SECOND AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT
DATED AS OF SEPTEMBER 24, 1998
AMONG
DUKE REALTY LIMITED PARTNERSHIP,
AS BORROWER,
DUKE REALTY INVESTMENTS, INC.,
AS GENERAL PARTNER AND GUARANTOR,
THE FIRST NATIONAL BANK OF CHICAGO AS
ADMINISTRATIVE AGENT AND LENDER,
FIRST CHICAGO CAPITAL MARKETS, INC.,
AS ARRANGER
▇▇▇▇▇ FARGO BANK, NATIONAL ASSOCIATION,
AS ARRANGER, SYNDICATION AGENT AND LENDER,
PNC BANK, NATIONAL ASSOCIATION,
AS DOCUMENTATION AGENT AND LENDER
COMMERZBANK A.G. CHICAGO BRANCH
AS CO-AGENT AND LENDER
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
AS CO-AGENT AND LENDER,
THE SEVERAL OTHER LENDERS
FROM TIME TO TIME PARTIES HERETO
TABLE OF CONTENTS
PAGE
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ARTICLE I DEFINITIONS.............................................................................................2
ARTICLE II THE CREDIT............................................................................................16
2.1. Commitment....................................................................................16
2.2. Final Principal Payment.......................................................................16
2.3. Loans.........................................................................................17
2.4. Applicable Margins............................................................................17
2.5. Facility Fee..................................................................................17
2.6. Upfront Fee...................................................................................17
2.7. Reserved. 17
2.8. Minimum Amount of Each Advance................................................................18
2.9. Optional Principal Payments...................................................................18
2.10. Method of Selecting Types and Interest Periods for New Advances...............................18
2.11. Conversion and Continuation of Outstanding Advances...........................................18
2.12. Changes in Interest Rate, Etc.................................................................19
2.13. Rates Applicable After Default................................................................19
2.14. Swing Line Loans..............................................................................20
2.15. Competitive Bid Loans. .......................................................................20
2.16. Method of Payment.............................................................................25
2.17. Notes; Telephonic Notices.....................................................................25
2.18. Interest Payment Dates; Interest and Fee Basis................................................25
2.19. Notification of Advances, Interest Rates and Prepayments......................................26
2.20. Lending Installations.........................................................................26
2.21. Non-Receipt of Funds by the Administrative Agent..............................................26
2.22. Withholding Tax Exemption.....................................................................26
2.23. Usury.........................................................................................27
2.24. Applications of Moneys Received...............................................................27
ARTICLE III THE LETTER OF CREDIT SUBFACILITY.....................................................................28
3.1. Obligations to Issue..........................................................................28
3.2. Types and Amounts.............................................................................28
3.3. Conditions....................................................................................29
3.4. Procedure for Issuance of Facility Letters of Credit. ........................................29
3.5. Reimbursement Obligations; Duties of Issuing Bank. ...........................................31
3.6. Participation. ...............................................................................31
3.7. Payment of Reimbursement Obligations. ........................................................32
3.8. Compensation for Facility Letters of Credit. .................................................33
3.9. Letter of Credit Collateral Account...........................................................34
ARTICLE IV CHANGE IN CIRCUMSTANCES...............................................................................34
4.1. Yield Protection..............................................................................34
4.2. Changes in Capital Adequacy Regulations.......................................................35
4.3. Availability of LIBOR Advances................................................................35
4.4. Funding Indemnification.......................................................................35
4.5. Lender Statements; Survival of Indemnity......................................................35
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ARTICLE V CONDITIONS PRECEDENT...................................................................................36
5.1. Effective Date................................................................................36
5.2. Each Advance..................................................................................38
ARTICLE VI REPRESENTATIONS AND WARRANTIES........................................................................38
6.1. Existence.....................................................................................38
6.2. Authorization and Validity....................................................................39
6.3. No Conflict; Government Consent...............................................................39
6.4. Financial Statements; Material Adverse Change.................................................39
6.5. Taxes.........................................................................................39
6.6. Litigation and Guarantee Obligations..........................................................40
6.7. Subsidiaries..................................................................................40
6.8. ERISA.........................................................................................40
6.9. Accuracy of Information.......................................................................40
6.10. Margin Stock..................................................................................40
6.11. Material Agreements...........................................................................40
6.12. Compliance With Laws..........................................................................40
6.13. Ownership of Properties.......................................................................41
6.14. Investment Company Act........................................................................41
6.15. Public Utility Holding Company Act............................................................41
6.16. Solvency......................................................................................41
6.17. Insurance.....................................................................................41
6.18. REIT Status...................................................................................42
6.19. Environmental Matters.........................................................................42
6.20. Unencumbered Assets...........................................................................43
6.21. Year 2000 Representation and Warranty.........................................................43
ARTICLE VII COVENANTS............................................................................................43
7.1. Financial Reporting...........................................................................43
7.2. Use of Proceeds...............................................................................45
7.3. Notice of Default.............................................................................46
7.4. Conduct of Business...........................................................................46
7.5. Taxes.........................................................................................46
7.6. Insurance.....................................................................................46
7.7. Compliance with Laws..........................................................................46
7.8. Maintenance of Properties.....................................................................46
7.9. Inspection....................................................................................47
7.10. Maintenance of Status.........................................................................47
7.11. Dividends.....................................................................................47
7.12. Merger; Sale of Assets........................................................................47
7.13. General Partner's Ownership and Control of Borrower...........................................48
7.14. Sale and Leaseback............................................................................48
7.15. Liens.........................................................................................48
7.16. Affiliates....................................................................................49
7.17. Interest Rate Hedging.........................................................................49
7.18. Variable Interest Indebtedness................................................................49
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7.19. Consolidated Net Worth........................................................................49
7.20. Indebtedness and Cash Flow Covenants..........................................................50
7.21. Environmental Matters.........................................................................50
7.22. Control of the General Partner................................................................51
7.23. Senior Management of Borrower.................................................................51
7.24. Borrower's Partnership Agreement..............................................................51
7.25. General Partner's Assets......................................................................51
7.26. Notice of Rating Change.......................................................................51
7.27. Year 2000 Compliance..........................................................................52
ARTICLE VIII DEFAULTS............................................................................................52
ARTICLE IX ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES........................................................54
9.1. Acceleration..................................................................................54
9.2. Amendments....................................................................................54
9.3. Preservation of Rights........................................................................55
ARTICLE X GENERAL PROVISIONS.....................................................................................56
10.1. Survival of Representations...................................................................56
10.2. Governmental Regulation.......................................................................56
10.3. Taxes.........................................................................................56
10.4. Headings......................................................................................56
10.5. Entire Agreement..............................................................................56
10.6. Several Obligations; Benefits of this Agreement...............................................56
10.7. Expenses; Indemnification.....................................................................56
10.8. Numbers of Documents..........................................................................57
10.9. Accounting....................................................................................57
10.10. Severability of Provisions....................................................................57
10.11. Nonliability of Lenders.......................................................................57
10.12. Publicity.....................................................................................57
10.13. CHOICE OF LAW.................................................................................57
10.14. CONSENT TO JURISDICTION.......................................................................58
10.15. WAIVER OF JURY TRIAL..........................................................................58
ARTICLE XI - THE ADMINISTRATIVE AGENT AND AGREEMENTS AMONG LENDERS..............................................58
11.1. Appointment...................................................................................58
11.2. Powers........................................................................................58
11.3. General Immunity..............................................................................58
11.4. No Responsibility for Loans, Recitals, etc....................................................59
11.5. Action on Instructions of Lenders.............................................................59
11.6. Employment of Agents and Counsel..............................................................59
11.7. Reliance on Documents; Counsel................................................................59
11.8. Administrative Agent's Reimbursement and Indemnification......................................59
11.9. Rights as a Lender............................................................................60
11.10. Lender Credit Decision........................................................................60
11.11. Successor Administrative Agent................................................................60
11.12. Notice of Defaults............................................................................61
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11.13. Requests for Approval.........................................................................61
11.14. Copies of Documents...........................................................................62
11.15. Defaulting Lenders............................................................................62
ARTICLE XII - SETOFF; RATABLE PAYMENTS...........................................................................62
12.1. Setoff........................................................................................62
12.2. Ratable Payments..............................................................................62
ARTICLE XIII - BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS.......................................... 63
13.1. Successors and Assigns........................................................................63
13.2. Participations. ..............................................................................63
13.3. Assignments. .................................................................................64
13.4. Designation of Lender to Make Competitive Loans...............................................65
13.5. Dissemination of Information..................................................................65
13.6. Tax Treatment.................................................................................66
ARTICLE XIV - NOTICES............................................................................................66
14.1. Giving Notice.................................................................................66
14.2. Change of Address.............................................................................66
ARTICLE XV - COUNTERPARTS........................................................................................66
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EXHIBITS:
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Exhibit A Pricing Grid
Exhibit B-1 Form of Note
Exhibit B-2 Competitive Bid Notes
Exhibit C-1 Competitive Bid Quote Request
Exhibit C-2 Invitation to Submit Competitive Bids
ExhibitC-3 Competitive Bid Quote
Exhibit D Form of Opinion
Exhibit E Form of Loan/Credit Related Money Transfer Instruction
Exhibit F Form of Compliance Certificate
Exhibit G Minimum Specifications for Environmental Investigations
Exhibit H Form of Assignment Agreement
Exhibit I Form of Designation Agreement
Exhibit J Amendment to School Amended and Restated Revolving Credit Agreement
SCHEDULES:
----------
Schedule 1 Subsidiaries and Other Investments
Schedule 2 Indebtedness and Liens
Schedule 3 Unencumbered Assets
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SECOND AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT
This Agreement, dated as of September 24, 1998, is among Duke Realty
Limited Partnership, an Indiana limited partnership (the "BORROWER"), Duke
Realty Investments, Inc., an Indiana corporation (the "General Partner" and the
"Guarantor"), First Chicago Capital Markets, Inc. ("FCCM") and ▇▇▇▇▇ Fargo Bank,
National Association ("▇▇▇▇▇ Fargo") (collectively, the "ARRANGERS"), The First
National Bank of Chicago ("First Chicago") as a Lender and not individually, but
as "ADMINISTRATIVE AGENT", ▇▇▇▇▇ Fargo as Syndication Agent, PNC Bank, National
Association ("PNC"), as Documentation Agent, Commerzbank A.G. Chicago Branch
("Commerzbank") and Bank of America National Trust and Savings Association
("Bank of America") as Co-Agents, the several banks, financial institutions and
other entities from time to time parties to this Agreement (collectively, with
First Chicago, ▇▇▇▇▇ Fargo, PNC, Commerczbank and Bank of America, 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.
