Document:

Exhibit 10.1

 

Aircraft Lease Agreement

 

This Aircraft Lease
Agreement (the “Lease”), dated as of August 11, 2005, by and among
Corporate Flight Services, LLC, a Delaware limited liability company (“CFS”)
and College Park Management, LLC, a Delaware limited liability company, GMH
Military Housing Management LLC, a Delaware limited liability company, and GMH
Communities, LP, a Delaware limited partnership (collectively, the “Lessees,”
and individually, each a “Lessee”), each of which, intending to be legally bound
hereby and to bind each of their successors and assigns, agree as follows.

 

1.                                       Lease.  CFS hereby leases to the
Lessees that certain Dassault-Breguet Mystere Falcon 200 aircraft, Manufacturer’s
Serial No. 513, registration no. N618GH (the “Aircraft”).

 

2.                                       Term.  (a) Except as otherwise
provided herein, this Lease shall have an initial term of twelve months (the “Initial
Term”), and shall automatically renew for successive one-year terms (each,
a “Renewal Term”) unless either CFS or the Lessees provide notice of
termination to the other at least sixty (60) days prior to the end of the
Initial Term or a Renewal Term.  The
Initial Term and any Renewal Term hereunder being hereinafter referred to as
the “Term”). This Lease shall automatically terminate on the date that
CFS transfers title to the Aircraft to an unaffiliated third party.

 

(b) “Flight Period”
means each hour and fraction thereof that the Aircraft is made available for a
Lessee’s use following such Lessee’s request to CFS.  Nothing herein shall require that a Lessee
request to use, or use, the Aircraft for any minimum period of time during the
term of this Lease.

 

3.                                       Rent and Related Flight Charges.   (a) Each
Lessee shall pay CFS rent for its use of the Aircraft (“Rent”) in an
amount equal to $2,850 (“Aircraft Hourly Fixed Rent Rate”) per hour and
fraction thereof occurring during each Flight Period, and other expenses
related to the operation of the Aircraft during its use by each Lessee.

 

(b) CFS may, from time
to time, propose to change the Aircraft Hourly Fixed Rent Rate by written
notice provided to the Lessees (the “Rent Change Notice”) at least thirty (30)
days prior to the proposed effective date of the Rent change. The Lessees shall
have the right to terminate this Lease by providing written notice to CFS no
later than fifteen (15) days after receipt of the Rent Change Notice from CFS.

 

(c)  Rent for each
Flight Period shall be payable by a Lessee to CFS in cash on or before the 30th
business day following the Lessee’s receipt of CFS’ Rent statement for such
Flight Period.

 

4.                                       Aircraft Condition.  CFS
represents and warrants to the Lessees that, as of the date of this Lease: (a) the
Aircraft has been inspected and maintained in accordance with all pertinent
requirements of the Federal Aviation Regulations (“FAR”), (b) all
applicable

 

 

airworthiness directives and manufacturer’s service
bulletins have been complied with, and (c) the Aircraft is in airworthy
condition.

 

5.                                       Custody of Aircraft. 
During each Flight Period, subject to the terms and conditions hereof, a
Lessee shall have custody of the Aircraft and may determine the destinations of
the Aircraft and flight departure times.

 

6.                                       Control of Aircraft. 
During all Flight Periods, CFS shall have command and operational
control over the Aircraft, all flight crews, and all servicing and loading of
the Aircraft.  For the purpose of this
Lease, operational control includes, without limitation, exclusive control
over: (a) all flight crews; (b) determinations whether any particular
flight may be safely commenced or operated; (c) assignment of flight crew
to particular flights; (d) initiation and termination of all flights; (e) directions
to flight crews to conduct flights; and (f) dispatch or release of
flights.

 

7.                                       Flight Crew Qualifications.  CFS
shall use a fully-qualified flight crew, consisting of at least a pilot in
command and second in command, for all flights of the Aircraft during a Flight
Period.  Each such flight crew member
shall (a) be appropriately licensed and rated by the Federal Aviation
Administration (“FAA”) to operate the Aircraft, (b) be current and
qualified to operate an aircraft pursuant to requisite provisions of the FAR,
and (c) have at least the minimum qualifications and total pilot hours
required by the applicable insurance policies carried by CFS for the Aircraft.

 

8.                                       Use Consistent with Insurance.  Each
Lessee agrees to use the Aircraft only for flights that are consistent with the
applicable insurance coverage for the Aircraft.

 

9.                                       Passengers, Baggage and Cargo.  There
may be carried on the Aircraft on all flights, under this Lease, passengers,
baggage and cargo as a Lessee in its reasonable discretion shall determine;
provided, however, that the number of passengers shall in no event exceed the
number of seats legally available in the Aircraft and the total load, including
fuel and oil in such quantities as the pilot in command shall determine to be
required, shall not exceed the legally permissible maximum load for the
Aircraft.

 

10.                                 Maintenance.  CFS
shall provide proper maintenance of the Aircraft by performing, or causing to
be performed, all required inspections, repairs, modifications, maintenance,
preventive maintenance, fueling, internal cleaning, external cleaning,
hangaring and overhaul work completed as CFS deems necessary and as required by
the FAR, pertinent FAA directives or other guidance, and by the applicable
manufacturers’ maintenance and inspection program.  CFS shall maintain all logbooks and records
pertaining to the Aircraft during the term of the Lease in accordance with the
applicable FAR.  The parties agree that
no period of required maintenance, preventive maintenance, inspection or
overhaul shall be delayed or postponed because of a Lessee’s scheduling of the
Aircraft for Flight Periods.

