1
GUARANTY OF PAYMENT -- NO. 2
----------------------------
GUARANTY OF PAYMENT -- NO. 2 (this "Guaranty"), made as of May
12, 2000, between EQUITY OFFICE PROPERTIES TRUST, a Maryland real estate
investment trust, having an address at Xxx Xxxxx Xxxxxxxxx Xxxxx, Xxxxx 0000,
Xxxxxxx, Xxxxxxxx 00000 ("Guarantor"), and BANK OF AMERICA, N.A., as
administrative agent ("Administrative Agent") for the banks (the "Banks") listed
on the signature pages of the Revolving Credit Agreement (as the same may be
amended, modified, supplemented or restated, the "Credit Agreement"), dated as
of the date hereof, among EOP Operating Limited Partnership ("Borrower"), the
Banks, XX XXXXXX SECURITIES INC., as lead arranger, book runner and syndication
agent, BANC OF AMERICA SECURITIES LLC, as joint lead arranger and joint book
runner, the Administrative Agent, THE CHASE MANHATTAN BANK, as documentation
agent (the "Documentation Agent"), and UBS WARBURG LLC, as syndication agent.
W I T N E S S E T H:
WHEREAS, the Banks have agreed to make loans to Borrower in
the aggregate principal amount not to exceed One Billion Dollars
($1,000,000,000) (hereinafter collectively referred to as the "Loans");
WHEREAS, the Loans are evidenced by certain promissory notes
(the "Notes") of Borrower made to each of the Banks in accordance with the terms
of the Credit Agreement;
WHEREAS, the Credit Agreement and the Notes and any other
documents executed in connection therewith are hereinafter collectively referred
to as the "Loan Documents";
WHEREAS, capitalized terms used herein and not otherwise
defined shall have the meanings ascribed thereto in the Credit Agreement;
WHEREAS, Guarantor is the sole general partner of Borrower;
WHEREAS, as a condition to the execution and delivery of the
Loan Documents, the Banks have required that Guarantor execute and deliver this
Guaranty, as well as that certain Guaranty of Payment -- Xx. 0 ("Xxxxxxxx Xx.
0"); and
WHEREAS, Xxxx Xxxxxxx, Xxxxx X. Xxxxxxx and Xxxxxx X. Xxxxxxx
(collectively, the "Individual Guarantors") have executed and delivered a
Guaranty of Payment, dated as of May __, 2000 (the "Acorn Guaranty"), to provide
for the Individual Guarantors to guarantee certain portions of the Obligations
of Borrower under the Notes and the Credit Agreement.
NOW THEREFORE, in consideration of the premises and the
benefits to be
2
derived from the making of the Loans by the Banks to Borrower, and in order to
induce the Administrative Agent, the Documentation Agent and the Banks to enter
into the Credit Agreement and the other Loan Documents, the Guarantor hereby
agrees as follows:
1.(a) Subject to the provisions of Section 2 hereof,
Guarantor, on behalf of itself and its successors and assigns, hereby
irrevocably, absolutely and unconditionally guarantees the full and punctual
payment when due, whether at stated maturity or otherwise, of all Obligations of
Borrower now or hereafter existing under the Notes and the Credit Agreement, for
principal and/or interest as well as any and all other amounts due thereunder,
including, without limitation, all indemnity obligations of Borrower thereunder,
and any and all reasonable costs and expenses (including, without limitation,
reasonable attorneys' fees and disbursements) incurred by the Administrative
Agent, the Documentation Agent or the Banks in enforcing their rights under this
Guaranty (all of the foregoing obligations being the "Guaranteed Obligations").
(b) Notwithstanding anything to the contrary contained in this
Guaranty (but subject to the proviso contained in this Section 1(b)), in no
event shall Guarantor be obligated to make any payment under this Guaranty until
all of the following have occurred:
(1) the Banks shall be entitled to receive payment from
the Individual Guarantors in accordance with the provisions of the Acorn
Guaranty; and
(2) the Banks shall have made demand for payment under the
Acorn Guaranty to the Individual Guarantors and shall not have received such
payment in full in immediately available funds within thirty (30) days after the
making of such demand;
provided, however, that, notwithstanding the preceding clauses (1) and (2), the
Administrative Agent on behalf of the Banks shall be entitled to immediate
payment under this Guaranty in the event Borrower or any of its Consolidated
Subsidiaries (as defined in the Credit Agreement) or Investment Affiliates (as
defined in the Credit Agreement) shall transfer any assets to Guarantor in
violation of the terms of the Credit Agreement.