C. The Borrower, General Partner, the Administrative Agent, and certain
of the Lenders are parties to an Amended and Restated Revolving Credit Agreement
dated as of August 28, 1997, as previously amended by First Amendment to Amended
and Restated Revolving Credit Agreement (collectively 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 $250,000,000.
D. The Borrower and the General Partner have requested that the Lenders
increase the amount of loans that are available to the Borrower to the aggregate
amount of $450,000,000 pursuant to the terms of this Agreement, with the ability
to increase such amount to up to $500,000,000 and that certain other changes be
made to the Facility, including the admission of additional 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 amend and restate in its entirety the
Existing Credit Agreement as follows:
ARTICLE I
DEFINITIONS
As used in this Agreement:
"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 The First National Bank of Chicago in its
capacity as agent 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 the Lenders to the Borrower of the same Type and, in the case of
LIBOR Advances, for the same 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 $450,000,000, and which may be changed in
accordance with Section 2.1.
"Agreement" means this Second 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.
"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.
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"Arrangers" means ▇▇▇▇▇ Fargo and First Chicago.
"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 ▇▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇,
▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, or ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ 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, San Francisco, California and New
York, New York 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.
"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.
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"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 or A2 or the equivalent thereof by ▇▇▇▇▇'▇ 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 or P-1 or the equivalent thereof
by ▇▇▇▇▇'▇ and in either case maturing within 90 days from such date.
"CBR Advance" means an Advance which bears interest at the CBR Rate.
"CBR Applicable Margin" means, as of any date, the Applicable Margin in
effect on such date with respect to CBR Advances and CBR Loans.
"CBR Loan" means a Loan which bears interest at the CBR Rate.
"CBR Rate" means, for any day, a rate per annum equal to (i) the
Corporate Base Rate for such day plus (ii) CBR Applicable Margin for such day,
in each case changing when and as the Corporate Base Rate changes.
"Closing Date" means the date of this Agreement.
"Co-Agents" means Commerzbank and Bank of America.
"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.
"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.
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"Competitive Bid Quote Request" means a written request from Borrower
to Administrative Agent in the form attached as EXHIBIT C-1.
"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.
"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.
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"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.
"Corporate Base Rate" means a rate per annum equal to the corporate
base rate of interest announced by First Chicago from time to time, changing
when and as such corporate base rate changes.
"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.
"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, 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
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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.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rule or regulation issued thereunder.
"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 April 14, 2001.
"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.
"First Chicago" means The First National Bank of Chicago in its
individual capacity, and its successors.
"Fixed Charges" means, for any fiscal quarter, Debt Service plus the
Capital Expenditure Reserve Amount for such quarter.
"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.
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"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 Investments, Inc., 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 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.
"Guarantor" means the General Partner in its capacity as the guarantor
under the Guaranty.
"Guaranty" means that certain Second 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
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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, (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) such Person's pro rata share of any loans where
such Person is liable as a general partner.
"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.
"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
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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 3.9.
"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 rate determined by the Administrative Agent
to be the rate at which deposits in U.S. dollars are offered by First Chicago to
first-class banks in the London interbank market at approximately 11 a.m.
(London time) two Business Days prior to the first day of such LIBOR Interest
Period, in the approximate amount of the relevant LIBOR Advance and having a
maturity approximately equal to such LIBOR Interest Period.
"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.
"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%.
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"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 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 ▇▇▇▇▇'▇ 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
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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.
"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.
"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).
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"Purchasers" is defined in SECTION 13.3.1.
"Regulation G" means Regulation G 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.
"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).
"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,
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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. 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.
"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 $20,000,000 made by the Swing
Line Lender in accordance with SECTION 2.14 hereof.
"Syndication Agent" means ▇▇▇▇▇ Fargo.
"S&P" means Standard & Poor's Ratings Group and its successors.
"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 CBR 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 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 any
Subsidiary) which prohibits or limits the ability of the General Partner, the
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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). 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 wholly owned by the Borrower 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.
"▇▇▇▇▇ Fargo" means ▇▇▇▇▇ Fargo Bank, National Association.
"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
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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.
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 $500,000,000. 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.
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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
CBR 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 CBR 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 ▇▇▇▇▇'▇ 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 lower
rating for the higher rated entity shall be deemed to be the applicable rating
(e.g., if the higher rated entity's ▇▇▇▇▇'▇ debt rating is Baa1 and its S&P debt
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 ▇▇▇▇▇'▇ debt
rating and/or S&P'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 either S&P or ▇▇▇▇▇'▇ shall discontinue their ratings of the REIT
industry or the Borrower, a mutually agreeable substitute rating agency shall be
selected by the Required Lenders and the Borrower. If the Required Lenders and
the Borrower cannot agree on a substitute rating agency within thirty (30) days
of such discontinuance, or if both S&P and ▇▇▇▇▇'▇ 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 CBR Applicable Margin or the LIBOR Applicable Margin 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.
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, payable quarterly in arrears on
the last day of each calendar quarter hereafter beginning September 30, 1998 and
on the Facility Termination Date.
2.6. UPFRONT FEE. 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 August 5, 1998.
2.7. RESERVED.
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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 CBR 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 CBR
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 CBR 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 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.
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 CBR 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 CBR 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 five (5) different Interest Periods for LIBOR Advances (other than
Competitive Bid Loans) outstanding at any one time.
2.11. CONVERSION AND CONTINUATION OF OUTSTANDING ADVANCES. CBR Advances
shall continue as CBR Advances unless and until such CBR 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 CBR Advance unless the
Borrower shall have given the Administrative Agent a Conversion/Continuation
Notice requesting that, at the end of such Interest Period, such
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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 CBR 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.
2.12. CHANGES IN INTEREST RATE, ETC. Each CBR 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 CBR 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 CBR Rate for such day. Changes in the rate of
interest on that portion of any Advance maintained as a CBR Advance will take
effect simultaneously with each change in the Corporate 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 CBR Advance shall bear interest at a rate per annum
equal to the CBR Rate otherwise applicable to the CBR Advance plus 2% per annum;
provided that such rates shall become
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applicable automatically without notice to the Borrower if a Default occurs
under SECTION 8.7 or SECTION 8.8.
2.14. SWING LINE LOANS. In addition to the other options available to
Borrower hereunder, up to $20,000,000 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 CBR 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. Upon request of the Swing Line Lender, each Lender irrevocably
agrees to purchase its Percentage of any Swing Line Loan made by the Swing Line
Lender regardless of whether the conditions for disbursement are satisfied at
the time of such purchase, including the existence of a Default hereunder
provided that such Default did not exist at the time the Swing Line Loan was
made and provided further that no Lender shall be required to have total
outstanding Loans plus its Percentage of Facility Letters of Credit to be in an
amount greater than its Commitment. Such purchase shall take place on the date
of the request by Swing Line Lender so long as such request is made by noon
(Chicago time), otherwise on the Business Day following such request. All
requests for purchase shall be in writing. From and after the date it is so
purchased, each such Loan shall be treated as a Loan made by the purchasing
Lender and not by the selling Lender for all purposes under this Agreement, and
shall no longer be considered a Swing Line Loan except that all interest
accruing on or attributable to such Loan for the period prior to the date of
such purchase shall be paid when due by the Borrower to the Administrative Agent
for the benefit of the Swing Line Lender and all such amounts accruing on or
attributable to such Loans for the period from and after the date of such
purchase shall be paid when due by the Borrower to the Administrative Agent for
the benefit of the purchasing Lender. If prior to purchasing its Percentage in a
Swing Line Loan one of the events described in SECTION 8.7 or 8.8 shall have
occurred and such event prevents the consummation of the purchase contemplated
by preceding provisions, each Lender will purchase an undivided participating
interest in the outstanding Swing Line Loan in an amount equal to its Percentage
of such Swing Line Loan. From and after the date of each Lender's purchase of
its participating interest in a Swing Line Loan, if the Swing Line Lender
receives any payment on account thereof, the Swing Line Lender will distribute
to such Lender its participating interest in such amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time during
which such Lender's participating interest was outstanding and funded);
provided, however, that in the event that such payment was received by the Swing
Line Lender and is required to be returned to the Borrower, each Lender will
return to the Swing Line Lender any portion thereof previously distributed by
the Swing Line Lender to it. No Swing Line Loan shall be outstanding for more
than five (5) days at a time and Swing Line Loans shall not be outstanding for
more than a total of ten (10) days during any month.
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
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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 Period 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.
(d) SUBMISSION AND CONTENTS OF COMPETITIVE BID QUOTES.
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(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) 2:00 p.m. (Chicago time) at least four 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 First
Chicago may only be submitted if the Administrative Agent or First
Chicago 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:
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(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.
(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) 6:00
p.m. (Chicago time) at least four 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,
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(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 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.
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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 First
Chicago for each payment of principal, interest and fees 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
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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 CBR 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 Corporate 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. Withholding Tax Exemption. At least five Business Days prior to
the first date on which interest or fees are payable hereunder for the account
of any Lender, each Lender that is not incorporated under the laws of the United
States of America, or a state thereof, agrees that it will deliver to each of
the Borrower and the Administrative Agent two duly completed copies of United
States Internal Revenue Service Form 1001 or 4224, certifying in either case
that such Lender is entitled to receive payments under this Agreement and the
Notes without deduction or withholding of any United States federal income
taxes. Each Lender which so delivers a Form 1001 or 4224 further undertakes to
deliver to each of the Borrower and the Administrative Agent two additional
copies of such form (or a successor form) on or before the date that such form
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expires (currently, three successive calendar years for Form 1001 and one
calendar year for Form 4224) or becomes obsolete or after the occurrence of any
event requiring a change in the most recent forms so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Administrative Agent, in each case certifying
that such Lender is entitled to receive payments under this Agreement and the
Notes 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 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.
2.23. 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.
2.24. 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;
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(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, from time to time during the period
commencing on the Agreement Execution Date 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 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 requested hereunder,
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shall exceed any limit imposed by law or regulation upon
such Issuing Bank;
(ii) issue any Facility Letter of Credit if, after giving effect
thereto, the Facility Letter of Credit Obligations would
exceed $15,000,000 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:
(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
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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
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 3.6(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 amend 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.
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3.5. REIMBURSEMENT OBLIGATIONS; DUTIES OF ISSUING BANK.
(a) The Issuing Bank shall promptly notify the Borrower and
the Administrative Agent of any draw under a Facility Letter of Credit, and the
Administrative Agent shall promptly notify the other Lenders that such draw has
occurred. Any such draw shall constitute an Advance of the Facility in the
amount of the Reimbursement Obligation with respect to such Facility Letter of
Credit and shall bear interest from the date of the relevant drawing(s) under
the pertinent Facility Letter of Credit at a rate selected by Borrower in
accordance with SECTION 2.10 hereof; provided that if a Default or an Unmatured
Default involving the payment of money exists at the time of any such
drawing(s), then the Borrower shall reimburse the Issuing Bank for drawings
under a Facility Letter of Credit issued by the Issuing Bank no later than the
next succeeding Business Day after the payment by the Issuing Bank and until
repaid such Reimbursement Obligation shall bear interest from the date funded at
the Default Rate.
