--------------------------------------------------------------------------------

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CREDIT AGREEMENT
 
Dated as of September 28, 2011
 
among
 
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP,
as the Borrower,
 
BANK OF AMERICA, N.A.,
 
as Administrative Agent, Swing Line Lender
 
and
 
L/C Issuer,
 
and
 
The Other Lenders Party Hereto
 
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
as
Sole Lead Arranger and Sole Book Manager
 
 
FIFTH THIRD BANK, AN OHIO BANKING CORPORATION
as
Syndication Agent
 

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TABLE OF CONTENTS
 
Section                                                                                                                                                       Page     
 
ARTICLE I. DEFINITIONS AND ACCOUNTING
TERMS.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
1
         
1.01
Defined
Terms.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
1
       
Applicable Margin for Eurodollar Loans/Letter of Credit
Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2
         
1.02
Other Interpretive
Provisions.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
26
 
1.03
Accounting
Terms...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
27
 
1.04
Rounding...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
28
 
1.05
Times of
Day.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
28
 
1.06
Letter of Credit
Amounts.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
28
       
ARTICLE II. THE COMMITMENTS AND CREDIT
EXTENSIONS ..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
28
         
2.01
Committed
Loans..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
28
 
2.02
Borrowings, Conversions and Continuations of Committed
Loans.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
28
 
2.03
Intentionally
Omitted........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
30
 
2.04
Letters of
Credit....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
30
 
2.05
Swing Line
Loans.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
38
 
2.06
Prepayments.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
40
 
2.07
Termination or Reduction of
Commitments.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
41
 
2.08
Repayment of
Loans............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
42
 
2.09
Interest...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
42
 
2.10
Fees.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
43
 
2.11
Computation of Interest and Fees; Retroactive Adjustments of Applicable
Rate.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
43
 
2.12
Evidence of
Debt..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
44
 
2.13
Payments Generally; Administrative Agent’s
Clawback................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
44
 
2.14
Sharing of Payments by
Lenders.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
46
 
2.15
Extension of Maturity
Date...................................................................................................................................................................................................................................................................................................................................................................................................... ..........................................................................................................................................................
47
 
2.16
Increase in
Commitments.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
48
 
2.17
Cash
Collateral.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
49
 
2.18
Defaulting
Lenders...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
50
       
ARTICLE III. TAXES, YIELD PROTECTION AND
ILLEGALITY...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
52
         
3.01
Taxes.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
52
 
3.02
Illegality..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
55
 
3.03
Inability to Determine
Rates................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
56
 
3.04
Increased Costs; Reserves on Eurodollar Rate
Loans....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
56
 
3.05
Compensation for
Losses....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
58
 
3.06
Mitigation Obligations; Replacement of
Lenders............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
59
 
3.07
Survival...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
59
       
ARTICLE IV. Borrowing
Base...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
59
         
4.01
Initial Borrowing
Base..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
59

 
 
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4.02
Changes in Borrowing Base
Calculation...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
59
 
4.03
Requests for Admission into Borrowing
Base..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
60
 
4.04
Eligibility................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
60
 
4.05
Approval of Borrowing Base
Properties............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
60
 
4.06
Liens on Borrowing Base
Properties.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
60
 
4.07
Notice of Admission of New Borrowing Base
Properties............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
60
 
4.08
Release of Borrowing Base
Property..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
60
 
4.09
Exclusion
Events................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
61
 
4.10
Documentation Required with Respect to Borrowing Base
Properties.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
62
       
ARTICLE V. CONDITIONS PRECEDENT TO CREDIT
EXTENSIONS.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
62
         
5.01
Conditions of Initial Credit
Extension................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
62
 
5.02
Conditions to all Credit
Extensions.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
64
       
ARTICLE VI. REPRESENTATIONS AND
WARRANTIES.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
65
         
6.01
Existence, Qualification and
Power.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
65
 
6.02
Authorization; No
Contravention.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
65
 
6.03
Governmental Authorization; Other
Consents................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
65
 
6.04
Binding
Effect.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
65
 
6.05
Financial Statements; No Material Adverse
Effect...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
66
 
6.06
Litigation.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
66
 
6.07
No
Default...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
66
 
6.08
Ownership of Property;
Liens..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
66
 
6.09
Environmental
Compliance...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
67
 
6.10
Insurance.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
67
 
6.11
Taxes........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
67
 
6.12
ERISA
Compliance................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
67
 
6.13
Subsidiaries; Equity
Interests..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
68
 
6.14
Margin Regulations; Investment Company
Act...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
68
 
6.15
Disclosure...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
68
 
6.16
Compliance with
Laws..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
69
 
6.17
Taxpayer Identification
Number..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
69
       
ARTICLE VII. AFFIRMATIVE
COVENANTS....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
69
         
7.01
Financial
Statements.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
70
 
7.02
Certificates; Other
Information............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
72
 
7.03
Notices....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
73
 
7.04
Payment of
Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
73
 
7.05
Preservation of Existence,
Etc..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
73
 
7.06
Maintenance of
Properties...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
73
 
7.07
Maintenance of
Insurance....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
73
 
7.08
Compliance with
Laws..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
73
 
7.09
Books and
Records................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
73
 
7.10
Inspection
Rights..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
74
 
7.11
Use of
Proceeds.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
74
 
7.12
Borrowing Base
Properties...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
74
 
7.13
Subsidiary Guarantor Organizational
Documents.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
74

 
 
 
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7.14
Additional
Guarantors.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
75
 
7.15
Environmental
Matters........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
75
 
7.16
REIT Status; New York Stock Exchange
Listing............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
75
       
ARTICLE VIII. NEGATIVE
COVENANTS.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
75
         
8.01
Liens.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
76
 
8.02
Investments........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
76
 
8.03
Fundamental
Changes......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
78
 
8.04
Dispositions..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
78
 
8.05
Restricted
Payments............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
78
 
8.06
Change in Nature of
Business............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
79
 
8.07
Transactions with
Affiliates............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
79
 
8.08
Burdensome
Agreements...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
79
 
8.09
Use of
Proceeds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
79
 
8.10
Borrowing Base
Properties................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
80
 
8.11
RESERVED............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
80
 
8.12
RESERVED.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
80
 
8.13
Negative Pledge;
Indebtedness..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
80
 
8.14
Financial
Covenants..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
81
       
ARTICLE IX. EVENTS OF DEFAULT AND
REMEDIES.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
81
         
9.01
Events of
Default.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
81
 
9.02
Remedies Upon Event of
Default.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
83
 
9.03
Application of
Funds...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
84
       
ARTICLE X. ADMINISTRATIVE
AGENT.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
85
         
10.01
Appointment and
Authority............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
85
 
10.02
Rights as a
Lender................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
85
 
10.03
Exculpatory
Provisions.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
85
 
10.04
Reliance by Administrative
Agent.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
86
 
10.05
Delegation of
Duties............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
87
 
10.06
Resignation of Administrative
Agent................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
87
 
10.07
Non-Reliance on Administrative Agent and Other
Lenders..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
88
 
10.08
No Other Duties,
Etc............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
88
 
10.09
Administrative Agent May File Proofs of
Claim..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
88
 
10.10
Collateral and Guaranty
Matters........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
89
       
ARTICLE XI.
MISCELLANEOUS........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
89
         
11.01
Amendments,
Etc.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
89
 
11.02
Notices; Effectiveness; Electronic
Communication.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
91
 
11.03
No Waiver; Cumulative Remedies;
Enforcement............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
93
 
11.04
Expenses; Indemnity; Damage
Waiver............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
94
 
11.05
Payments Set
Aside............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
95
 
11.06
Successors and
Assigns.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
96
 
11.07
Treatment of Certain Information;
Confidentiality.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
100
 
11.08
Right of
Setoff....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
101
 
11.09
Interest Rate
Limitation........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
101

 
 
 
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11.10
Counterparts; Integration;
Effectiveness.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
102
 
11.11
Survival of Representations and
Warranties............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
102
 
11.12
Severability..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
102
 
11.13
Replacement of
Lenders...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
102
 
11.14
Governing Law; Jurisdiction;
Etc................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 
103
 
11.15
Waiver of Jury
Trial......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
104
 
11.16
No Advisory or Fiduciary
Responsibility................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
104
 
11.17
Electronic Execution of Assignments and Certain Other
Documents................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 
105
 
11.18
USA PATRIOT
Act.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
105
 
11.19
ENTIRE
AGREEMENT................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 
105
       
 
    SIGNATURES
..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
S-1

 
 
 
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SCHEDULES
 
1.01 (A)       
Commitments and Applicable Percentages
1.01(B)       
Guarantors
1.01(C)       
SunChamp Collateral
1.01(D)       
SunChamp Property Owner Entities
1.01(E)       
Existing Letters of Credit
1.01(F)       
Equity Interest Collateral
1.01(G)       
Mortgage Assignments
4.01          
Initial Borrowing Base Properties
6.06          
Litigation
6.09          
Environmental Matters
6.13          
Subsidiaries; Other Equity Investments; Equity
6.17          
Loan Parties’ Taxpayer Identification Numbers
8.01          
Existing Liens
11.02         
Administrative Agent’s Office; Certain Addres

 
EXHIBITS
 
A           
Form of Committed Loan Notice
B           
Form of Swing Line Loan Notice
C           
Form of Note
D           
Form of Compliance Certificate
E-1         
Form of Assignment and Assumption
E-2         
Form of Administrative Questionnaire
F           
Opinion Matters
G           
Borrowing Base Report

 
 
 
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CREDIT AGREEMENT
 
This CREDIT AGREEMENT (“Agreement”) is entered into as of September 28, 2011
among Sun Communities Operating Limited Partnership, a Michigan limited
partnership (the “Borrower”), each of the Loan Parties from time to time party
hereto, each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative Agent,
Swing Line Lender and L/C Issuer, and Merrill Lynch, Pierce, Fenner & Smith
Incorporated as Sole Lead Arranger and Sole Book Manager.
 
The Borrower has requested that the Lenders provide a revolving credit facility,
and the Lenders are willing to do so on the terms and conditions set forth
herein.
 
In consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:
 
ARTICLE I.  DEFINITIONS AND ACCOUNTING TERMS
 
1.01 Defined Terms
 
.  As used in this Agreement, the following terms shall have the meanings set
forth below:
 
“Adjusted EBITDA” means EBITDA for the Consolidated Group for the most recently
ended period of four fiscal quarters minus the aggregate Annual Capital
Expenditure Adjustment.
 
“Administrative Agent” means Bank of America in its capacity as administrative
agent under any of the Loan Documents, or any successor administrative agent.
 
“Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.02, or such other address or
account as the Administrative Agent may from time to time notify to the Borrower
and the Lenders.
 
“Administrative Questionnaire” means an Administrative Questionnaire in
substantially the form of Exhibit E-2 or any other form approved by the
Administrative Agent.
 
“Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified.
 
“Aggregate Commitments” means the Commitments of all the Lenders.
 
“Agreement” means this Credit Agreement.
 
“Annual Capital Expenditure Adjustment” means for each Property, $50 per Site.
 
“Applicable Percentage” means with respect to any Lender at any time, the
percentage (carried out to the ninth decimal place) of the Aggregate Commitments
represented by such Lender’s Commitment at such time, subject to adjustment as
provided in Section 2.18.  If the
 
 
 
1

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commitment of each Lender to make Loans and the obligation of the L/C Issuer to
make L/C Credit Extensions have been terminated pursuant to Section 9.02 or if
the Aggregate Commitments have expired, then the Applicable Percentage of each
Lender shall be determined based on the Applicable Percentage of such Lender
most recently in effect, giving effect to any subsequent assignments.  The
initial Applicable Percentage of each Lender is set forth opposite the name of
such Lender on Schedule 1.01(A) or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.
 
“Applicable Rate” means the following percentages per annum, based upon the
Leverage Ratio as set forth in the most recent Compliance Certificate received
by the Administrative Agent pursuant to Section 7.02(a):
 
Level
Leverage Ratio
Applicable Margin for Eurodollar Loans/Letter of Credit Fees
Applicable Margin for Base Rate Loans
1
< 55%
2.25%
1.25%
2
≥ 55% but < 60%
2.50%
1.50%
3
≥ 60% but < 65%
2.75%
1.75%
4
≥ 65% but ≤ 70%
2.95%
1.95%

 
Any increase or decrease in the Applicable Rate resulting from a change in the
Leverage Ratio shall become effective as of the first Business Day immediately
following the date a Compliance Certificate is delivered pursuant to Section
7.02(a); provided, however, that if a Compliance Certificate is not delivered
when due in accordance with such Section and such failure continues for five (5)
days, then, upon the request of the Required Lenders, Pricing Level 4 shall
apply as of the first Business Day after the date on which such Compliance
Certificate was required to have been delivered and shall remain in effect until
the date on which such Compliance Certificate is delivered.  The Applicable Rate
in effect as of the Closing Date shall be determined based upon Pricing Level 3.
 
“Approved Fund” means any Fund that is administered or managed by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.
 
“Arranger” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, in its
capacity as sole lead arranger and sole book manager.
 
“Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.
 
“Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required
by Section 11.06(b)), and accepted by the Administrative Agent, in substantially
the form of Exhibit E-1 or any other form approved by the Administrative Agent.
 
“Attributable Indebtedness” means, on any date, (a) in respect of any capital
lease of any Person, the capitalized amount thereof that would appear on a
balance sheet of such Person
 
 
 
2

--------------------------------------------------------------------------------

 
 
prepared as of such date in accordance with GAAP, and (b) in respect of any
Synthetic Lease Obligation, the capitalized amount of the remaining lease
payments under the relevant lease that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP if such lease were
accounted for as a capital lease.
 
“Audited Financial Statements” means the audited consolidated balance sheet of
the Parent and its Subsidiaries for the fiscal year ended December 31, 2010, and
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of the Parent and its Subsidiaries,
including the notes thereto.
 
“Availability Period” means the period from and including the Closing Date to
the earliest of (a) the Maturity Date, (b) the date of termination of the
Aggregate Commitments pursuant to Section 2.07, subject to the rescission right
contained therein, and (c) the date of termination of the commitment of each
Lender to make Loans and of the obligation of the L/C Issuer to make L/C Credit
Extensions pursuant to Section 9.02.
 
“Bank of America” means Bank of America, N.A. and its successors.
 
“Base Rate” means for any day a fluctuating rate per annum equal to the highest
of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect
for such day as publicly announced from time to time by Bank of America as its
“prime rate,” and (c) the one-month Eurodollar Rate plus 1.00%.  The “prime
rate” is a rate set by Bank of America based upon various factors including Bank
of America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate.  Any change in such prime rate
announced by Bank of America shall take effect at the opening of business on the
day specified in the public announcement of such change.
 
“Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.
 
“Base Rate Loan” means a Loan that bears interest based on the Base Rate.
 
“Borrower” has the meaning specified in the introductory paragraph hereto.
 
“Borrower Materials” has the meaning specified in Section 7.02.
 
“Borrowing” means a Committed Borrowing or a Swing Line Borrowing, as the
context may require.
 
“Borrowing Base Availability” means the lesser of: (a) 60% of the Borrowing Base
Amount; or (b) the Mortgageability Amount.
 
“Borrowing Base Amount” means an amount equal to the aggregate Capitalized Value
of all Borrowing Base Properties, determined quarterly.
 
“Borrowing Base NOI” means, at any time with respect to any real property asset
owned by any Person, if owned for at least twelve (12) months, the Net Operating
Income from such real property asset for the trailing twelve months; if owned
for at least one fiscal quarter but less
 
 
3

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 than twelve months, the Net Operating Income from such real property asset for
the most recent fiscal quarter times four; and if owned for less than one fiscal
quarter, the Net Operating Income from such real property asset for most recent
quarter of historical financials times four. For the avoidance of doubt, the Net
Operating Income of a real property asset that is sold by a Person within the
trailing twelve months will be excluded in calculating Borrowing Base NOI.  For
the purposes of calculating Borrowing Base NOI:
 
(a)  no single Borrowing Base Property may account for greater than twenty
percent (20%) of the aggregate Borrowing Base NOI, with any excess over such
limit being deducted from the aggregate Borrowing Base NOI.
 
(b)  no more than twenty-five percent (25%) of the aggregate Borrowing Base NOI
may be in respect of Borrowing Base Properties that are located in any one
metropolitan statistical area, as defined by the U.S. Office of Management and
Budget, with any excess over such limit being deducted from the aggregate
Borrowing Base NOI.
 
(c)  no more than fifteen percent (15%) of the aggregate Borrowing Base NOI may
be from recreational vehicle communities with any excess over such limit being
deducted from the aggregate Borrowing Base NOI.
 
“Borrowing Base Property” means a Property or any of the SunChamp Properties
that is designated as such by the Borrower and is an Eligible Property.
 
“Borrowing Base Report” means a report in substantially the form of Exhibit G
(or such other form approved by Administrative Agent) certified by a Responsible
Officer of Borrower.
 
“Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and, if
such day relates to any Eurodollar Rate Loan, means any such day that is also a
London Banking Day.
 
“Capitalization Rate” means 7.75%.
 
                “Capitalized Value” means at any time and with respect to any
Borrowing Base Property, the Borrowing Base NOI minus the Annual Capital
Expenditure Adjustment but calculated exclusively with respect to such Borrowing
Base Property divided by the Capitalization Rate.
 
“Cash Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the Administrative Agent, L/C Issuer or
Swing Line Lender (as applicable) and the Lenders, as collateral for L/C
Obligations, Obligations in respect of Swing Line Loans, or obligations of
Lenders to fund participations in respect of either thereof (as the context may
require), cash or deposit account balances or, if the L/C Issuer or Swing Line
Lender benefitting from such collateral shall agree in its sole discretion,
other credit support, in each case pursuant to documentation in form and
substance satisfactory to (a) the Administrative Agent and (b) the L/C Issuer or
the Swing Line Lender (as applicable). “Cash Collateral” shall have a meaning
correlative to the foregoing and shall include the proceeds of such cash
collateral and other credit support.
 
 
 
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“Change in Law” means the occurrence, after the date of this Agreement, of any
of the following: (a) the adoption or taking effect of any law, rule, regulation
or treaty, (b) any change in any law, rule, regulation or treaty or in the
administration, interpretation, implementation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, rule,
guideline or directive (whether or not having the force of law) by any
Governmental Authority; provided that notwithstanding anything herein to the
contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all requests, rules, guidelines or directives thereunder or issued in connection
therewith and (y) all requests, rules, guidelines or directives promulgated by
the Bank for International settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States
regulatory authorities, in each case pursuant to Basel III, shall in each case
be deemed to be a “Change in Law”, regardless of the date enacted, adopted or
issued.
 
“Change of Control” means an event or series of events by which:
 
(a)           during any period of 12 consecutive months, a majority of the
members of the board of directors or other equivalent governing body of the
Parent cease to be composed of individuals (i) who were members of that board or
equivalent governing body on the first day of such period, (ii) whose election
or nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent governing
body or (iii) whose election or nomination to that board or other equivalent
governing body was approved by individuals referred to in clauses (i) and (ii)
above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body (excluding, in the case of
both clause (ii) and clause (iii), any individual whose initial nomination for,
or assumption of office as, a member of that board or equivalent governing body
occurs as a result of an actual or threatened solicitation of proxies or
consents for the election or removal of one or more directors by any person or
group other than a solicitation for the election of one or more directors by or
on behalf of the board of directors).
 
(b)           the Parent fails at any time to own, directly or indirectly, at
least 70% of the Equity Interests of each other Loan Party, free and clear of
all Liens (other than the Liens in favor of the Administrative Agent), or ceases
to be the general partner of the Borrower or ceases to Control all management
and financial decisions of each Loan Party.
 
(c)           the Borrower fails at any time to own, directly or indirectly, 99%
of the Equity Interests of each other Loan Party, free and clear of all Liens
(other than the Liens in favor of the Administrative Agent.
 
(d)           the Borrower fails at any time to own, directly or indirectly, at
least 75% of the Equity Interests of each of the SunChamp Property Owner
Entities, free and clear of all Liens (other than the Liens in favor of the
Administrative Agent, if any).
 
“Closing Date” means the first date all the conditions precedent in Section
5.01 are satisfied or waived in accordance with Section 11.01.
 
 
 
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“Code” means the Internal Revenue Code of 1986.
 
“Collateral” means the Equity Interest Collateral, the Mortgage Assignments, and
all other property of the Pledgors on which Liens have been granted to
Administrative Agent, for the benefit of the Lenders, to secure the Obligations.
 
“Commitment” means, as to each Lender, its obligation to (a) make Committed
Loans to the Borrower pursuant to Section 2.01, (b) purchase participations in
L/C Obligations, and (c) purchase participations in Swing Line Loans, in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name on Schedule 1.01(A) or in the Assignment
and Assumption pursuant to which such Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with
this Agreement.
 
“Committed Borrowing” means a borrowing consisting of simultaneous Committed
Loans of the same Type and, in the case of Eurodollar Rate Committed Loans,
having the same Interest Period made by each of the Lenders pursuant to Section
2.01.
 
“Committed Loan” has the meaning specified in Section 2.01.
 
“Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a
conversion of Committed Loans from one Type to the other, or (c) a continuation
of Eurodollar Rate Committed Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A.
 
“Compliance Certificate” means a certificate substantially in the form of
Exhibit D.
 
“Consolidated Group” means the Loan Parties and their consolidated Subsidiaries.
 
“Construction in Progress” means each formerly unimproved Real Property or
portion thereof at which new site improvements have commenced.  Site
improvements include, but are not limited to, land development, installation of
roads, utilities, or other infrastructure developments and the development of
new homesites.  A Real Property or portion thereof will cease to be classified
as “Construction in Progress” on the earlier to occur of (A) the time that such
Real Property or portion thereof has an occupancy rate of greater than
seventy-five percent (75%), (B) one hundred eighty (180) days after completion
of site improvements at such Real Property or portion thereof, or (C) such Real
Property or portion thereof has been classified as “Construction in Progress”
for more than eighteen (18) months, in which case, if such site improvements are
not completed, such Real Property or portion thereof will be classified as
unimproved land holdings.
 
“Contractual Obligation” means, as to any Person, any provision of any security
issued by such Person or of any agreement, instrument or other undertaking to
which such Person is a party or by which it or any of its property is bound.
 
“Control” means the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of a Person, whether
through the ability to exercise
 
 
 
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 voting power, by contract or otherwise.  “Controlling” and “Controlled” have
meanings correlative thereto.
 
“Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C
Credit Extension.
 
“Daily Usage” means, as of any date, the quotient (expressed as a percentage) of
(a) the Total Outstandings on such date, divided by (b) the Aggregate
Commitments on such date.
 
“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all
other liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.
 
“Default” means any event or condition that constitutes an Event of Default or
that, with the giving of any notice, the passage of time, or both, would be an
Event of Default.
 
“Default Rate” means (a) when used with respect to Obligations other than Letter
of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the
Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per annum;
provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable
Rate) otherwise applicable to such Loan plus 2% per annum, and (b) when used
with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus
2% per annum.
 
“Defaulting Lender” means, subject to Section 2.18(b), any Lender that, as
determined by the Administrative Agent, (a) has failed to perform any of its
funding obligations hereunder,  including in respect of its Loans or
participations in respect of Letters of Credit or Swing Line Loans, within three
Business Days of the date required to be funded by it hereunder, (b) has
notified the Borrower, or the Administrative Agent that it does not intend to
comply with its funding obligations or has made a public statement to that
effect with respect to its funding obligations hereunder or under other
agreements in which it commits to extend credit, (c) has failed, within three
Business Days after request by the Administrative Agent, to confirm in a manner
satisfactory to the Administrative Agent that it will comply with its funding
obligations, or (d) has, or has a direct or indirect parent company that has,
(i) become the subject of a proceeding under any Debtor Relief Law, (ii) had a
receiver, conservator, trustee, administrator, assignee for the benefit of
creditors or similar Person charged with reorganization or liquidation of its
business or a custodian appointed for it, or (iii) taken any action in
furtherance of, or indicated its consent to, approval of or acquiescence in any
such proceeding or appointment; provided that a Lender shall not be a Defaulting
Lender solely by virtue of the ownership or acquisition of any equity interest
in that Lender or any direct or indirect parent company thereof by a
Governmental Authority.
 
“Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by
any Person, including any sale,
 
 
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assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith.
 
“Dollar” and “$” mean lawful money of the United States.
 
“EBITDA” means for the Consolidated Group, without duplication, the sum of (a)
Net Income of the Consolidated Group, in each case, excluding (i) any non
recurring or extraordinary gains and losses for such period, (ii) any income or
gain and any loss in each case resulting from early extinguishment of
indebtedness and (iii) any net income or gain or any loss resulting from a swap
or other derivative contract (including by virtue of a termination thereof),
plus (b) an amount which, in the determination of Net Income for such period
pursuant to clause (a) above, has been deducted for or in connection with (i)
Interest Expense (plus, amortization of deferred financing costs, to the extent
included in the determination of Interest Expense per GAAP), (ii) income taxes,
and (iii) depreciation and amortization inclusive of intangibles, all determined
in accordance with GAAP for the prior four quarters, plus (c) the Consolidated
Group’s pro rata share of the above attributable to interests in Unconsolidated
Affiliates, with the exception of Origen Financial Inc. and Origen Financial
Services, Inc., plus (d) non-cash deferred compensation.
 
“Eligible Assignee” means any Person that meets the requirements to be an
assignee under Section 11.06(b)(iii), and (v) (subject to such consents, if any,
as may be required under Section 11.06(b)(iii)).
 
“Eligible Property” means Property reasonably acceptable to the Administrative
Agent that meets and continues to satisfy each of the following criteria:
 
(a)  Property types: manufactured home communities or recreation vehicle
communities.
 
(b)  Except for the SunChamp Property Owner Entities, the Loan Party that owns
such Property must be wholly-owned, directly or indirectly, by the Borrower
and/or Parent (or be a subsidiary of the Borrower and/or Parent that is
controlled exclusively by the Borrower and/or Parent and/or one or more
wholly-owned Subsidiaries of the Borrower, including control over operating
activities of such Subsidiary and the ability of such Subsidiary to dispose of,
pledge or otherwise encumber assets, incur, repay and prepay debt, provide
guarantees and pay dividends and distributions in each case without any
requirement for the consent of any other party or entity).
 
(c)  The Loan Party that owns such Property and the Property itself must be
located in the United States.
 
(d)  The Property may not be subject to any Liens, negative pledges and/or
encumbrances or any restrictions on the ability of the applicable Loan Party to
transfer or encumber such Property or income therefrom or proceeds thereof
(other than the pledge of Equity Interests to secure the Obligations, certain
permitted Liens and Liens to secure the SunChamp Indebtedness).
 
(e)  There may not exist any Lien (other than to secure the Obligations and
other than certain permitted Liens) on any of the Collateral, except for Liens
to secure the SunChamp Indebtedness.
 
 
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(f)  All management agreements, if any, pertaining to the Property must be
reasonably acceptable to the Administrative Agent.
 
(g)  The Property may not be subject to title defects, survey defects,
environmental violations or other defects, which could reasonably be expected to
cause a Material Property Event.
 
(h)  The Loan Party that owns the Property may not incur or otherwise be liable
for any Indebtedness other than the Obligations and other Indebtedness permitted
to be incurred by Loan Parties hereunder, including the SunChamp Indebtedness.
 
(i)  The receipt by the Administrative Agent of a Phase I environmental report
with respect to each Borrowing Base Property which has not previously been
included as a borrowing base property pursuant to the Existing Credit Agreement,
prepared by a qualified firm reasonably acceptable to the Administrative Agent
which finds, among other things, that such Borrowing Base Property is not
impaired by Hazardous Materials in violation of applicable Laws (other than
commercially reasonable amounts).  Phase I environmental reports have been
received by the Administrative Agent for all Initial Borrowing Base Properties.
 
(j)  The receipt by the Administrative Agent of evidence demonstrating
compliance of each Borrowing Base Property with insurance requirements
hereunder, which will include federally-mandated flood insurance requirements
for flood insurance if all or any portion of any building is located within a
federally designated flood hazard zone.
 
(k)  Such other reasonable criteria as reasonably determined by the
Administrative Agent upon further due diligence with respect to any proposed
Borrowing Base Property, and consistent with recreational vehicle and
manufactured home asset class.
 
For any Property that does not satisfy all the above-listed criteria to be added
as a Borrowing Base Property after the Closing Date, the Required Lenders will
have ten (10) Business Days from the receipt of historical operating statements
and other Property level diligence materials (including without limitation
surveys, environmental assessments and other third party reports) to
approve/disapprove the designation of a Property as a Borrowing Base Property,
if any Lender fails to respond during the 10-day period, such Lender shall be
deemed to have approved.
 
Notwithstanding anything set forth above, the Real Property owned by the
SunChamp Property Owners Entities shall be deemed Eligible Property and Initial
Borrowing Base Properties for purposes of this Agreement, but shall be subject
to all terms set forth herein with respect to ongoing inclusion of such property
as Borrowing Base Properties.
 
“Environmental Laws” means any and all Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.
 
 
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“Environmental Liability” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower, any other Loan Party or any of their
respective Subsidiaries directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.
 
“Equity Interest Collateral” means the Equity Interests listed on Schedule
1.01(F), as such Schedule may be amended from time to time upon the inclusion or
removal of any new Borrowing Base Property in the calculation of Borrowing Base
Availability.
 
“Equity Interests” means, with respect to any Person, all of the shares of
capital stock of (or other ownership or profit interests in) such Person, all of
the warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests in)
such Person, all of the securities convertible into or exchangeable for shares
of capital stock of (or other ownership or profit interests in) such Person or
warrants, rights or options for the purchase or acquisition from such Person of
such shares (or such other interests), and all of the other ownership or profit
interests in such Person (including partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares, warrants,
options, rights or other interests are outstanding on any date of determination.
 
“ERISA” means the Employee Retirement Income Security Act of 1974.
 
“ERISA Affiliate” means any trade or business (whether or not incorporated)
under common control with the Borrower within the meaning of Section 414(b) or
(c) of the Code (and Sections 414(m) and (o) of the Code for purposes of
provisions relating to Section 412 of the Code).
 
“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan;
(b) the withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan
subject to Section 4063 of ERISA during a plan year in which such entity was a
“substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Pension Plan amendment as a termination under Section 4041 or
4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a
Pension Plan; (f) any event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan; (g) the determination that any Pension Plan is
considered an at-risk plan or a plan in endangered or critical status within the
meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of
ERISA; or (h) the imposition of any liability under Title IV of ERISA, other
than for PBGC premiums due but not delinquent under Section 4007 of ERISA,
upon  the Borrower or any ERISA Affiliate.
 
“Eurodollar Rate” means:
 
 
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(a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per
annum equal to (i) the British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or such other commercially available source providing
quotations of BBA LIBOR as may be designated by the Administrative Agent from
time to time) at approximately 11:00 a.m., London time, two London Banking Days
prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period or, (ii) if such rate is not available at such time for any
reason, the rate per annum determined by the Administrative Agent to be the rate
at which deposits in Dollars for delivery on the first day of such Interest
Period in same day funds in the approximate amount of the Eurodollar Rate Loan
being made, continued or converted and with a term equivalent to such Interest
Period would be offered by Bank of America’s London Branch to major banks in the
London interbank Eurodollar market at their request at approximately 11:00 a.m.
(London time) two London Banking Days prior to the commencement of such Interest
Period; and
 
(b) for any interest calculation with respect to a Base Rate Loan on any date,
the rate per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m., London
time determined two London Banking Days prior to such date for Dollar deposits
being delivered in the London interbank market for a term of one month
commencing that day or (ii) if such published rate is not available at such time
for any reason, the rate per annum determined by the Administrative Agent to be
the rate at which deposits in Dollars for delivery on the date of determination
in same day funds in the approximate amount of the Base Rate Loan being made or
maintained and with a term equal to one month would be offered by Bank of
America’s London Branch to major banks in the London interbank Eurodollar market
at their request at the date and time of determination.
 
“Eurodollar Rate Committed Loan” means a Committed Loan that bears interest at a
rate based on clause (a) of the definition of “Eurodollar Rate.”
 
“Eurodollar Rate Loan” means a Eurodollar Rate Committed Loan.
 
“Event of Default” has the meaning specified in Section 9.01.
 
“Excluded Taxes” means, with respect to the Administrative Agent, any Lender,
the L/C Issuer or any other recipient of any payment to be made by or on account
of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by
its overall net income (however denominated), and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the Laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits taxes imposed by
the United States or any similar tax imposed by any other jurisdiction in which
the Borrower is located, (c) any backup withholding tax that is required by the
Code to be withheld from amounts payable to a Lender that has failed to comply
with clause (A) of Section 3.01(e)(ii), and (d) in the case of a Foreign Lender
(other than an assignee pursuant to a request by the Borrower under Section
11.13), any United States withholding tax that (i) is required to be imposed on
amounts payable to such Foreign Lender pursuant to the Laws in force at the time
such Foreign Lender becomes a party hereto (or designates a new Lending Office)
or (ii) is attributable to such Foreign Lender’s failure or inability (other
than as a result of a Change in Law) to comply with clause (B) of Section
 
 
 
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3.01(e)(ii), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new Lending Office (or
assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 3.01(a)(ii) or (c).
 
“Exclusion Event” has the meaning specified in Section 4.09.
 
“Exclusion Notice” has the meaning specified in Section 4.09.
 
“Existing Credit Agreement” means that certain Credit Agreement dated as of
September 30, 2004, as amended, among the Borrower, Bank of America, N.A., as
successor to Standard Federal Bank National Association, as administrative
agent, and a syndicate of lenders.
 
“Existing Letters of Credit” means those letters of credit described on Schedule
1.01(E).
 
“Existing Maturity Date” has the meaning specified in Section 2.15.
 
“Extension Option” has the meaning specified in Section 2.15.
 
“FASB ASC” means the Accounting Standards Codification of the Financial
Accounting Standards Board.
 
“Federal Funds Rate” means, for any day, the rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day; provided that (a) if such day is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate (rounded
upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of
America on such day on such transactions as determined by the Administrative
Agent.
 
“Fee Letter” means the letter agreement, dated July 25, 2011, among the
Borrower, the Administrative Agent and the Arranger.
 
“Fixed Charges” means for the Consolidated Group, without duplication, the sum
of (a) Interest Expense, plus (b) scheduled principal payments, exclusive of
balloon payments, plus (c) dividends and distributions on preferred stock, if
any (excluding dividends and distributions with respect to Series A-1 Preferred
Units (KentlandA-1)), plus (d) the Consolidated Group’s pro rata share of the
above attributable to interests in Unconsolidated Affiliates with the exception
of Origen Financial Inc. and Origen Financial Services, Inc., all for the most
recently ended period of four fiscal quarters.
 
