Document:

REGISTRATION RIGHTS AGREEMENT 

THIS REGISTRATION RIGHTS AGREEMENT, dated as of the
26th day of March, 2004, between C&H CAPITAL, INC.  a corporation organized and existing under the laws of the State of Georgia, or assigns, ("Holder"), and FIELDPOINT PETROLEUM CORPORATION, a corporation organized and existing under the laws of the State of Colorado (the "Company").

                WHEREAS, simultaneously with the execution and delivery of this Agreement, the Holder is purchasing from the Company, pursuant to a Securities Purchase Agreement dated the date hereof (the "Purchase Agreement"), 100,000 shares of the Company's Common Stock (the "Common Shares"), and Class A, B, C, D and E Warrants exercisable to purchase up to 500,000 additional shares of the Company's Common Stock (terms not defined herein shall have the meanings ascribed to them in the Purchase Agreement); and

                WHEREAS, the Company desires to grant to the Holder the registration rights set forth herein with respect to the shares of Common Stock issued pursuant to the Purchase Agreement and issuable upon exercise of the Warrants (the "Warrant Shares") (hereinafter the Common Shares and the Warrant Shares shall be referred to collectively as the " Securities" of the Company).  

                NOW, THEREFORE, the parties hereto mutually agree as follows:

                Section 1.  Registrable Securities.  As used herein the term "Registrable Security" means the Securities until (i) the Registration Statement has been declared effective by the SEC, and all Securities have been disposed of pursuant to the Registration Statement, (ii) all Securities have been sold under circumstances under which all of the applicable conditions of Rule 144 (or any similar provision then in force) under the Securities Act ("Rule 144") are met, (iii) all Securities have been otherwise transferred to holders who may trade such Securities without restriction under the Securities Act, and the Company has delivered a new certificate or other evidence of ownership for such Securities not bearing a restrictive legend or (iv) such time as, in the opinion of counsel to the Company, all Securities may be sold without any time, volume or manner limitations pursuant to Rule 144(k) (or any similar provision then in effect) under the Securities Act. The term "Registrable Securities" means any and/or all of the securities falling within the foregoing definition of a "Registrable Security."  In the event of any merger, reorganization, consolidation, recapitalization or other change in corporate structure affecting the Common Stock, such adjustment shall be deemed to be made in the definition of "Registrable Security" as is appropriate in order to prevent any dilution or enlargement of the rights granted pursuant to this Agreement.

                Section 2.  Restrictions on Transfer.  The Holder acknowledges and understands that prior to the registration of the Securities as provided herein, the Securities are "restricted securities" as defined in Rule 144 promulgated under the Act.  The Holder understands that no disposition or transfer of the Securities may be made by Holder in the absence of (i) an opinion of counsel to the Holder that such transfer may be made without registration under the Securities Act or (ii) such registration.

                            With a view to making available to the Holder the benefits of Rule 144 under the Securities Act or any other similar rule or regulation of the SEC that may at any time permit the Holder to sell securities of the Company to the public without registration ("Rule 144"), the Company agrees to:

                             (a)       
comply with the provisions of paragraph (c)(1) of Rule 144; and

                            
(b)        file with the SEC in a timely manner all reports and other documents required to be filed by the Company pursuant to Section 13 or 15(d) under the Exchange Act; and, if at any time it is not required to file such reports but in the past had been required to or did file such reports, it will, upon the request of any Holder, make available other information as required by, and so long as necessary to permit sales of, its Registrable Securities pursuant to Rule 144.

                Section 3.  Registration Rights With Respect to the Securities.

                             (a)
       The Company agrees that it will exercise reasonable efforts to prepare and file with the Securities and Exchange Commission ("SEC") a registration statement (on Form S-2 or SB-2, or other appropriate registration statement) under the Securities Act (the "Registration Statement"), at the sole expense of the Company (except as provided in Section 3(c) hereof), in respect of all holders of Securities, so as to permit a public offering and resale of the Securities under the Act. Such Registration Statement shall be filed within 180 days following the Closing Date (the "Initial Filing Date") except as provide by Section 3(f) hereof.

           
                            The Company shall use its best efforts to cause the Registration Statement to become effective within 120 days from the Initial Filing Date, or, if earlier, within five (5) days of SEC clearance to request acceleration of effectiveness.  The number of shares designated in the Registration Statement to be registered shall include the Common Shares and the Warrant Shares and shall include appropriate language regarding reliance upon Rule 416 to the extent permitted by the SEC.  The Company will notify Holder of the effectiveness of the Registration Statement within one Trading Day of such event.

                            (b)        The Company will maintain the Registration Statement or post-effective amendment filed under this Section 3 hereof effective under the Securities Act until the earlier of (i) the date that none of the Securities are or may become issued and outstanding, (ii) the date that all of the Securities have been sold pursuant to the Registration Statement, (iii) the date the holders thereof receive an opinion of counsel to the Company, which counsel shall be reasonably acceptable to the Holder, that the Securities may be sold under the provisions of Rule 144 without limitation as to volume, (iv) all Securities have been otherwise transferred to holders who may trade such shares without restriction under the Securities Act, and the Company has delivered a new certificate or other evidence of ownership for such securities not bearing a restrictive legend, or (v) all Securities may be sold without any time, volume or manner limitations pursuant to Rule 144(k) or any similar provision then in effect under the Securities Act in the opinion of counsel to the Company, which counsel shall be reasonably acceptable to the Holder (the "Effectiveness Period").

                           (c)        All fees, disbursements and out-of-pocket expenses and costs incurred by the Company in connection with the preparation and filing of the Registration Statement under subparagraph 3(a) and in complying with applicable securities and Blue Sky laws (including, without limitation, all attorneys' fees of the Company) shall be borne by the Company.  The Holder shall bear the cost of underwriting and/or brokerage discounts, fees and commissions, if any, applicable to the Securities being registered and the fees and expenses of its counsel.  The Holder and its counsel shall be provided with and shall have a reasonable period, not to exceed three (3) Trading Days, to review the proposed Registration Statement or any amendment thereto, prior to filing with the SEC, and the Company shall provide each Holder with copies of any comment letters received from the SEC with respect thereto within two (2) Trading Days of receipt thereof.  The Company shall make reasonably available for inspection by each Holder, any underwriter participating in any disposition pursuant to the Registration Statement, and any attorney, accountant or other agent retained by such Holder or any such underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries, and cause the Company's officers, directors and employees to supply all information reasonably requested by such Holder or any such underwriter, attorney, accountant or agent in connection with the Registration Statement, in each case, as is customary for similar due diligence examinations; provided, however, that all records, information and documents that are designated in writing by the Company, in good faith, as confidential, proprietary or containing any material non-public information shall be kept confidential by such Holder and any such underwriter, attorney, accountant or agent (pursuant to an appropriate confidentiality agreement in the case of any such Holder or agent), unless such disclosure is made pursuant to judicial process in a court proceeding (after first giving the Company an opportunity promptly to seek a protective order or otherwise limit the scope of the information sought to be disclosed) or is required by law, or such records, information or documents become available to the public generally or through a third party not in violation of an accompanying obligation of confidentiality; and provided further that, if the foregoing inspection and information gathering would otherwise disrupt the Company's conduct of its business, such inspection and information gathering shall, to the maximum extent possible, be coordinated on behalf of the Holder and the other parties entitled thereto by one firm of counsel designated by and on behalf of the Holder and other parties.  The Company shall qualify any of the securities for sale in such states as such Holder reasonably designates and shall furnish indemnification in the manner provided in Section 6 hereof.  However, the Company shall not be required to qualify in any state which will require an escrow or other restriction relating to the Company and/or its affiliates or the sellers, or which will require the Company to qualify to do business in such state or require the Company to file therein any general consent to service of process.  The Company at its expense will supply the Holder with copies of the Registration Statement and the prospectus included therein and other related documents in such quantities as may be reasonably requested by the Holder.

                            (d)        The Company shall not be required by this Section 3 to include the Holder's Securities in any Registration Statement which is to be filed if, in the opinion of counsel for both the Holder and the Company (or, should they not agree, in the opinion of another counsel experienced in securities law matters acceptable to counsel for the Holder and the Company) the proposed offering or other transfer as to which such registration is requested is exempt from applicable federal and state securities laws and would result in all purchasers or transferees obtaining securities which are not "restricted securities", as defined in Rule 144 under the Securities Act. 

                            (e)        No provision contained herein shall preclude the Company from selling securities pursuant to any Registration Statement in which it is required to include Securities pursuant to this Section 3. It is the understanding of the Holder that the Company may undertake a firm commitment underwritten public offering (the "Public Offering"). In the event that the registration statement for the Public Offering is filed on or before the Initial Filing Date (which may be extended to no later than thirty (30) days by the managing underwriter of the Public Offering), then Holder agrees that in lieu of the Registration Statement required by this Agreement, the Company may include Holder's Registrable Securities as a selling securityholder in the Public Offering registration statement, but not as part of the underwritten offering. The Public Offering registration statement will be kept effective (at least as to Holder's Registrable Securities) for the period otherwise required herein. Holder shall agree to such "lockup" as may be required by the underwriters of the Public Offering, provided that under no circumstances shall Holder be required to agree to any lockup of more than 75% of its Registrable Securities (allocated proportionately among the Common Shares and Warrant Shares), and as to such locked-up Registrable Securities, such lock-up shall not exceed 180 days from the effective date of the Public Offering registration statement. If the Public Offering is abandoned, or the underwriters of the Public Offering require a lock-up from Holder which is more severe than that set forth above, then the Company shall again be obligated to file the Registration Statement called for by this Agreement for Holder's benefit, and shall so file within 15 business days of such event. 

                            (f)        If at any time or from time to time after the effective date of the Registration Statement, the Company notifies the Holder in writing of the existence of a Potential Material Event (as defined in Section 3(g) below), the Holder shall not offer or sell any Securities or engage in any other transaction involving or relating to Securities, from the time of the giving of notice with respect to a Potential Material Event until such Holder receives written notice from the Company that such Potential Material Event either has been disclosed to the public or no longer constitutes a Potential Material Event; provided, however, that the Company may not so suspend the right to such holders of Securities for more than twenty (20) days in the aggregate (or such greater period, not to exceed 90 days in the aggregate, as may be required to prepare and file audited financial statements of a company or business acquired) during any twelve month period,  during the periods the Registration Statement is required to be in effect.  If a Potential Material Event shall occur prior to the date the Registration Statement is filed, then the Company's obligation to file the Registration Statement shall be delayed without penalty for not more than twenty (20) days (or such greater period, not to exceed 90 days in the aggregate, as may be required to prepare and file audited financial statements of a company or business acquired).  The Company must give Holder notice in writing at least two (2) Trading Days prior to the first day of the blackout period. 

                            (g)        "Potential Material Event" means any of the following: (a) the possession by the Company of material information not ripe for disclosure in a registration statement, as determined in good faith by the Chief Executive Officer or the Board of Directors of the Company that disclosure of such information in the Registration Statement would be detrimental to the business and affairs of the Company; or (b) any material engagement or activity by the Company which would, in the good faith determination of the Chief Executive Officer or the Board of Directors of the Company, be adversely affected by disclosure in a registration statement at such time, which determination shall be accompanied by a good faith determination by the Chief Executive Officer or the Board of Directors of the Company that the Registration Statement would be materially misleading absent the inclusion of such information.

                Section 4.      
Cooperation with Company.  Holder will cooperate with the Company in all respects in connection with this Agreement, including timely supplying all information reasonably requested by the Company (which shall include all information regarding the Holder and proposed manner of sale of the Registrable Securities required to be disclosed in the Registration Statement) and executing and returning all documents reasonably requested in connection with the registration and sale of the Registrable Securities and entering into and performing its obligations under any underwriting agreement, if the offering is an underwritten offering, in usual and customary form, with the managing underwriter or underwriters of such underwritten offering.  Nothing in this Agreement shall obligate the Holder to consent to be named as an underwriter in the Registration Statement.  The obligation of the Company to register the Registrable Securities shall be absolute and unconditional as to those Securities which the SEC will permit to be registered without naming the Holder as an underwriter.

                Section 5.      
Registration Procedures.     If and whenever the Company is required by any of the provisions of this Agreement to effect the registration of any of the Registrable Securities under the Act, the Company shall (except as otherwise provided in this Agreement), as expeditiously as possible, subject to the Holder's assistance and cooperation as reasonably required:

             
                         (a)        (i)        prepare and file with the SEC such amendments and supplements to the Registration Statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Act with respect to the sale or other disposition of all securities covered by such registration statement whenever the Holder of such Registrable Securities shall desire to sell or otherwise dispose of the same (including prospectus supplements with respect to the sales of securities from time to time in connection with a registration statement pursuant to Rule 415 promulgated under the Act) and (ii) take all lawful action such that each of (A) the Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, not misleading and (B) the Prospectus forming part of the Registration Statement, and any amendment or supplement thereto, does not at any time during the Registration Period include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

             
                         (b)        (i)        prior to the filing with the SEC of any Registration Statement (including any amendments thereto) and the distribution or delivery of any prospectus (including any supplements thereto), provide draft copies thereof to the Holder and reflect in such documents all such comments as the Holder (and its counsel) reasonably may propose respecting the Selling Shareholders and Plan of Distribution sections (or equivalents) and (ii) furnish to each Holder such numbers of copies of a prospectus including a preliminary prospectus or any amendment or supplement to any prospectus, as applicable, in conformity with the requirements of the Act, and such other documents, as Holder may reasonably request in order to facilitate the public sale or other disposition of the securities owned by such Holder;

             
                         (c)        register and qualify the Registrable Securities covered by the Registration Statement under such other securities or blue sky laws of such jurisdictions as the Holder shall reasonably request (subject to the limitations set forth in Section 3(d) above), and do any and all other acts and things which may be necessary or advisable to enable Holder to consummate the public sale or other disposition in such jurisdiction of the securities owned by Holder, except that the Company shall not for any such purpose be required to qualify to do business as a foreign corporation in any jurisdiction wherein it is not so qualified or to file therein any general consent to service of process;

             
                         (d)        list such Registrable Securities on the OTC Bulletin Board, if required,  or the American Stock Exchange, other national securities exchange, the NASDAQ National Market or the NASDAQ Small-Cap Market, on which the Common Stock of the Company is then listed, if the listing of such Registrable Securities is then permitted under the rules of such exchange or NASDAQ;

              
                         (e)        notify each Holder of Registrable Securities covered by the Registration Statement, at any time when a prospectus relating thereto covered by the Registration Statement is required to be delivered under the Act, of the happening of any event of which it has knowledge as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of  the circumstances then existing, and the Company shall prepare and file a curative amendment under Section 5(a) as quickly as commercially possible;

             
                        (f)        as promptly as practicable after becoming aware of such event, notify each Holder who holds Registrable Securities being sold (or, in the event of an underwritten offering, the managing underwriters) of the issuance by the SEC of any stop order or other suspension of the effectiveness of the Registration Statement at the earliest possible time and take all lawful action to effect the withdrawal, recession or removal of such stop order or other suspension;

            
                         (g)        cooperate with the Holder to facilitate the timely preparation and delivery of certificates for the Registrable Securities to be offered pursuant to the Registration Statement and enable such certificates for the Registrable Securities to be in such denominations or amounts, as the case may be, as the Holder reasonably may request and registered in such names as the Holder may request; and, within three Trading Days after a Registration Statement which includes Registrable Securities is declared effective by the SEC, deliver and cause legal counsel selected by the Company to deliver to the transfer agent for the Registrable Securities (with copies to the Holder whose Registrable Securities are included in such Registration Statement) an appropriate instruction and, to the extent necessary, an opinion of such counsel;

            
                        (h)        take all such other lawful actions reasonably necessary to expedite and facilitate the disposition by the Holder of their Registrable Securities in accordance with the intended methods therefor provided in the prospectus which are customary for issuers to perform under the circumstances;

            
                        (i)        in the event of an underwritten offering, promptly include or incorporate in a Prospectus supplement or post-effective amendment to the Registration Statement such information as the managers reasonably agree should be included therein and to which the Company does not reasonably object and make all required filings of such Prospectus supplement or post-effective amendment as soon as practicable after it is notified of the matters to be included or incorporated in such Prospectus supplement or post-effective amendment; and

            
                         (j)        maintain a transfer agent and registrar for its Common Stock.

                Section 6.     
Lock-up.         Unless otherwise consented to in writing by the Company, each Holder agrees not to not sell, transfer or otherwise dispose of more than 25% of all of the Common Shares and Warrant Shares owned by such Holder during any 90 day period, (determined as a moving window and not as consecutive non-overlapping intervals) following the effective date of such Registration Statement. The restrictions on transfer contained in this Section 6 shall terminate with respect to the Common Shares and Warrant Shares one (1) year from the effective date of the Registration Statement and shall terminate sooner with respect to the Warrant Shares underlying the s A Warrants in the event the Company exercises its right to redeem the Warrants prior to such termination date.  

                Section 7.     
Indemnification.

             
                         (a)        The Company agrees to indemnify and hold harmless each Holder and each person, if
any, who controls such Holder within the meaning of the Securities Act ("Distributing Holder") against any losses, claims, damages or liabilities, joint or several (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys' fees), to which the Distributing Holder may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, or any related preliminary prospectus, final prospectus or amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration  Statement, preliminary prospectus, final prospectus or amendment  or supplement thereto in reliance upon, and in conformity with, written information furnished to the Company by the Distributing Holder, specifically for use in the preparation thereof. This Section 7(a) shall not inure to the benefit of any Distributing Holder with respect to any person asserting such loss, claim, damage or liability who purchased the Registrable Securities which are the subject thereof if the Distributing Holder failed to send or give (in violation of the Securities Act or the rules and regulations promulgated thereunder) a copy of the prospectus contained in such Registration Statement to such person at or prior to the written confirmation to such person of the sale of such Registrable Securities, where the Distributing Holder was obligated to do so under the Securities Act or the rules and regulations promulgated thereunder.  This indemnity agreement will be in addition to any liability which the Company may otherwise have.

             
                         (b)        Each Distributing Holder agrees that it will indemnify and hold harmless the Company, and each officer, director of the Company or person, if any, who controls the Company within the meaning of the Securities Act, against any losses, claims, damages or liabilities (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys' fees) to which the Company or any such officer, director or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, or any related preliminary prospectus, final prospectus or amendment or supplement thereto, or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, preliminary prospectus, final prospectus or amendment or supplement thereto in reliance upon, and in conformity with, written information furnished to the Company by such Distributing Holder, specifically for use in the preparation thereof. This indemnity agreement will be in addition to any liability which the Distributing Holder may otherwise have.

             
                         (c)        Promptly after receipt by an indemnified party under this Section 6 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 7, notify the indemnifying party of the commencement thereof; but the omission so to notify the indemnifying party will not relieve the indemnifying party from any liability which it may have to any indemnified party except to the extent of actual prejudice demonstrated by the indemnifying party.  In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate in, and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, assume the defense thereof, subject to the provisions herein stated and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section 7 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation, unless the indemnifying party shall not pursue the action to its final conclusion.  The indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of the indemnifying party if the indemnifying party has assumed the defense of the action with counsel reasonably satisfactory to the indemnified party; provided that if the indemnified party is the Distributing Holder, the fees and expenses of such counsel shall be at the expense of the indemnifying party if (i) the employment of such counsel has been specifically authorized in writing by the indemnifying party, or (ii) the named parties to any such action (including any impleaded parties) include both the Distributing Holder and the indemnifying party and the Distributing Holder shall have been advised by such counsel that there may be one or more legal defenses available to the indemnifying party different from or in conflict with any legal defenses which may be available to the Distributing Holder (in which case the indemnifying party shall not have the right to assume the defense of such action on behalf of the Distributing Holder, it being understood, however, that the indemnifying party shall, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable only for the reasonable fees and expenses of one separate firm of attorneys for the Distributing Holder, which firm shall be designated in writing by the Distributing Holder).  No settlement of any action against an indemnified party shall be made without the prior written consent of the indemnified party, which consent shall not be unreasonably withheld.

                Section 8.     
Contribution.  In order to provide for just and equitable contribution under the Securities Act in any case in which (i) the indemnified party makes a claim for indemnification pursuant to Section 8 hereof but is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that the express provisions of Section 7 hereof provide for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any indemnified party, then the Company and the applicable Distributing Holder shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys' fees), in either such case (after contribution from others) on the basis of relative fault as well as any other relevant equitable considerations.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the applicable Distributing Holder on the other hand, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.   The Company and the Distributing Holder agree that it would not be just and equitable if contribution pursuant to this Section 8 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 8.  The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 8 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

             
                         Notwithstanding any other provision of this Section 8, in no event shall any (i) Holder be required to undertake liability to any person under this Section 8 for any amounts in excess of the dollar amount of the proceeds to be received by such Holder from the sale of such Holder's Registrable Securities (after deducting any fees, discounts and commissions applicable thereto) pursuant to any Registration Statement under which such Registrable Securities are to be registered under the Securities Act and (ii) underwriter be required to undertake liability to any person hereunder for any amounts in excess of the aggregate discount, commission or other compensation payable to such underwriter with respect to the Registrable Securities underwritten by it and distributed pursuant to the Registration Statement.