 

11.                                 Fines, Penalties and Forfeitures.  Each
Lessee shall be solely responsible for any fines, penalties or forfeitures
(except for those fines, penalties or forfeitures levied directly against the
flight crew) relating to operation of the Aircraft under this Lease due to a
violation by

 

 

it, its employees, agents or contractors of any
federal, state, municipal, or other law or regulation relating to aircraft
safety or aircraft noise.

 

12.                                 Destruction of Aircraft.  In
the event that the Aircraft is destroyed, lost or damaged beyond repair,
whether due to casualty, mechanical failure, or otherwise, this Lease shall
automatically terminate as of the date of such destruction, loss or damage, and
neither party shall have any further obligations hereunder; provided, however,
that such termination shall in no way effect, impair or limit (a) any
liability or obligation of one party to the other which had occurred prior to
such destruction, loss or damage, or (b) any liability of the Lessees to
CFS and/or CFS to the Lessees as a result of negligence or willful misconduct
resulting in such destruction, loss or damage.

 

13.                                 Damage to Aircraft.  In
the event the Aircraft is partially destroyed or damaged, CFS shall have the
option, in its sole discretion, to either (a) repair the Aircraft in order
that it shall be placed in as least as good condition as it was prior to such
partial destruction or damage, or (b) terminate the Lease.  Within fifteen (15) days after the date of
such partial destruction or damage, CFS shall give written notice to the Lessees
specifying whether CFS has elected to fully repair the Aircraft or to terminate
this Lease, which termination shall be effective immediately upon such written
notice from CFS to the Lessees setting forth CFS’ election to so terminate this
Lease.

 

14.                                 Representations and Warranties.  CFS
and the Lessees represent and warrant to the other that: (a) each is duly
qualified and in good standing in its state of formation; (b) this Lease
is duly executed and is in conformance with its respective charter documents; (c) the
officer executing this Lease on its behalf has the requisite power and authority
to execute the same; (d) this Lease is duly authorized by all necessary
limited liability company, or such other requisite, action; (e) this Lease
is a valid and binding obligation and is enforceable against the party in
accordance with its terms; and (f) it is qualified to do business in each
jurisdiction in which such qualification is necessary.

 

15.                                 Claims Against the Aircraft.  Each
Lessee agrees that, throughout the Term , it shall not cause or permit, through
any of its own acts or failures to act, any liens, claims or encumbrances to
attach to the Aircraft.

 

16.                                 Carriage of Contraband.  Each
Lessee agrees that, throughout the Term, it shall not cause or permit the
carriage of contraband, prohibited hazardous material or illegal controlled
substances aboard the Aircraft during any Flight Period.

 

17.                                 Termination for Cause.  If
the Lessees shall fail to timely, fully and diligently comply with any term or
provision of this Lease, CFS shall have the right, at its option, to terminate
this Lease, which termination shall be effective immediately upon written
notice from CFS to the Lessees setting forth CFS’ election to so terminate this
Lease.

 

18.                                 Assignment.  This Lease is not and shall
not be assigned by either party without the prior written consent of the other
party.  This Lease shall inure to the
benefit of and be

 

 

binding upon the parties hereto and, subject to the
restriction contained in the preceding sentence, their respective successors,
assigns, heirs, distributees and executors.

 

19.                                 Further Assurances.  The
parties agree to and shall, from time to time, do and perform such other and
further acts, and execute and deliver any and all such other and further
instruments as may be required by law or reasonably requested by the other
party to establish, maintain and protect the respective rights and remedies of
the other as provided in the Lease and to carry out the intent and purpose of
this Lease.

 

20.                                 Governing Law.  This
Lease shall be interpreted in accordance with, and performance shall be
governed by, the internal laws of the State of Delaware, regardless of the
conflicts of laws principles thereof.

 

21.                                 Entire Lease.  This
Lease supersedes any and all other leases, whether oral or in writing expressed
or implied, between the parties hereto with respect to the Aircraft and contains
all of the covenants and leases between the parties with respect to the subject
matter hereof.  Each party to this Lease
acknowledges that no representation, inducement, promises or Leases of any
nature have been made by any party or any person acting on behalf of any party
which are not embodied herein and that no lease, statement or promise concerning
the subject matter of this Lease which is not contained in the lease shall be
valid or binding.

 

22.                                 Notices.  Any notices, requests, claims, demand and
other communications required or permitted to be given hereunder shall be given
in writing and shall be delivered (a) in person, (b) by certified
mail, postage prepaid, return receipt requested, (c) by a commercial
overnight courier that guarantees next day delivery and provides to the sender
a delivery receipt or (d) by legible facsimile (followed by hard copy
delivered in accordance with preceding subsections (a)-(c)). Any notice shall
be effective only upon receipt (or refusal by the intended recipient to accept
delivery). Such notices shall be addressed as follows: 

 

	
  CFS:

  	
   

  	
  Corporate Flight Services, LLC

  
	
   

  	
   

  	
  10 Campus Boulevard

  Newtown Square, PA 19073

  Attention: Gary M. Holloway, Sr.

