<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
FORM 10-K/A
Amendment No.1
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
COMMISSION FILE NUMBER 1-9876
WEINGARTEN REALTY INVESTORS
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
TEXAS 74-1464203
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
2600 CITADEL PLAZA DRIVE
P. O. BOX 924133
HOUSTON, TEXAS 77292-4133
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(713) 866-6000
(REGISTRANT'S TELEPHONE NUMBER)
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT.
NAME OF EACH EXCHANGE
TITLE OF EACH CLASS ON WHICH REGISTERED
------------------- -------------------
Common Shares of Beneficial Interest, $0.03 New York Stock Exchange
par value
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. ___
The aggregate market value of the common shares held by non-affiliates
(based upon the closing sale price on the New York Stock Exchange) on February
24, 1995 was approximately $949,240,764. As of February 24, 1995, there were
26,367,799 shares of beneficial interest, $.03 par value, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's Proxy Statement in connection with its Annual
Meeting of Shareholders to be held April 27, 1995 are incorporated by reference
in Part III.
Exhibit Index beginning on Page 33.
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<PAGE>
PART IV**
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) Financial Statements and Financial Statement Schedules:
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
(1)(A) Independent Auditors' Report.............................. 17
(B) Financial Statements
(i) Statements of Consolidated Income for the years
ended December 31, 1994, 1993 and 1992............... 18
(ii) Consolidated Balance Sheets as of December 31, 1994
and 1993............................................. 19
(iii) Statements of Consolidated Cash Flows for the years
ended December 31, 1994, 1993 and 1992.............. 20
(iv) Notes to Consolidated Financial Statements.......... 21
</TABLE>
(2) Financial Statement Schedules:
<TABLE>
<CAPTION>
SCHEDULE PAGE
-------- ----
<S> <C> <C>
II Valuation and Qualifying Accounts....... 38
III Real Estate and Accumulated Depreciation 39
IV Mortgage Loans on Real Estate........... 41
</TABLE>
33
<PAGE>
All other schedules are omitted since the required information is not present
or is not present in amounts sufficient to require submission of the schedule or
because the information required is included in the consolidated financial
statements and notes hereto.
(b) No reports on Form 8-K were filed during the last quarter of the period
covered by this annual report.
(c) Exhibits:
<TABLE>
<C> <S>
3.1 -- Restated Declaration of Trust, with all amendments thereto (filed
as Exhibit 3.1 to the Company's Registration Statement of Form S-3
(No. 33-49206) and incorporated herein by reference).
3.2 -- Bylaws of the Company (filed as Exhibit 3.2 to the Company's
Registration Statement of Form S-3 (No. 33-49206) and incorporated
herein by reference).
10.1+ -- 1988 Share Option Plan of the Company, as amended (filed as
Exhibit 10.1 to the Company's Annual Report on Form 10-K for the
year ended December 31, 1990 and incorporated herein by
reference).
10.2+ -- Weingarten Realty Investors Supplemental Retirement Account Plan,
as Amended and Restated (filed as Exhibit 10.26 to the Company's
Annual Report on Form 10-K for the year ended December 31, 1992,
and incorporated herein by reference.)
10.3 -- 16% Mortgage Bonds Due 1994 of WRI Holdings, Inc. dated December
28, 1984, payable to the Company in the original principal amount
of $3,150,000 (filed as Exhibit 10.8 to the Company's Registration
Statement on Form S-4 (No. 33-19730) and incorporated herein by
reference).
10.3.1*-- First Bonds Renewal and Extension Agreement, effective December
28, 1994, for the 16% Mortgage Bonds of WRI Holdings, Inc.,
payable to the Company in the original principal amount of
$3,150,000.
10.4 -- Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 1994 of WRI Holdings, Inc.
in the original principal amount of $3,150,000 (filed as Exhibit
10.9 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.4.1*-- Supplemental Indenture of Trust, dated February 22, 1995, between
WRI Holdings, Inc. and Texas Commerce Bank National Association
relating to the 16% Mortgage Bonds due December 28, 1994 of WRI
Holdings, Inc. in the original principal amount of $3,150,000.
10.5 -- First Supplemental Indenture of Trust between WRI Holdings, Inc.
and Texas Commerce Trust Company of New York, as Trustee, amending
Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 1994 of WRI Holdings, Inc.
in the original principal amount of $3,150,000 (filed as Exhibit
10.5.1 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1989 and incorporated herein by reference).
10.6 -- 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc., dated December
28, 1984, payable to the Company in the original principal amount
of $16,682,000 (filed as Exhibit 10.10 to the Company's
Registration Statement on Form S-4 (No. 33-19730) and incorporated
herein by reference).
10.7 -- Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $16,682,000 (filed as Exhibit
10.11 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.7.1 -- First Supplemental Indenture of Trust between WRI Holdings, Inc.
and Texas Commerce Trust Company of New York, as Trustee, amending
Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $16,682,000 (filed as Exhibit
10.7.1 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1989 and incorporated herein by reference).
10.8 -- Second Amended Promissory Note, as restated, effective as of
January 1, 1992, executed by WRI Holdings, Inc., pursuant to which
it may borrow up to the principal sum of $20,000,000 from the
Company.
10.9 -- 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc., dated December
28, 1984, payable to the Company in the original principal amount
of $7,000,000 (filed as Exhibit 10.13 to the
</TABLE>
34
<PAGE>
<TABLE>
<C> <S>
Company's Registration Statement on Form S-4 (No. 33-19730) and
incorporated herein by reference).
10.10 -- Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $7,000,000 (filed as Exhibit
10.14 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.10.1 -- First Supplemental Indenture of Trust between WRI Holdings, Inc.
and Texas Commerce Trust Company of New York, as Trustee, amending
Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $7,000,000 (filed as Exhibit
10.10.1 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1989 and incorporated herein by reference).
10.11 -- Agreement Correcting Trust Indenture, dated February 11, 1985,
relating to 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc. in
the original principal amount of $7,000,000 (filed as Exhibit
10.15 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.12 -- Amended and Restated Loan Agreement of $80,000,000 executed
January 22, 1993, between the Company and Texas Commerce Bank
National Association (filed as Exhibit 10.12 to the Company's
Annual Report on Form 10-K for the year ended December 31, 1992
and incorporated herein by reference.)
10.12.1 -- First Amendment to Amended and Restated Loan Agreement,
effective as of January 22, 1993, between the Company and Texas
Commerce Bank National Association, amending facility fee.
10.13 -- First, Second and Waiver and Third Amendment to the Amended and
Restated Loan Agreement of $80,000,000 dated February 5, 1986
between the Company and Texas Commerce Bank National Association
(filed as Exhibit 10.13 to the Company's Annual Report on Form 10-
K for the year ended December 31, 1989 and incorporated herein by
reference).
10.14 -- Not used.
10.15* -- Second Amendment to Note Purchase Agreement, dated July 27, 1994,
amending loan agreement, dated August 6, 1987, as amended on March
31, 1991, between the Company and Life and Accident Insurance
Company for $4,000,000, American General Life Insurance Company of
Delaware for $4,000,000, Republic National Life Insurance Company
for $3,000,000 and American Amicable Life Insurance Company of
Texas for $2,000,000 (filed as Exhibit 10.15.1 to the Company's
Annual Report on Form 10-K for the year ended December 31, 1992
and incorporated herein by reference).
10.16+ -- The Savings and Investment Plan for Employees of the Company, as
amended (filed as Exhibit 4.1 to the Company's Registration
Statement on Form S-8 (No. 33-25581) and incorporated herein by
reference).
10.17+ -- The Fifth Amendment to Savings and Investment Plan for Employees
of Weingarten Realty (filed as Exhibit 4.1.1 to the Company's
Post-Effective Amendment No. 1 to Registration Statement on
Form S-8 (No. 33-25581) and incorporated herein by reference).
10.18 -- Loan Agreement of $20,000,000 (as amended, supplemented and
restated) dated October 1, 1990, between the Company and Barclays
Bank PLC (filed as Exhibit 10.21 to the Company's Annual Report on
Form 10-K for the year ended December 31, 1990 and incorporated
herein by reference).
10.18.1 -- Agreement and Amendment to Loan Agreement dated as of March 31,
1993 between the Company and Barclays Bank PLC, amending certain
provisions of the Loan Agreement of $20,000,000 dated October 1,
1990.
10.19 -- Promissory Note and Line of Credit Loan Agreement in the amount of
$5,000,000, effective as of May 13, 1991, between the Company, as
payee, and Leisure Dynamics, Inc. as maker (filed as Exhibit 10.22
to the Company's Annual Report on Form 10-K for the year ended
December 31, 1991 and incorporated herein by reference).
</TABLE>
35
<PAGE>
<TABLE>
<C> <S>
10.20 -- Promissory Note in the amount of $12,000,000 between the Company,
as payee, and Plaza Construction, Inc., as maker (filed as Exhibit
10.23 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1991 and incorporated herein by reference).
10.20.1*-- Sixth Renewal and Extension of Promissory Note in the amount of
$12,000,000, effective as of December 1, 1994, between the
Company, as payee, and Plaza Construction, Inc., as maker.
10.21 -- Amended and Restated Master Swap Agreement dated as of January 29,
1992, between the Company and Texas Commerce Bank National
Association, (filed as Exhibit 10.24 to the Company's Annual
Report on Form 10-0K for the year ended December 31, 1992 and
incorporated herein by reference).
10.21.1 -- Rate swap Transaction, dated as of May 15, 1992, between the
Company and Texas Commerce Bank National Association, (filed as
Exhibit 10.24.1 to the Company's Annual Report on Form 10-K for
the year ended December 31, 1992 and incorporated herein by
reference).
10.21.2 -- Rate Swap Transaction, dated as of June 24, 1992, between the
Company and Texas Commerce Bank National Association, (filed as
Exhibit 10.24.2 to the Company's Annual Report on Form 10-K for
the year ended December 31, 1992 and incorporated herein by
reference).
10.21.3 -- Rate Swap Transaction, dated as of July 2, 1992, between the
Company and Texas Commerce Bank National Association, (filed as
Exhibit 10.24.3 to the Company's Annual Report on Form 10-K for
the year ended December 31, 1992 and incorporated herein by
reference).
10.22 -- Credit Agreement dated as of November 22, 1994 between the Company
and Texas Commerce Bank National Association as Agent and
individually as a Bank, First Interstate Bank of Texas N.A. and
the Banks defined therein, together with Amendment No. 1 to such
Credit Agreement, dated as of January 31, 1995, (filed as Exhibit
10 to the Company's Registration Statement on Form S-3 dated
(No.33-57659) and incorporated herein by reference).
10.23* -- Revolving Credit Note, dated November 22, 1994, between the
Company and Texas Commerce Bank National Association in the amount
of $110,000,000.
10.24* -- Revolving Credit Note, dated November 22, 1994, between the
Company and First Interstate Bank of Texas, N.A. in the amount of
$40,000,000.
10.25* -- Note Purchase Agreement, dated April 1, 1994, between The Variable
Annuity Life Insurance Company, American General Life Insurance
Company and the Company in the amount of $30,000,000.
10.26+ -- The 1993 Incentive Share Plan of the Company (filed as Exhibit 4.1
to the Company's Registration Statement on Form S-8 (No.33-52437)
and incorporated herein by reference).
11.1 -- Computation of Net Income Per Common and Common Equivalent Share.
12.1 -- Computation of Fixed Charges Ratios.
21.1 -- Subsidiaries of the Registrant.
23.1 -- Consent of Deloitte & Touche LLP.
</TABLE>
---------------
* Filed with this report.
+ Management contract or compensatory plan or arrangement.
** This Amendment No. 1 to Form 10-K amends only Item 14(c)--Exhibits.
36
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Weingarten Realty Investors
By: Stephen C. Richter
---------------------------
Stephen C. Richter,
Vice President and Treasurer
Date: March 23, 1995
37
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Description Page
------ ----------- ------------
<C> <S> <C>
3.1 -- Restated Declaration of Trust, with all amendments thereto (filed
as Exhibit 3.1 to the Company's Registration Statement of Form S-3
(No. 33-49206) and incorporated herein by reference).
3.2 -- Bylaws of the Company (filed as Exhibit 3.2 to the Company's
Registration Statement of Form S-3 (No. 33-49206) and incorporated
herein by reference).
10.1+ -- 1988 Share Option Plan of the Company, as amended (filed as
Exhibit 10.1 to the Company's Annual Report on Form 10-K for the
year ended December 31, 1990 and incorporated herein by
reference).
10.2+ -- Weingarten Realty Investors Supplemental Retirement Account Plan,
as Amended and Restated (filed as Exhibit 10.26 to the Company's
Annual Report on Form 10-K for the year ended December 31, 1992,
and incorporated herein by reference.)
10.3 -- 16% Mortgage Bonds Due 1994 of WRI Holdings, Inc. dated December
28, 1984, payable to the Company in the original principal amount
of $3,150,000 (filed as Exhibit 10.8 to the Company's Registration
Statement on Form S-4 (No. 33-19730) and incorporated herein by
reference).
10.3.1*-- First Bonds Renewal and Extension Agreement, effective December
28, 1994, for the 16% Mortgage Bonds of WRI Holdings, Inc. payable
to the Company in the original principal amount of $3,150,000.
10.4 -- Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 1994 of WRI Holdings, Inc.
in the original principal amount of $3,150,000 (filed as Exhibit
10.9 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.4.1*-- Supplemental Indenture of Trust, dated February 22, 1995, between
WRI Holdings, Inc. and Texas Commerce Bank National Association
relating to the 16% Mortgage Bonds due December 28, 1994 of WRI
Holdings, Inc. in the original principal amount of $3,150,000.
10.5 -- First Supplemental Indenture of Trust between WRI Holdings, Inc.
and Texas Commerce Trust Company of New York, as Trustee, amending
Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 1994 of WRI Holdings, Inc.
in the original principal amount of $3,150,000 (filed as Exhibit
10.5.1 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1989 and incorporated herein by reference).
10.6 -- 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc., dated December
28, 1984, payable to the Company in the original principal amount
of $16,682,000 (filed as Exhibit 10.10 to the Company's
Registration Statement on Form S-4 (No. 33-19730) and incorporated
herein by reference).
10.7 -- Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $16,682,000 (filed as Exhibit
10.11 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.7.1 -- First Supplemental Indenture of Trust between WRI Holdings, Inc.
and Texas Commerce Trust Company of New York, as Trustee, amending
Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $16,682,000 (filed as Exhibit
10.7.1 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1989 and incorporated herein by reference).
10.8 -- Second Amended Promissory Note, as restated, effective as of
January 1, 1992, executed by WRI Holdings, Inc., pursuant to which
it may borrow up to the principal sum of $20,000,000 from the
Company.
10.9 -- 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc., dated December
28, 1984, payable to the Company in the original principal amount
of $7,000,000 (filed as Exhibit 10.13 to the
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Description Page
------ ----------- ------------
<C> <S> <C>
Company's Registration Statement on Form S-4 (No. 33-19730) and
incorporated herein by reference).
10.10 -- Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $7,000,000 (filed as Exhibit
10.14 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.10.1 -- First Supplemental Indenture of Trust between WRI Holdings, Inc.
and Texas Commerce Trust Company of New York, as Trustee, amending
Trust Indenture, dated December 28, 1984, between WRI Holdings,
Inc. and Texas Commerce Bank National Association, as Trustee,
relating to the 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc.
in the original principal amount of $7,000,000 (filed as Exhibit
10.10.1 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1989 and incorporated herein by reference).
10.11 -- Agreement Correcting Trust Indenture, dated February 11, 1985,
relating to 16% Mortgage Bonds Due 2004 of WRI Holdings, Inc. in
the original principal amount of $7,000,000 (filed as Exhibit
10.15 to the Company's Registration Statement on Form S-4 (No. 33-
19730) and incorporated herein by reference).
10.12 -- Amended and Restated Loan Agreement of $80,000,000 executed
January 22, 1993, between the Company and Texas Commerce Bank
National Association (filed as Exhibit 10.12 to the Company's
Annual Report on Form 10-K for the year ended December 31, 1992
and incorporated herein by reference.)
10.12.1 -- First Amendment to Amended and Restated Loan Agreement,
effective as of January 22, 1993, between the Company and Texas
Commerce Bank National Association, amending facility fee.
10.13 -- First, Second and Waiver and Third Amendment to the Amended and
Restated Loan Agreement of $80,000,000 dated February 5, 1986
between the Company and Texas Commerce Bank National Association
(filed as Exhibit 10.13 to the Company's Annual Report on Form 10-
K for the year ended December 31, 1989 and incorporated herein by
reference).
10.14 -- Not used.
10.15* -- Second Amendment to Note Purchase Agreement, dated July 27, 1994,
amending loan agreement, dated August 6, 1987, as amended on March
31, 1991, between the Company and Life and Accident Insurance
Company for $4,000,000, American General Life Insurance Company of
Delaware for $4,000,000, Republic National Life Insurance Company
for $3,000,000 and American Amicable Life Insurance Company of
Texas for $2,000,000 (filed as Exhibit 10.15.1 to the Company's
Annual Report on Form 10-K for the year ended December 31, 1992
and incorporated herein by reference).
10.16+ -- The Savings and Investment Plan for Employees of the Company, as
amended (filed as Exhibit 4.1 to the Company's Registration
Statement on Form S-8 (No. 33-25581) and incorporated herein by
reference).
10.17+ -- The Fifth Amendment to Savings and Investment Plan for Employees
of Weingarten Realty (filed as Exhibit 4.1.1 to the Company's
Post-Effective Amendment No. 1 to Registration Statement on
Form S-8 (No. 33-25581) and incorporated herein by reference).
10.18 -- Loan Agreement of $20,000,000 (as amended, supplemented and
restated) dated October 1, 1990, between the Company and Barclays
Bank PLC (filed as Exhibit 10.21 to the Company's Annual Report on
Form 10-K for the year ended December 31, 1990 and incorporated
herein by reference).
10.18.1 -- Agreement and Amendment to Loan Agreement dated as of March 31,
1993 between the Company and Barclays Bank PLC, amending certain
provisions of the Loan Agreement of $20,000,000 dated October 1,
1990.
10.19 -- Promissory Note and Line of Credit Loan Agreement in the amount of
$5,000,000, effective as of May 13, 1991, between the Company, as
payee, and Leisure Dynamics, Inc. as maker (filed as Exhibit 10.22
to the Company's Annual Report on Form 10-K for the year ended
December 31, 1991 and incorporated herein by reference).
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Description Page
------ ----------- ------------
<C> <S> <C>
10.20 -- Promissory Note in the amount of $12,000,000 between the Company,
as payee, and Plaza Construction, Inc., as maker (filed as Exhibit
10.23 to the Company's Annual Report on Form 10-K for the year
ended December 31, 1991 and incorporated herein by reference).
10.20.1*-- Sixth Renewal and Extension of Promissory Note in the amount of
$12,000,000, effective as of December 1, 1994, between the
Company, as payee, and Plaza Construction, Inc., as maker.
10.21 -- Amended and Restated Master Swap Agreement dated as of January 29,
1992, between the Company and Texas Commerce Bank National
Association, (filed as Exhibit 10.24 to the Company's Annual
Report on Form 10-0K for the year ended December 31, 1992 and
incorporated herein by reference).
10.21.1 -- Rate swap Transaction, dated as of May 15, 1992, between the
Company and Texas Commerce Bank National Association, (filed as
Exhibit 10.24.1 to the Company's Annual Report on Form 10-K for
the year ended December 31, 1992 and incorporated herein by
reference).
10.21.2 -- Rate Swap Transaction, dated as of June 24, 1992, between the
Company and Texas Commerce Bank National Association, (filed as
Exhibit 10.24.2 to the Company's Annual Report on Form 10-K for
the year ended December 31, 1992 and incorporated herein by
reference).
10.21.3 -- Rate Swap Transaction, dated as of July 2, 1992, between the
Company and Texas Commerce Bank National Association, (filed as
Exhibit 10.24.3 to the Company's Annual Report on Form 10-K for
the year ended December 31, 1992 and incorporated herein by
reference).
10.22 -- Credit Agreement dated as of November 22, 1994 between the Company
and Texas Commerce Bank National Association as Agent and
individually as a Bank, First Interstate Bank of Texas N.A. and
the Banks defined therein, together with Amendment No. 1 to such
Credit Agreement, dated as of January 31, 1995, (filed as Exhibit
10 to the Company's Registration on Form S-3 (No. 33-57659) and
incorporated herein by reference).
10.23* -- Revolving Credit Note, dated November 22, 1994, between the
Company and Texas Commerce Bank National Association in the amount
of $110,000,000.
10.24* -- Revolving Credit Note, dated November 22, 1994, between the
Company and First Interstate Bank of Texas, N.A. in the amount of
$40,000,000.
10.25* -- Note Purchase Agreement, dated April 1, 1994, between The Variable
Annuity Life Insurance Company, American General Life Insurance
Company and the Company in the amount of $30,000,000.
10.26+ -- The 1993 Incentive Share Plan of the Company (filed as Exhibit 4.1
to the Company's Registration Statement on Form S-8 (No. 33-52437)
and incorporated herein by reference).
11.1 -- Computation of Net Income Per Common and Common Equivalent Share.
12.1 -- Computation of Fixed Charges Ratios.
21.1 -- Subsidiaries of the Registrant.
23.1 -- Consent of Deloitte & Touche LLP.
</TABLE>
---------------
* Filed with this report.
+ Management contract or compensatory plan or arrangement.
** This Amendment No. 1 to Form 10-K amends only Item 14(c)--Exhibits.
<PAGE>
BONDS RENEWAL AND EXTENSION AGREEMENT
This BONDS RENEWAL AND EXTENSION AGREEMENT (this "Renewal") is executed this
22nd day of February, 1995 (the "Execution Date"), but effective as of December
28, 1994, by and between WRI HOLDINGS, INC. ("Maker"), a Texas corporation, and
WEINGARTEN REALTY INVESTORS ("Payee"), a Texas real estate investment trust.
W I T N E S S S E T H:
WHEREAS, the Payee is the sole legal owner and holder of those certain 16%
Mortgage Bonds Due 1994 (the "Bonds") dated December 28, 1984, in the face
principal sum of THREE MILLION ONE HUNDRED FIFTY THOUSAND and NO/100 DOLLARS
($3,150,000.00) executed by Maker payable to the order of Weingarten Realty,
Inc. ("WRI"), a Texas corporation, payable as therein provided, which Bonds are
secured by (i) that certain Trust Indenture (the "Trust Indenture") dated
December 28, 1984 executed by Maker and Texas Commerce Bank National
Association (the "Trustee"), a national banking association, (ii) that certain
River Pointe Negative Pledge Agreement (the "Negative Pledge") dated December
28, 1984 executed by Maker, Payee, and Plaza Construction, Inc. ("Plaza"), and
(iii) such other documents, instruments, and agreements executed in connection
with, as security for, or as evidence of the obligations evidenced by the Bonds
(collectively, the Trust Indenture, the Negative Pledge, and such other
documents, instruments, and agreements being called the "Security Instruments");
and
WHEREAS, WRI assigned and conveyed all of its property, both real and
personal, to Payee, as evidenced by that certain Master Deed and General
Conveyance, by and between WRI and Payee dated April 5, 1988; and
WHEREAS, the Bonds mature on December 28, 1994, and Maker and Payee now
propose to renew and extend the maturity date of the Bonds and to continue the
liens and priority of the Security Instruments as security for the payment of
the Bonds, as set forth more particularly herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Maker and Payee hereby agree as
follows:
1. The Maker reaffirms its promise to pay to the order of the Payee, at 2600
Citadel Plaza Drive, Suite 300, Houston, Texas 77008, the principal balance due
and owing on the Note, with interest accrued thereon, as provided in the Bonds,
except that the maturity date of the Bonds is hereby renewed and extended to
December 28, 1995, at which time the unpaid principal balance of the Bonds plus
all accrued and unpaid interest thereon shall be due and payable.
<PAGE>
All liens, pledges, and security interests securing the payment of the Bonds,
including, but not limited to, the liens, pledges and security interests granted
in the Trust Indenture and the Negative Pledge, are hereby renewed, extended
and carried forward to secure payment of the Bonds, as hereby amended, and the
Security Instruments are hereby amended to reflect that the maturity date of the
Bonds is December 28, 1995.
2. Maker hereby represents and warrants to Payee that (a) Maker is the sole
legal and beneficial owner of the Trust Estate (as that term is defined in the
Trust Indenture); (b) Maker has the full power and authority to make the
agreements contained in this Renewal without joinder and consent of any other
party; and (c) the execution, delivery and performance of this Renewal will not
contravene or constitute an event which itself or which with the passing of time
or giving of notice or both would constitute a default under any trust deed,
deed of trust, loan agreement, indenture or other agreement to which Maker is a
party or by which Maker or any of its property is bound. Maker hereby agrees to
indemnify and hold harmless Payee against any loss, claim, damage, liability or
expense (including, without limitation, attorneys' fees) incurred as a result of
any representation or warranty made by Maker in this Section 2 proving to be
untrue in any material respect.
3. To the extent that the Bonds are inconsistent with the terms of this
Renewal, the Bonds are hereby modified and amended. Except as modified, renewed
and extended by this Renewal, the Bonds remain unchanged and continue unabated
and in full force and effect as the valid and binding obligation of the Maker.
4. In conjunction with the extension and renewal of the Bonds and the Security
Instruments, Maker hereby extends and renews the liens, pledges, and security
interests as created and granted in the Security Instruments until the
indebtedness secured thereby, as so extended and renewed, has been fully paid,
and agrees that such extension and renewal shall in no manner affect or impair
the Bonds or the liens, pledges, and security interests securing same, and that
said liens, pledges, and security interests shall not in any manner be waived.
The purpose of this Renewal is simply to extend the time of payment of the
obligation evidenced by the Bonds and any indebtedness secured by the Security
Instruments, as modified by this Renewal, and to carry forward all liens,
pledges, and security interests securing the same, which are acknowledged by
Maker to be valid and subsisting.
5. Maker covenants and warrants that the Payee is not in default under the
Bonds Security Instruments, or this Renewal (collectively referred to as the
"Loan Instruments") that there are no defenses, counterclaims or offsets to such
Loan Instruments; and that all of the provisions of the Loan Instruments, as
amended hereby, are in full force and effect.
6. Maker agrees to pay all costs incurred in connection with the execution and
consummation of this Renewal, including but not limited to, all recording costs
and the reasonable fees and expenses of Payee's counsel.
2
<PAGE>
7. If any covenant, condition, or provision herein contained is held to be
invalid by final judgment of any court of competent jurisdiction, the invalidity
of such covenant, condition, or provision shall not in any way affect any other
covenant, condition, or provision herein contained.
8. Payee is the sole owner and holder of the Bonds. Maker and Payee
acknowledge and agree that the outstanding principal balance of the Bonds as of
December 28, 1994 is $3,150,000.00.
9. Payee is an unincorporated trust organized under the Texas Real Estate
Investment Trust Act. Neither the shareholders of Payee, nor its Trust Managers,
officers, employees, or other agents shall be personally, corporately, or
individually liable, in any manner whatsoever, for any debt, act, omission, or
obligation of Payee, and all persons having claims of any kind whatsoever
against Payee shall look solely to the property of Payee for the enforcement of
their rights (whether monetary or nonmonetary) against Payee.
EXECUTED this day and year first above written, but effective for all purposes
as of December 28, 1994.
WRI HOLDINGS, INC.,
a Texas corporation
By: Martin Debrovner
-------------------------------------------
Martin Debrovner
Vice President
"Maker"
WEINGARTEN REALTY INVESTORS, a
Texas real estate investment trust
By: Bill Robertson, Jr.
-------------------------------------------
Bill Robertson, Jr.
Executive Vice President
"Payee"
3
<PAGE>
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on this 22nd day of February, 1995,
by Martin Debrovner, Vice President of WRI HOLDINGS, INC., a Texas corporation,
on behalf of said corporation.
Barbara Kennedy
----------------------------------------------
Notary Public, State of Texas
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on this 22nd day of February, 1995
by Bill Robertson, Jr., Executive Vice President of WEINGARTEN REALTY INVESTORS,
a Texas real estate investment trust, on behalf of said real estate investment
trust.
Barbara Kennedy
----------------------------------------------
Notary Public, State of Texas
4
<PAGE>
SUPPLEMENTAL TRUST INDENTURE
This SUPPLEMENTAL TRUST INDENTURE (this "Supplemental Indenture") is executed
this 22nd day of February, 1995 (the "Execution Date"), but effective as of
December 28, 1994, by and between WRI HOLDINGS, INC. (the "Company"), a Texas
corporation, and TEXAS COMMERCE BANK NATIONAL ASSOCIATION (the "Trustee"), a
national banking association.
WITNESSETH:
WHEREAS, the Company and the Trustee executed that certain Trust Indenture (the
"Trust Indenture") dated December 28, 1984 to secure the performance of the
Company under the terms of that certain 16% Mortgage Bonds Due 1994 (the
"Bonds") executed by the Company payable to the order of Weingarten Realty, Inc.
("WRI") dated December 28, 1984 in the face principal amount of THREE MILLION
ONE HUNDRED FIFTY THOUSAND and NO/100 DOLLARS ($3,150,000.00), payable as
therein provided; and
WHEREAS, WRI assigned and conveyed all of its property, both real and personal,
to Weingarten Realty Investors ("Weingarten"), a Texas real estate investment
trust, as evidenced by that certain Master Deed and General Conveyance, by and
between WRI and Weingarten dated April 5, 1988; and
WHEREAS, the Bonds mature on December 28, 1994, and the Company and Weingarten
have agreed to renew and extend the maturity date of the Bonds and to continue
the liens, pledges, and security interests securing the payment of the Bonds, as
set forth in that certain Bonds Renewal and Extension Agreement dated effective
as of December 28, 1994, executed by the Company and Weingarten, Weingarten
being the sole legal owner and holder of the Bonds; and
WHEREAS, the Company and the Trustee desire to amend and supplement the Trust
Indenture to reflect the renewal and extension of the maturity date of the Bonds
to December 28, l995.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Trustee hereby
agree as follows:
1. Except as otherwise provided in this Supplemental Indenture, all capitalized
terms used in this Supplemental Indenture shall have the meanings ascribed to
those terms in the Trust Indenture.
2. The Company and the Trustee acknowledge that the Company has reaffirmed its
promise to pay to the order of the Payee, at 2600 Citadel Plaza Drive, Suite
300, Houston, Texas
1
<PAGE>
77008, the principal balance due and owing on the Bonds, with interest accrued
thereon, as provided in the Bonds, except that the maturity date of the Bonds
has been renewed and extended to December 28, 1995, at which time the unpaid
principal balance of the Bonds plus all accrued and unpaid interest thereon
shall be due and payable.
All liens, pledges, and security interests securing the Bonds granted under the
terms of the Trust Indenture, are hereby renewed, extended and carried forward
to secure payment of the Bonds, as hereby amended, and the Trust Indenture is
hereby amended to reflect that the maturity date of the Bonds is December 28,
1995.
3. The Company hereby represents and warrants to the Trustee that (a) the
Company is the sole legal and beneficial owner of the Trust Estate; (b) the
Company has the full power and authority to make the agreements contained in
this Supplemental Indenture without joinder and consent of any other party; and
(c) the execution, delivery and performance of this Supplemental Indenture will
not contravene or constitute an event which itself or which with the passing of
time or giving of notice or both would constitute a default under any trust
deed, deed of trust, loan agreement, indenture or other agreement to which the
Company is a party or by which the Company or any of its property is bound. The
Company hereby agrees to indemnify and hold harmless the Trustee against any
loss, claim, damage, liability or expense (including, without limitation,
attorneys' fees) incurred as a result of any representation or warranty made by
the Company in this Section 3 proving to be untrue in any material respect.
4. To the extent that the Trust Indenture is inconsistent with the terms of
this Supplemental Indenture, the Trust Indenture is hereby modified and
amended. Except as modified, renewed and supplemented by this Supplemental
Indenture, the Trust Indenture remains unchanged and continues unabated and in
full force and effect as the valid and binding obligation of the Company.
5. The Company covenants and warrants that the Trustee is not in default under
the Trust Indenture, as supplemented by this Supplemental Indenture
(collectively referred to as the "Indenture"), that there are no defenses,
counterclaims or offsets to the Bonds or the Indenture, and that all of the
provisions of the Bonds and the Indenture are in full force and effect.
6. The Company agrees to pay all costs incurred in connection with the execution
and consummation of this Supplemental Indenture, including but not limited to,
all recording costs and the reasonable fees and expenses of Trustee's counsel.
7. If any covenant, condition, or provision herein contained is held to be
invalid by final judgment of any court of competent jurisdiction, the invalidity
of such covenant, condition, or provision shall not in any way affect any other
covenant, condition, or provision herein contained.
8. The Company acknowledges and agrees that the outstanding principal balance of
the Bonds as of December 28, 1994 is $3,150,000.00.
2
<PAGE>
9. Weingarten joins herein to consent to the amendment and supplement of the
terms of the Trust Indenture as set forth in this Supplemental Indenture and to
acknowledge and represent that Weingarten is the sole owner and holder of the
Bonds. Weingarten is an unincorporated trust organized under the Texas Real
Estate Investment Trust Act. Neither the shareholders of Weingarten, nor its
Trust Managers, officers, employees, or other agents shall be personally,
corporately, or individually liable, in any manner whatsoever, for any debt,
act, omission, or obligation of Weingarten, and all persons having claims of any
kind whatsoever against Weingarten shall look solely to the property of
Weingarten for the enforcement of their rights (whether monetary or nonmonetary)
against Weingarten.
EXECUTED this day and year first above written, but effective for all purposes
as of December 28, 1994.
WRI HOLDINGS, INC.
[SIGNATURE OF MARTIN DEBROVNER APPEARS HERE]
By:
--------------------------------
Martin Debrovner
Vice President
"Company"
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
[SIGNATURE OF WAYNE MENTZ APPEARS HERE]
By:
---------------------------------
Wayne Mentz
Assistant Vice President
and Trust Officer
"Trustee"
WEINGARTEN REALTY INVESTORS
[SIGNATURE OF BILL ROBERTSON, JR. APPEARS HERE]
By:
----------------------------------
Bill Robertson, Jr.
Executive Vice President
"Weingarten"
3
<PAGE>
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on this 22nd day of February, 1995,
by Martin Debrovner, Vice President of WRI HOLDINGS, INC., a Texas corporation,
on behalf of said corporation.
[SEAL OF BARBARA KENNEDY [SIGNATURE OF BARBARA KENNEDY APPEARS HERE]
APPEARS HERE] --------------------------------------------
Notary Public, State of Texas
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on this day of February, 1995 by
Wayne Mentz, Assistant Vice President of TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, a national banking association, on behalf of said national banking
association.
------------------------------------
Notary Public, State of Texas
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on this 22nd day of February, 1995 by
Bill Robertson, Jr., Executive Vice President of WEINGARTEN REALTY INVESTORS, a
Texas real estate investment trust, on behalf of said real estate investment
trust.
[SEAL OF BARBARA KENNEDY [SIGNATURE OF BARBARA KENNEDY APPEARS HERE]
APPEARS HERE] --------------------------------------------
Notary Public, State of Texas
4
<PAGE>
AMENDMENT NO. 2 TO NOTE PURCHASE AGREEMENT
THIS AMENDMENT NO. 2 TO NOTE PURCHASE AGREEMENT (this "Amendment") is entered
into as of July 27, 1994, between Weingarten Realty Investors, a Texas real
estate investment trust (the "Trust"), and The Variable Annuity Life Insurance
Company ("VALIC"), American General Life and Accident Insurance Company ("AGLA")
and American General Life Insurance Company ("AGL") (VALIC, AGLA and AGL are
collectively referred to herein as the "Holders").
WITNESSETH:
WHEREAS, Weingarten Realty, Inc., a Texas corporation (the "Company"), VALIC,
AGLA, American General Life Insurance Company of Delaware ("AGLICD"), Republic
National Life Insurance Company ("RNLIC") and American-Amicable Life Insurance
Company ("AALIC") entered into a Note Purchase Agreement dated as of August 6,
1987 (as amended by that certain Amendment to Note Purchase Agreement dated to
be effective as of March 31, 1991, among the Trust and the Holders, the
"Agreement"), which provides for, among other things, the issuance and sale of
up to $35,000,000 in aggregate principal of Notes (as defined in the Agreement);
WHEREAS, the Trust has assumed the obligations of the Company under the
Agreement pursuant to an Assumption Agreement dated as of April 5, 1988, among
the Company, the Trust and the holders of Notes whose signatures are affixed
thereto;
WHEREAS, AGL is the successor in interest to AALIC and RNLIC, and AGLA is the
successor in interest to AGLICD;
WHEREAS, the Holders together hold all of the Notes outstanding as of the date
hereof;
WHEREAS, the parties hereto desire to amend the Agreement as hereinafter set
forth;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:
(S)1. Terms used in this Amendment that are not otherwise defined herein shall
have the meanings given to such terms in the Agreement.
(S)2. Section 7 of the Agreement is hereby amended by inserting the following
sentence immediately after the heading of such section:
The Company may, at its option, prepay the Notes (i) prior to the August 6,
1998, pursuant to Section 7.2(a) and (ii) on or after August 6, 1998, pursuant
to Section 7.1. The Company may be required to prepay the Notes from time to
time pursuant to Sections 7.2(b)-(d).
1
<PAGE>
(S)3. Section 7.2(a) of the Agreement is hereby amended and restated in its
entirety to read as follows:
(a) The Company may, at its option, subject to the restrictions contained in
the immediately succeeding sentence and after having timely given the notice
required by Section 7.3, prepay all or any portion of the aggregate unpaid
principal amount of the outstanding Notes, pro rata, at any time prior to August
6, 1998, at a price equal to the sum of (i) the aggregate unpaid principal
amount of such Notes to be prepaid together with accrued and unpaid interest on
each principal amount so prepaid to the date specified in the notice for such
prepayment plus (ii) the Optional Prepayment Premium for such prepayment. Each
prepayment pursuant to this Section 7.2(a) of less than the entire aggregate
unpaid principal amount of the outstanding Notes (i) shall be in an amount not
less than $1,000,000 and shall be in an integral multiple of $1,000,000 and (ii)
the aggregate unpaid principal amount of such Notes to be prepaid and the
Optional Prepayment Premium that is payable as a result of such prepayment shall
be allocated among the outstanding Notes in proportion, as nearly as
practicable, to the respective unpaid principal amounts of those Notes, with
adjustments, to the extent practicable, to compensate for any prior prepayments
not made exactly in that proportion.
(S)4. The penultimate sentence of Section 7.3 of the Agreement is hereby
amended to read as follows:
In the event that prepayment is to be made pursuant to Section 7.2(a), the
Company shall further specify the Optional Prepayment Premium applicable to any
Notes to be so prepaid together with all calculations relevant thereto.
(S)5. Section 9.1 of the Agreement is hereby amended and restated in its
entirety to read as follows:
The Company will not at any time create, incur or assume, or otherwise become
or remain directly liable with respect to, any Short Term Debt in excess of the
greater of (i) $200,000,000 or (ii) 33% of Total Debt; provided, however, that
for purposes of the following test, Short Term Debt shall be reduced by (i)
floating rate Investments of equivalent amount owned by the Company and its
Consolidated Subsidiaries provided such Investments are permitted by Section
9.3, and (ii) the Market Value as of the date of determination, as determined
in good faith by the Chief Financial Officer of the Company, of U.S.
Governmental Securities that are owned by the Company and its Consolidated
Subsidiaries provided such Investments are permitted by Section 9.3.
(S)6. The definition "Consolidated Distributable Cash Flow Available for
Restricted Payments" contained in Section 15.1 of the Agreement is hereby
amended and restated in its entirety to read as follows:
2
<PAGE>
"Consolidated Distributable Cash Flow Available for Restricted Payments: An
amount equal to (i) the sum of (x) 100% of the aggregate Consolidated
Distributable Cash Flow for the Calculation Period plus (y) 100% of the
aggregate gains on the sale or disposition of properties of the Company and the
Consolidated Subsidiaries for the Calculation Period plus (z) 100% of the
aggregate extraordinary gains (as defined by GAAP) of the Company and the
Consolidated Subsidiaries for the Calculation Period (other than gains covered
by the immediately preceding clause (y)), minus (ii) the aggregate amount of all
Restricted Payments made or declared after December 31, 1985."
(S)7. Section 15.1 of the Agreement is hereby amended by adding thereto the
following defined terms:
"Market Value: The value of the interest of the Company in any U.S. Government
Securities at any date that is the most probable price, as of that date, in cash
or in terms equivalent to cash, for which that interest should sell after
reasonable exposure in a competitive market under the conditions required for a
fair sale, with the buyer and seller each acting prudently, knowledgeably and in
their respective self interests, and assuming that neither is under undue
duress."
"Optional Prepayment Premium: The Optional Prepayment Premium, for any
prepayment of all or any portion of the aggregate principal amount of the
outstanding Notes, means the positive remainder (if any) obtained by
subtracting:
(a) the outstanding principal amount of the Notes to be prepaid on such date,
from
(b) the lowest of
(i) the sum of the present values, determined at the date fixed for such
prepayment, of (A) an amount equal to the outstanding principal amount of the
Notes to be prepaid on such date multiplied by 102% (assuming that the product
so obtained would have been due and payable on August 6, 1998), plus (B) all
unaccrued unpaid interest on such principal amount from the date of
determination of such Optional Prepayment Premium through and including August
6, 1998, computed at a discount rate equal to the sum of (x) the yield that
would be imputed (by linear interpolation) from the yields of United States
Treasury Notes maturing as closely as practicable to August 6, 1998, plus (y) 50
basis points,
(ii) the sum of the present values, determined at the date fixed for such
prepayment, of (A) an amount equal
3
<PAGE>
to the outstanding principal amount of the Notes to be prepaid on such date
multiplied by 101% (assuming that the product so obtained would have been due
and payable on August 6, 1999), plus (B) all unaccrued unpaid interest on such
principal amount from the date of determination of such Optional Prepayment
Premium through and including August 6, 1999, computed at a discount rate equal
to the sum of (x) the yield that would be imputed (by linear interpolation) from
the yields of United States Treasury Notes maturing as closely as practicable to
August 6, 1999, plus (y) 50 basis points, and
(iii) the sum of the present values, determined at the date fixed for such
prepayment, of (A) the outstanding principal amount of the Notes to be prepaid
on such date (assuming that such principal amount would have been due and
payable on August 6, 2000), plus (B) all unaccrued unpaid interest on such
principal amount from the date of determination of such Optional Prepayment
Premium through and including August 6, 2000, computed at a discount rate equal
to the sum of (x) the yield that would be imputed (by linear interpolation) from
the yields of United States Treasury Notes maturing as closely as practicable to
August 6, 2000, plus (y) 50 basis points;
provided that for purposes of this definition, such present values shall be
computed to any date fixed for prepayment in accordance with generally accepted
financial practice based upon monthly compounding and such yields shall be
determined by reference to (a) the display designated as "Page 678" on the
Telerate Access Service (or such other display as may replace Page 678 on the
Telerate Access Service) for actively traded United States Treasury securities
adjusted to constant maturities, (b) if the Telerate Access Service shall have
ceased to exist or if yields are otherwise not available or ascertainable by
reference to such service, the statistical release designated "H.15(519)" or
any successor publication that is published weekly by the Federal Reserve System
and that establishes yields on actively traded U.S. Government Securities
adjusted to constant maturities, or (c) if the Telerate Access Service shall
have ceased to exist and such statistical release shall have ceased to be
published, such other reasonably comparable index that shall be designated by
the holder or holders of a majority in aggregate principal amount of the then
outstanding Notes."
"U.S. Government Securities: Securities that are (i) direct obligations of the
United States of America for the payment of which its full faith and credit is
pledged; (ii) obligations of a Person controlled or supervised by and acting as
an agency or instrumentality of the United States of America pursuant to
authority granted by the Congress of the
4
<PAGE>
United States of America the payment of which is unconditionally guaranteed as a
full faith and credit obligation by the United States of America, which, in
either case under clauses (i) or (ii) above, are not callable or redeemable at
the option of the issuer thereof; or (iii) depository receipts issued by a bank
or trust company as custodian with respect to any such United States of America
government obligations referred to in clause (i) or (ii) of this definition or a
specific payment of interest on or principal of any such United States of
America government obligation held by such custodian for the account of the
holder of a depository receipt; provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the United States of America government obligation or the specific
payment of interest on or principal of the United States of America government
obligation evidenced by such depository receipt."
(S)8. By its execution and delivery of this Amendment, the Trust represents
and warrants that, as of the date hereof and after giving effect to the
amendments contemplated by the foregoing Sections 2 through 7, no event has
occurred and is continuing that constitutes an Event of Default or Potential
Event of Default.
(S)9. This Amendment shall become effective when, and only when, the Trust and
each of the Holders shall have executed a counterpart of this Amendment.
(S)10. Upon effectiveness of this Amendment, each reference in the Agreement,
to "this Agreement", "hereunder", "herein" or words of like import shall be a
reference to the Agreement, as amended by this Amendment.
(S)11. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same instrument.
(S)12. Except as expressly set forth herein, the terms and provisions of the
Agreement shall continue in full force and effect.
(S)13. This Amendment shall be construed and enforced in accordance with and
governed by the laws of the State of Texas.
5
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the
date first above written.
WEINGARTEN REALTY INVESTORS
/s/ Joseph W. Robertson, Jr.
By:____________________________
Name: Joseph W. Robertson, Jr.
Title: Executive Vice President
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY
(As an Original Note-holder and as the Successor in
Interest to American General Life Insurance Company
of Delaware), and
AMERICAN GENERAL LIFE INSURANCE COMPANY (As the
Successor in Interest to each of Republic National
Life Insurance Company and American-Amicable Life
Insurance Company)
/s/ Julia S. Tucker
By______________________________
Name: Julia S. Tucker
Title: Investment Officer
6
<PAGE>
SIXTH RENEWAL AND EXTENSION AGREEMENT
-------------------------------------
THE STATE OF TEXAS (S)
(S)
COUNTY OF MONTGOMERY (S)
This SIXTH RENEWAL AND EXTENSION AGREEMENT (the "Sixth Renewal") is executed
this 22nd day of February, 1995 (the "Execution Date"), but effective as of
December 1, 1994, by and between PLAZA CONSTRUCTION, INC. ("Maker"), a Texas
corporation, and WEINGARTEN REALTY INVESTORS ("Payee"), a Texas real estate
investment trust.
W I T N E S S E T H:
-------------------
WHEREAS, the Payee is the present legal owner and holder of that certain
Promissory Note (the "Original Note") dated November 29, 1982, in the original
principal sum of Twelve Million and No/100 Dollars ($12,000,000.00) executed by
River Pointe Venture I ("River Pointe"), a Texas joint venture, payable to the
order of Weingarten Realty, Inc. ("WRI"), a Texas corporation, payable as
therein provided, which Note is secured by (i) a Deed of Trust and Security
Agreement (the "Original Deed of Trust") dated November 29, 1982, executed by
River Pointe to Melvin A. Dow, Trustee, filed under Clerk's File No. 8254156 and
under Film Code Reference No. 171-01-0638 in the Real Property Records of
Montgomery County Texas, covering and affecting certain property situated in
Montgomery County, Texas, more particularly described therein (the "Property"),
and (ii) any and all other liens, security instruments, and documents executed
by River Pointe and/or Maker, securing or governing the payment of the Original
Note including, but not limited to, that certain Loan Agreement ("Original Loan
Agreement") dated November 29, 1982 executed by WRI and River Pointe; and
WHEREAS, by that certain River Pointe Venture I Assignment of Interest and
Dissolution, dated October 16, 1987, filed on October l9, 1987, under Clerk's
File No. 8747284, in the Real Property Records of Montgomery County, Texas,
River Pointe was dissolved and Maker assumed all of the debts and obligations of
River Pointe, and obtained ownership of all of the assets of River Pointe,
including, but not limited to, the Property; and
WHEREAS, WRI assigned and conveyed all of its property, both real and
personal, to Payee, as evidenced by that certain Master Deed and General
Conveyance, by and between WRI and Payee, a counterpart of which was filed
under Clerk's File No. 8815730 and under Film Code Reference No. 520-01-0704, in
the Real Property Records of Montgomery County, Texas; and
WHEREAS, by instrument entitled Renewal and Extension Agreement (the "First
Renewal") entered into as of November l, 1989, executed by Maker and Payee, the
Original
<PAGE>
Note, Original Deed of Trust, Original Loan Agreement, and all other documents
evidencing, governing, or securing the payment of the Note were renewed and
extended; and
WHEREAS, by instrument entitled Second Renewal and Extension Agreement (the
"Second Renewal") dated March 12, l991, but effective as of December 1, 1990,
filed on March 21, 1991, under Clerk's File No. 9111519 and under Film Code
Reference No. ###-##-#### in the Official Public Records of Real Property of
Montgomery County, Texas, Maker and Payee further modified and extended the
Original Note, Original Deed of Trust, Original Loan Agreement, and all other
documents evidencing, governing or securing payment of the Original Note; and
WHEREAS, by instrument entitled Third Renewal and Extension Agreement (the
"Third Renewal") dated February 28, 1992, but effective as of December l, 1991,
filed on May 14, 1992, under Clerk's File No. 9222962, and under Film Code
Reference No. ###-##-#### in the Official Public Records of Real Property of
Montgomery County, Texas, Maker and Payee further modified and extended the
Original Note, Original Deed of Trust, Original Loan Agreement, and all other
documents evidencing, governing or securing payment of the Original Note; and
WHEREAS, by instrument entitled Fourth Renewal and Extension Agreement (the
"Fourth Renewal") dated February l9, 1993, but effective as of December 1, 1992,
Maker and Payee further modified and extended the Original Note, Original Deed
of Trust, Original Loan Agreement, and all other documents evidencing, governing
or securing payment of the Original Note; and
WHEREAS, by instrument entitled Fifth Renewal and Extension Agreement (the
"Fifth Renewal") dated March 9, 1994, but effective as of December l, 1993,
filed on March 18, 1994 under Clerk's File No. 9415326 and under Film Code
Reference No. ###-##-#### in the Official Public Records of Real Property of
Montgomery County, Texas, Maker and Payee further modified and extended the
Original Note, Original Deed of Trust, Original Loan Agreement, and all other
documents evidencing, governing, or securing payment of the Original Note. The
Original Note, the Original Deed of Trust, and Original Loan Agreement, together
with any and all other liens, security interests, and documents evidencing,
securing or governing payment of the Original Note, as modified by the First
Renewal, Second Renewal, Third Renewal, Fourth Renewal, and Fifth Renewal are
herein referred to as the "Note" and "Security Instruments," respectively; and
WHEREAS, Maker and Payee now propose to modify the Note in certain respects
and to continue the lien and priority of the Security Instruments as security
for the payment of the Note, as set forth more particularly herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Maker and Payee hereby agree as
follows:
2
<PAGE>
l. The Maker reaffirms its promise to pay to the order of the Payee, at 2600
Citadel Plaza Drive, Suite 300, Houston, Texas 77008, the principal balance due
and owing on the Note, with accrued interest thereon, as provided in the Note,
except that the maturity date of the Note is hereby amended and extended until
December l, 1995, at which time the unpaid principal balance of the Note,
together with all accrued but unpaid interest, shall be due and payable.
All liens securing the Note, including, but not limited to, the lien created
by the Original Deed of Trust, are hereby renewed, extended and carried forward
to secure payment of the Note, as hereby amended, and the Original Deed of Trust
is hereby amended to reflect that the maturity date of the Note is December l,
1995. All other Security Instruments including, but not limited to, the Original
Loan Agreement, are likewise hereby modified and amended to reflect the renewal
and extension of the maturity date of the Note to December l, l995.
2. Maker hereby represents and warrants to Payee that (a) Maker is the sole
legal and beneficial owner of the Property; (b) Maker has the full power and
authority to make the agreements contained in this Sixth Renewal without joinder
and consent of any other party; and (c) the execution, delivery and performance
of this Sixth Renewal will not contravene or constitute an event which itself or
which with the passing of time or giving of notice or both would constitute a
default under any trust deed, deed of trust, loan agreement, indenture or other
agreement to which Maker is a party or by which Maker or any of its property is
bound. Maker hereby agrees to indemnify and hold harmless Payee against any
loss, claim, damage, liability or expense (including, without limitation,
attorneys' fees) incurred as a result of any representation or warranty made by
Maker in this Section 2 proving to be untrue in any material respect.
3. To the extent that the Note is inconsistent with the terms of this Sixth
Renewal, the Note is hereby modified and amended. Except as modified, renewed
and extended by this Sixth Renewal, the Note and the Security Instruments remain
unchanged and continue unabated and in full force and effect as the valid and
binding obligation of the Maker.
4. In conjunction with the extension, renewal and modification of the Note and
the Security Instruments, Maker hereby extends and renews the liens, security
interests, and assignments created and granted in the Security Instruments until
the indebtedness secured thereby, as so extended, renewed and modified, has been
fully paid, and agrees that such extension, renewal and modification shall in no
manner affect or impair the Note, the liens or security interests securing same,
and that said liens, security interests, and assignments shall not in any manner
be waived. The purpose of this Sixth Renewal is simply to extend the time of
payment of the loan evidenced by the Note and any indebtedness secured by the
Security Instruments, as modified by this Sixth Renewal, and to carry forward
all liens and security interests securing the same, which are acknowledged by
Maker to be valid and subsisting.
5. Maker covenants and warrants that the Payee is not in default under the
Note or Security Instruments, each as modified by this Sixth Renewal
(collectively referred to as the "Loan Instruments") that there are no defenses,
counterclaims or offsets to such Loan Instruments; and that all of the
provisions of the Loan Instruments, as amended hereby, are in full force and
effect.
3
<PAGE>
6. Maker agrees to pay all costs incurred in connection with the execution
and consummation of this Sixth Renewal, including but not limited to, all
recording costs, the premium for an endorsement to the Mortgagee Policy of Title
Insurance insuring the validity and priority of the Original Deed of Trust in
form satisfactory to Payee, and the reasonable fees and expenses of Payee's
counsel.
7. If any covenant, condition, or provision herein contained is held to be
invalid by final judgment of any court of competent jurisdiction, the invalidity
of such covenant, condition, or provision shall not in any way affect any other
covenant, condition, or provision herein contained.
8. Payee is an unincorporated trust organized under the Texas Real Estate
Investment Trust Act. Neither the shareholders of Payee, nor its Trust Managers,
officers, employees, or other agents shall be personally, corporately, or
individually liable, in any manner whatsoever, for any debt, act, omission, or
obligation of Payee, and all persons having claims of any kind whatsoever
against Payee shall look solely to the property of Payee for the enforcement of
their rights (whether monetary or nonmonetary) against Payee.
EXECUTED this day and year first above written, but effective for all purposes
as of December 1, 1994.
PLAZA CONSTRUCTION, INC.,
a Texas corporation
By: Martin Debrovner
------------------------------------------
Martin Debrovner
Vice President
"Maker"
WEINGARTEN REALTY INVESTORS, a
Texas real estate investment trust
By: Bill Robertson, Jr.
------------------------------------------
Bill Robertson, Jr.
Executive Vice President
"Payee"
4
<PAGE>
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on this 22nd day of February, 1995,
by Martin Debrovner, Vice President of PLAZA CONSTRUCTION, INC., a Texas
corporation, on behalf of said corporation.
Barbara Kennedy
---------------------------------------------
Notary Public, State of Texas
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on this 22nd day of February, 1995
by Bill Robertson, Jr., Executive Vice President of WEINGARTEN REALTY INVESTORS,
a Texas real estate investment trust, on behalf of said real estate investment
trust.
Barbara Kennedy
---------------------------------------------
Notary Public, State of Texas
Record and return to:
Janet J. Brown
Weingarten Realty Management Company
P. O. Box 924133
Houston, Texas 77292-4133
5
<PAGE>
WEINGARTEN REALTY INVESTORS
REVOLVING CREDIT NOTE
$110,000,000 November 22, 1994
FOR VALUE RECEIVED, the undersigned, Weingarten Realty Investors, a Texas real
estate investment trust, hereby promises to pay to the order of TEXAS COMMERCE
BANK NATIONAL ASSOCIATION (the "Bank") the principal sum of ONE HUNDRED TEN
MILLION AND 00/100 DOLLARS ($110,000,000) or the aggregate principal amount of
Advances made pursuant to the Credit Agreement hereinafter mentioned and
outstanding as of the maturity hereof, whether by acceleration or otherwise,
whichever may be the lesser, on or before the Termination Date, together with
interest on any and all amounts remaining unpaid hereon from time to time from
the date hereof until maturity, payable as described in the Credit Agreement,
and at maturity, in the manner and at the rates per annum as set forth in the
Credit Agreement dated as of even date herewith, between the undersigned, the
Bank in its own capacity and as Agent, and the other banks which are party
thereto, as amended from time to time (the "Credit Agreement"). Capitalized
terms used but not otherwise defined herein shall have the same respective
meanings ascribed to them as in the Credit Agreement.
If any payment of principal or interest on this Note shall become due on a day
which is not a Business Day, such payment shall be made on the next succeeding
business day, and such extension of time shall in such case be considered in
computing interest in connection with such payment.
Payments of both principal and interest are to be made in immediately
available funds at the office of the Agent, 712 Main Street, Houston, Texas, or
such other place as the holder shall designate in writing to the maker.
If default is made in the payment of this Note and it is placed in the hands
of an attorney for collection, or collected through bankruptcy proceedings, or
if suit is brought on this Note, the maker agrees to pay reasonable attorneys'
fees in addition to all other amounts owing hereunder.
This Note is the Note provided for in, and is entitled to the benefits of, the
Credit Agreement, which, among other things, contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events,
for prepayments of principal hereof prior to the maturity hereof upon terms and
conditions therein specified, and to the effect that no provision of the Credit
Agreement or this vote shall require the payment or permit the collection of
interest in excess of the Highest Lawful Rate. It is contemplated that
1
<PAGE>
by reason of prepaymcnts hereon there may be times when no indebtedness is owing
hereunder; but notwithstanding such occurrences this Note shall remain valid and
shall be in full force and effect as to Advances made pursuant to the Credit
Agreement subsequent to each such occurrence.
Except as expressly provided in the Credit Agreement, the maker and any and
all endorsers, guarantors and sureties severally waive grace, notice of intent
to accelerate, notice of acceleration, demand, presentment for payment, notice
of dishonor or default, protest and notice of protest and diligence in
collecting and bringing of suit against any party hereto, and agree to all
renewals, extensions or partial payments hereon and to any release or
substitution of security herefor, in whole or in part, with or without notice,
before or after maturity.
With respect to the incurrence of certain liabilities hereunder and the making
of certain agreements by the Borrower as herein stated, such incurrence of
liabilities and such agreements shall be binding upon the Borrower only as a
trust formed under the Texas Real Estate Investment Trust Act pursuant to that
certain Restated Declaration of Trust dated March 23, 1988 (as it is amended
from time to time), and only upon the assets of such Borrower. No Trust Manager
or officer or other holder of any beneficial interest in the Borrower shall
have any personal liability for the payment of any indebtedness or other
liabilities incurred by the Borrower hereunder or for the performance of any
agreements made by the Borrower hereunder, nor for any other act, omission or
obligation incurred by the Borrower or by the Trust Managers except, in the case
of a Trust Manager, any liability arising from his own wilful misfeasance or
malfeasance or gross negligence.
WEINGARTEN REALTY INVESTORS
By: [SIGNATURE OF JOSEPH WILLIAM ROBERTSON APPEARS HERE]
Name: Joseph William Robertson, Jr.
Title: Executive Vice President
2
<PAGE>
WEINGARTEN REALTY INVESTORS
REVOLVING CREDIT NOTE
$40,000,000 November 22, 1994
FOR VALUE RECEIVED, the undersigned, Weingarten Realty Investors, A Texas real
estate investment trust, hereby promises to pay to the order of FIRST INTERSTATE
BANK OF TEXAS, N.A. (the "Bank") the principal sum of FORTY MILLION AND 00/100
DOLLARS ($40,000,000) or the aggregate principal amount of Advances made
pursuant to the Credit Agreement hereinafter mentioned and outstanding as of the
maturity hereof, whether by acceleration or otherwise, whichever may be the
lesser, on or before the Termination Date, together with interest on any and all
amounts remaining unpaid l1ereon from time to time from the date hereof until
maturity, payable as described in the Credit Agreement, and at maturity, in the
manner and at the rates per annum as set forth in the Credit Agreement dated as
of even date herewith, between the undersigned, the Bank Texas Commerce Bank
National Association. individually and as Agent, and the other banks which are
party thereto, as amended from time to time (the "Credit Agreement").
Capitalized terms used but not otherwise defined herein shall have the same
respective meanings ascribed to them as in the Credit Agreement.
If any payment of principal or interest on this Note shall become due on a day
which is not a Business Day, such payment shall be made on the next succeeding
business day, and such extension of time shall in such case be considered in
computing interest in connection with such payment.
Payments of both principal and interest are to be made in immediately
available funds at the office of the Agent, 712 Main Street, Houston, Texas, or
such other place as the holder shall designate in writing to the maker.
If default is made in the payment of this Note and it is placed in the hands
of an attorney for collection, or collected through bankruptcy proceedings, or
if suit is brought on this Note, the maker agrees to pay reasonable attorneys'
fees in addition to all other amounts owing hereunder.
This Note is the Note provided for in, and is entitled to the benefits of, the
Credit Agreement, which among other things, contains provisions for acceleration
of the maturity hereof upon the happening of certain stated events, for
prepayments of principal hereof prior to the maturity hereof upon terms and
conditions therein specified, and to the effect that no provision of the Credit
Agreement or this Note shall require the payment or permit the collection of
interest in excess of the Highest Lawful Rate. It is contemplated that
1
<PAGE>
by reason of prepayments hereon there may be times when no indebtedness is owing
hereunder; but notwithstanding such occurrences this Note shall remain valid
and shall be in full force and effect as to Advances made pursuant to the
Credit Agreement subsequent to each such occurrence.
Except as expressly provided in the Credit Agreement, the maker and any and
all endorsers, guarantors and sureties severally waive grace, notice of intent
to accelerate, notice of acceleration, demand, presentment for payment, notice
of dishonor or default, protest and notice of protest and diligence in
collecting and bringing of suit against any party hereto, and agree to all
renewals, extensions or partial payments hereon and to any release or
substitution of security herefor, in whole or in part, with or without notice,
before or after maturity.
With respect to the incurrence of certain liabilities hereunder and the making
of certain agreements by the Borrower as herein stated, such incurrence of
liabilities and such agreements shall be binding upon the Borrower only as a
trust formed under the Texas Real Estate Investment Trust Act pursuant to that
certain Restated Declaration of Trust dated March 23, 1988 (as it is amended
from time to time), and only upon the assets of such Borrower. No Trust Manager
or officer or other holder of any beneficial interest in the Borrower shall have
any personal liability for the payment of any indebtedness or other liabilities
incurred by the Borrower hereunder or for the performance of any agreements made
by the Borrower hereunder, nor for any other act, omission or obligation
incurred by the Borrower or by the Trust Managers except, in the case of a Trust
Manager, any liability arising from his own wilful misfeasance or malfeasance or
gross negligence.
WEINGARTEN REALTY INVESTORS
By: /s/ Joseph William Robertson, Jr.
---------------------------------
Name: Joseph William Robertson, Jr.
Title: Executive Vice President
2
<PAGE>
================================================================================
WEINGARTEN REALTY INVESTORS
$30,000,000
Variable Issue Senior Secured Notes
--------------------------------------------------------------------------------
Note Purchase Agreement
--------------------------------------------------------------------------------
April 1, 1994
================================================================================
<PAGE>
Table of Contents
<TABLE>
<CAPTION>
<S> <C>
(S)1 The Notes................................................................................... 1
(a) Authorization of Notes.................................................................. 1
(b) Limitations on Aggregate Principal Amount............................................... 1
(c) Designations of Series of Notes......................................................... 1
(d) Maturity Dates.......................................................................... 1
(e) Interest Rates.......................................................................... 1
(f) Payment of Interest Accruing During the
Funding Period.......................................................................... 2
(g) Interest on Past Due Interest Accruing During the
Funding Period.......................................................................... 2
(h) Payment of Principal and Interest in Monthly
Installments Following the Termination of the
Funding Period.......................................................................... 2
(i) Application of Monthly Installments..................................................... 2
(j) Due Dates of Monthly Installments....................................................... 2
(k) Amounts of Monthly Installments......................................................... 2
(l) Interest on Past Due Monthly Installments............................................... 3
(m) Dating of Notes......................................................................... 3
(n) Form of Notes........................................................................... 3
(o) Execution of Notes...................................................................... 3
(p) Numbering of Notes...................................................................... 3
(S)2 The Closing................................................................................. 3
(a) Time and Place of the Closing........................................................... 3
(b) Execution and Delivery of the Amendment................................................. 3
(S)3 The Fundings................................................................................ 4
(a) Procedure for Establishing Funding Dates................................................ 4
(b) One Series of Notes on Any Funding Date; Uniformity
of Notes of a Particular Series......................................................... 4
(c) Termination of Funding Period........................................................... 4
(d) Determination of Principal Amount of Notes to be
Purchased by Each Purchaser............................................................. 4
(e) Sale and Purchase of Notes at Each Funding.............................................. 5
(f) Failure to Deliver; Non-Fulfillment of Conditions
to Funding.............................................................................. 5
(g) Payment of Commitment Fee............................................................... 5
(h) Interest on Past Due Commitment Fee..................................................... 6
(S)4 Conditions to the Closing................................................................... 6
4.1 Representations and Warranties True as of
the Closing............................................................................. 6
4.2 Performance; No Default................................................................. 6
4.3 Certificates............................................................................ 6
4.4 Legal Investment........................................................................ 7
</TABLE>
(i)
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
4.5 Compliance With Securities Laws........................................................ 7
4.6 Proceedings and Documents.............................................................. 7
4.7 Legal Fees............................................................................. 8
4.8 Prior Delivery of Documents Pertaining to the Initial
Centers................................................................................ 8
4.9 Prior Delivery of Evidence of Property Insurance....................................... 10
4.10 Prior Execution and Delivery of the Mortgage, the Financing
Statement and the Other Instruments................................................... 10
4.11 Filing and Recordation................................................................ 11
4.12 Execution and Delivery of Guaranty Agreements by Current
Subsidiaries.......................................................................... 11
4.13 Prior Delivery of Search Certificate.................................................. 12
4.14 Execution and Delivery of Indemnity Agreements........................................ 12
(S)5 Conditions to Each Funding................................................................. 12
5.1 Representations and Warranties True as of Funding..................................... 12
5.2 Performance; No Default............................................................... 13
5.3 Certificates.......................................................................... 13
5.4 Legal Investment...................................................................... 13
5.5 Compliance With Securities Laws....................................................... 14
5.6 Proceedings and Documents............................................................. 14
5.7 Legal Fees............................................................................ 14
5.8 Opinion of Counsel for the Trust...................................................... 14
5.9 Opinion of Your Special Counsel....................................................... 14
5.10 Supplemental Title Opinions........................................................... 14
5.11 Prior Fulfillment of Conditions to the Closing........................................ 15
(S)6 Representations and Warranties of the Trust................................................ 15
6.1 Organization of the Trust............................................................. 15
6.2 Tax Status of the Trust............................................................... 15
6.3 Qualification......................................................................... 15
6.4 Business.............................................................................. 16
6.5 Financial Statements.................................................................. 16
6.6 Changes............................................................................... 16
6.7 Tax Returns and Payments.............................................................. 16
6.8 Indebtedness.......................................................................... 17
6.9 Title to Other Assets................................................................. 17
6.10 Litigation............................................................................ 18
6.11 Compliance With Other Instruments..................................................... 18
6.12 Consents.............................................................................. 19
6.13 Authorization, Execution and Delivery................................................. 19
6.14 Broker's Fees......................................................................... 20
6.15 Use of Proceeds....................................................................... 20
6.16 Investment Company.................................................................... 20
6.17 Public Utility Holding Company........................................................ 20
</TABLE>
(ii)
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
6.18 Compliance With ERISA................................................................. 20
(a) Prohibited Transactions........................................................... 20
(b) Plan Termination; Material Liabilities............................................ 20
(c) Accumulated Funding Deficiency.................................................... 21
(d) Relationship of Benefits to Plan Assets........................................... 21
(e) Execution of Agreement; Purchase and Sale of Notes................................ 21
(f) Multiemployer Plans............................................................... 21
(g) Compliance With Applicable Laws................................................... 21
6.19 Certain Regulations................................................................... 21
6.20 Disclosure............................................................................ 22
6.21 Compliance With Laws.................................................................. 22
6.22 Offer of Notes........................................................................ 22
6.23 Insurance............................................................................. 23
6.24 Environmental Matters................................................................. 23
6.25 Subsidiaries.......................................................................... 24
6.26 Title Matters......................................................................... 24
6.27 Value of Initial Centers.............................................................. 24
6.28 Initial Leases and Material Contracts................................................. 24
(S)7 Representations of the Purchasers.......................................................... 25
7.1 Purchase for Investment............................................................... 25
7.2 Source of Funds....................................................................... 25
(S)8 Optional Prepayment of Notes............................................................... 26
8.1 Restriction on Prepayment of Notes.................................................... 26
8.2 Prepayment at Option of the Trust..................................................... 26
8.3 Notice of Optional Prepayment and Notice of Optional
Prepayment Premium.................................................................... 26
8.4 Maturity; Surrender................................................................... 26
8.5 Interest on Past Due Principal to be Prepaid and on
Past Due Optional Prepayment Premium.................................................. 26
8.6 Effect of Partial Prepayments on Monthly Installments................................. 27
8.7 Restrictions on Partial Prepayments................................................... 27
8.8 Allocation of Partial Prepayments..................................................... 27
(S)9 Business and Financial Covenants of the Trust.............................................. 27
9.1 Financial Statements and Other Reports................................................ 27
9.2 Inspection............................................................................ 31
9.3 Compliance With ERISA................................................................. 32
9.4 Transactions With Affiliates.......................................................... 32
9.5 Conduct of Business................................................................... 32
9.6 Insurance............................................................................. 33
9.7 Existence and Good Standing........................................................... 33
9.8 Payment of Taxes and Claims; Tax Consolidation........................................ 33
9.9 Maintenance of Properties............................................................. 34
9.10 Compliance With Laws.................................................................. 34
</TABLE>
(iii)
<PAGE>
<TABLE>
<S> <C>
9.11 Consolidation and Merger.............................................................. 34
9.12 Execution and Delivery of Guaranty Agreements by New
Wholly-Owned Subsidiaries............................................................. 34
9.13 Restriction on Assets Owned by Non-Guaranteeing
Subsidiaries.......................................................................... 35
(S)10 Covenants of the Trust With Respect to the Mortgaged Property.............................. 35
10.1 Performance of Leases................................................................ 35
10.2 Environmental Compliance and Indemnity............................................... 35
10.3 Alterations.......................................................................... 37
10.4 Replacement of Fixtures and Personalty............................................... 37
10.5 Warranty of Title; No Further Encumbrances........................................... 37
10.6 Insurance............................................................................ 38
10.7 Payment of Taxes and Assessments..................................................... 38
10.8 Operation; Maintenance............................................................... 38
10.9 Material Contracts................................................................... 39
10.10 Compliance With Laws................................................................. 39
10.11 Supplemental Title Opinions After Each Funding....................................... 39
10.12 Further Assurances................................................................... 40
10.13 Maintenance of the Lien of the Mortgage.............................................. 40
10.14 Notices to Lessees................................................................... 40
(S)11 Registration, Transfer and Substitution of Notes........................................... 40
11.1 Note Register; Ownership of Notes.................................................... 40
11.2 Transfer and Exchange of Notes....................................................... 41
11.3 Replacement of Notes................................................................. 41
11.4 Determination of Outstanding Notes................................................... 41
11.5 Amendment of the Financing Statement................................................. 41
(S)12 Payments on the Notes...................................................................... 42
12.1 Place of Payment..................................................................... 42
12.2 Method of Payment.................................................................... 42
(S)13 Additions to and Releases of the Mortgaged Property;
Required Prepayment........................................................................ 42
13.1 Valuation of Remaining Collateral.................................................... 42
(a) Valuation by Parties............................................................. 42
(b) Appraisal Procedure.............................................................. 43
13.2 Rejection of Nominated Collateral.................................................... 44
13.3 Required Prepayment.................................................................. 44
13.4 Additional Collateral................................................................ 47
13.5 Supplemental Liens................................................................... 51
13.6 Release of Liens..................................................................... 53
(a) Limitations on Requests for Release.............................................. 53
(b) Release of Release Centers....................................................... 53
</TABLE>
(iv)
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
(c) Further Conditions to Release ................................................... 54
(S)14 Requisition or Taking; Casualty Loss....................................................... 55
14.1 Requisition or Taking................................................................ 55
14.2 Casualty Loss........................................................................ 56
14.3 Effect of Application of Proceeds.................................................... 58
(S)15 Procedure for Release of Subsidiaries From Guaranty Agreements............................. 58
(a) Officers' Certificate Requesting Release............................................... 58
(b) Execution and Delivery of Release From Guaranty........................................ 59
(S)16 Default and Acceleration................................................................... 59
16.1 Events of Default.................................................................... 59
16.2 Acceleration of Maturity............................................................. 61
(a) Automatic Acceleration of Maturity............................................... 61
(b) Acceleration of Maturity of All Notes by Declaration............................. 62
(c) Acceleration of Maturity of a Single Note by Declaration......................... 62
(d) No Effect on Other Amounts That Are Due and Payable.............................. 62
16.3 Interest on Amounts Due and Payable Pursuant to (S)16.2.............................. 62
16.4 Rescission........................................................................... 63
(S)17 Remedies on Default........................................................................ 63
17.1 Rights of Holders to Institute Suit.................................................. 63
17.2 General Remedies..................................................................... 63
17.3 Remedies Against the Mortgaged Property.............................................. 64
17.4 Acceleration Upon Sale of the Mortgaged Property..................................... 64
17.5 Delay or Omission Not a Waiver....................................................... 64
17.6 Rights and Remedies Cumulative....................................................... 64
(S)18 Definitions................................................................................ 64
18.1 Certain Defined Terms................................................................ 64
Additional Collateral.............................................................. 64
Additional Rights.................................................................. 65
affiliate.......................................................................... 65
Affiliate.......................................................................... 65
Agreement.......................................................................... 66
Amended Senior Secured Note Agreement.............................................. 66
Amendment.......................................................................... 66
Anchor Lease....................................................................... 66
Appraisal Procedure................................................................ 66
Approved Encumbrances.............................................................. 66
Appurtenances...................................................................... 67
Available Maturity Date............................................................ 67
Base Real Property................................................................. 68
</TABLE>
(v)
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Base Title Policy.................................................................. 68
Basic Documents.................................................................... 68
Buildings.......................................................................... 68
Business Day....................................................................... 68
Capital Lease...................................................................... 68
Capital Lease Obligation........................................................... 68
Casualty Insurance Proceeds........................................................ 68
Center............................................................................. 68
Closing............................................................................ 69
Closing Date....................................................................... 69
Code............................................................................... 69
Collateral......................................................................... 69
Commission......................................................................... 69
Commitment Amount.................................................................. 69
Commitment Fee..................................................................... 70
Company............................................................................ 70
Condemnation....................................................................... 70
Condemnation Proceeds.............................................................. 70
Consolidated Subsidiaries.......................................................... 70
Consolidated Total Assets.......................................................... 70
Contested Center................................................................... 70
Coupon Rate........................................................................ 70
Current Subsidiaries............................................................... 71
Default Rate....................................................................... 71
Designated Number of Installments.................................................. 71
Environmental Engineer............................................................. 71
Environmental Event................................................................ 71
Environmental Laws................................................................. 72
Environmental Report............................................................... 72
ERISA.............................................................................. 72
Evaluation Event................................................................... 72
Event of Default................................................................... 72
Exchange Act....................................................................... 72
Excluded Center.................................................................... 72
Exclusion Notice................................................................... 73
Executive Officers................................................................. 73
Financing Statement................................................................ 73
Fiscal Year........................................................................ 73
Fixtures........................................................................... 73
Funding............................................................................ 73
Funding Date....................................................................... 73
Funding Period..................................................................... 73
GAAP............................................................................... 73
Guaranteeing Subsidiary............................................................ 74
Guaranty........................................................................... 74
Guaranty Agreements................................................................ 74
Hazardous Materials................................................................ 74
"hereof"........................................................................... 74
Holder............................................................................. 75
</TABLE>
(vi)
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Indebtedness....................................................................... 75
Indebtedness for Borrowed Money.................................................... 75
Indemnified Parties................................................................ 76
Indemnity Agreements............................................................... 76
Independent........................................................................ 76
Initial Leases..................................................................... 76
Initial Center..................................................................... 76
Initial Site....................................................................... 76
Insurance Coverage................................................................. 76
Interest Payment Dates............................................................. 76
Interest Rate...................................................................... 77
Judgment........................................................................... 77
Leases............................................................................. 77
Lien............................................................................... 77
Lien of the Mortgage............................................................... 77
Loan to Value Ratio................................................................ 77
MAI Appraiser...................................................................... 77
Majority Holders................................................................... 77
Market Value....................................................................... 77
Material Contract.................................................................. 78
Material Development............................................................... 78
Maturity Date...................................................................... 78
Maximum Lawful Rate................................................................ 79
Monthly Installment Amount......................................................... 79
Monthly Installments............................................................... 79
Moody's............................................................................ 80
Mortgage........................................................................... 80
Mortgage Date...................................................................... 80
Mortgaged Center................................................................... 80
Mortgaged Property................................................................. 80
Multiemployer Plan................................................................. 80
Net Casualty Insurance Proceeds.................................................... 80
Net Condemnation Proceeds.......................................................... 80
New Collateral..................................................................... 80
Nomination Notice.................................................................. 80
Note Default Premium............................................................... 82
Noteholders' Value................................................................. 83
Notes.............................................................................. 83
Obligations........................................................................ 83
Officers' Certificate.............................................................. 83
Operative Documents................................................................ 83
Optional Prepayment Premium........................................................ 84
Other Assets....................................................................... 84
Other Instruments.................................................................. 84
Payment Date....................................................................... 84
Permitted Encumbrances............................................................. 84
Person............................................................................. 85
Personalty......................................................................... 85
Plan............................................................................... 86
</TABLE>
(vii)
<PAGE>
<TABLE>
<S> <C>
Potential Event of Default......................................................... 86
Preliminary Exceptions............................................................. 86
Preliminary Title Documents........................................................ 86
property........................................................................... 86
Purchasers......................................................................... 86
Rating Notice...................................................................... 86
Reduced Prepayment Premium......................................................... 87
Rejection Notice................................................................... 87
Release Center..................................................................... 87
Remaining Collateral............................................................... 87
Rents.............................................................................. 88
Reporting Media.................................................................... 88
Request for Release................................................................ 88
Required Prepayment................................................................ 88
Securities Act..................................................................... 88
Senior Secured Note Agreement...................................................... 89
Senior Secured Notes............................................................... 89
Senior Secured Noteholders......................................................... 89
Series Required Prepayment......................................................... 89
Settlement Date.................................................................... 89
Special Prepayment Premium......................................................... 89
Standard & Poor's.................................................................. 90
Subordination Agreement............................................................ 90
Subsidiary......................................................................... 90
Substantial Casualty Loss.......................................................... 91
Supplemental Mortgage.............................................................. 91
Survey............................................................................. 91
Surveyor........................................................................... 91
Tenant Certificate................................................................. 91
Title Defect....................................................................... 91
Title Event........................................................................ 91
Title Opinion...................................................................... 91
Transaction Documents.............................................................. 92
Treasury Based Rate................................................................ 92
Trust.............................................................................. 92
Trustee............................................................................ 92
Valuation Date..................................................................... 92
Valuation Process.................................................................. 92
Valuation Report................................................................... 93
Wholly-Owned Subsidiary............................................................ 93
Work............................................................................... 93
18.2 Accounting Terms..................................................................... 93
18.3 References to Instruments............................................................ 93
18.4 Singular and Plural.................................................................. 93
18.5 Determination of Outstanding Notes For Certain Purposes.............................. 93
(S)19 Expenses................................................................................... 93
(S)20 Survival of Representations and Warranties................................................. 94
</TABLE>
(viii)
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
(S)21 Restriction on Transfer of Notes........................................................... 94
(S)22 Amendment and Waiver....................................................................... 95
(S)23 Notices.................................................................................... 96
(S)24 Usury...................................................................................... 96
(S)25 Assignment................................................................................. 97
(S)26 Entire Agreement........................................................................... 97
(S)27 Governing Law.............................................................................. 97
(S)28 Headings................................................................................... 97
(S)29 Multiple Counterparts...................................................................... 97
(S)30 Severability............................................................................... 97
</TABLE>
(ix)
<PAGE>
List of Schedules and Exhibits
Schedule I - Schedule of Purchasers
Exhibit A - Variable Issue Senior Secured Note
Exhibit B - Amendment No. 2 to Note Purchase Agreement
Exhibit C - Officers' Certificate to Establish Funding Dates
Exhibit D - Officers' Certificate at the Closing
Exhibit E - Certificate of the Secretary of the Trust at the Closing
Exhibit F - Certificate of the Secretary of the Trust as to Certain Instruments
Exhibit G - Deed of Trust, Assignment of Rents, Security Agreement and
Financing Statement
Exhibit H - Agreement of Guaranty
Exhibit I - Certificate of the Secretary of a Current Subsidiary
Exhibit J - Officers' Certificate at Funding
Exhibit K - Certificate of the Secretary of the Trust at Funding
Exhibit L - Opinion of Andrews & Kurth L.L.P.
