Document:

Exhibit
10.3

 

 

 

SECOND
AMENDED AND RESTATED SECURED TERM LOAN AGREEMENT

BY AND
AMONG

NEW PLAN
EXCEL REALTY TRUST, INC.,

THE
LENDERS PARTY HERETO,

BANK OF
AMERICA, N.A.,

AS ADMINISTRATIVE AGENT, AND

BANC OF
AMERICA SECURITIES LLC AND

BNY CAPITAL MARKETS, INC,

AS JOINT LEAD ARRANGERS

BANC OF
AMERICA SECURITIES LLC,

AS SOLE BOOK MANAGER,

SUNTRUST
BANK,

AS DOCUMENTATION AGENT,

AND

THE BANK OF NEW YORK,

AS SYNDICATION AGENT

DATED AS
OF AUGUST 25, 2006

 

 

 

TABLE OF CONTENTS

	
  1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  6

  
	
   

  	
   

  	
  1.1

  	
   

  	
  Defined Terms

  	
   

  	
  6

  
	
   

  	
   

  	
  1.2

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  27

  
	
   

  	
   

  	
  1.3

  	
   

  	
  Accounting Terms

  	
   

  	
  28

  
	
   

  	
   

  	
  1.4

  	
   

  	
  Rounding

  	
   

  	
  28

  
	
   

  	
   

  	
  1.5

  	
   

  	
  Times of Day

  	
   

  	
  28

  
	
   

  	
   

  	
  1.6

  	
   

  	
  Clarification Concerning Calculations for Joint
  Ventures

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  AMOUNT AND TERMS OF LOANS

  	
   

  	
  28

  
	
   

  	
   

  	
  2.1

  	
   

  	
  Loans

  	
   

  	
  28

  
	
   

  	
   

  	
  2.2

  	
   

  	
  Notes

  	
   

  	
  29

  
	
   

  	
   

  	
  2.3

  	
   

  	
  Procedure for Loan Borrowings

  	
   

  	
  29

  
	
   

  	
   

  	
  2.4

  	
   

  	
  Intentionally Omitted

  	
   

  	
  30

  
	
   

  	
   

  	
  2.5

  	
   

  	
  Intentionally Omitted

  	
   

  	
  30

  
	
   

  	
   

  	
  2.6

  	
   

  	
  Repayment of Loans; Evidence of Debt

  	
   

  	
  30

  
	
   

  	
   

  	
  2.7

  	
   

  	
  Prepayments of the Loans

  	
   

  	
  30

  
	
   

  	
   

  	
  2.8

  	
   

  	
  Conversions

  	
   

  	
  31

  
	
   

  	
   

  	
  2.9

  	
   

  	
  Interest Rate and Payment Dates

  	
   

  	
  31

  
	
   

  	
   

  	
  2.10

  	
   

  	
  Substituted Interest Rate

  	
   

  	
  32

  
	
   

  	
   

  	
  2.11

  	
   

  	
  Taxes; Net Payments

  	
   

  	
  33

  
	
   

  	
   

  	
  2.12

  	
   

  	
  Illegality

  	
   

  	
  33

  
	
   

  	
   

  	
  2.13

  	
   

  	
  Increased Costs

  	
   

  	
  33

  
	
   

  	
   

  	
  2.14

  	
   

  	
  Indemnification for Break Funding Losses

  	
   

  	
  34

  
	
   

  	
   

  	
  2.15

  	
   

  	
  Use of Proceeds

  	
   

  	
  35

  
	
   

  	
   

  	
  2.16

  	
   

  	
  Capital Adequacy

  	
   

  	
  35

  
	
   

  	
   

  	
  2.17

  	
   

  	
  Administrative Agent’s Records

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  FEES; PAYMENTS

  	
   

  	
  35

  
	
   

  	
   

  	
  3.1

  	
   

  	
  Fees

  	
   

  	
  35

  
	
   

  	
   

  	
  3.2

  	
   

  	
  Payments; Application of Payments

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  36

  
	
   

  	
   

  	
  4.1

  	
   

  	
  Existence and Power

  	
   

  	
  36

  
	
   

  	
   

  	
  4.2

  	
   

  	
  Authority

  	
   

  	
  37

  
	
   

  	
   

  	
  4.3

  	
   

  	
  Binding Agreement

  	
   

  	
  37

  
	
   

  	
   

  	
  4.4

  	
   

  	
  Subsidiaries; DownREIT Partnerships

  	
   

  	
  37

  
	
   

  	
   

  	
  4.5

  	
   

  	
  Litigation

  	
   

  	
  37

  
	
   

  	
   

  	
  4.6

  	
   

  	
  Required Consents

  	
   

  	
  38

  
	
   

  	
   

  	
  4.7

  	
   

  	
  No Conflicting Agreements

  	
   

  	
  38

  
	
   

  	
   

  	
  4.8

  	
   

  	
  Compliance with Applicable Laws

  	
   

  	
  38

  
	
   

  	
   

  	
  4.9

  	
   

  	
  Taxes

  	
   

  	
  38

  
	
   

  	
   

  	
  4.10

  	
   

  	
  Governmental Regulations.

  	
   

  	
  38

  
	
   

  	
   

  	
  4.11

  	
   

  	
  Federal Reserve Regulations; Use of Loan Proceeds

  	
   

  	
  38

  
	
   

  	
   

  	
  4.12

  	
   

  	
  Plans; Multiemployer Plans

  	
   

  	
  38

  
	
   

  	
   

  	
  4.13

  	
   

  	
  Financial Statements

  	
   

  	
  39

  
	
   

  	
   

  	
  4.14

  	
   

  	
  Property

  	
   

  	
  39

  
	
   

  	
   

  	
  4.15

  	
   

  	
  Franchises, Intellectual Property, Etc

  	
   

  	
  39

  

 

 i
 

 

 

	
  

  	
   

  	
  4.16

  	
   

  	
  Environmental Matters

  	
   

  	
  39

  
	
   

  	
   

  	
  4.17

  	
   

  	
  Labor Relations

  	
   

  	
  40

  
	
   

  	
   

  	
  4.18

  	
   

  	
  Setoff

  	
   

  	
  40

  
	
   

  	
   

  	
  4.19

  	
   

  	
  Solvency

  	
   

  	
  40

  
	
   

  	
   

  	
  4.20

  	
   

  	
  REIT Status

  	
   

  	
  41

  
	
   

  	
   

  	
  4.21

  	
   

  	
  List of Unencumbered Assets

  	
   

  	
  41

  
	
   

  	
   

  	
  4.22

  	
   

  	
  Operation of Business

  	
   

  	
  41

  
	
   

  	
   

  	
  4.23

  	
   

  	
  No Misrepresentation

  	
   

  	
  41

  
	
   

  	
   

  	
  4.24

  	
   

  	
  Taxpayer ID

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  CONDITIONS TO EFFECTIVENESS OF THIS AGREEMENT

  	
   

  	
  41

  
	
   

  	
   

  	
  5.1

  	
   

  	
  Evidence of Action

  	
   

  	
  41

  
	
   

  	
   

  	
  5.2

  	
   

  	
  This Agreement

  	
   

  	
  42

  
	
   

  	
   

  	
  5.3

  	
   

  	
  Notes

  	
   

  	
  42

  
	
   

  	
   

  	
  5.4

  	
   

  	
  Guaranty

  	
   

  	
  42

  
	
   

  	
   

  	
  5.5

  	
   

  	
  Security Documents

  	
   

  	
  42

  
	
   

  	
   

  	
  5.6

  	
   

  	
  Instruction Letter

  	
   

  	
  42

  
	
   

  	
   

  	
  5.7

  	
   

  	
  Litigation

  	
   

  	
  42

  
	
   

  	
   

  	
  5.8

  	
   

  	
  Opinion of Counsel to the Borrower

  	
   

  	
  43

  
	
   

  	
   

  	
  5.9

  	
   

  	
  Fees

  	
   

  	
  43

  
	
   

  	
   

  	
  5.10

  	
   

  	
  Fees and Expenses of Special Counsel

  	
   

  	
  43

  
	
   

  	
   

  	
  5.11

  	
   

  	
  Compliance

  	
   

  	
  43

  
	
   

  	
   

  	
  5.12

  	
   

  	
  Loan Closing

  	
   

  	
  43

  
	
   

  	
   

  	
  5.13

  	
   

  	
  Documentation and Proceedings

  	
   

  	
  43

  
	
   

  	
   

  	
  5.14

  	
   

  	
  Required Acts and Conditions

  	
   

  	
  43

  
	
   

  	
   

  	
  5.15

  	
   

  	
  Approval of Special Counsel

  	
   

  	
  43

  
	
   

  	
   

  	
  5.16

  	
   

  	
  Other Documents

  	
   

  	
  43

  
	
   

  	
   

  	
  5.17

  	
   

  	
  Loan to Value

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  COLLATERAL SECURITY; RESTRICTED INTERESTS

  	
   

  	
  43

  
	
   

  	
   

  	
  6.1

  	
   

  	
  Collateral

  	
   

  	
  43

  
	
   

  	
   

  	
  6.2

  	
   

  	
  Substitution or Addition of Restricted Interests

  	
   

  	
  44

  
	
   

  	
   

  	
  6.3

  	
   

  	
  Sale of a Subject Property

  	
   

  	
  45

  
	
   

  	
   

  	
  6.4

  	
   

  	
  Release of Collateral Interest

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  46

  
	
   

  	
   

  	
  7.1

  	
   

  	
  Financial Statements

  	
   

  	
  46

  
	
   

  	
   

  	
  7.2

  	
   

  	
  Certificates; Other Information

  	
   

  	
  47

  
	
   

  	
   

  	
  7.3

  	
   

  	
  Legal Existence

  	
   

  	
  50

  
	
   

  	
   

  	
  7.4

  	
   

  	
  Taxes

  	
   

  	
  50

  
	
   

  	
   

  	
  7.5

  	
   

  	
  Insurance

  	
   

  	
  50

  
	
   

  	
   

  	
  7.6

  	
   

  	
  Payment of Indebtedness and Performance of
  Obligations

  	
   

  	
  51

  
	
   

  	
   

  	
  7.7

  	
   

  	
  Maintenance of Property; Environmental Investigations

  	
   

  	
  51

  
	
   

  	
   

  	
  7.8

  	
   

  	
  Observance of Legal Requirements

  	
   

  	
  51

  
	
   

  	
   

  	
  7.9

  	
   

  	
  Inspection of Property; Books and Records;
  Discussions

  	
   

  	
  51

  
	
   

  	
   

  	
  7.10

  	
   

  	
  Licenses, Intellectual Property

  	
   

  	
  51

  
	
   

  	
   

  	
  7.11

  	
   

  	
  Additional Guarantors

  	
   

  	
  52

  
	
   

  	
   

  	
  7.12

  	
   

  	
  REIT Status; Operation of Business

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 ii
 

 

 

	
  8.

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  52

  
	
   

  	
   

  	
  8.1

  	
   

  	
  Liens

  	
   

  	
  52

  
	
   

  	
   

  	
  8.2

  	
   

  	
  Merger, Consolidation and Certain Dispositions of
  Property

  	
   

  	
  54

  
	
   

  	
   

  	
  8.3

  	
   

  	
  Investments, Loans, Etc

  	
   

  	
  57

  
	
   

  	
   

  	
  8.4

  	
   

  	
  Business Changes

  	
   

  	
  59

  
	
   

  	
   

  	
  8.5

  	
   

  	
  Amendments to Organizational Documents

  	
   

  	
  59

  
	
   

  	
   

  	
  8.6

  	
   

  	
  Anti-Terrorism Laws; FCPA

  	
   

  	
  59

  
	
   

  	
   

  	
  8.7

  	
   

  	
  Sale and Leaseback

  	
   

  	
  59

  
	
   

  	
   

  	
  8.8

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  59

  
	
   

  	
   

  	
  8.9

  	
   

  	
  Issuance of Additional Capital Stock by Subsidiary
  Guarantors

  	
   

  	
  59

  
	
   

  	
   

  	
  8.10

  	
   

  	
  Hedging Agreements

  	
   

  	
  59

  
	
   

  	
   

  	
  8.11

  	
   

  	
  Restricted Payments

  	
   

  	
  59

  
	
   

  	
   

  	
  8.13

  	
   

  	
  Fixed Charge Coverage Ratio

  	
   

  	
  60

  
	
   

  	
   

  	
  8.14

  	
   

  	
  Minimum Tangible Net Worth

  	
   

  	
  60

  
	
   

  	
   

  	
  8.15

  	
   

  	
  Total Indebtedness to Total Assets; Secured
  Indebtedness to Total Assets

  	
   

  	
  60

  
	
   

  	
   

  	
  8.16

  	
   

  	
  Indebtedness to Unencumbered Assets Ratio

  	
   

  	
  60

  
	
   

  	
   

  	
  8.17

  	
   

  	
  Maximum Book Value of Ancillary Assets

  	
   

  	
  60

  
	
   

  	
   

  	
  8.18

  	
   

  	
  Development Activity

  	
   

  	
  61

  
	
   

  	
   

  	
  8.19

  	
   

  	
  Debt Service Coverage

  	
   

  	
  61

  
	
   

  	
   

  	
  8.20

  	
   

  	
  Restricted Interests Ratio

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  DEFAULT

  	
   

  	
  61

  
	
   

  	
   

  	
  9.1

  	
   

  	
  Events of Default

  	
   

  	
  61

  
	
   

  	
   

  	
  9.2

  	
   

  	
  Default under Subject Property Loan Documents

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  THE AGENT

  	
   

  	
  64

  
	
   

  	
   

  	
  10.1

  	
   

  	
  Appointment and Authority

  	
   

  	
  64

  
	
   

  	
   

  	
  10.2

  	
   

  	
  Rights as a Lender

  	
   

  	
  64

  
	
   

  	
   

  	
  10.3

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  64

  
	
   

  	
   

  	
  10.4

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  65

  
	
   

  	
   

  	
  10.5

  	
   

  	
  Notice of Default

  	
   

  	
  65

  
	
   

  	
   

  	
  10.6

  	
   

  	
  Delegation of Duties

  	
   

  	
  65

  
	
   

  	
   

  	
  10.7

  	
   

  	
  Indemnification

  	
   

  	
  65

  
	
   

  	
   

  	
  10.8

  	
   

  	
  Successor Administrative Agent

  	
   

  	
  66

  
	
   

  	
   

  	
  10.9

  	
   

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
   

  	
  66

  
	
   

  	
   

  	
  10.10

  	
   

  	
  No Other Duties, Etc

  	
   

  	
  67

  
	
   

  	
   

  	
  10.11

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  67

  
	
   

  	
   

  	
  10.12

  	
   

  	
  Collateral and Guaranty Matters

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  OTHER PROVISIONS

  	
   

  	
  68

  
	
   

  	
   

  	
  11.1

  	
   

  	
  Amendments and Waivers

  	
   

  	
  68

  
	
   

  	
   

  	
  11.2

  	
   

  	
  Notices

  	
   

  	
  68

  
	
   

  	
   

  	
  11.3

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  70

  
	
   

  	
   

  	
  11.4

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  70

  
	
   

  	
   

  	
  11.5

  	
   

  	
  Payment of Expenses and Taxes

  	
   

  	
  70

  
	
   

  	
   

  	
  11.6

  	
   

  	
  Lending Offices

  	
   

  	
  71

  
	
   

  	
   

  	
  11.7

  	
   

  	
  Successors and Assigns

  	
   

  	
  71

  
	
   

  	
   

  	
  11.8

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  74

  
	
   

  	
   

  	
  11.9

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  74

  
	
   

  	
   

  	
  11.10

  	
   

  	
  Adjustments; Set-off

  	
   

  	
  74

  

 

 iii
 

 

 

	
  

  	
   

  	
  11.11

  	
   

  	
  Lenders’ Representations

  	
   

  	
  75

  
	
   

  	
   

  	
  11.12

  	
   

  	
  Indemnity

  	
   

  	
  75

  
	
   

  	
   

  	
  11.13

  	
   

  	
  Governing Law

  	
   

  	
  75

  
	
   

  	
   

  	
  11.14

  	
   

  	
  Headings Descriptive

  	
   

  	
  76

  
	
   

  	
   

  	
  11.16

  	
   

  	
  Confidentiality

  	
   

  	
  76

  
	
   

  	
   

  	
  11.17

  	
   

  	
  Consent to Jurisdiction

  	
   

  	
  76

  
	
   

  	
   

  	
  11.18

  	
   

  	
  Service of Process

  	
   

  	
  76

  
	
   

  	
   

  	
  11.19

  	
   

  	
  No Limitation on Service or Suit

  	
   

  	
  77

  
	
   

  	
   

  	
  11.20

  	
   

  	
  WAIVER OF TRIAL BY JURY

  	
   

  	
  77

  
	
   

  	
   

  	
  11.21

  	
   

  	
  Termination

  	
   

  	
  77

  
	
   

  	
   

  	
  11.22

  	
   

  	
  Replacement Notes

  	
   

  	
  77

  
	
   

  	
   

  	
  11.23

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  77

  
	
   

  	
   

  	
  11.24

  	
   

  	
  Replacement of Lenders

  	
   

  	
  77

  
	
   

  	
   

  	
  11.25

  	
   

  	
  No Advisory or Fiduciary Relationships

  	
   

  	
  78

  

 

 iv

 

 

LIST OF EXHIBITS
AND SCHEDULES

	
  EXHIBITS:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  —

  	
   

  	
  Assignment and Assumption

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Commitments and Domestic LIBOR Lending Offices

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C-1

  	
   

  	
  —

  	
   

  	
  Equity Interests Owners and Equity Interests Properties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C-2

  	
   

  	
  —

  	
   

  	
  Distributions Interests Owners and Distributions
  Interests Properties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C-3

  	
   

  	
  —

  	
   

  	
  Additional Interests Owners and Additional Interests
  Properties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Compliance Certificate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  —

  	
   

  	
  Instruction Letter

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit F

  	
   

  	
  —

  	
   

  	
  Guaranty

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit G

  	
   

  	
  —

  	
   

  	
  [Intentionally Omitted]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit H

  	
   

  	
  —

  	
   

  	
  Note

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit I

  	
   

  	
  —

  	
   

  	
  Secretary’s Certificate Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit J

  	
   

  	
  —

  	
   

  	
  Secretary’s Certificate Guarantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit K

  	
   

  	
  —

  	
   

  	
  Secretary’s Certificate Assignor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit L

  	
   

  	
  —

  	
   

  	
  [Intentionally Omitted]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit M

  	
   

  	
  —

  	
   

  	
  Form of Notice of Conversion

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1.1

  	
   

  	
  —

  	
   

  	
  Closing Date Approved Management Contracts

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 4.4

  	
   

  	
  —

  	
   

  	
  Subsidiaries (including Subsidiary Guarantors)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 4.5

  	
   

  	
  —

  	
   

  	
  Litigation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 4.12

  	
   

  	
  —

  	
   

  	
  Plans

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 4.21

  	
   

  	
  —

  	
   

  	
  List of Unencumbered Assets

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 11.2

  	
   

  	
  —

  	
   

  	
  Notice Addresses

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 11.7

  	
   

  	
  —

  	
   

  	
  Processing and Recordation Fees

  

 

 v

 

 

SECOND
AMENDED AND RESTATED SECURED TERM LOAN AGREEMENT, dated as of August 25, 2006,
by and among NEW PLAN EXCEL REALTY TRUST, INC., a Maryland corporation (the “Borrower”),
each lender party hereto or which becomes a “Lender” pursuant to the provisions
of Section 11.7 (each a “Lender” and, collectively, the “Lenders”), and BANK OF
AMERICA, N.A. (“Bank of America”), as administrative agent for the Lenders (in
such capacity, the “Administrative Agent”).

RECITALS

WHEREAS,
Borrower, Bank of America, as administrative agent and as a lender and certain
other lenders, entered into that certain First Amended and Restated Secured
Term Loan Agreement dated as of June 29, 2004, as amended by that certain First
Amendment to First Amended and Restated Secured Term Loan Agreement dated as of
July 19, 2005 (as the same may have been otherwise amended, restated,
supplemented or modified prior to the date hereof, the “Replaced Loan Agreement”);

WHEREAS,
Borrower has requested that the Lenders and Administrative Agent agree to amend
certain provisions of the Replaced Loan Agreement; and

WHEREAS,
in connection therewith, Administrative Agent, Borrower and the Lenders desire
to amend and restate the Replaced Loan Agreement in its entirety;

NOW,
THEREFORE, in consideration of the recitals herein and the mutual covenants
contained herein, the parties hereto hereby amend and restate the Replaced Loan
Agreement in its entirety as follows:

1.             DEFINITIONS.

1.1           Defined Terms.  As used in this Agreement, terms defined in
the preamble have the meanings therein indicated, and the following terms have
the following meanings:

“Account
Agreement”:  the Second Amended and
Restated Account Security, Pledge, Assignment and Control Agreement dated of
even date herewith among Borrower, the Administrative Agent, for the benefit of
the Lenders, and Bank of America, as depository bank with respect to the
payment of the Excess Funds to the Deposit Account, as the same may be
modified, amended or restated from time to time.

“Accountants”:  any of PricewaterhouseCoopers LLP; Deloitte
& Touche LLP; Ernst & Young LLP; KPMG LLP; or any successor to any of
the foregoing; or such other firm of certified public accountants selected by
the Borrower and satisfactory to the Administrative Agent.

“Account”:  that certain account maintained by Account
Bank, designated as account number 0013-9010-0211 and any replacement account
hereafter established by Borrower pursuant to the Account Agreement.

“Account
Bank”:  initially, Bank of America,
and any subsequent or replacement holder of the Account pursuant to the Account
Agreement.

“Acknowledgments”:  collectively, the Acknowledgments executed by
the Companies and the Subsidiaries of the Companies in favor of the
Administrative Agent, for the benefit of Lenders, as the same may be modified,
amended or restated from time to time.

“Additional
Interests”:  collectively, one
hundred percent (100%) of the Borrower’s direct or indirect ownership interests
in a Subject Property, other than interests constituting Collateral Interests.

“Additional
Interests Owners”:  collectively,
Borrower, the Subsidiaries of Borrower set forth on Exhibit C-3 and any
other Subsidiary of Borrower that becomes an Additional Interests Owner after
the date hereof pursuant to Section 6.2 hereof.

 6
 

 

“Additional
Interests Properties”:  collectively,
the Subject Properties owned by the Additional Interests Owners more
particularly described on Exhibit C-3 and any other Subject Property
owned by an Additional Interest Owner which becomes an Additional Interests
Property after the date hereof pursuant to Section 6.2.

“Additional
Interests Subsidiaries”: 
collectively, the Subsidiaries of Borrower that are Additional Interests
Owners.

“Adjusted
Consolidated Total Assets”: 
determined on a Consolidated basis in accordance with GAAP for Borrower
and its Subsidiaries, the sum (without duplication) of the following:

(a)           the Operating Property Value; plus

(b)           the book value of Land Assets,
Redevelopment Assets, and Notes Receivable of Borrower and its Subsidiaries (including,
without limitation, all capitalized costs incurred in connection therewith) on
the last day of the fiscal quarter just ended; plus

(c)           the aggregate amount of the unpledged
portion of (i) all unrestricted cash and marketable securities of Borrower and
its Subsidiaries (including, without limitation, Investments described in
Section 8.3(a) through (f)) plus (ii) all restricted cash held by any
Person serving as a “qualified intermediary” for purposes of an exchange
pursuant to Section 1031 of the Code on behalf of Borrower or any of its
Subsidiaries; plus

(d)           the book value of properties acquired
during the previous 12 months (until the one-year anniversary date for acquired
properties) and New Construction Assets valued at cost; plus

(e)           the Management Fee Value.

Adjusted
Consolidated Total Assets shall be calculated on a pro forma basis as if assets
acquired during the relevant period were owned as of the beginning of the
relevant period, and all assets disposed of during the relevant period were not
owned during any portion of the relevant period.

“Adjusted
Net Operating Income”:  for any
period, the aggregate amount of the Net Operating Income from each Unencumbered
Asset or Operating Property, as applicable, during such period, less the
Capital Expense Reserve for such Unencumbered Asset or Operating Property, as
applicable, during such period.

“Administrative
Agent’s Office”:  the Administrative
Agent’s address as set forth in Section 11.2, or such other address as the
Administrative Agent may from time to time notify to the Borrower and the
Lenders.

“Administrative
Questionnaire”:  an Administrative
Questionnaire in a form supplied by the Administrative Agent.

“Advance”:  a Prime Rate Loan or a LIBOR Loan, as the
case may be.

“Affected
Advance”:  as defined in Section
2.10.

“Affected
Principal Amount”:  in the event that
(a) the Borrower shall fail for any reason to borrow or convert into a LIBOR
Loan after it shall have notified the Administrative Agent of its intent to do
so (whether it shall have requested a LIBOR Loan on the Effective Date or
pursuant to Section 2.8), an amount equal to the principal amount of such LIBOR
Loan; (b) a LIBOR Loan shall terminate for any reason prior to the last day of
the Interest Period applicable thereto, an amount equal to the principal amount
of such LIBOR Loan; or (c) the Borrower shall prepay or repay all or any part
of the principal amount of a LIBOR Loan prior to the last day of the Interest
Period applicable thereto (including, without limitation, any mandatory
prepayment or a prepayment resulting from acceleration or illegality), an
amount equal to the principal amount of such LIBOR Loan so prepaid or repaid.

 7
 

 

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

“Agreement”:  this Second Amended and Restated Secured Term
Loan Agreement, as the same may be amended, supplemented or otherwise modified
from time to time.

“Agreement
Regarding Fees”:  that certain
Agreement Regarding Fees dated June 19, 2006 among Bank of America, Banc of
America Securities LLC and the Borrower.

“Ancillary
Assets”:  at any time (without
duplication), (a) all Real Property of the Borrower and its Subsidiaries which
is (i) a mortgage, (ii) a New Construction Asset, or (iii) any other Real
Property other than an open air shopping center or a single tenant retail
property, and (b) all Investments of the Borrower and its Subsidiaries of the
type described in Section 8.3(h) and (q), including, without limitation, all
Investments of the Borrower and its Subsidiaries in any FIN 46 Entities.

“Applicable
Lending Office”:  in respect of any
Lender, (a)in the case of such Lender’s Prime Rate Loans, its Domestic Lending
Office and (b) in the case of such Lender’s LIBOR Loans, its LIBOR Lending
Office.

“Applicable
Margin”:  with respect to the unpaid
principal balance of Prime Rate Loans or LIBOR Loans, at all times during which
the applicable Pricing Level set forth below is in effect, the respective
percentage set forth below next to such Pricing Level:

	
  Pricing Level

  	
   

  	
  LIBOR Loans

  	
   

  	
  Prime Rate Loans

  
	
  Pricing Level I

  	
   

  	
  0.400%

  	
   

  	
  0%

  
	
  Pricing Level II

  	
   

  	
  0.475%

  	
   

  	
  0%

  
	
  Pricing Level III

  	
   

  	
  0.550%

  	
   

  	
  0%

  
	
  Pricing Level IV

  	
   

  	
  0.750%

  	
   

  	
  0%

  
	
  Pricing Level V

  	
   

  	
  1.150%

  	
   

  	
  0.250%

  

 

Changes
in the Applicable Margin resulting from a change in a Pricing Level shall
become effective as of the opening of business upon the date of any change in
the Senior Debt Rating of the Borrower, as determined by S&P, Moody’s
and/or Fitch, as the case may be, which would affect the applicable Pricing
Level.

“Approved
Fund”:  means any Fund that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender.

“Approved
Management Contracts”:  those
contracts listed on Schedule 1.1 attached hereto and any other property
management contracts between the Borrower or one of its consolidated
Subsidiaries and a third party (a) in which the Borrower or one of its
consolidated Subsidiaries has an equity ownership interest, or (b) that has
been approved by the Administrative Agent in its reasonable discretion.

“Assignee
Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

“Assignment
and Assumption Agreement”:  an
assignment and assumption entered into by a Lender and an assignee (with the
consent of any party whose consent is required by Section 11.7), and accepted
by the Administrative Agent, in substantially the form of Exhibit A or
any other form approved by the Administrative Agent.

“Assignment
Fee”:  as defined in Schedule 11.7.

 8
 

 

“Assignment
of Interests”:  collectively, (a) the
Second Amended and Restated Assignment of Interests (Distributions Interests
Companies) dated of even date herewith from each of Borrower and New Plan of
Michigan, Inc., as assignors, to the Administrative Agent, for the benefit of
the Lenders, as the same may be modified, amended or restated, pursuant to
which there shall be granted to the Administrative Agent a first priority lien
and security interest in the interests of each of such assignors in the
Collateral described therein, (b) the Second Amended and Restated Assignment of
Interests (Pledged Interests Companies) dated of even date herewith from each
of Borrower, HK New Plan STH Upper Tier II Company, Excel Realty Partners, L.P.
and HK New Plan Mid Tier OH, L.P. to the Administrative Agent, for the benefit
of the Lenders, as the same may be modified, amended or restated, pursuant to
which there shall be granted to the Administrative Agent a first priority lien
and security interest in the interests of 
each of such assignors in the Collateral described therein, and (c) each
additional Assignment of Interests in favor of Administrative Agent, for the
benefit of the Lenders, delivered pursuant to the terms hereof, as the same may
be modified, amended or restated, and any further assignments, certificates,
powers, consents, acknowledgments, estoppels or UCC-1 financing statements that
may be delivered in connection therewith.

“Assignors”:  collectively, Borrower, New Plan of Michigan,
Inc., HK New Plan STH Upper Tier II Company, Excel Realty Partners, L.P. and HK
New Plan Mid Tier OH, L.P. and each Person executing an Assignment of Interests
as an assignor after the date hereof.

“Authorized
Signatory”:  the chairman of the
board, the chief executive officer, the president, any executive vice
president, the Chief Financial Officer or any other duly authorized officer
(acceptable to the Administrative Agent) of the Borrower.

“Bank
of America”:  Bank of America, N.A.

“Bank
of America Fee”:  as defined in
Section 3.1.

“BAS”:  Banc of America Securities LLC, in its
capacity as a Joint Lead Arranger and Book Manager.

“Benefited
Lender”:  as defined in Section
11.10.

“Borrower
Materials”: as defined in Section 7.2.

“Borrower’s
Interest”:  for any period, (a) with
respect to Unencumbered Assets or Operating Properties, as applicable, owned by
a DownREIT Partnership or a wholly owned Subsidiary of a DownREIT Partnership,
a fraction, expressed as a percentage, the numerator of which is the Net Operating
Income of such Unencumbered Assets or Operating Properties, as applicable, for
such period, less any distributions required to be made, directly or
indirectly, to partners or members of such DownREIT Partnership, other than the
Borrower and its Subsidiaries, and the denominator of which is the Net
Operating Income of such Unencumbered Assets or Operating Properties, as
applicable, for such period, and (b) with respect to any Ancillary Asset or
Redevelopment Asset, the Borrower’s pro rata share (based on its beneficial
ownership (direct or indirect) of the applicable Person holding such asset(s))
of the applicable amount being calculated for such period.

“Borrowing
Date”:  the date on which the
Borrower requests the Lenders to make Loans, which date shall be the Effective
Date.

“Business
Day”:  any day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close under the
Laws of, or are in fact closed in, the state where the Administrative Agent’s
Office is located and, if such day relates to any LIBOR Loan, means any such
day on which dealings in Dollar deposits are conducted by and between banks in
the London interbank eurodollar market.

“CA
New Plan”:  CA New Plan Fixed Rate
Partnership, L.P., a Delaware limited partnership.

“Capital
Expense Reserve”:  during any period,
with respect to each Unencumbered Asset, Operating Property or Subject
Property, as applicable, an amount equal to (a) a per annum rate of $.15,
multiplied by (b) the total Net Rentable Area of such Unencumbered Asset,
Operating Property or Subject Property, as applicable (in each case whether or
not such reserves are actually established by the Borrower).

 9
 

 

“Capital
Leases”:  leases which have been, or
under GAAP are required to be, capitalized.

“Change
of Control”:  the occurrence of any
one of the following events:

(a)           any Person or Persons acting as a
group shall acquire direct or indirect ownership of 30% or more of the Borrower’s
common Stock; or

(b)           during any twelve month period on or
after the Effective Date, individuals who at the beginning of such period
constituted the Board of Directors of the Borrower (together with any new
directors whose election by the Board of Directors or whose nomination for
election by the shareholders of the Borrower was approved by a vote of at least
a majority of the members of the Board of Directors then in office who either
were members of the Board of Directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the members of the Board of Directors then
in office; or

(c)           there occurs a change of control of
the Borrower of a nature that would be required to be reported in response to
Item 5.01 of Form 8-K in effect on the date hereof (or any successor
provision) filed pursuant to Section 13 or 15 under the Securities Exchange Act
of 1934, or in any other filing by the Borrower with the Securities and
Exchange Commission; or

(d)           the Borrower consolidates with, is
acquired by, or merges into or with any Person (other than a merger permitted
by Section 8.2).

“Chief
Financial Officer”:  at any time, the
chief financial officer of the Borrower, or if the Borrower does not have a
chief financial officer at such time, the officer designated by the Borrower as
its principal financial officer or such other officer of the Borrower that is
acceptable to the Administrative Agent.

“Code”:  the Internal Revenue Code of 1986, as the
same may be amended from time to time, or any successor thereto, and the rules
and regulations issued thereunder, as from time to time in effect.

“Collateral”:  all of the property, rights and interests of
the Borrower and its Subsidiaries which are subject to the security interests
and liens created by the Security Documents.

“Collateral
Interests”:  collectively, the
Distributions Interests and the Equity Interests, but excluding Additional
Interests.

“Collateral
Interests Owners”:  collectively, the
Distributions Interests Owners and the Equity Interests Owners.

“Collateral
Interests Properties”:  collectively,
the Distributions Interests Properties and the Equity Interests Properties.

“Commitment”:  in respect of any Lender, such Lender’s
undertaking to make Loans, subject to the terms and conditions hereof, in an
aggregate outstanding principal amount not exceeding such Lender’s Commitment
Amount.

“Commitment
Amount”:  the amount set forth next
to the name of such Lender in Exhibit B under the heading “Commitments”
as such Lender’s Commitment Amount, as the same may be changed in accordance
with the terms of this Agreement.

“Commitment
Percentage”:  on any day, and as to
any Lender, the quotient of (a) such Lender’s Commitment Amount on such day,
divided by (b) the Commitment Amount of all Lenders on such day.

 10
 

 

 “Compliance Certificate”:  a certificate substantially in the form of Exhibit
D.

“Consolidated”:  the Borrower and its Subsidiaries which are
consolidated for financial reporting purposes. 
Notwithstanding anything contained herein to the contrary, for purposes
of this Agreement, the phrase “Borrower and its Subsidiaries determined on a
Consolidated basis in accordance with GAAP” (and similar phrases having the
same meaning) shall not be deemed to include the consolidation of FIN 46
Entities (other than the inclusion of the applicable pro-rata share of assets,
liabilities, income or loss attributable to such FIN 46 Entities to the extent
required pursuant to this Agreement).

“Consolidated
EBITDA”:  with respect to any period
an amount equal to the EBITDA of Borrower and its Subsidiaries for such period,
determined on a Consolidated basis in accordance with GAAP.

“Consolidated
Fixed Charges”:  during any period,
the sum of each of the following with respect to the Borrower and its
Subsidiaries (without duplication), determined on a Consolidated basis in
accordance with GAAP:  (a) the aggregate
amount of all interest expense, both expensed and capitalized (including
Consolidated Interest Expense) for such period, (b) the aggregate of all
scheduled principal amounts that become payable during such period in respect
of any Indebtedness of the Borrower or its Subsidiaries (excluding balloon
payments at maturity) and (c) the aggregate amount of all cash dividends paid
during such period in respect of preferred equity of the Borrower or its
Subsidiaries (including, without limitation, in respect of preferred operating
units).

“Consolidated
Interest Expense”:  for any period,
interest and fees accrued, accreted or paid by the Borrower and its
Subsidiaries during such period in respect of Consolidated Total Indebtedness,
determined in accordance with GAAP, including (a) the amortization of debt
discounts to the extent included in interest expense in accordance with GAAP,
(b) the amortization of all fees (including fees with respect to Hedging
Agreements entered into by the Borrower or any of its Subsidiaries) payable in
connection with the incurrence of any Indebtedness to the extent included in
interest expense in accordance with GAAP and (c) the portion of any rents
payable under capital leases allocable to interest expense in accordance with
GAAP.

“Consolidated
Total Indebtedness”:  as of any date,
the aggregate principal amount of all
Indebtedness of the Borrower and its Subsidiaries determined on a Consolidated
basis in accordance with GAAP, plus, if not otherwise required to be reflected
in the Borrower’s Consolidated balance sheet (and without duplication) (a)
Contingent Obligations of the Borrower and its Subsidiaries on such date which
are required in accordance with GAAP to be disclosed in a footnote to any such
balance sheet, and (b) any guarantee (other than guarantees of carve-outs that
constitute Non-Recourse Exclusions until a claim is made with respect thereto,
and then only to the extent of the amount of such claim) by the Borrower of any
Indebtedness of an unconsolidated Subsidiary or Joint Venture in which the
Borrower is a direct or indirect investor (to the full extent of the amount of
such guaranteed Indebtedness on such date); provided, however, that with
respect to any Joint Ventures in which Borrower is a direct or indirect
investor that are not consolidated in the Borrower’s Consolidated balance sheet
or any Joint Ventures that are FIN 46 Entities, Consolidated Total Indebtedness
shall, in any case, (x) include (but without duplication) (i) the aggregate
principal amount of all Indebtedness of such Joint Ventures that is recourse (other than guarantees of carve-outs that
constitute Non-Recourse Exclusions until a claim is made with respect thereto,
and then only to the extent of the amount of such claim) to the Borrower
or one of its Subsidiaries, and (ii) Borrower’s pro rata share (as calculated
in accordance with Section 1.7) of the aggregate principal amount of all
Indebtedness of such Joint Ventures that is Non-Recourse Indebtedness, and (y)
exclude all other Indebtedness of such Joint Ventures.  Notwithstanding the foregoing, unfunded
portions of the Total Commitment Amount or of any other Indebtedness (and any
Contingent Obligations relating solely to such unfunded amounts) shall not be
included in Consolidated Total Indebtedness.

