SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: July 15, 1998
Date of earliest event reported: July 9, 1998
First Industrial, L.P.
(Exact name of registrant as specified in its charter)
Delaware 333-21873 36-3924586
(State or other (Commission File (I.R.S. Employer
jurisdiction of organization) Number) Identification No.)
311 S. Wacker Drive, Suite 4000
Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 344-4300
(Registrant's telephone number, including area code)
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Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit
Number Exhibit
1 Underwriting Agreement, dated July 9, 1998, relating to 7.60% Notes due
2028, between First Industrial, L.P. (the "Company"), First Industrial
Realty Trust, Inc., J.P. Morgan Securities Inc., Donaldson, Lufkin &
Jenrette Securities Corporation, First Chicago Capital Markets, Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and Warburg Dillon Read
LLC.
4.1 Supplemental Indenture No. 5, dated as of July 14, 1998, between the
Company and U.S. Bank Trust National Association, relating to the 7.60%
Notes due 2028.
4.2 7.60% Notes due 2028.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST INDUSTRIAL, L.P.
By: First Industrial Realty Trust, Inc.
By: /s/ Michael J. Havala
------------------------------------
Name: Michael J. Havala
Title: Chief Financial Officer
Date: July 15, 1998
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Exhibit Index
Exhibit
Number Exhibit
1 Underwriting Agreement, dated July 9, 1998, relating to 7.60% Notes due
2028, between First Industrial, L.P. (the "Company"), First Industrial
Realty Trust, Inc., J.P. Morgan Securities Inc., Donaldson, Lufkin &
Jenrette Securities Corporation, First Chicago Capital Markets, Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and Warburg Dillon Read
LLC.
4.1 Supplemental Indenture No. 5, dated as of July 14, 1998, between the
Company and U.S. Bank Trust National Association, relating to the 7.60%
Notes due 2028.
4.2 7.60% Notes due 2028.
EXECUTION COPY
First Industrial, L.P.
$200,000,000 of 7.60% Notes due 2028
Underwriting Agreement
July 9, 1998
J.P. MORGAN SECURITIES INC.
DONALDSON, LUFKIN & JENRETTE
SECURITIES CORPORATION
FIRST CHICAGO CAPITAL MARKETS, INC.
MERRILL LYNCH, PIERCE FENNER & SMITH
INCORPORATED
WARBURG DILLON READ LLC
c/o J.P. Morgan Securities Inc.
60 Wall Street
New York, New York 10260
Ladies and Gentlemen:
First Industrial, L.P., a Delaware limited partnership (the "Operating
Partnership"), by this agreement (the "Agreement") proposes to issue and sell to
the underwriters named in Schedule II hereto (collectively, the "Underwriters"),
the principal amount of its debt securities identified in Schedule I hereto (the
"Securities"), each as specified in Schedule I hereto, to be issued under the
indenture as supplemented by the fifth supplemental indenture thereto
(collectively, the "Indenture") between the Operating Partnership and U.S. Bank
Trust National Association, as trustee (the "Trustee").
The Operating Partnership and First Industrial Realty Trust, Inc., a
Maryland corporation and the sole general partner of the Operating Partnership
(the "Company"), have prepared and filed with the Securities and Exchange
Commission (the "Commission") in accordance with the provisions of Securities
Act of 1933, as amended, and the rules and regulations of the Commission
thereunder (collectively, the "Securities Act"), a registration statement (the
file number of which is set forth in Schedule I hereto) on Form S-3, relating to
certain securities (the "Shelf Securities") to be issued from time to time by
the Company or the Operating Partnership, as the case may be. The Operating
Partnership also has filed with, or proposes to file with, the Commission
pursuant to Rule 424 under the Securities Act ("Rule 424") a prospectus
supplement specifically
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relating to the Securities (a "Prospectus Supplement"). The registration
statement as amended to the date of this Agreement and including any
registration statement filed pursuant to Rule 462(b) under the Securities Act (a
"Rule 462(b) Registration Statement") is hereinafter referred to as the
"Registration Statement" and the related prospectus covering the Shelf
Securities in the form first used to confirm sales of the Securities is
hereinafter referred to as the "Basic Prospectus." The Basic Prospectus as
supplemented by any applicable Prospectus Supplement specifically relating to
the Securities in the form first used to confirm sales of the Securities is
hereinafter referred to as the "Prospectus." Any reference in this Agreement to
the Registration Statement, the Basic Prospectus, any preliminary form of
Prospectus (a "preliminary prospectus") previously filed with the Commission
pursuant to Rule 424 or the Prospectus shall be deemed to refer to and include
the documents incorporated by reference therein pursuant to Item 12 of Form S-3
under the Securities Act which were filed under the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Commission thereunder
(collectively, the "Exchange Act") on or before the date of this Agreement or
the date of the Registration Statement, the Basic Prospectus, any preliminary
prospectus or the Prospectus, as the case may be; and any reference to "amend,"
"amendment" or "supplement" with respect to the Registration Statement, the
Basic Prospectus, any preliminary prospectus or the Prospectus shall be deemed
to refer to and include any documents filed under the Exchange Act after the
date of this Agreement, or the date of the Registration Statement, the Basic
Prospectus, any preliminary prospectus or the Prospectus, as the case may be,
which are deemed to be incorporated by reference therein.
Each of the Company and the Operating Partnership hereby severally agrees
with the Underwriters as follows
1. The Operating Partnership agrees to issue and sell the Securities to the
several Underwriters as hereinafter provided, and each Underwriter, on the basis
of the representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees to purchase, severally and not jointly,
from the Operating Partnership the respective principal amount of Securities set
forth opposite such Underwriter's name in Schedule II hereto at the purchase
price set forth in Schedule I hereto plus accrued interest, if any, from the
date specified in Schedule I hereto to the date of payment and delivery.
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2. The Operating Partnership understands that the several Underwriters
intend (i) to make a public offering of their respective portions of the
Securities and (ii) initially to offer the Securities upon the terms set forth
in the Prospectus.
3. Payment for the Securities shall be made to the Operating Partnership or
to its order in immediately available funds on the date and at the time and
place set forth in Schedule I hereto (or at such other time and place on the
same or such other date, not later than the third Business Day thereafter, as
you and the Operating Partnership may agree in writing). Such payment will be
made upon delivery to, or to you for the respective accounts of, the
Underwriters of the Securities registered in such names and in such
denominations as you shall request not less than two full Business Days prior to
the date of delivery, with any transfer taxes payable in connection with
transfer to the Underwriters duly paid by the Operating Partnership. As used
herein, the term "Business Day" means any day other than a day on which banks
are permitted or required to be closed in New York City or the City of Chicago.
The time and date of such payment and delivery with respect to the Securities
are referred to herein as the "Closing Date." The Securities will be delivered
through the book entry facilities of The Depository Trust Company ("DTC") and
will be made available for inspection by you by 1:00 P.M. New York City time on
the Business Day prior to the Closing Date at such place in New York City as
you, DTC and the Operating Partnership shall agree.
4. The Company and the Operating Partnership, jointly and severally,
represent and warrant to each Underwriter as of the date hereof and the Closing
Date that:
(a) The Company and the Operating Partnership meet the requirements for use
of Form S-3, and the Registration Statement has been declared effective by the
Commission;
(b) The Registration Statement and the Prospectus, including the financial
statements, schedules and related notes included in the Prospectus and, if
applicable, any Term Sheet to the Prospectus, as of the date hereof and at the
time the Registration Statement became effective, and when any post-effective
amendment to the Registration Statement or Rule 462(b) Registration Statement
becomes effective or any amendment or supplement to the Prospectus is filed with
the Commission, did or will comply in all material respects with all applicable
provisions of the Securities Act and the Trust Indenture Act of 1939, as
amended, and the rules and regulations of the Commission there-
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under (the "TIA") and will contain all statements required to be stated therein
in accordance with the Securities Act and the TIA. The Prospectus, including the
financial statements, schedules and related notes included or incorporated by
reference in the Prospectus, and if applicable, any Term Sheet to the
Prospectus, as of the date hereof and at the time the Registration Statement
became effective, and at the Closing Date, and when any post-effective amendment
to the Registration Statement or Rule 462(b) Registration Statement becomes
effective or any amendment or supplement to the Prospectus is filed with the
Commission, did or will comply in all material respects with all applicable
provisions of the Securities Act and the TIA and will contain all statements
required to be stated therein in accordance with the Securities Act and the TIA.
On the date the Registration Statement was declared effective, on the date
hereof, on the date of filing of any Rule 462(b) Registration Statement and on
the Closing Date, no part of the Registration Statement or any amendment did or
will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein not misleading. On the date the Registration Statement was declared
effective, on the date hereof, as of its date, on the date of filing of any Rule
462(b) Registration Statement and at the Closing Date, the Prospectus did not
and will not contain an untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. If a Rule 462(b)
Registration Statement is filed in connection with the offering and sale of the
Securities, the Company and the Operating Partnership will have complied or will
comply with the requirements of Rule 111 under the Securities Act relating to
the payment of filing fees therefor. The foregoing representations and
warranties in this Section 4(b) do not apply to (i) that part of the
Registration Statement which constitutes the Statement of Eligibility and
Qualification under the TIA (the "Form T-1"), and (ii) any statements or
omissions made in reliance on and in conformity with information relating to any
Underwriter furnished in writing to the Company or the Operating Partnership by
the Underwriters specifically for inclusion in the Registration Statement or
Prospectus or any amendment or supplement thereto. Neither the Company nor the
Operating Partnership has distributed any offering material in connection with
the offering or sale of the Securities other than the Registration Statement,
the preliminary prospectus, the Prospectus or any other materials, if any,
permitted by the Securities Act (which were disclosed to the Underwriters and
the Underwriters' counsel);
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(c) Any preliminary prospectus supplements, filed pursuant to Rule 424
under the Securities Act and each 462(b) Registration Statement, if any,
complied or will comply when so filed in all material respects with all
applicable provisions of the Securities Act; did not contain an untrue statement
of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; each preliminary prospectus and the Prospectus delivered
to the Underwriters for use in connection with the offering of Securities will,
at the time of such delivery, be identical to the electronically transmitted
copies thereof filed with the Commission pursuant to EDGAR, except to the extent
permitted by Regulation S-T;
(d) The documents incorporated or deemed to be incorporated by reference in
the Prospectus pursuant to Item 12 of Form S-3 under the Securities Act, at the
time they were, or hereafter are, filed with the Commission, complied and will
comply in all material respects with the requirements of the Exchange Act, and,
when read together with other information included in, and incorporated by
reference in, the Prospectus, at the time the Registration Statement became
effective, as of the date of the Prospectus and as of the Closing Date, or
during the period specified in Section 5(e) did not and will not include an
untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The foregoing representations and warranties in
this Section 4(d) do not apply to the Form T-1 or to any statements or omissions
made in reliance on and in conformity with information relating to any
Underwriter furnished in writing to the Company or the Operating Partnership by
the Underwriters specifically for inclusion in the Registration Statement or
Prospectus or any amendment or supplement thereto;
(e) The Company has been duly organized and is validly existing as a
corporation under and by virtue of the laws of the State of Maryland, and is in
good standing with the State Department of Assessments and Taxation of Maryland.
The Operating Partnership has been duly organized and is validly existing as a
limited partnership in good standing under and by virtue of the Delaware Revised
Uniform Limited Partnership Act. Each of First Industrial Financing Partnership,
L.P. (the "Financing Partnership"), First Industrial Securities, L.P.
("Securities, L.P."), First Industrial Mortgage Partnership, L.P. (the "Mortgage
Partnership"), First Industrial Indianapolis, L.P. ("FII"), First Industrial
Harrisburg, L.P. ("FIH"), First Industrial Development Services Group, L.P.
("DSG") and First Indus-
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trial Pennsylvania Partnership, L.P. ("FIP") (the Financing Partnership,
Securities, L.P., the Mortgage Partnership, FII, FIH, DSG and FIP are referred
to collectively herein as the "Partnership Subsidiaries") has been duly
organized and is validly existing as a limited partnership in good standing
under and by virtue of the laws of its jurisdiction of organization. F.R.
Development Services, L.L.C. ("FRDS") has been duly organized and is validly
existing as a limited liability company in good standing under and by virtue of
the laws of its jurisdiction of organization. Each of First Industrial
Securities Corporation ("FISC"), First Industrial Finance Corporation ("FIFC"),
First Industrial Mortgage Corporation ("FIM"), First Industrial Pennsylvania
Corporation ("FIPC"), First Industrial Indianapolis Corporation ("FIIC"), First
Industrial Harrisburg Corporation ("FIHC"), FI Development Services Corporation
("FIDSC"), FR Acquisitions, Inc. ("FRA") and First Industrial Management
Corporation ("FIMC," and together with FISC, FIFC, FIM, FIPC, FIIC, FIHC, FIDSC
and FRA are referred to collectively herein as the "Corporate Subsidiaries," and
the Partnership Subsidiaries and the Corporate Subsidiaries are referred to
herein collectively as the "Subsidiaries"), has been duly organized and is
validly existing as a corporation in good standing under and by virtue of the
laws of its jurisdiction of incorporation. Other than the Corporate
Subsidiaries, the Partnership Subsidiaries and FRDS, no entities in which the
Company owns any equity securities constitute, individually or in the aggregate,
a "significant subsidiary" under Rule 1-02 of Regulation S-X promulgated under
the Exchange Act. The Company is the sole general partner of the Operating
Partnership. FIFC is a wholly-owned subsidiary of the Company and is the sole
general partner of the Financing Partnership. FIM is a wholly-owned subsidiary
of the Company and is the sole general partner of the Mortgage Partnership. FISC
is a wholly-owned subsidiary of the Company and is the sole general partner of
Securities, L.P. The Operating Partnership and FISC are the only limited
partners of Securities, L.P. FIPC is a wholly-owned subsidiary of the Company
and is the sole general partner of FIP. FIIC is a wholly-owned subsidiary of the
Company and is the sole general partner of FII. FIHC is a wholly-owned
subsidiary of the Company and is the sole general partner of FIH. FIDSC is a
wholly-owned subsidiary of the Company and is the sole general partner of DSG.