Exhibit M - Opinion of Fulbright & Jaworski L.L.P.
Exhibit N - Description of Indebtedness for Borrowed Money of the Trust and
Subsidiaries
Exhibit O - Description of Liens on Other Assets
Exhibit P - List of Subsidiaries of the Trust
Exhibit Q - Description of Insurance With Respect to the Mortgaged Centers
Exhibit R - Supplemental Deed of Trust, Assignment of Rents, Security Agreement
and Financing Statement
Exhibit S - Officers' Certificate to Request Release From Guaranty Agreement
Exhibit T - Release From Guaranty
Exhibit U - Subordination, Non-Disturbance and Attornment Agreement
(x)
<PAGE>
Exhibit V - Tenant Estoppel Certificate
Exhibit W - Title Opinion
Exhibit X - Indemnity Agreement (Northway Center)
Exhibit Y - Indemnity Agreement (El Dorado Center)
(xi)
<PAGE>
WEINGARTEN REALTY INVESTORS
2600 Citadel Plaza Drive
Houston Texas 77008
April 1, 1994
To the Purchasers
c/o American General Corporation
2929 Allen Parkway
Houston, Texas 77019
Ladies and Gentlemen:
Weingarten Realty Investors, a Texas real estate investment trust (the
"Trust"), hereby agrees with each of you, and with each other Holder from time
to time, as follows:
(S) 1 The Notes.
(a) Authorization of Notes. The Trust has duly authorized the issue and sale
of not more than $30,000,000 aggregate principal amount of the Notes, which
shall be issuable in not more than six series.
(b) Limitations on Aggregate Principal Amount. The aggregate principal amount
of the Notes shall be limited to the aggregate principal amount of Notes that
are issued and sold pursuant to this Agreement and outstanding on the date on
which the Funding Period terminates; and the aggregate principal amount of the
Notes of each series shall be limited to the aggregate principal amount of Notes
of that series that are issued and sold pursuant to this Agreement at the
Funding for Notes of that series.
(c) Designations of Series of Notes. The Notes of each series shall be
designated by a capital letter of the Roman alphabet so as to distinguish Notes
of that series from all other Notes.
(d) Maturity Dates. The aggregate unpaid principal amount of the outstanding
Notes of each series, and accrued and unpaid interest on such aggregate unpaid
principal amount, shall become due and payable on the Maturity Date for Notes of
that series (or, if such Maturity Date is not a Business Day, on the next
Business Day) unless such aggregate unpaid principal amount, and accrued and
unpaid interest on such aggregate unpaid principal amount, shall earlier have
become due and payable pursuant to this Agreement.
(e) Interest Rates. The unpaid portion of the principal amount of each
outstanding Note of each series shall bear interest (computed on the basis of a
360-day year of twelve 30-day months) from the date of such Note until the
unpaid portion of the principal amount of such Note becomes due and payable at a
rate per annum equal to the Interest Rate for Notes of that series, provided
that if, pursuant
<PAGE>
To the Purchasers
April 1, 1994
Page 2
to any provision of this Agreement, any part of the unpaid portion of such
principal amount shall bear interest during any period at a rate per annum equal
to the Default Rate for Notes of that series, then such part shall not also bear
interest during that period at the Interest Rate for Notes of that series.
(f) Payment of Interest Accruing During the Funding Period. Unless such
accrued and unpaid interest shall earlier have become due and payable pursuant
to this Agreement, unpaid interest, accrued to the date on which the same
becomes due and payable, on the unpaid portion of the principal amount of each
outstanding Note of each series shall be due and payable on each of the Interest
Payment Dates that follows the Funding Date for Notes of that series (or, if
such Interest Payment Date is not a Business Day, on the next Business Day).
(g) Interest on Past Due Interest Accruing During the Funding Period. If any
portion of the amount of any interest that becomes due and payable pursuant to
(S) l(f) to the Holder of any outstanding Note of any series is not paid on the
date such amount becomes due and payable pursuant to (S) l(f), the portion of
such amount that was not paid shall bear interest (computed on the basis of a
360-day year of twelve 30-day months) from that date until the date such portion
is paid at a rate per annum equal to the Default Rate for Notes of that series.
Accrued and unpaid interest on the portion of such amount that is not paid on
the date such amount becomes due and payable pursuant to (S) l(f) shall be due
and payable on demand.
(h) Payment of Principal and Interest in Monthly Installments Following the
Termination of the Funding Period. Following the date on which the Funding
Period terminates, the unpaid portion of the principal amount of each
outstanding Note, and accrued and unpaid interest on the unpaid portion of such
principal amount, shall be due and payable in consecutive monthly installments
unless the unpaid portion of such principal amount and such accrued and unpaid
interest shall earlier have become due and payable pursuant to this Agreement.
(i) Application of Monthly Installments. The amount of each Monthly
Installment for any outstanding Note of any series shall be applied first to the
payment of unpaid interest, accrued to the date on which such Monthly
Installment becomes due and payable, on the unpaid portion of the principal
amount of such Note, and the balance of the amount of that Monthly Installment
shall be applied to the payment of the unpaid portion of such principal amount.
(j) Due Dates of Monthly Installments. The first Monthly Installment for each
outstanding Note of each series shall be due and payable on March 27, 1995, and
a subsequent Monthly Installment for such Note shall be due and payable on the
same day of each succeeding month (or, if such day is not a Business Day, on the
next Business Day) until the unpaid portion of the principal amount of such
Note, and accrued and unpaid interest on the unpaid portion of such principal
amount, are paid.
(k) Amounts of Monthly Installments. Each Monthly Installment for each
outstanding Note of each series shall be in an amount necessary to pay the
<PAGE>
To the Purchasers
April 1, 1994
Page 3
original principal amount of such Note, and unpaid interest, accrued from
February 27, 1995, to the date on which such Monthly Installment becomes due and
payable pursuant to (S) l(j), on the unpaid portion of the principal amount of
such Note, in consecutive monthly installments that are equal in number to the
Designated Number of Installments for Notes of that series and that are as
nearly equal in amount as possible, assuming for purposes of determining such
amount that (i) the first of such consecutive monthly installments is due and
payable on March 27,1995, (ii) one of such consecutive monthly installments is
due and payable on the same day of each succeeding month through and including
the Maturity Date for Notes of that series, (iii) the amount of each of such
consecutive monthly installments is applied f1rst to the payment of such accrued
and unpaid interest, and (iv) the balance of each of such consecutive monthly
installments is applied to the payment of the unpaid portion of the principal
amount of such Note.
(l) Interest on Past Due Monthly Installments. If any portion of the amount of
any Monthly Installment for any outstanding Note of any series is not paid on
the date such Monthly Installment becomes due and payable pursuant to (S) 1(j),
the portion of such amount that was not paid shall bear interest (computed on
the basis of a 360-day year of twelve 30-day months) from that date until the
date such portion is paid at a rate per annum equal to the Default Rate for
Notes of that series. Accrued and unpaid interest on the portion of such amount
that is not paid on the date such amount becomes due and payable pursuant to
(S) l(j) shall be due and payable on demand.
(m) Dating of Notes. The Notes of each series shall be dated the Funding Date
for Notes of that series.
(n) Form of Notes. Each Note shall be substantially in the form of Exhibit A,
with appropriate insertions as indicated in such form.
(o) Execution of Notes. Each Note shall be executed on behalf of the Trust by
a duly authorized officer of the Trust.
(p) Numbering of Notes. The Notes of each series shall be consecutively
numbered in the order of their issuance.
(S) 2 The Closing.
(a) Time and Place of the Closing. This Agreement is being executed and
delivered by the Trust and by each Purchaser at the Closing, but is effective as
of the date hereof.
(b) Execution and Delivery of the Amendment. At the Closing, the Trust shall
execute and deliver to each Purchaser and to each of the Senior Secured
Noteholders (or their respective successors), and (subject to the terms and
conditions contained in this Agreement) each Purchaser shall cause each of the
Senior Secured Noteholders (or their respective successors) to execute and
deliver to the Trust and to
<PAGE>
To the Purchasers
April 1, 1994
Page 4
each Purchaser, the Amendment dated the Closing Date and substantially in the
form of Exhibit B.
(S) 3 The Fundings.
(a) Procedure for Establishing Funding Dates. Not more than 30 days, nor fewer
than five Business Days, before the Funding Date for Notes of any series, the
Trust shall deliver to each of you a single Officers' Certificate dated the date
of delivery thereof, substantially in the form of Exhibit C, with appropriate
insertions as indicated in such form, and stating:
(i) that the Trust thereby notifies each Purchaser that the Trust intends to
issue and sell Notes of that series;
(ii) the date for the issue and sale of the Notes of that series, which date
shall be a Business Day (x) after the Closing Date and (y) before the date on
which the Funding Period terminates;
(iii) the date upon which the aggregate unpaid principal amount of the
outstanding Notes of that series, and accrued and unpaid interest on such
aggregate unpaid principal amount, shall become due and payable unless such
aggregate unpaid principal amount shall earlier have become due and payable
pursuant to this Agreement, which date shall be an Available Maturity Date;
(iv) the aggregate principal amount of Notes of that series, which aggregate
principal amount shall be (x) not more than the Commitment Amount at such
Funding Date, (y) not less than $5,000,000 and (z) an integral multiple of
$1,000,000; and
(v) the designation of the Notes of that series, which shall be made in
accordance with (S) l(c).
(b) One Series of Notes on Any Funding Date; Uniformity of Notes of a
Particular Series. On the Funding Date for Notes of any series, no Notes other
than Notes of that series shall be issued and sold. The Maturity Date and the
Interest Rate for each Note of that series shall be identical.
(c) Termination of Funding Period. No Funding Date shall occur on or after the
termination of the Funding Period; none of you shall have any obligation to
purchase Notes of any series on or after the date on which the Funding Period
terminates; and no Notes shall be issued on or after the termination of the
Funding Period, except pursuant to (S) 11.
(d) Determination of Principal Amount of Notes to be Purchased by Each
Purchaser. Before the Funding Date for Notes of any series, each Purchaser shall
<PAGE>
To the Purchasers
April 1, 1994
Page 5
give written notice to the Trust stating the principal amount of Notes of that
series that such Purchaser intends to purchase on such Funding Date, subject to
the terms and conditions contained in this Agreement. Such notice may state that
such Purchaser intends to purchase (i) none of the Notes of that series, (ii)
the aggregate principal amount of Notes of that series, or (iii) any principal
amount of Notes of that series that is not less than $1,000,000 nor more than
the aggregate principal amount of Notes of that series, provided that each
Purchaser agrees that the sum of the respective principal amounts stated in such
notices shall equal the aggregate principal amount of Notes of that series.
(e) Sale and Purchase of Notes at Each Funding. If any notice given by any
Purchaser pursuant to (S) 3(d) shall state that such Purchaser intends to
purchase a principal amount of Notes of any series, then, at the Funding Date
for Notes of that series, the Trust shall issue and sell to such Purchaser, and
(subject to the terms and conditions contained in this Agreement) such Purchaser
shall purchase from the Trust, a single Note of that series in the principal
amount so stated in that notice. The purchase price for such Note shall be 100%
of the principal amount thereof. Such Note shall be registered in the name of
such Purchaser (or, if such Purchaser so requests before the Funding Date for
Notes of that series, in the name of such Purchaser's nominee) and shall be
delivered to such Purchaser's representative against delivery by such Purchaser
to the Trust of immediately available funds in the amount of the purchase price
for such Note.
(f) Failure to Deliver; Non-Fulfillment of Conditions to Funding. If, at the
Funding for Notes of any series, the Trust shall fail to deliver to any
Purchaser the Note to be purchased by such Purchaser at such Funding, or if at
such Funding any of the conditions contained in (S) 5 shall not have been
fulfilled to the satisfaction of each Purchaser, each Purchaser may, by written
notice to the Trust, elect to be relieved of any further obligation or liability
to purchase the Note to be purchased by such Purchaser at such Funding, without
thereby waiving any other rights that such Purchaser may have by reason of such
failure or non-fulfillment (including, without limitation, the rights of such
Purchaser pursuant to (S) 3(g)).
(g) Payment of Commitment Fee. If the Commitment Amount at the date on which
the Funding Period terminates is greater than zero, then, on the first Business
Day after that date, the Trust shall pay to American General Corporation, for
the accounts of the several Purchasers, the Commitment Fee at that date.
Notwithstanding the foregoing provisions of this (S) 3(g), if, at the Funding
for Notes of any series, (i) each of the conditions contained in (S) 5 shall
have been fulfilled to the satisfaction of each Purchaser, (ii) the Trust shall
have delivered to each Purchaser the Note to be purchased by such Purchaser at
such Funding, and (iii) any Purchaser shall have failed to purchase the Note to
be purchased by such Purchaser at such Funding, the amount payable pursuant to
the first sentence of this (S) 3(g) shall be reduced by the product obtained by
multiplying (x) the principal amount of the Note that such Purchaser so failed
to purchase times (y) 2%. Any payment pursuant to this (S) 3(g) is in
consideration of the agreement of each Purchaser stated in the proviso to the
last
<PAGE>
To the Purchasers
April 1, 1994
Page 6
sentence of (S) 3(d) and is not intended to constitute compensation for the use,
forbearance or detention of money.
(h) Interest on Past Due Commitment Fee. If any portion of any amount payable
pursuant to (S) 3(g) is not paid on the Business Day specified in (S) 3(g), the
portion of such amount that was not paid shall bear interest (computed on the
basis of a 360-day year of twelve 30-day months) from such Business Day until
the date such portion is paid at the rate of 10% per annum. Accrued and unpaid
interest on the portion of such amount that is not paid on such Business Day
shall be due and payable on demand.
(S) 4 Conditions to the Closing. Your respective obligations to cause each of
the Senior Secured Noteholders to execute and deliver the Amendment at the
Closing is subject to the fulfillment, to the satisfaction of each of you, of
the following conditions:
(S) 4.1 Representations and Warranties True as of the Closing. The
representations and warranties of the Trust contained in this Agreement shall be
true and correct at the Closing with the same effect as though made at the
Closing.
(S) 4.2 Performance; No Default. At the Closing, (i) the Trust shall have
performed and complied with all agreements and conditions contained in this
Agreement that are required to be performed or complied with by the Trust before
or at the Closing and (ii) no Event of Default or Potential Event of Default
shall exist.
(S) 4.3 Certificates. At the Closing, the Trust shall have delivered to each
of you:
(a) an Officers' Certificate dated the Closing Date, substantially in the
form of Exhibit D and certifying that the conditions specified in (S)(S) 4.1
and 4.2 have been fulfilled;
(b) a certificate of the Secretary of the Trust dated the Closing Date,
substantially in the form of Exhibit E, with appropriate insertions as
indicated in such form, and certifying (i) the incumbency of each of the
officers of the Trust who execute this Agreement, the Mortgage or the
Amendment on behalf of the Trust, (ii) the adoption by the Board of Trust
Managers of the Trust of resolutions, in the form attached to such
certificate, authorizing (w) the execution and delivery by the Trust of this
Agreement, the Amendment, and the Mortgage, (x) the issue and sale by the
Trust pursuant to this Agreement of not more than $30,000,000 aggregate
principal amount of the Notes, (y) the fulfillment by the Trust of the
conditions contained in (S)(S) 4 and 5, and (z) a named officer of the Trust
to (1) determine the Funding Date for the Notes of each series, the Maturity
Date for the Notes of each series, and the aggregate principal amount of the
Notes of each series and (2) execute and deliver on behalf of the Trust (A)
each Note that the Trust becomes obligated to issue and sell pursuant
<PAGE>
To the Purchasers
April 1, 1994
Page 7
to this Agreement and (B) each document that the Trust is required by this
Agreement to execute and deliver as a condition to your respective obligations
to purchase Notes of that series, and (iii) that such resolutions have not
been amended or rescinded by the Board of Trust Managers of the Trust since
the date of their adoption, which date shall be specified in such certificate,
and are in full force and effect at the Closing Date; and
(c) a certificate of the Secretary of the Trust dated the Closing Date,
substantially in the form of Exhibit F, with appropriate insertions as
indicated in such form, and certifying that (i) the copy of the Trust's
Restated Declaration of Trust certified by the County Clerk of Harris County,
Texas, and attached to such certificate is a true and complete copy of such
Declaration of Trust as in effect at the Closing Date and (ii) the copy of the
bylaws of the Trust attached to such certificate is a true and complete copy
of such bylaws as in effect at that date.
(S) 4.4 Legal Investment. On the Closing Date:
(a) your respective purchases of Notes pursuant to this Agreement (i) shall
not be prohibited by any applicable law or governmental regulation (including,
without limitation, Regulation G, T, U or X of the Board of Governors of the
Federal Reserve System), (ii) shall not subject any of you to any penalty or,
in your respective reasonable judgments, any other onerous condition under any
applicable law or governmental regulation, and (iii) shall be permitted by the
laws and governmental regulations of the jurisdictions to which you,
respectively, are subject, without recourse to provisions (such as Article
3.33 Sec. 4(o) of the Texas Insurance Code) permitting limited investments by
life insurance companies in securities not otherwise legally eligible for
investment; and
(b) the Trust shall have delivered to each of you, if requested by any of
you at least two Business Days before the Closing Date, an Officers'
Certificate dated the Closing Date, satisfactory in form and substance to you
and your special counsel, and certifying to such matters of fact as any of you
may request to determine fulfillment of the condition specified in (S) 4.4(a).
(S) 4.5 Compliance With Securities Laws. At the Closing, (i) the offering of
the Notes shall have complied with all applicable requirements of Federal and
state securities laws, and (ii) each of you shall have received such evidence of
compliance, in form and substance satisfactory to each of you, as any of you may
request.
(S) 4.6 Proceedings and Documents. At the Closing, (i) all proceedings in
connection with the transactions contemplated by this Agreement and all
documents incident to such transactions shall be satisfactory to each of you,
and (ii) each of you shall have received such counterpart originals or certified
or other copies of such documents as any of you may reasonably request.
<PAGE>
To the Purchasers
April 1, 1994
Page 8
(S) 4.7 Legal Fees. At the Closing, the Trust shall have paid the reasonable
fees, expenses and disbursements of your special counsel, Fulbright & Jaworski
L.L.P., incurred through the Closing Date in connection with this Agreement and
the transactions contemplated hereby, including, without limitation, the
preparation of the Amendment.
(S) 4.8 Prior Delivery of Documents Pertaining to the Initial Centers. Before
the Closing Date, the Trust shall have delivered to each of you:
(a) an Officers' Certificate that (i) is dated the date of delivery thereof,
(ii) identifies, by name and location, each of the Centers to be included in
the Mortgaged Property at the Closing Date, (iii) sets forth (x) in reasonable
detail, a narrative description of each of those Centers, including a
statement of the dimensions, character of construction, and current and
proposed use of each material improvement that comprises a part of such
Center, and (y) a sufficient legal description of the tract of land that
comprises a part of such Center, (iv) identifies, by date, term and identity
of the lessee, each Lease with respect to each of those Centers that is in
effect at the date of such Officers' Certificate, (v) identifies, by date,
term and identity of the party or parties thereto (other than the Trust), each
Material Contract with respect to each of those Centers, (vi) identifies, by
name of the issuer, amount of coverage, file number, policy number, date of
policy, name of the insured, and the name of the Center that includes the Base
Real Property title to which is covered by such policy, a Base Title Policy
with respect to each of those Centers, and (vii) certifies that a true and
complete copy of each of those Base Title Policies is delivered with such
Officers' Certificate;
(b) an abstractor's search certificate (i) covering the Base Real Property
with respect to each Initial Center, (ii) stating a search period from and
including the date of the Base Title Policy with respect to such Center to and
including a date not more than 30 days before the Closing Date, and (iii)
identifying each document that affects such Base Real Property and was filed
of record during such search period;
(c) a name search certificate issued by Stewart Title Company stating that,
as of a date not more than 30 days before the Closing Date, there was no
record on file in the Office of the County Clerk of Harris County, Texas, or
in the office of the County Clerk of Fort Bend County, Texas, of any abstract
of judgment, federal lien or state tax lien with respect to which the Trust is
the debtor;
(d) a Title Opinion with respect to each Initial Center, which Title Opinion
shall be (i) dated the date of such Officers' Certificate and (ii) addressed
to each of you;
<PAGE>
To the Purchasers
April 1, 1994
Page 9
(e) a true and complete copy of each instrument listed in any of such Title
Opinions as an encumbrance on, or defect in title to, any Initial Center;
(f) a survey by a Surveyor of each Initial Site consisting of (i) a map or
plat of such Initial Site that (x) is based on an on-the-ground survey of such
Initial Site that was made by such Surveyor not more than 90 days before the
Closing Date, (y) sets forth the as-built location of each improvement that is
located on such Initial Site and (z) was prepared in accordance with all other
current standards and specifications of the Texas Society of Professional
Surveyors for a category lA land title survey, (ii) a written legal
description of such Initial Site prepared by such Surveyor, and (iii) a
certificate of such Surveyor (w) signed and sealed by such Surveyor, (x) dated
not more than 90 days before the Closing Date, (y) certifying to each of you
(1) the accuracy of such map or plat, (2) the accuracy of such legal
description, and (3) compliance by such survey with such standards and
specifications, and (z) stating that, except as shown on such map or plat, (1)
there are no visible encroachments by any improvement that is located on such
Initial Site onto adjoining premises, streets or alleys, (2) there are no
visible encroachments onto such Initial Site by any improvement from adjoining
premises, (3) there are no encroachments onto any easement, building setback
line or other restricted area by any improvement that is located on such
Initial Site, (4) such Initial Site has access to and from a dedicated public
roadway, and (5) no part of such Initial Site is situated in a flood hazard or
flood plain area that is designated as such by, or in accordance with criteria
established by authority of, the Federal Insurance Administration or any other
governmental authority having jurisdiction;
(g) a written report by the Environmental Engineer of its Phase I
environmental audit of each Initial Center that (i) is dated not more than 60
days before the Closing Date, (ii) is duly executed on behalf of the
Environmental Engineer, (iii) contains a statement, in reasonable detail, of
the scope of such audit, (iv) states that such audit was conducted not more
than 90 days before the Closing Date, (v) is accompanied by a letter from such
Environmental Engineer to the Purchasers stating that you are entitled to rely
upon such report in connection with your respective purchases of Notes
pursuant to this Agreement, and (vii) evidences, to the reasonable
satisfaction of each of you, that each Initial Center meets the requirements
of (S) 6.24;
(h) a true and complete copy of each Initial Lease that is an Anchor Lease
with respect to any Initial Center;
(i) an executed and acknowledged counterpart of a Tenant Certif1cate dated
as of a date not more than 45 days before the Closing Date, substantially in
the form of Exhibit V (with such changes therein, if any, as
<PAGE>
To the Purchasers
April 1, 1994
Page 10
shall have been approved by the lessee named therein and each of you), and
with appropriate insertions as indicated in such form, for each Initial Lease
that is an Anchor Lease with respect to any Initial Center;
(j) an executed and acknowledged counterpart of a Subordination Agreement
dated as of a date not more than 45 days before the Closing Date,
substantially in the form of Exhibit U (with such changes therein, if any, as
shall have been approved by the lessee named therein and each of you), and
with appropriate insertions as indicated in such form, for each Initial Lease
that is an Anchor Lease with respect to any Initial Center;
(k) a true and complete copy of each Material Contract with respect to each
Initial Center; and
(l) either (i) a tax certificate issued pursuant to Section 31.08 of the
Texas Tax Code for each taxing unit that is entitled to a lien for unpaid
taxes on the Base Real Property with respect to any of the Initial Centers,
which tax certificates shall collectively evidence that there are no
delinquent taxes, penalties or interest due on such Base Real Property
according to the records of such taxing unit, or (ii) other evidence
reasonably satisfactory to each of the Purchasers that there are no delinquent
taxes, penalties or interest due on such Base Real Property.
(S) 4.9 Prior Delivery of Evidence of Property Insurance. Before the Closing
Date, the Trust shall have delivered to each of you a certificate or
certificates of insurance, in form satisfactory to each of you, evidencing that
the Trust is insured against those risks described in Exhibit Q with respect to
each of the Initial Properties. At the Closing, such certiticate or certificates
shall collectively evidence, to the reasonable satisfaction of each of you, that
the Trust is in compliance with (S) 10.6.
(S) 4.10 Prior Execution and Delivery of the Mortgage, the Financing Statement
and the Other Instruments. Before the Closing Date:
(a) the Trust shall have executed, acknowledged and delivered to each of you
multiple counterparts of the Mortgage dated to be effective on the Closing
Date, substantially in the form of Exhibit G (with such changes therein, if
any, as shall have been approved by the Trust and each of you), with
Attachment A thereto completed to include a sufficient legal description of
each of the Initial Sites, with Attachment B thereto completed to include a
sufficient description of each of the Initial Leases, and with Attachment C
thereto completed to include each of the Approved Encumbrances;
(b) the Trust shall have executed and delivered to your special counsel a
financing statement naming the Trust as debtor and each of you as a secured
party and otherwise in form and substance reasonably satisfactory to each of
you and to your special counsel; and
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(c) the Trust shall have executed and delivered to your special counsel such
other instruments as may be required to be recorded or filed to perfect, make
effective and establish, or to preserve the priority of, the Lien of the
Mortgage, each of such other instruments to likewise be in form and substance
reasonably satisfactory to each of you and to your special counsel.
(S) 4.11 Filing and Recordation. At the Closing:
(a) a counterpart of the Mortgage that was executed, acknowledged and
delivered pursuant to (S)4.10(a) shall have been filed in each of the
Official Public Records of Real Property of Harris County, Texas, and in the
Official Records of Fort Bend County, Texas;
(b) the Financing Statement shall have been f1led in the Uniform Commercial
Code Records of the Secretary of State of the State of Texas;
(c) a counterpart of each Subordination Agreement that was executed,
acknowledged and delivered pursuant to (S)4.8(j) for any Lease with respect to
any Center located in Harris County, Texas, shall have been filed in the
Official Public Records of Real Property of Harris County, Texas, and a
counterpart of each Subordination Agreement that was executed, acknowledged
and delivered pursuant to (S)4.8(j) for any Lease with respect to any Center
located in Fort Bend County, Texas, shall have been filed in the Official
Records of Fort Bend County, Texas;
(d) each of the Other Instruments shall have been recorded or filed in such
manner and in such places as may be required to perfect, make effective and
establish, or to preserve the priority of, the Lien of the Mortgage;
(e) all taxes, fees and other charges imposed with respect to the recording
or filing of any of the documents referred to in (S) 4.11(a), (b), (c) or (d)
shall have been paid by or on behalf of the Trust; and
(f) each of you shall have received evidence of the recording or filing of
each of the documents referred to in (S)4.11(a), (b), (c) and (d) and of the
payment of the taxes, fees and other charges referred to in (S)4.11(e).
(S)4.12 Execution and Delivery of Guaranty Agreements by Current Subsidiaries.
At the Closing, each of the Current Subsidiaries (other than Weingarten
Properties Trust) shall have delivered to each of you:
(a) a counterpart of an Agreement of Guaranty dated the Closing Date,
executed by such Current Subsidiary, and substantially in the
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form of Exhibit H (with such changes therein, if any, as shall have been
approved by such Current Subsidiary and each of you); and
(b) a certificate of the Secretary of such Current Subsidiary dated the
Closing Date, substantially in the form of Exhibit I, with appropriate
insertions as indicated in such form, and certifying (i) the incumbency of the
officer of such Current Subsidiary who executes such Agreement of Guaranty on
behalf of such Current Subsidiary, (ii) the adoption by the Board of Directors
of such Current Subsidiary of resolutions, in the form attached to such
certificate, (x) determining that the execution and delivery of such Agreement
of Guaranty will benefit, directly or indirectly, such Current Subsidiary and
(y) authorizing the execution and delivery of such Agreement of Guaranty by
such Current Subsidiary, and (iii) that such resolutions have not been amended
or rescinded by the Board of Directors of such Current Subsidiary since the
date of their adoption, which date shall be specified in such certificate, and
are in full force and effect at the Closing Date.
(S)4.13 Prior Delivery of Search Certificate. Before the Closing Date, the
Trust shall have delivered to your special counsel a certificate of Capitol
Services, Inc. stating that, as of a date not more than five Business Days
before the Closing Date, there was no financing statement on file in the Uniform
Commercial Code Records of the Secretary of State of the State of Texas that (i)
named the Trust as debtor and (ii) identified as collateral any part of any of
the Initial Centers or any Additional Rights with respect to any Initial Center.
(S)4.14 Execution and Delivery of Indemnity Agreements. At the Closing, the
Trust shall have executed and delivered to each of you multiple counterparts of:
(a) an Indemnity Agreement dated the Closing Date and substantially in the
form of Exhibit X (with such changes therein, if any, as shall have been
approved by the Trust and each of you); and
(b) an Indemnity Agreement dated the Closing Date and substantially in the
form of Exhibit Y (with such changes therein, if any, as shall have been
approved by the Trust and each of you).
(S)5 Conditions to Each Funding. Your respective obligations to purchase Notes
of any series is subject to the fulfillment, to the satisfaction of each of you,
of the following conditions:
(S)5.1 Representations and Warranties True as of Funding. The representations
and warranties of the Trust contained in this Agreement shall be true and
correct at the Funding for Notes of that series with the same effect as though
made at such Funding.
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(S) 5.2 Performance; No Default. At the Funding for Notes of that series, (i)
the Trust shall have performed and complied with all agreements and conditions
contained in this Agreement that are required to be performed or complied with
by the Trust before or at such Funding and (ii) no Event of Default or Potential
Event of Default shall exist.
(S) 5.3 Certificates. At the Funding for Notes of that series, the Trust shall
have delivered to each of you:
(a) an Officers' Certificate dated the Funding Date for Notes of that
series, substantially in the form of Exhibit J, with appropriate insertions as
indicated in such form, and certifying that the conditions specified in
(S)(S) 5.1 and 5.2 have been fulfilled;
(b) a certificate of the Secretary of the Trust dated such Funding Date,
substantially in the form of Exhibit K, with appropriate insertions as
indicated in such form, and certifying (i) the incumbency of each of the
officers of the Trust who (x) executed the Officers' Certificate delivered
pursuant to (S) 3(a) pursuant to which the Trust notified each Purchaser of
the intention of the Trust to issue and sell Notes of that series or (y)
executes and delivers on behalf of the Trust (1) each Note that is being
issued and sold on such Funding Date and (2) each document that the Trust is
required by this Agreement to execute and deliver as a condition to your
respective obligations to purchase Notes of that series and (ii) that the
resolutions adopted by the Board of Trust Managers of the Trust and attached
to the certificate delivered pursuant to (S) 4.3(b) have not been amended or
rescinded by the Board of Trust Managers of the Trust and are in full force
and effect at such Funding Date; and
(c) a certificate of the Secretary of the Trust dated such Funding Date,
substantially in the form of Exhibit F, with appropriate insertions as
indicated in such form, and certifying that (i) the copy of the Trust's
Restated Declaration of Trust certified by the County Clerk of Harris County,
Texas, and attached to such certificate is a true and complete copy of such
Declaration of Trust as in effect at such Funding Date and (ii) the copy of
the bylaws of the Trust attached to such certif1cate is a true and complete
copy of such bylaws as in effect at that date.
(S) 5.4 Legal Investment. On the Funding Date for Notes of that series:
(a) your respective purchases of Notes pursuant to this Agreement (i) shall
not be prohibited by any applicable law or governmental regulation (including,
without limitation, Regulation G, T, U or X of the Board of Governors of the
Federal Reserve System), (ii) shall not subject any of you to any penalty or,
in your respective reasonable judgments, any other onerous condition under any
applicable law or governmental regulation, and (iii) shall be permitted by the
laws and governmental regulations of the
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jurisdictions to which you, respectively, are subject, without recourse to
provisions (such as Article 3.33 Sec. 4(o) of the Texas Insurance Code)
permitting limited investments by life insurance companies in securities not
otherwise legally eligible for investment; and
(b) the Trust shall have delivered to each of you, if requested by any of
you at least two Business Days before such Funding Date, an Officers'
Certificate dated such Funding Date, satisfactory in form and substance to you
and your special counsel, and certifying to such matters of fact as any of you
may request to determine fulfillment of the condition specified in (S) 5.4(a).
(S) 5.5 Compliance with Securities Laws. At the Funding for Notes of that
series, (i) the offering of the Notes shall have complied with all applicable
requirements of Federal and state securities laws, and (ii) each of you shall
have received such evidence of compliance, in form and substance satisfactory to
each of you, as any of you may request.
(S) 5.6 Proceedings and Documents. At the Funding for Notes of that series,
(i) all proceedings in connection with the transactions contemplated by this
Agreement and all documents incident to such transactions shall be satisfactory
to each of you, and (ii) each of you shall have received such counterpart
originals or certified or other copies of such documents as any of you may
reasonably request.
(S) 5.7 Legal Fees. At the Funding for Notes of that series, the Trust shall
have paid the reasonable fees, expenses and disbursements of your special
counsel, Fulbright & Jaworski L.L.P., incurred through the Funding Date for
Notes of that series in connection with this Agreement and the transactions
contemplated hereby.
(S) 5.8 Opinion of Counsel for the Trust. At the Funding for Notes of that
series, each Purchaser that has given a notice pursuant to (S) 3(d) stating that
such Purchaser intends to purchase a principal amount of Notes of that series
shall have received the opinion of Andrews & Kurth L.L.P., counsel to the Trust,
which opinion shall (i) be dated the Funding Date for Notes of that series, (ii)
be addressed to such Purchaser, and (iii) be substantially in the form of
Exhibit L.
(S) 5.9 Opinion of Your Special Counsel. At the Funding for Notes of that
series, each Purchaser that has given a notice pursuant to (S) 3(d) stating that
such Purchaser intends to purchase a principal amount of Notes of that series
shall have received the opinion of Fulbright & Jaworski L.L.P., your special
counsel, which opinion shall (i) be dated the Funding Date for Notes of that
series, (ii) be addressed to such Purchaser, (iii) be substantially in the form
of Exhibit M, and (iv) address such other legal matters with respect to the
transactions contemplated by this Agreement as any of you may reasonably
request.
(S) 5.10 Supplemental Title Opinions. At the Funding for Notes of that series,
the Trust shall deliver to each of you:
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(a) an abstractor's search certificate (i) covering the Base Real Property
with respect to each Mortgaged Center, (ii) stating a search period from the
day preceding the last day of the search period stated in the abstractor's
search certificate covering such Base Real Property that was delivered
pursuant to (S)4.8(b) to and including a date not more than 15 days before
the Funding Date for Notes of that series, and (iii) identifying each document
that affects such Base Real Property and was filed of record during such
search period;
(b) a name search certificate issued by Stewart Title Company stating that,
as of a date not more than 15 days before the Funding Date for Notes of that
series, there was no record on file in the Office of the County Clerk of
Harris County, Texas, or in the office of the County Clerk of Fort Bend
County, Texas, of any abstract of judgment, federal lien or state tax lien
with respect to which the Trust is the debtor; and
(c) a Title Opinion with respect to each Mortgaged Center, which Title
Opinion shall be (i) dated the Funding Date for Notes of that series and (ii)
addressed to each of you.
(S) 5.11 Prior Fulfillment of Conditions to the Closing. Before the Funding
for Notes of that series, each of the conditions contained in (S) 4 shall have
been fulfilled to the satisfaction of each Purchaser.
(S) 6 Representations and Warranties of the Trust. The Trust represents and
warrants to each of you that:
(S) 6.1 Organization of the Trust. The Trust has been duly organized as a real
estate investment trust under the Texas Real Estate Investment Trust Act, is
validly existing and in good standing under the laws of the State of Texas, and
has all requisite power and authority to own and operate its properties, to
carry on its business as now conducted and as proposed to be conducted, to enter
into and perform its obligations under each of this Agreement and the Mortgage,
to enter into the Amendment, to perform its obligations under the Amended Senior
Secured Note Agreement, and to issue and sell the Notes.
(S) 6.2 Tax Status of the Trust. For each taxable year or portion thereof
since the date of its organization, and for the current taxable year, the Trust
has satisfied the requirements of the Code to be taxed as a "real estate
investment trust", within the meaning of section 856 of the Code.
(S) 6.3 Qualification. The Trust is duly qualified to transact business and is
in good standing as a foreign real estate investment trust, and each Subsidiary
is duly qualified to transact business and is in good standing as a foreign
corporation, in each jurisdiction where its ownership, leasing or operation of
properties or the conduct of its business requires such qualification, except
where the failure to be so qualified would not, either individually or in the
aggregate, have a material adverse effect on the
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business, condition (financial or otherwise), assets, or operations of the Trust
and the Subsidiaries, taken as a whole.
(S)6.4 Business. The Trust has delivered to each of you complete and correct
copies of (i) its Annual Report on Form 10-K for each of its fiscal years ended
December 31, 1990, 1991, 1992 and 1993, as filed with the Commission, (ii) its
Annual Report to Shareholders for the fiscal year ended December 31, 1993, (iii)
the Proxy Statement for its annual meeting of Shareholders held April 28, 1994,
and (iv) its Quarterly Report on Form 10-Q for the fiscal quarter ended March
31, 1994. The Trust's Annual Report on Form 10-K for its fiscal year ended
December 31, 1993, such Annual Report to Shareholders, such Proxy Statement and
such Quarterly Report on Form 10-Q, taken together, correctly describe, in all
material respects as of the respective dates thereof, the business conducted or
proposed to be conducted by the Trust.
(S)6.5 Financial Statements. The f1nancial statements included in any of the
Annual Reports on Form 10-K that are referred to in (S)6.4, and the financial
statements included in the Quarterly Report on Form 10-Q that is referred to in
(S)6.4, have (except as otherwise specified therein) been prepared in
accordance with GAAP applied on a consistent basis throughout the periods
specified and present fairly the consolidated f1nancial position of the Trust
and the Subsidiaries on the respective dates specif1ed and the results of
operations and changes in f1nancial position of the Trust and the Subsidiaries
for the respective periods specif1ed.
(S)6.6 Chances. Since December 31, 1993, there has been no Material
Development and there has been no material adverse change in the business,
condition (f1nancial or otherwise), assets, or operations of the Trust and the
Subsidiaries, taken as a whole. During the period from December 31, 1993, to the
Closing Date, the Trust did not, directly or indirectly, declare, order, pay or
set apart for distribution any amount (whether in cash, property or securities)
on any shares of beneficial interest in the Trust, except regular quarterly cash
dividends, the aggregate amount of which did not exceed $29,684,500.
(S)6.7 Tax Returns and Payments. The Trust and the Subsidiaries have filed
all tax returns required by law to be filed and have paid all taxes, assessments
and other governmental charges or levies upon the Trust, the Subsidiaries or any
of their respective properties, assets, income or franchises that are due and
payable and the failure to file or pay which would have a material adverse
effect on the business, condition (financial or otherwise), assets, or
operations of the Trust and the Subsidiaries, taken as a whole. The Federal
income tax liability of the Trust and the Subsidiaries has been finally
determined by the Internal Revenue Service and satisfied, or the time for audit
has expired, for all fiscal periods through the fiscal year ended December 31,
1989. To the knowledge of each of the Executive Officers after due inquiry, the
charges, accruals and reserves on the books of the Trust in respect of Federal,
state and foreign income taxes for all fiscal periods are adequate in all
material respects, and the Trust knows of no unpaid assessments for additional
Federal, state or foreign income taxes for any period or any basis for any such
assessment the
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payment of which would have a material adverse effect on the business, condition
(financial or otherwise), assets, or operations of the Trust and the
Subsidiaries, taken as a whole. No extension of time for the assessment of
deficiencies for Federal or state income taxes of the Trust or any Subsidiary is
in effect.
(S)6.8 Indebtedness. Exhibit N correctly states, as of March 31, 1994, by
title, principal amount, scheduled f1nal maturity date, and identity of the
holder or holders thereof, each item of Indebtedness for Borrowed Money of the
Trust or any Subsidiary outstanding on such date or for which the Trust or any
Subsidiary has any commitment. Neither the Trust nor any Subsidiary is (i) in
payment default under the provisions of any instrument evidencing Indebtedness
for Borrowed Money or any agreement relating thereto, (ii) in default under any
financial covenant contained in any instrument evidencing Indebtedness for
Borrowed Money, or (iii) in default under any other provision of any instrument
evidencing Indebtedness for Borrowed Money or any agreement relating thereto as
would, individually or in the aggregate, have a material adverse effect on the
business, condition (financial or otherwise), assets, or operations of the Trust
and the Subsidiaries, taken as a whole. Except as described in such Exhibit,
neither the Trust nor any Subsidiary is a party to, or bound by, any instrument
or agreement (except this Agreement) providing for the issuance of any
Indebtedness for Borrowed Money and that contains any restriction on the
incurrence by the Trust or any Subsidiary of any additional Indebtedness for
Borrowed Money.
(S)6.9 Title to Other Assets. The Trust and each Subsidiary has good and
indefeasible title to its Other Assets, except such defects in title as would
not have a material adverse effect on the business, condition (financial or
otherwise), assets, or operations of the Trust and the Subsidiaries, taken as a
whole. Those Other Assets of the Trust and the Subsidiaries include, without
limitation, the assets reflected in the consolidated balance sheet of the Trust
and the Subsidiaries as of December 31, 1993, other than assets disposed of in
the ordinary course of business. The Other Assets of the Trust and the
Subsidiaries are free and clear of all Liens that secure the payment of
Indebtedness, except (i) those Liens described in Exhibit O and (ii) other Liens
that do not materially and adversely impair the use or value of such Other
Assets in the operation of business of the Trust and the Subsidiaries, taken as
a whole. The Trust enjoys peaceful and undisturbed possession under all leases
(including, without limitation, ground leases) necessary in any material respect
for the operation of its business; none of such leases contains any unusual
provision that might materially and adversely affect or impair the operation of
the business of the Trust and the Subsidiaries, taken as a whole; and all of
such leases are valid and subsisting and in full force and effect, except leases
the termination of which would not individually or in the aggregate have a
material adverse effect on the operations of the Trust and the Subsidiaries,
taken as a whole. All leases to which the Trust or any Subsidiary is a party,
either as lessor or as lessee, are valid and enforceable and are in full force
and effect, except leases the unenforceability of which would not individually
or in the aggregate have a material adverse effect on the operations of the
Trust and the Subsidiaries, taken as a whole, and neither the Trust nor any
Subsidiary is in default under any of such leases in any material respect,
except such defaults as would not individually or in the aggregate have a
material adverse effect on the Trust and the
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Subsidiaries, taken as a whole. None of such leases contains any unusual
provisions that might materially and adversely affect or impair the operations
of the business of the Trust and the Subsidiaries, taken as a whole.
(S) 6.10 Litigation. There is no action, proceeding or investigation pending
or, to the knowledge of each of the Executive Officers, threatened (or any basis
therefor known to the Trust) against the Trust or any Subsidiary that (i)
questions the validity or legality of, seeks damages in connection with, or
seeks to enjoin or otherwise restrain the performance of, any Transaction
Document, or any action taken or to be taken pursuant to any Transaction
Document, or (ii) may reasonably be expected to (x) result in any material
adverse change in the business, condition (financial or otherwise), assets, or
operations of the Trust or the Trust and the Subsidiaries, taken as a whole, (y)
result in any liability on the part of the Trust or any Subsidiary that would be
material to the Trust or the Trust and the Subsidiaries, taken as a whole, or
(z) have a materially adverse effect on the ability of the Trust or any
Subsidiary to perform its obligations under any Operative Document to which it
is a party.
(S)6.11 Compliance With Other Instruments.
(a) Neither the Trust nor any Subsidiary is in violation of (i) any term of
its declaration of trust or certificate or articles of incorporation, as the
case may be, or its bylaws or (ii) any term of (x) any agreement or instrument
to which it is a party or by which it or any of its properties is bound, (y) any
applicable law, ordinance, rule or regulation or (z) any applicable order,
judgment or decree of any court, arbitrator or governmental authority
(including, without limitation, any Environmental Law or any law, ordinance,
rule, regulation or order relating to occupational health and safety standards
or to equal employment practice requirements), the consequences of which
violation may reasonably be expected to have a material adverse effect on the
business, condition (financial or otherwise), assets, or operations of the Trust
and the Subsidiaries, taken as a whole, or on the Trust's status as a "real
estate investment trust", within the meaning of section 856 of the Code.
(b) Neither the execution and delivery of this Agreement, the Amendment, the
Mortgage, the Notes, the Financing Statement or any Guaranty Agreement, nor the
consummation of the transactions contemplated hereby or thereby, will (i) result
in any breach or violation of or constitute a default under any term of (w) the
declaration of trust or certificate or articles of incorporation, as the case
may be, or bylaws of the Trust or of any Subsidiary, (x) any material agreement
or instrument to which the Trust or any Subsidiary is or will be a party or by
which it or any of its properties is bound, (y) any applicable law, ordinance,
rule or regulation or (z) any applicable order of any court, arbitrator or
governmental authority, or (ii) result in the creation of (or impose any
obligation on the Trust or any Subsidiary to create) any Lien (other than the
Lien of the Mortgage) upon any of the properties of the Trust or any Subsidiary.
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(S)6.12 Consents.
(a) The Trust is not required to obtain any consent, approval or authorization
of, or to make any declaration or filing with, any governmental authority as a
condition to the valid execution or delivery of this Agreement, the Amendment,
the Mortgage, the Notes or the Financing Statement or the consummation of the
transactions contemplated hereby or thereby.
(b) None of the Current Subsidiaries is required to obtain any consent,
approval or authorization of, or to make any declaration or filing with, any
governmental authority as a condition to the valid execution or delivery of the
Guaranty Agreement in which such Current Subsidiary is identified as the
Guarantor or the consummation of the transactions contemplated thereby.
(c) Neither the execution and delivery of this Agreement, the Amendment, the
Mortgage, the Notes, the Financing Statement, or any Guaranty Agreement, nor the
consummation of the transactions contemplated hereby or thereby, require the
authorization, approval or consent of (i) any trustee or holder of Indebtedness
for Borrowed Money of the Trust or any Subsidiary or (ii) any other Person.
(S) 6.13 Authorization. Execution and Delivery. At the Closing and at the
Funding for Notes of any series, (i) the execution and delivery by the Trust of
each of this Agreement, the Amendment, the Mortgage, and the Financing
Statement, and the issue and sale by the Trust pursuant to this Agreement of not
more than $30,000,000 aggregate principal amount of the Notes, shall have been
duly authorized by all necessary action of the Trust, (ii) the execution and
delivery by each of the Current Subsidiaries (other than Weingarten Properties
Trust) of the Guaranty Agreement in which such Current Subsidiary is identified
as the Guarantor shall have been duly authorized by all necessary action of such
Current Subsidiary, (iii) each of this Agreement, the Amendment, the Mortgage
and the Financing Statement shall have been duly executed and delivered by the
Trust and shall be in full force and effect, (iv) each of this Agreement, the
Amendment and the Mortgage shall constitute a legal, valid and binding
obligation of the Trust that is enforceable against the Trust in accordance with
its terms, and (v) each of the Guaranty Agreements referred to in (S)4.12 shall
have been duly executed and delivered by the Current Subsidiary identified
therein as the Guarantor, shall be in full force and effect, and shall
constitute a legal, valid and binding obligation of such Current Subsidiary that
is enforceable against such Current Subsidiary in accordance with the terms of
such Guaranty Agreement. At the Funding for Notes of any series, (i) the
execution and delivery by the Trust of the Note or Notes of that series that are
being issued and sold at that Funding shall have been duly authorized by all
necessary action of the Trust and (ii) such Note or Notes shall have been duly
executed and delivered by the Trust, shall be in full force and effect, and
shall constitute legal, valid and binding obligations of the Trust that are
enforceable against the Trust in accordance with their respective terms.
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(S)6.14 Broker's Fees. No broker's or finder's fee or commission will be
payable with respect to the execution and delivery of this Agreement, the
Amendment or the Notes or the consummation of the transactions contemplated
hereby or thereby (other than fees or commissions that may be payable by one or
more of the Purchasers solely as a result of its own actions). The Trust hereby
agrees to indemnify each of you against, and to hold each of you harmless from,
any claim, demand or liability asserted against any of you for broker's or
finder's fees or commissions alleged to have been incurred in connection with
the execution and delivery of this Agreement, the Amendment or the Notes or the
consummation of the transactions contemplated hereby or thereby (other than fees
or commissions that may be payable by one or more of the Purchasers solely as a
result of the action of one or more of the Purchasers).
(S)6.15 Use of Proceeds. The Trust will use the proceeds of the sale of the
Notes solely for general business purposes of the Trust. The Trust shall not,
directly or indirectly, use any of the proceeds of the sale of the Notes in any
manner, or otherwise take or permit to be taken any action, that would cause the
issue and sale of the Notes or the consummation of any of the other transactions
contemplated hereby or thereby to be a violation of Regulation G, T, U or X of
the Board of Governors of the Federal Reserve System or of any other regulation
of such Board.
(S)6.16 Investment Company. Neither the Trust nor any Subsidiary is an
"investment company", or a company "controlled" by an "investment company", as
such terms are defined in the Investment Company Act of 1940, as amended.
(S)6.17 Public Utility Holding Company. Neither the Trust nor any Subsidiary
is a "holding company", or a "subsidiary company" of a "holding company", or an
"affiliate" of a "holding company" or of a "subsidiary company" of a "holding
company", as such terms are defined in the Public Utility Holding Company Act of
1935, as amended.
(S)6.18 Compliance With ERISA.
(a) Prohibited Transactions. Neither the Trust nor any Subsidiary has engaged
in a transaction that would subject the Trust or such Subsidiary to a material
liability for a civil penalty assessed pursuant to Section 502(i) of ERISA or a
tax imposed by section 4975 of the Code.
(b) Plan Termination; Material Liabilities. No Plan, and no trust created
under any Plan, has been terminated. No material liability of the Trust or any
Subsidiary to the Pension Benefit Guaranty Corporation has been or is expected
to be incurred with respect to any Plan. To the knowledge of each of the
Executive Officers, the Pension Benefit Guaranty Corporation has not instituted
proceedings to terminate any Plan. There has been no "reportable event", within
the meaning of Section 4043(b) of ERISA, with respect to any Plan that is
reasonably likely to present a material risk of termination or partial
termination of such Plan by the Pension Benef1t Guaranty Corporation.
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April 1, 1994
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(c) Accumulated Funding Deficiency. Full payment has been made of all amounts
that the Trust or any Subsidiary, or any of their respective related Persons, is
required under the terms of any Plan to have paid as contributions to such Plan
as of the last day of the most recent fiscal year of such Plan, and no
"accumulated funding deficiency", within the meaning of Section 302 of ERISA or
section 412 of the Code, whether or not waived, exists with respect to any Plan.
(d) Relationship of Benefits to Plan Assets. As of December 31, 1993, the
value of the total vested and unvested accumulated benefit obligation under each
Plan did not exceed the current value of the assets of such Plan allocable to
such total accumulated benefit obligation. Since December 31, 1993, there has
been no material adverse change in the overall financial position of any Plan
and no material increase in benefits under any Plan that could cause the value
of the total vested and unvested accumulated benefit obligation under such Plan
to exceed the current value of the assets of such Plan allocable to such total
accumulated benef1t obligation. The term "current value" has the meaning
specified in Section 3 of ERISA. The term "accumulated benefit obligation" has
the meaning specified in and shall be determined in accordance with Statement of
Financial Accounting Standards No. 87.
(e) Execution of Agreement; Purchase and Sale of Notes. The execution and
delivery of this Agreement, the Amendment, the Mortgage and the Notes and the
consummation of the transactions contemplated hereby and thereby will not
involve any prohibited transaction with respect to any "employee benefit plan"
within the meaning of Section 3 of ERISA with respect to which the Trust or any
Subsidiary is a "party in interest" within the meaning of Section 3 of ERISA or
a "disqualified person" within the meaning of section 4975 of the Code. The
representation in the preceding sentence is made in part in reliance upon and
subject to the accuracy of each Purchaser's representation in (S)7.2 as to the
source of funds used to purchase the Notes to be purchased by that Purchaser.
(f) Multiemployer Plans. Neither the Trust nor any Subsidiary maintains any
Multiemployer Plans, and neither the Trust nor any Subsidiary has incurred or is
reasonably likely to incur any material withdrawal liability pursuant to Section
4201 of ERISA.
(g) Compliance with Applicable Laws. Each of the Plans is in compliance in all
material respects with applicable Federal laws including, but not limited to,
ERISA, and, to the knowledge of each of the Executive Officers, there are no
claims pending or threatened by any Plan participant (or any basis to anticipate
any such claim or claims) that would materially and adversely affect the
financial position of any Plan or of the Trust and the Subsidiaries, taken as a
whole.
(S)6.19 Certain Regulations. Neither the sale of the Notes nor the use by the
Trust of the proceeds thereof will violate:
(a) any of the following regulations of the United States Treasury
Department (31 C.F.R., Subtitle B, Chapter V, as amended): the
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Page 22
Foreign Assets Control Regulations, the Transaction Control Regulations, the
Cuban Assets Control Regulations, the Foreign Funds Control Regulations, the
Iranian Assets Control Regulations, the Libyan Sanctions Regulations, the
Nicaraguan Trade Control Regulations, the South African Transactions
Regulations, the Soviet Gold Coin Regulations, the Iranian Transaction
Regulations, the Panamanian Transactions Regulations, the Iraqi Sanctions
Regulations or the Haitian Transaction Regulations; or
(b) any of the following statutes or Executive Orders: the Comprehensive
Anti-Apartheid Act of 1986 (22 U.S.C. Chapter 60 (1992)), Executive Orders
12722 and 12724 (55 Fed. Reg. 31803 and 55 Fed. Reg. 33089, respectively)
Blocking Iraqi Government Property and Prohibiting Transactions With Iraq,
Executive Orders 8389, 9193, 12543, 12544 or 12801 (Libya), or Executive
Orders 12775 or 12779 (Haiti).
To the knowledge of each of the Executive Officers, the Trust is not controlled
by any Person that is not a citizen, or incorporated under the laws of a
jurisdiction, of the United States of America.
(S)6.20 Disclosure. None of the Transaction Documents, and (to the knowledge
of each of the Executive Officers) none of the Operative Documents that do not
constitute Transaction Documents, contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements
contained therein not misleading. Except as described in the Trust's Annual
Report on Form 10-K for the fiscal year ended December 31, 1993, there is no
fact known to the Trust that materially adversely affects, or that might
reasonably be expected to have a material adverse effect on, the business,
condition (financial or otherwise), assets, or operations of the Trust and the
Subsidiaries, taken as a whole.
(S)6.21 Compliance With Laws. The Trust and the Subsidiaries have conducted
and are now conducting their respective businesses and operations in compliance
with all applicable governmental laws, rules, regulations and ordinances to
which they may be subject, including all Environmental Laws, and the failure to
comply with which would materially and adversely affect the business, condition
(financial or otherwise), assets, or operations of the Trust and the
Subsidiaries, taken as a whole.
(S)6.22 Offer of Notes. Neither the Trust nor any one acting on its behalf
has directly or indirectly offered any of the Notes or any similar securities
for sale to, or solicited any offer to buy any of the same from, or otherwise
approached or negotiated in respect thereof with, any one other than each of
you. Neither the Trust nor any Person acting on behalf of the Trust will (i)
offer any of the Notes or any similar securities for sale to, or solicit any
offer to buy any of the same from, or otherwise approach or negotiate in respect
thereof with, any Person or (ii) take any other action that would subject the
issuance or sale of the Notes to registration under the provisions of Section 5
of the Securities Act.
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April 1, 1994
Page 23
(S)6.23 Insurance. The Trust maintains, for itself and the Subsidiaries,
insurance covering such risks and in such amounts as is customarily carried by
corporations and real estate investment trusts of established reputation in the
same or similar business and similarly situated.
(S)6.24 Environmental Matters. Except as otherwise specifically disclosed in
the Environmental Report, to the knowledge at the Closing Date of each of the
Executive Officers:
(a) all operations conducted on any Mortgaged Center have been conducted in
compliance with applicable Environmental Laws;
(b) neither the Trust nor any other Person has caused or allowed the release
or disposal of Hazardous Materials onto, at or in close proximity to any
Mortgaged Center;
(c) neither the Trust nor any other Person has received any inquiry or notice,
nor does the Trust have any reason to believe it or any other Person will
receive any inquiry or notice, of any actual or potential proceeding, claim,
lawsuit or loss that relates to any Mortgaged Center and arises under or relates
to any of the Environmental Laws;
(d) none of the operations that are being conducted on any Mortgaged Center
are operating or required to be operating under any compliance order, schedule,
decree or agreement, any consent decree, order or agreement, or any corrective
action decree, order or agreement issued or entered into under any Environmental
Laws;
(e) neither the Trust nor any other Person has caused or allowed the
generation, use, treatment, storage, processing or other handling of Hazardous
Materials in connection with any operations conducted on any Mortgaged Center,
except for generation, use, treatment, storage or disposal permitted by, and
conducted in accordance with, applicable Environmental Laws;
(f) no asbestos or polychlorinated biphenyl is present on any Mortgaged
Center;
(g) no underground storage tank is present on any Mortgaged Center, and any
underground storage tanks previously removed from any Mortgaged Center were
removed in accordance with applicable Environmental Laws;
(h) no property adjoining or adjacent to any Mortgaged Center was used at any
time for the generation, use, treatment, storage, processing or other handling
of Hazardous Materials in violation of any of the Environmental Laws; and
(i) there is no existing state of facts with respect to any Mortgaged Center
that might reasonably be expected to cause the owner of such Mortgaged Center
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April 1, 1994
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to incur any loss, liability, damage, cost or expense for matters arising under
or related to any of the Environmental Laws.
(S)6.25 Subsidiaries. Exhibit P states the name and jurisdiction of
organization of each Person that constitutes a Subsidiary at the Closing Date.
Each of the Current Subsidiaries has been duly organized under the laws of its
jurisdiction of organization, is validly existing and in good standing under
those laws, and has all requisite power and authority to own and operate its
properties, to carry on its business as now conducted and as proposed to be
conducted, and to enter into and perform its obligations under the Guaranty
Agreement to which such Current Subsidiary is or is to be a party.
(S)6.26 Title Matters.
(a) To the knowledge of each of the Executive Officers, the Trust has good and
indefeasible title to each Initial Center, subject only to (i) Approved
Encumbrances with respect to such Initial Center and (ii) one or more of the
Permitted Encumbrances with respect to such Initial Center that were created
after the date such Initial Center first became a Mortgaged Center.
(b) There is no Lien on any Initial Center that was created by, through or
under the Trust, other than (i) Approved Encumbrances with respect to such
Initial Center and (ii) one or more of the Permitted Encumbrances with respect
to such Initial Center that were created after the date such Initial Center
first became a Mortgaged Center.
(c) Assuming that on the Closing Date the Trust has good and indefeasible
title to each Initial Center, subject only to Approved Encumbrances with respect
to such Initial Center, the Mortgage will create to secure the payment of the
Obligations (i) a first priority lien on each Initial Center, (ii) a first
priority assignment of all Rents with respect to each Initial Center, and (iii)
a first priority security interest in the Additional Rights with respect to each
Initial Center (other than the Rents with respect to such Center).
(S)6.27 Value of Initial Centers. None of the Executive Officers is aware at
the Closing Date of any development (excluding economic or other similar
conditions affecting shopping centers generally) with respect to any Initial
Center that, in such Executive Officer's reasonable good faith judgment, would
cause the sum of the respective Market Values of the Initial Centers at the
Closing Date to be less than $46,550,000.
(S)6.28 Initial Leases and Material Contracts. On the Closing Date:
(a) the Initial Leases (i) constitute all of the leases, subleases (other
than subleases to which the Trust is not a party), licenses or other
agreements for the use or occupancy of any Initial Center or any part
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To the Purchasers
April 1, 1994
Page 25
thereof and (ii) include any guaranty of any obligation of the lessee under
any of such leases, subleases, licenses or other agreements;
(b) the Trust has not entered into any assignment or pledge of (i) any rents
payable pursuant to any Initial Lease or (ii) any right of the Trust as lessor
under any Initial Lease, except, in each case, assignments or pledges that
were released by the assignee or pledgee before the Closing Date;
(c) each of the Initial Leases is a legal, valid and binding obligation of
the lessee or guarantor named therein and is in full force and effect;
(d) no default exists in the payment of rent that is more than 60 days past
due pursuant to any Initial Lease that is an Anchor Lease with respect to any
Initial Center;
(e) except for (i) payments of not more than 30 days advance rent, (ii)
security deposits or (iii) deposits in the amount of the last month's rent,
the Trust has not received from any lessee named in any Initial Lease any
funds or deposits (other than funds paid to the Trust for the construction of
tenant improvements) in respect of such Initial Lease for which credit has not
already been made on account of accrued rents;
(f) each Material Contract with respect to an Initial Center is (i) a legal,
valid and binding obligation of the Trust and each of the other Persons
identified therein as a party thereto and (ii) in full force and effect;
(g) each Tenant Certificate delivered pursuant to (S)4.8(i) is in full
force and effect; and
(h) each Subordination Agreement delivered pursuant to (S)4.8(j) is in full
force and effect.
(S)7 Representations of the Purchasers.
(S)7.1 Purchase for Investment. Each Purchaser represents that it is
purchasing the Notes to be purchased by it for its own account for investment.
Each Purchaser further represents that it is an "accredited investor", as such
term is defined in Regulation D promulgated by the Commission pursuant to the
Securities Act, and that it will not dispose of the Notes to be purchased by it
in a manner that would violate the registration requirements of Section 5 of the
Securities Act or any applicable state securities or blue sky law.
(S)7.2 Source of Funds. Each Purchaser represents that no part of the funds
that it will use to purchase Notes pursuant to this Agreement constitutes assets
allocated to any separate account maintained by such Purchaser in which any
employee
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To the Purchasers
April 1, 1994
Page 26
benefit plan (or its related trust) has any interest. As used in this (S)7.2,
the terms "employee benefit plan" and "separate account" have the respective
meanings assigned to such terms in Section 3 of ERISA.
(S)8 Optional Prepayment of Notes.
(S)8.1 Restriction on Prepayment of Notes. Except as hereinafter provided in
this (S)8, the Trust shall not have the right to pay all or any portion of the
principal amount of any Note before the time the same shall become due and
payable pursuant to this Agreement.
(S)8.2 Prepayment at Option of the Trust. On any Payment Date for Notes of any
series, the Trust may, at its option, subject to the restrictions contained in
(S)8.7 and after having timely given the notice required by (S)8.3, prepay all
or any portion of the aggregate unpaid principal amount of the outstanding Notes
of that series at a price equal to the sum of (i) the aggregate unpaid principal
amount of such Notes to be prepaid on that Payment Date, plus (ii) the Optional
Prepayment Premium for such prepayment.
(S)8.3 Notice of Optional Prepayment and Notice of Optional Prepayment
Premium. Not fewer than 30 days before any prepayment pursuant to (S) 8.2 of all
or any portion of the aggregate unpaid principal amount of the outstanding Notes
of any series, the Trust shall give each Holder written notice of such
prepayment, which notice shall specify (i) the Payment Date for Notes of that
series on which such prepayment will be made and (ii) the aggregate unpaid
principal amount of such Notes to be prepaid on that Payment Date. On the
Business Day immediately preceding that Payment Date, the Trust shall give each
Holder written notice of the Optional Prepayment Premium that is payable as a
result of such prepayment, which notice shall be accompanied by a statement of
the calculations made by the Trust to determine such Optional Prepayment
Premium.
(S)8.4 Maturity; Surrender. In the case of any prepayment pursuant to (S)8.2
of all or any portion of the aggregate unpaid principal amount of the
outstanding Notes of any series, the aggregate unpaid principal amount of such
Notes to be prepaid plus the Optional Prepayment Premium for such prepayment
shall become due and payable on the Payment Date specified in the notice of such
prepayment given pursuant to (S)8.3. After payment of the entire aggregate
unpaid principal amount of the outstanding Notes of any series, such Notes shall
be surrendered to the Trust and canceled and shall not be reissued. No Note
shall be issued in lieu of the prepaid principal amount of any Note.
(S)8.5 Interest on Past Due Principal to be Prepaid and on Past Due Optional
Prepayment Premium. If any portion of the aggregate unpaid principal amount of
such Notes to be prepaid or of such Optional Prepayment Premium is not paid on
such Payment Date, (i) such portion of such aggregate unpaid principal amount
shall bear interest (computed on the basis of a 360-day year of twelve 30-day
months) from such Payment Date until the date such portion is paid at a rate per
annum equal to the
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Default Rate for Notes of that series and (ii) such portion of such Optional
Prepayment Premium shall bear interest (computed on the basis of a 360-day year
of twelve 30-day months) from such Payment Date until the date such portion is
paid at a rate per annum equal to the Default Rate for Notes of that series.
Interest accrued and unpaid pursuant to the immediately preceding sentence shall
be due and payable on demand.
(S)8.6 Effect of Partial Prepayments on Monthly Installments. No prepayment
on any Payment Date for Notes of any series of less than the entire aggregate
unpaid principal amount of the outstanding Notes of that series shall relieve
the Trust of its obligation to pay (i) the Monthly Installment for each
outstanding Note of that series that is due and payable on such Payment Date or
(ii) subsequent Monthly Installments for each outstanding Note of that series at
the times and in the amounts required by (S)1.
(S)8.7 Restrictions on Partial Prepayments. Each prepayment pursuant to
(S)8.2 of less than the entire aggregate unpaid principal amount of the
outstanding Notes of any series shall be in an amount not less than $1,000,000
and shall be in integral multiples of $100,000.
(S)8.8 Allocation of Partial Prepayments. In the case of any prepayment
pursuant to (S)8.2 of less than the entire aggregate unpaid principal amount of
the outstanding Notes of any series, the aggregate unpaid principal amount of
such Notes to be prepaid and the Optional Prepayment Premium that is payable as
a result of such prepayment shall be allocated among the outstanding Notes of
that series in proportion, as nearly as practicable, to the respective unpaid
principal amounts of those Notes, with adjustments, to the extent practicable,
to compensate for any prior prepayments not made exactly in that proportion.