  Fax: 610-355-8480

  
	
   

  	
   

  	
   

  
	
  GMH Military

  Housing

  Management

  LLC:

  	
   

  	
  GMH Military Housing, LLC

  10 Campus Boulevard

  Newtown Square, PA 19073

  Attention: Joseph M. Macchione

  Fax: 610-355-8480

  

 

 

	
  College Park

  Management,

  LLC:

  	
   

  	
  College Park Management, LLC

  10 Campus Boulevard

  Newtown Square, PA 19073

  Attention: Joseph M. Macchione

  Fax: 610-355-8480

  
	
   

  	
   

  	
   

  
	
  GMH

  Communities,

  LP:

  	
   

  	
  GMH Communities, LP

  10 Campus Boulevard

  Newtown Square, PA 19073

  Attention: Joseph M. Macchione

  Fax: 610-355-8480

  

 

or to such other address as either party may from
time to time specify in writing to the other party.

 

23.                                 Amendment of Lease.  This
Lease cannot be and shall not be modified, altered or amended expect as
specifically provided herein or by a written amendment to this Lease executed
by each of the parties hereto.

 

24.                                 Severability.  The
provisions of this Lease shall be deemed independent and severable and the
invalidity, partial invalidity or unenforceability of any one provision or
portion of this Lease shall not affect the validity or enforceability of any
other provision of this Lease.  Any
provision of this Lease which is prohibited or unenforceable in any
jurisdiction shall as to such jurisdiction be ineffective to the extent of such
prohibition or unenforceability, and any prohibition of unenforceability in any
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

 

25.                                 Headings.  The headings of the paragraph
contained in this Lease are inserted for convenience only and shall not
constitute a part of this Lease.

 

26.                                 Counterparts.  This
Lease may be executed in two or more counterparts, each of which shall be
binding as of the date first written above, and all of which shall constitute
one and the same instrument.  Each such copy shall be deemed an original,
and it shall not be necessary in making proof of this Lease to produce or
account for more than one such counterpart.

 

[Signatures appear on following page(s)]

 

 

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

 

 

	
   

  	
  CORPORATE FLIGHT SERVICES, LLC,
  by

  its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Gary M.
  Holloway, Sr.

  	
   

  
	
   

  	
  Gary M. Holloway, Sr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GMH MILITARY HOUSING MANAGEMENT

  LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
  Name: Joseph M. Macchione

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COLLEGE PARK MANAGEMENT, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
  Name: Joseph M. Macchione

  
	
   

  	
  Title: Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GMH COMMUNITIES, LP,

  
	
   

  	
  by its sole general partner

  
	
   

  	
   

  
	
   

  	
  GMH Communities GP Trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Gary M.
  Holloway, Sr.

  	
   

  
	
   

  	
  Name: Gary M. Holloway, Sr.

  
	
   

  	
  Title: Managing TrusteeExhibit 10.2

 

SECOND AMENDMENT AND WAIVER TO CREDIT AGREEMENT

 

THIS
SECOND AMENDMENT AND WAIVER TO CREDIT AGREEMENT (this “Agreement”) is
entered into to be effective as of August 9, 2005, by and among GMH COMMUNITIES, LP, a
Delaware limited partnership (“GMH Operating Partnership”), GMH COMMUNITIES TRUST, a Maryland real estate investment trust (the “Trust”), each
Subsidiary of the Trust that is a borrower pursuant to Section 2.16 of
the Credit Agreement defined below (individually, a “Subsidiary Borrower”
and collectively, “Subsidiary
Borrowers;” GMH Operating Partnership and Subsidiary Borrowers
are individually called a “Borrower”
and collectively called “Borrowers”),
each lender party to the Credit Agreement (collectively, the “Lenders” and
individually, a “Lender”),
and BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer.

 

R E  C  I  T  A  L
S

 

A.                                   Reference is hereby made to that certain
Credit Agreement dated as of November 8, 2004, executed by the Trust,
Borrowers, the Lenders, and Administrative Agent (as amended, the “Credit Agreement”).

 

B.                                     Capitalized terms used herein shall, unless
otherwise indicated, have the respective meanings set forth in the Credit
Agreement.

 

C.                                     The Trust, Borrowers, Administrative Agent,
and Lenders desire to waive and modify certain provisions contained in the
Credit Agreement, subject to the terms and conditions set forth herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Waiver. 
Trust and Borrowers failed to maintain a Leverage Ratio equal to or less
than sixty percent (60%) as of the fiscal quarter ending June 30, 2005
(the “Subject Period”)
as required by Section 7.10(e).
Subject to the terms and conditions set forth herein, Lenders waive compliance
with Section 7.10(e) of
the Credit Agreement solely for the Subject Period.  No waiver by Lenders under the Credit
Agreement or any other Loan Document is granted except as expressly set forth
above, and Lenders expressly reserve the right to require strict compliance
with the terms of the Credit Agreement and the other Loan Documents in all
other respects.