2. Notwithstanding anything to the contrary contained in this
Guaranty, the liability of Guarantor under this Guaranty (other than pursuant to
Section 20(e) hereof) on account of the Guaranteed Obligations shall not at any
time exceed an amount equal to the aggregate amount for which the Individual
Guarantors are liable under the Acorn Guaranty at such time after giving effect
to Section 1(b) of the Acorn Guaranty and after giving effect to any payment
made on account of the Guaranteed Obligations which reduce the amount for which
the Individual Guarantors are liable under the Acorn Guaranty.
3. It is agreed that, subject to the provisions of Sections
1(b) and 2 hereof, the Guaranteed Obligations of Guarantor hereunder shall be
enforceable against Guarantor and its successors and assigns without the
necessity for any suit or proceeding of any kind or nature whatsoever brought by
the Administrative Agent or any of the Banks against Borrower or its respective
successors or assigns or any other party or against any security for the payment
and
2
3
performance of the Guaranteed Obligations and without the necessity of any
notice of non-payment or non-observance or of any notice of acceptance of this
Guaranty or of any notice or demand to which Guarantor might otherwise be
entitled (including, without limitation, diligence, presentment, notice of
maturity, extension of time, change in nature or form of the Guaranteed
Obligations, acceptance of further security, release of further security,
imposition or agreement arrived at as to the amount of or the terms of the
Guaranteed Obligations, notice of adverse change in Borrower's financial
condition and any other fact which might materially increase the risk to
Guarantor), all of which Guarantor hereby expressly waives; and Guarantor hereby
expressly agrees that the validity of this Guaranty and the obligations of
Guarantor hereunder shall in no way be terminated, affected, diminished,
modified or impaired by reason of the assertion of or the failure to assert by
the Administrative Agent or any of the Banks against Borrower or its respective
successors or assigns, any of the rights or remedies reserved to the
Administrative Agent or any of the Banks pursuant to the provisions of the Loan
Documents except to the extent provided in Section 1(b) hereof to the contrary.
Guarantor agrees that any notice or directive given at any time to the
Administrative Agent or any of the Banks which is inconsistent with the waiver
in the immediately preceding sentence shall be void and may be ignored by the
Administrative Agent and the Banks, and, in addition, may not be pleaded or
introduced as evidence in any litigation relating to this Guaranty for the
reason that such pleading or introduction would be at variance with the written
terms of this Guaranty, unless the Administrative Agent has specifically agreed
otherwise in a writing, signed by a duly authorized officer. Guarantor
specifically acknowledges and agrees that the foregoing waivers are of the
essence of this transaction and that, but for this Guaranty and such waivers,
the Administrative Agent and the Banks would have declined to execute and
deliver the Loan Documents.
4. Guarantor waives, and covenants and agrees that, except to
the extent required to enforce or assure compliance with the provisions and
conditions of Sections 1(b) and 2 hereof, it will not at any time insist upon,
plead or in any manner whatsoever claim or take the benefit or advantage of, any
and all appraisal, valuation, stay, extension, marshalling-of-assets or
redemption laws, or right of homestead or exemption, whether now or at any time
hereafter in force, which may delay, prevent or otherwise affect the performance
by Guarantor of its obligations under, or the enforcement by the Administrative
Agent or any of the Banks of, this Guaranty. Guarantor further covenants and
agrees not to set up or claim any defense, counterclaim, offset, setoff or other
objection of any kind to any action, suit or proceeding in law, equity or
otherwise, or to any demand or claim that may be instituted or made by the
Administrative Agent or any of the Banks other than the defense of the actual
timely payment and performance by Borrower of the Guaranteed Obligations
hereunder, except to the extent required to enforce or assure compliance with
the provisions and conditions of Sections 1(b) and 2 hereof; provided, however,
that the foregoing shall not be deemed a waiver of Guarantor's right to assert
any compulsory counterclaim, if such counterclaim is compelled under local law
or rule of procedure, nor shall the foregoing be deemed a waiver of Guarantor's
right to assert any claim which would constitute a defense, setoff, counterclaim
or crossclaim of any nature whatsoever against Administrative Agent or any Bank
in any separate action or proceeding. Guarantor represents, warrants and agrees
that, as of the date hereof, its obligations under this Guaranty are not subject
to any counterclaims, offsets or defenses against the Administrative
3
4
Agent or any Bank of any kind.