(S)9 Business and Financial Covenants of the Trust. The Trust covenants and
agrees that from the date of this Agreement and so long as any of the Notes
shall remain outstanding:
(S)9.1 Financial Statements and Other Reports. The Trust shall cause proper
books and records to be maintained so as to enable financial statements of the
Trust to be prepared in accordance with GAAP and will set aside on its books all
such proper accruals as shall be required by GAAP. The Trust shall deliver to
each Holder the following financial statements, reports and other information:
(a) As soon as practicable and in any event not more than 45 days after the
end of each of the first three fiscal quarters in each Fiscal Year, beginning
with the fiscal quarter ending June 30, 1994, either (i) if the Trust is not at
such time required to file reports with the Commission under Section 13 or 15 of
the Exchange Act an unaudited consolidated balance sheet of the Trust and the
Subsidiaries as of the end of such quarter and related consolidated statements
of income, shareholders' equity, a statement of cash flow and retained earnings
for such quarter, all in reasonable detail, in form comparative with the
corresponding period of the previous Fiscal Year, certified as complete and
correct in all material respects in conformity with
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To the Purchasers
April 1, 1994
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GAAP by the chief financial officer of the Trust, subject to changes resulting
from audit and normal year-end adjustments and accompanied by a discussion by
the management, in reasonable detail, of the Trust's operations during such
period which shall include a description of any Material Developments known to
management which shall have occurred during such period or (ii) if the Trust is
at such time required to file reports with the Commission under Section 13 or 15
of the Exchange Act, a copy of the Trust's report on Form 10-Q for such fiscal
quarter as filed with the Commission;
(b) as soon as practicable and in any event not more than 90 days after the
end of each Fiscal Year either (i) if the Trust is not at such time required to
file reports with the Commission under Section 13 or 15 of the Exchange Act
after the end of any Fiscal Year of the Trust, consolidated balance sheets of
the Trust and the Subsidiaries as at the end of such year and the related
consolidated statements of income, shareholders' equity, and cash flow of the
Trust and the Subsidiaries for such Fiscal Year, setting forth in each case in
comparative form the consolidated figures for the previous Fiscal Year and
accompanied by a report thereon of one of the six largest United States f1rms of
independent public accountants or such other independent public accountants of
recognized national standing selected by the Trust and satisfactory to each of
you, which report shall state that such consolidated financial statements
present fairly the financial position of the Trust as at the date indicated and
the results of their operations and changes in their financial position for the
period indicated in conformity with GAAP applied on a basis consistent with
prior years (except as otherwise stated therein) and that the audit by such
accountants in connection with such consolidated financial statements has been
made in accordance with generally accepted auditing standards and accompanied by
a discussion by the management of the Trust, in reasonable detail, of the
Trust's operations during such period which shall include a description of any
Material Development known to management which shall have occurred during the
last fiscal quarter of such period, or (ii) if the Trust is at such time
required to file reports with the Commission under Section 13 or 15 of the
Exchange Act, a copy of the Trust's Annual Report on Form 10-K for such Fiscal
Year as filed with the Commission;
(c) together with each delivery of information pursuant to subsections (a) or
(b) of this (S) 9.1, an Officers' Certificate dated not more than three days
before the delivery thereof and stating (i) that the persons executing such
certificate have reviewed the terms of each of the Transaction Documents and
have made, or caused to be made under their supervision, a review in reasonable
detail of the transactions and conditions of the Trust and the Subsidiaries
during the accounting period covered by such f1nancial statements and (ii) that
such review has not disclosed the existence during or at the end of such
accounting period, and that the signers do not have knowledge of the existence
as of the date of such Officers' Certificate, of any condition or event which
constitutes an Event of Default or Potential Event of Default, or, if any such
condition or event existed or exists, specifying the nature and period of
existence thereof and what action the Trust has taken, is taking or proposes to
take with respect thereto;
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April 1, 1994
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(d) together with each delivery of information pursuant to subsection (b) of
this (S)9.1, a written statement by the independent public accountants giving
their report thereon (i) stating that their audit examination has included a
review of the terms of this Agreement and the outstanding Notes as they relate
to accounting matters, (ii) stating whether, in the course of their audit
examination, there has been disclosed the existence during the fiscal year
covered by such financial statements (and stating whether they have knowledge of
the existence as of the date of such written statement) of any condition or
event that constitutes an Event of Default or Potential Event of Default, and
(iii) if, in the course of their audit examination, there has been disclosed (or
if they have knowledge of) such a condition or event, specifying the nature and
period of existence thereof;
(e) promptly upon receipt thereof by the Trust, copies of all written reports
submitted to the Trust by independent public accountants in connection with each
annual, interim or special audit of the books of the Trust made by such
accountants, including without limitation, any comment letter submitted by such
accountants to management in connection with their annual audit;
(f) promptly upon their becoming available, copies of (i) all statements,
reports, and proxy statements sent by the Trust to its holders of capital stock
and (ii) all regular and periodic reports and all registration statements and
prospectuses, if any, f1led by the Trust with the Commission, if not otherwise
furnished pursuant to subsection (a) or (b) of this (S)9.1;
(g) promptly after any of the Executive Officers obtains knowledge of any
condition or event which constitutes an Event of Default or Potential Event of
Default, an Officers' Certificate stating (i) the nature and period of existence
of such condition or event and (ii) what action the Trust has taken, is taking
or proposes to take with respect thereto;
(h) together with each delivery of information pursuant to subsections (a) or
(b) of this (S)9.1, if any of the Executive Officers shall have obtained
knowledge of any condition or event that, in the opinion of management of the
Trust, would have a material adverse effect on the business, condition
(financial or otherwise), assets, or operations of the Trust or of the Trust and
the Subsidiaries, taken as a whole, an Officers' Certificate stating (i) the
nature and period of existence of such condition or event and (ii) what action
the Trust has taken, is taking or proposes to take with respect thereto,
provided that during any period in which the Trust is required to file reports
with the Commission under Section 13 or 15 of the Exchange Act, the requirements
of this Subsection (h) shall be satisfied if, no later than the date on which
such report is filed with the Commission, the Trust shall deliver to each Holder
each Current Report on Form 8-K, Annual Report on Form 10-K or Quarterly
Form 10-Q that is so filed by the Trust;
(i) together with each delivery of information pursuant to subsections (a) or
(b) of this (S)9.1, if any Person shall have given written notice to the Trust
or any Subsidiary alleging any failure of the Trust or such Subsidiary to pay
any
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Page 30
part of the principal of, the premium, if any, or the interest on, or any other
amount payable pursuant to, one or more instruments evidencing Indebtedness for
Borrowed Money of the Trust or such Subsidiary the aggregate outstanding balance
of which is in excess of $1,500,000 (other than the Notes), or alleging any
failure of the Trust or any Subsidiary to perform or observe any other
agreement, term or condition contained in any document or documents evidencing
or securing the payment of any Indebtedness for Borrowed Money of the Trust or
such Subsidiary, or contained in any agreement under which any Indebtedness for
Borrowed Money of the Trust or any Subsidiary was issued or created, the effect
of which is to cause, or permit the holders of such Indebtedness for Borrowed
Money (or a trustee on behalf of such holders) to cause, any payment in respect
of such Indebtedness for Borrowed Money in an amount in excess of $1,500,000 to
become due before its stated maturity, an Officers' Certificate stating (i) the
contents of such written notice and of any other correspondence received by the
Trust with respect to such alleged failure and (ii) what action the Trust has
taken, is taking or proposes to take with respect thereto;
(j) together with each delivery of information pursuant to subsections (a) or
(b) of this (S)9.1, if any of the Executive Officers shall have obtained
knowledge of (x) the institution of any litigation involving claims against the
Trust or any Subsidiary, or in respect of which it may be answerable, in an
amount equal to or greater than $7,500,000 in excess of Insurance Coverage, if
any, applicable thereto, or (y) any adverse determination in any such litigation
involving a potential liability to the Trust or any Subsidiary equal to or
greater than $1,500,000 in excess of Insurance Coverage, if any, applicable
thereto, an Officers' Certificate (i) identifying the parties to such
litigation, (ii) stating the amount and nature of the claims against the Trust
or such Subsidiary that are asserted in such litigation, and (iii) stating what
action the Trust has taken, is taking or proposes to take with respect thereto;
(k) not more than 15 days after any of the Executive Officers obtains
knowledge of any Environmental Event with respect to any Mortgaged Center, an
Officers' Certificate (i) identifying such Mortgaged Center, (ii) stating the
nature of the occurrence or the condition constituting such Environmental Event
and the period of existence thereof, (iii) estimating (x) the amount of the
potential liability of the Trust as a result of such Environmental Event and (y)
the amount of the probable reduction, if any, in the Market Value of such
Mortgaged Center as a result of such Environmental Event, and (iv) stating what
action the Trust has taken, is taking or proposes to take with respect to such
Environmental Event;
(l) not more than 15 days after any of the Executive Officers obtains
knowledge of any Title Defect with respect to any Mortgaged Center, an Officers'
Certificate (i) identifying such Mortgaged Center, (ii) if such Title Defect is
attributable to the failure of the Trust to have obtained good and indefeasible
title to such Mortgaged Center or any part thereof, (x) stating the reasons for
such failure and (y) estimating the cost to the Trust of obtaining good and
indefeasible title to such Mortgaged Center, (iii) if such Title Defect is
attributable to the existence of a Lien on such Mortgaged Center or any part
thereof, (x) stating the nature and amount of the obligation, if any, the
payment or performance of which is secured by that Lien or the
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To the Purchasers
April 1, 1994
Page 31
amount of the probable reduction, if any, in the Market Value of such Mortgaged
Center as a result of such Lien, and (y) if such Lien may be discharged,
estimating the cost to the Trust of discharging that Lien, and (iv) stating what
action the Trust has taken, is taking or proposes to take with respect to such
Title Defect;
(m) not more than 15 days after any of the Executive Officers obtains
knowledge of any Condemnation with respect to any Mortgaged Center, an Officers'
Certificate (i) identifying such Mortgaged Center, (ii) identifying the public
authority that proposes such requisition or taking, (iii) stating the nature of
the requisition or taking of such Mortgaged Center, and (iv) if such
Condemnation constitutes the requisition or taking by such public authority of
less than the entirety of such Mortgaged Center, estimating the cost of
repairing or restoring such Mortgaged Center and the probable reduction, if any,
in the Market Value of such Mortgaged Center as a result of such Condemnation;
(n) not more than 15 days after any of the Executive Officers obtains
knowledge of any Substantial Casualty Loss with respect to any Mortgaged Center,
an Officers' Certificate (i) identifying such Mortgaged Center, (ii) stating the
nature of the loss or damage to such Mortgaged Center and (iii) estimating the
cost of repairing or restoring such Mortgaged Center;
(o) promptly upon becoming aware of the occurrence of any
(i) "reportable event" with respect to any Plan, as such term is defined in
Section 4043 of ERISA, or
(ii) "prohibited transaction" with respect to any Plan, as such term is
defined in section 4975 of the Code, that might reasonably be expected to result
in a material liability to the Trust,
a written notice specifying (x) the nature thereof, (y) what action the Trust
has taken, is taking or proposes to take with respect thereto, and (z) when
known, any action taken or threatened by the Internal Revenue Service or the
Pension Benefit Guaranty Corporation with respect thereto; and
(p) with reasonable promptness, such other information and data with respect
to the Trust or any Mortgaged Center as may be reasonably requested by any
Holder.
(S)9.2 Inspection. The Trust shall permit any authorized representative
designated by any of you to (i) enter upon and inspect any Mortgaged Center,
(ii) visit any offices of the Trust or any Subsidiary, (iii) inspect the Trust's
or any Subsidiary's financial and accounting records, (iv) make copies and take
extracts therefrom, and (v) discuss the Trust's or any Subsidiary's affairs,
finances and accounts with its officers and, in or outside of the presence of
such officers, with their respective independent public accountants (and by this
provision the Trust authorizes said accountants to discuss with such authorized
representative the finances and affairs of the Trust and
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the Subsidiaries), all upon reasonable notice and at such reasonable times
during normal business hours and as often as may be reasonably requested. During
any visit or inspection permitted by this (S)9.2, no authorized representative
shall unreasonably disrupt the operations of the Trust or any Subsidiary.
(S)9.3 Compliance With ERISA. The Trust, each Subsidiary and any Person under
common control with the Trust, within the meaning of Section 4001(b) of ERISA,
shall not:
(a) engage in any transaction in connection with which the Trust, any
Subsidiary or any such Person could be subject to either a material civil
penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by section
4975 of the Code;
(b) terminate any Plan in a manner, or take any other action, that may
reasonably be expected to result in any material liability of the Trust, any
Subsidiary or any such Person to the Pension Benefit Guaranty Corporation;
(c) fail to make full payment when due of all amounts that, under the
provisions of any Plan, the Trust or any Subsidiary is required to pay as
contributions thereto, or permit to exist any accumulated funding deficiency
within the meaning of Section 302 of ERISA, whether or not waived, with respect
to any Plan; or
(d) fail to make full payment when due of all amounts that, under the
provisions of any Multiemployer Plan, the Trust or any Subsidiary is required to
pay as contributions thereto.
(S)9.4 Transactions With Aff1liates. The Trust shall not, directly or
indirectly, enter into or permit to exist any transaction (including, without
limitation, the purchase, sale, lease or exchange of any property or the
rendering of any service) with any Affiliate of the Trust, on terms that are
less favorable to the Trust than those that could be obtained at the time on an
arm's-length basis from any Person who is not such an Aff1liate, other than
transactions that would not (individually or in the aggregate) have a material
adverse effect on (i) the business, condition (financial or other), assets, or
operations of the Trust and the Subsidiaries taken as a whole or (ii) the Market
Value of any Mortgaged Center or its use and operation as a first-class shopping
center. Compensation of officers of the Trust including, but not limited to,
stock option rights issued to employees of an Affiliate of the Trust shall be
deemed arm's-length if approved in good faith by the Board of Trust Managers of
the Trust or of such Affiliate, as applicable; provided, however, that such
compensation would not have a material adverse effect on the business, condition
(financial or otherwise), assets, or operations of the Trust and the
Subsidiaries, taken as a whole.
(S)9.5 Conduct of Business. The Trust shall not, and shall not permit any of
the Subsidiaries to, engage in any business other than the businesses engaged in
by the Trust and the Subsidiaries on the date hereof and any businesses
substantially similar or related thereto.
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(S)9.6 Insurance. The Trust shall, and shall cause each Subsidiary to,
maintain or cause to be maintained:
(a) all-risk comprehensive property damage insurance with financially sound
and reputable insurers with respect to its facilities, buildings and other
properties in amounts and types as would customarily be carried in accordance
with good business practice under similar circumstances by corporations and real
estate investment trusts of established reputation engaged in the same or
similar business and similarly situated;
(b) public liability insurance with financially sound and reputable insurers
against claims for bodily injury, death or property damage in amounts not less
than would be customarily carried under similar circumstances in accordance with
good business practice by corporations and real estate investment trusts of
established reputation engaged in the same or similar business and similarly
situated; and
(c) other insurance with financially sound and reputable insurers against such
risks and in amounts and types not less than would be customarily carried under
similar circumstances in accordance with good business practice by corporations
and real estate investment trusts of established reputation engaged in the same
or similar businesses and similarly situated.
(S)9.7 Existence and Good Standing. Subject to the right of the Trust to
consolidate with or merge into another Person in compliance with (S)9.11, the
Trust shall at all times preserve and keep in full force and effect its
existence in good standing. The Trust (i) shall at all times preserve and keep
in full force and good standing all rights and franchises material to its
business and (ii) shall qualify to do business in any jurisdiction where it
conducts business or owns assets and where the failure to do so would have a
material adverse effect on the business, condition (financial or otherwise),
assets, or operations of the Trust and the Subsidiaries taken as a whole.
(S)9.8 Payment of Taxes and Claims; Tax Consolidation. The Trust shall, and
shall cause each Subsidiary to, pay all taxes, assessments and other
governmental charges imposed upon it or any of its properties or assets or in
respect of any of its business income or property, the failure to pay which
might reasonably be expected to materially and adversely affect the business,
condition (financial or otherwise), assets, or operations of the Trust or of the
Trust and the Subsidiaries, taken as a whole, before any penalty or interest
accrues thereon, and all claims (including, without limitation, claims for
labor, services, materials and supplies) for sums that have become due and
payable and that by law have or may become a Lien upon any of its properties or
assets, before the time when any such Lien arises in connection therewith or
penalty or fine is incurred with respect thereto; provided, however, that no
such charge or claim need be paid if such charge or claim is being contested in
good faith by appropriate
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proceedings promptly instituted and diligently prosecuted and if adequate
reserves or other appropriate provisions, if any, as may be required by GAAP,
shall have been made therefor.
(S)9.9 Maintenance of Properties. To the extent necessary to avoid a material
adverse effect on the business, condition (financial or otherwise), assets, or
operations of the Trust or of the Trust and the Subsidiaries, taken as a whole,
the Trust shall, and shall cause each Subsidiary to, maintain or cause to be
maintained in good repair, working order and condition all properties owned or
leased by the Trust or any Subsidiary, and make or cause to be made all
appropriate repairs thereto and renewals and replacements thereof.
(S)9.10 Compliance With Laws. Without limiting the obligations of the Trust
contained in (S)(S)10.2 and 10.10, the Trust shall, and shall cause each
Subsidiary to, comply with the requirements of all applicable laws, rules,
regulations and orders of, and all applicable restrictions imposed by, any
governmental authority, the failure to comply with which might reasonably be
expected to materially and adversely affect the business, condition (financial
or otherwise), assets, or operations of the Trust or of the Trust and the
Subsidiaries, taken as a whole.
(S)9.11 Consolidation and Merger. The Trust shall not, directly or indirectly,
consolidate with, merge into or sell or otherwise transfer its assets as an
entirety or substantially as an entirety to, any other Person, or permit any
other Person to consolidate with or merge into the Trust, unless after such
consolidation, merger, sale or transfer, (i) the successor entity is organized
under the laws of the United States of America, a state thereof or the District
of Columbia, (ii) the successor entity assumes in writing the Trust's
obligations under and in connection with each of the Basic Documents, and (iii)
no Event of Default or Potential Event of Default exists or, after giving effect
to such consolidation, merger, sale or transfer, would exist. Not fewer than 30
days before the consummation of any consolidation of the Trust with, merger by
the Trust into or sale or other transfer by the Trust of its assets as an
entirety or substantially as an entirety to, any entity that is not a
corporation or a real estate investment trust, the Trust shall give to each
Holder written notice of that proposed transaction, which notice shall (i) state
the name of that entity and (ii) contain a description of the proposed
transaction.
(S)9.12 Execution and Delivery of Guaranty Agreements By New Wholly-Owned
Subsidiaries. If any Person shall become a Wholly-Owned Subsidiary after the
Closing Date, the Trust shall cause that Person to (i) execute, not more than 45
days after the end of the fiscal quarter in which such Person became a Wholly-
Owned Subsidiary, an Agreement of Guaranty dated as of the date such Person
became a Wholly-Owned Subsidiary and substantially in the form of Exhibit H
(with such changes therein, if any, as shall have been approved by such Person
and each of the Holders) and (ii) promptly following the date such Agreement of
Guaranty is executed by such Person, deliver an executed counterpart of such
Agreement of Guaranty to each Holder.
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(S)9.13 Restriction on Assets Owned by Non-Guaranteeing Subsidiaries. The
Trust will not permit the amount of Consolidated Total Assets at any date that
is attributable to assets owned at that date by one or more Subsidiaries (other
than Guaranteeing Subsidiaries) to be greater than 25% of Consolidated Total
Assets at that date.
(S)10 Covenants of the Trust With Respect to the Mortgaged Property. The Trust
covenants and agrees that from the Closing Date and so long as any of the Notes
shall remain outstanding:
(S)10.1 Performance of Leases. The Trust shall (i) duly and punctually perform
and comply with all of its covenants and agreements in each of the Leases with
respect to a Mortgaged Center, (ii) not terminate, cancel or waive its rights or
the obligations of any other party to any of such Leases, (iii) use all
reasonable efforts to maintain each of such Leases in force and effect during
the full term thereof, (iv) defend any action or proceeding arising under or in
any manner connected with any of such Leases or the representations, warranties,
covenants or agreements of the Trust or the other party or parties thereto, and
(v) not create any Lien on any of such Leases for the benefit of any creditor,
other than pursuant to the Mortgage. Notwithstanding the foregoing provisions of
this (S)10.1, the Trust shall not be required to obtain the consent or approval
of any Holder to cancel or modify any Lease, to waive or release any obligation
of any tenant or to reduce, forgive or abate any rentals if either (x) such
Lease (1) is not an Anchor Lease and (2) covers fewer than 5,000 square feet of
rentable area or has a term of fewer than seven years, or (y) such modification,
waiver or release does not directly or indirectly decrease the term of such
Lease, decrease the amount or change the time of payment of rentals payable
under such Lease, or materially and adversely affect the rights or benefits of
the lessor under such Lease. The Trust's entering into any Lease or other
agreement shall not obligate the Holders to subordinate the Lien of the Mortgage
to such Lease or other agreement or to take any other action with respect
thereto.
(S)10.2 Environmental Compliance and Indemnity.
(a) The Trust shall keep and maintain each Mortgaged Center in compliance with
Environmental Laws, and shall not cause or permit any Mortgaged Center to be in
violation of any of the Environmental Laws. The Trust shall not, except in
compliance with Environmental Laws, use, generate, manufacture, store or dispose
of, on, under or about any Mortgaged Center, or transport to or from Mortgaged
Center, any Hazardous Materials. The Trust shall not permit any Mortgaged Center
to be operated in a way that might reasonably be expected to cause the owner of
such Mortgaged Center to incur any loss, liability, damage, cost or expense for
matters arising under or related to any of the Environmental Laws.
(b) The Trust covenants and agrees to remove any Hazardous Materials not
permitted by this (S)10.2 from each affected Mortgaged Center (or, if removal is
prohibited by law, to take whatever action is required by law) within 90 days of
discovery or generation thereof, at the Trust's sole expense. The Trust shall
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establish and implement such procedures as may be necessary to determine and
assure that each Mortgaged Center and the operations conducted thereon are in
compliance with Environmental Laws. The Trust shall promptly deliver notice to
each of the Holders of any existing, pending or threatened action, investigation
or inquiry by any governmental authority in connection with any of the
Environmental Laws.
(c) To the full extent permitted by applicable law, the Trust hereby agrees to
defend, indemnify and hold harmless you, the several Holders and the respective
directors, officers, employees, attorneys, affiliates and agents of any of them
(collectively, the "Indemnified Parties") from and against any and all loss,
liability, damage, cost or expense (including attorneys' fees and court costs)
incurred by any Indemnified Party in connection with or otherwise arising out of
any claim or proceeding (whether brought by a private party, governmental agency
or otherwise) for bodily injury, property damage, abatement, remediation,
environmental damage or impairment or any other injury or damage resulting from
or relating to any Hazardous Materials located upon, migrating into, from or
through or otherwise relating to any of the properties of the Trust, including
without limitation any Mortgaged Center (whether or not the release of such
Hazardous Materials was caused by the Trust, a tenant or subtenant of the Trust,
a prior owner, a tenant or subtenant of a prior owner, or by any other party,
whether or not the alleged liability is attributable to the handling, storage,
generation, transportation or disposal of such Hazardous Materials or the mere
presence of the Hazardous Materials on any of the properties of the Trust,
including without limitation any Mortgaged Center, and whether or not the
alleged loss, liability, damage, cost or expenses is attributable, in whole or
in part, to any negligence, gross negligence or misconduct of any Indemnified
Party). The provisions of this (S)10.2(c) shall survive (i) any exercise of the
power of sale granted in the Mortgage, (ii) any foreclosure of the Lien of the
Mortgage, (iii) any conveyance in lieu of foreclosure, (iv) the payment in full
of the principal of, and interest and premium (if any) on, the Notes and (v) the
release of the Lien of the Mortgage or any other security documents executed in
connection herewith. THE PARTIES TO THIS AGREEMENT HEREBY ACKNOWLEDGE THEIR
INTENTION THAT THE FOREGOING PROVISIONS OF THIS (S)10.2(c) BE CONSTRUED TO
REQUIRE THE TRUST TO INDEMNIFY EACH OF THE INDEMNIFIED PARTIES FROM AND AGAINST
LOSSES, LIABILITIES, DAMAGES, COSTS AND EXPENSES THAT MAY BE CAUSED, IN WHOLE OR
IN PART, BY AN INDEMNIFIED PARTY'S OWN PAST, PRESENT OR FUTURE ACTION OR
INACTION, INCLUDING ACTION OR INACTION THAT CONSTITUTES OR IS DEEMED TO
CONSTITUTE NEGLIGENCE, GROSS NEGLIGENCE OR MISCONDUCT.
(d) If at any time the Majority Holders reasonably believe that the Trust may
have failed to comply with (S)10.2(a) or (b) with respect to any Mortgaged
Center, the Majority Holders may engage an environmental engineer or other
experts to perform environmental site assessments on such Mortgaged Center for
the purpose of determining whether there exists on or near such Mortgaged Center
any condition that could reasonably be expected to result in any loss,
liability, damage, cost or expense to the owner or operator of such Mortgaged
Center arising under any of the Environmental Laws. Such site assessments may be
performed at any time or times,
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upon reasonable notice, and under reasonable conditions established by the Trust
that do not impede the performance of such site assessments. The representatives
of the Majority Holders are hereby authorized to enter upon any Mortgaged Center
for such purposes. The representatives of the Majority Holders are further
authorized to perform both above and below the ground testing for environmental
damage or the presence of Hazardous Materials on any Mortgaged Center and such
other tests on any Mortgaged Center as may be appropriate to conduct such site
assessments. The Trust shall supply to the representatives of the Majority
Holders such historical and operational information regarding each of the
Mortgaged Centers as may be reasonably requested to facilitate such site
assessments and shall make available for meetings with the representatives of
the Majority Holders appropriate personnel having knowledge of such matters. The
cost of performing such site assessments shall be paid by the Trust.
(S)10.3 Alterations. The Trust shall not commit or permit any waste of any of
the Mortgaged Property or any part thereof and shall not (subject to the
provisions of (S)(S)14.1 and 14.2), without the express prior written consent of
the Majority Holders, make or permit to be made any material alterations or
additions to any Mortgaged Center or any part thereof except that the Trust (i)
may make tenant improvements as required by the several Leases and (ii) may make
such additions or alterations as are customary in shopping centers of comparable
size, character and construction in the community in which such Mortgaged Center
is located and in accordance with applicable laws, rules or regulations,
ordinances and restrictive covenants.
(S)10.4 Replacement of Fixtures and Personalty. The Trust shall not, without
the express prior written consent of the Majority Holders, permit any fixtures
or personalty owned by the Trust to be removed at any time from any Mortgaged
Center if such removal would, individually or in the aggregate, materially
impair the value of such Mortgaged Center or its use and operation as a shopping
center, unless the removed item is removed temporarily for maintenance and
repair or, if removed permanently, is replaced by an item of equal suitability
and value, owned by the Trust, free and clear of any Lien, except such as may be
first expressly approved in writing by the Majority Holders.
(S)10.5 Warranty of Title; No Further Encumbrances.
(a) The Trust does hereby bind itself, its successors and assigns, to warrant
and forever defend all and singular each Mortgaged Center unto the Trustee, his
successors and assigns, against every Person whomsoever lawfully claiming or to
claim the same, or any part thereof, subject only to (i) the Approved
Encumbrances with respect to such Mortgaged Center and (ii) one or more of the
Permitted Encumbrances with respect to such Mortgaged Center that were created
after the date such Mortgaged Center first became a Mortgaged Center.
(b) The Trust shall not, without the prior written consent of the Majority
Holders, create, place or permit to be created or placed, or, through any act or
failure to act, acquiescence in the placing of, or allow to remain, any Lien
(other
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than, in the case of any Lien that affects any of the Mortgaged Centers, (i)
Approved Encumbrances with respect to such Mortgaged Center or (ii) one or more
of the Permitted Encumbrances with respect to such Mortgaged Center that were
created after the date such Mortgaged Center first became a Mortgaged Center),
regardless of whether such Lien is expressly subordinate to the Lien of the
Mortgage, that (i) affects any of the Mortgaged Property and (ii) in the case of
any Lien that affects any of the Mortgaged Centers, constitutes a claim by,
through or under the Trust.
(S)10.6 Insurance. With respect to each Mortgaged Center and the Personalty
with respect to such Mortgaged Center, the Trust shall maintain or cause to be
maintained insurance with financially sound and reputable insurers, each having
a rating by A.M. Best Company of at least A-, VIII, against such risks and in
such amounts and types set forth on Exhibit Q. The policies evidencing such
insurance shall provide, by way of standard mortgagee endorsement, that (i)
proceeds in respect of such insurance will be payable to the Holders as their
interests may appear, (ii) the coverage of the Holders under such insurance
shall not be terminated, reduced or affected in any manner regardless of any
breach or violation by the Trust of any warranties, declarations or conditions
in such insurance, (iii) no such insurance shall be canceled, the coverage
thereunder reduced or the deductible amounts thereunder increased unless the
insurer shall have given to each of the Holders 30 days prior written notice
thereof, and (iv) the Holders may, but shall not be obligated to, make premium
payments to prevent any cancellation, endorsement, alteration or reissuance of
such insurance and such payments shall be accepted by the insurer to prevent
same.
(S)10.7 Payment of Taxes and Assessments. The Trust shall pay (i) all taxes,
assessments and other governmental charges of every kind or character charged,
levied, or assessed against any of the Mortgaged Property before any of such
taxes, assessments or charges become delinquent and before any penalty or
interest accrues thereon, (ii) all water, gas, sewer, electricity, and other
utility rates and charges with regard to any of the Mortgaged Property, (iii)
all maintenance fees or charges of any owners' association or like group
assessed with respect to any of the Mortgaged Property, and (iv) any ground
rents or any charges for any easement, license or agreement existing for the
benefit of any of the Mortgaged Property. Upon request of the Majority Holders,
the Trust shall furnish to each of the Holders evidence of the timely payment of
the items described in this (S)10.7. Notwithstanding the foregoing provisions of
this (S)10.7, the Trust shall not be required to pay any of such taxes,
assessments, charges, rates, fees or rents that are being contested in good
faith by appropriate proceedings promptly initiated and diligently conducted if
the Trust shall have established adequate reserves therefor or made such other
appropriate provisions, if any, as may be required by GAAP.
(S)10.8 Operation; Maintenance. The Trust shall operate or cause to be
operated each Mortgaged Center as a shopping center. The Trust shall maintain or
cause to be maintained in good repair, working order and condition each
Mortgaged Center, and the Trust shall make or cause to be made all appropriate
repairs thereto and to any renewals and replacements thereof necessary to keep
each Mortgaged Center in such state and condition.
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(S)10.9 Material Contracts. The Trust shall (i) duly and punctually perform
and comply with all of its representations, warranties, covenants and agreements
in each Material Contract with respect to a Mortgaged Center, (ii) not
voluntarily terminate, cancel or waive its rights or the obligations of any
other party to any of such Material Contracts, (iii) use all reasonable efforts
to maintain each of such Material Contracts in force and effect during the full
term thereof, (iv) defend any action or proceeding arising under or in any
manner connected with any of such Material Contracts or the representations,
warranties, covenants or agreements of the Trust or the other party or parties
thereto, and (v) not create any Lien on any of such Material Contracts for the
benefit of any creditor, other than the Holders. Notwithstanding the foregoing
provisions of this (S)10.9, the Trust shall not be required to obtain the
Holders' consent or approval to cancel or modify any Material Contract or to
cancel or waive or release any obligation of any other party or parties thereto
so long as the Trust shall promptly obtain a replacement contract therefor so
that any such cancellation, modification, waiver or release does not materially
and adversely affect the use and operation of any Mortgaged Center as a first-
class shopping center. The Trust shall, promptly after receiving any Holder's
request therefor, deliver to such Holder any material amendment to, or waiver of
any provision of, any Material Contract with respect to any Center or any future
Material Contract with respect to any Center.
(S)10.10 Compliance With Laws. Without limiting the obligations of the Trust
contained in (S)10.2, the Trust shall comply in all material respects with all
applicable laws, rules, regulations and orders of, and all applicable
restrictions imposed by, any governmental authority applicable to any of the
Mortgaged Property or the use and operation of any of the Mortgaged Property.
(S)10.11 Supplemental Title Opinions After Each Funding. Within 15 days after
each Funding Date for Notes of any series, the Trust shall deliver to each of
you:
(a) an abstractor's search certificate (i) covering the Base Real Property
with respect to each Mortgaged Center, (ii) stating a search period from the day
preceding the last day of the search period stated in the abstractor's search
certificate covering such Base Real Property that was delivered pursuant to
(S)5.10(a) to and including such Funding Date, and (iii) identifying each
document that affects such Base Real Property and was filed of record during
such search period;
(b) a name search certificate issued by Stewart Title Company stating that, as
of a date not earlier than such Funding Date, there was no record on file in the
Office of the County Clerk of Harris County, Texas, or in the office of the
County Clerk of Fort Bend County, Texas, of any abstract of judgment, federal
lien or state tax lien with respect to which the Trust is the debtor; and
(c) a Title Opinion with respect to each Mortgaged Center, which Title Opinion
shall be (i) dated such Funding Date and (ii) addressed to each of you.
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(S)10.12 Further Assurances. The Trust shall, at its expense, do, execute,
acknowledge and deliver, or cause to be done, executed, acknowledged and
delivered, all such further acts, instruments and assurances as may be
reasonably required by the Majority Holders for better granting to the Trustee
the Mortgaged Property or for carrying out the intention of, or facilitating the
performance of, each of the Transaction Documents.
(S)10.13 Maintenance of the Lien of the Mortgage.
(a) The Trust shall, upon the execution and delivery of the Mortgage and the
Financing Statement and thereafter from time to time, cause counterparts of the
Mortgage and the Financing Statement, each Supplemental Mortgage, each
recordable instrument or document delivered pursuant to (S)10.12, and any
additional financing statement or other instrument covering any of the Mortgaged
Property (including, without limitation, any amendment to the Financing
Statement, or to any statement filed to continue the Financing Statement, that
is executed and delivered pursuant to (S)11.5) to be filed, indexed, registered
and recorded as may be required by law to publish notice of and to perfect, make
effective and establish, or to preserve the priority of, the Lien of the
Mortgage as a valid and perfected lien on and security interest in the Mortgaged
Property.
(b) The Trust shall, from time to time, perform or cause to be performed any
other act required by law, and execute or cause to be executed any and all
additional financing statements and other instruments reasonably requested by
the Majority Holders, for the purpose of perfecting, making effective and
establishing, and preserving the priority of, the Lien of the Mortgage as a
valid and perfected lien on and security interest in the Mortgaged Property.
(c) The Trust shall maintain each of its chief executive office, its principal
place of business and the office at which it keeps the business records of the
Trust and the records relating to the Mortgaged Property at all times at 2600
Citadel Plaza Drive, Houston, Texas 77008, or at such other address in the
United States of America as the Trust shall specify in writing to each Holder
not fewer than 30 days after any change in the address of such chief executive
office, such principal place of business or such office at which the Trust keeps
its business records and the records relating to the Mortgaged Property.
(S)10.14 Notices to Lessees. If any Subordination Agreement for any Lease
shall require any Holder to notify the lessee named in that Lease of the
occurrence of any event, then, upon the occurrence of that event, the Trust,
acting on behalf of such Holder, shall notify such lessee of such occurrence at
the time and in the manner required by such Subordination Agreement.
(S)11 Registration. Transfer and Substitution of Notes.
(S)11.1 Note Register; Ownership of Notes. The Trust shall keep at its chief
executive office a register in which the Trust will provide for the registration
of the
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Notes and the registration of transfers of the Notes. In addition, such register
shall state (i) the name of such Holder and such Holder's nominee (if any), (ii)
the facsimile transmission number of such Holder for purposes of receiving
notices or other communications pursuant to this Agreement, (iii) the address of
such Holder for purposes of receiving confirmation of such notices or other
communications, and (iv) the principal amount and number of each outstanding
Note held by such Holder. The Trust may treat the Person in whose name any Note
is registered on such register as the owner and holder thereof for the purpose
of receiving payment of the principal of and premium, if any, and interest on
such Note and for all other purposes, whether or not such Note shall be overdue.
(S)11.2 Transfer and Exchange of Notes. Upon surrender at the Trust's chief
executive office of any Note or Notes of any series for registration of transfer
or for exchange and, in the case of the surrender of any Note or Notes of any
series for registration of transfer, upon fulfillment of the conditions
contained in (S)11.5, the Trust, at its expense, shall execute and deliver in
exchange therefor one or more new Notes of the same series, in denominations of
at least $1,000,000 (except that one Note may be issued in a lesser principal
amount if the original principal amount of the surrendered Note or Notes is not
evenly divisible by, or is less than, $1,000,000) as may be requested by the
Holder or transferee thereof, the aggregate principal amount of which equal the
aggregate original principal amount of such surrendered Note or Notes and that
are registered as such Holder or transferee may request, are dated and numbered
as provided in (S)1, and are otherwise of like tenor.
(S)11.3 Replacement of Notes. Upon receipt of evidence reasonably satisfactory
to the Trust of the loss, theft, destruction or mutilation of any Note of any
series and, in the case of any such loss, theft or destruction, upon delivery of
an indemnity bond in such reasonable amount as the Trust may determine (or, so
long as such Note is held by you or your nominee, of an unsecured indemnity
agreement from you), or, in the case of any such mutilation, upon the surrender
of such Note for cancellation, at the chief executive office of the Trust, the
Trust, at its expense, shall execute and deliver, in lieu thereof, a new Note of
the same series, in the same original principal amount as such lost, stolen,
destroyed or mutilated Note, dated as provided in (S)1, and otherwise of like
tenor.
(S)11.4 Determination of Outstanding Notes. Any Note in exchange for which, or
in replacement or upon transfer of which, a new Note or Notes is issued pursuant
to this (S)11 shall be canceled immediately upon the issuance of such new Note
or Notes and, from and after the time of the issuance of such new Note or Notes,
shall not be outstanding for purposes of this Agreement.
(S)11.5 Amendment of the Financing Statement. At the time of the surrender of
any Note or Notes for registration of transfer, the Trust shall require, as a
condition to such registration of transfer, that the Holder of such Note or
Notes execute and deliver to the Trust, at the Trust's expense, an amendment to
the Financing Statement, or to any statement filed to continue the Financing
Statement, to name the transferee
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To the Purchasers
April 1, 1994
Page 42
of such Note or Notes as a secured party with respect to the security interest
created by the Mortgage.
(S)12 Payments on the Notes.
(S)12.1 Place of Payment. Payments of principal, premium, if any, and interest
on the Notes shall be made at the Trust's chief executive office at 2600 Citadel
Plaza Drive, Houston, Texas, or at such other office or agency in Houston,
Texas, as the Trust shall have designated by written notice to the Holders.
(S)12.2 Method of Payment. The Trust shall pay all amounts (if any) that
become payable pursuant to (S)3(g), and all sums becoming due on the Notes for
principal, premium (if any) and interest, in lawful money of the United States
of America. So long as any of you or your nominee shall be a Holder, and
notwithstanding anything contained in (S)12.1 or in the Notes to the contrary,
all such payments to any of you shall be made by wire transfer of immediately
available funds to the account specified for such purpose in Schedule I or by
such other commercially reasonable method, or by crediting such other account
located in the United States of America, as any of you shall have from time to
time specified to the Trust in writing for such purpose, without the
presentation or surrender of such Notes or the making of any notation thereon,
except that any Notes paid or prepaid in full shall be surrendered to the Trust
at its chief executive office or at the place of payment maintained by the Trust
pursuant to (S)12.1 for cancellation. Concurrently with each such payment to any
Purchaser that is made by wire transfer of immediately available funds, the
Trust shall deliver, in the manner provided in (S)23, duplicate notices of such
payment to the respective facsimile transmission numbers and the respective
addresses specified for such purpose in Schedule I. The Trust shall afford the
benefits of this (S)12.2 to any institutional investor that is the transferee of
any Note.
(S)13 Additions to and Releases of the Mortgaged Property; Required
Prepayment.
(S)13.1 Valuation of Collateral. If an Evaluation Event occurs, each Center
constituting a part of the Collateral shall be valued pursuant to this (S)13.1.
(a) Valuation by Parties. Not more than 15 Business Days after such Evaluation
Event occurs, the Trust shall deliver or cause to be delivered to each Holder,
at the Trust's expense, a Valuation Report. Promptly upon request therefor, the
Trust shall deliver to each Holder any additional information reasonably
requested by the Majority Holders concerning the value of any Center that is a
part of the Collateral. The value of each Center that is set forth in such
Valuation Report shall be the value of such Center for purposes of this
Agreement unless, not more than 15 Business Days after delivery to each Holder
of such Valuation Report, the Majority Holders shall deliver to the Trust a
notice (i) identifying the Market Value of any Center stated in such Valuation
Report with which the Majority Holders disagree and (ii) stating an alternate
value (the "Noteholders' Value") for such Center. Before the determination of
any Noteholders' Value, the Majority Holders shall consult with the Trust in an
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To the Purchasers
April 1, 1994
Page 43
effort to reach agreement with the Trust as to the value of such Center, and the
Trust agrees to make its authorized representatives available for such
consultation at such times and places, and as often, as the Majority Holders
shall reasonably request. In making any analysis to fix the Noteholders' Value
of any Center, the Majority Holders shall not be obligated to use assumptions
used by the Trust in such Valuation Report (or any assumptions used in any
Appraisal Procedure), and the Majority Holders may elect to fix the Noteholders'
Value at any amount that the Majority Holders shall in good faith determine
based on the circumstances then existing and the information then available to
the Majority Holders concerning such Center. The Noteholders' Value of any
Center shall be the value of such Center for purposes of this Agreement unless,
not more than five Business Days after delivery to the Trust of the notice
stating such Noteholders' Value, the Trust shall deliver to each Holder a notice
identifying such Center as a Contested Center. The value of any Contested Center
shall be determined by the Appraisal Procedure.
(b) Appraisal Procedure. The Majority Holders will retain an Independent MAI
Appraiser to determine the value of any Contested Center. Such appraiser shall
be selected from lists of MAI Appraisers submitted by the Trust and the Majority
Holders, respectively, not more than five Business Days after the delivery to
each Holder of the notice identifying such Center as a Contested Center. The
Majority Holders and the Trust each shall submit to the other a list of three
MAI Appraisers and shall be deemed to have agreed on any appraiser whose name
appears on both lists. If no MAI Appraiser's name appears on both lists, then,
not more than ten Business Days after the delivery of such notice, the Majority
Holders and the Trust each shall choose one Independent MAI Appraiser, and the
two MAI Appraisers so chosen shall together choose, within five Business Days
after their engagement, a third Independent MAI Appraiser whose name appears on
neither of the lists submitted by the Trust and the Majority Holders. If either
the Majority Holders or the Trust fails to timely designate an appraiser as
herein provided, then an appraisal by an Independent MAI Appraiser chosen by the
other in accordance with this (S)13.1(b) shall determine the value of any
Contested Center.
(i) The MAI Appraiser or MAI Appraisers selected to value a Contested Center
shall determine the Market Value of such Contested Center (x) as of the date
such MAI Appraiser was retained (or, if more than one MAI Appraiser is retained,
as of the date the first of such MAI Appraisers was retained), (y) as such
Contested Center is encumbered (other than by the Lien of the Mortgage) and (z)
based on such Contested Center's value and use as income producing property. If
three MAI Appraisers shall be selected, the determination of the MAI Appraiser
that shall differ in amount most from the second greatest determination of all
three MAI Appraisers shall be excluded, the remaining two determinations shall
be averaged, and such average shall constitute the value of such Contested
Center by the MAI Appraisers. The value so determined and the fact that each MAI
Appraiser selected is Independent within the meaning of this Agreement shall be
certified in writing to the Trust and to each Holder by such MAI Appraiser or
MAI Appraisers not more than 30 days after the selection of the last MAI
Appraiser to be selected in accordance with this (S)13.1(b).
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To the Purchasers
April 1, 1994
Page 44
Except as otherwise provided in (S)13.1(b)(ii), the value so determined shall be
the value of such Contested Center for purposes of this Agreement.
(ii) The Majority Holders may reject the value of any Contested Center
determined by the Appraisal Procedure by delivering to the Trust, not more than
five Business Days after the delivery to each Holder of the certificate of the
MAI Appraiser or MAI Appraisers that is referred to in (S)13.1(b)(i), a notice
(x) identifying such Center and (y) stating that the value of such Center
determined by the Appraisal Procedure is rejected. If such notice is timely
delivered, the Trust shall be permitted to deliver a Request for Release
identifying such Contested Center. If, within five Business Days after the date
of delivery of such notice, the Trust delivers a Request for Release identifying
such Contested Center, then such Contested Center shall be deemed to have a
value of zero for purposes of this Agreement. If, within five Business Days
after the date of delivery of such notice, the Trust does not deliver a Request
for Release identifying such Contested Center, then (except as otherwise
provided in (S)13.3(b)) such Contested Center shall be deemed to have a value
equal to the Noteholders' Value for purposes of this Agreement.
(iii) The Trust shall pay all reasonable fees and expenses incurred with
respect to any MAI Appraiser engaged pursuant to this Agreement.
(S)13.2 Rejection of Nominated Collateral. If (i) not more than ten Business
Days after an Evaluation Event, the Trust delivers to each Holder a Nomination
Notice pursuant to (S)13.4(a) and (ii) on the sixth Business Day after the
timely delivery to each Holder of such Nomination Notice, the Majority Holders
shall not have delivered to the Trust a notice stating that (x) the Majority
Holders have preliminarily approved one or more of the Centers identified in
such Nomination Notice and (y) the sum of the Market Values (as stated in such
Nomination Notice) of such one or more Centers is at least 50% of the sum of the
Market Values (as stated in such Nomination Notice) of all of the Centers
identified in such Nomination Notice, then the Majority Holders shall be deemed
to have delivered to the Trust notice that each Center identified in such
Nomination Notice is rejected.
(S)13.3 Required Prepayment.
(a) If, on any Settlement Date, the Loan to Value Ratio is greater than 60%,
the Trust shall, on the next Payment Date for Notes of any series that occurs
not fewer than 180 calendar days after such Settlement Date, prepay a portion of
the aggregate unpaid principal amount of the outstanding Notes of all series
that will cause such Loan to Value Ratio to be not greater than 60% immediately
after giving effect to such prepayment (such portion of such aggregate unpaid
principal amount is referred to herein as the "Required Prepayment"). The
portion of the aggregate unpaid principal amount of the outstanding Notes of any
series to be so prepaid (for Notes of that series, the "Series Required
Prepayment") shall be the product obtained by multiplying (i) the Required
Prepayment by (ii) a fraction, the numerator of which is the aggregate unpaid
principal amount of outstanding Notes of that series and the denominator of
which is the aggregate unpaid principal amount of outstanding Notes of all
series.
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To the Purchasers
April 1, 1994
Page 45
(b) The aggregate unpaid principal amount of the outstanding Notes of each
series that is required to be prepaid pursuant to (S)13.3(a) shall be prepaid at
a price equal to:
(i) if no portion of such amount would have been required to be prepaid except
for the delivery of a Rejection Notice, the Series Required Prepayment for Notes
of that series without premium;
(ii) if (x) any portion of such amount would have been required to be prepaid
regardless of the delivery of a Rejection Notice and (y) the Evaluation Event
that required such prepayment was the delivery of an Exclusion Notice, the
Series Required Prepayment for Notes of that series plus the Reduced Prepayment
Premium for such portion of such amount;
(iii) if (x) any portion of such amount would have been required to be prepaid
regardless of the delivery of a Rejection Notice and (y) the Evaluation Event
that required such prepayment was not the delivery of an Exclusion Notice, the
Series Required Prepayment for Notes of that series plus the Special Prepayment
Premium for such portion of such amount;
(iv) if (x) a Rejection Notice was not delivered, and (y) the Evaluation Event
that required such prepayment was not the delivery of an Exclusion Notice, the
Series Required Prepayment for Notes of that series plus the Special Prepayment
Premium for such prepayment; and
(v) if (x) a Rejection Notice was not delivered, and (y) the Evaluation Event
that required such prepayment was the delivery of an Exclusion Notice, the
Series Required Prepayment for Notes of that series plus the Reduced Prepayment
Premium for such prepayment.
For purposes of determining whether any portion of such amount would have been
required to be prepaid except for, or regardless of, the delivery of a Rejection
Notice, (i) each Center that constitutes a part of the Collateral at the
Valuation Date that immediately preceded the last Settlement Date shall be
deemed to have the value of such Center determined in accordance with the
Valuation Process that was completed on that Valuation Date, except that, solely
for purposes of making that determination and not for purposes of determining
the Loan to Value Ratio at that Settlement Date, the value of any Center that
was a Contested Center at such Valuation Date and was identified in a Rejection
Notice delivered pursuant to (S)13.1(b)(ii) shall be the value of such Center
that was determined by the Appraisal Procedure that constituted a part of such
Valuation Process, rather than the value determined pursuant to (S)13.1(b)(ii),
and (ii) if, on the sixth Business Day after the timely delivery to each Holder
of a Nomination Notice pursuant to (S)13.4(a), the Majority Holders shall not
have delivered to the Trust notice of preliminary approval of one or more of the
Centers identified in such Nomination Notice, then the value of each Center
identified in such Nomination
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To the Purchasers
April 1, 1994
Page 46
Notice shall be the Market Value of such Center that was stated in such
Nomination Notice.
(c) Each prepayment pursuant to (S)13.3(a) of less than the entire aggregate
unpaid principal amount of the outstanding Notes of all series shall be in an
amount not less than $1,000,000 and shall be rounded to the next greater
integral multiple of $100,000.
(d) Not more than five Business Days after any Settlement Date on which the
Loan to Value Ratio is greater than 60%, the Trust shall give each Holder of
Notes of any series written notice of the prepayment required by (S)13.3(a),
which notice shall specify (i) the Payment Date for Notes of that series on
which such prepayment is required to be made pursuant to (S)13.3(a) and (ii) the
Series Required Prepayment for Notes of that series that is required to be
prepaid on such Payment Date. On the last Business Day preceding that Payment
Date, the Trust shall give each Holder notice of (i) each determination made
pursuant to (S)13.3(b), (ii) the basis for such determination, and (iii) any
Special Prepayment Premium or Reduced Prepayment Premium for such prepayment,
which notice shall be accompanied by a statement of the calculations made by the
Trust to determine such Special Prepayment Premium or Reduced Prepayment
Premium.
(e) In the case of any prepayment pursuant to (S)13.3(a) of all or any portion
of the aggregate unpaid principal amount of the outstanding Notes of all series,
the aggregate unpaid principal amount of such Notes to be prepaid plus any
Special Prepayment Premium or Reduced Prepayment Premium for such prepayment
shall become due and payable on the Payment Date specified in the notice of such
prepayment given pursuant to (S)13.3(d). After payment of the entire unpaid
principal amount of the outstanding Notes of any series, such Notes shall be
surrendered to the Trust and canceled and shall not be reissued. No Note shall
be issued in lieu of the prepaid principal amount of any Note.
(f) If any portion of the aggregate unpaid principal amount of Notes of any
series to be prepaid or of any Special Prepayment Premium or Reduced Prepayment
Premium for such prepayment is not paid on such Payment Date, (i) such portion
of such aggregate unpaid principal amount shall bear interest (computed on the
basis of a 360-day year of twelve 30-day months) from such Payment Date until
the date such portion is paid at a rate per annum equal to the Default Rate for
Notes of such series and (ii) such portion of such Special Prepayment Premium or
Reduced Prepayment Premium shall bear interest (computed on the basis of a 360-
day year of twelve 30-day months) from such Payment Date until the date such
portion is paid at a rate per annum equal to the Default Rate for Notes of such
series. Interest accrued and unpaid pursuant to the immediately preceding
sentence shall be due and payable on demand.
(g) No prepayment on any Payment Date for Notes of any series of less than the
entire aggregate unpaid principal amount of the outstanding Notes of that series
shall relieve the Trust of its obligation to pay (i) the Monthly Installment for
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To the Purchasers
April 1, 1994
Page 47
each outstanding Note of that series that is due and payable on such Payment
Date or (ii) subsequent Monthly Installments for each outstanding Note of that
series at the times and in the amounts required in (S)1.
(h) In the case of any prepayment pursuant to (S)13.3(a) of less than the
entire aggregate unpaid principal amount of the outstanding Notes of any series,
the aggregate unpaid principal amount of such Notes to be prepaid and any
Special Prepayment Premium or Reduced Prepayment Premium for such prepayment
shall be allocated among the outstanding Notes of that series in proportion, as
nearly as practicable, to the respective unpaid principal amounts of those
Notes, with adjustments, to the extent practicable, to compensate for any prior
prepayments not made exactly in that proportion.
(S)13.4 Additional Collateral.
(a) If (i) an Evaluation Event occurs and (ii) the Trust desires to subject
one or more additional Centers to the Lien of the Mortgage, then, not more than
ten Business Days after such Evaluation Event, the Trust shall deliver to each
of the Holders a Nomination Notice.
(b) If, within five Business Days after the timely delivery to each Holder of
a Nomination Notice pursuant to (S)13.4(a), the Majority Holders shall deliver
to the Trust notice of preliminary approval of one or more of the Centers
identified in such Nomination Notice, then, not more than 45 Business Days after
the delivery to the Trust of such notice, the Trust shall deliver to each of the
Holders the following, provided that the failure to deliver one or more items
shall not constitute an Event of Default or Potential Event of Default:
(1) an Officers' Certificate dated the date of delivery thereof and stating
that no Event of Default or Potential Event of Default has occurred and is
continuing; and
(2) with respect to each Center preliminarily approved by the Majority
Holders,
(i) an abstractor's search certificate (x) covering the Base Real Property
with respect to such Center, (y) stating a search period from and including the
Base Title Policy with respect to such Center to and including a date not more
than 15 days before to the date of its delivery, and (z) identifying each
document that affects such Base Real Property and was filed of record during
such search period,
(ii) a name search certificate issued by Stewart Title Company, or by another
title
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To the Purchasers
April 1, 1994
Page 48
company acceptable to the Majority Holders, stating that, as of a date not more
than 15 days before the date of its delivery, there was no record on file, in
the Office of the County Clerk of any county in which all or any part of such
Center is located, of any abstract of judgment, federal lien or state tax lien
with respect to which the Trust is the debtor,
(iii) a Title Opinion with respect to such Center, which Title Opinion shall
be (i) dated the date of such Officers' Certificate and (ii) addressed to each
of you,
(iv) a true and complete copy of each instrument listed in such Title Opinion
as an encumbrance on, or defect in title to, such Center, none of which
encumbrances or defects in title shall, either individually or in the aggregate,
materially adversely affect the Trust's ownership or possession of such Center,
the use of such Center as a shopping center, or the value of such Center as
income producing property,
(v) a survey by a Surveyor of the tract of land that comprises a part of such
Center consisting of (i) a map or plat of such tract of land that (x) is based
on an on-the-ground survey of such tract of land that was made by such Surveyor
not more than 90 days before the date of its delivery, (y) sets forth the as-
built location of each improvement that is located on such tract of land and (z)
was prepared in accordance with all other current standards and specifications
of the Texas Society of Professional Surveyors for a category lA land title
survey, (ii) a written legal description of such tract of land prepared by such
Surveyor, and (iii) a certificate of such Surveyor (w) signed and sealed by such
Surveyor, (x) dated not more than 90 days before the date of its delivery, (y)
certifying to each of the Holders (1) the accuracy of such map or plat, (2) the
accuracy of such legal description, and (3) compliance by such survey with such
standards and specifications, and (z) stating that (1) there are no visible
encroachments by any improvement that is located on such tract of land onto
adjoining premises,
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To the Purchasers
April 1, 199as
Page 49
streets or alleys, (2) there are no visible encroachments onto such tract of
land by any improvement from adjoining premises, (3) there are no encroachments
onto any easement, building setback line or other restricted area by any
improvement that is located on such tract of land, (4) such tract of land has
access to and from a dedicated public roadway, and (5) no part of such tract of
land is situated in a flood hazard or flood plain area that is designated as
such by, or in accordance with criteria established by authority of, the Federal
Insurance Administration or any other governmental authority having
jurisdiction;
(vi) a written report by the Environmental Engineer, or by another
environmental engineer acceptable to the Majority Holders, of its Phase I
environmental audit of such Center that (i) is dated not more than 60 days
before the date of its delivery, (ii) is duly executed on behalf of such
environmental engineer, (iii) contains a statement, in reasonable detail, of the
scope of such audit, (iv) states that such audit was conducted not more than 90
days before the date of its delivery, (v) is accompanied by a letter from such
environmental engineer to the Holders stating that the Holders are entitled to
rely upon such report, and (vi) evidences, to the reasonable satisfaction of
each of the Holders, that each such Center meets the requirements of (S)6.24;
(vii) true and complete copies of each of the Anchor Leases with respect to
such Center, which Leases shall be assignable by the Trust, shall be valid and
in full force and effect and without default in the payment of rent that is
more than 60 days past due, and shall disclose any advances received by the
Trust that have not already been credited on account of accrued rents,
(viii) an executed and acknowledged counterpart of a Tenant Certificate dated
as of a date not more than 30 days before the date of its delivery,
substantially in the form of Exhibit V (with such changes therein, if any, as
shall have been approved by the lessee named therein and each of the Holders),
and with appropriate
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To the Purchasers
April 1, 1994
Page 50
insertions as indicated in such form, for each of such Anchor Leases,
(ix) an executed and acknowledged counterpart of a Subordination Agreement
dated not more than 45 days before the date of execution of the Supplemental
Mortgage covering such Center, substantially in the form of Exhibit U (with such
changes therein, if any, as shall have been approved by the lessee named therein
and each of the Holders), and with appropriate insertions as indicated in such
form, for each of such Anchor Leases,
(x) a true and complete copy of each Material Contract with respect to such
Center, and
(xi) either (i) a tax certificate issued pursuant to Section 31.08 of the
Texas Tax Code for each taxing unit that is entitled to a lien for unpaid taxes
on the Base Real Property with respect to such Center, which tax certificates
shall collectively evidence that there are no delinquent taxes, penalties or
interest due on such Base Real Property according to the records of such taxing
unit, or (ii) other evidence reasonably satisfactory to each of the Holders that
there are no delinquent taxes, penalties or interest due on such Base Real
Property.
(c) If (i) the Trust shall have timely delivered a Nomination Notice pursuant
to (S)13.4(a) and (ii) the Majority Holders shall have delivered to the Trust
notice of preliminary approval of one or more of the Centers identified in such
Nomination Notice pursuant to (S)13.4(b), then, upon the termination of the 45
Business Day period referred to in (S)13.4(b):
(1) if (i) the Trust shall have failed to comply in any material respect with
the provisions of (S)13.4(b) with respect to any Center identified in such
notice of preliminary approval and (ii) within 15 Business Days after the
termination of such 45 Business Day period, the Majority Holders shall have
delivered notice to the Trust of such noncompliance, then (x) such notice to the
Trust shall not be deemed a Rejection Notice and (y) such Center shall not be
included in any New Collateral;
(2) if (i) the Trust shall comply in all material respects with the provisions
of (S)13.4(b) with respect to any Center
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To the Purchasers
April 1, 1994
Page 51
identified in such notice of preliminary approval and (ii) within 15 Business
Days after the termination of such 45 Business Day period, the Majority Holders
shall have delivered notice to the Trust identifying such Center as rejected by
the Majority Holders for inclusion in the Mortgaged Property, then (x) such
notice shall be deemed a Rejection Notice and (y) such Center shall not be
included in any New Collateral; and
(3) if, on the 16th Business Day after the termination of such 45 Business Day
period, the Majority Holders shall not have delivered to the Trust the notice
referred to in (S)13.4(c)(1) or the notice referred to in (S)13.4(c)(2), then
the Majority Holders shall be deemed to have delivered notice to the Trust that
each Center identified in such notice of preliminary approval, and with respect
to which the Trust shall have complied with the provisions of (S)13.4(b) in all
material respects, is acceptable to the Majority Holders for inclusion in the
Mortgaged Property.
(S)13.5 Supplemental Liens.
(a) Not more than five Business Days after each Settlement Date, the Trust
shall:
(i) subject any New Collateral to the Lien of the Mortgage by executing,
acknowledging, and delivering to each of the Holders multiple counterparts of a
Supplemental Mortgage dated to be effective on the date of execution and
delivery thereof, substantially in the form of Exhibit R (with such changes
therein, if any, as shall have been approved by the Trust and the Majority
Holders), with appropriate insertions as indicated in such form, and granting
(x) a first priority lien on each of the Centers that is a part of such New
Collateral, (y) a first priority assignment of Rents with respect to each of
those Centers and (z) a first priority security interest in the Additional
Rights with respect to each of those Center (other than the Rents with respect
to any of those Centers),
(ii) execute and deliver to special counsel to the Holders a financing
statement that (x) names the Trust as debtor and each of the Holders as a
secured party, (y) describes each of the Centers that is a part of such New
Collateral and the Additional Rights with respect to each of those Centers as
the collateral, and (z) is otherwise in form and substance reasonably
satisfactory to each of the Holders and their special counsel,
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To the Purchasers
April 1, 1994
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(iii) file (y) a counterpart of the Supplemental Mortgage that was executed,
acknowledged and delivered pursuant to clause (i) of this sentence in the Real
Property Records of each county of the State of Texas in which such New
Collateral, or any part thereof, is located, and (z) the financing statement
executed and delivered pursuant to clause (ii) of this sentence in the Uniform
Commercial Code Records of the Secretary of State of the State of Texas,
(iv) file a counterpart of each Subordination Agreement that was executed,
acknowledged and delivered pursuant to clause (ix) of (S)13.(4)(b)(2) in the
Real Property Records of the county of the State of Texas in which the leased
premises described in such Subordination Agreement is located, and
(v) pay all taxes, fees and other charges imposed with respect to the
recording or filing of the documents referred to in clauses (iii) and (iv) of
this sentence and deliver to each of the Holders evidence of such recording or
filing and of the payment of such taxes, fees and other charges.
(b) Within 15 days after the execution, delivery and recordation of the
Supplemental Mortgage required by (S)13.5(a), the Trust shall, with respect to
each Center that is part of the New Collateral that was subjected to the Lien of
the Mortgage by such Supplemental Mortgage, deliver to each Holder:
(i) an abstractor's search certificate (x) covering the Base Real Property
with respect to such Center, (y) stating a search period from the day preceding
the last day of the search period stated in the abstractor's search certificate
with respect to such Center that was delivered pursuant to (S)13.4(b)(2)(i) to
and including the date of recordation of such Supplemental Mortgage, and (z)
identifying each document that affects such Base Real Property and was filed of
record during such search period,
(ii) a name search certificate issued by Stewart Title Company, or by another
title company acceptable to the Majority Holders, stating that, as of the date
of recordation of such Supplemental Mortgage, there was no record on file, in
the Office of the County Clerk of any county in which all or any part of such
Center is located, of any abstract of judgment, federal lien or state tax lien
with respect to which the Trust is the debtor,
(iii) a Title Opinion with respect to such Center, which Title Opinion shall
be (x) dated not more than 15 days after the date of
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To the Purchasers
April 1, 1994
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recordation of such Supplemental Mortgage and (y) addressed to each of the
Holders, and
(iv) all policies, certificates or binders of insurance covering such Center
that are necessary to evidence compliance with (S)10.6.
(c) All expenses of the Holders with respect to the addition of New Collateral
shall be paid by the Trust, including without limitation all attorneys' fees and
expenses.
(S)13.6 Release of Liens.
(a) Limitations on Requests for Release. The Trust shall not deliver a Request
for Release more often than once in any year. Such right to deliver a Request
for Release may not be exercised on a cumulative basis, and each year during
which a Request for Release may be delivered shall commence on February 27,
1995, or on an anniversary of that date. Notwithstanding the foregoing
provisions of this (S)13.6(a), the Trust may deliver a Request for Release if
(i) the Center identified in such Request for Release is the subject of a bona
fide contract of sale to any Person that is not an affiliate of the Trust, (ii)
the Center identified in such Request for Release is a Center with respect to
which a Substantial Casualty Loss, a Condemnation, an Environmental Event or a
Title Event occurred within the period of ten Business Days preceding the date
of such Request for Release, (iii) such Request for Release is delivered not
more than ten Business Days following a Settlement Date, or (iv) such Request
for Release is permitted to be delivered pursuant to the second sentence of
(S)13.1(b)(ii).
(b) Release of Release Centers. If (i) one or more of the conditions to
delivery of a Request for Release that are stated in (S)13.6(a) have been
fulfilled, (ii) no Event of Default or Potential Event of Default shall have
occurred and be continuing (other than an Event of Default or Potential Event of
Default that would cease to be continuing if such Center were released pursuant
to this (S)13.6), (iii) a Settlement Date occurred not more than ten Business
Days before the date such Request for Release was delivered, (iv) the Loan to
Value Ratio at such Settlement Date would not have exceeded 60% if the Release
Center identified in such Request for Release had been released from the Lien of
the Mortgage immediately prior to such Settlement Date, (v) the Trust shall have
paid each amount, if any, that shall have become due and payable pursuant to
(S)13.3 on the Payment Date for Notes of any series that occurs not fewer than
180 calendar days after such Settlement Date, and (vi) the conditions to the
release of the Release Center identified in such Request for Release that are
stated in (S)13.6(c) shall have been fulfilled, then (x) the Trust shall have
the right to have such Release Center and the Additional Rights with respect to
such Release Center released from the Lien of the Mortgage, and (y) each of the
Holders shall execute and deliver to the Trust one or more instruments in
recordable form to release such Release Center and such Additional Rights from
the Lien of the Mortgage. All expenses in connection with the preparation and
filing of those instruments (including, without limitation, all attorneys' fees
and expenses) shall be paid by the Trust.
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To the Purchasers
April 1, 1994
Page 54
(c) Further Conditions to Release. As a further condition to the release from
the Lien of the Mortgage of any Release Center, each of the following
conditions shall have been fulfilled to the reasonable satisfaction of each of
the Holders:
(i) the Trust shall have delivered to each of the Holders an Officers'
Certificate dated the date of delivery thereof and stating that (x) all the
conditions to such release stated in this (S)13.6 have been fulfilled, (y) no
Event of Default or Potential Event of Default has occurred and is continuing,
and (z) on the Mortgage Date for each Center that is part of any New Collateral
that was subjected to the Lien of the Mortgage after the Settlement Date that
last preceded the date of such Officers' Certificate, the warranties and
representations of the Trust contained in (S)(S)6.26 and 6.28 were true and
correct with respect to such Center as if such Center were an Initial Center and
as if such Mortgage Date were the Closing Date ;
(ii) on the Mortgage Date for each Center that is a part of such New
Collateral, the Trust shall have good and indefeasible title to such Center
subject only to Approved Encumbrances with respect to such Center;
(iii) all instruments as may be required by law to make effective and
establish, or to preserve the priority of, the Lien of the Mortgage, as such
Lien exists after giving effect to any Supplemental Mortgage covering such New
Collateral, shall have been recorded and filed in the appropriate places; each
Subordination Agreement that was executed, acknowledged and delivered pursuant
to (S)13.4(b)(2)(ix) for any Anchor Lease with respect to any Center that is a
part of such New Collateral shall have been recorded and filed in the real
property records of the county in which such Center is located; and all taxes,
fees and other charges payable in connection with such recordings and filings
shall have been paid;
(iv) on the Mortgage Date for each Center that is part of such New Collateral,
assuming that the Trust has good and indefeasible title to each Center that is
part of such New Collateral, subject only to Approved Encumbrances with respect
to such Center, the Supplemental Mortgage creates to secure the payment of the
Obligations (x) a first priority lien on such Center, (y) a first priority
assignment of Rents with respect to such Center, and (z) a first priority
security interest in the Additional Rights with respect to such Center (other
than the Rents with respect to such Center); and
(v) on the Mortgage Date for each Center that is part of such New Collateral,
no mortgage or financing statement or other instrument (other than the Mortgage)
creating Liens by, through, or under the Trust on any property constituting any
part of such New Collateral shall be on file in any recording office unless the
same shall have been terminated or released.
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To the Purchasers
April 1, 1994
Page 55
(d) Nothing contained in this (S)13.6 shall prevent the Holders from executing
and filing for record, at any time and in the Holders' sole discretion, a
partial release covering any Mortgaged Center with respect to which an
Environmental Event has occurred.
(S)14 Requisition or Taking; Casualty Loss.
(S)14.1 Requisition or Taking. Immediately upon any Executive Officer's
obtaining knowledge of the institution of any proceeding for a condemnation,
requisition or taking of any Mortgaged Center or any part thereof, the Trust
shall deliver notice of such proceeding to each Holder. The Trust shall, if
requested by the Majority Holders, file and defend any claim the Trust may have
as a result of such proceeding and prosecute such claim with due diligence to
its final disposition and shall cause any awards or settlements to be paid or
applied pursuant to the terms hereof. The Trust may be the nominal party in any
such proceeding, but the Majority Holders shall be entitled to participate in
and to control such proceeding and to be represented therein by counsel of their
own choice, and the Trust shall deliver to each Holder such instruments as may
be requested by the Majority Holders from time to time to permit such
participation. If such Center, or any part of such Center, is taken or
diminished in value, or if a consent settlement is entered by or under threat of
such proceeding, the award or settlement proceeds (the "Condemnation Proceeds")
payable to the Trust by virtue of its interest in such Center shall be paid to
American General Corporation to be held subject to the Lien of the Mortgage and
to be disbursed by American General Corporation as provided in this (S)14.1. The
portion of the Condemnation Proceeds necessary to reimburse the Holders for all
costs and expenses, including attorneys' fees, incurred in connection with the
collection of the Condemnation Proceeds shall be paid to the Holders. The
portion of the Condemnation Proceeds remaining after such reimbursement (the
"Net Condemnation Proceeds") shall be disbursed as follows:
(a) if (i) only a part of such Center is taken and the part remaining can (in
the Majority Holder's judgment), with rebuilding, restoration or repair, be
profitably operated as a shopping center, (ii) no Event of Default or Potential
Event of Default has occurred and is continuing, (iii) the Trust delivers
promptly to the Holders plans and specifications for such rebuilding,
restoration or repair that are acceptable to the Majority Holders, and (iv) the
Trust thereafter commences the rebuilding, restoration or repair and completes
the same not more than 30 days after commencement, all in accordance with such
plans and specifications, then the Net Condemnation Proceeds shall be paid to
the Trust; and
(b) to the extent not paid to the Trust pursuant to the foregoing clause (a),
(i) the Net Condemnation Proceeds shall, subject to the following proviso, be
used to prepay a portion of the aggregate unpaid principal amount of the
outstanding Notes of all series as if such proceeds constituted a prepayment
pursuant to (S)13.3(a) and (ii) the Trust shall pay to the
<PAGE>
To the Purchasers
April 1, 1994
Page 56
holders of Notes of each series the Special Prepayment Premium for such
prepayment;
provided that (i) if an Exclusion Notice is delivered as a result of the
Condemnation of such Center, or the Trust delivers to each of the Holders a
Request for Release identifying such Center, in either case on or before the
date that all or any portion of the Net Condemnation Proceeds are applied
pursuant to the foregoing clause, then American General Corporation shall
continue to hold the Net Condemnation Proceeds, which shall remain subject to
the Lien of the Mortgage, until the Settlement Date that is caused by the
delivery of such Exclusion Notice or Request for Release and (ii) if all of the
conditions to a release of such Center have been fulfilled on or before the date
that all or any portion of the Net Condemnation Proceeds are applied pursuant to
the foregoing clause, then American General Corporation shall pay the Net
Condemnation Proceeds to the Trust contemporaneously with such release. If only
a part of any Center is taken and the part remaining can (in the Majority
Holders' judgment), with rebuilding, restoration or repair, be profitably
operated as a shopping center, the Trust shall promptly commence and diligently
complete such rebuilding, restoration or repair, in accordance with plans and
specifications submitted to and approved by the Majority Holders, regardless of
whether the Trust is entitled to the Net Condemnation Proceeds or whether the
Net Condemnation Proceeds is adequate.
(S)14.2 Casualty Loss. Immediately upon any Executive Officer's obtaining
knowledge of any act or occurrence of any kind or nature (including any casualty
for which insurance is not obtained or obtainable) which results in damage to or
loss or destruction of any Mortgaged Center or any part thereof, the Trust shall
deliver notice of such act or occurrence to each Holder. The Trust shall, if
requested by the Majority Holders, promptly commence and diligently complete the
restoration, repair, replacement and rebuilding of such Center or part thereof
as nearly as possible to its value, condition and character immediately before
such damage, loss or destruction, regardless of whether the Net Casualty
Insurance Proceeds, if any, are adequate. Except as otherwise expressly provided
hereinbelow, the Trust shall cause all insurance proceeds (the "Casualty
Insurance Proceeds") attributable to any such damage, loss or destruction to be
paid promptly to American General Corporation to be held subject to the Lien of
the Mortgage and to be disbursed as provided in this (S)14.2. The portion of the
Casualty Insurance Proceeds necessary to reimburse the Holders for all costs and
expenses, including attorneys' fees and costs allocable to inspecting the Work
and the plans and specifications therefor, incurred in connection with the
collection of the Casualty Insurance Proceeds shall be paid to the Holders. The
portion of the Casualty Insurance Proceeds remaining after such reimbursement
(the "Net Casualty Insurance Proceeds") shall, upon delivery to each Holder of a
written request by the Trust, be applied to the payment of the costs of
repairing, replacing, restoring or rebuilding such center or part thereof so
damaged or destroyed (hereinafter referred to as the "Work"), subject to the
following conditions:
(a) if the Work is structural, an architect or engineer shall direct the work
and the plans and specifications for the Work shall provide that, upon
completion thereof, the improvements upon which the work is to be
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To the Purchasers
April 1, 1994
Page 57
performed shall be at least equal in value and general utility to such
improvements existing before the damage or destruction;
(b) each request for payment shall be delivered to each Holder at least 30
days' prior to the requested date of payment and shall be accompanied by a
certificate made by an architect or engineer and by an Officers' Certificate
stating that (i) the sum requested is justly required to reimburse the Trust for
payments by the Trust to, or is justly due to, the contractor, subcontractors,
materialmen, laborers, engineers, architects or other Persons rendering services
or materials for the Work (giving a brief description of such services and
materials), (ii) the aggregate amount of the requested payment and any prior
payments for portions of the Work does not exceed the value of the completed
portion of Work, and (iii) the completed portion of the Work is without material
defects;
(c) each request shall be accompanied by waivers of lien satisfactory to the
Majority Holders covering the Work and by a search prepared by the Title Company
or by other evidence satisfactory to the Majority Holders that there has not
been filed with respect to any part of the Work any mechanics' or other lien or
instrument for the retention of title not discharged of record or by a bond
satisfactory to the Majority Holders;
(d) no Event of Default or Potential Event of Default shall have occurred and
be continuing; and
(e) the f1nal request for payment for the Work shall be accompanied by a copy
of any certificate or certificates required by law to render occupancy of such
Center legal, including without limitation, certificates of occupancy.