 

2.                                      Amendments to the Credit
Agreement.

 

(a)                                  Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Applicable Rate” in its entirety and replace
such definition with the following:

 

1

 

“Applicable Rate” means the following
percentages per annum, based upon the Leverage Ratio as set forth in the most
recent Compliance Certificate received by Administrative Agent pursuant to Section 6.02(b):

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Eurodollar

  Rate +

  	
   

  	
   

  	
   

  	
   

  
	
  Pricing

  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
   

  	
  Letters of

  Credit

  	
   

  	
   

  	
  Base Rate +

  	
   

  
	
  1

  	
   

  	
   

  	
  <0.45:1

  	
   

  	
  1.625

  	
  %

  	
  0.75

  	
  %

  
	
  2

  	
   

  	
   

  	
  >0.45:1 but <0.50:1

  	
   

  	
  1.750

  	
  %

  	
  1.00

  	
  %

  
	
  3

  	
   

  	
   

  	
  >0.50:1 but <0.55:1

  	
   

  	
  1.875

  	
  %

  	
  1.25

  	
  %

  
	
  4

  	
   

  	
   

  	
  >0.55:1 but <0.60:1

  	
   

  	
  2.125

  	
  %

  	
  1.50

  	
  %

  
	
  5

  	
   

  	
   

  	
  >0.60:1

  	
   

  	
  2.375

  	
  %

  	
  1.75

  	
  %

  

 

Any increase or decrease in the Applicable Rate resulting from a change
in the Leverage Ratio shall become effective as of the first (1st)
Business Day immediately following the date a Compliance Certificate is
delivered pursuant to Section 6.02(b); provided, however,
that if a Compliance Certificate is not delivered when due in accordance with
such Section, then Pricing Level 5 shall apply as of the first (1st)
Business Day after the date on which such Compliance Certificate was required
to have been delivered until and including the first (1st) Business
Day immediately following the date such Compliance Certificate is actually
delivered.  The Applicable Rate in effect
from the Second Amendment Effective Date through the date of delivery of the
next Compliance Certificate delivered pursuant to Section 6.02(b) shall
be determined based upon Pricing Level 4.

 

(b)                                  Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Borrowing Base Value” in its entirety and replace such definition
with the following:

 

“Borrowing Base Value” means the sum
of (a) the Unencumbered Asset Value times sixty percent (60%) plus
(b) Management Cash Flow Value times fifty percent (50%); provided
that (i) the amount of Management Cash Flow Value included in the
calculation of Borrowing Base Value shall not exceed fifty percent (50%) of
Borrowing Base Value, and (ii) the Unencumbered Asset Value attributable
to any single Unencumbered Property shall not exceed thirty percent (30%) of
Borrowing Base Value.

 

(c)                                  Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Leverage
Ratio” in its entirety and
replace such definition with the following:

 

“Leverage Ratio” means, as
of any date of determination, the ratio of (a) the Total Debt of
the Companies to (b) Total
Asset Value.

 

(d)                                  Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Liabilities” in its entirety.

 

(e)                                  Section 1.01 of the Credit Agreement is hereby amended to
add the following definition of “MAI Appraisal Value”
between the definitions of “Loan Parties” and “Management Cash
Flow Value” :

 

2

 

“MAI Appraisal Value” means, with
respect to any real property, the appraisal value of such property as
determined by written appraisal reports, in form and substance acceptable to
Administrative Agent, meeting the requirements of the Federal Institutions
Reform, Recovery and Enforcement Act of 1989, prepared by a professional
appraiser, who is a member of the Member Appraisal Institute.

 

(f)                                    Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Military
Housing EBITDA” in its
entirety and replace such definition with the following:

 

“Military Housing EBITDA”
means, for any Person for any period, total Consolidated EBITDA received from fees and returns in
respect of Equity Interests in respect of operating Military Housing Projects,
all as calculated in accordance with GAAP.

 

(g)                                 Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “NOI
Value” in its entirety.

 

(h)                                 Section 1.01 of the Credit Agreement is hereby amended to
add the following definition of “Second Amendment Effective Date” between the definitions of “SEC” and “Secured Debt” :

 

“Second Amendment Effective Date”
means August 9, 2005.

 

(i)                                    Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Total
Asset Value” in its entirety
and replace such definition with the following:

 

“Total Asset Value” means
the sum of (a) as of any date of determination, the
lesser of (i) the book value of the Student Housing Projects plus
accumulated depreciation on such Student Housing Projects, as determined on a consolidated basis in
accordance with GAAP, or (ii) the most recent MAI Appraisal Value
of the Student Housing Projects (solely to the extent available), plus (b) Management Cash Flow
Value, plus (c) the book value of other assets (excluding owned
real estate captured in clause (a) above) owned by the Companies,
as determined on a consolidated basis in accordance with GAAP; plus (d) GMH
Operating Partnership’s and each
Guarantor’s pro rata share of the book value of assets in joint ventures of
such Person that own student housing properties; provided  that,
current assets (as determined in accordance with GAAP) that are incurred in the
normal course of business shall be excluded from Total Asset Value; provided,
further  that, Management Cash Flow Value shall not exceed twenty
percent (20%) of Total Asset Value.

 

(j)                                    Section 1.01 of the Credit Agreement is hereby amended to
add the following definition of “Total Debt” between the definitions of “Total
Availability” and “Total
Outstandings”:

 

“Total Debt” means (without
duplication), for any Person as of any date, (a) all Indebtedness of such
Person, (b) all other indebtedness, liabilities, or obligations required
by GAAP to be classified upon such Person’s balance sheet as liabilities, and (c) such
Person’s pro rata share of all Indebtedness of joint ventures in which such
Person owns an Equity Interest that own student housing properties.
Notwithstanding the foregoing, the current liabilities (as determined in
accordance with GAAP) that are incurred in the normal course of business shall
be excluded from Total Debt.

 

3

 

(k)                                Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Unencumbered Asset Value” in its entirety and replace such definition
with the following:

 

“Unencumbered Asset Value” means an
amount equal to the lesser of (a) the sum of (i) the
aggregate book value of Unencumbered Properties plus (ii) accumulated
depreciation of such Unencumbered Properties, as determined on a consolidated basis in accordance with GAAP, or (b) the
most recent MAI Appraisal Value of the Unencumbered Properties (solely to the
extent available).