5. The provisions of this Guaranty are for the benefit of the
Administrative Agent, the Documentation Agent and the Banks and their successors
and permitted assigns, and nothing herein contained shall impair as between
Borrower and the Administrative Agent, the Documentation Agent and the Banks the
obligations of Borrower under the Loan Documents.
6. Subject to the provisions of Section 2 hereof, this
Guaranty shall be a continuing, unconditional and absolute guaranty and the
liability of Guarantor hereunder shall in no way be terminated, affected,
modified, impaired or diminished by reason of the happening, from time to time,
of any of the following, although without notice or the further consent of
Guarantor:
(a) any assignment, amendment, modification or waiver of or
change in any of the terms, covenants, conditions or provisions of any
of the Guaranteed Obligations or the Loan Documents or the invalidity
or unenforceability of any of the foregoing; or
(b) any extension of time that may be granted by the
Administrative Agent to Borrower, any guarantor, or their respective
successors or assigns, heirs, executors, administrators or personal
representatives; or
(c) any action which the Administrative Agent or the
Documentation Agent may take or fail to take under or in respect of any
of the Loan Documents or by reason of any waiver of, or failure to
enforce any of the rights, remedies, powers or privileges available to
the Administrative Agent or the Documentation Agent under this Guaranty
or available to the Administrative Agent or the Documentation Agent at
law, equity or otherwise, or any action on the part of the
Administrative Agent or the Documentation Agent granting indulgence or
extension in any form whatsoever; or
(d) any sale, exchange, release, or other disposition of any
property pledged, mortgaged or conveyed, or any property in which the
Administrative Agent and/or the Banks have been granted a lien or
security interest to secure any indebtedness of Borrower to the
Administrative Agent and/or the Banks; or
(e) any release of any person or entity (other than Borrower)
who may be liable in any manner for the payment and collection of any
amounts owed by Borrower to the Administrative Agent, the Documentation
Agent and/or the Banks; or
(f) except as may be required under the Acorn Guaranty, the
application of any sums by whomsoever paid or however realized to any
amounts owing by Borrower to the Administrative Agent, the
Documentation Agent and/or the Banks under the Loan Documents in such
manner as the Administrative Agent shall determine in its sole
discretion; or
4
5
(g) Borrower's or any guarantor's voluntary or involuntary
liquidation, dissolution, sale of all or substantially all of their
respective assets and liabilities, appointment of a trustee, receiver,
liquidator, sequestrator or conservator for all or any part of
Borrower's or Guarantor's assets, insolvency, bankruptcy, assignment
for the benefit of creditors, reorganization, arrangement, composition
or readjustment, or the commencement of other similar proceedings
affecting Borrower or any guarantor or any of the assets of any of
them, including, without limitation, (i) the release or discharge of
Borrower or any guarantor from the payment and performance of their
respective obligations under any of the Loan Documents by operation of
law, or (ii) the impairment, limitation or modification of the
liability of Borrower or any guarantor in bankruptcy, or of any remedy
for the enforcement of the Guaranteed Obligations under any of the Loan
Documents, or Guarantor's liability under this Guaranty, resulting from
the operation of any present or future provisions of the Bankruptcy
Code or other present or future federal, state or applicable statute or
law or from the decision in any court; or
(h) any improper disposition by Borrower of the proceeds of
the Loans, it being acknowledged by Guarantor that the Administrative
Agent, Documentation Agent or any Bank shall be entitled to honor any
request made by Borrower for a disbursement of such proceeds and that
neither the Administrative Agent, Documentation Agent nor any Bank
shall have any obligation to see the proper disposition by Borrower of
such proceeds.