“Contingent
Obligation”:  as to any Person, any
obligation of such Person guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (“Primary Obligations”) of
any other Person (the “Primary Obligor”) in any manner, whether directly or
indirectly, and whether arising from partnership or keep-well agreements,
including, without limitation, any obligation of such Person, whether contingent
or not contingent (without duplication) (a) to purchase any such Primary
Obligation or any Property constituting direct or indirect security therefor,
(b) to advance or supply funds (i) for the purchase or payment of any such
Primary Obligation or (ii) to maintain working capital or equity capital of the
Primary Obligor or otherwise to maintain net worth, solvency or other financial
statement condition of the Primary Obligor, (c) to purchase Property,
securities or

 11
 

 

services primarily
for the purpose of assuring the beneficiary of any such Primary Obligation of
the ability of the Primary Obligor to make payment of such Primary Obligation,
or (d) otherwise to assure, protect from loss or hold harmless the beneficiary
of such Primary Obligation against loss in respect thereof; provided, however,
that the term Contingent Obligation shall not include (x) the endorsement
of instruments for deposit or collection in the ordinary course of business,
(y) guarantees or carve-outs that constitute Non-Recourse Exclusions until
a claim is made with respect thereto, and then shall be included only to the
extent of the amount of such claim or (z) commitments to make capital
contributions to Joint Ventures.  The
term Contingent Obligation shall also include the liability of a general
partner in respect of the liabilities of the partnership in which it is a
general partner, but shall not include the liability of a member (managing or
otherwise) of a limited liability company in respect of the liabilities of such
limited liability company to the extent not imposed by agreement or by
law.  The amount of any Contingent
Obligation of a Person shall be deemed to be an amount equal to the stated or
determinable amount of the Primary Obligation in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by such
Person in good faith.

“Conversion
Date”:  the date on which a LIBOR
Loan is converted to a Prime Rate Loan, or the date on which a Prime Rate Loan
is converted to a LIBOR Loan, or the date on which a LIBOR Loan is converted to
a new LIBOR Loan, all in accordance with Section 2.8.

“Credit
Party”:  the Administrative Agent,
BAS, each Lender and their successors and assigns.

“Debt
Service”: for any period, the sum of all interest (including capitalized
interest) and mandatory or scheduled principal payments due and payable during
such period (including any payments due under any Capital Lease) excluding any
balloon payments due upon maturity of any Indebtedness.

“Default”:  any event or condition which constitutes an
Event of Default or which, with the giving of notice, the lapse of time, or any
other condition, would, unless cured or waived, become an Event of Default.

“Defaulting
Lender”:  at any time, any Lender
that, at such time, (a) has failed to comply with any of its obligations to
make a Loan as required pursuant to this Agreement within one (1) Business Day
of the date required to be funded by it hereunder unless such failure has been
cured, (b) has failed to pay to the Administrative Agent or any Lender any
other amount owed by such Lender pursuant to the terms of this Agreement or any
of the other Loan Documents within one (1) Business Day of the date when due, unless
the subject of a good faith dispute unless such failure has been cured, or (c)
has been deemed insolvent or become subject to a bankruptcy or insolvency
proceeding.

“Deposit
Account”:  that certain account
maintained by Bank of America, designated as account number 3756352740
and any replacement account hereafter established by Borrower with the prior
written consent of Administrative Agent.

“Distribution”:  With respect to any Person, the declaration
or payment of any cash dividend or distribution on or in respect of any shares
of any class of capital stock or other beneficial interest of such Person; the
purchase, redemption, exchange or other retirement by such Person of any shares
of any class of capital stock or other beneficial interest of such Person,
directly or indirectly through a Subsidiary of such Person or otherwise; the
return of capital by such Person to its shareholders, members or partners as
such; or any other distribution on or in respect of any shares of any class of
capital stock or other beneficial interest of such Person.

“Distributions
Interests”:  collectively, one
hundred percent (100%) of the Borrower’s right, title and interest in and to
Distributions received from any Distribution Interests Owner and, to the extent
not prohibited by the Subject Property Loan Documents, one hundred percent
(100%) of the Borrower’s legal, equitable and beneficial right, title and
interest in and to Distributions from any Distributions Interests Owner.

“Distributions
Interests Owners”:  collectively, the
Subsidiaries of Borrower set forth on Exhibit C-2, and any other
Subsidiary of Borrower whose Distributions to Borrower become the subject of a
Distributions Interest after the date hereof pursuant to Section 6.2.

 12
 

 

“Distributions
Interests Properties”:  collectively,
the Subject Properties directly or indirectly owned by the Distributions
Interests Owners more particularly described on Exhibit C-2 and any
other Subject Property directly or indirectly owned by a Distributions
Interests Owner which becomes a Distributions Interests Property after the date
hereof pursuant to Section 6.2.

“Documentation
Agent”:  SunTrust Bank and its
successors, in its role as Documentation Agent hereunder.

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

“Domestic
Lending Office”:  in respect of any
Lender, initially, the office or offices of such Lender designated as such on Exhibit
B; thereafter, such other office of such Lender through which it shall be
making or maintaining Prime Rate Loans, as reported by such Lender to the
Administrative Agent and the Borrower.

“Domestic
Reference Lender”:  Bank of America
or such other Lender as may become the Administrative Agent hereunder.

“DownREIT
Partnership”:  Excel Realty Partners,
L.P. and any other partnership or limited liability company hereafter created
by the Borrower for the purpose of acquiring assets qualifying as “real estate
assets” under Section 856(c) of the Code through the issuance of partnership or
limited liability company units in such partnership or limited liability
company to third parties, provided that, in the case of each such entity
(including Excel Realty Partners, L.P.) (a) the Borrower or a wholly owned
Subsidiary of the Borrower is the sole general partner or managing member of such
partnership or limited liability company, as the case may be, and (b) the
Borrower or such wholly owned
Subsidiary shall be entitled to receive not less than 95% of the net income and
gains before depreciation, if any, from such partnership or limited liability
company after the limited partners or non-managing members of such
partnership or limited liability company receive a stipulated distribution. Any
partnership or limited liability company created after the Effective Date must
be approved by the Administrative Agent as a “DownREIT Partnership” for
purposes of being included in this definition.

“EBITDA”:  with respect to a Person or a Subsidiary of a
Person (or any asset of a Person or a Subsidiary of such Person) for any
period, an amount equal to the sum of (a) the net income (or loss) of such
Person (or attributable to such asset) for such period plus (b)
depreciation and amortization, interest, and any extraordinary or non-recurring
losses or charges for impairment of real estate deducted in calculating such
net income minus (c) any extraordinary or non-recurring gains included
in calculating such net income, all as determined in accordance with GAAP.  EBITDA shall be calculated on a
pro forma basis as if assets acquired during the relevant period were
owned as of the beginning of the relevant period, and all assets disposed of
during the relevant period were not owned during any portion of the relevant
period.  Adjustments for unconsolidated
partnerships, Joint Ventures and FIN 46 Entities will be calculated to reflect
EBITDA on the same basis.

“Effective
Date”:  the date of this Agreement.

“EITF
04-05”:  Emerging Issues Task Force
Consensus on Issue No. 04-05, “Determining Whether a General Partner, or
the General Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights” as adopted in July, 2005
by the Emerging Issues Task Force created by the Financial Accounting Standards
Board.

“Eligible
Assignee”:  any Person that meets the
requirements to be an assignee under Section 11.7(b)(iii), (v) and (vi)
(subject to such consents, if any, as may be required under Section
11.7(b)(iii)).

“Environmental
Laws”:  any and all federal, state
and local laws relating to the environment, the use, storage, transporting,
manufacturing, handling, discharge, disposal or recycling of hazardous
substances, materials or pollutants or industrial hygiene and including,
without limitation, (a) the Comprehensive Environmental Response, Compensation
and Liability Act, as amended, 42 USCA §9601 et seq.; (b) the Resource
Conservation and Recovery Act of 1976, as amended, 42 USCA §6901 et seq.; (c)
the Toxic Substance Control Act, as amended, 15 USCA §2601 et seq.; (d) the
Water Pollution Control Act, as amended, 33 USCA §1251 et seq.; (e) the Clean
Air Act, as amended, 42 USCA §7401 et seq.; (f) the Hazardous Material
Transportation Act, as amended, 49 USCA §1801 et seq. and (g) all rules,
regulations, judgments, decrees, injunctions and restrictions thereunder and
any analogous state law.

 13
 

 

“Environmental
Risk Property”:  any Real Property of
the Borrower, a Subsidiary, a DownREIT Partnership or a Subsidiary of a
DownREIT Partnership in respect of which, at any time:

(a)           Hazardous Substances are (i)
generated or manufactured on, transported to or from, treated at, stored at or
discharged from such Real Property in violation of any Environmental Laws; (ii)
discharged into subsurface waters under such Real Property in violation of any
Environmental Laws; or (iii) discharged from such Real Property on or into
property or waters (including subsurface waters) adjacent to such Real Property
in violation of any Environmental Laws, and any of the foregoing events in (i),
(ii) or (iii) has an Adverse Environmental Impact; or

(b)           there exists with respect to such
Real Property (i) a claim, demand, suit, action, proceeding, condition, report,
directive, lien, violation, or non-compliance concerning any liability
(including, without limitation, potential liability for enforcement, investigatory
costs, cleanup costs, government response costs, removal costs, remedial costs,
natural resources damages, property damages, personal injuries or penalties)
arising in connection with:  (x) any non-compliance
with or violation of the requirements of any applicable Environmental Laws, or
(y) the presence of any Hazardous Substance on such Real Property or the
release of any Hazardous Substance into the environment from such Real
Property, or (ii) any actual liability in connection with the presence of any
Hazardous Substance on such Real Property or the release of any Hazardous
Substance into the environment from such Real Property, and any of the
foregoing events in (i) or (ii) has an Adverse Environmental Impact.

For purposes of
this definition, the term “Adverse Environmental Impact” shall mean any
event described in clauses (i), (ii) or (iii) of paragraph (a) above or clauses
(i) or (ii) of paragraph (b) above which could reasonably be expected to have a
material adverse effect on (1) the value of such Real Property, (2) the
marketability of such Real Property, or (3) the ability to finance or refinance
such Real Property.

“Equity
Interests”:  collectively, one
hundred percent (100%) of the legal, equitable and beneficial ownership
interests in any Subsidiary of Borrower that is a direct or indirect owner of
an Equity Interests Property.

“Equity
Interests Owners”:  collectively, the
Subsidiaries of Borrower set forth on Exhibit C-1, and any other
Subsidiary of Borrower whose entire ownership interest becomes the subject of
an Equity Interest after the date hereof pursuant to Section 6.2.

“Equity
Interests Properties”:  collectively,
the Subject Properties directly or indirectly owned by the Equity Interests
Owners more particularly described on Exhibit C-1 and any other Subject
Property directly or indirectly owned by an Equity Interests Owner which
becomes an Equity Interests Property after the date hereof pursuant to Section
6.2.

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time, and the rules and regulations issued
thereunder, as from time to time in effect.

“ERISA
Affiliate”:  any Person which is a
member of any group of organizations (a) described in Section 414(b) or (c) of
the Code of which the Borrower is a member, or (b) solely for purposes of
potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of
the Code and the Lien created under Section 302(f) of ERISA and Section 412(n)
of the Code, described in Section 414(m) or (o) of the Code of which the
Borrower is a member.

“ERISA
Liabilities”:  without duplication,
the aggregate of all unfunded vested benefits under all Plans and all potential
withdrawal liabilities under all Multiemployer Plans.

“Event
of Default”:  any of the events specified
in Section 9, provided that any requirement for the giving of notice, the lapse
of time or any other condition specified in Section 9 has occurred or been
satisfied.

 14

 

 

“Excess
Funds”:  as defined in the Account
Agreement.

“Excluded
Collateral Interests Subsidiary”:  HK
New Plan Exchange Property Owner I, LLC, a Delaware limited liability company,
HK New Plan Exchange Property Owner II, LP and HK New Plan Exchange Property
Holdings I LLC, a Delaware limited liability company.

“Excluded
Subject Property”:  as defined in the
definition of Subject Property Adjusted Net Operating Income.

“Excluded
Subsidiary”:  (a) any DownREIT
Partnership and any wholly owned Subsidiary of a DownREIT Partnership, (b) CA
New Plan Fixed Rate Partnership, L.P., a Delaware limited partnership, and (c)
any other Subsidiary, other than a wholly-owned Subsidiary that owns an
Unencumbered Asset.

“Existing
Credit Agreement”:  that certain
Second Amended and Restated Revolving Credit Agreement dated as of even date
herewith among the Borrower, Bank of America as Administrative Agent, and the
lenders signatory thereto, as subsequently amended from time to time, and any
restatements, consolidations, replacements or refinancings thereof.

“FAS
141”:  Financial Accounting Standard
141 entitled “Business Combinations” adopted by the Financial Accounting
Standards Board, as the same may be amended, modified or supplemented from time
to time.

“Federal
Funds Rate”:  for any day, 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 on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day; provided that (a) if such day is
not a Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on the
next succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Administrative Agent on such day on such transactions as determined
by the Administrative Agent.

“FIN
46”:  the pronouncement entitled
Financial Interpretation 46 “Consolidation of Variable Interest Entities” by
the Financial Accounting Standards Board on January 17, 2003, as revised from
time to time.

“FIN
46 Entities”:  any entity in which
Borrower or any Subsidiary directly or indirectly owns an interest that is not
a Subsidiary, but that is nonetheless consolidated with Borrower or any
Subsidiary for financial reporting purposes as a result of the application of
FIN 46 or EITF 04-05.

“Financial
Statements”:  as defined in Section
4.13.

“Fitch”:  Fitch Group and any successor thereto.

“Fixed
Charge Coverage Ratio”:  on any date
of determination, for the period of four (4) fiscal quarters just ended prior
to the date of determination, the ratio of (i) Consolidated EBITDA for
such period to (ii) Consolidated Fixed Charges for such period.

“Fund”:  any Person (other than a natural person) that
is (or will be) engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the ordinary course of
its business.

“Funds
from Operations”:  with respect to
any Person for any fiscal period, the sum of (a) the net income of such Person
for such fiscal period (computed in accordance with GAAP), excluding (i) gains
(or losses) from debt restructuring and sales of property and (ii) charges for
impairment of real estate, (b) depreciation and amortization, and (c) other non-cash
items, and after adjustments for unconsolidated partnerships, Joint Ventures
and FIN 46 Entities.  Adjustments for
unconsolidated partnerships, Joint Ventures and FIN 46 Entities will be
calculated to reflect funds from operations on the same basis.

 15
 

 

“GAAP”:  generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board and
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statement by such other entity as may be approved by a significant segment of
the accounting profession, which are applicable to the circumstances as of the
date of determination, consistently applied.

“Governmental
Authority”:  the government of the
United States or any other nation, or of any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the
European Union or the European Central Bank).

“Granting
Lender”: as defined in Section 11.7(j).

“Ground
Lease”:  a ground lease in favor of
the Borrower, a wholly owned Subsidiary of Borrower, a DownREIT Partnership, a
wholly owned Subsidiary of a DownREIT Partnership or a Joint Venture, which (a)
either (i) has an unexpired term of 30 years or more (inclusive of any tenant-controlled
renewal options) or (ii) has a lesser term, but includes an absolute and
non-conditional right of purchase in favor of the Borrower or such other lessee
that, at some point during the term of such Ground Lease, allows for the
purchase of the underlying real property for a de minimus purchase price and
(b) which includes within its terms those rights customarily required by
mortgagees making a loan secured by the interest of the holder of the leasehold
estate demised pursuant to such ground lease.

“Guaranty”:  collectively, (a) the Second Amended and
Restated Guaranty, substantially in the form of Exhibit F executed by
each of the Subsidiary Guarantors identified on Schedule 4.4 and
delivered to the Administrative Agent for the benefit of the Lenders on or prior
to the Effective Date, and (b) each additional Guaranty substantially in the
form of Exhibit F executed by each Required Additional Guarantor and
delivered to the Administrative Agent for the benefit of the Lenders after the
Effective Date.

“Hazardous
Substance”:  any hazardous or toxic
substance, material or waste, including, but not limited to, (a) those
substances, materials, and wastes listed in the United States Department of
Transportation Hazardous Materials Table (49 CFR 172.101) or by the Environmental
Protection Agency as hazardous substances (40 CFR Part 302) and amendments
thereto and replacements therefor, (b) any substance, pollutant or material
defined as, or designated in, any Environmental Law as a “hazardous substance,”
“toxic substance,” “hazardous material,” “hazardous waste,” “restricted
hazardous waste,” “pollutant,” “toxic pollutant” or words of similar import and
(c) toxic mold.

“Hedging
Agreement”:  any interest rate
protection agreement, foreign currency exchange agreement, commodity price
protection agreement or other interest or currency exchange rate or commodity
price hedging arrangement.

“Highest
Lawful Rate”:  with respect to any
Lender, the maximum rate of interest, if any, that at any time or from time to
time may be contracted for, taken, charged or received by such Lender on its
Note or which may be owing to such Lender pursuant to this Agreement under the
laws applicable to such Lender and this Agreement.

“Implied
Debt Service”:  As of any date of determination, the annual Debt
Service of the Borrower and the Subject Property Owners that would be payable
on a loan amount equal to the sum of (a) the Loans, and (b) the Subject
Property Indebtedness (excluding any Subject Property Indebtedness for any
Excluded Subject Property), payable using a 25-year mortgage style amortization
schedule and assuming an interest rate equal to the greater of (i) the then
current yield on ten (10) year obligations issued by the United States Treasury
most recently prior to the date of determination plus one and one half percent
(1.50%), and (ii) six percent (6.00%). 
The Implied Debt Service shall be determined by Administrative Agent and
any such determination, so long as the same shall be made by Administrative
Agent in the exercise of its good faith business judgment, shall be conclusive
and binding absent manifest error.

 16
 

 

“Indebtedness”:  as to any Person, at a particular time, all
items which constitute, without duplication, (a) indebtedness for borrowed
money (including, without limitation, indebtedness under this Agreement and the
Notes) or the deferred purchase price of Property (other than trade payables
incurred in the ordinary course of business), (b) indebtedness evidenced by
notes, bonds, debentures or similar instruments, (c) obligations with respect
to any conditional sale or title retention agreement, (d) indebtedness arising
under acceptance facilities and the amount available to be drawn under all
letters of credit issued for the account of such Person and, without
duplication, all drafts drawn thereunder to the extent such Person shall not
have reimbursed the issuer in respect of the issuer’s payment of such drafts,
(e) all liabilities secured by any Lien on any Property owned by such Person
even though such Person has not assumed or otherwise become liable for the
payment thereof (other than carriers’, warehousemen’s, mechanics’, repairmen’s
or other like non-consensual statutory Liens arising in the ordinary
course of business), (f) obligations under Capital Leases, (g) Contingent
Obligations, (h) ERISA Liabilities and (i) all indebtedness, obligations
or other liabilities under or with respect to any Hedging Agreements that in
accordance with GAAP should be classified upon such Person’s balance sheet as
liabilities, or to which reference should be made by footnotes thereto;
provided, however, that the term Indebtedness shall not include guarantees or
carve-outs with respect to claims of the types referenced in (a)-(d) of the
definition of Non-Recourse Exclusions until a claim is made with respect
thereto, and then shall be included only to the extent of the amount of such
claim.

“Indemnified
Person”:  as defined in Section
11.12.

“Instruction
Letter”: a letter agreement in the form attached hereto as Exhibit E
executed by Borrower, the Administrative Agent and the Servicer pursuant to
which the Servicer will agree to disburse the Excess Funds to the Deposit
Account.

“Intellectual
Property”:  all copyrights,
trademarks, patents, trade names and service names.

“Interest
Payment Date”:  (a) as to any Loan
other than a Prime Rate Loan, the last day of each Interest Period applicable
to such Loan and the Maturity Date; provided, however, that if
any Interest Period for a LIBOR Loan exceeds three months, the respective dates
that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Prime Rate Loan, the last
Business Day of each March, June, September and December and the Maturity Date.

“Interest
Period”:  with respect to any LIBOR
Loans requested by the Borrower, the period commencing on, as the case may be,
the Effective Date or Conversion Date with respect to such LIBOR Loans and
ending one, two, three or six months thereafter, as selected by the Borrower in
its irrevocable request to Administrative Agent with respect to the Loans to be
made on the Effective Date or its irrevocable notice of conversion as provided
in Section 2.8; provided, however, that all of the foregoing provisions
relating to Interest Periods are subject to the following:

(a)           any Interest Period that would
otherwise end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless, in the case of a LIBOR Loan, such Business Day
falls in another calendar month, in which case such Interest Period shall end
on the immediately preceding Business Day;

(b)           if, with respect to the borrowing of
any Loan as a LIBOR Loan or the conversion of one Advance to another pursuant
to Section 2.8, the Borrower shall fail to give due notice with respect to the
Loans to be made on the Effective Date or with respect to a conversion as
provided in Section 2.8, as the case may be, the Borrower shall be deemed to
have elected that such Loan or Advance shall be made as a Prime Rate Loan;

(c)           any Interest Period pertaining to a
LIBOR Loan that begins on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of a
calendar month;

(d)           with respect to any Interest Period
applicable to a LIBOR Loan, no such Interest Period shall end after the
Maturity Date; and

 17
 

 

(e)           the Borrower shall select Interest
Periods so as not to have more than five (5) different Interest Periods
outstanding at any one time with respect to LIBOR Loans.

“Investments”:  with respect to the Borrower or any of its
Subsidiaries, as applicable, any of (a) the purchase, acquisition, holding or
investment by the Borrower or any such Subsidiary in the Stock of, or any other
interest in, any Person, or the making of any loan or any advance to, or the
entering into any arrangement for the purpose of acquiring, holding or
investing in or loaning or advancing to, or the making of any other investment,
whether by way of capital contribution, time deposit or otherwise, in or with
any Person, or (b) the purchase, acquisition, holding or investment in any real
or personal property by the Borrower or any such Subsidiary; provided, that the
provision by Borrower or any such Subsidiary of guarantees and/or letters of
credit to other Persons shall not constitute Investments but shall instead
constitute Indebtedness.

“Joint
Lead Arrangers”:  Banc of America
Securities LLC and BNY Capital Markets, Inc., and their successors, in their
respective capacities as Joint Lead Arranger hereunder.

“Joint
Venture”:  an Investment by Borrower
or any of its Subsidiaries with third persons in joint ventures, general
partnerships, limited partnerships, limited liability companies or any other
business association.  Joint Ventures
include non-wholly owned Subsidiaries of Borrower and FIN 46 Entities, but
exclude DownREIT Partnerships.

“Land
Assets”:  any land of the Borrower or
its Subsidiaries, or in which the Borrower or any of its Subsidiaries has an
interest (either directly or indirectly, through a Joint Venture or otherwise)
with respect to which the commencement of grading, construction of improvements
or infrastructure has not yet commenced, and all unimproved land according to
GAAP.

“Laws”:  collectively, all international, foreign,
Federal, state and local statutes, treaties, rules, guidelines, regulations,
ordinances, codes and administrative or judicial precedents or authorities,
including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration
thereof, and all applicable administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any Governmental
Authority, in each case whether or not having the force of law.

“LIBOR”:  for any Interest Period with respect to any
LIBOR Loan:

(a)           the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or
other commercially available source providing quotations of BBA LIBOR as
designated by the Administrative Agent from time to time) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period, for Dollar deposits (for delivery on the first day of
such Interest Period) with a term equivalent to such Interest Period, or

(b)           if the rate referenced in the
preceding clause (a) does not appear on such page or service or such page or
service shall not be available, the rate per annum equal to the rate determined
by the Administrative Agent to be the offered rate on such other page or other
service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period, determined as
of approximately 11:00 a.m. (London time) two Business Days prior to the first
day of such Interest Period, or

(c)           if the rates referenced in the
preceding clauses (a) and (b) are not available, the rate per annum determined
by the Administrative Agent as the rate of interest at which deposits in
Dollars for delivery on the first day of such Interest Period in same day funds
in the approximate amount of the LIBOR Loan being made, continued, or converted
by Administrative Agent and with a term equivalent to such Interest Period
would be offered by Administrative Agent’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 4:00 p.m.
(London time) two Business Days prior to the first day of such Interest
Period.  In the event that the Board of
Governors of the Federal Reserve System shall impose a Reserve Percentage with respect
to LIBOR deposits of Administrative Agent, then for any period during which
such Reserve Percentage shall apply, LIBOR shall be equal to the amount
determined above divided by an amount equal to 1 minus the Reserve Percentage.

 18
 

 

“LIBOR
Lending Office”:  initially, the
office of each Lender designated as such in Exhibit B hereto;
thereafter, such other office of such Lender, if any, that shall be making or
maintaining LIBOR Loans.

“LIBOR
Loans”:  loans bearing interest
calculated by reference to a LIBOR.

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

“Loan”
and “Loans”:  an individual term
loan or the aggregate term loans as the case may be, to be made by the Lenders
hereunder.  All Loans shall be made in
Dollars.

“Loan
Documents”:  collectively, this
Agreement, the Security Documents, the Guaranty (and each Guaranty subsequently
delivered pursuant to Section 7.11), the Notes, the Acknowledgments and all
other documents, instruments or agreements now or hereafter executed or
delivered by or on behalf of the Borrower, any Subsidiary Guarantor or any of
their respective Subsidiaries evidencing, securing or otherwise relating to the
Loans to which Administrative Agent and/or the Lenders are a party or an
intended beneficiary.

“Management
Fee Value”  the amount of management
fees from any existing Approved Management Contracts actually paid by third
parties to the Borrower and its Subsidiaries (valued by annualizing such fees
for the most recent quarter for which the Borrower has provided financial
information, but excluding income from any contracts terminated during such
quarter), multiplied by six (6); provided, however, that Management Fee Value
shall, for purposes of this Agreement, be reduced to the extent it accounts for
more than 10% of Adjusted Consolidated Total Assets (such that Management Fee
Value shall equal no more than 10% of the final calculated Adjusted
Consolidated Total Assets).

“Margin
Stock”:  any “margin stock”, as said
term is defined in Regulation U of the Board of Governors of the Federal
Reserve System, as the same may be amended or supplemented from time to time.

“Material
Acquisition”:  any purchase or other acquisition, whether by
acquisition of assets, merger, business combination or other similar
transaction, of an interest in any portfolio of Real Properties or the equity
interests of any one or more entities owning any such portfolio of Real
Properties (i) by Borrower and/or any of its Subsidiaries, where the purchase
price or aggregate value is in excess of $250 million, or (ii) by any Joint
Venture, where the purchase price or aggregate value multiplied by Borrower’s
pro rata share (based on its beneficial ownership (direct or indirect) of such
Joint Venture) is in excess of $250 million.

“Material
Adverse Effect”:  a material adverse
effect on (a) the financial condition, operations, business, or Properties of
(A) the Borrower or (B) the Borrower and its Subsidiaries taken as a whole, (b)
the ability of the Borrower to perform any of its material obligations under
the Loan Documents or the ability of the Assignors or the Subsidiary
Guarantors, taken as a whole, to perform their respective material obligations
under any of the Loan Documents to which they are a party, (c) the ability of
the Administrative Agent and the Lenders to enforce the Loan Documents, (d) the
Collateral or (e) any of the Subject Properties.

“Maturity
Date”:  the earlier of (a) August 25,
2010, or (b) the date on which the Notes shall become due and payable, whether
by acceleration or otherwise; provided,
however, that, in each case, if such date is not a Business Day, the Maturity Date shall be the next
succeeding Business Day.

“Moody’s”:  Moody’s Investors Services, Inc. and any
successor thereto.

“Multiemployer
Plan”:  a plan defined as such
Section 3(37) of ERISA to which contributions have been made by the Borrower or
any ERISA Affiliate and which is covered by Title IV of ERISA.

“Net
Operating Income”:  for any period
and with respect to all assets which are Unencumbered Assets, Operating
Properties or Subject Properties, as applicable, during such period, the sum of
(a) net income for such

 19
 

 

period, determined
in accordance with GAAP, attributable to Unencumbered Assets, Operating
Properties or Subject Properties, as applicable (excluding management fees and
other allocated management costs), plus (b) depreciation and
amortization, interest expense and any extraordinary or non-recurring
losses or charges for impairment of real estate deducted in calculating such
net income, minus (c) extraordinary or non-recurring gains and
payments (including rent insurance proceeds and condemnation awards) included
in such net income, minus (d) any portion of such net income
attributable to rents paid by any tenant which is an Affiliate of the Borrower,
minus (e) an assumed
management fee with respect to such Unencumbered Assets and Operating
Properties in the amount of 3.5% of operating income.  For purposes of any calculation of Net
Operating Income, real estate taxes, ground rent and insurance shall be
included only at their stabilized, recurring levels.

“Net
Rentable Area”:  with respect to any
Real Property, the floor area of any buildings, structures or improvements
thereof (expressed in square feet) available for leasing to tenants, as
determined in accordance with the leases or site plans or leasing plans for
such Real Property, or if such leases or site plans or leasing plans do not set
forth the floor area demised thereunder (or if such Real Property is not
subject to a lease), then as determined by the Borrower in accordance with an
industry-accepted protocol approved by the Administrative Agent.

“New
Construction Asset”:  any Property of
the Borrower or its Subsidiaries, or in which the Borrower or any of its
Subsidiaries has an interest (either directly or indirectly, through a Joint
Venture or otherwise) which is new ground-up construction (but not including an
expansion of an existing Property). 
Notwithstanding the foregoing, any such new construction which shall
have been a New Construction Asset under the criteria of this definition shall
no longer be a New Construction Asset upon the earlier of (a) such time as at
least 60% of the Net Rentable Area (determined on an “as completed” basis) of
such construction is initially leased to tenants who have taken possession
thereof and commenced rental payments and (b) the date which is twelve months
(12) following the date on which a certificate of occupancy, whether permanent
or temporary, (or its functional equivalent) has been issued with respect to at
least 60% of the Net Rentable Area of such Property.

“Non-Recourse
Exclusions”:  with respect to any
Non-Recourse Indebtedness of any Person, any usual and customary exclusions
from the non-recourse limitations governing such Indebtedness, including,
without limitation, exclusions for claims that (a) are based on fraud,
intentional misrepresentation, misapplication of funds, gross negligence or
willful misconduct, (b) result from intentional mismanagement of or waste at
the Real Property securing such Non-Recourse Indebtedness, (c) arise from the
presence of Hazardous Substances on the Real Property securing such
Non-Recourse Indebtedness; or (d) are the result of any unpaid real estate
taxes and assessments.

“Non-Recourse
Indebtedness”:  at any time,
Indebtedness of the Borrower, its Subsidiaries or a Joint Venture at such time
which is secured by one or more parcels of Real Property or interests therein
and which is not a general obligation of the Borrower or such Subsidiary, the
holder of such Indebtedness having recourse solely to the parcels of Real
Property, or interests therein, securing such Indebtedness, the leases thereon
and the rents, profits and equity thereof (except for recourse against the general
credit of the Borrower or its Subsidiaries for any Non-Recourse
Exclusions), provided that in calculating the amount of Non-Recourse
Indebtedness at any time, the amount of any Non-Recourse Exclusions which
are the subject of a final judgment shall not be included in Non-Recourse
Indebtedness.

“Note”
and “Notes”:  as defined in
Section 2.2.

“Notes
Receivable”:  mortgage and notes
receivable and reimbursement agreements (to the extent obligations are payable
under such reimbursement agreements), including interest payments thereunder,
of Borrower or any Subsidiary in a Person (other than Borrower or its
Subsidiaries).

“Operating
Property”:  any Real Property which
at any time (a) is an income-producing property in operating condition
and in respect of which no material part thereof has been (i) damaged by fire
or other casualty (unless such damage has been or is in the process of being
repaired) or (ii) condemned in a manner that materially interferes with the
operation thereof (unless such condemnation has been restored), (b) is a retail
shopping center (including single tenant retail properties), and (c) for which
a certificate of occupancy, whether temporary or permanent, or the functional
equivalent thereof, has been issued for the operating portions of the
improvements comprising the same (if required by law to occupy the same) and
are in full force and effect, and “Operating

 20
 

 

Properties”
means all such Operating Properties, collectively.  An Operating Property shall not include any
Redevelopment Asset or any New Construction Asset or properties acquired during
the previous twelve (12) months (until the one year anniversary date for
acquired properties).

“Operating
Property Value”:  as of any date of
determination the quotient of (a) an amount equal to the Adjusted Net Operating
Income for all Operating Properties in the aggregate for the four fiscal
quarters of the Borrower most recently ending as of such date, divided by (b) 8.25%. 
For purposes of any determination of Operating Property Value, the following
limitations and methodology shall apply: 
(i) the Adjusted Net Operating Income of any Operating Property owned by
a DownREIT Partnership or a Subsidiary of a DownREIT Partnership shall be based
on the Borrower’s Interest in the Adjusted Net Operating Income for each such
Operating Property for the four fiscal quarters having most recently ended as
of such date; (ii) in the event more than 15% of the gross base rents payable
under all leases for Properties of the Borrower, its Subsidiaries, DownREIT
Partnerships and Subsidiaries of DownREIT Partnerships (including the Borrower’s
Interest in any Properties) shall be payable by one tenant and its
Subsidiaries, then Operating Property Value shall be reduced by the percentage
amount of such excess multiplied by the Operating Property Value attributable
to the Properties leased or controlled by such tenant and its Subsidiaries; and
(iii) to the extent that a New Construction Asset or Redevelopment Asset
becomes an Operating Property during the relevant period, the Adjusted Net
Operating Income of such Operating Property during such period and the
following periods shall be annualized in a manner reasonably satisfactory to
the Administrative Agent until such time as such Operating Property has
performed as an Operating Property for four (4) full fiscal quarters.  Notwithstanding the foregoing, to the extent
any Real Property is an Operating Property as a result of being held by a
non-Subsidiary Joint Venture of the Borrower (whether directly or indirectly),
the Operating Property Value derived from such Real Property shall be Borrower’s
pro rata share (based on its beneficial ownership of the applicable Joint
Venture) of the otherwise calculated Operating Property Value of such Operating
Property.

“Organization
Documents”:  (a) with respect to any
corporation, the certificate or articles of incorporation and the bylaws (or
equivalent or comparable constitutive documents with respect to any non U.S.
jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement;
and (c) with respect to any partnership, joint venture, trust or other form of
business entity, the partnership, joint venture or other applicable agreement
of formation or organization and any agreement, instrument, filing or notice
with respect thereto filed in connection with its formation or organization
with the applicable Governmental Authority in the jurisdiction of its formation
or organization and, if applicable, any certificate or articles of formation or
organization of such entity.

“Participant”:  has the meaning specified in Section 11.7(d).

“PBGC”:  the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA, or any Governmental
Authority succeeding to the functions thereof.

“PCAOB”
means the Public Company Accounting Oversight Board.

“Permitted
Liens”:  Liens permitted to exist
under Section 8.1.

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

“Plan”:  any employee benefit or other plan
established or maintained by the Borrower or any ERISA Affiliate and which is
covered by or subject to the minimum funding standards of Title IV of ERISA,
other than a Multiemployer Plan.

“Platform”:
as defined in Section 7.2.

“Potential
Properties”:  any Real Properties of
Borrower or any Subsidiary of Borrower which are not at the time included as
Subject Properties and which consist of Real Properties which are capable of
becoming Subject Properties upon satisfaction of the conditions set forth in
Section 6.2.

 21

 

 

“Pricing
Level”:  one of the following five
pricing levels, as applicable, provided that (a) if the Borrower receives only
two ratings and these ratings are not equivalent, the Pricing Level is
determined by the higher of the two ratings; (b) if the Borrower receives more
than two ratings, the Pricing Level is determined by the second highest rating and (c) if the Borrower fails to
maintain a Senior Debt Rating from at least two of S&P, Moody’s or Fitch, Pricing
Level V would be the applicable Pricing Level:

“Pricing
Level I”:  the Pricing Level which
would be applicable for so long as the Senior Debt Rating is greater than or
equal to A-/A3;

“Pricing
Level II”:  the Pricing Level which
would be applicable for so long as the Senior Debt Rating is equal to BBB+/Baa1;

“Pricing
Level III”:  the Pricing Level which
would be applicable for so long as the Senior Debt Rating is equal to BBB/Baa2;

“Pricing
Level IV”:  the Pricing Level which
would be applicable for so long as the Senior Debt Rating is equal to BBB-/Baa3;
and

“Pricing
Level V”:  the Pricing Level which
would be applicable for so long as the Senior Debt Rating is less than BBB-/Baa3
or there is no Senior Debt Rating for the Borrower from at least two of S&P, Moody’s or Fitch.

“Prime
Rate”:  for any day a fluctuating
rate per annum equal to the higher of (a) the Federal Funds Rate plus 1⁄2 of 1%
and (b) the rate of interest in effect for such day as publicly announced from
time to time by Administrative Agent as its “prime rate.”  The “prime rate” is a rate set by
Administrative Agent based upon various factors including Administrative Agent’s
costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans which may be priced at, above,
or below such announced rate.  Any change
in such rate announced by Administrative Agent shall take effect at the opening
of business on the day specified in the public announcement of such change.

“Prime
Rate Loans”:  those Loans bearing
interest calculated by reference to the Prime Rate.

“Property”:  all types of real, personal, tangible,
intangible or mixed property.

“Public
Lender”: as defined in Section 7.2(m).

“Real
Property”:  all real Property, and
all interests in real Property, now or hereafter owned, leased or held by the
Borrower or any Subsidiary of the Borrower, including, without limitation (and
as applicable), interests held indirectly through Joint Ventures.

“Redevelopment
Asset”:  any Property of the Borrower
or its Subsidiaries, or in which the Borrower or any of its Subsidiaries has an
interest (either directly or indirectly, through a Joint Venture or otherwise)
(a) which is not a New Construction Asset and (b) which is undergoing either
(i) a renovation or redevelopment in respect of which (x) the cost is greater
than 25% of the book value of such Property and (y) at least one anchor tenant
lease shall have been executed, which such lease shall provide for occupancy
during the period immediately following the completion of such renovation or redevelopment
or (ii) an expansion which will increase the Net Rentable Area of such Property
by 20,000 square feet or more (provided that with respect to any Property which
is under expansion, if the balance thereof is a fully integrated, rentable
property, then only the portion of such Property that is under expansion shall
be a Redevelopment Asset pursuant to this clause (b)(ii)).  Notwithstanding the foregoing, any such
renovation, redevelopment or expansion which shall have been a Redevelopment
Asset under the criteria set forth in clause (i) or (ii) of this definition
shall no longer be a Redevelopment Asset (A) in the case of a renovation or
redevelopment described in clause (i), upon the earlier of (1) such time as the
applicable anchor tenant has taken possession thereof and commenced rental
payments and (2) the date which is twelve months (12) following the date on
which a certificate of occupancy, whether permanent or temporary, (or its
functional equivalent) has been issued with respect to the applicable anchor
tenant space and (B) in the case of an expansion described in clause (ii), upon
the earlier of (1) such time as at least 60% of the Net Rentable Area
(determined on an “as completed” basis) of such

 22
 

 

expansion is
initially leased to tenants who have taken possession thereof and commenced
rental payments and (2) the date which is twelve months (12) following the date
on which a certificate of occupancy, whether permanent or temporary, (or its
functional equivalent) has been issued with respect to at least 60% of the Net
Rentable Area of such Property.  A
Property shall not be considered a “Redevelopment Asset” solely because such
Property is being restored to its prior condition following a casualty or
condemnation, but may qualify as a “Redevelopment Asset” despite any such
casualty or condemnation to the extent the conditions set forth above in this
definition for qualification as a “Redevelopment Asset” have been satisfied.