“Foreign Lender” means any Lender that is organized under the Laws of a
jurisdiction other than that in which the Borrower is resident for tax purposes
(including such a Lender when acting in the capacity of the L/C Issuer).  For
purposes of this definition, the United States, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.
 
 
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“FRB” means the Board of Governors of the Federal Reserve System of the United
States.
 
“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with
respect to the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the
outstanding L/C Obligations other than L/C Obligations as to which such
Defaulting Lender’s participation obligation has been reallocated to other
Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with
respect to the Swing Line Lender, such Defaulting Lender’s Applicable Percentage
of Swing Line Loans other than Swing Line Loans as to which such Defaulting
Lender’s participation obligation has been reallocated to other Lenders or Cash
Collateralized in accordance with the terms hereof.
 
“Fund” means any Person (other than a natural person) that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its activities.
 
“Funds From Operations” means, with respect to the immediately prior twelve
month period, the Consolidated Group’s Net Income (or loss), plus depreciation
and amortization, inclusive of intangibles and after adjustments for
unconsolidated partnerships and joint ventures as hereafter provided. For
purposes hereof, (a) “Funds From Operations” shall include, and be adjusted to
take into account, the Borrower’s interests in unconsolidated partnerships and
joint ventures, on the same basis as consolidated partnerships and subsidiaries,
as provided in the “white paper” issued in April 2002 by the National
Association of Real Estate Investment Trusts, and (b) net income (or loss) shall
not include gains (or, if applicable, losses) resulting from or in connection
with (i) restructuring of indebtedness, (ii) sales of property, (iii) sales or
redemptions of preferred stock, (iv) non-cash charges, or (v) non-recurring
charges.
 
“GAAP” means generally accepted accounting principles in the United States set
forth in the opinions and pronouncements of the Accounting Principles Board and
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.
 
“Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central Bank).
 
“Guarantee” means, as to any Person, (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation payable or performable by
another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (i)
to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation, (ii) to purchase or lease property,
securities or services for the
 
 
 
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purpose of assuring the obligee in respect of such Indebtedness or other
obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness
or other obligation, or (iv) entered into for the purpose of assuring in any
other manner the obligee in respect of such Indebtedness or other obligation of
the payment or performance thereof or to protect such obligee against loss in
respect thereof (in whole or in part), or (b) any Lien on any assets of such
Person securing any Indebtedness or other obligation of any other Person,
whether or not such Indebtedness or other obligation is assumed by such Person
(or any right, contingent or otherwise, of any holder of such Indebtedness to
obtain any such Lien).  The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the related primary
obligation, or portion thereof, in respect of which such Guarantee is made or,
if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by GAAP.  The term “Guarantee” as a verb has a
corresponding meaning.
 
“Guaranties” means the Parent Guaranty and the Subsidiary Guaranty, and
“Guaranty” means any one of the Guaranties.
 
“Guarantors” means, collectively, Parent and each Subsidiary Guarantor, and
“Guarantor” means any one of the Guarantors.  The initial Guarantors are listed
on Schedule 1.01(B).
 
“Hazardous Materials” means all explosive or radioactive substances or wastes
and all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes, excessive
moisture, mildew, mold, microbial contamination, microbial growth or other
fungi, or biological agents that can or are known to produce mycotoxins or other
bioaerosols, such as antigens, bacteria, amoebae and microbial organic compounds
or other similar matter, in each case that poses a material risk to human health
or the environment, or negatively impacts the value of a Property in any
material respect, and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.
 
“Improved Land Holdings” means all vacant developed homesites owned by the
members of the Consolidated Group other than homesites classified as
Construction in Progress whose value shall be determined by taking (a)(1) the
net book value of all homesites owned by the members of the Consolidated Group
other than homesites classified as Construction in Progress divided by (2) the
total number of all homesites owned by the members of the Consolidated Group
other than homesites classified as Construction in Progress, multiplied by (b)
the total number of such vacant developed homesites other than homesites
classified as Construction in Progress.
 
“Indebtedness” means, for the Consolidated Group, without duplication, all of
the following, whether or not included as indebtedness or liabilities in
accordance with GAAP:
 
(a)           all obligations for borrowed money and all obligations evidenced
by bonds, debentures, notes, loan agreements or other similar instruments;
 
 
 
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(b)           all direct or contingent obligations under letters of credit
(including standby and commercial), bankers’ acceptances and similar instruments
(including bank guaranties and surety bonds, to the extent such instruments or
agreements support financial, rather than performance, obligations;
 
(c)           net obligations under any Swap Contract (exclusive of any
obligations secured by cash collateral);
 
(d)           all obligations to pay the deferred purchase price of property or
services;
 
(e)           capital leases, Synthetic Lease Obligations and Synthetic Debt;
 
(f)           all obligations to purchase, redeem, retire, defease or otherwise
make any cash payment in respect of any equity interest, to the extent required
to be purchased, redeemed, retired, or defeased for cash prior to the Maturity
Date, valued, in the case of a redeemable preferred interest, at the greater of
its voluntary or involuntary liquidation preference, plus accrued and unpaid
dividends, if any;
 
(g)           indebtedness (excluding prepaid interest thereon) secured by a
Lien on property (including indebtedness arising under conditional sales or
other title retention agreements) whether or not such indebtedness has been
assumed by the grantor of the Lien or is limited in recourse;
 
(h)           all Guarantees in respect of any of the foregoing.
 
For all purposes hereof, Indebtedness shall include the Consolidated Group’s pro
rata share of the foregoing items and components attributable to Indebtedness of
Unconsolidated Affiliates, with the exception of Origen Financial Inc. and
Origen Financial Services, Inc., but shall not include any Indebtedness due from
any entity which is included in the Consolidated Group to any other entity
included in the Consolidated Group. The amount of any net obligation under any
Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date.  The amount of any capital lease or Synthetic Lease
Obligation as of any date shall be deemed to be the amount of Attributable
Indebtedness in respect thereof as of such date.
 
“Indemnified Taxes” means Taxes other than Excluded Taxes.
 
“Indemnitees” has the meaning specified in Section 11.04(b).
 
“Information” has the meaning specified in Section 11.07.
 
“Initial Borrowing Base Properties” means the Properties listed on Schedule
4.01, and “Initial Borrowing Base Property” means any one of the Initial
Borrowing Base Properties.
 
“Interest Expense” means, without duplication, total cash interest expense of
the Consolidated Group determined in accordance with GAAP (including for the
avoidance of doubt capitalized interest and interest expense attributable to the
Consolidated Group’s ownership
 
 
 
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interests in Unconsolidated Affiliates, with the exception of Origen Financial
Inc. and Origen Financial Services, Inc.), all for the most recently ended
period of four fiscal quarters
 
“Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan,
the last day of each Interest Period applicable to such Loan and the Maturity
Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan
exceeds three months, the respective dates that fall every three months after
the beginning of such Interest Period shall also be Interest Payment Dates; and
(b) as to any Base Rate Loan (including a Swing Line Loan), the first Business
Day of each March, June, September and December and the Maturity Date.
 
“Interest Period” means as to each Eurodollar Rate Loan, the period commencing
on the date such Eurodollar Rate Loan is disbursed or (in the case of any
Eurodollar Rate Committed Loan) converted to or continued as a Eurodollar Rate
Loan and ending on the date one, two, three or six months thereafter, as
selected by the Borrower in its Committed Loan Notice:
 
(i)           any Interest Period that would otherwise end on a day that is not
a Business Day shall be extended to the next succeeding Business Day unless, in
the case of a Eurodollar Rate Loan, such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding
Business Day;
 
(ii)           any Interest Period pertaining to a Eurodollar Rate Loan that
begins on the last Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at the end of such
Interest Period) shall end on the last Business Day of the calendar month at the
end of such Interest Period; and
 
(iii)           no Interest Period shall extend beyond the Maturity Date.
 
“Investment” means, as to any Person, any direct or indirect acquisition or
investment by such Person, whether by means of (a) the purchase or other
acquisition of capital stock or other securities of another Person, (b) a loan,
advance or capital contribution to, Guarantee or assumption of debt of, or
purchase or other acquisition of any other debt or equity participation or
interest in, another Person, including any partnership or joint venture interest
in such other Person and any arrangement pursuant to which the investor
Guarantees Indebtedness of such other Person, or (c) the purchase or other
acquisition (in one transaction or a series of transactions) of assets of
another Person that constitute a business unit.  For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment.
 
“IRS” means the United States Internal Revenue Service.
 
“ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice, Inc. (or such later version thereof as may be in effect at the time of
issuance).
 
“Issuer Documents” means with respect to any Letter of Credit, the Letter of
Credit Application, and any other document, agreement and instrument entered
into by the L/C Issuer and the Borrower (or any Subsidiary) or in favor of the
L/C Issuer and relating to such Letter of Credit.
 
 
 
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“Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.
 
“L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage.
 
“L/C Borrowing” means an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Committed Borrowing.
 
“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount
thereof.
 
“L/C Issuer” means Bank of America in its capacity as issuer of Letters of
Credit hereunder, or any successor issuer of Letters of Credit hereunder.
 
“L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate
of all Unreimbursed Amounts, including all L/C Borrowings.  For purposes of
computing the amount available to be drawn under any Letter of Credit, the
amount of such Letter of Credit shall be determined in accordance with Section
1.06.  For all purposes of this Agreement, if on any date of determination a
Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of
Credit shall be deemed to be “outstanding” in the amount so remaining available
to be drawn.
 
“Lender” has the meaning specified in the introductory paragraph hereto and, as
the context requires, includes the Swing Line Lender.
 
“Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent.
 
“Letter of Credit” means any standby letter of credit issued hereunder and shall
include the Existing Letters of Credit.
 
“Letter of Credit Application” means an application and agreement for the
issuance or amendment of a Letter of Credit in the form from time to time in use
by the L/C Issuer.
 
“Letter of Credit Expiration Date” means the day that is seven (7) days prior to
the Maturity Date then in effect (or, if such day is not a Business Day, the
next preceding Business Day), provided that if a Letter of Credit is Cash
Collateralized in accordance with Section 2.17 at least 30 days prior to the
Maturity Date the Letter of Credit Expiration Date may be up to one (1) year
after the Maturity Date.
 
 
 
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“Letter of Credit Fee” has the meaning specified in Section 2.04(h).
 
“Letter of Credit Sublimit” means an amount equal to ten percent (10%) of the
Aggregate Commitments of the Lenders.  The Letter of Credit Sublimit is part of,
and not in addition to, the Aggregate Commitments.
 
“Leverage Ratio” means, as of any date of determination, the ratio of (a) Total
Indebtedness to (b) Total Asset Value.
 
“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), charge, or
preference, priority or other security interest or preferential arrangement in
the nature of a security interest of any kind or nature whatsoever (including
any conditional sale or other title retention agreement, any easement, right of
way or other encumbrance on title to real property, and any financing lease
having substantially the same economic effect as any of the foregoing).
 
“Loan” means an extension of credit by a Lender to the Borrower under Article
II in the form of a Committed Loan or a Swing Line Loan.
 
“Loan Documents” means this Agreement, each Note, each Issuer Document, any
agreement creating or perfecting rights in Cash Collateral pursuant to the
provisions of Section 2.17 of this Agreement, the Fee Letter, and the Guaranty.
 
“Loan Parties” means, collectively, the Borrower and each Guarantor.
 
“London Banking Day” means any day on which dealings in Dollar deposits are
conducted by and between banks in the London interbank Eurodollar market.
 
“Material Adverse Effect” means (A) a material adverse change in, or a material
adverse effect on, the operations, business, assets, properties, liabilities
(actual or contingent), or condition (financial or otherwise) of the Parent or
the Borrower and its Subsidiaries, taken as a whole; (B) a material adverse
effect on the rights and remedies of the Administrative Agent or any Lender
under any Loan Documents, or of the ability of the Borrower and the Loan Parties
taken as a whole to perform their obligations under any Loan Documents; and (C)
a material adverse effect upon the legality, validity, binding effect or
enforceability against any Loan Party of any Loan Documents to which it is a
party.
 
“Material Environmental Event” means, with respect to any Borrowing Base
Property, (a) a violation of any Environmental Law with respect to such
Borrowing Base Property, or (b) the presence of any Hazardous Materials on,
about, or under such Borrowing Base Property that, under or pursuant to any
Environmental Law, would require remediation, if in the case of either (a) or
(b), such event or circumstance could reasonably be expected to have a Material
Property Event.
 
“Material Property Event” means, with respect to any Borrowing Base Property,
the occurrence of any event or circumstance occurring or arising after the date
of this Agreement that could reasonably be expected to have a (a) material
adverse effect with respect to the financial condition or the operations of such
Borrowing Base Property, (b) material adverse
 
 
 
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effect on the value of such Borrowing Base Property, or (c) material adverse
effect on the ownership of such Borrowing Base Property.
 
“Maturity Date” means the later of (a) October 1, 2014 and (b) if maturity is
extended pursuant to Section 2.15, such extended maturity date as determined
pursuant to such Section; provided, however, that, in each case, if such date is
not a Business Day, the Maturity Date shall be the next preceding Business Day.
 
“Maximum Availability” means the lesser of: (a) the Aggregate Commitments; or
(b) the Borrowing Base Availability.
 
“Mortgage Assignments” means those mortgage assignments listed on Schedule
1.01(G).
 
“Mortgageability Amount” means the maximum amount of principal which can be
supported by the aggregate Mortgageability Cash Flow from all the Borrowing Base
Properties, assuming a 30-year amortization and an interest rate which is the
greater of (i) the 10-Year Treasury Rate + 2.50% or (ii) 7.0%, and a minimum
debt service coverage ratio of 1.50 to 1.00.
 
“Mortgageability Cash Flow” means at any time and with respect to any Borrowing
Base Property, the Borrowing Base NOI from such Borrowing Base Property, minus
the Annual Capital Expenditure Adjustment, but calculated exclusively with
respect to such Borrowing Base Property, minus an amount equal to four percent
(4%) of rents for management fees.
 
“Multiemployer Plan” means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes
or is obligated to make contributions, or during the preceding five plan years,
has made or been obligated to make contributions.
 
“Multiple Employer Plan” means a Plan which has two or more contributing
sponsors (including the Borrower or any ERISA Affiliate) at least two of whom
are not under common control, as such a plan is described in Section 4064 of
ERISA.
 
“Net Income” means the net income (or loss) of the Consolidated Group for the
subject period; provided, however that Net Income shall exclude (a)
extraordinary gains and extraordinary losses for such period, (b) the net income
of any subsidiary of the Parent during such period to the extent that the
declaration or payment of dividends or similar distributions by such subsidiary
of such income is not permitted by operation of the terms of its organization
documents or any agreement, instrument or law applicable to such subsidiary
during such period, except that the Parent’s equity in any net loss of any such
subsidiary for such period shall be included in determining Net Income, and (c)
any income (or loss) for such period of any Person if such Person is not a
subsidiary of the Parent, except that the Parent’s equity in the net income of
any such Person for such period shall be included in Net Income up to the
aggregate amount of cash actually distributed by such Person during such period
to the Parent or a subsidiary thereof as a dividend or other distribution (and
in the case of a dividend or other distribution to a subsidiary of the Parent,
such subsidiary is not precluded from further distributing such amount to the
Parent as described in clause (b) of this proviso).
 
 
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“Net Operating Income” means for any Real Property and for any period, an amount
equal to (a) the aggregate gross revenues from the operations of such Real
Property during such period derived from tenants in occupancy and paying rent,
minus (b) the sum of all expenses and other proper charges incurred in
connection with the operation of such Real Property during such period
(including accruals for real estate taxes and insurance, but excluding  any
management fees actually paid in cash, debt service charges, income taxes, state
taxes, depreciation, amortization and other non-cash expenses),  which expenses
and accruals shall be calculated in accordance with GAAP.
 
“Non-Recourse Indebtedness” means, with respect to a Person, Indebtedness for
borrowed money in respect of which recourse for payment (except for customary
exceptions to nonrecourse liability, such as fraud, misapplication of funds and
environmental indemnities, and customary exceptions which trigger recourse for
payment of the entire indebtedness, such as bankruptcy, insolvency, receivership
or other similar events) is contractually limited to specific assets of such
Person encumbered by a Lien securing such Indebtedness.
 
“Note” means a promissory note made by the Borrower in favor of a Lender
evidencing Loans made by such Lender, substantially in the form of Exhibit C.
 
“Obligations” means all advances to, and debts, liabilities, obligations,
covenants and duties of, any Loan Party arising under any Loan Document or
otherwise with respect to any Loan or Letter of Credit, or any Swap Contract,
whether direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against any
Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief
Laws naming such Person as the debtor in such proceeding, regardless of whether
such interest and fees are allowed claims in such proceeding.
 
“Organization Documents” means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.
 
“Other Taxes” means all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any
payment made hereunder or under any other Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.
 
“Outstanding Amount” means (i) with respect to Committed Loans and Swing Line
Loans on any date, the aggregate outstanding principal amount thereof after
giving effect to any borrowings and prepayments or repayments of Committed Loans
and Swing Line Loans, as the
 
 
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case may be, occurring on such date; and (ii) with respect to any L/C
Obligations on any date, the amount of such L/C Obligations on such date after
giving effect to any L/C Credit Extension occurring on such date and any other
changes in the aggregate amount of the L/C Obligations as of such date,
including as a result of any reimbursements by the Borrower of Unreimbursed
Amounts.
 
“Parent” means Sun Communities, Inc., a Maryland corporation.
 
“Parent Guaranty” means the Guaranty executed by Parent in favor of
Administrative Agent, for the benefit of the Lenders, in form and substance
acceptable to Administrative Agent.
 
“Participant” has the meaning specified in Section 11.06(d).
 
“PBGC” means the Pension Benefit Guaranty Corporation.
 
“Pension Act” means the Pension Protection Act of 2006.
 
“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum
required contributions (including any installment payment thereof) to Pension
Plans and set forth in, with respect to plan years ending prior to the effective
date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each
as in effect prior to the Pension Act and, thereafter, Section 412, 430, 431,
432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.
 
“Pension Plan” means any employee pension benefit plan (including a Multiple
Employer Plan or a Multiemployer Plan) that is maintained or is contributed to
by the Borrower and any ERISA Affiliate and is either covered by Title IV of
ERISA or is subject to the minimum funding standards under Section 412 of the
Code.
 
“Permitted Distributions” means (a) for Borrower for any fiscal year of
Borrower, Restricted Payments in an amount not to exceed in the aggregate the
greater of (i) 95% of Funds From Operations, calculated on a trailing twelve
month basis, and (ii) the sum of (A) the amount of Restricted Payments required
to be paid by the Parent in order for it to (x) maintain its REIT status for
federal or state income tax purposes and (y) avoid the payment of federal or
state income or excise tax, plus (B) corresponding pro rata distributions to the
Limited Partners of the Borrower; provided, however that (1) during an Event of
Default under Section 9.01(a), Restricted Payments by the Borrower to the
Parent, with corresponding pro rata distributions to the Limited Partners of the
Borrower, and by the Parent to its shareholders, shall only be permitted up to
the minimum amount needed to maintain the REIT status as a REIT for federal and
state income tax purposes, and (2) notwithstanding the preceding clause (1), no
Restricted Payments will be permitted following acceleration of amounts owing
hereunder or during the existence of an Event of Default under Section 9.01(f).
 
“Person” means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority
or other entity.
 
“Plan” means any employee benefit plan within the meaning of Section 3(3) of
ERISA (including a Pension Plan), maintained for employees of the Borrower or
any ERISA Affiliate or
 
 
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any such Plan to which the Borrower or any ERISA Affiliate is required to
contribute on behalf of any of its employees.
 
“Platform” has the meaning specified in Section 7.02.
 
“Pledge Agreement” means each Pledge Agreement or similarly titled document,
executed by a Pledgor, to or for the benefit of Administrative Agent, for the
benefit of the Lenders, covering the Equity Interest Collateral.
 
“Pledgors” means, collectively, those entities that execute the Pledge Agreement
as a Pledgor; “Pledgor” means any one of the Pledgors.
 
“Property” means any Real Property which is owned, directly or indirectly, by a
Loan Party.
 
“Property Information” has the meaning specified in Section 4.03.
 
“Property Owners” means, collectively, each Subsidiary which owns a Borrowing
Base Property, other than the SunChamp Property Owner Entities, and “Property
Owner” means any one of the Property Owners.
 
“Public Lender” has the meaning specified in Section 7.02.
 
“Real Property” of any Person means all of the right, title, and interest of
such Person in and to land, improvements, and fixtures.
 
“Recourse Indebtedness” means Indebtedness for borrowed money other than
Non-Recourse Indebtedness.
 
“Register” has the meaning specified in Section 11.06(c).
 
“Related Parties” means, with respect to any Person, such Person’s Affiliates
and the partners, directors, officers, employees, agents, trustees and advisors
of such Person and of such Person’s Affiliates.
 
“Reportable Event” means any of the events set forth in Section 4043(c) of
ERISA, other than events for which the 30 day notice period has been waived.
 
“Request for Credit Extension” means (a) with respect to a Borrowing, conversion
or continuation of Committed Loans, a Committed Loan Notice, (b) with respect to
an L/C Credit Extension, a Letter of Credit Application, and (c) with respect to
a Swing Line Loan, a Swing Line Loan Notice.
 
“Required Lenders” means, as of any date of determination, Lenders having at
least 66-2/3% of the Aggregate Commitments or, if the commitment of each Lender
to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions
have been terminated pursuant to Section 9.02, Lenders holding in the aggregate
at least 66-2/3% of the Total Outstandings (with the aggregate amount of each
Lender’s risk participation and funded participation in L/C
 
 
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Obligations and Swing Line Loans being deemed “held” by such Lender for purposes
of this definition); provided that the Commitment of, and the portion of the
Total Outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.
 
“Responsible Officer” means the chief executive officer, president, chief
financial officer, treasurer, assistant treasurer or controller of a Loan Party,
and solely for purposes of the delivery of incumbency certificates pursuant to
Section 5.01, the secretary or any assistant secretary of a Loan Party.  Any
document delivered hereunder that is signed by a Responsible Officer of a Loan
Party shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Loan Party.
 
“Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity
Interest of the Borrower or any Subsidiary, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such capital stock or other Equity Interest, or on account of
any return of capital to the Borrower’s stockholders, partners or members (or
the equivalent Person thereof).
 
“SEC” means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.
 
“Secured Indebtedness” means for any Person, Indebtedness of such Person that is
secured by a Lien.
 
“Secured Recourse Indebtedness” means for any Person, Recourse Indebtedness of
such Person that is secured by a Lien.
 
“Security Documents” means:
 
(a)           the Pledge Agreements;
 
(b)           the Mortgage Assignments;
 
(c)           financing statements to be filed with the appropriate state and/or
county offices for the perfection of a security interest in any of the
Collateral; and
 
(d)           all other agreements, documents, and instruments securing the
Obligations or any part thereof, as shall from time to time be executed and
delivered by Borrower, Subsidiary Guarantors, or any other Person in favor of
Administrative Agent.
 
“Site” means a pad leased or to be leased to an individual on which such
individual places a single manufactured home or recreational vehicle.
 
“Solvent” means, when used with respect to any Person, that (a) the fair value
and the fair salable value of its assets (excluding any Indebtedness due from
any affiliate of such Person) are
 
 
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each in excess of the fair valuation of its total liabilities (including all
contingent liabilities); (b) such Person is able to pay its debts or other
obligations in the ordinary course as they mature; and (c) such Person has
capital not unreasonably small to carry on its business and all business in
which it proposes to be engaged.
 
“Subsidiary” of a Person means a corporation, partnership, joint venture,
limited liability company or other business entity of which a majority of the
shares of securities or other interests having ordinary voting power for the
election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned by such Person.  Unless otherwise specified,
all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a
Subsidiary or Subsidiaries of the Borrower.
 
“Subsidiary Guarantors” means, all Subsidiaries that execute the Subsidiary
Guaranty as of the date of this Agreement or pursuant to a counterpart signature
page or joinder to the Subsidiary Guaranty in the future in accordance with
Section 7.14 of this Agreement  and “Subsidiary Guarantor” means any one of the
Subsidiary Guarantors.
 
“Subsidiary Guaranty” means the Guaranty executed by each Subsidiary Guarantor
in favor of Administrative Agent, for the benefit of the Lenders, in form and
substance acceptable to Administrative Agent.
 
“SunChamp Collateral” means those loan documents listed on Schedule 1.01(C).
 
“SunChamp Indebtedness” means all indebtedness evidenced by the SunChamp
Collateral.
 
“SunChamp Properties” means all Real Property owned by any of the SunChamp
Property Owner Entities.
 
“SunChamp Property Owner Entities” means each of the entities listed on Schedule
1.01(D).
 
“Swap Contract” means (a) any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions,
collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including
any such obligations or liabilities under any Master Agreement.
 
 
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“Swap Termination Value” means, in respect of any one or more Swap Contracts,
after taking into account the effect of any legally enforceable netting
agreement relating to such Swap Contracts, (a) for any date on or after the date
such Swap Contracts have been closed out and termination value(s) determined in
accordance therewith, such termination value(s), and (b) for any date prior to
the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one or
more mid-market or other readily available quotations provided by any recognized
dealer in such Swap Contracts (which may include a Lender or any Affiliate of a
Lender).
 
“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to
Section 2.05.
 
“Swing Line Lender” means Bank of America in its capacity as provider of Swing
Line Loans, or any successor swing line lender hereunder.
 
“Swing Line Loan” has the meaning specified in Section 2.05(a).
 
“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.05(b), which, if in writing, shall be substantially in the form of
Exhibit B.
 
“Swing Line Sublimit” means an amount equal to ten percent (10%) of the
Aggregate Commitments of the Lenders.  The Swing Line Sublimit is part of, and
not in addition to, the Aggregate Commitments.
 
“Synthetic Lease Obligation” means the monetary obligation of a Person under (a)
a so-called synthetic, off-balance sheet or tax retention lease, or (b) an
agreement for the use or possession of property creating obligations that do not
appear on the balance sheet of such Person but which, upon the insolvency or
bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).
 
“Tangible Net Worth” means for the Consolidated Group as of any date of
determination, (a) total equity on a consolidated basis determined in accordance
with GAAP; plus (b) all redeemable and/or convertible preferred units, provided,
such redemption or conversion rights are exercisable with respect to such
securities after the Maturity Date; minus (c) all intangible assets on a
consolidated basis determined in accordance with GAAP plus (d) all depreciation
and amortization determined in accordance with GAAP.
 
“Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax
or penalties applicable thereto.
 
“Total Asset Value” means at any time for the Consolidated Group, without
duplication, the sum of the following: (a) an amount equal to (1) (x) Net
Operating Income for the most recently ended period of four fiscal quarters from
all Real Property assets owned by the Consolidated Group other than Construction
in Progress for then most recently ended period of four fiscal quarters plus (y)
Net Operating Income for the most recently ended fiscal quarter from all Real
Property assets owned by the Consolidated Group other than Construction in
Progress for at least one full fiscal quarter but less than the most recently
ended period of four fiscal
 
 
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quarters, times four, divided by (2) the Capitalization Rate, plus (b) the
aggregate acquisition cost of all Real Property assets owned by the Consolidated
Group other than Construction in Progress for less than one full fiscal quarter,
plus (c) the lesser of (1) the aggregate book value of all Improved Land
Holdings and unimproved land holdings other than Construction in Progress and
(2)  $150,000,000, plus (d) the aggregate book value of mortgage or mezzanine
loans, notes receivable and/or Construction in Progress owned by the
Consolidated Group, plus (e) the Consolidated Group’s pro rata share of the
foregoing items and components attributable to interest in Unconsolidated
Affiliates with the exception of Origen Financial Inc. and Origen Financial
Services, Inc., plus (f) unrestricted cash and cash equivalents. For the
avoidance of doubt, Net Operating Income attributable to all such Real Property
assets that were sold or otherwise disposed of during any period of calculation
shall be excluded from the calculation of Total Asset Value.
 
“Total Indebtedness” means all Indebtedness of the Consolidated Group determined
on a consolidated basis.
 
“Total Outstandings” means the aggregate Outstanding Amount of all Loans and all
L/C Obligations.
 
“Total Secured Indebtedness” means all Secured Indebtedness of the Consolidated
Group determined on a consolidated basis.
 
“Type” means its character as a Base Rate Loan or a Eurodollar Rate Loan.
 
“Unconsolidated Affiliate” means an affiliate of the Borrower whose financial
statements are not required to be consolidated with the financial statements of
the Borrower in accordance with GAAP.
 
“United States” and “U.S.” mean the United States of America.
 
“Unreimbursed Amount” has the meaning specified in Section 2.04(c)(i).
 
“Unused Rate” means the following percentages per annum based upon the Daily
Usage as set forth below:
 
Daily Usage
Unused Rate
<50%
0.35%
>50%
0.25%

 
 
1.02 Other Interpretive Provisions.  With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan
Document:
 
(a) The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined.  Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter
forms.  The words “include,” “includes” and “including” shall be deemed to be
followed by the phrase “without limitation.”  The word “will” shall be construed
to have the same meaning and effect as the word “shall.”  Unless the context
 
 
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requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein
or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words
“hereto,” “herein,” “hereof” and “hereunder,” and words of similar import when
used in any Loan Document, shall be construed to refer to such Loan Document in
its entirety and not to any particular provision thereof, (iv) all references in
a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed
to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan
Document in which such references appear, (v) any reference to any law shall
include all statutory and regulatory provisions consolidating, amending,
replacing or interpreting such law and any reference to any law or regulation
shall, unless otherwise specified, refer to such law or regulation as amended,
modified or supplemented from time to time, and (vi) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer
to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.
 
(b) In the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including;” the words “to” and
“until” each mean “to but excluding;” and the word “through” means “to and
including.”
 
(c) Section headings herein and in the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this
Agreement or any other Loan Document.
 
1.03 Accounting Terms.
 
(a) Generally.  All accounting terms not specifically or completely defined
herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted
pursuant to this Agreement shall be prepared in conformity with, GAAP applied on
a consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements, except
as otherwise specifically prescribed herein. Notwithstanding the foregoing, for
purposes of determining compliance with any covenant (including the computation
of any financial covenant) contained herein, Indebtedness of the Borrower and
its Subsidiaries shall be deemed to be carried at 100% of the outstanding
principal amount thereof, and the effects of FASB ASC 825 on financial
liabilities shall be disregarded.
 
(b) Changes in GAAP.  If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan
Document, and either the Borrower or the Required Lenders shall so request, the
Administrative Agent, the Lenders and the Borrower shall negotiate in good faith
to amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (i) such ratio or requirement shall continue to
be computed in accordance with GAAP prior to such change therein and (ii) the
Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other documents
 
 
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required under this Agreement or as reasonably requested hereunder setting forth
a reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP.
 
1.04 Rounding.  Any financial ratios required to be maintained by the Borrower
pursuant to this Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than the
number of places by which such ratio is expressed herein and rounding the result
up or down to the nearest number (with a rounding-up if there is no nearest
number).
 
1.05 Times of Day.  Unless otherwise specified, all references herein to times
of day shall be references to Eastern time (daylight or standard, as
applicable).
 
1.06 Letter of Credit Amounts.  Unless otherwise specified herein, the amount of
a Letter of Credit at any time shall be deemed to be the stated amount of such
Letter of Credit in effect at such time; provided, however, that with respect to
any Letter of Credit that, by its terms or the terms of any Issuer Document
related thereto, provides for one or more automatic increases in the stated
amount thereof, the amount of such Letter of Credit shall be deemed to be the
maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.
 
ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
 
2.01 Committed Loans.  Subject to the terms and conditions set forth herein,
each Lender severally agrees to make loans (each such loan, a “Committed Loan”)
to the Borrower from time to time, on any Business Day during the Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount
of such Lender’s Commitment; provided, however, that after giving effect to any
Committed Borrowing, (i) the Total Outstandings shall not exceed the Maximum
Availability, and (ii) the aggregate Outstanding Amount of the Committed Loans
of any Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment.  Within the limits of each Lender’s Commitment, and subject to the
other terms and conditions hereof, the Borrower may borrow under this Section
2.01, prepay under Section 2.06, and reborrow under this Section
2.01.  Committed Loans may be Base Rate Loans or Eurodollar Rate Loans, as
further provided herein.
 
2.02 Borrowings, Conversions and Continuations of Committed Loans.
 
(a) Each Committed Borrowing, each conversion of Committed Loans from one Type
to the other, and each continuation of Eurodollar Rate Committed Loans shall be
made upon the Borrower’s irrevocable notice to the Administrative Agent, which
may be given by telephone.  Each such notice must be received by the
Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to
the requested date of any Borrowing of, conversion to or continuation of
Eurodollar Rate Committed Loans or of any conversion of Eurodollar Rate
Committed Loans to Base Rate Committed Loans, and (ii) on the requested date of
any Borrowing of Base Rate Committed Loans.  Each telephonic notice by the
Borrower pursuant to
 
 
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this Section 2.02(a) must be confirmed promptly by delivery to the
Administrative Agent of a written Committed Loan Notice, appropriately completed
and signed by a Responsible Officer of the Borrower.  Each Borrowing of,
conversion to or continuation of Eurodollar Rate Committed Loans shall be in a
principal amount of $2,000,000 or a whole multiple of $500,000 in excess
thereof.  Except as provided in Sections 2.04(c) and 2.05(c), each Borrowing of
or conversion to Base Rate Committed Loans shall be in a principal amount of
$100,000 or a whole multiple of $100,000 in excess thereof.  Each Committed Loan
Notice (whether telephonic or written) shall specify (i) whether the Borrower is
requesting a Committed Borrowing, a conversion of Committed Loans from one Type
to the other, or a continuation of Eurodollar Rate Committed Loans, (ii) the
requested date of the Borrowing, conversion or continuation, as the case may be
(which shall be a Business Day), (iii) the principal amount of Committed Loans
to be borrowed, converted or continued, (iv) the Type of Committed Loans to be
borrowed or to which existing Committed Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto.  If the
Borrower fails to specify a Type of Committed Loan in a Committed Loan Notice or
if the Borrower fails to give a timely notice requesting a conversion or
continuation, then the applicable Committed Loans shall be made as, or converted
to, Base Rate Loans.  Any such automatic conversion to Base Rate Loans shall be
effective as of the last day of the Interest Period then in effect with respect
to the applicable Eurodollar Rate Committed Loans.  If the Borrower requests a
Borrowing of, conversion to, or continuation of Eurodollar Rate Committed Loans
in any such Committed Loan Notice, but fails to specify an Interest Period, it
will be deemed to have specified an Interest Period of one month.
 