 

(l)                                    Section 1.01 of the Credit Agreement is hereby amended to
delete the definition of “Unencumbered Property Report” in its entirety and replace such definition
with the following:

 

“Unencumbered Property Report” means a
report in substantially the form of Exhibit I certified by a
Responsible Officer of GMH Operating Partnership, setting forth in reasonable
detail the Occupancy Rate, Approved Costs, Unencumbered Asset Value, Adjusted
Property NOI, NOI Value, the most recent MAI Appraisal Value of the
Unencumbered Properties, and Capital Expenditure Reserve for the Unencumbered
Properties (individually and in the aggregate).

 

(m)                              Article VI of
The Credit Agreement is hereby amended
by adding the following Section 6.14
thereto:

 

6.14                        Appraisal Rights.  To
the extent Administrative Agent reasonably determines that a new appraisal is
necessary for any Student Housing Project and provides notice of such
determination to Trust or any Borrower, obtain a new appraisal for such Student
Housing Project for purposes of calculating both the Unencumbered Asset
Value and Total Asset Value; provided
that so long as no Event of Default exists, Administrative Agent shall not
request more than one (1) new appraisal for any Student Housing Project
during any twelve (12) month period. 
Each appraiser shall be engaged by Administrative Agent (at Borrowers’
expense) and all appraisals shall be subject the review and approval of
Administrative Agent.

 

(n)                                 Section 7.01(j)
of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

 

(j)                                     Liens securing
Indebtedness permitted under Section 7.03(g); provided that (i) each
such transaction is secured by no more than five (5) assets of the debtor
under such transaction

 

(o)                                  Section 7.03(f) of
the Credit Agreement is hereby deleted in
its entirety and replaced with the following:

 

(f)                                    Recourse Debt
(other than the Obligations) of the Companies (i) to the extent such
Recourse Debt is secured, in an aggregate principal amount not to exceed at any
time outstanding $25,000,000; and (ii) to the extent such Recourse Debt is
unsecured, in an amount not to exceed $125,000,000, as long as any such
unsecured Recourse Debt: (A) is pari-passu with, or subordinate (on terms
reasonably acceptable to Administrative Agent) to, all other unsecured Recourse
Debt of the Companies, (B) has covenants no more restrictive than under
this Agreement, (C) has a maturity date that is at least one hundred and
eighty (180) days beyond the Maturity Date, (D) if such debt is suitable
for bank investors, each Lender has had the opportunity

 

4

 

to participate in such financing, and (E) shall otherwise be
approved by Administrative Agent (such approval not to be unreasonably
withheld).

 

(p)                                  Section 7.10(e) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

 

(e)                                  Leverage
Ratio.  Permit the Leverage Ratio as of the end of
any fiscal quarter of the Trust to be greater than (i) from the Second
Amendment Effective Date through December 31, 2005, 65%, and (ii) after
December 31, 2005, 60%.

 

(q)                                  Schedule 2
and the first Schedule 3 to Exhibit D of the
Credit Agreement are hereby amended and replaced with Schedules 1 and 2 attached hereto.

 

3.                                      Amendments to Credit
Agreement and Other Loan Documents.

 

(a)                                  All references in the Loan Documents to the
Credit Agreement shall henceforth include references to the Credit Agreement as
modified and amended by this Agreement, and as may, from time to time, be
further modified, amended, restated, extended, renewed, and/or increased.

 

(b)                                  Any and all of the terms and provisions of
the Loan Documents are hereby amended and modified wherever necessary, even
though not specifically addressed herein, so as to conform to the amendments
and modifications set forth herein.

 

4.                                      Ratifications.  Each
Loan Party that is a party hereto (a) ratifies and confirms all provisions
of the Loan Documents as amended by this Agreement, (b) ratifies and
confirms that all guaranties and assurances, granted, conveyed, or assigned to the
Administrative Agent and the Lenders under the Loan Documents are not released,
reduced, or otherwise adversely affected by this Agreement and continue to
guarantee and assure full payment and performance of the present and future
Obligations, and (c) agrees to perform such acts and duly authorize,
execute, acknowledge, deliver, file, and record such additional documents and
certificates as the Administrative Agent or the Lenders may reasonably request
in order to create, preserve and protect those guaranties and assurances.

 

5.                                      Representations.  Each
Loan Party that is a party hereto represents and warrants to Lenders that as of
the date of this Agreement: (a) this Agreement has been duly authorized,
executed, and delivered by each such Loan Party; (b) no action of, or
filing with, any Governmental Authority is required to authorize, or is
otherwise required in connection with, the execution, delivery, and performance
by each such Loan Party of this Agreement; (c) the Loan Documents, as
amended by this Agreement, are valid and binding upon each Loan Party that is a
party thereto and are enforceable against each Loan Party in accordance with
their respective terms, except as limited by Debtor Relief Laws and general
principles of equity; (d) the execution, delivery, and performance by each
Loan Party that is a party hereto of this Agreement do not require the consent
of any other Person and do not and will not constitute a violation of any Laws,
order of any Governmental Authority, or material agreements to which any such
Loan Party that is a party or by which any such Loan Party is bound; (e) all
representations and warranties in the Loan Documents are true and correct in
all material respects on and as of the date of this Agreement, except to the
extent that (i) any of them speak to a different specific date, or (ii) the
facts on which any of them were based have been changed by transactions
contemplated or permitted by the Credit Agreement; and (f) both before and
after giving effect to this Agreement, no Default or Event of Default exists.