“REIT”:  a Person qualifying as a real estate
investment trust under sections 856-859 of the Code and the regulations
and rulings of the Internal Revenue Service issued thereunder.

“Related
Parties”:  with respect to any
Person, such Person’s Affiliates and the partners, directors, officers,
employees, agents and advisors of such Person and of such Person’s Affiliates.

“Remaining
Interest Period”:  (a) in the event
that the Borrower shall fail for any reason to borrow a Loan in respect of
which it shall have requested a LIBOR Loan or to convert an Advance to a LIBOR
Loan after it shall have notified the Administrative Agent of its intent to do
so with respect to the Loans to be made on the Effective Date or with respect
to a conversion pursuant to Section 2.8, a period equal to the Interest Period
that the Borrower elected in respect of such LIBOR Loan; or (b) in the event
that a LIBOR Loan shall terminate for any reason prior to the last day of the
Interest Period applicable thereto, a period equal to the remaining portion of
such Interest Period if such Interest Period had not been so terminated; or (c)
in the event that the Borrower shall prepay or repay all or any part of the
principal amount of a LIBOR Loan, (including, without limitation, any mandatory
prepayment or a prepayment resulting from acceleration or illegality) prior to
the last day of the Interest Period applicable thereto, a period equal to the
period from and including the date of such prepayment or repayment to but
excluding the last day of such Interest Period.

“Rent
Roll”:  a schedule prepared by the
Borrower from time to time identifying (a) the Real Property owned by the
Borrower or its Subsidiaries and stating whether such items of Real Property
are Unencumbered Assets or Subject Property at such time, (b) the annual base
rent payable under each lease of Real Property owned by the Borrower or any of
its Subsidiaries, (c) the commencement and termination dates of the term of
each such lease, (d) any renewal options with respect to such lease, (e) the
Net Rentable Area of the space demised under each such lease and (f) such other
information as the Administrative Agent may reasonably require.

“Replaced
Loan Agreement”:  as defined in the
Recitals hereof.

“Required
Additional Guarantors”:  any
Subsidiary required to execute and deliver a Guaranty pursuant to Section 7.11.

“Required
Lenders”:  the Lenders whose
aggregate Commitment Percentage equals or exceeds fifty-one percent (51%), provided
that the Commitment of any Defaulting Lender shall be excluded from the
calculations of Commitment Amount and Total Commitment Amount for purposes of
making a determination of Required Lenders.

“Required
Payments”:  as defined in Section
2.7(d).

“Reserve
Percentage”:  for any day with
respect to a LIBOR 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”: (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.

 23
 

 

“Restricted
Interests”:  collectively, the
Additional Interests, the Distributions Interests and the Equity Interests.

“Restricted
Payment”:  as to any Person, any
dividend or other distribution by such Person (whether in cash, securities or
other property) with respect to any shares of any class of equity securities or
beneficial interests of such Person, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation
or termination of any such shares or beneficial interests or any option,
warrant or other right to acquire any such shares or beneficial interests.

“Restricted
Subsidiaries”:  collectively, the
Subsidiaries of Borrower that are direct or indirect owners of the Subject
Properties.

“Sarbanes-Oxley”:  the Sarbanes-Oxley Act of 2002.

“SEC”:  the Securities and Exchange Commission, or
any Governmental Authority succeeding to any of its principal functions.

“Securities
Laws”:  the Securities Act of 1933,
the Securities Exchange Act of 1934, Sarbanes-Oxley and the applicable
accounting and auditing principles, rules, standards and practices promulgated,
approved or incorporated by the SEC or the PCAOB.

“Security
Documents”:  the Assignment of
Interests (and each Assignment of Interests subsequently delivered pursuant to
Section 6.2 or Section 8.2), the Account Agreement and any further collateral
assignments to the Administrative Agent for the benefit of the Lenders,
including, without limitation, any UCC-1 financing statements delivered or
authorized to be filed by the Administrative Agent in connection therewith.

“Senior
Debt Rating”:  the senior unsecured
non-credit-enhanced debt rating of the Borrower as determined by
S&P, Moody’s and/or Fitch from time to time; provided, that (a) if the
Borrower receives only two ratings and these ratings are not equivalent, the
spread is determined by the higher of the two ratings; (b) if the Borrower
receives more than two ratings, the spread is determined by the second highest
rating and (c) if the Borrower fails to
maintain a Senior Debt Rating from at least two of S&P, Moody’s or Fitch,
the Pricing Level would be the rating level at less than BBB-/Baa3.

“Servicer”:  Midland Loan Services, Inc., and any
subsequent or replacement servicer of the Account pursuant to the Account
Agreement.

“Sole
Book Manager”:  Banc of America
Securities LLC, together with its successors in such capacity.

“SPC”:
as defined in Section 11.7(j).

“Special
Counsel”:  Moore & Van Allen
PLLC, special counsel to Bank of America.

“S&P”:  Standard & Poor’s Ratings Group and any
successor thereto.

“Stock”:  any and all shares, rights, interests,
participations, warrants, depositary receipts or other equivalents (however
designated) of corporate stock, including, without limitation, so-called “phantom
stock,” preferred stock and common stock.

“Subject
Properties”:  collectively, those
certain Real Properties that are wholly owned in fee simple by Borrower, direct
or indirect wholly owned Subsidiaries of Borrower or a DownREIT Partnership (or
is the subject of a Ground Lease) consisting of retail shopping center assets
more particularly described on Exhibit “C-1”, “C-2” and “C-3”
and any other Real Property from time to time wholly owned by Borrower, a
direct or indirect wholly owned Subsidiary of Borrower or a DownREIT
Partnership which becomes a Subject Property after the date hereof pursuant to
Section 6.2 (or is the subject of a Ground Lease).

 24
 

 

“Subject
Property Adjusted Net Operating Income”: 
for any period, the aggregate amount of the Net Operating Income from
each Subject Property during such period, less the Capital Expense Reserve for
such Subject Property during that period. 
The Borrower acknowledges and agrees that no Subject Property shall be
utilized in the calculation of Subject Property Adjusted Net Operating Income
(and the Subject Property Adjusted Net Operating Income attributable to such
Subject Property shall be $0.00) (a) if there shall have occurred and be
continuing (i) a failure to pay when due (including any applicable period of
grace) any obligation under any Subject Property Indebtedness with respect to
such Subject Property, or (ii) a failure to observe or perform any term,
covenant or agreement under any of the loan documents evidencing such Subject
Property Indebtedness for such period of time as would permit (assuming the
giving of appropriate notice if required) the holder or holders thereof or of
any obligations issued thereunder to accelerate the maturity thereof
(including, without limitation, the acceleration of any bonds relating to any
Subject Property or demand for payment or reimbursement by any “credit enhancer”
or bond issuer) or (b) upon the occurrence of any of the events described
in Sections 9.1(h) or 9.1(i) with respect to Borrower or any Restricted
Subsidiary that is the direct or indirect owner of such Subject Property (such
Subject Property being considered an “Excluded Subject Property”).

“Subject
Property Adjusted Consolidated Total Assets”:  on a Consolidated basis for Borrower and its
Subsidiaries, the sum (without duplication) of the following:

(a)           the Subject Property Operating
Property Value; plus

(b)           the book value of Land Assets and
Redevelopment Assets that are Subject Properties (including, without
limitation, all capitalized costs incurred in connection therewith) on the last
day of the fiscal quarter just ended; plus

(c)           the book value of Subject Properties
acquired during the previous 12 months (until the one-year anniversary date for
such acquired Subject Properties) and Subject Properties constituting New
Construction Assets valued at cost.

Subject Property
Adjusted Consolidated Total Assets shall be calculated on a pro forma basis as
if assets acquired during the relevant period were owned as of the beginning of
the relevant period, and all assets disposed of during the relevant period were
not owned during any portion of the relevant period.

“Subject
Property Indebtedness”:  any
Indebtedness secured by a Lien encumbering a Subject Property.

“Subject
Property Loan Documents”:  the
agreements, documents and instruments evidencing, securing or otherwise
relating to the Subject Property Indebtedness to which the holder of such
Subject Property Indebtedness is a party or intended beneficiary other than
Subject Property Indebtedness encumbering an Additional Interests Property.

“Subject
Property Operating Property Value”: 
as of any date the quotient of (a) an amount equal to the Subject
Property Adjusted Net Operating Income for all Operating Properties that are
Subject Properties in the aggregate for the four fiscal quarters of the
Borrower most recently ending as of such date, divided by (b) 8.25%.  For purposes of any determination of Subject
Property Operating Property Value, the following limitations and methodology
shall apply:  (i) the Subject Property
Adjusted Net Operating Income of any Operating Property that is a Subject
Property owned by a DownREIT Partnership shall be based on the Borrower’s
Interest in the Subject Property Adjusted Net Operating Income for each such
Operating Property that is a Subject Property for the four fiscal quarters
having most recently ended as of such date; (ii) in the event more than 15% of
the gross base rents payable under all leases for Properties of the Borrower,
its Subsidiaries and DownREIT Partnerships (including the Borrower’s Interest
in any Properties) shall be payable by one tenant and its Subsidiaries, then
Subject Property Operating Property Value shall be reduced by the percentage
amount of such excess multiplied by the Subject Property Operating Property
Value attributable to the Subject Properties leased or controlled by such
tenant and its Subsidiaries; and (iii) to the extent that a New Construction
Asset or Redevelopment Asset becomes a Subject Property during the relevant
period, the Subject Property Adjusted Net Operating Income of such Operating

 25
 

 

Property that is a
Subject Property during such period and the following periods shall be
annualized in a manner reasonably satisfactory to the Administrative Agent
until such time as such Operating Property that is a Subject Property has
performed as an Operating Property for four (4) full fiscal quarters.

“Subject
Property Owners”:  the Borrower, the
wholly owned Subsidiaries of Borrower and DownREIT Partnerships indicated on Exhibits
“C-1”, “C-2” and “C-3” as the owners (or ground lessees) of
the Subject Properties and any other wholly owned Subsidiary of the Borrower or
DownREIT Partnership that owns fee title to any Real Property (or the leasehold
interest with respect to Real Property that is the subject of a Ground Lease)
which becomes a Subject Property after the date hereof pursuant to
Section 6.2.

“Subsidiary”:  as to any Person, any corporation,
association, partnership, limited liability company, joint venture or other
business entity (a) which is required pursuant to GAAP to be consolidated with
such Person for financial reporting purposes, and (b) of which such Person,
directly or indirectly, either (i) in respect of a corporation, owns or
controls more than 50% of the outstanding Stock having ordinary voting power to
elect a majority of the board of directors or similar managing body,
irrespective of whether a class or classes shall or might have voting power by
reason of the happening of any contingency, or (ii) in respect of an
association, partnership, limited liability company, joint venture or other
business entity (other than a corporation which is provided for in
(i) above), is entitled to share, either directly or indirectly through an
entity described in clause (i) above, in more than 50% of the profits and
losses, however determined (without taking into account returns of capital to
such Person as an equity investor or payment of fees to such Person for
services rendered to such entity). 
References to “Subsidiaries” contained herein without further express
clarification shall be deemed to be references to Subsidiaries of the Borrower.

“Subsidiary
Guarantor”: the Subsidiaries of the Borrower listed on Schedule 4.4
and designated thereon as a Subsidiary Guarantor, each Required Additional Guarantor,
and their successors and assigns; and “Subsidiary Guarantors” shall mean all
such guarantors, collectively.

“Tangible
Net Worth”:  as of any date of
determination thereof with respect to the Borrower and its Subsidiaries,
determined on a Consolidated basis in accordance with GAAP, the remainder of
(a) the amounts which would, in conformity with GAAP, be included under “shareholder’s
equity” (or any like caption) on a Consolidated balance sheet of the Borrower
and its Subsidiaries as at such date, minus (b) the net book value of all
assets of the Borrower and its Subsidiaries on a Consolidated basis (to the
extent reflected in the Consolidated balance sheet of the Borrower at such
date) which would be treated as intangibles under GAAP, including, without
limitation, goodwill (whether representing the excess cost over book value of
assets acquired or otherwise), patents, trademarks, trade names, franchises,
copyrights, licenses, service marks, rights with respect to the foregoing and
deferred charges (including, without limitation, unamortized debt discount and
expense, organization costs and research and development costs); provided,
however, that to the extent FAS 141 requires treatment of the value of leases
associated with purchased real property as intangible assets, such value shall,
notwithstanding FAS 141, be treated as part of the tangible value of such real
property to the extent such value would, in the absence of FAS 141, have
otherwise been included in such determination.

“Taxes”:  any present or future income, stamp or other
taxes, levies, imposts, duties, fees, assessments, deductions, withholdings, or
other charges of whatever nature, now or hereafter imposed, levied, collected,
withheld, or assessed by any Governmental Authority.

“Total
Commitment Amount”:  on any day, the
sum of the Commitment Amounts of all Lenders on such day.

“Unencumbered
Asset”:  any Operating Property which
Borrower desires to have treated as an Unencumbered Asset and which at any time
(a) is wholly owned in fee simple by the Borrower, a DownREIT Partnership, a
direct or indirect wholly owned Subsidiary of the Borrower or a DownREIT
Partnership or a Joint Venture (or is the subject of a Ground Lease), (b) is
free and clear of all Liens, including any Liens on any direct or indirect
interest of Borrower or any Subsidiary therein (other than Liens permitted
under clauses (a), (b), (c), (d), (e) (f), (i) and (j) of Section 8.1), (c)
does not have applicable to it (or to any such Ground Lease) any restriction on
the pledge, transfer, mortgage or assignment of such Operating Property or
Ground Lease (including any restriction imposed by the organizational documents
of any such Subsidiary or DownREIT Partnership, but excluding (i) any

 26
 

 

requirement in a
Ground Lease that such Ground Lease be assumed upon the assignment thereof and
(ii) any restrictions on transfers applicable to an Operating Property or
Ground Lease owned by a DownREIT Partnership or a wholly owned Subsidiary of a
DownREIT Partnership, so long as any such transfer restrictions shall not
prohibit such DownREIT Partnership or such wholly owned Subsidiary of a
DownREIT Partnership from transferring such Operating Property or Ground Lease
either (A) in a manner that does not trigger the built in gains of the applicable
unit holders in such DownREIT Partnership, including, without limitation,
exchanges pursuant to Section 1031 of the Code, or (B) subject only to the
payment of any tax liability and related expenses of the applicable unit
holders in such DownREIT Partnership in connection with such transfers,
including a reimbursement for taxes imposed upon the applicable unit holders as
a result of such payment), (d) if owned by any such Subsidiary or DownREIT
Partnership, the Stock, partnership interests or membership interests, as the
case may be, of such Subsidiary or DownREIT Partnership that are owned by the
Borrower, any Subsidiary or any DownREIT Partnership are not subject to any
pledge or security interest in favor of any Person other than the Borrower or a
Subsidiary Guarantor, (e) is not an Environmental Risk Property, (f) does not
have, to the best of the Borrower’s knowledge, any title, survey, or other
defect which could reasonably be expected to materially and adversely affect
the value, use, financeability or marketability thereof, and (g) is located
within the contiguous 48 states of the continental United States; and “Unencumbered
Assets” means all such Unencumbered Assets, collectively.  The Unencumbered Assets which are retail
shopping centers shall on an aggregate basis have an occupancy level of tenants
in possession and operating and which are paying base, minimum or similar
regularly scheduled fixed payments of rent (but not pass-throughs of common
area maintenance charges, operating expenses, taxes, insurance and similar
charges) in accordance with the terms of their leases of at least eighty
percent (80%) of the Net Rentable Area within such Unencumbered Assets based on
bona fide arms-length tenant leases requiring current rental payments.

“Unencumbered
Asset Value”:  as of any date, the
sum of (a) the quotient of (i) an amount equal to the Adjusted Net Operating
Income for all Unencumbered Assets in the aggregate for the four fiscal
quarters of the Borrower most recently ending as of such date, divided by (ii)
8.25%, plus (b) Management Fee Value.
For purposes of any determination of Unencumbered Asset Value, the following
limitations and methodology shall apply: 
(A) the Adjusted Net Operating Income of any Unencumbered Asset owned by
a DownREIT Partnership or a wholly owned Subsidiary of a DownREIT Partnership
shall be based on the Borrower’s Interest in the Adjusted Net Operating Income
for each such Unencumbered Asset for the four fiscal quarters having most
recently ended as of such date; (B) the Adjusted Net Operating Income of any
Unencumbered Asset owned by a Joint Venture shall be based on the Borrower’s
Interest in the Adjusted Net Operating Income for each Unencumbered Asset for
the four fiscal quarters having most recently ended as of such date; (C) in the
event more than 15% of the gross base rents payable under all leases for
Properties of the Borrower, its Subsidiaries, DownREIT Partnerships and wholly
owned Subsidiaries of DownREIT Partnerships (including the Borrower’s Interest
in any Properties) shall be payable by one tenant and its Subsidiaries, then
Unencumbered Asset Value shall be reduced by the percentage amount of such
excess multiplied by the Unencumbered Asset Value attributable to the
Properties leased or controlled by such tenant and its Subsidiaries; and (D) to
the extent that a New Construction Asset or Redevelopment Asset becomes an
Operating Property during the relevant period, the Adjusted Net Operating
Income of such Operating Property during such period and the following periods
shall be annualized until such time as such Operating Property has performed as
an Operating Property for four (4) full fiscal quarters.  Notwithstanding the foregoing, to the extent
any Real Property is an Unencumbered Asset and is held by a non-Subsidiary
Joint Venture of the Borrower (whether directly or indirectly), the
Unencumbered Asset Value derived from such Real Property shall be Borrower’s
pro rata share (based on its beneficial ownership of the applicable Joint
Venture) of the otherwise calculated Unencumbered Asset Value of such
Unencumbered Asset.

1.2           Other
Interpretive Provisions.  With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan
Document:

(a)           The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference

 27
 

 

herein to any
Person shall be construed to include such Person’s successors and assigns,
(iii) the words “herein,” “hereof” and “hereunder,” and
words of similar import when used in any Loan Document, shall be construed to
refer to such Loan Document in its entirety and not to any particular provision
thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits
and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, the Loan Document in which such references appear,
(v) any reference to any law shall include all statutory and regulatory
provisions consolidating, amending replacing or interpreting such law and any
reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time,
and (vi) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

(b)           In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to
but excluding;” and the word “through” means “to and including.”

(c)           Section headings herein and in the
other Loan Documents are included for convenience of reference only and shall
not affect the interpretation of this Agreement or any other Loan Document.

1.3           Accounting Terms.

(a)           Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the audited
Financial Statements pursuant to Section 4.13, except as otherwise specifically
prescribed herein.

(b)           Changes in GAAP.  If at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either the Borrower or the Required Lenders shall so
request, the Administrative Agent, the Lenders and the Borrower shall negotiate
in good faith to amend such ratio or requirement to preserve the original
intent thereof in light of such change in GAAP (subject to the approval of the
Required Lenders); provided  that, until so amended, (i) such
ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the Borrower shall provide to the Administrative
Agent and the Lenders financial statements and other documents required under
this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP.

1.4           Rounding.  Any financial ratios required to be
maintained by the Borrower 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
herein and rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).

1.5           Times
of Day. 
Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable).

1.6           Clarification Concerning
Calculations for Joint Ventures.  Notwithstanding anything contained in the
foregoing, to the extent any Real Property is held by a non-Subsidiary Joint
Venture of the Borrower or any of its Subsidiaries and is an Unencumbered
Asset, Operating Property, Land Asset, Redevelopment Asset, New Construction
Asset or Real Property purchased within the last 12 months, the Adjusted Net
Operating Income, Operating Property Value, Unencumbered Asset Value, book
value or cost of such asset derived from such Real Property shall be Borrower’s
pro rata share (based on its beneficial ownership of the applicable Joint
Venture) of the otherwise calculated amount for such Real Property.

2.             AMOUNT AND TERMS
OF LOANS.

2.1           Loans.  Subject to the terms and conditions set forth
in this Agreement, each of the Lenders severally agrees to lend to the Borrower
on the Effective Date the aggregate principal amount of such Lender’s

 28
 

 

Commitment Amount,
for the purposes set forth in Section 2.15.  On the Effective Date, the Total Commitment
Amount as of the Effective Date shall be disbursed to Borrower in a single
advance.  The Loans shall be made pro
rata in accordance with each Lender’s Commitment Percentage.  The acceptance by Borrower of the Loans
hereunder shall constitute a representation and warranty by the Borrower that
all of the conditions set forth in Section 5 have been satisfied.  No Lender shall have any obligation to make a
Loan to the Borrower of more than the principal face amount of its Note.

2.2           Notes.

(a)           Notes as Evidence of Indebtedness.  The Loan of each Lender shall, if requested
by such Lender, be evidenced by a promissory note of the Borrower,
substantially in the form of Exhibit H, with appropriate insertions
therein as to date and principal amount (each, as endorsed or modified from
time to time, a “Note” and, collectively with the Notes of all other
Lenders, the “Notes”), payable to the order of such Lender for the
account of its Applicable Lending Office in the initial principal face amount
equal to the original amount of the Commitment of such Lender and representing
the obligation of the Borrower to pay the lesser of (i) the original amount of
the Commitment of such Lender and (ii) the aggregate unpaid principal balance
of all Loans of such Lender, plus interest and other amounts due and owing to
the Lenders under the Loan Documents.

(b)           The Notes Generally.  Each Note shall bear interest from the date
thereof on the unpaid principal balance thereof at the applicable interest rate
or rates per annum determined as provided in Section 2.9 and shall be stated to
mature on the Maturity Date.  The
following information shall be recorded by each Lender on its books:  (i) the date and amount of the Loan of such
Lender; (ii) its character as a Prime Rate Loan, a LIBOR Loan or a combination
thereof; (iii) the interest rate and Interest Period applicable to LIBOR Loans;
and (iv) each payment and prepayment of the principal thereof; provided, that
the failure of such Lender to make any such recordation or endorsement shall
not affect the obligations of the Borrower to make payment when due of any
amount owing under the Loan Documents.

(c)           By delivery of the Notes, there shall
not be deemed to have occurred, and there has not otherwise occurred, any
payment, satisfaction or novation of the indebtedness evidenced by the “Notes”
as defined in the Replaced Loan Agreement, which indebtedness is instead
allocated among the Lenders as of the date hereof and evidenced by the Notes in
accordance with their respective Commitment Percentages.

2.3           Procedure
for Loan Borrowings.

(a)           Intentionally Omitted.

(b)           Intentionally Omitted.

(c)           Intentionally Omitted.

(d)           Funding of Loans.  Each Lender will make its Loan, in an amount
equal to its Commitment Amount, available to the Administrative Agent for the
account of the Borrower at the office of the Administrative Agent set forth in
Section 11.2 not later than 12:00 noon on the Borrowing Date in funds
immediately available to the Administrative Agent at such office.  The amounts so made available to the
Administrative Agent on the Borrowing Date will then, subject to the
satisfaction of the terms and conditions of this Agreement, as determined by
the Administrative Agent, be made available on such date to the Borrower by the
Administrative Agent at the office of the Administrative Agent specified in
Section 11.2 by crediting the account of the Borrower on the books of such
office with the aggregate of said amounts received by the Administrative Agent.

(e)           Intentionally Omitted.

(f)            Administrative Agent’s Assumption.  Unless the Administrative Agent shall have
received prior notice from a Lender (by telephone or otherwise, such notice to
be promptly confirmed by telecopy or other writing) that such Lender will not
make available to the Administrative Agent such Lender’s pro rata share of the
Loans, the Administrative Agent may assume that such Lender has made such share
available to the Administrative Agent on the Borrowing Date in accordance with
this Section, provided that such Lender received notice of the proposed

 29
 

 

borrowing from the
Administrative Agent, and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower on the Borrowing Date a
corresponding amount.  If and to the
extent such Lender shall not have so made such pro rata share available to the
Administrative Agent, such Lender and the Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount (to the
extent not previously paid by the other), together with interest thereon for
each day from the date such amount is made available to the Borrower until the
date such amount is paid to the Administrative Agent, at a rate per annum equal
to, in the case of the Borrower, the applicable interest rate set forth in
Section 2.9 for Prime Rate Loans or LIBOR Loans, as initially requested by
Borrower, and in the case of a payment to be made by such Lender, the greater of
the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.  Such payment by the Borrower, however, shall
be without prejudice to its rights against such Lender.  If such Lender shall pay to the
Administrative Agent such corresponding amount, such amount so paid shall
constitute such Lender’s Loan as part of the Loans for purposes of this
Agreement, which Loan shall be deemed to have been made by such Lender on the
Borrowing Date applicable to such Loans, but without prejudice to the Borrower’s
rights against such Lender.

2.4           Intentionally Omitted.

2.5           Intentionally Omitted.

2.6           Repayment of Loans; Evidence of
Debt.

(a)           Promise to Pay.  The Borrower hereby unconditionally promises
to pay to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each Loan on the Maturity Date.

(b)           Lenders’ Accounts.  Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the debt of the Borrower
to such Lender resulting from each Loan made by such Lender, including the
amounts of principal and interest payable and paid to such Lender from time to
time hereunder.

(c)           Administrative Agent’s Accounts.  The Administrative Agent shall maintain
accounts in which it shall record (i) the amount of each Loan made hereunder,
the type of Advance thereof and the Interest Period applicable thereto, (ii)
the amount of any principal or interest due and payable or to become due and payable
from the Borrower to each Lender hereunder and (iii) the amount of any other
sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

(d)           Entries Made in Accounts.  The entries made in the accounts maintained
pursuant to paragraphs (b) and (c) of this Section shall, to the extent not
inconsistent with any entries made in any Note and absent manifest error, be
prima facie evidence of the existence and amounts of the obligations recorded
therein, provided that the failure of any Lender, or the Administrative Agent,
to maintain such accounts or any error therein shall not in any manner affect
the obligation of the Borrower to repay the Loans in accordance with the terms
of this Agreement or otherwise to make any payments in accordance with the
terms of the Loan Documents.

(e)           Loans Evidenced by Notes.  The Loans and interest thereon shall, upon
the request of the applicable Lenders, be evidenced by one or more Notes in
like form payable to the order of the payee named therein and its registered
assigns.

2.7           Prepayments of
the Loans.

(a)           Voluntary Prepayments.  The Borrower may, at its option, prepay the
Prime Rate Loans and LIBOR Loans, in whole or in part, without premium or
penalty (other than any indemnification amounts, as provided for in Section
2.14) at any time and from time to time by notifying the Administrative Agent
in writing not later than the Business Day on which Loans consisting of Prime
Rate Loans are prepaid and at least three Business Days prior to the proposed
prepayment date in the case of Loans consisting of LIBOR Loans, specifying the
Loans to be prepaid consisting of Prime Rate Loans, LIBOR Loans or a
combination thereof, the amount to be prepaid and the date of prepayment.  Upon receipt of such notice, the
Administrative Agent shall promptly notify each Lender of the contents
thereof.  Partial prepayments of Prime
Rate Loans and/or LIBOR Loans shall be in an aggregate minimum principal amount
of $5,000,000 or such amount plus a whole multiple of $1,000,000 in excess
thereof, or,

 30
 

 

if less, the
outstanding principal balance thereof. 
Notwithstanding the foregoing, if the outstanding principal balance of
the Loans would be reduced below $25,000,000 as a result of any such partial prepayment,
then such prepayment shall only be permitted if the Borrower prepays the entire
outstanding principal balance of the Loans. 
After giving effect to any partial prepayment with respect to LIBOR
Loans which were converted on the same date and which had the same Interest
Period, the outstanding principal amount of such LIBOR Loans shall be at least
(subject to this Section 2.7(a) and Section 2.8(a)) $1,000,000 or such amount
plus a whole multiple of $100,000 in excess thereof.  Any Loans prepaid shall not be readvanced.

(b)           In General. If any prepayment
is made in respect of any Advance, in whole or in part, prior to the last day
of the applicable Interest Period, the Borrower agrees to indemnify the Lenders
in accordance with Section 2.14.

(c)           Partial Prepayments.  Each partial prepayment of the Loans (other
than Prime Rate Loans) under Section 2.7(a) shall be accompanied by the payment
of accrued interest on the principal prepaid to the date of payment and, after
payment of such interest, shall be applied, in the absence of instruction by
the Borrower, to the Lenders in accordance with the provisions of Section 3.2.

2.8           Conversions.

(a)           Conversion Elections.  The Borrower may elect from time to time to
convert LIBOR Loans to Prime Rate Loans by giving the Administrative Agent at
least one Business Day’s prior irrevocable notice of such election, specifying
the amount to be so converted, provided, that any such conversion of LIBOR
Loans shall only be made on the last day of the Interest Period applicable
thereto.  In addition, the Borrower may
elect from time to time to convert Prime Rate Loans to LIBOR Loans or to
convert LIBOR Loans to new LIBOR Loans by giving the Administrative Agent at
least three (3) Business Days’ prior irrevocable notice of such election,
specifying the amount to be so converted and the initial Interest Period
relating thereto, provided that any such conversion of Prime Rate Loans to
LIBOR Loans shall only be made on a Business Day and any such conversion of
LIBOR Loans to new LIBOR Loans shall only be made on the last day of the
Interest Period applicable to the LIBOR Loans which are to be converted to such
new LIBOR Loans.  Each such notice shall
be in the form of Exhibit M and must be delivered to the Administrative
Agent prior to 12:00 noon on the Business Day required by this Section for the
delivery of such notices to the Administrative Agent.  The Administrative Agent shall promptly
provide the Lenders with notice of any such election.  Prime Rate Loans and LIBOR Loans may be
converted pursuant to this Section in whole or in part, provided that
conversions of Prime Rate Loans to LIBOR Loans, or LIBOR Loans to new LIBOR
Loans, shall be in an aggregate principal amount of $5,000,000 or such amount
plus a whole multiple of $100,000 in excess thereof.

(b)           Effect on Conversions if an Event
of Default.  Notwithstanding anything
in this Section to the contrary, no Prime Rate Loan may be converted to a LIBOR
Loan, and no LIBOR Loan may be converted to a new LIBOR Loan, if a Default or
Event of Default has occurred and is continuing either (i) at the time the
Borrower shall notify the Administrative Agent of its election to convert or
(ii) on the requested Conversion Date. 
In such event, such Prime Rate Loan shall be automatically continued as
a Prime Rate Loan or such LIBOR Loan shall be automatically converted to a
Prime Rate Loan on the last day of the Interest Period applicable to such LIBOR
Loan.

(c)           Conversion not a Borrowing.  Each conversion shall be effected by each
Lender by applying the proceeds of its new Prime Rate Loan or LIBOR Loan, as
the case may be, to its Advances (or portion thereof) being converted (it being
understood that such conversion shall not constitute a borrowing for purposes
of Sections 4 or 5).

2.9           Interest Rate and Payment Dates.

(a)           Prior to Maturity.  Except as otherwise provided in Section
2.9(b), prior to the Maturity Date, the Loans shall bear interest on the
outstanding principal balance thereof at the applicable interest rate or rates
per annum set forth below:

	
  ADVANCES

  	
   

  	
  RATE

  
	
  Each Prime Rate Loan

  	
   

  	
  Prime Rate plus the
  Applicable Margin.

  
	
  Each LIBOR Loan

  	
   

  	
  LIBOR for the applicable Interest Period plus the
  Applicable Margin.

  

 

 31
 

 

 

(b)           Event of Default.  After the occurrence and during the
continuance of an Event of Default, the outstanding principal balance of (i)
the LIBOR Rate Loans and any overdue interest with respect thereto shall bear
interest, whether before or after the entry of any judgment thereon, at a rate
per annum equal to LIBOR for the applicable Interest Period plus the Applicable
Margin plus 2% and (ii) the Prime Rate Loans and any overdue interest with
respect thereto or other overdue amount payable under the Loan Documents shall
bear interest, whether before or after the entry of any judgment thereon, at a
rate per annum equal to the Prime Rate plus 2% (the “Default Rate”).

(c)           Interest Payment Dates.  Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan, provided that
(i) interest accrued pursuant to paragraph (b) of this Section shall be payable
on demand, (ii) in the event of any repayment or prepayment of any Loan,
accrued interest on the principal amount repaid or prepaid shall be payable on
the date of such repayment or prepayment and (iii) in the event of any
conversion of any LIBOR Loans prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion.

(d)           General.  Interest on (i) Prime Rate Loans shall be
calculated on the basis of a year of 365 or 366 days, as the case may be, and
(ii) LIBOR Loans shall be calculated on the basis of a 360-day year, in
each case for the actual number of days elapsed, including the first day but
excluding the last.  Any change in the
interest rate on the Loans resulting from a change in the Prime Rate or a
Pricing Level shall become effective as of the opening of business on the day
on which such change shall become effective. 
The Administrative Agent shall, as soon as practicable, notify the
Borrower and the Lenders of the effective date and the amount of each such
change in the Prime Rate or a Pricing Level, but any failure to so notify shall
not in any manner affect the obligation of the Borrower to pay interest on the
Loans in the amounts and on the dates required. 
Each determination of the Prime Rate, a LIBOR or a Pricing Level by the
Administrative Agent pursuant to this Agreement shall be conclusive and binding
on the Borrower and the Lenders absent manifest error.  At no time shall the interest rate payable on
the Loans of any Lender, together with the Facility Fee and all other amounts
payable under the Loan Documents, to the extent the same are construed to
constitute interest, exceed the Highest Lawful Rate.  If interest payable to a Lender on any date
would exceed the maximum amount permitted by the Highest Lawful Rate, such
interest payment shall automatically be reduced to such maximum permitted
amount, and interest for any subsequent period, to the extent less than the
maximum amount permitted for such period by the Highest Lawful Rate, shall be
increased by the unpaid amount of such reduction.  Any interest actually received for any period
in excess of such maximum allowable amount for such period shall be deemed to
have been applied as a prepayment of the Loans. 
The Borrower acknowledges that the Prime Rate is only one of the bases
for computing interest on loans made by the Lenders, and by basing interest
payable on Prime Rate Loans on the Prime Rate, the Lenders have not committed
to charge, and the Borrower has not in any way bargained for, interest based on
a lower or the lowest rate at which the Lenders may now or in the future make
loans to other borrowers.

2.10         Substituted Interest Rate.  In the event that (a) the Administrative
Agent shall have reasonably determined (which determination shall be conclusive
and binding upon the Borrower) that by reason of circumstances affecting the
interbank eurodollar market adequate and reasonable means do not exist for
ascertaining the LIBOR applicable pursuant to Section 2.9 or (b) the Required
Lenders shall have notified the Administrative Agent that they have reasonably
determined (which determination shall be conclusive and binding on the
Borrower) that the applicable LIBOR will not adequately and fairly reflect the
cost to such Lenders of maintaining or funding loans bearing interest based on
such LIBOR, with respect to any portion of the Loans that the Borrower has
requested be made as LIBOR Loans or LIBOR Loans that will result from the
requested conversion of any portion of the Advances into LIBOR Loans (each, an “Affected
Advance”), the Administrative Agent shall promptly notify the Borrower and the
Lenders (by telephone or otherwise, to be promptly confirmed in writing) of
such determination, on or, to the extent practicable, prior to the requested
Borrowing Date or Conversion Date for such Affected Advances.  If the Administrative Agent shall give such
notice, (x) any Affected Advances shall be made as Prime Rate Loans, (y) the
Advances (or any portion thereof) that were to have been converted to Affected
Advances shall be converted to or continued as Prime Rate Loans and (z) any
outstanding Affected Advances shall be converted, on the last day of the then
current Interest Period with respect thereto, to Prime Rate Loans.  Until any notice under clauses (a) or (b), as
the case may be, of this Section has been withdrawn by the Administrative Agent

 32
 

 

(by notice to the
Borrower promptly upon either (1) the Administrative Agent having determined
that such circumstances affecting the LIBOR market no longer exist and that
adequate and reasonable means do exist for determining the LIBOR pursuant to
Section 2.9 or (2) the Administrative Agent having been notified by such
Required Lenders that circumstances no longer render the Advances (or any
portion thereof) Affected Advances), no further LIBOR Loans shall be required
to be made by the Lenders nor shall the Borrower have the right to convert all
or any portion of the Loans to LIBOR Loans.

2.11         Taxes;
Net Payments.

(a)           All payments made by the Borrower or
any Subsidiary Guarantor under the Loan Documents shall be made free and clear
of, and without reduction for or on account of, any taxes, levies, imposts,
deductions, charges or withholdings required by law to be withheld from any
amounts payable under the Loan Documents. 
A statement setting forth the calculations of any amounts payable
pursuant to this paragraph submitted by a Lender to the Borrower shall be
conclusive absent manifest error.  The
obligations of the Borrower under this Section shall survive the termination of
this Agreement and the Commitments and the payment of the Notes and all other
amounts payable under the Loan Documents.

(b)           Each Lender which is a foreign
corporation within the meaning of Section 1442 of the Code shall deliver to the
Borrower such certificates, documents or other evidence as the Borrower may
reasonably require from time to time as are necessary to establish that such
Lender is not subject to withholding under Section 1441 or 1442 of the Code or
as may be necessary to establish, under any law hereafter imposing upon the
Borrower, an obligation to withhold any portion of the payments made by the
Borrower under the Loan Documents, that payments to the Administrative Agent on
behalf of such Lender are not subject to withholding.

