Document:

Exhibit
10.1

 

AGREEMENT

 

AGREEMENT (“Agreement”), dated as of May 14, 2004, by
and between New Plan Excel Realty Trust, Inc., a Maryland corporation
(“Company”), and Dean Bernstein (“Executive”).

 

RECITALS

 

A.            Executive
is currently Senior Vice President, Acquisitions/Dispositions of the Company.

 

B.            The
Company and Executive entered into an employment agreement dated as of
September 25, 1998 (as amended and extended, the “Employment Agreement”).  Pursuant to the terms of the Employment
Agreement, the term of the “Employment Period” under the Employment Agreement
expires on December 31, 2004.

 

C.            The
Company desires to extend the “Employment Period” under the Employment
Agreement for a

term of two (2) years (i.e., from January 1, 2005 through December 31,
2006) and otherwise on the same terms and conditions as the Employment
Agreement (the “Bernstein Employment Agreement Extension”).

 

D.            The
Executive Compensation and Stock Option Committee of the Board of Directors of
the Company by Unanimous Written Consent dated as of May  , 2004 authorized and approved the Bernstein
Employment Agreement Extension.

 

AGREEMENT

 

IN CONSIDERATION of the premises and the mutual
covenants set forth below, the parties hereby agree to modify the terms of the
Employment Agreement as follows:

 

1.                                       The Employment Period under the
Employment Agreement shall be extended for a term of two (2) years and
accordingly shall expire on December 31, 2006, subject to the extension
provisions contained in Paragraph 2 of the Employment Agreement.

 

2.                                           Except as herein provided, all of the
terms and provisions of the Employment Agreement shall remain unmodified and in
full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the date first above written.

 

 

	
   

  	
  NEW PLAN EXCEL REALTY TRUST, INC., a 

  Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Steven F. Siegel

  	
   

  
	
   

  	
  Name: Steven F. Siegel

  
	
   

  	
  Title:  Executive Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEAN BERNSTEIN

  
	
   

  	
   

  
	
   

  	
    /s/ Dean BernsteinExhibit 10.2

 

May 13, 2004

 

Glenn J. Rufrano

1120 Avenue of the Americas

Suite 1200

New York, NY  10036

 

Dear Mr. Rufrano:

 

Reference is made to the Employment Agreement, dated as of
February 23, 2000 (the “Employment Agreement”), by and between you and us.  Capitalized terms used in this letter have
the meanings assigned to them in the Employment Agreement.

 

Pursuant to the terms of the Employment Agreement, the term of the
Employment Period continues through February 23, 2005, and thereafter, the
Employment Period automatically extends for one additional year unless either
party provides notice of nonrenewal not less than nine months prior to the date
on which such extension would be effective (i.e., by no later than May 24,
2004).  You and we hereby agree that,
notwithstanding the terms of the Employment Agreement, such notice of
nonrenewal need only be provided no later than August 9, 2004 with respect to
the period ending February 23, 2005.

 

If the foregoing is consistent with your understanding, please indicate
your agreement to the foregoing by signing below.

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEW
  PLAN EXCEL REALTY TRUST, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Steven F. Siegel

  	
   

  
	
   

  	
   

  	
   

  	
  Steven F. Siegel

  
	
   

  	
   

  	
   

  	
  Executive Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED TO:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
      /s/ Glenn J. Rufrano

  	
   

  	
   

  	
   

  
	
  Glenn J. RufranoExhibit 10.3

 

July 27, 2004

 

Glenn
J. Rufrano

1120 Avenue of the Americas

Suite 1200

New York, NY  10036

 

Dear
Mr. Rufrano:

 

Reference
is made to the Employment Agreement, dated as of February 23, 2000 (as
amended by that certain side letter agreement dated as of May 13, 2004, the
“Employment Agreement”), by and between you and us.  Capitalized terms used in this letter have the meanings assigned
to them in the Employment Agreement.

 

Pursuant
to the terms of the Employment Agreement, the term of the Employment Period
continues through February 23, 2005, and thereafter, the Employment Period
automatically extends for one additional year unless either party provides
notice of nonrenewal by no later than August 9, 2004.  You and we hereby agree that, notwithstanding the terms of the
Employment Agreement, such notice of nonrenewal need only be provided no later
than October 9, 2004 with respect to the period ending February 23, 2005.

 

If
the foregoing is consistent with your understanding, please indicate your agreement
to the foregoing by signing below.

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEW
  PLAN EXCEL REALTY TRUST, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/
  Steven F. Siegel

  	
   

  
	
   

  	
   

  	
   

  	
  Steven
  F. Siegel

  
	
   

  	
   

  	
   

  	
  Executive Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED TO:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Glenn J. Rufrano

  	
   

  	
   

  	
   

  
	
  Glenn
  J. Rufrano

  	
   

  	
   

  	
   

  
	
  July
  27, 2004Exhibit 10.4

 

Published
CUSIP Number: 64805FAA7

 

FIRST AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT

 

BY AND AMONG

 

NEW PLAN EXCEL REALTY TRUST,
INC.,

 

THE LENDERS PARTY HERETO,

 

AND

 

BANK OF AMERICA, N.A.,

 

AS ADMINISTRATIVE AGENT

 

DATED AS OF JUNE 29, 2004

 

BANC OF AMERICA SECURITIES LLC
AND BNY CAPITAL MARKETS, INC.

 

AS JOINT LEAD ARRANGERS,

 

BANC OF AMERICA SECURITIES LLC

 

AS SOLE BOOK MANAGER,

 

THE BANK OF NEW YORK

 

AS SYNDICATION AGENT,

 

JPMORGAN CHASE BANK

 

KEYBANK NATIONAL ASSOCIATION AND

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION

 

AS CO-DOCUMENTATION AGENTS

 

AND

 

SUNTRUST BANK, AS MANAGING AGENT

 

 

	
  1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Defined
  Terms

  	
   

  
	
   

  	
  1.2

  	
  Other Interpretive
  Provisions

  	
   

  
	
   

  	
  1.3

  	
  Accounting
  Terms

  	
   

  
	
   

  	
  1.4

  	
  Rounding

  	
   

  
	
   

  	
  1.5

  	
  Times of Day

  	
   

  
	
   

  	
  1.6

  	
  Letter of Credit Amounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  AMOUNT AND TERMS OF LOANS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Revolving Credit Loans

  	
   

  
	
   

  	
  2.2

  	
  Notes

  	
   

  
	
   

  	
  2.3

  	
  Procedure for
  Revolving Credit Loan Borrowings Other than Competitive Advances

  	
   

  
	
   

  	
  2.4

  	
  Competitive Advances

  	
   

  
	
   

  	
  2.5

  	
  Letters
  of Credit

  	
   

  
	
   

  	
  2.6

  	
  Repayment of
  Loans; Evidence of Debt

  	
   

  
	
   

  	
  2.7

  	
  Prepayments of the Loans

  	
   

  
	
   

  	
  2.8

  	
  Conversions

  	
   

  
	
   

  	
  2.9

  	
  Interest Rate and Payment
  Dates

  	
   

  
	
   

  	
  2.10

  	
  Substituted Interest Rate

  	
   

  
	
   

  	
  2.11

  	
  Taxes;
  Net Payments

  	
   

  
	
   

  	
  2.12

  	
  Illegality

  	
   

  
	
   

  	
  2.13

  	
  Increased
  Costs

  	
   

  
	
   

  	
  2.14

  	
  Indemnification
  for Break Funding Losses

  	
   

  
	
   

  	
  2.15

  	
  Use of
  Proceeds

  	
   

  
	
   

  	
  2.16

  	
  Capital
  Adequacy

  	
   

  
	
   

  	
  2.17

  	
  Administrative Agent’s
  Records

  	
   

  
	
   

  	
  2.18

  	
  Extension of Maturity Date

  	
   

  
	
   

  	
  2.19

  	
  Representative of Borrower

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  FEES; PAYMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Facility
  Fee

  	
   

  
	
   

  	
  3.2

  	
  Payments; Application
  of Payments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Existence
  and Power

  	
   

  
	
   

  	
  4.2

  	
  Authority

  	
   

  
	
   

  	
  4.3

  	
  Binding
  Agreement

  	
   

  
	
   

  	
  4.4

  	
  Subsidiaries;
  DownREIT Partnerships

  	
   

  
	
   

  	
  4.5

  	
  Litigation

  	
   

  
	
   

  	
  4.6

  	
  Required
  Consents

  	
   

  
	
   

  	
  4.7

  	
  No Conflicting Agreements

  	
   

  
	
   

  	
  4.8

  	
  Compliance with
  Applicable Laws

  	
   

  
	
   

  	
  4.9

  	
  Taxes

  	
   

  
	
   

  	
  4.10

  	
  Governmental Regulations

  	
   

  

 

 

	
   

  	
  4.11

  	
  Federal
  Reserve Regulations; Use of Loan Proceeds

  	
   

  
	
   

  	
  4.12

  	
  Plans; Multiemployer Plans

  	
   

  
	
   

  	
  4.13

  	
  Financial Statements

  	
   

  
	
   

  	
  4.14

  	
  Property

  	
   

  
	
   

  	
  4.15

  	
  Franchises,
  Intellectual Property, Etc

  	
   

  
	
   

  	
  4.16

  	
  Environmental Matters

  	
   

  
	
   

  	
  4.17

  	
  Labor
  Relations

  	
   

  
	
   

  	
  4.18

  	
  [Intentionally Omitted.]

  	
   

  
	
   

  	
  4.19

  	
  Solvency

  	
   

  
	
   

  	
  4.20

  	
  REIT Status

  	
   

  
	
   

  	
  4.21

  	
  List of Unencumbered Assets

  	
   

  
	
   

  	
  4.22

  	
  Operation of Business

  	
   

  
	
   

  	
  4.23

  	
  No Misrepresentation

  	
   

  
	
   

  	
  4.24

  	
  Anti-Terrorism
  Laws

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  CONDITIONS
  TO EFFECTIVENESS OF THIS AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Evidence
  of Action

  	
   

  
	
   

  	
  5.2

  	
  This
  Agreement

  	
   

  
	
   

  	
  5.3

  	
  Notes

  	
   

  
	
   

  	
  5.4

  	
  Guaranty

  	
   

  
	
   

  	
  5.5

  	
  Litigation

  	
   

  
	
   

  	
  5.6

  	
  Opinion of Counsel
  to the Borrower

  	
   

  
	
   

  	
  5.7

  	
  Fees

  	
   

  
	
   

  	
  5.8

  	
  Fees and Expenses
  of Special Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  CONDITIONS OF LENDING
  – ALL LOANS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Compliance

  	
   

  
	
   

  	
  6.2

  	
  Loan
  Closings

  	
   

  
	
   

  	
  6.3

  	
  Requests

  	
   

  
	
   

  	
  6.4

  	
  Documentation and
  Proceedings

  	
   

  
	
   

  	
  6.5

  	
  Required Acts and
  Conditions

  	
   

  
	
   

  	
  6.6

  	
  Approval of Special Counsel

  	
   

  
	
   

  	
  6.7

  	
  Supplemental Opinions

  	
   

  
	
   

  	
  6.8

  	
  Other
  Documents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Financial Statements

  	
   

  
	
   

  	
  7.2

  	
  Certificates; Other
  Information

  	
   

  
	
   

  	
  7.3

  	
  Legal
  Existence

  	
   

  
	
   

  	
  7.4

  	
  Taxes

  	
   

  
	
   

  	
  7.5

  	
  Insurance

  	
   

  
	
   

  	
  7.6

  	
  Payment
  of Indebtedness and Performance of Obligations

  	
   

  
	
   

  	
  7.7

  	
  Maintenance of Property;
  Environmental Investigations

  	
   

  
	
   

  	
  7.8

  	
  Observance of Legal
  Requirements

  	
   

  
	
   

  	
  7.9

  	
  Inspection of Property; Books
  and Records; Discussions

  	
   

  
	
   

  	
  7.10

  	
  Licenses,
  Intellectual Property

  	
   

  

 

 

	
   

  	
  7.11

  	
  Additional Guarantors

  	
   

  
	
   

  	
  7.12

  	
  REIT Status;
  Operation of Business

  	
   

  
	
   

  	
  7.13

  	
  More Restrictive Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Liens

  	
   

  
	
   

  	
  8.2

  	
  Merger, Consolidation
  and Certain Dispositions of Property

  	
   

  
	
   

  	
  8.3

  	
  Investments,
  Loans, Etc

  	
   

  
	
   

  	
  8.4

  	
  Business
  Changes

  	
   

  
	
   

  	
  8.5

  	
  Amendments to
  Organizational Documents

  	
   

  
	
   

  	
  8.6

  	
  [Intentionally Omitted.]

  	
   

  
	
   

  	
  8.7

  	
  Sale
  and Leaseback

  	
   

  
	
   

  	
  8.8

  	
  Transactions with
  Affiliates

  	
   

  
	
   

  	
  8.9

  	
  Issuance
  of Additional Capital Stock by Subsidiary Guarantors

  	
   

  
	
   

  	
  8.10

  	
  Hedging
  Agreements

  	
   

  
	
   

  	
  8.11

  	
  Restricted Payments

  	
   

  
	
   

  	
  8.12

  	
  Unencumbered Assets
  Coverage Ratio

  	
   

  
	
   

  	
  8.13

  	
  Fixed Charge Coverage
  Ratio.

  	
   

  
	
   

  	
  8.14

  	
  Minimum Tangible Net Worth.

  	
   

  
	
   

  	
  8.15

  	
  Maximum Total Indebtedness.

  	
   

  
	
   

  	
  8.16

  	
  Indebtedness
  to Unencumbered Assets Ratio.

  	
   

  
	
   

  	
  8.17

  	
  Maximum Book
  Value of Ancillary Assets

  	
   

  
	
   

  	
  8.18

  	
  Development Activity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  DEFAULT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Events
  of Default

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  THE AGENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Appointment and Authority

  	
   

  
	
   

  	
  10.2

  	
  Rights
  as a Lender

  	
   

  
	
   

  	
  10.3

  	
  Exculpatory Provisions

  	
   

  
	
   

  	
  10.4

  	
  Reliance by
  Administrative Agent

  	
   

  
	
   

  	
  10.5

  	
  Notice
  of Default

  	
   

  
	
   

  	
  10.6

  	
  Delegation of Duties

  	
   

  
	
   

  	
  10.7

  	
  Indemnification

  	
   

  
	
   

  	
  10.8

  	
  Successor Administrative
  Agent

  	
   

  
	
   

  	
  10.9

  	
  Non-Reliance
  on Administrative Agent and Other Lenders

  	
   

  
	
   

  	
  10.10

  	
  No Other Duties,
  Etc

  	
   

  
	
   

  	
  10.11

  	
  Administrative
  Agent May File Proofs of Claim

  	
   

  
	
   

  	
  10.12

  	
  Guaranty
  Matters

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  OTHER PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Amendments and Waivers

  	
   

  
	
   

  	
  11.2

  	
  Notices

  	
   

  
	
   

  	
  11.3

  	
  No Waiver;
  Cumulative Remedies

  	
   

  

 

 

	
   

  	
  11.4

  	
  Survival of
  Representations and Warranties

  	
   

  
	
   

  	
  11.5

  	
  Payment of Expenses and
  Taxes

  	
   

  
	
   

  	
  11.6

  	
  Lending
  Offices

  	
   

  
	
   

  	
  11.7

  	
  Successors and Assigns

  	
   

  
	
   

  	
  11.8

  	
  [Intentionally Omitted]

  	
   

  
	
   

  	
  11.9

  	
  Counterparts;
  Integration; Effectiveness

  	
   

  
	
   

  	
  11.10

  	
  Adjustments;
  Set-off

  	
   

  
	
   

  	
  11.11

  	
  Lenders’ Representations

  	
   

  
	
   

  	
  11.12

  	
  Indemnity

  	
   

  
	
   

  	
  11.13

  	
  Governing
  Law

  	
   

  
	
   

  	
  11.14

  	
  Headings Descriptive

  	
   

  
	
   

  	
  11.15

  	
  Severability

  	
   

  
	
   

  	
  11.16

  	
  [Intentionally Omitted.]