(b) Following receipt of a Committed Loan Notice, the Administrative Agent shall
promptly notify each Lender of the amount of its Applicable Percentage of the
applicable Committed Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify
each Lender of the details of any automatic conversion to Base Rate Loans
described in the preceding subsection.  In the case of a Committed Borrowing,
each Lender shall make the amount of its Committed Loan available to the
Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the Business Day specified in the
applicable Committed Loan Notice.  Upon satisfaction of the applicable
conditions set forth in Section 5.02 (and, if such Borrowing is the initial
Credit Extension, Section 5.01), the Administrative Agent shall make all funds
so received available to the Borrower in like funds as received by the
Administrative Agent on the requested date of Borrowing as set forth in
Committed Loan Notice either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date the Committed Loan Notice with respect to such
Borrowing is given by the Borrower, there are L/C Borrowings outstanding, then
the proceeds of such Borrowing, first, shall be applied to the payment in full
of any such L/C Borrowings, and second, shall be made available to the Borrower
as provided above.
 
(c) Except as otherwise provided herein, a Eurodollar Rate Committed Loan may be
continued or converted only on the last day of an Interest Period for such
Eurodollar Rate Committed Loan.  During the existence of a Default, no Loans may
be requested as, converted to or continued as Eurodollar Rate Committed Loans
without the consent of the Required Lenders.
 
 
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(d) The Administrative Agent shall promptly notify the Borrower and the Lenders
of the interest rate applicable to any Interest Period for Eurodollar Rate
Committed Loans upon determination of such interest rate.  At any time that Base
Rate Loans are outstanding, the Administrative Agent shall notify the Borrower
and the Lenders of any change in Bank of America’s prime rate used in
determining the Base Rate promptly following the public announcement of such
change.
 
(e) After giving effect to all Committed Borrowings, all conversions of
Committed Loans from one Type to the other, and all continuations of Committed
Loans as the same Type, there shall not be more than six (6) Interest Periods in
effect with respect to Committed Loans.
 
2.03 Intentionally Omitted.
 
2.04 Letters of Credit.
 
(a) The Letter of Credit Commitment.
 
(i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer
agrees, in reliance upon the agreements of the Lenders set forth in this Section
2.04, (1) from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue Letters of
Credit for the account of the Borrower, and to amend or extend Letters of Credit
previously issued by it, in accordance with subsection (b) below, and (2) to
honor drawings under the Letters of Credit; and (B) the Lenders severally agree
to participate in Letters of Credit issued for the account of the Borrower and
any drawings thereunder; provided that after giving effect to any L/C Credit
Extension with respect to any Letter of Credit, (x) the Total Outstandings shall
not exceed the Maximum Availability, (y) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations
shall not exceed the Letter of Credit Sublimit.  Each request by the Borrower
for the issuance or amendment of a Letter of Credit shall be deemed to be a
representation by the Borrower that the L/C Credit Extension so requested
complies with the conditions set forth in the proviso to the preceding
sentence.  Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully
revolving, and accordingly the Borrower may, during the foregoing period, obtain
Letters of Credit to replace Letters of Credit that have expired or that have
been drawn upon and reimbursed.  All Existing Letters of Credit shall be deemed
to have been issued pursuant hereto, and from and after the Closing Date shall
be subject to and governed by the terms and conditions hereof.
 
(ii) The L/C Issuer shall not issue any Letter of Credit, if:
 
(A) except as otherwise provided in Section 2.04(b)(iii) the expiry date of the
requested Letter of Credit would occur more than twelve months after the date of
issuance, unless the Required Lenders have approved such expiry date; or
 
 
 
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(B) the expiry date of the requested Letter of Credit would occur after the
Letter of Credit Expiration Date, unless all the Lenders have approved such
expiry date.
 
(iii) The L/C Issuer shall not be under any obligation to issue any Letter of
Credit if:
 
(A) any order, judgment or decree of any Governmental Authority or arbitrator
shall by its terms purport to enjoin or restrain the L/C Issuer from issuing the
Letter of Credit, or any Law applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over the L/C Issuer shall prohibit, or request that
the L/C Issuer refrain from, the issuance of letters of credit generally or the
Letter of Credit in particular or shall impose upon the L/C Issuer with respect
to the Letter of Credit any restriction, reserve or capital requirement (for
which the L/C Issuer is not otherwise compensated hereunder) not in effect on
the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss,
cost or expense which was not applicable on the Closing Date and which the L/C
Issuer in good faith deems material to it;
 
 
 
(B) the issuance of the Letter of Credit would violate one or more policies of
the L/C Issuer applicable to letters of credit generally;
 
(C) the Letter of Credit is to be denominated in a currency other than Dollars;
 
(D) any Lender is at that time a Defaulting Lender, unless the L/C Issuer has
entered into arrangements, including the delivery of Cash Collateral,
satisfactory to the L/C Issuer (in its sole discretion) with the Borrower or
such Lender to eliminate the L/C Issuer’s actual or potential Fronting Exposure
(after giving effect to Section 2.18(a)(iv)) with respect to the Defaulting
Lender arising from either the Letter of Credit then proposed to be issued or
that Letter of Credit and all other L/C Obligations as to which the L/C Issuer
has actual or potential Fronting Exposure, as it may elect in its sole
discretion, or
 
(E) the Letter of Credit contains any provisions for automatic reinstatement of
the stated amount after any drawing thereunder.
 
(iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would
not be permitted at such time to issue the Letter of Credit in its amended form
under the terms hereof.
 
(v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if
(A) the L/C Issuer would have no obligation at such time to issue the Letter of
Credit in its amended form under the terms hereof, or (B) the beneficiary of the
Letter of Credit does not accept the proposed amendment to the Letter of Credit.
 
 
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(vi) The L/C Issuer shall act on behalf of the Lenders with respect to any
Letters of Credit issued by it and the documents associated therewith, and the
L/C Issuer shall have all of the benefits and immunities (A) provided to the
Administrative Agent in Article X with respect to any acts taken or omissions
suffered by the L/C Issuer in connection with Letters of Credit issued by it or
proposed to be issued by it and Issuer Documents pertaining to such Letters of
Credit as fully as if the term “Administrative Agent” as used in Article X
included the L/C Issuer with respect to such acts or omissions, and (B) as
additionally provided herein with respect to the L/C Issuer.
 
(b) Procedures for Issuance and Amendment of Letters of Credit.
 
(i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of the Borrower delivered to the L/C Issuer (with a copy to the
Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of the
Borrower.  Such Letter of Credit Application must be received by the L/C Issuer
and the Administrative Agent not later than 11:00 a.m. at least two Business
Days (or such later date and time as the Administrative Agent and the L/C Issuer
may agree in a particular instance in their sole discretion) prior to the
proposed issuance date or date of amendment, as the case may be.  In the case of
a request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer: (A)
the proposed issuance date of the requested Letter of Credit (which shall be a
Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name
and address of the beneficiary thereof; (E) the documents to be presented by
such beneficiary in case of any drawing thereunder; (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing
thereunder; (G) the purpose and nature of the requested Letter of Credit; and
(H) such other matters as the L/C Issuer may require.  In the case of a request
for an amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A)
the Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and
(D) such other matters as the L/C Issuer may require.  Additionally, the
Borrower shall furnish to the L/C Issuer and the Administrative Agent such other
documents and information pertaining to such requested Letter of Credit issuance
or amendment, including any Issuer Documents, as the L/C Issuer or the
Administrative Agent may require.
 
(ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer
will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from the Borrower and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof.  Unless the L/C Issuer has received written notice
from any Lender, the Administrative Agent or any Loan Party, at least one
Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained in
Article V shall not then be satisfied, then, subject to the terms and conditions
hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit
for the account of the Borrower or enter into the applicable amendment, as the
case may be, in each case in accordance with the L/C Issuer’s usual and
customary
 
 
 
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        business practices.  Immediately upon the issuance of each Letter of
Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in
such Letter of Credit in an amount equal to the product of such Lender’s
Applicable Percentage times the amount of such Letter
        of Credit.
 
(iii) If the Borrower so requests in any applicable Letter of Credit
Application, the L/C Issuer shall issue a Letter of Credit that has automatic
extension provisions (each, an “Auto-Extension Letter of Credit”); provided that
any such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent
any such extension at least once in each twelve-month period (commencing with
the date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in
each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued.  Once an Auto-Extension Letter of Credit has been issued, the
Lenders shall be deemed to have authorized (but may not require) the L/C Issuer
to permit the extension of such Letter of Credit at any time to an expiry date
not later than the Letter of Credit Expiration Date; provided, however, that the
L/C Issuer shall not permit any such extension if an Event of Default is
continuing hereunder.
 
(iv) Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the L/C Issuer will also deliver to the Borrower and the Administrative
Agent a true and complete copy of such Letter of Credit or amendment.
 
(c) Drawings and Reimbursements; Funding of Participations.
 
(i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower
and the Administrative Agent thereof.  Not later than 11:00 a.m. on the date of
any payment by the L/C Issuer under a Letter of Credit (each such date, an
“Honor Date”), the Borrower shall reimburse the L/C Issuer through the
Administrative Agent in an amount equal to the amount of such drawing.  If the
Borrower fails to so reimburse the L/C Issuer by such time, the Administrative
Agent shall promptly notify each Lender of the Honor Date, the amount of the
unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Applicable Percentage thereof.  In such event, the Borrower shall be
deemed to have requested a Committed Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount,
without regard to the minimum and multiples specified in Section 2.02 for the
principal amount of Base Rate Loans, but subject to the amount of the unutilized
portion of the Aggregate Commitments and the conditions set forth in Section
5.02 (other than the delivery of a Committed Loan Notice).  Any notice given by
the L/C Issuer or the Administrative Agent pursuant to this Section 2.04(c)(i)
may be given by telephone if immediately confirmed in writing; provided that the
lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.
 
(ii) Each Lender shall upon any notice pursuant to Section 2.04(c)(i) make funds
available (and the Administrative Agent may apply Cash Collateral provided for
 
 
 
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this purpose) for the account of the L/C Issuer at the Administrative Agent’s
Office in an amount equal to its Applicable Percentage of the Unreimbursed
Amount not later than 1:00 p.m. on the Business Day specified in such notice by
the Administrative Agent, whereupon, subject to the provisions of Section
2.04(c)(iii), each Lender that so makes funds available shall be deemed to have
made a Base Rate Committed Loan to the Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the L/C Issuer.
 
(iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in
Section 5.02 cannot be satisfied or for any other reason, the Borrower shall be
deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of
the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be
due and payable on demand (together with interest) and shall bear interest at
the Default Rate.  In such event, each Lender’s payment to the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.04(c)(ii) shall be
deemed payment in respect of its participation in such L/C Borrowing and shall
constitute an L/C Advance from such Lender in satisfaction of its participation
obligation under this Section 2.04.
 
(iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.04(c) to reimburse the L/C Issuer for any amount drawn under any
Letter of Credit, interest in respect of such Lender’s Applicable Percentage of
such amount shall be solely for the account of the L/C Issuer.
 
(v) Each Lender’s obligation to make Committed Loans or L/C Advances to
reimburse the L/C Issuer for amounts drawn under Letters of Credit, as
contemplated by this Section 2.04(c), shall be absolute and unconditional and
shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Lender may have
against the L/C Issuer, the Borrower or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Committed Loans
pursuant to this Section 2.04(c) is subject to the conditions set forth in
Section 5.02 (other than delivery by the Borrower of a Committed Loan
Notice).  No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the Borrower to reimburse the L/C Issuer for the amount of any
payment made by the L/C Issuer under any Letter of Credit, together with
interest as provided herein.
 
(vi) If any Lender fails to make available to the Administrative Agent for the
account of the L/C Issuer any amount required to be paid by such Lender pursuant
to the foregoing provisions of this Section 2.04(c) by the time specified in
Section 2.04(c)(ii), then, without limiting the other provisions of this
Agreement, the L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to the L/C Issuer at a rate per annum equal to
the greater of the Federal Funds Rate and a rate determined by the L/C Issuer in
accordance with banking industry rules on interbank compensation, plus
 
 
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        any administrative, processing or similar fees customarily charged by
the L/C Issuer in connection with the foregoing.  If such Lender pays such
amount (with interest and fees as aforesaid), the amount so paid shall
constitute such Lender’s Committed Loan included in the relevant Committed
Borrowing or L/C Advance in respect of the
        relevant L/C Borrowing, as the case may be.  A certificate of the L/C
Issuer submitted to any Lender (through the Administrative Agent) with respect
to any amounts owing under this clause (vi) shall be conclusive absent manifest
error.
 
(d) Repayment of Participations.
 
(i) At any time after the L/C Issuer has made a payment under any Letter of
Credit and has received from any Lender such Lender’s L/C Advance in respect of
such payment in accordance with Section 2.04(c), if the Administrative Agent
receives for the account of the L/C Issuer any payment in respect of the related
Unreimbursed Amount or interest thereon (whether directly from the Borrower or
otherwise, including proceeds of Cash Collateral applied thereto by the
Administrative Agent), the Administrative Agent will distribute to such Lender
its Applicable Percentage thereof in the same funds as those received by the
Administrative Agent.
 
(ii) If any payment received by the Administrative Agent for the account of the
L/C Issuer pursuant to Section 2.04(c)(i) is required to be returned under any
of the circumstances described in Section 11.05 (including pursuant to any
settlement entered into by the L/C Issuer in its discretion), each Lender shall
pay to the Administrative Agent for the account of the L/C Issuer its Applicable
Percentage thereof on demand of the Administrative Agent, plus interest thereon
from the date of such demand to the date such amount is returned by such Lender,
at a rate per annum equal to the Federal Funds Rate from time to time in
effect.  The obligations of the Lenders under this clause shall survive the
payment in full of the Obligations and the termination of this Agreement.
 
(e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C
Issuer for each drawing under each Letter of Credit and to repay each L/C
Borrowing shall be absolute, unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all circumstances,
including the following:
 
(i) any lack of validity or enforceability of such Letter of Credit, this
Agreement, or any other Loan Document;
 
(ii) the existence of any claim, counterclaim, setoff, defense or other right
that the Borrower or any Subsidiary may have at any time against any beneficiary
or any transferee of such Letter of Credit (or any Person for whom any such
beneficiary or any such transferee may be acting), the L/C Issuer or any other
Person, whether in connection with this Agreement, the transactions contemplated
hereby or by such Letter of Credit or any agreement or instrument relating
thereto, or any unrelated transaction;
 
(iii) any draft, demand, certificate or other document presented under such
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect;
or any loss or delay in the
 
 
 
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        transmission or otherwise of any document required in order to make a
drawing under such Letter of Credit;
 
(iv) any payment by the L/C Issuer under such Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the
terms of such Letter of Credit; or any payment made by the L/C Issuer under such
Letter of Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law; or
 
(v) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing, including any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Borrower or any
Subsidiary.
 
The Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer.  The Borrower shall be
conclusively deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.  Notwithstanding the
foregoing, the Borrower shall not be precluded from asserting any claim for
direct damages suffered by the Borrower in determining whether a request
presented under any Letter of Credit issued by it complied with the terms of
such Letter of Credit, provided any  liability of the L/C Issuer shall be
subject to the determination by a court of competent jurisdiction by final and
nonappealable judgment that such direct damages resulted from the gross
negligence or willful misconduct of the L/C Issuer.
 
(f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document.  None of the L/C Issuer,
the Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable to any
Lender for (i) any action taken or omitted in connection herewith at the request
or with the approval of the Lenders or the Required Lenders, as applicable; (ii)
any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document.  The Borrower hereby assumes all risks of the acts or omissions
of any beneficiary or transferee with respect to its use of any Letter of
Credit; provided, however, that this assumption is not intended to, and shall
not, preclude the Borrower’s pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.  None
of the L/C Issuer, the Administrative Agent, any of their respective Related
Parties nor any correspondent, participant or assignee of the L/C Issuer shall
be liable or responsible for any of the matters described in clauses (i) through
(v) of Section 2.04(e); provided, however, that anything in such clauses to the
contrary notwithstanding, the Borrower may have a claim against the L/C Issuer,
and the L/C Issuer may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to
 
 
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consequential or exemplary, damages suffered by the Borrower which the Borrower
proves were caused by the L/C Issuer’s willful misconduct or gross negligence or
the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit.  In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary,
and the L/C Issuer shall not be responsible for the validity or sufficiency of
any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any reason.
 
(g) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C
Issuer and the Borrower when a Letter of Credit is issued (including any such
agreement applicable to an Existing Letter of Credit), the rules of the ISP
shall apply to each standby Letter of Credit.
 
(h) Letter of Credit Fees.  The Borrower shall pay to the Administrative Agent
for the account of each Lender in accordance with its Applicable Percentage a
Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit
equal to the Applicable Rate for Eurodollar Rate Committed Loans times the daily
amount available to be drawn under such Letter of Credit; provided, however, any
Letter of Credit Fees otherwise payable for the account of a Defaulting Lender
with respect to any Letter of Credit as to which such Defaulting Lender has not
provided Cash Collateral satisfactory to the L/C Issuer pursuant to this Section
2.04 shall be payable, to the maximum extent permitted by applicable Law, to the
other Lenders in accordance with the upward adjustments in their respective
Applicable Percentages allocable to such Letter of Credit pursuant to Section
2.18(a)(iv), with the balance of such fee, if any, payable to the L/C Issuer for
its own account.  For purposes of computing the daily amount available to be
drawn under any Letter of Credit, the amount of such Letter of Credit shall be
determined in accordance with Section 1.06.  Letter of Credit Fees shall be (i)
due and payable on the first Business Day after the end of each March, June,
September and December, commencing with the first such date to occur after the
issuance of such Letter of Credit, on the Letter of Credit Expiration Date and
thereafter on demand and (ii) computed on a quarterly basis in arrears.  If
there is any change in the Applicable Rate during any quarter, the daily amount
available to be drawn under each Letter of Credit shall be computed and
multiplied by the Applicable Rate separately for each period during such quarter
that such Applicable Rate was in effect.  Notwithstanding anything to the
contrary contained herein, upon the request of the Required Lenders, while any
Event of Default exists, all Letter of Credit Fees shall accrue at the Default
Rate.
 
(i) Documentary and Processing Charges Payable to L/C Issuer. The Borrower shall
pay directly to the L/C Issuer for its own account the customary issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of the L/C Issuer relating to letters of credit as from time to time in
effect.  Such customary fees and standard costs and charges are due and payable
on demand and are nonrefundable.
 
(j) Conflict with Issuer Documents.  In the event of any conflict between the
terms hereof and the terms of any Issuer Document, the terms hereof shall
control.
 
 
 
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2.05 Swing Line Loans.
 
(a) The Swing Line.  Subject to the terms and conditions set forth herein, the
Swing Line Lender, in reliance upon the agreements of the other Lenders set
forth in this Section 2.05, may in its sole discretion make loans (each such
loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day
during the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that
such Swing Line Loans, when aggregated with the Applicable Percentage of the
Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting
as Swing Line Lender, may exceed the amount of such Lender’s Commitment;
provided, however, that after giving effect to any Swing Line Loan, (i) the
Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Committed Loans of any Lender, plus such
Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing
Line Loans shall not exceed such Lender’s Commitment, and provided, further,
that the Borrower shall not use the proceeds of any Swing Line Loan to refinance
any outstanding Swing Line Loan.  Within the foregoing limits, and subject to
the other terms and conditions hereof, the Borrower may borrow under this
Section 2.05, prepay under Section 2.06, and reborrow under this Section
2.05.  Each Swing Line Loan shall be a Base Rate Loan.  Immediately upon the
making of a Swing Line Loan, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a
risk participation in such Swing Line Loan in an amount equal to the product of
such Lender’s Applicable Percentage times the amount of such Swing Line Loan.
 
(b) Borrowing Procedures.  Each Swing Line Borrowing shall be made upon the
Borrower’s irrevocable notice to the Swing Line Lender and the Administrative
Agent, which may be given by telephone.  Each such notice must be received by
the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on
the requested borrowing date, and shall specify (i) the amount to be borrowed,
which shall be a minimum of $100,000, and (ii) the requested borrowing date,
which shall be a Business Day.  Each such telephonic notice must be confirmed
promptly by delivery to the Swing Line Lender and the Administrative Agent of a
written Swing Line Loan Notice, appropriately completed and signed by a
Responsible Officer of the Borrower.  Promptly after receipt by the Swing Line
Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not,
the Swing Line Lender will notify the Administrative Agent (by telephone or in
writing) of the contents thereof.  Unless the Swing Line Lender has received
notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) prior to 2:00 p.m. on the date of the proposed Swing
Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line
Loan as a result of the limitations set forth in the first proviso to the first
sentence of Section 2.05(a), or (B) that one or more of the applicable
conditions specified in Article V is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender will, not later than 3:00
p.m. on the borrowing date specified in such Swing Line Loan Notice, make the
amount of its Swing Line Loan available to the Borrower at its office by
crediting the account of the Borrower on the books of the Swing Line Lender in
immediately available funds.  If such notice is received after 1:00 p.m. on the
requested borrowing date, then the Swing Line Lender shall use best efforts to
make the amount of its Swing Line Loan
 
 
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available to the Borrower by 10:00 a.m. on the following Business Day, to be
disbursed in the manner set forth above.
 
(c) Refinancing of Swing Line Loans.
 
(i) The Swing Line Lender at any time in its sole discretion may request, on
behalf of the Borrower (which hereby irrevocably authorizes the Swing Line
Lender to so request on its behalf), that each Lender make a Base Rate Committed
Loan in an amount equal to such Lender’s Applicable Percentage of the amount of
Swing Line Loans then outstanding.  Such request shall be made in writing (which
written request shall be deemed to be a Committed Loan Notice for purposes
hereof) and in accordance with the requirements of Section 2.02, without regard
to the minimum and multiples specified therein for the principal amount of Base
Rate Loans, but subject to the unutilized portion of the Aggregate Commitments
and the conditions set forth in Section 5.02.  The Swing Line Lender shall
furnish the Borrower with a copy of the applicable Committed Loan Notice
promptly after delivering such notice to the Administrative Agent.  Each Lender
shall make an amount equal to its Applicable Percentage of the amount specified
in such Committed Loan Notice available to the Administrative Agent in
immediately available funds (and the Administrative Agent may apply Cash
Collateral available with respect to the applicable Swing Line Loan) for the
account of the Swing Line Lender at the Administrative Agent’s Office not later
than 1:00 p.m. on the day specified in such Committed Loan Notice, whereupon,
subject to Section 2.05(c)(ii), each Lender that so makes funds available shall
be deemed to have made a Base Rate Committed Loan to the Borrower in such
amount.  The Administrative Agent shall remit the funds so received to the Swing
Line Lender.
 
(ii) If for any reason any Swing Line Loan cannot be refinanced by such a
Committed Borrowing in accordance with Section 2.05(c)(i), the request for Base
Rate Committed Loans submitted by the Swing Line Lender as set forth herein
shall be deemed to be a request by the Swing Line Lender that each of the
Lenders fund its risk participation in the relevant Swing Line Loan and each
Lender’s payment to the Administrative Agent for the account of the Swing Line
Lender pursuant to Section 2.05(c)(i) shall be deemed payment in respect of such
participation.
 
(iii) If any Lender fails to make available to the Administrative Agent for the
account of the Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.05(c) by the time
specified in Section 2.05(c)(i), the Swing Line Lender shall be entitled to
recover from such Lender (acting through the Administrative Agent), on demand,
such amount with interest thereon for the period from the date such payment is
required to the date on which such payment is immediately available to the Swing
Line Lender at a rate per annum equal to the greater of the Federal Funds Rate
and a rate determined by the Swing Line Lender in accordance with banking
industry rules on interbank compensation, plus any administrative, processing or
similar fees customarily charged by the Swing Line Lender in connection with the
foregoing.  If such Lender pays such amount (with interest and fees as
aforesaid), the amount so paid shall constitute such Lender’s Committed Loan
included in the relevant Committed Borrowing or funded participation in the
relevant
 
 
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        Swing Line Loan, as the case may be.  A certificate of the Swing Line
Lender submitted to any Lender (through the Administrative Agent) with respect
to any amounts owing under this clause (iii) shall be conclusive absent manifest
error.
 
(iv) Each Lender’s obligation to make Committed Loans or to purchase and fund
risk participations in Swing Line Loans pursuant to this Section 2.05(c) shall
be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right which
such Lender may have against the Swing Line Lender, the Borrower or any other
Person for any reason whatsoever, (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not similar
to any of the foregoing; provided, however, that each Lender’s obligation to
make Committed Loans pursuant to this Section 2.05(c) is subject to the
conditions set forth in Section 5.02.  No such funding of risk participations
shall relieve or otherwise impair the obligation of the Borrower to repay Swing
Line Loans, together with interest as provided herein.
 
(d) Repayment of Participations.
 
(i) At any time after any Lender has purchased and funded a risk participation
in a Swing Line Loan, if the Swing Line Lender receives any payment on account
of such Swing Line Loan, the Swing Line Lender will distribute to such Lender
its Applicable Percentage thereof in the same funds as those received by the
Swing Line Lender.
 
(ii) If any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line
Lender under any of the circumstances described in Section 11.05 (including
pursuant to any settlement entered into by the Swing Line Lender in its
discretion), each Lender shall pay to the Swing Line Lender its Applicable
Percentage thereof on demand of the Administrative Agent, plus interest thereon
from the date of such demand to the date such amount is returned, at a rate per
annum equal to the Federal Funds Rate.  The Administrative Agent will make such
demand upon the request of the Swing Line Lender.  The obligations of the
Lenders under this clause shall survive the payment in full of the Obligations
and the termination of this Agreement.
 
(e) Interest for Account of Swing Line Lender.  The Swing Line Lender shall be
responsible for invoicing the Borrower for interest on the Swing Line
Loans.  Until each Lender funds its Base Rate Committed Loan or risk
participation pursuant to this Section 2.05 to refinance such Lender’s
Applicable Percentage of any Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Swing Line Lender.
 
(f) Payments Directly to Swing Line Lender.  The Borrower shall make all
payments of principal and interest in respect of the Swing Line Loans directly
to the Swing Line Lender.
 
2.06 Prepayments.
 
(a) The Borrower may, upon notice to the Administrative Agent, at any time or
from time to time voluntarily prepay Committed Loans in whole or in part without
premium or penalty; provided that (i) such notice must be received by the
Administrative Agent not later than
 
 
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11:00 a.m. (A) three Business Days prior to any date of prepayment of Eurodollar
Rate Committed Loans and (B) on the date of prepayment of Base Rate Committed
Loans; (ii) any prepayment of Eurodollar Rate Committed Loans shall be in a
principal amount of $2,000,000 or a whole multiple of $500,000 in excess
thereof; and (iii) any prepayment of Base Rate Committed Loans shall be in a
principal amount of $100,000 or a whole multiple of $100,000 in excess thereof
or, in each case, if less, the entire principal amount thereof then
outstanding.  Each such notice shall specify the date and amount of such
prepayment and the Type(s) of Committed Loans to be prepaid and, if Eurodollar
Rate Committed Loans are to be prepaid, the Interest Period(s) of such
Loans.  The Administrative Agent will promptly notify each Lender of its receipt
of each such notice, and of the amount of such Lender’s Applicable Percentage of
such prepayment.  Unless Borrower revokes such notice at least one (1) Business
Day prior to the specified prepayment date, the Borrower shall make such
prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein.  Any prepayment of a Eurodollar Rate Loan
shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05.  Subject to
Section 2.18, each such prepayment shall be applied to the Committed Loans of
the Lenders in accordance with their respective Applicable Percentages.
 
(b) The Borrower may, upon notice to the Swing Line Lender (with a copy to the
Administrative Agent), at any time or from time to time, voluntarily prepay
Swing Line Loans in whole or in part without premium or penalty; provided that
(i) such notice must be received by the Swing Line Lender and the Administrative
Agent not later than 1:00 p.m. on the date of the prepayment, and (ii) any such
prepayment shall be in a minimum principal amount of $100,000.  Each such notice
shall specify the date and amount of such prepayment.  If such notice is given
by the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein.
 
(c) If for any reason the Total Outstandings at any time exceed the Maximum
Availability then in effect, the Borrower shall within three (3) Business Days
after notice from the Administrative Agent prepay Loans and/or Cash
Collateralize the L/C Obligations in an aggregate amount equal to such excess;
provided, however, that the Borrower shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.06(c) unless after the prepayment
in full of the Committed Loans and Swing Line Loans the Total Outstandings
exceed the Maximum Availability then in effect.
 
2.07 Termination or Reduction of Commitments. The Borrower may, upon notice to
the Administrative Agent, terminate the Aggregate Commitments, or from time to
time permanently reduce the Aggregate Commitments; provided that (i) any such
notice shall be received by the Administrative Agent not later than 11:00 a.m.
five Business Days prior to the date of termination or reduction, provided,
however, the Borrower may revoke such notice prior to the scheduled date of
termination or reduction, (ii) any such partial reduction shall be in an
aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess
thereof, (iii) the Borrower shall not terminate or reduce the Aggregate
Commitments if, after giving effect thereto and to any concurrent prepayments
hereunder, the Total Outstandings would exceed the Aggregate Commitments, and
(iv) if, after giving effect to any reduction of the Aggregate Commitments, the
Letter of Credit Sublimit or the Swing Line Sublimit exceeds the amount of the
Aggregate Commitments, such Sublimit shall be automatically reduced by the
amount of
 
 
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such excess.  The Administrative Agent will promptly notify the Lenders of any
such notice of termination or reduction of the Aggregate Commitments.  Any
reduction of the Aggregate Commitments shall be applied to the Commitment of
each Lender according to its Applicable Percentage.  All fees accrued until the
effective date of any termination of the Aggregate Commitments shall be paid on
the effective date of such termination.
 
2.08 Repayment of Loans.
 
(a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate
principal amount of Committed Loans outstanding on such date.
 
(b) The Borrower shall repay each Swing Line Loan on the earlier to occur of (i)
the date five (5) Business Days after such Loan is made and (ii) the Maturity
Date.
 
2.09 Interest.
 
(a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate
Committed Loan shall bear interest on the outstanding principal amount thereof
for each Interest Period at a rate per annum equal to the Eurodollar Rate for
such Interest Period plus the Applicable Rate; (ii) each Base Rate Committed
Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate.
 
(b) (i)           If any amount of principal of any Loan is not paid when due
(subject to any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.
 
(ii) If any amount (other than principal of any Loan) payable by the Borrower
under any Loan Document is not paid when due (subject to any applicable grace
periods), whether at stated maturity, by acceleration or otherwise, then upon
the request of the Required Lenders, such amount shall thereafter bear interest
at a fluctuating interest rate per annum at all times equal to the Default Rate
to the fullest extent permitted by applicable Laws.
 
(iii) While any Event of Default exists pursuant to Section 9.01(a)(i) or (f),
the Borrower shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.
 
(iv) Upon the request of the Required Lenders, while any other Event of Default
exists, the Borrower shall pay interest on the principal amount of all
outstanding Obligations hereunder at a fluctuating interest rate per annum at
all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.
 
 
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(v) Accrued and unpaid interest on past due amounts (including interest on past
due interest) shall be due and payable upon demand.
 
(c) Interest on each Loan shall be due and payable in arrears on each Interest
Payment Date applicable thereto and at such other times as may be specified
herein.  Interest hereunder shall be due and payable in accordance with the
terms hereof before and after judgment, and before and after the commencement of
any proceeding under any Debtor Relief Law.
 
2.10 Fees.  In addition to certain fees described in subsections (h) and (i) of
Section 2.04:
 
(a) Unused Fee. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, an unused
fee equal to the applicable Unused Rate times the actual daily amount by which
the Aggregate Commitments exceed the sum of (i) the Outstanding Amount of
Committed Loans and (ii) the Outstanding Amount of L/C Obligations, subject to
adjustment as provided in Section 2.18.  The unused fee shall accrue at all
times during the Availability Period, including at any time during which one or
more of the conditions in Article V is not met, and shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the last day of the Availability Period.  The unused fee shall be
calculated quarterly in arrears, and if there is any change in the Daily Usage
during any quarter, the actual daily amount shall be computed and multiplied by
the Unused Rate separately for each period during such quarter that such Unused
Rate was in effect.
 
(b) Other Fees. (i) The Borrower shall pay to the Arranger, the Lenders and the
Administrative Agent for their own respective accounts fees in the amounts and
at the times specified in the Fee Letter.  Such fees shall be fully earned when
paid and shall not be refundable for any reason whatsoever.
 
(ii) The Borrower shall pay to the Lenders such fees as shall have been
separately agreed upon in writing in the amounts and at the times so
specified.  Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.
 
2.11 Computation of Interest and Fees; Retroactive Adjustments of Applicable
Rate.
 
(a)           All computations of interest for Base Rate Loans (including Base
Rate Loans determined by reference to the Eurodollar Rate) shall be made on the
basis of a year of 365 or 366 days, as the case may be, and actual days
elapsed.  All other computations of fees and interest shall be made on the basis
of a 360-day year and actual days elapsed (which results in more fees or
interest, as applicable, being paid than if computed on the basis of a 365-day
year).  Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid, provided that any Loan that is repaid on
the same day on which it is made shall, subject to Section 2.13(a), bear
interest for one day.  Each determination by the Administrative Agent of an
interest rate or fee hereunder shall be conclusive and binding for all purposes,
absent manifest error.
 
 
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(b)           If, as a result of any restatement of or other adjustment to the
financial statements of the Borrower or for any other reason, the Borrower or
the Lenders determine that (i) the Leverage Ratio as calculated by the Borrower
as of any applicable date was inaccurate and (ii) a proper calculation of the
Leverage Ratio would have resulted in higher pricing for such period, the
Borrower shall immediately and retroactively be obligated to pay to the
Administrative Agent for the account of the applicable Lenders or the L/C
Issuer, as the case may be, promptly on demand by the Administrative Agent (or,
after the occurrence of an actual or deemed entry of an order for relief with
respect to the Borrower under the Bankruptcy Code of the United States,
automatically and without further action by the Administrative Agent, any Lender
or the L/C Issuer), an amount equal to the excess of the amount of interest and
fees that should have been paid for such period over the amount of interest and
fees actually paid for such period.  This paragraph shall not limit the rights
of the Administrative Agent, any Lender or the L/C Issuer, as the case may be,
under Section 2.04(c)(iii), 2.04(h) or 2.09(b) or under Article IX.  The
Borrower’s obligations under this paragraph shall survive the termination of the
Aggregate Commitments and the repayment of all other Obligations hereunder.
 
