Document:

2001 EXHIBIT 10.21

EXHIBIT 10.21

 

 

 

TERM LOAN AGREEMENT

Dated as of October 17, 2001

among

ALEXANDRIA REAL ESTATE EQUITIES, INC.

ALEXANDRIA REAL ESTATE EQUITIES, L.P.

ARE - QRS CORP.

ARE ACQUISITIONS, LLC

THE OTHER BORROWERS

NOW OR HEREAFTER A PARTY HERETO

THE BANKS HEREIN NAMED

THE OTHER BANKS WHICH MAY BECOME

PARTIES TO THIS AGREEMENT

FLEET NATIONAL BANK, as Managing Agent

and

FLEET SECURITIES, INC., as Arranger

 

TABLE OF CONTENTS

	 	 	
Page

	
ARTICLE 1
	
DEFINITIONS AND ACCOUNTING TERMS
	
1

	
1.1
	
Defined Terms
	
1

	
1.2
	
Use of Defined Terms
	
24

	
1.3
	
Accounting Terms
	
24

	
1.4
	
Rounding
	
24

	
1.5
	
Exhibits and Schedules
	
24

	
1.6
	
References to "Borrowers and their Subsidiaries"
	
25

	
1.7
	
Miscellaneous Terms
	
25

	
ARTICLE 2
	
LOANS
	
25

	
2.1
	
Committed Loans-General
	
25

	
2.2
	
Conversion Options
	
25

	
2.3
	
[Intentionally Omitted]
	
26

	
2.4
	
[Intentionally Omitted]
	
26

	
2.5
	
[Intentionally Omitted]
	
26

	
2.6
	
[Intentionally Omitted]
	
26

	
2.7
	
[Intentionally Omitted]
	
26

	
2.8
	
[Intentionally Omitted]
	
26

	
2.9
	
[Intentionally Omitted]
	
27

	
2.10
	
Extension of Maturity Date
	
27

	
2.11
	
Unencumbered Asset Pool
	
28

	
2.12
	
Representative of Borrowers
	
28

	
ARTICLE 3
	
PAYMENTS AND FEES
	
29

	
3.1
	
Principal and Interest
	
29

	
3.2
	
Closing Fee
	
31

	
3.3
	
[Intentionally Omitted]
	
31

	
3.4
	
[Intentionally Omitted]
	
31

	
3.5
	
Agency Fee
	
31

	
3.6
	
Extension Fees
	
31

	
3.7
	
Increased Commitment Costs
	
31

	
3.8
	
LIBOR Costs and Related Matters
	
32

	
3.9
	
Late Payments
	
35

	
3.10
	
Computation of Interest and Fees
	
35

	
3.11
	
Non-Banking Days
	
35

	
3.12
	
Manner and Treatment of Payments
	
35

	
3.13
	
Funding Sources
	
36

	
3.14
	
Failure to Charge Not Subsequent Waiver
	
37

	
3.15
	
Managing Agent's Right to Assume Payments Will be Made by Borrowers
	
37

	
3.16
	
Fee Determination Detail
	
37

	
3.17
	
Survivability
	
37

	
ARTICLE 4
	
REPRESENTATIONS AND WARRANTIES
	
37

	
4.1
	
Existence and Qualification; Power; Compliance With Laws
	
37

	
4.2
	
Authority; Compliance With Other Agreements and Instruments and Government Regulations
	
38

	
4.3
	
No Governmental Approvals Required
	
38

	
4.4
	
Subsidiaries
	
38

	
4.5
	
Financial Statements
	
39

	
4.6
	
No Other Liabilities; No Material Adverse Changes
	
39

	
4.7
	
Title to Property
	
39

	
4.8
	
Intangible Assets
	
39

	
4.9
	
Public Utility Holding Company Act
	
39

	
4.10
	
Litigation
	
39

	
4.11
	
Binding Obligations
	
40

	
4.12
	
No Default
	
40

	
4.13
	
ERISA
	
40

	
4.14
	
Regulations T, U and X; Investment Company Act
	
40

	
4.15
	
Disclosure
	
41

	
4.16
	
Tax Liability
	
41

	
4.17
	
Hazardous Materials
	
41

	
4.18
	
Initial Pool Properties
	
41

	
4.19
	
Property
	
41

	
4.20
	
Brokers
	
42

	
4.21
	
Other Debt
	
42

	
4.22
	
Solvency
	
42

	
4.23
	
No Fraudulent Intent
	
42

	
4.24
	
Transaction in Best Interests of Borrowers; Consideration
	
43

	
4.25
	
No Bankruptcy Filing
	
43

	
4.26
	
[Intentionally Omitted]
	
43

	
ARTICLE 5
	
AFFIRMATIVE COVENANTS (OTHER THAN INFORMATION AND REPORTING REQUIREMENTS)
	
43

	
5.1
	
Payment of Taxes and Other Potential Liens
	
43

	
5.2
	
Preservation of Existence
	
43

	
5.3
	
Maintenance of Properties
	
44

	
5.4
	
Maintenance of Insurance
	
44

	
5.5
	
Compliance With Laws
	
44

	
5.6
	
Inspection Rights
	
44

	
5.7
	
Keeping of Records and Books of Account
	
44

	
5.8
	
Compliance With Agreements
	
44

	
5.9
	
Use of Proceeds
	
44

	
5.10
	
Hazardous Materials Laws
	
44

	
5.11
	
Unencumbered Asset Pool
	
45

	
5.12
	
REIT Status
	
45

	
5.13
	
Additional Borrowers
	
45

	
5.14
	
Inspection of Properties and Books
	
45

	
5.15
	
More Restrictive Agreements
	
45

	
5.16
	
Distributions of Income to the Borrowers
	
46

	
5.17
	
Unencumbered Asset Pool
	
46

	
ARTICLE 6
	
NEGATIVE COVENANTS
	
47

	
6.1
	
Mergers
	
47

	
6.2
	
ERISA
	
47

	
6.3
	
Change in Nature of Business
	
47

	
6.4
	
Transactions with Affiliates
	
47

	
6.5
	
Leverage Ratio
	
48

	
6.6
	
Debt Service Coverage
	
48

	
6.7
	
Fixed Charge Coverage
	
48

	
6.8
	
Distributions
	
48

	
6.9
	
Stockholders' Equity
	
48

	
6.10
	
Development Investments
	
48

	
6.11
	
Secured Debt
	
49

	
6.12
	
Recourse Debt
	
49

	
6.13
	
Investments in Certain Persons
	
49

	
6.14
	
Negative Pledges
	
49

	
6.15
	
[Intentionally Omitted]
	
49

	
6.16
	
Limiting Agreements
	
49

	
6.17
	
Restriction on Prepayment of Indebtedness
	
49

	
6.18
	
Restrictions on Transfer
	
50

	
ARTICLE 7
	
INFORMATION AND REPORTING REQUIREMENTS
	
50

	
7.1
	
Financial and Business Information
	
50

	
7.2
	
Compliance Certificates
	
54

	
ARTICLE 8
	
CONDITIONS
	
54

	
8.1
	
Initial Advances
	
54

	
8.2
	
[Intentionally Omitted]
	
55

	
ARTICLE 9
	
EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT
	
55

	
9.1
	
Events of Default
	
55

	
9.2
	
Remedies Upon Event of Default
	
58

	
ARTICLE 10
	
THE MANAGING AGENT
	
59

	
10.1
	
Appointment and Authorization
	
59

	
10.2
	
Managing Agent and Affiliates
	
59

	
10.3
	
Proportionate Interest in any Collateral
	
60

	
10.4
	
Banks' Credit Decisions
	
60

	
10.5
	
Action by Managing Agent
	
60

	
10.6
	
Liability of Managing Agent
	
61

	
10.7
	
Indemnification
	
62

	
10.8
	
Successor Managing Agent
	
63

	
10.9
	
No Obligations of Borrowers
	
63

	
ARTICLE 11
	
MISCELLANEOUS
	
64

	
11.1
	
Cumulative Remedies; No Waiver
	
64

	
11.2
	
[Intentionally Omitted]
	
64

	
11.3
	
Costs, Expenses and Taxes
	
64

	
11.4
	
Nature of Banks' Obligations
	
65

	
11.5
	
Survival of Representations and Warranties
	
65

	
11.6
	
Notices
	
65

	
11.7
	
Execution of Loan Documents
	
65

	
11.8
	
Binding Effect; Assignment
	
66

	
11.9
	
Right of Setoff
	
68

	
11.10
	
Sharing of Setoffs
	
68

	
11.11
	
Indemnity by Borrowers
	
69

	
11.12
	
Nonliability of the Banks
	
70

	
11.13
	
No Third Parties Benefited
	
70

	
11.14
	
Confidentiality
	
71

	
11.15
	
Further Assurances
	
71

	
11.16
	
Integration
	
71

	
11.17
	
Governing Law
	
71

	
11.18
	
Severability of Provisions
	
72

	
11.19
	
Headings
	
72

	
11.20
	
Time of the Essence
	
72

	
11.21
	
Foreign Banks and Participants
	
72

	
11.22
	
Hazardous Material Indemnity
	
72

	
11.23
	
Joint and Several
	
73

	
11.24
	
Removal of a Bank
	
73

	
11.25
	
Waiver of Right to Trial by Jury
	
74

	
11.26
	
Purported Oral Amendments
	
74

	
11.27
	
Replacement of Notes
	
74

	
ARTICLE 12
	
AMENDMENTS; CONSENTS
	
74

	
12.1
	
Amendments; Consents
	
74

Exhibits

	
A
	
-
	
Commitment Assignment and Acceptance

	
B
	
-
	
[Intentionally Omitted].

	
C
	
-
	
[Intentionally Omitted].

	
D
	
-
	
[Intentionally Omitted].

	
E
	
-
	
Compliance Certificate

	
F
	
-
	
Joinder Agreement

	
G
	
-
	
Note

	
H
	
-
	
Reserved

	
I-1
	
-
	
Opinion of Counsel

	
I-2
	
-
	
Opinion of Counsel

	
J
	
-
	
Pricing Certificate

	
K
	
-
	
[Intentionally Omitted].

	
L
	
-
	
Joint Borrower Provisions

	
M
	
-
	
[Intentionally Omitted].

	
N
	
-
	
[Intentionally Omitted].

Schedules

	
1.1
	
Bank Commitment

	
1.2
	
Test Debt Service Coverage Amount Calculation

	
4.4
	
Subsidiaries

	
4.7
	
Existing Liens, Negative Pledges and Rights of Others

	
4.10
	
Material Litigation

	
4.17
	
Hazardous Materials Matters

	
4.18
	
Initial Pool Properties

	
4.19
	
Real Property

	
4.21
	
Indebtedness

TERM LOAN AGREEMENT

Dated as of October 17, 2001

This TERM LOAN AGREEMENT ("Agreement") is entered into by and among Alexandria Real Estate Equities, Inc., a Maryland corporation ("Parent"), Alexandria Real Estate Equities, L.P., a Delaware limited partnership ("Operating Partnership"), ARE-QRS Corp., a Maryland corporation ("QRS"), ARE Acquisitions, LLC, a Delaware limited liability company ("ARE"), the other borrowers whose names are set forth on the signature pages of this Agreement, each other Wholly-Owned Subsidiary of Parent which may hereafter become a party to this Agreement as a borrower pursuant to Section 5.13 (collectively, with Parent, Operating Partnership, QRS and ARE, the "Borrowers", all on a joint and several basis); each bank whose name is set forth on the signature pages of this Agreement and each lender which may hereafter become a party to this Agreement pursuant to Section 11.8 (collectively, the "Banks" and individually, a "Bank"); Fleet National Bank, as Managing Agent and Fleet Securities, Inc., as Arranger.

RECITALS

WHEREAS, Borrowers have requested that the Banks provide a loan to the Borrowers; and

WHEREAS, the Managing Agent and the Banks are willing to provide such loan to the Borrowers on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the recitals herein and the mutual covenants contained herein, the parties hereto hereby covenant and agree as follows:

	

DEFINITIONS AND ACCOUNTING TERMS

	Defined Terms.  As used in this Agreement, the following terms shall have the meanings set forth below:

"Adjusted EBITDA" means with respect to any fiscal period, an amount equal to the sum of (a) EBITDA of Parent and its Subsidiaries for such period consolidated in accordance with Generally Accepted Accounting Principles minus (b) the Capital Improvement Reserve for the Real Property of Parent and its Subsidiaries.

"Adjusted NOI" means, with respect to any Revenue-Producing Property and for any fiscal period, (a) NOI of that Revenue-Producing Property minus (b) the Capital Improvements Reserve for such Revenue-Producing Property.

"Adjusted Tangible Assets" means, as of any date of determination, without duplication, the sum of (a) Total Assets of Parent and its Subsidiaries as of that date, minus (b) Intangible Assets of Parent and its Subsidiaries as of that date minus (c) any "minority interest" held by third parties and included within Total Assets as of that date, determined on a consolidated basis in accordance with Generally Accepted Accounting Principles.

"Affiliate" means, as to any Person, any other Person which directly or indirectly controls, or is under common control with, or is controlled by, such Person.  As used in this definition, "control" (and the correlative terms, "controlled by" and "under common control with") shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise); provided that, in any event, any Person that owns, directly or indirectly, 10% or more of the securities having ordinary voting power for the election of directors or other governing body of a corporation, or 10% or more of the partnership or other ownership interests of any other Person, will be deemed to be an Affiliate of such corporation, partnership or other Person.

"Agreement" means this Term Loan Agreement, either as originally executed or as it may from time to time be supplemented, modified, amended, restated or extended.

"Agreement Regarding Fees" means the Agreement Regarding Fees dated of even date herewith among the Borrowers and Managing Agent.

"Alternate Base Rate" means, the greater of (a) the Reference Rate, or (b) one-half of one percent (0.5%) above the Federal Funds Rate (rounded upwards, if necessary, to the next one-one hundredth of one percent).  The Alternate Base Rate is a reference rate and does not necessarily represent the lowest or best rate being charged to any customer.  Any change in the rate of interest payable hereunder resulting from a change in the Alternate Base Rate shall become effective as of the opening of business on the day on which such change in the Alternate Base Rate becomes effective, without notice or demand of any kind.

"Alternate Base Rate Loan" means a Loan made hereunder and specified to be an Alternate Base Rate Loan in accordance with Article 2.

"Applicable Alternate Base Rate Margin" means, for each Pricing Period, the interest rate margin set forth below (expressed in basis points per annum) opposite the Applicable Pricing Level for that Pricing Period:

	
Applicable
	 	 
	
Pricing Level
	 	
Margin

	
I
	 	
0

	
II
	 	
0

	
III
	 	
0

	
IV
	 	
0

	
V
	 	
25

	
VI
	 	
25

"Applicable LIBOR Rate Margin" means, for each Pricing Period, the interest rate margin set forth below (expressed in basis points per annum) opposite the Applicable Pricing Level for that Pricing Period:

	
Applicable
	 	 
	
Pricing Level
	 	
Margin

	
I
	 	
100.00

	
II
	 	
120.00

	
III
	 	
130.00

	
IV
	 	
150.00

	
V
	 	
162.50

	
VI
	 	
187.50

"Applicable Pricing Level" means (a) for any Pricing Period during which Parent holds a Credit Rating of BBB+/Baa1 (or its equivalent) or better, Pricing Level I, (b) for any Pricing Period during which Parent holds a Credit Rating of BBB/Baa2 (or its equivalent), Pricing Level II, (c) for any Pricing Period during which Parent holds a Credit Rating of BBB-/Baa3 (or its equivalent), Pricing Level III and (d) for any Pricing Period during which Parent does not hold a Credit Rating of BBB-/Baa3 (or its equivalent) or better, the pricing level set forth below opposite the Leverage Ratio as of the last day of the Fiscal Quarter most recently ended prior to the commencement of that Pricing Period:

	
Pricing Level
	 	
Leverage Ratio

	
IV
	 	
Less than .35 to 1.00

	
V
	 	
Equal to or greater than .35 to 1.00 but less than .50 to 1.00

	
VI
	 	
Equal to or greater than .50 to 1.00 but less than or equal to .55 to 1.00;

provided that (a) the Applicable Pricing Level for the initial Pricing Period shall (unless Pricing Level I, Pricing Level II or Pricing Level III is then in effect) be Pricing Level V, (b) in the event that Borrowers do not deliver a Pricing Certificate with respect to any Pricing Period prior to the commencement of such Pricing Period, then until (but only until) such Pricing Certificate is delivered the Applicable Pricing Level for that Pricing Period shall be Pricing Level VI and (c) if any Pricing Certificate is subsequently determined to be in error, then the resulting change in the Applicable Pricing Level shall be made retroactively to the beginning of the relevant Pricing Period.

"Asset Value" means, as of any date of determination and with respect to any improved Real Property owned by a Person that is not under development for the purposes of Section 6.10, an amount equal to (a) the Adjusted NOI of such Person from such Real Property for the period covered by the previous four full consecutive Fiscal Quarters divided by (b) the Capitalization Rate.  Prior to such time as a Borrower or any of its Subsidiaries has owned and operated any Real Property for four full Fiscal Quarters, the Adjusted NOI with respect to such Real Property for the number of full Fiscal Quarters which the Borrower or any of its Subsidiaries has owned and operated such parcel of Real Property shall be adjusted by the applicable Borrower to an annual Adjusted NOI in a manner reasonably acceptable to the Managing Agent.

"Bank" means each bank whose name is set forth in the signature pages of this Agreement and each lender which may hereafter become a party to this Agreement pursuant to Section 11.8.

"Banking Day" means any Monday, Tuesday, Wednesday, Thursday or Friday, other than a day on which banks are authorized or required to be closed in Massachusetts, New York or California.

"Borrowing Base" means, as of any date of determination, the lesser of (a) the maximum amount which, when added to the total outstanding balance of all unsecured Indebtedness of Parent and its Subsidiaries (including the Loans), would not exceed fifty-five percent (55%) of the aggregate Asset Value of the Unencumbered Asset Pool as of such date, and (b) the maximum amount which, when added to the total outstanding balance of all unsecured Indebtedness of Parent and its Subsidiaries (including the Loans), would not cause the "Test Debt Service Coverage Amount" (as hereinafter defined) for the Unencumbered Asset Pool to be less than two (2).  "Test Debt Service Coverage Amount" means at any time determined under this Agreement, an amount obtained by dividing (a) the sum of the aggregate Adjusted NOI from the Unencumbered Asset Pool for the preceding four (4) full Fiscal Quarters, by (b) the annual amount of principal and interest that would be payable on the total outstanding balance of all unsecured Indebtedness of the Parent and its Subsidiaries (including the Loans and any requested Loans) when bearing interest at a rate per annum equal to the then-current annual yield on ten (10) year obligations issued by the United States Treasury most recently prior to the date of determination plus two percent (2.0%) and payable based on a twenty-five year mortgage style amortization schedule (expressed as a mortgage constant percentage).  The Test Debt Service Coverage Amount shall be determined by the Borrowers and shall be satisfactory to the Managing Agent, provided that in the event that, as of any date under this Agreement, the Test Debt Service Coverage Amount is required to be determined hereunder and such determination shall have not been made as provided above, then such amount shall be determined by the Managing Agent.  An example of the calculation of the Test Debt Service Coverage Amount is set forth in Schedule 1.2 attached hereto.  In the event that a Borrower shall have owned a property within the Unencumbered Asset Pool for less than four (4) full consecutive Fiscal Quarters, then for the purposes of performing such calculation, the Adjusted NOI with respect to such property shall be annualized by the applicable Borrower in a manner reasonably acceptable to the Managing Agent.

"Borrowers" means, collectively, (a) Parent, (b) Operating Partnership, (c) QRS, (d) ARE, (e) the other borrowers whose names are set forth on the signature pages of this Agreement  and (f) any other Wholly-Owned Subsidiary of Parent that hereafter executes a Joinder Agreement pursuant to Section 5.13.  Borrowers are jointly and severally obligated with respect to the Obligations.

"Capital Improvement Reserve" means with respect to any Real Property now or hereafter owned by the Borrowers or their Subsidiaries, an annual capital replacement reserve in the amount of thirty cents ($.30) multiplied by the Net Rentable Area contained therein.

"Capital Lease Obligations" means all monetary obligations of a Person under any leasing or similar arrangement which, in accordance with Generally Accepted Accounting Principles, is classified as a capital lease.

"Capitalization Rate" means initially ten percent (10%), as such rate may be changed from time to time as provided in this definition.  The Borrowers may request that the Banks modify the prevailing Capitalization Rate based upon information provided to the Borrowers and the Banks by an independent expert mutually acceptable to Parent and the Managing Agent concerning the prevailing capitalization rate used by sophisticated real estate industry professionals to value properties comparable to those in the Unencumbered Asset Pool for comparable purposes, provided that any change to the Capitalization Rate shall be subject to the prior written approval of the Requisite Banks.

"Cash" means, when used in connection with any Person, all monetary and non-monetary items owned by that Person that are treated as cash in accordance with Generally Accepted Accounting Principles, consistently applied.

"Cash Interest Expense" means Interest Expense that is paid or currently payable in Cash.

"Certificate" means a certificate signed by a Senior Officer or Responsible Official (as applicable) of the Person providing the certificate.

"Change in Control" means (a) any transaction or series of related transactions in which any Unrelated Person or two or more Unrelated Persons acting in concert acquire beneficial ownership (within the meaning of Rule 13d-3(a)(1) under the Securities Exchange Act of 1934, as amended), directly or indirectly, of 40% or more of the outstanding Common Stock, (b) Parent consolidates with or merges into another Person or conveys, transfers or leases its properties and assets substantially as an entirety to any Person or any Person consolidates with or merges into Parent, in either event pursuant to a transaction in which the outstanding Common Stock is changed into or exchanged for cash, securities or other property, with the effect that any Unrelated Person becomes the beneficial owner, directly or indirectly, of 40% or more of Common Stock or that the Persons who were the holders of Common Stock immediately prior to the transaction hold less than 60% of the common stock of the surviving corporation after the transaction, (c) during any period of 24 consecutive months, individuals who at the beginning of such period constituted the board of directors of Parent (together with any new or replacement directors whose election by the board of directors, or whose nomination for election, was approved by a vote of at least a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for reelection was previously so approved) cease for any reason to constitute a majority of the directors then in office, or (d) a "change in control" as defined in any document governing Indebtedness of Parent in excess of $25,000,000 which gives the holders of such Indebtedness the right to accelerate or otherwise require payment of such Indebtedness prior to the maturity date thereof.  For purposes of the foregoing, the term "Unrelated Person" means any Person other than (i) a Subsidiary of Parent, (ii) an employee stock ownership plan or other employee benefit plan covering the employees of Parent and its Subsidiaries or (iii) any Person that held Common Stock on the day prior to the effective date of Parent's registration statement under the Securities Act of 1933 covering the initial public offering of Common Stock.

"Closing Date" means the time and Banking Day on which the conditions set forth in Section 8.1 are satisfied or waived.  The Managing Agent shall notify Borrowers and the Banks of the date that is the Closing Date.

"Code" means the Internal Revenue Code of 1986, as amended or replaced and as in effect from time to time.

"Commitment" means $50,000,000.00.  The respective Pro Rata Shares of the Banks with respect to the Commitment are set forth in Schedule 1.1.

"Commitment Assignment and Acceptance" means a commitment assignment and acceptance substantially in the form of Exhibit A.

"Common Stock" means the common stock of Parent or its successor.

"Compliance Certificate" means a certificate in the form of Exhibit E, properly completed and signed by a Senior Officer of Borrowers.

"Contractual Obligation" means, as to any Person, any provision of any outstanding security issued by that Person or of any material agreement, instrument or undertaking to which that Person is a party or by which it or any of its Property is bound.

"Controlled Entity" means a Person (a) that is a Subsidiary of Parent, (b) that is a general partnership or a limited partnership in which a Wholly-Owned Subsidiary is the sole managing general partner and such managing general partner has the sole power to (i) sell all or substantially all of the assets of such Person, (ii) incur Indebtedness in the name of such Person, (iii) grant a Lien on all or any portion of the assets of such Person and (iv) otherwise generally manage the business and assets of such Person or (c) that is a limited liability company for which a Wholly-Owned Subsidiary is the sole manager and such manager has the sole power to do the acts described in subclauses (i) through (iv) of clause (b) above.

"Conversion Request" means a notice given by the Borrowers to the Managing Agent of their elections to convert or continue a Loan in accordance with Section2.2.

"Credit Rating" means, as of any date of determination, the higher of the credit ratings (or their equivalents) then assigned to Parent's long-term senior unsecured debt by either of the Rating Agencies; provided that any credit rating so assigned by a Rating Agency shall be deemed for this purpose to include all lower credit ratings of such Rating Agency.  For purposes of the foregoing, "Rating Agencies" means (a) Standard & Poor's Rating Group (a division of McGraw Hill, Inc.) ("S&P") and its successors, and (b) Moody's Investor Services, Inc. ("Moody's) and its successors.  A credit rating of BBB- from S&P is equivalent to a credit rating of Baa3 from Moody's and vice versa.  A credit rating of BBB from S&P is equivalent to a credit rating of Baa2 from Moody's and vice versa.  It is the intention of the parties that if Parent shall only obtain a credit rating from one of the Rating Agencies without seeking a credit rating from the other of the Rating Agencies, the Borrowers shall be entitled to the benefit of the Pricing Level for such credit rating.  If Parent shall have obtained a credit rating from both of the Rating Agencies, the higher of the two ratings shall control, provided that the lower rating is only one level below that of the higher rating.  If the lower rating is more than one level below that of the higher credit rating, the lower credit rating shall control.  In the event that Parent shall have obtained a credit rating from both of the Rating Agencies and shall thereafter lose such rating from one of the Rating Agencies, the Parent shall be deemed for the purposes hereof not to have a credit rating.  If at any time either of the Rating Agencies shall no longer perform the functions of a securities rating agency, then the Borrowers and the Managing Agent shall promptly negotiate in good faith to agree upon a substitute rating agency or agencies (and to correlate the system of ratings of each substitute rating agency with that of the rating agency being replaced), and pending such amendment, the Credit Rating of the other of the Rating Agencies, if one has been provided, shall continue to apply.

"Debt Offering" means the issuance and sale by any Borrower of any debt securities of such Borrower.

"Debt Service" means for any period, the sum of all Interest Charges and mandatory or regularly scheduled principal payments due and payable during such period excluding any balloon payments due upon maturity of any indebtedness.  Debt Service shall include the portion of rent payable by a Person during such period under Capital Lease Obligations that should be treated as principal in accordance with Generally Accepted Accounting Principles.

"Debt Service Coverage" means, as of the last day of each Fiscal Quarter, the ratio of (a) Adjusted EBITDA for the fiscal period consisting of that Fiscal Quarter and the three immediately preceding Fiscal Quarters to (b) Debt Service of the Parent and its Subsidiaries for that fiscal period.

"Debtor Relief Laws" means the Bankruptcy Code of the United States of America, as amended from time to time, and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws from time to time in effect affecting the rights of creditors generally.

"Default" means any event that, with the giving of any applicable notice or passage of time specified in Section 9.1, or both, would be an Event of Default.

"Default Rate" means the interest rate prescribed in Section 3.9.

"Designated Deposit Account" means a deposit account to be maintained by Borrowers with Fleet or one of its Affiliates, as from time to time designated by Borrowers by written notification to the Managing Agent.

"Development Investments" shall have the meaning contained in Section 6.10.

"Disqualified Stock" means any capital stock, warrants, options or other rights to acquire capital stock (but excluding any debt security which is convertible, or exchangeable, for capital stock), which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the Maturity Date.

"Distribution" means, with respect to any shares of capital stock or any warrant or option to purchase an equity security or other equity security or interest issued by a Person, (i) the retirement, redemption, purchase or other acquisition for Cash or for Property by such Person of any such security or interest, (ii) the declaration or (without duplication) payment by such Person of any dividend in Cash or in Property on or with respect to any such security or interest, (iii) any Investment by such Person in the holder of 5% or more of any such security or interest if a purpose of such Investment is to avoid characterization of the transaction as a Distribution and (iv) any other payment in Cash or Property by such Person constituting a distribution under applicable Laws with respect to such security or interest.

"Dollars" or "$" means United States dollars.

"Domestic Lending Office" shall mean, initially, the office of each Bank designated as such on Schedule 1 hereto; thereafter, such other office of such Bank, if any, located within the United States that will be making or maintaining Alternate Base Rate Loans.

"Domestic Reference Bank" means Fleet or such other Bank as may be appointed by the Managing Agent with the approval of Parent (which shall not be unreasonably withheld).

"Drawdown Date" means the date on which any loan is made or is to be made, and the date on which any Loan is converted or combined in accordance with Section2.2.

"EBITDA" means, with respect to any Person (or any asset of a Person) for any fiscal period, the sum of (a) the Net Income of such Person (or attributable to such asset) for that period, plus (b) any non-operating non-recurring loss reflected in such Net Income, minus (c) any non-operating non-recurring gain reflected in such Net Income, plus (d) Interest Expense of such Person for that period, plus (e) the aggregate amount of federal and state taxes on or measured by income of such Person for that period (whether or not payable during that period), plus (f) depreciation, amortization and all other non-cash expenses (including non-cash officer compensation) of such Person for that period, in each case as determined in accordance with Generally Accepted Accounting Principles.

"Eligible Assignee" means (a) another Bank, (b) with respect to any Bank, any Affiliate of that Bank, (c) any commercial bank having a combined capital and surplus of $100,000,000 or more, (d) any (i) savings bank, savings and loan association or similar financial institution or (ii) insurance company engaged in the business of writing insurance which, in either case (A) has a net worth of $200,000,000 or more, (B) is engaged in the business of lending money and extending credit under credit facilities substantially similar to those extended under this Agreement and (C) is operationally and procedurally able to meet the obligations of a Bank hereunder to the same degree as a commercial bank and (e) any other financial institution (including a mutual fund or other fund) having total assets of $250,000,000 or more which meets the requirements set forth in subclauses (B) and (C) of clause (d) above; provided that each Eligible Assignee must either (a) be organized under the Laws of the United States of America, any State thereof or the District of Columbia or (b) be organized under the Laws of the Cayman Islands or any country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of such a country, and (i) act hereunder through a branch, agency or funding office located in the United States of America and (ii) be exempt from withholding of tax on interest and deliver the documents related thereto pursuant to Section 11.21.

"Employee Plan" means any (a) employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (b) any plan (as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975 of the Code, (c) any entity the underlying assets of which include plan assets (as defined in 29 C.F.R. Section 2510.3-101 or otherwise under ERISA) by reason of a plan's investment in such entity (including an insurance company general account), or (d) a governmental plan (as defined in Section 3(32) of ERISA or Section 414(d) of the Code) organized in a jurisdiction within the United States of America having prohibitions on transactions with such governmental plan substantially similar to those contained in Section 406 of ERISA or Section 4975 of the Code.

"Equity Offering" means the issuance and sale by any Borrower of any equity securities of such Borrower.

"ERISA" means the Employee Retirement Income Security Act of 1974, and any regulations issued pursuant thereto, as amended or replaced and as in effect from time to time.

"ERISA Affiliate" means each Person (whether or not incorporated) which is required to be aggregated with Parent pursuant to Section 414 of the Code.

"Event of Default" shall have the meaning provided in Section 9.1.

"Federal Funds Rate" means, as of any date of determination, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Banking Day, for the next preceding Banking Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Banking Day, the average of the quotations for such day on such transactions received by the Managing Agent from three (3) Federal funds brokers of recognized standing selected by the Managing Agent.  

"Fleet" means Fleet National Bank.

"Fiscal Quarter" means the fiscal quarter of Borrowers ending on each March 31, June 30, September 30 and December 31.

"Fiscal Year" means the fiscal year of Borrowers ending on each December 31.

"Fixed Charge Coverage" means, as of the last day of each Fiscal Quarter, the ratio of (a) Adjusted EBITDA for the fiscal period consisting of that Fiscal Quarter and the three immediately preceding Fiscal Quarters to (b) the sum of (i) Debt Service of the Parent and its Subsidiaries for such fiscal period plus (ii) all Preferred Distributions of Parent and its Subsidiaries made during such fiscal period.

"Funds Available for Distribution" means with respect to any fiscal period, an amount equal to Funds From Operations, minus Net Capital Expenditures of Parent and its Subsidiaries incurred during such fiscal period.

"Funds From Operations" means, with respect to any fiscal period, (a) the Net Income of Parent for that period, plus (b) any loss resulting from the restructuring of Indebtedness, sale of Property or other non-operating non-recurring cause during that period, minus (c) any gain resulting from the restructuring of Indebtedness, sale of Property or other non-operating non-recurring cause during that period, plus (d) depreciation and amortization of Revenue-Producing Properties (including with respect to trade fixtures and tenant improvements which are a part thereof and capitalized leasing expenses, such as leasing commissions and tenant improvement allowances), and adjusted to take into account (i) the results of operations of any unconsolidated Related Ventures calculated on the same basis and (ii) any unusual and non-recurring expense which otherwise would materially distort a comparative evaluation of Funds From Operation for different fiscal periods.

"Generally Accepted Accounting Principles" means, as of any date of determination, accounting principles (a) set forth as generally accepted in then currently effective Opinions of the Accounting Principles Board of the American Institute of Certified Public Accountants, (b) set forth as generally accepted in then currently effective Statements of the Financial Accounting Standards Board or (c) that are then approved by such other entity as may be approved by a significant segment of the accounting profession in the United States of America.  The term "consistently applied," as used in connection therewith, means that the accounting principles applied are consistent in all material respects with those applied at prior dates or for prior periods.

"Governmental Agency" means (a) any international, foreign, federal, state, county or municipal government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body or (c) any court or administrative tribunal of competent jurisdiction.

"Guaranty Obligation" means, as to any Person, any (a) guarantee by that Person of Indebtedness of, or other obligation performable by, any other Person or (b) assurance given by that Person to an obligee of any other Person with respect to the performance of an obligation by, or the financial condition of, such other Person, whether direct, indirect or contingent, including any purchase or repurchase agreement covering such obligation or any collateral security therefor, any agreement to provide funds (by means of loans, capital contributions or otherwise) to such other Person, any agreement to support the solvency or level of any balance sheet item of such other Person or any "keep-well" or other arrangement of whatever nature given for the purpose of assuring or holding harmless such obligee against loss with respect to any obligation of such other Person; provided, however, that the term Guaranty Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business.  The amount of any Guaranty Obligation in respect of Indebtedness shall be deemed to be an amount equal to the stated or determinable amount of the related Indebtedness (unless the Guaranty Obligation is limited by its terms to a lesser amount, in which case to the extent of such amount) or, if not stated or determinable, the reasonably anticipated liability in respect thereof as determined by the Person in good faith pursuant to Generally Accepted Accounting Principles.

"Hazardous Materials" means substances defined as "hazardous substances" pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 9601 et seq., or as "hazardous", "toxic" or "pollutant" substances or as "solid waste" pursuant to the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or as "friable asbestos" pursuant to the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq. or any other applicable Hazardous Materials Law, in each case as such Laws are amended from time to time.

"Hazardous Materials Laws" means all Laws governing the treatment, transportation or disposal of Hazardous Materials applicable to any of the Real Property.

"Indebtedness" means, as to any Person (without duplication), (a) indebtedness of such Person for borrowed money or for the deferred purchase price of Property (excluding trade and other accounts payable in the ordinary course of business in accordance with ordinary trade terms), including any Guaranty Obligation, (b) indebtedness of such Person of the nature described in clause (a) that is non-recourse to the credit of such Person but is secured by assets of such Person, to the extent of the fair market value of such assets as determined in good faith by such Person, (c) Capital Lease Obligations of such Person, (d) indebtedness of such Person arising under bankers' acceptance facilities or under facilities for the discount of accounts receivable of such Person, (e)  the undrawn face amount of any letters of credit issued for the account of such Person, (f) any net obligations of such Person under Swap Agreements, (g) all liabilities secured by any mortgage, pledge, security interest, lien, charge or other encumbrance existing on property owned or acquired subject thereto, whether or not the liability secured thereby shall have been assumed, and (h) without duplication, a Person's pro rata share of any of the above-described obligations of its unconsolidated Affiliates.  Indebtedness shall include all obligations, contingent and otherwise, that in accordance with Generally Accepted Accounting Principles should be classified upon the obligor's balance sheet as liabilities, including all of the foregoing whether or not so classified.

"Initial Pool Properties" means the Revenue-Producing Properties described in Schedule 4.18.

"Intangible Assets" means assets that are considered intangible assets under Generally Accepted Accounting Principles, including customer lists, goodwill, copyrights, trade names, trademarks and patents.

"Interest Charges" means, as of the last day of any fiscal period, the sum of (a) Cash Interest Expense of a Person plus (b) all interest currently payable by a Person in Cash incurred during that fiscal period which is capitalized under Generally Accepted Accounting Principles plus (c) a Person's Proportional Share of the Cash Interest Expense and capitalized interest payable in Cash of Related Ventures during that fiscal period.

"Interest Expense" means, with respect to any Person and as of the last day of any fiscal period, the sum of (a) all interest, fees, charges and related expenses paid or payable (without duplication) for that fiscal period by that Person to a lender in connection with borrowed money (including any obligations for fees, charges and related expenses payable to the issuer of any letter of credit) or the deferred purchase price of assets that are considered "interest expense" under Generally Accepted Accounting Principles plus (b) the portion of rent paid or payable (without duplication) for that fiscal period by that Person under Capital Lease Obligations that should be treated as interest in accordance with Financial Accounting Standards Board Statement No. 13 minus  (plus) (c) amounts received (paid) under Swap Agreements.

"Interest Period" means, with respect to any LIBOR Rate Loan, the related LIBOR Period.

"Investment" means, when used in connection with any Person, any investment by or of that Person, whether by means of purchase or other acquisition of stock or other securities of any other Person or by means of a loan, advance creating a debt, capital contribution, guaranty or other debt or equity participation or interest in any other Person, including any partnership and joint venture interests of such Person.  The amount of any Investment shall be the amount actually invested (minus any return of capital with respect to such Investment which has actually been received in Cash or has been converted into Cash), without adjustment for subsequent increases or decreases in the value of such Investment.

"Joinder Agreement" means the joinder agreement with respect to this Agreement to be executed and delivered pursuant to Section 5.13 by any additional Borrower in the form of Exhibit F, either as originally executed or as it may from time to time be supplemented, modified, amended, extended or supplanted.

"Laws" means, collectively, all international, foreign, federal, state and local statutes, treaties, rules, regulations, ordinances, codes and administrative or judicial precedents.

"Leverage Ratio" means, as of the last day of each Fiscal Quarter, the ratio of (a) Total Liabilities of Parent and its Subsidiaries as of that date to (b) Adjusted Tangible Assets as of that date.

"LIBOR Banking Day" means any Banking Day on which dealings in Dollar deposits are conducted by and among banks in the London interbank market.

"LIBOR Lending Office" means, as to each Bank, its office or branch so designated by written notice to Borrowers and the Managing Agent as its LIBOR Lending Office.  If no LIBOR Lending Office is designated by a Bank, its LIBOR Lending Office shall be its office at its address for purposes of notices hereunder.

"LIBOR Obligations" means eurocurrency liabilities, as defined in Regulation D or any comparable regulation of any Governmental Agency having jurisdiction over any Bank.

"LIBOR Period" means, as to each LIBOR Rate Loan, the period commencing on the Closing Date or the date specified by Borrowers in the applicable Conversion Request, as applicable, and ending 1, 2, 3 or 6 months (or, with the written consent of all of the Banks, any other period) thereafter, as specified by Borrowers in the applicable Conversion Request; provided that:

(a)The first day of any LIBOR Period shall be a LIBOR Banking Day;

(b)Any LIBOR Period that would otherwise end on a day that is not a LIBOR Banking Day shall be extended to the next succeeding LIBOR Banking Day unless such LIBOR Banking Day falls in another calendar month, in which case such LIBOR Period shall end on the next preceding LIBOR Banking Day; and

(c)No LIBOR Period shall extend beyond the Maturity Date.

"LIBOR Rate" means, as applicable to any LIBOR Period, the rate per annum (rounded upwards, if necessary, to the nearest 1/100th of one percent) as determined on the basis of the offered rates for deposits in Dollars, for the period of time comparable to such LIBOR Period which appears on the Telerate page 3750 as of 11:00 a.m. London time on the day that is two (2) LIBOR Banking Days preceding the first day of such LIBOR Period; provided, however, if the rate described above does not appear on the Telerate System on any applicable interest determination date, LIBOR Rate shall be the rate (rounded upwards as described above, if necessary) for deposits in Dollars for a period substantially equal to the LIBOR Period on the Reuters Page "LIBO" (or such other page as may replace the LIBO Page on that service for the purpose of displaying such rates), as of 11:00 a.m. (London Time), on the day that is two (2) LIBOR Banking Days prior to the beginning of such LIBOR Period.  If both the Telerate and Reuters systems are unavailable, then the rate for that date will be determined on the basis of the offered rates for deposits in Dollars for a period of time comparable to such LIBOR Period which are offered by four major banks in the London interbank market at approximately 11:00 a.m. London time, on the day that is two (2) LIBOR Banking Days preceding the first day of such LIBOR Period as selected by Managing Agent.  The principal London office of each of the four major London banks will be requested to provide a quotation of its U.S. dollar deposit offered rate.  If at least two such quotations are provided, the rate for that date will be the arithmetic mean of the quotations.  If fewer than two quotations are provided, the rate for that date will be determined on the basis of the rates quoted for loans in Dollars to leading European banks for a period of time comparable to such LIBOR Period offered by major banks in New York City at approximately 11:00 a.m. (New York City time), on the day that is two (2) LIBOR Banking Days preceding the first day of such LIBOR Period.  In the event that Managing Agent is unable to obtain any such quotation as provided above, it will be deemed that the LIBOR Rate pursuant to a LIBOR Loan cannot be determined and the provisions of Section3.8 shall apply.  In the event that the Board of Governors of the Federal Reserve System shall impose a Reserve Percentage with respect to LIBOR Rate deposits of Managing Agent, then for any period during which such Reserve Percentage shall apply, LIBOR Rate shall be equal to the amount determined above divided by an amount equal to 1 minus the Reserve Percentage.

"LIBOR Rate Loan" means a Loan made hereunder and specified to be a LIBOR Rate Loan in accordance with Article 2.

"LIBOR Reference Bank" means Fleet or such other Bank as may be appointed by the Managing Agent with the approval of Parent (which shall not be unreasonably withheld).

"Lien" means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, lien or charge of any kind, whether voluntarily incurred or arising by operation of Law or otherwise, affecting any Property, including any conditional sale or other title retention agreement, any lease in the nature of a security interest, and/or the filing of any financing statement (other than a precautionary financing statement with respect to a lease that is not in the nature of a security interest) under the Uniform Commercial Code or comparable Law of any jurisdiction with respect to any Property.

"Loan" means any loan made by the Banks hereunder.

"Loans" means the aggregate loans made by the Banks hereunder.

"Loan Documents" means, collectively, this Agreement, the Notes, each Joinder Agreement and any other agreements of any type or nature hereafter executed and delivered by Borrowers to the Managing Agent or to any Bank in any way relating to or in furtherance of this Agreement, in each case either as originally executed or as the same may from time to time be supplemented, modified, amended, restated, extended or supplanted.

"Majority Banks" means, as of any date of determination, Banks having in the aggregate more than 50% of the Commitment then in effect.

"Managing Agent" means Fleet, when acting in its capacity as the Managing Agent under any of the Loan Documents, or any successor Managing Agent.

"Managing Agent's Office" means the Managing Agent's address at 100 Federal Street, Boston, Massachusetts  02110, or such other address as the Managing Agent hereafter may designate by written notice to Borrowers and the Banks.  With respect to notices to be sent to Fleet as Managing Agent with respect to Requests for Loans, Conversion Requests, and any other requests, such notices shall be sent to the office of Managing Agent located in Atlanta, Georgia as specified in this Agreement, or at such other office as Managing Agent may designate by written notice to the Banks and the Borrowers.

"Margin Stock" means "margin stock" as such term is defined in Regulation T, U or X.