  	
   

  
	
   

  	
  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

  	
   

  
	
   

  	
  11.21

  	
  Termination

  	
   

  
	
   

  	
  11.22

  	
  Replacement
  Notes

  	
   

  
	
   

  	
  11.23

  	
  USA PATRIOT
  Act Notice

  	
   

  
	
   

  	
  11.24

  	
  Replacement of Lenders

  	
   

  
	
   

  	
  11.25

  	
  Relationships

  	
   

  

 

 

LIST OF EXHIBITS AND SCHEDULES

 

	
  EXHIBITS:

  	
   

  	
   

  
	
   

  
	
  Exhibit A

  	
  -

  	
  Assignment
  and Assumption

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Borrowing
  Request

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Commitments
  and Domestic LIBOR Lending Offices

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Competitive
  Advance Note

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Competitive
  Bid

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Competitive
  Bid Request

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  Compliance
  Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  -

  	
  Guaranty

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  -

  	
  Reserved

  
	
   

  	
   

  	
   

  
	
  Exhibit J

  	
  -

  	
  Swing Loan
  Note

  
	
   

  	
   

  	
   

  
	
  Exhibit K

  	
  -

  	
  Revolving
  Credit Note

  
	
   

  	
   

  	
   

  
	
  Exhibit L

  	
  -

  	
  Letter of
  Credit Request

  
	
   

  	
   

  	
   

  
	
  Exhibit M

  	
  -

  	
  Form of
  Notice of Conversion

  
	
   

  	
   

  	
   

  
	
  Exhibit N

  	
   

  	
  Reserved

  
	
   

  	
   

  	
   

  
	
  Exhibit O

  	
   

  	
  Secretary’s
  Certificate Borrower

  
	
   

  	
   

  	
   

  
	
  Exhibit P

  	
   

  	
  Secretary’s
  Certificate Guarantor

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
   

  	
  Existing
  Letters of Credit

  
	
   

  	
   

  	
   

  
	
  Schedule 4.4

  	
  -

  	
  Subsidiaries
  (including Subsidiary Guarantors)

  
	
   

  	
   

  	
   

  
	
  Schedule 4.5

  	
  -

  	
  Litigation

  
	
   

  	
   

  	
   

  
	
  Schedule 4.12

  	
  -

  	
  Plans

  
	
   

  	
   

  	
   

  
	
  Schedule 4.21

  	
  -

  	
  List of
  Unencumbered Assets

  
					

 

 

FIRST AMENDED AND RESTATED REVOLVING CREDIT
AGREEMENT, dated as of June 29, 2004, 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, Fleet National Bank,
individually and as administrative agent (“FNB”) and the other lenders a party
thereto, entered into that certain Revolving Credit Agreement dated as of
April 26, 2002, as amended by that certain First Amendment to Revolving
Credit Agreement dated November 6, 2002, among Borrower, FNB and the other
lenders a party thereto and as further amended by that certain Second Amendment
to Revolving Credit Agreement dated as of September 29, 2003, among
Borrower, FNB and the other lenders a party thereto (as modified and amended,
collectively, the “Original Credit Agreement”);

 

WHEREAS, FNB, individually and as
administrative agent, assigned all of its rights and obligations under the
Original Credit Agreement to Bank of America, individually and as
Administrative Agent;

 

WHEREAS, Borrower has requested that the
Lenders and Administrative Agent amend certain provisions of the Original
Credit Agreement; and

 

WHEREAS, in connection therewith,
Administrative Agent, Borrower and the Lenders desire to amend and restate the
Original Credit 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 Original Credit 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:

 

“Absolute Rate Bid”:  as defined in Section 2.4(b).

 

“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.

 

“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:

 

(i)                                     the
Operating Property Value; plus

 

 

(ii)                                  the
book value of Land Assets, Redevelopment Assets, New Construction 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

 

(iii)                               to
the extent not included pursuant to (ii) above, Borrower’s pro rata share of
the book value of Land Assets, New Construction Assets, Redevelopment Assets
and Notes Receivable of Joint Ventures (including, without limitation, all
capitalized costs incurred in connection therewith) on the last day of the
fiscal quarter just ended; plus

 

(iv)                              the
aggregate amount of the unpledged portion of (x) all unrestricted cash and
marketable securities of Borrower and its Subsidiaries (including, without
limitation, Investments described in Sections 8.3(a) through 8.3(f)) plus
(y) 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.

 

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, a LIBOR Loan or a Competitive Advance, as the
case may be.

 

“Affected Advance”:  as defined in Section 2.10.

 

“Affected Principal Amount”:  in the event that (i) the Borrower shall
fail for any reason to borrow or convert after it shall have notified the
Administrative Agent of its intent to do so in any instance in which it shall
have requested a LIBOR Loan on the Effective Date or pursuant to
Section 2.3 or 2.8, or a Swing Loan pursuant to Section 2.1A, or
shall have accepted one or more offers of Competitive Advances under
Section 2.4, an amount equal to the principal amount of such LIBOR Loan,
Swing Loan or Competitive Advance; (ii) a LIBOR Loan, Swing Loan or Competitive
Advance shall terminate for any reason prior to the last day of the Interest

 

2

 

Period applicable thereto, an amount equal to the principal amount of
such LIBOR Loan, Swing Loan or Competitive Advance; or (iii) the Borrower shall
prepay or repay all or any part of the principal amount of a LIBOR Loan, Swing
Loan or Competitive Advance 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, Swing Loan or Competitive Advance so
prepaid or repaid.

 

“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, (i) to vote 10%
or more of the securities having ordinary voting power for the election of
directors of such Person or (ii) to direct or cause the direction of the
management and policies of such Person, whether by contract or otherwise.

 

“Agreement”:  this First Amended and Restated Revolving Credit Agreement, as
the same may be amended, supplemented or otherwise modified from time to time.

 

“Agreement Regarding Fees”:  that certain Agreement Regarding Fees dated
of even date herewith between Bank of America 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 (including single tenant retail properties), 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”:  (i) in respect of any Lender, (A) in the
case of such Lender’s Prime Rate Loans and Competitive Advances, its Domestic
Lending Office and (B) in the case of such Lender’s LIBOR Loans, its LIBOR
Lending Office, and (ii) in respect of the Swing Loan Lender and the Issuing
Lender, the Domestic Lending Office of each thereof.

 

“Applicable Margin”:  (i) 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, (ii) with respect to the
calculation of the Facility Fee pursuant to Section 3.1, at all times
during which the applicable Pricing Level set forth below is in effect (the
“Applicable Facility Fee Percentage”), and (iii) with respect to the
calculation of the Letter of Credit Commission Fees pursuant to
Section 2.5(f), 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/

  Letter of Credit

  Commission Fee

  	
   

  	
  Prime Rate
  Loans

  	
   

  	
  Applicable
  Facility Fee

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pricing Level I

  	
   

  	
  0.600

  	
  %

  	
  0

  	
  %

  	
  0.150

  	
  %

  
	
  Pricing Level II

  	
   

  	
  0.650

  	
  %

  	
  0

  	
  %

  	
  0.200

  	
  %

  
	
  Pricing Level III

  	
   

  	
  0.800

  	
  %

  	
  0

  	
  %

  	
  0.200

  	
  %

  
	
  Pricing Level IV

  	
   

  	
  1.125

  	
  %

  	
  0.250

  	
  %

  	
  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

 

3

 

Borrower, as determined by S&P or Moody’s, 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.

 

“Assignment and Assumption Agreement”:  an assignment and assumption entered into by
a Lender and an Eligible 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 Section 11.7(b).

 

“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.

 

“Available Commitment Amount”: on any
day, an amount equal to the Total Commitment Amount at such time minus the
total of all Competitive Advances outstanding on such date.

 

“Benefited Lender”:  as defined in Section 11.10.

 

“Book Manager”:  Banc of America Securities LLC.

 

“Borrower’s Interest”:  for any period, (i) 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 (ii) with respect to any Ancillary Asset or Redevelopment Asset, the
percentage of profits and losses with respect thereto to which the Borrower or
its wholly owned Subsidiaries, directly or indirectly, may be entitled to
receive for such period.

 

“Borrowing Date”:  any Business Day specified in a Borrowing
Request delivered pursuant to Sections 2.1, 2.1A or 2.3, or in a Competitive
Bid Request delivered pursuant Section 2.4, as the case may be, as a date
on which the Borrower requests the Lenders or the Swingline Lender to make
Loans.

 

“Borrowing Request”:  a borrowing request in the form of Exhibit
B hereto.

 

“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

 

4

 

such day on which dealings in Dollar deposits are conducted by and
between banks in the London interbank eurodollar market.

 

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

 

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

 

“Cash Collateralize”:  to pledge and deposit with or deliver to
Administrative Agent, for the benefit of Issuing Lender and the Lenders, as
collateral for the Letter of Credit Exposure, cash or deposit account balances
pursuant to documentation in form and substance satisfactory to Administrative
Agent and Issuing Lender (which documents are hereby consented to by the
Lenders).  Borrower hereby grants
Administrative Agent, for the ratable benefit of the Issuing Lender and
Lenders, a first priority lien on all such cash and deposit account balances.  Cash collateral shall be maintained in
blocked, non-interest bearing deposit accounts at Administrative Agent.

 

“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 1a of Form 8-K in effect on the date hereof
(or any successor provision, including, without limitation, Item 5.01 set forth
in SEC Release 33-8400; 34-49424, if and when such changes become effective)
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.

 

5

 

“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.

 

“Commitment”:  in respect of any Lender, such Lender’s
undertaking to make Loans (other than Swing Loans), or purchase participations
or subparticipations in Letters of Credit issued by the Issuing Lender or
purchase participations in Swing Loans to the Borrower, 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 C under the heading “Commitments” as such
Lender’s Commitment Amount, as the same may be reduced pursuant to
Section 2.3(g), and as the same may otherwise be changed in accordance
with the terms of this Agreement.

 

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

 

“Competitive Advance”: means an
Advance made to Borrower by any Lender not determined by that Lender’s
Commitment Percentage pursuant to Section 2.4.

 

“Competitive Advance Note”: means the
promissory note made by Borrower in favor of a Lender to evidence the
Competitive Advances made by that Lender, substantially in the form of Exhibit D,
either as originally executed or as the same may from time to time be
supplemented, modified, amended, renewed, extended or supplanted.

 

“Competitive Bid”: means a written bid
to provide a Competitive Advance substantially in the form of Exhibit E,
signed by a Responsible Official of a Lender and properly completed to provide
all information required to be included therein.

 

“Competitive Bid Request”: means a
written request submitted by Borrower to the Administrative Agent to provide a
Competitive Bid, substantially in the form of Exhibit F signed by
an Authorized Signatory of Borrower and properly completed to provide all
information required to be included therein.

 

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

 

“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).

 

6

 

“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:  (i) the aggregate amount of all interest
expense, both expensed and capitalized (including Consolidated Interest
Expense) for such period, (ii) 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 (iii)
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) (i) 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 (ii) any guarantee 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 Joint Ventures in which Borrower is a direct or indirect investor
that are not consolidated in the Borrower’s Consolidated balance sheet or that
are FIN 46 Entities, Consolidated Total Indebtedness shall also include (x) the
aggregate principal amount of all Indebtedness of such Joint Ventures if such
Indebtedness is recourse to the Borrower or one of its Subsidiaries, and (y) Borrower’s
pro rata share of the aggregate principal amount of all Indebtedness of such
Joint Ventures if such Indebtedness is Non-Recourse Indebtedness.  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 (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

 

7

 

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 (a) the endorsement of instruments for deposit or collection
in the ordinary course of business, or (b) 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.  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, the Lead Arranger,
each Lender, the Swing Loan Lender, the Issuing Lender, the Syndication Agent,
the Book Manager, the Documentation Agent, the Managing Agent, and their
successors and assigns.

 

“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,
(i) has failed to comply with any of its obligations to make a Loan, fund its
share of any payment made by the Issuing Lender pursuant to a Letter of Credit
or acquire a participation in any Swing Loan as required pursuant to this
Agreement within one (1) Business Day of the date required to be funded by it
hereunder, (ii) 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, or (iii) has been deemed insolvent
or become subject to a bankruptcy or insolvency proceeding.

 

“Documentation Agent”:  collectively, Wells Fargo Bank, National
Association, KeyBank National Association and JPMorgan Chase Bank, as
co-documentation agents.

 

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

 

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

 

8

 

“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.) (i) 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 (ii) the Borrower or
its 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.

 

“Eligible Assignee”: (a) a Lender; (b)
an Affiliate of a Lender; (c) an Approved Fund; and (d) any other Person (other
than a natural person) approved by (i) the Administrative Agent, the Issuing
Lender and the Swing Loan Lender (provided, however, that the Administrative
Agent’s, the Issuing Lender’s and the Swing Loan Lender’s approval shall not be
required following and during the continuation of an Event of Default so long
as such assignee is a financial institution having a net worth of not less than
$300,000,000.00 as of the date of such assignment), and (ii) unless an Event of
Default has occurred and is continuing, the Borrower (each such approval not to
be unreasonably withheld or delayed); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include the Borrower, any Subsidiary
Guarantor or any of the Borrower’s or any Subsidiary Guarantor’s Affiliates or
Subsidiaries.

 

“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, (i) the
Comprehensive Environmental Response, Compensation and Liability Act, as
amended, 42 USCA §9601 et seq.; (ii) the Resource Conservation and Recovery Act
of 1976, as amended, 42 USCA §6901 et seq.; (iii) the Toxic Substance Control
Act, as amended, 15 USCA

 

9

 

§2601 et seq.; (iv) the Water Pollution Control Act, as amended, 33
USCA §1251 et seq.; (v) the Clean Air Act, as amended, 42 USCA §7401 et seq.;
(vi) the Hazardous Material Transportation Act, as amended, 49 USCA §1801 et
seq. and (viii) all rules, regulations, judgments, decrees, injunctions and
restrictions thereunder and any analogous state law.

 

“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:

 

(i)                                     Hazardous
Substances are (A) generated or manufactured on, transported to or from,
treated at, stored at or discharged from such Real Property in violation of any
Environmental Laws; (B) discharged into subsurface waters under such Real
Property in violation of any Environmental Laws; or (C) 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 (A), (B) or (C) has an Adverse Environmental Impact;
or

 

(ii)                                  there
exists with respect to such Real Property (A) 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 (B) 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 (A) or (B) has an
Adverse Environmental Impact.

 

For purposes of this definition, the term “Adverse
Environmental Impact” shall mean any event described in clauses (A), (B) or
(C) of paragraph (i) above or clauses (A) or (B) of paragraph (ii) 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.

 

“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 (i) described in Section 414(b) or (c) of the Code of
which the Borrower is a member, or (ii) 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.

 

10

 

“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.

 

“Excluded Subsidiary”:  (i) any DownREIT Partnership and any
wholly owned Subsidiary of a DownREIT Partnership, (ii) CA New Plan Fixed Rate
Partnership, L.P., a Delaware limited partnership, (iii) any Subsidiary
all of the Real Property of which is encumbered in favor of a Person other than
Borrower or any of its Subsidiaries, (iv) any Consolidated Joint Venture
or any Subsidiary, the sole asset of which is an interest as a partner, member
or similar interest in an unconsolidated or Consolidated Joint Venture
(including a FIN 46 Entity), (v) any Subsidiary that does not directly own
any Real Property, or (vi) any Subsidiary which is established as a special
purpose entity to own Real Property or equity interests related thereto in a
bankruptcy remote manner to secure secured Indebtedness permitted by this
Agreement.

 

“Existing Credit Agreement”: that
certain First Amended and Restated Term Loan 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.

 

“Existing Letters of Credit”:  those certain Letters of Credit outstanding
on the Effective Date which were issued by FNB pursuant to the Original Credit
Agreement as more particularly described on Schedule 1 attached
hereto and by this reference incorporated herein.

 

“Facility Fee”:  as defined in Section 3.1.

 

“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.

 

“Financial Statements”:  as defined in Section 4.13.

 

“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.

 

11

 

“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 (i) the net income of such Person for such fiscal
period (computed in accordance with GAAP), excluding (a) gains (or losses)
from debt restructuring and sales of property and (b) charges for
impairment of real estate, (ii) depreciation and amortization, and (iii) 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.

 

“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).

 

“Ground Lease”:  a ground lease in favor of the Borrower, a
wholly owned Subsidiary of Borrower, a DownREIT Partnership or a wholly owned
Subsidiary of a DownREIT Partnership, which has an unexpired term of 30 years
or more (inclusive of any tenant-controlled renewal options) and 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, (i) the First Amended and Restated Guaranty,
substantially in the form of Exhibit H 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 (ii) each additional Guaranty substantially in the form of Exhibit
H 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, (i) 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
and (ii) 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.

 

12

 

“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 and the Swing
Loan 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
or the Swing Loan Lender on its Note or which may be owing to such Lender or
the Swing Loan Lender pursuant to this Agreement under the laws applicable to
such Lender or the Swing Loan Lender and this Agreement.

 

“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 (i)-(iv) 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.

 

“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 (including a Swing Line
Loan), the last Business Day of each March, June, September and
December and the Maturity Date.

 

“Interest Period”:  (a) with respect to any LIBOR Loans
requested by the Borrower, the period commencing on, as the case may be, the
Effective Date, Borrowing 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 Borrowing Request as provided in Section 2.3
or its irrevocable notice of conversion as provided in Section 2.8; and
(b) as to each Competitive Advance, a period of not less than 14 days and
not more than 180 days as selected by the Borrower in its Competitive

 

13

 

Bid Request; 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 as provided in Section 2.3 or 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

 

(e)                                  the
Borrower shall select Interest Periods so as not to have more than ten (10)
different Interest Periods outstanding at any one time with respect to LIBOR
Loans and four (4) different Interest Periods outstanding at any one time with
respect to Competitive Advances.

 

“Investments”:  as defined in Section 8.3.

 

“ISP”:  with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance).

 

“Issuer Documents”:  with respect to any Letter of Credit, the
Letter of Credit application, and any other document, agreement and instrument
entered into by the Issuing Lender and the Borrower (or any Subsidiary) or in
favor of the Issuing Lender and relating to any such Letter of Credit.

 

“Issuing Lender”:  Bank of America in its capacity as (a) the
Lender issuing the Letters of Credit and (b) the owner of a one hundred percent
(100%) participation interest in and to the Existing Letters of Credit, and any
successor issuer of the Letters of Credit 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.

 

“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

 

14

 

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.

 

“Lead Arranger”:  Banc of America Securities LLC and BNY
Capital Markets, Inc., as joint lead arrangers.

 

“Letters of Credit”:  irrevocable standby letters of credit in
respect of obligations of the Borrower incurred pursuant to contracts made or
performances undertaken or to be undertaken in the ordinary course of the
Borrower’s business which are payable upon presentation of a sight draft and
other documents described in such Letters of Credit, if any, as originally
issued pursuant to this Agreement or the Original Credit Agreement (which shall
include the Existing Letters of Credit) or as amended, modified, extended,
renewed or supplemented.