FRDS is a wholly-owned subsidiary of the Operating Partnership. The Operating
Partnership is the sole limited partner of each Partnership Subsidiary (except
for Securities, L.P.). The Company, the Operating Partnership and each of the
Subsidiaries has, and at the Closing Date will have, full corporate, partnership
or limited liability company power and authority, as the case may be, to conduct
all the activities conducted by it, to
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own, lease or operate all the properties and other assets owned, leased or
operated by it and to conduct its business in which it engages or proposes to
engage as described in the Prospectus and the transactions contemplated hereby
and thereby. The Company and each of the Corporate Subsidiaries is, and at the
Closing Date will be, duly qualified or registered to do business and in good
standing as a foreign corporation in all jurisdictions in which the nature of
the activities conducted by it or the character of the properties and assets
owned, leased or operated by it makes such qualification or registration
necessary, except where failure to obtain such qualifications or registration
will not have a material adverse effect on (i) the condition, financial or
otherwise, or the earnings, assets or business affairs or prospects of the
Operating Partnership, Company and their Subsidiaries, taken as a whole or on
the 834 in service properties owned, directly or indirectly, by the Company as
of March 31, 1998 (the "Properties") taken as a whole, (ii) the issuance,
validity or enforceability of the Securities or (iii) the consummation of any of
the transactions contemplated by this Agreement (each a "Material Adverse
Effect"), which jurisdictions of foreign qualification or registration are
attached on Schedule III hereto. The Operating Partnership and each of the
Partnership Subsidiaries is, and at the Closing Date will be, duly qualified or
registered to do business and in good standing as a foreign limited partnership
in all jurisdictions in which the nature of the activities conducted by it or
the character of the assets owned, leased or operated by it makes such
qualification or registration necessary, except where failure to obtain such
qualifications or registration will not have a Material Adverse Effect, which
jurisdictions of foreign qualification or registration are attached on Schedule
III hereto. Complete and correct copies of the articles of incorporation and of
the by-laws of the Company, the certificate of limited partnership and agreement
of limited partnership of the Operating Partnership and the charter documents,
partnership agreements and other organizational documents of the Subsidiaries
and all amendments thereto as have been requested by the Underwriters or their
counsel have been delivered to the Underwriters or their counsel;
(f) The Securities have been duly authorized by the Company, as general
partner of the Operating Partnership, and, when authenticated and delivered by
the Trustee in accordance with the terms of the Indenture, and paid for by the
Underwriters pursuant to this Agreement, such Securities will be valid and
legally binding unsecured obligations of the Operating Partnership entitled to
the benefit of the Indenture and enforceable against the Operating Partnership
in accordance with their re-
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spective terms, subject to (1) the effect of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws now or hereafter in
effect relating to or affecting the rights and remedies of creditors and (2) the
effect of general principles of equity, whether enforcement is considered in a
proceeding in equity or at law, and the discretion of the court before which any
proceeding therefor may be brought; the Indenture has been duly qualified under
the TIA and prior to the issuance of the Securities will be duly authorized,
executed and delivered by the Operating Partnership and the Company, and
assuming due authorization, execution and delivery thereof by the Trustee, will
constitute a valid and legally binding obligation of the Operating Partnership
and the Company, enforceable in accordance with its terms subject to (1) the
effect of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws now or hereafter in effect relating to or
affecting the rights and remedies of creditors and (2) the effect of general
principles of equity, whether enforcement is considered in a proceeding in
equity or at law, and the discretion of the court before which any proceeding
therefor may be brought; the Securities will conform, and the Indenture will
conform, to the statements relating thereto contained in the Prospectus; and the
Securities are in the form contemplated by the Indenture;
(g) As of the Closing Date, the partnership agreement of the Operating
Partnership will have been duly authorized, executed and delivered by the
Company, as general partner and a limited partner and the partnership agreement
of each Partnership Subsidiary will have been duly authorized, validly executed
and delivered by each partner thereto and (assuming in the case of the Operating
Partnership the due authorization, execution and delivery of the partnership
agreement by each limited partner other than the Company) each such partnership
agreement will be a valid, legally binding and enforceable in accordance with
its terms immediately following the Closing Date subject to (i) the effect of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws now or hereafter in effect relating to or affecting the
rights and remedies of creditors and (ii) the effect of general principles of
equity, whether enforcement is considered in a proceeding in equity or at law,
and the discretion of the court before which any proceeding therefor may be
brought. All of the issued and outstanding shares of capital stock of the
Company and each Corporate Subsidiary will have been duly authorized and are
validly issued, fully paid and non-assessable; and (except as described in the
Prospectus) will be owned directly or indirectly (except in the case of the
Company) by the Company or the Operating
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Partnership, as the case may be, free and clear of all security interests, liens
and encumbrances, (except for pledges in connection with the loan agreements of
the Company, the Operating Partnership and the Subsidiaries) and all of the
partnership interests in each Partnership Subsidiary will have been duly
authorized and are validly issued, fully paid, and (except as described in the
Prospectus) will be owned directly or indirectly by the Company or the Operating
Partnership, free and clear of all security interests, liens and encumbrances
(except for pledges in connection with the loan agreements of the Company, the
Operating Partnership and the Subsidiaries);
(h) The financial statements, supporting schedules and related notes
included in, or incorporated by reference in, the Registration Statement and the
Prospectus comply in all material respects with the requirements of the
Securities Act and the Exchange Act, as applicable, and present fairly the
consolidated financial condition of the entity or entities or group presented or
included therein, as of the respective dates thereof, and its consolidated
results of operations and cash flows for the respective periods covered thereby,
are all in conformity with generally accepted accounting principles applied on a
consistent basis throughout the entire period involved, except as otherwise
disclosed in the Prospectus. The financial information and data included in the
Registration Statement and the Prospectus present fairly the information
included or incorporated by reference therein and have been prepared on a basis
consistent, except as may be noted therein, with that of the financial
statements, schedules and notes included or incorporated by reference in the
Registration Statement and the Prospectus and the books and records of the
respective entity or entities or group presented or included therein. Except as
otherwise noted in the Prospectus, pro forma and/or as adjusted financial
information included or incorporated by reference in the Prospectus has been
prepared in accordance with the applicable requirements of the Securities Act
and the American Institute of Certified Public Accountants ("AICPA") guidelines
with respect to pro forma and as adjusted financial information, and includes
all adjustments necessary to present fairly the pro forma and/or as adjusted
financial condition of the entity or entities or group presented or included
therein at the respective dates indicated and the results of operations and cash
flows for the respective periods specified. The Company's and the Operating
Partnership's ratio of earnings to fixed charges included in the Prospectus and
in Exhibit 12 to the Registration Statement have been calculated in compliance
with Item 503(d) of Regulation S-K of the Commission. No other financial
statements (or schedules) of the Company, the Operating Partnership and the
Partnership
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Subsidiaries or any predecessor of the Company and/or the Operating Partnership
and the Partnership Subsidiaries are required by the Act or the Exchange Act to
be included in the Registration Statement or the Prospectus.
PricewaterhouseCoopers L.L.P. (the "Accountants") who have reported on such
financial statements, schedules and related notes, are independent public
accountants with respect to the Company, the Operating Partnership and the
Partnership Subsidiaries as required by the Securities Act;
(i) Subsequent to the respective dates as of which information is given in
the Registration Statement and the Prospectus and prior to the Closing Date, (i)
there has not been and will not have been, except as set forth in or
contemplated by the Registration Statement and the Prospectus, any change in the
capitalization, long term or short term debt or in the capital stock or equity
of each of the Operating Partnership and the Company or any of the Subsidiaries
which would be material to the Operating Partnership, the Company and the
Subsidiaries considered as one enterprise (anything which would be material to
the Operating Partnership, the Company and the Subsidiaries, considered as one
enterprise, being hereinafter referred to as "Material"), (ii) except as
described in the Prospectus, neither the Operating Partnership, the Company nor
any of the Subsidiaries has incurred nor will any of them incur any liabilities
or obligations, direct or contingent, which would be Material, nor has any of
them entered into nor will any of them enter into any transactions, other than
pursuant to this Agreement and the transactions referred to herein or as
contemplated in the Prospectus, which would be Material, (iii) there has not
been any Material Adverse Effect, (iv) except for regular quarterly
distributions on the Company's shares of common stock, par value $0.01 per share
(the "Common Stock"), and the dividends on the shares of the Company's (a)
Series A Cumulative Preferred Stock, par value $.01 per share (the "Series A
Preferred Stock"), (b) Depositary Shares each representing 1/100 of a share of 8
3/4 Series B Cumulative Preferred Stock (the "Series B Preferred Stock"), (c)
Depositary Shares each representing 1/100 of a share of 8-5/8% Series C
Cumulative Preferred Stock (the "Series C Preferred Stock"), (d) Depositary
Shares each representing 1/100 of a share of 7.95% Series D Cumulative Preferred
Stock (the "Series D Preferred Stock") and (e) Depositary Shares each
representing 1/100 of a share of 7.90% Series E Cumulative Preferred Stock (the
"Series E Preferred Stock") the Company has not paid or declared and will not
pay or declare any dividends or other distributions of any kind on any class of
its capital stock, and (v) except for distributions in connection with regu-
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lar quarterly distributions on Units, the Operating Partnership has not paid any
distributions of any kind on its Units;
(j) Neither the Operating Partnership, the Company nor any of the
Subsidiaries is, or as of the Closing Date will be, required to be registered
under the Investment Company Act of 1940, as amended (the "1940 Act");
(k) To the knowledge of the Company or the Operating Partnership, except as
set forth in the Registration Statement and the Prospectus, there are no
actions, suits, proceedings, investigations or inquiries, pending or, after due
inquiry, threatened against or affecting the Operating Partnership, the Company
or any of the Subsidiaries or any of their respective officers or directors in
their capacity as such or of which any of their respective properties or assets
or any Property is the subject or bound, before or by any Federal or state
court, commission, regulatory body, administrative agency or other governmental
body, domestic or foreign, wherein an unfavorable ruling, decision or finding
would reasonably be expected to have a Material Adverse Effect;
(l) The Operating Partnership, the Company and each of the Subsidiaries (i)
has, and at the Closing Date will have, (A) all governmental licenses, permits,
consents, orders, approvals and other authorizations necessary to carry on its
business as contemplated in the Prospectus and are in material compliance with
such, and (B) complied in all material respects with all laws, regulations and
orders applicable to it or its business and (ii) are not, and at the Closing
Date will not be, in breach of or default in the performance or observance of
any obligation, agreement, covenant or condition contained in any indenture,
mortgage, deed of trust, voting trust agreement, loan agreement, bond,
debenture, note agreement, lease, contract, joint venture or partnership
agreement or other agreement or instrument (collectively, a "Contract or Other
Agreement") or under any applicable law, rule, order, administrative regulation
or administrative or court decree to which it is a party or by which any of its
other assets or properties or by which the Properties are bound or affected,
except where such default, breach or failure will not, either singly or in the
aggregate, have a Material Adverse Effect. To the knowledge of the Operating
Partnership, the Company and each of the Subsidiaries, after due inquiry, no
other party under any Material contract or other agreement to which it is a
party is in default thereunder, except where such default will not have a
Material Adverse Effect. Neither the Operating Partnership, the Company nor any
of the Subsidiaries is, nor at the Closing Date will any of them be, in
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violation of any provision of its articles of incorporation, by-laws,
certificate of limited partnership, partnership agreement or other
organizational document, as the case may be;
(m) No Material consent, approval, authorization or order of, or any filing
or declaration with, any court or governmental agency or body or any other
entity is required in connection with the offering, issuance or sale of the
Securities hereunder except such as have been obtained under the Securities Act,
the Exchange Act and the TIA and such as may be required under state securities,
Blue Sky or real estate syndication laws or the by-laws, the corporate financing
rule or the conflict of interests rule of the National Association of Securities
Dealers, Inc. (the "NASD") in connection with the purchase and distribution by
the Underwriters of the Securities or such as have been received prior to the
date of this Agreement, and except for the filing of this Agreement, the
Indenture and the form of Securities with the Commission as exhibits to a Form
8-K, which the Operating Partnership and the Company agree to make in a timely
manner;
(n) The Company and the Operating Partnership have full corporate or
partnership power, as the case may be, to enter into this Agreement. This
Agreement has been duly and validly authorized, executed and delivered by the
Company and the Operating Partnership, constitutes a valid and binding agreement
of the Company and the Operating Partnership, and assuming due authorization,
execution and delivery by the Underwriters, is enforceable against the Operating
Partnership in accordance with the terms hereof and thereof subject to (i) the
effect of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws now or hereafter in effect relating to or
affecting the rights and remedies of creditors and (ii) the effect of general
principles of equity, whether enforcement is considered in a proceeding in
equity or at law, and the discretion of the court before which any proceeding
therefor may be brought. The execution, delivery and performance of this
Agreement and the Indenture and the consummation of the transactions
contemplated hereby, and compliance by each of the Company, the Operating
Partnership and the Subsidiaries with its obligations hereunder, will not result
in the creation or imposition of any lien, charge or encumbrance upon any of the
assets or properties of the Operating Partnership, the Company or any of the
Subsidiaries pursuant to the terms or provisions of, or result in a breach or
violation of any of the terms or provisions of, or constitute a default under,
or give any other party a right to terminate any of its obligations under, or
result in the acceleration of any obligation under, the certificate of
incorpora-
<PAGE>
-13-
tion, by-laws, certificate of limited partnership, partnership agreement or
other organizational documents of the Operating Partnership, the Company or any
of the Subsidiaries, any Contract or Other Agreement to which the Operating
Partnership, the Company or any of the Subsidiaries is a party or by which the
Operating Partnership, the Company or any of the Subsidiaries or any of their
assets or properties are bound or affected, or violate or conflict with any
judgment, ruling, decree, order, statute, rule or regulation of any court or
other governmental agency (foreign or domestic) or body applicable to the
business or properties of the Operating Partnership, the Company or any of the
Subsidiaries or to the Properties, in each case except for liens, charges,
encumbrances, breaches, violations, defaults, rights to terminate or accelerate
obligations, or conflicts, the imposition or occurrence of which would not have
a Material Adverse Effect;
(o) As of the Closing Date, the Operating Partnership, the Company and each
of the Subsidiaries will have good and marketable title to all properties and
assets described in the Prospectus as owned by it, free and clear of all liens,
encumbrances, claims, security interests and defects, except such as are
described in the Registration Statement or the Prospectus, or such as secure the
Company's loan facilities of the Operating Partnership, the Company and the
Subsidiaries, or would not result in a Material Adverse Effect;
(p) To the knowledge of the Company and the Operating Partnership: (i) no
lessee of any portion of the Properties is in default under any of the leases
governing such Properties and there is no event which, but for the passage of
time or the giving of notice, or both, would constitute a default under any of
such leases, except in each case such defaults that would not have a Material
Adverse Effect; (ii) the current use and occupancy of each of the Properties
complies in all material respects with all applicable codes and zoning laws and
regulations, except for such failures to comply which would not individually or
in the aggregate have a Material Adverse Effect; and (iii) there is no pending
or threatened condemnation, zoning change, environmental or other proceeding or
action that will in any material respect affect the size of, use of,
improvements on, construction on, or access to the Properties except such
proceedings or actions that would not have a Material Adverse Effect;
(q) The Operating Partnership, the Company and the Partnership Subsidiaries
have property, title, casualty and liability insurance in favor of the Operating
Partnership, the
<PAGE>
-14-
Company or the Partnership Subsidiaries with respect to each of the Properties,
in an amount and on such terms as is reasonable and customary for businesses of
the type conducted by the Operating Partnership, the Company and the Partnership
Subsidiaries except in such instances where the tenant is carrying such
insurance or the tenant is self-insuring such risks;
(r) Except as disclosed in the Prospectus, and, except for activities,
conditions, circumstances or matters that would not have a Material Adverse
Effect; (i) to the knowledge of the Operating Partnership, the Company and the
Subsidiaries, after due inquiry, the operations of the Operating Partnership,
the Company and the Subsidiaries are in compliance with all Environmental Laws
(as defined below) and all requirements of applicable permits, licenses,
approvals and other authorizations issued pursuant to Environmental Laws; (ii)
to the knowledge of the Operating Partnership, the Company and the Subsidiaries,
after due inquiry, none of the Operating Partnership, the Company or the
Subsidiaries has caused or suffered to occur any Release (as defined below) of
any Hazardous Substance (as defined below) into the Environment (as defined
below) on, in, under or from any Property, and no condition exists on, in, under
or adjacent to any Property that could reasonably be expected to result in the
incurrence of liabilities under, or any violations of, any Environmental Law or
give rise to the imposition of any Lien (as defined below), under any
Environmental Law; (iii) none of the Operating Partnership, the Company or the
Subsidiaries has received any written notice of a claim under or pursuant to any
Environmental Law or under common law pertaining to Hazardous Substances on, in,
under or originating from any Property; (iv) none of the Operating Partnership,
the Company or the Subsidiaries has actual knowledge of, or received any written
notice from any Governmental Authority (as defined below) claiming, any
violation of any Environmental Law or a determination to undertake and/or
request the investigation, remediation, clean-up or removal of any Hazardous
Substance released into the Environment on, in, under or from any Property; and
(v) no Property is included or, to the knowledge of the Operating Partnership,
the Company or the Subsidiaries, after due inquiry, proposed for inclusion on
the National Priorities List issued pursuant to CERCLA (as defined below) by the
United States Environmental Protection Agency (the "EPA"), or included on the
Comprehensive Environmental Response, Compensation, and Liability Information
System database maintained by the EPA, and none of the Operating Partnership,
the Company or the Subsidiaries has actual knowledge that any Property has
otherwise been identified in a published writing by the EPA as a potential
CERCLA removal, remedial or response site or, to the knowledge of the Company
<PAGE>
-15-
and its Subsidiaries, is included on any similar list of potentially
contaminated sites pursuant to any other Environmental Law;
As used herein, "Hazardous Substance" shall include any hazardous
substance, hazardous waste, toxic substance, pollutant or hazardous material,
including, without limitation, oil, petroleum or any petroleum-derived substance
or waste, asbestos or asbestos-containing materials, PCB's, pesticides,
explosives, radioactive materials, dioxins, urea formaldehyde insulation or any
constituent of any such substance, pollutant or waste which is subject to
regulation under any Environmental Law (including, without limitation, materials
listed in the United States Department of Transportation Optional Hazardous
Material Table, 49 C.F.R. ss. 172.101, or in the EPA's List of Hazardous
Substances and Reportable Quantities, 40 C.F.R. Part 302); "Environment" shall
mean any surface water, drinking water, ground water, land surface, subsurface
strata, river sediment, buildings, structures, and ambient, workplace and indoor
and outdoor air; "Environmental Law" shall mean the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. ss. 9601
et seq.) ("CERCLA"), the Resource Conservation and Recovery Act of 1976, as
amended (42 U.S.C. ss. 6901, et seq.), the Clean Air Act, as amended (42 U.S.C.
ss. 7401, et seq.), the Clean Water Act, as amended (33 U.S.C. ss. 1251, et
seq.), the Toxic Substances Control Act, as amended (15 U.S.C. ss. 2601, et
seq.), the Occupational Safety and Health Act of 1970, as amended (29 U.S.C. ss.