7. Guarantor agrees that if at any time all or any part of any
payment at any time received by the Administrative Agent from Borrower or
Guarantor under or with respect to this Guaranty is or must be rescinded or
returned by the Administrative Agent, Documentation Agent or any Bank for any
reason whatsoever (including, without limitation, the insolvency, bankruptcy or
reorganization of Borrower or Guarantor), then Guarantor's obligations hereunder
shall, to the extent of the payment rescinded or returned, be deemed to have
continued in existence notwithstanding such previous receipt by such party, and
Guarantor's obligations hereunder shall continue to be effective or reinstated,
as the case may be, as to such payment, as though such previous payment had
never been made.
8. Until this Guaranty is terminated pursuant to the terms
hereof, Guarantor (i) shall have no right of subrogation against Borrower or any
entity comprising same by reason of any payments or acts of performance by
Guarantor in compliance with the obligations of Guarantor hereunder, (ii) waives
any right to enforce any remedy which Guarantor now or hereafter shall have
against Borrower or any entity comprising same by reason of any one or more
payment or acts of performance in compliance with the obligations of Guarantor
hereunder and (iii) from and after an Event of Default (as defined in the Credit
Agreement), subordinates any liability or indebtedness of Borrower or any entity
comprising same now or hereafter held by Guarantor or any affiliate of Guarantor
to the obligations of Borrower under the Loan Documents. The foregoing, however,
shall not be deemed in any way to limit any rights that Guarantor may have
pursuant to the Agreement of Limited Partnership of Borrower or which it may
have at law or in equity with respect to any other partners of Borrower. Prior
to or
5
6
simultaneously with the receipt of payment from Guarantor hereunder, the Banks
shall assign to Guarantor all of their rights, to the extent of such payment
from Guarantor, against the Individual Guarantors under the Acorn Guaranty.
9. Guarantor represents and warrants to the Administrative
Agent, the Documentation Agent and the Banks with the knowledge that the
Administrative Agent, the Documentation Agent and the Banks are relying upon the
same, as follows:
(a) as of the date hereof, Guarantor is the sole managing
general partner of Borrower;
(b) based upon such relationships, Guarantor has determined
that it is in its best interests to enter into this Guaranty;
(c) this Guaranty is necessary and convenient to the conduct,
promotion and attainment of Guarantor's business, and is in furtherance
of Guarantor's business purposes;
(d) the benefits to be derived by Guarantor from Borrower's
access to funds made possible by the Loan Documents are at least equal
to the obligations undertaken pursuant to this Guaranty;
(e) Guarantor is solvent and has full power and legal right to
enter into this Guaranty and to perform its obligations under the term
hereof and (i) Guarantor is organized and validly existing under the
laws of the State of Maryland, (ii) Guarantor has complied with all
provisions of applicable law in connection with all aspects of this
Guaranty, and (iii) the person executing this Guaranty has all the
requisite power and authority to execute and deliver this Guaranty;
(f) to the best of Guarantor's knowledge, there is no action,
suit, proceeding, or investigation pending or threatened against or
affecting Guarantor at law, in equity, in admiralty or before any
arbitrator or any governmental department, commission, board, bureau,
agency or instrumentality (domestic or foreign) which is likely to
materially and adversely impair the ability of Guarantor to perform its
obligations under this Guaranty;
(g) the execution and delivery of and the performance by
Guarantor of its obligations under this Guaranty have been duly
authorized by all necessary action on the part of Guarantor and do not
(i) violate any provision of any law, rule, regulation (including,
without limitation, Regulation U or X of the Board of Governors of the
Federal Reserve System of the United States), order, writ, judgment,
decree, determination or award presently in effect having applicability
to Guarantor or the organizational documents of Guarantor the
consequences of which violation is likely to materially and adversely
impair the ability of Guarantor to perform its obligations under this
Guaranty or (ii) violate or conflict with, result in a breach of or
constitute (with due
6
7
notice or lapse of time or both) a default under any indenture,
agreement or other instrument to which Guarantor is a party, or by
which Guarantor or any of its property is bound, the consequences of
which violation, conflict, breach or default is likely to materially
and adversely impair the ability of Guarantor to perform its
obligations under this Guaranty;
(h) this Guaranty has been duly executed by Guarantor and
constitutes the legal, valid and binding obligation of Guarantor,
enforceable against it in accordance with its terms except as
enforceability may be limited by applicable insolvency, bankruptcy or
other laws affecting creditors' rights generally or general principles
of equity, whether such enforceability is considered in a proceeding in
equity or at law;
(i) no authorization, consent, approval, license or formal
exemption from, nor any filing, declaration or registration with, any
Federal, state, local or foreign court, governmental agency or
regulatory authority is required in connection with the making and
performance by Guarantor of this Guaranty, except those which have
already been obtained; and
(j) Guarantor is not an "investment company" as that term is
defined in, nor is it otherwise subject to regulation under, the
Investment Company Act of 1940, as amended.