(b) Any action taken or omitted to be taken by the Issuing
Bank under or in connection with any Facility Letter of Credit, if taken or
omitted in the absence of willful misconduct or gross negligence, shall not put
the Issuing Bank under any resulting liability to Borrower or any Lender or,
provided that such Issuing Bank has complied with the procedures specified in
SECTION 3.4 and such Lender has not given a notice contemplated by SECTION
3.6(a) that continues in full force and effect, relieve a Lender of its
obligations hereunder to the Issuing Bank. In determining whether to pay under
any Facility Letter of Credit, the Issuing Bank shall have no obligation
relative to the Lenders other than to confirm that any documents required to be
delivered under such Letter of Credit appear to have been delivered in
compliance, and that they appear to comply on their face, with the requirements
of such Letter of Credit.
3.6. PARTICIPATION.
(a) Immediately upon issuance by the Issuing Bank of any
Facility Letter of Credit 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 3.6 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.
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(b) In the event that the Issuing Bank makes any payment under
any Facility Letter of Credit and the Borrower shall not have repaid such amount
to the Issuing Bank pursuant to SECTION 3.7 hereof, the Issuing Bank shall
promptly notify the Administrative Agent, which shall promptly notify each
Lender of such failure, and each Lender shall promptly and unconditionally pay
to the Administrative Agent for the account of the Issuing Bank the amount of
such Lender's Percentage of the unreimbursed amount of such payment, and the
Administrative Agent shall promptly pay such amount to the Issuing Bank. The
failure of any Lender to make available to the Administrative Agent for the
account of any Issuing Bank its Percentage of the unreimbursed amount of any
such payment shall not relieve any other Lender of its obligation hereunder to
make available to the Administrative Agent for the account of such Issuing Bank
its Percentage of the unreimbursed amount of any payment on the date such
payment is to be made, but no Lender shall be responsible for the failure of any
other Lender to make available to the Administrative Agent its Percentage of the
unreimbursed amount of any payment on the date such payment is to be made. Any
Lender which fails to make any payment required pursuant to this SECTION 3.6(b)
shall be deemed to be a Defaulting Lender hereunder.
(c) 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.
(d) 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.
(e) 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.
3.7. PAYMENT OF REIMBURSEMENT OBLIGATIONS.
(a) The Borrower agrees to pay to each Issuing Bank the amount
of all Reimbursement Obligations, interest and other amounts payable to such
Issuing Bank under or in connection with any Facility Letter of Credit when due
in accordance with SECTION 3.5(a) above, irrespective of any claim, set-off,
defense or other right which the Borrower may have at any time against any
Issuing Bank or any other Person, under all circumstances, including without
limitation any of the following circumstances:
(ii) any lack of validity or enforceability of this Agreement or any
of the other Loan Documents;
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(iii) the existence of any claim, setoff, defense or other right which
the Borrower may have at any time against a beneficiary named in
a Facility Letter of Credit or any transferee of any Facility
Letter of Credit (or any Person for whom any such transferee may
be acting), the Administrative Agent, the Issuing Bank, any
Lender, or any other Person, whether in connection with this
Agreement, any Facility Letter of Credit, the transactions
contemplated herein or any unrelated transactions (including any
underlying transactions between the Borrower and the beneficiary
named in any Facility Letter of Credit);
(iv) any draft, certificate or any other document presented under the
Facility Letter of Credit proving to be forged, fraudulent,
invalid or insufficient in any respect of any statement therein
being untrue or inaccurate in any respect;
(v) the surrender or impairment of any security for the performance
or observance of any of the terms of any of the Loan Documents;
or
(vi) the occurrence of any Default or Unmatured Default.
(b) In the event any payment by the Borrower received by the
Issuing Bank with respect to a Facility Letter of Credit and distributed by the
Administrative Agent to the Lenders on account of their participations is
thereafter set aside, avoided or recovered from the Issuing Bank in connection
with any receivership, liquidation, reorganization or bankruptcy proceeding,
each Lender which received such distribution shall, upon demand by the Issuing
Bank, contribute such Lender's Percentage of the amount set aside, avoided or
recovered together with interest at the rate required to be paid by the Issuing
Bank upon the amount required to be repaid by the Issuing Bank.
3.8. 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.
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3.9. 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 any law or any governmental or
quasi-governmental rule, regulation, policy, guideline or directive (whether or
not having the force of law), or any interpretation thereof, or the compliance
of any Lender therewith,
(i) subjects any Lender or any applicable Lending Installation to any
tax, duty, charge or withholding on or from payments due from the
Borrower (excluding federal, state and local income or franchise
taxes on the overall income of any Lender or applicable Lending
Installation), or changes the basis of taxation of payments to
any Lender in respect of its Loans, Facility Letters of Credit or
other amounts due it hereunder, or
(ii) 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
(iii) 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 loans or reduces any amount
receivable by any Lender or any applicable Lending Installation
in connection with loans, or requires any Lender or any
applicable Lending Installation to make any payment calculated by
reference to the amount of loans held, Letters of Credit issued
or participated in or interest received by it, by an amount
deemed material by such Lender,
then, within 15 days of demand by such Lender, the Borrower shall pay such
Lender that portion of such increased expense incurred or reduction in an amount
received which such Lender determines is attributable to making, funding and
maintaining its Loans and its Commitment.
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4.2. CHANGES IN CAPITAL ADEQUACY REGULATIONS. If a Lender 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
fifteen 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 on such increased capital which such Lender determines is attributable
to this Agreement, its Loans, its interest in the Facility Letters of Credit, or
its obligation to make Loans hereunder or participate in or issue Facility
Letters of Credit (after taking into account such Lender's policies as to
capital adequacy). "CHANGE" means (i) any change after the date of this
Agreement in the Risk-Based Capital Guidelines 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 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 Basle 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 LIBOR ADVANCES. If any Lender 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
LIBOR Advances and require any LIBOR Advances to be repaid; or if the Required
Lenders determine that (i) deposits of a type or maturity appropriate to match
fund LIBOR Advances are not available, the Administrative Agent shall suspend
the availability of LIBOR Advances with respect to any LIBOR Advances made after
the date of any such determination, or (ii) an interest rate applicable to a
LIBOR Advance does not accurately reflect the cost of making a LIBOR Advance,
then, if for any reason whatsoever the provisions of SECTION 4.1 are
inapplicable, the Administrative Agent shall suspend the availability of LIBOR
Advances with respect to any LIBOR Advances made after the date of any such
determination.
4.4. FUNDING INDEMNIFICATION. If any payment of a LIBOR Advance or
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 LIBOR Advance or Competitive Bid Loan is not made on the date
specified by the Borrower for any reason other than default by the Lenders, 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
or Competitive Bid Loan. Nothing in this Section 4.4 shall authorize the
prepayment of a Competitive Bid Loan prior to the applicable Interest Period.
4.5. 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 and 4.2 or to avoid the unavailability of a Type of a
LIBOR Advance under SECTION 4.3, so long as such designation is
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not disadvantageous to such Lender. Each Lender shall deliver a written
statement of such Lender as to the amount due, if any, under SECTIONS 4.1, 4.2
or 4.4. 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 shall be payable on demand after receipt by
the Borrower of the written statement. The obligations of the Borrower under
SECTIONS 4.1, 4.2 and 4.4 shall survive payment of the Obligations and
termination of this Agreement.
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;
(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, toget her 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
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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 December
31, 1997;
(x) UCC financing statement, judgment, and tax lien searches with
respect to the General Partner and the Borrower from the State of
Indiana and the counties in which either General Partner or
Borrower owns properties;
(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
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(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.
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.
Borrower shall also furnish 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
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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.
6.4. FINANCIAL STATEMENTS; MATERIAL ADVERSE CHANGE. The December 31,
1997 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
December 31, 1997, 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
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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.
6.10. MARGIN STOCK. It does not hold any margin stock (as defined in
Regulation G or 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, 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
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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 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:
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(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
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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.
6.21. YEAR 2000 REPRESENTATION AND WARRANTY. The Borrower has conducted
a comprehensive review and assessment of the Borrower's computer applications
and made inquiry of the Borrower's key suppliers, vendors and customers with
respect to the "year 2000 problem" (that is, the risk that computer applications
may not be able to properly perform date-sensitive functions after December 31,
1999) and, based on that review and inquiry, the Borrower does not believe the
year 2000 problem will result in a material adverse change in the Borrower's
business condition (financial or otherwise), operations, properties or
prospects, or ability to repay the Loan.
ARTICLE VII
COVENANTS
During the term of this Agreement, unless, with respect to SECTIONS
7.20(iii) and (v), the Required Lenders including both Arrangers 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:
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(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 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
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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.
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.
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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 and (v) joint ventures and partnerships, PROVIDED that the total
investment in any one of the first four of the foregoing categories does not
exceed ten percent (10%) of Market Capitalization, the total investment in the
fifth 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.
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
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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:
(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.
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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 (except that General Partner's ownership of the
Borrower may be reduced to 67% by the issuance of additional limited partnership
units so long as General Partner remains the sole general partner of 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.
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".
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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 $525,000,000.
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) $950,000,000 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 after the Closing Date.
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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 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:
(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
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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. This indemnity shall
continue in full force and effect regardless of the termination of this
Agreement; 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.
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. SENIOR MANAGEMENT OF BORROWER. In the event that less than three
of the following senior managers: ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇ ▇▇▇▇, and
▇▇▇▇▇▇ ▇. ▇▇▇▇▇ are actively involved in the management of the Borrower, the
Borrower will replace, at a minimum, all but one of the senior managers who have
left with individuals who are satisfactory to the Required Lenders within 120
days after the date the second such senior manager ceases to be actively
involved in the management of the Borrower.
7.24. BORROWER'S PARTNERSHIP AGREEMENT. The General Partner shall not
consent to any changes to Borrower's partnership agreement without the prior
written consent of the Arrangers.
7.25. GENERAL PARTNER'S ASSETS. The General Partner shall not invest in
or own any material assets directly other than its partnership interest in
Borrower.
7.26. 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 ▇▇▇▇▇'▇ or S&P of either the General Partner or the Borrower.
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7.27. YEAR 2000 COMPLIANCE. The Borrower will promptly notify the
Administrative Agent in the event the Borrower discovers or determines that any
computer application (including those of its suppliers and vendors) that is
material to its or any of its Subsidiaries' business and operations will not be
Year 2000 compliant on a timely basis, except to the extent that such failure
could not reasonably be expected to have a Material Adverse Effect.
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 7.25.
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.