"Material Adverse Effect" means any set of circumstances or events which (a) has had or could reasonably be expected to have any material adverse effect whatsoever upon the validity or enforceability of any Loan Document (other than as a result of any action or inaction of the Managing Agent or any Bank), (b) has been or could reasonably be expected to be material and adverse to the business or condition (financial or otherwise) of Borrowers or (c) has materially impaired or could reasonably be expected to materially impair the ability of Borrowers to perform the Obligations.

"Maturity Date" means February 11, 2003, or such earlier date as the Revolver may mature.

"Monthly Payment Date" means the first day of each calendar month.

"Mortgageable Ground Lease" means any lease (a) which is a direct lease granted by the fee owner of real property, (b) which has a remaining term (calculated one time only from the later of the Closing Date or the date the property subject to such lease becomes part of the Qualified Unencumbered Asset Pool) of not less than thirty (30) years, including extension options which are exercisable solely at the discretion of a Borrower, (c) under which no material default has occurred and is continuing, and (d) with respect to which a security interest may be granted without the consent of the lessor.

"Multiemployer Plan" means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA to which Borrowers or any of their ERISA Affiliates contribute or are obligated to contribute.

"Negative Pledge" means a Contractual Obligation that contains a covenant binding on Borrowers that prohibits Liens on any of  their Property, other than (a) any such covenant contained in a Contractual Obligation granting or relating to a particular Lien which affects only the Property that is the subject of such Lien and (b) any such covenant that does not apply to Liens which may secure the Obligations now or in the future.

"Net Capital Expenditures" means with respect to any Person for any fiscal period, an amount equal to the sum of the amount of capital expenditures paid in cash by such Person in order to maintain the general condition and operation of its Real Property during such fiscal period, excluding any non-recurring capital expenditures made to update or enhance building infrastructure or building systems on such Real Property, plus the amount of leasing costs (including leasing commissions and standard tenant improvements) paid in cash by such Person with respect to its Real Property during such fiscal period.

"Net Income" means, with respect to any Person and with respect to any fiscal period, the net income of that Person for that period, determined in accordance with Generally Accepted Accounting Principles, consistently applied.

"Non-Recourse Debt" means Indebtedness of Parent or any of its Subsidiaries for which the liability of Parent or such Subsidiary (except with respect to fraud, Hazardous Materials Laws liability and other customary exceptions) either is contractually limited to collateral securing such Indebtedness or is so limited by operation of Law.

"Net Rentable Area" means with respect to any Real Property, the floor area of any buildings, structures or improvements available for leasing to tenants (excluding storage lockers and parking spaces) determined in accordance with the Rent Roll for such Real Property, the manner of such determination to be consistent for all Real Property unless otherwise approved by the Managing Agent.

"NOI" means, with respect to any Revenue-Producing Property and with respect to any fiscal period, the sum of (a) the net income of that Revenue-Producing Property for that period, plus (b) Interest Expense of that Revenue-Producing Property for that period, plus (c) the aggregate amount of federal and state taxes on or measured by income of that Revenue-Producing Property for that period (whether or not payable during that period), plus (d) depreciation, amortization and all other non-cash expenses of that Revenue-Producing Property for that period, in each case as determined in accordance with Generally Accepted Accounting Principles.

"Notes" means any of the promissory notes made by the Borrowers to a Bank evidencing Loans under that Bank's Pro Rata Share of the Commitment substantially in the form of Exhibit "G" either as originally executed or as the same may from time to time be supplemented, modified, amended, renewed, extended or supplanted.

"Obligations" means all present and future obligations of every kind or nature of Borrowers at any time and from time to time owed to the Managing Agent or the Banks or any one or more of them, under any one or more of the Loan Documents, whether due or to become due, matured or unmatured, liquidated or unliquidated, or contingent or noncontingent, including obligations of performance as well as obligations of payment, and including interest that accrues after the commencement of any proceeding under any Debtor Relief Law by or against Borrowers.

"Opinions of Counsel" means the favorable written legal opinions of (a) Ballard Spahr Andrews & Ingersoll, LLP, special Maryland counsel to Borrowers and (b) Skadden, Arps, Slate, Meagher & Flom, LLP, special counsel to Borrowers, substantially in the form of Exhibits I-1 and I-2 , respectively, together with copies of all factual certificates and legal opinions delivered to such counsel in connection with such opinion upon which such counsel has relied.

"Parent's Proportional Share" means, with respect to any Related Venture, the percentage of the direct and indirect equity ownership interest of Parent in the Related Venture.

"Party" means any Person other than the Managing Agent and the Banks, which now or hereafter is a party to any of the Loan Documents.

"PBGC" means the Pension Benefit Guaranty Corporation or any successor thereof established under ERISA.

"Pension Plan" means any "employee pension benefit plan" (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, which is subject to Title IV of ERISA and is maintained by Borrowers or to which Borrowers contribute or have an obligation to contribute.

"Permitted Encumbrances" means:

(a)Inchoate Liens incident to construction on or maintenance of Property; or Liens incident to construction on or maintenance of Property now or hereafter filed of record for which adequate reserves have been set aside (or deposits made pursuant to applicable Law) and which are being contested in good faith by appropriate proceedings and have not proceeded to judgment, provided that, by reason of nonpayment of the obligations secured by such Liens, no such Property is subject to a material impending risk of loss or forfeiture;

(b)Liens for taxes and assessments on Property which are not yet past due; or Liens for taxes and assessments on Property for which adequate reserves have been set aside and are being contested in good faith by appropriate proceedings and have not proceeded to judgment, provided that, by reason of nonpayment of the obligations secured by such Liens, no such Property is subject to a material impending risk of loss or forfeiture;

(c)defects and irregularities in title to any Property which in the aggregate do not materially impair the fair market value or use of the Property for the purposes for which it is or may reasonably be expected to be held;

(d)easements, exceptions, reservations, or other agreements for the purpose of pipelines, conduits, cables, wire communication lines, power lines and substations, streets, trails, walkways, drainage, irrigation, water, and sewerage purposes, dikes, canals, ditches, the removal of oil, gas, coal, or other minerals, and other like purposes affecting Property which in the aggregate do not materially burden or impair the fair market value or use of such Property for the purposes for which it is or may reasonably be expected to be held;

(e)easements, exceptions, reservations, or other agreements for the purpose of facilitating the joint or common use of Property in or adjacent to a shopping center or similar project affecting Property which in the aggregate do not materially burden or impair the fair market value or use of such Property for the purposes for which it is or may reasonably be expected to be held;

(f)rights reserved to or vested in any Governmental Agency to control or regulate, or obligations or duties to any Governmental Agency with respect to, the use of any Property;

(g)rights reserved to or vested in any Governmental Agency to control or regulate, or obligations or duties to any Governmental Agency with respect to, any right, power, franchise, grant, license, or permit;

(h)present or future zoning laws and ordinances or other laws and ordinances restricting the occupancy, use, or enjoyment of Property  which in the aggregate do not materially burden or impair the fair market value or use of such Property for the purposes for which it is or may reasonably be expected to be held;

(i)statutory Liens, other than those described in clauses (a) or (b) above, arising in the ordinary course of business (but not in connection with the incurrence of any Indebtedness) with respect to obligations which are not delinquent or are being contested in good faith, provided that, if delinquent, adequate reserves have been set aside with respect thereto and, by reason of nonpayment, no Property is subject to a material impending risk of loss or forfeiture;

(j)covenants, conditions, and restrictions affecting the use of Property which may not give rise to any Lien against such Property and which in the aggregate do not materially impair the fair market value or use of the Property for the purposes for which it is or may reasonably be expected to be held;

(k)rights of tenants as tenants only under leases and rental agreements covering Property entered into in the ordinary course of business of the Person owning such Property;

(l)Liens consisting of pledges or deposits to secure obligations under workers' compensation laws or similar legislation, including Liens of judgments thereunder which are not currently dischargeable;

(m)Liens consisting of pledges or deposits of Property to secure performance in connection with operating leases made in the ordinary course of business, provided the aggregate value of all such pledges and deposits in connection with any such lease does not at any time exceed 20% of the annual fixed rentals payable under such lease;

(n)Liens consisting of deposits of Property to secure bids made with respect to, or performance of, contracts (other than contracts creating or evidencing an extension of credit to the depositor);

(o)Liens consisting of any right of offset, or statutory bankers' lien, on bank deposit accounts maintained in the ordinary course of business so long as such bank deposit accounts are not established or maintained for the purpose of providing such right of offset or bankers' lien;

(p)Liens consisting of deposits of Property to secure statutory obligations of Borrowers;

(q)Liens created by or resulting from any litigation or legal proceeding in the ordinary course of business which is currently being contested in good faith by appropriate proceedings, provided that, adequate reserves have been set aside and no material Property is subject to a material impending risk of loss or forfeiture; and

(r)other non-consensual Liens incurred in the ordinary course of business but not in connection with the incurrence of any Indebtedness, which do not individually involve amounts in excess of $200,000.00 or in the aggregate involve amounts in excess of $500,000.00.

"Permitted Right of Others" means a Right of Others consisting of (a) an interest (other than a legal or equitable co-ownership interest, an option or right to acquire a legal or equitable co-ownership interest and any interest of a ground lessor under a ground lease), that does not materially impair the fair market value or use of Property for the purposes for which it is or may reasonably be expected to be held, (b) an option or right to acquire a Lien that would be a Permitted Encumbrance, (c) the subordination of a lease or sublease in favor of a financing entity and (d) a license, or similar right, of or to Intangible Assets granted in the ordinary course of business.

"Person" means any individual or entity, including a trustee, corporation, limited liability company, general partnership, limited partnership, joint stock company, trust, estate, unincorporated organization, business association, firm, joint venture, Governmental Agency, or other entity.

"Preferred Distributions" means for any period, the amount of any and all Distributions due and payable to the holders of any form of preferred stock (whether perpetual, convertible or otherwise) or other ownership or beneficial interest in Parent or any of its Subsidiaries that entitles the holders thereof to preferential payment or distribution priority with respect to dividends, assets or other payments over the holders of any other stock or other ownership or beneficial interest in such Person.

"Pricing Certificate" means a certificate in the form of Exhibit J, properly completed and signed by a Senior Officer of Borrowers.

"Pricing Period" means (a) the period commencing on the Closing Date and ending on December 1, 2001, (b) the period commencing on each December 2, and ending on the next following March 1, (c) the period commencing on each March 2, and ending on the next following June 1, (d) the period commencing on each June 2 and ending on the next following September 1, and (e) the period commencing on each September 2 and ending on the next following December 1.

"Property" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

"Pro Rata Share" means, with respect to each Bank, the percentage of the Commitment set forth opposite the name of that Bank on Schedule 1.1, as such percentage may be increased or decreased pursuant to a Commitment Assignment and Acceptance executed in accordance with Section 11.8.

"Qualified Unencumbered Asset Pool Property" means a Revenue-Producing Property that (a) is wholly owned in fee simple absolute or a leasehold interest pursuant to a Mortgageable Ground Lease by Parent or any other Borrower that is a Wholly-Owned Subsidiary, (b) is occupied or available for occupancy, (c) to the best of Borrowers' knowledge and belief, does not have any title, survey, environmental or other defects that would give rise to a materially adverse effect as to the value, use of or ability to sell or refinance such property, (d) is Unencumbered, and (e) would not cause the Borrowers to be in violation of the covenant set forth in Section 5.17.

"Quarterly Payment Date" means each July 1, October 1, January 1 and April 1.

"Real Property" means, as of any date of determination, all real property then or theretofore owned, leased or occupied by any of Borrowers.

"Reference Rate" means the variable annual rate of interest announced from time to time by the Domestic Reference Bank in Boston, Massachusetts (or other headquarters city of the Domestic Reference Bank), as its "prime rate."

"Regulation D" means Regulation D, as at any time amended, of the Board of Governors of the Federal Reserve System, or any other regulation in substance substituted therefor.

"Regulations T, U and X" means Regulations T, U and X, as at any time amended, of the Board of Governors of the Federal Reserve System, or any other regulations in substance substituted therefor.

"Related Venture" means a corporation, limited liability company, partnership or other Person that owns one or more Revenue-Producing Properties and which is not a Wholly-Owned Subsidiary.

"Rent Roll" means a report prepared by a Borrower showing for the Real Property owned by it, its occupancy, lease expiration dates, lease rent and other information in substantially the form presented to the Managing Agent prior to the date hereof or in such other form as may have been approved by the Managing Agent.

"Request for Loan" means a written request for a Loan substantially in the form of Exhibit K, signed by a Responsible Official of any of the Borrowers, on behalf of Borrowers, and properly completed to provide all information required to be included therein.

"Requirement of Law" means, as to any Person, the articles or certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any Law, or judgment, award, decree, writ or determination of a Governmental Agency, 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.

"Requisite Banks" means, as of any date of determination, Banks having in the aggregate 67% or more of the Commitment then in effect.

"Reserve Percentage" means for any day with respect to a LIBOR Rate Loan, the maximum rate (expressed as a decimal) at which any lender subject thereto would be required to maintain reserves (including, without limitation, all base, supplemental, marginal and other reserves) under Regulation D of the Board of Governors of the Federal Reserve System (or any successor or similar regulations relating to such reserve requirements) against "Eurocurrency Liabilities" (as that term is used in Regulation D or any successor or similar regulation), if such liabilities were outstanding.  The Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in the Reserve Percentage.

"Responsible Official" means (a) when used with reference to a Person other than an individual, any corporate officer of such Person, general partner or managing member of such Person, corporate officer of a corporate general partner or managing member of such Person, or corporate officer of a corporate general partner of a partnership that is a general partner of such Person or corporate managing member of a limited liability company that is a managing member of such Person, or any other responsible official thereof duly acting on behalf thereof, and (b) when used with reference to a Person who is an individual, such Person.  The Banks shall be entitled to conclusively rely upon any document or certificate that is signed or executed by a Responsible Official of Parent or any of its Subsidiaries as having been authorized by all necessary corporate, partnership and/or other action on the part of Parent or such Subsidiary.

"Revenue-Producing Property" means an identifiable improved real estate property that is utilized principally for office, office/laboratory, research or manufacturing/warehouse purposes (including the underlying real property and all appurtenant real property rights) or for such other purposes as the Requisite Banks may approve which produces revenue to a Borrower or its Subsidiary.

"Revolver" means that certain Second Amended and Restated Revolving Loan Agreement dated as of February 11, 2000, among the Borrowers, Fleet National Bank (formerly known as BankBoston, N.A.), individually and as managing agent, and the other lending institutions from time to time parties thereto, as the same may from time to time be supplemented, modified, amended, restated or extended.

"Revolver Loan Documents" means collectively all documents, instruments and agreements evidencing, securing or otherwise relating to the Revolver.

"Right of Others" means, as to any Property in which a Person has an interest, any legal or equitable right, title or other interest (other than a Lien) held by any other Person in that Property, and any option or right held by any other Person to acquire any such right, title or other interest in that Property, including any option or right to acquire a Lien; provided, however, that (a) no covenant restricting the use or disposition of Property of such Person contained in any Contractual Obligation of such Person and (b) no provision contained in a contract creating a right of payment or performance in favor of a Person that conditions, limits, restricts, diminishes, transfers or terminates such right shall be deemed to constitute a Right of Others.

"Secured Debt" means Indebtedness of Parent or any of its Subsidiaries (including Indebtedness of a Related Venture which is the subject of a Guaranty Obligation of Parent or a Subsidiary of Parent or, if such Person is a partnership, of which Parent or a Subsidiary of Parent is a general partner, Parent's or such Subsidiaries' pro rata share of any such Indebtedness of unconsolidated Persons) that is secured by a Lien or is subject to a Negative Pledge.

"Senior Officer" means (a) the chief executive officer, (b) the chairman or (c) the chief financial officer, in each case of any of the Borrowers or of any of their corporate general partners or managing members, as applicable.

"Special LIBOR Circumstance" means the application or adoption after the Closing Date of any Law or interpretation, or any change therein or thereof, or any change in the interpretation or administration thereof by any Governmental Agency, central bank or comparable authority charged with the interpretation or administration thereof, or compliance by any Bank or its LIBOR Lending Office with any request or directive (whether or not having the force of Law) of any such Governmental Agency, central bank or comparable authority.

"Stockholders' Equity" means, as of any date of determination, the Adjusted Tangible Assets of the Parent and its Subsidiaries as of that date minus Total Liabilities of Parent and its Subsidiaries as of such date.

"Subsidiary" means, as of any date of determination and with respect to any Person, (a) any corporation, limited liability company, partnership or other Person (whether or not, in any case, characterized as such or as a "joint venture"), whether now existing or hereafter organized or acquired:  (i) in the case of a corporation, of which a majority of the securities having ordinary voting power for the election of directors or other governing body (other than securities having such power only by reason of the happening of a contingency) are at the time beneficially owned by such Person and/or one or more Subsidiaries of such Person, or (ii) in the case of a limited liability company or partnership, of which a majority of the membership, partnership or other ownership interests are at the time beneficially owned by such Person and/or one or more of its Subsidiaries; and (b) any other Person the accounts of which are consolidated with the accounts of the designated parent.

"Swap Agreement" means a written agreement between Borrowers and one or more financial institutions, including without limitation, Fleet, providing for "swap", "cap", "collar" or other interest rate protection with respect to any Indebtedness.

"Test Debt Service Coverage Amount" means the amount described in the definition of "Borrowing Base."

"Total Assets" means all assets of a Person and its Subsidiaries determined on a consolidated basis in accordance with Generally Accepted Accounting Principles; provided that all Real Property owned by a Person that is improved and is not under development for the purposes of Section 6.10 shall be valued based on its Asset Value.  In the event that a Person has an ownership or other equity interest in any other Person, which investment is not consolidated in accordance with Generally Accepted Accounting Principles (that is, such interest is a "minority interest"), then the assets of a Person and its Subsidiaries shall include such Person's or its Subsidiaries' allocable share of all assets of such Person in which a minority interest is owned based on such Person's respective ownership interest in such other Person.

"Total Liabilities" means all liabilities of a Person and its Subsidiaries determined on a consolidated basis in accordance with Generally Accepted Accounting Principles and all Indebtedness and Guaranty Obligations of such Person and its Subsidiaries, whether or not so classified. In the event that a Person has an ownership or other equity interest in any other Person, which investment is not consolidated in accordance with Generally Accepted Accounting Principles (that is, such interest is a "minority interest"), then the liabilities of a Person and its Subsidiaries shall include such Person's or its Subsidiaries' allocable share of all indebtedness of such Person in which a minority interest is owned based on such Person's respective ownership interest in such other Person.

"to the best knowledge of" means, when modifying a representation, warranty or other statement of any Person, that the fact or situation described therein is known by the Person (or, in the case of a Person other than a natural Person, known by a Responsible Official of that Person) making the representation, warranty or other statement, or with the exercise of reasonable due diligence under the circumstances (in accordance with the standard of what a reasonable Person in similar circumstances would have done) would have been known by the Person (or, in the case of a Person other than a natural Person, would have been known by a Responsible Official of that Person).

"type", when used with respect to any Loan, means the designation of whether such Loan is an Alternate Base Rate Loan, or a LIBOR Rate Loan.

"Unencumbered" means, with respect to any Revenue-Producing Property, that such Revenue-Producing Property (a) is not subject to any Lien other than Permitted Encumbrances, (b) is not subject to any Negative Pledge and (c) is not held by a Person any of whose equity interests are subject to a Lien or Negative Pledge in favor of any creditor of Parent or any of its Subsidiaries.

"Unencumbered Asset Pool" means, as of any date of determination, (a) the Initial Pool Properties, plus (b) each other Qualified Unencumbered Asset Pool Property which has been added to the Unencumbered Asset Pool pursuant to Section 2.11 as of such date, minus (c) any Revenue-Producing Property which has been removed from the Unencumbered Asset Pool pursuant to Section 2.11 as of such date.

"Wholly-Owned Subsidiary" means a Subsidiary of Parent, 100% of the capital stock or other equity interest of which is owned, directly or indirectly, by Parent, except for director's qualifying shares required by applicable Laws.

	Use of Defined Terms.  Any defined term used in the plural shall refer to all members of the relevant class, and any defined term used in the singular shall refer to any one or more of the members of the relevant class.
	Accounting Terms.  All accounting terms not specifically defined in this Agreement shall be construed in conformity with, and all financial data required to be submitted by this Agreement shall be prepared in conformity with, Generally Accepted Accounting Principles applied on a consistent basis, except as otherwise specifically prescribed herein.  In the event that Generally Accepted Accounting Principles change during the term of this Agreement such that the covenants contained in Sections 6.5 through 6.15, inclusive, would then be calculated in a different manner or with different components, (a) Borrowers and the Banks agree to amend this Agreement in such respects as are necessary to conform those covenants as criteria for evaluating Borrowers' financial condition to substantially the same criteria as were effective prior to such change in Generally Accepted Accounting Principles and (b) Borrowers shall be deemed to be in compliance with the covenants contained in the aforesaid Sections if and to the extent that Borrowers would have been in compliance therewith under Generally Accepted Accounting Principles as in effect immediately prior to such change, but shall have the obligation to deliver each of the materials described in Article 7 to the Managing Agent and the Banks, on the dates therein specified, with financial data presented in a manner which conforms with Generally Accepted Accounting Principles as in effect immediately prior to such change.
	Rounding.  Any financial ratios required to be maintained by Borrowers pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed in this Agreement and rounding the result up or down to the nearest number (with a round-up if there is no nearest number) to the number of places by which such ratio is expressed in this Agreement.
	Exhibits and Schedules.  All Exhibits and Schedules to this Agreement, either as originally existing or as the same may from time to time be supplemented, modified or amended, are incorporated herein by this reference.  A matter disclosed on any Schedule shall be deemed disclosed on all Schedules.
	References to "Borrowers and their Subsidiaries".  Any reference herein to "Borrowers and their Subsidiaries" or the like shall refer solely to Borrowers during such times, if any, as Borrowers shall have no Subsidiaries.
	Miscellaneous Terms.  The term "or" is disjunctive; the term "and" is conjunctive.  The term "shall" is mandatory; the term "may" is permissive.  Masculine terms also apply to females; feminine terms also apply to males.  The term "including" is by way of example and not limitation.

	

LOANS

	Committed Loans-General.

	Subject to the terms and conditions set forth in this Agreement, at any time and from time to time from the Closing Date through November 9, 2001, each Bank shall, pro rata according to that Bank's Pro Rata Share of the then applicable Commitment, make Loans to Borrowers under the Commitment in such amounts as Borrowers may request for the purposes set forth in Section 5.9 that do not result in the aggregate principal amount outstanding under the Notes (after giving effect to all amounts requested thereunder) being in excess of the lesser of (A) the Commitment or (B) the Borrowing Base; provided that in all events no Default or Event of Default shall have occurred and be continuing.
	[Intentionally Omitted].
	Subject to the next sentence, each Loan shall be made pursuant to a Request for Loan which shall specify the requested (i) date of such Loan, (ii) type of Loan, (iii) amount of such Loan, and (iv) in the case of a LIBOR Rate Loan, the Interest Period for such Loan.  Unless the Managing Agent has notified, in its sole and absolute discretion, Borrowers to the contrary, a Loan may be requested by telephone by a Responsible Official of Borrowers, in which case Borrowers shall confirm such request by promptly delivering a Request for Loan in person or by telecopier conforming to the preceding sentence to the Managing Agent.  Managing Agent shall incur no liability whatsoever hereunder in acting upon any telephone request for a Loan purportedly made by a Responsible Official of Borrowers, and Borrowers hereby agree to indemnify the Managing Agent from any loss, cost, expense or liability as a result of so acting.
	Promptly following receipt of a Request for Loan, the Managing Agent shall notify each Bank by telephone or telecopier (and if by telephone, promptly confirmed by telecopier) of the date and type of the Loan, the applicable Interest Period, and that Bank's Pro Rata Share of the Loan.
	Not later than 2:00 p.m., Massachusetts time, on the date specified for any Loan (which must be a Banking Day), each Bank shall make its Pro Rata Share of the Loan in immediately available funds available to the Managing Agent at the Managing Agent's Office.  Upon satisfaction or waiver of the applicable conditions set forth in Article 8, such Loan shall be credited on that date in immediately available funds to the Designated Deposit Account. 
	Unless the Requisite Banks otherwise consent, each Alternate Base Rate Loan shall be not less than $1,000,000, each LIBOR Rate Loan shall be not less than $2,000,000 and all Loans shall be in an integral multiple of $100,000.  
	Loans made by each Bank under the Commitment shall be evidenced by that Bank's Note.
	A Request for Loan shall be irrevocable upon the Managing Agent's first notification thereof.

	Alternate Base Rate Loans.  Each request by Borrowers for an Alternate Base Rate Loan shall be made pursuant to a Request for Loan (or telephonic or other request for Loan referred to in the second sentence of Section 2.1(c), if applicable) received by the Managing Agent, at the Managing Agent's Office, not later than 2:00 p.m. Massachusetts time, on the date (which must be a Banking Day) prior to the date of the requested Alternate Base Rate Loan.  All Loans shall constitute Alternate Base Rate Loans unless properly designated as a LIBOR Rate Loan pursuant to Section 2.3.

	LIBOR Rate Loans.

	Each request by Borrowers for a LIBOR Rate Loan shall be made pursuant to a Request for Loan (or telephonic or other request for Loan referred to in the second sentence of Section 2.1(c), if applicable) received by the Managing Agent, at the Managing Agent's Office, not later than 2:00 p.m., Massachusetts time, at least three (3) LIBOR Banking Days before the first day of the applicable LIBOR Period.
	On the date which is two (2) LIBOR Banking Days before the first day of the applicable LIBOR Period, the Managing Agent shall confirm its determination of the applicable LIBOR Rate (which determination shall be conclusive in the absence of manifest error) and promptly shall give notice of the same to Borrowers and the Banks by telephone or telecopier (and if by telephone, promptly confirmed by telecopier).
	Unless the Managing Agent and the Requisite Banks otherwise consent, no more than three (3) LIBOR Rate Loans shall be outstanding at any one time.
	No LIBOR Rate Loan may be requested or continued during the continuation of a Default or Event of Default.
	Nothing contained herein shall require any Bank to fund any LIBOR Rate Loan in the London interbank market.

	Conversion Options.  

	The Borrowers may elect from time to time to convert all or a portion of any outstanding Loan to a Loan of another type and such Loan shall thereafter bear interest as an Alternate Base Rate Loan or a LIBOR Rate Loan, as applicable; provided that (i) with respect to any such conversion of a LIBOR Rate Loan to an Alternate Base Rate Loan, the Borrowers shall give the Managing Agent at least one Banking Days' prior written notice of such election, and such conversion shall be made on the last day of the Interest Period with respect to such LIBOR Rate Loan (or on such earlier date as Borrowers may request, provided Borrowers pay to Managing Agent the fees set forth in 3.8(e)); (ii) with respect to any such conversion of an Alternate Base Rate Loan to a LIBOR Rate Loan, the Borrowers shall give the Managing Agent at least three LIBOR Banking Days' prior written notice of such election and the Interest Period requested for such Loan; the principal amount of the Loan so converted shall be in a minimum aggregate amount of $2,000,000 or an integral multiple of $100,000 in excess thereof and, after giving effect to the making of such Loan, there shall be no more than three (3) LIBOR Rate Loans outstanding at any one time; and (iii) no Loan may be converted into a LIBOR Rate Loan when any Default or Event of Default has occurred and is continuing.  All or any part of the outstanding Loans of any type may be converted as provided herein, provided that no partial conversion shall result in an Alternate Base Rate Loan in an aggregate principal amount of less than $1,000,000 or a LIBOR Rate Loan in an aggregate principal amount of less than $2,000,000 and that the aggregate principal amount of each Loan shall be an integral multiple of $100,000.  On the date on which such conversion is being made, each Bank shall take, to the extent it deems it necessary to do so, such action as is necessary to transfer its Pro Rata Share of such Loans to its Domestic Lending Office or its LIBOR Lending Office, as the case may be.  Each Conversion Request relating to the conversion of an Alternate Base Rate Loan to a LIBOR Rate Loan shall be irrevocable by the Borrowers.
	Any Loan may be continued as such type upon the expiration of an Interest Period with respect thereto by compliance by the Borrowers with the terms of Section2.4; provided that no LIBOR Rate Loan may be continued as such when any Default or Event of Default has occurred and is continuing, but shall be automatically converted to an Alternate Base Rate Loan on the last day of the Interest Period relating thereto ending during the continuance of any Default or Event of Default.
	In the event that the Borrowers do not notify the Managing Agent of their election hereunder with respect to any Loan, such Loan shall be automatically converted to an Alternate Base Rate Loan at the end of the applicable Interest Period.

	[Intentionally Omitted].
	[Intentionally Omitted].
	[Intentionally Omitted].
	[Intentionally Omitted].
	[Intentionally Omitted].
	[Intentionally Omitted].
	Unencumbered Asset Pool.  Borrowers may at any time add a Qualified Unencumbered Asset Pool Property to the Unencumbered Asset Pool pursuant to this Section 2.11, which process shall be initiated by delivery by Borrowers to the Managing Agent (which the Managing Agent shall promptly distribute to the Banks) of a complete description of the Qualified Unencumbered Asset Pool Property, the most recent year operating income statement related thereto (to the extent available), cash flow projections for such property for at least the next twelve (12) months, a description of all tenants and leases with respect thereto, a certification of a Senior Officer of the Borrowers that Parent has obtained a current written report prepared by a qualified independent expert with respect to Hazardous Materials related thereto which discloses that such property would not be in violation of the representations and covenants of this Agreement and other written materials reasonably requested by any Bank.  Borrowers may remove a Revenue-Producing Property from the Unencumbered Asset Pool by delivery to the Managing Agent (for distribution to the Banks) of a written notice to that effect, accompanied by a Certificate of a Senior Officer of Borrowers setting forth the revised Borrowing Base as of the most recently-ended Fiscal Quarter resulting from such removal, which removal shall be effective on the third (3rd) day after the date of such notice.
	Representative of Borrowers.  Each of Borrowers hereby appoints Parent as its agent, attorney-in-fact and representative for the purpose of making Requests for Loans, Conversion Requests, payment and prepayment of Loans, the giving and receipt of notices by and to Borrowers under this Agreement and all other purposes incidental to any of the foregoing.  Each of Borrowers agrees that any action taken by Parent as the agent, attorney-in-fact and representative of such Borrowers shall be binding on such Borrowers to the same extent as if directly taken by such Borrower.

	

PAYMENTS AND FEES

	Principal and Interest.

	Interest shall be payable on the outstanding daily unpaid principal amount of each Loan from the Drawdown Date until payment in full is made and shall accrue and be payable at the rates set forth or provided for herein before and after Default, before and after maturity, before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law, with interest on overdue interest at the Default Rate to the fullest extent permitted by applicable Laws.
	Interest accrued on each Alternate Base Rate Loan shall be due and payable on each Monthly Payment Date.  Except as otherwise provided in Section 3.9, the unpaid principal amount of any Alternate Base Rate Loan shall bear interest at a fluctuating rate per annum equal to the Alternate Base Rate plus the Applicable Alternate Base Rate Margin.  Each change in the interest rate under this Section 3.1(b) due to a change in the Alternate Base Rate shall take effect simultaneously with the corresponding change in the Alternate Base Rate.
	Interest accrued on each LIBOR Rate Loan shall be due and payable on each Monthly Payment Date.  Except as otherwise provided in Section 3.9, the unpaid principal amount of any LIBOR Rate Loan shall bear interest at a rate per annum equal to the LIBOR Rate for that LIBOR Rate Loan plus the Applicable LIBOR Rate Margin.
	[Intentionally Omitted].
	In the event that any additional interest becomes due and payable for any period with respect to a Loan as a result of the Pricing Level being determined based on the Leverage Ratio or any change in the Leverage Ratio, and the interest for such period has previously been paid by the Borrowers, the Borrowers shall pay to the Managing Agent for the account of the Banks the amount of such increase within ten (10) days of demand.
	If not sooner paid, the principal Indebtedness evidenced by the Notes shall be payable as follows:

	the amount, if any, by which the principal Indebtedness evidenced by the Notes (after giving effect to all amounts requested thereunder), at any time exceeds the Commitment shall be payable immediately;
	[Intentionally Omitted];
	the amount, if any, by which the principal Indebtedness evidenced by the Notes (after giving effect to all amounts requested thereunder), at any time exceeds the Borrowing Base shall be payable immediately;
	[Intentionally Omitted]; and
	the principal Indebtedness evidenced by the Notes shall in any event be payable on the Maturity Date.

	The Notes may, at any time and from time to time, voluntarily be paid or prepaid in whole or in part without premium or penalty, except that with respect to any voluntary prepayment under this Section, (i) any partial prepayment shall be not less than $1,000,000, (ii) the Managing Agent shall have received written notice of any prepayment by 12:00 noon Massachusetts time on the date of prepayment (which must be a Banking Day) in the case of an Alternate Base Rate Loan, and, in the case of a LIBOR Rate Loan, three (3) Banking Days before the date of prepayment, which notice shall identify the date and amount of the prepayment and the Loan(s) being prepaid, (iii) each prepayment of principal on any Loan shall be accompanied by payment of interest accrued to the date of payment on the amount of principal paid, (iv) any payment or prepayment of all or any part of any LIBOR Rate Loan on a day other than the last day of the applicable Interest Period shall be subject to Section 3.8(e) and (v) upon any partial prepayment of a LIBOR Rate Loan that reduces it below $2,000,000, the remaining portion thereof shall automatically convert to an Alternate Base Rate Loan.  
	All of the Borrowers' interest in the gross proceeds of each and every sale or refinancing of real estate assets of the Borrowers and their respective Subsidiaries (whether held directly or indirectly) or of a sale of a Borrower as permitted by Section 6.18, less (i) all amounts required to be paid to the lenders under the Revolver in connection with such sale or refinancing pursuant to the Revolver Documents, and (ii) all reasonable costs, expenses and commissions paid to unrelated parties and less any Indebtedness (other than the Obligations) secured by such asset to be satisfied as a part of such sale or refinance, shall be promptly paid by the Borrowers to the Managing Agent for the account of the Banks as a prepayment of the Loans to the extent of the outstanding balance of the Loans (provided that such amounts may be deposited with Managing Agent as security for the Obligations and applied against the Obligations upon the expiration of the next succeeding LIBOR Periods, if applicable, following the occurrence of such event requiring such prepayment, to minimize the payment of costs pursuant to Section 3.8(e)).  The Borrowers shall upon the request of the Managing Agent enter into such further instruments (including financing statements) to further evidence or perfect such security interest.  In the event any amounts are deposited pursuant to this paragraph, the Borrowers may upon the approval of the Managing Agent obtain a release of amounts from such collateral account for such purposes as proceeds of the Loans may be used hereunder provided that (a) no Default or Event of Default shall have occurred and be continuing and (b) except (i) for representations and warranties which expressly speak as of a particular date or are no longer true and correct as a result of a change which is permitted by this Agreement or (ii) as disclosed by Borrowers and approved in writing by the Requisite Banks, the representations and warranties contained in Article 4 (other than Sections 4.4, 4.6 (first sentence), 4.10 and 4.18 to the extent such representations relate expressly to an earlier date) shall be true and correct in all material respects on and as of the date of the Loan as though made on that date. The Banks may elect at any time to apply any such deposited amounts as a prepayment of the Loan, provided that in connection with such application no costs pursuant to Section 3.8(e) shall be charged to Borrowers.  Notwithstanding anything contained herein to the contrary, the parties hereto acknowledge and agree that in no event shall the foregoing provision or any other provision contained herein be deemed to subordinate the Loans to the loans evidenced by the Revolver Loan Documents.
	Unless otherwise approved by the Managing Agent, the Borrowers shall cause all gross proceeds of each and every Debt Offering and Equity Offering, less (i) all amounts required to be paid to the lenders under the Revolver in connection with such Debt Offering or Equity Offering pursuant to the Revolver Loan Documents, and (ii) all reasonable costs, fees, expenses, underwriting commissions, fees and discounts incurred in connection therewith, to be paid by the Borrowers to the Managing Agent for the account of the Banks as a prepayment of the Loans within ten (10) days of the date of such offering to the extent of the outstanding balance of the Loans (provided that such amounts may be deposited with Managing Agent as security for the Obligations and applied against the Obligations upon the expiration of the next succeeding LIBOR Periods, if applicable, following the occurrence of such event requiring such prepayment, to minimize the payment of costs pursuant to Section 3.8(e)).  The Borrowers shall upon the request of the Managing Agent enter into such further instruments (including financing statements) to further evidence or perfect such security interest.  In the event any amounts are deposited pursuant to this paragraph, the Borrowers may upon the approval of the Managing Agent obtain a release of amounts from such collateral account for such purposes as proceeds of the Loans may be used hereunder provided that (a) no Default or Event of Default shall have occurred and be continuing and (b) except (i) for representations and warranties which expressly speak as of a particular date or are no longer true and correct as a result of a change which is permitted by this Agreement or (ii) as disclosed by Borrowers and approved in writing by the Requisite Banks, the representations and warranties contained in Article 4 (other than Sections 4.4, 4.6 (first sentence), 4.10 and 4.18 to the extent such representations relate expressly to an earlier date) shall be true and correct in all material respects on and as of the date of the Loan as though made on that date.  The Banks may elect at any time to apply any such deposited amounts as a prepayment of the Loan, provided that in connection with such application no costs pursuant to Section 3.8(e) shall be charged to Borrowers.  Notwithstanding anything contained herein to the contrary, the parties hereto acknowledge and agree that in no event shall the foregoing provision or any other provision contained herein be deemed to subordinate the Loans to the loans evidenced by the Revolver Loan Documents.
	Amounts of the Loans prepaid prior to the Maturity Date may not be reborrowed.
	Closing Fee.  On the Closing Date, Borrowers shall pay to the Managing Agent the closing fee as heretofore agreed upon pursuant to the Agreement Regarding Fees between Borrowers and the Managing Agent.  The closing fee paid to the Managing Agent is solely for its own account and is nonrefundable.  Managing Agent shall pay to the other Banks on the Closing Date a closing fee in accordance with their separate written agreement.
	[Intentionally Omitted].
	[Intentionally Omitted].
	Agency Fee.  Borrowers shall pay to the Managing Agent an agency fee in such amounts and at such times as heretofore agreed pursuant to the Agreement Regarding Fees between Borrowers and the Managing Agent.  The agency fee paid to the Managing Agent is solely for its own account and is nonrefundable.
	[Intentionally Omitted].
	Increased Commitment Costs.  If any Bank shall determine in good faith that the introduction after the Closing Date of any applicable law, rule, regulation or guideline regarding capital adequacy, or any change therein or any change in the interpretation or administration thereof by any central bank or other Governmental Agency charged with the interpretation or administration thereof, or compliance by such Bank (or its LIBOR Lending Office) or any corporation controlling such Bank, with any request, guideline or directive regarding capital adequacy (whether or not having the force of Law) of any such central bank or other authority not imposed as a result of such Bank's or such corporation's failure to comply with any other Laws, affects or would affect the amount of capital required or expected to be maintained by such Bank or any corporation controlling such Bank and (taking into consideration such Bank's or such corporation's policies with respect to capital adequacy and such Bank's desired return on capital) determines in good faith that the amount of such capital is increased, or the rate of return on capital is reduced, as a consequence of its obligations under this Agreement, then, within ten (10) Banking Days after demand of such Bank, Borrowers shall pay to such Bank, from time to time as specified in good faith by such Bank, additional amounts sufficient to compensate such Bank in light of such circumstances, to the extent reasonably allocable to such obligations under this Agreement, provided that Borrowers shall not be obligated to pay any such amount which arose prior to the date which is ninety (90) days preceding the date of such demand or is attributable to periods prior to the date which is ninety (90) days preceding the date of such demand.  Each Bank's determination of such amounts shall be conclusive in the absence of manifest error.
	LIBOR Costs and Related Matters.

	In the event that any Governmental Agency imposes on any Bank any reserve or comparable requirement (including any emergency, supplemental or other reserve) with respect to the LIBOR Obligations of that Bank, Borrowers shall pay that Bank within five (5) Banking Days after demand all amounts necessary to compensate such Bank (determined as though such Bank's LIBOR Lending Office had funded 100% of its LIBOR Rate Loans in the London interbank market) in respect of the imposition of such reserve requirements on each LIBOR Rate Loans made by such Bank (provided, that Borrowers shall not be obligated to pay any such amount which arose prior to the date which is ninety (90) days preceding the date of such demand or is attributable to periods prior to the date which is ninety (90) days preceding the date of such demand).  The Bank's determination of such amount shall be conclusive in the absence of manifest error.
	If, after the date hereof, the existence or occurrence of any Special LIBOR Circumstance:

	shall subject any Bank or its LIBOR Lending Office to any tax, duty or other charge or cost with respect to any LIBOR Rate Loans, any of its Notes evidencing LIBOR Rate Loans, or shall change the basis of taxation of payments to any Bank attributable to the principal of or interest on any LIBOR Rate Loans, or any other amounts due under this Agreement in respect of any LIBOR Rate Loans, any of its Notes evidencing LIBOR Rate Loans, or its obligation to make LIBOR Rate Loans, or any other amounts due under this Agreement in respect of any LIBOR Rate Loans (provided, that Borrowers shall not be obligated to pay any such amount which arose prior to the date which is ninety (90) days preceding the date of such demand or is attributable to periods prior to the date which is ninety (90) days preceding the date of such demand), excluding (i) taxes imposed on or measured in whole or in part by its overall net income by (A) any jurisdiction (or political subdivision thereof) in which it is organized or maintains its principal office or LIBOR Lending Office or (B) any jurisdiction (or political subdivision thereof) in which it is "doing business" and (ii) any withholding taxes or other taxes based on gross income imposed by the United States of America for any period with respect to which it has failed to provide Borrowers with the appropriate form or forms required by Section 11.21, to the extent such forms are then required by applicable Laws;
	shall impose, modify or deem applicable any reserve not applicable or deemed applicable on the date hereof (including any reserve imposed by the Board of Governors of the Federal Reserve System, special deposit, capital or similar requirements against assets of, deposits with or for the account of, or credit extended by, any Bank or its LIBOR Lending Office); or
	shall impose on any Bank or its LIBOR Lending Office or the London interbank market any other condition affecting any LIBOR Rate Loans, any of its Notes evidencing LIBOR Rate Loans, its obligation to make LIBOR Rate Loans, or this Agreement, or shall otherwise affect any of the same;

and the result of any of the foregoing, as determined in good faith by such Bank, increases the cost to such Bank or its LIBOR Lending Office of making or maintaining any LIBOR Rate Loan or in respect of any LIBOR Rate Loan, any of its Notes evidencing LIBOR Rate Loans or its obligation to make LIBOR Rate Loans or reduces the amount of any sum received or receivable by such Bank or its LIBOR Lending Office with respect to any LIBOR Rate Loan, any of its Notes evidencing LIBOR Rate Loans or its obligation to make LIBOR Rate Loans (assuming such Bank's LIBOR Lending Office had funded 100% of its LIBOR Rate Loans in the London interbank market), then, within five (5) Banking Days after demand by such Bank (with a copy to the Managing Agent), Borrowers shall pay to such Bank such additional amount or amounts as will compensate such Bank for such increased cost or reduction (determined as though such Bank's LIBOR Lending Office had funded 100% of its LIBOR Rate Loans in the London interbank market).  A statement of any Bank claiming compensation under this subsection shall be conclusive in the absence of manifest error.