651, et seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C.
ss. 1801, et seq.), and all other federal, state and local laws, ordinances,
regulations, rules and orders relating to the protection of the environment or
of human health from environmental effects; "Governmental Authority" shall mean
any federal, state or local governmental office, agency or authority having the
duty or authority to promulgate, implement or enforce any Environmental Law;
"Lien" shall mean, with respect to any Property, any mortgage, deed of trust,
pledge, security interest, lien, encumbrance, penalty, fine, charge, assessment,
judgment or other liability in, on or affecting such Property; and "Release"
shall mean any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, dumping, emanating or disposing of
any Hazardous Substance into the Environment, including, without limitation, the
abandonment or discard of barrels, containers, tanks (including, without
limitation, underground storage tanks) or other receptacles containing or
previously containing and containing a residue of any Hazardous Substance.
<PAGE>
-16-
None of the environmental consultants which prepared environmental and
asbestos inspection reports with respect to any of the Properties was employed
for such purpose on a contingent basis or has any substantial interest in the
Operating Partnership, the Company or any of the Subsidiaries, and none of them
nor any of their directors, officers or employees is connected with the
Operating Partnership, the Company or any of the Subsidiaries as a promoter,
selling agent, voting trustee, director, officer or employee.
(s) The Company, the Operating Partnership and the Subsidiaries are
organized and operate in a manner so as to qualify as a real estate investment
trust ("REIT") under Sections 856 through 860 of the Internal Revenue Code of
1986, as amended (the "Code"), and have elected to be taxed as a REIT under the
Code commencing with the taxable year ending December 31, 1994. The Company, the
Operating Partnership and the Subsidiaries intend to continue to qualify as a
REIT for the foreseeable future;
(t) There is no material document or contract of a character required to be
described or referred to in the Registration Statement or the Prospectus or to
be filed as an exhibit to the Registration Statement which is not described or
filed as required therein, except for the filing of this Agreement and the
Indenture with the Commission as exhibits to a Form 8-K, which the Company
agrees to make in a timely manner, and the descriptions thereof or references
thereto are accurate in all material respects;
(u) None of the Operating Partnership, the Company or any of the
Subsidiaries is involved in any labor dispute nor, to the knowledge of the
Operating Partnership, the Company or the Subsidiaries, after due inquiry, is
any such dispute threatened which would be Material;
(v) The Operating Partnership, the Company and the Subsidiaries own, or are
licensed or otherwise have the full exclusive right to use, all material
trademarks and trade names which are used in or necessary for the conduct of
their respective businesses as described in the Prospectus. To the knowledge of
the Company or the Operating Partnership, no claims have been asserted by any
person to the use of any such trademarks or trade names or challenging or
questioning the validity or effectiveness of any such trademark or trade name.
The use, in connection with the business and operations of the Operating
Partnership, the Company and the Subsidiaries, of such trademarks
<PAGE>
-17-
and trade names does not, to the Company's or the Operating Partnership's
knowledge, infringe on the rights of any person;
(w) Each of the Operating Partnership, the Company and the Subsidiaries has
filed all federal, state, local and foreign income tax returns which have been
required to be filed (except in any case in which the failure to so file would
not result in a Material Adverse Effect) and has paid all taxes required to be
paid and any other assessment, fine or penalty levied against it, to the extent
that any of the foregoing would otherwise be delinquent, except, in all cases,
for any such tax, assessment, fine or penalty that is being contested in good
faith and except in any case in which the failure to so pay would not result in
a Material Adverse Effect;
(x) The Operating Partnership and each of the Partnership Subsidiaries is
properly treated as a partnership for federal income tax purposes and not as a
"publicly traded partnership";
(y) No relationship, direct or indirect, exists between or among the
Company, the Operating Partnership or the Subsidiaries on the one hand, and the
directors, officers, stockholders, customers or suppliers of the Company, the
Operating Partnership or the Subsidiaries on the other hand, which is required
by the Securities Act to be described in the Registration Statement and the
Prospectus which is not so described;
(z) The Company and the Operating Partnership have not taken and will not
take, directly or indirectly, any action designed to, or that might be
reasonably expected to, cause or result in stabilization or manipulation of the
price of the Securities, and the Company and the Operating Partnership have not
distributed and have agreed not to distribute any prospectus or other offering
material in connection with the offering and sale of the Securities other than
the Prospectus, any preliminary prospectus filed with the Commission or other
material permitted by the Securities Act (which were disclosed to you and your
counsel);
(aa) The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management's general or specific authorization; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain accountability for assets; (iii) access to assets, financial and
corporate books and records is permitted
<PAGE>
-18-
only in accordance with management's general or specific authorization; and (iv)
the recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences;
(bb) Any certificate or other document signed by any officer or authorized
representative of the Operating Partnership, the Company or any Subsidiary, and
delivered to the Underwriters or to counsel for the Underwriters in connection
with the sale of the Securities shall be deemed a representation and warranty by
such entity or person, as the case may be, to each Underwriter as to the matters
covered thereby;
(cc) The Securities will have an investment grade rating from one or more
nationally recognized statistical rating organization at each applicable
Representation Date as specified in Schedule I hereto; and
(dd) The Registration Statement has been declared effective by the
Commission under the Securities Act; no stop order suspending the effectiveness
of the Registration Statement or any part thereof has been issued and no
proceeding for that purpose has been instituted, or to the knowledge of the
Company or the Operating Partnership, threatened by the Commission or by the
state securities authority of any jurisdiction. No order preventing or
suspending the use of the Prospectus or any preliminary prospectus has been
issued and no proceeding for that purpose has been instituted or, to the
knowledge of the Company, threatened by the Commission or by the state
securities authority of any jurisdiction.
5. Each of the Company and the Operating Partnership covenants and agrees
with each Underwriter as follows:
(a) In respect of the offering of the Securities, the Operating Partnership
will (i) prepare a Prospectus Supplement setting forth the aggregate principal
amount of Securities covered thereby and their terms not otherwise specified in
the Basic Prospectus pursuant to which the Securities are being issued, the
names of the Underwriters participating in the offering and the aggregate
principal amount of Securities which each severally has agreed to purchase, the
names of the Underwriters acting as co-managers in connection with the offering,
the price at which the Securities are to be purchased by the Underwriters from
the Operating Partnership, the initial public offering price, the selling
concession and reallowance, if any, and such other information as the
Underwriters and the Operating Partnership deem appropriate in connection with
the offer-
<PAGE>
-19-
ing of the Securities, (ii) file the Prospectus in a form approved by you
pursuant to Rule 424 under the Securities Act within the applicable time period
prescribed by such rule for such filing and (iii) furnish copies of the
Prospectus to the Underwriters and to such dealers as you shall specify in New
York City prior to 10:00 A.M., New York City time, as soon as practicable after
the date of this Agreement in such quantities as you may reasonably request;
(b) The Operating Partnership will comply with the Securities Act and the
Exchange Act so as to permit the completion of the distribution of the
Securities as contemplated in this Agreement and in the Registration Statement
and the Prospectus. At any time when the Prospectus is required to be delivered
under the Securities Act or the Exchange Act in connection with sales of
Securities, the Operating Partnership will advise you promptly and, if requested
by you, confirm such advice in writing, of (i) the effectiveness of any
amendment to the Registration Statement (ii) the transmittal to the Commission
for filing of any Prospectus or other supplement or amendment to the Prospectus
to be filed pursuant to the Securities Act, (iii) the receipt of any comments
from the Commission relating to the Registration Statement, any preliminary
prospectus, the Prospectus or any of the transactions contemplated by this
Agreement, (iv) any request by the Commission for post-effective amendments to
the Registration Statement or amendments or supplements to the Prospectus or for
additional information, (v) the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or of the suspension
of qualification of the Securities for offering or sale in any jurisdiction, or
the initiation of any proceeding for such purposes, and (vi) the happening of
any event which makes any statement of a material fact made in the Registration
Statement or the Prospectus untrue or which requires the making of any additions
to or changes in the Registration Statement or the Prospectus in order to make
the statements therein not misleading. The Operating Partnership will make every
reasonable effort to prevent the issuance of any stop order and if at any time
the Commission shall issue any stop order suspending the effectiveness of the
Registration Statement, the Operating Partnership will make every reasonable
effort to obtain the withdrawal or lifting of such order at the earliest
possible time;
(c) The Operating Partnership will furnish to you without charge, one
signed copy of the Registration Statement as first filed with the Commission and
of each amendment to it, including all exhibits and documents incorporated by
reference, and to furnish to you such number of conformed copies of the
<PAGE>
-20-
Registration Statement as so filed and of each amendment to it and document
incorporated by reference, as you may reasonably request. If applicable, the
copies of the Registration Statement and each amendment thereto furnished to the
Underwriters will be identical to the electronically transmitted copies thereof
filed with the Commission pursuant to EDGAR, except to the extent permitted by
Regulation S-T;
(d) At any time when the Prospectus is required to be delivered under the
Securities Act or the Exchange Act in connection with sales of Securities, not
to file any amendment to the Registration Statement or any Rule 462(b)
Registration Statement or to make any amendment or supplement to the Prospectus
or any Term Sheet, if applicable, of which you shall not previously have been
advised or to which you or counsel for the Underwriters shall reasonably object;
and to prepare and file with the Commission, promptly upon your reasonable
request, any amendment to the Registration Statement, Rule 462(b) Registration
Statement, Term Sheet, or amendment or supplement to the Prospectus which, in
the opinion of counsel for the Underwriters, may be necessary in connection with
the distribution of the Securities by you, and to use its best efforts to cause
the same to become promptly effective. If applicable, the Prospectus and any
amendments or supplements thereto furnished to the Underwriters will be
identical to the electronically transmitted copies thereof filed with the
Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T;
(e) If, at any time when the Prospectus is required to be delivered under
the Securities Act or the Exchange Act in connection with sales of Securities,
any event shall occur as a result of which, in the opinion of counsel for the
Underwriters, it becomes necessary to amend or supplement the Prospectus in
order to make the statements therein, in the light of the circumstances existing
when the Prospectus is delivered to a purchaser, not misleading, or if it is
necessary to amend or supplement the Prospectus to comply with any law, the
Operating Partnership will forthwith prepare and file with the Commission an
appropriate amendment or supplement to the Prospectus (in form and substance
reasonably satisfactory to counsel for the Underwriters) so that the statements
in the Prospectus, as so amended or supplemented, will not contain an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances existing when
it is so delivered, not misleading, or so that the Prospectus will comply with
any law, and to furnish to each Underwriter and to such dealers as you shall
specify,
<PAGE>
-21-
such number of copies thereof as such Underwriter or dealers may reasonably
request;
(f) The Operating Partnership will use its best efforts, in cooperation
with the Underwriters, to qualify, register or perfect exemptions for the
Securities for offer and sale by the several Underwriters to qualified
institutions under the applicable state securities, Blue Sky and real estate
syndication laws of such jurisdictions as you may reasonably request; provided,
however, the Operating Partnership will not be required to qualify as a foreign
limited partnership, file a general consent to service of process in any such
jurisdiction, subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject, or provide any undertaking
or make any change in its partnership agreement that the general partner of the
Operating Partnership reasonably determines to be contrary to the best interests
of the Operating Partnership and its unitholders. In each jurisdiction in which
the Securities have been so qualified or registered, the Operating Partnership
will use all reasonable efforts to file such statements and reports as may be
required by the laws of such jurisdiction, to continue such qualification or
registration in effect for so long a period as the Underwriters may reasonably
request for the distribution of the Securities and to file such consents to
service of process or other documents as may be necessary in order to effect
such qualification or registration; provided, however, the Operating Partnership
will not be required to qualify as a foreign limited partnership, file a general
consent to service of process in any such jurisdiction, subject itself to
taxation in respect of doing business in any jurisdiction in which it is not
otherwise so subject, or provide any undertaking or make any change in its
partnership agreement that the general partner of the Operating Partnership
reasonably determines to be contrary to the best interests of the Operating
Partnership and its unitholders;
(g) To make generally available to the holders of the Securities as soon as
reasonably practicable but not later than sixty days after the close of the
period covered thereby (ninety days in the event the close of such period is the
close of the Operating Partnership's fiscal year), an earnings statement (in
form complying with the provisions of Rule 158 of the Securities Act) covering a
period of at least twelve months after the effective date of the Registration
Statement (but in no event commencing later than ninety days after such date)
which shall satisfy the provisions of Section 11(a) of the Securities Act, and,
if required by Rule 158 of the Securities Act, to file such statement as an
exhibit to the next periodic report re-
<PAGE>
-22-
quired to be filed by the Operating Partnership under the Exchange Act covering
the period when such earnings statement is released;
(h) During the period of five years after the date of this Agreement, the
Company and the Operating Partnership will furnish to you as soon as available
(x) a copy of each regular and periodic report, financial statement or other
publicly available information of the Operating Partnership, the Company and any
Subsidiary mailed to the holders of the Securities or filed with the Commission
or any securities exchange and (y) such other publicly available information
concerning the Operating Partnership, the Company and any Subsidiary as you may
reasonably request;
(i) During the period when the Prospectus is required to be delivered under
the Securities Act or the Exchange Act in connection with sales of the
Securities, to file all documents required to be filed by it with the Commission
pursuant to Section 13, 14 or 15 of the Exchange Act within the time periods
required by the Exchange Act;
(j) The Operating Partnership will pay all costs, expenses, fees and taxes
incident to (i) the preparation, printing, filing and distribution under the
Securities Act of the Registration Statement and any amendment thereto
(including financial statements and exhibits), each preliminary prospectus, the
Prospectus and all amendments and supplements to any of them prior to or during
the period specified in Section 5(e), (ii) the printing and delivery of this
Underwriting Agreement, the Indenture, any Supplemental Indentures and any Blue
Sky Memorandum, (iii) the qualification or registration of the Securities for
offer and sale under certain limited securities, Blue Sky or real estate
syndication laws of certain states in accordance with Section 5(f) hereof, (iv)
the fee of and the filings and clearance, if any, with the NASD in connection
with the Offering, (v) the fees charged by nationally recognized statistical
rating organizations for the rating of the Securities, (vi) furnishing such
copies of the Registration Statement, the preliminary prospectus, the Prospectus
and all amendments and supplements thereto as may be requested for use in
connection with the offering or sale of the Securities by the Underwriters or by
dealers to whom Securities may be sold, (vii) the preparation, issuance and
delivery of certificates for the Securities to the Underwriters, (viii) the
costs and charges of any transfer agent or registrar, (ix) the costs and
expenses of the Trustee under the Indenture, (x) any expenses incurred by the
Operating Partnership in connection with a "road show" presentation to poten-
<PAGE>
-23-
tial investors, (xi) any transfer taxes imposed on the sale by the Operating
Partnership of the Securities to the Underwriters and (xii) the fees and
disbursements of the Operating Partnership's counsel and accountants;
(k) The Operating Partnership will use its best efforts to do and perform
all things required to be done and performed under this Agreement by the
Operating Partnership prior to the Closing Date and to satisfy all conditions
precedent to the delivery of the Securities;
(l) The Operating Partnership will use the net proceeds received by it from
the sale of the Securities in the manner specified in the Prospectus Supplement
under "Use of Proceeds";
(m) The Operating Partnership will prepare and file or transmit for filing
with the Commission in accordance with Rule 424(b) of the Securities Act copies
of the Prospectus;
(n) The Operating Partnership will use its best efforts to continue to
qualify as a REIT under Sections 856 through 860 of the Code unless the
Operating Partnership's general partner determines that it is no longer in the
best interests of the Operating Partnership to be so qualified;
(o) To take all reasonable action necessary to enable Standard & Poor's
Corporation ("S&P"), Moody's Investors Service, Inc ("Moody's"), Fitch Investors
Services, L.P. or any other nationally recognized rating organization to provide
their respective credit ratings of the Securities, as specified in Schedule I
hereto; and
(p) The Operating Partnership and the Company will execute a supplemental
indenture (a "Supplemental Indenture") designating each series of debt
securities to be offered and its related terms and provisions in accordance with
the provisions of the Indenture.