If the Work is completed and paid for in full in compliance with this (S)14.2,
and if no Event of Default or Potential Event of Default shall have occurred and
be continuing, then the remaining Net Casualty Insurance Proceeds shall be paid
to the Trust. Upon any failure of the Trust promptly to commence or continue the
Work in compliance with this (S)14.2, or at any time upon request by the Trust,
the amount of any remaining Net Casualty Insurance Proceeds shall, subject to
the following proviso, be used to prepay a portion of the aggregate unpaid
principal amount of the outstanding Notes of all series as if such proceeds
constituted a prepayment pursuant to (S)13.3(a) and the Trust shall pay to the
Holders of Notes of each series the Special Prepayment Premium for such
prepayment; provided that the Majority Holders may at any time apply the whole
or any part of such Net Casualty Insurance Proceeds to cure any Event of
Default. Notwithstanding the foregoing, the Trust shall be entitled to receive
for application to repairs and restoration all Net Casualty Insurance Proceeds
directly attributable to casualty loss of or damage to any Mortgaged Center that
can be repaired for less than $100,000 and can be repaired in fewer than 120
days based upon the good faith estimate of a reputable independent general
contractor with at least five years of
<PAGE>
To the Purchasers
April 1, 1994
Page 58
experience in the construction and repair of major shopping centers in the State
of Texas, provided that (a) the Trust shall have agreed in writing to promptly
repair and restore such Mortgaged Center to substantially its prior condition
free of structural defects and free of liens arising out of such repair or
reconstruction and in accordance with all applicable laws, ordinances, rules,
regulations and restrictive covenants, (b) the Trust shall have delivered to
each Holder a contractor's certificate and an Officer's Certificate, each
setting forth the estimated cost and time to complete such repairs and
restorations, and (c) no Event of Default or Potential Event of Default shall
have occurred and be continuing. If (i) an Exclusion Notice is delivered or the
Trust delivers to each of the Holders a Request for Release with respect to such
Mortgaged Center on or before the date that any remaining Net Casualty Insurance
Proceeds are used as a prepayment as provided above in this paragraph, then
American General Corporation shall continue to hold such remaining Net Casualty
Insurance Proceeds subject to the Lien of the Mortgage until the Settlement Date
that is caused by the delivery of such Exclusion Notice or Request for Release
and (ii) all of the conditions to a release of such Center have been fulfilled
on or before the date that all or any portion of the Net Casualty Insurance
Proceeds are used as a prepayment as provided above in this paragraph, then the
Net Casualty Insurance Proceeds that are then held by American General
Corporation and are attributable to such Center shall be paid to the Trust
contemporaneously with such release.
(S)14.3 Effect of Application of Proceeds. In the case of any application of
proceeds to the prepayment of any portion of the aggregate unpaid principal
amount of the outstanding Notes of all series pursuant to (S)(S)14.1 or 14.2,
the aggregate unpaid principal amount of each of such Notes to be prepaid,
together with the Special Prepayment Premium on such amount, shall become due
and payable on the date such application is made.
(S)15 Procedure for Release of Subsidiaries From Guaranty Agreements.
(a) Officers' Certificate Requesting Release. On any date on which information
is delivered pursuant to subsections (a) or (b) of (S)9.1, the Trust may, at its
option, deliver to each Holder an Off1cers' Certificate, substantially in the
form of Exhibit S, with appropriate insertions as indicated in such form, dated
the date of delivery thereof and stating:
(i) that (x) no condition or event exists that constitutes an Event of Default
or Potential Event of Default and (y) no other Officers' Certificate has been
delivered pursuant to this (S)15 since the end of the most recently ended fiscal
quarter of the Trust;
(ii) Consolidated Total Assets at the end of the most recently ended fiscal
quarter of the Trust;
(iii) the amount of Consolidated Total Assets at the end of such fiscal
quarter that is attributable to assets owned at the date
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To the Purchasers
April 1, 1994
Page 59
of such Officers' Certificate by the Trust or one or more Guaranteeing
Subsidiaries;
(iv) the name and jurisdiction of incorporation of the Guaranteeing Subsidiary
for which a Release from Guaranty is requested pursuant to such Officers'
Certificate;
(v) the amount of Consolidated Total Assets at the end of such fiscal quarter
that is attributable to assets owned at the date of such Officers' Certificate
by such Guaranteeing Subsidiary; and
(vi) if the remainder obtained by subtracting the amount stated pursuant to
clause (v) of this (S)15(a) from the amount stated pursuant to clause (iii) of
this (S)15(a) is greater than 75% of the amount stated pursuant to clause (ii)
of this (S)15(a), a request that such Holder execute and deliver to the Trust a
Release from Guaranty dated as of the date of such Officers' Certificate and
substantially in the form of Exhibit T, with appropriate insertions to identify
such Guaranteeing Subsidiary as the Released Subsidiary (as that term is defined
in Exhibit T).
(b) Execution and Delivery of Release From Guaranty. Promptly following the
receipt by any Holder of an Officers' Certificate meeting the requirements of
(S)15(a) and such other information, if any, that such Holder may reasonably
have requested to determine whether, after giving effect to the execution and
delivery of the Release from Guaranty requested pursuant to such Officers'
Certificate, the condition stated in clause (vi) of that Officers' Certificate
will be satisfied, such Holder shall execute and deliver to the Trust such
Release from Guaranty.
(S)16 Default and Acceleration.
(S)16.1 Events of Default. Each of the following, whether voluntary or
involuntary, shall constitute an "Event of Default":
(a) if the Trust shall default in the payment of any Monthly Installment for
any outstanding Note of any series, or in the payment of any amount payable
pursuant to (S)1(f), for more than 5 days after the same becomes due and
payable; or
(b) if the Trust shall default in the payment of any other amount that
constitutes principal of, or premium, if any, or interest on, any outstanding
Note of any series, or in the payment of any interest on any of the foregoing,
after the same becomes due and payable; or
(c) if the Trust or any Subsidiary shall default in the performance of, or
compliance with, any term contained in (S)(S)3(g) 9.1(g),
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To the Purchasers
April 1, 1994
Page 60
9.1(h), 9.1(i), 9.1(j), 9.1(k), 9.1(1), 9.1(m), 9.1(n), 9.7, 9.11, 9.12,
10.5(b), 10.6, 10.13. 11.5 or 13.5; or
(d) if the Trust or any Subsidiary shall default in the performance of or
compliance with any term contained in this Agreement (other than (i) those
referred to in subsections (a) through (c) of this (S)16.1 and (ii) those
contained in (S)10.2 or (S)10.5(a)) and such default shall not have been
remedied within 30 days after the earlier of (i) such failure shall f1rst become
known to any Executive Officer or (ii) written notice of such failure shall have
been sent by any Holder to any officer of the Trust; or
(e) if any representation or warranty contained in this Agreement shall prove
to have been false or incorrect in any material respect on the date as of which
made; or
(f) if the Trust or any Subsidiary fails to pay any part of the principal of,
the premium, if any, or the interest on, or any other amount payable pursuant to
one or more instruments evidencing, Indebtedness for Borrowed Money of the Trust
or such Subsidiary the aggregate outstanding balance of which is in excess of
$15,000,000 (other than the Notes); or if the Trust or any Subsidiary fails to
perform or observe any other agreement, term or condition contained in any
document or documents evidencing or securing the payment of any Indebtedness for
Borrowed Money of the Trust or such Subsidiary, or contained in any agreement
under which any Indebtedness for Borrowed Money of the Trust or any Subsidiary
was issued or created, in each case if the effect of such failure is to cause,
or permit the holders of such Indebtedness for Borrowed Money (or a trustee on
behalf of such holders) to cause, any payment in respect of such Indebtedness
for Borrowed Money in an amount in excess of $15,000,000 to become due before
its stated maturity, provided that for all purposes of this subsection (f), the
term "Indebtedness for Borrowed Money" shall be deemed to exclude non-recourse
indebtedness; or
(g) if the Trust or any Guaranteeing Subsidiary shall (i) be generally not
paying its debts as they become due, (ii) file, or consent by answer or
otherwise to the f1ling against it of, a petition for relief or reorganization
or arrangement or any other petition in bankruptcy, for liquidation or to take
advantage of any bankruptcy or insolvency law of any jurisdiction, (iii) make an
assignment for the benefit of its creditors, (iv) consent to the appointment of
a custodian, receiver, trustee or other officer with similar powers of itself or
of any substantial part of its property for the purpose of the general
administration of such property for the benefit of creditors, (v) be adjudicated
insolvent or be liquidated pursuant to any bankruptcy or insolvency law of any
jurisdiction or (vi) take corporate action for the purpose of any of the
foregoing; or
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To the Purchasers
April 1, 1994
Page 61
(h) if a court or governmental authority of competent jurisdiction shall enter
an order appointing, without consent by the Trust, a custodian, receiver,
trustee or other officer with similar powers with respect to it or with respect
to any substantial part of its property, or if an order for relief shall be
entered in any case or proceeding for liquidation or reorganization or otherwise
to take advantage of any bankruptcy of insolvency law of any jurisdiction, or
ordering the dissolution, winding up or liquidation of the Trust or any
Guaranteeing Subsidiary, or if any petition for any such relief shall be filed
against the Trust or any Guaranteeing Subsidiary, and such petition shall not be
dismissed within 60 days; or
(i) if (i) a final judgment in an amount that when added the amounts of any
other outstanding final judgments against the Trust or any Guaranteeing
Subsidiary, exceeds an aggregate of $1,500,000 (including interest) in excess of
the Trust's Insurance Coverage applicable thereto, if any, shall be rendered
against the Trust or any Guaranteeing Subsidiary and (ii) either (x) within 10
days after entry thereof, such judgment shall not have been discharged or
execution thereof stayed pending appeal, or (y) within 10 days after the
expiration of such stay, such judgment shall not have been discharged; or
(j) if (i) either (x) any Transaction Document shall become invalid or
unenforceable, as a whole or in any material part, or (y) the Lien of the
Mortgage shall fail to accord to any of the Holders or to the Trustee the liens
or security interests intended to be created thereby, and (ii) any such event
shall not have been fully remedied and the secured position of the Holders
restored to their original positions by the Trust within 30 days after the
earlier of (x) the date such event shall first become known to any Executive
Officer, or (y) the date written notice of such event is given to the Trust by
any Holder, provided that if such invalidity, unenforceability or failure is due
to any act or omission of the Trust, such invalidity, unenforceability or
failure shall constitute an Event of Default without any requirement of notice
and without any period of grace.
(S)16.2 Acceleration of Maturity.
(a) Automatic Acceleration of Maturity. Upon the occurrence of any Event of
Default described in subsections (g) or (h) of (S)16.1 with respect to the
Trust, the entire unpaid portion of the principal amount of each outstanding
Note of each series that is not already due and payable pursuant to this
Agreement, together with the sum of (i) accrued and unpaid interest on the
entire unpaid portion of such principal amount that is not already due and
payable pursuant to this Agreement (but without duplicating any amounts referred
to in (S)16.2(d) that include accrued and unpaid interest on such principal
amount) plus (ii) the Note Default Premium for such Note, shall automatically
become immediately due and payable, without presentment,
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To the Purchasers
April 1, 1994
Page 62
demand, protest or other requirements of any kind, all of which are hereby
expressly waived by the Trust.
(b) Acceleration of MaturitY of All Notes by Declaration. Upon the occurrence
and during the continuation of any other Event of Default, the Majority Holders
may, by written notice to the Trust, declare the entire unpaid portion of the
principal amount of each outstanding Note of each series that is not already due
and payable pursuant to this Agreement to be, and the same shall forthwith
become, due and payable, together with the sum of (i) accrued and unpaid
interest on the entire unpaid portion of such principal amount that is not
already due and payable pursuant to this Agreement (but without duplicating any
amounts referred to in (S)16.2(d) that include accrued and unpaid interest on
such principal amount) plus (ii) the Note Default Premium for such Note.
(c) Acceleration of MaturitY of a Single Note by Declaration. Upon the
occurrence and during the continuation of an Event of Default described in
subsections (a) or (b) of (S)16.1 with respect to any outstanding Note of any
series, the Holder of such Note may, by written notice to the Trust, declare the
entire unpaid portion of the principal amount of such Note that is not already
due and payable pursuant to this Agreement to be, and the same shall forthwith
become, due and payable, together with the sum of (i) accrued and unpaid
interest on the entire unpaid portion of such principal amount that is not
already due and payable pursuant to this Agreement (but without duplicating any
amounts referred to in (S)16.2(d) that include accrued and unpaid interest on
such principal amount) plus (ii) the Note Default Premium for such Note. If any
Holder shall exercise its right to accelerate maturity pursuant to the
immediately preceding sentence, the Trust shall immediately give written notice
thereof to the Holder of each other outstanding Note of any series.
(d) No Effect on Other Amounts That Are Due and Payable. Any amounts that have
become due and payable as a result of acceleration of maturity of any
outstanding Note pursuant to the foregoing provisions of this (S)16.2 (or deemed
pursuant to (S)17.4 to have been declared due and payable pursuant to the
foregoing provisions of this (S)16.2) shall be in addition to any portion of any
amount that shall have become due and payable pursuant to any other provision of
this Agreement (including, without limitation, each Monthly Installment for each
outstanding Note of each series that shall have become due and payable and each
amount that shall have become due and payable pursuant to (S)(S)l(f), l(g),
1(1), 3(g), 3(h), 8.4, 8.5, 13.3(e), 13.3(f), 14.3 or 19) and remains unpaid at
the date of such acceleration of maturity.
(S)16.3 Interest on Amounts Due and Payable Pursuant to (S)16.2. If any
portion of any amount that becomes due and payable pursuant to (S)(S)16.2(a),
(b), or (c) to the Holder of any outstanding Note of any series is not paid on
the date such amount becomes due and payable, the portion of such amount that
was not paid shall bear interest (computed on the basis of a 360-day year of
twelve 30-day months) from that date until the date such portion is paid at a
rate per annum equal to the Default Rate for Notes of that series .
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To the Purchasers
April 1, 1994
Page 63
(S)16.4 Rescission. If any Note of any series shall have been declared due and
payable pursuant to (S)16.2, the Majority Holders may, by written notice to the
Trust, rescind and annul that declaration and its consequences if:
(a) the Trust shall have paid (i) all interest that shall have become due and
payable pursuant to (S)l(f), (ii) each Monthly Installment for each outstanding
Note of each series that shall have become due and payable, (iii) the portion
(if any) of the principal amount of each outstanding Note that shall have become
due and payable pursuant to (S)(S)8.4, 13.3(e) or 14.3, (iv) any Optional
Prepayment Premium that shall have become due and payable pursuant to (S)8.4,
(v) any Special Prepayment Premium or Reduced Prepayment Premium that shall have
become due and payable pursuant to (S)13.3(e), (vi) any Special Prepayment
Premium that shall have become due and payable pursuant to (S)14.3, (vii) any
amount that shall have become due and payable pursuant to (S)3(g), (viii) all
interest that shall have become due and payable pursuant to (S)(S)l(g), 1(1),
3(h), 8.5 or 13.3(f), (ix) any expense that has become due and payable pursuant
to (S)19, and (x) any interest that has become due and payable pursuant to
(S)19;
(b) all Events of Default and Potential Events of Default, other than
nonpayment of amounts that have become due and payable solely by reason of such
declaration, shall have been cured or waived pursuant to (S)22;
(c) no sale of any of the Mortgaged Property made under or by virtue of
(S)17.3 (whether made under any power of sale granted in the Mortgage or under
or by virtue of a judicial proceeding or of a judgment or decree of foreclosure
and sale) shall have occurred; and
(d) no judgment or decree shall have been entered for the payment of any
moneys due pursuant to any Basic Document.
No rescission and annulment under this (S)16.4 shall extend to or affect any
subsequent Event of Default or Potential Event of Default or impair any right
consequent thereon.
(S)17 Remedies on Default.
(S)17.1 Rights of Holders to Institute Suit. Notwithstanding any other
provision of any Basic Document or any Guaranty Agreement, each Holder shall
have the right to receive, and to institute suit for the payment of, each amount
that is then due and payable to such Holder pursuant to any Basic Document or
any Guaranty Agreement, and such right shall not be impaired without the consent
of such Holder.
(S)17.2 General Remedies. In case any one or more Events of Default or
Potential Events of Default shall occur and be continuing, the Majority Holders
may proceed to protect and enforce the rights of all of the Holders by an action
at law, suit in equity or other appropriate proceeding, whether for the specific
performance of any
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To the Purchasers
April 1, 1994
Page 64
agreement contained in any Basic Document or any Guaranty Agreement, or for an
injunction against a violation of any of the terms, or in aid of the exercise of
any power granted hereby or thereby or by law, including, without limitation, a
suit for any damages for loss of bargain or otherwise by such Holders, or
otherwise.
(S)17.3 Remedies Against the Mortgaged Property. Upon the occurrence and
during the continuation of an Event of Default, the Majority Holders may proceed
to enforce any rights and remedies that the Holders may have pursuant to the
Mortgage or to call upon the Trustee to enforce the Trustee's rights pursuant to
the Mortgage, including, without limitation, the exercise of the power of sale
contained therein, and the Trust shall be liable to pay to the Holders such
amounts as shall be sufficient to cover the costs and expenses of collection,
including, without limitation, reasonable attorneys' fees, expenses and
disbursements.
(S)17.4 Acceleration Upon Sale of Mortgaged Property. In the event of any sale
of any Mortgaged Property made under or by virtue of (S)17.3 (whether made under
any power of sale granted in the Mortgage or under or by virtue of a judicial
proceeding or of a judgment or decree of foreclosure and sale), the entire
unpaid portion of the principal amount of each outstanding Note of each series
that is not already due and payable pursuant to this Agreement, together with
the sum of (i) accrued and unpaid interest on the entire unpaid portion of such
principal amount that is not already due and payable pursuant to this Agreement
(but without duplicating any amounts referred to in (S)16.2(d) that include
accrued and unpaid interest on such principal amount) plus (ii) the Note Default
Premium for such Note, shall, if not otherwise due and payable at the time of
that sale, be deemed to have been declared immediately due and payable pursuant
to (S)16.2(b) at the time of that sale.
(S)17.5 Delay or Omission Not a Waiver. No course of dealing and no delay on
the part of any Holder in exercising any right, power or remedy shall operate as
a waiver thereof or otherwise prejudice such rights, powers or remedies. Every
right and remedy given by any subsection of this (S)17 or by law to the Holders
or the Trustee may be exercised from time to time, and as often as may be deemed
expedient, by the Holders or the Trustee.
(S)17.6 Rights and Remedies Cumulative. No right, power or remedy conferred by
any Basic Document or any Guaranty Agreement shall be exclusive of or limit any
other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute, or otherwise.
(S)18 Definitions.
(S)18.1 Certain Defined Terms. As used in this Agreement, the following terms
have the following respective meanings:
Additional Collateral means (i) one or more Centers that (i) are not Mortgaged
Centers, (ii) have been nominated in a Nomination Notice for inclusion in
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the Mortgaged Property and (iii) have been identified in a notice to the Trust
by the Majority Holders as having been preliminarily approved for that purpose.
Additional Rights, with respect to any Center, means:
(a) all Leases with respect to such Center;
(b) all Material Contracts with respect to such Center;
(c) all Personalty with respect to such Center;
(d) all Rents with respect to such Center;
(e) all of the Trust's right, title and interest in and to any existing or
future awards, remuneration, settlements or compensation relating to such
Center, or any part thereof, that are made or paid by any governmental
authority, including without limitation those made for any vacation of, or
change of grade in, any streets affecting such Center or any part thereof; and
(f) all of the Trust's right, title and interest in and to any existing or
future licenses, permits, warranties or wastewater discharge capacity
attributable or allocable to such Center or any part thereof.
affiliate, of any Person, means any other Person that, directly or indirectly,
controls, is controlled by, or is under common control with such first-mentioned
Person. For purposes of this definition, "control" (including, with correlative
meanings, the terms "controlling", "controlled by" and "under common control
with"), as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities
or by contract or otherwise.
Affiliate
(a) of any real estate investment trust or corporation, means (i) any officer,
trust manager or director thereof, (ii) any Person that is, directly or
indirectly, the beneficial owner of more than 10% of any class of any equity
security (as defined in the Exchange Act) thereof, (iii) if such beneficial
owner is a partnership, any general partner thereof, or (iv) if such beneficial
owner is a real estate investment trust or corporation, (x) any Person known to
the Trust to be controlling, controlled by or under common control with such
beneficial owner, (y) any officer, trust manager or director of such beneficial
owner, or (z) any officer, trust manager or director of any other real estate
investment trust or corporation
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known to the Trust to be controlling, controlled by or under common control with
such beneficial owner,
(b) of any partnership, means any general partner thereof, and
(c) of any Person other than a real estate investment trust, corporation or
partnership, means any other Person known to the Trust that, directly or
indirectly, controls or is controlled by or is under common control with such
first-named Person.
The term "Affiliate" shall also mean any relative of any individual who is an
Affiliate of any Person by virtue of any of the foregoing clauses (a), (b), or
(c) of this definition; provided that neither you nor any other institutional
holder of the Notes shall be deemed to be an Affiliate of the Trust. For the
purposes of this definition, "control" (including, with correlative meanings,
the terms "controlling", "controlled by" and "under common control with"), as
used with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities or
by contract or otherwise.
Agreement means this Note Purchase Agreement, including the exhibits and
schedules hereto.
Amended Senior Secured Note Agreement means the Senior Secured Note Agreement
as amended by (i) the Amendment to Note Purchase Agreement dated to be effective
as of March 31, 1991, between the Trust and the Persons in whose names the
Senior Secured Notes were registered at that date (or their respective
successors), and (ii) the Amendment.
Amendment means Amendment No. 2 to Note Purchase Agreement between the Trust
and the Senior Secured Noteholders (or their respective successors).
Anchor Lease, with respect to any Center, means any Lease that provides for:
(a) the use or occupancy of more than 15% of the net rentable square feet
contained within the improvements that comprise a part of such Center; or
(b) the payment of more than 15% of the annual rentals derived from the use or
occupancy of such Center.
Appraisal Procedure means the procedure contained in (S)13.1(b) for
determining the appraised value of one or more Centers.
Approved Encumbrances means:
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(a) with respect to any Initial Center, the Preliminary Exceptions with
respect to such Center, other than those of such Preliminary Exceptions that are
identified in a letter from any of you to the Trust that (i) states that the
Preliminary Exceptions identified therein are not acceptable and (ii) is
delivered to the Trust before the Closing Date; and
(b) with respect to any Center that is New Collateral, the Preliminary
Exceptions with respect to such Center, other than those of such Preliminary
Exceptions that are identified in a letter from any of the Holders to the Trust
that (i) states that the Preliminary Exceptions identified therein are not
acceptable and (ii) is delivered to the Trust not more than 20 days after the
date that the Trust has delivered to each of the Holders all of the documents
required to be delivered pursuant to (S)13.4(b) with respect to such Center.
Appurtenances, with respect to any tract of land, means:
(a) all of the Trust's right, title and interest in and to all tenements,
rights, easements, hereditaments, rights of way, privileges, liberties,
appendages and appurtenances belonging or in anywise appertaining to such tract
of land, or any part thereof, or to the Buildings or Fixtures with respect to
such tract of land or any part thereof;
(b) all of the Trust's right, title and interest in and to all water, gas,
oil, minerals, coal and other substances of any kind or character underlying or
relating to such tract of land, or any part thereof;
(c) all of the Trust's right, title and interest in and to any street, road,
highway, or alley (vacated or otherwise) adjoining such tract of land, or any
part thereof;
(d) all of the Trust's right, title and interest in and to all strips and
gores belonging, adjacent or pertaining to such tract of land or any part
thereof; and
(e) any after-acquired title of the Trust to any of the foregoing.
Available MaturitY Date means one of the following dates:
(a) May 27, 2007;
(b) February 27, 2010;
(c) February 27, 2012; and
(d) February 27, 2015.
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Base Real Property, with respect to any Center, means:
(a) the tract of land that constitutes a part of such Center;
(b) the Buildings with respect to that tract of land; and
(c) the Fixtures with respect to that tract of land.
Base Title Policy, with respect to any Center, means an Owner Policy of Title
Insurance in the form promulgated by the Texas Department of Insurance that:
(a) covers and describes the estate or interest of the Trust or of a Wholly-
Owned Subsidiary that is the Trust's immediate predecessor in title, in the Base
Real Property with respect to such Center; and
(b) names the Trust, or such Wholly-Owned Subsidiary, as the insured.
Basic Documents means this Agreement, the Mortgage and the Notes from time to
time outstanding.
Buildings, with respect to any tract of land, means any and all buildings,
open parking areas and other improvements, and any and all additions,
alterations, or appurtenances thereto, now or at any time hereafter situated,
placed or constructed upon such tract of land or any part thereof.
Business Day means a day other than a day on which national banking
associations are authorized or required to close in Houston, Texas.
Capital Lease, of any Person, means any lease of property (whether real,
personal or mixed) by such Person as lessee that would, in accordance with GAAP,
be required to be classified and accounted for as a capital lease on the balance
sheet of such Person.
Capital Lease Obligation, with respect to any Capital Lease of any Person,
means the amount of the obligation of such Person under such Capital Lease that
would, in accordance with GAAP, appear on a balance sheet of such Person in
respect of such Capital Lease.
Casualty Insurance Proceeds has the meaning assigned to that term in (S)14.2.
Center means:
(a) a tract of land that is (i) situated in the State of Texas and (ii)
improved by a shopping center;
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(b) all Buildings with respect to such tract of land;
(c) all Fixtures with respect to such tract of land; and
(d) all Appurtenances with respect to such tract of land.
Closing means 11:00 a.m., Houston time, on the Closing Date, at the Houston
offices of your special counsel, Fulbright & Jaworski L.L.P., 1301 McKinney
Street, Houston, Texas.
Closing Date means July 27, 1994.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Collateral means the Remaining Collateral and the Additional Collateral.
Commission means the Securities and Exchange Commission or any successor
agency.
Commitment Amount, at any date, means the positive remainder (if any) obtained
by subtracting:
(a) the original aggregate principal amount of all outstanding Notes, if any,
issued before that date, from
(b) $28,000,000.
If (i) at the Funding for Notes of any series, (v) the representation and
warranty of the Trust contained in the first sentence of (S)6.6, in the third
sentence of (S)6.7, in the third through the sixth sentences of (S)6.9, in
(S)6.10 or in (S)6.24 shall not be true and correct, with the result that the
Trust is unable to certify fulfillment of the condition contained in (S)5.1 that
such representation and warranty be true and correct at such Funding, (w) the
Trust shall have disclosed in writing to each Purchaser the inability of the
Trust to certify fulfillment of that condition and the reasons for which that
representation and warranty is untrue or incorrect, (x) each other condition
contained in (S)5 shall have been fulfilled to the satisfaction of each
Purchaser, (y) the Trust shall have delivered to each Purchaser the Note to be
purchased by such Purchaser at such Funding, and (z) any Purchaser shall have
elected pursuant to (S)3(f) to be relieved of any further obligation or
liability to purchase the Note to be purchased by such Purchaser at such
Funding, and (ii) no Notes of any series are issued after such Funding, other
than Notes issued pursuant to (S)11, then, solely for purposes of determining
the Commitment Amount at the date on which the Funding Period terminates, the
Notes to have been purchased by such Purchaser at such Funding shall be deemed
to have been issued at such Funding.
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Commitment Fee, at any date, means the product obtained by multiplying:
(a) the Commitment Amount at that date, times
(b) 2%.
Company means Weingarten Realty, Inc., a Texas corporation.
Condemnation, with respect to any Mortgaged Center, means any requisition or
taking by a public authority of:
(a) the entirety of such Mortgaged Center; or
(b) any part of such Mortgaged Center that (i) causes the remainder of such
Mortgaged Center to have a value that is at least $100,000 less than the
entirety of such Mortgaged Center or (ii) materially and adversely affects the
operation of the remainder of such Mortgaged Center as a shopping center.
Condemnation Proceeds has the meaning assigned to that term in (S)14.1.
Consolidated Subsidiaries means all Subsidiaries whose financial statements
are reported in conjunction with those of the Trust for tax and accounting
purposes.
Consolidated Total Assets, at any date, means the sum of the book values
(determined without deducting related depreciation or amortization) at which the
assets of the Trust and the Consolidated Subsidiaries would be shown on a
consolidated balance sheet at that date, prepared in accordance with GAAP.
Contested Center means a Center the Noteholders' Value of which is contested
by the Trust pursuant to (S)13.1.
Coupon Rate, for Notes of any series, means:
(a) if the Maturity Date for Notes of that series is May 27, 2007 (or, if such
day is not a Business Day, the next Business Day), the sum of (i) 95 basis
points plus (ii) the Treasury Based Rate at the Funding Date for Notes of that
series;
(b) if the Maturity Date for Notes of that series is February 27, 2010 (or, if
such day is not a Business Day, the next Business Day), the sum of (i) 100 basis
points plus (ii) the Treasury Based Rate at the Funding Date for Notes of that
series;
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(c) if the Maturity Date for Notes of that series is February 27, 2012 (or, if
such day is not a Business Day, the next Business Day), the sum of (i) 105 basis
points plus (ii) the Treasury Based Rate at the Funding Date for Notes of that
series; and
(d) if the Maturity Date for Notes of that series is February 27, 2015 (or, if
such day is not a Business Day, the next Business Day), the sum of (i) 110 basis
points plus (ii) the Treasury Based Rate at the Funding Date for Notes of that
series.
Current Subsidiaries means the Persons whose names are stated on Exhibit P.
Default Rate, for Notes of any series, means the lesser of:
(a) the sum of (i) the Coupon Rate for Notes of that series plus (ii) 2%; and
(b) the Maximum Lawful Rate.
Designated Number of Installments, for Notes of any series, means:
(a) if the Maturity Date for Notes of that series is May 27, 2007 (or, if such
day is not a Business Day, the next Business Day), 147;
(b) if the Maturity Date for Notes of that series is February 27, 2010 (or, if
such day is not a Business Day, the next Business Day), 180;
(c) if the Maturity Date for Notes of that series is February 27, 2012 (or, if
such day is not a Business Day, the next Business Day), 204; and
(d) if the Maturity Date for Notes of that series is February 27, 2015 (or, if
such day is not a Business Day, the next Business Day), 240.
Environmental Engineer means either TV Earth Technology Corporation or Jones
and Nuese, Inc.
Environmental Event, with respect to any Mortgaged Center, means the
occurrence of any event, or the existence of any condition, with respect to such
Mortgaged Center that causes the Trust not to be in compliance with (S)10.2(a)
or (b), if such noncompliance might reasonably be expected to result in (i) any
reduction in the Market Value of such Mortgaged Center at the date of the
discovery by any Executive Officer of such occurrence or condition, such Market
Value to be determined without giving effect to such occurrence or condition, or
(ii) any loss, cost, expense or liability to the owner of such Mortgaged Center
that would be material in light of such Market Value.
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Environmental Laws means all federal, state, local or municipal laws, rules,
regulations, statutes, ordinances or orders relating to (a) the control of any
potential pollutant, or protection of the air, water, groundwater or land, (b)
solid, gaseous or liquid waste generation, handling, treatment, storage,
disposal or transportation, or (c) exposure to hazardous, toxic or other
substances alleged to be harmful. "Environmental Laws" shall include, but not be
limited to, the Clean Air Act, 42 U.S.C. (S)7401 et seq., the Clean Water Act,
33 U.S.C. (S)1251 et seq., the Resource Conservation Recovery Act, 42 U.S.C.
(S)6901 et seq., the Toxic Substances Control Act, 15 U.S.C. (S)2601 et seq.,
the Safe Drinking Water Act, 42 U.S.C. (S)300f et seq. and the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. (S)9601 et
seq. The term "Environmental Laws" shall also include all state, local and
municipal laws, rules, regulations, statutes, ordinances and orders dealing with
the subject matter of the federal statutes identified in the immediately
preceding sentence or promulgated by any governmental or quasi-governmental
agency thereunder in order to carry out the purposes of any federal, state,
local or municipal law.
Environmental Report means the report described in (S)4.8(g).
ERISA means the Employee Retirement Income Security Act of 1974, or any
similar statute, as at the time in effect. Reference to a particular section of
such Act shall include a reference to the comparable section, if any, of such
similar federal statute.
Evaluation Event means any of the following:
(a) the delivery of a Rating Notice;
(b) the delivery by the Trust to the Holders of notice of the Trust's election
to cause a Valuation Date as a result of a prepayment pursuant to (S)8 of more
than $5,000,000 in aggregate principal amount of the outstanding Notes of any
series;
(c) the delivery of an Exclusion Notice; or
(d) the delivery to the Holders of a Request for Release, other than a Request
for Release that states that it is permitted to be delivered to the Holders
pursuant to either clause (iii) of the third sentence of (S)13.6(a) or the
second sentence of (S)13.1(b)(ii).
Event of Default has the meaning assigned to it in (S)16.1.
Exchange Act means the Securities Exchange Act of 1934, or any successor
statute, as at the time in effect. Reference to a particular section of such Act
shall include a reference to the comparable section, if any, of such successor
statute.
Excluded Center means any Center that is to be excluded from the Mortgaged
Property pursuant to a an Exclusion Notice or a Request for Release.
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Exclusion Notice means a notice to the Trust by the Majority Holders that the
Majority Holders have elected to exclude any Mortgaged Center from the Mortgaged
Property as a result of a Substantial Casualty Loss, a Condemnation, an
Environmental Event or a Title Event with respect to such Center.
Executive Off1cers means the following officers of the Trust: (i) the Chairman
of the Board of Trust Managers, (ii) the President, (iii) any other officer who
acts as the chief executive officer of the Trust, (iv) the Executive Vice
Presidents, (v) any officer who acts as the chief financial officer or chief
accounting officer of the Trust, and (vi) any other officer who is responsible
for the administration of this Agreement or for compliance by the Trust with any
term or provision of any Transaction Document.
Financing Statement means the financing statement referred to in (S)4.10(b).
Fiscal Year means each consecutive period of 52 or 53 weeks for which the
Trust, in accordance with GAAP, shall prepare its annual consolidated financial
statements.
Fixtures, with respect to any tract of land, means all of the Trust's right,
title and interest in and to all materials, supplies, equipment, fixtures,
apparatus and other items that (i) constitute real property under applicable law
and (ii) are now or hereafter attached to, installed in or located in or on
(temporarily or permanently) any portion of such tract of land or any Building
with respect to such tract of land, including but not limited to, any and all
partitions, window screens and shades, drapes, rugs and other floor coverings,
awnings, motors, engines, boilers, furnaces, pipes, plumbing, cleaning, call and
sprinkler systems, fire extinguishing apparatus and equipment, water tanks,
swimming pools, heating, ventilating, plumbing, laundry, incinerating, air
conditioning and air cooling equipment and systems, gas and electric machinery,
appurtenances and equipment, disposals, dishwashers, refrigerators and ranges,
and recreational equipment and facilities of all kinds.
Funding, for Notes of any series, means 11:00 a.m., Houston time, on the
Funding Date for Notes of that series, at the Houston offices of your special
counsel, Fulbright & Jaworski L.L.P., 1301 McKinney Street, Houston, Texas.
Funding Date, for Notes of any series, means the date for the issue and sale
of the Notes of that series that is stated in an Officers' Certificate timely
delivered pursuant to (S)3(a) and otherwise meeting the requirements of that
section.
Funding Period means the period commencing on the Closing Date and terminating
on February 27, 1995.
GAAP means generally accepted accounting principles as set forth in the
opinions of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements of the Financial Accounting
Standards Board or in
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To the Purchasers
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such opinions and statements of such other entities as shall be approved by a
significant segment of the accounting profession.
Guaranteeing Subsidiary means a Subsidiary that has:
(a) executed and delivered a Guaranty Agreement pursuant to (S)(S)4.12 or
9.12; and
(b) not been released from liability under that Guaranty Agreement pursuant to
(S)15 or otherwise.
Guaranty, as applied to any Person, means any direct or indirect liability,
contingent or otherwise, of such Person with respect to any Indebtedness, lease,
dividend or other obligation of another, including, without limitation, any such
obligation directly or indirectly guaranteed, endorsed (other than for
collection or deposit in the ordinary course of business) or discounted or sold
with recourse by such Person, or in respect of which such Person is otherwise
directly or indirectly liable, including, without limitation, any such
obligation effectively guaranteed by such Person through any agreement
(contingent or otherwise) to purchase, repurchase or otherwise acquire such
obligation or any security therefor, or to provide, or to indemnify any other
Person with respect to the provision of, funds for the payment or discharge of
such obligation (whether in the form of loans, advances, stock purchases,
capital contributions or otherwise), or to maintain the solvency of any balance
sheet or other financial condition of the obligor of such obligation, or to make
payment for any products, material or supplies or for any transportation,
services or lease regardless of the non-delivery or non-furnishing thereof, in
any such case if the purpose or intent of such agreement is to provide assurance
that such obligation will be paid or discharged, or that any agreements relating
thereto will be complied with, or that the holders of such obligation will be
protected (in whole or in part) against loss in respect thereof. The amount of
any Guaranty shall be equal to the amount of the obligation guaranteed thereby.
Guaranty Agreements means:
(a) the Agreements of Guaranty that are described in (S)4.12; and
(b) the other Agreements of Guaranty, if any, that are described in (S)9.12.
Hazardous Materials means (i) any petroleum or petroleum products, (ii) any
hazardous substances as defined by (S)101(14) of CERCLA, or (iii) any other
chemical, substance or waste that is regulated under any Environmental Law.
"hereof" and words of like import refer to this Agreement as a whole and not
to any particular section of this Agreement.
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Holder means a Person in whose name one or more outstanding Notes of any
series is registered on the register maintained by the Trust pursuant to
(S)11.1.
Indebtedness, of any Person, means:
(a) all items (except items of capital stock, paid-in surplus, retained
earnings, contingency reserves, or reserves for deferred income taxes) that in
accordance with GAAP would be included in determining total liabilities as shown
on the liability side of a balance sheet of such Person as of the date on which
Indebtedness is determined, including without limitation Capital Lease
Obligations with respect to any Capital Lease of such Person, and
(b) all indebtedness secured by any Lien on any property or asset owned or
held by such Person, whether or not the indebtedness secured thereby shall have
been assumed.
Indebtedness for Borrowed Money, of any Person (without duplication), means:
(a) Indebtedness, whether or not represented by bonds, debentures, notes or
other securities, for the repayment of borrowed money that such Person has
directly or indirectly created, incurred or assumed;
(b) Indebtedness, whether or not for borrowed money, secured by any Lien on
any property or asset owned or held by such Person, whether or not the
Indebtedness secured thereby shall have been assumed;
(c) Indebtedness of others with respect to which such Person has become liable
by way of a Guaranty;
(d) Capital Lease Obligations with respect to any Capital Lease of such
Person;
(e) Indebtedness, whether or not for borrowed money, with respect to which
such Person has become directly or indirectly liable and which represents or has
been incurred to finance the purchase price (or a portion thereof) of any
property (other than property acquired in the ordinary course of business on
ordinary trade terms not exceeding sixty days) or business acquired by such
Person, whether by purchase, consolidation, merger or otherwise; and
(f) Indebtedness of any other Person of the character referred to in
subdivision (a), (b), (c), (d) or (e) of this definition with respect to which
the Person whose Indebtedness for Borrowed Money is being determined has become
liable by way of a Guaranty.
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Indemnified Parties has the meaning assigned to that term in (S)10.2.
Indemnity Agreements means the Indemnity Agreements that are described in
(S)4.14.
Independent, as applied to any Person, means that such Person:
(a) is in fact independent;
(b) is not an affiliate of the Trust; and
(c) owns no securities of the Trust, of any affiliate of the Trust or of any
other Person that is liable to pay any of the Obligations.
If such a Person is an individual, such individual shall not be a director,
officer or employee of the Trustee, of any Affiliate, or of any other Person
that is liable in respect of any of the Obligations. If such Person is a
partnership or corporation, such partnership or corporation shall not have a
partner, director or officer who is a director, officer, employee or owner of
securities of the Trustee, of any Affiliate, or of any other Person that is
liable in respect of any of the Obligations.
Initial Leases means those leases identified in the Officers' Certificate
timely delivered pursuant to (S)4.8(a) and otherwise meeting the requirements of
that section.
Initial Center means a Center identified in the Officers' Certificate timely
delivered pursuant to (S)4.8(a) and otherwise meeting the requirements of that
section.
Initial Site means the tract of land that comprise a part of an Initial
Center.
Insurance Coverage, with respect to any Judgment, means the amount of money,
if any, that is payable to the Trust by an insurance carrier (other than a
carrier that is an Affiliate of the Trust) as a result of such Judgment if such
insurance carrier has acknowledged in writing its liability to pay such amount.
Interest Payment Dates means:
(a) August 27, 1994;
(b) September 27, 1994;
(c) October 27, 1994;
(d) November 27, 1994;
(e) December 27, 1994;
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(f) January 27, 1995; and
(g) February 27, 1995.
Interest Rate, for Notes of any series, means the lesser of:
(a) the Coupon Rate for Notes of that series; and
(b) the Maximum Lawful Rate.
Judgment means any judgment, order, decree or award, whether or not
appealable, of any court, tribunal, arbitrator or administrative agency.
Leases, with respect to any Center, means:
(a) the existing and future leases, subleases in which the Trust has an
interest, licenses or other agreements for the use or occupancy of all or any
part of such Center; and
(b) any guaranty of any obligation of the lessee under any of such leases,
subleases, licenses or other agreements.
Lien means any mortgage, lien, pledge, charge, security interest or other
encumbrance in or on, or any interest or title of any vendor, lessor, lender or
other secured party under any conditional sale or other title retention
agreement or Capital Lease with respect to, any property.
Lien of the Mortgage means the lien, security interest and assignment of Rents
created by the Mortgage.
Loan to Value Ratio, on any Settlement Date, means the quotient, expressed as
a percentage, obtained by dividing (i) the aggregate unpaid principal amount of
outstanding Notes of all series at such Settlement Date by (ii) the sum of (x)
the value of the Remaining Collateral determined in accordance with the
Valuation Process that last preceded such Settlement Date and (y) the value of
any New Collateral determined in accordance with such Valuation Process.
MAI Appraiser means an appraiser duly certified and in good standing with the
American Institute of Real Estate Appraisers.
Majority Holders means the Holder or Holders of a majority in aggregate
principal amount of the then outstanding Notes of all series.
Market Value, of any Center at any date, means the value of the interest of
the Trust in such Center that is the most probable price, as of that date, in
cash or in terms equivalent to cash, for which that interest should sell after
reasonable exposure in a competitive market under the conditions required for a
fair sale, with the
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April 1, 1994
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buyer and seller each acting prudently, knowledgeably and in their respective
self interests, and assuming that neither is under undue duress.
Material Contract, with respect to any Center, means a contract that:
(a) as of the date of determination, is for a term in excess of one year from
that date; and
(b) relates to the leasing, operation, ownership or management of that Center.
Material Development means any condition, event or occurrence that:
(a) if the Trust is at the time required to file reports under Section 13 or
15 of the Exchange Act, would give rise to an obligation to file a Current
Report on Form 8-K with the Commission; or
(b) if the Trust is not required to file reports under Section 13 or 15 of the
Exchange Act, would, in the opinion of the management of the Trust, reasonably
be expected to have a material adverse effect on the business, condition
(financial or other), assets, or operations of the Trust, including, by way of
illustration but not limited to, any such condition, event or occurrence
consisting of (i) the enactment or proposed enactment by any Federal, state or
local legislative or administrative body or authority of any statute, law,
order, ordinance, rule or regulation applicable to the Trust, but excluding such
matters as do not uniquely affect the real estate business or the Trust, (ii)
the rendering by any judicial or administrative body or authority of any order,
judgment, construction or decree, or the institution or threat of any
litigation, investigation or other proceeding, involving the Trust or any of its
assets, or operations or affecting the real estate business generally, but
excluding such matters as do not uniquely affect the real estate business or the
Trust, (iii) any change or proposed change in the President, any Senior Vice
President or any Executive Vice President of the Trust, or any other officer of
the Trust having a similar status or importance, (iv) any change or proposed
change or development in the Trust's or any Subsidiary's labor relations or
relations with tenants, or (v) any change or proposed change in the Trust's or
any Subsidiary's properties, but in each case only if such event, in the opinion
of management of the Trust, might reasonably be expected to have a material
adverse effect on the business, condition (financial or otherwise), assets, or
operations of the Trust and the Subsidiaries, taken as a whole.
Maturity Date, for Notes of any series, means the date upon which the
aggregate unpaid principal amount of the outstanding Notes of that series, and
accrued and unpaid interest on such aggregate unpaid principal amount, shall
become due and payable unless such aggregate unpaid principal amount shall
earlier have become due and payable pursuant to this Agreement, as such date is
stated in an Officers'
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Certificate timely delivered pursuant to (S)3(a) and otherwise meeting the
requirements of that section.
Maximum Lawful Rate means the maximum lawful nonusurious rate of interest per
annum that the laws of the State of Texas in effect from time to time permit to
be contracted for by, charged to, and received from, the Trust pursuant to any
of the Notes or any of the other Basic Documents, provided that if the maximum
lawful nonusurious rate of interest per annum that any Holder is permitted to
take or receive from, or charge to, the Trust shall be governed by the federal
laws of the United States of America, the term "Maximum Lawful Rate" shall mean,
in the case of any Note held by that Holder, the maximum lawful nonusurious rate
of interest per annum that the federal laws of the United States of America
permit such Holder to take or receive from, or charge to, the Trust pursuant to
any of the Notes or any of the other Basic Documents. The parties to this
Agreement hereby acknowledge that (i) the maximum lawful nonusurious rate of
interest per annum that the laws of the State of Texas in effect at the date of
this Agreement permit to be contracted for by, charged to, and received from,
the Trust pursuant to any of the Notes or any of the other Basic Documents is
determined by Article 5069-1.04, Title 79, Revised Civil Statutes of Texas,
1925, (ii) the rate ceiling specified in that statute, as in effect at the date
of this Agreement, is a rate of interest per annum computed on the basis of the
actual number of days elapsed in a year of 365 or 366 days, as the case may be,
and (iii) various provisions of this Agreement and the Notes provide that
interest at the Interest Rate for Notes of any series, or at the Default Rate
for Notes of any series, shall be computed on the basis of a 360-day year of
twelve 30-day months. Accordingly, if such maximum lawful nonusurious rate of
interest were required to be determined under the laws of the State of Texas as
in effect at the date of this Agreement, such maximum lawful nonusurious rate of
interest shall be expressed as a percentage per annum that produces an amount of
interest (computed on the basis of a 360-day year of twelve 30-day months) that
equals, but does not exceed, the maximum lawful nonusurious amount of interest
per annum that such statute permits to be contracted for by, charged to, and
received from, the Trust pursuant to any of the Notes or any of the other Basic
Documents.
Monthly Installment Amount, for Notes of any series on any Payment Date for
Notes of that series, means the sum of the amounts of the Monthly Installments
for the respective outstanding Notes of that series that are due and payable on
that Payment Date.
Monthly Installments, for any outstanding Note of any series, means the
consecutive monthly installments in which the unpaid portion of the principal
amount of such Note, and accrued and unpaid interest on the unpaid portion of
such principal amount, shall be due and payable following the date on which the
Funding Period terminates unless the unpaid portion of such principal amount and
such accrued and unpaid interest shall earlier have become due and payable
pursuant to this Agreement.
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Moody's means:
(a) Moody's Investors Service, Inc.;
(b) any corporation into or with which Moody's Investors Service, Inc. may be
merged or consolidated or that succeeds to all or substantially all the assets
of Moody's Investors Service, Inc. relating to and including its business of
rating securities; or
(c) if Moody's Investors Service, Inc. shall have dissolved or discontinued
its business of rating securities, a successor rating agency designated by the
Majority Holders.
Mortgage means the Deed of Trust, Assignment of Rents, Security Agreement and
Financing Statement from the Trust to John Madsen, as trustee.
Mortgage Date, for any Center, means the date on which such Center first
became subject to the Lien of the Mortgage.
Mortgaged Center means a Center that is then subject, or intended by the terms
of this Agreement to be subject, to the Lien of the Mortgage.
Mortgaged Property means the property that is then subject, or intended by the
terms of this Agreement to be subject, to the Lien of the Mortgage.
Multiemployer Plan means an employee pension benefit plan meeting the
definition of that term contained in Section 3(37) of ERISA and section 414(f)
of the Code to which contributions are, or have been, made by the Trust or any
of its Subsidiaries.
Net Casualty Insurance Proceeds has the meaning assigned to that term in
(S)14.2.
Net Condemnation Proceeds has the meaning assigned to that term in (S)14.1.
New Collateral means:
(a) Additional Collateral that (i) is acceptable to the Majority Holders for
inclusion in the Mortgaged Property and (ii) is identified in a notice to the
Trust by the Majority Holders as acceptable for that purpose; and
(b) the Additional Rights with respect to each Center that constitutes a part
of such Additional Collateral.
Nomination Notice means an Officers' Certificate that:
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(a) is dated the date of delivery thereof;
(b) identifies, by name and location, each of the Centers that the Trust
nominates for inclusion in the Mortgaged Property;
(c) sets forth (i) in reasonable detail, a narrative description of each of
those Centers, including a statement of the dimensions, character of
construction, and current and proposed use of any material improvement that
comprises a part of such Center, and (ii) a sufficient legal description of the
tract of land that comprises a part of each of those Centers;
(d) identifies, by date, term and identity of the lessee, each Lease with
respect to each of those Centers that is in effect at the date of such Officers'
Certificate;
(e) identifies, by date, term and identity of the party or parties thereto
(other than the Trust), each Material Contract with respect to each of those
Centers that is in effect at the date of such Officers' Certificate;
(f) identifies, by identity of the issuer, amount of coverage, file number,
policy number, date of policy, name of insured, and the name of the Center that
includes the Base Real Property title to which is covered by such policy, a Base
Title Policy with respect to each of those Centers;
(g) certifies that a true and complete copy of each of those Base Title
Policies is delivered with such Officers' Certificate;
(h) states the Trust's good faith estimate of the Market Value at the date of
such Officers' Certificate of each of those Centers;
(i) states the sum of such Market Values stated in clause (h) above;
(j) is accompanied by a written report of the procedures followed by the Trust
in ascertaining those Market Values;
(k) states the Trust's good faith estimate of the Market Value at such date of
each of the Centers that constitutes Remaining Collateral;
(l) states the sum of those Market Values stated in clause (k) above;
(m) states the positive remainder, if any, obtained by subtracting (i) the
amount stated pursuant to clause (l) of Officers' Certificate from (ii) the
quotient obtained by dividing (x) the aggregate unpaid principal amount of the
outstanding Notes of all series at such date by (y) 60%;
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(n) states that the amount stated pursuant to clause (i) of such Officers'
Certificate is not less than the product obtained by multiplying (i) the amount
stated pursuant to clause (m) of such Officers' Certificate times (ii) four; and
(o) states that (i) the quality of construction and the level of occupancy of
each of such Centers is at least as high as that of a majority of the Mortgaged
Centers at such date, (ii) the design of construction and the type of tenancy of
each such Center is substantially similar to that of a majority of the Trust's
retail properties at such date, and (iii) no current lessee under any Anchor
Lease with respect to any of such Centers is in bankruptcy at such date.
Note Default Premium, for any outstanding Note of any series, means an amount
equal to the lesser of:
(a) the positive remainder (if any) obtained by subtracting
(i) the sum of the present values, determined at the date on which the
maturity of that Note was accelerated pursuant to (S)16.2, of those Monthly
Installments for that Note on the several Payment Dates on which such Monthly
Installments would be due and payable if such acceleration had not occurred but
will no longer be due and payable solely as a result of such acceleration, such
present values to be computed in accordance with generally accepted financial
practice at a discount rate equal to the Interest Rate for Notes of that series,
from
(ii) the sum of the present values, determined at the date of such
acceleration, of those Monthly Installments for that Note on the several Payment
Dates on which such monthly Installments would be due and payable if such
acceleration had not occurred but will no longer be due and payable solely as a
result of such acceleration, such present values to be computed in accordance
with generally accepted financial practice at a discount rate equal to the sum
of
(1) the weekly average yield on actively traded United States Treasury
securities adjusted to a constant maturity most nearly equal to the remaining
weighted average life to scheduled maturity (computed in accordance with
generally accepted financial practice) of that Note, which weekly average yield
shall be determined by reference to the most recent Reporting Media that became
publicly available at least two Business Days before the date of such
acceleration, plus
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(2) 50 basis points; and
(b) the amount of interest on the unpaid portion of the principal amount of
such Note from the Funding Date for Notes of that series to the date of such
acceleration at the Maximum Lawful Rate minus the sum of (i) the amount of
accrued and unpaid interest on the unpaid portion of the principal amount of
such Note that becomes due and payable as a result of such acceleration or
became due and payable before such acceleration and remains unpaid, but
excluding such Note Default Premium, plus (ii) all amounts that (x) were paid by
or on behalf of the Trust to the Holder of such Note pursuant to such Note, or
pursuant to any of the other Basic Documents, before the date of such
acceleration and (y) constitute interest under applicable law.
Noteholders' Value means the value of a Center determined by the Majority
Holders in accordance with the provisions of (S)13.1.
Notes means the Trust's Variable Issue Senior Secured Notes. Such term shall
be limited to:
(a) all notes issued pursuant to (S)3(e); and
(b) all notes issued in exchange therefor, or in replacement or upon
transfer thereof, pursuant to (S)11.
Obligations has the meaning assigned to that term in the Mortgage.
Officers' Certificate means a certificate executed on behalf of the Trust:
(a) by its Chairman of the Board of Trust Managers, its President, or one of
its Executive Vice Presidents; and
(b) by its chief financial officer, its chief accounting officer, or its
Treasurer.
Each Officers' Certificate shall state the section of this Agreement pursuant to
which such Officers' Certificate is delivered.
Operative Documents means the Transaction Documents, any Tenant Certificate
for any Lease with respect to any Mortgaged Center, any Material Contract with
respect to any Mortgaged Center, any Subordination Agreement for any Lease with
respect to any Mortgaged Center, any Anchor Lease with respect to any Mortgaged
Center, the Environmental Report, the Survey, and any abstractor's search
certificate, tax certificate, lien search certificate or opinion of counsel to
the Trust that is delivered pursuant to this Agreement.
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Optional Prepayment Premium, for any prepayment of all or any portion of the
aggregate principal amount of the outstanding Notes of any series, means the
positive remainder (if any) obtained by subtracting:
(a) the sum of the present values, determined at the date fixed for such
prepayment, of those Monthly Installment Amounts for Notes of that series on the
several Payment Dates on which Monthly Installments for each outstanding Note of
that series would be due and payable if such prepayment were not made but will
no longer be due and payable solely as a result of such prepayment, such present
values to be computed in accordance with generally accepted financial practice
at a discount rate equal to the Interest Rate for Notes of that series, from
(b) the sum of the present values, determined at the date fixed for such
prepayment, of those Monthly Installment Amounts for Notes of that series on the
several Payment Dates on which Monthly Installments for each outstanding Note of
that series would be due and payable if such prepayment were not made but will
no longer be due and payable solely as a result of such prepayment, such present
values to be computed in accordance with generally accepted financial practice
at a discount rate equal to the sum of
(i) the weekly average yield on actively traded United States Treasury
securities adjusted to a constant maturity most nearly equal to the remaining
weighted average life to scheduled maturity (computed in accordance with
generally accepted financial practice) of the Notes of that series, which weekly
average yield shall be determined by reference to the most recent Reporting
Media that became publicly available at least two Business Days before the date
fixed for such prepayment, plus
(ii) 50 basis points.
Other Assets means assets other than the Mortgaged Property.
Other Instruments means the instruments referred to in (S)4.10(c).
Payment Date, for Notes of any series, means a date on which one of the
Monthly Installments for each outstanding Note of that series is due and
payable.
Permitted Encumbrances with respect to any Mortgaged Center, means any and all
of the following to the extent validly existing and affecting all or any part of
such Mortgaged Center:
(a) easements, rights-of-way, servitudes, other similar reservations, rights
and restrictions, and other minor defects and irregularities affecting such
Mortgaged Center, none of which individually
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To the Purchasers
April 1, 1994
Page 85
or in the aggregate materially diminishes the value of such Mortgaged Center or
materially impairs the use thereof by the Trust as a shopping center;
(b) Liens securing the payment of taxes, assessments or other governmental
charges, and Liens securing the payment of amounts owed to mechanics,
materialmen or laborers for services performed or materials furnished in
connection with such Mortgaged Center, that, in either case, are not due and
payable or the amount or validity of which are being contested by appropriate
legal proceedings that operate during the pendency of such legal proceedings to
prevent the collection of such taxes, assessments or other governmental charges,
or of such amounts owed to mechanics, materialmen or laborers, and to prevent
the sale or forfeiture of such Mortgaged Center or any interest therein subject
or intended to be subject to the Lien of the Mortgage;
(c) attachment, judgment or other similar Liens arising in connection with
court proceedings, provided that the execution or other enforcement of such
Liens is effectively stayed and that the claims secured thereby are being
actively contested in good faith and by appropriate legal proceedings;
(d) the Lien of the Mortgage;
(e) any Lease that (i) grants a possessory right in or to, or the right to
use, such Mortgaged Center or any part thereof, (ii) is in effect at the Closing
(provided that nothing herein contained shall be deemed to subordinate the Lien
of the Mortgage to any such Lease that is now or hereafter subordinate to such
Lien), and (iii) if supplemented or amended after the Closing, is so
supplemented or amended in accordance with (S)10.1; and
(f) any Lease that (i) grants a possessory right in or to, or the right to
use, such Mortgaged Center or any part thereof, (ii) if entered into after the
Closing, is entered into in accordance with (S)10.1, and (iii) if thereafter
supplemented or amended, is so supplemented or amended in accordance with
(S)10.1.
Person means an individual, a partnership, a limited partnership, a joint
venture, a corporation, a limited liability company, a trust, an unincorporated
organization, a government or any department or agency of a government.
Personalty, with respect to any Center, means the Trust's right, title and
interest in and to the equipment, machinery, goods, general intangibles, money,
accounts, contract rights, inventory and other personal property (other than
Fixtures with respect to the tract of land that comprises a part of such Center)
of any kind or character that is now or hereafter located upon, within or about
such Center, or any
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To the Purchasers
April 1, 1994
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part thereof, together with all accessories, replacements and substitutions
thereto or therefor and the proceeds thereof.
Plan means an employee pension benefit plan (within the meaning of Section 3
of ERISA) that (i) is subject to Title 4 of ERISA and (ii) is or has been
established or maintained, or to which contributions are or have been made, by
the Trust or any Subsidiary, provided that the term "Plan" shall not include a
Multiemployer Plan.
Potential Event of Default means a condition or event which, after notice or
lapse of time or both, would constitute an Event of Default.
Preliminary Exceptions, with respect to any Center, means those encumbrances
on, or defects in title to, such Center that are stated in one or more of the
Preliminary Title Documents with respect to such Center.
Preliminary Title Documents means:
(a) with respect to each Initial Center, (i) the Title Opinion with respect
to such Center that is referred to in (S)4.8(d), (ii) the copies of instruments
evidencing exceptions described in (S)4.8(e), and (iii) the surveys described in
(S)4.8(f); and
(b) with respect to any Center that is New Collateral, (i) the Title Opinion
with respect to such Center that is referred to in (S)13.4(b)(2)(iii), (ii) the
copies of instruments evidencing exceptions with respect to such Center
described in (S)13.4(b)(2)(iv) and (iii) the survey with respect to such Center
described in (S)13.4(b)(2)(v).
property means any interest in any kind of property or asset, whether real,
personal or mixed, or tangible or intangible.
Purchasers means the Persons named as Purchasers on Schedule I.
Rating Notice means a notice to the Trust by the Majority Holders that the
Majority Holders have elected to cause a Valuation Date as a result of:
(a) any action on the part of Moody's (i) to reduce the rating on any
security evidencing senior indebtedness of the Trust that is registered pursuant
to Section 12 of the Exchange Act to Baa3 or some lower rating or (ii) to
withdraw its rating and decline to publish a rating for such security;
(b) any action on the part of Standard & Poor's (i) to reduce the rating on
any security evidencing senior indebtedness of the Trust that is registered
pursuant to Section 12 of the Exchange Act to BBB- or some
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To the Purchasers
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Page 87
lower rating or (ii) to withdraw its rating and decline to publish a rating for
such security; or
(c) the failure of the Trust to have outstanding any security evidencing
senior indebtedness of the Trust that (i) is registered pursuant to Section 12
of the Exchange Act and (ii) has a rating published by either Moody's or
Standard & Poor's.
Reduced PrepaYment Premium, for any prepayment pursuant to (S)(S)13.3(b)(ii)
or (v) of any Series Required Prepayment with respect to Notes of any series,
means an amount equal to the lesser of :
(a) the product obtained by multiplying (i) 0.5 times (ii) the Optional
Prepayment Premium for Notes of that series that would be payable if (x) a
portion of the aggregate unpaid principal amount of outstanding Notes of that
series that is equal to such Series Required Prepayment were being prepaid
pursuant to (S)8 and (y) the date fixed for such prepayment were the date
specified in the notice of such Series Required Prepayment given pursuant to
(S)13.3(d); and
(b) the sum of the amounts of interest on the respective unpaid portions of
the principal amounts of the outstanding Notes of such series from the Funding
Date for Notes of that series to the date of such prepayment at the Maximum
Lawful Rate minus the sum of (i) the sum of the amounts of accrued and unpaid
interest on the respective unpaid portions of the principal amounts of such
Notes that become due and payable on the date of such prepayment or became due
and payable before that date and remain unpaid, but excluding such Reduced
Prepayment Premium, plus (ii) all amounts that (x) were paid by or on behalf of
the Trust to the respective Holders pursuant to such Notes, or pursuant to any
of the other Basic Documents, before the date of such prepayment and (y)
constitute interest under applicable law.
Rejection Notice means:
(a) a notice delivered by the Majority Holders pursuant to (S)13.1(b)(ii) or
(S)13.4(c)(2); or
(b) a notice deemed to have been delivered by the Majority Holders pursuant
to (S)13.2.
Release Center means a Center that is identified in a Request for Release and
is thereby requested to be released from the Lien of the Mortgage.
Remaining Collateral means the Mortgaged Property except (i) any Excluded
Center and (ii) the Additional Rights with respect to such Excluded Center.
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To the Purchasers
April 1, 1994
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Rents, with respect to any Center, means the income, receipts, security
deposits, revenues, rents, issues and profits arising from the several Leases
with respect to such Center, including without limitation store rents, minimum
rents, additional rents, percentage rents, parking and maintenance charges and
fees, tax and insurance contributions, proceeds from the sale of utilities and
services, cancellation premiums and claims for damages arising from any breach
of any of such Leases.
Reporting Media means:
(a) the display designated as "Page 678" on the Telerate Access Service (or
such other display as may replace Page 678 on the Telerate Access Service) for
actively traded United States Treasury securities adjusted to constant
maturities;
(b) if the Telerate Access Service shall have ceased to exist or if yields
are otherwise not available or ascertainable by reference to such service, the
statistical release designated "H.15(519)" that is published weekly by the
Federal Reserve System and establishes yields on actively traded United States
Treasury securities adjusted to constant maturities; or
(c) if the Telerate Access Service shall have ceased to exist and such
statistical release shall have ceased to be published, such other reasonably
comparable index as shall have been selected by the Majority Holders.
Request for Release means an Officers' Certificate that:
(a) is delivered to each Holder;
(b) is dated the date of delivery thereof;
(c) identifies, by name and location, each Center that the Trust requests be
released from the Lien of the Mortgage; and
(d) if such Officers' Certificate is permitted to be delivered pursuant to
the third sentence of (S)13.6(a), states the clause of the third sentence of
(S)13.6(a) pursuant to which such Officers' Certificate is permitted to be
delivered.
Required Prepayment has the meaning assigned to such term in (S)13.3(a).
Securities Act means the Securities Act of 1933, or any successor statute, as
at the time in effect. Reference to a particular section of such Act shall
include a reference to the comparable section, if any, of such successor
statute.
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April 1, 1994
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Senior Secured Note Agreement means the Note Purchase Agreement dated August
6, 1987, between Company and The Variable Annuity Life Insurance Company,
American General Life and Accident Insurance Company, American General Life
Insurance Company of Delaware, Republic National Life Insurance Company and
American-Amicable Life Insurance Company, pursuant to which the Company issued
the Senior Secured Notes.
Senior Secured Notes means the Company's 9.10% Senior Secured Notes due 2001,
the obligations of the Company under such notes having been assumed by the Trust
pursuant to the Assumption Agreement dated as of April 5, 1988, among the Trust,
the Company and the holders of such notes at that date.
Senior Secured Noteholders means the Persons in whose names the Senior Secured
Notes are registered at the Closing Date.
Series Required Prepayment has the meaning assigned to such term in
(S)13.3(a).
Settlement Date has the following meaning:
(a) If (i) an Evaluation Event occurs and (ii) on the 11th Business Day
after such Evaluation Event, the Trust shall not have delivered to each of the
Holders a Nomination Notice, then Settlement Date means the Valuation Date that
was caused by such Evaluation Event.
(b) If (i) an Evaluation Event occurs, (ii) within ten Business Days after
such Evaluation Event, the Trust delivers to each of the Holders a Nomination
Notice, and (iii) on the 6th Business Day after the delivery to the Holders of
such Nomination Notice, the Majority Holders shall not have delivered to the
Trust notice of preliminary approval of one or more of the Centers described in
such Nomination Notice, then Settlement Date means the later of (x) the
Valuation Date that was caused by such Evaluation Event and (y) such 6th day.
(c) If (i) an Evaluation Event occurs, (ii) within ten Business Days after
such Evaluation Event, the Trust delivers to each of the Holders a Nomination
Notice, and (iii) within five Business Days after the delivery to the Holders of
such Nomination Notice, the Majority Holders deliver to the Trust notice of
preliminary approval of one or more of the Centers described in such Nomination
Notice, then Settlement Date means the later of (x) the Valuation Date that was
caused by such Evaluation Event and (y) the 60th Business Day after the delivery
to the Trust of such notice of preliminary approval.
Special Prepayment Premium, for (i) any prepayment pursuant to (S)(S)13.3(b)
(iii) or (iv) of any Series Required Prepayment with respect to Notes of any
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series or (ii) any amount applied to the prepayment of Notes of any series
pursuant to (S)14.1 or 14.2, means an amount equal to the lesser of:
(a) the Optional Prepayment Premium for Notes of that series that would be
payable if (i) a portion of the aggregate unpaid principal amount of the
outstanding Notes of that series that is equal to such Series Required
Prepayment or such amount applied to the prepayment of Notes of that series
pursuant to (S)14.1 or 14.2, as the case may be, were being prepaid pursuant to
(S)8 and (ii) the date fixed for such prepayment were the date specified in the
notice of such Series Required Prepayment given pursuant to (S)13.3(d) or the
date of the application of such amount pursuant to (S)14.1 or 14.2, as the case
may be; and
(b) the sum of the amounts of interest on the respective unpaid portions of
the principal amounts of the outstanding Notes of such series from the
respective Funding Dates for Notes of that series to the date of such prepayment
at the Maximum Lawful Rate minus the sum of (i) the sum of the amounts of
accrued and unpaid interest on the respective unpaid portions of the principal
amounts of such Notes that become due and payable on the date of such prepayment
or became due and payable before that date and remain unpaid, but excluding such
Special Prepayment Premium, plus (ii) all amounts that (x) were paid by or on
behalf of the Trust to the respective Holders pursuant to such Notes, or
pursuant to any of the other Basic Documents, before the date of such prepayment
and (y) constitute interest under applicable law.
Standard & Poor's means:
(a) Standard & Poor's Corporation;
(b) any corporation into or with which Standard & Poor's Corporation may be
merged or consolidated or that succeeds to all or substantially all the assets
of Standard & Poor's Corporation relating to and including its business of
rating securities; or
(c) if Standard & Poor's Corporation shall have dissolved or discontinued
its business of rating securities, a successor rating agency designated by the
Majority Holders.
Subordination Agreement, for any Lease, means a Subordination, Non-Disturbance
and Attornment Agreement executed by the lessee named in that Lease.
Subsidiary means a corporation or other Person at least a majority of the
outstanding voting shares (i.e., shares entitled to vote for the election of
directors, but excluding shares entitled so to vote only upon the happening of
some contingency unless such contingency shall have occurred) of which are owned
by the Trust, by one or more other Subsidiaries or by the Trust and one or more
other Subsidiaries.
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To the Purchasers
April 1, 1994
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Substantial Casualty Loss, with respect to any Mortgaged Center, means loss or
damage to such Center if the cost of repairing or restoring such Center could
reasonably be expected to exceed $100,000.
Supplemental Mortgage means a Supplemental Deed of Trust, Assignment of Rents,
Security Agreement and Financing Statement.
Survey means the documents enumerated in (S)4.8(f).
Surveyor means a Person that:
(a) holds a license, issued by the Texas Board of Professional Land
Surveying, authorizing such Person to practice land surveying as a Registered
Professional Land Surveyor in the State of Texas; and
(b) is reasonably acceptable to each of the Purchasers.
Tenant Certificate, for any Lease, means a Tenant Estoppel Certificate
executed by the lessee named in that Lease.
Title Defect, with respect to any Mortgaged Center, means:
(a) that the Lien of the Mortgage is not a valid, perfected, first priority
lien on such Mortgaged Center, subject only to (i) Approved Encumbrances with
respect to such Mortgaged Center or (ii) one or more of the Permitted
Encumbrances with respect to such Mortgaged Center that were created after the
date such Mortgaged Center first became a Mortgaged Center; or
(b) there exists on such Mortgaged Center a Lien, other than (i) Approved
Encumbrances with respect to such Mortgaged Center or (ii) one or more of the
Permitted Encumbrances with respect to such Mortgaged Center that were created
after the date such Mortgaged Center first became a Mortgaged Center.
Title Event, with respect to any Mortgaged Center, means the discovery by any
Executive Officer or any Holder of any Title Defect with respect to such
Mortgaged Center.
Title Opinion, with respect to any Center, means one or more opinions of
Andrews & Kurth L.L.P., or other counsel acceptable to the Majority Holders,
that:
(a) are in the form of Exhibit W, with appropriate insertions as indicated
in such form; and
(b) identify as the Subject Property, as that term is def1ned in Exhibit W,
(i) the Base Real Property with respect to such
<PAGE>
To the Purchasers
April 1, 1994
Page 92
Center and (ii) any easement interest appurtenant to such Base Real Property
title to which easement interest was insured by the Base Title Policy with
respect to such Center.
Transaction Documents means the Basic Documents and the Amendment, the Amended
Senior Secured Note Agreement, the Guaranty Agreements, the Financing Statement,
any Other Instrument, any Officers' Certificate, each of the Indemnity
Agreements, any certificate of the Secretary of the Trust or of any Subsidiary,
and any other document now or hereafter delivered by or on behalf of the Trust
or any Subsidiary pursuant to, or in connection with any of the transactions
contemplated by, this Agreement.
Treasury Based Rate, at the Funding Date for Notes of any series, means:
(a) the weekly average yield on actively traded United States Treasury
securities adjusted to a constant maturity equal to the weighted average life to
scheduled maturity (computed in accordance with generally accepted financial
practice) of the Notes of that series, which weekly average yield shall be
determined by reference to the most recent Reporting Media that became publicly
available at least two Business Days before the date of the delivery pursuant to
(S)3(a) of the Officers' Certificate that states the intention of the Trust to
issue and sell Notes of that series; or
(b) if the weighted average life to scheduled maturity of the Notes of that
series is not equal to the constant maturity of a United States Treasury
security for which a weekly average yield is published in such Reporting Media,
the yield obtained by linear interpolation (calculated to the nearest one-
twelfth of a year) from the weekly average yields of United States Treasury
securities for which weekly average yields are published in such reporting
Media.
Trust has the meaning assigned to that term in the first paragraph of this
Agreement. The term "Trust" shall also include any successor entity pursuant to
(S)9.11 or otherwise.
Trustee means John Madsen, as trustee under the Mortgage, and any substitute
or successor trustee under the Mortgage.
Valuation Date means the date on which a Valuation Process is completed and a
value established for each Center that is part of the Collateral.
Valuation Process means the procedures contained in (S)13.1 for valuation of
each Center that is part of the Collateral.
<PAGE>
To the Purchasers
April 1, 1994
Page 93
Valuation Report means an Officers' Certificate that:
(a) is dated the date of delivery thereof;
(b) states the Trust's good faith estimate of the Market Value at the date
of such Officers' Certificate of each Center that is part of the Collateral;
(c) states the sum of those Market Values; and
(d) is accompanied by a written report of the procedures followed by the
Trust in ascertaining those Market Values.
Wholly-Owned Subsidiary means a corporation or other Person all of the
outstanding shares of which are owned by the Trust, by one or more other
Wholly-Owned Subsidiaries or by the Trust and one or more other Wholly-Owned
Subsidiaries.
Work has the meaning assigned to that term in (S)14.2.
(S)18.2 Accounting Terms. For the purposes of this Agreement, all accounting
terms not otherwise defined herein shall have the meanings assigned to such
terms in accordance with GAAP.
(S)18.3 References to Instruments.
(a) Unless the context otherwise indicates, references in this Agreement to
a particular section, exhibit or schedule are to the corresponding section of,
or the corresponding exhibit or schedule to, this Agreement.
