Document:

Exhibit
10.3

 

EXECUTION
COPY

 

 

$5,250,000,000 BRIDGE LOAN
AGREEMENT

 

Among

 

CAPMARK FINANCIAL GROUP
INC.,

 

The Several Lenders

from Time to Time Parties Hereto,

 

CITICORP NORTH AMERICA, INC.

as Administrative Agent,

 

J.P. MORGAN SECURITIES INC.,

as Syndication Agent

 

CREDIT SUISSE,

DEUTSCHE BANK SECURITIES INC.,

GOLDMAN SACHS CREDIT PARTNERS L.P.,

- and -

THE ROYAL BANK OF SCOTLAND PLC,

as Documentation Agents

 

Dated as of March 23, 2006

 

 

CITIGROUP GLOBAL MARKETS
INC.,

J.P. MORGAN SECURITIES INC.,

CREDIT SUISSE,

DEUTSCHE BANK SECURITIES INC.,

GOLDMAN SACHS CREDIT PARTNERS, L.P.,

- and -

THE ROYAL BANK OF SCOTLAND PLC,

as Joint Lead Arrangers and Joint Bookrunners

 

 

 

TABLE
OF CONTENTS

 

Table of Contents

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINITIONS

  	
   

  	
  1

  
	
  1.1.

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.2.

  	
  Other Definitional
  Provisions

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF THE
  FACILITIES

  	
   

  	
  15

  
	
  2.1.

  	
  Commitments

  	
   

  	
  15

  
	
  2.2.

  	
  Procedure for Borrowing

  	
   

  	
  15

  
	
  2.3.

  	
  Termination or Reduction
  of Commitments

  	
   

  	
  15

  
	
  2.4.

  	
  Prepayments

  	
   

  	
  15

  
	
  2.5.

  	
  Conversion and Continuation
  Options

  	
   

  	
  16

  
	
  2.6.

  	
  Minimum Amounts of
  Eurodollar Borrowings; Interest Periods

  	
   

  	
  16

  
	
  2.7.

  	
  Repayment of Loans;
  Evidence of Debt

  	
   

  	
  17

  
	
  2.8.

  	
  Interest Rates and Payment
  Dates

  	
   

  	
  17

  
	
  2.9.

  	
  Facility Fee

  	
   

  	
  18

  
	
  2.10.

  	
  Computation of Interest
  and Fees

  	
   

  	
  18

  
	
  2.11.

  	
  Inability to Determine
  Interest Rate

  	
   

  	
  19

  
	
  2.12.

  	
  Pro Rata Treatment and
  Payments

  	
   

  	
  19

  
	
  2.13.

  	
  Illegality

  	
   

  	
  19

  
	
  2.14.

  	
  Increased Costs

  	
   

  	
  20

  
	
  2.15.

  	
  Taxes

  	
   

  	
  21

  
	
  2.16.

  	
  Indemnity

  	
   

  	
  23

  
	
  2.17.

  	
  Notice of Amounts Payable;
  Relocation of Funding Office; Mandatory Assignment

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  	
  24

  
	
  3.1.

  	
  Financial Condition

  	
   

  	
  24

  
	
  3.2.

  	
  No Change

  	
   

  	
  24

  
	
  3.3.

  	
  Corporate Existence

  	
   

  	
  24

  
	
  3.4.

  	
  Corporate Power;
  Authorization; Enforceable Obligations

  	
   

  	
  24

  
	
  3.5.

  	
  No Legal Bar

  	
   

  	
  25

  
	
  3.6.

  	
  No Material Litigation

  	
   

  	
  25

  
	
  3.7.

  	
  Federal Regulations

  	
   

  	
  25

  
	
  3.8.

  	
  Investment Company Act

  	
   

  	
  25

  
	
  3.9.

  	
  ERISA

  	
   

  	
  25

  
	
  3.10.

  	
  No Material Misstatements

  	
   

  	
  25

  
	
  3.11.

  	
  Solvency

  	
   

  	
  25

  
	
  3.12.

  	
  Purpose of Loans

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CONDITIONS PRECEDENT

  	
   

  	
  25

  
	
  4.1.

  	
  Conditions to Initial
  Loans

  	
   

  	
  25

  
	
  4.2.

  	
  Conditions to Maturity
  Extension

  	
   

  	
  27

  

 

 

	
  SECTION 5.

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  27

  
	
  5.1.

  	
  Financial Statements

  	
   

  	
  27

  
	
  5.2.

  	
  Certificates; Other
  Information

  	
   

  	
  28

  
	
  5.3.

  	
  Notices

  	
   

  	
  28

  
	
  5.4.

  	
  Conduct of Business and
  Maintenance of Existence

  	
   

  	
  28

  
	
  5.5.

  	
  Compliance with Laws, Etc.

  	
   

  	
  28

  
	
  5.6.

  	
  Payment of Taxes, Etc.

  	
   

  	
  28

  
	
  5.7.

  	
  Visitation Rights

  	
   

  	
  29

  
	
  5.8.

  	
  Keeping of Books

  	
   

  	
  29

  
	
  5.9.

  	
  Maintenance of Properties,
  Etc.

  	
   

  	
  29

  
	
  5.10.

  	
  Maintenance of Insurance

  	
   

  	
  29

  
	
  5.11.

  	
  Transactions with
  Affiliates

  	
   

  	
  29

  
	
  5.12.

  	
  Covenant to Guaranty
  Obligations

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  NEGATIVE COVENANTS

  	
   

  	
  30

  
	
  6.1.

  	
  Leverage Ratio

  	
   

  	
  30

  
	
  6.2.

  	
  Merger, Consolidation,
  etc.

  	
   

  	
  30

  
	
  6.3.

  	
  Limitation on Liens

  	
   

  	
  30

  
	
  6.4.

  	
  Indebtedness

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  EVENTS OF DEFAULT

  	
   

  	
  32

  
	
  7.1.

  	
  Events of Default. If any
  of the following events shall occur and be continuing:

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  THE AGENT

  	
   

  	
  33

  
	
  8.1.

  	
  Appointment

  	
   

  	
  33

  
	
  8.2.

  	
  Delegation of Duties

  	
   

  	
  33

  
	
  8.3.

  	
  Exculpatory Provisions

  	
   

  	
  34

  
	
  8.4.

  	
  Reliance by Agent

  	
   

  	
  34

  
	
  8.5.

  	
  Notice of Default

  	
   

  	
  34

  
	
  8.6.

  	
  Non-Reliance
  on Agent and Other Lenders

  	
   

  	
  34

  
	
  8.7.

  	
  Indemnification

  	
   

  	
  35

  
	
  8.8.

  	
  Agent in Its Individual
  Capacity

  	
   

  	
  35

  
	
  8.9.

  	
  Successor
  Agent

  	
   

  	
  35

  
	
  8.10.

  	
  Sub-Agent

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  MISCELLANEOUS

  	
   

  	
  36

  
	
  9.1.

  	
  Amendments and Waivers

  	
   

  	
  36

  
	
  9.2.

  	
  Notices

  	
   

  	
  37

  
	
  9.3.

  	
  No Waiver; Cumulative
  Remedies

  	
   

  	
  38

  
	
  9.4.

  	
  Survival of
  Representations and Warranties

  	
   

  	
  38

  
	
  9.5.

  	
  Payment of Expenses and
  Taxes

  	
   

  	
  38

  
	
  9.6.

  	
  Successors and Assigns;
  Participations and Assignments

  	
   

  	
  39

  
	
  9.7.

  	
  Adjustments

  	
   

  	
  42

  
	
  9.8.

  	
  Counterparts

  	
   

  	
  42

  
	
  9.9.

  	
  Judgment

  	
   

  	
  43

  
	
  9.10.

  	
  Severability

  	
   

  	
  44

  
	
  9.11.

  	
  GOVERNING LAW

  	
   

  	
  44

  

 

ii

 

	
  9.12.

  	
  USA PATRIOT Act

  	
  44

  	
   

  

 

	
  SCHEDULES

  
	
   

  
	
  I

  	
  Commitments

  
	
  II

  	
  Guarantors

  
	
  III

  	
  Administrative Schedule

  
	
  IV

  	
  Surviving Indebtedness

  
	
   

  
	
  EXHIBITS

  
	
   

  
	
  A

  	
  Assignment and Assumption

  
	
  B-1

  	
  Opinion of Lionel
  Sawyer & Collins, Nevada counsel to the Company

  
	
  B-2

  	
  Opinion of Simpson Thacher & Bartlett LLP, counsel to the
  Company

  
	
  C

  	
  Form of Note

  
	
  E

  	
  US Tax Compliance Certificate

  
	
  F

  	
  Form of Subsidiary Guaranty

  

 

iii

BRIDGE LOAN AGREEMENT, dated as of March 23,
2006, among:

 

(a)                                  CAPMARK FINANCIAL GROUP INC., a Nevada corporation
(the “Company”);

 

(b)                                 the several banks and other financial
institutions, including, as applicable, branches or affiliates thereof, from
time to time parties to this Agreement (the “Lenders”);

 

(c)                                  J.P. Morgan Securities Inc., as syndication
agent (in such capacity, the “Syndication Agent”);

 

(d)                                 Credit Suisse, Deutsche Bank Securities Inc.,
Goldman Sachs Credit Partners, L.P. and The Royal Bank of Scotland plc, as
documentation agents (each, in such capacity, a “Documentation Agent”);
and

 

(e)                                  CITICORP NORTH AMERICA, INC. (“CNAI”),
as administrative agent for the Lenders hereunder (in such capacity, the “Agent”).

 

The parties hereto hereby
agree as follows:

 

SECTION 1.  DEFINITIONS

 

1.1.  Defined Terms.  As used in this Agreement, the following terms
shall have the following meanings:

 

“A-Rated Specified Loans
and Securities”:  Specified Loans and
Securities of the type referred to in clause (c) of the definition thereof
which are not rated at least “AA-” by S&P, “Aa3” by Moody’s or “AA-” by
Fitch.