 

5

 

6.                                      Conditions.  This
Agreement shall not be effective unless and until:

 

(a)                                  this Agreement is executed by each Borrower,
the Trust, each Guarantor, Administrative Agent, and the Required Lenders;

 

(b)                                  the representations and warranties in this
Agreement are true and correct in all material respects on and as of the date
of this Agreement, except to the extent that (i) any of them speak to a
different specific date, or (ii) the facts on which any of them were based
have been changed by transactions contemplated or permitted by the Credit
Agreement;

 

(c)                                  both before and after giving effect to this
Agreement, no Default or Event of Default exists; and

 

(d)                                  Administrative Agent shall have received, for
the benefit of the applicable Lenders, an amendment fee equal to 0.10% times
the Commitment of each Lender that executes this Agreement.

 

7.                                      Continued Effect. 
Except to the extent amended hereby or by any documents executed in
connection herewith, all terms, provisions, and conditions of the Credit
Agreement and the other Loan Documents, and all documents executed in
connection therewith, shall continue in full force and effect and shall remain
enforceable and binding in accordance with their respective terms.

 

8.                                      Miscellaneous. 
Unless stated otherwise (a) the singular number includes the plural
and vice versa and words of any
gender include each other gender, in each case, as appropriate, (b) headings
and captions may not be construed in interpreting provisions, (c) this
Agreement shall be construed — and its performance enforced — under New York
law, (d) if any part of this Agreement is for any reason found to be
unenforceable, all other portions of it nevertheless remain enforceable, and (e) this
Agreement may be executed in any number of counterparts with the same effect as
if all signatories had signed the same document, and all of those counterparts
must be construed together to constitute the same document.

 

9.                                      Parties.  This
Agreement binds and inures to each of the parties hereto and their respective
successors and permitted assigns.

 

10.                               ENTIRETIES.  THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS, AS AMENDED BY THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES ABOUT THE SUBJECT MATTER OF THE CREDIT AGREEMENT AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[Remainder of Page Intentionally Left Blank;
Signature Pages to Follow.]

 

6

 

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

 

	
   

  	
  BANK OF AMERICA, N.A., a national banking

  association, as Administrative Agent, L/C Issuer, Swing

  Line Lender, and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ron Odlozil

  	
   

  
	
   

  	
   

  	
  Ron
  Odlozil

  
	
   

  	
   

  	
  Senior
  Vice President

  

 

Signature Page to Second Amendment and Waiver
to Credit Agreement

 

 

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

 

	
   

  	
  EUROHYPO AG, NEW YORK BRANCH, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

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

 

 

	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Donald Shokrian

  	
   

  
	
   

  	
   

  	
  Name:
  Donald Shokrian

  
	
   

  	
   

  	
  Title:
  Managing Director

  

 

 

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

 

 

	
   

  	
  MERRILL LYNCH CAPITAL CORPORATION, as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael E. O’Brien

  	
   

  
	
   

  	
   

  	
  Name:
  Michael E. O’Brien

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

 

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

 

	
   

  	
  MORGAN STANLEY BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Daniel Twenge

  	
   

  
	
   

  	
   

  	
  Name:
  Daniel Twenge

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

 

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

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS, as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Brenda Casey

  	
   

  
	
   

  	
   

  	
  Name:
  Brenda Casey

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven P. Lapham

  	
   

  
	
   

  	
   

  	
  Name:
  Steven P. Lapham

  
	
   

  	
   

  	
  Title:
  Managing Director

  
					

 

 

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

 

	
   

  	
  BANK MIDWEST, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy B. Kenney

  	
   

  
	
   

  	
   

  	
  Name:
  Timothy B. Kenney

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  

 

 

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

 

 

	
   

  	
  GMH COMMUNITIES, LP,
  a Delaware limited partnership,

  as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GMH COMMUNITIES GP TRUST, a Delaware trust,

  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
   

  	
  Joseph
  M. Macchione

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

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

 

 

	
   

  	
  GMH COMMUNITIES TRUST, a Maryland real estate

  investment trust, as a
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Name:
  Joseph M. Macchione

  
	
   

  	
   

  	
  Title:
  Senior Vice President and General Counsel

  

 

 

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

 

 

	
   

  	
  COLLEGE PARK MANAGEMENT TRS, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Joseph M. Macchione

  
	
   

  	
   

  	
  Vice President and Secretary

  

 

 

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

 

 

	
   

  	
  GMH MILITARY HOUSING, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Joseph M. Macchione

  
	
   

  	
   

  	
  Vice President and Secretary

  

 

 

To
induce the Credit Parties to enter into this Agreement, the undersigned jointly
and severally (a) consent and agree to this letter’s execution and
delivery, (b) ratify and confirm that all guaranties, assurances, and
Liens granted, conveyed, or assigned to the Credit Parties under the Loan
Documents are not released, diminished, impaired, reduced, or otherwise
adversely affected by this Agreement and continue to guarantee, assure, and
secure the full payment and performance of all present and future Obligations
(except to the extent specifically limited by the terms of such guaranties,
assurances, or Liens), and (c) waive notice of acceptance of this consent
and agreement, which consent and agreement binds the undersigned and their
successors and permitted assigns and inures to the Credit Parties and their
respective successors and permitted assigns.