 

“Letter of Credit Exposure”:  at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus
(b) the aggregate amount of all unreimbursed drawings under Letters of Credit
at such time.

 

“Letter of Credit Request”:  See Section 2.5(a).

 

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

 

(a)                                  the
rate per annum equal to the rate determined by the Administrative Agent to be
the offered rate that appears on the page of the Telerate screen (or any
successor thereto) 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

 

(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’s (or, in the case
of a Competitive Advance Loan, the applicable Lender with respect to such
Competitive

 

15

 

Advance) and with a term equivalent to such Interest Period would be
offered by Administrative Agent’s (or such Competitive Advance Lender’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.

 

“LIBOR Lending Office”:  initially, the office of each Lender
designated as such in Exhibit C 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 loan or the aggregate loans
(including a Revolving Credit Loan (or Loans), a Swing Loan (or Loans) and a
Competitive Advance (or Advances)), as the case may be, to be made by the
Lenders hereunder.  All Loans shall be
made in Dollars.  Amounts drawn under a
Letter of Credit shall also be considered Loans as provided in Section 2.5.

 

“Loan Documents”:  collectively, this Agreement, the Guaranty
(and each Guaranty subsequently delivered pursuant to Section 7.11), the
Notes 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 or otherwise relating to the
Loans to which Administrative Agent and/or the Lenders are a party or an
intended beneficiary.

 

“Managing Agent”:  SunTrust Bank, as managing agent.

 

“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 Adverse Effect”:  a material adverse effect on (i) the
financial condition, operations, business, or Properties of (A) the Borrower or
(B) the Borrower and its Subsidiaries taken as a whole, (ii) the ability of the
Borrower to perform any of its material obligations under the Loan Documents or
the ability of the Subsidiary Guarantors, taken as a whole, to perform their
material obligations under the Guaranty or (iii) the ability of the
Administrative Agent and the Lenders to enforce the Loan Documents.

 

“Maturity Date”:  the earlier of (i) June 29, 2007
(as such date may be extended as provided in Section 2.18), or
(ii) the date on which the Notes shall become due and payable, whether by
acceleration or otherwise.

 

16

 

“Maximum Competitive Advance”:  means, with respect to any Competitive Bid
made by a Lender, the amount set forth therein as the maximum Competitive
Advance which that Lender is willing to make in response to the related
Competitive Bid Request.

 

“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 or Operating Properties during such
period, the sum of (a) net income for such period, determined in accordance
with GAAP, attributable to Unencumbered Assets or Operating Properties, as
applicable, 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 amount (but not less than zero) equal to the
excess (if any) of (i) 3% of operating income for such period, over
(ii) management fees payable in respect of such Unencumbered Assets or
Operating Properties, as applicable, during such period.  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)
(i) which is new ground-up construction (but not including an expansion of
an existing Property), and (ii) for which a certificate of occupancy,
whether temporary or permanent, or the functional equivalent thereof, has not
been issued with respect to such construction or expansion (if required by law
to occupy the same).  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 such time as (A) the same is an income-producing
Property in operating condition, and (B) 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.

 

“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 (i) are based on fraud, intentional
misrepresentation, misapplication of funds, gross negligence or willful
misconduct, (ii) result from intentional mismanagement of or waste at the Real
Property securing such Non-Recourse

 

17

 

Indebtedness, (iii) arise from the presence of Hazardous Substances on
the Real Property securing such Non-Recourse Indebtedness; or (iv) 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”:  collectively, the Revolving Credit Notes,
the Swing Loan Note and the Competitive Advance Notes.

 

“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 (i) is
an income-producing property in operating condition and in respect of which no
material part thereof has been (a) damaged by fire or other casualty (unless
such damage has been repaired) or (b) condemned (unless such condemnation has
been restored), (ii) is a retail shopping center (including single tenant
retail properties), and (iii) 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
Properties” means all such Operating Properties, collectively.  An Operating Property shall not include any
Redevelopment Asset or any New Construction Asset.

 

“Operating Property Value”:  as of any date the quotient of (i) 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 (ii) 9.0%. For purposes of any determination of
Operating Property Value, the following limitations and methodology shall
apply:  (A) 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; (B) 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 (C) in the event
that the Borrower or a Subsidiary of the Borrower shall not have owned an
Operating Property for the entire previous four fiscal quarters, then for the
purposes of determining the Operating Property Value with respect to such
Operating Property, the Adjusted Net Operating Income for such Operating
Property shall be annualized in a manner reasonably satisfactory to the
Administrative Agent,

 

18

 

provided, however, that 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.

 

“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.

 

“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.

 

“Pricing Level”:  one of the following four pricing levels, as
applicable, provided that if the ratings by S&P and Moody’s in any such
Pricing Level are split by one equivalent rating level, the operative rating
would be deemed to be the higher of the two ratings, and if the ratings by
S&P and Moody’s in any such Pricing Level are split by more than one
equivalent rating level, the operative rating would be deemed to be one rating
level higher than the lower of the two ratings, and provided, further, that
during any period that the Borrower has no Senior Debt Rating, Pricing Level IV
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 BBB+ by
S&P or Baa1 by Moody’s;

 

“Pricing Level II”:  the Pricing Level which would be applicable
for so long as the Senior Debt Rating is equal to BBB by S&P or Baa2 by
Moody’s and Pricing Level I is not applicable;

 

“Pricing Level III”:  the Pricing Level which would be applicable
for so long as the Senior Debt Rating is equal to BBB- by S&P or Baa3 by
Moody’s and Pricing Levels I and II are not applicable; and

 

19

 

“Pricing Level IV”:  the Pricing Level which would be applicable
for so long as the Senior Debt Rating is less than BBB- by S&P or Baa3 by
Moody’s and Pricing Levels I, II and III are not applicable.

 

“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.

 

“Proposed Bid Rate”: as applied to any
Remaining Interest Period with respect to a Lender’s Competitive Advance, or
the interest rate applicable to a Swing Loan, the rate per annum that such
Lender or Swing Loan Lender in good faith would have quoted to the Borrower had
the Borrower requested that such Lender or Swing Loan Lender offer to make a
Competitive Advance or Swing Loan on the first day of such Remaining Interest
Period, assuming no Default or Event of Default existed on such day and that
the Borrower had the right to borrow hereunder on such day; each such rate to
be determined by such Lender or Swing Loan Lender, as the case may be, in good
faith in its sole discretion.

 

“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.

 

“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)
(i) which is not a New Construction Asset, (ii) which is undergoing
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), and (iii) for which a certificate of occupancy,
whether temporary or permanent, or the functional equivalent thereof, has not
been issued with respect to such construction or expansion (if required by law
to occupy the same).  Notwithstanding
the foregoing, any such expansion which shall have been a Redevelopment Asset
under the criteria of this definition shall no longer be a Redevelopment Asset
upon such time as (A) the same is an income-producing Property in operating
condition, and (B) at least 60% of the Net Rentable Area (determined on an
“as completed” basis) of such expansion is initially leased to tenants who have
taken possession thereof.  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.

 

“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.

 

20

 

“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”:  (i) 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 a Swing 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 pursuant to Sections 2.1A, 2.3 or 2.8 or
accepted one or more Competitive Advances under Section 2.4 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, Swing
Loan or Competitive Advance; or (ii) in the event that a LIBOR Loan, Swing Loan
or Competitive Advance 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
(iii) in the event that the Borrower shall prepay or repay all or any part of
the principal amount of a LIBOR Loan, Swing Loan or Competitive Advance
(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 (i) the Real Property owned by the Borrower or its Subsidiaries and
stating whether such items of Real Property are Unencumbered Assets at such
time, (ii) the annual base rent payable under each lease of Real Property owned
by the Borrower or any of its Subsidiaries, (iii) the commencement and
termination dates of the term of each such lease, (iv) any renewal options with
respect to such lease, (v) the Net Rentable Area of the space demised under
each such lease and (vi) such other information as the Administrative Agent may
reasonably require.

 

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

 

“Required Lenders”:  the Lenders whose aggregate Commitment
Percentage equals or exceeds fifty-one percent (51%), notwithstanding any
termination of the Total Commitment (in which case the Commitment Percentage
immediately preceding such termination shall be utilized), 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.

 

“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,

 

21

 

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.

 

“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.

 

“Revolving Credit Loan” and “Revolving
Credit Loans”:  as defined in
Section 2.1.

 

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

 

“Senior Debt Rating”:  the senior unsecured non-credit-enhanced
debt rating of the Borrower as determined by S&P and/or Moody’s from time
to time.

 

“Special Counsel”:  McKenna Long & Aldridge LLP, 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.

 

“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).

 

“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.

 

“Supermajority Lenders”: the Lender or
Lenders whose aggregate Commitment Percentage exceeds sixty-six and two-thirds
percent (66.67%), notwithstanding any termination of the Total Commitment (in
which case the Commitment Percentage immediately preceding such termination

 

22

 

shall be utilized), 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
Supermajority Lenders.

 

“Swing Loans”:  as defined in Section 2.1A.

 

“Swing Loan Lender”:  Bank of America, in its capacity as Swing
Loan Lender.

 

“Swing Loan Commitment”:  the sum of $10,000,000.00, as the same may
be changed from time to time in accordance with the terms of this Agreement.

 

“Swing Loan Note”:  as defined in Section 2.1A.

 

“Syndication Agent”:  The Bank of New York, as syndication agent.

 

“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 (i) 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 (ii) 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).

 

“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 (i) is
wholly owned in fee simple by the Borrower or a DownREIT Partnership or a
direct or indirect wholly owned Subsidiary of the Borrower or a DownREIT
Partnership (or is the subject of a Ground Lease), (ii) 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 (i), (ii),
(iii), (iv), (v) (vi), (viii) and (ix) of Section 8.1), (iii) 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 (a) any requirement in a
Ground Lease that such Ground Lease be assumed upon the assignment thereof and
(b) 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

 

23

 

Property or Ground Lease either (x) 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 (y) 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), (iv) 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, (v) is not an
Environmental Risk Property; (vi) 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 (vii) 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 Assets Coverage Ratio”:  on any date of determination the ratio of
(i) the sum of all Adjusted Net Operating Income for all Unencumbered Assets of
the Borrower and its Subsidiaries determined on a Consolidated basis in
accordance with GAAP, plus (without duplication) the Borrower’s Interest in all
Adjusted Net Operating Income for all Unencumbered Assets owned by any DownREIT
Partnerships and by wholly owned Subsidiaries of any DownREIT Partnerships, in
each case, for the period of four (4) fiscal quarters just ended prior to the
date of determination, to (ii) the portion of the Consolidated Interest Expense
(which excludes interest on unsecured Indebtedness of Joint Ventures (including
FIN 46 Entities) that are not Subsidiaries) consisting of interest on all
unsecured Indebtedness of the Borrower and its Subsidiaries for such period.

 

“Unencumbered Asset Value”:  as of any date 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) 9.0%. 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) 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 (C) in the event that the
Borrower or a Subsidiary of the Borrower shall not have owned an Unencumbered
Asset for the entire previous four fiscal 

 

24

 

quarters, then for the purposes of determining the Unencumbered Asset
Value with respect to such Unencumbered Asset, the Adjusted Net Operating
Income for such Unencumbered Asset shall be annualized in a manner reasonably
satisfactory to the Administrative Agent, provided, however, that 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.

 

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 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

 

25

 

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                                 Letter of Credit Amounts.  Unless otherwise specified, all references
herein to the amount of a Letter of Credit at any time shall be deemed to mean
the maximum face amount of such Letter of Credit after giving effect to all
increases thereof contemplated by such Letter of Credit or the Issuer Documents
related thereto, whether or not such maximum face amount is in effect at such
time.

 

2.                                       AMOUNT AND TERMS OF LOANS.

 

2.1                                 Revolving Credit Loans.  Subject to the terms and conditions hereof,
each Lender severally agrees to make revolving credit loans (each a “Revolving
Credit Loan” and, as the context may require, collectively with all
Revolving Credit Loans of such Lender and with the Revolving Credit Loans of
all other Lenders, the “Revolving Credit Loans”) to the Borrower from
time to time between the Effective Date and the Maturity Date, in an aggregate
principal amount, together with such Lender’s share of the Letter of Credit
Exposure and Swing Loans outstanding at such time, not to exceed at any time
(exclusive of any Competitive Advances of such Lender at such time) such
Lender’s Commitment Amount for the purposes set forth in
Section 2.15.  The Revolving Credit
Loans shall be made pro rata in accordance with each Lender’s Commitment Percentage.  The acceptance by Borrower of the Revolving
Credit Loans hereunder shall constitute a representation and warranty that all
of the conditions set forth in Sections 5 (with respect to Revolving Credit
Loans made on the Effective Date) and 6 (with respect to all other Revolving
Credit Loans) have been satisfied.  At
no time shall the aggregate outstanding principal amount of the Revolving
Credit Loans of all Lenders (including the amount of Competitive Advances) plus
the Letter of Credit Exposure plus the aggregate principal amount of all Swing
Loans exceed the Total Commitment Amount. 
Between the Effective Date and the Maturity Date, the Borrower may
borrow, prepay in whole or in part and reborrow under the Commitments at any
time and from time to time, all in

 

26

 

accordance with the terms and conditions of this Agreement.  Subject to the provisions of Sections 2.3,
2.4 and 2.8, Revolving Credit Loans may be (a) Prime Rate Loans, (b) LIBOR
Loans, (c) Competitive Advances or (d) any combination thereof.

 

2.1A                       Swing Loan Commitment.

 

(a)                                  Subject
to the terms and conditions set forth in this Agreement, Swing Loan Lender
agrees to lend to the Borrower, and the Borrower may borrow (and repay and
reborrow) from time to time between the Effective Date and the Maturity Date
upon notice by the Borrower to the Swing Loan Lender given in accordance with
this Section 2.1A, such sums as are requested by the Borrower for the
purposes set forth in Section 2.15 in an aggregate principal amount at any
one time outstanding not exceeding the Swing Loan Commitment (the “Swing
Loans”); provided that  (i) after giving effect to any such Swing
Loan, the aggregate principal balance of any Lender’s Commitment Percentage of
all outstanding Loans (after giving effect to the Letter of Credit Exposure) plus
such Lender’s Commitment Percentage of all Swing Loans, shall not exceed such
Lender’s Commitment;  (ii) in all events no Default or Event of
Default shall have occurred and be continuing; (iii) the aggregate principal
amount outstanding under the Notes (after giving effect to all amounts
requested thereunder) plus the Letter of Credit Exposure shall not at
any time exceed the Total Commitment Amount; (iv) no Swing Loan shall be used
to repay a Swing Loan; and (v) no Lender shall be in default of its obligations
under this Agreement.  Swing Loans shall
constitute “Loans” for all purposes hereunder, but shall not be considered the
utilization of a Lender’s Commitment. 
The funding of a Swing Loan hereunder shall constitute a representation
and warranty by the Borrower that all of the conditions set forth in Sections 5
(with respect to any Swing Loans made on the Effective Date) and Section 6
(with respect to all other Swing Loans) have been satisfied on the date of such
funding.

 

(b)                                 The
Swing Loans shall be evidenced by a separate promissory note of the Borrower in
substantially the form of Exhibit J hereto (the “Swing Loan Note”),
dated the date of this Agreement and completed with appropriate
insertions.  The Swing Loan Note shall
be payable to the order of the Swing Loan Lender in such amount as may be
outstanding from time to time thereunder and shall be payable as set forth
below.  The Borrower irrevocably
authorizes the Swing Loan Lender to make or cause to be made, at or about the
time of the Borrowing Date of any Swing Loan or at the time of receipt of any
payment of principal thereof, an appropriate notation on the Swing Loan
Lender’s record reflecting the making of such Swing Loan or (as the case may
be) the receipt of such payment.  The
outstanding amount of the Swing Loans set forth on the Swing Loan Lender’s
record shall be prima  facie evidence of the principal amount
thereof owing and unpaid to the Swing Loan Lender, but the failure to record,
or any error in so recording, any such amount on the Swing Loan Lender’s record
shall not limit or otherwise affect the obligations of the Borrower hereunder
or under the Swing Loan Note to make payments of principal of or interest on any
Swing Loan Note when due.

 

(c)                                  Each
borrowing of a Swing Loan shall be subject to the limits and restrictions for
Prime Rate Loans and LIBOR Loans set forth in this Agreement.  Borrower shall request a Swing Loan by
delivering to the Swing Loan Lender a Borrowing Request (or a telephonic
request confirmed promptly by hand delivery or telecopy to the Swing Loan
Lender of a written Borrowing Request signed by Borrower) no later than 12:00
p.m. (i) on the requested Borrowing Date with respect to a Prime Rate
Loan, and (ii)  three (3) Business Days prior to the requested Borrowing
Date, with respect to a LIBOR Loan, specifying the amount of the requested
Swing Loan.  The

 

27

 

Borrowing Request shall also contain the statements and certifications
required by Section 2.3(b)(i)-(v) (provided, however, the minimum amount
for such requested Swing Loan shall be $100,000.00).  Each such Borrowing Request shall be irrevocable and binding on
the Borrower and shall obligate the Borrower to accept such Swing Loan on the
Borrowing Date.  Notwithstanding
anything herein to the contrary, a Swing Loan shall either be a Prime Rate Loan
or, if the Borrower has requested a LIBOR Loan (of any interest period) in
the  Borrowing Request delivered in
connection with such Swing Loan, a LIBOR Loan having an Interest Period of
seven (7) days (regardless of the Interest Period so requested), and in the
event that the Borrower fails to specify whether it has selected a Prime Rate
Loan or a LIBOR Loan, the Borrower shall be deemed conclusively to have
selected a Prime Rate Loan.  If the
Borrower requests a LIBOR Loan in the Borrowing Request delivered in connection
with such Swing Loan, then upon the date that the Lenders shall be required to
fund the Loans pursuant to Section 2.1A(d) to refund such Swing Loan, the
interest rate shall be reset to correspond to the rate applicable to a LIBOR
Loan with an Interest Period as specified in the Borrowing Request given by the
Borrower to the Administrative Agent in connection with such Swing Loan (such
Interest Period to commence on the date of such funding of Loans by the Lenders
to fund such Swing Loan), or if no Interest Period is so specified, then as a
Prime Rate Loan.  The proceeds of the
Swing Loan will be made available by the Swing Loan Lender to the Borrower at
the office of the Administrative Agent specified in Section 11.2 by
crediting the account of the Borrower at such office with such proceeds.  Each Swing Loan shall be deemed a LIBOR Loan
or Prime Rate Loan, as applicable, for purposes of this Agreement.