 

“Acquisition”:  the acquisition by the Investors of approximately
80.0% of the capital stock of the Company from GMAC Mortgage Group, Inc.
pursuant to the terms of the Purchase Agreement concurrently with the initial
extension of credit hereunder.

 

“Administrative Schedule”:  Schedule III to this Agreement, as
amended from time to time in accordance with the provisions hereof.

 

“Affiliate”:  as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person.  For purposes
of this definition, “control” of a Person means the power, directly or
indirectly, either to (a) vote 10% or more of the securities having
ordinary voting power for the election of directors (or persons performing
similar functions) of such Person or (b) direct or cause the direction of
the management and policies of such Person, whether by contract or otherwise.

 

“Agent”:  as defined in the preamble hereto.

 

“Agreement”:  this Agreement, as amended, supplemented or
otherwise modified from time to time.

 

“Applicable Margin”:  as defined in subsection 2.8(d).

 

“Approved Fund”:  as defined in subsection 9.6(b)(ii).

 

 

“ARB 51”:  Accounting Research Bulletin No. 51, as
amended.

 

“Arrangers”:  Citigroup Global Markets Inc., J.P. Morgan
Securities Inc., Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs
Credit Partners, L.P. and The Royal Bank of Scotland plc, in their capacity as
joint lead arrangers and joint bookrunners under this Agreement.

 

“Assignee”:  as defined in subsection 9.6(b)(i).

 

“Attributed
Capitalization”:  as of any date of
determination, (a) with respect to any Specified Subsidiary, the aggregate
consolidated value of the assets of such Specified Subsidiary, and (b) with
respect to any Specified Asset Category, the aggregate consolidated value of
the assets in such Specified Asset Category, in each case with “consolidated
value” being determined in a manner consistent with the consolidated value of
assets reflected on the Company’s financial statements delivered pursuant to subsection 5.1.

 

“Attributed Equity”:  Attributed Capitalization minus
Attributed Indebtedness.

 

“Attributed Indebtedness”:  as of any date of determination, with respect
to any Specified Subsidiary or Specified Asset Category, an amount equal to the
amount of the Attributed Capitalization of such Specified Subsidiary or
Specified Asset Category, respectively, in each case multiplied by the
Indebtedness Factor with respect to such Specified Subsidiary or Specified
Asset Category.

 

“Banking and Market
Destined Assets”:  all assets that
either (a) fall within any Specified Asset Category or (b) are owned
by any Specified Subsidiary.

 

“Bankruptcy Remote
Special Purpose Entity”:  a Person
that satisfies each of the following criteria: 
(i) such Person is an entity that is consolidated for accounting
purposes with the Company and designed to make remote the possibility that it
would enter into bankruptcy or other receivership; (ii) all or
substantially all of such Person’s assets consist of Receivables or securities
backed by Receivables plus any rights or other assets (including cash reserves)
designed to assure the servicing or timely distribution of proceeds to the
holders of its obligations; and (iii) Receivables or securities backed by
Receivables owned by such Person satisfy the legal isolation criteria set forth
in paragraph 9(a) of FAS 140 (in relation to the Company and any
Subsidiary that is not a Bankruptcy Remote Special Purpose Entity).

 

“Base Rate”:  a fluctuating interest rate per annum in
effect from time to time, which rate per annum shall at all times be equal to
the higher of:

 

(a)  the rate of interest announced
publicly by Citibank in New York, New York, from time to time, as
Citibank’s base rate; and

 

(b)  1/2 of one percent per annum
above the Federal Funds Rate.

 

“Base Rate Loans”:  Loans bearing interest at a rate determined
by reference to the Base Rate.

 

“Benefitted Lender”:  as defined in subsection 9.7.

 

“Board of Directors”:  as to the Company, its Board of Directors or
any committee thereof.

 

2

 

“Borrowing”:  the making of Loans of a single Type made by
the Lenders on a single date and, if applicable, as to which a single Interest
Period is in effect.

 

“Business Day”:  (a) in the case of a Eurodollar Loan,
any fundings, disbursements, payments and settlements in respect of any such Eurodollar
Loan, or any other dealings to be carried out pursuant to any Loan Document in
respect of any such Eurodollar Loan, a London Banking Day which is also a day
other than a Saturday or Sunday and on which banks are open for general banking
business in New York City and (b) in the case of an Base Rate Loan, any
fundings, disbursements, payments and settlements in respect of any such Base
Rate Loan, or any other dealings to be carried out pursuant to any Loan
Document in respect of any such Base Rate Loan, a day other than a Saturday or
Sunday and on which banks are open for general banking business in New York
City.

 

“Change of Control”:  (a) prior to the consummation of a
Qualifying IPO, the Equity Investors shall cease to own, collectively, at least
35% of the Voting Stock of the Company or (b) any Person or two or more
Persons acting in concert other than the Investors shall have acquired
beneficial ownership (within the meaning of Rule 13d-3 of the Securities
and Exchange Commission under the Securities Exchange Act of 1934), directly or
indirectly, of Voting Stock of the Company (or other securities convertible
into such Voting Stock) representing more than 50% of the combined voting power
of all Voting Stock of the Company or (c) prior to the consummation of a
Qualifying IPO, General Motors Corporation or any of its Affiliates shall hold
Voting Stock of the Company (or other securities convertible into such Voting
Stock) representing more than the combined voting power of all Voting Stock of
the Company held by the Equity Investors.

 

“Citibank”:  Citibank, N.A.

 

“CLO”:  as defined in subsection 9.6(b)(ii).

 

“Closing Date”:  the date on which each of the conditions
precedent set forth in subsection 4.1 shall have been satisfied.

 

“Closing Date Material
Adverse Effect”:  a material adverse
effect on the business, condition (financial or otherwise) or results of
operations of the Company and its Subsidiaries, taken as a whole, excluding the
effects of changes to the extent caused by or resulting from (a) changes
in business or economic conditions generally or the financial services
industries in which General Motors Acceptance Corporation, GMAC Mortgage Group, Inc.,
General Motors Corporation or the Company and its Subsidiaries operate, in each
case which do not have a materially disproportionate effect on the Company and
its Subsidiaries, taken as a whole (relative to other comparable industry
participants), (b) any outbreak of major armed hostilities in which the
United States is engaged or the occurrence of any terrorist attack upon the
United States or any part thereof, (c) changes in securities markets
generally (including any disruption thereof and any decline in the price of any
security or any market index), (d) changes after the date of this
Agreement in GAAP or (e) the performance of any obligations under the
Transaction Documents (as defined in the Purchase Agreement).

 

“CNAI”: Citicorp
North America, Inc.

 

“Code”:  the Internal Revenue Code of 1986, as amended
from time to time.

 

3

 

“Commitment”:  as to any Lender at any time, the amount set
forth opposite such Lender’s name on Schedule I hereto under the caption “Commitment”,
as such amount may be reduced at or prior to such time in accordance with the
provisions of this Agreement.

 

“Company”:  as defined in the preamble hereto.

 

“Conduit Lender”:  any special purpose funding vehicle that (i) is
organized under the laws of the United States or any state thereof and (ii) is
engaged in making, purchasing or otherwise investing in commercial loans in the
ordinary course of its business.

 

“Contractual Obligation”:  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.

 

“Default”:  any of the events specified in Section 7,
whether or not any requirement for the giving of notice, the lapse of time, or
both, or any other condition, has been satisfied.

 

“Designated Borrower”:  each “Designated Borrower” as defined in the
Senior Credit Facility.

 

“Designated Lenders”:  as defined in subsection 9.8(c).

 

“Documentation Agent”:  as defined in the preamble hereto.

 

“Dollars” and “$”:  the lawful currency of the United States of
America.

 

“Environmental Law”:  any Federal, state, local or foreign statute,
law, ordinance, rule, regulation, code, order, writ, judgment, injunction,
decree or judicial or agency interpretation, policy or guidance relating to
pollution or protection of the environment, health, safety or natural
resources, including, without limitation, those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of hazardous
materials.

 

“Environmental Permit”:  any permit, approval, identification number,
license or other authorization required under any Environmental Law.

 

“Equity Investors”:  Affiliates of Kohlberg Kravis Roberts &
Co. L.P., The Goldman Sachs Group, Inc., Dune Capital Management, L.P. and
Five Mile Capital Partners LLC.

 

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time.

 

“ERISA Affiliate”:  any Person that for purposes of Title IV
of ERISA is a member of the Company’s controlled group, or under common control
with the Company, within the meaning of Section 414(b) or (c) of
the Code.

 

“ERISA Event”:  (a) (i) the occurrence of a reportable
event, within the meaning of Section 4043 of ERISA, with respect to any
Plan unless the 30-day notice requirement with respect to such event has been
waived by the PBGC, or (ii) the requirements of subsection (1) of
Section 4043(b) of ERISA (without regard to subsection (2) of
such Section) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13)
of ERISA, of a Plan, and an event described in paragraph (9), (10), (11),
(12) or (13) of Section 4043(c) of ERISA is reasonably 

 

4

 

expected
to occur with respect to such Plan within the following 30 days; (b) the
application for a minimum funding waiver with respect to a Plan; (c) the
provision by the administrator of any Plan of a notice of intent to terminate
such Plan pursuant to Section 4041(a)(2) of ERISA (including any such
notice with respect to a plan amendment referred to in Section 4041(e) of
ERISA); (d) the withdrawal by the Company or any ERISA Affiliate from a
Multiple Employer Plan during a plan year for which it was a substantial
employer, as defined in Section 4001(a)(2) of ERISA; (e)  the
conditions for the imposition of a lien under Section 302(f) of ERISA
shall have been met with respect to any Plan; (f) the adoption of an
amendment to a Plan requiring the provision of security to such Plan pursuant
to Section 307 of ERISA; or (g) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA.