2.12         Illegality.  Notwithstanding any other provisions herein,
if any law, regulation, treaty or directive hereafter enacted, promulgated,
approved or issued, or any change in any presently existing law, regulation,
treaty or directive, or in the interpretation or application thereof, shall
make it unlawful for any Credit Party to make or maintain its LIBOR Loans as
contemplated by this Agreement, such Credit Party shall so notify the
Administrative Agent and the Administrative Agent shall forthwith give notice
thereof to the other Credit Parties and the Borrower, whereupon (a) the
commitment of such Credit Party hereunder to make LIBOR Loans or convert Prime
Rate Loans to LIBOR Loans shall forthwith be suspended and (b) such Credit
Party’s Loans then outstanding as LIBOR Loans affected hereby, if any, shall be
converted automatically to Prime Rate Loans on the last day of the then current
Interest Period applicable thereto or within such earlier period as required by
law.  If the commitment of any Credit
Party with respect to LIBOR Loans is suspended pursuant to this Section and
thereafter it is once again legal for such Credit Party to make or maintain
LIBOR Loans, such Credit Party’s commitment to make or maintain LIBOR Loans
shall be reinstated and such Credit Party shall notify the Administrative Agent
and the Borrower of such event. 
Notwithstanding the foregoing, to the extent that the conditions giving
rise to the notice requirement set forth in this Section can be eliminated by
the transfer of such Credit Party’s Loans or Commitment to another of its
branches, and to the extent that such transfer is not inconsistent with such
Credit Party’s internal policies of general application and only if, as
determined by such Credit Party in its sole discretion, the transfer of such
Loan or Commitment, as the case may be, would not otherwise adversely affect
such Loans or such Credit Party, the Borrower may request, and such Credit
Party shall use reasonable efforts to effect, such transfer.

2.13         Increased Costs.  In the event that any law, regulation, treaty
or directive hereafter enacted, promulgated, approved or issued or any change
in any presently existing law, regulation, treaty or directive therein or in
the interpretation or application thereof by any Governmental Authority charged
with the administration thereof or compliance by any Credit Party (or any
corporation directly or indirectly owning or controlling such Credit Party)
with any request or directive, whether or not having the force of law, from any
central bank or other Governmental Authority, agency or instrumentality:

(a)           does or shall subject any Credit
Party to any Taxes of any kind whatsoever with respect to any LIBOR Loans or
its obligations under this Agreement to make LIBOR Loans, or change the basis
of taxation of payments to any Credit Party of principal, interest or any other
amount payable hereunder in respect of its LIBOR Loans, including any Taxes
required to be withheld from any amounts payable under the Loan Documents
(except for (i) imposition of, or change in the rate of, tax on the
overall net income of such Credit Party or its Applicable Lending Office for any
of such Advances by any jurisdiction, including, in the case of Credit Parties
incorporated in any State of the United States, such tax imposed by the United
States and (ii) any franchise, unincorporated business or gains taxes); or

 33
 

 

(b)           does or shall impose, modify or make
applicable any reserve, special deposit, compulsory loan, assessment, increased
cost or similar requirement against assets held by, or deposits of, or advances
or loans by, or other credit extended by, or any other acquisition of funds by,
any office of such Credit Party in respect of its LIBOR Loans, which, in the
case of LIBOR Loans, is not otherwise included in the determination of the
LIBOR;

(c)           and the result of any of the
foregoing is to increase the cost to such Credit Party of making, issuing,
renewing, converting or maintaining its LIBOR Loans or its commitment to make
such LIBOR Loans, or to reduce any amount receivable hereunder in respect of
its LIBOR Loans, then, in any such case, the Borrower shall pay such Credit
Party, upon its demand, any additional amounts necessary to compensate such
Credit Party for such additional cost or reduction in such amount receivable
which such Credit Party deems to be material as reasonably determined by such
Credit Party; provided, however, that nothing in this Section shall require the
Borrower to indemnify the Credit Parties with respect to withholding Taxes for
which the Borrower has no obligation under Section 2.11.

No failure by any
Credit Party to demand compensation for any increased cost during any Interest
Period shall constitute a waiver of such Credit Party’s right to demand such
compensation at any time.  A statement
setting forth the calculations of any additional amounts payable pursuant to
the foregoing sentence submitted by a Credit Party to the Borrower shall be
conclusive absent manifest error.  The
obligations of the Borrower under this Section shall survive the termination of
this Agreement and any of the Commitments or the payment of the Notes and all
other amounts payable under the Loan Documents for a period of one hundred
eighty (180) days and shall thereafter terminate forever.  Failure to demand compensation pursuant to
this Section shall not constitute a waiver of such Credit Party’s right to
demand such compensation.  To the extent
that any increased costs of the type referred to in this Section are being
incurred by a Credit Party and such costs can be eliminated or reduced by the
transfer of such Credit Party’s Loans or Commitment to another of its branches,
and to the extent that such transfer is not inconsistent with such Credit Party’s
internal policies of general application and only if, as determined by such
Credit Party in its sole discretion, the transfer of such Loan or Commitment,
as the case may be, would not otherwise materially adversely affect such Loan
or such Credit Party, the Borrower may request, and such Lender shall use
reasonable efforts to effect, such transfer.

2.14         Indemnification for Break Funding
Losses. 
Notwithstanding anything contained herein to the contrary, if (a) the
Borrower shall fail to borrow on the Borrowing Date, if it shall have requested
a LIBOR Loan, or shall fail to convert on a Conversion Date, after it shall
have given notice to do so in which it shall have requested a LIBOR Loan pursuant
to Section 2.8, or (b) a LIBOR Loan shall be terminated or prepaid for any
reason prior to the last day of the Interest Period applicable thereto
(including, without limitation, any mandatory prepayment or a prepayment
resulting from acceleration or illegality), the Borrower agrees to indemnify
each Credit Party against, and to pay on demand directly to such Credit Party,
any loss or expense suffered by such Credit Party as a result of such failure
to borrow or convert, or such termination or repayment, including, without
limitation, an amount, if greater than zero, equal to:

A x (B-C) x D/360

where:

“A” equals such Credit Party’s pro rata share of the
Affected Principal Amount;

“B” equals the applicable LIBOR;

“C” equals the applicable
LIBOR (expressed as a decimal) in effect on or about the first day of the
applicable Remaining Interest Period, based on the applicable rates offered or
bid, as the case may be, on or about such date, for deposits in an amount equal
approximately to such Credit Party’s pro rata share of the Affected Principal
Amount with an Interest Period equal approximately to the applicable Remaining
Interest Period, as determined by such Credit Party;

 34
 

 

“D” equals the number of
days from and including the first day of the applicable Remaining Interest
Period to but excluding the last day of such Remaining Interest Period;

and any other out-of-pocket
loss or expense (including any internal processing charge customarily charged
by such Credit Party) suffered by such Credit Party in connection with such
LIBOR Loan including, without limitation, in liquidating or employing deposits
acquired to fund or maintain the funding of its pro rata share of the Affected
Principal Amount, or redeploying funds prepaid or repaid, in amounts which
correspond to its pro rata share of the Affected Principal Amount.  A statement setting forth the calculations of
any amounts payable pursuant to this Section submitted by a Credit Party to the
Borrower shall be conclusive and binding on the Borrower absent manifest
error.  The obligations of the Borrower
under this Section shall survive the termination of this Agreement and the
Commitments and the payment of the Notes and all other amounts payable under
the Loan Documents.

2.15         Use of Proceeds.  The proceeds of Loans shall be used solely
(i) to repay other Indebtedness; and (ii) for general business purposes,
including, without limitation, working capital.

2.16         Capital Adequacy.  If (a) after the date hereof, the enactment
or promulgation of, or any change or phasing in of, any United States or
foreign law or regulation or in the interpretation thereof by any Governmental
Authority charged with the administration thereof, (b) compliance with any
directive or guideline from any central bank or United States or foreign
Governmental Authority (whether or not having the force of law) promulgated or
made after the date hereof, or (c) compliance with the Risk-Based Capital
Guidelines of the Board of Governors of the Federal Reserve System as set forth
in 12 CFR Parts 208 and 225, or of the Comptroller of the Currency, Department
of the Treasury, as set forth in 12 CFR Part 3, or similar legislation, rules,
guidelines, directives or regulations under any applicable United States or
foreign Governmental Authority affects or would affect the amount of capital
required to be maintained by a Credit Party (or any lending office of such
Credit Party) or any corporation directly or indirectly owning or controlling
such Credit Party or imposes any restriction on or otherwise adversely affects
such Credit Party (or any lending office of such Credit Party) or any
corporation directly or indirectly owning or controlling such Credit Party and
such Credit Party shall have reasonably determined that such enactment,
promulgation, change or compliance has the effect of reducing the rate of
return on such Credit Party’s capital or the asset value to such Credit Party
of any Loan made by such Credit Party as a consequence, directly or indirectly,
of its obligations to make and maintain the funding of its Loans at a level
below that which such Credit Party could have achieved but for such enactment,
promulgation, change or compliance (after taking into account such Credit Party’s
policies regarding capital adequacy) by an amount deemed by such Credit Party
to be material, then, upon demand by such Credit Party, the Borrower shall
promptly pay to such Credit Party such additional amount or amounts as shall be
sufficient to compensate such Credit Party for such reduction in such rate of
return or asset value.  A certificate in
reasonable detail as to such amounts submitted to the Borrower and the
Administrative Agent setting forth the determination of such amount or amounts
that will compensate such Credit Party for such reductions shall be presumed correct
absent manifest error.  No failure by any
Credit Party to demand compensation for such amounts hereunder shall constitute
a waiver of such Credit Party’s right to demand such compensation at any
time.  Such Credit Party shall, however,
use reasonable efforts to notify the Borrower of such claim within 90 days
after the officer of such Credit Party having primary responsibility for this
Agreement has obtained knowledge of the events giving rise to such claim.  The obligations of the Borrower under this
Section shall survive the termination of this Agreement and the Commitments and
the payment of the Notes and all other amounts payable under the Loan
Documents.

2.17         Administrative Agent’s Records.  The Administrative Agent’s records with
respect to the Loans, the interest rates applicable thereto, each payment by
the Borrower of principal and interest on the Loans, and fees, expenses and any
other amounts due and payable in connection with this Agreement shall be
presumptively correct absent manifest error as to the amount of the Loans, and
the amount of principal and interest paid by the Borrower in respect of such
Loans and as to the other information relating to the Loans, and amounts paid
and payable by the Borrower hereunder and under the Notes.  The Administrative Agent will when requested
by the Borrower advise the Borrower of the principal and interest outstanding
under the Loans as of the date of such request and the dates on which such
payments are due.

 35

 

 

3.             FEES; PAYMENTS.

3.1           Fees.

(a)           The Borrower agrees to pay to Bank of
America and BAS on the Effective Date all arrangement, commitment and loan
structuring fees (collectively, the “Bank of America Fee”), as provided in the
Agreement Regarding Fees.  Bank of
America shall pay to the other Lenders a commitment and loan structuring fee in
accordance with their separate agreement.

(b)           The Borrower shall pay to the
Administrative Agent, for the Administrative Agent’s own account, an
Administrative Agent’s fee as set forth in the Agreement Regarding Fees.  The Administrative Agent’s fee shall be
payable quarterly in arrears on the first day of each calendar quarter for the
immediately preceding calendar quarter or portion thereof.  The Administrative Agent’s fee shall also be
paid upon the Maturity Date.  The
Administrative Agent’s fee for any partial calendar quarter shall be prorated.

(c)           The Borrower agrees to pay any other
fees payable to any Credit Party under any separate agreement at the times so
agreed upon in such separate agreements.

(d)           The Bank of America Fee shall be paid
on the date due, in immediately available funds, to Bank of America.  The Bank of America Fee and all other fees
and amounts paid shall not be refundable under any circumstances.

3.2           Payments; Application of Payments.  Each payment, including each prepayment, of
principal and interest on the Loans and the Bank of America Fee, the
Administrative Agent’s fees, and any other amounts due hereunder shall be made
by the Borrower to the Administrative Agent or Bank of America, as applicable,
without set-off, deduction or counterclaim, at its office set forth in
Section 11.2 in funds immediately available to the Administrative Agent at such
office by 12:00 noon on the due date for such payment.  Promptly upon receipt thereof by the
Administrative Agent, the Administrative Agent shall remit, in like funds as
received, to the Lenders who maintain any of their Loans as Prime Rate Loans or
LIBOR Loans, each such Lender’s pro rata share of such payments which are in
respect of principal or interest due on such Prime Rate Loans or LIBOR Loans;
provided that any such payment shall, to the extent distributed after the
Business Day following the Administrative Agent’s receipt thereof, be
accompanied by interest on such payment amount (payable by the Administrative
Agent) calculated at the Federal Funds Rate commencing as of the date which is
two (2) days following the Business Day following the Administrative Agent’s
receipt of such payment through the date on which the Administrative Agent
makes such payment to the applicable Lender(s). 
The failure of the Borrower to make any such payment by such time shall
not constitute a default hereunder, provided that such payment is made on such
due date, but any such payment made after 12:00 noon on such due date shall be
deemed to have been made on the next Business Day for the purpose of
calculating interest on amounts outstanding on the Loans.  If any payment hereunder or under the Notes
shall be due and payable on a day which is not a Business Day, the due date
thereof (except as otherwise provided in the definition of Interest Period)
shall be extended to the next Business Day and interest shall be payable at the
applicable rate specified herein during such extension.  If any payment is made with respect to any
LIBOR Loans prior to the last day of the applicable Interest Period, the
Borrower shall indemnify each Lender in accordance with Section 2.14.

4.             REPRESENTATIONS
AND WARRANTIES.

In
order to induce the Administrative Agent and the Lenders to enter into this
Agreement and to make the Loans the Borrower makes the following
representations and warranties to the Administrative Agent and each Lender:

4.1           Existence and Power.

(a)           The Borrower (i) is a Maryland corporation
duly organized and validly existing and in good standing under the laws of
Maryland, (ii) has all requisite power and authority to own its Property
and to carry on its business as now conducted, and (iii) is in good
standing and authorized to do business in each jurisdiction in which the nature
of the business conducted therein or the Property owned therein make such
qualification necessary, except where such failure to qualify could not
reasonably be expected to have a Material Adverse Effect.

 36
 

 

(b)           Each Subsidiary of the Borrower
(including each Subsidiary Guarantor) (i) is a corporation, partnership,
limited liability company, real estate investment trust or business trust, is
validly existing and in good standing under the laws of the jurisdiction of its
organization and has all requisite power and authority to own its Property and
to carry on its business as now conducted, and (ii) is in good standing
and authorized to do business in each other jurisdiction in which the nature of
the business conducted therein or the Property owned therein make such
qualification necessary, except where such failure to qualify could not
reasonably be expected to have a Material Adverse Effect.

4.2           Authority.

(a)           The Borrower has full legal power and
authority to enter into, execute, deliver and perform the terms of the Loan
Documents to which it is a party and to make the borrowings contemplated
thereby, to execute, deliver and carry out the terms of the Notes and to incur
the obligations provided for herein and therein, all of which have been duly
authorized by all proper and necessary corporate action.

(b)           Each Assignor has full legal power
and authority to enter into, execute and deliver and perform the terms of the
Loan Documents to which it is a party, all of which have been duly authorized
by all proper and necessary partnership or limited liability company action, as
applicable.

4.3           Binding Agreement.

(a)           The Loan Documents to which the
Borrower or any of its Subsidiaries is a party constitute the valid and legally
binding obligations of such Person, enforceable in accordance with their
respective terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors’ rights generally.

(b)           The execution, delivery and
performance by the Borrower and its Subsidiaries of the Loan Documents to which
any such Person is a party do not violate the provisions of any applicable
statute, law (including, without limitation, any applicable usury or similar
law), rule or regulation of any Governmental Authority.

4.4           Subsidiaries; DownREIT
Partnerships. 
As of the Effective Date, the Borrower has only the Subsidiaries set
forth on Schedule 4.4.  Schedule
4.4 sets forth the name of, and the ownership interest of the Borrower in,
each Subsidiary of the Borrower and identifies each Subsidiary that is a
Subsidiary Guarantor, in each case as of the Effective Date.  The shares of each corporate Subsidiary of
the Borrower that are owned by the Borrower are duly authorized, validly
issued, fully paid and nonassessable and are owned free and clear of any
Liens.  The interest of the Borrower in
each non-corporate Subsidiary is owned free and clear of any Liens (other
than Liens applicable to a partner under the terms of any partnership
agreement, or those applicable to a member under the terms of any limited
liability company operating agreement, to secure the Borrower’s obligation to
make capital contributions or similar payments thereunder).  As of the Effective Date, the only DownREIT
Partnership is Excel Realty Partners, L.P. and the only Subsidiaries of Excel
Realty Partners, L.P. are as set forth on Schedule 4.4.  As of the Effective Date, there is no
Subsidiary of the Borrower (other than ERT Development Corporation) that is a
guarantor of any unsecured Indebtedness of Borrower (other than the Loans) that
is not also a Subsidiary Guarantor.

4.5           Litigation.

(a)           There are no actions, suits or
proceedings at law or in equity or by or before any Governmental Authority
(whether or not purportedly on behalf of the Borrower or any Subsidiary of the
Borrower) pending or, to the knowledge of the Borrower, threatened against the
Borrower or any Subsidiary of the Borrower or any of their respective Properties
or rights, which (i) could reasonably be expected to have a Material Adverse
Effect, (ii) call into question the validity or enforceability of any of the
Loan Documents, or (iii) could reasonably be expected to result in the
rescission, termination or cancellation of any franchise, right, license,
permit or similar authorization held by the Borrower or any Subsidiary of the
Borrower, which rescission, termination or cancellation could reasonably be
expected to have a Material Adverse Effect.

 37
 

 

(b)           As of the date hereof, Schedule
4.5 sets forth all actions, suits and proceedings at law or in equity or by
or before any Governmental Authority (whether or not purportedly on behalf of
the Borrower or any Subsidiary of the Borrower) pending or, to the knowledge of
the Borrower, threatened against the Borrower, any Subsidiary of the Borrower
or any of their respective Properties or rights which, if adversely determined,
could reasonably be expected to have a Material Adverse Effect.

4.6           Required Consents.  Except for filings associated with the
perfection of security interests, no consent, authorization or approval of,
filing with, notice to, or exemption by, stockholders, any Governmental
Authority or any other Person not obtained is required to be obtained by the
Borrower or any of its Subsidiaries to authorize, or (except for filings
required to be made with the SEC) is required in connection with the execution,
delivery and performance of the Loan Documents or is required to be obtained by
the Borrower or any of its Subsidiaries as a condition to the validity or
enforceability of the Loan Documents.

4.7           No Conflicting Agreements.  Neither the Borrower nor any Subsidiary of
the Borrower is in default beyond any applicable grace or cure period under any
mortgage, indenture, contract or agreement to which it is a party or by which
it or any of its Property is bound, the effect of which default could
reasonably be expected to have a Material Adverse Effect.  The execution, delivery or carrying out of
the terms of the Loan Documents will not constitute a default under, or result
in the creation or imposition of, or obligation to create, any Lien upon any
Property of the Borrower or any Subsidiary of the Borrower pursuant to the
terms of any such mortgage, indenture, contract or agreement.

4.8           Compliance with Applicable Laws.  Neither the Borrower nor any Subsidiary of
the Borrower is in default with respect to any judgment, order, writ,
injunction, decree or decision of any Governmental Authority which default could
reasonably be expected to have a Material Adverse Effect. The Borrower and each
Subsidiary of the Borrower is in compliance in all material respects with all
statutes, regulations, rules and orders applicable to Borrower or such
Subsidiary of all Governmental Authorities, including, without limitation, (a)
Environmental Laws and ERISA, a violation of which could reasonably be expected
to have a Material Adverse Effect and (b) §§856-860 of the Code,
compliance with which is required to preserve the Borrower’s status as a REIT.

4.9           Taxes.  Each of the Borrower and its Subsidiaries has
filed or caused to be filed all material tax returns required to be filed and
has paid, or has filed appropriate extensions and has made adequate provision
for the payment of, all taxes shown to be due and payable on said returns or in
any assessments made against it (other than those being contested as permitted
under Section 7.4) in which the failure to pay could reasonably be expected to
have a Material Adverse Effect, and no tax Liens have been filed with respect
thereto.  The charges, accruals and
reserves on the books of the Borrower and each Subsidiary of the Borrower with
respect to all federal, state, local and other taxes are, to the best knowledge
of the Borrower, adequate for the payment of all such taxes, and the Borrower
knows of no unpaid assessment which is due and payable against it or any of its
Subsidiaries or any claims being asserted which could reasonably be expected to
have a Material Adverse Effect.

4.10         Governmental Regulations.  Neither the Borrower nor any Subsidiary of
the Borrower is subject to regulation under the Federal Power Act, as amended,
or the Investment Company Act of 1940, as amended, and neither the Borrower nor
any Subsidiary of the Borrower is subject to any statute or regulation which
prohibits or restricts the incurrence of Indebtedness under the Loan Documents,
including, without limitation, statutes or regulations relative to common or
contract carriers or to the sale of electricity, gas, steam, water, telephone,
telegraph or other public utility services.

4.11         Federal Reserve Regulations; Use of
Loan Proceeds. 
Neither the Borrower nor any Subsidiary of the Borrower is engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying any Margin
Stock.  No part of the proceeds of the
Loans will be used, directly or indirectly, for a purpose which violates any
law, rule or regulation of any Governmental Authority, including, without
limitation, the provisions of Regulations T, U or X of the Board of Governors
of the Federal Reserve System, as amended. 
No part of the proceeds of the Loans will be used, directly or
indirectly, to purchase or carry Margin Stock or to extend credit to others for
the purpose of purchasing or carrying Margin Stock.

4.12         Plans; Multiemployer Plans.  As of the Effective Date, each of the
Borrower and its ERISA Affiliates maintains or makes contributions only to the
Plans and Multiemployer Plans listed on Schedule 4.12.

 38
 

 

Each Plan, and, to
the best knowledge of the Borrower, each Multiemployer Plan, is in compliance
in all material respects with, and has been administered in all material
respects in compliance with, the applicable provisions of ERISA, the Code and
any other applicable Federal or state law, and no event or condition is
occurring or exists concerning which the Borrower would be under an obligation
to furnish a report to the Administrative Agent and each Lender as required by
Section 7.2(d).  As of May 31, 2006, each
Plan was “fully funded”, which for purposes of this Section means that the fair
market value of the assets of such Plan is not less than the present value of
the accrued benefits of all participants in the Plan, computed on a plan
termination basis.  To the best knowledge
of the Borrower, no Plan has ceased being fully funded.

4.13         Financial Statements.  The Borrower has heretofore delivered to the
Administrative Agent and the Lenders (a) copies of the audited Consolidated
Balance Sheet of the Borrower and its Consolidated Subsidiaries as of
December 31, 2003, December 31, 2004 and December 31, 2005, and the
unaudited Consolidated Statements of Operations, Stockholders’ Equity and Cash
Flows for the Borrower and its Consolidated Subsidiaries for the three months
ended March 31, 2006, and (b) the unaudited Consolidated Statements of Income
and Cash Flows for the Borrower and its Consolidated Subsidiaries for the three
months ended March 31, 2006, certified by its Chief Financial Officer
(collectively, with the related notes and schedules, the “Financial Statements”).  The Financial Statements fairly present in
all material respects the Consolidated financial condition and results of the
operations of the Borrower and its Consolidated Subsidiaries as of the dates
and for the periods indicated therein and have been prepared in conformity with
GAAP (subject, in the case of quarterly financial statements, to the absence of
footnotes and to normal year-end adjustments). 
Except as reflected in the Financial Statements or in the notes thereto,
neither the Borrower nor any Subsidiary of the Borrower (including any Subject
Property Owner) has any obligation or liability of any kind (whether fixed,
accrued, contingent, unmatured or otherwise) involving material amounts which,
in accordance with GAAP, should have been shown on the Financial Statements and
was not.  Since March 31, 2006 there has
been no material adverse change in the condition (financial or otherwise),
operations, prospects or business of the Borrower and its Subsidiaries taken as
a whole.

4.14         Property.  Each of the Borrower and its Subsidiaries has
good and marketable title to all of its Property, title to which is material to
the Borrower or such Subsidiary, subject to no Liens, except Permitted
Liens.  There are no unpaid or
outstanding real estate or similar taxes or assessments on or against any Real
Property other than (a) real estate or other taxes or assessments that are not
yet due and payable, and (b) such taxes as the Borrower or any Subsidiary of
the Borrower is contesting in good faith or which individually or in the
aggregate could not reasonably be expected to have a Materially Adverse
Effect.  There are no pending eminent
domain proceedings against any Real Property, and, to the knowledge of the
Borrower, no such proceedings are presently threatened or contemplated by any
Governmental Authority against any Real Property, which pending, threatened or
contemplated proceedings individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. 
None of the Real Property is now damaged as a result of any fire,
explosion, accident, flood or other casualty which individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect.

4.15         Franchises, Intellectual Property,
Etc. 
Each of the Borrower and its Subsidiaries possesses or has the right to
use all franchises, Intellectual Property, licenses and other rights, in each
case that are material and necessary for the conduct of its business, with no
known conflict with the valid rights of others which could reasonably be
expected to have a Material Adverse Effect. 
No event has occurred which permits or, to the best knowledge of the
Borrower, after notice or the lapse of time or both, or any other condition,
could reasonably be expected to permit, the revocation or termination of any
such franchise, Intellectual Property, license or other right and which
revocation or termination could reasonably be expected to have a Material
Adverse Effect.

4.16         Environmental
Matters.

(a)           The Borrower and each of its
Subsidiaries is in compliance with the requirements of all applicable
Environmental Laws except for such non-compliance which could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

(b)           No Hazardous Substances have been (i)
generated or manufactured on, transported to or from, treated at, stored at or
discharged from any Real Property in violation of any Environmental Laws; (ii)
discharged into subsurface waters under any Real Property in violation of any
Environmental Laws; or (iii) discharged from any Real Property on or into
property or waters (including subsurface waters) adjacent to any Real Property
in violation of any Environmental Laws, which violation, in the case of any of
(i), (ii) or (iii) could, either individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 39
 

 

(c)           Neither the Borrower nor any of its
Subsidiaries (i) has received notice (written or oral) or otherwise learned of
any claim, demand, suit, action, proceeding, event, condition, report,
directive, lien, violation, non-compliance or investigation indicating or
concerning any potential or actual liability (including, without limitation,
potential liability for enforcement, investigatory costs, cleanup costs,
government response costs, removal costs, remedial costs, natural resources
damages, property damages, personal injuries or penalties) arising in
connection with (A) any non-compliance with or violation of the
requirements of any applicable Environmental Laws, or (B) the presence of any
Hazardous Substance on any Real Property (or any Real Property previously owned
by the Borrower or any Subsidiary of the Borrower) or the release or threatened
release of any Hazardous Substance into the environment which, in either case,
could, either individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect, (ii) has any threatened or actual liability in
connection with the presence of any Hazardous Substance on any Real Property
(or any Real Property previously owned by the Borrower or any Subsidiary of the
Borrower) or the release or threatened release of any Hazardous Substance into
the environment which, in either case, could, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, (iii) has
received notice of any federal or state investigation evaluating whether any
remedial action is needed to respond to the presence of any Hazardous Substance
on any Real Property (or any Real Property previously owned by the Borrower or
any Subsidiary of the Borrower) or a release or threatened release of any
Hazardous Substance into the environment for which the Borrower or any
Subsidiary of the Borrower is or may be liable the results of which could, in
either case, either individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, or (iv) has received notice that the Borrower
or any Subsidiary of the Borrower is or may be liable to any Person under any
Environmental Law which liability could, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

(d)           To the best of the Borrower’s
knowledge, no Real Property is located in an area identified by the Secretary
of Housing and Urban Development as an area having special flood hazards, or if
any such Real Property is located in such a special flood hazard area, then the
Borrower has obtained all insurance that is required to be maintained by law or
which is customarily maintained by Persons engaged in similar businesses and
owning similar Properties in the same general areas in which the Borrower
operates.

4.17         Labor Relations.  Neither the Borrower nor any of its
Subsidiaries is a party to any collective bargaining agreement, other than the
collective bargaining agreement covering fewer than 25 employees at the
Roosevelt Mall Shopping Center in Philadelphia, Pennsylvania, and, to the best
knowledge of the Borrower, no petition has been filed or proceedings instituted
by any employee or group of employees with any labor relations board seeking
recognition of a bargaining representative with respect to the Borrower or such
Subsidiary.  There are no material
controversies pending between the Borrower or any Subsidiary and any of their
respective employees, which could reasonably be expected to have a Material
Adverse Effect.

4.18         Setoff.  The rights of the Administrative Agent and
the Lenders with respect to the Collateral are not subject to any setoff,
withholdings or other defenses.  The
Borrower and the Assignors are the owners of the Collateral free from any lien,
security interest, encumbrance, setoff or other claim or demand other than
Liens expressly permitted pursuant to Section 8.1 and setoff rights of
financial institutions against deposits of Borrower and its Subsidiaries held
by such financial institutions.

4.19         Solvency.  On the Effective Date and immediately
following the making of the Loans, and after giving effect to the application
of the proceeds of such Loans:  (a) the
fair value of the assets of the Borrower and its Subsidiaries, taken as a
whole, at a fair valuation, will exceed the debts and liabilities, including
Contingent Obligations, of the Borrower and its Subsidiaries, taken as a whole;
(b) the present fair saleable value of the Property of the Borrower and its
Subsidiaries, taken as a whole, will be greater than the amount that will be
required to pay the probable liability of the debts and other liabilities,
subordinated, contingent or otherwise of the Borrower and its Subsidiaries, as
such debts and other liabilities become absolute and mature; (c) the Borrower
and its Subsidiaries, taken as a whole, will be able to pay its debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and mature; and (d) the Borrower and its
Subsidiaries, taken as a whole, will not have unreasonably small capital with
which to conduct the business in which they are engaged as such business is now
conducted and is proposed to be conducted hereafter.

 40
 

 

4.20         REIT Status.  The Borrower (a) has made an election
pursuant to Section 856 of the Code to qualify as a REIT, (b) has satisfied and
continues to satisfy all of the requirements under §§ 856-859 of the Code
and the regulations and rulings issued thereunder which must be satisfied for
the Borrower to maintain its status as a REIT, and (c) is in compliance in all
material respects with all Code sections applicable to REITs generally and the
regulations and rulings issued thereunder.

4.21         List of Unencumbered Assets.  A list of all the Unencumbered Assets as of
the date of this Agreement is attached hereto as Schedule 4.21.

4.22         Operation of Business.  The Borrower is a self-advised and self-managed
REIT.

4.23         No Misrepresentation.  No representation or warranty contained
herein and no certificate or report furnished or to be furnished by the
Borrower or any Subsidiary of the Borrower in connection with the transactions
contemplated hereby, when taken together with all other information furnished
by the Borrower or any Subsidiary of the Borrower in connection herewith,
contains or will contain a misstatement of material fact, or, to the best
knowledge of the Borrower, omits or will omit to state a material fact required
to be stated in order to make the statements herein or therein contained not
materially misleading in the light of the circumstances under which made; provided,
that with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based on assumptions
believed to be reasonable at the time made.

4.24         Taxpayer ID.  The Borrower’s true and correct U.S. taxpayer
identification number is set forth on Schedule 11.2

5.             CONDITIONS TO
EFFECTIVENESS OF THIS AGREEMENT.

The
obligation of each Lender to make its Loan shall be subject to the fulfillment
of the following conditions precedent:

5.1           Evidence of
Action.

(a)           The Administrative Agent shall have
received a certificate, dated the Effective Date, of the Secretary or Assistant
Secretary of the Borrower substantially in the form of Exhibit I (i)
attaching a true and complete copy of the resolutions of its Board of Directors
authorizing the execution and delivery of the Loan Documents by the Borrower
and the performance of the Borrower’s obligations thereunder, and of all other
documents evidencing other necessary action (in form and substance reasonably
satisfactory to the Administrative Agent) taken by it to authorize the Loan
Documents and the transactions contemplated thereby, (ii) attaching a true and
complete copy of its articles of incorporation and by-laws, (iii) setting
forth the incumbency of its officer or officers who may sign the Loan Documents,
including therein a signature specimen of such officer or officers, and (iv)
certifying that said corporate charter and by-laws are true and complete
copies thereof, are in full force and effect and have not been amended or
modified.

(b)           The Administrative Agent shall have
received a certificate, dated the Effective Date, of the Secretary or Assistant
Secretary of each Subsidiary Guarantor (or such Subsidiary Guarantor’s managing
partner, general partner or managing member, as applicable) substantially in
the form of Exhibit J (i) attaching a true and complete copy of the
resolutions of its Board of Directors, Trustees or Managers, as the case may
be, authorizing its execution and delivery of the Guaranty and the performance
of its obligations thereunder, and of all other documents evidencing other
necessary action (in form and substance reasonably satisfactory to the
Administrative Agent) taken by it to authorize the Guaranty and the
transactions contemplated thereby, (ii) attaching a true and complete copy of
its articles of incorporation or corporate charter, declaration of trust or
certificate of formation and, if applicable, by-laws, operating agreement
or agreement of limited liability company, and if such certificate is from such
Subsidiary Guarantor’s managing partner, general partner or managing member,
attaching a true and complete copy of the applicable Subsidiary Guarantor’s
partnership agreement or operating agreement and other organizational
documents, (iii) setting forth the incumbency of its officer or officers who
may sign the Guaranty, including therein a signature specimen of such officer
or officers, and (iv) certifying that said organizational documents are true
and complete copies thereof, are in full force and effect and have not been
amended or modified.

 41
 

 

(c)           The Administrative Agent shall have
received a certificate, dated the Effective Date, of the Secretary or Assistant
Secretary of each Assignor substantially in the form of Exhibit K (i) attaching a true and
complete copy of the resolutions of its Board of Directors, Trustees or
Managers, as the case may be (or such Assignor’s managing partner, general
partner or managing member), authorizing its execution and delivery of the
Assignment of Interests and the performance of its obligations thereunder, and
of all other documents evidencing other necessary action (in form and substance
reasonably satisfactory to the Administrative Agent) taken by it to authorize
the Assignment of Interests and the transactions contemplated thereby, (ii) attaching
a true and complete copy of its articles of incorporation or corporate charter,
declaration of trust or certificate of formation and, if applicable, by-laws,
operating agreement or agreement of limited liability company, and if such
certificate is from such Assignor’s managing partner, general partner or
managing member, attaching a true and complete copy of the applicable Assignor’s
partnership agreement or operating agreement and other organizational
agreements, (iii) setting forth the incumbency of its officer or officers
who may sign the Assignment of Interests, including therein a signature
specimen of such officer or officers, and (iv) certifying that said
organizational documents are true and complete copies thereof, are in full
force and effect and have not been amended or modified.

(d)           The Administrative Agent shall have
received certificates of good standing for the Borrower from the Maryland State
Department of Assessments and Taxation and for each Subsidiary Guarantor and
each Assignor from the Secretary of State for the State in which such
Subsidiary Guarantor and such Assignor is incorporated or formed, as
applicable, and for the Borrower from each jurisdiction other than Maryland in
which the Borrower is qualified to do business.

5.2           This Agreement.  The Administrative Agent shall have received
counterparts of this Agreement signed by each of the parties hereto (or receipt
by the Administrative Agent from a party hereto of a facsimile signature page
signed by such party which shall have agreed to promptly provide the
Administrative Agent with originally executed counterparts hereof).

5.3           Notes.  To the extent the same have been requested,
the Administrative Agent shall have received the Notes, duly executed by an
Authorized Signatory of the Borrower.

5.4           Guaranty.  The Administrative Agent shall have received
counterparts of the Guaranty signed by each of the Subsidiary Guarantors (or
receipt by the Administrative Agent from a party hereto of a facsimile
signature page signed by such party which shall have agreed to promptly provide
the Administrative Agent with originally executed counterparts thereof).

5.5           Security Documents.  The Administrative Agent shall have received
counterparts of the Security Documents signed by each of the parties thereto
(or receipt by the Administrative Agent from a party thereto of a facsimile
signature page signed by such party which shall have agreed to promptly provide
the Administrative Agent with the originally executed counterparts thereof).
Additionally, the Administrative Agent shall have received, at the Borrower’s
expense, evidence in form and substance satisfactory to the Administrative
Agent that the Security Documents are effective to create in favor of the
Administrative Agent, for the benefit of the Lenders, a legal, valid and
enforceable first security interest in the Collateral described in the Security
Documents and that all filings, recordings, deliveries of instruments and other
actions necessary or desirable to protect and preserve such security interests
have been duly effected and that any and all consents necessary or desirable
with respect to such security interest, have been received and remain in full
force and effect as of the Effective Date.

5.6           Instruction Letter.  The Administrative Agent shall have received
counterparts of the Instruction Letter duly executed by an authorized officer
of the Servicer and by the Borrower.

5.7           Litigation.  There shall be no injunction, writ,
preliminary restraining order or other order of any nature issued by any
Governmental Authority in any respect affecting the transactions provided for
herein and no action or proceeding by or before any Governmental Authority
shall have been commenced and be pending or, to the knowledge of the Borrower,
threatened, seeking to prevent or delay the transactions contemplated by the
Loan Documents or challenging any other terms and provisions hereof or thereof
or seeking any damages in connection therewith and the Administrative Agent
shall have received a certificate of an Authorized Signatory of the Borrower to
the foregoing effects.

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5.8           Opinion of Counsel to the Borrower.  The Administrative Agent shall have received
an opinion of (a) Hogan & Hartson, L.L.P., outside counsel to the Borrower,
and (b) Steven F. Siegel, Esq., in-house counsel to the Borrower, and (c)
counsel to each Subsidiary Guarantor and each Assignor, and their respective
general partners, managing partners or managing members, as applicable, each
addressed to the Administrative Agent and the Lenders, and each dated the
Effective Date, and each in form and substance satisfactory to Administrative
Agent, covering such matters as Administrative Agent may reasonably request.

5.9           Fees.  The Bank of America Fee and all other fees
payable to the Administrative Agent, BAS and the Lenders shall have been paid.

5.10         Fees and Expenses of Special Counsel.  The fees and expenses of Special Counsel in
connection with the preparation, negotiation and closing of the Loan Documents
shall have been paid.

5.11         Compliance.  On the Effective Date and after giving effect
to the Loans to be made or created, (a) the Borrower shall be in compliance
with all of the terms, covenants and conditions hereof, (b) there shall not
exist and be continuing any Default or Event of Default, (c) the
representations and warranties contained in the Loan Documents shall be true
and correct, and (d) the aggregate outstanding principal balance of the Loans
shall not exceed the Total Commitment Amount.

