Document:

EXHIBIT 10

EXHIBIT 10.35

THIRD AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

DATED AS OF FEBRUARY 28, 2001

AMONG

DUKE-WEEKS REALTY LIMITED PARTNERSHIP,

AS BORROWER,

DUKE-WEEKS REALTY CORPORATION,

AS GENERAL PARTNER AND GUARANTOR,

BANK ONE, NA AS

ADMINISTRATIVE AGENT AND LENDER,

BANC ONE CAPITAL MARKETS, INC.,

AS LEAD ARRANGER AND SOLE BOOK RUNNER

WELLS FARGO BANK, NATIONAL ASSOCIATION,

AS SYNDICATION AGENT

AND LENDER,

PNC BANK, NATIONAL

ASSOCIATION,

AS DOCUMENTATION AGENT AND LENDER

WACHOVIA BANK, N.A., AS MANAGING AGENT AND

LENDER,

BANK OF AMERICA N.A., AS MANAGING AGENT AND

LENDER,

COMMERZBANK AG, NEW YORK AND GRAND CAYMAN

BRANCHES,

AS MANAGING AGENT AND LENDER,

AMSOUTH BANK, AS CO-AGENT AND LENDER,

FIRSTAR BANK, NATIONAL ASSOCIATION, AS

CO-AGENT AND LENDER,

THE SEVERAL OTHER LENDERS

FROM TIME TO TIME PARTIES HERETO

 

TABLE OF CONTENTS

 

Table of Contents

	

  RECITALS

  
	

  ARTICLE

  I DEFINITIONS

  
	

  ARTICLE

  II THE CREDIT

  
	

  2.1.Commitment

  
	

  2.2.Final

  principal payment

  
	

  2.3.loans

  
	

  2.4.Applicable

  Margins

  
	

  2.5.Facility Fee

  
	

  2.6.Other Fees

  
	

  2.7.Voluntary

  Reduction Of Aggregate Commitment Amount

  
	

  2.8.Minimum Amount Of

  Each Advance

  
	

  2.9.Optional Principal

  Payments

  
	

  2.10.Method

  Of Selecting Types And Interest Periods For New Advances

  
	

  2.11.Conversion

  And Continuation Of Outstanding Advances

  
	

  2.12.Changes In Interest

  Rate, Etc.

  
	

  2.13.Rates Applicable

  After Default

  
	

  2.14.Swing Line

  Loans

  
	

  2.15.Competitive

  Bid Loans

  
	

  2.16.Method

  Of Payment

  
	

  2.17.Notes;

  Telephonic Notices

  
	

  2.18.Interest

  Payment Dates; Interest And Fee Basis

  

 

 

	

  2.19.Notification

  Of Advances, Interest Rates And Prepayments

  
	

  2.20.Lending

  Installations

  
	

  2.21.Non-Receipt

  Of Funds By The Administrative Agent

  
	

  2.22.Usury

  
	

  2.23.Applications Of

  Moneys Received

  
	

  ARTICLE III THE LETTER

  OF CREDIT SUBFACILITY

  
	

  3.1.Obligations

  To Issue

  
	

  3.2.Types And

  Amounts

  
	

  3.3.Conditions

  
	

  3.4.

  Procedure For Issuance Of Facility Letters Of Credit

  
	

  3.5.

  Administration; Reimbursement By Lenders

  
	

  3.6. Reimbursement By

  Borrower

  
	

  3.7.

  Obligations Absolute

  
	

  3.8.

  Actions By Issuing Bank

  
	

  3.9.

  Indemnification

  
	

  3.10.Lenders’

  Indemnificaiton

  
	

  3.11.Participation

  
	

  3.12.Compensation

  For Facility Letters Of Credit

  
	

  3.13.Letter Of Credit

  Collateral Account

  
	

  ARTICLE IV CHANGE IN

  CIRCUMSTANCES

  
	

  4.1.Yield Protection

  
	

  4.2.Changes In

  Capital Adequacy Regulations

  
	

  4.3.Availability Of

  Types Of Advances

  
	

  4.4.Funding

  Indemnification

  
	

  4.5.Taxes

  
	

  4.6.Lender

  Statements; Survivial Of Indemnity

  
	

  4.7.Replacement

  Of Lenders Under Certain Circumstances

  
	

  ARTICLE V CONDITIONS

  PRECEDENT

  
	

  5.1. Effective

  Date

  
	

  5.2.Each Advance

  
	

  ARTICLE VI REPRESENTATIONS

  AND WARRANTIES

  
	

  6.1.Existence

  
	

  6.2.Authorization And

  Validity

  
	

  6.3.No Conflict;

  Government Consent

  
	

  6.4.Financial

  Statements; Material Adverse Change

  
	

  6.5.Taxes

  
	

  6.6.Litigation And

  Guarantee Obligations

  
	

  6.7.Subsidiaries

  
	

  6.8. Erisa

  
	

  6.9.Accuracy

  Of Information

  
	

  6.10.Margin Stock

  
	

  6.11.Material

  Agreements

  
	

  6.12.Compliance

  With Laws

  
	

  6.13.Ownership

  Of Properties

  
	

  6.14.Investment

  Company Act

  
	

  6.15.Public Utility

  Holding Company Act

  
	

  6.16.Solvency

  
	

  6.17.Insurance

  
	

  6.18.Reit Status

  
	

  6.19.Environmental

  Matters

  
	

  6.20.Unencumbered

  Assets

  

 

2

 

	

  ARTICLE

  VII COVENANTS

  
	

  7.1.Financial

  Reporting

  
	

  7.2.Use

  Of Proceeds

  
	

  7.3.Notice Of

  Default

  
	

  7.4.Conduct

  Of Business

  
	

  7.5.Taxes

  
	

  7.6.Insurance

  
	

  7.7.Compliance

  With Laws

  
	

  7.8.Maintenance Of Properties

  
	

  7.9.Inspection

  
	

  7.10.Maintenance

  Of Status

  
	

  7.11.Dividends

  
	

  7.12.Merger;

  Sale Of Assets

  
	

  7.13.General

  Partner’s Ownership And Control Of Borrower

  
	

  7.14.Sale

  And Leaseback

  
	

  7.15.Liens

  
	

  7.16.Affiliates

  
	

  7.17.Interest

  Rate Hedging

  
	

  7.18.Variable Interest

  Indebtedness

  
	

  7.19.Consolidated

  Net Worth

  
	

  7.20.Indebtedness

  And Cash Flow Covenants

  
	

  7.21.Environmental

  Matters

  
	

  7.22.Control Of The

  General Partner

  
	

  7.23.Borrower’s

  Partnership Agreement

  
	

  7.24.General

  Partner’s Assets

  
	

  7.25.Notice

  Of Rating Change

  
	

  ARTICLE

  VIII DEFAULTS

  
	

  ARTICLE

  IX ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

  
	

  9.1.Acceleration

  
	

  9.2.Amendments

  
	

  9.3.Preservation

  Of Rights

  
	

  ARTICLE X GENERAL

  PROVISIONS

  
	

  10.1.Survivial Of

  Representations

  
	

  10.2.Governmental

  Regulation

  
	

  10.3.Taxes

  
	

  10.4.Headings

  
	

  10.5.Entire Agreement

  
	

  10.6.Several

  Obligations; Benefits Of This Agreement

  
	

  10.7.Expenses;

  Indemnification

  
	

  10.8.Numbers

  Of Documents

  
	

  10.9.Accounting

  
	

  10.10.Severability Of

  Provisions

  
	

  10.11.Nonliability

  Of Lenders

  
	

  10.12.Publicity

  
	

  10.13.Choice Of Law

  
	

  10.14.Consent

  To Jurisdiction

  
	

  10.15.Waiver

  Of Jury Trial

  
	

  10.16.Agent

  Responsibilities

  
	

  ARTICLE

  XI THE ADMINISTRATIVE AGENT AND AGREEMENTS AMONG LENDERS

  
	

  11.1.Appointment;

  Nature Of Relationship

  
	

  11.2.Powers

  

 

3

 

	

  11.3.General

  Immunity

  
	

  11.4.No

  Responsibility For Loans, Recitals, Etc.

  
	

  11.5.Action On Instructions

  Of Lenders

  
	

  11.6.Employment Of

  Agents And Counsel

  
	

  11.7.Reliance On

  Documents; Counsel

  
	

  11.8.Administrative

  Agent’s Reimbursement And Indemnification

  
	

  11.9.Rights

  As A Lender

  
	

  11.10.Lender

  Credit Decision

  
	

  11.11.Successor

  Administrative Agent

  
	

  11.12.Notice

  Of Defaults

  
	

  11.13.Requests

  For Approval

  
	

  11.14.Copies

  Of Documents

  
	

  11.15.Defaulting

  Lenders

  
	

  ARTICLE XII SETOFF;

  RATABLE PAYMENTS

  
	

  12.1.Setoff

  
	

  12.2.Ratable

  Payments

  
	

  ARTICLE

  XIII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

  
	

  13.1.Successors

  And Assigns

  
	

  13.2.Participations

  
	

  13.3.Assignments

  
	

  13.4.Designation

  Of Lender To Make Competitive Bid Loans

  
	

  13.5.Dissemination Of

  Information

  
	

  13.6.Tax Treatment

  
	

  ARTICLE

  XIV NOTICES

  
	

  14.1.Giving Notice

  
	

  14.2.Change

  Of Address

  
	

  ARTICLE

  XV COUNTERPARTS

  

 

THIRD AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

 

This Agreement, dated as of

February 28, 2001, is among Duke-Weeks Realty Limited Partnership, an Indiana

limited partnership (the “Borrower”), Duke-Weeks Realty Corporation, an

Indiana corporation (the “General Partner” and the “Guarantor”), Banc One

Capital Markets, Inc. (“BOCM”) (the “Arranger”), Bank One, NA (“Bank

One”) as a Lender and not individually, but as “Administrative Agent”,

Wells Fargo Bank, National Association (“Wells Fargo”) as Syndication Agent,

PNC Bank, National Association (“PNC”), as Documentation Agent, Bank of

America, N.A. (“BOA”), Commerzbank AG, New York and Grand Cayman Branches

(“Commerz”), and Wachovia Bank, N.A. (“Wachovia”) as Managing Agents, AmSouth

Bank (“AmSouth”) and Firstar Bank, National Association (“Firstar”), as

Co-Agents, and the several banks, financial institutions and other entities

from time to time parties to this Agreement (collectively, with Bank One, Wells

Fargo, PNC, Bank of America, Commerz, Wachovia, AmSouth and Firstar, the

“Lenders”).

 

RECITALS

 

A.            The Borrower is primarily engaged in the business of

purchasing, developing, owning, operating, leasing and managing office,

industrial and retail properties.

 

B.            The General Partner, the Borrower’s sole general partner,

is listed on the New York Stock Exchange and is qualified as a real estate

investment trust. The General Partner owns approximately 87% of the total

partnership units in the Borrower and various limited partners in the Borrower

own approximately 13% of such partnership units.

 

4

 

C.            The Borrower, General Partner, the Administrative Agent,

and certain of the Lenders are parties to a Second Amended and Restated

Revolving Credit Agreement dated as of September 24, 1998, (as previously

amended, the “Existing Credit Agreement”) pursuant to which the Lenders that

are parties thereto agreed to make loans to the Borrower in the maximum

aggregate amount of $450,000,000.

 

D.            The Borrower and the General Partner have requested that

the Lenders modify and extend the Existing Credit Agreement as provided herein.

 

NOW, THEREFORE, in

consideration of the mutual covenants and agreements herein contained, the

parties hereto amend and restate in its entirety the Existing Credit Agreement

as follows:

 

ARTICLE

I

DEFINITIONS

As used in this Agreement:

 

“ABR Advance” means an Advance

which bears interest at the ABR Rate.

 

“ABR Applicable Margin” means,

as of any date, the Applicable Margin in effect on such date with respect to

ABR Advances and ABR Loans.

 

“ABR Loan” means a Loan which

bears interest at the ABR Rate.

 

“ABR Rate” means, for any day,

a rate per annum equal to (i) the Alternate Base Rate for such day plus (ii)

ABR Applicable Margin for such day, in each case changing when and as the Prime

Rate changes.

 

“Absolute Interest Period”

means, with respect to a Competitive Bid Loan made at an Absolute Rate, a period

of one, two, three or six months as requested by Borrower in a Competitive Bid

Quote Request and confirmed by a Lender in a Competitive Bid Quote but in no

event extending beyond the Facility Termination Date. If an Absolute Interest

Period would end on a day which is not a Business Day, such Absolute Interest

Period shall end on the next succeeding Business Day.

 

“Absolute Rate” means a fixed

rate of interest (rounded to the nearest 1/100 of 1%) for an Absolute Interest

Period with respect to a Competitive Bid Loan offered by a Lender and accepted

by the Borrower at such rate.

 

“Administrative Agent” means

Bank One, NA in its capacity as contractual representative for the Lenders

pursuant to Article XI, and not in its individual capacity as a Lender, and any

successor Administrative Agent appointed pursuant to Article XI.

 

“Advance” means a borrowing

hereunder consisting of the aggregate amount of the several Loans (including

Swing Line Loans and Competitive Bid Loans) made by some or all of the Lenders

to the Borrower of the same Type and, in the case of LIBOR Advances, for the

same Interest Period.

 

“Adjusted EBITDA” means EBITDA

less Capital Expenditure Reserve Amount.

 

“Affiliate” of any Person means

any other Person directly or indirectly controlling, controlled by or under

common control with such Person.  A

Person shall be deemed to control another Person if the controlling Person owns

10% or more of any class of voting securities (or other ownership interests) of

the controlled Person or possesses, directly or indirectly, the power to direct

or cause the direction of the management or policies of the controlled Person,

whether through ownership of stock, by contract or otherwise.

 

“Aggregate Commitment” means

the aggregate of the Commitments of all the Lenders, which initially shall be

$500,000,000, and which may be changed in accordance with Section 2.1.

 

5

 

“Agreement” means this Third

Amended and Restated Revolving Credit Agreement, as it may be amended or

modified and in effect from time to time.

 

“Allocated Facility Amount”

means, at any time, the sum of all then outstanding Advances and the then

outstanding Facility Letter of Credit Obligations.

 

“Alternate Base Rate” means,

for any day, a rate of interest per annum equal to the higher of (i) the Prime

Rate for such day and (ii) the sum of the Federal Funds Effective Rate for such

day plus 1/2% per annum.

 

“Applicable Margin” means the

applicable margin set forth in the table in Exhibit A used in calculating the

interest rate applicable to the various Types of Advances which shall vary from

time to time in accordance with Borrower’s and Guarantor’s long term unsecured

debt ratings.

 

“Arranger” means BOCM.

 

“Article” means an article of

this Agreement unless another document is specifically referenced.

 

“Assets Under Development”

means, as of any date of determination, any Project owned by the Borrower or

any of its Subsidiaries on which the construction of new income-producing

building or buildings has been commenced and is continuing, both such land and

improvements under construction to be valued for purposes of this Agreement at

then-current book value, as determined in accordance with GAAP.

 

“Authorized Officer” means any

of Darrell E. Zink, Dennis D. Oklak, Gary Burk, Matthew A. Cohoat, or

Michael D. Pitts or Thomas L. Hefner acting singly.

 

“Bank One” means Bank One, NA

in its individual capacity, and its successors.

 

“Borrower” means Duke-Weeks

Realty Limited Partnership, an Indiana limited partnership, and its successors

and permitted assigns.

 

“Borrowing Date” means a date

on which an Advance is made hereunder.

 

“Borrowing Notice” is defined

in Section 2.10.

 

“Business Day” means (i) with

respect to any borrowing, payment or rate selection of LIBOR Advances, a day

(other than a Saturday or Sunday) on which banks generally are open in Chicago,

Illinois, and San Francisco, California for the conduct of substantially all of

their commercial lending activities and on which dealings in United States

dollars are carried on in the London interbank market and (ii) for all other

purposes, a day (other than a Saturday or Sunday) on which banks generally are

open in Chicago, Illinois and San Francisco, California for the conduct of

substantially all of their commercial lending activities.

 

“Capital Expenditure Reserve

Amount” means, for any quarter, the greater of (i) 6% of EBITDA for such

quarter or (ii) the average quarterly capital expenditures, leasing commissions

and tenant improvement costs except for leasing commissions and tenant

improvement costs associated with the initial leasing of space not previously

occupied (i.e., first generation space) for the four most recently completed

quarters.

 

“Capital Stock” means any and

all shares, interests, participations or other equivalents (however designated)

of capital stock of a corporation, any and all equivalent ownership interests

in a Person which is not a corporation and any and all warrants or options to

purchase any of the foregoing.

 

“Capitalized Lease” of a Person

means any lease of Property imposing obligations on such Person, as lessee

thereunder, which are required in accordance with GAAP to be capitalized on a

balance sheet of such Person.

 

6

 

“Capitalized Lease Obligations”

of a Person means the amount of the obligations of such Person under

Capitalized Leases which would be shown as a liability on a balance sheet of

such Person prepared in accordance with GAAP.

 

“Cash Equivalents” means, as of

any date, (i) securities issued or directly and fully guaranteed or insured by

the United States Government or any agency or instrumentality thereof having

maturities of not more than one year from such date, (ii) time deposits and

certificates of deposit having maturities of not more than one year from such

date and issued by any domestic commercial bank having (A) senior long-term

unsecured debt rated at least A or the equivalent thereof by S&P, A or the

equivalent thereof by Duff & Phelps or A2 or the equivalent thereof by

Moody’s and (B) capital and surplus in excess of $500,000,000, and

(iii) commercial paper rated at least A-1 or the equivalent thereof by

S&P, A-1 or the equivalent thereof by Fitch or P-1 or the equivalent

thereof by Moody’s and in any such case maturing within 90 days from such date.

 

“Closing Date” means the date

of this Agreement.

 

“Co-Agents” means AmSouth and

Firstar.

 

“Code” means the Internal

Revenue Code of 1986, as amended, reformed or otherwise modified from time to

time.

 

“Commitment” means, for each

Lender, the obligation of such Lender to make Loans to, and participate in

Facility Letters of Credit issued upon the application of, the Borrower in an

aggregate amount not exceeding the amount set forth opposite its signature below

or as set forth in any Notice of Assignment relating to any assignment that has

become effective pursuant to Section 13.3.2, as such amount may be modified

from time to time pursuant to the terms hereof.

 

“Competitive Bid Borrowing

Notice” is defined in Section 2.15(f).

 

“Competitive Bid Lender” means

a Lender or Designated Lender which has a Competitive Bid Loan outstanding.

“Competitive Bid Loan” is a

Loan made pursuant to Section 2.15 hereof.

 

“Competitive Bid Note” means

the promissory note payable to the order of each Lender in the form attached

hereto as Exhibit B-2 to be used to evidence any Competitive Bid Loans

which such Lender elects to make (collectively, the “Competitive Bid Notes”).

 

“Competitive Bid Quote” means a

response submitted by a Lender to the Administrative Agent or the Borrower, as

the case may be with respect to an Invitation for Competitive Bid Quotes in the

form attached as Exhibit C-3.

 

“Competitive Bid Quote Request”

means a written request from Borrower to Administrative Agent in the form

attached as Exhibit C­1.

 

“Competitive LIBOR Margin”

means, with respect to any Competitive Bid Loan for a LIBOR Interest Period,

the percentage established in the applicable Competitive Bid Quote which is to

be used to determine the interest rate applicable to such Competitive Bid Loan.

 

“Condemnation” is defined in

Section 8.9.

 

“Consolidated Net Income”

means, for any period, consolidated net income (or loss) of the General

Partner, the Borrower and their Subsidiaries for such period determined on a

consolidated basis in accordance with GAAP; provided that there shall be

excluded (a) the income (or deficit) of any other Person accrued prior to

the date it becomes a Subsidiary of the General Partner or the Borrower or is

merged into or consolidated with the General Partner, the Borrower or any of

their Subsidiaries and (b) the undistributed earnings of any Subsidiary to

the extent that the declaration or payment of dividends or similar

distributions by such Subsidiary is not at the time permitted by the terms of

any contractual obligation or requirement of law applicable to such Subsidiary.

 

“Consolidated Net Worth” means,

as of any date of determination, an amount equal to (a) Market

Capitalization as of such date minus (b) Total Liabilities as of such

date.

 

7

 

“Consolidated Secured

Indebtedness” means, as of any date of determination, the sum of (a) the

aggregate principal amount of all Indebtedness of the General Partner, the

Borrower and their respective Subsidiaries outstanding at such date which is

secured by a Lien on any asset of the General Partner, the Borrower or any of

their respective Subsidiaries and (b) the excess, if any, of (i) the

aggregate principal amount of all Unsecured Indebtedness of the Subsidiaries of

the General Partner or the Borrower over (ii) $5,000,000, determined on a

consolidated basis in accordance with GAAP and (c) the General Partner’s and

Borrower’s pro rata share of any secured debt in Investment Affiliates.

 

“Consolidated Senior Unsecured

Indebtedness” means, as of any date of determination, the sum of the aggregate

principal amount of all Indebtedness of the General Partner, the Borrower and

their Subsidiaries outstanding at such date, including the Facility Letter of

Credit Obligations, which does not constitute Consolidated Secured

Indebtedness, but excluding Indebtedness which is contractually subordinated to

the Indebtedness of the General Partner, the Borrower and their Subsidiaries

under the Loan Documents on customary terms acceptable to the Administrative

Agent.

 

“Consolidated Total

Indebtedness” means, as of any date of determination, all Indebtedness of the

General Partner, the Borrower and their respective Subsidiaries outstanding at

such date, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Unsecured

Indebtedness” means, as of any date of determination, the sum of the aggregate

principal amount of all Indebtedness of the General Partner, the Borrower and

their Subsidiaries outstanding at such date, including the Facility Letter of

Credit Obligations, which does not constitute Consolidated Secured

Indebtedness.

 

“Controlled Group” means all

members of a controlled group of corporations and all trades or businesses

(whether or not incorporated) under common control which, together with the

General Partner, the Borrower or any of their Subsidiaries, are treated as a

single employer under Section 414 of the Code.

 

“Conversion/Continuation

Notice” is defined in Section 2.11.

 

“Debt Service” means, for any

fiscal quarter, Interest Expense plus scheduled principal  amortization payments (excluding balloon

payments), provided that in the case of amortization payments made less

frequently than quarterly, 25% of the aggregate amortization payments for the

fiscal year including such fiscal quarter shall be included in Debt Service for

such quarter.

 

“Default” means a Default

described in Article VIII.

 

“Defaulting Lender” means any

Lender which fails or refuses to perform its obligations under this Agreement

within the time period specified for performance of such obligation, or, if no

time frame is specified, if such failure or refusal continues for a period of

five Business Days after written notice from the Administrative Agent; provided

that if such Lender cures such failure or refusal, such Lender shall cease to

be a Defaulting Lender.

 

 “Designated Lender” means any Person who has been designated by a

Lender to fund Competitive Bid Loans.

 

“Designating Lender” is defined

in Section 13.4.

 

“Designation Agreement” means a

designation agreement entered into by a Lender (other than a Designated Lender)

and a Designated Lender, and accepted by the Administrative Agent and Borrower,

in substantially the form of Exhibit I hereto.

 

“Documentation Agent” means

PNC.

 

“EBITDA” means operating income

before extraordinary items, equity in earnings of Investment Affiliates and

minority interest in earnings, as reported by the General Partner, the Borrower

and their Subsidiaries in accordance with GAAP, plus (i) Interest Expense

(excluding the General Partner’s and the Borrower’s pro rata share of interest

expense of Investment Affiliates), depreciation, amortization and income tax

(if any) expense plus (ii) (without redundancy) the General Partner’s and the

Borrower’s pro rata share of Net Operating Income from Investment Affiliates.

 

8

 

“Environmental Laws” means any

and all foreign, Federal, state, local or municipal laws, rules, orders,

regulations, statutes, ordinances, codes, decrees, requirements of any

Governmental Authority or other Requirements of Law (including common law)

regulating, relating to or imposing liability or standards of conduct

concerning protection of human health or the environment, as now or may at any

time hereafter be in effect, in each case to the extent the foregoing are

applicable to the General Partner, the Borrower or any Subsidiary or any of

their respective assets or Projects.

 

“Equity Value” means Net

Operating Income capitalized at a 9.5% rate less any Indebtedness or, in the

case of assets acquired after the closing of the Facility, the purchase price

less any Indebtedness attributable to such asset.

 

“ERISA” means the Employee

Retirement Income Security Act of 1974, as amended from time to time, and any

rule or regulation issued thereunder.

 

“Excluded Taxes” means, in the

case of each Lender or applicable Lending Installation and the Administrative

Agent, taxes imposed on its overall income or net worth, and franchise taxes

imposed on it, by (i) the jurisdiction under the laws of which such Lender or

the Administrative Agent is incorporated or organized or (ii) the jurisdiction

in which the Administrative Agent’s or such Lender’s principal executive office

or such Lender’s applicable Lending Installation is located.

 

“Facility Fee” is defined in

Section 2.5.

 

“Facility Letter of Credit”

means a Letter of Credit issued hereunder.

 

“Facility Letter of Credit

Obligations” means, as at the time of determination thereof, all liabilities,

whether actual or contingent, of the Borrower with respect to Facility Letters

of Credit, including the sum of (a) the Reimbursement Obligations and

(b) the aggregate undrawn face amount of the then outstanding Facility

Letters of Credit.

 

“Facility Termination Date”

means February 28, 2004.

 

“Federal Funds Effective Rate”

means, for any day, an interest 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 for

such day (or, if such day is not a Business Day, for the immediately preceding

Business Day) by the Federal Reserve Bank of New York, or, if such rate is not

so published for any day which is a Business Day, the average of the quotations

at approximately 10 a.m. (Chicago time) on such day on such transactions

received by the Administrative Agent from three Federal funds brokers of

recognized standing selected by the Administrative Agent in its sole

discretion.

 

“Fitch” means Fitch, Inc., and

its successors.

 

“Fixed Charges” means, for any

fiscal quarter, Debt Service for such quarter plus Preferred Dividends.

 

“Funded Percentage” means, with

respect to any Lender at any time, a percentage equal to a fraction the

numerator of which is the amount actually disbursed and outstanding to Borrower

by such Lender at such time (including Swing Line Loans and Competitive Bid

Loans), and the denominator of which is the total amount disbursed and

outstanding to Borrower by all of the Lenders at such time (including Swing

Line Loans and Competitive Bid Loans).

 

“Funds From Operations” means,

for any period, Consolidated Net Income for such period without giving effect

to depreciation and amortization, gains or losses from extraordinary items,

gains or losses on sales of real estate, gains or losses on investments in

marketable securities and any provisions for or benefits from income taxes for

such period.

 

“GAAP” means generally accepted

accounting principles in the United States of America as in effect from time to

time, applied in a manner consistent with that used in preparing the financial

statements referred to in Section 7.1.

 

“General Partner” means

Duke-Weeks Realty Corporation, an Indiana corporation, the sole general partner

of the Borrower, and its successors and assigns.

 

9

 

“Governmental Authority” means

any nation or government, any state or other political subdivision thereof and

any entity exercising executive, legislative, judicial, regulatory or

administrative functions of or pertaining to government.

 

“Guarantee Obligation” means,

as to any Person (the “guaranteeing person”), any obligation (determined

without duplication) of (a) the guaranteeing person or (b) another

Person (including, without limitation, any bank under any Letter of Credit) to

induce the creation of which the guaranteeing person has issued a

reimbursement, counter-indemnity or similar obligation, in either case

guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or

other obligations (the “primary obligations”) of any other third Person (the

“primary obligor”) in any manner, whether directly or indirectly, including,

without limitation, any obligation of the guaranteeing person, whether or not

contingent, (i) to purchase any such primary obligation or any property

constituting direct or indirect security therefor, (ii) to advance or

supply funds (1) for the purchase or payment of any such primary

obligation or (2) to maintain working capital or equity capital of the

primary obligor or otherwise to maintain the net worth or solvency of the

primary obligor, (iii) to purchase property, securities or services

primarily for the purpose of assuring the owner of any such primary obligation

of the ability of the primary obligor to make payment of such primary

obligation or (iv) otherwise to assure or hold harmless the owner of any

such primary obligation against loss in respect thereof; provided, however,

that the term Guarantee Obligation shall not include endorsements of

instruments for deposit or collection in the ordinary course of business. The

amount of any Guarantee Obligation of any guaranteeing person shall be deemed

to be the maximum stated amount of the primary obligation relating to such

Guarantee Obligation (or, if less, the maximum stated liability set forth in

the instrument embodying such Guarantee Obligation), provided, that in the

absence of any such stated amount or stated liability, the amount of such Guarantee

Obligation shall be such guaranteeing person’s maximum reasonably anticipated

liability in respect thereof as determined by the Borrower in good faith.

Notwithstanding the foregoing, the term Guarantee Obligation shall not include

a Guarantee by Borrower or General Partner of secured Indebtedness of an

Investment Affiliate (“Investment Affiliate Debt”) if all of the following

conditions are met:

 

(a)           The Guarantee

provided by the Borrower and/or General Partner is limited to an amount not

greater than 50% of the value of the properties securing the Investment

Affiliate Debt (computed by capitalizing the Property Operating Income from

such properties at a rate of 9.5%), and

 

(b)           The Investment

Affiliate Debt is for a stabilized property (defined for this test as a

property that is at least 90% occupied or a property that has been in operation

for greater than one year) or pool of stabilized properties, and

 

(c)           The amount of the

Investment Affiliate Debt that is being guaranteed (together with any other

Investment Affiliate Debt of such Investment Affiliate that is secured by the

same collateral that secures the Investment Affiliate Debt being guarantied) is

not more than 50% of the value of the properties securing such Investment

Affiliate Debt (computed by capitalizing the Property Operating Income from

such properties at a rate of 9.5%), and,

 

(d)           The aggregate amount

excluded under Guarantee Obligations does not exceed 2.5% of Market

Capitalization.

 

“Guarantor” means the General

Partner in its capacity as the guarantor under the  Guaranty.

 

“Guaranty” means that certain

Third Amended and Restated Guaranty of even date herewith executed by the

Guarantor in favor of the Administrative Agent, for the ratable benefit of the

Lenders, as it may be amended or modified and in effect from time to time.

 

“Indebtedness” of any Person at

any date means without duplication, (a) all indebtedness of such Person

for borrowed money, (b) all obligations of such Person for the deferred

purchase price of property or services (other than current trade liabilities

incurred in the ordinary course of business and payable in accordance with

customary practices), to the extent such obligations constitute indebtedness

for the purposes of GAAP, (c) any other indebtedness of such Person which

is evidenced by a note, bond, debenture or similar instrument, (d) all

Capitalized Lease Obligations, (e) all obligations of such Person in

respect of acceptances issued or created for the account of such Person,

(f) all Guarantee Obligations of such Person (excluding in any calculation

of consolidated indebtedness of the Borrower, Guarantee  Obligations of the Borrower in respect of

primary obligations of any Subsidiary), (g) all reimbursement obligations of

such Person for letters

 

10

 

of credit and other contingent

liabilities to the extent not otherwise included under another clause of this

definition, (h) all liabilities secured by any lien (other than liens for

taxes not yet due and payable) on any property owned by such Person even though

such Person has not assumed or otherwise become liable for the payment thereof,

(i) any repurchase obligation or liability of such Person or any of its

Subsidiaries with respect to accounts or notes receivable sold by such Person

or any of its Subsidiaries, (j) any other transaction which is the

functional equivalent of or takes the place of borrowing but which does not

constitute a liability on the consolidated balance sheet of such Person, (k) such

Person’s pro rata share of debt in Investment Affiliates and (l) any loans

where such Person is liable as a general partner.

 

“Indemnified Parties” means

Arranger and the Administrative Agent.

 

“Interest Expense” means all

interest expense of the General Partner, the Borrower and their Subsidiaries

determined in accordance with GAAP plus (i) the General Partner’s and the

Borrower’s pro rata share of interest expense in Investment Affiliates,

(ii) capitalized interest not covered by an interest reserve from a loan

facility, (iii) 100% of any accrued, or paid interest incurred on any

obligation for which the Borrower or the General Partner is wholly or partially

liable under repayment, interest carry, or performance guarantees, or other

relevant liabilities, provided that no expense shall be included more than once

in such calculation even if it falls within more than one of the foregoing

categories.

 

“Interest Period” means a LIBOR

Interest Period or Absolute Interest Period.

 

“Investment” of a Person means

any loan, advance (other than commission, travel and similar advances to

officers and employees made in the ordinary course of business), extension of

credit (other than accounts receivable arising in the ordinary course of

business on terms customary in the trade), deposit account or contribution of

capital by such Person to any other Person or any investment in, or purchase or

other acquisition of, the stock, partnership interests, notes, debentures or

other securities of any other Person made by such Person.

 

“Investment Affiliate” means

any Person in which the General Partner or the Borrower, directly or

indirectly, has an ownership interest, whose financial results are not

consolidated under GAAP with the financial results of the General Partner or

the Borrower on the consolidated financial statements of the General Partner or

the Borrower.

 

“Invitation for Competitive Bid

Quotes” means a written notice to the Lenders from the Administrative Agent in

the form attached as Exhibit C-2 for Competitive Bid Loans made pursuant

to Section 2.15.

 

“Issuing Bank” means, with

respect to each Facility Letter of Credit, the Lender which issues such

Facility Letter of Credit.

 

“Lender Affiliate” means, (a)

with respect to any Lender, (i) an Affiliate of such Lender or (ii) any entity

(whether a corporation, partnership, trust or otherwise) that is engaged in

making, purchasing, holding or otherwise investing in bank loans and similar

extensions of credit in the ordinary course of its business and is administered

or managed by a Lender or an Affiliate of such Lender and (b) with respect to

any Lender that is a fund which invests in bank loans and similar extensions of

credit, any other fund that invests in bank loans and similar extensions of

credit and is managed by the same investment advisor as such Lender or by an

Affiliate of such investment advisor.

 

“Lenders” means the lending

institutions listed on the signature pages of this Agreement, their respective

successors and assigns and any other lending institutions that subsequently

become parties to this Agreement pursuant to Section 13.3 and except when

used in reference to an obligation of the Lenders which is based on their

Percentage of the Aggregate Commitment, each Designated Lender.

 

“Lending Installation” means,

with respect to a Lender, any office, branch, subsidiary or affiliate of such

Lender.

 

“Letter of Credit” of a Person

means a letter of credit or similar instrument which is issued upon the

application of such Person or upon which such Person is an account party or for

which such Person is in any way liable.

 

“Letter of Credit Collateral

Account” is defined in Section 3.13.

 

11

 

“LIBOR Advance” means an

Advance which bears interest at a LIBOR Rate, whether a ratable Advance based

on the LIBOR Applicable Margin or a Competitive Bid Loan based on a Competitive

LIBOR Margin.

 

“LIBOR Applicable Margin”

means, as of any date with respect to any LIBOR Interest Period, the Applicable

Margin in effect for such LIBOR Interest Period as determined in accordance

with Section 2.4 hereof.

 

“LIBOR Base Rate” means, with

respect to a LIBOR Advance for the relevant LIBOR Interest Period, the offered

rate for the period equal to or next greater than the LIBOR Interest Period for

U.S. Dollar deposits of not less than $1,000,000.00 as of 11:00 A.M. City of

London, England time two Business Days prior to the first day of the LIBOR

Interest Period as shown on the display designated as “British Bankers

Association Interest Settlement Rates” on Reuters for the purpose of displaying

such rate.  In the event that such rate

is not available on Reuters, then such offered rate shall be otherwise

independently determined by Administrative Agent from an alternate,

substantially similar independent source available to Administrative Agent or

shall be calculated by Administrative Agent by a substantially similar

methodology as that theretofore used to determine such offered rate.

 

“LIBOR Interest Period” means

with respect to a LIBOR Advance, a period of one, two, three or six months

commencing on a Business Day selected by the Borrower pursuant to this

Agreement.  Such LIBOR Interest Period

shall end on (but exclude) the day which corresponds numerically to such date

one, two, three or six months thereafter, provided, however, that if there is

no such numerically corresponding day in such next, second, third or sixth

succeeding month, such LIBOR Interest Period shall end on the last Business Day

of such next, second, third or sixth succeeding month.  If a LIBOR Interest Period would otherwise

end on a day which is not a Business Day, such LIBOR Interest Period shall end

on the next succeeding Business Day, provided, however, that if said next

succeeding Business Day falls in a new calendar month, such LIBOR Interest

Period shall end on the immediately preceding Business Day.  In no event shall a LIBOR Interest Period

extend beyond the then current Facility Termination Date.

 

“LIBOR Loan” means a Loan which

bears interest at a LIBOR Rate.

 

“LIBOR Rate” means, with

respect to a LIBOR Advance for the relevant LIBOR Interest Period, the sum of

(i) the quotient of (a) the LIBOR Base Rate applicable to such LIBOR Interest

Period, divided by (b) one minus the Reserve Requirement (expressed as a

decimal) applicable to such LIBOR Interest Period, plus (ii) the LIBOR

Applicable Margin in effect on the day that such LIBOR Base Rate was

determined. The LIBOR Rate shall be rounded to the next higher multiple of

1/100 of 1% if the rate is not a multiple of 1/16 of 1% or of 1/100 of 1%.

 

“Lien” means any lien

(statutory or other), mortgage, pledge, hypothecation, assignment, deposit

arrangement, encumbrance or preference, priority or other security agreement or

preferential arrangement of any kind or nature whatsoever (including, without

limitation, the interest of a vendor or lessor under any conditional sale,

Capitalized Lease or other title retention agreement).

 

“Loan” means, with respect to a

Lender, such Lender’s portion of any Advance.

 

“Loan Documents” means this

Agreement, the Notes, the Guaranty, and any other document from time to time

evidencing or securing indebtedness or obligations incurred by the General

Partner or the Borrower under this Agreement, as any of the foregoing may be

amended or modified from time to time.

 

“Managing Agents” means

Wachovia, BOA, and Commerz.

 

“Market Capitalization” means

(a) Total Property Operating Income capitalized at 9.5%, plus

(b) ”earnings from service operations” capitalized at 20%, plus

(c) 50% of Assets Under Development (75% for a property that has signed

leases for 75% or more of the square feet of the space), plus (d) the

amount of any cash equivalents, excluding tenant security and other restricted

deposits, plus (e) the lower of book value or market value of land not

under development.

 

12

 

“Material Adverse Effect” means

a material adverse effect on (i) the business, Property, condition (financial

or otherwise), results of operations, or prospects of the General Partner, the

Borrower and their Subsidiaries taken as a whole, (ii) the ability of the

General Partner or the Borrower to perform their obligations under the Loan

Documents, or (iii) the validity or enforceability of any of the Loan Documents

or the rights or remedies of the Administrative Agent or the Lenders

thereunder.

 

“Materials of Environmental

Concern” means any gasoline or petroleum (including crude oil or any fraction

thereof) or petroleum products or any hazardous or toxic substances, materials

or wastes, defined or regulated as such in or under any Environmental Law,

including, without limitation, asbestos, polychlorinated biphenyls and

urea-formaldehyde insulation.

 

“Maximum Legal Rate” means the

maximum nonusurious interest rate, if any, that at any time or from time to

time may be contracted for, taken, reserved, charged or received on the

indebtedness evidenced by the Note and as provided for herein or in the Note or

other Loan Documents, under the laws of such state or states whose laws are held

by any court of competent jurisdiction to govern the interest rate provisions

of the Loan.

 

“Moody’s” means Moody’s

Investors Service, Inc. and its successors.

 

“Multiemployer Plan” means a

Plan maintained pursuant to a collective bargaining agreement or any other

arrangement to which the General Partner, the Borrower or any member of the

Controlled Group is a party to which more than one employer is obligated to

make contributions.

 

“Net Operating Income” means,

with respect to any Investment Affiliate or Subsidiary, for any period, such

entity’s operating income minus all operating expenses (as determined in

accordance with GAAP) incurred in connection with and directly attributable to

the generation of such operating income but excluding interest expense and

other debt service charges and any non–cash charges such as depreciation

or amortization of financing costs.

 

“Note” means a promissory note,

in substantially the form of Exhibit B-1 hereto, duly executed by the Borrower

and payable to the order of a Lender in the amount of its Commitment, including

any amendment, modification, renewal or replacement of such promissory note or

a competitive bid note, in substantially the form of Exhibit B-2 hereto, duly

executed by the Borrower and payable to the order of a Competitive Bid Lender,

including any amendment, modification, renewal or replacement of such note.

 

“Notice of Assignment” is

defined in Section 13.3.2.

 

“Obligations” means the

Advances, the Facility Letter of Credit Obligations and all accrued and unpaid

fees and all other obligations of Borrower to the Administrative Agent or the

Lenders arising under this Agreement or any of the other Loan Documents.

 

“Other Taxes” is defined in

Section 4.5(ii).

 

“Participants” is defined in

Section 13.2.1.

 

“Payment Date” means, with

respect to the payment of interest accrued on any Advance, the first day of

each calendar month.

 

“PBGC” means the Pension

Benefit Guaranty Corporation, or any successor thereto.

 

“Percentage” means for each

Lender the ratio that such Lender’s Commitment bears to the Aggregate

Commitment, expressed as a percentage.

 

13

 

“Permitted Liens” are defined

in Section 7.15.

 

“Person” means any natural

person, corporation, firm, joint venture, partnership, association, enterprise,

trust or other entity or organization, or any government or political

subdivision or any agency, department or instrumentality thereof.

 

“Plan” means an employee

pension benefit plan which is covered by Title IV of ERISA or subject to the

minimum funding standards under Section 412 of the Code as to which the General

Partner, the Borrower or any member of the Controlled Group may have any

liability.

 

“Preferred Dividends” shall

mean, for any period, without duplication of such amounts as constitute

intercompany debts or distributions, the sum of (a) dividends or distributions

due and payable or accrued during such period on preferred stock issued by

General Partner or a Subsidiary, and (b) distributions which are the functional

equivalent of preferred dividends (i.e., which the issuer is required to make

prior to distributions on another class or other classes of partnership

interests) and which are due and payable or accrued during such period on

preferred partnership interests issued by Borrower or any other Subsidiary.

 

“Prime Rate” means a rate per

annum equal to the prime rate of interest announced from time to time by Bank

One or its parent (which is not necessarily the lowest rate charged to any

customer), changing when and as said prime rate changes.

 

“Project” means any real estate

asset owned or operated by the Borrower or any Subsidiary and operated or

intended to be operated as an office, industrial or retail property.

 

“Property” of a Person means

any and all property, whether real, personal, tangible, intangible, or mixed,

of such Person, or other assets owned, leased or operated by such Person.

 

“Property Operating Income”

means, with respect to any Project or other real estate asset, for any period,

earnings from rental operations (computed in accordance with GAAP) attributable

to such Project or other real estate asset plus depreciation, amortization and

interest expense for such period, and, if such period is less than a year,

adjusted by straight lining various ordinary operating expenses which are

payable less frequently than once during every such period (e.g. real estate

taxes and insurance).

 

“Purchasers” is defined in

Section 13.3.1.

 

“Regulation U” means Regulation

U of the Board of Governors of the Federal Reserve System as from time to time

in effect and any successor or other regulation or official interpretation of

said Board of Governors relating to the extension of credit by banks for the

purpose of purchasing or carrying margin stocks applicable to member banks of

the Federal Reserve System.

 

“Reimbursement Obligations”

means at any time, the aggregate of the Obligations of the Borrower to the

Lenders, the Issuing Bank and the Administrative Agent in respect of all

unreimbursed payments or disbursements made by the Lenders, the Issuing Bank

and the Agent under or in respect of the Facility Letters of Credit.

 

“Reportable Event” means a

reportable event as defined in Section 4043 of ERISA and the regulations issued

under such section, with respect to a Plan, excluding, however, such events as

to which the PBGC by regulation waived the requirement of Section 4043(a) of

ERISA that it be notified within 30 days of the occurrence of such event,

provided, however, that a failure to meet the minimum funding standard of

Section 412 of the Code and of Section 302 of ERISA shall be a Reportable Event

regardless of the issuance of any such waiver of the notice requirement in

accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

 

“Required Lenders” means

Lenders in the aggregate having at least 66 2/3% of the Aggregate Commitment

(not held by Defaulting Lenders who are not entitled to vote) or, if the

Aggregate Commitment has been terminated, Lenders in the aggregate holding at

least 66 2/3% of the aggregate unpaid principal amount of the outstanding

Advances (not held by Defaulting Lenders who are not entitled to vote).

 

14

 

“Reserve Requirement” means,

with respect to a LIBOR Interest Period, the maximum aggregate reserve

requirement on Eurocurrency liabilities.

 

“Section” means a numbered

section of this Agreement, unless another document is specifically referenced.

 

“Single Employer Plan” means a

Plan maintained by the General Partner or the Borrower or any member of the

Controlled Group for employees of the General Partner or the Borrower or any

member of the Controlled Group.