	If, after the date hereof, the existence or occurrence of any Special LIBOR Circumstance shall, in the good faith opinion of any Bank, make it unlawful or impossible for such Bank or its LIBOR Lending Office to make, maintain or fund its portion of any LIBOR Rate Loan, or materially restrict the authority of such Bank to purchase or sell, or to take deposits of, Dollars in the London interbank market, or to determine or charge interest rates based upon the LIBOR Rate, and such Bank shall so notify the Managing Agent, then such Bank's obligation to make LIBOR Rate Loans shall be suspended for the duration of such illegality or impossibility and the Managing Agent forthwith shall give notice thereof to the other Banks and Borrowers.  Upon receipt of such notice, the outstanding principal amount of such Bank's LIBOR Rate Loans, together with accrued interest thereon, automatically shall be converted to Alternate Base Rate Loans on either (1) the last day of the LIBOR Period(s) applicable to such LIBOR Rate Loans if such Bank may lawfully continue to maintain and fund such LIBOR Rate Loans to such day(s) or (2) immediately if such Bank may not lawfully continue to fund and maintain such LIBOR Rate Loans to such day(s), provided that in such event the conversion shall not be subject to payment of a prepayment fee under Section 3.8(e).  Each Bank agrees to endeavor promptly to notify Borrowers of any event of which it has actual knowledge, occurring after the Closing Date, which will cause that Bank to notify the Managing Agent under this Section, and agrees to designate a different LIBOR Lending Office if such designation will avoid the need for such notice and will not, in the good faith judgment of such Bank, otherwise be materially disadvantageous to such Bank.  In the event that any Bank is unable, for the reasons set forth above, to make, maintain or fund its portion of any LIBOR Rate Loan, such Bank shall fund such amount as an Alternate Base Rate Loan for the same period of time, and such amount shall be treated in all respects as an Alternate Base Rate Loan.  Any Bank whose obligation to make LIBOR Rate Loans has been suspended under this Section shall promptly notify the Managing Agent and Borrowers of the cessation of the Special LIBOR Circumstance which gave rise to such suspension.
	If, with respect to any proposed LIBOR Rate Loan:

	the Managing Agent reasonably determines that, by reason of circumstances affecting the London interbank market generally that are beyond the reasonable control of the Banks, deposits in Dollars (in the applicable amounts) are not being offered to any Bank in the London interbank market for the applicable LIBOR Period; or
	the Requisite Banks advise the Managing Agent that the LIBOR Rate as determined by the Managing Agent (i) does not represent the effective pricing to such Banks for deposits in Dollars in the London interbank market in the relevant amount for the applicable LIBOR Period, or (ii) will not adequately and fairly reflect the cost to such Banks of making the applicable LIBOR Rate Loans;

then the Managing Agent forthwith shall give notice thereof to Borrowers and the Banks, whereupon until the Managing Agent notifies Borrowers that the circumstances giving rise to such suspension no longer exist, the obligation of the Banks to make any future LIBOR Rate Loans shall be suspended.

	Upon payment or prepayment of any LIBOR Rate Loan (other than as the result of a conversion required under Section 3.8(c) or as provided in the last sentence of each of Section 3.1(h) and 3.1(i) on a day other than the last day in the applicable LIBOR Period, (whether voluntarily, involuntarily, by reason of acceleration, or otherwise), or upon the failure of Borrowers (for a reason other than the breach by a Bank of its obligation pursuant to Section 2.1(a) to make a Loan) to borrow on the date or in the amount specified for a LIBOR Rate Loan in any Request for Loan or Conversion Request, Borrowers shall pay to the appropriate Bank within ten (10) Banking Days after demand a prepayment fee or failure to borrow fee, as the case may be (determined with respect to LIBOR Rate Loans as though 100% of the LIBOR Rate Loan had been funded in the London interbank market) equal to the sum of:

	$250; plus
	with respect to LIBOR Rate Loans, the amount, if any, by which (i) the additional interest that would have accrued on the amount prepaid or not borrowed at the LIBOR Rate plus the Applicable LIBOR Rate Margin if that amount had remained or been outstanding through the last day of the applicable Interest Period exceeds (ii) the interest that the Bank could recover by placing such amount on deposit in the London interbank market for a period beginning on the date of the prepayment or failure to borrow and ending on the last day of the applicable Interest Period (or, if no deposit rate quotation is available for such period, for the most comparable period for which a deposit rate quotation may be obtained); plus
	all out-of-pocket expenses incurred by the Bank reasonably attributable to such payment, prepayment or failure to borrow.

Each Bank's determination of the amount of any prepayment fee payable under this Section shall be conclusive in the absence of manifest error.

	Each Bank agrees to endeavor promptly to notify Borrowers of any event of which it has actual knowledge, occurring after the Closing Date, which will entitle such Bank to compensation pursuant to clause (a) or clause (b) of this Section 3.8, and agrees to designate a different LIBOR Lending Office if such designation will avoid the need for or reduce the amount of such compensation and will not, in the good faith judgment of such Bank, otherwise be materially disadvantageous to such Bank.  Any request for compensation by a Bank under this Section 3.8 shall set forth the basis upon which it has been determined that such an amount is due from Borrowers, a calculation of the amount due, and a certification that the corresponding costs have been incurred by the Bank.
	Default Rate; Late Payments.  Following the occurrence and during the continuance of any Event of Default, and regardless of whether or not the Banks shall have accelerated the maturity of the Loans, all Loans shall bear interest payable on demand at a rate per annum equal to two percent (2%) above the rate that would otherwise be applicable at such time, until such amount shall be paid in full (after as well as before judgment).  Accrued and unpaid interest on past due amounts (including, without limitation, interest on past due interest) shall be compounded monthly, on the last day of each calendar month, to the fullest extent permitted by applicable Laws.  In addition, the Borrowers shall pay a late charge equal to three percent (3%) of any amount of interest and/or principal payable on the Loans or any other amounts payable hereunder or under the other Loan Documents which is not paid within ten (10) days of the date when due.
	Computation of Interest and Fees.  Computation of interest and fees under this Agreement shall be calculated on the basis of a year of 360 days and the actual number of days elapsed.  Interest shall accrue on each Loan for the day on which the Loan is made; interest shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid.  Any Loan that is repaid on the same day on which it is made shall bear interest for one day.  Notwithstanding anything in this Agreement to the contrary, interest in excess of the maximum amount permitted by applicable Laws shall not accrue or be payable hereunder or under the Notes, and any amount paid as interest hereunder or under the Notes which would otherwise be in excess of such maximum permitted amount shall instead be treated as a payment of principal.
	Non-Banking Days.  If any payment to be made by Borrowers or any other Party under any Loan Document shall come due on a day other than a Banking Day, payment shall instead be considered due on the next succeeding Banking Day, unless, in the case of a payment relating to a LIBOR Rate Loan, such next succeeding Banking Day is in the next calendar month, in which case such payment shall be made on the next preceding Bank Day, and the extension of time shall be reflected in computing interest and fees.
	Manner and Treatment of Payments.

	Each payment hereunder (except payments pursuant to Sections 3.7, 3.8, 11.3, 11.11 and 11.22) or on the Notes or under any other Loan Document shall be made to the Managing Agent at the Managing Agent's Office for the account of each of the Banks or the Managing Agent, as the case may be, in lawful money of the United States in immediately available funds not later than 1:00 p.m. Massachusetts time, on the day of payment (which must be a Banking Day).  All payments received after such time, on any Banking Day, shall be deemed received on the next succeeding Banking Day.  The amount of all payments received by the Managing Agent for the account of each Bank shall be immediately paid by the Managing Agent to the applicable Bank in immediately available funds and, if such payment was received by the Managing Agent by 1:00 p.m., Massachusetts time, on a Banking Day and not so made available to the account of a Bank on that Banking Day, the Managing Agent shall reimburse that Bank for the cost to such Bank of funding the amount of such payment at the Federal Funds Rate.  All payments shall be made in lawful money of the United States of America.
	Each payment or prepayment on account of any Loan shall be applied pro rata according to each Bank's Pro Rata Share of the Commitment.
	Each Bank shall use its best efforts to keep a record (in writing or by an electronic data entry system) of Loans made by it and payments received by it with respect to each of its Notes and, subject to Section 10.6(g), such record shall, as against Borrowers, be presumptive evidence of the amounts owing.  Notwithstanding the foregoing sentence, the failure by any Bank to keep such a record shall not affect Borrowers' obligation to pay the Obligations.
	Each payment of any amount payable by Borrowers or any other Party under this Agreement or any other Loan Document shall be made without setoff or counterclaim and free and clear of, and without reduction by reason of, any taxes, assessments or other charges imposed by any Governmental Agency, central bank or comparable authority, excluding (i) taxes imposed on or measured in whole or in part by any Bank's overall net income by (A) any jurisdiction (or political subdivision thereof) in which such Bank is organized or maintains its principal office or LIBOR Lending Office or (B) any jurisdiction (or political subdivision thereof) in which such Bank is "doing business" and (ii) any withholding taxes or other taxes based on gross income imposed by the United States of America for any period with respect to which any Bank has failed to provide Borrowers with the appropriate form or forms required by Section 11.21, to the extent such forms are then required by applicable Laws (all such non-excluded taxes, assessments or other charges being hereinafter referred to as "Taxes").  To the extent that Borrowers are obligated by applicable Laws to make any deduction or withholding on account of Taxes from any amount payable to any Bank under this Agreement, Borrowers shall (i) make such deduction or withholding and pay the same to the relevant Governmental Agency and (ii) pay such additional amount to that Bank as is necessary to result in that Bank's receiving a net after-Tax amount equal to the amount to which that Bank would have been entitled under this Agreement absent such deduction or withholding.  If and when receipt of such payment results in an excess payment or credit to that Bank on account of such Taxes, that Bank shall promptly refund such excess to Borrowers.

	Funding Sources.  Nothing in this Agreement shall be deemed to obligate any Bank to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Bank that it has obtained or will obtain the funds for any Loan in any particular place or manner.
	Failure to Charge Not Subsequent Waiver.  Any decision by the Managing Agent or any Bank not to require payment of any interest (including interest arising under Section 3.9), fee, cost or other amount payable under any Loan Document, or to calculate any amount payable by a particular method, on any occasion shall in no way limit or be deemed a waiver of the Managing Agent's or such Bank's right to require full payment of any interest (including interest arising under Section 3.9), fee, cost or other amount payable under any Loan Document, or to calculate an amount payable by another method that is not inconsistent with this Agreement, on any other or subsequent occasion.
	Managing Agent's Right to Assume Payments Will be Made by Borrowers.  Unless the Managing Agent shall have been notified by Borrowers prior to the date on which any payment to be made by Borrowers hereunder is due that Borrowers do not intend to remit such payment, the Managing Agent may, in its discretion, assume that Borrowers have remitted such payment when so due and the Managing Agent may, in its discretion and in reliance upon such assumption, make available to each Bank on such payment date an amount equal to such Bank's share of such assumed payment.  If Borrowers have not in fact remitted such payment to the Managing Agent, each Bank shall forthwith on demand repay to the Managing Agent the amount of such assumed payment made available to such Bank, together with interest thereon in respect of each day from and including the date such amount was made available by the Managing Agent to such Bank to the date such amount is repaid to the Managing Agent at the Federal Funds Rate.
	Fee Determination Detail.  The Managing Agent, and any Bank, shall provide reasonable detail to Borrowers regarding the manner in which the amount of any payment to the Managing Agent and the Banks, or that Bank, under Article 3 has been determined, concurrently with demand for such payment.
	Survivability.  All of Borrowers' obligations under Sections 3.7 and 3.8 shall survive for the ninety (90) day period following the date on which the Commitment is terminated and all Loans hereunder are fully paid, and Borrowers shall remain obligated thereunder for all claims under such Sections made by any Bank to Borrowers prior to the expiration of such period.

	

REPRESENTATIONS AND WARRANTIES

Borrowers represent and warrant to the Banks that:

	Existence and Qualification; Power; Compliance With Laws.  Parent is a corporation duly formed, validly existing and in good standing under the Laws of Maryland and each other Borrower is a corporation, limited partnership or limited liability company duly formed, validly existing and in good standing under the Laws of its state of formation.  Each of Borrowers is duly qualified or registered to transact business and is in good standing in each other jurisdiction in which the conduct of its business or the ownership or leasing of its Properties makes such qualification or registration necessary, except where the failure so to qualify or register and to be in good standing would not constitute a Material Adverse Effect.  Each of Borrowers has all requisite power and authority to conduct its business, to own and lease its Properties and to execute and deliver each Loan Document to which it is a Party and to perform its Obligations.  All outstanding shares of capital stock of Parent are duly authorized, validly issued, fully paid and non-assessable, and no holder thereof has any enforceable right of rescission under any applicable state or federal securities Laws.  Each of Borrowers is in compliance with all Laws and other legal requirements applicable to its business, has obtained all authorizations, consents, approvals, orders, licenses and permits from, and has accomplished all filings, registrations and qualifications with, or obtained exemptions from any of the foregoing from, any Governmental Agency that are necessary for the transaction of its business, except where the failure so to comply, obtain authorizations, etc., file, register, qualify or obtain exemptions does not constitute a Material Adverse Effect.  Parent is a "real estate investment trust" within the meaning of Section 856 of the Code, and is subject to federal income taxation as a real estate investment trust pursuant to SectionSection856-860 of the Code.
	Authority; Compliance With Other Agreements and Instruments and Government Regulations.  The execution, delivery and performance by each of Borrowers of the Loan Documents to which it is a Party have been duly authorized by all necessary corporate, partnership or limited liability company action, as applicable, and do not and will not:

	Require any consent or approval not heretofore obtained of any partner, director, stockholder, security holder or creditor of Borrowers;
	Violate or conflict with any provision of Borrowers' charter, articles of incorporation, bylaws or other organizational agreements, as applicable;
	Result in or require the creation or imposition of any Lien or Right of Others upon or with respect to any Property now owned or leased or hereafter acquired by Borrowers;
	Violate any Requirement of Law applicable to Borrowers;
	Result in a breach of or constitute a default under, or cause or permit the acceleration of any obligation owed under, any indenture or loan or credit agreement or any other Contractual Obligation to which Borrowers are a party or by which Borrowers or any of their Property is bound or affected;

and none of Borrowers is in violation of, or default under, any Requirement of Law or Contractual Obligation, or any indenture, loan or credit agreement described in Section 4.2(e), in any respect that constitutes a Material Adverse Effect.

	No Governmental Approvals Required.  Except as previously obtained or made, no authorization, consent, approval, order, license or permit from, or filing, registration or qualification with, any Governmental Agency is or will be required to authorize or permit under applicable Laws the execution, delivery and performance by any of Borrowers of the Loan Documents to which it is a Party.
	Subsidiaries.  Schedule 4.4 hereto correctly sets forth the names, form of legal entity, number of shares of capital stock (or other applicable unit of equity interest) issued and outstanding, and the record owner thereof and jurisdictions of organization of all Subsidiaries of Parent.  Unless otherwise indicated in Schedule 4.4, all of the outstanding shares of capital stock, or all of the units of equity interest, as the case may be, of each such Subsidiary are owned of record and beneficially by Parent, there are no outstanding options, warrants or other rights to purchase capital stock of any such Subsidiary, and all such shares or equity interests so owned are duly authorized, validly issued, fully paid and non-assessable, and were issued in compliance with all applicable state and federal securities and other Laws, and are free and clear of all Liens and Rights of Others, except for Permitted Encumbrances and Permitted Rights of Others.
	Financial Statements.  Borrowers have furnished to the Banks the audited consolidated financial statements of Parent and its Subsidiaries for the Fiscal Year ended December 31, 2000 and the unaudited consolidated financial statements for the six months ended June 30, 2001.  The financial statements described above fairly present in all material respects the financial condition, results of operations and cash flows as of such date and for such period in conformity with Generally Accepted Accounting Principles consistently applied.
	No Other Liabilities; No Material Adverse Changes.  Borrowers do not have any material liability or material contingent liability required under Generally Accepted Accounting Principles to be reflected or disclosed, and not reflected or disclosed, in the balance sheets described in Section 4.5, other than liabilities and contingent liabilities arising in the ordinary course of business since the date of such financial statements.  As of the Closing Date, no circumstance or event has occurred that constitutes a Material Adverse Effect.  As of any date subsequent to the Closing Date, no circumstance or event has occurred that constitutes a Material Adverse Effect since the Closing Date.
	Title to Property.  Borrowers have valid title to the Property (other than assets which are the subject of a Capital Lease Obligation) reflected in the balance sheet described in Section 4.5, other than items of Property or exceptions to title which are in each case immaterial to Borrowers and Property subsequently sold or disposed of in the ordinary course of business.  Such Property is free and clear of all Liens and Rights of Others, other than Liens or Rights of Others described in Schedule 4.7 and Permitted Encumbrances and Permitted Rights of Others.
	Intangible Assets.  Borrowers own, or possess the right to use to the extent necessary in their respective businesses, all material trademarks, trade names, copyrights, patents, patent rights, computer software, licenses and other Intangible Assets that are used in the conduct of their businesses as now operated, and no such Intangible Asset, to the best knowledge of Borrowers, conflicts with the valid trademark, trade name, copyright, patent, patent right or Intangible Asset of any other Person to the extent that such conflict constitutes a Material Adverse Effect.
	Public Utility Holding Company Act.  None of Borrowers is a "holding company", or a "subsidiary company" of a "holding company", or an "affiliate" of a "holding company" or of a "subsidiary company" of a "holding company", within the meaning of the Public Utility Holding Company Act of 1935, as amended.
	Litigation.  Except for (a) any matter fully covered as to subject matter and amount (subject to applicable deductibles and retentions) by insurance for which the insurance carrier has not asserted lack of subject matter coverage or reserved its right to do so, (b) any matter, or series of related matters, involving a claim against Parent or any of its Subsidiaries of less than $1,000,000, (c) matters of an administrative nature not involving a claim or charge against Parent or any of its Subsidiaries and (d) matters set forth in Schedule 4.10, there are no actions, suits, proceedings or investigations pending as to which Parent or any of its Subsidiaries have been served or have received notice or, to the best knowledge of Borrowers, threatened against or affecting Parent or any of its Subsidiaries or any Property of any of them before any Governmental Agency, mediator or arbitrator.
	Binding Obligations.  Each of the Loan Documents to which Borrowers are a Party will, when executed and delivered by Borrowers, constitute the legal, valid and binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as enforcement may be limited by Debtor Relief Laws or equitable principles relating to the granting of specific performance and other equitable remedies as a matter of judicial discretion.
	No Default.  No event has occurred and is continuing that is a Default or Event of Default.
	ERISA.

	With respect to each Pension Plan:

	such Pension Plan complies in all material respects with ERISA and any other applicable Laws to the extent that noncompliance could reasonably be expected to have a Material Adverse Effect;
	such Pension Plan has not incurred any "accumulated funding deficiency" (as defined in Section 302 of ERISA) that could reasonably be expected to have a Material Adverse Effect;
	no "reportable event" (as defined in Section 4043 of ERISA, but excluding such events as to which the PBGC has by regulation waived the requirement therein contained that it be notified within thirty days of the occurrence of such event) has occurred that could reasonably be expected to have a Material Adverse Effect; and
	none of Parent nor any of its Subsidiaries has engaged in any non-exempt "prohibited transaction" (as defined in Section 4975 of the Code) that could reasonably be expected to have a Material Adverse Effect.

	None of Parent nor any of its Subsidiaries has incurred or expects to incur any withdrawal liability to any Multiemployer Plan that could reasonably be expected to have a Material Adverse Effect.
	Regulations T, U and X; Investment Company Act.  No part of the proceeds of any Loan hereunder will be used to purchase or carry, or to extend credit to others for the purpose of purchasing or carrying, any Margin Stock in violation of Regulations T, U and X.  Neither Parent nor any of its Subsidiaries is or is required to be registered as an "investment company" under the Investment Company Act of 1940.
	Disclosure.  No written statement made by a Senior Officer to the Managing Agent or any Bank in connection with this Agreement, or in connection with any Loan, as of the date thereof contained any untrue statement of a material fact or omitted a material fact necessary to make the statement made not misleading in light of all the circumstances existing at the date the statement was made.
	Tax Liability.  Parent and its Subsidiaries have filed all tax returns which are required to be filed, and have paid, or made provision for the payment of, all taxes with respect to the periods, Property or transactions covered by said returns, or pursuant to any assessment received by Parent or any of its Subsidiaries, except (a) such taxes, if any, as are being contested in good faith by appropriate proceedings and as to which adequate reserves have been established and maintained and (b) immaterial taxes so long as no material Property of Parent or any of its Subsidiaries is at impending risk of being seized, levied upon or forfeited.
	Hazardous Materials.  Except as described in Schedule 4.17, as of the Closing Date (a) none of Borrowers, nor to the best knowledge of Borrowers, any other Person at any time has disposed of, discharged, released or threatened the release of any Hazardous Materials on, from or under the Real Property in violation of any Hazardous Materials Law that would individually or in the aggregate constitute a Material Adverse Effect, (b) to the best knowledge of Borrowers, no condition exists that violates any Hazardous Material Law affecting any Real Property except for such violations that would not individually or in the aggregate constitute a Material Adverse Effect, (c) no Real Property or any portion thereof is or has been utilized by Borrowers nor, to the best knowledge of Borrowers, any other Person as a site for the manufacture of any Hazardous Materials, (d) to the extent that any Hazardous Materials are used, generated or stored by Borrowers or any other Person on any Real Property, or transported to or from such Real Property by Borrowers or any other Person, such use, generation, storage and transportation by Borrowers and, to the best knowledge of Borrowers, by any other Person are in compliance with all Hazardous Materials Laws except for such non-compliance that would not constitute a Material Adverse Effect or be materially adverse to the interests of the Banks, and (e) no Real Property is subject to any remediation, removal, containment or similar action conducted by or on behalf of any Borrower or any other Person, or with respect to any such Real Property listed on Schedule 4.17 which is subject to any such action, the estimated costs for completing such action are as set forth on Schedule 4.17.
	Initial Pool Properties.  The Initial Pool Properties described on Schedule 4.18 are, as of the Closing Date, Qualified Unencumbered Asset Pool Properties and comprise the initial Unencumbered Asset Pool.
	Property.  All of the Borrowers' and their respective Subsidiaries' properties are in good repair and condition, subject to ordinary wear and tear, other than with respect to deferred maintenance existing as of the date of acquisition of such property as permitted in this Section 4.19 and except for such defects relating to properties other than properties in the Unencumbered Asset Pool which would not have a Material Adverse Effect.  The Borrowers further have completed or caused to be completed an appropriate investigation of the environmental condition of each such property as of the later of (a) the date of the Borrowers' or such Subsidiaries' purchase thereof or (b) the date upon which such property was last security for Indebtedness of such Borrower or such Subsidiary if such financing was not closed on or about the date of the acquisition of such property, including preparation of a "Phase I" report and, if appropriate, a "Phase II" report, in each case prepared by a recognized environmental consultant in accordance with customary standards which discloses that such property is not in violation of the representations and covenants set forth in this Agreement, unless such violation as to properties in the Unencumbered Asset Pool has been disclosed in writing to the Managing Agent and satisfactory remediation actions are being taken.  There are no unpaid or outstanding real estate or other taxes or assessments on or against any property of any Borrower or any of their respective Subsidiaries which are payable by such Person (except only real estate or other taxes or assessments, that are not yet due and payable).  There are no pending eminent domain proceedings against any property included within the Unencumbered Asset Pool, and, to the knowledge of the Borrowers, no such proceedings are presently threatened or contemplated by any taking authority which may individually or in the aggregate have a Material Adverse Effect.  None of the property of Borrowers or their respective Subsidiaries is now damaged or injured as a result of any fire, explosion, accident, flood or other casualty in any manner which individually or in the aggregate would have a Material Adverse Effect.  The Real Property owned by Parent, each of the other Borrowers and their respective Subsidiaries as of the date hereof is set forth on Schedule 4.19 hereto.
	Brokers.  None of the Borrowers nor any of their respective Subsidiaries has engaged or otherwise dealt with any broker, finder or similar entity in connection with this Agreement or the Loans contemplated hereunder.
	Other Debt.  None of the Borrowers or any of their respective Subsidiaries is in default (after expiration of all applicable grace and cure periods) in the payment of any other Indebtedness or under any mortgage, deed of trust, security agreement, financing agreement or indenture involving Indebtedness of $5,000,000.00 or more or under any other material agreement or lease to which any of them is a party.  None of the Borrowers is a party to or bound by any agreement, instrument or indenture that may require the subordination in right or time of payment of any of the Obligations to any other indebtedness or obligation of such Borrower, except as may be specifically set forth herein with respect to the Revolver.  Schedule 4.21 hereto sets forth all of the Indebtedness of the type described in Sections 6.11 and 6.12 of the Borrowers and their respective Subsidiaries as of the date hereof.
	Solvency.  As of the Closing Date and after giving effect to the transactions contemplated by this Agreement and the other Loan Documents, including all of the Loans made or to be made hereunder, none of the Borrowers is insolvent on a balance sheet basis such that the sum of such Person's assets exceeds the sum of such Person's liabilities, each Borrower is able to pay its debts as they become due, and each Borrower has sufficient capital to carry on its business.
	No Fraudulent Intent.  Neither the execution and delivery of this Agreement or any of the other Loan Documents nor the performance of any actions required hereunder or thereunder is being undertaken by any Borrower with or as a result of any actual intent by any of such Persons to hinder, delay or defraud any entity to which any of such Persons is now or will hereafter become indebted.
	Transaction in Best Interests of Borrowers; Consideration.  The transaction evidenced by this Agreement and the other Loan Documents is in the best interests of the Borrowers.  The direct and indirect benefits to inure to the Borrowers pursuant to this Agreement and the other Loan Documents constitute substantially more than "reasonably equivalent value" (as such term is used in Section 548 of the Bankruptcy Code) and "valuable consideration," "fair value," and "fair consideration" (as such terms are used in any applicable state fraudulent conveyance law), in exchange for the benefits to be provided by the Borrowers pursuant to this Agreement and the other Loan Documents, and but for the willingness of the Borrowers to be jointly and severally liable as co-borrowers for the Loan, Borrowers would be unable to obtain the financing contemplated hereunder which financing will enable the Borrowers and their respective Subsidiaries to have available financing to conduct and expand their business.
	No Bankruptcy Filing.  None of the Borrowers nor any of their respective Subsidiaries is contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of its assets or property, and none of the Borrowers has any knowledge of any Person contemplating the filing of any such petition against it or any of such other Persons.
	[Intentionally Omitted].

	

AFFIRMATIVE COVENANTS

(OTHER THAN INFORMATION AND

REPORTING REQUIREMENTS)

So long as any Loan remains unpaid, any other Obligation remains unpaid, or any portion of the Commitment remains in force, Borrowers shall, unless the Managing Agent (with the written approval of the Requisite Banks) otherwise consents:

	Payment of Taxes and Other Potential Liens.  Pay and discharge promptly all taxes, assessments and governmental charges or levies imposed upon any of them, upon their respective Property or any part thereof and upon their respective income or profits or any part thereof, and all claims for labor, materials or supplies that if unpaid might by law become a lien or charge upon any of their respective Property, except that Borrowers shall not be required to pay or cause to be paid (a) any tax, assessment, charge, levy or claim that is not yet past due, or is being contested in good faith by appropriate proceedings so long as the relevant entity has established and maintains adequate reserves for the payment of the same or (b) any immaterial tax or claim so long as no material Property of Borrowers is at impending risk of being seized, levied upon or forfeited.
	Preservation of Existence.  Preserve and maintain their respective existences in the jurisdiction of their formation and all material authorizations, rights, franchises, privileges, consents, approvals, orders, licenses, permits, or registrations from any Governmental Agency that are necessary for the transaction of their respective business and qualify and remain qualified to transact business in each jurisdiction in which such qualification is necessary in view of their respective business or the ownership or leasing of their respective Properties except (a) as otherwise permitted by this Agreement and (b) where the failure to so qualify or remain qualified would not constitute a Material Adverse Effect.
	Maintenance of Properties.  Maintain, preserve and protect all of their respective Properties in good order and condition, subject to wear and tear in the ordinary course of business, and not permit any waste of their respective Properties, except that the failure to maintain, preserve and protect a particular item of Property that is at the end of its useful life or that is not of significant value, either intrinsically or to the operations of Borrowers, shall not constitute a violation of this covenant.
	Maintenance of Insurance.  Maintain liability, casualty and other insurance (subject to customary deductibles and retentions) with responsible insurance companies in such amounts and against such risks as is carried by responsible companies engaged in similar businesses and owning similar assets in the general areas in which Borrowers operate.
	Compliance With Laws.  Comply with all Requirements of Law noncompliance with which constitutes a Material Adverse Effect, except that Borrowers need not comply with a Requirement of Law then being contested by any of them in good faith by appropriate proceedings.
	Inspection Rights.  Upon reasonable notice, at any time during regular business hours and as often as reasonably requested (but not so as to materially interfere with the business of Parent or any of its Subsidiaries) permit the Managing Agent or any Bank, or any authorized employee, agent or representative thereof, to examine, audit and make copies and abstracts from the records and books of account of, and to visit and inspect the Properties (subject to the rights of any tenants) of, Parent and its Subsidiaries and to discuss the affairs, finances and accounts of Parent and its Subsidiaries with any of their officers, key employees or accountants.
	Keeping of Records and Books of Account.  Keep adequate records and books of account reflecting all financial transactions in conformity with Generally Accepted Accounting Principles, consistently applied, and in material conformity with all applicable requirements of any Governmental Agency having regulatory jurisdiction over Borrowers.
	Compliance With Agreements.  Promptly and fully comply with all Contractual Obligations to which any one or more of them is a party, except for any such Contractual Obligations (a) the performance of which would cause a Default or (b) then being contested by any of them in good faith by appropriate proceedings or if the failure to comply with such agreements, indentures, leases or instruments does not constitute a Material Adverse Effect.
	Use of Proceeds.  Use the proceeds of all Loans to reduce the outstanding obligations of Borrowers under the Revolver, for working capital and general corporate purposes of Borrowers, including the acquisition and/or improvement of Revenue-Producing Properties and land, and to pay closing costs and expenses in connection with the closing of the Loan.
	Hazardous Materials Laws.  Keep and maintain all Real Property and each portion thereof in compliance in all material respects with all applicable Hazardous Materials Laws and promptly notify the Managing Agent in writing (attaching a copy of any pertinent written material) of (a) any and all material enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened in writing by a Governmental Agency pursuant to any applicable Hazardous Materials Laws, (b) any and all material claims made or threatened in writing by any Person against Borrowers relating to damage, contribution, cost recovery, compensation, loss or injury resulting from any Hazardous Materials and (c) discovery by any Senior Officer of any of Borrowers of any material occurrence or condition on any Real Property or on any real property adjoining or in the vicinity of such Real Property that could reasonably be expected to cause such Real Property or any part thereof to be subject to any restrictions on the ownership, occupancy, transferability or use of such Real Property under any applicable Hazardous Materials Laws.
	Unencumbered Asset Pool.  Cause each Revenue-Producing Property in the Unencumbered Asset Pool to remain a Qualified Unencumbered Asset Pool Property so long as it is in the Unencumbered Asset Pool; provided that nothing herein shall preclude the removal of any Revenue-Producing Property from the Unencumbered Asset Pool pursuant to Section 2.11.
	REIT Status.  Maintain the status of Parent as a "real estate investment trust" under Section 856 of the Code and comply with the  dividend and other requirements applicable under Section 857(a) of the Code.
	Additional Borrowers.  Cause each Wholly-Owned Subsidiary of Parent which is not then a Borrower and which holds a Revenue-Producing Property that is or will become part of the Unencumbered Asset Pool to execute and deliver the Joinder Agreement concurrently with the addition of such Revenue-Producing Property to the Unencumbered Asset Pool.
	Inspection of Properties and Books.  Permit the Banks, through the Managing Agent or any representative designated by the Managing Agent, at the Borrowers' expense, to visit and inspect any of the properties of the Borrowers or any of their respective Subsidiaries, to examine the books of account of the Borrowers and their respective Subsidiaries (and to make copies thereof and extracts therefrom) and to discuss the affairs, finances and accounts of the Borrowers and their respective Subsidiaries with, and to be advised as to the same by, its Senior Officers, all at such reasonable times (typically during normal business hours) and intervals as the Managing Agent or any Bank may reasonably request upon not less than four (4) Banking Days notice.  The Banks shall use good faith efforts to coordinate such visits and inspections so as to minimize the interference with and disruption to the Borrowers' normal business operations.  At least once annually, the Borrowers shall attend a meeting with the Banks and the Managing Agent to discuss the financial condition and affairs of the Borrowers and their respective Subsidiaries.
	More Restrictive Agreements.  Promptly notify the Managing Agent should any Borrower enter into or modify any agreements or documents pertaining to any existing or future Indebtedness, Debt Offering or Equity Offering, which agreements or documents include covenants, whether affirmative or negative, which are individually or in the aggregate more restrictive against any Borrower or their respective Subsidiaries than those set forth in Sections 5.17, 6.1, 6.5 through 6.13, inclusive, or 6.15 (or any other provision which may have the same practical effect as any of the foregoing) or which provide for a guaranty of the obligations thereunder by a Person that is not liable for the Obligations.  If requested by the Requisite Banks, the Borrowers, the Managing Agent, and the Requisite Banks shall promptly amend this Agreement and the other Loan Documents to include some or all of such more restrictive provisions or provide for a guaranty of the Obligations by such Person as determined by the Requisite Banks in their sole discretion.  Notwithstanding the foregoing, this Section 5.15 shall not apply to covenants contained in any agreements or documents that relate only to specific Real Property that is collateral for any existing or future Indebtedness of any of the Borrowers that is permitted by the terms of this Agreement.
	Distributions of Income to the Borrowers.  Cause all of their respective Subsidiaries to promptly transfer to such Borrower (but not less frequently than once each fiscal quarter of such Borrower), whether in the form of dividends, distributions or otherwise, all profits, proceeds or other income relating to or arising from its Subsidiaries' use, operation, financing, refinancing, sale or other disposition of their respective assets and properties after (a) the payment by each Subsidiary of its Debt Service and operating expenses for such quarter and (b) the establishment of reasonable reserves for the payment of operating expenses not paid on at least a quarterly basis and capital improvements to be made to such Subsidiary's assets and properties approved by such Subsidiary in the ordinary course of business consistent with its past practices.
	Unencumbered Asset Pool.

	Cause each of the Revenue-Producing Properties in the Unencumbered Asset Pool to satisfy all of the following conditions:

	the Revenue-Producing Properties shall be owned by a Borrower or leased by a Borrower pursuant to a Mortgageable Ground Lease (subject to the terms of this Agreement);
	no more than twenty-five percent (25%) of the Asset Value of the Revenue-Producing Properties in the Unencumbered Asset Pool may be leased by a Borrower pursuant to a Mortgageable Ground Lease;
	the Revenue-Producing Properties in the Unencumbered Asset Pool shall consist solely of Revenue-Producing Properties which have an aggregate occupancy level (on a portfolio basis) of at least eighty-five percent (85%) as of the end of  the previous four (4) fiscal quarters of the Borrowers based on bona fide arms-length tenant leases which are in full force and effect requiring current rental payments and which are in good standing; and
	no more than thirty-three percent (33%) of the Asset Value of the Revenue-Producing Properties in the Unencumbered Asset Pool may be located in any one city or metropolitan area; provided that no more than fifty percent (50%) of the Asset Value of the Revenue-Producing Properties in the Unencumbered Asset Pool may be located in suburban Washington, D.C.

	Provide to the Managing Agent as of the Closing Date and concurrently with the delivery of the financial statements described in Section 7.1(c) as part of the Compliance Certificate required pursuant to Section 7.2 (i) a list of the Revenue-Producing Properties in the Unencumbered Asset Pool, (ii) the certification of a Senior Officer of the Borrowers of the Asset Values of such properties and that such properties are in compliance with Section 5.17(a), (iii) operating statements setting forth the NOI and Net Capital Expenditures for each of the Revenue-Producing Properties in the Unencumbered Asset Pool for the previous four (4) fiscal quarters (or such shorter period as the Revenue-Producing Property has been held by the Borrowers if such statements are not available to Borrowers) certified as true and correct by a Senior Officer of the Borrowers, and (iv) a certificate that the Revenue-Producing Properties in the Unencumbered Asset Pool comply with the terms of Sections 4.17 and 4.19.  Notwithstanding the foregoing, unless otherwise required by Managing Agent in its sole and absolute discretion, in the event that the Managing Agent and the managing agent under the Revolver are the same entity, Borrowers shall be entitled to simultaneously deliver to Managing Agent and the managing agent under the Revolver one set of the documents referred to in items (i) - (iv) above, provided, however, that Borrowers shall provide to Managing Agent separate certificates or certifications referred to in such items (i)-(iv) above which certificates and certifications shall specifically refer to this Agreement, the Loans and the Obligations.  In the event that all or any material portion of a Revenue-Producing Property within the Unencumbered Asset Pool shall be damaged or taken by condemnation, then such property shall no longer be a part of the Unencumbered Asset Pool unless and until any damage to such Revenue-Producing Property is repaired or restored, such Revenue-Producing Property becomes fully operational and the Managing Agent shall receive evidence satisfactory to the Managing Agent of the value and NOI of such Revenue-Producing Property following such repair or restoration.

	

NEGATIVE COVENANTS

So long as any Loan remains unpaid, or any other Obligation remains unpaid, or any portion of the Commitment remains in force, Borrowers shall not, unless the Managing Agent (with the written approval of the Requisite Banks or, if required by Section 12.1, of all of the Banks) otherwise consents:

	Mergers.  Merge or consolidate with or into any Person, except a merger or consolidation of one or more Borrowers with and into another Borrower or a merger or consolidation where Parent or a Borrower is the surviving corporation that does not result in a Change in Control.
	ERISA.  (a) At any time, permit any Pension Plan to:  (i) engage in any non-exempt "prohibited transaction" (as defined in Section 4975 of the Code) which could reasonably be expected to result in a Material Adverse Effect, (ii) fail to comply with ERISA which could reasonably be expected to result in a Material Adverse Effect, (iii) incur any material "accumulated funding deficiency" (as defined in Section 302 of ERISA) which could reasonably be expected to result in a Material Adverse Effect or (iv) terminate in any manner which could reasonably be expected to result in a Material Adverse Effect, or (b) withdraw, completely or partially, from any Multiemployer Plan if to do so could reasonably be expected to result in a Material Adverse Effect.
	Change in Nature of Business.  Make any material change in the principal nature of the business of Borrowers, such business being the acquisition, ownership and development of buildings for use as office or, with respect to the life science industry only,  office/laboratory, research or manufacturing/warehouse properties.
	Transactions with Affiliates.  Enter into any transaction of any kind with any Affiliate of Borrowers other than (a) salary, bonus, employee stock option, relocation assistance and other compensation arrangements with directors or officers in the ordinary course of business, (b) transactions that are fully disclosed to the board of directors of Parent and expressly authorized by a resolution of the board of directors of Parent which is approved by a majority of the directors not having an interest in the transaction, (c) transactions expressly permitted by this Agreement, (d) transactions between one Borrower and another Borrower and (e) transactions on overall terms at least as favorable to Borrowers as would be the case in an arm's-length transaction between unrelated parties of equal bargaining power.
	Leverage Ratio.  Permit the Leverage Ratio, as of the last day of any Fiscal Quarter, to be greater than .55 to 1.00.
	Debt Service Coverage.  Permit Debt Service Coverage, as of the last day of any Fiscal Quarter, to be less than 2.0 to 1.00.
	Fixed Charge Coverage.  Permit Fixed Charge Coverage, as of the last day of any Fiscal Quarter, to be less than 1.70 to 1.00.
	Distributions.  Make any Distribution (a) with respect to any Fiscal Quarter or Fiscal Year in excess of (i) an amount equal to 90% of Funds From Operations of Parent and its Subsidiaries for that Fiscal Quarter or Fiscal Year or (ii) an amount equal to 100% of Funds Available for Distribution of Parent and its Subsidiaries for the four (4) consecutive Fiscal Quarters ending prior to the Fiscal Quarter in which such Distribution is paid (provided that Parent shall be permitted to pay the minimum Distribution required under the Code to maintain and preserve Parent's status as a real estate investment trust under the Code, as evidenced by a certification of a Senior Officer of Parent containing calculations in reasonable detail satisfactory in form and substance to the Managing Agent, if such Distribution is greater than the amount set forth in clause (a) (i) and (ii) above), or (b) during the continuance of an Event of Default, in excess of the minimum amount necessary to comply with Section 857(a) of the Code.
	Stockholders' Equity.  Permit Stockholders' Equity, as of the last day of any Fiscal Quarter, to be less than the sum of (a) $325,000,000 plus (b) ninety percent of the net proceeds from any Equity Offering of any Borrower made after the Closing Date.
	Development Investments.  Permit any Borrower or any Subsidiary or Affiliate thereof to engage, directly or indirectly, in the development of Real Property, except that a Borrower or a Subsidiary or Affiliate thereof may (a) hold direct and indirect interests in non-income producing land assets, provided that the book value of such interests does not exceed five percent (5%) of Adjusted Tangible Assets as of the most recently-ended Fiscal Quarter, and (b) develop for its own account properties to be used principally for office, office/laboratory, research or manufacturing/ warehouse purposes, provided that such development shall be limited to such number of projects with respect to which the aggregate cost as of the date of computation of acquiring Real Property (including the non-income producing land assets described in (a) above) and developing, constructing, renovating, rehabilitating and leasing the improvements thereon (assuming the full cost of completion thereof) does not exceed twenty percent (20%) of Adjusted Tangible Assets as of the most recently-ended Fiscal Quarter (such projects are hereinafter referred to collectively as the "Development Investments").  A project shall be considered to be a Development Investment from the issuance of permits for construction until final certificates of occupancy or their equivalent have been issued for the entire project.  For purposes of this Section 6.10, the term "development" shall include new construction or the substantial renovation of improvements to real property.
	Secured Debt.  Permit Secured Debt of Parent and its Subsidiaries to exceed an amount equal to 35% of Adjusted Tangible Assets as of the most recently-ended Fiscal Quarter.
	Recourse Debt.  Permit recourse Indebtedness (whether secured or unsecured) of Parent and its Subsidiaries (excluding the Obligations) to exceed an amount equal to 20% of Adjusted Tangible Assets as of the most recently-ended Fiscal Quarter.
	Investments in Certain Persons.  Make Investments in (a) any Person that is not a Wholly-Owned Subsidiary of Parent existing as of the date hereof or new Wholly-Owned Subsidiaries of Parent acquired or created after the date of this Agreement which become Borrowers except as permitted in Section 6.13(b), or (b) any Person (other than Investments by a Subsidiary of Parent in Parent), if the aggregate value of the Investments pursuant to this Section 6.13(b) shall exceed ten percent (10%) of the Adjusted Tangible Assets as of the most recently-ended Fiscal Quarter.
	Negative Pledges.  Grant to any Person a Negative Pledge on any Revenue-Producing Property of Parent and its Subsidiaries that, as of the later of the Closing Date or the date of its acquisition, is not subject to a Lien (other than Permitted Encumbrances).
	[Intentionally Omitted].
	Limiting Agreements.  Enter into any agreement, instrument or transaction which has or may have the effect of prohibiting or limiting such Borrower's ability to pledge to Managing Agent the Revenue-Producing Property within the Unencumbered Asset Pool.  Borrowers shall take, and shall cause their respective Subsidiaries to take, such actions as are necessary to preserve the right and ability of Borrowers to pledge those Revenue-Producing Properties without any such pledge after the date hereof causing or permitting the acceleration (after the giving of notice or the passage of time, or otherwise) of any other Indebtedness of Borrowers or any of their respective Subsidiaries.  Borrowers shall, upon demand, provide to the Managing Agent such evidence as the Managing Agent may reasonably require to evidence compliance with this Section 6.16, which evidence shall include, without limitation, copies of any agreements or instruments which would in any way restrict or limit a Borrower's ability to pledge assets as security for Indebtedness, or which provide for the occurrence of a default (after the giving of notice or the passage of time, or otherwise) if assets are pledged in the future as security for Indebtedness of such Borrower or any of its Subsidiaries.
	Restriction on Prepayment of Indebtedness.  Prepay the principal amount, in whole or in part, of any Indebtedness other than the Obligations or amounts outstanding under the Revolver after the occurrence of any Event of Default of a monetary nature or consisting of a failure to comply with the covenants contained in Sections 6.5 and 6.6; provided, however, that this Section 6.17 shall not prohibit the prepayment of Indebtedness which is financed solely from the proceeds of a new loan which would otherwise be permitted by the terms of this Agreement; and provided further, however, that any such prepayment of the amounts outstanding under the Revolver shall only be made on a pro rata basis with a simultaneous pro rata prepayment of the Loans.  For purposes herein, such pro rata prepayment shall be determined by dividing the outstanding amount under the Revolver or the Loans, as applicable, by the sum of the amount outstanding under both the Revolver and the Loans and then by multiplying such quotient by the total amount being prepaid. 