10. Subject to the terms and conditions of the Credit
Agreement, and in conjunction therewith, the Administrative Agent, Documentation
Agent or any Bank may assign any or all of its rights under this Guaranty. In
the event of any such assignment, the Administrative Agent shall give Guarantor
prompt notice of same. If the Administrative Agent elects to sell all the Loans
or participations in the Loans and the Loan Documents, including this Guaranty,
the Administrative Agent, Documentation Agent or any Bank may forward to each
purchaser and prospective purchaser all documents and information relating to
this Guaranty or to Guarantor, whether furnished by Borrower or Guarantor or
otherwise, subject to the terms and conditions of the Credit Agreement.
11. Guarantor agrees, upon the written request of the
Administrative Agent, to execute and deliver to the Administrative Agent, from
time to time, any modification or amendment hereto or any additional instruments
or documents reasonably considered necessary by the Administrative Agent or its
counsel to cause this Guaranty to be, become or remain valid and effective in
accordance with its terms, provided, that, any such modification, amendment,
additional instrument or document shall not increase Guarantor's obligations or
diminish its rights hereunder and shall be reasonably satisfactory as to form to
Guarantor and to Guarantor's counsel.
12. The representations and warranties of Guarantor set forth
in this Guaranty shall survive until this Guaranty shall terminate in
accordance with the terms hereof.
7
8
13. This Guaranty and Guaranty No. 1 contain the entire
agreement among the parties with respect to the subject matter hereof and
supersede all prior agreements relating to such subject matter and may not be
modified, amended, supplemented or discharged except by a written agreement
signed by Guarantor and the Administrative Agent.
14. If all or any portion of any provision contained in this
Guaranty shall be determined to be invalid, illegal or unenforceable in any
respect for any reason, such provision or portion thereof shall be deemed
stricken and severed from this Guaranty and the remaining provisions and
portions thereof shall continue in full force and effect.
15. This Guaranty may be executed in counterparts which
together shall constitute the same instrument.
16. All notices, requests and other communications to any
party hereunder shall be in writing (including bank wire, telex, facsimile
transmission followed by telephonic confirmation or similar writing) and shall
be addressed to such party at the address set forth below or to such other
address as may be identified by any party in a written notice to the others:
If to Guarantor Equity Office Properties Trust
Xxx Xxxxx Xxxxxxxxx Xxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attn: Chief Financial Officer
With Copies of
Notices to Guarantor to: Equity Office Properties Trust
Two Xxxxx Xxxxxxxxx Xxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attn: Chief Legal Counsel
and
Xxxxx Xxxxxxx Xxxxxxx & Xxxxx
000 Xxxxx XxXxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attn: Xxxxx X. Xxxxxx, Esq.
If to the
Administrative Agent: Bank of America, N.A.
000 Xxxx Xxxxxx (TXI-492-14-05)
Xxxxxx, Xxxxx 00000-0000
Attn: Xxxxxxx Xxxxxxxxxx
Facsimile: (000) 000-0000
Each such notice, request or other communication shall be
effective (i) if given by telex or facsimile transmission, when such telex or
facsimile is transmitted to the telex
8
9
number or facsimile number specified in this Section and the appropriate
answerback or facsimile confirmation is received, (ii) if given by certified
registered mail, return receipt requested, with first class postage prepaid,
addressed as aforesaid, upon receipt or refusal to accept delivery, (iii) if
given by a nationally recognized overnight carrier, 24 hours after such
communication is deposited with such carrier with postage prepaid for next day
delivery, or (iv) if given by any other means, when delivered at the address
specified in this Section.