 

“Subsidiary” means, as to any

Person, a corporation, partnership or other entity of which shares of stock or

other ownership interests having ordinary voting power (other than stock or

such other ownership interests having such power only by reason of the

happening of a contingency) to elect a majority of the board of directors or

other managers of such corporation, partnership or other entity are at the time

owned, or the management of which is otherwise controlled, directly or

indirectly through one or more intermediaries, or both, by such Person,

including all subsidiaries consolidated pursuant to GAAP.  Unless otherwise qualified, all references

to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a

Subsidiary or Subsidiaries of the Borrower or the General Partner.

 

“Subsidiary Guarantor” means a

Subsidiary of Borrower or General Partner that does not have any Indebtedness

and which executes and delivers a Subsidiary Guaranty.

 

“Subsidiary Guaranty” means any

guaranty executed and delivered by any Subsidiary of the Borrower or General

Partner, substantially in the form of Exhibit K, as the same may be amended,

supplemented or otherwise modified from time to time.

 

“Substantial Portion” means,

with respect to the Property of the General Partner, the Borrower or their

Subsidiaries, Property which (i) represents more than 10% of the consolidated

assets of the General Partner, the Borrower and their Subsidiaries as disclosed

on the most recently issued quarterly consolidated financial statements of the

General Partner, the Borrower and their Subsidiaries, or (ii) is responsible

for more than 10% of the consolidated net sales or of the consolidated net

income of the General Partner, the Borrower and their Subsidiaries as reflected

in the financial statements referred to in clause (i) above.

 

“Swing Line Lender” shall mean

Administrative Agent, in its capacity as a Lender.

 

“Swing Line Loans” means loans

of up to $40,000,000 made by the Swing Line Lender in accordance with

Section 2.14 hereof.

 

“Syndication Agent” means Wells

Fargo.

 

“S&P” means Standard &

Poor’s Ratings Group and its successors.

 

“Taxes” means any and all

present or future taxes, duties, levies, imposts, deductions, charges or

withholdings, and any and all liabilities with respect to the foregoing, but

excluding Excluded Taxes and Other Taxes.

 

“Total Liabilities” means all

Indebtedness plus all other GAAP liabilities of the Borrower, General Partner

and their respective Subsidiaries.

 

“Total Property Operating

Income” means the sum of (i) earnings from rental operations (computed in

accordance with GAAP) plus depreciation, amortization and interest expense

(adjusted for any acquisitions and divestitures), and (ii) (without

redundancy) the Borrower’s pro rata share of Net Operating Income from

Investment Affiliates. The earnings from rental operations shall be adjusted to

include pro forma earnings (as substantiated to the satisfaction of the

Administrative Agent) for an entire quarter for any property acquired or placed

in service during the quarter and to exclude earnings during such quarter from

any property not owned as of the end of the quarter.

 

15

 

“Transferee” is defined in

Section 13.5.

 

“Type” means, with respect to

any Advance, its nature as a ABR Advance or a LIBOR Advance.

 

“Unencumbered Asset” means,

with respect to any Project which is in service, at any date of determination,

the circumstance that such asset on such date (a) is not subject to any

Liens or claims (including restrictions on transferability or assignability) of

any kind (including any such Lien, claim or restriction imposed by the

organizational documents of the Borrower or any Subsidiary, but excluding

Permitted Liens other than those identified in Sections 7.15(v) and (vi)),

(b) is not subject to any agreement (including (i) any agreement

governing Indebtedness incurred in order to finance or refinance the

acquisition of such asset, and (ii) if applicable, the organizational

documents of the Borrower or any Subsidiary) which prohibits or limits the

ability of the General Partner, the Borrower or any of their Subsidiaries to

create, incur, assume or suffer to exist any Lien upon any assets or Capital

Stock of the General Partner, the Borrower or any of their Subsidiaries, and

(c) is not subject to any agreement (including any agreement governing

Indebtedness incurred in order to finance or refinance the acquisition of such

asset) which entitles any Person to the benefit of any Lien (but excluding

Permitted Liens other than those identified in Sections 7.15(v) and (vi))

on any assets or Capital Stock of the General Partner, the Borrower or any of

their Subsidiaries, or would entitle any Person to the benefit of any Lien (but

excluding Permitted Liens other than those identified in Sections 7.15(v)

and (vi)) on such assets or Capital Stock upon the occurrence of any contingency

(including, without limitation, pursuant to an “equal and ratable” clause), and

(d) is 100% owned in fee simple by the Borrower or a Subsidiary Guarantor. For

the purposes of this Agreement, any Property of a Subsidiary shall not be

deemed to be unencumbered unless both (i) such Property and (ii) all

Capital Stock of such Subsidiary held by the General Partner or the Borrower is

unencumbered.

 

“Unfunded Liabilities” means

the amount (if any) by which the present value of all vested nonforfeitable benefits

under all Single Employer Plans exceeds the fair market value of all such Plan

assets allocable to such benefits, all determined as of the then most recent

valuation date for such Plans.

 

“Unmatured Default” means an

event which but for the lapse of time or the giving of notice, or both, would

constitute a Default.

 

“Unrestricted Cash and Cash

Equivalents” means, as of any date of determination, the sum of (a) the

aggregate amount of Unrestricted cash then held by the Borrower or any of its

consolidated Subsidiaries and (b) the aggregate amount of Unrestricted Cash

Equivalents (valued at the lower of cost and fair market value) then held by

the Borrower or any of its consolidated Subsidiaries. As used in this

definition, “Unrestricted” means the specified asset is not subject to any

Liens or claims of any kind in favor of any Person.

 

“Value of Unencumbered Assets”

means, as of the end of a quarter, the value of all Unencumbered Assets as of

such date (other than those that are not approved by the Required Lenders),

determined by capitalizing the Property Operating Income for such quarter (as

annualized) from such Unencumbered Assets at a rate of 9.5%. The Required

Lenders shall have the right to approve assets which are included in the

determination of the Value of Unencumbered Assets. The substitution or addition

of new assets shall also be subject to the approval of the Required Lenders. If

an approved asset is acquired during a quarter then Borrower shall be entitled

to include pro forma Property Operating Income from such property for the

entire quarter in the foregoing calculation. If an asset is not owned as of the

last day of a quarter then no value shall be included based on capitalizing

Property Operating Income from such asset.

 

“Wholly-Owned Subsidiary” of a

Person means (i) any Subsidiary all of the outstanding voting securities of

which shall at the time be owned or controlled, directly or indirectly, by such

Person or one or more Wholly-Owned Subsidiaries of such Person, or by such

Person and one or more Wholly-Owned Subsidiaries of such Person, or (ii) any

partnership, association, joint venture or similar business organization 100%

of the ownership interests having ordinary voting power of which shall at the

time be so owned or controlled.

 

16

 

The foregoing definitions shall

be equally applicable to both the singular and plural forms of the defined

terms.

 

ARTICLE

II

THE CREDIT

 

2.1           Commitment.  From and including the date of this

Agreement and prior to the Facility Termination Date, each Lender severally

agrees, subject to the terms and conditions set forth in this Agreement, to

make Loans to the Borrower from time to time prior to the Facility Termination

Date, provided that the making of any such Loan will not cause the total

of the outstanding principal balance of all Loans (including Swing Line Loans

and Competitive Bid Loans) and the Facility Letter of Credit Obligations to

exceed the Aggregate Commitment. Except for Swing Line Loans and Competitive

Bid Loans each Lender shall fund its Percentage of each Advance and no Lender

will be required to fund any amount, which when aggregated with such Lender’s

Percentage of: (i) all other Advances (other than

Competitive Bid Loans) then outstanding, (ii)

Facility Letter of Credit Obligations, and (iii) all

Swing Line Loans, would exceed such Lender’s Commitment.  Subject to the terms of this Agreement, the

Borrower may borrow, repay and reborrow at any time prior to the Facility

Termination Date. The Commitments of each Lender to lend hereunder shall expire

on the Facility Termination Date. The Aggregate Commitment may be increased

from time to time by the addition of a new Lender or the increase of the

Commitment of an existing Lender with the consent of only the Borrower, the

Administrative Agent, and the new or existing Lender providing such additional

Commitment so long as the Aggregate Commitment does not exceed $600,000,000

less any voluntary reductions pursuant to Section 2.7. Such increases shall be

evidenced by the execution and delivery of an Amendment Regarding Increase in

the form of Exhibit J attached hereto by the Borrower, the Administrative

Agent and the new Lender or existing Lender providing such additional

Commitment, a copy of which shall be forwarded to each Lender by the

Administrative Agent promptly after execution thereof. On the effective date of

each such increase in the Aggregate Commitment, the Borrower and the

Administrative Agent shall cause the new or existing Lenders providing such

increase to hold its or their Percentage of all ratable Advances outstanding at

the close of business on such day, by either funding more than its or their

Percentage of new ratable Advances made on such date or purchasing shares of

outstanding ratable Loans held by the other Lenders or a combination thereof.

The Lenders agree to cooperate in any required sale and purchase of outstanding

ratable Advances to achieve such result. Borrower agrees to pay all fees

associated with the increase in the Aggregate Commitment including any amounts

due under Section 4.4 in connection with any reallocation of LIBOR

Advances. In no event will such new or existing Lenders providing the increase

be required to fund or purchase a portion of any Competitive Bid Loan or

Swingline Loan to comply with this Section on such date.

 

2.2           Final Principal Payment.  Any outstanding Advances and all other

unpaid Obligations shall be paid in full by the Borrower on the Facility

Termination Date.

 

2.3           Loans.  Each Advance hereunder shall consist of Loans made from the

several Lenders ratably in proportion to the ratio that their respective

Commitments bear to the Aggregate Commitment except for Swing Line Loans which

shall be made by the Swing Line Lender in accordance with Section 2.14 and

Competitive Bid Loans made in accordance with Section 2.15.  The Advances may be ABR Advances or LIBOR

Advances, or a combination thereof, selected by the Borrower in accordance with

Sections 2.10 and 2.11.

 

2.4           Applicable Margins.

The ABR Applicable Margin and the LIBOR Applicable Margin to be used in

calculating the interest rate applicable to different Types of Advances shall

vary from time to time in accordance with the long-term unsecured debt ratings

from Moody’s, Fitch and S&P of the General Partner and the Borrower. In the

event the General Partner and the Borrower have different ratings, the rating

of the higher rated entity shall be used. In the event the rating agencies are

split on the rating for the higher rated entity, the second highest rating for

such entity shall be deemed to be the applicable rating (e.g., if the higher

rated entity’s Moody’s debt rating is Baa1, its S&P debt rating is BBB and

its Fitch’s rating is BBB, then the Applicable Margins shall be computed based

on the S&P rating), and the Applicable Margins shall be adjusted effective

on the next Business Day following any change in the higher rated entity’s

Moody’s

 

17

 

debt rating, S&P’s debt

rating and/or Fitch’s debt rating, as the case may be. The applicable debt

ratings and the Applicable Margins are set forth in the table attached as Exhibit

A. In the event that S&P, Fitch or Moody’s or any two of them shall

discontinue their ratings of the REIT industry, the General Partner or the

Borrower, a mutually agreeable substitute rating agency (or two mutually

agreeable substitute agencies if two of the existing rating agencies

discontinue such ratings) shall be selected by the Required Lenders and the

Borrower. If the Required Lenders and the Borrower cannot agree on a substitute

rating agency or substitute rating agencies within thirty (30) days of such

discontinuance, or if S&P, Fitch, and Moody’s shall discontinue their

ratings of the REIT industry, the Borrower, or the General Partner, the

Applicable Margin to be used for the calculation of interest on Advances

hereunder shall be the highest Applicable Margin for each Type.

 

If a rating agency downgrade or

discontinuance results in an increase in the ABR Applicable Margin, the LIBOR

Applicable Margin, or Facility Fee Rate and if such increase is reversed and

the affected Applicable Margin is restored within ninety (90) days thereafter,

at the Borrower’s request, the Borrower shall receive a credit against interest

next due the Lenders equal to interest accrued from time to time during such

period of downgrade or discontinuance and actually paid by the Borrower on the

Advances at the differential between such Applicable Margins, and the

differential of the Facility Fee paid during such period of downgrade.

 

If a rating agency upgrade

results in a decrease in the ABR Applicable Margin, LIBOR Applicable Margin or

Facility Fee Rate and if such upgrade is reversed  and the affected Applicable Margin is restored within ninety (90)

days thereafter, Borrower shall be required to pay an amount to the Lenders

equal to the interest differential on the Advances and the differential on the

Facility Fees during such period of upgrade.

 

2.5           Facility Fee.  The Borrower agrees to pay to the Administrative

Agent for the account of each Lender a facility fee (the “Facility Fee”)

calculated at a per annum percentage (“Facility Fee Rate”) of the total

Aggregate Commitment.  The Facility Fee

Rate shall vary from time to time based on the Borrower’s or General Partner’s

long term unsecured debt rating as set forth in the table attached hereto as

Exhibit A, and determined in a manner consistent with the provisions of

Section 2.4 relating to Applicable Margins, and the Facility Fee shall be

payable quarterly in arrears on the last day of each calendar quarter hereafter

beginning March 31, 2001 and on the Facility Termination Date.

 

2.6           Other Fees.  The Borrower will pay to Administrative

Agent for the benefit of the Lenders on or before the date hereof the fees

specified in that certain Fee Letter dated November 27, 2000.

 

2.7           Voluntary

Reduction of Aggregate Commitment Amount.  Upon at least fifteen (15) days prior irrevocable written notice

(or telephone notice promptly confirmed in writing) to the Administrative

Agent, Borrower shall have the right, without premium or penalty, to terminate

permanently the Aggregate Commitment in whole or in part provided that (a)

Borrower may not reduce the Aggregate Commitment below the Allocated Facility

Amount at the time of such requested reduction, and (b) any such partial

termination shall be in the minimum aggregate amount of Five Million Dollars

($5,000,000.00) or any integral multiple of Five Million Dollars

($5,000,000.00) in excess thereof.  Any

partial termination of the Aggregate Commitment shall be applied pro rata to

each Lender’s Commitment.

 

2.8           Minimum Amount of

Each Advance.  Each LIBOR

Advance shall be in the minimum amount of $2,000,000 (and in multiples of

$1,000,000 if in excess thereof), and each ABR Advance shall be in the minimum

amount of $1,000,000 (and in multiples of $500,000 if in excess thereof),

provided, however, that any ABR Advance may be in the amount of the unused

Aggregate Commitment.

 

2.9           Optional Principal

Payments.  The Borrower may from

time to time pay, without penalty or premium, all or any part of outstanding

ABR Advances upon two Business Days’ prior notice to the Administrative

Agent.  The Borrower may from time to

time pay a LIBOR Advance, provided a LIBOR Advance may not be paid prior to the

last day of the

 

18

 

applicable Interest Period

unless accompanied by any amount due pursuant to Section 4.4.  A Competitive Bid Loan may not be paid prior

to its maturity, provided, however, that if a Competitive Bid Loan becomes due

prior to its stated maturity due to acceleration of the Obligations, then

payment of such Competitive Bid Loan shall be accompanied by any amount due

pursuant to Section 4.4.

 

2.10         Method of

Selecting Types and Interest Periods for New Advances.  The Borrower shall select the Type of

Advance and, in the case of each LIBOR Advance, the Interest Period applicable

to each Advance from time to time.  The

Borrower shall give the Administrative Agent irrevocable notice (a “Borrowing

Notice”) (i) not later than 10:00 a.m. Chicago time, at least one (1)

Business Day before the Borrowing Date of each ABR Advance, (ii) not later

than 10:00 a.m. Chicago time, at least three (3) Business Days before the Borrowing

Date for each LIBOR Advance, and (iii) not later than 11:00 a.m.

Chicago time on the Borrowing Date for each Swing Line Loan, specifying:

 

(a)           the Borrowing Date,

which shall be a Business Day, of such Advance,

 

(b)           the aggregate amount

of such Advance,

 

(c)           the Type of Advance

selected (which must be a ABR Advance in the case of the Swing Line Loans), and

 

(d)           in the case of each

LIBOR Advance, the Interest Period applicable thereto.

 

Not later than noon (Chicago

time) on each Borrowing Date, each Lender shall make available its Loan or

Loans, in funds immediately available in Chicago to the Administrative Agent at

its address specified pursuant to Article XIV. The Lenders shall not be

obligated to match fund their LIBOR Advances. The Administrative Agent will

make the funds so received from the Lenders available to the Borrower at the

Administrative Agent’s aforesaid address.

 

No Interest Period may end

after the Facility Termination Date and, unless all of the Lenders otherwise

agree in writing, in no event may there be more than seven (7) different

Interest Periods for LIBOR Advances (other than Competitive Bid Loans)

outstanding at any one time.

 

2.11         Conversion and Continuation of

Outstanding Advances.  ABR

Advances shall continue as ABR Advances unless and until such ABR Advances are

converted into LIBOR Advances.  Each

LIBOR Advance shall continue as a LIBOR Advance until the end of the then

applicable Interest Period therefor, at which time such LIBOR Advance shall be

automatically converted into an ABR Advance unless the Borrower shall have

given the Administrative Agent a Conversion/Continuation Notice requesting

that, at the end of such Interest Period, such LIBOR Advance continue as a

LIBOR Advance for the same or another Interest Period.  Subject to the terms of Section 2.8,

the Borrower may elect from time to time to convert all or any part of an

Advance of any Type into any other Type of Advance; provided that any

conversion of any LIBOR Advance shall be made on, and only on, the last day of

the Interest Period applicable thereto. 

The Borrower shall give the Administrative Agent irrevocable notice (a

“Conversion/Continuation Notice”) of each conversion of an Advance or

continuation of a LIBOR Advance not later than 10:00 a.m. (Chicago time) at

least one Business Day, in the case of a conversion into an ABR Advance, or

three Business Days, in the case of a conversion into or continuation of a

LIBOR Advance, prior to the date of the requested conversion or continuation,

specifying:

 

(i)            the requested date

which shall be a Business Day, of such conversion or continuation;

 

(ii)           the aggregate

amount and Type of the Advance which is to be converted or continued; and

 

(iii)          the amount and

Type(s) of Advance(s) into which such Advance is to be converted or continued and,

in the case of a conversion into or continuation of a LIBOR Advance, the

duration of the Interest Period applicable thereto.

 

19

 

2.12         Changes

in Interest Rate, Etc.  Each ABR

Advance shall bear interest on the outstanding principal amount thereof, for

each day from and including the date such Advance is made or is converted from

a LIBOR Advance into a ABR Advance pursuant to Section 2.11 to but

excluding the date it becomes due or is converted into a LIBOR Advance pursuant

to Section 2.11 hereof, at a rate per annum equal to the ABR Rate for

such day.  Changes in the rate of

interest on that portion of any Advance maintained as a ABR Advance will take

effect simultaneously with each change in the Alternate Base Rate.  Each LIBOR Advance shall bear interest from

and including the first day of the Interest Period applicable thereto to (but

not including) the last day of such Interest Period at the interest rate determined

as applicable to such LIBOR Advance.

 

2.13         Rates

Applicable After Default. 

Notwithstanding anything to the contrary contained in Section 2.10

or 2.11, during the continuance of a Default or Unmatured Default the

Required Lenders may, at their option, by notice to the Borrower (which notice

may be revoked at the option of the Required Lenders notwithstanding any

provision of Section 9.2 requiring unanimous consent of the Lenders to

changes in interest rates), declare that no Advance may be made as, converted

into or continued beyond its current term as a LIBOR Advance. During the

continuance of a Default the Required Lenders may, at their option, by notice

to the Borrower (which notice may be revoked at the option of the Required

Lenders notwithstanding any provision of Section 9.2 requiring unanimous

consent of the Lenders to changes in interest rates), declare that (i) each

LIBOR Advance shall bear interest for the remainder of the applicable Interest

Period at the rate otherwise applicable to such Interest Period plus 2% per

annum and (ii) each ABR Advance shall bear interest at a rate per annum equal

to the ABR Rate otherwise applicable to the ABR Advance plus 2% per annum and

the Facility Letter of Credit Fee shall increase by 2% per annum; provided that

such rates and increase in the Facility Letter of Credit Fee shall become

applicable automatically without notice to the Borrower or an election or

action by the Administrative Agent or any Lender if a Default occurs under Section 8.7

or Section 8.8, or a Default occurs relating to the payment of

principal or interest unless waived by the Required Lenders.

 

2.14         Swing Line

Loans.  In addition to the other

options available to Borrower hereunder, up to $40,000,000 of the Swing Line

Lender’s Commitment, shall be available for Swing Line Loans subject to the

following terms and conditions. Swing Line Loans shall be made available for

same day borrowings provided that notice is given in accordance with Section 2.10

hereof. All Swing Line Loans shall bear interest at the ABR Rate.  In no event shall the Swing Line Lender be

required to fund a Swing Line Loan if it would increase the total aggregate

outstanding Loans by Swing Line Lender hereunder plus its Percentage of

Facility Letter of Credit Obligations to an amount in excess of its Commitment

or if it would cause the Allocated Facility Amount to exceed the Aggregate

Commitment.  Each Swing Line Loan shall

be paid in full by the Borrower on or before the fifth (5th) day after the

Borrowing Date for such Swing Line Loan. 

In addition, the Swing Line Lender (i) may at any time in its sole

discretion with respect to any outstanding Swing Line Loan, or (ii) shall on

the fifth (5th) day after the Borrowing Date of any Swing Line Loan, require

each Lender (including the Swing Line Lender) to make a Loan in the amount of

such Lender’s Percentage of such Swing Line Loan (including, without

limitation, any interest accrued and unpaid thereon), for the purpose of

repaying such Swing Line Loan. Not later than noon (Chicago time) on the date

of any notice received pursuant to this Section 2.14, each Lender shall make

available its required Loan, in funds immediately available in Chicago to the

Administrative Agent at its address specified pursuant to Article XIV.

Revolving Loans made pursuant to this Section 2.14 shall initially be ABR Loans

and thereafter may be continued as ABR Loans or converted into LIBOR Loans in

the manner provided in Section 2.11 and subject to the other conditions and

limitations set forth in this Article II. 

Unless a Lender shall have notified the Swing Line Lender, prior to its

making any Swing Line Loan, that any applicable condition precedent set forth

in Sections 5.1 or 5.2 had not then been satisfied, such Lender’s obligation to

make Loans pursuant to this Section 2.14 to repay Swing Line Loans shall be

unconditional, continuing, irrevocable and absolute and shall not be affected

by any circumstances, including, without limitation, (a) any set-off,

counterclaim, recoupment, defense or other right which such Lender may have

against the Administrative Agent, the Swing Line Lender or any other Person,

(b) the occurrence or continuance of a Default or Unmatured Default, (c) any

adverse change in the condition (financial or otherwise) of the Borrower, or

(d)  any other circumstances, happening

or event whatsoever.  In the event that

any Lender fails to make payment to the Administrative Agent of any amount due

under this Section 2.14, the Administrative Agent shall be entitled to

receive, retain and apply against such obligation the principal and interest

otherwise payable to such Lender hereunder until the Administrative

 

20

 

Agent receives such payment

from such Lender or such obligation is otherwise fully satisfied.  In addition to the foregoing, if for any

reason any Lender fails to make payment to the Administrative Agent of any

amount due under this Section 2.14, such Lender shall be deemed, at the option

of the Administrative Agent, to have unconditionally and irrevocably purchased

from the Swing Line Lender, without recourse or warranty, an undivided interest

and participation in the applicable Swing Line Loan in the amount of such

payment not made by such Lender, and such interest and participation may be

recovered from such Lender together with interest thereon at the Federal Funds

Effective Rate for each day during the period commencing on the date of demand

and ending on the date such amount is received. Swing Line Loans may be

outstanding for a maximum of ten (10) days during any calendar month.  On the Facility Termination Date, the

Borrower shall repay in full the outstanding principal balance of the Swing

Line Loans.

 

2.15         Competitive Bid Loans.

 

(a)           Competitive Bid Option.  In addition to ratable Advances pursuant to

Section 2.3, but subject to the terms and conditions of this Agreement

(including, without limitation the limitation set forth in Section 2.1 as

to the maximum amount of all Loans not exceeding the Aggregate Commitment), the

Borrower may, as set forth in this Section 2.15, request the Lenders,

prior to the Facility Termination Date, to make offers to make Competitive Bid

Loans to the Borrower.  Each Lender may,

but shall have no obligation to, make such offers and the Borrower may, but

shall have no obligation to, accept any such offers in the manner set forth in

this Section 2.15. Competitive Bid Loans shall be evidenced by the

Competitive Bid Notes.

 

(b)           Competitive Bid Quote Request.  When the Borrower wishes to request offers

to make Competitive Bid Loans under this Section 2.15, it shall transmit

to the Administrative Agent by telecopy a Competitive Bid Quote Request

substantially in the form of Exhibit C-1 hereto so as to be received no

later than (i) 10:00 a.m. (Chicago time) at least five Business Days prior

to the Borrowing Date proposed therein, in the case of a request for a

Competitive LIBOR Margin or (ii) 9:00 a.m. (Chicago time) at least one

Business Day prior to the Borrowing Date proposed therein, in the case of a

request for an Absolute Rate specifying:

 

(i)            the proposed Borrowing Date for the

proposed Competitive Bid Loan,

 

(ii)           the requested aggregate principal

amount of such Competitive Bid Loan which must be at least $10,000,000 and an

integral multiple of $1,000,000,

 

(iii)          whether the Competitive Bid Quotes

requested are to set forth a Competitive LIBOR Margin or an Absolute Rate, or

both, and

 

(iv)          the LIBOR Interest Period, if a

Competitive LIBOR Margin is requested, or the Absolute Interest Period, if an

Absolute Rate is requested.

 

The Borrower may request offers

to make Competitive Bid Loans for more than one (but not more than five)

Interest Periods in a single Competitive Bid Quote Request. No Competitive Bid

Quote Request shall be given within five Business Days (or such other number of

days as the Borrower and the Administrative Agent may agree) of any other

Competitive Bid Quote Request. A Competitive Bid Quote Request that does not

conform substantially to the form of Exhibit C-1 hereto shall be rejected, and

the Administrative Agent shall promptly notify the Borrower of such rejection

by telecopy.

 

(c)           Invitation for Competitive Bid

Quotes.  Promptly and in any event

before the close of business on the same Business Day of receipt of a

Competitive Bid Quote Request that is not rejected pursuant to

Section 2.15(b), the Administrative Agent shall send to each of the

Lenders by telecopy an Invitation for Competitive Bid Quotes substantially in

the form of Exhibit C-2 hereto, which shall constitute an invitation by the

Borrower to each Lender to submit Competitive Bid Quotes offering to make the

Competitive Bid Loans to which such Competitive Bid Quote Request relates in

accordance with this Section 2.15.

 

21

 

(d)           Submission and Contents of

Competitive Bid Quotes.

 

(i)            Each Lender may, in its sole

discretion, submit a Competitive Bid Quote containing an offer or offers to

make Competitive Bid Loans in response to any Invitation for Competitive Bid

Quotes. Each Competitive Bid Quote must comply with the requirements of this

Section 2.15(d) and must be submitted to the Administrative Agent by telex

or telecopy at its offices not later than (a) 9:00 a.m. (Chicago time) at

least three Business Days prior to the proposed Borrowing Date, in the case of

a request for a Competitive LIBOR Margin or (b) 9:00 a.m. (Chicago time)

on the proposed Borrowing Date, in the case of a request for an Absolute Rate

(or, in either case upon reasonable prior notice to the Lenders, such other

time and rate as the Borrower and the Administrative Agent may agree); provided

that Competitive Bid Quotes submitted by the Administrative Agent may only be

submitted if the Administrative Agent notifies the Borrower of the terms of the

Offer or Offers contained therein no later than 60 minutes prior to the latest

time at which the relevant Competitive Bid Quotes must be submitted by the

other Lenders.  Subject to the

Borrower’s compliance with all other conditions to disbursement herein, any

Competitive Bid Quote so made shall be irrevocable except with the written

consent of the Administrative Agent given on the instructions of the Borrower.

 

(ii)           Each Competitive Bid Quote shall be

in substantially the form of Exhibit C-3 hereto and shall in any case specify:

 

(1)           the proposed Borrowing Date, which

shall be the same as that set forth in the applicable Invitation for

Competitive Bid Quotes,

 

(2)           the principal amount of the

Competitive Bid Loan for which each such offer is being made, which principal

amount (x) may be greater than, less than or equal to the Commitment of

the quoting Lender, (y) must be at least $5,000,000 and an integral

multiple of $1,000,000, and (z) may not exceed the principal amount of

Competitive Bid Loans for which offers are requested,

 

(3)           as applicable, the Competitive LIBOR

Margin and Absolute Rate offered for each such Competitive Bid Loan,

 

(4)           the minimum amount, if any, of the

Competitive Bid Loan which may be accepted by the Borrower, and

 

(5)           the identity of the quoting Lender,

provided that such Competitive Bid Loan may be funded by such Lender’s

Designated Lender as provided in Section 2.15(j), regardless of whether

that is specified in the Competitive Bid Quote.

 

(iii)          The Administrative Agent shall reject

any Competitive Bid Quote that:

 

(1)           is not substantially in the form of

Exhibit C-3 hereto or does not specify all of the information required by

Section 2.15(d)(ii),

 

(2)           contains qualifying, conditional or

similar language, other than any such language contained in Exhibit C-3

hereto,

 

(3)           proposes terms other than or in

addition to those set forth in the applicable Invitation for Competitive Bid

Quotes, or

 

(4)           arrives after the time set forth in

Section 2.15(d)(i).

 

If any

Competitive Bid Quote shall be rejected pursuant to this

Section 2.15(d)(iii), then the Administrative Agent shall notify the

relevant Lender of such rejection as soon as practical.

 

22

 

(e)           Notice to Borrower.  The Administrative Agent shall promptly

notify the Borrower of the terms (i) of any Competitive Bid Quote

submitted by a Lender that is in accordance with Section 2.15(d) and

(ii) of any Competitive Bid Quote that amends, modifies or is otherwise

inconsistent with a previous Competitive Bid Quote submitted by such Lender

with respect to the same Competitive Bid Quote Request. Any such subsequent

Competitive Bid Quote shall be disregarded by the Administrative Agent unless

such subsequent Competitive Bid Quote specifically states that it is submitted

solely to correct a manifest error in such former Competitive Bid Quote. The

Administrative Agent’s notice to the Borrower shall specify the aggregate

principal amount of Competitive Bid Loans for which offers have been received

for each Interest Period specified in the related Competitive Bid Quote Request

and the respective principal amounts and Competitive LIBOR Margins or Absolute

Rate, as the case may be, so offered.

 

(f)            Acceptance and Notice by Borrower.  Not later than (i) 10:00 a.m. (Chicago

time) at least three Business Days prior to the proposed Borrowing Date in the

case of a request for a Competitive LIBOR Margin or (ii) 10:00 a.m.

(Chicago time) on the proposed Borrowing Date, in the case of a request for an

Absolute Rate (or, in either case upon reasonable prior notice to the Lenders,

such other time and date as the Borrower and the Administrative Agent may

agree), the Borrower shall notify the Administrative Agent of its acceptance or

rejection of the offers so notified to it pursuant to Section 2.15(e);

provided, however, that the failure by the Borrower to give such notice to the

Administrative Agent shall be deemed to be a rejection of all such offers. In

the case of acceptance, such notice (a “Competitive Bid Borrowing Notice”)

shall specify the aggregate principal amount of offers for each Interest Period

that are accepted. The Borrower may accept any Competitive Bid Quote in whole

or in part (subject to the terms of Section 2.15(d)(iii)); provided that:

 

(i)            the aggregate

principal amount of all Competitive Bid Loans to be disbursed on a given

Borrowing Date may not exceed the applicable amount set forth in the related

Competitive Bid Quote Request,

 

(ii)           acceptance of

offers may only be made on the basis of ascending Competitive LIBOR Margins or

Absolute Rates, as the case may be, and

 

(iii)          the Borrower may

not accept any offer that is described in Section 2.15(d)(iii) or that

otherwise fails to comply with the requirements of this Agreement.

 

(g)           Allocation by Administrative Agent.  If offers are made by two or more Lenders

with the same Competitive LIBOR Margins or Absolute Rates, as the case may be,

for a greater aggregate principal amount than the amount in respect of which

offers are accepted for the related Interest Period, the principal amount of

Competitive Bid Loans in respect of which such offers are accepted shall be

allocated by the Administrative Agent among such Lenders as nearly as possible

(in such multiples, not greater than $1,000,000, as the Administrative Agent

may deem appropriate) in proportion to the aggregate principal amount of such

offers provided, however, that no Lender shall be allocated any Competitive Bid

Loan which is less than the minimum amount which such Lender has indicated that

it is willing to accept.  Allocations by

the Administrative Agent of the amounts of Competitive Bid Loans shall be

conclusive in the absence of manifest error. 

The Administrative Agent shall promptly, but in any event on the same

Business Day, notify each Lender of its receipt of a Competitive Bid Borrowing

Notice and the principal amounts of the Competitive Bid Loans allocated to each

participating Lender.

 

(h)           Administration Fee.  The Borrower hereby agrees to pay to the

Administrative Agent an administration fee of $2,500 per each Competitive Bid

Quote Request transmitted by the Borrower to the Administrative Agent pursuant

to Section 2.15(b).  Such

administration fee shall be payable monthly in arrears on the first Business

Day of each month and on the Maturity Date (or such earlier date on which the

Aggregate Commitment shall terminate or be cancelled) for any period then

ending for which such fee, if any, shall not have been theretofore paid.

 

(i)            Other Terms.  Any Competitive Bid Loan shall not reduce

the Commitment of the Lender making such Competitive Bid Loan, and each such

Lender shall continue to be obligated to fund its full Percentage of all pro

rata Advances under the Facility.  In no

event can the aggregate amount of all Competitive Bid Loans at any time exceed

fifty

 

23

 

percent (50%) of the then

Aggregate Commitment. Competitive Bid Loans shall not be prepaid prior to the

end of the applicable Interest Period. 

Competitive Bid Loans may not be continued and, if not repaid at the end

of the Interest Period applicable thereto, shall (subject to the conditions set

forth in this Agreement) be replaced by new Competitive Bid Loans made in

accordance with this Section 2.15 or by ratable Advances in accordance

with Section 2.11.

 

(j)            Designated Lenders.  A Lender may designate its Designated Lender

to fund a Competitive Bid Loan on its behalf as described in Section

2.15(d)(ii)(5).  Any Designated Lender

which funds a Competitive Bid Loan shall on and after the time of such funding

become the obligee under such Competitive Bid Loan and be entitled to receive

payment thereof when due. No Lender shall be relieved of its obligation to fund

a Competitive Bid Loan, and no Designated Lender shall assume such obligation,

prior to the time such Competitive Bid Loan is funded.

 

2.16         Method of

Payment.  All payments of the

Obligations hereunder shall be made, without setoff, deduction, or

counterclaim, in immediately available funds to the Administrative Agent at the

Administrative Agent’s address specified pursuant to Article XIV, or at any

other Lending Installation of the Administrative Agent specified in writing by

the Administrative Agent to the Borrower, by noon (local time) on the date when

due and shall be applied by the Administrative Agent among the Lenders in accordance

with the class or type of Obligation being paid.  Each payment delivered to the Administrative Agent for the

account of any Lender shall be delivered by the Administrative Agent to such

Lender in the same type of funds that the Administrative Agent received at its

address specified pursuant to Article XIV or at any Lending Installation

specified in a notice received by the Administrative Agent from such Lender

promptly, which is expected to be by the close of business on the same Business

Day received by Administrative Agent if received by noon (local time) but shall

in any event not be later than the next Business Day, provided that the

Administrative Agent shall pay to such Lenders interest thereon, at the lesser

of (i) the Federal Funds Effective Rate and (ii) the rate of interest

applicable to such Loans, from the Business Day such funds are received by the

Administrative Agent in immediately available funds (provided, if such funds

are not received by the Administrative Agent by noon (local time), such period

shall commence on the Business Day immediately following the day such funds are

received) until such funds are paid to such Lenders.  The Administrative Agent is hereby authorized to charge the

account of the Borrower maintained with Bank One for each payment of any of the

Obligations as it becomes due hereunder.

 

2.17         Notes;

Telephonic Notices.  Each Lender

is hereby authorized to record the principal amount of each of its Loans and

each repayment on the schedule attached to its Note, provided, however, that

the failure to so record shall not affect the Borrower’s obligations under such

Note. Each Lender’s books and records, including without limitation, the

information, if any, recorded by the Lender on the Schedule attached to its

Note, shall be deemed to be prima facia correct.  The Borrower hereby authorizes the Lenders and the Administrative

Agent to extend, convert or continue Advances, effect selections of Types of

Advances and to transfer funds based on telephonic notices made by any person

or persons the Administrative Agent or any Lender in good faith believes to be

acting on behalf of the Borrower. The Borrower agrees to deliver promptly to

the Administrative Agent a written confirmation signed by an Authorized Officer

of each telephonic notice, if such confirmation is requested by the

Administrative Agent or any Lender. If the written confirmation differs in any

material respect from the action taken by the Administrative Agent and the

Lenders, the records of the Administrative Agent and the Lenders shall govern

absent manifest error.

 

2.18         Interest Payment Dates; Interest and

Fee Basis. Interest accrued on each Advance shall be payable on each

Payment Date, commencing with the first such date to occur after the date

hereof, and at maturity, whether by acceleration or otherwise.  Interest accrued on each LIBOR Advance shall

also be payable on any date on which the LIBOR Advance is prepaid (provided

that nothing herein shall authorize a prepayment which is not otherwise

permitted hereunder).  Interest,

Facility Fees and Facility Letter of Credit Fees shall be calculated for actual

days elapsed on the basis of a 360–day year.  Interest shall be payable for the day an Advance is made but not

for the day of any payment on the amount paid if payment is received prior to

noon (local time) at the place of payment. If any payment of principal of or

interest on an Advance shall become due on a day which is not a Business Day,

such payment shall be made on the next succeeding Business Day and, in the case

of a principal payment, such extension of time shall be included in computing

interest in connection with such payment.

 

24

 

2.19.        Notification

of Advances, Interest Rates and Prepayments.  Promptly after receipt thereof (but in no event later than one

Business Day prior to the proposed Borrowing Date for a ABR Advance or three

Business Days prior to the proposed Borrowing Date for a LIBOR Advance) the

Administrative Agent will notify each Lender of the contents of each Borrowing

Notice, Conversion/Continuation Notice, and repayment notice received by it

hereunder. The Administrative Agent will notify each Lender of the interest

rate applicable to each LIBOR Advance promptly upon determination of such interest

rate and will give each Lender prompt notice of each change in the Alternate

Base Rate.

 

2.20.        Lending

Installations.  Each Lender may

book its Loans and its participation in Facility Letters of Credit at any

Lending Installation selected by such Lender and may change its Lending

Installation from time to time. All terms of this Agreement shall apply to any

such Lending Installation and the Notes shall be deemed held by each Lender for

the benefit of such Lending Installation. 

Each Lender may, by written or telex notice to the Administrative Agent

and the Borrower, designate a Lending Installation through which Loans will be

made by it or Facility Letters of Credit will be issued by it and for whose

account Loan payments or payments with respect to Facility Letters of Credit

are to be made.

 

2.21.        Non–Receipt of Funds by the Administrative

Agent.  Unless the Borrower or a Lender, as the case

may be, notifies the Administrative Agent prior to the date on which it is

scheduled to make payment to the Administrative Agent of (i) in the case of a

Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a payment

of principal, interest or fees to the Administrative Agent for the account of

the Lenders, that it does not intend to make such payment, the Administrative

Agent may assume that such payment has been made.  The Administrative Agent may, but shall not be obligated to, make

the amount of such payment available to the intended recipient in reliance upon

such assumption. If such Lender or the Borrower, as the case may be, has not in

fact made such payment to the Administrative Agent, the recipient of such

payment shall, on demand by the Administrative Agent, repay to the

Administrative Agent the amount so made available together with interest

thereon in respect of each day during the period commencing on the date such

amount was so made available by the Administrative Agent until the date the

Administrative Agent recovers such amount at a rate per annum equal to (i) in

the case of payment by a Lender, the Federal Funds Effective Rate for such day

or (ii) in the case of payment by the Borrower, the interest rate applicable to

the relevant Loan.

 

2.22.        Usury. This

Agreement and each Note are subject to the express condition that at no time

shall the Borrower be obligated or required to pay interest on the principal

balance of the Loan at a rate which could subject any Lender (including the

Swing Line Lender or any Designated Lender) to either civil or criminal

liability as a result of being in excess of the Maximum Legal Rate. If by the

terms of this Agreement or the Loan Documents, the Borrower is at any time

required or obligated to pay interest on the principal balance due hereunder at

a rate in excess of the Maximum Legal Rate, the interest rate or the Default

Rate, as the case may be, shall be deemed to be immediately reduced to the

Maximum Legal Rate and all previous payments in excess of the Maximum Legal

Rate shall be deemed to have been payments in reduction of principal and not on

account of the interest due hereunder. All sums paid or agreed to be paid to a

Lender for the use, forbearance, or detention of the sums due under the Loan,

shall, to the extent permitted by applicable law, be amortized, prorated,

allocated, and spread throughout the full stated term of the Loan until payment

in full so that the rate or amount of interest on account of the Loan does not

exceed the Maximum Legal Rate of interest from time to time in effect and

applicable to the Loan for so long as the Loan is outstanding.

 

2.23.        Applications

of Moneys Received.  All moneys

collected or received by the Administrative Agent on account of the Facility

directly or indirectly, shall be applied in the following order of priority:

 

(i)            to the payment of all reasonable costs incurred in the

collection of such moneys of which the Administrative Agent shall have given

notice to the Borrower;

 

(ii)           to the reimbursement of any yield protection due to the

Lenders in accordance with Section 4.1;

 

(iii)          to the payment of any fee due pursuant to

Section 3.8(b) in connection with the issuance of a Facility Letter of

Credit to the Issuing Bank, to the payment of the Facility Fee to the Lenders,

if then due, in accordance with their Percentages and to the payment of the

Administrative Agent's Fee to the Administrative Agent if then due;

 

25

 

(iv)          (a) in case the entire unpaid principal of the Loan

shall not have become due and payable, the whole amount received as interest

and Facility Letter of Credit Fee then due to the Lenders (other than a

Defaulting Lender) as their respective Percentages appear (except to the extent

there are Swing Line Loans or Competitive Bid Loans outstanding in which event

the full amount of interest attributable to the Swing Line Loans and

Competitive Bid Loans shall be payable to the Swing Line Lender and Competitive

Bid Lenders, respectively, unless the Swing Line Lender or Competitive Bid

Lender shall be a Defaulting Lender), together with the whole amount, if any,

received as principal first to the Swing Line Lender, unless the Swing Line

Lender shall be a Defaulting Lender, to repay any outstanding Swing Line Loans

and then to the Lenders as their respective Funded Percentages appear, or

(b) in case the entire unpaid principal of the Loan shall have become due

and payable, as a result of a Default or otherwise, to the payment of the whole

amount then due and payable on the Loan for principal, together with interest

thereon at the Default Rate or the interest rate, as applicable, to the Swing

Line Lender, unless the Swing Line Lender shall be a Defaulting Lender, for all

such amounts due in connection with Swing Line Loans and then to the Lenders

(other than a Defaulting Lender) as their respective Funded Percentages appear

until paid in full and then to the Letter of Credit Collateral Account until

the full amount of Facility Letter of Credit Obligations is on deposit therein;

and

 

(v)           to the payment of any sums due to each Defaulting Lender

as their respective Percentages appear (provided that Administrative Agent

shall have the right to set-off against such sums any amounts due from such

Defaulting Lender).

 

ARTICLE III

 

THE

LETTER OF CREDIT SUBFACILITY

 

3.1.          Obligations

to Issue.  Subject to the terms

and conditions of this Agreement and in reliance upon the representations and

warranties of the Borrower and the General Partner herein set forth, the

Issuing Bank hereby agrees to issue for the account of Borrower, one or more

Facility Letters of Credit in accordance with this Article III, and to renew,

extend, increase, decrease, or otherwise modify each Facility Letter of Credit

(“Modify”, and each such action a “Modification”) from time to time during the

period commencing on the date hereof and ending on the Business Day prior to

the Facility Termination Date.  Any

Lender shall have the right to decline to be the Issuing Bank for a Facility

Letter of Credit provided that if no other Lender agrees to be the Issuing Bank

then Administrative Agent shall agree to do so.

 

3.2.          Types and

Amounts. The Issuing Bank shall not have any obligation to:

 

(i)            issue or Modify any

Facility Letter of Credit if the aggregate maximum amount then available for

drawing under Letters of Credit issued by such Issuing Bank, after giving effect

to the Facility Letter of Credit or Modification requested hereunder shall

exceed any limit imposed by law or regulation upon such Issuing Bank;

 

(ii)           issue or Modify any

Facility Letter of Credit if, after giving effect thereto, the Facility Letter

of Credit Obligations would exceed $40,000,000 or the Allocated Facility Amount

would exceed the Aggregate Commitment;

 

(iii)          issue any Facility

Letter of Credit having an expiration date, or containing automatic extension

provisions to extend such date, to a date which is after the Facility

Termination Date; or

 

(iv)          issue any Facility

Letter of Credit having an expiration date, or containing automatic extension

provisions to extend such date, to a date which is more than fifteen (15)

months after the date of its issuance.