2.12 Evidence of Debt.
 
(a) The Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent in
the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrower and
the interest and payments thereon.  Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the Obligations.  In
the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error.  Upon the request of any Lender made through
the Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a Note, which shall evidence such Lender’s
Loans in addition to such accounts or records.  Each Lender may attach schedules
to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Loans and payments with respect thereto.
 
(b) In addition to the accounts and records referred to in subsection (a), each
Lender and the Administrative Agent shall maintain in accordance with its usual
practice accounts or records evidencing the purchases and sales by such Lender
of participations in Letters of Credit and Swing Line Loans.  In the event of
any conflict between the accounts and records maintained by the Administrative
Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of
manifest error.
 
2.13 Payments Generally; Administrative Agent’s Clawback.
 
(a) General.  All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or
setoff.  Except as otherwise expressly provided herein, all payments by the
Borrower hereunder shall be made to the
 
 
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Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the Administrative Agent’s Office in Dollars and in
immediately available funds not later than 2:00 p.m. on the date specified
herein.  The Administrative Agent will promptly distribute to each Lender its
Applicable Percentage (or other applicable share as provided herein) of such
payment in like funds as received by wire transfer to such Lender’s Lending
Office.  All payments received by the Administrative Agent after 2:00 p.m. shall
be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue.  If any payment to be made by the
Borrower shall come due on a day other than a Business Day, payment shall be
made on the next following Business Day, and such extension of time shall be
reflected in computing interest or fees, as the case may be.
 
(b) (i)  Funding by Lenders; Presumption by Administrative Agent.  Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Committed Borrowing of Eurodollar Rate Loans (or, in the
case of any Committed Borrowing of Base Rate Loans, prior to 12:00 noon on the
date of such Committed Borrowing) that such Lender will not make available to
the Administrative Agent such Lender’s share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section 2.02 (or, in the case of a Committed
Borrowing of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may, in reliance
upon such assumption, make available to the Borrower a corresponding amount.  In
such event, if a Lender has not in fact made its share of the applicable
Committed Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount in immediately available funds
with interest thereon, for each day from and including the date such amount is
made available to the Borrower to but excluding the date of payment to the
Administrative Agent, at (A) in the case of a payment to be made by such Lender,
the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily
charged by the Administrative Agent in connection with the foregoing, and (B) in
the case of a payment to be made by the Borrower, the interest rate applicable
to Base Rate Loans.  If the Borrower and such Lender shall pay such interest to
the Administrative Agent for the same or an overlapping period, the
Administrative Agent shall promptly remit to the Borrower the amount of such
interest paid by the Borrower for such period.  If such Lender pays its share of
the applicable Committed Borrowing to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Committed Loan included in such Committed
Borrowing.  Any payment by the Borrower shall be without prejudice to any claim
the Borrower may have against a Lender that shall have failed to make such
payment to the Administrative Agent.
 
(ii) Payments by Borrower; Presumptions by Administrative Agent.  Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders or the L/C Issuer hereunder that the Borrower will not make such
payment, the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the
amount due.  In such event, if the Borrower has not in fact made such payment,
then each of the Lenders or the L/C Issuer,
 
 
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        as the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Lender or the L/C
Issuer, in immediately available funds with interest thereon, for each day from
and including the date such amount is distributed to it to but excluding the
date of payment to the Administrative
        Agent, at the greater of the Federal Funds Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules on interbank
compensation.
 
A notice of the Administrative Agent to any Lender or the Borrower with respect
to any amount owing under this subsection (b) shall be conclusive, absent
manifest error.
 
(c) Failure to Satisfy Conditions Precedent.  If any Lender makes available to
the Administrative Agent funds for any Loan to be made by such Lender as
provided in the foregoing provisions of this Article II, and such funds are not
made available to the Borrower by the Administrative Agent because the
conditions to the applicable Credit Extension set forth in Article V are not
satisfied or waived in accordance with the terms hereof, the Administrative
Agent shall return such funds (in like funds as received from such Lender) to
such Lender, without interest.
 
(d) Obligations of Lenders Several.  The obligations of the Lenders hereunder to
make Committed Loans, to fund participations in Letters of Credit and Swing Line
Loans and to make payments pursuant to Section 11.04(c) are several and not
joint.  The failure of any Lender to make any Committed Loan, to fund any such
participation or to make any payment under Section 11.04(c) on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to
do so on such date, and no Lender shall be responsible for the failure of any
other Lender to so make its Committed Loan, to purchase its participation or to
make its payment under Section 11.04(c).
 
(e) Funding Source.  Nothing herein shall be deemed to obligate any Lender to
obtain the funds for any Loan in any particular place or manner or to constitute
a representation by any Lender that it has obtained or will obtain the funds for
any Loan in any particular place or manner.
 
2.14 Sharing of Payments by Lenders.  If any Lender shall, by exercising any
right of setoff or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of the Committed Loans made by it, or the
participations in L/C Obligations or in Swing Line Loans held by it resulting in
such Lender’s receiving payment of a proportion of the aggregate amount of such
Committed Loans or participations and accrued interest thereon greater than its
pro rata share thereof as provided herein, then the Lender receiving such
greater proportion shall (a) notify the Administrative Agent of such fact, and
(b) purchase (for cash at face value) participations in the Committed Loans and
subparticipations in L/C Obligations and Swing Line Loans of the other Lenders,
or make such other adjustments as shall be equitable, so that the benefit of all
such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Committed Loans and other amounts owing them, provided that:
 
 
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(i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and
 
(ii) the provisions of this Section shall not be construed to apply to (x) any
payment made by or on behalf of the Borrower pursuant to and in accordance with
the express terms of this Agreement (including the application of funds arising
from the existence of a Defaulting Lender), (y) the application of Cash
Collateral provided for in Section 2.17, or (z) any payment obtained by a Lender
as consideration for the assignment of or sale of a participation in any of its
Committed Loans or subparticipations in L/C Obligations or Swing Line Loans to
any assignee or participant, other than an assignment to the Borrower or any
Subsidiary thereof (as to which the provisions of this Section shall apply).
 
Each Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.
 
2.15 Extension of Maturity Date.   Subject to the provisions of this Section
2.15, the Borrower shall have the option to extend the Maturity Date then in
effect hereunder (the “Existing Maturity Date”), for an additional one (1) year
from the Existing Maturity Date (the “Extension Option”), subject to the
satisfaction of each of the following conditions:
 
(a) At least thirty (30) days and not more than ninety (90) days prior to the
Existing Maturity Date the Borrower shall notify the Administrative Agent of its
exercise of the Extension Option;
 
(b) As of the date of the Borrower’s request to exercise the Extension Option
and as of the Existing Maturity Date no Default shall have occurred and be
continuing;
 
(c) the Borrower shall deliver to the Administrative Agent a certificate of each
Loan Party dated as of the Existing Maturity Date  signed by a Responsible
Officer of such Loan Party (i) certifying and attaching the resolutions adopted
by such Loan Party approving or consenting to such extension and (ii) in the
case of the Borrower, certifying that, before and after giving effect to such
extension, (A) the representations and warranties contained in Article VI and
the other Loan Documents are true and correct in all material respects on and as
of the Existing Maturity Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are
true and correct in all material respects as of such earlier date, and except
that for purposes of this Section 2.15, the representations and warranties
contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer to
the most recent statements furnished pursuant to subsections (a) and (b),
respectively, of Section 7.01, and (B) no Default exists;
 
 
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(d) No later than Existing Maturity Date the Borrower shall have paid to the
Administrative Agent (for the pro rata benefit of the Lenders) an extension fee
in the amount of 0.20% of the then Aggregate Commitments; and
 
(e) The Borrower shall have paid all reasonable out-of-pocket costs and expenses
incurred by the Administrative Agent and all reasonable fees and expenses paid
to third party consultants (including reasonable attorneys’ fees and expenses)
incurred by the Administrative Agent in connection with such extension.
 
2.16 Increase in Commitments.
 
(a) Request for Increase.  Provided there exists no Default, upon notice to the
Administrative Agent (which shall promptly notify the Lenders), the
Administrative Agent and the Lenders agree that the Borrower may from time to
time, request an increase by an amount (for all such requests) not exceeding
$20,000,000 in the aggregate; provided that (i) any such request for an increase
shall be in a minimum amount of $10,000,000, and (ii) the Borrower may make a
maximum of two such requests.  At the time of sending such notice, the Borrower
(in consultation with the Administrative Agent) shall specify the time period
within which each Lender is requested to respond (which shall in no event be
less than ten Business Days from the date of delivery of such notice to the
Lenders).
 
(b) Lender Elections to Increase.  Each Lender shall notify the Administrative
Agent within such time period whether or not it agrees to increase its
Commitment and, if so, whether by an amount equal to, greater than, or less than
its Applicable Percentage of such requested increase.  Any Lender not responding
within such time period shall be deemed to have declined to increase its
Commitment.
 
(c) Notification by Administrative Agent; Additional Lenders.  The
Administrative Agent shall notify the Borrower and each Lender of the Lenders’
responses to each request made hereunder.  To achieve the full amount of a
requested increase and subject to the approval of the Administrative Agent, the
L/C Issuer and the Swing Line Lender (which approvals shall not be unreasonably
withheld), the Borrower may also invite additional Eligible Assignees to become
Lenders pursuant to a joinder agreement in form and substance satisfactory to
the Administrative Agent and its counsel.
 
(d) Effective Date and Allocations.  If the Aggregate Commitments are increased
in accordance with this Section, the Administrative Agent and the Borrower shall
determine the effective date (the “Increase Effective Date”) and the final
allocation of such increase.  The Administrative Agent shall promptly notify the
Borrower and the Lenders of the final allocation of such increase and the
Increase Effective Date.
 
(e) Conditions to Effectiveness of Increase.  As a condition precedent to such
increase, the Borrower shall deliver to the Administrative Agent a certificate
of each Loan Party dated as of the Increase Effective Date (in sufficient copies
for each Lender) signed by a Responsible Officer of such Loan Party (x)
certifying and attaching the resolutions adopted by such Loan Party approving or
consenting to such increase, and (y) in the case of the Borrower, certifying
that, before and after giving effect to such increase, (A) the representations
and
 
 
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warranties contained in Article V and the other Loan Documents are true and
correct in all material respects on and as of the Increase Effective Date,
except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they are true and correct in all material
respects as of such earlier date, and except that for purposes of this Section
2.16, the representations and warranties contained in subsections (a) and (b) of
Section 6.05 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 7.01, and (B) no
Default exists.  The Borrower shall prepay any Committed Loans outstanding on
the Increase Effective Date (and pay any additional amounts required pursuant to
Section 3.05) to the extent necessary to keep the outstanding Committed Loans
ratable with any revised Applicable Percentages arising from any nonratable
increase in the Commitments under this Section.  Administrative Agent shall
adjust the Applicable Percentages accordingly.
 
(f) Conflicting Provisions.  This Section shall supersede any provisions in
Section 2.14 or 11.01 to the contrary.
 
2.17 Cash Collateral.
 
(a) Certain Credit Support Events.  Upon the request of the Administrative Agent
or the L/C Issuer (i) if the L/C Issuer has honored any full or partial drawing
request under any Letter of Credit and such drawing has resulted in an L/C
Borrowing and a Committed Borrowing has not been made in accordance with Section
2.04(c)(i), or (ii) if, as of the Letter of Credit Expiration Date, any L/C
Obligation for any reason remains outstanding, the Borrower shall, in each case,
immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations.  At any time that there shall exist a Defaulting Lender,
immediately upon the request of the Administrative Agent, the L/C Issuer or the
Swing Line Lender, the Borrower shall deliver to the Administrative Agent Cash
Collateral in an amount sufficient to cover all Fronting Exposure (after giving
effect to Section 2.18(a)(iv) and any Cash Collateral provided by the Defaulting
Lender).
 
(b) Grant of Security Interest.  All Cash Collateral (other than credit support
not constituting funds subject to deposit) shall be maintained in blocked,
non-interest bearing deposit accounts at Bank of America.  The Borrower, and to
the extent provided by any Lender, such Lender, hereby grants to (and subjects
to the control of) the Administrative Agent, for the benefit of the
Administrative Agent, the L/C Issuer and the Lenders (including the Swing Line
Lender), and agrees to maintain, a first priority security interest in all such
cash, deposit accounts and all balances therein, and all other property so
provided as collateral pursuant hereto, and in all proceeds of the foregoing,
all as security for the obligations to which such Cash Collateral may be applied
pursuant to Section 2.17(c).  If at any time the Administrative Agent determines
that Cash Collateral is subject to any right or claim of any Person other than
the Administrative Agent as herein provided, or that the total amount of such
Cash Collateral is less than the applicable Fronting Exposure and other
obligations secured thereby, the Borrower will, promptly upon demand by the
Administrative Agent, pay or provide to the Administrative Agent additional Cash
Collateral in an amount sufficient to eliminate such deficiency.
 
(c) Application. Notwithstanding anything to the contrary contained in this
Agreement, Cash Collateral provided under any of this Section 2.17 or Sections
2.04, 2.05, 2.06,
 
 
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2.18 or 9.02 in respect of Letters of Credit or Swing Line Loans shall be held
and applied to the satisfaction of the specific L/C Obligations, Swing Line
Loans, obligations to fund participations therein (including, as to Cash
Collateral provided by a Defaulting Lender, any interest accrued on such
obligation) and other obligations for which the Cash Collateral was so provided,
prior to any other application of such property as may be provided for herein.
 
(d) Release.  Cash Collateral (or the appropriate portion thereof) provided to
reduce Fronting Exposure or other obligations shall be released or reduced
promptly following (i) the elimination or reduction of the applicable Fronting
Exposure or other obligations giving rise thereto (including by the termination
of Defaulting Lender status of the applicable Lender (or, as appropriate, its
assignee following compliance with Section 11.06(b)(vi))) or (ii) the
Administrative Agent’s good faith determination that there exists excess Cash
Collateral; provided, however, (x) that Cash Collateral furnished by or on
behalf of a Loan Party shall not be released during the continuance of a Default
or Event of Default (and following application as provided in this Section 2.17
may be otherwise applied in accordance with Section 9.03), and (y) the Person
providing Cash Collateral and the L/C Issuer or Swing Line Lender, as
applicable, may agree that Cash Collateral shall not be released but instead
held to support future anticipated Fronting Exposure or other obligations.
 
2.18 Defaulting Lenders.
 
(a) Adjustments.  Notwithstanding anything to the contrary contained in this
Agreement, if any Lender becomes a Defaulting Lender, then, until such time as
that Lender is no longer a Defaulting Lender, to the extent permitted by
applicable Law:
 
(i) Waivers and Amendments.  That Defaulting Lender’s right to approve or
disapprove any amendment, waiver or consent with respect to this Agreement shall
be restricted as set forth in Section 11.01.
 
(ii) Reallocation of Payments.  Any payment of principal, interest, fees or
other amounts received by the Administrative Agent for the account of that
Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to
Article IX or otherwise, and including any amounts made available to the
Administrative Agent by that Defaulting Lender pursuant to Section 11.08), shall
be applied at such time or times as may be determined by the Administrative
Agent as follows: first, to the payment of any amounts owing by that Defaulting
Lender to the Administrative Agent hereunder; second, to the payment on a pro
rata basis of any amounts owing by that Defaulting Lender to the L/C Issuer or
Swing Line Lender hereunder; third, if so determined by the Administrative Agent
or requested by the L/C Issuer or Swing Line
 
 
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        Lender, to be held as Cash Collateral for future funding obligations of
that Defaulting Lender of any participation in any Swing Line Loan or Letter of
Credit; fourth, as the Borrower may request (so long as no Default or Event of
Default exists), to the funding of any Loan in respect of which that Defaulting
Lender has failed to fund its portion thereof as required by this Agreement, as
determined by the Administrative Agent; fifth, if so determined by the
Administrative Agent and the Borrower, to be held in a non-interest bearing
deposit account and released in order to satisfy obligations of that Defaulting
Lender to fund Loans under this Agreement; sixth, to the payment of any amounts
owing to the Lenders, the L/C Issuer or Swing Line Lender as a result of any
judgment of a court of competent jurisdiction obtained by any Lender, the L/C
Issuer or Swing Line Lender against that Defaulting Lender as a result of that
Defaulting Lender’s breach of its obligations under this Agreement; seventh, so
long as no Default or Event of Default exists, to the payment of any amounts
owing to the Borrower as a result of any judgment of a court of competent
jurisdiction obtained by the Borrower against that Defaulting Lender as a result
of that Defaulting Lender’s breach of its obligations under this Agreement; and
eighth, to that Defaulting Lender or as otherwise directed by a court of
competent jurisdiction; provided that if (x) such payment is a payment of the
principal amount of any Loans or L/C Borrowings in respect of which that
Defaulting Lender has not fully funded its appropriate share and (y) such Loans
or L/C Borrowings were made at a time when the conditions set forth in Section
5.02 were satisfied or waived, such payment shall be applied solely to pay the
Loans of, and L/C Borrowings owed to, all non-Defaulting Lenders on a pro rata
basis prior to being applied to the payment of any Loans of, or L/C Borrowings
owed to, that Defaulting Lender.  Any payments, prepayments or other amounts
paid or payable to a Defaulting Lender that are applied (or held) to pay amounts
owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section
2.18(a)(ii) shall be deemed paid to and redirected by that Defaulting Lender,
and each Lender irrevocably consents hereto.
 
(iii) Certain Fees.  That Defaulting Lender (x) shall not be entitled to receive
any unused fee pursuant to Section 2.10(a) for any period during which that
Lender is a Defaulting Lender (and the Borrower shall not be required to pay any
such fee that otherwise would have been required to have been paid to that
Defaulting Lender) and the Borrower shall (A) be required to pay to each of the
L/C Issuer and the Swing Line Lender, as applicable, the amount of such fee
allocable to its Fronting Exposure arising from that Defaulting Lender and (B)
not be required to pay the remaining amount of such fee that otherwise would
have been required to have been paid to that Defaulting Lender) and (y) shall be
limited in its right to receive Letter of Credit Fees as provided in Section
2.04(h).
 
(iv) Reallocation of Applicable Percentages to Reduce Fronting Exposure.  During
any period in which there is a Defaulting Lender, for purposes of computing the
amount of the obligation of each non-Defaulting Lender to acquire, refinance or
fund participations in Letters of Credit or Swing Line Loans pursuant to
Sections 2.04 and 2.05, the “Applicable Percentage” of each non-Defaulting
Lender shall be computed without giving effect to the Commitment of that
Defaulting Lender; provided, that, (i) each such reallocation shall be given
effect only if, at the date the applicable Lender becomes a Defaulting Lender,
no Default or Event of Default exists; and (ii) the aggregate obligation of each
non-Defaulting Lender to acquire, refinance or fund participations in Letters of
Credit and Swing Line Loans shall not exceed the positive difference, if any, of
(1) the Commitment of that non-Defaulting Lender minus (2) the aggregate
Outstanding Amount of the Committed Loans of that Lender.
 
(b) Defaulting Lender Cure. If the Borrower, the Administrative Agent, Swing
Line Lender and the L/C Issuer agree in writing in their sole discretion that a
Defaulting Lender should no longer be deemed to be a Defaulting Lender, the
Administrative Agent will so notify the parties hereto, whereupon as of the
effective date specified in such notice and subject to any
 
 
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conditions set forth therein (which may include arrangements with respect to any
Cash Collateral), that Lender will, to the extent applicable, purchase that
portion of outstanding Loans of the other Lenders or take such other actions as
the Administrative Agent may determine to be necessary to cause the Committed
Loans and funded and unfunded participations in Letters of Credit and Swing Line
Loans to be held on a pro rata basis by the Lenders in accordance with their
Applicable Percentages (without giving effect to Section 2.18(a)(iv)), whereupon
that Lender will cease to be a Defaulting Lender; provided that no adjustments
will be made retroactively with respect to fees accrued or payments made by or
on behalf of the Borrower while that Lender was a Defaulting Lender; and
provided, further, that except to the extent otherwise expressly agreed by the
affected parties, no change hereunder from Defaulting Lender to Lender will
constitute a waiver or release of any claim of any party hereunder arising from
that Lender’s having been a Defaulting Lender.
 
ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
 
3.01 Taxes.
 
(a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of
Taxes.  (i) Any and all payments by or on account of any obligation of the
Borrower hereunder or under any other Loan Document shall to the extent
permitted by applicable Laws be made free and clear of and without reduction or
withholding for any Taxes.  If, however, applicable Laws require the Borrower or
the Administrative Agent to withhold or deduct any Tax, such Tax shall be
withheld or deducted in accordance with such Laws as determined by the Borrower
or the Administrative Agent, as the case may be, upon the basis of the
information and documentation to be delivered pursuant to subsection (e) below.
 
(ii) If the Borrower or the Administrative Agent shall be required by the Code
to withhold or deduct any Taxes, including both United States Federal backup
withholding and withholding taxes, from any payment, then (A) the Administrative
Agent shall withhold or make such deductions as are determined by the
Administrative Agent to be required based upon the information and documentation
it has received pursuant to subsection (e) below, (B) the Administrative Agent
shall timely pay the full amount withheld or deducted to the relevant
Governmental Authority in accordance with the Code, and (C) to the extent that
the withholding or deduction is made on account of Indemnified Taxes or Other
Taxes, the sum payable by the Borrower shall be increased as necessary so that
after any required withholding or the making of all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an
amount equal to the sum it would have received had no such withholding or
deduction been made.
 
(b) Payment of Other Taxes by the Borrower.  Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable Laws.
 
(c) Tax Indemnifications.  (i) Without limiting the provisions of subsection (a)
or (b) above, the Borrower shall, and does hereby, indemnify the Administrative
Agent, each Lender
 
 
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        and the L/C Issuer, and shall make payment in respect thereof within 10
days after demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) withheld or deducted by
the Borrower or the Administrative Agent or paid by the Administrative Agent,
such Lender or the L/C Issuer, as the case may be, and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  The Borrower shall also, and
does hereby, indemnify the Administrative Agent, and shall make payment in
respect thereof within 10 days after demand therefor, for any amount which a
Lender or the L/C Issuer for any reason fails to pay indefeasibly to the
Administrative Agent as required by clause (ii) of this subsection.  A
certificate as to the amount of any such payment or liability delivered to the
Borrower by a Lender or the L/C Issuer (with a copy to the Administrative
Agent), or by the Administrative Agent on its own behalf or on behalf of a
Lender or the L/C Issuer, shall be conclusive absent manifest error.
 
(ii) Without limiting the provisions of subsection (a) or (b) above, each Lender
and the L/C Issuer shall, and does hereby, indemnify the Borrower and the
Administrative Agent, and shall make payment in respect thereof within 10 days
after demand therefor, against any and all Taxes and any and all related losses,
claims, liabilities, penalties, interest and expenses (including the fees,
charges and disbursements of any counsel for the Borrower or the Administrative
Agent) incurred by or asserted against the Borrower or the Administrative Agent
by any Governmental Authority as a result of the failure by such Lender or the
L/C Issuer, as the case may be, to deliver, or as a result of the inaccuracy,
inadequacy or deficiency of, any documentation required to be delivered by such
Lender or the L/C Issuer, as the case may be, to the Borrower or the
Administrative Agent pursuant to subsection (e).  Each Lender and the L/C Issuer
hereby authorizes the Administrative Agent to set off and apply any and all
amounts at any time owing to such Lender or the L/C Issuer, as the case may be,
under this Agreement or any other Loan Document against any amount due to the
Administrative Agent under this clause (ii).  The agreements in this clause (ii)
shall survive the resignation and/or replacement of the Administrative Agent,
any assignment of rights by, or the replacement of, a Lender or the L/C Issuer,
the termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all other Obligations.
 
(d) Evidence of Payments.  Upon request by the Borrower or the Administrative
Agent, as the case may be, after any payment of Taxes by the Borrower or by the
Administrative Agent to a Governmental Authority as provided in this Section
3.01, the Borrower shall deliver to the Administrative Agent or the
Administrative Agent shall deliver to the Borrower, as the case may be, the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Laws to report such
payment or other evidence of such payment reasonably satisfactory to the
Borrower or the Administrative Agent, as the case may be.
 
(e) Status of Lenders; Tax Documentation.  (i)  Each Lender shall deliver to the
Borrower and to the Administrative Agent, at the time or times prescribed by
applicable Laws or when reasonably requested by the Borrower or the
Administrative Agent, such properly
 
 
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completed and executed documentation prescribed by applicable Laws or by the
taxing authorities of any jurisdiction and such other reasonably requested
information as will permit the Borrower or the Administrative Agent, as the case
may be, to determine (A) whether or not payments made hereunder or under any
other Loan Document are subject to Taxes, (B) if applicable, the required rate
of withholding or deduction, and (C) such Lender’s entitlement to any available
exemption from, or reduction of, applicable Taxes in respect of all payments to
be made to such Lender by the Borrower pursuant to this Agreement or otherwise
to establish such Lender’s status for withholding tax purposes in the applicable
jurisdiction.
 
(ii) Without limiting the generality of the foregoing, if the Borrower is
resident for tax purposes in the United States,
 
(A) any Lender that is a “United States person” within the meaning of Section
7701(a)(30) of the Code shall deliver to the Borrower and the Administrative
Agent executed originals of Internal Revenue Service Form W-9 or such other
documentation or information prescribed by applicable Laws or reasonably
requested by the Borrower or the Administrative Agent as will enable the
Borrower or the Administrative Agent, as the case may be, to determine whether
or not such Lender is subject to backup withholding or information reporting
requirements; and
 
(B) each Foreign Lender that is entitled under the Code or any applicable treaty
to an exemption from or reduction of withholding tax with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the
Borrower or the Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:
 
(I)           executed originals of Internal Revenue Service Form W-8BEN
claiming eligibility for benefits of an income tax treaty to which the United
States is a party,
 
(II)           executed originals of Internal Revenue Service Form W-8ECI,
 
(III)           executed originals of Internal Revenue Service Form W-8IMY and
all required supporting documentation,
 
(IV)           in the case of a Foreign Lender claiming the benefits of the
exemption for portfolio interest under section 881(c) of the Code, (x) a
certificate to the effect that such Foreign Lender is not (A) a “bank” within
the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder”
of the Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a
“controlled foreign corporation” described in section
 
 
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                        881(c)(3)(C) of the Code and (y) executed originals
of  Internal Revenue Service Form W-8BEN, or
 
(V)           executed originals of any other form prescribed by applicable Laws
as a basis for claiming exemption from or a reduction in United States Federal
withholding tax together with such supplementary documentation as may be
prescribed by applicable Laws to permit the Borrower or the Administrative Agent
to determine the withholding or deduction required to be made.
 
(iii) Each Lender shall promptly (A) notify the Borrower and the Administrative
Agent of any change in circumstances which would modify or render invalid any
claimed exemption or reduction, and (B) take such steps as shall not be
materially disadvantageous to it, in the reasonable judgment of such Lender, and
as may be reasonably necessary (including the re-designation of its Lending
Office) to avoid any requirement of applicable Laws of any jurisdiction that the
Borrower or the Administrative Agent make any withholding or deduction for taxes
from amounts payable to such Lender.
 
(f) Treatment of Certain Refunds.  Unless required by applicable Laws, at no
time shall the Administrative Agent have any obligation to file for or otherwise
pursue on behalf of a Lender or the L/C Issuer, or have any obligation to pay to
any Lender or the L/C Issuer, any refund of Taxes withheld or deducted from
funds paid for the account of such Lender or the L/C Issuer, as the case may
be.  If the Administrative Agent, any Lender or the L/C Issuer determines, in
its sole discretion, that it has received a refund of any Taxes or Other Taxes
as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to
the Borrower an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section
with respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses incurred by the Administrative Agent, such Lender or the
L/C Issuer, as the case may be, and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund),
provided that the Borrower, upon the request of the Administrative Agent, such
Lender or the L/C Issuer, agrees to repay the amount paid over to the Borrower
(plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent, such Lender or the L/C
Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is
required to repay such refund to such Governmental Authority.  This subsection
shall not be construed to require the Administrative Agent, any Lender or the
L/C Issuer to make available its tax returns (or any other information relating
to its taxes that it deems confidential) to the Borrower or any other Person.
 
3.02 Illegality. If any Lender determines that any Law has made it unlawful, or
that any Governmental Authority has asserted that it is unlawful, for any Lender
or its applicable Lending Office to make, maintain or fund Loans whose interest
is determined by reference to the Eurodollar Rate, or to determine or charge
interest rates based upon the Eurodollar Rate, or any Governmental Authority has
imposed material restrictions on the authority of such Lender to purchase or
sell, or to take deposits of, Dollars in the London interbank market, then, on
notice thereof by such Lender to the Borrower through the Administrative Agent,
(i) any obligation of
 
 
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such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate
Committed Loans to Eurodollar Rate Committed Loans shall be suspended, and (ii)
if such notice asserts the illegality of such Lender making or maintaining Base
Rate Loans the interest rate on which is determined by reference to the
Eurodollar Rate component of the Base Rate, the interest rate on which Base Rate
Loans of such Lender shall, if necessary to avoid such illegality, be determined
by the Administrative Agent without reference to the Eurodollar Rate component
of the Base Rate, in each case until such Lender notifies the Administrative
Agent and the Borrower that the circumstances giving rise to such determination
no longer exist.  Upon receipt of such notice, (x) the Borrower shall, upon
demand from such Lender (with a copy to the Administrative Agent), prepay or, if
applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans
(the interest rate on which Base Rate Loans of such Lender shall, if necessary
to avoid such illegality, be determined by the Administrative Agent without
reference to the Eurodollar Rate component of the Base Rate), either on the last
day of the Interest Period therefor, if such Lender may lawfully continue to
maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender
may not lawfully continue to maintain such Eurodollar Rate Loans and (y) if such
notice asserts the illegality of such Lender determining or charging interest
rates based upon the Eurodollar Rate, the Administrative Agent shall during the
period of such suspension compute the Base Rate applicable to such Lender
without reference to the Eurodollar Rate component thereof until the
Administrative Agent is advised in writing by such Lender that it is no longer
illegal  for such Lender to determine or charge interest rates based upon the
Eurodollar Rate.  Upon any such prepayment or conversion, the Borrower shall
also pay accrued interest on the amount so prepaid or converted.
 
3.03 Inability to Determine Rates.  If the Required Lenders determine that for
any reason in connection with any request for a Eurodollar Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not being
offered to banks in the London interbank Eurodollar market for the applicable
amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Committed
Loan or in connection with an existing or proposed Base Rate Loan, or (c) the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Committed Loan does not adequately and fairly reflect the cost
to such Lenders of funding such Loan, the Administrative Agent will promptly so
notify the Borrower and each Lender.  Thereafter, (x) the obligation of the
Lenders to make or maintain Eurodollar Rate Loans shall be suspended, and (y) in
the event of a determination described in the preceding sentence with respect to
the Eurodollar Rate component of the Base Rate, the utilization of the
Eurodollar Rate component in determining the Base Rate shall be suspended, in
each case until the Administrative Agent (upon the instruction of the Required
Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Rate Committed Loans or, failing that, will be deemed to have
converted such request into a request for a Committed Borrowing of Base Rate
Loans in the amount specified therein.
 
3.04 Increased Costs; Reserves on Eurodollar Rate Loans.
 
(a) Increased Costs Generally.  If any Change in Law shall:
 
 
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(i) impose, modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with
or for the account of, or credit extended or participated in by, any Lender
(except any reserve requirement contemplated by Section 3.04(e)) or the L/C
Issuer;
 
(ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter
of Credit or any Eurodollar Rate Loan made by it, or change the basis of
taxation of payments to such Lender or the L/C Issuer in respect thereof (except
for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition
of, or any change in the rate of, any Excluded Tax payable by such Lender or the
L/C Issuer); or
 
(iii) impose on any Lender or the L/C Issuer or the London interbank market any
other condition, cost or expense affecting this Agreement or Eurodollar Rate
Loans made by such Lender or any Letter of Credit or participation therein;
 
and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Loan the interest on which is determined by
reference to the Eurodollar Rate (or of maintaining its obligation to make any
such Loan), or to increase the cost to such Lender or the L/C Issuer of
participating in, issuing or maintaining any Letter of Credit (or of maintaining
its obligation to participate in or to issue any Letter of Credit), or to reduce
the amount of any sum received or receivable by such Lender or the L/C Issuer
hereunder (whether of principal, interest or any other amount) then, upon
request of such Lender or the L/C Issuer, the Borrower will pay to such Lender
or the L/C Issuer, as the case may be, such additional amount or amounts as will
compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.
 
(b) Capital Requirements.  If any Lender or the L/C Issuer determines that any
Change in Law affecting such Lender or the L/C Issuer or any Lending Office of
such Lender or such Lender’s or the L/C Issuer’s holding company, if any,
regarding capital requirements has or would have the effect of reducing the rate
of return on such Lender’s or the L/C Issuer’s capital or on the capital of such
Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the L/C Issuer, to a level below that which such Lender or the
L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s
holding company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer or
such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.
 
(c) Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the
L/C Issuer or its holding company, as the case may be, as specified in
subsection (a) or (b) of this Section and delivered to the Borrower shall be
conclusive absent manifest error.  The Borrower shall pay
 
 
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such Lender or the L/C Issuer, as the case may be, the amount shown as due on
any such certificate within 10 days after receipt thereof.
 
(d) Delay in Requests.  Failure or delay on the part of any Lender or the L/C
Issuer to demand compensation pursuant to the foregoing provisions of this
Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s right
to demand such compensation, provided that the Borrower shall not be required to
compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of
this Section for any increased costs incurred or reductions suffered more than
nine months prior to the date that such Lender or the L/C Issuer, as the case
may be, notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the nine-month period
referred to above shall be extended to include the period of retroactive effect
thereof).
 
(e) Reserves on Eurodollar Rate Loans.  The Borrower shall pay to each Lender,
as long as such Lender shall be required to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits
(currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs
of such reserves allocated to such Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be
due and payable on each date on which interest is payable on such Loan, provided
the Borrower shall have received at least 10 days’ prior notice (with a copy to
the Administrative Agent) of such additional interest from such Lender.  If a
Lender fails to give notice 10 days prior to the relevant Interest Payment Date,
such additional interest shall be due and payable 10 days from receipt of such
notice.
 