                Section 9.        Notices.  All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a Trading Day during normal business hours where such notice is to be received), or the first Trading Day following such delivery (if delivered other than on a Trading Day during normal business hours where such notice is to be received) or (b) on the second Trading Day following the date of mailing by reputable courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:

		
If to the Company:
	
FIELDPOINT PETROLEUM CORPORATION

ATTN:  Ray Reaves, Chief Executive Officer

1703 Edelweiss Drive

Cedar Park, Texas  78613

Telephone: (512) 250-8692

Fax No. (512) 335-1294

		
  	
  
	 	
with a copy to:
	
Clifford L. Neuman, Esq.

(shall not constitute notice)

Temple-Bowron House

1507 Pine Street

Boulder, CO 80302

Telephone:  (303) 449-2100

Fax:  (303) 449-1045

		
  	
  
	 	
If to the Investor: 
	
C&H Capital, Inc.

6585 Sterling Drive

Suwanee, Georgia 30024

Telephone: (678) 570-6791

Fax:

		
  	
	 	
with a copy to:
	 (shall not constitute notice)

  Telephone:

  Fax:

Either party hereto may from time to time change its address or facsimile number for notices under this Section 8 by giving at least ten (10) days' prior written notice of such changed address or facsimile number to the other party hereto.

                Section 10.     
Assignment.  This Agreement is binding upon and inures to the benefit of the parties hereto and their respective heirs, successors and permitted assigns. The rights granted the Holder under this Agreement may be assigned to any purchaser of substantially all of the Registrable Securities (or the rights thereto) from Holder, as otherwise permitted by the Purchase Agreement.  In the event of a transfer of the rights granted under this Agreement, the Holder agrees that the Company may require that the transferee comply with reasonable conditions as determined in the discretion of the Company.   

                Section 11.     
Additional Covenants of the Company.  The Company agrees that at such time as it meets all the requirements for the use of Securities Act Registration Statement on Form S-3 it shall file all reports and information required to be filed by it with the SEC in a timely manner and take all such other action so as to maintain such eligibility for the use of such form.

                Section 12.     
Counterparts/Facsimile.  This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when together shall constitute but one and the same instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other party.  In lieu of the original, a facsimile transmission or copy of the original shall be as effective and enforceable as the original.

                Section 13.     
Remedies.  The remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by law.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

                Section 14.     
Conflicting Agreements.  The Company shall not enter into any agreement with respect to its securities that is inconsistent with the rights granted to the holders of Registrable Securities in this Agreement or otherwise prevents the Company from complying with all of its obligations hereunder.

                Section 15.     
Headings.  The headings in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

                Section 16.     
Governing Law, Arbitration.  This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado applicable to contracts made in Colorado by persons domiciled in Colorado and without regard to its principles of conflicts of laws.  Any dispute under this Agreement shall be submitted to arbitration under the American Arbitration Association (the "AAA") in Boulder, Colorado, and shall be finally and conclusively determined by the decision of a board of arbitration consisting of three (3) members (hereinafter referred to as the "Board of Arbitration") selected as according to the rules governing the AAA.  The Board of Arbitration shall meet on consecutive Trading Days in Boulder, Colorado, and shall reach and render a decision in writing (concurred in by a majority of the members of the Board of Arbitration) with respect to the amount, if any, which the losing party is required to pay to the other party in respect of a claim filed.  In connection with rendering its decisions, the Board of Arbitration shall adopt and follow the laws of the State of Illinois.  To the extent practical, decisions of the Board of Arbitration shall be rendered no more than thirty (30) calendar days following commencement of proceedings with respect thereto. The Board of Arbitration shall cause its written decision to be delivered to all parties involved in the dispute.  Any decision made by the Board of Arbitration (either prior to or after the expiration of such thirty (30) calendar day period) shall be final, binding and conclusive on the parties to the dispute, and entitled to be enforced to the fullest extent permitted by law and entered in any court of competent jurisdiction.  The non-prevailing party to any arbitration (as determined by the Board of Arbitration) shall pay the expenses of the prevailing party, including reasonable attorneys' fees, in connection with such arbitration.

                Section 17.     
Severability.  If any provision of this Agreement shall for any reason be held invalid or unenforceable, such invalidity or unenforceablity shall not affect any other provision hereof and this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 

                Section 18.     
Capitalized Terms.  All capitalized terms not otherwise defined herein shall have the meaning assigned to them in the Purchase Agreement.

                IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, on the day and year first above written.

	 	 	
Fieldpoint Petroleum Corporation

	 	 	 
	 	 	
By:/s/ Ray
Reaves                                      

     Ray Reaves, Chief Executive Officer

	 	 	 
	 	 	
C&H Capital, Inc.,

	 	 	 
	 	 	
By:/s/ Jason Assad                                      

     Jason Assad, Presidentexv10w1

 

Exhibit 10.1

 

 

$1,500,000,000

TERM LOAN AGREEMENT

Dated as of September 15, 2005

among

PROLOGIS,

as Borrower,

BANK OF AMERICA, N.A.,

as Administrative Agent

and a Lender,

CITICORP NORTH AMERICA, INC.

as a Lender,

JPMORGAN CHASE BANK, N.A.,

as a Lender,

and

The Other Lenders Party Hereto

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION	 	PAGE
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	1.1 Defined Terms
	 	 	1	 
	1.2 Interpretive Provisions
	 	 	27	 
	1.3 Accounting Terms
	 	 	28	 
	1.4 Rounding
	 	 	28	 
	1.5 Times of Day
	 	 	29	 
	ARTICLE II THE TERM LOAN COMMITMENTS AND THE TERM LOANS
	 	 	29	 
	2.1 Term Loans
	 	 	29	 
	2.2 Conversions and Continuations
	 	 	30	 
	2.3 Prepayments and Commitment Reductions
	 	 	31	 
	2.4 Repayment of Term Loans
	 	 	32	 
	2.5 Interest and Principal Payments
	 	 	32	 
	2.6 Fees
	 	 	33	 
	2.7 Computation of Interest and Fees
	 	 	33	 
	2.8 Evidence of Debt
	 	 	33	 
	2.9 Payments Generally; Administrative Agent’s Clawback
	 	 	34	 
	2.10 Sharing of Payments by Lenders
	 	 	35	 
	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	35	 
	3.1 Taxes
	 	 	35	 
	3.2 Illegality
	 	 	38	 
	3.3 Inability to Determine Rates
	 	 	39	 
	3.4 Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	39	 
	3.5 Compensation for Losses
	 	 	40	 
	3.6 Mitigation Obligations; Replacement of Lenders
	 	 	41	 
	3.7 Survival
	 	 	42	 
	ARTICLE IV CONDITIONS PRECEDENT TO THE TERM LOANS
	 	 	42	 
	4.2 Conditions to all Term Loans
	 	 	44	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	44	 
	5.1 Existence, Qualification and Power; Compliance with Laws
	 	 	44	 
	5.2 Authorization; No Contravention
	 	 	45	 
	5.3 Governmental Authorization; Other Consents
	 	 	45	 
	5.4 Binding Effect
	 	 	45	 
	5.5 Financial Statements
	 	 	45	 
	5.6 Litigation
	 	 	45	 
	5.7 No Default
	 	 	46	 
	5.8 Ownership of Property; Liens
	 	 	46	 
	5.9 Environmental Compliance
	 	 	46	 
	5.10 Insurance
	 	 	46	 
	5.11 Taxes
	 	 	46	 
	5.12 Pension Law Compliance
	 	 	47	 
	5.13 Margin Regulations; Investment Company Act; Public Utility Holding Company Act
	 	 	47	 
	5.14 Disclosure
	 	 	48	 
	5.15 Compliance with Laws
	 	 	48	 
	5.16 Solvency
	 	 	48	 
	5.17 Exemption from ERISA; Plan Assets
	 	 	48	 
	ARTICLE VI AFFIRMATIVE COVENANTS
	 	 	48	 
	6.1 Financial Statements
	 	 	48	 
	6.2 Certificates; Other Information
	 	 	49	 

i

 

	 	 	 	 	 
	SECTION	 	PAGE
	6.3 Notices
	 	 	51	 
	6.4 Payment of Obligations
	 	 	51	 
	6.5 Preservation of Existence, Etc
	 	 	51	 
	6.6 Maintenance of Properties
	 	 	52	 
	6.7 Maintenance of Insurance
	 	 	52	 
	6.8 Compliance with Laws
	 	 	52	 
	6.9 Books and Records
	 	 	52	 
	6.10 Inspection Rights
	 	 	52	 
	6.11 Use of Proceeds
	 	 	53	 
	6.12 REIT Status
	 	 	53	 
	ARTICLE VII NEGATIVE COVENANTS
	 	 	53	 
	7.1 Investments
	 	 	53	 
	7.2 Secured Indebtedness
	 	 	53	 
	7.3 Fundamental Changes
	 	 	53	 
	7.4 Dispositions
	 	 	53	 
	7.5 Restricted Payments
	 	 	54	 
	7.6 Change in Nature of Business
	 	 	55	 
	7.7 Transactions with Affiliates
	 	 	55	 
	7.8 Negative Pledge Agreements; Burdensome Agreements
	 	 	55	 
	7.9 Use of Proceeds
	 	 	56	 
	7.10 Financial Covenants
	 	 	56	 
	ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES
	 	 	56	 
	8.1 Events of Default
	 	 	56	 
	8.2 Remedies Upon Event of Default
	 	 	59	 
	8.3 Application of Funds
	 	 	59	 
	ARTICLE IX ADMINISTRATIVE AGENT
	 	 	60	 
	9.1 Appointment and Authority
	 	 	60	 
	9.2 Rights as a Lender
	 	 	60	 
	9.3 Exculpatory Provisions
	 	 	60	 
	9.4 Reliance by Administrative Agent
	 	 	61	 
	9.5 Delegation of Duties
	 	 	62	 
	9.6 Resignation of Administrative Agent
	 	 	62	 
	9.7 Non-Reliance on Administrative Agent and Other Lenders
	 	 	62	 
	9.8 Administrative Agent May File Proofs of Claim
	 	 	63	 
	ARTICLE X MISCELLANEOUS
	 	 	63	 
	10.1 Amendments, Etc
	 	 	63	 
	10.2 Notices; Effectiveness; Electronic Communication
	 	 	64	 
	10.3 No Waiver; Cumulative Remedies
	 	 	66	 
	10.4 Expenses; Indemnity; Damage Waiver
	 	 	67	 
	10.5 Payments Set Aside
	 	 	68	 
	10.6 Successors and Assigns
	 	 	69	 
	10.7 Treatment of Certain Information; Confidentiality
	 	 	72	 
	10.8 Right of Setoff
	 	 	72	 
	10.9 Interest Rate Limitation
	 	 	73	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	73	 
	10.11 Severability
	 	 	73	 
	10.12 Replacement of Lenders
	 	 	74	 
	10.13 GOVERNING LAW; JURISDICTION; ETC
	 	 	74	 
	10.14 Waiver of Jury Trial
	 	 	75	 
	10.15 USA PATRIOT ACT NOTICE
	 	 	75	 
	10.16 Time of the Essence
	 	 	76	 
	10.17 ENTIRE AGREEMENT
	 	 	76	 

ii

 

	 	 	 	 	 	 	 
	SCHEDULES	 	 
	 

	 	2.1	 	 	Term Loan Commitments and Applicable Percentages
	 

	 	5.6	 	 	Litigation
	 

	 	5.9	 	 	Environmental Matters
	 

	 	10.2	 	 	Administrative Agent’s Office; Certain Addresses for Notices
	 

	 	10.6	 	 	Processing and Recordation Fees
	 
	 	 	 	 	 	 
	EXHIBITS	 	 
	 

	 	 	 	 	 	Form of
	 

	 	A-1	 	 	Funding Notice
	 

	 	A-2	 	 	Loan Notice
	 

	 	B	 	 	Note
	 

	 	C	 	 	Compliance Certificate
	 

	 	D	 	 	Assignment and Assumption
	 

	 	E	 	 	Opinion

iii

 

TERM LOAN AGREEMENT

     This TERM LOAN AGREEMENT is entered into as of September 15, 2005, among PROLOGIS, a Maryland
real estate investment trust (“Borrower”), each lender from time to time party hereto
(collectively, the “Lenders,” and each individually, a “Lender”), and BANK OF
AMERICA, N.A., as Administrative Agent and a Lender.

     Borrower has requested that Lenders provide a multiple-advance term loan to finance the
Catellus Acquisition (as defined below), and Lenders are willing to do so on the terms and
conditions set forth herein.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

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

     “Acquired Properties” means Properties described in clause (a)(iii) of the
definition of Total Asset Value.

     “Actual Capital Expenditures” means, for any period, all expenditures by the Companies
that are properly classified as a capital asset for tenant improvements, capitalized lease
commissions on previously leased space, and recurring capital expenditures relating to any
Property, in each case as reported in Borrower’s “Consolidated Condensed Statements of Cash Flows”
in its financial statements filed with the SEC.

     “Adjusted EBITDA” means, for the Companies, on a consolidated basis, for any period,
net earnings before Restricted Payments with respect to preferred Equity Interests determined in
accordance with GAAP plus (minus):

     (a) Extraordinary losses (extraordinary gains) determined in accordance with
GAAP and reflected in the determination of net earnings;

     (b) Losses (gains) from the Disposition or write-down of Properties that are
not classified as: (i) “Gains (losses) on dispositions of CDFS business assets”
(which includes Dispositions of CDFS Properties to Property Funds, Dispositions of
CDFS Properties to third parties under build-to-suit contracts and Dispositions of
land); (ii) “Discontinued operations – CDFS business assets” (which includes
Dispositions of CDFS Properties to third parties); or (iii) “Gains (losses) on
dispositions of investments in Property Funds;”

     (c) Losses (gains) resulting from certain foreign currency exchange effects of
settlement of intercompany Indebtedness and mark-to-market adjustments

1

 

associated with intercompany Indebtedness between Borrower and its Consolidated
Subsidiaries and its Unconsolidated Affiliates (as disclosed publicly in Borrower’s
quarterly earnings reports to investors in the “Reconciliation of Net Earnings
(Loss) to Funds From Operations”);

     (d) Losses (gains) resulting from foreign currency effects from the
remeasurement of certain third party Indebtedness of Borrower’s foreign Consolidated
Subsidiaries and its foreign Unconsolidated Affiliates (as disclosed publicly in
Borrower’s quarterly earnings reports to investors in the “Reconciliation of Net
Earnings (Loss) to Funds From Operations”);

     (e) Losses (gains) associated with mark-to-market adjustments to foreign
exchange Swap Contracts;

     (f) Amortization of above market lease value from the purchase accounting
impact of any corporate or portfolio acquisitions (Financial Accounting Standards
Board Statement No. 141 adjustments);

     (g) Mark-to-market amortization of Indebtedness arising from the purchase
accounting impact of corporate acquisitions; and

     (h) Losses (gains) from early extinguishment of Indebtedness;

     plus all amounts deducted in calculating net earnings in accordance with GAAP, for
Interest Expense, deferred income taxes, depreciation and amortization.

     For purposes of calculating the Fixed Charge Coverage Ratio and the Unencumbered Debt Service
Coverage Ratio, Adjusted EBITDA shall be increased by the amount of any operating lease payments
related to transactions in which such Person or an Affiliate of such Person leases, as lessee, any
Property or other assets that it owned and sold, transferred, or otherwise Disposed of to the
lessor (or a predecessor in interest to the lessor). Notwithstanding the above, (i) write-downs
and impairment charges incurred on or before December 31, 2004, (ii) gains or losses and impairment
charges associated with the disposition of Refrigerated Warehouse Properties and technology
Investments, and (iii) impairment charges resulting from mark-to-market adjustments of Properties
in Unconsolidated Affiliates shall be added back to (in the case of write-downs, impairment
charges, and losses) or deducted from (in the case of gains) EBITDA to the extent deducted (added)
in the calculation of Adjusted EBITDA.

     “Administrative Agent” means Bank of America, in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.2, or such other address or account as
Administrative Agent may from time to time provide to Borrower and Lenders.

 

2

 

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

     “Advance Date” means the date on which an advance is made under the Term Loan
Commitments.

     “Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Agreement” means this Term Loan Agreement.

     “Applicable Margin” means, at the time of determination thereof, with respect to the
Term Loans, the percentage per annum set forth below based upon the Rating Requirement:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rating Requirement	 	Applicable Margin
	 	 	 	 	 	 	Base Rate	 	Eurodollar Rate	 	 
	Moody’s Rating	 	S&P Rating	 	Fitch Rating	 	Loans	 	Loans	 	Facility Fee
	Less than Baa3 or
	 	Less than BBB- or	 	Less than BBB- or	 	 	 	 	 	 	 	 	 	 	 	 
	not rated
	 	not rated	 	not rated	 	 	0.250	%	 	 	0.950	%	 	 	0.300	%
	Baa3
	 	BBB-	 	BBB-	 	 	0	%	 	 	0.750	%	 	 	0.250	%
	Baa2
	 	BBB	 	BBB	 	 	0	%	 	 	0.600	%	 	 	0.200	%
	Baa1
	 	BBB+	 	BBB+	 	 	0	%	 	 	0.475	%	 	 	0.150	%
	A3 or better
	 	A- or better	 	A- or better	 	 	0	%	 	 	0.450	%	 	 	0.125	%

     “Applicable Percentage” means with respect to any Lender at any time, the
percentage (carried out to the ninth decimal place) of the total Term Loan Commitments represented
by such Lender’s Term Commitment at such time. If the Term Loan Commitments have been fully
advanced hereunder or terminated pursuant to Section 8.2 or if the Availability Period has
expired, then the Applicable Percentage of such Lender shall be the percentage (carried out to the
ninth decimal place) of the Outstanding Amount held by such Lender.

     “Appraisal Properties” means Properties located in the United States for which
Borrower has a third-party appraisal that is dated within eighteen (18) months of the applicable
date of determination.

     “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.

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

 

3

 

     “Assignment and Assumption” means 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 10.6.2), and accepted by Administrative Agent, in substantially the form of
Exhibit D or any other form approved by Administrative Agent.

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Companies for the fiscal year ended December 31, 2004, and the related consolidated statements of
income or operations, shareholders’ equity and cash flows for such fiscal year of the Companies,
including the notes thereto.

     “Availability Period” means the period from the Closing Date to the earlier of (a)
September 30, 2005, and (b) the date of termination of all the Term Loan Commitments pursuant to
Section 8.2.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Base Rate” means 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 Bank of America as its “prime rate.” The “prime
rate” is a rate set by Bank of America based upon various factors including Bank of America’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 Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

     “Base Rate Loan” means a portion of a Term Loan that bears interest based on the Base
Rate.

     “Borrower” has the meaning specified in the introductory paragraph hereto.

     “Business Day” means 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 Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate
Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks in
the London interbank eurodollar market.

     “Capital Expenditures” means, for any period, an amount equal to the sum of
(a) in the case of Properties that are not Refrigerated Warehouse Properties, the greater
of (i) Actual Capital Expenditures with respect to such Properties for such period, and (ii)
the product of (A) the sum of the total square footage with respect to all
completed industrial space in all such Properties (excluding Properties where the tenant is
responsible for capital expenditures) as of the last day of each of the immediately preceding five
(5) calendar quarters, divided by five (5), and (B) $0.15, and (b) in the case of
Properties that are Refrigerated Warehouse Properties, the greater of (i) Actual Capital
Expenditures with respect to such Properties during such period, and (ii) the product of
(A) the sum of the total cubic footage with respect to all completed space in all

 

4

 

such Properties as of the last day of each of the immediately preceding five (5) calendar
quarters, divided by five (5), and (B) $0.10.

     “Capital Lease” means any capital lease or sublease that has been (or under GAAP
should be) capitalized on a balance sheet of the lessee.

     “Cash Equivalents” means (a) direct obligations of the United States of America or any
agency thereof, or obligations fully guaranteed by the United States of America or any agency
thereof, provided that such obligations mature within one (1) year of the date of
acquisition thereof, (b) commercial paper rated “A-1” (or higher) according to S&P, or “AP-1” (or
higher) according to Moody’s and maturing not more than one hundred eighty (180) days from the date
of acquisition thereof, (c) time deposits with, and certificates of deposit and bankers’
acceptances issued by any Lender or any other United States bank having capital surplus and
undivided profits aggregating at least $1,000,000,000 and (d) mutual funds whose investments are
substantially limited to the foregoing.

     “Catellus” means Catellus Development Corporation.

