	BARCLAYS CAPITAL REAL ESTATE INC., 

   a Delaware
corporation

 	 
	 	By:  	/s/ LoriAnn Rung
 	 
	 	 	Name:  	LoriAnn Rung 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	MEZZANINE LENDERS:

LEHMAN BROTHERS HOLDINGS INC., 

   a Delaware corporation

 	 
	 	By:  	/s/ Charlene Thomas
 	 
	 	 	Name:  	Charlene Thomas  	 
	 	 	Title:  	Authorized Signator 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

   a national banking association

 	 
	 	By:  	/s/ Lesa Butler
 	 
	 	 	Name:  	Lesa Butler 	 
	 	 	Title:  	SVP 	 

	 	 	 	 	 
	 	BARCLAYS CAPITAL REAL ESTATE FINANCE INC.,

   a Delaware corporation

 	 
	 	By:  	/s/ LoriAnn Rung
 	 
	 	 	Name:  	LoriAnn Rung 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Amendment to Flex Loan Side Letter]

 

 

	 	 	 	 	 
	 	UNDERWRITING FEE LETTER PARTIES:

LEHMAN COMMERCIAL PAPER INC., 

   as party to Underwriting Fee Letter

 	 
	 	By:  	/s/ Francis X. Gilhool
 	 
	 	 	Name:  	Francis X. Gilhool 	 
	 	 	Title:  	Authorized Signatory 	 

	 	 	 	 	 
	 	LEHMAN BROTHERS INC., 

   as party to Underwriting Fee Letter

 	 
	 	By:  	/s/ Francis X. Gilhool
 	 
	 	 	Name:  	Francis X. Gilhool 	 
	 	 	Title:  	Authorized Signatory 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., 

   as party to Underwriting Fee Letter

 	 
	 	By:  	/s/ Lesa Butler
 	 
	 	 	Name:  	Lesa Butler 	 
	 	 	Title:  	SVP 	 

	 	 	 	 	 
	 	BANC OF AMERICA SECURITIES LLC,

   as party to Underwriting Fee Letter

 	 
	 	By:  	/s/ Mark D. Monte
 	 
	 	 	Name:  	Mark D. Monte 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Page to Amendment to Flex Loan Side Letter]

 

 

	 	 	 	 	 
	ACCEPTED AND AGREED TO	 	 
	AS THE DATE FIRST ABOVE WRITTEN:	 	 
	 
	 	 	 	 
	ASOT:	 	 
	 
	 	 	 	 
	ARCHSTONE-SMITH OPERATING TRUST	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jim Rosenthal	 	 
	 

	 	 	 	 
	 

	 	Name: Jim Rosenthal	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	UNDERWRITING FEE
LETTER PARTIES:	 	 
	 
	 	 	 	 
	REAL ESTATE PRIVATE EQUITY INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Coburn Packard
 

Name: Coburn Packard
	 	 
	 

	 	Title:   SVP	 	
	 
	 	 	 	 
	TISHMAN SPEYER DEVELOPMENT CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jim Rosenthal
 

Name: Jim Rosenthal
	 	 
	 

	 	Title:	 	 

[Signature Page to Amendment to Flex Loan Side Letter]

 

 

	 	 	 	 	 	 	 
	DEVELOPMENT BORROWER	 	 
	 
	 	 	 	 	 	 
	TISHMAN SPEYER ARCHSTONE-SMITH
MULTIFAMILY HOLDINGS I (DEVELOPMENT
BORROWER), L.P.	 	 
	 
	 	 	 	 	 	 
	By:	 	Tishman Speyer Archstone-Smith Multifamily
Holdings I (Development Borrower) GP, L.L.C.,
its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jim Rosenthal
 

Name: Jim Rosenthal
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Amendment to Flex Loan Side Letter]

 

 

	 	 	 	 	 
	GROUND LEASE BORROWERS:	 	 
	 
	 	 	 	 
	TISHMAN SPEYER ARCHSTONE-SMITH
FAIRFAX, L.L.C.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jim Rosenthal
 

Name: Jim Rosenthal
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	TISHMAN SPEYER ARCHSTONE-SMITH
MARINA TERRACE, L.L.C.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jim Rosenthal
 

Name: Jim Rosenthal
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	TISHMAN SPEYER ARCHSTONE-SMITH
ONE SUPERIOR PLACE, L.L.C.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jim Rosenthal
 

Name: Jim Rosenthal
	 	 
	 

	 	Title:	 	 

[Signature Page to Amendment to Flex Loan Side Letter]exv10w15

 

Exhibit 10.15

EXECUTION VERSION

 

 

$750,000,000

CREDIT AGREEMENT

(AFFILIATE BORROWER I-A)

among

TISHMAN SPEYER ARCHSTONE-SMITH MULTIFAMILY HOLDINGS I (BORROWER-A), L.P.,

as Borrower,

and

ARCHSTONE-SMITH OPERATING TRUST,

as Lender

Dated as of October 5, 2007

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 
	 	 	 	 
	SECTION 1 DEFINITIONS	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.1	 	 	Defined Terms
	 	 	1	 
	 	1.2	 	 	Other Definitional Provisions
	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	SECTION 2 AMOUNT AND TERMS OF REVOLVING CREDIT COMMITMENT	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	 	2.1	 	 	[Intentionally Omitted]
	 	 	22	 
	 	2.2	 	 	[Intentionally Omitted]
	 	 	22	 
	 	2.3	 	 	[Intentionally Omitted]
	 	 	22	 
	 	2.4	 	 	Revolving Credit Commitment
	 	 	22	 
	 	2.5	 	 	Procedure for Revolving Credit Borrowing
	 	 	22	 
	 	2.6	 	 	[Intentionally Omitted]
	 	 	23	 
	 	2.7	 	 	[Intentionally Omitted]
	 	 	23	 
	 	2.8	 	 	Repayment of Loans; Evidence of Debt
	 	 	23	 
	 	2.9	 	 	Commitment Fees, etc
	 	 	23	 
	 	2.10	 	 	Termination or Reduction of Revolving Credit Commitment
	 	 	23	 
	 	2.11	 	 	Optional Prepayments
	 	 	24	 
	 	2.12	 	 	[Intentionally Omitted]
	 	 	24	 
	 	2.13	 	 	Conversion and Continuation Options
	 	 	24	 
	 	2.14	 	 	Minimum Amounts and Maximum Number of Eurodollar Tranches
	 	 	24	 
	 	2.15	 	 	Interest Rates and Interest Payment Dates
	 	 	25	 
	 	2.16	 	 	Computation of Interest and Fees
	 	 	25	 
	 	2.17	 	 	Inability to Determine Interest Rate
	 	 	26	 
	 	2.18	 	 	Payments
	 	 	26	 
	 	2.19	 	 	Requirements of Law
	 	 	27	 
	 	2.20	 	 	Taxes
	 	 	28	 
	 	2.21	 	 	Indemnity
	 	 	29	 
	 	2.22	 	 	Illegality
	 	 	30	 
	 	2.23	 	 	[Intentionally Omitted]
	 	 	30	 
	 	2.24	 	 	[Intentionally Omitted]
	 	 	30	 
	 	2.25	 	 	[Intentionally Omitted]
	 	 	30	 
	 	2.26	 	 	[Intentionally Omitted]
	 	 	30	 
	 	2.27	 	 	Exculpation
	 	 	30	 
	 	 	 	 	 
	 	 	 	 
	SECTION 3 LETTERS OF CREDIT	 	 	32	 
	 	 	 	 	 
	 	 	 	 
	 	3.1	 	 	L/C Commitment
	 	 	32	 
	 	3.2	 	 	Procedure for Issuance of Letter of Credit
	 	 	33	 
	 	3.3	 	 	Fees and Other Charges
	 	 	33	 
	 	3.4	 	 	[Intentionally Omitted]
	 	 	33	 
	 	3.5	 	 	Reimbursement Obligation of the Borrower
	 	 	34	 
	 	3.6	 	 	[Intentionally Omitted]
	 	 	34	 
	 	3.7	 	 	Obligations Absolute
	 	 	34	 

-i- 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 
	 	 	 	 
	 	3.8	 	 	Letter of Credit Payments
	 	 	34	 
	 	3.9	 	 	Applications
	 	 	35	 
	 	 	 	 	 
	 	 	 	 
	SECTION 4 REPRESENTATIONS AND WARRANTIES	 	 	35	 
	 	 	 	 	 
	 	 	 	 
	 	4.1	 	 	[Intentionally Omitted]
	 	 	35	 
	 	4.2	 	 	No Change
	 	 	35	 
	 	4.3	 	 	Corporate Existence; Compliance with Law
	 	 	35	 
	 	4.4	 	 	Corporate Power; Authorization; Enforceable Obligations
	 	 	35	 
	 	4.5	 	 	No Legal Bar
	 	 	36	 
	 	4.6	 	 	No Material Litigation
	 	 	36	 
	 	4.7	 	 	No Default
	 	 	36	 
	 	4.8	 	 	Ownership of Property; Liens
	 	 	36	 
	 	4.9	 	 	Intellectual Property
	 	 	36	 
	 	4.10	 	 	Taxes
	 	 	36	 
	 	4.11	 	 	Federal Regulations
	 	 	37	 
	 	4.12	 	 	Labor Matters
	 	 	37	 
	 	4.13	 	 	ERISA
	 	 	37	 
	 	4.14	 	 	Investment Company Act; Other Regulations
	 	 	37	 
	 	4.15	 	 	Subsidiaries
	 	 	38	 
	 	4.16	 	 	Use of Proceeds
	 	 	38	 
	 	4.17	 	 	Environmental Matters
	 	 	38	 
	 	4.18	 	 	Accuracy of Information, etc
	 	 	39	 
	 	4.19	 	 	Security Documents
	 	 	39	 
	 	4.20	 	 	Solvency
	 	 	40	 
	 	4.21	 	 	Regulation H
	 	 	40	 
	 	 	 	 	 
	 	 	 	 
	SECTION 5 CONDITIONS PRECEDENT	 	 	40	 
	 	 	 	 	 
	 	 	 	 
	 	5.1	 	 	Conditions to Initial Extension of Credit
	 	 	40	 
	 	5.2	 	 	Conditions to Each Extension of Credit
	 	 	42	 
	 	 	 	 	 
	 	 	 	 
	SECTION 6 AFFIRMATIVE COVENANTS	 	 	43	 
	 	 	 	 	 
	 	 	 	 
	 	6.1	 	 	[Intentionally Omitted]
	 	 	43	 
	 	6.2	 	 	Certificates; Other Information
	 	 	43	 
	 	6.3	 	 	Payment of Obligations
	 	 	44	 
	 	6.4	 	 	Conduct of Business and Maintenance of Existence; Compliance
	 	 	44	 
	 	6.5	 	 	Maintenance of Property; Insurance
	 	 	44	 
	 	6.6	 	 	Inspection of Property; Books and Records; Discussions
	 	 	44	 
	 	6.7	 	 	Notices
	 	 	44	 
	 	6.8	 	 	Environmental Laws
	 	 	45	 
	 	6.9	 	 	[Intentionally Omitted]
	 	 	46	 
	 	6.10	 	 	Additional Collateral, etc
	 	 	46	 
	 	6.11	 	 	Further Assurances
	 	 	47	 
	 	6.12	 	 	Post-Closing Covenants
	 	 	48	 
	 	6.13	 	 	[Intentionally Omitted]
	 	 	48	 
	 	6.14	 	 	[Intentionally Omitted]
	 	 	48	 
	 	6.15	 	 	[Intentionally Omitted]
	 	 	48	 

-ii- 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 
	 	 	 	 
	 	6.16	 	 	[Intentionally Omitted]
	 	 	48	 
	 	6.17	 	 	Additional Development Properties
	 	 	48	 
	 	 	 	 	 
	 	 	 	 
	SECTION 7 NEGATIVE COVENANTS	 	 	48	 
	 	 	 	 	 
	 	 	 	 
	 	7.1	 	 	[Intentionally Omitted]
	 	 	48	 
	 	7.2	 	 	Limitation on Indebtedness
	 	 	48	 
	 	7.3	 	 	Limitation on Liens
	 	 	52	 
	 	7.4	 	 	Limitation on Fundamental Changes
	 	 	54	 
	 	7.5	 	 	Limitation on Disposition of Property
	 	 	55	 
	 	7.6	 	 	Limitation on Restricted Payments
	 	 	56	 
	 	7.7	 	 	Limitation on Maintenance Capital Expenditures and Renovation Capital Expenditures
	 	 	58	 
	 	7.8	 	 	Limitation on Investments
	 	 	59	 
	 	7.9	 	 	[Intentionally Omitted]
	 	 	61	 
	 	7.10	 	 	Limitation on Transactions with Affiliates
	 	 	61	 
	 	7.11	 	 	Limitation on Sales and Leasebacks
	 	 	61	 
	 	7.12	 	 	Limitation on Changes in Fiscal Periods
	 	 	61	 
	 	7.13	 	 	Limitation on Negative Pledge Clauses
	 	 	61	 
	 	7.14	 	 	Limitation on Restrictions on Subsidiary Distributions
	 	 	62	 
	 	7.15	 	 	Limitation on Lines of Business
	 	 	62	 
	 	7.16	 	 	[Intentionally Omitted]
	 	 	62	 
	 	7.17	 	 	Limitation on Amendments to Other Documents
	 	 	62	 
	 	7.18	 	 	[Intentionally Omitted]
	 	 	62	 
	 	7.19	 	 	[Intentionally Omitted]
	 	 	62	 
	 	7.20	 	 	Limitation on Hedge Agreements
	 	 	62	 
	 	 	 	 	 
	 	 	 	 
	SECTION 8 EVENTS OF DEFAULT	 	 	62	 
	 	 	 	 	 
	 	 	 	 
	SECTION 9 [INTENTIONALLY OMITTED]	 	 	66	 
	 	 	 	 	 
	 	 	 	 
	SECTION 10 MISCELLANEOUS	 	 	66	 
	 	 	 	 	 
	 	 	 	 
	 	10.1	 	 	Amendments and Waivers
	 	 	66	 
	 	10.2	 	 	Notices
	 	 	66	 
	 	10.3	 	 	No Waiver; Cumulative Remedies
	 	 	67	 
	 	10.4	 	 	Survival of Representations and Warranties
	 	 	68	 
	 	10.5	 	 	Payment of Expenses
	 	 	68	 
	 	10.6	 	 	Successors and Assigns; Participations and Assignments
	 	 	69	 
	 	10.7	 	 	[Intentionally Omitted]
	 	 	69	 
	 	10.8	 	 	Counterparts
	 	 	69	 
	 	10.9	 	 	Severability
	 	 	69	 
	 	10.10	 	 	Integration
	 	 	69	 
	 	10.11	 	 	Governing Law
	 	 	70	 
	 	10.12	 	 	Submission to Jurisdiction; Waivers
	 	 	70	 
	 	10.13	 	 	Acknowledgments
	 	 	70	 
	 	10.14	 	 	Confidentiality
	 	 	71	 
	 	10.15	 	 	Release of Collateral and Guarantee Obligations
	 	 	71	 
	 	10.16	 	 	[Intentionally Omitted]
	 	 	71	 
	 	10.17	 	 	[Intentionally Omitted]
	 	 	71	 
	 	10.18	 	 	Waivers of Jury Trial
	 	 	72	 
	 	10.19	 	 	Exculpation
	 	 	72	 

-iii- 

 

SCHEDULES:

	1.1A 	 	[Intentionally Omitted]
	 
	1.1B 	 	Real Property
	 
	1.1C 	 	[Intentionally Omitted]
	 
	1.1D 	 	Property Owners
	 
	4.15	 	Subsidiaries
	 
	4.19	 	Uniform Commercial Code Filing Jurisdictions
	 
	7.2(d) 	 	Existing Indebtedness
	 
	7.3(f) 	 	Existing Liens

EXHIBITS:

	A 	 	Form of Guarantee and Collateral Agreement
	 
	B 	 	Form of Compliance Certificate
	 
	C 	 	Form of Closing Certificate
	 
	D 	 	[Intentionally Omitted]
	 
	E 	 	[Intentionally Omitted]
	 
	F 	 	[Intentionally Omitted]
	 
	G 	 	[Intentionally Omitted]
	 
	H 	 	[Intentionally Omitted]
	 
	I 	 	[Intentionally Omitted]
	 
	J 	 	Form of Borrowing Notice

-iv- 

 

          CREDIT AGREEMENT (AFFILIATE BORROWER I-A), dated as of October 5, 2007, among TISHMAN SPEYER
ARCHSTONE-SMITH MULTIFAMILY HOLDINGS I (BORROWER-A), L.P., a Delaware limited partnership (the
“Borrower”), and ARCHSTONE-SMITH OPERATING TRUST, a Maryland real estate investment trust
(the “Lender”).

WITNESSETH:

          WHEREAS, Tishman Speyer Archstone-Smith Multifamily Holdings I (Development Borrower), L.P., a
Delaware corporation and a wholly-owned subsidiary of the Borrower (the “Development
Subsidiary-A”) desires to purchase from Archstone-Smith Trust, a Maryland real estate
investment trust (the “Company”) and the Company will sell to the Development Subsidiary-A
(the “Development Asset Acquisition”), those real estate assets and equity interests
specified in the purchase agreement, dated as of the date hereof, between the Development
Subsidiary-A and the Company (as amended, supplemented or otherwise modified from time to time, the
“Development Asset Purchase Agreement”); and

          WHEREAS, the Borrower has requested the Lender make available a revolving credit loan facility
to provide for the general corporate needs of the Borrower and its Subsidiaries, including, without
limitation, the ongoing development and construction costs related to the real property purchased
by the Development Subsidiary-A pursuant to the Development Asset Acquisition and any additional
real property acquired by the Borrower and its subsidiaries hereafter; and

          WHEREAS, the Lender is willing to make such credit facility available upon and subject to the
terms and conditions hereinafter set forth;

          NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, the
parties hereto hereby agree as follows:

SECTION 1. DEFINITIONS

          1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1 shall
have the respective meanings set forth in this Section 1.1.

          “Additional Fund”: each “Fund” that is the direct or indirect parent of an ASOT
Additional Parent Guarantor.

          “Administration Fee”: on any date of determination, an amount equal to the
“Administration Fee” due and payable by the Combined Group Members to the Funds pursuant to Section
6.14 of their respective Fund Agreements on such date, as applicable.

          “Administration Fee Agreement”: the Administration Fee Agreement, by and among the
Funds, to the extent applicable, in favor of the ASOT Administrative Agent, to be

 

2

entered into
pursuant to Section 6.12(b), as amended, supplemented or otherwise modified from time to time in
accordance with this Agreement.

          “Affiliate”: as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with such Person. For purposes of this
definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10%
or more of the securities having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b) direct or cause the direction of the management
and policies of such Person, whether by contract or otherwise.

          “Affiliate Borrower I-B”: Tishman Speyer Archstone-Smith Multifamily Holdings I
(Borrower-B), L.P., a Delaware limited partnership.

          “Affiliate Borrower I-B Credit Agreement”: the Credit Agreement (Affiliate Borrower
I-B), dated as of the date hereof, among the Affiliate Borrower I-B, as borrower, and Secured Note
LLC, as lender, as amended, supplemented or otherwise modified from time to time in accordance with
this Agreement.

          “Affiliate Borrower I-B GP”: Tishman Speyer Archstone-Smith Multifamily Holding I
(Borrower-B) GP, L.L.C., a Delaware limited liability company.

          “Affiliate Borrower I-B Loan Documents”: the “Loan Documents” as defined in the
Affiliate Borrower I-B Credit Agreement.

          “Affiliate Borrower I-B Parent”: Tishman Speyer Archstone-Smith Multifamily Holding I
(Parent Borrower-B), L.P., a Delaware limited partnership.

          “Affiliate Borrower I-B Parent Credit Agreement”: the Credit Agreement (Parent
Borrower I-B), dated as of the date hereof, among the Affiliate Borrower I-B Parent, as borrower,
and the ASOT Borrower, as lender, as amended, supplemented or otherwise modified from time to time.

          “Affiliate Borrower I-B Parent Loan Documents”: the “Loan Documents” as defined in
the Affiliate Borrower I-B Parent Credit Agreement.

          “Affiliate Borrower II”: Tishman Speyer Archstone-Smith Multifamily Holdings II
(Borrower), L.P., a Delaware limited partnership.

          “Affiliate Borrower II Credit Agreement”: collectively, (i) the Credit Agreement
(Affiliate Borrower II-Term Loan), dated as of October 5, 2007, among the Affiliate Borrower II, as
borrower, and Secured Note LLC, as lender, and (ii) the Credit Agreement (Affiliate Borrower
II-Revolving Credit Loan), dated as of October 5, 2007, among the Affiliate Borrower II, as
borrower, and the Lender, as lender, in each case, as amended, supplemented or otherwise modified
from time to time.

          “Affiliate Borrower II Loan Documents”: the “Loan Documents” as defined in the
Affiliate Borrower II Credit Agreement.

 

3

          “Affiliate Borrower Credit Agreements”: the collective reference to the Affiliate
Borrower I-B Parent Credit Agreement, the Affiliate Borrower II Credit Agreement and the ASOT
Credit Agreement.

          “Affiliate Borrower Group Members”: the collective reference to the ASOT
Parent/Affiliate Guarantors and their respective Subsidiaries (other than the Group Members).

          “Affiliate Borrower Loan Documents”: collectively, the Affiliate Borrower I-B Parent
Loan Documents, the Affiliate Borrower II Loan Documents and the ASOT Loan Documents.

          “Affiliate Borrowers”: collectively, the Affiliate Borrower I-B Parent, the Affiliate
Borrower II and the ASOT Borrower.

          “Affiliate Revolving Notes”: as defined in the ASOT Credit Agreement.

          “Agreement”: this Credit Agreement (Affiliate Borrower I-A), as amended, supplemented
or otherwise modified from time to time.

          “Applicable JV Investment Percentage”: as defined in the ASOT Credit Agreement.

          “Applicable Margin”: as defined in the ASOT Credit Agreement.

          “Application”: an application, in such form as the relevant Issuing Lender may
specify from time to time, requesting such Issuing Lender to issue a Letter of Credit.

          “ASOT Additional Parent Guarantors”: the “Additional Parent Guarantors” as defined in
the ASOT Credit Agreement.

          “ASOT Administrative Agent”: the “Administrative Agent” as defined in the ASOT Credit
Agreement.

          “ASOT Available Revolving Credit Commitment”: the “Available Revolving Credit
Commitment” as defined in the ASOT Credit Agreement.

          “ASOT Borrower”: Archstone-Smith Operating Trust, a Maryland real estate investment
trust.

          “ASOT Credit Agreement”: the Credit Agreement dated as of the date hereof, among the
ASOT Borrower, as borrower, the several banks and other financial institutions or entities from
time to time parties thereto, as lenders, Lehman Brothers Inc. and Banc of America Securities LLC,
as joint lead arrangers and joint bookrunners, Bank of America, N.A., as syndication agent,
Barclays Capital Real Estate Inc., as
documentation agent, the ASOT Administrative Agent, as administrative agent, and others, as
amended, supplemented or otherwise modified from time to time.