(b) In the event that any Operative Document is amended, modified or
supplemented in accordance with the provisions of this Agreement and such
Operative Document, references herein to such Operative Document shall be to
such Operative Document as so amended, modified or supplemented.
(S)18.4 Singular and Plural. The def1nitions contained in (S)18.1 are equally
applicable to both the singular and plural form of the terms defined therein.
(S)18.5 Determination of Outstanding Notes For Certain Purposes. Solely for
purposes of determining the required percentage of the aggregate principal
amount of outstanding Notes, the Holders of which are required or permitted to
take any action under this Agreement, and for purposes of determining the
Majority Holders, any Note held by the Trust or any of its affiliates shall be
deemed not to be outstanding.
(S)19 Expenses. Whether or not the transactions contemplated by this Agreement
shall be consummated, but subject to the provisions of (S)24, the Trust agrees
to pay on demand all reasonable expenses in connection with such transactions
and in connection with any amendments or waivers (whether or not the same become
<PAGE>
To the Purchasers
April 1, 1994
Page 94
effective) under or in respect of any of the Basic Documents, including, without
limitation: (a) the cost and expenses of preparing and reproducing each of the
Basic Documents, of furnishing all opinions of counsel for the Trust and all
certificates on behalf of the Trust, and of the Trust's performance of and
compliance with all agreements and conditions contained herein on its part to be
performed or complied with; (b) the cost of delivering to each Purchaser's
principal office, insured to the satisfaction of such Purchaser, each Note sold
to such Purchaser and any Note or Notes delivered to either of you upon any
substitution of a Note or Notes pursuant to (S)11 and any of your delivering any
Note or Notes insured to the satisfaction of any of you, upon any such
substitution; (c) the reasonable fees, expenses and disbursements of your
special counsel, Fulbright & Jaworski L.L.P., in connection with such
transactions and any such amendments or waivers; (d) the reasonable out-of-
pocket expenses incurred by any of you in connection with such transactions and
any such amendments or waivers; and (e) all taxes, other than taxes on or
measured by income, including all recording and filing fees and all transfer,
documentary stamp or similar taxes (including any interest and penalties in
respect thereof) at any time payable in connection with the execution and
delivery of any Basic Document or in connection with the issue and sale by the
Trust and purchase by each of you of the Note or Notes. In addition to the
foregoing, the Trust agrees to pay the cost (not to exceed $1,200) of obtaining
a private placement number for each series of the Notes and hereby authorizes
the submission of this Agreement to Standard & Poor's for the purpose of
obtaining such number. If any portion of any amount payable pursuant to this
(S)19 is not paid within five days after the date on which such amount becomes
due and payable, the portion of such amount that was not paid shall bear
interest (computed on the basis of a 360-day year of twelve 30-day months) from
the date such amount became due and payable until such portion is paid at the
rate of 10% per annum. Accrued and unpaid interest on the portion of such amount
that was not paid when such amount became due and payable shall be due and
payable on demand.
(S)20 Survival of Representations and Warranties. All representations and
warranties contained in this Agreement shall survive (i) the execution and
delivery of this Agreement, (ii) any investigation at any time made by any of
you or on the behalf of any of you, and (iii) the purchase of the Notes by each
of you under this Agreement. All statements contained in any of the Operative
Documents shall be deemed to be representations and warranties contained in this
Agreement. This Agreement shall survive the Closing and each Funding and the
delivery of documents at the Closing and at each Funding.
(S)21 Restriction on Transfer of Notes. Each Purchaser agrees that if (i) at
the time of any proposed transfer by such Purchaser of any Note, such Purchaser
is an affiliate of American General Corporation, and (ii) as a result of such
proposed transfer, less than a majority in aggregate principal amount of the
then outstanding Notes of all series would be held by American General or its
affiliates (or any of their respective nominees), then such Purchaser will not,
without the prior written consent of the Trust, transfer such Note to any
Person (other than American General Corporation or any of its nominees) that is
not an affiliate of American General Corporation (or a nominee of such an
affiliate) at the time of such transfer. The foregoing provisions of
<PAGE>
To the Purchasers
April 1, 1994
Page 95
this (S)21 shall not apply to any transfer or proposed transfer of any Note by
any Holder that is not an affiliate of American General Corporation at the time
of such transfer. Each Purchaser further agrees that if (i) as a result of any
proposed merger or sale of securities of such Purchaser, such Purchaser would
cease to be an affiliate of American General Corporation, and (ii) as a result
of such Purchaser's ceasing to be such an affiliate, less than a majority in
aggregate principal amount of the then outstanding Notes of all series would be
held by American General Corporation or its affiliates (or any of their
respective nominees), then such Purchaser shall, before the effective date of
such proposed merger or sale of securities, transfer the Notes then held by such
Purchaser to American General Corporation (or one of its nominees) or to one or
more affiliates of American General Corporation (or their respective nominees).
Any failure on the part of any Holder to comply with foregoing provisions of
this (S)21 shall not give rise to any defense or right of setoff in respect of
the obligations of the Trust under any Operative Document.
(S)22 Amendment and Waiver.
(a) Any term, covenant, agreement or condition of any Basic Document may,
with the consent of the Trust, be amended, or compliance therewith may be
waived, or any consent of the Majority Holders required by this Agreement may be
given (either generally or in a particular instance and either retroactively or
prospectively), by one or more substantially concurrent written instruments
signed by the Majority Holders, provided that:
(i) no such amendment, waiver or consent shall (u) change (S)(S)1.2 or 5.6
of the Mortgage, (v) change the rate, or extend the time of payment, of interest
on any of the Notes or modify any of the provisions of this Agreement or of the
Notes with respect to the payment or the prepayment thereof pursuant to any
provision of this Agreement, (w) reduce the percentage of the aggregate
principal amount of outstanding Notes the Holders of which are required to
approve any such amendment or effectuate any such waiver or give any such
consent, (x) amend this subsection (a), (y) consent to any assignment by the
Trust of any of its rights or obligations hereunder, or (z) amend (S)25, unless
such amendment or waiver is approved, or such consent is given, by the Holders
of all the outstanding Notes; and
(ii) no such waiver shall extend to or affect any obligation not expressly
waived or impair any right consequent thereon.
(b) Any amendment, waiver or consent pursuant to this (S)22 shall apply
equally to all Holders and shall be binding upon (i) such Holders, (ii) each
future holder of any Note and (iii) the Trust. No notation need be made on the
Notes at the time outstanding in respect of any such amendment, waiver or
consent, but any Note executed and delivered thereafter may, at the option of
the Trust, bear a notation referring to such amendment, waiver or consent then
in effect.
<PAGE>
To the Purchasers
April 1, 1994
Page 96
(S)23 Notices. Except as otherwise provided in this Agreement, notices and
other communications pursuant to this Agreement shall be in writing and shall be
delivered by facsimile transmission (confirmed in writing by certified mail,
return receipt requested, postage prepaid), (i) if to any Purchaser, to such
Purchaser's facsimile transmission number set forth in Schedule I (or to such
other facsimile transmission number as such Purchaser shall have furnished to
the Trust in writing for purposes of receiving such notices or other
communications), with confirmation mailed to such Purchaser at the address set
forth for such purpose in Schedule I (or at such other address as such Purchaser
shall have furnished to the Trust in writing for purposes of receiving such
confirmations), (ii) if to any other Holder, to such Holder's facsimile
transmission number as it appears on the register maintained by the Trust
pursuant to (S)11, with confirmation mailed to such Holder at the address set
forth for such purpose on that register, or (iii) if to the Trust, to (713) 866-
6049 (or to such other facsimile transmission number as the Trust shall have
furnished to each Purchaser and to each other Holder in writing for purposes of
receiving such notices or other communications), Attention: Executive Vice
President and Chief Financial Officer, with confirmation mailed to the Trust at
2600 Citadel Plaza Drive, Houston, Texas 77008 (or at such other address as the
Trust shall have furnished to each Purchaser and to each other Holder in writing
for purposes of receiving such confirmations). Such notices and other
communications shall be effective when delivered by facsimile transmission in
accordance with this (S)23.
(S)24 Usury. It is the intention of the parties hereto to comply with (i)
applicable usury laws of the State of Texas and (ii) if the maximum lawful
nonusurious rate of interest that any Holder is permitted to take or receive
from, or charge to, the Trust shall be governed by the federal laws of the
United States of America, such federal laws. Accordingly, notwithstanding any
provision to the contrary in this Agreement, the Notes or any other Basic
Document, in no event shall this Agreement, the Notes or such other Basic
Document require the payment or permit the collection of interest in excess of
the maximum nonusurious rate or amount permitted by such laws. If any such
excess is (except for the application of this (S)24) contracted for, or charged
or received, pursuant to or in connection with this Agreement, the Notes or any
other Basic Document, or if the maturity of the indebtedness evidenced by this
Agreement, the Notes or any other Basic Document is accelerated in whole or in
part, or in the event that all or part of the principal of or interest on the
Notes shall be prepaid, so that under any circumstances the amount of interest
contracted for, charged or received pursuant to or in connection with the Notes,
this Agreement or any other Basic Document shall exceed the maximum nonusurious
amount of interest permitted by such laws, then (i) the provisions of this (S)24
shall govern and control, (ii) neither the Trust nor any other Person shall be
obligated to pay the amount of such interest that is in excess of the maximum
amount of interest permitted by such laws, (iii) any such excess which may have
been collected shall, at the option of the Holder or Holders, be either (x)
applied as a credit against the unpaid principal amount of the Notes or accrued
and unpaid interest on such unpaid principal amount or (y) refunded to the
Trust, and (iv) the effective rate of interest shall be automatically reduced to
the maximum lawful nonusurious rate allowed under such laws. Without limiting
the foregoing provisions of this (S)24, all calculations of the rate of interest
contracted for,
<PAGE>
To the Purchasers
April 1, 1994
Page 97
charged or received under the Agreement, the Notes or any other Basic Document
that are made for the purposes of determining whether such rate exceeds the
maximum lawful nonusurious rate shall be made, to the extent permitted by such
laws, by amortizing, prorating, allocating and spreading during the period of
the full stated term of the loan evidenced hereby, all interest at any time
contracted for, charged or received by any Holder pursuant to any Basic
Document.
(S)25 Assignment. Except as otherwise provided in this Agreement, this
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and assigns of the Holders whether so expressed or
not, and, in particular, shall inure to the benefit of and be enforceable by
each of you, provided that, except as set forth in (S)9.11, the Trust may not
assign any of its rights or obligations under this Agreement, the Notes or any
other Basic Document without the prior written consent of each Holder.
(S)26 Entire Agreement. Except as stated in (S)20, this Agreement (including,
without limitation, the exhibits and schedules hereto) (i) embodies the entire
agreement between each of you and the Trust with respect to the subject matter
hereof, and (ii) supersedes all prior agreements and understandings relating to
that subject matter.
(S)27 Governing Law. This Agreement shall be construed and enforced in
accordance with, and governed by, the laws of the State of Texas.
(S)28 Headings. The table of contents and headings in this Agreement are for
purposes of reference only and shall not limit or otherwise affect the meaning
hereof.
(S)29 Multiple Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.
(S)30 Severability. If any of the provisions of this Agreement shall be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions of this Agreement shall not in any
way be affected thereby.
If this Agreement is satisfactory to you, please so indicate by signing the
form of agreement on the accompanying counterparts of this Agreement and return
one of the
<PAGE>
To the Purchasers
April 1, 1994
Page 98
same to the Trust, whereupon this letter shall become a binding agreement
between you and the Trust in accordance with its terms.
Very truly yours,
WEINGARTEN REALTY INVESTORS
By: [SIGNATURE OF JOSEPH W.
ROBERTSON, JR. APPEARS HERE]
Name: Joseph W. Robertson, Jr.
Title: Executive Vice President
The foregoing Agreement is hereby
agreed to as of the date thereof.
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY, and
AMERICAN GENERAL LIFE INSURANCE COMPANY
BY: [SIGNATURE OF JULIA S. TUCKER]
Name: Julia S. Tucker
Title: Investment Officer
<PAGE>
Schedule I To Note
Purchase Agreement
Schedule of Purchasers
<TABLE>
<CAPTION>
FACSIMILE
TRANSMISSION
NUMBER OF
NAME OF PURCHASER ADDRESS OF PURCHASER PURCHASER
<S> <C> <C>
The Variable Annuity Life c/o American General Corporation (713) 831-1366
Insurance Company (a) 2929 Allen Parkway
Houston, Texas 77019
Attention: Investment Research
Department, A37-01
American General Life c/o American General Corporation (713) 831-1366
Insurance Company (b) 2929 Allen Parkway
Houston, Texas 77019
Attention: Investment Research
Department, A37-01
</TABLE>
------------------
(a) Until The Variable Annuity Life Insurance Company (Taxpayer I.D. No. 74-
1625348) otherwise specifies pursuant to (S)12.2 of the Note Purchase Agreement,
each payment to The Variable Annuity Life Insurance Company on account of any
outstanding Note held by it shall be made by
(i) crediting, by wire transfer of immediately available funds, AC0125-821-9
at State Street Bank and Trust Company (ABA #011000028), Boston, Massachusetts
02101,
(ii) referencing The Variable Annuity Life Insurance Company and Fund Number
PA 54, and
(iii) providing sufficient information (designated OBI) with such payment to
identify the source and application of such funds (including (i) the class and
series of such Note, (ii) the Interest Rate and Maturity Date for Notes of that
series, and (iii) if such payment includes any amount other than the amount of
the Monthly Installment for such Note that is due and payable on the date of
such payment, (x) the section of the Note Purchase Agreement pursuant to which
each portion of such payment is made and (y) whether such portion constitutes
principal, premium or interest).
Until The Variable Annuity Life Insurance Company otherwise specifies pursuant
to (S)12.2 of the Note Purchase Agreement, duplicate notices of such payment
shall be delivered, in the manner provided in (S)23 of the Note Purchase
Agreement, to
I-1
<PAGE>
The Variable Annuity Life Insurance Company and PA 54
c/o State Street Bank and Trust Company
State Street South
Ann Hutchinson Offices, 2nd Floor
108 Myrtle Street
Two New Port Office Park
North Quincy, Massachusetts 02171
Facsimile Transmission Number: (617) 985-4923
and
The Variable Annuity Life Insurance Company
c/o American General Corporation
2929 Allen Parkway
Houston, Texas 77019
Attention: Investment Research
Department, A37-01
Facsimile Transmission Number: (713) 831-1366
Until The Variable Annuity Life Insurance Company otherwise specifies pursuant
to (S)23 of the Note Purchase Agreement, all other notices and communications to
The Variable Annuity Life Insurance Company pursuant to the Note Purchase
Agreement shall be delivered, in the manner provided in (S)23 of the Note
Purchase Agreement, to the facsimile transmission number and address of The
Variable Annuity Life Insurance Company set forth in the schedule above.
(b) Until American General Life Insurance Company (Taxpayer I.D. No.25-
0598210) otherwise specifies pursuant to (S)12.2 of the Note Purchase Agreement,
each payment to American General Life Insurance Company on account of any
outstanding Note held by it shall be made by
(i) crediting, by wire transfer of immediately available funds, AC-0125-881-
3 at State Street Bank and Trust Company (ABA #011000028), Boston,
Massachusetts 02101,
(ii) referencing American General Life Insurance Company and Fund Number PA
40, and
(iii) providing sufficient information (designated OBI) with such payment to
identify the source and application of such funds (including (i) the class and
series of such Note, (ii) the Interest Rate and Maturity Date for Notes of that
series, and (iii) if such payment includes any amount other than the amount of
the Monthly Installment for such Note that is due and payable on the date of
such payment, (x) the section of the Note Purchase Agreement pursuant to which
each portion of such payment is made and (y) whether such portion constitutes
principal, premium or interest).
Until American General Life Insurance Company otherwise specifies pursuant to
(S)12.2 of the Note Purchase Agreement, duplicate notices of such payment shall
be delivered, in the manner provided in (S)23 of the Note Purchase Agreement, to
I-2
<PAGE>
American General Life Insurance Company and PA 40
c/o State Street Bank and Trust Company
State Street South
Ann Hutchinson Offices, 2nd Floor
108 Myrtle Street
Two New Port Office Park
North Quincy, Massachusetts 02171
Facsimile Transmission Number: (617) 985-4923
and
American General Life Insurance Company
c/o American General Corporation
2929 Allen Parkway
Houston, Texas 77019
Attention: Investment Research
Department, A37-01
Facsimile Transmission Number: (713) 831-1366
Until American General Life Insurance Company otherwise specifies pursuant to
(S)23 of the Note Purchase Agreement, all other notices and communications to
American General Life Insurance Company pursuant to the Note Purchase Agreement
shall be delivered, in the manner specified in (S)23 of the Note Purchase
Agreement, to the facsimile number and address of American General Life
Insurance Company set forth in the schedule above.
I-3
<PAGE>
Exhibit A to Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
Variable Issue Senior Secured Note
Series [series designated pursuant to (S)3(a)(v) of the Note
Purchase Agreement], Due [Maturity Date for Notes of the designated series]
No. [designated series] - [number of Note, determined Houston, Texas
pursuant to (S)l(p) of the Note Purchase Agreement] [Funding Date for Notes
$[principal amount of Note] of the designated series]
Weingarten Realty Investors, a Texas real estate investment trust (the
"Trust", which term shall include any successor entity pursuant to (S)9.11 of
the Note Purchase Agreement hereinafter referred to or otherwise), for value
received, hereby promises to pay to [name of Purchaser that has given a notice
pursuant to (S)3(d) of the Note Purchase Agreement stating that such Purchaser
intends to purchase a principal amount of Notes of the designated series], or
registered assigns, the principal amount of $[principal amount stated in such
notice] on [Maturity Date for Notes of the designated series] (the "Maturity
Date"), or, if such date is not a Business Day (as that term is defined in the
Note Purchase Agreement hereinafter referred to) on the next Business Day, and
to pay interest (computed on the basis of a 360-day year of twelve 30-day
months) on the unpaid portion of such principal amount from the date of this
Note until the unpaid portion of such principal amount becomes due and payable
at the rate of [Interest Rate for Notes of the designated series]% per annum
(the "Interest Rate"), provided that if, pursuant to any provision of such Note
Purchase Agreement, any part of the unpaid portion of such principal amount
shall bear interest during any period at a rate per annum equal to the Default
Rate (as that term is defined in such Note Purchase Agreement) for the Series
[designated series] Notes (as that term is hereinafter defined), then such part
shall bear interest during that period at the rate of [Default Rate for Notes of
the designated series]% per annum but shall not also bear interest during that
period at the Interest Rate.
Payments of principal, premium, if any, and interest on this Note shall be
made at the chief executive office of the Trust at 2600 Citadel Plaza Drive,
Houston, Texas, or at such other office or agency in the City of Houston, State
of Texas, as the Trust shall have designated by written notice to the registered
holder of this Note.
The Trust has duly authorized the issue and sale of not more than $30,000,000
aggregate principal amount of the Trust's Variable Issue Senior Secured Notes
pursuant to a Note Purchase Agreement dated as of April 1, 1994 (as amended from
time to time in accordance with the provisions thereof, the "Note Purchase
Agreement"), between the Trust and The Variable Annuity Life Insurance Company
and
A-1
<PAGE>
American General Life Insurance Company. This Note is one of the Trust's
Variable Issue Senior Secured Notes (the "Notes") issued pursuant to the Note
Purchase Agreement, and the registered holder of this Note is entitled to the
benefits of the Note Purchase Agreement and may enforce any of the obligations
of the Trust contained in, and exercise any of the remedies available to such
holder pursuant to, the Note Purchase Agreement to the extent therein provided.
Except as otherwise stated herein, capitalized terms used herein and not
otherwise defined herein shall have the respective meanings provided in the Note
Purchase Agreement.
The payment of all amounts due and payable, or to become due and payable,
pursuant to the Notes, as well as the payment of certain other amounts, is
equally and ratably secured by the lien, security interest and assignment of
rents created by a Deed of Trust, Assignment of Rents, Security Agreement and
Financing Statement made as of July 27, 1994 (as supplemented from time to time
in accordance with the provisions thereof and of the Note Purchase Agreement,
the "Mortgage"), by the Trust to John Madsen, as trustee (together with any
substitute or successor trustee under the Mortgage, the "Trustee"), subject,
however, to the provisions of (S)5.6 of the Mortgage. The registered holder of
this Note is entitled to the benefits of the Mortgage, to which reference is
made for a description of the property thereby subjected to such lien, security
interest and assignment, the nature and extent of the security provided for
therein, and the respective rights thereunder of the Beneficiaries (as that term
is defined in the Mortgage), the Trustee and the Trust.
The payment of all amounts due and payable, or to become due and payable,
pursuant to the Notes, as well as the payment of certain other amounts, has been
or will be irrevocably and unconditionally guaranteed by each Guaranteeing
Subsidiary pursuant to the Guaranty Agreement in which such Guaranteeing
Subsidiary is identified as the Guarantor. The registered holder of this Note is
entitled to the benefits of each of the Guaranty Agreements, to which reference
is made for a description of the respective rights thereunder of the
Beneficiaries (as that term is defined in such Guaranty Agreement) and the
Guaranteeing Subsidiary identified therein as the Guarantor.
The Notes are limited in aggregate principal amount to the aggregate principal
amount of Notes that are issued and sold pursuant to the Note Purchase Agreement
and outstanding on the date on which the Funding Period terminates. As provided
in the Note Purchase Agreement, the Notes are issuable in not more than six
series, and the terms of the Notes of a particular series may vary from the
terms of the Notes of each other series to the extent provided in the Note
Purchase Agreement. This Note is one of the series specified in its title (the
"Series [designated series] Notes"). The Notes of each series are limited in
aggregate principal amount to the aggregate principal amount of Notes of that
series that are issued and sold pursuant to the Note Purchase Agreement at the
Funding for Notes of that series, which, in the case of the Series [designated
series] Notes is $[aggregate principal amount of Notes of the designated series,
determined pursuant to (S)3(a)(iv) of the Note Purchase Agreement].
Unless such accrued and unpaid interest shall earlier have become due and
payable pursuant to the Note Purchase Agreement, unpaid interest, accrued to the
date
A-2
<PAGE>
on which the same becomes due and payable, on the unpaid portion of the
principal amount of this Note shall be payable on [(i) if the Funding Date for
Notes of the designated series is after January 26,1995, "February 27,1995 (or,
if such date is not a Business Day, on the next Business Day)" and (ii) if the
Funding Date for Notes of the designated series is on or before January 26,
1995, the first of the Interest Payment Dates that follows such Funding Date",
and on the 27th day of each succeeding month through and including February 27,
1995 (or, if such date or day is not a Business Day, on the next Business
Day)"]. If any portion of the amount of such accrued and unpaid interest is not
paid on the date such amount becomes due and payable, the portion of such amount
that was not paid shall bear interest (computed on the basis of a 360-day year
of twelve 30-day months), payable on demand, from that date until the date such
portion is paid at the rate of [Default Rate for Notes of the designated
series]% per annum.
Unless the unpaid portion of such principal amount and such accrued and unpaid
interest shall earlier have become due and payable pursuant to the Note Purchase
Agreement, the unpaid portion of the principal amount of this Note, and accrued
and unpaid interest on the unpaid portion of such principal amount, shall be due
and payable following the date on which the Funding Period terminates in
[Designated Number of Installments for Notes of the designated series]
consecutive monthly installments. The f1rst of such monthly installments shall
be due and payable on March 27, 1995, and a subsequent monthly installment shall
be due and payable on the 27th day of each succeeding month (or, if such day is
not a Business Day, on the next Business Day) until the unpaid portion of such
principal amount, and accrued and unpaid interest on the unpaid portion of such
principal amount, are paid. The amount of each of such monthly installments is
determined pursuant to (S)l(k) of the Note Purchase Agreement and shall be
applied first to the payment of unpaid interest, accrued to the date on which
such monthly installment becomes due and payable, on the unpaid portion of the
principal amount of this Note, with the balance of the amount of such monthly
installment applied to the unpaid portion of such principal amount. The Monthly
Installment Amount for the Series [designated series] Notes on each payment date
for the Series [designated series] Notes (other than the Maturity Date) is
$[first Monthly Installment Amount], and the Monthly Installment Amount for the
Series [designated series] Notes on the Maturity Date is $[1ast Monthly
Installment Amount]. If any portion of the amount of any of such monthly
installments is not paid on the date such monthly installment becomes due and
payable, the portion of such amount that was not paid shall bear interest
(computed on the basis of a 360-day year of twelve 30-day months), payable on
demand, from that date until the date such portion is paid at the rate of
[Default Rate for Notes of the designated series]% per annum.
The unpaid principal amount of this Note, or a portion thereof, is subject to
required or optional prepayment, in certain cases with a premium and in other
cases without a premium, all as provided in the Note Purchase Agreement. Except
as provided in (S)8 of the Note Purchase Agreement, the Trust does not have the
right to pay all or any portion of such principal amount before the time the
same shall have become due and payable pursuant to the Note Purchase Agreement.
A-3
<PAGE>
Upon the occurrence of any Event of Default described in subsections (g) or
(h) of (S)16.1 of the Note Purchase Agreement, the unpaid portion of the
principal amount of this Note that is not already due and payable shall, and
upon the occurrence and during the continuation of any other Event of Default,
the unpaid portion of such principal amount that is not already due and payable
may, become due and payable, together with accrued and unpaid interest and a
premium, all as provided in the Note Purchase Agreement.
If any portion of the amount of any premium on this Note is not paid on the
date such amount becomes due and payable, the portion of such amount that was
not paid shall bear interest (computed on the basis of a 360-day year of twelve
30-day months), payable on demand, from that date until the date such portion is
paid at the rate of [Default Rate for Notes of the designated series]% per
annum.
The principal of, and premium (if any) and interest on, this Note, as well as
certain other amounts, may become due and payable pursuant to one of the other
Basic Documents, or pursuant to one of the Guaranty Agreements, at times stated
therein but not specified in this Note, and this Note shall not be construed to
limit the obligation of the Trust or any Guaranteeing Subsidiary to pay any of
those amounts in accordance with the terms of such Basic Document or such
Guaranty Agreement or to limit the right of the registered holder of this Note
to enforce such payment.
The Note Purchase Agreement permits, with certain exceptions provided therein,
the amendment of any Basic Document, waiver of compliance by the Trust with any
term, covenant, agreement or condition of any Basic Document, or the consent of
the Majority Holders to certain actions, in each case by one or more
substantially concurrent written instruments signed by the Majority Holders. Any
amendment, waiver or consent pursuant to (S)22 of the Note Purchase Agreement
shall apply equally to all Holders and shall be binding upon the registered
holder of this Note, each future registered holder of this Note, and the Trust.
This Note is a registered Note and is transferable upon fulfillment of the
conditions to registration of transfer contained in (S)11 of the Note Purchase
Agreement. References in this Note to the "registered holder" hereof shall mean
the Person in whose name this Note is registered on the register kept by the
Trust pursuant to (S)11 of the Note Purchase Agreement, and the Trust may treat
such Person as the owner and holder of this Note for the purpose of receiving
payment of the principal of, and premium (if any) and interest on, this Note and
for all other purposes.
If an Event of Default shall occur and the registered holder of this Note,
whether acting alone or together with other Holders, shall take any action to
enforce any obligation of the Trust under any Basic Document or any obligation
of any Guaranteeing Subsidiary under any Guaranty Agreement, then the Trust
shall pay to the registered holder of this Note such additional amounts as shall
be sufficient to cover the costs and expenses incurred by such registered holder
in taking that action, including, without limitation, reasonable attorneys'
fees, expenses and disbursements.
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<PAGE>
This Note is subject in all respects to (S)24 of the Note Purchase Agreement,
which is hereby incorporated by reference in this Note.
The Trust hereby waives, to the fullest extent permitted by law, grace,
notice, presentment for payment, notice of non-payment, protest, notice of
protest, notice of acceleration of maturity (except as expressly required by
the Note Purchase Agreement), notice of intent to accelerate maturity, and any
other action on the part of the registered holder of this Note that is not
expressly required by any Basic Document but would otherwise be required as a
condition to the enforcement of this Note or the collection of any amount
payable pursuant hereto.
This Note shall be construed and enforced in accordance with, and governed by,
the laws of the State of Texas.
This Note is dated [Funding Date for Notes of the designated series], which is
the Funding Date for the Series [designated series] Notes.
As provided in the Note Purchase Agreement, the Trust has caused this Note to
be executed on behalf of the Trust by its duly authorized officer.
WEINGARTEN REALTY INVESTORS
By:
Name: [Name of Officer]
Title: [Title of Officer]
A-5
<PAGE>
Exhibit B to Note
Purchase Agreement
AMENDMENT NO. 2 TO NOTE PURCHASE AGREEMENT
THIS AMENDMENT NO. 2 TO NOTE PURCHASE AGREEMENT (this "Amendment") is entered
into as of [the Closing Date], between Weingarten Realty Investors, a Texas real
estate investment trust (the "Trust"), and The Variable Annuity Life Insurance
Company ("VALIC"), American General Life and Accident Insurance Company ("AGLA")
and American General Life Insurance Company ("AGL") (VALIC, AGLA and AGL are
collectively referred to herein as the "Holders").
W I T N E S S E T H :
WHEREAS, Weingarten Realty, Inc., a Texas corporation (the "Company"), VALIC,
AGLA, American General Life Insurance Company of Delaware ("AGLICD"), Republic
National Life Insurance Company ("RNLIC") and American-Amicable Life Insurance
Company ("AALIC") entered into a Note Purchase Agreement dated as of August 6,
1987 (as amended by that certain Amendment to Note Purchase Agreement dated to
be effective as of March 31, 1991, among the Trust and the Holders, the
"Agreement"), which provides for, among other things, the issuance and sale of
up to $35,000,000 in aggregate principal of Notes (as defined in the Agreement);
WHEREAS, the Trust has assumed the obligations of the Company under the
Agreement pursuant to an Assumption Agreement dated as of April 5, 1988, among
the Company, the Trust and the holders of Notes whose signatures are affixed
thereto;
WHEREAS, AGL is the successor in interest to AALIC and RNLIC, and AGLA is the
successor in interest to AGLICD;
WHEREAS, the Holders together hold all of the Notes outstanding as of the date
hereof;
WHEREAS, the parties hereto desire to amend the Agreement as hereinafter set
forth;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:
(S)1. Terms used in this Amendment that are not otherwise defined herein
shall have the meanings given to such terms in the Agreement.
(S)2. Section 7 of the Agreement is hereby amended by inserting the following
sentence immediately after the heading of such section:
B-1
<PAGE>
The Company may, at its option, prepay the Notes (i) prior to the August 6,
1998, pursuant to Section 7.2(a) and (ii) on or after August 6, 1998, pursuant
to Section 7.1. The Company may be required to prepay the Notes from time to
time pursuant to Sections 7.2(b)-(d).
(S)3. Section 7.2(a) of the Agreement is hereby amended and restated in its
entirety to read as follows:
(a) The Company may, at its option, subject to the restrictions contained in
the immediately succeeding sentence and after having timely given the notice
required by Section 7.3, prepay all or any portion of the aggregate unpaid
principal amount of the outstanding Notes, pro rata, at any time prior to August
6, 1998, at a price equal to the sum of (i) the aggregate unpaid principal
amount of such Notes to be prepaid together with accrued and unpaid interest on
each principal amount so prepaid to the date specified in the notice for such
prepayment plus (ii) the Optional Prepayment Premium for such prepayment. Each
prepayment pursuant to this Section 7.2(a) of less than the entire aggregate
unpaid principal amount of the outstanding Notes (i) shall be in an amount not
less than $1,000,000 and shall be in an integral multiple of $1,000,000 and (ii)
the aggregate unpaid principal amount of such Notes to be prepaid and the
Optional Prepayment Premium that is payable as a result of such prepayment shall
be allocated among the outstanding Notes in proportion, as nearly as
practicable, to the respective unpaid principal amounts of those Notes, with
adjustments, to the extent practicable, to compensate for any prior prepayments
not made exactly in that proportion.
(S)4. The penultimate sentence of Section 7.3 of the Agreement is hereby
amended to read as follows:
In the event that prepayment is to be made pursuant to Section 7.2(a), the
Company shall further specify the Optional Prepayment Premium applicable to any
Notes to be so prepaid together with all calculations relevant thereto.
(S)5. Section 9.1 of the Agreement is hereby amended and restated in its
entirety to read as follows:
The Company will not at any time create, incur or assume, or otherwise
become or remain directly liable with respect to, any Short Term Debt in excess
of the greater of (i) $200,000,000 or (ii) 33% of Total Debt; provided, however,
that for purposes of the following test, Short Term Debt shall be reduced by (i)
floating rate Investments of equivalent amount owned by the Company and its
Consolidated Subsidiaries provided such Investments are permitted by Section
9.3, and (ii) the Market Value as of the date of determination, as determined in
good faith by the Chief Financial Officer of the Company, of U.S. Governmental
B-2
<PAGE>
Securities that are owned by the Company and its Consolidated Subsidiaries
provided such Investments are permitted by Section 9.3.
(S)6. The definition "Consolidated Distributable Cash Flow Available for
Restricted Payments" contained in Section 15.1 of the Agreement is hereby
amended and restated in its entirety to read as follows:
"Consolidated Distributable Cash Flow Available for Restricted Payments: An
amount equal to (i) the sum of (x) 100% of the aggregate Consolidated
Distributable Cash Flow for the Calculation Period plus (y) 100% of the
aggregate gains on the sale or disposition of properties of the Company and the
Consolidated Subsidiaries for the Calculation Period plus (z) 100% of the
aggregate extraordinary gains (as defined by GAAP) of the Company and the
Consolidated Subsidiaries for the Calculation Period (other than gains covered
by the immediately preceding CLAUSE (Y)), minus (ii) the aggregate amount of all
Restricted Payments made or declared after December 31, 1985."
(S)7. Section 15.1 of the Agreement is hereby amended by adding thereto the
following defined terms:
"Market Value: The value of the interest of the Company in any U.S.
Government Securities at any date that is the most probable price, as of that
date, in cash or in terms equivalent to cash, for which that interest should
sell after reasonable exposure in a competitive market under the conditions
required for a fair sale, with the buyer and seller each acting prudently,
knowledgeably and in their respective self interests, and assuming that neither
is under undue duress."
"Optional Prepayment Premium: The Optional Prepayment Premium, for any
prepayment of all or any portion of the aggregate principal amount of the
outstanding Notes, means the positive remainder (if any) obtained by
subtracting:
(a) the outstanding principal amount of the Notes to be prepaid on such
date, from
(b) the lowest of
(i) the sum of the present values, determined at the date fixed for such
prepayment, of (A) an amount equal to the outstanding principal amount of the
Notes to be prepaid on such date multiplied by 102% (assuming that the product
so obtained would have been due and payable on August 6, 1998), plus (B) all
unaccrued unpaid interest on such principal amount from the date of
determination of such Optional Prepayment Premium through and including August
6, 1998, computed at a discount rate equal to the
B-3
<PAGE>
sum of (x) the yield that would be imputed (by linear interpolation) from
the yields of United States Treasury Notes maturing as closely as practicable to
August 6, 1998, plus (y) 50 basis points,
(ii) the sum of the present values, determined at the date fixed for
such prepayment, of (A) an amount equal to the outstanding principal amount of
the Notes to be prepaid on such date multiplied by 101% (assuming that the
product so obtained would have been due and payable on August 6, 1999), plus (B)
all unaccrued unpaid interest on such principal amount from the date of
determination of such Optional Prepayment Premium through and including August
6, 1999, computed at a discount rate equal to the sum of (x) the yield that
would be imputed (by linear interpolation) from the yields of United States
Treasury Notes maturing as closely as practicable to August 6, 1999, plus (y) 50
basis points, and
(iii) the sum of the present values, determined at the date fixed for
such prepayment, of (A) the outstanding principal amount of the Notes to be
prepaid on such date (assuming that such principal amount would have been due
and payable on August 6, 2000), plus (B) all unaccrued unpaid interest on such
principal amount from the date of determination of such Optional Prepayment
Premium through and including August 6, 2000, computed at a discount rate equal
to the sum of (x) the yield that would be imputed (by linear interpolation) from
the yields of United States Treasury Notes maturing as closely as practicable to
August 6, 2000, plus (y) 50 basis points;
provided that for purposes of this definition, such present values shall be
computed to any date fixed for prepayment in accordance with generally accepted
financial practice based upon monthly compounding and such yields shall be
determined by reference to (a) the display designated as "Page 678" on the
Telerate Access Service (or such other display as may replace Page 678 on the
Telerate Access Service) for actively traded United States Treasury securities
adjusted to constant maturities, (b) if the Telerate Access Service shall have
ceased to exist or if yields are otherwise not available or ascertainable by
reference to such service, the statistical release designated "H.15(519)" or any
successor publication that is published weekly by the Federal Reserve System and
that establishes yields on actively traded U.S. Government Securities adjusted
to constant maturities, or (c) if the Telerate Access Service shall have ceased
to exist and such statistical release shall have ceased to be published, such
other reasonably comparable index that shall be designated by the holder or
B-4
<PAGE>
holders of a majority in aggregate principal amount of the then outstanding
Notes."
"U.S. Government Securities: Securities that are (i) direct obligations of
the United States of America for the payment of which its full faith and credit
is pledged; (ii) obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of the United States of America pursuant to
authority granted by the Congress of the United States of America the payment of
which is unconditionally guaranteed as a full faith and credit obligation by the
United States of America, which, in either case under clauses (i) or (ii) above,
are not callable or redeemable at the option of the issuer thereof; or (iii)
depository receipts issued by a bank or trust company as custodian with respect
to any such United States of America government obligations referred to in
clause (i) or (ii) of this definition or a specific payment of interest on or
principal of any such United States of America government obligation held by
such custodian for the account of the holder of a depository receipt; provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the United States of America
government obligation or the specific payment of interest on or principal of the
United States of America government obligation evidenced by such depository
receipt."
(S)8. By its execution and delivery of this Amendment, the Trust represents
and warrants that, as of the date hereof and after giving effect to the
amendments contemplated by the foregoing Sections 2 through 7, no event has
occurred and is continuing that constitutes an Event of Default or Potential
Event of Default.
(S)9. This Amendment shall become effective when, and only when, the Trust and
each of the Holders shall have executed a counterpart of this Amendment.
(S)10. Upon effectiveness of this Amendment, each reference in the Agreement,
to "this Agreement", "hereunder", "herein" or words of like import shall be a
reference to the Agreement, as amended by this Amendment.
(S)11. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same instrument.
(S)12. Except as expressly set forth herein, the terms and provisions of the
Agreement shall continue in full force and effect.
(S)13. This Amendment shall be construed and enforced in accordance with and
governed by the laws of the State of Texas.
B-5
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the
date first above written.
WEINGARTEN REALTY INVESTORS
By:
Name: Joseph W. Robertson, Jr.
Title: Executive Vice President
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE
COMPANY (As an Original Note-holder and as
the Successor in Interest to American General
Life Insurance Company of Delaware), and
AMERICAN GENERAL LIFE INSURANCE COMPANY (As
the Successor in Interest to each of Republic
National Life Insurance Company and American
-Amicable Life Insurance Company)
By
Name: Julia S. Tucker
Title: Investment Officer
B-6
<PAGE>
Exhibit C To Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
OFFICERS' CERTIFICATE TO ESTABLISH FUNDING DATES
This certificate is delivered pursuant to (S)3(a) of the Note Purchase
Agreement dated as of April 1, 1994 (the "Agreement"), between Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), and The Variable
Annuity Life Insurance Company and American General Life Insurance Company
(collectively, the "Purchasers").
The Trust hereby notifies each of the Purchasers that the Trust intends to
issue and sell $[aggregate principal amount determined pursuant to (S)3(a)(iv)
of the Agreement] aggregate principal amount of the Trust's Variable Issue
Senior Secured Notes, Series [series designated pursuant to (S)3(a)(v) of the
Agreement] (the "Series [designated series] Notes").
The date for the issue and sale of the Series [designated series] Notes is
[Funding Date determined pursuant to (S)3(a)(ii) of the Agreement].
The date upon which the aggregate unpaid principal amount of the outstanding
Series [designated series] Notes, and accrued and unpaid interest on such
aggregate unpaid principal amount, shall become due and payable unless such
aggregate unpaid principal amount shall earlier have become due and payable
pursuant to the Agreement is [Maturity Date determined pursuant to (S)3(a)(iii)
of the Agreement] .
Dated: [Date of delivery of such Officers' Certificate]
WEINGARTEN REALTY INVESTORS
By:
Name: Joseph W. Robertson, Jr.
Title: Executive Vice President
By:
Name: [Name of Officer]
Title: [Office of Officer]
C-1
<PAGE>
Exhibit D To Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
OFFICERS' CERTIFICATE AT THE CLOSING
This certificate is delivered pursuant to (S)4.3(a) of the Note Purchase
Agreement dated as of April 1, 1994 (the "Agreement"), between Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), and The Variable
Annuity Life Insurance Company and American General Life Insurance Company
(collectively, the "Purchasers"). The undersigned, Joseph W. Robertson, Jr., an
Executive Vice President of the Trust, and Stephen C. Richter, a Vice President
and the Treasurer of the Trust, hereby certify on behalf of the Trust to each of
the Purchasers as follows:
1. The representations and warranties of the Trust contained in the Agreement
are true and correct at the Closing with the same effect as though made at
the Closing.
2. The Trust has performed and complied with all agreements and conditions
contained in the Agreement that are required to be performed or complied
with by the Trust before or at the Closing.
3. At the Closing, no Event of Default or Potential Event of Default exists.
Capitalized terms used herein, and not otherwise defined, have the same
meanings as set forth in the Agreement.
Dated: [Closing Date]
WEINGARTEN REALITY INVESTORS
By:__________________________________
Name: Joseph W. Robertson, Jr.
Title: Executive Vice President
By:__________________________________
Name: Stephen C. Richter
Title: Vice President and Treasurer
D-1
<PAGE>
Exhibit E To Note
Purchase Agreement
WEINGARTEN REALITY INVESTORS
CERTIFICATE OF THE SECRETARY OF THE TRUST AT THE CLOSING
This certificate is delivered pursuant to (S)4.3(b) of the Note Purchase
Agreement dated as of April 1, 1994 (the "Agreement"), between Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), and The Variable
Annuity Life Insurance Company and American General Life Insurance Company
(collectively, the "Purchasers"). The undersigned, M. Candace DuFour, the
Secretary of the Trust, hereby certifies to each of the Purchasers as follows:
1. Joseph W. Robertson, Jr. is a duly elected, qualified and acting
Executive Vice President of the Trust, and each of the signatures
appearing above his name on the Agreement delivered today to each of the
Purchasers, on the Mortgage delivered pursuant to (S)4.10 of the
Agreement, and on the Amendment delivered pursuant to (S)2(b) of the
Agreement is his genuine signature.
2. Attachment A hereto is a true and correct copy of resolutions adopted by
the Board of Trust Managers of the Trust on [date of such adoption] and
authorizing the actions specified in (S)4.3(b)(ii) of the Agreement. Such
resolutions have not been amended or rescinded and are in full force and
effect at the date hereof.
Capitalized terms used herein, and not otherwise defined, have the same
meanings as set forth in the Agreement.
Dated: [Closing Date]
____________________________________
M. Candace DuFour, Secretary
E-1
<PAGE>
Attachment A to Certificate of the
Secretary of the Trust at the Closing
WHEREAS, the Board of Trust Managers (the "Board") of the Trust has determined
that it is in the best interest of the Trust to enter into a Note Purchase
Agreement with The Variable Annuity Life Insurance Company and American General
Life Insurance Company, pursuant to which the Trust may issue its variable issue
senior secured notes; and
WHEREAS, in order to effect the issuance of such notes, the Trust must execute
and deliver certain documents and instruments;
NOW, THEREFORE, BE IT RESOLVED, that the form, terms and provisions of each of
(i) the proposed Note Purchase Agreement dated as of April 1, 1994 (the
"Note Purchase Agreement"), between the Trust and The Variable Annuity
Life Insurance Company and American General Life Insurance Company
(collectively, the "Purchasers"),
(ii) the proposed Amendment No. 2 to Note Purchase Agreement (the
"Amendment"), between the Trust, the Purchasers and American General
Life and Accident Insurance Company, and
(iii) the proposed Deed of Trust, Assignment of Rents, Security Agreement
and Financing Statement (the "Mortgage"), from the Trust to John
Madsen, as trustee,
are hereby approved; and
FURTHER RESOLVED, that Joseph W. Robertson, Jr., an Executive Vice President
of the Trust, is hereby authorized to execute and deliver on behalf of the Trust
each of the Note Purchase Agreement, the Amendment and the Mortgage, in each
case with such changes therein as he shall approve, his execution of such
document to be conclusive evidence of such approval; and
FURTHER RESOLVED, that the Trust hereby authorizes the issue and sale pursuant
to the Note Purchase Agreement of not more than $30,000,000 aggregate principal
amount of the Trust's Variable Issue Senior Secured Notes (the "Notes"), which
shall be issuable in no more than six series; and
FURTHER RESOLVED, that the form, terms and provisions of the form of the
Trust's Variable Issue Senior Secured Note is hereby approved; and
FURTHER RESOLVED, that each of the officers of the Trust is hereby authorized
to take any other action, either individually or on behalf of the Trust, that
E-2
<PAGE>
may be required to cause the Trust to fulfill each of the conditions contained
in (S)($)4 and 5 of the Note Purchase Agreement; and
FURTHER RESOLVED, that Joseph W. Robertson, Jr., an Executive Vice President
of the Trust, is hereby authorized to (i) determine on behalf of the Trust the
Funding Date (as that term is defined in the Note Purchase Agreement) for the
Notes of each series, the Maturity Date (as that term is defined in the Note
Purchase Agreement) for the Notes of each series, and the aggregate principal
amount of the Notes of each series and (ii) execute and deliver on behalf of the
Trust (x) each Note that the Trust becomes obligated to issue and sell pursuant
to the Note Purchase Agreement and (y) each document that the Trust is required
by the Note Purchase Agreement to execute and deliver as a condition to the
respective obligations of the Purchasers to purchase Notes of that series; and
FURTHER RESOLVED, that each of Joseph W. Robertson, Jr., an Executive Vice
President of the Trust, and any other officer of the Trust who is permitted by
the terms of the Note Purchase Agreement to execute an Officers' Certificate (as
that term is defined in the Note Purchase Agreement) on behalf of the Trust, is
hereby authorized to execute and deliver on behalf of the Trust, pursuant to
(S)3(a) of the Note Purchase Agreement, an Officers' Certificate meeting
requirements of that section to notify each Purchaser of the intention of the
Trust to issue and sell Notes of each series for which the Funding Date, the
Maturity Date, and the aggregate principal amount have been so determined
pursuant to the foregoing resolution; and
FURTHER RESOLVED, that each of the officers of the Trust is authorized to take
any and all such other actions, execute and deliver any and all such
instruments, documents and papers and exercise any and all powers on behalf of
the Trust as such officer may determine to be advisable and in the best interest
of the Trust and to effectuate the purposes and intent of the foregoing
resolutions, such determination to be conclusively evidenced by the taking of
such actions, execution of such instruments, documents or papers or the exercise
of such powers.
E-3
<PAGE>
Exhibit F To Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
CERTIFICATE OF THE SECRETARY
OF THE TRUST AS TO CERTAIN INSTRUMENTS
This certificate is delivered pursuant to [(S)4.3(c), if delivered at the
Closing Date, or (S)5.3(c), if delivered at any Funding Date] of the Note
Purchase Agreement dated as of April 1, 1994 (the "Agreement"), between
Weingarten Realty Investors, a Texas real estate investment trust (the "Trust"),
and The Variable Annuity Life Insurance Company and American General Life
Insurance Company (collectively, the "Purchasers"). The undersigned, M. Candace
DuFour, the Secretary of the Trust, hereby certifies to each of the Purchasers
as follows:
1. Attachment A hereto is a true and complete copy of the Trust's Restated
Declaration of Trust, certified by the County Clerk of Harris County,
Texas, as in effect on the date hereof.
2. Attachment B hereto is a true and complete copy of the bylaws of the
Trust as in effect at that date.
Dated: [Date Determined by (S)4.3(c) or (S)5.3(c)]
____________________________________
M. Candace DuFour, Secretary
F-1
<PAGE>
Attachment A to Certificate of the Secretary
of the Trust as to Certain Instruments
[Copy of the Trust's Restated Declaration of Trust]
F-2
<PAGE>
Attachment B to Certificate of the Secretary
of the Trust as to Certain Instruments
[Copy of the Trust's bylaws]
F-3
<PAGE>
Exhibit G To Note
Purchase Agreement
DEED OF TRUST, ASSIGNMENT OF RENTS,
SECURITY AGREEMENT AND FINANCING STATEMENT
STATE OF TEXAS (S)
(S)
COUNTIES OF FORT BEND (S)
AND HARRIS (S)
This Deed of Trust, Assignment of Rents, Security Agreement and Financing
Statement (this "Mortgage") made as of [Closing Date] (the "Effective Date"), by
Weingarten Realty Investors, a Texas real estate investment trust whose mailing
address is 2600 Citadel Plaza Drive, Houston, Texas 77008 (hereinafter called
"Grantor"), to John Madsen, as trustee, whose mailing address is c/o American
General Corporation, 2929 Allen Parkway, Houston, Texas 77019, and to any
substitute or successor trustee as hereinafter provided (all of whom shall be
included within the term "Trustee"), for the use and benefit of The Variable
Annuity Life Insurance Company and American General Life Insurance Company, each
of whose mailing address is c/o American General Corporation, 2929 Allen
Parkway, Houston, Texas 77019, as holders from time to time of the Notes (as
that term is hereinafter defined), and, after any transfer of one or more of the
Notes pursuant to (S)11 of the Note Purchase Agreement (as that term is
hereinafter defined), the subsequent holder or holders from time to time of the
Notes (all of whom shall be included within the term "Beneficiaries"), as
beneficiaries, assignees, and Secured Party (as that term is hereinafter
defined), as more fully hereinafter set forth.
W I T N E S S E T H:
ARTICLE I
OBLIGATIONS
(S)1.1 This Mortgage is executed and delivered by Grantor to secure the
payment of:
(a) all amounts due and payable, or to become due and payable, pursuant
to Grantor's Variable Issue Senior Secured Notes (the "Notes") in the
aggregate original principal amount of not more than $30,000,000, issued and
sold, or to be issued and sold, in not more than six series pursuant to the
Note Purchase Agreement dated as of April 1, 1994 (together with any
amendments thereto, the "Note Purchase Agreement"), between Grantor and The
Variable Annuity Life Insurance Company and American General Life Insurance
Company, each Note being payable to one of the Beneficiaries as provided
therein and in the Note Purchase
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Agreement and finally maturing no later than its Maturity Date (as that term
is defined in the Note Purchase Agreement), which Maturity Date shall be no
later than February 27, 2015;
(b) all other amounts due and payable, or to become due and payable, by
Grantor to any Beneficiary pursuant to this Mortgage or the Note Purchase
Agreement;
(c) all amounts due and payable, or to become due and payable, by any
Guaranteeing Subsidiary (as that term is defined in the Note Purchase
Agreement) to any Benef1ciary pursuant to any of the Guaranty Agreements (as
that term is defined in the Note Purchase Agreement); and
(d) all amounts due and payable, or to become due and payable, as a
result of any renewal, supplement, amendment, rearrangement, modif1cation or
extension of any of the items of indebtedness described in this 1.1.
(S)1.2 Subject to the provisions of (S)5.6 of this Mortgage, the payment of
the items of indebtedness described in (S)1.1 above is equally and ratably
secured by the lien, security interest and assignment of rents created by this
Mortgage, without preference or priority of any Note of any series over any
other Note of the same or any other series; and the amounts listed in (S)1.1 are
hereinafter collectively called the "Obligations."
ARTICLE II
GRANT OF MORTGAGED PROPERTIES
(S)2.1 For the purposes and trusts hereinafter set forth, and for $10.00 and
other valuable consideration paid to Grantor, the receipt and sufficiency of
which are hereby acknowledged, Grantor has GRANTED, BARGAINED, SOLD, CONVEYED,
CONFIRMED, WARRANTED, ASSIGNED AND TRANSFERRED, and by these presents does
irrevocably GRANT, SELL, BARGAIN, CONVEY, CONFIRM, WARRANT, ASSIGN and TRANSFER,
unto the Trustee, with power of sale, all the following described property, to
wit:
(a) all those certain tracts of land, each of which is situated in
either Fort Bend County or Harris County, Texas, being more fully described on
Attachment A hereto, which is incorporated herein for all purposes;
(b) any and all buildings, open parking areas and other improvements,
and any and all additions, alterations, or appurtenances thereto, now or at
any time hereafter situated, placed or constructed upon such tracts of land or
any part thereof (collectively, the "Buildings");
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(c) all of the Grantor's right, title and interest in and to all
materials, supplies, equipment, fixtures, apparatus and other items now or
hereafter attached to, installed in or located in or on (temporarily or
permanently) any portion of such tracts of land or any portion of the
Buildings, including but not limited to, any and all partitions, window
screens and shades, drapes, rugs and other floor coverings, awnings, motors,
engines, boilers, furnaces, pipes, plumbing, cleaning, call and sprinkler
systems, fire extinguishing apparatus and equipment, water tanks, swimming
pools, heating, ventilating, plumbing, laundry, incinerating, air conditioning
and air cooling equipment and systems, gas and electric machinery,
appurtenances and equipment, disposals, dishwashers, refrigerators and ranges,
and recreational equipment and facilities of all kinds (collectively, the
"Fixtures");
(d) all of Grantor's right, title and interest in and to all tenements,
rights, easements, hereditaments, rights of way, privileges, liberties,
appendages and appurtenances belonging or in anywise appertaining to such
tracts of land, the Buildings or the Fixtures, or any part thereof, including
without limitation (i) the access and other rights set forth in instrument
recorded in Volume 2092, Page 2019, (ii) the access and other rights set forth
in instruments recorded in Volume 1448, Page 441, as amended in Volume 1920,
Page 260, Volume 2092, Page 2097 and Fort Bend County Clerk's File No.
9355330, (iii) the access and other rights set forth in instrument recorded
under Fort Bend County Clerk's File No. 9355329 and (iv) the access and other
rights set forth in instrument recorded under Fort Bend County Clerk's File
No. 9355328, all as recorded in the Official Records of Fort Bend County,
Texas; all of Grantor's right, title and interest in and to all water, gas,
oil, minerals, coal and other substances of any kind or character underlying
or relating to such tracts of land or any part thereof; all of Grantor's
right, title and interest in and to any street, road, highway, or alley
(vacated or otherwise) adjoining such tracts of land or any part thereof; all
of Grantor's right, title and interest in and to all strips and gores
belonging, adjacent or pertaining to such tracts of land or any part thereof;
and any after-acquired title of Grantor to any of the foregoing (collectively,
the "Appurtenances");
(e) subject to the rights of Beneficiaries under Article III below, all
existing and future leases, subleases in which Grantor has an interest,
licenses and other agreements for the use or occupancy of such tracts of land,
the Buildings, the Fixtures or the Appurtenances, or any part thereof,
together with all guarantees of any obligation of a lessee thereunder and
together with all extensions, modifications and renewals thereof, including
without limitation the leases described on Attachment B hereto, which is
incorporated herein for all purposes (collectively, the "Leases");
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(f) subject to the rights of Beneficiaries under Article III below, all
income, receipts, security deposits, revenues, rents, issues and profits
arising from and out of the Leases, including without limitation store rents,
minimum rents, additional rents, percentage rents, parking and maintenance
charges and fees, tax and insurance contributions, proceeds from the sale of
utilities and services, cancellation premiums, and claims for damages arising
from any breach of such Leases (collectively, the "Rents");
(g) all of Grantor's right, title and interest in and to all contracts,
documents, instruments, general intangibles, chattel paper, and accounts
(including, without limitation, all service contracts and management
contracts), whether now or hereafter existing, arising out of or relating to
the sale, leasing, operation, ownership or management of such tracts of land,
the Buildings, the Fixtures or the Appurtenances, or any part thereof;
(h) all of Grantor's right, title and interest in and to all equipment,
machinery, goods, general intangibles, money, accounts, contract rights,
inventory and all other personal property (other than the Fixtures) of any
kind or character now or hereafter located upon, within or about such tracts
of land, the Buildings or the Fixtures, or any part thereof, together with all
accessories, replacements and substitutions thereto or therefor and the
proceeds thereof;
(i) all of Grantor's right, title and interest in and to any existing
or future award, awards, remuneration, settlements or compensation relating to
such tracts of land, the Buildings or the Fixtures, or any part thereof, that
are made or paid by any governmental authority, including without limitation
those made for vacation of, or change of grade in, any streets affecting such
tracts of land, the Buildings or the Fixtures, or any part thereof;
(j) all of Grantor's right, title and interest in and to any existing
or future licenses, permits, warranties, and wastewater discharge capacity
attributable or allocable to such tracts of land, the Buildings or the
Fixtures, or any part thereof; and
(k) each and every right, privilege, hereditament, and appurtenance in
anywise incident or appertaining to the properties, both real and personal,
described above in this (S)2.1.
TO HAVE AND TO HOLD the hereinabove described properties, together with the
rights, privileges, and appurtenances thereto belonging (all of which
properties, rights, privileges and appurtenances are hereinafter collectively
called the "Mortgaged Properties"), unto the said Trustee and to his substitutes
or successors forever, and Grantor does hereby bind itself, its successors,
assigns, and legal representatives to warrant and forever defend all and
singular the Mortgaged Properties unto the Trustee,
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his successors and assigns, against every person whomsoever lawfully claiming or
to claim the same, or any part thereof, subject only to the matters (the
"Approved Encumbrances") set forth on Attachment C hereto, which is incorporated
herein for all purposes.
(S)2.2 This conveyance, however, is intended as a deed of trust and security
agreement and is made upon the following trusts, terms, and conditions, to wit:
In the event Grantor shall well and truly perform and pay the Obligations to the
legal holder thereof when the same shall become due, then this Mortgage and all
herein contained shall be null and void and Beneficiaries shall cause this
Mortgage to be released at Grantor's cost and expense, otherwise this Mortgage
shall continue in full force and effect; provided, however, that Grantor's
obligation to indemnify and hold harmless Beneficiaries and Trustee pursuant to
the provisions hereof with respect to matters relating to any period of time
during which this Mortgage in effect shall survive any such payment or release.
ARTICLE III
ASSIGNMENT OF RENTS
(S)3.1 To facilitate payment of the Obligations, Grantor hereby absolutely
transfers and assigns to Beneficiaries all right, title and interest of Grantor
in and to the Leases and the Rents, together with the immediate and continuing
right to receive all of the Rents. So long as no Event of Default (as that term
is defined in the Note Purchase Agreement) exists, but not otherwise, Grantor
may collect and retain the currently accruing Rents, but may not collect in
excess of one (1) month's rental in advance or two (2) months' rental in advance
where one such month's rental is attributable to the next ensuing month and one
such month's rental is attributable to the last month in the lease term and is
collected as security under the provisions of a written lease or rental
agreement. In the event, however, any Event of Default shall occur and be
continuing, thereupon or any time thereafter, while such or any subsequent Event
of Default continues, Beneficiaries may, personally or through an agent selected
by such holder, take, or have the Trustee take, possession and control of the
Mortgaged Properties, or any part thereof, and receive and collect all Rents,
theretofore accrued or thereafter accruing therefrom so long as any of the
Obligations remain outstanding or until the foreclosure of the lien hereof,
applying so much thereof as may be collected prior to the sale of such property
under foreclosure, first to the expenses incident to such possession, control,
and collection and second to the payment of the Obligations in the order set
forth in (S)5.6 below.
(S)3.2 In exercise of the rights and powers created under (S)3.1 above,
Grantor specifically agrees that Beneficiaries, Beneficiaries' agent, or the
Trustee, as such party may see fit, may: use against Grantor or any other
Persons (as that term is defined in the Note Purchase Agreement) lawful or
peaceable means to enforce the collection of any such Rents and to secure
possession of the Mortgaged Properties, or any part thereof; settle or
compromise on any terms the liability of any Person or Persons for any such
Rents; institute and prosecute to final conclusion actions of forcible entry and
detainer, or actions of trespass to try title, or actions for damages, or any
other appropriate actions, in the name of such Person or in the name of Grantor;
and settle,
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compromise, or abandon any such actions. In furtherance of the foregoing and not
by way of limitation, Grantor binds itself to take whatever lawful or peaceful
steps Beneficiaries may ask it to take for such purposes, including the
institution and prosecution of actions of the character above stated; provided,
however, Grantor recognizes that neither the Trustee, Beneficiaries, or any
Person acting on behalf of Beneficiaries shall ever be required to collect any
such Rents or be liable or chargeable for failure so to do.
(S)3.3 Beneficiaries shall not be obligated to perform or discharge, nor do
Beneficiaries hereby undertake to perform or discharge, any obligation, duty or
liability under the Leases, or under or by reason of this assignment, and
Grantor shall and does hereby agree to indemnify Beneficiaries against and hold
Beneficiaries harmless from any and all liability, loss or damage which it may
or might incur under the Leases or any of them or under or by reason of this
assignment and of and from any and all claims and demands whatsoever which may
be asserted against it by reason of any alleged obligation or undertaking on its
part to perform or discharge any of the terms, covenants or agreements contained
in any or all of the Leases.
ARTICLE IV
SECURITY AGREEMENT
(S)4.1 Without limiting any of the other provisions of this Mortgage, Grantor,
as Debtor (referred to in this Article IV as "Debtor"), expressly GRANTS unto
Beneficiaries, as Secured Party (referred to in this Article IV as "Secured
Party," whether one or more), a security interest in all the Mortgaged
Properties (including both those now and those hereafter existing) to the full
extent that the Mortgaged Properties may be subject, to the extent necessary or
applicable, to the Uniform Commercial Code--Secured Transactions as adopted in
the State of Texas (Chapter 9, Business And Commerce Code of Texas, as amended)
(hereinafter called the "Uniform Commercial Code").
(S)4.2 Debtor covenants and agrees with Secured Party that:
(a) In addition to any other remedies granted in this Mortgage to
Secured Party or the Trustee (including specifically, but not limited to, the
right to proceed against all the Mortgaged Properties in accordance with the
rights and remedies in respect of that Mortgaged Properties which is real
property pursuant to the Uniform Commercial Code), Secured Party may, should an
Event of Default occur and be continuing, proceed under the Uniform Commercial
Code as to all or any part of the personal property (tangible or intangible) and
fixtures included in the Mortgaged Properties now or hereafter acquired
including, without limitation, all equipment, machinery, fixtures and other
personal property of every nature whatsoever located in, or on, or attached or
appurtenant to, and used or intended to be used in connection with, the
operation, occupancy, development or improvement of the Mortgaged Properties,
and all buildings, structures, and other improvements thereon, including without
limitation machine tools, motors, controls, attachments, heating, air
conditioning, refrigeration, ventilation, incineration, embalming or utility
systems, parts, tools, furniture, furnishings, shelves, racks, displays,
appliances, drapes, and floor
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coverings, whether now owned or in existence or hereafter arising or acquired;
all policies and certificates of insurance, insurance proceeds, condemnation
proceeds or awards, licenses and permits, whether now owned or in existence or
hereafter arising or acquired, arising from, used or held in connection with, or
otherwise relating to the Mortgaged Properties; and all attachments,
accessories, accessions, replacements, substitutions, additions, improvements,
proceeds, and products of any and all of the foregoing (such portion of the
Mortgaged Properties being referred to in this Article IV as the "Collateral"),
and shall have and may exercise with respect to the Collateral all the rights,
remedies, and powers of a secured party under the Uniform Commercial Code,
including, without limitation, the right and power to sell, at one or more
public or private sales, or otherwise dispose of, lease, or utilize the
Collateral and any part or parts thereof in any manner authorized or permitted
under the Uniform Commercial Code after default by a debtor, and to apply the
proceeds thereof toward payment of any costs and expenses and reasonable
attorneys' fees and legal expenses thereby incurred (whether or not suit is
brought or foreclosure is commenced) by Secured Party, and toward payment of
the Obligations in the order set forth in (S)5.6 below.
(b) Among the rights of Secured Party upon occurrence and continuation
of an Event of Default and without limitation, Secured Party shall have the
right, by any lawful means, to take possession of the Collateral or any part
thereof and to enter, in any lawful manner, upon any premises where same may be
situated for such purpose without being deemed guilty of trespass and without
liability for damages thereby occasioned, and to take any lawful action deemed
necessary or appropriate or desirable by Secured Party, at its option and in its
discretion, to repair, refurbish, or otherwise prepare the Collateral for sale,
lease, or other use or disposition as herein authorized.
(c) To the extent permitted by law, Debtor expressly waives any notice
of sale or other disposition of the Collateral and any other rights or remedies
of a debtor or formalities prescribed by law relative to sale or disposition of
the Collateral or exercise of any other right or remedy of Secured Party
existing after default hereunder; and, to the extent any such notice is required
and cannot be waived, Debtor agrees that, if such notice is mailed, postage
prepaid, to Debtor at the address set forth on the f1rst page of this Mortgage
at least ten (10) days before the time of the sale or disposition, such notice
shall be deemed reasonable and shall fully satisfy any requirement for giving of
said notice.
(d) Upon occurrence and during the continuation of an Event of Default,
Secured Party is hereby granted the express right, at its option, to transfer to
itself or to its nominee the Collateral, or any part thereof, to notify any
obligor or account debtor in the case of any Collateral to make payment directly
to Secured Party, and to receive the moneys, income, proceeds or benefits
attributable or accruing thereto and to hold the same as security for the
Obligations or to apply the same to amounts owing on the Obligations in the
order set forth in (S)5.6 below. With respect to the Collateral, Debtor, for
itself, its successors and assigns, hereby expressly and specifically waive all
rights to a marshalling of the assets of Debtor, including the Collateral, or to
a sale in inverse order of alienation.
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(e) All recitals in any instrument of assignment or any other instrument
executed by Secured Party or by the Trustee incident to sale, transfer,
assignment, lease, or other disposition or utilization of the Collateral or any
part thereof hereunder shall be full proof of the matters stated therein, no
other proof shall be requisite to establish full legal propriety of the sale or
other action or of any fact, condition or thing incident thereto, and all
prerequisites of such sale or other action and of any fact, condition or thing
incident thereto shall be presumed conclusively to have been performed or to
have occurred.
(f) Secured Party may require Debtor to assemble the Collateral and make
it available to Secured Party at a place to be designated by Secured Party that
is reasonably convenient to both parties. Debtor shall be fully liable for all
expenses of retaking, holding, preparing for sale, lease or other use or
disposition, selling, leasing or otherwise using or disposing of the Collateral
which are incurred or paid by Secured Party as authorized or permitted
hereunder, including also all reasonable attorneys' fees, legal expenses, and
costs (whether or not suit is brought or foreclosure is commenced), the amount
of all of which expenses and costs shall constitute a part of the Obligations.
(g) Certain of the Collateral is or will become "fixtures" (as that
term is def1ned in the Uniform Commercial Code) on the real estate hereinabove
described and this Mortgage upon being filed for record in the real estate
records shall operate also as a f1nancing statement upon such of the Collateral
which is or may become fixtures. Debtor has an interest of record in the real
estate.
(h) Any copy of this Mortgage which is signed by Debtor or any carbon,
photographic, or other reproduction of this Mortgage may also serve as a
financing statement under the Uniform Commercial Code by Debtor, whose address
is set forth on the first page of this Mortgage, in favor of Secured Party,
whose address is also set out hereinabove.
ARTICLE V
CERTAIN REMEDIES; POWER OF SALE
(S)5.1 Upon the occurrence and during the continuation of an Event of Default,
the Majority Holders shall be entitled to have a court immediately appoint a
receiver for all or any portion of the premises constituting the Mortgaged
Properties (the "Premises"), and Grantor hereby expressly consents to the
appointment of such a receiver. Any such appointment may be made either before
or after sale, with such notice, if any, as may be required by court rule or
proceeding, and without regard to the solvency or insolvency at the time of
application for such receiver of the person or persons, if any, liable for the
payment of the Obligations secured hereby, and without regard to the then value
of the Premises, and without bond being required of the applicant. Such receiver
shall have the power to take possession, control, and care of all or any portion
of the Premises and to collect the rents and profits of the Premises and, in
case of a sale and a deficiency, during the full statutory period of redemption,
as well as during any further times when Grantor, its successors or assigns,
except for the intervention of such receiver, would be entitled to collect such
rents, issues, and
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profits, and all other powers which may be necessary or are useful in such cases
for the protection, possession, control, management, and operation of the
Premises during the whole of said period. To the extent permitted by law, the
receiver may be authorized by the court to extend or modify any then existing
leases and to make new leases, which extensions, modifications, and new leases
may provide for terms to expire, or for options to lessees to extend or renew
terms to expire, beyond the maturity date of the indebtedness secured hereunder.
It is understood and agreed that any such leases and the options or other such
provisions authorized by such receiver shall be binding upon Grantor and upon
all persons whose interests in the Premises are subject to the lien hereof, and
upon the purchaser or purchasers from sale, discharge of the indebtedness
secured hereby, satisfaction of any foreclosure decree, or issuance of any
certificate of sale or deed to any purchaser.
(S)5.2 If an Event of Default arises out of Grantor's failure to pay any taxes
or assessments upon the Mortgaged Properties before the same become delinquent,
or Grantor's failure to procure or maintain such insurance with respect to the
Mortgaged Properties as is required by the Note Purchase Agreement, or Grantor's
failure to perform any other covenant of Grantor set forth in (S)10 of the Note
Purchase Agreement, then any Beneficiary, at its option and without any
obligation to do so, may pay any such taxes or assessments (without being
required to examine the legality of the same), procure such insurance, or tender
such performance. All amounts advanced by Beneficiaries pursuant to this (S)5.2
shall be due and payable on demand, shall become a part of the Obligations,
shall bear interest from the date such payments are advanced until the repayment
thereof at a rate of 10% per annum and shall be fully secured by the lien,
security interest and assignment of rents created by this Mortgage. Grantor
agrees that the payment of such taxes or assessments, or the procuring and
maintaining of such insurance, or the tendering of such performance by
Beneficiaries shall not prevent Beneficiaries from declaring the Obligations to
be due and payable by reason of the occurrence and continuation of such Event of
Default or pursuing any other remedies available to Beneficiaries.
(S)5.3 Upon the occurrence and during the continuation of an Event of Default,
it shall thereupon be the duty of the Trustee, or its successors, as hereinafter
provided, at the request of the Majority Holders (as defined in the Note
Purchase Agreement), to enforce this trust and to sell the Mortgaged Properties,
as an entirety or in parcels, by one sale or by several sales, held at one time
or at different times, all as the Trustee acting may elect, each sale to be held
at the location within the county courthouse designated for the holding of
nonjudicial foreclosure sales by the Commissioners Court of any county in which
a part of the real property to be sold is situated (or if no area has been so
designated, then in an area within said courthouse described in the notice
referred to in (S)5.4 and to be made on the first Tuesday of some month between
the hours of 10 o'clock a.m. and 4 o'clock p.m. to the highest bidder for cash
at public vendue, after the Trustee (or a Person or Persons selected by the
Trustee) and Beneficiaries shall have given notices of the proposed sale in the
manner hereinafter set forth, and to make due conveyance to the purchaser or
purchasers, with special warranty of title to such purchaser or purchasers
binding upon Grantor and its successors and assigns. Such sale must begin at the
time stated in the notice referred to in (S)5.4 or not later than three hours
after that time. Grantor, for itself, its
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successors and assigns, hereby expressly and specifically waives all rights to
a marshalling of the assets of Grantor, including the Mortgaged Properties, or
to a sale in inverse order of alienation.
(S)5.4 The Trustee (or a Person or Persons selected by the Trustee) shall give
notice of each such proposed sale by posting written notice of the time, place,
and terms of sale at the courthouse door, and by filing a copy of such written
notice in the office of the county clerk, of the county in which the sale is to
be made for at least twenty-one (21) consecutive days preceding the date of the
sale. Where real properties to be sold are situated in more than one county, one
notice shall be posted at the courthouse door, and a copy of such notice shall
be filed with the county clerk, of each county in which a part of the real
properties to be sold is situated, and such notices shall designate the county
where such real properties will be sold, which may be any county in which a part
of said real properties is situated. In addition to the foregoing notice or
notices to be posted and filed by the Trustee (or a Person or Persons selected
by the Trustee), Beneficiaries shall, at least twenty-one (21) days preceding
the date of sale, serve or cause to be served written notice of the proposed
sale by certified mail on each debtor obligated to pay such indebtedness
according to the records of Beneficiaries. The service of such notice shall be
completed upon deposit of the notice, enclosed in a postpaid wrapper, properly
addressed to each such debtor at the most recent address (which shall be within
the United States of America) as shown by the records of Beneficiaries, in a
post office or official depository under the care and custody of the United
States Postal Service. The affidavit of any person having knowledge of the facts
to the effect that such notice was given shall be prima facie thereof. In this
respect and to the full extent it may legally do so, Grantor also expressly
covenants, stipulates, and agrees that: (i) the address of Grantor set out on
the first page of this Mortgage shall be deemed and considered conclusively to
be and remain at all times the most recent address of all debtors obligated to
pay such indebtedness as shown by the records of Beneficiaries, provided such
address may be changed to some other address within the United States of America
from time to time only by express written notice of change thereof signed by all
debtors obligated to pay such indebtedness sent by certified U.S. mail and
actually delivered to and received by Beneficiaries and setting forth a new
address which shall be within the United States of America and which shall be
deemed and considered conclusively to be and remain at all times thereafter the
most recent address of all debtors obligated to pay such indebtedness as shown
by the records of Beneficiaries until changed in the manner herein provided,
(ii) the records of Beneficiaries shall not be deemed to reflect any change in
the name or identity of the debtors obligated to pay the indebtedness (to whom
notice of a proposed sale shall be required to be mailed as provided for above)
unless and until express written notice of such change signed by all debtors
obligated to pay such indebtedness shall have been actually delivered to and
received by Beneficiaries, and (iii) no notice of sale or sales of the Mortgaged
Properties other than the notices hereinabove provided shall be required to be
given to Grantor or any other persons and any other notice is expressly waived.