     “Catellus Acquisition” means the transactions contemplated by the Agreement and Plan
of Merger dated as of June 5, 2005 among Borrower, Palmtree Acquisition Corporation and Catellus.

     “CDFS” means Borrower’s corporate distribution facilities services operating segment.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any Law, (b) any change in any Law or in the
administration, interpretation or application thereof by any Governmental Authority or (c) the
making or issuance of any request, guideline or directive (whether or not having the force of law)
by any Governmental Authority.

     “Change of Control” means an event or series of events by which:

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, but excluding any employee benefit plan of
such person or its subsidiaries, and any person or entity acting in its capacity as
trustee, agent or other fiduciary or administrator of any such plan) becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities
Exchange Act of 1934, except that a person or group shall be deemed to have
“beneficial ownership” of all securities that such person or group has the right to
acquire (such right, an “option right”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of
twenty-five percent (25%) or more of the equity securities of Borrower entitled to
vote for members of the board of directors or equivalent governing body of Borrower
on a fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right); or

 

5

 

     (b) during any period of twelve (12) consecutive months, a majority of the
members of the board of directors or other equivalent governing body of Borrower
cease to be composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or nomination to
that board or equivalent governing body was approved by individuals referred to in
clause (i) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body or (iii) whose election
or nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses (i) and (ii) above constituting
at the time of such election or nomination at least a majority of that board or
equivalent governing body (excluding, in the case of both clause (ii) and
clause (iii), any individual whose initial nomination for, or assumption of
office as, a member of that board or equivalent governing body occurs as a result of
an actual or threatened solicitation of proxies or consents for the election or
removal of one or more directors by any person or group other than a solicitation
for the election of one or more directors by or on behalf of the board of
directors); or

     (c) any Person or two or more Persons acting in concert shall have acquired by
contract or otherwise, or shall have entered into a contract or arrangement that,
upon consummation thereof, will result in its or their acquisition of the power to
exercise, directly or indirectly, a controlling influence over the management or
policies of Borrower, or control over the equity securities of Borrower entitled to
vote for members of the board of directors or equivalent governing body of Borrower
on a fully-diluted basis (and taking into account all such securities that such
Person or group has the right to acquire pursuant to any option right) representing
twenty-five percent (25%) or more of the combined voting power of such securities.

     “Closing Date” means the first date all the conditions precedent in Article IV
are satisfied or waived in accordance with Section 10.1.

     “Code” means the Internal Revenue Code of 1986.

     “Companies” means Borrower and its Consolidated Subsidiaries; and “Company”
means any one of the Companies.

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
C.

     “Consolidated Leverage Ratio” means, as of any date, the ratio of (a) the sum
of (i) all Indebtedness of the Companies, on a consolidated basis, plus (ii) the
Companies’ Share of all Indebtedness of Unconsolidated Affiliates of the Companies, to (b) Total
Asset Value.

     “Consolidated Net Worth” means, for the Companies, on a consolidated basis, as of any date, (a) Total Assets,
 minus (b) all Liabilities, minus (c) the amount determined in accordance with GAAP attributable to any minority interests in Consolidated Subsidiaries.

 

6

 

     “Consolidated Subsidiary” means any Person in whom Borrower directly or
indirectly holds an Equity Interest and whose financial results would be consolidated under GAAP
with the financial results of Borrower on the consolidated financial statements of Borrower.

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

     “Contribution Value” means, as of any date with respect to any Japan Properties Fund
Property or Korea Properties Fund Property, the price at which such Property was acquired by the
Japan Properties Fund or the Korea Properties Fund, as the case may be.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

     “Customary Recourse Exceptions” means, with respect to any Non-Recourse Debt,
exclusions from the exculpation provisions with respect to such Non-Recourse Debt for fraud,
misapplication of cash, environmental claims, and other circumstances customarily excluded by
institutional lenders from exculpation provisions and/or included in separate indemnification
agreements in non-recourse financings of real estate.

     “Debt Service” means, for any Person for any period, the sum of Interest
Expense plus any regularly scheduled principal payments on Indebtedness plus any
operating lease payments related to transactions in which such Person or an Affiliate of such
Person leases, as lessee, any Property or other assets that it owned and sold, transferred, or
otherwise Disposed of to the lessor (or a predecessor in interest to the lessor); provided
that Debt Service shall not include Excluded Debt Service.

     “Debtor Relief Laws” means Title 11 of the United States Code and all other applicable
state or federal liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership,
insolvency, reorganization, suspension of payments or similar debtor relief Laws of the United
States or other applicable jurisdictions from time to time in effect and affecting the rights of
creditors generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means an interest rate equal to (a) the Base Rate, plus (b) the
Applicable Margin, if any, applicable to Base Rate Loans, plus (c) 2% per annum;
provided that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Margin) otherwise applicable to such
Eurodollar Rate Loan plus 2% per annum.

 

7

 

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of its
Term Loan required to be funded by it on the Closing Date, (b) has otherwise failed to pay over to
Administrative Agent or any other Lender any other amount required to be paid by it hereunder
within one (1) Business Day of the date when due, unless the subject of a good faith dispute, or
(c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding.

     “Disposition” or “Dispose” means the sale, transfer, license, lease,
contribution, or other disposition (including any sale and leaseback transaction, but excluding
charitable contributions) of any property by any Person, including any sale, assignment, transfer
or other disposal, with or without recourse, of any notes or accounts receivable or any rights and
claims associated therewith.

     “Disqualified Stock” means any of Borrower’s Equity Interests which by its terms (or
by the terms of any Equity Interests into which it is convertible or for which it is exchangeable
or exercisable) (a) matures or is subject to mandatory redemption, pursuant to a sinking fund
obligation or otherwise, (b) is convertible into or exchangeable or exercisable for a Liability or
Disqualified Stock during the term of this Agreement, (c) is redeemable during the term of the
credit agreement at the option of the holder of such Equity Interests, or (d) otherwise requires
any payments by Borrower, in each case on or before the Maturity Date.

     “Dollar” and “$” mean lawful money of the United States.

     “Eligible Assignee” means (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) Administrative Agent,
and (ii) unless an Event of Default has occurred and is continuing, Borrower (each such approval
not to be unreasonably withheld or delayed); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include Borrower or any of Borrower’s Affiliates
or Subsidiaries.

     “Encumbered Properties” means, any Properties or other assets that are subject to any
Liens (other than Permitted Liens) securing any Liabilities.

     “Environmental Laws” means any and all Federal, state, provincial, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions,
grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including those
related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of
Borrower or any of its Affiliates directly or indirectly resulting from or based upon (a) violation
of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract,

 

8

 

agreement or other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

     “Equity Interests” means, with respect to any Person, all shares of capital stock of
(or other ownership or profit interests in) such Person, all warrants, options or other rights for
the purchase or acquisition from such Person of shares of capital stock of (or other ownership or
profit interests in) such Person, all securities convertible into or exchangeable for shares of
capital stock of (or other ownership or profit interests in) such Person, and all other ownership,
beneficial or profit interests in such Person (including partnership, member or trust interests
therein), whether voting or nonvoting, in each case to the extent then outstanding.

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

     “ERISA Event” means: (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA
during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of
ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer
Plan or receipt by Borrower or any ERISA Affiliate of notification that a Multiemployer Plan is in
reorganization; (d) the filing by Borrower or any ERISA Affiliate of a notice of intent to
terminate any Pension Plan, the treatment of a Pension Plan amendment as a termination under
Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; or (e) an event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan.

     “Eurodollar Rate” for any Interest Period with respect to a Eurodollar Rate Loan, the
rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing quotations of BBA LIBOR as
designated by Administrative Agent from time to time) at approximately 11:00 a.m., London time, two
(2) Business Days prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to such Interest Period.
If such rate is not available at such time for any reason, then the “Eurodollar Rate” for such
Interest Period shall be the rate per annum determined by Administrative Agent to be the rate 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 Eurodollar Rate Loan being made, continued or converted by Bank of
America and with a term equivalent to such Interest Period would be offered by Bank of America’s
London Branch to major banks in the London interbank eurodollar market at their request at
approximately 11:00 a.m. (London time) two (2) Business Days prior to the commencement of such
Interest Period.

 

9

 

     “Eurodollar Rate Loan” means a portion of a Term Loan that bears interest at a rate
based on the Eurodollar Rate.

     “European Appraised Value” means, as of any date with respect to any European
Properties Fund Property, the appraised value of such Property determined pursuant to the
most-recent independent, third-party appraisal obtained in accordance with the constituent
documents of the European Properties Fund.

     “European Properties Fund” means ProLogis European Properties Fund, a Luxembourg fonds
commun de placement (FCP), or any successor Property Fund.

     “European Properties Fund Properties” means, as of any date of determination,
Industrial Properties owned by the European Properties Fund.

     “Event of Default” has the meaning specified in Section 8.1.

     “Excluded Debt Service” means, for any period, any regularly scheduled principal
payments on (a) any Indebtedness which pays such Indebtedness in full, but only to the extent that
the amount of such final payment is greater than the scheduled principal payment immediately
preceding such final payment, and (b) any Indebtedness that is rated at least Baa3 and BBB-, as the
case may be, by at least two (2) of Moody’s, S&P and Fitch.

     “Excluded Properties” means Refrigerated Warehouse Properties, European Properties
Fund Properties, Japan Properties Fund Properties, Korea Properties Fund Properties, Acquired
Properties, and Appraisal Properties.

     “Excluded Taxes” means, with respect to Administrative Agent, any Lender, or any other
recipient of any payment to be made by or on account of any obligation of Borrower hereunder, (a)
taxes imposed on or measured by its overall net income (however denominated), and franchise taxes
imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the Laws of which such recipient is organized, in which such recipient’s principal
office is located or in which such recipient is otherwise conducting business and subject to such
taxes or, in the case of any Lender, in which its applicable Lending Office is located, (b) any
branch profits taxes imposed by the United States or any similar tax imposed by any other
jurisdiction in which Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by Borrower under Section 10.12), any withholding tax that
is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a
party hereto (or designates a new Lending Office) or is attributable to such Foreign Lender’s
failure or inability (other than as a result of a Change in Law) to comply with Section
3.1(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled,
at the time of designation of a new Lending Office (or assignment), to receive additional amounts
from Borrower with respect to such withholding tax pursuant to Section 3.1(a).

     “Existing Credit Agreements” means, collectively, (a) the Multi-Currency Revolving
Facility Agreement dated August 7, 2003, by and among PLD Europe Finance B.V. and

 

10

 

ProLogis UK Funding B.V., as original borrower, ProLogis, as Parent, the guarantors named therein,
ABN AMRO, as Facility Agent, and various lenders, (b) the Revolving Credit Facility Agreement dated
August 5, 2003 by and among ProLogis Japan Finance Incorporated, as original borrower, certain
additional borrowers, ProLogis, as guarantor, SMBC, as Agent, and various lenders, (c) the Credit
Agreement dated November 18, 2004 by and among the borrowers named therein, ProLogis, as guarantor,
Bank of America, acting through its Canadian branch, as Administrative Agent, and various lenders
named therein, (d) the Multi-Year Credit Agreement, (e) the Credit Agreement (364-Day) dated
November 8, 2002, by and among ProLogis, as borrower and guarantor, the other borrowers named
therein, Bank of America, as Administrative Agent, and various lenders, (f) the Credit Agreement
dated June 29, 2005, by and among ProLogis Macquarie Fund, as borrower, ProLogis, as guarantor,
Bank of America, as Administrative Agent, and various lenders, (g) the Agreement dated March 31,
2005 between The Royal Bank of Scotland plc and ProLogis UK Financial Services Limited and (h) all
successor agreements to the Existing Agreements.

     “Federal
Funds Rate” means, 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 Bank of America on such day on such transactions as determined
by Administrative Agent.

     “Fee Letter” means the letter agreement, dated the date hereof, between Borrower and
Administrative Agent.

     “Fitch” means Fitch IBCA, Duff & Phelps, a division of Fitch, Inc. (or any successor
thereof) or, if Fitch no longer publishes ratings, then another ratings agency selected by Borrower
and reasonably acceptable to Administrative Agent.

     “Fitch Rating” means the most recently-announced rating from time to time of Fitch
assigned to any class of long-term senior, unsecured (or secured solely pursuant to the Pledge
Agreements (as defined in the Multi-Year Credit Agreement)) debt securities issued by Borrower, as
to which no guaranty or third party credit support is in place, regardless of whether all or any
part of such Indebtedness has been issued at the time such rating was issued.

     “Fixed Charge Coverage Ratio” means, as of any date, the ratio of (a) (i) Adjusted
EBITDA, minus (ii) Capital Expenditures, to (b) the sum of (i) Debt Service in
respect of all Indebtedness, plus (ii) Preferred Dividends, in each case for the Companies
on a consolidated basis (and including the Companies’ Share of such amounts for their
Unconsolidated Affiliates) and for the four (4) fiscal quarters ending on the date of
determination.

 

11

 

     “Foreign Lender” means any Lender that is not organized under the laws of a
jurisdiction of the United States, a State thereof or the District of Columbia.

     “FRB” means the Board of Governors of the Federal Reserve System of the United States.

     “Fund” means 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.

     “Funding Notice” means a notice of the funding of an advance under the Term Loan
Commitments pursuant to Section 2.1(b), which, if in writing, shall be substantially in the
form of Exhibit A-1.

     “GAAP” means generally accepted accounting principles in the United States 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 such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “Governmental Authority” means 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).

     “Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is made or, if

 

12

 

not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. Guarantees shall not include contingent
obligations under any Special Limited Contribution Agreement (“SLCA”) in connection with
certain of its contributions of Properties to Property Funds pursuant to which a Company is
obligated to make additional capital contributions to the respective Property Fund under certain
circumstances unless the obligations under such SLCA are required under GAAP to be included in
“liabilities” on the balance sheet of the Companies. The term “Guarantee” as a verb has
a corresponding meaning.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Indebtedness” means, for any Person, all monetary obligations (without duplication)
of such Person (a) for borrowed money, (b) evidenced by bonds, debentures, notes, or similar
instruments, (c) to pay the deferred purchase price of property or services except (i) trade
payables arising in the ordinary course of business, (ii) deferred tax Liabilities, (iii)
obligations incurred in the ordinary course of business to pay the purchase price of stock so long
as such obligations are paid within customary settlement terms, and (iv) obligations to purchase
stock (other than stock of Borrower or any of its Consolidated Subsidiaries or Affiliates) pursuant
to subscription or stock purchase agreements in the ordinary course of business, (d) secured by a
Lien existing on any property of such Person, whether or not such obligation shall have been
assumed by such Person; provided that the amount of any Indebtedness under this clause
(d) that has not been assumed by such Person shall be equal to the lesser of the stated amount
of such Indebtedness or the fair market value of the property securing such Indebtedness, (e)
arising under Capital Leases to the extent included on a balance sheet of such Person, (f) arising
under Swap Contracts exclusive of interest rate contracts purchased to hedge indebtedness in the
ordinary course of business and net of obligations owed to such Person under Swap Contracts, and
(g) arising under any Guarantee of such Person (other than (i) endorsements in the ordinary course
of business of negotiable instruments or documents for deposit or collection, (ii) indemnification
obligations and purchase price adjustments pursuant to acquisition agreements entered into in the
ordinary course of business and (iii) any Guarantee of Liabilities of a third party that do not
constitute Indebtedness). The amount of any Indebtedness shall be determined without giving effect
to any mark-to-market increase or decrease resulting from the purchase accounting impact of
corporate or portfolio acquisition or any mark-to-market remeasurement of the amount of any
Indebtedness denominated in a currency other than Dollars. Indebtedness shall not include
obligations under any assessment, performance, bid or surety bond or any similar bonding
obligation.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitees” has the meaning specified in Section 10.4.2.

 

13

 

     “Industrial Property” means a Property that is used for manufacturing, processing or
warehousing.

     “Information” has the meaning specified in Section 10.7.

     “Interest Expense” means, for any Person for any period, (a) all interest expense on
such Person’s Indebtedness (whether direct, indirect, or contingent, and including interest on all
convertible Liabilities) determined in accordance with GAAP, minus (b) amortized loan fees
to the extent previously paid in cash, plus (c) Restricted Payments of any kind or
character or other proceeds paid or payable with respect to any Disqualified Stock.

     “Interest Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of
each Interest Period applicable thereto and the Maturity Date; and (b) as to any Base Rate Loan,
the last Business Day of each March, June, September and December and the Maturity Date.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan,
as applicable, and ending on the date seven (7) days or one (1) or two (2) months thereafter, as
selected by Borrower in the applicable Funding Notice or Loan Notice; provided that:

     (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 such next succeeding Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding Business
Day;

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

     (c) no Interest Period shall extend beyond the Maturity Date.

     “Internal Control Event” means a material weakness in, or fraud that involves
management or other employees who have a significant role in, Borrower’s internal controls over
financial reporting, in each case as described in the Securities Laws.

     “Investment” in any Person, Property, or other asset means any investment, whether by
means of stock, purchase, loan, advance, extension of credit, capital contribution, or otherwise,
in or to such Person, the guaranty of any Liabilities of such Person, or the subordination of any
claim against such Person to other Liabilities of such Person. The amount of any Investment shall
be determined in accordance with GAAP; provided that the amount of the Investment in
Properties shall be calculated based upon the undepreciated Investment in such Property.

     “IRS” means the United States Internal Revenue Service.

 

14

 

     “Issuance Proceeds” means the net cash proceeds of any issuance by ProLogis of
Indebtedness in a transaction (or series of related transactions) pursuant to which ProLogis issues
$100,000,000 of indebtedness, excluding indebtedness under the Existing Credit Agreements.

     “Japan Appraised Value” means the value of a Japan Properties Fund Property as
determined by a third-party appraisal conducted subsequent to the acquisition of such Japan
Properties Fund Property by the Japan Properties Fund.

     “Japan Properties Fund” means the entity commonly referred to as ProLogis Japan
Properties Fund, formally named PLD/RECO Japan TMK Property Trust, a Japan Trust, or any successor
Property Fund.

     “Japan Properties Fund Properties” means, as of any date of determination, Industrial
Properties owned by the Japan Properties Fund.

     “Keystone Acquisition” means the transactions contemplated by the Agreement and Plan
of Merger dated as of May 3, 2004 among ProLogis Six Rivers Limited Partnership, Six Rivers REIT
Merger Sub LLC, Six Rivers Partnership Merger Sub L.P., Borrower, ProLogis Fraser, L.P., Belair
Real Estate Corp., Belcrest Real Estate Corp., Belmar Real Estate Corp., Belrose Real Estate Corp.,
Keystone Operating Partnership, L.P. and Keystone Property Trust, together with the agreements and
transactions entered into in connection therewith.

     “Korea Appraised Value” means the value of a Korea Properties Fund Property as
determined by third-party appraisal conducted subsequent to the acquisition of such Korea
Properties Fund Property by the Korea Properties Fund.

     “Korea Properties Fund” means a Property Fund to be formed or sponsored by Borrower to
hold Properties predominantly in Korea or any successor Property Fund.

     “Korea Properties Fund Properties” means, as of any date of determination, Industrial
Properties owned by the Korea Properties Fund

     “Laws” means, 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.

     “Lender” has the meaning specified in the introductory paragraph hereto.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time designate by notice to Borrower and Administrative Agent.

 

15

 

     “Liabilities” means (without duplication), for any Person, (a) any obligations
required by GAAP to be classified upon such Person’s balance sheet as liabilities (excluding any
deferred tax liabilities and any mark-to-market increase or decrease in debt from the purchase
accounting impact of corporate or portfolio acquisitions and from the re-measurement of
intercompany indebtedness); (b) any liabilities secured (or for which the holder of the liability
has an existing right, contingent or otherwise, to be so secured) by any Lien existing on property
owned or acquired by that Person, whether or not such obligation shall have been assumed by such
Person, provided that the amount of any Liability under this clause (b) that has
not been assumed by such Person shall be equal to the lesser of the stated amount of the
liabilities secured (or entitled to be secured) or the fair market value of the applicable
property; and (c) any Guarantees of such Person of liabilities or obligations of others.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, priority or other security interest or preferential
arrangement in the nature of a security interest of any kind or nature whatsoever (including any
conditional sale or other title retention agreement, any easement, right of way or other
encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing, but excluding the interest of a lessor under an operating
lease).

     “Loan Documents” means this Agreement, each Note, and the Fee Letter.

     “Loan Notice” means a notice of (a) a conversion of Base Rate Loans to Eurodollar
Loans, or vice versa, or (b) a continuation of Eurodollar Rate Loans, pursuant to
Section 2.2(a), which, if in writing, shall be substantially in the form of Exhibit
A-2.

     “Material Adverse Effect” means any (a) material impairment of the ability of Borrower
to perform any of its payment or other material obligations under any Indebtedness, (b) material
and adverse change in the assets, operations or financial condition of the Companies, taken as a
whole or (c) material impairment of the ability of Borrower to perform any of its payment or other
material obligations under this Agreement unless (i) Borrower has performed or discharged such
obligation (if capable of being so performed or discharged) or (ii) Borrower has a legal obligation
to perform and discharge such obligation and Borrower is discharging its legal obligation
accordingly.