8.6. Failure of the General Partner, the Borrower or any of their
Subsidiaries to pay when due any Indebtedness aggregating in excess of
$5,000,000 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
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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.
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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.
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 Required Lenders may
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
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 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 ten (10) 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) 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
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Borrower hereunder or waiving any Default hereunder; PROVIDED, however, that no
such supplemental agreement shall, without the consent of both Arrangers, 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.
(iii) Reduce the percentage specified in the definition of Required
Lenders.
(iv) Increase the amount of the Aggregate Commitment.
(v) Permit the Borrower to assign or allow another Person to assume
its rights under this Agreement.
(vi) 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, and no amendment increasing the Commitment of any Lender shall be
effective without the written consent of such Lender.
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.
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
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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
Arrangers 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 Arrangers, which attorneys
may be employees of the Arrangers) paid or incurred by the Arrangers (whether in
their capacity as arrangers, or, in the case of First Chicago, in its capacity
as Administrative Agent) in connection with the preparation, negotiation,
execution, delivery, review, amendment, modification, and administration of the
Loan
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Documents. The Borrower also agrees to reimburse the Arrangers 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 Arrangers and the Lenders, which attorneys may be employees of the
Arrangers or the Lenders) paid or incurred by the Arrangers (whether in their
capacity as arrangers, or, in the case of First Chicago, 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 Administrative Agent, the Arrangers
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, except that any
calculation or determination which is to be made on a consolidated basis shall
be made for the General Partner, the Borrower and all their Subsidiaries,
including those Subsidiaries, if any, which are unconsolidated on the Borrower's
official financial statements.
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 Arrangers and
the Administrative Agent, on the other, shall be solely that of borrower and
lender. Neither the Administrative Agent, the Arrangers nor any Lender shall
have any fiduciary responsibilities to the General Partner and the Borrower.
Neither the Administrative Agent, the Arrangers 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
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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.
ARTICLE XI
THE ADMINISTRATIVE AGENT AND AGREEMENTS AMONG LENDERS
11.1. APPOINTMENT. Subject to the provisions of Section 11.11, The
First National Bank of Chicago is hereby appointed Administrative Agent
hereunder and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Administrative Agent to act as the agent of such
Lender. The Administrative Agent agrees to act as such upon the express
conditions contained in this ARTICLE XI. The Administrative Agent shall not have
a fiduciary relationship in respect of the Borrower or any Lender by reason of
this Agreement.
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
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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. 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).
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, 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 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.
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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 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.
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.
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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, PROVIDED, HOWEVER, that ▇▇▇▇▇ Fargo Realty
Advisors Funding, Incorporated (but not its successors and assigns) may, at its
option, appoint itself as 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 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. 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
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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.
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. 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 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
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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
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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.
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 an Affiliate thereof, 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 $3,000 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
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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 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.
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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 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.
[INTENTIONAL END OF PAGE]
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IN WITNESS WHEREOF, the Borrower, the Guarantor, the Lenders and the
Administrative Agent have executed this Agreement as of the date first above
written.
DUKE REALTY LIMITED PARTNERSHIP
By: DUKE REALTY INVESTMENTS,
INC., its General Partner
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
-----------------------------
Print Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
Title: Executive Vice President, Chief
Financial Officers and Assistant Secretary
c/o Duke Realty Investments, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
DUKE REALTY INVESTMENTS, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
------------------------
Print Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
Title: Executive Vice President, Chief
Financial Officers and Assistant Secretary
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
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COMMITMENTS:
$30,000,000 THE FIRST NATIONAL BANK OF CHICAGO,
Individually and as Administrative Agent
By: ____________________________________________________
Print Name: ____________________________________________
Title: _________________________________________________
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇
Real Estate Portfolio
Management
14th Floor
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
$55,000,000 ▇▇▇▇▇ FARGO BANK, NATIONAL ASSOCIATION,
Individually and as Syndication Agent
By: ____________________________________________________
Print Name: ____________________________________________
Title: _________________________________________________
▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
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$55,000,000 PNC BANK, NATIONAL ASSOCIATION, Individually and as
Documentation Agent
By: ____________________________________________________
Print Name: ____________________________________________
Title: _________________________________________________
Commercial Real Estate Dept.
▇▇▇ ▇. ▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
$45,000,000 COMMERZBANK A.G. CHICAGO BRANCH
Individually and as Co-Agent
By: ____________________________________________________
Print Name: J. ▇▇▇▇▇▇▇ Shortly
Title: Senior Vice President
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: J. ▇▇▇▇▇▇▇ Shortly
Senior Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
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$45,000,000 BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION
Individually and as Co-Agent
By: ____________________________________________________
Print Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇.
Title: Vice President
Bank of America National Trust and
Savings Association
▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇.
Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
$35,000,000 AMSOUTH BANK
By: ____________________________________________________
Print Name: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Title: ______________
AmSouth Bank
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ Sonat Tower
▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
----------------
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
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$35,000,000 WACHOVIA BANK, N.A.
By: ____________________________________________________
Print Name: ▇▇▇▇▇ ▇▇▇▇▇
Title: _________________________________________________
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇.▇.
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇
___________________________________(title)
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
$30,000,000 MERCANTILE BANK NATIONAL ASSOCIATION
By: ____________________________________________________
Print Name: ▇▇▇▇▇ ▇▇▇▇▇
Title: Vice President
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇. ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇,
Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-71-
$25,000,000 BANK ONE, INDIANA, NATIONAL
ASSOCIATION
By: ____________________________________________________
Print Name: ____________________________________________
Title: _________________________________________________
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇.▇. ▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
$25,000,000 KEYBANK NATIONAL ASSOCIATION
By: ____________________________________________________
Print Name: ▇▇▇▇▇▇▇ ▇▇▇▇
Title: _________________________________________________
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇
_____________________________________(title)
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-72-
$25,000,000 LASALLE NATIONAL BANK
By: ____________________________________________________
Print Name: ▇▇▇▇ ▇▇▇▇
Title: _________________________________________________
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇
____________________________________(title)
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
$20,000,000 HUNTINGTON NATIONAL BANK
By: ____________________________________________________
Print Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: _________________________________________________
▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
____________________________________(title)
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-73-
$15,000,000 COMERICA BANK
By: ____________________________________________________
Print Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Account Officer
One Detroit Center
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Account Officer
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
$10,000,000 NATIONAL CITY BANK OF INDIANA
By: ____________________________________________________
Print Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Senior Vice President
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Senior Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-74-
EXHIBIT A
PRICING GRID
Ratings: At least At least At least At least Below either
S&P & ▇▇▇▇▇'▇ A- and A3 BBB+ and Baa1 BBB and Baa2 BBB- and Baa3 BBB- or Baa3
-------------------------------- ------------------ ----------------- ------------------ ---------------- --------------
Corporate Base Rate Margin* 0 0 0 0 25
-------------------------------- ------------------ ----------------- ------------------ ---------------- --------------
LIBOR Margin* 65 70 80 95 125
-------------------------------- ------------------ ----------------- ------------------ ---------------- --------------
Facility Fee Rate* 15 20 20 25 25
-------------------------------- ------------------ ----------------- ------------------ ---------------- --------------
* = in basis points per annum
All margins and fees change as and when the rating classification changes.
In the event of a rating agency downgrade, the Borrower will receive a credit
for any incremental borrowing cost should the rating agency(ies) restore the
higher rating within a ninety day period. In the event that either S & P or
▇▇▇▇▇ shall cease to follow the REIT industry, Borrower or General Partner an
alternate agency will be selected that is mutually acceptable to the Required
Lenders and the Borrower.
EXHIBIT B-1
NOTE
$_________ September ___, 1998
Duke Realty Limited Partnership, an Indiana limited partnership
(the "Borrower") promises to pay to the order of ________ (the "Lender") the
lesser of the principal sum of ____________ Dollars or the aggregate unpaid
principal amount of all Loans made by the Lender to the Borrower pursuant to
Article II of the Second Amended and Restated Revolving Credit Agreement
hereinafter referred to, in immediately available funds at the main office of
The First National Bank of Chicago in Chicago, Illinois, as Administrative
Agent, together with interest on the unpaid principal amount hereof at the
rates and on the dates set forth in the Agreement. The Borrower shall pay the
remaining unpaid principal of and accrued and unpaid interest on the Loans in
full on the Facility Termination Date.
The Lender shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date and amount of each Loan and the date and amount of each principal
payment hereunder.
This Note is one of the Notes issued pursuant to, and is entitled to
the benefits of, the Second Amended and Restated Revolving Credit Agreement (as
the same may be amended or modified the "Agreement"), dated as of September ___,
1998 among the Borrower, Duke Realty Investments, Inc., as Guarantor and General
Partner, The First National Bank of Chicago, individually and as an Arranger and
the Administrative Agent, ▇▇▇▇▇ Fargo Bank, National Association, individually
and as an Arranger and the other lenders named therein, to which Agreement
reference is hereby made for a statement of the terms and conditions governing
this Note, including the terms and conditions under which this Note may be
prepaid or its maturity date accelerated. Capitalized terms used herein and not
otherwise defined herein are used with the meanings attributed to them in the
Agreement.
If there is an Event of Default or Default under the Agreement or any
other Loan Document and Administrative Agent exercises the remedies provided
under the Agreement and/or any of the Loan Documents for the Lenders, then in
addition to all amounts recoverable by the Administrative Agent and the Lenders
under such documents, the Administrative Agent and the Lenders shall be entitled
to receive reasonable attorneys fees and expenses incurred by Administrative
Agent and the Lenders in connection with the exercise of such remedies.
Borrower and all endorsers severally waive presentment, protest and
demand, notice of protest, demand and of dishonor and nonpayment of this Note,
and any and all lack of diligence or delays in collection or enforcement of this
Note, and expressly agree that this Note, or any payment hereunder, may be
extended from time to time, and expressly consent to the release of any party
liable for the obligation secured by this Note, the release of any of the
security for this Note, the acceptance of any other security therefor, or any
other indulgence or forbearance whatsoever, all without notice to any party and
without affecting the liability of the Borrower and any endorsers hereof.
This Note shall be governed and construed under the internal laws of
the State of Illinois.
BORROWER AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY WAIVE ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHT UNDER THIS PROMISSORY NOTE OR ANY OTHER LOAN DOCUMENT OR RELATING THERETO
OR ARISING FROM THE LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS PROMISSORY
NOTE AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A JUDGE
AND NOT BEFORE A JURY.