 

(d)                                 The
Swing Loan Lender shall within three (3) days after the Borrowing Date with
respect to such Swing Loan request each Lender, including the Swing Loan
Lender, to make a Revolving Credit Loan pursuant to Section 2.1 in an
amount equal to such Lender’s Commitment Percentage of the amount of the Swing
Loan outstanding on the date such notice is given, unless the Borrower has
advised Administrative Agent in the Borrowing Request for such Swing Loan that
Borrower shall repay such Swing Loan in full on the date that is seven (7) days
after the making of such Swing Loan. 
Such request shall be made in writing and in accordance with the
requirements of Section 2.3 without regard to the minimum and multiples
specified therein for the principal amount for Prime Rate Loans and LIBOR
Loans, but subject to the unutilized portion of the Total Commitment Amount and
the conditions set forth in Sections 5 and 6.  Borrower hereby irrevocably authorizes and directs the Swing Loan
Lender to so act on its behalf, and agrees that any amount advanced to the
Administrative Agent for the benefit of the Swing Loan Lender pursuant to this
Section 2.1A(d) shall be considered a Loan pursuant to Section 2.1.  Unless any of the events described in
paragraph (h) or (i) of Section 9.1 shall have occurred (in which event
the procedures of Section 2.1A(e) shall apply), each Lender shall make the
proceeds of its Loan available to the Swing Loan Lender for the account of the
Swing Loan Lender at the office of the Administrative Agent specified in
Section 11.2 prior to 1:00 p.m. in funds immediately available on the date
specified in such request just as if the Lenders were funding directly to the
Borrower, so that thereafter such obligations of Borrower with respect to such
Swing Loan shall be evidenced by the Revolving Credit Notes.  The proceeds of such Loan shall be
immediately applied to repay the Swing Loans. 
Administrative Agent may, at its option, also request that the Lenders
make a Loan as provided herein in the event that the Borrower fails to repay a
Swing Loan on its maturity date after having indicated that it would so repay
such Swing Loan.  Until such Loans
pursuant to Section 2.1 are made pursuant to this paragraph, interest
shall accrue under the Swing Loan only.

 

28

 

(e)                                  If
(a) prior to the making of a Loan pursuant to Section 2.1A(d) by all
of the Lenders, one of the events described in Section 9.1(h) or (i) shall
have occurred, or (b) for any reason any Swing Loan cannot be refinanced
by a Revolving Credit Loan in accordance with Section 2.1A(d), each Lender
will, on the date such Loan pursuant to Section 2.1A(d) was to have been
made, purchase an undivided participating interest in the Swing Loan in an
amount equal to its Commitment Percentage of such Swing Loan.  Each Lender will, on the date such Loan
pursuant to Section 2.1A(d) was to have been made, transfer to the Swing
Loan Lender in immediately available funds the amount of its participation and
upon receipt thereof the Swing Loan Lender will deliver to such Lender a Swing
Loan participation certificate dated the date of receipt of such funds and in
such amount.

 

(f)                                    Whenever
at any time after the Swing Loan Lender has received from any Lender such
Lender’s participating interest in a Swing Loan, the Swing Loan Lender receives
any payment on account thereof, the Swing Loan Lender will promptly distribute
to such Lender its participating interest in such amount (appropriately
adjusted in the case of interest payments to reflect the period of time during
which such Lender’s participating interest was outstanding and funded); provided,
however, that in the event that such payment received by the Swing Loan Lender
is required to be returned, such Lender will return to the Swing Loan Lender
any portion thereof previously distributed by the Swing Loan Lender to it.

 

(g)                                 Each
Lender’s obligation to fund a Loan as provided in Section 2.1A(d) or to
purchase participating interests pursuant to Section 2.1A(e) shall be
absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any setoff, counterclaim, recoupment,
defense or other right which such Lender or the Borrower or any Subsidiary
Guarantor may have against the Swing Loan Lender, the Borrower or any
Subsidiary Guarantor or anyone else for any reason whatsoever; (ii) the
occurrence or continuance of a Default or an Event of Default arising after the
relevant Swing Loan was advanced by the Swing Loan Lender; (iii) any adverse
change in the condition (financial or otherwise) of the Borrower or any
Subsidiary Guarantor or any of their respective Subsidiaries; (iv) any breach
of this Agreement or any of the other Loan Documents by the Borrower or any
Subsidiary Guarantor or any Lender; or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.  Any portions of a Swing Loan not so
purchased or converted may be treated by the Swing Loan Lender as a Loan which
was not funded by the non-purchasing Lender as contemplated in
Section 9.1.  Each Swing Loan, once
so sold or converted, shall cease to be a Swing Loan for the purposes of this
Agreement, but shall be a Loan made by each Lender under its Commitment.

 

2.2                                 Notes.

 

(a)                                  Revolving
Credit Notes.  The Loans (other than
the Swing Loans and Competitive Advances) of each Lender shall be evidenced by
a promissory note of the Borrower, substantially in the form of Exhibit K,
with appropriate insertions therein as to date and principal amount (each, as
endorsed or modified from time to time, a “Revolving Credit Note” and,
collectively with the Revolving Credit Notes of all other Lenders, the “Revolving
Credit 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 (a) the original amount of the
Commitment of such Lender and (b) the aggregate unpaid principal balance of all
Revolving Credit Loans of such Lender and such Lender’s share of any payments
made by the Issuing Lender

 

29

 

pursuant to any Letters of Credit and such Lender’s pro rata percentage
of the aggregate principal amount of all Swing Loans based on its Commitment
Percentage, plus interest and other amounts due and owing to the Lenders under
the Loan Documents.  No Lender shall
have any obligation to make Loans to the Borrower of more than the principal
face amount of its Revolving Credit Note.

 

(b)                                 The
Revolving Credit Notes Generally. 
Each Revolving Credit 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 each 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 Original Credit
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 Revolving Credit Loan Borrowings
Other than Competitive Advances.

 

(a)                                  Revolving
Credit Loans.  Except for (i)
Revolving Credit Loans which the Borrower has requested to be made as
Competitive Advances (as to which the provisions of Section 2.4 shall
apply), and (ii) Revolving Credit Loans which the Borrower has requested to be
made as Swing Loans (as to which provisions of Section 2.1A shall apply),
and subject to the limitations set forth in Sections 2.1 and 2.3(c), the
Borrower may borrow under the Commitments on any Business Day between the
Effective Date and the Maturity Date by providing notice thereof in accordance
with Section 2.3(b).

 

(b)                                 Borrowing
Requests.  To request Revolving
Credit Loans pursuant to Section 2.3(a), the Borrower shall notify the
Administrative Agent of such request by telephone (a) in the case of a LIBOR
Loan, not later than 12:00 noon three (3) Business Days before the date of the
proposed borrowing of Revolving Credit Loans or (b) in the case of a Prime Rate
Loan, not later than 12:00 noon one (1) Business Day before the date of such
proposed advance.  Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Borrowing Request
signed by the Borrower.  Each such
telephonic and written Borrowing Request shall specify the following
information: (i) the aggregate amount of the requested borrowing of Revolving
Credit Loans; (ii) the date of such borrowing of Revolving Credit Loans,
which shall be a Business Day; (iii) whether the requested Revolving
Credit Loan is to be a Prime Rate Loan or a LIBOR Loan; (iv) in the case of a
LIBOR Loan, the initial Interest Period to be applicable thereto, which shall
be a period contemplated by the definition of the term “Interest Period”; and
(v) the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.3(d).

 

30

 

(c)                                  Limits
on Advances.  Each borrowing of (i)
Prime Rate Loans shall be in a minimum aggregate principal amount equal to
$1,000,000 or such amount plus a whole multiple of $100,000 in excess thereof,
or, if less, the Available Commitment Amount, and (ii) LIBOR Loans shall
be in an aggregate principal amount equal to $5,000,000 or such amount plus a
whole multiple of $100,000 in excess thereof, or, if less, the Available
Commitment Amount.

 

(d)                                 Funding
of Revolving Credit Loans.  Upon
receipt of each Borrowing Request from the Borrower, the Administrative Agent
shall promptly notify each Lender of the contents thereof.  Subject to its receipt of the notice
referred to in the preceding sentence, each Lender will make the amount of its
Commitment Percentage of each borrowing of Revolving Credit Loans pursuant to
this Section 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 11:00 a.m. on the relevant Borrowing Date
requested by the Borrower 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, provided that Revolving Credit Loans made to finance the
reimbursement of a payment made by the Issuing Lender pursuant to a Letter of
Credit as provided in Section 2.5 shall be remitted by the Administrative
Agent to the Issuing Lender.

 

(e)                                  Effect
of Incomplete Borrowing Request.  If
no election is made as to the whether the Revolving Credit Loans shall be Prime
Rate Loans or LIBOR Loans, then the requested Revolving Credit Loans shall be
Prime Rate Loans.  If no Interest Period
is specified with respect to any requested borrowing of LIBOR Loans, then the
Borrower shall be deemed to have selected an Interest Period of one month’s
duration.

 

(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 (including, without limitation,
Revolving Credit Loans, Swing Loans and Competitive Advances), 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 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 

 

31

 

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.

 

(g)                                 Voluntary
Reduction or Termination of Commitments.

 

(i)                                     The
Borrower shall have the right, upon at least three Business Days’ prior written
notice to the Administrative Agent, at any time to terminate the Commitments or
from time to time to permanently reduce the Commitments, provided that
(i) the Total Commitment Amount shall not be reduced below an amount equal
to the sum of the aggregate principal balance of the Loans plus the
Letter of Credit Exposure plus the aggregate principal amount of all
Swing Loans (in each case after giving effect to any contemporaneous prepayment
of the Loans) then outstanding thereunder, and (ii) any such reduction of
the Commitments shall be in the minimum amount of $5,000,000 or such amount
plus a whole multiple of $100,000 in excess thereof.  In the event that the Total Commitment Amount is reduced below
the Swing Loan Commitment, the Swing Loan Commitment shall be reduced to an
amount equal to the Total Commitment Amount, as reduced.  Upon receipt of each such notice of termination
or permanent reduction of Commitments from the Borrower, the Administrative
Agent shall promptly notify each Lender of the contents thereof.

 

(ii)                                  Reductions
of the Commitments shall be applied pro rata according to the Commitments of
each Lender, as the case may be. 
Simultaneously with each reduction or termination of the Commitments
under this Section, the Borrower shall prepay the Loans outstanding thereunder
by the amount, if any, by which the aggregate unpaid principal balance of such
Loans plus the Letter of Credit Exposure exceeds the amount of the
Commitments, as so reduced. 
Simultaneously with a termination of the Commitments under this Section,
the Borrower shall pay the Facility Fee accrued (but not yet paid).  If any prepayment is made under this
Section with respect to any LIBOR Loans, 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.  No reduction or termination of the Commitments may be reinstated.

 

2.4                                 Competitive Advances.

 

(a)                                  Subject
to the terms and conditions hereof, at any time and from time to time from the
Effective Date through the Maturity Date, and provided that no Default or Event
of Default shall have occurred and be continuing, each Lender may in its sole
and absolute discretion make Competitive Advances to Borrower in such principal
amounts as Borrower may request pursuant to a Competitive Bid Request that do
not result in (i) the aggregate principal amount outstanding under the
Competitive Advance Notes (after giving effect to all amounts requested
thereunder) being in excess of the lesser  of (A) $150,000,000 or
(B) an amount equal to 42.86% of the Total Commitment Amount, and (ii) the
aggregate principal amount outstanding under the Notes (after giving effect to
all amounts requested thereunder) plus the Letter of Credit Exposure
being in excess of the Total Commitment Amount.  A Lender lending to the Borrower pursuant to this Section 2.4
shall remain obligated to make Loans in accordance with its Commitment
Percentage as provided in Section 2.1.

 

32

 

(b)                                 Borrower
shall request Competitive Advances by submitting a duly completed Competitive
Bid Request to the Administrative Agent, which Competitive Bid Request shall
specify the relevant date, amount and maturity for the proposed Competitive
Advance and shall state whether a Competitive Bid is requested on the basis of
a fixed rate of interest expressed in multiples of 1/100th of one
basis point (a “Absolute Rate Bid”) or on the basis of a margin over LIBOR (a
“LIBOR Margin Bid”).  If a LIBOR Margin
Bid is requested, the maturity date shall be one of the Interest Periods, and
any such advance shall be a LIBOR Loan. 
The proposed funding date shall be a Business Day.  The Administrative Agent shall incur no
liability whatsoever hereunder in acting upon any Competitive Bid Request
purportedly made by an Authorized Signatory of Borrower, which hereby agrees to
indemnify the Administrative Agent from any loss, cost, expense or liability as
a result of so acting.  The Competitive
Bid Request must be received by the Administrative Agent not later than 12:00
noon on a Business Day that is at least five (5) Business Days prior to the
date of the proposed Competitive Advance.

 

(c)                                  Unless
the Administrative Agent otherwise agrees, in its sole and absolute discretion,
no Competitive Bid Request shall be made by Borrower if Borrower has within the
current calendar month submitted five (5) or more Competitive Bid Requests.

 

(d)                                 Each
Competitive Bid Request must be made for a Competitive Advance of at least
$5,000,000 and shall be in an integral multiple of $1,000,000.

 

(e)                                  No
Competitive Bid Request shall be made for a Competitive Advance with a maturity
of less than 7 days or more than 180 days, or with a maturity date
subsequent to the Maturity Date.  The
Borrower may request offers to make Competitive Advances for up to four (4)
Interest Periods in a single Competitive Bid Request, provided that in no event
shall Borrower be permitted to have more than four (4) different Interest
Periods outstanding at any one time with respect to all Competitive Advances.

 

(f)                                    Upon
receipt of each Competitive Bid Request from the Borrower, the Administrative
Agent shall promptly notify each Lender of the contents thereof.  Any Lender may, by written notice to the
Administrative Agent, advise the Administrative Agent that it elects not to be
so notified of Competitive Bid Requests, in which case the Administrative Agent
shall not notify such Lender of the Competitive Bid Request.

 

(g)                                 Each
Lender receiving a Competitive Bid Request may, in its sole and absolute
discretion, make or not make a Competitive Bid responsive to the Competitive
Bid Request.  Each Competitive Bid shall
be submitted so as to be received by the Administrative Agent not later than
12:00 noon (or, in the case of the Domestic Reference Lender, not later than
11:00 a.m.) on the date which is four (4) Business Days prior to the requested
Competitive Advance.  Any Competitive
Bid received by the Administrative Agent after 12:00 noon (or 11:00 a.m. in the
case of the Domestic Reference Lender) on such date shall be disregarded for
purposes of this Agreement.  The
Administrative Agent shall incur no liability whatsoever hereunder in acting
upon any Competitive Bid purportedly made by a Responsible Official of a
Lender, each of which hereby agrees to indemnify the Administrative Agent from
any loss, cost, expense or liability as a result of so acting with respect to
that Lender.

 

(h)                                 Each
Competitive Bid shall specify the fixed interest rate or the margin over LIBOR,
as applicable, for the offered Maximum Competitive Advance set forth in the
Competitive

 

33

 

Bid.  The Maximum Competitive
Advance offered by a Lender in a Competitive Bid shall not exceed the
Competitive Advance requested and may be less than the Competitive Advance
requested by Borrower in the Competitive Bid Request, but shall be an integral
multiple of $1,000,000.  Any Competitive
Bid which offers an interest rate other  than a fixed interest
rate or a margin over LIBOR, is in a form other than as set forth in Exhibit
E or which otherwise contains any term, condition, qualification or
provision not contained in the Competitive Bid Request (including without
limitation a requirement of a minimum advance) or is received after the time
set forth in Section 2.4(g) shall be disregarded for purposes of
this Agreement.  A Competitive Bid once
submitted to the Administrative Agent shall, subject to the terms of Sections
2.12 and Section 6, be irrevocable until 12:00 noon on the date which is
three (3) Business Days prior to the requested Competitive Advance set forth in
the related Competitive Bid Request, and shall expire by its terms at such time
unless accepted by Borrower on or prior thereto.

 

(i)                                     Promptly
after 12:00 noon (a) on the date which is four (4) Business Days prior to
the date of the proposed Competitive Advance, the Administrative Agent shall
notify Borrower of the names of the Lenders providing Competitive Bids to the
Administrative Agent at or before 12:00 noon on that date (or 11:00 a.m. in the
case of the Domestic Reference Lender) and satisfying the conditions of this
Section 2.4 and the Maximum Competitive Advance and fixed interest
rate or margin over LIBOR set forth by each such Lender in its Competitive Bid.