 

“Eurodollar Borrowing”:  a Borrowing comprised of Eurodollar Loans.

 

“Eurodollar Loan”:  Loans bearing interest at a rate determined
by reference to the Eurodollar Rate.

 

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, (a) the rate of interest
determined on the basis of the rate for deposits in Dollars for a period equal
to such Interest Period commencing on the first day of such Interest Period
appearing on Page 3750 of the Telerate screen as of 11:00 A.M.,
London time, two Business Days prior to the beginning of such Interest
Period.  In the event that such rate does
not appear on Page 3750 of the Telerate Service (or otherwise on such
service), the “Eurodollar Rate” shall be determined by reference to such
other publicly available service for displaying eurodollar rates as may be
agreed upon by the Agent and the Company or, in the absence of such agreement,
the “Eurodollar Rate” shall instead be the rate per annum equal to the
average of the respective rates notified to the Agent by each of the Reference
Lenders as the rate at which such Reference Lender is offered deposits in Dollars
at or about 10:00 A.M., New York City time, two Business Days prior to the
beginning of such Interest Period in the interbank eurodollar market where the
eurodollar and foreign currency and exchange operations in respect of its Eurodollar
Loans are then being conducted for delivery on the first day of such Interest
Period for the number of days comprised therein and in an amount comparable to
the amount of its Eurodollar Loan to be outstanding during such Interest
Period.

 

“Eurodollar Reserve Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula:

 

	
   

  	
  Eurodollar Rate

  	
   

  
	
   

  	
  1.00 – Eurodollar Reserve Requirements

  	
   

  

 

“Eurodollar Reserve
Requirements”:  for any day as
applied to a Eurodollar Loan, the aggregate (without duplication) of the
maximum rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including, without limitation, basic, supplemental,
marginal and emergency reserves under any regulations of the Board of Governors
of the Federal Reserve System or other Governmental Authority having
jurisdiction with respect thereto) dealing with reserve requirements prescribed
for eurodollar funding (currently referred to as “Eurodollar liabilities” in
Regulation D of such Board) maintained by a member bank of such System.

 

“Event of Default”:  any of the events specified in Section 7;
provided that any requirement for the giving of notice, the lapse of
time, or both, or any other condition, has been satisfied.

 

5

 

“Excluded Subsidiary”:  any Subsidiary of the Company that is (a) a
“controlled foreign corporation” of the Company under Section 957 of the
Code; (b) organized under the laws of a jurisdiction other than the United
States, any State thereof or the District of Columbia; (c) a Bankruptcy
Remote Special Purpose Entity; (d) prohibited by any Requirement of Law or
Contractual Obligation from providing a guaranty of the obligations of the
Company hereunder, provided that any such Contractual Obligation (i) shall
have been entered into or incurred prior to the Closing Date (or, in the case
of any Subsidiary formed or acquired by the Company subsequent to the Closing
Date, prior to such formation or acquisition) and (ii) in any event, shall
not have been entered into or incurred in contemplation of this provision; (e) any
Permitted Receivables Subsidiary; or (f) an Immaterial Subsidiary.

 

“Existing Indebtedness”:  Indebtedness of the Company and its
Subsidiaries existing immediately before the occurrence of the Closing Date.

 

“Extended Maturity Date”:  as defined in subsection 4.2.

 

“Facility”:  in an initial amount of $5,250,000,000 or, at
any time, the aggregate amount of the Lenders’ Commitments or the Loans
outstanding at such time.

 

“FAS
66”:  Statement of Financial
Accounting Standards No. 66.

 

“FAS 140”:  Statement of Financial Accounting Standards No. 140.

 

“Federal Funds Rate”:   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 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 charged to Citibank on such day on such transactions as determined
by the Agent.

 

“Fee Letter”:  that certain Fee Letter dated as of August 2,
2005 among the Arrangers and GMACCH Investor LLC.

 

“FIN 46(R)”:  FASB Interpretation No. 46 (revised December 2003).

 

“Financial Officer”:  with respect to any Person, the chief
financial officer, the chief accounting officer, a financial vice president or
the treasurer or assistant treasurer of such Person.

 

“Fitch”:  Fitch Investors’ Services Inc. or its
successors.

 

“Funding Office”:  for each Type of Loan, the Funding Office set
forth in respect thereof in the Administrative Schedule.

 

“GAAP”:  generally accepted accounting principles in
the United States of America as in effect from time to time and as applied by
the Company in the preparation of its public financial statements, except that
with respect to any Indebtedness that is determined in accordance with GAAP
contained in the definition of “Total Consolidated Indebtedness” and “Total
Capitalization” and the covenants contained in subsections 6.1 and 6.4, “GAAP”
shall mean 

 

6

 

generally
accepted accounting principles in the United States of America in effect on the
date hereof and in accordance with the audited financial statements of the
Company for the fiscal year ended December 31, 2004, and without giving
effect to any changes thereto or in the interpretation or application thereof
(including without limitation any changes in, or in the interpretation or
application of, FAS 140 or FIN 46(R)) after such date in the preparation
of its public financial statements.

 

“Government Sponsored
Enterprises”:  the collective
reference to (i) the Federal Home Loan Mortgage Corp. (Freddie MAC) and (ii) the
Federal National Mortgage Association (Fannie Mae).

 

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of government.

 

“Guarantors”:  the wholly owned, first-tier and second-tier Subsidiaries
of the Company listed on Schedule II and each other Subsidiary of the
Company that executes and delivers a guaranty pursuant to subsection 5.12
or otherwise executes and delivers a guaranty or guaranty supplement in form
and substance reasonably satisfactory to the Agent, guaranteeing the other Loan
Parties’ obligations under the Loan Documents.

 

“Guaranty”:  a subsidiary guaranty substantially in the
form of Exhibit F hereto, executed by each of the Guarantors listed on Schedule II,
together with each other guaranty and guaranty supplement delivered by a Guarantor,
in each case as amended, amended and restated, supplemented or otherwise
modified.

 

“Guarantee”:  as to any Person, any financial obligation,
contingent or otherwise, of such Person directly or indirectly guaranteeing any
Indebtedness of any other Person or in any manner providing for the payment of
any Indebtedness of any other Person, provided that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course
of business.  The value of any Guarantee
of any Person shall be determined by reference to the carrying value of such
Guarantee, with the “carrying value” being determined in a manner consistent
with the carrying value of Guarantees as reflected on the Company’s financial
statements delivered pursuant to subsection 5.1.

 

“Hedge Agreements”:  interest rate swap, cap or collar agreements,
interest rate future or option contracts, currency swap agreements, currency
future or option contracts and other hedging agreements.

 

“Hybrid Capital”:  “hybrid capital” instruments issued to GMAC
on the Closing Date on terms reasonably acceptable to the Arrangers in an
aggregate liquidation amount not to exceed $250,000,000.

 

“Immaterial Subsidiary”:  any direct or indirect Subsidiary of the Company
(a) whose total net assets, together with the total net assets of all of
its Subsidiaries, constitute less than 5% of the total consolidated net assets
of the Company and its Subsidiaries or (b) whose total net income,
together with the total net income of all of its Subsidiaries, constitute less
than 5% of the total consolidated net income of the Company and its
Subsidiaries, all as determined in accordance with GAAP.

 

7

 

“Indebtedness”:  as to any Person at a particular time,
without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP (but excluding any such
items to the extent accounted for under ARB 51, FAS 66 or FIN 46(R) in each
case in relation to the Company’s affordable tax credit syndication business):

 

(a)  all obligations of such Person for borrowed money and
all obligations of such Person evidenced by bonds, debentures, notes, loan
agreements, convertible securities (to the extent that they have put provisions
that are exercisable during the term of this Agreement) or other similar
instruments;

 

(b)  all direct or contingent obligations of such Person
arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments;

 

(c)  all obligations of such Person to pay the deferred
purchase price of property or services (other than trade accounts payable in
the ordinary course of business);

 

(d)  indebtedness (excluding prepaid interest thereon)
secured by a Lien on property owned or being purchased by such Person
(including indebtedness arising under conditional sales or other title
retention agreements), whether or not such indebtedness shall have been assumed
by such Person or is limited in recourse;

 

(e)  capitalized leases;

 

(f)  all Synthetic Debt (other than recourse factoring of
receivables);

 

(g)  all Guarantees of such Person in respect of any of the
foregoing; and

 

(h)  all obligations of such Person under Hedge Agreements.

 

Notwithstanding anything to
the contrary contained in the foregoing, in no event shall “Indebtedness” for
any purposes of this Agreement include any “Mezzanine Equity” or more than 25%
of any obligations in respect of Hybrid Capital as to which equity credit is
given by Moody’s or S&P, in each case, unless and until such time as such
equity or instruments become repayable or redeemable on a mandatory basis in
accordance with the terms thereof.

 

“Indebtedness Factor”:  for each of the Specified Subsidiaries and
Specified Asset Categories listed below, the amounts set forth opposite
thereto:

 

	
  GMAC
  Commercial Mortgage Bank

  	
  0.94

  	
   

  
	
   

  	
   

  	
   

  
	
  Escrow
  Bank USA

  	
  0.94

  	
   

  
	
   

  	
   

  	
   

  
	
  GMAC
  Commercial Mortgage Bank Europe plc

  	
  0.90

  	
   

  
	
   

  	
   

  	
   

  
	
  Specified
  Mortgage Loan Interests

  	
  0.92

  	
   

  
	
   

  	
   

  	
   

  
	
  Specified
  Loans and Securities (other than A-Rated Specified Loans and Securities)

  	
  0.97

  	
   

  
	
   

  	
   

  	
   

  
	
  A-Rated
  Specified Loans and Securities

  	
  0.90

  	
   

  

 

8

 

“Index Debt”:  the Company’s long-term senior unsecured
Indebtedness.