DUKE REALTY LIMITED PARTNERSHIP
By: DUKE REALTY INVESTMENTS, INC., its
General Partner
By:________________________________
Print Name:________________________
Title:_____________________________
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE OF DUKE REALTY LIMITED PARTNERSHIP
DATED ________ , 1998
DATE PRINCIPAL MATURITY MATURITY UNPAID
AMOUNT OF INTEREST PRINCIPAL BALANCE
OF LOAN PERIOD AMOUNT PAID
------------------------ ---------------------- ---------------------- ---------------------- ----------------------
EXHIBIT B-2
FORM OF COMPETITIVE BID NOTE
September ___, 1998
On or before the last day of each "Interest Period" applicable to a
"Competitive Bid Loan", as defined in that certain Second Amended and Restated
Resolving Credit Agreement dated as of September ___, 1998 (the "AGREEMENT")
between DUKE REALTY LIMITED PARTNERSHIP, an Indiana limited partnership
("BORROWER"), DUKE REALTY INVESTMENTS, INC., an Indiana corporation
("GUARANTOR"), THE FIRST NATIONAL BANK OF CHICAGO, a national bank organized
under the laws of the United States of America, individually and as
Administrative Agent for the Lenders (as such terms are defined in the
Agreement), Borrower promises to pay to the order of _________________________
(the "LENDER"), or its successors and assigns, the unpaid principal amount of
such Competitive Bid Loan made by the Lender to the Borrower pursuant to SECTION
2.15 of the Agreement, in immediately available funds at the office of the
Administrative Agent in Chicago, Illinois, together with interest on the unpaid
principal amount hereof at the rates and on the dates set forth in the
Agreement. The Borrower shall pay any remaining unpaid principal amount of such
Competitive Bid Loans under this Competitive Bid Note ("NOTE") in full on or
before the Facility Termination in accordance with the terms of the Agreement.
The Lender shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date, amount and due date of each Competitive Bid Loan and the date and
amount of each principal payment hereunder.
This Note is issued pursuant to, and is entitled to the security
under and benefits of, the Agreement and the other Loan Documents, to which
Agreement and Loan Documents, as they may be amended from time to time,
reference is hereby made for, INTER ALIA, a statement of the terms and
conditions under which this Note may be prepaid or its maturity date
accelerated. Capitalized terms used herein and not otherwise defined herein are
used with the meanings attributed to them in the Agreement.
If there is an Event of Default or Default under the Agreement or any
other Loan Document and Lender exercises its remedies provided under the
Agreement and/or any of the Loan Documents, then in addition to all amounts
recoverable by the Lender under such documents, Lender shall be entitled to
receive reasonable attorneys fees and expenses incurred by Lender in exercising
such remedies.
Borrower and all endorsers severally waive presentment, protest and
demand, notice of protest, demand and of dishonor and nonpayment of this Note
(except as otherwise expressly provided for in the Agreement), and any and all
lack of diligence or delays in collection or enforcement of this Note, and
expressly agree that this Note, or any payment hereunder, may be extended from
time to time, and expressly consent to the release of any party liable for the
obligation secured by this Note, the release of any of the security of this
Note, the acceptance of any other security therefor, or any other indulgence or
forbearance whatsoever, all without notice to any party and without affecting
the liability of the Borrower and any endorsers hereof.
This Note shall be governed and construed under the internal laws of
the State of Illinois.
BORROWER AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY WAIVE ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHT UNDER THIS PROMISSORY NOTE OR ANY OTHER LOAN DOCUMENT OR RELATING THERETO
OR ARISING FROM THE LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS NOTE AND
AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.
DUKE REALTY LIMITED PARTNERSHIP
By: DUKE REALTY INVESTMENTS, INC., its
General Partner
By:_________________________________
Print Name:_________________________
Title:______________________________
PAYMENTS OF PRINCIPAL
Unpaid
Principal Notation
Date Balance Made by
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EXHIBIT C-1
FORM OF COMPETITIVE BID QUOTE REQUEST
(Section 2.15(b))
To: The First National Bank of Chicago,
as administrative agent (the "Agent")
From: Duke Realty Limited Partnership ("Borrower")
Re: Second Amended and Restated Credit Agreement dated as of
September __, 1998, as amended among the Borrower, the Lenders
from time to time party thereto, The First National Bank of
Chicago and ▇▇▇▇▇ Fargo Bank, National Association, as
Arrangers, and The First National Bank of Chicago, as
Administrative Agent for the Lenders (as amended, supplemented
or otherwise modified from time to time through the date hereof,
the "Agreement")
1. Capitalized terms used herein have the meanings assigned to them in
the Agreement.
2. We hereby give notice pursuant to Section 2.15(b) of the Agreement
that we request Competitive Bid Quotes for the following proposed Competitive
Bid Loan(s):
Borrowing Date: _______________, 19___
Principal Amount(1) Interest Period(2)
3. Such Competitive Bid Quotes should offer [a Competitive LIBOR
Margin] [an Absolute Rate].
---------------------
(1) Amount must be at least $10,000,000 and an integral multiple of
$1,000,000.
(2) One, two, three or six months subject to the provisions of the
definitions of LIBOR Interest Period and Absolute Interest Period.
4. Upon acceptance by the undersigned of any or all of the Competitive
Bid Loans offered by Lenders in response to this request, the undersigned shall
be deemed to affirm as of the Borrowing Date thereof the representations and
warranties made in Article VI of the Agreement.
DUKE REALTY LIMITED PARTNERSHIP
By: DUKE REALTY INVESTMENTS, INC., its
General Partner
By:_______________________________
Print Name:_______________________
Title:____________________________
EXHIBIT C-2
INVITATION FOR COMPETITIVE BID QUOTES
(Section 2.15(c))
To: Each of the Lenders party to
the Agreement referred to below
Re: Invitation for Competitive Bid Quotes to
Duke Realty Limited Partnership (the "Borrower")
Pursuant to SECTION 2.15(c) of the Second Amended and Restated Credit
Agreement dated as of September ___, 1998 as amended from time to time, among
the Borrower, the lenders from time to time party thereto, The First National
Bank of Chicago and ▇▇▇▇▇ Fargo Bank, National Association, as Arrangers, and
the First National Bank of Chicago as Administrative Agent for the Lenders (as
amended, supplemented or otherwise modified from time to time through the date
hereof, the "Agreement"), we are pleased on behalf of the Borrower to invite you
to submit Competitive Bid Quotes to the Borrower for the following proposed
Competitive Bid Loan(s):
Borrowing Date: _______________, 19___
Principal Amount Interest Period
Such Competitive Bid Quotes should offer [a Competitive LIBOR Margin] [an
Absolute Rate]. Your Competitive Bid Quote must comply with SECTION 2.15(c) of
the Agreement and the foregoing. Capitalized terms used herein have the meanings
assigned to them in the Agreement.
Please respond to this invitation by no later than [9:00 A.M.] (Chicago
time) on _______________, 19___.
THE FIRST NATIONAL BANK OF CHICAGO, as
Administrative Agent
By:_____________________________________
Title:__________________________________
EXHIBIT C-3
COMPETITIVE BID QUOTE
(Section 2.15(d))
_______________, 19___
To: The First National Bank of Chicago,
as Administrative Agent
Re: Competitive Bid Quote to Duke Realty Limited Partnership
(the "Borrower")
In response to your invitation on behalf of the Borrower dated
_______________, 19___, we hereby make the following Competitive Bid Quote
pursuant to SECTION 2.15(d) of the Agreement hereinafter referred to and on the
following terms:
1. Quoting Lender:_______________________________________________________
2.. Person to contact at Quoting Lender:
3. Borrowing
Date:_______________________________________________________________________(1)
4. We hereby offer to make Competitive Bid Loan(s) in the following principal
amounts, for the following Interest Periods and at the following rates:
Principal Interest [Competitive [Absolute Minimum
Amount(2) Period(3) LIBOR Margin(4)] Rate(5)] Amount(6)
------------------------ ---------------------- ---------------------- ---------------------- --------------------
------------------------
(1) As specified in the related Invitation For Competitive Bid Quotes.
(2) Principal amount bid for each Interest Period may not exceed the
principal amount requested. Bids must be made for at least $5,000,000 and
integral multiples of $1,000,000.
(3) One, two, three or six months, as specified in the related Invitation
For Competitive Bid Quotes.
(4) Competitive LIBOR Margin for the applicable LIBOR Interest Period.
Specify percentage (rounded to the nearest 1/100 of 1%) and specify whether
"PLUS" or "MINUS".
(5) Specify rate of interest per annum (rounded to the nearest 1/100 of 1%).
(6) Specify minimum amount, if any, which the Borrower may accept (see
SECTION 2.15(d)(ii)(d)).
We understand and agree that the offer(s) set forth above, subject to the
satisfaction of the applicable conditions set forth in the Second Amended and
Restated Credit Agreement dated as of September 24, 1998, among the Borrower,
the lenders from time to time party thereto, The First National Bank of Chicago
and ▇▇▇▇▇ Fargo Bank, National Association as Arrangers, and The First National
Bank of Chicago, as Administrative Agent for the lenders (as amended,
supplemented or otherwise modified from time to time through the date hereof,
the "Agreement"), irrevocably obligates us to make the Competitive Bid Loan(s)
for which any offer(s) are accepted, in whole or in part. Capitalized terms used
herein and not otherwise defined herein shall have their meanings as defined in
the Agreement.
Very truly yours,
[NAME OF LENDER]
By:_______________________________
Title:____________________________
EXHIBIT D
FORM OF OPINION
______________ , 19
The Administrative Agent and
the Lenders who are parties to the
Credit Agreement described below
Gentlemen/Ladies:
We are counsel for Duke Realty Limited Partnership, an Indiana limited
partnership (the "Borrower"), and Duke Realty Investments, Inc., an Indiana
corporation (the "General Partner" and, collectively with the Borrower, the
"Duke Entities"), and have represented the Duke Entities in connection with
their execution and delivery of a Second Amended and Restated Credit
Agreement among the Duke Entities, The First National Bank of Chicago,
individually, as an Arranger and as Administrative Agent, ▇▇▇▇▇ Fargo Bank,
National Association, individually and as an Arranger, and the Lenders named
therein, providing for Advances in an aggregate principal amount of
$450,000,000 with the ability to increase such amount to an amount not
exceeding $500,000,000 at any one time outstanding and dated as of
________________ (the "Agreement"). All capitalized terms used in this
opinion and not otherwise defined shall have the meanings attributed to them
in the Agreement.
We have examined the Duke Entities' articles of incorporation, by-laws,
resolutions, certificate of limited partnership, partnership agreement, the Loan
Documents and such other matters of fact and law which we deem necessary in
order to render this opinion. Based upon the foregoing, it is our opinion that:
1. The General Partner, the Borrower and each of their Subsidiaries are either
duly incorporated corporations or duly qualified and formed limited
partnerships, validly existing and in good standing under the laws of their
states of incorporation or formation.