6. The several obligations of the Underwriters hereunder shall be subject
to the performance by the Company and the Operating Partnership of their
respective obligations hereunder and to the following conditions:
(a) the Registration Statement, including any Rule 462(b) Registration
Statement, has become effective under the Act; the Prospectus shall have been
filed with the Commission pursuant to Rule 424(b) within the applicable time
period pre-
<PAGE>
-24-
scribed for such filing by such Rule; no stop order suspending the effectiveness
of the Registration Statement or the Prospectus shall be in effect, and no
proceedings for such purpose shall have been commenced or shall be pending
before or threatened by the Commission to the knowledge, after due inquiry, of
the Company or the Operating Partnership; no stop order suspending the
effectiveness of the Registration Statement or the Prospectus shall be in effect
and no proceedings for such purpose shall have been commenced or shall be
pending before or threatened by the state securities authority of any
jurisdiction, to the knowledge of the Company or the Operating Partnership; and
all requests for additional information on the part of the Commission shall have
been complied with to your satisfaction;
(b) all the representations and warranties of the Company and the Operating
Partnership contained in this Agreement shall be true and correct, in all
material respects, on the Closing Date, with the same force and effect as if
made on and as of the Closing Date and the Company and the Operating Partnership
shall have complied with all agreements and all conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date;
(c) subsequent to the execution and delivery of this Agreement and prior to
the Closing Date, there shall not have occurred any downgrading, nor shall any
notice have been given of (i) any intended or potential downgrading or (ii) any
review or possible change that does not indicate an improvement, in the rating
accorded any securities of or guaranteed by the Company or the Operating
Partnership by any "nationally recognized statistical rating organization," as
such term is defined for purposes of Rule 436(g)(2) under the Securities Act;
(d) since the respective dates as of which information is given in the
Registration Statement and the Prospectus there shall not have been any material
change in the capital stock, partners' equity or long-term debt of the Company,
the Operating Partnership or any of the Subsidiaries on a consolidated basis,
except as described or contemplated in the Prospectus, or any material adverse
change, or any development involving a prospective material adverse change, in
or affecting the general affairs, business, prospects, management, properties,
financial position, stockholders' equity, partners' equity or results of
operations of the Company, the Operating Partnership and the Subsidiaries, taken
as a whole, otherwise than as set forth or contemplated in the Prospectus, the
effect of which in your judgment makes it impracticable or inadvisable to
proceed
<PAGE>
-25-
with the public offering or the delivery of the Securities on the terms and in
the manner contemplated in the Prospectus and/or the Indenture; and other than
as set forth in the Prospectus, no proceedings shall be pending or, to the
knowledge of the Company or the Operating Partnership, after due inquiry,
threatened against the Operating Partnership or the Company or any Property
before or by any federal, state or other commission, board or administrative
agency, where an unfavorable decision, ruling or finding could reasonably be
expected to result in a Material Adverse Effect;
(e) you shall have received on and as of the Closing Date a certificate
signed by the President or Chief Executive Officer of the Company and the Chief
Financial or Accounting Officer of the Company, in their capacities as officers
of the Company, on behalf of the Company for itself and as general partner of
the Operating Partnership, satisfactory to you to the effect set forth in
subsections (a) through (d) of this Section and to the further effect that there
has not occurred any material adverse change, or any development involving a
prospective material adverse change, in or affecting the general affairs,
business, prospects, management, properties, financial position, stockholders'
equity, partners' equity or results of operations of the Operating Partnership,
the Company and the Subsidiaries taken as a whole from that set forth or
contemplated in the Registration Statement;
(f) you shall have received on the Closing Date, an opinion or opinions
(satisfactory to you and counsel for the Underwriters), dated the Closing Date,
of Cahill Gordon & Reindel, counsel for the Company and the Operating
Partnership, to the effect that:
(i) The Company is duly qualified or registered as a foreign
corporation to transact business and is in good standing in each
jurisdiction identified with an asterisk in Schedule III hereto. Each of
FIFC and FISC is duly qualified or registered as a foreign corporation to
transact business and is in good standing in each jurisdiction identified
with an asterisk in Schedule III hereto.
(ii) The Operating Partnership and each of the Financing Partnership
and Securities, L.P. has been duly formed and is validly existing as a
limited partnership in good standing under the laws of its state of
organization. The Operating Partnership and each of the Financing
Partnership and Securities,
<PAGE>
-26-
L.P. has all requisite partnership power and authority to own, lease and
operate its properties and other assets, to conduct the business in which
it is engaged and proposes to engage, in each case, as described in the
Prospectus, and the Operating Partnership has the partnership power to
enter into and perform its obligations under this Agreement and the
Indenture. The Operating Partnership and each of the Financing Partnership
and Securities, L.P. is duly qualified or registered as a foreign
partnership and is in good standing in each jurisdiction identified with an
asterisk in Schedule III hereto.
(iii) To the knowledge of such counsel, none of the Company, the
Operating Partnership, the Financing Partnership, Securities, L.P., FIFC or
FISC is in violation of or default under its charter, by-laws, certificate
of limited partnership or partnership agreement, as the case may be, and
none of such entities is in default in the performance or observance of any
obligation, agreement, covenant or condition contained in any document (as
in effect on the date of such opinion) listed as an exhibit to the
Registration Statement, each of the Company's and the Operating
Partnership's Annual Report on Form 10-K, as amended, if applicable, and
each of the Company's and the Operating Partnership's most recent Quarterly
Report on Form 10-Q, as amended, if applicable, to which such entity is a
party or by which such entity may be bound, or to which any of the property
or assets of such entity or any Property is subject to or bound by (it
being understood that (i) such counsel need express no opinion with respect
to matters relating to any contract, indenture, mortgage, loan agreement,
note lease, joint venture or partnership agreement or other instrument or
agreement relating to the acquisition, transfer, operation, maintenance,
management or financing of any property or assets of such entity or any
other Property and (ii) such counsel may assume compliance with the
financial covenants contained in any such document), except in each case
for violations or defaults which in the aggregate are not reasonably
expected to have a Material Adverse Effect.
(iv) This Agreement was duly and validly authorized, executed and
delivered by each of the Company and the Operating Partnership.
<PAGE>
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(v) The issuance of the Securities has been duly authorized by the
Company on behalf of the Operating Partnership, and when executed and
authenticated by the Trustee in accordance with the terms of the Indenture,
and delivered to, and paid for by, the Underwriters in accordance with the
terms of this Agreement, such Securities will constitute valid and legally
binding obligations of the Operating Partnership entitled to the benefits
provided for in the Indenture, enforceable against the Operating
Partnership in accordance with their terms subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar
laws of general applicability relating to or affecting creditors' rights
and to general principles of equity (regardless of whether such
enforceability is considered in a proceeding at equity or law).
(vi) The Indenture has been duly and validly authorized, executed and
delivered by the Company, as general partner of the Operating Partnership,
and the Operating Partnership and assuming due authorization, execution and
delivery thereof by the Trustee, will constitute a valid and legally
binding agreement of the Company and the Operating Partnership, enforceable
against the Operating Partnership in accordance with its terms subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors'
rights and to general principles of equity (regardless of whether such
enforceability is considered in a proceeding at equity or law); and the
Indenture has been duly qualified under the TIA.
(vii) The Indenture and the Securities conform in all material
respects to the descriptions thereof in the Registration Statement and the
Prospectus under the captions "Description of Notes" and "Description of
Debt Securities."
(viii) The Registration Statement has been declared effective under
the Securities Act and the Indenture has been qualified under the TIA, the
Prospectus was filed with the Commission pursuant to Rule 424 within the
applicable time period prescribed by Rule 424 and, to the knowledge of such
counsel, no stop order suspending the effectiveness of the Registration
Statement or the Prospectus has been issued
<PAGE>
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and no proceeding for that purpose is pending or threatened by the
Commission.
(ix) The execution and delivery of this Agreement and the Indenture,
the issuance and sale of the Securities and the performance by the Company
and the Operating Partnership of their respective obligations under the
Securities, this Agreement and the Indenture and the consummation of the
transactions herein and therein contemplated will not require, to such
counsel's knowledge, any consent, approval, authorization or other order of
any court, regulatory body, administrative agency or other governmental
body (except such as may be required under the Securities Act, the TIA and
the state securities, Blue Sky or real estate syndication laws in
connection with the purchase and distribution of the Securities by the
Underwriters) and did not and do not conflict with or constitute a breach
or violation of or default under: (1) any document (as in effect on the
date of such opinion) listed as an exhibit to the Registration Statement,
each of the Company's and the Operating Partnership's Annual Report on Form
10-K, as amended, if applicable, and each of the Company's and the
Operating Partnership's most recent Quarterly Report on Form 10-Q, as
amended, if applicable, to which any such entity is a party or by which it
or any of them or any of their respective properties or other assets may be
bound or subject and of which such counsel is aware (it being understood
that (i) such counsel need express no opinion with respect to matters
relating to any contract, indenture, mortgage, loan agreement, note lease,
joint venture or partnership agreement or other instrument or agreement
relating to the acquisition, transfer, operation, maintenance, management
or financing of any property or assets of such entity or any other Property
and (ii) such counsel may assume compliance with the financial covenants
contained in any such document); (2) the certificate of limited partnership
or partnership agreement, as the case may be, of the Operating Partnership,
the Financing Partnership, and Securities, L.P. or the articles of
incorporation or bylaws, as the case may be, of the Company, FIFC or FISC;
(3) any applicable law, rule or administrative regulation, except in each
case for conflicts, breaches, violations or defaults that in the aggregate
would not have a Material Adverse Effect.
<PAGE>
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(x) To the knowledge of such counsel, no Material authorization,
approval, consent or order of any court or governmental authority or agency
or any other entity is required in connection with the offering, issuance
or sale of the Securities hereunder, except such as may be required under
the Securities Act, the TIA or the by-laws, corporate financing rule and
conflict of interest rule of the NASD, or state securities, blue sky or
real estate syndication laws, or such as have been received prior to the
date of such opinion.
(xi) The Registration Statement, at the time it became effective and
the Prospectus, as of the date of the Prospectus Supplement (in each case,
other than the Form T-1 and the financial statements and supporting
schedule and other financial and statistical data included or incorporated
by reference therein, as to which no opinion need be rendered), complied as
to form in all material respects with the requirements of the Securities
Act and the Exchange Act.
(xii) Each of the Underwriters is receiving good, valid and marketable
title to the Securities, free and clear of all security interests,
mortgages, pledges, liens, encumbrances, claims and equities if the
Underwriters acquire such Securities in good faith and without notice of
any such security interests, mortgages, pledges, liens, encumbrances,
claims or equities.
(xiii) The information in the Prospectus under "Description of the
Notes," "Certain United States Federal Income Tax Considerations," "Risk
Factors," "Description of Debt Securities," "Restrictions on Transfers of
Capital Stock" and "Federal Income Tax Considerations," to the extent that
it constitutes statements of law, descriptions of statutes, rules or
regulations, or summaries of documents or legal conclusions, has been
reviewed by us and is correct in all material respects and presents fairly
the information required to be disclosed therein.
(xiv) To such counsel's knowledge, there is no document or contract of
a character required to be described or referred to in the Registration
Statement and Prospectus or to be filed as exhibits thereto by the
Securities Act other than those described or referred to therein or filed
as exhibits
<PAGE>
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thereto, and the descriptions thereof or references thereto are accurate in
all material respects.
(xv) The partnership agreement of each of the Operating Partnership,
Securities, L.P. and the Financing Partnership has been duly authorized,
validly executed and delivered by each of the Company and the Subsidiaries,
to the extent they are parties thereto, and is valid, legally binding and
enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar
laws of general applicability relating to or affecting creditors' rights
and of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
(xvi) The Company and the Operating Partnership satisfy all conditions
and requirements for filing the Registration Statement on Form S-3 under
the Act.
(xvii) None of the Company, the Corporate Subsidiaries or the
Partnership Subsidiaries is required to be registered as an investment
company under the Investment Company Act of 1940, as amended.
In addition, Cahill Gordon & Reindel shall confirm that the opinion filed
as Exhibit 8 to the Registration Statement is true and correct as of the date
thereof and permit the Underwriters to rely on such opinion as if it were
addressed to the Underwriters.
In addition, Cahill Gordon & Reindel shall state that it has participated
in conferences with officers and other representatives of the Company, the
Operating Partnership and the Subsidiaries, representatives of the independent
public accountants for the Company and the Operating Partnership and the
Subsidiaries and representatives of the Underwriters at which the contents of
the Registration Statement and the Prospectus and related matters were
discussed. On the basis thereof, but without independent verification by such
counsel of, and without passing upon or assuming any responsibility for, the
accuracy, completeness or fairness of the statements contained in the
Registration Statement or the Prospectus or any amendments or supplements
thereto, no facts have come to the attention of such counsel that lead them to
believe that (i) the Registra-
<PAGE>
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tion Statement, including the documents incorporated therein by reference, at
the time such Registration Statement became effective, contained any untrue
statement of a material fact or omitted to state any material fact required to
be stated therein or necessary in order to make the statements therein not
misleading or (ii) the Prospectus, as of its date or at the Closing Date,
contained or contains any untrue statement of a material fact or omitted or
omits to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading (it being
understood that such counsel need express no opinion with respect to the
financial statements, schedules and other financial and statistical data
included in the Registration Statement or the Prospectus or the Form T-1).
In giving its opinion, such counsel may rely (i) as to all matters of fact,
upon certificates and written statements of officers, directors, partners and
employees of and accountants for each of the Company, the Operating Partnership,
the Corporate Subsidiaries and the Partnership Subsidiaries, (ii) as to matters
of Maryland law, on the opinion of McGuire, Woods, Battle & Boothe, L.L.P.,
Baltimore, Maryland, which opinion shall be in form and substance reasonably
satisfactory to counsel for the Underwriters, (iii) as to matters of Illinois
law, on the opinion of Barack Ferrazzano Kirschbaum, Perlman & Nagelberg,
Chicago, Illinois, which opinion shall be in form and substance reasonably
satisfactory to counsel for the Underwriters, and (iv) as to the good standing
and qualification of the Company, the Operating Partnership, the Corporate
Subsidiaries and the Partnership Subsidiaries to do business in any state or
jurisdiction, upon certificates of appropriate government officials or opinions
of counsel in such jurisdictions. Counsel need express no opinion (A) as to the
enforceability of forum selection clauses in the federal courts or (B) with
respect to the requirements of, or compliance with, any state securities or
"Blue Sky" or real estate syndication laws;
(g) You shall have received on the Closing Date, an opinion (satisfactory
to you and counsel for the Underwriters), dated the Closing Date, of McGuire,
Woods, Battle & Boothe, L.L.P., special Maryland counsel for the Company, to the
effect that:
(i) Each of the Company and the Corporate Subsidiaries has been duly
incorporated and is validly existing as a corporation in good standing
under the laws of its respective jurisdiction of incorporation.
<PAGE>
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(ii) Each of the Company and the Corporate Subsidiaries has corporate
power and authority to own, lease and operate its properties and other
assets and to conduct the business in which it is engaged or proposes to
engage, in each case, as described in the Prospectus, and the Company has
the corporate power and authority to enter into and perform its obligations
under this Agreement and the Indenture.
(iii) The issuance of Securities have been duly authorized by the
Company on behalf of the Operating Partnership.
(iv) Each of this Agreement and the Indenture was duly and validly
authorized by the Company, on behalf of itself and the Operating
Partnership.
(v) The execution and delivery of this Agreement and the Indenture,
the performance of the obligations and the consummation of the transaction
set forth herein and therein by the Company will not require, to the
knowledge of such counsel, any consent, approval, authorization or other
order of any Maryland court, regulatory body, administrative agency or
other governmental body (except as such may be required under the
Securities Act or other securities laws) and did not and do not conflict
with or constitute a breach or violation of or default under: (A) the
charter or by-laws, as the case may be, of the Company; and (B) any
applicable Maryland law, rule or administrative regulation or any order or
administrative or court decree of which such counsel is aware, except in
each case for conflicts, breaches, violations or defaults that in the
aggregate would not have a Material Adverse Effect.
(vi) To the knowledge of such counsel, no Material authorization,
approval, consent or order of any Maryland court, governmental authority,
agency or other entity is required in connection with the offering,
issuance or sale of the Securities hereunder, except such as may be
required under Maryland securities, blue sky or real estate syndication
laws.
(vii) The information in the Prospectus under "Description of Debt
Securities," "Certain Provisions of Maryland Law and The Company's Articles
of Incor-
<PAGE>
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poration and Bylaws" and "Restrictions on Transfers of Capital Stock" and
in Part II of the Registration Statement under Item 15, to the extent that
it constitutes statements of law, descriptions of statutes, rules or
regulations, summaries of documents or legal conclusions, has been reviewed
by such counsel and, as to Maryland law, is correct in all material
respects and presents fairly the information required to be disclosed
therein.
(viii) The Company and each of the Corporate Subsidiaries was
authorized to enter into the partnership agreement of each Partnership
Subsidiary for which the Company or such Corporate Subsidiary, as the case
may be, is the general partner.