	Restrictions on Transfer.  Parent will not, directly or indirectly, make or permit to be made, by voluntary or involuntary means, any sale, assignment, transfer, disposition, mortgage, pledge, hypothecation or encumbrance of its direct or indirect interest in Operating Partnership, ARE, QRS or any other Borrower (provided that the foregoing shall not prohibit transfers of Parent's interest in Operating Partnership, ARE, QRS or any other Borrower provided such Borrower remains a Wholly-Owned Subsidiary of Parent), or any dilution of its direct or indirect interest in Operating Partnership, ARE, QRS or any other Borrower.  Parent shall not in any manner transfer, assign, diminish or otherwise restrict its direct or indirect right to vote or other rights with respect to Operating Partnership, ARE, QRS or any other Borrower.  Notwithstanding the foregoing, Parent may sell, assign, transfer or dispose of its interest in another Borrower (other than Operating Partnership) that is a Subsidiary of Parent, provided that on or before the closing of such sale the Borrower shall have delivered to the Managing Agent a certification, together with such other evidence as Managing Agent may require, that the Borrowers will be in compliance with all covenants in this Agreement after giving effect to such sale, assignment, transfer or other disposition, and provided further that from and after any such sale, the assets of such Borrower shall no longer be included within the Unencumbered Asset Pool.  In the event that the Borrower shall comply with the foregoing provisions, such Borrower shall be released from liability under this Agreement by the Managing Agent.  The Managing Agent may also release a Borrower from liability if all of the Revenue Producing Properties of such Borrower are sold (subject to the requirement in Section 3.1(h) that the gross proceeds of any such sale be deposited with the Managing Agent) or all of the Revenue Producing Properties of such Borrower cease to be Unencumbered, provided that on or before the effective date of such release, the Borrowers shall have delivered to the Managing Agent a certification, together with such other evidence as the Managing Agent may require, that the Borrowers will be in compliance with all covenants in this Agreement after giving effect to such release.

	

INFORMATION AND REPORTING REQUIREMENTS

	Financial and Business Information.  So long as any Loan remains unpaid, or any other Obligation remains unpaid, or any portion of the Commitment remains in force, Borrowers shall, unless the Managing Agent (with the written approval of the Requisite Banks) otherwise consents, at Borrowers' sole expense, deliver to the Managing Agent for distribution by it to the Banks, a sufficient number of copies for all of the Banks of the following:

	As soon as practicable, and in any event within 60 days after the end of each Fiscal Quarter (other than the fourth Fiscal Quarter in any Fiscal Year), the consolidated balance sheet of Parent and its Subsidiaries as at the end of such Fiscal Quarter and the consolidated statements of operations and cash flows for such Fiscal Quarter, and the portion of the Fiscal Year ended with such Fiscal Quarter, all in reasonable detail.  Such financial statements shall be certified by a Senior Officer of Parent as fairly presenting the financial condition, results of operations and cash flows of Parent and its Subsidiaries in accordance with Generally Accepted Accounting Principles (other than footnote disclosures), consistently applied, as at such date and for such periods, subject only to normal year-end accruals and audit adjustments;
	As soon as practicable, and in any event within 60 days after the end of each Fiscal Quarter, a Pricing Certificate setting forth a calculation of the Leverage Ratio as of the last day of such Fiscal Quarter, and providing reasonable detail as to the calculation thereof, which calculations in the case of the fourth Fiscal Quarter in any Fiscal Year shall be based on the preliminary unaudited financial statements of Parent and its Subsidiaries for such Fiscal Quarter, and as soon as practicable thereafter, in the event of any material variance in the actual calculation of the Leverage Ratio from such preliminary calculation, a revised Pricing Certificate setting forth the actual calculation thereof;
	As soon as practicable, and in any event within 60 days after the end of each Fiscal Quarter, statements of operating income for such Fiscal Quarter and Fiscal Year to date for each of the Revenue-Producing Properties in the Unencumbered Asset Pool and a summary Rent Roll for each of the Revenue-Producing Properties in the Unencumbered Asset Pool, each in reasonable detail;
	As soon as practicable, and in any event within 60 days after the end of each Fiscal Quarter, supplemental disclosure information setting forth the effect on Net Income reflected in the financial statements for such Fiscal Quarter and Fiscal Year to date of any difference between the rents payable by tenants during the periods covered by such financial statements and the "straight line" rents payable over the terms of their respective leases, in reasonable detail;
	As soon as practicable, and in any event within 120 days after the end of each Fiscal Year, the consolidated balance sheet of Parent and its Subsidiaries as at the end of such Fiscal Year and the consolidated statements of operations, stockholders' equity and cash flows, in each case of Parent and its Subsidiaries for such Fiscal Year, all in reasonable detail.  Such financial statements shall be prepared in accordance with Generally Accepted Accounting Principles, consistently applied, and shall be accompanied by a report of Ernst & Young LLP or other independent public accountants of recognized standing selected by Parent and reasonably satisfactory to the Requisite Banks, which report shall be prepared in accordance with generally accepted auditing standards as at such date, and shall not be subject to any qualifications or exceptions as to the scope of the audit nor to any other qualification or exception determined by the Requisite Banks in their good faith business judgment to be adverse to the interests of the Banks;
	As soon as practicable, and in any event before the commencement of each Fiscal Year, a budget and projection by Fiscal Quarter for that Fiscal Year and by Fiscal Year for the next two succeeding Fiscal Years, including for the first such Fiscal Year, projected consolidated balance sheets, statements of operations and statements of cash flow and, for the second and third such Fiscal Years, projected consolidated condensed balance sheets and statements of operations and cash flows, of Parent and its Subsidiaries, all in reasonable detail;
	Promptly after request by the Managing Agent or any Bank, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit committee of the board of directors) of Parent by independent accountants in connection with the accounts or books of Parent or any of its Subsidiaries, or any audit of any of them;
	Promptly after the same are available, and in any event within five (5) Banking Days after filing with the Securities and Exchange Commission, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of Parent, and copies of all annual, regular, periodic and special reports and registration statements which Parent may file or be required to file with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and not otherwise required to be delivered to the Banks pursuant to other provisions of this Section 8.1;
	Promptly after request by the Managing Agent or any Bank, copies of any other report or other document that was filed by Borrowers with any Governmental Agency;
	Promptly upon a Senior Officer becoming aware, and in any event within five (5) Banking Days after becoming aware, of the occurrence of any (i) "reportable event" (as such term is defined in Section 4043 of ERISA, but excluding such events as to which the PBGC has by regulation waived the requirement therein contained that it be notified within thirty days of the occurrence of such event) or (ii) non-exempt "prohibited transaction" (as such term is defined in Section 406 of ERISA or Section 4975 of the Code) involving any Pension Plan or any trust created thereunder, telephonic notice specifying the nature thereof, and, no more than two (2) Banking Days after such telephonic notice, written notice again specifying the nature thereof and specifying what action Borrowers are taking or propose to take with respect thereto, and, when known, any action taken by the Internal Revenue Service with respect thereto;
	As soon as practicable, and in any event within two (2) Banking Days after a Senior Officer becomes aware of the existence of any condition or event which constitutes a Default or Event of Default, telephonic notice specifying the nature and period of existence thereof, and, no more than two (2) Banking Days after such telephonic notice, written notice again specifying the nature and period of existence thereof and specifying what action Borrowers are taking or propose to take with respect thereto;
	Promptly upon a Senior Officer becoming aware that (i) any Person has commenced a legal proceeding with respect to a claim against Borrowers that is $1,000,000 or more in excess of the amount thereof that is fully covered by insurance, (ii) any creditor under a credit agreement involving Indebtedness of $1,000,000 or more or any lessor under a lease involving aggregate rent of $1,000,000 or more has asserted a default thereunder on the part of Borrowers or, (iii) any Person has commenced a legal proceeding with respect to a claim against Borrowers under a contract (that is not a credit agreement or material lease) in excess of $1,000,000 or which otherwise may reasonably be expected to result in a Material Adverse Effect, a written notice describing the pertinent facts relating thereto and what action Borrowers are taking or propose to take with respect thereto;
	Promptly upon request after they are filed with the Internal Revenue Service, copies of all annual federal income tax returns and amendments thereto of each of the Borrowers;
	Not later than sixty (60) days after the end of each fiscal quarter of the Borrowers (including the fourth fiscal quarter in each year), a list (which may be included in the Compliance Certificates) setting forth the following information with respect to each new Subsidiary or Controlled Entity of any of the Borrowers: (i) the name, structure and ownership of the Subsidiary or Controlled Entity, (ii) a description of the property owned by such Subsidiary or Controlled Entity, and (iii) such other information as the Managing Agent may reasonably request;
	Simultaneously with the delivery of the financial statement referred to in Section 7.1(e) above (if such information is not otherwise included in the financial statement or other information presented to the Banks pursuant to this Section 7.1), a statement (which may be included in the Compliance Certificates) listing (i) the Real Property owned by Parent and its Subsidiaries (or in which Parent or its Subsidiaries owns an interest) and stating the location thereof, the date acquired and the acquisition cost, (ii) the Indebtedness of Parent and its Subsidiaries, which statement shall include, without limitation, a statement of the original principal amount of such Indebtedness and the current amount outstanding, the holder thereof, the maturity date and any extension options, the interest rate, the collateral provided for such Indebtedness and whether such Indebtedness is recourse or non-recourse, and (iii) the properties of Parent and its respective Subsidiaries which are under "development" (as used in Section 6.10) and providing a brief summary of the status of such development;
	Contemporaneously with the release thereof, copies of all press releases or other public announcements;
	Promptly upon a Senior Officer becoming aware of a change in the credit rating given by a Rating Agency to Parent's long-term senior unsecured debt or any announcement that any rating is "under review" or that such rating has been placed on a watch list or that any similar action has been taken by a Rating Agency, written notice of such change, announcement or action;
	When and as required by Section 2.11, the information regarding each Qualified Unencumbered Asset Pool Property, as more particularly described in Section 2.11;
	When and as required by Section 5.17(b), the information regarding the Unencumbered Asset Pool, as more particularly described in Section 5.17(b); and
	Such other data and information as from time to time may be reasonably requested by the Managing Agent, any Bank (through the Managing Agent) or the Requisite Banks.

Notwithstanding the foregoing, unless otherwise required by Managing Agent in its sole and absolute discretion, in the event that the Managing Agent and the managing agent under the Revolver are the same entity, Borrowers shall be entitled to simultaneously deliver to Managing Agent and the managing agent under the Revolver one set of the documents referred to in items (a) - (i), (m), (n), (o), (p), (q), (r) and (s)  above, provided, however, that Borrowers shall provide to Managing Agent separate certificates or certifications referred to in such items (a)-(i), (m), (n), (o), (p), (q) (r) and (s) above which certificates and certifications shall specifically refer to this Agreement, the Loans and the Obligations.  

	Compliance Certificates.  So long as any Loan remains unpaid, or any other Obligation remains unpaid or unperformed, or any portion of the Commitment remains outstanding, Borrowers shall, at Borrowers' sole expense, deliver to the Managing Agent for distribution by it to the Banks concurrently with the financial statements required pursuant to Sections 7.1(a), 7.1(c) and 7.1(e), Compliance Certificates signed by a Senior Officer.

	

CONDITIONS

	Closing Conditions.  The obligation of each Bank to make the initial Loan to be made by it is subject to the following conditions precedent, each of which shall be satisfied prior to the making of the initial Loan (unless all of the Banks, in their sole and absolute discretion, shall agree otherwise):

	The Managing Agent shall have received all of the following, each of which shall be originals unless otherwise specified, each properly executed by a Responsible Official of each party thereto, each dated as of the Closing Date and each in form and substance satisfactory to the Managing Agent and its legal counsel (unless otherwise specified or, in the case of the date of any of the following, unless the Managing Agent otherwise agrees or directs):

	at least one (1) executed counterpart of this Agreement, together with arrangements satisfactory to the Managing Agent for additional executed counterparts, sufficient in number for distribution to the Banks and Borrowers;
	Notes executed by Borrowers in favor of each Bank, each in a principal amount equal to that Bank's Pro Rata Share of the Commitment;
	[Intentionally Omitted];
	[Intentionally Omitted];
	with respect to each of Borrowers, such documentation as the Managing Agent may require to establish the due organization, valid existence and good standing of each of Borrowers, its qualification to engage in business in each material jurisdiction in which it is engaged in business or required to be so qualified, its authority to execute, deliver and perform the Loan Documents to which it is a Party, the identity, authority and capacity of each Responsible Official thereof authorized to act on its behalf, including certified copies of articles of incorporation and amendments thereto, bylaws and amendments thereto, certificates of good standing and/or qualification to engage in business, tax clearance certificates, certificates of corporate resolutions, incumbency certificates, Certificates of Responsible Officials, and the like;
	the Opinions of Counsel;
	such other assurances, certificates, documents, consents or opinions as the Managing Agent or the Requisite Banks reasonably may require.

	The closing fee payable pursuant to Section 3.2 shall have been paid.
	Any agency fees payable on the Closing Date pursuant to Section 3.5 shall have been paid.
	The reasonable costs and expenses of the Managing Agent in connection with the preparation of the Loan Documents payable pursuant to Section 11.3, and invoiced to Borrowers prior to the Closing Date, shall have been paid.
	The representations and warranties of Borrowers contained in Article 4 shall be true and correct in all material respects.
	Borrowers and any other Parties shall be in compliance with all the terms and provisions of the Loan Documents, and giving effect to the initial Loan no Default or Event of Default shall have occurred and be continuing.
	All legal matters relating to the Loan Documents shall be satisfactory to Long Aldridge & Norman, LLP, special counsel to the Managing Agent.
	The Managing Agent shall have received a Compliance Certificate dated as of the date of the Closing Date demonstrating compliance with each of the covenants calculated therein as of the most recent Fiscal Quarter end for which the Borrowers have provided financial statements under Section 7.1 adjusted in the best good faith estimate of the Borrowers dated as of the date of the Closing Date.
	The Managing Agent shall have reviewed such other documents, instruments, certificates, opinions, assurances, consents and approvals as the Managing Agent or the Managing Agent's special counsel may reasonably have requested.
	Any Loan.  The obligation of each Bank to make any Loan is subject to the following conditions precedent (unless the Requisite Banks, in their sole and absolute discretion, shall agree otherwise):

	except (i) for representations and warranties which expressly speak as of a particular date or are no longer true and correct as a result of a change which is permitted by this Agreement or (ii) as disclosed by Borrowers and approved in writing by the Requisite Banks, the representations and warranties contained in Article 4 (other than Sections 4.4, 4.6 (first sentence), 4.10 and 4.18 to the extent such representations relate expressly to an earlier date) shall be true and correct in all material respects on and as of the date of the Loan as though made on that date;
	other than matters described in Schedule 4.10 or not required as of the Closing Date to be therein described, there shall not be then pending or threatened any action, suit, proceeding or investigation against or affecting Parent or any of its Subsidiaries or any Property of any of them before any Governmental Agency that constitutes a Material Adverse Effect;
	the Managing Agent shall have timely received a Request for Loan in compliance with Article 2 (or telephonic or other request for Loan referred to in the second sentence of Section 2.1(c), if applicable), in compliance with Article 2;
	no Default or Event of Default shall have occurred and be continuing;
	the Managing Agent shall have received a current calculation of the Borrowing Base with such supporting information as the Managing Agent may require adjusted in the best good faith estimate of the Borrowers to the date of such certification; and

	the Managing Agent shall have received, in form and substance satisfactory to the Managing Agent, such other assurances, certificates, documents or consents related to the foregoing as the Managing Agent or Requisite Banks reasonably may require.

	

EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT

	Events of Default.  The existence or occurrence of any one or more of the following events, whatever the reason therefor and under any circumstances whatsoever, shall constitute an Event of Default:

	Borrowers fail to pay any principal on any of the Notes, or any portion thereof, on the date when due; or
	Borrowers fail to pay any interest on any of the Notes, or any fees under Section 3.5, or any portion thereof, within five (5) Banking Days after the date when due; or fail to pay any other fee or amount payable to the Banks or the Managing Agent under any Loan Document, or any portion thereof, within five (5) Banking Days after demand therefor; or
	Borrowers fail to comply with any of the covenants contained in Article 6; or
	Borrowers fail to comply with Section 7.1(k) in any respect that is materially adverse to the interests of the Banks; or
	Any Borrower or any other Party fails to perform or observe any other covenant or agreement (not specified in clause (a), (b), (c) or (d) above) contained in any Loan Document on its part to be performed or observed within thirty (30) Banking Days after the giving of notice by the Managing Agent on behalf of the Requisite Banks of such Default or, if such Default is not reasonably susceptible of cure within such period, within such longer period as is reasonably necessary to effect a cure so long as such Borrower or such Party continues to diligently pursue cure of such Default but not in any event in excess of sixty (60) Banking Days; or
	Any representation or warranty of Borrowers made in any Loan Document, or in any certificate or other writing delivered by Borrowers  pursuant to any Loan Document, proves to have been incorrect when made or reaffirmed in any respect that is materially adverse to the interests of the Banks; or
	Borrowers (i) fail to pay the principal, or any principal installment, of any present or future Indebtedness (other than Non-Recourse Debt) of $5,000,000 or more, or any guaranty of present or future Indebtedness (other than Non-Recourse Debt) of $5,000,000 or more, on its part to be paid, when due (or within any stated grace period), whether at the stated maturity, upon acceleration, by reason of required prepayment or otherwise or (ii) fails to perform or observe any other term, covenant or agreement on its part to be performed or observed, or suffers any event of default to occur, in connection with any present or future Indebtedness (other than Non-Recourse Debt) of $5,000,000 or more, or of any guaranty of present or future Indebtedness (other than Non-Recourse Debt) of $5,000,000 or more, if as a result of such failure or sufferance any holder or holders thereof (or an agent or trustee on its or their behalf) has the right to declare such Indebtedness due before the date on which it otherwise would become due or the right to require Borrowers to redeem or purchase, or offer to redeem or purchase, all or any portion of such Indebtedness (provided, that for the purpose of this clause (g), the principal amount of Indebtedness consisting of a Swap Agreement shall be the amount which is then payable by the counterparty to close out the Swap Agreement); or
	Any Loan Document, at any time after its execution and delivery and for any reason other than the agreement or action (or omission to act) of the Managing Agent or the Banks or satisfaction in full of all the Obligations ceases to be in full force and effect or is declared by a court of competent jurisdiction to be null and void, invalid or unenforceable in any respect which is materially adverse to the interests of the Banks; or any Party thereto denies in writing that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind same; or
	A final judgment against any of Borrowers is entered for the payment of money in excess of $1,000,000 (not covered by insurance or for which an insurer has reserved its rights) and, absent procurement of a stay of execution, such judgment remains unsatisfied for thirty (30) calendar days after the date of entry of judgment, or in any event later than five (5) days prior to the date of any proposed sale thereunder; or any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the Property of any such Person and is not released, vacated or fully bonded within thirty (30) calendar days after its issue or levy; or
	Any of Borrowers institutes or consents to the institution of any proceeding under a Debtor Relief Law relating to it or to all or any material part of its Property, or is unable or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its Property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of that Person and the appointment continues undischarged or unstayed for sixty (60) calendar days; or any proceeding under a Debtor Relief Law relating to any such Person or to all or any part of its Property is instituted without the consent of that Person and continues undismissed or unstayed for sixty (60) calendar days or such Person consents thereto or acquiesces therein, or a decree or order for relief is entered in respect of any such Person in such proceeding; or
	The occurrence of an Event of Default (as such term is or may hereafter be specifically defined in any other Loan Document) under any other Loan Document; or
	Any Pension Plan maintained by Borrowers is determined to have a material "accumulated funding deficiency" as that term is defined in Section 302 of ERISA in excess of an amount equal to 5% of the combined total assets of Borrowers as of the most-recently ended Fiscal Quarter; or
	During any twelve (12) consecutive month period, Joel S. Marcus shall cease to be the Chief Executive Officer of Parent, and either of the following two (2) persons (or any successor who was previously approved as provided herein) shall cease to occupy the following positions:  Peter Nelson shall cease to be the Chief Financial Officer of Parent, and Jerry M. Sudarsky shall cease to be the Chairman of the Parent; provided that the foregoing shall not constitute an Event of Default if a competent and experienced successor for such Person shall be approved by the Requisite Banks within six (6) months of such event, such approval not to be unreasonably withheld; or
	The occurrence of an Event of Default (as such term is defined in the Revolver) under the Revolver.

	Remedies Upon Event of Default.  Without limiting any other rights or remedies of the Managing Agent or the Banks provided for elsewhere in this Agreement, or the other Loan Documents, or by applicable Law, or in equity, or otherwise:

	Upon the occurrence, and during the continuance, of any Event of Default other than an Event of Default described in Section 9.1(j):

	the Commitments to make Loans and all obligations of the Managing Agent or the Banks and all rights of Borrowers and any other Parties under the Loan Documents shall be suspended without notice to or demand upon Borrowers, which are expressly waived by Borrowers, except that all of the Banks or the Requisite Banks (as the case may be, in accordance with Section 12.1) may waive an Event of Default or, without waiving, determine, upon terms and conditions satisfactory to the Banks or Requisite Banks, as the case may be, to reinstate the Commitment and such other obligations and rights and make further Loans, which waiver or determination shall apply equally to, and shall be binding upon, all the Banks; and
	the Requisite Banks may request the Managing Agent to, and the Managing Agent thereupon shall, terminate any unfunded portion of the Commitment and/or declare all or any part of the unpaid principal of all Notes, all interest accrued and unpaid thereon and all other amounts payable under the Loan Documents to be forthwith due and payable, whereupon the same shall become and be forthwith due and payable, without protest, presentment, notice of dishonor, demand or further notice of any kind, all of which are expressly waived by Borrowers.

	Upon the occurrence of any Event of Default described in Section 9.1(j):

	the Commitments to make Loans and all obligations of the Managing Agent or the Banks and all rights of Borrowers and any other Parties under the Loan Documents shall terminate without notice to or demand upon Borrowers, which are expressly waived by Borrowers, except that all of the Banks or the Requisite Banks (as the case may be, in accordance with Section 12.1) may waive the Event of Default or, without waiving, determine, upon terms and conditions satisfactory to all the Banks, to reinstate the Commitment and such other obligations and rights and make further Loans, which determination shall apply equally to, and shall be binding upon, all the Banks; and
	the unpaid principal of all Notes, all interest accrued and unpaid thereon and all other amounts payable under the Loan Documents shall be forthwith due and payable, all without protest, presentment, notice of dishonor, demand or further notice of any kind, all of which are expressly waived by Borrowers.

	Upon the occurrence of any Event of Default, the Banks and the Managing Agent, or any of them through the Managing Agent, without notice to (except as expressly provided for in any Loan Document) or demand upon Borrowers, which are expressly waived by Borrowers (except as to notices expressly provided for in any Loan Document), may proceed (but only with the consent of the Requisite Banks) to protect, exercise and enforce their rights and remedies under the Loan Documents against Borrowers and any other Party and such other rights and remedies as are provided by Law or equity.
	The order and manner in which the Banks' rights and remedies are to be exercised shall be determined by the Requisite Banks in their sole discretion, and all payments received by the Managing Agent and the Banks, or any of them, shall be applied first to the costs and expenses (including reasonable attorneys' fees and disbursements and the reasonably allocated costs of attorneys employed by the Managing Agent or by any Bank) of the Managing Agent and of the Banks, and thereafter paid pro rata to the Banks in the same proportions that the aggregate Obligations owed to each Bank under the Loan Documents bear to the aggregate Obligations owed under the Loan Documents to all the Banks, without priority or preference among the Banks.  Regardless of how each Bank may treat payments for the purpose of its own accounting, for the purpose of computing Borrowers' Obligations hereunder and under the Notes, payments shall be applied first, to the costs and expenses of the Managing Agent and the Banks, as set forth above, second, to the payment of accrued and unpaid interest due under any Loan Documents to and including the date of such application (ratably, and without duplication, according to the accrued and unpaid interest due under each of the Loan Documents), third, to the payment of any termination payments due from the Borrowers in respect of Swap Agreements, and fourth, to the payment of all other amounts (including principal and fees) then owing to the Managing Agent or the Banks under the Loan Documents.  No application of payments will cure any Event of Default, or prevent acceleration, or continued acceleration, of amounts payable under the Loan Documents, or prevent the exercise, or continued exercise, of rights or remedies of the Banks hereunder or thereunder or at Law or in equity.
	[Intentionally Omitted].

	

THE MANAGING AGENT

	Appointment and Authorization.  Subject to Section 10.8, each Bank hereby irrevocably appoints and authorizes the Managing Agent to take such action as agent on its behalf and to exercise such powers under the Loan Documents as are delegated to the Managing Agent by the terms thereof or are reasonably incidental, as determined by the Managing Agent, thereto.  This appointment and authorization is intended solely for the purpose of facilitating the servicing of the Loans and does not constitute appointment of the Managing Agent as trustee for any Bank or as representative of any Bank for any other purpose and, the Managing Agent shall take such action and exercise such powers only in an administrative and ministerial capacity.
	Managing Agent and Affiliates.  Fleet (and each successor Managing Agent in its individual capacity) has the same rights and powers under the Loan Documents as any other Bank and may exercise the same as though it were not the Managing Agent, and the term "Bank" or "Banks" includes Fleet in its individual capacity.  Fleet (and each successor Managing Agent in its individual capacity) and its Affiliates may accept deposits from, lend money to and generally engage in any kind of banking, trust or other business with Borrowers, any Subsidiary thereof, or any Affiliate of Borrowers or any Subsidiary thereof, as if it were not the Managing Agent and without any duty to account therefor to the Banks.  Fleet (and each successor Managing Agent in its individual capacity) need not account to any other Bank for any monies received by it for reimbursement of its costs and expenses as Managing Agent hereunder, or for any monies received by it in its capacity as a Bank hereunder, other than as required of any Bank hereunder.  The Managing Agent shall not be deemed to hold a fiduciary or agency relationship with any Bank and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise exist against the Managing Agent.  The provisions of this Section 10.2 shall apply equally to any other agents named herein.
	Proportionate Interest in any Collateral.  The Managing Agent, on behalf of all the Banks, shall hold in accordance with the Loan Documents all items of any collateral or interests therein received or held by the Managing Agent.  Subject to the Managing Agent's and the Banks' rights to reimbursement for their costs and expenses hereunder (including reasonable attorneys' fees and disbursements and other professional services and the reasonably allocated costs of attorneys employed by the Managing Agent or a Bank) and subject to the application of payments in accordance with Section 9.2(d), each Bank shall have an interest in the Managing Agent's interest in such collateral or interests therein in the same proportions that the aggregate Obligations owed such Bank under the Loan Documents bear to the aggregate Obligations owed under the Loan Documents to all the Banks, without priority or preference among the Banks.
	Banks' Credit Decisions.  Each Bank agrees that it has, independently and without reliance upon the Managing Agent, any other Bank or the directors, officers, agents, employees or attorneys of the Managing Agent or of any other Bank, and instead in reliance upon information supplied to it by or on behalf of Borrowers and upon such other information as it has deemed appropriate, made its own independent credit analysis and decision to enter into this Agreement.  Each Bank also agrees that it shall, independently and without reliance upon the Managing Agent, any other Bank or the directors, officers, agents, employees or attorneys of the Managing Agent or of any other Bank, continue to make its own independent credit analyses and decisions in acting or not acting under the Loan Documents.
	Action by Managing Agent.

	Absent actual knowledge of the Managing Agent of the existence of a Default, the Managing Agent may assume that no Default has occurred and is continuing, unless the Managing Agent has received notice from Borrowers stating the nature of the Default or has received notice from a Bank stating the nature of the Default and that such Bank considers the Default to have occurred and to be continuing.
	The Managing Agent has only those obligations under the Loan Documents as are expressly set forth therein.

	Except for any obligation expressly set forth in the Loan Documents and as long as the Managing Agent may assume that no Default has occurred and is continuing, the Managing Agent may, but shall not be required to, exercise its discretion to act or not act, except that the Managing Agent shall be required to comply with the instructions of the Requisite Banks (or of all the Banks, to the extent required by Section 12.1) and those instructions shall be binding upon the Managing Agent and all the Banks, provided that the Managing Agent shall not be required to comply with such instructions if to do so would be contrary to any Loan Document or to applicable Law or would result, in the reasonable judgment of the Managing Agent, in substantial risk of liability to the Managing Agent.
	If the Managing Agent has received a notice specified in clause (a) or has actual knowledge of the existence of a Default, the Managing Agent shall immediately give notice thereof to the Banks and shall comply with the instructions of the Requisite Banks (or of all the Banks, to the extent required by Section 12.1), provided that the Managing Agent shall not be required to comply with such instructions if to do so would be contrary to any Loan Document or to applicable Law or would result, in the reasonable judgment of the Managing Agent, in substantial risk of liability to the Managing Agent, and except that if the Requisite Banks (or all the Banks, if required under Section 12.1) fail, for five (5) Banking Days after the receipt of notice from the Managing Agent, to instruct the Managing Agent, then the Managing Agent, in its sole discretion, may act or not act as it deems advisable for the protection of the interests of the Banks.
	Liability of Managing Agent.  Neither the Managing Agent nor any of its directors, officers, agents, employees or attorneys shall be liable for any action taken or not taken by them under or in connection with the Loan Documents, except for their own gross negligence or willful misconduct.  Without limitation on the foregoing, the Managing Agent and its directors, officers, agents, employees and attorneys:

	May treat the payee of any Note as the holder thereof until the Managing Agent receives notice of the assignment or transfer thereof, in form satisfactory to the Managing Agent, signed by the payee, and may treat each Bank as the owner of that Bank's interest in the Obligations for all purposes of this Agreement until the Managing Agent receives notice of the assignment or transfer thereof, in form satisfactory to the Managing Agent, signed by that Bank;
	May consult with legal counsel (including in-house legal counsel), accountants (including in-house accountants) and other professionals or experts selected by it, or with legal counsel, accountants or other professionals or experts for Borrowers and/or their Subsidiaries or the Banks, and shall not be liable for any action taken or not taken by it in good faith in accordance with any advice of such legal counsel, accountants or other professionals or experts;
	Shall not be responsible to any Bank for any statement, warranty or representation made in any of the Loan Documents or in any notice, certificate, report, request or other statement (written or oral) given or made in connection with any of the Loan Documents;
	Shall have no duty to ask or inquire as to the performance or observance by Borrowers or its Subsidiaries of any of the terms, conditions or covenants of any of the Loan Documents or to inspect any collateral or any Property, books or records of Borrowers or their Subsidiaries;
	Will not be responsible to any Bank for the due execution, legality, validity, enforceability, genuineness, effectiveness, sufficiency or value of any Loan Document, any other instrument or writing furnished pursuant thereto or in connection therewith, or any collateral;
	Will not incur any liability by acting or not acting in reliance upon any Loan Document, notice, consent, certificate, statement, request or other instrument or writing believed in good faith by it to be genuine and signed or sent by the proper party or parties;
	Will not incur any liability for any arithmetical error in computing any amount paid or payable by the Borrowers or any Subsidiary or Affiliate thereof or paid or payable to or received or receivable from any Bank under any Loan Document, including, without limitation, principal, interest, commitment fees, Loans and other amounts; provided that, promptly upon discovery of such an error in computation, the Managing Agent, the Banks and (to the extent applicable) Borrowers and/or their Subsidiaries or Affiliates shall make such adjustments as are necessary to correct such error and to restore the parties to the position that they would have occupied had the error not occurred; and
	Have not made nor do they now make any representations or warranties, express or implied, nor does it assume any liability to the Banks, with respect to the creditworthiness or financial condition of the Borrowers, their respective partners or members or any of their respective Subsidiaries, the value of their respective assets or the collectability of the Loans.

	Indemnification.  Each Bank shall, ratably in accordance with its Pro Rata Share of the Commitment, indemnify and hold the Managing Agent and its directors, officers, agents, employees and attorneys harmless against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever (including reasonable attorneys' fees and disbursements and allocated costs of attorneys employed by the Managing Agent) that may be imposed on, incurred by or asserted against it or them in any way relating to or arising out of the Loan Documents (other than losses incurred by reason of the failure of Borrowers to pay the Indebtedness represented by the Notes) or any action taken or not taken by it as Managing Agent thereunder, except such as result from its own gross negligence or willful misconduct.  Without limitation on the foregoing, each Bank shall reimburse the Managing Agent upon demand for that Bank's Pro Rata Share of any out-of-pocket cost or expense incurred by the Managing Agent in connection with the negotiation, preparation, execution, delivery, amendment, waiver, restructuring, reorganization (including a bankruptcy reorganization), enforcement or attempted enforcement of the Loan Documents, to the extent that any Borrower or any other Party is required by Section 11.3 to pay that cost or expense but fails to do so upon demand.  Nothing in this Section 10.7 shall entitle the Managing Agent or any indemnitee referred to above to recover any amount from the Banks if and to the extent that such amount has theretofore been recovered from Borrowers or any of their Subsidiaries.  To the extent that the Managing Agent or any indemnitee referred to above is later reimbursed such amount by Borrowers or any of its Subsidiaries, it shall return the amounts paid to it by the Banks in respect of such amount.
	Successor Managing Agent.  The Managing Agent may, and at the request of the Requisite Banks shall, resign as Managing Agent upon reasonable notice to the Banks and Borrowers effective upon acceptance of appointment by a successor Managing Agent.  If the Managing Agent shall resign as Managing Agent under this Agreement, the Requisite Banks shall appoint from among the Banks a successor Managing Agent for the Banks, which successor Managing Agent shall be approved by Borrowers so long as no Default or Event of Default has occurred and is continuing (and such approval shall not be unreasonably withheld or delayed).  If no successor Managing Agent is appointed prior to the effective date of the resignation of the Managing Agent, the Managing Agent may appoint, after consulting with the Banks and, so long as no Default or Event of Default has occurred and is continuing the Borrowers, a successor Managing Agent from among the Banks.  Upon the acceptance of its appointment as successor Managing Agent hereunder, such successor Managing Agent shall succeed to all the rights, powers and duties of the retiring Managing Agent and the term "Managing Agent" shall mean such successor Managing Agent and the retiring Managing Agent's appointment, powers and duties as Managing Agent shall be terminated.  After any retiring Managing Agent's resignation hereunder as Managing Agent, the provisions of this Article 10, and Sections 11.3, 11.11 and 11.22, shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Managing Agent under this Agreement.  Notwithstanding the foregoing, if (a) the Managing Agent has not been paid its agency fees under Section 3.5 or has not been reimbursed for any expense reimbursable to it under Section 11.3, in either case for a period of at least one (1) year and (b) no successor Managing Agent has accepted appointment as Managing Agent by the date which is thirty (30) days following a retiring Managing Agent's notice of resignation, the retiring Managing Agent's resignation shall nevertheless thereupon become effective and the Banks shall perform all of the duties of the Managing Agent hereunder until such time, if any, as the Requisite Banks appoint a successor Managing Agent as provided for above.
	No Obligations of Borrowers.  Nothing contained in this Article 10 shall be deemed to impose upon Borrowers any obligation in respect of the due and punctual performance by the Managing Agent of its obligations to the Banks under any provision of this Agreement, and Borrowers shall have no liability to the Managing Agent or any of the Banks in respect of any failure by the Managing Agent or any Bank to perform any of its obligations to the Managing Agent or the Banks under this Agreement.  Without limiting the generality of the foregoing, where any provision of this Agreement relating to the payment of any amounts due and owing under the Loan Documents provides that such payments shall be made by Borrowers to the Managing Agent for the account of the Banks, Borrowers' obligations to the Banks in respect of such payments shall be deemed to be satisfied upon the making of such payments to the Managing Agent in the manner provided by this Agreement.

	

MISCELLANEOUS

	Cumulative Remedies; No Waiver.  The rights, powers, privileges and remedies of the Managing Agent and the Banks provided herein or in any Note or other Loan Document are cumulative and not exclusive of any right, power, privilege or remedy provided by Law or equity.  No failure or delay on the part of the Managing Agent or any Bank in exercising any right, power, privilege or remedy may be, or may be deemed to be, a waiver thereof; nor may any single or partial exercise of any right, power, privilege or remedy preclude any other or further exercise of the same or any other right, power, privilege or remedy.  The terms and conditions of Article 8 hereof are inserted for the sole benefit of the Managing Agent and the Banks; the same may be waived in whole or in part, with or without terms or conditions, in respect of any Loan without prejudicing the Managing Agent's or the Banks' rights to assert them in whole or in part in respect of any other Loan.
	[Intentionally Omitted].
	Costs, Expenses and Taxes.  Borrowers shall pay within five (5) Banking Days after demand, accompanied by an invoice therefor, the reasonable costs and expenses of the Managing Agent in connection with the negotiation, preparation, syndication, execution, delivery and interpretation of the Loan Documents and any amendment thereto or waiver thereof.  Borrowers shall also pay on demand, accompanied by an invoice therefor, the reasonable costs and expenses of the Managing Agent and the Banks in connection with the refinancing, restructuring, reorganization (including a bankruptcy reorganization) and enforcement or attempted enforcement of the Loan Documents, and any matter related thereto.  The foregoing costs and expenses shall include filing fees, recording fees, title insurance fees, appraisal fees, search fees, and other out-of-pocket expenses and the reasonable fees and out-of-pocket expenses of any legal counsel (including reasonably allocated costs of legal counsel employed by the Managing Agent or any Bank), independent public accountants and other outside experts retained by the Managing Agent or any Bank, whether or not such costs and expenses are incurred or suffered by the Managing Agent or any Bank in connection with or during the course of any bankruptcy or insolvency proceedings of any of Borrowers or any Subsidiary thereof.  Borrowers shall pay any and all documentary and other taxes, excluding (i) taxes imposed on or measured in whole or in part by any Bank's overall net income imposed on such Bank by (A) any jurisdiction (or political subdivision thereof) in which such Bank is organized or maintains its principal office or LIBOR Lending Office or (B) any jurisdiction (or political subdivision thereof) in which such Bank is "doing business" or (ii) any withholding taxes or other taxes based on gross income imposed by the United States of America for any period with respect to which any Bank has failed to provide Borrowers with the appropriate form or forms required by Section 11.21, to the extent such forms are then required by applicable Laws, and all costs, expenses, fees and charges payable or determined to be payable in connection with the filing or recording of this Agreement, any other Loan Document or any other instrument or writing to be delivered hereunder or thereunder, or in connection with any transaction pursuant hereto or thereto, and shall reimburse, hold harmless and indemnify on the terms set forth in 11.11 the Managing Agent and the Banks from and against any and all loss, liability or legal or other expense with respect to or resulting from any delay in paying or failure to pay any such tax, cost, expense, fee or charge or that any of them may suffer or incur by reason of the failure of any Party to perform any of its Obligations.  Any amount payable to the Managing Agent or any Bank under this Section 11.3 shall bear interest from the fifth Banking Day following the date of demand for payment at the Default Rate.
	Nature of Banks' Obligations.  The obligations of the Banks hereunder are several and not joint or joint and several.  Nothing contained in this Agreement or any other Loan Document and no action taken by the Managing Agent or the Banks or any of them pursuant hereto or thereto may, or may be deemed to, make the Banks a partnership, an association, a joint venture or other entity, either among themselves or with the Borrowers or any Affiliate of any of Borrowers.  A default by any Bank will not increase the Pro Rata Share of the Commitment attributable to any other Bank.  Any Bank not in default may, if it desires, assume in such proportion as the nondefaulting Banks agree the obligations of any Bank in default, but is not obligated to do so.  The Managing Agent agrees that it will use reasonable best efforts either to induce the other Banks to assume the obligations of a Bank in default or to obtain another Bank, reasonably satisfactory to Borrowers, to replace such a Bank in default.  A defaulting Bank's right to participate in the administration of the Loan Documents, including, without limitation, any rights to consent to or direct any action or inaction of the Managing Agent or to vote on any matter presented to the Banks shall be suspended during the pendency of such Bank's default.
	Survival of Representations and Warranties.  All representations and warranties contained herein or in any other Loan Document, or in any certificate or other writing delivered by or on behalf of any one or more of the Parties to any Loan Document, will survive the making of the Loans hereunder and the execution and delivery of the Notes, and have been or will be relied upon by the Managing Agent and each Bank, notwithstanding any investigation made by the Managing Agent or any Bank or on their behalf.
	Notices.  Except as otherwise expressly provided in the Loan Documents, all notices, requests, demands, directions and other communications provided for hereunder or under any other Loan Document must be in writing and must be mailed, telegraphed, telecopied, dispatched by commercial courier or delivered to the appropriate party at the address set forth on the signature pages of this Agreement or other applicable Loan Document or, as to any party to any Loan Document, at any other address as may be designated by it in a written notice sent to all other parties to such Loan Document in accordance with this Section.  Except as otherwise expressly provided in any Loan Document, if any notice, request, demand, direction or other communication required or permitted by any Loan Document is given by mail it will be effective on the earlier of receipt or the fourth Banking Day after deposit in the United States mail with first class or airmail postage prepaid; if given by telegraph or cable, when delivered to the telegraph company with charges prepaid; if given by telecopier, when sent; if dispatched by commercial courier, on the scheduled delivery date; or if given by personal delivery, when delivered.
	Execution of Loan Documents.  Unless the Managing Agent otherwise specifies with respect to any Loan Document, (a) this Agreement and any other Loan Document may be executed in any number of counterparts and any party hereto or thereto may execute any counterpart, each of which when executed and delivered will be deemed to be an original and all of which counterparts of this Agreement or any other Loan Document, as the case may be, when taken together will be deemed to be but one and the same instrument and (b) execution of any such counterpart may be evidenced by a telecopier transmission of the signature of such party.  The execution of this Agreement or any other Loan Document by any party hereto or thereto will not become effective until counterparts hereof or thereof, as the case may be, have been executed by all the parties hereto or thereto.
	Binding Effect; Assignment.