 

3.3.          Conditions. In addition to

being subject to the satisfaction of the conditions contained in Section 5.2

hereof, the obligation of the Issuing Bank to issue any Facility Letter of

Credit is subject to the satisfaction in full of the following conditions:

 

26

 

(i)            the Borrower shall

have delivered to the Issuing Bank at such times and in such manner as the

Issuing Bank may reasonably prescribe such documents and materials as may be

reasonably required pursuant to the terms of the proposed Facility Letter of

Credit (it being understood that if any inconsistency exists between such

documents and the Loan Documents, the terms of the Loan Documents shall

control) and the proposed Facility Letter of Credit shall be reasonably

satisfactory to the Issuing Bank as to form and content;

 

(ii)           as of the date of issuance, no order, judgment or decree

of any court, arbitrator or governmental authority shall purport by its terms

to enjoin or restrain the Issuing Bank from issuing the requested Facility

Letter of Credit and no law, rule or regulation applicable to the Issuing Bank

and no request or directive (whether or not having the force of law) from any

governmental authority with jurisdiction over the Issuing Bank shall prohibit

or request that the Issuing Bank refrain from the issuance of Letters of Credit

generally or the issuance of the requested Facility Letter or Credit in

particular; and

 

(iii)          there shall not exist any Default or Unmatured Default.

 

3.4.          Procedure for Issuance of Facility

Letters of Credit.

 

(a)           Borrower shall give the Issuing Bank

and the Administrative Agent at least five (5) Business Days’ prior written

notice of any requested issuance of a Facility Letter of Credit under this

Agreement (a “Letter of Credit Request”) (except that, in lieu of such

written notice, the Borrower may give the Issuing Bank and the Administrative

Agent telephonic notice of such request if confirmed in writing by delivery to

the Issuing Bank and the Administrative Agent (i) immediately (A) of a telecopy

of the written notice required hereunder which has been signed by an authorized

officer, or (B) of a telex containing all information required to be contained

in such written notice and (ii) promptly (but in no event later than the

requested date of issuance) of the written notice required hereunder containing

the original signature of an authorized officer); such notice shall specify:

 

(1)           the stated amount of

the Facility Letter of Credit requested (which stated amount shall not be less

than $50,000);

 

(2)           the effective date

(which day shall be a Business Day) of issuance of such requested Facility

Letter of Credit (the “Issuance Date”);

 

(3)           the date on which

such requested Facility Letter of Credit is to expire (which date shall be a

Business Day and shall in no event be later than the earlier of fifteen months

after the Issuance Date and the Facility Termination Date):

 

(4)           the purpose for which such Facility

Letter of Credit is to be issued; and

 

(5)           the Person for whose benefit the

requested Facility Letter of Credit is to be issued.

 

At the time such request is

made, the Borrower shall also provide the Administrative Agent and the Issuing

Bank with a copy of the form of the Facility Letter of Credit that the Borrower

is requesting be issued, which shall be subject to the approval of the Issuing

Bank and Administrative Agent.  Such

notice, to be effective, must be received by such Issuing Bank and the Administrative

Agent not later than 2:00 p.m. (Chicago time) on the last Business Day on which

notice can be given under this Section 3.4(a). 

Administrative Agent shall promptly give a copy of the Letter of Credit

Request to the other Lenders.

 

(b)           Subject to the terms and conditions

of this Article III and provided that the applicable conditions set forth in Section 4.2

hereof have been satisfied, such Issuing Bank shall, on the Issuance Date,

issue a Facility Letter of Credit on behalf of the Borrower in accordance with

the Letter of Credit Request and the Issuing Bank’s usual and customary

business practices (including the execution of a letter of credit application

on the Issuing Bank’s standard

 

27

 

forms) unless the Issuing Bank

has actually received (i) written notice from the Borrower specifically

revoking the Letter of Credit Request with respect to such Facility Letter of

Credit, (ii) written notice from a Lender, which complies with the provisions

of Section 3.11(a), or (iii) written or telephonic notice from the

Administrative Agent stating that the issuance of such Facility Letter of

Credit would violate Section 3.2.

 

(c)           The Issuing Bank shall give the

Administrative Agent and the Borrower written or telex notice, or telephonic

notice confirmed promptly thereafter in writing, of the issuance of a Facility

Letter of Credit (the “Issuance Notice”) and Administrative Agent shall

promptly give a copy of the Issuance Notice to the other Lenders.

 

(d)           The Issuing Bank shall not extend or

modify any Facility Letter of Credit unless the requirements of this Section

3.4 are met as though a new Facility Letter of Credit was being requested

and issued.

 

3.5.          Administration; Reimbursement by

Lenders.  Upon receipt from the

beneficiary of any Facility Letter of Credit of any demand for payment under

such Facility Letter of Credit, the Issuing Bank shall notify the

Administrative Agent and the Administrative Agent shall promptly notify the

Borrower and each other Lender as to the amount to be paid by the Issuing Bank

as a result of such demand and the proposed payment date (the “LC Payment

Date”). The responsibility of the Issuing Bank to the Borrower and each Lender

shall be only to determine that the documents (including each demand for

payment) delivered under each Facility Letter of Credit in connection with such

presentment shall be in conformity in all material respects with such Facility

Letter of Credit.  The Issuing Bank

shall endeavor to exercise the same care in the issuance and administration of

the Facility Letter of Credits as it does with respect to letters of credit in

which no participations are granted, it being understood that in the absence of

any gross negligence or willful misconduct by the Issuing Bank, each Lender

shall be unconditionally and irrevocably liable without regard to the

occurrence of any Default or any condition precedent whatsoever, to reimburse

the Issuing Bank on demand for (i) such Lender’s Percentage of the amount of

each payment made by the Issuing Bank under each Facility Letter of Credit to

the extent such amount is not reimbursed by the Borrower pursuant to Section

3.6 below, plus (ii) interest on the foregoing amount to be reimbursed by such

Lender, for each day from the date of the Issuing Bank’s demand for such reimbursement

(or, if such demand is made after 11:00 a.m. (Chicago time) on such date, from

the next succeeding Business Day) to the date on which such Lender pays the

amount to be reimbursed by it, at a rate of interest per annum equal to the

Federal Funds Effective Rate for the first three days and, thereafter, at a

rate of interest equal to the rate applicable to ABR Advances.

 

3.6           Reimbursement

by Borrower.  The Borrower shall

be irrevocably and unconditionally obligated to reimburse the Issuing Bank on

or before the applicable LC Payment Date for any amounts to be paid by the

Issuing Bank upon any drawing under any Facility Letter of Credit, without

presentment, demand, protest or other formalities of any kind; provided

that neither the Borrower nor any Lender shall hereby be precluded from

asserting any claim for direct (but not consequential) damages suffered by the

Borrower or such Lender to the extent, but only to the extent, caused by (i)

the willful misconduct or gross negligence of the Issuing Bank in determining

whether a request presented under any Facility Letter of Credit issued by it

complied with the terms of such Facility Letter of Credit or (ii) the Issuing

Bank’s failure to pay under any Facility Letter of Credit issued by it after

the presentation to it of a request strictly complying with the terms and

conditions of such Facility Letter of Credit. 

All such amounts paid by the Issuing Bank and remaining unpaid by the

Borrower shall bear interest, payable on demand, for each day until paid at a rate

per annum equal to (x) the rate applicable to ABR Advances for such day if such

day falls on or before the applicable LC Payment Date and (y) the sum of 2%

plus the rate applicable to ABR Advances for such day if such day falls after

such LC Payment Date.  The Issuing Bank

will pay to each Lender ratably in accordance with its Percentage all amounts

received by it from the Borrower for application in payment, in whole or in

part, of the Reimbursement Obligation in respect of any Facility Letter of Credit

issued by the Issuing Bank, but only to the extent such Lender has made payment

to the Issuing Bank in respect of such Facility Letter of Credit pursuant to

Section 3.5.  Subject to the terms and

conditions of this Agreement (including without limitation the submission of a

Borrowing Notice in compliance with Section 2.10 and the

satisfaction of the applicable conditions precedent set forth in Article V),

the Borrower may request an Advance hereunder for the purpose of satisfying any

Reimbursement Obligation.

 

28

 

3.7           Obligations

Absolute.  The Borrower’s

obligations under Section 3.6 shall be absolute and unconditional under any and

all circumstances and irrespective of any setoff, counterclaim or defense to

payment which the Borrower may have or have had against the Issuing Bank, any

Lender or any beneficiary of a Facility Letter of Credit.  The Borrower further agrees with the Issuing

Bank and the Lenders that the Issuing Bank and the Lenders shall not be

responsible for, and the Borrower’s Reimbursement Obligation in respect of any

Facility Letter of Credit shall not be affected by, among other things, the

validity or genuineness of documents or of any endorsements thereon, even if

such documents should in fact prove to be in any or all respects invalid,

fraudulent or forged, or any dispute between or among the Borrower, any of its

Affiliates, the beneficiary of any Facility Letter of Credit or any financing

institution or other party to whom any Facility Letter of Credit may be

transferred or any claims or defenses whatsoever of the Borrower or of any of

its Affiliates against the beneficiary of any Facility Letter of Credit or any

such transferee.  The Issuing Bank shall

not be liable for any error, omission, interruption or delay in transmission,

dispatch or delivery of any message or advice, however transmitted, in

connection with any Facility Letter of Credit. 

The Borrower agrees that any action taken or omitted by the Issuing Bank

or any Lender under or in connection with each Facility Letter of Credit and

the related drafts and documents, if done without gross negligence or willful

misconduct, shall be binding upon the Borrower and shall not put the Issuing

Bank or any Lender under any liability to the Borrower.  Nothing in this Section 3.7 is intended to

limit the right of the Borrower to make a claim against the Issuing Bank for

damages as contemplated by the proviso to the first sentence of Section 3.6.

 

3.8           Actions

of Issuing Bank.  The Issuing

Bank shall be entitled to rely, and shall be fully protected in relying, upon

any Facility Letter of Credit, draft, writing, resolution, notice, consent,

certificate, affidavit, letter, cablegram, telegram, telecopy, telex or

teletype message, statement, order or other document believed by it to be

genuine and correct and to have been signed, sent or made by the proper Person

or Persons, and upon advice and statements of legal counsel, independent

accountants and other experts selected by the Issuing Bank.  The Issuing Bank shall be fully justified in

failing or refusing to take any action under this Agreement unless it shall

first have received such advice or concurrence of the Required Lenders as it

reasonably deems appropriate or it shall first be indemnified to its reasonable

satisfaction by the Lenders against any and all liability and expense which may

be incurred by it by reason of taking or continuing to take any such action.

Notwithstanding any other provision of this Article 3.8, the Issuing Bank shall

in all cases be fully protected in acting, or in refraining from acting, under

this Agreement in accordance with a request of the Required Lenders, and such

request and any action taken or failure to act pursuant thereto shall be

binding upon the Lenders and any future holders of a participation in any

Facility Letter of Credit.

 

3.9           Indemnification.  The Borrower hereby agrees to indemnify and

hold harmless each Lender, the Issuing Bank and the Administrative Agent, and

their respective directors, officers, agents and employees from and against any

and all claims and damages, losses, liabilities, costs or expenses which such

Lender, the Issuing Bank or the Administrative Agent may incur (or which may be

claimed against such Lender, the Issuing Bank or the Administrative Agent by

any Person whatsoever) by reason of or in connection with the issuance,

execution and delivery or transfer of or payment or failure to pay under any

Facility Letter of Credit or any actual or proposed use of any Facility Letter

of Credit, including, without limitation, any claims, damages, losses,

liabilities, costs or expenses which the Issuing Bank may incur by reason of or

in connection with (i) the failure of any other Lender to fulfill or

comply with its obligations to the Issuing Bank hereunder (but nothing herein

contained shall affect any rights the Borrower may have against any defaulting

Lender) or (ii) by reason of or on account of the Issuing Bank issuing any

Facility Letter of Credit which specifies that the term “Beneficiary” included

therein includes any successor by operation of law of the named Beneficiary,

but which Facility Letter of Credit does not require that any drawing by any

such successor Beneficiary be accompanied by a copy of a legal document,

satisfactory to the Issuing Bank, evidencing the appointment of such successor

Beneficiary; provided that the Borrower shall not be required to

indemnify any Lender, the Issuing Bank or the Administrative Agent for any

claims, damages, losses, liabilities, costs or expenses to the extent, but only

to the extent, caused by (x) the willful misconduct or gross negligence of the

Issuing Bank in determining whether a request presented under any Facility

Letter of Credit complied with the terms of such Facility Letter of Credit or

(y) the Issuing Bank’s failure to pay under any Facility Letter of Credit after

the presentation to it of a request strictly complying with the terms and

conditions of such Facility Letter of Credit. Nothing in this Section 3.9 is

intended to limit the obligations of the Borrower under any other provision of

this Agreement.

 

29

 

3.10         Lenders’

Indemnification.  Each Lender

shall, ratably in accordance with its Percentage, indemnify the Issuing Bank,

its affiliates and their respective directors, officers, agents and employees

(to the extent not reimbursed by the Borrower) against any cost, expense

(including reasonable counsel fees and disbursements), claim, demand, action,

loss or liability (except such as result from such indemnitees’ gross

negligence or willful misconduct or the Issuing Bank’s failure to pay under any

Facility Letter of Credit after the presentation to it of a request strictly

complying with the terms and conditions of the Facility Letter of Credit) that

such indemnitees may suffer or incur in connection with this Article III or any

action taken or omitted by such indemnitees hereunder.

 

3.11         Participation.

 

(a)           Immediately upon issuance by the

Issuing Bank of any Facility Letter of Credit or Modification in accordance

with the procedures set forth in Section 3.4, each Lender shall be

deemed to have irrevocably and unconditionally purchased and received from the

Issuing Bank, without recourse, representation or warranty, an undivided interest

and participation equal to such Lender’s Percentage in such Facility Letter of

Credit (including, without limitation, all obligations of the Borrower with

respect thereto) and any security therefor or guaranty pertaining thereto; provided

that a Letter of Credit issued by the Issuing Bank shall not be deemed to be a

Facility Letter of Credit for purposes of this Section 3.11 if the

Issuing Bank shall have received written notice from any Lender on or before

the Business Day prior to the date of its issuance of such Letter of Credit

that one or more of the conditions contained in Section 5.2 is not then

satisfied, and in the event the Issuing Bank receives such a notice it shall

have no further obligation to issue any Facility Letter of Credit until such notice

is withdrawn by that Lender or the Issuing Bank receives a notice from the

Administrative Agent that such condition has been effectively waived in

accordance with the provisions of this Agreement.  Each Lender’s obligation to make further Loans to the Borrower

(other than any payments such Lender is required to make under subparagraph (b)

below) or issue any letters of credit on behalf of Borrower shall be reduced by

such Lender’s pro rata share of each Facility Letter of Credit outstanding.

 

(b)           Whenever the Issuing Bank receives a

payment on account of a Reimbursement Obligation, including any interest

thereon, the Issuing Bank shall promptly pay to the Administrative Agent and

the Administrative Agent shall promptly pay to each Lender which has funded its

participating interest therein, in immediately available funds, an amount equal

to such Lender’s Percentage thereof.

 

(c)           Upon the request of the

Administrative Agent or any Lender, an Issuing Bank shall furnish to such

Administrative Agent or Lender copies of any Facility Letter of Credit to which

that Issuing Bank is party and such other documentation as may reasonably be

requested by the Administrative Agent or Lender.

 

(d)           The obligations of a Lender to make

payments to the Administrative Agent for the account of each Issuing Bank with

respect to a Facility Letter of Credit shall be absolute, unconditional and

irrevocable, not subject to any counterclaim, set–off, qualification or

exception whatsoever other than a failure of any such Issuing Bank to comply

with the terms of this Agreement relating to the issuance of such Facility

Letter of Credit and shall be made in accordance with the terms and conditions

of this Agreement under all circumstances.

 

3.12         Compensation for Facility Letters

of Credit.

 

(a)           The Borrower shall pay to the

Administrative Agent, for the ratable account of the Lenders, based upon the

Lenders’ respective Percentages, a per annum fee (the “Facility Letter of

Credit Fee”) with respect to each Facility Letter of Credit that is equal to

the LIBOR Applicable Margin in effect from time to time.  The Facility Letter of Credit Fee relating

to any Facility Letter of Credit shall be due and payable in arrears in equal

installments on each Payment Date and, to the extent any such fees are then due

and unpaid, on the Facility Termination Date. 

The Administrative Agent shall promptly remit such Facility Letter of

Credit Fees, when paid, to the other Lenders in accordance with their

Percentages thereof.

 

(b)           The Issuing Bank also shall have the

right to receive solely for its own account an issuance fee of 0.15% of the

face amount of each Facility Letter of Credit, payable by the Borrower on the

Issuance Date for each such Facility Letter of Credit. The Issuing Bank shall

also be entitled to receive its reasonable out-of-pocket costs and the Issuing

Bank’s standard charges of issuing, amending and servicing Facility Letters of

Credit and processing draws thereunder.

 

30

 

(c)           Letter of Credit Collateral

Account.  The Borrower hereby agrees

that it will, until the Facility Termination Date, maintain a special

collateral account (the “Letter of Credit Collateral Account”) at the

Administrative Agent's office at the address specified pursuant to Article XIV,

in the name of the Borrower but under the sole dominion and control of the

Administrative Agent, for the benefit of the Lenders, and in which the Borrower

shall have no interest other than as set forth in Section 9.1.  Such Letter of Credit Collateral Account

shall be funded to the extent required by Section 9.1.  In addition to the foregoing, the Borrower

hereby grants to the Administrative Agent, for the benefit of the Lenders, a

properly perfected security interest in and to the Letter of Credit Collateral

Account, any funds that may hereafter be on deposit in such account and the

proceeds thereof.

 

ARTICLE IV

CHANGE IN

CIRCUMSTANCES

 

4.1           Yield

Protection.

 

If, on or after the date of

this Agreement, the adoption of any law or any governmental or quasi–governmental

rule, regulation, policy, guideline or directive (whether or not having the

force of law), or any change in the interpretation or administration thereof by

any governmental or quasi-governmental authority, central bank or comparable agency

charged with the interpretation or administration thereof, or compliance by any

Lender or applicable Lending Installation or the Issuing Bank with any request

or directive (whether or not having the force of law) of any such authority,

central bank or comparable agency:

 

(a)           subjects any Lender or any applicable

Lending Installation or the Issuing Bank to any Taxes, or changes the basis of

taxation of payments (other than with respect to Excluded Taxes) to any Lender

or the Issuing Bank in respect of its LIBOR Loans, Facility Letters of Credit

or participations therein, or

 

(b)           imposes or increases or deems

applicable any reserve, assessment, insurance charge, special deposit or

similar requirement against assets of, deposits with or for the account of, or

credit extended by, any Lender or any applicable Lending Installation or the

Issuing Bank (other than reserves and assessments taken into account in

determining the interest rate applicable to LIBOR Advances), or

 

(c)           imposes any other condition the result

of which is to increase the cost to any Lender or any applicable Lending

Installation or the Issuing Bank of making, funding or maintaining its LIBOR

Loans, or of issuing or participating in Facility Letters of Credit, or reduces

any amount receivable by any Lender or any applicable Lending Installation or

the Issuing Bank in connection with its LIBOR Loans, Facility Letters of Credit

or participations therein, or requires any Lender or any applicable Lending

Installation or the Issuing Bank to make any payment calculated by reference to

the amount of LIBOR Loans, Facility Letters of Credit or participations therein

held or interest or LC Fees received by it, by an amount deemed material by

such Lender or the Issuing Bank as the case may be, and the result of any of

the foregoing is to increase the cost to such Lender or applicable Lending

Installation or the Issuing Bank, as the case may be, of making or maintaining

its LIBOR Loans or Commitment or of issuing or participating in Facility

Letters of Credit or to reduce the return received by such Lender or applicable

Lending Installation or the Issuing Bank, as the case may be, in connection

with such LIBOR Loans, Commitment, Facility Letters of Credit or participations

therein, then, within 15 days of demand by such Lender or the Issuing Bank, as

the case may be, the Borrower shall pay such Lender or the Issuing Bank, as the

case may be, such additional amount or amounts as will compensate such Lender

or the Issuing Bank, as the case may be, for such increased cost or reduction

in amount received.

 

4.2           Changes in Capital Adequacy

Regulations.

 

If a Lender or the Issuing Bank

in good faith determines the amount of capital required or expected to be

maintained by such Lender or the Issuing Bank, any Lending Installation of such

Lender or the Issuing Bank or any corporation controlling such Lender or the

Issuing Bank is increased as a result of a Change (as hereinafter defined),

then, within 15

 

31

 

days of demand by such Lender

or the Issuing Bank, the Borrower shall pay such Lender or the Issuing Bank the

amount necessary to compensate for any shortfall in the rate of return on the

portion of such increased capital which such Lender or the Issuing Bank in good

faith determines is attributable to this Agreement, its Outstanding Credit

Exposure or its obligation to make Loans and issue or participate in Facility

Letters of Credit, as the case may be, hereunder (after taking into account

such Lender’s or the Issuing Bank’s policies as to capital adequacy).  “Change” means (i) any change after the

date of this Agreement in the Risk–Based Capital Guidelines (as

hereinafter defined) or (ii) any adoption of or change in any other law,

governmental or quasi–governmental rule, regulation, policy, guideline,

interpretation, or directive (whether or not having the force of law) after the

date of this Agreement which affects the amount of capital required or expected

to be maintained by any Lender or the Issuing Bank or any Lending Installation

or any corporation controlling any Lender or the Issuing Bank. “Risk–Based

Capital Guidelines” means (i) the risk–based capital guidelines in

effect in the United States on the date of this Agreement, including transition

rules, and (ii) the corresponding capital regulations promulgated by

regulatory authorities outside the United States implementing the July 1988

report of the Basel Committee on Banking Regulation and Supervisory Practices

Entitled “International Convergence of Capital Measurements and Capital

Standards,” including transition rules, and any amendments to such regulations

adopted prior to the date of this Agreement.

 

4.3           Availability of Types of Advances.

 

If any Lender in good faith

determines that maintenance of any of its LIBOR Loans at a suitable Lending

Installation would violate any applicable law, rule, regulation or directive,

whether or not having the force of law, the Administrative Agent shall suspend

the availability of the affected Type of Advance and require any LIBOR Advances

of the affected Type to be repaid; or if the Required Lenders in good faith

determine that (i) deposits of a type or maturity appropriate to match

fund LIBOR Advances are not available, or (ii) an interest rate applicable

to a Type of Advance does not accurately reflect the cost of making a LIBOR

Advance of such Type, then, the Administrative Agent shall suspend the

availability of the affected Type of Advance with respect to any LIBOR Advances

made after the date of any such determination. 

If the Borrower is required to so repay a LIBOR Advance, the Borrower

may concurrently with such repayment borrow from the Lenders, in the amount of

such repayment, a Loan bearing interest at the Alternate Base Rate.

 

4.4           Funding

Indemnification.

 

If any payment of a ratable

LIBOR Advance or a Competitive Bid Loan occurs on a date which is not the last

day of the applicable Interest Period, whether because of acceleration,

prepayment or otherwise, or a ratable LIBOR Advance or a Competitive Bid Loan is

not made on the date specified by the Borrower for any reason other than

default by the Lenders or as a result of unavailability pursuant to

Section 4.3, the Borrower will indemnify each Lender for any loss or cost

incurred by it resulting therefrom, including, without limitation, any loss or

cost in liquidating or employing deposits acquired to fund or maintain the

ratable LIBOR Advance or Competitive Bid Loan, as the case may be, and shall

pay all such losses or costs within fifteen (15) days after written demand

therefor.  Nothing in this Section 4.4

shall authorize the prepayment of a Competitive Bid Loan prior to the end of

the applicable Interest Period.

 

4.5           Taxes.

 

(i)            All payments by the Borrower to or

for the account of any Lender or the Administrative Agent hereunder or under

any Note shall be made free and clear of and without deduction for any and all

Taxes.  If the Borrower shall be

required by law to deduct any Taxes from or in respect of any sum payable

hereunder to any Lender or the Administrative Agent, (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

4.5) such Lender or the Administrative Agent (as the case may be) receives an

amount equal to the sum it would have received had no such deductions been

made, (b) the Borrower shall make such deductions, (c) the Borrower shall pay

the full amount deducted to the relevant authority in accordance with

applicable law and (d) the Borrower shall furnish to the Administrative Agent

the original copy of a receipt evidencing payment thereof within 30 days after

such payment is made.

 

32

 

(ii)           In addition, the

Borrower hereby agrees to pay any present or future stamp or documentary taxes

and any other excise or property taxes, charges or similar levies which arise

from any payment made hereunder or under any Note or from the execution or

delivery of, or otherwise with respect to, this Agreement or any Note (“Other

Taxes”).

 

(iii)          The Borrower hereby agrees to indemnify the Administrative

Agent and each Lender for the full amount of Taxes or Other Taxes (including,

without limitation, any Taxes or Other Taxes imposed on amounts payable under

this Section 4.5) paid by the Administrative Agent or such Lender and any

liability (including penalties, interest and expenses) arising therefrom or

with respect thereto.  Payments due

under this indemnification shall be made within 30 days of the date the

Administrative Agent or such Lender makes demand therefor pursuant to Section

4.6.

 

(iv)          Each Lender that is not incorporated under the laws of the

United States of America or a state thereof (each a “Non-U.S. Lender”) agrees

that it will, not more than ten Business Days after the date of this Agreement,

(i) deliver to each of the Borrower and the Administrative Agent two duly

completed copies of United States Internal Revenue Service Form W-8BEN or

W-8ECI, certifying in either case that such Lender is entitled to receive

payments under this Agreement without deduction or withholding of any United

States federal income taxes, and (ii) deliver to each of the Borrower and the

Administrative Agent a United States Internal Revenue Form W-8 or W-9, as the

case may be, and certify that it is entitled to an exemption from United States

backup withholding tax.  Each Non-U.S.

Lender further undertakes to deliver to each of the Borrower and the

Administrative Agent (x) renewals or additional copies of such form (or any

successor form) on or before the date that such form expires or becomes

obsolete, and (y) after the occurrence of any event requiring a change in the

most recent forms so delivered by it, such additional forms or amendments

thereto as may be reasonably requested by the Borrower or the Administrative

Agent.  All forms or amendments

described in the preceding sentence shall certify that such Lender is entitled

to receive payments under this Agreement without deduction or withholding of

any United States federal income taxes, unless

an event (including without limitation any change in treaty, law or regulation)

has occurred prior to the date on which any such delivery would otherwise be

required which renders all such forms inapplicable or which would prevent such

Lender from duly completing and delivering any such form or amendment with

respect to it and such Lender advises the Borrower and the Administrative Agent

that it is not capable of receiving payments without any deduction or

withholding of United States federal income tax.

 

(v)           For any period during which a Non-U.S. Lender has failed

to provide the Borrower with an appropriate form pursuant to clause (iv), above

(unless such failure is due to a change in treaty, law or regulation, or any

change in the interpretation or administration thereof by any governmental

authority, occurring subsequent to the date on which a form originally was

required to be provided), such Non-U.S. Lender shall not be entitled to

indemnification under this Section 4.5 with respect to Taxes imposed by the

United States.

 

(vi)          Any Lender that is entitled to an exemption from or

reduction of withholding tax with respect to payments under this Agreement or

any Note pursuant to the law of any relevant jurisdiction or any treaty shall

deliver to the Borrower (with a copy to the Administrative Agent), at the time

or times prescribed by applicable law, 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 following receipt of such

documentation.

 

(vii)         If the U.S. Internal

Revenue Service or any other governmental authority of the United States or any

other country or any political subdivision thereof asserts a claim that the

Administrative Agent did not properly withhold tax from amounts paid to or for

the account of any Lender (because the appropriate form was not delivered or properly completed, because such Lender failed to

notify the Administrative Agent of a change in circumstances which rendered its

exemption from withholding ineffective, or for any other reason), such Lender

shall indemnify the Administrative Agent fully for all amounts paid, directly

or indirectly, by the Administrative Agent as tax, withholding therefor, or

otherwise, including penalties and interest, and including taxes imposed by any

jurisdiction on amounts payable to the Administrative Agent under this

subsection, together with all costs and expenses related thereto (including

attorneys fees and time charges of attorneys for the Administrative Agent,

which attorneys may be employees

of the Administrative Agent).  The

obligations of the Lenders under this Section 4.5(vii) shall survive the

payment of the Obligations and termination of this Agreement.

 

33

 

4.6           Lender Statements; Survival of

Indemnity.

 

To the extent reasonably

possible, each Lender shall designate an alternate Lending Installation with

respect to its LIBOR Loans to reduce any liability of the Borrower to such

Lender under Sections 4.1, 4.2 and 4.5 or to avoid the unavailability of

Advances under Section 4.3, so long as such designation does not reduce such

Lender’s income or increase such Lender’s liabilities.  Each Lender shall deliver a written

statement of such Lender to the Borrower (with a copy to the Administrative

Agent) as to the amount due, if any, under Section 4.1, 4.2, 4.4 or 4.5.  Such written statement shall set forth in

reasonable detail the calculations upon which such Lender determined such

amount and shall be final, conclusive and binding on the Borrower in the

absence of manifest error. 

Determination of amounts payable under such Sections in connection with

a LIBOR Loan shall be calculated as though each Lender funded its LIBOR Loan

through the purchase of a deposit of the type and maturity corresponding to the

deposit used as a reference in determining the LIBOR Rate applicable to such

Loan, whether in fact that is the case or not. 

Unless otherwise provided herein, the amount specified in the written

statement of any Lender shall be payable on demand after receipt by the

Borrower of such written statement.  The

obligations of the Borrower under Sections 4.1, 4.2, 4.4 and 4.5 shall survive

payment of the Obligations and termination of this Agreement.

 

4.7           Replacement of Lenders under

Certain Circumstances.

 

The Borrower shall be permitted

to replace any Lender which (a) is not capable of receiving payments

without any deduction or withholding of United States federal income tax

pursuant to Section 4.5, or (b) cannot maintain its LIBOR

Loans at a suitable Lending Installation pursuant to Section 4.6,

with a replacement bank or other financial institution; provided that

(i) such replacement does not conflict with any applicable legal or

regulatory requirements affecting the remaining Lenders, (ii) no Default

or (after notice thereof to Borrower) no Unmatured Default  shall have occurred and be continuing at the

time of such replacement, (iii) the Borrower shall repay (or the replacement

bank or institution shall purchase, at par) all Loans and other amounts owing

to such replaced Lender prior to the date of replacement, (iv) the

Borrower shall be liable to such replaced Lender under Sections 4.4

and 4.6 if any LIBOR Loan owing to such replaced Lender shall be prepaid

(or purchased) other than on the last day of the Interest Period relating

thereto, (v) the replacement bank or institution, if not already a Lender,

and the terms and conditions of such replacement, shall be reasonably

satisfactory to the Administrative Agent, (vi) the replaced Lender shall

be obligated to make such replacement in accordance with the provisions of Section 13.3

(provided that the Borrower shall be obligated to pay the processing fee

referred to therein), (vii) until such time as such replacement shall be

consummated, the Borrower shall continue to pay all amounts payable hereunder

without setoff, deduction, counterclaim or withholding and (viii) any such

replacement shall not be deemed to be a waiver of any rights which the

Borrower, the Administrative Agent or any other Lender shall have against the

replaced Lender.

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.1           Effective

Date.  This Agreement shall not

become effective, and the Lenders shall not be required to make the initial

Advance hereunder unless (a) the Borrower shall have paid all fees due and

payable to the Lenders and the Administrative Agent hereunder, and (b) the

Borrower shall have furnished to the Administrative Agent, in form and

substance satisfactory to the Lenders and their counsel and with sufficient

copies for the Lenders, the following:

 

(i)            The duly executed

originals of the Loan Documents, including the Notes, payable to the order of

each of the Lenders, the Guaranty and this Agreement;

 

(ii)           Certified copies of

the articles of incorporation of the General Partner and the certificate of

limited partnership of the Borrower, both with all amendments and certified by

the appropriate governmental officer of the State of Indiana as of a recent date;

 

(iii)          Certificates of

good standing for the General Partner and the Borrower, certified by the

appropriate governmental officer of the State of Indiana, and if requested by

Administrative Agent, foreign qualification certificates for the General Partner

and the Borrower, certified by the appropriate governmental officer, for each

jurisdiction where the failure to so qualify or be licensed (if required) would

have a Material Adverse Effect;

 

34

 

(iv)          Copies, certified by

an officer of the General Partner, of (1) its formation documents (including

by-laws), together with all amendments thereto and (2) the formation documents

(including the Partnership Agreement) of the Borrower, together with all

amendments thereto;

 

(v)           An incumbency

certificate, executed by an officer of the General Partner, which shall

identify by name and title and bear the signature of the Persons authorized to

sign the Loan Documents and to make borrowings hereunder on behalf of the Borrower,

upon which certificate the Administrative Agent and the Lenders shall be

entitled to rely until informed of any change in writing by the Borrower;

 

(vi)          Copies, certified by

the Secretary or Assistant Secretary, of the General Partner’s Board of Directors’

resolutions (and resolutions of other bodies, if any are deemed necessary by

counsel for any Lender) authorizing the Advances provided for herein and the

execution, delivery and performance of the Loan Documents to be executed and

delivered by the General Partner and the Borrower hereunder;

 

(vii)         A written opinion of

the General Partner and the Borrower’s counsel, addressed to the Lenders in

substantially the form of Exhibit D hereto;

 

(viii)        A certificate,

signed by an officer of the General Partner on behalf of the Borrower and for

itself, stating that on the initial Borrowing Date no Default or Unmatured

Default has occurred and is continuing and that all representations and

warranties of the General Partner and the 

Borrower are true and correct as of the initial Borrowing Date;

 

(ix)           The most recent

financial statements of the General Partner and the Borrower and a certificate

from an officer of the General Partner that no material adverse change in the

General Partner’s or the Borrower’s financial condition has occurred since

September 30, 2000;

 

(x)            UCC financing

statement, judgment, and tax lien searches with respect to the General Partner

and the Borrower from their states of organization and the states where they

have their principal place of business;

 

(xi)           Evidence of

sufficient Unencumbered Assets (which evidence if requested by Administrative

Agent may include mortgage releases and title policies) to assist the

Administrative Agent in determining the Borrower’s compliance with the covenants

set forth in Article VII herein;

 

(xii)          Written money

transfer instructions, in substantially the form of Exhibit E hereto,

addressed to the Administrative Agent and signed by an Authorized Officer,

together with such other related money transfer authorizations as the

Administrative Agent may have reasonably requested;

 

(xiii)         Evidence that all

parties whose consent is required for Borrower or General Partner to execute

the Loan Documents have provided such consents; and

 

(xiv)        Such other documents

as any Lender or its counsel may have reasonably requested, the form and

substance of which documents shall be acceptable to the parties and their

respective counsel.

 

Until such time as the

foregoing conditions are satisfied, the Existing Agreement shall remain in

effect.  From and after the satisfaction

of such conditions, this Agreement shall be in effect and each of the new

Lenders that are parties to this Agreement shall be added as Lenders and the

Commitments of all Lenders shall be as set forth on the signature pages.

 

35

 

5.2           Each Advance.  The Lenders shall not be required to make

any Advance (including Swing Line Loans) other than an Advance or Swing Line

Loan that, after giving effect thereto and to the application of the proceeds

thereof, does not increase the aggregate amount of outstanding Advances

(including Swing Line Loans) and Competitive Bid Loans, unless on the

applicable Borrowing Date:

 

(i)            There exists no

Default or Unmatured Default;

 

(ii)           The representations

and warranties contained in Article VI are true and correct as of such

Borrowing Date with respect to the General Partner, the Borrower and to any

Subsidiary in existence (as applicable) on such Borrowing Date, except to the

extent any such representation or warranty is stated to relate solely to an

earlier date, in which case such representation or warranty shall be true and

correct on and as of such earlier date; and

 

(iii)          All legal matters

incident to the making of such Advance (including Swing Line Loans) shall be

satisfactory to the Lenders and their counsel.

 

Each Borrowing Notice with

respect to each such Advance (including Swing Line Loans) shall constitute a

representation and warranty by the Borrower that the conditions contained in

Sections 5.2(i) and (ii) have been satisfied. 

Any Lender may require a duly completed compliance certificate in

substantially the form of Exhibit F hereto (including all schedules or

exhibits) as a condition to making an Advance (including Swing Line Loans);

provided that the calculations contained therein shall be based on the most

recent quarterly information available.

 

ARTICLE VI

REPRESENTATIONS AND

WARRANTIES

 

The General Partner and the

Borrower each respectively (unless otherwise noted) represents and warrants to

the Lenders that:

 

6.1           Existence.  It is duly organized, validly existing and

in good standing under the laws of the State of Indiana, with its principal

place of business in Indianapolis, Indiana and is duly qualified as a foreign

corporation or partnership, properly licensed (if required), in good standing

and has all requisite authority to conduct its business in each jurisdiction in

which its business is conducted.  Each

of its Subsidiaries is duly organized, validly existing and in good standing

under the laws of its jurisdiction of organization and has all requisite

authority to conduct its business in each jurisdiction in which its business is

conducted.

 

6.2          Authorization

and Validity.  It has the power and

authority and legal right to execute and deliver the Loan 

Documents and

to perform its obligations thereunder. 

The execution and delivery by it of the Loan Documents and the

performance of its obligations thereunder have been duly authorized by proper

proceedings, and the Loan Documents constitute legal, valid and binding

obligations of, respectively, the General Partner or the Borrower enforceable

against such entity in accordance with their terms, except as enforceability

may be limited by bankruptcy, insolvency or similar laws affecting the

enforcement of creditors’ rights generally and general principles of equity.

 

6.3           No Conflict;

Government Consent.  Neither the

execution and delivery by it of the Loan Documents, nor the consummation of the

transactions therein contemplated, nor compliance with the provisions thereof

will violate any law, rule, regulation, order, writ, judgment, injunction,

decree or award binding on, respectively, the General Partner or the Borrower

or any of such entity’s Subsidiaries or such entity’s or any Subsidiary’s

articles of incorporation, by-laws,

 

36

 

certificate of limited

partnership or partnership agreement or the provisions of any indenture,

instrument or agreement to which such entity or any of its Subsidiaries is a

party or is subject, or by which it, or its Property, is bound, or conflict

with or constitute a default thereunder, or result in the creation or

imposition of any Lien in, of or on the Property of such entity or a Subsidiary

pursuant to the terms of any such indenture, instrument or agreement.  No order, consent, approval, license,

authorization, or validation of, or filing, recording or registration with, or

exemption by, any governmental or public body or authority, or any subdivision

thereof, is required to authorize, or is required in connection with the

execution, delivery and performance of, or the legality, validity, binding

effect or enforceability of, any of the Loan Documents.

 

6.4           Financial

Statements; Material Adverse Change. 

The September 30, 2000 consolidated financial statements of the

General Partner, the Borrower and their Subsidiaries heretofore delivered to

the Lenders were prepared in accordance with GAAP in effect on the date such

statements were prepared and fairly present the consolidated financial

condition and operations of the General Partner, the Borrower and their

Subsidiaries at such date and the consolidated results of their operations for

the period then ended.  Since

September 30, 2000, there has been no change in the business, Property,

prospects, condition (financial or otherwise) or results of operations of the

General Partner, the Borrower and their Subsidiaries which could have a

Material Adverse Effect.

 

6.5           Taxes.  It and its Subsidiaries have filed all United States federal tax

returns and all other tax returns which are required to be filed and have paid

all taxes due pursuant to said returns or pursuant to any assessment received

by, respectively, the General Partner or the Borrower or any of its

Subsidiaries except such taxes, if any, as are being contested in good faith

and as to which adequate reserves have been provided.  No tax liens have been filed and no claims are being asserted

with respect to any such taxes.  The

charges, accruals and reserves on the books of the General Partner, the

Borrower and its Subsidiaries in respect of any taxes or other governmental

charges are adequate.

 

6.6           Litigation

and Guarantee Obligations. 

There is no litigation, arbitration, governmental investigation,

proceeding or inquiry pending or, to the knowledge of any of its officers,

threatened against or affecting the General Partner, the Borrower or any of

their Subsidiaries which could have a Material Adverse Effect.  It has no material contingent obligations

not provided for or disclosed in the financial statements referred to in

Section 7.1.

Subsidiaries.  Schedule 1 hereto contains an accurate list

of all of the presently existing Subsidiaries of such entity, setting forth

their respective jurisdictions of incorporation and the percentage of their

respective capital stock owned by it or its

 

6.7           Subsidiaries.  All of the issued and outstanding shares of

capital stock of such Subsidiaries have been duly authorized and issued and are

fully paid and non–assessable.

 

6.8           ERISA.  The Unfunded Liabilities of all Single Employer Plans do not in

the aggregate exceed $1,000,000. 

Neither it nor any other member of the Controlled Group has incurred, or

is reasonably expected to incur, any withdrawal liability to Multiemployer

Plans in excess of $250,000 in the aggregate. 

Each Plan complies in all material respects with all applicable

requirements of law and regulations, no Reportable Event has occurred with

respect to any Plan, neither it nor any other members of the Controlled Group

has withdrawn from any Plan or initiated steps to do so, and no steps have been

taken to reorganize or terminate any Plan.

 

6.9           Accuracy of Information.  All factual information heretofore or

contemporaneously furnished by or on behalf of such entity or any of its

Subsidiaries to the Administrative Agent or any Lender for purposes of or in

connection with this Agreement or any transaction contemplated hereby is, and

all other such factual information hereafter furnished by or on behalf of such

entity or any of its Subsidiaries to the Administrative Agent or any Lender

will be, true and accurate (taken as a whole) on the date as of which such

information is dated or certified and not incomplete by omitting to state any

material fact necessary to make such information (taken as a whole) not

misleading at such time.

Margin Stock.  It does not hold any margin stock (as

defined in Regulation U).

 

37

 

6.10         Material Agreements.  Neither it nor any Subsidiary is a party to

any agreement or instrument or subject to any charter or other corporate

restriction which could have a Material Adverse Effect.  Neither it nor any Subsidiary is in default

in the performance, observance or fulfillment of any of the obligations,

covenants or conditions contained in (i) any agreement to which it is a party,

which default could have a Material Adverse Effect or (ii) any agreement or

instrument evidencing or governing Indebtedness.

 

6.11         Compliance With Laws.  It and its Subsidiaries have complied, to

the best of their knowledge, with all applicable statutes, rules, regulations,

orders and restrictions of any domestic or foreign government or any

instrumentality or agency thereof, having jurisdiction over the conduct of their

respective businesses or the ownership of their respective Property.  Neither it nor any Subsidiary has received

any notice to the effect that its operations are not in material compliance

with any of the requirements of applicable federal, state and local

environmental, health and safety statutes and regulations or the subject of any

federal or state investigation evaluating whether any remedial action is needed

to respond to a release of any toxic or hazardous waste or substance into the

environment, which non–compliance or remedial action could have a

Material Adverse Effect.

 

6.12         Ownership of Properties.  On the date of this Agreement, it and its

Subsidiaries will have good title, free of all Liens other than those permitted

by Section 7.15, to all of the Property and assets reflected in the financial

statements as owned by it.

 

6.13         Investment Company Act.  Neither it nor any Subsidiary is an

“investment company” or a company “controlled” by an “investment company”,

within the meaning of the Investment Company Act of 1940, as amended.

 

6.14         Public Utility

Holding Company Act.  Neither it

nor any Subsidiary is a “holding company” or a “subsidiary company” of a

“holding company”, or an “affiliate” of a “holding company” or of a “subsidiary

company” of a “holding company”, within the meaning of the Public Utility

Holding Company Act of 1935, as amended.

 

6.15         Solvency.  (i) Immediately after the Closing Date and

immediately following the making of each Loan and after giving effect to the

application of the proceeds of such Loans, (a) the fair value of the assets of

the General Partner, the Borrower and their Subsidiaries on a consolidated

basis, at a fair valuation, will exceed the debts and liabilities,

subordinated, contingent or otherwise, of the General Partner, the Borrower and

their Subsidiaries on a consolidated basis; (b) the present fair saleable value

of the Property of the General Partner, the Borrower and their Subsidiaries on

a consolidated basis will be greater than the amount that will be required to

pay the probable liability of the General Partner, the Borrower and their

Subsidiaries on a consolidated basis on their debts and other liabilities,

subordinated, contingent or otherwise, as such debts and other liabilities

become absolute and matured; (c) the General Partner, the Borrower and their

Subsidiaries on a consolidated basis will be able to pay their debts and

liabilities, subordinated, contingent or otherwise, as such debts and

liabilities become absolute and matured; and (d) the General Partner, the

Borrower and their Subsidiaries on a consolidated basis will not have

unreasonably small capital with which to conduct the businesses in which they

are engaged as such businesses are now conducted and are proposed to be

conducted after the date hereof.

 

(ii)           It does not intend to, or to permit

any of its Subsidiaries to, and does not believe that it or any of its

Subsidiaries will, incur debts beyond its ability to pay such debts as they

mature, taking into account the timing of and amounts of cash to be received by

it or any such Subsidiary and the timing of the amounts of cash to be payable

on or in respect of its Indebtedness or the Indebtedness of any such

Subsidiary.

