EXHIBIT 99.2
FIRST AMENDMENT TO CREDIT AGREEMENT
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (the "Amendment") is made as of
the 20/th/ day of June, 2000, by and among Xxxxxxx X. Xxxxx Residential Realty
L.P., a Delaware limited partnership (the "Borrower"), PNC Bank, National
Association, as Administrative Agent and as a Bank, Bank of America, N.A., as
Syndication Agent and as a Bank, U.S. Bank National Association, as
Documentation Agent and as a Bank, and the other Banks which are parties to the
Agreement (as hereinafter defined).
W I T N E S S E T H:
WHEREAS, as of November 20, 1998, the above-referenced parties entered into
the Credit Agreement (the "Agreement") which provides for a $100,000,000
unsecured revolving line of credit to be made available by the Banks to the
Borrower; and
WHEREAS, the parties have agreed to amend the Agreement to reflect certain
matters which have been agreed to by the parties, including, without limitation,
a modification to the covenant contained in Section 5.8(f) of the Agreement.
NOW, THEREFORE, the parties hereto, for good and valuable consideration,
the receipt and sufficiency thereof being hereby acknowledged, and intending to
be legally bound hereby, covenant and agree as follows:
1. All capitalized terms employed herein shall have the meanings ascribed
thereto in the Agreement unless defined to the contrary herein.
2. Section 5.8(f) of the Agreement is hereby amended to provide in full
as follows, effective for the period from April 1, 2000, through September 30,
2000:
(f) Distributions.
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(i) Subject to Section 5.8(f)(ii) below, aggregate distributions
to holders of all common and preferred OP Units of Borrower shall not exceed the
greater of (i) ninety-percent (90%) of Funds from Operations, for the four (4)
consecutive Fiscal Quarters ending on the last day of each Fiscal Quarter, or
(ii) the minimum amount that must be distributed to all partners of Borrower so
that CESRRI will receive sufficient distributions to enable it to distribute to
its shareholders the amount required to remain qualified as a real estate
investment trust as defined in Section 856 of the Internal Revenue Code (or any
successor provision thereto).
For purpose of this Section 5.8, the term "distributions" shall mean
and include all dividends and other distributions to, and the repurchase of
stock or limited partnership interests from, the holder of any equity interests
in Borrower or CESRRI. Notwithstanding the above, distributions shall not
include payments of cash in connection with the redemption or repurchase of OP
Units where the Borrower is obligated to any Person (other than CESRRI) to do so
in accordance with the provisions of Borrower's limited partnership agreement or
the purchase of stock for the purpose of obtaining the consideration to be
provided to a Person transferring a Property to the Borrower or a Consolidated
Subsidiary where the market price of such stock is below the value attributed to
such stock in the purchase agreement.
(ii) Aggregate distributions during the continuance of any Event
of Default shall not exceed the amount described in clause (ii) of Section
5.8(f)(i) above, provided that the parties hereto expressly acknowledge that
this Section 5.8(f)(ii) shall in no event limit or restrict in any way any of
Administrative Agent's or any Bank's rights, remedies or recourse under this
Agreement or any other Loan Document.
3. Effective on October 1, 2000, the foregoing amendment to Section
5.8(f) of the Agreement shall be rescinded and thereafter Section 5.8(f) shall
be reinstated in its form as contained in the Agreement as originally executed.
4. Borrower represents and warrants that the representations and
warranties contained in Article IV of the Agreement are true and correct in all
material respects on and as of the date hereof as though made on and as of such
date. Borrower certifies that no Default or Event of Default has occurred and is
continuing on and as of the date hereof.
5. Except as specifically modified herein, the Agreement is hereby
ratified and confirmed and shall remain in full force and effect.
6. The term "Agreement" as used in the Agreement, the other Loan
Documents and any other instrument, document or writing furnished to the
Administrative Agent or the Banks by the Borrower shall mean the Agreement as
hereby amended.
7. This Amendment may be executed by the parties hereto in multiple
counterparts, and, when so executed by all of the parties, such multiple
counterparts shall be deemed to constitute a single, integrated agreement.
8. This Amendment (a) shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns (provided,
however, that no party may assign its rights hereunder except in accordance with
the Agreement); (b) may be modified only in accordance with the Agreement; (c)
shall be governed and construed in accordance with the laws
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of the Commonwealth of Virginia; and (d) embodies the entire agreement and
understanding between the parties with respect to the subject matter hereof and
supersedes all prior agreements, consents and understandings relating to such
subject matter.
IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as
of the day and year first above written.
XXXXXXX X. XXXXX RESIDENTIAL REALTY L.P.,
a Delaware limited partnership
By: Xxxxxxx X. Xxxxx Residential Realty, Inc., a
Maryland corporation, its general partner
By: ___________________________________
X.X. Xxxxxx,
Executive Vice President and
Chief Financial Officer
PNC BANK, NATIONAL ASSOCIATION, as Administrative
Agent and as a Bank
By:_________________________________________
Name:____________________________________
Title:___________________________________
BANK OF AMERICA, N.A, as Syndication
Agent and as a Bank
By:_________________________________________
Name:____________________________________
Title:___________________________________
U.S. BANK NATIONAL ASSOCIATION, as Documentation Agent
and as a Bank
By:_________________________________________
Name:____________________________________
Title:___________________________________
FLEET NATIONAL BANK
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By:_________________________________________
Name:____________________________________
Title:___________________________________
CHEVY CHASE BANK, F.S.B.
By:_________________________________________
Name:____________________________________
Title:___________________________________
FIRST UNION NATIONAL BANK
By:_________________________________________
Name:____________________________________
Title:___________________________________
COMMERZBANK AKTIENGESELLSCHAFT,
NEW YORK BRANCH
By:_________________________________________
Name:____________________________________
Title:___________________________________
SUNTRUST BANK, successor in
interest to CRESTAR BANK
By:_________________________________________
Name:____________________________________
Title:___________________________________
THE CHASE MANHATTAN BANK
By:_________________________________________
Name:____________________________________
Title:___________________________________
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CONSENT
The undersigned, having executed and delivered the Joinder attached to the
Credit Agreement referenced in the foregoing First Amendment to Credit
Agreement, hereby consents to the First Amendment to Credit Agreement and to the
amendments to the Credit Agreement contained therein, and hereby ratifies and
confirms the undersigned's obligations under the Joinder.
XXXXXXX X. XXXXX RESIDENTIAL REALTY, INC.,
a Maryland corporation
By:_______________________________________
X.X. Xxxxxx
Executive Vice President and
Chief Financial Officer
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