 

4

          “ASOT Guarantee and Collateral Agreement”: the “Guarantee and Collateral Agreement”
as defined in the ASOT Credit Agreement.

          “ASOT L/C Commitment”: the “L/C Commitment” as defined in the ASOT Credit Agreement.

          “ASOT L/C Obligations”: the “L/C Obligations” as defined in the ASOT Credit
Agreement.

          “ASOT Lender”: any lender party to the ASOT Credit Agreement.

          “ASOT Loan Default”: a “Default” as defined in the ASOT Credit Agreement.

          “ASOT Loan Event of Default”: an “Event of Default” as defined in the ASOT Credit
Agreement.

          “ASOT Loan Documents”: the “Loan Documents” as defined in the ASOT Credit Agreement.

          “ASOT Majority Facility Lenders”: the “Majority Facility Lenders” as defined in the
ASOT Credit Agreement.

          “ASOT Parent/Affiliate Guarantors”: the “Parent/Affiliate Guarantors” as defined in
the ASOT Credit Agreement.

          “ASOT Required Lenders”: the “Required Lenders” as defined in the ASOT Credit
Agreement.

          “ASOT Revolving Credit Commitment”: the “Revolving Credit Commitment” as defined in
the ASOT Credit Agreement.

          “ASOT Revolving Credit Commitment Period”: the “Revolving Credit Commitment Period”
as defined in the ASOT Credit Agreement.

          “ASOT Revolving Credit Lenders”: the “Revolving Credit Lenders” as defined in the
ASOT Credit Agreement.

          “ASOT Secured Parties”: the “Secured Parties” as defined in the ASOT Guarantee and
Collateral Agreement.

          “ASOT Term Loans”: the “Term Loans” as defined in the ASOT Credit Agreement.

          “ASOT Tranche A Term Loans”: the “Tranche A Term Loans” as defined in the ASOT Credit
Agreement.

          “ASTM”: as defined in Section 5.1(m).

 

5

          “Available Revolving Credit Commitment”: an amount equal to the excess, if any, of
(a) the Revolving Credit Commitment then in effect over (b) the Revolving Extensions of Credit then
outstanding.

          “Base Rate”: for any day, a rate per annum equal to the greater of (a) the Prime Rate
in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1%. For purposes hereof: “Prime Rate” shall mean the prime lending rate as set forth
on the Reuters Screen RTRTSY1 Page (or such other comparable publicly available page as may, in the
reasonable opinion of the Lender in consultation with the ASOT Administrative Agent after notice to
the Borrower, replace such page for the purpose of displaying such rate if such rate no longer
appears on the Reuters Screen RTRTSY1 Page), as in effect from time to time. The Prime Rate is a
reference rate and does not necessarily represent the lowest or best rate actually available. Any
change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall
be effective as of the opening of business on the effective day of such change in the Prime Rate or
the Federal Funds Effective Rate, respectively.

          “Base Rate Loans”: Loans for which the applicable rate of interest is based upon the
Base Rate.

          “Board”: the Board of Governors of the Federal Reserve System of the United States
(or any successor).

          “Borrower”: as defined in the preamble hereto.

          “Borrowing Date”: any Business Day specified by the Borrower as a date on which the
Borrower requests the Lender to make the Loans hereunder.

          “Borrowing Notice”: with respect to any request for borrowing of the Loans hereunder,
a notice from the Borrower, substantially in the form of, and containing the information prescribed
by, Exhibit J, delivered to the Lender.

          “Business Day”: (a) for all purposes other than as covered by clause (b) below, a day
other than a Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to close and (b) with respect to all notices and determinations in
connection with, and payments of principal and interest on, Eurodollar Loans, any day which is a
Business Day described in clause (a) and which is also a day for trading by and between banks in
Dollar deposits in the interbank eurodollar market.

          “CapEx Controlled”: with respect to any Joint Venture directly and indirectly owned
by the Combined Group Members, the ability of the Combined Group Members, directly or indirectly,
to control all decisions relating to Renovation Capital Expenditures without the consent of any
other Person.

          “Capital Expenditures”: for any period, with respect to any Person, the aggregate of
all expenditures by such Person for the acquisition or leasing (pursuant to a capital lease) of
fixed or capital assets (other than Real Property) or additions to equipment (including
replacements, capitalized repairs and improvements during such period) which are required to be
capitalized under GAAP on a balance sheet of such Person. For purposes of this definition, the

 

6

purchase price of equipment or other fixed assets that are purchased simultaneously with the
trade-in of existing assets or with insurance proceeds or proceeds from a casualty event or
condemnation proceeding shall be included in Capital Expenditures only to the extent of the gross
amount by which such purchase price exceeds the credit granted by the seller of such assets for the
assets being traded in at such time or the amount of such insurance proceeds or such casualty event
or condemnation proceeds, as the case may be (but shall at no time be greater than the amount
required by GAAP to be included or reflected by such capital assets on the balance sheet of the
applicable Person).

          “Capital Lease Obligations”: with respect to any Person, the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to
use) real or personal property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such Person under GAAP; and,
for the purposes of this Agreement, the amount of such obligations at any time shall be the
capitalized amount thereof at such time determined in accordance with GAAP.

          “Capital Stock”: any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation) and any and all warrants, rights or options to purchase any
of the foregoing.

          “Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States government or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank
deposits having maturities of one year or less from the date of acquisition issued by any ASOT
Lender or by any commercial bank organized under the laws of the United States of America or any
state thereof having combined capital and surplus of not less than $500,000,000; (c) commercial
paper of an issuer rated at least A-2 by S&P or P-2 by Moody’s, or carrying an equivalent rating by
a nationally recognized rating agency, if both of the two named rating agencies cease publishing
ratings of commercial paper issuers generally, and maturing within one year from the date of
acquisition; (d) repurchase obligations of any ASOT Lender or of any commercial bank satisfying the
requirements of clause (b) of this definition, having a term of not more than 30 days with respect
to securities issued or fully guaranteed or insured by the United States government; (e) securities
with maturities of one year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign government, the securities
of which state, commonwealth, territory, political subdivision, taxing authority or foreign
government (as the case may be) are rated at least A by S&P or A by Moody’s; (f) securities
with maturities of six months or less from the date of acquisition backed by standby letters of
credit issued by any ASOT Lender or any commercial bank satisfying the requirements of clause (b)
of this definition; and (g) shares of money market mutual or similar funds which invest exclusively
in assets satisfying the requirements of clauses (a) through (f) of this definition.

 

7

          “Change of Control”: the occurrence of any of the following events: (a) the
Permitted Investors shall cease to have the power, directly or indirectly, to vote or direct the
voting of securities having a majority of the ordinary voting power for the election of directors
of Guarantor 1 GP, Guarantor 2 GP and the ASOT Additional Parent Guarantors (in each case,
determined on a fully diluted basis); (b) TSREV and its respective Affiliates shall cease to own of
record and beneficially partnership interests of each of Guarantor 1, Guarantor 2 and the ASOT
Additional Parent Guarantors equal to at least 4.9% of the partnership interests of Guarantor 1,
Guarantor 2 and the ASOT Additional Parent Guarantors, taken as a whole; (c) the board of directors
of Guarantor 1 GP, Guarantor 2 GP or any ASOT Additional Parent Guarantor shall cease to consist of
a majority of Continuing Directors; (d) Guarantor 1 GP shall (i) fail to control, directly or
indirectly, the general partner of Guarantor 1 or (ii) fail to control the management and policies
of Guarantor 1; (e) Guarantor 2 GP shall (i) fail to control, directly or indirectly, the managing
member of Guarantor 2 or (ii) fail to control the management and policies of Guarantor 2; (f)
Guarantor 2 and the ASOT Additional Parent Guarantors shall (i) fail to own of record and
beneficially, directly or indirectly, 100% of each class of outstanding Capital Stock of Holdings I
Corp or (ii) fail to control the management and policies of Holdings I Corp; or (g) Holdings I
Corp, Guarantor 1 and the ASOT Additional Parent Guarantors shall (i) fail to control the
management and policies of the Borrower or (ii) cease to own and control, of record and
beneficially, directly or indirectly, 100% of each class of outstanding Capital Stock of the
Borrower.

          “Closing Date”: the date on which the conditions precedent set forth in Section 5.1
shall have been satisfied.

          “Code”: the Internal Revenue Code of 1986, as amended from time to time.

          “Collateral”: all Property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien is purported to be created by any Security Document.

          “Combined Group Members”: as defined in the ASOT Credit Agreement.

          “Commonly Controlled Entity”: an entity, whether or not incorporated, that is under
common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group
that includes the Borrower and that is treated as a single employer under Section 414 of the Code.

          “Company”: as defined in the recitals hereto.

          “Completed Property”: any Operating Property (or phase of an Operating Property) that
is Construction-in-Process until the completion of such Operating Property (or phase thereof) as
evidenced by the issuance of a temporary or permanent certificate of occupancy (whichever occurs
first) for such Operating Property or any phase thereof.

          “Compliance Certificate”: a certificate duly executed by a Responsible Officer, on
behalf of the Borrower substantially in the form of Exhibit B.

          “Construction-in-Process”: on any date of determination, all Real Properties that are
under construction or with respect to which construction is reasonably anticipated to commence
during the period of six full fiscal quarters immediately following such date that are not
Completed Properties.

 

8

          “Construction Related Indebtedness”: Indebtedness incurred to finance construction of
specific Real Estate Under Construction and which is secured by such Real Estate Under
Construction.

          “Continuing Directors”: the directors of Guarantor 1 GP or Guarantor 2 GP, as
applicable, on the Closing Date, after giving effect to the Holdings Merger and the other
transactions contemplated hereby, and each other director of Guarantor 1 GP or Guarantor 2 GP, as
applicable, if, in each case, such other director’s nomination for election to the board of
directors of Guarantor 1 GP or Guarantor 2 GP, as applicable, is recommended by at least a majority
of the then Continuing Directors or such other director receives the vote of the Permitted
Investors in his or her election by the shareholders of Guarantor 1 GP or Guarantor 2 GP, as
applicable.

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

          “Cure Period”: as defined in the ASOT Credit Agreement.

          “Default”: any of the events specified in Section 8, whether or not any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.

          “Derivatives Counterparty”: as defined in Section 7.6.

          “Development Asset Acquisition”: as defined in the recitals.

          “Development Asset Purchase Agreement”: as defined in the recitals.

          “Development Loan Administrative Agent”: the “Administrative Agent” as defined in the
Development Loan Credit Agreement.

          “Development Loan Borrower”: Tishman Speyer Archstone-Smith Multifamily Holding I
(Development Borrower), L.P., a Delaware limited partnership.

          “Development Loan Credit Agreement”: the Credit Agreement (Development Loan), dated
as of the date hereof, among the Development Loan Borrower, as borrower, the several banks and
other financial institutions or entities from time to time parties thereto, as lenders, Lehman
Brothers Inc. and Banc of America Securities LLC, as joint lead arrangers and joint bookrunners,
Bank of America, N.A., as syndication agent, Barclays Capital Real Estate Inc., as documentation
agent, and the Development Loan Administrative Agent, as amended, supplemented or otherwise
modified from time to time in accordance with the terms of the Development Loan Intercreditor
Agreement.

          “Development Loan Intercreditor Agreement”: the Intercreditor Agreement (Development
Loan), dated as of the date hereof, among the Development Loan Administrative Agent and the ASOT
Administrative Agent, as amended, supplemented or otherwise modified from time to time.

 

9

          “Development Subsidiary-A”: as defined in the recitals.

          “Development Term Loans”: as defined in the ASOT Credit Agreement.

          “Disposition”: with respect to any Property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof; and the terms “Dispose” and
“Disposed of” shall have correlative meanings.

          “Distributable Affiliate Proceeds”: as defined in the ASOT Credit Agreement.

          “Dollars” and “$”: dollars in lawful currency of the United States of
America.

          “Domestic Subsidiary”: any Subsidiary of the Borrower organized under the laws of any
jurisdiction within the United States of America, any state thereof or the District of Columbia.

          “Eligible Land”: land (and any Improvements thereon) which is zoned or, intended by
the Group Members to be zoned, for use as a residential rental apartment community or a mixed use
community (which includes land zoned for use as a residential rental apartment community).

          “Environmental Laws”: any and all laws, rules, orders, regulations, statutes,
ordinances, guidelines, codes, decrees, agreements or other legally enforceable requirements
(including, without limitation, common law) of any international authority, foreign government, the
United States, or any state, local, municipal or other governmental authority, regulating, relating
to or imposing liability or standards of conduct concerning protection of the environment or of
human health, or employee health and safety, as has been, is now, or may at any time hereafter be,
in effect.

          “Environmental Permits”: any and all permits, licenses, approvals, registrations,
notifications, exemptions and other authorizations required under any Environmental Law.

          “ERISA”: the Employee Retirement Income Security Act of 1974, as amended from time to
time.

          “ESA”: as defined in Section 5.1(m).

          “Eurocurrency Reserve Requirements”: as defined in the ASOT Credit Agreement.

               “Eurodollar Base Rate”: with respect to each day during each Interest Period, the
rate per annum determined on the basis of the rate for deposits in Dollars for a period equal to
such Interest Period commencing on the first day of such Interest Period appearing on the Reuters
Screen LIBOR01 Page as of 11:00 a.m. (London time) two Business Days prior to the beginning of such
Interest Period. In the event that such rate does not appear on the Reuters Screen LIBOR01 Page
(or otherwise on such screen), the “Eurodollar Base Rate” for purposes of this definition
shall be determined by reference to such other comparable publicly available service for displaying
eurodollar rates as may be selected by the Lender in consultation with the ASOT Administrative
Agent.

 

10

          “Eurodollar Loans”: Loans for which the applicable rate of interest is based upon the
Eurodollar Rate.

          “Eurodollar Rate”: with respect to each day during each Interest Period, a rate per
annum determined for such day in accordance with the following formula (rounded upward to the
nearest 1/100th of 1%):

Eurodollar Base Rate

 

1.00 — Eurocurrency Reserve
Requirements

          “Eurodollar Tranche”: the collective reference to Eurodollar Loans the then current
Interest Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).

          “Event of Default”: any of the events specified in Section 8, provided that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

          “Excluded Foreign Subsidiary”: any Foreign Subsidiary in respect of which either (a)
the pledge of all of the Capital Stock of such Subsidiary as Collateral or (b) the guaranteeing by
such Subsidiary of the Obligations, would, in the good faith judgment of the Borrower, result in
adverse tax consequences to the Borrower.

          “Federal Funds Effective Rate”: for any day, 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 on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day
that is a Business Day, the average of the quotations for the day of such transactions received by
the ASOT Administrative Agent from three federal funds brokers of recognized standing selected by
it.

          “Financial Reporting Parties”: as defined in the ASOT Credit Agreement.

          “Foreign Subsidiary”: any Subsidiary of the Borrower that is not a Domestic
Subsidiary.

          “Fund Agreements”: the agreement of limited partnership of each Fund, as in effect on
the date hereof or, in the case of Funds formed after the Closing Date, on the date of such
formation.

          “Funds”: collectively, (i) Tishman Speyer Archstone-Smith Multifamily JV, L.P., a
Delaware limited partnership, (ii) Tishman Speyer Archstone-Smith Multifamily Parallel JV, L.P., a
Delaware limited partnership, (iii) Tishman Speyer Archstone-Smith Multifamily Parallel Fund I JV,
L.P., a Delaware limited partnership, (iv) Tishman Speyer Archstone-Smith Multifamily Parallel Fund
II JV, L.P., a Delaware limited partnership, and (v) each Additional Fund.

 

11

          “GAAP”: generally accepted accounting principles in the United States of America as
in effect from time to time.

          “Governmental Authority”: any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

          “Gross Asset Value”: as defined in the ASOT Credit Agreement.

          “Group Members”: the Borrower and its Subsidiaries.

          “Guarantee and Collateral Agreement”: the Guarantee and Collateral Agreement
(Affiliate Borrower I-A) to be executed and delivered by the Borrower and each Subsidiary
Guarantor, if any, substantially in the form of Exhibit A, as the same may be amended, supplemented
or otherwise modified from time to time.

          “Guarantee Obligation”: as to any Person (the “guaranteeing person”), any
obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing
person that guarantees or in effect guarantees, or which is given to induce the creation of a
separate obligation by another Person (including any bank under any letter of credit) that
guarantees or in effect guarantees any Indebtedness, leases, dividends or other obligations (the
“primary obligations”) of any other third Person (the “primary obligor”) in any
manner, whether directly or indirectly, including, without limitation, any obligation of the
guaranteeing 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 (1) for the purchase or payment of any such primary obligation or (2) to
maintain working capital or equity capital of the primary obligor or otherwise to maintain the net
worth or solvency of the primary obligor, (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 owner of any such primary obligation against loss in respect thereof;
provided, however, that the term “Guarantee Obligation” shall not include
endorsements of instruments for deposit or collection in the ordinary course of business. The
amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of
(a) an amount equal to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing
person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation,
unless such primary obligation and the maximum amount for which such guaranteeing person may be
liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall
be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as
determined by the Borrower in good faith.

          “Guarantor 1”: Tishman Speyer Archstone-Smith Multifamily Guarantor, L.P., a Delaware
limited partnership.

 

12

          “Guarantor 1 GP”: Tishman Speyer Archstone-Smith Multifamily (GP), L.P., a Delaware
limited partnership.

          “Guarantor 2”: Tishman Speyer Archstone-Smith Multifamily Parallel Guarantor, L.L.C.,
a Delaware limited liability company.

          “Guarantor 2 GP”: Tishman Speyer Archstone-Smith Multifamily Parallel (GP), L.P., a
Delaware limited partnership.

          “Hedge Agreements”: all interest rate or currency swaps, caps or collar agreements,
foreign exchange agreements, commodity or currency futures contracts, options to purchase or sell a
commodity or currency, or option, warrant or other right with respect to a commodity or currency
futures contract or similar arrangements entered into by the Borrower or its Subsidiaries providing
for protection against fluctuations in interest rates, currency exchange rates, commodity prices or
the exchange of nominal interest obligations, either generally or under specific contingencies.

          “Holdings I”: Tishman Speyer Archstone-Smith Multifamily Holdings I, L.P., a Delaware
limited partnership.

          “Holdings I Corp”: Tishman Speyer Archstone-Smith Multifamily Holdings I Corp., a
Delaware corporation.

          “Holdings Merger”: as defined in the ASOT Credit Agreement.

          “Improvements”: all buildings, fixtures, structures, parking areas, landscaping and
other improvements whether existing now or hereafter constructed, together with all machinery and
mechanical, electrical, HVAC and plumbing systems presently located thereon and used to the
operation thereof, excluding (a) any such items owned by utility service providers, (b) any such
items owned by tenants or other third parties unaffiliated with the Combined Group Members or their
Subsidiaries and (c) any items of personal property.

          “Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness
of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase
price of Property or third-party services (other than trade payables incurred in the ordinary
course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (d) all indebtedness created or arising under any
conditional sale or other title retention agreement with respect to Property acquired by such
Person (even though the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such Property), (e) all Capital Lease
Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an
account party or applicant under acceptance, letter of credit, surety bond or similar facilities,
(g) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or
otherwise acquire for value any Capital Stock of such Person, (h) all Guarantee Obligations of such
Person in respect of obligations of the kind referred to in clauses (a) through (g) above, (i) all
obligations of others of the kind referred to in clauses (a) through (h) above secured by (or for
which the holder of such obligation has an existing right, contingent or otherwise, to be secured
by) any Lien on Property (including, without limitation, accounts and contract rights)

 

13

owned by
such Person, whether or not such Person has assumed or become liable for the payment of such
obligation, but limited to the lesser of the fair market value of such property and the aggregate
amount of the obligations so secured, and (j) for the purposes of Section 8(e) only, all
obligations of such Person in respect of Hedge Agreements. The “Indebtedness” of any Person shall
include the Indebtedness of any other entity (including any partnership in which such Person is a
general partner) to the extent such Person is liable therefor as a result of such Person’s
ownership interest in or other relationship with such entity, except to the extent the terms of
such Indebtedness expressly provide that such Person is not liable therefor. For purposes of
clause (j) above, the principal amount of Indebtedness in respect of Hedge Agreements shall equal
the amount that would be payable (giving effect to netting) at such time if such Hedge Agreement
were terminated. For the avoidance of doubt, “Indebtedness” as defined hereunder shall not include
(i) prepaid rents or security deposits made under tenant leases or (ii) obligations arising from
agreements of the Borrower or any Subsidiary providing for (1) customary indemnification,
guarantees or adjustments of purchase or acquisition price or similar obligations, in each case,
incurred or assumed in connection with the acquisition or disposition of any business or assets
permitted under this Agreement (except as specified in clause (b) above) or (2) with respect to any
syndication of federal low-income housing tax credits and benefits generated under section 42 of
the Code by apartment projects owned by the Borrower or any Subsidiary, indemnification or
guarantees of obligations to maintain such tax credits and benefits.

          “Indemnified Liabilities”: as defined in Section 10.5.

          “Indemnitee”: as defined in Section 10.5.

          “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

          “Insolvent”: pertaining to a condition of Insolvency.

          “Intellectual Property”: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including, without limitation, copyrights, copyright licenses, patents,
patent licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights
to sue at law or in equity for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.

          “Interest Payment Date”: (a) as to any Base Rate Loan, the last day of each March,
June, September and December to occur while such Loan is outstanding and the final maturity date of
such Loan, (b) as to any Eurodollar Loan having an Interest Period of three months or shorter, the
last day of such Interest Period, (c) as to any Eurodollar Loan having an Interest Period longer
than three months, each day that is three months, or a whole multiple thereof, after the first day
of such Interest Period and the last day of such Interest Period and (d) as to any Loan (other than
any Loan that is a Base Rate Loan), the date of any repayment or prepayment made in respect
thereof.

 

14

          “Interest Period”: as to any Eurodollar Loan, (a) initially, the period commencing on
the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and
ending one, two, three or six months thereafter, as selected by the Borrower in its notice of
borrowing or notice of conversion, as the case may be, given with respect thereto; and (b)
thereafter, each period commencing on the last day of the next preceding Interest Period applicable
to such Eurodollar Loan and ending one, two, three or six months thereafter, as determined by the
Lender in its sole discretion prior to the last day of the then current Interest Period with
respect thereto; provided that, all of the foregoing provisions relating to Interest
Periods are subject to the following:

     (1) if any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless the
result of such extension would be to carry such Interest Period into another calendar month
in which event such Interest Period shall end on the immediately preceding Business Day;

     (2) any Interest Period that would otherwise extend beyond the Revolving Credit
Termination Date shall end on the Revolving Credit Termination Date; and

     (3) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such Interest Period.

          “Investments”: as defined in Section 7.8.

          “Issuing Lender”: any financial institution designated by the Lender as the “Issuing
Lender” hereunder.

          “Joint Venture”: any Person in which the Borrower owns, directly or indirectly,
Capital Stock (other than publicly traded Capital Stock) and which is not a Wholly Owned Subsidiary
of the Borrower.

          “Joint Venture Property”: each parcel of real property owned or leased by any Joint
Venture.

          “L/C Commitment”: as defined in the ASOT Credit Agreement.