(h) You shall have received on the Closing date, an opinion (satisfactory
to you and counsel for the Underwriters), dated the Closing Date, of Barack
Ferrazzano Kirschbaum Perlman & Nagelberg, special Illinois counsel for the
Company, to the effect that:
(i) To the knowledge of such counsel, none of the Company, FRA, the
Operating Partnership, FIMC, the Mortgage Partnership, FII and FIIC is in
violation of, or default in connection with the performance or observance
of any obligation, agreement, covenant or condition contained in any or all
of (A) the consummation of (1) a certain revolving credit facility made
available to the Operating Partnership by The First National Bank of
Chicago and Union Bank of Switzerland, New York Branch ("UBS"), on behalf
of themselves and as agents for various co-lenders; and (2) a certain
mortgage loan made available to the Mortgage Partnership by Nomura Asset
Capital Corporation; (B) the assumption by the Operating Partnership of a
certain mortgage loan from PFL Life Insurance Company made available to
Fourth Brookville Associates Limited Partnership; (C) the assumption by the
Operating Partnership of a certain loan from Monumental Life Insurance
Company made available to Lincoln Center Associates Limited Partnership;
(D) the assumption by the Operating Partnership of a certain loan from Sun
Life Assurance Company of Canada made available to Sealy James Park,
L.L.C.; (E) the assumption by the Operating Partnership of a certain
mortgage loan from American National Insurance Company made available to
American National Bank and
<PAGE>
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Trust Company of Chicago, as Trustee under Trust No. 113913-07; (F) the
assumption by the Operating Partnership of a certain mortgage loan from
State Street Bank and Trust Company, as Trustee for Holders of Commercial
Mortgage Pass-Through Certificates, acting by and through Lutheran
Brotherhood, its duly authorized Attorney-in-Fact, made available to
Walglen Investments Limited; (G) the origination of a certain mortgage loan
made available to the Operating Partnership and Indianapolis, L.P. by
Connecticut General Life Insurance Company; and (H) the acquisition of
property by the Operating Partnership subject to a certain mortgagee loan
from Smithkline Beecham Clinical Laboratories, Inc. made available to 290
Industrial Co., LLC (all such indebtedness referenced in (A) through (H),
collectively, the "Credit Documents") and (b) various pending agreements of
purchase and sale into which FR Acquisitions, Inc. has entered into for the
purchase of certain real properties (collectively, the "Pending
Contracts"), except in each case for defaults that, in the aggregate, are
not reasonably expected to have a Material Adverse Effect.
(ii) The execution and delivery of this Agreement and the Indenture
and the performance of the obligations set forth herein and therein by the
Company and the Operating Partnership did not and do not conflict with, or
constitute a breach or violation of, or default under: (A) any or all of
the Credit Documents and the Pending Contracts; (B) any applicable law,
rule or administrative regulation of the federal government (or agency
thereof) of the United States; or (C) any order or administrative or court
decree issued to or against, or concerning any or all of the Company, FRA,
the Operating Partnership, FIH, FII, the Mortgage Partnership, FIHC, FIMC
and FIIC, of which, in the cases of clauses (B) and (C) above, such counsel
is aware, except in each case for conflicts, breaches, violations or
defaults that, in the aggregate, would not have a Material Adverse Effect.
(iii) To the knowledge of such counsel, there are no legal or
governmental proceedings pending or threatened that do, or are likely to,
have a Material Adverse Effect.
<PAGE>
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(iv) The information in the 10-K under Item 2 "The
Properties--Mortgage Loans" (other than information relating to a certain
mortgage loan made available to First Industrial Financing Partnership,
L.P. by Nomura Asset Capital Corporation) to the extent that it constitutes
statements of law, descriptions of statutes, summaries of principal
financing terms of Credit Documents or legal conclusions, has been reviewed
by such counsel and is correct in all material respects and presents fairly
the information disclosed therein.
(i) On the date hereof, the Accountants shall have furnished to the
Underwriters a letter, dated the date of its delivery, addressed to the
Underwriters and in form and substance satisfactory to the Underwriters (and to
its counsel), confirming that they are independent public accountants with
respect to the Operating Partnership, the Company and the Subsidiaries as
required by the Securities Act and with respect to the financial and other
statistical and numerical information contained in the Registration Statement
and the Prospectus and containing statements and information of the type
ordinarily included in accountants' "comfort letters" as set forth in the
AICPA's Statement on Auditing Standards 72. At the Closing Date, the Accountants
shall have furnished to the Underwriters a letter, dated the date of its
delivery, which shall confirm, on the basis of a review in accordance with the
procedures set forth in the letter from it, that nothing has come to its
attention during the period from the date of the letter referred to in the prior
sentence to a date (specified in the letter) not more than five days prior to
the Closing Date, which would require any change in its letter dated the date
hereof if it were required to be dated and delivered at the Closing Date;
(j) You shall have received on the Closing Date an opinion, dated the
Closing Date, of Rogers & Wells LLP ("Rogers & Wells"), counsel for the
Underwriters, as to the matters referred to in clause (i) (with respect to the
Company only) of Section 6(g) and clauses (ii) (with respect to the Operating
Partnership and the first sentence only), (iv), (v), (viii), (ix), (xi) and
(xii) of Section 6(f) and in addition, Rogers & Wells shall make statements
similar to those contained in the second paragraph following Section 6(f)(xvii)
hereto and shall be entitled to rely on those persons described in the third
paragraph following Section 6(f)(xvii) hereto with respect to the matters
described therein.
<PAGE>
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(k) At the Closing Date, the Securities shall have the ratings accorded by
any "nationally recognized statistical organization," as defined by the
Commission for purposes of Rule 436(g)(2) under the Act if and as specified in
Schedule I hereto, and the Operating Partnership shall have delivered to J.P.
Morgan Securities Inc. a letter, dated as of such date, from each such rating
organization, or other evidence satisfactory J.P. Morgan Securities Inc.,
confirming that the Securities have such ratings. Since the date hereof, there
shall not have occurred a downgrading in the rating assigned to the Securities
or any of the Company's securities or the Operating Partnership's other
securities by any such rating organization, and no such rating organization
shall have publicly announced that it has under surveillance or review, with
possible negative implications, its rating of the Securities or any of the
Company's securities or the Operating Partnership's other securities.
(l) If the Registration Statement or an offering of Securities has been
filed with the NASD for review, the NASD shall not have raised any objection
with respect to the fairness and reasonableness of the underwriting terms and
arrangements.
(m) At the Closing Date, counsel for the Underwriters shall have been
furnished with such documents and opinions as they may reasonably require for
the purpose of enabling them to pass upon the issuance and sale of the
Securities, as herein contemplated and related proceedings, or in order to
evidence the accuracy of any of the representations or warranties, or the
fulfillment of any of the conditions, herein contained; and all proceedings
taken by the Operating Partnership and the Company in connection with the
issuance and sale of the Securities as herein contemplated shall be reasonably
satisfactory in form and substance to the Underwriters and counsel for the
Underwriters.
The opinions and certificates mentioned in this Agreement shall be deemed
to be in compliance with the provisions hereof only if they are in all material
respects satisfactory to you and to Rogers & Wells, counsel for the
Underwriters.
7. The Company and the Operating Partnership, jointly and severally, agree
to indemnify and hold harmless each Underwriter and each person, if any, who
controls any Underwriter within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities (including without limitation the legal
fees and other expenses incurred in connection with any suit, action or
proceeding or any claim
<PAGE>
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asserted) caused by any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement or the Prospectus (as
amended or supplemented if the Company or the Operating Partnership shall have
furnished any amendments or supplements thereto) or any preliminary prospectus,
or caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such losses, claims, damages or liabilities are
caused by any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with information relating to
any Underwriter furnished to the Company or the Operating Partnership in writing
by such Underwriter through you expressly for use therein; provided, that the
foregoing indemnity with respect to any preliminary prospectus shall not inure
to the benefit of any Underwriter (or to the benefit of the person controlling
such Underwriter) from whom the person asserting any such losses, claims,
damages or liabilities purchased Securities if such untrue statement or omission
or alleged untrue statement or omission made in such preliminary prospectus or
preliminary prospectus supplement is eliminated or remedied in the Prospectus
(as amended or supplemented if the Company or the Operating Partnership shall
have furnished any amendments or supplements thereto) and, if required by law, a
copy of the Prospectus (as so amended or supplemented) shall not have been
furnished to such person at or prior to the written confirmation of the sale of
such Securities to such person, provided further that the Company and the
Operating Partnership shall have complied with their obligations under Section
5(a) hereof with respect to the Prospectus (as so amended or supplemented).
Each Underwriter agrees, severally and not jointly, to indemnify and hold
harmless the Company and the Operating Partnership, and the Company's and the
Operating Partnership's officers and directors who sign the Registration
Statement and each person who controls the Company or the Operating Partnership
within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act, to the same extent as the foregoing indemnity from the Company and
the Operating Partnership to each Underwriter, but only with reference to
information relating to such Underwriter furnished to the Company and the
Operating Partnership in writing by such Underwriter through you expressly for
use in the Registration Statement, the Prospectus, any amendment or supplement
thereto, or any preliminary prospectus. For purposes of this Section 7 and
Section 4(b), the only written information furnished by the Underwriters to the
Company expressly for use in the Registration Statement and
<PAGE>
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the Prospectus is (a) the names of the Underwriters on the cover page of the
Prospectus specifically relating to the Securities, (b) the information
regarding stabilization on the inside front cover page of the Prospectus
specifically relating to the Securities and (c) the information in the chart,
and the third and sixth paragraphs under the caption "Underwriting" in the
Prospectus.
If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any person
in respect of which indemnity may be sought pursuant to either of the two
preceding paragraphs, such person (the "Indemnified Person") shall promptly
notify the person against whom such indemnity may be sought (the "Indemnifying
Person") in writing, and the Indemnifying Person, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others the
Indemnifying Person may designate in such proceeding and shall pay the fees and
expenses of such counsel related to such proceeding. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Person
unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary, (ii) the Indemnifying Person has failed within
a reasonable time to retain counsel reasonably satisfactory to the Indemnified
Person or (iii) the named parties in any such proceeding (including any
impleaded parties) include both the Indemnifying Person and the Indemnified
Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is
understood that the Indemnifying Person shall not, in connection with any
proceeding or related proceeding in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local
counsel) for all Indemnified Persons, and that all such fees and expenses shall
be reimbursed as they are incurred. Any such separate firm for the Underwriters
and such control persons of Underwriters shall be designated in writing by J.P.
Morgan Securities Inc. and any such separate firm for the Company, the Operating
Partnership, their directors, their officers who sign the Registration Statement
and such control persons of the Company and the Operating Partnership or
authorized representatives shall be designated in writing by the Company or the
Operating Partnership. The Indemnifying Person shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the
<PAGE>
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Indemnifying Person agrees to indemnify any Indemnified Person from and against
any loss or liability by reason of such settlement or judgment. Notwithstanding
the foregoing sentence, if at any time an Indemnified Person shall have
requested an Indemnifying Person to reimburse the Indemnified Person for fees
and expenses of counsel as contemplated by the third sentence of this paragraph,
the Indemnifying Person agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by such Indemnifying Person of the
aforesaid request and (ii) such Indemnifying Person shall not have reimbursed
the Indemnified Person in accordance with such request prior to the date of such
settlement. If it is ultimately determined that an Indemnified Person was not
entitled to indemnification hereunder, such Indemnified Person shall be
responsible for repaying or reimbursing the Indemnifying Person for any amounts
so paid or incurred by such Indemnifying Person pursuant to this paragraph. No
Indemnifying Person shall, without the prior written consent of the Indemnified
Person, effect any settlement of any pending or threatened proceeding in respect
of which any Indemnified Person is or could have been a party and indemnity
could have been sought hereunder by such Indemnified Person, unless such
settlement includes an unconditional release of such Indemnified Person from all
liability on claims that are the subject matter of such proceeding.
If the indemnification provided for in the first and second paragraphs of
this Section 7 is unavailable to an Indemnified Person in respect of any losses,
claims, damages or liabilities referred to therein, then each Indemnifying
Person under such paragraph, in lieu of indemnifying such Indemnified Person
thereunder, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities (a) in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Operating Partnership on the one hand and the Underwriters on
the other
<PAGE>
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hand from the offering of the Securities or (b) if the allocation provided by
clause (a) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (a)
above but also the relative fault of the Company and the Operating Partnership
on the one hand and the Underwriters on the other in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company and the Operating Partnership on the
one hand and the Underwriters on the other shall be deemed to be in the same
respective proportions as the net proceeds from the offering of such Securities
(before deducting expenses) received by the Company and the Operating
Partnership and the total underwriting discounts and the commissions received by
the Underwriters bear to the aggregate public offering price of the Securities.
The relative fault of the Company and the Operating Partnership on the one hand
and the Underwriters on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company and the Operating Partnership on the one
hand or by the Underwriters on the other and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.
The Company, the Operating Partnership and the Underwriters agree that it
would not be just and equitable if contribution pursuant to this Section 7 were
determined by pro rata allocation (even if the Underwriters were treated as one
entity for such purpose) or by any other method of allocation that does not take
account of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Person as a result of
the losses, claims, damages and liabilities referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses incurred by such Indemnified Person in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7, in no event shall an
Underwriter be required to contribute any amount in excess of the amount by
which the total price at which the Securities underwritten by it and distributed
to the public were offered to the public exceeds the amount of any damages that
such Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Underwriters' obligations to
contribute pursuant to this Section 7 are several in proportion to the
respective principal amounts of Securities set forth opposite their names in
Schedule II hereto, and not joint,
The remedies provided for in this Section 7 are not exclusive and shall not
limit any rights or remedies which may
<PAGE>
-41-
otherwise be available to any indemnified party at law or in equity.
The indemnity and contribution agreements contained in this Section 7 and
the representations, warranties and covenants of the Company and the Operating
Partnership set forth in this Agreement shall remain operative and in full force
and effect regardless of (a) any termination of this Agreement, (b) any
investigation made by or on behalf of any Underwriter or any person controlling
any Underwriter or by or on behalf of the Company, its officers or directors or
any other person controlling the Company or the Operating Partnership and (c)
acceptance of and payment for any of the Securities.
8. Notwithstanding anything herein contained, this Agreement may be
terminated in your absolute discretion by notice given to the Operating
Partnership, if after the execution and delivery of this Agreement and prior to
the Closing Date (a) the Company and the Operating Partnership shall have
failed, refused or been unable, at or prior to the Closing Date, to perform any
agreements on its part to be performed hereunder, (b) any other conditions to
the Underwriters' obligations hereunder are not fulfilled, (c) trading generally
shall have been suspended or materially limited on or by, as the case may be,
any of the New York Stock Exchange, the American Stock Exchange, the National
Association of Securities Dealers, Inc., the Chicago Board Options Exchange, the
Chicago Mercantile Exchange or the Chicago Board of Trade, (d) trading of any
securities of or guaranteed by the Company and the Operating Partnership shall
have been suspended on any exchange or in any over-the-counter market, (e) a
general moratorium on commercial banking activities in New York shall have been
declared by either Federal or New York State authorities; or (f) there shall
have occurred any outbreak or escalation of hostilities or any change in
financial markets or any calamity or crisis that, in your judgment, is material
and adverse and which, in your judgment, makes it impracticable to market the
Securities on the terms and in the manner contemplated in the Prospectus.
9. If, on the Closing Date, any one or more of the Underwriters shall fail
or refuse to purchase Securities which it or they have agreed to purchase under
this Agreement, and the aggregate principal amount of Securities, which such
defaulting Underwriter or Underwriters agreed but failed or refused to purchase
is not more than one-tenth of the aggregate principal amount of the Securities,
the other Underwriter or Underwriters shall be obligated severally in the
proportions that the princi-
<PAGE>
-42-
pal amount of Securities set forth opposite their respective names in Schedule
II hereto bears to the aggregate principal amount of Securities set forth
opposite the names of all such non-defaulting Underwriters, or in such other
proportions as the non-defaulting Underwriters may specify, to purchase the
Securities which such defaulting Underwriter or Underwriters agreed but failed
or refused to purchase on such date; provided that in no event shall the
principal amount of Securities that any Underwriter has agreed to purchase
pursuant to Section 1 be increased pursuant to this Section 9 by an amount in
excess of one-ninth of such principal amount of Securities without the written
consent of such Underwriter. If, on the Closing Date, any Underwriter or
Underwriters shall fail or refuse to purchase Securities and the aggregate
principal amount of Securities with respect to which such default occurs is more
than one-tenth of the aggregate principal amount of Securities to be purchased,
and arrangements satisfactory to the Underwriters and the Operating Partnership
for the purchase of such Securities are not made within 36 hours after such
default, this Agreement shall terminate without liability on the part of any
non-defaulting Underwriter or the Operating Partnership. In any such case either
you or the Company and the Operating Partnership shall have the right to
postpone the Closing Date, but in no event for longer than seven days, in order
that the required changes, if any, in the Registration Statement and in the
Prospectus or in any other documents or arrangements may be effected. Any action
taken under this paragraph shall not relieve any defaulting Underwriter from
liability in respect of any default of such Underwriter under this Agreement.