2. The execution and delivery of the Loan Documents by the Duke Entities and the
performance by the Duke Entities of their obligations under the Loan Documents
have been duly authorized by all necessary corporate action and/or proceedings
on the part of the Duke Entities and will not:
(a) require any consent of the Duke Entities' shareholders or
limited partners;
(b) violate any law, rule, regulation, order, writ, judgment,
injunction, decree or award binding on the Duke Entities or any of
their Subsidiaries or the Duke Entities' or any Subsidiary's articles
of incorporation, by-laws, certificate of limited partnership,
partnership agreement, or any indenture, instrument or agreement
binding upon the Duke Entities or any of their Subsidiaries; or
(c) result in, or require, the creation or imposition of any Lien
pursuant to the provisions of any indenture, instrument or agreement
binding upon the Duke Entities or any of their Subsidiaries.
3. The Loan Documents have been duly executed and delivered by the Duke
Entities and constitute legal, valid and binding obligations of the Duke
Entities enforceable in accordance with their
terms except to the extent the enforcement thereof may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors' rights
generally and subject also to the availability of equitable remedies if
equitable remedies are sought.
4. There is no litigation or proceeding against the Duke Entities or
any of their Subsidiaries which, if adversely determined, could have a Material
Adverse Effect.
5. No approval, authorization, consent, adjudication or order of any
governmental authority, which has not been obtained by the Duke Entities or any
of their Subsidiaries, is required to be obtained by the Duke Entities or any of
their Subsidiaries in connection with the execution and delivery of the Loan
Documents, the borrowings under the Agreement or in connection with the payment
by the Duke Entities of their obligations under the Loan Documents.
6. The General Partner qualifies as a real estate investment trust in
accordance with all applicable requirements of the Internal Revenue Code.
This opinion may be relied upon by the Agent, the Lenders and their
participants, assignees and other transferees.
Very truly yours,
------------------------------
EXHIBIT E
LOAN/CREDIT RELATED MONEY TRANSFER INSTRUCTION
To: The First National Bank of Chicago,
as Agent (the "Agent") under the Agreement
Described Below
Re: Second Amended and Restated Credit Agreement, dated as of ___________,
1998 (as amended, modified, renewed or extended from time to time, the
"Agreement"), among Duke Realty Limited Partnership, an Indiana limited
partnership (the "Borrower"), Duke Realty Investments, Inc., an Indiana
corporation, The First National Bank of Chicago, individually, as an
Arranger and as Administrative Agent, ▇▇▇▇▇ Fargo Bank, National
Association, individually and as an Arranger, and the Lenders named
therein. Terms used herein and not otherwise defined shall have the
meanings assigned thereto in the Agreement.
The Agent is specifically authorized and directed to act upon the following
standing money transfer instructions with respect to the proceeds of Advances or
other extensions of credit from time to time until receipt by the Agent of a
specific written revocation of such instructions by the Borrower, provided,
however, that the Agent may otherwise transfer funds as hereafter directed in
writing by the Borrower in accordance with SECTION 14.1 of the Credit Agreement
or based on any telephonic notice made in accordance with SECTION 2.18 of the
Agreement.
Facility Identification Number(s)______________________________________________
Customer/Account Name__________________________________________________________
Transfer Funds To______________________________________________________________
For Account No.________________________________________________________________
Reference/Attention To_________________________________________________________
Authorized Officer (Customer Representative) Date _________________________
-------------------------------- -------------------------
(Please Print) Signature
Bank Officer Name______________________________________________________________
-------------------------------- -------------------------
(Please Print) Signature
(Deliver Completed Form to Credit Support Staff For Immediate Processing)
EXHIBIT F
COMPLIANCE CERTIFICATE
To: The Administrative Agent and the Lenders
who are parties to the Credit Agreement described below
This Compliance Certificate is furnished pursuant to that certain Second
Amended and Restated Credit Agreement, dated as of ___________, ____ 1998 (as
amended, modified, renewed or extended from time to time, the "Agreement") among
Duke Realty Limited Partnership, an Indiana limited partnership (the
"Borrower"), Duke Realty Investments, Inc., an Indiana corporation ("General
Partner"), The First National Bank of Chicago, individually, as an Arranger and
as Administrative Agent, ▇▇▇▇▇ Fargo Bank, National Association, individually
and as an Arranger, and the Lenders named therein. Unless otherwise defined
herein, capitalized terms used in this Compliance Certificate have the meanings
ascribed thereto in the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES THAT:
1. I am the duly elected __________________ of the General Partner of
the Borrower;
2. I have reviewed the terms of the Agreement and I have made, or have
caused to be made under my supervision, a detailed review of the transactions
and conditions of the Borrower and its Subsidiaries during the accounting period
covered by the attached financial statements;
3. The examinations described in paragraph 2 did not disclose, and I
have no knowledge of, the existence of any condition or event which constitutes
a Default or Unmatured Default during or at the end of the accounting period
covered by the attached financial statements or as of the date of this
Certificate, except as set forth below; and
4. Schedule I attached hereto sets forth financial data and
computations evidencing the Borrower's compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and correct.
Described below are the exceptions, if any, to paragraph 3 by listing, in
detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to
take with respect to each such condition or event:
-----------------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
The foregoing certifications, together with the computations set forth
in Schedule I hereto and the financial statements delivered with this
Certificate in support hereof, are made and delivered this _____ day
of _____________, 19____.
DUKE REALTY LIMITED PARTNERSHIP
By: DUKE REALTY INVESTMENTS, INC., its
General Partner
By: _________________________________________
Print Name:__________________________________
Title:_______________________________________
[SAMPLE]
SCHEDULE I TO COMPLIANCE CERTIFICATE
Schedule of Compliance as of _________ with
Provisions __________, ____________, _____________, and _____ of the Agreement
EXHIBIT G
MINIMUM SPECIFICATIONS FOR ENVIRONMENTAL INVESTIGATIONS
EXHIBIT H
ASSIGNMENT AGREEMENT
This Assignment Agreement (this "Assignment Agreement") between (the
"Assignor") and ____________ (the "Assignee") is dated as of ____________,
19___ . The parties hereto agree as follows:
5._______PRELIMINARY STATEMENT. The Assignor is a party to a Credit
Agreement (which, as it may be amended, modified, renewed or extended from time
to time is herein called the "Credit Agreement") described in Item 1 of Schedule
1 attached hereto ("Schedule 1"). Capitalized terms used herein and not
otherwise defined herein shall have the meanings attributed to them in the
Credit Agreement.
6. ASSIGNMENT AND ASSUMPTION. The Assignor hereby sells and assigns to
the Assignee, and the Assignee hereby purchases and assumes from the Assignor,
an interest in and to the Assignor's rights and obligations under the Credit
Agreement such that after giving effect to such assignment the Assignee shall
have purchased pursuant to this Assignment Agreement the percentage interest
specified in Item 3 of Schedule 1 of all outstanding rights and obligations
under the Credit Agreement and the other Loan Documents. The aggregate
Commitment (or Loans, if the applicable Commitment has been terminated)
purchased by the Assignee hereunder is set forth in Item 4 of Schedule 1.
7. EFFECTIVE DATE. The effective date of this Assignment Agreement (the
"Effective Date") shall be the later of the date specified in Item 5 of Schedule
1 or two (2) Business Days (or such shorter period agreed to by the
Administrative Agent) after a Notice of Assignment substantially in the form of
Exhibit "I" attached hereto has been delivered to the Agent. Such Notice of
Assignment must include the consent of the Agent required by SECTION 12.3.1 of
the Credit Agreement. In no event will the Effective Date occur if the payments
required to be made by the Assignee to the Assignor on the Effective Date under
SECTIONS 4 AND 5 hereof are not made on the proposed Effective Date. The
Assignor will notify the Assignee of the proposed Effective Date no later than
the Business Day prior to the proposed Effective Date. As of the Effective Date,
(i) the Assignee shall have the rights and obligations of a Lender under the
Loan Documents with respect to the rights and obligations assigned to the
Assignee hereunder and (ii) the Assignor shall relinquish its rights and be
released from its corresponding obligations under the Loan Documents with
respect to the rights and obligations assigned to the Assignee hereunder.
8. PAYMENTS OBLIGATIONS. On and after the Effective Date, the Assignee
shall be entitled to receive from the Agent all payments of principal, interest
and fees with respect to the interest assigned hereby. The Assignee shall
advance funds directly to the Agent with respect to all Loans and reimbursement
payments made on or after the Effective Date with respect to the interest
assigned hereby. [In consideration for the sale and assignment of Loans
hereunder, (i) the Assignee shall pay the Assignor, on the Effective Date, an
amount equal to the principal amount of the portion of all CBR Loans assigned to
the Assignee hereunder and (ii) with respect to each LIBOR Loan made by the
Assignor and assigned to the Assignee hereunder which is outstanding on the
Effective Date, (a) on the last day of the Interest Period therefor or (b) on
such earlier date agreed to by the Assignor and the Assignee or (c) on the date
on which any such LIBOR Loan either becomes due (by acceleration or otherwise)
or is prepaid (the date as described in the foregoing clauses (a), (b) or (c)
being hereinafter referred to as the "LIBOR Due Date"), the Assignee shall pay
the Assignor an amount equal to the principal amount of the portion of such
LIBOR Loan assigned to the Assignee which is outstanding on the LIBOR Due Date.
If the Assignor and the Assignee agree that the applicable LIBOR Due Date for
such LIBOR Loan shall be the Effective Date, they shall agree, solely for
purposes of dividing interest paid by the Borrower on such LIBOR Loan,
to an alternate interest rate applicable to the portion of such Loan assigned
hereunder for the period from the Effective Date to the end of the related
Interest Period (the "Agreed Interest Rate") and any interest received by the
Assignee in excess of the Agreed Interest Rate, with respect to such LIBOR Loan
for such period, shall be remitted to the Assignor. [In the event interest for
any period from the Effective Date to but not including the LIBOR Due Date is
not paid when due by the Borrower with respect to any LIBOR Loan sold by the
Assignor to the Assignee hereunder, the Assignee shall pay to the Assignor
interest for such period on the portion of such LIBOR Loan sold by the Assignor
to the Assignee hereunder at the applicable rate provided by the Credit
Agreement.] In the event a prepayment of any LIBOR Loan which is existing on the
Effective Date and assigned by the Assignor to the Assignee hereunder occurs
after the Effective Date but before the applicable LIBOR Due Date, the Assignee
shall remit to the Assignor any excess of the funding indemnification amount
paid by the Borrower under Section 3.4 of the Credit Agreement an account of
such prepayment with respect to the portion of such LIBOR Loan assigned to the
Assignee hereunder over the amount which would have been paid if such prepayment
amount were calculated based on the Agreed Interest Rate and only covered the
portion of the Interest Period after the Effective Date. The Assignee will
promptly remit to the Assignor (i) the portion of any principal payments
assigned hereunder and received from the Agent with respect to any LIBOR Loan
prior to its LIBOR Due Date and (ii) any amounts of interest on Loans and fees
received from the Agent which relate to the portion of the Loans assigned to the
Assignee hereunder for periods prior to the Effective Date, in the case of CBR
Loans or fees, or the LIBOR Due Date, in the case of LIBOR Loans, and not
previously paid by the Assignee to the Assignor.]* In the event that either
party hereto receives any payment to which the other party hereto is entitled
under this Assignment Agreement, then the party receiving such amount shall
promptly remit it to the other party hereto.