	This Agreement and the other Loan Documents to which Borrowers are a Party will be binding upon and inure to the benefit of Borrowers, the Managing Agent, each of the Banks, and their respective successors and assigns, except that Borrowers may not assign their rights hereunder or thereunder or any interest herein or therein without the prior written consent of all the Banks.  Each Bank represents that it is not acquiring its Note with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (subject to any requirement that disposition of such Note must be within the control of such Bank).  Any Bank may at any time pledge its Note or any other instrument evidencing its rights as a Bank under this Agreement to a Federal Reserve Bank, but no such pledge shall release that Bank from its obligations hereunder or grant to such Federal Reserve Bank the rights of a Bank hereunder absent foreclosure of such pledge.
	From time to time following the Closing Date, each Bank may assign to one or more Eligible Assignees all or any portion of its Pro Rata Share of the Commitment; provided that (i) such Eligible Assignee, if not then a Bank or an Affiliate of the assigning Bank, shall be approved by the Managing Agent and (if no Event of Default then exists) Borrowers (neither of which approvals shall be unreasonably withheld or delayed), (ii) such assignment shall be evidenced by a Commitment Assignment and Acceptance, a copy of which together with any Notes subject to such assignment shall be furnished to the Managing Agent as hereinbelow provided, (iii) except in the case of an assignment to an Affiliate of the assigning Bank, to another Bank or of the entire remaining Commitment of the assigning Bank, the assignment shall not assign a Pro Rata Share of the Commitment that is equivalent to less than $10,000,000, (iv) the assignment shall be of a constant, and not a varying, percentage of the Assignor's rights and obligations under this Agreement, and (v) the effective date of any such assignment shall be as specified in the Commitment Assignment and Acceptance, but not earlier than the date which is five (5) Banking Days after the date the Managing Agent has received the Commitment Assignment and Acceptance unless otherwise agreed by the Managing Agent.  Upon the effective date of such Commitment Assignment and Acceptance, the Eligible Assignee named therein shall be a Bank for all purposes of this Agreement, with the Pro Rata Share of the Commitment therein set forth and, to the extent of such Pro Rata Share, the assigning Bank shall be released from its further obligations under this Agreement.  Borrowers agree that they shall execute and deliver (against delivery by the assigning Bank to Borrowers of its Note) to such assignee Bank, Notes evidencing that assignee Bank's Pro Rata Share of the Commitment, and to the assigning Bank, Notes evidencing the remaining balance Pro Rata Share retained by the assigning Bank.  
	By executing and delivering a Commitment Assignment and Acceptance, the Eligible Assignee thereunder acknowledges and agrees that: (i) other than the representation and warranty of the assigning Bank that it is the legal and beneficial owner of the Pro Rata Share of the Commitment being assigned thereby free and clear of any adverse claim, neither the assigning Bank nor the Managing Agent has made any representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness or sufficiency of this Agreement or any other Loan Document; (ii) neither the assigning Bank nor the Managing Agent has made any representation or warranty and assumes no responsibility with respect to the financial condition of Borrowers or the performance by Borrowers of the Obligations; (iii) it has received a copy of this Agreement, together with copies of the most recent financial statements delivered pursuant to Section 7.1 and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Commitment Assignment and Acceptance; (iv) it will, independently and without reliance upon the Managing Agent or any Bank and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) it appoints and authorizes the Managing Agent to take such action and to exercise such powers under this Agreement as are delegated to the Managing Agent by this Agreement; and (vi) it will perform in accordance with their terms all of the obligations which by the terms of this Agreement are required to be performed by it as a Bank.
	The Managing Agent shall maintain at the Managing Agent's Office a copy of each Commitment Assignment and Acceptance delivered to it and a register (the "Register") of the names and address of each of the Banks and the Pro Rata Share of the Commitment held by each Bank, giving effect to each Commitment Assignment and Acceptance.  The Register shall be available during normal business hours for inspection by Borrowers or any Bank upon reasonable prior notice to the Managing Agent.  After receipt of a completed Commitment Assignment and Acceptance executed by any Bank and an Eligible Assignee and the Notes subject to such assignment, and receipt of an assignment fee of $2,500 from such Bank or Eligible Assignee, the Managing Agent shall, promptly following the effective date thereof, provide to Borrowers and the Banks a revised Schedule 1.1 giving effect thereto.  Borrowers, the Managing Agent and the Banks shall deem and treat the Persons listed as Banks in the Register as the holders and owners of the Pro Rata Share of the Commitment listed therein for all purposes hereof, and no assignment or transfer of any such Pro Rata Share of the Commitment shall be effective, in each case unless and until a Commitment Assignment and Acceptance effecting the assignment or transfer thereof shall have been accepted by the Managing Agent and recorded in the Register as provided above.  Prior to such recordation, all amounts owed with respect to the applicable Pro Rata Share of the Commitment shall be owed to the Bank listed in the Register as the owner thereof, and any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is listed in the Register as a Bank shall be conclusive and binding on any subsequent holder, assignee or transferee of the corresponding Pro Rata Share of the Commitment.
	Each Bank may from time to time grant participations to one or more banks or other financial institutions (including another Bank but excluding an Employee Plan) in a portion of its Pro Rata Share of the Commitment; provided, however, that (i) such Bank's obligations under this Agreement shall remain unchanged, (ii) such Bank shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) the participating banks or other financial institutions shall not be a Bank hereunder for any purpose except, if the participation agreement so provides, for the purposes of Sections 3.7, 3.8, 11.11 and 11.22 but only to the extent that the cost of such benefits to Borrowers does not exceed the cost which Borrowers would have incurred in respect of such Bank absent the participation, (iv) Borrowers, the Managing Agent and the other Banks shall continue to deal solely and directly with such Bank in connection with such Bank's rights and obligations under this Agreement, (v) the participation interest shall be expressed as a percentage of the granting Bank's Pro Rata Share of the Commitment as it then exists and shall not afford such participant any rights or privileges under the Loan Documents except as provided in clause (iii) above.

	Right of Setoff.  If an Event of Default has occurred and is continuing, the Managing Agent or any Bank (but in each case only with the consent of the Requisite Banks and subject to the provisions of Section 11.10) may exercise its rights under Article 9 of the Uniform Commercial Code and other applicable Laws and, to the extent permitted by applicable Laws, apply any funds in any deposit account maintained with it by Borrowers and/or any Property of Borrowers in its possession against the Obligations.
	Sharing of Setoffs.  Each Bank severally agrees that if it, through the exercise of any right of setoff, banker's lien or counterclaim against Borrowers, or otherwise, receives payment of the Obligations held by it that is ratably more than any other Bank, through any means, receives in payment of the Obligations held by that Bank, then, subject to applicable Laws:  (a) the Bank exercising the right of setoff, banker's lien or counterclaim or otherwise receiving such payment shall purchase, and shall be deemed to have simultaneously purchased, from each of the other Banks a participation in the Obligations held by the other Banks and shall pay to the other Banks a purchase price in an amount so that the share of the Obligations held by each Bank after the exercise of the right of setoff, banker's lien or counterclaim or receipt of payment shall be in the same proportion that existed prior to the exercise of the right of setoff, banker's lien or counterclaim or receipt of payment; and (b) such other adjustments and purchases of participations shall be made from time to time as shall be equitable to ensure that all of the Banks share any payment obtained in respect of the Obligations ratably in accordance with each Bank's share of the Obligations immediately prior to, and without taking into account, the payment; provided that, if all or any portion of a disproportionate payment obtained as a result of the exercise of the right of setoff, banker's lien, counterclaim or otherwise is thereafter recovered from the purchasing Bank by Borrowers or any Person claiming through or succeeding to the rights of Borrowers, the purchase of a participation shall be rescinded and the purchase price thereof shall be restored to the extent of the recovery, but without interest (unless the Bank from which such payment is recovered is required to pay interest thereon, in which case each Bank returning funds to such Bank shall pay its pro rata share of such interest).  Each Bank that purchases a participation in the Obligations pursuant to this Section 11.10 shall from and after the purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Bank were the original owner of the Obligations purchased.  Borrowers expressly consent to the foregoing arrangements and agree that any Bank holding a participation in an Obligation so purchased pursuant to this Section 11.10 may exercise any and all rights of setoff, banker's lien or counterclaim with respect to the participation as fully as if the Bank were the original owner of the Obligation purchased.
	Indemnity by Borrowers.  Borrowers agree to indemnify, save and hold harmless the Managing Agent and each Bank and their respective directors, officers, agents, attorneys and employees (collectively the "Indemnitees") from and against:  (a) any and all claims, demands, actions or causes of action (except a claim, demand, action, or cause of action for any amount excluded from the definition of "Taxes" in Section 3.12(d)) if the claim, demand, action or cause of action arises out of or relates to any act or omission (or alleged act or omission) of Borrowers, their Affiliates or any of their officers, directors or stockholders relating to the Commitment, the use or contemplated use of proceeds of any Loan, or the relationship of Borrowers and the Banks under this Agreement; (b) any administrative or investigative proceeding by any Governmental Agency arising out of or related to a claim, demand, action or cause of action described in clause (a) above; and (c) any and all liabilities, losses, costs or expenses (including reasonable attorneys' fees and the reasonably allocated costs of attorneys employed by any Indemnitee and disbursements of such attorneys and other professional services) that any Indemnitee suffers or incurs as a result of the assertion of any foregoing claim, demand, action or cause of action; provided that no Indemnitee shall be entitled to indemnification for any loss caused by its own gross negligence or willful misconduct or for any loss asserted against it by another Indemnitee.  If any claim, demand, action or cause of action is asserted against any Indemnitee, such Indemnitee shall promptly notify Borrowers, but the failure to so promptly notify Borrowers shall not affect Borrowers' obligations under this Section unless such failure materially prejudices Borrowers' right to participate in the contest of such claim, demand, action or cause of action, as hereinafter provided.  Such Indemnitee may (and shall, if requested by Borrowers in writing) contest the validity, applicability and amount of such claim, demand, action or cause of action and shall permit Borrowers to participate in such contest.  Any Indemnitee that proposes to settle or compromise any claim or proceeding for which Borrowers may be liable for payment of indemnity hereunder shall give Borrowers written notice of the terms of such proposed settlement or compromise reasonably in advance of settling or compromising such claim or proceeding and shall obtain Borrowers' prior consent (which shall not be unreasonably withheld or delayed).  In connection with any claim, demand, action or cause of action covered by this Section 11.11 against more than one Indemnitee, all such Indemnitees shall be represented by the same legal counsel (which may be a law firm engaged by the Indemnitees or attorneys employed by an Indemnitee or a combination of the foregoing) selected by the Indemnitees and reasonably acceptable to Borrowers; provided, that if such legal counsel determines in good faith that representing all such Indemnitees would or could result in a conflict of interest under Laws or ethical principles applicable to such legal counsel or that a defense or counterclaim is available to an Indemnitee that is not available to all such Indemnitees, then to the extent reasonably necessary to avoid such a conflict of interest or to permit unqualified assertion of such a defense or counterclaim, each affected Indemnitee shall be entitled to separate representation by legal counsel selected by that Indemnitee and reasonably acceptable to Borrowers, with all such legal counsel using reasonable efforts to avoid unnecessary duplication of effort by counsel for all Indemnitees; and further provided that the Managing Agent (as an Indemnitee) shall at all times be entitled to representation by separate legal counsel (which may be a law firm or attorneys employed by the Managing Agent or a combination of the foregoing).  Any obligation or liability of Borrowers to any Indemnitee under this Section 11.11 shall survive the expiration or termination of this Agreement and the repayment of all Loans and the payment and performance of all other Obligations owed to the Banks.
	Nonliability of the Banks.  Borrowers acknowledge and agree that:

	Any inspections of any Property of Borrowers made by or through the Managing Agent or the Banks are for purposes of administration of the Loan only and Borrowers are not entitled to rely upon the same (whether or not such inspections are at the expense of Borrowers);
	By accepting or approving anything required to be observed, performed, fulfilled or given to the Managing Agent or the Banks pursuant to the Loan Documents, neither the Managing Agent nor the Banks shall be deemed to have warranted or represented the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof, and such acceptance or approval thereof shall not constitute a warranty or representation to anyone with respect thereto by the Managing Agent or the Banks;
	The relationship between Borrowers and the Managing Agent and the Banks is, and shall at all times remain, solely that of borrowers and lenders; neither the Managing Agent nor the Banks shall under any circumstance be construed to be partners or joint venturers of Borrowers or their Affiliates; neither the Managing Agent nor the Banks shall under any circumstance be deemed to be in a relationship of confidence or trust or a fiduciary relationship with Borrowers or their Affiliates, or to owe any fiduciary duty to Borrowers or their Affiliates; neither the Managing Agent nor the Banks undertake or assume any responsibility or duty to Borrowers or their Affiliates to select, review, inspect, supervise, pass judgment upon or inform Borrowers or their Affiliates of any matter in connection with their Property or the operations of Borrowers or their Affiliates; Borrowers and their Affiliates shall rely entirely upon their own judgment with respect to such matters; and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by the Managing Agent or the Banks in connection with such matters is solely for the protection of the Managing Agent and the Banks and neither Borrowers nor any other Person is entitled to rely thereon; and
	The Managing Agent and the Banks shall not be responsible or liable to any Person for any loss, damage, liability or claim of any kind relating to injury or death to Persons or damage to Property caused by the actions, inaction or negligence of Borrowers and/or its Affiliates and Borrowers hereby indemnify and hold the Managing Agent and the Banks harmless on the terms set forth in Section 11.11 from any such loss, damage, liability or claim.

	No Third Parties Benefited.  This Agreement is made for the purpose of defining and setting forth certain obligations, rights and duties of Borrowers, the Managing Agent and the Banks in connection with the Loans, and is made for the sole benefit of Borrowers, the Managing Agent and the Banks, and the Managing Agent's and the Banks' successors and assigns.  Except as provided in Sections 11.8 and 11.11, no other Person shall have any rights of any nature hereunder or by reason hereof.
	Confidentiality.  Each Bank agrees to hold any confidential information that it may receive from Borrowers pursuant to this Agreement in confidence, except for disclosure:  (a) to other Banks; (b) to legal counsel and accountants for Borrowers or any Bank; (c) to other professional advisors to Borrowers or any Bank, provided that the recipient has accepted such information subject to a confidentiality agreement substantially similar to this Section 11.14; (d) to regulatory officials having jurisdiction over that Bank; (e) as required by Law or legal process, provided that each Bank agrees to notify Borrowers of any such disclosures unless prohibited by applicable Laws, or in connection with any legal proceeding to which that Bank and any of Borrowers are adverse parties; and (f) to another financial institution in connection with a disposition or proposed disposition to that financial institution of all or part of that Bank's interests hereunder or a participation interest in its Notes, provided that the recipient has accepted such information subject to a confidentiality agreement substantially similar to this Section 11.14.  For purposes of the foregoing, "confidential information" shall mean any information respecting Parent or its Subsidiaries that when delivered to the Managing Agent or the Banks is clearly marked by Borrowers to be confidential, other than (i) information previously filed with any Governmental Agency and available to the public, (ii) information previously published in any public medium from a source other than, directly or indirectly, that Bank, and (iii) information previously disclosed by Borrowers to any Person not associated with Borrowers which does not owe a professional duty of confidentiality to Borrowers or which has not executed an appropriate confidentiality agreement with Borrowers.  Nothing in this Section shall be construed to create or give rise to any fiduciary duty on the part of the Managing Agent or the Banks to Borrowers.
	Further Assurances.  Borrowers shall, at their expense and without expense to the Banks or the Managing Agent, do, execute and deliver such further acts and documents as the Requisite Banks or the Managing Agent from time to time reasonably require for the assuring and confirming unto the Banks or the Managing Agent of the rights hereby created or intended now or hereafter so to be, or for carrying out the intention or facilitating the performance of the terms of any Loan Document.
	Integration.  This Agreement, together with the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof and supersedes all prior agreements, written or oral, on the subject matter hereof.  In the event of any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control and govern; provided that the inclusion of supplemental rights or remedies in favor of the Managing Agent or the Banks in any other Loan Document shall not be deemed a conflict with this Agreement.  Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.
	Governing Law.  Except to the extent otherwise provided therein, each Loan Document shall be governed by, and construed and enforced in accordance with, the Laws of California applicable to contracts made and performed in California.
	Severability of Provisions.  Any provision in any Loan Document that is held to be inoperative, unenforceable or invalid as to any party or in any jurisdiction shall, as to that party or jurisdiction, be inoperative, unenforceable or invalid without affecting the remaining provisions or the operation, enforceability or validity of that provision as to any other party or in any other jurisdiction, and to this end the provisions of all Loan Documents are declared to be severable.
	Headings.  Article and Section headings in this Agreement and the other Loan Documents are included for convenience of reference only and are not part of this Agreement or the other Loan Documents for any other purpose.
	Time of the Essence.  Time is of the essence of the Loan Documents.
	Foreign Banks and Participants.  Each Bank that is incorporated or otherwise organized under the Laws of a jurisdiction other than the United States of America or any State thereof or the District of Columbia shall deliver to Borrowers (with a copy to the Managing Agent), on or before the Closing Date (or on or before accepting an assignment or receiving a participation interest herein pursuant to Section 11.8, if applicable) two duly completed copies, signed by a Responsible Official, of either Form 1098 W8-BEN (relating to such Bank and entitling it to a complete exemption from withholding on all payments to be made to such Bank by Borrowers pursuant to this Agreement) or Form 1098 W8-ECI (relating to all payments to be made to such Bank by the Borrowers pursuant to this Agreement) of the United States Internal Revenue Service or such other evidence (including, if reasonably necessary, Form W-9) satisfactory to Borrowers and the Managing Agent that no withholding under the federal income tax laws is required with respect to such Bank.  Thereafter and from time to time, each such Bank shall (a) promptly submit to Borrowers (with a copy to the Managing Agent), such additional duly completed and signed copies of one of such forms (or such successor forms as shall be adopted from time to time by the relevant United States taxing authorities) as may then be available under then current United States laws and regulations to avoid, or such evidence as is satisfactory to Borrowers and the Managing Agent of any available exemption from, United States withholding taxes in respect of all payments to be made to such Bank by Borrowers pursuant to this Agreement and (b) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Bank, and as may be reasonably necessary (including the re-designation of its LIBOR Lending Office, if any) to avoid any requirement of applicable Laws that Borrowers make any deduction or withholding for taxes from amounts payable to such Bank.  In the event that Borrowers or the Managing Agent become aware that a participation has been granted pursuant to Section 11.8(e) to a financial institution that is incorporated or otherwise organized under the Laws of a jurisdiction other than the United States of America, any State thereof or the District of Columbia, then, upon request made by Borrowers or the Managing Agent to the Bank which granted such participation, such Bank shall cause such participant financial institution to deliver the same documents and information to Borrowers and the Managing Agent as would be required under this Section if such financial institution were a Bank.
	Hazardous Material Indemnity.  Each of Borrowers hereby agrees to indemnify, hold harmless and defend (by counsel reasonably satisfactory to the Managing Agent) the Managing Agent and each of the Banks and their respective directors, officers, employees, agents, successors and assigns from and against any and all claims, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders, judgments, remedial action requirements, enforcement actions of any kind, and all costs and expenses incurred in connection therewith (including but not limited to reasonable attorneys' fees and the reasonably allocated costs of attorneys employed by the Managing Agent or any Bank, and expenses to the extent that the defense of any such action has not been assumed by Borrowers), arising directly or indirectly out of (i) the presence on, in, under or about any Real Property of any Hazardous Materials, or any releases or discharges of any Hazardous Materials on, under or from any Real Property and (ii) any activity carried on or undertaken on or off any Real Property by Borrowers or any of its predecessors in title, whether prior to or during the term of this Agreement, and whether by Borrowers or any predecessor in title or any employees, agents, contractors or subcontractors of Borrowers or any predecessor in title, or any third persons at any time occupying or present on any Real Property, in connection with the handling, treatment, removal, storage, decontamination, clean-up, transport or disposal of any Hazardous Materials at any time located or present on, in, under or about any Real Property.  The foregoing indemnity shall further apply to any residual contamination on, in, under or about any Real Property, or affecting any natural resources, and to any contamination of any Property or natural resources arising in connection with the generation, use, handling, storage, transport or disposal of any such Hazardous Materials, and irrespective of whether any of such activities were or will be undertaken in accordance with applicable Laws, but the foregoing indemnity shall not apply to Hazardous Materials on any Real Property, the presence of which is caused by the Managing Agent or the Banks.  Borrowers hereby acknowledge and agree that, notwithstanding any other provision of this Agreement or any of the other Loan Documents to the contrary, the obligations of Borrowers under this Section (and under Sections 4.17 and 5.10) shall be unlimited corporate obligations of Borrowers and shall not be secured by any Lien on any Real Property.  Any obligation or liability of Borrowers to any Indemnitee under this Section 11.22 shall survive the expiration or termination of this Agreement and the repayment of all Loans and the payment and performance of all other Obligations owed to the Banks.
	Joint and Several.  Each of Borrowers shall be obligated for all of the Obligations on a joint and several basis, notwithstanding which of Borrowers may have directly received the proceeds of the Loans.  Each of Borrowers acknowledges and agrees that, for purposes of the Loan Documents, Borrowers constitute a single integrated financial enterprise and that each receives a benefit from the availability of credit under this Agreement to all of Borrowers.  Each of Borrowers waive all defenses arising under the Laws of suretyship, to the extent such Laws are applicable, in connection with its joint and several obligations under this Agreement.  Without limiting the foregoing, each of Borrowers agrees to the Joint Borrower Provisions set forth in Exhibit L, incorporated by this reference.
	Removal of a Bank.  Borrowers shall have the right to remove a Bank as a party to this Agreement if such Bank refuses (under certain circumstances) to consent to an extension of the Maturity Date made pursuant to Section 2.10 or if such Bank is paid a material amount by Borrowers pursuant to Section 3.7 or Section 3.8.  Upon notice from Borrowers, such Bank shall execute and deliver a Commitment Assignment and Acceptance covering that Bank's Pro Rata Share of the Commitment in favor of such Eligible Assignee as Borrowers may designate with the approval of the Managing Agent, subject to payment in full by such Eligible Assignee of all principal, interest and fees and any other amount owing to such Bank through the date of assignment.  
	Waiver of Right to Trial by Jury.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
	Purported Oral Amendments.  BORROWERS EXPRESSLY ACKNOWLEDGE THAT THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY ONLY BE AMENDED OR MODIFIED, OR THE PROVISIONS HEREOF OR THEREOF WAIVED OR SUPPLEMENTED, BY AN INSTRUMENT IN WRITING THAT COMPLIES WITH SECTION 12.1.  BORROWERS AGREE THAT THEY WILL NOT RELY ON ANY COURSE OF DEALING, COURSE OF PERFORMANCE, OR ORAL OR WRITTEN STATEMENTS BY ANY REPRESENTATIVE OF THE MANAGING AGENT OR ANY BANK THAT DOES NOT COMPLY WITH SECTION 12.1 TO EFFECT AN AMENDMENT, MODIFICATION, WAIVER OR SUPPLEMENT TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.
	Replacement of Notes.  Upon receipt of evidence reasonably satisfactory to the Borrowers of the loss, theft, destruction or mutilation of any Note, and in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory to the Borrowers or, in the case of any such mutilation, upon surrender and cancellation of the applicable Note, the Borrowers will execute and deliver, in lieu thereof, a replacement Note, identical in form and substance to the applicable Note and dated as of the date of the applicable Note and upon such execution and delivery all references in the Loan Documents to such Note shall be deemed to refer to such replacement Note.

	

AMENDMENTS; CONSENTS

	Amendments; Consents.  No amendment, modification, supplement, extension, termination or waiver of any provision of this Agreement or any other Loan Document, no approval or consent thereunder, and no consent to any departure by Borrowers or any other Party therefrom, may in any event be effective unless in writing signed by the Requisite Banks (and, in the case of any amendment, modification or supplement of or to any Loan Document to which any of Borrowers is a Party, signed by each such Party, and, in the case of any amendment, modification or supplement to Section 3.5 or Article 10, signed by the Managing Agent), and then only in the specific instance and for the specific purpose given; and, without the approval in writing of all the Banks, no amendment, modification, supplement, termination, waiver or consent may be effective:

	To amend, modify, forgive, reduce or waive the principal of, or the amount of principal, principal prepayments or the rate of interest payable on, any Note, or the amount of the Commitment or the Pro Rata Share of any Bank or the amount of any fee or amount payable to any Bank under the Loan Documents or to waive an Event of Default consisting of the failure of Borrowers to pay when due principal, interest or any fee;
	To postpone any date fixed for any payment of principal of, prepayment of principal of or any installment of interest on, any Note or any installment of any fee, or to extend the term of the Commitment;
	To amend the provisions of the definition of "Requisite Banks" or "Maturity Date"; or
	To amend or waive Article 8 or this Section 12.1; or
	To amend any provision of this Agreement that expressly requires the consent or approval of all of the Banks to require a lesser number of Banks to approve such action; or
	To release any Borrower except as provided in Section 6.18; or
	To change the manner of distribution of any payments to the Banks or the Managing Agent.
	To require a Bank to fund more than its Pro Rata Share of a Request for Loan.

Notwithstanding anything herein to the contrary, the Managing Agent may with the approval of the Majority Banks temporarily waive compliance by Borrowers with any condition, obligation or covenant contained in this Agreement or the Loan Documents (other than a failure to make a payment of any principal, interest or fee when due) for a period not to exceed ninety (90) days, provided, however, that any such condition, obligation or covenant so waived may not be consecutively waived after the expiration of such ninety (90) day period.  Any amendment, modification, supplement, termination, waiver or consent pursuant to this Section 12.1 shall apply equally to, and shall be binding upon, all the Banks and the Managing Agent.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

ALEXANDRIA REAL ESTATE EQUITIES, INC.

 

By:/s/  Peter J. Nelson

Its:   CFO

 

ALEXANDRIA REAL ESTATE EQUITIES, L.P.

By:ARE-QRS Corp., its general partner

 
By:/s/  Peter J. Nelson

Its:  CFO

 

ARE-QRS CORP.

 

By:/s/  Peter J. Nelson

Its:   CFO

 

ARE ACQUISITIONS, LLC

ARE-940 CLOPPER ROAD, LLC

ARE-1201 HARBOR BAY, LLC

ARE-1401 RESEARCH BOULEVARD, LLC

ARE-1500 EAST GUDE, LLC

ARE-JOHN HOPKINS COURT, LLC

By: ARE-QRS Corp., their managing member

 

By:/s/  Peter J. Nelson

Its:  CFO

 

 

ARE-4757 NEXUS CENTRE, LLC

ARE-215 COLLEGE ROAD, LLC

ARE-819/863 MITTEN ROAD, LLC

ARE-150/154 TECHNOLOGY PARKWAY, LLC

ARE-8000/9000/10000 VIRGINIA MANOR, LLC

ARE-19 FIRSTFIELD ROAD, LLC

ARE-10150 OLD COLUMBIA, LLC

ARE-170 WILLIAMS DRIVE, LLC

ARE-3005 FIRST AVENUE, LLC

ARE-15020 SHADY GROVE, LLC

ARE-5 TRIANGLE DRIVE, LLC

ARE-50 WEST WATKINS MILL, LLC

ARE-100 PHILLIPS PARKWAY, LLC

ARE-279 PRINCETON ROAD, LLC

ARE-2001 ALICEANNA STREET, LLC

ARE-3770 TANSY STREET, LLC

ARE-10505 ROSELLE STREET, LLC

ARE-9363/9373/9393 TOWN CENTRE, LLC

ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

ARE-108 ALEXANDER ROAD, LLC

ARE-480 ARSENAL STREET, LLC

ARE-500 ARSENAL STREET, LLC

ARE-930 CLOPPER ROAD, LLC

ARE-2140 DURANT AVENUE, LLC

ARE-129/153/161 HILL STREET, LLC

ARE-7030 KIT CREEK, LLC

ARE-6146 NANCY RIDGE, LLC

ARE-29 HARTWELL AVENUE, LLC

By:Alexandria Real Estate Equities, L.P., their sole member

By:ARE-QRS Corp., its general partner

 

By:/s/  Peter J. Nelson

Its:   CFO

 

ARE-79/96 CHARLESTOWN NAVY YARD, LLC

ARE-280 POND STREET, LLC

ARE-60 WESTVIEW, LLC

ARE-381 PLANTATION STREET, LLC

By:AREE-Holdings, L.P., their managing member

By:ARE-GP Holdings QRS Corp., its general partner

 

By:/s/  Peter J. Nelson

Its:   CFO

 

ARE-5100/5110 CAMPUS DRIVE, L.P.

ARE-702 ELECTRONIC DRIVE, L.P.

By:AREE-Holdings, L.P., their general partner

By:ARE-GP Holdings QRS Corp., its general partner

 

By:/s/  Peter J. Nelson
Its:   CFO

 

ARE-10933 NORTH TORREY PINES, LLC

ARE-11099 NORTH TORREY PINES, LLC

By:Alexandria Real Estate Equities, Inc., their sole member

 

By:/s/  Peter J. Nelson

Its:   CFO

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.

135 N. Los Robles Avenue, Suite 250

Pasadena, California 91101

Attn: Mr. Joel S. Marcus, Chief Executive Officer

Telephone:(626) 578-0777

Telecopier:(626) 578-0770

FLEET NATIONAL BANK, individually and as Managing Agent

 

By:/s/  Daniel P. Stegemoeller

Dan Stegemoeller

Director

Address:

FLEET NATIONAL BANK

100 Federal Street

Boston, Massachusetts 02110

Attn: Real Estate Division

with a copy to:

FLEET NATIONAL BANK

115 Perimeter Center Place, N.E., Suite 500

Atlanta, Georgia 30346

Attn: Mr. Dan Stegemoeller, Director

Telephone:(770) 390-6547

Telecopier:(770) 390-8434

 

 

EXHIBIT A

COMMITMENT ASSIGNMENT AND ACCEPTANCE

THIS COMMITMENT ASSIGNMENT AND ACCEPTANCE ("Agreement") dated as of ___________, 200__ is made with reference to that certain Term Loan Agreement dated as of September ___, 2001 (as amended, extended, renewed, supplemented or otherwise modified through the date hereof, the "Loan Agreement") by and among Alexandria Real Estate Equities, Inc., a Maryland corporation ("Parent"), Alexandria Real Estate Equities, L.P., a Delaware limited partnership ("Operating Partnership"), ARE-QRS Corp., a Maryland corporation ("QRS"), ARE Acquisitions, LLC, a Delaware limited liability company ("ARE"), the other borrowers whose names are set forth on the signature pages of the Loan Agreement, each other Wholly-Owned Subsidiary of Parent which may hereafter become a party to the Loan Agreement as a borrower (collectively, with Parent, Operating Partnership, QRS and ARE, the "Borrowers," all on a joint and several basis), each bank whose name is set forth on the signature pages of the Loan Agreement and each lender which thereafter may have become a party to the Loan Agreement (collectively, the "Banks" and individually, a "Bank"), and Fleet National Bank, as Managing Agent, and is entered into between the "Assignor" described below, in its capacity as a Bank under the Loan Agreement, and the "Assignee" described below.

Assignor and Assignee hereby represent, warrant and agree as follows:

	Definitions.  Capitalized terms defined in the Loan Agreement are used herein with the meanings set forth for such terms in the Loan Agreement.  As used in this Agreement, the following capitalized terms shall have the meanings set forth below:

"Assignee" means [insert name of transferee].

"Assigned Pro Rata Share" means % of the Commitment of the Banks under the Loan Agreement which equals $.

"Assignor" means [insert name of transferor].

"Effective Date" means , 200__, the effective date of this Agreement determined in accordance with Section 11.8 of the Loan Agreement.

	Representations and Warranties of the Assignor.  The Assignor represents and warrants to the Assignee as follows:

	As of the date hereof, the Pro Rata Share of the Assignor is % of the Commitment (without giving effect to assignments thereof which have not yet become effective).  The Assignor is the legal and beneficial owner of the Assigned Pro Rata Share and the Assigned Pro Rata Share is free and clear of any adverse claim.
	As of the date hereof, the outstanding principal balance of Loans made by the Assignor under the Assignor's Note is $.
	The Assignor has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and any and all other documents required or permitted to be executed or delivered by it in connection with this Agreement and to fulfill its obligations under, and to consummate the transactions contemplated by, this Agreement, and no governmental authorizations or other authorizations are required in connection therewith; and
	This Agreement constitutes the legal, valid and binding obligation of the Assignor.

Neither the Assignor nor the Managing Agent makes any representation or warranty and assumes no responsibility with respect to the financial condition of Borrowers or the performance by Borrowers of the Obligations, and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Agreement or the execution, legality, validity, enforceability, genuineness, or sufficiency of the Loan Agreement or any Loan Document other than as expressly set forth above.

	Representations and Warranties of the Assignee.  The Assignee hereby represents and warrants to the Assignor as follows:

	The Assignee has full power and authority, and has taken all action necessary, to execute and deliver this Agreement, and any and all other documents required or permitted to be executed or delivered by it in connection with this Agreement and to fulfill its obligations under, and to consummate the transactions contemplated by, this Agreement, and no governmental authorizations or other authorizations are required in connection therewith;
	This Agreement constitutes the legal, valid and binding obligation of the Assignee;
	The Assignee has independently and without reliance upon the Managing Agent or Assignor and based on such documents and information as the Assignee has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  The Assignee will, independently and without reliance upon the Managing Agent or any Bank, and based upon such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Agreement;
	The Assignee has received copies of such of the Loan Documents delivered pursuant to Section 8.1 of the Loan Agreement as it has requested, together with copies of the most recent financial statements delivered pursuant to Section 7.1 of the Loan Agreement;
	The Assignee will perform in accordance with their respective terms all of the obligations which by the terms of the Loan Agreement are required to be performed by it as a Bank;
	The Assignee is an Eligible Assignee; and
	The Assignee restates each and every warranty of Assignee set forth in Section 11.8 of the Loan Agreement.

	Assignment.  On the terms set forth herein, the Assignor, as of the Effective Date, hereby irrevocably sells, assigns and transfers to the Assignee all of the rights and obligations of the Assignor under the Loan Agreement, the other Loan Documents and the Assignor's Notes to the extent of the Assigned Pro Rata Share and the Assignee irrevocably accepts such assignment of rights and assumes such obligations from the Assignor on such terms and effective as of the Effective Date.  As of the Effective Date, the Assignee shall have the rights and obligations of a "Bank" under the Loan Documents, except to the extent of any arrangements with respect to payments referred to in Section 5 hereof.  Assignee hereby appoints and authorizes the Managing Agent, to take such action and to exercise such powers under the Loan Agreement as are delegated to the Managing Agent by the Loan Agreement.

	Payment.  On the Effective Date, the Assignee shall pay to the Assignor, in immediately available funds, an amount equal to the purchase price of the Assigned Pro Rata Share, as agreed between the Assignor and the Assignee pursuant to a letter agreement of even date herewith.  Assignee shall also pay to the Managing Agent, as a condition to the effectiveness of this Agreement, an assignment fee of $2,500 in accordance with Section 11.8 of the Loan Agreement.

	Principal, Interest, Fees, etc.  From and after the Effective Date all payments in respect of the interests assigned hereunder accruing after the Effective Date (including payments of principal, interest, fees and other amounts) shall be payable to Assignee.  All outstanding LIBOR Rate Loans shall continue in effect for the remainder of their applicable Interest Periods and Assignee shall accept the currently effective interest rates on its assigned interest of each LIBOR Rate Loan.  The Assignor and the Assignee hereby agree that if either receives any payment of interest, principal, fees or any other amount under the Loan Agreement, their respective Notes or any other Loan Documents which is for the account of the other, it shall hold the same in trust for such party to the extent of such party's interest therein and shall promptly pay the same to such party.

	Notes.  The Assignor and the Assignee shall make appropriate arrangements with the Borrowers concurrently with the execution and delivery hereof so that replacement Notes are issued to the Assignor and new Notes, are issued to the Assignee in principal amounts reflecting their Pro Rata Shares of the Commitment and their outstanding Loans (as adjusted pursuant to this Agreement).

	Further Assurances.  The Assignor and the Assignee agree to execute and deliver such other instruments, and take such other action, as either party may reasonably request in connection with the transactions contemplated by this Agreement, and the Assignor specifically agrees to cause the delivery of two original counterparts of this Agreement to the Managing Agent for the purpose of registration of the Assignee as a "Bank" pursuant to Section 11.8 of the Loan Agreement.

	Governing Law.  THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA.

	Notices.  All communications among the parties or notices in connection herewith shall be in writing, hand delivered or sent by U.S.  registered mail, postage prepaid, or by telecopy, addressed to the appropriate party at its address set forth on the signature pages hereof.  All such communications and notices shall be effective upon receipt.

	Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, that the Assignee shall not assign its rights or obligations without the prior written consent of the Assignor and any purported assignment, absent such consent, shall be void.

	Interpretation.  The headings of the various sections hereof are for convenience of reference only and shall not affect the meaning or construction of any provision hereof.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their respective officials, officers or agents hereunto duly authorized as of the date first above written.
"Assignor"

By:

Printed Name and Title

Address:

 

Telephone:

Telecopier:

 

"Assignee"

By:

Printed Name and Title

Address:

 

Telephone:

Telecopier:

 

CONSENT OF MANAGING AGENT AND BORROWERS

[When Required Pursuant to Term Loan Agreement]

TO:The Assignor and Assignee referred to in the Commitment Assignment and Acceptance to which this Consent is attached

When countersigned by Managing Agent and (when applicable) Borrowers below, this document shall certify that:
[ ][CHECK HERE IF BORROWERS' SIGNATURE IS REQUIRED PURSUANT TO SECTION 11.8(b)(i) OF THE TERM LOAN AGREEMENT:]

1.Borrowers have consented, pursuant to the terms of the Loan Documents, to the assignment by the Assignor to the Assignee of the Assigned Pro Rata Share.

2.Managing Agent has registered the Assignee as a Bank under the Loan Agreement, effective as of the Effective Date described above, with a Pro Rata Share of the Commitment corresponding to the Assigned Pro Rata Share and has adjusted the registered Pro Rata Share of the Commitment of the Assignor to reflect the assignment of the Assigned Pro Rata Share.

Approved:
ALEXANDRIA REAL ESTATE EQUITIES, INC.

By:___________________________

Its:

ALEXANDRIA REAL ESTATE EQUITIES, L.P.

By: ARE-QRS Corp., its general partner

By:___________________________

Its:

ARE-QRS CORP.

By:___________________________

Its:

 

ARE ACQUISITIONS, LLC

ARE-940 CLOPPER ROAD, LLC

ARE-1201 HARBOR BAY, LLC

ARE-1401 RESEARCH BOULEVARD, LLC

ARE-1500 EAST GUDE, LLC

ARE-JOHN HOPKINS COURT, LLC
By:ARE-QRS Corp., their managing member
By:___________________________

Its:

ARE-4757 NEXUS CENTRE, LLC

ARE-215 COLLEGE ROAD, LLC

ARE-819/863 MITTEN ROAD, LLC

ARE-150/154 TECHNOLOGY PARKWAY, LLC
ARE-8000/9000/10000 VIRGINIA MANOR, LLC

ARE-19 FIRSTFIELD ROAD, LLC

ARE-10150 OLD COLUMBIA, LLC

ARE-170 WILLIAMS DRIVE, LLC

ARE-3005 FIRST AVENUE, LLC

ARE-15020 SHADY GROVE, LLC
ARE-5 TRIANGLE DRIVE, LLC

ARE-50 WEST WATKINS MILL, LLC

ARE-100 PHILLIPS PARKWAY, LLC

ARE-279 PRINCETON ROAD, LLC

ARE-2001 ALICEANNA STREET, LLC

ARE-3770 TANSY STREET, LLC

ARE-10505 ROSELLE STREET, LLC

ARE-9363/9373/9393 TOWN CENTRE, LLC
ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

ARE-108 ALEXANDER ROAD, LLC

ARE-480 ARSENAL STREET, LLC

ARE-500 ARSENAL STREET, LLC

ARE-930 CLOPPER ROAD, LLC

ARE-2140 DURANT AVENUE, LLC

ARE-129/153/161 HILL STREET, LLC

ARE-7030 KIT CREEK, LLC

ARE-6146 NANCY RIDGE, LLC

ARE-29 HARTWELL AVENUE, LLC

By:Alexandria Real Estate Equities, L.P., their sole member

By:ARE-QRS Corp., its general partner

By:____________________________
Its:

ARE-79/96 CHARLESTOWN NAVY YARD, LLC

ARE-280 POND STREET, LLC
ARE-60 WESTVIEW, LLC

ARE-381 PLANTATION STREET, LLC
By:AREE-Holdings, L.P., their managing member
By:ARE-GP Holdings QRS Corp., its general partner

By:_________________________
Its:

ARE-5100/5110 CAMPUS DRIVE, L.P.

ARE-702 ELECTRONIC DRIVE, L.P.
By:AREE-Holdings, L.P., their general partner
By:ARE-GP Holdings QRS Corp., its general partner

By:_______________________
Its:

ARE-10933 NORTH TORREY PINES, LLC

ARE-11099 NORTH TORREY PINES, LLC
By:Alexandria Real Estate Equities, Inc., their sole member

By:_________________________

Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.

135 N. Los Robles Avenue, Suite 250

Pasadena, California 91101

Attn:  Joel S. Marcus, Chief Executive Officer

Telecopier:  (626) 578-0770

Telephone:  (626) 578-0777

FLEET NATIONAL BANK, individually and as 

Managing Agent

 

By:______________________________________

Its:

Address:

FLEET NATIONAL BANK

100 Federal Street

Boston, Massachusetts 02110

Attn:  Real Estate Division

with a copy to:

FLEET NATIONAL BANK

115 Perimeter Center Place, N.E., Suite 500

Atlanta, Georgia 30346

Attn: Dan Stegemoeller

Telecopier:(770) 390-8434

Telephone:(770) 390-6547

EXHIBIT B

[Intentionally Omitted].

 

 

EXHIBIT C

[Intentionally Omitted].

 

EXHIBIT D

[Intentionally Omitted].

 

 

EXHIBIT E

FORM OF

COMPLIANCE CERTIFICATE

Fleet National Bank,

for itself and as Managing Agent

115 Perimeter Center Place, N.E.

Suite 500

Atlanta, Georgia 30346

Attn:  Dan Stegemoeller

[INSERT NAMES AND ADDRESSES

OF OTHER BANKS]

Ladies and Gentlemen:

Reference is made to the Term Loan Agreement dated as of September __, 2001, as from time to time in effect (the "Loan Agreement") by and among Alexandria Real Estate Equities, Inc., Alexandria Real Estate Equities, L.P., ARE-QRS Corp., ARE Acquisitions, LLC, the other borrowers whose names are set forth on the signature pages of the Loan Agreement and the other Persons which may become borrowers under the Loan Agreement (collectively, the "Borrowers", all on a joint and several basis), Fleet National Bank, for itself and as Managing Agent, and the other Banks from time to time party thereto.  Terms defined in the Loan Agreement and not otherwise defined herein are used herein as defined in the Loan Agreement.

Pursuant to the Loan Agreement, the Borrowers are furnishing to you herewith (or have most recently furnished to you) the financial statements of the Borrowers and their respective Subsidiaries for the fiscal period ended _______________ (the "Balance Sheet Date").  Such financial statements have been prepared in accordance with Generally Accepted Accounting Principles and present fairly the financial position of Borrowers and the Subsidiaries covered thereby at the date thereof and the results of their operations for the periods covered thereby, subject in the case of interim statements only to normal year-end audit adjustments.

This certificate is submitted in compliance with requirements of Section 7.2 and Section 8.1(h) of the Loan Agreement.  If this certificate is provided under a provision other than Section 7.2, the calculations provided below are made using the financial statements of the Borrowers and their respective Subsidiaries as of the most recent Fiscal Quarter end adjusted in the best good-faith estimate of the Borrowers to give effect to the making of a Loan, extension of the Maturity Date, acquisition or disposition of property or other event that occasions the preparation of this certificate; and the nature of such event and the Borrowers' estimate of its effects are set forth in reasonable detail in an attachment hereto.  The undersigned officers are the chief financial or chief accounting officers of the Borrowers

The undersigned officers have caused the provisions of the Loan Agreement to be reviewed and have no knowledge of any Default or Event of Default. (Note: If the signers do have knowledge of any Default or Event of Default, the form of certificate should be revised to specify the Default or Event of Default, the nature thereof and the actions taken, being taken or proposed to be taken by the Borrowers with respect thereto.)

The Borrowers are providing the information set forth in Schedule I attached hereto to demonstrate compliance as of the date hereof with the covenants described therein.

Pursuant to Section 5.17(b)(i) and (ii) of the Loan Agreement, the Borrowers are hereby delivering to the Managing Agent and the Banks a list of the Revenue-Producing Properties in the Unencumbered Asset Pool and a statement of the Asset Values of such Revenue-Producing Properties as shown on Schedule II attached hereto.  The undersigned hereby certifies that (i) the Revenue-Producing Properties in the Unencumbered Asset Pool are in compliance with Section 5.17(a) of the Loan Agreement; (ii) the statement of Asset Values is true and correct; and (iii) the Revenue-Producing Properties in the Unencumbered Asset Pool comply with the terms of Sections 4.17 and 4.19 of the Loan Agreement.

Pursuant to Section 5.17(b)(iii) of the Loan Agreement, the Borrowers are hereby delivering to the Managing Agent operating statements setting forth the NOI and Net Capital Expenditures for each of the Revenue-Producing Properties in the Unencumbered Asset Pool for the previous four (4) fiscal quarters (or such shorter period that such statements are available for).  The undersigned hereby certifies that such operating statements are true and correct.

Pursuant to Section 7.1(n) of the Loan Agreement, the Borrowers are hereby delivering to the Managing Agent and the Banks information regarding new Subsidiaries and/or Controlled Entities of the Borrowers as set forth on Schedule III attached hereto.

Pursuant to Section 7.1(o) of the Loan Agreement, the Borrowers are hereby delivering to the Managing Agent and the Banks the information required thereby as set forth on Schedule IV attached hereto.

The undersigned officers have caused the provisions of Section 5.10 of the Loan Agreement regarding Hazardous Materials Laws to be reviewed and have no knowledge of any events described therein.  (Note: If the signers do have knowledge of any such events, the form of certificate should be revised to specify such event and any pertinent written material should be attached, all as required by Section 5.10).

IN WITNESS WHEREOF, we have hereunto set our hands this ___ day of ________________, 200__.
ALEXANDRIA REAL ESTATE EQUITIES, INC.