     “Maturity Date” means September 14, 2006.

     “Maximum Leverage Ratio” means 0.60 to 1.0; provided that the Maximum Leverage
Ratio may be increased to up to 0.65 to 1.0 subject to the following conditions: (a) such increase
is at the request of Borrower by written notice to Administrative Agent and is a result of
Indebtedness incurred by Borrower and identified in writing to Administrative Agent to make an
acquisition of Equity Interests or assets of a third party otherwise permitted hereunder; (b) such
increase shall not occur more than three (3) times during the term of this Agreement; and (c) all
such increases shall be in effect on the last day of not more than six (6) fiscal quarters in the
aggregate

 

16

 

     “Moody’s” means Moody’s Investors Service, Inc. (or any successor thereof) or, if
Moody’s no longer publishes ratings, another ratings agency selected by Borrower and reasonably
acceptable to Administrative Agent.

     “Moody’s Rating” means the most recently-announced rating from time to time of Moody’s
assigned to any class of long-term senior, unsecured (or secured solely pursuant to the Pledge
Agreements (as defined in the Multi-Year Credit Agreement)) debt securities issued by Borrower, as
to which no guaranty or third party credit support is in place, regardless of whether all or any
part of such Indebtedness has been issued at the time such rating was issued.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Multi-Year Credit Agreement” means, collectively, (a) the Credit Agreement
(Multi-Year) dated November 8, 2002, by and among Borrower, as a borrower and guarantor, the other
borrowers named therein, Bank of America, as Administrative Agent, and various lenders, and (b) any
agreement replacing or refinancing the foregoing (including the Global Senior Credit Agreement that
Borrower anticipates will become effective in September of 2005).

     “NOI” means, for any period and any Property, the difference (if positive) between (a)
any rentals, proceeds, expense reimbursements, or income received from such Property (but excluding
security or other deposits, late fees, early lease termination, or other penalties of a
non-recurring nature), less (b) all costs and expenses (including interest on assessment
bonds) incurred as a result of, or in connection with, the development, operation, or leasing of
such Property, in each case determined in accordance with GAAP (but excluding depreciation,
amortization, Interest Expense and Capital Expenditures).

     “Non-Consenting Lender” means any Lender that, within the preceding sixty (60) days,
failed to agree to an amendment, waiver, or consent that was (a) requested by Borrower and (b)
approved by Lenders holding at least forty percent (40%) of the Outstanding Amount.

     “Non-Industrial Property” means a Property that is not an Industrial Property.

     “Non-Recourse Debt” means, for any Person, any Indebtedness of such Person in which
the holder of such Indebtedness may not look to such Person personally for repayment, other than to
the extent of any security therefor or pursuant to Customary Recourse Exceptions

     “Note” means a promissory note made by Borrower in favor of a Lender evidencing the
Term Loan made by such Lender, substantially in the form of Exhibit B.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, Borrower arising under any Loan Document or otherwise with respect to the Term
Loans, whether direct or indirect (including those acquired by assumption), absolute or contingent,
due or to become due, now existing or hereafter arising and including interest and

 

17

 

fees that accrue after the commencement by or against Borrower or any Affiliate thereof of any
proceeding under any Debtor Relief Law naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such proceeding.

     “Organization Documents” means: (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.

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

     “Outstanding Amount” means, on any date, the aggregate outstanding principal amount of
the Term Loans after giving effect to any prepayments or repayments of the Term Loans occurring on
such date.

     “Overnight Rate” means, for any day, the greater of (a) the Federal Funds Rate and (b)
an overnight rate determined by Administrative Agent, in accordance with banking industry rules on
interbank compensation.

     “Participant” has the meaning specified in Section 10.6.4.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower or any ERISA
Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any time during the
immediately preceding five plan years.

     “Permitted Distributions” means, for Borrower for any fiscal year of Borrower,
Restricted Payments (excluding Permitted Redemptions) in an amount not to exceed in the aggregate
the greater of (a) ninety-five percent (95%) of the Funds from Operations of Borrower as
reported to its shareholders in either the annual report of Borrower filed with the Securities and
Exchange Commission on Form 10-K or the quarterly investment package prepared for the holders of
its Equity Interests for the quarter ending December 31 for such fiscal year, and

 

18

 

(b) the amount of
Restricted Payments required to be paid by Borrower in order for Borrower to qualify as a REIT.

     “Permitted Liens” means (a) Liens granted to Administrative Agent to secure the
Obligations, (b) pledges or deposits made to secure payment of worker’s compensation (or to
participate in any fund in connection with worker’s compensation insurance), unemployment
insurance, pensions, or social security programs, (c) encumbrances consisting of zoning
restrictions, easements, or other restrictions on the use of real property, provided that
such items do not materially impair the use of such property for the purposes intended and none of
which is violated in any material respect by existing or proposed structures or land use, (d) the
following: (i) Liens for taxes not yet due and payable or are being contested in good faith by
appropriate proceedings diligently conducted, and for which reserves in accordance with GAAP or
otherwise reasonably acceptable to Administrative Agent have been provided; or (ii) Liens imposed
by mandatory provisions of law such as for materialmen’s, mechanic’s, warehousemen’s, and other
like Liens arising in the ordinary course of business, securing payment of any Liability whose
payment is not yet due, (e) Liens for taxes, assessments, and governmental charges or assessments
that are being contested in good faith by appropriate proceedings diligently conducted, and for
which reserves in accordance with GAAP or otherwise reasonably acceptable to Administrative Agent
have been provided, (f) Liens on Properties where the applicable Company or Unconsolidated
Affiliate is insured against such Liens by title insurance or other similar arrangements
satisfactory to Administrative Agent, (g) Liens securing assessments or charges payable to a
property owner association or similar entity, which assessments are not yet due and payable or are
being contested in good faith by appropriate proceedings diligently conducted, and for which
reserves in accordance with GAAP or otherwise reasonably acceptable to Administrative Agent have
been provided, (h) Liens securing assessment bonds, so long as the applicable Company or
Unconsolidated Affiliate is not in material default under the terms thereof, (i) Liens granted to
Borrower by any other Company or an Unconsolidated Affiliate, (j) leases to tenants of space in
Properties that are entered into in the ordinary course of business, (k) any netting or set-off
arrangement entered into by any Company in the normal course of its banking arrangements for the
purpose of netting debit and credit balances, or any set-off arrangement which arises by operation
of law as a result of any Company opening a bank account, (l) any title transfer or retention of
title arrangement entered into by any Company in the normal course of its trading activities on the
counterparty’s standard or usual terms and (m) any Lien permitted under the Multi-Year Credit
Agreement.

     “Permitted Redemption” means Restricted Payments permitted by Section 7.5(e).

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by Borrower or, with respect to any such plan that is subject to Section 412 of
the Code or Title IV of ERISA, any ERISA Affiliate.

     “Platform” has the meaning specified in Section 6.2.

 

19

 

     “Preferred Dividends” means, for the Companies, on a consolidated basis, for any
period, Restricted Payments of any kind or character or other proceeds paid or payable with respect
to any Equity Interests except for common equity (but excluding any Restricted Payments paid or
payable to any Company).

     “Properties” means real estate properties (including land) owned by a Company or an
Unconsolidated Affiliate or any trust of which a Company or an Unconsolidated Affiliate is the sole
beneficiary, and “Property” means any one of the Properties.

     “Property Fund” means an Unconsolidated Affiliate formed or sponsored by Borrower to
hold Properties.

     “Property Fund Loan” means Indebtedness of a Property Fund, the proceeds of which were
used to finance the contribution by Borrower or other Companies of Properties to such Property
Fund.

     “Purchase Price” means, with respect to the Catellus Acquisition, all cash payments
made to or for the benefit of the Person being acquired (or whose assets are being acquired) or its
shareholders, officers, directors, employees or Affiliates in connection with the Catellus
Acquisition.

     “Qualified Bridge Loans” means, as of the date any Compliance Certificate is
delivered, any Property Fund Loan that will be refinanced on or prior to maturity with permanent
financing to be provided pursuant to an executed rate lock letter or mortgage loan application
subject to due diligence in effect on the date such Compliance Certificate is delivered;
provided that the aggregate amount of Qualified Bridge Loans shall not exceed five percent
(5%) of Total Asset Value as of the date of determination; and provided, further,
that a Property Fund Loan shall cease to be a Qualified Bridge Loan one hundred twenty (120) days
after such Property Fund Loan becomes a Qualified Bridge Loan.

     “Rating Requirement” means, as of any date of determination, the lower of the two (2)
highest ratings of the Moody’s Rating, the S&P Rating, and the Fitch Rating. Initially, the
Applicable Margin shall be determined based upon the Rating Requirement specified in the
certificate delivered pursuant to Section 4.1(g)(iv). For purposes hereof, the correlation
of the levels or grades of the Moody’s Rating, the S&P Rating, and the Fitch Rating shall be as set
forth in the table included herein in the definition of “Applicable Margin” in the column
labeled “Rating Requirement.” Each change in the Rating Requirement shall be effective
commencing on the fifth (5th) Business Day following the earlier to occur of (a)
Administrative Agent’s receipt of notice from Borrower, as required in Section 6.3(f), of
an applicable change in the Moody’s Rating, the S&P Rating, or the Fitch Rating and (b)
Administrative Agent’s actual knowledge of an applicable change in the Moody’s Rating, the S&P
Rating, or the Fitch Rating.

     “Recourse Debt” means all Indebtedness that is not Non-Recourse Debt; provided
that “Recourse Debt” shall not include Recourse Debt of Unconsolidated Affiliates of a Person
unless the holder of such Recourse Debt has recourse against such Person for the payment of such

 

20

 

Recourse Debt other than to the extent of any security therefor or pursuant to any Customary
Recourse Exceptions.

     “Refrigerated Warehouse Property” means a Property that is a temperature-controlled
facility operated by any Company.

     “Register” has the meaning specified in Section 10.6.3.

     “Registered Public Accounting Firm” has the meaning specified in the Securities Laws
and shall be independent of Borrower as prescribed by the Securities Laws.

     “REIT” means a “real estate investment trust” for purposes of the Code.

     “Related Parties” means, 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.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the thirty (30) day notice period has been waived.

     “Required Lenders” means, as of any date of determination, Lenders having aggregate
Applicable Percentages of more than fifty percent (50%); provided that the Applicable
Percentage of any Defaulting Lender shall be excluded for purposes of making a determination of
Required Lenders.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, representative director, treasurer or assistant treasurer of Borrower. Any document
delivered hereunder that is signed by a Responsible Officer shall be conclusively presumed to have
been authorized by all necessary corporate, partnership and/or other action on the part of Borrower
and such Responsible Officer shall be conclusively presumed to have acted on behalf of Borrower.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity Interest of any
Company, 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 capital stock or other Equity Interest, or on account of any return of
capital to any Company’s stockholders, partners or members (or the equivalent).

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. (or any successor thereof), or, if S&P no longer publishes ratings, then another
ratings agency selected by Borrower and reasonably acceptable to Administrative Agent.

     “S&P Rating” means the most recently-announced rating from time to time of S&P
assigned to any class of long-term senior, unsecured (or secured solely pursuant to the Pledge
Agreements (as defined in the Multi-Year Credit Agreement)) debt securities issued by

 

21

 

Borrower, as to which no guaranty or third party credit support is in place, regardless of whether all or any
part of such Indebtedness has been issued at the time such rating was issued.

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

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

     “Secured Debt” means, for any Person, Indebtedness of such Person secured by any Liens
(other than Permitted Liens) in any of such Person’s Properties or other material assets.

     “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the Public Company Accounting
Oversight Board.

     “Share” means, for any Person, such Person’s share of the assets, liabilities,
revenues, income, losses, or expenses of an Unconsolidated Affiliate based upon such Person’s
percentage ownership of Equity Interests of such Unconsolidated Affiliate.

     “Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Companies as of that date determined in accordance with GAAP.

     “Solvent” means, as to a Person, that (a) the aggregate fair market value of its
assets exceeds its Liabilities, (b) it has sufficient cash flow to enable it to pay its Liabilities
as they mature and (c) it does not have unreasonably small capital to conduct its businesses.

     “Stabilized Industrial Properties” means, as of any date, Industrial Properties that
have a Stabilized Occupancy Rate as of the first day of the most recent fiscal quarter of Borrower
for which information is available.

     “Stabilized Occupancy Rate” means, as of any date for any Property, that the
percentage of the rentable area of such Property leased pursuant to bona fide tenant leases,
licenses, or other agreements requiring current rent or other similar payments, is at least ninety
percent (90%) or such higher percentage as Borrower requires internally, consistent with past
practices, to classify as stabilized a Property of the relevant type in the relevant market.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of Borrower.

 

22

 

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or
other readily available quotations provided by any recognized dealer in such Swap Contracts (which
may include a Lender or any Affiliate of a Lender).

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Term Loan” means any loan made pursuant to the Term Loan Commitments.

     “Term Loan Commitment” means, for a Lender, the amount (which is subject to reduction
and cancellation as provided in this Agreement) stated besides such Lender’s name on Schedule
2.1, or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable, and “Term Loan Commitments” means the Term Loan Commitments of all Lenders.

     “Total Asset Value” means, as of any date for the Companies on a consolidated basis
(and including the Companies’ Share of the following amounts for their Unconsolidated Affiliates):

          (a) the sum of (without duplication):

     (i) the quotient of (A) the most recent fiscal quarter’s NOI from Stabilized
Industrial Properties (other than Excluded Properties) multiplied by four (4),
plus management fee income of the Companies for the most recent

 

23

 

fiscal quarter multiplied by four (4) (not to exceed fifteen percent (15%) of
NOI of all Industrial Properties of the Companies and the Companies’ share of NOI
from their Unconsolidated Affiliates), divided by (B) eight percent (8.0%);
plus

     (ii) the amount of Investments in Properties under construction; plus

     (iii) the amount of Investments in Properties (A) acquired within twenty-four
(24) months prior to such date of determination, provided that after the
twenty-four (24) month period, if any such Property is not a Stabilized Industrial
Property, then such Property shall be treated as Transition Property as of the date
such Property would have otherwise been treated as a Transition Property if such
Property were not previously treated as an acquired Property, and (B) acquired
pursuant to the Keystone Acquisition or the Catellus Acquisition (regardless of
whether Stabilized Industrial Properties or Transition Properties) (in each case for
which NOI will not be calculated in clause (a)(i) above to avoid
duplication); plus

     (iv) the appraised value set forth in third-party appraisals with respect to
Appraisal Properties for up to eighteen (18) months following the date of such
respective appraisal (for which time NOI will not be calculated in clause
(a)(i) above to avoid duplication, and following such time, the Total Asset
Value of such Appraisal Properties will then be calculated in accordance with
clause (a)(i) above); plus

     (v) the greater of (A) (x) the most recent fiscal quarter’s NOI
multiplied by four (4), divided by (y) eight percent (8.0%), and (B) the amount of
Investments of Transition Properties (other than Excluded Properties) that became
Transition Properties twelve (12) months or less prior to such date; plus

     (vi) the greater of (A) (x) the most recent fiscal quarter’s NOI
multiplied by four (4), divided by (y) eight percent (8.0%), and (B) seventy-five
percent (75%) of the amount of Investments of Transition Properties (other than
Excluded Properties) that became Transition Properties twenty-four (24) months or
less but more than twelve (12) months prior to such date; plus

     (vii) the greater of (A) (x) the most recent fiscal quarter’s NOI
multiplied by four (4), divided by (y) eight (8.0%), and (B) fifty percent (50%) of
the amount of Investments of Transition Properties (other than Excluded Properties)
that became Transition Properties more than twenty-four (24) months prior to such
date; plus

     (viii) the Companies’ Share of the European Appraised Value of European
Properties Fund Properties; plus

     (ix) the Companies’ Share of the sum of:

 

24

 

     (A) the greater of (x) the Japan Appraised Value, and (y) the
Contribution Value of Japan Properties Fund Properties (other than
Transition Properties) in each case for Investments in Stabilized Industrial
Properties; plus

     (B) the Contribution Value of Japan Properties Fund Properties that are
Transition Properties that became Transition Properties twelve (12) months
or less prior to such date; plus

     (C) the greater of (x) the Japan Appraised Value based upon an
appraisal obtained after the applicable Transition Event occurred, and (y)
seventy-five percent (75%) of the Contribution Value of Japan Properties
Fund Properties that are Transition Properties that became Transition
Properties twenty-four (24) months or less but more than twelve (12) months
prior to such date; plus

     (D) the greater of (x) the Japan Appraised Value based upon an
appraisal obtained after the applicable Transition Event occurred, and (y)
fifty percent (50%) of the Contribution Value of Japan Properties Fund
Properties that are Transition Properties that became Transition Properties
more than twenty-four (24) months prior to such date; plus

     (E) the greater of (x) the Korea Appraised Value, and (y) the
Contribution Value of Korea Properties Fund Properties (other than
Transition Properties) in each case for Investments in Stabilized Industrial
Properties; plus

     (F) the Contribution Value of Korea Properties Fund Properties that are
Transition Properties that became Transition Properties twelve (12) months
or less prior to such date; plus

     (G) the greater of (x) the Korea Appraised Value based upon an
appraisal obtained after the applicable Transition Event occurred, and (y)
seventy-five percent (75%) of the Contribution Value of Korea Properties
Fund Properties that are Transition Properties that became Transition
Properties twenty-four (24) months or less but more than twelve (12) months
prior to such date; plus

     (H) the greater of (x) the Korea Appraised Value based upon an
appraisal obtained after the applicable Transition Event occurred, and (y)
fifty percent (50%) of the Contribution Value of Korea Properties Fund
Properties that are Transition Properties that became Transition Properties
more than twenty-four (24) months prior to such date; plus

 

25

 

     (x) the amount of any cash and Cash Equivalents (excluding tenant security
and other restricted deposits); plus

     (xi) the amount of Investments in Refrigerated Warehouse Properties;
plus

     (xii) the amount of Investments in all other assets the value of which has not
been captured in clauses (a)(i) through (a)(xi) above;

          less

     (b) the amount of all assets included in the calculation of clause (a)(xii)
above that would be treated as intangible assets under GAAP (including goodwill, trademarks,
trade names, copyrights, patents, deferred charges, and unamortized debt discount and
expense).

Notwithstanding the foregoing, the amount included in Total Asset Value attributable to clauses
(a)(vi)(B) and (a)(vii)(B) above shall not exceed fifteen percent (15%) of Total Asset
Value.

     “Total Assets” means, for any Person as of any date, (a) such Person’s total assets
determined in accordance with GAAP, plus (b) accumulated depreciation with respect to such
assets.

     “Transition Event” means the events or circumstances that resulted in a Stabilized
Industrial Property becoming a Transition Property.

     “Transition Properties” means, as of any date, (a) Industrial Properties that were
Stabilized Industrial Properties prior to such date but are no longer Stabilized Industrial
Properties as of such date, or (b) Industrial Properties in which construction has been completed
and that have never reached a Stabilized Occupancy Rate.

     “Type” means, with respect to a portion of a Term Loan, its character as a Base Rate
Loan or a Eurodollar Rate Loan.

     “Unconsolidated Affiliate” means any Person in which Borrower directly or indirectly
holds Equity Interests but which is not consolidated under GAAP with Borrower on the consolidated
financial statements of Borrower.

     “Unencumbered Debt Service” means, for any period, all Debt Service in respect of all
Unsecured Debt of the Companies.

     “Unencumbered Debt Service Coverage Ratio” means, as of any date, the ratio of (a)
Unencumbered EBITDA, to (b) Unencumbered Debt Service, in each case for the four (4) fiscal
quarters ending on the date of determination.

 

26

 

     “Unencumbered EBITDA” means, for any period, Adjusted EBITDA of the Companies (other
than Adjusted EBITDA attributable to any Encumbered Properties owned by a Company) during such
period; provided that (a) there shall not be included in Unencumbered EBITDA any Adjusted
EBITDA subject to any Lien (other than Permitted Liens), (b) Adjusted EBITDA shall be adjusted for
a capital reserve of (i) $0.20 per square foot in the case of Properties that are not Refrigerated
Warehouse Properties, or (ii) $0.10 per cubic foot in the case of Properties that are Refrigerated
Warehouse Properties (except, in each case, for Properties where the tenant is responsible for
capital expenditures) and (c) Unencumbered EBITDA attributable to Consolidated Subsidiaries of
Borrower that are not Wholly-owned, directly or indirectly, by Borrower shall be limited to ten
percent (10%) of Unencumbered EBITDA.

     “Unencumbered Property” means any Property that is not an Encumbered Property.

     “United States” and “U.S.” mean the United States of America.