3.05 Compensation for Losses.  Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate
such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:
 
(a) any continuation, conversion, payment or prepayment of any Loan other than a
Base Rate Loan on a day other than the last day of the Interest Period for such
Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise);
 
(b) any failure by the Borrower (for a reason other than the failure of such
Lender to make a Loan) to prepay, borrow, continue or convert any Loan other
than a Base Rate Loan on the date or in the amount notified by the Borrower; or
 
(c) any assignment of a Eurodollar Rate Loan on a day other than the last day of
the Interest Period therefor as a result of a request by the Borrower pursuant
to Section 11.13;
 
including any loss of anticipated profits and any loss or expense arising from
the liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were
obtained.  The Borrower shall also pay any customary administrative fees charged
by such Lender in connection with the foregoing.
 
For purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each Eurodollar
Rate Committed Loan made
 
 
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by it at the Eurodollar Rate for such Loan by a matching deposit or other
borrowing in the London interbank Eurodollar market for a comparable amount and
for a comparable period, whether or not such Eurodollar Rate Committed Loan was
in fact so funded.
 
3.06 Mitigation Obligations; Replacement of Lenders.
 
(a) Designation of a Different Lending Office.  If any Lender requests
compensation under Section 3.04, or the Borrower is required to pay any
additional amount to any Lender, the L/C Issuer, or any Governmental Authority
for the account of any Lender or the L/C Issuer pursuant to Section 3.01, or if
any Lender gives a notice pursuant to Section 3.02, then such Lender or the L/C
Issuer shall, as applicable, use reasonable efforts to designate a different
Lending Office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the judgment of such Lender or the L/C Issuer, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the
need for the notice pursuant to Section 3.02, as applicable, and (ii) in each
case, would not subject such Lender or the L/C Issuer, as the case may be, to
any unreimbursed cost or expense and would not otherwise be disadvantageous to
such Lender or the L/C Issuer, as the case may be.  The Borrower hereby agrees
to pay all reasonable costs and expenses incurred by any Lender or the L/C
Issuer in connection with any such designation or assignment.
 
(b) Replacement of Lenders.  If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender
or any Governmental Authority for the account of any Lender pursuant to Section
3.01, the Borrower may replace such Lender in accordance with Section 11.13.
 
3.07 Survival.  All of the Borrower’s obligations under this Article III shall
survive termination of the Aggregate Commitments, repayment of all other
Obligations hereunder, and resignation of the Administrative Agent.
 
ARTICLE IV. Borrowing Base
 
4.01 Initial Borrowing Base.  As of the Closing Date, the Borrowing Base
Availability shall be calculated based upon the inclusion of the Initial
Borrowing Base Properties.
 
4.02 Changes in Borrowing Base Availability Calculation.  Each change in the
Borrowing Base Availability shall be effective upon receipt of a new Borrowing
Base Report pursuant to Section 7.02(b); provided that any increase in the
Borrowing Base Availability reflected in such Borrowing Base Report shall not
become effective until (a) the first (1st) Business Day following admission of
any new Borrowing Base Property, if applicable and (b) the fifth (5th) Business
Day following delivery of the new Borrowing Base Report in all other instances,
and provided, further, that any change in the Borrowing Base Availability as a
result of the admission of a Property into the Borrowing Base pursuant to
Section 4.03 shall be effective upon the date that such Borrowing Base Property
is admitted for calculation in the Borrowing Base Availability.
 
 
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4.03 Requests for Admission into Borrowing Base Availability.  Borrower shall
provide Administrative Agent with a written request for a Property to be
admitted as a Borrowing Base Property.  Such request shall be accompanied by the
following information regarding such Property (the “Property Information”)
including the following, in each case reasonably acceptable to Administrative
Agent: (a) a general description of such Property’s location, market, and
amenities; (b) a property description; (c) UCC searches related to the
applicable Property Owner and the owners of the Equity Interests of such new
Property Owner; (d) the documents and information with respect to such Property
listed in Section 4.10; (e) a Borrowing Base Report setting forth in reasonable
detail the calculations required to establish the amount of the Borrowing Base
Availability with such Property included in the calculation of the Borrowing
Base Availability; (f) a Compliance Certificate setting forth in reasonable
detail the calculations required to show that the Loan Parties will be in
compliance with the terms of this Agreement with the inclusion of such Property
included the calculation of the Borrowing Base Availability; and (g) such other
customary information reasonably requested by Administrative Agent as shall be
necessary in order for Administrative Agent to determine whether such Property
is eligible to be a Borrowing Base Property.
 
4.04 Eligibility.  In order for a Property to be eligible for inclusion in the
calculation of the Borrowing Base Availability, such Property must be an
Eligible Property.
 
4.05 Approval of Borrowing Base Properties.  Each Property shall be subject to
Administrative Agent’s reasonable approval for inclusion in the calculation of
the Borrowing Base Availability.  Administrative Agent hereby approves all
Initial Borrowing Base Properties for inclusion in the calculation of the
Borrowing Base Availability.
 
4.06 Liens on Borrowing Base Properties.  A Property shall not be included in
the calculation of the Borrowing Base Availability until: any  Person that owns
Equity Interests in (a) a Property Owner,  or (b) the general partner of each
Property Owner that is a limited partnership, shall have executed and delivered
(or caused to be executed and delivered) a Subsidiary Guaranty, and a Pledge
Agreement covering such Equity Interests; and (b) Borrower shall have delivered
to Administrative Agent all of the Property Information listed in Section 4.10.
 
4.07 Notice of Admission of New Borrowing Base Properties.  If, after the date
of this Agreement, a Property meets all the requirements to be included in the
calculation of the Borrowing Base Availability set forth in this ARTICLE IV,
then Administrative Agent shall notify Borrower and Lenders in writing (a) that
such Property is admitted for inclusion in the calculation of the Borrowing Base
Availability, and (b) of any changes to the Borrowing Base Availability as a
result of the inclusion of such Property in the calculation of the Borrowing
Base Availability.
 
4.08 Release of Borrowing Base Property and Guarantor.  Upon the written request
of Borrower in connection with a sale, refinancing or other permanent
disposition, Administrative Agent shall release a Borrowing Base Property from
the Borrowing Base Availability and any and all Liens in the Equity Interests of
the applicable Property Owner or individually related to such Property Owner
granted pursuant to the Security Documents, including the Mortgage Assignment
with respect to such Borrowing Base Property, and, where
 
 
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appropriate, release such Property Owner from the Subsidiary Guaranty; provided
that (a) if at any time there are less than ten (10) Borrowing Base Properties
(or after giving effect to any release, there would be less than ten (10)
Borrowing Base Properties), the consent of the Required Lenders is obtained, and
(b) no Default exists before and after giving effect thereto (other than
Defaults solely with respect to such Borrowing Base Property that would no
longer exist after giving effect to the release of such Borrowing Base Property
from the Borrowing Base Availability); provided, further, that Administrative
Agent shall have no obligation to release any such Liens or obligations without
a Borrowing Base Report setting forth in reasonable detail the calculations
required to establish the amount of the Borrowing Base Availability without such
Borrowing Base Property and a Compliance Certificate setting forth in reasonable
detail the calculations required to show that the Loan Parties are in compliance
with the terms of this Agreement without the inclusion of such Borrowing Base
Property in the calculation of the Borrowing Base Availability and the various
financial covenants set forth herein, in each case as of the date of such
release and after giving effect to any such release, and all representations and
warranties set forth herein are true and accurate in all material respects at
the time of such release and immediately after giving effect to such release,
except to the extent that any such representation or warranty relates to a
specific earlier date or to the Borrowing Base Property being removed from the
Borrowing Base Availability. In addition, to the extent the Administrative Agent
has received a Pledge Agreement with respect to any Property Owner which does
not own, directly or indirectly, a Borrowing Base Property, provided no Default
is then in existence, the Administrative Agent will release such Pledge
Agreement upon the request of the Borrower.  Upon the written request of
Borrower, Administrative Agent shall release a Subsidiary Guarantor that is not
a Property Owner from the Subsidiary Guaranty if any lender of such Subsidiary
Guarantor requests that the Subsidiary Guarantor be released from the Subsidiary
Guaranty or prohibits the Subsidiary Guarantor from guaranteeing debt of
another; provided that no Event of Default exists before and after giving effect
thereto.
 
4.09 Exclusion Events.  Each of the following events shall be an “Exclusion
Event” with respect to a Borrowing Base Property:
 
(a) such Borrowing Base Property suffers a Material Environmental Event after
the date of this Agreement which the Administrative Agent determines, acting
reasonably and in good faith, materially impairs the value or marketability of
such Borrowing Base Property;
 
(b) Administrative Agent determines that such Borrowing Base Property has
suffered a Material Property Event after the date such Property was included in
the calculation of Borrowing Base Availability (or in the case of an uninsured
Casualty, in respect of such Borrowing Base Property, is reasonably likely to
become a Material Property Event) which the Administrative Agent determines,
acting reasonably and in good faith, materially impairs the value or
marketability of such Borrowing Base Property; and
 
(c) The Improvements have been damaged (ordinary wear and tear excepted) and not
repaired or are the subject of any pending or, to any Loan Party’s knowledge,
threatened Condemnation or adverse zoning proceeding, except as could not
reasonably be expected to cause a Material Property Event.
 
 
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After the occurrence of any Exclusion Event, Administrative Agent, at the
direction of Required Lenders in their sole discretion, shall have the right at
any time and from time to time to notify Borrower (the “Exclusion Notice”) that,
effective ten (10) Business Days after the giving of such notice and for so long
as such circumstance exists, such Property shall no longer be considered a
Borrowing Base Property for purposes of determining the Borrowing Base
Availability.  Borrowing Base Properties which have been subject to an Exclusion
Event may, at Borrower’s request, be released from the Borrowing Base
Availability; provided that such release shall be subject to the conditions for
release set forth in Section 4.08, except that the occurrence of such Exclusion
Event shall not be taken into consideration for the purposes of calculating
subsection (b) of the definition of Borrowing Base NOI or for the purposes of
compliance with Section 8.10(e).
 
If Administrative Agent delivers an Exclusion Notice and such Exclusion Event no
longer exists, then Borrower may give Administrative Agent written notice
thereof (together with reasonably detailed evidence of the cure of such
condition) and such Borrowing Base Property shall, effective with the delivery
by Borrower of the next Borrowing Base Report, be considered a Borrowing Base
Property for purposes of calculating the Borrowing Base Availability as long as
such Borrowing Base Property meets all the requirements to be included in the
Borrowing Base Availability set forth in this ARTICLE IV.  Any Property that is
excluded from the Borrowing Base Availability pursuant to this Section 4.09 may
subsequently be reinstated as a Borrowing Base Property, even if an Exclusion
Event exists, upon such terms and conditions as Required Lenders may approve.
 
4.10 Documentation Required with Respect to Borrowing Base Properties.  Borrower
shall deliver, or shall cause the applicable Property Owner to deliver, each of
the following with respect to each Property to be included in the calculation of
the Borrowing Base Availability:
 
(a) UCC-1 financing statements which shall have been furnished for filing in all
filing offices that Administrative Agent may reasonably require with respect to
any Equity Interest Collateral;
 
(b) Mortgage Assignments which shall have been furnished for filing in all
filing offices that Administrative Agent may reasonably require with respect to
the SunChamp Collateral;
 
(c) a true and correct rent roll for such Property; and
 
(d) all matters required to be delivered under the definition of Eligible
Property.
 
ARTICLE V. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
 
5.01 Conditions of Initial Credit Extension.  The obligation of the L/C Issuer
and each Lender to make its initial Credit Extension hereunder is subject to
satisfaction of the following conditions precedent:

 
 
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(a) The Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the signing Loan
Party, each dated the Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Closing Date) and each in form
and substance reasonably satisfactory to the Administrative Agent and each of
the Lenders:
 
(i) executed counterparts of this Agreement and the Guaranty, sufficient in
number for distribution to the Administrative Agent, each Lender and the
Borrower;
 
(ii) a Note executed by the Borrower in favor of each Lender requesting a Note;
 
(iii) Pledge Agreements with respect to all Equity Interest Collateral;
 
(iv) Mortgage Assignments with respect to the SunChamp Collateral;
 
(v) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party as the
Administrative Agent may require evidencing the identity, authority and capacity
of each Responsible Officer thereof authorized to act as a Responsible Officer
in connection with this Agreement and the other Loan Documents to which such
Loan Party is a party;
 
(vi) such documents and certifications as the Administrative Agent may
reasonably require to evidence that each Loan Party is duly organized or formed,
and that each of the Borrower and Guarantors is validly existing, in good
standing and qualified to engage in business in each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could
not reasonably be expected to have a Material Adverse Effect;
 
(vii) a favorable opinion of Jaffe, Raitt, Heuer and Weiss, P.C., counsel to the
Loan Parties, addressed to the Administrative Agent and each Lender, as to the
matters set forth in Exhibit F and such other matters concerning the Loan
Parties and the Loan Documents as the Required Lenders may reasonably request;
 
(viii) a certificate of a Responsible Officer of each Loan Party either (A)
attaching copies of all consents, licenses and approvals required in connection
with the execution, delivery and performance by such Loan Party and the validity
against such Loan Party of the Loan Documents to which it is a party, and such
consents, licenses and approvals shall be in full force and effect, or (B)
stating that no such consents, licenses or approvals are so required;
 
(ix) a certificate signed by a Responsible Officer of the Borrower certifying
(A) that the conditions specified in Sections 5.02(a) and (b) have been
satisfied, (B) that there has been no event or circumstance since the date of
the Audited Financial Statements that has had or could be reasonably expected to
have, either individually or in the aggregate, a Material Adverse Effect; and
(C) a calculation of the Leverage Ratio as of June 30, 2011;
 
 
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(x) a duly completed Compliance Certificate as of the last day of the fiscal
quarter of the Borrower ended on June 30, 2011, signed by a Responsible Officer
of the Borrower;
 
(xi) evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect;
 
(xii) evidence that the Existing Credit Agreement has been or concurrently with
the Closing Date is being terminated and all Liens securing obligations under
the Existing Credit Agreement have been or concurrently with the Closing Date
are being released; and
 
(xi)           such other assurances, certificates, documents, consents or
opinions as the Administrative Agent, the L/C Issuer, the Swing Line Lender or
the Required Lenders reasonably may require.
 
(b) Any fees required to be paid on or before the Closing Date shall have been
paid.
 
(c) Unless waived by the Administrative Agent, the Borrower shall have paid all
fees, charges and disbursements of counsel to the Administrative Agent (directly
to such counsel if requested by the Administrative Agent) to the extent invoiced
prior to or on the Closing Date, plus such additional amounts of such fees,
charges and disbursements as shall constitute its reasonable estimate of such
fees, charges and disbursements incurred or to be incurred by it through the
closing proceedings (provided that such estimate shall not thereafter preclude a
final settling of accounts between the Borrower and the Administrative Agent).
 
Without limiting the generality of the provisions of the last paragraph of
Section 10.03, for purposes of determining compliance with the conditions
specified in this Section 5.01, each Lender that has signed this Agreement shall
be deemed to have consented to, approved or accepted or to be satisfied with,
each document or other matter required thereunder to be consented to or approved
by or acceptable or satisfactory to a Lender unless the Administrative Agent
shall have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.
 
5.02 Conditions to all Credit Extensions.  The obligation of each Lender to
honor any Request for Credit Extension (other than a Committed Loan Notice
requesting only a conversion of Committed Loans to the other Type, or a
continuation of Eurodollar Rate Committed Loans) is subject to the following
conditions precedent:
 
(a) The representations and warranties of the Borrower and each other Loan Party
contained in Article VI or any other Loan Document, or which are contained in
any document furnished at any time under or in connection herewith or therewith,
shall be true and correct in all material respects on and as of the date of such
Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date, and except that for purposes of this Section
5.02, the representations and warranties contained in subsections (a) and (b) of
Section 6.05 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 7.01.
 
 
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(b) No Default shall exist, or would result from such proposed Credit Extension
or from the application of the proceeds thereof.
 
(c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing
Line Lender shall have received a Request for Credit Extension in accordance
with the requirements hereof.
 
Each Request for Credit Extension (other than a Committed Loan Notice requesting
only a conversion of Committed Loans to the other Type or a continuation of
Eurodollar Rate Committed Loans) submitted by the Borrower shall be deemed to be
a representation and warranty that the conditions specified in Sections
5.02(a) and (b) have been satisfied on and as of the date of the applicable
Credit Extension.
 
ARTICLE VI.  REPRESENTATIONS AND WARRANTIES
 
The Borrower represents and warrants to the Administrative Agent and the Lenders
that:
 
6.01 Existence, Qualification and Power.  Each Loan Party (a) is duly organized
or formed, validly existing and, as applicable, in good standing under the Laws
of the jurisdiction of its incorporation or organization, (b) has all requisite
power and authority and all requisite governmental licenses, authorizations,
consents and approvals to (i) own or lease its assets and carry on its business
and (ii) execute, deliver and perform its obligations under the Loan Documents
to which it is a party, and (c) is duly qualified and is licensed and, as
applicable, in good standing under the Laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification or license; except in each case referred to in
clause (b)(i) or (c), to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect.
 
6.02 Authorization; No Contravention.  The execution, delivery and performance
by each Loan Party of each Loan Document to which such Person is party, have
been duly authorized by all necessary corporate or other organizational action,
and do not and will not (a) contravene the terms of any of such Person’s
Organization Documents; (b) conflict with or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to
be made under (i) any Contractual Obligation to which such Person is a party or
affecting such Person or the properties of such Person or any of its
Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is subject;
or (c) violate any Law.
 
6.03 Governmental Authorization; Other Consents.  No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document.
 
6.04 Binding Effect.  This Agreement has been, and each other Loan Document,
when delivered hereunder, will have been, duly executed and delivered by each
Loan Party that is party thereto.  This Agreement constitutes, and each other
Loan Document when so delivered
 
 
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will constitute, a legal, valid and binding obligation of such Loan Party,
enforceable against each Loan Party that is party thereto in accordance with its
terms.
 
6.05 Financial Statements; No Material Adverse Effect.  (a) The Audited
Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein; (ii) fairly present the financial condition of the Borrower and
its Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein; and
(iii) show all material indebtedness and other liabilities, direct or
contingent, of the Borrower and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness.
 
(b) The unaudited consolidated balance sheets of the Parent and its Subsidiaries
dated June 30, 2011, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for the fiscal quarter ended on
that date (i) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted
therein, and (ii) fairly present the financial condition of the Parent and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby, subject, in the case of clauses (i) and (ii), to the
absence of footnotes and to normal year-end audit adjustments.
 
(c) Since the date of the Audited Financial Statements, there has been no event
or circumstance, either individually or in the aggregate, that has had or could
reasonably be expected to have a Material Adverse Effect. Each of the Parent
and  Borrower is Solvent, and each of the Loan Parties and the other
Subsidiaries considered on a consolidated basis are Solvent.
 
6.06 Litigation. There are no actions, suits, proceedings, claims or disputes
pending or, to the knowledge of the Borrower after due and diligent
investigation, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, by or against the Borrower or any of its
Subsidiaries or against any of their properties or revenues that (a) purport to
affect or pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby, or (b) except as specifically disclosed in
Schedule 6.06, either individually or in the aggregate, if determined adversely,
could reasonably be expected to have a Material Adverse Effect, and there has
been no material adverse change in the status, or financial effect on any Loan
Party or any Subsidiary thereof, of the matters described on Schedule 6.06.
 
6.07 No Default.  Neither any Loan Party nor any Subsidiary thereof is in
default under or with respect to any Contractual Obligation that could, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.  No Default has occurred and is continuing or would result from
the consummation of the transactions contemplated by this Agreement or any other
Loan Document.
 
6.08 Ownership of Property; Liens.  Each of the Borrower and each Subsidiary has
good record and marketable title in fee simple to, or valid leasehold interests
in, all real property
 
 
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necessary or used in the ordinary conduct of its business, except for such
defects in title as could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.  The property of the Borrower and
its Subsidiaries is subject to no Liens, other than Liens permitted by Section
8.01.
 
6.09 Environmental Compliance.  The Borrower and its Subsidiaries conduct in the
ordinary course of business a review of the effect of existing Environmental
Laws and claims alleging potential liability or responsibility for violation of
any Environmental Law on their respective businesses, operations and properties,
and as a result thereof the Borrower has reasonably concluded that, except as
specifically disclosed in Schedule 6.09, such Environmental Laws and claims
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.
 
6.10 Insurance.  The properties of the Loan Parties are insured with insurance
companies not Affiliates of the Borrower, which, to Borrower’s knowledge are
financially sound and reputable, in such amounts, with such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Borrower or the
applicable Loan  Party operates.
 
6.11 Taxes.  The Borrower and its Subsidiaries have filed all Federal, state and
other material tax returns and reports required to be filed, and have paid all
Federal, state and other material taxes, assessments, fees and other
governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except those which are being contested in good
faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP.  There is no proposed tax
assessment against the Borrower or any Subsidiary that would, if made, have a
Material Adverse Effect.
 
6.12 ERISA Compliance. 
 
(a) (a)           Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Federal or state laws, other
than any non-compliance that could not reasonably be expected to have a Material
Adverse Effect.  Each Pension Plan that is intended to be a qualified plan under
Section 401(a) of the Code has received a favorable determination letter from
the Internal Revenue Service to the effect that the form of such Plan is
qualified under Section 401(a) of the Code and the trust related thereto has
been determined by the Internal Revenue Service to be exempt from federal income
tax under Section 501(a) of the Code, or an application for such a letter is
currently being processed by the Internal Revenue Service.  To the best
knowledge of the Borrower, nothing has occurred that would prevent or cause the
loss of such tax-qualified status.
 
(b) There are no pending or, to the best knowledge of the Borrower, threatened
claims, actions or  lawsuits, or action by any Governmental Authority, with
respect to any Plan that  could reasonably be expected to have a Material
Adverse Effect.  There has been no prohibited transaction or violation of the
fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.
 
 
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(c) (i) No ERISA Event has occurred, and neither the Borrower nor any ERISA
Affiliate is aware of any fact, event or circumstance that could reasonably be
expected to constitute or result in an ERISA Event with respect to any Pension
Plan; (ii) the Borrower and each ERISA Affiliate has met all applicable
requirements under the Pension Funding Rules in respect of each Pension Plan,
and no waiver of the minimum funding standards under the Pension Funding Rules
has been applied for or obtained; (iii) as of the most recent valuation date for
any Pension Plan, the funding target attainment percentage (as defined in
Section 430(d)(2) of the Code) is 60% or higher and neither the Borrower nor any
ERISA Affiliate knows of any facts or circumstances that could reasonably be
expected to cause the funding target attainment percentage for any such plan to
drop below 60% as of the most recent valuation date; (iv) neither the Borrower
nor any ERISA Affiliate has incurred any liability to the PBGC other than for
the payment of premiums, and there are no premium payments which have become due
that are unpaid; (v) neither the Borrower nor any ERISA Affiliate has engaged in
a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA;
and (vi) no Pension Plan has been terminated by the plan administrator thereof
nor by the PBGC, and no event or circumstance has occurred or exists that could
reasonably be expected to cause the PBGC to institute proceedings under Title IV
of ERISA to terminate any Pension Plan.
 
6.13 Subsidiaries; Equity Interests.  The Parent and Borrower have no
Subsidiaries other than those specifically disclosed in Schedule 6.13, and all
of the outstanding Equity Interests in such Subsidiaries have been validly
issued, are fully paid and nonassessable and are owned as set forth on Schedule
6.13 free and clear of all Liens (other than Liens in favor of Administrative
Agent), and other than, with respect to Subsidiaries which do not own Equity
Interests in any Property Owners, liens granted in connection with pledges of
Equity Interests owned, directly or indirectly, by Subsidiaries who own Property
subject to Non-Recourse Indebtedness and required by any lender of such
Non-Recourse Indebtedness.  Neither Parent nor Borrower has any direct or
indirect Equity Interests in any other Person other than those specifically
disclosed in Schedule 6.13.
 
6.14 Margin Regulations; Investment Company Act.
 
(a) None of the Loan Parties is engaged nor will engage, principally or as one
of its important activities, in the business of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the FRB), or extending
credit for the purpose of purchasing or carrying margin stock.
 
(b) None of the Loan parties, any Person Controlling Borrower, or any other Loan
Party is or is required to be registered as an “investment company” under the
Investment Company Act of 1940.
 
6.15 Disclosure.  The Loan Parties have disclosed to the Administrative Agent
and the Lenders all agreements, instruments and corporate or other restrictions
to which it or any of their Subsidiaries is subject, and all other matters known
to it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.  No written report, financial statement,
certificate or other information furnished by any Loan Party, or to Borrower’s
knowledge, on behalf of any Loan Party to the Administrative Agent or any Lender
in connection with the transactions contemplated hereby and the negotiation of
this Agreement or
 
 
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delivered hereunder or under any other Loan Document (in each case, as modified
or supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, the Borrower represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.
 
6.16 Compliance with Laws.  Each Loan Party and each Subsidiary thereof is in
compliance in all material respects with the requirements of all Laws and all
orders, writs, injunctions and decrees applicable to it or to its properties,
except in such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings
diligently conducted or (b) the failure to comply therewith, either individually
or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.
 
6.17 Taxpayer Identification Number.  Each Loan Party’s true and correct U.S.
taxpayer identification number is set forth on Schedule 6.17.
 
ARTICLE VII.  AFFIRMATIVE COVENANTS
 
So long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, the Loan Parties shall, and shall (except in the case
of the covenants set forth in Sections 7.01, 7.02, and 7.03) cause each
Subsidiary to:
 
7.01 Financial Statements.  Deliver to the Administrative Agent and each Lender,
in form and detail as previously delivered to the Administrative Agent in
connection with the origination of the Loans  or otherwise satisfactory to the
Administrative Agent and the Required Lenders:
 
(a) as soon as available, but in any event within 90 days after the end of each
fiscal year of the Parent, a consolidated balance sheet of the Parent and its
Subsidiaries as at the end of such fiscal year, and the related consolidated
statements of income or operations, changes in shareholders’ equity, and cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, such consolidated statements to be audited and accompanied
by a report and opinion of an independent certified public accountant of
recognized standing, which report and opinion shall be prepared in accordance
with generally accepted auditing standards and shall not be subject to any
“going concern” or like qualification or exception or any qualification or
exception as to the scope of such audit; and
 
(b) as soon as available, but in any event within 45 days after the end of each
of the first three fiscal quarters of each fiscal year of the Parent, a
consolidated balance sheet of the Parent and its Subsidiaries as at the end of
such fiscal quarter, the related consolidated statements of income or operations
for such fiscal quarter and for the portion of the Parent’s fiscal year then
ended, and the related consolidated statements of changes in shareholders’
equity, and cash flows for the portion of the Parent’s fiscal year then ended,
in each case setting forth in comparative
 
 
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form, as applicable, the figures for the corresponding fiscal quarter of the
previous fiscal year and the corresponding portion of the previous fiscal year,
all in reasonable detail, such consolidated statements to be certified by the
chief executive officer, chief financial officer, treasurer or controller of the
Parent as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of the Parent and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes.
 
As to any information contained in materials furnished pursuant to Section
7.02 (d), the Parent shall not be separately required to furnish such
information under clause (a) or (b) above, but the foregoing shall not be in
derogation of the obligation of the Borrower to furnish the information and
materials described in clauses (a) and (b) above at the times specified therein.
 
7.02 Certificates; Other Information.  Deliver to the Administrative Agent and
each Lender, in form and detail satisfactory to the Administrative Agent and the
Required Lenders:
 
(a) concurrently with the delivery of the financial statements referred to in
Sections 7.01(a) and (b), a duly completed Compliance Certificate signed by the
chief executive officer, chief financial officer, treasurer or controller of the
Borrower (which delivery may, unless the Administrative Agent, or a Lender
requests executed originals, be by electronic communication including fax or
email and shall be deemed to be an original authentic counterpart thereof for
all purposes);
 
(b) concurrently with the delivery of the financial statements referred to in
Sections 7.01(a) and (b), upon the inclusion of a Property in the calculation of
Borrowing Base Availability, and upon the removal of any Property from the
calculation of Borrowing Base Availability, a duly completed Borrowing Base
Report signed by the chief executive officer, chief financial officer, treasurer
or controller of Borrower (which delivery may, unless Administrative Agent or a
Lender requests executed originals, be by electronic communication including fax
or email and shall be deemed to be an original authentic counterpart thereof for
all purposes);
 
(c) promptly after any request by the Administrative Agent or any Lender, copies
of any final management letters or recommendations submitted to the board of
directors (or the audit committee of the board of directors) of the Borrower by
independent accountants in connection with the accounts or books of the Parent
or any Subsidiary, or any audit of any of them;
 
(d) promptly after the same are available, copies of each annual report, proxy
or financial statement or other report or communication sent to the stockholders
of the Parent, and copies of all annual, regular, periodic and special reports
and registration statements which the Parent may file or be required to file
with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934,
and not otherwise required to be delivered to the Administrative Agent pursuant
hereto;
 
(e) as soon as reasonably practicable, but in any event within ninety (90) days
after request by the Administrative Agent or any Lender, the annual budget then
in effect for Borrower, on a consolidated basis prepared by Borrower in the
ordinary course of its business
 
 
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provided, however, that the annual budget for the current year will not be
available until February 28 of such year;
 
(f) promptly after the furnishing thereof, copies of any statement or report
furnished to any holder of debt securities of Parent or Borrower pursuant to the
terms of any indenture, loan or credit or similar agreement and not otherwise
required to be furnished to the Lenders pursuant to Section 7.01 or any other
clause of this Section 7.02;
 
(g) promptly, and in any event within five (5) Business Days after receipt
thereof by Parent or Borrower, copies of each notice or other correspondence
received from the SEC (or comparable agency in any applicable non-U.S.
jurisdiction) concerning any material investigation or other material inquiry by
such agency regarding financial or other operational results of any Loan Party,
other than routine comment letters from the SEC with respect to public filings
unless restricted from doing so by such agency; and
 
(h)           promptly, such additional information regarding the business,
financial or corporate affairs of Parent or Borrower or any Borrowing Base
Property, or compliance with the terms of the Loan Documents, as Administrative
Agent or any Lender may from time to time reasonably request.
 
Documents required to be delivered pursuant to Section 7.01(a) or (b) or Section
7.02(d) (to the extent any such documents are included in materials otherwise
filed with the SEC) may be delivered electronically and if so delivered, shall
be deemed to have been delivered on the date (i) on which the Borrower posts
such documents, or provides a link thereto on the Borrower’s website on the
Internet at the website address listed on Schedule 11.02; or (ii) on which such
documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access
(whether a commercial, third-party website or whether sponsored by the
Administrative Agent); provided that: (i) the Borrower shall deliver paper
copies of such documents to the Administrative Agent or any Lender upon its
request to the Borrower to deliver such paper copies until a written request to
cease delivering paper copies is given by the Administrative Agent or such
Lender and (ii) the Borrower shall notify the Administrative Agent and each
Lender (by telecopier or electronic mail) of the posting of any such documents
and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents.  The Administrative Agent shall have no
obligation to request the delivery of or to maintain paper copies of the
documents referred to above, and in any event shall have no responsibility to
monitor compliance by the Borrower with any such request by a Lender for
delivery, and each Lender shall be solely responsible for requesting delivery to
it or maintaining its copies of such documents.
 
Parent and Borrower hereby acknowledge that (a) Administrative Agent and/or the
Lead Arranger will make available to the Lenders and L/C Issuer materials and/or
information provided by or on behalf of Parent and Borrower hereunder
(collectively, “Borrower Materials”) by posting the Borrower Materials on
IntraLinks or another similar electronic system (the “Platform”) and (b) certain
of the Lenders (each, a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to Parent, Borrower or
their Affiliates, or the respective Equity Interests of any of the foregoing,
and who may be engaged in
 
 
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investment and other market-related activities with respect to such Persons’
Equity Interests.  Parent and Borrower hereby agree that (w) all Borrower
Materials that are to be made available to Public Lenders shall be clearly and
conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (x) by marking
Borrower Materials “PUBLIC,” Parent and Borrower shall be deemed to have
authorized Administrative Agent, Lead Arranger, L/C Issuer and the Lenders to
treat such Borrower Materials as not containing any material non-public
information with respect to Parent and Borrower or their Equity Interests for
purposes of United States Federal and state securities laws (provided that to
the extent such Borrower Materials constitute Information, they shall be treated
as set forth in Section 11.07); (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated
“Public Side Information;” and (z) Administrative Agent and the Lead Arranger
shall be entitled to treat any Borrower Materials that are not marked “PUBLIC”
as being suitable only for posting on a portion of the Platform not designated
“Public Side Information.”
 
7.03 Notices.  Promptly notify the Administrative Agent and each Lender:
 
(a) of the occurrence of any Default;
 
(b) of any matter that has resulted or could reasonably be expected to result in
a Material Adverse Effect, including (i) breach or non-performance of, or any
default under, a Contractual Obligation of the Borrower or any Subsidiary; (ii)
any dispute, litigation, investigation, proceeding or suspension between the
Borrower or any Subsidiary and any Governmental Authority; or (iii) the
commencement of, or any material development in, any litigation or proceeding
affecting the Borrower or any Subsidiary, including pursuant to any applicable
Environmental Laws;
 
(c) of the occurrence of any ERISA Event;
 
(d) of any material change in accounting policies or financial reporting
practices by the Borrower or any Subsidiary;
 
(e) of any actual or threatened in writing condemnation of any portion of any
Borrowing Base Property, and which could reasonably be expected to have a
Material Adverse Effect;
 
(f) of any material permit, license, certificate or approval required with
respect to any Borrowing Base Property lapses or ceases to be in full force and
effect or claim from any person that any Borrowing Base Property, or any use,
activity, operation or maintenance thereof or thereon, is not in compliance with
any Law except to the extent that the same would not result in a Material
Adverse Effect; and
 
(g) of any material change in accounting policies or financial reporting
practices by any Loan Party.
 
Each notice pursuant to this Section 7.03 shall be accompanied by a statement of
a Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower has taken and proposes
to take with respect thereto.  Each
 
 
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notice pursuant to Section 7.03(a) shall describe with particularity any and all
provisions of this Agreement and any other Loan Document that have been
breached.
 
7.04 Payment of Obligations.  Pay and discharge as the same shall become due and
payable, all its obligations and liabilities, including (a) all tax liabilities,
assessments and governmental charges or levies upon it or its properties or
assets, unless the same are being contested in good faith by appropriate
proceedings diligently conducted and adequate reserves in accordance with GAAP
are being maintained by the Parent or such Subsidiary; (b) all lawful claims
which, if unpaid, would by law become a Lien upon its property; and (c) all
Indebtedness, as and when due and payable, but subject to any subordination
provisions contained in any instrument or agreement evidencing such
Indebtedness.
 