 

(j)                                     Borrower
may, in its sole and absolute discretion, reject any or all of the Competitive
Bids.  If Borrower accepts any
Competitive Bid, by telephone or in writing (provided that any acceptance by
telephone shall be confirmed promptly by hand delivery or telecopy of such
acceptance signed by Borrower), the following shall apply:  (i) Borrower must accept all Absolute
Rate Bids at all lower fixed interest rates before accepting any portion of a
Absolute Rate Bid at a higher fixed interest rate, (ii) Borrower must
accept all LIBOR Margin Bids at all lower margins over LIBOR before accepting
any portion of a LIBOR Margin Bid at a higher margin over LIBOR, (iii) if
two or more Lenders have submitted a Competitive Bid at the same fixed interest
rate or margin, then Borrowers must accept either all of such Competitive Bids
or accept such Competitive Bids in the same proportion as the Maximum
Competitive Advance of each Lender bears to the aggregate Maximum Competitive
Advances of all such Lenders, (iv) Borrower may not accept Competitive
Bids for an aggregate amount in excess of the requested Competitive Advance set
forth in the Competitive Bid Request, and (v) the principal amount of the
Competitive Bids accepted must be at least $5,000,000 and shall be in an
integral multiple of $1,000,000. 
Acceptance by Borrower of a LIBOR Margin Bid or Absolute Rate Bid must
be made prior to 12:00 noon on the date which is three (3) Business Days prior
to the requested Competitive Advance. 
Acceptance of a Competitive Bid by Borrower shall be accomplished by
telephonic or written notification thereof to the Administrative Agent
(provided that any acceptance by telephone shall be confirmed promptly by hand
delivery or telecopy of such acceptance signed by Borrower) and shall be
irrevocable upon such notification.  The
Administrative Agent shall promptly notify each of the Lenders whose
Competitive Bid has been accepted by Borrower by telephone, which notification
shall promptly be confirmed in writing delivered in person or by telecopier to
such Lenders.  Any Competitive Bid not
accepted or rejected by Borrower by 12:00 noon on the date which is three (3)
Business Days prior to the proposed Competitive Advance, shall be deemed rejected.

 

(k)                                  In
the case of a LIBOR Margin Bid, the Administrative Agent shall determine LIBOR
for the relevant Interest Period on the date which is three (3) Business Days
prior

 

34

 

to the date of the proposed Competitive Advance, and shall promptly
thereafter notify Borrower and the Lenders whose LIBOR Margin Bids were
accepted by Borrower of such LIBOR rate.

 

(l)                                     A
Lender whose Competitive Bid has been accepted by Borrower shall make the
Competitive Advance in accordance with the Competitive Bid Request and with its
Competitive Bid, subject to the applicable conditions set forth in this
Agreement, by making funds immediately available to the Administrative Agent at
the office of the Administrative Agent set forth in Section 11.2 in the
amount of such Competitive Advance not later than 1:00 p.m. on the date set
forth in the Competitive Bid Request. 
The Administrative Agent shall then promptly make available to the
Borrower the aggregate amount of the Competitive Advances made available to the
Administrative Agent by crediting such amount in immediately available funds to
the account of the Borrower on the books of such office of Administrative
Agent.

 

(m)                               The
Administrative Agent shall notify Borrower and the Lenders promptly after any
Competitive Advance is made of the amounts and maturity of such Competitive
Advances and the identity of the Lenders making such Competitive Advances.

 

(n)                                 The
Competitive Advances made by a Lender shall be evidenced by that Lender’s
Competitive Advance Note.

 

(o)                                 Each
Competitive Advance shall be subject to all of the provisions of this Agreement
generally, provided, however, that a Competitive Advance shall not reduce a
Lender’s obligation to fund its Commitment Percentage of any Loan.  No Competitive Advance may be prepaid
without the prior written consent of the affected Lender.

 

2.5                                 Letters of Credit.

 

(a)                                  Subject
to the terms and conditions set forth in this Agreement, at any time and from
time to time from the Effective Date through the day that is seven (7) days prior
to the Maturity Date, the Issuing Lender shall issue such Letters of Credit as
the Borrower may request upon the delivery of a written request in the form of Exhibit
L hereto (a “Letter of Credit Request”) to the Issuing Lender, provided
that (i) no Default or Event of Default shall have occurred and be continuing,
(ii) upon issuance of such Letter of Credit, the outstanding Letters of Credit
(including Letters of Credit accepted but unpaid) shall not exceed Thirty-Five
Million and No/100 Dollars ($35,000,000.00), (iii) in no event shall the amount
of the Loans outstanding and the amount of Letters of Credit outstanding (after
giving effect to the Letter of Credit Exposure) exceed the Total Commitment
Amount, (iv) the conditions set forth in Sections 5 and 6 shall have been
satisfied, and (v) in no event shall any amount drawn under a Letter of Credit
be available for reinstatement or a subsequent drawing under such Letter of
Credit.  Each Letter of Credit Request
shall be executed by an Authorized Signatory of the Borrower.  The Issuing Lender shall not be required to
issue any Letter of Credit if any Lender is at such time a Defaulting Lender
hereunder, unless the Issuing Lender has entered into satisfactory arrangements
with the Borrower or such Defaulting Lender to eliminate the Issuing Lender’s
risk with respect to such Defaulting Lender. 
The Issuing Lender shall be entitled to conclusively rely on such
Person’s authority to request a Letter of Credit on behalf of such
Borrower.  The Issuing Lender shall have
no duty to verify the authenticity of any signature appearing on a Letter of
Credit Request.  The Borrower assumes
all risks with respect to the use of the Letters of Credit.  Unless the Issuing Lender and the Required
Lenders otherwise consent, the term of any Letter of Credit (other than any
extension of the original term of any Letter

 

35

 

of Credit pursuant to Section 2.5(d)) shall not exceed a period of
time commencing on the issuance of the Letter of Credit and ending on the date
which is seven (7) days prior to the Maturity Date (but in any event the term
shall not extend beyond the Maturity Date). 
The amount available to be drawn under any Letter of Credit shall reduce
on a dollar for dollar basis the amount available to be drawn under the Total
Commitment Amount as a Loan.  All
Existing Letters of Credit shall be deemed to have been issued pursuant hereto
as Letters of Credit, and from and after the Effective Date shall be subject to
and governed by the terms and conditions hereof.  Notwithstanding anything contained herein to the contrary, the
parties hereto acknowledge and agree that (a) Bank of America, in its capacity
as the Issuing Lender, has purchased from FNB a one hundred percent (100%)
participation interest in and to the Existing Letters of Credit, (b) Bank of
America shall be deemed to be the Issuing Lender with respect to the Existing
Letters of Credit for purposes of this Agreement and the Loan Documents
(provided, however, that Borrower shall not be required to make reimbursement
payments to the Issuing Lender with respect to drawings under the Existing
Letters of Credit (and instead shall make such payments directly to FNB as the
original issuer of the Existing Letters of Credit) except as set forth in item
(c) below, (c) any payments made by Issuing Lender to the beneficiary under any
Existing Letter of Credit or to FNB as a result of a drawing under an Existing
Letter of Credit by the beneficiary thereof, shall constitute a drawing by a
beneficiary under a Letter of Credit for purposes of this Agreement,  and
(d) FNB, as the issuer of the Existing Letters of Credit, shall be considered a
third party beneficiary of this Agreement with respect to Section 2.5(l).

 

(b)                                 Each
Letter of Credit Request shall be submitted to the Issuing Lender no later than
11:00 a.m. at least five (5) Business Days prior to the date upon which the
requested Letter of Credit is to be issued. 
Each such Letter of Credit Request shall contain (i) a statement as to
the purpose for which such Letter of Credit shall be used (which purpose shall
be in accordance with the terms of Section 2.15 of this Agreement), and
(ii) a certification by an Authorized Signatory of the Borrower that the
Borrower is and will be in compliance with all covenants under the Loan
Documents after giving effect to the issuance of such Letter of Credit.  The Borrower shall further deliver to the
Issuing Lender such additional applications and documents as the Issuing Lender
may require, in conformity with the then standard practices of its letter of
credit department, in connection with the issuance of such Letter of Credit;
provided that in the event of any conflict, the terms of this Agreement shall
control.

 

(c)                                  Promptly
after receipt of any Letter of Credit Request, the Issuing Lender will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Request from
the Borrower and, if not, the Issuing Lender will provide the Administrative
Agent with a copy thereof.  Unless the
Issuing Lender has received written notice from any Lender, the Administrative
Agent, the Borrower or any Subsidiary Guarantor, at least one Business Day
prior to the requested date of issuance or amendment of the applicable Letter
of Credit, that one or more applicable conditions contained in Article VI
shall not then be satisfied, then, subject to the terms and conditions set
forth in this Agreement (including without limitation approval by Issuing
Lender of the content of the Letter of Credit Request), the Issuing Lender
shall, on the requested date, issue a Letter of Credit for the account of the
Borrower or enter into the applicable amendment, as the case may be, in each
case in accordance with the Issuing Lender’s usual and customary business
practices.  Each Letter of Credit shall
be in form and substance satisfactory to the Issuing Lender in its sole
discretion.  Upon

 

36

 

issuance of a Letter of Credit, the Issuing Lender shall provide copies
of each Letter of Credit to the Lenders.

 

(d)                                 If
the Borrower so requests in any applicable Letter of Credit Request, the
Issuing Lender shall, subject to the terms and conditions hereof with respect
to the issuance of Letters of Credit, agree to issue a Letter of Credit that
has automatic extension provisions (each, an “Auto-Extension Letter of
Credit”); provided that any such Auto-Extension Letter of Credit must permit
the Issuing Lender to prevent any such extension at least once in each
twelve-month period (commencing with the date of issuance of such Letter of
Credit) by giving at least thirty (30) days’ prior written notice to the
beneficiary thereof (the “Non-Extension Notice Date”) in each such twelve-month
period.  Unless otherwise directed by
the Issuing Lender, the Borrower shall not be required to make a specific
request to the Issuing Lender for any such extension.  Once an Auto-Extension Letter of Credit has been issued, the
Lenders shall be deemed to have authorized (but may not require) the Issuing
Lender to permit the extension of such Letter of Credit, at any time to an
expiry date that may or may not extend beyond the Maturity Date; provided,
however, that the Issuing Lender shall not permit any such extension if (A) the
Issuing Lender has determined that it would not be permitted, or would have no
obligation, at such time to issue such Letter of Credit in its revised form (as
extended) under the terms hereof (by reason of the provisions of
Section 2.05(a) or otherwise), or (B) it has received notice (which may be
by telephone or in writing) on or before the day that is thirty (30) Business
Days before the Non-Extension Notice Date (1) from the Administrative Agent
that the Required Lenders have elected not to permit such extension or (2) from
the Administrative Agent, any Lender or the Borrower that one or more of the
applicable conditions specified in Section 6 is not then satisfied, and in
each such case directing the Issuing Lender not to permit such extension, and
provided further, however, that in the event that the expiry date of such
extended Letter of Credit shall extend beyond the date that is after the
Maturity Date and if as of the date that is seven (7) days prior to the
Maturity Date, any such Letter of Credit may for any reason remain outstanding
and partially or wholly undrawn, the Borrower shall immediately Cash
Collateralize the Letter of Credit Exposure (in an amount equal to such Letter
of Credit Exposure).

 

(e)                                  Upon
the issuance of a Letter of Credit, each Lender shall be deemed to have
purchased a participation therein from Issuing Lender in an amount equal to its
respective Commitment Percentage of the amount of such Letter of Credit,
provided, however, that with respect to the Existing Letters of Credit, on the
Effective Date, each Lender shall be deemed to have purchased a
subparticipation therein from the Issuing Lender in an amount equal to its
respective Commitment Percentage of the amount of the Existing Letters of
Credit.  No Lender’s obligation to
participate or subparticipate, as applicable, in a Letter of Credit shall be
affected by any other Lender’s failure to perform as required herein with
respect to such Letter of Credit or any other Letter of Credit.

 

(f)                                    Upon
the issuance of each Letter of Credit, the Borrower shall pay (i) directly
to the Issuing Lender for its own account, a fee calculated at the rate of
one-eighth of one percent (0.125%) times the daily maximum amount available to
be drawn under such Letter of Credit (which annual fee shall not be less than
$500.00 in any event) (the “Letter of Credit Fronting Fees”), and (ii) the
Administrative Agent for the accounts of the Lenders in accordance with their
respective percentage shares of participation or subparticipation, as
applicable, in such Letter of Credit, a fee equal to the Applicable Margin
times the daily maximum amount available to be drawn

 

37

 

under such Letter of Credit (the “Letter of Credit Commission
Fees”).  The Letter of Credit Fronting
Fees payable under clause (i) above shall be (A) calculated on the basis of a
360-day year and (B) payable (w) quarterly in arrears on the last Business Day
of each March, June, September, and December, (x) upon the expiration or return
of any Letter of Credit, (y) on any termination of the Total Commitment Amount,
and (z) on the Maturity Date.  The
Letter of Credit Commission Fees payable under clause (ii) above shall be (A)
calculated on the basis of a 360-day year and (B) payable (x) quarterly in
arrears on the last Business Day of each March, June, September, and December,
(y) on any termination of the Total Commitment Amount, and (z) on the Maturity
Date.  In addition to and concurrently
with the payment of the Letter of Credit Commission Fees and the Letter of
Credit Fronting Fees, Borrower shall pay directly to, the applicable Issuing
Lender its customary issuance, presentation, amendment, and other processing
fees, and all other standard costs and charges of such Issuing Lender relating
to letters of credit as from time to time in effect (such charges not to exceed
$500.00).

 

(g)                                 In
the event that any amount is drawn under a Letter of Credit by the beneficiary
thereof, the Borrower shall reimburse the Issuing Lender not later than 11:00
a.m. on the date of such payment by the Issuing Lender through the
Administrative Agent in an amount equal to the amount of such drawing.  If the Borrower fails to so reimburse the
Issuing Lender by such time, Borrower shall be deemed to have requested a Prime
Rate Loan on such date in an amount equal to the amount of such drawing and
such amount drawn shall be treated as an outstanding Prime Rate Loan under this
Agreement and the Administrative Agent shall promptly notify each Lender by
telex, telecopy, telegram, telephone (confirmed in writing) or other similar
means of transmission, and each Lender shall promptly and unconditionally pay
to the Administrative Agent, for the Issuing Lender’s own account, an amount equal
to such Lender’s Commitment Percentage of such Letter of Credit (to the extent
of the amount drawn).  If and to the
extent any Lender shall not make such amount available on the Business Day on
which such draw occurs, such Lender agrees to pay such amount to the
Administrative Agent forthwith on demand, together with interest thereon, for
each day from the date on which such draw occurred until the date on which such
amount is paid to the Administrative Agent, at a rate per annum equal to the
greater of the Federal Funds Effective Rate and a rate determined by the
Issuing Lender in accordance with banking industry rules on interbank
compensation.  Further, such Lender
shall be deemed to have assigned any and all payments made of principal and
interest on its Loans, amounts due with respect to its participations  and subparticipations in Letters of Credit
and any other amounts due to it hereunder to the Administrative Agent to fund
the amount of any drawn Letter of Credit which such Lender was required to fund
pursuant to this Section 2.5(g) until such amount has been funded (as a
result of such assignment or otherwise). 
In the event of any such failure or refusal, the Lenders not so failing
or refusing shall be entitled to a priority position for such amounts as
provided in Section 9.1.  The
failure of any Lender to make funds available to the Administrative Agent in
such amount shall not relieve any other Lender of its obligation hereunder to
make funds available to the Administrative Agent pursuant to this
Section 2.5(g).

 

(h)                                 If
after the issuance of a Letter of Credit pursuant to Section 2.5(c) by the
Issuing Lender, but prior to the funding of any portion thereof by a Lender
pursuant to Section 2.5(g), one of the events described in
Section 9.1(h) or (i) shall have occurred, each Lender will, on the date
such Loan pursuant to Section 2.5(g) was to have been made, transfer to
the Issuing Lender in immediately available funds the amount of its
participation or subparticipation, as applicable, based on that Loan that it
was to have made on such date and upon receipt thereof the Issuing

 

38

 

Lender will deliver to such Lender a Letter of Credit participation
certificate or subparticipation certificate, as applicable, dated the date of
receipt of such funds and in such amount.

 

(i)                                     Whenever
at any time after the Issuing Lender has received from any Lender such Lender’s
payment of funds under a Letter of Credit and thereafter the Issuing Lender
receives any payment on account thereof, then the Issuing Lender will
distribute to such Lender its participating interest or subparticipating
interest, as applicable, in such amount (appropriately adjusted in the case of
interest payments to reflect the period of time during which such Lender’s
participating interest or subparticipating interest, as applicable, was
outstanding and funded); provided, however, that in the event
that such payment received by the Issuing Lender is required to be returned,
such Lender will return to the Issuing Lender any portion thereof previously
distributed by the Issuing Lender to it.

 

(j)                                     The
issuance of any supplement, modification, amendment, renewal or extension to or
of any Letter of Credit shall be treated in all respects the same as the
issuance of a new Letter of Credit.