(S)5.5 The provisions of (S)5.4 with respect to posting, serving, filing, and
giving notices of sale are intended to comply with the provisions of section
51.002 of the Property Code of the State of Texas (in this (S)5.5 such section
51.002 being called the
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"Subject Statute"). In the event the requirement for any notice, or the posting,
serving, filing, or giving thereof, under the Subject Statute shall be
eliminated or the prescribed manner of posting, serving, filing, or giving same
is modified by future amendment to the Subject Statute, the requirement for such
particular notice shall be stricken from, or the manner of posting, serving,
filing, or giving any notice hereunder modified in, this Mortgage in conformity
with such amendment. The manner herein prescribed for posting, serving, filing,
or giving any notice, other than that to be posted and filed or caused to be
posted and filed by the Trustee, shall not be deemed exclusive but such notice
or notices may be posted, served, filed, or given in any other manner which may
be permitted by applicable law. Further, in relation to this Mortgage and the
exercise of any power of sale by the Trustee hereunder, if the Subject Statute
shall be amended or modified to require any other notice or the posting, filing,
serving, or giving thereof or if any other law shall require any other notice or
the posting, filing, serving, or giving thereof, the Trustee or the Person
selected by him is hereby authorized and empowered by Grantor to give such
notice or make such posting, filing, serving, or giving thereof, provided that
Grantor waives such other notice or the posting, filing, serving, or giving
thereof to the full extent Grantor may lawfully so do.
(S)5.6 At any sale conducted under this Mortgage, credit upon all or any part
of the Obligations shall be deemed cash paid for the purpose of (S)5.3; and any
Beneficiary may purchase at any such sale. The proceeds arising from such sale
or sales, whether under the provisions of this Article 5 or otherwise, shall be
applied to the extent not prohibited by applicable law: first, to the payment of
the costs and expenses of such sale, including reasonable commissions or
compensation to the Trustee, its agents and counsel, and of any judicial
proceedings wherein the same may be made; second, to the payment of the whole
amount then owing on the Notes for accrued and unpaid interest; third, to the
payment of the whole amount then owing on the Notes for the Note Default
Premium; fourth, to the payment of the whole amount then owing on the Notes for
principal; fifth, to the payment of any other Obligations; sixth, to the extent
known by Beneficiaries, to the payment of any obligation (other than the
Obligations) the payment of which is secured by any lien on or security interest
in any of the Mortgaged Properties sold at such sale; and seventh, to the
payment of the surplus, if any, to Grantor.
(S)5.7 Without limiting any of the powers or remedies provided elsewhere,
Grantor agrees that, in the event the Obligations include, at any time, amounts
which are then due and payable as well as amounts which are not yet then due and
payable, the Beneficiaries shall have the right to have the Mortgaged Properties
sold, subject to the lien, security interest and assignment of rents created by
this Mortgage securing the part of the Obligations which is not due and payable
at the time the Trustee is requested to make such sale, at Trustee's sale to
satisfy the lien and security interest hereof securing the portion of the
Obligations which is then due and payable and the Trustee is expressly
authorized and empowered to conduct such sale which is called in this (S)5.7
"Installment Foreclosure." Any Installment Foreclosure made under this (S)5.7
shall not affect the lien, security interest and assignment of rents created by
this Mortgage existing to secure that portion of the Obligations to which the
sale is to be made subject. No Installment Foreclosure shall exhaust the power
of the Trustee to conduct future Installment Foreclosures nor in anywise limit
the powers of sale
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provided elsewhere in this Mortgage. The provisions elsewhere in this Mortgage
relating to manner of conducting Trustee's sales, including the posting, filing,
and giving of notices thereof, shall also apply to any Installment Foreclosure
and the same presumptions shall be applicable to any Trustee's deed or recital
therein contained in connection with an Installment Foreclosure and to any other
affidavit as hereinabove provided.
(S)5.8 In the case of the absence of the Trustee from the state, or of its
refusal or failure to act, or in the event the Majority Holders should elect at
any time (with or without cause) to remove the Trustee then acting, a successor
or substitute (the "Successor" or "Successor Trustee") may be named,
constituted, and appointed by the Majority Holders, without further formality
than an appointment and designation in writing, which appointment and
designation shall be full evidence of the right and authority to make the same
and of all facts therein recited; and this conveyance shall vest in the
Successor or Substitute Trustee the title, powers, and duties conferred on the
Trustee named herein and the conveyance by the Successor or Substitute Trustee
to the purchaser at any sale made pursuant hereto shall be valid and effective
as fully as hereinabove provided in the case of a conveyance by the Trustee.
Such right to appoint a Successor or Substitute Trustee shall exist as often as
and whenever the Trustee, original, successor, or substitute, cannot or will not
act or has been removed. Grantor specifically covenants and stipulates that: the
recitals in the conveyance made to the purchaser, either by the Trustee or any
Successor or Substitute Trustee, shall be full proof and evidence of the matters
therein stated; no other proof shall be requisite of the request by the Majority
Holders on the Trustee or on any Successor or Substitute Trustee to enforce this
trust, or of the due, timely, and proper posting, filing, and giving of all
notices and making of the sale, or any particulars thereof, or of the inability,
refusal, or failure of the Trustee or any Successor or Substitute Trustee to
act, or of the removal of the Trustee or any Successor or Substitute Trustee, or
of the appointment of a Successor or Substitute Trustee, as herein provided,
either as to the legality of its appointment or otherwise, or of the
contingencies which brought about the failure or inability of the Trustee or any
Successor or Substitute Trustee to act, or of its removal, as the case may be;
all prerequisites of said sale shall be presumed to have been performed; and any
sale made under the powers herein granted shall be a perpetual bar against
Grantor, its successors and assigns.
(S)5.9 The right of sale hereunder shall not be exhausted by one or any sale,
but, so long as any of the Obligations remain unpaid, the Trustee or Successor
or Substitute Trustee may make other and successive sales until all the
Mortgaged Properties shall be legally sold. Beneficiaries may, at their option,
institute appropriate proceedings of foreclosure at law or in equity.
ARTICLE VI
MISCELLANEOUS
(S)6.1 Conflict of Law. In the event any item, term, or provision contained in
this Mortgage is in conflict or may be held hereafter to be in conflict with any
applicable laws, this Mortgage shall be affected only as to its application to
such item, term, or provision and shall in all other respects remain in full
force and effect.
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(S)6.2 Headings. All article and section titles or captions contained in this
Mortgage or in any schedule or exhibit hereto are for convenience only and shall
not be deemed a part of this Mortgage and shall not affect the meaning or
interpretation of this Mortgage.
(S)6.3 Usury. Grantor and Beneficiaries specifically intend and agree that
this Mortgage is subject in all respects to 24 of the Note Purchase Agreement
which is hereby referred to and incorporated herein for all purposes.
(S)6.4 No Impairment of Security. Grantor agrees that no other security, now
existing or hereafter taken, for the Obligations shall be impaired or affected
in any manner by the execution hereof; no security subsequently taken by any
holder of the Notes shall impair or affect in any manner the security given by
this Mortgage; all security for the payment of the Obligations shall be taken,
considered, and held as cumulative; and the taking of additional security shall
at no time release or impair any security by endorsement or otherwise previously
given. Grantor further agrees that any part of the security herein described may
be released without in anywise altering, varying, or diminishing the force of,
effect of, or lien, security interest and assignment of rents created by, this
Mortgage, or of any renewal or extension of said lien, security interest and
assignment of rents, and that this Mortgage shall continue as a first lien,
security interest and assignment of rents on all the Mortgaged Properties not
expressly released until all Obligations are fully paid.
(S)6.5 Enforcement. The commencement of an action to foreclose any lien,
security interest or assignment under this Mortgage either on any matured
portions of the Obligations or for all Obligations shall never be considered an
election so as to preclude foreclosure under any power of sale herein contained
after dismissal of the suit.
(S)6.6 Waivers. Grantor specifically waives any notice of the creation,
advancement, existence, extension or renewal of, or of any indulgence with
respect to, the Obligations, and any part thereof, and of non-payment thereof or
default thereon, and waives demand (including, but not by way of limitation,
demand for payment of an overdue installment), protest, presentment and notice
of demand, protest, presentment and notice of intent to accelerate maturity and
notice of acceleration of maturity with respect to the Obligations, and waives
notice of the amount of the Obligations outstanding at any time, and agrees that
the maturity of the Obligations, and any part thereof, may be accelerated,
extended or renewed by Beneficiaries without notice or consent by Grantor.
(S)6.7 No Waiver. Grantor agrees that no renewal or extension of, or any other
indulgence with respect to, the Obligations or any part thereof, no release of
any security (other than an express release of this Mortgage), for the payment
of the Obligations or any part thereof, no release of Grantor or any other
Person primarily or secondarily liable for the payment of the Obligations or any
part thereof (including any maker, endorser, guarantor or surety), no delay in
enforcement of payment of the Obligations or any part thereof, and no delay or
omission or lack of diligence in exercising any right or power with respect to
the Obligations, or any other security
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therefor or guaranty thereof, shall in any manner impair or affect the rights of
Beneficiaries hereunder. Grantor specifically agrees that it shall not be
required, and that Grantor shall not be entitled to require, that Beneficiaries
file suit or proceed to obtain a judgment against Grantor or any other Person or
that Beneficiaries proceed against or foreclose against or seek to realize upon
any other security now or hereafter existing for the payment of the Obligations
or any part thereof, or file suit or proceed to obtain a judgment against any
other party (maker, guarantor, endorser or surety) obligated to pay the
Obligations before, or as a condition to, or at any time after, foreclosing upon
or otherwise selling or disposing of or utilizing the Mortgaged Properties for
the purpose of paying the Obligations or any part thereof. Grantor expressly
waives any right to the benefit of or to require or control application of any
other security or the proceeds of any other security now existing or hereafter
obtained by Beneficiaries from any Person other than the Grantor as security for
the payment of the Obligations.
(S)6.8 Waiver of Marshalling. To the extent that Grantor may lawfully do so,
Grantor hereby expressly waives any right pertaining to the marshalling of
assets, the exemption of homestead, the administration of estates of decedents,
or other matter to defeat, reduce or affect the right of Beneficiaries to
foreclose the Mortgaged Properties for the collection of the Obligations
(without any prior or different resort for collection), or the right of
Beneficiaries to the payment of the Obligations out of the proceeds of sale of
the Mortgaged Properties in preference to every other person and claimant.
(S)6.9 Partial Invalidity. If any provision of this Mortgage is held to be
illegal, invalid, or unenforceable under present or future laws effective while
this Mortgage is in effect, the legality, validity and enforceability of the
remaining provisions of this Mortgage shall not be affected thereby, and in lieu
of each such illegal, invalid or unenforceable provision there shall be added
automatically as a part of this Mortgage a provision that is legal, valid and
enforceable and as similar in terms to such illegal, invalid or unenforceable
provision as may be possible.
(S)6.10 Usage of Terms. The term "Grantor" as used herein shall include not
only the party who is designated as Grantor and who executes this Mortgage but
also the successors, legal representatives, and assigns of such party, including
without limitation any successor entity pursuant to (S)9.11 of the Note Purchase
Agreement. Whenever the context requires, the gender of words used herein shall
include the masculine, feminine, and neuter, and number of words used herein
shall include the singular and the plural.
(S)6.11 Governing Law. This Mortgage shall be construed and enforced in
accordance with, and governed by, the laws of the State of Texas.
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(S)6.12 Notices. All notices, consents, approvals, and other communications
required hereunder shall be in writing, and shall be given and deemed effective
as provided in (S)23 of the Note Purchase Agreement.
IN WITNESS WHEREOF, Grantor has executed this Mortgage on the date of the
acknowledgment below to be effective for all purposes as of the Effective Date.
WEINGARTEN REALTY INVESTORS
By:_________________________________
Joseph W. Robertson, Jr.
Executive Vice President
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STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on [date of acknowledgment], by
Joseph W. Robertson, Jr. (personally known to me), Executive Vice President of
Weingarten Realty Investors, a Texas real estate investment trust, on behalf of
said real estate investment trust.
___________________________________
Notary Public Signature
(PERSONALIZED SEAL)
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Attachment A
To Deed of Trust,
Assignment of Rents,
Security Agreement and
Financing Statement
Description of Tracts of Land
EL DORADO CENTER
Being a 9.8467 acre tract of land in the August Whitlock Survey, Abstract No.
797, Harris County, Texas and being a portion of that land conveyed to Randall's
Center/El Dorado Venture as described in deed recorded under Harris County
Clerk's File Number J 030147; also being a portion of Reserve "A" of El Dorado
Center per plat recorded in Volume 332, Page 139 of the Harris County Map
Records and being more particularly described by metes and bounds as follows
with all bearings based on said deed:
COMMENCING at a one inch iron rod found marking the intersection of the
southwesterly right-of-way line of State Highway No. 3, 120 feet wide with the
southeasterly right-of-way line of El Dorado Boulevard, 100 feet wide as
described in deed recorded under Harris County Clerk's File No. D 520995; said
point being the north corner of a 0.6250 acre tract conveyed to Mobil Oil
Corporation as described in deed recorded under Harris County Clerk's File
Number H 108447;
THENCE along the southeasterly right-of-way line of said El Dorado Boulevard and
the northwest line of said 0.6250 acre tract, South 48 degrees 54 minutes 30
seconds West, a distance of 165.00 feet to the POINT OF BEGINNING, the westerly
north corner of the herein described tract and the west corner of said 0.6250
acre tract; from which a found 5/8 inch iron rod bears North 47 degrees 55
minutes West, 0.2 feet;
THENCE along the southwest line of said 0.6250 acre tract, South 41 degrees 10
minutes 49 seconds East, a distance of 165.00 feet to an interior corner of the
herein described tract and the south corner of said 0.6250 acre tract; from
which a found 5/8 inch iron rod (bent) bears North 40 degrees 21 minutes West,
0.2 feet;
THENCE along the southeast line of said 0.6250 acre tract, North 48 degrees 54
minutes 30 seconds East, a distance of 165.00 feet to the easterly north corner
of the herein described tract, the east corner of said 0.6250 acre tract and a
point on the southwesterly right-of-way line of said State Highway No. 3; from
which a found 1 inch iron rod bears North 33 degrees 10 minutes West, 0.2 feet;
THENCE along the southwesterly right-of-way line of said State Highway No.3,
South 41 degrees 10 minutes 49 seconds East, a distance of 451.43 feet to a P.K.
nail with shiner set for the east corner of the herein described tract and the
north corner of that
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tract of land conveyed to Bayfield Public Utility District as described in deed
recorded under Harris County Clerk's File Number J 301839;
THENCE along the northwesterly line of said Bayfield Public Utility District
tract, South 48 degrees 50 minutes 19 seconds West, a distance of 596.40 feet to
a P.K. nail with shiner set for the easterly south corner of the herein
described tract, a point in the northeast line of Reserve "B" of said El Dorado
Center and the west corner of said Bayfield Public Utility District tract;
THENCE along the north line of said Reserve "B", North 86 degrees 09 minutes 41
seconds West, a distance of 217.79 feet to a 5/8 inch iron rod found marking the
westerly south corner of the herein described tract, the northwest corner of
said Reserve "B" and a point on the northeast line of a 150-foot wide Bayfield
Public Utility District fee strip as described in deed recorded under Harris
County Clerk's File Number F 778544;
THENCE along the northeast line of said fee strip, North 41 degrees 09 minutes
41 seconds West, a distance of 489.32 feet to an "X" cut in concrete set marking
the west corner of the herein described tract, the north corner of said fee
strip and a point in the southeasterly right-of-way line of said El Dorado
Boulevard;
THENCE along the southeasterly right-of-way line of said El Dorado Boulevard as
follows:
North 52 degrees 17 minutes 20 seconds East, a distance of 75.15 feet to a
5/8 inch iron rod found marking the point of curvature of a curve to the
right;
Northeasterly,207.41 feet along the arc of said curve to the right having a
radius of 8950.00 feet a central angle of 01 degrees 19 minutes 40 seconds
and whose chord bears North 52 degrees 57 minutes 10 seconds East, a
distance of 207.41 feet to the point of reverse curvature, from which a
found 5/8 inch iron rod bears South 37 degrees 39 minutes East, 0.2 feet;
Northeasterly, 168.45 feet along the arc of said curve to the left having a
radius of 2050.00 feet, a central angle of 04 degrees 42 minutes 30 seconds
and whose chord bears North 51 degrees 15 minutes 45 seconds East, a
distance of 168.40 feet to a 5/8 inch iron rod found marking the point of
tangency;
North 48 degrees 54 minutes 30 seconds East, a distance of 135.06 feet to
the POINT OF BEGINNING and containing 9.8467 acres of land.
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NORTHWAY CENTER
Tract 1:
Being a tract or parcel containing 10.8590 acres (473,018 square feet) of land
situated in the John Flowers Survey, Abstract Number 269 Harris County, Texas
and being all of Unrestricted Reserves "A" and "B" of the Corrected Plat of
Deauville Plaza, Section One, a subdivision of record in Volume 251, Page 61 of
the Harris County Map Records, said 10.8590 acre tract being more particularly
described as follows (all bearings are referenced to the Texas State Plane
Coordinate System, South Central Zone):
BEGINNING at a 3/4 inch iron rod found marking the most easterly corner of said
Reserve "A" and the most northerly corner of said Reserve "B" at the
intersection of the southwesterly right-of-way (R.O.W.) line of U.S. Highway
Number 290 (known as Northwest Freeway and based on a width of 300 feet) with
the southerly line of West 34th Street (based on a width of 120 feet at this
point);
THENCE, South 44. 56' 58" East, along the southwesterly R.O.W. line of said U.S.
Highway Number 290, 619.50 feet to a 5/8 inch iron rod found marking the most
northerly southeast corner of said Reserve "B" and the most northerly corner of
Unrestricted Reserve "C" of said corrected plat of Deauville Plaza, Section One;
THENCE, South 45. 03' 02" West, 150.00 feet to a 5/8 inch iron rod found marking
an interior corner of the herein described tract and the most westerly corner of
said Reserve "C";
THENCE, South 44. 56' 58" East, 221.94 feet to a 1/2 inch iron rod found marking
the most southerly corner of said Reserve "C" and the most southerly southeast
corner of said Reserve "B" and being in the northwesterly R.O.W. line of
Deauville Plaza Drive (based on a width of 60 feet);
THENCE, in a Southwesterly direction with the northwesterly R.O.W. line of said
Deauville Plaza Drive,337.79 feet along a curve to the right, said curve having
a central angle of 34. 33' 37", a radius of 560.00 feet and whose chord bears
South 43. 50' 02" West, 332.69 feet to a 5/8 inch iron rod found marking the
most southerly corner of said Reserve"B";
THENCE, North 28. 53' 09" West, 81.70 feet to a 5/8 inch iron rod found marking
an angle point in the southwesterly line of said Reserve "B";
THENCE, North 44. 56' 58" West, 290.79 feet to an angle point in the
southwesterly line of said Reserve "B";
THENCE, North 89. 56' 58" West, 63.64 feet to a 5/8 inch iron rod found marking
an angle point in the southwesterly line of said Reserve B";
THENCE, North 44. 56' 58" West, 218.54 feet to an angle point in the
southwesterly line of said Reserve "B";
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THENCE, North 89. 56' 58" West, 37.42 feet to a 5/8 inch iron rod found marking
an angle point in the southwesterly line of said Reserve "B";
THENCE, North 44. 56' 58" West, 309.09 feet to a 5/8 inch iron rod found marking
the southwesterly corner of said Reserve "B";
THENCE, in a northerly direction, 87.35 feet along a curve to the right, said
curve having a central angle of 15. 53' 20", a radius of 315.00 feet and whose
chord bears North 14. 08' 50" East, 87.07 feet to a 5/8 inch iron rod found
marking a point of reverse curvature;
THENCE, continuing in a northerly direction,125.10 feet along a curve to the
left, said curve having a central angle of 25. 09' 03", a radius of 285.00 feet
and whose chord bears North 09. 30' 58" East, 124.10 feet to a 5/8 inch iron rod
found marking a point of tangency;
THENCE, North 03. 03' 33" West, 65.75 feet to a 5/8 inch iron rod set marking
the northwesterly corner of Reserve "B" and being in the southerly R.O.W. line
of the aforementioned West 34th Street;
THENCE, North 89. 48' 12" East, at 30.04 feet pass the northwesterly corner of
the aforementioned Reserve "A", in all a distance of 88.79 feet to a 1/2 inch
iron rod found for an angle point in the southerly R.O.W. line of said West 34th
Street;
THENCE, North 86. 56' 27" East, 334.23 feet along the southerly R.O.W. line of
said West 34th Street to the POINT OF BEGINNING and containing 10.8590 acres
(473,018 square feet) of land. This description is based on the Boundary and
Improvement Survey and plat made by Terra Surveying Company, Inc., dated
September 22, 1986, updated May 24, 1994, TSC Project Number 0268-8602.
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Tract 2:
Being a tract or parcel containing 6.6539 acres (289,842 square feet) of land
situated in the John Flowers Survey, Abstract Number 269, and being all of
Unrestricted Reserves "D" and "E" of the Corrected Plat of Deauville Plaza,
Section One, a subdivision of record in Volume 251, Page 61 of the Harris County
Map Records, said 6.6539 acre tract being more particularly described as follows
(all bearings are referenced to the Texas State Plane Coordinate System, South
Central Zone):
BEGINNING at a 1/2 inch iron rod found for the most easterly corner of said
Reserve "E" and being at the intersection of the southwesterly right-of-way
(R.O.W.) line of U.S. Highway Number 290 (known as Northwest Freeway and based
on a width of 300 feet) with the northerly line of a Houston Lighting and Power
Company 150 foot wide Fee Strip as described in Deed recorded in Volume 2154,
Page 1 of the Deed Records of Harris County, Texas;
THENCE, South 88. 02' 10" West, 525.87 feet along the northerly line of said
Houston Lighting and Power Company Fee Strip and the southerly line of Reserves
"E" and "D", to a 1/2 inch rod found marking the southerly corner of said
Reserve "D" and the most easterly corner of Reserve "F" of said corrected plat
of Deauville Plaza, Section One;
THENCE, North 44. 56' 58" West, 553.74 feet to a 1/2 inch iron rod found marking
the most westerly corner of said Reserve "D" and the most northerly corner of
said Reserve "F" and being in the southeasterly R.O.W. line of Deauville Plaza
Drive (based on a width of 60 feet);
THENCE, in a Northeasterly direction, 290.86 feet along the southeasterly R.O.W.
line of said Deauville Plaza Drive, along a curve to the left whose central
angle is 26. 52' 46", has a radius of 620.00 feet and whose chord bears North
36. 53' 18" East, 288.20 feet to a point of reverse curvature;
THENCE, continuing in a Northeasterly direction, 91.80 feet along the
southeasterly R.O.W. line of said Deauville Plaza Drive, along a curve to the
right, whose central angle is 19. 28' 50", has a radius of 270.00 feet and whose
chord bears North 33. 11' 20" East, 91.36 feet to a 1/2 inch iron rod found
marking the westerly corner of a 10 foot cutback line;
THENCE, North 89. 31' 13" East, 14.01 feet along said 10 foot cutback line to a
1/2 inch iron rod found in the southwesterly R.O.W. line of the aforementioned
U.S. Highway Number 290;
THENCE, South 44. 56' 58" East, 962.16 feet along the southwesterly R.O.W. line
of said U.S. Highway Number 290 and the northeasterly line of Reserves "D" and
"E" to the POINT OF BEGINNING and containing 6.6539 acres (289,842 square feet)
of land. This description is based on the Boundary and Improvement Survey and
plat made by Terra Surveying Company, Inc., dated September 17, 1986, update May
24, 1994, TSC Project Number 0268-8602-S.
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Tract 3:
Being a tract or parcel containing 0.6874 acre (29,942 square feet) of land in
the John Flowers Survey, Abstract Number 269, Harris County, Texas, and being
all of that same 0.687 acre tract known as Unrestricted Reserve "C" of the
corrected plat of Deauville Plaza, Section One, a subdivision of record in
Volume 251, Page 61 of the Harris County Map Records, said 0.6874 acre tract
being more particularly described as follows (all bearings are referenced to the
Texas State Plane Coordinate System, South Central Zone):
COMMENCING for reference at a 3/4-inch iron rod found marking the most easterly
corner of Unrestricted Reserve "A" and the most northerly corner of Unrestricted
Reserve "B" of said Deauville Plaza, Section One, at the intersection of the
southwesterly right-of-way (R.O.W.) line of U.S. Highway Number 290 (known as
Northwest Freeway and based on a width of 300 feet), with the southerly line of
West 34th Street (based on a width of 120 feet at this point);
THENCE, South 44. 56' 58" East, along the southwesterly R.O.W. line of said U.S.
Highway Number 290, 619.50 feet to a 5/8-inch iron rod found for the POINT OF
BEGINNING and the most northerly corner of Unrestricted Reserve "C" and the
herein described tract;
THENCE, continuing along said southwesterly R.O.W. line, South 44. 56' 58" East,
178.36 feet to a 5/8-inch iron rod set for the most northerly east corner of
said Unrestricted Reserve "C" and the herein described tract and being the most
northerly end of a 10 foot cutback;
THENCE, along said cutback line, South 00. 23' 00" East, 14.25 feet to a 5/8-
inch iron rod found marking the most southerly east corner of said Unrestricted
Reserve "C" and the herein described tract and being in the northwesterly R.O.W.
line of Deauville Plaza Drive (60 feet wide) and in the arc of a curve;
THENCE, 114.42 feet along the northwesterly R.O.W. line of said Deauville Plaza
Drive and following the arc of a curve to the left, having a central angle of
19. 51' 56", a radius of 330.00 feet and a chord which bears South 33. 22' 54"
West, 113.85 feet to a 5/8-inch iron rod found for a point of reverse
curvature;
THENCE, continuing along said northwesterly R.O.W. line, 30.35 feet along the
arc of a curve to the right, having a central angle of 03. 06' 19", a radius of
560.00 feet and a chord which bears South 25. 00' 06" West, 30.35 feet to a 1/2-
inch iron rod found for the most easterly corner common to said Unrestricted
Reserve "C" and the aforementioned Unrestricted Reserve "B" and marking the most
southerly corner of the herein described tract;
THENCE, departing said northwesterly R.O.W. line, North 44. 56' 58" West, 221.94
feet along the line common to said Unrestricted Reserve "C" and Unrestricted
Reserve "B" to a 5/8-inch iron rod found marking the most westerly corner of
said Unrestricted
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Reserve "C" and an interior corner of said Unrestricted Reserve "B" and marking
the most westerly corner of the herein described tract;
THENCE, North 45. 03' 02" East, 150.00 feet along the line common to said
Unrestricted Reserve "C" and Unrestricted Reserve "B" to the POINT OF BEGINNING
and containing 0.6874 Acre (29,942 square feet) of land. This description is
based on the Boundary and Improvement Survey and plat made by Terra Surveying
Company, Inc., dated September 22, 1986, updated May 24,1994, TSC Project Number
2678-8701-S.
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WILLIAMS TRACE CENTER
Tract 1:
Being a tract or parcel of land containing 12.5903 acres (548,434 square feet)
and being situated in the Elijah Alcorn League, Abstract No. 1, Fort Bend
County, Texas, and being out of that certain 14.321 acre Commercial Reserve in
Colony Grant, Section One as recorded in Volume 27, Page 12 of the Plat Records
of Fort Bend County, Texas; said 12.5903 acre tract being more particularly
described by metes and bounds as follows (with all bearings referenced to the
Texas Coordinate System, South Central Zone):
BEGINNING at the most northeasterly corner of said 14.321 acre tract, same being
the northeasterly corner of the herein described 12.5903 acre tract, being at
the intersection of the southwesterly right-of-way line of State Highway No. 6
(130 feet wide) as widened in Volume 1904, Page 1630 of the Off1cial Records of
Fort Bend County with the northwesterly line of the 150 foot wide Fort Bend
County Levee Improvement District No. 2 Drainage Easement as recorded in Volume
841, Page 90 of the Deed Records of Fort Bend County, from which a found 1/2-
inch iron rod bears 0.18', east;
THENCE South 20. 45' 59" West along the line common to said Commercial Reserve
and said 150 foot wide Drainage Easement, a distance of 235.00 feet to an "X"
cut in concrete for a point of curvature;
THENCE in a southerly direction, a distance of 316.45 feet along the
northwesterly line of said 150 foot wide Drainage Easement and the southeasterly
line of said Commercial Reserve, following the arc of a curve to the left,
having a radius of 1235.00 feet and a central angle of 14. 40' 53" (Chord = S
13. 25' 33" W, 315.59 feet) to a 1/2-inch iron rod set for the southeasterly
corner of said Commercial Reserve and the herein described 12.5903 acre tract,
same being a northeasterly corner of Block 1 of said Colony Grant, Section One;
THENCE North 69. 14' 01" West along the line common to said Commercial Reserve
and Block 1, a distance of 548.53 feet to an angle point at a fence corner post;
THENCE North 21. 34' 46" West along the line common to said Commercial Reserve
and Block 1, a distance of 165.69 feet to a 1/2-inch iron rod set for an angle
point;
THENCE North 70. 05' 58" West along the line common to said Commercial Reserve
and Block 1 and its northwesterly projection, a distance of 483.47 feet to a
1/2-inch iron rod set for point of intersection with the southeasterly right-of-
way line of Williams Trace Boulevard (120 feet wide) as recorded in Volume 20,
Page 11 of the Plat Records of Fort Bend County, same being the northwesterly
line of said Commercial Reserve and being the most northerly corner of a 0.3703
acre tract described in Volume 2091, Page 161 of the Official Records of Fort
Bend County;
THENCE in a northeasterly direction, a distance of 213.81 feet along the
southeasterly right-of-way line of said Williams Trace Boulevard and the
northwesterly line of said
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<PAGE>
Commercial Reserve, following the arc of a curve to the right, having a radius
of 1940.00 feet and a central angle of 06. 18' 53" (Chord = N 17. 36' 33" E,
213.70 feet) to a point of tangency, which falls on top of a manhole lid;
THENCE North 20. 45' 59" East along the southeasterly right-of-way line of said
Williams Trace Boulevard and the northwesterly line of said Commercial Reserve,
at 44.47 feet pass a 1/2-inch iron rod set for the westerly corner of a 0.6026
acre lease tract described in Volume 1126, Page 376 of the Deed Records of Fort
Bend County, in all a total distance of 181.47 feet to a 1/2-inch iron rod set
for the most westerly return at the intersection with the southwesterly right-
of-way line of said State Highway No. 6, being the most southerly corner of that
certain 309.9 square foot parcel described in Volume 2223, Page 939 of the
Official Records of Fort Bend County, from which a brass disc found in concrete
bears 1.35', N 40. W;
THENCE in a northerly and easterly direction, a distance of 59.69 feet along the
southwesterly right-of-way line of State Highway No. 6, following the arc of a
curve to the right, having a radius of 38.00 feet and a central angle of 90. 00'
00" (Chord = N 65. 45' 59" E, 53.74 feet) to a 1/2-inch iron rod set for the
most northerly return, from which a found brass disc in concrete bears 1.13', N
51. W;
THENCE South 69. 14' 01" East along the northeasterly line of said 14.321 acre
Commercial Reserve and the southwesterly right-of-way line of said State Highway
No. 6, at 112.00 feet pass the northeast corner of said 0.6026 acre tract, same
being a corner common to that certain 11.3520 acre tract conveyed to Weingarten
Realty Investors in Volume 2561, Page 685 of the Official Records of Fort Bend
County, from which a found 1/2-inch iron rod bears southwest 0.14', at 254.00
feet pass a 1/2-inch iron rod set for the northerly corner of a 0.6428 acre
tract described in Volume 1155, Page 893 of the Official Records of Fort Bend
County, same being an easterly corner of said 11.3520 acre tract, at 414.00 feet
pass the easterly corner of said 0.6428 acre tract, from which a found 5/8-inch
iron rod bears southwest 0.30', in all a total distance of 1077.00 feet to the
POINT OF BEGINNING and containing 12.5903 acres of land.
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<PAGE>
Tract 2:
Being a tract or parcel of land containing 12.0817 acres (526,280 square feet)
and being situated in the Elijah Alcorn League, Abstract No. 1, and the William
Stafford League, Abstract No. 89, Fort Bend County, Texas, being all of that
certain 11.4138 acre Commercial Reserve "C" in Target/Williams Trace Two
recorded in Slide 759/A of the Plat Records of Fort Bend County, Texas, save and
except that certain 0.0136 acre tract described in Fort Bend County Clerk's File
No.8822709, being all of that certain 0.0011 acre tract out of Commercial
Reserve "B" in said Target/Williams Trace Two, described in Fort Bend County
Clerk's File No. 8822515, and being a 0.6804 acre portion of that certain 0.7467
acre tract described in Volume 1126, Page 377 of the Deed Records of Fort Bend
County, being the remainder of that certain 21.065 acre Commercial Reserve "C",
Settlers Park Section III as recorded in Volume 27, Page 13 of the Plat Records
of Fort Bend County; said 12.0817 acre tract being more particularly described
by metes and bounds as follows (with all bearings referenced to the Texas
Coordinate System, South Central Zone):
BEGINNING at a 1/2-inch iron rod set for the most westerly return at the
intersection of the northeasterly right-of-way line of Flintwood Drive (50 feet
wide) as recorded in Volume 27, Page 13 of the Plat Records of Fort Bend County,
with the northwesterly right-of-way line of Settlers Way Boulevard (100 feet
wide) as recorded in Volume 20, Page 12 of the Plat Records of Fort Bend County
and modified in Volume 2223, Page 944 of the Official Records of Fort Bend
County, same being the most westerly south corner of said Commercial Reserve "C"
and the herein described 12.0817 acre tract;
THENCE North 69. 14' 01" West along the northeasterly right-of-way line of said
Flintwood Drive and the southwesterly line of said Commercial Reserve "C", a
distance of 762.40 feet to a 5/8-inch iron rod found for a point of curvature;
THENCE in a westerly direction, a distance of 52.36 feet along the northeasterly
right-of-way line of said Flintwood Drive and the southwesterly line of said
Commercial Reserve "C", following the arc of a curve to the left, having a
radius of 50.00 feet and a central angle of 60. 00' 00" (Chord = S80. 45' 59" W,
50.00 feet) to a 5/8-inch iron rod found for a corner common to said Commercial
Reserves "C" and "B";
THENCE North 69. 14' 01" West along the line common to said Commercial Reserves
"B" and "C", a distance of 103.29 feet to an "X" cut found in concrete for the
most westerly corner of said Commercial Reserve "C" and the herein described
12.0817 acre tract;
THENCE North 20. 45' 59" East along the line common to said Commercial Reserves
"B" and "C", a distance of 65.00 feet to a 5/8-inch rod found for an interior
corner;
THENCE North 69. 14' 01" West along the line common to said Commercial Reserves
"B" and "C", a distance of 10.00 feet to a 5/8-inch rod found for corner;
THENCE North 20. 45' 59" East along the line common to said Commercial Reserves
"B" and "C", at 149.67 feet pass the most westerly corner of said 0.0011 acre
tract and
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<PAGE>
a corner common to said Reserves "B" and "C", at 159.67 feet pass the most
northerly corner of said 0.0011 acre tract in the line common to said Reserves
"B" and "C", in all a total distance of 173.00 feet to the most southerly corner
of said 0.0136 acre tract;
THENCE along the southeasterly side of said 0.0136 acre tract, the following
five courses and distances:
South 69. 14' 01" East, a distance of 5.00 feet to an "X" cut in concrete for
corner;
North 20. 45' 59" East, a distance of 10.00 feet to an "X" cut in concrete for
corner;
North 69. 14' 01" West, a distance of 7.99 feet to an "X" cut in concrete for
corner;
North 20. 45' 59" East, a distance of 25.00 feet to an "X" cut in concrete for
corner;
North 69. 14' 01" West, a distance of 18.00 feet to an "X" cut in concrete for
the most northerly corner of said 0.0136 acre tract in the line common to said
Commercial Reserves "B" and "C";
THENCE North 20. 45' 59" East along the line common to said Commercial Reserves
"B" and "C", a distance of 273.67 feet to an "X" cut in concrete for corner;
THENCE South 69. 14' 01" East along the line common to said Commercial Reserves
"B" and "C", a distance of 18.00 feet to an "X" cut in concrete for corner;
THENCE North 20. 45' 59" East along the line common to said Commercial Reserves
"B" and "C", a distance of 53.33 feet to an "X" cut on a concrete curb for the
most northerly corner of said Commercial Reserve "C" and the herein described
12.0817 acre tract, being in the southwesterly right-of-way line of State
Highway No. 6 (130 feet wide) as widened in Volume 1904, Page 1630 of the Deed
Records of Fort Bend County, Texas;
THENCE South 69. 14' 01" East along the northeasterly line of said Commercial
Reserve "C" and the southwesterly right-of-way line of said State Highway No. 6,
at 707.06 feet pass a 1/2-inch iron rod set for the most northerly corner of
said 0.7467 acre tract, in all a total distance of 844.06 feet to a 1/2-inch
iron rod set for the most northerly return at the intersection with the westerly
right-of-way line of said Settlers Way Boulevard (100 feet wide) and being the
westerly corner of that certain 309.8 square foot parcel described in said
Volume 2223, Page 944 of the Official Records of Fort Bend County, from which a
brass disc found in concrete bears 2.92', S87.E;
THENCE in an easterly and southerly direction, a distance of 59.64 feet along
the southwesterly right-of-way line of State Highway No. 6, following the arc of
a tangent curve to the right, having a radius of 38.00 feet and a central angle
of 89. 55' 04"
G-27
<PAGE>
(Chord = S24. 16' 29" E, 53.70 feet) to a 1/2-inch iron rod set for the most
easterly return and a point of reverse curvature in the westerly right-of-way
line of said Settlers Way Boulevard, from which a brass disc found in concrete
bears 4.77', N57. E;
THENCE in a southerly direction, at 132.15 feet along the westerly right-of-way
line of said Settlers Way Boulevard, following the arc of a curve to the left,
having a radius of 2050.00 feet and a central angle of 03. 41' 37" (chord = S18.
50' 14" W, 132.13 feet) pass a 5/8-inch iron rod found for the southeast corner
of said 0.7467 acre tract, same being the most easterly northeast corner of said
Target/Williams Trace Two, in all a total arc distance of 511.22 feet, having a
radius of 2050.00 feet and a central angle of 14. 17' 18" (Chord = S13. 32' 23"
W, 509.90 feet) to a 1/2-inch iron rod set for the most northerly return at the
intersection of the northwesterly right-of-way line of said Settlers Way
Boulevard with the northeasterly right-of-way line of said Flintwood Drive;
THENCE in a westerly direction, a distance of 45.54 feet along said return at
the intersection of the northwesterly right-of-way line of said Settlers Way
Boulevard with the northeasterly right-of-way line of said Flintwood Drive,
following the arc of a curve to the right, having a radius of 25.00 feet and a
central angle of 104. 22' 14" (Chord = S58. 34' 52" W, 39.50 feet) to the POINT
OF BEGINNING and containing 12.0817 acres of land.
G-28
<PAGE>
Attachment B
To Deed of Trust,
Assignment of Rents,
Security Agreement and
Financing Statement
Description of Leases
EL DORADO CENTER
1. Lease Contract dated March 8, 1984 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Hill's Discount Liquors, Inc., assigned to Frank N. Samperi effective
September 1, 1985, further assigned to Abeson Kureekottil, K. T. Zacharia,
Toby C. Thomas and South Texas Liquor, Inc., effective August 1, 1989,
further assigned to Lahoti Enterprises, Inc. effective September 16, 1991,
further assigned to Vijay Bahl and Sudesh Narang effective February 24, 1994,
d/b/a Value Discount Liquor.
2. Lease Contract dated November 30, 1983 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty
Investors, and 3 Beall Brothers 3, Inc., and subleased to Palais Royal, Inc.
effective July 17, 1991.
3. Lease Contract dated June 25, 1992 between Weingarten Realty Investors and
Cookie Bouquet of Clear Lake, Inc., d/b/a Cookie Bouquet.
4. Lease Contract dated February 10, 1984 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty
Investors, and Eckerd Drugs of Texas, Inc., d/b/a Eckerd's.
5. Lease Contract dated January 26, 1990 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty
Investors, and Sarah Gillette, d/b/a RE/MAX.
6. Lease Contract dated March 7, 1984 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty
Investors, and Hair Innovations, Inc., d/b/a Hair Innovations.
7. Lease Contract dated October 3, 1990 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty
Investors, and House of Coffee Beans, Inc., d/b/a House of Coffee Beans.
8. Lease Contract dated October 30, 1987 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty
Investors, and Mohamad J. Javadi, d/b/a Air Sea Travel & Tours.
G-29
<PAGE>
9. Lease Contract dated November 26, 1990 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Edwin Kieke, D.C.
10. Lease Contract dated February 26, 1990 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Little Caesar Enterprises, Inc., d/b/a Little Caesars.
11. Lease Contract dated August 5, 1985 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Francis Andrew Gaffney and Sheila Gaffney, assigned to Stephen M. Manor and
Kimberlee A. Manor, effective September 1, 1991, with Jodine M. Roe added as
an additional tenant under the lease effective June 1, 1993, d/b/a The Flower
Market.
12. Lease Contract dated May 15, 1985 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Bruce W. McCorkle, d/b/a Farmer's Insurance.
13. Lease Contract dated June 22, 1989 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
McDonald's Corporation, d/b/a McDonald's.
14. Lease Contract dated May 10, 1993 between Weingarten Realty Investors and
Meadows Frame & Floral, Inc., d/b/a Meadows Framing.
15. Lease Contract dated June 21, 1984 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Frank Morello, d/b/a Fox Den Fashions.
16. Lease Contract dated September 27, 1989 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and Syed
Abood Ali, assigned to Nasa One Hour Photo, Inc., effective October 1, 1991,
d/b/a Nasa 1 Hour Photo Lab.
17. Lease Contract dated July 24, 1984 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and The
Original Honey Baked Ham Co., Inc., d/b/a Honey Baked.
18. Lease Contract dated March 29, 1984 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Dahyu Patel and Saroj Patel, d/b/a Gift Creations.
19. Lease Contract dated June 24, 1983 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Randall's Food Markets, Inc., with the current tenant being Randall's Food &
Drugs, Inc., a Delaware corporation, successor by merger, effective December 28,
1992, d/b/a Randall's.
G-30
<PAGE>
20. Lease Contract dated March 21, 1985 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and Subway
Sandwich Shops, Inc., d/b/a Subway Sandwiches.
21. Lease Contract dated February 13, 1985 between Randall's Center/El Dorado
Venture, with the current Landlord being Weingarten Realty Investors, and
Valliani Interests, Inc., d/b/a Tip Top Cleaners.
NORTHWAY CENTER
1. Lease Contract dated July 31, 1990 between Weingarten Realty Investors and
Advantage Travel, Inc., d/b/a Advantage Travel.
2. Lease Contract dated July 23, 1993 between Weingarten Realty Investors and
A.I.S. of Texas, Inc.
3. Lease Contract dated June 2, 1975 between AGCORP, INC., with the current
Landlord being Weingarten Realty Investors, and Transcontinental Theaters,
Texas, Inc., with the current tenant being American Multi-Cinema, Inc.,
successor by merger to Transcontinental Theaters, Texas, Inc., on January 15,
1979, d/b/a Festival Six Theatres.
4. Lease Contract dated July 23, 1990 between Weingarten Realty Investors and
Brown Group Retail, Inc., d/b/a Famous Footwear.
5. Lease Contract dated August 13, 1993 between Weingarten Realty Investors and
Linda Bruce and Russell Bruce, d/b/a Country and More.
6. Lease Contract dated April 22, 1985 between Deauville Plaza Partners, with
the current Landlord being Weingarten Realty Investors, and Baldemar G. Cabrera
and El Charro Cabrera, Inc., d/b/a El Charo Mexican Restaurant.
7. Lease Contract dated March 7, 1990 between Weingarten Realty Investors and
Cloth World of Texas, Inc., d/b/a Cloth World
8. Lease Contract dated March 19, 1992 between Weingarten Realty Investors and
Sobey Signs, Inc., assigned to Dodd Signs, Inc., effective March, 1, 1994, d/b/a
Fastsigns.
9. Lease Contract dated August 10, 1988 between Weingarten Realty Investors and
Eastern Onion of Houston, Inc., d/b/a The Party Zone.
10. Lease Contract dated August 12, 1987 between Weingarten Realty, Inc., with
the current Landlord being Weingarten Realty Investors, and Ann Garcia and Mary
Matta, d/b/a Scissor Sizers.
11. Lease Contract dated September 28, 1993 between Weingarten Realty Investors
and Margaret H. Entis, assigned to Trung Quang Pham and Ana Kim Pham,
G-31
<PAGE>
effective December 1, 1993, further assigned to Kim Huu Le effective May 1,
1994, further assigned to Thanh Thi Hoang effective July 1, 1994, d/b/a Elegant
Nails.
12. Lease Contract dated August 11, 1989 between Weingarten Realty Investors
and G.K. Foteh and Jamil Musa, assigned to Hussain S. Hussain, Marwan K. Foteh
and Yousef Dabis, effective May 15, 1990, d/b/a Eats Mesquite Grill.
13. Lease Contract dated August 4, 1977 between Weingarten Realty, Inc., with
the current Landlord being Weingarten Realty Investors, and Jojo's Restaurants,
Inc., d/b/a Jojo's.
14. Lease Contract dated February 23, 1988 between Weingarten Realty, Inc.,
with the current Landlord being Weingarten Realty Investors, and Gim & Liz,
Inc., assigned to King Bo Restaurant IV, Inc., effective October 17, 1991, d/b/a
King Bo Restaurant.
15. Lease Contract dated November 13, 1992 between Weingarten Realty Investors
and Kwik Kopy Corporation, d/b/a Copy Club, Kwik Kopy Printing, and/or Inkwell.
16. Lease Contract dated March 26, 1990 between Weingarten Realty Investors and
M. J. Antone, Inc., d/b/a Antone's.
17. Lease Contract dated March 31, 1987 between Weingarten Realty, Inc., with
the current Landlord being Weingarten Realty Investors, and Mark Dennard
Enterprises, Inc., d/b/a Wings N' Curls Restaurant.
18. Lease Contract dated November 11, 1993 between Weingarten Realty Investors
and The Mattress Firm, Inc., d/b/a The Mattress Firm.
19. Lease Contract dated August 17, 1989 between Weingarten Realty Investors
and Don Motsenbocker, d/b/a Horse and Rider Discount Supply.
20. Lease Contract dated July 22, 1991 between Weingarten Realty Investors and
Neisa Enterprises, Inc.
21. Lease Contract dated December 14, 1990 between Weingarten Realty Investors
and Xuan Van Nguyen, d/b/a Hiteq Computers.
22. Lease Contract dated June 2, 1987 between Weingarten Realty, Inc., with the
current Landlord being Weingarten Realty Investors, and Lewis O'Leary.
23. Lease Contract dated September 27, 1978 between Deauville Plaza Partners,
with the current Landlord being Weingarten Realty Investors, and Oshman Sporting
Goods Co., Texas, d/b/a Oshman's.
G-32
<PAGE>
24. Lease Contract dated April 29, 1988 between Weingarten Realty Investors and
Douglas Peters, d/b/a Sea Sports Scuba.
25. Lease Contract dated February 15, 1988 between Weingarten Realty, Inc.,
with the current Landlord being Weingarten Realty Investors, and Prufrock
Restaurants, Inc., assigned to Prufrock Texas., L.P. effective April 1, 1992,
now known as Texas BEP, L.P. by corporate name change, d/b/a Black-Eyed Pea.
26. Lease Contract dated November 27,1985 between Deauville Plaza Partners,
with the current Landlord being Weingarten Realty Investors, and R. M. Shah
Enterprises, Inc., subleased to Thomas Adair and Kathy Adair by agreement dated
January 14, 1986, d/b/a Fantastic Sams.
27. Lease Contract dated February 17, 1988 between Weingarten Realty, Inc.,
with the current Landlord being Weingarten Realty Investors, and Randall's Food
Markets, Inc., with the current tenant being Randall's Food & Drugs, Inc.,
successor in interest by merger to Randall's Food Markets, Inc., effective
December 28, 1992, d/b/a Randall's.
28. Lease Contract dated February 22, 1994 between Weingarten Realty Investors
and Ranks, Inc., d/b/a Ranks.
29. Lease Contract dated September 30, 1989 between Weingarten Realty Investors
and Yadolah Kamali and Marina Kamali, assigned to Ajinder Pal Singh, effective
January 1, 1991, d/b/a Liquor 7.
30. Lease Contract dated September 28, 1987 between Weingarten Realty, Inc.,
with the current Landlord being Weingarten Realty Investors, and Souper Salads,
Inc., d/b/a Souper Salads.
31. Lease Contract dated July 7, 1989 between Weingarten Realty Investors and
TCBY of Texas, Inc., assigned to Hamid Tehrani effective August 20, 1993, d/b/a
TCBY.
32. Lease Contract dated July 10, 1980 between Deauville Plaza Partners, with
the current Landlord being Weingarten Realty Investors, and United Savings
Association of Texas, subleased to Weight Watchers of South Texas, Inc.,
effective March 18, 1986, d/b/a/a Weight Watchers.
33. Lease Contract dated December 7, 1977 between Deauville Plaza Partners,
with the current Landlord being Weingarten Realty Investors, and Brookhollow
Weiner's, Inc., with the current tenant being Weiner's Stores, Inc., successor
by merger to Brookhollow Weiner's, Inc., effective December 30, 1991, d/b/a
Weiner's.
34. Lease Contract dated September 18, 1987 between Weingarten Realty, Inc.,
with the current Landlord being Weingarten Realty Investors, and William J. Wise
Developments, Inc., d/b/a Cornbreads Billiards.
G-33
<PAGE>
WILLIAMS TRACE CENTER
1. Lease Contract dated July 15, 1992 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Nathan
L. Antley and Reni V. Antley, d/b/a Reni Antley School of Dance #2.
2. Lease Contract dated January 28, 1988 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Baldwin
Cleaners, Inc., d/b/a Baldwin Cleaners.
3. Lease Contract dated July 23, 1991 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and
Baseball Fever, Inc., d/b/a Baseball Fever.
4. Lease Contract dated April 15, 1994 between Weingarten Realty Investors and
Baseball Fever, Inc., d/b/a Baseball Fever.
5. Lease Contract dated January 30, 1986 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Bill Douglas'
Shoe Box, Inc., d/b/a Bill Douglas' Shoe Box.
6. Lease Contract dated September 27, 1993 between Weingarten Realty Investors
and Bold Ventures, Inc., d/b/a Fajitas To Go.
7. Lease Contract dated April 17, 1991 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and
Brelian, Inc., d/b/a Haircuts Plus or TGF Haircutters.
8. Lease Contract dated March 4, 1992 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and
Brandon Bridwell and Dr. Jack L. Bridwell, d/b/a Sugarland Cellular.
9. Lease Contract dated December 7, 1992 between Property Commerce
Management Company, with the current Landlord being Weingarten Realty Investors,
and C C Partnership, d/b/a Yummies.
10. Lease Contract dated August 7, 1992 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Victor
Chau and Eileen P. Chau, d/b/a Unique Design.
11. Lease Contract dated August 5, 1991 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Ray
Chou, d/b/a A-1 Cleaners.
12. Lease Contract dated July 10, 1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and The
Clothestime, Inc.
G-34
<PAGE>
13. Lease Contract dated June 2, 1986 between Jayco Management Company, with
the current Landlord being Weingarten Realty Investors, and Cloth World of
Texas, Inc., d/b/a Cloth World.
14. Lease Contract dated November 6, 1992 between Property Commerce
Management Company, with the current Landlord being Weingarten Realty Investors,
and Colony Hair, Inc., d/b/a Colony Hair.
15. Lease Contract dated February 6, 1987 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Comparetto
Huff, Inc., d/b/a Comparetto Spa & Pool.
16. Lease Contract dated July 31, 1992 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and
Charles D. Crosley, d/b/a General Nutrition Corp.
17. Lease Contract dated August 6, 1991 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Steven
C. Davenport, d/b/a Colony Eye Center.
18. Lease Contract dated February 20, 1989 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Tony Deutsch,
d/b/a Colony Liquor.
19. Lease Contract dated November 30, 1990 between Property Commerce
Management Company, with the current Landlord being Weingarten Realty Investors,
and August Gary Farfalla, d/b/a First Colony T.V.
20. Lease Contract dated August 18, 1993 between Baker Land Company, with the
current Landlord being Weingarten Realty Investors, and First Heights Bank,
f.s.b., d/b/a First Heights Bank.
21. Lease Contract dated June 14, 1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Norman
L. Fong and Pei Ying Lee, d/b/a Bouquet Florist.
22. Lease Contract dated August 27, 1991 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Forum
Books, Inc., d/b/a Forum Books.
23. Lease Contract dated February 2, 1994 between Weingarten Realty Investors
and Great American Insurance Company, d/b/a American Spirit Insurance.
24. Lease Contract dated December 7, 1992 between Property Commerce
Management Company, with the current Landlord being Weingarten Realty Investors,
and Greater Houston, Inc., d/b/a Gary Greene Realtors.
G-35
<PAGE>
25. Lease Contract dated August 24, 1993 between WIHISR Limited Partnership,
with the current Landlord being Weingarten Realty Investors, and Reagan Grizzle,
D.D.S., d/b/a Dental Office.
26. Lease Contract dated October 11, 1988 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Jeffrey P.
Hauke, d/b/a Vet and Pet Shop.
27. Undated Lease Contract between WIHISR Two, with the current Landlord being
Weingarten Realty Investors, and Hometown America Mortgage Company.
28. Lease Contract dated October 7, 1982 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Hub
Distributing, Inc., d/b/a Millers Outpost, a portion of the leased premises
having been subleased to Petco Animal Supplies, Inc., effective May 6, 1992.
29. Lease Contract dated August 9, 1993 between WIHISR Limited Partnership,
with the current Landlord being Weingarten Realty Investors, and J.B. & J.H.,
Inc., d/b/a Champions Gym.
30. Lease Contract dated April 5, 1991 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Zahid
Qureshi and Shahida Qureshi, assigned to Lewand Development Corporation,
effective June 4, 1992, d/b/a Mail Box Etc., USA.
31. Lease Contract dated April 6, 1993 WIHISR Two, with the current Landlord
being Weingarten Realty Investors, and Wah Sum Lo, an individual, d/b/a Home
Laser Entertainment.
32. Lease Contract dated August 5, 1983 between Jayco Management Company, with
the current Landlord being Weingarten Realty Investors, and Los Tios, Inc.,
d/b/a Los Tios Mexican Restaurant.
33. Lease Contract dated October 5, 1988 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Loujon's of
Texas, Inc., d/b/a Loujon's Gifts.
34. Lease Contract dated June 28, 1994 between Weingarten Realty Investors and
Loujon's of Texas, Inc., d/b/a Loujon's Gifts.
35. Lease Contract dated November 28, 1984 between WIHISR II, with the current
Landlord being Weingarten Realty Investors, and Luby's Cafeteria's, Inc., d/b/a
Luby's.
36. Lease Contract dated August 24, 1993 between WIHISR Limited Partnership,
with the current Landlord being Weingarten Realty Investors, and Belinda Dillard
Mack and Debra Kubala, d/b/a Settings.
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<PAGE>
37. Lease Contract dated August 17,1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and
Patricia McMullin and Nancy Coates, d/b/a Drapery Land.
38. Lease Contract dated August 18, 1987 between WIHISR Limited Partnership,
with the current Landlord being Weingarten Realty Investors, and Michael Stores,
Inc., d/b/a Michael's.
39. Lease Contract dated November 4, 1992 between Property Commerce
Management Company, with the current Landlord being Weingarten Realty Investors,
and Stuart M. Miller and John Moore, d/b/a Colony Vacuum & Sewing Center.
40. Lease Contract dated September 28, 1993 between Weingarten Realty Investors
and Mita P. Mirani.
41. Lease Contract dated November 4, 1993 between Weingarten Realty Investors
and Denise L. Nachefski, d/b/a Etc.
42. Lease Contract dated July 26,1989 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Thai
Phuong Lan, assigned to Giao T. Nguyen, effective September 15, 1993, d/b/a
Nails Impression.
43. Lease Contract dated April 1, 1985 between Jayco Management Company, with
the current Landlord being Weingarten Realty Investors, and 3 Beall Brothers 3,
Inc., assigned to Palais Royal, Inc., d/b/a Palais Royal.
44. Lease Contract dated September 16, 1985 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Paper Pizazz,
Inc., d/b/a Card & Gift Shop.
45. Lease Contract dated November 12, 1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and David
D. Phillips, d/b/a David Phillips Insurance.
46. Lease Contract dated February 16, 1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Inventors, and Pizza
Hut of America, Inc., d/b/a Pizza Hut.
47. Lease Contract dated December 16, 1981 between WIHISR One, with the current
Landlord being Weingarten Realty Investors, and Randalls Food Markets, Inc.,
with the current tenant being Randalls Food & Drugs, Inc., successor by merger
to Randalls Food Markets, Inc., d/b/a Randall's.
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<PAGE>
48. Lease Contract dated April 26, 1989 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and R.M.
Shah Enterprises, Inc., d/b/a Fantastic Sam's.
49. Lease Contract dated June 3, 1994 between Weingarten Realty Investors and
Carol S. Robertson, d/b/a Baskin Robbins.
50. Lease Contract dated August 20, 1993 between WIHISR Limited Partnership,
with the current Landlord being Weingarten Realty Investors, and R.P. and A.D.
Enterprises, Inc., d/b/a Pennison's Sports Pub.
51. Lease Contract dated October 8, 1986 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Sally Beauty
Company, Inc., a Delaware corporation, d/b/a Sally Beauty Supply.
52. Lease Contract dated May 6, 1994 between Weingarten Realty Investors and
Nancy Schoen, d/b/a Antiques & Stuff.
53. Lease Contract dated July 14, 1987 between Jayco Management Company, with
the current Landlord being Weingarten Realty Investors, and Paul Shah and Bhavna
Shah, d/b/a Sugar Video.
54. Lease Contract dated January 25, 1983 between Baker Land Company, with the
current Landlord being Weingarten Realty Investors, and Shell Oil Company.
55. Lease Contract dated February 18, 1983 between Baker Land Properties
Incorporated, with the current Landlord being Weingarten Realty Investors, and
Mobil Oil Corp., assigned to Shell Oil Company.
56. Lease Contract dated February 11, 1994 between Weingarten Realty Investors
and Sherman, Clay & Co., d/b/a Lessons Plus.
57. Lease Contract dated August 10, 1988 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Ann G. Smith
and Ora E. Smith, d/b/a Country Touch.
58. Lease Contract dated June 28, 1993 between WIHISR Limited Partnership, with
the current Landlord being Weingarten Realty Investors, and Sporting Goods 4
All, Inc., d/b/a Play It Again Sports.
59. Lease Contract dated January 28, 1988 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Sugarland Let's
Travel, Inc., d/b/a Let's Travel.
60. Lease Contract dated April 17, 1989 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and
Greater Investment Corporation, assigned to Texas Postal Center, Inc., effective
April 2, 1992, d/b/a First Colony Postal Center.
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61. Lease Contract dated July 17, 1989 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Guang-
Yue Tho, d/b/a Suntan 1-Hour Foto.
62. Lease Contract dated August 23, 1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Phuong
Ngoc Tran, d/b/a Beau Ideals.
63. Lease Contract dated October 4, 1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and
Gregory Van Norton.
64. Lease Contract dated September 14, 1982 between WIHISR One, with the
current Landlord being Weingarten Realty Investors, and Walgreen Texas Co., with
the current tenant being Walgreen Co., successor by merger to Walgreen Texas
Co., d/b/a Walgreens.
65. Lease Contract dated May 10, 1988 between Jayco Management Company, with
the current Landlord being Weingarten Realty Investors, and Barbara Walpole and
Vance Walpole, d/b/a Barber Shop.
66. Lease Contract dated October 27, 1988 between Jayco Management Company,
with the current Landlord being Weingarten Realty Investors, and Jennifer Wang,
D.D.S., and Raymond Chui, D.D.S., d/b/a Dental Office.
67. Lease Contract dated June 21, 1990 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and James
F. Wedemeier, d/b/a Elegant Jewelers.
68. Lease Contract dated December 7, 1992 between Property Commerce
Management Company, with the current Landlord being Weingarten Realty Investors,
and Weight Loss Enterprises, Inc., d/b/a Quick Weight Loss Centers.
69. Lease Contract dated August 6, 1991 between Property Commerce Management
Company, with the current Landlord being Weingarten Realty Investors, and Gerald
D. Whaley, d/b/a Sandy's Hallmark.
70. Lease Contract dated April 30, 1993 between WIHISR Two, with the current
Landlord being Weingarten Realty Investors, and Ronald P. Wright, assigned to
Mary T. Whichard, effective February 1, 1994, d/b/a Farmers Insurance.
71. Lease Contract dated September 20, 1991 between Property Commerce
Management Company, with the current Landlord being Weingarten Realty Investors,
and Neda Whitehead, d/b/a Sweet Creations.
72. Lease Contract dated September 21, 1993 between Weingarten Realty Investors
and Gary L. Wilhide, d/b/a Tanning Salon.
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73. Lease Contract dated August 7,1985 between Jayco Management Company, with
the current Landlord being Weingarten Realty Investors, and Sai Hung Yu, d/b/a
Phoenix Chinese Restaurant.
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Attachment C To Deed of Trust,
Assignment of Rents,
Security Agreement and Financing Statement
Approved Encumbrances
EL DORADO CENTER
1. Restrictive Covenants as set out in Volume 332, Page 139 of the Map Records
and those recorded under Clerk's File Nos. G-479542 and H-792475 of the Real
Property Records of Harris County, Texas.
2. The easements as reflected by the recorded plat and as reflected by
instruments filed under Clerk's File Nos. F-456116 and F-772635 of the Real
Property Records of Harris County, Texas, including, without limitation, a 25
foot drainage easement located along the Southwesterly property line.
3. The easements as reflected by instrument recorded under Clerk's File No. J-
788637 of the Real Property Records of Harris County, Texas, including without
limitation: (i) easements 10 feet wide at four (4) separate locations along the
most Southerly and the Southeasterly property lines, together with unobstructed
aerial easements 10 feet wide, beginning from a plane 16 feet above the ground
and extending upward, located on both sides of and adjoining said 10 foot wide
easements granted to Houston Lighting & Power Company for the use and benefit of
all public utilities and (ii) an unobstructed aerial easement 11 feet 6 inches
wide beginning from a plane 16 feet above the ground and extending upward,
located Northerly of and adjoining a 10 foot wide easement located along a
portion of the most Southerly property line, granted to Houston Lighting & Power
Company. Permission to pave over and across said easements for parking, driveway
or walkway purposes as reflected by instrument recorded under Clerk's file No.
J-788637 of the Real Property Records of Harris County, Texas.
4. The easements as reflected by instrument recorded under Clerk's File No. K-
321159 of the Real Property Records of Harris County, Texas, including, without
limitation, a Southwestern Bell Telephone Company easement 5 feet wide located
along a portion of the most Southerly property line.
5. The easements as reflected by the plat recorded in Volume 332, Page 139 of
the Map Records of Harris County, Texas, including, without limitation, a water
line easement 6 feet in width located along the most Northwesterly property line
(El Dorado Blvd.).
6. The easements as reflected by the plat recorded in Volume 332, Page 139 of
the Map Records of Harris County, Texas, including, without limitation, a
sanitary
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sewer easement 19 feet in width located Southwesterly of and adjoining the
aforementioned water line easement.
7. The easements as reflected by the plat recorded in Volume 332, Page 139 of
the Map Records of Harris County, Texas, including, without limitation, a water
line easement 10 feet in width located along the interior and the Northeasterly
(Texas Highway 3) property lines.
8. All the oil, gas and other minerals, the royalties, bonuses, rentals and all
other rights in connection with same all of which are expressly excepted
herefrom and not insured hereunder, as same are set forth in instrument recorded
in Volume 7691, Page 250 of the Deed Records of Harris County, Texas. Surface
rights waived by instrument filed under Clerk's File No. G-193680 of the Real
Property Records of Harris County, Texas.
9. All oil, gas and other minerals lying in, on, under or that may be produced
from the above described property as reserved by Humble Oil and Refining Company
in Deed dated September 27, 1971, and filed for record on September 27, 1971
under County Clerk's File No. D-425019, Harris County, Texas; as corrected by
Deed dated October 11, 1971, and filed for record on October 11, 1971, under
County Clerk's File No. D-435609; the right to use the surface of the above
described property for exploration and development of such mineral interests
having been waived by instrument dated December 16, 1974, and filed for record
under County Clerk's File No. E-327644, Harris County, Texas.
10. Building Set Back Line 10 feet in width located along the interior,
Southeasterly and Southwesterly and most Southerly property lines as reflected
by the plat recorded in Volume 332, Page 139 of the Map Records of Harris
County, Texas and by instrument recorded under Clerk's File No. G-479542 of the
Real Property Records of Harris County, Texas.
11. Building Set Back Line 40 feet in width located along the Northwesterly (El
Dorado Blvd.) and the Northeasterly (Texas Highway 3) property lines as
reflected by the plat recorded in Volume 332, Page 139 of the Map Records of
Harris County, Texas and by instrument recorded under Clerk's file No. G-479542
of the Real Property Records of Harris County, Texas.
12. All matters which would be disclosed by a complete and accurate survey of
the Subject Property including, without limitation, those matters shown on that
certain survey dated May 16, 1986 (revised May 4, 1994), prepared by Hugh W.
Clarkson, Registered Professional Land Surveyor No. 4113, and that certain
survey dated August 12, 1983, prepared by Rodolfo R. Jasso, Jr., Registered
Professional Land Surveyor No. 4017.
13. The terms, conditions and stipulations of the Lease Agreements, amendments
and supplements thereto, reflected by instruments recorded under Clerk's File
Nos. K-690016, K-698765, M-332159 and N-192966 of the Real Property Records of
Harris County, Texas.
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14. The terms, conditions, provisions and stipulations of Ordinance #82-1010 of
the City of Houston enacted June 22, 1982 pertaining to platting and replatting
of real property and the establishment of building set back lines within such
boundaries.
15. Subject Property is located in Bayfield Public Utility District, the
boundaries of which are set forth and defined by Form and/or Plat recorded under
Clerk's File No. H-344356 and being amended under Clerk's File No. K-223642 of
the Real Property Records of Harris County, Texas.
16. Rights of tenants in possession under existing Leases.
NORTHWAY CENTER
1. Pipeline right-of-way granted to The Texas Pipe Line Company in instrument
recorded in Volume 770, Page 365, Harris County Deed Records; assigned to Texas-
New Mexico Pipe Line Company in instrument recorded in Volume 1063, Page 339,
Harris County Deed Records; and limited to that certain 30 foot strip described
in instrument filed under Clerk's File No. E-890914 of the Real Property
Records; and being partially released to a portion as described in instrument
recorded under Clerk's File No. J-726839 of the Real Property Records of Harris
County, Texas.
2. Easement dated May 14, 1976, filed for record June 30, 1976 under Clerk's
File No. E-808280, from Deauville/Arlen Venture VIII to Houston Lighting and
Power Company, over a tract of 902,199 square feet of which subject property is
a part and as shown on sketch attached thereto.
3. Water main easement dated July 7, 1976, filed August 27, 1976, under Clerk's
File No. E-873119, from Deauville Corporation, acting in behalf of
Deauville/Arlen Venture III, to the City of Houston, as described therein.
Permission to build over city easement granted under Clerk's File No. J-244555
as to the above mentioned 10 foot easement.
4. Sanitary sewer easement dated July 7, 1976, filed October 18, 1976, under
Clerk's File No. E-925013, from Deauville Corporation, acting in behalf of
Deauville/Arlen Venture VIII to the City of Houston, as described therein.
5. By instrument dated July 27, 1976, f1led October 29, 1976, under Clerk's
File No. E-937468, Deauville/Arlen Venture VIII was granted permission to build
over City easement by the City of Houston for driveways and parking areas, over
water main and sanitary sewer easement, as described therein.
6. The rights of the public, if any, to the use of the 30 foot wide private
access road along the most Westerly corner of subject property as recorded under
Clerk's File No. F-082857 of the Real Property Records of Harris County, Texas.
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<PAGE>
7. The easements as reflected by instrument filed under Clerk's File
No. J-685254 of the Real Property Records of Harris County, Texas, including,
without limitation, an easement 5 feet wide along the Westerly and Southwesterly
property line, and an unobstructed aerial easement 10 feet wide from a plane 16
feet above the ground upward, located adjacent thereto for the use of public
utilities.
8. A11 easements as shown on the recorded plat in Volume 249, Page 83 of the
Map Records and corrected in Volume 251, Page 61 of the Map Records of Harris
County, Texas.
9. Permission to build over city easements as granted under Clerk's File No.
G620978 and under Clerk's File Nos. G-245492, G-422582 and K-775624, all of the
Real Property Records of Harris County, Texas.
10. Consent to encroachment of easements granted under Clerk's File N. G-187372
and being more particularly described therein.
11. All the oil, gas and other minerals, the royalties, bonuses, rentals and all
other rights in connection with same all of which are expressly excepted
herefrom and not insured hereunder, as same are set forth in instrument recorded
in Volume 2196, Page 90 of the Deed Records of Harris County, Texas. Surface
rights waived therein.
12. All building set back lines as shown on the recorded plat in Volume 249,
Page 83 and corrected in Volume 251, Page 61 of the Map Records of Harris
County, Texas.
13. The terms, conditions and stipulations of Lease Agreements, amendments and
supplements thereto, as evidenced by instrument filed under Clerk's File Nos. F-
417094, G-044053, H-025590 and K-650809 and J-041605 all of the Real Property
Records of Harris County, Texas.
14. The terms, conditions and stipulations as set forth in Subordination,
Non-Disturbance and Attornment Agreement f1led for record in the office of the
County Clerk of Harris County, Texas on December 4, 1986, under Clerk's File No.
K-863947 of the Real Property Records, affecting that certain Lease dated
December 7, 1977, recorded in the Official Public Records of Real Property of
Harris County, Texas, under Clerk's File No. F-417094.
15. All matters which would be disclosed by a complete and accurate survey of
the Subject Property including, without limitation, those matters shown on that
certain survey dated September 22, 1986 (updated June 1, 1994, revised
certification July 19,1994), prepared by George Collison, Registered
Professional Land Surveyor No. 4461.
16. Restrictive Covenants as set out in Volume 251, Page 61 of the Map Records
of Harris County, Texas, and any restrictions established by the plat.
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<PAGE>
17. The easements as reflected by instrument filed under Clerk's File
No. E-925013 of the Real Property Records of Harris County, Texas, including,
without limitation, a sanitary sewer easement 15 feet wide along the
Northeasterly property line.
18. Permission to build over city easement as granted under Clerk's File No.
G245492 of the Real Property Records of Harris County, Texas.
19. Building Set Back Line 10 feet in width along the Northeasterly property
lien and also a 10 foot building set back line located Westerly of and adjacent
to Deauville Plaza, as shown the recorded plat.
20. Rights of tenants in possession under existing Leases.
WILLLAMS TRACE CENTER
1. Restrictive Covenants as set forth in Volume 27, Page 12 of the Map/Plat
Records and in Slide No. 759/A of the Map/Plat Records, The Master First Colony
Restrictions in Volume 1059, Page 152, amended in Volume 1077, Page 448, both of
the Deed Records of Fort Bend County, Texas, and Volume 1389, Page 112, Volume
1672, Page 769, Volume 1872, Page 1684, corrected in Volume 1899, Page 231,
Volume 2328, Page 1733, Volume 2426, Page 1449 and rerecorded in Volume 2433,
Page 2395, and amended in Volume 2561, Page 597, all in the Off1cial Records of
Fort Bend County, Texas, amended in that certain Supplemental Amendment and
Declaration recorded under Clerk's File No. 9355327 and in that certain Third
Amendment to Declaration recorded under Clerk's File No. 9355330 in the Official
Records of Fort Bend County, Texas.
2. The easements as set forth in the plat recorded in Volume 27, Page 12 of the
Plat Records of Fort Bend County, Texas, including, without limitation, a
sanitary sewer easement 5 feet wide along the most Westerly property line
(Williams Trace).
3. The easements as set forth in the plat recorded in Volume 27, Page 12 of the
Plat Records of Fort Bend County, Texas, including, without limitation, a
utility easement 16 feet wide along the Easterly property line and adjacent to
and adjoining the Fort Bend County Levee Improvement District tract.
4. The easements as reflected by instrument recorded in Volume 894, Page 627 of
the Deed Records of Fort Bend County, Texas, including, without limitation, an
unobstructed easement 16 feet wide, the location of which is shown by a cross
hatched area on Sketch No. 79-537, and an unobstructed aerial easement 5 feet 6
inches wide located Westerly of and adjoining the above described 16 feet wide
easement.
5. The easements as recorded in Volume 27, Page 12 of the Map Records of Fort
Bend County, Texas, including, without limitation, an 8 foot wide dedicated
utility easement being the Northerly and Northeasterly one-half of a 16 foot
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<PAGE>
utility easement centered on the Southerly boundary line of the 14.321 acre
Commercial Reserve of Colony Grant, Section One.
6. The easements as granted to Houston Lighting & Power Company by instrument
recorded in Volume 1082, Page 110 of the Deed Records of Fort Bend County,
Texas, including, without limitation, an unobstructed aerial easement 7 feet
wide located Northerly, Northeasterly and adjacent to the above referenced 8
foot wide utility easement.
7. The easements as set out in Volume 1086, Page 558 of the Deed Records of
Fort Bend County, Texas, including, without limitation, an easement 10 feet wide
located on a portion of the most Westerly South property line, together with an
unobstructed aerial easement 10 feet wide from a plane 15 feet above the ground,
located adjacent thereto (see sketch no. W-82-4348), granted to Houston Lighting
& Power Company.