7.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full
force and effect its legal existence and good standing under the Laws of the
jurisdiction of its organization except in a transaction permitted by Section
8.03 or 8.04; (b) take all reasonable action to maintain all rights, privileges,
permits, licenses and franchises necessary or desirable in the normal conduct of
its business, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect; and (c) preserve or renew all of its
registered patents, trademarks, trade names and service marks, the
non-preservation of which could reasonably be expected to have a Material
Adverse Effect.
 
7.06 Maintenance of Properties.  (a) Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in
good working order and condition, ordinary wear and tear excepted; and (b) make
all necessary repairs thereto and renewals and replacements thereof except where
the failure to do so could not reasonably be expected to have a Material Adverse
Effect.
 
7.07 Maintenance of Insurance.  Maintain with financially sound and reputable
insurance companies not Affiliates of the Borrower, insurance with respect to
its properties and business against loss or damage of the kinds customarily
insured against by Persons engaged in the same or similar business, of such
types and in such amounts as are customarily carried under similar circumstances
by such other Persons.
 
7.08 Compliance with Laws.  Comply in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted; or (b)
the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect.
 
7.09 Books and Records.  (a)  Maintain proper books of record and account, in
which full, true and correct entries in conformity with GAAP consistently
applied shall be made of all financial transactions and matters involving the
assets and business of the Borrower or such Subsidiary, as the case may be; and
(b) maintain such books of record and account in material conformity with all
applicable requirements of any Governmental Authority having regulatory
jurisdiction over the Borrower or such Subsidiary, as the case may be.
 
 
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7.10 Inspection Rights.  Permit representatives and independent contractors of
the Administrative Agent and each Lender to visit and inspect any of its
properties, to examine its corporate, financial and operating records, and make
copies thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its designated officers, and independent public accountants, all
at the expense of the Borrower and at such reasonable times during normal
business hours and as often as may be reasonably desired, all upon at least 48
hours advance notice to the Borrower; provided, however, that when an Event of
Default exists the Administrative Agent or any Lender (or any of their
respective representatives or independent contractors) may do any of the
foregoing at the expense of the Borrower at any time during normal business
hours and without advance notice.
 
7.11 Use of Proceeds.  Use the proceeds of the Credit Extensions for general
corporate purposes not in contravention of any Law or of any Loan Document.
 
7.12 Borrowing Base Properties.
 
Except where the failure to comply with any of the following would not have a
Material Adverse Effect, each of Parent and Borrower shall, and shall use
commercially reasonable efforts to cause each other Loan Party, to:
 
(a) Pay all real estate and personal property taxes, assessments, water rates or
sewer rents, maintenance charges, impositions, and any other charges, including
vault charges and license fees for the use of vaults, chutes and similar areas
adjoining any Borrowing Base Property, now or hereafter levied or assessed or
imposed against any Borrowing Base Property or any part thereof (except those
which are being contested in good faith by appropriate proceedings diligently
conducted).
 
(b) Promptly pay (or cause to be paid) before delinquent all bills and costs for
labor, materials, and specifically fabricated materials incurred in connection
with any Borrowing Base Property (except those which are being contested in good
faith by appropriate proceedings diligently conducted), and in any event never
permit to be created or exist in respect of any Borrowing Base Property or any
part thereof any other or additional Lien or security interest other than Liens
permitted by Section 8.01.
 
(c) Operate the Borrowing Base Properties in a good and workmanlike manner and
in all material respects in accordance with all Laws in accordance with such
Loan Party’s prudent business judgment.
 
(d) Cause each other Loan Party to, to the extent owned and controlled by a Loan
Party, preserve, protect, renew, extend and retain all material rights and
privileges granted for or applicable to each Borrowing Base Property.
 
Notwithstanding the foregoing, to the extent that any of the foregoing causes a
Material Property Event with respect of any Borrowing Base Property, such event
shall be an Exclusion Event pursuant to Section 4.09.
 
7.13 Subsidiary Guarantor Organizational Documents.  Each of Parent and Borrower
shall, and shall cause each other Pledgor to, at its expense, maintain the
Organization
 
 
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Documents of each Subsidiary Guarantor in full force and effect, without any
cancellation, termination, amendment, supplement, or other modification of such
Organization Documents, except as explicitly required by their terms (as in
effect on the date hereof), except for amendments, supplements, or other
modifications that do not adversely affect the interests of the Lenders under
the applicable Pledge Agreement in any material respect, and except for
Organization Documents in respect of Equity Interests of partnerships or limited
liability companies that have been released from the applicable Pledgor’s Pledge
Agreement.
 
7.14 Additional Guarantors.  Notify the Administrative Agent at the time that
any Person becomes a Significant Subsidiary (defined below), and promptly
thereafter (and in any event within 30 days), cause such Person, to (a) become a
Guarantor by executing and delivering to the Administrative Agent a counterpart
of the Subsidiary Guaranty or such other document as the Administrative Agent
shall deem appropriate for such purpose, and (b) deliver to the Administrative
Agent documents of the types referred to in clauses (v) and (vi) of Section
5.01(a) and, at Administrative Agent’s request, favorable opinions of counsel to
such Person (which shall cover, among other things, the legality, validity,
binding effect and enforceability of the documentation referred to in clause
(a)), all in form, content and scope reasonably satisfactory to the
Administrative Agent.  For purposes of this Section 7.14, “Significant
Subsidiary” means any Subsidiary that: (x) owns a manufactured home and/or
recreational vehicle community, or (y) has an asset value similar to that of Sun
Home Services, Inc.
 
7.15 Environmental Matters.  Comply and cause each other Loan Party and each
other Subsidiary to, comply with all Environmental Laws the failure with which
to comply could reasonably be expected to have a Material Adverse Effect.  The
Loan Parties shall use, and shall cause each other Subsidiary to use,
commercially reasonable efforts to cause all other Persons occupying, using or
present on the Properties to comply, with all Environmental Laws in all material
respects.  The Loan Parties shall, and shall cause each other Subsidiary to,
promptly take all actions and pay or arrange to pay all costs necessary for it
and for the Properties to comply in all material respects with all Environmental
Laws and all Governmental Approvals, including actions to remove and dispose of
all Hazardous Materials and to clean up the Properties, each as required under
Environmental Laws.  The Loan Parties shall, and shall cause each other
Subsidiary to, promptly take all actions necessary to prevent the imposition of
any Liens on any of their respective properties arising out of or related to any
Environmental Laws.  Nothing in this Section shall impose any obligation or
liability whatsoever on the Administrative Agent or any Lender.
 
7.16 REIT Status; New York Stock Exchange Listing.  The Parent shall at all
times (i) maintain its status as a REIT, so long as REITs are recognized under
the Code, and (ii) remain a publicly traded company listed on the New York Stock
Exchange or another national stock exchange located in the United States.
 
ARTICLE VIII. NEGATIVE COVENANTS
 
So long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, the Loan Parties shall not, nor shall it permit any
Subsidiary to, directly or indirectly:
 
 
 
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8.01 Liens.  Create, incur, assume or suffer to exist any Lien upon any
Collateral other than, with respect to the Borrowing Base Properties, the
following:
 
(a) Liens pursuant to any Loan Document;
 
(b) Liens existing on the date hereof and listed on Schedule 8.01;
 
(c) Liens for taxes not yet delinquent or which are being contested in good
faith and by appropriate proceedings diligently conducted, if adequate reserves
with respect thereto are maintained on the books of the applicable Person in
accordance with GAAP;
 
(d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business which are not overdue for
a period of more than 30 days or which are being contested in good faith and by
appropriate proceedings diligently conducted, if adequate reserves with respect
thereto are maintained on the books of the applicable Person;
 
(e) pledges or deposits in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other social security
legislation, other than any Lien imposed by ERISA;
 
(f) deposits to secure the performance of bids, trade contracts and leases
(other than Indebtedness), statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;
 
(g) easements, rights-of-way, restrictions and other similar encumbrances
affecting real property, including easements to a governmental authority or
utility company which, in the aggregate, are not substantial in amount, and
which do not in any case materially detract from the value of the property
subject thereto or materially interfere with the ordinary conduct of the
business of the applicable Person; and
 
(h) Liens securing judgments for the payment of money not constituting an Event
of Default under Section 9.01(h).
 
8.02 Investments.  Make any Investments, except:
 
(a) Investments in the form of cash or cash equivalents;
 
(b) Investments existing on the date hereof and set forth on Schedule 6.13;
 
(c) advances to officers, directors and employees of the Borrower and
Subsidiaries for travel, entertainment, relocation and analogous ordinary
business purposes;
 
(d) Investments of the Guarantor and the Borrower in the form of Equity
Interests and investments of the Borrower in any wholly-owned Subsidiary, and
Investments of Borrower directly in, or of any wholly-owned Subsidiary in
another wholly-owned Subsidiary which owns, real property assets which are
located within the
 
 
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        United States, provided in each case the Investments held by Borrower or
Subsidiary are in accordance with the provisions of this Section 8.02 other than
this Section 8.02(d);
 
(e) Investments consisting of extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the
ordinary course of business;
 
(f) Investments in unimproved land holdings not to at any time exceed ten
percent (10%) of Total Asset Value;
 
(g) Investments in mortgages, mezzanine loans and notes receivable not exceeding
5% of Total Asset Value, provided, however, that loans and notes receivables
from affiliates, and collateralized receivables shall not be subject to such 5%
limitation (provided, however, collateralized receivables shall be subject to
such limitations set forth in subsection (k) below);
 
(h) Investments in Construction in Progress not to at any time exceed ten
percent (10%) of Total Asset Value;
 
(i) Investments in non-wholly owned Subsidiaries and Unconsolidated Affiliates
not to at any time exceed ten percent (10%) of Total Asset Value;
 
(j) Investments in Real Property assets that are not manufactured home
communities or recreation vehicle communities not to at any time exceed ten
percent (10%) of Total Asset Value;
 
(k) Investments in collateralized receivables not to at any time exceed fifteen
percent (15%) of Total Asset Value;
 
(l) Investments by the Parent for the redemption, conversion, exchange,
retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any Equity Interests of Parent or Borrower now or
hereafter outstanding to the extent permitted under Section 8.05 below;
 
(m) Loans to employees, up to $500,000 in the aggregate;
 
(n) Investments in manufactured homes and recreational vehicles, including but
not limited to the acquisition, sale, leasing and financing thereof; and
 
(o) Investments in other businesses or assets incidental to the operation of
manufactured home communities or recreational vehicle communities, or related to
the ownership, acquisition, operation, leasing or management of manufactured
home communities or recreational vehicle communities..
 
Determinations of whether an Investment in an asset is permitted will be made
after giving effect to the subject Investment.  Investments pursuant to clauses
(f) through (j) above in the aggregate will not exceed 20% of Total Asset Value.
 
 
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8.03 Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into
another Person, or Dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to or in favor of any Person, except that, so long as no
Event of Default has occurred and is continuing or would result therefrom:
 
(a) any Loan Party (other Parent or Borrower) may merge with (i) Parent or
Borrower, provided that Parent or Borrower, as applicable, shall be the
continuing or surviving Person, or (ii) any other Loan Party, or (iii) any other
Person provided that, if it owns a Borrowing Base Property and is not the
surviving entity, then Borrower has complied with Section 4.08 to remove such
Borrowing Base Property from the calculation of Borrowing Base Availability;
 
(b) any Loan Party (other than Parent or Borrower) may Dispose of all or
substantially all of its assets (upon voluntary liquidation or otherwise) to
another Loan Party;
 
(c) any Loan Party may Dispose of a Property owned by such Loan Party in the
ordinary course of business and for fair value; provided that if such Property
is a Borrowing Base Property, then Borrower shall have complied with Section
4.08; and
 
(d) Parent or Borrower may merge or consolidate with another Person so long as
either Parent or Borrower, as the case may be, is the surviving entity, shall
remain in pro forma compliance with the covenants set forth in Section 8.14
below after giving effect to such transaction, and Borrower obtains the prior
written consent in writing of the Required Lenders in their sole discretion.
 
Nothing in this Section shall be deemed to prohibit the sale or leasing of
Property or portions of Property in the ordinary course of business.
 
8.04 Dispositions.  Make any Disposition or enter into any agreement to make any
Disposition, except:
 
(a) Dispositions of obsolete or worn out property, whether now owned or
hereafter acquired, in the ordinary course of business;
 
(b) Dispositions of inventory, manufactured homes and recreational vehicles in
the ordinary course of business;
 
(c) Any other Dispositions of Properties or SunChamp Properties or other assets
in an arm’s length transaction; provided that (i) if such property is a
Borrowing Base Property, then Borrower shall have complied with Section 4.08 and
(ii) the Borrower and the Parent will remain in pro forma compliance with the
covenants set forth in Section 8.14 after giving effect to such transaction.
 
Nothing in this Section shall be deemed to prohibit the sale or leasing of
Property or SunChamp Property or portions of Property or SunChamp Property in
the ordinary course of business..
 
 
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8.05 Restricted Payments.  Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
except that:
 
(a) so long as no Default shall have occurred and be continuing at the time of
any action described below or would result therefrom, each Subsidiary may make
Restricted Payments to Borrower, and any other Person that owns an Equity
Interest in Borrower or any such Subsidiary, ratably according to their
respective holdings of the type of Equity Interest in respect of which such
Restricted Payment is being made;
 
(b) so long as no Default shall have occurred and be continuing at the time of
any action described below or would result therefrom, any Loan Party may declare
and make dividend payments or other distributions payable with respect to the
Equity Interests of such Loan Party solely in the common Equity Interests of
such Loan Party including (i) “cashless exercises” of options granted under any
share option plan adopted by Parent, (ii) distributions of rights or equity
securities under any rights plan adopted by Borrower or Parent, and (iii)
distributions (or effect stock splits or reverse stock splits) with respect to
its Equity Interests payable solely in additional shares of its Equity
Interests;
 
(c) so long as no Default shall have occurred and be continuing at the time of
any action described below or would result therefrom, Borrower, Parent and each
Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by
it; and
 
(d) Borrower may make any Permitted Distributions, and Parent may distribute all
proceeds received from such Permitted Distribution to any Person that owns an
Equity Interest in Parent.
 
8.06 Change in Nature of Business.  Engage in any material line of business
substantially different from those lines of business conducted by the Borrower
and its Subsidiaries on the date hereof.
 
8.07 Transactions with Affiliates.  Enter into any transaction of any kind with
any Affiliate that is not a Subsidiary of a Loan Party, whether or not in the
ordinary course of business, other than on fair and reasonable terms
substantially as favorable to such Loan Party as would be obtainable by such
Loan Party at the time in a comparable arm’s length transaction with a Person
other than an Affiliate.
 
8.08 Burdensome Agreements.  Enter into any Contractual Obligation (other than
this Agreement or any other Loan Document) that (a) limits the ability (i) of
any Subsidiary to make Restricted Payments to the Borrower or any Guarantor or
to otherwise transfer property to the Borrower or any Guarantor, (ii) of any
Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of the
Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on
any Borrowing Base Properties.
 
8.09 Use of Proceeds.  Use the proceeds of any Credit Extension, whether
directly or indirectly, and whether immediately, incidentally or ultimately, to
purchase or carry margin stock (within the meaning of Regulation U of the FRB)
or to extend credit to others for the
 
 
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purpose of purchasing or carrying margin stock or to refund indebtedness
originally incurred for such purpose.
 
8.10 Borrowing Base Properties. Directly or indirectly:
 
(a) Use or occupy or conduct any activity on, or knowingly permit the use or
occupancy of or the conduct of any activity on any Borrowing Base Properties by
any tenant, in any manner which violates any Law or which constitutes a public
or private nuisance in any manner which would have a Material Adverse Effect or
which makes void, voidable, or cancelable any insurance then in force with
respect thereto or makes the maintenance of insurance in accordance with
Section 7.07 commercially unreasonable (including by way of increased premium);
 
(b) Without the prior written consent of Administrative Agent (which consent
shall not be unreasonably withheld or delayed), initiate or permit any zoning
reclassification of any Borrowing Base Property or use or knowingly permit the
use of any Borrowing Base Property in such a manner which would result in such
use becoming a nonconforming use under applicable zoning ordinances or other
Laws to the extent that any of the foregoing would result in a Material Property
Event;
 
(c) Without the prior written consent of Administrative Agent (which consent
shall not be unreasonably withheld or delayed), (i) impose any restrictive
covenant, or encumbrance upon any Borrowing Base Property, (ii) execute or file
any subdivision plat or condominium declaration affecting any Borrowing Base
Property, or (iii) consent to the annexation of any Borrowing Base Property to
any municipality to the extent that any of the foregoing could reasonably be
expected to result in a Material Property Event;
 
(d) Do any act, or suffer to be done any act by any Loan Party or any of its
Affiliates, which would reasonably be expected to materially decrease the value
of any Borrowing Base Property (including by way of negligent act); or
 
(e) Without the prior written consent of Required Lenders allow there to be less
than ten (10) Borrowing Base Properties.
 
8.11 RESERVED.
 
8.12 RESERVED.
 
8.13 Negative Pledge; Indebtedness.  Not permit:
 
(a) Secured Recourse Indebtedness, other than the Credit Extensions, in excess
of Three Hundred Million Dollars ($300,000,000) (solely to the extent of the
recourse portion thereof), subject to a Two Hundred Million Dollars
($200,000,000) sublimit (solely to the extent of the recourse portion thereof)
for collateralized receivables.
 
 
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(b) The incurrence of any Indebtedness (other than the Credit Extensions)
secured by any Lien on any Borrowing Base Property, Equity Interest Collateral
or SunChamp Collateral.
 
8.14 Financial Covenants.  Not, directly or indirectly, permit:
 
(a) Maximum Leverage Ratio.  Total Indebtedness to exceed seventy percent (70%)
of Total Asset Value as of the last day of each fiscal quarter.
 
(b) Minimum Tangible Net Worth.  Tangible Net Worth at any time to be less than
the sum of (i) eighty percent (80%) of the Tangible Net Worth on the Closing
Date plus (ii) an amount equal to seventy-five percent (75%) of net equity
proceeds received by the Parent after the Closing Date (other than proceeds
received in connection with any dividend reinvestment program).
 
(c) Minimum Fixed Charge Coverage Ratio.  The ratio of Adjusted EBITDA to Fixed
Charges at the end of any quarter to be less than 1.45 to 1.0 as of the last day
of each fiscal quarter.
 
(d) Maximum Variable Rate Indebtedness.  More than thirty percent (30%) of Total
Asset Value (with respect to which only the principal outstanding on the date of
calculation shall be included) to accrue interest at a variable rate (exclusive
of any variable rate interest obligation that is the subject of a Swap
Contract).
 
(e) Restricted Payments.  The declaration or making, directly or indirectly, of
any Restricted Payment, except as permitted under Section 8.05.
 
ARTICLE IX.  EVENTS OF DEFAULT AND REMEDIES
 
9.01 Events of Default.  Any of the following shall constitute an Event of
Default:
 
(a) Non-Payment.  The Borrower or any other Loan Party fails to pay (i) when and
as required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within three days after the same becomes due, any interest
on any Loan or on any L/C Obligation, or any fee due hereunder, or (iii) within
five days after the same becomes due, any other amount payable hereunder or
under any other Loan Document; or
 
(b) Specific Covenants.  The Borrower fails to perform or observe any term,
covenant or agreement contained in any of Section 7.01, 7.02, 7.03, 7.05, 7.10,
7.11 7.14 or 7.16 or Article VIII, or
 
(c) Other Defaults.  Any Loan Party fails to perform or observe any other
covenant or agreement (not specified in subsection (a) or (b) above) contained
in any Loan Document on its part to be performed or observed and such failure
continues for 30 days, or such longer period of time as is reasonably necessary
to cure such failure, provided that the Loan Party has commenced and is
diligently prosecuting the cure of such failure and cures it within an
additional 30 day period; or
 
 
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(d) Representations and Warranties.  Any representation, warranty, certification
or statement of fact made or deemed made by or on behalf of the Borrower or any
other Loan Party herein, in any other Loan Document, or in any document
delivered in connection herewith or therewith shall be incorrect or misleading
in any material respect when made or deemed made; or
 
(e) Cross-Default.  (i) The Borrower, the Parent or any Subsidiary (A) fails to
make any payment prior to expiration of applicable grace or cure periods
(whether by scheduled maturity, required prepayment, acceleration, demand, or
otherwise) in respect of any (a) Recourse Indebtedness (other than Indebtedness
hereunder and Indebtedness under Swap Contracts) having an aggregate principal
amount (including undrawn committed or available amounts and including amounts
owing to all creditors under any combined or syndicated credit arrangement) of
more than $25,000,000 provided, however, any default by a debtor under any
collateralized receivable shall not be deemed a default of Recourse
Indebtedness, or (b) Non-Recourse Indebtedness having an aggregate principal
amount (including undrawn committed or available amounts and including amounts
owing to all creditors under any combined or syndicated credit arrangement) of
more than $100,000,000, provided that the failure to pay any such Indebtedness
shall not constitute an Event of Default so long as the Borrower or its
Subsidiaries is diligently contesting the payment of the same by appropriate
legal proceedings and the Borrower or its Subsidiaries have set aside, in a
manner and amount reasonably satisfactory to Administrative Agent, for the
purpose of covering an adverse outcome, a sufficient reserve to repay accrued
interest thereon and costs of enforcement, or (B) fails to observe or perform
any other agreement or condition relating to any such Indebtedness or Guarantee
or contained in any instrument or agreement evidencing, securing or relating
thereto beyond any applicable cure period, or any other event occurs, the effect
of which default or other event is to cause, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a
trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid,
defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect
thereof to be demanded, provided that with respect to Non-Recourse Indebtedness
the failure to observe or perform any other agreement or condition shall not
constitute an Event of Default so long as the Borrower or its Subsidiaries is
diligently contesting the same by appropriate legal proceedings and the Borrower
or its Subsidiaries have set aside, in a manner and amount reasonably
satisfactory to Administrative Agent, for the purpose of covering an adverse
outcome, a sufficient reserve to repay accrued interest thereon and costs of
enforcement; or (ii) there occurs under any Swap Contract an Early Termination
Date (as defined in such Swap Contract) resulting from (A) any event of default
and expiration of notice and grace periods under such Swap Contract as to which
the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap
Contract) or (B) any Termination Event (as so defined) under such Swap Contract
as to which the Borrower or any Subsidiary is an Affected Party (as so defined)
and, in either event, the Swap Termination Value owed by the Borrower or such
Subsidiary as a result thereof is greater than $15,000,000; or
 
(f) Insolvency Proceedings, Etc.  Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an
 
 
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assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer for it or for all or any material part of its
property; or any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or consent
of such Person and the appointment continues undischarged or unstayed for 60
calendar days; or any proceeding under any Debtor Relief Law relating to any
such Person or to all or any material part of its property is instituted without
the consent of such Person and continues undismissed or unstayed for 60 calendar
days, or an order for relief is entered in any such proceeding; or
 
(g) Inability to Pay Debts; Attachment.  (i) The Borrower or any Subsidiary
becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due, or (ii) any writ or warrant of attachment or execution
or similar process is issued or levied against all or any material part of the
property of any such Person and is not released, vacated or fully bonded within
30 days after its issue or levy; or
 
(h) Judgments.  There is entered against the Borrower or any Subsidiary (i) one
or more final judgments or orders for the payment of money in an aggregate
amount (as to all such judgments or orders) exceeding $5,000,000 (to the extent
not covered by independent third-party insurance as to which the insurer does
not dispute coverage), or (ii) any one or more non-monetary final judgments that
have, or could reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect and, in either case, (A) enforcement proceedings are
commenced by any creditor upon such judgment or order, or (B) there is a period
of 30 consecutive days during which a stay of enforcement of such judgment, by
reason of a pending appeal or otherwise, is not in effect; or
 
(i) RESERVED; or
 
(j) Invalidity of Loan Documents.  Any provision of any material Loan Document,
at any time after its execution and delivery and for any reason other than as
expressly permitted hereunder or thereunder or satisfaction in full of all the
Obligations, ceases to be in full force and effect; or any Loan Party or any
other Person contests in any manner the validity or enforceability of any
provision of any Loan Document; or any Loan Party denies that it has any or
further liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any provision of any Loan Document; or
 
(k) Change of Control.  There occurs any Change of Control.
 
(l) REIT Status of Parent.  Parent ceases to be treated as a REIT so long as
REITs are recognized under the Code.
 
9.02 Remedies Upon Event of Default.  If any Event of Default occurs and is
continuing, the Administrative Agent shall, at the request of, or may, with the
consent of, the Required Lenders, take any or all of the following actions:
 
(a) declare the commitment of each Lender to make Loans and any obligation of
the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;
 
 
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(b) declare the unpaid principal amount of all outstanding Loans, all interest
accrued and unpaid thereon, and all other amounts owing or payable hereunder or
under any other Loan Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by the Borrower;
 
(c) require that the Borrower Cash Collateralize the L/C Obligations (in an
amount equal to the then Outstanding Amount thereof); and
 
(d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and
remedies available to it, the Lenders and the L/C Issuer under the Loan
Documents;
 
provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans and any obligation of
the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the
unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as
aforesaid shall automatically become effective, in each case without further act
of the Administrative Agent or any Lender.
 
9.03 Application of Funds.  After the exercise of remedies provided for in
Section 9.02 (or after the Loans have automatically become immediately due and
payable and the L/C Obligations have automatically been required to be Cash
Collateralized as set forth in the proviso to Section 9.02), any amounts
received on account of the Obligations shall, subject to the provisions of
Sections 2.17 and 2.18, be applied by the Administrative Agent in the following
order:
 
First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and
disbursements of counsel to the Administrative Agent and amounts payable under
Article III) payable to the Administrative Agent in its capacity as such;
 
Second, to payment of that portion of the Obligations constituting fees,
indemnities and other amounts (other than principal, interest and Letter of
Credit Fees) payable to the Lenders and the L/C Issuer (including fees, charges
and disbursements of counsel to the respective Lenders and the L/C Issuer and
amounts payable under Article III), ratably among them in proportion to the
respective amounts described in this clause Second payable to them;
 
Third, to payment of that portion of the Obligations constituting accrued and
unpaid Letter of Credit Fees and interest on the Loans, L/C Borrowings and other
Obligations, ratably among the Lenders and the L/C Issuer in proportion to the
respective amounts described in this clause Third payable to them;
 
Fourth, to payment of that portion of the Obligations constituting unpaid
principal of the Loans and L/C Borrowings, ratably among the Lenders and the L/C
Issuer in proportion to the respective amounts described in this clause Fourth
held by them;
 
 
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Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn
amount of Letters of Credit to the extent not otherwise Cash Collateralized by
the Borrower pursuant to Sections 2.04 and 2.17; and
 
Last, the balance, if any, after all of the Obligations have been indefeasibly
paid in full, to the Borrower or as otherwise required by Law.
 
Subject to Sections 2.04(c) and 2.17, amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above
shall be applied to satisfy drawings under such Letters of Credit as they
occur.  If any amount remains on deposit as Cash Collateral after all Letters of
Credit have either been fully drawn or expired, such remaining amount shall be
applied to the other Obligations, if any, in the order set forth above.
 
ARTICLE X. ADMINISTRATIVE AGENT
 
10.01 Appointment and Authority.  Each of the Lenders and the L/C Issuer hereby
irrevocably appoints Bank of America to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, and to take any and all other actions as permitted pursuant to the term
of this Agreement, together with such actions and powers as are reasonably
incidental thereto.  The provisions of this Article are solely for the benefit
of the Administrative Agent, the Lenders and the L/C Issuer, and neither the
Borrower nor any other Loan Party shall have rights as a third party beneficiary
of any of such provisions.
 
10.02 Rights as a Lender.  The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual capacity.  Such
Person and its Affiliates may accept deposits from, lend money to, act as the
financial advisor or in any other advisory capacity for and generally engage in
any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders.
 
10.03 Exculpatory Provisions.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the generality of the foregoing, the
Administrative Agent:
 
(a)           shall not be subject to any fiduciary or other implied duties,
regardless of whether a Default has occurred and is continuing;
 
(b)           shall not have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents that the
Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be
expressly provided for herein or in the other Loan
 
 
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        Documents), provided that the Administrative Agent shall not be required
to take any action that, in its opinion or the opinion of its counsel, may
expose the Administrative Agent to liability or that is contrary to any Loan
Document or applicable law; and
 
(c)           shall not, except as expressly set forth herein and in the other
Loan Documents, have any duty to disclose, and shall not be liable for the
failure to disclose, any information relating to the Parent or any of its
Affiliates that is communicated to or obtained by the Person serving as the
Administrative Agent or any of its Affiliates in any capacity.
 
The Administrative Agent shall not be liable for any action taken or not taken
by it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 11.01 and 9.02) or (ii) in the absence of
its own gross negligence or willful misconduct.  The Administrative Agent shall
be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by the Borrower, a
Lender or the L/C Issuer.
 
The Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document or (v) the satisfaction
of any condition set forth in Article V or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.
 
10.04 Reliance by Administrative Agent.  The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any
notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting
or other distribution) believed by it to be genuine and to have been signed,
sent or otherwise authenticated by the proper Person.  The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to have been made by the proper Person, and shall not incur any liability
for relying thereon.  In determining compliance with any condition hereunder to
the making of a Loan, or the issuance of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the
Administrative Agent may presume that such condition is satisfactory to such
Lender or the L/C Issuer unless the Administrative Agent shall have received
notice to the contrary from such Lender or the L/C Issuer prior to the making of
such Loan or the issuance of such Letter of Credit.  The Administrative Agent
may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.
 
 
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10.05 Delegation of Duties.  The Administrative Agent may perform any and all of
its duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub-agents appointed by the
Administrative Agent.  The Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties.  The exculpatory provisions of this
Article shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.
 
10.06 Resignation of Administrative Agent.  The Administrative Agent may at any
time give notice of its resignation to the Lenders, the L/C Issuer and the
Borrower.  Upon receipt of any such notice of resignation, the Required Lenders
shall have the right to appoint a successor, which shall be a bank with an
office in the United States, or an Affiliate of any such bank with an office in
the United States, and, so long as no Event of Default has occurred and is
continuing, such successor to be subject to the approval of the Borrower (each
such consent not to be unreasonably withheld or delayed).  If no such successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may on behalf
of the Lenders and the L/C Issuer, appoint a successor Administrative Agent
meeting the qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents and (2) all payments, communications and determinations
provided to be made by, to or through the Administrative Agent shall instead be
made by or to each Lender and the L/C Issuer directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above
in this Section.  Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring (or
retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other
Loan Documents  (if not already discharged therefrom as provided above in this
Section).  The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor.  After the retiring Administrative
Agent’s resignation hereunder and under the other Loan Documents, the provisions
of this Article and Section 11.04 shall continue in effect for the benefit of
such retiring Administrative Agent, its sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them
while the retiring Administrative Agent was acting as Administrative Agent.
 
(b)           Any resignation by Bank of America as Administrative Agent
pursuant to this Section shall also constitute its resignation as L/C Issuer and
Swing Line Lender.  Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring L/C
Issuer and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line Lender
shall be discharged from all of their respective duties and obligations
hereunder or under the other Loan Documents, and (c) the successor L/C Issuer
shall issue letters of credit in \
 
 
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substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to the retiring L/C Issuer to
effectively assume the obligations of the retiring L/C Issuer with respect to
such Letters of Credit.
 
10.07 Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and
the L/C Issuer acknowledges that it has, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each Lender and
the L/C Issuer also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any other Loan Document or
any related agreement or any document furnished hereunder or thereunder.
 
10.08 No Other Duties, Etc.  Anything herein to the contrary notwithstanding,
none of the Bookrunners, Arrangers or Syndication Agent listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement or
any of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent, a Lender or the L/C Issuer hereunder.
 
10.09 Administrative Agent May File Proofs of Claim.  In case of the pendency of
any proceeding under any Debtor Relief Law or any other judicial proceeding
relative to any Loan Party, the Administrative Agent (irrespective of whether
the principal of any Loan or L/C Obligation shall then be due and payable as
herein expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Borrower) shall be
entitled and empowered, by intervention in such proceeding or otherwise
 
(a)           to file and prove a claim for the whole amount of the principal
and interest owing and unpaid in respect of the Loans, L/C Obligations and all
other Obligations that are owing and unpaid and to file such other documents as
may be necessary or advisable in order to have the claims of the Lenders, the
L/C Issuer and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the L/C
Issuer and the Administrative Agent and their respective agents and counsel and
all other amounts due the Lenders, the L/C Issuer and the Administrative Agent
under Sections 2.04(i) and (j), 2.10 and 11.04) allowed in such judicial
proceeding; and
 
(b)           to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;
 
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender and the L/C Issuer to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements
 
 
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and advances of the Administrative Agent and its agents and counsel, and any
other amounts due the Administrative Agent under Sections 2.10 and 11.04.
 
Nothing contained herein shall be deemed to authorize the Administrative Agent
to authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or the L/C Issuer to
authorize the Administrative Agent to vote in respect of the claim of any Lender
or the L/C Issuer in any such proceeding.
 
10.10 Collateral and Guaranty Matters.  The Lenders and the L/C Issuer
irrevocably authorize the Administrative Agent, at its option and in its
discretion,
 
(a)           to release any Lien on any property granted to or held by the
Administrative Agent under any Loan Document (i) upon termination of the
Aggregate Commitments and payment in full of all Obligations (other than
contingent indemnification obligations) and the expiration or termination of all
Letters of Credit (other than Letters of Credit as to which other arrangements
satisfactory to the Administrative Agent and the L/C Issuer shall have been
made), (ii) that is sold or to be sold as part of or in connection with any sale
permitted hereunder or under any other Loan Document, or (iii) subject to
Section 11.01, if approved, authorized or ratified in writing by the Required
Lenders;
 
(b)           to subordinate any Lien on any property granted to or held by the
Administrative Agent under any Loan Document to the holder of any Lien on such
property that is permitted by Section 8.01;
 
(c)           to release any Guarantor from its obligations under the Guaranty
if such Person ceases to be a Subsidiary as a result of a transaction permitted
hereunder or pursuant to Section 4.08; and
 
(d)           to the extent permitted by Section 4.08, release any Borrowing
Base Property.
 
Upon request by the Administrative Agent at any time, the Required Lenders will
confirm in writing the Administrative Agent’s authority to release its interest
in particular types or items of property, or to release any Guarantor from its
obligations under the Guaranty pursuant to this Section 10.10.
 