10. If this Agreement shall be terminated by the Underwriters, or any of
them, because of any failure or refusal on the part of the Company and the
Operating Partnership to comply with the terms or to fulfill any of the
conditions of this Agreement, or if for any reason the Company and the Operating
Partnership shall be unable to perform their obligations under this Agreement or
any condition of the Underwriters' obligations cannot be fulfilled, the Company
and the Operating Partnership agree to reimburse the Underwriters or such
Underwriters as have so terminated this Agreement with respect to themselves,
severally, for all out-of-pocket expenses (including the fees and expenses of
their counsel) reasonably incurred by the Underwriters in connection with this
Agreement or the offering of Securities contemplated hereunder and the Company
and the Operating Partnership shall then be under no further liability to any
Underwriters pursuant to this Agreement except as provided in Sections 5(k) and
7 of this Agreement.
<PAGE>
-43-
11. This Agreement shall inure to the benefit of and be legally binding
upon the Company, the Operating Partnership, the Underwriters, any controlling
persons referred to herein and their respective successors and assigns. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to
give any other person, firm or corporation any legal or equitable right, remedy
or claim under or in respect of this Agreement or any provision herein
contained. No purchaser of Securities from any Underwriter shall be deemed to be
a successor by reason merely of such purchase.
12. Any action by the Underwriters hereunder may be taken by you jointly or
by J.P. Morgan Securities Inc. alone on behalf of the Underwriters, and any such
action taken by you jointly or by J.P. Morgan Securities Inc. alone shall be
binding upon the Underwriters. All notices and other communications hereunder
shall be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication. Notices to the
Underwriters shall be given to the Underwriters, c/o J.P. Morgan Securities
Inc., 60 Wall Street, New York, New York 10260, Attention: Syndicate Department,
with a copy to Rogers & Wells LLP, 200 Park Avenue, New York, New York 10166,
Attention: Robert E. King, Jr., Esq. Notices to the Company shall be given to it
at First Industrial Realty Trust, Inc., 311 South Wacker Drive, Suite 4000,
Chicago, Illinois, 60606, Attention: Michael T. Tomasz, with a copy to Cahill
Gordon & Reindel, 80 Pine Street, New York, New York, 10005, Attention: Gerald
S. Tanenbaum, Esq.
13. This Agreement may be signed in counterparts, each of which shall be an
original and all of which together shall constitute one and the same instrument.
14. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without giving effect to the conflicts of
laws provisions thereof.
[Signatures begin on following page.]
<PAGE>
-44-
Very truly yours,
FIRST INDUSTRIAL REALTY TRUST, INC.
By: /s/Gary H. Heigl
---------------------------------
Name: Gary H. Heigl
Title: Sr. Vice President -
Capital Markets
FIRST INDUSTRIAL, L.P.
By: First Industrial Realty
Trust, Inc., as its sole
general partner
By: /s/Gary H. Heigl
---------------------------------
Name: Gary H. Heigl
Title: Sr. Vice President -
Capital Markets
Accepted: July 9, 1998
J.P. MORGAN SECURITIES INC.
DONALDSON, LUFKIN & JENRETTE
SECURITIES CORPORATION
MERRILL LYNCH, PIERCE FENNER & SMITH
INCORPORATED
FIRST CHICAGO CAPITAL MARKETS, INC.
WARBURG DILLON READ LLC
c/o J.P. Morgan Securities Inc.
60 Wall Street
New York, New York 10260
By: J.P. MORGAN SECURITIES INC., on
behalf of itself and the several
Underwriters listed in Schedule II
hereto
By: /s/Robert Post
----------------------------------------
Name: Robert Post
Title: Managing Director
<PAGE>
-45-
SCHEDULE I
Underwriters: J.P. Morgan Securities Inc.
Donaldson, Lufkin & Jenrette
Securities Corporation
First Chicago Capital Markets, Inc.
Merrill Lynch, Pierce Fenner &
Smith Incorporated
Warburg Dillon Read LLC
Underwriting Agreement dated: July 9, 1998
Registration Statement No.: 333-43641
Title of Securities: 7.60% Notes due 2028 (the "Notes")
Aggregate principal amount: $200,000,000
Price to Public: 99.882% of the principal amount of the
Notes, plus accrued interest, if any, from
July 14, 1998
Purchase Price: 99.007% of the principal amount of the
Notes, plus accrued interest, if any, from
July 14, 1998
Indenture: Indenture dated as of May 13, 1997 and the
Fifth Supplemental Indenture to be dated as
of July 14, 1998, both between the
Operating Partnership and the Trustee
Maturity: July 15, 2028
Interest Rate: 7.60%
Interest Payment Dates: January 15 and July 15, commencing
January 15, 1999
Redemption: At the option of the Operating Partnership
at any time
Sinking Fund Provisions: None
<PAGE>
-46-
Other Significant provisions: As set forth in the Prospectus
Ratings: Standard & Poor's: "BBB+"
Fitch Investor Service, L.P.: "BBB+"
Moody's Investors Service: "Baa2"
Duff & Phelps: "BBB"
Closing Date and Time of Delivery: The Closing will be held at 9:00 A.M. (New
York City time) on July 14, 1998, with the
Securities being delivered through the
book-entry facilities of The Depository
Trust Company ("DTC") and made available
for checking by DTC and the Trustee at
least 24 hours prior to the Closing Date.
Closing Location: Rogers & Wells LLP
200 Park Avenue
New York, NY 10166
<PAGE>
-47-
Principal Amount
of Securities To Be
Underwriters Purchased
J.P. Morgan Securities Inc..................... $120,000,000
Donaldson, Lufkin & Jenrette
Securities Corporation....................... 20,000,000
First Chicago Capital Markets, Inc............. 20,000,000
Merrill Lynch, Pierce Fenner
& Smith Incorporated 20,000,000
Warburg Dillon Read LLC $200,000,000
Total.......................................... $200,000,000
============
<PAGE>
-48-
SCHEDULE III
JURISDICTIONS OF FOREIGN QUALIFICATION
OF THE COMPANY,THE CORPORATE
SUBSIDIARIES AND THE PARTNERSHIP SUBSIDIARIES
ENTITY: JURISDICTION
First Industrial, L.P. Georgia1
Illinois*
Indiana*
Iowa
Michigan
Minnesota*
Missouri
New Jersey*
New York*
Ohio
Pennsylvania
Tennessee
Wisconsin
First Industrial Realty Trust, Inc. Georgia*
Illinois*
Indiana*
Michigan*
Minnesota*
New Jersey*
New York*
Ohio
First Industrial Securities, L.P. Illinois
Michigan
Minnesota
Pennsylvania
First Industrial Securities Corporation Illinois*
Michigan*
First Industrial Pennsylvania Pennsylvania
Partnership, L.P.
- ----------
1 Denotes jurisdictions on which counsel is opining.
<PAGE>
-49-
First Industrial Pennsylvania Pennsylvania
Corporation
First Industrial Harrisburg, L.P. Pennsylvania
First Industrial Harrisburg Corporation Pennsylvania
First Industrial Financing Partnership, L.P. Georgia
Illinois
Iowa
Michigan
Minnesota
Missouri
New Hampshire
Pennsylvania
Tennessee
Texas
Wisconsin
First Industrial Finance Corporation Georgia*
Illinois*
Michigan*
Wisconsin
First Industrial Management Corporation Georgia
Illinois
Indiana
Iowa
Kansas
Michigan
Minnesota
Missouri
New Hampshire
Ohio
Pennsylvania
Tennessee
Texas
Wisconsin
First Industrial (Atlanta) Management None
Corporation
<PAGE>
-50
FR Acquisitions, Inc. Georgia
Illinois
Indiana
Michigan
Minnesota
Missouri
Ohio
Pennsylvania
Tennessee
Wisconsin
First Industrial Mortgage Partnership, L.P. Georgia
Illinois
Michigan
Minnesota
Missouri
Tennessee
First Industrial Mortgage Corporation Illinois
Michigan
First Industrial Indianapolis, L.P. Indiana
First Industrial Indianapolis None
Corporation
First Industrial Development Services None
Group, L.P.
FI Development Services Corporation None
- -------------------------------------------------------------------------------
FIRST INDUSTRIAL, L.P.
Issuer
to
U.S. BANK TRUST NATIONAL ASSOCIATION
Trustee
---------------------
Supplemental Indenture No. 5
Dated as of July 14, 1998
---------------------
$200,000,000
of
7.60% Notes due 2028
- -------------------------------------------------------------------------------
<PAGE>
SUPPLEMENTAL INDENTURE NO. 5, dated as of July 14, 1998 (the "Supplemental
Indenture"), between FIRST INDUSTRIAL, L.P., a limited partnership duly
organized and existing under the laws of the State of Delaware (herein called
the "Operating Partnership"), and U.S. BANK TRUST NATIONAL ASSOCIATION, a
national banking association duly organized and existing under the laws of the
United States of America, as Trustee (herein called the "Trustee").
RECITALS OF THE OPERATING PARTNERSHIP
The Operating Partnership has heretofore delivered to the Trustee an
Indenture dated as of May 13, 1997 (the "Indenture"), a form of which has been
filed with the Securities and Exchange Commission under the Securities Act of
1933, as amended, as an exhibit to the Operating Partnership's Registration
Statement on Form S-3 (Registration No. 333-21873), providing for the issuance
from time to time of Debt Securities of the Operating Partnership (the
"Securities").
Section 301 of the Indenture provides for various matters with respect to
any series of Securities issued under the Indenture to be established in an
indenture supplemental to the Indenture.
Section 901(7) of the Indenture provides for the Operating Partnership and
the Trustee to enter into an indenture supplemental to the Indenture to
establish the form or terms of Securities of any series as provided by Sections
201 and 301 of the Indenture.
All the conditions and requirements necessary to make this Supplemental
Indenture, when duly executed and delivered, a valid and binding agreement in
accordance with its terms and for the purposes herein expressed, have been
performed and fulfilled.
NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the series of
Securities provided for herein by the Holders thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the Notes,
as follows:
<PAGE>
-2-
ARTICLE ONE
RELATION TO INDENTURE; DEFINITIONS
SECTION 1.1. Relation to Indenture.
This Supplemental Indenture constitutes an integral part of the Indenture.
SECTION 1.2. Definitions.
For all purposes of this Supplemental Indenture, except as otherwise
expressly provided for or unless the context otherwise requires:
(1) Capitalized terms used but not defined herein shall have the
respective meanings assigned to them in the Indenture; and
(2) All references herein to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of this
Supplemental Indenture.
"Acquired Indebtedness" means Indebtedness of a Person (i) existing at the
time such Person becomes a Subsidiary or (ii) assumed in connection with the
acquisition of assets from such Person, in each case, other than Indebtedness
incurred in connection with, or in contemplation of, such Person becoming a
Subsidiary or such acquisition. Acquired Indebtedness shall be deemed to be
incurred on the date of the related acquisition of assets from any Person or the
date the acquired Person becomes a Subsidiary.
"Annual Service Charge" for any period means (i) the aggregate interest
expense for such period in respect of, and the amortization during such period
of any original issue discount of, Indebtedness of the Operating Partnership and
its Subsidiaries and the amount of dividends which are payable during such
period in respect of any Disqualified Stock and (ii) so long as First
Securities, L.P. ("Securities, L.P.") is a Subsidiary of the Operating
Partnership, distributions which are payable during such period in respect of
any preference equity interests of Securities, L.P.
"Business Day" means any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which
<PAGE>
-3-
banks in New York City or in Chicago are authorized or required by law,
regulation or executive order to close.
"Capital Stock" means, with respect to any Person, any capital stock
(including preferred stock), shares, interests, participations or other
ownership interests (however designated) of such Person and any rights (other
than debt securities convertible into or exchangeable for corporate stock),
warrants or options to purchase any thereof.
"Consolidated Income Available for Debt Service" for any period means
Earnings from Operations of the Operating Partnership and its Subsidiaries plus
amounts which have been deducted, and minus amounts which have been added, for
the following (without duplication): (i) interest on Indebtedness of the
Operating Partnership and its Subsidiaries, (ii) provision for taxes of the
Operating Partnership and its Subsidiaries based on income, (iii) amortization
of debt discount, (iv) provisions for gains and losses on properties and
property depreciation and amortization, (v) the effect of any noncash charge
resulting from a change in accounting principles in determining Earnings from
Operations for such period, (vi) amortization of deferred charges and (vii)
interest income related to investments irrevocably deposited with an agent of
the Operating Partnership or any of its Subsidiaries, as the case may be, for
the purpose of defeasing any indebtedness or any other obligation (whether
through a covenant defeasance or otherwise) pursuant to the terms of such
indebtedness or other obligation or the terms of any instrument creating or
evidencing it.
"Corporate Trust Office" means the office of the Trustee at which, at any
particular time, its corporate trust business shall be administered, which
office at the date hereof is located at One Illinois Center, 111 East Wacker
Drive, Suite 3000, Chicago, Illinois 60601 and, for purposes of the Place of
Payment provisions of Sections 305 and 1002 of the Indenture, is located at 100
Wall Street, Suite 2000, New York, New York 10005.
"Disqualified Stock" means, with respect to any Person, any Capital Stock
of such Person which by the terms of such Capital Stock (or by the terms of any
security into which it is convertible or for which it is exchangeable or
exercisable), upon the happening of any event or otherwise, (i) matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise
(other than Capital Stock which is redeemable solely in exchange for Capital
Stock which is not Disqualified Stock or the maturity price or redemption price
of
<PAGE>
-4-
which may, at the option of such Person, be paid in Capital Stock which is not
Disqualified Stock), (ii) is convertible into or exchangeable or exercisable for
Indebtedness or Disqualified Stock or (iii) is redeemable at the option of the
holder thereof, in whole or in part (other than Capital Stock which is
redeemable solely in exchange for Capital Stock which is not Disqualified Stock
or the redemption price of which may, at the option of such Person, be paid in
Capital Stock which is not Disqualified Stock), in each case on or prior to the
Stated Maturity of the Notes.
"Earnings from Operations" for any period means net income excluding gains
and losses on sales of investments, extraordinary items and property valuation
losses, net as reflected in the financial statements of the Operating
Partnership and its Subsidiaries for such period determined on a consolidated
basis in accordance with GAAP (except that for purposes hereof, each Subsidiary
of the Operating Partnership shall be treated as if such Subsidiary were a
subsidiary under GAAP).
"Encumbrance" means any mortgage, lien, charge, pledge or security interest
of any kind; provided, however, that the term "Encumbrance" shall not include
any mortgage, lien, charge, pledge or security interest securing any
indebtedness or any other obligation which has been defeased (whether a covenant
defeasance or otherwise) pursuant to the terms of such indebtedness or other
obligation or the terms of any instrument creating or evidencing it.
"Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder by the Commission.
"GAAP" means generally accepted accounting principles as used in the United
States applied on a consistent basis as in effect from time to time; provided
that solely for purposes of any calculation required by the financial covenants
contained herein, "GAAP" shall mean generally accepted accounting principles as
used in the United States on the date hereof, applied on a consistent basis.