          “L/C Fee Payment Date”: the last day of each March, June, September and December and
the last day of the Revolving Credit Commitment Period.

          “L/C Obligations”: at any time, an amount equal to the sum of (a) the aggregate then
undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount
of drawings under Letters of Credit that have not then been reimbursed pursuant to Section 3.5.

          “L/C Participants”: as defined in the ASOT Credit Agreement.

 

15

          “Lender”: as defined in the preamble hereto.

          “Letters of Credit”: as defined in Section 3.1(a).

          “Lien”: any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention agreement and any
capital lease having substantially the same economic effect as any of the foregoing).

          “Limited Guaranty”: the Limited Guaranty (Affiliate Borrower I-A), dated as of the
date hereof, made by Guarantor 1, Guarantor 2 and the ASOT Additional Parent Guarantors in favor of
the Lender.

          “Loan Documents”: this Agreement, the Security Documents, the Applications, the
Administration Fee Agreement, the Limited Guaranty, the Subordination of Limited Guaranty and the
Development Loan Intercreditor Agreement.

          “Loan Parties”: the Borrower and each Subsidiary of the Borrower that is a party to a
Loan Document.

          “Loans”: as defined in Section 2.4.

          “Maintenance Capital Expenditures”: for any period, with respect to any Person, the
Capital Expenditures of such Person for such period that constitute expenditures for recurring
value-retention Capital Expenditures representing costs that are typically incurred on a regular
basis during the life of a community, such as expenditures for carpet, vinyl flooring, appliances,
mechanical equipment, fixtures, roof replacement, parking lot resurfacing, exterior painting and
siding replacement. It is understood and agreed that “Maintenance Capital Expenditures” shall not
include (a) Renovation Capital Expenditures, (b) Capital Expenditures incurred in connection with
requirements under the Fair Housing Act or the Americans with Disabilities Act, (c) Capital
Expenditures representing tenant improvements awarded to any tenant in connection with any
commercial or office lease and (d) repair or restoration of major damage to a community that
resulted from an event such as a fire, flood, hurricane, earthquake or terrorist event.

          “Material Adverse Effect”: a material adverse effect on (a) the business, assets,
property, results of operations or financial condition of the Combined Group Members, taken as a
whole, or (b) the validity or enforceability of this Agreement or any of the other Loan Documents
or the rights or remedies of the Lender hereunder or thereunder; provided that, solely on
the Closing Date and with respect to the representations and warranties to be made by the Loan
Parties on the Closing Date and the closing certificates to be delivered pursuant to Section 5.1(n)
on the Closing Date, “Material Adverse Effect” shall mean a “Material Adverse Effect” as
defined in the Development Asset Purchase Agreement.

          “Material Environmental Amount”: an amount or amounts payable by the Group Members,
in the aggregate in excess of $50,000,000 for: costs to comply with any Environmental Law; costs
of any investigation, and any remediation, of any Material of Environmental Concern; and
compensatory damages (including, without limitation, damages to natural resources), punitive
damages, fines, and penalties pursuant to any Environmental Law.

 

16

          “Materials of Environmental Concern”: any gasoline or petroleum (including crude oil
or any fraction thereof) or petroleum products (virgin or unused), polychlorinated biphenyls,
urea-formaldehyde insulation, asbestos, pollutants, contaminants, radioactivity, and any other
materials, substances or forces of any kind, whether or not any such material, substance or force
is defined as hazardous or toxic under any Environmental Law, that is regulated pursuant to or
could reasonably be expected to give rise to liability under any Environmental Law.

          “Merger Agreement”: as defined in the ASOT Credit Agreement.

          “Moody’s”: Moody’s Investors Service, Inc.

          “Mortgaged Properties”: the real properties as to which the Lender shall be granted a
Lien pursuant to one or more Mortgages at any time and from time to time after the Closing Date
pursuant to Section 6.10(b).

          “Mortgages”: each of the mortgages, deeds of trust and deeds to secure debt made by
any Loan Party in favor of, or for the benefit of, the Lender, in form and substance reasonably
satisfactory to the ASOT Administrative Agent as the same may be amended, supplemented or otherwise
modified from time to time.

          “Multiemployer Plan”: a Plan that is a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

          “Non-Excluded Taxes”: as defined in Section 2.20(a).

          “Non-Recourse Subsidiary Borrower”: a Subsidiary of the Borrower that is a special
purpose entity whose only assets are the assets securing Indebtedness incurred in accordance with
Section 7.2(l).

          “Obligations”: the unpaid principal of and interest on (including, without
limitation, interest accruing after the maturity of the Loans and Reimbursement Obligations and
interest accruing after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the Loans, the Reimbursement
Obligations and all other obligations and liabilities of the Borrower to the Lender, whether direct
or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with, this Agreement, any other Loan Document, the
Letters of Credit or any other document made, delivered or given in connection herewith or
therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses (including, without limitation, all fees, charges and disbursements of counsel to
the Lender that are required to be paid by the Borrower pursuant hereto) or otherwise.

 

17

          “OC/SD JV Holdings LLC”: Tishman Speyer Archstone-Smith OC/SD JV Holdings, L.L.C., a
Delaware limited liability company.

          “Operating Properties”: collectively, the Owned Properties and the Joint Venture
Properties.

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

          “Owned Properties”: each parcel of real property owned or leased by the Group
Members.

          “Ownership Percentage”: with respect to any Operating Property (or any Joint Venture
that owns, directly or indirectly, any Capital Stock of the Property Owner that owns or leases such
Operating Property) at any time, the percentage of the total outstanding Capital Stock of the
Property Owner with respect to such Operating Property held directly and indirectly by the
applicable Person.

          “Payment Amount”: as defined in Section 3.5.

          “Payment Office”: the office specified from time to time by the ASOT Administrative
Agent as its payment office by notice to the Lender, and upon receipt of such notice by the Lender,
the Lender shall promptly notify the Borrower.

          “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA (or any successor).

          “Permitted Investors”: as defined in the ASOT Credit Agreement.

          “Permitted Leases”: leases or subleases (including ground leases and licenses and
other occupancy agreements) entered into the ordinary course of business by any Group Member, in
each case, at an arm’s-length basis (i.e., on market terms) which do not materially impair the
interests of such Group Member in the Property subject thereto or the value of such Property.

          “Person”: an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

          “personal property”: “personal property”, as defined in the Uniform Commercial Code
as from time to time in effect in the State of New York, which is owned by any Group Member.

          “Plan”: at a particular time, any employee benefit plan that is covered by ERISA and
in respect of which the Borrower or a Commonly Controlled Entity is (or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

 

18

          “Pledged Stock”: as defined in the Guarantee and Collateral Agreement.

          “Property”: any right or interest in or to property of any kind whatsoever, whether
real, personal or mixed and whether tangible or intangible, including, without limitation, Capital
Stock.

          “Property Owners”: collectively, Persons identified in Schedule 1.1D attached
hereto, each of which owns the Operating Property identified on such Schedule as being owned by
such Person.

          “Real Estate Under Construction”: Real Property (other than a Completed Property) on
which construction of material improvements has commenced or shall
concurrently commence with the incurrence of Indebtedness financing such construction and is
or shall be continuing to be performed.

          “Real Property”: any present and future right, title and interest (including, without
limitation, any leasehold estate) in (i) any plots, pieces or parcels of Eligible Land, (ii) any
Improvements of every nature whatsoever (the rights and interests described in clauses (i) and (ii)
above being the “Premises”), (iii) all easements, rights of way, gores of land or any lands
occupied by streets, ways, alleys, passages, sewer rights, water courses, water rights and powers,
and public places adjoining such land, and any other interests in property constituting
appurtenances to the Premises, or which hereafter shall in any way belong, relate or be appurtenant
thereto, (iv) all hereditaments, gas, oil, minerals (with the right to extract, sever and remove
such gas, oil and minerals), and easements, of every nature whatsoever, located in, on or
benefiting the Premises and (v) all other rights and privileges thereunto belonging or appertaining
and all extensions, additions, improvements, betterments, renewals, substitutions and replacements
to or of any of the rights and interests described in clauses (iii) and (iv) above.

          “Recourse Indebtedness”: any Indebtedness, to the extent that recourse of the
applicable lender for non-payment is not limited to such lender’s Liens on a particular asset or
group of assets that secure such Indebtedness (except to the extent the Property on which such
lender has a Lien and to which its recourse for non-payment is limited constitutes cash or Cash
Equivalents, to which extent such Indebtedness shall be deemed to be Recourse Indebtedness);
provided that, personal recourse of any Person for any such Indebtedness for fraud,
misrepresentation, misapplication of cash, waste, environmental claims and liabilities, prohibited
transfers, violations of single purpose entity covenants, and other circumstances customarily
excluded by institutional lenders from exculpation provisions and/or included in separate guaranty
or indemnification agreements in non-recourse financing of real estate shall not, by itself, cause
such Indebtedness to be characterized as Recourse Indebtedness.

          “Register”: as defined in Section 2.8(c).

          “Regulation H”: Regulation H of the Board as in effect from time to time.

          “Regulation U”: Regulation U of the Board as in effect from time to time.

 

19

          “Regulation X”: Regulation X of the Board as in effect from time to time.

          “Reimbursement Obligation”: the obligation of the Borrower to reimburse each Issuing
Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit issued by such Issuing
Lender.

          “Renovation Capital Expenditures”: for any period, with respect to any Person, the
Capital Expenditures of such Person for such period comprised of: (a) Capital Expenditures
incurred in connection with a major renovation or reparation of a community and (b) value-enhancing
Capital Expenditures representing costs for which an incremental value is expected to be achieved
from increasing the net operating income potential for a community or recharacterizing the quality
of the income stream with an
anticipated reduction in potential sales capitalization rate for items such as replacement of
wood siding with a masonry-based Hardi-Board product, amenity upgrades and additions (including
designer kitchens, new clubhouses or fitness centers), installation of security gates and additions
of covered parking. For the avoidance of doubt, “Renovation Capital Expenditures” shall
not include development expenses for any Operating Property.

          “Reorganization”: with respect to any Multiemployer Plan, the condition that such
plan is in reorganization within the meaning of Section 4241 of ERISA.

          “Reportable Event”: any of the events set forth in Section 4043(c) of ERISA, other
than those events as to which the 30 day notice period is waived under subsections .27, .28, .29,
..30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

          “Required Ratios”: as defined in the ASOT Credit Agreement.

          “Requirements of Law”: as to any Person, the certificate of incorporation and by-laws
or other organizational or governing documents of such Person, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental Authority, in each
case applicable to or binding upon such Person or any of its Property or to which such Person or
any of its Property is subject.

          “Responsible Officer”: with respect to any Person, the chief executive officer,
president, chief financial officer, chief accounting officer, chief operating officer, general
counsel, treasurer or controller of such Person, but in any event, with respect to financial
matters, the chief financial officer, the chief accounting officer, treasurer or controller of such
Person.

          “Restricted Payments”: as defined in Section 7.6.

          “Revolving Credit Commitment”: the obligation of the Lender to make Loans and to
cause the Issuing Lender to issue Letters of Credit, in an aggregate principal and/or face amount
not to exceed $750,000,000, as the same may be changed from time to time in accordance with the
ASOT Revolving Credit Commitment.

          “Revolving Credit Commitment Period”: the period from and including the Closing Date
to the Revolving Credit Termination Date.

 

20

          “Revolving Credit Termination Date”: the fourth anniversary of the Closing Date.

          “Revolving Extensions of Credit”: an amount equal to the sum of (a) the aggregate
principal amount of all Loans then outstanding, and (b) the L/C Obligations then outstanding.

          “S&P”: Standard & Poor’s Ratings Services.

          “SEC”: the Securities and Exchange Commission (or successors thereto or an analogous
Governmental Authority).

          “Secured Guarantor Notes”: a collective reference to each unsecured promissory note,
to be made by Guarantor 1, Guarantor 2 or any ASOT Additional Parent Guarantor, as borrower, in
favor of the Borrower, as lender, in form and substance reasonably satisfactory to the ASOT
Administrative Agent, for the purpose of making a loan to Guarantor 1, Guarantor 2 or such ASOT
Additional Parent Guarantor, as applicable, to finance certain expenses of Guarantor 1, Guarantor 2
and such ASOT Additional Parent Guarantor in accordance with Section 7.6(g), as amended,
supplemented or otherwise modified from time to time.

          “Secured Note LLC”: Tishman Speyer Archstone-Smith Multifamily Series IV, L.L.C., a
Delaware limited liability company.

          “Security Documents”: the collective reference to the Guarantee and Collateral
Agreement, the Mortgages and all other security documents hereafter delivered to the Lender
granting a Lien on any Property of any Person to secure the obligations and liabilities of any Loan
Party under any Loan Document.

          “Single Employer Plan”: any Plan that is covered by Title IV of ERISA, but which is
not a Multiemployer Plan.

          “Solvent”: with respect to any Person, as of any date of determination, (a) the
amount of the “present fair saleable value” of the assets of such Person will, as of such date,
exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as
such quoted terms are determined in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of
such Person will, as of such date, be greater than the amount that will be required to pay the
liability of such Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with which to conduct its
business, and (d) such Person will be able to pay its debts as they mature. For purposes of this
definition, (i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) 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 (y)
right to an equitable remedy for breach of performance if such breach gives rise to a right to
payment, whether or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured or unmatured, disputed, undisputed, secured or unsecured.

 

21

          “Subordination of Limited Guaranty”: the Subordination of Limited Guaranty (Affiliate
Borrower I-A), dated as of the date hereof, among the Lender and the ASOT Administrative Agent and
accepted and agreed to by Guarantor 1, Guarantor 2 and the ASOT Additional Parent Guarantors.

          “Subsidiary”: as to any Person, a corporation, partnership, limited liability company
or other entity either (x) of which shares of stock or other ownership interests having ordinary
voting power (other than stock or such other ownership interests having such power only by reason
of the happening of a contingency) to elect a majority of the
board of directors or other managers of such corporation, partnership or other entity are at
the time owned or (y) the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person, provided that, a Joint Venture
shall not constitute a Subsidiary of such Person unless this clause (y) is applicable. Unless
otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall
refer to a Subsidiary or Subsidiaries of the Borrower.

          “Subsidiary Guarantor”: each Subsidiary of the Borrower that is or becomes a party to
the Guarantee and Collateral Agreement. “Subsidiary Guarantors” shall not include (i) any
Excluded Foreign Subsidiary or any Subsidiary of a Foreign Subsidiary or (ii) any Subsidiary of the
Borrower prohibited from providing a guarantee of the Obligations pursuant to Indebtedness
permitted by Section 7.2.

          “Successor Borrower”: as defined in Section 7.4(a).

          “Targets”: collectively, the Company and the ASOT Borrower.

          “Test Date”: as defined in the ASOT Credit Agreement.

          “TSREV”: Tishman Speyer Real Estate Venture VII, L.P.

          “Type”: as to any Loan, its nature as a Base Rate Loan or a Eurodollar Loan.

          “Unsecured Affiliate Borrower”: as defined in Section 7.2(u).

          “Unsecured Affiliate Lender”: as defined in Section 7.2(u).

          “Unsecured Employee Cost Loans”: as defined in Section 7.2(u).

          “Wholly Owned Subsidiary”: as to any Person, any other Person all of the Capital
Stock of which (other than directors’ qualifying shares required by law) is owned by such Person
directly and/or through other Wholly Owned Subsidiaries. For the avoidance of doubt, the
definition of “Wholly Owned Subsidiary” shall include any Person all of the outstanding Capital
Stock (other than directors’ qualifying shares) of which is owned, directly or indirectly, by the
Borrower.

          “Wholly Owned Subsidiary Guarantor”: any Subsidiary Guarantor that is a Wholly Owned
Subsidiary of the Borrower.

 

22

          1.2 Other Definitional Provisions. (a) Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the other Loan Documents or
any certificate or other document made or delivered pursuant hereto or thereto.

          (b) As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms relating to the Group Members not defined
in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not defined, shall
have the respective meanings given to them under GAAP.

          (c) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

          (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          SECTION 2. AMOUNT AND TERMS OF REVOLVING CREDIT COMMITMENT

          2.1 [Intentionally Omitted].

          2.2 [Intentionally Omitted].

          2.3 [Intentionally Omitted].

          2.4
Revolving Credit Commitment. (a) Subject to the terms and conditions hereof, the
Lender agrees to make revolving credit loans (the “Loans”) to the Borrower from time to
time during the Revolving Credit Commitment Period in an aggregate principal amount at any one time
outstanding which, when added to the L/C Obligations then outstanding, does not exceed the amount
of the Revolving Credit Commitment; provided that, the Lender shall not make any Loan to
the Borrower if, after giving effect to the making of such Loan, (i) the aggregate amount of the
Available Revolving Credit Commitment would be less than zero or (ii) the aggregate amount of the
ASOT Available Revolving Credit Commitments would be less than zero. During the Revolving Credit
Commitment Period the Borrower may use the Revolving Credit Commitment by borrowing, prepaying the
Loans in whole or in part, and reborrowing, all in accordance with the terms and conditions hereof.
The Loans may from time to time be Eurodollar Loans or Base Rate Loans, as determined by the
Borrower and notified to the Lender in accordance with Sections 2.5 and 2.13, provided
that, no Loan shall be made as a Eurodollar Loan after the day that is one month prior to the
Revolving Credit Termination Date.

          (b) The Borrower shall repay all outstanding Loans on the Revolving Credit Termination Date.

          2.5 Procedure for Revolving Credit Borrowing. The Borrower may borrow under the Revolving
Credit Commitment on any Business Day during the Revolving Credit Commitment Period,
provided that, the Borrower shall deliver to the Lender a Borrowing Notice or such other form of notice
reasonably satisfactory and acceptable to the Lender prior to the

 

23

requested Borrowing Date. Any
Loans made on the Closing Date shall initially be Base Rate Loans, and no Loan may be made as,
converted into or continued as a Eurodollar Loan having an Interest Period in excess of one month
prior to the date that is the earlier of (x) the date which is 60 days after the Closing Date and
(y) the date on which the Lender has been notified in writing by the ASOT Administrative Agent that
the primary syndication of the ASOT Credit Agreement has been completed. Such borrowing will then
be made available to the Borrower by the Lender in like funds as received by the Lender from the
date on which the Lender has been notified in writing by the ASOT Administrative Agent that the
primary syndication of the ASOT Credit Agreement has been completed. The Lender shall make
available to the Borrower the proceeds of the Loans made available to the Lender by the ASOT
Administrative Agent pursuant to the ASOT Credit Agreement, in like funds as received by the
Lender.

          2.6 [Intentionally Omitted].

          2.7 [Intentionally Omitted].

          2.8 Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally
promises to pay to the Lender the then unpaid principal amount of each Loan on the Revolving Credit
Termination Date (or on such earlier date on which the Loans become due and payable pursuant to
Section 8). The Borrower hereby further agrees to pay interest on the unpaid principal amount of
the Loans from time to time outstanding from the date hereof until payment in full thereof at the
rates per annum, and on the dates, set forth in Section 2.15.

          (b) [Intentionally Omitted].

          (c) The Lender shall maintain on behalf of the Borrower, a register (the “Register”)
in which shall be recorded (i) the amount of each Loan made hereunder, the Type of such Loan and
each Interest Period applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to the Lender hereunder and (iii) the amount
of any sum received by the Lender hereunder from the Borrower.

          (d) The entries made in the Register shall, to the extent permitted by applicable law, be
prima facie evidence of the existence and amounts of the obligations of the
Borrower therein recorded; provided, however, that the failure of the Lender to
maintain the Register, or any error therein, shall not in any manner affect the obligation of the
Borrower to repay (with applicable interest) the Loans made to the Borrower by the Lender in
accordance with the terms of this Agreement.

          2.9 Commitment Fees, etc. The Borrower agrees to pay to the Lender a commitment fee for
the period from and including the Closing Date to the last day of the Revolving Credit
Commitment Period, in an amount and at such times as agreed between the Borrower and the
Lender.

          2.10 Termination or Reduction of Revolving Credit Commitment. The Borrower may not
terminate the Revolving Credit Commitment or, from time to time, reduce the Revolving Credit
Commitment without the prior written consent of the ASOT Required Lenders and the Lender (other
than in connection with the refinancing, repayment or termination in full of the ASOT Credit
Agreement and the commitments and loans thereunder); provided that no such

 

24

termination or
reduction of Revolving Credit Commitment shall be permitted if, after giving effect thereto and to
any prepayments of the Loans made on the effective date thereof, the Revolving Extensions of Credit
would exceed the Revolving Credit Commitment. Any such reduction shall reduce permanently the
Revolving Credit Commitment then in effect.

          2.11
Optional Prepayments. The Borrower may at any time and from time to time prepay the
Loans, in whole or in part, without premium or penalty, upon irrevocable notice delivered to the
Lender which notice shall specify the date and amount of such prepayment, and whether such
prepayment is of Eurodollar Loans or Base Rate Loans; provided that, if a Eurodollar Loan
is prepaid on any day other than the last day of the Interest Period applicable thereto, the
Borrower shall also pay any amounts owing pursuant to Section 2.21. If any such notice is given,
the amount specified in such notice shall be due and payable on the date specified therein,
together with (except in the case of Loans that are Base Rate Loans) accrued interest to such date
on the amount prepaid.

          2.12 [Intentionally Omitted].

          2.13 Conversion and Continuation Options. (a) The Borrower may elect from time to time to
convert Eurodollar Loans to Base Rate Loans by giving the Lender at least two Business Days’ prior
irrevocable notice of such election, provided that any such conversion of Eurodollar Loans
may be made only on the last day of an Interest Period with respect thereto. The Borrower may
elect from time to time to convert Base Rate Loans to Eurodollar Loans by giving the Lender at
least three Business Days’ prior irrevocable notice of such election (which notice shall specify
the length of the initial Interest Period therefor), provided that no Base Rate Loan may be
converted into a Eurodollar Loan (i) when any Event of Default has occurred and is continuing and
the Lender has determined in its sole discretion not to permit such conversions or (ii) after the
date that is one month prior to the Revolving Credit Termination Date.

          (b) The Borrower may elect to continue any Eurodollar Loan as such upon the expiration of the
then current Interest Period with respect thereto by giving irrevocable notice to the Lender, in
accordance with the applicable provisions of the term “Interest Period” set forth in
Section 1.1, of the length of the next Interest Period to be applicable to such Loan,
provided that, no Eurodollar Loan may be continued as such (i)
when any Event of Default has occurred and is continuing and the Lender has determined in its
sole discretion not to permit such continuations or (ii) after the date that is one month prior to
the Revolving Credit Termination Date, and provided, further, that if the Borrower
shall fail to give any required notice as described above in this paragraph or if such continuation
is not permitted pursuant to the preceding proviso, such Loans shall continue as Eurodollar Loans,
with a one month Interest Period.

          2.14 Minimum Amounts and Maximum Number of Eurodollar Tranches. Notwithstanding anything
to the contrary in this Agreement, all borrowings, conversions, continuations and optional
prepayments of Eurodollar Loans and all selections of Interest Periods shall be in such amounts and
be made pursuant to such elections so that, (a) after giving effect thereto, the aggregate
principal amount of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to
$1,000,000 or a whole multiple of $1,000,000 in excess thereof and (b) no more than ten Eurodollar
Tranches shall be outstanding at any one time.