5.12         Loan Closing.  All documents required by the provisions of
the Loan Documents to be executed or delivered to the Administrative Agent on
or before the Effective Date shall have been executed and shall have been
delivered at the office of the Administrative Agent set forth in Section 11.2 on
or before the Effective Date.

5.13         Documentation and Proceedings.  All corporate matters and legal proceedings
and all documents and papers in connection with the transactions contemplated
by the Loan Documents shall be reasonably satisfactory in form and substance to
the Administrative Agent and the Administrative Agent shall have received all
information and copies of all documents which the Administrative Agent or the
Required Lenders may reasonably have requested in connection therewith, such
documents (where appropriate) to be certified by an Authorized Signatory of the
Borrower or proper Governmental Authorities.

5.14         Required Acts and Conditions.  All acts, conditions and things (including,
without limitation, the obtaining of any necessary regulatory approvals and the
making of any filings, recordings or registrations) required to be done or
performed by the Borrower and to have happened on or prior to the Effective
Date and which are necessary for the continued effectiveness of the Loan
Documents, shall have been done or performed and shall have happened in due
compliance with all applicable laws.

5.15         Approval of Special Counsel.  All legal matters in connection with the
making of each Loan shall be reasonably satisfactory to Special Counsel.

5.16         Other Documents.  The Administrative Agent shall have received
such other documents and information with respect to the Borrower and its
Subsidiaries or the transactions contemplated hereby as the Administrative
Agent or the Lenders shall reasonably request.

5.17         Loan to Value.  The Administrative Agent shall have received
evidence in form and substance satisfactory to the Administrative Agent, that
the sum of (a) outstanding principal balance of the Loans on the Effective Date
plus (b) the sum of the Subject Property Indebtedness as of the Effective Date,
is not greater than seventy-five percent (75%) of the then Subject Property
Adjusted Consolidated Total Assets.

6.             COLLATERAL
SECURITY; RESTRICTED INTERESTS.

6.1           Collateral.  The obligations of the Borrower under the
Loan Documents shall be secured by (a) a perfected first priority lien or
security title and security interest to be held by the Administrative Agent for
the benefit of the Lenders in the Collateral, and (b) such additional
collateral, if any, as the Administrative Agent for the benefit of the Lenders
from time to time may accept as security for the obligations of the Borrower
under the Loan Documents or which is added pursuant to Section 6.2.  The obligations of the Borrower under the
Loan Documents shall also be guaranteed pursuant to the terms of the Guaranty.

 43
 

 

6.2           Substitution or Addition of
Restricted Interests.  Provided no Default or Event of Default
(other than a Default or Event of Default under Section 8.19 or 8.20 which is
being cured as a result of the transactions contemplated by this Section 6.2)
shall have occurred hereunder or under the other Loan Documents and be
continuing (or would exist immediately after giving effect to the transactions
contemplated by this Section 6.2), the Borrower from time to time may include
certain Potential Properties owned by Borrower, its wholly owned Subsidiaries
or DownREIT Partnerships as additional Subject Properties for the purpose of
replacing existing Subject Properties or providing additional Subject
Properties in order to ensure compliance with or to cure a breach of the
Borrower’s covenants contained in Section 8.19 and Section 8.20.  Notwithstanding the foregoing, no Potential
Properties shall be included as additional Subject Properties unless and until
the following conditions precedent shall have been satisfied:

(a)           Borrower shall have indicated to
Administrative Agent in writing whether such proposed Potential Properties are
intended to be Equity Interests Properties, Distribution Interests Properties
or Additional Interests Properties and such Potential Properties shall qualify
as Subject Properties;

(b)           the Potential Property shall be
owned, directly or indirectly, one hundred percent (100%) by Borrower, a direct
or indirect wholly owned Subsidiary of Borrower or a DownREIT Partnership and
Borrower or a wholly owned Subsidiary of Borrower shall have (i) total control
over all decisions regarding the Potential Property (other than with respect to
a Potential Property owned by a DownREIT Partnership) (including the operation,
financing and disposition thereof) or (ii) the possession, directly or
indirectly, of the power to direct or cause the direction of management and
policies of the entities to which such Potential Interests relate, whether through
the ownership of voting securities, ownership interests, by contract or
otherwise, with respect to DownREIT Partnerships;

(c)           the
Potential Property shall be a retail shopping center;

(d)           there shall be no security interests
in, liens on, or other encumbrances affecting such Potential Property or the
Borrower’s and its Subsidiaries’ direct and indirect interests therein except
security interests, liens and encumbrances expressly permitted under
Section 8.1;

(e)           solely with respect to Potential
Properties intended to constitute Collateral Interests Properties, each of the
representations set forth in the Assignment of Interests to be executed
pursuant to (f) below shall be true and correct;

(f)            solely with respect to Potential
Properties intended to constitute Collateral Interests Properties, Borrower and
any applicable Subsidiary of Borrower shall have executed and delivered to the
Administrative Agent all instruments, documents, or agreements, including an
Assignment of Interests in substantially the same form as the Assignment of
Interests delivered to Administrative Agent on the date hereof, Acknowledgments
in substantially the same form as the Acknowledgments delivered to
Administrative Agent on the date hereof and Uniform Commercial Code financing
statements, as the Administrative Agent shall deem reasonably necessary or
desirable to obtain and perfect a first priority security interest in, or lien
on, the interests related to such Potential Property which are intended to
constitute Collateral Interests;

(g)           prior to or contemporaneously with
such addition or substitution, the Borrower shall submit to Administrative
Agent a Compliance Certificate prepared on a proforma basis (and adjusted in
the best good faith estimate of the Borrower to give effect to such addition or
substitution) demonstrating that after giving effect to such addition or
substitution, no Default or Event of Default shall exist with respect to
Section 8.19 and Section 8.20 (and Administrative Agent shall promptly forward
a copy of such Compliance Certificate to such Lender);

(h)           the Administrative Agent, on behalf
of the Lenders, shall have received any certificates, opinions or other
information or documentation with respect to the applicable Potential Property
and related proposed Collateral Interest(s) (if any) as the Administrative
Agent, shall deem reasonably necessary or desirable; and

 44
 

 

(i)            after giving effect to the inclusion
of such Potential Properties as Subject Properties, the Borrower shall be in
compliance with all covenants contained herein and in the other Loan Documents.

If all of the
foregoing conditions precedent shall have been satisfied, each such Potential
Property shall be deemed a Subject Property and an Equity Interests Property,
Distribution Interests Property or an Additional Interests Property (consistent
with Borrower’s designation pursuant to clause (a) above), and Administrative
Agent may unilaterally amend Exhibits “C-1”, “C-2” and “C-3”,
as applicable, to give effect to such addition and/or substitution.

6.3           Sale of a Subject Property.  Provided no Default or Event of Default shall
have occurred hereunder or under the other Loan Documents and be continuing (or
would exist immediately after giving effect to the transactions contemplated by
this Section 6.3 and transactions simultaneously occurring under Section 6.2,
if any), a Subject Property Owner may from time to time sell, transfer or
otherwise convey a Subject Property (or the Borrower or a Subsidiary may sell,
transfer or convey the direct or indirect interests in such Subject Property
Owner) to a third party or enter into a Joint Venture pursuant to which
Borrower no longer owns directly or indirectly 100% of the interests in a
Subject Property Owner, provided that, solely with respect to sales, transfers
or conveyances of a Collateral Interests Property or the Borrower’s or its
Subsidiaries’ direct or indirect interests therein or the consummation of any
such Joint Venture, such sale, transfer, conveyance or consummation of such a
Joint Venture shall be upon the following terms and conditions in either case:

(a)           The Borrower shall deliver to the
Administrative Agent written notice of the desire to consummate each such sale,
transfer, conveyance or Joint Venture on or before the date on which each such
sale, transfer, conveyance or Joint Venture is to be effected;

(b)           Prior to or contemporaneously with
such sale, transfer or conveyance or the consummation of such Joint Venture,
the Borrower shall submit to Administrative Agent a Compliance Certificate prepared
on a proforma basis (and adjusted in the best good faith estimate of the
Borrower to give effect to such sale, transfer or conveyance or Joint Venture)
demonstrating that after giving effect to (i) such sale, transfer or
conveyance or Joint Venture and (ii) the prepayment described in (c) below, if
any, no Default or Event of Default shall exist with respect to
Section 8.19 and Section 8.20 (and Administrative Agent shall promptly
forward a copy of such Compliance Certificate to such Lender); and

(c)           To the extent required to remain in
compliance with Borrower’s covenants set forth in Section 8.19 and Section
8.20, the Borrower shall either (i) provide additional Subject Properties
pursuant to and in accordance with Section 6.2 necessary to remain in
compliance with Borrower’s covenants set forth in Section 8.19 and Section 8.20
or (ii) pay to the Administrative Agent for the account of the Lenders, which
payment shall be applied to reduce the outstanding principal balance of the
Loans, a release price for such Property in an amount necessary to remain in
compliance with Borrower’s covenants set forth in Section 8.19 and Section
8.20.  Such payments shall be applied to
reduce the outstanding principal balance of the Loans; provided, that
the Borrower shall not be required to make a payment which would reduce the
principal balance below zero.

After giving
effect to such sale, transfer or conveyance or Joint Venture, the underlying
Real Property that was the subject of such sale, transfer or conveyance or
Joint Venture shall no longer be a Subject Property, and the Administrative
Agent may unilaterally amend Exhibit “C-1”, “C-2” and “C-3”,
as applicable to give effect to such sale, transfer, conveyance or Joint
Venture and shall, at the request and the expense of the Borrower, take such
actions as may be reasonably requested to release the Collateral associated
with such Real Property from the lien or security interest of the Security
Documents.  Nothing in this Section 6.3
shall in any way be applicable to or otherwise restrict the sale, transfer or
conveyance of Additional Interests or Additional Interests Properties.

6.4           Release of Collateral Interest.  Provided no Default or Event of Default shall
have occurred hereunder or under the other Loan Documents and be continuing (or
would exist immediately after giving effect to the transactions contemplated by
this Section 6.4), the Administrative Agent shall release a Collateral Interest
from the lien or security title of the Security Documents encumbering the same
upon the request and at the expense of the Borrower in connection with either
(a) the payment in full by the applicable Collateral Interests Owners of the
applicable Subject Property Indebtedness with respect to such Collateral
Interest or (b) the transfer of a property to a Subsidiary in accordance with
Section 8.2 (other than a transfer pursuant to which such property is required
under

 45
 

 

this Agreement to
be maintained as Collateral), subject to and upon the following terms and
conditions (to the extent not already satisfied pursuant to Section 6.3):

(i)            The Borrower shall deliver to the
Administrative Agent written notice of the desire to obtain such release on or
before the date on which each such release is to be effected;

(ii)           Prior to or contemporaneously with
such release, the Borrower shall submit to Administrative Agent a Compliance
Certificate prepared on a proforma basis (and adjusted in the best good faith
estimate of the Borrower to give effect to such release) demonstrating that
after giving effect to (A) such release and (B) the prepayment described
in (iii) below, if any, no Default or Event of Default shall exist with respect
to Section 8.19 and Section 8.20 (and Administrative Agent shall promptly
forward a copy of such Compliance Certificate to such Lender); and

(iii)          To the extent required to remain in
compliance with Borrower’s covenants set forth in Section 8.19 and Section
8.20, the Borrower shall either (A) provide additional Subject Properties
pursuant to and in accordance with Section 6.2 necessary to remain in
compliance with Borrower’s covenants set forth in Section 8.19 and Section 8.20
or (B) pay to the Administrative Agent for the account of the Lenders, which
payment shall be applied to reduce the outstanding principal balance of the
Loans, a release price for such Property in an amount necessary to remain in
compliance with Borrower’s covenants set forth in Section 8.19 and Section
8.20.  Such payments shall be applied to
reduce the outstanding principal balance of the Loans; provided, that
the Borrower shall not be required to make a payment which would reduce the
principal balance below zero.

After giving
effect to such release, the underlying Real Property that was the subject of
such release shall no longer be a Subject Property, and Administrative Agent
may unilaterally amend Exhibit “C-1”, “C-2” and “C-3”, as
applicable to give effect to such release.

7.             AFFIRMATIVE
COVENANTS.

The
Borrower agrees that, so long as any Loan remains outstanding and unpaid, or
any other amount is owing under any Loan Document to any Lender or the
Administrative Agent, the Borrower shall:

7.1           Financial Statements.  Maintain a standard system of accounting in
accordance with GAAP, and furnish or cause to be furnished to the
Administrative Agent:

(a)           Annual Statements.  As soon as available, but in any event within
120 days after the end of each fiscal year of the Borrower, a copy of its
Consolidated Balance Sheet as at the end of such fiscal year, together with the
related Consolidated Statements of Income, Stockholders’ Equity and Cash Flows
as of and through the end of such fiscal year, setting forth in each case in
comparative form the figures for the preceding fiscal year.  The Consolidated Balance Sheets and
Consolidated Statements of Income, Stockholders’ Equity and Cash Flows shall be
audited and accompanied by (i) a report and opinion of the Accountants, which
report and opinion shall be prepared in accordance with generally accepted
auditing standards and applicable Securities Laws and shall not be subject to
any “going concern” or like qualification or exception or any qualification or
exception as to the scope of such audit or with respect to the absence of any
material misstatement (including the opinion of such Accountants that such Consolidated
financial statements present fairly, in all material respects, the Consolidated
financial position of the Borrower and its Subsidiaries, as of the date of such
Consolidated financial statements, and the Consolidated results of their
operations and their cash flows for each of the years identified therein in
conformity with GAAP (subject to any change in the requirements of GAAP)) and
(ii) an attestation report of the Accountants as to the Borrower’s internal
controls pursuant to Section 404 of Sarbanes-Oxley.

(b)           Annual Operating Statements and
Rent Roll.  As soon as available, but
in any event within 120 days after the end of each fiscal year of the Borrower,
and, if requested by Administrative Agent, within sixty (60) days after the end
of the first three fiscal quarters of each year of the Borrower, copies of (i)
the operating statements (in a form reasonably satisfactory to the
Administrative Agent) for all Real Property of the Borrower, and (ii) a Rent
Roll, each of which shall be certified by the Chief Financial Officer to be
true, correct and complete in all material respects.  Additionally, upon the request of the
Administrative Agent, the Borrower shall deliver to the Administrative Agent a
Rent Roll.

 46
 

 

(c)           Quarterly Statements.  As soon as available, but in any event within
60 days after the end of the first three fiscal quarters of each year of the
Borrower, a copy of the unaudited Consolidated Balance Sheet of the Borrower as
at the end of each such quarterly period, together with the related unaudited
Consolidated Statements of Income and Cash Flows for the elapsed portion of the
fiscal year through the end of such period, setting forth in each case in
comparative form the figures for the corresponding periods of the preceding
fiscal year, certified by the Chief Financial Officer as being true, correct
and complete in all material respects and as presenting fairly the Consolidated
financial condition and the Consolidated results of operations of the Borrower
and its Subsidiaries.

(d)           Quarterly
Information Regarding Unencumbered Assets and Subject Properties.

(i)            Concurrently with the delivery of
the financial statements referred to in Sections 7.1(a) and 7.1(c), a list of
all the Unencumbered Assets owned by the Borrower, any wholly owned Subsidiary
of the Borrower, each DownREIT Partnership and any wholly owned Subsidiary of a
DownREIT Partnership as of the last day of such fiscal quarter setting forth
the following information with respect to each such Unencumbered Asset as of
such date:  (A) location; (B) percentage
of the Unencumbered Asset owned by the Borrower, any wholly owned Subsidiary of
the Borrower, each DownREIT Partnership and any wholly owned Subsidiary of a
DownREIT Partnership; and (C) the Net Operating Income for such Unencumbered
Asset during such fiscal quarter.

(ii)           If required by Administrative Agent,
concurrently with the delivery of the financial statements referred to in
Sections 7.1(a) and 7.1(c), a list of all the Subject Properties owned by any
Subsidiary of the Borrower as of the last day of such fiscal quarter setting
forth the following information with respect to each such Subject Property as
of such date:  (A) location; (B) the
Net Operating Income for such Subject Property during such fiscal quarter, and
(C) a list and description of the Subject Property Indebtedness for such
Subject Property.

(e)           Compliance Certificate.  Concurrently with the delivery of the
financial statements referred to in Sections 7.1(a) and 7.1(c), a Compliance
Certificate, certified by the Chief Financial Officer, setting forth in
reasonable detail the computations demonstrating the Borrower’s compliance with
the provisions of Sections 8.13, 8.14, 8.15, 8.16, 8.17, 8.18, 8.19 and 8.20.

(f)            Other Information.  Such other information as the Administrative
Agent or any Lender may reasonably request from time to time (it being
understood that Public Lenders shall not be entitled to receive any material
non-public information).

Administrative
Agent, the Lenders and Borrower acknowledge and agree that the Consolidated
financial statements of the Borrower that are required to be delivered pursuant
hereto may include FIN 46 Entities, provided, however, that the
Borrower covenants and agrees to provide to the Administrative Agent and the
Lenders simultaneously with the delivery of such financial statements the
back-up information and calculations utilized by the Borrower in performing the
calculations set forth in the Compliance Certificate (in a form reasonably
satisfactory to the Administrative Agent).

7.2           Certificates;
Other Information.  Furnish to the Administrative Agent:

(a)           Defaults Under Other Indebtedness.  Prompt written notice if:  (i) any Indebtedness of the Borrower or any
Subsidiary of the Borrower is declared or shall become due and payable prior to
its stated maturity, or called and not paid when due, or (ii) a default that
extends beyond any applicable notice or grace period shall have occurred under
any note (other than the Notes) or the holder of any such note, or other
evidence of Indebtedness, certificate or security evidencing any such
Indebtedness or any obligee with respect to any other Indebtedness of the
Borrower or any Subsidiary of the Borrower has the right to declare any such
Indebtedness due and payable prior to its stated maturity, and, in the case of
either (i) or (ii), the Indebtedness that is the subject of (i) or (ii) is, in
the aggregate, $15,000,000 or more;

 47

 

 

(b)           Action of Governmental Authorities.  Prompt written notice of:  (i) receipt of any citation, summons,
subpoena, order to show cause or other document naming the Borrower or any
Subsidiary of the Borrower a party to any proceeding before any Governmental
Authority which could reasonably be expected to have a Material Adverse Effect
or which calls into question the validity or enforceability of any of the Loan
Documents, and include with such notice a copy of such citation, summons,
subpoena, order to show cause or other document; (ii) any lapse or other
termination of any Intellectual Property, license, permit, franchise or other
authorization issued to the Borrower or any Subsidiary of the Borrower by any
Person or Governmental Authority, which lapse or termination could reasonably
be expected to have a Material Adverse Effect; and (iii) any refusal by any
Person or Governmental Authority to renew or extend any such material
Intellectual Property, license, permit, franchise or other authorization, which
refusal could reasonably be expected to have a Material Adverse Effect;

(c)           SEC or other Governmental Reports
and Filings.  Promptly upon becoming
available, if requested by the Administrative Agent or any Lender, copies of
all regular, periodic or special reports which the Borrower or any Subsidiary
of the Borrower may now or hereafter be required to file with or deliver to any
securities exchange or the Securities and Exchange Commission, or any other
Governmental Authority succeeding to the functions thereof, pursuant to the
Securities Exchange Act of 1934, as amended.

(d)           ERISA Information.  Promptly, and in any event within ten
Business Days, after the Borrower knows or has reason to know that any of the
events or conditions enumerated below with respect to any Plan or Multiemployer
Plan has occurred or exists, a statement signed by the Chief Financial Officer
setting forth details with respect to such event or condition and the action,
if any, which the Borrower or an ERISA Affiliate proposes to take with respect
thereto; provided, however, that if such event or condition is required to be
reported or noticed to the PBGC, such statement, together with a copy of the
relevant report or notice to the PBGC, shall be furnished promptly and in any
event not later than ten days after it is reported or noticed to the PBGC:

(i)            any reportable event, as defined in
Section 4043(b) of ERISA with respect to a Plan, as to which the PBGC has not
by regulation waived the requirement of Section 4043(a) of ERISA that it be
notified within thirty days of the occurrence of such event (provided that a
failure to meet the minimum funding standard of Section 412 of the Code or of
Section 302 of ERISA, including, without limitation, the failure to make, on or
before its due date, a required installment under Section 412(m) of the Code or
Section 302(e) of ERISA or the disqualification of such Plan for purposes of
Section 4043(b)(1) of ERISA, shall be a reportable event regardless of the
issuance of any waivers in accordance with Section 412(d) of the Code) and any
request for a waiver under Section 412(d) of the Code for any Plan;

(ii)           the distribution under Section 4041
of ERISA of a notice of intent to terminate any Plan or any action taken by the
Borrower or any ERISA Affiliate to terminate any Plan;

(iii)          the institution by the PBGC of
proceedings under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan, or the receipt by the
Borrower or any ERISA Affiliate of a notice from a Multiemployer Plan that such
action has been taken by the PBGC with respect to such Multiemployer Plan;

(iv)          the complete or partial withdrawal
from a Multiemployer Plan by the Borrower or any ERISA Affiliate that results
in liability under Section 4201 or 4204 of ERISA (including the obligation to
satisfy secondary liability as a result of a purchaser default) or the receipt
of the Borrower or any ERISA Affiliate of notice from a Multiemployer Plan that
it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA
or that it intends to terminate or has terminated under Section 4041A of ERISA;

 (v)          the
institution of a proceeding by a fiduciary of any Multiemployer Plan against
the Borrower or any ERISA Affiliate to enforce Section 515 of ERISA, which
proceeding is not dismissed within thirty days from its commencement;

(vi)          the adoption of an amendment to any
Plan pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA that
would result in the loss of the tax-exempt status of the trust of which
such Plan is a part or the Borrower or any ERISA Affiliate fails to timely
provide security to such Plan in accordance with the provisions of said
Sections; and

 48
 

 

(vii)         any event or circumstance exists which
may reasonably be expected to constitute grounds for the incurrence of material
liability by the Borrower or any ERISA Affiliate under Title IV of ERISA or
under Sections 412(c)(11) or 412(n) of the Code with respect to any employee
benefit plan;

(e)           ERISA Reports.  Promptly after the request of the
Administrative Agent or any Lender, copies of each annual report filed pursuant
to Section 104 of ERISA with respect to each Plan (including, to the extent
required by Section 104 of ERISA, the related financial and actuarial
statements and opinions and other supporting statements, certifications,
schedules and information referred to in Section 103 of ERISA) and each annual
report filed with respect to each Plan under Section 4065 of ERISA; provided,
however, that in the case of a Multiemployer Plan, such annual reports shall be
furnished only if they are available to the Borrower or any ERISA Affiliate;

(f)            Notice of Sales or Transfers.  Quarterly, on each date that a Compliance
Certificate is to be delivered pursuant to Section 7.1(e), a list of all sales
or transfers of any Unencumbered Assets that occurred during such quarter;
provided that, if during any fiscal quarter of the Borrower any sale or
transfer of an Unencumbered Asset, which combined with all other such sales or
transfers of Unencumbered Assets during such fiscal quarter, would exceed
$100,000,000 in the aggregate, then the Borrower shall promptly provide such
list and a certification of the Chief Financial Officer as to the Borrower’s
compliance with Section 8.16;

(g)           Casualties or Condemnations.  Prompt written notice of any casualty or
condemnation of any Real Property, individually or together with any other
casualty or condemnation of any Real Property in the aggregate, if such
casualty or condemnation could reasonably be expected to have a Material
Adverse Effect;

(h)           Environmental Law Notices.  Prompt written notice of any order, notice,
claim or proceeding received by, or brought against, the Borrower or any
Subsidiary of the Borrower, or with respect to any of the Real Property, under
any Environmental Law, which could reasonably be expected to have a Material
Adverse Effect;

(i)            Management Letters and Reports.  If requested by the Administrative Agent,
promptly thereafter, copies of all material management letters and similar
material reports provided to the Borrower by the Accountants;

(j)            New Subsidiary Guarantors.  Notice of any Subsidiary (i) which Borrower
is adding as a Subsidiary Guarantor in the event that the Borrower and the then
current Subsidiary Guarantors contribute less than 80% of Adjusted Net
Operating Income (as further described in Section 7.11) as of the end of
any fiscal quarter of Borrower, or (ii) that has become a guarantor under any
existing or future unsecured Indebtedness of Borrower (as further described in
Section 7.11), such notice to be delivered to the Administrative Agent
concurrently with the delivery of the Compliance Certificate with respect to
such quarter;

(k)           Changes in Name or Fiscal Year.  Prompt written notice of (i) any change in
the Borrower’s name, with copies of all filings with respect to such name
change attached thereto, and (ii) any change in its fiscal year from that in
effect on the Effective Date.

(l)            Defaults or Events of Default.  Prompt written notice if there shall occur and
be continuing a Default or an Event of Default; and

(m)          Other Information.  Such other information as the Administrative
Agent or any Lender shall reasonably request from time to time.

Documents
required to be delivered pursuant to Section 7.2(c) hereunder or that are
otherwise required to be filed with the SEC and are subject to electronic
filing with the SEC may be delivered electronically and, if so delivered, shall
be deemed to have been delivered on the date (i) on which the Borrower posts
such documents, or provides a link thereto on the Borrower’s website on the
Internet at the website specified pursuant to Section 11.2; or (ii) on which
such documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access
(whether a commercial, third-party website or whether sponsored by the
Administrative Agent); provided that: (i) the Borrower shall deliver
paper copies of such documents to the Administrative Agent or any Lender that
requests the Borrower to deliver such paper copies until a

 49
 

 

written request to
cease delivering paper copies is given by the Administrative Agent or such
Lender and (ii) the Borrower shall notify the Administrative Agent and each
Lender (by telecopier or electronic mail) of the posting of any such documents
and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. 
The Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

The
Borrower hereby acknowledges that (a) the Administrative Agent and/or BAS will
make available to the Lenders materials and/or information provided by or on
behalf of the Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do
not wish to receive material non-public information with respect to the
Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that (w) all
Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent, the Arranger and the Lenders to treat such
Borrower Materials as not containing any material non-public information with
respect to the Borrower or its securities for purposes of United States Federal
and state securities laws; (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated “Public
Investor;” and (z) the Administrative Agent and BAS shall treat any Borrower
Materials that are not marked “PUBLIC” as being suitable only for posting on a
portion of the Platform not designated “Public Investor.”

7.3           Legal Existence.

(a)           Borrower’s Legal Existence.  Maintain its status as a Maryland corporation
in good standing in the State of Maryland and in each other jurisdiction in
which the failure so to do could reasonably be expected to have a Material
Adverse Effect.

(b)           Legal Existence of Subsidiaries.  Cause each Subsidiary of the Borrower to
maintain its status as a real estate investment trust, business trust,
corporation, limited liability company or partnership, as the case may be, in
good standing in its state of formation and in each other jurisdiction in which
the failure so to do could reasonably be expected to have a Material Adverse
Effect; provided, that Borrower may cause any Subsidiary (other than a
Subsidiary Guarantor or a Restricted Subsidiary, except as allowed by
Section 8.2) to be liquidated or dissolved.

7.4              Taxes.  Pay and discharge when due, and cause each
Subsidiary of the Borrower so to do, all Taxes, assessments and governmental
charges, license fees and levies upon, or with respect to, the Borrower or such
Subsidiary and all Taxes upon the income, profits and Property of the Borrower
and its Subsidiaries, which if unpaid, could reasonably be expected to have a
Material Adverse Effect, unless and to the extent only that such Taxes, assessments,
governmental charges, license fees and levies shall be contested in good faith
and by appropriate proceedings diligently conducted by the Borrower or such
Subsidiary and such contest has the effect of staying the collection of any
Lien from any Property of the Borrower or its Subsidiaries arising from such
non-payment, and provided that the Borrower shall give the Administrative
Agent prompt notice of such contest and that such reserve or other appropriate
provision as shall be required in accordance with GAAP (as determined by the
Accountants) shall have been made therefor.

7.5              Insurance.  Maintain, and cause each Subsidiary of the
Borrower to maintain, insurance on its Property against such risks and in such
amounts as is customarily maintained by Persons engaged in similar businesses
and owning similar Properties in the same general areas in which the Borrower
or the relevant Subsidiary operates, and file with the Administrative Agent
within 10 Business Days after request therefor a detailed list of such
insurance then in effect, stating the names of the carriers thereof, the policy
numbers, the insureds thereunder, the amounts of insurance, dates of expiration
thereof, and the Property and risks covered thereby, together with a
certificate of the Chief Financial Officer certifying that in the opinion of
such officer such insurance complies with the obligations of the Borrower under
this Section, and is in full force and effect.

 50
 

 

7.6              Payment of Indebtedness and
Performance of Obligations.  Pay and discharge when due, and cause each
Subsidiary of the Borrower to pay and discharge, all lawful Indebtedness,
obligations and claims for labor, materials and supplies or otherwise which, if
unpaid, could reasonably be expected to have a Material Adverse Effect, unless
such Indebtedness, obligations or claims shall be contested in good faith and
by appropriate proceedings diligently conducted by the Borrower or such
Subsidiary and such contest has the effect of staying the collection of any
Lien from any Property of the Borrower or its Subsidiaries arising from such
non-payment, and provided that the Borrower shall give the Administrative
Agent prompt notice of such contest and that such reserve or other appropriate
provision as shall be required in accordance with GAAP (as determined by the
Accountants) shall have been made therefor.

7.7              Maintenance of
Property; Environmental Investigations.

(a)           In all material respects, at all
times, maintain, protect and keep in good repair, working order and condition
(ordinary wear and tear and casualty events excepted), and cause each
Subsidiary of the Borrower so to do, all Property necessary to the operation of
the Borrower’s or such Subsidiary’s business.

(b)           In the event that the Administrative
Agent shall have a reasonable basis for believing that Hazardous Substances may
be on, at, under or around any Real Property in violation of any applicable
Environmental Law which, individually or in the aggregate could reasonably be
expected to have a Material Adverse Effect, promptly conduct and complete (at
the Borrower’s expense) all investigations, studies, samplings and testings
relative to such Hazardous Substances as the Administrative Agent may
reasonably request.

7.8           Observance of
Legal Requirements.

(a)           Observe and comply in all respects,
and cause each Subsidiary of the Borrower so to do, with all laws, ordinances,
orders, judgments, rules, regulations, certifications, franchises, permits,
licenses, directions and requirements of all Governmental Authorities, which now
or at any time hereafter may be applicable to it, except (i) where
noncompliance with any of the foregoing (individually or in the aggregate)
could not reasonably be expected to have a Material Adverse Effect, or (ii)
such thereof as shall be contested in good faith and by appropriate proceedings
diligently conducted by it and such contest has the effect of staying the
collection of any Lien from any Property of the Borrower or its Subsidiaries
arising from such noncompliance, and provided that the Borrower shall give the
Administrative Agent prompt notice of any contest with respect to clause (ii)
to the extent that noncompliance could reasonably be expected to have a
Material Adverse Effect and that such reserve or other appropriate provision as
shall be required in accordance with GAAP (as determined by the Accountants)
shall have been made therefor.

(b)           Use and operate all of its facilities
and property in compliance with all Environmental Laws and cause each of its
Subsidiaries so to do, and keep all necessary permits, approvals, certificates,
licenses and other authorizations relating to environmental matters in effect
and remain in compliance therewith and cause each of its Subsidiaries so to do,
and handle all Hazardous Materials in compliance with all applicable
Environmental Laws and cause each of its Subsidiaries so to do, except where
noncompliance with any of the foregoing (individually or in the aggregate)
could not reasonably be expected to have a Material Adverse Effect.

7.9           Inspection of Property; Books and
Records; Discussions.  Keep, and cause its Subsidiaries to keep,
proper books of record and account in which full, true and correct entries in
conformity with GAAP and all requirements of law shall be made of all dealings
and transactions in relation to its and its Subsidiaries’ business and
activities and permit representatives of the Administrative Agent and any
Lender (other than Public Lenders) during normal business hours and on
reasonable prior notice to visit its offices and its Subsidiaries’ offices, to
inspect any of its Property and any of its Subsidiaries’ Property and to
examine and make copies or abstracts from any of its and its Subsidiaries’
books and records as often as may reasonably be required under the
circumstances, and to discuss the business, operations, prospects, licenses,
Property and financial condition of the Borrower and its Subsidiaries with the
officers thereof and the Accountants. 
Borrower may have a representative accompany Administrative Agent or any
Lender on any such visit, inspection or discussion.

7.10         Licenses, Intellectual Property.  Maintain, and cause each Subsidiary of the
Borrower to maintain, in full force and effect, all licenses, franchises,
Intellectual Property, permits, authorizations and other rights as are
necessary for the conduct of its business, the loss of which could reasonably
be expected to have a Material Adverse Effect.

 51
 

 

7.11         Additional Guarantors.  At any time after the date hereof, in the
event that, during any fiscal quarter of Borrower, Borrower and the Subsidiary
Guarantors do not own Unencumbered Assets which contribute at least eighty
percent (80%) of the Adjusted Net Operating Income for all Unencumbered Assets
of the Borrower and its Subsidiaries determined on a Consolidated basis in
accordance with GAAP, then, at the time that Borrower is to provide the
Compliance Certificate with respect to such quarter to Administrative Agent,
Borrower shall cause such Subsidiaries of Borrower, as designated by the
Borrower and approved by Administrative Agent (such approval not to be
unreasonably withheld), to execute and deliver a Guaranty to the Administrative
Agent, for the benefit of the Lenders, duly executed by such Subsidiaries
(together with certificates and attachments of a nature similar to those
described in Section 5.1(b) and (c) with respect to such Subsidiaries
and an opinion of counsel of a nature similar to those in the form required
pursuant to Section 5.8 (c)) so that Borrower and the Subsidiary
Guarantors will again own Unencumbered Assets which contribute at least 80% of
the Adjusted Net Operating Income for all Unencumbered Assets of the Borrower
and its Subsidiaries on a Consolidated basis. 
Additionally, in the event that any Subsidiary of the Borrower, whether
presently existing or hereafter formed or acquired, which is not a Subsidiary
Guarantor at such time, shall after the date hereof become a guarantor under
any existing or future unsecured Indebtedness of Borrower, then promptly after
the Administrative Agent’s request therefor, Borrower shall cause such
Subsidiary to execute and deliver a Guaranty to the Administrative Agent, for
the benefit of the Lenders, duly executed by such Subsidiaries (together with
certificates and attachments of a nature similar to those described in
Section 5.1(b) and (c) with respect to such Subsidiaries and an
opinion of counsel of a nature similar to those in the form required pursuant
to Section 5.8 (c)). 
Notwithstanding the foregoing, the foregoing Adjusted Net Operating
Income for all Unencumbered Assets threshold of this Section shall not be
applicable from and after the occurrence of, and during the continuance of,
(a) an Event of Default, or (b) a reduction by S&P of its Senior
Debt Rating below BBB- or a reduction by Moody’s of its Senior Debt Rating
below Baa3 (it being understood that at such time, the Administrative Agent can
require any Subsidiary of the Borrower (other than an Excluded Subsidiary)
which has not executed a Guaranty to immediately comply with requirements of this
Section).

7.12         REIT Status;
Operation of Business.

(a)           Maintain
its status under §§856 et seq. of the
Code as a REIT.

(b)           Carry on all business operations of
the Borrower as a self-advised, self-managed REIT.

(c)           Manage, or cause one or more of its
Subsidiaries at all times to manage, at least 90% of all Properties of the
Borrower and its Subsidiaries.

(d)           Cause the common stock of Borrower at
all times to be listed for trading and to be traded on the New York Stock
Exchange, the American Stock Exchange or another nationally recognized stock
exchange.

8.             NEGATIVE
COVENANTS.

The
Borrower agrees that, so long as any Loan remains outstanding and unpaid or any
other amount is owing under any Loan Document to any Lender or the
Administrative Agent the Borrower shall not, directly or indirectly:

8.1           Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its Property, whether now owned or hereafter acquired, or
permit any Subsidiary of the Borrower so to do, except the following “Permitted
Liens”:

(a)           Liens for Taxes, assessments or
similar charges incurred in the ordinary course of business which are not
delinquent or the existence of which do not otherwise violate the covenants in
Section 7.4;

(b)           Liens in connection with workers’
compensation, unemployment insurance or other social security obligations (but
not ERISA and other types of similar statutory obligations incurred in the
ordinary course of business);

 52
 

 

(c)           Liens, deposits or pledges to secure
bids, tenders, contracts (other than contracts for the payment of money),
leases, statutory obligations, surety or appeal bonds, performance bonds,
completion bonds or other obligations of like nature arising in the ordinary
course of business upon Property other than the Account;

(d)           zoning ordinances, easements, rights
of way, use restrictions, exclusive use limitations in any lease of Real
Property, reciprocal easement agreements, minor defects, irregularities, and
other restrictions, charges or encumbrances affecting Real Property (whether or
not recorded), which (i) in the case of Real Property that does not qualify as
an Operating Property or Subject Property, do not materially adversely affect
the value of such Real Property in a manner that causes the fair market value
of such Real Property to be materially less than the book value of such Real
Property; or (ii) in the case of a Real Property that is an Operating Property
or Subject Property, materially impair such Real Property’s use for the
operation of the business of the Borrower or such Subsidiary;

(e)           statutory Liens arising by operation
of law such as mechanics’, materialmen’s, carriers’, warehousemen’s liens
incurred in the ordinary course of business which are not delinquent or the
existence of which do not otherwise violate the covenants in Section 7.6;

(f)            Liens arising out of judgments or
decrees which are being contested in accordance with Section 7.8(a) or the
existence of which do not otherwise violate the covenants in Section 7.8(a) or
result in a default pursuant to Section 9.1(j);

(g)           mortgages and related financing
statements and security agreements on Real Property and associated other
Property, provided that the existence of such mortgages, and the
Indebtedness secured thereby, does not cause the Borrower to be in violation of
Section 8.15 or 8.16;

(h)           first priority mortgages and related
financing statements and first priority security agreements on the Subject
Properties in existence on the date hereof or encumbering Real Property on or
after the date hereof which becomes a Subject Property after the date hereof
pursuant to Section 6.2 and any first priority mortgages and related financing
statements and first priority security agreements in connection with a
refinancing of any such Subject Property Indebtedness, provided that the
existence of such mortgages and the Indebtedness secured thereby does not cause
the Borrower to be in violation of Section 8.15, 8.16, 8.19 or 8.20, and
further provided, however, that prior to Borrower or any of its Subsidiaries
obtaining any such refinancing of any Collateral Interest Property, Borrower
shall provide to Administrative Agent contemporaneously with or prior to such
refinance a Compliance Certificate prepared on a proforma basis (and adjusted
in the best good faith estimate of the Borrower to give effect to such
refinance) demonstrating that after giving effect to such refinance, no Default
or Event of Default shall exist with respect to the covenants set forth in
Section 8.19 and Section 8.20;

(i)            Liens in favor of the Borrower or
any Subsidiary Guarantor upon Property other than the Collateral, the Account,
the Collateral Interest Properties, and the Borrower’s or Assignor’s direct or
indirect interests therein, provided that the Indebtedness secured by any such
Lien is held by the Borrower or such Subsidiary Guarantor;

(j)            the interests of lessees, lessors,
licensees and licensors under leases or licenses of real or personal property
made in the ordinary course of business which could not reasonably be expected
(individually or in the aggregate) to have a Material Adverse Effect;

(k)           Liens on the interests of Borrower or
any Subsidiary of Borrower in any Joint Venture (including, without limitation,
in any FIN 46 Entity) or in any Subsidiary of Borrower (other than the direct
or indirect interest of Borrower or Assignors in the Account, the Collateral or
any Restricted Subsidiary), provided that the existence of such Liens, and the
Indebtedness secured thereby, does not cause the Borrower to be in violation of
Section 8.15;

(l)            Liens under Capital Leases, provided
that the existence of such Capital Lease, and the indebtedness secured thereby,
does not cause the Borrower to be in violation of Section 8.15;

(m)          Liens in favor of the Administrative
Agent and the Lenders under the Loan Documents; and

 53
 

 

(n)           Liens upon Property not otherwise
permitted by clauses (a) through (m) of this Section which do not in the
aggregate exceed, in principal amount, $15,000,000, other than Liens on the
Collateral, the Account, the Subject Properties and the Borrower’s direct or
indirect interest therein.