17. Any acknowledgment or new promise, whether by payment of
principal or interest or otherwise by Borrower or Guarantor, with respect to the
Guaranteed Obligations shall, if the statute of limitations in favor of
Guarantor against the Administrative Agent shall have commenced to run, toll the
running of such statute of limitations, and if the period of such statute of
limitations shall have expired, prevent the operation of such statute of
limitations.
18. This Guaranty shall be binding upon Guarantor and its
successors and assigns and shall inure to the benefit of the Administrative
Agent, the Documentation Agent and the Banks and their successors and permitted
assigns.
19. The failure of the Administrative Agent to enforce any
right or remedy hereunder, or promptly to enforce any such right or remedy,
shall not constitute a waiver thereof, nor give rise to any estoppel against the
Administrative Agent, nor excuse Guarantor from its obligations hereunder. Any
waiver of any such right or remedy to be enforceable against the Administrative
Agent must be expressly set forth in a writing signed by the Administrative
Agent.
20. (a) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.
(b) Any legal action or proceeding with respect to this
Guaranty and any action for enforcement of any judgment in respect thereof may
be brought in the courts of the State of New York or of the United States of
America for the Southern District of New York, and, by execution and delivery of
this Guaranty, the Guarantor hereby accepts for itself and in respect of its
property, generally and unconditionally, the non-exclusive jurisdiction of the
aforesaid courts and appellate courts from any thereof. The Guarantor
irrevocably consents to the service of process out of any of the aforementioned
courts in any such action or proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to the Guarantor at its address
for notices set forth herein. The Guarantor hereby irrevocably waives any
objection which it may now or hereafter have to the laying of venue of any of
the aforesaid actions or proceedings arising out of or in connection with this
Guaranty brought in the courts referred to above and hereby further irrevocably
waives and agrees not to plead or claim in any such court that any such action
or proceeding brought in any such court has been brought in an inconvenient
forum. Nothing herein shall affect the right of the Administrative Agent to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Guarantor in any other
jurisdiction.
9
10
(c) GUARANTOR HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF
ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED UPON OR ARISING OUT OF THIS
GUARANTY. IT IS HEREBY ACKNOWLEDGED BY GUARANTOR THAT THE WAIVER OF A JURY TRIAL
IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT TO ACCEPT THIS GUARANTY
AND THAT THE LOANS MADE BY THE BANKS ARE MADE IN RELIANCE UPON SUCH WAIVER.
GUARANTOR FURTHER WARRANTS AND REPRESENTS THAT SUCH WAIVER HAS BEEN KNOWINGLY
AND VOLUNTARILY MADE, FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF
LITIGATION, THIS GUARANTY MAY BE FILED BY THE ADMINISTRATIVE AGENT IN COURT AS A
WRITTEN CONSENT TO A NON-JURY TRIAL.
(d) Guarantor does hereby further covenant and agree to
and with the Administrative Agent that, except as may be required to satisfy the
conditions set forth in Section 1(b) hereof, Guarantor may be joined in any
action against Borrower in connection with the Loan Documents and that recovery
may be had against Guarantor in such action or in any independent action against
Guarantor (with respect to the Guaranteed Obligations), without the
Administrative Agent first pursuing or exhausting any remedy or claim against
Borrower or its successors or assigns. Guarantor also agrees that, in an action
brought with respect to the Guaranteed Obligations in any jurisdiction, it shall
be conclusively bound by the judgment in any such action by the Administrative
Agent (wherever brought) against Borrower or its successors or assigns, as if
Guarantor were a party to such action, even though Guarantor was not joined as a
party in such action.
(e) Guarantor agrees to pay all reasonable expenses
(including, without limitation, attorneys' fees and disbursements) which may be
incurred by the Administrative Agent, the Documentation Agent or the Banks in
connection with the enforcement of their rights under this Guaranty, whether or
not suit is initiated.