 

“Initial Maturity Date”:  March 23, 2008.

 

“Interest Payment Date”:  (a) as to any Base Rate Loan, the last
day of each March, June, September and December to occur while such
Loan is outstanding and the date such Loan is paid in full, (b) as to any Eurodollar
Loan, the last day of the Interest Period applicable thereto and (c) as to
any Eurodollar Loan, having an Interest Period longer than three months or 90
days, as the case may be, each day which is three months or 90 days, as the
case may be, after the first day of the Interest Period applicable thereto; provided
that in addition to the foregoing, each of (x) the date upon which the
Loans have been paid in full shall constitute an “Interest Payment Date” and
(y) the Maturity Date shall be deemed to be an “Interest Payment Date” with
respect to any interest which is then accrued hereunder.

 

“Interest Period”:  with respect to any Eurodollar Loan:

 

(a)  initially, the period
commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six months thereafter
or, to the extent available to all applicable Lenders, one-week, nine or twelve
months thereafter, as selected by the Company in its notice of borrowing or
notice of conversion, as the case may be, given with respect thereto; and

 

(b)  thereafter, each period
commencing on the last day of the next preceding Interest Period applicable to
such Eurodollar Loan and ending one, two, three or six months thereafter or, to
the extent available to all applicable Lenders, nine or twelve months
thereafter, as selected by the Company by irrevocable notice to the Agent not
less than three Business Days prior to the last day of the then current Interest
Period with respect thereto;

 

provided that all of the foregoing provisions relating to Interest Periods are
subject to the following:

 

(a)  if any Interest Period would
otherwise end on a day that is not a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless, in the case of an Interest
Period pertaining to a Eurodollar Loan, the result of such extension would be
to carry such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day; and

 

(b)  any Interest Period 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 a calendar month.

 

Notwithstanding anything to the contrary contained
in this Agreement, no Interest Period for Loans shall be selected by the
Company which ends on a date after the Maturity Date.

 

“Investors”:  the Equity Investors and the management,
officers and employees of the Company or any Subsidiary as of the Closing Date
who are or become investors in the Company.

 

9

 

“Lenders”:  as defined in the preamble hereto.

 

“Lien”:  any mortgage, pledge, lien, security
interest, conditional sale or other title retention agreement or other similar
encumbrance.

 

“Loan”:  as defined in subsection 2.1.

 

“Loan
Documents”:  this Agreement, each
Note and the Guaranty.

 

“Loan Parties”:  the Company and the Guarantors.

 

“London Banking Day”:  any day on which banks in London are open for
general banking business, including dealings in foreign currency and exchange.

 

“Majority Lenders”:  at any time, Lenders holding or owed at least
a majority in interest of the sum of the aggregate principal amount of all Commitments
or Loans outstanding.

 

“Material Adverse Effect”:  a material adverse effect on (a) the
financial condition of the Company and its Subsidiaries taken as a whole or (b) the
validity or enforceability of this Agreement or the rights or remedies of the
Agent and the Lenders hereunder.

 

“Maturity Date”:  as applicable, (a) if the maturity of
the Facility has not been extended in accordance with subsection 4.1, the
Initial Maturity Date or (b) if the maturity of the Facility has been
extended in accordance with subject to subsection 4.2, the Extended
Maturity Date.

 

“Mezzanine Equity”:  “mezzanine” or “temporary” equity issued to
members of management of the Company which the Company can become obligated to
redeem only upon the death or disability of the holder thereof.

 

“Moody’s”:  Moody’s Investors Service, Inc. and its
successors.

 

“Multiemployer Plan”:  a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, to which the Company or any ERISA Affiliate is making or accruing an
obligation to make contributions, or in respect of which the Company or any
ERISA Affiliate has liability under Section 4212 of ERISA.

 

“Multiple Employer Plan”:  a single employer plan, as defined in Section 4001(a)(15)
of ERISA, that (a) is maintained for employees of the Company or any ERISA
Affiliate and at least one Person other than the Company and the ERISA
Affiliates or (b) was so maintained and in respect of which the Company or
any ERISA Affiliate has liability under Section 4064 or 4069 of ERISA in
the event such plan has been or were to be terminated.

 

“Net Cash Proceeds”:  in respect of the issuance or incurrence of
Debt by any Person, the excess of (a) the sum of the cash and cash
equivalents received in connection with such incurrence or issuance over (b) the
underwriting discounts and commissions or other similar payments, and other
out-of-pocket costs, fees, commissions, premiums and expenses incurred by such Person
in connection with such incurrence or issuance to the extent such amounts were
not deducted in determining the amount referred to in clause (a).

 

“Non-Consenting Lender”:  in the event that the Majority Lenders have
agreed to any consent, waiver or amendment pursuant to subsection 9.1 that
requires the consent of the Majority 

 

10

 

Lenders, any Lender who is entitled to agree to such consent, waiver or
amendment but who does not so agree.

 

“Non-Excluded Taxes”:  as defined in subsection 2.15(a).

 

“Non-Executing Banks”:  as defined in subsection 9.8(b).

 

“Non-US Lender”:  as defined in subsection 2.15(b).

 

“Note”:  as defined in subsection 9.6(d).

 

“Participant”:  as defined in subsection 9.6(c).

 

“Patriot Act”:  as defined in subsection 9.14.

 

“Payment Office”:  for each Type of Loan, the Payment Office set
forth in respect thereof in the Administrative Schedule.

 

“PBGC”: 
the Pension Benefit Guaranty Corporation (or any successor).

 

“Permanent Securities”:  any
public issuance or private placement of unsecured debt securities by the
Company or its Subsidiaries (other than (x) any Designated Borrower organized
under the laws of a jurisdiction other than the United States of America, any
State thereof or the District of Columbia, solely to the extent that the
repatriation of the proceeds therefrom would give rise to adverse tax
consequences, (y) any Subsidiary organized under the laws of a jurisdiction
other than the United States of America, any State thereof or the District of
Columbia that is not a Designated Borrower, and (z) any Specified Subsidiary)
having a maturity of two years or more, in each case to the extent that the
aggregate amount for all such issuances or placements exceeds $100,000,000.

 

“Permitted Receivables
Financing”:  the limited recourse
sale or financing of any real estate receivables and mortgage notes and related
security by the Company or any of its Subsidiaries in connection with the sale,
securitization or syndication thereof (including for purposes of this
definition planned sales, securitizations or syndications scheduled (in the
ordinary course of business consistent with past practice) for execution within
60 days), which sale, securitization or syndication is (a) (i) with
recourse only to the extent usual and customary in asset securitization
transactions for companies with credit characteristics similar to those of the Company
or such Subsidiary and (ii) consistent with past practice or prudent
business practice or (b) is otherwise upon terms and conditions reasonably
satisfactory to the Agent.

 

“Permitted Receivables
Subsidiary”:  any single purpose
Subsidiary engaged principally in a Permitted Receivables Financing.

 

“Person”:  an individual, partnership, corporation,
company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever
nature.

 

“Plan”: 
a Multiple Employer Plan or a single employer plan, as defined in Section 4001(a)(15)
of ERISA, that (a) is maintained for employees of any Loan Party or any
ERISA Affiliate and no Person other than the Loan Parties and the ERISA
Affiliates or (b) was so 

 

11

 

maintained and in respect of which any Loan Party or any ERISA
Affiliate could have liability under Section 4069 of ERISA in the event
such plan has been or were to be terminated.

 

“Purchase Agreement”:  that certain Stock Purchase Agreement dated
as of August 2, 2005, as amended, among General Motors Acceptance Corporation,
GMAC Mortgage Group, Inc., GMAC Commercial Holding Corp. and GMACCH
Investor LLC, as amended, supplemented or otherwise modified from time to time.

 

“Qualifying IPO”:  the issuance by the Company or a direct or
indirect corporate parent thereof of its common equity interests in an
underwritten primary and/or secondary public offering (other than a public
offering pursuant to a registration statement on Form S-8) pursuant to an
effective registration statement filed with the SEC in accordance with the
Securities Act of 1933.

 

“Receivable”:  any right of payment from or on behalf of any
obligor (including mortgagor), whether constituting an account, chattel paper,
instrument, general intangible or otherwise, acquired or arising from the
financing or leasing by the Company or any of its Subsidiaries of property or
services, and monies due thereunder, security interests in the property and
services financed or leased thereby and any and all other related rights.

 

“Reference Lenders”:  Citibank, JPMorgan Chase Bank, N.A. and
Deutsche Bank AG New York Branch.

 

“Register”:  as defined in subsection 9.6(b)(iv).

 

“Requirement of Law”:  as to any Person, any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

 

“S&P”:  Standard & Poor’s Ratings Services,
a division of The McGraw-Hill Companies, Inc., and its successors.

 

“Senior Credit Facility”:  the $5,500,000,000 Credit Agreement dated as
of March 23, 2006 among the Company, the subsidiaries of the Company party
thereto, Citibank, as Agent, and the Lenders referred to therein, as the same
may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

 

“Solvent” and “Solvency”:  with respect to any Person on a particular
date, that on such date (a) the fair value of the property of such Person
is greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of such Person, (b) the present fair salable value
of the assets of such Person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become
absolute and matured, (c) such Person does not intend to, and does not
believe that it will, incur debts or liabilities beyond such Person’s ability
to pay such debts and liabilities as they mature and (d) such Person is
not engaged in business or a transaction, and is not about to engage in
business or a transaction, for which such Person’s property would constitute an
unreasonably small capital.  Unless
otherwise provided under applicable law, the amount of contingent liabilities
at any time shall be computed as the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

 

12

 

“Specified Asset Categories”:  the collective reference to (i) Specified
Mortgage Loan Interests and (ii) Specified Loans and Securities.