 

25

          2.15 Interest Rates and Interest Payment Dates. (a) Each Eurodollar Loan shall bear
interest for each day during each Interest Period with respect thereto at a rate per annum equal to
the Eurodollar Rate determined for such day plus the Applicable Margin in effect for such
day.

          (b) Each Base Rate Loan shall bear interest for each day on which it is outstanding at a rate
per annum equal to the Base Rate in effect for such day plus the Applicable Margin in
effect for such day.

          (c) (i) If all or a portion of the principal amount of any Loan or Reimbursement Obligation
shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), all
outstanding Loans and Reimbursement Obligations (whether or not overdue) (to the extent legally
permitted) shall bear interest at a rate per annum that is equal to (x) in the case of the Loans,
the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this
Section plus 2% or (y) in the case of Reimbursement Obligations, the rate applicable to
Base Rate Loans plus 2%, and (ii) if all or a portion of any interest payable on any Loan
or Reimbursement Obligation or any commitment fee or other amount payable hereunder shall not be
paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue amount
shall bear interest at a rate per annum equal to the rate then applicable to Base Rate Loans
plus 2%, in each case, with respect to clauses (i) and (ii) above, from the date of such
non-payment until such amount is paid in full (after as well as before judgment).

          (d) Interest shall be payable in arrears on each Interest Payment Date, provided that,
interest accruing pursuant to paragraph (c) of this Section shall be payable from time to time on
demand.

          (e) Notwithstanding anything in the foregoing to the contrary, in no event shall the interest
rate payable by the Borrower hereunder for any Type of Loan on
any date of determination exceed the effective rate of interest paid by the Lender pursuant to
the ASOT Credit Agreement for such Type of Loan.

          2.16 Computation of Interest and Fees. (a) Interest, fees and commissions payable
pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed,
except that, with respect to Base Rate Loans on which interest is calculated on the basis of the
Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or 366-, as the case
may be) day year for the actual days elapsed. The Lender shall as soon as practicable notify the
Borrower of each determination of a Eurodollar Rate made pursuant to the ASOT Credit Agreement.
Any change in the interest rate on a Loan resulting from a change in the Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day
on which such change becomes effective. The Lender shall as soon as practicable notify the
Borrower of the effective date and the amount of each such change in interest rate made pursuant to
the ASOT Credit Agreement.

          (b) Each determination of an interest rate by the ASOT Administrative Agent pursuant to any
provision of the ASOT Credit Agreement shall be conclusive and binding on the Borrower and the
Lender in the absence of manifest error. The Lender shall, at the request of the

 

 

 26

Borrower, deliver to the Borrower a statement showing the quotations used by the ASOT Administrative Agent in
determining any interest rate pursuant to Section 2.15(a).

          2.17 Inability to Determine Interest Rate. If prior to the first day of any Interest Period:

     (a) the ASOT Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower and the Lender) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for ascertaining
the Eurodollar Rate for such Interest Period, or

     (b) the ASOT Administrative Agent shall have received notice from the ASOT Majority
Facility Lenders in respect of the Revolving Credit Facility (as defined in the ASOT Credit
Agreement) that the Eurodollar Rate determined or to be determined for such Interest Period
will not adequately and fairly reflect the cost to such ASOT Majority Facility Lenders (as
conclusively certified by such ASOT Majority Facility Lenders) of making or maintaining
their affected loans under the ASOT Credit Agreement during such Interest Period,

the ASOT Administrative Agent shall give telecopy, email or telephonic notice thereof to the
Borrower and the Lender as soon as practicable thereafter. If such notice is given (x) any
Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as
Base Rate Loans, (y) any Loans that were to have been converted on the first day of such Interest
Period to Eurodollar Loans shall be continued as Base Rate Loans and (z) any outstanding Eurodollar
Loans shall be converted, on the last day of the then current Interest Period with respect thereto,
to Base Rate Loans. Until such notice has been withdrawn by the ASOT Administrative Agent, no
further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right
to convert Loans to Eurodollar Loans.

          2.18 Payments.

          (a) [Intentionally Omitted].

          (b) [Intentionally Omitted].

          (c) [Intentionally Omitted].

          (d) The application of any payment of Loans (including prepayments) shall be made,
first, to Base Rate Loans and, second, to Eurodollar Loans. Each payment of the
Loans (except in the case of Loans that are Base Rate Loans) shall be accompanied by accrued
interest to the date of such payment on the amount paid.

          (e) All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and
shall be made prior to 2:00 p.m. (New York City time) on the due date thereof to the Lender, at the
Payment Office, in Dollars and in immediately available funds. Any payment made by the Borrower
after 2:00 p.m. (New York City time) on any Business Day shall be deemed to have been on the next
following Business Day. If any payment hereunder (other

 

27

than payments on the Eurodollar Loans)becomes due and payable on a day other than a Business Day, such payment shall be extended to the
next succeeding Business Day. If any payment on a Eurodollar Loan becomes due and payable on a day
other than a Business Day, the maturity thereof shall be extended to the next succeeding Business
Day unless the result of such extension would be to extend such payment into another calendar
month, in which event such payment shall be made on the immediately preceding Business Day. In the
case of any extension of any payment of principal pursuant to the preceding two sentences, interest
thereon shall be payable at the then applicable rate during such extension.

          2.19 Requirements of Law. (a) If the adoption of or any change in any Requirement of Law or in the interpretation or
application thereof or compliance by the Lender with any request or directive (whether or not
having the force of law) from any central bank or other Governmental Authority made subsequent to
the date hereof:

     (i) shall subject the Lender to any tax of any kind whatsoever with respect to
this Agreement, any Application or any Eurodollar Loan made by it, or change the
basis of taxation of payments to the Lender in respect thereof (except for
Non-Excluded Taxes covered by Section 2.20 and changes in the rate of tax on the net
income of the Lender);

     (ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit
by, or any other acquisition of funds by, any office of the Lender that is not
otherwise included in the determination of the Eurodollar Rate hereunder; or

     (iii) shall impose on the Lender any other condition;

and the result of any of the foregoing is to increase the cost to the Lender, by an amount which
the Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar
Loans, or to reduce any amount receivable hereunder in respect thereof, then, in any such case, the
Borrower shall promptly pay the Lender, upon its demand, any additional amounts necessary to
compensate the Lender for such increased cost or reduced amount receivable. If the Lender becomes
entitled to claim any additional amounts pursuant to this Section 2.19, it shall promptly notify
the Borrower of the event by reason of which it has become so entitled.

          (b) If the Lender shall have determined that the adoption of or any change in any Requirement
of Law regarding capital adequacy or in the interpretation or application thereof or compliance by
the Lender or any corporation controlling the Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any
Governmental Authority made subsequent to the date hereof shall have the effect of reducing the
rate of return on the Lender’s or such corporation’s capital as a consequence of its obligations
hereunder or under to a level below that which the Lender or such corporation could have achieved
but for such adoption, change or compliance (taking into consideration the Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by the Lender to be
material, then from time to time, after submission by the Lender to the Borrower of a written request therefor, the Borrower shall pay to the Lender such additional amount or amounts as will
compensate the Lender or such corporation for such reduction.

 

28

          (c) A certificate setting forth in reasonable detail any additional amounts payable pursuant
to this Section 2.19 submitted by the Lender to the Borrower shall be prima facie evidence in the
absence of manifest error. The obligations of the Borrower pursuant to this Section 2.19 shall
survive the termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

          2.20 Taxes. (a) All payments made by the Borrower under this Agreement shall be made free and clear of,
and without deduction or withholding for or on account of, any present or future income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding net
income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Lender (i) as
a result of a present or former connection between the Lender and the jurisdiction of the
Governmental Authority imposing such tax or any political subdivision or taxing authority thereof
or therein (other than any such connection arising solely from the Lender’s having executed,
delivered or performed its obligations or received a payment under, or enforced, this Agreement or
any other Loan Document), (ii) by the jurisdiction (or any political subdivision thereof) under
which the Lender is organized or in which its principal office is located or in which its lending
office is located, and (iii) as a branch profits tax imposed by the jurisdiction in which the
Borrower is located. If any such non-excluded taxes, levies, imposts, duties, charges, fees,
deductions or withholdings (“Non-Excluded Taxes”) or any Other Taxes are required to be
withheld from any amounts payable to the Lender hereunder, the amounts so payable to the Lender
shall be increased to the extent necessary to yield to the Lender (after payment of all
Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the
rates or in the amounts specified in this Agreement; provided, however, that the
Borrower shall not be required to increase any such amounts payable to the Lender with respect to
any Non-Excluded Taxes (i) that are attributable to the Lender’s failure to comply with the
requirements of paragraph (d) or (e) of this Section 2.20, (ii) that are United States withholding
taxes imposed on amounts payable to the Lender on the Closing Date or (iii) that are United States
withholding taxes imposed on amounts payable to the Lender at the time the Lender changes its
lending office other than at the request of the Borrower, except to the extent that the Lender was
entitled, at the time of the change in its lending office, to receive additional amounts from the
Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph (a).

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

          (c) Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as
possible thereafter the Borrower shall send to the Lender a certified copy of an original official
receipt received by the Borrower (or, if an official receipt is not available, such other evidence
of payment as shall be satisfactory to the Lender) showing payment thereof. If the Borrower fails
to pay any Non-Excluded Taxes or Other Taxes required to be paid by the Borrower pursuant to this
Agreement when due to the appropriate taxing authority or fails to remit to the Lender the required
receipts or other required documentary

 

29

evidence, the Borrower shall indemnify the Lender for any incremental taxes, interest or penalties that may become payable by the Lender as a result of any
such failure. The agreements in this Section 2.20 shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.

          (d) The Lender shall, with respect to any payments that the Lender directs to be paid to a
non-U.S. address or non-U.S. bank account, deliver to the Borrower a duly completed original signed
copy of U.S. Internal Revenue Service Form W-9, or any subsequent versions thereof or successors
thereto that the Lender is entitled to provide at such time in order to comply with United States
backup withholding requirements. Such forms shall be delivered by the Lender on or before the date
it becomes a party to this Agreement and on or before the date, if any, the Lender designates a new
lending office. In addition, the Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by the Lender. The Lender shall promptly notify the
Borrower at any time it determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification adopted by the U.S.
taxing authorities for such purpose). Notwithstanding any other provision of this paragraph, the
Lender shall not be required to deliver any form pursuant to this paragraph that the Lender is not
legally able to deliver.

          (e) If the Lender is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement, the Lender shall deliver to
the Borrower, at the time or times prescribed by applicable law or reasonably requested by the
Borrower, such properly completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate, provided that the
Lender is legally entitled to complete, execute and deliver such documentation and in the Lender’s
reasonable judgment such completion, execution or submission would not materially prejudice the
legal position of the Lender.

          2.21 Indemnity. The Borrower agrees to indemnify the Lender for, and to hold the Lender harmless from, any
loss or expense that the Lender may sustain or incur as a consequence of (a) default by the
Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the provisions of this
Agreement, (b) default by the Borrower in making any prepayment after the Borrower has given a
notice thereof in accordance with the provisions of this Agreement or (c) the making of a prepayment or conversion of Eurodollar Loans on a day that is not the last day
of an Interest Period with respect thereto. Such indemnification may include an amount equal to
the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, for the period from the date of such prepayment or of
such failure to borrow, convert or continue to the last day of such Interest Period (or, in the
case of a failure to borrow, convert or continue, the Interest Period that would have commenced on
the date of such failure) in each case at the applicable rate of interest for such Loans provided
for herein (excluding, however, the Applicable Margin included therein, if any) over (ii)
the amount of interest (as reasonably determined by the Lender in consultation with the ASOT
Administrative Agent) that would have accrued to the Lender on such amount by placing such amount
on deposit for a comparable period with leading banks in the interbank eurodollar market. A
certificate as to any amounts payable pursuant to this

 

30

Section 2.21 submitted to the Borrower by the Lender shall be conclusive in the absence of manifest error. This covenant shall survive the
termination of this Agreement and the payment of the Loans, and all other amounts payable
hereunder.

          2.22 Illegality. Notwithstanding any other provision herein, if the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof shall make it unlawful for the
Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the commitment
of the Lender hereunder to make Eurodollar Loans, continue Eurodollar Loans as such and convert
Base Rate Loans to Eurodollar Loans shall forthwith be canceled and (b) the Lender’s Loans then
outstanding as Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the
respective last days of the then current Interest Periods with respect to such Loans or within such
earlier period as required by law. If any such conversion of a Eurodollar Loan occurs on a day
which is not the last day of the then current Interest Period with respect thereto, the Borrower
shall pay to the Lender such amounts, if any, as may be required pursuant to Section 2.21.

          2.23
[Intentionally Omitted].

          2.24
[Intentionally Omitted].

          2.25
[Intentionally Omitted].

          2.26
[Intentionally Omitted].

          2.27
Exculpation. Subject to the qualifications below, the Lender shall not enforce the liability and obligation
of the Borrower to perform and observe the obligations contained in this Agreement or the other
Loan Documents by any action or proceeding wherein a money judgment shall be sought against the
Borrower, except that the Lender may bring a foreclosure action, an action for specific performance
or any other appropriate action or proceeding to enable the Lender to enforce and realize upon its
interest under this Agreement and the other Loan Documents, or in the Collateral given to Lender
pursuant to the Loan Documents; provided, however, that, except as specifically
provided herein, any judgment in any such action or proceeding shall be enforceable against the Borrower only to the extent of the Borrower’s interest in the
Collateral given to the Lender, and the Lender, by accepting this Agreement and the other Loan
Documents, shall not sue for, seek or demand any deficiency judgment against the Borrower in any
such action or proceeding under or by reason of or under or in connection with this Agreement or
the other Loan Documents. The provisions of this Section 2.27 shall not, however, (a) constitute a
waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents;
(b) impair the right of the Lender to name the Borrower as a party defendant in any action or suit
for foreclosure and sale under the Guarantee and Collateral Agreement; (c) affect the validity or
enforceability of any guaranty made in connection with the Loans or any of the rights and remedies
of the Lender thereunder; (d) impair the right of the Lender to obtain the appointment of a
receiver; (e) constitute a prohibition against the Lender to seek a deficiency judgment against the
Borrower in order to fully realize on any security given by the Borrower in connection with the
Loans or to commence any other appropriate action or proceeding in order for the Lender to exercise
its remedies against such security; or (f) constitute a waiver of the right of the Lender to
enforce the liability

 

31

and obligation of the Borrower, by money judgment or otherwise, to the extent
of any loss, damage, cost, expense, liability, claim or other obligation incurred by the Lender
(including attorneys’ fees and costs reasonably incurred) arising out of or in connection with the
following:

     (i) fraud or intentional misrepresentation by the Borrower in connection with
the Loans;

     (ii) the gross negligence or willful misconduct by the Borrower;

     (iii) the breach of any representation, warranty, covenant or indemnification
provision in the Loan Documents concerning Environmental Laws, hazardous substances
and asbestos and any indemnification of the Lender with respect thereto in either
document;

     (iv) the removal or disposal of any portion of the Collateral after an Event of
Default;

     (v) the misapplication or conversion by the Borrower of (a) any insurance
proceeds paid by reason of any loss, damage or destruction to any portion of the
Collateral, (b) any awards or other amounts received in connection with the
condemnation of all or a portion of the Collateral and (c) any rents, rent
equivalents, moneys payable as damages or in lieu of rent or rent equivalents,
royalties (including, without limitation, all oil and gas or other mineral royalties
and bonuses), income, receivables, receipts, revenues, deposits (including, without
limitation, security, utility and other deposits), accounts, cash, issues, profits,
charges for services rendered, and other consideration of whatever form or nature
received by or paid to or for the account of or benefit of the Borrower or its
agents or employees from any and all sources arising from or attributable to the
Collateral, and proceeds, if any, from business interruption or other loss of income
insurance;

     (vi) failure to pay charges for labor or materials or other charges that can
create Liens on any portion of the Collateral;

     (vii) any security deposits, advance deposits or other deposits collected with
respect to the Collateral which are not delivered to the Lender upon a foreclosure
of any portion of the Collateral or action in lieu thereof, except to the extent any
such security deposits were applied in accordance with the terms and conditions of
any lease, sublease or subsublease, letting, license, concession or other agreement
(whether written or oral and whether now or hereafter in effect) pursuant to which
any Person is granted a possessory interest in, or right to use or occupy all or any
portion of any space in the Property, and every modification, amendment or other
agreement relating to such lease, sublease, subsublease, or other agreement entered
into in connection with such lease, sublease, subsublease, or other agreement and
every guarantee of the performance and observance of the covenants, conditions and
agreements to be performed and observed by the other party thereto prior to the
occurrence of the Event of Default that gave rise to such foreclosure or action in
lieu thereof; or

 

32

     (viii) the breach by the Borrower of the Borrower’s indemnification obligations
set forth in Section 10.5.

Notwithstanding anything to the contrary in this Agreement or any of the Loan Documents, (A) the
Lender shall not be deemed to have waived any right which the Lender may have under Section 506(a),
506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code (the “Bankruptcy Code”)
to file a claim for the full amount of the Obligations or to require that the Collateral shall
continue to secure all of the Obligations owing to the Lender in accordance with the Loan
Documents, and (B) the Obligations shall be fully recourse to the Borrower in the event that: (i)
the Borrower fails to obtain the Lender’s prior consent to any subordinate financing or other
voluntary Lien encumbering the Collateral; (ii) the Borrower fails to obtain the Lender’s prior
consent to any assignment, transfer, or conveyance, direct or indirect, of the Collateral or any
interest therein or the Borrower or any interest in the Borrower, as required by the Guarantee and
Collateral Agreement or this Agreement; (iii) the Borrower files a voluntary petition under the
Bankruptcy Code or any other federal or state bankruptcy or insolvency law; (iv) an Affiliate,
officer, director, or representative which controls, directly or indirectly, the Borrower files, or
joins in the filing of, an involuntary petition against the Borrower under the Bankruptcy Code or
any other federal or state bankruptcy or insolvency law, or solicits or causes to be solicited
petitioning creditors for any involuntary petition against the Borrower from any Person; (v) the
Borrower files an answer consenting to or otherwise acquiescing in or joining in any involuntary
petition filed against it, by any other Person under the Bankruptcy Code or any other federal or
state bankruptcy or insolvency law, or solicits or causes to be solicited petitioning creditors for
any involuntary petition from any Person; (vi) any Affiliate, officer, director, or representative
which controls the Borrower consents to or acquiesces in or joins in an application for the
appointment of a custodian, receiver, trustee, or examiner for the Borrower or any portion of the
Collateral; or (vii) the Borrower makes an assignment for the benefit of creditors, or admits, in
writing or in any legal proceeding, its insolvency or inability to pay its Obligations as they
become due.

SECTION 3. LETTERS OF CREDIT

          3.1
L/C Commitment. (a) Subject to the terms and conditions of the ASOT Credit Agreement, the Lender, in reliance
on the agreements of the other ASOT Revolving Credit Lenders set forth in Section 3.4(a) of the
ASOT Credit Agreement, agrees to cause the Issuing Lender to issue letters of credit (“Letters
of Credit”) for the account of the Borrower on any Business Day during the ASOT Revolving
Credit Commitment Period in such form as may be approved from time to time by the Lender and the
Issuing Lender; provided that, the Lender shall not have any obligation to cause any Letter
of Credit to be issued if, after giving effect to such issuance, (i) the L/C Obligations would
exceed the L/C Commitment (ii) the aggregate amount of the Available Revolving Credit Commitment
would be less than zero, (iii) the ASOT L/C Obligations would exceed the ASOT L/C Commitment or
(iv) the aggregate amount of the ASOT Available Revolving Credit Commitments would be less than
zero. Each Letter of Credit shall (i) be denominated in Dollars and (ii) expire no later than the
earlier of (x) the first anniversary of its date of issuance and (y) the date which is five
Business Days prior to the

 

33

Revolving Credit Termination Date; provided that any Letter of Credit with a one-year term may provide for the renewal thereof for additional one-year periods
(which shall in no event extend beyond the date referred to in clause (y) above).

          (b) The Lender shall not at any time be obligated to cause any Letter of Credit to be issued
hereunder if such issuance would conflict with, or cause the Lender, the Issuing Lender or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of Law.

          3.2 Procedure for Issuance of Letter of Credit. The Borrower may from time to time request that the Lender cause an Issuing Lender to issue a
Letter of Credit by delivering to the Lender and such Issuing Lender at its address for notices
specified in the ASOT Credit Agreement an Application therefor, completed to the satisfaction of
the Lender and the Issuing Lender, and such other certificates, documents and other papers and
information as the Lender and such Issuing Lender may request. Upon receipt of any Application,
the Lender will notify the ASOT Administrative Agent of the amount, the beneficiary and the
requested expiration of the requested Letter of Credit, and upon receipt of confirmation from the
ASOT Administrative Agent that after giving effect to the requested issuance, the ASOT Available
Revolving Commitments would not be less than zero, the Lender will cause such Application and the
certificates, documents and other papers and information delivered to it in connection therewith to
be processed by the Issuing Bank in accordance with its customary procedures and shall promptly
cause the Letter of Credit requested thereby to be issued by causing the original of such Letter of
Credit to be issued to the beneficiary thereof or as otherwise may be agreed to by the Lender,
Issuing Bank and the Borrower. The Lender shall furnish a copy of such Letter of Credit to the
Borrower promptly following the issuance thereof. The Lender shall promptly give notice to the
ASOT Administrative Agent as set forth in the ASOT Credit Agreement of the issuance of each Letter
of Credit (including the face amount thereof), and shall provide a copy of such Letter of Credit to
the ASOT Administrative Agent as soon as possible after the date of issuance.

          3.3 Fees and Other Charges. (a) The Borrower will pay to the Lender a fee on the aggregate drawable amount of all
outstanding Letters of Credit issued for its account (other than any such Letters of Credit that
have been fully cash collateralized pursuant to terms satisfactory to the Issuing Lender) at a per
annum rate equal to the Applicable Margin then in effect with respect to the Eurodollar Loans and
payable quarterly in arrears on each L/C Fee Payment Date after the issuance date. In addition,
the Borrower shall pay to the Lender, for the benefit of the Issuing Lender, a fronting fee on the
aggregate drawable amount of all outstanding Letters of Credit issued by, the Issuing Lender for
the Borrower’s account at a rate per annum agreed upon between the Lender and the Issuing Lender,
payable quarterly in arrears on each L/C Fee Payment Date after the issuance date.

          (b) In addition to the foregoing fees, the Borrower shall pay or reimburse the Lender and the
Issuing Lender, as the case may be, for normal and customary costs and expenses as are incurred or
charged by the Issuing Lender in issuing, negotiating, effecting payment under, amending or
otherwise administering any Letter of Credit issued for the Borrower’s account.

          3.4 [Intentionally Omitted].