*EACH ASSIGNOR MAY INSERT ITS STANDARD PAYMENT PROVISIONS IN LIEU OF THE PAYMENT
TERMS INCLUDED IN THIS EXHIBIT.
9. FEES PAYABLE BY THE ASSIGNEE. The Assignee shall pay to the Assignor
a fee on each day on which a payment of interest or Facility Fees is made under
the Credit Agreement with respect to the amounts assigned to the Assignee
hereunder (other than a payment of interest or Facility Fees attributable to the
period prior to the Effective Date or, in the case of LIBOR Loans, the Payment
Date, which the Assignee is obligated to deliver to the Assignor pursuant to
SECTION 4 hereof). The amount of such fee shall be the difference between (i)
the interest or fee, as applicable, paid with respect to the amounts assigned to
the Assignee hereunder and (ii) the interest or fee, as applicable, which would
have been paid with respect to the amounts assigned to the Assignee hereunder if
each interest rate was calculated at the rate of % rather than the actual
percentage used to calculate the interest rate paid by the Borrower or if the
Facility Fee was calculated at the rate of % rather than the actual percentage
used to calculate the Facility Fee paid by the Borrower, as applicable. In
addition, the Assignee agrees to pay % of the fee required to be paid to the
Agent in connection with this Assignment Agreement.
10. REPRESENTATIONS OF THE ASSIGNOR; LIMITATIONS ON THE ASSIGNOR'S
LIABILITY. The Assignor represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim created by the Assignor. It is
understood and agreed that the assignment and assumption hereunder are made
without recourse to the Assignor and that the Assignor makes no other
representation or warranty of any kind to the Assignee. Neither the Assignor nor
any of its officers, directors, employees, agents or attorneys shall be
responsible for (i) the due execution, legality, validity, enforceability,
genuineness, sufficiency or collectability of any Loan Document, including
without limitation, documents granting the Assignor and the other Lenders a
security interest in assets of the Borrower or any guarantor, (ii) any
representation, warranty or statement made in or in connection with any of the
Loan Documents, (iii) the financial condition or creditworthiness of the
Borrower or any guarantor, (iv) the performance of or compliance with any of the
terms or provisions of any of the Loan Documents, (v) inspecting any of the
Property, books or records of the Borrower, (vi) the validity, enforceability,
perfection, priority, condition, value or
sufficiency of any collateral securing or purporting to secure the Loans or
(vii) any mistake, error of judgment, or action taken or omitted to be taken in
connection with the Loans or the Loan Documents.
11. REPRESENTATIONS OF THE ASSIGNEE. The Assignee (i) confirms that it
has received a copy of the Credit Agreement, together with copies of the
financial statements requested by the Assignee and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment Agreement, (ii) agrees that it will,
independently and without reliance upon the Agent, the Assignor or any other
Lender and based on such documents and information at it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Loan Documents, (iii) appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers under the Loan
Documents as are delegated to the Agent by the terms thereof, together with such
powers as are reasonably incidental thereto, (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender, (v) agrees that
its payment instructions and notice instructions are as set forth in the
attachment to Schedule 1, (vi) confirms that none of the funds, monies, assets
or other consideration being used to make the purchase and assumption hereunder
are "plan assets" as defined under ERISA and that its rights, benefits and
interests in and under the Loan Documents will not be "plan assets" under ERISA,
[and (vii) attaches the forms prescribed by the Internal Revenue Service of the
United States certifying that the Assignee is entitled to receive payments under
the Loan Documents without deduction or withholding of any United States federal
income taxes].
**TO BE INSERTED IF THE ASSIGNEE IS NOT INCORPORATED UNDER THE LAWS OF THE
UNITED STATES, OR A STATE THEREOF.
12. INDEMNITY. The Assignee agrees to indemnify and hold the Assignor
harmless against any and all losses, costs and expenses (including, without
limitation, reasonable attorneys' fees) and liabilities incurred by the Assignor
in connection with or arising in any manner from the Assignee's non-performance
of the obligations assumed under this Assignment Agreement.
13. SUBSEQUENT ASSIGNMENTS. After the Effective Date, the Assignee
shall have the right pursuant to SECTION 12.3.1 of the Credit Agreement to
assign the rights which are assigned to the Assignee hereunder to any entity or
person, provided that (i) any such subsequent assignment does not violate any of
the terms and conditions of the Loan Documents or any law, rule, regulation,
order, writ, judgment, injunction or decree and that any consent required under
the terms of the Loan Documents has been obtained and (ii) unless the prior
written consent of the Assignor is obtained, the Assignee is not thereby
released from its obligations to the Assignor hereunder, if any remain
unsatisfied, including, without limitation, its obligations under SECTIONS 4, 5
AND 8 hereof.
14. REDUCTIONS OF AGGREGATE COMMITMENT. If any reduction in the
Aggregate Commitment occurs between the date of this Assignment Agreement and
the Effective Date, the percentage interest specified in Item 3 of Schedule 1
shall remain the same, but the dollar amount purchased shall be recalculated
based on the reduced Aggregate Commitment.
15. ENTIRE AGREEMENT. This Assignment Agreement and the attached Notice
of Assignment embody the entire agreement and understanding between the parties
hereto and supersede all prior agreements and understandings between the parties
hereto relating to the subject matter hereof.
16. GOVERNING LAW. This Assignment Agreement shall be governed by the
internal law, and not the law of conflicts, of the State of Illinois.
17. NOTICES. Notices shall be given under this Assignment Agreement in
the manner set forth in the Credit Agreement. For the purpose hereof, the
addresses of the parties hereto (until notice of a change is delivered) shall be
the address set forth in the attachment to Schedule 1.
IN WITNESS WHEREOF, the parties hereto have executed this Assignment
Agreement by their duly authorized officers as of the date first above written.
[NAME OF ASSIGNOR]
By: ____________________________
Title: ____________________________
____________________________
____________________________
____________________________
[NAME OF ASSIGNEE]
By: ____________________________
Title: ____________________________
____________________________
____________________________
____________________________
SCHEDULE 1
to Assignment Agreement
1. Description and Date of Credit Agreement:
2. Date of Assignment Agreement: ____________________, 19____
3. Amounts (As of Date of Item 2 above):
a. Aggregate Commitment
(Loans)* under
Credit Agreement $ ____________
b. Assignee's Percentage
of the Aggregate Commitment
purchased under this
Assignment Agreement* ____________%
4. Amount of Assignee's (Loan Amount)**
Commitment Purchased under this
Assignment Agreement: $ ___________
5. Proposed Effective Date: ___________
Accepted and Agreed:
[NAME OF ASSIGNOR] [NAME OF ASSIGNEE]
By:_____________________________ By:________________________________
Title:__________________________ Title:_____________________________
* If a Commitment has been terminated, insert outstanding Loans in place of
Commitment
** Percentage taken to 10 decimal places
Attachment to SCHEDULE 1 to ASSIGNMENT AGREEMENT
Attach Assignor's Administrative Information Sheet, which must
include notice address for the Assignor and the Assignee
EXHIBIT I
to Assignment Agreement
NOTICE
OF ASSIGNMENT
____________, 19___
To: [NAME OF ADMINISTRATIVE AGENT]
____________________
____________________
From: [NAME OF ASSIGNOR] (the "Assignor")
[NAME OF ASSIGNEE] (the "Assignee")
18. We refer to that Credit Agreement (the "Credit Agreement")
described in Item 1 of Schedule 1 attached hereto ("Schedule 1"). Capitalized
terms used herein and not otherwise defined herein shall have the meanings
attributed to them in the Credit Agreement.
19. This Notice of Assignment (this "Notice") is given and delivered to
the Administrative Agent pursuant to SECTION 12.3.2 of the Credit Agreement.
20. The Assignor and the Assignee have entered into an Assignment
Agreement, dated as of ____________, 19___ (the "Assignment"), pursuant to
which, among other things, the Assignor has sold, assigned, delegated and
transferred to the Assignee, and the Assignee has purchased, accepted and
assumed from the Assignor the percentage interest specified in Item 3 of
Schedule 1 of all outstandings, rights and obligations under the Credit
Agreement. The Effective Date of the Assignment shall be the later of the
date specified in Item 5 of Schedule 1 or two (2) Business Days (or such
shorter period as agreed to by the Administrative Agent) after this Notice of
Assignment and any fee required by SECTION 12.3.2 of the Credit Agreement
have been delivered to the Administrative Agent, provided that the Effective
Date shall not occur if any condition precedent agreed to by the Assignor and
the Assignee has not been satisfied.
21. The Assignor and the Assignee hereby give to the Administrative
Agent notice of the assignment and delegation referred to herein. The Assignor
will confer with the Administrative Agent before the date specified in Item 5 of
Schedule 1 to determine if the Assignment Agreement will become effective on
such date pursuant to SECTION 3 hereof, and will confer with the Administrative
Agent to determine the Effective Date pursuant to SECTION 3 hereof if it occurs
thereafter. The Assignor shall notify the Administrative Agent if the Assignment
Agreement does not become effective on any proposed Effective Date as a result
of the failure to satisfy the conditions precedent agreed to by the Assignor and
the Assignee. At the request of the Administrative Agent, the Assignor will give
the Administrative Agent written confirmation of the satisfaction of the
conditions precedent.
22. The Assignor or the Assignee shall pay to the Administrative Agent
on or before the Effective Date the processing fee of $3,000 required by SECTION
12.3.2 of the Credit Agreement.
23. If Notes are outstanding on the Effective Date, the Assignor and
the Assignee request and direct that the Administrative Agent prepare and cause
the Borrower to execute and deliver
new Notes or, as appropriate, replacements notes, to the Assignor and the
Assignee. The Assignor and, if applicable, the Assignee each agree to deliver to
the Administrative Agent the original Note received by it from the Borrower upon
its receipt of a new Note in the appropriate amount.
24. The Assignee advises the Administrative Agent that notice and
payment instructions are set forth in the attachment to Schedule 1.
25. The Assignee hereby represents and warrants that none of the funds,
monies, assets or other consideration being used to make the purchase pursuant
to the Assignment are "plan assets" as defined under ERISA and that its rights,
benefits, and interests in and under the Loan Documents will not be "plan
assets" under ERISA.