8.2           Merger,
Consolidation and Certain Dispositions of Property.

(a)           Merger of Borrower or Subsidiary
Guarantor.  Consolidate with, be
acquired by, or merge into or with any Person, or sell, lease or otherwise
dispose of all or substantially all of its Property (in one transaction or a
series of transactions), or permit any Subsidiary Guarantor so to do, or
liquidate or dissolve, except, subject to the last sentence of this Section
8.2(a):

(i)            the merger or consolidation of any
Subsidiary Guarantor into or with the Borrower,

(ii)           the merger or consolidation of any
two or more Subsidiary Guarantors (including any Subsidiaries that become
Subsidiary Guarantors upon the consummation of such a transaction with a
Subsidiary Guarantor),

(iii)          the merger or consolidation of the
Borrower or a Subsidiary Guarantor with any other Person, provided that
(A) the Borrower or such Subsidiary Guarantor is the surviving entity in such
merger or consolidation, or contemporaneously with the consummation of such
transaction the surviving entity becomes a Subsidiary Guarantor, (B) the total
book value of the assets of the entity which is merged into or consolidated
with the Borrower or such Subsidiary Guarantor is less than 35% of the total book
value of the assets of the Borrower and its Subsidiaries determined on a
Consolidated basis in accordance with GAAP immediately following such merger or
consolidation, (C) immediately prior to such merger or consolidation the
Borrower shall have provided to the Administrative Agent a Compliance
Certificate prepared on a pro-forma basis (and adjusted in the best good
faith estimate of the Borrower to give effect to such merger or consolidation)
demonstrating that after giving effect to such merger or consolidation, no
Default shall exist with respect to any of the covenants set forth in Sections
8.13, 8.14, 8.15, 8.16, 8.17, 8.18, 8.19 and 8.20 (and if requested by any
Lender, Administrative Agent shall promptly forward a copy of such Compliance
Certificate to such Lender) and (D) after giving effect to such merger or
consolidation, no Event of Default shall then exist, or

(iv)          the merger or consolidation of a
Subsidiary Guarantor with any other Person in which such other Person shall be
the surviving entity, the liquidation or dissolution of a Subsidiary Guarantor,
or the sale, lease or other disposition by a Subsidiary Guarantor of all or
substantially all of its Property, so long as, after giving effect to such
transaction, (A) no Default or Event of Default shall then exist, (B) such
transaction does not violate Section 8.2(c) and (C) Borrower and/or the
Subsidiary Guarantors (including any new Subsidiary Guarantors provided by the
Borrower pursuant to Section 7.11 in connection with such transaction) own
Unencumbered Assets which contribute at least 80% of the Adjusted Net Operating
Income for all Unencumbered Assets of the Borrower and its Subsidiaries
determined on a Consolidated basis in accordance with GAAP.  In the event that a Subsidiary Guarantor
shall engage in a transaction permitted by Section 8.2(a)(iv) (other than a
lease of all or substantially all of its assets), then such Subsidiary
Guarantor shall be released by Administrative Agent from liability under the
Guaranty, provided that the Borrower shall deliver to Administrative
Agent evidence satisfactory to Administrative Agent that (1) the Borrower
will be in compliance with all covenants of this Agreement after giving effect
to such transaction and (2) the net cash proceeds from such sale or
disposition are being distributed to Borrower as part of such dissolution.

Except as set
forth in the following sentence, nothing in this Section 8.2(a) shall in any
way restrict the activities of a Subsidiary that is not a Subsidiary
Guarantor.  Notwithstanding anything
contained herein to the contrary, the Borrower shall not, directly or
indirectly, permit any merger or consolidation of any Subsidiary which owns any
Unencumbered Assets with CA New Plan Fixed Rate Partnership, L.P., any DownREIT
Partnership or any Subsidiary of a DownREIT Partnership.

(b)           Mergers of Collateral Interest
Owners.  Permit any Collateral
Interests Owner or any Subsidiary of any Collateral Interests Owner (other than
an Excluded Collateral Interests Subsidiary) or any direct or indirect

 54
 

 

owner of any
Collateral Interests Owner (other than Borrower) to consolidate with, be
acquired by, or merge into or with any Person, or sell, lease or otherwise
dispose of all or substantially all of its Property (in one transaction or a
series of transactions), or liquidate or dissolve, unless, subject to the last
sentence of this Section 8.2(b)

(i)            immediately prior to such
transaction the Borrower shall have provided to the Administrative Agent a
Compliance Certificate prepared on a pro-forma basis (and adjusted in the
best good faith estimate of the Borrower to give effect to such transaction)
demonstrating that after giving effect to such transaction and any simultaneous
transaction permitted by and in accordance with Section 6.2), no Default shall
exist with respect to the covenants set forth in Section 8.19 and Section 8.20
(and if requested by any Lender, Administrative Agent shall promptly forward a
copy of such Compliance Certificate to such Lender),

(ii)           after giving effect to such transaction,
no Event of Default shall then exist,

(iii)          such transaction does not violate
Section 8.2(d), and

(iv)          if in connection with such transaction
additional Collateral Interests are proposed to be pledged to Administrative
Agent or if Administrative Agent deems it reasonably necessary or desirable in
order to maintain, obtain and/or perfect a first priority security interest in,
or lien on, the Collateral Interests affected by such transaction which are
intended to remain Collateral Interests following such transaction, Borrower
and any applicable Subsidiary of Borrower shall have executed and delivered to
the Administrative Agent all instruments, documents, or agreements, including
an Assignment of Interests in substantially the same form as the Assignment of
Interests delivered to Administrative Agent on the date hereof, Acknowledgments
in substantially the same form as the Acknowledgments delivered to
Administrative Agent on the date hereof and Uniform Commercial Code financing
statements, as the Administrative Agent shall deem reasonably necessary or
desirable to obtain and perfect a first priority security interest in, or lien
on, such Collateral Interests, provided, however, that notwithstanding the
foregoing, in no event shall Borrower permit CA New Plan to (x) consolidate
with, be acquired by, or merge into or with any Subsidiary of Borrower that is
not a Collateral Interests Owner or a Subsidiary of a Collateral Interests
Owner (other than an Excluded Collateral Interests Subsidiary) or (y) sell, lease
or otherwise dispose of all or substantially all of its Property (in one
transaction or a series of transactions) to any Subsidiary of Borrower that is
not a Collateral Interests Owner or a Subsidiary of a Collateral Interests
Owner (other than an Excluded Collateral Interests Subsidiary).

Except as set
forth in the following sentence, nothing in this Section 8.2(b) shall in any
way restrict (A) the activities of a Subsidiary that is not a Collateral
Interests Owner, a Subsidiary of a Collateral Interests Owner or a direct or
indirect owner of any Collateral Interests Owner or (B) the activities of an
Excluded Collateral Interests Subsidiary. 
Notwithstanding anything contained herein to the contrary, the Borrower
shall not, directly or indirectly, permit any merger or consolidation of any
Subsidiary which owns any Unencumbered Assets with CA New Plan Fixed Rate
Partnership, L.P., any DownREIT Partnership or any Subsidiary of a DownREIT
Partnership.

(c)           Dispositions by Borrower and
Subsidiaries.  Except as expressly
permitted by Section 8.2(a), sell, transfer, contribute, master lease or
dispose of any of its Property, either directly or indirectly, or permit any
Subsidiary Guarantor so to do, except, subject to the last sentence of this
Section 8.2(c), that if at the time thereof and immediately after giving effect
thereto, no Default shall have occurred and be continuing:

(i)            any Subsidiary Guarantor may sell,
transfer, contribute, master lease or otherwise dispose of its assets to the
Borrower or to any other Subsidiary Guarantor,

(ii)           the Borrower may sell, transfer,
contribute, master lease or otherwise dispose of its assets (other than its
direct or indirect interests in CA New Plan, except as permitted by Section
8.2(b)) to any Subsidiary Guarantor, provided, however, that solely with
respect to transactions involving Borrower’s direct or indirect interest in a
Collateral Interests Owner, in the event that such sale, transfer,
contribution, lease or other disposition is to a Subsidiary Guarantor other
than a Collateral Interests Owner or a Subsidiary of a Collateral Interests
Owner, immediately prior to such transaction the Borrower shall have provided
to the Administrative Agent a Compliance Certificate prepared on a pro-forma
basis (and adjusted

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in the best good faith estimate of the Borrower to
give effect to such transaction) demonstrating that after giving effect to such
transaction, no Default shall exist with respect to the covenants set forth in
Section 8.19 and Section 8.20 (and if requested by any Lender, Administrative
Agent shall promptly forward a copy of such Compliance Certificate to such
Lender),

(iii)          in connection with any transaction
pursuant to which a Real Property asset of Borrower or any Subsidiary Guarantor
(other than a Collateral Interests Property, except as permitted by Section
8.2(d)) is or will be encumbered with a mortgage (as permitted under
Section 8.1(g)), the Borrower or any Subsidiary Guarantor may transfer
such asset to any Subsidiary,

(iv)          Borrower or any Subsidiary Guarantor
may sell, transfer, contribute or dispose of worn-out, obsolete or surplus
Property,

(v)           Borrower or any Subsidiary Guarantor
may sell, transfer, contribute, master lease or otherwise dispose of any of its
assets (other than its direct or indirect interests in CA New Plan, except as
permitted by Section 8.2(b)) to any Subsidiary, so long as, after giving effect
to such transaction, Borrower and/or the Subsidiary Guarantors (including any
new Subsidiary Guarantors provided by the Borrower pursuant to
Section 7.11 in connection with such transaction) own Unencumbered Assets
which contribute at least 80% of the Adjusted Net Operating Income for all
Unencumbered Assets of the Borrower and its Subsidiaries determined on a
Consolidated basis in accordance with GAAP,

(vi)          the Borrower or any Subsidiary of the
Borrower may sell, transfer, contribute, master lease or otherwise dispose of
Property in an arm’s length transaction (or, if the transaction involves an
Affiliate of the Borrower, if the transaction complies with Section 8.8),
including, without limitation, a disposition of Property pursuant to a merger
or consolidation (so long as such merger or consolidation is not prohibited by
Section 8.2(a) or Section 8.2(b)), provided, that such transaction, as with
respect to the Account, any of the Collateral, any Collateral Interests
Property or any Collateral Interests, or any direct or indirect interests
therein, is not prohibited by Section 8.2(d), and further provided, however,
that for any fiscal year of the Borrower, any sale, transfer, master lease,
contribution or other disposition of Property in reliance on this clause (vi)
which when combined with all other sales, transfers, master leases,
contributions or dispositions of Property in reliance on this clause (vi) made
in such fiscal year shall not exceed 25% of the total book value of all
Property of the Borrower and its Subsidiaries determined as of the last day of
the preceding fiscal year,

(vii)         the Borrower and its Subsidiaries may
exchange Property (other than Collateral) held by the Borrower or a Subsidiary
for one or more Properties of any Person; provided, that the Board of
Directors or Investment Committee of the Borrower has determined in good faith
that the fair market value of the assets received by the Borrower or any such
Subsidiary are approximately equal to the fair market value of the assets
exchanged by the Borrower or such Subsidiary; and

(viii)        the Borrower and its Subsidiaries may
(subject to any restrictions applicable to any of the Collateral), in the
ordinary course of business, lease Properties to tenants and dispose of
inventory acquired and held for resale.

Except as set
forth in the following sentence, nothing in this Section 8.2(c) (other than
clause (vi)) shall in any way restrict the activities of a Subsidiary that is
not a Subsidiary Guarantor . 
Notwithstanding anything contained herein to the contrary, neither the
Borrower nor any Subsidiary of the Borrower shall, directly or indirectly,
sell, transfer, contribute, master lease or dispose of any Unencumbered Assets
to CA New Plan Fixed Rate Partnership, L.P., any DownREIT Partnership or any
Subsidiary of a DownREIT Partnership other than in connection with any
transaction which is otherwise permitted pursuant to this Section 8.2(c)
pursuant to which such Unencumbered Asset will no longer constitute an
Unencumbered Asset as a result of such transaction.

(d)           Collateral Dispositions.  Except as expressly permitted by Section
8.2(a), Section 8.2(b) or Section 8.2(c), sell, transfer, contribute, master
lease or dispose of the Account, any of the Collateral, any Collateral
Interests Property or any Collateral Interests, either directly or indirectly,
or permit any Collateral Interests Owner, any Subsidiary of any Collateral
Interests Owner or any direct or indirect owner of a Collateral Interests Owner
so to do,

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except, subject to
the last sentence of this Section 8.2(d), that if at the time thereof and
immediately after giving effect thereto, no Default shall have occurred and be continuing:

(i)            any Collateral Interests Owner, any
Subsidiary of any Collateral Interests Owner or any direct or indirect owner of
a Collateral Interests Owner may sell, transfer, contribute or dispose of
worn-out or obsolete Property,

(ii)           Borrower (as with respect to any
Collateral Interests), any Collateral Interests Owner, any Subsidiary of any
Collateral Interests Owner or any direct or indirect owner of a Collateral
Interests Owner may sell, transfer, contribute, master lease or otherwise
dispose of its assets to any other Collateral Interests Owner or any other
Subsidiary of any Collateral Interests Owner, provided, however, if in
connection with such transaction 
Administrative Agent deems it reasonably necessary or desirable in order
to maintain, obtain and/or perfect a first priority security interest in, or
lien on, the Collateral Interests affected by such transaction which are
intended to remain Collateral Interests following such transaction, Borrower
and any applicable Subsidiary of Borrower shall have executed and delivered to
the Administrative Agent all instruments, documents, or agreements, including
an Assignment of Interests in substantially the same form as the Assignment of
Interests delivered to Administrative Agent on the date hereof, Acknowledgments
in substantially the same form as the Acknowledgments delivered to
Administrative Agent on the date hereof and Uniform Commercial Code financing
statements, as the Administrative Agent shall deem reasonably necessary or
desirable to obtain and perfect a first priority security interest in, or lien
on, such Collateral Interests,

(iii)          in connection with any transaction
pursuant to which a Collateral Interests Property is or will be encumbered with
a mortgage (as permitted under Section 8.1(h)), any Collateral Interests
Owner and/or any Subsidiary of any Collateral Interests Owner (other than CA
New Plan), as applicable, may transfer such asset to a newly formed direct or
indirect wholly owned Subsidiary of Borrower which is established as a special
purpose entity to own Real Property or equity interests related thereto in a
bankruptcy remote manner,

(iv)          any Collateral Interests Owner or any
Subsidiary of a Collateral Interests Owner may sell, transfer, contribute,
master lease or dispose of its assets to Borrower or a Subsidiary of Borrower,
provided that after giving effect to such transaction, no Default shall exist
with respect to the covenants set forth in Section 8.19 and Section 8.20, and

(v)           Borrower, any Collateral Interests
Owner, any Subsidiary of any Collateral Interests Owner or any direct or
indirect owner of a Collateral Interests Owner may sell, transfer, contribute,
master lease or otherwise dispose of a Collateral Interests Property or a
direct or indirect interest in a Collateral Interests Property in an arm’s
length transaction to a third party, including, without limitation, a
disposition of such Property pursuant to a merger or consolidation (so long as
such merger or consolidation is not prohibited by Section 8.2(a) or (b)),
provided that such sale, transfer, master lease contribution or other
disposition complies with Section 6.3 and Section 8.2(c)(vi).

Except as set
forth in the following sentence, nothing in this Section 8.2(d) shall in any
way restrict the activities of (x) Borrower with respect to Borrower’s assets
other than Borrower’s direct or indirect interests in the Account, any of the
Collateral, any Collateral Interests Property or any Collateral Interests or
(y) a Subsidiary that is not a Collateral Interests Owner, a Subsidiary of a
Collateral Interests Owner or a direct or indirect owner of a Collateral
Interests Owner, or (z) an Excluded Collateral Interests Subsidiary.  Notwithstanding anything contained herein to
the contrary, neither the Borrower nor any Subsidiary of the Borrower shall,
directly or indirectly, sell, transfer, contribute, master lease or dispose of
any Unencumbered Assets to CA New Plan Fixed Rate Partnership, L.P., any
DownREIT Partnership or any Subsidiary of a DownREIT Partnership other than in
connection with any transaction which is otherwise permitted pursuant to this
Section 8.2(d) pursuant to which such Unencumbered Asset will no longer
constitute an Unencumbered Asset as a result of such transaction.

8.3           Investments, Loans, Etc.  At any time, make any Investments (or permit
any of its Subsidiaries to so do), except the following (to the extent that
maintaining any thereof would not at any time violate the requirements of
Section 856(c) of the Code):

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(a)           demand deposits, certificates of
deposit, bankers acceptances and domestic and eurodollar time deposits with any
Lender, or any other commercial bank, trust company or national banking
association incorporated under the laws of the United States or any State
thereof and having undivided capital, surplus and undivided profits exceeding
$500,000,000 and a long term debt rating of A or A2, as determined,
respectively, by S&P and Moody’s;

(b)           short-term direct obligations
of the United States of America or agencies thereof whose obligations are
guaranteed by the United States of America;

(c)           securities commonly known as “commercial
paper” issued by a corporation organized and existing under the laws of the
United States or any State thereof which at the time of purchase are rated by
S&P or Moody’s at not less than “A1” or “P1,” respectively;

(d)           mortgage-backed securities
guaranteed by the Governmental National Mortgage Association, the Federal
National Mortgage Association or the Federal Home Loan Mortgage Corporation and
other mortgage-backed bonds which at the time of purchase are rated by
S&P or Moody’s at not less than “Aa” or “AA,” respectively;

(e)           repurchase agreements having a term
not greater than 90 days and fully secured by securities described in the
foregoing paragraph (b) or (d) with banks described in the foregoing paragraph
(a) or with financial institutions or other corporations having total assets in
excess of $50,000,000;

(f)            shares of “money market funds”
registered with the SEC under the Investment Company Act of 1940 which maintain
a level per-share value, invest principally in the investments described
in one or more of the foregoing paragraphs (a) through (e) and have total
assets of in excess of $50,000,000;

(g)           Real Property;

(h)           Subject to Section 8.17, equity
investments in any Person (other than Subsidiaries) and Notes Receivable
investments;

(i)            Subject to Section 8.17, Investments
(debt or equity) in Subsidiaries of the Borrower;

(j)            investments in respect of (i)
equipment, inventory and other tangible personal property or intangible
property acquired in the ordinary course of business, (ii) trade and customer
accounts receivable for services rendered in the ordinary course of business,
(iii) advances to employees for travel expenses other company-related
expenses, and (iv) prepaid expenses made in the ordinary course of business;

(k)           Hedging Agreements made in connection
with any Indebtedness;

(l)            repurchases of any common or
preferred stock or other equity interests (or securities convertible into such
interests) in the Borrower which do not exceed, in any calendar year, (i) 10%
of the aggregate outstanding shares of common and preferred stock and other
equity interests in Borrower as of the date hereof, in any combination, plus
(ii) 10% of the aggregate of any additional shares of common and preferred
stock and other equity interests in Borrower issued after the date hereof, in
any combination;

(m)          redemptions of preferred stock of the
Borrower in accordance with the terms thereof;

(n)           redemptions for cash or common Stock
of the Borrower of units of limited partner interests or limited liability
company interests in a DownREIT Partnership;

(o)           loans or advances to employees of the
Borrower, provided that all such loans in the aggregate do not at any time
exceed $25,000,000 in the aggregate;

(p)           Capital Leases; and

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(q)           subject to Section 8.17, any other
Investments not included in paragraphs (a) through (p) deemed appropriate by
the Borrower (provided that in no event shall Investments made in reliance upon
the exception set forth in this paragraph (q) exceed $75,000,000 in any fiscal
year of Borrower).

8.4           Business Changes.  Change in any material respect the nature of
the business of the Borrower and its Subsidiaries, taken as a whole, as
conducted on the Effective Date.

8.5           Amendments to Organizational
Documents.  Amend or otherwise modify its corporate
charter or by-laws in any way (other than in connection with the issuance
or classification of preferred stock of the Borrower) which would adversely
affect the interests of the Administrative Agent and the Lenders under any of
the Loan Documents, or permit any Subsidiary of the Borrower to amend its
organizational documents in a manner which could reasonably be expected to have
the same result.

8.6           Anti-Terrorism Laws; FCPA.

(a)           Be an
“enemy” or an “ally of the enemy” within the meaning of Section 2 of the
Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1
et seq.), as amended; will not
violate or permit any of its Subsidiaries to violate (i) the Trading with the
Enemy Act, as amended, (ii) any of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) or any enabling legislation or executive order relating thereto or
(iii) the  Act (as defined in Section
11.23); or

(b)           fail
to be in compliance with the Foreign Corrupt Practices Act, 15 U.S.C. §§
78dd-1, et seq., and any foreign
counterpart thereto.

8.7           Sale and Leaseback.  Enter into any arrangement with any Person
providing for the leasing by it of Property which has been or is to be sold or
transferred by it to such Person or to any other Person to whom funds have been
or are to be advanced by such Person on the security of such Property or its
rental obligations, or permit any Subsidiary of the Borrower so to do, except for
sale and leasing transactions described herein for which the combined selling
price of all Property subject to all such transactions does not exceed
$100,000,000 in any fiscal year of Borrower.

8.8           Transactions with Affiliates.  Become a party to any transaction in an
amount that exceeds $100,000 with an Affiliate (other than in connection with
Investments in Joint Ventures that are otherwise permitted hereunder and any
documents, instruments or agreements entered into with Joint Ventures pursuant
to the business of such Joint Ventures (and to the extent the other owners of
such Joint Ventures are not Affiliates of the Borrower)) unless the terms and
conditions relating thereto (a) have been approved by a majority of the
disinterested directors of the Borrower, (b) have been approved by a majority
of votes cast by the stockholders of the Borrower, or (c) are upon fair and
reasonable terms, no less favorable to the Borrower or its Subsidiaries than
would be obtained in a comparable arm’s-length transaction with a Person
not an Affiliate of the Borrower or a Subsidiary, or permit any Subsidiary of
the Borrower so to do.

8.9           Issuance of Additional Capital
Stock by Subsidiary Guarantors.  Permit any Subsidiary Guarantor to issue any
additional Stock or other equity interest of such Subsidiary Guarantor, other
than the issuance of partnership or limited liability company units in a
DownREIT Partnership which is a Subsidiary Guarantor, provided that such units
are issued in consideration of the contribution to the DownREIT Partnership of
assets qualifying as “real estate assets” under Section 856(c) of the Code.

8.10         Hedging Agreements.  Enter into, or permit any of its Subsidiaries
to enter into, any Hedging Agreement, other than Hedging Agreements entered
into in the ordinary course of business to hedge or mitigate interest rate
risks to which the Borrower or any Subsidiary of the Borrower is exposed in the
conduct of its business or the management of its liabilities.

8.11         Restricted
Payments. 
Make Restricted Payments, except that:

(a)           except as set forth in clause (b)
below, the Borrower may declare and pay dividends payable with respect to its
equity securities in any fiscal quarter of the Borrower if after giving effect
to such dividend, such

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dividend, when added
to the amount of all other such dividends paid in the same fiscal quarter and
the preceding three (3) fiscal quarters, would not exceed the greater of (i)
ninety-five percent (95%) of its Funds from Operations for the four fiscal
quarters ending prior to the quarter in which such dividend is paid or (ii) the
minimum amount of such dividends required under the Code to enable the Borrower
to continue to maintain its status under the Code as a REIT, as evidenced (in
the case of clause (ii)) by a certification of Chief Financial Officer
containing calculations in reasonable detail reasonably satisfactory in form
and substance to Administrative Agent;

(b)           if an Event of Default under Section
9.1(a) or (b) has occurred and is continuing, the Borrower may declare and pay
dividends with respect to its equity securities which shall not exceed the
minimum amount of such dividends required under the Code to enable the Borrower
to continue to maintain its status under the Code as a REIT, as evidenced by a
certification of Chief Financial Officer containing calculations in reasonable
detail reasonably satisfactory in form and substance to Administrative Agent;

(c)           the Borrower may effect Stock
repurchases and redemptions to the extent permitted by Sections 8.3(l) or 8.3(m);

(d)           the Borrower may effect “cashless
exercises” of options granted under the Borrower’s stock option plans;

(e)           the Borrower may distribute rights or
equity securities under any rights plan adopted by the Borrower; and

(f)            the Borrower may declare and pay
dividends (or effect Stock splits or reverse Stock splits) with respect to its
equity securities payable solely in additional shares of its equity securities.

8.12         Intentionally Omitted.

8.13         Fixed Charge Coverage Ratio.  Permit the Fixed Charge Coverage Ratio to be
less than 1.60:1.0 at any time.

8.14         Minimum Tangible Net Worth.  Permit the Tangible Net Worth of the Borrower
and its Subsidiaries on a Consolidated basis in accordance with GAAP at any
time to be less than the sum of (x) $1,225,000,000.00, plus (y) 80% of the
aggregate net proceeds received by the Borrower from and after the Effective
Date in connection with the issuance of any capital stock of the Borrower.

8.15         Total Indebtedness
to Total Assets; Secured Indebtedness to Total Assets.

(a)           Permit the ratio of Consolidated
Total Indebtedness to Adjusted Consolidated Total Assets, at any time, to
exceed 60%; provided, however, that up to two times during the term hereof,
such ratio of Consolidated Total Indebtedness to Adjusted Consolidated Total
Assets may, during the 180 day period following any Material Acquisition,
exceed 60%, but shall not, in any case, exceed 65%; or

(b)           Permit at any time the portion of the
Consolidated Total Indebtedness (which shall exclude Indebtedness of FIN 46 Entities
and other Joint Ventures that are not Subsidiaries) consisting of Consolidated
secured Indebtedness of Borrower and its Subsidiaries at such time to exceed
40% of Adjusted Consolidated Total Assets at such time.

8.16         Indebtedness to Unencumbered Assets
Ratio. 
Permit ratio of Consolidated Total Indebtedness consisting of
Consolidated unsecured Indebtedness of the Borrower and its Subsidiaries to
Unencumbered Asset Value to, at any time, to exceed 60%; provided, however,
that up to two times during the term hereof, such ratio of Consolidated Total
Indebtedness consisting of Consolidated unsecured Indebtedness of the Borrower
and its Subsidiaries to Unencumbered Asset Value may, during any 180 day period
following any Material Acquisition, exceed 60%, but shall not, in any case,
exceed 65%.

8.17         Maximum Book Value of Ancillary
Assets. 
Permit the book value of the Ancillary Assets at any time to be more
than 25% of the Adjusted Consolidated Total Assets of the Borrower and its
Subsidiaries

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determined on a
Consolidated basis in accordance with GAAP at such time.  For purposes of this Section 8.17 the book
value of any Ancillary Asset not owned 100%, directly or indirectly, by the
Borrower or any of its Subsidiaries shall be adjusted by multiplying the same
by the Borrower’s Interest in such Ancillary Asset during the fiscal quarter of
the Borrower ending as of any date of determination of such book value.

8.18         Development Activity.  Engage, directly or indirectly, or permit any
Subsidiary or Joint Venture to engage, in the ground-up development of Real
Property except for the ground-up development of New Construction Assets to be
used principally as a retail shopping center, provided that the cost of New
Construction Assets by Borrower and its Subsidiaries and Joint Ventures shall
not at any time exceed fifteen percent (15%) of the Borrower’s Adjusted
Consolidated Total Assets.  For purposes
of this Section 8.18 the book value of any New Construction Assets not
owned 100%, directly or indirectly, by the Borrower or any of its Subsidiaries
shall be adjusted by multiplying the same by the Borrower’s Interest in such
New Construction Asset during the fiscal quarter of the Borrower ending as of
any date of determination of such book value.

8.19         Debt Service Coverage.  Permit the aggregate Subject Property
Adjusted Net Operating Income for the prior twelve (12) months to be less than
1.4 times the Implied Debt Service of the Borrower and the Subject Property
Owners for such period.

8.20         Restricted Interests Ratio.  Permit at any time the outstanding principal
balance of the Loans to exceed 66 2/3% of the difference between the portion of
Subject Property Adjusted Consolidated Total Assets attributable to Collateral
Interests Properties and the aggregate Subject Property Indebtedness
attributable to Collateral Interests Properties.

9.             DEFAULT.

9.1           Events of Default.  The following shall each constitute an “Event
of Default”:

(a)           The failure of the Borrower to pay
any installment of principal on any Note on the date when due and payable; or

(b)           The failure of the Borrower to pay
any installment of interest or any other fees, expenses or other charges
payable under any Loan Document within five Business Days of the date when due
and payable; or

(c)           The use of the proceeds of any Loan
in a manner inconsistent with or in violation of Section 2.15; or

(d)           The failure of the Borrower to
observe or perform any covenant or agreement contained in Section 7.12(a),
7.12(b), or 8 (other than Sections 8.1, 8.3, 8.5,
8.7, 8.8, 8.10, 8.19 and 8.20 as to which
the provisions of paragraph (e) below shall apply); or

(e)           The failure of Borrower or any of its
Subsidiaries to observe or perform any other term, covenant, or agreement
contained in any Loan Document and such failure shall have continued unremedied
for a period of 30 days after notice thereof from the Administrative Agent to
the Borrower, provided that, with respect to any such term, covenant or
agreement other than those contained in Section 8.19 and 8.20, if
Borrower shall have exercised reasonable diligence to cure such failure and
such failure cannot be cured within such 30 day period despite such reasonable
diligence, Borrower shall have the right to cure such failure within 90 days
after the date of such notice from Administrative Agent provided Borrower
diligently and continuously pursues the completion of such cure (unless any
such default is excluded from any provision of a grace period or cure of
defaults contained in any other Loan Document or unless a shorter cure period
is specified in any other Loan Document with respect to such default); or

(f)            Any representation or warranty of
the Borrower or any of its Subsidiaries (or of any officer of the Borrower or
any of its Subsidiaries on their behalf) made in any Loan Document to which it
is a party or in any certificate, report, opinion (other than an opinion of
counsel) or other document delivered or to be delivered pursuant thereto, shall
prove to have been incorrect or misleading (whether because of misstatement or
omission) in any material respect when made; or

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(g)           Any obligation of the Borrower (other
than its obligations under the Notes) or any Subsidiary of the Borrower,
whether as principal, guarantor, surety or other obligor, for the payment of
any Indebtedness shall (i) become or shall be declared to be due and payable
prior to the expressed maturity thereof, or (ii) shall not be paid when due or
within any grace period for the payment thereof, or (iii) shall be subject, by
the holder of the obligation evidencing such Indebtedness, to acceleration
(after the expiration of any applicable notice and cure periods) prior to the
expressed maturity thereof, and the sum of all such Indebtedness which is the
subject of paragraphs (i) - (iii) inclusive exceeds (A) at any time, in
the case of Indebtedness other than Non-Recourse Indebtedness,
$15,000,000, and (B) in any calendar year, in the case of Non-Recourse
Indebtedness, $50,000,000 in the aggregate during such year;  or

(h)           The Borrower or any Subsidiary of the
Borrower shall (i) suspend or discontinue its business (except as permitted by
Section 7.3 or 8.2), (ii) make an assignment for the benefit of creditors,
(iii) generally not be paying its debts as such debts become due, (iv) admit in
writing its inability to pay its debts as they become due, (v) file a voluntary
petition in bankruptcy, (vi) become insolvent (however such insolvency shall be
evidenced), (vii) file any petition or answer seeking for itself any
reorganization, arrangement, composition, readjustment of debt, liquidation or
dissolution or similar relief under any present or future statute, law or
regulation of any jurisdiction, (viii) petition or apply to any tribunal for
any receiver, custodian or any trustee for any substantial part of its
Property, (ix) be the subject of any such proceeding filed against it which
remains undismissed for a period of 60 days, (x) file any answer admitting or
not contesting the material allegations of any such petition filed against it
or any order, judgment or decree approving such petition in any such
proceeding, (xi) seek, approve, consent to, or acquiesce in any such
proceeding, or in the appointment of any trustee, receiver, custodian,
liquidator, or fiscal agent for it, or any substantial part of its Property, or
an order is entered appointing any such trustee, receiver, custodian,
liquidator or fiscal agent and such order remains in effect for 60 days, or
(xii) take any formal action for the purpose of effecting any of the foregoing;
provided that the events described in this Section 9.1(h) as to any Subsidiary
of the Borrower that is not a Subsidiary Guarantor, shall not constitute an
Event of Default unless the aggregate book value of Borrower’s direct or
indirect equity Investment in all such Subsidiaries exceeds $50,000,000; or

(i)            An order for relief is entered under
the United States bankruptcy laws or any other decree or order is entered by a
court having jurisdiction (i) adjudging the Borrower or any Subsidiary bankrupt
or insolvent, (ii) approving as properly filed a petition seeking
reorganization, liquidation, arrangement, adjustment or composition of or in
respect of the Borrower or any Subsidiary under the United States bankruptcy
laws or any other applicable Federal or state law, (iii) appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) of the Borrower or any Subsidiary or of any substantial part of the
Property thereof, or (iv) ordering the winding up or liquidation of the affairs
of the Borrower or any Subsidiary, and any such decree or order continues
unstayed and in effect for a period of 60 days; provided that the events
described in this Section 9.1(i) as to any Subsidiary of the Borrower that is
not a Subsidiary Guarantor, shall not constitute an Event of Default unless the
aggregate book value of Borrower’s direct or indirect equity Investment in all
such Subsidiaries exceeds $50,000,000; or

(j)            Judgments or decrees against the
Borrower, any Subsidiary of the Borrower, the Collateral or any of the Subject
Properties not covered by insurance aggregating in excess of $15,000,000 shall
not be paid, stayed on appeal, discharged, bonded or dismissed for a period of
45 days; or

(k)           Any Loan Document shall cease, for
any reason (other than in accordance with its terms), to be in full force and
effect, or the Borrower or any Assignor shall so assert in writing or shall
disavow any of its obligations thereunder; or

(l)            An event or condition specified in
Section 7.2(d) shall occur or exist with respect to any Plan or Multiemployer
Plan and, as a result of such event or condition, together with all other such
events or conditions, the Borrower shall be reasonably likely to incur a
liability to a Plan, a Multiemployer Plan, the PBGC, or any combination
thereof, equal to or in excess of $15,000,000 individually or in the aggregate;
or

(m)          There shall occur a Change of Control;
or

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(n)           If any Loan Document (i) is
determined by any court or Governmental Authority to be illegal, invalid or
unenforceable in accordance with its terms, or (ii) shall be canceled,
terminated, revoked or rescinded other than in accordance with its terms or
with the written consent or approval of the Lenders; or

(o)           Any Subsidiary Guarantor shall fail
to comply in any material respect with any covenant made by it in the Guaranty
or if at any time any representation or warranty made by any Subsidiary
Guarantor in the Guaranty or in any other document, statement or writing made
to the Administrative Agent, BAS or the Lenders shall prove to have been
incorrect or misleading in any material respect when made, or (ii) if a default
by any Subsidiary Guarantor shall occur under the Guaranty after the expiration
of any applicable notice and grace period; or (iii) if any Subsidiary Guarantor
shall revoke or attempt to revoke, contest, commence any action or raise any
defense (other than the defense of payment) against its obligations under the
Guaranty; or

(p)           There shall occur and be continuing
an Event of Default under and as defined in the Existing Credit Agreement.

Upon
the occurrence of an Event of Default or at any time thereafter during the
continuance thereof, (a) if such event is an Event of Default specified in
clause (h) or (i) above, the Loans, all accrued and unpaid interest thereon,
and all other amounts owing under the Loan Documents shall immediately become
due and payable, and the Administrative Agent may, and upon the direction of
the Required Lenders shall, exercise any and all remedies and other rights
provided in the Loan Documents, and (b) if such event is any other Event of
Default with the consent of the Required Lenders, the Administrative Agent may,
and upon the direction of the Required Lenders shall, by notice of default to
the Borrower, declare the Loans, all accrued and unpaid interest thereon and
all other amounts owing under the Loan Documents to be due and payable
forthwith, whereupon the same shall immediately become due and payable, and the
Administrative Agent may, and upon the direction of the Required Lenders shall,
exercise any and all remedies and other rights provided pursuant to the Loan
Documents.  Except as otherwise provided
in this Section, presentment, demand, protest and all other notices of any kind
are hereby expressly waived.  The
Borrower hereby further expressly waives and covenants not to assert any
appraisement, valuation, stay, extension, redemption or similar laws, now or at
any time hereafter in force which might delay, prevent or otherwise impede the
performance or enforcement of any Loan Document.