 

34

          3.5 Reimbursement Obligation of the Borrower. The Borrower agrees to reimburse the Lender, on each date on which the Lender notifies the
Borrower of the date and amount of a draft presented under any Letter of Credit and paid by the
Issuing Lender, for the amount of (a) such draft so paid and (b) any taxes, fees, charges or other
reasonable costs or expenses incurred by the Lender or the Issuing Lender in connection with such
payment (the amounts described in the foregoing clauses (a) and (b) in respect of any drawing,
collectively, the “Payment Amount”). Each such payment shall be made to the Lender at its
address for notices specified herein in lawful money of the United States of America and in
immediately available funds. Interest shall be payable on each Payment Amount from the date of the
applicable drawing until payment in full at the rate set forth in (i) until the second Business Day
following the date of the applicable drawing, Section 2.15(b) and (ii) thereafter, Section 2.15(c).
Each drawing under any Letter of Credit shall constitute a request by the Borrower to the Lender
for a borrowing pursuant to Section 2.5 of Base Rate Loans in the amount of such drawing. The
Borrowing Date with respect to such borrowing shall be the first date on which a borrowing of Loans
could be made, pursuant to Section 2.5, if the Lender had received a notice of such borrowing at
the time of such drawing under such Letter of Credit.

          3.6 [Intentionally Omitted].

          3.7 Obligations Absolute. The Borrower’s obligations under this Section 3 shall be absolute and unconditional under any
and all circumstances and irrespective of any setoff, counterclaim or defense to payment that the
Borrower may have or have had against the Lender, any Issuing Lender, any beneficiary of a Letter
of Credit or any other Person. The Borrower also agrees with the Lender that the Lender shall not
be responsible for, and the Borrower’s Reimbursement Obligations under Section 3.5 shall not be
affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in
fact prove to be invalid, fraudulent or forged, provided that, such document or endorsement
appears on its face to comply with the terms of such Letter of Credit, or any dispute between or
among the Borrower and any beneficiary of any Letter of Credit or any other party to which such
Letter of Credit may be transferred or any claims whatsoever of the Borrower against any
beneficiary of such Letter of Credit or any such transferee. The Lender shall not be liable for
any error, omission, interruption or delay in transmission, dispatch or delivery of any message or
advice, however transmitted, in connection with any Letter of Credit, except for errors or
omissions found by a final and nonappealable decision of a court of competent jurisdiction to have
resulted from the gross negligence, bad faith or willful misconduct of the Lender. The Borrower
agrees that any action taken or omitted by the Lender or an Issuing Lender under or in connection
with any Letter of Credit issued by it or the related drafts or documents, if done in the absence
of gross negligence, bad faith or willful misconduct and in accordance with the standards of care
specified in the Uniform Commercial Code of the State of New York, shall be binding on the Borrower
and shall not result in any liability of the Lender or such Issuing Lender to the Borrower.

          3.8 Letter of Credit Payments. If any draft shall be presented for payment under any Letter of Credit, the Lender shall
promptly notify the Borrower and the ASOT Administrative Agent of the date and amount thereof. The
responsibility of the Lender to the Borrower in connection with any draft presented for payment
under any Letter of Credit, in addition to any payment obligation expressly provided for in such
Letter of Credit issued by the

 

35

Issuing Lender, shall be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment
appear on their face to be in conformity with such Letter of Credit.

          3.9 Applications. To the extent that any provision of any Application related to any Letter of Credit is
inconsistent with the provisions of this Section 3, the provisions of this Section 3 shall apply.

SECTION 4. REPRESENTATIONS AND WARRANTIES

          To induce the Lender to enter into this Agreement and to make the Loans and to cause the
Issuing Lender to issue the Letters of Credit, the Borrower hereby represents and warrants to the
Lender that:

          4.1 [Intentionally Omitted].

          4.2 No Change. Since December 31, 2006, there has been no development or event that has had or could
reasonably be expected to have a Material Adverse Effect.

          4.3 Corporate Existence; Compliance with Law. Each of the Group Members (a) is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, (b) has the corporate power and authority, and
the legal right, to own and operate its Property, to lease the Property it operates as lessee and
to conduct the business in which it is currently engaged, (c) is duly qualified as a foreign
corporation or other organization and in good standing under the laws of each jurisdiction where
its ownership, lease or operation of Property or the conduct of its business requires such
qualification and (d) is in compliance with all Requirements of Law, except, in the case of clauses
(c) and (d), to the extent that the failure to be so qualified or comply therewith could not, in
the aggregate, reasonably be expected to have a Material Adverse Effect.

          4.4 Corporate Power; Authorization; Enforceable Obligations. Each Group Member has the corporate power and authority, and the legal right, to make, deliver
and perform the Loan Documents to which it is a party and, in the case of the Borrower, to borrow
hereunder. Each Group Member has taken all necessary corporate or other action to authorize the
execution, delivery and performance of the Loan Documents to which it is a party and, in the case
of the Borrower, to authorize the borrowings on the terms and conditions of this Agreement. No
consent or authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the borrowings hereunder
or the execution, delivery, performance, validity or enforceability of this Agreement or any of the
other Loan Documents, except (i) such as have been obtained or made and are in full force and
effect, (ii) the filings referred to in Section 4.19, and (iii) consents or authorizations, to the
extent that the failure to obtain such consents, authorizations, filings and notices (or the
failure to keep the same in full force and effect) could not reasonably be expected to have a
Material Adverse Effect. Each Loan Document has been duly executed and delivered on behalf of each
Loan Party that is a party thereto. This Agreement constitutes, and each other Loan Document upon
execution will constitute, a legal, valid and binding obligation of each Loan Party that is a party
thereto, enforceable against each such Loan Party in accordance with

 

36

its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

          4.5 No Legal Bar. The execution, delivery and performance of this Agreement and the other Loan Documents, the
issuance of Letters of Credit, the borrowings hereunder and the use of the proceeds thereof will
not violate any Requirement of Law or any Contractual Obligation of any Group Member except, solely
with respect to a violation of a Contractual Obligation of any Group Member, to the extent such
violation could not reasonably be expected to have a Material Adverse Effect, and will not result
in, or require, the creation or imposition of any Lien on any of their respective properties or
revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the
Liens created by the Security Documents and such Liens permitted pursuant to Section 7.3 hereof).
No Requirement of Law or Contractual Obligation applicable to any Group Member could reasonably be expected to have a Material Adverse Effect.

          4.6 No Material Litigation. Except as otherwise disclosed to the Lender, no litigation, investigation or proceeding of or
before any arbitrator or Governmental Authority is pending or, to the actual knowledge of any
Responsible Officer of the Borrower, threatened by or against any Group Member or against any of
their respective properties or revenues (a) with respect to any of the Loan Documents or any of the
transactions contemplated hereby or thereby, or (b) that could reasonably be expected to have a
Material Adverse Effect.

          4.7 No Default. None of the Group Members is in default under or with respect to any of its Contractual
Obligations in any respect that could reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.

          4.8 Ownership of Property; Liens. Each of the Group Members has title in fee simple to, or a valid leasehold interest in, all of
its real property, and good title to, or a valid leasehold interest in, all its other Property, and
none of such Property is subject to any Lien except as permitted by Section 7.3.

          4.9 Intellectual Property. Each of the Group Members owns, or is licensed to use, all Intellectual Property necessary for
the conduct of its business as currently conducted. To the knowledge of any Group Member, no
material claim has been asserted and is pending by any Person challenging or questioning the use of
any Intellectual Property or the validity or effectiveness of any Intellectual Property, nor does
any Group Member know of any valid basis for any such claim. To the knowledge of any Group Member,
the use of Intellectual Property by the Group Members does not infringe on the rights of any Person
in any material respect.

          4.10 Taxes. Each of the Group Members has filed or caused to be filed all federal, state and other
material tax returns that are required to be filed and has paid all taxes shown to be due and
payable on said returns or on any assessments made against it or any of its Property and all other
taxes, fees or other charges imposed on it or any of its Property by any Governmental Authority
that are due and payable, and, except as otherwise disclosed to the Lender in writing, no tax Lien
has been filed, and, to the knowledge of the Borrower, no claim is

 

37

being asserted, with respect to any such tax, fee or other charge (other than any, in each case, the amount or validity of which
are currently being contested in good faith by appropriate proceedings and with respect to which
reserves in conformity with GAAP have been provided on the books of the applicable Group Member, as
the case may be).

          4.11 Federal Regulations. No part of the proceeds of any Loans, and no other extensions of credit hereunder, will be
used for “purchasing” or “carrying” any “margin stock” within the respective meanings of each of
the quoted terms under Regulation U as now and from time to time hereafter in effect or for any
purpose that violates the provisions of the regulations of the Board. If requested by the Lender,
the Borrower will furnish to the Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1 referred to in Regulation U.

          4.12 Labor Matters. There are no strikes or other labor disputes against any Group Member pending or, to the
knowledge of the Borrower, threatened that (individually or in the aggregate) could reasonably be
expected to have a Material Adverse Effect. Hours worked by and payment made to employees of the
Group Members have not been in violation of the Fair Labor Standards Act or any other applicable
Requirement of Law dealing with such matters that (individually or in the aggregate) could
reasonably be expected to have a Material Adverse Effect. All payments due from any Group Member
on account of employee health and welfare insurance that (individually or in the aggregate) could
reasonably be expected to have a Material Adverse Effect if not paid have been paid or accrued as a
liability on the books of the applicable Group Member.

          4.13 ERISA. Neither a Reportable Event nor an “accumulated funding deficiency” (within the meaning of
Section 412 of the Code or Section 302 of ERISA) has occurred during the five-year period prior to
the date on which this representation is made or deemed made with respect to any Plan, and each
Plan has complied in all material respects with the applicable provisions of ERISA and the Code.
No termination of a Single Employer Plan has occurred, and no Lien in favor of the PBGC or a Plan
has arisen, during such five-year period. The present value of all accrued benefits under each
Single Employer Plan (based on those assumptions used to fund such Plans) did not, as of the last
annual valuation date prior to the date on which this representation is made or deemed made, exceed
the value of the assets of such Plan allocable to such accrued benefits by a material amount.
Neither the Borrower nor any Commonly Controlled Entity has had a complete or partial withdrawal
from any Multiemployer Plan that has resulted or could reasonably be expected to result in a
material liability under ERISA, and neither the Borrower nor any Commonly Controlled Entity would
become subject to any material liability under ERISA if the Borrower or any such Commonly
Controlled Entity were to withdraw completely from all Multiemployer Plans as of the valuation date
most closely preceding the date on which this representation is made or deemed made. No such
Multiemployer Plan is in Reorganization or Insolvent.

          4.14 Investment Company Act; Other Regulations. No Loan Party is an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended. No Loan Party is
subject to regulation under any Requirement of Law (other than Regulation X) that limits its
ability to incur Indebtedness.

 

38

          4.15 Subsidiaries. (a) The Subsidiaries listed on Schedule 4.15 constitute all the Subsidiaries of the
Borrower at the date hereof. Schedule 4.15 sets forth as of the Closing Date the name and
jurisdiction of incorporation of each Subsidiary and, as to each Subsidiary, the percentage of each
class of Capital Stock owned by each Group Member and whether such Subsidiary is a Subsidiary
Guarantor.

          (b) There are no outstanding subscriptions, options, warrants, calls, rights or other
agreements or commitments (other than stock options granted to employees or directors and
directors’ qualifying shares) of any nature relating to any Capital Stock of any Group Member.

          4.16 Use of Proceeds. The proceeds of the Loans and the Letters of Credit, shall be used (i) to finance the working
capital needs of the Borrower and its Subsidiaries in the ordinary course of business, including
without limitation, the ongoing development and construction costs related to the real property
purchased by the Development Subsidiary-A pursuant to the Development Asset Acquisition and any
additional real property acquired by the Borrower and its subsidiaries hereafter and (ii) for
general corporate purposes. The Revolving Credit Loans may not be used to pay any Administration
Fees during any Cure Period.

          4.17 Environmental Matters. Other than exceptions to any of the following that could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect:

     (a) Each of the Group Members: (i) is, and within the period of all applicable
statutes of limitation has been, in compliance with all applicable Environmental Laws; (ii)
holds all Environmental Permits (each of which is in full force and effect) required for any
of its current or intended operations or for any property owned, leased, or otherwise
operated by it; (iii) is, and within the period of all applicable statutes of limitation has
been, in compliance with all of its Environmental Permits; and (iv) to the extent within the
control of such Group Member: each of its Environmental Permits will be timely renewed and
complied with; any additional Environmental Permits that may be required of it will be
timely obtained and complied with, without material expense; and compliance with any
Environmental Law that is or is expected to become applicable to it will be timely attained
and maintained, without material expense.

     (b) Materials of Environmental Concern are not present at, on, under, in, or about any
real property now or formerly owned, leased or operated by any Group Member, or at any other
location (including, without limitation, any location to which Materials of Environmental
Concern have been sent for re-use or recycling or for treatment, storage, or disposal) which
could reasonably be expected to (i) give rise to liability of the Group Members under any
applicable Environmental Law or otherwise result in costs to the Group Members, (ii)
interfere with the continued operations of the Group Members or (iii) impair the fair saleable value of any Real Property owned or
leased by any Group Member.

     (c) There is no judicial, administrative, or arbitral proceeding (including any notice
of violation or alleged violation) under or relating to any Environmental Law to

 

39

which any Group Member is, or to the knowledge of any Group Member will be, named as a party that is
pending or, to the knowledge of any Group Member, threatened.

     (d) None of the Group Members has received any written request for information, or been
notified that it is a potentially responsible party under or relating to the federal
Comprehensive Environmental Response, Compensation, and Liability Act or any similar
Environmental Law, or with respect to any Materials of Environmental Concern.

     (e) None of the Group Members has entered into or agreed to any consent decree, order,
or settlement or other agreement, or is subject to any judgment, decree, or order or other
agreement, in any judicial, administrative, arbitral, or other forum for dispute resolution,
relating to compliance with or liability under any Environmental Law.

     (f) None of the Group Members has assumed or retained, by contract, conduct or
operation of law, any liabilities of any kind, fixed or contingent, known or unknown, under
any Environmental Law or with respect to any Materials of Environmental Concern.

          4.18 Accuracy of Information, etc. No statement or information contained in this Agreement, any other Loan Document, or any other
document, certificate or statement furnished to the Lender, by or on behalf of any Loan Party for
use in connection with the transactions contemplated by this Agreement or the other Loan Documents,
contained as of the date such statement, information, document or certificate was so furnished, any
untrue statement of a material fact or omitted to state a material fact necessary to make the
statements contained herein or therein not materially misleading. The projections and pro
forma financial information contained in the materials referenced above are based upon good
faith estimates and assumptions believed by management of the Borrower to be reasonable at the time
made, it being recognized by the Lender that such financial information as it relates to future
events is not to be viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth therein by a material
amount. There is no fact known to any Loan Party that could reasonably be expected to have a
Material Adverse Effect that has not been expressly disclosed herein, in the other Loan Documents
or in any other documents, certificates and statements furnished to the Lender for use in
connection with the transactions contemplated hereby and by the other Loan Documents.

          4.19 Security Documents. (a) The Guarantee and Collateral Agreement is effective to create in favor of the Lender, a
legal, valid and enforceable security interest in the Collateral described therein and proceeds
thereof. In the case of the Pledged Stock described in the Guarantee and Collateral
Agreement, when any stock certificates representing such Pledged Stock are delivered to the
Lender, and in the case of the other Collateral described in the Guarantee and Collateral
Agreement, when Uniform Commercial Code financing statements in appropriate form are filed in the
offices specified on Schedule 4.19 (which Uniform Commercial Code financing statements have
been duly completed and delivered to the Lender) and such other filings as are specified on
Schedule 3 to the Guarantee and Collateral Agreement have been completed (all of which filings have
been duly completed), the Guarantee and Collateral Agreement shall constitute a fully perfected
Lien on, and security interest in, all right, title and

 

40

interest of the Loan Parties in such Collateral and the proceeds thereof, as security for the Obligations (as defined in the Guarantee
and Collateral Agreement), in each case prior and superior in right to any other Person (except
Liens permitted by Section 7.3).

          (b) Schedule 1.1B lists, as of the Closing Date, each parcel of owned real property
and each leasehold interest in real property located in the United States and held by the Borrower
or any of its Subsidiaries.

          4.20 Solvency. The Borrower is, and the Group Members, taken as a whole, are, and after giving effect to the
Development Asset Acquisition and the incurrence of all Indebtedness and obligations being incurred
in connection herewith and therewith will be and will continue to be, Solvent.

          4.21 Regulation H. No Mortgage encumbers improved real property which is located in an area that has been
identified by the Secretary of Housing and Urban Development as an area having special flood
hazards and in which flood insurance has been made available under the National Flood Insurance Act
of 1968 (except any Mortgaged Properties as to which such flood insurance as required by Regulation
H has been obtained and is in full force and effect as required by this Agreement).

SECTION 5. CONDITIONS PRECEDENT

          5.1
Conditions to Initial Extension of Credit. Subject to Section 6.12, the agreement of the Lender to make the initial extension of credit
requested to be made by it hereunder is subject to the satisfaction, prior to or substantially
contemporaneously with the making of such extension of credit on the Closing Date, of the following
conditions precedent:

     (a) Loan Documents. The Lender shall have received (i) this Agreement,
executed and delivered by a duly authorized officer of the Borrower, (ii) the Guarantee and
Collateral Agreement, executed and delivered by a duly authorized officer of each Subsidiary
Guarantor and the Borrower, and (iii) the Development Loan Intercreditor Agreement, executed
and delivered by a duly authorized officer of each party thereto.

     (b) ASOT Credit Agreement. Each condition precedent to the effectiveness of
the ASOT Credit Agreement shall have either been substantially contemporaneously satisfied
or waived in accordance therewith and the Lender shall have received proceeds of at least
$4,719,000,000 from the proceeds of the ASOT Term Loans in accordance with the terms of the
ASOT Credit Agreement.

     (c) Development Asset Acquisition. The following transactions shall have been
consummated substantially contemporaneously:

     (i) the Development Subsidiary-A shall have received proceeds in an amount
equal to at least $500,000,000 in cash from the Development Loan Credit Agreement;

 

41

     (ii) the Development Asset Acquisition shall have been consummated pursuant to
the Development Purchase Agreement, which agreement shall be in form and substance
reasonably satisfactory to the ASOT Lenders, and no provision thereof shall have
been waived, amended, supplemented or otherwise modified in a manner that would
reasonably be expected to have a material adverse effect to the ASOT Lenders without
the prior written consent of the ASOT Administrative Agent.

     (d) Approvals. (i) All governmental and third party approvals (including
material landlords’ and other consents) necessary in connection with the Development Asset
Acquisition and the continuing operations of the Group Members shall have been obtained and
be in full force and effect.

     (ii) All governmental and third party approvals (including material landlords’
and other consents) necessary in connection with the Revolving Credit Commitment
shall have been obtained and be in full force and effect.

     (e) [Intentionally Omitted].

     (f) [Intentionally Omitted].

     (g) [Intentionally Omitted].

     (h) [Intentionally Omitted].

     (i) [Intentionally Omitted].

     (j) [Intentionally Omitted].

     (k) Solvency Analysis. The Lender shall have received a customary solvency
analysis certified by the chief financial officer or treasurer of the Borrower which shall
document the solvency of the Borrower and its Subsidiaries considered as a whole after
giving effect to the transactions contemplated hereby.

     (l) Lien Searches. The Lender shall have received the results of a recent lien
search in each of the jurisdictions in which Uniform Commercial Code financing statements or
other filings or recordations should be made to evidence or perfect security interests in
all assets of the Loan Parties, and such search shall reveal no liens on any of the assets
of the Loan Parties, except for Liens permitted by Section 7.3 or Liens to be discharged on
or prior to the Closing Date.

     (m) Environmental Matters. The Lender shall have received an American Society
for Testing & Materials (“ASTM”) compliant Environmental Site Assessment
(“ESA”) dated no earlier than the date that is six months prior to the Closing Date
for each of the Operating Properties, together with a letter from the environmental
consultant permitting the ASOT Administrative Agent and the Lender to rely on the
environmental assessment as if addressed to and prepared for each of them, and the ASOT
Lenders shall be satisfied with the environmental affairs of the Group Members.

 

42

     (n) Closing Certificate. The Lender shall have received a certificate of each
Loan Party, dated the Closing Date, substantially in the form of Exhibit C, with appropriate
insertions and attachments.

     (o) [Intentionally Omitted].

     (p) Pledged Stock; Stock Powers; Acknowledgment and Consent; Pledged Notes.
The Lender shall have received (i) the certificates (if any) representing the shares of
Capital Stock pledged pursuant to the Guarantee and Collateral Agreement, together with an
undated stock power for each such certificate executed in blank by a duly authorized officer
of the pledgor thereof, (ii) an Acknowledgment and Consent, substantially in the form of
Annex II to the Guarantee and Collateral Agreement, duly executed by any issuer of Capital
Stock pledged pursuant to the Guarantee and Collateral Agreement that is not itself a party
to the Guarantee and Collateral Agreement and (iii) each promissory note pledged pursuant to
the Guarantee and Collateral Agreement endorsed (without recourse) in blank (or accompanied
by an executed transfer form in blank satisfactory to the Lender) by the pledgor thereof.

     (q) Filings, Registrations and Recordings. Each document (including, without
limitation, any Uniform Commercial Code financing statement) required by the Security
Documents or under law or reasonably requested by the Lender or the ASOT Administrative
Agent to be filed, registered or recorded in order to create in favor of the Lender, a
perfected Lien on the Collateral described therein, prior and superior in right to any other
Person (other than with respect to Liens expressly permitted by Section 7.3), shall have
been filed, registered or recorded or shall have been delivered to the Lender in proper form
for filing, registration or recordation.

     (r) [Intentionally Omitted].

     (s) [Intentionally Omitted].

     (t) Insurance. The Lender shall have received insurance certificates
satisfying the requirements of Section 6.5.

          5.2 Conditions to Each Extension of Credit. The agreement of the Lender to make any extension of credit requested to be made by it
hereunder on any date (including, without limitation, its initial extension of credit) is subject
to the satisfaction of the following conditions precedent:

     (a) Representations and Warranties. Each of the representations and warranties
made by any Loan Party in or pursuant to the Loan Documents (except, in the case of the
initial extensions of credit on the Closing Date, the representations contained in Sections
4.6, 4.7, 4.8, 4.9, 4.10, 4.12, 4.13, 4.15, 4.17, 4.18, 4.20 and 4.21) shall be true and
correct in all material respects on and as of such date as if made on and as of such date,
provided that, (i) such representations made on the Closing Date with respect to the
Targets shall be limited to the representations made in the Merger Agreement material to the
interests of the Lenders, but only to the extent that TSREV has the right to terminate its
obligations as a result of a breach of such representations in the Merger

 

43

Agreement and (ii) any representation and warranty that is qualified as to “materiality”, “Material Adverse
Effect” or similar language shall be true and correct on such respective dates.

     (b) No Default. No Default or Event of Default shall have occurred and be
continuing on such date or after giving effect to the extensions of credit requested to be
made on such date.

          Each borrowing by and issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such extension of credit
that the conditions contained in this Section 5.2 have been satisfied.