 

6.17         Insurance.  It and its Subsidiaries carry insurance on their Projects with

financially sound and reputable insurance companies, in such amounts, with such

deductibles and covering such risks as are customarily carried by companies

engaged in similar businesses and owning similar projects in localities where

it and its Subsidiaries operate, including, without limitation:

 

38

 

(i)            Property and casualty insurance

(including coverage for flood and other water damage for any Project located

within a 100-year flood plain) in the amount of the replacement cost of the

improvements at the Project;

 

(ii)           Loss of rental income insurance in

the amount not less than one year’s gross revenues from the Projects; and

 

(iii)          Comprehensive general liability

insurance in the amount of $20,000,000 per occurrence.

 

6.18         REIT Status.          The General Partner is in good

standing on the New York Stock Exchange, is qualified as a real estate

investment trust and currently is in compliance with all applicable provisions

of the Code.

 

6.19         Environmental Matters.  Each of the following representations and

warranties is true and correct on and as of the Closing Date except to the

extent that the facts and circumstances giving rise to any such failure to be

so true and correct, in the aggregate, could not reasonably be expected to have

a Material Adverse Effect:

 

(i)            To the best knowledge of,

respectively, the General Partner or the Borrower, the Projects of such entity

and its Subsidiaries do not contain, and have not previously contained, any

Materials of Environmental Concern in amounts or concentrations which

constitute or constituted a violation of, or could reasonably give rise to

liability under, Environmental Laws.  In

making this statement, General Partner and Borrower are assuming (except to the

extent that either of them has actual knowledge to the contrary) that any

Person handling any Materials of Environmental Concern at any Project will do

so in a reasonable manner and in accordance with all legal requirements.

 

(ii)           To the best knowledge of such entity,

the Projects of such entity and its Subsidiaries and all operations at the

Projects are in compliance, and have in the last two years been in compliance,

with all applicable Environmental Laws, and there is no contamination at, under

or about the Projects of such entity and its Subsidiaries, or violation of any

Environmental Law with respect to the Projects of such entity and its

Subsidiaries.

 

(iii)          Neither it nor any of its Subsidiaries

has received any notice of violation, alleged violation, non-compliance,

liability or potential liability regarding environmental matters or compliance

with Environmental Laws with regard to any of the Projects, nor does it have

knowledge or reason to believe that any such notice will be received or is

being threatened.

 

(iv)          To the best knowledge of such entity,

Materials of Environmental Concern have not been transported or disposed of

from the Projects of such entity and its Subsidiaries in violation of, or in a

manner or to a location which could reasonably give rise to liability under,

Environmental Laws, nor have any Materials of Environmental Concern been

generated, treated, stored or disposed of at, on or under any of the Projects

of such entity and its Subsidiaries in violation of, or in a manner that could

give rise to liability under, any applicable Environmental Laws.

 

(v)           No judicial proceedings or

governmental or administrative action is pending, or, to the knowledge of such

entity, threatened, under any Environmental Law to which such entity or any of

its Subsidiaries is or will be named as a party with respect to the Projects of

such entity and its Subsidiaries, nor are there any consent decrees or other

decrees, consent orders, administrative order or other orders, or other

administrative of judicial requirements outstanding under any Environmental Law

with respect to the Projects of such entity and its Subsidiaries.

 

(vi)          To the best knowledge of such entity,

there has been no release or threat of release of Materials of Environmental

Concern at or from the Projects of such entity and its Subsidiaries, or arising

from or related to the operations of such entity and its Subsidiaries in

connection with the Projects in violation of or in amounts or in a manner that

could give rise to liability under Environmental Laws.

 

39

 

6.20         Unencumbered Assets.  Schedule 3 hereto contains a complete and

accurate description of Unencumbered Assets as of the Closing Date.

ARTICLE

VII

COVENANTS

 

During the term of this Agreement,

unless the Required Lenders (and with respect to Sections 7.20(iii) and (v),

the Required Lenders, the Syndication Agent and Administrative Agent) shall

otherwise consent in writing:

 

7.1           Financial Reporting.  The General Partner and the Borrower will

maintain, for themselves and each Subsidiary, a system of accounting

established and administered in accordance with GAAP, and furnish to the

Lenders:

 

(i)            As soon as available, but in any

event not later than 45 days after the close of each fiscal quarter, for the

General Partner (consolidated with the Borrower and their Subsidiaries), an

unaudited consolidated balance sheet as of the close of each such period and

the related unaudited consolidated statements of income and retained earnings

and of cash flows of the General Partner, the Borrower and their Subsidiaries

for such period and the portion of the fiscal year through the end of such

period, setting forth in each case in comparative form the figures for the

previous year, all certified by the General Partner’s chief financial officer

or chief accounting officer;

 

(ii)           As soon as available, but in any

event not later than 45 days after the close of each fiscal quarter, for the

General Partner, the Borrower and their Subsidiaries, related reports in form

and substance satisfactory to the Lenders, all certified by the entity’s chief

financial officer or chief accounting officer, including a statement of Funds

From Operations, a description of Unencumbered Assets, a statement of Guarantee

Obligations, including a description of any guaranties of Investment Affiliate

Debt excluded from Guarantee Obligations pursuant to the definition thereof,

along with a certification that the conditions for exclusion are met and such

back-up information as may be requested by Administrative Agent, a listing of

capital expenditures, a report listing and describing all newly acquired

Projects, including their Property Operating Income, cost and secured or

unsecured Indebtedness assumed in connection with such acquisition, if any,

summary Project information for all Projects, including, without limitation,

their Property Operating Income, occupancy rates, square footage, property type

and date acquired or built, and such other information as may be requested;

 

(iii)          As soon as available, but in any event

not later than 90 days after the close of each fiscal year, for the General

Partner (consolidated with the Borrower and their Subsidiaries), audited

financial statements, including a consolidated balance sheet as at the end of

such year and the related consolidated statements of income and retained

earnings and of cash flows for such year, setting forth in each case in

comparative form the figures for the previous year, reported on by KPMG Peat

Marwick LLP (or other independent certified public accountants of nationally

recognized standing acceptable to Administrative Agent) without a “going

concern” or like qualification or exception, or qualification arising out of

the scope of the audit;

 

(iv)          As soon as available, but in any event

not later than 90 days after the close of each fiscal year, for the General

Partner, the Borrower and their Subsidiaries, related reports in form and

substance satisfactory to the Lenders, certified by the entity’s chief

financial officer or chief accounting officer, including reports containing

taxable income and Property Operating Income for each individual property;

 

(v)           Together with the quarterly and

annual financial statements required hereunder, a compliance certificate in

substantially the form of Exhibit F hereto signed by the General Partner’s

and the Borrower’s chief financial officers or chief accounting officers

showing the calculations and computations necessary to determine compliance

with this Agreement and stating that no Default or Unmatured Default exists, or

if any Default or Unmatured Default exists, stating the nature and status

thereof;

 

(vi)          As soon as possible and in any event

within 10 days after the General Partner or the Borrower knows that any

Reportable Event has occurred with respect to any Plan, a statement, signed by

the chief financial officer of such entity, describing said Reportable Event

and the action which such entity proposes to take with respect thereto;

 

40

 

(vii)         As soon as possible and in any event within 10 days after

receipt by the General Partner or the Borrower, a copy of (a) any notice or

claim to the effect that the General Partner, the Borrower or any of their

Subsidiaries is or may be liable to any Person as a result of the release by

such entity, any of its Subsidiaries, or any other Person of any toxic or

hazardous waste or substance into the environment, and (b) any notice alleging

any violation of any federal, state or local environmental, health or safety

law or regulation by the General Partner or the Borrower or any of their

Subsidiaries, which, in either case, could have a Material Adverse Effect;

 

(viii)        Promptly upon the

furnishing thereof to the shareholders of the General Partner or the partners

of the Borrower, copies of all financial statements, reports and proxy

statements so furnished;

 

(ix)           Promptly upon the filing thereof, copies of all

registration statements and annual, quarterly, monthly or other reports and any

other public information which the General Partner, the Borrower or any of

their Subsidiaries files with the Securities Exchange Commission;

 

(x)            Promptly upon the

distribution thereof to the press or the public, copies of all press releases;

and

 

(xi)           Such other information (including, without limitation,

financial statements for the Borrower and non-financial information) as the

Administrative Agent or any Lender may from time to time reasonably request.

 

7.2           Use of Proceeds.  The General Partner and the Borrower will,

and will cause each of their Subsidiaries to, use the proceeds of the Advances

for the general business purposes of the Borrower, including working capital

needs and interim financing for property acquisitions of new Projects,

construction of new improvements or expansions of existing improvements on

Projects, and to repay outstanding Advances. 

The General Partner and the Borrower will not, nor will they permit any

Subsidiary to, use any of the proceeds of the Advances (i) to purchase or carry

any “margin stock” (as defined in Regulation G or U) or (ii) to fund any

purchase of, or offer for, any Capital Stock of any Person, unless such Person

has consented to such offer prior to any public announcements relating thereto

and the Required Lenders have consented to such use of the proceeds of such

Advance.

 

7.3           Notice of Default.  The General Partner and the Borrower will

give, and will cause each of their Subsidiaries to give, prompt notice in

writing to the Lenders of the occurrence of (i) any Default or Unmatured Default

and (ii) of any other development, financial or otherwise, which could have a

Material Adverse Effect.

 

7.4           Conduct of Business.  The General Partner and the Borrower will

do, and will cause each of their Subsidiaries to do, all things necessary to remain

duly incorporated and/or duly qualified, validly existing and in good standing

as a real estate investment trust, corporation, general partnership or limited

partnership, as the case may be, in its jurisdiction of incorporation/formation

and maintain all requisite authority to conduct its business in each

jurisdiction in which its business is conducted and to carry on and conduct its

businesses in substantially the same manner as it is presently conducted and,

specifically, neither the General Partner, the Borrower nor their respective

Subsidiaries will undertake any business other than the acquisition,

development, ownership, management, operation and leasing of office, industrial

and retail properties and ancillary businesses specifically related thereto,

except that the Borrower and its Subsidiaries may invest in (i) land, (ii)

non-office/industrial/retail property holdings, (iii) stock holdings, (iv)

mortgages (v) passive non-real estate investments and (vi) joint ventures and

partnerships, provided that the total investment in any one of the first five

of the foregoing categories does not exceed ten percent (10%) of Market

Capitalization, the total investment in the sixth category (joint ventures and

partnerships) does not exceed 20% of Market Capitalization, and the total

investment in all of the foregoing investment categories in the aggregate is

less than or equal to twenty-five percent (25%) of Market

 

41

 

Capitalization.  For the purposes of this Section 7.4, joint

ventures and partnerships shall be valued in accordance with GAAP, non-revenue

generating investments such as land and stock holdings shall be valued at the

lower of acquisition cost or market value, and the value of all other investments

shall be determined by capitalizing Property Operating Income from these assets

at a rate of 9.5%.  In the event of any

disagreement as to how to value an investment, the judgment of the

Administrative Agent shall prevail.

 

7.5           Taxes.  The General Partner and the Borrower will

pay, and will cause each of their Subsidiaries to pay, when due all taxes,

assessments and governmental charges and levies upon them of their income,

profits or Projects, except those which are being contested in good faith by

appropriate proceedings and with respect to which adequate reserves have been

set aside.

 

7.6           Insurance.  The General Partner and the Borrower will,

and will cause each of their Subsidiaries to, maintain with financially sound

and reputable insurance companies insurance on all their Property in such

amounts and covering such risks as is consistent with sound business practice,

and the General Partner and the Borrower will furnish to any Lender upon

request full information as to the insurance carried.

 

7.7           Compliance with Laws.  The General Partner and the Borrower will,

and will cause each of their Subsidiaries to, comply with all laws, rules,

regulations, orders, writs, judgments, injunctions, decrees or awards to which

they may be subject.

 

7.8           Maintenance of Properties.  The General Partner and the Borrower will,

and will cause each of their Subsidiaries to, do all things necessary to

maintain, preserve, protect and keep its Property in good repair, working order

and condition, and make all necessary and proper repairs, renewals and

replacements so that their businesses carried on in connection therewith may be

properly conducted at all times.

 

7.9           Inspection.  The General Partner and the Borrower will,

and will cause each of their Subsidiaries to, permit the Lenders, by their

respective representatives and agents, to inspect any of the Projects,

corporate books and financial records of the General Partner, the Borrower and

each of their Subsidiaries, to examine and make copies of the books of accounts

and other financial records of the General Partner, the Borrower and each of

their Subsidiaries, and to discuss the affairs, finances and accounts of the

General Partner, the Borrower and each of their Subsidiaries, and to be advised

as to the same by, their respective officers at such reasonable times and

intervals as the Lenders may designate.

 

7.10         Maintenance of Status.  The General Partner shall at all times

(i) remain a corporation listed and in good standing on the New York Stock

Exchange, and (ii) maintain its status as a real estate investment trust

in compliance with all applicable provisions of the Code.

 

7.11         Dividends.  Provided there is not a continuing Default

under Section 8.1 or Section 8.2, and there is not a continuing

Default under Section 8.3 relating to a breach of any of the covenants

contained in Section 7.20, the General Partner and its Subsidiaries shall be

permitted to declare and pay dividends on their Capital Stock from time to time

in amounts determined by the General Partner, provided, however, that subject

to the terms of the next sentence, in no event shall the General Partner or any

of its Subsidiaries declare or pay dividends on their Capital Stock if

dividends paid in any period of four fiscal quarters, in the aggregate, would

exceed 90% of Funds From Operations for such period.  Notwithstanding the foregoing, the General Partner shall be

permitted to distribute whatever amount of dividends is necessary to maintain

its tax status as a real estate investment trust, provided there is not a

continuing Default under Sections 8.1 or 8.2.

 

7.12         Merger; Sale of Assets.  The General Partner and the Borrower will

not, nor will they permit any of their Subsidiaries to, enter into any merger,

consolidation, reorganization or liquidation or transfer or otherwise dispose

of all or a Substantial Portion of their Property, except for such transactions

that occur between Wholly-Owned Subsidiaries, provided, however, the General

Partner or the Borrower may merge with or acquire other companies as partnerships

so long as:

 

42

 

(i)            After giving effect to such merger or acquisition, no

provision of this Agreement will have been violated;

 

(ii)           the General Partner or the Borrower will be the surviving

entity; and

 

(iii)          such merger is not

accomplished through a hostile takeover.

 

The Borrower will notify all of

the Lenders of all material acquisitions, dispositions, mergers or asset

purchases regardless of whether or not the Required Lenders must first give

their written consent.

 

7.13         General

Partner’s Ownership and Control of Borrower.  The General Partner will not relinquish, and will not allow any

reduction in, its ownership or control of the Borrower and will not allow or

suffer to exist any pledge, other encumbrance or the conversion to limited

partnership interests of any of the general partnership interests in the

Borrower; provided that (i) the General Partner’s ownership of the

Borrower may be reduced to 67% by the issuance of additional limited partnership

units so long as the General Partner remains the sole general partner of

Borrower and (ii) the General Partner’s ownership of the Borrower may be

reduced to and/or below 67% by the conversion of a portion of the General

Partner’s general partnership interest in the Borrower into limited partnership

interests and the transfer of such interests to a wholly owned Subsidiary of

the General Partner so long as (a) the General Partner remains the sole general

partner of Borrower and (b) such Subsidiary is a Subsidiary Guarantor and does

not own any assets other than its limited partnership interest in the Borrower.

 

7.14         Sale and Leaseback.  The General Partner and the Borrower will

not, nor will they permit any of their Subsidiaries to, sell or transfer any of

its Projects in order to concurrently or subsequently lease as lessee such or

similar Projects.

 

7.15         Liens.  The General Partner and the Borrower will not, nor will they

permit any of their Subsidiaries to, create, incur, or suffer to exist any Lien

in, of or on the Property of the General Partner, the Borrower or any of their

Subsidiaries, except:

 

(i)            Liens for taxes, assessments or

governmental charges or levies on their Property if the same shall not at the

time be delinquent or thereafter can be paid without penalty, or are being

contested in good faith and by appropriate proceedings and for which adequate

reserves shall have been set aside on their books;

 

(ii)           Liens imposed by law, such as carriers', warehousemen's

and mechanics' liens and other similar liens arising in the ordinary course of

business which secure payment of obligations not more than 60 days past due or

which are being contested in good faith by appropriate proceedings and for

which adequate reserves shall have been set aside on its books;

 

(iii)          Liens arising out of pledges or deposits under worker's

compensation laws, unemployment insurance, old age pensions, or other social

security or retirement benefits, or similar legislation;

 

(iv)          Utility easements, building restrictions and such other

encumbrances or charges against real property as are of a nature generally

existing with respect to properties of a similar character and which do not in

any material way affect the marketability of the same or interfere with the use

thereof in the business of the General Partner, the Borrower or their

Subsidiaries;

 

(v)           Liens existing on the date hereof and described in

Schedule 2 hereto; and

 

(vi)          Liens arising in connection with any Indebtedness

permitted hereunder to the extent such Liens will not result in a violation of

any of the provisions of this Agreement.

 

43

 

Liens permitted pursuant to

this Section 7.15 shall be deemed to be “Permitted Liens”.

 

7.16         Affiliates.  The General Partner and the Borrower will

not, nor will they permit any of their Subsidiaries to, enter into any

transaction (including, without limitation, the purchase or sale of any

Property or service) with, or make any payment or transfer to, any Affiliate

except in the ordinary course of business and pursuant to the reasonable

requirements of the General Partner's, the Borrower's or such Subsidiary's

business and upon fair and reasonable terms no less favorable to the General

Partner, the Borrower or such Subsidiary than the General Partner, the Borrower

or such Subsidiary would obtain in a comparable arms-length transaction.

 

7.17         Interest Rate Hedging.  The General Partner and the Borrower will

not enter into or remain liable upon, nor will they permit any Subsidiary to

enter into or remain liable upon, any agreements, devices or arrangements

designed to protect at least one of the parties thereto from the fluctuations

of interest rates, exchange rates or forward rates applicable to such party's

assets, liabilities or exchange transactions, including, but not limited to,

interest rate exchange agreements, forward currency exchange agreements,

interest rate cap or collar protection agreements, forward rate currency or

interest rate options unless such agreement, device or arrangement was entered

into by the General Partner or the Borrower in the ordinary course of its

business for the purpose of hedging interest rate risk to the General Partner

or the Borrower.

 

7.18         Variable Interest

Indebtedness.  The General

Partner shall not at any time permit the outstanding principal balance of

Indebtedness of the General Partner and the Borrower and their Subsidiaries

which bears interest at an interest rate that is not fixed through the maturity

date of such Indebtedness to exceed $950,000,000.

 

7.19         Consolidated

Net Worth.  The General Partner,

as of the last day of any fiscal quarter, shall maintain a Consolidated Net

Worth of not less than the sum of (i) $3,000,000,000 plus

(ii) seventy-five percent (75%) of the aggregate proceeds received by the

General Partner (net of customary related fees and expenses) in connection with

any offering of stock in the General Partner or partnership interests in the

Borrower after June 30, 2000.

 

7.20         Indebtedness and Cash Flow Covenants.  The General Partner on a consolidated basis

with the Borrower and their Subsidiaries shall not, as of the last day of any

fiscal quarter, permit:

 

(i)            the ratio of EBITDA

to Interest Expense to be less than 2.25 to 1.0 for the quarter then ended;

 

(ii)           the ratio of Adjusted

EBITDA to Fixed Charges to be less than 1.75 to 1.0 for the quarter then ended;

 

(iii)          Total Liabilities

to exceed fifty-five percent (55%) of Market Capitalization;

 

(iv)          Consolidated Total

Indebtedness to exceed fifty percent (50%) of Market Capitalization;

 

(v)           the Value of

Unencumbered Assets to be less than 1.85 times the Consolidated Senior

Unsecured Indebtedness;

 

(vi)          the ratio obtained

by dividing:  (a) the Property Operating

Income from all Unencumbered Assets by (b) Debt Service on Consolidated

Unsecured Indebtedness to be less than 2.00 to 1.0 for the quarter then ended;

or

 

(vii)         Consolidated Secured Indebtedness to

exceed thirty-five percent (35%) of Market Capitalization.

 

7.21         Environmental Matters.  The General Partner and the Borrower will

and will cause each of their Subsidiaries to:

 

44

 

(i)            comply with, and use its best

efforts to ensure compliance by all tenants and subtenants, if any, with, all

applicable Environmental Laws and obtain and comply with and maintain, and use

its best efforts to ensure that all tenants and subtenants obtain and comply

with and maintain, any and all licenses, approvals, notifications,

registrations or permits required by applicable Environmental Laws, except to

the extent that failure to do so could not be reasonably expected to have a

Material Adverse Effect;

 

(ii)           conduct and complete all

investigations, studies, sampling and testing, and all remedial, removal and

other actions required under Environmental

Laws and promptly comply in all material respects with all lawful orders and

directives of all Governmental Authorities regarding Environmental Laws, except

to the extent that (a) the same are being contested in good faith by

appropriate proceedings and the pendency of such proceedings could not be

reasonably expected to have a Material Adverse Effect, or (b) the General

Partner has determined in good faith that contesting the same is not in the

best interests of the General Partner, the Borrower and their Subsidiaries and

the failure to contest the same could not be reasonably expected to have a

Material Adverse Effect; or

 

(iii)          defend, indemnify and hold harmless

the Administrative Agent and each Lender, and their respective employees,

agents, officers and directors, from and against any claims, demands,

penalties, fines, liabilities, settlements, damages, costs and expenses of

whatever kind or nature known or unknown, contingent or otherwise, arising out

of, or in any way relating to the violation of, noncompliance with or liability

under any Environmental Laws applicable to the operations of the General

Partner, the Borrower, their Subsidiaries or the Projects, or any orders,

requirements or demands of Governmental Authorities related thereto, including,

without limitation, attorney’s and consultant’s fees, investigation and

laboratory fees, response costs, court costs and litigation expenses, except to

the extent that any of the foregoing arise out of the gross negligence or

willful misconduct of the party seeking indemnification therefor; and

 

(iv)          prior to the acquisition of a new

Project after the Closing Date, perform or cause to be performed an

environmental investigation, which investigation shall at a minimum comply with

the specifications and procedures attached hereto as Exhibit G.  In connection with any such investigation,

Borrower shall cause to be prepared a report of such investigation, to be made

available to any Lenders upon request, for informational purposes and to assure

compliance with the specifications and procedures.

 

The indemnity contained in (iii) above shall continue in full

force and effect regardless of the termination of this Agreement. In connection

with any investigation pursuant to (iv) above, Borrower shall cause to be prepared

a report of such investigation, to be made available to any Lenders upon

request, for informational purposes and to assure compliance with the

specifications and procedures.

 

7.22         Control

of the General Partner.  The

General Partner’s management shall directly or indirectly control the ownership

of a minimum 2,000,000 common shares of the General Partner (or equivalent

operating partnership units exchangeable for common shares), adjusted for stock

splits, and the General Partner’s management and directors shall directly or

indirectly control ownership of a minimum 3,000,000 common shares of the

General Partner (or equivalent operating partnership units exchangeable for

common shares), adjusted for stock splits.

 

7.23         Borrower’s

Partnership Agreement.  The

General Partner shall not consent to any changes to Borrower’s partnership

agreement, other than changes in the ordinary course of business, without the

prior written consent of the Arranger.

 

7.24         General

Partner’s Assets.  The General

Partner shall not invest in or own any material assets directly other than its

partnership interest in Borrower.

 

7.25         Notice

of Rating Change.  The Borrower

shall notify the Administrative Agent promptly if there is any change in the

long term unsecured debt rating from S&P, Moody’s or Fitch, of either the

General Partner or the Borrower.

 

45

 

ARTICLE VIII

DEFAULTS

 

The

occurrence of any one or more of the following events shall constitute a

Default:

 

8.1           Nonpayment of any principal payment

on any Note when due.

 

8.2           Nonpayment of interest upon any Note

or of any Facility Fee or other payment Obligations under any of the Loan

Documents within five (5) Business Days after the same becomes due.

 

8.3           The breach of any of the terms or

provisions of Sections 7.2, 7.10 through 7.20 and 7.23 through 7.24.

 

8.4           Any representation

or warranty made or deemed made by or on behalf of the General Partner, the

Borrower or any of their Subsidiaries to the Lenders or the Administrative Agent

under or in connection with this Agreement, any Loan, or any certificate or

information delivered in connection with this Agreement or any other Loan

Document shall be materially false on the date as of which made.8.5  The breach (other than a breach which

constitutes a Default under Section 8.1, 8.2, 8.3 or 8.4) of any of the terms

or provisions of this Agreement which is not remedied within fifteen (15) days

after written notice from the Administrative Agent or any Lender.

 

8.5           Failure of the

General Partner, the Borrower or any of their Subsidiaries to pay when due any

Indebtedness aggregating in excess of $10,000,000 for which liability is not

limited to specific pledged collateral.

 

8.6           The General Partner,

the Borrower or any Subsidiary having more than $10,000,000 of Equity Value

shall (i) have an order for relief entered with respect to it under the Federal

bankruptcy laws as now or hereafter in effect, (ii) make an assignment for the

benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the

appointment of a receiver, custodian, trustee, examiner, liquidator or similar

official for it or any Substantial Portion of its Property, (iv) institute any

proceeding seeking an order for relief under the Federal bankruptcy laws as now

or hereafter in effect or seeking to adjudicate it as a bankrupt or insolvent,

or seeking dissolution, winding up, liquidation, reorganization, arrangement,

adjustment or composition of it or its debts under any law relating to

bankruptcy, insolvency or reorganization or relief of debtors or fail to file

an answer or other pleading denying the material allegations of any such

proceeding filed against it, (v) take any corporate action to authorize or

effect any of the foregoing actions set forth in this Section 8.7, (vi)

fail to contest in good faith any appointment or proceeding described in

Section 8.8 or (vii) not pay, or admit in writing its inability to

pay, its debts generally as they become due.

 

8.7           A receiver, trustee, examiner,

liquidator or similar official shall be appointed for the General Partner, the

Borrower or any Subsidiary having more than $10,000,000 of Equity Value or any

Substantial Portion of its Property, or a proceeding described in

Section 8.7(iv) shall be instituted against the General Partner, the

Borrower or any such Subsidiary and such appointment continues undischarged or

such proceeding continues undismissed or unstayed for a period of thirty (30)

consecutive days.

 

8.8           Any court, government or governmental

agency shall condemn, seize or otherwise appropriate, or take custody or

control of (each a “Condemnation”), all or any portion of the Projects of the

Borrower and its Subsidiaries which, when taken together with all other

Property of the Borrower and its Subsidiaries so condemned, seized,

appropriated, or taken custody or control of, during the twelve﷓month

period ending with the month in which any such Condemnation occurs, constitutes

a Substantial Portion of their Property.

 

8.9           The General Partner, the Borrower or any of their Subsidiaries

shall fail within sixty (60) days to pay, bond or otherwise discharge any

judgments or orders for the payment of money in an amount which, when added to

all other judgments or orders outstanding against the General Partner, the

Borrower or any Subsidiary would exceed $10,000,000 in the aggregate, which

have not been stayed on appeal or otherwise appropriately contested in good

faith.

 

46

 

8.10         The General Partner, the Borrower or any other member of the

Controlled Group shall have been notified by the sponsor of a Multiemployer

Plan that it has incurred withdrawal liability to such Multiemployer Plan in an

amount which, when aggregated with all other amounts required to be paid to

Multiemployer Plans by the General Partner, the Borrower or any other member of

the Controlled Group as withdrawal liability (determined as of the date of such

notification), exceeds $250,000 or requires payments exceeding $100,000 per

annum.

 

8.11         The General Partner, the Borrower or

any other member of the Controlled Group shall have been notified by the

sponsor of a Multiemployer Plan that such Multiemployer Plan is in

reorganization or is being terminated, within the meaning of Title IV of ERISA,

if as a result of such reorganization or termination the aggregate annual

contributions of the General Partner, the Borrower and the other members of the

Controlled Group (taken as a whole) to all Multiemployer Plans which are then

in reorganization or being terminated have been or will be increased over the

amounts contributed to such Multiemployer Plans for the respective plan years

of each such Multiemployer Plan immediately preceding the plan year in which

the reorganization or termination occurs by an amount exceeding $250,000.

 

8.12         Failure to remediate within the time

period permitted by law or governmental order, after all administrative

hearings and appeals have been concluded (or within a reasonable time in light

of the nature of the problem if no specific time period is so established),

material environmental problems related to Projects of the Borrower and its

Subsidiaries if the affected Projects have an aggregate book value in excess of

$20,000,000.

 

8.13         The occurrence of any default under any

Loan Document or the breach of any of the terms or provisions of any Loan

Document, which default or breach continues beyond any period of grace therein

provided.

The

revocation or attempted revocation of the Guaranty.

 

8.14         The occurrence of Default under the

Revolving Credit Agreement dated as of June 30, 2000 among Borrower,

General Partner, Administrative Agent, and the various other lenders identified

therein, or the Syndicated Term Loan Agreement dated as of July 2, 1999,

among Borrower, General Partner, Wachovia Bank, N.A. as administrative agent

and the various other lenders identified therein, or any amendment or

restatement of the foregoing or agreement entered into to refinance the loans

made pursuant to any of the foregoing agreements.

 

ARTICLE IX

ACCELERATION, WAIVERS, AMENDMENTS AND

REMEDIES

 

9.1           Acceleration.  If any Default described in Section 8.7 or

8.8 occurs with respect to the Borrower, the obligations of the Lenders to make

Loans and of the Issuing Bank to issue Facility Letters of Credit hereunder

shall automatically terminate and the Obligations shall immediately become due

and payable without any election or action on the part of the Administrative

Agent or any Lender.  If any other

Default occurs, the Administrative Agent may and will if directed by the Required

Lenders, terminate or suspend the obligations of the Lenders to make Loans

hereunder and to issue Facility Letters of Credit, or declare the Obligations

to be due and payable, or both, whereupon the Obligations shall become

immediately due and payable, without presentment, demand, protest or notice of

any kind, all of which the Borrower hereby expressly waives.

 

In

addition to the foregoing, following the occurrence of a Default and so long as

any Facility Letter of Credit has not been fully drawn and has not been

cancelled or expired by its terms, upon demand by the Administrative Agent

(which Administrative Agent agrees to make if requested to by the Required

Lenders) the Borrower shall deposit in the Letter of Credit Collateral Account

cash in an amount equal to the aggregate undrawn face amount of all outstanding

Facility Letters of Credit and all fees and other amounts due or which may

become due with respect thereto. The Borrower shall have no control over funds

in the Letter of Credit Collateral Account, which funds will be invested by the

Administrative Agent from time to time at its discretion in certificates of

deposit of First Chicago having a maturity not exceeding 30

 

47

 

days.  Such funds shall be promptly applied by the

Administrative Agent to reimburse any Issuing Bank for drafts drawn from time

to time under the Facility Letters of Credit. Such funds, if any, remaining in

the Letter of Credit Collateral Account following the payment of all Obligations

in full shall, unless Administrative Agent is otherwise directed by a court of

competent jurisdiction, be promptly paid over to the Borrower.

 

If,

within thirty (30) days after acceleration of the maturity of the Obligations

or termination of the obligations of the Lenders to make Loans hereunder or to

issue Facility Letters of Credit as a result of any Default (other than any

Default as described in Section 8.7 or 8.8 with respect to the Borrower) and

before any judgment or decree for the payment of the Obligations shall have

been obtained or entered, the Required Lenders (in their sole discretion) shall

so direct, the Administrative Agent shall, by notice to the Borrower, rescind

and annul such acceleration and/or termination.

 

9.2           Amendments.

 Subject to the provisions of this

Article IX, the Required Lenders (or the Administrative Agent with the consent

in writing of the Required Lenders), the Borrower and the General Partner may

enter into agreements supplemental hereto for the purpose of adding or

modifying any provisions to the Loan Documents or changing in any manner the

rights of the Lenders or the Borrower hereunder or waiving any Default

hereunder; provided, however, that no such supplemental agreement shall,

without the consent of Administrative Agent and Syndication Agent, waive any

Default under, or modify or amend Sections 7.20(iii) or (v); and provided,

further, however, that no such supplemental agreement shall, without the

consent of all Lenders:

 

(i)            Extend the Facility

Termination Date or forgive all or any portion of the principal amount of any

Loan or accrued interest thereon or the Facility Fee, reduce the Applicable

Margins on the underlying interest rate options or otherwise modify or add to

such interest rate options, or extend the time of payment of any of the

Obligations.

 

(ii)           Release the General

Partner from the Guaranty, or materially modify the Guaranty or waive a

material provision of the Guaranty.

 

(iii)          Reduce the

percentage specified in the definition of Required Lenders.

 

(iv)          Increase the amount

of the Aggregate Commitment to an amount in excess of $600,000,000.

 

(v)           Permit the Borrower

to assign or allow another Person to assume its rights under this Agreement.

 

(vi)          Amend this Section

9.2.

 

(vii)         Amend Section 2.23

such that payments that are now required to be applied in accordance with the

Funded Percentages of the Lenders shall be applied in any other manner.

 

No

amendment of any provision of this Agreement relating to the Administrative

Agent shall be effective without the written consent of the Administrative

Agent, and no amendment increasing the Commitment of any Lender shall be

effective without the written consent of such Lender.  The approval of the Required Lenders shall not be required to

increase the Aggregate Commitment in accordance with Section 2.1.

 

Notwithstanding

the foregoing: (1) no amendment, waiver, or consent shall, unless in writing

and signed by the Designating Lender on behalf of its respective Designated

Lender affected thereby, (a) subject such Designated Lender to any additional

obligations, (b) reduce the principal of, interest on, or the amounts due with

respect to, the Competitive Bid Loan Note made payable to such Designated

Lender, (c) postpone any date fixed for any payment of principal of, or

interest on, or other amounts due with respect to, the Competitive Bid Note

made payable to such Designated Lender, or (d) amend the definition of Required

Lenders hereunder in a manner which adversely affects the rights of such

Designated Lender.

 

48

 

9.3           Preservation

of Rights.  No delay or omission

of the Lenders or the Administrative Agent to exercise any right under the Loan

Documents shall impair such right or be construed to be a waiver of any Default

or an acquiescence therein, and the making of a Loan notwithstanding the

existence of a Default or the inability of the Borrower to satisfy the

conditions precedent to such Loan shall not constitute any waiver or

acquiescence.  Any single or partial

exercise of any such right shall not preclude other or further exercise thereof

or the exercise of any other right, and no waiver, amendment or other variation

of the terms, conditions or provisions of the Loan Documents whatsoever shall

be valid unless in writing signed by the Lenders required pursuant to Section

9.2, and then only to the extent in such writing specifically set forth.  All remedies contained in the Loan Documents

or by law afforded shall be cumulative and all shall be available to the

Administrative Agent and the Lenders until the Obligations have been paid in

full.

 

ARTICLE X

GENERAL PROVISIONS

 

10.1         Survival

of Representations.  All

representations and warranties of the Borrower contained in this Agreement

shall survive delivery of the Notes and the making of the Loans herein

contemplated.

 

10.2         Governmental

Regulation.  Anything contained

in this Agreement to the contrary notwithstanding, no Lender shall be obligated

to extend credit to the Borrower in violation of any limitation or prohibition

provided by any applicable statute or regulation.

 

10.3         Taxes.  Any taxes (excluding federal, state and

local income or franchise or other taxes on the overall net income of any

Lender) or other similar assessments or charges made by any governmental or

revenue authority in respect of the Loan Documents shall be paid by the

Borrower, together with interest and penalties, if any.

 

10.4         Headings.  Section headings in the Loan Documents are

for convenience of reference only, and shall not govern the interpretation of

any of the provisions of the Loan Documents.

 

10.5         Entire

Agreement.  The Loan Documents

embody the entire agreement and understanding among the Borrower, the General

Partner, the Administrative Agent and the Lenders and supersede all prior

commitments, agreements and understandings among the Borrower, the

Administrative Agent and the Lenders relating to the subject matter thereof,

except for the agreement of the Borrower to pay certain fees to the

Administrative Agent and the agreement of the Administrative Agent to pay

certain fees to the Lenders.

 

10.6         Several Obligations; Benefits of

this Agreement.  The respective

obligations of the Lenders hereunder are several and not joint and no Lender

shall be the partner or agent of any other (except to the extent to which the

Administrative Agent is authorized to act as such).  The failure of any Lender to perform any of its obligations

hereunder shall not relieve any other Lender from any of its obligations

hereunder.  This Agreement shall not be

construed so as to confer any right or benefit upon any Person other than the

parties to this Agreement and their respective successors and assigns.

 

10.7         Expenses;

Indemnification.  The Borrower

shall reimburse the Indemnified Parties on demand for any costs, internal

charges and reasonable out–of–pocket expenses (including, without

limitation, all reasonable fees for consultants and reasonable fees and

expenses for attorneys for the Indemnified Parties, which attorneys may be

employees of the Indemnified Parties) paid or incurred by the Indemnified

Parties (whether in their capacity as arranger, or, in the case of Bank One, NA

in its capacity as Administrative Agent) in connection with the preparation,

negotiation, execution, delivery, review, amendment, modification, and

administration of the Loan Documents. 

The Borrower also agrees to reimburse the Indemnified Parties and the

Lenders for any costs, internal charges and reasonable out–of–pocket

expenses (including, without limitation, all reasonable fees and expenses for

attorneys for the Indemnified Parties and the Lenders, which attorneys may be

employees of the Indemnified Parties or the Lenders) paid or incurred by the

Indemnified Parties

 

49

 

(whether

in their capacity as arranger, or, in the case of Bank One, NA, in its capacity

as Administrative Agent) or any Lender in connection with the collection and

enforcement of the Loan Documents (including, without limitation, any workout).  The Borrower further agrees to indemnify the

Indemnified Parties and each Lender and their directors, officers and employees

against all losses, claims, damages, penalties, judgments, liabilities and

reasonable expenses (including, without limitation, all expenses of litigation

or preparation therefor whether or not such entity is a party thereto) which

any of them may pay or incur arising out of or relating to this Agreement, the

other Loan Documents, the Projects, the transactions contemplated hereby or the

direct or indirect application or proposed application of the proceeds of any

Loan hereunder.  The obligations of the

Borrower under this Section 10.7 shall survive the termination of this

Agreement.

 

10.8         Numbers

of Documents.  All statements,

notices, closing documents, and requests hereunder shall be furnished to the

Administrative Agent with sufficient counterparts so that the Administrative

Agent may furnish one to each of the Lenders.

 

10.9         Accounting.  Except as provided to the contrary herein,

all accounting terms used herein shall be interpreted and all accounting

determinations hereunder shall be made in accordance with GAAP.

 

10.10       Severability

of Provisions.  Any provision in

any Loan Document that is held to be inoperative, unenforceable, or invalid in

any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable,

or invalid without affecting the remaining provisions in that jurisdiction or

the operation, enforceability, or validity of that provision in any other

jurisdiction, and to this end the provisions of all Loan Documents are declared

to be severable.

 

10.11       Nonliability

of Lenders.  The relationship

between the General Partner and the Borrower, on the one hand, and the Lenders,

the Arranger and the Administrative Agent, on the other, shall be solely that

of borrower and lender.  Neither the

Administrative Agent, the Arranger nor any Lender shall have any fiduciary

responsibilities to the General Partner and the Borrower.  Neither the Administrative Agent, the

Arranger nor any Lender undertakes any responsibility to the Borrower to review

or inform the Borrower of any matter in connection with any phase of the

Borrower’s business or operations.

 

10.12       Publicity.  The Lenders shall  have the right to do a tombstone publicizing the transaction

contemplated hereby without the consent of the Borrower or General Partner.

 

10.13       Choice of Law.  The loan documents (other than those

containing a contrary express choice of law provision) shall be construed in

accordance with the internal laws (and not the law of conflicts) of the state

of illinois, but giving effect to federal laws applicable to national banks.

 

10.14       Consent

to Jurisdiction.  The general

partner and the borrower each hereby irrevocably submits to the non–exclusive

jurisdiction of any united states federal or illinois state court sitting in

chicago in any action or proceeding arising out of or relating to any of the

loan documents and the general partner and the borrower each hereby irrevocably

agrees that all claims in respect of such action or proceeding may be heard and

determined in any such court and irrevocably waives any objection it may now or

hereafter have as to the venue of any such suit, action or proceeding brought

in such a court or that such court is an inconvenient forum. Nothing herein

shall limit the right of the administrative agent or any lender to bring

proceedings against the general partner or the borrower in the courts of any

other jurisdiction.  Any judicial

proceeding by the general partner or the borrower against the administrative

agent or any lender or any affiliate of the administrative agent or any lender

involving, directly or indirectly, any matter in any way arising out of,

related to, or connected with any loan document shall be brought only in a court

in chicago, illinois.

 

10.15       Waiver of

Jury Trial.  The general

partner, the borrower, the administrative agent and each lender hereby waive

trial by jury in any judicial proceeding involving, directly or indirectly, any

matter (whether sounding in tort, contract or otherwise) in any way arising out

of, related to, or connected with any loan document or the relationship

established thereunder.

 

50

 

10.16       Agent

Responsibilities. Borrower, the Administrative Agent and each Lender

acknowledges and agrees that the obligations of the Syndication Agent, the

Documentation Agent, the Managing Agents, and the Co-Agents (collectively, the

“Other Agents”) hereunder shall be limited to those obligations that are expressly

set forth herein, if any, or in any other written agreement with such parties,

and the Other Agents shall not be required to take any other action or assume

any liability except as may be required in their capacity as a Lender

hereunder.  Borrower, the Administrative

Agent and each Lender agrees that the indemnifications set forth herein for the

benefit of the Administrative Agent shall also run to the benefit of each Other

Agent to the extent such Other Agent incurs any loss, cost or damage arising from

its agency capacity hereunder.

 

ARTICLE XI

THE

ADMINISTRATIVE AGENT AND AGREEMENTS AMONG LENDERS

 

11.1         Appointment;

Nature of Relationship.  Bank

One, NA is hereby appointed by each of the Lenders as its contractual

representative (herein referred to as the “Agent”) hereunder and under each

other Loan Document, and each of the Lenders irrevocably authorizes the Agent

to act as the contractual representative of such Lender with the rights and

duties expressly set forth herein and in the other Loan Documents. The Agent

agrees to act as such contractual representative upon the express conditions

contained in this Article XI. Notwithstanding the use of the defined term

“Agent,” it is expressly understood and agreed that the Agent shall not have

any fiduciary responsibilities to any Lender by reason of this Agreement or any

other Loan Document and that the Agent is merely acting as the contractual

representative of the Lenders with only those duties as are expressly set forth

in this Agreement and the other Loan Documents.  In its capacity as the Lenders’ contractual representative, the

Agent (i) does not hereby assume any fiduciary duties to any of the Lenders,

(ii) is a “representative” of the Lenders within the meaning of Section 9-105

of the Uniform Commercial Code and (iii) is acting as an independent

contractor, the rights and duties of which are limited to those expressly set

forth in this Agreement and the other Loan Documents. Each of the Lenders

hereby agrees to assert with respect to the Loan Documents and administration

of the Loan, no claim against the Agent on any agency theory or any other

theory of liability for breach of fiduciary duty, all of which claims each

Lender hereby waives.

 

11.2         Powers.  The Administrative Agent shall have and may

exercise such powers under the Loan Documents as are specifically delegated to

the Administrative Agent by the terms of each thereof, together with such

powers as are reasonably incidental thereto. 

The Administrative Agent shall have no implied duties to the Lenders, or

any obligation to the Lenders to take any action thereunder except any action

specifically provided by the Loan Documents to be taken by the Administrative

Agent.

 

11.3         General

Immunity.  Neither the

Administrative Agent nor any of its directors, officers, agents or employees

shall be liable to the Borrower, the Lenders or any Lender for any action

lawfully taken or omitted to be taken by it or them hereunder or under any

other Loan Document or in connection herewith or therewith except for its or

their own gross negligence or willful misconduct.

 

11.4         No

Responsibility for Loans, Recitals, etc.  Except where the failure to do so constitutes gross negligence or

wilful misconduct, neither the Administrative Agent nor any of its directors,

officers, agents or employees shall be responsible for or have any duty to

ascertain, inquire into, or verify (i) any statement, warranty or

representation made in connection with any Loan Document or any borrowing

hereunder; (ii) the performance or observance of any of the covenants or

agreements of any obligor under any Loan Document, including, without

limitation, any agreement by an obligor to furnish information directly to each

Lender; (iii) the satisfaction of any condition specified in Article V, except

receipt of items required to be delivered to the Administrative Agent; (iv) the

validity, effectiveness or genuineness of any Loan Document or any other

instrument or writing furnished in connection therewith; or (v) the value,

sufficiency, creation, perfection or priority of any interest in any collateral

security.  The Administrative Agent

shall have no duty to disclose to the Lenders information that is not required

to be furnished by the Borrower to the Administrative Agent at such time, but

is voluntarily furnished by the Borrower to the Administrative Agent (either in

its capacity as Administrative Agent or in its individual capacity).