By:

Its:

ALEXANDRIA REAL ESTATE EQUITIES, L.P.

By: ARE-QRS Corp., its general partner

By:___________________________

Its:

ARE-QRS CORP.

By:

Its:

ARE ACQUISITIONS, LLC

ARE-940 CLOPPER ROAD, LLC

ARE-1201 HARBOR BAY, LLC

ARE-1401 RESEARCH BOULEVARD, LLC

ARE-1500 EAST GUDE, LLC
ARE-JOHN HOPKINS COURT, LLC

By:ARE-QRS Corp., their managing member
By:___________________________

Its:

ARE-4757 NEXUS CENTRE, LLC

ARE-215 COLLEGE ROAD, LLC

ARE-819/863 MITTEN ROAD, LLC

ARE-150/154 TECHNOLOGY PARKWAY, LLC
ARE-8000/9000/10000 VIRGINIA MANOR, LLC

ARE-19 FIRSTFIELD ROAD, LLC

ARE-10150 OLD COLUMBIA, LLC

ARE-170 WILLIAMS DRIVE, LLC

ARE-3005 FIRST AVENUE, LLC

ARE-15020 SHADY GROVE, LLC
ARE-5 TRIANGLE DRIVE, LLC

ARE-50 WEST WATKINS MILL, LLC

ARE-100 PHILLIPS PARKWAY, LLC

ARE-279 PRINCETON ROAD, LLC

ARE-2001 ALICEANNA STREET, LLC

ARE-3770 TANSY STREET, LLC

ARE-10505 ROSELLE STREET, LLC

ARE-9363/9373/9393 TOWN CENTRE, LLC
ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

ARE-108 ALEXANDER ROAD, LLC

ARE-480 ARSENAL STREET, LLC

ARE-500 ARSENAL STREET, LLC

ARE-930 CLOPPER ROAD, LLC

ARE-2140 DURANT AVENUE, LLC

ARE-129/153/161 HILL STREET, LLC

ARE-7030 KIT CREEK, LLC

ARE-6146 NANCY RIDGE, LLC

ARE-29 HARTWELL AVENUE, LLC

By:Alexandria Real Estate Equities, L.P., their sole member

By:ARE-QRS Corp., its general partner

By:____________________________
Its:

ARE-79/96 CHARLESTOWN NAVY YARD, LLC

ARE-280 POND STREET, LLC
ARE-60 WESTVIEW, LLC

ARE-381 PLANTATION STREET, LLC
By:AREE-Holdings, L.P., their managing member
By:ARE-GP Holdings QRS Corp., its general partner

By:_________________________
Its:

 

ARE-5100/5110 CAMPUS DRIVE, L.P.

ARE-702 ELECTRONIC DRIVE, L.P.
By:AREE-Holdings, L.P., their general partner
By:ARE-GP Holdings QRS Corp., its general partner

By:_______________________
Its:

 

ARE-10933 NORTH TORREY PINES, LLC

ARE-11099 NORTH TORREY PINES, LLC
By:Alexandria Real Estate Equities, Inc., their sole member

By:_________________________

Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.

135 N. Los Robles Avenue, Suite 250

Pasadena, California 91101

Attn:  Joel S. Marcus, Chief Executive Officer

Telecopier:(626) 578-0770

Telephone:(626) 578-0777

SCHEDULE I

(TO EXHIBIT E)

COVENANT COMPLIANCE CALCULATIONS

 

SCHEDULE II

(TO EXHIBIT E)

INFORMATION REGARDING REVENUE-PRODUCING PROPERTIES

REQUIRED BY SECTION 5.17(B) OF LOAN AGREEMENT

 

SCHEDULE III

(TO EXHIBIT E)

INFORMATION REGARDING NEW SUBSIDIARIES AND/OR CONTROLLED

ENTITIES REQUIRED BY SECTION 7.1(N) OF LOAN AGREEMENT

 

SCHEDULE IV

(TO EXHIBIT E)

INFORMATION REQUIRED BY SECTION 7.1(O) OF LOAN AGREEMENT

 

EXHIBIT F

FORM OF JOINDER AGREEMENT

THIS JOINDER AGREEMENT ("Joinder Agreement") is executed as of _______________, 200__, by _______________, a __________ corporation ("Joining Party"), and delivered to Fleet National Bank, as Managing Agent, pursuant to Section 5.13 of the Term Loan Agreement dated as of September __, 2001, as from time to time in effect (the "Loan Agreement"), by and among Alexandria Real Estate Equities, Inc., Alexandria Real Estate Equities, L.P., ARE-QRS Corp., ARE Acquisitions, LLC, the other borrowers whose names are set forth on the signature pages of the Loan Agreement, and the other Persons which may become borrowers under the Loan Agreement (collectively, the "Borrowers", all on a joint and several basis), Fleet National Bank, for itself and as Managing Agent, and the other Banks from time to time party thereto.  Terms used but not defined in this Joinder Agreement shall have the meanings defined for those terms in the Loan Agreement.

RECITALS

A.Joining Party is required, pursuant to Section 5.13 of the Loan Agreement, to become an additional Borrower under the Loan Agreement and a party to all the other Loan Documents to which the existing Borrowers are a party.

B.Joining Party expects to realize direct and indirect benefits as a result of the availability to Borrowers of the credit facilities under the Loan Agreement.

NOW, THEREFORE, Joining Party agrees as follows:

AGREEMENT

	Joinder.  By this Joinder Agreement, Joining Party hereby becomes a "Borrower" under the Loan Agreement with respect to all the Obligations of a Borrower now or hereafter incurred under the Loan Agreement and the other Loan Documents.  Joining Party agrees that Joining Party is and shall be bound by, and hereby assumes, all representations, warranties, covenants, terms, conditions, duties and waivers applicable to a Borrower under the Loan Agreement and the other Loan Documents.

	Representations and Warranties of Joining Party.  Joining Party represents and warrants to Managing Agent that, as of the Effective Date, except as disclosed in writing by Joining Party to Managing Agent on or prior to the date hereof (which disclosures shall be deemed to amend the Schedules and other disclosures delivered as contemplated in Article 4 of the Loan Agreement), the representations and warranties contained in Article 4 of the Loan Agreement (other than representations and warranties which expressly speak as of a particular date or are no longer true and correct as a result of a change which is permitted by the Loan Agreement) are true and correct in all material respects as applied to Joining Party as a Borrower on and as of the Effective Date as though made on that date.  All covenants and agreements in the Loan Documents of the Borrowers and their Subsidiaries are true and correct with respect to Joining Party and no Default or Event of Default shall exist or might exist upon the Effective Date in the event that Joining Party becomes a Borrower.

	Promissory Notes.  Joining Party hereby agrees that, as of the Effective Date, each Note heretofore delivered to the Banks shall be a joint and several obligation of Joining Party to the same extent as if executed and delivered by Joining Party, and upon request by any Bank, will promptly endorse such Bank's Notes to confirm such obligation.

	Further Assurances.  Joining Party agrees to execute and deliver such other instruments and documents and take such other action, as the Managing Agent may reasonably request, in connection with the transactions contemplated by this Joinder Agreement.

	GOVERNING LAW.  THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS EXECUTED AND PERFORMED IN THE STATE OF CALIFORNIA.
	The effective date (the "Effective Date") of this Joinder Agreement is __________, 200__.

"Joining Party"

______________________________,

a ______________ corporation

By:______________________________

Its:______________________________

[Printed Name and Title]

[CORPORATE SEAL]

ACKNOWLEDGED:

FLEET NATIONAL BANK, as Managing Agent

By:______________________________

Its:______________________________

[Printed Name and Title]

EXHIBIT G

NOTE

$______________________, 200__

Los Angeles, California

FOR VALUE RECEIVED, the undersigned jointly and severally promise to pay to the order of ____________________________________________ (the "Bank"), the principal amount of ____________________________ DOLLARS ($___________) or such amounts as may be advanced by the Bank under the Loan Agreement (as hereinafter defined), payable as hereinafter set forth.  The undersigned jointly and severally promise to pay interest on the principal amount hereof remaining unpaid from time to time from the date hereon until the date of payment in full, payable as hereinafter set forth.

Reference is made to the Term Loan Agreement dated as of September __, 2001 (the "Loan Agreement"), by and among Alexandria Real Estate Equities, Inc., a Maryland corporation ("Parent"), Alexandria Real Estate Equities, L.P., a Delaware limited partnership ("Operating Partnership"), ARE-QRS Corp., a Maryland corporation ("QRS"), ARE Acquisitions, LLC, a Delaware limited liability company ("ARE"), the other borrowers whose names are set forth on the signature pages of the Loan Agreement, each other Wholly-Owned Subsidiary of Parent which may hereafter become a party to the Loan Agreement as a borrower (collectively, with Parent, Operating Partnership, QRS and ARE, the "Borrowers", all on a joint and several basis), each bank whose name is set forth on the signature pages of the Loan Agreement and each lender which may have become a party to the Loan Agreement (collectively, the "Banks" and individually, a "Bank"), and Fleet National Bank, as Managing Agent.  Terms defined in the Loan Agreement and not otherwise defined herein are used herein with the meanings given those terms in the Loan Agreement.  This is one of the Notes referred to in the Loan Agreement, and any holder hereof is entitled to all of the rights, remedies, benefits and privileges provided for in the Loan Agreement as originally executed or as it may from time to time be supplemented, modified or amended.  The Loan Agreement, among other things, contains provisions for acceleration of the maturity hereof upon the happening of certain stated events upon the terms and conditions therein specified.

The principal indebtedness evidenced by this Note shall be payable as provided in the Loan Agreement and in any event on the Maturity Date.

Interest shall be payable on the outstanding daily unpaid principal amount of each Loan hereunder from the date thereof until payment in full and shall accrue and be payable at the rates and on the dates set forth in the Loan Agreement, both before and after default and before and after maturity and judgment, with interest on overdue principal and interest to bear interest at the rate set forth in Section 3.9 of the Loan Agreement, to the fullest extent permitted by applicable Law.

The amount of each payment hereunder shall be made to the Managing Agent at the Managing Agent's Office for the account of the Bank in immediately available funds not later than 1:00 p.m. (Boston, Massachusetts time) on the day of payment (which must be a Banking Day).  All payments received after 1:00 p.m. (Boston, Massachusetts time) on any particular Banking Day shall be deemed received on the next succeeding Banking Day.  All payments shall be made in lawful money of the United States of America.

The Bank shall use its best efforts to keep a record of Loans made by it and payments of principal received by it with respect to this Note, and such record shall be presumptive evidence of the amounts owing under this Note.  Notwithstanding the foregoing, the failure by the Bank to keep such a record shall not affect the undersigned's obligation to pay the indebtedness evidenced hereby.

The undersigned hereby promise to pay all costs and expenses of any rightful holder hereof incurred in collecting the undersigneds' obligations hereunder or in enforcing or attempting to enforce any of such holder's rights hereunder, including reasonable attorneys' fees and disbursements (including reasonably allocated costs of legal counsel employed by the Managing Agent or the holder), whether or not an action is filed in connection therewith.

The undersigned hereby waive presentment, demand for payment, dishonor, notice of dishonor, protest, notice of protest and any other notice or formality, to the fullest extent permitted by applicable Laws.

The undersigned agree that their liability hereunder is joint and several, absolute and unconditional without regard to the liability of any other party.  All provisions of this Note shall apply to each of the undersigned.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THE STATE OF CALIFORNIA.

 

ALEXANDRIA REAL ESTATE EQUITIES, INC.

By:___________________________

Its:

ALEXANDRIA REAL ESTATE EQUITIES, L.P.

By: ARE-QRS Corp., its general partner

By:___________________________

Its:

ARE-QRS CORP.

By:_________________________________

Its:

ARE ACQUISITIONS, LLC

ARE-940 CLOPPER ROAD, LLC

ARE-1201 HARBOR BAY, LLC

ARE-1401 RESEARCH BOULEVARD, LLC

ARE-1500 EAST GUDE, LLC

ARE-JOHN HOPKINS COURT, LLC

By:ARE-QRS Corp., their managing member

By:___________________________

Its:

ARE-4757 NEXUS CENTRE, LLC

ARE-215 COLLEGE ROAD, LLC

ARE-819/863 MITTEN ROAD, LLC

ARE-150/154 TECHNOLOGY PARKWAY, LLC

ARE-8000/9000/10000 VIRGINIA MANOR, LLC

ARE-19 FIRSTFIELD ROAD, LLC

ARE-10150 OLD COLUMBIA, LLC

ARE-170 WILLIAMS DRIVE, LLC

ARE-3005 FIRST AVENUE, LLC

ARE-15020 SHADY GROVE, LLC

ARE-5 TRIANGLE DRIVE, LLC

ARE-50 WEST WATKINS MILL, LLC

ARE-100 PHILLIPS PARKWAY, LLC

ARE-279 PRINCETON ROAD, LLC

ARE-2001 ALICEANNA STREET, LLC

ARE-3770 TANSY STREET, LLC

ARE-10505 ROSELLE STREET, LLC

ARE-9363/9373/9393 TOWN CENTRE, LLC

ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

ARE-108 ALEXANDER ROAD, LLC

ARE-480 ARSENAL STREET, LLC

ARE-500 ARSENAL STREET, LLC

ARE-930 CLOPPER ROAD, LLC

ARE-2140 DURANT AVENUE, LLC

ARE-129/153/161 HILL STREET, LLC

ARE-7030 KIT CREEK, LLC

ARE-6146 NANCY RIDGE, LLC

ARE-29 HARTWELL AVENUE, LLC

By:Alexandria Real Estate Equities, L.P., their sole member

By:ARE-QRS Corp., its general partner

By:____________________________

Its:

ARE-79/96 CHARLESTOWN NAVY YARD, LLC

ARE-280 POND STREET, LLC

ARE-60 WESTVIEW, LLC

ARE-381 PLANTATION STREET, LLC

By:AREE-Holdings, L.P., their managing member

By:ARE-GP Holdings QRS Corp., its general partner

By:_________________________

Its:

 

ARE-5100/5110 CAMPUS DRIVE, L.P.

ARE-702 ELECTRONIC DRIVE, L.P.

By:AREE-Holdings, L.P., their general partner

By:ARE-GP Holdings QRS Corp., its general partner

By:_______________________

Its:

ARE-10933 NORTH TORREY PINES, LLC

ARE-11099 NORTH TORREY PINES, LLC

By:Alexandria Real Estate Equities, Inc., their sole member

By:_________________________

Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.

135 N. Los Robles Avenue, Suite 250

Pasadena, California 91101

Attn:  Joel S. Marcus, Chief Executive Officer

Telecopier:(626) 578-0770

Telephone:(626) 578-0777

EXHIBIT J

PRICING CERTIFICATE

ALEXANDRIA REAL ESTATE EQUITIES, INC.

ALEXANDRIA REAL ESTATE EQUITIES, L.P.

ARE-QRS CORP.

ARE ACQUISITIONS, LLC

AND OTHER BORROWERS

TO:FLEET NATIONAL BANK, AS MANAGING AGENT

Reference is made to the Term Loan Agreement dated as of September __, 2001 (the "Loan Agreement"), by and among Alexandria Real Estate Equities, Inc., a Maryland corporation ("Parent"), Alexandria Real Estate Equities, L.P., a Delaware limited partnership ("Operating Partnership"), ARE-QRS Corp., a Maryland corporation ("QRS"), ARE Acquisitions, LLC, a Delaware limited liability company ("ARE"), the other borrowers whose names are set forth on the signature pages of the Loan Agreement, each other Wholly-Owned Subsidiary of Parent which may hereafter become a party to the Loan Agreement as a borrower (collectively, with Parent, Operating Partnership, QRS and ARE, the "Borrowers", all on a joint and several basis), each bank whose name is set forth on the signature pages of the Loan Agreement and each lender which may have become a party to the Loan Agreement (collectively, the "Banks" and individually, a "Bank"), and Fleet National Bank, as Managing Agent.

I, , hereby certify that I am the of Parent, the _______________ of Operating Partnership, the of QRS, and the of ARE, and the ________ of the other Borrowers and that:

I.  Applicable Pricing Level.  As of the Pricing Period commencing on ,

the Applicable Pricing Level was level .

The Applicable Pricing Level set forth above was determined on the basis of the following:

Parent's Credit Rating.  The Credit Rating of Parent was:

Leverage Ratio.  For any date during a Pricing Period on which Parent does not hold a credit rating of BBB - (or its equivalent) or better (subject to the terms of the Loan Agreement), the pricing level is determined using the Leverage Ratio as of the last day of the Fiscal Quarter most recently ended prior to the commencement of that Pricing Period.  As of the last day of the Fiscal Quarter most recently ended prior to the Pricing Period referred to above (the "Determination Date"), the ratio of Total Liabilities as of that date to Adjusted Tangible Assets as of that date was :1.00.

The schedule attached hereto is provided to demonstrate the calculation of the Leverage Ratio as of the last day of the Fiscal Quarter most recently ended.

II.I further certify that the calculations made and the information contained herein are derived from the books and records of Borrowers and their Subsidiaries, as applicable, and that each and every matter correctly reflects those books and records.

IN WITNESS WHEREOF, I have signed this Certificate on this ________ day of _____________, 200__.

 

 

EXHIBIT K

FORM OF REQUEST FOR LOAN

Fleet National Bank, as Managing Agent

115 Perimeter Center Place, N.E.

Suite 500

Atlanta, Georgia 30346

Attn:  Dan Stegemoeller

Ladies and Gentlemen:

Pursuant to the provisions of Section 2.1 of the Term Loan Agreement dated as of October __, 2001, as from time to time in effect (the "Loan Agreement"), among Alexandria Real Estate Equities, Inc., Alexandria Real Estate Equities, L.P., ARE-QRS Corp., ARE Acquisitions, LLC, the other borrowers whose names are set forth on the signature pages of the Loan Agreement and the other Persons which may hereafter become borrowers under the Loan Agreement (collectively, the "Borrowers", all on a joint and several basis), Fleet National Bank, for itself and as Managing Agent, and the other Banks from time to time party thereto, the Borrowers hereby request and certify as follows:

	Loan.  The Borrowers hereby request a Loan under Section 2.1 of the Loan Agreement:

Principal Amount: $

LIBOR Rate or Alternate Base Rate:

Drawdown Date:  _______________, 200__

Interest Period:

by credit to the general account of the Borrowers with the Managing Agent at the Managing Agent's Office.

	Use of Proceeds.  Such Loan shall be used for the following purposes permitted by Section 5.9 of the Loan Agreement:

[Describe]

	No Default.  The undersigned chief financial or chief accounting officer of each Borrower certifies that Borrowers are and will be in compliance with all covenants under the Loan Documents after giving effect to the making of the Loan requested hereby.

	Representations True. In connection with the request, the Borrowers certify:

	As to any Loan, now and as of the date of the requested Loan, except (i) for representations and warranties which expressly speak as of a particular date or which are no longer true and correct as a result of a change permitted by the Agreement or (ii) as disclosed by Borrowers and approved in writing by the Requisite Banks, each representation and warranty made by Borrowers in Article 4 of the Agreement (other than Sections 4.4, 4.6 (first sentence), 4.10 and 4.18 to the extent such representations relate expressly to an earlier date) will be true and correct in all material respects, both immediately before and after giving effect to such Loan, as though such representations and warranties were made on and as of that date; and
	As to any Loan, other than matters described in Schedule 4.10 to the Loan Agreement or required as of the Closing Date to be therein described, there is no action, suit, proceeding or investigation pending or threatened against or affecting Parent or any of its Subsidiaries or any Property of any of them before any Governmental Agency that constitutes a Material Adverse Effect.

	Borrowing Base.  Attached hereto is a current calculation of the Borrowing Base adjusted in the best good faith estimate of the Borrower to the date hereof.

	Other Conditions.  All other conditions to the making of the Loan requested hereby set forth in Article 8 of the Loan Agreement have been satisfied.

	Date Loan is Made.  Except to the extent, if any, specified by notice actually received by the Managing Agent prior to the date the Loan is made, the foregoing representations and warranties shall be deemed to have been made by the Borrowers on and as of such date.

	Definitions.  Terms defined in the Loan Agreement are used herein with the meanings so defined.

IN WITNESS WHEREOF, we have hereunto set our hands this _____ day of _______________, 200__.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

By:___________________________

Its:

ALEXANDRIA REAL ESTATE EQUITIES, L.P.

By: ARE-QRS Corp., its general partner

By:___________________________

Its:

ARE-QRS CORP.

By:_________________________________

Its:

ARE ACQUISITIONS, LLC

ARE-940 CLOPPER ROAD, LLC

ARE-1201 HARBOR BAY, LLC

ARE-1401 RESEARCH BOULEVARD, LLC

ARE-1500 EAST GUDE, LLC

ARE-JOHN HOPKINS COURT, LLC

By:ARE-QRS Corp., their managing member

By:___________________________

Its:

ARE-4757 NEXUS CENTRE, LLC

ARE-215 COLLEGE ROAD, LLC

ARE-819/863 MITTEN ROAD, LLC

ARE-150/154 TECHNOLOGY PARKWAY, LLC

ARE-8000/9000/10000 VIRGINIA MANOR, LLC

ARE-19 FIRSTFIELD ROAD, LLC

ARE-10150 OLD COLUMBIA, LLC

ARE-170 WILLIAMS DRIVE, LLC

ARE-3005 FIRST AVENUE, LLC

ARE-15020 SHADY GROVE, LLC

ARE-5 TRIANGLE DRIVE, LLC

ARE-50 WEST WATKINS MILL, LLC

ARE-100 PHILLIPS PARKWAY, LLC

ARE-279 PRINCETON ROAD, LLC

ARE-2001 ALICEANNA STREET, LLC

ARE-3770 TANSY STREET, LLC

ARE-10505 ROSELLE STREET, LLC

ARE-9363/9373/9393 TOWN CENTRE, LLC

ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

ARE-108 ALEXANDER ROAD, LLC

ARE-480 ARSENAL STREET, LLC

ARE-500 ARSENAL STREET, LLC

ARE-930 CLOPPER ROAD, LLC

ARE-2140 DURANT AVENUE, LLC

ARE-129/153/161 HILL STREET, LLC

ARE-7030 KIT CREEK, LLC

ARE-6146 NANCY RIDGE, LLC

ARE-29 HARTWELL AVENUE, LLC

By:Alexandria Real Estate Equities, L.P., their sole member

By:ARE-QRS Corp., its general partner

By:____________________________

Its:

ARE-79/96 CHARLESTOWN NAVY YARD, LLC

ARE-280 POND STREET, LLC

ARE-60 WESTVIEW, LLC

ARE-381 PLANTATION STREET, LLC

By:AREE-Holdings, L.P., their managing member

By:ARE-GP Holdings QRS Corp., its general partner

By:_________________________

Its:

ARE-5100/5110 CAMPUS DRIVE, L.P.

ARE-702 ELECTRONIC DRIVE, L.P.

By:AREE-Holdings, L.P., their general partner

By:ARE-GP Holdings QRS Corp., its general partner

By:_______________________

Its:

ARE-10933 NORTH TORREY PINES, LLC

ARE-11099 NORTH TORREY PINES, LLC

By:Alexandria Real Estate Equities, Inc., their sole member

By:_____________________________

Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.

135 N. Los Robles Avenue, Suite 250

Pasadena, California 91101

Attn:  Joel S. Marcus, Chief Executive Officer

Telecopier:(626) 578-0770

Telephone:(626) 578-0777

EXHIBIT L

JOINT BORROWER PROVISIONS

	Attorney-in-Fact.  For the purpose of implementing the joint borrower provisions of the Loan Documents, Borrowers hereby irrevocably appoint each other as their agent and attorney-in-fact for all purposes of the Loan Documents, including the giving and receiving of notices and other communications.

	Accommodation.  It is understood and agreed that the handling of this credit facility on a joint borrowing basis as set forth in this Agreement is solely as an accommodation to the Borrowers and at their request.  Accordingly, the Managing Agent and the Banks are entitled to rely, and shall be exonerated from any liability for relying upon, any Conversion Requests made by a purported officer of any Borrower without the need for any consent or other authorization of any other Borrower and upon any information or certificate provided on behalf of any Borrower by a purported officer of such Borrower.

	Rights of Managing Agent and the Banks.  Each Borrower acknowledges that, except to the extent of the borrowings made by it and the proceeds received by it, the Obligations undertaken by it under the Loan Documents will or may guarantee Obligations of other Borrowers (the "Guaranteed Obligations") and, in full recognition of that fact, each Borrower consents and agrees that the Managing Agent for the benefit of the Banks may, at any time and from time to time, agree with any one Borrower to, without notice or demand to the other Borrowers, and without affecting the enforceability of the Obligations under any Loan Document:

	supplement, modify, amend, extend, renew, or otherwise change the time for payment or the terms of the Guaranteed Obligations or any part thereof, including any increase or decrease of the rate(s) of interest thereon;
	supplement, modify, amend or waive, or enter into or give any agreement, approval or consent with respect to, the Guaranteed Obligations or any part thereof or any of the Loan Documents or any security or guaranties, or any condition, covenant, default, remedy, right, representation or term thereof or thereunder;
	accept new or additional instruments, documents or agreements relative to any of the Loan Documents or the Guaranteed Obligations or any part thereof;
	accept partial payments on the Guaranteed Obligations;
	receive and hold additional security or guaranties for the Guaranteed Obligations or any part thereof;
	release, reconvey, terminate, waive, abandon, subordinate, exchange, substitute, transfer and enforce any security or guaranties for the Guaranteed Obligations, and apply any security and direct the order or manner of sale thereof as the Managing Agent, on behalf of the Banks, in its sole and absolute discretion may determine;
	release any Person or any guarantor from any personal liability with respect to the Guaranteed Obligations or any part thereof;
	settle, release on terms satisfactory to the Managing Agent and the Banks or by operation of applicable laws or otherwise liquidate or enforce any Guaranteed Obligations and any security or guaranty therefor in any manner, consent to the transfer of any security and bid and purchase at any sale; and
	consent to the merger, change or any other restructuring or termination of the existence of any Borrower or any other Person, and correspondingly restructure the Guaranteed Obligations, and any such merger, change, restructuring or termination shall not affect the liability of the other Borrowers or the continuing existence of any Lien securing the Guaranteed Obligations under any Loan Document to which such Borrowers are party or the enforceability hereof or thereof with respect to all or any part of the Guaranteed Obligations.

Upon the occurrence of and during the continuance of any Event of Default, the Managing Agent and the Banks may enforce each Loan Document independently as to each Borrower and independently of any other remedy or security the Managing Agent and the Banks at any time may have or hold in connection with the Guaranteed Obligations, and it shall not be necessary for the Managing Agent and the Banks to marshal assets in favor of any of the Borrowers or any other Person or to proceed upon or against and/or exhaust any other security or remedy before proceeding to enforce such Loan Document.  Each of the Borrowers expressly waives the benefit of all appraisement, valuation, stay, extension, homestead, exemption or redemption laws which such Person may claim or seek to take advantage of in order to prevent or hinder the enforcement of any of the Loan Documents or the exercise by the Banks or the Managing Agent of any of their respective remedies under the Loan Documents, and the Borrowers further expressly waive any right to require the Managing Agent or any Bank to marshal assets in favor of any Borrower or any other Person or to proceed against any other Person or any collateral provided by any other Person, and agrees that the Managing Agent and the Banks may proceed against any Persons and/or collateral in such order as they shall determine in their sole and absolute discretion.  The Managing Agent and the Banks may file a separate action or actions against any Borrower, whether action is brought or prosecuted with respect to any other security or against any other Person, or whether any other Person is joined in any such action or actions.  Each of the Borrowers expressly waives the benefit of any statute(s) of limitations affecting its liability under the Loan Documents or the enforcement of the Guaranteed Obligations or any Liens created or granted by any Loan Document.  The rights of the Managing Agent and the Banks hereunder and under the Loan Documents shall be reinstated and revived, and the enforceability of this Agreement shall continue, with respect to any amount at any time paid on account of the Obligations which thereafter shall be required to be restored or returned by the Managing Agent or any Bank upon the bankruptcy, insolvency or reorganization of any Borrower or any other Person, or otherwise, all as though such amount had not been paid.  The enforceability of the Loan Documents at all times shall remain effective as to each Borrower as to the Guaranteed Obligations of such Borrower even though such Guaranteed Obligations, including any part thereof may be or hereafter may become invalid or otherwise unenforceable as against any other Borrowers or any other Person and whether or not any of the other Borrowers or any other Person shall have any personal liability with respect thereto.  Each of the Borrowers expressly waives in respect of the Guaranteed Obligations any and all defenses now or hereafter arising or asserted by reason of (a) any disability or other defense of any of the other Borrowers or any other Person with respect to the Guaranteed Obligations, (b) the unenforceability or invalidity of any security or guaranty for the Guaranteed Obligations or the lack of perfection or continuing perfection or failure of priority of any security for the Guaranteed Obligations, (c) the cessation for any cause whatsoever of the liability of any other Borrower or any other Person (other than by reason of the full payment and performance of all Obligations), (d) any failure of the Managing Agent or any Bank to marshal assets in favor of any of the other Borrowers or any other Person, (e) except as otherwise required by law or as provided in any Loan Document, any failure of the Managing Agent or any Bank to give notice of sale or other disposition of collateral to any of the other Borrowers or any other Person or any defect in any notice that may be given in connection with any sale or disposition of collateral, (f) except as otherwise required by law or as provided in any Loan Document, any failure of the Managing Agent or any Bank to comply with applicable laws in connection with the sale or other disposition of any collateral or other security for any Obligation, including without limitation, any failure of Managing Agent or any Bank to conduct a commercially reasonable sale or other disposition of any collateral or other security for any Guaranteed Obligation, (g) any incapacity, lack of authority, death or disability of the other Borrowers or any other Person, (h) any failure of the Banks or Managing Agent to give notice of the existence, creation or incurring of any new or additional indebtedness or other obligation or of any action or nonaction on the part of any other Person in connection with the Loan Documents, including the waiver of any conditions to the making of any advance of proceeds of any Loan, (i) any failure on the part of the Banks or Managing Agent to ascertain the extent or nature of any assets of any Person or any insurance or other rights with respect thereto, or the liability of any party liable for the Loan Documents or the obligations evidenced or secured thereby, (j) except as specifically required in the Loan Documents, any notice of intention to accelerate any of the Obligations or any notice of acceleration of the Obligations, (k) any lack of acceptance or notice of acceptance of this Agreement by Banks or Managing Agent, (l) any lack of presentment, demand, protest, or notice of dishonor, demand, protest or nonpayment with respect to any indebtedness or obligations under any of the Loan Documents, (m) except as specifically required in the Loan Documents, any lack of other notices to which the Borrowers, or any of them, might otherwise be entitled, (n) any invalidity or irregularity, in whole or in part, of any one or more of the Loan Documents, (o) the inaccuracy of any representation or other provision contained in any Loan Document, (p) any sale or assignment of the Loan Documents, in whole or in part, (q) any sale or assignment by any of the Borrowers of any assets of such Person, or any portion thereof, whether or not consented to by the Banks or Managing Agent, (r) the dissolution or termination of existence of any Borrower or any other Person, (s) the voluntary or involuntary liquidation, sale or other disposition of all or substantially all of the assets of any Borrower, (t) any failure or delay of Managing Agent or the Banks to commence an action against Borrowers, to assert or enforce any remedies against Borrowers under the Notes or the Loan Documents, or to realize upon any security, (u) the compromise, settlement, release or termination of any or all of the obligations of a Borrower under the Notes or the Loan Documents, (v)  any act or omission of the Managing Agent or any Bank or others that directly or indirectly results in or aids the discharge or release of any other Borrower or any other Person or any other security or guaranty for the Guaranteed Obligations by operation of law or otherwise, (w) any law which provides that the obligation of a surety or guarantor must neither be larger in amount nor in other respects more burdensome than that of the principal or which reduces a surety's or guarantor's obligation in proportion to the principal obligation, (x) any failure of the Managing Agent or any Bank to file or enforce a claim in any bankruptcy or other proceeding with respect to any Person, (y) the election by the Managing Agent or any Bank, in any bankruptcy proceeding of any Person, of the application or non-application of Section 1111(b)(2) of the United States Bankruptcy Code, (z) any extension of credit or the grant of any lien under Section 364 of the United States Bankruptcy Code, (aa) any use of cash collateral under Section 363 of the United States Bankruptcy Code, (bb) any agreement or stipulation with respect to the provision of adequate protection in any bankruptcy proceeding of any Person, (cc) the avoidance of any Lien in favor of the Managing Agent or the Banks for any reason, (dd) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding commenced by or against any Person, including any discharge of, or bar or stay against collecting, all or any of the Guaranteed Obligations (or any interest thereon) in or as a result of any such proceeding, (ee) to the extent permitted, the benefits of any form of one-action rule, or (ff) to the fullest extent permitted by law, any other legal, equitable or surety defenses whatsoever to which a Borrower might otherwise be entitled with respect to the Guaranteed Obligations.

	Financial Information.  Each of the Borrowers represents and warrants to the Managing Agent and the Banks that such Borrower has established adequate means of obtaining from the other Borrowers, on a continuing basis, financial and other information pertaining to the businesses, operations and condition (financial and otherwise) of the other Borrowers and their respective assets, and each of the Borrowers now is and hereafter will be completely familiar with the businesses, operations and condition (financial and otherwise) of the other Borrowers and their respective assets.  Each of the Borrowers hereby expressly waives and relinquishes any duty on the part of the Managing Agent and the Banks to disclose to such Borrower any matter, fact or thing related to the businesses, operations or condition (financial or otherwise) of any other Borrower or such other Borrower's assets, whether now known or hereafter known by the Managing Agent and the Banks during the life of this Agreement, whether such matter, fact or thing materially increases the risks to such Borrower or not.

	Waivers Concerning Liens.  In the event that all or any part of the Guaranteed Obligations at any time are secured by any one or more deeds of trust, security deeds or mortgages creating or granting Liens on any interests in Real Property, each of the Borrowers authorizes the Managing Agent and the Banks, upon the occurrence of and during the continuance of any Event of Default, at their sole option, without notice or demand and without affecting any Obligations, the enforceability of the Guaranteed Obligations under this Agreement, or the validity or enforceability of any Liens of the Managing Agent and the Banks on any collateral securing the Guaranteed Obligations, to foreclose any or all of such deeds of trust, security deeds or mortgages by judicial or nonjudicial sale.  Insofar as the Liens created by the Loan Documents secure the Guaranteed Obligations of other Persons (a) each of the Borrowers expressly waives any defenses to the enforcement of this Agreement or the other Loan Documents or any Liens created or granted hereby or by the other Loan Documents or to the recovery by the Managing Agent and the Banks against any other Borrower or any other Person liable therefor of any deficiency after a judicial or nonjudicial foreclosure or sale, even though such a foreclosure or sale may impair the subrogation rights of such Borrower and may preclude any of them from obtaining reimbursement or contribution from any other Person and (b) each of the Borrowers expressly waives any defenses or benefits that may be derived from California Code of Civil Procedure Sections 580a, 580b, 580d or 726, or comparable provisions of the laws of any other jurisdiction and all other suretyship defenses it otherwise might or would have under California law or other applicable law.

	Contribution.  Notwithstanding anything to the contrary elsewhere contained herein or in any other Loan Document to which any Borrower is a party, each of the Borrowers hereby waives with respect to each other Borrower and its respective successors and assigns (including any surety) and any other party any and all rights at or in equity, to subrogation, to reimbursement, to exoneration, to contribution, to indemnity, to setoff or to any other rights that could accrue to a surety against a principal, to a guarantor against a maker or obligor, to an accommodation party against the party accommodated, or to a holder or transferee against a maker and which each of the Borrowers may have or hereafter acquire against any other Borrower or any other party in connection with or as a result of any Borrower's execution, delivery and/or performance of this Agreement or any other Loan Document to which any such Borrower is a party.  In connection with the foregoing, each of the Borrowers expressly waives any and all rights of subrogation to the Banks or Managing Agent against the other of the Borrowers, and each of the Borrowers hereby waives any rights to enforce any remedy which the Banks or Managing Agent may have against the other of the Borrowers and any rights to participate in any collateral or any other assets of the other Borrowers.  Each of the Borrowers agrees that it shall not have or assert any such rights against any other Borrower or any such Borrower's successors and assigns or any other Person (including any surety, Managing Agent or any Bank), either directly or as an attempted setoff to any action commenced against such Borrower by the other such Borrower (as borrower or in any other capacity) or any other Person.  Each of the Borrowers hereby acknowledges and agrees that this waiver is intended to benefit the Managing Agent and the Banks and shall not limit or otherwise affect any of the Borrowers' liability hereunder, under any other Loan Document to which any Borrower is a party, or the enforceability hereof or thereof.  Without limiting the generality of the foregoing and to the extent otherwise applicable, each of the Borrowers hereby waives discharge by waiving all defenses based on suretyship or impairment of collateral securing the Guaranteed Obligations.

	Reliance by Banks and Managing Agent.  Each of the Borrowers warrants and agrees that each of the waivers and consents set forth herein is made with full knowledge of its significance and consequences, with the understanding that events giving rise to any defense waived may diminish, destroy or otherwise adversely affect rights which each of the Borrowers otherwise may have against the other Borrowers, the Managing Agent, the Banks, or others, or against any collateral securing the Guaranteed Obligations.  If any of the waivers or consents herein are determined to be contrary to any applicable law or public policy, such waivers and consents shall be effective to the maximum extent permitted by law.

	Applicability.  For purposes of this Agreement, the provisions of Paragraphs 5 and 6 above shall apply and be effective only to the extent that any court, tribunal or other governmental agency shall have deemed Borrowers to be sureties of one another rather than co-borrowers.

	Waiver of Automatic or Supplemental Stay.  Each of the Borrowers represents, warrants and covenants to the Banks and Managing Agent that in the event of the filing of any voluntary or involuntary petition in bankruptcy by or against any Borrower at any time following the execution and delivery of this Agreement, none of the other Borrowers shall seek a supplemental stay or any other relief, whether injunctive or otherwise, pursuant to Section 105 of the United States Bankruptcy Code or any other provision of the United States Bankruptcy Code, to stay, interdict, condition, reduce or inhibit the ability of the Banks or Managing Agent to enforce any rights it has by virtue of this Agreement, the Loan Documents, or at law or in equity, or any other rights the Banks or Managing Agent has, whether now or hereafter acquired, against any other Borrower or against any property owned by any other Borrower.

	Subordination.  In addition to and without in any way limiting the foregoing, each of the Borrowers hereby subordinates any and all indebtedness it may now or hereafter owe to such other Borrower to all indebtedness of the Borrowers to the Banks and Managing Agent, and agrees with the Banks and Managing Agent that neither of the Borrowers shall claim any offset or other reduction of such Borrower's obligations hereunder because of any such indebtedness and shall not take any action to obtain any collateral or any other assets of the other Borrower.

EXHIBIT M

[Intentionally Omitted].

 

EXHIBIT N

[Intentionally Omitted].

 

SCHEDULE 1.1

BANKS AND COMMITMENT

	
Name and Address
	
Commitment
	
Pro Rata Share

	 	 	 
	
Fleet National Bank

100 Federal Street

Boston, Massachusetts 02110

Attn:  Real Estate Division
	
$50,000,000.00
	
100%

	 	 	 
	
Eurodollar Lending Office 

same as above
	 	 
	 	 	 
	
	
	

	 	 	 
	 	 	 
	 	

	
____________

	 	
$50,000,000.00
	
100.0%

Percentages may not equal 100% due to rounding.

 

	
	
	
Schedule 1.2

	

	
TEST DEBT SERVICE COVERAGE AMOUNT CALCULATION

	
 EXAMPLE ONLY 
	

	
	
	
	

	
	
 Borrowing Base - Debt Service Coverage Limit: 
	

	
	
	
	

	
	
 Adjusted NOI from Unencumbered Asset Pool for most recent  
	

	
	
	
 four quarters 
	
$64,420,000 

	
	
 Test Debt Service Coverage Amount: 
	

	
	
	
 Total Unsecured Indebtedness 
	
$274,000,000 

	
	
	
 Treasury Base Rate plus 2% 
	
7.42%

	
	
	
 Test Debt Service Coverage Amount * 
	
$24,127,191 

	
	
	
	

	
	
 Coverage of Test Debt Service Coverage Amount 
	
                     2.67 

*Test Debt Service Coverage amount based upon the Treasury rate + 2% on a 25 year amortization schedule

Schedule 4.4 to

Term Loan Agreement

 

SUBSIDIARIES

 

	Entity Name

	
Property Owned

(Acquisition Price)
	
State of Formation
	
Date Formed
	
State(s) Qualified
	
Owners/Interests

	
Alexandria Real Estate Equities, Inc. ("AREE")
	
1102 & 1124 Columbia St., Seattle, WA 

	
MD
	
10/27/94
	
CA

WA
	
publicly traded NYSE

	
Alexandria Real Estate Equities, L.P. ("ARE, LP")
	
None
	
DE
	
12/10/97
	
CA

MA
	
1% GP: ARE-QRS Corp.

1% LP ARE-QRS Corp.

98% LP: AREE

	
Alexandria Equities, LLC
	
None
	
DE
	
2/13/01
	
CA
	
100% AREE

	
Alexandria Management, Inc.
	
None
	
MD
	
9/29/00
	
	
100% AREE

	
ARE Acquisitions, LLC

Formerly "PW Acquisitions I, LLC"
	
1330 Piccard Dr., Rockville, MD 

1550 E. Gude Dr., Rockville, MD 
	
DE
	
12/20/96
	
MD

VA
	
1% managing: ARE-QRS

99% nonmanaging:  AREE 

	
AREE-HOLDINGS, L.P.

("Holdings")
	
None
	
DE
	
12/23/97
	
	
1% GP: ARE-GP

99% LP: ARE, LP

	
AREE-HOLDINGS II, L.P.

("Holdings II)
	
None
	
DE
	
5/8/98
	
	
1% GP: ARE-GP/II

99% LP: ARE, LP

	
ARE-GP HOLDINGS QRS 

CORP.  ("ARE-GP")
	
None
	
DE
	
12/19/97
	
	
100% AREE

	
ARE-GP/II HOLDINGS QRS 

CORP.  ("ARE-GP/II")
	
None
	
DE
	
5/8/98
	
	
100% AREE

	
ARE-GP/III HOLDINGS QRS CORP. ("ARE-GP/III")
	
None
	
DE
	
10/20/98
	
	
100% AREE

	
ARE-GP/IV HOLDINGS QRS CORP. ("ARE-GP/IV")
	
None
	
DE
	
12/28/99
	
MA
	
100% AREE

	
ARE-GP/V HOLDINGS QRS CORP. ("ARE-GP/V")
	
None
	
DE
	
12/28/99
	
	
100% AREE

	
ARE-GP/VI HOLDINGS QRS CORP. ("ARE-GP/VI")
	
None
	
DE
	
6/22/00
	
	
100% AREE

	
ARE-GP 708 Quince Orchard QRS Corp.
	
None
	
MD
	
9/29/00
	
	
100% ARE-QRS Corp.

	
ARE-QRS Corp.