"Indebtedness" of the Operating Partnership or any of its Subsidiaries
means any indebtedness of the Operating Partnership or any of its Subsidiaries,
whether or not contingent, in respect of (a) borrowed money or evidenced by
bonds, notes, debentures or similar instruments whether or not such indebtedness
is secured by any Encumbrance existing on property owned
<PAGE>
-5-
by the Operating Partnership or any of its Subsidiaries, (b) indebtedness for
borrowed money of a Person other than the Operating Partnership or a Subsidiary
of the Operating Partnership which is secured by any Encumbrance existing on
property owned by the Operating Partnership or any of its Subsidiaries, to the
extent of the lesser of (x) the amount of indebtedness so secured and (y) the
fair market value of the property subject to such Encumbrance, (c) the
reimbursement obligations, contingent or otherwise, in connection with any
letters of credit actually issued or amounts representing the balance deferred
and unpaid of the purchase price of any property or services, except any such
balance that constitutes an accrued expense or trade payable, and all
conditional sale obligations or obligations under any title retention agreement,
(d) the principal amount of all obligations of the Operating Partnership or any
of its Subsidiaries with respect to redemption, repayment or other repurchase of
any Disqualified Stock, (e) any lease of property by the Operating Partnership
or any of its Subsidiaries as lessee which is reflected on the Operating
Partnership's consolidated balance sheet determined in accordance with GAAP
(except that for the purposes hereof, each Subsidiary of the Operating
Partnership shall be treated as if such Subsidiary were a subsidiary under GAAP)
as a capitalized lease, or (f) interest rate swaps, caps or similar agreements
and foreign exchange contracts, currency swaps or similar agreements, and (ii)
the liquidation preference on any issued and outstanding preferred equity
interests of Securities, L.P., to the extent, in the case of items of
indebtedness under (i)(a) through (c) above, that any such items (other than
letters of credit) would appear as a liability on the Operating Partnership's
consolidated balance sheet determined in accordance with GAAP (except that for
the purposes hereof, each Subsidiary of the Operating Partnership shall be
treated as if such Subsidiary were a subsidiary under GAAP), and also includes,
to the extent not otherwise included, any obligation by the Operating
Partnership or any of its Subsidiaries to be liable for, or to pay, as obligor,
guarantor or otherwise (other than for purposes of collection in the ordinary
course of business), Indebtedness of another Person (other than the Operating
Partnership or any of its Subsidiaries) (it being understood that Indebtedness
shall be deemed to be incurred by the Operating Partnership or any of its
Subsidiaries whenever the Operating Partnership or such Subsidiary shall create,
assume, guarantee or otherwise become liable in respect thereof); provided,
however, that the term "Indebtedness" shall not include any indebtedness or any
other obligation that has been defeased (whether a covenant defeasance or
otherwise) pursuant to the
<PAGE>
-6-
terms of such indebtedness or other obligation or the terms of any instrument
creating or evidencing it.
"Make-Whole Amount" means, in connection with any optional redemption of
any Note, the excess, if any, of (i) the aggregate present value as of the date
of such redemption of each dollar of principal being redeemed and the amount of
interest (exclusive of interest accrued to the date of redemption) that would
have been payable in respect of such dollar if such redemption had not been
made, determined by discounting, on a semi-annual basis, such principal and
interest at the Reinvestment Rate (determined on the third Business Day
preceding the date such notice of Redemption is given) from the date on which
such principal and interest would have been payable if such redemption had not
been made, over (ii) the aggregate principal amount of the Notes being redeemed.
"Notes" has the meaning specified in Section 2.1 hereof.
"Reinvestment Rate" means .25% (twenty-five one hundredths of one percent)
plus the arithmetic mean of the yields under the respective headings "This Week"
and "Last Week" published in the Statistical Release under the caption "Treasury
Constant Maturities" for the maturity (rounded to the nearest month)
corresponding to the remaining life to maturity, as of the payment date of the
principal being redeemed. If no maturity exactly corresponds to such maturity,
yields for the two published maturities most closely corresponding to such
maturity shall be calculated pursuant to the immediately preceding sentence and
the Reinvestment Rate shall be interpolated or extrapolated from such yields on
a straight-line basis, rounding in each of such relevant periods to the nearest
month. For such purposes of calculating the Reinvestment Rate, the most recent
Statistical Release published prior to the date of determination of the
Make-Whole Amount shall be used.
"Statistical Release" means the statistical release designated "H.15(519)"
or any successor publication which is published weekly by the Federal Reserve
System and which establishes yields on actively traded United States government
securities adjusted to constant maturities or, if such statistical release is
not published at the time of any determination of the Make-Whole Amount, then
such other reasonably comparable index which shall be designated by the
Operating Partnership.
"Subsidiary" means, (i) with respect to any Person, any corporation,
partnership or other entity of which a major-
<PAGE>
-7-
ity of (a) the voting power of the voting equity securities or (b) the
outstanding equity interests of which are owned, directly or indirectly, by such
Person and (ii) with respect to the Operating Partnership, Securities, L.P., so
long as the Operating Partnership owns, directly or indirectly, a majority of
the outstanding non-preference equity interests thereof. For the purposes of
this definition, "voting equity securities" means equity securities having
voting power for the election of directors, whether at all times or only so long
as no senior class of security has such voting power by reason of any
contingency.
"Total Assets" as of any date means the sum of (i) the Undepreciated Real
Estate Assets and (ii) all other assets of the Operating Partnership and its
Subsidiaries determined in accordance with GAAP (except that for the purposes
hereof, each Subsidiary of the Operating Partnership shall be treated as if such
Subsidiary were a subsidiary under GAAP), but excluding accounts receivable and
intangibles; provided, however, that the term "Total Assets" shall not include
any assets which have been deposited in trust to defease any indebtedness or any
other obligation (whether through a covenant defeasance or otherwise) pursuant
to the terms of such indebtedness or other obligation or the terms of any
instrument creating or evidencing it.
"Total Unencumbered Assets" means the sum of (i) those Undepreciated Real
Estate Assets not subject to an Encumbrance for borrowed money and (ii) all
other assets of the Operating Partnership and its Subsidiaries not subject to an
Encumbrance for borrowed money, determined in accordance with GAAP (except that
for the purposes hereof, each Subsidiary of the Operating Partnership shall be
treated as if such Subsidiary were a subsidiary under GAAP), but excluding
accounts receivable and intangibles; provided, however, that the term "Total
Unencumbered Assets" shall not include any assets which have been deposited in
trust to defease any indebtedness or any other obligation (whether through a
covenant defeasance or otherwise) pursuant to the terms of such indebtedness or
other obligation or the terms of any instrument creating or evidencing it.
"Undepreciated Real Estate Assets" as of any date means the cost (original
cost plus capital improvements) of real estate assets of the Operating
Partnership and its Subsidiaries on such date, before depreciation and
amortization, determined on a consolidated basis in accordance with GAAP (except
for the purposes hereof, each Subsidiary of the Operat-
<PAGE>
-8-
ing Partnership shall be treated as if such Subsidiary were a subsidiary under
GAAP).
"Unsecured Indebtedness" means Indebtedness which is not secured by any
Encumbrance upon any of the properties of the Operating Partnership or any of
its Subsidiaries.
ARTICLE TWO
THE SERIES OF NOTES
SECTION 2.1. Title of the Notes.
There shall be a series of Securities designated the "7.60% Notes due 2028"
(the "Notes").
SECTION 2.2. Limitation on Aggregate
Principal Amount.
The aggregate principal amount of the Notes shall be limited to
$200,000,000, and, except as provided in this Section and in Section 306 of the
Indenture, the Operating Partnership shall not execute and the Trustee shall not
authenticate or deliver Notes in excess of such aggregate principal amount.
Nothing contained in this Section 2.2 or elsewhere in this Supplemental
Indenture, or in the Notes, is intended to or shall limit execution by the
Operating Partnership or authentication or delivery by the Trustee of Notes
under the circumstances contemplated by Sections 303, 304, 305, 306, 906, 1107
and 1305 of the Indenture.
SECTION 2.3. Interest and Interest Rates;
Maturity Date of Notes.
The Notes will bear interest at a rate of 7.60% per annum from July 14,
1998 or from the immediately preceding Interest Payment Date to which interest
has been paid, payable semi-annually in arrears on January 15 and July 15 of
each year, commencing January 15, 1999 (each, an "Interest Payment Date"), and,
if not otherwise an Interest Payment Date, at the Stated Maturity, to the
Persons in whose name the applicable Notes are registered in the Security
Register at the close of business on the preceding January 1 or July 1 (whether
or not a Business Day), as the case may be. Interest will be computed
<PAGE>
-9-
on the basis of a 360-day year comprised of twelve 30-day months. The interest
so payable on any Note which is not punctually paid or duly provided for on any
Interest Payment Date shall forthwith cease to be payable to the Person in whose
name such Note is registered on the relevant Regular Record Date, and such
defaulted interest shall instead be payable to the Person in whose name such
Note is registered on the Special Record Date or other specified date determined
in accordance with the Indenture.
If any Interest Payment Date or Stated Maturity falls on a day that is not
a Business Day, the required payment shall be made on the next Business Day as
if it were made on the date such payment was due and no interest shall accrue on
the amount so payable for the period from and after such Interest Payment Date
or Stated Maturity, as the case may be.
The Notes will mature on July 15, 2028.
SECTION 2.4. Limitations on Incurrence of
Indebtedness.
(a) The Operating Partnership will not, and will not permit any of its
Subsidiaries to, incur any Indebtedness, other than intercompany Indebtedness
(representing Indebtedness to which the only parties are the Operating
Partnership and any of its Subsidiaries (but only so long as such Indebtedness
is held solely by any of the Operating Partnership and any of its
Subsidiaries)), if, immediately after giving effect to the incurrence of such
additional Indebtedness and the application of the proceeds thereof, the
aggregate principal amount of all outstanding Indebtedness of the Operating
Partnership and its Subsidiaries on a consolidated basis determined in
accordance with GAAP (except that for purposes hereof, each Subsidiary of the
Operating Partnership shall be treated as if such Subsidiary were a subsidiary
under GAAP) is greater than 60% of the sum of (without duplication) (i) the
Total Assets as of the end of the calendar quarter covered in the Operating
Partnership's Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as
the case may be, most recently filed with the Commission (or, if such filing is
not permitted under the Exchange Act, with the Trustee) prior to the incurrence
of such additional Indebtedness and (ii) the purchase price of any real estate
assets or mortgages receivable acquired, and the amount of any securities
offering proceeds received (to the extent such proceeds were not used to acquire
real estate assets or mortgages receivable or used to reduce Indebtedness), by
the Operating Partnership or any of its Subsidiaries since the end of such
calendar quar-
<PAGE>
-10-
ter, including those proceeds obtained in connection with the incurrence of such
additional Indebtedness.
(b) The Operating Partnership will not, and will not permit any of its
Subsidiaries to, incur Indebtedness secured by any Encumbrance upon any of the
property of the Operating Partnership or any of its Subsidiaries if, immediately
after giving effect to the incurrence of such additional Indebtedness and the
application of the proceeds thereof, the aggregate principal amount of all
outstanding Indebtedness of the Operating Partnership and its Subsidiaries on a
consolidated basis determined in accordance with GAAP (except that for the
purposes hereof, each Subsidiary of the Operating Partnership shall be treated
as if such Subsidiary were a subsidiary under GAAP) which is secured by any
Encumbrance on property of the Operating Partnership or any of its Subsidiaries
is greater than 40% of the sum of (without duplication) (i) the Total Assets as
of the end of the calendar quarter covered in the Operating Partnership's Annual
Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most
recently filed with the Commission (or, if such filing is not permitted under
the Exchange Act, with the Trustee) prior to the incurrence of such additional
Indebtedness and (ii) the purchase price of any real estate assets or mortgages
receivable acquired, and the amount of any securities offering proceeds received
(to the extent that such proceeds were not used to acquire real estate assets or
mortgages receivable or used to reduce Indebtedness), by the Operating
Partnership or any of its Subsidiaries since the end of such calendar quarter,
including those proceeds obtained in connection with the incurrence of such
additional Indebtedness.
(c) The Operating Partnership and its Subsidiaries may not at any time own
Total Unencumbered Assets equal to less than 150% of the aggregate outstanding
principal amount of the Unsecured Indebtedness of the Operating Partnership and
its Subsidiaries on a consolidated basis determined in accordance with GAAP
(except that for the purposes hereof, each Subsidiary of the Operating
Partnership shall be treated as if such Subsidiary were a subsidiary under
GAAP).
(d) The Operating Partnership will not, and will not permit any of its
Subsidiaries to, incur any Indebtedness if the ratio of Consolidated Income
Available for Debt Service to the Annual Service Charge for the four consecutive
fiscal quarters most recently ended prior to the date on which such additional
Indebtedness is to be incurred shall have been less than 1.5:1, on a pro forma
basis after giving effect thereto and to the application of the proceeds
therefrom, and calculated on
<PAGE>
-11-
the assumption that (i) such Indebtedness and any other Indebtedness incurred by
the Operating Partnership and its Subsidiaries since the first day of such
four-quarter period and the application of the proceeds therefrom, including to
refinance other Indebtedness, had occurred at the beginning of such period; (ii)
the repayment or retirement of any other Indebtedness by the Operating
Partnership and its Subsidiaries since the first day of such four-quarter period
had been repaid or retired at the beginning of such period (except that, in
making such computation, the amount of Indebtedness under any revolving credit
facility shall be computed based upon the average daily balance of such
Indebtedness during such period); (iii) in the case of Acquired Indebtedness or
Indebtedness incurred in connection with any acquisition since the first day of
such four-quarter period, the related acquisition had occurred as of the first
day of such period with the appropriate adjustments with respect to such
acquisition being included in such pro forma calculation; and (iv) in the case
of any acquisition or disposition by the Operating Partnership or its
Subsidiaries of any asset or group of assets since the first day of such
four-quarter period, whether by merger, stock purchase or sale, or asset
purchase or sale, such acquisition or disposition or any related repayment of
Indebtedness had occurred as of the first day of such period with the
appropriate adjustments with respect to such acquisition or disposition being
included in such pro forma calculation.
(e) For purposes of this Section 2.4, Indebtedness shall be deemed to be
"incurred" by the Operating Partnership or a Subsidiary of the Operating
Partnership whenever the Operating Partnership or such Subsidiary shall create,
assume, guarantee or otherwise become liable in respect thereof.
SECTION 2.5. Optional Redemption.
The Notes may be redeemed at any time at the option of the Operating
Partnership, in whole or in part (equal to $1,000 or an integral multiple
thereof), at a redemption price equal to the sum of (i) the principal amount of
the Notes being redeemed plus accrued interest thereon to the Redemption Date
and (ii) the Make-Whole Amount, with respect to such Notes.
SECTION 2.6. Places of Payment.
The Places of Payment where the Notes may be presented or surrendered for
payment, where the Notes may be surrendered for registration of transfer or
exchange and where notices and demands to and upon the Operating Partnership in
re-
<PAGE>
-12-
spect of the Notes and the Indenture may be served shall be in (i) the Borough
of Manhattan, The City of New York, New York, and the office or agency for such
purpose shall initially be located at U.S. Bank Trust National Association, 100
Wall Street, Suite 2000, New York, New York 10005 and (ii) the City of Chicago,
Illinois and the office or agency for such purpose shall initially be located at
U.S. Bank National Association, 111 East Wacker Drive, Suite 3000, Chicago,
Illinois 60601.
SECTION 2.7. Method of Payment.
Payment of the principal of and interest on the Notes not represented by a
Global Security will be made at the Corporate Trust Office maintained for that
purpose in the Borough of Manhattan, The City of New York, New York, in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that at
the option of the Operating Partnership, payments of interest on the Notes may
be made (i) by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register or (ii) by wire transfer to
an account maintained by the Person entitled thereto located within the United
States.
SECTION 2.8. Currency.
Principal and interest on the Notes shall be payable in United States
Dollars or in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.
SECTION 2.9. Registered Securities; Global Form.
The Notes shall be issuable and transferable in fully registered form as
Registered Securities, without coupons. The Notes shall be issued in the form of
one Global Security. The depository for the Notes shall be The Depository Trust
Company ("DTC"). The Notes shall not be issuable in definitive form except as
provided in Section 305 of the Indenture.
SECTION 2.10. Form of Notes.
The Notes shall be substantially in the form attached as Exhibit A hereto.
<PAGE>
-13-
SECTION 2.11. Registrar and Paying Agent.
The Trustee shall initially serve as Registrar and Paying Agent for the
Notes.
SECTION 2.12. Defeasance.
The provisions of Sections 1402 and 1403 of the Indenture, together with
the other provisions of Article Fourteen of the Indenture, shall be applicable
to the Notes. The provisions of Section 1403 of the Indenture shall apply to the
covenants set forth in Sections 2.4 and 2.13 of this Supplemental Indenture and
to those covenants specified in Section 1403 of the Indenture.
SECTION 2.13. Provision of Financial Information.
Whether or not the Operating Partnership is subject to Section 13 or 15(d)
of the Exchange Act, the Operating Partnership will, to the extent permitted
under the Exchange Act, file with the Commission the annual reports, quarterly
reports and other documents which the Operating Partnership would have been
required to file with the Commission pursuant to such Section 13 or 15(d) if the
Operating Partnership were so subject, such documents to be filed with the
Commission on or prior to the respective dates (the "Required Filing Dates") by
which the Operating Partnership would have been required so to file such
documents if the Operating Partnership were so subject.