SECTION 6. AFFIRMATIVE COVENANTS

          The Borrower hereby agrees that, so long as the Revolving Credit Commitment remains in effect,
any Letter of Credit remains outstanding or any Loan or other amount is owing to the Lender, the
Borrower shall and shall cause each of its Subsidiaries to:

          6.1 [Intentionally Omitted].

          6.2 Certificates; Other Information. Furnish to the Lender:

          (a) [intentionally omitted];

     (b) as soon as available, but in any event (i) within 120 days after the end of each
fiscal year of the Borrower and (ii) not later than 60 days after the end of the first three
fiscal quarterly periods of each fiscal year of the Borrower, (A) a Compliance Certificate
containing all information and calculations necessary for determining compliance by the
Group Members with the provisions of this Agreement referred to therein as of the last day
of the fiscal quarter or fiscal year of the Borrower, as the case may be and (B) any Uniform Commercial Code financing statements or other filings
specified in such Compliance Certificate as being required to be delivered therewith;

     (c) [intentionally omitted];

     (d) [intentionally omitted];

     (e) [intentionally omitted];

     (f) within five days after the same are sent, copies of all financial statements and
reports that any Group Member sends to the holders of any class of its debt securities or
equity securities, and, within five days after the same are filed, copies of all financial
statements and reports that any Group Member may make to, or file with, the SEC
(provided that the names of any limited partners identified in such financial
statements or reports may be redacted prior to delivery);

     (g) [intentionally omitted]; and

 

44

     (h) promptly, such additional financial and other information as the Lender may from
time to time reasonably request.

          6.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its material obligations of whatever nature, except where the amount or
validity thereof is currently being contested in good faith by appropriate proceedings and reserves
in conformity with GAAP with respect thereto have been provided on the books of any Group Member,
as the case may be.

          6.4 Conduct of Business and Maintenance of Existence; Compliance. (a)(i) Preserve, renew and keep in full force and effect its organizational existence and (ii)
take all reasonable action to maintain all rights, privileges and franchises necessary or desirable
in the normal conduct of its business, except, in each case, as otherwise permitted by Section 7.4
and except, in the case of clause (ii) above, to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect; and (b) comply with all Contractual
Obligations and Requirements of Law, except to the extent that failure to comply therewith could
not, in the aggregate, reasonably be expected to have a Material Adverse Effect.

          6.5 Maintenance of Property; Insurance. (a) Keep all Property and systems useful and necessary in its business in good working order
and condition, ordinary wear and tear excepted and (b) maintain with financially sound and
reputable insurance companies insurance on all its Property in at least such amounts and against at
least such risks (but including in any event public liability, product liability and business
interruption) as are usually insured against in the same general area by companies engaged in the
same or a similar business.

          6.6 Inspection of Property; Books and Records; Discussions. (a) Keep proper books of records and account 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 and (b) permit representatives of any ASOT Lender to visit
and inspect any of its properties during normal business hours and examine and make abstracts from
any of its books and records at any reasonable time and as often as may reasonably be desired (but
no more than one visit per any 12-month period shall be permitted (except upon the occurrence and
during the continuance of an Event of Default)) and to discuss the business, operations, properties
and financial and other condition of the Group Members with officers and employees of the Group
Members and with its independent certified public accountants; provided, however,
that (a) unless an Event of Default has occurred and is continuing, the Group Members shall only be
required to pay the expenses of one such inspection of all of the Group Members’ books and records
during any fiscal year, (b) unless an Event of Default has occurred and is continuing, the Lender
shall cooperate so that such visit does not materially disrupt the normal operations of such Group
Member, and (c) the Lender shall conduct each such inspection in compliance with all reasonable
safety and security requirements of such Group Member.

          6.7
Notices. Promptly give notice to the Lender of:

          (a) the occurrence of any Default or Event of Default;

 

45

     (b) any (i) default or event of default under any Contractual Obligation of any Group
Member or (ii) litigation, investigation or proceeding which may exist at any time between
any Group Member and any Governmental Authority, that in either case, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have a Material
Adverse Effect;

     (c) any litigation or proceeding affecting any Group Member (i) in which the amount
involved is $50,000,000 or more and not covered by insurance, (ii) in which material
injunctive or similar relief is sought or (iii) which relates to any Loan Document;

     (d) the following events, as soon as possible and in any event within 30 days after the
Borrower knows or has reason to know thereof: (i) the occurrence of any Reportable Event
with respect to any Plan, a failure to make any required contribution to a Plan, the
creation of any Lien in favor of the PBGC or a Plan or any withdrawal from, or the
termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution
of proceedings or the taking of any other action by the PBGC or the Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or the
termination, Reorganization or Insolvency of, any Plan;

     (e) as soon as possible and in any event within 30 days of obtaining knowledge thereof:
(i) any development, event, or condition that, individually or in the aggregate with other
developments, events or conditions, could reasonably be expected to result in the payment by
the Group Members, in the aggregate, of a Material Environmental Amount; and (ii) any notice that any governmental authority may deny any
application for an Environmental Permit sought by, or revoke or refuse to renew any
Environmental Permit held by, any Group Member;

     (f) [intentionally omitted]; and

     (g) any development or event that has had or could reasonably be expected to have a
Material Adverse Effect.

          Each notice pursuant to this Section 6.7 shall be accompanied by a statement of the Borrower,
signed on behalf of the Borrower by a Responsible Officer, setting forth details of the occurrence
referred to therein and stating what action the relevant Group Member proposes to take with respect
thereto.

          6.8
Environmental Laws. (a) Comply in all material respects with, and ensure compliance in all material respects by
all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply
in all material respects with and maintain, and ensure that all tenants and subtenants obtain and
comply in all material respects with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws.

          (b) Conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly comply in all material
respects with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.

 

46

          (c) If any ESA or update delivered pursuant to Section 5.1(m) identifies a Recognized
Environmental Condition (“REC”), as defined under ASTM guidelines, the Borrower shall,
within six months of the delivery of such ESA or update to the Lender and the ASOT Administrative
Agent, conduct such follow up testing, provide such reports, and take such other actions as
required or approved by the applicable Governmental Authority to the Lender and the ASOT
Administrative Agent to mitigate such REC.

          6.9 [Intentionally Omitted].

          6.10 Additional Collateral, etc. (a) With respect to any Property acquired after the Closing Date by any Group Member (other
than (x) any real property or any Property described in paragraph (c) of this Section 6.10, (y) any
Property subject to a Lien expressly permitted by Section 7.3 and (z) Property acquired by an
Excluded Foreign Subsidiary) as to which the Lender does not have a perfected Lien, promptly (i)
execute and deliver to the Lender such amendments to the Guarantee and Collateral Agreement or such
other documents as the Lender or the ASOT Administrative Agent deems necessary to grant to the
Lender a security interest in such Property and (ii) take all actions necessary to grant to the
Lender a perfected first priority security interest in such Property, including, without
limitation, the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and Collateral
Agreement or by law or as may be requested by the Lender or the ASOT Administrative Agent.

          (b) With respect to (i) any fee interest in any real property having an appraised value
(together with improvements thereof) of at least $5,000,000 acquired after the Closing Date by any
Group Member (other than any such real property owned by an Excluded Foreign Subsidiary or subject
to a Lien expressly permitted by Section 7.3), or (ii) subject to the related Loan Party obtaining
the required landlord consent (provided that each Loan Party shall use commercially
reasonable efforts to obtain such consent), any leasehold interest in real property having an
aggregate appraised value of $5,000,000 acquired or leased (including any leasehold property
interest owned by any new Subsidiary acquired after the Closing Date) in one or a series of
transactions after the Closing Date by any Group Member, promptly (and in any event no later than
60 days after the acquisition thereof) (A) execute and deliver a first priority Mortgage in favor
of the Lender, covering such real property, (B) if requested by the Lender or the ASOT
Administrative Agent, provide the ASOT Administrative Agent with (x) title and extended coverage
insurance covering such real property in an amount at least equal to the purchase price of such
real property (or such other amount as shall be reasonably specified by the Lender or the ASOT
Administrative Agent) as well as a current ALTA survey thereof, together with a surveyor’s
certificate and (y) any consents or estoppels reasonably deemed necessary by the Lender or the ASOT
Administrative Agent in connection with such Mortgage, each of the foregoing in form and substance
reasonably satisfactory to the ASOT Administrative Agent and (C) if reasonably requested by the
Lender or the ASOT Administrative Agent, deliver to the ASOT Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the ASOT Administrative Agent.

          (c) With respect to any new Subsidiary (other than an Excluded Foreign Subsidiary) created or
acquired after the Closing Date (which, for the purposes of this paragraph,

 

47

shall include any existing Subsidiary that ceases to be an Excluded Foreign Subsidiary), by any Group Member,
promptly (i) execute and deliver to the Lender such amendments to the Guarantee and Collateral
Agreement as the ASOT Administrative Agent deems necessary to grant to the Lender a perfected first
priority security interest in the Capital Stock of such new Subsidiary that is owned by any Group
Member, (ii) deliver to the Lender the certificates representing such Capital Stock (if any),
together with undated stock powers, in blank, executed and delivered by a duly authorized officer
of such Group Member, as the case may be, (iii) cause such new Subsidiary (A) to become a party to
the Guarantee and Collateral Agreement and (B) to take such actions necessary to grant to the
Lender a perfected first priority security interest in the Collateral described in the Guarantee
and Collateral Agreement with respect to such new Subsidiary, including, without limitation, the
filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by
the Guarantee and Collateral Agreement or by law or as may be requested by the Lender or the ASOT
Administrative Agent, and (iv) if reasonably requested by the ASOT Administrative Agent, deliver to
the ASOT Administrative Agent legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the ASOT
Administrative Agent.

          (d) With respect to any new Excluded Foreign Subsidiary created or acquired after the Closing
Date by any Group Member (other than any Excluded Foreign Subsidiaries), promptly (i) execute and deliver to the Lender such amendments to the Guarantee and Collateral
Agreement or such other documents as the Lender or the ASOT Administrative Agent deems necessary in
order to grant to the Lender a perfected first priority security interest in the Capital Stock of
such new Subsidiary that is owned by any Group Member (other than any Excluded Foreign
Subsidiaries), (provided that in no event shall more than 65% of the total outstanding
Capital Stock of any such new Excluded Foreign Subsidiary be required to be so pledged), (ii)
deliver to the Lender the certificates (if any) representing such Capital Stock, together with
undated stock powers, in blank, executed and delivered by a duly authorized officer of such Group
Member, as the case may be, and take such other action as may be necessary or, in the opinion of
the Lender or the ASOT Administrative Agent, desirable to perfect the Lien of the Lender thereon,
and (iii) if reasonably requested by the Lender or the ASOT Administrative Agent, deliver to the
ASOT Administrative Agent legal opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to the ASOT
Administrative Agent.

          6.11 Further Assurances. From time to time execute and deliver, or cause to be executed and delivered, such additional
instruments, certificates or documents, and take such actions, as the Lender or the ASOT
Administrative Agent may reasonably request for the purposes of implementing or effectuating the
provisions of this Agreement and the other Loan Documents, or of more fully perfecting or renewing
the rights of the Lender with respect to the Collateral (or with respect to any additions thereto
or replacements or proceeds thereof or with respect to any other property or assets hereafter
acquired by any Group Member which may be deemed to be part of the Collateral) pursuant hereto or
thereto. Upon the exercise by the Lender of any power, right, privilege or remedy pursuant to this
Agreement or the other Loan Documents which requires any consent, approval, recording,
qualification or authorization of any Governmental Authority, the Borrower will execute and
deliver, or will cause the execution and delivery of, all applications, certifications, instruments
and other documents and papers that the

 

48

ASOT Administrative Agent or the Lender may be required to obtain from any Group Member for such governmental consent, approval, recording, qualification or
authorization.

          6.12 Post-Closing Covenants. On or prior to the date that is 60 Business Days after the Closing Date, the Borrower shall
deliver to the Lender:

     (a) (i) certificates representing the Capital Stock of any Person constituting
Collateral, to the extent that the organizational documents of such Person provides that the
equity interests therein shall be certificated, and (ii) such other documents required in
connection therewith pursuant to Section 5.1(p); and

     (b) an agreement relating to the payment of the Administration Fees by the Combined
Group Members, including turnover provisions, duly executed and delivered by an authorized
officer of each of the Funds, in form and substance reasonably satisfactory to the ASOT
Administrative Agent.

          6.13
[Intentionally Omitted].

          6.14
[Intentionally Omitted].

          6.15
[Intentionally Omitted].

          6.16
[Intentionally Omitted].

          6.17
Additional Development Properties. In the event that any Real Property that is not a Completed Property (each, an “Additional
Development Property”) is acquired by the Group Members after the Closing Date, the Borrower
shall cause (i) such Additional Development Property to be acquired by a Subsidiary other than the
Development Subsidiary-A and its Subsidiaries, (ii) any Group Member to comply with the terms of
Section 6.10, to the extent required and (iii) Schedule 1.1B to be updated to reflect such
acquisition.

SECTION 7. NEGATIVE COVENANTS

          The Borrower hereby agrees that, so long as the Revolving Credit Commitment remains in effect,
any Letter of Credit remains outstanding or any Loan or other amount is owing to the Lender, the
Borrower shall not and shall not permit any of its Subsidiaries to, directly or indirectly:

          7.1 [Intentionally Omitted].

          7.2
Limitation on Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:

          (a) Indebtedness of any Loan Party pursuant to any Loan Document;

          (b) Indebtedness of the Borrower to any of its Subsidiaries and of any Wholly Owned
Subsidiary of the Borrower to the Borrower or any other Subsidiary of the Borrower;

 

49

          (c) Indebtedness (including, without limitation, Capital Lease Obligations) secured by
Liens permitted by Section 7.3(g) in an aggregate principal amount not to exceed
$15,000,000 at any one time outstanding minus the aggregate outstanding principal
amount of Indebtedness of the Affiliate Borrowers and their Subsidiaries permitted by
Section 7.2(c) of the applicable Affiliate Borrower Credit Agreements;

          (d) Indebtedness of the Subsidiaries of the Borrower outstanding on the date hereof
and listed on Schedule 7.2(d) and any refinancings, refundings, renewals or
extensions thereof (without any increase in the principal amount thereof or any shortening
of the maturity of any principal amount thereof);

          (e) Guarantee Obligations made in the ordinary course of business by any Subsidiaries
of the Borrower of obligations of the Borrower or any of its Wholly Owned Subsidiaries;

          (f) [intentionally omitted];

          (g) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business, or in respect of netting services, overdraft protections or otherwise in connection with
deposit accounts;

          (h) Indebtedness arising under any Capital Stock purchase, repurchase or redemption
obligations which may arise pursuant to joint venture agreements in effect on the Closing
Date;

          (i) Indebtedness (other than Recourse Indebtedness) assumed by the Subsidiaries of the
Borrower (other than Development Subsidiary-A) in connection with any acquisition permitted
by Section 7.8(h); provided that, such Indebtedness existed at the time of such
acquisition and was not created in connection therewith or in contemplation thereof, and
provided, further that, (i) the Borrower shall deliver to the Lender a
pro forma Compliance Certificate certifying that, after giving effect to
such additional Indebtedness, no Event of Default shall exist and (ii) the ASOT Borrower
shall have delivered to the ASOT Administrative Agent a certificate of a Responsible
Officer (A) containing all information and calculations necessary, and taking into
consideration such additional Indebtedness, for determining pro forma
compliance with the provisions of Section 7.1 of the ASOT Credit Agreement (other than
Sections 7.1(a) and 7.1(c) of the ASOT Credit Agreement if such Indebtedness is assumed
during a Cure Period and the related acquisition was contractually committed to prior to
the related Test Date) and (B) certifying that no ASOT Loan Default or ASOT Loan Event of
Default shall have occurred and be continuing at such time or after giving effect to such
additional Indebtedness;

          (j) guarantees (including bonds), performance bonds and indemnification obligations
incurred in the ordinary course of business of obligations of the Borrower and its
Subsidiaries in favor of suppliers, customers, contractors, lessees, tenants, and

 

50

mechanics of the Borrower or any Subsidiary and any other such obligations, in each case entered into
in the ordinary course of business, which are in an outstanding amount not exceeding
$50,000,000 individually or $150,000,000 in the aggregate outstanding at any time
minus, in each case, the aggregate outstanding principal amount of such
Indebtedness of the Affiliate Borrowers and their Subsidiaries permitted by Section 7.2(j)
of the applicable Affiliate Borrower Credit Agreements;

          (k) Indebtedness of any Joint Venture, directly or indirectly owned by the Borrower to
the Borrower or any Subsidiary to the extent permitted by Section 7.8(g);

          (l) Indebtedness in respect of the Non-Recourse Subsidiary Borrowers that is secured
by either (i) Real Property acquired by the Borrower or any of its Subsidiaries after the
Closing Date and any related Property permitted by Section 7.3(r) or (ii) the Capital Stock
of any Subsidiary of such Non-Recourse Subsidiary Borrower, that is also a Non-Recourse
Subsidiary Borrower; provided that, with respect to any of the foregoing
Indebtedness:

     (A) neither the Borrower nor any of its Subsidiaries provides credit
support of any kind (including any undertaking, agreement or instrument
that would constitute Indebtedness) or is directly or indirectly liable
(as guarantor or otherwise), other than as guarantor to the extent
permitted by Section 7.2(e) for fraud, misrepresentation, misapplication
of cash, waste, environmental claims and liabilities, prohibited
transfers, violations of special purpose entity covenants and other
circumstances customarily excluded by institutional lenders from
exculpation provisions and/or included in separate guarantee or
indemnification agreements in non-recourse financing of real estate;

     (B) as to which the lenders thereunder will not have any recourse to
the Capital Stock or assets of the Borrower nor any of its Subsidiaries
other than the assets securing such Indebtedness, additions, accessions
and improvements thereto and proceeds thereof and the Capital Stock of the
Non-Recourse Subsidiary Borrower that is the borrower under such
Indebtedness and, in the case of the Borrower or any of its Subsidiaries,
recourse against the Borrower and its Subsidiaries for fraud,
misrepresentation, misapplication of cash, waste, environmental claims and
liabilities, prohibited transfers, violations of special purpose entity
covenants and other circumstances customarily excluded by institutional
lenders from exculpation provisions and/or included in separate guarantee
or indemnification agreements in non-recourse financing or tax-exempt
financing of real estate; and

     (C) to the extent that the lenders thereunder will have recourse to
the Capital Stock of the borrower of such Indebtedness, such borrower
shall be a Non-Recourse Subsidiary Borrower;

 

51

provided, further, that, (x) the Borrower shall deliver to the Lender a
pro forma Compliance Certificate certifying that, after giving effect to
such additional Indebtedness, no Event of Default shall exist and (y) the ASOT Borrower
shall have delivered to the ASOT Administrative Agent a certificate of a Responsible Officer
(i) containing all information and calculations necessary, and taking into consideration
such additional Indebtedness, for determining pro  forma compliance with the provisions of
Section 7.1(b) of the ASOT Credit Agreement and (ii) certifying that no ASOT Loan Event of
Default shall have occurred and be continuing at such time or after giving effect to such
additional Indebtedness. For the avoidance of doubt, if at any time following the Closing
Date the Borrower or any of its Subsidiaries acquires the remaining Capital Stock of any
Joint Venture not owned by the Borrower or such Subsidiary on the Closing Date, any Real
Property owned by such Joint Venture shall be included in clause (i) of this Section 7.2(l);

     (m) Construction Related Indebtedness that is not Recourse Indebtedness of any Group
Member;

     (n) [intentionally omitted];

     (o) additional unsecured Indebtedness of the Borrower or any of its Subsidiaries in an
aggregate principal amount (for the Borrower and all its Subsidiaries) not to exceed
$50,000,000 at any one time outstanding minus the aggregate outstanding principal
amount of such Indebtedness of the Affiliate Borrowers and their Subsidiaries permitted by
Section 7.2(o) of the applicable Affiliate Borrower Credit Agreements;

     (p) secured Indebtedness of the Borrower under the Affiliate Revolving Notes, the
proceeds of which are used by the Borrower for the purposes permitted by Section 4.16;

     (q) [intentionally omitted];

     (r) Indebtedness of the Development Subsidiary-A comprised of the Development Term
Loans and the Guarantee Obligations of its Subsidiaries with respect thereto;

     (s) [intentionally omitted];

     (t) fully cash collateralized letters of credit issued for the account of the Borrower
or any of its Subsidiaries, provided that, at any time the ASOT Tranche A Term Loans
are outstanding or the ASOT Borrower is not in compliance with the Required Ratios, the
aggregate face amount of such letters of credit at any one time outstanding shall not exceed
an amount equal to $25,000,000 minus the aggregate face amount of letters of credit
issued for the account of the Affiliate Borrowers or any of their Subsidiaries in accordance
with Section 7.2(t) of the Affiliate Borrower Credit Agreements; and

     (u) unsecured Indebtedness (the “Unsecured Employee Cost Loans”) incurred among
any of the Borrower, the Affiliate Borrower I-B Parent, the Affiliate Borrower II,

 

52

the ASOT
Borrower, Secured Note LLC and OC/SD JV Holdings LLC (each, an “Unsecured Affiliate
Borrower”), as borrower, and any of the Borrower, the Affiliate Borrower I-B Parent, the
Affiliate Borrower II, the ASOT Borrower, Secured Note LLC and OC/SD JV Holdings LLC (each,
an “Unsecured Affiliate Lender”), as lender, solely for the purposes of funding the
Unsecured Affiliate Borrowers’ obligations with respect to employee expenses to be shared by
the Unsecured Affiliate Borrowers.