8. A water line easement located along the Northerly (State Highway 6), Easterly
and Southerly perimeters of the subject property, granted to Fort Bend County
Municipal Utility District No. 12, by instrument recorded in Volume 1129, Page
18 of the Official Records of Fort Bend County, Texas.
9. The easements as reflected by that certain instrument recorded in Volume
1129, Page 25 of the Official Records of Fort Bend County, Texas, including,
without limitation, a sanitary sewer easement 10 feet wide traversing a
Northwesterly portion of the subject property, granted to Fort Bend County
Municipal Utility District No. 12.
10. A cable television easement for a nonexclusive right-of-way in favor of
Ares, Inc. across all dedicated utility easements shown in the recorded
subdivision plats (which were recorded in Volume 27, Page 12 and Volume 27, Page
13 of the Plat Records of Fort Bend County), by instrument recorded in Volume
990, Page 292 of the Deed Records of Fort Bend County, Texas and assigned to
Prime Cable of Ft. Bend L.P. (a Delaware limited partnership) by Easement Deed
dated October 28, 1986, recorded in Volume 1903, Page 1722 of the Official
Records of Fort Bend County, Texas.
11. The easements as reflected by that certain instrument recorded in Volume
729, Page 121 of the Deed Records of Fort Bend County, Texas, including, without
limitation, a utility easement 10 feet wide along the most Easterly property
line (Settlers Way Blvd.) granted to the County of Fort Bend.
12. The easements as reflected by the plat recorded in Volume 27, Page 13 of the
Plat Records of Fort Bend County, Texas, including, without limitation, a storm
sewer easement 20 feet wide along the Westerly portion of the South property
line (Flintwood Drive).
13. The easements as reflected by the plats recorded in Slide No. 759/A and
Volume 27, Page 13 of the Plat Records of Fort Bend County, Texas, including,
without
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<PAGE>
limitation, a sanitary sewer easement 10 feet wide and 10 feet in length located
along a portion of the Southwesterly property line (Flintwood Drive).
14. The easements as reflected by the plat records recorded in Slide No. 759/A
of the Plat Records of Fort Bend County, Texas, including, without limitation,
two flushing valve easements 7 feet wide and 10 feet in length located at 2
locations on the Southwesterly property line (Flintwood Drive).
15. The easements as reflected by the plat recorded in Slide No. 759/A of the
Plat Records of Fort Bend County, Texas, including, without limitation, a storm
sewer easement 20 feet wide traversing a Northerly portion of the subject
property.
16. The easements as set out in Volume 1707, Page 435 (F.B.C.C. File
No. 8523709) of the Official Records of Fort Bend County, Texas, including,
without limitation, two 10-feet wide easements, both located along the
Southwesterly property line, as shown on Sketch No. W-85-102, together with
unobstructed aerial easements 10-feet wide, from a plane 16-feet above the
ground level and upward, located on both sides of and adjoining said 10-feet
wide easements granted to Houston Lighting & Power Company; said easements
partially released by that certain Release of Easement dated December 13, 1993,
recorded in Volume 2624, Page 2327 of the Official Public Records of Fort Bend
County, Texas.
17. The easements as set out in Volume 1880, Page 1915 (F.B.C.C. File
No. 8646459) of the Official Records of Fort Bend County, Texas, including,
without limitation, an easement 10 feet wide located along a Westerly portion of
the Southwest property line (Flintwood Drive), as shown on Sketch No. W-86-163,
together with an unobstructed aerial easement 10 feet wide, beginning at a plane
16 feet above the ground and extending upward, located on both sides and
adjoining said 10 feet wide easement, granted to Houston Lighting & Power
Company.
18. Reciprocal Easement Agreement and all terms, conditions and provisions
contained therein, as set out by instrument recorded in Volume 2092, Page 2019
of the Official Records of Fort Bend County, Texas.
19. A 1/32nd non-participating royalty interest in and to all oil, gas and other
minerals on, in, under or that may be produced from the subject property is
excepted herefrom as the same is set forth in instrument recorded in Volume 236,
Page 9 of the Deed Records of Fort Bend County, Texas.
20. A 50% non-participating royalty interest in and to all oil, gas and other
minerals on, in, under or that may be produced from the subject property is
excepted herefrom as the same is set forth in instrument recorded in Volume 607,
Page 101 of the Deed Records of Fort Bend County, Texas.
21. All the oil, gas and other minerals, the royalties, bonuses, rentals and all
other rights in connection with the same all of which are expressly excepted
herefrom and not insured hereunder, as same are set forth in instrument recorded
in
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Volume 1561, Page 380 of the Deed Records of Fort Bend County, Texas. Surface
rights waived therein. The transportation lien described there has been waived.
22. General, Special, Neighborhood and Tract Assessments payable to First Colony
Community Service Association, Inc., being a continuing lien upon the subject
property, as reserved under Volume 1059, Page 152 of the Deed Records, Fort Bend
County, Texas.
23. Building Set Back Line, 35 feet in width, along the Northerly property line
(State Highway 6), as reflected by the plats recorded in Volume 27, Page 12,
Volume 27, Page 13 and Slide No. 759/A of the Plat Records of Fort Bend County,
Texas.
24. Building Set Back Line, 35 feet in width, along the most Easterly property
line (Settlers Way Boulevard), as reflected by the plats recorded in Volume 27,
Page 13 and Slide No. 759/A of the Plat Records of Fort Bend County, Texas.
25. Building Set Back Line, 35 feet in width, along the Westerly property line
(Williams Trace Boulevard), as reflected by the plat recorded in Volume 27, Page
12 of the Plat Records of Fort Bend County, Texas.
26. Building Set Back Line, 25 feet in width, along the Southwesterly property
line (Flintrock Drive), as reflected by the plats recorded in Volume 27, Page 13
and Slide No. 759/A of the Plat Records of Fort Bend County, Texas.
27. The terms, conditions and stipulations of the lease agreements referred to
in the following instruments:
a. Memorandum of Lease dated September 14, 1982, executed by and between Wihisr
One, Lessor, and Walgreen Texas Co., Lessee, recorded in Volume 1084, Page 332
of the Deed Records of Fort Bend County, Texas, and the Assignment of Lease
dated July 27, 1984, to be effective August 28, 1984 from Walgreen Texas Co. to
Walgreen Co., recorded in Volume 1519, Page 367 of the Official Records of Fort
Bend County, Texas.
b. Memorandum of Lease executed by and between Wihsr One, Lessor, and Randall's
Food Markets, Inc., Lessee, recorded in Volume 1916, Page 1578 of the Official
Records of Fort Bend County, Texas.
c. Memorandum of Lease dated July 10, 1990, executed by and between Property
Commerce, Lessor, and The Clothestime, Inc., Lessee recorded in Volume 2253,
Page 210 of the Official Records of Fort Bend County, Texas.
d. Memorandum of Lease dated November 28,1984 executed by and between WIHISR
II, a Texas joint venture, Lessor, and Luby's Cafeterias, Inc., a
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Texas corporation, Lessee, recorded in Volume 1573, Page 809 of the Official
Records of Fort Bend County, Texas.
28. Terms, conditions and stipulations (including but not limited to, the
easement) as set forth in the Declaration between Dayton-Hudson Corporation,
d/b/a Target Stores, and WIHISR, II by instruments recorded in Volume 1448, Page
441, Volume 1920, Page 260 and Volume 2092, Page 2097 of the Official Records of
Fort Bend County, Texas.
29. Terms, conditions and stipulations set forth in that certain Temporary
Drainage and Access Easement Agreement dated August 24, 1993, by and between
WIHISR Limited Partnership, a Texas limited partnership, and George H. Woodley,
Jr., d/b/a First Colony Veterinary Clinic and First Colony Kennels, filed for
record August 25, 1993, under Clerk's File No. 9355325 in the Official Records
of Fort Bend County, Texas.
30. Terms, conditions and stipulations set forth in that certain Landscape
Easement, between WIHISR Limited Partnership and First Colony Community Services
Association, Inc., filed for record August 25, 1993, under Clerk's File No.
9355326 in the Official Records of Fort Bend County, Texas.
31. Terms, conditions and stipulations set forth in that certain Access Storm
Sewer and Water Line Easement and Agreement dated August 24, 1993, by and
between WIHISR Limited Partnership, a Texas limited partnership, and Baker Land
Company, a Texas corporation, filed for record August 25, 1993, under Clerk's
File No. 9355328 in the Official Records of Fort Bend County, Texas.
32. Terms conditions and stipulations set forth in that certain Access Storm
Sewer and Water Line Easement and Agreement dated August 24, 1993, by and
between WIHISR Limited Partnership, a Texas limited partnership and Baker Land
Company a Texas corporation, filed for record August 25, 1993, under Clerk's
File no. 9355329 in the Official Records of Fort Bend County, Texas.
33. All matters which would be disclosed by a complete and accurate survey of
the Subject Property including, without limitation, those matters shown on that
certain survey dated March 9, 1993 (revised May 20, 1994), prepared by R. S.
McClendon, Registered Professional Land Surveyor No. 4079 and that certain
survey dated March 4, 1993 (revised May 20, 1994), prepared by R. S. McClendon,
Registered Professional Land Surveyor No. 4079.
34. Restrictions recorded in Volume 1874, Page 0014 and amended in Volume 2109,
Page 2304, both of the Official Records of Fort Bend County, Texas.
35. All the oil, gas and other minerals, the royalties, bonuses, rentals and
all other rights in connection with same all of which are expressly excepted
herefrom and not insured hereunder, as same are set forth in instrument recorded
under Clerk's File No. 9373969 of the Official Public Records of Fort Bend
County, Texas.
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36. Waiver of surface rights as set forth by instrument recorded in Volume 2561,
Page 706 of the Official Records of Fort Bend County, Texas.
37. Building Set Back Line of 35-feet in width located along the Northerly
property lines, (State Highway 6) as set out on plat of Colony Grant Section
One, recorded in Volume 27, Page 12 of the Plat Records of Fort Bend County,
Texas, and as set out on the plat of Settlers Park, Section 3, recorded in
Volume 27, Page 13 of the Plat Records of Fort Bend County, Texas.
38. Building Set Back Line of 35-feet in width along the Westerly property line
(Williams Tract Boulevard) as set out on plat of Colony Grant Section One,
recorded in Volume 27, Page 12 of the Plat Records of Fort Bend County, Texas
and along the Easterly property line (Settlers Way Boulevard) as set out on plat
of Settlers Park, Section 3, recorded in Volume 27, Page 13 of the Plat Records
of Fort Bend County, Texas.
39. Terms, conditions and stipulations contained in that certain Memorandum of
Lease, dated August 18, 1993, executed by and between Baker Land Company, as
Landlord, and First Heights Bank, FSB, a Federal Savings Bank, as Tenant, as
evidenced by instrument recorded in Volume 2559, Page 2415 of the Official
Records of Fort Bend County, Texas.
40. Terms, conditions and stipulations contained in that certain Memorandum of
Lease, dated January 25, 1983 executed by and between Baker Land Company, as
Lessor, and Shell Oil Company, as Lessee, as evidenced by and set out in
instrument recorded Volume 1156, Page 491 of the Official Records of Fort Bend
County, Texas.
41. Terms, conditions and stipulations contained in that certain Memorandum of
Lease dated February 18, 1983, executed by and between Baker Land Company, as
Lessor, and Mobil Oil Corporation, as Lessee, as evidenced by and set out in
instrument recorded in Volume 1149, Page 878, of the Official Records of Fort
Bend County, Texas; and assigned to Shell Oil Company by instrument dated May 6,
1992, recorded in Volume 2403, Page 1045 of the Official Records of Fort Bend
County, Texas.
42. General, Special, Neighborhood and Tract Assessments payable to First Colony
Community Services Association, Inc., being a continuing lien upon subject
property as reserved under Volume 1059, Page 152 of the Deed Records, amended in
Volume 1077, Page 448, of the Deed Records, Volume 1389, Page 112 of the
Official Records and Volume 1672, Page 769 of the Official Records, and Volume
1872, Page 1684, of the Official Records, corrected in Volume 1899, Page 231, of
the Official Records and Volume 2328, Page 1733, and Volume 2426, Page 1449, re-
recorded in Volume 2433, Page 2395, and amended in Volume 2561, Page 597, all of
the Official Records of Fort Bend County, Texas.
43. Building Set Back Line of 40-feet in width located along Williams Trace
Boulevard, State Highway No.6, and Settlers Way Boulevard, as set forth in the
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Williams Trace Shopping Center Supplemental Amendment and Declaration recorded
in Volume 2561, Page 597, of the Official Records of Fort Bend County, Texas.
44. Building Set Back Line 10-feet in width located along the rear property line
as set forth in instrument recorded in Volume 2561, Page 597 of the Official
Records of Fort Bend County, Texas.
45. The easements as reflected by that certain instrument recorded in Volume
1129, Page 18, of the Official Records of Fort Bend County, Texas, including,
without limitation, a water line easement 10-feet in width located along the
Northerly property line (State Highway No. 6) granted to Fort Bend County
Municipal Utility District No. 12.
46. The easements as reflected by that certain instrument dated September
26, 1990, recorded under Clerk's File No. 9373967 of the Official Records of
Fort Bend County, Texas including, without limitation, a 10-foot wide
underground easement traversing the Northeast part of Tract III, granted to
Sugar Land Telephone Company.
47. Landscape Easement dated November 4, 1993, recorded under Clerk's File
No. 9373966 of the Official Records of Fort Bend County, Texas, by and between
Baker Land Company, a Texas corporation and First Colony Community Services
Association, Inc., a Texas nonprofit corporation.
48. All matters which would be disclosed by a complete and accurate survey of
the Subject Property including, without limitation, those matters shown on those
certain surveys dated (i) September 24,1993; (ii) October 8, 1993; (iii)
September 25, 1993; and (iv) March 9, 1993 (revised May 20, 1994), all prepared
by R. S. McClendon, Registered Professional Land Surveyor No. 4079.
49. Rights of tenants in possession under existing Leases.
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Exhibit H To Note
Purchase Agreement
AGREEMENT OF GUARANTY
[date determined by (S)(S)4.12 or 9.12 of the Note Purchase Agreement]
[names of (i) the Purchasers or (ii) the Holders
as of the date of this Agreement]
c/o American General Corporation
2929 Allen Parkway
Houston, Texas 77019
Ladies and Gentlemen:
Weingarten Realty Investors, a Texas real estate investment trust (the "Trust"),
has entered into a Note Purchase Agreement dated as of April 1, 1994 (the "Note
Purchase Agreement"), with The Variable Annuity Life Insurance Company and
American General Life Insurance Company. The provisions of (S)4.12 of the Note
Purchase Agreement require each of the Current Subsidiaries (other than
Weingarten Properties Trust) to execute an Agreement of Guaranty substantially
in the form hereof, and the provisions of (S)9.12 of the Note Purchase Agreement
require each Person that becomes a Wholly-Owned Subsidiary after the Closing
Date to execute an Agreement of Guaranty substantially in the form hereof.
In consideration of credit and financial accommodations extended or to be
extended to the Trust pursuant to the Note Purchase Agreement, [name of
Subsidiary], a [state and form of organization of Subsidiary] ("Guarantor"),
hereby agrees with each of you, and with each other Holder from time to time, as
follows:
(S)1 Nature and Scope of Guaranty.
(S)1.1 Guaranty of Payment. Guarantor irrevocably and unconditionally
guarantees to each of the Beneficiaries, and to such Beneficiary's successors
and assigns, the full and punctual payment when due of each of the Guaranteed
Obligations. Guarantor agrees that Guarantor, the Trust, and the other
Guaranteeing Subsidiaries are jointly and severally liable to the Beneficiaries
for each of the Guaranteed Obligations and that this Agreement shall remain in
full force and effect until Guarantor shall have been released from liability
under this Agreement pursuant to (S)15 of the Note Purchase Agreement. Guarantor
acknowledges that Guarantor is a Wholly-Owned Subsidiary and that the f1nancial
accommodations to be made to the Trust pursuant to the Note Purchase Agreement
will, directly or indirectly, benefit Guarantor.
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(S)1.2 Definitions.
(a) Certain Defined Terms. As used herein, the following capitalized terms shall
have the following meanings:
Agreement means this Agreement of Guaranty.
Beneficiaries means:
(a) the Persons who or which at any time are or were the
Holders; and
(b) the Indemnified Parties.
Debtor Laws means federal or state bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer, fraudulent conveyance, preferential transfer or
similar laws affecting the enforcement of creditors' rights.
Guaranteed Obligations means the amounts due and payable, or to become due and
payable, by the Trust (or any successor entity pursuant to (S)9.11 of the Note
Purchase Agreement or otherwise) to any Beneficiary pursuant to any of the Notes
or any of the other Basic Documents.
Other Guaranties means the Guaranty Agreements, other than this Agreement.
(b) Other Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings set forth therefor in the Note Purchase Agreement.
(S)1.3 No Offset. None of the Guaranteed Obligations shall be reduced,
discharged or released by reason of any existing or future right of offset,
claim or defense of the Trust against any of the Beneficiaries, whether such
right of offset, claim or defense arises in connection with any of the
Guaranteed Obligations (or any of the transactions creating any of the
Guaranteed Obligations) or otherwise.
(S)1.4 Payment by Guarantor. If any of the Guaranteed Obligations shall not be
fully and punctually paid when due, Guarantor shall, immediately upon demand by
the Beneficiary to whom or which such Guaranteed Obligation is owed, and without
presentment or protest (which are hereby waived), pay such Guaranteed Obligation
to such Beneficially in lawful money of the United States of America. If such
Beneficiary is entitled to the benefits of (S)12.2 of the Note Purchase
Agreement, then such Guaranteed Obligation shall be paid in the manner for
making payments to such Beneficiary that is specified in or pursuant to that
section. If such Beneficiary is not entitled to those benefits, then such
Guaranteed Obligation shall be paid to such Beneficiary in such commercially
reasonable manner as such Beneficiary shall have specified to Guarantor in
writing. Any demand for payment of such Guaranteed
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Obligation (i) may be made at any time after such Guaranteed Obligation shall
have become due and (ii) shall be effective when delivered in accordance with
3.2 hereof.
(S)1.5 No Duty to Pursue Others. Guarantor, to the fullest extent permitted
by law, hereby waives any right that Guarantor may have to require any
Beneficiary, in order to enforce this Agreement against Guarantor, first to (i)
institute suit or exhaust such Beneficiary's rights against the Trust or any
other Person now or hereafter liable to pay any of the Guaranteed Obligations,
(ii) enforce such Beneficiary's rights, if any, under the Mortgage or against
any other security that shall have been given to secure payment of any of the
Guaranteed Obligations, (iii) enforce such Beneficiary's rights against any
other guarantors of any of the Guaranteed Obligations, (iv) join the Trust, or
any other Persons now or hereafter liable to pay any of the Guaranteed
Obligations, in any action to enforce this Agreement, or (v) resort to any other
means of obtaining payment of any of the Guaranteed Obligations.
(S)1.6 Waiver of Notices. Guarantor agrees to the provisions of the Basic
Documents and, except as specifically set forth in this Agreement and to the
fullest extent permitted by law, hereby waives notice of (i) acceptance of this
Agreement, (ii) any amendment, modification, extension of the time for payment
or rearrangement of any of the Notes, (iii) any amendment, modification or
restatement of any of the other Basic Documents or any of the Other Guaranties,
(iv) the occurrence of any Potential Event of Default or Event of Default, (v)
intention to accelerate, or acceleration of, the maturity of any Note, (vi) any
Beneficiary's transfer or disposition of such Beneficiary's right to receive or
collect any of the Guaranteed Obligations, (vii) the sale or foreclosure (or
posting or advertising for sale or foreclosure) of any of the Mortgaged
Property, (viii) protest, non-payment or default by the Trust, or (ix) any other
action at any time taken or omitted by any Beneficiary.
(S)1.7 Nature of Guaranty. The guaranty made in (S)1.1 hereof is an
irrevocable and unconditional guaranty of payment and not a guaranty of
collection. Such guaranty may not be revoked by Guarantor and shall continue to
be effective with respect to any Guaranteed Obligation that the Trust becomes
liable to pay after any attempted revocation by Guarantor. The fact that any of
the Guaranteed Obligations may be increased, reduced or paid in full shall not
release, discharge or reduce the liability of Guarantor with respect to any
other Guaranteed Obligation, whether the liability of the Trust to pay such
other Guaranteed Obligation was incurred before, or is incurred after, the time
of such increase, reduction or payment. Such guaranty shall not be discharged by
the assignment or negotiation of any right to receive or collect any of the
Guaranteed Obligations. Guarantor guarantees that the Guaranteed Obligations
will be paid strictly in accordance with the terms of the several Basic
Documents.
(S)1.8 Payment of Expenses. If Guarantor fails to timely perform any
provision of this Agreement, Guarantor shall pay to each Beneficiary all costs
and expenses (including court costs and reasonable attorneys' fees) incurred by
such Beneficiary in the enforcement of this Agreement or the preservation of the
rights of any of the Beneficiaries hereunder. The covenant contained in this
(S)1.8 shall survive the payment of any of the Guaranteed Obligations.
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<PAGE>
(S)1.9 Effect of Bankruptcy. If, pursuant to any Debtor Laws, or any
judgment, order or decision thereunder, any of the Beneficiaries is required to
refund any payment, or part thereof, received by such Beneficiary in
satisfaction of any of the Guaranteed Obligations, then this Agreement shall
remain in full force and effect with respect to such previously satisfied
Guaranteed Obligation and with respect to each other Guaranteed Obligation. The
covenant contained in this (S)1.9 shall survive the payment of any of the
Guaranteed Obligations.
(S)1.10 Due Date of Obligations. For purposes of this Agreement, each of the
Guaranteed Obligations shall be due on the date on which such Guaranteed
Obligation becomes due and payable, or is otherwise required to be paid,
pursuant to the Basic Document that evidences or creates the liability of the
Trust to pay such Guaranteed Obligation.
(S)2 Events and Circumstances Not Affecting Guarantor's Liability.
Guarantor agrees, to the fullest extent permitted by law, that Guarantor's
liability under this Agreement shall not be released, diminished, impaired,
reduced or otherwise affected by any of the following, and, to the fullest
extent permitted by law, Guarantor waives any common law, equitable or statutory
right (including, without limitation, rights to notice) that Guarantor might
otherwise have as a result of or in connection with any of the following:
(a) any renewal of liability to pay, any extension of the time for payment of,
or any rearrangement of the terms for paying, any of the Guaranteed Obligations;
(b) any modification, amendment or restatement of any of the Basic Documents or
any of the Other Guaranties;
(c) any indulgence, forbearance or compromise that might be granted by any
Beneficiary to the Trust or to any other guarantor of any of the Guaranteed
Obligations;
(d) the insolvency, bankruptcy, liquidation, disability, dissolution or lack of
power of the Trust or any other Person now or hereafter liable for the payment
of any of the Guaranteed Obligations;
(e) the release of any Subsidiary (other than Guarantor) from liability under
any Guaranty Agreement pursuant to (S)15 of the Note Purchase Agreement or
otherwise;
(f) the invalidity, illegality or unenforceability of any term of any of the
Basic Documents for any reason, including, without limitation, the fact that (i)
any of the Guaranteed Obligations exceeds the amount permitted by applicable
law, (ii) the creation of the liability to pay any of the Guaranteed Obligations
is ultra vires, (iii) the officers of the Trust who executed any of the Basic
Documents had no actual authority to do so, (iv) the contract of the Trust to
pay any of the Guaranteed Obligations violates applicable usury laws, (v) the
Trust has valid defenses or claims (whether at
H-4
<PAGE>
law, in equity or by agreement) that render the Trust's agreement to pay one or
more of the Guaranteed Obligations wholly or partially unenforceable, (vi) the
Trust's agreement to pay one or more of the Guaranteed Obligations (or the
execution, delivery or performance of any Transaction Document) is illegal, or
(vii) any of the Transaction Documents has been forged or is otherwise irregular
or not genuine or authentic;
(g) any full or partial release of the liability of the Trust or any other
Person to pay any of the Guaranteed Obligations (other than a release of
Guarantor pursuant to (S)15 of the Note Purchase Agreement), it being
acknowledged and agreed by Guarantor that Guarantor may be required to pay the
Guaranteed Obligations in full without assistance or support of any other Person
and that Guarantor has not been induced to enter into this Agreement on the
basis of any agreement that any of the Beneficiaries will look to other Persons
to pay the Guaranteed Obligations;
(h) the taking or accepting of any other security, collateral, guaranty or other
assurance of payment of any of the Guaranteed Obligations;
(i) any release, surrender, exchange, deterioration, waste, loss or impairment
of any of the Mortgaged Property or any other collateral or security for the
payment of any of the Guaranteed Obligations;
(j) the failure of any Beneficiary to exercise diligence or reasonable care in
the preservation, protection, sale or other handling or treatment of all or any
part of the Mortgaged Property or of such other collateral or security;
(k) the fact that any Lien intended to be created as security for the payment of
any of the Guaranteed Obligations shall not have been created or perfected, or
shall prove to be unenforceable or subordinate to any other Lien, it being
recognized and agreed by Guarantor that Guarantor is not entering into this
Agreement in reliance on, or in contemplation of the benefits of, the validity,
enforceability or priority of such a Lien;
(1) the reorganization, merger or consolidation of the Trust into or with any
other Person;
(m) any payment by the Trust to any Beneficiary is held to constitute a
preference under any Debtor Laws, or any of the Beneficiaries is required to
refund such payment to the Trust or any other Person; or
(n) any other action at any time taken or omitted (other than a release of
Guarantor pursuant to (S)15 of the Note Purchase Agreement).
(S)3 Miscellaneous.
(S)3.1 No Waiver. No Beneficiary's failure to exercise, and no Beneficiary's
delay in exercising, any right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right. The rights of the
Beneficiaries hereunder shall be in addition to all
H-5
<PAGE>
other rights provided by law. No modification or waiver of any provision of this
Agreement, nor consent to departure therefrom, shall be effective unless it is
in writing and signed by each of the Holders, and no such consent or waiver
shall extend beyond the particular case and purpose involved. No notice or
demand given in any case shall constitute a waiver of the right to take other
action in the same, similar or other instances without such notice or demand.
(S)3.2 Notices. Except as otherwise provided in this Agreement, notices and
other communications pursuant to this Agreement shall be in writing and shall be
delivered by facsimile transmission (confirmed in writing by certified mail,
return receipt requested, postage prepaid), (i) if to any Purchaser, to such
Purchaser's facsimile transmission number set forth in Schedule I to the Note
Purchase Agreement (to such other facsimile transmission number as such
Purchaser shall have furnished to Guarantor in writing for purposes of receiving
such notices or other communications), with confirmation mailed to such
Purchaser at the address set forth for such purpose in Schedule I to the Note
Purchase Agreement (or at such other address as such Purchaser shall have
furnished to Guarantor in writing for purposes of receiving such confirmations),
(ii) if to any other Holder, to such Holder's facsimile transmission number as
it appears on the register maintained by the Trust pursuant to (S)11 of the Note
Purchase Agreement, with confirmation mailed to such Holder at the address set
forth for such purpose on that register, (iii) if to any Beneficiary who or
which is not a Holder, to the facsimile transmission number, if any, that such
Beneficiary shall have furnished to Guarantor in writing for purposes of
receiving such notices or other communications, with confirmation mailed to such
Beneficiary at the address, if any, that such Beneficiary shall have furnished
to Guarantor for purposes of receiving such confirmations, or (iv) if to
Guarantor, c/o the Trust, to (713) 866-6049 (or to such other facsimile
transmission number as Guarantor shall have furnished to each Purchaser and to
each other Holder in writing for purposes of receiving such notices or other
communications), Attention: Executive Vice President and Chief Financial
Officer, with confirmation mailed to Guarantor, c/o the Trust, at 2600 Citadel
Plaza Drive, Houston, Texas 77008 (or at such other address as Guarantor shall
have furnished to each Purchaser and to each other Holder in writing for
purposes of receiving such confirmations). Such notices shall be effective when
delivered by facsimile transmission in accordance with this (S)3.2.
(S)3.3 Entire Agreement. This Agreement (i) embodies the entire agreement
between each of the Beneficiaries and Guarantor with respect the subject matter
hereof and (ii) supersedes all prior agreements and understandings relating to
that subject matter.
(S)3.4 Amendment. This Agreement may be amended only by an instrument in
writing signed by Guarantor and each of the Holders.
(S)3.5 Assignment. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by each of the Beneficiaries and such
Beneficiary's successors, assigns and legal representatives whether so expressed
or not, provided that Guarantor may not, without the prior written consent of
each Holder, assign any of its rights or obligations hereunder.
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<PAGE>
(S)3.6 Headings. Section headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.
(S)3.7 Multiple Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.
(S)3.8 Governing Law. This Agreement shall be construed and enforced in
accordance with, and governed by, the laws of the State of Texas.
(S)3.9 Severability. If any of the provisions of this Agreement shall be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions of this Agreement shall not in any
way be affected thereby.
Very truly yours,
[Name of Guarantor]
By:
------------------------------
Name: [Name of Officer]
Title: [Off1ce of Officer]
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<PAGE>
Exhibit I To Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
CERTIFICATE OF THE SECRETARY OF A CURRENT SUBSIDIARY
This certificate is delivered pursuant to (S)4.12(b) of the Note Purchase
Agreement dated as of April 1, 1994 (the "Agreement"), between Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), and The Variable
Annuity Life Insurance Company and American General Life Insurance Company
(collectively, the "Purchasers"). The undersigned, [name of secretary of Current
Subsidiary], the Secretary of [name of Current Subsidiary], a [state and form
of organization of Current Subsidiary] (the "Subsidiary"), hereby certifies to
each of the Purchasers as follows:
1. Joseph W. Robertson, Jr. is a duly elected, qualified and acting Executive
Vice President of the Subsidiary, and the signature appearing above such
officer's name on the Agreement of Guaranty delivered pursuant to (S)4.12(a) of
the Agreement is such officer's genuine signature.
2. Attachment A hereto is a true and correct copy of resolutions adopted by the
Board of Directors of the Subsidiary on [date of such adoption] and making the
determination, and authorizing the action, specified in (S)4.12(b)(ii) of the
Agreement. Such resolutions have not been amended or rescinded and are in full
force and effect at the date hereof.
Dated: [Closing Date]
------------------------------------------
[Name of Secretary of Current Subsidiary]
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<PAGE>
Attachment A to Certificate of the
Secretary of a Current Subsidiary
WHEREAS, the Company, a subsidiary of Weingarten Realty Investors, a Texas real
estate investment trust ("WRI"), has determined that it is in the Company's best
interest to guarantee indebtedness of WRI to be incurred under a Note Purchase
Agreement dated as of April 1, 1994, among WRI, The Variable Annuity Life
Insurance Company and American General Life Insurance Company; and
WHEREAS, in connection therewith, the Company will execute and deliver a
guaranty agreement to The Variable Annuity Life Insurance Company and American
General Life Insurance Company;
NOW, THEREFORE, BE IT RESOLVED, that the form, terms and provisions of the
proposed Agreement of Guaranty dated [Closing Date] (the "Guaranty"), by the
Company and addressed to The Variable Annuity Life Insurance Company and
American General Life Insurance Company are hereby approved; and
FURTHER RESOLVED, that the Board of Directors of the Company hereby determines
pursuant to Article 1302-2.06 of the Texas Miscellaneous Corporation Laws Act
that the execution and delivery of the Guaranty by the Company will benef1t,
directly or indirectly, the Company; and
FURTHER RESOLVED, that Joseph W. Robertson, Jr., the Executive Vice President of
the Company, is hereby authorized to execute and deliver on behalf of the
Company the Guaranty, with such changes therein as such officer shall approve,
the execution by such officer of the Guaranty to be conclusive evidence of such
approval; and
FURTHER RESOLVED, that each of the officers of the Company is authorized to take
any and all such other actions, execute and deliver any and all such
instruments, documents and papers and exercise any and all powers on behalf of
the Company as such officer may determine to be advisable and in the best
interest of the Company and to effectuate the purposes and intent of the
foregoing resolutions, such determination to be conclusively evidenced by the
taking of such actions, execution of such instruments, documents or papers or
the exercise of such powers.
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<PAGE>
Exhibit J To Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
OFFICERS' CERTIFICATE AT FUNDING
This certificate is delivered pursuant to (S)5.3(a) of the Note Purchase
Agreement dated as of April 1, 1994 (the "Agreement"), between Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), and The Variable
Annuity Life Insurance Company and American General Life Insurance Company
(collectively, the "Purchasers"). The undersigned, [name of the Chairman of the
Board of Trust Managers, the President or one of the Executive Vice Presidents
of the Trust], a/the [office of officer] of the Trust, and [name of chief
financial officer, chief accounting officer or the Treasurer of the Trust],
a/the [office of officer] of the Trust, hereby certify on behalf of the Trust to
each of the Purchasers as follows:
1. The representations and warranties of the Trust contained in the Agreement
are true and correct at the Funding for Notes of the series that are being
issued and sold pursuant to the Agreement on the date of this certificate with
the same effect as though made at such Funding.
2. The Trust has performed and complied with all agreements and conditions
contained in the Agreement that are required to be performed or complied with by
the Trust before or at such Funding.
3. At such Funding, no Event of Default or Potential Event of Default exists.
Capitalized terms used herein, and not otherwise defined, have the same meanings
as set forth in the Agreement.
Dated: [Funding Date]
WEINGARTEN REALTY INVESTORS
By:
------------------------------------
Name: [Name of first-mentioned Officer]
Title: [Office of Officer]
By:
------------------------------------
Name: [Name of second-mentioned Officer]
Title: [Office of Officer]
J- 1
<PAGE>
Exhibit K To Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
CERTIFICATE OF THE SECRETARY OF THE TRUST AT FUNDING
This certificate is delivered pursuant to (S)5.3(b) of the Note Purchase
Agreement dated as of April 1, 1994 (the "Agreement"), between Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), and The Variable
Annuity Life Insurance Company and American General Life Insurance Company
(collectively, the "Purchasers"). The undersigned, M. Candace DuFour, the
Secretary of the Trust, hereby certifies to each of the Purchasers as follows:
1. Joseph W. Robertson, Jr. is a duly elected, qualified and acting Executive
Vice President of the Trust, and each of the signatures appearing above such
officer's name (i) on the Officers' Certificate delivered pursuant to (S)3(a) of
the Agreement pursuant to which the Trust notified each Purchaser of the
intention of the Trust to issue and sell Notes of the series that are being
issued and sold pursuant to the Agreement on the date of this certificate, (ii)
on each of such Notes, and (iii) on each document that the Trust is required by
the Agreement to execute and deliver as a condition to the respective
obligations of the Purchasers to purchase such Notes is his genuine signature.
2. [Name of other officer who signed the Officers' Certificate delivered
pursuant to (S)3(a) of the Agreement pursuant to which the Trust notified each
Purchaser of the intention of the Trust to issue and sell Notes of the series
that are being issued and sold pursuant to the Agreement on the date of this
certificate] is a/the duly elected, qualified and acting [officer of officer] of
the Trust, and the signature appearing above such officer's name on the
Officers' Certificate delivered pursuant to (S)3(a) of the Agreement pursuant to
which the Trust notified each Purchaser of the intention of the Trust to issue
and sell such Notes is his genuine signature.
3. The resolutions adopted by the Board of Trust Managers of the Trust and
delivered to each of the Purchasers pursuant to (S)4.3(b) of the Agreement have
not been amended or rescinded by the Board of Trust Managers of the Trust and
are in full force and effect at the date hereof.
Capitalized terms used herein, and not otherwise defined, have the same meanings
as set forth in the Agreement.
K-1
<PAGE>
Dated: [Funding Date]
----------------------------------
M. Candace DuFour, Secretary
K-2
<PAGE>
Exhibit L To Note
Purchase Agreement
OPINION OF ANDREWS & KURTH L.L.P.
[Letterhead of Andrews & Kurth L.L.P.]
[Funding Date]
To The/Each Person Named on
Attachment A Hereto
Ladies and Gentlemen:
We have acted as special counsel to Weingarten Realty Investors, a Texas real
estate investment trust (the "Trust"), in connection with the issue and sale to
you by the Trust of its Variable Issue Senior Secured Notes, Series [series
designated pursuant to (S)3(a)(v) of the Note Purchase Agreement] (the "Series
[designated series] Notes"), in the principal amount stated in the notice given
by you pursuant to (S)3(d) of the Note Purchase Agreement dated as of April 1,
1994 (the "Note Purchase Agreement"), between the Trust and The Variable Annuity
Life Insurance Company ("VALIC") and American General Life Insurance Company
(together, the "Purchasers" and individually, a "Purchaser").
The opinions expressed herein are furnished to you at the request of the Trust
pursuant to (S)5.8 of the Note Purchase Agreement. Except as otherwise stated
herein, capitalized terms used herein and not otherwise defined herein have the
respective meanings provided in the Note Purchase Agreement.
For purposes of rendering the opinions expressed herein, we have examined each
of the following documents:
(1) the Note Purchase Agreement;
(2) the Series [designated series] Note/Notes that is/are being delivered to
you/the Purchasers, respectively, at the Funding for the Series [designated
series] Notes;
(3) the Deed of Trust, Assignment of Rents, Security Agreement and Financing
Statement dated to be effective on the Closing Date [if no Supplemental Mortgage
was executed on or before the Funding Date, "(the 'Mortgage')"; and if any
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Supplemental Mortgage was executed on or before the Funding Date, "(as
supplemented by the Supplemental Deed of Trust, Assignment of Rents, Security
Agreement and Financing Statement dated to be effective on [effective date of
such Supplemental Mortgage], from the Trust to John Madsen, as trustee, the
'Mortgage')"], from the Trust to John Madsen, as trustee;
(4) Amendment No. 2 to Note Purchase Agreement entered into as of the Closing
Date (the "Amendment"), between the Trust and the Purchasers and American
General Life and Accident Insurance Company ("AGLA");
(5) the separate Agreements of Guaranty dated the Closing Date (collectively,
the "Guaranty Agreements" and individually, a "Guaranty Agreement"), from the
respective Persons named on Attachment B hereto (collectively, the "Guaranteeing
Subsidiaries" and individually, a "Guaranteeing Subsidiary") to the Purchasers;
(6) a financing statement on form UCC-1 executed by the Trust, as debtor, and
naming the Purchasers as secured parties (the "Financing Statement");
(7) the Note Purchase Agreement dated August 6, 1987, between Weingarten Realty,
Inc., and VALIC, AGLA, American General Life Insurance Company of Delaware,
Republic National Life Insurance Company and American-Amicable Life Insurance
Company, as amended by the Amendment to Note Purchase Agreement dated to be
effective as of March 31, 1991, between the Trust and the Purchasers and AGLA,
and by the Amendment (as so amended, the "Amended Senior Secured Note
Agreement");
(8) the Trust's Restated Declaration of Trust certified by the County Clerk of
Harris County, Texas (the "Declaration of Trust"), and the bylaws of the Trust;
(9) [if Andrews & Kurth L.L.P. has examined the corporate records of the
respective Guaranteeing Subsidiaries, "the Articles of Incorporation and bylaws
of each of the Guaranteeing Subsidiaries"; and, if such examination was
performed by other counsel to the Trust, "the opinion letter dated the date
hereof of [name of such other counsel]"]; and
(10) such records of the Trust and of each of the Current Subsidiaries, and such
communications, certificates of public officials, certificates of officers of
the Trust and of each of the Current Subsidiaries, and other documents, as we
have deemed necessary as a basis for the opinions expressed herein.
L-2
<PAGE>
The Trust and the Guaranteeing Subsidiaries are referred to herein collectively
as the "WRI Companies" and individually as a "WRI Company"; the Purchasers and
AGLA are referred to herein collectively as the "AGC Companies" and individually
as an "AGC Company"; and the documents enumerated in paragraphs (1) through (5)
above are referred to herein collectively as the "Operative Agreements" and
individually as an "Operative Agreement".
In making that examination, we have assumed (i) the authenticity of each of
those documents that constitutes an original, (ii) the conformity to the
authentic original of each of those documents that constitutes a copy, (iii) the
genuineness of each signature on each of those documents (other than signatures
of officers of the respective WRI Companies on any of the Operative Agreements
or the Financing Statement), (iv) the legal capacity of each natural person who
executed any of those documents, and (v) the accuracy of each statement
contained in any of the certificates or communications of public officials
examined by us.
In rendering the opinions expressed herein, we have also assumed that:
(1) each of the AGC Companies (i) has been duly organized, (ii) is validly
existing, and (iii) has corporate power to execute and deliver, and to perform
its obligations under, each of the Operative Agreements in which such AGC
Company is identified as a party;
(2) the execution and delivery of each of the Operative Agreements by each AGC
Company identified therein as a party thereto have been duly authorized by all
necessary corporate action on the part of such AGC Company;
(3) each of the AGC Companies has duly executed and delivered each of the
Operative Agreements in which such AGC Company is identified as a party;
(4) each of the AGC Companies has satisfied any other legal requirements that
are applicable to such AGC Company to the extent necessary to make each of the
Operative Agreements in which such AGC Company is identified as a party
enforceable against such AGC Company, and each of the AGC Companies has
complied, and each Holder will comply, with any other legal requirements
pertaining to the status of such AGC Company or such Holder as such status
relates to the rights of such AGC Company or such Holder to enforce each
Operative Agreement against the WRI Company identified in such Operative
Agreement as a party thereto; and
(5) you/the Purchasers have purchased the Series [designated series] Note/Notes
that is/are being delivered to you/the Purchasers, respectively, at the Funding
for the Series [designated
L-3
<PAGE>
series] Notes and have delivered the purchase price therefor pursuant to (S)3(e)
of the Note Purchase Agreement.
As to questions of fact that are relevant to the opinions expressed herein, we
have relied upon (i) certificates of officers of the Trust or of the respective
Current Subsidiaries and (ii) the representations made by each of the Purchasers
in (S)7 of the Note Purchase Agreement.
Based upon the foregoing, and having regard for such legal considerations as we
have deemed relevant, we are of the opinion that:
1. The Trust has been duly organized as a real estate investment trust under the
Texas Real Estate Investment Trust Act, is validly existing and in good standing
under the laws of the State of Texas, and has all requisite power and authority
to own and operate its properties, to carry on its business as now conducted, to
enter into and perform its obligations under each of the Note Purchase Agreement
and the Mortgage, to enter into the Amendment, to perform its obligations under
the Amended Senior Secured Note Agreement, and to issue and sell the Notes.
2. Each of the Guaranteeing Subsidiaries is a corporation that has been duly
organized under the laws of the State of Texas, is validly existing and in good
standing under those laws, and has all requisite corporate power and authority
to own and operate its properties, to carry on its business as now conducted,
and to enter into and perform its obligations under the Guaranty Agreement in
which such Guaranteeing Subsidiary is identified as the Guarantor.
3. The execution and delivery by the Trust of each of the Note Purchase
Agreement, the Amendment, the Mortgage and the Financing Statement, the issue
and sale by the Trust pursuant to the Note Purchase Agreement of not more than
$30,000,000 aggregate principal amount of the Notes, and the execution and
delivery by the Trust of the Series [designated series] Note/Notes that is/are
being delivered to you/the Purchasers, respectively, at the Funding for the
Series [designated series] Notes, have been duly authorized by all necessary
action of the Trust. Each of the Note Purchase Agreement, the Amendment, the
Mortgage, the Financing Statement and such Series [designated series] Note/Notes
has been duly executed and delivered by the Trust.
4. The execution and delivery by each of the Guaranteeing Subsidiaries of the
Guaranty Agreement in which such Guaranteeing Subsidiary is identified as the
Guarantor have been duly authorized by all necessary action of such Guaranteeing
Subsidiary. Each of the Guaranty Agreements has been duly executed and delivered
by the Guaranteeing Subsidiary identified therein as the Guarantor.
5. Each of the Note Purchase Agreement, the Amendment, the Mortgage and the
Series [designated series] Note/Notes that is/are being delivered to you/the
Purchasers, respectively, at the Funding for the Series [designated series]
Notes constitutes a legal, valid and binding obligation of the Trust that is
enforceable against the Trust in accordance with its terms.
L-4
<PAGE>
6. Each of the Guaranty Agreements constitutes a legal, valid and binding
obligation of the Guaranteeing Subsidiary identified therein as the Guarantor
that is enforceable against such Guaranteeing Subsidiary in accordance with the
terms of such Guaranty Agreement.
7. Neither the execution and delivery by the Trust of the Note Purchase
Agreement, the Amendment, the Mortgage, the Financing Statement or the Notes,
nor compliance by the Trust with the terms thereof, nor the execution and
delivery by any Guaranteeing Subsidiary of the Guaranty Agreement in which such
Guaranteeing Subsidiary is identified as the Guarantor, nor compliance by such
Guaranteeing Subsidiary with the terms of such Guaranty Agreement, breaches,
violates or constitutes a default under, or results in the creation (or imposes
any obligation on the Trust or any Guaranteeing Subsidiary to create) any Lien,
other than the Lien of the Mortgage, upon any properties of the Trust or any
Current Subsidiary pursuant to, any term of (i) the Declaration of Trust or the
Trust's bylaws, (ii) the Articles of Incorporation or bylaws of such
Guaranteeing Subsidiary, (iii) any applicable statutory law or regulation or
(iv) to our knowledge, any applicable order of any court, arbitrator or
governmental authority that names the Trust or any Current Subsidiary and is
specifically directed to it or its property.
8. The Trust is not required by any statutory law or regulation to obtain any
consent, approval or authorization of, or to make any declaration or filing
with, any governmental authority as a condition to (i) the valid execution or
delivery of the Note Purchase Agreement, the Amendment, the Mortgage, the
Financing Statement or the Notes, (ii) the offering, issue or sale of the Notes
pursuant to the Note Purchase Agreement, or (iii) the payment of the principal
of, and interest and premium (if any) on, the outstanding Notes in accordance
with their respective terms. The offering, issue and sale of the Notes pursuant
to the Note Purchase Agreement do not require the registration of the Notes
under the Securities Act of 1933, as amended, or the registration or
qualification of the Notes under the Texas Securities Act, as amended.
9. None of the Guaranteeing Subsidiaries is required by any statutory law or
regulation to obtain any consent, approval or authorization of, or to make any
declaration or filing with, any governmental authority as a condition to (i) the
valid execution or delivery of the Guaranty Agreement in which such Guaranteeing
Subsidiary is identified as the Guarantor or (ii) the payment of any of the
Guaranteed Obligations (as that term is defined in such Guaranty Agreement).
10. The issue and sale of the Notes pursuant to, and the use of the proceeds of
the sale of the Notes in accordance with, the Note Purchase Agreement do not
violate Regulations G, T, U or X promulgated by the Board of Governors of the
Federal Reserve System.
11. Neither the Trust nor any Current Subsidiary is (i) an "investment company",
or a company "controlled" by an "investment company", as such terms are defined
in the Investment Company Act of 1940, as amended, or (ii) a "holding company",
or a "subsidiary company" of a "holding company", or an "affiliate" of a
L-5
<PAGE>
"holding company" or of a "subsidiary company" of a "holding company", as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended.
12. The Mortgage creates, as security for the payment of the Obligations, (i) in
favor of the Trustee, a valid lien on that portion of the Mortgaged Properties
(as that term is defined in the Mortgage) that constitutes real property, or
interests in real property, under the laws of the State of Texas (the "Subject
Property"), (ii) in favor of the Beneficiaries (as that term is defined in the
Mortgage), a valid assignment of the Rents (as that term is defined in the
Mortgage), and (iii) in favor of the Secured Party (as that term is defined in
the Mortgage), a valid security interest in that portion of the Mortgaged
Properties in which a security interest can be created pursuant to Article 9 of
the Texas UCC (the "Code Collateral").
13. The Mortgage (i) has been acknowledged in the manner required by
(S) 13.001(a) of the Texas Property Code and according to the method required by
Chapter 121 of the Texas Civil Practice and Remedies Code, (ii) is otherwise in
proper form for filing in the Official Public Records of Real Property of Harris
County, Texas, and in the Official Records of Fort Bend County, Texas, and (iii)
has been filed in each of those records. All taxes, fees and other charges
imposed by any statutory law or regulation as a condition to those filings have
been paid. The Mortgage is entitled to the benefits of (S)13.002 of the Texas
Property Code, and no other action is or will be required by the laws of the
State of Texas, as currently in effect, to provide notice of the lien created by
the Mortgage on the Subject Property until the expiration of four years
following the date on which the Obligation that last becomes due and payable so
becomes due and payable.
14. The Financing Statement (i) is in proper form for filing in the Office of
the Secretary of State of the State of Texas and (ii) has been filed in that
off1ce. All taxes, fees and other charges imposed by any statutory law or
regulation as a condition to that filing have been paid. The security interest
created by the Mortgage in that portion of the Code Collateral a security
interest in which can be perfected by the filing of a financing statement in the
Office of the Secretary of State of the State of Texas has been perfected, and
no other recording, registration or filing in the State of Texas is or will be
required by the laws of the State of Texas, as currently in effect, to continue
the perfection of that security interest, except that (i) continuation
statements with respect to the Financing Statement must be filed in that office
within six months prior to the expiration of each period of five years from the
date of filing of the Financing Statement, (ii) amendments to the Financing
Statement, additional financing statements, or both may be required to be filed
if there is a change in the name, identity or structure of the Trust, if the
Trust changes the location of its chief executive office, upon the registration
of transfer of any Note, or if any portion of the Code Collateral that
constitutes tangible personal property is located outside the State of Texas,
and (iii) continuation of perfection of any security interest in "proceeds" (as
that term is defined in the Texas UCC) is limited by (S)9.306 of the Texas UCC.
[If Andrews & Kurth L.L.P. has not examined the corporate records of the
respective Guaranteeing Subsidiaries, "In rendering the opinion expressed in
paragraph 2 hereof, in rendering the opinion expressed in paragraph 4 hereof,
and in
L-6
<PAGE>
rendering the opinion expressed in paragraph 7 hereof insofar as that opinion
pertains to the Articles of Incorporation or bylaws of any Guaranteeing
Subsidiary, we have relied upon the opinions expressed in the opinion letter
dated the date hereof of [name of other counsel to the Trust whose opinion is so
relied upon]. Although we have not verified the substance of those opinions and,
therefore, are not in a position to concur therein, the form and scope of those
opinions are satisfactory to us, and we believe that [name of such counsel]
is/are competent to render the opinions expressed in that opinion letter."]
Each of the opinions expressed in paragraphs 5 and 6 hereof is subject to the
exception that the enforceability of each of the Operative Agreements may be
limited by (i) applicable bankruptcy, insolvency, reorganization, receivership,
moratorium or other similar laws or judicial decisions affecting the rights and
remedies of creditors generally, including, without limitation, fraudulent
transfer or conveyance statutes, and (ii) general principles of equity,
including, without limitation, requirements of good faith, fair dealing and
reasonableness, the possible unavailability of specific performance, injunctive
relief or other equitable remedies (regardless of whether such enforceability is
considered in a proceeding in equity or at law), the possible availability of
equitable defenses, and concepts of materiality, unconscionable conduct of an
enforcing party or impracticability or impossibility of performance.
In rendering the opinion expressed in paragraph 5 hereof as to the
enforceability of the Note Purchase Agreement and the Series [designated series]
Note/Notes that is/are being delivered to you/the Purchasers, respectively, at
the Funding for the Series [designated series] Notes, we express no opinion as
to the enforceability of the obligation of the Trust to pay any Note Default
Premium for any of the outstanding Series [designated series] Notes, or to pay
any Special Prepayment Premium or any Reduced Prepayment Premium for any Series
Required Prepayment with respect to the Series [designated series] Notes, that
does not constitute a voluntary prepayment. Although the relevant authorities
with respect to this issue may be conflicting, we believe that, in a properly
presented case, a court should conclude that the obligation of the Trust to pay
those premiums in accordance with the terms of the Note Purchase Agreement is
enforceable.
The opinions expressed in paragraph 5 hereof is subject to the further exception
that the provisions of the Note Purchase Agreement that state, in effect, that
maturity of the Series [designated series] Notes may be accelerated as a result
of default by the Trust in the performance of, or compliance with, (S)10.5(b) of
the Note Purchase Agreement may be limited by (S)9.311 of the Texas UCC and by
the principles stated in certain reported Texas cases.
In rendering the opinion expressed in paragraph 5 hereof with respect to the
enforceability of the Mortgage, we express no opinion with respect to the
enforceability of any provision thereof that would permit the Secured Party to
receive the cash proceeds of rents, incomes, revenues, issues, or profits from
any of the Mortgaged Properties if the Secured Party were not in lawful
possession of such Mortgaged Properties or of such cash proceeds or had not
obtained the appointment of a receiver therefor to impound such rents, incomes,
revenues, issues, or profits.
L-7
<PAGE>
The opinion expressed in paragraph 5 hereof is subject to the further exception
that (S)(S)51.003 and 51.004 of the Texas Property Code may limit the
enforceability of the Note Purchase Agreement and the Series [designated series]
Note/Notes that is/are being delivered to you/the Purchasers, respectively, at
the Funding for the Series [designated series] Notes in the event of foreclosure
of the Lien of the Mortgage.
The opinion expressed in paragraph 5 hereof as to the enforceability of the
Mortgage is subject to the further exception that some of the remedial
provisions of the Mortgage may be further limited or rendered unenforceable by
other applicable laws. However, in our opinion, such laws do not, subject to the
other exceptions, assumptions and limitations contained herein, make the
remedies generally afforded by the Mortgage inadequate for the practical
realization of the principal benef1ts or security purported to be provided by
the Mortgage, except for the economic consequences of procedural or other
delays.
In rendering the opinion expressed in paragraph 5 hereof as to the
enforceability of the Mortgage, we express no opinion as to the enforceability
of any provision thereof that purports to (i) establish evidentiary standards,
(ii) waive any right or defense that cannot be waived as a matter of law, or
(iii) negate the effect of any delay to exercise any right, power or remedy for
which the Mortgage provides.
In rendering the opinion expressed in paragraph 5 hereof as to the
enforceability of the Note Purchase Agreement, we express no opinion as to the
enforceability of (S)30 thereof; and in rendering the opinion expressed in
paragraph 5 hereof as to the Mortgage, we express no opinion as to the
enforceability of (S)6.9 thereof; and in rendering the opinion expressed in
paragraph 6 hereof, we express no opinion as to the enforceability of (S)3.9 of
any of the Guaranty Agreements.
The opinion expressed in paragraph 6 hereof is subject to the further exception
that (S)51.005 of the Texas Property Code may limit the enforceability of each
of the Guaranty Agreements in the event of foreclosure of the Lien of the
Mortgage.
In rendering the opinion expressed in paragraph 8 hereof with respect to the
absence of any requirement to register or qualify the Notes under the Texas
Securities Act, we have assumed that each of the Purchasers is an insurance
company, within the meaning of Section 5.H of that Act.
In rendering the opinion expressed in paragraph 5 hereof with respect to the
enforceability of the Mortgage, and in rendering the opinion expressed in
paragraph 12 hereof, we have assumed, except as stated in any opinion of this
firm furnished to you pursuant to (S)5.10 of the Note Purchase Agreement at the
Funding for the Series [designated series] Notes, that (i) the Trust has title
to the Subject Property and (ii) the Trust has rights in the tangible and
intangible personal property and fixtures included in the Mortgaged Properties
(as that term is defined in the Mortgage).
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<PAGE>
In rendering the opinion expressed in paragraph 13 hereof, we have assumed that
the Subject Property is located entirely within Harris County, Texas, or Fort
Bend County, Texas.
The opinions expressed herein do not address:
(1) the title of any Person to any of the Mortgaged Properties, except as stated
in any opinion of this firm furnished to you pursuant to (S)5.10 of the Note
Purchase Agreement at the Funding for the Series [designated series] Notes;
(2) the priority of the Lien of the Mortgage;
(3) the absence of any Lien on any of the Mortgaged Properties;
(4) the existence, validity or enforceability of, or the suff1ciency of the
Mortgage to create, any Lien on any of the Mortgaged Properties, other than the
lien, assignment and security interest referred to in paragraph 12 hereof;
(5) the perfection of any Lien on any of the Mortgaged Properties, except as
stated in paragraphs 13 or 14 hereof;
(6) the accuracy of the description of any of the Mortgaged Properties contained
in the Mortgage; or
(7) the effect of limitations contained in the Bankruptcy Reform Act of 1978, as
amended, upon the extent to which property acquired after the commencement of a
case thereunder may be subjected to a security interest arising from an
agreement entered into prior to the commencement of that case.
At the request of the Trust, we advise you that, to our knowledge, there are no
actions, proceedings or investigations pending, or overtly threaten by any
written communication, against the Trust or any Current Subsidiary that (i)
questions the validity or legality of, seeks damages in connection with, or
seeks to enjoin or otherwise restrain the performance of, any Transaction
Document, or any action taken or to be taken pursuant to any Transaction
Document, or (ii) may reasonably be expected to (x) result in any material
adverse change in the business, condition (financial or otherwise), assets, or
operations of the Trust or the Trust and the Current Subsidiaries, taken as a
whole, (y) result in any liability on the part of the Trust or any Current
Subsidiary that would be material to the Trust or the Trust and the Current
Subsidiaries, taken as a whole, or (z) have a materially adverse effect on the
ability of the Trust or any Current Subsidiary to perform its obligations under
any Operative Document to which it is a party.
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<PAGE>
As used herein, the phrase "to our knowledge" means conscious awareness on the
part of any lawyer in our firm who has devoted substantive attention to the
representation of the Trust at any time during the one-year period preceding the
date of this letter. For purposes of rendering the opinion expressed in
paragraph 7 hereof and providing you the advice contained in the immediately
preceding paragraph, we have not reviewed the records of any court or
governmental authority or conducted a general review of our firm's files or the
files of the Trust or any Current Subsidiary.
References herein to the "Texas UCC" are to the Uniform Commercial Code as
currently in effect in the State of Texas.
The opinions expressed herein are limited to the laws of the State of Texas and
the federal laws of the United States of America.
The opinions expressed herein are for the sole benefit of, and may be relied
upon only by, the Purchasers, their respective successors and assigns, and the
Holders from time to time, except that Fulbright & Jaworski L.L.P., your special
counsel, may rely upon those opinions in rendering the opinions expressed in
that firm's letter delivered to you pursuant to (S)5.9 of the Note Purchase
Agreement at the Funding for the Series [designated series] Notes.
Very truly yours,
Andrews & Kurth L.L.P.
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Attachment A to
Opinion of Andrews & Kurth L.L.P.
PURCHASER[S]
[Name and address of the/each Purchaser that has given a notice pursuant to
(S)3(d) of the Note Purchase Agreement stating that such Purchaser intends to
purchase a principal amount of Notes of the series that are being issued and
sold on such Funding Date]
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Attachment B to
Opinion of Andrews & Kurth L.L.P.
GUARANTEEING SUBSIDIARIES
Weingarten/Lubbock, Inc.
Weingarten/Southgate, Inc.
Weingarten/Lufkin, Inc.
Weingarten/Tennessee, Inc.
Weingarten/Arkansas, Inc.
Weingarten/Jones Road Company, Inc.
Weingarten/Maine, Inc.
Weingarten/Oklahoma, Inc.
WRI/Bay City, Inc.
Weingarten Railspur, Inc.
Amarillo Centers, Inc.
Cypress/Westfield, Inc.
Weingarten/Lufkin Theatre, Inc.
Weingarten/New York, Inc.
Weingarten/Village Arcade, Inc.
Weingarten/Village Arcade II, Inc.
WRI/Lathrop, Inc.
WRI/Nederland, Inc.
WRI/Puckett, Inc.
WRI/SW Park II, Inc.
Mesquite/Town East, Inc.
Weingarten Realty Management Company
Weingarten/Arizona, Inc.
WRI/Bell, Inc.
WRI/Ministorage, Inc.
WTSC, Inc.
WRI/Post Oak, Inc.
[If, at any Funding, any of the above-named corporations shall have been
released, pursuant to (S)15 of the Note Purchase Agreement, from liability under
the Guaranty Agreement in which such corporation is identified as the Guarantor,
then that corporation's name shall be deleted from this Attachment B.]
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Exhibit M To Note
Purchase Agreement
OPINION OF FULBRIGHT & JAWORSKI L.L.P.
[Letterhead of Fulbright & Jaworski L.L.P.]
[Funding Date]
To The/Each Person Named on
Attachment A Hereto
Ladies and Gentlemen:
We have acted as your special counsel in connection with the issue and sale to
you by Weingarten Realty Investors, a Texas real estate investment trust (the
"Trust"), of its Variable Issue Senior Secured Notes, Series [series designated
pursuant to (S)3(a)(v) of the Note Purchase Agreement] (the "Series [designated
series] Notes"), in the principal amount stated in the notice given by you
pursuant to (S)3(d) of the Note Purchase Agreement dated as of April 1, 1994
(the "Note Purchase Agreement"), between the Trust and The Variable Annuity Life
Insurance Company and American General Life Insurance Company (together, the
"Purchasers").
The opinions expressed herein are furnished to you at your request pursuant to
(S)5.9 of the Note Purchase Agreement.
For purposes of rendering the opinions expressed herein, we have examined each
of the following documents:
(1) the Note Purchase Agreement;
(2) the Series [designated series] Note/Notes that is/are being delivered to
you/the Purchasers, respectively, at the Funding for the Series [designated
series] Notes;
(3) the Deed of Trust, Assignment of Rents, Security Agreement and Financing
Statement dated to be effective on the Closing Date [if no Supplemental Mortgage
was executed on or before the Funding Date, "(the 'Mortgage')"; and if any
Supplemental Mortgage was executed on or before the Funding Date, "(as
supplemented by the Supplemental Deed of Trust, Assignment of Rents, Security
Agreement and Financing Statement
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dated to be effective on [effective date of such Supplemental Mortgage], from
the Trust to John Madsen, as trustee, the 'Mortgage')"], from the Trust to John
Madsen, as trustee;
(4) Amendment No. 2 to Note Purchase Agreement entered into as of the Closing
Date, between the Trust and the Purchasers and American General Life and
Accident Insurance Company;
(5) the separate Agreements of Guaranty dated the Closing Date, from the
respective Persons named on Attachment B hereto to the Purchasers;
(6) a financing statement on form UCC-1 executed by the Trust, as debtor, and
naming the Purchasers as secured parties; and
(7) the opinion letter of Andrews & Kurth L.L.P., counsel to the Trust in
connection with the issue and sale to you by the Trust of the Series [designated
series] Notes, which opinion letter is being delivered to you at the Funding for
the Series [designated series] Notes pursuant to (S)5.8 of the Note Purchase
Agreement (the "Opinion Letter").
Based on the foregoing, we advise you that, although we have not verified the
substance of the opinions expressed in the Opinion Letter and, therefore, are
not in a position to concur therein, the form and scope of those opinions are
satisfactory to us and, in our opinion, you are justified in relying thereon,
subject to the assumptions, limitations and qualifications set forth therein.
The advice and opinion expressed herein are for the sole benefit of, and may be
relied upon only by, you, your respective successors and assigns, and the
Holders from time to time.
Very truly yours,
Fulbright & Jaworski L.L.P.
M-2
<PAGE>
Attachment A to
Opinion of Fulbright & Jaworski L.L.P.
PURCHASER[S]
[Name and address of the/each Purchaser that has given a notice pursuant to
(S)3(d) of the Note Purchase Agreement stating that such Purchaser intends to
purchase a principal amount of Notes of the series that are being issued and
sold on such Funding Date]
M-3
<PAGE>
Attachment B to
Opinion of Fulbright & Jaworski L.L.P.
GUARANTEEING SUBSIDIARIES
Weingarten/Lubbock, Inc.
Weingarten/Southgate, Inc.
Weingarten/Lufkin, Inc.
Weingarten/Tennessee, Inc.
Weingarten/Arkansas, Inc.
Weingarten/Jones Road Company, Inc.
Weingarten/Maine, Inc.
Weingarten/Oklahoma, Inc.
VVRI/Bay City, Inc.
Weingarten Railspur, Inc.
Amarillo Centers, Inc.
Cypress/Westfield, Inc.
Weingarten/Lufkin Theatre, Inc.
Weingarten/New York, Inc.
Weingarten/Village Arcade, Inc.
Weingarten/Village Arcade II, Inc.
WRI/Lathrop, Inc.
WRI/Nederland, Inc.
WRI/Puckett, Inc.
WRI/SW Park II, Inc.
Mesquite/Town East, Inc.
Weingarten Realty Management Company
Weingarten/Arizona, Inc.
WRI/Bell, Inc.
WRI/Ministorage, Inc.
WTSC, Inc.
WRI/Post Oak, Inc.
[If, at any Funding, any of the above-named corporations shall have been
released pursuant to (S)15 of the Note Purchase Agreement, from liability under
the Guaranty Agreement in which such corporation is identified as the Guarantor,
then that corporation's name shall be deleted from this Attachment B.]
M-4
<PAGE>
Exhibit N to Note
Purchase Agreement
DESCRIPTION OF INDEBTEDNESS FOR BORROWED MONEY
OF THE TRUST AND SUBSIDIARIES
<TABLE>
<CAPTION>
PRINCIPAL SCHEDULED FINAL
TITLE OF INDEBTEDNESS AMOUNT MATURITY DATE HOLDER OR HOLDERS
------------------------ ----------------- -------------- --------------------
<S> <C> <C> <C>
Trust-deed and mortgage note $ 678,412 (a) 11-10-1998 Prudential Insurance Co.
Trust-deed and mortgage note 1,552,346 02-01-2000 Allstate Insurance
Trust-deed and mortgage note 115,014 (a) 02-07-2000 Daniel L. Kleiman
Trust-deed and mortgage note 485,140 07-17-2004 City of Houston
Trust-deed and mortgage note 239,669 04-15-2005 Hawn Foundation
Trust-deed and mortgage note 666,349 (a) 08-01-2007 Wells Fargo Mortgage Co.
Trust-deed and mortgage note 1,287,271 09-01-2007 American National Insurance Co.
Trust-deed and mortgage note 569,815 (a) 11-01-2007 First Madison Bank of Dallas
Trust-deed and mortgage note 401,479 (a) 07-01-2009 F.N.M.N.A.
Trust-deed and mortgage note 35,000,000 07-01-2009 American General
Revolving credit agreement 44,900,000 06-30-2004 Texas Commerce Bank
Industrial revenue and housing
bond 3,875,000 06-01-2012 Industrial Revenue Board,
Premiere Bank, Trustee
Industrial revenue and
housing bond 2,115,000 12-01-2014 Industrial Revenue Board,
Premier Bank, Trustee
Industrial revenue and
housing bond 2,025,000 01-01-2012 Industrial Revenue Board,
Calcasieu Bank, Trustee
Industrial revenue and
housing bond 4,731,562 12-01-2016 GCWA Industrial Dev. Corporation,
Nations Bank, Trustee
Industrial revenue and
housing bond 1,126,163 (a) 09-01-2006 Bexar County Housing Finance
Corporation, Allied Bank of
Texas, Trustee
Reverse repurchase agreements
(collateralized by government
securities) 48,501,000 Overnight Texas Commerce Bank
Revolving credit agreements 20,000,000 06-01-1996 Barclays Bank
Other 294,000
Guaranties 115,014 Daniel L. Kleiman
1,320,088 Wells Fargo Mortgage Co.
Bexar County Housing Finance
1,126,163 Corporation
</TABLE>
(a) WRI's prorata share of Joint Venture debt
N- 1
<PAGE>
Exhibit O To Note
Purchase Agreement
DESCRIPTION OF LIENS ON OTHER ASSETS
<TABLE>
<CAPTION>
Property
Specific
LOC Property Location Debt
--- ------------------------- ---------------------------------------------------------- ----------
<S> <C> <C> <C>
Shopping Centers
----------------
0008 Heights Plaza S/C Yale @ 20th, Houston, Texas $ 664,121
0011 Sheldon Forest S/C Sheldon Rd. @ I-10, Channelview, Texas (a)
(20,190 SF)
0012 Westwood Village S/C Congress @ Bertrand, Lafayette, Louisiana 5,990,000
0016 Harrisburg Plaza Harrisburg @ Wayside, Houston, Texas 486,030
0023 Lyons Ave. S/C Lyons Avenue @ Shotwell, Houston, Texas (a)
0026 Almeda Road S/C Almeda Road @ Barber, Houston, Texas (a)
0031 Griggs Road S/C Griggs @ Old Spanish Trail & Cullen, Houston, Texas (a)
0033 Miracle Corners S/C S. Shaver @ Southmore, Pasadena, Texas (a)
0036 University Plaza Bay Area @ Space Center, Clear Lake City, Texas (c)
0038 East Town S/C 3rd @ 1st, Lake Charles, Louisiana 115,014
0040 Westwood S/C Jewella @ Greenwood, Shreveport, Louisiana (a)
0041 New Boston Road Plaza New Boston @ Summerhill (Hwy 82 & 93), Texarkana, Texas (a)
0042 Bellfort S/C Bellfort @ Southbank, Houston, Texas (a)
0043 Bellaire Blvd. S/C Bellaire @ Cedar, Bellaire, Texas (c)
0044 Southgate S/C 70th @ Mansfield, Shreveport, Louisiana 240,957
0050 Westbury Triangle W. Bellfort @ Chimney Rock, Houston, Texas (a)
0052 Crossroads S/C Main @ E. 27th, North Little Rock, Arkansas (a)
0055 Lawndale S/C Lawndale @ 75th, Houston, Texas (a)
0059 Broadway Plaza S/C Broadway @ W. Roosevelt, Little Rock, Arkansas (a)
0061 Bellwood S/C Bellaire @ Kirkwood, Houston, Texas (a)
0064 Edgebrook S/C Edgebrook Drive @ Gulf Freeway, Houston, Texas (a)
0065 Westchase Mall Westheimer @ Wilcrest, Houston, Texas (c)
0066 Fondren Southwest Village Fondren @ W. Bellfort, Houston, Texas (a)
0071 Park Plaza S/C St. Hwy. 14 @ Gen. Doolittle Ave., Lake Charles, Louisiana 2,025,000 (a+)
0081 Northbrook S/C 34th @ NW Freeway (Hwy. 290), Houston, Texas (a)
0082 Geyer Springs S/C Geyer Springs @ Baseline, Little Rock, Arkansas (a)
0088 Cullen Plaza S/C Cullen @ Wilmington, Houston, Texas (a)
0089 Little York Plaza S/C Little York @ East Hardy, Houston, Texas (a)
0099 Braeswood Square S/C N. Braeswood Road @ Chimney Rock, Houston, Texas (a)
0104 Westmont S/C Phelan Boulevard @ Dowlen Road, Beaumont, Texas (b)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Property
Specific
LOC Property Location Debt
--- ------------------------- ---------------------------------------------------------- ----------
<S> <C> <C> <C>
0105 North Oaks S/C FM 1960 @ Stuebner Airline and Breck, Houston, Texas (c)
0106 Humblewood S/C FM 1960 @ Highway 59, Humble, Texas (c)
0107 Markham Square S/C W. Markham @ John Barrow, Little Rock, Arkansas (a)
0108 Orchard Green S/C Gulfton @ Renwick, Houston, Texas 1,287,271
0120 Randall's/Norchester Grant Road @ Jones Road, Houston, Texas (b)
Village
0122 Galveston Place 61st and Central City, Galveston, Texas 4,731,564
0123 Kroger/Fondren Square Fondren/West Airport, Houston, Texas (a)
0126 Town & County S/C 4th @ University Avenue, Lubbock, Texas (b)
0130 Rose-Rich S/C Avenue H @ Lane Drive, Rosenberg, Texas (a)
0136 Parkway Square S/C Southwest Parkway @ Texas Ave., College Station, Texas (a)
0466 Bayshore Plaza Spencer @ Burke, Pasadena, Texas (a)
0480 NW Park Plaza W. Montgomery @ Champions Forest, Houston, Texas (a)
0513 Bingle S/C NW Frwy. (Hwy. 290) @ Bingle, Houston, Texas (a)
0531 Randall's/Cypress Station FM 1960 @ I-45, Houston, Texas (b)
0537 San Pedro Building San Pedro Avenue, San Antonio, Texas (a)
0538 Weingarten Bandera Hwy. Bandera @ Hillcrest, San Antonio, Texas (a)
0578 Merilee S/C U.S. 80 @ Merilee, Arlington, Texas (a)
0632 Porterwood S/C Highway 59 @ Fm 1314, Porter, Texas (a)
0662 Orleans Station Paris @ Lee and Catham Drive, New Orleans, Louisiana (a)
0688 The Promenade S/C Lisbon @ Essex, Lewiston, Maine 678,411
0767 Westgate S/C Cantrell Road @ Bryant, Little Rock, Arkansas (a)
7110 North Main Place North Main St. @ Dell Court, Houston, Texas (a)
</TABLE>
<TABLE>
<CAPTION>
Industrial
----------
<S> <C> <C> <C>
0549 South Loop Business Park S. Loop @ Wayside, Houston, Texas 569,815
0557 Railwood Industrial Park Mesa Road @ Spikewood, Houston, Texas 1,552,346 (a+)
</TABLE>
<TABLE>
<CAPTION>
Residential
-----------
<S> <C> <C> <C>
0539 Hillcrest Apartments Bandera @ Hillcrest, San Antonio, Texas 1,126,163
0685 Southern Oaks Apartments Mansfield Rd., Shreveport, Louisiana 401,479
</TABLE>
(a) Property included in collateral pool of Texas Commerce Bank
(a+) Portion of Property included in collateral pool of Texas Commerce Bank;
Portion of Property has Specific Debt
(b) Property included in collateral pool of Barclays Bank
(c) Property included in collateral pool of American General
<PAGE>
Exhibit P To Note
Purchase Agreement
LIST OF SUBSIDIARIES OF THE TRUST
Jurisdiction of
Name of Subsidiary Organization
------------------ ------------
Weingarten/Lubbock, Inc. Texas
Weingarten/Southgate, Inc. Texas
Weingarten/Lufkin, Inc. Texas
Weingarten/Tennessee, Inc. Texas
Weingarten/Arkansas, Inc. Texas
Weingarten/Jones Road Company, Inc. Texas
Weingarten/Maine, Inc. Texas
Weingarten/Oklahoma, Inc. Texas
WRI/Bay City, Inc. Texas
Weingarten Properties Trust Texas
Weingarten Railspur, Inc. Texas
Amarillo Centers, Inc. Texas
Cypress/Westfield, Inc. Texas
Weingarten/Lufkin Theatre, Inc. Texas
Weingarten/New York, Inc. Texas
Weingarten/Village Arcade, Inc. Texas
Weingarten/Village Arcade II, Inc. Texas
WRI/Lathrop, Inc. Texas
WRI/Nederland, Inc. Texas
WRI/Puckett, Inc. Texas
WRI/SW Park II, Inc. Texas
Mesquite/Town East, Inc. Texas
Weingarten Realty Management Company Texas
Weingarten/Arizona, Inc. Texas
WRI/Bell, Inc. Texas
WRI/Ministorage, Inc. Texas
WTSC, Inc. Texas
WRI/Post Oak, Inc. Texas
P-1
<PAGE>
Exhibit Q To Note
Purchase Agreement
DESCRIPTION OF INSURANCE WITH
RESPECT TO THE MORTGAGED CENTERS
(1) Commercial general liability insurance with respect to each Center,
including comprehensive contractual, bodily injury, death and property damage
insurance (including but not limited to coverage for premises, explosion and
collapse hazards, underground property damage, sudden and accidental spillage or
leakage of hazardous material and broad form property damage), with limits of
not less than $1,000,000 for liability damages, injuries or death resulting from
any one occurrence, and the Holders listed as additional insureds.