 

“Specified Loans and Securities”:  all fixed and floating rate mortgage loan
interests and highly-rated securities which are not owned by any Specified
Subsidiary and (a) are direct obligations of any Government Sponsored
Enterprise or the United States government or any agency thereof and backed by
the full faith and credit of the United States or (b) are obligations that
any Government Sponsored Enterprise or the United States government or any
agency thereof backed by the full faith and credit of the United States has
guaranteed or committed to purchase or (c) are rated, on a long-term
basis, at least “A-” by S&P, “A3” by Moody’s or “A-” by Fitch.

 

“Specified Mortgage Loan Interests”:  all fixed and floating rate mortgage loan
interests that are not owned by any Specified Subsidiary and either (a) have
a debt service coverage ratio (as determined in compliance with the Company’s
underwriting standards as in effect on the date hereof) of at least 1.20:1.00
and a loan to value ratio (as determined in compliance with the Company’s
underwriting standards as in effect on the date hereof) of no greater than 80%
according to the loan underwriting files used by the Company to manage such
assets, and/or (b) are loan interests that have been targeted for a sale,
securitization or syndication transaction scheduled (in the ordinary course of
business consistent with past practice) for execution within 60 days.

 

“Specified Subsidiaries”:  the collective reference to (i) GMAC
Commercial Mortgage Bank, an institution chartered under the laws of the State
of Utah, (ii) Escrow Bank USA, an institution chartered under the laws of
the State of Utah, (iii) GMAC Commercial Mortgage Bank Europe plc, an
Irish licensed bank and (iv) any Subsidiary of any of the foregoing.

 

“Sub-Agent”:  any Affiliate of the Agent as may be
designated in writing to the Company.

 

“Subsidiary”:  as to any Person, any corporation, limited
liability company, partnership or other similar entity, of which at least a
majority of the outstanding stock having by the terms thereof ordinary voting
power to elect a majority of the board of directors of such corporation (irrespective
of whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time owned by such Person, or by one or more
Subsidiaries, or by such Person and one or more Subsidiaries.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Company.

 

“Surviving Indebtedness”:  Indebtedness of the Company and each of its
Subsidiaries  outstanding
immediately before and after the Closing Date and set forth on Schedule IV
hereto.

 

“Syndication Agent”:  as defined in the preamble hereto.

 

“Synthetic Debt”:  with respect to any Person, without
duplication of any clause within the definition of “Indebtedness,” all (a) obligations
of such Person under any lease that is treated as an operating lease for
financial accounting purposes and a financing lease for tax purposes (i.e., a “synthetic
lease”), (b) obligations (other than syndication proceeds in the ordinary
course) of such Person in respect of transactions entered into by such Person
(other than deposit liabilities), the proceeds from which would be reflected on
the financial statements of such Person in accordance with GAAP as cash flows
from financings at the time such transaction was entered 

 

13

 

into
(other than as a result of equity contributions or the issuance of equity
interests) and (c) obligations of such Person in respect of other
transactions entered into by such Person that are not otherwise addressed in
the definition of “Indebtedness” or in clause (a) or (b) above that
are intended to function primarily as a borrowing of funds (including, without
limitation, any minority interest transactions that function primarily as a
borrowing).

 

“Taxes”: as defined in subsection 2.15(a).

 

“Total Capitalization”:  as of any date of determination, (a) the
sum of (i) Total Consolidated Indebtedness and (ii) consolidated
shareholders’ equity of the Company and its Subsidiaries as determined in
accordance with GAAP applied on a consistent basis (it being understood and
agreed that, without limiting the generality of the foregoing, “consolidated
shareholders’ equity” as used in this definition shall include Mezzanine Equity
and 75% of the amount of any Hybrid Capital as to which equity credit is given
by Moody’s or S&P (including, for the avoidance of doubt, any back-to-back
instruments in respect thereof), in each case unless and until such time as
such equity or instruments become repayable or redeemable on a mandatory basis
in accordance with the terms thereof), less (b) the aggregate amount of
Attributed Equity of all Banking and Market Destined Assets.

 

“Total Consolidated
Indebtedness”:  as of any date of
determination, (a) the sum of (i) all indebtedness for borrowed money
of the Company and its Subsidiaries on a consolidated basis as reflected on the
consolidated balance sheet of the Company as determined in accordance with GAAP
applied on a consistent basis (but in any event excluding Mezzanine Equity and
75% of the amount of any obligations in respect of any Hybrid Capital as to
which equity credit is given by Moody’s or S&P (including, for the
avoidance of doubt, any back-to-back obligations in respect thereof), in each
case unless and until such time as such equity or instruments become repayable
or redeemable on a mandatory basis in accordance with the terms thereof) and (ii) Indebtedness
of the types described in clauses (f) (but in any event excluding
Mezzanine Equity and 75% of the amount of any obligations in respect of any
Hybrid Capital as to which equity credit is given by S&P or Moody’s
(including, for the avoidance of doubt, any back-to-back obligations in respect
thereof), in each case unless and until such time as such equity or instruments
become repayable or redeemable on a mandatory basis in accordance with the
terms thereof) and (g) of the definition thereof, and provided that in the
case of such clause (g), such Guarantees shall be included for purposes of this
definition only to the extent they are guarantees of, and only in the amount
of, any Indebtedness referred to in clauses (i) and (ii) of this
clause (a)) of the Company and its Subsidiaries on a consolidated basis, as
determined in accordance with GAAP applied on a consistent basis, less (b) the
aggregate amount of Attributed Indebtedness with respect to all Banking and
Market Destined Assets.

 

“Transferee”:  as defined in subsection 9.6(g).

 

“Treaty on European Union”:  the Treaty of Rome of March 25, 1957, as
amended by the Single European Act of 1986 and the Maastricht Treaty (which was
signed at Maastricht on February 7, 1992 and came into effect on November 1,
1993), as amended from time to time.

 

“Type”:  as to any Loan, its nature as an Base Rate
Loan or Eurodollar Loan.

 

“US Tax Compliance
Certificate”:  as defined in subsection 2.15(b).

 

“Voting Stock”:  capital stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for 

 

14

 

the election of directors (or persons performing
similar functions) of such Person, even if the right so to vote has been
suspended by the happening of such a contingency.

 

1.2.  Other
Definitional Provisions.    (a)  Unless otherwise
specified therein, all terms defined in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto.

 

(b)  As used
herein, and any certificate or other document made or delivered pursuant
hereto, accounting terms relating to the Company and its Subsidiaries not
defined in subsection 1.1 and accounting terms partly defined in subsection 1.1,
to the extent not defined, shall have the respective meanings given to them
under GAAP.

 

(c)  The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section, subsection, Schedule and Exhibit references
are to this Agreement unless otherwise specified.

 

(d)  The meanings
given to terms defined herein shall be equally applicable to both the singular
and plural forms of such terms.

 

SECTION 2.  AMOUNT
AND TERMS OF THE FACILITIES

 

2.1.  Commitments.  Subject to the terms and conditions hereof,
each Lender severally agrees to make a term loan (a “Loan”) to the
Company on the Closing Date in an aggregate amount not to exceed the amount of
the Commitment of such Lender.  Each
Borrowing shall consist of Loans made simultaneously by the Lenders ratably
according to their Commitments.  Amounts
borrowed under this subsection 2.1 and repaid or prepaid may not be
reborrowed.  The Loans shall be made in
Dollars and may  from time to time be (i) Eurodollar
Loans or (ii) Base Rate Loans, in each case as determined by the Company
and notified to the Agent in accordance with subsection 2.5.

 

2.2.  Procedure
for Borrowing.  Each Borrowing shall
be made upon irrevocable notice to the Agent given not later than (x) 12:00
Noon (New York City time) on the third  Business Day
prior to the Closing Date in the case of a Borrowing consisting of Eurodollar
Loans and (y) 10:00 A.M. (New York City time) on the Closing Date in
the case of a Borrowing consisting of Base Rate Loans, specifying, in each
case, (A) the amount to be borrowed, (B) the requested borrowing date,
(C) the Type of Loans and (D) if the borrowing is to be entirely or
partly of Eurodollar Loans, the initial Interest Period therefor.  Upon receipt of such notice from the Company,
the Agent shall promptly notify each Lender. 
Each Lender will make the amount of its pro rata share of the Borrowing
available to the Agent for the account of the Company at the Funding Office,
and at or prior to 1:00 P.M. on
the Closing Date in funds immediately available to the Agent.  The Borrowing will then immediately be made
available to the Company by the Agent crediting the account of the Company on
the books of such Funding Office with the aggregate of the amounts made
available to the Agent by the Lenders and in like funds as received by the
Agent.

 

2.3.  Termination
or Reduction of Commitments.  The
aggregate Commitments shall be automatically and permanently reduced to zero on
the date of the Borrowing.

 

2.4.  Prepayments.  (a)  Optional.  The Company may, at any time and from time to
time, prepay the Loans, in whole or in part, without premium or penalty (but
subject to the provisions of subsection 2.16), (i) in the case of Base
Rate Loans, upon irrevocable notice to the Agent not later than 11:00 A.M.
on the date of such prepayment and (ii) in the case of Eurodollar Loans,
upon at least two 

 

15

 

Business Days’ irrevocable
notice to the Agent, in each case specifying the date and amount of prepayment and
the Type or Types of the Loans being prepaid, and, if of a combination of Types,
the amount allocable to each.  Upon
receipt of any such notice the Agent shall promptly notify each Lender
thereof.  If any such notice is given,
the amount specified in such notice shall be due and payable on the date
specified therein, together with any amounts payable pursuant to subsection 2.16
and accrued interest to such date on the amount prepaid.  Amounts prepaid on account of the Loans may
not be reborrowed.  Partial prepayments
shall be in an aggregate principal amount equal to $5,000,000 or a multiple of
$1,000,000 in excess thereof.

 

(b)  Mandatory.