 

(k)                                  The
obligations of the Borrower to the Lenders under this Agreement with respect to
Letters of Credit shall be absolute, unconditional and irrevocable, and shall
be paid and performed strictly in accordance with the terms of this Agreement,
under all circumstances whatsoever, including, without limitation, the
following circumstances:  (i) any
improper use which may be made of any Letter of Credit or any improper acts or
omissions of any beneficiary or transferee of any Letter of Credit in
connection therewith; (ii) the existence of any claim, set-off, defense or any
right which the Borrower may have at any time against any beneficiary or any
transferee of any Letter of Credit (or persons or entities for whom any such
beneficiary or any such transferee may be acting) or the Lenders (other than
the defense of payment to the Lenders in accordance with the terms of this
Agreement) or any other person, whether in connection with any Letter of
Credit, this Agreement, any other Loan Document, or any unrelated transaction;
(iii) any statement or any other documents presented under any Letter of Credit
proving to be insufficient, forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect whatsoever; (iv)
any breach of any agreement between Borrower and any beneficiary or transferee
of any Letter of Credit; (v) any irregularity in the transaction with respect
to which any Letter of Credit is issued, including any fraud by the beneficiary
or any transferee of such Letter of Credit; (vi) payment by the Issuing Lender
under any Letter of Credit against presentation of a sight draft or a
certificate which does not comply with the terms of such Letter of Credit,
provided that such payment shall not have constituted gross negligence or
willful misconduct on the part of the Issuing Lender, and (vii) any other
circumstance or happening whatsoever, whether or not similar to any of the
foregoing, provided that such other circumstances or happenings shall not have
been the result of gross negligence or willful misconduct on the part of the
Issuing Lender.

 

(l)                                     Borrower
assumes all risks of the acts, omissions, or misuse of any Letter of Credit by
the beneficiary thereof.  Neither
Administrative Agent, Issuing Lender nor any Lender will be responsible for (i)
the form, validity, sufficiency, accuracy, genuineness or legal effect of any
Letter of Credit or any document submitted by any party in connection with the
issuance of any Letter of Credit, even if such document should in fact prove to
be in any or all respects invalid, insufficient, inaccurate, fraudulent or
forged; (ii) the form, validity, sufficiency, accuracy, genuineness or legal
effect of any instrument transferring or assigning or purporting to transfer or
assign any Letter of Credit or the rights or benefits thereunder or proceeds
thereof in whole or in 

 

39

 

part, which may prove to be invalid or ineffective for any reason;
(iii) failure of any beneficiary of any Letter of Credit to comply fully with
the conditions required in order to demand payment under a Letter of Credit;
(iv) errors, omissions, interruptions or delays in transmission or delivery of
any messages, by mail, cable, telegraph, telex or otherwise; (v) errors in
interpretation of technical terms; (vi) any loss or delay in the transmission
or otherwise of any document or draft required by or from a beneficiary in
order to make a disbursement under a Letter of Credit or the proceeds thereof;
(vii) the misapplication by the beneficiary of any Letter of Credit of the
proceeds of any drawing under such Letter of Credit; and (viii) any
consequences arising from causes beyond the control of Administrative Agent or
any Lender.  None of the foregoing will
affect, impair or prevent the vesting of any of the rights or powers granted to
Administrative Agent, Issuing Lender or the Lenders hereunder.  In furtherance and extension and not in
limitation or derogation of any of the foregoing, any act taken or omitted to
be taken by Administrative Agent, Issuing Lender or the other Lenders in good
faith will be binding on Borrower and will not put Administrative Agent,
Issuing Lender or the other Lenders under any resulting liability to Borrower.

 

(m)                               Unless
otherwise expressly agreed by the Issuing Lender and the Borrower, when a
Letter of Credit is issued (including any such agreement applicable to an
Existing Letter of Credit), the rules of the ISP shall apply to each Letter of
Credit.

 

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;
provided, however, that Swing Loans shall be paid pursuant to Section 2.1A
and Competitive Advances shall be paid pursuant to Section 2.4.

 

(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, Competitive Advance and payment made by the Issuing Lender
pursuant to a Letter of Credit 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, the Swing Loan 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 or any payment made by the Issuing Lender
pursuant to a Letter of Credit in accordance with the terms of this Agreement
or otherwise to make any payments in accordance with the Loan Documents.

 

40

 

(e)                                  Loans
Evidenced by Notes.  The Loans and
interest thereon shall at all times (including after assignment pursuant to
Section 11.7) be represented 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 at least
one Business Day prior to the proposed prepayment date in the case of Loans
consisting of Prime Rate Loans 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.  Such notice shall be irrevocable and the
amount specified in such notice shall be due and payable on the date specified,
together with accrued interest to the date of such payment on the amount
prepaid.  Upon receipt of such notice,
the Administrative Agent shall promptly notify each Lender of the contents
thereof.  Partial prepayments of (a)
Prime Rate Loans and/or LIBOR Loans shall be in an aggregate minimum principal
amount of $500,000 or such amount plus a whole multiple of $500,000 in excess
thereof and (b) Swing Loans shall be in a minimum principal amount of
$100,000, or, if less, the outstanding principal balance thereof.  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 Section 2.8(a)) $1,000,000
or such amount plus a whole multiple of $100,000 in excess thereof.  Any Loans prepaid may be reborrowed as provided
in Section 2.1, 2.1A and 2.4. 
Notwithstanding the foregoing, no prior notice shall be required for the
prepayment of any Swing Loan.

 

(b)                                 Mandatory
Prepayments.  If not sooner paid,
the principal Indebtedness evidenced by the Notes shall be payable as follows:

 

(i)                                     the
amount, if any, by which the principal Indebtedness evidenced by the Revolving
Credit Notes (after giving effect to all amounts disbursed thereunder) plus
the Letter of Credit Exposure plus the aggregate amount of Swing Loans
outstanding, at any time exceeds the Total Commitment Amount shall be payable
immediately;

 

(ii)                                  the
amount, if any, by which the principal Indebtedness evidenced by the Notes
(after giving effect to all amounts disbursed thereunder) plus the
Letter of Credit Exposure plus the aggregate amount of Swing Loans
outstanding, at any time exceeds the Total Commitment Amount shall be payable
immediately;

 

(iii)                               the
principal Indebtedness evidenced by each Competitive Advance Note shall be
payable on the maturity date of each Competitive Advance in the amount of such
Competitive Advance; and

 

(iv)                              the
principal Indebtedness evidenced by the Notes shall in any event be payable on
the Maturity Date.

 

41

 

Upon the occurrence of an event described in
Section 2.7(b)(i) or (ii) above, Borrower shall immediately upon demand
from Administrative Agent pay the amount of such excess to the Administrative
Agent first for the account of Swing Loan Lender for application to outstanding
Swing Loans and second for the respective accounts of the Lenders for
application first to Prime Rate Loans and then to LIBOR Loans

 

(c)                                  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.

 

(d)                                 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, first to the principal
of any outstanding Swing Loans, and then 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.  This
Section shall not apply to Competitive Advances or Swing Loans, which may
not be converted or continued beyond the Interest Period applicable thereto.

 

(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.

 

42

 

(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, 5 or 6).

 

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.

  
	
  Each
  Competitive Advance

  	
   

  	
  The rate for
  the applicable Competitive Advance determined pursuant to Section 2.4.

  
	
  Swing Loans

  	
   

  	
  The rate for
  the applicable Swing Loan determined pursuant to Section 2.1A.

  

 

(b)                                 Event
of Default.  After the occurrence
and during the continuance of an Event of Default, the outstanding prin-cipal
balance of (a) 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 (b) the Prime Rate Loans and any overdue
interest with respect thereto or other 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

 

43

 

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 (including Swing Loan 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 (including
Swing Loan 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 (i) 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 (ii) 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, (a) any Affected Advances shall be made as Prime Rate Loans, (b) 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
(c) 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 (i) or (ii),
as the case may be, of this Section has been withdrawn by the
Administrative Agent (by notice to the Borrower promptly upon either (x) 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 (y) 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

 

44

 

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 (i) the commitment of such Credit Party
hereunder to make LIBOR Loans or convert Prime Rate Loans to LIBOR Loans shall
forthwith be suspended and (ii) 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:

 

45

 

(a)                                  does
or shall subject any Credit Party to any Taxes of any kind whatsoever with
respect to any LIBOR Loans or any Letter of Credit or participation or
subparticipation therein or its obligations under this Agreement to make LIBOR
Loans, issue Letters of Credit or participate or subparticipate therein, 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 or
Letters of Credit or participations or subparticipations therein, 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

 

(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 or Letters of Credit or participations or
subparticipations therein, which, in the case of LIBOR Loans, is not otherwise
included in the determination of the LIBOR;

 

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, issuing Letters of Credit or participating or
subparticipating therein, or its commitment to make such LIBOR Loans, issue
Letters of Credit or participate or subparticipate therein, or to reduce any
amount receivable hereunder in respect of its LIBOR Loans, Letters of Credit or
participation or subparticipation therein, 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.

 

46

 

2.14                           Indemnification for Break Funding
Losses.

 

Notwithstanding anything contained herein to the contrary, if (i) 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 2.3 or 2.8, (ii) the Borrower shall fail to borrow
after having accepted one or more offers of Competitive Advances under
Section 2.4, or (iii) a LIBOR Loan or Competitive Advance 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 or the rate
which such Competitive Advance bears to such Loan, as the case may be;

 

“C” equals the applicable LIBOR or Proposed
Bid Rate (in each case, expressed as a decimal), as the case may be, 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 (or in the case of a Proposed Bid Rate, based on the rate such
Credit Party would have quoted) 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;

 

“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 or
Competitive Advance 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.

 

47

 

2.15                           Use of Proceeds.

 

The proceeds of Loans and the issuances of Letters of Credit 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 (i) 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, (ii) 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
(iii) 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, or Letter of Credit issued by such Credit Party (or participation or
subparticipation therein) as a consequence, directly or indirectly, of its
obligations to make and maintain the funding of its Loans or issue Letters of
Credit or participate or subparticipate therein 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

 

48

 

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.

 

2.18                           Extension of Maturity Date.  The Borrower shall have the one-time right
and option to extend the Maturity Date to June 29, 2008, upon satisfaction
of the following conditions precedent, which must be satisfied prior to the
effectiveness of any extension of the Maturity Date:

 

(a)                                  Extension
Request.  The Borrower shall deliver
written notice of such request (the “Extension Request”) to the Administrative
Agent not later than the date which is ninety (90) days prior to the Maturity
Date (as determined without regard to such extension).  Any such Extension Request shall be
irrevocable and binding on the Borrower. 
Upon the Administrative Agent’s receipt of such Extension Request, the
Administrative Agent shall promptly notify the Lenders of the contents thereof.

 

(b)                                 Payment
of Extension Fee.  The Borrower
shall pay to the Administrative Agent for the pro  rata accounts
of the Lenders in accordance with their respective Commitments an extension fee
in an amount equal to twelve and one-half (12.5) basis points on the Total
Commitment Amount in effect on the Maturity Date (as determined without regard
to such extension), which fee shall, when paid, be fully earned and
non-refundable under any circumstances.

 

(c)                                  No
Default.  On the date the Extension
Request is given and on the Maturity Date (as determined without regard to such
extension) there shall exist (i) no Default or Event of Default and (ii) no
Default or Event of Default (as such terms are defined in the Existing Credit
Agreement) under the Existing Credit Agreement.

 

(d)                                 Representations
and Warranties.  The representations
and warranties made by the Borrower and the Subsidiary Guarantors in the Loan
Documents or otherwise made by or on behalf of the Borrower and the Subsidiary
Guarantors in connection therewith or after the date thereof shall have been
true and correct in all material respects when made and shall also be true and
correct in all material respects on the Maturity Date (as determined without
regard to such extension) other than for changes in the ordinary course of
business permitted by this Agreement that have not had a Material Adverse
Effect.

 

2.19                           Representative of Borrower.  Borrower hereby appoints each of the
Authorized Signatories as its agent, attorney-in-fact and representative for
the purpose of making Borrowing Requests, Competitive Bid Requests, acceptance
of Competitive Bids, Letter of Credit Requests, payment and prepayment of Loans
and Competitive Advances, the giving and receipt of notices by and to Borrower
under this Agreement and all other purposes incidental to any of the
foregoing.  Borrower agrees that any
action taken by any such Authorized Signatory as the agent, attorney-in-fact
and representative of Borrower shall be binding on Borrower to the same extent
as if directly taken by Borrower.

 

49

 

3.                                       FEES; PAYMENTS.

 

3.1                                 Facility Fee.

 

(a)                                  The
Borrower agrees to pay to the Administrative Agent, for the account of the
Lenders in accordance with each Lender’s Commitment Percentage, an annual fee
(the “Facility Fee”), from the Effective Date through the Maturity Date,
computed as follows: while any Loans are outstanding, an amount, determined
periodically as hereinafter set forth, equal to the product of (i) the
Applicable Facility Fee Percentage times (ii) the average daily Total
Commitment Amount.  The Facility Fee
shall be payable quarterly in arrears on the last Business Day of each March,
June, September and December of each year, commencing on the first
such day following the Effective Date, on any termination of the Total
Commitment Amount, and on the Maturity Date. 
The Facility Fee (and the Applicable Facility Fee Percentage) shall be
calculated on the basis of a 360 day year for the actual number of days elapsed
without regard to the amount of Loans outstanding during any period for which
the Facility Fee is computed.

 

(b)                                 The
Borrower agrees to pay to Bank of America, individually and as a Lead Arranger,
on the Effective Date an arrangement, commitment and loan structuring fee (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.

 

(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.  All fees and
other amounts payable under paragraph (a) of this Section shall be paid on
the dates due, in immediately available funds, to the Administrative Agent for
distribution, in the case of the Facility Fee and participation fees described
therein, and other fees and amounts payable under this Section shall be
payable directly to the Credit Party to whom such fees and other amounts are
payable.  The Bank of America Fee, the
Facility 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 Facility Fee, the Bank of America Fee, the Administrative
Agent’s fees, Letter of Credit 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, (i) 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, (ii) to the Lenders who maintain any of their Revolving Credit Loans as
Competitive Advances, each such Lender’s pro rata share of such payments which
are in respect of principal or interest due on such Competitive Advances in
accordance with Section 2.4, (iii) in the case of the Facility Fee, to all
Lenders pro rata in accordance with each Lenders Commitment Percentage thereof,
(iv) in the case of Swing Loan fees, to the Swing Loan Lender, and (v) in the

 

50

 

case of Letter of Credit fees, to the Issuing Lender and the Lenders as
provided in Section 2.5.  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 or Competitive Advances 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.

 

(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.

 

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.

 

4.3                                 Binding Agreement.

 

(a)                                  The
Loan Documents to which the Borrower is a party constitute the valid and
legally binding obligations of the Borrower, enforceable in accordance with
their respective

 

51

 

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 of the Loan Documents to
which it 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) if adversely determined, 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.

 

(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.

 

52

 

4.6                                 Required Consents.

 

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 to authorize, or is
required in connection with the execution, delivery and performance of the Loan
Documents or is required to be obtained by the Borrower 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, (i) Environmental Laws and ERISA, a
violation of which could reasonably be expected to have a Material Adverse
Effect and (ii) §§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 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 Public Utility Holding Company Act of 1935, as amended,
the Federal Power Act, as amended, or the Investment Company Act of 1940, as
amended, and neither the Borrower nor any Subsidiary of

 

53

 

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. 
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, 2004, 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 (i) copies of the audited Consolidated Balance Sheet of the
Borrower and its Consolidated Subsidiaries as of December 31, 2003, 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, 2004, and (ii) the unaudited Consolidated
Statements of Income and Cash Flows for the Borrower and its Consolidated Subsidiaries
for the three months ended March 31, 2004, 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. 
Except as reflected in the Financial Statements or in the notes thereto,
neither the Borrower nor any Subsidiary of the Borrower 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, 2004 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.

 

54

 

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 (i) real estate or other taxes or assessments that are not yet due and
payable, and (ii) 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.

 

(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 (x)

 

55

 

any non-compliance with or violation of the requirements of any
applicable Environmental Laws, or (y) 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                           [Intentionally Omitted.]

 

4.19                           Solvency.

 

On the Effective Date and immediately following the making of each Loan
(assuming for the purposes of this paragraph that the Letter of Credit Exposure
is included as a part of the Loans), and after giving effect to the application
of the proceeds of such Loan:  (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

 

56

 

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.

 

4.20                           REIT Status.

 

The Borrower (i) has made an election pursuant to Section 856 of
the Code to qualify as a REIT, (ii) 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 (iii) 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, 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 misleading in the
light of the circumstances under which made.

 

4.24                           Anti-Terrorism Laws.

 

Neither Borrower nor any Subsidiary Guarantor
is (or will be) a person with whom a Lender is restricted from doing business
under regulations of the Office of Foreign Asset Control (“OFAC”) of the
Department of the Treasury of the United States of America (including, those
Persons named on OFAC’s Specially Designated and Blocked Persons list) or under
any statute, executive order (including, the September 24, 2001 Executive
Order Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism), or other governmental action and is
not and shall not knowingly engage in any dealings or transactions or otherwise
knowingly be associated with such persons. 
In addition, Borrower hereby agrees to (a) take any such actions as any
Lender deems reasonably necessary, and (b) provide to any Lender any additional
information that such Lender deems reasonably necessary, from time to time in
order to ensure compliance with all applicable Laws concerning money laundering
and similar activities.

 

57

 

5.                                       CONDITIONS TO EFFECTIVENESS OF THIS
AGREEMENT.

 

In addition to the conditions precedent set forth in Section 6,
the obligation of each Lender to make its initial Loan, or the Swing Loan
Lender to make the initial Swing Loan or the Issuing Lender to issue the
initial Letter of Credit 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 O (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 P (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.

 

58

 

(c)                                  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 from the Secretary of State for the State in which
such Subsidiary Guarantor is incorporated, and for the Borrower from each
jurisdiction other than Maryland in which the Borrower is qualified to do
business, provided that such Secretaries issue such certificates with respect
to the Borrower.

 

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.

 

The Administrative Agent shall have received, for the benefit of each
Lender and the Swing Loan Lender, as the case may be, a Revolving Credit Note
and Competitive Advance Note in favor of each Lender, and the Swing Loan Note
in favor of Swing Loan Lender, each of 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                                 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.