 

51

 

11.5         Action on

Instructions of Lenders.  The

Administrative Agent shall in all cases be fully protected in acting, or in

refraining from acting, hereunder and under any other Loan Document in

accordance with written instructions signed by the Required Lenders or, where

consent of all Lenders is required, all Lenders, and such instructions and any

action taken or failure to act pursuant thereto shall be binding on all of the

Lenders and on all holders of Notes. The Administrative Agent shall be fully

justified in failing or refusing to take any action hereunder and under any other

Loan Document unless it shall first be indemnified to its reasonable

satisfaction by the Lenders pro rata against any and all liability, cost and

expense that it may incur by reason of taking or continuing to take any such

action.

 

11.6         Employment

of Agents and Counsel.  The

Administrative Agent may execute any of its duties as Administrative Agent

hereunder and under any other Loan Document by or through employees, agents,

and attorneys–in–fact and so long as it exercises reasonable care

in the selection of such parties, the Administrative Agent shall not be

answerable to the Lenders, except as to money or securities received by it or

its authorized agents, for the default or misconduct of any such parties.  The Administrative Agent shall be entitled to

advice of counsel concerning all matters pertaining to the agency hereby

created and its duties hereunder and under any other Loan Document.

 

11.7         Reliance

on Documents; Coursel.  The

Administrative Agent shall be entitled to rely upon any Note, notice, consent,

certificate, affidavit, letter, telegram, statement, paper or document believed

by it to be genuine and correct and to have been signed or sent by the proper

person or persons, and, in respect to legal matters, upon the opinion of

counsel selected by the Administrative Agent, which counsel may be employees of

the Administrative Agent.

 

11.8         Administrative Agent’s

Reimbursement and Indemnification. 

The Lenders agree to reimburse and indemnify the Administrative Agent

ratably in proportion to their respective Commitments (i) for any reasonable

amounts not reimbursed by the Borrower or Guarantor for which the

Administrative Agent is entitled to reimbursement by the Borrower under the

Loan Documents including reasonable out-of-pocket expenses in connection with

the preparation, execution, delivery of the Loan Documents, (ii) for any other

reasonable out-of-pocket expenses incurred by the Administrative Agent on

behalf of the Lenders, in connection with the administration and enforcement of

the Loan Documents and (iii) for any liabilities, obligations, losses, damages,

penalties, actions, judgments, suits, costs, expenses or disbursements of any

kind and nature whatsoever which may be imposed on, incurred by or asserted

against the Administrative Agent in any way relating to or arising out of the

Loan Documents or any other document delivered in connection therewith or the

transactions contemplated thereby, or the enforcement of any of the terms

thereof or of any such other documents, provided that no Lender shall be liable

for (i) any of the foregoing to the extent they arise from the gross negligence

or willful misconduct of the Administrative Agent, or (ii) any costs or

expenses of the Administrative Agent’s in-house legal staff and personnel. The

obligations of the Lenders under this Section 11.8 shall survive payment of the

Obligations and termination of this Agreement, and shall not be reduced by the

designation of a Designated Lender to fund Competitive Bid Loans on behalf of a

Lender, provided that each Designated Lender shall be jointly and severally

liable with the Designating Lender for the Designating Lender’s Share (as

hereinafter determined) of the amounts due from such Designating Lender. The

Designated Lender’s Share of amounts due shall be equal to such amount due

multiplied by a fraction whose numerator is the amount funded by the Designated

Lender (but in no event more than the amount of Designating Lender’s

Commitment) and whose denominator is the amount of the Designating Lender’s

Commitment.

 

11.9         Rights as a

Lender.  In the event the

Administrative Agent is a Lender, the Administrative Agent shall have the same

rights and powers and the same duties and obligations hereunder and under any

other Loan Document as any Lender and may exercise the same as though it were

not the Administrative Agent, and the term “Lender” or “Lenders” shall, at any

time when the Administrative Agent is a Lender, unless the context otherwise

indicates, include the Administrative Agent in its individual capacity. The

Administrative Agent may accept deposits from, lend money to, and generally

engage in any kind of trust, debt, equity or other transaction, in addition to

those contemplated by this Agreement or any other Loan Document, with the

Borrower or any of its Subsidiaries in which the Borrower or such Subsidiary is

not restricted hereby from engaging with any other Person.

 

52

 

11.10       Lender

Credit Decision.  Each Lender

acknowledges that it has, independently and without reliance upon the

Administrative Agent or any other Lender and based on the financial statements

prepared by the Borrower and such other documents and information as it has

deemed appropriate, made its own credit analysis and decision to enter into

this Agreement and the other Loan Documents. Each Lender also acknowledges that

it will, independently and without reliance upon the Administrative Agent or

any other Lender and based on such documents and information as it shall deem

appropriate at the time, continue to make its own credit decisions in taking or

not taking action under this Agreement and the other Loan Documents.

 

11.11       Successor

Administrative Agent.  The

Administrative Agent may resign at any time by giving written notice thereof to

the Lenders and the Borrower, and the Administrative Agent shall be deemed to

have automatically resigned if it is no longer a Lender, such resignation in

either case to be effective upon the appointment of a successor Administrative

Agent or, if no successor Administrative Agent has been appointed, forty-five

days after the retiring Administrative Agent gives notice of its intention to

resign or ceases to be a Lender, as the case may be. The Administrative Agent

may be removed at any time with good cause by written notice received by the

Administrative Agent from the Required Lenders, such removal to be effective on

the date specified by the Required Lenders. Upon any such resignation or

removal, the Required Lenders shall have the right to appoint, on behalf of the

Borrower and the Lenders, a successor Administrative Agent. If no successor

Administrative Agent shall have been so appointed by the Required Lenders

within thirty days after the resigning Administrative Agent’s giving notice of

its intention to resign, then the resigning Administrative Agent may appoint,

on behalf of the Borrower and the Lenders, a successor Administrative Agent. If

the Administrative Agent has resigned or been removed and no successor

Administrative Agent has been appointed within 45 days, the Lenders shall

perform all the duties of the Administrative Agent hereunder and the Borrower

shall make all payments in respect of the Obligations to the applicable Lender

and for all other purposes shall deal directly with the Lenders. No successor

Administrative Agent shall be deemed to be appointed hereunder until such

successor Administrative Agent has accepted the appointment. Any such successor

Administrative Agent shall be a commercial bank (or a subsidiary thereof)

having capital and retained earnings of at least $500,000,000, except that if

the successor Administrative Agent is a subsidiary of a bank, such capital and

retained earnings requirement shall apply only to the parent bank. Upon the

acceptance of any appointment as Administrative Agent hereunder by a successor

Administrative Agent, such successor Administrative Agent shall thereupon

succeed to and become vested with all the rights, powers, privileges and duties

of the resigning or removed Administrative Agent. Upon the effectiveness of the

resignation or removal of the Administrative Agent, the resigning or removed

Administrative Agent and the successor Administrative Agent shall pro rate any

agency fees, and the resigning or removed Administrative Agent shall be

discharged from its duties and obligations thereafter arising hereunder and

under the Loan Documents. After the effectiveness of the resignation or removal

of an Administrative Agent, the provisions of this Article XI shall continue in

effect for the benefit of such Administrative Agent in respect of any actions

taken or omitted to be taken by it while it was acting as the Administrative

Agent hereunder and under the other Loan Documents.

 

11.12       Notice of

Defaults.  If a Lender becomes

aware of a Default or Unmatured Default, such Lender shall notify the

Administrative Agent of such fact provided that the failure to give such notice

shall not create liability on the part of a Lender.  Upon receipt of such notice that a Default or Unmatured Default

has occurred, the Administrative Agent shall notify each of the Lenders of such

fact.

 

11.13       Requests

for Approval.  If the

Administrative Agent requests in writing the consent or approval of a Lender,

such Lender shall respond and either approve or disapprove definitively in writing

to the Administrative Agent within ten Business Days (or sooner if such notice

specifies a shorter period for responses based on Administrative Agent’s good

faith determination that circumstances exist warranting its request for an

earlier response) after such written request from the Administrative

Agent.  If the Lender does not so

respond, that Lender shall be deemed to have approved the request.

 

11.14       Copies of

Documents.  Within fifteen

Business Days after a request by a Lender to the Administrative Agent for

documents furnished to the Administrative Agent by the Borrower, the

Administrative Agent shall provide copies of such documents to such Lender.

 

53

 

11.15       Defaulting

Lenders.  At such time as a Lender

becomes a Defaulting Lender, such Defaulting Lender’s right to vote on matters

which are subject to the consent or approval of the Required Lenders, each

affected Lender or all Lenders shall be immediately suspended until such time

as the Lender is no longer a Defaulting Lender, except that the amount of the

Commitment of the Defaulting Lender may not be changed without its

consent.  If a Defaulting Lender has

failed to fund its pro rata share of any Advance and until such time as such

Defaulting Lender subsequently funds its pro rata share of such Advance, all

Obligations owing to such Defaulting Lender hereunder shall be subordinated in

right of payment, as provided in the following sentence, to the prior payment

in full of all principal of, interest on and fees relating to the Loans funded

by the other Lenders in connection with any such Advance in which the

Defaulting Lender has not funded its pro rata share (such principal, interest

and fees being referred to as “Senior Loans” for the purposes of this section).

All amounts paid by the Borrower or the Guarantor and otherwise due to be

applied to the Obligations owing to such Defaulting Lender pursuant to the

terms hereof shall be distributed by the Administrative Agent to the other

Lenders in accordance with their respective pro rata shares (recalculated for

the purposes hereof to exclude the Defaulting Lender) until all Senior Loans

have been paid in full. After the Senior Loans have been paid in full equitable

adjustments will be made in connection with future payments by the Borrower to

the extent a portion of the Senior Loans had been repaid with amounts that

otherwise would have been distributed to a Defaulting Lender but for the

operation of this Section 11.15. 

This provision governs only the relationship among the Administrative

Agent, each Defaulting Lender and the other Lenders; nothing hereunder shall

limit the obligation of the Borrower to repay all Loans in accordance with the

terms of this Agreement.  The provisions

of this section shall apply and be effective regardless of whether a Default

occurs and is continuing, and notwithstanding (i) any other provision of this

Agreement to the contrary, (ii) any instruction of the Borrower as to its

desired application of payments or (iii) the suspension of such Defaulting

Lender’s right to vote on matters which are subject to the consent or approval

of the Required Lenders or all Lenders.

 

ARTICLE XII

SETOFF; RATABLE

PAYMENTS

 

12.1         Setoff.  In addition to, and without limitation of,

any rights of the Lenders under applicable law, if the Borrower becomes

insolvent, however evidenced, or any Default or Unmatured Default occurs, any

and all deposits (including all account balances, whether provisional or final

and whether or not collected or available) and any other Indebtedness at any

time held or owing by any Lender to or for the credit or account of the

Borrower may be offset and applied toward the payment of the Obligations owing

to such Lender, whether or not the Obligations, or any part hereof, shall then

be due.

 

12.2         Ratable

Payments.  If any Lender,

whether by setoff or otherwise, has payment made to it upon its Loans (other

than payments received pursuant to Sections 4.1, 4.2 or 4.4) in a greater

proportion than that received by any other Lender, such Lender agrees, promptly

upon demand, to purchase a portion of the Loans held by the other Lenders so

that after such purchase each Lender will hold its ratable proportion of Loans.

If any Lender, whether in connection with setoff or amounts which might be

subject to setoff or otherwise, receives collateral or other protection for its

Obligations or such amounts which may be subject to setoff, such Lender agrees,

promptly upon demand, to take such action necessary such that all Lenders share

in the benefits of such collateral ratably in proportion to their Loans. In

case any such payment is disturbed by legal process, or otherwise, appropriate

further adjustments shall be made.

 

ARTICLE XIII

BENEFIT OF AGREEMENT;

ASSIGNMENTS; PARTICIPATIONS

 

13.1         Successors

and Assigns.  The terms and

provisions of the Loan Documents shall be binding upon and inure to the benefit

of the Borrower and the Lenders and their respective successors and assigns,

except that (i) the Borrower shall not have the right to assign its rights or

obligations under the Loan Documents and (ii) any assignment by any Lender must

be made in compliance with Section 13.3. Notwithstanding clause (ii) of this

Section 13.1, any Lender may at any time, without the consent of the Borrower

or the Administrative Agent, assign all or any portion of its rights under this

Agreement and its Notes to a Federal Reserve Bank; provided, however, that no

such assignment shall release the

 

54

 

transferor Lender from its

obligations hereunder. The Administrative Agent may treat the payee of any Note

as the owner thereof for all purposes hereof unless and until such payee

complies with Section 13.3 in the case of an assignment thereof or, in the case

of any other transfer, a written notice of the transfer is filed with the

Administrative Agent. Any assignee or transferee of a Note agrees by acceptance

thereof to be bound by all the terms and provisions of the Loan Documents. Any

request, authority or consent of any Person, who at the time of making such

request or giving such authority or consent is the holder of any Note, shall be

conclusive and binding on any subsequent holder, transferee or assignee of such

Note or of any Note or Notes issued in exchange therefor.

 

13.2         Participations.

 

13.2.1      Permitted

Participants; Effect.  Any Lender,

in the ordinary course of its business and in accordance with applicable law,

at any time, may sell participating interests in any Loan owing to such Lender,

any Note held by such Lender, any Commitment of such Lender or any other

interest of such Lender under the Loan Documents.  Any Person to whom such a participating interest is sold is a

“Participant”. In the event of any such sale by a Lender of participating

interests to a Participant, such Lender’s obligations under the Loan Documents

shall remain unchanged, such Lender shall remain solely responsible to the

other parties hereto for the performance of such obligations, such Lender shall

remain the holder of any such Note for all purposes under the Loan Documents,

all amounts payable by the Borrower under this Agreement shall be determined as

if such Lender had not sold such participating interests, and the Borrower and

the Administrative Agent shall continue to deal solely and directly with such

Lender in connection with such Lender’s rights and obligations under the Loan

Documents.

 

13.2.2      Voting Rights.  Each Lender shall retain the sole right to

approve, without the consent of any Participant, any amendment, modification or

waiver of any provision of the Loan Documents other than any amendment,

modification or waiver with respect to any Loan or Commitment in which such

Participant has an interest which forgives principal, interest or fees or

reduces the interest rate or fees payable with respect to any such Loan or

Commitment or postpones any date fixed for any regularly–scheduled

payment of principal of, or interest or fees on, any such Loan or Commitment or

releases any guarantor of any such Loan or releases any substantial portion of

collateral, if any, securing such Loan, or changes the definition of Required

Lenders.

 

13.2.3      Benefit of Setoff.  The General Partner and the Borrower each

agrees that each Participant shall be deemed to have the right of setoff

provided in Section 12.1 in respect of its participating interest in amounts

owing under the Loan Documents to the same extent as if the amount of its

participating interest were owing directly to it as a Lender under the Loan

Documents, provided that each Lender shall retain the right of setoff provided

in Section 12.1 with respect to the amount of participating interests sold to

each Participant. The Lenders agree to share with each Participant, and each

Participant, by exercising the right of setoff provided in Section 13.1, agrees

to share with each Lender, any amount received pursuant to the exercise of its

right of setoff, such amounts to be shared in accordance with Section 12.2 as

if each Participant were a Lender.

 

13.3         Assignments.

 

13.3.1      Permitted

Assignments.  Any Lender, in the

ordinary course of its business and in accordance with applicable law, at any

time, may assign all or any  portion

(greater than or equal to $5,000,000 per assignee) of its rights and

obligations under the Loan Documents. Any Person to whom such rights and

obligations are assigned is a “Purchaser”. Such assignment shall be

substantially in the form of Exhibit H hereto or in such other form as may be

agreed to by the parties thereto. The consent of the Administrative Agent shall

be required prior to an assignment becoming effective with respect to a

Purchaser which is not a Lender or a Lender Affiliate, except no consent shall

be required if a Default exists. Such consent shall not be unreasonably

withheld.

 

55

 

13.3.2      Effect; Effective

Date.  Upon (i) delivery to the

Administrative Agent of a notice of assignment, substantially in the form

attached as Exhibit I to Exhibit H hereto (a “Notice of Assignment”), together

with any consents required by Section 13.3.1, and (ii) payment of a $3,500 fee

to the Administrative Agent for processing such assignment (unless the

assignment is to an affiliate of the Lender in which case no fee shall be

charged), such assignment shall become effective on the effective date

specified in such Notice of Assignment. The Notice of Assignment shall contain

a representation by the Purchaser to the effect that none of the consideration

used to make the purchase of the Commitment and Loans under the applicable

assignment agreement are “plan assets” as defined under ERISA and that the

rights and interests of the Purchaser in and under the Loan Documents will not

be “plan assets” under ERISA. On and after the effective date of such

assignment, such Purchaser shall for all purposes be a Lender party to this

Agreement and any other Loan Document executed by the Lenders and shall have

all the rights and obligations of a Lender under the Loan Documents, to the

same extent as if it were an original party hereto, and no further consent or

action by the Borrower, the Lenders or the Administrative Agent shall be

required to release the transferor Lender with respect to the percentage of the

Aggregate Commitment and Loans assigned to such Purchaser.  Upon the consummation of any assignment to a

Purchaser pursuant to this Section 13.3.2, the transferor Lender, the

Administrative Agent and the Borrower shall make appropriate arrangements so

that replacement Notes are issued to such transferor Lender and new Notes or,

as appropriate, replacement Notes, are issued to such Purchaser, in each case

in principal amounts reflecting their Commitment, as adjusted pursuant to such

assignment.

 

13.4         Designation of Lender to Make

Competitive Bid Loans.  Any

Lender (each a “Designating Lender”) may at any time designate one or more

Designated Lenders to fund Competitive Bid Loans which the Designating Lender

is required to fund subject to the terms of this Section 13.4 and the

provisions in Section 13.3 shall not apply to such designation.  No Lender shall be entitled to make more

than two such designations. The parties to each such designation shall execute

and deliver to the Administrative Agent, for its acceptance, a Designation

Agreement in the form of Exhibit I. 

Upon its receipt of an appropriately completed Designation Agreement

executed by a Designating Lender and a Designee representing that it is a

Designated Lender, the Administrative Agent will accept such Designation

Agreement and give prompt notice thereof to the Borrower, whereupon, from and

after the effective date specified in the Designation Agreement, the Designated

Lender shall become a party to this Agreement with a right to make Competitive

Bid Loans on behalf of its Designating Lender pursuant to Section 2.15

after the Borrower has accepted a Competitive Bid (or a portion thereof) of the

Designating Lender.  Each Designating

Lender shall serve as the agent for the Designated Lender and shall on behalf

of the Designated Lender give and receive all communications and notices and

take all actions hereunder, including without limitation votes, approvals,

waivers, consents and amendments under or relating to this Agreement or the

other Loan Documents.  Any such notice,

communications, vote approval, waiver, consent or amendment shall be signed by

the Designating Lender as agent for the Designated Lender and shall not be

signed by the Designated Lender. The Borrower, the Administrative Agent and the

Lenders may rely thereon without any requirement that the Designated Lender

sign or acknowledge the same, and without any specific designation that the

Designating Lender is signing in an agency capacity.  The parties hereto agree not to institute or join any other

person in instituting against any Designated Lender any bankruptcy,

reorganization, arrangement, insolvency or liquidation proceeding, or other

proceeding under any federal or state bankruptcy or similar law, for one year

and a day after the Facility Termination Date. This Section 13.4 shall

survive the termination of this Agreement.

 

13.5         Dissemination of Information.  The General Partner and the Borrower

authorize each Lender to disclose any and all information in such Lender’s

possession concerning the creditworthiness of the General Partner, the Borrower

and their Subsidiaries to any Participant or Purchaser or any other Person

acquiring an interest in the Loan Documents by operation of law (each a

“Transferee”) and any prospective Transferee and any swap counterparty as

prospective swap counterparty with whom a Lender has entered or is considering

entering into a transaction to hedge such Lender’s credit risk in connection

with this Facility.

 

13.6         Tax

Treatment.  If any interest in

any Loan Document is transferred to any Transferee which is organized under the

laws of any jurisdiction other than the United States or any State thereof, the

transferor Lender shall cause such Transferee, concurrently with the

effectiveness of such transfer, to comply with the provisions of Section 2.22.

 

56

 

ARTICLE XIV

NOTICES

 

14.1         Giving Notice.  Except as otherwise permitted by Section

2.17 with respect to borrowing notices, all notices and other communications

provided to any party hereto under this Agreement or any other Loan Document

shall be in writing or by telex or by facsimile and addressed or delivered to

such party at its address set forth below its signature hereto or at such other

address as may be designated by such party in a notice to the other

parties.  Any notice, if mailed and

properly addressed with postage prepaid, shall be deemed given when received;

any notice, if transmitted by telex or facsimile, shall be deemed given when

transmitted (answerback confirmed in the case of telexes).

 

14.2         Change of

Address.  The General Partner,

the Borrower, the Administrative Agent and any Lender may each change the

address for service of notice upon it by a notice in writing to the other

parties hereto.

 

ARTICLE XV

COUNTERPARTS

 

This

Agreement may be executed in any number of counterparts, all of which taken

together shall constitute one agreement, and any of the parties hereto may

execute this Agreement by signing any such counterpart.  This Agreement shall be effective when it

has been executed by the Borrower, the Administrative Agent and the Lenders and

each party has notified the Administrative Agent by telex or telephone, that it

has taken such action.

 

IN

WITNESS WHEREOF, the Borrower, the Guarantor, the Lenders and the

Administrative Agent have executed this Agreement as of the date first above

written.

 

57EXHIBIT 10

EXHIBIT 10.36

REVOLVING CREDIT AGREEMENT

DATED AS OF JULY 9, 2001

AMONG

DUKE REALTY LIMITED PARTNERSHIP,

AS BORROWER,

DUKE REALTY CORPORATION,

AS GENERAL PARTNER AND GUARANTOR,

BANK ONE, NA AS

ADMINISTRATIVE AGENT AND LENDER,

BANC ONE CAPITAL MARKETS, INC.,

AS SOLE LEAD ARRANGER AND BOOK RUNNER,

WACHOVIA BANK, NA, AS SYNDICATION AGENT

BANK OF AMERICA, NA, AS CO-DOCUMENTATION AGENT

WELLS FARGO BANK, NATIONAL ASSOCIATION,

AS CO-DOCUMENTATION AGENT

THE CHASE MANHATTAN BANK, AS CO-AGENT

SUNTRUST BANK, AS CO-AGENT

AND

THE SEVERAL OTHER LENDERS

FROM TIME TO TIME PARTIES HERETO

TABLE OF CONTENTS

 

	

  RECITALS

  
	

  ARTICLE I DEFINITIONS

  
	

  ARTICLE II THE CREDIT

  
	

  2.1.Commitment.

  
	

  2.2.Final

  Principal Payment.

  
	

  2.3.Loans.

  
	

  2.4.Applicable

  Margins.

  
	

  2.5.Facility

  Fee.

  
	

  2.6.Upfront

  Fee.

  
	

  2.7.Conversion And

  Extension Fees.

  
	

  2.8.Minimum Amount

  Of Each Advance.

  
	

  2.9.Optional

  Principal Payments.

  
	

  2.10.Method

  Of Selecting Types And Interest Periods For New Advances.

  
	

  2.11.Conversion

  And Continuation Of Outstanding Advances.

  
	

  2.12.Changes In

  Interest Rate, Etc.

  
	

  2.13.Rates

  Applicable After Default.

  
	

  2.14.INTENTIONALLY

  OMITTED

  
	

  2.15.Voluntary

  Reduction in Aggregate Commitment.

  
	

  2.16.Method

  Of Payment.

  
	

  2.17.Notes; Telephonic

  Notices.

  
	

  2.18.Interest

  Payment Dates; Interest And Fee Basis.

  
	

  2.19.Notification

  Of Advances, Interest Rates And Prepayments.

  
	

  2.20.Lending

  Installations.

  
	

  2.21.Non–Receipt

  Of Funds By The Administrative Agent.

  
	

  2.22.Withholding Tax Exemption.

  
	

  2.23.Usury

  
	

  2.24 Applications

  of Moneys Received

  
	

  2.25.Conversion

  And Extension Options.

  

 

 

	

  ARTICLE III

  INTENTIONALLY OMITTED

  
	

  ARTICLE IV CHANGE

  IN CIRCUMSTANCES

  
	

  4.1.Yield

  Protection.

  
	

  4.2.Changes

  In Capital Adequacy Regulations.

  
	

  4.3.Availability

  Of Libor Advances.

  
	

  4.4.Funding

  Indemnification.

  
	

  4.5.Lender

  Statements; Survival Of Indemnity.

  
	

  ARTICLE V CONDITIONS

  PRECEDENT

  
	

  5.1.Effective

  Date.

  
	

  5.2.Each

  Advance.

  
	

  ARTICLE VI

  REPRESENTATIONS AND WARRANTIES

  
	

  6.1.Existence.

  
	

  6.2.Authorization and

  Validity.

  
	

  6.3.No Conflict;

  Government Consent.

  
	

  6.4.Financial

  Statements; Material Adverse Change.

  
	

  6.5.Taxes.

  
	

  6.6.Litigation

  and Guarantee Obligations.

  
	

  6.7.Subsidiaries.

  
	

  6.8.ERISA.

  
	

  6.9.Accuracy of

  Information.

  
	

  6.10.Margin

  Stock.

  
	

  6.11.Material Agreements.

  
	

  6.12.Compliance With Laws.

  
	

  6.13.Ownership of

  Properties.

  
	

  6.14.Investment Company

  Act.

  
	

  6.15.Public

  Utility Holding Company Act.

  
	

  6.16.Solvency.

  
	

  6.17.Insurance.

  
	

  6.18.REIT

  Status.

  
	

  6.19.Environmental Matters.

  
	

  6.20.Unencumbered Assets.

  
	

  ARTICLE VII COVENANTS

  
	

  7.1.Financial Reporting.

  
	

  7.2.Use

  of Proceeds.

  
	

  7.3.Notice

  of Default.

  
	

  7.4.Conduct of Business.

  
	

  7.5.Taxes.

  
	

  7.6.Insurance.

  
	

  7.7.Compliance

  with Laws.

  
	

  7.8.Maintenance of

  Properties.

  
	

  7.9.Inspection.

  
	

  7.10.Maintenance of Status.

  
	

  7.11.Dividends.

  
	

  7.12.Merger; Sale of

  Assets.

  
	

  7.13.General

  Partner’s Ownership and Control of Borrower.

  
	

  7.14.Sale and Leaseback.

  
	

  7.15.Liens.

  
	

  7.16.Affiliates.

  
	

  7.17.Interest Rate Hedging.

  
	

  7.18.Variable

  Interest Indebtedness.

  
	

  7.19.Consolidated Net

  Worth.

  
	

  7.20.Indebtedness

  and Cash Flow Covenants.

  

 

2

 

	

  7.21.Environmental Matters.

  
	

  7.22.Control of

  the General Partner.

  
	

  7.23.Borrower’s

  Partnership Agreement.

  
	

  7.24.General Partner’s

  Assets.

  
	

  7.25.Notice of Rating

  Change.

  
	

  7.26.Delivery

  of Subsidiary Guaranties.

  
	

   

  
	

  ARTICLE VIII DEFAULTS

  
	

   

  
	

  ARTICLE

  IX ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

  
	

  9.1.Acceleration.

  
	

  9.2.Amendments.

  
	

  9.3.Preservation of Rights.

  
	

  ARTICLE X GENERAL

  PROVISIONS

  
	

  10.1.Survival of

  Representations.

  
	

  10.2.Governmental

  Regulation.

  
	

  10.3.Taxes.

  
	

  10.4.Headings.

  
	

  10.5.Entire

  Agreement.

  
	

  10.6.Several

  Obligations; Benefits of this Agreement.

  
	

  10.7.Expenses;

  Indemnification.

  
	

  10.8.Numbers of Documents.

  
	

  10.9.Accounting.

  
	

  10.10.Severability of

  Provisions.

  
	

  10.11.Nonliability of

  Lenders.

  
	

  10.12.Publicity.

  
	

  10.13.CHOICE

  OF LAW.

  
	

  10.14.CONSENT TO

  JURISDICTION.

  
	

  10.15.WAIVER OF JURY TRIAL.

  
	

  10.16.Agent

  Responsibilities.

  
	

  ARTICLE

  XI THE ADMINISTRATIVE AGENT AND

  AGREEMENTS

  AMONG LENDERS

  
	

  11.1.Appointment.

  
	

  11.2.Powers.

  
	

  11.3.General

  Immunity.

  
	

  11.4.No

  Responsibility for Loans, Recitals, etc.

  
	

  11.5.Action on

  Instructions of Lenders.

  
	

  11.6.Employment

  of Agents and Counsel.

  
	

  11.7.Reliance on

  Documents; Counsel.

  
	

  11.8.Administrative

  Agent’s Reimbursement and Indemnification.

  
	

  11.9.Rights as a Lender.

  
	

  11.10.Lender Credit

  Decision.

  
	

  11.11.Successor

  Administrative Agent.

  
	

  11.12.Notice of Defaults.

  
	

  11.13.Requests for

  Approval.

  
	

  11.14.Copies of Documents.

  
	

  11.15.Defaulting Lenders.

  
	

  ARTICLE XII SETOFF;

  RATABLE PAYMENTS

  
	

  12.1.Setoff.

  
	

  12.2.Ratable

  Payments.

  

 

3

 

	

  ARTICLE

  XIII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

  
	

  13.1.Successors and

  Assigns.

  
	

  13.2.Participations.

  
	

  13.3.Assignments.

  
	

  13.4.INTENTIONALLY OMITTED

  
	

  13.5.Dissemination

  of Information.

  
	

  13.6.Tax

  Treatment.

  
	

  ARTICLE XIV NOTICES

  
	

  14.1.Giving

  Notice.

  
	

  14.2.Change

  of Address.

  
	

  ARTICLE XV COUNTERPARTS

  

 

REVOLVING CREDIT AGREEMENT

This Revolving Credit Agreement dated as of

July 9, 2001 is among Duke Realty Limited Partnership, an Indiana limited

partnership (the “Borrower”), Duke Realty Corporation, an Indiana corporation

(the “General Partner” and the “Guarantor”), Banc One Capital Markets, Inc.

(“BOCM”) (the “Lead Arranger” and “Sole Book Runner”), Bank One, NA (“Bank

One”) as a Lender and not individually, but as “Administrative Agent”, Wachovia

Bank, NA (“Wachovia”) as Syndication Agent and as Lender, Bank of America, NA,

(“BOA”) as Co-Documentation Agent and Lender, Wells Fargo Bank, National

Association (“Wells Fargo”) as Co-Documentation Agent and Lender, The Chase

Manhattan Bank, (“Chase”), as Co-Agent and Lender, SunTrust Bank (“SunTrust”)

as Co-Agent and Lender and the several banks, financial institutions and other

entities from time to time parties to this Agreement (collectively, with Bank

One, Wachovia, BOA, Wells Fargo, Chase and SunTrust, the “Lenders”) (this “Agreement”).

 

RECITALS

A.The Borrower is

primarily engaged in the business of purchasing, developing, owning, operating,

leasing and managing office, industrial and retail properties.

 

B.The General

Partner, the Borrower’s sole general

partner, is listed on the New York Stock Exchange and is qualified as a real

estate investment trust.

 

C.The Borrower and

the General Partner have requested that the Lenders make loans available to the

Borrower in the aggregate amount of up to $150,000,000 (the “Facility”) and that the Administrative Agent act as

administrative agent for the Lenders. 

The Administrative Agent and the Lenders have agreed to do so.

 

NOW, THEREFORE, in

consideration of the mutual covenants and agreements herein contained, the

parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

As used in this

Agreement:

 

“ABR Advance” means

an Advance which bears interest at the ABR Rate.

 

“ABR Applicable

Margin” means, as of any date, the Applicable Margin in effect on such date

with respect to ABR Advances and ABR Loans.

 

“ABR Loan” means a

Loan which bears interest at the ABR Rate.

 

“ABR Rate” means,

for any day, a rate per annum equal to (i) the Alternate Base Rate for such day

plus (ii) ABR Applicable Margin for such day, in each case changing when

and as the Prime Rate changes.

 

“Adjusted EBITDA”

means EBITDA less Capital Expenditure Reserve Amount.

 

4

 

“Adjusted Prime

Rate” means, for any day, a rate per annum equal to (i) the Prime Rate for such

day plus (ii) Prime Applicable Margin for such day, in each case changing

when and as the Prime Rate changes.

 

“Administrative

Agent” means Bank One, NA in its capacity as contractual representative for the

Lenders pursuant to Article XI, and not in its individual capacity as a Lender,

and any successor Administrative Agent appointed pursuant to Article XI.

 

“Advance” means a

borrowing hereunder consisting of the aggregate amount of the several Loans

made by the Lenders to the Borrower of the same Type and, in the case of LIBOR

Advances, for the same LIBOR Interest Period.

 

“Affiliate” of any

Person means any other Person directly or indirectly controlling, controlled by

or under common control with such Person. 

A Person shall be deemed to control another Person if the controlling

Person owns 10% or more of any class of voting securities (or other ownership

interests) of the controlled Person or possesses, directly or indirectly, the

power to direct or cause the direction of the management or policies of the

controlled Person, whether through ownership of stock, by contract or

otherwise.

 

“Aggregate

Commitment” means the aggregate of the Commitments of all the Lenders, which

initially shall be $150,000,000.

 

“Agreement” means

this Revolving Credit Agreement, as it may be amended or modified

 

“Alternate Base

Rate” means, for any day, a rate of interest per annum equal to the higher of

(i) the Prime Rate for such day and (ii) the sum of the Federal Funds Effective

Rate for such day plus 1/2% per annum.

 

“Applicable Margin”

means the applicable margin set forth in the table in Exhibit A used in

calculating the interest rate applicable to the various Types of Advances which

shall vary from time to time in accordance with Borrower’s and Guarantor’s long

term unsecured debt ratings.

 

“Arranger” means

BOCM.

 

“Article” means an

article of this Agreement unless another document is specifically referenced.

 

“Assets Under

Development” means, as of any date of determination, any Project owned by the

Borrower or any of its Subsidiaries on which the construction of new

income-producing building or buildings has been commenced and is continuing,

both such land and improvements under construction to be valued for purposes of

this Agreement at then-current book value, as determined in accordance with

GAAP.

 

“Authorized

Officer” means any of Darell E. Zink, Dennis D. Oklak, Gary Burk, Matthew A.

Cohoat, Michael D. Pitts, Howard Feinsand or Thomas C. Hefner acting singly.

 

“Borrower” means

Duke Realty Limited Partnership, an Indiana limited partnership, and its

successors and permitted assigns.

 

“Borrowing Date”

means a date on which an Advance is made hereunder.

 

“Borrowing Notice”

is defined in Section 2.10.

 

“Business Day”

means (i) with respect to any borrowing, payment or rate selection of LIBOR

Advances, a day (other than a Saturday or Sunday) on which banks generally are

open in Chicago, Illinois, and San Francisco, California for the conduct of

substantially all of their commercial lending activities and on which dealings

in United States dollars are carried on in the London interbank market and (ii)

for all other purposes, a day (other than a Saturday or Sunday) on which banks

generally are open in Chicago, Illinois and San Francisco, California for the

conduct of substantially all of their commercial lending activities.

 

5

 

“Capital

Expenditure Reserve Amount” means, for any quarter, the greater of (i) 6% of

EBITDA for such quarter or (ii) the average quarterly capital expenditures,

leasing commissions and tenant improvement costs except for leasing commissions

and tenant improvement costs associated with the initial leasing of space not

previously occupied (i.e., first generation space) for the four most recently

completed quarters.

 

“Capital Stock”

means any and all shares, interests, participations or other equivalents

(however designated) of capital stock of a corporation, any and all equivalent

ownership interests in a Person which is not a corporation and any and all

warrants or options to purchase any of the foregoing.

 

“Capitalized Lease”

of a Person means any lease of Property imposing obligations on such Person, as

lessee thereunder, which are required in accordance with GAAP to be capitalized

on a balance sheet of such Person.

 

“Capitalized Lease

Obligations” of a Person means the amount of the obligations of such Person

under Capitalized Leases which would be shown as a liability on a balance sheet

of such Person prepared in accordance with GAAP.

 

“Cash Equivalents”

means, as of any date, (i) securities issued or directly and fully guaranteed

or insured by the United States Government or any agency or instrumentality

thereof having maturities of not more than one year from such date, (ii) time

deposits and certificates of deposit having maturities of not more than one

year from such date and issued by any domestic commercial bank having (A)

senior long-term unsecured debt rated at least A or the equivalent thereof by

S&P, A or the equivalent thereof by Duff & Phelps or A2 or the

equivalent thereof by Moody’s and (B) capital and surplus in excess of

$500,000,000, and (iii) commercial paper rated at least A-1 or the

equivalent thereof by S&P, A-1 or the equivalent thereof by Fitch or P-1 or

the equivalent thereof by Moody’s and in any such case maturing within 90 days

from such date.

 

“Closing Date”

means the date of this Agreement.

 

“Code” means the

Internal Revenue Code of 1986, as amended, reformed or otherwise modified from

time to time.

 

“Commitment” means,

for each Lender, the obligation of such Lender to make Loans not exceeding the

amount set forth opposite its signature below or as set forth in any Notice of

Assignment relating to any assignment that has become effective pursuant to

Section 13.3.2, as such amount may be modified from time to time pursuant to

the terms hereof.

 

“Condemnation” is

defined in Section 8.9.

 

“Consent Notice” is

defined in Section 2.25.

 

“Consolidated Net

Income” means, for any period, consolidated net income (or loss) of the General

Partner, the Borrower and their Subsidiaries for such period determined on a

consolidated basis in accordance with GAAP; provided that there shall be

excluded (a) the income (or deficit) of any other Person accrued prior to

the date it becomes a Subsidiary of the General Partner or the Borrower or is

merged into or consolidated with the General Partner, the Borrower or any of

their Subsidiaries and (b) the undistributed earnings of any Subsidiary to

the extent that the declaration or payment of dividends or similar distributions

by such Subsidiary is not at the time permitted by the terms of any contractual

obligation or requirement of law applicable to such Subsidiary.

 

“Consolidated Net

Worth” means, as of any date of determination, an amount equal to

(a) Market Capitalization as of such date minus (b) Total Liabilities

as of such date.

 

“Consolidated

Secured Indebtedness” means, as of any date of determination, the sum of

(a) the aggregate principal amount of all Indebtedness of the General

Partner, the Borrower and their respective Subsidiaries outstanding at such

date which is secured by a Lien on any asset of the General Partner, the

Borrower or any of their respective Subsidiaries and (b) the excess, if

any, of (i) the aggregate principal amount of all Unsecured Indebtedness

of the Subsidiaries of the General

 

6

 

Partner or the

Borrower over (ii) $5,000,000, determined on a consolidated basis in

accordance with GAAP and (c) the General Partner’s and Borrower’s pro rata

share of any secured debt in Investment Affiliates.

 

“Consolidated

Senior Unsecured Indebtedness” means, as of any date of determination, the sum

of the aggregate principal amount of all Indebtedness of the General Partner,

the Borrower and their Subsidiaries outstanding at such date, which does not

constitute Consolidated Secured Indebtedness, but excluding Indebtedness which

is contractually subordinated to the Indebtedness of the General Partner, the

Borrower and their Subsidiaries under the Loan Documents on customary terms

acceptable to the Administrative Agent.

 

“Consolidated Total

Indebtedness” means, as of any date of determination, all Indebtedness of the

General Partner, the Borrower and their respective Subsidiaries outstanding at

such date, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated

Unsecured Indebtedness” means, as of any date of determination, the sum of the

aggregate principal amount of all Indebtedness of the General Partner, the

Borrower and their Subsidiaries outstanding at such date, which does not

constitute Consolidated Secured Indebtedness.

 

“Continuing

Lenders” is defined in Section 2.25.

 

“Controlled Group”

means all members of a controlled group of corporations and all trades or

businesses (whether or not incorporated) under common control which, together

with the General Partner, the Borrower or any of their Subsidiaries, are

treated as a single employer under Section 414 of the Code.

 

“Conversion/Continuation

Notice” is defined in Section 2.11.

 

“Debt Service” means,

for any fiscal quarter, Interest Expense plus scheduled principal  amortization payments (excluding balloon

payments), provided that in the case of amortization payments made less

frequently than quarterly, 25% of the aggregate amortization payments for the

fiscal year including such fiscal quarter shall be included in Debt Service for

such quarter.

 

“Default” means an

event of default described in Article VIII.

 

“Defaulting Lender”

means any Lender which fails or refuses to perform its obligations under this

Agreement within the time period specified for performance of such obligation,

or, if no time frame is specified, if such failure or refusal continues for a

period of five Business Days after written notice from the Administrative

Agent; provided that if such Lender cures such failure or refusal, such Lender

shall cease to be a Defaulting Lender.

 

“EBITDA” means

operating income before extraordinary items, equity in earnings of Investment

Affiliates and minority interest in earnings, as reported by the General

Partner, the Borrower and their Subsidiaries in accordance with GAAP, plus

(i) Interest Expense (excluding the General Partner’s and the Borrower’s

pro-rata share of interest expense of Investment Affiliates), depreciation,

amortization and income tax (if any) expense plus (ii) (without

redundancy) the General Partner’s and the Borrower’s pro rata share of Net

Operating Income from Investment Affiliates.

 

“Environmental

Laws” means any and all foreign, Federal, state, local or municipal laws, rules,

orders, regulations, statutes, ordinances, codes, decrees, requirements of any

Governmental Authority or other Requirements of Law (including common law)

regulating, relating to or imposing liability or standards of conduct

concerning protection of human health or the environment, as now or may at any

time hereafter be in effect, in each case to the extent the foregoing are

applicable to the General Partner, the Borrower or any Subsidiary or any of

their respective assets or Projects.

 

“Equity Value” means

Net Operating Income capitalized at a 9.5% rate less any Indebtedness or, in

the case of assets acquired after the closing of the Facility, the purchase

price less any Indebtedness attributable to such asset.

 

7

 

“ERISA” means the

Employee Retirement Income Security Act of 1974, as amended from time to time,

and any rule or regulation issued thereunder.

 

“Excluded Taxes”

means, in the case of each Lender or applicable Lending Installation and the

Administrative Agent, taxes imposed on its overall income or net worth, and

franchise taxes imposed on it, by (i) the jurisdiction under the laws of which

such Lender or the Administrative Agent is incorporated or organized or (ii)

the jurisdiction in which the Administrative Agent’s or such Lender’s principal

executive office or such Lender’s applicable Lending Installation is located.

 

“Extension Request”

is defined in Section 2.24.

 

“Facility”  means the meaning given to such word in

Recital D.

 

“Facility Fee” is

defined in Section 2.5.

 

“Facility

Termination Date” means July 8, 2002 subject to extension to July 7, 2003

pursuant to Section 2.25 of this Agreement.

 

“Federal Funds

Effective Rate” means, for any day, an interest 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 for such day (or, if such day is not a Business Day, for the

immediately preceding Business Day) by the Federal Reserve Bank of New York,

or, if such rate is not so published for any day which is a Business Day, the

average of the quotations at approximately 10 a.m. (Chicago time) on such day

on such transactions received by the Administrative Agent from three Federal

funds brokers of recognized standing selected by the Administrative Agent in

its sole discretion.

 

“Fitch” means

Fitch, Inc., and its successors.

 

“Fixed Charges”

means, for any fiscal quarter, Debt Service for such quarter, plus Preferred

Dividends.

 

“Funds From

Operations” means, for any period, Consolidated Net Income for such period

without giving effect to depreciation and amortization, gains or losses from

extraordinary items and gains or losses on sales of previously depreciated real

estate.

 

“GAAP” means

generally accepted accounting principles in the United States of America as in

effect from time to time, applied in a manner consistent with that used in

preparing the financial statements referred to in Section 7.1.

“General Partner”

means Duke Realty Corporation, an Indiana corporation, the sole general partner

of the Borrower, and its successors and assigns.

 

“Governmental

Authority” means any nation or government, any state or other political

subdivision thereof and any entity exercising executive, legislative, judicial,

regulatory or administrative functions of or pertaining to government.