26. The Assignee authorizes the Administrative Agent to act as its
agent under the Loan Documents in accordance with the terms thereof. The
Assignee acknowledges that the Administrative Agent has no duty to supply
information with respect to the Borrower or the Loan Documents to the Assignee
until the Assignee becomes a party to the Credit Agreement.*
*May be eliminated if Assignee is a party to the Credit Agreement prior to the
Effective Date.
NAME OF ASSIGNOR NAME OF ASSIGNEE
By: ________________________________ By:__________________________
Title:______________________________ Title: ______________________
ACKNOWLEDGED AND CONSENTED TO
BY THE FIRST NATIONAL BANK OF CHICAGO, as Administrative Agent
By: ________________________________
Title: _____________________________
[Attach photocopy of Schedule 1 to Assignment]
EXHIBIT I
DESIGNATION AGREEMENT
Dated ___________, 199__
Reference is made to the Second Amended and Restated Credit Agreement
dated as of September __, 1998 (as amended, supplemented or otherwise modified
from time to time, the "Credit Agreement") among Duke Realty Limited
Partnership, an Indiana limited partnership (the "Borrower"), Duke Realty
Investments, Inc., an Indiana corporation, the Banks parties thereto, and The
First National Bank of Chicago, as Administrative Agent (the "Administrative
Agent") for the Lenders. Terms defined in the Credit Agreement are used herein
with the same meaning.
________________________________________(the
"Designor"),__________________ (the "Designee"), the Administrative Agent and
the Borrower agree as follows:
27. The Designor hereby designates the Designee, and the Designee
hereby accepts such designation, to have a right to make Competitive Bid Loans
pursuant to Section 2.15 of the Credit Agreement. Any assignment by Designor to
Designee of its rights to make a Competitive Bid Loan pursuant to such Section
2.15 shall be effective at the time of the funding for such Competitive Bid Loan
and not before such time.
28. The Designor makes no representation or warranty and assumes no
responsibility pursuant to this Designation Agreement with respect to (a) any
statements, warranties or representations made in or in connection with any Loan
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of any Loan Document or any other instrument and document
furnished pursuant thereto and (b) the financial condition of the Borrower or
any Loan Party of the performance or observance by the Borrower or any Loan
Party or any of their respective obligations under any Loan Document or any
other instrument or document furnished pursuant thereto. (It is acknowledged
that the Designor may make representations and warranties of the type described
above in other agreements to which the Designor is a party).
29. The Designee (a) confirms that it has received a copy of each Loan
Document, together with copies of the financial statements referred to in
Section 7.1 of the Credit Agreement and such other documents and information as
it has deemed appropriate to make its own independent credit analysis and
decision to enter into this Designation Agreement, (b) agrees that it will,
independently and without reliance upon the Administrative Agent, the Designor
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 Loan Document; (c) confirms that it is a Designated
Lender; (d) appoints and authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers and discretion under any Loan
Document as are delegated to the Administrative Agent by the terms thereof,
together with such powers and discretion as are reasonably incidental thereto,
and (e) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of any Loan Document are required to be performed
by it as a Lender.
30. The Designee hereby appoints Designor as Designee's agent and
attorney in fact, and grants to Designor an irrevocable power of attorney, to
deliver and receive all communications and notices under the Credit Agreement
and other Loan Documents and to exercise on Designee's behalf all rights to vote
and to grant and made approvals, waivers, consents or amendment to or under the
Credit Agreement or other Loan Documents. Any document executed by the Designor
on the Designee's behalf in connection with the Credit Agreement or other Loan
Documents shall be binding on the Designee. The Borrower, the Administrative
Agent and each of the Banks may rely on and are beneficiaries of the preceding
provisions.
31. Following the execution of this Designation Agreement by the
Designor and its Designee, it will be delivered to the Administrative Agent for
acceptance and recording by the Administrative Agent. The effective date for
this Designation Agreement (the "Effective Date") shall be the date of
acceptance hereof by the Administrative Agent, unless otherwise specified on the
signature page thereto.
32. Neither the Administrative Agent nor the Borrower shall institute,
or join any other person in instituting, against the Designee any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other
proceeding under any federal or state bankruptcy or similar law at any time that
the Designee has any outstanding debt or other securities which are rated by
S&P, ▇▇▇▇▇'▇ or any other rating agency or at any time within one year and one
day after the date such debt or other securities have been repaid in full.
33. The Designor unconditionally agrees to pay or reimburse the
Designee and save the Designee harmless against all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed or asserted
by any of the parties to the Loan Documents against the Designee, in its
capacity as such, in any way relating to or arising out of this Designation
Agreement or any other Loan Documents or any action taken or omitted by the
Designee hereunder or thereunder, PROVIDED that the Designor shall not be liable
for any portion of such liabilities, obligations, losses, damage, penalties,
actions, judgments, suits, costs, expenses or disbursements if the same results
from the Designee's gross negligence or willful misconduct.
34. Upon such acceptance and recording by the Administrative Agent, as
of the Effective Date, the Designee shall be a party to the Credit Agreement
with a right to make Competitive Bid Loans as pursuant to Section 2.15 of the
Credit Agreement and the rights and obligations of a Lender related thereto.
35. This Designation Agreement shall be governed by, and construed in
accordance with, the laws of the State of Illinois, without reference to the
provisions thereof regarding conflicts of law.
36. This Designation Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Designation Agreement by facsimile
transmission shall be effective as of delivery of a manually executed
counterpart of this Designation Agreement.
IN WITNESS WHEREOF, the Designor and the Designee, intending to be
legally bound, have caused this Designation Agreement to be executed by their
officers thereunto duly authorized as of the date first above written.
Effective Date(1) __________________________, 199___
_____________________________________as
Designor
By:___________________________________
Title:________________________________
_____________________________________as
Designee
By:___________________________________
Title:________________________________
Applicable Lending Office (and address for
notices):
______________________________________
______________________________________
______________________________________
Attention:____________________________
Re: Account No.______________________
Accepted this ____ day of _______________, 199__
THE FIRST NATIONAL BANK OF DUKE REALTY LIMITED PARTNERSHIP
CHICAGO, as Administrative Agent
By: DUKE REALTY INVESTMENTS,
INC., its General Partner
By: __________________________________ By:______________________________
Title:________________________________ Title:___________________________
--------------------
(1) This date should be no earlier than five Business Days after the
delivery of this Designation Agreement to the Administrative Agent.
EXHIBIT J
AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT
This Amendment to the Second Amended and Restated Revolving Credit
Agreement (the "Amendment") is made as of _______________, _____, by and among
Duke Realty Limited Partnership ("Borrower"), The First National Bank of
Chicago, individually and as "Administrative Agent", and one or more new or
existing "Lenders" shown on the signature pages hereof.
R E C I T A L S
A. Borrower, Administrative Agent and certain other Lenders have entered
into an Second Amended and Restated Credit Agreement dated as of September 24,
1998 (as amended, the "Credit Agreement"). All capitalized terms used herein and
not otherwise defined shall have the meanings given to them in the Credit
Agreement.
B. Pursuant to the terms of the Credit Agreement, the Lenders initially
agreed to provide Borrower with a revolving credit facility in an aggregate
principal amount of up to $450,000,000. The Borrower, the Administrative Agent
and the Lenders now desire to amend the Credit Agreement in order to, among
other things (i) increase the Aggregate Commitment to $____,000,000; and (ii)
admit [NAME OF NEW BANKS] as "Lenders" under the Credit Agreement.
NOW, THEREFORE, in consideration of the foregoing Recitals and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:
AGREEMENTS
37. The foregoing Recitals to this Amendment hereby are
incorporated into and made part of this Amendment.
38. From and after _______________, _____ (the "Effective Date") (i)
[NAME OF NEW BANKS] shall be considered as "Lenders" under the Credit Agreement
and the Loan Documents, and (ii) [NAME OF EXISTING LENDERS] shall each be deemed
to have increased its Commitment to the amount shown next to their respective
signatures on the signature pages of this Amendment, each having a Commitment in
the amount shown next to their respective signatures on the signature pages of
this Amendment. The Borrower shall, on or before the Effective Date, execute and
deliver to each of such new or existing Lenders a new or amended and restated
Note in the amount of such Commitment (and in the case of a new Lender, a
Competitive Bid Note as well).
39. From and after the Effective Date, the Aggregate Commitment shall
equal ____________ Million Dollars ($_____,000,000).
40. For purposes of Section 13.1 of the Credit Agreement (Giving
Notice), the address(es) and facsimile number(s) for [NAME OF NEW BANKS] shall
be as specified below their respective signature(s) on the signature pages of
this Amendment.
41. The Borrower hereby represents and warrants that, as of the
Effective Date, there is no Default or Unmatured Default, the representations
and warranties contained in Article VI of the Agreement are true and correct as
of such date and the Borrower has no offsets or claims against any of the
Lenders.
42. As expressly modified as provided herein, the Credit Agreement
shall continue in full force and effect.
43. This Amendment 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 Amendment by signing any such counterpart.
IN WITNESS WHEREOF, the parties have executed and delivered this
Amendment as of the date first written above.
DUKE REALTY LIMITED PARTNERSHIP THE FIRST NATIONAL BANK OF
CHICAGO, Individually and as
Administrative Agent
By: DUKE REALTY INVESTMENTS,
INC., its General Partner
By:____________________________ By___________________________________
Print Name:____________________ Print Name: _________________________
Title:_________________________ Title:_______________________________
c/o Duke Realty Investments, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇. One First National Plaza
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇ Attention: Real Estate
Finance Dept.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇)▇▇▇-▇▇▇▇
DUKE REALTY INVESTMENTS, INC.
By:__________________________
Print Name:__________________
Title:_______________________
c/o Duke Realty Investments, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Amount of Commitment: $ ____________ [NAME OF NEW LENDER]
By:________________________________
Print Name:________________________
Title:_____________________________
[ADDRESS OF NEW LENDER]
Attention:_________________________
Telephone:_________________________
Facsimile:_________________________
SCHEDULE 1
SUBSIDIARIES AND OTHER INVESTMENTS
(See SECTION 6.7)
INVESTMENT OWNED AMOUNT OF PERCENT JURISDICTION OF
IN BY INVESTMENT OWNERSHIP ORGANIZATION
---------------------------- ------------------------- -------------------------- ------------------------- -----------------------
SCHEDULE 2
INDEBTEDNESS AND LIENS
(See SECTION 7.15)
MATURITY
INDEBTEDNESS INDEBTEDNESS PROPERTY AND AMOUNT
INCURRED BY OWED TO ENCUMBERED OF INDEBTEDNESS
---------------------------------- -------------------------------- -------------------------------- ------------------------------
SCHEDULE 3
UNENCUMBERED ASSETS
(See SECTION 6.20)
PROJECT NAME DATE PLACED
AND ADDRESS TYPE OF PROJECT IN SERVICE OWNED BY
------------ --------------- ----------- --------