The Operating Partnership will also in any event (x) within 15 days of each
Required Filing Date if the Operating Partnership is not then subject to Section
13 or 15(d) of the Exchange Act, (i) transmit by mail to all Holders, as their
names and addresses appear in the Security Register, without cost to such
Holders, copies of the annual reports and quarterly reports which the Operating
Partnership would have been required to file with the Commission pursuant to
Section 13 or 15(d) of the Exchange Act if the Operating Partnership were
subject to such Sections, and (ii) file with the Trustee copies of annual
reports, quarterly reports and other documents that the Operating Partnership
would have been required to file with the Commission pursuant to Section 13 or
15(d) of the Exchange Act if the Operating Partnership were subject to such
Sections and (y) if filing such documents by the Operating Partnership with the
Commission is not permitted under the Exchange Act, promptly upon written
request and payment of the reasonable
<PAGE>
-14-
cost of duplication and delivery, supply copies of such documents to any
prospective Holder.
SECTION 2.14. Waiver of Certain Covenants.
Notwithstanding the provisions of Section 1009 of the Indenture, the
Operating Partnership may omit in any particular instance to comply with any
term, provision or condition set forth in Sections 1004 to 1008, inclusive, of
the Indenture, with Sections 2.4 and 2.13 of this Supplemental Indenture and
with any other term, provision or condition with respect to the Notes (except
any such term, provision or condition which could not be amended without the
consent of all Holders of the Notes, as applicable), if before or after the time
for such compliance the Holders of at least a majority in principal amount of
all outstanding Notes, as applicable, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition. Except to the extent so expressly waived, and until such waiver shall
become effective, the obligations of the Operating Partnership and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.
ARTICLE THREE
MISCELLANEOUS PROVISIONS
SECTION 3.1. Ratification of Indenture.
Except as expressly modified or amended hereby, the Indenture continues in
full force and effect and is in all respects confirmed and preserved.
SECTION 3.2. Governing Law.
This Supplemental Indenture and each Note shall be governed by and
construed in accordance with the laws of the State of New York. This
Supplemental Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, and shall, to the extent applicable, be governed by such
provisions.
SECTION 3.3. Counterparts.
This Supplemental Indenture may be executed in any number of counterparts,
each of which so executed shall be
<PAGE>
-15-
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.
<PAGE>
-16-
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed by their respective officers hereunto duly
authorized, all as of the day and year first written above.
FIRST INDUSTRIAL, L.P.
By: First Industrial Realty Trust,
Inc., its general partner
By: /s/ Gary H. Heigl
----------------------------------
Name: Gary H. Heigl
Title: Sr. Vice President-
Capital Markets
U.S. BANK TRUST NATIONAL ASSOCIATION,
as Trustee
By: /s/ F. Sgaraglino
---------------------------------------
Name: F. Sgaraglino
Title: Vice President
By: /s/H.H. Hall, Jr.
---------------------------------------
Name: H.H. Hall, Jr.
Title: Vice President
<PAGE>
Exhibit A to
Supplemental Indenture
Unless this Security is presented by an authorized representative of The
Depository Trust Company ("DTC"), 55 Water Street, New York, New York, to the
Operating Partnership (as defined below) or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the
name of CEDE & CO. or in such other name as is requested by an authorized
representative of DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, CEDE & CO., has an interest herein.
This Security is a Global Security within the meaning set forth in the Indenture
hereinafter referred to and is registered in the name of DTC or a nominee of
DTC. This Security is exchangeable for Securities registered in the name of a
person other than DTC or its nominee only in the limited circumstances described
in the Indenture, and may not be transferred except as a whole by DTC to a
nominee of DTC or another nominee of DTC or by DTC or its nominee to a successor
Depository or its nominee.
Registered No. PRINCIPAL AMOUNT
CUSIP No.: 32055RAE7 $200,000,000
FIRST INDUSTRIAL, L.P.
7.60% NOTE DUE 2028
FIRST INDUSTRIAL, L.P., a limited partnership duly organized and existing
under the laws of the State of Delaware (herein referred to as the "Operating
Partnership" which term shall include any successor entity under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &
CO., or registered assigns, upon presentation, the principal sum of DOLLARS on
July 15, 2028 and to pay interest on the outstanding principal amount thereon
from July 14, 1998, or from the immediately preceding Interest Payment Date to
which interest has been paid or duly provided for, semi-annually in arrears on
January 15 and July 15 in each year, commencing January 15, 1999, at the rate of
7.60% per annum, until the entire principal hereof is paid or made available for
payment. The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person
in whose name this Security is registered at the close of busi-
A-1
<PAGE>
ness on the Regular Record Date for such interest which shall be the December 15
or June 15 (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date, and may either be paid to the Person in whose name this Security is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of the Securities not less than 10 days prior to such Special
Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in the Indenture. All payments of
principal, premium or Make-Whole Amount, if any, and interest in respect of this
Global Security will be made by the Operating Partnership in immediately
available funds.
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the Certificate of Authentication hereon has been executed by the
Trustee by manual signature of one of its authorized signatories, this Security
shall not be entitled to any benefit under the Indenture, or be valid or
obligatory for any purpose.
A-2
<PAGE>
IN WITNESS WHEREOF, FIRST INDUSTRIAL, L.P. has caused this instrument to be
duly executed under its corporate seal.
Dated:
FIRST INDUSTRIAL, L.P.
By: First Industrial Realty Trust,
Inc., its general partner
By:_____________________________
Name:
Title:
[Seal]
Attest:
- ---------------------------
Secretary
TRUSTEE'S CERTIFICATE OF AUTHENTICATION:
This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.
U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee
Dated:______________ By:_________________________
Authorized Signatory
A-3
<PAGE>
REVERSE OF SECURITY
Securities of this series are one of a duly authorized issue of securities
of the Operating Partnership (herein called the "Securities"), issued and to be
issued in one or more series under an Indenture, dated as of May 13, 1997, as
supplemented by Supplemental Indenture No. 5, dated as of July 14, 1998 (as so
supplemented, herein called the "Indenture"), between the Operating Partnership
and U.S. Bank Trust National Association (herein called the "Trustee," which
term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Operating Partnership, the Trustee and the Holders of the Securities and
of the terms upon which the Securities are authenticated and delivered. This
Security is one of the series designated in the first page thereof, limited in
aggregate principal amount to $200,000,000.
Securities of this series may be redeemed at any time at the option of the
Operating Partnership, in whole or in part, at a redemption price equal to the
sum of (i) the principal amount of the Securities being redeemed plus accrued
interest thereon to the Redemption Date and (ii) the Make-Whole Amount, if any,
with respect to such Securities.
Notice of redemption will be given by mail to Holders of Securities, not
less than 30 nor more than 60 days prior to the Redemption Date, all as provided
in the Indenture.
In the event of redemption of this Security in part only, a new Security or
Securities for the unredeemed portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof.
The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness of the Operating Partnership on this Security and (b)
certain restrictive covenants and the related defaults and Events of Default
applicable to the Operating Partnership, in each case, upon compliance by the
Operating Partnership with certain conditions set forth in the Indenture, which
provisions apply to this Security.
If an Event of Default with respect to the Securities shall occur and be
continuing, the principal amount of the Securities may be declared due and
payable in the manner and with the effect provided in the Indenture.
A-4
<PAGE>
As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given
written notice to the Trustee of a continuing Event of Default with respect to
the Securities, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any interest on or after the
respective due dates expressed herein.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Operating Partnership and the rights of the Holders of the Securities of each
series to be affected under the Indenture at any time by the Operating
Partnership and the Trustee with the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities of each series of
Securities then Outstanding affected thereby. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Operating
Partnership with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Operating
Partnership, which is absolute and unconditional, to pay the principal of (and
Make-Whole Amount, if any) and interest on this Security at the times, place and
rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is
A-5
<PAGE>
registrable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Operating Partnership in
any Place of Payment where the principal of (and Make-Whole Amount, if any) and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Operating Partnership
and the Security Registrar duly executed by the Holder hereof or his attorney
duly authorized in writing, and thereupon one or more new Securities of this
series, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer or
exchange, but the Operating Partnership may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the
Operating Partnership, the Trustee and any agent of the Operating Partnership or
the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security be overdue, and
neither the Operating Partnership, the Trustee nor any such agent shall be
affected by notice to the contrary.
No recourse shall be had for the payment of the principal of, premium or
Make-Whole Amount, if any, or interest in respect of this Security, or for any
claim based hereon, or otherwise in respect hereof, or based on or in respect of
the Indenture or any indenture supplemental thereto, against any past, present
or future stockholder, employee, officer, director, incorporator, limited or
general partner, as such, of the Issuer or the General Partner or of any
successor, either directly or through the Issuer or the General Partner or any
successor, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.
A-6
<PAGE>
All capitalized terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
THE INDENTURE AND THE SECURITIES, INCLUDING THIS SECURITY, SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Operating Partnership has caused "CUSIP"
numbers to be printed on the Securities of this series as a convenience to the
Holders of such Securities. No representation is made as to the correctness or
accuracy of such CUSIP numbers as printed on the Securities, and reliance may be
placed only on the other identification numbers printed hereon.
A-7
<PAGE>
===============================================================================
ASSIGNMENT FORM
FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto
PLEASE INSERT SOCIAL
SECURITY OR OTHER IDENTIFYING
NUMBER OF ASSIGNEE
- -----------------------------------
............................................
- -----------------------------------
...............................................................................
(Please Print or Typewrite Name and Address including
Zip Code of Assignee)
...............................................................................
the within Security of First Industrial, L.P. and hereby does irrevocably
constitute and appoint
..................................................................... Attorney
to transfer said Security on the books of First Industrial, L.P. with full power
of substitution in the premises.
Dated: .............. ...................................
...................................
NOTICE: The signature to this assignment must correspond with the name as it
appears on the first page of the within Security in every particular, without
alteration or enlargement or any change whatever.
===============================================================================
A-8
Unless this Security is presented by an authorized representative of The
Depository Trust Company ("DTC"), 55 Water Street, New York, New York, to the
Operating Partnership (as defined below) or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the
name of CEDE & CO. or in such other name as is requested by an authorized
representative of DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, CEDE & CO., has an interest herein.
This Security is a Global Security within the meaning set forth in the Indenture
hereinafter referred to and is registered in the name of DTC or a nominee of
DTC. This Security is exchangeable for Securities registered in the name of a
person other than DTC or its nominee only in the limited circumstances described
in the Indenture, and may not be transferred except as a whole by DTC to a
nominee of DTC or another nominee of DTC or by DTC or its nominee to a successor
Depository or its nominee.
Registered No. PRINCIPAL AMOUNT
CUSIP No.: 32055RAE7 $200,000,000
FIRST INDUSTRIAL, L.P.
7.60% NOTE DUE 2028
FIRST INDUSTRIAL, L.P., a limited partnership duly organized and existing
under the laws of the State of Delaware (herein referred to as the "Operating
Partnership" which term shall include any successor entity under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &
CO., or registered assigns, upon presentation, the principal sum of DOLLARS on
July 15, 2028 and to pay interest on the outstanding principal amount thereon
from July 14, 1998, or from the immediately preceding Interest Payment Date to
which interest has been paid or duly provided for, semi-annually in arrears on
January 15 and July 15 in each year, commencing January 15, 1999, at the rate of
7.60% per annum, until the entire principal hereof is paid or made available for
payment. The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person
in whose name this Security is registered at the close of business on the
Regular Record Date for such interest which shall be the December 15 or June 15
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided
for
A-1
<PAGE>
shall forthwith cease to be payable to the Holder on such Regular Record Date,
and may either be paid to the Person in whose name this Security is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of the Securities not less than 10 days prior to such Special Record
Date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture. All payments of principal, premium or
Make-Whole Amount, if any, and interest in respect of this Global Security will
be made by the Operating Partnership in immediately available funds.
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the Certificate of Authentication hereon has been executed by the
Trustee by manual signature of one of its authorized signatories, this Security
shall not be entitled to any benefit under the Indenture, or be valid or
obligatory for any purpose.
A-2
<PAGE>
IN WITNESS WHEREOF, FIRST INDUSTRIAL, L.P. has caused this instrument to be
duly executed under its corporate seal.
Dated:
FIRST INDUSTRIAL, L.P.
By: First Industrial Realty Trust,
Inc., its general partner
By: /s/ Gary H. Heigl
---------------------------------
Name: Gary H. Heigl
Title: Senior Vice President -
Capital Markets
[Seal]
Attest:
/s/ Scott Musil
- --------------------------------
Assistant Secretary
TRUSTEE'S CERTIFICATE OF AUTHENTICATION:
This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.
U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee
Dated: July 14, 1998 By: /s/ H.H. Hall, Jr.
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Authorized Signatory
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REVERSE OF SECURITY
Securities of this series are one of a duly authorized issue of securities
of the Operating Partnership (herein called the "Securities"), issued and to be
issued in one or more series under an Indenture, dated as of May 13, 1997, as
supplemented by Supplemental Indenture No. 5, dated as of July 14, 1998 (as so
supplemented, herein called the "Indenture"), between the Operating Partnership
and U.S. Bank Trust National Association (herein called the "Trustee," which
term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Operating Partnership, the Trustee and the Holders of the Securities and
of the terms upon which the Securities are authenticated and delivered. This
Security is one of the series designated in the first page thereof, limited in
aggregate principal amount to $200,000,000.
Securities of this series may be redeemed at any time at the option of the
Operating Partnership, in whole or in part, at a redemption price equal to the
sum of (i) the principal amount of the Securities being redeemed plus accrued
interest thereon to the Redemption Date and (ii) the Make-Whole Amount, if any,
with respect to such Securities.
Notice of redemption will be given by mail to Holders of Securities, not
less than 30 nor more than 60 days prior to the Redemption Date, all as provided
in the Indenture.
In the event of redemption of this Security in part only, a new Security or
Securities for the unredeemed portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof.
The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness of the Operating Partnership on this Security and (b)
certain restrictive covenants and the related defaults and Events of Default
applicable to the Operating Partnership, in each case, upon compliance by the
Operating Partnership with certain conditions set forth in the Indenture, which
provisions apply to this Security.
If an Event of Default with respect to the Securities shall occur and be
continuing, the principal amount of the Securities may be declared due and
payable in the manner and with the effect provided in the Indenture.
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As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given
written notice to the Trustee of a continuing Event of Default with respect to
the Securities, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any interest on or after the
respective due dates expressed herein.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Operating Partnership and the rights of the Holders of the Securities of each
series to be affected under the Indenture at any time by the Operating
Partnership and the Trustee with the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities of each series of
Securities then Outstanding affected thereby. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Operating
Partnership with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Operating
Partnership, which is absolute and unconditional, to pay the principal of (and
Make-Whole Amount, if any) and interest on this Security at the times, place and
rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is
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registrable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Operating Partnership in
any Place of Payment where the principal of (and Make-Whole Amount, if any) and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Operating Partnership
and the Security Registrar duly executed by the Holder hereof or his attorney
duly authorized in writing, and thereupon one or more new Securities of this
series, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer or
exchange, but the Operating Partnership may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the
Operating Partnership, the Trustee and any agent of the Operating Partnership or
the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security be overdue, and
neither the Operating Partnership, the Trustee nor any such agent shall be
affected by notice to the contrary.
No recourse shall be had for the payment of the principal of, premium or
Make-Whole Amount, if any, or interest in respect of this Security, or for any
claim based hereon, or otherwise in respect hereof, or based on or in respect of
the Indenture or any indenture supplemental thereto, against any past, present
or future stockholder, employee, officer, director, incorporator, limited or
general partner, as such, of the Issuer or the General Partner or of any
successor, either directly or through the Issuer or the General Partner or any
successor, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.
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All capitalized terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
THE INDENTURE AND THE SECURITIES, INCLUDING THIS SECURITY, SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Operating Partnership has caused "CUSIP"
numbers to be printed on the Securities of this series as a convenience to the
Holders of such Securities. No representation is made as to the correctness or
accuracy of such CUSIP numbers as printed on the Securities, and reliance may be
placed only on the other identification numbers printed hereon.
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ASSIGNMENT FORM
FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto
PLEASE INSERT SOCIAL
SECURITY OR OTHER IDENTIFYING
NUMBER OF ASSIGNEE
- ------------------------------------------
.....................................
- ------------------------------------------
...............................................................................
(Please Print or Typewrite Name and Address including
Zip Code of Assignee)
...............................................................................
the within Security of First Industrial, L.P. and hereby does irrevocably
constitute and appoint
...................................................................... Attorney
to transfer said Security on the books of First Industrial, L.P. with full power
of substitution in the premises.
Dated: .............. ...................................
...................................
NOTICE: The signature to this assignment must correspond with the name as it
appears on the first page of the within Security in every particular, without
alteration or enlargement or any change whatever.
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