 

“Guarantee

Obligation” means, as to any Person (the “guaranteeing person”), any obligation

(determined without duplication) of (a) the guaranteeing person or

(b) another Person (including, without limitation, any bank under any

Letter of Credit) to induce the creation of which the guaranteeing person has

issued a reimbursement, counter-indemnity or similar obligation, in either case

guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or

other obligations (the “primary obligations”) of any other third Person (the

“primary obligor”) in any manner, whether directly or indirectly, including,

without limitation, any obligation of the guaranteeing person, whether or not

contingent, (i) to purchase any such primary obligation or any property

constituting direct or indirect security therefor, (ii) to advance or

supply funds (1) for the purchase or payment of any such primary obligation

or (2) to maintain working capital or equity

 

8

 

capital of the

primary obligor or otherwise to maintain the net worth or solvency of the

primary obligor, (iii) to purchase property, securities or services

primarily for the purpose of assuring the owner of any such primary obligation

of the ability of the primary obligor to make payment of such primary

obligation or (iv) otherwise to assure or hold harmless the owner of any

such primary obligation against loss in respect thereof; provided, however,

that the term Guarantee Obligation shall not include endorsements of

instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of

any guaranteeing person shall be deemed to be the maximum stated amount of the

primary obligation relating to such Guarantee Obligation (or, if less, the

maximum stated liability set forth in the instrument embodying such Guarantee

Obligation), provided, that in the absence of any such stated amount or stated

liability, the amount of such Guarantee Obligation shall be such guaranteeing

person’s maximum reasonably anticipated liability in respect thereof as

determined by the Borrower in good faith. Notwithstanding the foregoing, the

term Guarantee Obligation shall not include a Guarantee by Borrower or General

Partner of Indebtedness of an Investment Affiliate (“Investment Affiliate

Debt”) if all of the following conditions are met:

 

(a)           The

Guarantee provided by the Borrower and/or General Partner is limited to an

amount not greater than 50% of the value of the properties securing the

Investment Affiliate Debt (computed by capitalizing the Property Operating

Income from such properties at a rate of 9.5%), and

(b)           The

Investment Affiliate Debt is for a stabilized property (defined for purposes of

this test as a Property that is at least 90% occupied or a Property that has

been in operation for more than a year) or pool of stabilized properties, The

amount of the Investment Affiliate Debt that is being guaranteed (together with

any other Investment Affiliate Debt of such Investment Affiliate that is

secured by the same collateral that secures the Investment Affiliate Debt being

guarantied) is not more than 50% of the value of the properties securing such

Investment Affiliate Debt (computed by capitalizing the Property Operating

Income from such properties at a rate of 9.5%), and,

(c)           The aggregate amount excluded under

Guarantee Obligations does not exceed 2.5% of Market Capitalization.

 

“Guarantor” means

the General Partner in its capacity as the guarantor under the  Guaranty.

 

“Guaranty” means

that certain Guaranty of even date herewith executed by the Guarantor in favor

of the Administrative Agent, for the ratable benefit of the Lenders, as it may

be amended or modified and in effect from time to time.

 

“Indebtedness” of

any Person at any date means without duplication, (a) all indebtedness of

such Person for borrowed money, (b) all obligations of such Person for the

deferred purchase price of property or services (other than current trade

liabilities incurred in the ordinary course of business and payable in

accordance with customary practices), to the extent such obligations constitute

indebtedness for the purposes of GAAP, (c) any other indebtedness of such

Person which is evidenced by a note, bond, debenture or similar instrument,

(d) all Capitalized Lease Obligations, (e) all obligations of such

Person in respect of acceptances issued or created for the account of such

Person, (f) all Guarantee Obligations of such Person (excluding in any

calculation of consolidated indebtedness of the Borrower, Guarantee Obligations

of the Borrower in respect of primary obligations of any Subsidiary), (g) all

reimbursement obligations of such Person for letters of credit and other

contingent liabilities to the extent not otherwise included under another

clause of this definition, (h) all liabilities secured by any lien (other

than liens for taxes not yet due and payable) on any property owned by such

Person even though such Person has not assumed or otherwise become liable for

the payment thereof, (i) any repurchase obligation or liability of such

Person or any of its Subsidiaries with respect to accounts or notes receivable

sold by such Person or any of its Subsidiaries, (j) any other transaction

which is the functional equivalent of or takes the place of borrowing but which

does not constitute a liability on the consolidated balance sheet of such

Person, (k) such Person’s pro rata share of debt in Investment Affiliates

and (l) any loans where such Person is liable as a general partner.

 

“Indemnified

Parties” means the Lead Arranger and the Administrative Agent.

 

“Interest Expense”

means all interest expense of the General Partner, the Borrower and their

Subsidiaries determined in accordance with GAAP plus (i) the General

Partner’s and the Borrower’s pro rata share of interest expense in Investment

Affiliates, (ii) capitalized interest not covered by an interest reserve

from a loan facility, (iii) 100% of any accrued, or paid interest incurred

on any obligation for which the Borrower or the General Partner is wholly or

partially liable under

 

9

 

repayment, interest

carry, or performance guarantees, or other relevant liabilities, provided that

no expense shall be included more than once in such calculation even if it

falls within more than one of the foregoing categories.

 

“Investment” of a

Person means any loan, advance (other than commission, travel and similar

advances to officers and employees made in the ordinary course of business),

extension of credit (other than accounts receivable arising in the ordinary

course of business on terms customary in the trade), deposit account or

contribution of capital by such Person to any other Person or any investment

in, or purchase or other acquisition of, the stock, partnership interests,

notes, debentures or other securities of any other Person made by such Person.

 

“Investment

Affiliate” means any Person in which the General Partner or the Borrower,

directly or indirectly, has an ownership interest, whose financial results are

not consolidated under GAAP with the financial results of the General Partner

or the Borrower on the consolidated financial statements of the General Partner

or the Borrower.

 

“Lead Agents” means

Bank One, Wachovia, BOA and Wells Fargo.

 

“Lead Arranger”

means  BOCM.

 

“Lender Affiliate”

means, (a) with respect to any Lender, (i) an Affiliate of such Lender or (ii)

any entity (whether a corporation, partnership, trust or otherwise) that is

engaged in making, purchasing, holding or otherwise investing in bank loans and

similar extensions of credit in the ordinary course of its business and is

administered or managed by a Lender or an Affiliate of such Lender and (b) with

respect to any Lender that is a fund which invests in bank loans and similar

extensions of credit, any other fund that invests in bank loans and similar

extensions of credit and is managed by the same investment advisor as such

Lender or by an Affiliate of such investment advisor.

 

“Lenders” means the

lending institutions listed on the signature pages of this Agreement, their

respective successors and assigns and any other lending institutions that

subsequently become parties to this Agreement pursuant to Section 13.3.

 

“Lending

Installation” means, with respect to a Lender, any office, branch, subsidiary

or affiliate of such Lender.

 

“Letter of Credit”

of a Person means a letter of credit or similar instrument which is issued upon

the application of such Person or upon which such Person is an account party or

for which such Person is in any way liable.

 

“LIBOR Advance”

means an Advance which bears interest at a LIBOR Rate.

 

“LIBOR Applicable

Margin” means, as of any date with respect to any LIBOR Interest Period, the

Applicable Margin in effect for such LIBOR Interest Period as determined in

accordance with Section 2.4 hereof.

 

“LIBOR Base Rate”

means, with respect to a LIBOR Advance for the relevant LIBOR Interest Period,

the offered rate for the period equal to or next greater than the LIBOR

Interest Period for U.S. Dollar deposits of not less than $1,000,000.00 as of

11:00 A.M. City of London, England time two Business Days prior to the first

day of the LIBOR Interest Period as shown on the display designated as “British

Bankers Association Interest Settlement Rates” on Reuters for the purpose of

displaying such rate.  In the event that

such rate is not available on Reuters, then such offered rate shall be

otherwise independently determined by Administrative Agent from an alternate,

substantially similar independent source available to Administrative Agent or

shall be calculated by Administrative Agent by a substantially similar

methodology as that theretofore used to determine such offered rate.

 

“LIBOR Interest

Period” means with respect to a LIBOR Advance, a period of one, two, three or

six months commencing on a Business Day selected by the Borrower pursuant to

this Agreement.  Such LIBOR Interest

Period shall end on (but exclude) the day which corresponds numerically to such

date one, two, three or six months thereafter, provided, however, that if there

is no such numerically corresponding day in such next, second, third or sixth

succeeding month, such LIBOR Interest Period shall end on the last Business Day

of such next, second, third or sixth succeeding month.  If a LIBOR Interest Period would otherwise

end on a day which is not a Business Day, such LIBOR Interest Period shall end

on the next succeeding Business Day, provided, however, that if said next

succeeding Business Day falls in a new calendar

 

10

 

month, such LIBOR

Interest Period shall end on the immediately preceding Business Day.  In no event shall a LIBOR Interest Period

extend beyond the then current Facility Termination Date.

 

“LIBOR Loan” means

a Loan which bears interest at a LIBOR Rate.

 

“LIBOR Rate” means,

with respect to a LIBOR Advance for the relevant LIBOR Interest Period, the sum

of (i) the quotient of (a) the LIBOR Base Rate applicable to such LIBOR

Interest Period, divided by (b) one minus the Reserve Requirement (expressed as

a decimal) applicable to such LIBOR Interest Period, plus (ii) the LIBOR

Applicable Margin in effect on the day that such LIBOR Base Rate was

determined.  The LIBOR Rate shall be

rounded to the next higher multiple of 1/100 of 1% if the rate is not a

multiple of 1/16 of 1% or 1/100 of 1%.

 

“Lien” means any

lien (statutory or other), mortgage, pledge, hypothecation, assignment, deposit

arrangement, encumbrance or preference, priority or other security agreement or

preferential arrangement of any kind or nature whatsoever (including, without

limitation, the interest of a vendor or lessor under any conditional sale,

Capitalized Lease or other title retention agreement).

 

“Loan” means, with

respect to a Lender, such Lender’s portion of any Advance.

 

“Loan Documents”

means this Agreement, the Notes, the Guaranty, and any other document from time

to time evidencing or securing indebtedness or obligations incurred by the

General Partner or the Borrower under this Agreement, as any of the foregoing

may be amended or modified from time to time.

 

“Market

Capitalization” means (a) Total Property Operating Income capitalized at

9.5%, plus (b) ”earnings from service operations” capitalized at 20%, plus

(c) 50% of Assets Under Development (75% for a property that has signed

leases for 75% or more of the square feet of the space), plus (d) the

amount of any cash equivalents, excluding tenant security and other restricted

deposits, plus (e) the lower of book value or market value of land not

under development.

 

“Material Adverse

Effect” means a material adverse effect on (i) the business, Property,

condition (financial or otherwise), results of operations, or prospects of the

General Partner, the Borrower and their Subsidiaries taken as a whole, (ii) the

ability of the General Partner or the Borrower to perform their obligations

under the Loan Documents, or (iii) the validity or enforceability of any of the

Loan Documents or the rights or remedies of the Administrative Agent or the

Lenders thereunder.

 

“Materials of

Environmental Concern” means any gasoline or petroleum (including crude oil or

any fraction thereof) or petroleum products or any hazardous or toxic

substances, materials or wastes, defined or regulated as such in or under any

Environmental Law, including, without limitation, asbestos, polychlorinated

biphenyls and urea-formaldehyde insulation.

 

“Maximum Legal

Rate” means the maximum nonusurious interest rate, if any, that at any time or

from time to time may be contracted for, taken, reserved, charged or received

on the indebtedness evidenced by the Note and as provided for herein or in the

Note or other Loan Documents, under the laws of such state or states whose laws

are held by any court of competent jurisdiction to govern the interest rate

provisions of the Loan.

 

“Moody’s” means

Moody’s Investors Service, Inc. and its successors.

 

“Multiemployer

Plan” means a Plan maintained pursuant to a collective bargaining agreement or

any other arrangement to which the General Partner, the Borrower or any member

of the Controlled Group is a party to which more than one employer is obligated

to make contributions.

 

“Net Operating

Income” means, with respect to any Investment Affiliate or Subsidiary, for any

period, such entity’s operating income minus all operating expenses (as

determined in accordance with GAAP) incurred in connection with and directly

attributable to the generation of such operating income but excluding interest

expense and other debt service charges and any non–cash charges such as

depreciation or amortization of financing costs.

 

11

 

“Note” means a

promissory note, in substantially the form of Exhibit B-1 hereto, duly executed

by the Borrower and payable to the order of a Lender in the amount of its

Commitment, including any amendment, modification, renewal or replacement of

such promissory note.

 

“Notice of

Assignment” is defined in Section 13.3.2.

 

“Obligations” means

the Advances and all accrued and unpaid fees and all other obligations of

Borrower to the Administrative Agent or the Lenders arising under this

Agreement or any of the other Loan Documents.

 

“Other Taxes” is

defined in Section 4.5(ii).

 

“Participants” is

defined in Section 13.2.1.

 

“Payment Date”

means, with respect to the payment of interest accrued on any Advance, the

first day of each calendar month.

 

“PBGC” means the

Pension Benefit Guaranty Corporation, or any successor thereto.

 

“Percentage” means

for each Lender the ratio that such Lender’s Commitment bears to the Aggregate

Commitment, expressed as a percentage.

 

“Permitted Liens”

are defined in Section 7.15.

 

“Person” means any

natural person, corporation, firm, joint venture, partnership, association,

enterprise, trust or other entity or organization, or any government or

political subdivision or any agency, department or instrumentality thereof.

 

“Plan” means an

employee pension benefit plan which is covered by Title IV of ERISA or subject

to the minimum funding standards under Section 412 of the Code as to which the

General Partner, the Borrower or any member of the Controlled Group may have

any liability.

 

“Preferred

Dividends” shall mean, for any period, without duplication of such amounts as

constitute intercompany debts or distributions, the sum of (a) dividends or

distributions due and payable or accrued during such period on preferred stock

issued by General Partner or a Subsidiary, and (b) distributions which are the

functional equivalent of preferred dividends (i.e., which the issuer is

required to make prior to distributions on another class or other classes of

partnership interests) and which are due and payable or accrued during such

period on preferred partnership interests issued by Borrower or any other

Subsidiary.

 

“Prime Advance”

means an Advance which bears interest at the Adjusted Prime Rate.

 

“Prime Applicable

Margin” means, as of any date, the Applicable Margin in effect on such date

with respect to Prime Advances and Prime Loans.

 

“Prime Loan” means

a Loan which bears interest at the Adjusted Prime Rate.

 

“Prime Rate” means

a rate per annum equal to the prime rate of interest announced from time to

time by Bank One or its parent (which is not necessarily the lowest rate

charged to any customer), changing when and as such prime rate changes.

 

“Project” means any

real estate asset owned or operated by the Borrower or any Subsidiary and

operated or intended to be operated as an office, industrial or retail

property.

 

“Property” of a

Person means any and all property, whether real, personal, tangible,

intangible, or mixed, of such Person, or other assets owned, leased or operated

by such Person.

 

12

 

“Property Operating

Income” means, with respect to any Project or other real estate asset, for any

period, earnings from rental operations (computed in accordance with GAAP)

attributable to such Project or other real estate asset plus depreciation,

amortization and interest expense for such period, and, if such period is less

than a year, adjusted by straight lining various ordinary operating expenses

which are payable less frequently than once during every such period (e.g. real

estate taxes and insurance).

 

“Purchasers” is

defined in Section 13.3.1.

 

“Regulation U”

means Regulation U of the Board of Governors of the Federal Reserve System as

from time to time in effect and any successor or other regulation or official

interpretation of said Board of Governors relating to the extension of credit

by banks for the purpose of purchasing or carrying margin stocks applicable to

member banks of the Federal Reserve System.

 

“Reportable Event”

means a reportable event as defined in Section 4043 of ERISA and the

regulations issued under such section, with respect to a Plan, excluding,

however, such events as to which the PBGC by regulation waived the requirement

of Section 4043(a) of ERISA that it be notified within 30 days of the

occurrence of such event, provided, however, that a failure to meet the minimum

funding standard of Section 412 of the Code and of Section 302 of ERISA shall

be a Reportable Event regardless of the issuance of any such waiver of the

notice requirement in accordance with either Section 4043(a) of ERISA or

Section 412(d) of the Code.

 

“Required Lenders”

means Lenders in the aggregate having at least 66 2/3% of the Aggregate

Commitment (not held by Defaulting Lenders who are not entitled to vote) or, if

the Aggregate Commitment has been terminated, Lenders in the aggregate holding

at least 66 2/3% of the aggregate unpaid principal amount of the outstanding

Advances (not held by Defaulting Lenders who are not entitled to vote).

 

“Response Date” is

defined in Section 2.25.

 

“Revolving Credit

Termination Balance” means the aggregate principal amount of Advances

outstanding on the Revolving Credit Termination Date after giving effect to any

Advances made or repaid on that date.

 

“Revolving Credit

Termination Date” means July 8, 2002 or any later date as may be specified as

the Revolving Credit Termination Date in accordance with Section 2.25.

 

“Reserve

Requirement” means, with respect to a LIBOR Interest Period, the maximum

aggregate reserve requirement on Eurocurrency liabilities.

 

“Section” means a

numbered section of this Agreement, unless another document is specifically

referenced.

 

“Single Employer

Plan” means a Plan maintained by the General Partner or the Borrower or any

member of the Controlled Group for employees of the General Partner or the

Borrower or any member of the Controlled Group.

 

“Subsidiary” means,

as to any Person, a corporation, partnership or other entity of which shares of

stock or other ownership interests having ordinary voting power (other than

stock or such other ownership interests having such power only by reason of the

happening of a contingency) to elect a majority of the board of directors or

other managers of such corporation, partnership or other entity are at the time

owned, or the management of which is otherwise controlled, directly or

indirectly through one or more intermediaries, or both, by such Person

including all subsidiaries consolidated pursuant to GAAP.  Unless otherwise qualified, all references

to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a

Subsidiary or Subsidiaries of the Borrower or the General Partner.

 

13

 

“Subsidiary

Guarantor” means each Subsidiary of Borrower or General Partner that does not

have any Indebtedness and which executes and delivers to the Administrative

Agent a Subsidiary Guaranty.

 

“Subsidiary

Guaranty” means any guaranty executed and delivered by any Subsidiary of the

Borrower, substantially in the form of Exhibit K, as the same may be amended,

supplemented or otherwise modified from time to time.

 

“Substantial

Portion” means, with respect to the Property of the General Partner, the

Borrower or their Subsidiaries, Property which (i) represents more than 10% of

the consolidated assets of the General Partner, the Borrower and their

Subsidiaries as disclosed on the most recently issued quarterly consolidated

financial statements of the General Partner, the Borrower and their

Subsidiaries, or (ii) is responsible for more than 10% of the consolidated net

sales or of the consolidated net income of the General Partner, the Borrower

and their Subsidiaries as reflected in the financial statements referred to in

clause (i) above.

 

“S&P” means

Standard & Poor’s Ratings Group and its successors.

 

“Taxes” means any

and all present or future taxes, duties, levies, imposts, deductions, charges

or withholdings, and any and all liabilities with respect to the foregoing, but

excluding Excluded Taxes and Other Taxes.

 

“Term Loan Request”

is defined in Section 2.25.

 

“Total Liabilities”

means all Indebtedness plus all other GAAP liabilities of the Borrower, General

Partner and their respective Subsidiaries.

 

“Total Property

Operating Income” means the sum of (i) earnings from rental operations

(computed in accordance with GAAP) plus depreciation, amortization and interest

expense (adjusted for any acquisitions and divestitures), and

(ii) (without redundancy) the Borrower’s pro rata share of Net Operating

Income from Investment Affiliates.  The

earnings from rental operations shall be adjusted to include pro forma earnings

(as substantiated to the satisfaction of the Administrative Agent) for an

entire quarter for any property acquired or placed in service during the

quarter and to exclude earnings during such quarter from any property not owned

as of the end of the quarter.

 

“Transferee” is

defined in Section 13.5.

 

“Type” means, with

respect to any Advance, its nature as a Prime Advance or a LIBOR Advance.

 

“Unencumbered

Asset” means, with respect to any Project which is in service, at any date of

determination, the circumstance that such asset on such date (a) is not

subject to any Liens or claims (including restrictions on transferability or

assignability) of any kind (including any such Lien, claim or restriction

imposed by the organizational documents of the Borrower or any Subsidiary, but

excluding Permitted Liens other than those identified in Sections 7.15(v)

and (vi)), (b) is not subject to any agreement (including (i) any

agreement governing Indebtedness incurred in order to finance or refinance the

acquisition of such asset, and (ii) if applicable, the organizational

documents of the Borrower or any Subsidiary) which prohibits or limits the

ability of the General Partner, the Borrower or any of their Subsidiaries to

create, incur, assume or suffer to exist any Lien upon any assets or Capital

Stock of the General Partner, the Borrower or any of their Subsidiaries,

(c) is not subject to any agreement (including any agreement governing

Indebtedness incurred in order to finance or refinance the acquisition of such

asset) which entitles any Person to the benefit of any Lien (but excluding

Permitted Liens other than those identified in Sections 7.15(v) and (vi))

on any assets or Capital Stock of the General Partner, the or any of their

Subsidiaries, or would entitle any Person to the benefit of any Lien (but

excluding Permitted Liens other than those identified in Sections 7.15(v)

and (vi)) on such assets or Capital Stock upon the occurrence of any

contingency (including, without limitation, pursuant to an “equal and ratable”

clause), and (d) is 100% owned in fee simple by the Borrower or a Subsidiary

Guarantor.  For the purposes of this

Agreement, any Property of a Subsidiary shall not be deemed to be unencumbered

unless both (i) such Property and (ii) all Capital Stock of such

Subsidiary held by the General Partner or the Borrower is unencumbered.

 

14

 

“Unfunded

Liabilities” means the amount (if any) by which the present value of all vested

nonforfeitable benefits under all Single Employer Plans exceeds the fair market

value of all such Plan assets allocable to such benefits, all determined as of

the then most recent valuation date for such Plans.

 

“Unmatured Default”

means an event which but for the lapse of time or the giving of notice, or

both, would constitute a Default.

 

“Unrestricted Cash

and Cash Equivalents” means, as of any date of determination, the sum of (a)

the aggregate amount of Unrestricted cash then held by the Borrower or any of its consolidated Subsidiaries and

(b) the aggregate amount of Unrestricted Cash Equivalents (valued at the lower

of cost and fair market value) then held by the Borrower or any of its

consolidated Subsidiaries.  As used in

this definition, “Unrestricted” means the specified asset is not subject to any

Liens or claims of any kind in favor of any Person.

 

“Value of

Unencumbered Assets” means, as of the end of a quarter, the value of all

Unencumbered Assets as of such date (other than those that are not approved by the

Required Lenders), determined by capitalizing the Property Operating Income for

such quarter (as annualized) from such Unencumbered Assets at a rate of

9.5%.  The Required Lenders shall have

the right to approve assets which are included in the determination of the

Value of Unencumbered Assets.  The

substitution or addition of new assets shall also be subject to the approval of

the Required Lenders.  If an approved

asset is acquired during a quarter then Borrower shall be entitled to include

pro forma Property Operating Income from such property for the entire quarter

in the foregoing calculation.  If an

asset is not owned as of the last day of a quarter then no value shall be

included based on capitalizing

Property Operating Income from such asset.

 

“Wholly-Owned

Subsidiary” of a Person means (i) any Subsidiary all of the outstanding voting securities of

which shall at the time be owned or controlled, directly or indirectly, by such

Person or one or more Wholly-Owned Subsidiaries of such Person, or by such

Person and one or more Wholly-Owned Subsidiaries of such Person, or (ii) any

partnership, association, joint venture or similar business organization 100%

of the ownership interests having ordinary voting power of which shall at the

time be so owned or controlled.

 

“Withdrawing

Lender” is defined in Section 2.24.

 

The foregoing

definitions shall be equally applicable to both the singular and plural forms of the defined terms.

 

ARTICLE II

THE CREDIT

2.1           Commitment.

 

From and including

the date of this Agreement and prior to the Revolving Credit Termination Date,

each Lender severally agrees, subject to the terms and conditions set forth in

this Agreement, to make Loans

to the Borrower from time to time prior to the Revolving Credit Termination

Date, provided that the making of any such Loan will not cause the total of the

outstanding principal balance of all Loans to exceed the Aggregate

Commitment.  Each Lender shall fund its

Percentage of each Advance and no Lender will be required to fund any amount,

which when aggregated with such Lender’s Percentage of all other Advances then

outstanding would exceed such Lender’s

Commitment.  Subject to the terms of

this Agreement, the Borrower may borrow, repay and reborrow at any time prior

to the Revolving Credit Termination Date. The Commitments of each Lender to

lend hereunder shall expire on the Revolving Credit Termination Date.

 

2.2           Final Principal Payment.

 

Any outstanding

Advances and all other unpaid Obligations shall be paid in full by the Borrower on the Facility Termination Date.

 

2.3           Loans.

 

Each Advance

hereunder shall consist of Loans made from the several Lenders ratably in

proportion to the ratio that their respective Commitments bear to the Aggregate

Commitment. The Advances may be Prime Advances or LIBOR Advances, or a

combination thereof, selected by the Borrower in accordance with Sections 2.10

and 2.11.

 

15

 

2.4           Applicable Margins.

 

The ABR Applicable

Margin and the LIBOR Applicable Margin to be used in calculating the interest

rate applicable to different Types of Advances shall vary from time to time in

accordance with the long-term unsecured debt ratings from Moody’s, Fitch and

S&P of the General Partner and the Borrower. In the event the General Partner

and the Borrower have different ratings, the rating of the higher rated entity

shall be used. In the event the rating agencies are split on the rating for the

higher rated entity, the second highest rating for such entity shall be deemed

to be the applicable rating (e.g., if the higher rated entity’s Moody’s debt

rating is Baa1, its S&P debt rating is BBB and its Fitch’s rating is BBB,

then the Applicable Margins shall be computed based on the S&P rating), and

the Applicable Margins shall be adjusted effective on the next Business Day

following any change in the higher rated entity’s Moody’s debt rating,

S&P’s debt rating and/or Fitch’s debt rating, as the case may be. The

applicable debt ratings and the Applicable Margins are set forth in the table attached

as Exhibit A. In the event that S&P, Fitch or Moody’s or any two of them

shall discontinue their ratings of the REIT industry, the General Partner or

the Borrower, a mutually agreeable substitute rating agency (or two mutually

agreeable substitute agencies if two of the existing rating agencies

discontinue such ratings) shall be selected by the Required Lenders and the

Borrower.  If the Required Lenders and

the Borrower cannot agree on a substitute rating agency or substitute rating

agencies within thirty (30) days of such discontinuance, or if S&P, Fitch

and Moody’s shall discontinue their ratings of the REIT industry, the Borrower,

or the General Partner, the Applicable Margin to be used for the calculation of

interest on Advances hereunder shall be the highest Applicable Margin for each

Type.

 

If a rating agency

downgrade or discontinuance results in an increase in the ABR Applicable

Margin, the LIBOR Applicable Margin, or Facility Fee Rate and if such increase

is reversed and the affected Applicable Margin is restored within ninety (90)

days thereafter, at the Borrower’s request, the Borrower shall receive a credit

against interest next due the Lenders equal to interest accrued from time to

time during such period of downgrade or discontinuance and actually paid by the

Borrower on the Advances at the differential between such Applicable Margins

and the differential of the Facility Fee paid during such period of downgrade.

 

If a rating agency

upgrade results in a decrease in the ABR Rate Applicable Margin, LIBOR

Applicable Margin or Facility Fee Rate and if such upgrade is reversed  and the affected Applicable Margin is

restored within ninety (90) days thereafter, Borrower shall be required to pay

an amount to the Lenders equal to the interest differential on the Advances and

the differential on the Facility Fees during such period of upgrade.

 

2.5           Facility Fee.

 

The Borrower agrees

to pay to the Administrative Agent for the account of each Lender a facility

fee (the “Facility Fee”) calculated at a per annum percentage (“Facility Fee

Rate”) of the total Aggregate Commitment. The Facility Fee Rate shall vary from

time to time based on the Borrower’s or General Partner’s long term unsecured

debt rating as set forth in the table attached hereto as Exhibit A, and

determined in a manner consistent with the provisions of Section 2.4 relating

to the Applicable Margins, and the Facility Fee payable quarterly in arrears on

the last day of each calendar quarter hereafter beginning September 30,

2001 and on the Facility Termination Date.

 

2.6           Upfront Fee.

 

The Borrower will

pay to Administrative Agent the fees specified in that certain Fee Letter dated

May 7, 2001 at the times specified therein.

 

2.7           Conversion and Extension Fees.

If Borrower

exercises its option pursuant to a Term Loan Request under Section 2.25 of

this Agreement to convert the aggregate outstanding Loans to a term loan,

Borrower shall pay each Lender a fee equal to a percentage of the aggregate of

such Lender’s outstanding Loans on the initial Revolving Credit Termination

Date equal to the upfront fee (expressed as a

 

16

 

percentage) paid to

such Lender on the Closing Date. If the Facility is extended pursuant to an

Extension Request under Section 2.25 of this Agreement, Borrower shall pay

each Continuing Lender a fee equal to the upfront fee (expressed as a

percentage) paid to such Lender on the Closing Date of such Continuing Lender’s

Commitment immediately after the extension and reallocation of all of the

Commitments pursuant to Section 2.25.

 

2.8           Minimum Amount of Each Advance.

 

Each LIBOR Advance

shall be in the minimum amount of $2,000,000 (and in multiples of $1,000,000 if in excess thereof), and each ABR

Advance shall be in the minimum amount of $2,000,000 (and in multiples of

$1,000,000 if in excess thereof), provided, however, that any ABR Advance may

be in the amount of the unused Aggregate Commitment.

 

2.9           Optional Principal Payments.

 

The Borrower may

from time to time pay, without penalty or premium, all or any part of

outstanding ABR Advances upon two Business Days’ prior notice to the

Administrative Agent. The Borrower may from time to time pay a LIBOR Advance,

provided a LIBOR Advance may not be paid prior to the last day of the applicable

LIBOR Interest Period unless

accompanied by any amount due pursuant to Section 4.4.

 

2.10         Method of Selecting Types and Interest Periods for New

Advances.

 

The Borrower shall

select the Type of Advance and, in the case of each LIBOR Advance, the LIBOR Interest Period applicable to each Advance from

time to time. The Borrower shall give the Administrative Agent irrevocable

notice (a “Borrowing Notice”) (i) not later than 10:00 a.m. Chicago

time, at least one (1) Business Day before the Borrowing Date of each Prime

Advance and (ii) not later than 10:00 a.m. Chicago time, at least three

(3) Business Days before the Borrowing Date for each LIBOR Advance, specifying:

(a)           the Borrowing Date, which shall be a

Business Day, of such Advance,

(b)           the aggregate amount of such Advance,

(c)           the Type of Advance selected, and

(d)           in the case of each LIBOR Advance, the LIBOR Interest

Period applicable thereto.

 

Not later than noon

(Chicago time) on each Borrowing Date, each Lender shall make available its

Loan or Loans, in funds immediately available in Chicago to the Administrative

Agent at its address specified pursuant to Article XIV.  The Lenders shall not be obligated to match

fund their LIBOR Advances. The Administrative Agent will make the funds so

received from the Lenders available to the Borrower at the Administrative

Agent’s aforesaid address.

 

No LIBOR Interest

Period may end after the Facility Termination Date and, unless all of the

Lenders otherwise agree in writing, in no event may there be more than seven (7) different LIBOR Interest

Periods for LIBOR Advances outstanding at any one time.

 

2.11         Conversion and Continuation of Outstanding Advances.

 

ABR Advances shall

continue as ABR Advances unless and until such ABR Advances are converted into

LIBOR Advances. Each LIBOR Advance shall continue as a LIBOR Advance until the

end of the then applicable LIBOR Interest Period therefor, at which time such

LIBOR Advance shall be automatically converted into an ABR Advance unless the

Borrower shall have given the Administrative Agent a Conversion/Continuation

Notice requesting that, at the end of such LIBOR Interest Period, such LIBOR

Advance continue as a LIBOR Advance for the same or another LIBOR Interest Period. Subject to the terms

of Section 2.8, the Borrower may elect from time to time to convert all or any

part of an Advance of any Type into any other Type of Advance; provided that

any conversion of any LIBOR Advance shall be made

 

17

 

on, and only on,

the last day of the LIBOR Interest Period applicable thereto. 

The Borrower shall give the Administrative Agent irrevocable notice (a

“Conversion/Continuation Notice”) of each conversion of an Advance or

continuation of a LIBOR Advance not later than 10:00 a.m. (Chicago time) at

least one Business Day, in the case of a conversion into an ABR Advance, or

three Business Days, in the case of a conversion into or continuation of a

LIBOR Advance, prior to the date of the requested conversion or continuation,

specifying:

 

(i)            the requested date which shall be a Business Day, of such

conversion or continuation;

(ii)           the aggregate amount and Type of the Advance which is to

be converted or continued; and

(iii)          the amount and Type(s) of Advance(s) into which such

Advance is to be converted or continued and, in the case of a conversion into

or continuation of a LIBOR Advance, the duration of the LIBOR Interest Period

applicable thereto.

 

2.12         Changes in Interest Rate, Etc.

 

Each ABR Advance

shall bear interest on the outstanding principal amount thereof, for each day

from and including the date such Advance is made or is converted from a LIBOR

Advance into a ABR Advance pursuant to Section 2.11 to but excluding the

date it becomes due or is converted into a LIBOR Advance pursuant to Section

2.11 hereof, at a rate per annum equal to the ABR Rate for such day.  Changes in the rate of interest on that

portion of any Advance maintained as a ABR Advance will take effect

simultaneously with each change in the Alternate Base Rate.  Each LIBOR Advance shall bear interest from

and including the first day of the LIBOR Interest Period applicable thereto to

(but not including) the last day of such LIBOR Interest Period at the interest

rate determined as applicable to such LIBOR Advance.

 

2.13         Rates Applicable After Default.

 

Notwithstanding

anything to the contrary contained in Section 2.10 or 2.11, during the

continuance of a Default or Unmatured Default the Required Lenders may, at

their option, by notice to the Borrower (which notice may be revoked at the

option of the Required Lenders notwithstanding any provision of Section 9.2

requiring unanimous consent of the Lenders to changes in interest rates),

declare that no Advance may be made as, converted into or continued beyond its

current term as a LIBOR Advance.  During

the continuance of a Default the Required Lenders may, at their option, by

notice to the Borrower (which notice may be revoked at the option of the

Required Lenders notwithstanding any provision of Section 9.2 requiring

unanimous consent of the Lenders to changes in interest rates), declare that

(i) each LIBOR Advance shall bear interest for the remainder of the applicable

LIBOR Interest Period at the rate otherwise applicable to such LIBOR Interest

Period plus 2% per annum and (ii) each ABR Advance shall bear interest at a

rate per annum equal to the ABR Rate otherwise applicable to the ABR Advance

plus 2% per annum; provided that such rates shall become applicable

automatically without notice to the Borrower if a Default occurs under

Section 8.7 or Section 8.8.

 

2.14         INTENTIONALLY OMITTED

 

2.15         Voluntary Reduction in Aggregate Commitment.

 

Upon at least

fifteen (15) days prior irrevocable written notice (or telephone notice

promptly confirmed in writing) to the Administrative Agent, Borrower shall have

the right, without premium or penalty, to terminate permanently the Aggregate

Commitment in whole or in part provided that (a) Borrower may not reduce the

Aggregate Commitment below the total outstanding principal amount of Loans at the

time of such requested reduction, and (b) any such partial termination shall be

in the minimum aggregate amount of Five Million Dollars ($5,000,000.00) or any integral multiple of Five Million

Dollars ($5,000,000.00) in excess thereof. 

Any partial termination of the Aggregate Commitment shall be applied pro

rata to each Lender’s Commitment.

 

18

 

2.16         Method of Payment.

 

All payments of the

Obligations hereunder shall be made, without setoff, deduction, or counterclaim,

in immediately available funds to the Administrative Agent at the

Administrative Agent’s address specified pursuant to Article XIV, or at any

other Lending Installation of the Administrative Agent specified in writing by

the Administrative Agent to the Borrower, by noon (local time) on the date when

due and shall be applied by the Administrative Agent among the Lenders in

accordance with the class or type of Obligation being paid.  Each payment delivered to the Administrative

Agent for the account of any Lender shall be delivered by the Administrative

Agent to such Lender in the same type of funds that the Administrative Agent

received at its address specified pursuant to Article XIV or at any Lending

Installation specified in a notice received by the Administrative Agent from

such Lender promptly, which is expected to be by the close of business on the

same Business Day received by Administrative Agent if received by noon (local

time) but shall in any event not be later than the next Business Day, provided

that the Administrative Agent shall pay to such Lenders interest thereon, at

the lesser of (i) the Federal Funds Effective Rate and (ii) the rate of

interest applicable to such Loans, from the Business Day such funds are

received by the Administrative Agent in immediately available funds (provided,

if such funds are not received by the Administrative Agent by noon (local

time), such period shall commence on the Business Day immediately following the

day such funds are received) until such funds are paid to such Lenders. If

Borrower makes its payment by Noon (local time) on a Business Day it shall not

be responsible for additional amounts owed to Lenders if such funds are not

received by the Lenders on such Business Day. 

The Administrative Agent is hereby authorized to charge the account of

the Borrower maintained with Bank One for each payment of any of the

Obligations as it becomes due hereunder.

 

2.17         Notes; Telephonic Notices.

 

Each Lender is

hereby authorized to record the principal amount of each of its Loans and each

repayment on the schedule attached to its Note, provided, however, that the

failure to so record shall not affect the Borrower’s obligations under such

Note.  Each Lender’s books and records,

including without limitation, the information, if any, recorded by the Lender

on the Schedule attached to its Note, shall be deemed to be prima facia

correct.  The Borrower hereby authorizes

the Lenders and the Administrative Agent to extend, convert or continue

Advances, effect selections of Types of Advances and to transfer funds based on

telephonic notices made by any person or persons the Administrative Agent or

any Lender in good faith believes to be acting on behalf of the Borrower.  The Borrower agrees to deliver promptly to

the Administrative Agent a written confirmation signed by an Authorized Officer

of each telephonic notice, if such confirmation is requested by the

Administrative Agent or any Lender.  If

the written confirmation differs in any material respect from the action taken

by the Administrative Agent and the Lenders, the records of the Administrative

Agent and the Lenders shall govern absent manifest error.

 

2.18         Interest Payment Dates; Interest and Fee Basis.

 

Interest accrued on

each Advance shall be payable on each Payment Date, commencing with the first

such date to occur after the date hereof, and at maturity, whether by

acceleration or otherwise.  Interest

accrued on each LIBOR Advance shall also be payable on any date on which the

LIBOR Advance is prepaid (provided that nothing herein shall authorize a

prepayment which is not otherwise permitted hereunder). Interest and Facility

Fees shall be calculated for actual days elapsed on the basis of a 360-day

year. Interest shall be payable for the day an Advance is made but not for the

day of any payment on the amount paid if payment is received prior to noon

(local time) at the place of payment. 

If any payment of principal of or interest on an Advance shall become

due on a day which is not a Business Day, such payment shall be made on the

next succeeding Business Day and, in the case of a principal payment, such

extension of time shall be included in computing interest in connection with

such payment.

 

2.19         Notification of Advances, Interest Rates and Prepayments.

 

Promptly after

receipt thereof (but in no event later than one Business Day prior to the

proposed Borrowing Date for a ABR Advance or three Business Days prior to the

proposed Borrowing Date for a LIBOR Advance) the Administrative

 

19

 

Agent will notify

each Lender of the contents of each Borrowing Notice, Term Loan Request,

Extension Request, Conversion/Continuation Notice, and repayment notice

received by it hereunder. The Administrative Agent will notify each Lender of

the interest rate applicable to each LIBOR Advance promptly upon determination

of such interest rate and will give each Lender prompt notice of each change in

the Alternate Base Rate.

 

2.20         Lending Installations.

 

Each Lender may

book its Loans at any Lending Installation selected by such Lender and may

change its Lending Installation from time to time.  All terms of this Agreement shall apply to any such Lending

Installation and the Notes shall be deemed held by each Lender for the benefit

of such Lending Installation.  Each

Lender may, by written or telex notice to the Administrative Agent and the

Borrower, designate a Lending Installation through which Loans will be made by

it and for whose account Loan payments are to be made.

 

2.21         Non-Receipt of Funds by the Administrative Agent.

 

Unless the Borrower or a Lender, as the case

may be, notifies the Administrative Agent prior to the date on which it is

scheduled to make payment to the Administrative Agent of (i) in the case of a

Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a payment

of principal, interest or fees to the Administrative Agent for the account of

the Lenders, that it does not intend to make such payment, the Administrative

Agent may assume that such payment has been made.  The Administrative Agent may, but shall not be obligated to, make

the amount of such payment available to the intended recipient in reliance upon

such assumption.  If such Lender or the

Borrower, as the case may be, has not in fact made such payment to the

Administrative Agent, the recipient of such payment shall, on demand by the

Administrative Agent, repay to the Administrative Agent the amount so made

available together with interest thereon in respect of each day during the

period commencing on the date such amount was so made available by the

Administrative Agent until the date the Administrative Agent recovers such

amount at a rate per annum equal to (i) in the case of payment by a Lender, the

Federal Funds Effective Rate for such day or (ii) in the case of payment by the

Borrower, the interest rate applicable to the relevant Loan.

 

2.22         Usury.

This Agreement and

each Note are subject to the express condition that at no time shall the

Borrower be obligated or required to pay interest on the principal balance of

the Loan at a rate which could subject any Lender to either civil or criminal

liability as a result of being in excess of the Maximum Legal Rate.  If by the terms of this Agreement or the

Loan Documents, the Borrower is at any time required or obligated to pay

interest on the principal balance due hereunder at a rate in excess of the

Maximum Legal Rate, the interest rate or the Default Rate, as the case may be,

shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous

payments in excess of the Maximum Legal Rate shall be deemed to have been

payments in reduction of principal and not on account of the interest due

hereunder.  All sums paid or agreed to

be paid to a Lender for the use, forbearance, or detention of the sums due

under the Loan, shall, to the extent permitted by applicable law, be amortized,

prorated, allocated, and spread throughout the full stated term of the Loan

until payment in full so that the rate or amount of interest on account of the

Loan does not exceed the Maximum Legal Rate of interest from time to time in

effect and applicable to the Loan for so long as the Loan is outstanding.

 

2.23         Applications of Moneys Received.

All moneys collected or received by the

Administrative Agent on account of the Facility directly or indirectly, shall

be applied in the following order of priority:

(i)            to the payment of all reasonable costs incurred in the

collection of such moneys of which the Administrative Agent shall have given

notice to the Borrower;

 

(ii)           to the reimbursement of any yield protection due to the

Lenders in accordance with Section 4.1;

 

20

 

(iii)          to the payment of the Facility Fee to the Lenders, if then

due, in accordance with their Percentages and to the payment of the

Administrative Agent’s Fee to the Administrative Agent if then due;

 

(iv)          (a) in case the entire unpaid principal of the Loan shall

not have become due and payable, the whole amount received as interest then due

to the Lenders (other than a Defaulting Lender) as their respective Percentages

appear, together with the whole amount, if any, received as principal to the

Lenders as their respective Percentages appear, or (b) in case the entire

unpaid principal of the Loan shall have become due and payable, as a result of

a Default or otherwise, to the payment of the whole amount then due and payable

on the Loan for principal, together with interest thereon at the Default Rate

to the Lenders (other than a Defaulting Lender) as their respective Percentages

appear until paid in full; and

 

(v)           to the payment of any sums due to each Defaulting Lender

as their respective Percentages appear (provided that Administrative Agent

shall have the right to set-off against such sums any amounts due from such

Defaulting Lender).

 

2.24         Conversion and Extension Options.

 

The Borrower shall

have the option to (1) convert the Revolving Credit Termination Balance to

a one-year term loan maturing on July 8, 2003 (in which case any unfunded

portion of the Commitments shall be cancelled and the Facility Termination Date

shall be extended to July 8, 2003), provided no Default exists (a “Term Loan

Request”), or (2) request a 364 day extension to July 7, 2003 of both the

Revolving Credit Termination Date and the Facility Termination Date (an

“Extension Request”).  Borrower must

provide any such Term Loan Request or Extension Request to the Administrative

Agent no more than sixty (60) days prior to the initial Revolving Credit Termination

Date, and no less than thirty (30) days prior to the initial Revolving Credit

Termination Date, provided that if Borrower issues an Extension Request and

such request is not approved by the Required Lenders, Borrower may issue a Term

Loan Request within five (5) days of notification that such request was not

approved.  Promptly upon receipt from

the Borrower of any notice pursuant to this Section 2.25, the Administrative

Agent shall notify each Lender of the contents of such notice and, in the case

of an Extension Request, shall request that such Lender approve the Extension

Request.  If the Borrower issues a Term

Loan Request, the Revolving Credit Termination Balance shall be converted to a

term loan in the manner described above without the need for any consent or

approval of the Administrative Agent, the Arranger, the Lenders or any other

party.  Each Lender approving an

Extension Request shall deliver its written consent (a “Consent Notice”) to the

Borrower and the Administrative Agent on or prior to the fifteenth (15th)

day after the date on which such notice is sent by the Administrative Agent to

the Lenders (the “Response Date”). Each Lender may give or withhold its consent

to any Extension Request in its sole discretion. The extension pursuant to any

Extension Request shall only be effective if such extension is approved by the

Required Lenders, and such extension shall not be effective with respect to any

Lender which (i) by notice (a “Withdrawal Notice”) to the Borrower and the

Administrative Agent prior to the Response Date declines to consent to such

Extension Request or (ii) fails to respond to the Borrower and the

Administrative Agent prior to the Response Date (each such Lender, a

“Withdrawing Lender” and each Lender other than a Withdrawing Lender, a

“Continuing Lender”). The Administrative Agent shall promptly notify the

Borrower and the Lenders whether the Extension Request was approved or denied.