21. Notwithstanding anything to the contrary contained herein,
this Guaranty shall terminate and be of no further force or effect upon the full
performance and payment of the Guaranteed Obligations hereunder. Upon
termination of this Guaranty in accordance with the terms of this Guaranty, the
Administrative Agent promptly shall deliver to Guarantor such documents as
Guarantor or Guarantor's counsel reasonably may request in order to evidence
such termination.
22. All of the Administrative Agent's rights and remedies
under each of the Loan Documents or under this Guaranty are intended to be
distinct, separate and cumulative and no such right or remedy therein or herein
mentioned is intended to be in exclusion of or a waiver of any other right or
remedy available to the Administrative Agent.
23. The Guarantor shall not use any assets of an "employee
benefit plan" within the meaning of Section 3(3) of ERISA or a "plan" within the
meaning of Section 4975(e)(1) of the Internal Revenue Code (the "Code") to repay
or secure the Loan, the Note, the
10
11
Obligations or this Guaranty. The Guarantor shall not assign, sell, pledge,
encumber, transfer, hypothecate or otherwise dispose of any of its rights or
interests (direct or indirect) in Borrower, or attempt to do any of the
foregoing or suffer any of the foregoing, or permit any party with a direct or
indirect interest or right in Borrower to do any of the foregoing, if such
action would cause the Note, the Loan, the Obligations, this Guaranty, or any of
the Loan Documents or the exercise of any of the Administrative Agent's,
Documentation Agent's or Bank's rights in connection therewith, to constitute a
prohibited transaction under ERISA or the Code (unless the Guarantor furnishes
to the Administrative Agent a legal opinion satisfactory to the Administrative
Agent that the transaction is exempt from the prohibited transaction provisions
of ERISA and the Code (and for this purpose, the Administrative Agent,
Documentation Agent and the Banks, by accepting the benefits of this Guaranty,
hereby agree to supply Guarantor all relevant non-confidential, factual
information reasonably necessary to such legal opinion and reasonably requested
by Guarantor) or would otherwise result in the Administrative Agent, the
Documentation Agent or any of the Banks being deemed in violation of Sections
404 or 406 of ERISA or Section 4975 of the Code or would otherwise result in the
Administrative Agent, the Documentation Agent or any of the Banks being a
fiduciary or party in interest under ERISA or a "disqualified person" as defined
in Section 4975(e)(2) of the Code with respect to an "employee benefit plan"
within the meaning of Section 3(3) of ERISA or a "plan" within the meaning of
Section 4975(e)(1) of the Code. The Guarantor shall indemnify and hold each of
the Administrative Agent, the Documentation Agent and the Banks free and
harmless from and against all loss, costs (including attorneys' fees and
expenses), expenses, taxes and damages (including consequential damages) that
each of the Administrative Agent, the Documentation Agent and the Banks may
suffer by reason of the investigation, defense and settlement of claims and in
obtaining any prohibited transaction exemption under ERISA necessary in
Administrative Agent's reasonable judgment as a result of Guarantor's action or
inaction or by reason of a breach of the foregoing provisions by Guarantor.
24. This Guaranty shall become effective simultaneously with
the making of the initial Loans under the Credit Agreement.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Guaranty as of the date and year first above written.
GUARANTOR:
EQUITY OFFICE PROPERTIES TRUST
By: /s/ XXXXXXX FEAR
------------------------------
Name: Xxxxxxx Fear
Title: Senior Vice President, Treasurer
ACCEPTED:
S-1
12
BANK OF AMERICA, N.A.
By: /s/ XXXXXXX XXXXXXXXXX
--------------------------------
Name: Xxxxxxx Xxxxxxxxxx
Title: Vice President
S-2
13
ACKNOWLEDGMENT FOR GUARANTOR
----------------------------
STATE OF ILLINOIS )
) SS.
COUNTY OF XXXX )
On May ___, 2000, before me personally came
_________________________, to me known to be the person who executed the
foregoing instrument, and who, being duly sworn by me, did depose and say that
he is ____________________ of Equity Office Properties Trust, and that he
executed the foregoing instrument in the organization's name, and that he had
authority to sign the same, and he acknowledged to me that he executed the same
as the act and deed of said organization for the uses and purposes therein
mentioned.
[Seal]
-------------------------------
Notary Public
S-3