(2) All-risk comprehensive property damage insurance, subject to a $100,000
deductible, covering physical loss or damage (including but not limited to that
caused by flood, fire, earthquake, subsidence, boiler and machinery explosion
and collapse) to the Buildings and Fixtures with respect to the tract of land
that is part of each Center or to the Personalty with respect to such Center,
with limits of no less than the replacement cost of such Buildings, Fixtures and
Personalty; and
(3) Business interruption or loss of rent insurance providing coverage for
each Center for a minimum of 12 months resulting from interruption of business
caused by damage to such Center or any part thereof and extra expenses incurred
to continue the normal operation of business following such damage.
Q-1
<PAGE>
Exhibit R To Note
Purchase Agreement
SUPPLEMENTAL DEED OF TRUST, ASSIGNMENT OF RENTS,
SECURITY AGREEMENT AND FINANCING STATEMENT
STATE OF TEXAS (S)
(S)
COUNTY OF [name of County (S)
in which New Collateral is located]
This Supplemental Deed of Trust, Assignment of Rents, Security Agreement and
Financing Statement (this "Mortgage") made as of [the Settlement Date] (the
"Effective Date"), by Weingarten Realty Investors, a Texas real estate
investment trust whose mailing address is 2600 Citadel Plaza Drive, Houston,
Texas 77008 (hereinafter called "Grantor"), to John Madsen, as trustee, whose
mailing address is c/o American General Corporation, 2929 Allen Parkway,
Houston, Texas 77019, and to any substitute or successor trustee as hereinafter
provided (all of whom shall be included within the term "Trustee"), for the use
and benefit of [names and addresses of the Holders as of the date of the
Supplemental Mortgage], as holders from time to time of the Notes (as that term
is hereinafter defined), and, after any transfer of one or more of the Notes
pursuant to (S)11 of the Note Purchase Agreement (as that term is hereinafter
defined), the subsequent holder or holders from time to time of the Notes (all
of whom shall be included within the term "Beneficiaries"), as beneficiaries,
assignees, and Secured Party (as that term is hereinafter defined), as more
fully hereinafter set forth.
W I T N E S S E T H:
WHEREAS, Grantor executed the Deed of Trust, Assignment of Rents, Security
Agreement and Financing Statement dated as of July 27, 1994 (the
["Mortgage/Original Mortgage"]), filed for record on July [ ], 1994, under Fort
Bend County Clerk's File No. [ ], and recorded under [ ] of the Official Records
of Fort Bend County, Texas, and filed for record on July [ ], 1994, under Harris
County Clerk's File No. [ ], and recorded under Film Code Reference No. [ ] of
the Official Public Records of Real Property of Harris County, Texas; and
[WHEREAS, Grantor executed the Supplemental Deed of Trust, Assignment of
Rents, Security Agreement and Financing Statement dated as of [ ] (the "Prior
Supplemental Mortgage"), filed for record on [ ], under [ ] County Clerk's File
No. [ ], and recorded under [ ] of the [ ] Records of [ ] County, Texas (the
Original Mortgage as supplemented by the Prior Supplemental Mortgage is herein
collectively referred to as the"Mortgage"); and]
R-1
<PAGE>
WHEREAS, Grantor desires to supplement the Mortgage by conveying additional
properties to the Trustee with the same powers of sale and upon all the terms
and conditions set forth in the Mortgage to the same extent as if those
additional properties had been originally described as part of the Mortgaged
Properties (as that term is defined in the Mortgage) when Grantor executed the
[Original] Mortgage;
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
ARTICLE I
OBLIGATIONS
(S)1.1 This Supplemental Mortgage is executed and delivered by Grantor to
secure the payment of:
(a) all amounts due and payable, or to become due and payable, pursuant to
Grantor's Variable Issue Senior Secured Notes (the "Notes") in the aggregate
original principal amount of not more than $30,000,000, issued and sold, or to
be issued and sold, in not more than six series pursuant to the Note Purchase
Agreement dated as of April 1, 1994 (together with any amendments thereto, the
"Note Purchase Agreement"), between Grantor and The Variable Annuity Life
Insurance Company and American General Life Insurance Company, each Note being
payable to one of the Beneficiaries as provided therein and in the Note Purchase
Agreement and finally maturing no later than its Maturity Date (as that term is
defined in the Note Purchase Agreement), which Maturity Date shall be no later
than February 27, 2015;
(b) all other amounts due and payable, or to become due and payable, by
Grantor to any Beneficiary pursuant to the Mortgage, this Supplemental Mortgage
or the Note Purchase Agreement;
(c) all amounts due and payable, or to become due and payable, by any
Guaranteeing Subsidiary (as that term is defined in the Note Purchase Agreement)
to any Beneficiary pursuant to any of the Guaranty Agreements (as that term is
defined in the Note Purchase Agreement); and
(d) all amounts due and payable, or to become due and payable, as a result of
any renewal, supplement, amendment, rearrangement, modification or extension of
any of the items of indebtedness described in this (S)1.1.
(S)1.2 Subject to the provisions of (S)5.6 of this Supplemental Mortgage, the
payment of the items of indebtedness described in (S)1.1 above is equally and
ratably secured by the lien, security interest and assignment of rents created
by this Supplemental Mortgage, without preference or priority of any Note of any
series over any other Note of the same or any other series; and the amounts
listed in (S)1.1 are hereinafter collectively called the "Obligations."
R-2
<PAGE>
ARTICLE II
GRANT OF ADDITIONAL MORTGAGED PROPERTIES
(S)2.1 For the purposes and trusts hereinafter set forth, and for $10.00 and
other valuable consideration paid to Grantor, the receipt and sufficiency of
which are hereby acknowledged, Grantor has GRANTED, BARGAINED, SOLD, CONVEYED,
CONFIRMED, WARRANTED, ASSIGNED AND TRANSFERRED, and by these presents does
irrevocably GRANT, SELL, BARGAIN, CONVEY, CONFIRM, WARRANT, ASSIGN and TRANSFER,
unto the Trustee, with power of sale, all the following described property, to
wit:
(a) all those certain tracts of land, each of which is situated in [name of
the County in which New Collateral is located] County, Texas, being more fully
described on Attachment A hereto, which is incorporated herein for all purposes;
(b) any and all buildings, open parking areas and other improvements, and any
and all additions, alterations, or appurtenances thereto, now or at any time
hereafter situated, placed or constructed upon such tracts of land or any part
thereof (collectively, the "Buildings");
(c) all of the Grantor's right, title and interest in and to all materials,
supplies, equipment, fixtures, apparatus and other items now or hereafter
attached to, installed in or located in or on (temporarily or permanently) any
portion of such tracts of land or any portion of the Buildings, including but
not limited to, any and all partitions, window screens and shades, drapes, rugs
and other floor coverings, awnings, motors, engines, boilers, furnaces, pipes,
plumbing, cleaning, call and sprinkler systems, fire extinguishing apparatus and
equipment, water tanks, swimming pools, heating, ventilating, plumbing, laundry,
incinerating, air conditioning and air cooling equipment and systems, gas and
electric machinery, appurtenances and equipment, disposals, dishwashers,
refrigerators and ranges, and recreational equipment and facilities of all kinds
(collectively, the "Fixtures");
(d) all of Grantor's right, title and interest in and to all tenements,
rights, easements, hereditaments, rights of way, privileges, liberties,
appendages and appurtenances belonging or in anywise appertaining to such tracts
of land, the Buildings or the Fixtures, or any part thereof [, including without
limitation recording information for title insured easements]; all of Grantor's
right, title and interest in and to all water, gas, oil, minerals, coal and
other substances of any kind or character underlying or relating to such tracts
of land or any part thereof; all of Grantor's right, title and interest in and
to any street, road, highway, or alley (vacated or otherwise) adjoining such
tracts of land or any part thereof; all of Grantor's right, title and interest
in and to all strips and gores belonging, adjacent or pertaining to such tracts
of land
R-3
<PAGE>
or any part thereof; and any after-acquired title of Grantor to any of the
foregoing (collectively, the "Appurtenances");
(e) subject to the rights of Beneficiaries under Article III below, all
existing and future leases, subleases in which Grantor has an interest, licenses
and other agreements for the use or occupancy of such tracts of land, the
Buildings, the Fixtures or the Appurtenances, or any part thereof, together with
all guarantees of any obligation of a lessee thereunder and together with all
extensions, modifications and renewals thereof, including without limitation the
leases described on Attachment B hereto, which is incorporated herein for all
purposes (collectively, the "Leases");
(f) subject to the rights of Beneficiaries under Article III below, all
income, receipts, security deposits, revenues, rents, issues and profits arising
from and out of the Leases, including without limitation store rents, minimum
rents, additional rents, percentage rents, parking and maintenance charges and
fees, tax and insurance contributions, proceeds from the sale of utilities and
services, cancellation premiums, and claims for damages arising from any breach
of such Leases (collectively, the "Rents");
(g) all of Grantor's right, title and interest in and to all contracts,
documents, instruments, general intangibles, chattel paper, and accounts
(including, without limitation, all service contracts and management contracts),
whether now or hereafter existing, arising out of or relating to the sale,
leasing, operation, ownership or management of such tracts of land, the
Buildings, the Fixtures or the Appurtenances, or any part thereof.
(h) all of Grantor's right, title and interest in and to all equipment,
machinery, goods, general intangibles, money, accounts, contract rights,
inventory and all other personal property (other than the Fixtures) of any kind
or character now or hereafter located upon, within or about such tracts of land,
the Buildings or the Fixtures, or any part thereof, together with all
accessories, replacements and substitutions thereto or therefor and the proceeds
thereof;
(i) all of Grantor's right, title and interest in and to any existing or
future award, awards, remuneration, settlements or compensation relating to such
tracts of land, the Buildings or the Fixtures, or any part thereof, that are
made or paid by any governmental authority, including without limitation those
made for vacation of, or change of grade in, any streets affecting such tracts
of land, the Buildings or the Fixtures, or any part thereof;
(j) all of Grantor's right, title and interest in and to any existing or
future licenses, permits, warranties, and wastewater discharge capacity
R-4
<PAGE>
attributable or allocable to such tracts of land, the Buildings or the Fixtures,
or any part thereof; and
(k) each and every right, privilege, hereditament, and appurtenance in anywise
incident or appertaining to the properties, both real and personal, described
above in this (S)2.1.
TO HAVE AND TO HOLD the hereinabove described properties, together with the
rights, privileges, and appurtenances thereto belonging (all of which
properties, rights, privileges and appurtenances are hereinafter collectively
called the "Additional Mortgaged Properties"), unto the said Trustee and to his
substitutes or successors forever, in the same manner and as part of the
Mortgaged Properties (as that term is defined in the Mortgage) subject to the
lien, security interest and assignment of rents created by the Mortgage as
supplemented by this Supplemental Mortgage (which lien, security interest and
assignment of rents are restated herein with respect to the Additional Mortgaged
Properties); and Grantor does hereby bind itself, its successors, assigns, and
legal representatives to warrant and forever defend all and singular the
Additional Mortgaged Properties unto the Trustee, his successors and assigns,
against every person whomsoever lawfully claiming or to claim the same, or any
part thereof, subject only to the matters (the "Approved Encumbrances") set
forth on Attachment C hereto, which is incorporated herein for all purposes.
(S)2.2 This conveyance, however, is intended as a deed of trust and security
agreement and is made upon the following trusts, terms, and conditions, to wit:
In the event Grantor shall well and truly perform and pay the Obligations to the
legal holder thereof when the same shall become due, then this Supplemental
Mortgage and all herein contained shall be null and void and Beneficiaries shall
cause this Supplemental Mortgage to be released at Grantor's cost and expense,
otherwise this Supplemental Mortgage shall continue in full force and effect;
provided, however, that Grantor's obligation to indemnify and hold harmless
Beneficiaries and Trustee pursuant to the provisions hereof with respect to
matters relating to any period of time during which this Supplemental Mortgage
is in effect shall survive any such payment or release.
(S)2.3 All of the powers of sale, powers of appointment and other rights of
Beneficiaries under the Mortgage shall extend and apply to the Additional
Properties as fully as though the Additional Properties had been originally a
part of the properties defined as the "Mortgaged Properties" in the Mortgage.
The Mortgage is hereby supplemented such that the term "Mortgaged Properties" as
used in the Mortgage shall include without limitation the Additional Property.
ARTICLE III
ASSIGNMENT OF RENTS
(S)3.1 To facilitate payment of the Obligations, Grantor hereby absolutely
transfers and assigns to Beneficiaries all right, title and interest of Grantor
in and to the Leases and the Rents, together with the immediate and continuing
right to receive all of the Rents. So long as no Event of Default exists, but
not otherwise, Grantor may collect and retain the currently accruing Rents, but
may not collect in excess of one (1)
R-5
<PAGE>
month's rental in advance or two (2) months' rental in advance where one such
month's rental is attributable to the next ensuing month and one such month's
rental is attributable to the last month in the lease term and is collected as
security under the provisions of a written lease or rental agreement. In the
event, however, any Event of Default shall occur and be continuing, thereupon or
any time thereafter, while such or any subsequent Event of Default continues,
Beneficiaries may, personally or through an agent selected by such holder, take,
or have the Trustee take, possession and control of the Additional Mortgaged
Properties, or any part thereof, and receive and collect all Rents, theretofore
accrued or thereafter accruing therefrom so long as any of the Obligations
remain outstanding or until the foreclosure of the lien hereof, applying so much
thereof as may be collected prior to the sale of such property under
foreclosure, first to the expenses incident to such possession, control, and
collection and second to the payment of the Obligations in the order set forth
in (S)5.6 below.
(S)3.2 In exercise of the rights and powers created under (S)3.1 above,
Grantor specifically agrees that Beneficiaries, Beneficiaries' agent, or the
Trustee, as such party may see fit, may: use against Grantor or any other
Persons (as that term is defined in the Note Purchase Agreement) lawful or
peaceable means to enforce the collection of any such Rents and to secure
possession of the Additional Mortgaged Properties, or any part thereof; settle
or compromise on any terms the liability of any Person or Persons for any such
Rents; institute and prosecute to final conclusion actions of forcible entry and
detainer, or actions of trespass to try title, or actions for damages, or any
other appropriate actions, in the name of such Person or in the name of Grantor;
and settle, compromise, or abandon any such actions. In furtherance of the
foregoing and not by way of limitation, Grantor binds itself to take whatever
lawful or peaceful steps Beneficiaries may ask it to take for such purposes,
including the institution and prosecution of actions of the character above
stated; provided, however, Grantor recognizes that neither the Trustee,
Beneficiaries, or any Person acting on behalf of Beneficiaries shall ever be
required to collect any such Rents or be liable or chargeable for failure so to
do.
(S)3.3 Beneficiaries shall not be obligated to perform or discharge, nor do
Beneficiaries hereby undertake to perform or discharge, any obligation, duty or
liability under the Leases, or under or by reason of this assignment, and
Grantor shall and does hereby agree to indemnify Beneficiaries against and hold
Beneficiaries harmless from any and all liability, loss or damage which it may
or might incur under the Leases or any of them or under or by reason of this
assignment and of and from any and all claims and demands whatsoever which may
be asserted against it by reason of any alleged obligation or undertaking on its
part to perform or discharge any of the terms, covenants or agreements contained
in any or all of the Leases.
ARTICLE IV
SECURITY AGREEMENT
(S)4.1 Without limiting any of the other provisions of this Supplemental
Mortgage, Grantor, as Debtor (referred to in this Article IV as "Debtor"),
expressly GRANTS unto Beneficiaries, as Secured Party (referred to in this
Article IV as "Secured Party," whether one or more), a security interest in all
the Additional Mortgaged
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Properties (including both those now and those hereafter existing) to the full
extent that the Additional Mortgaged Properties may be subject, to the extent
necessary or applicable, to the Uniform Commercial Code--Secured Transactions as
adopted in the State of Texas (Chapter 9, Business And Commerce Code of Texas,
as amended) (hereinafter called the "Uniform Commercial Code").
(S)4.2 Debtor covenants and agrees with Secured Party that:
(a) In addition to any other remedies granted in this Supplemental Mortgage to
Secured Party or the Trustee (including specifically, but not limited to, the
right to proceed against all the Additional Mortgaged Properties in accordance
with the rights and remedies in respect of that Additional Mortgaged Properties
which is real property pursuant to the Uniform Commercial Code), Secured Party
may, should an Event of Default occur and be continuing, proceed under the
Uniform Commercial Code as to all or any part of the personal property (tangible
or intangible) and fixtures included in the Additional Mortgaged Properties now
or hereafter acquired including, without limitation, all equipment, machinery,
fixtures and other personal property of every nature whatsoever located in, or
on, or attached or appurtenant to, and used or intended to be used in connection
with, the operation, occupancy, development or improvement of the Additional
Mortgaged Properties, and all buildings, structures, and other improvements
thereon, including without limitation machine tools, motors, controls,
attachments, heating, air conditioning, refrigeration, ventilation,
incineration, embalming or utility systems, parts, tools, furniture,
furnishings, shelves, racks, displays, appliances, drapes, and floor coverings,
whether now owned or in existence or hereafter arising or acquired; all policies
and certificates of insurance, insurance proceeds, condemnation proceeds or
awards, licenses and permits, whether now owned or in existence or hereafter
arising or acquired, arising from, used or held in connection with, or otherwise
relating to the Additional Mortgaged Properties; and all attachments,
accessories, accessions, replacements, substitutions, additions, improvements,
proceeds, and products of any and all of the foregoing (such portion of the
Additional Mortgaged Properties being referred to in this Article IV as the
"Collateral"), and shall have and may exercise with respect to the Collateral
all the rights, remedies, and powers of a secured party under the Uniform
Commercial Code, including, without limitation, the right and power to sell, at
one or more public or private sales, or otherwise dispose of, lease, or utilize
the Collateral and any part or parts thereof in any manner authorized or
permitted under the Uniform Commercial Code after default by a debtor, and to
apply the proceeds thereof toward payment of any costs and expenses and
reasonable attorneys' fees and legal expenses thereby incurred (whether or not
suit is brought or foreclosure is commenced) by Secured Party, and toward
payment of the Obligations in the order set forth in (S)5.6 below.
(b) Among the rights of Secured Party upon occurrence and continuation of an
Event of Default and without limitation, Secured Party shall have the right, by
any lawful means, to take possession of the Collateral or any part thereof and
to enter, in any lawful manner, upon any premises where same may be situated for
such purpose without being deemed guilty of trespass and without liability for
damages thereby occasioned, and to take any lawful action deemed necessary or
appropriate or desirable by Secured Party, at its option and in its discretion,
to repair, refurbish, or
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otherwise prepare the Collateral for sale, lease, or other use or disposition as
herein authorized.
(c) To the extent permitted by law, Debtor expressly waives any notice of sale
or other disposition of the Collateral and any other rights or remedies of a
debtor or formalities prescribed by law relative to sale or disposition of the
Collateral or exercise of any other right or remedy of Secured Party existing
after default hereunder; and, to the extent any such notice is required and
cannot be waived, Debtor agrees that, if such notice is mailed, postage prepaid,
to Debtor at the address set forth on the first page of this Supplemental
Mortgage at least ten (10) days before the time of the sale or disposition, such
notice shall be deemed reasonable and shall fully satisfy any requirement for
giving of said notice.
(d) Upon occurrence and during the continuation of an Event of Default,
Secured Party is hereby granted the express right, at its option, to transfer to
itself or to its nominee the Collateral, or any part thereof, to notify any
obligor or account debtor in the case of any Collateral to make payment directly
to Secured Party, and to receive the moneys, income, proceeds or benefits
attributable or accruing thereto and to hold the same as security for the
Obligations or to apply the same to amounts owing on the Obligations in the
order set forth in (S)5.6 below. With respect to the Collateral, Debtor, for
itself, its successors and assigns, hereby expressly and specifically waive all
rights to a marshalling of the assets of Debtor, including the Collateral, or to
a sale in inverse order of alienation.
(e) All recitals in any instrument of assignment or any other instrument
executed by Secured Party or by the Trustee incident to sale, transfer,
assignment, lease, or other disposition or utilization of the Collateral or any
part thereof hereunder shall be full proof of the matters stated therein, no
other proof shall be requisite to establish full legal propriety of the sale or
other action or of any fact, condition or thing incident thereto, and all
prerequisites of such sale or other action and of any fact, condition or thing
incident thereto shall be presumed conclusively to have been performed or to
have occurred.
(f) Secured Party may require Debtor to assemble the Collateral and make it
available to Secured Party at a place to be designated by Secured Party that is
reasonably convenient to both parties. Debtor shall be fully liable for all
expenses of retaking, holding, preparing for sale, lease or other use or
disposition, selling, leasing or otherwise using or disposing of the Collateral
which are incurred or paid by Secured Party as authorized or permitted
hereunder, including also all reasonable attorneys' fees, legal expenses, and
costs (whether or not suit is brought or foreclosure is commenced), the amount
of all of which expenses and costs shall constitute a part of the Obligations.
(g) Certain of the Collateral is or will become "fixtures" (as that term is
defined in the Uniform Commercial Code) on the real estate hereinabove described
and this Supplemental Mortgage upon being filed for record in the real estate
records shall operate also as a financing statement upon such of the Collateral
which is or may become fixtures. Debtor has an interest of record in the real
estate.
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(h) Any copy of this Supplemental Mortgage which is signed by Debtor or any
carbon, photographic, or other reproduction of this Supplemental Mortgage may
also serve as a financing statement under the Uniform Commercial Code by Debtor,
whose address is set forth on the first page of this Supplemental Mortgage, in
favor of Secured Party, whose address is also set out hereinabove.
ARTICLE V
CERTAIN REMEDIES; POWER OF SALE
(S)5.1 Upon the occurrence and during the continuation of an Event of Default
(as that term is defined in the Note Purchase Agreement), the Majority Holders
shall be entitled to have a court immediately appoint a receiver for all or any
portion of the premises constituting the Additional Mortgaged Properties (the
"Premises"), and Grantor hereby expressly consents to the appointment of such a
receiver. Any such appointment may be made either before or after sale, with
such notice, if any, as may be required by court rule or proceeding, and without
regard to the solvency or insolvency at the time of application for such
receiver of the person or persons, if any, liable for the payment of the
Obligations secured hereby, and without regard to the then value of the
Premises, and without bond being required of the applicant. Such receiver shall
have the power to take possession, control, and care of all or any portion of
the Premises and to collect the rents and profits of the Premises and, in case
of a sale and a deficiency, during the full statutory period of redemption, as
well as during any further times when Grantor, its successors or assigns, except
for the intervention of such receiver, would be entitled to collect such rents,
issues, and profits, and all other powers which may be necessary or are useful
in such cases for the protection, possession, control, management, and operation
of the Premises during the whole of said period. To the extent permitted by law,
the receiver may be authorized by the court to extend or modify any then
existing leases and to make new leases, which extensions, modifications, and new
leases may provide for terms to expire, or for options to lessees to extend or
renew terms to expire, beyond the maturity date of the indebtedness secured
hereunder. It is understood and agreed that any such leases and the options or
other such provisions authorized by such receiver shall be binding upon Grantor
and upon all persons whose interests in the Premises are subject to the lien
hereof, and upon the purchaser or purchasers from sale, discharge of the
indebtedness secured hereby, satisfaction of any foreclosure decree, or issuance
of any certificate of sale or deed to any purchaser.
(S)5.2 If an Event of Default arises out of Grantor's failure to pay any taxes
or assessments upon the Additional Mortgaged Properties before the same become
delinquent, or Grantor's failure to procure or maintain such insurance with
respect to the Additional Mortgaged Properties as is required by the Note
Purchase Agreement, or Grantor's failure to perform any other covenant of
Grantor set forth in (S)10 of the Note Purchase Agreement, then any Beneficiary,
at its option and without any obligation to do so, may pay any such taxes or
assessments (without being required to examine the legality of the same),
procure such insurance, or tender such performance. All amounts advanced by
Beneficiaries pursuant to this (S)5.2 shall be due and payable on demand, shall
become a part of the Obligations, shall bear interest from the date such
payments are advanced until the repayment thereof at a rate of 10% per annum
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and shall be fully secured by the lien, security interest and assignment of
rents created by the Mortgage as supplemented by this Supplemental Mortgage.
Grantor agrees that the payment of such taxes or assessments, or the procuring
and maintaining of such insurance, or the tendering of such performance by
Beneficiaries shall not prevent Beneficiaries from declaring the Obligations to
be due and payable by reason of the occurrence and continuation of such Event of
Default or pursuing any other remedies available to Beneficiaries.
(S)5.3 Upon the occurrence and during the continuation of an Event of Default,
it shall thereupon be the duty of the Trustee, or its successors, as hereinafter
provided, at the request of the Majority Holders (as defined in the Note
Purchase Agreement), to enforce this trust and to sell the Additional Mortgaged
Properties (with or without all or any part of the other properties then subject
to the lien, security interest and assignment of rents created by the Mortgage),
as an entirety or in parcels, by one sale or by several sales, held at one time
or at different times, all as the Trustee acting may elect, each sale to be held
at the location within the county courthouse designated for the holding of
nonjudicial foreclosure sales by the Commissioners Court of any county in which
a part of the real property to be sold is situated (or if no area has been so
designated, then in an area within said courthouse described in the notice
referred to in (S)5.4 and to be made on the first Tuesday of some month between
the hours of 10 o'clock a.m. and 4 o'clock p.m. to the highest bidder for cash
at public vendue, after the Trustee (or a Person or Persons selected by the
Trustee) and Beneficiaries shall have given notices of the proposed sale in the
manner hereinafter set forth, and to make due conveyance to the purchaser or
purchasers, with special warranty of title to such purchaser or purchasers
binding upon Grantor and its successors and assigns. Such sale must begin at the
time stated in the notice referred to in (S)5.4 or not later than three hours
after that time. Grantor, for itself, its successors and assigns, hereby
expressly and specifically waives all rights to a marshalling of the assets of
Grantor, including the Additional Mortgaged Properties, or to a sale in inverse
order of alienation.
(S)5.4 The Trustee (or a Person or Persons selected by the Trustee) shall give
notice of each such proposed sale by posting written notice of the time, place,
and terms of sale at the courthouse door, and by filing a copy of such written
notice in the office of the county clerk, of the county in which the sale is to
be made for at least twenty-one (21) consecutive days preceding the date of the
sale. Where real properties to be sold are situated in more than one county, one
notice shall be posted at the courthouse door, and a copy of such notice shall
be filed with the county clerk, of each county in which a part of the real
properties to be sold is situated, and such notices shall designate the county
where such real properties will be sold, which may be any county in which a part
of said real properties is situated. In addition to the foregoing notice or
notices to be posted and filed by the Trustee (or a Person or Persons selected
by the Trustee), Beneficiaries shall, at least twenty-one (21) days preceding
the date of sale, serve or cause to be served written notice of the proposed
sale by certified mail on each debtor obligated to pay such indebtedness
according to the records of Beneficiaries. The service of such notice shall be
completed upon deposit of the notice, enclosed in a postpaid wrapper, properly
addressed to each such debtor at the most recent address (which shall be within
the United States of America) as shown by the records of
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Beneficiaries, in a post office or official depository under the care and
custody of the United States Postal Service. The affidavit of any person having
knowledge of the facts to the effect that such notice was given shall be prima
facie thereof. In this respect and to the full extent it may legally do so,
Grantor also expressly covenants, stipulates, and agrees that: (i) the address
of Grantor set out on the first page of this Supplemental Mortgage shall be
deemed and considered conclusively to be and remain at all times the most recent
address of all debtors obligated to pay such indebtedness as shown by the
records of Beneficiaries, provided such address may be changed to some other
address within the United States of America from time to time only by express
written notice of change thereof signed by all debtors obligated to pay such
indebtedness sent by certified U.S. mail and actually delivered to and received
by Beneficiaries and setting forth a new address which shall be within the
United States of America and which shall be deemed and considered conclusively
to be and remain at all times thereafter the most recent address of all debtors
obligated to pay such indebtedness as shown by the records of Beneficiaries
until changed in the manner herein provided, (ii) the records of Beneficiaries
shall not be deemed to reflect any change in the name or identity of the debtors
obligated to pay the indebtedness (to whom notice of a proposed sale shall be
required to be mailed as provided for above) unless and until express written
notice of such change signed by all debtors obligated to pay such indebtedness
shall have been actually delivered to and received by Beneficiaries, and (iii)
no notice of sale or sales of the additional Mortgaged Properties other than the
notices hereinabove provided shall be required to be given to Grantor or any
other persons and any other notice is expressly waived.
(S)5.5 The provisions of (S)5.4 with respect to posting, serving, filing, and
giving notices of sale are intended to comply with the provisions of section
51.002 of the Property Code of the State of Texas (in this (S)5.5 such section
51.002 being called the "Subject Statute"). In the event the requirement for any
notice, or the posting, serving, filing, or giving thereof, under the Subject
Statute shall be eliminated or the prescribed manner of posting, serving,
filing, or giving same is modified by future amendment to the Subject Statute,
the requirement for such particular notice shall be stricken from, or the manner
of posting, serving, filing, or giving any notice hereunder modified in, this
Supplemental Mortgage in conformity with such amendment. The manner herein
prescribed for posting, serving, filing, or giving any notice, other than that
to be posted and filed or caused to be posted and filed by the Trustee, shall
not be deemed exclusive but such notice or notices may be posted, served, filed,
or given in any other manner which may be permitted by applicable law. Further,
in relation to this Supplemental Mortgage and the exercise of any power of sale
by the Trustee hereunder, if the Subject Statute shall be amended or modified to
require any other notice or the posting, filing, serving, or giving thereof or
if any other law shall require any other notice or the posting, filing, serving,
or giving thereof, the Trustee or the Person selected by him is hereby
authorized and empowered by Grantor to give such notice or make such posting,
filing, serving, or giving thereof, provided that Grantor waives such other
notice or the posting, filing, serving, or giving thereof to the full extent
Grantor may lawfully so do.
(S)5.6 At any sale conducted under the Mortgage as supplemented by this
Supplemental Mortgage, credit upon all or any part of the Obligations shall be
deemed cash paid for the purpose of (S)5.3; and any Beneficiary may purchase at
any such sale.
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The proceeds arising from such sale or sales, whether under the provisions of
this Article 5 or otherwise, shall be applied to the extent not prohibited by
applicable law: first, to the payment of the costs and expenses of such sale,
including reasonable commissions or compensation to the Trustee, its agents and
counsel, and of any judicial proceedings wherein the same may be made; second,
to the payment of the whole amount then owing on the Notes for accrued and
unpaid interest; third, to the payment of the whole amount then owing on the
Notes for the Note Default Premium; fourth, to the payment of the whole amount
then owing on the Notes for principal; fifth, to the payment of any other
Obligations; sixth, to the extent known by Beneficiaries, to the payment of any
obligation (other than the Obligations) the payment of which is secured by any
lien on or security interest in any of the additional Mortgaged Properties or
any other Mortgaged Properties sold at such sale; and seventh, to the payment of
the surplus, if any, to Grantor.
(S)5.7 Without limiting any of the powers or remedies provided elsewhere,
Grantor agrees that, in the event the Obligations include, at any time, amounts
which are then due and payable as well as amounts which are not yet then due and
payable, the Beneficiaries shall have the right to have the Additional Mortgaged
Properties sold, subject to the lien, security interest and assignment of rents
created by the Mortgage as supplemented by this Supplemental Mortgage securing
the part of the Obligations which is not due and payable at the time the Trustee
is requested to make such sale, at Trustee's sale to satisfy the lien and
security interest hereof securing the portion of the Obligations which is then
due and payable and the Trustee is expressly authorized and empowered to conduct
such sale which is called in this (S)5.7 "Installment Foreclosure." Any
Installment Foreclosure made under this (S)5.7 shall not affect the lien,
security interest and assignment of rents created by the Mortgage as
supplemented by this Supplemental Mortgage existing to secure that portion of
the Obligations to which the sale is to be made subject. No Installment
Foreclosure shall exhaust the power of the Trustee to conduct future Installment
Foreclosures nor in anywise limit the powers of sale provided elsewhere in this
Supplemental Mortgage. The provisions elsewhere in this Supplemental Mortgage
relating to manner of conducting Trustee's sales, including the posting, filing,
and giving of notices thereof, shall also apply to any Installment Foreclosure
and the same presumptions shall be applicable to any Trustee's deed or recital
therein contained in connection with an Installment Foreclosure and to any other
affidavit as hereinabove provided.
(S)5.8 In the case of the absence of the Trustee from the state, or of its
refusal or failure to act, or in the event the Majority Holders should elect at
any time (with or without cause) to remove the Trustee then acting, a successor
or substitute (the "Successor" or "Successor Trustee") may be named,
constituted, and appointed by the Majority Holders, without further formality
than an appointment and designation in writing, which appointment and
designation shall be full evidence of the right and authority to make the same
and of all facts therein recited; and this conveyance shall vest in the
Successor or Substitute Trustee the title, powers, and duties conferred on the
Trustee named herein and the conveyance by the Successor or Substitute Trustee
to the purchaser at any sale made pursuant hereto shall be valid and effective
as fully as hereinabove provided in the case of a conveyance by the Trustee.
Such right to appoint a Successor or Substitute Trustee shall exist as often as
and whenever the
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Trustee, original, successor, or substitute, cannot or will not act or has been
removed. Grantor specifically covenants and stipulates that: the recitals in the
conveyance made to the purchaser, either by the Trustee or any Successor or
Substitute Trustee, shall be full proof and evidence of the matters therein
stated; no other proof shall be requisite of the request by the Majority Holders
on the Trustee or on any Successor or Substitute Trustee to enforce this trust,
or of the due, timely, and proper posting, filing, and giving of all notices and
making of the sale, or any particulars thereof, or of the inability, refusal, or
failure of the Trustee or any Successor or Substitute Trustee to act, or of the
removal of the Trustee or any Successor or Substitute Trustee, or of the
appointment of a Successor or Substitute Trustee, as herein provided, either as
to the legality of its appointment or otherwise, or of the contingencies which
brought about the failure or inability of the Trustee or any Successor or
Substitute Trustee to act, or of its removal, as the case may be; all
prerequisites of said sale shall be presumed to have been performed; and any
sale made under the powers herein granted shall be a perpetual bar against
Grantor, its successors and assigns.
(S)5.9 The right of sale under the Mortgage as supplemented by this
Supplemental Mortgage shall not be exhausted by one or any sale, but, so long as
any of the Obligations remain unpaid, the Trustee or Successor or Substitute
Trustee may make other and successive sales until all the Mortgaged Properties
shall be legally sold. Beneficiaries may, at their option, institute appropriate
proceedings of foreclosure at law or in equity.
ARTICLE VI
MISCELLANEOUS
(S)6.1 Conflict of Law. In the event any item, term, or provision contained in
this Supplemental Mortgage is in conflict or may be held hereafter to be in
conflict with any applicable laws, this Supplemental Mortgage shall be affected
only as to its application to such item, term, or provision and shall in all
other respects remain in full force and effect.
(S)6.2 Headings. All article and section titles or captions contained in this
Supplemental Mortgage or in any schedule or exhibit hereto are for convenience
only and shall not be deemed a part of this Supplemental Mortgage and shall not
affect the meaning or interpretation of this Supplemental Mortgage.
(S)6.3 Usury. Grantor and Beneficiaries specifically intend and agree that
this Supplemental Mortgage is subject in all respects to (S)24 of the Note
Purchase Agreement which is hereby referred to and incorporated herein for all
purposes.
(S)6.4 No Impairment of SecuritY. Grantor agrees that no other security
(including without limitation the lien, security interest and assignment of
rents created by the Mortgage) now existing or hereafter taken, for the
Obligations shall be impaired or affected (other than, with respect to the
Mortgage, the addition of the Additional Mortgaged Properties to the properties
covered by the lien, security interest and assignment of rents created by the
Mortgage) in any manner by the execution hereof; no security subsequently taken
by any holder of the Notes shall impair or affect in any
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manner the security given by this Mortgage; all security for the payment of the
Obligations shall be taken, considered, and held as cumulative; and the taking
of additional security shall at no time release or impair any security by
endorsement or otherwise previously given. Grantor further agrees that any part
of the security herein described may be released without in anywise altering,
varying, or diminishing the force of, effect of, or lien, security interest and
assignment of rents created by, this Supplemental Mortgage, or of any renewal or
extension of said lien, security interest and assignment of rents, and that this
Supplemental Mortgage shall continue as a first lien, security interest and
assignment of rents on all the additional Mortgaged Properties not expressly
released until all Obligations are fully paid.
(S)6.5 Enforcement. The commencement of an action to foreclose any lien,
security interest or assignment under this Supplemental Mortgage either on any
matured portions of the Obligations or for all Obligations shall never be
considered an election so as to preclude foreclosure under any power of sale
herein contained after dismissal of the suit.
(S)6.6 Waivers. Grantor specifically waives any notice of the creation,
advancement, existence, extension or renewal of, or of any indulgence with
respect to, the Obligations, and any part thereof, and of non-payment thereof or
default thereon, and waives demand (including, but not by way of limitation,
demand for payment of an overdue installment), protest, presentment and notice
of demand, protest, presentment and notice of intent to accelerate maturity and
notice of acceleration of maturity with respect to the Obligations, and waives
notice of the amount of the Obligations outstanding at any time, and agrees that
the maturity of the Obligations, and any part thereof, may be accelerated,
extended or renewed by Beneficiaries without notice or consent by Grantor.
(S)6.7 No Waiver. Grantor agrees that no renewal or extension of, or any other
indulgence with respect to, the Obligations or any part thereof, no release of
any security (other than an express release of this Supplemental Mortgage), for
the payment of the Obligations or any part thereof, no release of Grantor or any
other Person primarily or secondarily liable for the payment of the Obligations
or any part thereof (including any maker, endorser, guarantor or surety), no
delay in enforcement of payment of the Obligations or any part thereof, and no
delay or omission or lack of diligence in exercising any right or power with
respect to the Obligations, or any other security therefor or guaranty thereof,
shall in any manner impair or affect the rights of Beneficiaries hereunder.
Grantor specifically agrees that it shall not be required, and that Grantor
shall not be entitled to require, that Beneficiaries file suit or proceed to
obtain a judgment against Grantor or any other Person or that Beneficiaries
proceed against or foreclose against or seek to realize upon any other security
now or hereafter existing for the payment of the Obligations or any part
thereof, or file suit or proceed to obtain a judgment against any other party
(maker, guarantor, endorser or surety) obligated to pay the Obligations before,
or as a condition to, or at any time after, foreclosing upon or otherwise
selling or disposing of or utilizing the additional Mortgaged Properties for the
purpose of paying the Obligations or any part thereof. Grantor expressly waives
any right to the benefit of or to require or control application of any other
security or the proceeds of any other security now existing or hereafter
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obtained by Beneficiaries from any Person other than the Grantor as security for
the payment of the Obligations.
(S)6.8 Waiver of Marshalling. To the extent that Grantor may lawfully do so,
Grantor hereby expressly waives any right pertaining to the marshalling of
assets, the exemption of homestead, the administration of estates of decedents,
or other matter to defeat, reduce or affect the right of Beneficiaries to
foreclose the additional Mortgaged Properties for the collection of the
Obligations (without any prior or different resort for collection), or the right
of Beneficiaries to the payment of the Obligations out of the proceeds of sale
of the additional Mortgaged Properties in preference to every other person and
claimant.
(S)6.9 Partial Invalidity. If any provision of this Supplemental Mortgage is
held to be illegal, invalid, or unenforceable under present or future laws
effective while this Supplemental Mortgage is in effect, the legality, validity
and enforceability of the remaining provisions of this Mortgage shall not be
affected thereby, and in lieu of each such illegal, invalid or unenforceable
provision there shall be added automatically as a part of this Mortgage a
provision that is legal, valid and enforceable and as similar in terms to such
illegal, invalid or unenforceable provision as may be possible.
(S)6.10 Usage of Terms. The term "Grantor" as used herein shall include not
only the party who is designated as Grantor and who executes this Supplemental
Mortgage but also the successors, legal representatives, and assigns of such
party, including without limitation any successor entity pursuant to (S)9.11 of
the Note Purchase Agreement. Whenever the context requires, the gender of words
used herein shall include the masculine, feminine, and neuter, and number of
words used herein shall include the singular and the plural.
(S)6.11 Governing Law. This Supplemental Mortgage shall be construed and
enforced in accordance with, and governed by, the laws of the State of Texas.
(S)6.12 Notices. All notices, consents, approvals, and other communications
required hereunder shall be in writing, and shall be given and deemed effective
as provided in (S)23 of the Note Purchase Agreement.
IN WITNESS WHEREOF, Grantor has executed this Supplemental Mortgage on the
date of the acknowledgment below to be effective for all purposes as of the
Effective Date.
WEINGARTEN REALTY INVESTORS
By:------------------------
Name: [Name of Officer]
Title: [Office of Officer]
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STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on [date of acknowledgment], by
[name of officer] (personally known to me), [office of officer] of Weingarten
Realty Investors, a Texas real estate investment trust, on behalf of said real
estate investment trust.
-----------------------
Notary Public Signature
(PERSONALIZED SEAL)
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Attachment A to
Supplemental Deed of Trust,
Assignment of Rents,
Security Agreement and
Financing Statement
Description of Tracts of Land
-----------------------------
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Attachment B to
Supplemental Deed of Trust,
Assignment of Rents,
Security Agreement and
Financing Statement
Description of Leases
---------------------
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Attachment C to
Supplemental Deed of Trust,
Assignment of Rents,
Security Agreement and
Financing Statement
Approved Encumbrances
---------------------
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Exhibit S To Note
Purchase Agreement
WEINGARTEN REALTY INVESTORS
OFFICERS' CERTIFICATE TO
REQUEST RELEASE FROM GUARANTY AGREEMENT
This certificate is delivered pursuant to (S)15(a) of the Note Purchase
Agreement dated as of April 1, 1994 (the "Agreement"), between Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), and The Variable
Annuity Life Insurance Company and American General Life Insurance Company. The
undersigned, [name of the Chairman of the Board of Trust Managers, the President
or one of the Executive Vice Presidents of the Trust], a/the [office of officer]
of the Trust, and [name of chief financial officer, chief accounting officer or
the Treasurer of the Trust], a/the [office of officer] of the Trust, hereby
certify on behalf of the Trust to each of the Holders as follows:
1. No condition or event exists that constitutes an Event of Default or
Potential Event of Default, and no other Officers' Certificate has been
delivered pursuant to (S)15 of the Agreement since the end of the most recently
ended fiscal quarter of the Trust.
2. Consolidated Total Assets at the end of the most recently ended fiscal
quarter of the Trust was $[Consolidated Total Assets].
3. The amount of Consolidated Total Assets at the end of such fiscal quarter
that is attributable to assets owned at the date hereof by the Trust or one or
more Guaranteeing Subsidiaries is $[such amount].
4. The name of the Guaranteeing Subsidiary for which a Release from Guaranty
is requested pursuant to this certificate is [name of such Guaranteeing
Subsidiary], and the jurisdiction of incorporation of such Guaranteeing
Subsidiary is [jurisdiction of incorporation of such Guaranteeing Subsidiary].
5. The amount of Consolidated Total Assets at the end of such fiscal quarter
that is attributable to assets owned at the date hereof by such Guaranteeing
Subsidiary is $[such amount].
6. The remainder obtained by subtracting $[amount stated pursuant to clause
(5) of this certificate] from $[amount stated pursuant to clause (3) of this
certificate] is greater than 75% of $[amount stated pursuant to clause (2) of
this certificate]. Therefore, the Trust hereby requests each of the Holders to
execute and deliver to the Trust a Release from Guaranty dated as of the date of
this
S-1
<PAGE>
certificate and substantially in the form of Exhibit T to the Agreement, with
appropriate insertions to identify such Guaranteeing Subsidiary as the Released
Subsidiary (as that term is defined in Exhibit T to the Agreement).
Capitalized terms used herein, and not otherwise defined, have the same
meanings as set forth in the Agreement.
Dated: [Date of delivery of such officers' certificate]
WEINGARTEN REALTY INVESTORS
By:------------------------
Name: [Name of Officer]
Title: [Office of Officer]
By:------------------------
Name: [Name of Officer]
Title: [Office of Officer]
S-2
<PAGE>
Exhibit T To Note
Purchase Agreement
RELEASE FROM GUARANTY
In reliance upon the representations made to the undersigned in the Officers'
Certificate delivered pursuant to (S)15(a) of the Note Purchase Agreement dated
as of April 1, 1994, between Weingarten Realty Investors (the "Trust") and The
Variable Annuity Life Insurance Company and American General Life Insurance
Company, the undersigned holder of one or more of the Trust's Variable Issue
Senior Secured Notes does hereby release and discharge [name of Guarantor], a
[state and form of organization of Guarantor] (the "Released Subsidiary"), from
any obligation or liability to the undersigned pursuant to the Agreement of
Guaranty dated as of [date of Guaranty Agreement], executed and delivered by the
Released Subsidiary.
Dated as of [date of Officers' Certificate pursuant to which Release from
Guaranty was requested].
[Name of Holder]
By:------------------------------
Name: [Name of Officer of Holder]
Title: [Office of Officer]
T-1
<PAGE>
Exhibit U To Note
Purchase Agreement
SUBORDINATION, NON-DISTURBANCE
AND ATTORNMENT AGREEMENT
THE STATE OF TEXAS (S)
(S)
COUNTY OF [County of Leased Premises] (S)
THIS AGREEMENT entered into as of [date at or after the date of execution of
(i) the Mortgage or (ii) the Supplemental Mortgage] (the "Effective Date"),
between [names of (i) the Purchasers or (ii) the Holders as of the Effective
Date] (collectively, the "Current Beneficiaries") and [name of Tenant], a [state
and form of organization of Tenant] ("Tenant");
W I T N E S S E T H:
WHEREAS, Weingarten Realty Investors ("Landlord") executed a Deed of Trust,
Assignment of Rents, Security Agreement and Fixture Filing (together with any
supplements thereto, the "Mortgage") to John Madsen, as trustee, filed or to be
filed for record in the Official Public Records of Real Property of Harris
County, Texas, and in the Official Records of Fort Bend County, Texas, and
creating a lien on the real property (the "Property") located in [County of
Leased Premises] County, Texas, and described on Attachment A hereto; and
WHEREAS, the Mortgage secures the payment of, among other amounts, the amounts
that become due and payable pursuant to Landlord's Variable Issue Senior Secured
Notes (the "Notes") in an aggregate principal amount of not more than
$30,000,000, issued and sold, or to be issued and sold, pursuant to the Note
Purchase Agreement dated as of April 1, 1994 (together with any amendments
thereto, the "Note Purchase Agreement"), between Landlord and The Variable
Annuity Life Insurance Company and American General Life Insurance Company,
payable as provided therein and in the Note Purchase Agreement, and with each
Note finally maturing no later than its Maturity Date (as defined in the Note
Purchase Agreement); and
WHEREAS, Tenant is the owner of the leasehold estate created under the Lease
Agreement dated [date of Lease] (together with any amendments thereto, the
"Lease"), executed between Landlord and Tenant, covering certain premises (the
"Leased Premises") more particularly described in the Lease and situated on the
Property, to which instrument reference is made for all purposes;
U-1
<PAGE>
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the Current Beneficiaries and Tenant hereby covenant and agree as
follows:
(1) So long as Tenant is not in default (beyond any period given Tenant under
the Lease to cure such default) in the payment of rent or other sums payable by
Tenant under the Lease or in the performance of any of the terms, covenants or
conditions of the Lease on Tenant's part to be performed, (i) Tenant's
possession of the Leased Premises and Tenant's rights and privileges under the
Lease, or any extension or renewal thereof that may be effected in accordance
with any option therefor in the Lease, shall not be diminished or interfered
with by the Beneficiaries (as used in this Agreement, the term "Beneficiaries"
has the meaning ascribed to such term in the Mortgage) and (ii) Tenant's
occupancy of the Leased Premises shall not be disturbed by the Beneficiaries
during the term of the Lease or of such extension or renewal.
(2) So long as Tenant is not in default (beyond any period given Tenant under
the Lease to cure such default) in the payment of rent or other sums payable by
Tenant under the Lease or in the performance of any of the terms, covenants or
conditions of the Lease on Tenant's part to be performed, the Beneficiaries will
not commence any action or proceeding for the purpose of terminating Tenant's
interest and estate under the Lease solely because of any default under the
Mortgage.
(3) If the interests of Landlord in the Property shall be transferred to and
owned by the Beneficiaries by reason of foreclosure or other proceedings brought
by Beneficiaries, or by reason of any other transaction, and the Beneficiaries
succeed to the interests of Landlord under the Lease, Tenant shall be bound to
the Beneficiaries under all of the terms, covenants and conditions of the Lease
for the balance of the term thereof and any extension or renewal thereof that
may be effected in accordance with any option therefor in the Lease, with the
same force and effect as if the Beneficiaries were the Landlord under the Lease,
and Tenant does hereby attorn to the Beneficiaries as Tenant's landlord, said
attornment to be effective and self-executing, without the execution of any
further instruments on the part of either party hereto, immediately upon the
succession by the Beneficiaries to the interests of Landlord under the Lease,
provided that Tenant shall be under no obligation to pay rent to the
Beneficiaries until Tenant receives written notice from the Beneficiaries that
(i) the Beneficiaries have succeeded to the interests of Landlord under the
Lease or (ii) the Beneficiaries have elected to receive and collect rents under
the Lease pursuant to the assignment of rents contained in the Mortgage. The
respective rights and obligations of Tenant and the Beneficiaries upon such
attornment, to the extent of the balance of the term of the Lease and any such
extensions and renewals shall be and are the same as now set forth in the Lease,
it being the
U-2
<PAGE>
intention of the parties hereto to incorporate the Lease in this Agreement by
reference with the same force and effect as if set forth herein.
(4) If the Beneficiaries shall succeed to the interests of Landlord under the
Lease, the Beneficiaries shall be bound to Tenant under all the terms, covenants
and conditions of the Lease, and Tenant shall, from and after the Beneficiaries'
succession to the interests of Landlord under the Lease, have the same remedies
against the Beneficiaries for the breach of an agreement contained in the Lease
that Tenant would have had under the Lease against Landlord if the Beneficiaries
had not succeeded to the interests of Landlord, provided that the Beneficiaries
shall not be:
(a) liable for any act or omission of Landlord; or
(b) subject to any right of offset or defenses that Tenant might have against
Landlord.
(5) Tenant covenants and agrees that the Lease is hereby, and shall at all
times continue to be, subordinate, secondary and inferior to the Mortgage and
the lien thereof and to any renewals, modifications, extensions, substitutions
or replacements of the Mortgage, and to any present or future mortgage that may
now or hereafter secure the payment of the amounts that become due and payable
pursuant to the Notes, but any renewals, modifications, extensions,
substitutions or replacements of the Mortgage, or any such other mortgage, shall
nevertheless be subject to and entitled to the benefit of this Agreement.
(6) This Agreement may not be modified other than by an agreement in writing
signed by the parties hereto or their respective successors in interest. This
Agreement shall inure to the benefit of and be binding upon the parties hereto,
and their respective successors and assigns, including without limitation any
subsequent Beneficiaries.
EXECUTED on the dates of the acknowledgments set forth below, to be effective,
however, for all purposes as of the Effective Date.
[Name of Tenant]
By-----------------------
Name: [Name of Officer]
Title: [Title of Officer]
[signature blocks for (i) the Purchasers or (ii) the
Holders as of the Effective Date]
U-3
<PAGE>
Landlord hereby consents to
this Agreement:
WEINGARTEN REALTY INVESTORS
By:-----------------------
Name: [Name of Officer]
Title: [Office of Officer]
THE STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
This instrument was acknowledged before me on [date of acknowledgment] by
[name of officer] (personally known to me), [office of officer] of Weingarten
Realty Investors, a real estate investment trust, on behalf of said real estate
investment trust.
(SEAL)
-----------------------------
Notary Public in and for
the State of Texas
-----------------------------
(Printed Name of Notary)
My commission expires:_______
[Insert form of acknowledgement for Tenant, and for each of (i) the Purchasers
or (ii) the Holders as of the Effective Date, in each case in the following
form:]
U-4
<PAGE>
THE STATE OF TEXAS (S)
(S)
COUNTY OF_________ (S)
This instrument was acknowledged before me on [date of acknowledgment] by
[name of officer], [office of officer] of [name of party], a [state and form of
organization], on behalf of said [form of organization.]
(SEAL)
-----------------------------
Notary Public in and for
the State of Texas
-----------------------------
(Printed Name of Notary)
My commission expires:_______
U-5
<PAGE>
Attachment A to Subordination,
Non-Disturbance and Attornment Agreement
Description of Property
U-6
<PAGE>
Exhibit V To Note
Purchase Agreement
TENANT ESTOPPEL CERTIFICATE
[date of certificate]
[names of (i) the Purchasers or (ii) the Holders
as of the date of this certificate]
c/o American General Corporation
2929 Allen Parkway
Houston, Texas 77019
Re: Lease Agreement dated [date of Lease] (as amended by the instruments,
if any, described on Attachment A hereto, the "Lease"), between
Weingarten Realty Investors ("Landlord") and [name of Tenant]
("Tenant")
Ladies and Gentlemen:
In connection with Landlord's Variable Issue Senior Secured Notes (the
"Notes") in an aggregate principal amount of not more than $30,000,000, issued
and sold, or to be issued and sold, pursuant to the Note Purchase Agreement
dated as of April 1, 1994 (the "Note Purchase Agreement"), between Landlord and
The Variable Annuity Life Insurance Company and American General Life Insurance
Company, Tenant hereby represents and warrants to each of you, and to each
subsequent Holder (as defined in the Note Purchase Agreement), that as of the
date hereof:
1. Tenant is the tenant under the Lease, is in actual possession of the
premises covered by the Lease, and is in compliance with its covenants,
agreements and obligations under the Lease.
2. The Lease is in full force and effect, and there are no amendments,
modifications or other agreements relating to the Lease except as stated on
Attachment A hereto. A true and complete copy of the Lease is attached hereto as
Attachment A.
3. Landlord is not in default under the Lease, and Tenant is not aware of any
facts that with notice or passage of time would constitute a default under, or a
breach of the terms or conditions of, the Lease.
4. Rent under the Lease is as set forth in the Lease, is payable in accordance
with the terms thereof, and has been paid through [date to which rent has been
paid at the date of this certificate]. Tenant has no right of offset or defenses
with respect to Tenant's obligations to pay rent under the Lease, except under
the
V-1
<PAGE>
conditions, if any, expressly set forth in the Lease, none of which conditions
has occurred and is continuing.
5. The Landlord holds a security deposit in the amount of $[amount of deposit]
pursuant to the Lease.
6. Tenant hereby confirms that the Lease term commenced [date of commencement
of Lease] and will terminate on [date of termination of Lease].
7. Tenant understands that you and each subsequent Holder will rely on this
estoppel certificate in purchasing the Notes held by you or by such Holder.
8. In the event of a default under the Lease, Tenant agrees to give written
notice of such default to the Holders, c/o American General Corporation, 2929
Allen Parkway, Houston, Texas 77019, Attention: Private Placements, and allow
the Holders 60 days from receipt of such notice within which to cure said
default. The Holders may elect to cure said default but shall have no obligation
to do so.
[Name of Tenant]
By:-----------------------
Name: [Name of Officer]
Title: [Office of Officer]
THE STATE OF TEXAS (S)
(S)
COUNTY OF_________ (S)
This instrument was subscribed, sworn to and acknowledged before me on [date
of acknowledgment] by [name of off1cer of Tenant], [office of officer] of [name
of Tenant], a [state and form of organization of Tenant], on behalf of said
[form of organization of Tenant].
(SEAL)
-----------------------------
Notary Public in and for
the State of Texas
-----------------------------
(Printed Name of Notary)
My commission expires:_______
V-2
<PAGE>
Attachment A To Tenant
Estoppel Certificate
[Copy of the Lease]
V-3
<PAGE>
Exhibit W To Note
Purchase Agreement
TITLE OPINION
[Letterhead of Andrews & Kurth L.L.P. or
other counsel acceptable to the Majority Holders]
[date determined by (S)(S)4.8(d), 5.10(c), 10.11(c), 13.4(b)2(iii) or
13.5(b)(iii) of the Agreement]
Re: Approximately [number of acres] acres of land, situated in [county of
Subject Property] County, Texas, more particularly described by metes and
bounds on Attachment A hereto, together with all Buildings and Fixtures (as
such terms are defined in the Note Purchase Agreement) with respect to such
tract of land (collectively, the "Subject Property").
[Names of (i) the Purchasers or (ii) the Holders
as of the date of the Title Opinion]
c/o American General Corporation
2929 Allen Parkway
Houston, Texas 77019
Ladies and Gentlemen:
This letter is being delivered to you at the request of Weingarten Realty
Investors, a Texas real estate investment trust (the "Trust"), pursuant to
(S)[4.8(d), 5.10(c), 10.11(c), 13.4(b)(2)(iii) or 13.5(b)(iii)] of the Note
Purchase Agreement dated as of April 1, 1994 (the "Note Purchase Agreement"),
between the Trust and The Variable Annuity Life Insurance Company and American
General Life Insurance Company.
For purposes of rendering the opinion expressed herein, we have examined each
of the following documents (the "Title Documents"):
W-1
<PAGE>
(a) the Owner Policy No. [ ] dated [ ], 19[ ] (the "Base Title Policy"),
issued by [ ] to the Trust, a copy of which is attached hereto as Attachment B;
(b) the Nothing Further Certificate dated [ ], 19[ ] (the "Nothing Further
Certificate"), issued by [ ] to you and the Trust and covering the time period
from [ ], [ ] to [ ], [ ], a copy of which is attached hereto as Attachment C;
(c) the Name Search Certificate dated [ ], 19[ ] (the "Name Search
Certificate"), issued by [ ] to you and the Trust, a copy of which is attached
hereto as Attachment D;
(d) [additional Nothing Further Certificates, if any];
(e) Certificate of Good Standing of the Trust dated [ ], 19[ ], issued by the
Secretary of State of the State of Texas;
(f) [copies of all documents of record set forth in the Nothing Further
Certificate[s]]; and
(g) [copies of all documents of record set forth in the Name Search
Certificate[s]].
In rendering the opinion expressed herein, we have relied exclusively on the
Title Documents, and we have assumed that as of the date of the Base Title
Policy, the insured named therein had good and indefeasible title to the Subject
Property. Further, we have assumed (i) the accuracy and completeness of the
information set forth in each of the Title Documents, (ii) the due
authorization, execution and delivery of each of the instruments described
therein, (iii) the genuineness of each of the Title Documents and of all
documents referred to in the Nothing Further Certificate, (iv) the accuracy of
the recitals and other statements of governmental officials contained therein,
and (v) that the Nothing Further Certificate accurately describes all
instruments affecting title to or encumbrances on the Subject Property for the
period covered by such Nothing Further Certificate and that such instruments are
genuine. For purposes of rendering that opinion, we have not reviewed any
surveys relating to the Subject Property. Although we have conducted no
investigation for the purpose of determining the genuineness of any Title
Document or the accuracy or completeness of the information set forth therein,
we have no actual knowledge of any material inaccuracy therein or that any Title
Document is incomplete in any material respect or that any Title Document is not
genuine. Although we may have represented persons, other than the Trust, in
connection with matters pertaining to the Subject Property, we have not reviewed
our files in connection with any such representation. Accordingly, the phrase
W-2
<PAGE>
"actual knowledge", as used herein, does not include any information obtained as
a result of such representation.
We advise you that the Nothing Further Certificate[s] and Name Search
Certificate[s] identified above cover a period ending before the date of this
letter, and we express no opinion with respect to any matter that would be
disclosed by an examination of public records for the period subsequent to the
time period covered by the Nothing Further Certificate[s] and Name Search
Certificate[s] through the date hereof. Although we have not investigated
whether the Trust has conveyed or encumbered the Subject Property during that
period, we have no actual knowledge of any such conveyance or encumbrance.
Based upon the foregoing and subject to the qualifications hereinafter set
forth, we are of the opinion that the Trust holds good and indefeasible record
title to the Subject Property, subject to the following:
[exceptions to title]
In rendering the opinion expressed herein, we express no opinion as to (i) the
acreage of the Subject Property, the location of the Subject Property, the
contiguousness of the lots or tracts of land that constitute the Subject
Property, or any other matter that a survey would disclose, (ii) rights of
parties-in-possession of the Subject Property or other rights created through
adverse possession of the Subject Property, (iii) easements, rights-of-way or
drainage ditches over, under, or across the Subject Property (or any part
thereof) that are not of record, or any other matter which an examination of the
Subject Property on the ground would disclose, (iv) the absence of liens on the
Subject Property to secure the payment of taxes, (v) the effect of governmental
police power (except to the extent that a notice of the exercise thereof or a
notice of a defect, lien or encumbrance resulting from a violation or alleged
violation affecting the Subject Property is identified in the Title Documents)
and any law, ordinance or governmental regulation restricting, regulating,
prohibiting or relating to (a) the occupancy, use, or enjoyment of the Subject
Property, (b) the character, dimensions or location of any improvement now or
hereafter erected on the Subject Property, or (c) environmental protection
(except to the extent that a notice of the enforcement thereof or a notice of a
defect, lien or encumbrance resulting from a violation or alleged violation
affecting the Subject Property is identified in the Title Documents), (vi) the
effect of any federal bankruptcy, state insolvency or other state or federal
creditor's rights laws on title to the Subject Property, (vii) the existence of
unfiled mechanic's or materialman's liens on the Subject Property, or (viii) any
encumbrances of record not revealed by the instruments examined in connection
with this opinion. Although we have made no investigation of such matters, we
have no actual knowledge of (i) any parties-in-possession of the Subject
Property (or any part thereof), other than the tenants in possession under
written leases executed by the Trust or its predecessor in title, or (ii) any
adverse possession of the Subject Property (or any part thereof).
The opinions expressed herein are for the sole benefit of, and may be relied
upon only by, each of you, your respective successors and assigns, and each
holder from
W-3
<PAGE>
time to time of any of the Trust's Variable Issue Senior Secured Notes issued
pursuant to the Note Purchase Agreement. Such reliance is limited to the
transactions contemplated by the Note Purchase Agreement, and the opinion
expressed herein is limited to the law existing on the date hereof. In rendering
that opinion, we do not undertake to advise any person of any change in law or
fact that may occur after the date hereof.
Very truly yours,
[Andrews & Kurth L.L.P. or other
counsel acceptable to the Majority Holders]
Attachments
W-4
<PAGE>
Attachment A to
Title Opinion
[Description of Subject Property]
W-5
<PAGE>
Attachment B to
Title Opinion
[Copy of Base Title Policy]
W-6
<PAGE>
Attachment C to
Title Opinion
[Copy of Nothing Further Certificate[s]]
W-7
<PAGE>
Attachment D to
Title Opinion
[Copy of Name Search Certificate[s]]
W-8
<PAGE>
Exhibit X To Note
Purchase Agreement
INDEMNITY AGREEMENT
This Indemnity Agreement made and entered into on [Closing Date], for the
benefit of The Variable Annuity Life Insurance Company and American General Life
Insurance Company (collectively, the "Purchasers") by Weingarten Realty
Investors, a Texas real estate investment trust (hereinafter called
"Indemnitor").
RECITALS
A. Purchasers are or will become the owners and holders of Promissory Notes
(hereinafter called the "Notes"), in the aggregate principal sum of not more
than $30,000,000, executed by Indemnitor and evidencing a loan by Purchasers to
Indemnitor (the "Loan").
B. The Notes are secured by a Deed of Trust, Assignment of Rents, Security
Agreement and Financing Statement (hereinafter called the "Deed of Trust"), of
even date therewith filed or to be filed in the Offices of the County Clerks of
Harris and Fort Bend Counties, Texas, as well as certain other security
instruments and agreements, including, without limitation, financing statements
(the Deed of Trust and such other security instruments hereinafter collectively
called the "Security Instruments"), covering the real property described on
Exhibit A attached hereto and incorporated herein (the "Property").
C. Certain portions of the improvements located on the Property (the
"Improvements") encroach onto a certain ten foot (10') building set back line
and into the right-of-way of Deauville Plaza Drive as shown on a survey of the
Property prepared by George Collison, R.P.S. No. 4461, of Terra Associates, Inc.
last dated June 19, 1994. Such encroachment hereinafter shall be called the
"Encroachment".
D. It is contemplated that the Encroachment may result in certain loss, cost
and expense to Purchasers, its successors or assigns, such loss, cost and
expense being entirely separate, independent of, and in addition to any loss
represented by the unpaid balance of the indebtedness evidenced by the Notes and
secured by the Security Instruments.
E. In order to induce Purchasers to enter into the Loan evidenced by the Notes
and secured by the Security Instruments, Indemnitor has agreed to indemnify and
hold harmless Purchasers, their successors or assigns, from any and all loss,
cost or expense incurred by Purchasers or their successors or assigns, in
connection with or arising out of the Encroachment under any circumstance.
NOW THEREFORE, Indemnitor hereby agrees as follows:
X-1
<PAGE>
1. Indemnitor agrees to save and hold Purchasers harmless, and to indemnify
Purchasers from any and all liability, loss, cost and expense, including without
limitation attorneys' fees and court costs, incurred by Purchasers resulting
from the Encroachment under any circumstance.
2. This Indemnity Agreement shall survive enforcement of the Deed of Trust and
the other Security Instruments, or acceptance of a deed in lieu of enforcement
thereof, or assignment to Purchasers of the Property or other collateral,
notwithstanding whole or partial satisfaction of the Notes, as stated or
implied, by law in or connected with enforcement of the Deed of Trust and the
other Security Instruments, a deed in lieu thereof, or assignment to Purchasers
of the Property or other collateral.
3. The obligations of this Indemnity Agreement are separate and independent of
the Notes and all instruments and agreements executed to evidence or secure said
Notes, or to guarantee payment thereof and will not be limited or reduced as a
result of any nonrecourse or exculpatory language in the Notes, the Deed of
Trust or any other of the Security Instruments.
4. Indemnitor further agrees to pay reasonable attorneys' fees should this
Indemnity Agreement be placed in the hands of an attorney for collection or
should it be collected through any Court.
5. This Indemnity Agreement pertains to the Property covered in the Deed of
Trust and the other Security Instruments, and shall continue unimpaired or
unaffected by a change in status of Indemnitor, or of transfer, assignment or
conveyance of the Property by Indemnitor.
6. This Indemnity Agreement shall inure to the benefit of any transferee,
assignee, or holder of the Note and to the benefit of any transferee or assignee
of Purchasers' interest (whether beneficial or fee simple title) in the
Property.
7. This Indemnity Agreement shall terminate upon payment in full of the Loan
or, if Purchasers or any other holder of the Notes should become the owner of
the Property through foreclosure or deed in lieu of foreclosure, upon the sale
or other disposition of the Property by Purchasers or such other holder for a
net amount which when added to any profit derived from operations during the
period Purchasers or such holder owned the Property is sufficient to recover in
full the principal balance of the Loan, plus interest on such balance at the
rate provided in the Notes and costs of collection.
8. In the event any terms, items or provisions contained in this Indemnity
Agreement are in conflict with the laws of the State of Texas, this Indemnity
Agreement shall be affected only as to its application to such terms, items or
provisions and shall in all other respects remain in full force and effect.
9. This Indemnity Agreement is performable in Harris County, Texas, and
Indemnitor waives the right to be sued elsewhere.
X-2
<PAGE>
10. This Indemnity Agreement may be executed in multiple counterparts, each of
which is to be deemed an original for all purposes, and all such counterparts
taken together shall be considered as one document.
WEINGARTEN REALTY INVESTORS
By:----------------------------
Name: Joseph W. Robertson, Jr.
Title: Executive Vice President
X-3
<PAGE>
Exhibit Y To Note
Purchase Agreement
INDEMNITY AGREEMENT
This Indemnity Agreement made and entered into on [Closing Date], for the
benefit of The Variable Annuity Life Insurance Company and American General Life
Insurance Company (collectively, the "Purchasers") by Weingarten Realty
Investors, a Texas real estate investment trust (hereinafter called
"Indemnitor").
RECITALS
A. Purchasers are or will become the owners and holders of Promissory Notes
(hereinafter called the "Notes"), in the aggregate principal sum of not more
than $30,000,000, executed by Indemnitor and evidencing a loan by Purchasers to
Indemnitor (the "Loan").
B. The Notes are secured by a Deed of Trust, Assignment of Rents, Security
Agreement and Financing Statement (hereinafter called the "Deed of Trust"), of
even date therewith filed or to be filed in the Offices of the County Clerks of
Harris and Fort Bend Counties, Texas, as well as certain other security
instruments and agreements, including, without limitation, financing statements
(the Deed of Trust and such other security instruments hereinafter collectively
called the "Security Instruments"), covering the real property described on
Exhibit A attached hereto and incorporated herein (the "Property").
C. Certain portions of the improvements located on the Property (the
"Improvements") encroach onto a certain ten foot (10') building set back line as
shown on a survey of the Property prepared by Lee A. Coburn, R.P.S. No. 3155, of
Coburn-Linseisen & Associates, Inc., last dated June 19, 1994. Such encroachment
hereinafter shall be called the "Encroachment".
D. It is contemplated that the Encroachment may result in certain loss, cost
and expense to Purchasers, its successors or assigns, such loss, cost and
expense being entirely separate, independent of, and in addition to any loss
represented by the unpaid balance of the indebtedness evidenced by the Notes and
secured by the Security Instruments.
E. In order to induce Purchasers to enter into the Loan evidenced by the Notes
and secured by the Security Instruments, Indemnitor has agreed to indemnify and
hold harmless Purchasers, their successors or assigns, from any and all loss,
cost or expense incurred by Purchasers or their successors or assigns, in
connection with or arising out of the Encroachment under any circumstance.
NOW THEREFORE, Indemnitor hereby agrees as follows:
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1. Indemnitor agrees to save and hold Purchasers harmless, and to indemnify
Purchasers from any and all liability, loss, cost and expense, including without
limitation attorneys' fees and court costs, incurred by Purchasers resulting
from the Encroachment under any circumstance.
2. This Indemnity Agreement shall survive enforcement of the Deed of Trust and
the other Security Instruments, or acceptance of a deed in lieu of enforcement
thereof, or assignment to Purchasers of the Property or other collateral,
notwithstanding whole or partial satisfaction of the Notes, as stated or
implied, by law in or connected with enforcement of the Deed of Trust and the
other Security Instruments, a deed in lieu thereof, or assignment to Purchasers
of the Property or other collateral.
3. The obligations of this Indemnity Agreement are separate and independent of
the Notes and all instruments and agreements executed to evidence or secure said
Notes, or to guarantee payment thereof and will not be limited or reduced as a
result of any nonrecourse or exculpatory language in the Notes, the Deed of
Trust or any other of the Security Instruments.
4. Indemnitor further agrees to pay reasonable attorneys' fees should this
Indemnity Agreement be placed in the hands of an attorney for collection or
should it be collected through any Court.
5. This Indemnity Agreement pertains to the Property covered in the Deed of
Trust and the other Security Instruments, and shall continue unimpaired or
unaffected by a change in status of Indemnitor, or of transfer, assignment or
conveyance of the Property by Indemnitor.
6. This Indemnity Agreement shall inure to the benefit of any transferee,
assignee, or holder of the Note and to the benefit of any transferee or assignee
of Purchasers' interest (whether beneficial or fee simple title) in the
Property.
7. This Indemnity Agreement shall terminate upon payment in full of the Loan
or, if Purchasers or any other holder of the Notes should become the owner of
the Property through foreclosure or deed in lieu of foreclosure, upon the sale
or other disposition of the Property by Purchasers or such other holder for a
net amount which when added to any profit derived from operations during the
period Purchasers or such holder owned the Property is sufficient to recover in
full the principal balance of the Loan, plus interest on such balance at the
rate provided in the Notes and costs of collection.
8. In the event any terms, items or provisions contained in this Indemnity
Agreement are in conflict with the laws of the State of Texas, this Indemnity
Agreement shall be affected only as to its application to such terms, items or
provisions and shall in all other respects remain in full force and effect.
9. This Indemnity Agreement is performable in Harris County, Texas, and
Indemnitor waives the right to be sued elsewhere.
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10. This Indemnity Agreement may be executed in multiple counterparts, each of
which is to be deemed an original for all purposes, and all such counterparts
taken together shall be considered as one document.
WEINGARTEN REALTY INVESTORS
By:-----------------------------
Name: Joseph W. Robertson, Jr.
Title: Executive Vice President
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