If the consent of the Required Lenders to any such Extension Request is

received by the Administrative Agent on or prior to the Response Date, (i) the

new Revolving Credit Termination Date shall become effective on the initial

Revolving Credit Termination Date, (ii) the Agent shall promptly notify the

Borrower and each Lender of the new Revolving Credit Termination Date, (iii)

the Commitments of the Continuing Lenders shall be extended on the initial

Revolving Credit Termination Date and (iv) the Withdrawing Lenders shall be

paid in full and their Commitments shall be cancelled or assumed by new lenders

selected by the Borrower and the Arranger on the initial Revolving Credit

Termination Date. Upon repayment of a Withdrawing Lender’s Loans, such Lender

shall be released from this Agreement, its Percentage of the Aggregate

Commitment, and all of the rights and obligations under the Agreement as of the

date of such release. Such Lender will remain responsible for all obligations

accruing prior to the date of such release. Concurrently with such release, the

Aggregate Commitment shall be reduced by the Commitment of the Lender that is

released and the Percentages shall be recalculated, unless the Borrower

arranges for a new lender to assume such Lender’s Commitment by assignment in

accordance with the terms of this Agreement.

 

21

 

(b)  A Withdrawing Lender shall be obliged, at

the request of the Borrower and the Arranger and subject to such Withdrawing

Lender receiving payment in full of all amounts owing to it under this

Agreement, to assign, without recourse or warranty and by an assignment agreement

substantially in the form of “Exhibit H” attached hereto, all of its rights and

obligations under this Agreement to another financial institution nominated by

the Borrower and the Arranger and willing to participate in the facility

through the new Revolving Credit Termination Date in place of such Withdrawing

Lender; provided that such assignee satisfies all of the requirements of this

Agreement.

 

ARTICLE III

INTENTIONALLY OMITTED

 

ARTICLE IV

CHANGE IN CIRCUMSTANCES

4.1           Yield Protection.

 

If, on or after the

date of this Agreement, the adoption of any law or any governmental or quasi–governmental

rule, regulation, policy, guideline or directive (whether or not having the

force of law), or any change in the interpretation or administration thereof by

any governmental or quasi-governmental authority, central bank or comparable

agency charged with the interpretation or administration thereof, or compliance

by any Lender or applicable Lending Installation or the Issuing Bank with any

request or directive (whether or not having the force of law) of any such

authority, central bank or comparable agency:

 

(a)           subjects any Lender or any applicable Lending Installation

to any Taxes, or changes the basis of taxation of payments (other than with

respect to Excluded Taxes) to any Lender in respect of its LIBOR Loans, or

 

(b)           imposes or increases or deems applicable any reserve,

assessment, insurance charge, special deposit or similar requirement against

assets of, deposits with or for the account of, or credit extended by, any

Lender or any applicable Lending Installation (other than reserves and

assessments taken into account in determining the interest rate applicable to

LIBOR Advances), or

 

(c)           imposes any other condition the result of which is to

increase the cost to any Lender or any applicable Lending Installation of

making, funding or maintaining its LIBOR Loans, or reduces any amount

receivable by any Lender or any applicable Lending Installation in connection

with its LIBOR Loans, or requires any Lender or any applicable Lending

Installation to make any payment calculated by reference to the amount of LIBOR

Loans, held or interest received by it, by an amount deemed material by such

Lender, and the result of any of the foregoing is to increase the cost to such

Lender or applicable Lending Installation as the case may be, of making or

maintaining its LIBOR Loans or Commitment or to reduce the return received by

such Lender or applicable Lending Installation as the case may be, in

connection with such LIBOR Loans or Commitment, then, within 15 days of demand

by such Lender the Borrower shall pay such Lender such additional amount or

amounts as will compensate such Lender as the case may be, for such increased

cost or reduction in amount received.

 

4.2           Changes in Capital Adequacy

Regulations.

 

If a Lender in good

faith determines the amount of capital required or expected to be maintained by such Lender,

any Lending Installation of such Lender or any corporation controlling such

Lender is increased as a result of a Change (as hereinafter defined), then,

within 15 days of demand by such Lender, the Borrower shall pay such Lender the

amount necessary to compensate for any shortfall in the rate of return on the

portion of such increased capital which such Lender in good faith determines is

attributable to this Agreement, or its obligation to make Loans hereunder

(after taking into account such Lender’s or the Issuing Bank’s policies as to

capital adequacy). “Change” means (i) any change after the date of this Agreement

in the Risk–Based Capital Guidelines (as hereinafter defined) or

(ii) any adoption of or change in any

 

22

 

other law,

governmental or quasi–governmental rule, regulation, policy, guideline, interpretation, or directive

(whether or not having the force of law) after the date of this Agreement which

affects the amount of capital required or expected to be maintained by any

Lender or any Lending Installation or any corporation controlling any Lender.

“Risk-Based Capital Guidelines” means (i) the risk-based capital

guidelines in effect in the United States on the date of this Agreement,

including transition rules, and (ii) the corresponding capital regulations

promulgated by regulatory authorities outside the United States implementing

the July 1988 report of the Basel Committee on Banking Regulation and

Supervisory Practices Entitled “International Convergence of Capital

Measurements and Capital Standards,” including transition rules, and any

amendments to such regulations adopted prior to the date of this Agreement.

 

4.3           Availability of Types of Advances.

 

If any Lender in

good faith determines that maintenance of any of its LIBOR Loans at a suitable

Lending Installation would violate any applicable law, rule, regulation or

directive, whether or not having the force of law, the Administrative Agent

shall suspend the availability of the affected Type of Advance and require any

LIBOR Advances of the affected Type to be repaid; or if the Required Lenders in

good faith determine that (i) deposits of a type or maturity appropriate

to match fund LIBOR Advances are not available, or (ii) an interest rate

applicable to a Type of Advance does not accurately reflect the cost of making

a LIBOR Advance of such Type, then, the Administrative Agent shall suspend the

availability of the affected Type of Advance with respect to any LIBOR Advances

made after the date of any such determination. If the Borrower is required to

so repay a LIBOR Advance, the Borrower may concurrently with such repayment

borrow from the Lenders, in the amount of such repayment, a Loan bearing

interest at the Alternate Base Rate.

 

4.4           Funding Indemnification.

 

If any payment of a LIBOR Advance occurs on a

date which is not the last day of the applicable Interest Period, whether

because of acceleration, prepayment or otherwise, or a LIBOR Advance is not

made on the date specified by the Borrower for any reason other than default by

the Lenders or as a result of unavailability pursuant to Section 4.3, the

Borrower will indemnify each Lender for any loss or cost incurred by it

resulting therefrom, including, without limitation, any loss or cost in

liquidating or employing deposits acquired to fund or maintain the LIBOR

Advance and shall pay all such losses or costs within fifteen (15) days after

written demand therefor.

 

4.5           Taxes.

 

(i)            All payments by the Borrower to or for the account of any

Lender or the Administrative Agent hereunder or under any Note shall be made

free and clear of and without deduction for any and all Taxes.  If the Borrower shall be required by law to

deduct any Taxes from or in respect of any sum payable hereunder to any Lender

or the Administrative Agent, (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 4.5) such Lender or

the Administrative Agent (as the case may be) receives an amount equal to the

sum it would have received had no such deductions been made, (b) the Borrower

shall make such deductions, (c) the Borrower shall pay the full amount deducted

to the relevant authority in accordance with applicable law and (d) the

Borrower shall furnish to the Administrative Agent the original copy of a

receipt evidencing payment thereof within 30 days after such payment is made.

 

(ii)           In addition, the Borrower hereby agrees to pay any present

or future stamp or documentary taxes and any other excise or property taxes,

charges or similar levies which arise from any payment made hereunder or under

any Note or from the execution or delivery of, or otherwise with respect to,

this Agreement or any Note (“Other Taxes”).

 

(iii)          The Borrower hereby agrees to indemnify the Administrative

Agent and each Lender for the full amount of Taxes or Other Taxes (including, without limitation,

any Taxes or Other Taxes imposed on amounts payable under this Section 4.5)

paid by the Administrative Agent or such Lender and any liability (including

penalties, interest and expenses) arising therefrom or with respect thereto.

Payments due under this indemnification shall be made within 30 days of the

date the Administrative Agent or such Lender makes demand therefor pursuant to

Section 4.6.

 

23

 

(iv)          Each Lender that is not incorporated under the laws of the

United States of America or a state thereof (each a “Non-U.S. Lender”) agrees

that it will, not more than ten Business Days after the date of this Agreement,

(i) deliver to each of the Borrower and the Administrative Agent two duly

completed copies of United States Internal Revenue Service Form W-8BEN or

W-8ECI, certifying in either case that such Lender is entitled to receive

payments under this Agreement without deduction or withholding of any United

States federal income taxes, and (ii) deliver to each of the Borrower and the

Administrative Agent a United States Internal Revenue Form W-8 or W-9, as the

case may be, and certify that it is entitled to an exemption from United States

backup withholding tax. Each Non-U.S. Lender further undertakes to deliver to

each of the Borrower and the Administrative Agent (x) renewals or additional

copies of such form (or any successor form) on or before the date that such

form expires or becomes obsolete, and (y) after the occurrence of any event

requiring a change in the most recent forms so delivered by it, such additional

forms or amendments thereto as may be reasonably requested by the Borrower or

the Administrative Agent. All forms or amendments described in the preceding

sentence shall certify that such Lender is entitled to receive payments under

this Agreement without deduction or withholding of any United States federal

income taxes, unless an event

(including without limitation any change in treaty, law or regulation) has

occurred prior to the date on which any such delivery would otherwise be

required which renders all such forms inapplicable or which would prevent such

Lender from duly completing and delivering any such form or amendment with

respect to it and such Lender advises the Borrower and the Administrative Agent

that it is not capable of receiving payments without any deduction or

withholding of United States federal income tax.

 

(v)           For any period during which a Non-U.S. Lender has failed

to provide the Borrower with an appropriate form pursuant to clause (iv), above

(unless such failure is due to a change in treaty, law or regulation, or any

change in the interpretation or administration thereof by any governmental

authority, occurring subsequent to the date on which a form originally was

required to be provided), such Non-U.S. Lender shall not be entitled to

indemnification under this Section 4.5 with respect to Taxes imposed by the

United States.

 

(vi)          Any Lender that is entitled to an exemption from or

reduction of withholding tax with respect to payments under this Agreement or

any Note pursuant to the law of any relevant jurisdiction or any treaty shall

deliver to the Borrower (with a copy to the Administrative Agent), at the time

or times prescribed by applicable law, 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 following receipt of such

documentation.

 

(vii)         If the U.S. Internal Revenue Service or any other

governmental authority of the United States or any other country or any

political subdivision thereof asserts a claim that the Administrative Agent did

not properly withhold tax from amounts paid to or for the account of any Lender

(because the appropriate form was not delivered or properly completed, because

such Lender failed to notify the Administrative Agent of a change in

circumstances which rendered its exemption from withholding ineffective, or for

any other reason), such Lender shall indemnify the Administrative Agent fully

for all amounts paid, directly or indirectly, by the Administrative Agent as

tax, withholding therefor, or otherwise, including penalties and interest, and

including taxes imposed by any jurisdiction on amounts payable to the

Administrative Agent under this subsection, together with all costs and

expenses related thereto (including attorneys fees and time charges of

attorneys for the Administrative Agent, which attorneys may be employees of the

Administrative Agent). The obligations of the Lenders under this Section

4.5(vii) shall survive the payment of the Obligations and termination of this

Agreement.

 

4.6           Lender Statements; Survival of Indemnity.

 

To the extent

reasonably possible, each Lender shall designate an alternate Lending

Installation with respect to its LIBOR Loans to reduce any liability of the

Borrower to such Lender under Sections 4.1, 4.2 and 4.5 or to avoid the

unavailability of Advances under Section 4.3, so long as such designation does

not reduce such Lender’s income or increase such Lender’s liabilities. Each

Lender shall deliver a written statement of such Lender to the Borrower (with a

copy to the Administrative Agent) as to the amount due, if any, under Section

4.1, 4.2, 4.4 or 4.5. Such written statement shall set forth

 

24

 

in reasonable

detail the calculations upon which such Lender determined such amount and shall

be final, conclusive and binding on the Borrower in the absence of manifest

error. Determination of amounts payable under such Sections in connection with

a LIBOR Loan shall be calculated as though each Lender funded its LIBOR Loan

through the purchase of a deposit of the type and maturity corresponding to the

deposit used as a reference in determining the LIBOR Rate applicable to such

Loan, whether in fact that is the case or not. Unless otherwise provided

herein, the amount specified in the written statement of any Lender shall be

payable on demand after receipt by the Borrower of such written statement. The

obligations of the Borrower under Sections 4.1, 4.2, 4.4 and 4.5 shall survive

payment of the Obligations and termination of this Agreement.

 

4.7           Replacement of Lenders under

Certain Circumstances.

 

The Borrower shall

be permitted to replace any Lender which (a) is not capable of receiving

payments without any deduction or withholding of United States federal income

tax pursuant to Section 4.5, or (b) cannot maintain its LIBOR Loans

at a suitable Lending Installation pursuant to Section 4.6, with a

replacement bank or other financial institution; provided that (i) such

replacement does not conflict with any applicable legal or regulatory

requirements affecting the remaining Lenders, (ii) no Default or (after

notice thereof to Borrower) no Unmatured Default  shall have occurred and be continuing at the time of such

replacement, (iii) the Borrower shall repay (or the replacement bank or

institution shall purchase, at par) all Loans and other amounts owing to such

replaced Lender prior to the date of replacement, (iv) the Borrower shall

be liable to such replaced Lender under Sections 4.4 and 4.6 if any LIBOR

Loan owing to such replaced Lender shall be prepaid (or purchased) other than

on the last day of the Interest Period relating thereto, (v) the

replacement bank or institution, if not already a Lender, and the terms and

conditions of such replacement, shall be reasonably satisfactory to the

Administrative Agent, (vi) the replaced Lender shall be obligated to make

such replacement in accordance with the provisions of Section 13.3

(provided that the Borrower shall be obligated to pay the processing fee

referred to therein), (vii) until such time as such replacement shall be

consummated, the Borrower shall continue to pay all amounts payable hereunder

without setoff, deduction, counterclaim or withholding and (viii) any such

replacement shall not be deemed to be a waiver of any rights which the

Borrower, the Administrative Agent or any other Lender shall have against the

replaced Lender.

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.1           Effective Date.

 

This Agreement

shall not become effective, and the Lenders shall not be required to make the

initial Advance hereunder unless (a) the Borrower shall have paid all fees due

and payable to the Lenders and the Administrative Agent hereunder, and (b) the

Borrower shall have furnished to the Administrative Agent, in form and

substance satisfactory to the Lenders and their counsel and with sufficient

copies for the Lenders, the following:

(i)            The duly executed originals of the Loan Documents,

including the Notes, payable to the order of each of the Lenders, the Guaranty

and this Agreement;

(ii)           Copies, certified by an officer of the General Partner, of

(1) its formation documents (including by-laws), together with all amendments

thereto and (2) the formation documents (including the Partnership Agreement)

of the Borrower, together with all amendments thereto;

(iii)          An incumbency certificate, executed by an officer of the

General Partner, which shall identify by name and title and bear the signature

of the Persons authorized to sign the Loan Documents and to make borrowings

hereunder on behalf of the Borrower, upon which certificate the Administrative

Agent and the Lenders shall be entitled to rely until informed of any change in

writing by the Borrower;

(iv)          Certificates of good standing for the General Partner and

the Borrower, certified by the appropriate governmental officer of the State of

Indiana, and if requested by Administrative Agent, foreign qualification

certificates for the General Partner and the Borrower, certified by the

appropriate governmental officer, for each jurisdiction where the failure to so

qualify or be licensed (if required) would have a Material Adverse Effect

 

25

 

(v)           Copies, certified by the Secretary or Assistant Secretary,

of the General Partner’s Board of Directors’ resolutions (and resolutions of

other bodies, if any are deemed necessary by counsel for any Lender) authorizing

the Advances provided for herein and the execution, delivery and performance of

the Loan Documents to be executed and delivered by the General Partner and the

Borrower hereunder;

 

(vi)          A written opinion of the General Partner and the Borrower’s

counsel, addressed to the Lenders in substantially the form of Exhibit D

hereto;

 

(vii)         A certificate, signed by an officer of the General Partner

on behalf of the Borrower and for itself, stating that on the initial Borrowing

Date no Default or Unmatured Default has occurred and is continuing and that

all representations and warranties of the General Partner and the  Borrower are true and correct as of the

initial Borrowing Date;

 

(viii)        A Financial Officer’s Certificate for

Borrower certifying attached financial statement and compliance certificate in

substantially the form of Exhibit F hereto (including all schedules or

exhibits) as of March 31, 2001 including a certificate from an officer of the

General Partner that there has been no material adverse change in the

information in such financial statement and compliance certificate;

 

(ix)           UCC financing statement, judgment, and tax lien searches

with respect to the General Partner and the Borrower from their states of

organization and the states where they have their principal place of business;

 

(x)            Evidence of sufficient Unencumbered Assets (which

evidence if requested by Administrative Agent may include mortgage releases and

title policies) to assist the Administrative Agent in determining the

Borrower’s compliance with the covenants set forth in Article VII herein;

 

(xi)           Written money transfer instructions, in substantially the

form of Exhibit E hereto, addressed to the Administrative Agent and signed

by an Authorized Officer, together with such other related money transfer

authorizations as the Administrative Agent may have reasonably requested;

 

(xii)          Evidence that all parties whose consent is required for

Borrower or General Partner to execute the Loan Documents have provided such

consents;

 

(xiii)         Evidence that the Facility complies

with the margin requirements of Regulation U, and other applicable laws and

regulations;

 

(xiv)        Evidence that the following credit facilities extended to

Duke-Weeks and its related operating partnerships have been paid and terminated:

that certain Revolving Credit Facility dated June 30, 2000.

 

(xv)         Such other documents as any Lender or its counsel may have

reasonably requested, the form and substance of which documents shall be

acceptable to the parties and their respective counsel.

 

5.2           Each Advance.

 

The Lenders shall not be required to make any

Advance other than an Advance that, after giving effect thereto and to the

application of the proceeds thereof, does not increase the aggregate amount of

outstanding Advances, unless on the applicable Borrowing Date:

 

(i)            There exists no Default or Unmatured Default;

 

26

 

(ii)           The representations and warranties contained in

Article VI are true and correct as of such Borrowing Date with respect to

the General Partner, the Borrower and to any Subsidiary in existence (as

applicable) on such Borrowing Date, except to the extent any such

representation or warranty is stated to relate solely to an earlier date, in

which case such representation or warranty shall be true and correct on and as

of such earlier date; and

 

(iii)          All legal matters incident to the making of such Advance

shall be satisfactory to the Lenders and their counsel.

 

Each Borrowing

Notice with respect to each such Advance shall constitute a representation and

warranty by the Borrower that the conditions contained in Sections 5.2(i) and

(ii) have been satisfied.  Any Lender

may require a duly completed compliance certificate in substantially the form

of Exhibit F hereto (including all schedules or exhibits) as a condition to

making an Advance; provided that the calculations contained therein shall be

based on the most recent quarterly information available.

 

ARTICLE VI

REPRESENTATIONS

AND WARRANTIES

 

The General Partner

and the Borrower each respectively (unless otherwise noted) represents and

warrants to the Lenders that:

 

6.1           Existence.

 

It is duly

organized, validly existing and in good standing under the laws of the State of

Indiana, with its principal place of business in Indianapolis, Indiana and is

duly qualified as a foreign corporation or partnership, properly licensed (if

required), in good standing and has all requisite authority to conduct its

business in each jurisdiction in which its business is conducted. Each of its

Subsidiaries is duly organized, validly existing and in good standing under the

laws of its jurisdiction of organization and has all requisite authority to

conduct its business in each jurisdiction in which its business is conducted.

 

6.2           Authorization and Validity.

 

It has the power

and authority and legal right to execute and deliver the Loan Documents and to

perform its obligations thereunder.  The

execution and delivery by it of the Loan Documents and the performance of its obligations

thereunder have been duly authorized by proper proceedings, and the Loan

Documents constitute legal, valid and binding obligations of, respectively, the

General Partner or the Borrower enforceable against such entity in accordance

with their terms, except as enforceability may be limited by bankruptcy,

insolvency or similar laws affecting the enforcement of creditors’ rights

generally and general principles of equity.

 

6.3           No Conflict; Government Consent.

 

Neither the

execution and delivery by it of the Loan Documents, nor the consummation of the

transactions therein contemplated, nor compliance with the provisions thereof

will violate any law, rule, regulation, order, writ, judgment, injunction,

decree or award binding on, respectively, the General Partner or the Borrower

or any of such entity’s Subsidiaries or such entity’s or any Subsidiary’s

articles of incorporation, by-laws, certificate of limited partnership or

partnership agreement or the provisions of any indenture, instrument or

agreement to which such entity or any of its Subsidiaries is a party or is

subject, or by which it, or its Property, is bound, or conflict with or

constitute a default thereunder, or result in the creation or imposition of any

Lien in, of or on the Property of such entity or a Subsidiary pursuant to the

terms of any such indenture, instrument or agreement.  No order, consent, approval, license, authorization, or

validation of, or filing, recording or registration with, or exemption by, any

governmental or public body or authority, or any subdivision thereof, is

required to authorize, or is required in connection with the execution,

delivery and performance of, or the legality, validity, binding effect or

enforceability of, any of the Loan Documents.

 

27

 

6.4           Financial Statements; Material

Adverse Change.

 

The March 31,

2001 consolidated financial statements of the General Partner, the Borrower and

their Subsidiaries heretofore delivered to the Lenders were prepared in

accordance with GAAP in effect on the date such statements were prepared and

fairly present, the consolidated financial condition and operations of General

Partner, the Borrower and their Subsidiaries at such date and the consolidated

results of their operations for the period then ended.  Since March 31, 2001, there has been no

change in the business, Property, prospects, condition (financial or otherwise)

or results of operations of the General Partner, the Borrower and their

Subsidiaries which could have a Material Adverse Effect.

 

6.5           Taxes.

 

It and its

Subsidiaries have filed all United States federal tax returns and all other tax

returns which are required to be filed and have paid all taxes due pursuant to

said returns or pursuant to any assessment received by, respectively, the General

Partner or the Borrower or any of its Subsidiaries except such taxes, if any,

as are being contested in good faith and as to which adequate reserves have

been provided.  To the knowledge of

Borrower and the General Partner no tax liens have been filed and no claims are

being asserted with respect to any such taxes. 

To the knowledge of Borrower and the General Partner the charges,

accruals and reserves on the books of the General Partner, the Borrower and its

Subsidiaries in respect of any taxes or other governmental charges are

adequate.

 

6.6           Litigation and Guarantee

Obligations.

 

There is no

litigation, arbitration, governmental investigation, proceeding or inquiry

pending or, to the knowledge of any of its officers, threatened against or

affecting the General Partner, the Borrower or any of their Subsidiaries which

could have a Material Adverse Effect. It has no material contingent obligations

not provided for or disclosed in the financial statements referred to in

Section 7.1.

 

6.7           Subsidiaries.

 

Schedule 1 hereto

contains an accurate list of all of the presently existing Subsidiaries of such

entity, setting forth their respective jurisdictions of incorporation and the

percentage of their respective capital stock owned by it or its Subsidiaries.  All of the issued and outstanding shares of

capital stock of such Subsidiaries have been duly authorized and issued and are

fully paid and non–assessable.

 

6.8           ERISA.

 

The Unfunded

Liabilities of all Single Employer Plans do not in the aggregate exceed

$1,000,000.  Neither it nor any other

member of the Controlled Group has incurred, or is reasonably expected to

incur, any withdrawal liability to Multiemployer Plans in excess of $250,000 in

the aggregate.  Each Plan complies in

all material respects with all applicable requirements of law and regulations,

no Reportable Event has occurred with respect to any Plan, neither it nor any

other members of the Controlled Group has withdrawn from any Plan or initiated

steps to do so, and no steps have been taken to reorganize or terminate any

Plan.

 

6.9           Accuracy of Information.

 

All factual

information heretofore or contemporaneously furnished by or on behalf of such

entity or any of its Subsidiaries to the Administrative Agent or any Lender for

purposes of or in connection with this Agreement or any transaction

contemplated hereby is, and all other such factual information hereafter

furnished by or on behalf of such entity or any of its Subsidiaries to the

Administrative Agent or any Lender will be, true and accurate (taken as a

whole) on the date as of which such information is dated or certified and not

incomplete by omitting to state any material fact necessary to make such

information (taken as a whole) not misleading at such time.

 

28

 

6.10         Margin Stock.

 

It does not hold

any margin stock (as defined in Regulation U).

 

6.11         Material Agreements.

 

Neither it nor any

Subsidiary is a party to any agreement or instrument or subject to any charter

or other corporate restriction which could have a Material Adverse Effect.  Neither it nor any Subsidiary is in default

in the performance, observance or fulfillment of any of the obligations,

covenants or conditions contained in (i) any agreement to which it is a party,

which default could have a Material Adverse Effect or (ii) any agreement or

instrument evidencing or governing Indebtedness.

 

6.12         Compliance With Laws.

 

It and its

Subsidiaries have complied in all material respects, to the best of their

knowledge, with all applicable statutes, rules, regulations, orders and

restrictions of any domestic or foreign government or any instrumentality or

agency thereof, having jurisdiction over the conduct of their respective

businesses or the ownership of their respective Property.  Neither it nor any Subsidiary has received

any notice to the effect that its operations are not in material compliance

with any of the requirements of applicable federal, state and local

environmental, health and safety statutes and regulations or the subject of any

federal or state investigation evaluating whether any remedial action is needed

to respond to a release of any toxic or hazardous waste or substance into the

environment, which non–compliance or remedial action could have a

Material Adverse Effect.

 

6.13         Ownership of Properties.

 

On the date of this

Agreement, it and its Subsidiaries will have good title, free of all Liens

other than those permitted by Section 7.15, to all of the Property and assets

reflected in the financial statements as owned by it.

 

6.14         Investment Company Act.

 

Neither it nor any

Subsidiary is an “investment company” or a company “controlled” by an

“investment company”, within the meaning of the Investment Company Act of 1940,

as amended.

 

6.15         Public Utility Holding Company Act.

 

Neither it nor any

Subsidiary is a “holding company” or a “subsidiary company” of a “holding

company”, or an “affiliate” of a “holding company” or of a “subsidiary company”

of a “holding company”, within the meaning of the Public Utility Holding

Company Act of 1935, as amended.

 

6.16         Solvency.

 

(i)            Immediately after the Closing Date

and immediately following the making of each Loan and after giving effect to

the application of the proceeds of such Loans, (a) the fair value of the assets

of the General Partner, the Borrower and their Subsidiaries on a consolidated

basis, at a fair valuation, will exceed the debts and liabilities,

subordinated, contingent or otherwise, of the General Partner, the Borrower and

their Subsidiaries on a consolidated basis; (b) the present fair saleable value

of the Property of the General Partner, the Borrower and their Subsidiaries on

a consolidated basis will be greater than the amount that will be required to

pay the probable liability of the General Partner, the Borrower and their

Subsidiaries on a consolidated basis on their debts and other liabilities,

subordinated, contingent or otherwise, as such

 

29

 

debts and other

liabilities become absolute and matured; (c) the General Partner, the Borrower

and their Subsidiaries on a consolidated basis will be able to pay their debts

and liabilities, subordinated, contingent or otherwise, as such debts and

liabilities become absolute and matured; and (d) the General Partner, the

Borrower and their Subsidiaries on a consolidated basis will not have

unreasonably small capital with which to conduct the businesses in which they

are engaged as such businesses are now conducted and are proposed to be

conducted after the date hereof.

 

(ii)           It does not intend to, or to permit

any of its Subsidiaries to, and does not believe that it or any of its

Subsidiaries will, incur debts beyond its ability to pay such debts as they

mature, taking into account the timing of and amounts of cash to be received by

it or any such Subsidiary and the timing of the amounts of cash to be payable

on or in respect of its Indebtedness or the Indebtedness of any such

Subsidiary.

 

6.17         Insurance.

 

It and its

Subsidiaries carry insurance on their Projects with financially sound and

reputable insurance companies, in such amounts, with such deductibles and

covering such risks as are customarily carried by companies engaged in similar

businesses and owning similar projects in localities where it and its

Subsidiaries operate, including, without limitation:

 

(i)            Property and casualty insurance

(including coverage for flood and other water damage for any Project located

within a 100-year flood plain) in the amount of the replacement cost of the

improvements at the Project;

 

(ii)           Loss of rental income insurance in

the amount not less than one year’s gross revenues from the Projects; and

 

(iii)          Comprehensive general liability

insurance in the amount of $20,000,000 per occurrence, which may be maintained

through umbrella policies.

 

6.18         REIT Status.

 

The General Partner

is in good standing on the New York Stock Exchange, is qualified as a real

estate investment trust and currently is in compliance with all applicable

provisions of the Code.

 

6.19         Environmental Matters.

 

Each of the following

representations and warranties is true and correct on and as of the Closing

Date except to the extent that the facts and circumstances giving rise to any

such failure to be so true and correct, in the aggregate, could not reasonably

be expected to have a Material Adverse Effect:

 

(i)            To the best knowledge of,

respectively, the General Partner or the Borrower, the Projects of such entity

and its Subsidiaries do not contain, and have not previously contained, any

Materials of Environmental Concern in amounts or concentrations which

constitute or constituted a violation of, or could reasonably give rise to

liability under, Environmental Laws.  In

making this statement, General Partner and Borrower are assuming (except to the

extent that either of them has actual knowledge to the contrary) that any

Person handling any Materials of Environmental Concern at any Project will do

so in a reasonable manner and in accordance with all legal requirements.

 

(ii)           To the best knowledge of such entity,

the Projects of such entity and its Subsidiaries and all operations at the

Projects are in compliance, and have in the last two years been in compliance,

with all applicable Environmental Laws, and there is no contamination at, under

or about the Projects of such entity and its Subsidiaries, or violation of any

Environmental Law with respect to the Projects of such entity and its

Subsidiaries.

 

30

(iii)          Neither it nor any of its Subsidiaries

has received any notice of violation, alleged violation, non-compliance,

liability or potential liability regarding environmental matters or compliance

with Environmental Laws with regard to any of the Projects, nor does it have

knowledge or reason to believe that any such notice will be received or is

being threatened.

 

(iv)          To the best knowledge of such entity,

Materials of Environmental Concern have not been transported or disposed of

from the Projects of such entity and its Subsidiaries in violation of, or in a

manner or to a location which could reasonably give rise to liability under,

Environmental Laws, nor have any Materials of Environmental Concern been

generated, treated, stored or disposed of at, on or under any of the Projects

of such entity and its Subsidiaries in violation of, or in a manner that could

give rise to liability under, any applicable Environmental Laws.

 

(v)           No judicial proceedings or

governmental or administrative action is pending, or, to the knowledge of such

entity, threatened, under any Environmental Law to which such entity or any of

its Subsidiaries is or will be named as a party with respect to the Projects of

such entity and its Subsidiaries, nor are there any consent decrees or other

decrees, consent orders, administrative order or other orders, or other administrative

of judicial requirements outstanding under any Environmental Law with respect

to the Projects of such entity and its Subsidiaries.

 

(vi)          To the best knowledge of such entity,

there has been no release or threat of release of Materials of Environmental

Concern at or from the Projects of such entity and its Subsidiaries, or arising

from or related to the operations of such entity and its Subsidiaries in

connection with the Projects in violation of or in amounts or in a manner that

could give rise to liability under Environmental Laws.

 

6.20         Unencumbered Assets.

 

Schedule 3 hereto contains a complete and

accurate description of Unencumbered Assets as of the Closing Date.

 

ARTICLE VII

COVENANTS

 

During the term of

this Agreement, unless, with respect to Sections 7.20(iii), (iv) and (v),

the Required Lenders including the Arranger and, with respect to all other

Sections in this Article VII, the Required Lenders shall otherwise consent

in writing:

 

7.1           Financial Reporting.

 

The General Partner and the Borrower will

maintain, for themselves and each Subsidiary, a system of accounting

established and administered in accordance with GAAP, and furnish to the

Lenders:

 

(i)            As soon as available, but in any event not later than 45

days after the close of each fiscal quarter, for the General Partner

(consolidated with the Borrower and their Subsidiaries), an unaudited

consolidated balance sheet as of the close of each such period and the related

unaudited consolidated statements of income and retained earnings and of cash

flows of the General Partner, the Borrower and their Subsidiaries for such

period and the portion of the fiscal year through the end of such period,

setting forth in each case in comparative form the figures for the previous

year, all certified by the General Partner’s chief financial officer or chief

accounting officer;

 

(ii)           As soon as available, but in any event not later than 45

days after the close of each fiscal quarter, for the General Partner, the

Borrower and their Subsidiaries, related reports in form and substance

satisfactory to the Lenders, all certified by the entity’s chief financial

officer or chief accounting officer, including a statement of Funds From

Operations, a description of Unencumbered Assets, a statement of Guarantee Obligations,

including a description of any guaranties of Investment Affiliate Debt excluded

from Guarantee Obligations pursuant to the definition thereof, along with a

 

31

 

certification that the

conditions for exclusion are met and such back-up information as may be

requested by Administrative Agent, a listing of capital expenditures, a report

listing and describing all newly acquired Projects, including their Property

Operating Income, cost and secured or unsecured Indebtedness assumed in

connection with such acquisition, if any, summary Project information for all

Projects, including, without limitation, their Property Operating Income,

occupancy rates, square footage, property type and date acquired or built, and

such other information as may be requested;

 

(iii)          As soon as available, but in any event not later than 90

days after the close of each fiscal year, for the General Partner (consolidated

with the Borrower and their Subsidiaries), audited financial statements,

including a consolidated balance sheet as at the end of such year and the

related consolidated statements of income and retained earnings and of cash

flows for such year, setting forth in each case in comparative form the figures

for the previous year, reported on by KPMG Peat Marwick LLP (or other

independent certified public accountants of nationally recognized standing

acceptable to Administrative Agent) without a “going concern” or like

qualification or exception, or qualification arising out of the scope of the

audit;

 

(iv)          As soon as available, but in any event not later than 90

days after the close of each fiscal year, for the General Partner, the Borrower

and their Subsidiaries, related reports in form and substance satisfactory to

the Lenders, certified by the entity’s chief financial officer or chief

accounting officer, including reports containing taxable income and Property

Operating Income for each individual property;

 

(v)           Together with the quarterly and annual financial

statements required hereunder, a compliance certificate in substantially the

form of Exhibit F hereto signed by the General Partner’s and the

Borrower’s chief financial officers or chief accounting officers showing the

calculations and computations necessary to determine compliance with this

Agreement and stating that no Default or Unmatured Default exists, or if any

Default or Unmatured Default exists, stating the nature and status thereof;

 

(vi)          As soon as possible and in any event within 10 days after

the General Partner or the Borrower knows that any Reportable Event has

occurred with respect to any Plan, a statement, signed by the chief financial

officer of such entity, describing said Reportable Event and the action which

such entity proposes to take with respect thereto;

 

(vii)         As soon as possible and in any event within 10 days after

receipt by the General Partner or the Borrower, a copy of (a) any notice or

claim to the effect that the General Partner, the Borrower or any of their

Subsidiaries is or may be liable to any Person as a result of the release by

such entity, any of its Subsidiaries, or any other Person of any toxic or

hazardous waste or substance into the environment, and (b) any notice alleging

any violation of any federal, state or local environmental, health or safety

law or regulation by the General Partner or the Borrower or any of their

Subsidiaries, which, in either case, could have a Material Adverse Effect;

 

(viii)        Promptly upon the furnishing thereof to

the shareholders of the General Partner or the partners of the Borrower, copies

of all financial statements, reports and proxy statements so furnished;

 

(ix)           Promptly upon the filing thereof, copies of all

registration statements and annual, quarterly, monthly or other reports and any

other public information which the General Partner, the Borrower or any of

their Subsidiaries files with the Securities Exchange Commission;

 

(x)            Promptly upon the distribution thereof to the press or

the public, copies of all press

releases; and

 

(xi)           Such other information (including, without limitation, financial statements for the Borrower

and non–financial information) as the Administrative Agent or any Lender

may from time to time reasonably request.

 

32

 

7.2           Use of Proceeds.

 

The General Partner

and the Borrower will, and will cause each of their Subsidiaries to, use the

proceeds of the Advances for the general business purposes of the Borrower,

including working capital needs and interim financing for property acquisitions

of new Projects, construction of new improvements or expansions of existing

improvements on Projects, and to repay outstanding Advances. The General

Partner and the Borrower will not, nor will they permit any Subsidiary to, use

any of the proceeds of the Advances (i) to purchase or carry any “margin stock”

(as defined in Regulation G or U) or (ii) to fund any purchase of, or offer

for, any Capital Stock of any Person, unless such Person has consented to such

offer prior to any public announcements relating thereto and the Required

Lenders have consented to such use of the proceeds of such Advance.

 

7.3           Notice of Default.

 

The General Partner

and the Borrower will give, and will cause each of their Subsidiaries to give,

prompt notice in writing to the Lenders of the occurrence of (i) any Default or

Unmatured Default and (ii) of any other development, financial or otherwise,

which could have a Material Adverse Effect.

 

7.4           Conduct of Business.

 

The General Partner

and the Borrower will do, and will cause each of their Subsidiaries to do, all

things necessary to remain duly incorporated and/or duly qualified, validly

existing and in good standing as a real estate investment trust, corporation,

general partnership or limited partnership, as the case may be, in its

jurisdiction of incorporation/formation and maintain all requisite authority to

conduct its business in each jurisdiction in which its business is conducted

and to carry on and conduct its businesses in substantially the same manner as

it is presently conducted and, specifically, neither the General Partner, the

Borrower nor their respective Subsidiaries will undertake any business other

than the acquisition, development, ownership, management, operation and leasing

of office, industrial and retail properties and ancillary businesses

specifically related thereto, except that the Borrower and its Subsidiaries may

invest in (i) land, (ii) non-office/industrial/retail property holdings, (iii)

stock holdings, (iv) mortgages, (v) passive non-real estate investments,  and (vi) joint ventures and partnerships,

provided that the total investment in any one of the first five of the

foregoing categories does not exceed ten percent (10%) of Market

Capitalization, the total investment in the sixth category (joint ventures and

partnerships) does not exceed 20% of Market Capitalization, and the total

investment in all of the foregoing investment categories in the aggregate is

less than or equal to twenty-five percent (25%) of Market Capitalization.  For the purposes of this Section 7.4, joint

ventures and partnerships shall be valued in accordance with GAAP, non-revenue

generating investments such as land and stock holdings shall be valued at the

lower of acquisition cost or market value, and the value of all other investments

shall be determined by capitalizing Property Operating Income from these assets

at a rate of 9.5%.  In the event of any

disagreement as to how to value an investment, the judgment of the

Administrative Agent shall prevail.

 

7.5           Taxes.

 

The General Partner

and the Borrower will pay, and will cause each of their Subsidiaries to pay,

when due all taxes, assessments and governmental charges and levies upon them

of their income, profits or Projects, except those which are being contested in

good faith by appropriate proceedings and with respect to which adequate

reserves have been set aside.

 

7.6           Insurance.

 

The General Partner

and the Borrower will, and will cause each of their Subsidiaries to, maintain

with financially sound and reputable insurance companies insurance on all their

Property in such amounts and covering such risks as is consistent with sound

business practice, and the General Partner and the Borrower will furnish to any

Lender upon request full information as to the insurance carried.

 

33

 

7.7           Compliance with Laws.

 

The General Partner

and the Borrower will, and will cause each of their Subsidiaries to, comply

with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees

or awards to which they may be subject.

 

7.8           Maintenance of Properties.

 

The General Partner

and the Borrower will, and will cause each of their Subsidiaries to, do all

things necessary to maintain, preserve, protect and keep its Property in good

repair, working order and condition, and make all necessary and proper repairs,

renewals and replacements so that their businesses carried on in connection

therewith may be properly conducted at all times.

 

7.9           Inspection.

 

The General Partner

and the Borrower will, and will cause each of their Subsidiaries to, permit the

Lenders, by their respective representatives and agents, to inspect any of the

Projects, corporate books and financial records of the General Partner, the

Borrower and each of their Subsidiaries, to examine and make copies of the

books of accounts and other financial records of the General Partner, the

Borrower and each of their Subsidiaries, and to discuss the affairs, finances

and accounts of the General Partner, the Borrower and each of their Subsidiaries,

and to be advised as to the same by, their respective officers at such

reasonable times and intervals as the Lenders may designate.

 

7.11         Maintenance of Status.

 

The General Partner

shall at all times (i) remain a corporation listed and in good standing on

the New York Stock Exchange, and (ii) maintain its status as a real estate

investment trust in compliance with all applicable provisions of the Code.

 

7.12         Dividends.

 

Provided there is

not a continuing Default under Section 8.1 or Section 8.2, and there

is not a continuing Default under Section 8.3 relating to a breach of any of

the covenants contained in Section 7.20, the General Partner and its

Subsidiaries shall be permitted to declare and pay dividends on their Capital

Stock from time to time in amounts determined by the General Partner, provided,

however, that subject to the terms of the next sentence, in no event shall the

General Partner or any of its Subsidiaries declare or pay dividends on their

Capital Stock if dividends paid in any period of four fiscal quarters, in the

aggregate, would exceed 90% of Funds From Operations for such period.  Notwithstanding the foregoing, the General

Partner shall be permitted to distribute whatever amount of dividends is

necessary to maintain its tax status as a real estate investment trust,

provided there is not a continuing Default under Sections 8.1 or 8.2.

 

7.13         Merger; Sale of Assets.

 

The General Partner

and the Borrower will not, nor will they permit any of their Subsidiaries to,

enter into any merger, consolidation, reorganization or liquidation or transfer

or otherwise dispose of all or a Substantial Portion of their Property, except

for such transactions that occur between Wholly–Owned Subsidiaries,

provided, however, the General Partner or the Borrower may merge with or

acquire other companies as partnerships so long as:

 

(i)            After giving effect to such merger or acquisition, no

provision of this Agreement will have been violated;

 

(ii)           the General Partner and the Borrower will be surviving entities;

and

 

(iii)          such merger is not accomplished through a hostile takeover.

 

34

 

The Borrower will

notify all of the Lenders of all material acquisitions, dispositions, mergers

or asset purchases regardless of whether or not the Required Lenders must first

give their written consent.

 

7.13         General Partner’s Ownership and

Control of Borrower.

 

The General Partner

will not relinquish, and will not allow any reduction in, its ownership or

control of the Borrower and will not allow or suffer to exist any pledge, other

encumbrance or the conversion to limited partnership interests of any of the

general partnership interests in the Borrower; provided that (i) the General

Partner’s ownership of the Borrower may be reduced to 67% by the issuance of

additional limited partnership units so long as the General Partner remains the

sole general partner of Borrower and (ii) the General Partner’s ownership of

the Borrower may be reduced to and/or below 67% by the conversion of a portion

of the General Partner’s general partnership interest in the Borrower into

limited partnership interests and the transfer of such interests to a wholly

owned Subsidiary of the General Partner so long as (a) the General Partner

remains the sole general partner of Borrower and (b) such Subsidiary is a

Subsidiary Guarantor and does not own any material assets other than its

limited partnership interest in the Borrower.

 

7.14         Sale and Leaseback.

 

The General Partner

and the Borrower will not, nor will they permit any of their Subsidiaries to,

sell or transfer any of its Projects in order to concurrently or subsequently

lease as lessee such or similar Projects.

 

7.15         Liens.

 

The General Partner

and the Borrower will not, nor will they permit any of their Subsidiaries to,

create, incur, or suffer to exist any Lien in, of or on the Property of the

General Partner, the Borrower or any of their Subsidiaries, except:

 

(i)            Liens for taxes, assessments or governmental charges or

levies on their Property if the same shall not at the time be delinquent or

thereafter can be paid without penalty, or are being contested in good faith

and by appropriate proceedings and for which adequate reserves shall have been

set aside on their books;

 

(ii)           Liens imposed by law, such as carriers’, warehousemen’s

and mechanics’ liens and other similar liens arising in the ordinary course of

business which secure payment of obligations not more than 60 days past due or

which are being contested in good faith by appropriate proceedings and for

which adequate reserves shall have been set aside on its books;

 

(iii)          Liens arising out of pledges or deposits under worker’s

compensation laws, unemployment insurance, old age pensions, or other social

security or retirement benefits, or similar legislation;

 

(iv)          Utility easements, building restrictions and such other

encumbrances or charges against real property as are of a nature generally

existing with respect to properties of a similar character and which do not in

any material way affect the marketability of the same or interfere with the use

thereof in the business of the General Partner, the Borrower or their

Subsidiaries;

 

(v)           Liens existing on the date hereof and described in

Schedule 2 hereto; and

 

(vi)          Liens arising in connection with any Indebtedness permitted

hereunder to the extent such Liens will not result in a violation of any of the

provisions of this Agreement.

 

Liens permitted

pursuant to this Section 7.15 shall be deemed to be “Permitted Liens”.