 

(i)  The Company shall, on the Initial Maturity Date, prepay
an aggregate amount of the Loans equal to the excess, if any, of (A) the
aggregate principal amount of the Loans then outstanding over (B) $2,625,000,000,
such amount to be applied ratably to the outstanding principal amount of the
Loans then owing to the Lenders.

 

(ii)  The Company shall, within five Business Days following
the receipt by the Company or any of its Subsidiaries of any Net Cash Proceeds
from the issuance or incurrence of any Permanent Securities, prepay the Loans
in an amount equal to such Net Cash Proceeds, such amount to be applied ratably
to the outstanding principal amount of the Loans then owing to the Lenders.

 

2.5.  Conversion
and Continuation Options .  (a)  The
Company may elect from time to time to convert Eurodollar Loans to Base Rate
Loans by giving the Agent at least one Business Day’s prior irrevocable notice
of such election; provided that any such conversion of Eurodollar Loans
may only be made on the last day of an Interest Period with respect
thereto.  The Company may elect from time
to time to convert Base Rate Loans to Eurodollar Loans by giving the Agent at
least three Business Days’ prior irrevocable notice of such election.  Any such notice of conversion to Eurodollar
Loans shall specify the length of the initial Interest Period or Interest
Periods therefor.  Upon receipt of any
such notice the Agent shall promptly notify each Lender thereof.  All or any part of outstanding Eurodollar
Loans and Base Rate Loans may be converted as provided herein; provided
that (i) no Loan may be converted into a Eurodollar Loan when any Event of
Default has occurred and is continuing and the Agent has or the Majority
Lenders have determined that such conversion is not appropriate and (ii) no
Loan may be converted into a Eurodollar Loan after the date that is one month
prior to the Maturity Date.

 

(b)  Any Eurodollar
Loans may be continued as Eurodollar Loans upon the expiration of the then
current Interest Period with respect thereto by the Company giving notice to
the Agent, in accordance with the applicable provisions of the term “Interest
Period” set forth in subsection 1.1, of the length of the next Interest
Period to be applicable to such Loans; provided that (i) no Eurodollar
Loan may be continued as such when any Event of Default has occurred and is
continuing and the Agent has or the Majority Lenders have determined that such
continuation is not appropriate and (ii) no Eurodollar Loan or may be
continued as such after the date that is one month prior to the Maturity Date
and provided, further, that if (A) the Company shall fail to
give any required notice as described above in this paragraph, such Eurodollar
Loans shall be continued on the last day of the then current Interest Period as
Eurodollar Loans with an Interest Period of one month and (B) if such
continuation is not permitted pursuant to the preceding proviso any such Eurodollar
Loans shall be automatically converted to Base Rate Loans.

 

2.6.  Minimum
Amounts of Eurodollar Borrowings; Interest Periods.  All conversions and continuations of Loans
hereunder and all selections of Interest Periods for Loans hereunder shall be
in such amounts and be made pursuant to such elections so that, after giving
effect thereto, there shall not be 

 

16

more than an aggregate of 10  Eurodollar Borrowings outstanding at any one time in
respect of the Facility.

 

2.7.  Repayment
of Loans; Evidence of Debt.  (a)  The
Company shall repay the aggregate outstanding principal amount of the Loans
made to the Company to the Agent for the ratable account of the Lenders on the Maturity
Date (or such earlier date as the Loans become due and payable pursuant to Section 7).

 

(b)  The Company
hereby further agrees to pay interest in immediately available funds at the
office of the Agent on the unpaid principal amount of each Loan made to the
Company from time to time from the date hereof until payment in full thereof at
the rates per annum, and on the dates, set forth in subsection 2.8.

 

(c)  Each Lender
shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Company to the appropriate Funding Office of
such Lender resulting from each Loan made by such Funding Office of such Lender
from time to time, including the amounts of principal and interest payable and
paid to such Funding Office of such Lender from time to time under this
Agreement.

 

(d)  The Agent
shall maintain the Register pursuant to subsection 9.6(b), and a
subaccount for each Lender, in which Register and subaccounts (taken together)
shall be recorded (i) the amount of each Loan made hereunder, the Type of
each Loan made and the Interest Period applicable thereto, (ii) the amount
of any principal or interest due and payable or to become due and payable from
the Company to each Lender hereunder and (iii) the amount of any sum
received by the Agent hereunder from the Company and each Lender’s share
thereof.

 

(e)  The entries
made in the Register and accounts maintained pursuant to paragraphs (c) and
(d) of this subsection 2.7 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Company therein recorded; provided, however,
that the failure of any Lender or the Agent to maintain such account, such
Register or such subaccount, as applicable, or any error therein, shall not in
any manner affect the obligation of the Company to repay (with applicable
interest) the Loans made to the Company in accordance with the terms of this
Agreement.

 

2.8.  Interest
Rates and Payment Dates.  (a)  Each
Base Rate Loan shall bear interest at a rate per annum equal at all times to
the Base Rate.

 

(b)  Subject to
subsection 2.14(c), the Loans comprising each Eurodollar Borrowing shall
bear interest at a rate per annum equal to the Eurodollar Rate for the Interest
Period in effect for such Eurodollar Borrowing plus the Applicable
Margin.

 

(c)  Interest
shall be payable in arrears on each Interest Payment Date; provided that
interest accruing pursuant to paragraph (e) of this subsection 2.8
shall be payable from time to time on demand.

 

(d)  The
“Applicable Margin” with respect to each Eurodollar Loan shall be the
applicable percentage amount set forth in the table below based upon the
applicable rating of the Index Debt on such date:

 

17

	
   

  	
   

  	
  Level 1

  Index Debt 

  rated:

  	
   

  	
  Level 2

  Index Debt 

  rated:

  	
   

  	
  Level 3

  Index Debt

  rated:

  	
   

  	
  Level 4

  Index Debt

  rated:

  
	
  S&P

  	
   

  	
  BBB+ or

  better

  	
   

  	
  BBB

  	
   

  	
  BBB-

  	
   

  	
  Lower than

  Level 3

  
	
  Fitch

  	
   

  	
  BBB+ or

  better

  	
   

  	
  BBB

  	
   

  	
  BBB-

  	
   

  	
  Lower than

  Level 3

  
	
  Moody’s

  	
   

  	
  Baa1 or

  better

  	
   

  	
  Baa2

  	
   

  	
  Baa3

  	
   

  	
  Lower than

  Level 3

  
	
  Applicable Margin

  	
   

  	
  0.500%

  	
   

  	
  0.575%

  	
   

  	
  0.650%

  	
   

  	
  0.825%

  

 

 

In the event that, and from
and after the time and for so long as (but only for so long as), the ratings
established by S&P, Fitch and Moody’s are split, the applicable Level shall
be determined exclusively by reference to the highest of the available ratings
except that, in the event that the lowest of such ratings is more than one
level below the highest of such ratings, then pricing will be determined based
on the lower of the two highest ratings. 
If S& P, Fitch or Moody’s shall cease to issue ratings of debt
securities generally, then the Agent and the Company shall negotiate in good
faith to agree upon a substitute rating agency (and to correlate the system of
ratings of such substitute rating agency with that of the rating agency for
which it is substituting) and (i) until such substitute rating agency is
agreed upon, the foregoing test may be satisfied on the basis of the rating
assigned by the other such rating agencies and (ii) after such substitute
rating agency is agreed upon, the foregoing test may be satisfied on the basis
of the rating assigned by the other rating agencies and such substitute rating
agency.

 

(e)  If all or a
portion of (i) the principal amount of any Loan, (ii) any interest
payable thereon or (iii) any facility fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum which is the rate that would otherwise be applicable thereto pursuant
to the foregoing provisions of this subsection 2.8 plus 2.00% from the
date of such non-payment until such amount is paid in full (as well after as
before judgment).  For purposes of this
Agreement, principal shall be “overdue” only if not paid in accordance with the
provisions of subsection 2.8.

 

2.9.  Facility
Fee.  The Company shall pay to the
Agent, for the account of each Lender, a facility fee at the rate per annum
equal to (a) for each day that the applicable Level of the Company is
Level 1, 0.100%, (b) for each day that the applicable Level of the Company
is Level 2, 0.125%, (c) for each day that the applicable Level of the
Company is Level 3, 0.150% and (d) for each day that the applicable Level
of the Company is Level 4, 0.175%, in each case of the the aggregate
Commitments of (or if the Commitments have been terminated, the aggregate
outstanding principal of the Loans made by) such Lender, in each case in effect
or outstanding, as applicable, on such day. 
On the first Business Day following the last day of each fiscal quarter
of the Company and on the Maturity Date (or, if earlier, on the date upon which
both the Commitments are terminated and the Loans are paid in full), the
Company shall pay to the Agent, for the ratable benefit of each Lender, the
portion of such facility fee which accrued during the fiscal quarter most
recently ended (or, in the case of the payment due on the Maturity Date, the
portion thereof ending on such date).

 

2.10.  Computation
of Interest and Fees.  (a)  Interest
on all Loans shall be computed on the basis of the actual number of days
elapsed over a year of 360 days or, in the case of Base Rate Loans,

 

18

a year of 365 or 366 days as
appropriate (in each case including the first day but excluding the last
day).  Each determination of an interest
rate by the Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Company and the Lenders in the absence of
manifest error.  All fees shall be
computed on the basis of a year composed of twelve 30-day months.  The Agent shall, at any time and from time to
time upon request of the Company, deliver to the Company a statement showing
the quotations used by the Agent in determining any interest rate applicable to
the Loans pursuant to this Agreement.

 

(b)  If any
Reference Lender shall for any reason no longer have a Commitment or a Loan
outstanding, such Reference Lender shall thereupon cease to be a Reference
Lender, and if, as a result thereof, there shall only be one Reference Lender
remaining, the Company and the Agent (after consultation with the Lenders)
shall, by notice to the Lenders, designate another Lender as a Reference Lender
so that there shall at all times be at least two Reference Lenders.