     “Unsecured Debt” means, for any Person, Indebtedness of such Person that is not
Secured Debt.

     “Wholly-owned” when used in connection with any Consolidated Subsidiary of any Person
shall mean a Consolidated Subsidiary of which all of the issued and outstanding shares of Equity
Interests shall be owned by such Person or one or more of its Wholly-owned Consolidated
Subsidiaries.

     1.2 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

 

27

 

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.

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

     1.3.2 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
Borrower or Required Lenders shall so request, Administrative Agent, Lenders and 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 Required
Lenders); provided that, until so amended, (a) such ratio or requirement shall continue to
be computed in accordance with GAAP prior to such change therein and (b) Borrower shall
provide to Administrative Agent and 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.

     1.3.3 Consolidation of Variable Interest Entities. All references herein to
consolidated financial statements of Borrower and its Subsidiaries or to the determination
of any amount for Borrower and its Subsidiaries on a consolidated basis or any similar
reference shall, in each case, be deemed to include each variable interest entity that
Borrower is required to consolidate pursuant to FASB Interpretation No. 46 – Consolidation
of Variable Interest Entities: an interpretation of ARB No. 51 (January 2003) as if such
variable interest entity were a Subsidiary as defined herein.

     1.4 Rounding. Any financial ratios required to be maintained by Borrower pursuant to this Agreement shall be
calculated by dividing the appropriate component by the other

 

28

 

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 Central time (daylight or standard, as applicable).

ARTICLE II

THE TERM LOAN COMMITMENTS AND THE TERM LOANS

2.1 Term Loans.

     (a) Subject to the terms and conditions set forth herein, each Lender severally
agrees to make a Term Loan to Borrower in multiple advances on any Business Day
during the Availability Period in an amount not to exceed such Lender’s Term Loan
Commitment, provided that (i) the Outstanding Amount of the all Term Loans
shall not exceed the Term Loan Commitments and (ii) Borrower may not request more
than three (3) advances of Term Loans hereunder. If all or any portion of the
Outstanding Amount is paid or prepaid, then the amount so paid or prepaid may not be
reborrowed. The Term Loans may be Base Rate Loans or Eurodollar Rate Loans, as
further provided herein.

     (b) Borrower shall deliver to Administrative Agent a fully executed Funding
Notice not later than 11:00 a.m. (i) three (3) Business Days prior to the Advance
Date for any Eurodollar Rate Loans, and (ii) on the Advance Date for any Base Rate
Loans. The Funding Notice shall specify (A) whether the advance is to be comprised
of Base Rate Loans, Eurodollar Loans or both, (B) the principal amount of the Base
Rate Loans and the Eurodollar Rate Loans to be advanced (if more than one (1) Type
is requested), and (C) if applicable, the duration of the Interest Period with
respect to each Eurodollar Rate Loan. If Borrower fails to give a timely notice of
a Eurodollar Rate Loan, then the advance shall be made as Base Rate Loans. If
Borrower requests Eurodollar Rate Loans in such Funding Notice, but fails to specify
an Interest Period, it will be deemed to have specified an Interest Period of one
(1) month.

     (c) Promptly upon receipt by Administrative Agent of such Funding Notice,
Administrative Agent shall notify each Lender of the proposed borrowing. Each Lender
shall make the amount of its advance available to Administrative Agent in
immediately available funds at Administrative Agent’s Office not later than 1:00
p.m. on the Closing Date. Upon satisfaction of the applicable conditions set forth
in Article IV Administrative Agent shall make all funds so received
available to Borrower in like funds as received by Administrative Agent by wire
transfer of such funds in accordance with instructions provided to (and reasonably
acceptable to) Administrative Agent by Borrower.

 

29

 

     2.2 Conversions and Continuations.

     (a) Each conversion of a portion of the Term Loans from one Type to the other,
and each continuation of Eurodollar Rate Loans, shall be made upon Borrower’s
irrevocable notice to Administrative Agent, which may be given by telephone. Each
such notice must be received by Administrative Agent not later than 11:00 a.m. three
(3) Business Days prior to the requested date of any conversion to or continuation
of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate
Loans. Each telephonic notice by Borrower pursuant to this Section 2.2(a)
must be confirmed promptly by delivery to Administrative Agent of a written Loan
Notice, appropriately completed and signed by a Responsible Officer. Each
conversion to or continuation of a portion of the Term Loans shall be in an
aggregate principal amount of $10,000,000, or a whole multiple of $5,000,000 in
excess thereof. Each Loan Notice (whether telephonic or written) shall specify (i)
whether Borrower is requesting a conversion of a portion of the Term Loans from one
Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested
date of the conversion or continuation, as the case may be (which shall be a
Business Day), (iii) the aggregate principal amount to converted or continued, (iv)
the Type of the portion of the Term Loans to be converted, and (v) if applicable,
the duration of the new Interest Period with respect thereto. If Borrower fails to
give a timely notice requesting a continuation of Eurodollar Rate Loans, then such
Eurodollar Rate Loans shall be made as, or converted to, Base Rate Loans. Any such
automatic conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurodollar Rate Loans.
If Borrower requests a conversion to, or continuation of Eurodollar Rate Loans in
any such Loan Notice, but fails to specify an Interest Period, it will be deemed to
have specified an Interest Period of one month.

     (b) Administrative Agent shall notify each Lender of the details of any
automatic conversion to Base Rate Loans described in the preceding subsection.

     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be
continued or converted only on the last day of an Interest Period for such
Eurodollar Rate Loan. During the existence of a Default, no portion of the Term
Loans may be converted to or continued as Eurodollar Rate Loans without the consent
of Required Lenders.

     (d) Administrative Agent shall promptly notify Borrower and Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
determination of such interest rate. At any time that Base Rate Loans are
outstanding, Administrative Agent shall notify Borrower and Lenders of any change in
Bank of America’s prime rate used in determining the Base Rate promptly following
the public announcement of such change.

 

30

 

     (e) After giving effect to all conversions of portions of Term Loans from one
Type to the other, and all continuations of portions of Eurodollar Rate Loans, there
shall not be more than twelve (12) Interest Periods in effect with respect to the
Term Loans.

     2.3
Prepayments and Commitment Reductions.

     2.3.1 Voluntary Prepayments. Borrower may, upon notice to Administrative Agent,
at any time or from time to time voluntarily prepay the Term Loans in whole or in part
without premium or penalty; provided, that (a) such notice must be received
by Administrative Agent not later than 11:00 a.m. (i) three (3) Business Days prior to any
date of prepayment of Eurodollar Rate Loans and (ii) on the date of prepayment of Base Rate
Loans; and (b) any prepayment shall be in a principal amount of $10,000,000, or a whole
multiple of $5,000,000 in excess thereof or, if less, the entire principal amount thereof
then outstanding. Each such notice shall specify the date and amount of such prepayment and
the portions of the Term Loans to be prepaid. Administrative Agent will promptly notify
each Lender of its receipt of each such notice, and of the amount of such Lender’s
Applicable Percentage of such prepayment. If such notice is given by Borrower, Borrower
shall make such prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be
accompanied by all accrued interest on the amount prepaid, together with any additional
amounts required pursuant to Section 3.5. Each such prepayment shall be applied to
the Term Loans of Lenders in accordance with their respective Applicable Percentages.

     2.3.2 Mandatory Prepayments. Immediately upon the receipt thereof, Borrower
shall prepay the Term Loans in an amount equal to one hundred percent (100%) of any Issuance
Proceeds. Any such mandatory prepayment of the Term Loans shall be applied to Term Loans of
the various Lenders on a pro rata basis in accordance with the principal
amounts of their respective Term Loans.

     2.3.3 Reductions of Term Loan Commitments. Concurrently with each prepayment
of Term Loans, the aggregate amount of the Term Loan Commitments shall be reduced by the
amount of the aggregate principal amount of such prepayment. In addition, (a) Borrower may,
at any time prior to the last day of the Availability Period, reduce the aggregate amount of
the Term Loan Commitments by giving notice of such reduction (and of the amount thereof,
which shall be an integral multiple of $5,000,000) to Administrative Agent (which shall
promptly advise each Lender of such reduction); provided that the aggregate amount of the
Term Loan Commitments shall not be reduced below the Outstanding Amount; and (b) on the last
day of the Availability Period, the aggregate amount of the Term Loan Commitments shall
automatically be reduced to an amount equal to the Outstanding Amount. All reductions of the
Term Loan Commitments shall ratably reduce the Term Loan Commitment of each Lender in
accordance with its Applicable Percentage.

 

31

 

     2.4
Repayment of Term Loans. Borrower shall repay to Lenders on the Maturity Date the Outstanding
Amount on such date.

     2.5 Interest and Principal Payments.

     (a) Subject to the provisions of subsection (b) below, (i) each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof
for each Interest Period at a rate per annum equal to the Eurodollar Rate for such
Interest Period plus the Applicable Margin; and (ii) each Base Rate Loan
shall bear interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Margin.

     (b) (i) If any amount of principal of any Term Loan is not paid when due
(without regard to any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to the
fullest extent permitted by applicable Laws.

     (ii) If any amount (other than principal of any Term Loan) payable by
Borrower under any Loan Document is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or
otherwise, then upon the request of Required Lenders, such amount shall
thereafter bear interest at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

     (iii) Upon the request of Required Lenders, while any Event of Default
exists, Borrower shall pay interest on the principal amount of all
outstanding Obligations hereunder at a fluctuating interest rate per annum
at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

     (iv) Accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be due and payable upon demand.

     (c) Interest on each portion of a Term Loan shall be due and payable in arrears
on each Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance with
the terms hereof before and after judgment, and before and after the commencement of
any proceeding under any Debtor Relief Law.

 

32

 

     2.6 Fees.

     2.6.1 Facility Fee. Borrower shall pay to Administrative Agent, for the
account of each Lender in accordance with its Applicable Percentage, a facility fee
equal to the Applicable Margin times the actual daily amount of the Term Loan
Commitment of such Lender (or, if the Term Loan Commitments have terminated, on the
outstanding principal amount of such Lender’s Term Loan), regardless of usage. The
facility fee shall accrue at all times during the Availability Period (and
thereafter so long as any Term Loans remain outstanding), including at any time
during which one or more of the conditions in Article IV is not met, and shall be
due and payable quarterly in arrears on the last Business Day of each March, June,
September and December, commencing with the first such date to occur after the
Closing Date, and on the Maturity Date (and, if applicable, thereafter on demand).
The facility fee shall be calculated quarterly in arrears, and if there is any
change in the Applicable Margin during any quarter, the actual daily amount shall be
computed and multiplied by the Applicable Margin separately for each period during
such quarter that such Applicable Margin was in effect.

     2.6.2 Other Fees. (a) Borrower shall pay the fees in the amounts and
at the times specified in the Fee Letter. Such fees shall be fully earned when paid
and shall not be refundable for any reason whatsoever.

     (b) Borrower shall pay to Lenders such fees as shall have been
separately agreed upon in writing in the amounts and at the times so
specified. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

     2.7
Computation of Interest and Fees. All computations of interest for Base Rate Loans when the
Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis of a year of
365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and
interest shall be made on the basis of a 360-day year and actual days elapsed (which results in
more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).
Interest shall accrue on each Term Loan from the date on which such Term Loan is made, and shall
not accrue on any Term Loan, or any portion thereof, for the day on which such Term Loan or such
portion is paid. Each determination by Administrative Agent of an interest rate or fee hereunder
shall be conclusive and binding for all purposes, absent demonstrable error.

     2.8 Evidence of Debt. The Term Loan made by each Lender shall be evidenced by one or more accounts
or records maintained by such Lender and by Administrative Agent in the ordinary course of
business. The accounts or records maintained by Administrative Agent and each Lender shall be
conclusive absent demonstrable error of the amount of the amount of the Term Loan advanced by
Lenders to Borrower and the interest and payments thereon. Any failure to so record or any error
in doing so shall not, however, limit or otherwise affect the obligation of Borrower hereunder to
pay any amount owing with respect to the Obligations. In

 

33

 

the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of Administrative Agent
in respect of such matters, the accounts and records of Administrative Agent shall control in the
absence of demonstrable error. Upon the request of any Lender made through Administrative Agent,
Borrower shall execute and deliver to such Lender (through Administrative Agent) a Note, which
shall evidence such Lender’s Term Loan in addition to such accounts or records. Each Lender may
attach schedules to its Note and endorse thereon the date, Type (if applicable) and amount of its
advances on its Term Loan and payments with respect thereto.

     2.9 Payments Generally; Administrative Agent’s Clawback.

     2.9.1 General. All payments to be made by Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein, all payments by Borrower hereunder shall be made to
Administrative Agent, for the account of the respective Lenders to which such payment is
owed, at Administrative Agent’s Office in Dollars and in immediately available funds not
later than 12:00 noon on the date specified herein. Administrative Agent will promptly
distribute to each Lender its Applicable Percentage (or other applicable share as provided
herein) of such payment in like funds as received by wire transfer to such Lender’s Lending
Office. All payments received by Administrative Agent after 12:00 noon shall be deemed
received on the next succeeding Business Day and any applicable interest or fee shall
continue to accrue. If any payment to be made by Borrower shall come due on a day other
than a Business Day, payment shall be made on the next following Business Day, and such
extension of time shall be reflected in computing interest or fees, as the case may be.

     2.9.2 Payments by Borrower; Presumptions by Administrative Agent. Unless
Administrative Agent shall have received notice from Borrower prior to the date on which any
payment is due to Administrative Agent for the account of the applicable Lenders hereunder
that Borrower will not make such payment, Administrative Agent may assume that Borrower has
made such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the applicable Lenders the amount due. In such event, if Borrower
has not in fact made such payment, then each Lender, as the case may be, severally agrees to
repay to Administrative Agent forthwith on demand the amount so distributed to such Lender,
in immediately available funds with interest thereon, for each day from the date such amount
is distributed to it to the date of payment to Administrative Agent, at the Overnight Rate.
A notice by Administrative Agent to any Lender or Borrower with respect to any amount owing
under this Section 2.9.2 shall be conclusive, absent demonstrable error.

     2.9.3 Obligations of Lenders Several. The obligations of Lenders hereunder to
make Term Loans and to make payments pursuant to Section 10.4.3 are several and not
joint. The failure of any Lender to make an advance under its Term Loan Commitment or to
make any payment under Section 10.4.3 on any date required hereunder shall not
relieve any other Lender of its corresponding obligation to do so on such date, and no

 

34

 

Lender shall be responsible for the failure of any other Lender to so make any advance
under its Term Loan Commitment or to make its payment under Section 10.4.3.

     2.9.4 Funding Source. Subject to Section 3.6.1, nothing herein shall
be deemed to obligate any Lender to obtain the funds for any portion of its Term Loan in any
particular place or manner or to constitute a representation by any Lender that it has
obtained or will obtain the funds for any portion of its Term Loan in any particular place
or manner.

     2.10 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on its Term
Loan, resulting in such Lender’s receiving payment of a proportion of the aggregate amount of all
Term Loans and accrued interest thereon greater than its pro rata share thereof as
provided herein, then Lender receiving such greater proportion shall (a) notify Administrative
Agent of such fact, and (b) purchase (for cash at face value) participations in the Term Loans of
the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all
such payments shall be shared by Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Term Loans and other amounts owing them,
provided, that:

     (i) if any such participations or subparticipations are purchased and all or
any portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent
of such recovery, without interest; and

     (ii) the provisions of this Section shall not be construed to apply to (x) any
payment made by Borrower pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in its Term Loan to any assignee or
participant, other than to Borrower or any Subsidiary (as to which the provisions of
this Section shall apply).

     Borrower consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against Borrower rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of Borrower in the amount of such participation.

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.1 Taxes.

     3.1.1 Payments Free of Taxes. Any and all payments by or on account of any
obligation of Borrower hereunder or under any other Loan Document shall be made free and
clear of and without reduction or withholding for any Indemnified Taxes or Other

 

35

 

Taxes, provided, that if Borrower shall be required by applicable law to deduct any
Indemnified Taxes (including any Other Taxes) from such payments, then (a) the sum payable
shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) Administrative Agent or
Lender, as the case may be, receives an amount equal to the sum it would have received had
no such deductions been made, (b) Borrower shall make such deductions and (c) Borrower shall
timely pay the full amount deducted to the relevant Governmental Authority in accordance
with applicable law.

     3.1.2 Payment of Other Taxes by Borrower. Without limiting the provisions of
Section 3.1.1, Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

     3.1.3 Indemnification by Borrower. Borrower shall indemnify Administrative
Agent and each Lender, within ten (10) days after demand therefor, for the full amount of
any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) paid by Administrative
Agent or such Lender, as the case may be, and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered to
Borrower by a Lender (with a copy to Administrative Agent), or by Administrative Agent on
its own behalf or on behalf of a Lender, shall be conclusive absent demonstrable error.

     3.1.4 Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by Borrower to a Governmental Authority, Borrower shall
deliver to Administrative Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to Administrative Agent.

     3.1.5 Status of Lenders. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which Borrower is
resident for tax purposes or is otherwise subject to tax, or any treaty to which such
jurisdiction is a party or which otherwise benefits such Lender, with respect to payments
hereunder or under any other Loan Document shall deliver to Borrower (with a copy to
Administrative Agent), at the time or times prescribed by applicable law or reasonably
requested by Borrower or Administrative Agent, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if requested by
Borrower or Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by Borrower or Administrative Agent as will enable
Borrower or Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

 

36

 

     Without limiting the generality of the foregoing, if Borrower is resident for tax purposes in
the United States or is otherwise subject to tax in the United States, any Foreign Lender shall
deliver to Borrower and Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the request of Borrower or Administrative Agent,
but only if such Foreign Lender is legally entitled to do so), whichever of the following is
applicable:

     (a) duly completed copies of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States is a
party;

     (b) duly completed copies of Internal Revenue Service Form W-8ECI;

     (c) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (i) a certificate to the effect
that such Foreign Lender is not (A) a “bank” within the meaning of section
881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of Borrower within the
meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign
corporation” described in section 881(c)(3)(C) of the Code and (ii) duly completed
copies of Internal Revenue Service Form W-8BEN; or

     (d) any other form prescribed by applicable law as a basis for claiming
exemption from or a reduction in United States Federal withholding tax duly
completed together with such supplementary documentation as may be prescribed by
applicable law to permit Borrower to determine the withholding or deduction required
to be made.

     Each Lender shall promptly (i) notify Administrative Agent of any change in circumstances
which would modify or render invalid any claimed exemption from or reduction of Taxes or Other
Taxes, and (ii) take such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the re-designation of its
Lending Office) to avoid any requirement of applicable Law that Borrower make any deduction or
withholding for taxes from amounts payable to such Lender. Additionally, Borrower shall promptly
deliver to any Lender, as such Lender shall reasonably request, on or prior to the Closing Date,
and in a timely fashion thereafter, such documents and forms required by any relevant taxing
authorities under the Laws of any jurisdiction, duly executed and completed by Borrower, as are
required to be furnished by such Lender under such Laws in connection with any payment by such
Lender of Indemnified Taxes or Other Taxes, or otherwise in connection with the Loan Documents,
with respect to such jurisdiction.

     3.1.6 Exemption Representation.

     (a) Each Lender represents and warrants (such Lender’s “Exemption
Representation”) to Borrower that, as of the date of this Agreement or, in the case of a
Person that becomes a Lender after the Closing Date, as of the date such Person becomes

 

37

 

a party hereto, except as specified in writing to Administrative Agent and Borrower prior to
the date of the applicable Exemption Representation, it is entitled to receive payments from
Borrower hereunder without any reduction or withholding in respect of any Indemnified Taxes
or Other Taxes and without any amount being required to be paid by Borrower pursuant to
Section 3.1.2.

     (b) Notwithstanding any other provision of this Agreement, Borrower shall not be
obligated to pay any amount under this Section 3.1 to, or for the benefit of, any
Lender to the extent that such amount would not have been required to be paid if (i) such
Lender’s Exemption Representation had been accurate or (ii) such Lender had complied with
its obligations under Section 3.1.4.

     3.1.7 Treatment of Certain Refunds. If Administrative Agent or any Lender
determines, in its sole discretion, that it has received a refund of any Taxes or Other
Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has
paid additional amounts pursuant to this Section, it shall pay to Borrower an amount equal
to such refund (but only to the extent of indemnity payments made, or additional amounts
paid, by Borrower under this Section with respect to the Taxes or Other Taxes giving rise to
such refund), net of all reasonable out-of-pocket expenses of Administrative Agent or such
Lender, as the case may be, and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund), provided, that Borrower, upon
the request of Administrative Agent or such Lender, agrees to repay the amount paid over to
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to Administrative Agent or such Lender in the event Administrative Agent or such
Lender is required to repay such refund to such Governmental Authority. This subsection
shall not be construed to require Administrative Agent or any Lender to make available its
tax returns (or any other information relating to its taxes that it deems confidential) to
Borrower or any other Person.

