Common use of Employees and Contracts Clause in Contracts

Employees and Contracts. Except as set forth in the Disclosure Schedule, (a) there are no employees of any Partnership or Entity as of the date hereof, nor (b) service or maintenance contracts affecting any Property which are not cancelable upon thirty (30) days notice or less or which are for a contract amount greater than $100,000 per annum; true and correct copies of the service, equipment, franchise, operating, management, parking, supply, utility and maintenance agreements relating to any Property (the "Service Contracts") have been made available to the Operating Partnership and the same are in full force and effect and have not been modified or amended except in the ordinary course of the applicable Partnership's business. To Contributors' Knowledge, no event of default exists (which remains uncured) under any of the Service Contracts which would have a Material Adverse Effect. To Contributors' Knowledge, there are no union contracts or similar agreements between Development and the employees of Development. Listed on Schedule 2.24 are employment agreements entered into as of November 8, 2002 by and between the Operating Partnership and each of the eleven senior executives listed thereon (the "Senior Executives Employment Agreements"). Other than the Senior Executives Employment Agreements, prior to or concurrently with the Closing, all employment agreements between any employees and the Participating Partnerships or Development shall be terminated in writing and, except to the extent ordinary course benefits made available to all similarly situated employees, including paid time off, and other ordinary course liabilities thereunder have been assumed by the Operating Partnership, all obligations under such employment agreements shall have been satisfied. Other than as agreed to in the Senior Executive Employment Agreements, no employee is entitled to receive annual compensation (including bonus) from any Partnership, Entity, Development or the Operating Partnership in excess of $250,000.