 

(c)  Each
Reference Lender shall use its best efforts to furnish quotations of rates to
the Agent as contemplated hereby.  If any
of the Reference Lenders shall be unable or shall otherwise fail to supply such
rates to the Agent upon its request, the rate of interest shall, subject to the
provisions of subsection 2.11, be determined on the basis of the
quotations of the remaining Reference Lenders.

 

2.11.  Inability
to Determine Interest Rate.  If the Eurodollar
Rate cannot be determined by the Agent in the manner specified in the
definition of the term “Eurodollar Rate” contained in subsection 1.1 of
this Agreement, the Agent shall give telecopy or telephonic notice thereof to
the Company and the Lenders as soon as practicable thereafter.  Until such time as the Eurodollar Rate can be
determined by the Agent in the manner specified in the definition of such term
contained in said subsection 1.1, no further Eurodollar Loans shall be
continued as such at the end of the then current Interest Period or (other than
any Eurodollar Loans previously requested and with respect to which the Eurodollar
Rate previously was determined) shall be made, nor shall the Company have the
right to convert Base Rate Loans to Eurodollar Loans.

 

2.12.  Pro
Rata Treatment and Payments.  (a)  Each
Borrowing from the Lenders hereunder and (except as provided in subsection 2.17(c))
any reduction of the Commitments of the Lenders shall be made pro rata
according to the respective Commitments of the Lenders under the Facility.  Each payment (including each prepayment) by the
Company on account of principal of and interest on the Loans shall be made pro
rata according to the respective outstanding principal amounts of the Loans made
to the Company then held by the Lenders.

 

(b)  All payments
(including prepayments) to be made by the Company hereunder, whether on account
of principal, interest, fees or otherwise, shall be made without set-off or
counterclaim.  All payments (including
prepayments) in respect of Loans shall be made in immediately available funds
at the Payment Office, and at or prior to 12:00  Noon (New York city time), on the due date thereof.  The Agent shall distribute such payments to
the Lenders promptly upon receipt in like funds as received.  If any payment hereunder (other than payments
on the Eurodollar Loans) becomes due and payable on a day other than a Business
Day, such payment shall be extended to the next succeeding Business Day, and,
with respect to payments of principal, interest thereon shall be payable at the
then applicable rate during such extension. 
If any payment on a Eurodollar Loan becomes due and payable on a day
other than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day unless the result of such extension would be to extend
such payment into another calendar month, in which event such payment shall be
made on the immediately preceding Business Day.

 

2.13.  Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful 

 

19

for any Lender to make or
maintain Eurodollar Loans as contemplated by this Agreement, such Lender shall
give notice thereof to the Agent and the Company describing the relevant
provisions of such Requirement of Law (and, if the Company shall so request,
provide the Company with a memorandum or opinion of counsel of recognized
standing (as selected by such Lender) as to such illegality), following which (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue Eurodollar
Loans as such and convert Base Rate Loans to Eurodollar Loans shall forthwith
be canceled and (b) such Lender’s Loans then outstanding as Eurodollar
Loans, if any, shall be converted automatically to Base Rate Loans (A) on
the respective last days of the then current Interest Periods with respect to
such Loans or (B) within such earlier period as required by law.  If any such conversion of a Eurodollar Loan
occurs on a day which is not the last day of the then current Interest Period
with respect thereto, the Company shall pay to such Lender such amounts, if
any, as may be required pursuant to subsection 2.16.

 

2.14.  Increased
Costs.  Except with respect to Taxes,
which are governed exclusively by subsection 2.15 of this Agreement, (a)  If
there shall be (i) any increase in the cost to any Lender of agreeing to
make or making, funding or maintaining any Loans or (ii) any reduction in
any amount receivable in respect thereof, and, in each case, such increased
cost or reduced amount receivable is due to either:

 

(x)  the
introduction of or any change in or in the interpretation of any law or
regulation after the date hereof; or

 

(y)  the
compliance with any guideline or request made after the date hereof from any
central bank or other Governmental Authority (whether or not having the force
of law),

 

then (subject to the
provisions of subsection 2.16) the Company shall from time to time, upon
written demand by such Lender pay such Lender additional amounts sufficient to
compensate such Lender for such increased cost or reduced amount receivable.

 

(b)  If any Lender
shall have reasonably determined that (i) the applicability of any law,
rule, regulation or guideline adopted after the date hereof pursuant to or
arising out of the July 1988 paper of the Basle Committee on Banking
Regulations and Supervisory Practices entitled “International Convergence of
Capital Measurement and Capital Standards,” or (ii) the adoption after the
date hereof of any other law, rule, regulation or guideline regarding capital
adequacy affecting such Lender, or (iii) any change arising after the date
hereof in the foregoing or in the interpretation or administration of any of
the foregoing by any Governmental Authority, central bank or comparable agency
charged with the interpretation or administration thereof, or (iv) compliance
by such Lender (or any Funding Office of such Lender), or any holding company
for such Lender which is subject to any of the capital requirements described
above, with any request or directive of general application issued after the
date hereof regarding capital adequacy (whether or not having the force of law)
of any such authority, central bank or comparable agency, has or would have the
effect of reducing the rate of return on such Lender’s capital or on the
capital of any such holding company as a direct consequence of such Lender’s
obligations hereunder to a level below that which such Lender or any such
holding company could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s policies and the policies of such
holding company with respect to capital adequacy) by an amount deemed by such
Lender to be material, then (subject to the provisions of subsection 2.16)
from time to time such Lender may request the Company to pay to such Lender
such additional amounts as will compensate such Lender or any such holding
company for any such reduction suffered, net of the savings (if any) which may
be reasonably projected to be associated with such increased capital
requirement.  Any certificate as to such
amounts which is delivered pursuant to subsection 2.16(a) shall, in
addition to any items required by subsection 2.16(a), include the
calculation of the savings (if any) which may be reasonably projected to be

 

20

associated with such increased capital
requirement; provided that in no event shall any Lender be obligated to
pay or refund any amounts to Company on account of such savings.

 

(c)  In the event
that any Governmental Authority shall impose any Eurodollar Reserve
Requirements which increase the cost to any Lender of making or maintaining Eurodollar
Loans, then (subject to the provisions of subsection 2.16) the Company
shall thereafter pay in respect of the Eurodollar Loans of such Lender a rate
of interest based upon the Eurodollar Reserve Rate (rather than upon the Eurodollar
Rate).  From and after the delivery to
the Company of the certificate required by subsection 2.16(a), all
references contained in this Agreement to the Eurodollar Rate shall be deemed
to be references to the Eurodollar Reserve Rate with respect to each such
affected Lender.

 

2.15.  Taxes.  (a)  All payments made by the
Company under this Agreement and any other Loan Document shall be made free and
clear of, and without deduction or withholding for or on account of, any
present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings (collectively, “Taxes”), now
or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes or any
other tax based upon net income imposed on the Agent or any Lender as a result
of a present or former connection between the Agent or such Lender and the
jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the Agent or such Lender having executed,
delivered or performed its obligations or received a payment under, or
enforced, this Agreement) or any other Loan Document.  If any such non-excluded taxes, levies,
imposts, duties, charges, fees deductions or withholdings (“Non-Excluded
Taxes”) are required to be withheld from any amounts payable to the Agent
or any Lender hereunder, the amounts so payable to the Agent or such Lender
shall be increased to the extent necessary to yield to the Agent or such Lender
(after payment of all Non-Excluded Taxes) a net amount equal to the amount it
would have received had no such deduction or withholding been made.  Notwithstanding the foregoing, the Company
shall not be required to increase any such amounts payable to any Lender with
respect to any Non-Excluded Taxes (i) that are attributable to such Lender’s
failure to comply with the requirements of paragraph (b) of this subsection 2.15
or (ii) that are withholding taxes applicable to such Lender at the time
such Lender becomes a party to this Agreement, except to the extent that such
Lender’s assignor (if any) was entitled, at the time of assignment, to receive
additional amounts from the Company with respect to such Non-Excluded Taxes
pursuant to this paragraph.  Whenever any
Non-Excluded Taxes are payable by the Company, as promptly as possible
thereafter, the Company shall send to the Agent for its own account or for the
account of such Lender, as the case may be, a certified copy of an original
official receipt received by the Company showing payment thereof.  If the Company fails to pay any Non-Excluded
Taxes when due to the appropriate taxing authority or fails to remit to the
Agent the required receipts or other required documentary evidence, the Company
shall indemnify the Agent, each Sub-Agent and the Lenders for any incremental
taxes, interest or penalties that may become payable by the Agent or any Lender
as a result of any such failure.  The
agreements in this subsection 2.15 shall survive the termination of this
Agreement and the payment of all other amounts payable hereunder.