     3.2
Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending
Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates
based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on
the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to Borrower through Administrative Agent,
any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate
Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies Administrative Agent
and Borrower that the circumstances giving rise to such determination no longer exist. Upon
receipt of such notice, Borrower shall, upon demand from such Lender (with a copy to Administrative
Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period therefor or on such earlier date on which such
Lender may not lawfully continue to maintain such Eurodollar Rate Loans. Upon any such prepayment
or conversion, Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

38

 

     3.3 Inability to Determine Rates. If Required Lenders determine that for any reason in connection
with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof that (a)
Dollar deposits are not being offered to banks in the London interbank eurodollar market for the
applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and reasonable
means do not exist for determining the Eurodollar Rate for any requested Interest Period with
respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the
cost to such Lenders of funding such Eurodollar Rate Loan, Administrative Agent will promptly so
notify Borrower and each Lender. Thereafter, the obligation of Lenders to make or maintain
Eurodollar Rate Loans shall be suspended until Administrative Agent (upon the instruction of
Required Lenders) revokes such notice. Upon receipt of such notice, Borrower may revoke any
pending request for a conversion to or continuation of Eurodollar Rate Loans.

     3.4 Increased Costs; Reserves on Eurodollar Rate Loans.

          3.4.1
Increased Costs Generally. If any Change in Law shall:

     (a) impose, modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with or
for the account of, or credit extended or participated in by, any Lender (except any
reserve requirement reflected in the Eurodollar Rate);

     (b) subject any Lender to any tax of any kind whatsoever with respect to this
Agreement or any Eurodollar Rate Loan made by it, or change the basis of taxation of
payments to such Lender in respect thereof (except for Indemnified Taxes or Other
Taxes covered by Section 3.1 and the imposition of, or any change in the
rate of, any Excluded Tax payable by such Lender); or

     (c) impose on any Lender or the London interbank market any other condition,
cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any Eurodollar Rate
Loan), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether
of principal, interest or any other amount) then, upon request of such Lender, Borrower will pay to
such Lender such additional amount or amounts as will compensate such Lender for such additional
costs incurred or reduction suffered.

     3.4.2 Capital Requirements. If any Lender determines that any Change in Law
affecting such Lender or any Lending Office of such Lender or such Lender’s holding company,
if any, regarding capital requirements has or would have the effect of reducing the rate of
return on such Lender’s capital or on the capital of such Lender’s holding company, if any,
as a consequence of this Agreement, the Term Loan made by such
Lender to a level below that which such Lender or such Lender’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s

 

39

 

policies
and the policies of such Lender’s holding company with respect to capital adequacy), then
from time to time Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction suffered.

     (a) Certificates for Reimbursement. A certificate of a Lender setting
forth in reasonable detail the amount or amounts necessary to compensate such Lender
or its holding company, as the case may be, as specified in subsection (a)
or (b) of this Section and delivered to Borrower shall be conclusive absent
demonstrable error. Borrower shall pay such Lender the amount shown as due on any
such certificate within 15 days after receipt thereof.

     (b) Delay in Requests. Failure or delay on the part of any Lender to
demand compensation pursuant to the foregoing provisions of this Section shall not
constitute a waiver of such Lender’s right to demand such compensation,
provided, that Borrower shall not be required to compensate a Lender
pursuant to the foregoing provisions of this Section for any increased costs
incurred or reductions suffered more than six (6) months prior to the date that such
Lender notifies Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s intention to claim compensation therefor (except
that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the six-month period referred to above shall be extended to
include the period of retroactive effect thereof).

     (c) Reserves on Eurodollar Rate Loans. Borrower shall pay to each
Lender, as long as such Lender shall be required to maintain reserves with respect
to liabilities or assets consisting of or including Eurocurrency funds or deposits
(currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of
such reserves allocated to such Eurodollar Rate Loan by such Lender (as determined
by such Lender in good faith, which determination shall be conclusive), which shall
be due and payable on each date on which interest is payable on such Eurodollar Rate
Loan, provided Borrower shall have received at least fifteen (15) days’ prior notice
(with a copy to Administrative Agent) of such additional interest from such Lender.
If a Lender fails to give notice fifteen (15) days prior to the relevant Interest
Payment Date, such additional interest shall be due and payable fifteen (15) days
from receipt of such notice.

     3.5 Compensation for Losses. Borrower agrees that it will, from time to time, compensate each
Lender for and hold each Lender harmless from any loss, cost or expense incurred by such Lender as
a result of:

     (a) any continuation, conversion, payment or prepayment of any Eurodollar Rate
Loan on a day other than the last day of the Interest Period
therefor (whether voluntary, mandatory, automatic, by reason of acceleration,
or otherwise);

 

40

 

     (b) any failure by Borrower (for a reason other than the failure of such Lender
to make a an advance of a portion of its Term Loan) to prepay, borrow, continue or
convert any Eurodollar Rate Loan on the date or in the amount notified by Borrower;
or

     (c) any assignment of a Eurodollar Rate Loan on a day other than the last day
of the Interest Period therefor as a result of a request by Borrower pursuant to
Section 10.12;

including any loss or expense arising from the liquidation or reemployment of funds obtained by it
to maintain such Eurodollar Rate Loan or from fees payable to terminate the deposits from which
such funds were obtained. Borrower shall also pay any customary administrative fees charged by
such Lender in connection with the foregoing.

For purposes of calculating amounts payable by Borrower to Lenders under this Section 3.5,
each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar
Rate for such Eurodollar Rate Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.

Any Lender requesting compensation pursuant to this Section 3.5 shall deliver to Borrower
(with a copy to Administrative Agent) a certificate setting forth in reasonable detail a
calculation of the amount demanded and any such certificate shall be conclusive absent demonstrable
error. Borrower shall pay the applicable Lender the amount shown as due on any such certificate
within fifteen (15) days after receipt thereof.

3.6 Mitigation Obligations; Replacement of Lenders.

     3.6.1 Designation of a Different Lending Office. If any Lender requests
compensation under Section 3.4, or Borrower is required to pay any additional amount
to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 3.1, or if any Lender gives a notice pursuant to Section 3.2, then
such Lender shall use reasonable efforts to designate a different Lending Office for funding
or booking its Term Loan or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the reasonable judgment of such Lender, such
designation or assignment (a) would eliminate or reduce amounts payable pursuant to
Section 3.1 or 3.4, as the case may be, in the future, or eliminate the need
for the notice pursuant to Section 3.2, as applicable, and (b) in each case, would
not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

     3.6.2 Replacement of Lenders. If any Lender requests compensation under
Section 3.4, or if Borrower is required to pay any additional amount to any Lender
or any

 

41

 

Governmental Authority for the account of any Lender pursuant to Section 3.1,
Borrower may replace such Lender in accordance with Section 10.12.

     3.6.3 Delay in Request. Failure or delay on the part of Administrative Agent or
any Lender to demand compensation pursuant to Section 3.1, 3.4 or
3.5 shall not constitute a waiver of such Person’s right to demand such
compensation, provided that Borrower shall not be required to compensate such Person
pursuant to any such Section for any Indemnified Taxes, Other Taxes, increased cost,
reduction in return, funding loss or other amount (any of the foregoing, a “Compensation
Amount”) incurred or suffered more than six (6) months prior to the date that such
Person notified Borrower of the Change in Law or other event giving rise to such
Compensation Amount and of such Person’s intention to claim compensation therefor (except
that, if the Change in Law or other event giving rise to such Compensation Amount is
retroactive, then the six (6) month period referred to above shall be extended to include
the period of retroactive effect thereof).

     3.7 Survival. All of Borrower’s obligations under this Article III shall survive the
termination of the Term Loan Commitments and the repayment of all Obligations hereunder.

ARTICLE IV

CONDITIONS PRECEDENT TO THE TERM LOANS

     4.1 Conditions of Initial Term Loan. The obligation of each Lender to make its initial Term
Loan hereunder is subject to satisfaction of the following conditions precedent:

     4.1.1 Documents. Administrative Agent’s receipt of the following, each of which
shall be originals or telecopies (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer, each dated the Closing Date (or,
in the case of certificates of governmental officials, a recent date before the Closing
Date) and each in form and substance reasonably satisfactory to Administrative Agent and
each Lender:

     (a) executed counterparts of this Agreement sufficient in number for
distribution to Administrative Agent and Borrower;

     (b) a Note executed by Borrower in favor of each Lender requesting a Note;

     (c) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers as Administrative Agent may
reasonably require evidencing the identity, authority and capacity of the
Responsible Officers authorized to execute and deliver the Loan Documents on behalf
of Borrower;

 

42

 

     (d) such documents and certifications as Administrative Agent may reasonably
require to evidence that Borrower is duly organized or formed in the jurisdiction of
its organization or formation;

     (e) favorable opinions of Mayer, Brown, Rowe & Maw LLP, as counsel to Borrower,
addressed to Administrative Agent and each Lender, as to such matters concerning
Borrower and the Loan Documents as Administrative Agent may reasonably request;

     (f) a certificate of a Responsible Officer either (i) attaching copies of all
consents, licenses and approvals required in connection with the execution, delivery
and performance by Borrower, and the validity against Borrower, of the Loan
Documents, and such consents, licenses and approvals shall be in full force and
effect; or (ii) stating that no such consents, licenses or approvals are so
required;

     (g) a certificate signed by a Responsible Officer certifying (i) that no
Default shall exist or would result from the proposed Term Loans or the application
of the proceeds thereof; (ii) that the representations and warranties of Borrower
contained in Article V are true and correct in all material respects on and
as of the Closing Date, (iii) that there has been no event or circumstance since the
date of the Audited Financial Statements that has had or would be reasonably
expected to have, either individually or in the aggregate, a Material Adverse
Effect; and (iv) the current Moody’s Rating, S&P Rating, and Fitch Rating;

     (h) evidence, reasonably satisfactory to Administrative Agent, of the closing
and consummation of Catellus Acquisition prior to or concurrently with the funding
of the Term Loans hereunder; and

     (i) such other assurances, certificates, documents, consents or opinions as
Administrative Agent or any Required Lender reasonably may require.

     4.1.2 Fees. Any fees required to be paid on or before the Closing Date shall have
been paid.

     4.1.3 Expenses. Unless waived by Administrative Agent, Borrower shall have paid all
fees, charges and disbursements of counsel to Administrative Agent to the extent invoiced
prior to or on the Closing Date, plus such additional amounts of such fees, charges
and disbursements as shall constitute its reasonable estimate of such fees, charges and
disbursements incurred or to be incurred by it through the closing proceedings
(provided that such estimate shall not thereafter preclude a final settling of
accounts between Borrower and Administrative Agent).

     4.1.4 Closing Deadline. The Closing Date shall have occurred on or before September 30, 2005.

 

43

 

Without limiting the generality of the provisions of Section 9.4, for purposes of
determining compliance with the conditions specified in this Section 4.1, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless Administrative Agent shall have received notice
from such Lender prior to the proposed Closing Date specifying its objection thereto.

     4.2 Conditions to all Term Loans. The obligation of each Lender to make any advance under its Term
Loan Commitment is subject to satisfaction of the following conditions precedent:

     4.2.1 Representations and Warranties. The representations and warranties of
Borrower contained in Article V shall be true and correct in all material respects
on and as of the applicable Advance Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and
correct in all material respects as of such earlier date, and except that for purposes of
this Section 4.2, the representations and warranties contained in subsections
(a) and (b) of Section 5.5 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.1.

     4.2.2 Default. No Default shall exist or would result from such proposed Term
Loans or the application of the proceeds thereof.

     4.2.3 Delivery of Funding Notice. Administrative Agent shall have received a
Funding Notice in accordance with the requirements hereof.

Each Funding Notice submitted by Borrower shall be deemed to be a representation and warranty that
the conditions specified in Sections 4.2.1 and 4.2.2 have been satisfied on and as
of the applicable Advance Date.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Administrative Agent and Lenders that:

     5.1 Existence, Qualification and Power; Compliance with Laws. Each Company (a) is duly organized
or formed, validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and
carry on its business and (ii) in the case of Borrower, execute, deliver and perform its
obligations under the Loan Documents, (c) is duly qualified and is licensed and in good standing
under the Laws of each jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, and (d) is in compliance with all
Laws; except in each case referred to in clause (b)(i), (c) or (d) above,
to the extent that failure to do so could not reasonably be expected to have a Material Adverse
Effect.

 

44

 

     5.2 Authorization; No Contravention. The execution, delivery and performance by Borrower of each
Loan Document have been duly authorized by all necessary corporate or other organizational action,
and do not and will not: (a) contravene the terms of Borrower’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or the creation of any Lien under, or
require any payment to be made under (i) any Contractual Obligation to which Borrower is a party or
affecting Borrower or the properties of any Company or (ii) any order, injunction, writ or decree
of any Governmental Authority or any arbitral award to which Borrower or its property is subject;
or (c) violate any Law. Each Company is in compliance with all Contractual Obligations referred to
in clause (b)(i), except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

     5.3 Governmental Authorization; Other Consents. No approval, consent, exemption, authorization, or
other action by, or notice to, or filing with, any Governmental Authority or any other Person is
necessary or required in connection with the execution, delivery or performance by, or enforcement
against, Borrower of this Agreement or any other Loan Document.

     5.4 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by Borrower. This Agreement constitutes,
and each other Loan Document when so delivered will constitute, a legal, valid and binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, subject to
applicable Debtor Relief Laws and general principles of equity.

5.5 Financial Statements.

     (a) The Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; (ii) fairly present the financial condition of the
Companies as of the date thereof and their results of operations for the period
covered thereby in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; and (iii) show (either
in the text thereof or the notes thereto) all material Liabilities of the Companies
as of the date thereof.

     (b) The unaudited consolidated balance sheet of the Companies dated March 31,
2005, and the related consolidated statements of income or operations, shareholders’
equity and cash flows for the fiscal quarter ended on that date (i) were prepared in
accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein, and (ii) fairly present the financial
condition of the Companies as of the date thereof and their results of operations
for the period covered thereby, subject, in the case of clauses (i) and
(ii), to the absence of footnotes and to normal year-end audit adjustments.

     5.6 Litigation. As of the Closing Date, there are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of Borrower after due and diligent investigation, threatened
or contemplated, at law, in equity, in arbitration or before any Governmental

 

45

 

Authority, by or
against any Company or against any Company’s properties or revenues that (a) purport to affect or
pertain to this Agreement or any other Loan Document, or any of the transactions contemplated
hereby, or (b) except as specifically disclosed in Schedule 5.6, either individually or in
the aggregate, if determined adversely, could reasonably be expected to have a Material Adverse
Effect.

     5.7 No Default. No Company is in default under or with respect to any Contractual Obligation that
could, either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. No Default has occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

     5.8 Ownership of Property; Liens. Each Company has good record and marketable title in fee simple
to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of
its business, except for such defects in title as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     5.9 Environmental Compliance. Each Company conducts in the ordinary course of business a review of
the effect of existing Environmental Laws and claims alleging potential Liability or responsibility
for violation of any Environmental Law on their respective businesses, operations and properties,
and as a result thereof the Companies have reasonably concluded that, except as specifically
disclosed in Schedule 5.9, such Environmental Laws and claims could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

     5.10 Insurance. The properties of each Company are insured with financially sound and reputable
insurance companies not Affiliates of Borrower, in such amounts, with such deductibles and covering
such risks as are customarily carried by companies engaged in similar businesses and owning similar
properties in localities where such Company conducts business; provided that any Company
may maintain insurance with an insurance company that is an Affiliate of Borrower, to the extent
such insurance company is reasonably acceptable to Administrative Agent and to the extent such
self-insurance is permitted by the jurisdiction under which such Company operates, solely for the
purpose of covering up to $10,000,000 of any applicable insurance claim.

     5.11 Taxes. Each Company has filed all Federal and other material state, provincial, and other Tax
returns and reports required to be filed, and has paid, collected, withheld and remitted all
Federal and other material state, provincial, and other material Taxes, assessments, fees and other
governmental charges levied or imposed upon it or its properties, income or assets otherwise due
and payable, or which it has been required to collect or withhold and remit, except those which
are being contested in good faith by appropriate proceedings diligently conducted and for which
adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment
against any Company that would, if made, have a Material Adverse Effect.

 

46

 

     5.12 Pension Law Compliance.

     (a) Each Plan is in compliance in all material respects with the applicable
provisions of applicable Laws. Each Plan that is intended to qualify under Section
401(a) of the Code has received a favorable determination or opinion letter from the
IRS or an application for such a letter is currently being processed by the IRS with
respect thereto and, to the best knowledge of Borrower, nothing has occurred which
would prevent, or cause the loss of, such qualification. Borrower and each ERISA
Affiliate have made all required contributions to each Pension Plan subject to
Section 412 of the Code, and no application for a funding waiver or an extension of
any amortization period pursuant to Section 412 of the Code has been made with
respect to any such Pension Plan.

     (b) There are no pending or, to the best knowledge of Borrower, threatened
claims, actions or lawsuits, or action by any Governmental Authority, with respect
to any Plan that could reasonably be expected to have a Material Adverse Effect.
Borrower has no knowledge of any prohibited transaction (within the meaning of
Section 4975 of the Code or Section 406 of ERISA) or violation of the fiduciary
responsibility rules (within the meaning of Section 404 or 405 of ERISA) with
respect to any Plan that has resulted or could reasonably be expected to result in a
Material Adverse Effect.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii)
neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to
incur, any Liability under Title IV of ERISA with respect to any Pension Plan (other
than premiums due and not delinquent under Section 4007 of ERISA); (iii) neither
Borrower nor any ERISA Affiliate has incurred any unsatisfied, or reasonably expects
to incur any, Liability (and no event has occurred which, with the giving of notice
under Section 4219 of ERISA, would result in such Liability) under Section 4201 or
4243 of ERISA with respect to a Multiemployer Plan; and (iv) neither Borrower nor
any ERISA Affiliate has engaged in a transaction that reasonably could be expected
to be subject to Sections 4069 or 4212(c) of ERISA.

     5.13 Margin Regulations; Investment Company Act; Public Utility Holding Company Act.

     (a) Borrower is not engaged nor will it become engaged, principally or as one
of its important activities, in the business of purchasing or carrying margin stock
(within the meaning of Regulation U issued by the FRB), or extending credit for the
purpose of purchasing or carrying margin stock.

     (b) No Company nor any Person Controlling any Company (i) is a “holding
company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a
“holding company” or of a “subsidiary company” of a “holding company,” within the
meaning of the Public Utility Holding Company Act of

 

47

 

1935, or (ii) is or is required
to be registered as an “investment company” under the Investment Company Act of
1940.

     5.14 Disclosure. Borrower has disclosed to Administrative Agent and Lenders all agreements,
instruments and corporate or other restrictions to which any Company is subject, and all other
matters known to it, that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect. No report, financial statement, certificate or other information
furnished (whether in writing or orally) by or on behalf of Borrower to Administrative Agent or
Lenders in connection with the transactions contemplated hereby and the negotiation of this
Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or
supplemented by other information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading in any material respect; provided
that, with respect to projected financial information, Borrower represents only that such
information was prepared in good faith based upon assumptions believed to be reasonable at the
time.

     5.15 Compliance with Laws. Each Company is in compliance in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its
properties, except in such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings diligently
conducted or (b) the failure to comply therewith, either individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

     5.16 Solvency. Borrower is, and after giving effect to all Obligations hereunder will be, Solvent.

     5.17 Exemption from ERISA; Plan Assets. The assets of each Company are not “plan assets” as
defined in 29 C.F.R. § 2510.3-101(a)(1) (or any successor regulation) of any Plan.

ARTICLE VI

AFFIRMATIVE COVENANTS

So long as any Lender shall have any Commitment hereunder or any Term Loan or other Obligation
shall remain unpaid or unsatisfied:

     6.1 Financial Statements. Borrower shall deliver to Administrative Agent, in form and detail
satisfactory to Administrative Agent:

     (a) as soon as available, but in any event within ninety (90) days after the
end of each fiscal year of Borrower (commencing with the fiscal year ended December
31, 2005), a consolidated balance sheet of the Companies as at the end of such
fiscal year, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year, setting forth in each case
in comparative form the figures for the previous fiscal year, all in

 

48

 

reasonable
detail, audited and accompanied by a report and opinion of a Registered Public
Accounting Firm of nationally recognized standing reasonably acceptable to
Administrative Agent, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and applicable Securities Laws; and

     (b) as soon as available, but in any event within forty-five (45) days after
the end of each of the first three (3) fiscal quarters of each fiscal year of
Borrower (commencing with the fiscal quarter ended June 30, 2005), a consolidated
balance sheet of the Companies as at the end of such fiscal quarter, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows
for such fiscal quarter and for the portion of Borrower’s fiscal year then ended,
setting forth in each case in comparative form a balance sheet as of the end of the
corresponding fiscal quarter of the previous fiscal year and statements of income or
operation and cash flows the corresponding portion of the previous fiscal year, all
in reasonable detail, certified by a Responsible Officer as fairly presenting the
financial condition, results of operations, shareholders’ equity and cash flows of
the Companies, subject only to normal year-end audit adjustments and the absence of
footnotes.

