Page

ARTICLE I

DEFINITIONS

Section 1.01

Definitions

2

Section 1.02

Interpretation and Rules of Construction

10

ARTICLE II

THE MERGER

Section 2.01

Merger

11

Section 2.02

Operating Company Agreement

11

Section 2.03

Effective Time

11

Section 2.04

Closing

11

Section 2.05

Member and Officers of Surviving LLC

12

ARTICLE III

EFFECTS OF THE MERGER

Section 3.01

Effects on Shares and Membership Interests

12

Section 3.02

Effect on Units of Partnership Interest of the Operating Partnership

13

Section 3.03

Exchange of Certificates and Uncertificated Units; Paying Agent

14

Section 3.04

Withholding Rights

17

Section 3.05

Dissenters Rights

17

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Section 4.01

Organization and Qualification; Subsidiaries; Authority

18

Section 4.02

Organizational Documents

19

Section 4.03

Capitalization

19

Section 4.04

Authority Relative to this Agreement, Takeover Laws, Validity and Effect of Agreements

22

Section 4.05

No Conflict; Required Filings and Consents

22

Section 4.06

Permits; Compliance with Laws

23

Section 4.07

SEC Filings; Financial Statements; No Unknown Liabilities

23

Section 4.08

Absence of Certain Changes or Events

24

Section 4.09

Absence of Litigation

25

Section 4.10

Employee Benefit Plans

25

Section 4.11

Labor Matters

27

Section 4.12

Information Supplied

28

Section 4.13

Property and Leases

28

Section 4.14

Intellectual Property

32

Section 4.15

Taxes

33

Section 4.16

Environmental Matters

36

Section 4.17

Material Contracts

37

Section 4.18

Brokers

39

Section 4.19

Opinion of Financial Advisors

39

Section 4.20

Insurance

39

Section 4.21

Interested Party Transactions

39

Section 4.22

Investment Company Act of 1940

39

Section 4.23

Accounting Controls

39

Section 4.24

Inapplicability of Takeover Statutes and Certain Charter and Bylaw Provisions

40

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PARENT

AND MERGERSUB

Section 5.01

Organization

40

Section 5.02

Ownership of MergerSub; No Prior Activities

41

Section 5.03

Power and Authority

41

Section 5.04

No Conflict; Required Filings and Consents

41

Section 5.05

Information Supplied

42

Section 5.06

Absence of Litigation

42

Section 5.07

Available Funds

42

Section 5.08

No Ownership of Company Capital Stock

43

Section 5.09

Other Agreements or Understandings

43

Section 5.10

Brokers

43

ARTICLE VI

CONDUCT OF BUSINESS PENDING THE MERGER

Section 6.01

Conduct of Business by Company Pending the Merger

43

Section 6.02

Conduct of Business by Parent Pending the Merger

48

ARTICLE VII

ADDITIONAL AGREEMENTS

Section 7.01

Proxy Statement; Other Filings

48

Section 7.02

Company Stockholders Meeting

49

Section 7.03

Access to Information; Confidentiality

50

Section 7.04

No Solicitation of Transactions

50

Section 7.05

Employee Benefits Matters

53

Section 7.06

Directors and Offic