 

5.6                                 Opinion of Counsel to the Borrower.

 

The Administrative Agent shall have received an opinion of (i) Hogan
& Hartson, L.L.P., outside counsel to the Borrower, and (ii) Steven F.
Siegel, Esq., in-house counsel to the Borrower, and (iii) counsel to each
Subsidiary Guarantor, 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.

 

59

 

5.7                                 Fees.

 

The Facility Fee, to the extent then due and payable, the Bank of
America Fee and all other fees payable to the Administrative Agent, any Lead
Arranger, the Lenders, the Swing Loan Lender and the Issuing Lender shall have
been paid.

 

5.8                                 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.

 

6.                                       CONDITIONS OF LENDING – ALL LOANS.

 

The obligation of each Lender to make any Loan or of the Swing Loan
Lender to make a Swing Loan or an Issuing Lender to issue any Letters of Credit
is subject to the satisfaction of the following conditions precedent as of the
date of such Loan or issuance of such Letter of Credit:

 

6.1                                 Compliance.

 

On each Borrowing Date and after giving
effect to the Loans to be made or created, and after the issuance of any Letter
of Credit, (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 with the same effect
as though such representations and warranties had been made on such Borrowing
Date (except for representations and warranties that speak as of a specific
date, which need only be true and correct as of such date), (d) the aggregate
outstanding principal balance of the Loans plus the Letter of Credit
Exposure plus the aggregate principal amount of all Swing Loans shall not
exceed the Total Commitment Amount, and (e) the aggregate outstanding principal
balance of the Swing Loans shall not exceed the Swing Loan Commitment.  Each notice requesting a Revolving Credit
Loan, a Competitive Advance, a Swing Loan or a Letter of Credit shall be deemed
to constitute a representation and warranty by the Borrower on the date thereof
that each of the foregoing matters is true and correct in all respects.

 

6.2                                 Loan Closings.

 

All documents required by the provisions of
the Loan Documents to be executed or delivered to the Administrative Agent on
or before the applicable Borrowing Date or prior to the issuance of a Letter of
Credit 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 such
Borrowing Date or prior to the issuance of a Letter of Credit.

 

6.3                                 Requests.

 

With respect to each borrowing of a Loan or
issuance of a Letter of Credit, the Administrative Agent shall have timely received
a Borrowing Request, a Competitive Bid Request or Letter of Credit Request, as
the case may be, duly executed by an Authorized Signatory of the Borrower and
otherwise in compliance with the terms of this Agreement.

 

60

 

6.4                                 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.

 

6.5                                 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 such Borrowing
Date or prior to the issuance of a Letter of Credit 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.

 

6.6                                 Approval of Special Counsel.

 

All legal matters in connection with the
making of each Loan and issuance of each Letter of Credit shall be reasonably
satisfactory to Special Counsel.

 

6.7                                 Supplemental Opinions.

 

If reasonably requested by the Administrative
Agent with respect to the applicable Borrowing Date or issuance of a Letter of
Credit, there shall have been delivered to the Administrative Agent favorable
supplementary opinions of counsel to the Borrower, addressed to the
Administrative Agent and the Lenders and dated such Borrowing Date or date of
issuance of such Letter of Credit, covering such matters incident to the
transactions contemplated herein as the Administrative Agent may reasonably
request.

 

6.8                                 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.

 

7.                                       AFFIRMATIVE COVENANTS.

 

The Borrower agrees that, so long as any Loan remains outstanding and
unpaid or there exists any Letter of Credit Exposure, or any other amount is
owing under any Loan Document to any Lender or the Administrative Agent, or any
Lender has any obligation to make any Loans, or the Swing Loan Lender has any
obligation to make any Swing Loans or the Issuing Lender has any obligation to
issue any Letters of Credit, the Borrower shall:

 

61

 

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 and each Lender:

 

(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 certified without qualification by the
Accountants, which certification shall (i) state that the examination by such
Accountants in connection with such Consolidated financial statements has been
made in accordance with generally accepted auditing standards and, accordingly,
includes the examination, on a test basis, of evidence supporting the amounts
and disclosures in such Consolidated financial statements, and (ii) include 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).

 

(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

 

(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. 
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:  (i) location; (ii) percentage of the
Unencumbered Asset

 

62

 

owned by the Borrower, any wholly owned Subsidiary of the Borrower,
each DownREIT Partnership and any wholly owned Subsidiary of a DownREIT
Partnership; and (iii) the Net Operating Income for such Unencumbered Asset
during such fiscal quarter.

 

(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 8.12, 8.13, 8.14, 8.15, 8.16, 8.17
and 8.18.

 

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

 

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 and each Lender:

 

(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;

 

(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;

 

63

 

(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;

 

64

 

(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

 

(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 Sections 8.12 and 8.16;

 

(g)                                 Casualties
or Condemnations.  Prompt written
notice of any casualty or condemnation of any Real Property, if such casualty
or condemnation, individually or together with any other casualty or condemnation
of any Real Property in the aggregate, 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

 

65

 

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.

 

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, 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

 

66

 

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.

 

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 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 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

 

67

 

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 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.

 

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 5.6 (iii)) 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

 

68

 

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 5.6 (iii)). 
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,
(i) an Event of Default, or (ii) 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.

 

7.13                           More Restrictive Agreements.

 

Should Borrower or any Subsidiary Guarantor after the date hereof enter
into any agreement or modify any existing agreement (a “More Restrictive
Agreement”) relating to any unsecured Indebtedness of Borrower or any
Subsidiary Guarantor that includes negative covenants or default provisions (or
any other provision which may have the same practical effect) which are more
restrictive against Borrower or any Subsidiary Guarantor than those set forth
in Section 8, Section 9.1(g) or Section 9.1(j) of this Agreement
(the “Original Provisions”), the Borrower shall promptly notify the
Administrative Agent and, if requested by the Required Lenders, the Borrower,
the Administrative Agent, and the Required Lenders shall (and if applicable,
the Borrower shall cause any Subsidiary Guarantor to) promptly amend this
Agreement and the other Loan Documents to include some or all of such more
restrictive provisions as determined by the Required Lenders in their sole
discretion.  The Borrower and each Subsidiary
Guarantor agree to deliver to the Administrative Agent copies of any agreements
or documents (or modifications thereof) pertaining to any such Indebtedness as
the Administrative Agent from time to time may request.  Notwithstanding the foregoing, any
amendments to provisions contained in this Agreement and the other Loan
Documents made pursuant to this Section 7.13 shall only be effective for
such period of time as the applicable More Restrictive Agreement is in full
force and effect (or continues to be more restrictive), and upon the termination
of the effectiveness of such More Restrictive Agreement (or upon such More
Restrictive Agreement becoming less restrictive than the corresponding Original
Provision), the provisions affected by such amendment shall return to the
applicable Original Provisions.

 

69

 

8.                                       NEGATIVE COVENANTS.

 

The Borrower agrees that, so long as any Loan remains outstanding and
unpaid, or there exists any Letter of Credit Exposure, or any other amount is
owing under any Loan Document to any Lender or the Administrative Agent, or any
Lender has any obligation to make any Loans or the Issuing Lender has any
obligation to issue any Letters of Credit, 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”:  (i) 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, (ii) 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), (iii) 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, (iv)
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 do not materially
adversely affect the value of such Real Property or materially impair its use
for the operation of the business of the Borrower or such Subsidiary, (v)
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, (vi) 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),
(vii) mortgages and related financing statements and security agreements on
Real 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, (viii) Liens in favor of the Borrower or any
Subsidiary Guarantor, provided that the Indebtedness secured by any such Lien
is held by the Borrower or such Subsidiary Guarantor, (ix) the interests of
lessees and lessors under leases 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, (x) 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, 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, (xi) 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, and (xii) Liens not
otherwise permitted by clauses (i) through (xi) of this Section which do
not in the aggregate exceed, in principal amount, $15,000,000.

 

70

 

8.2                                 Merger, Consolidation and Certain Dispositions of
Property.

 

(a)                                  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 of the Borrower 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, based on the advice of the Accountants, 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 8.12, 8.13, 8.14, 8.15, 8.16, 8.17 and 8.18
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, (x) no Default or Event of Default shall then exist, (y) such
transaction does not violate Section 8.2(b) and (z) 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
Subsidiary Guaranty, provided that the Borrower shall deliver to Administrative
Agent evidence satisfactory to Administrative Agent that (X) the Borrower
will be in compliance with all covenants of this Agreement after giving effect
to such transaction, (Y) if such transaction involves the sale or
disposition by a Subsidiary Guarantor of all or substantially all of its
Property, such Subsidiary Guarantor shall be legally dissolved after its
release from the Subsidiary Guaranty (provided further that a Subsidiary
Guarantor that has transferred substantially all of its assets may be released
from its liability under the Subsidiary Guaranty without dissolving upon the
approval of the Administrative Agent, which approval may be withheld in its
sole discretion) and (Z) 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

 

71

 

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)                                 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(b), 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 to any Subsidiary Guarantor,
(iii) in connection with any transaction pursuant to which a Real Property
asset of Borrower or any Subsidiary Guarantor is or will be encumbered with a
mortgage (as permitted under Section 8.1(vii)), the Borrower or any
Subsidiary Guarantor may transfer such asset to any Subsidiary,
(iv) Borrower or any Subsidiary Guarantor of Borrower may sell, transfer,
contribute or dispose of worn-out or obsolete Property, (v) Borrower or
any Subsidiary Guarantor may sell, transfer, contribute, master lease or
otherwise dispose of any of its assets 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, and (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)), 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 date of each
such transaction.  Except as set forth
in the following sentence, nothing in this Section 8.2(b) (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(b) 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, purchase or otherwise acquire, hold or invest in the Stock
of, or any other interest in, any Person, or make any loan or advance to, or
enter into any arrangement for the purpose of acquiring, holding or investing
in or loaning or advancing to, or make any other investment, whether by way of
capital contribution, time deposit or otherwise, in or with any Person, or
permit any Subsidiary of the Borrower so to do, (all of which are sometimes
referred to herein as “Investments”, it being understood, without
limitation, that the provision by Borrower or

 

72

 

any Subsidiary of guarantees and/or letters of credit to other Persons
shall not constitute Investments but shall instead constitute Indebtedness)
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):

 

(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 (1) equipment, inventory and other tangible personal property or
intangible property acquired in the ordinary course of business, (2) current
trade and customer accounts receivable for services rendered in the ordinary
course of business, (3) advances to employees for travel expenses other
company-related expenses, and (4) prepaid expenses made in the ordinary course
of business;

 

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

 

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(l)                                     repurchases
of any common or preferred stock or other equity interests (or securities
convertible into such interests) in the Borrower that have been previously
issued by the Borrower which do not exceed, in any calendar year, (1) 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 (2) 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

 

(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 or its Subsidiaries 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 have the same result.

 

8.6                                 [Intentionally Omitted.]

 

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.

 

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8.8                                 Transactions with Affiliates.

 

Become a party to any transaction in an amount that exceeds $100,000
with an Affiliate unless the terms and conditions relating thereto (i) have
been approved by a majority of the disinterested directors of the Borrower,
(ii) have been approved by a majority of votes cast by the stockholders of the
Borrower, or (iii) 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 its
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:

 

(i)                                     except
as set forth in clause (ii) 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 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 (A)
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 (B) 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 (B)) by a certification of Chief Financial Officer
containing calculations in reasonable detail satisfactory in form and substance
to Administrative Agent;

 

(ii)                                  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;

 

75

 

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

 

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

 

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

 

(vi)                              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                           Unencumbered Assets Coverage Ratio.

 

Permit the Unencumbered Assets Coverage Ratio to be less than 2.0:1.0
at any time.

 

8.13                           Fixed Charge Coverage Ratio.

 

Permit the Fixed Charge Coverage Ratio to be less than 1.75:1.0 at any
time.

 

8.14                           Minimum Tangible Net Worth.

 

Permit the Tangible Net Worth of the Borrower and its Subsidiaries
determined on a Consolidated basis in accordance with GAAP at any time to be
less than the sum of (i) $1,278,400,000, plus (ii) 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                           Maximum Total Indebtedness.

 

(a)                                  Permit
at any time Consolidated Total Indebtedness to be more than 57.5% of Adjusted
Consolidated Total Assets at such time; 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 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 unsecured Indebtedness of
the Borrower and its Subsidiaries at such time to be more than 55% of
Unencumbered Asset Value at such time.

 

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 determined on a

 

76

 

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 book value 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.

 

9.                                       DEFAULT.

 

9.1                                 Events of Default.

 

The following shall each constitute an “Event of Default” hereunder:

 

(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, any reimbursement
obligations under the Letters of Credit (other than obligations included in
Section 9.1(a)), 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 and 8.10 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 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; or

 

77

 

(f)                                    Any
representation or warranty of the Borrower (or of any officer of the Borrower
on its 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

 

(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

 

(j)                                     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

 

78

 

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

 

(k)                                  Judgments
or decrees against the Borrower or any Subsidiary of the Borrower 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

 

(l)                                     Any
Loan Document shall cease, for any reason, to be in full force and effect, or
the Borrower shall so assert in writing or shall disavow any of its obligations
thereunder; or

 

(m)                               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

 

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

 

(o)                                 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

 

(p)                                 (i) 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, the Lead
Arranger 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 Commitments shall immediately and
automatically terminate, and 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, any or all of the following actions may be taken: (i) with
the consent of the Required Lenders, Administrative Agent may, and upon the
direction of the Required Lenders shall, by notice to the Borrower, declare the
Commitments to be terminated forthwith, whereupon the Commitments shall
immediately terminate, and (ii) with the consent of the Required Lenders, the
Administrative Agent may, and upon the direction of the Required

 

79

 

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.  Notwithstanding
anything contained herein to the contrary, if demanded by Administrative Agent
or the Required Lenders in their sole and absolute discretion (a) after
the occurrence and during the continuation of an Event of Default or
(b) if the Issuing Lender has honored any full or partial drawing request
under any Letter of Credit and such drawing has not been reimbursed on the date
when made or refinanced as a Prime Rate Loan, Borrower will deposit with and
pledge to Administrative Agent cash in an amount equal to the amount of all
undrawn Letters of Credit.  Such amounts
will be pledged to and held by Administrative Agent for the benefit of the
Lenders as security for any amounts that become payable under the Letters of
Credit and all other obligations hereunder. 
Upon any draws under Letters of Credit, at Administrative Agent’s sole
discretion, Administrative Agent may apply any such amounts to the repayment of
amounts drawn thereunder and upon the expiration of the Letters of Credit any
remaining amounts will be applied to the payment of all other obligations of
Borrower under the Loan Documents or if there are no such outstanding
obligations and Lenders have no further obligation to make Loans or issue
Letters of Credit or if such excess no longer exists, such proceeds deposited
by Borrower will be released to Borrower.

 

In the event that the Commitments shall have been terminated or 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 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 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 Swing Note; (v) fifth, to
the payment of principal outstanding on the Swing Note; (vi) sixth, to the
payment of interest due on the Notes; (vii) seventh, to the payment of
principal outstanding on the Notes; and (viii) eighth, to the payment of any
other amounts owing to the Administrative Agent, the Lead Arranger and the
Lenders under any Loan Document or other document or agreement entered into in
connection with the transactions contemplated thereby.  In the event that any Lender shall have
wrongfully failed or refused to make an advance under Section 2.1, 2.1A,
2.3, 2.4 or 2.5 and such failure or refusal shall be continuing, advances made
by the other Lenders during the pendency of such failure or refusal shall be
entitled

 

80

 

to be repaid as to principal and accrued interest in priority to the
other obligations described in subsections (ii) – (viii) in the preceding
sentence.

 

10.                                 THE AGENT.

 

10.1                           Appointment and Authority.

 

Each of the Lenders and the Issuing Lender 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.  The provisions of this Article are solely for the benefit of
the Administrative Agent, the Lenders, and the Issuing Lender, 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

 

81

 

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
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, Article VI or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

 

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.

 

82

 

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 Document 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 credit facilities
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 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, the Issuing Lender 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 and the Issuing Lender 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

 

83

 

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 as Administrative Agent 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 Supermajority 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 Supermajority 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
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
actions 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
Supermajority 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.

 

Any resignation by, or removal of, Bank of America as Administrative
Agent pursuant to this Section shall also constitute its resignation or
removal, as applicable, as Issuing Lender and Swing Loan Lender.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring or removed Issuing Lender and Swing Loan Lender,
(b) the retiring or removed Issuing Lender and Swing Loan Lender shall be
discharged from all of their respective duties and obligations hereunder or
under the other Loan Documents, and (c) the successor Issuing Lender shall
issue letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangement
satisfactory to the retiring or removed Issuing Lender to effectively assume,
at the time of such succession, the obligations of the retiring or removed
Issuing Lender with respect to such Letters of Credit.  After the retiring Issuing Lender’s and
Swing Lender’s resignation 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

 

84

 

retiring Issuing Lender and Swing Lender, their 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 Issuing Lender and Swing Lender were
acting as Issuing Lender and Swing Lender, respectively.

 

10.9                           Non-Reliance on Administrative
Agent and Other Lenders.

 

Each Lender and the Issuing 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 and the Issuing 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.