In the
event that the Notes shall have been declared due and payable pursuant to the
provisions of this Section, any funds received by the Administrative Agent and
the Lenders from or on behalf of the Borrower, or otherwise with respect to the
realization upon the Collateral, shall be applied by the Administrative Agent
and the Lenders in liquidation of the Loans and the obligations of the Borrower
under the Loan Documents in the following manner and order:  (i) first, to the payment of interest on and
then the principal portion of any Loans which the Administrative Agent may have
advanced on behalf of any Lender (including, without limitation, any protective
advances or other advances in respect of the Collateral) for which the
Administrative Agent has not then been reimbursed by such Lender or the
Borrower; (ii) second, to reimburse the Administrative Agent and the Lenders
for any expenses due from the Borrower pursuant to the provisions of Section
11.5; (iii) third, to the payment of all other fees, expenses and amounts
due under the Loan Documents (other than principal and interest on the Notes);
provided, however, that distributions in respect of such fees and expenses due
to the Administrative Agent from the Borrower shall be made pari passu with
respect to the payment of any other fees, expenses or amounts due the Lenders
from the Borrower; (iv) fourth, to the payment of interest due on the Notes;
(v) fifth, to the payment of principal outstanding on the Notes; and (vi)
sixth, to the payment of any other amounts owing to the Administrative Agent,
BAS and the Lenders under any Loan Document or other document or agreement
entered into in connection with the transactions contemplated thereby.

9.2           Default under Subject Property
Loan Documents. 
The Borrower hereby expressly agrees that upon the occurrence and during
the continuation of an Event of Default, the Administrative Agent shall have
the right, but not the obligation, to pay any sums or to take any action, to
the extent that the applicable Subject Property Owner is permitted to take such
action under the terms of the Collateral Property Loan Documents, which the
Administrative Agent deems necessary or advisable to cure any “Default” (as
defined in the applicable Subject Property Loan Documents, or if not defined
therein, the word or phrase used therein having similar meaning) or alleged “Default”
under the Subject Property Loan Documents (whether or not the Subject Property
Owners are undertaking efforts to cure such “Default” or the same is an “Event
of Default” (as defined in the applicable Subject Property Loan Documents, or
if not defined therein, the word or phrase used therein having similar meaning)
under

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the Subject
Property Loan Documents or a Default or Event of Default), and such payment or
such action is hereby authorized by the Borrower, and any sum so paid and any
expense incurred by the Administrative Agent in taking any such action shall be
evidenced by this Agreement and secured by the Security Documents and shall be
immediately due and payable by Borrower to the Administrative Agent with
interest at the rate for overdue amounts set forth in Section 2.9(b) until
paid.  The Administrative Agent shall be
authorized to take such actions upon the assertion by any holder of any of the
Subject Property Loan Documents of the existence of such “Default” or “Event of
Default” without any duty to inquire or determine whether such “Default” or “Event
of Default” exist.  The Borrower shall
cause the Subject Property Owners to permit the Administrative Agent to enter
upon the Subject Properties for the purpose of curing any “Default” or alleged “Default”
under the Subject Property Loan Documents or hereunder.  The Borrower hereby transfers and assigns any
excess proceeds arising from any foreclosure or sale under power pursuant to
the Subject Property Loan Documents, and the Borrower hereby authorizes and
directs the holder or holders of the Subject Property Loan Documents to pay
such excess proceeds directly to the Administrative Agent up to the amount of the
obligations owed to the Administrative Agent and the Lenders under the Loan
Documents.

10.           THE AGENT.

10.1         Appointment and
Authority. 
Each of the Lenders hereby irrevocably appoints Bank of America to act
on its behalf as the Administrative Agent hereunder and under the other Loan
Documents and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto.  Except as
provided in Section 10.8 and 10.12, the provisions of this Article are solely
for the benefit of the Administrative Agent and the Lenders, and neither the
Borrower nor any Subsidiary Guarantor shall have rights as a third party
beneficiary of any of such provisions.

10.2         Rights as a Lender.  The Person serving as the Administrative
Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept
deposits from, lend money to, act as the financial advisor or in any other
advisory capacity for and generally engage in any kind of business with the
Borrower or any Subsidiary or other Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor
to the Lenders.

10.3         Exculpatory Provisions.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the
generality of the foregoing, the Administrative Agent:

(a)           shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing;

(b)           shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

(c)           shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by
the Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as

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the Administrative
Agent shall believe in good faith shall be necessary, under the circumstances
as provided in Sections 11.1 and 9.1) or (ii) in the absence of
its own gross negligence or willful misconduct.

The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (ii) the contents of
any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article V or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.  To the extent any
Lender requests any materials or information provided to the Administrative
Agent by the Borrower pursuant to the terms hereof, the Administrative Agent
shall make reasonable good faith efforts to deliver such materials or information
to such Lender promptly following such request.

10.4         Reliance by Administrative Agent.

The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying in good faith upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any
electronic message, Internet or intranet website posting or other distribution)
believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. 
In determining compliance with any condition hereunder to the making of
a Loan, that by its terms must be fulfilled to the satisfaction of a Lender,
the Administrative Agent may presume that such condition is satisfactory to
such Lender unless the Administrative Agent shall have received notice to the contrary
from such Lender prior to the making of such Loan.  The Administrative Agent may consult with
legal counsel, independent accountants and other experts selected by it, and
shall not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

10.5         Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Lenders, unless the Administrative Agent has received written notice thereof
from a Lender or the Borrower.  In the
event that the Administrative Agent receives such a notice, the Administrative
Agent shall promptly give notice thereof to the Lenders.  The Administrative Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders, provided, however, that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem to be in the best interests of the Lenders.

10.6         Delegation of Duties.  The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Documents by or through its Related Parties.  The exculpatory provisions of this Article
shall apply to any such Related Parties of the Administrative Agent and shall
apply to any such Related Parties’ activities in connection with the
syndication of the loans provided for herein as well as activities as
Administrative Agent.

10.7         Indemnification.  Each Lender agrees to indemnify and reimburse
the Administrative Agent in its capacity as such (to the extent not promptly
reimbursed by the Borrower and without limiting the obligation of the Borrower
to do so), pro rata according to its Commitment, from and against any and all
liabilities, obligations, claims, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever
including, without limitation, any amounts paid to the Lenders (through the
Administrative Agent) by the Borrower, any Subsidiary Guarantor pursuant to the
terms of the Loan Documents, that are subsequently rescinded or avoided, or
must otherwise be restored or returned) which may at any time (including,
without limitation, at any time following the payment of the Notes) be imposed
on, incurred by or asserted against the Administrative Agent in any way
relating to or arising out of the Loan Documents or any other documents contemplated
by or referred to therein or the transactions contemplated thereby or any
action taken or omitted to be

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taken by the
Administrative Agent under or in connection with any of the foregoing;
provided, however, that no Lender shall be liable for the payment of any
portion of such liabilities, obligations, claims, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements to the extent
resulting solely from the gross negligence or willful misconduct of the
Administrative Agent.  The agreements in
this Section shall survive the payment of all amounts payable under the Loan
Documents.

10.8         Successor Administrative Agent.  The Administrative Agent may at any time give
notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with
the Borrower, to appoint a successor, which shall be a bank with an office in
the United States, or an Affiliate of any such bank with an office in the
United States.  If no such successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment in writing within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
shall, in consultation with the Borrower, appoint a successor Administrative
Agent on behalf of the Lenders prior to the end of the 60th day from such
notice from among any of the Lenders who shall have at such time agreed to act
as the successor Administrative Agent and shall have at such time a Commitment
of at least $10,000,000 (an “Approved Successor”).  If no Lender has a Commitment of at least
$10,000,000 (or no Lender whose Commitment is at least $10,000,000 shall agree
to accept such appointment), then the retiring Administrative Agent shall, in
consultation with the Borrower (unless an Event of Default has occurred and is
continuing), appoint any other Lender or any other commercial bank organized
under the laws of the United States of America or any State thereof and having
a combined capital and surplus of at least $100,000,000 as a successor
Administrative Agent.  Any appointment of
a successor Administrative Agent shall be subject to the approval of the
Borrower, which approval shall not be unreasonably withheld or delayed, and
shall be given in any event prior to the end of the 60th day from the date of
the retiring Administrative Agent’s notice of removal or resignation, provided
that during any period in which there exists and is continuing an Event of
Default, no consultation with, or approval from, the Borrower with respect to
the appointment of an Approved Successor shall be required.  Upon the acceptance of an appointment as Administrative
Agent hereunder by a successor Administrative Agent and any required approval
of such successor Administrative Agent by the Borrower in accordance with the
terms of this Section, such successor Administrative Agent shall thereupon
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom
as provided above in this Section).  The
fees payable by the Borrower to a successor Administrative Agent shall be the
same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor.  The
Required Lenders may remove the Administrative Agent from its capacity as
administrative agent in the event of the Administrative Agent’s willful
misconduct or gross negligence.  Such
removal shall be effective upon appointment and acceptance of a successor
Administrative Agent selected by the Required Lenders.  Any successor Administrative Agent must
satisfy the conditions set forth in this Section 10.8 (including, without
limitation, the consultation with, and approval from, the Borrower, to the
extent required under this Section 10.8). 
Upon the acceptance of any appointment as Administrative Agent hereunder
by a successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all rights, powers, privileges and
duties of the removed Administrative Agent, and the removed Administrative
Agent shall be discharged from all further duties and obligations as
Administrative Agent under this Agreement and the Loan Documents, provided that
the Administrative Agent shall remain liable to the extent provided in the Loan
Documents for its acts and omissions occurring prior to such removal.  The Commitment of the Lender which is acting
as Administrative Agent shall not be taken into account in the calculation of
Required Lenders for the purposes of removing Administrative Agent in the event
of the Administrative Agent’s willful misconduct or gross negligence.  After the retiring or removed Administrative
Agent’s resignation or removal hereunder and under the other Loan Documents,
the provisions of this Article and Sections 11.5 and 11.12 shall
continue in effect for the benefit of such retiring or removed Administrative
Agent, its sub agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while the retiring or
removed Administrative Agent was acting as Administrative Agent.

10.9         Non-Reliance on Administrative Agent
and Other Lenders.  Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any other Loan Document
or any related agreement or any document furnished hereunder or thereunder.

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10.10       No Other Duties, Etc.  Anything herein to the contrary
notwithstanding, none of the Book Manager, Joint Lead Arrangers and/or
Documentation Agent listed on the cover page hereof shall have any powers,
duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent
or a Lender hereunder.

10.11       Administrative Agent May File Proofs
of Claim. 
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Borrower or any Subsidiary Guarantor, the
Administrative Agent (irrespective of whether the principal of any Loan shall
then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on
the Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans and all other obligations of the Borrower and the Subsidiary Guarantors
under the Loan Documents that are owing and unpaid and to file such other
documents as may be necessary or advisable in order to have the claims of the
Lenders and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lenders and the Administrative Agent under Sections  3.1,
11.5 and 11.12) allowed in such judicial proceeding; and

(b)           to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 3.1, 11.5 and 11.12.

Nothing contained
herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
obligations of the Borrower and the Subsidiary Guarantors under the Loan
Documents or the rights of any Lender or to authorize the Administrative Agent
to vote in respect of the claim of any Lender in any such proceeding.

10.12       Collateral and Guaranty Matters.  The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion,

(a)           to release any Lien on any property
granted to or held by the Administrative Agent under any Loan Document (i) upon
termination of the Total Commitment Amount and payment in full of all
obligations of the Borrower and the Subsidiary Guarantors under the Loan
Documents (other than contingent indemnification obligations), (ii) that is
sold or to be sold as part of or in connection with any sale permitted
hereunder or under any other Loan Document, (iii) if the Loan Documents
otherwise permit such release, or (iv) subject to Section 11.1, if
approved, authorized or ratified in writing by the Required Lenders; and

(b)           to release any Subsidiary Guarantor
from its obligations under the Guaranty if (i) such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder, or (ii) the
Borrower otherwise requests such release and provides evidence satisfactory to
the Administrative Agent that after giving effect to such release the Borrower
will be in compliance with all covenants under this Agreement, including,
without limitation, the obligations under Section 7.11.

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Upon
request by the Administrative Agent at any time, the Required Lenders will
confirm in writing the Administrative Agent’s authority to release its interest
in particular types or items of property, or to release any Subsidiary
Guarantor from its obligations under the Guaranty pursuant to this Section 10.12.

11.           OTHER PROVISIONS.

11.1         Amendments and Waivers.  With the written consent of the Required
Lenders, the Administrative Agent and the Borrower may, from time to time,
enter into written amendments, supplements or modifications of the Loan
Documents and, with the consent of the Required Lenders, the Administrative
Agent on behalf of the Lenders may execute and deliver to any such parties a
written instrument waiving or a consent to a departure from, on such terms and
conditions as the Administrative Agent may specify in such instrument, any of
the requirements of the Loan Documents or any Default or Event of Default and
its consequences; provided, however, that no such amendment, supplement,
modification, waiver or consent shall, without the consent of all of the
Lenders:  (a) extend the Maturity Date;
(b) decrease the rate, or extend the time of payment, of interest of, or change
or forgive the principal amount of, or change the requirement that payments and
prepayments of principal on, and payments of interest on, the Notes be made pro
rata to the Lenders on the basis of the outstanding principal amount of the
Loans, (c) amend the definitions of “Required Lender”, (d) amend any provision
of this Agreement or the Loan Documents which requires the approval of all of
the Lenders or the Required Lenders to require a lesser number of Lenders to
approve such action, (e) release any Subsidiary Guarantor or Assignor from its
obligations under a Guaranty or the Assignment of Interests except as provided
in Sections 8.2 or 10.12, (f) release any of the Collateral except as provided
in Section 6.2, 6.3 or 8.2, or (g) reduce any fee payable for the account of
the Lenders pursuant to Section 3.1 or change the provisions of this Section
11.1; and provided further that no such amendment, supplement, modification,
waiver or consent shall amend, modify, waive or consent to a departure from any
provision of Section 10 or otherwise change any of the rights or obligations of
the Administrative Agent under the Loan Documents without the written consent
of the Administrative Agent.  In
addition, no Commitment of any Lender may be increased or decreased without the
approval of such Lender except, with respect to decreases of a Lender’s
Commitment, in connection with a pro rata reduction of the Total Commitment
Amount in accordance with the terms of this Agreement.  The Administrative Agent shall cause a copy
of each written request for such an amendment, supplement or modification
delivered by the Borrower to it to be delivered to each Lender.  Any such amendment, supplement, modification,
waiver or consent shall apply equally to each of the Lenders and shall be
binding upon the parties to the applicable agreement, the Lenders, the
Administrative Agent and all future holders of the Notes.  In the case of any waiver, the parties to the
applicable agreement, the Lenders and the Administrative Agent shall be
restored to their former position and rights under the Loan Documents, and any
Default or Event of Default waived shall not extend to any subsequent or other
Default or Event of Default, or impair any right consequent thereon.  Notwithstanding anything contained herein to
the contrary, no Defaulting Lender shall have the right to approve or
disapprove any amendment, waiver or consent hereunder, except that the
Commitment of such Lender may not be increased or extended without the consent
of such Lender.

11.2         Notices.

(a)  Notices Generally.  Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in
subsection (b) below), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopier as
follows, and all notices and other communications expressly permitted hereunder
to be given by telephone shall be made to the applicable telephone number, as
follows:

(i)            if to the Borrower or the Administrative
Agent, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 11.2; and

(ii)           if to any other Lender, to the
address, telecopier number, electronic mail address or telephone number specified
in its Administrative Questionnaire.

Notices sent by
hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier
shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at
the opening of

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business on the
next business day for the recipient). 
Notices delivered through electronic communications to the extent provided
in subsection (b) below, shall be effective as provided in such subsection (b).

(b)           Electronic Communications.  Notices and other communications to the
Lenders hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent, provided that the
foregoing shall not apply to notices to any Lender pursuant to Section 2 if
such Lender has notified the Administrative Agent that it is incapable of
receiving notices under such Section by electronic communication.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

Unless the
Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address
therefor.

(c)           The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER
MATERIALS OR THE PLATFORM.  In no event
shall the Administrative Agent or any of its Related Parties (collectively, the
“Agent Parties”) have any liability to the Borrower, any Lender or any other
Person for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of the Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet,
except to the extent that such losses, claims, damages, liabilities or expenses
are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to the Borrower, any Lender or
any other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).

(d)           Change of Address, Etc.  Each of the Borrower and the Administrative
Agent may change its address, electronic mail address, telecopier or telephone
number for notices and other communications hereunder by notice to the other
parties hereto.  Each Lender may change
its address, electronic mail address, telecopier or telephone number for
notices and other communications hereunder by notice to the Borrower and the
Administrative Agent.  In addition, each
Lender agrees to notify the Administrative Agent from time to time to ensure
that the Administrative Agent has on record (i) an effective address, contact
name, telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

(e)           Reliance by Administrative Agent
and Lenders.  The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices purportedly given by or on behalf of the Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms thereof, as understood by the recipient, varied from any confirmation
thereof.  The Borrower shall indemnify
the Administrative Agent, each Lender and the Related Parties of each of them
from all losses, costs, expenses and liabilities resulting from the reliance by
such Person on each notice purportedly given by or on behalf of the
Borrower.  All telephonic notices to and
other telephonic communications with the Administrative Agent may be recorded
by the Administrative Agent, and each of the parties hereto hereby consents to
such recording.

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

11.4         Survival of Representations and
Warranties. 
All representations and warranties made hereunder and in any other Loan
Document or other document delivered pursuant hereto or thereto or in
connection herewith or therewith shall survive the execution and delivery
hereof and thereof.  Such representations
and warranties have been or will be relied upon by the Administrative Agent and
each Lender, regardless of any investigation made by the Administrative Agent
or any Lender or on their behalf and notwithstanding that the Administrative
Agent or any Lender may have had notice or knowledge of any Default at the time
of the making of any Loan, and shall continue in full force and effect as long
as any Loan or any other obligation of the Borrower, any Subsidiary Guarantor
or any of their respective Subsidiaries or Affiliates hereunder shall remain
unpaid or unsatisfied.

11.5         Payment of Expenses and Taxes.  The Borrower agrees, promptly upon
presentation of a statement or invoice therefor, and whether any Loan is made
(a) to pay or reimburse Bank of America, Administrative Agent and BAS for all
of their reasonable out-of-pocket costs and expenses reasonably
incurred in connection with the development, preparation, negotiation and
execution of, the Loan Documents, the syndication of the loan transaction
evidenced by this Agreement (whether or not such syndication is completed) and
any amendment, supplement or modification hereto (whether or not executed), any
documents prepared in connection therewith and the consummation of the
transactions contemplated thereby, including, without limitation, the
reasonable fees and disbursements of Special Counsel, (b) to pay or reimburse
each Credit Party for all of its respective reasonable costs and expenses,
including, without limitation, reasonable fees and disbursements of counsel, reasonably
incurred in connection with (i) any enforcement or collection proceedings
resulting from any Event of Default (including, without limitation, any
reasonable costs incurred after the entry of judgment in an attempt to collect
money due in the judgment) or in connection with the negotiation of any
restructuring or “work-out” (whether consummated or not) of the
obligations of the Borrower under any of the Loan Documents, (ii) any UCC
searches, UCC filings, title rundowns, title searches and document recordings
and (iii) the enforcement of this Section, (c) to pay, indemnify, and hold each
Credit Party harmless from and against, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any delay in
paying, stamp, excise and other similar taxes, if any, which may be payable or
determined to be payable in connection with the execution, recording, filing,
and delivery of, or consummation of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, the Loan Documents and any such other documents, and (d) to pay,
indemnify and hold each Credit Party and each of their respective officers,
directors, employees, affiliates, agents, controlling persons and attorneys (as
used in this Section, each an “indemnified person”) harmless from and
against any and all other liabilities, obligations, claims, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
or nature whatsoever (including, without limitation, reasonable counsel fees
and disbursements) with respect to any claim, investigation or proceeding from
any third party relating to this Agreement, the Loan Documents, the Collateral,
Hazardous Substances or the Subject Properties, including the enforcement and
performance of the Loan Documents and the use of the proceeds of the Loans (all
the foregoing, collectively, the “indemnified liabilities”), whether or
not any such indemnified person is a party to this Agreement or the Loan
Documents, and to reimburse each indemnified person for all reasonable legal
and other expenses incurred in connection with investigating or defending any
indemnified liabilities, and, if and to the extent that the foregoing indemnity
may be unenforceable for any reason, the Borrower agrees to make the maximum
payment permitted or not prohibited under applicable law; provided, however,
that the Borrower shall have no obligation hereunder to pay indemnified
liabilities to any Credit Party arising from (x) the gross negligence or
willful misconduct of such Credit Party or (y) disputes solely between the
Credit Parties and which are not related to any act or failure to act on the
part of the Borrower or the failure of the Borrower to perform any of its
obligations under this Agreement or the Loan Documents.

Notwithstanding
the foregoing, the fees and expenses referred to in clause (d) of the preceding
paragraph shall not be payable by the Borrower if (1) any such enforcement
action brought by such Credit Party is dismissed, with prejudice, on the
pleadings or pursuant to a motion made by the Borrower for summary judgment,
and (2) if

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such Credit Party
appeals such dismissal, such dismissal is affirmed and the time for any further
appeals has expired.  The obligations of
the Borrower under this Section shall survive the termination of this Agreement
and the Commitments and the payment of the Notes and all other amounts payable
under the Loan Documents.

11.6         Lending Offices.  Each Lender shall have the right at any time
and from time to time to transfer its Loans to a different office, provided
that such Lender shall promptly notify the Administrative Agent and the
Borrower of any such change of office. 
Such office shall thereupon become such Lender’s Domestic Lending Office
or LIBOR Lending Office, as the case may be; provided, however, that no such
Lender shall be entitled to receive any greater amount under Section 2.13, 2.14
or 2.16 as a result of a transfer of any such Loans to a different office of
such Lender than it would be entitled to immediately prior thereto unless such
claim would have arisen even if such transfer had not occurred.

11.7         Successors
and Assigns.

(a)           Successors and Assigns Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that neither the
Borrower nor any Subsidiary Guarantor may assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible
Assignee in accordance with the provisions of subsection (b) of this Section,
(ii) by way of participation in accordance with the provisions of subsection
(d) of this Section, (iii) by way of pledge, assignment or grant of a security
interest subject to the restrictions of subsection (f) of this Section or (iv)
to an SPC in accordance with the provisions of subsection (j) of this Section
(and any other attempted assignment or transfer by any party hereto shall be
null and void).  Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related Parties of
each of the Administrative Agent, and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b)           Assignments by Lenders.  Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Loans at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

(i)            Minimum Amounts.

(A)          in the case of an assignment of the
entire remaining amount of the assigning Lender’s Loans at the time owing to it
or in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, no minimum amount need be assigned; and

(B)           in any case not described in
subsection (b)(i)(A) of this Section, the aggregate amount of the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent or, if “Trade
Date” is specified in the Assignment and Assumption, as of the Trade Date,
shall not be less than $5,000,000 (or such
amount plus a whole multiple of $1,000,000 in excess thereof) unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single assignee
(or to an assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met.

(ii)           Proportionate Amounts.  Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans assigned.

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(iii)          Required Consents.  No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section and, in
addition:

(A)          the consent of the Borrower (such
consent not to be unreasonably withheld or delayed; provided, that the parties
hereto acknowledge and agree that the Borrower has a reasonable basis for
rejecting a proposed Lender that is a Public Lender as a result of the
potential difficulties that could arise in the connection with such Public
Lender’s participation in this Agreement, but that this provision shall not
prohibit the Borrower’s approval of such a Public Lender or the assignment of
rights and obligations hereunder to a Public Lender under circumstances where
the Borrower’s consent is not otherwise required) shall be required unless (1)
an Event of Default has occurred and is continuing at the time of such
assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or
an Approved Fund; and

(B)           the consent of the Administrative
Agent (such consent not to be unreasonably withheld or delayed) shall be
required if such assignment is to a Person that is not a Lender, an Affiliate
of such Lender or an Approved Fund with respect to such Lender.

(iv)          Assignment and Assumption.  The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together
with a processing and recordation fee in the amount of $3,500; provided,
however, that the Administrative Agent may, in its sole discretion,
elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

(v)           No Assignment to Borrower.  No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

(vi)          No Assignment to Natural Persons.  No such assignment shall be made to a natural
person.

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the assignee thereunder shall be a party to
this Agreement and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 2.11, 2.13, 2.14, 11.5 and
11.12 with respect to facts and circumstances occurring prior to the effective
date of such assignment.  Upon request,
the Borrower (at its expense) shall execute and deliver a Note (i) to the
assignee Lender and (ii) to the assignor Lender if such assignment is less than
such assignor Lender’s entire commitment. 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section.

(c)           Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, in the absence of manifest error, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower at any reasonable time and from time to time upon
reasonable prior notice.  In addition, at
any time that a request for a consent for a material or substantive change to
the Loan Documents is pending, any Lender wishing to consult with other Lenders
in connection therewith may request and receive from the Administrative Agent a
copy of the Register.

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(d)           Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower, the Administrative Agent or any other
party hereto, sell participations to any Person (other than a natural person or
the Borrower, any Subsidiary Guarantor or any of the Borrower’s or any
Subsidiary Guarantor’s Affiliates or Subsidiaries) (each, a “Participant”) in
all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing
to it); provided that (i) such Lender’s obligations under this Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent, the Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.

Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 11.1 that affects such
Participant.  Subject to subsection (e)
of this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 2.11, 2.13 and 2.14 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to subsection (b)
of this Section.  To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section
11.10 as though it were a Lender, provided such Participant agrees to be
subject to Sections 2.3(d) and (f) as though it were a Lender.

(e)           Limitations upon Participant
Rights.  A Participant shall not be
entitled to receive any greater payment under Section 2.11 or 2.13 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A Participant that would be a foreign
corporation (as referred to in Section 2.11(b)) if it were a Lender shall not
be entitled to the benefits of Section 2.11 unless the Borrower is notified of
the participation sold to such Participant and such Participant, for the
benefit of the Borrower, complies with Section 2.11(b) as though it were a
Lender.

(f)            Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note) to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided
that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

(g)           Electronic Execution of
Assignments.  The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be
deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records
Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

(h)           Resignation by Administrative
Agent.  In the event that any Lender
acting as Administrative Agent or any successor Lender acting as Administrative
Agent shall at any time hold a Commitment of less than $10,000,000.00, then
such Administrative Agent shall promptly provide written notice thereof to the
Lenders and the Required Lenders shall have the right, to be exercised within
fifteen (15) days of delivery of such notice by such Administrative Agent, to
elect to remove such Administrative Agent as Administrative Agent and replace
such Administrative Agent under the Loan Documents, subject to the terms of
Section 10.8 of this Agreement (including, without limitation, the consultation
with, and approval from, the Borrower, to the extent required under Section
10.8).

(i)            Resignation by other Agents.  In the event that a Lender that is also a
Joint Lead Arranger, Documentation Agent or Book Manager assigns all of its
Commitment, contemporaneously with the effectiveness of such assignment, such
Lender shall no longer serve in such capacity as Joint Lead Arranger,
Documentation Agent or Book Manager, as applicable.

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(j)            Special Purpose Funding Vehicles.  Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a special
purpose funding vehicle identified as such in writing from time to time by such
Granting Lender to the Administrative Agent and the Borrower (an “SPC”) the
option to provide all or any part of any Loan that such Granting Lender would
otherwise be obligated to make pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to fund any Loan,
and (ii) if an SPC elects not to exercise such option or otherwise fails to
make all or any part of such Loan, such Granting Lender shall be obligated to
make such Loan pursuant to the terms hereof or, if it fails to do so, to make
such payment to the Administrative Agent as is required pursuant to the terms
of this Agreement.  Each party hereto
hereby agrees that (i) neither the grant to any SPC nor the exercise by any SPC
of such option shall increase the costs or expenses or otherwise increase or
change the obligations of the Borrower under this Agreement (including its
obligations under Section 2.11 or 2.13), (ii) no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement for which a Lender
would be liable, and (iii) a Granting Lender shall for all purposes, including
the approval of any amendment, waiver or other modification of any provision of
any Loan Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the applicable Granting Lender to the same
extent, and as if, such Loan were made by such Granting Lender.  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior debt of any
SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or
liquidation proceeding under the laws of the United States or any State
thereof.  Notwithstanding anything to the
contrary contained herein, any SPC may (i) with notice to, but without prior
consent of, the Borrower and the Administrative Agent and with the payment of a
processing fee in the amount of $2,500, assign all or any portion of its right
to receive payment with respect to any Loan to the applicable Granting Lender
and (ii) disclose on a confidential basis any non-public information relating
to its funding of Loans to any rating agency, commercial paper dealer or
provider of any surety or Guarantee or credit or liquidity enhancement to such
SPC.

11.8         [Intentionally Omitted].

11.9         Counterparts; Integration;
Effectiveness. 
This Agreement may be executed in counterparts (and by different parties
hereto in different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.  Except as provided in Article V, this
Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto.  Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this
Agreement.  A telecopied counterpart of
any Loan Document or to any document evidencing, and of any an amendment,
modification, consent or waiver to or of any Loan Document shall be deemed to
be an originally executed counterpart.  A
set of the copies of the Loan Documents signed by all the parties thereto shall
be deposited with each of the Borrower and the Administrative Agent.  Any party to a Loan Document may rely upon
the signatures of any other party thereto which are transmitted by telecopier
or other electronic means to the same extent as if originally signed.

11.10       Adjustments; Set-off.

(a)           If any Lender (a “Benefited Lender”),
shall at any time receive any payment of all or any part of its Loans or
interest thereon, or receive any collateral in respect thereof (whether voluntarily
or involuntarily, by set-off, pursuant to events or proceedings of the
nature referred to in Section 9.1(h) or (i), or otherwise) in a greater
proportion than any such payment to and collateral received by any other Lender
in respect of such other Lender’s Loans or interest thereon, such Benefited
Lender shall purchase for cash from each of the other Lenders such portion of
each such other Lender’s Loans and shall provide each of such other Lenders
with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such Benefited Lender to share the excess payment or
benefits of such collateral or proceeds ratably with each of the Lenders,
provided, however, that if all or any portion of such excess payment or benefits
is thereafter recovered from such Benefited Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest.  The
Borrower agrees that each Lender so purchasing a portion of another Lender’s
Loans may exercise all rights of payment (including, without limitation, rights
of set-off, to the extent not prohibited by law) with respect to such
portion as fully as if such Lender were the direct holder of such portion.

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(b)           In addition to any rights and
remedies of the Lenders provided by law, upon the occurrence of an Event of
Default and the acceleration of the obligations owing in connection with the
Loan Documents, or at any time upon the occurrence and during the continuance
of an Event of Default under Section 9.1(a) or (b), each Lender shall have the
right, without prior notice to the Borrower, any such notice being expressly
waived by the Borrower to the extent not prohibited by applicable law, to set-off
and apply against any indebtedness, whether matured or unmatured, of the
Borrower to such Lender, any amount owing from such Lender to the Borrower, at,
or at any time after, the happening of any of the above-mentioned
events.  To the extent not prohibited by
applicable law, the aforesaid right of set-off may be exercised by such
Lender against the Borrower or against any trustee in bankruptcy, custodian,
debtor in possession, assignee for the benefit of creditors, receiver, or
execution, judgment or attachment creditor of the Borrower, or against anyone
else claiming through or against the Borrower or such trustee in bankruptcy,
custodian, debtor in possession, assignee for the benefit of creditors,
receivers, or execution, judgment or attachment creditor, notwithstanding the
fact that such right of set-off shall not have been exercised by such
Lender prior to the making, filing or issuance, or service upon such Lender of,
or of notice of, any such petition, assignment for the benefit of creditors,
appointment or application for the appointment of a receiver, or issuance of
execution, subpoena, order or warrant. 
Each Lender agrees promptly to notify the Borrower and the
Administrative Agent after any such set-off and application made by such
Lender, provided that the failure to give such notice shall not affect the
validity of such set-off and application.

11.11       Lenders’ Representations.  Each Lender represents to the Administrative
Agent that, in acquiring its Note, it is acquiring the same for its own account
for the purpose of investment and not with a view to selling the same in
connection with any distribution thereof, provided that the disposition of each
Lender’s own Property shall at all times be and remain within its control.

11.12       Indemnity.  The Borrower agrees to indemnify and hold
harmless each Credit Party and its affiliates, directors, officers, employees,
affiliates, agents, controlling persons and attorneys (each an “Indemnified
Person”) from and against any loss, reasonable cost, liability, damage or
reasonable expense (including the reasonable fees and disbursements of counsel
of such Indemnified Person, including all local counsel hired by any such
counsel) incurred by such Indemnified Person in investigating, preparing for,
defending against, or providing evidence, producing documents or taking any
other action in respect of, any commenced or threatened litigation,
administrative proceeding or investigation under any federal securities or tax
laws or any other statute of any jurisdiction, or any regulation, or at common
law or otherwise, which is alleged to arise out of or is based upon:  (a) any untrue statement of any material fact
by the Borrower in any document or schedule executed or filed with any
Governmental Authority by or on behalf of the Borrower; (b) any omission to
state any material fact required to be stated in such document or schedule, or
necessary to make the statements made therein, in light of the circumstances
under which made, not misleading; (c) any acts, practices or omissions of the
Borrower or its agents relating to the Collateral, the Subject Properties, the
use of the proceeds of any or all borrowings made by the Borrower which are
alleged to be in violation of Section 2.15, or in violation of any federal
securities or tax laws or of any other statute, rule, regulation, ordinance,
code, permit, license or other law of any jurisdiction applicable thereto,
whether or not such Indemnified Person is a party thereto; (d) any and all
claims for brokerage, leasing, finders or similar fees which may be made
relating to the Subject Properties or the Loans; or (e) any condition of the
Subject Properties.  The indemnity set
forth herein shall be in addition to any other obligations, liabilities or
other indemnifications of the Borrower to each Indemnified Person under the
Loan Documents or at common law or otherwise, and shall survive any termination
of the Loan Documents, the expiration of the Commitments and the payment of all
indebtedness of the Borrower under the Loan Documents, provided that the Borrower
shall have no obligation under this Section to an Indemnified Person with
respect to any of the foregoing to the extent found in a final judgment of a
court having jurisdiction to have resulted from the gross negligence or willful
misconduct of such Indemnified Person or arising solely from claims between one
such Indemnified Person and another such Indemnified Person.

11.13       Governing Law.  The Loan Documents and the rights and
obligations of the parties thereunder shall be governed by, and construed and interpreted
in accordance with, the internal laws of the State of New York, without regard
to principles of conflict of laws.

 75
 

 

11.14       Headings Descriptive.  Section headings have been inserted in the
Loan Documents for convenience only and shall not be construed to be a part
thereof.

11.15       Severability.  If any provision of this Agreement or the
other Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired
thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

11.16       Confidentiality.  The Administrative
Agent and each of the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and must agree (or, by acceptance of such materials,
be deemed to have agreed) to keep such Information confidential); (b) to the
extent requested by any regulatory authority; (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process; (d)
to any other party to this Agreement that is not a Public Lender; (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder;
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its right or obligations
under this Agreement or (ii) any direct or indirect contractual counterparty or
prospective contractual counterparty (or such contractual counterparty’s or
prospective contractual counterparty’s professional advisor) to any credit
derivative transaction relating to obligations of the Borrower or its
Subsidiaries; (g) with the consent of the Borrower; (h) to the extent such Information
(i) becomes publicly available other than as a result of a breach of this
Section (or an agreement executed pursuant to this Section) or (ii) becomes
available to the Administrative Agent or any of the Lenders on a
nonconfidential basis from a source other than the Borrower or its
Subsidiaries; or (i) to the National Association of Insurance Commissioners or
any other similar organization or any nationally recognized rating agency that
requires access to information about a Lender’s or its Affiliates’ investment
portfolio in connection with ratings issued with respect to such Lender or its
Affiliates.  In addition, the
Administrative Agent or any of the Lenders may disclose the existence of this
Agreement and information about this Agreement to market date collectors,
similar service providers to the lending industry, and service providers to the
Administrative Agent or any of the Lenders in connection with the
administration and management of this Agreement, the other Loan Documents and
the Commitments.  For purposes of this
Section, “Information” means all information received from the Borrower or any
Subsidiary relating to the Borrower or any Subsidiary or any of their
respective businesses, other than any such information that is available to the
Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower or any Subsidiary. 
Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

11.17       Consent to Jurisdiction.  The Borrower and each of the Credit Parties
hereby irrevocably submit to the jurisdiction of any New York State or Federal
court sitting in the City of New York over any suit, action or proceeding
arising out of or relating to the Loan Documents.  The Borrower and each of the Credit Parties
hereby irrevocably waive, to the fullest extent permitted or not prohibited by
law, any objection which any of them may now or hereafter have to the laying of
the venue of any such suit, action or proceeding brought in such a court and
any claim that any such suit, action or proceeding brought in such a court has
been brought in an inconvenient forum. 
The parties intend that Section 5-1402 of the New York General
Obligations Law shall apply to this Section 11.17.

11.18       Service of Process.  The Borrower hereby agrees that process may
be served against it in any suit, action or proceeding specified pursuant to
Section 11.17 by sending the same by first class mail, return receipt requested
or by overnight courier service, to the address of the Borrower set forth in
Section 11.2 or in the applicable Loan Document executed by the Borrower.  The Borrower hereby agrees that any such
service (a) shall be deemed in every respect effective service of process upon
it in any such suit, action, or proceeding, and (b) shall to the fullest extent
enforceable by law, be taken and held to be valid personal service upon and
personal delivery to it.

 76
 

 

11.19       No Limitation on Service or Suit.  Nothing in the Loan Documents or any
modification, waiver, consent or amendment thereto shall affect the right of
the Administrative Agent or any Lender to serve process in any manner permitted
by law or limit the right of the Administrative Agent or any Lender to bring
proceedings against the Borrower in the courts of any jurisdiction or
jurisdictions in which the Borrower may be served.

11.20       WAIVER OF TRIAL BY JURY.  THE ADMINISTRATIVE AGENT, THE LENDERS AND THE
BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT ANY OF
THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF,
UNDER OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
THEREIN.  FURTHER, THE BORROWER HEREBY
CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE ADMINISTRATIVE AGENT, THE
LENDERS, OR COUNSEL TO THE ADMINISTRATIVE AGENT OR THE LENDERS, HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE ADMINISTRATIVE AGENT OR THE
LENDERS WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE THIS WAIVER
OF RIGHT TO JURY TRIAL PROVISION.  THE
BORROWER ACKNOWLEDGES THAT THE ADMINISTRATIVE AGENT AND THE LENDERS HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, INTER ALIA, THE PROVISIONS OF THIS
SECTION.