As to any information contained in materials furnished pursuant to Section 6.2(d), Borrower
shall not be separately required to furnish such information under clause (a) or
(b) above, but the foregoing shall not be in derogation of the obligation of Borrower to
furnish the information and materials described in clauses (a) and (b) above at the
times specified therein.

     6.2 Certificates; Other Information. Borrower shall deliver to Administrative Agent, in form and
detail satisfactory to Administrative Agent:

     (a) concurrently with the delivery of each set of financial statements referred
to in Section 6.1(a), an opinion from a Registered Public Accounting Firm of
nationally recognized standing to the effect that such financial statements were
prepared in accordance with GAAP and present fairly, in all material respects, the
consolidated financial condition of Borrower as of the date thereof and the
consolidated results of operations of Borrower for the fiscal year then ended;

     (b) concurrently with the delivery of each set of financial statements referred
to in Sections 6.1(a) and (b), a duly completed Compliance
Certificate signed by a Responsible Officer;

     (c) promptly after any request by Administrative Agent, copies of any detailed
audit reports, management letters or recommendations submitted to the board of
trustees (or the audit committee of the board of trustees) of Borrower by
independent accountants in connection with the accounts or books of Borrower or any
other Company, or any audit of any of them;

 

49

 

     (d) promptly after filing, true, correct, and complete copies of all material
reports or filings filed by or on behalf of any Company with any Governmental
Authority (including copies of each Form 10-K, Form 10-Q, and Form S-8 filed by or
on behalf of any Company with the SEC); and

     (e) promptly, such additional information regarding the business, financial or
corporate affairs of any Company, or compliance with the terms of the Loan
Documents, as Administrative Agent may from time to time reasonably request.

Documents required to be delivered pursuant to Section 6.1(a) or (b) or Section
6.2(d) (to the extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on
the date (i) on which Borrower posts such documents, or provides a link thereto on Borrower’s
website on the Internet at the website address listed on Schedule 10.2; or (ii) on which
such documents are posted on Borrower’s behalf on an Internet or intranet website, if any, to which
Administrative Agent and Lenders have access (whether a commercial, third-party website or whether
sponsored by Administrative Agent); provided that: (i) Borrower shall deliver paper copies
of such documents to Administrative Agent that requests Borrower to deliver such paper copies until
a written request to cease delivering paper copies is given by Administrative Agent and (ii)
Borrower shall notify Administrative Agent (by telecopier or electronic mail) of the posting of any
such documents and provide to Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every
instance Borrower shall be required to provide paper copies of the Compliance Certificates required
by Section 6.2(b) to Administrative Agent. Except for such Compliance Certificates,
Administrative Agent shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to monitor compliance by
Borrower with any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

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

 

50

 

Investor.” Notwithstanding the
foregoing, Borrower shall have no obligation to mark Borrower Materials “PUBLIC”.

     6.3 Notices. Borrower shall promptly notify Administrative Agent:

     (a) of the occurrence of any Default;

     (b) of any matter that has resulted or could reasonably be expected to result
in a Material Adverse Effect, including: (i) breach or non-performance of, or any
default under, a Contractual Obligation of any Company; (ii) any dispute,
litigation, investigation, proceeding or suspension between any Company and any
Governmental Authority; or (iii) the commencement of, or any material development
in, any litigation or proceeding affecting any Company, including pursuant to any
applicable Environmental Laws;

     (c) of the occurrence of any ERISA Event;

     (d) of any material change in accounting policies or financial reporting
practices by Borrower or any Consolidated Subsidiary (except to the extent disclosed
in financial statements provided pursuant to Section 6.1, including the
footnotes to such financial statements);

     (e) of the occurrence of any Internal Control Event; and

     (f) promptly upon receipt by Borrower of notice thereof, and in any event
within five (5) Business Days after any change in the Moody’s Rating, the S&P
Rating, or the Fitch Rating, notice of such change.

Each notice pursuant to this Section 6.3 shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein and stating what
action Borrower has taken and proposes to take with respect thereto. Each notice pursuant to
Section 6.3(a) shall describe with particularity any and all provisions of this Agreement
and any other Loan Document that have been breached.

     6.4 Payment of Obligations. Borrower shall, and shall cause each other Company to, pay and discharge as the same shall
become due and payable, all its Liabilities (including tax Liabilities), except to the extent (a)
the same are being contested in good faith by appropriate proceedings diligently conducted and
adequate reserves in accordance with GAAP are being maintained therefor, or (b) the failure to pay
and discharge Liabilities could not reasonably be expected to result in a Material Adverse Effect.

     6.5 Preservation of Existence, Etc. Borrower shall, and shall cause each other Company to: (a)
preserve, renew and maintain in full force and effect its legal existence and good standing under
the Laws of the jurisdiction of its organization except in a transaction permitted by Section
7.4 or 7.5; (b) take all reasonable action to maintain all rights, privileges, permits,
licenses and franchises necessary or desirable in the normal conduct of its business,

 

51

 

except to the
extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;
and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks,
the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

     6.6 Maintenance of Properties. Borrower shall, and shall cause each other Company to: (a)
maintain, preserve and protect all of its material properties and equipment necessary in the
operation of its business in good working order and condition, ordinary wear and tear excepted; and
(b) make all necessary repairs thereto and renewals and replacements thereof, in each case except
where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

     6.7 Maintenance of Insurance. Borrower shall, and shall cause each other Company to, maintain with
financially sound and reputable insurance companies not Affiliates of Borrower, insurance in such
amounts, with such deductibles and covering such risks as is customarily carried by companies
engaged in similar businesses and owning similar properties in localities where such Company
conducts business; provided that any Company may maintain insurance with an insurance
company that is an Affiliate of Borrower, to the extent such insurance company is reasonably
acceptable to Administrative Agent and to the extent such self-insurance is permitted by the
jurisdiction under which such Company operates, solely for the purpose of covering up to
$10,000,000 of any applicable insurance claim.

     6.8 Compliance with Laws. Borrower shall, and shall cause each other Company to, comply in all
material respects with the requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in which (a) such
requirement of Law or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted, or (b) the failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

     6.9 Books and Records. Borrower shall, and shall cause each other Company to, maintain proper books of record and
account, in which true and correct entries are made that are sufficient to prepare Borrower’s
financial statements in conformity with GAAP consistently applied.

     6.10 Inspection Rights. Upon reasonable request, and subject to Section 10.7, Borrower
shall, and shall cause each other Company to, allow Administrative Agent (or its Related Parties
who may be accompanied by a Related Party of one (1) or more Lenders) to inspect any of its
properties, to review reports, files, and other records and to make and take away copies thereof,
and to discuss (provided that Borrower is given the opportunity to be present for such discussions)
any of its affairs, conditions, and finances with its directors, officers, employees, or
representatives from time to time upon reasonable notice, during normal business hours;
provided that unless a Default has occurred and is continuing and except in the case of
Administrative Agent and its Related Parties, such inspections shall be at the applicable Lender’s
sole cost and expense.

 

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     6.11 Use of Proceeds. Borrower shall use the proceeds of the Term Loans solely to pay all or a
portion of the Purchase Price (and the related fees and expenses) of the Catellus Acquisition.

     6.12 REIT Status. Borrower shall, at all times, qualify as a REIT (including its organization and
method of operations and those of its Consolidated Subsidiaries).

ARTICLE VII

NEGATIVE COVENANTS

So long as any Lender shall have any Commitment hereunder or any Term Loan or other Obligation
shall remain unpaid or unsatisfied:

     7.1 Investments. Borrower shall not permit, as of any date, the Companies’ aggregate direct and
indirect Investments in raw land, Non-Industrial Properties, and Refrigerated Warehouse Properties
(including the Companies’ Share of all such Investments of Unconsolidated Affiliates of the
Companies) to exceed in the aggregate twenty-five percent (25%) of Total Asset Value.

     7.2 Secured Indebtedness. Borrower shall not permit the aggregate amount of all Secured Debt
(including the Companies’ Share of all Secured Debt of Unconsolidated Affiliates of the Companies)
at any time outstanding to exceed twenty-five percent (25%) of Total Asset Value.

     7.3 Fundamental Changes. Borrower shall not, and shall not permit any other Company to, merge,
dissolve, liquidate, consolidate with or into another Person, except that, so long as no Default
exists or would result therefrom:

     (a) any Consolidated Subsidiary may merge with Borrower, provided that
Borrower shall be the continuing or surviving Person;

     (b) any Consolidated Subsidiary may merge with any one or more other
Consolidated Subsidiaries; and

     (c) any Company (other than Borrower) may be voluntarily dissolved or
liquidated under the laws of its jurisdiction of organization (excluding any Debtor
Relief Law).

     7.4 Dispositions. Borrower shall not, and shall not permit any other Company to, make any
Disposition, except:

     (a) Dispositions of obsolete or worn out property, whether now owned or
hereafter acquired, in the ordinary course of business;

     (b) Dispositions of property to the extent that (i) such property is exchanged
for credit against the purchase price of similar replacement property or

 

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(ii) the
proceeds of such Disposition are reasonably promptly applied to the purchase price
of similar replacement property;

     (c) Dispositions of property by any Consolidated Subsidiary to Borrower or
another Consolidated Subsidiary;

     (d) Dispositions permitted by Section 7.3;

     (e) leases of Properties in the ordinary course of business;

     (f) Dispositions of Refrigerated Warehouse Properties (and of Consolidated
Subsidiaries that own primarily Refrigerated Warehouse Properties);

     (g) sales or other transfers of assets to Property Funds; and

     (h) other sales or other transfers of assets during any period of four (4)
consecutive fiscal quarters having a fair market value of not more than twenty
percent (20%) of the fair market value of all assets of the Companies as of the
first (1st) day of such period or, if greater, immediately prior to such
sale or transfer;

provided that any Disposition pursuant to clauses (a), (b), (f),
(g) and (h) shall be for fair market value.

     7.5 Restricted Payments. Borrower shall not, and shall not permit any other Company to, declare or make, directly or
indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
except that:

     (a) any Consolidated Subsidiary may make Restricted Payments to Borrower or
another Consolidated Subsidiary;

     (b) so long as no Default exists of would result therefrom, any Consolidated
Subsidiary may make Restricted Payments to any other Person that owns an Equity
Interest in such Consolidated Subsidiary, so long as payments are concurrently made
ratably to all holders of the type of Equity Interest in respect of which such
Restricted Payment is being made;

     (c) any Company may declare and make dividend payments or other distributions
payable solely in the common stock or other common Equity Interests of such Person;

     (d) any Company may purchase, redeem or otherwise acquire Equity Interests
issued by it with the proceeds received from the substantially concurrent issue of
new shares of its common stock or other common Equity Interests;

 

54

 

     (e) Borrower may purchase, redeem or otherwise acquire any of its Equity
Interests; provided that (i) no Default exists before or after giving effect
to such purchase, redemption or other acquisition, and (ii) the aggregate purchase
price, redemption price or other acquisition price of all such purchases,
redemptions or other acquisitions shall not exceed $400,000,000 in the aggregate
during the term of this Agreement; and

     (f) Borrower may make Permitted Distributions.

     7.6 Change in Nature of Business. Borrower shall not, and Borrower shall not permit any other
Company to, engage in any material line of business substantially different from those lines of
business conducted by the Companies or Catellus and its subsidiaries on the date hereof or any
business substantially related or incidental thereto.

     7.7 Transactions with Affiliates. Borrower shall not, and shall not permit any other Company to,
enter into any transaction of any kind with any Affiliate of Borrower, whether or not in the
ordinary course of business; provided that the foregoing restriction shall not apply to (a)
transactions with existing shareholders of Consolidated Subsidiaries and Unconsolidated Affiliates,
(b) transactions in the ordinary course of business (i) on fair and reasonable terms substantially
as favorable to Borrower or such Company as would be obtainable by Borrower or such Company at the
time in a comparable arm’s length transaction with a Person other than an Affiliate or (ii) that
comply with the requirements of the North America Security Administrators Association’s Statement
of Policy of Real Estate Investment Trusts, (c) payments to or from such Affiliates under leases of
commercial space on market terms, (d) payment of fees under asset or property management agreements
under terms and conditions available from qualified management companies, (e) intercompany
Liabilities and other Investments between any Company and its Consolidated Subsidiaries and
Unconsolidated Affiliates otherwise permitted pursuant to this Agreement, (f) transactions between
Companies, and (g) transactions otherwise permitted hereunder.

     7.8 Negative Pledge Agreements; Burdensome Agreements.

     (a) Borrower shall not, and shall not permit any other Company to, enter into
any negative pledge or other agreement with any other Person such that Borrower
shall be prohibited from granting to Administrative Agent, for the benefit of
Administrative Agent and Lender, a first-priority Lien in any Unencumbered Property
with Adjusted EBITDA that is used in the calculation of Unencumbered Debt Service
Coverage Ratio; provided that the foregoing shall not apply to restrictions
permitted under the Multi-Year Credit Agreement. Nothing herein should be construed
as creating a Lien.

     (b) Borrower shall not permit any Consolidated Subsidiary to enter into any
Contractual Obligation (other than this Agreement, any other Loan Document or any
other agreement or document evidencing or governing Indebtedness of such
Consolidated Subsidiary) that limits the ability of such Consolidated Subsidiary to
make Restricted Payments to any Company.

 

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     7.9 Use of Proceeds. Borrower shall not use the proceeds of the Term Loans, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of
purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

     7.10 Financial Covenants.

     7.10.1 Consolidated Net Worth. Borrower shall not permit Consolidated Net
Worth at any time to be less than the sum of (a) $2,500,000,000, and (b) an amount equal to
seventy percent (70%) of the aggregate increases in Shareholders’ Equity after the date
hereof by reason of the issuance and sale of Equity Interests of any Company (other than (x)
the issuance and sale of preferred Equity Interests in substitution and replacement of other
preferred Equity Interests that Borrower redeemed or otherwise acquired pursuant to a
Permitted Redemption to the extent that the net proceeds from such issuance and sale do not
exceed the amount of such Permitted Redemption and (y) issuances to a Company), including
upon any conversion of debt securities of any Company into such Equity Interests.

     7.10.2 Consolidated Leverage Ratio. Borrower shall not permit the Consolidated
Leverage Ratio at any time to be greater than the Maximum Leverage Ratio.

     7.10.3 Fixed Charge Coverage Ratio. Borrower shall not permit the Fixed Charge
Coverage Ratio, as of the last day of any fiscal quarter, to be less than 1.75 to 1.0.

     7.10.4 Unencumbered Debt Service Coverage Ratio. Borrower shall not permit the
Unencumbered Debt Service Coverage Ratio, as of the last day of any fiscal quarter, to be
less than 1.75 to 1.0.

For purposes of calculating the covenants set forth in this Section 7.10, the amount
included in such calculations with respect to any Qualified Bridge Loan as a result of Borrower’s
or any other Company’s guaranty of such Qualified Bridge Loan shall be limited to the Companies’
Share of such Qualified Bridge Loan from the date of incurrence of such Qualified Bridge Loan until
the date that is one hundred and twenty (120) days after the incurrence thereof so long as
no default or event of default has occurred and is continuing under such Qualified Bridge Loan.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

     8.1 Events of Default. Any of the following shall constitute an Event of Default:

     8.1.1 Non-Payment. Borrower fails to pay (a) when and as required to be paid
herein, any amount of principal of any Term Loan, or (b) within three (3) Business Days
after the same becomes due, any interest on any Term Loan, or any fee due hereunder, or

 

56

 

(c) within five (5) days after the same becomes due, any other amount payable hereunder or under
any other Loan Document.

     8.1.2 Specific Covenants. Borrower fails to perform or observe any term,
covenant or agreement contained in any of Section 6.10, 7.2, 7.5, or
7.10.

     8.1.3 Other Defaults. Borrower fails to perform or observe any other covenant
or agreement (not specified in Section 8.1.1 or 8.1.2 above) contained in
any Loan Document on its part to be performed or observed and such failure continues for
thirty (30) days (less, in the case of Section 6.3, the number of days between the
date a Responsible Officer obtained knowledge of such failure and the date that notice
thereof is given pursuant to Section 6.3) after the first to occur of (a) a
Responsible Officer obtaining knowledge of such failure or (b) Borrower’s receipt of notice
from Administrative Agent of such failure; provided that if such failure is of such a nature
that can be cured but cannot with reasonable effort be completely cured within thirty (30)
days, then such thirty (30) day period shall be extended for such additional period of time
(not exceeding thirty (30) additional days) as may be reasonably necessary to cure such
failure so long as Borrower commences such cure within such thirty (30) day period and
diligently prosecutes same until completion.

     8.1.4 Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of Borrower herein,
in any other Loan Document, or in any document delivered in connection
herewith or therewith shall be incorrect or misleading in any material respect when
made or deemed made.

     8.1.5 Cross-Default.

     (a) Any Company fails to make any payment when due (whether by scheduled
maturity, required prepayment, acceleration, demand, or otherwise) in respect of any
Indebtedness or Guarantee (other than Indebtedness hereunder or under any other Loan
Document and Indebtedness under Swap Contracts) having an aggregate principal amount
(including amounts owing to all creditors under any combined or syndicated credit
arrangement) of more than $50,000,000; or

     (b) Any Company fails to observe or perform any other agreement or condition
relating to in respect of any Indebtedness or Guarantee or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other event
occurs, the effect of which default or other event is to cause Indebtedness having
an aggregate principal amount (including amounts owing to all creditors under any
combined or syndicated credit arrangement) of more than $50,000,000, to be demanded
or to become due or to be repurchased, prepaid, defeased or redeemed (automatically
or otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Guarantee to become
payable or cash collateral in respect thereof to be demanded; or

 

57

 

     (c) There occurs under any Swap Contract an Early Termination Date (as defined
in such Swap Contract) resulting from (A) any event of default under such Swap
Contract as to which Borrower or any Consolidated Subsidiary is the Defaulting Party
(as defined in such Swap Contract) or (B) any Termination Event (as so defined)
under such Swap Contract as to which Borrower or any Consolidated Subsidiary is an
Affected Party (as so defined) and, in either event, the Swap Termination Value owed
by Borrower or such Consolidated Subsidiary as a result thereof is greater than
$50,000,000.

     8.1.6 Insolvency Proceedings, Etc. Any Company institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an assignment for the
benefit of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for
all or any material part of its property; or any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the application or consent
of such Person and the appointment continues undischarged or unstayed for sixty (60)
calendar days; or any proceeding under any Debtor Relief Law relating to any Company or to
all or any material part of its property is instituted without the consent of such Company
and continues undismissed or unstayed for sixty (60) calendar days, or an order for relief
is entered in any such proceeding.

     8.1.7 Inability to Pay Debts; Attachment. (a) Any Company becomes unable or
admits in writing its inability or fails generally to pay its debts as they become due, or
(b) any writ or warrant of attachment or execution or similar process is issued or levied
against all or any material part of the property of any Company and is not released, vacated
or fully bonded within thirty (30) days after its issue or levy.

     8.1.8 Judgments. There is entered against any Company (a) a final judgment or
order for the payment of money in an aggregate amount exceeding $50,000,000 (to the extent
not covered by insurance as to which the insurer does not dispute coverage), or (b) any one
or more non-monetary final judgments that have, or could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect and, in either case, (i)
enforcement proceedings are commenced by any creditor upon such judgment or order, or (ii)
there is a period of ten (10) consecutive days during which a stay of enforcement of such
judgment, by reason of a pending appeal or otherwise, is not in effect.

     8.1.9 ERISA. (a) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result in Liability
of any Company under Title IV of ERISA to such Pension Plan, such Multiemployer Plan or the
PBGC in an aggregate amount in excess of $5,000,000, or (b) Borrower or any ERISA Affiliate
fails to pay when due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal Liability under Section 4201 of ERISA under a
Multiemployer Plan in an aggregate amount in excess of $5,000,000.

 

58

 

     8.1.10 Invalidity of Loan Documents. Any provision of any Loan Document, at
any time after its execution and delivery and for any reason other than as expressly
permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to
be in full force and effect; or Borrower contests in any manner the validity or
enforceability of any provision of any Loan Document; or Borrower denies that it has any or
further Liability or obligation under any Loan Document, or purports to revoke, terminate or
rescind any provision of any Loan Document.

     8.1.11 Change of Control. A Change of Control occurs.

     8.1.12 Plan Assets. The assets of Borrower at any time constitute “plan
assets” as defined in 29 C.F.R. § 2510.3-101(a)(1) (or any successor regulation).