 

10.10                     No Other Duties,
Etc.

 

Anything herein to the contrary notwithstanding, none of the Book
Manager, Lead Arrangers, Documentation Agents, Managing Agent or Syndication
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, a Lender or
the Issuing 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 or
Letter of Credit Exposure 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 or Letter of Credit Exposure 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, the Issuing
Lender and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the Issuing
Lender and the Administrative Agent and their respective agents and counsel and
all other amounts due the Lenders, the Issuing Lender and the Administrative
Agent under Sections 2.5(f)  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;

 

85

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Lender and the Issuing 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 and the
Issuing Lender, 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, or the Issuing 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                     Guaranty
Matters.  The Lenders and the
Issuing Lender irrevocably authorize the Administrative Agent, at its option
and in its discretion, 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) such release is permitted pursuant to
and in accordance with Section 8.2.

 

Upon request by the Administrative Agent at any time, the Required
Lenders will confirm in writing the Administrative Agent’s authority 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: 
(i) increase the Commitment of any Lender or the Total Commitment
Amount or decrease the Commitment of any Lender other than a pro rata reduction
of the Total Commitment in accordance with the terms of this Agreement; (ii)
extend the Maturity Date; (iii) 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, (iv) amend the definitions of
“Required Lender” or “Supermajority Lenders”, (v) amend any provision of this
Agreement or the Loan Documents which requires the approval of all of the
Lenders, the Supermajority Lenders or the Required Lenders to require a lesser
number of Lenders to approve such action, (vi) release any Subsidiary Guarantor
from its obligations under a Guaranty except as provided in Section 8.2,
or

 

86

 

(vii) change the provisions of Section 3.1 or 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.  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, (i) there shall be no amendment, modification or waiver of any
provisions in the Loan Documents with respect to Swing Loans, Competitive
Advances or Letters of Credit  without
the consent of the Swing Loan Lender, or any Lender then holding a Competitive
Advance, or Issuing Lender, respectively and (ii) 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.

 

All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered
by hand, or if sent by certified mail (return receipt requested), when the
return receipt is signed on behalf of the party to whom such notice is given,
or in the case of telecopier notice, when sent with a confirmation received, or
if sent by overnight nationwide commercial courier, the Business Day following
the date such notice is deposited with said courier, and in any case addressed
as follows in the case of the Borrower or the Administrative Agent, and at the
Domestic Lending Office in the case of each Lender, or to such other addresses
as to which the Administrative Agent may be hereafter notified by the
respective parties hereto or any future holders of the Notes:

 

The Borrower:

 

New Plan Excel Realty Trust, Inc.

1120 Avenue of the Americas; 12th
Floor

New York, New York 10036

Attention:                      John B. Roche,

Chief Financial Officer

Telephone:                 (212) 869-3000

Telecopy:                        (212) 869-3989

 

87

 

with a copy to:

 

New Plan Excel Realty Trust, Inc.

1120 Avenue of the Americas

New York, New York 10036

Attention:                      Steven F. Siegel, Esq., General
Counsel

Telephone:                 (212) 869-3000

Telecopy:                        (212) 869-7460

 

The Administrative Agent:

 

Bank of America, N.A.

Agency Management

TX 1-492-14-11

901 Main Street, 14th Floor

Dallas, TX 75202

Attention:                      Kajal Patel

Telephone:                 (214) 209-4109

Telecopy:                        (214) 290-9448

(the above address being the initial
Administrative Agent’s Office)

 

with a copy to:

 

Bank of America, N.A.

Credit Services

TX 1-492-14-05

901 Main Street, 14th Floor

Dallas, Texas 75202

Attention: 
Nora J. Taylor

Telephone:                 (214) 209-0592

Telecopy:                        (214) 290-9673

 

with a copy to:

 

Bank of America, N.A.

231 South LaSalle Street, 10th Floor

Chicago, Illinois 60697

Attention: 
Mark A. Mokelke

Telephone:                 (312) 828-1739

Telecopy:                        (312) 974-4970

 

except that any notice, request or demand by
the Borrower to or upon the Administrative Agent or the Lenders pursuant to
Section 2.8 shall not be effective until received.  Any party to a Loan Document may rely on
signatures of the parties thereto which are transmitted by telecopier or other
electronic means as fully as if originally signed.

 

88

 

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 or any Letter of Credit shall
remain outstanding.

 

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 (i) to pay or reimburse Bank of
America, Administrative Agent and Bank of America in its capacity as Lead
Arranger 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, (ii) 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 (x) any Default or Event of Default and
any enforcement or collection proceedings resulting therefrom (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 and (y) the
enforcement of this Section, (iii) 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 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 (iv) 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 

 

89

 

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 or the Loan Documents, 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 (A) the gross
negligence or willful misconduct of such Credit Party or (B) 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 (iv) of the preceding paragraph shall not be payable by the Borrower if
(x) 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 (y) if 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, or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section (and any other attempted

 

90

 

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, the Issuing Lender 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 Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment
and the Loans (including for purposes of this subsection (b),
participations and subparticipations in Letter of Credit Exposure and in Swing
Loans) at the time owing to it); provided that

 

(i)                                     except
in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the Commitment is not
then in effect, 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, and after giving effect to such assignment,
shall not be less than $5,000,000 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);

 

(ii)                                  unless
otherwise approved by the Administrative Agent, such assignee shall acquire an
interest in the Loans of not less than $5,000,000 or such amount plus a whole
multiple of $1,000,000 in excess thereof, unless such assignee is acquiring all
of the assigning Lender’s Commitment;

 

(iii)                               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 or the Commitment assigned, except that this clause (iii)
shall not apply to rights in respect of Competitive Advances or Swing Loans;

 

(iv)                              any
assignment of a Commitment must be approved by the Administrative Agent, the
Issuing Lender and the Swing Loan Lender unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee), provided, however, that the
Administrative Agent’s, the Issuing Lender’s and the Swing Loan Lender’s
approval shall not be required following and during the continuation of an
Event of Default so long as such assignee is a financial institution having a
net worth of not less than $300,000,000.00 as of the date of such assignment;
and

 

(v)                                 the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

 

91

 

In connection with such assignment, the assignor may assign all or any
portion of its Competitive Advance Note and the Competitive Advances at the
time owing to it, which, if so assigned, shall be assigned in such proportion
as the assignor and assignee agree, but in no event shall the assignee acquire
an interest in the Competitive Advances of the assignor of less than
$5,000,000.00; provided, however, that in the event such assignor assigns all
of its Commitment, such assignor shall assign all of its Competitive Advance Note
and Competitive Advances, if any, in connection therewith.  In the event that a portion of a Competitive
Advance is assigned to such assignee, the Borrower shall upon the request of
such assignee execute and deliver to such assignee a Competitive Advance Note,
dated the effective date of such assignment and which shall otherwise be in
substantially the form of the Competitive Advance Notes.

 

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 Eligible 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 and Letter of Credit
Exposure 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 each of the Borrower and the Issuing Lender 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.

 

(d)                                 Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, 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 

 

92

 

rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans (including such Lender’s
participations and subparticipations in any Letter of Credit Exposure and/or
Swing 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 and
the Issuing Lender 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
as Issuing Lender or Swing Loan Lender after Assignment.  Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to subsection (b) above, Bank of America may, (i) upon

 

93

 

30 days’ notice to the Borrower and the Lenders, resign as Issuing
Lender and/or (ii) upon 30 days’ notice to the Borrower, resign as Swing Loan
Lender.  In the event of any such
resignation as Issuing Lender or Swing Loan Lender, the Borrower shall be
entitled to appoint from among the Lenders a successor Issuing Lender or Swing
Loan Lender hereunder subject to the acceptance of such appointed Lender in
writing, provided, however, in the event that no Lender shall agree to accept
such appointment, then the Person serving as Administrative Agent following
such assignment by Bank of America shall serve as the Issuing Lender and/or
Swing Lender; provided  further, however, that no failure
by the Borrower to appoint, or Administrative Agent to accept, any such
successor shall affect the resignation of Bank of America as Issuing Lender or
Swing Loan Lender, as the case may be. 
If Bank of America resigns as Issuing Lender, it shall retain all the
rights and obligations of the Issuing Lender hereunder with respect to all
Letters of Credit outstanding as of the effective date of its resignation as
Issuing Lender and all Letters of Credit Exposure with respect thereto
(including the right to require the Lenders to make Prime Rate Loans or fund
risk participations or subparticipations in unreimbursed amounts pursuant to Sections
2.5(g) and 2.5(h)).  If Bank
of America resigns as Swing Loan Lender, it shall retain all the rights of the
Swing Loan Lender provided for hereunder with respect to Swing Loans made by it
and outstanding as of the effective date of such resignation, including the
right to require the Lenders to make Prime Rate Loans or fund risk
participations in outstanding Swing Loans pursuant to Sections 2.1(A)(d)
and 2.1(A)(e).

 

(i)                                     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 (including, without
limitation, the consultation with, and approval from, the Borrower, to the
extent required under Section 10.8.

 

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

 

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

 

94

 

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, including Swing Loan Lender (a “Benefited Lender”), shall at any
time receive any payment of all or any part of its Loans or participation or
subparticipation in payments made by the Issuing Lender pursuant to a Letter of
Credit or Swing 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
participation or subparticipation in payments made by the Issuing Lender
pursuant to a Letter of Credit or Swing 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 participation and subparticipation in
payments made by the Issuing Lender pursuant to a Letter of Credit or Swing
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 or participations or
subparticipations in payments by the Issuing Lender pursuant to a Letter of
Credit or Swing 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.

 

(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,

 

95

 

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: 
(i) 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; (ii) 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; or (iii) any acts, practices or omissions of the Borrower or its
agents relating to 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,
regulation or other law of any jurisdiction applicable thereto, whether or not
such Indemnified Person is a party thereto. 
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 primarily out of 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.

 

96

 

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.

 

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                     [Intentionally Omitted.]

 

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 referred to in 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 (i) shall be
deemed in every respect effective service of process upon it in any such suit,
action, or proceeding, and (ii) shall to the fullest extent enforceable by law,
be taken and held to be valid personal service upon and personal delivery to
it.

 

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

 

97

 

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.

 

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.

 

98

 

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, 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 restrictions and other requirements contained in, and consents required
by, Section 11.7), all of its 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

 

(e)                                  from
and after the effective date of such assignment the assigning Lender 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                     Relationships.  None of the Administrative Agent, any
Lender, the Issuing Lender or the Swing Loan Lender has any fiduciary
relationship with or fiduciary duty to the Borrower, the Subsidiary Guarantors
or their respective Subsidiaries arising out of or in connection with this
Agreement or the other Loan Documents or the transactions contemplated
hereunder and thereunder, and the relationship between each Lender and the
Borrower is solely that of a lender and borrower, and nothing contained herein
or in any of the other Loan Documents shall in any manner

 

99

 

be construed as making the parties hereto partners, joint venturers or
any other relationship other than lender and borrower.

 

[SIGNATURES COMMENCE ON FOLLOWING PAGE]

 

100

 

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

  	
   

  

 

101

 

	
   

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

  association, individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael W. Edwards

  	
   

  
	
   

  	
   

  	
  Name:  Michael W. Edwards

  	
   

  
	
   

  	
   

  	
  Title:  Managing Director

  	
   

  

 

Bank of America, N.A.

Agency Management

TX1-492-14-11

901 Main Street, 14th Floor

Dallas, TX  75202

Attention:                      Kajal
Patel

Telecopy:                        (214)
290-9448

 

and

 

Bank of America, N.A.

231 South LaSalle Street, 10th Floor

Chicago, Illinois 60697

Attn:  Mark A. Mokelke

Telecopy:                        (312)
974-4970

 

102

 

	
   

  	
  THE BANK OF NEW YORK, individually and as

  Syndication Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Rick Laudisi

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Rick Laudisi

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
							

 

Bank of New York

One Wall Street, 21st Floor

New York, New York 10286

Attn:  Mr. Rick Laudisi

Facsimile:  (212) 809-9526

 

 

	
   

  	
  JPMORGAN CHASE BANK, individually and as

  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Marc E. Costantino

  	
   

  
	
   

  	
  Name:

  	
   

  	
   Marc E. Costantino

  	
   

  
	
   

  	
  Title:

  	
   

  	
   Vice President

  	
   

  
							

 

JPMorgan Chase Bank

270 Park Avenue, 4th Floor

New York, New York  10017

Attn:  Marc Costantino

Facsimile:  (212) 270-0213

 

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION, a

  national banking association, individually and as

  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   John Scott

  	
   

  
	
   

  	
  Name:

  	
   

  	
  John Scott

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
							

 

 

KeyBank National Association

1146 19th Street, NW, Suite 400

Washington, DC  20036

Attn:  Mr. John C. Scott

Facsimile:  (202) 452-4925

 

and

 

KeyBank National Association

1146 19th Street, NW, Suite 400

Washington, DC  20036

Attn:  Ms. Jennifer Dakin 

Facsimile:  (202) 452-4925

 

 

	
   

  	
  WELLS FARGO BANK, N.A., individually and as

  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher B. Wilson

  	
   

  
	
   

  	
  Name:

  	
  Christopher B. Wilson

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
						

 

Wells Fargo Bank, N.A.

40 West 57th Street

21st Floor

New York, New York  10019

Attn:  Christopher B. Wilson

Facsimile:  (212) 581-0979

 

 

	
   

  	
  SUNTRUST BANK, individually and as Managing

  Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Nancy B. Richards

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Nancy B. Richards

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
							

 

SunTrust Bank

Real Estate Finance Group

8245 Boone Boulevard

Suite 820

Vienna, Virginia  22182

Attn:  Nancy B. Richards

Facsimile:  (703) 902-9245

 

 

	
   

  	
  CHANG HWA COMMERCIAL BANK, LTD.,

  NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Ming-Hsien Lin

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Ming-Hsien Lin

  	
   

  
	
   

  	
  Title:

  	
   

  	
  SVP & General Manager

  	
   

  
							

 

Chang Hwa Commercial Bank,

Ltd., New York Branch

685 Third Avenue, 29th Floor

New York, New York  10017

Attn:  Han Li

Facsimile:  (212) 651-9785

 

 

	
   

  	
  CITICORP NORTH AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   David Bouton

  	
   

  
	
   

  	
  Name:

  	
   

  	
   David Bouton

  	
   

  
	
   

  	
  Title:

  	
   

  	
   Vice President

  	
   

  
							

 

Citicorp North America, Inc.

390 Greenwich Street, 1st Floor

New York, New York  10013

Attn:  Blake R. Gronich

Facsimile:  (212) 723-8547

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Thomas Nastarowicz

  	
   

  
	
   

  	
  Name:

  	
   

  	
   Thomas Nastarowicz

  	
   

  
	
   

  	
  Title:

  	
   

  	
   Vice President

  	
   

  
							

 

PNC Bank, National Association

Two Tower Center Blvd.

18th Floor

East Brunswick, New Jersey 
08816

Attn:  Thomas Nastarowicz

 

 

	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Winslowe Ogbourne

  	
   

  
	
   

  	
  Name:

  	
   

  	
   Winslowe Ogbourne

  	
   

  
	
   

  	
  Title:

  	
   

  	
   Associate Director Banking
  Products

  	
   

  
	
   

  	
  Services, US

  	
   

  
							

 

 

	
   

  	
  By:

  	
  /s/

  	
   Doris Mesa

  	
   

  
	
   

  	
  Name:

  	
   

  	
   Doris Mesa

  	
   

  
	
   

  	
  Title:

  	
   

  	
   Associate Director Banking
  Products

  	
   

  
	
   

  	
  Services, US

  	
   

  
							

 

UBS Loan Finance LLC

677 Washington Blvd, 6th Floor South

Stamford, Connecticut  06901

Attn:  Christopher Aitkin

Facsimile:  (203) 719-3888

 

 

	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   David M. Blackman

  	
   

  
	
   

  	
  Name:

  	
   

  	
  David M. Blackman

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Director

  	
   

  
							

 

Wachovia Bank, National Association

301 South College Street

Charlotte, North Carolina 
28288-0172

Facsimile:  (704) 383-6205

 

 

	
   

  	
  COMPASS BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Luke Nolan

  	
   

  
	
   

  	
  Name:

  	
   

  	
   Luke Nolan

  	
   

  
	
   

  	
  Title:

  	
   

  	
   Vice President

  	
   

  
							

 

Compass Bank

8080 North Central Expressway, #370

Dallas, Texas  75202

Attn:  Luke Nolan

Facsimile:  (214) 890-8668

 

 

	
   

  	
  CHEVY CHASE BANK, F.S.B.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Sadhvi K. Subramanian

  	
   

  
	
   

  	
  Name:

  	
   

  	
   Sadhvi K. Subramanian

  	
   

  
	
   

  	
  Title:

  	
   

  	
   Vice President

  	
   

  
							

 

Chevy Chase Bank, F.S.B.

7501 Wisconsin Avenue, 12th Floor

Bethesda, Maryland  20814

Attn:  Sadhvi K. Subramanian

Facsimile:  (240) 497-7714

 

 

	
   

  	
  CITIZENS BANK OF RHODE ISLAND

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Craig E. Schermerhorn

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Craig E. Schermerhorn

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
							

 

Citizens Bank of Rhode Island

One Citizens Plaza (RC 0440)

Providence, Rhode Island  02903

Attn:  Craig E. Schermerhorn

Facsimile:  (401) 282-4485

 

 

	
   

  	
  FIRST HORIZON BANK, A DIVISION OF FIRST

  TENNESSEE BANK, NA

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   J. Jordan O’Neill, III

  	
   

  
	
   

  	
  Name:

  	
   

  	
  J. Jordan O’Neill, III

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President

  	
   

  
							

 

First Horizon Bank, a Division of

First Tennessee Bank, NA

1650 Tysons Blvd., #1150

McLean, Virginia  22102

Attn:  J. Jordan O’Neill, III

Facsimile:  (703) 734-1834

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