ARTICLE XI.  MISCELLANEOUS
 
11.01 Amendments, Etc.No amendment or waiver of any provision of this Agreement
or any other Loan Document, and no consent to any departure by the Borrower or
any other Loan Party therefrom, shall be effective unless in writing signed by
the Required Lenders and the Borrower or the applicable Loan Party, as the case
may be, and acknowledged by the Administrative Agent, and each such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such amendment, waiver or
consent shall:
 
 
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(a) waive any condition set forth in Section 5.01(a) without the written consent
of each Lender;
 
(b) extend or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 9.02) without the written consent of such Lender;
 
(c) postpone any date fixed by this Agreement or any other Loan Document for any
payment or mandatory prepayment of principal, interest, fees or other amounts
due to the Lenders (or any of them) or any scheduled or mandatory reduction of
the Aggregate Commitments hereunder or under any other Loan Document without the
written consent of each Lender directly affected thereby;
 
(d) reduce the principal of, or the rate of interest specified herein on, any
Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso to this
Section 11.01) any fees or other amounts payable hereunder or under any other
Loan Document, or change the manner of computation of any financial ratio
(including any change in any applicable defined term) used in determining the
Applicable Rate that would result in a reduction of any interest rate on any
Loan or any fee payable hereunder without the written consent of each Lender
directly affected thereby; provided, however, that only the consent of the
Required Lenders shall be necessary to amend the definition of “Default Rate” or
to waive any obligation of the Borrower to pay interest or Letter of Credit Fees
at the Default Rate;
 
(e) change Section 9.03 in a manner that would alter the pro rata sharing of
payments required thereby without the written consent of each Lender;
 
(f) change any provision of this Section or the definition of “Required Lenders”
or any other provision hereof specifying the number or percentage of Lenders
required to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender;
 
(g) release all or substantially all of the value of the Collateral without the
written consent of each Lender, except to the extent the release of such
Collateral is permitted pursuant to Sections 4.08 or 10.10 (in which case such
release may be made by Administrative Agent acting alone); or
 
(h) release all or substantially all of the value of the Guaranty without the
written consent of each Lender, except to the extent the release of any
Guarantor is permitted pursuant to Section 10.10 (in which case such release may
be made by the Administrative Agent acting alone);
 
and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above,
affect the rights or duties of the L/C Issuer under this Agreement or any Issuer
Document relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the Swing
Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver
or consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the
Administrative Agent under this Agreement or
 
 
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any other Loan Document; and (iv) the Fee Letter may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties
thereto.  Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent
hereunder (and any amendment, waiver or consent which by its terms requires the
consent of all Lenders or each affected Lender may be effected with the consent
of the applicable Lenders other than Defaulting Lenders), except that (x) the
Commitment of any Defaulting Lender may not be increased or extended without the
consent of such Lender and (y) any waiver, amendment or modification requiring
the consent of all Lenders or each affected Lender that by its terms affects any
Defaulting Lender more adversely than other affected Lenders shall require the
consent of such Defaulting Lender.
 
11.02 Notices; Effectiveness; Electronic Communication.  
 
(a) Notices Generally.  Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in
subsection (b) below), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopier as follows, and all
notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:
 
(i) if to the Borrower, the Administrative Agent, the L/C Issuer or the Swing
Line Lender, to the address, telecopier number, electronic mail address or
telephone number specified for such Person on Schedule 11.02; and
 
(ii) if to any other Lender, to the address, telecopier number, electronic mail
address or telephone number specified in its Administrative Questionnaire
(including, as appropriate, notices delivered solely to the Person designated by
a Lender on its Administrative Questionnaire then in effect for the delivery of
notices that may contain material non-public information relating to the
Borrower).
 
Notices and other communications sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices and other communications sent by telecopier shall be deemed to
have been given when sent (except that, if not given during normal business
hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).  Notices and other
communications delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in such
subsection (b).
 
(b) Electronic Communications.  Notices and other communications to the Lenders
and the L/C Issuer hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent, provided that the foregoing
shall not apply to notices to any Lender or the L/C Issuer pursuant
 
 
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to Article II if such Lender or the L/C Issuer, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication.  The Administrative Agent or the Borrower
may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it,
provided that approval of such procedures may be limited to particular notices
or communications.
 
Unless the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.
 
(c) The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE
AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF
THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT
PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event
shall the Administrative Agent or any of its Related Parties (collectively, the
“Agent Parties”) have any liability to the Borrower, any Lender, the L/C Issuer
or any other Person for losses, claims, damages, liabilities or expenses of any
kind (whether in tort, contract or otherwise) arising out of the Borrower’s or
the Administrative Agent’s transmission of Borrower Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities or
expenses are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Agent Party; provided, however, that in no event shall any
Agent Party have any liability to the Borrower, any Lender, the L/C Issuer or
any other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).
 
(d) Change of Address, Etc.  Each of the Borrower, the Administrative Agent, the
L/C Issuer and the Swing Line Lender may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to the
other parties hereto.  Each other Lender may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to the
Borrower, the Administrative Agent, the L/C Issuer and the Swing Line
Lender.  In addition, each Lender agrees to notify the Administrative Agent from
time to time to ensure that the Administrative Agent has on record (i) an
effective address, contact name, telephone number, telecopier number and
electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender.  Furthermore, each Public
Lender agrees to cause at least one individual at or on behalf of such Public
Lender to at all times have selected the “Private Side Information” or similar
designation on the content declaration screen of the Platform in order to enable
such Public Lender or its
 
 
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delegate, in accordance with such Public Lender’s compliance procedures and
applicable Law, including United States Federal and state securities Laws, to
make reference to Borrower Materials that are not made available through the
“Public Side Information” portion of the Platform and that may contain material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal or state securities laws.
 
(e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any
notices (including telephonic Committed Loan Notices and Swing Line Loan
Notices) purportedly given by or on behalf of the Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms thereof, as understood by the recipient, varied from any confirmation
thereof.  The Borrower shall indemnify the Administrative Agent, the L/C Issuer,
each Lender and the Related Parties of each of them from all losses, costs,
expenses and liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf of the Borrower.  All telephonic
notices to and other telephonic communications with the Administrative Agent may
be recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.
 
11.03 No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender,
the L/C Issuer or the Administrative Agent to exercise, and no delay by any such
Person in exercising, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.
 
Notwithstanding anything to the contrary contained herein or in any other Loan
Document, the authority to enforce rights and remedies hereunder and under the
other Loan Documents against the Loan Parties or any of them shall be vested
exclusively in, and all actions and proceedings at law in connection with such
enforcement shall be instituted and maintained exclusively by, the
Administrative Agent in accordance with Section 9.02 for the benefit of all the
Lenders and the L/C Issuer; provided, however, that the foregoing shall not
prohibit (a) the Administrative Agent from exercising on its own behalf the
rights and remedies that inure to its benefit (solely in its capacity as
Administrative Agent) hereunder and under the other Loan Documents, (b) the L/C
Issuer or the Swing Line Lender from exercising the rights and remedies that
inure to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender,
as the case may be) hereunder and under the other Loan Documents, (c) any Lender
from exercising setoff rights in accordance with Section 11.08 (subject to the
terms of Section 2.14), or (d) any Lender from filing proofs of claim or
appearing and filing pleadings on its own behalf during the pendency of a
proceeding relative to any Loan Party under any Debtor Relief Law; and provided,
further, that if at any time there is no Person acting as Administrative Agent
hereunder and under the other Loan Documents, then (i) the Required Lenders
shall have the rights otherwise ascribed to the Administrative Agent pursuant to
Section 9.02 and (ii) in addition to the matters set forth in clauses (b), (c)
and (d) of the preceding proviso and subject to Section 2.14, any Lender may,
with the consent of the Required Lenders, enforce any rights and remedies
available to it and as authorized by the Required Lenders.
 
 
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11.04 Expenses; Indemnity; Damage Waiver.  
 
(a) Costs and Expenses.  The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates (including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent), in connection with the syndication of the credit facilities provided for
herein, the preparation, negotiation, execution, delivery and administration of
this Agreement and the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the L/C Issuer in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder and (iii) all out-of-pocket expenses incurred by the
Administrative Agent, any Lender or the L/C Issuer (including the fees, charges
and disbursements of any counsel for the Administrative Agent, any Lender or the
L/C Issuer, in connection with the enforcement or protection of its rights
(A) in connection with this Agreement and the other Loan Documents, including
its rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit.
 
(b) Indemnification by the Borrower.  The Borrower shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the L/C
Issuer, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses (including
the fees, charges and disbursements of any counsel for any Indemnitee), incurred
by any Indemnitee or asserted against any Indemnitee by any third party or by
the Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or
thereunder, the consummation of the transactions contemplated hereby or thereby,
or, in the case of the Administrative Agent (and any sub-agent thereof) and its
Related Parties only, the administration of this Agreement and the other Loan
Documents (including in respect of any matters addressed in Section 3.01),
(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the L/C Issuer to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Materials on or
from any property owned or operated by the Borrower or any of its Subsidiaries,
or any Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory, whether brought by a third party or by the Borrower or any
other Loan Party, and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses
(x) are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee or (y) result from a claim brought by the Borrower
or any other Loan Party against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, if the
Borrower or such
 
 
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other Loan Party has obtained a final and nonappealable judgment in its favor on
such claim as determined by a court of competent jurisdiction.
 
(c) Reimbursement by Lenders.  To the extent that the Borrower for any reason
fails to indefeasibly pay any amount required under subsection (a) or (b) of
this Section to be paid by it to the Administrative Agent (or any sub-agent
thereof), the L/C Issuer or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the L/C Issuer or such Related Party, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount,
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent (or any such sub-agent) or the L/C Issuer in
its capacity as such, or against any Related Party of any of the foregoing
acting for the Administrative Agent (or any such sub-agent) or L/C Issuer in
connection with such capacity.  The obligations of the Lenders under this
subsection (c) are subject to the provisions of Section 2.13(d).
 
(d) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by
applicable law, the Borrower shall not assert, and hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or the
use of the proceeds thereof.  No Indemnitee referred to in subsection (b) above
shall be liable for any damages arising from the use by unintended recipients of
any information or other materials distributed to such unintended recipients by
such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for
direct or actual damages resulting from the gross negligence or willful
misconduct of such Indemnitee as determined by a final and nonappealable
judgment of a court of competent jurisdiction.
 
(e) Payments.  All amounts due under this Section shall be payable not later
than ten Business Days after demand therefor.
 
(f) Survival.  The agreements in this Section shall survive the resignation of
the Administrative Agent, the L/C Issuer and the Swing Line Lender, the
replacement of any Lender, the termination of the Aggregate Commitments and the
repayment, satisfaction or discharge of all the other Obligations.
 
11.05 Payments Set Aside.  To the extent that any payment by or on behalf of the
Borrower is made to the Administrative Agent, the L/C Issuer or any Lender, or
the Administrative Agent, the L/C Issuer or any Lender exercises its right of
setoff, and such payment or the proceeds of such setoff or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by the
Administrative Agent, the L/C Issuer or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of
such recovery, the obligation or part
 
 
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thereof originally intended to be satisfied shall be revived and continued in
full force and effect as if such payment had not been made or such setoff had
not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to
the Administrative Agent upon demand its applicable share (without duplication)
of any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the Federal Funds Rate from time to time in
effect.  The obligations of the Lenders and the L/C Issuer under clause (b) of
the preceding sentence shall survive the payment in full of the Obligations and
the termination of this Agreement.
 
11.06 Successors and Assigns.  
 
(a) Successors and Assigns Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that neither the Borrower nor
any other Loan Party may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section, (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section (and any other attempted assignment or transfer
by any party hereto shall be null and void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to
the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.
 
(b) Assignments by Lenders.  Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans (including for
purposes of this subsection (b), participations in L/C Obligations and in Swing
Line Loans) at the time owing to it); provided that any such assignment shall be
subject to the following conditions:
 
(i) Minimum Amounts.
 
(A) in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum
amount need be assigned; and
 
(B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the
principal outstanding balance of the Loans of the assigning Lender subject to
each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall
 
 
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              not be less than $5,000,000 unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed); provided, however, that concurrent assignments to members of an
Assignee Group and concurrent
              assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met.
 
(ii) Proportionate Amounts.  Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans or the Commitment
assigned, except that this clause (ii) shall not apply to rights in respect of
the Swing Line Lender’s rights and obligations in respect of Swing Line Loans;
 
(iii) Required Consents.  No consent shall be required for any assignment except
to the extent required by subsection (b)(i)(B) of this Section and, in addition:
 
(A) the consent of the Borrower (such consent not to be unreasonably withheld)
shall be required unless (1) an Event of Default has occurred and is continuing
at the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be
deemed to have consented to any such assignment unless it shall object thereto
by written notice to the Administrative Agent within five (5) Business Days
after having received notice thereof;
 
(B) the consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required if such assignment is to a Person that is
not a Lender, an Affiliate of such Lender or an Approved Fund with respect to
such Lender;
 
(C) the consent of the L/C Issuer (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment that increases the obligation
of the assignee to participate in exposure under one or more Letters of Credit
(whether or not then outstanding); and
 
(D) the consent of the Swing Line Lender (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment.
 
(iv) Assignment and Assumption.  The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together
with a processing and recordation fee in the amount of $3,500; provided,
however, that the Administrative Agent may, in its sole discretion, elect to
waive such processing and recordation fee in the case of any assignment.  The
assignee, if it is not a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire.
 
(v) No Assignment to Certain Persons.  No such assignment shall be made (A) to
the Borrower or any of the Borrower’s Affiliates or Subsidiaries, or (B) to any
 
 
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        Defaulting Lender or any of its Subsidiaries, or any Person who, upon
becoming a Lender hereunder, would constitute any of the foregoing Persons
described in this clause (B), or (C) to a natural person.
 
(vi) Certain Additional Payments.  In connection with any assignment of rights
and obligations of any Defaulting Lender hereunder, no such assignment shall be
effective unless and until, in addition to the other conditions thereto set
forth herein, the parties to the assignment shall make such additional payments
to the Administrative Agent in an aggregate amount sufficient, upon distribution
thereof as appropriate (which may be outright payment, purchases by the assignee
of participations or subparticipations, or other compensating actions, including
funding, with the consent of the Borrower and the Administrative Agent, the
applicable pro rata share of Loans previously requested but not funded by the
Defaulting Lender, to each of which the applicable assignee and assignor hereby
irrevocably consent), to (x) pay and satisfy in full all payment liabilities
then owed by such Defaulting Lender to the Administrative Agent or any Lender
hereunder (and interest accrued thereon) and (y) acquire (and fund as
appropriate) its full pro rata share of all Loans and participations in Letters
of Credit and Swing Line Loans in accordance with its Applicable
Percentage.  Notwithstanding the foregoing, in the event that any assignment of
rights and obligations of any Defaulting Lender hereunder shall become effective
under applicable Law without compliance with the provisions of this paragraph,
then the assignee of such interest shall be deemed to be a Defaulting Lender for
all purposes of this Agreement until such compliance occurs.
 
Subject to acceptance and recording thereof by the Administrative Agent pursuant
to subsection (c) of this Section, from and after the effective date specified
in each Assignment and Assumption, the assignee thereunder shall be a party to
this Agreement and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall continue
to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 11.04 with
respect to facts and circumstances occurring prior to the effective date of such
assignment.  Upon request, the Borrower (at its expense) shall execute and
deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender
of rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.
 
(c) Register.  The Administrative Agent, acting solely for this purpose as an
agent of the Borrower (and such agency being solely for tax purposes), shall
maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amounts of the
Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name
 
 
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is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Agreement, notwithstanding notice to the contrary. In
addition, the Administrative Agent shall maintain on the Register information
regarding the designation, and revocation of designation, of any Lender as a
Defaulting Lender.   The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.
 
(d) Participations.  Any Lender may at any time, without the consent of, or
notice to, the Borrower or the Administrative Agent, sell participations to any
Person (other than a natural person, a Defaulting Lender or the Borrower or any
of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or
a portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans (including such
Lender’s participations in L/C Obligations and/or Swing Line Loans) owing to
it); provided that (i) such Lender’s obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) the Borrower,
the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.
 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any  provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso to
Section 11.01 that affects such Participant.  Subject to subsection (e) of this
Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to subsection (b) of
this Section.  To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.14 as though it were a
Lender.
 
(e) Limitations upon Participant Rights.  A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent.  A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 3.01 unless the Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 3.01(e) as though it were a Lender.
 
(f) Certain Pledges.  Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement (including
under its Note, if any) to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided
that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.
 
 
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(g) Resignation as L/C Issuer or Swing Line Lender after
Assignment.  Notwithstanding anything to the contrary contained herein, if at
any time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, (i) upon 30 days’ notice to the
Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice
to the Borrower, resign as Swing Line Lender.  In the event of any such
resignation as L/C Issuer or Swing Line Lender, the Borrower shall be entitled
to appoint from among the Lenders a successor L/C Issuer or Swing Line Lender
hereunder; provided, however, that no failure by the Borrower to appoint any
such successor shall affect the resignation of Bank of America as L/C Issuer or
Swing Line Lender, as the case may be.  If Bank of America resigns as L/C
Issuer, it shall retain all the rights, powers, privileges and duties of the L/C
Issuer hereunder with respect to all Letters of Credit outstanding as of the
effective date of its resignation as L/C Issuer and all L/C Obligations with
respect thereto (including the right to require the Lenders to make Base Rate
Committed Loans or fund risk participations in Unreimbursed Amounts pursuant to
Section 2.04(c)).  If Bank of America resigns as Swing Line Lender, it shall
retain all the rights of the Swing Line Lender provided for hereunder with
respect to Swing Line Loans made by it and outstanding as of the effective date
of such resignation, including the right to require the Lenders to make Base
Rate Committed Loans or fund risk participations in outstanding Swing Line Loans
pursuant to Section 2.05(c).  Upon the appointment of a successor L/C Issuer
and/or Swing Line Lender, (a) such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring L/C Issuer
or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall
issue letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank of
America with respect to such Letters of Credit.
 
11.07 Treatment of Certain Information; Confidentiality.  Each of the
Administrative Agent, the Lenders and the L/C Issuer agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective
partners, directors, officers, employees, agents, trustees, advisors and
representatives (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or
any Eligible Assignee invited to be a Lender pursuant to Section 2.16(c) or (ii)
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with
the consent of the Borrower or (h) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or (y)
becomes available to the Administrative Agent, any Lender, the L/C Issuer or any
of their respective Affiliates on a nonconfidential basis from a source other
than the Borrower.  For purposes of this Section, “Information” means all
information received from the Borrower or any Subsidiary relating to the
Borrower or any Subsidiary or any of their respective businesses, other than any
such information that is available to the Administrative Agent, any Lender or
the L/C Issuer on a nonconfidential basis prior to disclosure by the Borrower or
any
 
 
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Subsidiary, provided that, in the case of information received from the Borrower
or any Subsidiary after the date hereof, such information is clearly identified
at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.
 
Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges
that (a) the Information may include material non-public information concerning
the Borrower or a Subsidiary, as the case may be, (b) it has developed
compliance procedures regarding the use of material non-public information and
(c) it will handle such material non-public information in accordance with
applicable Law, including United States Federal and state securities Laws.
 
11.08 Right of Setoff.If an Event of Default shall have occurred and be
continuing, each Lender, the L/C Issuer and each of their respective Affiliates
is hereby authorized at any time and from time to time, to the fullest extent
permitted by applicable law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final, in whatever currency) at any
time held and other obligations (in whatever currency) at any time owing by such
Lender, the L/C Issuer or any such Affiliate to or for the credit or the account
of the Borrower or any other Loan Party against any and all of the obligations
of the Borrower or such Loan Party now or hereafter existing under this
Agreement or any other Loan Document to such Lender or the L/C Issuer,
irrespective of whether or not such Lender or the L/C Issuer shall have made any
demand under this Agreement or any other Loan Document and although such
obligations of the Borrower or such Loan Party may be contingent or unmatured or
are owed to a branch or office of such Lender or the L/C Issuer different from
the branch or office holding such deposit or obligated on such indebtedness;
provided, that in the event that any Defaulting Lender shall exercise any such
right of setoff, (x) all amounts so set off shall be paid over immediately to
the Administrative Agent for further application in accordance with the
provisions of Section 2.18 and, pending such payment, shall be segregated by
such Defaulting Lender from its other funds and deemed held in trust for the
benefit of the Administrative Agent and the Lenders, and (y) the Defaulting
Lender shall provide promptly to the Administrative Agent a statement describing
in reasonable detail the Obligations owing to such Defaulting Lender as to which
it exercised such right of setoff.  The rights of each Lender, the L/C Issuer
and their respective Affiliates under this Section are in addition to other
rights and remedies (including other rights of setoff) that such Lender, the L/C
Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer
agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application, provided that the failure to give such notice shall
not affect the validity of such setoff and application.
 
11.09 Interest Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under the
Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent
or any Lender shall receive interest in an amount that exceeds the Maximum Rate,
the excess interest shall be applied to the principal of the Loans or,
 
 
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if it exceeds such unpaid principal, refunded to the Borrower.  In determining
whether the interest contracted for, charged, or received by the Administrative
Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.
 
11.10 Counterparts; Integration; Effectiveness.  This Agreement may be executed
in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof.  Except as provided in Section
5.01, this Agreement shall become effective when it shall have been executed by
the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto.  Delivery of an executed counterpart of a signature
page of this Agreement by telecopy or other electronic imaging means shall be
effective as delivery of a manually executed counterpart of this Agreement.
 
11.11 Survival of Representations and Warranties.  All representations and
warranties made hereunder and in any other Loan Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith
shall survive the execution and delivery hereof and thereof.  Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Credit Extension, and shall continue in full
force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.
 
11.12 Severability.  If any provision of this Agreement or the other Loan
Documents is held to be illegal, invalid or unenforceable, (a) the legality,
validity and enforceability of the remaining provisions of this Agreement and
the other Loan Documents shall not be affected or impaired thereby and (b) the
parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect of
which comes as close as possible to that of the illegal, invalid or
unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.  Without limiting the foregoing provisions of this Section
11.12, if and to the extent that the enforceability of any provisions in this
Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws,
as determined in good faith by the Administrative Agent, the L/C Issuer or the
Swing Line Lender, as applicable, then such provisions shall be deemed to be in
effect only to the extent not so limited.
 
11.13 Replacement of Lenders.  If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender
or any
 
 
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Governmental Authority for the account of any Lender pursuant to Section 3.01,
or if any Lender is a Defaulting Lender, then the Borrower may, at its sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in, and consents required by, Section
11.06), all of its interests, rights and obligations under this Agreement and
the related Loan Documents to an assignee that shall assume such obligations
(which assignee may be another Lender, if a Lender accepts such assignment),
provided that:
 
(a) the Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 11.06(b);
 
(b) such Lender shall have received payment of an amount equal to 100% of the
outstanding principal of its Loans and L/C Advances, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder and under the other
Loan Documents (including any amounts under Section 3.05) from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts);
 
(c) in the case of any such assignment resulting from a claim for compensation
under Section 3.04 or payments required to be made pursuant to Section 3.01,
such assignment will result in a reduction in such compensation or payments
thereafter; and
 
(d) such assignment does not conflict with applicable Laws.
 
A Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.
 
11.14 Governing Law; Jurisdiction; Etc.   
 
(a) GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
 
(b) SUBMISSION TO JURISDICTION.  THE BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW
YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF
NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL
COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN
 
 
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DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE
L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN
PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.
 
(c) WAIVER OF VENUE.  THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT.
 
(d) SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02.  NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW.
 
11.15 Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
 
11.16 No Advisory or Fiduciary Responsibility.  In connection with all aspects
of each transaction contemplated hereby (including in connection with any
amendment, waiver or other modification hereof or of any other Loan Document),
the Borrower and each other Loan Party acknowledges and agrees, and acknowledges
its Affiliates’ understanding, that: (i) (A) the arranging and other services
regarding this Agreement provided by the Administrative Agent and the Sole Lead
Arranger are arm’s-length commercial transactions between the Borrower , each
other Loan Party and their respective Affiliates, on the one hand, and the
Administrative Agent and the Sole Lead Arranger, on the other hand, (B) each of
the Borrower and the other Loan Parties has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has
 
 
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deemed appropriate, and (C) the Borrower and each other Loan Party is capable of
evaluating, and understands and accepts, the terms, risks and conditions of the
transactions contemplated hereby and by the other Loan Documents; (ii) (A) the
Administrative Agent and the Sole Lead Arranger each is and has been acting
solely as a principal and, except as expressly agreed in writing by the relevant
parties, has not been, is not, and will not be acting as an advisor, agent or
fiduciary for the Borrower, any other Loan Party or any of their respective
Affiliates, or any other Person and (B) neither the Administrative Agent nor the
Sole Lead Arranger has any obligation to the Borrower, any other Loan Party or
any of their respective Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other Loan
Documents; and (iii) the Administrative Agent and the Sole Lead Arranger and
their respective Affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of the Borrower, the other Loan Parties
and their respective Affiliates, and neither the Administrative Agent nor the
Sole Lead Arranger has any obligation to disclose any of such interests to the
Borrower, any other Loan Party any of their respective Affiliates.  To the
fullest extent permitted by law, each of the Borrower and the other Loan Parties
hereby waives and releases any claims that it may have against the
Administrative Agent and the Sole Lead Arranger with respect to any breach or
alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby.
 
11.17 Electronic Execution of Assignments and Certain Other Documents.  The
words “execution,” “signed,” “signature,” and words of like import in any
Assignment and Assumption or in any amendment or other modification hereof
(including waivers and consents) shall be deemed to include electronic
signatures or the keeping of records in electronic form, each of which shall be
of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.
 
11.18 USA PATRIOT Act.  Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies the Borrower that pursuant to the requirements of the
USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify the Borrower in accordance with the Act.  The
Borrower shall, promptly following a request by the Administrative Agent or any
Lender, provide all documentation and other information that the Administrative
Agent or such Lender requests in order to comply with its ongoing obligations
under applicable “know your customer” and anti-money laundering rules and
regulations, including the Act.
 
11.19 ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE
NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
 
 
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[SIGNATURE PAGES TO FOLLOW]
 
 
106

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.
 
BORROWER:
 
 
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan limited partnership
                         
                    By:     Sun Communities, Inc., a Maryland corporation, its
general partner
 
            By: /s/ Karen J. Dearing       
             Karen J. Dearing
                                                            Its:   Executive
Vice President
 
 
 
 
GUARANTORS:
 
 
SUN COMMUNITIES, INC., a Maryland corporation
 
                                                                         By:    /s/
Karen J. Dearing         
                                                                                            Karen
J. Dearing
                    
                                                                       Executive
Vice President
 
 
SUN TEXAS QRS, INC., a Michigan corporation
 
 
By:     /s/ Karen J. Dearing         
                                                                   Karen J.
Dearing
                                                        Its:     Executive Vice
President
 
 
SUN HOME SERVICES, INC., a Michigan corporation
 
 
By:      /s/ Karen J. Dearing          
            Karen J. Dearing
Its:      Executive Vice President
 
S-1
SIGNATURE PAGE TO CREDIT AGREEMENT

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SUN COMMUNITIES FUNDING GP L.L.C., a Michigan limited liability company
 
                    By:      SCF Manager Inc., a Michigan corporation, its
manager
                           
                       By:   /s/ Karen J. Dearing      
                                Karen J. Dearing
                                                                       Its:  
Executive Vice President
 
 
 
SUNCHAMP HOLDINGS LLC, a Michigan limited liability company
 
By:      Sun Communities Operating Limited Partnership, a Michigan limited
partnership, its manager
            
            By:      Sun Communities, Inc., a Maryland corporation, its general
parner
                                                 
                                       By: /s/ Karen J. Dearing          
                                                                                                                                  Karen
J. Dearing
                                                                                  Its:  Executive
Vice President
 
 
 
SUN COMMUNITIES TEXAS LIMITED PARTNERSHIP,  a Michigan limited partnership
 
By:      Sun Texas QRS, Inc., a Michigan corporation, its general partner
 
                       By: /s/ Karen J. Dearing               
                                                                              
Karen J. Dearing
                                                           Its:  Executive Vice
President
 
 
S-2
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SUN SADDLE BROOK LIMITED PARTNERSHIP, a Michigan limited partnership
 
 
By:
Sun Texas QRS, Inc., a Michigan corporation, its general partner

 
By: /s/ Karen J.
Dearing                                                                                                   
       Karen J. Dearing
                                                               Its:  Executive
Vice President
 
 
 
SUN OAKCREST LIMITED PARTNERSHIP, a Michigan limited partnership
 
 
By:
Sun Texas QRS, Inc., a Michigan corporation, its general partner

 
By: /s/ Karen J.
Dearing                                                                                       
       Karen J. Dearing
                                                               Its:  Executive
Vice President
 
 
 
RIVER HAVEN OPERATING COMPANY LLC, a Michigan limited liability company
 
 
By:
Sun Communities Operating Limited Partnership, a Michigan limited partnership,
its manager

 
 
By:
Sun Communities, Inc., a Maryland corporation, its general partner

 
By: /s/ Karen J. Dearing               
                                                                                     
 Karen J. Dearing
                                                                                  
Its:  Executive Vice President
 
 
S-3
SIGNATURE PAGE TO CREDIT AGREEMENT

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SUN COMMUNITIES FUNDING II LLC, a Michigan limited liability company
 
 
By:
Sun Communities Operating Limited Partnership, a Michigan limited partnership,
its manager

 
 
By:
Sun Communities, Inc., a Maryland corporation, its general partner

 
By: /s/ Karen J. Dearing               
                                                                                     
Karen J. Dearing
                                                                                       
Its:  Executive Vice President
 
 
 
 
SUN COMMUNITIES FUNDING LIMITED PARTNERSHIP, a Michigan limited partnership
 
 
By:
Sun Communities Funding GP L.L.C., a Michigan limited liability company, its
general partner

 
 
By:
SCF Manager Inc., a Michigan corporation, its manager

 
By: /s/ Karen J. Dearing               
                                                                                    
 Karen J. Dearing
                                                                                       
Its:  Executive Vice President
 
 
S-4
SIGNATURE PAGE TO CREDIT AGREEMENT

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BANK OF AMERICA, N.A., as Administrative Agent
 
By:  /s/ Kathleen W Bozek   
                                                                          
 
Name:  Kathleen W Bozek                                       
 
Title:   Senior Vice President
 
                                                                        
 
S-5
SIGNATURE PAGE TO CREDIT AGREEMENT

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BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender
 
By:  /s/ Kathleen W Bozek   
 
Name: Kathleen W Bozek                                       
 
Title: Senior Vice President
 
                                                                   
 
S-6
SIGNATURE PAGE TO CREDIT AGREEMENT

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                         FIFTH THIRD BANK, an Ohio banking corporation, as a
Lender
 
                         By: /s/ Klay Schmeisser                             
 
                         Name: Klay Schmeisser
 
                         Its:  Senior Vice President
                                                            
 
S-7
SIGNATURE PAGE TO CREDIT AGREEMENT

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                         PNC BANK, NATIONAL BANK, as a Lender
 
                         By: /s/ Timothy H. Hampton                           
 
                         Name:  Timothy H. Hampton
 
                         Its:  Senior Vice President
                                                          
 
S-8
SIGNATURE PAGE TO CREDIT AGREEMENT

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                         THE PRIVATEBANK AND TRUST COMPANY, an Illinois state
chartered bank, as a Lender
 
                         By: /s/ Stephen A. Anderson  
                             
 
                         Name: Stephen A. Anderson
 
                         Its: Managing Director
                                                     
 
S-9
SIGNATURE PAGE TO CREDIT AGREEMENT

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                         CITIBANK, N.A., as a Lender
 
                         By: /s/ John C. Rowland  
                                                         
 
                         Name:  John C. Rowland
 
                         Its:  Vice President
                                                       
 
S-10
SIGNATURE PAGE TO CREDIT AGREEMENT

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                         COMERICA BANK, as a Lender
 
                         By: /s/ Adam Sheets   
                                      
 
                         Name:  Adam Sheets
 
                         Its: Vice President
                                                    
 
S-11
SIGNATURE PAGE TO CREDIT AGREEMENT

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SCHEDULE 1.01(A)
 
 
COMMITMENTS
AND APPLICABLE PERCENTAGES
 
Lender
 
Commitment
   
Applicable Percentage
 
Bank of America, N.A.
  $ 37,500,000.00       28.846153846 %
Fifth Third Bank
  $ 27,500,000.00       21.153846154 %
PNC Bank
  $ 20,000,000.00       15.384615385 %
The PrivateBank and Trust
  $ 20,000,000.00       15.384615385 %
Company
               
Citibank, N.A.
  $ 15,000,000.00       11.538461538 %
Comerica Bank
  $ 10,000,000.00       7.692307692 %                  
Total:
  $ 130,000,000.00       100.000000000 %

 
 
 
Schedule 1.01 (A)
1

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SCHEDULE 1.01(B)
 
Initial Guarantors
 

 
1.           Sun Texas QRS, Inc., a Michigan corporation
 
2.           Sun Communities Funding GP L.L.C., a Michigan limited liability
company
 
3.           SunChamp Holdings LLC, a Michigan limited liability company
 
4.           Sun Communities Texas Limited Partnership,  a Michigan limited
partnership
 
5.           Sun Saddle Brook Limited Partnership, a Michigan limited
partnership
 
6.           Sun Oakcrest Limited Partnership, a Michigan limited partnership
 
7.           River Haven Operating Company LLC, a Michigan limited liability
company
 
8.           Sun Communities Funding II LLC, a Michigan limited liability
company
 
9.           Sun Home Services, Inc., a Michigan corporation
 
 
10.
Sun Communities Funding Limited Partnership, a Michigan limited partnership

 
 
11.
Sun Communities, Inc., a Maryland corporation

 

 

 
Schedule 1.01 (B)
1

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SCHEDULE 1.01(C)
 
SunChamp Collateral
1.  
Deed of Trust (with Security Agreement, Assignment of Rents and Leases and
Financing Statement) dated February 15, 2000, by FC RIVER RANCH LIMITED
PARTNERSHIP, a Michigan limited partnership, in favor of Bryan C. Birkeland, as
trustee, for the benefit of CONSECO FINANCE SERVICING CORP., a Delaware
corporation, beneficiary, recorded in the Travis County Clerk’s Official Public
Records, documents number 2000033217.

 
2.  
Absolute Assignment of Leases and Rents, dated February 15, 2000, by and between
FC RIVER RANCH LIMITED PARTNERSHIP, a Michigan limited partnership, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, recorded in Travis County
Clerk’s Official Public Records, document number 2000033218.