 

	
   

  	
  GMH COMMUNITIES TRUST, a Maryland real estate

  investment trust, as a
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Name:
  Joseph M. Macchione

  
	
   

  	
   

  	
  Title:
  Senior Vice President and General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GMH COMMUNITIES LP, a Delaware limited partnership, as

  a Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GMH COMMUNITIES GP TRUST, a Delaware trust,

  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Name:
  Joseph M. Macchione

  
	
   

  	
   

  	
  Title:
  Seecretary

  

 

 

	
   

  	
  SOUTH CAROLINA ASSOCIATES, LLC, a Delaware

  limited liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  CROYDEN AVENUE ASSOCIATES, LLC, a Delaware

  limited liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  MONKS ROAD ASSOCIATES, LLC, a Delaware limited

  liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  LUBBOCK TWO ASSOCIATES, LLC, a Delaware limited

  liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  DENTON ASSOCIATES, LLC, a Delaware limited liability

  company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  SAVOY VILLAGE ASSOCIATES, LLC, a Delaware limited

  liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  RENO ASSOCIATES, LLC, a Delaware limited liability

  company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  COLLEGE PARK INVESTMENTS LLC, a Delaware limited

  liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  COLLEGE PARK MANAGEMENT LLC, a Delaware limited

  liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  GMH MILITARY HOUSING LLC, a Delaware limited liability

  company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  GMH MILITARY HOUSING INVESTMENTS LLC, a

  Delaware limited liability company, as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Name:
  Joseph M. Macchione

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

 

	
   

  	
  COLLEGE PARK MANAGEMENT TRS, INC., a Delaware

  corporation, as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Joseph M. Macchione

  
	
   

  	
   

  	
  Vice President and Secretary

  

 

 

For the Quarter/Year ended                      (“Statement
Date”)

 

SCHEDULE 1
to the Compliance Certificate

($ in 000’s)

 

	
  I.

  	
   

  	
  Section 7.10(a) – Minimum Net Worth.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A.

  	
   

  	
  GAAP Net Worth:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Intangible Assets

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Accumulated Depreciation and Amortization

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Consolidated Tangible Net Worth (Line I.A. – Line
  I.B. + Line I.C.)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  75% of Net Proceeds of Equity Issuances after date
  of the Agreement:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  Minimum required Net Worth ($275,000,000 + Line
  I.E.):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  
	
  G.

  	
   

  	
  Excess or (deficiency) for covenant compliance (Line
  I.D. – I.F.):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Section 7.10(b) –Interest Coverage Ratio.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Consolidated
  EBITDA (See Schedule 2)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Capital
  Expenditure Reserve

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  Adjusted
  EBITDA (Line II.A. – Line II.B.)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.

  	
  Interest
  Expense

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E.

  	
  Ratio
  of Line II.C. to II.D.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  Required

  	
   

  	
  2.0
  to 1.0

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Section 7.10(c) –Fixed Charge Coverage Ratio.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Consolidated
  EBITDA (See Schedule 2)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Capital
  Expenditure Reserve

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  Adjusted
  EBITDA (Line III.A. – Line III.B.)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.

  	
  Interest
  Expense

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E.

  	
  Preferred
  Stock Dividends

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  F.

  	
  Scheduled
  Principal Payments (excluding balloon payments)

  	
   

  	
  $

  
							

 

 

	
   

  	
   

  	
  G.

  	
  Fixed
  Charges (Line III.D. + Line III.E + Line III.F.)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  H.

  	
  Ratio
  of III.C. to III.G.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  Required

  	
   

  	
  1.75
  to 1.0

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  Section 7.10(d) –Unsecured Interest Coverage Ratio.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  NOI
  from Unencumbered Properties (See Schedule 2)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Consolidated EBITDA from operation of Military Housing Projects

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
  C.

  	
  Consolidated EBITDA from operation of Student Housing Projects owned
  by third parties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.

  	
  Capital Expenditure Reserve

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E.

  	
  Adjusted
  Borrowing Base Cash Flow

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Line
  IV.A. + Line IV.B. + Line IV.C. – Line IV.D.)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  F.

  	
  Interest
  Expense on Indebtedness which is not Secured Debt

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  G.

  	
  Ratio
  of IV.E. to IV.F.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  Required

  	
   

  	
  2.25
  to 1.0

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  Section 7.10(e) – Leverage Ratio.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Total
  Debt

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Total
  Asset Value (See Schedule 1)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  Ratio
  of V.A. to V.B.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  Allowed

  	
  [60%
  after December 31, 2005]

  
	
   

  	
   

  	
   

  	
  [65%
  through December 31, 2005]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  Section 7.10(f) –Total Recourse Debt.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Actual Recourse Debt (including the Obligations)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Borrowing Base Value (See Schedule 1)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  (Excess)
  or deficiency for covenant compliance (Line VI.A. – VI.B.):

  	
   

  	
  $

  
							

 

 

	
  VII.