          7.3 Limitation on Liens. Create, incur, assume or suffer to exist any Lien upon any of
its Property, whether now owned or hereafter acquired, except for:

     (a) Liens for taxes not yet due or that are being contested in good faith by
appropriate proceedings, provided that adequate reserves with respect thereto are
maintained on the books of the Borrower or its Subsidiaries, as the case may be, in
conformity with GAAP;

     (b) (i) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, workmen’s or
other like Liens, (ii) Liens of banks related to Indebtedness permitted by Section 7.2(g)
and (iii) Liens of landlords on furniture, fixtures and equipment pursuant to customary
Contractual Obligations, in each case, arising in the ordinary course of business that are
not overdue for a period of more than 30 days or that are being contested in good faith by
appropriate proceedings;

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

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

     (e) easements, rights-of-way, restrictions and other similar encumbrances incurred in
the ordinary course of business that, in the aggregate, are not substantial in amount and
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 the Borrower or any of its
Subsidiaries;

     (f) Liens in existence on the date hereof listed on Schedule 7.3(f), securing
Indebtedness permitted by Section 7.2(d) or any Liens securing any refinancings, refundings,
renewals or extensions of the foregoing, provided that, no such Lien is spread to
cover any additional Property after the Closing Date and that the amount of Indebtedness
secured thereby is not increased;

     (g) Liens securing Indebtedness of the Borrower or any of its Subsidiaries incurred
pursuant to Section 7.2(c) to finance the acquisition of fixed or capital assets,
provided that, (i) such Liens shall be created substantially simultaneously with the
acquisition of such fixed or capital assets, (ii) such Liens do not at any time encumber any
Property other than the Property financed by such Indebtedness, (iii) the principal
amount of Indebtedness secured thereby is not increased and (iv) the amount of

 

53

Indebtedness initially secured thereby is not more than 100% of the purchase price of such
fixed or capital asset;

     (h) Liens created pursuant to the Security Documents;

     (i) any interest or title of a lessor under any lease entered into by the Borrower or
any of its Subsidiaries in the ordinary course of its business and covering only the assets
so leased;

     (j) Permitted Leases (including memoranda thereof), and any recordation thereof;

     (k) Liens resulting from any judgment, writ or warrant of attachment or similar process
and not constituting an Event of Default;

     (l) licenses of Intellectual Property in the ordinary course of business;

     (m) Liens on property of a Person existing at the time such Person is acquired or
merged with or into or consolidated with the Borrower or any of its Subsidiaries (other than
the Development Subsidiary-A) to the extent permitted hereunder (and not created in
anticipation or contemplation thereof) securing Indebtedness permitted by Section 7.2(i);
provided that, such Liens do not extend to property not subject to such Liens at the
time of acquisition (other than improvements and accessions thereon and proceeds thereof),
and are no more favorable to the lienholders than such existing Liens (taken as a whole);

     (n) Liens created by sale contracts documenting unconsummated asset dispositions
permitted by this Agreement; provided that, such Liens attach only to assets and
proceeds thereof subject to such sales contracts;

     (o) Liens attaching to cash earnest money deposits made by the Borrower and its
Subsidiaries in connection with any letter of intent or purchase agreement entered into by
the Borrower or the applicable Subsidiary, provided that, such acquisition is
permitted by Section 7.8;

     (p) Liens arising by operation of law or contract on insurance policies and the
proceeds thereof to secure premiums thereunder;

     (q) purported Liens evidenced by the filing of precautionary Uniform Commercial Code
financing statements by a lessor relating solely to operating leases of personal property
entered into in the ordinary course of business;

     (r) Liens on (x) fee-owned property or real property leases of the Borrower and its
Subsidiaries and any related Property (other than the Capital Stock of the Borrower and any
of its Subsidiaries that is not a Non-Recourse Subsidiary Borrower) customarily granted or
pledged by a borrower to its lender in connection with non-recourse financing including,
without limitation, any personal property located on or related to such Property, any
contracts, receivables and general intangibles related to such real property and any Hedge Agreements relating to the Indebtedness, or (y) the Capital

 

54

Stock of any Non-Recourse Subsidiary Borrower (and, in each case, any proceeds from any of
the foregoing) which Liens secure Indebtedness permitted by Sections 7.2(l) and 7.2(m);
provided that, in each case, (i) such Liens shall be created substantially
simultaneously with the incurrence of such Indebtedness and (ii) such Liens do not at any
time encumber any Property other than the Property financed by such Indebtedness, other
than, in each case, in connection with any consolidations of such Indebtedness;

     (s) [intentionally omitted];

     (t) [intentionally omitted];

     (u) Liens on cash collateral to secure letters of credit issued for the account of the
Borrower and its Subsidiaries to the extent such letters of credit are permitted by Section
7.2(t);

     (v) Liens in favor of the Development Loan Administrative Agent for the benefit of the
“Secured Parties” (as defined in the Development Loan Credit Agreement) securing the
obligations of the Development Subsidiary-A under the Development Loan Credit Agreement; and

     (w) Liens in favor of the ASOT Borrower securing the obligations of the Borrower under
the Affiliate Revolving Notes permitted by Section 7.2(p), provided that, to the
extent any such Affiliate Revolving Note is secured by any of the assets of the Borrower and
its Subsidiaries which assets directly or indirectly constitute Collateral (as defined in
the ASOT Credit Agreement), such Lien shall be a second-priority Lien and the ASOT Borrower
shall have executed and delivered an intercreditor agreement, in form and substance
reasonably satisfactory to the ASOT Administrative Agent.

          7.4 Limitation on Fundamental Changes. Enter into any merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution),
or Dispose of all or substantially all of its Property or business, except that:

     (a) any Subsidiary of the Borrower or any other Person may be merged or consolidated
with or into, or, so long as such Subsidiary has nominal or no assets or liabilities, be
liquidated, wound up or dissolved, or all or any part of its business, Property or assets
may be conveyed, sold, leased transferred or otherwise disposed of, in one transaction or a
series of transactions to, (x) any Wholly Owned Subsidiary Guarantor (provided that
(i) a Wholly Owned Subsidiary Guarantor shall be the continuing or surviving corporation or
(ii) simultaneously with such transaction, the continuing or surviving corporation shall
become a Wholly Owned Subsidiary Guarantor and the Borrower shall comply with Section 6.10
in connection therewith) or (y) the Borrower (1) in a transaction in which the Borrower
shall be the continuing or surviving corporation or (2) in a transaction in which the
Borrower shall not be the continuing or surviving corporation (such surviving person, the
“Successor Borrower”); provided that, (A) such transaction shall not cause
the ASOT Borrower to fail to be in pro forma compliance with the covenants
contained in Section 7.1 of the ASOT Credit Agreement (other than Sections 7.1(a) and 7.1(c) of the ASOT Credit Agreement if such transaction

 

55

is consummated during a Cure Period and was contractually committed to prior to the related
Test Date), (B) the Successor Borrower shall be an entity organized or existing under the
laws of the United States, any state thereof, the District of Columbia or any territory
thereof, (C) the Successor Borrower shall expressly assume all the obligations of the
Borrower under this Agreement and the other Loan Documents to which the Borrower is a party
pursuant to a supplement hereto or thereto in a form reasonably satisfactory to the ASOT
Administrative Agent, (D) each Subsidiary Guarantor, unless it is the other party in such
transaction, shall confirm that its guarantee shall apply to the Successor Borrower’s
obligations under this Agreement, (E) each Subsidiary Guarantor, unless it is the other
party to such transaction, shall have by a supplement to the Guarantee and Collateral
Agreement confirmed that its obligations thereunder shall apply to the Successor Borrower’s
obligations under this Agreement, (F) each mortgagor of the Mortgaged Property, unless it is
the other party to such transaction, shall have by an amendment to or restatement of the
applicable Mortgage confirmed that its obligations thereunder shall apply to the Successor
Borrower’s obligations under this Agreement and/or its guarantee thereof, as applicable, (G)
such transaction shall not cause a Change of Control to occur and (H) the Borrower shall
have delivered to the Lender and the ASOT Administrative Agent an officer’s certificate
stating that such transaction and such supplement to this Agreement or any Security Document
comply with this Agreement; provided further that, if the foregoing are
satisfied, the Successor Borrower will succeed to, and be substituted for, the Borrower
under this Agreement; and

     (b) the Borrower or any Subsidiary of the Borrower may Dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to the Borrower or any Subsidiary
Guarantor.

          7.5 Limitation on Disposition of Property. Dispose of any of its Property (including,
without limitation, receivables and leasehold interests), whether now owned or hereafter acquired,
or, in the case of any Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to
any Person, except:

     (a) the Disposition of obsolete or worn out property or surplus property in the
ordinary course of business;

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

     (c) Dispositions permitted by Section 7.4(b);

     (d) the sale or issuance of the Capital Stock of any Subsidiary of the Borrower to the
Borrower or any Subsidiary Guarantor;

     (e) the Disposition of other assets, provided that, (x) with respect to any
Disposition by Development Subsidiary-A, such Disposition is in accordance with Section
7.5(e) of the Development Loan Credit Agreement, and (y)(i) such Disposition is at fair
market value, as reasonably determined by the Group Member making such Disposition, (ii)
such Disposition shall not result in a Material Adverse Effect and (iii) at
the time of such Disposition, (A) a certificate of a Responsible Officer of the ASOT

 

56

Borrower shall have been delivered to the ASOT Administrative Agent, which shall (1) include
a computation demonstrating pro forma compliance with the covenants
contained in Section 7.1(b) of the ASOT Credit Agreement after giving effect to such
Disposition and (2) certify that no ASOT Loan Default or ASOT Loan Event of Default shall
have occurred and be continuing at such time or after giving effect to such Disposition and
(B) a certificate of a Responsible Officer of the Borrower shall have been delivered to the
Lender, which shall include a certification that no Default or Event of Default shall have
occurred and be continuing at such time or after giving effect to such Disposition;

     (f) [intentionally omitted];

     (g) Permitted Leases;

     (h) Investments permitted by Section 7.8;

     (i) asset sales pursuant to “forced-sale,” “buy-sell,” “put-call” or similar
arrangements in joint venture agreements of the Joint Ventures in effect on the date hereof;

     (j) licenses of Intellectual Property in the ordinary course of business; and

     (k) Dispositions, by means of trade-in, of equipment used in the ordinary course of
business, so long as such equipment is replaced or substituted, substantially concurrently,
by like-equipment.

          7.6 Limitation on Restricted Payments. Declare or pay any dividend on, or make any
payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any Capital Stock of any Group Member,
whether now or hereafter outstanding, or make any other distribution in respect thereof, either
directly or indirectly, whether in cash or property or in obligations of any Group Member, or enter
into any derivatives or other transaction with any financial institution, commodities or stock
exchange or clearinghouse (a “Derivatives Counterparty”) obligating any Group Member to
make payments to such Derivatives Counterparty as a result of any change in market value of any
such Capital Stock (collectively, “Restricted Payments”), except that:

     (a) any Subsidiary may make Restricted Payments to the Borrower or any Subsidiary
Guarantor;

     (b) [intentionally omitted];

     (c) the Group Members may make Restricted Payments directly or indirectly to any ASOT
Parent/Affiliate Guarantor, if on the date of such Restricted Payment, the ASOT Tranche A
Term Loans have been paid in full and the ASOT Borrower is in compliance with the Required
Ratios; provided that, on the date of any such Restricted Payment, (i) the Borrower
shall deliver to the Lender a pro forma Compliance Certificate certifying
that, immediately prior to and after giving effect to such Restricted Payment, no Default or
Event of Default shall have occurred and be continuing, (ii) the ASOT

 

57

Borrower shall deliver to the ASOT Administrative Agent a certificate of a Responsible
Officer (A) containing all information and calculations necessary, and taking into
consideration such Restricted Payment, for determining pro forma compliance
with the provisions of Section 7.1 of the ASOT Credit Agreement and (B) certifying that no
ASOT Loan Default or ASOT Loan Event of Default shall have occurred and be continuing at
such time or after giving effect to such additional Restricted Payment and (iii) Restricted
Payments may not be made pursuant to this Section 7.6(c) during any Cure Period;

     (d) any Group Member may make Restricted Payments to its direct or indirect owners to
allow such direct or indirect owners to pay any taxes which are due and payable by Guarantor
1, Guarantor 2, the ASOT Additional Parent Guarantors, Holdings I Corp and the Borrower (or
the first taxpayers that are a direct or indirect owner of Guarantor 1, Guarantor 2 or any
ASOT Additional Parent Guarantor, in each case, solely to the extent of net income
attributable to the Group Members), including, without limitation, in connection with any
Disposition of Property permitted by Section 7.5 (assuming that each such owner is taxable
at the highest marginal tax rate applicable to corporations resident in New York City
(taking into account the deductibility of state and local taxes)); provided that, on
the date of any such Restricted Payment, (x) the Borrower shall deliver to the Lender a
pro forma Compliance Certificate certifying that, immediately prior to and
after giving effect to such Restricted Payment, no Default or Event of Default shall have
occurred and be continuing and (y) the ASOT Borrower shall deliver to the ASOT
Administrative Agent a certificate of a Responsible Officer (A) containing all information
and calculations necessary, and taking into consideration such Restricted Payment, for
determining pro forma compliance with the provisions of Section 7.1(b) of
the ASOT Credit Agreement and (B) certifying that no ASOT Loan Default or ASOT Loan Event of
Default shall have occurred and be continuing at such time or after giving effect to such
additional Restricted Payment;

     (e) [intentionally omitted];

     (f) [intentionally omitted];

     (g) at any time other than during a Cure Period, (x) any Group Member and its
Subsidiaries may make Restricted Payments to pay the Administration Fees or (y) the Borrower
may make loans to the Financial Reporting Parties under the Secured Guarantor Notes;
provided that, (A) on any date, the aggregate amount of Restricted Payments and the
outstanding principal amount of loans made pursuant to this Section 7.6(g) shall not at any
time exceed the aggregate amount of Administration Fees allocable to the Group Members
during the period beginning on the Closing Date and ending on the date of determination and
(B) the Secured Guarantor Notes are pledged to the Lender as Collateral, and,
provided further, that, on the date of any such Restricted Payment or loan,
(i) the Borrower shall deliver to the ASOT Administrative Agent a pro forma Compliance
Certificate certifying that, immediately prior to and after giving effect to such Restricted
Payment or loan, as applicable, no Default or Event of Default shall have occurred and be
continuing and (ii) the ASOT Borrower shall have delivered to the ASOT Administrative Agent
a certificate of a Responsible Officer (A) containing all

 

58

information and calculations necessary, and taking into consideration such Restricted
Payment or loan, as applicable, for determining pro forma compliance with the provisions of
Section 7.1 of the ASOT Credit Agreement and (B) certifying that no ASOT Loan Default or
ASOT Loan Event of Default shall have occurred and be continuing at such time or after
giving effect to such additional Restricted Payment or loan, as applicable; and

     (h) a Group Member may make Restricted Payments with Distributable Affiliate Proceeds
to the extent required under the ASOT Credit Agreement.

          7.7 Limitation on Maintenance Capital Expenditures and Renovation Capital Expenditures.
Make or commit to make any Maintenance Capital Expenditures or Renovation Capital Expenditures,
except:

     (a) Maintenance Capital Expenditures of the Group Members made in the ordinary course
of business in any fiscal year in an aggregate amount equal to the sum of all outstanding
units owned or leased by the Group Members available at the beginning of such fiscal year
multiplied by $950 (adjusted, in the case of units owned or leased by any
Joint Venture, to reflect the Ownership Percentage of the Group Members in such Joint
Venture); provided that, (i) up to 50% of any such amount referred to in this clause
(a), if not so expended in the fiscal year for which it is permitted, may be carried over
for expenditure in the next succeeding fiscal year and (ii) Maintenance Capital Expenditures
made pursuant to this clause (a) during any fiscal year shall be deemed made, first,
in respect of amounts carried over from the prior fiscal year pursuant to subclause (i)
above and second, in respect of amounts permitted for such fiscal year as provided
above;

     (b) Renovation Capital Expenditures of the Group Members made in the ordinary course of
business in an amount not to exceed an aggregate amount equal to $180,000,000 minus
the aggregate amount of Renovation Capital Expenditures of the Affiliate Borrowers made
pursuant to Section 7.7(b) of the applicable Affiliate Borrower Credit Agreement;
provided that, until the ASOT Tranche A Term Loans have been repaid in full and the
ASOT Borrower is in compliance with the Required Ratios, the aggregate amount of Renovation
Capital Expenditures made by the Group Members with respect to Joint Ventures that are not
CapEx Controlled pursuant to this Section 7.7(b) shall not exceed an amount equal to
$30,000,000 during the term of this Agreement minus the aggregate amount of
Renovation Capital Expenditures of the Affiliate Borrowers and their Subsidiaries made with
respect to Joint Ventures that are not CapEx Controlled pursuant to Section 7.7(b) of the
applicable Affiliate Borrower Credit Agreement. For the avoidance of doubt, the amount of
Renovation Capital Expenditures of any Group Member made with respect to any Joint Venture
shall be deemed to be the amount actually paid by such Group Member, including, without
limitation, amounts attributed to such Group Member from any distributions of such Joint
Venture; and

     (c) Renovation Capital Expenditures of the Group Members for Real Property acquired
after the Closing Date in accordance with Section 7.8(h), provided that, the
Borrower has delivered to the Lender a written notice generally identifying such

 

59

Renovation Capital Expenditures and the anticipated amount thereof promptly after such
acquisition.

          7.8 Limitation on Investments. Make any advance, loan, extension of credit (by way of
guaranty or otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes,
debentures or other debt securities of, or any assets constituting an ongoing business from, or
make any other investment in, any other Person (all of the foregoing, “Investments”),
except:

     (a) extensions of trade credit in the ordinary course of business;

     (b) Investments in Cash Equivalents;

     (c) Investments arising in connection with the incurrence of Indebtedness permitted by
Sections 7.2(b), 7.2(e), 7.2(j) and 7.2(u);

     (d) [intentionally omitted];

     (e) [intentionally omitted];

     (f) [intentionally omitted];

     (g) (i) Investments (other than those relating to the incurrence of Indebtedness
permitted by Section 7.8(c)) by any Group Member in the Borrower or any Person that is a
Wholly Owned Subsidiary and (ii) Investments consisting of loans to a Joint Venture owned by
the Borrower and its Subsidiaries as of the Closing Date, to the extent that (x) such loans
are required by the related joint venture agreement in effect on the Closing Date and (y)
the aggregate amount of such loans to such Joint Venture do not exceed an amount equal to
the aggregate amount of Indebtedness of such Joint Venture to its shareholders or members
multiplied by the Ownership Percentage of the Group Members in such Joint Venture;

     (h) Investments (whether made directly or indirectly through the acquisition of a
Person owning such assets) made by the Borrower and its Subsidiaries (other than Development
Subsidiary-A) to acquire Real Property, provided that, (x) such Investment shall not
result in a Material Adverse Effect, (y) at the time of such Investment, (i) a certificate
of a Responsible Officer of the Borrower shall have been delivered to the Lender, certifying
that no Default or Event of Default shall have occurred and be continuing at such time or
after giving effect to such Investment and (ii) the ASOT Borrower shall have delivered to
the ASOT Administrative Agent a certificate of a Responsible Officer (A) containing all
information and calculations necessary, and taking into consideration such Restricted
Payment, for determining pro forma compliance with the provisions of Section 7.1 of the ASOT
Credit Agreement (other than Sections 7.1(a) and 7.1(c) of the ASOT Credit Agreement if such
Investment is consummated during a Cure Period and is an acquisition that was contractually
committed to prior to the related Test Date) and (B) certifying that no ASOT Loan Default or
ASOT Loan Event of Default shall have occurred and be continuing at such time or after
giving effect to such Investment, and (z) the terms and conditions set forth in Section 6.10
are satisfied;

 

60

     (i) Investments by the Borrower and its Subsidiaries in any securities received by the
Borrower or such Subsidiary in the ordinary course of business in satisfaction or partial
satisfaction of indebtedness from financially troubled account debtors;

     (j) Investments received by the Borrower and its Subsidiaries in connection with the
bankruptcy or reorganization of suppliers and lessees and in settlement of delinquent
obligations of, and other disputes with, lessees and suppliers arising in the ordinary
course of business;

     (k) Investments by any Group Member in any Joint Venture owned by the Borrower and its
Subsidiaries as of the Closing Date, including any Investment required in connection with
(i) the exercise by any partner or member in such Joint Venture of any “forced-sale,”
“buy-sell,” “put-call” or similar arrangements in the joint venture agreements for such
Joint Venture, or (ii) the purchase of the partnership or membership interest of any other
partner or member in such Joint Venture, provided that, (x) such Investments are
required by the related joint venture agreement in effect on the Closing Date and (y) the
aggregate amount of such Investments made by the Group Members in such Joint Venture do not
exceed an amount equal to the aggregate amount of investments in such Joint Venture made by
its shareholders or members multiplied by the Ownership Percentage of the
Group Members in such Joint Venture, provided, further, that, any such
Investment in the form of a loan or advance shall be evidenced by a note and pledged as
Collateral pursuant to the Security Documents;

     (l) Investments by the Borrower and its Subsidiaries in Joint Ventures made after the
Closing Date not otherwise permitted by Section 7.8 in an aggregate amount not exceeding on
any date an amount equal to Applicable JV Investment Percentage in effect on such date of
Gross Asset Value as at the last day of the fiscal quarter most recently ended for which
financial statements are available less the aggregate amount of Investments in Joint
Ventures made by the Affiliate Borrower Group Members after the Closing Date as of such
date, provided that, (i) the amount of such Investment in the Capital Stock of any
such Joint Venture shall be net of the amount of any Indebtedness incurred by such Joint
Venture that is allocable to the Borrower and its Subsidiaries on such date and (ii) such
Investment shall be represented by a certificate representing the Capital Stock of such
Joint Venture owned by the Borrower and its Subsidiaries, as applicable, pledged by the Loan
Parties to the Lender as Collateral;

     (m) [intentionally omitted];

     (n) Investments by the Borrower and its Subsidiaries in (i) Joint Ventures existing on
the Closing Date and (ii) Joint Ventures created in connection with any Disposition by any
Group Member that owns an Owned Property to the extent such Disposition is permitted by
Section 7.5; and

     (o) loans made by the Borrower to the Financial Reporting Parties under the Secured
Guarantor Notes in accordance with Section 7.6(g).

 

61

          7.9 [Intentionally Omitted].

          7.10 Limitation on Transactions with Affiliates. Enter into any transaction, including,
without limitation, any purchase, sale, lease or exchange of Property, the rendering of any service
or the payment of any management, advisory or similar fees, with any Affiliate (other than any
Combined Group Member) unless such transaction is (a) otherwise permitted under this Agreement, (b)
in the ordinary course of business of the Group Member entering into such transaction and (c) upon
fair and reasonable terms no less favorable to the Group Member entering into such transaction than
it would obtain in a comparable arm’s-length transaction with a Person that is not an Affiliate,
other than (i) the Development Asset Acquisition and the Loan Documents, (ii) the payment of the
Administration Fees pursuant to the Fund Agreements, as in effect on the Closing Date or the date
of formation, as applicable, to the extent any Restricted Payment was permitted by Section 7.6(g),
(iii) the loans made by the Borrower to the Financial Reporting Parties pursuant to the Secured
Guarantor Notes, (iv) [intentionally omitted], (v) the Unsecured Employee Cost Loans made by the
Unsecured Affiliate Lenders to the Unsecured Affiliate Borrowers, (vi) [intentionally omitted],
(vii) [intentionally omitted] and (viii) the Administration Fee Agreement.

          7.11 Limitation on Sales and Leasebacks. Enter into any arrangement with any Person
providing for the leasing by any Group Member of real or personal property which has been or is to
be sold or transferred by such Group Member to such Person or to any other Person to whom funds
have been or are to be advanced by such Person on the security of such property or rental
obligations of such Group Member.

          7.12 Limitation on Changes in Fiscal Periods. Permit the fiscal year of the Borrower to
end on a day other than December 31 or change the Borrower’s method of determining fiscal quarters.