     8.2 Remedies Upon Event of Default. If any Event of Default occurs and is continuing,
Administrative Agent shall, at the request of, or may, with the consent of, Required Lenders, take
any or all of the following actions:

     (a) declare the Term Loan Commitments to be terminated, whereupon such
commitments shall be terminated;

     (b) declare the unpaid principal amount of all outstanding Term Loans, all
interest accrued and unpaid thereon, and all other amounts owing or payable
hereunder or under any other Loan Document to be immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by Borrower;

     (c) exercise on behalf of itself and each Lender all rights and remedies
available to it and Lenders under the Loan Documents;

provided that upon the occurrence of an actual or deemed entry of an order for relief with
respect to Borrower under the Bankruptcy Code of the United States, the unpaid principal amount of
all outstanding Term Loans and all interest and other amounts as aforesaid shall automatically
become due and payable without further act of Administrative Agent or any Lender.

     8.3 Application of Funds. After the exercise of remedies provided for in Section 8.2 (or
after the Term Loans have automatically become immediately due and payable), any amounts received
on account of the Obligations shall be applied by Administrative Agent in the following order:

     First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of counsel to Administrative
Agent and amounts payable under Article III) payable to Administrative Agent in its
capacity as such;

 

59

 

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal and interest) payable to Lenders (including fees, charges
and disbursements of counsel to the respective Lenders and amounts payable under Article
III), ratably among them in proportion to the respective amounts described in this clause
Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Term Loans and other Obligations, ratably among Lenders in proportion to the
respective amounts described in this clause Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Term Loans, ratably among Lenders in proportion to the respective amounts described in this
clause Fourth held by them; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full, to Borrower or as otherwise required by Law.

ARTICLE IX

ADMINISTRATIVE AGENT

     9.1 Appointment and Authority. Each Lender hereby irrevocably appoints Bank of America to act on its behalf as Administrative
Agent hereunder and under the other Loan Documents and authorizes Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to Administrative Agent, as
applicable, 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 Administrative
Agent and Lenders, and Borrower shall have no rights as a third party beneficiary of any of such
provisions.

     9.2 Rights as a Lender. The Person serving as 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 Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person serving as
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 Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not Administrative Agent hereunder and without any duty to account
therefor to Lenders.

     9.3 Exculpatory Provisions. 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, Administrative Agent:

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

 

60

 

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

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

Administrative Agent shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of Required Lenders (or such other number, percentage, or group of
Lenders as shall be necessary, or as Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.1 and 8.2) or (ii) in
the absence of
its own gross negligence or willful misconduct. Administrative Agent shall be deemed not to have
knowledge of any Default unless and until notice describing such Default is given to Administrative
Agent by Borrower or a Lender.

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 (other than its own statements, warranties, and representations), (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 IV or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to Administrative Agent.

     9.4 Reliance by Administrative Agent. Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying 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. 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 Term Loan that by its terms must be fulfilled to
the satisfaction of a Lender, Administrative Agent may presume that such condition is satisfactory
to such Lender unless Administrative Agent shall have received notice to the contrary from such
Lender prior to the making of such Term Loan. Administrative Agent may consult with legal counsel
(who may be counsel for Borrower), independent accountants and

 

61

 

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.

     9.5 Delegation of Duties. 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 any one or more
sub-agents appointed by Administrative Agent. Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or through their respective
Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and
to the Related Parties of Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Administrative Agent.

     9.6 Resignation of Administrative Agent. Administrative Agent may at any time give notice of its
resignation to Lenders and Borrower. Upon receipt of any such notice of resignation, Required
Lenders shall have the right, in consultation with Borrower, to appoint a successor, which shall be
a bank with an office in the United States, or an Affiliate of a bank with an office in the United
States. If no such successor
shall have been so appointed by Required Lenders and shall have accepted such appointment within
thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of Lenders, appoint a successor Administrative Agent
meeting the qualifications set forth above; provided that if Administrative Agent shall
notify Borrower and Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (a) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents, and (b) all payments, communications and determinations provided to be made
by, to or through Administrative Agent shall instead be made by or to each Lender directly, until
such time as Required Lenders appoint a successor Administrative Agent as provided for above in
this Section. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder,
such successor shall succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent
shall be discharged from all of its duties and obligations hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this Section). The fees
payable by Borrower to a successor Administrative Agent shall be the same as (but without
duplication with) those payable to its predecessor unless otherwise agreed between Borrower and
such successor. After the retiring Administrative Agent’s resignation hereunder and under the
other Loan Documents, the provisions of this Article and Section 10.4 shall continue in
effect for the benefit of such retiring 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 Administrative Agent was acting as Administrative Agent.

     9.7 Non-Reliance on Administrative Agent and Other Lenders. Each Lender acknowledges that it has,
independently and without reliance upon Administrative Agent or any other Lender or any of their
respective Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon Administrative Agent or any
other Lender or any of their respective Related Parties and

 

62

 

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.

     9.8 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 Borrower, Administrative Agent (irrespective of whether the
principal of any Term Loan shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Administrative Agent shall have made any demand on 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 Term Loans and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have the claims of
Lenders and Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of Lenders and Administrative
Agent and their respective agents and counsel and all other amounts due Lenders and
Administrative Agent under Sections 2.6 and 10.4) allowed in such judicial
proceeding; and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to
Administrative Agent and, in the event that Administrative Agent shall consent to the making of
such payments directly to Lenders, to pay to Administrative Agent any amount due Administrative
Agent under Sections 2.6 and 10.4.

Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or consent
to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment
or composition affecting the Obligations or the rights of any Lender or to authorize Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

ARTICLE X

MISCELLANEOUS

     10.1 Amendments, Etc. Except as otherwise expressly provided herein, no amendment or waiver of any
provision of this Agreement or any other Loan Document, and no consent to any departure by Borrower
therefrom, shall be effective unless in writing signed by Required Lenders and Borrower and
acknowledged by Administrative Agent, and each such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided no amendment,
waiver or consent shall:

 

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     (a) postpone any date fixed by this Agreement or any other Loan Document for
any scheduled or mandatory payment of principal, interest, fees or other amounts due
to any Lender hereunder or under any other Loan Document without the written consent
of each Lender directly affected thereby;

     (b) extend or increase the Term Loan Commitment of any Lender (or reinstate any
Term Loan Commitment terminated pursuant to Section 8.2) without the written
consent of such Lender;

     (c) reduce the principal of, or the rate of interest specified herein on, any
Term Loan, or any fees or other amounts payable hereunder or under any other Loan
Document, without the written consent of each Lender and/or Administrative Agent
directly affected thereby; provided that only the consent of Required
Lenders shall be necessary to amend the definition of “Default Rate” or to waive any
obligation of Borrower to pay interest at the Default Rate;

     (d) change Section 2.10 or Section 8.3 in a manner that would
alter the pro rata sharing of payments required thereby without the written consent
of each affected Lender; and

     (e) change any provision of this Section 10.1, the definition of
“Required Lenders” or any other provision hereof specifying the number or
percentage of the aggregate Lenders required to amend, waive or otherwise modify any
rights hereunder or make any determination or grant any consent hereunder without
the written consent of each Lender;

and provided, further, that no amendment, waiver or consent shall, unless in
writing and signed by Administrative Agent in addition to Lenders required above, affect the rights
or duties of Administrative Agent under this Agreement or any other Loan Document. Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove
any amendment, waiver or consent hereunder, except that the Term Loan Commitment of such Lender may
not be increased or extended without the consent of such Lender.

     10.2 Notices; Effectiveness; Electronic Communication.

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

 

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     (a) if to Borrower or Administrative Agent, to the address, telecopier number,
electronic mail address or telephone number specified for such Person on
Schedule 10.2; and

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

Notices sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of business on the next
business day for the recipient). Notices delivered through electronic communications to the
extent provided in Section 10.2.2, shall be effective as provided in such
Section 10.2.2.

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

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

     10.2.3 The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE
AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR
OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD

 

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PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS
MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no
event shall Administrative Agent or any of its Related Parties (collectively, the “Agent
Parties”) have any liability to Borrower, any Lender or any other Person for losses, claims,
damages, liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of Borrower’s or Administrative Agent’s transmission of Borrower Materials
through the Internet, except to the extent that such losses, claims, damages, liabilities or
expenses are determined by a court of competent jurisdiction by a final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Agent
Party; provided that in no event shall any Agent Party have any liability to Borrower, any
Lender or any other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).

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

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

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

 

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     10.4 Expenses; Indemnity; Damage Waiver.

     10.4.1 Costs and Expenses. Borrower shall pay (a) all reasonable out-of-pocket
expenses incurred by Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for Administrative Agent), in connection with (x) the
syndication of the credit facilities provided for herein and the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan Documents and
(y) any amendments, modifications or waivers of the provisions hereof or thereof (whether or
not the transactions contemplated hereby or thereby shall be consummated); provided that
Borrower shall have no liability under clause (x) for any fees, charges, or disbursements of
any counsel other than Haynes and Boone, LLP, and any other counsel selected by
Administrative Agent and approved by Borrower (such approval not to be unreasonably withheld
or delayed) and (b) all reasonable out-of-pocket expenses incurred by Administrative Agent,
any Lender (including the reasonable fees, charges and disbursements of any counsel for
Administrative Agent or any Lender), and shall pay all fees and time charges for attorneys
who may be employees of Administrative Agent or any Lender, in connection with the
enforcement or protection of its rights (i) in connection with this Agreement and the other
Loan Documents, including its rights under this Section, or (ii) in connection with the Term
Loans, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations
arising hereunder.

     10.4.2 Indemnification by Borrower. Borrower shall indemnify Administrative
Agent (and any sub-agents thereof), each Lender and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related
expenses (including the reasonable fees, charges and disbursements of any counsel for any
Indemnitee), and shall indemnify and hold harmless each Indemnitee from all reasonable fees
and time charges and disbursements for attorneys who may be employees of any Indemnitee,
incurred by any Indemnitee or asserted against any Indemnitee by any third party or by
Borrower arising out of, in connection with, or as a result of (a) the execution or delivery
of this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder, the consummation of the transactions contemplated hereby or
thereby, or, in the case of Administrative Agent (and any sub-agent thereof) and its Related
Parties only, the administration of this Agreement and the other Loan Documents, (b) any
Term Loan or the use or proposed use of the proceeds therefrom, (c) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or operated by
Borrower or any Affiliate, or any Environmental Liability related in any way to Borrower or
any Affiliate, or (d) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other
theory, whether brought by a third party or by Borrower, and regardless of whether any
Indemnitee is a party thereto, in all cases whether or not caused by or arising, in whole or
in part, out of the comparative, contributory or sole negligence of the Indemnitee; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages,

 

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liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee or any of its Related Parties or (y)
result from a claim brought by Borrower against an Indemnitee for breach in bad faith of
such Indemnitee’s obligations hereunder or under any other Loan Document, if Borrower has
obtained a final and nonappealable judgment in its favor on such claim as determined by a
court of competent jurisdiction.

     10.4.3 Reimbursement by Lenders. To the extent that Borrower for any reason
fails to indefeasibly pay any amount required under Section 10.4.1 or 10.4.2
to be paid by it to Administrative Agent (or any sub-agent thereof) or any Related Party of
any of the foregoing, each Lender severally agrees to pay to Administrative Agent (or any
such sub-agent), such Lender’s Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount,
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against Administrative
Agent (or any such sub-agent) in its capacity as such, or against any Related Party of any
of the foregoing acting for Administrative Agent (or any such sub-
agent) in connection with such capacity. The obligations of Lenders under this
Section 10.4.3 are subject to the provisions of Section 2.9.3.

     10.4.4 Waiver of Consequential Damages, Etc. To the fullest extent permitted
by applicable law, Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a
result of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Term Loan or the
use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with
this Agreement or the other Loan Documents or the transactions contemplated hereby or
thereby except to the extent that such damages are determined by a court of competent
jurisdiction by final and non-appealable judgment to have resulted from the gross negligence
or willful misconduct of such Indemnitee.

     10.4.5 Payments. All amounts due under this Section shall be payable not later
than ten (10) Business Days after demand therefor.

     10.4.6 Survival. The agreements in this Section shall survive the resignation
of Administrative Agent, the replacement of any Lender, the termination of the Term Loan
Commitments, and the repayment, satisfaction or discharge of all other Obligations.

     10.5 Payments Set Aside. To the extent that any payment by or on behalf of Borrower is made to
Administrative Agent or any Lender, or Administrative Agent or any Lender exercises its right of
setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required

 

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(including pursuant
to any settlement entered into by Administrative Agent or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any proceeding under any
Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such setoff had not occurred, and (b) each applicable
Lender severally agrees to pay to Administrative Agent upon demand its applicable share (without
duplication) of any amount so recovered from or repaid by Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made at a rate per annum
equal to the applicable Overnight Rate from time to time in effect, in the applicable currency of
such recovery or payment. The obligations of Lenders under clause (b) of the preceding
sentence shall survive the payment in full of the Obligations and the termination of this
Agreement.

     10.6 Successors and Assigns.

     10.6.1 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 permitted assigns, except that Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent
of Administrative Agent and each Lender and no Lender may assign or otherwise transfer any
of its rights or obligations hereunder except (a) to an Eligible Assignee in accordance with
the provisions of Section 10.6.2, (b) by way of participation in accordance with the
provisions of Section 10.6.4 of this Section, or (c) by way of pledge or assignment
of a security interest subject to the restrictions of Section 10.6.6 (and any other
attempted assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any Person (other
than the parties hereto, their respective successors and permitted assigns, Participants to
the extent provided in Section 10.6.4 and, to the extent expressly contemplated
hereby, the Related Parties of Administrative Agent and Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

     10.6.2 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 Term Loan Commitment and its Term Loan); provided that:

     (a) except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Term Loan Commitment and Term Loan 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 Term Loan Commitment (which for this
purpose includes the Term Loan outstanding thereunder) or, if the Term Loan
Commitments are not then in effect, the principal outstanding balance of the Term
Loan 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
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than

 

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$5,000,000 unless each of
Administrative Agent and, so long as no Event of Default has occurred and is
continuing, Borrower otherwise consents (each such consent not to be unreasonably
withheld or delayed); provided that concurrent assignments to members of an
Assignee Group and concurrent assignments from members of an Assignee Group to a
single Eligible Assignee (or to an Eligible Assignee and members of its Assignee
Group) will be treated as a single assignment for purposes of determining whether
such minimum amount has been met;

     (b) 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 Term Loan or the Term Loan Commitment assigned;

     (c) any assignment of a Term Loan Commitment must be approved by Administrative
Agent, 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); and

     (d) the parties to each assignment shall execute and deliver to Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee
in the amount (which fee is not an obligation of Borrower), if any, required as set
forth in Schedule 10.6, and the Eligible Assignee, if it is not a Lender,
shall deliver to Administrative Agent an Administrative Questionnaire.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to
Section 10.6.3, 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 3.1, 3.4, 3.5, and 10.4 with respect to facts and
circumstances occurring prior to the effective date of such assignment. Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not comply with
this Section 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 Section 10.6.4.

     10.6.3 Register. Administrative Agent, acting solely for this purpose as an
agent of Borrower, shall maintain at 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 Lenders, and the Term Loan Commitment of, and principal amount of the Term Loan owing to,
each Lender pursuant to the terms hereof from time to time (each, a “Register”).
The entries in each Register shall be conclusive, and Borrower,

 

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Administrative Agent, and
Lenders may treat each Person whose name is recorded in a Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. Each Register shall be available for inspection by any party to this
Agreement at any reasonable time and from time to time upon reasonable prior notice.

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

Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other modification
described in the first proviso to Section 10.1 that affects such Participant.
Subject to Section 10.6.5, Borrower agrees that each Participant shall be entitled
to the benefits of Sections 3.1, 3.4 and 3.5 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to Section
10.6.2. To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.8 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.9 as though it were a Lender.

     10.6.5 Limitation upon Participant Rights. A Participant shall not be entitled
to receive any greater payment under Section 3.1 or 3.4 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
Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 3.1 unless Borrower is
notified of the participation sold to such Participant and such Participant agrees, for the
benefit of Borrower, to comply with Section 3.1.6 as though it were a Lender.

     10.6.6 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 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.

 

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     10.6.7 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.

     10.7 Treatment of Certain Information; Confidentiality. Each of Administrative Agent and each
Lender agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective
partners, directors, officers, employees, agents, advisors and representatives (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable Laws or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any
remedies hereunder or under any other Loan Document or any action or proceeding relating to this
Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f)
subject to an agreement containing provisions substantially the same as those of this Section, to
(i) any actual or prospective assignee of or Participant in any of its rights or obligations under
this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to Borrower and its obligations, (g) with the consent of Borrower,
or (h) to the extent such Information becomes publicly available other than as a result of a breach
of this Section.

For purposes of this Section, “Information” means all information received from Borrower,
or any Consolidated Subsidiary relating to Borrower, or any Consolidated Subsidiary or any of their
respective businesses, other than any such information that is available to Administrative Agent or
any Lender on a nonconfidential basis from a source other than Borrower or any Consolidated
Subsidiary.

Each of Administrative Agent and each Lender acknowledges that (1) the Information may include
material non-public information concerning Borrower, or any Consolidated Subsidiary, as the case
may be, (2) it has developed compliance procedures regarding the use of material non-public
information and (3) it will handle such material non-public information in accordance with
applicable Law, including Federal and state securities Laws.

     10.8 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender
and each of its Affiliates is hereby authorized at any time and from time to time, after obtaining
the prior written consent of Administrative Agent, to the fullest extent permitted by applicable
law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final, in whatever currency) at any time held and other obligations (in whatever

 

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currency) at any
time owing by such Lender or such Affiliate to or for the credit or the account of Borrower against
any and all of the obligations of Borrower now or hereafter existing under this Agreement or any
other Loan Document to such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement or any other Loan Document and although such obligations of Borrower
may be contingent or unmatured or are owed to a branch or office of such Lender different from the
branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender
and their respective Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender or their respective Affiliates may have. Each
Lender agrees to notify Borrower and Administrative Agent promptly after any such setoff and
application, provided that the failure to give such notice shall not affect the validity of
such setoff and application.

     10.9 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
Administrative Agent or any
Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall
be applied to the principal of the Term Loans or, if it exceeds such unpaid principal, refunded to
Borrower. In determining whether the interest contracted for, charged, or received by
Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted
by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or
premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c)
amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations hereunder.

     10.10 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 Section 4.1, this
Agreement shall become effective when Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each party 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.

     10.11 Severability. If any provision of this Agreement or any other Loan Document 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 provision with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provision. The invalidity of a provision
in a particular jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

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     10.12 Replacement of Lenders. If any Lender requests compensation under Section 3.4, or if
Borrower is required to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 3.1, or if any Lender is a Defaulting Lender
or a Non-Consenting Lender, then Borrower may, at its sole expense and effort, upon notice to such
Lender and Administrative Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in, and consents required by, Section
10.6), 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 another Lender,
if a Lender accepts such assignment), provided that:

     (a) Borrower shall have paid to Administrative Agent the assignment fee
specified in Section 10.6.2;

     (b) such Lender shall have received payment of an amount equal to the
outstanding principal of its Term Loan, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder and under the other Loan Documents
(including any amounts under Section 3.5) from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or Borrower (in
the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation
under Section 3.4 or payments required to be made pursuant to Section
3.1, such assignment will result in a reduction in such compensation or payments
thereafter; and

     (d) such assignment does not conflict with applicable Laws.

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 Borrower to require
such assignment and delegation cease to apply.

     10.13 GOVERNING LAW; JURISDICTION; ETC.

     10.13.1 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     10.13.2 SUBMISSION TO JURISDICTION. EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF
THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK, NEW YORK AND OF THE UNITED STATES
DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH PARTY
HERETO IRREVOCABLY AND

 

74

 

UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR IN SUCH FEDERAL
COURT. EACH PARTY HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING
SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN
ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT
SHALL AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT OR LENDERS MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     10.13.3 WAIVER OF VENUE. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN SECTION
10.13.2. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

     10.13.4 SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE
OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.2. NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.

     10.14 Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     10.15 USA PATRIOT ACT NOTICE. Each Lender that is subject to the Act (as defined below) and
Administrative Agent (for itself and not on behalf of any Lender) hereby

 

75

 

notify 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 Borrower, which information includes the name and address of Borrower and other
information that will allow such Lender or Administrative Agent, as applicable, to identify
Borrower in accordance with the Act.

     10.16 Time of the Essence. Time is of the essence of the Loan Documents.

     10.17 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Signature
pages follow.]

 

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Executed as of the date first written above.

	 	 	 	 	 	 	 
	 	 	PROLOGIS, a Maryland real estate investment trust	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ M. Gordon Keiser Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	M. Gordon Keiser Jr., Senior Vice President / Treasurer	 	 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Will T. Bowers, Jr. 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Will T. Bowers, Jr., Senior Vice President	 	 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kent A. Kaiser	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Kent A. Kaiser, Senior Vice President	 	 

	 	 	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeanne M. Craig	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jeanne M. Craig, Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]