 
3.  
Cross Default and Cross Collateral Agreement, dated August 30, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTNERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, FC GLEN LAUREL
LLC, and CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded in
the Travis County Clerk’s Official Public Records, document number 2000176487.

 
4.  
Intercreditor and Subordination Agreement, dated February 15, 2000, by and
between CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
TEXAS MEZZANINE LENDER LIMITED PARTNERSHIP, and FC RIVER RANCH LIMITED
PARTNERSHIP, recorded in the Travis County Clerk’s Official Public Records,
document number 2000033220.

 
5.  
Deed of Trust (with Security Agreement, Assignment of Leases and Rents and
Financing Statement) dated January 26, 2000, by FC RIVER RANCH LIMITED
PARTNERSHIP, a Michigan limited partnership, in favor of James M. Nias, as
trustee, for the benefit of SUN COMMUNITIES TEXAS MEZZANINE LENDER LIMITED
PARTNERSHIP, a Michigan limited partnership, recorded in the Travis County
Clerk’s Official Public Records, documents number 2000033222.

 
6.  
Deed of Trust (with Security Agreement, Assignment of Leases and Rents and
Financing Statement) dated February 4, 2000, by FC STONEBRIDGE LIMITED
PARTNERSHIP, a Michigan limited partnership, in favor of James M. Nias, as
trustee, for the benefit of SUN COMMUNITITES TEXAS MEZZANINE LENDER LIMITED
PARTNERSHIP, a Michigan limited partnership, beneficiary, recorded under
document number 20000-0021826, Vol. 8304, Page 81, in the Bexar County Clerk’s
Official Public Records, Texas.

 
7.  
Intercreditor and Subordination Agreement, dated January 31, 2000, by and
between CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
TEXAS MEZZANINE LENDER LIMITED PARTNERSHIP, and FC STONEBRIDGE LIMITED
PARTNERSHIP, recorded in the Bexar County Clerk’s Official Public Records, file
number 2000-0021825, Vol. 8304, Page 0060.

 
 
Schedule 1.01 (C)
1

--------------------------------------------------------------------------------

 
 
8.  
Deed of Trust (with Security Agreement, Assignment of Rents and Leases and
Financing Statement) dated January 31, 2000, by and between FC STONEBRIDGE
LIMITED PARTNERSHIP, a Michigan limited partnership, and Larry A. Jack, as
trustee, for the benefit of CONSECO FINANCE SERVICING CORP., a Delaware
corporation, beneficiary, recorded in the Bexar County Clerk’s Official Public
Records, file number 2000-0021821, Vol. 8303, Page 2032.

 
9.  
Absolute Assignment of Leases and Rents, dated January 31, 2000, by and between
FC STONEBRIDGE LIMITED PARTNERSHIP, a Michigan limited partnership, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation; recorded in Bexar County
Clerk’s Official Public Records, file number 2000-0021822, Vol. 8303, Page 2073.

 
10.  
Cross Default and Cross Collateral Agreement, dated January 31, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTNERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, recorded in the Bexar County
Clerk’s Official Public Records, file number 2000-0021824, Vol. 8304, Page 0015.

 
11.  
Cross Default and Cross Collateral Agreement, dated August 30, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTNERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, FC GLEN LAUREL
LLC, AND CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded in
the Bexar County Clerk’s Official Public Records, file number 2000-0197960, Vol.
8648, Page 1205.

 
12.  
Deed of Trust (with Security Agreement, Assignment of Rents and Leases and
Financing Statement) dated January 31, 2000, by and between FC SUMMIT RIDGE
LIMITED PARTNERSHIP, a Michigan limited partnership, and Larry A. Jack, as
trustee, for the benefit of CONSECO FINANCE SERVICING CORP., a Delaware
corporation, beneficiary, recorded in the Bexar County Clerk’s Official Public
Records, file number 2000-0021834, Vol. 8304, Page 0180.

 
13.  
Absolute Assignment of Leases and Rents, dated January 31, 2000, by and between
FC SUMMIT RIDGE LIMITED PARTNERSHIP, a Michigan limited partnership, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, recorded in the Bexar County
Clerk’s Official Public Records, file number 2000-0021835, Vol. 8304, Page 0218.

 
14.  
Cross Default and Cross Collateral Agreement, dated January 31, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTNERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, recorded in the Bexar County
Clerk’s Official Public Records, file number 2000-0021837, Vol. 8304, Page 0248.

 
 
Schedule 1.01 (C)
2

--------------------------------------------------------------------------------

 
 
15.  
Intercreditor and Subordination Agreement, dated January 31, 2000, by and
between CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
TEXAS MEZZANINE LENDER LIMITED PARTNERSHIP, and FC SUMMIT RIDGE LIMITED
PARTNERSHIP, recorded in Bexar County Clerk’s Official Public Records, file
number 2000-0021838, Vol. 8304, Page 0292.

 
16.  
Cross Default and Cross Collateral Agreement, dated August 30, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTNERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, CONSECO FINANCE SERVICING CORP., a Delaware
corporation, recorded in the Bexar County Clerk’s Official Public Records, file
number 2000-0197960, Vol. 8648, Page 1205.

 
17.  
Deed of Trust (with Security Agreement, Assignment of Rents and Leases and
Financing Statement) dated February 4, 2000, by and between FC SUMMIT RIDGE
LIMITED PARTNERSHIP, a Michigan limited partnership, in favor of James M. Nias,
as trustee, for the benefit of SUN COMMUNITIES TEXAS MEZZANINE LENDER LIMITED
PARTNERSHIP, a Michigan limited partnership, beneficiary, recorded under
document number 2000-0021839, Vol. 8304, Page 310, in the Bexar County Clerk’s
Official Public Records, Texas.

 
18.  
Open-end Mortgage and Security Agreement, dated January 31, 2000, by and between
FC EAST FORK CROSSING LLC, a Michigan limited liability company (the
“Borrower”), and CONSECO FINANCE SERVICING CORP., a Delaware corporation, of
record in the Recorder’s Office of Clermont County, Ohio, as instrument number
200000003789, Book 1249, Page 1895.

 
19.  
Assignment of Rents, Leases, Profits and Contracts, dated January 31, 2000, by
and between FC EAST FORK CROSSING LLC, a Michigan limited liability company, and
CONSECO FINANCE SERVICING CORP., a Delaware corporation, of record in the
Recorder’s Office of Clermont County, Ohio, as instrument number 200000003790,
Book 1249, Page 1922.

 
20.  
Cross Default and Cross Collateral Agreement, dated January 31, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARNTERSHIP, FC SUMMIT
RIDGE LIMITED PARNTERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, of record in the Recorder’s
Office of Clermont County, Ohio, as instrument number 200000003792, Book 1249,
Page 1938.

 
21.  
Intercreditor and Subordination Agreement, dated January 31, 2000, by and
between CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
MEZZANINE LENDER, LLC, and FC EAST FORK CROSSING LLC, a Michigan limited
liability company, of record in the Recorder’s Office of Clermont County, Ohio,
as instrument number 200000003793, Book 1249, Page 1982.

 
 
Schedule 1.01 (C)
3

--------------------------------------------------------------------------------

 
 
22.  
Cross Default and Cross Collateral Agreement, dated August 30, 2002, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTNERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, FC GLEN LAUREL
LLC, and CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded in
Book 1288, Page 1495, Instrument number 200000029588 in the Recorder’s Office of
Clermont County, Ohio

 
23.  
Open-End Mortgage, Security Agreement, Assignment of Leases and Rents and
Financing Statement, dated February 4, 2000, by FC EAST FORK CORSSING LLC, a
Michigan limited liability company, in favor of SUN COMMUNITIES MEZZANINE
LENDER, LLC, a Michigan limited liability company, recorded in Book 1249, Page
1992, Instrument number 200000003794 in the Recorder’s Office of Clermont
County, Ohio.

 
24.  
Deed of Trust and Security Agreement, dated August 30, 2000, by FC GLEN LAUREL
LLC, a Michigan limited liability company, in favor of R. Frank Gray, as
trustee, for the benefit of SUN COMMUNITIES MEZZANINE LENDER, LLC, a Michigan
limited liability company, recorded in Book 2967, Page 200 of the Cabarrus
County Registry, North Carolina, document number 021504.

 
25.  
Intercreditor and Subordination Agreement, dated August 30, 2000, by and between
CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
MEZZANINE LENDER, LLC, and FC GLEN LAUREL LLC, a Michigan limited liability
company, recorded in Book 2967, Page 145, Cabarrus County Registry.

 
26.  
Deed of Trust, Assignment of Leases and Security Agreement dated August 30,
2000, by and between FC GLEN LAUREL LLC, in favor of Ashley L. Hogewood, Jr.,
trustee, for the benefit of CONSECO FINANCE SERVICING CORP., a Delaware
corporation, beneficiary, recorded in Book 2967, Page 111, Cabarrus County
Registry.

 
27.  
Assignment of Rents, Leases, Profits and Contracts, dated August 30, 2000, by
and between FC GLEN LAUREL LLC, a Michigan limited liability company, and
CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded in Book 2967,
Page 135, Cabarrus County Registry.

 
28.  
Cross Default and Cross Collateral Agreement dated August 30, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK, LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE RIDGE LIMITED PARTNERSHIP, FC
GLEN LAUREL LLC, and CONSECO FINANCE SERVICING CORP., a Delaware corporation,
recorded in Book 2967, Page 157, Cabarrus County Registry.

 
29.  
Mortgage, Security Agreement, Assignment of Leases and Rents and Financing
Statement, dated February 4, 2000, by FC PEBBLE CREEK LLC, a Michigan limited
liability company, for the benefit of SUN COMMUNITIES MEZZANINE LENDER, LLC, a
Michigan limited liability company, recorded as instrument number 2000-003255 in
the Office of the Recorder of Johnson County, Indiana.

 
 
Schedule 1.01 (C)
4

--------------------------------------------------------------------------------

 
 
30.  
Intercreditor and Subordination Agreement, dated January 31, 2000, by and
between CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
MEZZANINE LENDER, LLC, and FC PEBBLE CREEK, LLC, a Michigan limited liability
company, recorded as instrument number 2000-003256, in the Office of the
Recorder of Johnson County, Indiana.

 
31.  
Mortgage and Security Agreement, dated January 31, 2000, by and between FC
PEBBLE CREEK, LLC, and CONSECO FINANCE SERVICING CORP., a Delaware corporation,
recorded as instrument number 2000-003252, in the Office of the Recorder of
Johnson County, Indiana.

 
32.  
Assignment of Rents, Leases, Profits and Contracts, dated January 31, 2000, by
and between FC PEBBLE CREEK, LLC, a Michigan limited liability company, and
CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded as instrument
number 2000-003253 in the Office of the Recorder of Johnson County, Indiana.

 
33.  
Cross Default and Cross Collateral Agreement, dated August 30, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, FC GLEN LAUREL
LLC, and CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded as
instrument number 2000-025417 in the Office of the Recorder of Johnson County,
Indiana.

 
34.  
Deed of Trust, Assignment of Leases and Security Agreement dated January 31,
2000 by FC MEADOWBROOK LLC, in favor of Ashley L. Hogewood, Jr., trustee, for
the benefit of CONSECO FINANCE SERVICING CORP., a Delaware corporation,
beneficiary, recorded in Book 11072, Page 650, as instrument number 2000016226,
Mecklenburg County Public Registry.

 
35.  
Assignment of Rents, Leases, Profits and Contracts, dated January 31, 2000 by
and between FC MEADOWBROOK LLC, a Michigan limited liability company, and
CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded in Book 11072,
Page 687, as instrument number 2000016227, Mecklenburg County Public Registry.

 
36.  
Cross Default and Cross Collateral Agreement, dated August 30, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, FC GLEN LAUREL
LLC, and CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded in
Book 11871, Page 680, as instrument number 2001009011, Mecklenburg County Public
Registry.

 
37.  
Intercreditor and Subordination Agreement, dated January 31, 2000, by and
between CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
MEZZANINE LENDER, LLC, and FC MEADOWBROOK LLC, a Michigan limited liability
company, recorded in Book 11092, Page 359, as instrument number 2000021242,
Mecklenburg county Public Registry.

 
 
Schedule 1.01 (C)
5

--------------------------------------------------------------------------------

 
 
38.  
Deed of Trust and Security Agreement, dated February 4, 2000, by FC MEADOWBROOK
LLC, a Michigan limited liability company, in favor of R. Frank Gray, as
trustee, for the benefit of SUN COMMUNITIES MEZZANINE LENDER, LLC, a Michigan
limited liability company, recorded in Book 11072, Page 788 of the Mecklenburg
County Registry, North Carolina, document number 2000016230.

 
39.  
Deed of Trust (With Security Agreement, Assignment of Leases and Rents and
Financing Statement) dated December 29, 1999, by CP COMAL FARMS LIMITED
PARTNERSHIP, a Michigan limited partnership, in favor of James M. Nias, as
trustee, for the benefit of SUN COMMUNITIES MEZZANINE LENDER, LLC, a Michigan
limited liability company, recorded in the Comal County Clerk’s Official Public
Records, document number 200006002028.

 
40.  
Intercreditor and Subordination Agreement, dated May 1, 2000, by and between
CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES TEXAS
MEZZANINE LENDER LIMITED PARTNERSHIP, and CP COMAL FARMS LIMITED PARTNERSHIP,
recorded in the Comal County Clerk’s Official Public Records, document number
200006013597.

 
41.  
Deed of Trust (With Security Agreement, Assignment of Rents and Leases and
Financing Statement) dated May 1, 2000, CP COMAL FARMS LIMITED PARTNERSHIP, a
Michigan limited partnership, in favor of Bryan C. Birkeland, as trustee, for
the benefit of CONSECO FINANCE SERVICING CORP., a Delaware corporation,
beneficiary, recorded in the Comal County Clerk’s Official Public Records,
document number 200006013593.

 
42.  
Absolute Assignment of Leases and Rents, dated May 1, 2000, by and between CP
COMAL LIMITED PARTNERSHIP, a Michigan limited partnership, and CONSECO FINANCE
SERVICING CORP., a Delaware corporation, recorded in the Comal County Clerk’s
Official Public Records, document number 200006013594.

 
43.  
Cross Default and Cross Collateral Agreement, dated May 1, 2000, by and between
CP CREEKSIDE LLC, CP COMAL FARMS LIMITED PARTNERSHIP, and CONSECO FINANCE
SERVICING CORP., a Delaware corporation, recorded in the Comal County Clerk’s
Official Public Records, document number 200006013596.

 
44.  
Cross Default and Cross Collateral Agreement, dated May 6, 2000, by and between
CP CREEKSIDE LLC, CP COMAL FARMS LIMITED PARTNERSHIP, CP WOODLAKE LIMITED
PARTNERHIP, and CONSECO FINANCE SERVICING CORP., a Delaware corporation,
recorded in the Comal County Clerk’s Official Public Records, document number
200006022646.

 
 
 
Schedule 1.01 (C)
6

--------------------------------------------------------------------------------

 

 
45.  
Modification to Deed of Trust, dated June 29, 2001, by CP COMAL FARMS LIMITED
PARTNERSHIP, a Michigan limited partnership, in favor of Bryan C. Birkeland, as
trustee, recorded, in the Comal County Clerk’s Official Public Records, document
number 200106023421.

 
46.  
Deed of Trust, Assignment of Leases and Security Agreement, dated April 19,
2000, by CP CREEKSIDE LLC, a Michigan limited liability company, in favor of
Ashley L. Hogewood, Jr., as trustee, for the benefit of CONSECO FINANCE
SERVICING CORP., a Delaware corporation, recorded in Book 1036, Page 822,
Rockingham County Registry.

 
47.  
Assignment of Rents, Leases, Profits and Contracts, dated April 19, 2000, by and
between CP CREEKSIDE LLC, a Michigan limited liability company, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, recorded in Book 1036, Page
845, Rockingham County Registry.

 
48.  
Cross Default and Cross Collateral Agreement, dated May 1, 2000, by and between
CP CREEKSIDE LLC, CP COMAL FARMS LIMITED PARTNERSHIP, and CONSECO FINANCE
SERVICING CORP., a Delaware corporation, recorded in Book 1040, Page 1292,
Rockingham County Registry.

 
49.  
Intercreditor and Subordination Agreement, dated April 19, 2000, by and between
CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES
MEZZANINE LENDER, LLC, and CP CREEKSIDE LLC, a Michigan limited liability
company, recorded in book 1036, Page 855, Rockingham County Registry.

 
50.  
Cross Default and Cross Collateral Agreement dated May 6, 2000, by and between
CP CREEKSIDE LLC, CP COMAL FARMS LIMITED PARTNERSHIP, CP WOODLAKE LIMITED
PARTNERHIP, and CONSECO FINANCE SERVICING CORP., a Delaware corporation,
recorded in the Rockingham County Registry.

 
51.  
Deed of Trust and Security Agreement, dated December 29, 1999, by FC CREEKSIDE
LLC, a Michigan limited liability company, in favor of R. Frank Gray, as
trustee, for the benefit of SUN COMMUNITEIS MEZZANINE LENDER, LLC, recorded in
Book 1030, Page 641, Rockingham County Registry, North Carolina.

 
52.  
Deed of Trust (With Security Agreement, Assignment of Rents and Leases and
Financing Statement) dated May 6, 2000, by and between CP WOODLAKE LIMITED
PARTNERSHIP, a Michigan limited partnership, and Bryan C. Birkeland, as trustee,
for the benefit of CONSECO FINANCE SERVICING CORP., a Delaware corporation,
beneficiary, recorded in the Bexar County Clerk’s Official Public Records, file
number 2000-0076877, Vol. 8413, Page 1212.

 
 
Schedule 1.01 (C)
7

--------------------------------------------------------------------------------

 
 
53.  
Absolute Assignment of Leases and Rents, dated May 6, 2000, by and between CP
WOODLAKE LIMITED PARTNERSHIP, a Michigan limited partnership, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, recorded in the Bexar County
Clerk’s Official Public Records, file number 2000-0076878, Vol. 8413, Page 1247.

 
54.  
Cross Default and Cross Collateral Agreement, dated May 6, 2000, by and between
CP CREEKSIDE LLC, CP COMAL FARMS LIMITED PARTNERSHIP, CP WOODLAKE LIMITED
PARTNERSHIP, and CONSECO FINANCE SERVICING CORP., a Delaware corporation,
recorded in the Bexar County Clerk’s Official Public Records, file number
2000-0076880, Vol. 8413, Page 1271.

 
55.  
Intercreditor and Subordination Agreement, dated May 6, 2000, by and between
CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITIES TEXAS
MEZZANINE LENDER LIMITED PARTNERSHIP, and CP WOODLAKE LIMITED PARTNERSHIP,
recorded in the Bexar County Clerk’s Official Public Records, file number
2000-0076881, Vol. 8413, Page 1285.

 
56.  
Deed of Trust (With Security Agreement, Assignment of Leases and Rents and
Financing Statement) dated December 29, 1999, by CP WOODLAKE LIMITED
PARTNERSHIP, a Michigan limited partnership in favor of James M.. Nias, as
trustee, for the benefit of SUN COMMUNITES MEZZANINE LENDER, LLC, a Michigan
limited liability company, recorded in the Bexar County Clerk’s Official Public
Records, document number 2000-0010656, Volume 8281, Page 416.

 
57.  
Deed of Trust (With Security Agreement, Assignment of Leases and Rents and
Financing Statement) dated January 24, 2000, by FC SUNSET RIDGE LIMITED
PARTNERSHIP, a Michigan limited partnership, in favor of Bryan C. Birkeland, as
trustee, for the benefit of CONSECO FINANCE SERVICING CORP., a Delaware
corporation, beneficiary, recorded under document number 0002793, Vol., 1631,
Page 52, in the Official Public Records of Hays County, Texas.

 
58.  
Absolute Assignment of Leases and Rents, dated January 24, 2000, by and between
FC SUNSET RIDGE LIMITED PARTNERSHIP, a Michigan limited partnership, and CONSECO
FINANCE SERVICING CORP., a Delaware corporation, recorded under document number
0002795, Vol. 1631, Page 104, in the Official Public Records of Hays County,
Texas.

 
 
Schedule 1.01 (C)
8

--------------------------------------------------------------------------------

 

 
59.  
Cross Default and Cross Collateral Agreement, dated January 18, 2000, by and
between FC EAST FORK CROSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE PARTNERSHIP, FC
SUMMIT RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, and
CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded under document
number 0002796, Vol. 1631, Page 120, in the Official Public Records of Hays
County, Texas.

 
60.  
Intercreditor and Subordination Agreement, dated January 26, 2000, by and
between CONSECO FINANCE SERVICING CORP., a Delaware corporation, SUN COMMUNITES
TEXAS MEZZANINE LENDER LIMITED PARTNERSHIP, and FC SUNSET RIDGE LIMITED
PARTNERSHIP, recorded under document number 0002797, Vol. 1631, Page 164, in the
Official Public Records of Hays County, Texas.

 
61.  
Cross Default and Cross Collateral Agreement, dated August 30, 2000, by and
between FC EAST FORK CORSSING LLC, FC MEADOWBROOK LLC, FC PEBBLE CREEK LLC, FC
RIVER RANCH LIMITED PARTNERSHIP, FC STONEBRIDGE LIMITED PARTNERSHIP, FC SUMMIT
RIDGE LIMITED PARTNERSHIP, FC SUNSET RIDGE LIMITED PARTNERSHIP, FC GLEN LAUREL
LLC, and CONSECO FINANCE SERVICING CORP., a Delaware corporation, recorded under
document number 00028199, Vol. 1745, Page 706, in the Official Public Records of
Hays County, Texas.

 
62.  
Deed of Trust (With Security Agreement, Assignment of Leases and Rents and
Financing Statement) dated January 26, 2000, by FC SUNSET RIDGE LIMITED
PARTNERSHIP, a Michigan limited partnership, in favor of James M. Nias, as
trustee, for the benefit of SUN COMMUNITIES TEXAS MEZZANINE LENDER LIMITED
PARTNERSHIP, a Michigan limited partnership, beneficiary, recorded under
document number 0002794, Vol. 1631, Page 86, in the Official Public Records of
Hays County, Texas.

 
 
 
Schedule 1.01 (C)
9

--------------------------------------------------------------------------------

 
SCHEDULE 1.01(D)
 

SunChamp Properties
 
 

 
Comal Farms (New Braunfels, TX)
Creekside (Reidsville, NC)
East Fork Crossing (Batavia, OH)
Glen Laurel (Concord, NC)
Meadowbrook (Charlotte, NC)
Pebble Creek (Greenwood, IN)
River Ranch (Austin, TX)
Stonebridge (San Antonio, TX)
Summit Ridge (Converse, TX)
Sunset Ridge (Kyle, TX)
Woodlake Trails (San Antonio, TX)

SunChamp Property Owner Entities

CP Comal Farms Limited Partnership
CP Creekside LLC
FC East Fork Crossing LLC
FC Glen Laurel LLC
FC Meadowbrook LLC
FC Pebble Creek LLC
FC River Ranch Limited Partnership
FC Stonebridge Limited Partnership
FC Summit Ridge Limited Partnership
FC Sunset Ridge Limited Partnership
CP Woodlake Limited Partnership
 
 
Schedule 1.01 (D)
1

--------------------------------------------------------------------------------

 
 
 
 
SCHEDULE 1.01(E)
 
Existing Letters of Credit
 
SUN COMMUNITIES
LETTERS OF CREDIT
 
 
Letter #
 
 Project
 
 Expiration
Date
 
 Amount
68046195
 
Multiple Properties
 
13-Oct-12
 
 $                                               705,000.00
S45368203
 
North Point
 
1-Oct-12
 
 $                                            1,269,632.61
S453944
 
River Ranch
 
1-Feb-12
 
 $                                                 19,500.00
S453955
 
Sunset Ridge - TX
 
27-Jan-12
 
 $                                            1,984,582.73
           
 $                                            3,978,715.34

 
 
 
Schedule 1.01 (E)
1

--------------------------------------------------------------------------------

 

 

 
SCHEDULE 1.01(F)
 
Equity Interest Collateral

 
Pledgor
Issuer
Interest in Issuer
PercentageOwnership
Sun Communities Operating Limited Partnership, a Michigan limited partnership
Sun Communities Funding LP, a Michigan limited partnership
Limited Partnership
99.0%
Sun Communities Operating Limited Partnership, a Michigan limited partnership
Sun Communities Funding II LLC, a Michigan limited liability company
Membership
100%
Sun Communities Operating Limited Partnership, a Michigan limited partnership
Sun Communities Texas LP, a Michigan limited partnership
Limited Partnership
99.0%
Sun Communities Operating Limited Partnership, a Michigan limited partnership
Sun Oakcrest LP, a Michigan limited partnership
Limited Partnership
99.0%
Sun Communities Operating Limited Partnership, a Michigan limited partnership
Sun Saddle Brook LP, a Michigan limited partnership
Limited Partnership
99.0%
Sun Communities Operating Limited Partnership, a Michigan limited partnership
River Haven Operating Company LLC, a Michigan limited liability company
Membership
100%
Sun Communities Operating Limited Partnership, a Michigan limited partnership
Sun/Forest Holdings LLC, a Michigan limited liability company
Membership
70.04%
Sun Communities Funding GP L.L.C., a Michigan limited liability company
Sun Communities Funding LP, a Michigan limited partnership
General Partnership
1.0%
Sun Texas QRS, Inc., a Michigan corporation
Sun Communities Texas LP, a Michigan limited partnership
General Partnership
1.0%
Sun Texas QRS, Inc., a Michigan corporation
Sun Oakcrest LP, a Michigan limited partnership
General Partnership
1.0%
Sun Texas QRS, Inc., a Michigan corporation
Sun Saddle Brook LP, a Michigan limited partnership
General Partnership
1.0%
SunChamp Holdings LLC, a Michigan limited liability company
SunChamp LLC, a Michigan limited liability company
Membership
41.76%

 
 
Schedule 1.01 (F)
1

--------------------------------------------------------------------------------

 
 
SCHEDULE 1.01(G)
 
MORTGAGE ASSIGNMENTS
 
1.  
That certain Collateral Assignment of Mortgage, Security Agreement, Assignment
of Leases and Rents and Financing Statement, and Intercreditor and Subordination
Agreement of even date hereof by and between Sun Communities Mezzanine Lender,
LLC, a Michigan limited liability company, as assignor, and Bank of America,
N.A., as assignee, encumbering the property known as East Fork Crossing located
in Batavia, Ohio, as further described therein.

 
2.  
That certain Collateral Assignment of Mortgage and Security Agreement,
Assignment of Rents, Leases, Profits and Contracts, Cross Default and Cross
Collateral Agreement, and Intercreditor and Subordination Agreement of even date
hereof by and between Sun Financial LLC, a Michigan limited liability company,
as assignor, and Bank of America, N.A., as assignee, encumbering the property
known as East Fork Crossing located in Batavia, Ohio, as further described
therein.

 
3.  
That certain Collateral Assignment of Deed of Trust and Intercreditor and
Subordination Agreement of even date hereof by and between Sun Communities Texas
Mezzanine Lender Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Comal Farms located in New Braunfels, Texas, as further described therein.

 
4.  
That certain Collateral Assignment of Deed of Trust, Absolute Assignment of
Leases and Rents, Cross Default and Cross Collateral Agreements, and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Financial Texas Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Comal Farms located in New Braunfels, Texas, as further described therein.

 
5.  
That certain Collateral Assignment of Deed of Trust, Assignment of Rents,
Leases, Profits and Contracts, Cross Default and Cross Collateral Agreements,
and Intercreditor and Subordination Agreement of even date hereof by and between
Sun Financial LLC, a Michigan limited liability company, as assignor, and Bank
of America, N.A., as assignee, encumbering the property known as Creekside
located in Reidsville, North Carolina, as further described therein.

 
6.  
That certain Collateral Assignment of Deed of Trust and Security Agreement and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Communities Mezzanine Lender, LLC, a Michigan limited liability company, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Creekside located in Reidsville, North Carolina, as further described
therein.

 
7.  
That certain Collateral Assignment of Deed of Trust, Assignment of Rents,
Leases, Profits and Contracts, Cross Default and Cross Collateral Agreements,
and Intercreditor and Subordination Agreement of even date hereof by and between
Sun Financial LLC, a Michigan limited liability company, as assignor, and Bank
of America, N.A., as assignee, encumbering the property known as Glen Laurel
located in Concord, North Carolina, as further described therein.

 
 
Schedule 1.01 (G)
1

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8.  
That certain Collateral Assignment of Deed of Trust and Security Agreement and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Communities Mezzanine Lender, LLC, a Michigan limited liability company, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Glen Laurel located in Concord, North Carolina, as further described therein.

 
9.  
That certain Collateral Assignment of Deed of Trust, Assignment of Rents,
Leases, Profits and Contracts, Cross Default and Cross Collateral Agreements,
and Intercreditor and Subordination Agreement of even date hereof by and between
Sun Financial LLC, a Michigan limited liability company, as assignor, and Bank
of America, N.A., as assignee, encumbering the property known as Meadowbrook
located in Charlotte, North Carolina, as further described therein.

 
10.  
That certain Collateral Assignment of Deed of Trust and Security Agreement and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Communities Mezzanine Lender, LLC, a Michigan limited liability company, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Meadowbrook located in Charlotte, North Carolina, as further described
therein.

 
11.  
That certain Collateral Assignment of Mortgage and Security Agreement,
Assignment of Rents, Leases, Profits and Contracts, Cross Default and Cross
Collateral Agreement, and Intercreditor and Subordination Agreement of even date
hereof by and between Sun Financial LLC, a Michigan limited liability company,
as assignor, and Bank of America, N.A., as assignee, encumbering the property
known as Pebble Creek located in Greenwood, Indiana, as further described
therein.

 
12.  
That certain Collateral Assignment of Mortgage, Security Agreement, Assignment
of Leases and Rents and Financing Statement, and Intercreditor and Subordination
Agreement of even date hereof by and between Sun Communities Mezzanine Lender,
LLC, a Michigan limited liability company, as assignor, and Bank of America,
N.A., as assignee, encumbering the property known as Pebble Creek located in
Greenwood, Indiana, as further described therein.

 
13.  
That certain Collateral Assignment of Deed of Trust, Absolute Assignment of
Leases and Rents, Cross Default and Cross Collateral Agreements, and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Financial Texas Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Woodlake located in San Antonio, Texas, as further described therein.

 
14.  
That certain Collateral Assignment of Deed of Trust and Intercreditor and
Subordination Agreement of even date hereof by and between Sun Communities Texas
Mezzanine Lender Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Woodlake located in San Antonio, Texas, as further described therein.

 
15.  
That certain Collateral Assignment of Deed of Trust, Absolute Assignment of
Leases and Rents, Cross Default and Cross Collateral Agreement, and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Financial Texas Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Stonebridge located in San Antonio, Texas, as further described therein.

 
 
Schedule 1.01 (G)
2

--------------------------------------------------------------------------------

 
 
16.  
That certain Collateral Assignment of Deed of Trust and Intercreditor and
Subordination Agreement of even date hereof by and between Sun Communities Texas
Mezzanine Lender Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Stonebridge located in San Antonio, Texas, as further described therein.

 
17.  
 That certain Collateral Assignment of Deed of Trust, Absolute Assignment of
Leases and Rents, Cross Default and Cross Collateral Agreement, and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Financial Texas Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as River Ranch located in Austin, Texas, as further described therein.

 
18.  
That certain Collateral Assignment of Deed of Trust and Intercreditor and
Subordination Agreement of even date hereof by and between Sun Communities Texas
Mezzanine Lender Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as River Ranch located in Austin, Texas, as further described therein.

 
19.  
That certain Collateral Assignment of Deed of Trust, Absolute Assignment of
Leases and Rents, Cross Default and Cross Collateral Agreement, and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Financial Texas Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Summit Ridge located in Converse, Texas, as further described therein.

 
20.  
That certain Collateral Assignment of Deed of Trust and Intercreditor and
Subordination Agreement of even date hereof by and between Sun Communities Texas
Mezzanine Lender Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Summit Ridge located in Converse, Texas, as further described therein.

 
21.  
That certain Collateral Assignment of Deed of Trust, Absolute Assignment of
Leases and Rents, Cross Default and Cross Collateral Agreement, and
Intercreditor and Subordination Agreement of even date hereof by and between Sun
Financial Texas Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Sunset Ridge located in Kyle, Texas, as further described therein.

 
22.  
That certain Collateral Assignment of Deed of Trust and Intercreditor and
Subordination Agreement of even date hereof by and between Sun Communities Texas
Mezzanine Lender Limited Partnership, a Michigan limited partnership, as
assignor, and Bank of America, N.A., as assignee, encumbering the property known
as Sunset Ridge located in Kyle, Texas, as further described therein.

 

 
Schedule 1.01 (G)
3

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SCHEDULE 4.01
 
Initial Borrowing Base Properties
 
1.      Bedford Hills Mobile  Village (Battle Creek, MI)
 
2.      Countryside Village MHC (Perry, MI)
 
3.      Cutler Estates Mobile Village (Grand Rapids, MI)
 
4.      Edwardsville Mobile Home Park (Edwardsville, KS)
 
5.      Sherman Oaks MHC (Jackson, MI)
 
6.      Timberbrook Mobile Home Park (Bristol, IN)
 
7.      Comal Farms (New Braunfels, TX)
 
8.      Creekside (Reidsville, NC)
 
9.      East Fork Crossing (Batavia, OH)
 
10.  Glen Laurel (Concord, NC)
 
11.  Meadowbrook (Charlotte, NC)
 
12.  Pebble Creek (Greenwood, IN)
 
13.  River Ranch (Austin, TX)
 
14.  Stonebridge (San Antonio, TX)
 
15.  Summit Ridge (Converse, TX)
 
16.  Sunset Ridge (Kyle, TX)
 
17.  Woodlake Trails (San Antonio, TX)
 
18.  Bell Crossing (Clarksville, Tennessee)
 
19.  Cobus Green (Elkhart, Indiana)
 
20.  College Park Estates (Canton, Michigan)
 
21.  Desert View Village (West Wendover, Nevada)
 

 
 
Schedule 4.01
1

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22.  North Point Estates (Pueblo, Colorado)
 
23.  Pine Hills (Middlebury, Indiana)
 
24.  Sunset Ridge (Portland Twp., Michigan)
 
25.  Kenwood RV and Mobile Home Plaza (LaFeria, Texas)
 
26.  Pecan Branch (Williamson County, Texas)
 
27.  Oak Crest MHC (Austin, Tx)
 
28.  Saddlebrook MHC (Austin, TX)
 
29.  River Haven Village (Grand Haven, Michigan)
 

 
 
 
 
Schedule 4.01
2

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