 
	
300 & 401 Professional Dr., Gaithersburg, MD 

1311&1401 Harbor Bay Parkway, Alameda, CA 

condominiums

1413 Research Blvd., Rockville, MD 
	
MD
	
9/9/96
	
CA

MA
	
100% AREE

	
ARE-John Hopkins Court, LLC
	
3530 & 3550 John Hopkins Court, San Diego, CA 
	
DE
	
7/2/97
	
CA
	
1% managing: ARE-QRS

99% nonmanaging: AREE

	
ARE-Lake View Building, LLC
	
Lake View Building

Lake Union Center

Seattle, WA

(Ground Sublessee)
	
DE
	
12/13/00
	
WA
	
100% ARE, LP

	
ARE-Metropolitan Grove I, LLC
	
1201 Clopper Road, Gaithersburg, MD aka ARC-Gaithersburg

	
DE
	
12/19/97
	
MD
	
100% ARE, LP

	
ARE-Nexus Centre II, LLC
	
vacant parcel adjoining 4757 Nexus Centre Dr., San Diego CA
	
DE
	
3/17/98
	
CA
	
100% ARE, LP

	
ARE-One Innovation Drive, LLC
	
One Innovation Drive, Worcester, MA (fka 3 Biotech)

(encumbered by $11,297,144 loan)
	
DE
	
9/3/98
	
MA
	
1% managing: HOLDINGS

99% nonmanaging: ARE, LP

	
ARE-Technology Parkway SSF, LLC
	
335 Oyster Point, S. San Francisco, CA
	
DE
	
12/29/99
	
CA
	
100% ARE, LP

	
ARE-Western Newbrook, LLC 

(formerly known as ARE-3000/3018 Western, LLC)
	
3000 & 3018 Western, Seattle, WA 

14225 Newbrook Dr., Chantilly, VA 

Loan amount $ 36.5M
	
DE
	
name changed 5/11/98
	
WA

VA
	
1% managing: HOLDINGS II

99% nonmanaging: ARE, LP

	
5 Research Place LLC
	
5 Research Place, Rockville, MD
	
MD
	
7/9/01
	
	
100% ARE, LP

	
ARE-5 Triangle Drive, LLC
	
5 Triangle Drive, Research Triangle Park, NC
	
DE
	
7/9/98
	
NC
	
100% ARE, LP

	
ARE-19 Firstfield Road, LLC
	
19 Firstfield Road

Gaithersburg, MD 
	
DE
	
4/20/98
	
MD
	
100% ARE, LP

	
ARE-20/22/1300 Firstfield Quince Orchard, LLC
	
20/22 Firstfield and 1300 Quince Orchard Road, Gaithersburg, MD
	
DE
	
3/27/00
	
MD
	
1% managing:  ARE-GPVI

99% nonmanaging:  ARE, LP

	
ARE-25/35/45 W. Watkins Corp.
	
25,35 & 45 W. Watkins Mill Rd., Gaithersburg, MD 
	
MD
	
9/29/00
	
	
100% ARE-QRS Corp.

	
ARE-25/35/45 W. Watkins Loan Corp.
	
None
	
MD
	
9/29/00
	
	
100% ARE-25/35/45 W. Watkins Corp.

	
ARE-29 Hartwell Avenue, LLC
	
29 Hartwell Avenue, Lexington, .MA
	
DE
	
2/21/01
	
MA
	
100% ARE, LP

	
ARE-50 West Watkins Mill, LLC
	
50 West Watkins Mill Road, Gaithersburg, MD 
	
DE
	
8/27/98
	
MD
	
100% ARE, LP

	
ARE-55 Fillmore Street, LLC
	
55 Fillmore Street, Pasadena, CA

Ground Lease 
	
DE
	
2/11/00
	
CA
	
100% ARE, LP

	
ARE-60 Westview, LLC
	
60 Westview Street, 

Lexington, MA
	
DE
	
8/11/98
	
MA
	
1% managing:  HOLDINGS, LP

99% nonmanaging:  ARE, LP

	
ARE-79/96 Charlestown Navy Yard, LLC
	
Building 79

Building 96

Charlestown Navy Yard, Charlestown, MA

Ground Lease
	
DE
	
12/31/97
	
MA
	
1% managing: HOLDINGS, LP

99% nonmanaging: ARE, LP

	
ARE-100 Phillips Parkway, LLC
	
100 Phillips Parkway, Montvale, NJ
	
DE
	
9/23/98
	
NJ
	
100% ARE, LP

	
ARE-100/800/801 Capitola, LLC
	
100, 800 & 801 Capitola Drive, Durham, NC ($12,640,760.91 assumed loan)
	
DE
	
12/16/97
	
NC
	
100% ARE, LP

	
ARE-108 Alexander Road, LLC 

(formerly known as 104 Alexander Road)
	
108 Alexander Road, Research Triangle Park, NC

(Ground Lease & Build to Suit)
	
DE
	
5/5/99

name changed 11/3/00
	
NC
	
100% ARE, LP

	
ARE-129/153/161 Hill Street, LLC
	
129/153/161 North Hill Street, Pasadena  CA
	
DE
	
11/23/99
	
CA
	
100% ARE, LP

	
ARE-150/154 Technology Parkway, LLC
	
150 & 154 Technology Parkway, Norcross, GA
	
DE
	
4/15/98
	
GA
	
100% ARE, LP

	
ARE-170 Williams Drive, LLC
	
170 Williams Drive

Ramsey, NJ
	
DE
	
5/18/98
	
NJ
	
100% ARE, LP

	
ARE-215 College Road, LLC
	
215 College Road, Paramus, NJ
	
DE
	
12/19/97
	
NJ
	
100% ARE, LP

	
ARE-279 Princeton Road, LLC
	
279 Princeton Road, Princeton, NJ
	
DE
	
8/27/98
	
NJ
	
100% ARE, LP

	
ARE-280 Pond Street, LLC
	
280 Pond Street

Randolph, MA 
	
DE
	
4/13/98
	
MA
	
1% managing: HOLDINGS

99% nonmanaging: ARE, LP

	
ARE-377 Plantation Street, LLC
	
377 Plantation Street, Worcester, MA (fka 4 Biotech)

	
DE
	
9/3/98
	
MA
	
1% managing: ARE-GP/IV

99% nonmanaging:  ARE, LP

	
ARE-381 Plantation Street, LLC

Formerly known as ARE-Five Biotech, LLC
	
381 Plantation Street,

Worcester, MA

Tenancy-in-Common
	
DE
	
name changed

2/3/00
	
MA
	
1% managing: HOLDINGS

99% nonmanaging: ARE, LP

	
ARE-480 Arsenal Street, LLC
	
480 Arsenal St., 

Watertown, MA
	
DE
	
6/5/01
	
MA
	
100% ARE, LP

	
ARE-500 Arsenal Street, LLC
	
500 Arsenal St.,

Watertown, MA

	
DE
	
7/26/00
	
MA
	
100% ARE,LP

	
ARE-620 Memorial Drive, LLC
	
620 Memorial Drive, Cambridge, MA
	
DE
	
10/23/98
	
MA
	
1% managing: ARE-GP/III

99% nonmanaging:  ARE, LP

	
ARE-700/730 South Raymond, LLC

(formerly 686/700 South Raymond)
	
700-730 South Raymond Ave., Pasadena, CA
	
DE
	
7/26/00

name changed 11/15/00
	
CA
	
100% ARE, LP

	
ARE-702 Electronic Drive, L.P.
	
702 Electronic Drive

Horsham, PA
	
DE
	
3/24/98
	
PA
	
1% general partner: HOLDINGS

99% limited partner: ARE, LP

	
ARE-708 Quince Orchard, LLC
	
708 Quince Orchard Road, Gaithersburg, MD 
	
DE
	
8/14/97
	
MD
	
1% managing: ARE-GP 708 Quince Orchard QRS Corp.

99% nonmanaging:  AREE 

	
ARE-708 Quince Orchard Loan, LLC
	
None
	
DE
	
9/28/00
	
MD
	
100% ARE-708 Quince Orchard, LLC

	
ARE-770/784/790 Memorial Drive, LLC
	
770/784/790 Memorial Drive, Cambridge, MA
	
DE
	
3/20/01
	
MA
	
100% ARE, LP

	
ARE-819/863 Mitten Road, LLC
	
819, 831, 839, 849, 863 Mitten Road and 866 Malcolm, Burlingame, CA
	
DE
	
12/19/97
	
CA
	
100% ARE, LP

	
ARE-930 Clopper Road, LLC
	
930 Clopper Road

Gaithersburg, MD
	
DE
	
12/21/00
	
MD
	
100% ARE, LP

	
ARE-940 Clopper Road, LLC
	
940 Clopper Road, Gaithersburg, MD 
	
DE
	
8/20/97
	
MD
	
1% managing: ARE-QRS

99% nonmanaging:  AREE 

	
ARE-1201 Harbor Bay, LLC
	
1201 Harbor Bay Parkway, Alameda, CA 
	
DE
	
11/17/97
	
CA
	
1% managing: ARE-QRS

99% nonmanaging: AREE 

	
ARE-1201 Clopper Loan, LLC
	
1201 Clopper Road, Gaithersburg, MD
	
DE
	
9/17/99
	
MD
	
100% ARE-METROPOLITAN GROVE I, LLC

	
ARE-1401 Research Boulevard, LLC
	
1401 Research Blvd., Gaithersburg, MD 
	
DE
	
8/28/97
	
MD
	
1% managing: ARE-QRS

99% nonmanaging: AREE 

	
ARE-1431 Harbor Bay, LLC
	
1431 Harbor Bay Parkway, Alameda, CA (encumbered by $8,500,000 loan)
	
DE
	
5/20/97
	
CA
	
1% managing: ARE-QRS

99% nonmanaging: AREE

	
ARE-1500 East Gude, LLC
	
1500 East Gude Dr., 

3 Taft Ct., & 3 1/2 Taft Ct., Rockville, MD 
	
DE
	
11/5/97
	
MD
	
1% managing: ARE-QRS

99% nonmanaging: AREE 

	
ARE-2001 Aliceanna Street, LLC
	
1935/2001/2023-2039 Aliceanna Street, Baltimore, MD
	
DE
	
6/30/98
	
MD
	
100% ARE, LP

	
ARE-2140 Durant Avenue, LLC
	
2140 Durant Avenue, Berkeley, CA
	
DE
	
6/9/00
	
CA
	
100% ARE, LP

	
ARE-2425/2400/2450 Garcia Bayshore, LLC
	
2425 Garcia Avenue & 2400/2450 Bayshore Parkway, Mountain View, CA
	
DE
	
7/27/99
	
CA
	
100% ARE, LP

	
ARE-2625/2627/2631 Hanover, LLC
	
2625/2627/2631 Hanover Street, Palo Alto, CA

Ground Lease
	
DE
	
3/23/99
	
CA
	
100% ARE, LP

	
ARE-3005 First Avenue, LLC
	
3005 1st Avenue, Seattle, WA
	
DE
	
5/8/98
	
WA
	
100% ARE, LP

	
ARE-3535/3565 General Atomics Court, LLC
	
3535 & 3565 General Atomics Ct., San Diego, CA 
	
DE
	
12/19/97
	
CA
	
100% AREE

	
ARE-3770 Tansy Street, LLC
	
3770 Tansy Street, San Diego, CA
	
DE
	
8/11/98
	
CA
	
100% ARE, LP

	
ARE-4757 Nexus Centre, LLC
	
4757 Nexus Centre Dr., San Diego CA
	
DE
	
3/13/98
	
CA
	
100% ARE, LP

	
ARE-5100/5110 Campus Drive, L.P.
	
5100 & 5110 Campus Dr., Philadelphia, PA
	
DE
	
3/24/98
	
PA
	
1% general partner: HOLDINGS

99% limited partner: ARE, LP

	
ARE-6146 Nancy Ridge, LLC
	
6146 Nancy Ridge Drive, San Diego CA
	
DE
	
11/13/00
	
CA
	
100% ARE, LP

	
ARE-6166 Nancy Ridge, LLC
	
6166 Nancy Ridge Dr., San Diego, CA 
	
DE
	
3/20/98
	
CA
	
1% managing: ARE-GP/V

99% nonmanaging:  ARE, LP

	
ARE-7030 Kit Creek, LLC

	
7030 Kit Creek Rd.,

Research Triangle Park, NC
	
DE
	
7/18/00
	
NC
	
100% ARE, LP

	
ARE-8000/9000/10000 Virginia Manor, LLC
	
8000, 9000, 10000 Virginia Manor Road, Beltsville, MD

ground lease
	
DE
	
12/31/97
	
MD
	
100% ARE, LP

	
ARE-9363/9373/9393 Towne Centre, LLC
	
9363/9373/9393 Towne Centre Drive, San Diego, CA  
	
DE
	
8/18/99
	
CA
	
100% ARE, LP

	
ARE-9880 Campus Point, LLC
	
9880 Campus Point Drive, San Diego, CA 
	
DE
	
7/13/01
	
CA
	
100% ARE, LP

	
ARE-10150 Old Columbia, LLC
	
10150 Old Columbia Road, Columbia, Maryland 
	
DE
	
12/19/97
	
MD
	
100% ARE, LP

	
ARE-10505 Roselle Street, LLC
	
10505 Roselle Street, San Diego, CA
	
DE
	
7/27/98
	
CA
	
100% ARE, LP

	
ARE-10933 North Torrey Pines, LLC
	
10933 N. Torrey Pines Rd., San Diego, CA 

3010 Science Park Road, San Diego, CA
	
DE
	
12/19/97
	
CA
	
100% AREE

	
ARE-11025/11075 Roselle Street, LLC
	

11025 Roselle Street

11035, 11045, 11055, 11065, 11075 Roselle Street

San Diego, CA
	
DE
	
7/18/00
	
CA
	
100% ARE, LP

	
ARE-11099 North Torrey Pines, LLC
	
11099 N. Torrey Pines Rd., San Diego, CA 
	
DE
	
12/19/97
	
CA
	
100% AREE

	
ARE-15020 Shady Grove, LLC
	
15020 Shady Grove, Rockville, MD 
	
DE
	
6/5/98
	
MD
	
100% ARE, LP

	
Laboratory Facility Services, Inc.
	
	
MD
	
4/30/01
	
	
100% ARE-QRS Corp.

Schedule 4.7 to

Term Loan Agreement

EXISTING LIENS, NEGATIVE PLEDGES AND RIGHTS OF OTHERS

As of the Closing Date, the Borrowers will have outstanding mortgage indebtedness as follows:

	
Name of Property
	
Maturity Date of Loan

	
One Innovation Drive

Worcester, MA
	
January 2006

	
100/800/801 Capitola Drive

Durham, NC
	
December 2006

	
20/22 Firstfield Road, Gaithersburg, MD &

1300 Quince Orchard Road, Gaithersburg, MD
	
August 2007

	
620 Memorial Drive

Cambridge, MA
	
October 2007

	
14225 Newbrook Drive, Chantilly VA &

3000/3018 Western Newbrook, Seattle WA
	
May 2008

	
377 Plantation Street, Worcester MA &

6166 Nancy Ridge, San Diego CA
	
January 2010

	
25/35/45 W. Watkins Mill Road, Gaithersburg, MD &

708 Quince Orchard Road, Gaithersburg, MD
	
November 2010

	
11025-11075 Roselle Street

San Diego, CA
	
July 2011

	
9880 Campus Point Drive

San Diego, CA
	
August 2011

	
1431 Harbor Bay Parkway

Alameda, CA
	
January 2014

	
3535/3565 General Atomics Court

San Diego, CA
	
December 2014

	
1102/1124 Columbia Street

Seattle, WA
	
June 2016

	
1201 Clopper Road

Gaithersburg, MD
	
January 2002

	
341/343 Oyster Point

San Francisco, CA
	
June 2003

Schedule 4.7 to

Term Loan Agreement

 

EXISTING LIENS, NEGATIVE PLEDGES AND RIGHTS OF OTHERS

 

As of the Closing Date, the following properties are on ground leases:

	
Name of Property
	
Term of Lease

	
Buildings 79 and 96 Charlestown Navy Yard

Charlestown, Massachusetts
	
September 2053/May 2055

	
8000/9000/10000 Virginia Manor Road

Beltsville, Maryland
	
July 2047

	
2625/2627/2631 Hanover Street

Palo Alto, California
	
October 2016

	
2425 Garcia Avenue& 2400/2450

Bayshore Parkway

Mountain View, California
	
September 2053

	
108 Alexander Road

Research Triangle Park, North Carolina
	
September 2035

 

Schedule 4.10 to

Term Loan Agreement

MATERIAL LITIGATION

None.

 

Schedule 4.17 to

Term Loan Agreement

HAZARDOUS MATERIALS

None.

 

Schedule 4.18 to

Term Loan Agreement

INITIAL POOL PROPERTIES

The properties at the addresses set forth below are the Qualified Unencumbered Asset Pool Properties comprising the initial Unencumbered Asset Pool:

	
1.
	
10933 North Torrey Pines Road
	
San Diego, California

	
2.
	
3010 Science Park Road
	
San Diego, California

	
3.
	
11099 North Torrey Pines Road
	
San Diego, California

	
4.
	
4757 Nexus Center Drive
	
San Diego, California

	
5.
	
10505 Roselle Street
	
San Diego, California

	
6.
	
3770 Tansy Street
	
San Diego, California

	
7.
	
3530 John Hopkins Court
	
San Diego, California

	
8.
	
3550 John Hopkins Court
	
San Diego, California

	
9.
	
9363 Towne Centre Drive
	
San Diego, California

	
10.
	
9373 Towne Centre Drive
	
San Diego, California

	
11.
	
9393 Towne Centre Drive
	
San Diego, California

	
12.
	
6146 Nancy Ridge Drive
	
San Diego, California

	
13.
	
129/153/161 North Hill Street
	
Pasadena, California

	
14.
	
1311 Harbor Bay Parkway
	
Alameda, California

	
15.
	
1401 Harbor Bay Parkway
	
Alameda, California

	
16.
	
1201 Harbor Bay Parkway
	
Alameda, California

	
17.
	
2140 Durant Avenue
	
Berkeley, California

	
18.
	
819-849 Mitten Road
	
Burlingame, California

	
19.
	
863 Mitten Road/866 Malcolm Road
	
Burlingame, California

	
20.
	
2425 Garcia 2400/2450 Bayshore
	
Mountain View, California

	
21.
	
150/154 Technology Parkway
	
Norcross, Georgia

	
22.
	
2001 Aliceanna Street
	
Baltimore, Maryland

	
23.
	
8000/9000/10000 Virginia Manor Road
	
Beltsville, Maryland

	
24.
	
10150 Old Columbia Road
	
Columbia, Maryland

	
25.
	
300 Professional Drive
	
Gaithersburg, Maryland

	
26.
	
401 Professional Drive
	
Gaithersburg, Maryland

	
27.
	
940 Clopper Road
	
Gaithersburg, Maryland

	
28.
	
19 Firstfield Road
	
Gaithersburg, Maryland

	
29.
	
15020 Shady Grove Road
	
Gaithersburg, Maryland

	
30.
	
50 W. Watkins Mill Road
	
Gaithersburg, Maryland

	
31.
	
930 Clopper Road
	
Gaithersburg, Maryland

	
32.
	
1401 Research Boulevard
	
Rockville, Maryland

	
33.
	
1413 Research Boulevard
	
Rockville, Maryland

	
34.
	
1500 East Gude Drive
	
Rockville, Maryland

	
35.
	
1550 East Gude Drive
	
Rockville, Maryland

	
36.
	
Buildings 79 and 96 Charlestown Navy Yard
	
Charlestown, Massachusetts

	
37.
	
60 Westview Street
	
Lexington, Massachusetts

	
38.
	
29 Hartwell Avenue
	
Lexington, Massachusetts

	
39.
	
280 Pond Street
	
Randolph, Massachusetts

	
40.
	
500 Arsenal Street
	
Watertown, Massachusetts

	
41.
	
480 Arsenal Street
	
Worcester, Massachusetts

	
42.
	
381 Plantation Street
	
Worcester, Massachusetts

	
43.
	
100 Phillips Parkway
	
Montvale, New Jersey

	
44.
	
215 College Road
	
Paramus, New Jersey

	
45.
	
5100/5110 Campus Drive
	
Philadelphia, Pennsylvania

	
46.
	
279 Princeton Parkway
	
Princeton, New Jersey

	
47.
	
170 Williams Drive
	
Ramsey, New Jersey

	
48.
	
5 Triangle Drive
	
Research Triangle Park, North Carolina

	
49.
	
108 Alexander Road
	
Research Triangle Park, North Carolina

	
50.
	
7030 Kit Creek
	
Research Triangle Park, North Carolina

	
51.
	
702 Electronic Drive
	
Horsham, Pennsylvania

	
52.
	
3005 First Avenue
	
Seattle, Washington

Schedule 4.19 to

Term Loan Agreement

REAL PROPERTY

After the Closing Date, the properties owned by the Borrowers and their Subsidiaries are as follows:

	
1.
	
10933 North Torrey Pines Road
	
San Diego, California

	
2.
	
3010 Science Park Road
	
San Diego, California

	
3.
	
11099 North Torrey Pines Road
	
San Diego, California

	
4.
	
3535 General Atomics Court
	
San Diego, California

	
5.
	
3565 General Atomics Court
	
San Diego, California

	
6.
	
11025 Roselle Street
	
San Diego, California

	
7.
	
4757 Nexus Center Drive
	
San Diego, California

	
8.
	
6166 Nancy Ridge Drive
	
San Diego, California

	
9.
	
10505 Roselle Street
	
San Diego, California

	
10.
	
3770 Tansy Street
	
San Diego, California

	
11.
	
3530 John Hopkins Court
	
San Diego, California

	
12.
	
3550 John Hopkins Court
	
San Diego, California

	
13.
	
9363 Towne Centre Drive
	
San Diego, California

	
14.
	
9373 Towne Centre Drive
	
San Diego, California

	
15.
	
9393 Towne Centre Drive
	
San Diego, California

	
16.
	
11035 Roselle Street
	
San Diego, California

	
17.
	
11045 Roselle Street
	
San Diego, California

	
18.
	
11055 Roselle Street
	
San Diego, California

	
19.
	
11065 Roselle Street
	
San Diego, California

	
20.
	
11075 Roselle Street
	
San Diego, California

	
21.
	
6146 Nancy Ridge Drive
	
San Diego, California

	
22.
	
9880 Campus Point Drive
	
San Diego, California

	
23.
	
129/153/161 North Hill Street
	
Pasadena, California

	
24.
	
1311 Harbor Bay Parkway
	
Alameda, California

	
25.
	
1401 Harbor Bay Parkway
	
Alameda, California

	
26.
	
1431 Harbor Bay Parkway
	
Alameda, California

	
27.
	
1201 Harbor Bay Parkway
	
Alameda, California

	
28.
	
2140 Durant Avenue
	
Berkeley, California

	
29.
	
819-849 Mitten Road
	
Burlingame, California

	
30.
	
863 Mitten Road/866 Malcolm Road
	
Burlingame, California

	
31.
	
2425 Garcia 2400/2450 Bayshore
	
Mountain View, California

	
32.
	
2625/2627/2631 Hanover Street
	
Palo Alto, California

	
33.
	
341 Oyster Point Boulevard
	
San Francisco, California

	
34.
	
343 Oyster Point Boulevard
	
San Francisco, California

	
35.
	
150/154 Technology Parkway
	
Norcross, Georgia

	
36
	
2001 Aliceanna Street
	
Baltimore, Maryland

	
37.
	
8000/9000/10000 Virginia Manor Road
	
Beltsville, Maryland

	
38.
	
10150 Old Columbia Road
	
Columbia, Maryland

	
39.
	
300 Professional Drive
	
Gaithersburg, Maryland

	
40.
	
401 Professional Drive
	
Gaithersburg, Maryland

	
41.
	
25/35/45 West Watkins Mill Road
	
Gaithersburg, Maryland

	
42.
	
708 Quince Orchard Road
	
Gaithersburg, Maryland

	
43.
	
940 Clopper Road
	
Gaithersburg, Maryland

	
44.
	
1201 Clopper Road
	
Gaithersburg, Maryland

	
45.
	
19 Firstfield Road
	
Gaithersburg, Maryland

	
46.
	
15020 Shady Grove Road
	
Gaithersburg, Maryland

	
47.
	
50 W. Watkins Mill Road
	
Gaithersburg, Maryland

	
48.
	
20 Firstfield Road
	
Gaithersburg, Maryland

	
49.
	
22 Firstfield Road
	
Gaithersburg, Maryland

	
50.
	
1300 Quince Orchard Road
	
Gaithersburg, Maryland

	
51.
	
930 Clopper Road
	
Gaithersburg, Maryland

	
52.
	
1330 Piccard Drive
	
Rockville, Maryland

	
53.
	
1401 Research Boulevard
	
Rockville, Maryland

	
54.
	
1413 Research Boulevard
	
Rockville, Maryland

	
55.
	
1500 East Gude Drive
	
Rockville, Maryland

	
56.
	
1550 East Gude Drive
	
Rockville, Maryland

	
57.
	
5 Research Place
	
Rockville, Maryland

	
58.
	
620 Memorial Drive
	
Cambridge, Massachusetts

	
59.
	
Buildings 79 and 96 Charlestown Navy Yard
	
Charlestown, Massachusetts

	
60.
	
60 Westview Street
	
Lexington, Massachusetts

	
61.
	
29 Hartwell Avenue
	
Lexington, Massachusetts

	
62.
	
280 Pond Street
	
Randolph, Massachusetts

	
63.
	
500 Arsenal Street
	
Watertown, Massachusetts

	
64.
	
480 Arsenal Street
	
Watertown, Massachusetts

	
65.
	
377 Plantation Street
	
Worcestor, Massachusetts

	
66.
	
One Innovation Drive
	
Worcestor, Massachusetts

	
67.
	
381 Plantation Street
	
Worcestor, Massachusetts

	
68.
	
100 Phillips Parkway
	
Montvale, New Jersey

	
69.
	
215 College Road
	
Paramus, New Jersey

	
70.
	
5100/5110 Campus Drive
	
Philadelphia, Pennsylvania

	
71.
	
279 Princeton Parkway
	
Princeton, New Jersey

	
72.
	
170 Williams Drive
	
Ramsey, New Jersey

	
73.
	
100 Capitola Drive
	
Durham, North Carolina

	
74.
	
800/801 Capitola Drive
	
Durham, North Carolina

	
75.
	
5 Triangle Drive
	
Research Triangle Park, North Carolina

	
76.
	
108 Alexander Road
	
Research Triangle Park, North Carolina

	
77.
	
7030 Kit Creek
	
Research Triangle Park, North Carolina

	
78.
	
702 Electronic Drive
	
Horsham, Pennsylvania

	
79.
	
14225 Newbrook Drive
	
Chantilly, Virginia

	
80.
	
1102/1124 Columbia Street
	
Seattle, Washington

	
81.
	
3000/3018 Western Avenue
	
Seattle, Washington

	
82.
	
3005 First Avenue
	
Seattle, Washington

After the Closing Date, the parcels of land owned by the Borrowers and their Subsidiaries are as follows:

	
1.
	
4757 Nexus Centre Drive II
	
San Diego, California

	
2.
	
Capitola Land
	
Durham, North Carolina

	
3.
	
636/700 South Raymond Avenue
	
Pasadena, California

Schedule 4.21 to

Term Loan Agreement

INDEBTEDNESS

After the Closing Date, the Borrowers and their Subsidiaries will have outstanding indebtedness as described in Sections 6.11 and 6.12 as follows:

	

Lender
	

Property Secured
	
Amount Outstanding

  As of June 30, 2001

	
Teachers Insurance and Annuity

Association of America
	
One Innovation Drive
	
$ 10,489,000

	
LaSalle National Bank
	
100/800/801 Capitola Drive
	
$ 12,249,000

	
First Union National Bank
	
20/22 Firstfield Road &

1300 Quince Orchard Road
	
$ 9,952,000

	
LaSalle National Bank
	
620 Memorial Drive
	
$ 17,603,000

	
State Street Bank and Trust
	
14225 Newbrook Drive &

3000/3018 Western Avenue
	
$ 35,455,000

	
Credit Suisse First Boston

Mortgage Capital LLC
	
377 Plantation Street &

6166 Nancy Ridge Road
	
$ 18,736,000

	
Merrill Lynch Credit Corporation
	
25/35/45 W. Watkins Mill Road &

708 Quince Orchard Road
	
$ 24,585,000

	
Credit Suisse First Boston

Mortgage Capital LLC
	
11025-11075 Roselle Street
	
$ 24,100,000

	
United States Trust Company

of New York
	
1431 Harbor Bay Parkway
	
$ 5,425,000

	
Aid Association for Lutherans
	
3535/3565 General Atomics Court
	
$ 16,197,000

	
Aid Association for Lutherans
	
1102/1124 Columbia Street
	
$ 19,188,000

	
Keybank National Association
	
1201 Clopper Road

(Development project)
	
$ 18,981,000

	
Societe Generale
	
341/343 Oyster Point

(Development project)
	
$ 12,063,000

	
Syndicate of lenders led

By Fleet National Bank
	
Unsecured
	
$ 274,000,000

The following secured note payable was entered into on August 3, 2001:

	
Aid Association for Lutherans
	
9880 Campus Point Drive
	
$12,000,0002001 EXHIBIT 10.22

EXHIBIT 10.22

ALEXANDRIA REAL ESTATE EQUITIES, INC.

2000 DEFERRED COMPENSATION PLAN

 

TABLE OF CONTENTS

	 	 	
PAGE

	
ARTICLE I
	
DEFINITIONS
	
1

	
  1.1
	
Definitions
	
1

	
  1.2
	
Terms
	
3

	
  1.3
	
Trust References
	
3

	
ARTICLE II
	
PURPOSE
	
3

	
ARTICLE III
	
PARTICIPATION
	
3

	
  3.1
	
Commencement of Participation
	
3

	
  3.2
	
Continuation of Participation
	
4

	
ARTICLE IV
	
CONTRIBUTIONS
	
4

	
  4.1
	
Compensation Deferrals
	
4

	
  4.2
	
Matching Contributions
	
4

	
  4.3
	
Company Contribution
	
5

	
  4.4
	
Time and Form of Contributions
	
5

	
ARTICLE V
	
VESTING
	
6

	
  5.1
	
Vesting
	
6

	
ARTICLE VI
	
ACCOUNTS
	
6

	
  6.1
	
Accounts
	
6

	
  6.2
	
Benchmark Investment Elections
	
7

	
  6.3
	
Forfeitures
	
7

	
ARTICLE VII
	
DISTRIBUTIONS
	
7

	
  7.1
	
Distribution Election
	
7

	
  7.2
	
Payment Options
	
8

	
  7.3
	
Commencement of Payment
	
8

	
  7.4
	
Effect of Early Distribution
	
8

	
  7.5
	
Changes Affecting an Education Account
	
8

	
ARTICLE VIII
	
BENEFICIARIES
	
9

	
  8.1
	
Beneficiaries
	
9

	
  8.2
	
Lost Beneficiary
	
9

	
  8.3
	
Individuals Designated in Connection with Education Accounts
	
9

	
  8.4
	
Enforceability of Beneficiary Designations
	
9

	
ARTICLE IX
	
FUNDING
	
10

	
  9.1
	
Prohibition Against Funding
	
10

	
  9.2
	
Deposits in Trust
	
10

	
  9.3
	
Withholding of Employee Contributions
	
10

	
ARTICLE X
	
ADMINISTRATION
	
10

	
  10.1
	
Plan Administration
	
10

	
  10.2
	
Administrator
	
11

	
  10.3
	
Discretionary Authority of the Administrator
	
11

	
  10.4
	
Claims Procedures
	
11

	
ARTICLE XI
	
GENERAL PROVISIONS
	
12

	
  11.1
	
No Assignment
	
12

	
  11.2
	
No Employment Rights
	
13

	
  11.3
	
Incompetence
	
13

	
  11.4
	
Identity
	
13

	
  11.5
	
Other Benefits
	
13

	
  11.6
	
No Liability
	
13

	
  11.7
	
Expenses
	
13

	
  11.8
	
Amendment and Termination
	
13

	
  11.9
	
Company Determinations
	
14

	
  11.10
	
Arbitration
	
14

	
  11.11
	
Construction
	
14

	
  11.12
	
Governing Law
	
14

	
  11.13
	
Severability
	
14

	
  11.14
	
Headings
	
15

 

ALEXANDRIA REAL ESTATE EQUITIES, INC.

2000 DEFERRED COMPENSATION PLAN

Whereas, Alexandria Real Estate Equities, Inc. (the "Company") wishes to establish a program that will enable it to attract and retain key Employees; and the Company wishes to provide supplemental retirement and tax benefits for a select group of management or highly compensated Employees; 

Now, Therefore, the Company hereby adopts the Alexandria Real Estate Equities, Inc. 2000 Deferred Compensation Plan through its execution of the annexed Adoption Agreement.

ARTICLE 

Definitions

1.1Definitions.  The following terms have the meanings set forth herein, unless the context otherwise requires:

Account.  The bookkeeping account established for each Participant as provided in Section 6.1 hereof.  The term includes Education Accounts, Fixed Date Accounts and Retirement Accounts to the extent permitted under the Adoption Agreement, unless the context otherwise requires.

Administrator.  The person, persons, or entity designated in the Adoption Agreement to administer the Plan.  If no such person or entity is selected, the Administrator shall be deemed to be the Company. 

Adoption Agreement.  The Adoption Agreement for the nonqualified deferred compensation plan executed by the Company to establish the Plan, in the form annexed hereto.

Benchmark Investment Fund.  The investment fund or funds selected by the Administrator from time to time. 

Benchmark Return.  The amount of any increase or decrease in the balance of a Participant's Account reflecting the gain or loss, net of any expenses, on the assets deemed invested in each Benchmark Investment Fund by the Participant from time to time. 

Claims Notice.  Defined in Section 10.4 hereof.

Code.  The Internal Revenue Code of 1986, as amended.

Company.  The business entity that adopts the Plan by execution of the Adoption Agreement.

Company Account.  The account established by the Company for the purpose of investing the Plan assets.

Company Contribution.  A discretionary contribution that is credited to one or more of a Participant's Accounts in accordance with the terms of Section 4.3 hereof and the Adoption Agreement.

Compensation.  Compensation shall have the meaning specified in the Adoption Agreement.

Compensation Deferrals.  The portion of Compensation that a Participant elects to defer in accordance with Section 4.1 hereof.

Education Account.  An Account established for a Participant with distribution to be made when the Participant incurs expenses associated with college, post-graduate or professional education, with the timing of distribution from such Account based upon the age of a specifically designated person.

Effective Date.  The date specified by the Company in the Adoption Agreement as the date the Plan becomes effective.

Eligible Employee.  An Employee of the Company who satisfies the eligibility requirements specified in the Adoption Agreement.

Employee.  Any person employed by the Company.

ERISA.  Employee Retirement Income Security Act of 1974, as amended. 

Fixed Date Account.  An Account established for a Participant with distributions to be made on a date certain, which is specified by the Participant in a Participation Election Form.

Matching Contribution.  A contribution that is credited to one or more of a Participant's Accounts in accordance with the terms of Section 4.2 hereof and the Adoption Agreement. 

Participant.  An Eligible Employee who has submitted a Participation Election Form agreeing to participate in the Plan and whose Account has not been fully paid out.

Participation Election Form.  The separate written agreement, submitted to the Administrator, by which an Eligible Employee agrees to participate in the Plan and indicates all necessary information to establish the Account(s) for such Eligible Employee as a Participant under the Plan, including, but not limited to, the amount of Compensation Deferral, and the designation of his or her Account(s) as Education, Retirement or Fixed Date.

Plan.  The nonqualified deferred compensation plan adopted by the Company pursuant to the Adoption Agreement and any amendments thereto, which shall incorporate this 2000 Deferred Compensation Plan.

Plan Year.  The twelve (12) consecutive month period designated by the Company in the Adoption Agreement.

Retirement Account.  An Account established for a Participant from which distributions are to be made following retirement in accordance with the Adoption Agreement.

Total and Permanent Disability.  Any medically determinable physical or mental disorder that renders a Participant incapable of continuing employment with the Company and is expected to continue for the remainder of a Participant's life. 

Trust.  The agreement attached as Appendix B to the Adoption Agreement, between the Company and the Trustee under which the assets of the Plan are held, administered and managed.

Trustee.  The Trustee designated in Trust, including any and all successor trustees to the Trust.

Unforeseeable Emergency.  Defined in Section 7.3 hereof, and subject to interpretation in accordance with regulations governing such definition promulgated under the Code.

Years of Plan Service.  Defined in Section 5.1(a)(2) hereof.

Years of Service.  Defined in Section 5.1(a)(1) hereof.

1.2Terms.  Capitalized terms shall have meanings as defined herein.  Singular nouns shall be read as plural, and masculine pronouns shall be read as feminine, and vice versa, where appropriate.

1.3Trust References.  Any references to the operation of a Trust contained in this Plan shall only be given effect if and to the extent the Company has elected in the Adoption Agreement to establish such a Trust in connection with the Plan.

ARTICLE II 

Purpose

The purpose of this Plan is to provide key Employees supplemental retirement and tax benefits through the deferral of compensation. The Plan is intended to be a "plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees" within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, and shall be interpreted and administered to the extent possible in a manner consistent with that intent.

ARTICLE III 

Participation

3.1Commencement of Participation.  Each Eligible Employee shall become a Participant at the earlier of the date on which his or her Participation Election Form first becomes effective or the date on which a Company Contribution is first credited to his or her Account.

3.2Continuation of Participation.  Each Eligible Employee shall remain a Participant hereunder until all amounts credited to his or her Account are distributed in full. No Compensation Deferrals are permitted in any Plan Year in which an Employee no longer satisfies the criteria for eligibility set forth in the Adoption Agreement.

ARTICLE IV

Contributions

4.1Compensation Deferrals.

(a)The Company shall credit to the Account of a Participant an amount equal to the amount designated in the Participant's Participation Election Form for that Plan Year.  Such amounts shall not be made available to such Participant, except as provided in ARTICLE VII hereof, and, as Compensation Deferrals, shall reduce such Participant's Compensation from the Company in accordance with the provisions of the applicable Participation Election Form; provided, however, that all such amounts shall be subject to the rights of the general creditors of the Company as provided in ARTICLE IX hereof.

(b)Each Eligible Employee shall deliver a Participation Election Form to the Company before any Compensation Deferrals can become effective.  Such Participation Election Form shall be void with respect to any Compensation Deferral unless submitted before the beginning of the calendar year during which the amount to be deferred will be earned; provided, however, that for the initial Plan Year, the Employee may elect to defer bonus earned (but not yet payable or the amount of which is not substantially certain) in calendar year 2000.  Notwithstanding the foregoing, in the year in which the Plan is first adopted or an Employee is first eligible to participate, such Participation Election Form shall be filed within thirty (30) days of the date on which the Plan is adopted or the date on which an Employee is first eligible to participate, respectively, with respect to Compensation earned during the remainder of the calendar year.

(c)The Participation Election Form shall, subject to the limitations set forth in this Section 4.1, designate the amount of Compensation deferred by each Participant, the beneficiary or beneficiaries of the Participant and such other items as the Administrator may prescribe.  Such designations shall remain effective unless amended as provided in subsection (d), below.

(d)A Participant may amend his or her Participation Election Form from time to time; provided, however, that any amendment to the amount of a Participant's Compensation Deferrals shall comply with the provisions of subsection (b), above.

4.2Matching Contributions.  If elected by the Company in the Adoption Agreement, the Company shall also credit to the Account of each Participant who makes Compensation Deferrals a Matching Contribution in an amount equal to the amount specified in the Adoption Agreement. If a Trust has been elected by the Company in the Adoption Agreement, the Company shall contribute to the Trust for the Participant's benefit the amount of such Matching Contributions in accordance with the Adoption Agreement and this Plan.  If a Trust has not been elected by the Company in the Adoption Agreement, the Company shall contribute to the Company Account the amount of such Matching Contributions in accordance with the Adoption Agreement and this Plan.

4.3Company Contribution.  If elected by the Company in the Adoption Agreement, the Company may from time to time make a discretionary contribution to the Account of a Participant. If a Trust has been elected by the Company in the Adoption Agreement, the Company shall contribute to the Trust for the Participant's benefit the amount of such Company Contributions in accordance with the Adoption Agreement and this Plan.  If a Trust has not been elected by the Company in the Adoption Agreement, the Company shall contribute to the Company Account the amount of such Company Contributions in accordance with the Adoption Agreement and this Plan.

4.4Time and Form of Contributions. 

(a)If the Company has elected a Trust in the Adoption Agreement:

(i)Compensation Deferrals and Matching Contributions shall be transferred to the Trust as soon as administratively feasible for the Company following the close of the period selected in the Adoption Agreement.  The Company shall also provide at that time any necessary instructions regarding the allocation of such amounts among the Accounts of Participants.

(ii)Company Contributions shall be transferred to the Trust at such time as the Company shall determine. The Company shall also transmit at that time any necessary instructions regarding the allocation of such amounts among the Accounts of Participants.

(iii)All Compensation Deferrals, Matching Contributions and Company Contributions to the Trust shall be made in the form of cash, cash equivalents of U.S. currency or other property acceptable to the Trustee.

(b)If the Company has not elected a Trust in the Adoption Agreement:

(i)Compensation Deferrals and Matching Contributions shall be transferred to the Company Account as soon as administratively feasible for the Company following the close of the period selected in the Adoption Agreement.  The Company shall also provide at that time any necessary instructions regarding the allocation of such amounts among the Accounts of Participants.

(ii)Company Contributions shall be transferred to the Company Account at such time as the Company shall determine. The Company shall also transmit at that time any necessary instructions regarding the allocation of such amounts among the Accounts of Participants.

(iii)All Compensation Deferrals, Matching Contributions and Company Contributions to the Company Account shall be made in the form of cash, cash equivalents of U.S. currency or other property acceptable to the Trustee.

ARTICLE V

Vesting

5.1Vesting.

(a)Except as otherwise provided herein, a Participant shall have a vested right to the portion of his or her Account attributable to Compensation Deferrals and any Benchmark Returns on such Compensation Deferrals.  Except as otherwise provided herein, Matching Contributions and Company Contributions, and any amounts attributable to Benchmark Returns on such contributions, shall vest in accordance with the provisions set forth in the Adoption Agreement; provided, however, that all such amounts shall be subject to the rights of the general creditors of the Company as provided in ARTICLE IX hereof.

(i)For purposes of this ARTICLE, a Participant's "Years of Service" shall be determined by the twelve (12) month period (as defined in the Adoption Agreement) of his or her employment with the Company.

(ii)For purposes of this ARTICLE, a Participant's "Years of Plan Service" shall include Plan Years specified in the Adoption Agreement during which the Participant continues his or her employment with the Company for the entire Plan Year.

(b)If elected by the Company in the Adoption Agreement, then, notwithstanding Section 5.1 hereof, a Participant who attains the age specified in the Adoption Agreement shall be fully vested in amounts credited to his or her Account, regardless of his or her Years of Service or Years of Plan Service.

(c)If elected by the Company in the Adoption Agreement, a Participant who has a termination of employment due to Total and Permanent Disability shall be fully vested in the amounts credited to his or her Account regardless of his or her Years of Service or Years of Plan Service.

(d)If elected by the Company in the Adoption Agreement, a Participant shall be fully vested in the amounts credited to his or her Account upon such Participant's death, regardless of his or her Years of Service or Years of Plan Service.

(e)Any amounts credited to a Participant's Account that are not vested at the time of his or her termination of employment with the Company shall be forfeited as provided in Section 6.3 hereof.

ARTICLE VI

Accounts

6.1Accounts.

(a)The Administrator shall establish and maintain a bookkeeping Account in the name of each Participant.  The Administrator may also establish any subaccounts that it feels may be appropriate, including designation of a portion of a Participant Account as a Fixed Date, Education or Retirement Account.

(b)Each Participant's Account shall be credited with Compensation Deferrals, any Matching Contributions allocable thereto, any Company Contributions and any amounts attributable to Benchmark Returns. Each Participant's Account shall be reduced by any gross amounts distributed from the Account pursuant to ARTICLE VII hereof and any other appropriate adjustments.  Such adjustments shall be made as frequently as is administratively feasible.

6.2Benchmark Investment Elections.

(a)The Administrator shall from time to time select types of Benchmark Investment Funds and specific Benchmark Investment Funds for deemed investment designation by Participants with respect to Accounts.  The Administrator shall notify the Participants of the types of Benchmark Investment Funds and the specific Benchmark Investment Funds selected from time to time.  On the Participation Election Form, the Participant shall designate the specific Benchmark Investment Funds in which the Account of the Participant will be deemed to be invested in for purposes of determining the Benchmark Return to be credited to the Account.  In making the designation, the Participant may specify that all or any percentage of his/her Account be deemed to be invested in one or more of the available types of Benchmark Investment Funds. The Administrator from time to time will determine the minimum percentage allocation per investment fund and the frequency with which allocations may be changed.

(b)If a Trust has been chosen in the Adoption Agreement, Trust assets shall be invested as provided in the Trust Agreement; provided, however, that the Trustee may consider a Participant's selection of a Benchmark Investment Fund when investing Trust assets.

6.3Forfeitures.  Any forfeitures from a Participant's Account may be used to reduce succeeding Matching Contributions, Company Contributions or, if applicable, administrative expenses and trustee fees and expenses, until such forfeitures have been entirely so applied.