 

35

 

7.16         Affiliates.

 

The General Partner

and the Borrower will not, nor will they permit any of their Subsidiaries to,

enter into any transaction (including, without limitation, the purchase or sale

of any Property or service) with, or make any payment or transfer to, any

Affiliate except in the ordinary course of business and pursuant to the

reasonable requirements of the General Partner’s, the Borrower’s or such

Subsidiary’s business and upon fair and reasonable terms no less favorable to

the General Partner, the Borrower or such Subsidiary than the General Partner,

the Borrower or such Subsidiary would obtain in a comparable arms–length

transaction.

 

7.17         Interest Rate Hedging.

 

The General Partner

and the Borrower will not enter into or remain liable upon, nor will they

permit any Subsidiary to enter into or remain liable upon, any agreements,

devices or arrangements designed to protect at least one of the parties thereto

from the fluctuations of interest rates, exchange rates or forward rates

applicable to such party’s assets, liabilities or exchange transactions,

including, but not limited to, interest rate exchange agreements, forward

currency exchange agreements, interest rate cap or collar protection

agreements, forward rate currency or interest rate options unless such

agreement, device or arrangement was entered into by the General Partner or the

Borrower in the ordinary course of its business for the purpose of hedging

interest rate risk to the General Partner or the Borrower.

 

7.18         Variable Interest Indebtedness.

 

The General Partner

shall not at any time permit the outstanding principal balance of Indebtedness

of the General Partner and the Borrower and their Subsidiaries on a

consolidated basis which bears interest at an interest rate that is not fixed

through the maturity date of such Indebtedness to exceed $950,000,000.

 

7.19         Consolidated Net Worth.

 

The General

Partner, as of the last day of any fiscal quarter, shall maintain a

Consolidated Net Worth of not less than the sum of (i) $3,000,000,000,

plus (ii) seventy-five percent (75%) of the aggregate proceeds received by

the General Partner or the Borrower (net of customary related fees and

expenses) in connection with any offering of stock in the General Partner or

partnership interests in the Borrower after June 30, 2000, but not including

proceeds from stock offerings where such proceeds are being utilized to refund

prior stock offerings.

 

7.20         Indebtedness and Cash Flow

Covenants.

 

The General

Partner on a consolidated basis with the Borrower and their Subsidiaries shall

not, as of the last day of any fiscal quarter, permit:

 

(i)            the ratio of EBITDA to Interest Expense to be less than

2.25 to 1.0 for the quarter then ended;

 

(ii)           the ratio of Adjusted EBITDA to Fixed Charges to be less

than 1.75 to 1.0 for the quarter then ended;

 

(iii)          Total Liabilities to exceed fifty-five percent (55%) of

Market Capitalization;

 

(iv)          Consolidated Total Indebtedness to exceed fifty percent

(50%) of Market Capitalization;

 

(v)           the Value of Unencumbered Assets to be less than 1.85

times the Consolidated Senior Unsecured Indebtedness;

 

36

 

(vi)          the ratio obtained by dividing:  (a) the Property Operating Income from all Unencumbered Assets by

(b) Debt Service on Consolidated Unsecured Indebtedness to be less than 2.00 to

1.0 for the quarter then ended; or

 

(vii)         Consolidated Secured Indebtedness to exceed thirty-five

percent (35%) of Market Capitalization.

 

7.21         Environmental Matters.

 

The General Partner

and the Borrower will and will cause each of their Subsidiaries to:

 

(i)            comply with, and use its best

efforts to ensure compliance by all tenants and subtenants, if any, with, all

applicable Environmental Laws

and obtain and comply with and maintain, and use its best efforts to ensure

that all tenants and subtenants obtain and comply with and maintain, any and

all licenses, approvals, notifications, registrations or permits required by

applicable Environmental Laws, except to the extent that failure to do so could

not be reasonably expected to have a Material Adverse Effect;

 

(ii)           conduct and complete all investigations, studies, sampling

and testing, and all remedial, removal and other actions required under

Environmental Laws and promptly comply in all material respects with all lawful

orders and directives of all Governmental Authorities regarding Environmental

Laws, except to the extent that (a) the same are being contested in good

faith by appropriate proceedings and the pendency of such proceedings could not

be reasonably expected to have a Material Adverse Effect, or (b) the

General Partner has determined in good faith that contesting the same is not in

the best interests of the General Partner, the Borrower and their Subsidiaries and

the failure to contest the same could not be reasonably expected to have a

Material Adverse Effect;

 

(iii)          defend, indemnify and hold harmless the Administrative

Agent and each Lender, and their respective employees, agents, officers and

directors, from and against any claims, demands, penalties, fines, liabilities,

settlements, damages, costs and expenses of whatever kind or nature known or

unknown, contingent or otherwise, arising out of, or in any way relating to the

violation of, noncompliance with or liability under any Environmental Laws

applicable to the operations of the General Partner, the Borrower, their

Subsidiaries or the Projects, or any orders, requirements or demands of

Governmental Authorities related thereto, including, without limitation, attorney’s

and consultant’s fees, investigation and laboratory fees, response costs, court

costs and litigation expenses, except to the extent that any of the foregoing

arise out of the gross negligence or willful misconduct of the party seeking

indemnification therefor; and

 

(iv)          prior to the acquisition of a new Project after the Closing

Date, perform or cause to be performed an environmental investigation, which investigation shall at a minimum comply with

the specifications and procedures attached hereto as Exhibit G.  In connection with any such investigation,

Borrower shall cause to be prepared a report of such investigation, to be made

available to any Lenders upon request, for informational purposes and to assure

compliance with the specifications and procedures.

 

The indemnity

contained in (iii) above shall continue in full force and effect regardless of

the termination of this Agreement.  In

connection with any investigation pursuant to (iv) above, Borrower shall cause

to be prepared a report of such investigation, to be made available to any

Lenders upon request, for informational purposes and to assure compliance with

the specifications and procedures.

 

37

 

7.22         Control of the General Partner.

 

The General

Partner’s management shall directly or indirectly control the ownership of a

minimum 2,000,000 common shares of the General Partner (or equivalent operating

partnership units exchangeable for common shares), adjusted for stock splits,

and the General Partner’s management and directors shall directly or indirectly

control ownership of a minimum 3,000,000 common shares of the General Partner

(or equivalent operating partnership units exchangeable for common shares),

adjusted for stock splits.

 

7.23         Borrower’s Partnership Agreement.

 

The General Partner

shall not consent to any changes to Borrower’s partnership agreement, other

than changes in the ordinary course of business, without the prior written

consent of the Lead Agents.

 

7.24         General Partner’s Assets.

 

The General Partner

shall not invest in or own any material assets directly other than its

partnership interest in Borrower, or its ownership interest in a Wholly Owned

Subsidiary whose only material asset is a partnership interest in Borrower.

 

7.25         Notice of Rating Change.

 

The Borrower shall

notify the Administrative Agent promptly if there is any change in the long

term unsecured debt rating from Moody’s, Fitch or S&P of either the General

Partner or the Borrower.

 

7.26         Delivery of Subsidiary Guaranties.

 

Borrower may elect

to cause any of its Subsidiaries to execute and deliver to the Administrative

Agent a Subsidiary Guaranty.

 

ARTICLE

VIII

DEFAULTS

 

The occurrence of

any one or more of the following events shall constitute a Default:

 

8.1           Nonpayment

of any principal payment on any Note when due.

 

8.2           Nonpayment

of interest upon any Note or of any Facility Fee or other payment Obligations

under any of the Loan Documents within five (5) Business Days after the same

becomes due.

 

8.3           The

breach of any of the terms or provisions of Sections 7.2, 7.10 through 7.20,

7.23 through 7.24.

 

8.4           Any

representation or warranty made or deemed made by or on behalf of the General

Partner, the Borrower or any of their Subsidiaries to the Lenders or the

Administrative Agent under or in connection with this Agreement, any Loan, or

any certificate or information delivered in connection with this Agreement or

any other Loan Document shall be materially false on the date as of which made.

 

8.5           The

breach (other than a breach which constitutes a Default under Section 8.1, 8.2,

8.3 or 8.4) of any of the terms or provisions of this Agreement which is not

remedied within fifteen (15) days after written notice from the Administrative

Agent or any Lender.

 

38

 

8.6           Failure

of the General Partner, the Borrower or any of their Subsidiaries to pay when

due any Indebtedness aggregating in excess of $10,000,000 for which liability

is not limited to specific pledged collateral.

 

8.7           The

General Partner, the Borrower or any Subsidiary having more than $10,000,000 of

Equity Value shall (i) have an order for relief entered with respect to it

under the Federal bankruptcy laws as now or hereafter in effect, (ii) make an

assignment for the benefit of creditors, (iii) apply for, seek, consent to, or

acquiesce in, the appointment of a receiver, custodian, trustee, examiner,

liquidator or similar official for it or any Substantial Portion of its

Property, (iv) institute any proceeding seeking an order for relief under the

Federal bankruptcy laws as now or hereafter in effect or seeking to adjudicate

it as a bankrupt or insolvent, or seeking dissolution, winding up, liquidation,

reorganization, arrangement, adjustment or composition of it or its debts under

any law relating to bankruptcy, insolvency or reorganization or relief of

debtors or fail to file an answer or other pleading denying the material

allegations of any such proceeding filed against it, (v) take any corporate

action to authorize or effect any of the foregoing actions set forth in this

Section 8.7, (vi) fail to contest in good faith any appointment or

proceeding described in Section 8.8 or (vii) not pay, or admit in

writing its inability to pay, its debts generally as they become due.

 

8.8           A

receiver, trustee, examiner, liquidator or similar official shall be appointed

for the General Partner, the Borrower or any Subsidiary having more than

$10,000,000 of Equity Value or any Substantial Portion of its Property, or a

proceeding described in Section 8.7(iv) shall be instituted against the

General Partner, the Borrower or any such Subsidiary and such appointment

continues undischarged or such proceeding continues undismissed or unstayed for

a period of thirty (30) consecutive days.

 

8.9           Any

court, government or governmental agency shall condemn, seize or otherwise

appropriate, or take custody or control of (each a “Condemnation”), all or any

portion of the Projects of the Borrower and its Subsidiaries which, when taken

together with all other Property of the Borrower and its Subsidiaries so

condemned, seized, appropriated, or taken custody or control of, during the

twelve–month period ending with the month in which any such Condemnation

occurs, constitutes a Substantial Portion of their Property.

 

8.10         The

General Partner, the Borrower or any of their Subsidiaries shall fail within

sixty (60) days to pay, bond or otherwise discharge any judgments or orders for

the payment of money in an amount which, when added to all other judgments or

orders outstanding against the General Partner, the Borrower or any Subsidiary

would exceed $10,000,000 in the aggregate, which have not been stayed on appeal

or otherwise appropriately contested in good faith.

 

8.11         The

General Partner, the Borrower or any other member of the Controlled Group shall

have been notified by the sponsor of a Multiemployer Plan that it has incurred

withdrawal liability to such Multiemployer Plan in an amount which, when

aggregated with all other amounts required to be paid to Multiemployer Plans by

the General Partner, the Borrower or any other member of the Controlled Group

as withdrawal liability (determined as of the date of such notification),

exceeds $250,000 or requires payments exceeding $100,000 per annum.

 

8.12         The

General Partner, the Borrower or any other member of the Controlled Group shall

have been notified by the sponsor of a Multiemployer Plan that such

Multiemployer Plan is in reorganization or is being terminated, within the

meaning of Title IV of ERISA, if as a result of such reorganization or

termination the aggregate annual contributions of the General Partner, the

Borrower and the other members of the Controlled Group (taken as a whole) to

all Multiemployer Plans which are then in reorganization or being terminated have

been or will be increased over the amounts contributed to such Multiemployer

Plans for the respective plan years of each such Multiemployer Plan immediately

preceding the plan year in which the reorganization or termination occurs by an

amount exceeding $250,000.

 

8.13         Failure

to remediate within the time period permitted by law or governmental order,

after all administrative hearings and appeals have been concluded (or within a

reasonable time in light of the nature of the problem if no specific time period

is so established), material environmental problems related to Projects of the

Borrower and its Subsidiaries if the affected Projects have an aggregate book

value in excess of $20,000,000.

 

39

 

8.14         The

occurrence of any default under any Loan Document or the breach of any of the

terms or provisions of any Loan Document, which default or breach continues

beyond any period of grace therein provided.

 

8.15         The

revocation or attempted revocation of the Guaranty.

 

8.16         The

occurrence of a default under (i) that certain Third Amended and Restated

Revolving Credit Agreement dated as of February 28, 2001 among the Borrower,

the General Partner, Bank One, NA, individually and as administrative agent,

and various other lenders and/or (ii) that certain $85,000,000 Syndicated

Term Loan Agreement dated as of July 2, 1999 among Borrower, General

Partner Wachovia Bank, N.A. as agent, and the various other lenders identified

therein, or any amendment or restatement of the foregoing or agreement entered

into to refinance the loans made pursuant to any of the foregoing agreements.

 

ARTICLE IX

ACCELERATION,

WAIVERS, AMENDMENTS AND REMEDIES

 

9.1           Acceleration.

 

If any Default

described in Section 8.7 or 8.8 occurs with respect to the Borrower, the

obligations of the Lenders to make Loans hereunder shall automatically

terminate and the Obligations shall immediately become due and payable without

any election or action on the part of the Administrative Agent or any Lender.  If any other Default occurs, the Required

Lenders may terminate or suspend the obligations of the Lenders to make Loans

hereunder or declare the Obligations to be due and payable, or both, whereupon

the Obligations shall become immediately due and payable, without presentment,

demand, protest or notice of any kind, all of which the Borrower hereby

expressly waives.

 

If, within thirty

(30) days after acceleration of the maturity of the Obligations or termination

of the obligations of the Lenders to make Loans hereunder as a result of any

Default (other than any Default as described in Section 8.7 or 8.8 with respect

to the Borrower) and before any judgment or decree for the payment of the

Obligations shall have been obtained or entered, the Required Lenders (in their

sole discretion) shall so direct, the Administrative Agent shall, by notice to

the Borrower, rescind and annul such acceleration and/or termination.

 

9.2           Amendments.

 

Subject to the provisions of this Article IX, the Required Lenders (or

the Administrative Agent with the consent in writing of the Required Lenders)

and the Borrower may enter into agreements supplemental hereto for the purpose

of adding or modifying any provisions to the Loan Documents or changing in any

manner the rights of the Lenders or the Borrower hereunder or waiving any

Default hereunder; provided, however, that no such supplemental agreement

shall, without the consent of the Lead Agents, waive any Default under, or

modify or amend Sections 7.20(iii), (iv) or (v); and provided, further,

however, that no such supplemental agreement shall, without the consent of all

Lenders:

(i)            Extend the Facility Termination Date (other than pursuant

to Section 2.24 of this Agreement) or forgive all or any portion of the

principal amount of any Loan or accrued interest thereon or the Facility Fee,

reduce the Applicable Margins on the underlying interest rate options or otherwise modify or add to such

interest rate options, or extend the time of payment of any of the Obligations.

 

(ii)           Release the General Partner from the Guaranty, or

materially modify the Guaranty or waive a material provision of the Guaranty.

 

(iii)          Reduce the percentage

specified in the definition of Required Lenders.

 

(iv)          Increase the amount

of the Aggregate Commitment.

 

40

 

(v)           Permit the Borrower to assign or allow another Person to

assume its rights under this Agreement.

 

(vii)         Amend this Section 9.2.

 

No amendment of any

provision of this Agreement relating to the Administrative Agent shall be

effective without the written consent of the Administrative Agent.

 

9.3           Preservation of Rights.

 

No delay or

omission of the Lenders or the Administrative Agent to exercise any right under

the Loan Documents shall impair such right or be construed to be a waiver of

any Default or an acquiescence therein, and the making of a Loan

notwithstanding the existence of a Default or the inability of the Borrower to

satisfy the conditions precedent to such Loan shall not constitute any waiver

or acquiescence.  Any single or partial

exercise of any such right shall not preclude other or further exercise thereof

or the exercise of any other right, and no waiver, amendment or other variation

of the terms, conditions or provisions of the Loan Documents whatsoever shall

be valid unless in writing signed by the Lenders required pursuant to Section

9.2, and then only to the extent in such writing specifically set forth.  All remedies contained in the Loan Documents

or by law afforded shall be cumulative and all shall be available to the

Administrative Agent and the Lenders until this Agreement has been terminated

and the Obligations (if any) have been paid in full.

 

ARTICLE X

GENERAL PROVISIONS

 

10.1         Survival of Representations.

 

All representations

and warranties of the Borrower contained in this Agreement shall survive

delivery of the Notes and the making of the Loans herein contemplated.

 

10.2         Governmental Regulation.

 

Anything contained

in this Agreement to the contrary notwithstanding, no Lender shall be obligated

to extend credit to the Borrower in violation of any limitation or prohibition

provided by any applicable statute or regulation.

 

10.3         Taxes.

 

Any taxes

(excluding federal, state and local income or franchise or other taxes on the

overall net income of any Lender) or other similar assessments or charges made

by any governmental or revenue authority in respect of the Loan Documents shall

be paid by the Borrower, together with interest and penalties, if any.

 

10.4         Headings.

 

Section headings in

the Loan Documents are for convenience of reference only, and shall not govern

the interpretation of any of the provisions of the Loan Documents.

 

10.5         Entire Agreement.

 

The Loan Documents

embody the entire agreement and understanding among the Borrower, the General

Partner, the Administrative Agent and the Lenders and supersede all prior

commitments, agreements and understandings among the Borrower, the

Administrative Agent and the Lenders relating to the subject matter thereof,

except for the agreement of the Borrower to pay certain fees to the

Administrative Agent and the agreement of the Administrative Agent to pay

certain fees to the Lenders.

 

41

 

10.6         Several Obligations; Benefits of

this Agreement.

 

The respective

obligations of the Lenders hereunder are several and not joint and no Lender

shall be the partner or agent of any other (except to the extent to which the

Administrative Agent is authorized to act as such).  The failure of any Lender to perform any of its obligations

hereunder shall not relieve any other Lender from any of its obligations

hereunder.  This Agreement shall not be

construed so as to confer any right or benefit upon any Person other than the

parties to this Agreement and their respective successors and assigns.

 

10.7         Expenses; Indemnification.

 

The Borrower shall

reimburse the Indemnified Parties on demand for any costs, internal charges and

reasonable out–of–pocket expenses (including, without limitation,

all reasonable fees for consultants and reasonable fees and expenses for

attorneys for the Indemnified Parties, which attorneys may be employees of the

Indemnified Parties) paid or incurred by the Indemnified Parties (whether in

their capacity as arranger, or, in the case of Bank One, NA in its capacity as

Administrative Agent) in connection with the preparation, negotiation,

execution, delivery, review, amendment, modification, and administration of the

Loan Documents.  The Borrower also

agrees to reimburse the Indemnified Parties and the Lenders for any costs,

internal charges and reasonable out–of–pocket expenses (including,

without limitation, all reasonable fees and expenses for attorneys for the

Indemnified Parties and the Lenders, which attorneys may be employees of the

Indemnified Parties or the Lenders) paid or incurred by the Indemnified Parties

(whether in their capacity as arranger, or, in the case of Bank One, NA, in its

capacity as Administrative Agent) or any Lender in connection with the

collection and enforcement of the Loan Documents (including, without

limitation, any workout).  The Borrower

further agrees to indemnify the Indemnified Parties and each Lender and their

directors, officers and employees against all losses, claims, damages,

penalties, judgments, liabilities and reasonable expenses (including, without

limitation, all expenses of litigation or preparation therefor whether or not

such entity is a party thereto) which any of them may pay or incur arising out

of or relating to this Agreement, the other Loan Documents, the Projects, the

transactions contemplated hereby or the direct or indirect application or

proposed application of the proceeds of any Loan hereunder. The obligations of

the Borrower under this Section 10.7 shall survive the termination of this

Agreement.

 

10.8         Numbers of Documents.

 

All statements,

notices, closing documents, and requests hereunder shall be furnished to the

Administrative Agent with sufficient counterparts so that the Administrative

Agent may furnish one to each of the Lenders.

 

10.9         Accounting.

 

Except as provided

to the contrary herein, all accounting terms used herein shall be interpreted

and all accounting determinations hereunder shall be made in accordance with

GAAP.

 

10.10       Severability of Provisions.

 

Any provision in

any Loan Document that is held to be inoperative, unenforceable, or invalid in

any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable,

or invalid without affecting the remaining provisions in that jurisdiction or

the operation, enforceability, or validity of that provision in any other

jurisdiction, and to this end the provisions of all Loan Documents are declared

to be severable.

 

42

 

10.11       Nonliability of Lenders.

 

The relationship

between the General Partner and the Borrower, on the one hand, and the Lenders,

the Arranger and the Administrative Agent, on the other, shall be solely that

of borrower and lender. Neither the Administrative Agent, the Arranger nor any

Lender shall have any fiduciary responsibilities to the General Partner and the

Borrower. Neither the Administrative Agent, the Arranger nor any Lender

undertakes any responsibility to the Borrower to review or inform the Borrower

of any matter in connection with any phase of the Borrower’s business or

operations.

 

10.12       Publicity.

 

The Lenders

shall  have the right to do a tombstone

publicizing the transaction contemplated hereby without the consent of the

Borrower or General Partner.

 

10.13       CHOICE OF LAW.

 

THE LOAN DOCUMENTS

(OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL

BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF

CONFLICTS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS

APPLICABLE TO NATIONAL BANKS.

 

10.14       CONSENT TO JURISDICTION.

 

THE GENERAL PARTNER

AND THE BORROWER EACH HEREBY IRREVOCABLY SUBMITS TO THE NON–EXCLUSIVE

JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN

CHICAGO IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY OF THE

LOAN DOCUMENTS AND THE GENERAL PARTNER AND THE BORROWER EACH HEREBY IRREVOCABLY

AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND

DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR

HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT

IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE

ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE GENERAL

PARTNER OR THE BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY THE GENERAL

PARTNER OR THE BORROWER AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER OR ANY

AFFILIATE OF THE ADMINISTRATIVE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR

INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH

ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS.

 

10.15       WAIVER OF JURY TRIAL.

 

THE GENERAL

PARTNER, THE BORROWER, THE ADMINISTRATIVE AGENT, THE ARRANGER AND EACH LENDER

HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR

INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY

WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE

RELATIONSHIP ESTABLISHED THEREUNDER.

 

10.16       Agent Responsibilities.

 

Borrower, the

Administrative Agent and each Lender acknowledges and agrees that the

obligations of the Syndication Agent, the Co-Documentation Agents, and the

Co-Agents (collectively, the “Other Agents”) hereunder shall be limited to

 

43

 

those obligations

that are expressly set forth herein, if any, or in any other written agreement

with such parties, and the Other Agents shall not be required to take any other

action or assume any liability except as may be required in their capacity as a

Lender hereunder.  Borrower, the

Administrative Agent and each Lender agrees that the indemnifications set forth

herein for the benefit of the Administrative Agent shall also run to the

benefit of each Other Agent to the extent such Other Agent incurs any loss,

cost or damage arising from its agency capacity hereunder.

 

ARTICLE XI

THE ADMINISTRATIVE AGENT AND

AGREEMENTS AMONG LENDERS

 

11.1         Appointment; Nature of Relationship.

 

Bank One, NA is

hereby appointed by each of the Lenders as its contractual representative

(herein referred to as the “Agent”) hereunder and under each other Loan

Document, and each of the Lenders irrevocably authorizes the Agent to act as

the contractual representative of such Lender with the rights and duties

expressly set forth herein and in the other Loan Documents. The Agent agrees to

act as such contractual representative upon the express conditions contained in

this Article XI.  Notwithstanding the

use of the defined term “Agent,” it is expressly understood and agreed that the

Agent shall not have any fiduciary responsibilities to any Lender by reason of

this Agreement or any other Loan Document and that the Agent is merely acting

as the contractual representative of the Lenders with only those duties as are

expressly set forth in this Agreement and the other Loan Documents. In its

capacity as the Lenders’ contractual representative, the Agent (i) does not

hereby assume any fiduciary duties to any of the Lenders, (ii) is a

“representative” of the Lenders within the meaning of Section 9-105 of the

Uniform Commercial Code and (iii) is acting as an independent contractor, the

rights and duties of which are limited to those expressly set forth in this

Agreement and the other Loan Documents. Each of the Lenders hereby agrees to

assert with respect to the Loan Documents and administration of the Loan, no

claim against the Agent on any agency theory or any other theory of liability

for breach of fiduciary duty, all of which claims each Lender hereby waives.

 

11.2         Powers.

 

The Administrative

Agent shall have and may exercise such powers under the Loan Documents as are

specifically delegated to the Administrative Agent by the terms of each

thereof, together with such powers as are reasonably incidental thereto. The

Administrative Agent shall have no implied duties to the Lenders, or any

obligation to the Lenders to take any action thereunder except any action

specifically provided by the Loan Documents to be taken by the Administrative

Agent.

 

11.3         General Immunity.

 

Neither the

Administrative Agent nor any of its directors, officers, agents or employees

shall be liable to the Borrower, the Lenders or any Lender for any action taken

or omitted to be taken by it or them hereunder or under any other Loan Document

or in connection herewith or therewith except for its or their own gross

negligence or willful misconduct.

 

11.4         No Responsibility for Loans,

Recitals, etc.

 

Except where the

failure to do so constitutes gross negligence or willful misconduct, neither

the Administrative Agent nor any of its directors, officers, agents or

employees shall be responsible for or have any duty to ascertain, inquire into,

or verify (i) any statement, warranty or representation made in connection with

any Loan Document or any borrowing hereunder; (ii) the performance or

observance of any of the covenants or agreements of any obligor under any Loan

Document, including, without limitation, any agreement by an obligor to furnish

information directly to each Lender; (iii) the satisfaction of any condition

specified in Article V, except receipt of items required to be delivered to the

Administrative Agent; (iv) the validity, effectiveness or genuineness of any

Loan Document or any other instrument or

 

44

 

writing furnished

in connection therewith; or (v) the value, sufficiency, creation, perfection or

priority of any interest in any collateral security. The Administrative Agent

shall have no duty to disclose to the Lenders information that is not required

to be furnished by the Borrower to the Administrative Agent at such time, but

is voluntarily furnished by the Borrower to the Administrative Agent (either in

its capacity as Administrative Agent or in its individual capacity).

 

11.5         Action on Instructions of Lenders.

 

The Administrative

Agent shall in all cases be fully protected in acting, or in refraining from

acting, hereunder and under any other Loan Document in accordance with written

instructions signed by the Required Lenders or, where consent of all Lenders is

required, all Lenders, and such instructions and any action taken or failure to

act pursuant thereto shall be binding on all of the Lenders and on all holders

of Notes.  The Administrative Agent

shall be fully justified in failing or refusing to take any action hereunder

and under any other Loan Document unless it shall first be indemnified to its

reasonable satisfaction by the Lenders pro rata against any and all liability, cost

and expense that it may incur by reason of taking or continuing to take any

such action.

 

11.6         Employment of Agents and Counsel.

 

The Administrative

Agent may execute any of its duties as Administrative Agent hereunder and under

any other Loan Document by or through employees, agents, and attorneys–in–fact

and so long as it exercises reasonable care in the selection of such parties,

the Administrative Agent shall not be answerable to the Lenders, except as to

money or securities received by it or its authorized agents, for the default or

misconduct of any such parties.  The

Administrative Agent shall be entitled to advice of counsel concerning all

matters pertaining to the agency hereby created and its duties hereunder and

under any other Loan Document.

 

11.7         Reliance on Documents; Counsel.

 

The Administrative

Agent shall be entitled to rely upon any Note, notice, consent, certificate,

affidavit, letter, telegram, statement, paper or document believed by it to be

genuine and correct and to have been signed or sent by the proper person or

persons, and, in respect to legal matters, upon the opinion of counsel selected

by the Administrative Agent, which counsel may be employees of the

Administrative Agent.

 

11.8         Administrative Agent’s Reimbursement

and Indemnification.

 

The

Lenders agree to reimburse and indemnify the Administrative Agent ratably in

proportion to their respective Commitments (i) for any reasonable amounts not

reimbursed by the Borrower or Guarantor for which the Administrative Agent is

entitled to reimbursement by the Borrower under the Loan Documents including

reasonable out-of-pocket expenses in connection with the preparation,

execution, delivery of the Loan Documents, (ii) for any other reasonable

out-of-pocket expenses incurred by the Administrative Agent on behalf of the

Lenders, in connection with the administration and enforcement of the Loan

Documents and (iii) for any liabilities, obligations, losses, damages,

penalties, actions, judgments, suits, costs, expenses or disbursements of any

kind and nature whatsoever which may be imposed on, incurred by or asserted

against the Administrative Agent in any way relating to or arising out of the

Loan Documents or any other document delivered in connection therewith or the

transactions contemplated thereby, or the enforcement of any of the terms

thereof or of any such other documents, provided that no Lender shall be liable

for (i) any of the foregoing to the extent they arise from the gross negligence

or willful misconduct of the Administrative Agent, or (ii) any costs or

expenses of the Administrative Agent’s in-house legal staff and personnel.  The obligations of the Lenders under this

Section 11.8 shall survive payment of the Obligations and termination of this

Agreement.

 

45

 

11.9         Rights as a Lender.

 

In the event the

Administrative Agent is a Lender, the Administrative Agent shall have the same

rights and powers and the same duties and obligations hereunder and under any

other Loan Document as any Lender and may exercise the same as though it were

not the Administrative Agent, and the term “Lender” or “Lenders” shall, at any

time when the Administrative Agent is a Lender, unless the context otherwise

indicates, include the Administrative Agent in its individual capacity.  The Administrative Agent may accept deposits

from, lend money to, and generally engage in any kind of trust, debt, equity or

other transaction, in addition to those contemplated by this Agreement or any

other Loan Document, with the Borrower or any of its Subsidiaries in which the

Borrower or such Subsidiary is not restricted hereby from engaging with any

other Person.

 

11.10       Lender Credit Decision.

 

Each Lender

acknowledges that it has, independently and without reliance upon the

Administrative Agent or any other Lender and based on the financial statements

prepared by the Borrower and such other documents and information as it has

deemed appropriate, made its own credit analysis and decision to enter into

this Agreement and the other Loan Documents. 

Each Lender also acknowledges that it will, independently and without

reliance upon the Administrative Agent or any other Lender and based on such

documents and information as it shall deem appropriate at the time, continue to

make its own credit decisions in taking or not taking action under this

Agreement and the other Loan Documents.

 

11.11       Successor Administrative Agent.

 

The Administrative

Agent may resign at any time by giving written notice thereof to the Lenders

and the Borrower, and the Administrative Agent shall be deemed to have

automatically resigned if it is no longer a Lender, such resignation in either

case to be effective upon the appointment of a successor Administrative Agent

or, if no successor Administrative Agent has been appointed, forty-five days

after the retiring Administrative Agent gives notice of its intention to resign

or ceases to be a Lender, as the case may be. 

The Administrative Agent may be removed at any time with good cause by

written notice received by the Administrative Agent from the Required Lenders,

such removal to be effective on the date specified by the Required

Lenders.  Upon any such resignation or

removal, the Required Lenders shall have the right to appoint, on behalf of the

Borrower and the Lenders, a successor Administrative Agent.  If no successor Administrative Agent shall

have been so appointed by the Required Lenders within thirty days after the

resigning Administrative Agent’s giving notice of its intention to resign, then

the resigning Administrative Agent may appoint, on behalf of the Borrower and

the Lenders, a successor Administrative Agent. 

If the Administrative Agent has resigned or been removed and no

successor Administrative Agent has been appointed within 45 days, the

Lenders shall perform all the duties of the Administrative Agent hereunder and

the Borrower shall make all payments in respect of the Obligations to the

applicable Lender and for all other purposes shall deal directly with the

Lenders.  No successor Administrative

Agent shall be deemed to be appointed hereunder until such successor

Administrative Agent has accepted the appointment.  Any such successor Administrative Agent shall be a commercial

bank (or a subsidiary thereof) having capital and retained earnings of at least

$500,000,000, except that if the successor Administrative Agent is a subsidiary

of a bank, such capital and retained earnings requirement shall apply only to

the parent bank.  Upon the acceptance of

any appointment as Administrative Agent hereunder by a successor Administrative

Agent, such successor Administrative Agent shall thereupon succeed to and

become vested with all the rights, powers, privileges and duties of the

resigning or removed Administrative Agent. 

Upon the effectiveness of the resignation or removal of the

Administrative Agent, the resigning or removed Administrative Agent and the

successor Administrative Agent shall pro rate any agency fees, and the

resigning or removed Administrative Agent shall be discharged from its duties and

obligations thereafter arising hereunder and under the Loan Documents.  After the effectiveness of the resignation

or removal of an Administrative Agent, the provisions of this Article XI shall

continue in effect for the benefit of such Administrative Agent in respect of

any actions taken or omitted to be taken by it while it was acting as the

Administrative Agent hereunder and under the other Loan Documents.

 

46

 

11.12       Notice of Defaults.

 

If a

Lender becomes aware of a Default or Unmatured Default, such Lender shall

notify the Administrative Agent of such fact provided that the failure to give

such notice shall not create liability on the part of any Lender.  Upon receipt of such notice that a Default

or Unmatured Default has occurred, the Administrative Agent shall notify each

of the Lenders of such fact.

 

11.13       Requests for Approval.

 

If the

Administrative Agent requests in writing the consent or approval of a Lender,

such Lender shall respond and either approve or disapprove definitively in

writing to the Administrative Agent within ten Business Days (or sooner if such

notice specifies a shorter period for responses based on Administrative Agent’s

good faith determination that circumstances exist warranting its request for an

earlier response) after such written request from the Administrative

Agent.  If the Lender does not so

respond, that Lender shall be deemed to have approved the request, provided the

initial notice references such deemed approval.

 

11.14       Copies of Documents.

 

Within fifteen

Business Days after a request by a Lender to the Administrative Agent for

documents furnished to the Administrative Agent by the Borrower, the

Administrative Agent shall provide copies of such documents to such Lender.

 

11.15       Defaulting Lenders.

 

At

such time as a Lender becomes a Defaulting Lender, such Defaulting Lender’s

right to vote on matters which are subject to the consent or approval of the

Required Lenders, each affected Lender or all Lenders shall be immediately

suspended until such time as the Lender is no longer a Defaulting Lender,

except that the amount of the Commitment of the Default Lender may not be

changed without its consent. If a Defaulting Lender has failed to fund its pro

rata share of any Advance and until such time as such Defaulting Lender

subsequently funds its pro rata share of such Advance, all Obligations owing to

such Defaulting Lender hereunder shall be subordinated in right of payment, as

provided in the following sentence, to the prior payment in full of all

principal of, interest on and fees relating to the Loans funded by the other

Lenders in connection with any such Advance in which the Defaulting Lender has

not funded its pro rata share (such principal, interest and fees being referred

to as “Senior Loans” for the purposes of this section). All amounts paid by the

Borrower or the Guarantor and otherwise due to be applied to the Obligations

owing to such Defaulting Lender pursuant to the terms hereof shall be

distributed by the Administrative Agent to the other Lenders in accordance with

their respective pro rata shares (recalculated for the purposes hereof to

exclude the Defaulting Lender) until all Senior Loans have been paid in

full.  After the Senior Loans have been

paid in full equitable adjustments will be made in connection with future

payments by the Borrower to the extent a portion of the Senior Loans had been

repaid with amounts that otherwise would have been distributed to a Defaulting

Lender but for the operation of this Section 11.15. This provision governs

only the relationship among the Administrative Agent, each Defaulting Lender

and the other Lenders; nothing hereunder shall limit the obligation of the

Borrower to repay all Loans in accordance with the terms of this Agreement.  The provisions of this section shall apply

and be effective regardless of whether a Default occurs and is continuing, and

notwithstanding (i) any other provision of this Agreement to the contrary, (ii)

any instruction of the Borrower as to its desired application of payments or

(iii) the suspension of such Defaulting Lender’s right to vote on matters which

are subject to the consent or approval of the Required Lenders or all Lenders.

 

ARTICLE XII

SETOFF; RATABLE PAYMENTS

12.1         Setoff.

 

In addition to, and

without limitation of, any rights of the Lenders under applicable law, if the Borrower becomes insolvent, however

evidenced, or any Default or Unmatured Default occurs, any and all deposits

(including all account

 

47

 

balances, whether

provisional or final and whether or not collected or available) and any other

Indebtedness at any time held or owing by any Lender to or for the credit or

account of the Borrower may be offset and applied toward the payment of the

Obligations owing to such Lender, whether or not the Obligations, or any part

hereof, shall then be due.  The Lenders

agree for the benefit of each other Lender (but not the Borrower) that any

set-off shall first be applied to the Obligations before being applied to any

other Indebtedness owing to such Lender.

 

12.2         Ratable Payments.

 

If

any Lender, whether by setoff or otherwise, has payment made to it upon its

Loans (other than payments received pursuant to Sections 4.1, 4.2 or 4.4) in a

greater proportion than that received by any other Lender, such Lender agrees,

promptly upon demand, to purchase a portion of the Loans held by the other

Lenders so that after such purchase each Lender will hold its ratable

proportion of Loans.  If any Lender, whether

in connection with setoff or amounts which might be subject to setoff or

otherwise, receives collateral or other protection for its Obligations or such

amounts which may be subject to setoff, such Lender agrees, promptly upon

demand, to take such action necessary such that all Lenders share in the

benefits of such collateral ratably in proportion to their Loans.  In case any such payment is disturbed by

legal process, or otherwise, appropriate further adjustments shall be made.

 

ARTICLE

XIII

BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

 

13.1         Successors and Assigns.

 

The terms and

provisions of the Loan Documents shall be binding upon and inure to the benefit

of the Borrower and the Lenders and

their respective successors and assigns, except that (i) the Borrower shall not

have the right to assign its rights or obligations under the Loan Documents and

(ii) any assignment by any Lender must be made in compliance with Section 13.3.

Notwithstanding clause (ii) of this Section 13.1, any Lender may at any time,

without the consent of the Borrower or the Administrative Agent, assign all or

any portion of its rights under this Agreement and its Notes to a Federal

Reserve Bank; provided, however, that no such assignment shall release the

transferor Lender from its obligations hereunder. The Administrative Agent may

treat the payee of any Note as the owner thereof for all purposes hereof unless

and until such payee complies with Section 13.3 in the case of an assignment

thereof or, in the case of any other transfer, a written notice of the transfer

is filed with the Administrative Agent. 

Any assignee or transferee of a Note agrees by acceptance thereof to be

bound by all the terms and provisions of the Loan Documents.  Any request, authority or consent of any Person,

who at the time of making such request or giving such authority or consent is

the holder of any Note, shall be conclusive and binding on any subsequent

holder, transferee or assignee of such Note or of any Note or Notes issued in

exchange therefor.

 

13.2         Participations.

 

13.2.1      Permitted Participants; Effect.

 

Any

Lender, in the ordinary course of its business and in accordance with

applicable law, at any time, may sell participating interests in any Loan owing to such Lender,

any Note held by such Lender, any Commitment of such Lender or any other

interest of such Lender under the Loan Documents.  Any Person to whom such a participating interest is sold is a

“Participant”. In the event of any such sale by a Lender of participating

interests to a Participant, such Lender’s obligations under the Loan Documents

shall remain unchanged, such Lender shall remain solely responsible to the

other parties hereto for the performance of such obligations, such Lender shall

remain the holder of any such Note for all purposes under the Loan Documents,

all amounts payable by the Borrower under this Agreement shall be determined as

if such Lender had not sold such participating interests, and the Borrower and

the Administrative Agent shall continue to deal solely and directly with such

Lender in connection with such Lender’s rights and obligations under the Loan

Documents.

 

48

 

13.2.2      Voting Rights.

 

Each

Lender shall retain the sole right to approve, without the consent of any

Participant, any amendment, modification or waiver of any provision of the Loan

Documents other than any amendment, modification or waiver with respect to any

Loan or Commitment in which such Participant has an interest which forgives

principal, interest or fees or reduces the interest rate or fees payable with

respect to any such Loan or Commitment or postpones any date fixed for any

regularly–scheduled payment of principal of, or interest or fees on, any

such Loan or Commitment or releases any guarantor of any such Loan or releases

any substantial portion of collateral, if any, securing such Loan, or changes

the definition of Required Lenders.

 

13.2.3      Benefit of Setoff.

 

The

General Partner and the Borrower each agrees that each Participant shall be

deemed to have the right of setoff provided in Section 12.1 in respect of its

participating interest in amounts owing under the Loan Documents to the same

extent as if the amount of its participating interest were owing directly to it

as a Lender under the Loan Documents, provided that each Lender shall retain

the right of setoff provided in Section 12.1 with respect to the amount of

participating interests sold to each Participant.  The Lenders agree to share with each Participant, and each

Participant, by exercising the right of setoff provided in Section 13.1, agrees

to share with each Lender, any amount received pursuant to the exercise of its

right of setoff, such amounts to be shared in accordance with Section 12.2 as

if each Participant were a Lender.

 

13.3         Assignments.

 

13.3.1      Permitted Assignments.

 

Any

Lender, in the ordinary course of its business and in accordance with

applicable law, at any time, may assign all or any portion (greater than or

equal to $5,000,000 per assignee) of its rights and obligations under the Loan

Documents. Any Person to whom such rights and obligations are assigned is a

“Purchaser”. Such assignment shall be substantially in the form of Exhibit H

hereto or in such other form as may be agreed to by the parties thereto.

 

The

consent of the Administrative Agent shall be required prior to an assignment

becoming effective with respect to a Purchaser which is not a Lender or a

Lender Affiliate, except no consent shall be required if a Default exists. Such

consent shall not be unreasonably withheld.

 

13.3.2      Effect; Effective Date.

 

Upon

(i) delivery to the Administrative Agent of a notice of assignment,

substantially in the form attached as Exhibit I to Exhibit H hereto (a “Notice

of Assignment”), together with any consents required by Section 13.3.1, and

(ii) payment of a $3,500 fee to the Administrative Agent for processing such

assignment (unless the assignment is to an affiliate of the Lender in which

case no fee shall be charged), such assignment shall become effective on the effective

date specified in such Notice of Assignment. The Notice of Assignment shall

contain a representation by the Purchaser to the effect that none of the

consideration used to make the purchase of the Commitment and Loans under the

applicable assignment agreement are “plan assets” as defined under ERISA and

that the rights and interests of the Purchaser in and under the Loan Documents

will not be “plan assets” under ERISA. On and after the effective date of such

assignment, such Purchaser shall for all purposes be a Lender party to this

Agreement and any other Loan Document executed by the Lenders and shall have

all the rights and obligations of a Lender under the Loan Documents, to the

same extent as if it were an original party hereto, and no further consent or

action by the Borrower, the Lenders or the Administrative Agent shall be

required to release the transferor Lender with respect to the percentage of the

Aggregate Commitment and Loans

 

49

 

assigned to such

Purchaser.  Upon the consummation of any

assignment to a Purchaser pursuant to this Section 13.3.2, the transferor

Lender, the Administrative Agent and the Borrower shall make appropriate

arrangements so that replacement Notes are issued to such transferor Lender and

new Notes or, as appropriate, replacement Notes, are issued to such Purchaser,

in each case in principal amounts reflecting their Commitment, as adjusted

pursuant to such assignment.

 

13.4         INTENTIONALLY OMITTED

 

13.5         Dissemination of Information.

 

The General Partner

and the Borrower authorize each Lender to disclose to any Participant or

Purchaser or any other Person acquiring an interest in the Loan Documents by

operation of law (each a “Transferee”) and any prospective Transferee any and

all information in such Lender’s possession concerning the creditworthiness of

the General Partner, the Borrower and their Subsidiaries.

 

13.6         Tax Treatment.

 

If any interest in

any Loan Document is transferred to any Transferee which is organized under the laws of any jurisdiction other than the United

States or any State thereof, the transferor Lender shall cause such Transferee,

concurrently with the effectiveness of such transfer, to comply with the

provisions of Section 2.22.

 

ARTICLE XIV

NOTICES

 

14.1         Giving Notice.

 

Except as otherwise

permitted by Section 2.17 with respect to borrowing notices, all notices and

other communications provided to any party hereto under this Agreement or any

other Loan Document shall be in writing or by telex or by facsimile and addressed or

delivered to such party at its address set forth below its signature hereto or

at such other address as may be designated by such party in a notice to the

other parties. Any notice, if mailed and properly addressed with postage prepaid,

shall be deemed given when received; any notice, if transmitted by telex or

facsimile, shall be deemed given when transmitted (answerback confirmed in the

case of telexes).

 

14.2         Change of Address.

 

The General

Partner, the Borrower, the Administrative Agent, the Arranger and any Lender

may each change the address for service of notice upon it by a notice in

writing to the other parties hereto.

 

ARTICLE XV

COUNTERPARTS

 

This Agreement may

be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of

the parties hereto may execute this Agreement by signing any such

counterpart.  This Agreement shall be

effective when it has been executed by the Borrower, the Administrative Agent

and the Lenders and each party has notified the Administrative Agent by telex

or telephone, that it has taken such action.

 

IN WITNESS WHEREOF,

the Borrower, the Guarantor, the Lenders and the Administrative Agent have executed this Agreement as of the

date first above written.

 

11.1         Statement of Computation of Ratios of

Earnings to Fixed Charges.

 

11.2         Statement

of Computation of Ratios of Earnings to Debt Service.

 

50

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