11.21       Termination.  After the termination of this Agreement in
accordance with its terms, without any extension thereof, and the payment in
full of all obligations of the Borrower under the Loan Documents (including
without limitation, all principal, interest, Facility Fees and other amounts
payable hereunder and under the Notes), the obligations of the Borrower hereunder
(other than those which are stated herein to survive any termination of this
Agreement) shall terminate, except that the foregoing shall not apply with
respect to any claim, action or proceeding made or brought under any other
provision of the Loan Documents prior to such termination or payment.  At the request of the Borrower, each Lender
whose obligations under the Notes have been fully paid shall promptly return to
the Borrower its Note marked “paid” or shall deliver other evidence that such
Lender has received full payment of such obligations or, in the case of any
Lender that is not able to return such Note, such Lender shall deliver a lost
note affidavit and confirmation of payment with respect to such Note in form
and substance reasonably acceptable to the Borrower.

11.22       Replacement Notes.  Upon receipt of evidence reasonably
satisfactory to the Borrower of the loss, theft, destruction or mutilation of
any Note, and in the case of any such loss, theft or destruction, upon delivery
by the relevant Lender of an indemnity agreement reasonably satisfactory to the
Borrower or, in the case of any such mutilation, upon surrender and
cancellation of the applicable Note, the Borrower 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.

11.23       USA PATRIOT Act Notice:  Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)) the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Act.

11.24       Replacement of Lenders.  If any Lender requests compensation under
Section 2.13, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.11, or if any Lender is a Defaulting Lender or in the case of a
refusal by a Lender to consent to a proposed change, waiver, discharge or
termination with respect to this Agreement or any other Loan Document that has
been approved by the Required Lenders (as determined prior to any removal of
such Lender in connection with this Section 11.24), then the Borrower may, at
its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the requirements and restrictions contained in,
and consents required by, Section 11.7), all of its

 77
 

 

interests, rights
and obligations under this Agreement and the related Loan Documents to an
assignee that shall assume such obligations (which assignee may be, but is not
required to be, another Lender, if a Lender accepts such assignment), provided
that:

(a)           the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 11.7;

(b)           such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder
and under the other Loan Documents (including any amounts under Section 2.14)
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts);

(c)           in the case of any such assignment
resulting from a claim for compensation under Section 2.13 or payments required
to be made pursuant to Section 2.11, such assignment will result in a reduction
in such compensation or payments thereafter;

(d)           such
assignment does not conflict with applicable Laws; and

from and after the
effective date of such assignment the assigning Lender thereunder shall, be
released from its obligations under this Agreement and shall cease to be a
party hereto, but shall continue to be entitled to the benefits of Sections
2.11, 2.13, 2.14, 11.5 and 11.12 with respect to facts and circumstances
occurring prior to the effective date of such assignment.

A
Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.

11.25       No Advisory or Fiduciary
Relationships.  In connection with all
aspects of each transaction contemplated hereby, each of the Borrower and each
Subsidiary Guarantor acknowledges and agrees, and acknowledges its Affiliates’ understanding (to the extent of
Borrower’s or such Subsidiary Guarantor’s interest in such Affiliates),
that: (a) the credit facility provided
for hereunder and any related arranging or other services in connection
therewith (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document) are an arm’s-length
commercial transaction between the Borrower, each Subsidiary Guarantor and their respective Affiliates, on the one hand, and the
Administrative Agent, the Lenders and
BAS, on the other hand, and each of the Borrower and each Subsidiary Guarantor is capable of evaluating and
understanding and understands and accepts the terms, risks and conditions of
the transactions contemplated hereby and by the other Loan Documents (including
any amendment, waiver or other modification hereof or thereof); (b) in
connection with the process leading to such transaction, the Administrative
Agent, each Lender and BAS each
is and has been acting solely as a principal and is not the financial advisor,
agent or fiduciary, for the Borrower,
any Subsidiary Guarantor or any of their respective Affiliates, stockholders, creditors or employees
or any other Person; (c) neither the Administrative Agent nor any Lender nor BAS has assumed or will assume an
advisory, agency or fiduciary responsibility in favor of the Borrower or any Subsidiary Guarantor with
respect to any of the transactions contemplated hereby or the process leading
thereto, including with respect to any amendment, waiver or other modification
hereof or of any other Loan Document (irrespective of whether the
Administrative Agent, any Lender or BAS
has advised or is currently advising the Borrower, any Subsidiary Guarantor or any of their respective Affiliates on other matters) and neither the
Administrative Agent nor any Lender nor
BAS has any obligation to the Borrower, any Subsidiary Guarantor or any of their respective Affiliates with respect to the transactions
contemplated hereby except those obligations expressly set forth herein and in
the other Loan Documents; (d) the Administrative Agent, the Lenders and BAS and their respective
Affiliates may be engaged in a broad range of transactions that involve
interests that differ from those of the Borrower, the Subsidiary Guarantors and their respective Affiliates, and neither the Administrative Agent
nor any Lender nor BAS has any
obligation to disclose any of such interests by virtue of any advisory, agency
or fiduciary relationship; and (e) the Administrative Agent, the Lenders and BAS have not provided and will not
provide any legal, accounting, regulatory or tax advice with respect to any of
the transactions contemplated hereby (including any amendment, waiver or other
modification hereof or of any other Loan Document) and each of the Borrower and each of the Subsidiary Guarantors
has consulted its own legal, accounting, regulatory and tax advisors to the
extent it has deemed appropriate.  Each of the

 78
 

 

Borrower and each of the Subsidiary Guarantors
hereby waives and releases, to the fullest extent permitted by law, any claims
that it may have against the Administrative Agent, the Lenders and BAS with respect to any breach or
alleged breach of agency or fiduciary duty.

[SIGNATURES
COMMENCE ON FOLLOWING PAGE]

 

 79

 

 

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

	
  

  	
  NEW PLAN EXCEL REALTY TRUST, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John B. Roche

  
	
   

  	
   

  	
  John B. Roche,

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 80
 

 

 

	
  

  	
  BANK OF AMERICA, N.A., a national banking
  association, individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Mokelke

  
	
   

  	
  Name: 

  	
  Mark A. Mokelke

  
	
   

  	
  Title:

  	
  Vice President

  

 

Bank of America, N.A.

Agency Management

One Independence Center

101 N. Tryon Street

Charlotte, NC  28255-0001

Attention:  Anne-Brooke Lazorik

Telecopy:  (704) 409-0632

and

Bank of America, N.A.

231 South LaSalle Street, 10th Floor

Chicago, Illinois 60697

Attn:  Mark A. Mokelke

Telecopy:  (312) 974-4970

 81
 

 

 

	
  

  	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ David V. Fowler

  
	
   

  	
   

  	
  Name:

  	
   

  	
  David V. Fowler

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Director

  

 

 82
 

 

 

	
  

  	
   

  	
  SUNTRUST BANK, individually
  and as Documentation Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Nancy B. Richards

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Nancy B. Richards

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President

  

 

 83
 

 

 

	
  

  	
   

  	
  CITICORP NORTH AMERICA, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Malav Kakad

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Malav Kakad

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 84
 

 

 

	
  

  	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Cynthia A. Bean

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Cynthia A. Bean

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 85
 

 

 

	
  

  	
   

  	
  WELLS FARGO BANK NATIONAL
  ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ William Jordan

  
	
   

  	
   

  	
  Name:

  	
   

  	
  William Jordan

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 86
 

 

 

	
  

  	
   

  	
  CITIZENS BANK OF RHODE ISLAND

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Craig E. Schermerhorn

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Craig E. Schermerhorn

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 

 87
 

 

 

	
  

  	
   

  	
  THE GOVERNOR AND COMPANY OF THE
  BANK OF IRELAND

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Frank Schmitt

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Frank Schmitt

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Aoife M. Quinn

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Aoife M. Quinn

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Authorized Signatory

  

 

 

 88

 

	
  

  	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Richard L. Tavrow

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Richard L. Tavrow

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Irja R. Otsa

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Irja R. Otsa

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Associate Director

  

 

 89
 

 

 

	
  

  	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Brian P. Kelly

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Brian P. Kelly

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 

 90
 

 

 

	
  

  	
   

  	
  SUMITOMO MITSUI BANKING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Masakazu Hasegawa

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Masakazu Hasegawa

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Joint General Manager

  

 

 91
 

 

 

	
  

  	
   

  	
  CHANG HWA COMMERCIAL BANK, LTD., 

  
	
   

  	
   

  	
  NEW YORK BRANCH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Karl Yang

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Karl Yang

  
	
   

  	
   

  	
  Title:

  	
   

  	
  AVP & AGM

  

 

 92
 

 

 

	
  

  	
   

  	
  MIZUHO CORPORATE BANK (USA)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Makoto Murata

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Makoto Murata

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President

  

 

 

 93
 

 

 

	
  

  	
   

  	
  PEOPLE’S BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Anne Kuchinski

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Anne Kuchinski

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 94
 

 

 

	
  

  	
   

  	
  EMIGRANT BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Russell Wyman

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Russell Wyman

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 95
 

 

 

	
  

  	
   

  	
  FIRST COMMERCIAL BANK NEW YORK AGENCY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Bruce Ju

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Bruce Ju

  
	
   

  	
   

  	
  Title:

  	
   

  	
  VP & General Manager

  

 

 96
 

 

 

	
  

  	
   

  	
  FIRST HORIZON BANK, A DIVISION OF
  FIRST 

  
	
   

  	
   

  	
  TENNESSEE BANK, N.A.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Kenneth W. Rub

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Kenneth W. Rub

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 

 97

 

 

EXHIBIT C-1

Equity Interests Owners and
Equity Interests Properties

	
  Pledgor

  	
   

  	
  Equity
  Interests Owner

  	
   

  	
  Equity
  Interests Property

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. New Plan Excel Realty Trust, Inc.

  	
   

  	
  HK New Plan Marwood Sunshine Cheyenne, LLC

  	
   

  	
  Cheyenne Plaza 

  Sunshine Square

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HK New Plan STH Upper Tier I, LLC

  	
   

  	
  Arvada Plaza 

  Covered Bridge Shopping Center 

  Merchants Crossing 

  Sun Plaza 

  University IV Shopping Center

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. HK New Plan Mid Tier OH, L.P.

  	
   

  	
  HK New Plan Vineyards, L.P.

  	
   

  	
  The Vineyards

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HK New Plan Alexis Park, L.P.

  	
   

  	
  Alexis Park

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. HK New Plan STH Upper Tier II    Company

  	
   

  	
  HK New Plan STH Mid Tier II, LLC

  	
   

  	
  Festival Center 

  Lexington Town Square 

  Olympia Corners

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Excel Realty Partners, L.P.

  	
   

  	
  ERP Mingo Marketplace, LLC

  	
   

  	
  Mingo Marketplace

  

 

 

 98

 

 

EXHIBIT C-2

Distribution Interests Owners and
Distribution Interests Properties

	
  Pledgor

  	
   

  	
  Distribution
  Interests Owner

  	
   

  	
  Distribution
  Interests Property

  
	
  1. New Plan Excel Realty Trust, Inc.

  	
   

  	
  New Plan Hampton Village, LLC

  	
   

  	
  Hampton Village Center

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HK New Plan Skyway Plaza, LLC

  	
   

  	
  Skyway Plaza

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CA New Plan V

  	
   

  	
  Bay Forest-Cedar Lake 

  Braes Heights

  Braes Oaks 

  Brenham Four Corners 

  Broadway 

  Bryan Square 

  Carmel Village 

  Cedar Bellaire 

  Claremont Village (Highland Village)

  Clear Lake Camino South 

  El Camino I

  Five Points 

  Forest Hills 

  Highland Village Town Center 

  Huntington Village 

  Jeff Davis 

  Jefferson Park 

  Klein Square 

  Lazybrook 

  League City 

  Maplewood Mall

  North 45 Plaza (Moore Square)

  North Hills Village 

  Northgate 

  Northshore East 

  Northtown Plaza 

  Palm Plaza 

  Parktown 

  

 99
 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Parkview East

  Parkview West 

  Randall’s Center-Baytown 

  Silver Hills

  Socorro 

  Stevens Park Village 

  Tanglewilde 

  Texas City Bay 

  Tidwell Place

  Village Plaza 

  Washington Square 

  Webb Royal 

  Westheimer Commons 

  Wynnewood Village

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  New Plan Financing I, Inc.

  	
   

  	
  Greentree Shopping Center

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. New Plan of Michigan, Inc.

  	
   

  	
  New Plan of Silver Pointe, LLC

  	
   

  	
  Silver Pointe Shopping Center

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Excel Realty Partners, L.P.

  	
   

  	
  ERP Hillcrest, LLC

  	
   

  	
  Hillcrest Shopping Center

  

 

 100

 

 

EXHIBIT C-3

Additional Interests Owners and
Additional Interests Properties

	
  Additional
  Interests Owner

  	
   

  	
  Additional
  Interests Property

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  New Plan Excel Realty Trust, Inc.

  	
   

  	
  Crown Point Shopping Center 

  Northgate Shopping Center

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Excel Realty Trust-ST, Inc.

  	
   

  	
  Circle Center

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  New Plan Realty Trust

  	
   

  	
  Dickson City Crossings

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  New Plan Property Holding Company

  	
   

  	
  Highland Commons 

  Lexington Road Plaza 

  Florence Square

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Excel Realty Trust-NC

  	
   

  	
  Chapel Square SC

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  NP of Tennessee, L.P.

  	
   

  	
  Saddletree Village

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  ERP Financing, LLC

  	
   

  	
  Habersham Crossing

  
	
   

  	
   

  	
   

  	
   

  
	
  8. 

  	
  Excel Realty Partners, L.P.

  	
   

  	
  Riverview Plaza 

  Bakersfield Plaza 

  Bristol Plaza 

  Cudahy Plaza 

  Montebello Plaza

  
	
   

  	
   

  	
   

  	
   

  
	
  9. 

  	
  HK New Plan ERP Property Holdings, LLC

  	
   

  	
  Elkhart Market Centre

  
	
   

  	
   

  	
   

  	
   

  
	
  10. 

  	
  HK New Plan Hunt River Commons, LLC

  	
   

  	
  Hunt River Commons

  
	
   

  	
   

  	
   

  	
   

  
	
  11. 

  	
  HK New Plan Karl Plaza, L.P.

  	
   

  	
  Karl Plaza

  
	
   

  	
   

  	
   

  	
   

  
	
  12. 

  	
  ERP of Midway, LLC

  	
   

  	
  Midway Market Square

  

 101
 

 

 

	
   

  	
   

  	
   

  	
   

  
	
  13. 

  	
  New Plan of Elk Grove, LLC

  	
   

  	
  Elk Grove Town Center

  
	
   

  	
   

  	
   

  	
   

  
	
  14. 

  	
  New Plan of West Ridge, LLC

  	
   

  	
  West Ridge Shopping Center

  
	
   

  	
   

  	
   

  	
   

  
	
  15. 

  	
  New Plan of Hillside Village, LLC

  	
   

  	
  Village Center

  
	
   

  	
   

  	
   

  	
   

  
	
  16. 

  	
  New Plan of Arlington Heights, LLC

  	
   

  	
  Annex of Arlington

  

 

 

 102Exhibit
10.4

SECOND AMENDED AND RESTATED
GUARANTY

Re: Second Amended and Restated Secured Term Loan Agreement

 

SECOND AMENDED AND RESTATED GUARANTY (as the same may
be amended, supplemented or otherwise modified from time to time, this “Guaranty”), dated as of August 25,
2006, by and among each of the Subsidiaries listed on Schedule I hereto
(collectively, the “Subsidiary Guarantors”) and
BANK OF AMERICA, N.A., as administrative agent 
(in such capacity, the “Administrative Agent”)
on behalf of the Lenders under and as defined in the Loan Agreement
(hereinafter defined).

RECITALS

(A)          Reference
is made to that certain First Amended and Restated Secured Term Loan Agreement,
dated as of June 29, 2004 by and among New Plan Excel Realty Trust, Inc., a
Maryland corporation (the “Borrower”),
the Lenders party thereto, and the Administrative Agent (as the same may have
been previously amended, supplemented or otherwise modified from time to time,
the “Replaced Loan Agreement”).

(B)           Borrower,
the Lenders and the Administrative Agent have entered into that certain Second
Amended and Restated Secured Term Loan Agreement, dated as of August 25, 2006,
(as the same may be amended, supplemented or otherwise modified from time to
time, the “Loan Agreement”).

(C)           In
connection with the execution and delivery of the Loan Agreement, the
Subsidiary Guarantors and the Administrative Agent desire to amend and restate
in its entirety that certain First Amended and Restated Guaranty dated as of
June 29, 2004 by certain of the Subsidiary Guarantors in favor of the
Administrative Agent for the benefit of the Lenders under the Replaced Loan
Agreement and each other Guaranty executed by any Subsidiary Guarantor since
June 29, 2004 pursuant to Section 7.11 of the Replaced Loan Agreement, in each
case to the extent the applicable Subsidiary Guarantor(s) have not been
released prior to the date hereof pursuant to the terms and conditions of the
Replaced Loan Agreement (collectively, the “Replaced
Guaranties”).

(D)          The
Administrative Agent and Lenders have made it a condition precedent to the
effectiveness of the Loan Agreement that each Subsidiary Guarantor execute and
deliver this Guaranty.

(E)           Each
Subsidiary Guarantor expects to continue to derive substantial benefit from the
Loan Agreement and the transactions contemplated thereby and, in furtherance
thereof, has agreed to execute and deliver this Guaranty.

Therefore, in consideration of the Recitals, the terms
and conditions herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each of the
Subsidiary Guarantors and the Administrative Agent hereby covenant and agree as
follows:

1.             Defined Terms

(a)           Capitalized terms used herein which
are not otherwise defined herein shall have the respective meanings ascribed
thereto in the Loan Agreement.

(b)           When used in this Guaranty, the
following capitalized terms shall have the respective meanings ascribed thereto
as follows:

“Borrower
Obligations” means all present and future obligations and
liabilities, whether deemed principal, interest, additional interest, fees,
expenses or otherwise of the Borrower to the Administrative Agent and the
Lenders, including, without limitation, all obligations under (i) the Loan
Agreement, (ii) the Notes, and (iii) all other Loan Documents.

“Guarantor
Obligations” means, with respect to each Subsidiary
Guarantor, all of the obligations and liabilities of such Subsidiary Guarantor
hereunder, whether fixed, contingent, now existing or hereafter arising, created,
assumed, incurred or acquired.

 1
 

 

2.             Guarantee

(a)           Subject to Section 2(b), each
Subsidiary Guarantor hereby absolutely, irrevocably and unconditionally
guarantees the full and prompt payment when due (whether at stated maturity, by
acceleration or otherwise) of the Borrower Obligations.  The agreements of each Subsidiary Guarantor
in this Guaranty constitute a guarantee of payment, and no Credit Party shall
have any obligation to enforce any Loan Document or exercise any right or
remedy with respect to any collateral security thereunder by any action,
including making or perfecting any claim against any Person or any collateral
security for any of the Borrower Obligations prior to being entitled to the
benefits of this Guaranty.  The
Administrative Agent may, at its option, proceed against the Subsidiary
Guarantors, or any one or more of them, in the first instance, to enforce the
Guarantor Obligations without first proceeding against the Borrower or any
other Person, and without first resorting to any other rights or remedies, as
the Administrative Agent may deem advisable. 
In furtherance hereof, if any Credit Party is prevented by law from
collecting or otherwise hindered from collecting or otherwise enforcing any
Borrower Obligation in accordance with its terms, such Credit Party shall be
entitled to receive hereunder from the Subsidiary Guarantors after demand
therefor, the sums which would have been otherwise due had such collection or
enforcement not been prevented or hindered.

(b)           Notwithstanding anything to the
contrary contained herein, the maximum aggregate amount of the obligations of
each Subsidiary Guarantor hereunder shall not, as of any date of determination,
exceed the lesser of  the greatest amount
that is valid and enforceable against such Subsidiary Guarantor under
principles of New York State contract law and 
the greatest amount that would not render such Subsidiary Guarantor’s
liability hereunder subject to avoidance as a fraudulent transfer or conveyance
under Section 548 of Title 11 of the United States Code or any provisions of
applicable state law (collectively, the “Fraudulent Transfer Laws”), in each
case after giving effect to all other liabilities of such Subsidiary Guarantor,
contingent or otherwise, that are relevant under the Fraudulent Transfer Laws
(specifically excluding, however, any liability (A) in respect of intercompany
indebtedness to the Borrower or any Affiliate or Subsidiary of the Borrower, to
the extent that such intercompany indebtedness would be discharged to the
extent payment is made by such Subsidiary Guarantor hereunder, and (B) under
any guarantee of (1) senior unsecured indebtedness or (2) indebtedness
subordinated in right of payment to any Borrower Obligation, in either case
which contains a limitation as to maximum liability similar to that set forth
in this Section 2(b) and pursuant to which the liability of such Subsidiary
Guarantor hereunder is included in the liabilities taken into account in
determining such maximum liability) and after giving effect as assets to the
value (as determined under the applicable provisions of the Fraudulent Transfer
Laws) of any rights to subrogation, contribution, reimbursement, indemnity or
similar rights of such Subsidiary Guarantor pursuant to applicable law or any agreement
providing for an equitable allocation among such Subsidiary Guarantor and other
Affiliates or Subsidiaries of the Borrower of obligations arising under
guarantees by such parties.

(c)           Each Subsidiary Guarantor agrees that
the Guarantor Obligations may at any time and from time to time exceed the
maximum aggregate amount of the obligations of such Subsidiary Guarantor
hereunder without impairing this Guaranty or affecting the rights and remedies
of any Credit Party hereunder.

3.             Absolute Obligation

Except
as provided by Section 8.2 and/or 10.12 of the Loan Agreement, no Subsidiary
Guarantor shall be released from liability hereunder unless and until the
Commitments of the Lenders have terminated and either (i) the Borrower shall
have paid in full the outstanding principal balance of the Loans, together with
all accrued and unpaid interest thereon, and all other amounts then due and
owing under the Loan Documents, or (ii) the Guarantor Obligations of such
Subsidiary Guarantor shall have been paid in full in cash.  Each Subsidiary Guarantor acknowledges and
agrees that (a) no Credit Party has made any representation or warranty to such
Subsidiary Guarantor with respect to the Borrower, any of its Subsidiaries, any
Loan Document, or any agreement, instrument or document executed or delivered
in connection therewith, or any other matter whatsoever, and (b) such
Subsidiary Guarantor shall be liable hereunder, and such liability shall not be
affected or impaired, irrespective of (A) the validity or enforceability of any
Loan Document, or any agreement, instrument or document executed or delivered
in connection therewith, or the collectability of any of the Borrower
Obligations, (B) the preference or priority ranking with respect to any of the
Borrower Obligations, (C) the existence, validity, enforceability or perfection
of any security interest or collateral security under any Loan Document, or the
release, exchange, substitution or loss or impairment of any such security
interest or collateral security, (D) any failure, delay, neglect or omission by
any Credit Party to realize upon or protect any direct or indirect collateral
security, indebtedness, liability or obligation, 

 2
 

 

any Loan Document,
or any agreement, instrument or document executed or delivered in connection
therewith, or any of the Borrower Obligations, (E) the existence or exercise of
any right of set-off by any Credit Party, (F) the existence, validity or
enforceability of any other guarantee with respect to any of the Borrower
Obligations, the liability of any other Person in respect of any of the
Borrower Obligations, or the release of any such Person or any other guarantor
of any of the Borrower Obligations, (G) any act or omission of any Credit Party
in connection with the administration of any Loan Document or any of the
Borrower Obligations, (H) the bankruptcy, insolvency, reorganization or
receivership of, or any other proceeding for the relief of debtors commenced by
or against, any Person, (I) the disaffirmance or rejection, or the purported
disaffirmance or purported rejection, of any of the Borrower Obligations, any
Loan Document, or any agreement, instrument or document executed or delivered
in connection therewith, in any bankruptcy, insolvency, reorganization or
receivership, or any other proceeding for the relief of debtor, relating to any
Person, (J) any law, regulation or decree now or hereafter in effect which
might in any manner affect any of the terms or provisions of any Loan Document,
or any agreement, instrument or document executed or delivered in connection
therewith or any of the Borrower Obligations, or which might cause or permit to
be invoked any alteration in the time, amount, manner or payment or performance
of any of the Borrower’s obligations and liabilities (including the Borrower
Obligations), (K) the merger or consolidation of the Borrower into or with any
Person, (L) the sale by the Borrower of all or any part of its assets, (M) the
fact that at any time and from time to time none of the Borrower Obligations
may be outstanding or owing to any Credit Party, (N) any amendment or
modification of, or supplement to, any Loan Document, or (O) any other reason
or circumstance which might otherwise constitute a defense available to or a
discharge of the Borrower in respect of its obligations or liabilities
(including the Borrower Obligations) or of such Subsidiary Guarantor in respect
of any of the Guarantor Obligations (other than by the performance in full
thereof).

4.             Representations and Warranties

(a)           Each of the Subsidiary Guarantors
represents and warrants as to itself that all representations and warranties
relating to it contained in the Loan Agreement are true and correct.

(b)           Each of the Subsidiary Guarantors
represents and warrants as to itself that it has full legal power and authority
to enter into, execute, deliver and perform the terms of this Guaranty, all of
which have been duly authorized by all proper and necessary corporate or trust
action.

(c)           Each of the Subsidiary Guarantors
represents and warrants as to itself that this Guaranty constitutes the valid
and legally binding obligations of such Subsidiary Guarantor, and is
enforceable in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, or other similar
laws affecting the enforcement of creditors’ rights generally; and that the
execution, delivery and performance by such Subsidiary Guarantor of this
Guaranty does not violate the provisions of any applicable statute, law, rule
or regulation of any Governmental Authority.

(d)           Each of the Subsidiary Guarantors
represents and warrants as to itself that no consent, authorization or approval
of, filing with, notice to, or exemption by, stockholders, any Governmental
Authority or any other Person not obtained is required to be obtained by such
Subsidiary Guarantor to authorize, or is required in connection with, the
execution, delivery and performance of this Guaranty or is required to be
obtained by such Subsidiary Guarantor as a condition to the validity or
enforceability of this Guaranty.

5.             Notices

Except as
otherwise specifically provided herein, all notices, requests, consents,
demands, waivers and other communications hereunder shall be in writing
(including facsimile) and shall be given in the manner set forth in Section
11.2 of the Loan Agreement (i) in the case of the Administrative Agent, to the
address set forth in Section 11.2 of the Loan Agreement, (ii) in the case of a
Subsidiary Guarantor, to the address set forth in Schedule I hereto, or (iii)
in the case of each party hereto, to such other addresses as to which the
Administrative Agent may be hereafter notified by the respective parties
hereto.

6.             Expenses

Each Subsidiary
Guarantor agrees that it shall, promptly after demand, pay to the
Administrative Agent any and all reasonable out-of-pocket sums,
costs and expenses, which any Credit Party may pay or incur defending,
protecting 

 3
 

 

or enforcing this
Guaranty (whether suit is instituted or not), reasonable attorneys’ fees and
disbursements.  All sums, costs and
expenses which are due and payable pursuant to this Section shall bear
interest, payable on demand, at the highest rate then payable on the Borrower
Obligations.

7.             Repayment in Bankruptcy, etc.

If, at any time or
times subsequent to the payment of all or any part of the Borrower Obligations
or the Guarantor Obligations, any Credit Party shall be required to repay any
amounts previously paid by or on behalf of the Borrower or any Subsidiary
Guarantor in reduction thereof by virtue of an order of any court having
jurisdiction in the premises, including as a result of an adjudication that
such amounts constituted preferential payments or fraudulent conveyances, the
Subsidiary Guarantors unconditionally agree to pay to the Administrative Agent,
within 10 days after demand, a sum in cash equal to the amount of such
repayment, together with interest on such amount from the date of such
repayment by such Credit Party to the date of payment to the Administrative
Agent at the applicable after-maturity rate set forth in the Loan
Agreement.

8.             Miscellaneous

(a)           Except as otherwise expressly
provided in this Guaranty, each Subsidiary Guarantor hereby waives presentment,
demand for payment, notice of default, nonperformance and dishonor, protest and
notice of protest of or in respect of this Guaranty, the other Loan Documents
and the Borrower Obligations, notice of acceptance of this Guaranty and
reliance hereupon by any Credit Party, and the incurrence of any of the
Borrower Obligations, notice of any sale of collateral security or any default
of any sort.

(b)           No Subsidiary Guarantor is relying
upon any Credit Party to provide to such Subsidiary Guarantor any information
concerning the Borrower or any of its Subsidiaries, and each Subsidiary Guarantor
has made arrangements satisfactory to such Subsidiary Guarantor to obtain from
the Borrower on a continuing basis such information concerning the Borrower and
its Subsidiaries as such Subsidiary Guarantor may desire.

(c)           Each Subsidiary Guarantor agrees that
any statement of account with respect to the Borrower Obligations from any
Credit Party to the Borrower which binds the Borrower shall also be binding
upon such Subsidiary Guarantor, and that copies of said statements of account
maintained in the regular course of or such Credit Party’s business may be used
in evidence against such Subsidiary Guarantor in order to establish its
Guarantor Obligations.

(d)           Each Subsidiary Guarantor
acknowledges that it has received a copy of the Loan Documents and has approved
of the same.  In addition, each
Subsidiary Guarantor acknowledges having read each Loan Document and having had
the advice of counsel in connection with all matters concerning its execution
and delivery of this Guaranty.

(e)           This Guaranty shall be binding upon
each Subsidiary Guarantor and its successors and inure to the benefit of, and
be enforceable by the Administrative Agent, Lenders and their respective
successors, transferees and assigns.  No
Subsidiary Guarantor may assign any right, or delegate any duty, it may have
under this Guaranty.

(f)            Subject to the limitations set forth
in Section 2(b), the Guarantor Obligations shall be joint and several.

(g)           This Guaranty is the “Guaranty”
referred to in the Loan Agreement, and is subject to, and should be construed
in accordance with, the provisions thereof. 
Each of the parties hereto acknowledges and agrees that the following
provisions of the Loan Agreement are made applicable to this Guaranty and all
such provisions are incorporated by reference herein as if fully set forth
herein, including Sections 1 (Definitions),
2.11 (Taxes; Net Payments), 9.1 (Events of Default), 11.1 (Amendments
and Waivers), 11.3 (No Waiver; Cumulative
Remedies), 11.5 (Payment of Expenses and
Taxes), 11.7 (Successors and Assigns),
11.9 (Counterparts), 11.12 (Indemnity), 11.13 (Governing Law),
11.14, (Headings Descriptive), 11.15 (Severability), 11.16 (Integration),
11.17 (Consent to Jurisdiction), 11.18 (Service of Process), 11.19 (No
Limitation on Service or Suit), 11.20 (WAIVER OF
TRIAL BY JURY) and 11.25 (No Advisory or Fiduciary
Relationship) thereof.

 4
 

 

(h)           Each Subsidiary Guarantor agrees that
(i) the execution and delivery of a Guaranty by any additional Required
Additional Guarantor after the date hereof shall not affect the obligations of
the Subsidiary Guarantors hereunder, and (ii) the Subsidiary Guarantors and
each such additional Required Additional Guarantor shall, subject to Section
2(b), be jointly and severally liable for all of the Borrower Obligations.

(i)            If, notwithstanding the provisions
of Section 8(g) above, this Guaranty is deemed to be governed by California
law, then the following shall apply but shall not in any way limit the
generality of any other provisions contained in this Guaranty.

The Subsidiary
Guarantors hereby waive (a) any defense of the Subsidiary Guarantors based upon
a Credit Party’s election of any remedy against the Subsidiary Guarantors or
Borrower or both; (b) any defense based upon a Credit Party’s failure to
disclose to the Subsidiary Guarantors any information concerning Borrower’s
financial condition or any other circumstances bearing on Borrower’s ability to
pay all sums payable under the Loan Documents; (c) any defense based upon
any statute or rule of law which provides that the obligation of a surety must
be neither larger in amount nor in any other respects more burdensome than that
of a principal; (d) any defense based upon a Credit Party’s election, in
any proceeding instituted under Title 11, U.S.C.A., as amended from time to
time or any successor thereto (the “Bankruptcy Code”), of the application of
Section 1111(b)(2) of the Bankruptcy Code or any successor statute;
(e) any right of subrogation, any right to enforce any remedy which a
Credit Party may have against Borrower and any right to participate in, or
benefit from, any security for any of the Loan Documents now or hereafter held
by the Credit Parties; and (f) benefit of any statute of limitations
affecting the liability of the Subsidiary Guarantors hereunder or the
enforcement hereof.  Without limiting the
generality of the foregoing or any other provision hereof, the Subsidiary
Guarantors expressly waive any and all benefits which might otherwise be
available to the Subsidiary Guarantors under Sections 2787 to 2855, inclusive,
of the California Civil Code, including without limitation, Sections 2809,
2810, 2819, 2839, 2845, 2849 and 2850, and all benefits which might otherwise
be available to the Subsidiary Guarantors under Sections 2899 and 3433 of the
California Civil Code and the California Code of Civil Procedure Sections 580a,
580b, 580d and 726, or any of such sections. 
Furthermore, without limitation of any waiver otherwise set forth
herein, the Subsidiary Guarantors waive all rights and defenses arising out of
an election of remedies by the Credit Parties even though that election of
remedies, such as a nonjudicial foreclosure with respect to the security for a
guaranteed obligation, has destroyed the Subsidiary Guarantors’ rights of
subrogation and reimbursement against the principal by operation of Section
580d of the California Code of Civil Procedure or otherwise.

[SIGNATURES
COMMENCE ON FOLLOWING PAGE]

 .

 

 5

 

 

IN EVIDENCE of the
agreement by the parties hereto to the terms and conditions herein contained,
each such party has caused this Guaranty to be duly executed on its behalf.

	
  

  	
   

  	
  NEW PLAN REALTY TRUST,
  a Massachusetts 

  
	
   

  	
   

  	
  business trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
  Name: 

  	
  John Roche

  
	
   

  	
   

  	
  Title: 

  	
  EVP

  
					

 

 

	
  

  	
   

  	
  EXCEL REALTY TRUST -
  ST, INC., a Delaware 

  
	
   

  	
   

  	
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
  Name: 

  	
  John Roche

  
	
   

  	
   

  	
  Title: 

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
					

 

 

	
  

  	
  CA NEW PLAN ASSET PARTNERSHIP IV, L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  CA New Plan Asset, Inc., a Delaware

  
	
   

  	
   

  	
   

  	
  corporation, its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
						

 

	
  

  	
  EXCEL REALTY TRUST-NC, a North Carolina general 

  
	
   

  	
  partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  NC Properties #1 Inc., a Delaware corporation,

  
	
   

  	
   

  	
   

  	
  its managing partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
						

 

 

	
  

  	
  NP OF TENNESSEE, L.P., a Delaware limited
  partnership

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  New Plan of Tennessee, Inc., a Delaware corporation,
  

  
	
   

  	
   

  	
   

  	
  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
						

 

 

 6
 

 

 

	
  

  	
  POINTE ORLANDO DEVELOPMENT COMPANY, a 

  
	
   

  	
  California general partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  ERT Development Corporation, a Delaware corporation,
  

  
	
   

  	
   

  	
   

  	
  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
						

 

 

	
  

  	
  By:

  	
   

  	
  ERT Pointe Orlando, Inc., a New York Corporation, a 

  
	
   

  	
   

  	
   

  	
  New York corporation, general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
						

 

 

	
  

  	
  CA NEW PLAN TEXAS ASSETS, L.P., a Delaware 

  
	
   

  	
  limited partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  CA New Plan Floating Rate SPE, Inc., a Delaware 

  
	
   

  	
   

  	
   

  	
  corporation, its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [CORPORATE SEAL]

  
						

 

 

	
  

  	
   

  	
  HK NEW PLAN EXCHANGE
  PROPERTY OWNER I, 

  
	
   

  	
   

  	
  LLC, a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
  Name: 

  	
  John Roche

  
	
   

  	
   

  	
  Title: 

  	
  EVP

  
					

 

	
  

  	
   

  	
  NEW PLAN OF ILLINOIS,
  LLC, a Delaware limited 

  
	
   

  	
   

  	
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
  Name: 

  	
  John Roche

  
	
   

  	
   

  	
  Title: 

  	
  EVP

  
					

 

 7
 

 

 

	
  

  	
   

  	
  NEW PLAN PROPERTY
  HOLDING COMPANY, a 

  
	
   

  	
   

  	
  Maryland real estate
  investment trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
  Name: 

  	
  John Roche

  
	
   

  	
   

  	
  Title: 

  	
  EVP

  
					

 

	
  

  	
   

  	
  NEW PLAN OF MICHIGAN,
  LLC, a Delaware limited 

  
	
   

  	
   

  	
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
  Name: 

  	
  John Roche

  
	
   

  	
   

  	
  Title: 

  	
  EVP

  
					

 

	
  

  	
  HK NEW PLAN EXCHANGE PROPERTY OWNER II, L.P., 

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  HK New Plan Lower Tier OH, LLC, a Delaware limited 

  
	
   

  	
   

  	
   

  	
  liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP

  
						

 

 

 8
 

 

 

	
  

  	
   

  	
  BANK OF AMERICA, N.A.,
  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark A. Mokelke

  
	
   

  	
   

  	
  Name: 

  	
  Mark A. Mokelke

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
					

 

 9

 

 

SCHEDULE
I

TO SUBSIDIARY GUARANTY

SUBSIDIARY GUARANTORS

UNDER SECOND AMENDED AND
RESTATED GUARANTY

DATED AS OF AUGUST 25, 2006

	
  Name

  	
   

  	
  Jurisdiction of 

  Incorporation or Formation

  	
   

  	
  

  Address for Notices

  
	
  New Plan Realty Trust

  	
   

  	
  Massachusetts

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excel Realty Trust — ST, Inc.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CA New Plan Asset Partnership IV, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excel Realty Trust-NC

  	
   

  	
  North Carolina

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NP of Tennessee, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pointe Orlando Development Company

  	
   

  	
  California

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CA New Plan Texas Assets, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HK New Plan Exchange Property Owner I, LLC

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan of Illinois, LLC

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  

 

 

 

	
  Name

  	
   

  	
  Jurisdiction of 

  Incorporation or Formation

  	
   

  	
  

  Address for Notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan Property Holding Company

  	
   

  	
  Maryland

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan of Michigan, LLC

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HK New Plan Exchange Property Owner II, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel Realty Trust, Inc.

  420 Lexington Avenue

  New York, New York 10170

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]