  	
   

  	
  Section 7.03(f)(i) – Secured Recourse Debt other than the
  Obligations.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Actual Secured Recourse Debt
  (excluding the Obligations)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Maximum Permitted

  	
   

  	
  $25,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  (Excess)
  or deficiency for covenant compliance (Line VII.A. – VII.B.):

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  Section 7.03(f)(ii) - – Unsecured Recourse Debt other than
  the Obligations.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Actual Unsecured Recourse Debt
  (excluding the Obligations)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Maximum Permitted

  	
   

  	
  $125,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  Complies with the provision of Section 7.03(f)(ii)(A)-(E)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  (Excess)
  or deficiency for covenant compliance (Line VII.A. – VII.B.):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  Section 7.05(d) and (e) –Restricted Payments.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  GMH
  Operating Partnership:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  Funds
  from Operations

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  Distributions

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  Percent
  (ii) / (i) (not to exceed 95%)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Trust:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  Funds
  from Operations

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  Distributions

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  Percent
  (ii) / (i) (not to exceed 95%)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X.

  	
   

  	
  Section 7.02(b) – Investments

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
  Total Asset

  	
   

  	
  Maximum

  	
   

  
	
  Investments

  	
   

  	
  Amount

  	
   

  	
  Value

  	
   

  	
  Allowed

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
  Investments
  in raw land

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
  10

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
  Investments
  in Properties under construction

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  (iii)

  	
  Unconsolidated
  Affiliates

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
  20

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  Other
  Non-Real Estate Investments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  10

  	
  %

  
	
   

  	
  (v)

  	
  Indebtedness
  secured by Real Property 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (vi)

  	
  All
  Investments described in (i) through (v) above

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
  30

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XI.

  	
  Section 7.10(g) – Maximum Unhedged Variable Rate Debt

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Actual Variable Rate Debt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Total Indebtedness

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Ratio of Line X.A. to Line X.B.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Maximum Permitted

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  30

  	
  %

  
											

 

 

SCHEDULE 2

 

TO COMPLIANCE CERTIFICATE

 

CALCULATION OF TOTAL ASSET VALUE AND BORROWING BASE
VALUE

 

	
  A.

  	
   

  	
  TOTAL ASSET VALUE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  $

  	
  (a)

  	
   

  	
  the lesser of (i) the book value of the Student Housing Projects
  plus accumulated depreciation on such Student Housing Projects or
  (ii) the most recent MAI Appraisal Value of the Student Housing Projects.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  $

  	
  (a)

  	
   

  	
  (i) The Companies’ Military Housing EBITDA for the
  three month period ending on the last day of the fiscal quarter ending on
  date of determination times (ii) 4, multiplied by (b) 8.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  $

  	
  (a)

  	
   

  	
  (i) Consolidated EBITDA from the Companies’ management of
  third party owned Student Housing Projects for the three month period ending
  on the last day of the fiscal quarter ending on date of determination times
  (ii) 4, multiplied by (b) 3.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  $

  	
   

  	
   

  	
  Sum
  of Items 2 and 3
  (limited to 20% of Total Asset Value).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  $

  	
   

  	
   

  	
  Book
  value of other assets
  (excluding owned real estate to the extent captured in Item (1)(a)(i)) owned
  by the Borrowers and Guarantors, as determined on a consolidated basis in
  accordance with GAAP.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  $

  	
   

  	
   

  	
  GMH Operating Partnership’s
  and each Guarantor’s pro rata share of the book value of assets in joint
  ventures of such Person that own student housing properties.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  $

  	
   

  	
   

  	
  Sum
  of Items 1, 4, 5 and
  6.*

  

 

	
  *

  	
   

  	
  Current assets that are
  incurred in the normal course of business shall be excluded from Total Asset
  Value.

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  BORROWING BASE VALUE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  $

  	
   

  	
   

  	
  the lesser of (a) the sum of (i) the
  aggregate book value of Unencumbered Properties plus (ii) accumulated
  depreciation of such Unencumbered Properties, as determined on a consolidated

  
						

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  basis in accordance with GAAP,
  or (b) the most recent MAI Appraisal Value of the Unencumbered
  Properties. *

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  $

  	
   

  	
   

  	
  Item
  1 multiplied by 0.60.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  $

  	
  (a)

  	
   

  	
  (i) The
  Companies’ Military
  Housing EBITDA for the three month period ending on the last day of the
  fiscal quarter ending on date of determination times (ii) 4, multiplied
  by (b) 8.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  $

  	
  (a)

  	
   

  	
  (i) Consolidated EBITDA from the Companies’ management of
  third party owned Student Housing Projects for the three month period ending
  on the last day of the fiscal quarter ending on date of determination times
  (ii) 4, multiplied by (b) 3.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  $

  	
   

  	
   

  	
  Sum
  of Item 3 + Item 4.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  $

  	
   

  	
   

  	
  Item
  5 multiplied by 0.50
  (limited to 50% of Borrowing Base Value).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  $

  	
   

  	
   

  	
  Sum of 2
  + 6.

  

 

	
  *

  	
   

  	
  The Unencumbered Asset Value of any single Unencumbered Property may
  not exceed 30% of the Borrowing Base Value

  

 

 

EXHIBIT I

 

UNENCUMBERED PROPERTIES

 

	
  Property

  	
   

  	
  Occupancy

  	
   

  	
  Approved

  Costs

  	
   

  	
  Adjusted Property

  NOI

  	
   

  	
  NO1

  Value

  	
   

  	
  MAI Appraisal

  Value

  	
   

  	
  Unencumbered Asset

  Value

  	
   

  	
  Capital Expenditure Reserves

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (000’s)

  	
   

  	
  (000’s)

  	
   

  	
  (000’s)

  	
   

  	
  (000’s)

  	
   

  	
  (000’s)

  	
   

  	
  (000’s)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]