          7.13 Limitation on Negative Pledge Clauses. Enter into or suffer to exist or become
effective any agreement that prohibits or limits the ability of any Group Member to create, incur,
assume or suffer to exist any Lien upon any of its Property or revenues, whether now owned or
hereafter acquired, to secure the Obligations or, in the case of any guarantor, its obligations
under the Guarantee and Collateral Agreement, other than (a) this Agreement and the other Loan
Documents, (b) [intentionally omitted], (c) any agreements governing any purchase money Liens or
Capital Lease Obligations otherwise permitted hereby or Indebtedness permitted by Sections 7.2(l),
7.2(m) and 7.2(r) (in each case, any prohibition or limitation shall only be effective against the
assets financed thereby) and (d) any prohibition or limitation that (i) consists of customary
restrictions and conditions contained in any agreement relating to the sale of any Property
permitted under Section 7.5 pending the consummation of such sale, provided that, such
restriction or condition shall only be effective against such Property, (ii) exists in any
agreement in effect at the time such Subsidiary becomes a Subsidiary of the Borrower,
provided that (A) such agreement was not entered into in contemplation of such Person
becoming a Subsidiary and (B) such prohibition or limitation shall only be effective against such
Subsidiary or (iii) is imposed by any amendments or refinancings that are otherwise permitted by
the Loan Documents of the contracts, instruments or obligations referred to in clause (d)(ii),
provided that (A) such amendments and refinancings are no more materially restrictive
(taken as a whole) with respect to such prohibitions and limitations than those in effect prior to
such amendment or

 

62

refinancing and (B) the negative pledge clause(s) in such amendments or refinancings do not
extend to Property other than such Property covered in the agreements permitted in clause (d)(ii).

          7.14 Limitation on Restrictions on Subsidiary Distributions. Enter into or suffer to exist
or become effective any consensual encumbrance or restriction on the ability of any Subsidiary to
(a) make Restricted Payments in respect of any Capital Stock of such Subsidiary held by, or pay any
Indebtedness owed to, the Borrower or any other Subsidiary, (b) make Investments in the Borrower or
any other Subsidiary or (c) transfer any of its assets to the Borrower or any other Subsidiary,
except for such encumbrances or restrictions existing under or by reason of (i) any restrictions
existing under the Loan Documents and (ii) any restrictions with respect to a Subsidiary imposed
pursuant to an agreement that has been entered into in connection with the Disposition of all or
substantially all of the Capital Stock or assets of such Subsidiary.

          7.15 Limitation on Lines of Business. Enter into any material line of business, either
directly or through any Subsidiary, fundamentally or substantively different from those businesses
in which the Borrower and its Subsidiaries are engaged on the date of this Agreement (after giving
effect to the Holdings Merger) or that are reasonably related or ancillary thereto or that
represents a reasonable extension or enhancement thereof.

          7.16 [Intentionally Omitted].

          7.17 Limitation on Amendments to Other Documents. (a) Amend, supplement or otherwise
modify the organizational document of any Group Member in any manner that would adversely affect
the interests of the Lender, (b) amend, supplement or otherwise modify (pursuant to a waiver or
otherwise) the terms and conditions of the Administration Fee Agreement in any manner that would
adversely affect the application thereto of the subordination provisions set forth therein or in
any subordination agreement related thereto, or (c) otherwise amend, supplement or otherwise modify
the terms and conditions of the Administration Fee Agreement or any note related thereto, except to
the extent that any such amendment, supplement or modification could not reasonably be expected to
have a Material Adverse Effect.

          7.18 [Intentionally Omitted].

          7.19 [Intentionally Omitted].

          7.20 Limitation on Hedge Agreements. Enter into any Hedge Agreement other than Hedge
Agreements entered into in the ordinary course of business and not for speculative purposes, to
protect against changes in interest rates or foreign exchange rates.

SECTION 8. EVENTS OF DEFAULT

          If any of the following events shall occur and be continuing:

     (a) the Borrower shall fail to pay any principal of any Loan or Reimbursement
Obligation when due in accordance with the terms hereof; or the Borrower shall fail to

 

63

pay any interest on any Loan or Reimbursement Obligation, or any other amount payable
hereunder or under any other Loan Document within five days after any such interest or other
amount becomes due in accordance with the terms hereof or thereof; or

     (b) any representation or warranty made or deemed made by any Loan Party herein or in
any other Loan Document or that is contained in any certificate, document or financial or
other statement furnished by it at any time under or in connection with this Agreement or
any such other Loan Document shall prove to have been inaccurate in any material respect on
or as of the date made or deemed made or furnished; or

     (c) (i) any Loan Party shall default in the observance or performance of any agreement
contained in clause (i) or (ii) of Section 6.4(a) (with respect to the Borrower only),
Section 6.7(a), Section 7, or in Section 5 of the Guarantee and Collateral Agreement, (ii)
either the Affiliate Borrower I-B or the Affiliate Borrower II defaults on any of their
respective obligations under Section 2.12 of the applicable Affiliate Borrower Credit
Agreement or (iii) an “Event of Default” under and as defined in any Mortgage shall have
occurred and be continuing; or

     (d) any Loan Party shall default in the observance or performance of any other
agreement contained in this Agreement or any other Loan Document (other than as provided in
paragraphs (a) through (c) of this Section), and such default shall continue unremedied for
a period of 30 days after a Responsible Officer of any Loan Party has knowledge or should
have had knowledge of such default; or

     (e) any Combined Group Member shall (i) default in making any payment of any principal
of any Indebtedness (including, without limitation, any Indebtedness under the ASOT Credit
Agreement or any Guarantee Obligation, but excluding the Loans, Reimbursement Obligations
and, so long as no Event of Default has occurred and is continuing under Section 8(a) of the
ASOT Credit Agreement, the Indebtedness under any Affiliate Borrower Loan Document or any
Affiliate Revolving Note) on the scheduled or original due date with respect thereto, (ii)
default in making any payment of any interest on any such Indebtedness beyond the period of
grace, if any, provided in the instrument or agreement under which such Indebtedness was
created (excluding, so long as no Event of Default has occurred and is continuing under
Section 8(a) of the ASOT Credit Agreement, the Indebtedness under any Affiliate Borrower
Loan Document or any Affiliate Revolving Note), or (iii) default in the observance or
performance of any other agreement or condition relating to any such Indebtedness or
contained in any instrument or agreement evidencing, securing or relating thereto, or any
other event shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or beneficiary of such Indebtedness (or a
trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of
notice if required, such Indebtedness to become due prior to its stated maturity or to
become subject to a mandatory offer to purchase by the obligor thereunder or (in the case of
any such Indebtedness constituting a Guarantee Obligation) to become payable;
provided that a default, event or condition described in clause (i), (ii) or (iii)
of this paragraph (e) shall not at any time constitute an Event of Default unless, at such
time, one or more defaults, events or conditions of the type described in clauses (i), (ii)
and (iii) of this paragraph (e)

 

64

shall have occurred and be continuing with respect to Indebtedness the outstanding
principal amount of which exceeds in the aggregate $50,000,000; or

     (f) (i) any Combined Group Member shall commence any case, proceeding or other action
(A) under any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it as bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation), dissolution,
composition or other relief with respect to it or its debts, or (B) seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or any Combined Group Member shall make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced against any Combined
Group Member any case, proceeding or other action of a nature referred to in clause (i)
above that (A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of 60 days; or
(iii) there shall be commenced against any Combined Group Member any case, proceeding or
other action seeking issuance of a warrant of attachment, execution, distraint or similar
process against all or any substantial part of its assets that results in the entry of an
order for any such relief that shall not have been vacated, discharged, or stayed or bonded
pending appeal within 60 days from the entry thereof; or (iv) any Combined Group Member
shall take any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) any
Combined Group Member shall generally not, or shall be unable to, or shall admit in writing
its inability to, pay its debts as they become due; or

     (g) (i) any Person shall engage in any “prohibited transaction” (as defined in Section
406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated funding
deficiency” (as defined in Section 302 of ERISA), whether or not waived, shall exist with
respect to any Plan, or any Lien in favor of the PBGC or a Plan shall arise on the assets of
the Borrower or any Commonly Controlled Entity, (iii) a Reportable Event shall occur with
respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which Reportable Event
or commencement of proceedings or appointment of a trustee is, in the reasonable opinion of
the ASOT Required Lenders, likely to result in the termination of such Plan for purposes of
Title IV of ERISA, (iv) any Single Employer Plan shall terminate for purposes of Title IV of
ERISA, (v) the Borrower or any Commonly Controlled Entity shall, or in the reasonable
opinion of the ASOT Required Lenders shall be likely to, incur any liability in connection
with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan or (vi)
any other event or condition shall occur or exist with respect to a Plan; and in each case
in clauses (i) through (vi) above, such event or condition, together with all other such
events or conditions, if any, could, in the sole judgment of the ASOT Required Lenders,
reasonably be expected to have a Material Adverse Effect; or

     (h) one or more judgments or decrees shall be entered against any Combined Group Member
involving for the Combined Group Members taken as a whole a liability

 

65

(not paid or fully covered by insurance as to which the relevant insurance company has
acknowledged coverage) of $50,000,000 or more, and all such judgments or decrees shall not
have been vacated, discharged, stayed or bonded pending appeal within 60 days from the entry
thereof; or

     (i) any of the Security Documents shall cease, for any reason (other than by reason of
the express release thereof pursuant to Section 10.15), to be in full force and effect, or
any Loan Party or any Affiliate of any Loan Party shall so assert, or any Lien created by
any of the Security Documents shall cease to be enforceable and of the same effect and
priority purported to be created thereby other than as a result of any termination or
release in accordance with the terms of this Agreement; or

     (j) the guarantee contained in Section 2 of the Guarantee and Collateral Agreement
shall cease, for any reason (other than by reason of the express release thereof pursuant to
Section 10.15), to be in full force and effect or any Loan Party or any Affiliate of any
Loan Party shall so assert; or

     (k) any Change of Control shall occur;

then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or
(ii) of paragraph (f) above with respect to the Borrower, automatically the Revolving Credit
Commitments shall immediately terminate and the Loans hereunder (with accrued interest thereon) and
all other amounts owing under this Agreement and the other Loan Documents (including, without
limitation, all amounts of L/C Obligations, whether or not the beneficiaries of the then
outstanding Letters of Credit shall have presented the documents required thereunder) shall
immediately become due and payable, and (B) if such event is any other Event of Default, either or
both of the following actions may be taken: (i) the Lender may, by notice to the Borrower declare
the Revolving Credit Commitment to be terminated forthwith, whereupon the Revolving Credit
Commitment shall immediately terminate; and (ii) the Lender may, by notice to the Borrower, declare
the Loans hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents (including, without limitation, all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) to be due and payable forthwith, whereupon the same
shall immediately become due and payable. In the case of all Letters of Credit with respect to
which presentment for honor shall not have occurred at the time of an acceleration pursuant to this
paragraph, the Borrower shall at such time deposit in a cash collateral account opened by the ASOT
Administrative Agent an amount equal to the aggregate then undrawn and unexpired face amount of
such Letters of Credit. Amounts held in such cash collateral account shall be applied by the ASOT
Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused
portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if
any, shall be applied to repay other obligations of the ASOT Borrower under the ASOT Credit
Agreement and under the other ASOT Loan Documents. After all such Letters of Credit shall have
expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all
other obligations of the ASOT Borrower under the ASOT Credit Agreement and under the other ASOT
Loan Documents shall have been paid in full, the balance, if any, in such cash collateral account
shall be returned to the Borrower (or such other Person as may be lawfully entitled thereto).

 

66

SECTION 9. [INTENTIONALLY OMITTED]

SECTION 10. MISCELLANEOUS

          10.1 Amendments and Waivers. Neither this Agreement or any other Loan Document, nor any
terms hereof or thereof may be amended, supplemented or modified except in accordance with the
provisions of this Section 10.1. Subject to Section 7.18 of the ASOT Credit Agreement, the Lender
and each Loan Party party to the relevant Loan Document may from time to time (a) enter into
written amendments, supplements or modifications hereto and to the other Loan Documents (including
amendments and restatements hereof or thereof) for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of the Lender or of the
Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as may be specified
in the instrument of waiver, any of the requirements of this Agreement or the other Loan Documents
or any Default or Event of Default and its consequences.

          Any such waiver and any such amendment, supplement or modification shall be binding upon the
Loan Parties, the Lender and all future holders of the Loans. In the case of any waiver, the Loan
Parties and the Lender shall be restored to their former position and rights hereunder and under
the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured
and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon. Any such waiver, amendment, supplement or
modification shall be effected by a written instrument signed by the parties required to sign
pursuant to the foregoing provisions of this Section; provided that, delivery of an
executed signature page of any such instrument by facsimile transmission shall be effective as
delivery of a manually executed counterpart thereof.

          10.2 Notices. All notices, requests and demands to or upon the respective parties hereto
to be effective shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or three Business
Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed in the case of the Borrower and the Lender, as follows:

	 	 	 
	          The Borrower:

	 	c/o Tishman Speyer

45 Rockefeller Plaza

New York, New York 10111

Attention: Chief Financial Officer

Telecopy: (212) 319-1745

Telephone: (212) 715-0300
	 
	 	 
	          with copies to:

	 	Tishman Speyer

45 Rockefeller Plaza

New York, New York 10111

Attention: General Counsel

Telecopy: (212) 319-1745

Telephone: (212) 715-0300

 

67

	 	 	 
	          and

	 	Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 10019

Attention: Philip Mindlin

Telecopy: (212) 403-2217

Telephone: (212) 403-1217
	 
	 	 
	          The Lender:

	 	c/o Tishman Speyer

45 Rockefeller Plaza

New York, New York 10111

Attention: Chief Financial Officer

Telecopy: (212) 319-1745

Telephone: (212) 715-0300
	 
	 	 
	          with copies to:

	 	Tishman Speyer

45 Rockefeller Plaza

New York, New York 10111

Attention: General Counsel

Telecopy: (212) 319-1745

Telephone: (212) 715-0300
	 
	 	 
	          and

	 	Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 10019

Attention: Philip Mindlin

Telecopy: (212) 403-2217

Telephone: (212) 403-1217

provided that any notice, request or demand to or upon the Lender shall not be effective
until received.

          Notices and other communications to the Lender hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Lender; provided that, the
foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the Lender.
The Lender or the Borrower may, in its discretion, agree to accept notices and other communications
to it hereunder by electronic communications pursuant to procedures approved by it;
provided that approval of such procedures may be limited to particular notices or
communications.

          10.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on
the part of the Lender, any right, remedy, power or privilege hereunder or under the other Loan
Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by law.

 

68

          10.4 Survival of Representations and Warranties. All representations and warranties made
herein, in the other Loan Documents and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans and other extensions of credit hereunder.

          10.5 Payment of Expenses. The Borrower agrees (a) to pay or reimburse the Lender for all
its reasonable out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to, this Agreement and
the other Loan Documents and any other documents prepared in connection herewith or therewith, and
the consummation and administration of the transactions contemplated hereby and thereby, including,
without limitation, the reasonable fees and disbursements and other charges of counsel to the
Lender, (b) to pay or reimburse the Lender for all its costs and expenses incurred in connection
with the enforcement or preservation of any rights under this Agreement, the other Loan Documents
and any other documents prepared in connection herewith or therewith, including, without
limitation, the fees and disbursements of counsel to the Lender), (c) to pay, indemnify, or
reimburse the Lender for, and hold the Lender harmless from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise
and other taxes, if any, which may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement, the other Loan Documents and any such other documents, and (d) to
pay, indemnify or reimburse the Lender, its affiliates, and its officers, directors, trustees,
employees, advisors, agents and controlling persons (each, an “Indemnitee”) for, and hold
each Indemnitee harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever incurred by an Indemnitee or asserted against any Indemnitee by any third party
or by the Borrower or any other Loan Party arising out of, in connection with, or as a result of
(i) the execution or delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto or thereto of
their respective obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds thereof (including any refusal by any Issuing Lender to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Materials of Environmental Concern on or from any property owned, occupied or operated by the
Borrower or any of its Subsidiaries, or any environmental liability related in any way to the
Borrower or any of its Subsidiaries or any or their respective properties, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by any third party or by the
Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto (all
the foregoing in this clause (d), collectively, the “Indemnified Liabilities”);
provided that, the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities are found by a final
and nonappealable decision of a court of competent jurisdiction to have resulted from the gross
negligence, bad faith or willful misconduct of such Indemnitee. No Indemnitee shall be liable for
any damages arising from the use by unauthorized persons of information or other materials sent
through electronic, telecommunications or other information transmission

 

69

systems that are intercepted by such persons or for any special, indirect, consequential or
punitive damages in connection with the Loans. Without limiting the foregoing, and to the extent
permitted by applicable law, the Borrower agrees not to assert and to cause its Subsidiaries not to
assert, and hereby waives and agrees to cause its Subsidiaries so to waive, all rights for
contribution or any other rights of recovery with respect to all claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related
to Environmental Laws, that any of them might have by statute or otherwise against any Indemnitee.
All amounts due under this Section shall be payable not later than 30 days after written demand
therefor. Statements payable by the Borrower pursuant to this Section shall be submitted to the
Borrower, at the address of the Borrower set forth in Section 10.2, or to such other Person or
address as may be hereafter designated by the Borrower in a notice to the ASOT Administrative Agent
as set forth in the ASOT Credit Agreement. The agreements in this Section shall survive repayment
of the Loans and all other amounts payable hereunder.

          10.6 Successors and Assigns; Participations and Assignments. This Agreement shall be
binding upon and inure to the benefit of the Borrower, the Lender, all future holders of the Loans
and their respective successors and assigns permitted hereby, except that neither the Borrower nor
the Lender may assign or transfer any of its rights or obligations under this Agreement without the
prior written consent of the requisite ASOT Lenders pursuant to Section 7.18 of the ASOT Credit
Agreement, provided, however, that it is understood and agreed that a security
interest in this Agreement and the other Loan Documents shall be granted to the ASOT Administrative
Agent for the benefit of the ASOT Secured Parties.

          10.7 [Intentionally Omitted].

          10.8 Counterparts. This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts taken together shall
be deemed to constitute one and the same instrument. Delivery of an executed signature page of
this Agreement by facsimile or other electronic transmission shall be effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Agreement signed by all the
parties shall be lodged with the Borrower, the Lender and the ASOT Administrative Agent.

          10.9 Severability. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

          10.10 Integration. This Agreement and the other Loan Documents represent the entire
agreement of the Borrower and the Lender with respect to the subject matter hereof and thereof, and
there are no promises, undertakings, representations or warranties by the Lender relative to
subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

 

70

          10.11 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          10.12 Submission to Jurisdiction; Waivers. Each party hereto hereby irrevocably and
unconditionally:

     (a) submits for itself and its Property in any legal action or proceeding relating to
this Agreement and the other Loan Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York, the courts of the United States of America for the
Southern District of New York, and appellate courts from any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to the relevant Person at its address set forth in Section 10.2 or
at such other address of which each party hereto shall have been notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

          10.13 Acknowledgments. The Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

     (b) the Lender does not have any fiduciary relationship with or duty to the Borrower
arising out of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between the Lender, on one hand, and the Borrower, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

     (c) no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Borrower and the Lender.

 

71

          10.14 Confidentiality. The Lender agrees to keep confidential all non-public information
provided to it by any Loan Party pursuant to this Agreement that is designated by such Loan Party as confidential; provided that nothing herein shall prevent the Lender
from disclosing any such information (a) to the parties to the ASOT Credit Agreement or any
affiliate of any thereof, (b) to any prospective purchaser of Revolving Credit Commitment and/or
Loans that agrees to comply with the provisions of this Section or substantially equivalent
provisions, (c) to any of its employees, directors, agents, attorneys, accountants and other
professional advisors, (d) [intentionally omitted], (e) upon the demand of any Governmental
Authority having jurisdiction over it, (f) in response to any order of any court or other
Governmental Authority or as may otherwise be required pursuant to any Requirement of Law, (g) in
connection with any litigation or similar proceeding, (h) that has been publicly disclosed other
than in breach of this Section, (i) to the National Association of Insurance Commissioners or any
similar organization or any nationally recognized rating agency that requires access to information
about the Lender’s investment portfolio in connection with ratings issued with respect to the
Lender or (j) in connection with the exercise of any remedy hereunder or under any other Loan
Document.

          10.15 Release of Collateral and Guarantee Obligations. (a) Notwithstanding anything to the
contrary contained herein or in any other Loan Document, upon request of the Borrower in connection
with any Disposition of Property permitted by the Loan Documents or the incurrence of Indebtedness
permitted by Section 7.2(l) and 7.2(m), the Lender shall take such actions as shall be required to
release its security interest in any Collateral being Disposed of in such Disposition or to be
subject to a Lien permitted by Section 7.3(r), and to release any guarantee obligations under any
Loan Document of any Person being Disposed of in such Disposition or incurrence of such
Indebtedness, to the extent necessary to permit consummation of such Disposition or incurrence of
such Indebtedness in accordance with the Loan Documents. The Lender shall in lieu of taking
actions to release its security interest in accordance with the foregoing sentence, take such
actions as shall be reasonably requested by the Borrower to assign such security interest to the
related purchaser or lender in connection with any permitted Disposition or incurrence of
Indebtedness.

          (b) Notwithstanding anything to the contrary contained herein or any other Loan Document, when
all Obligations have been paid in full, the Revolving Credit Commitment has been terminated or
expired and no Letter of Credit shall be outstanding (unless fully cash collateralized), upon
request of the Borrower, the Lender shall take such actions as shall be required to release its
security interest in all Collateral, and to release all guarantee obligations under any Loan
Document. Any such release of guarantee obligations shall be deemed subject to the provision that
such guarantee obligations shall be reinstated if after such release any portion of any payment in
respect of the Obligations guaranteed thereby shall be rescinded or must otherwise be restored or
returned upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial
part of its property, or otherwise, all as though such payment had not been made.

          10.16 [Intentionally Omitted].

          10.17 [Intentionally Omitted].

 

72

          10.18 WAIVERS OF JURY TRIAL. THE BORROWER AND THE LENDER HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

          10.19 Exculpation. Notwithstanding anything appearing to the contrary in this Agreement, or
in the Guarantee and Collateral Agreement or any of the other Loan Documents, the Lender shall not
be entitled to enforce the liability and obligation of the Borrower or any Subsidiary Guarantor to
pay, perform and observe the obligations contained in this Agreement by any action or proceeding
against any member, shareholder, partner, manager, director, officer, agent, affiliate,
beneficiary, trustee or employee of the Borrower or any Subsidiary Guarantor (or any direct or
indirect member, shareholder, partner or other owner of any such member, shareholder, partner,
manager, director, officer, agent, affiliate or employee of the Borrower or any Subsidiary
Guarantor, or any director, officer, employee, agent, manager or trustee of any of the foregoing);
provided that, nothing in this Section 10.19 shall have the effect of exculpating from
liability any entity that is itself the Borrower or a Subsidiary Guarantor under this Agreement.

[NO FURTHER TEXT ON THIS PAGE]

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	TISHMAN SPEYER ARCHSTONE-SMITH MULTIFAMILY HOLDINGS I (BORROWER-A), L.P.

 	 
	 	By:  	Tishman Speyer Archstone-Smith Multifamily 	 
	 	 	Holdings I (Borrower-A) GP, L.L.C.,
its general

partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ George Hatzmann	 
	 	 	Name:  	George Hatzmann	 
	 	 	Title:  	Authorized Signatory	 
	 
	 	ARCHSTONE-SMITH OPERATING TRUST,

     as Lender

 	 
	 	By:  	/s/ George Hatzmann	 
	 	 	Name:  	George Hatzmann	 
	 	 	Title:  	Authorized Signatory	 
	 

[Signature Page to Credit Agreement (Affiliate Borrower I-A)]

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