ARTICLE VII

Distributions

7.1Distribution Election.

(a)By designation of a Fixed Date Account and/or a Retirement Account, each Participant shall specify in his or her Participation Election Form the date on which payment shall begin as provided in Section 7.3 hereof.  Such designation shall apply to all amounts distributed from such Participant's Account.

(b)A Participant may modify the election made under Section 7.1(a) by submitting to the Administrator a completed and executed form provided for such purpose, provided, however, that such change shall not be given any effect unless a full calendar year passes between the calendar year in which such election form is submitted and the calendar year in which the distribution date designated in such form occurs.  

7.2Payment Options.  

Unless otherwise provided in Section 7.3, benefits shall be payable in a lump sum payment

7.3Commencement of Payment.

(a)Except as otherwise provided herein, payments to a Participant shall commence as soon as administratively feasible after the Participant has satisfied the criteria set forth in the Adoption Agreement for a distribution hereunder or if no such criteria are set forth in the Adoption Agreement, then pursuant to the Participant's Participation Election Form.

(b)If the Company has elected this option in the Adoption Agreement, the Administrator may permit an early distribution of part or all of any deferred amounts; provided, however, that such distribution shall be made only if the Administrator, in its sole discretion, determines that the Participant has experienced an "unforeseeable emergency" if early distribution were not permitted. "Unforeseeable emergency" shall mean any severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or a dependent (as defined in Section 152(a) of the Code) of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseen circumstances arising as a result of events beyond the control of the Participant.  Any distribution pursuant to this provision is limited to the amount necessary to meet the emergency, and any amounts necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from such distribution. The distribution may not exceed the then vested portion of the Participant's Account.  The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved (i) through reimbursement or compensation by insurance or otherwise; (ii) by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or (iii) by cessation of deferrals under the Plan. Furthermore, examples of events that would not be considered unforeseeable emergencies include the need to send a Participant's child to college or the desire to purchase a home.

(c) Upon termination of employment for any reason, all vested amounts shall be paid in a lump sum, as soon as administratively feasible, to the Participant.

7.4Effect of Early Distribution.  If the Company has so indicated in the Adoption Agreement, if a Participant elects to receive a distribution of vested amounts in his or her Account on a date prior to that established under the Plan, including the Adoption Agreement and the Participant's Participation Election Form, the amount distributed shall equal that percentage (established by the Company in the Adoption Agreement) of the Participant's vested amounts and the balance shall be treated as forfeited by the Participant.

7.5Changes Affecting an Education Account.  In the event of the death of the individual whose age is used for purposes of the timing of a distribution from an Education Account, the Education Account associated with the deceased person shall be treated for all purposes as a Retirement Account of the Participant under the Plan.

ARTICLE VIII

Beneficiaries

8.1Beneficiaries.  Each Participant may from time to time designate one or more persons (who may be any one or more members of such person's family or other persons, administrators, trusts, foundations or other entities) as his or her beneficiary under the Plan.  Such designation shall be made on a form prescribed by the Administrator.  Each Participant may at any time and from time to time, change any previous beneficiary designation, without notice to or consent of any previously designated beneficiary, by amending his or her previous designation on a form prescribed by the Administrator.  If the beneficiary does not survive the Participant (or is otherwise unavailable to receive payment) or if no beneficiary is validly designated, then the amounts payable under this Plan shall be paid to the Participant's surviving spouse, if any, and, if none, to his or her surviving issue per stirpes, if any, and, if none, to his or her estate and such person shall be deemed to be a beneficiary hereunder.  (For purposes of this ARTICLE, a per stirpes distribution to surviving issue means a distribution to such issue as representatives of the branches of the descendants of such Employee; equal shares are allotted for each living child and for the descendants as a group of each deceased child of the deceased Employee).  If more than one person is the beneficiary of a Participant, each such person shall receive a pro rata share of any distributions payable unless otherwise designated on the applicable form.  If a beneficiary who is eligible to receive benefits dies, all benefits that were payable to such beneficiary shall then be payable to the estate of that beneficiary.

8.2Lost Beneficiary.

(a)All Participants and beneficiaries shall have the obligation to keep the Administrator informed of their current address until such time as all benefits due have been paid.

(b)If a Participant or beneficiary cannot be located by the Administrator exercising due diligence, then, in its sole discretion, the Administrator may presume that the Participant or beneficiary is deceased for purposes of the Plan and all unpaid amounts (net of due diligence expenses) owed to the Participant or beneficiary shall be paid accordingly or, if a beneficiary cannot be so located, then such amounts may be forfeited in accordance with Section 6.3 hereof.  Any such presumption of death shall be final, conclusive and binding on all parties.

8.3Individuals Designated in Connection with Education Accounts.  In establishing an Education Account, a Participant shall name a specific living person whose age shall trigger distribution of amounts in such Education Account. The distribution shall be made to the Participant, not the person so designated.

8.4Enforceability of Beneficiary Designations.  Any beneficiary designation form is only a generalized, suggested form.  At the time of the Participant's death and under the laws of the jurisdiction applicable to the Participant at the time of death, the form may not be considered legally effective to transfer the amounts from the Participant's Account(s) to the beneficiary so designated. 

ARTICLE IX

Funding

9.1Prohibition Against Funding.  Should any investment be acquired in connection with the liabilities assumed by the Company under this Plan, it is expressly understood and agreed that the Participants and beneficiaries shall not have any right with respect to, or claim against, such assets nor shall any such purchase be construed to create a trust of any kind or a fiduciary relationship between the Company and the Participants, their beneficiaries or any other person.  Any such assets (including any amounts deferred by a Participant or contributed by the Company pursuant to ARTICLE IV hereof) shall be and remain a part of the general, unpledged, unrestricted assets of the Company, subject to the claims of its general creditors.  Each Participant and beneficiary shall be required to look to the provisions of this Plan and to the Company itself for enforcement of any and all benefits due under this Plan, and to the extent any such person acquires a right to receive payment under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Company.  The Company (or the Trust, if any) shall be designated owner and beneficiary of investments acquired in connection with the Company's obligations under this Plan.

9.2Deposits in Trust.  Subject to Section 9.1, and notwithstanding any other provision of this Plan to the contrary, the Company may deposit into the Trust any amounts it deems appropriate to pay the benefits under this Plan.  The amounts so deposited may include all Compensation Deferrals made pursuant to a Participation Election Form by a Participant, any Company Contributions and any Matching Contributions.  Notwithstanding deposit of assets into a Trust, the Company reserves the right at any time and from time to time to pay benefits to Plan Participants or their beneficiaries in whole or in part from sources other than the Trust.

9.3Withholding of Employee Contributions.  The Administrator is authorized to make any and all necessary arrangements with the Company in order to withhold the Participant's Compensation Deferrals under Section 4.1 hereof from his or her pay.  The Administrator shall determine the amount and timing of such withholding.

ARTICLE X

Administration

10.1Plan Administration.  The Administrator shall have complete control and authority to determine the rights and benefits and all claims arising under the Plan of any Participant, beneficiary, deceased Participant, or other person claiming to have any interest under the Plan.  When making a determination or calculation, the Administrator shall be entitled to rely on information furnished by a Participant, a beneficiary, the Company or the Trustee, if applicable.  The Administrator shall have the responsibility for complying with any applicable reporting and disclosure requirements of ERISA. 

10.2Administrator.

(a)The Administrator is expressly empowered to limit the amount of Compensation that may be deferred; to deposit amounts into trust in accordance with Section 9.2 hereof and the Adoption Agreement; to interpret the Plan, and to determine all questions arising in the administration, interpretation and application of the Plan; to employ actuaries, accountants, counsel, and other persons it deems necessary in connection with the administration of the Plan; and to take all other necessary and proper actions to fulfill its duties as Administrator.

(b)The Administrator shall not be liable for any actions by it hereunder, unless due to its own negligence, willful misconduct or lack of good faith.

(c)The Administrator shall be indemnified and held harmless by the Company from and against all personal liability to which it may be subject by reason of any act done or omitted to be done in its official capacity as Administrator in good faith in the administration of the Plan, including all expenses reasonably incurred in its defense in the event the Company fails to provide such defense upon the request of the Administrator.  The Administrator is relieved of all responsibility in connection with its duties hereunder to the fullest extent permitted by law, short of breach of duty to the Participants and their beneficiaries.

10.3Discretionary Authority of the Administrator.  The Administrator shall be vested with sole discretionary authority (i) to construe and interpret the Plan and the Participant's Participation Election Form (collectively referred to as "Documents"), their terms, and any rules and regulations promulgated thereunder, including but not limited to resolving ambiguities, inconsistencies and omissions, (ii) to construe and interpret the Federal and state laws and regulations that relate to the Documents, (iii) to decide all factual questions arising in connection with the Documents, and (iv) to decide all other questions arising in connection with the Documents, including but not limited to determinations of eligibility, entitlement to benefits, and vesting.  All findings of the Administrator shall be final and shall be binding and conclusive upon all persons having any interest in the Plan.

10.4Claims Procedures.  

(a)In the event a Participant requests payment hereunder and the Administrator has determined that the Participant is not entitled to all or some portion of such payment, the Administrator shall provide to the Participant a written statement (a "Claims Notice"), stating the specific reason or reasons for such denial, in language calculated to be understood by the Participant. The Claims Notice shall also refer to the Plan provision on which such denial is based, and, where appropriate, an explanation of what the Participant may do to perfect his or her claim. In addition, the Participant shall be furnished with an explanation of the Plan's claims review procedures.  The Claims Notice will be given to the Participant within 90 days after the Administrator receives the Participant's claim, unless special circumstances require an extension of time, in which case, the Administrator will have up to an additional 90 days for processing the claim.  If an extension of time for processing the claim is required, written notice of the extension will be furnished to the applicant before the end of the initial 90-day period. 

(b)Any Participant who has been denied a benefit by a decision of the Administrator pursuant to Section 10.4(a) shall be entitled to request that the Administrator give further consideration to his or her claim by filing with the Administrator a request for a hearing, together with a written statement of the reasons why the Participant believes his claim should be paid and any documents pertinent to such consideration. Such materials shall be filed with the Administrator no later than 60 days after receipt by the Participant of the Claims Notice. The Administrator will notify the Participant of the hearing date, time and location, and give the Participant and his or her representative the opportunity to review all documents in the possession of the Administrator that are pertinent to the denial of the Participant's claim. The Participant shall be responsible for all expenses incurred in connection with this review process. A final decision shall be rendered in writing with respect to the claim no later than 60 days following the hearing, unless special circumstances require an extension of time (not to exceed an additional 60 days), in language calculated to be understood by the Participant, and setting forth the reasons for the disposition and specific references to Plan provisions on which the decision is based.  

(c)The Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims.  The Administrator may require an applicant who wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the applicant's own expense.

(d)No legal action for benefits under the Plan pursuant to Section 11.10 hereof may be brought until the claimant (i) has submitted a written application for benefits in accordance with Section 10.4(a) above, (ii) has been notified by the Administrator that the application is denied, (iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 10.4(b) above and (iv) has been notified in writing that the Administrator has denied the appeal.

ARTICLE XI

General Provisions

11.1No Assignment.  Benefits or payments under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, garnishment or charge, whether voluntary or involuntary, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall not be valid, nor shall any such benefit or payment be in any way liable for or subject to the debts, contracts, liabilities, engagement or torts of any Participant or beneficiary, or any other person entitled to such benefit or payment pursuant to the terms of this Plan, except to such extent as may be required by law.  If any Participant or beneficiary or any other person entitled to a benefit or payment pursuant to the terms of this Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit or payment under this Plan, in whole or in part, or if any attempt is made to subject any such benefit or payment, in whole or in part, to the debts, contracts, liabilities, engagements or torts of the Participant or beneficiary or any other person entitled to any such benefit or payment pursuant to the terms of this Plan, then such benefit or payment, in the discretion of the Administrator, shall cease and terminate with respect to such Participant or beneficiary, or any other such person.

11.2No Employment Rights.  Participation in this Plan shall not be construed to confer upon any Participant the legal right to be retained in the employ of the Company, or give a Participant or beneficiary, or any other person, any right to any payment whatsoever, except to the extent of the benefits provided for hereunder.  Each Participant shall remain subject to discharge to the same extent as if this Plan had never been adopted.

11.3Incompetence.  If the Administrator determines that any person to whom a benefit is payable under this Plan is incompetent by reason of physical or mental disability, the Administrator shall have the power to cause the payments becoming due to such person to be made to another for his or her benefit without responsibility of the Administrator or the Company to see to the application of such payments.  Any payment made pursuant to such power shall, as to such payment, operate as a complete discharge of the liabilities of the Company, the Administrator and the Trustee.

11.4Identity.  If, at any time, any doubt exists as to the identity of any person entitled to any payment hereunder or the amount or time of such payment, the Administrator shall be entitled to hold such sum until such identity or amount or time is determined or until an order of a court of competent jurisdiction is obtained.  The Administrator shall also be entitled to pay such sum into the court in accordance with the appropriate rules of law. Any expenses incurred by the Company, the Administrator, and the Trust incident to such proceeding or litigation will be deemed a distribution from the Account pursuant to ARTICLE VII hereof and will be deducted from the balance in the Account of the affected Participant.

11.5Other Benefits.  The benefits of each Participant or beneficiary hereunder shall be in addition to any benefits paid or payable to or on account of the Participant or beneficiary under any other pension, disability, annuity or retirement plan or policy whatsoever.

11.6No Liability.  No liability shall attach to or be incurred by the Company, the Trustee or any Administrator under or by reason of the terms, conditions and provisions contained in this Plan, or for the acts or decisions taken or made thereunder or in connection therewith; and as a condition precedent to the establishment of this Plan or the receipt of benefits thereunder, or both, such liability, if any, is expressly waived and released by each Participant and by any and all persons claiming under or through any Participant or any other person.  Such waiver and release shall be conclusively evidenced by any act or participation in or the acceptance of benefits or the making of any election under this Plan.

11.7Expenses.  Except as otherwise provided herein or in the Adoption Agreement, all expenses incurred in the administration of the Plan, whether incurred by the Company or the Plan, shall be paid by the Company.  Any investment-related expenses shall be charged directly to the Account for which such investments were made.  

11.8Amendment and Termination.

(a)Except as otherwise provided in this section, the Company shall have the sole authority to modify, amend or terminate this Plan; provided, however, that any modification or termination of this Plan shall not reduce, alter or impair, without the consent of a Participant, a Participant's right to any amounts already credited to his or her Account on the day before the effective date of such modification or termination.

(b)The Company reserves the right to make any modification or amendment to the Plan or the Adoption Agreement that it deems necessary to comply with any requirements of law or to insure favorable tax treatment under the Plan.

11.9Company Determinations.  Any determinations, actions or decisions of the Company (including, but not limited to, Plan amendments and Plan termination) shall be made by the Administrator in accordance with its established procedures or by such other individuals, groups or organizations that have been properly appointed by the board of directors to make such determination or decision.

11.10Arbitration.  Any controversy or claim arising out of relating to this Plan shall be settled by binding arbitration in Los Angeles, California, in accordance with the Arbitration Rules and Procedures of the Judicial Arbitration and Mediation Service ("JAMS").  The parties shall seek to agree upon appointment of the arbitrator and the arbitration procedures.  If the parties are unable to reach such agreement, a single arbitrator shall be appointed pursuant to the JAMS Arbitration Rules and Procedures, and the arbitrator shall determine the arbitration procedures.  Any award pursuant to such arbitration shall be included in a written decision which shall state the legal and factual reasons upon which the award was based, including all the elements involved in the calculation of any award of damages.  Any such award shall be deemed final and binding and may be entered and enforced in any state or federal court of competent jurisdiction.  The arbitrator shall interpret the Plan in accordance with the laws of California to the extent not preempted by ERISA.  Each party shall pay its own fees and expenses incurred in any arbitration under this Plan, but the expenses of the arbitration shall be paid by the Company. 

11.11Construction.  All questions of interpretation, construction or application arising under or concerning the terms of this Plan shall be decided by the Administrator, in its sole and final discretion, whose decision shall be final, binding and conclusive upon all persons.

11.12Governing Law.  This Plan shall be governed by, construed and administered in accordance with the applicable provisions of ERISA, and any other applicable federal law, provided, however, that to the extent not preempted by federal law this Plan shall be governed by construed and administered under the laws of the state in which the Company maintains its principal place of business, other than its laws respecting choice of law.

11.13Severability.  If any provision of this Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of this Plan and this Plan shall be construed and enforced as if such provision had not been included therein.  If the inclusion of any Employee (or Employees) as a Participant under this Plan would cause the Plan to fail to comply with the requirements of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, then the Plan shall be severed with respect to such Employee or Employees, who shall be considered to be participating in a separate arrangement.

11.14Headings.  The ARTICLE headings contained herein are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge or describe the scope or intent of this Plan nor in any way shall they affect this Plan or the construction of any provision thereof. 

 

 

ALEXANDRIA REAL ESTATE EQUITIES, INC.

2000 VENTURE INVESTMENT DEFERRED COMPENSATION PLAN

Effective Date: December 1, 2000

TABLE OF CONTENTS

	 	 	
PAGE

	
ARTICLE 1
	
INTRODUCTION
	
1

	
ARTICLE 2
	
DEFINITIONS
	
1

	
2.1
	
"Affiliate"
	
1

	
2.2
	
"Beneficiary"
	
2

	
2.3
	
"Board"
	
2

	
2.4
	
"Bonus"
	
2

	
2.5
	
"Code"
	
2

	
2.6
	
"Company"
	
2

	
2.7
	
"Deferral Amount"
	
2

	
2.8
	
"Deferral Distribution Subaccount"
	
2

	
2.9
	
"Distribution Event"
	
2

	
2.10
	
"Effective Date"
	
2

	
2.11
	
"Eligible Employee"
	
2

	
2.12
	
"Employee"
	
3

	
2.13
	
"Enrollment Agreement"
	
3

	
2.14
	
"Normal Distribution Subaccount"
	
3

	
2.15
	
"Participant"
	
3

	
2.16
	
"Participant's Account"
	
3

	
2.17
	
"Plan"
	
3

	
2.18
	
"Plan Administrator"
	
3

	
2.19
	
"Plan Year"
	
3

	
2.20
	
"Termination of Service"
	
3

	
2.21
	
"Total Disability"
	
3

	
2.22
	
"Venture Investment"
	
4

	
2.23
	
"Venture Investment Company"
	
4

	
ARTICLE 3
	
DEFERRALS 
	
4

	
3.1
	
Bonus Deferrals
	
4

	
3.2
	
Deferral Amounts
	
5

	
3.3
	
Company to Retain Deferral Amounts; Unsecured Promise by Company
	
5

	
3.4
	
Changes in Deferrals
	
5

	
3.5
	
Administrative Rules
	
5

	
3.6
	
Deferral Distribution Subaccounts
	
5

	
ARTICLEe 4
	
PARTICIPANT'S ACCOUNTS AND PLAN INVESTMENTS 
	
5

	
4.1
	
Timing of Credits to Subaccounts
	
5

	
4.2
	
Deemed Investments
	
5

	
4.3
	
Valuations
	
6

	
ARTICLE 5
	
BENEFICIARIES 
	
6

	
ARTICLE 6
	
DISTRIBUTIONS AND DEFERRALS
	
6

	
6.1
	
Distributions.
	
6

	
6.2
	
Normal Distributions
	
7

	
6.3
	
Deferral Distributions
	
7

	
ARTICLE  7
	
BENEFITS ON ACCOUNT OF TERMINATION OF SERVICE OR DEATH 
	
7

	
ARTICLE 8
	
ADMINISTRATION
	
7

	
8.1
	
Plan Administrator
	
7

	
8.2
	
Claims, Inquiries and Appeals
	
8

	
8.3
	
Discretionary Authority of Plan Administrator
	
9

	
8.4
	
Costs and Expenses of Plan
	
9

	
ARTICLE  9
	
MISCELLANEOUS
	
10

	
9.1
	
Amendment of Plan
	
10

	
9.2
	
Termination of Plan
	
10

	
9.3
	
Plan Rules
	
10

	
9.4
	
Outside Consultants
	
10

	
9.5
	
No Assignment of Benefits
	
10

	
9.6
	
Absence of Other Agreements; Conflicts
	
10

	
9.7
	
No Employment Rights
	
11

	
9.8
	
Debt Offsets
	
11

	
9.9
	
Withholding
	
11

	
9.10
	
Unfunded Nature of Plan
	
11

	
9.11
	
Savings Clause
	
11

	
9.12
	
Arbitration
	
11

	
9.13
	
Headings
	
12

	
9.14
	
Rules of Gender and Number
	
12

	
9.15
	
Notices
	
12

	
9.16
	
Governing Law
	
12

ALEXANDRIA REAL ESTATE EQUITIES, INC.

2000 VENTURE INVESTMENT DEFERRED COMPENSATION PLAN

ARTICLE 1

Introduction

Whereas, Alexandria Real Estate Equities, Inc., a Maryland corporation (the "Company"), wishes to establish a nonqualified deferred compensation plan as set forth herein (the "Plan") to provide deferred compensation for a select group of management or highly compensated employees of the Company and its Affiliates that adopt the Plan;

Whereas, the Plan shall be effective December 1, 2000;

Whereas, the Company has the legal authority to establish the Plan pursuant to the laws of the State of Maryland;

Whereas, the Company wishes to provide that the Plan shall be called the Alexandria Real Estate Equities, Inc. 2000 Venture Investment Deferred Compensation Plan;

Whereas, the Company wishes to provide under the Plan for the payment of benefits to Participants in the Plan and their beneficiary or beneficiaries under the terms of the Plan and the terms of Participants' deferred compensation agreements;

Whereas, the Company wishes to provide under the Plan that the Company shall pay the entire cost of benefits under the Plan from its general assets and set aside contributions by the Company to meet its obligations under the Plan;

Whereas, the Company intends that the assets of the Plan shall at all times be subject to the claims of the general creditors of the Company in the event of the bankruptcy or financial insolvency of the Company; and

Whereas, the Company intends that any rights of Participants in the Plan and their beneficiaries be unsecured and unfunded for purposes of tax law and for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA").

Now, therefore, the Company does hereby establish the Plan as follows, pursuant to the adoption of the Plan by the Company's Board of Directors:

ARTICLE 2

Definitions

2.1"Affiliate" means any firm, partnership, limited liability partnership, corporation or limited liability corporation that (i) directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with the Company or (ii) is otherwise authorized by the Board to be considered the Company for purposes of this Plan.

2.2"Beneficiary" means the person or persons designated by the Participant in the Enrollment Agreement who are to receive any distributions payable upon the death of the Participant.

2.3"Board" means the Board of Directors of the Company.

2.4"Bonus" means a Participant's cash bonus for any Plan Year paid by the Company, before reduction pursuant to this Plan or any plan or agreement of the Company whereby compensation is deferred, including, without limitation, a plan whereby compensation is deferred in accordance with Code Section 401(k) or reduced in accordance with Code Section 125 and the Company's 2000 Deferred Compensation Plan.  Bonuses shall not include any other form of compensation, whether taxable or non-taxable, including, but not limited to, base salary, commissions, overtime and other forms of additional compensation.

2.5"Code" means the Internal Revenue Code of 1986, as amended from time to time.

2.6"Company" means Alexandria Real Estate Equities, Inc., a Maryland corporation, any Affiliate of the Company that adopts this Plan and any succeeding or continuing corporation that adopts this Plan.

2.7"Deferral Amount" means the amount of Bonus that the Participant elects to defer under the Enrollment Agreement and that the Participant and the Company mutually agree shall be deferred in accordance with the Plan.

2.8"Deferral Distribution Subaccount" means the individual account maintained for a Participant by the Plan Administrator in accordance with the terms of the Plan for purposes of making deferrals of amounts otherwise distributable to a Participant pursuant to the Plan following a Distribution Event to the Company's 2000 Deferred Compensation Plan.

2.9"Distribution Event" means the transaction by which the Company receives cash or freely tradable stock in connection with the initial public offering of stock of a Venture Investment Company, the acquisition of the Venture Investment Company for publicly traded stock or cash, or otherwise.  Each Venture Investment is expected to have a Distribution Event that is separate from the Distribution Events of other Venture Investments.

2.10"Effective Date" means December 1, 2000.

2.11"Eligible Employee" means a key Employee of the Company [ REDACTED

                                                                                                                                                                                              

                                                                                                                                                                                              

                                                                        ]

2.12"Employee" means a person employed by the Company on a regular, full-time, salaried basis.

2.13"Enrollment Agreement" means the agreement entered into by a Participant and the Company that specifies the Participant's Deferral Amount, the Participant's Normal Distribution Subaccount allocation, the Participant's Deferral Distribution Subaccount allocation, and the Participant's Beneficiary.

2.14"Normal Distribution Subaccount" means the individual account maintained for a Participant by the Plan Administrator in accordance with the terms of the Plan for purposes of making a distribution of a benefit following a Distribution Event.

2.15"Participant" means any Eligible Employee who has elected to participate in the Plan by completing, executing and returning an Enrollment Agreement.  An Eligible Employee who becomes a Participant shall remain a Participant until the time that the Participant (or his or her Beneficiary) has received all of the benefits to which he or she is entitled under the terms of the Plan.  

2.16"Participant's Account" means the individual account(s) maintained for a Participant by the Plan Administrator in accordance with the terms of the Plan that shall consist of his or her Normal Distribution Subaccount and/or Deferral Distribution Subaccount, as applicable.  Such an account is a bookkeeping record of all amounts deferred by a Participant, and any investment gains or losses allocated to such account as provided in the Plan, for purposes of determining the amount of benefits payable to a Participant under the Plan.

2.17"Plan" means the Alexandria Real Estate Equities, Inc. 2000 Venture Investment Deferred Compensation Plan, as amended from time to time.

2.18"Plan Administrator" means the Board or a committee or an individual selected by the Board to control and manage the operation and administration of the Plan.

2.19"Plan Year" means the calendar year beginning on January 1 and ending on December 31.  The first Plan Year of the Plan shall commence on January 1, 2001 and end on December 31, 2001.

2.20"Termination of Service" means severance of the Participant's employment relationship with the Company and any other Affiliate, including, but not limited to, such severance due to Total Disability, death or retirement.  For purposes of this definition, the employment relationship is considered to continue during any period during which the individual is on an approved leave of absence, whether paid or unpaid. 

2.21"Total Disability" means any Termination of Service during the life of a Participant by reason of a Participant's total and permanent disability, as determined by the Plan Administrator in its sole and absolute discretion.  A Participant who applies and qualifies for disability benefits under any long-term disability plan or policy provided by the Company or an Affiliate ("LTD Plan") shall qualify for Total Disability under this Plan.  A Participant who fails to qualify for disability benefits under a LTD Plan (whether or not the Participant makes application for disability benefits thereunder) shall not be deemed to have a Total Disability under this Plan unless the Plan Administrator otherwise determines, based upon the opinion of a qualified physician or medical clinic selected by the Plan Administrator, that a condition of total and permanent disability exists.

2.22"Venture Investment" means a [   REDACTED                                                

                                                                                                                                                                                              

                                                                                                                                                                                                

                                                                                                    ]

2.23"Venture Investment Company" means a [     REDACTED                                

                                               ]

ARTICLE 3

Deferrals

3.1Bonus Deferrals.  Each Eligible Employee who is notified of his or her eligibility to participate in the Plan on or after the Effective Date may begin to defer a Bonus under the Plan at the beginning of the first Plan Year (or such earlier date established by the Plan Administrator and announced to the Eligible Employee) commencing after the date the Eligible Employee completes and signs an Enrollment Agreement and returns such agreement to the Plan Administrator; provided, however, that such completion and return of the Enrollment Agreement to the Plan Administrator, if it does not occur prior to the commencement of the Plan Year with respect to which the Bonus is awarded, must occur at a time that the amount of the Bonus remains substantially uncertain, such time to be established by the Plan Administrator and communicated to the Eligible Employee.

An Eligible Employee who did not become a Participant in accordance with the terms of the preceding paragraph may begin to defer a Bonus under the Plan effective as of the beginning of any Plan Year following the Plan Year with respect to which he or she was first notified of his or her eligibility to participate in the Plan by completing and signing an Enrollment Agreement and returning such agreement to the Plan Administrator prior to the beginning of the Plan Year, or such earlier or later date established by the Plan Administrator and announced to the Eligible Employee, in which deferral of a Bonus is intended to commence; provided, however, that such completion and return of the Enrollment Agreement to the Plan Administrator, if it does not occur prior the commencement of the Plan Year with respect to which the Bonus is awarded, must occur at a time that the amount of the Bonus remains substantially uncertain, such time to be established by the Plan Administrator and communicated to the Eligible Employee.

A Participant's election to defer a Bonus shall only be effective for one Plan Year.  Therefore, an Eligible Employee must complete and sign an Enrollment Agreement and return such agreement to the Plan Administrator with respect to each Plan Year, as provided above.

3.2Deferral Amounts.  An Eligible Employee electing to participate in the Plan shall elect a Plan Year Deferral Amount of (i) a dollar amount of at least $10,000, or (ii) a percentage (in whole percentages) of his or her Bonus that would result in a Deferral Amount of at least $10,000 for the Plan Year.  The maximum percentage of a Participant's Bonus that may be deferred shall be one hundred percent (100%).

3.3Company to Retain Deferral Amounts; Unsecured Promise by Company.  All Deferral Amounts shall be deducted from Participants' Bonuses and held by the Company in its general assets.  All amounts under the Plan, including all deferrals and the amount of any investment gains or losses in respect of deemed investments pursuant to Section 4.2, shall remain (until made available to the Participant or Beneficiary) the property of the Company.  Benefits under the Plan represent an unfunded, unsecured promise by the Company to pay such benefits to the Participants when due.  Accordingly, a Participant has no greater right to any of the Company's general assets than the general creditors of the Company in the event that the Company shall become bankrupt or financially insolvent. 

3.4Changes in Deferrals.  A Participant may not change, amend or modify an Enrollment Agreement Deferral Amount election during the Plan Year, except if such change is permitted by the Plan Administrator and is made at a time that the amount of the Bonus remains substantially uncertain, such time to be established by the Plan Administrator and communicated to the Participant.

3.5Administrative Rules.  The Plan Administrator has the power to establish rules and from time to time to modify or change such rules governing the manner and method by which deferrals of a Participant's Bonus may be (i) changed, suspended or terminated or (ii) limited by the imposition of a minimum or maximum amount of deferral of Bonus.

3.6Deferral Distribution Subaccounts.  A Participant may make an irrevocable election on his or her Enrollment Agreement to designate a percentage of his or her Deferral Amount for the Plan Year to which the Enrollment Agreement relates to be placed in his or her Deferral Distribution Subaccount.  A previously scheduled deferral distribution shall become null and void upon a Participant's Termination of Service.

ARTICLE 4

Participant's Accounts and Plan Investments

4.1Timing of Credits to Subaccounts.  The amount by which a Bonus is deferred pursuant to Article 3 shall be credited by the Company to the Participant's Normal Distribution Subaccount or Deferral Distribution Subaccount, as applicable.

4.2Deemed Investments.  [REDACTED                                                    

                                                                                          ] determined by the Company, in the Company's sole and absolute discretion each Plan Year.  Participants who have made Bonus deferrals under the Plan in respect of a Plan Year will be deemed to have such Bonus deferral invested in Venture Investments in an aggregate amount that shall be limited to [REDACTED       

                                                                                                                           ] for such Plan Year.  [REDACTED

                                                                                                                                                         

                                                                                                                                                                                               

                                                                                                                                                                                                    

                                      ]

4.3Valuations.  A Participant's Account shall be valued annually [REDACTED

                                                                                                                                                                                                     

                                    ]  The value of the Participant's Account shall be its value as of the most recent valuation date, increased by any subsequent Deferral Amounts and decreased by any subsequent distributions.  Such valuation shall be communicated in writing to each Participant not later than April 15th following each Plan Year.

ARTICLE 5

Beneficiaries

The Participant's Enrollment Agreement shall designate the Beneficiary who is to receive a distribution of the vested value of a Participant's Account in the event of such Participant's death.  Any such designation, change or cancellation shall not be effective until received by the Plan Administrator, or its designee.  If the Participant has not properly designated a Beneficiary, if for any reason such designation shall not be legally effective, or if said designated Beneficiary shall predecease the Participant, then the Participant's estate shall be treated as the Beneficiary.  A Participant may change his or her Beneficiary designation at any time by amending the Participant's Enrollment Agreement.

ARTICLE 6

Distributions and Deferrals

6.1Distributions. Except as otherwise provided in Section 6.3, distributions under the Plan will occur only following the Distribution Event with respect to a Venture Investment.  The precise timing of a distribution pursuant to the Plan following a Distribution Event will be determined by the Company, in its sole and absolute discretion, which determination may take into account market conditions and such other considerations as the Company may decide.  Distributions under the Plan will be made in cash lump sums. 

6.2Normal Distributions.  Unless otherwise elected by the Participant in accordance with Section 6.3, all distributions under the Plan with respect to Venture Investments will be paid to Participants in accordance with Section 6.1.

6.3Deferral Distributions.  Notwithstanding the provisions of Section 6.2, a Participant may make an irrevocable election to defer all or a portion of each distribution under the Plan through the Participant's Deferral Distribution Subaccount on a form approved by the Plan Administrator.  Amounts allocated to the Participant's Deferral Distribution Subaccount will not be paid to the Participant following a Distribution Event but instead will be deferred pursuant to the Company's 2000 Deferred Compensation Plan, subject to the terms and conditions of such Plan.

ARTICLE 7

Benefits on Account of Termination of Service or Death

A Participant (or such Participant's Beneficiary in the event of the Participant's death) shall automatically receive a cash lump sum distribution of such Participant's Account in accordance with Section 6.1 following each Distribution Event.  No further deferral of such amounts shall be permitted pursuant to Section 6.3.

ARTICLE 8

Administration

8.1Plan Administrator.  The Plan Administrator shall be a committee comprised of the Chief Executive Officer and the Chief Financial Officer of the Company.  The Plan Administrator shall have the authority to control and manage the operation and administration of the Plan.  Administrative concerns of the Plan include, but are not limited to, the enrollment of Eligible Employees as Participants, the maintenance of all records, and the establishment of rules and procedures for the operation of the Plan.  

Individuals serving on the committee as Plan Administrator shall be eligible to participate in the Plan while administering the Plan, but a member of such committee shall not act upon any matter which relates solely to such member's or individual's interest in the Plan as a Participant.  The Plan Administrator may allocate and delegate some or all of its responsibilities described in this Article 9.

8.2Claims, Inquiries and Appeals.

(a)Any application or request for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted to the Plan Administrator at:

Alexandria Real Estate Equities, Inc.

135 N. Los Robles Avenue, Suite 250

Pasadena, CA 91101

(b)If any application for benefits is denied in whole or in part, the Plan Administrator must notify the applicant, in writing, of the denial of the application, and of the applicant's right to review the denial.  The written notice of denial will be set forth in a manner designed to be understood by the individual, and will include specific reasons for the denial, specific references to the Plan provision upon which the denial is based, a description of any information or material that the Plan Administrator needs to complete the review and an explanation of the Plan's review procedure.

This written notice will be given to the individual within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan Administrator will have up to an additional ninety (90) days for processing the application.  If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial 90-day period.

This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application.  If written notice of denial of the application for benefits is not furnished within the specified time, the application shall be deemed to be denied.  The applicant will then be permitted to appeal the denial in accordance with the review procedure described below.

(c)Any person (or that person's authorized representative) for whom an application for benefits is denied (or deemed denied), in whole or in part, may appeal the denial by submitting a request for a review to the Plan Administrator within 60 days after the application is denied (or deemed denied).  The Plan Administrator will give the applicant (or his or her representative) an opportunity to review pertinent documents in preparing a request for a review.  A request for a review shall be in writing and shall be addressed to the Plan Administrator at:  

Alexandria Real Estate Equities, Inc.

135 N. Los Robles Avenue, Suite 250

Pasadena, CA 91101

A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent.  The Plan Administrator may require the applicant to submit additional facts, documents or other material as it may find necessary or appropriate in making its review.

(d)The Plan Administrator will act on each request for review within 60 days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional 60 days) for processing the request for a review.  If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial 60-day period.  The Plan Administrator will give prompt, written notice of its decision to the applicant.  In the event that the Plan Administrator confirms the denial of the application for benefits in whole or in part, the notice will outline, in a manner calculated to be understood by the applicant, the specific Plan provisions upon which the decision is based.  If written notice of the Plan Administrator's decision is not given to the applicant within the time prescribed in this Subsection (d), the application will be deemed denied on review.

(e)The Plan Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims.  The Plan Administrator may require an applicant who wishes to submit additional information in connection with an appeal from the denial (or deemed denial) of benefits to do so at the applicant's own expense.

(f)No legal action for benefits under the Plan pursuant to Section 9.12 hereof may be brought until the claimant (i) has submitted a written application for benefits in accordance with Section 8.2(a) above, (ii) has been notified by the Plan Administrator that the application is denied (or the application is deemed denied due to the Plan Administrator's failure to act on it within the established time period), (iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 8.2(c) above and (iv) has been notified in writing that the Plan Administrator has denied the appeal (or the appeal is deemed to be denied due to the Plan Administrator's failure to take any action on the claim within the time prescribed by Section 8.2(d) above).

8.3Discretionary Authority of Plan Administrator.  The Plan Administrator shall be vested with sole discretionary authority (i) to construe and interpret the Plan and a Participant's Enrollment Agreement (collectively referred to as "Documents"), their terms, and any rules and regulations promulgated thereunder, including but not limited to resolving ambiguities, inconsistencies and omissions, (ii) to construe and interpret the Federal and state laws and regulations that relate to the Documents, (iii) to decide all factual questions arising in connection with the Documents, and (iv) to decide all other questions arising in connection with the Documents, including but not limited to determinations of eligibility, entitlement to benefits, and vesting.  All findings of the Plan Administrator shall be final and shall be binding and conclusive upon all persons having any interest in the Plan.

8.4Costs and Expenses of Plan.  All costs and expenses related to the operation and administration of the Plan shall be paid by the Company except commissions on the sales of securities in respect of Distribution Events, which will be paid on pro rata basis by each Participant at the time of the Distribution Event, based on the Participant's Account balance in respect of the relevant Venture Investment at the time of such Distribution Event. 

ARTICLE 9

Miscellaneous

9.1Amendment of Plan.  The Company reserves the right to amend any provisions of the Plan at any time upon an action by the Board to the extent that it may deem advisable without the consent of the Participant or any Beneficiary; provided, however, that no such amendment shall impair the rights of any Participant or Beneficiary with respect to either any Bonuses deferred before such amendment or the deemed investment in Venture Investments of any deferred Bonus amounts credited to a Participant's Account before such amendment.

9.2Termination of Plan.  The Company and each Affiliate adopting the Plan with respect to that Affiliate's Eligible Employees reserves the right to terminate the Plan (or terminate the Plan with respect to that Affiliate's Eligible Employees) at any time upon an action by the Board; provided, however, that no such termination shall impair the rights of any Participant or Beneficiary with respect to either any Bonuses deferred before such termination or the deemed investment in Venture Investments of any deferred Bonus amounts credited to a Participant's Account before such termination.  Upon termination of the Plan, all deferrals of future Bonuses shall terminate immediately and the Participant's full Bonus on a non-deferred basis will be thereupon restored.  Distribution of any benefits to a Participant shall commence only upon the occurrence of a Distribution Event pursuant to which distribution is permitted or required by the Plan and such Participant's Enrollment Agreement.

9.3Plan Rules.  The Plan Administrator may at any time make rules as it determines necessary regarding the administration of the Plan which are not inconsistent with the Plan.

9.4Outside Consultants.  The Plan Administrator may, from time to time, hire outside consultants, accountants, actuaries, legal counsel, or recordkeepers to perform such tasks as the Plan Administrator may from time to time determine.

9.5No Assignment of Benefits.  No benefits under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer (otherwise than by will or the laws of descent and distribution), assignment, pledge, encumbrance, attachment or garnishment.  The provisions of the Plan shall be binding upon and inure to the benefit of the Company and Participants and their respective successors, heirs, personal representatives, executors, administrators, and legatees.  The Company's obligations under this Plan are not assignable or transferable except to (i) a corporation that acquires all or substantially all of the Company's assets or (ii) any corporation into which the Company may be merged or consolidated.

9.6Absence of Other Agreements; Conflicts.  The Plan, the Participant's Enrollment Agreement, and any subsequently adopted amendment to any of these documents, shall constitute the entire agreement between the Company and such Participant regarding the Plan.  No oral statement regarding the Plan may be relied upon by the Participant.  If there are any conflicts between the terms of the Plan and a Participant's Enrollment Agreement, the terms of the Plan shall control.

9.7No Employment Rights.  The terms and conditions of the Plan shall not be deemed to confer upon a Participant any right to continue in the employ of the Company or any Affiliate or to interfere with the right of the Company or any Affiliate to discipline or discharge the Participant at any time.  Such employment is hereby acknowledged to be an "at will" employment relationship that can be terminated at any time for any reason, with or without cause, unless expressly provided in a written employment agreement or expressly provided by law.

9.8Debt Offsets.  If a Participant becomes entitled to a distribution of benefits under the Plan, and if at such time the Participant has outstanding any debt, obligation, or other liability representing an amount owing to the Company or an Affiliate, then the Company may offset such amount owed to it or an Affiliate against the amount of benefits otherwise distributable.  Such determination shall be made by the Plan Administrator.

9.9Withholding.  The Plan Administrator shall have the authority to withhold from a distribution to a Participant or Beneficiary or from a Participant's Account any amount needed to satisfy applicable income or employment withholding tax obligations with respect to such distribution of a Participant's Account and may also arrange with the Participant to allow the Participant to make payment to the Company to satisfy such obligations.  Each Participant and Beneficiary, however, shall be responsible for the payment of all individual tax liabilities relating to any such benefits.

9.10Unfunded Nature of Plan.  The Plan is intended to constitute an "unfunded" plan of deferred compensation for Participants.  Benefits payable hereunder shall be payable out of the general assets of the Company, and no segregation of any assets whatsoever for such benefits shall be made.  With respect to any payments not yet made to a Participant, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.

9.11Savings Clause.  If any provision of this Plan is held unenforceable, the remainder of the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan.

9.12Arbitration.  Any controversy or claim arising out of or relating to this Plan shall be settled by binding arbitration in Los Angeles, California, in accordance with the Arbitration Rules and Procedures of the Judicial Arbitration and Mediation Service ("JAMS").  The parties shall seek to agree upon appointment of the arbitrator and the arbitration procedures.  If the parties are unable to reach such agreement, a single arbitrator shall be appointed pursuant to the JAMS Arbitration Rules and Procedures, and the arbitrator shall determine the arbitration procedures.  Any award pursuant to such arbitration shall be included in a written decision which shall state the legal and factual reasons upon which the award was based, including all the elements involved in the calculation of any award of damages.  Any such award shall be deemed final and binding and may be entered and enforced in any state or federal court of competent jurisdiction.  The arbitrator shall interpret the Plan in accordance with the laws of California to the extent not preempted by ERISA.  Each party shall pay its own fees and expenses incurred in any arbitration under this Plan, but the expenses of the arbitration shall be paid by the Company.

9.13Headings.  Headings are inserted in this Plan for convenience of reference only and are to be ignored in the construction of the provisions of the Plan.

9.14Rules of Gender and Number.  All pronouns and adjectives shall be deemed to refer to the masculine, feminine, or neuter gender, as the identity of the person or persons may require.  As the context may require, the singular may be read as the plural and the plural as the singular.  

9.15Notices.  Any notice or filing required or permitted to be given to the Plan Administrator under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to the Plan Administrator or to such representatives as the Plan Administrator may designate from time to time.  Such notice shall be deemed given as to the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

9.16Governing Law.  This Plan shall be construed under the laws of the State of California, except to the extent that the laws of such state are preempted by ERISA.

In Witness Whereof, the Plan is hereby adopted by a duly authorized officer of Alexandria Real Estate Equities, Inc. on this 29th day of December, 2000.

Alexandria Real Estate Equities, Inc.

By: /s/ Joel S. Marcus

Name: Joel S. Marcus

Title:Chief Executive Officer

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