 

(b)  Each Lender
that is not a “U.S. Person” as defined in Section 7701(a)(30) of the Code
(“Non-US Lender”) shall:

 

(X)(i)  on or before the date such
Non-US Lender becomes a Lender or a Participant under this Agreement, deliver
to the Company and the Agent two duly completed copies of United States
Internal Revenue Service Form W-8BEN or W-8ECI, or successor applicable
form, as the case may be, certifying that it is entitled to receive payments
under this Agreement without deduction, withholding or backup withholding of
any United States federal income taxes;

 

21

(ii)  if, and to the extent, such
Lender is legally entitled to do so, deliver to the Company and the Agent two
further copies of any such form or certification on or before the date that any
such form or certification expires or becomes obsolete and after the occurrence
of any event requiring a change in the most recent form previously delivered by
it to the Company; and

 

(iii)  if, and to the extent, such
Lender is legally entitled to do so, obtain such extensions of time for filing
and completing such forms or certifications as may reasonably be requested by
the Company or the Agent;

 

(Y)  in the case
of any such Non-US Lender claiming exception from U.S. federal withholding tax
under Section 871(h) or 881(c) of the Code with respect to
payment of “portfolio interest”, deliver on or before the date such Non-US
Lender becomes a Lender or a Participant under this Agreement,  (A) a certificate substantially in the
form of Exhibit E (any such certificate a “US Tax Compliance
Certificate”), (B) two accurate and complete original signed copies of
Internal Revenue Service Form W-8BEN, or successor applicable form,
certifying to such Lender’s legal entitlement at the date of such certificate
to a complete exemption from US withholding tax, (C) two further copies of
such form and certification (I) on or before the date it expires or becomes
obsolete and (II) if and to the extent such Non-US Lender is then legally able
to provide such form or certification, after the occurrence of any event
requiring a change in the most recent form previously delivered by it to the Company,
and, (D) if and to the extent such Non-US Lender is then legally able to
do so, if necessary, obtain any extensions of time reasonably requested by the
Company or the Agent for filing and completing such forms, and (iii) agree,
if and to the extent such Non-US Lender is then legally entitled to do so, upon
reasonable request by the Company, to provide to the Company (for the benefit
of the Company and the Agent) such other forms as may be reasonably required in
order to establish the legal entitlement of such Lender to a complete exemption
from or reduced rate of withholding with respect to payments under this
Agreement and any Notes; or

 

(Z)  in the case
of any Lender that is entitled to an exemption from or reduction of non-U.S.
withholding tax under the law of the jurisdiction in which the Company is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement, deliver to the Company, at the time or times
prescribed by applicable law or reasonably requested by the Company, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate, provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.

 

unless in any such case an
event (including, without limitation, any change in treaty, law or regulation)
has occurred prior to the date on which any such delivery would otherwise be
required which renders all such forms inapplicable or which would prevent such
Lender from duly completing and delivering any such form with respect to it and
such Lender so advises the Company and the Agent.  Each Non-U.S. Lender that is an Assignee or
Participant hereunder pursuant to subsection 9.6 shall, upon the
effectiveness of the related transfer, be required to provide all of the forms
and statements required pursuant to this subsection 2.15; provided
that in the case of a Participant such Participant shall furnish all such
required forms and statements, documentation or certifications to the Lender
from which the related participation shall have been purchased, and such Lender
shall in turn furnish all such required forms (including, without limitation,
Internal Revenue Service Form W-8IMY), documentation and certifications to
the Company and the Agent.  Any Lender or
Participant that is a “United States person” (within the meaning of Code section 7701(a)(30))
but is not incorporated under the laws of the United States or a state thereof
shall furnish the Company and the Agent with a Form W-9 or successor form 

 

22

thereto, certifying an
exemption from backup withholding in respect of payments hereunder, if it is
legally entitled to do so.

 

(c)  If and to the
extent that a Lender, in its sole discretion (exercised in good faith),
determines that it has received or been granted a credit against, a relief from,
a remission of, or a repayment of, any Non-Excluded Tax, in respect of which it
has received additional payment under subsection 2.15(a) of this
Agreement, then such Lender shall pay to the the Company the amount of such
credit, relief, remission or repayment so determined by such Lender, in its
sole discretion (exercised in good faith), attributable to such deduction or
withholding of Non-Excluded Tax; provided that the Lender shall not be
obligated to make any payment under this paragraph in respect of such credit,
relief, refund, remission or repayment until the Lender, in its sole judgment
(exercised in good faith), is satisfied that its tax affairs for the tax year
in respect of which such credit, relief, remission or repayment was obtained
have been finally settled.

 

2.16.  Indemnity.  If (a) any payment of principal of any
Eurocurrency Loan is made by the Company to or for the account of a Lender
other than on the last day of the Interest Period for such Eurocurrency Loan as
a result of a payment or conversion pursuant to subsection 2.4, 2.5, 2.7,
or 2.14, as a result of acceleration of the maturity of the Loans pursuant to
subsection 7 or for any other reason, (b) any Borrowing of
Eurocurrency Loans is not made as a result of a withdrawn notice of borrowing, (c) any
Base Rate Loan is not converted into a Eurocurrency Loan as a result of a
withdrawn notice of conversion or continuation, (d) any Eurocurrency Loan
is not continued as a Eurocurrency Loan as a result of a withdrawn notice of
conversion or continuation or (f) any prepayment of principal of any
Eurocurrency Loan is not made as a result of a withdrawn notice of prepayment
pursuant to subsection 2.4, the Borrower shall, after receipt of a written
request by such Lender (which request shall set forth in reasonable detail the
basis for requesting such amount), pay to the Agent for the account of such
Lender any amounts required to compensate such Lender for any additional
losses, costs or expenses that such Lender may reasonably incur as a result of
such payment, failure to convert, failure to continue or failure to prepay,
including any loss, cost or expense (excluding loss of anticipated profits)
actually incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by any Lender to fund or maintain such Eurocurrency Loan.

 

2.17.  Notice
of Amounts Payable; Relocation of Funding Office; Mandatory Assignment.  (a)  In the event that any Lender
becomes aware that any amounts are or will be owed to it pursuant to subsection 2.13,
2.14, 2.15(a) or 2.16, then it shall promptly notify the Company thereof
and, as soon as possible thereafter, such Lender shall submit to the Company a
certificate indicating the amount owing to it, the calculation thereof and a
description in reasonable detail of the circumstances giving rise to such
amount.  The amounts set forth in such
certificate shall be prima facie evidence of the obligations of the Company
hereunder; provided, however, that the failure of the Company to
pay any amount owing to any Lender pursuant to subsection 2.13, 2.14, 2.15(a) or
2.16 shall not be deemed to constitute a Default or an Event of Default
hereunder to the extent that the Company is contesting in good faith its
obligation to pay such amount by ongoing discussions diligently pursued with
such Lender or by appropriate proceedings.

 

(b)  If a Lender
claims any additional amounts payable pursuant to subsection 2.13 or 2.14,
it shall use its reasonable efforts (consistent with legal and regulatory
restrictions) to avoid the need for paying such additional amounts, including
changing the jurisdiction of its applicable Funding Office, provided
that the taking of any such action would not, in the reasonable judgment of such
Lender, be disadvantageous to such Lender.

 

23

(c)  In the event that
any Lender delivers to the Company a certificate in accordance with subsection 2.17(a) (other
than a certificate as to amounts payable pursuant to subsection 2.16), or the
Company is required to pay any additional amounts or other payments in
accordance with subsection 2.13, 2.14 or 2.15(a), the Company may, at its
own expense and in its sole discretion, (i) require such Lender to
transfer or assign, in whole or in part, without recourse (in accordance with
subsection 9.6), all or part of its interests, rights and obligations
under this Agreement to another Person (provided that the Company, with
the full cooperation of such Lender, can identify a Person who is ready,
willing and able to be an Assignee with respect to thereto) which shall assume
such assigned obligations (which Assignee may be another Lender, if such
Assignee Lender accepts such assignment) or (ii) during such time as no
Default or Event of Default has occurred and is continuing, prepay all
outstanding Loans of such Lender; provided that (x) the Company or the
Assignee, as the case may be, shall have paid to such Lender in immediately
available funds the principal of and interest accrued to the date of such
payment on the Loans made by it hereunder and (subject to subsection 2.16)
all other amounts owed to it hereunder and (y) such assignment or the
prepayment of Loans is not prohibited by any law, rule or regulation or
order of any court or Governmental Authority.

 

SECTION 3.  REPRESENTATIONS
AND WARRANTIES

 

To induce the Agent and the
Lenders to enter into this Agreement and to make the Loans, the Company hereby
represents and warrants to the Agent and each Lender that:

 

3.1.  Financial
Condition.  The Company has heretofore
furnished to each Lender a copy of its consolidated financial statements for
its fiscal year ended December 31, 2004 and for its fiscal quarters ended March 31,
2005, June 30, 2005 and September 30, 2005.  Such financial statements present fairly the financial
condition and results of operations of the Company and its Subsidiaries as of
such dates in accordance with GAAP.

 

3.2.  No
Change .  As of the date hereof,
since March 31, 2005, there has been no development or event which has had
a Closing Date Material Adverse Effect.

 

3.3.  Corporate
Existence.  The Company (a) is duly organized,
validly existing and in good standing under the laws of the State of Nevada, (b) has
the power and authority under its constituent documents, and the legal right,
to own and operate its property, to lease the property it operates as lessee
and to conduct the business in which it is currently engaged and (c) is
duly qualified as a foreign corporation and in good standing under the laws of
each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification, except to the extent that
all failures to be duly qualified and in good standing could not, in the
aggregate, have a Material Adverse Effect.

 

3.4.  Corporate
Power; Authorization; Enforceable Obligations.  The Company has the corporate power and
authority, and the legal right, to make, deliver and perform its obligations
under this Agreement and to borrow hereunder and has taken all necessary
corporate action to authorize its Borrowings on the terms and conditions of
this Agreement and to authorize the execution, delivery and performance of this
Agreement.  No consent or authorization
of any Governmental Authority or any other Person is required in connection with
its Borrowings hereunder or with its execution, delivery and performance of
this Agreement or the validity or enforceability of this Agreement against it.  This Agreement has been duly executed and
delivered on behalf of the Company.  This
Agreement constitutes a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

24

3.5.  No
Legal Bar.  The execution, delivery and performance of
this Agreement, its Borrowings hereunder and the use of the proceeds thereof
will not violate any Requirement of Law or Contractual Obligation of the
Company and will not result in, or require, the creation or imposition of any
Lien on any of its properties or revenues pursuant to any such Requirement of
Law or Contractual Obligation, except to the extent that all such violations
and creation or imposition of Liens could not, in the aggregate, have a
Material Adverse Effect.

 

3.6.  No
Material Litigation.  No litigation,
investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of the Company, threatened by or
against the Company or any of its Subsidiaries or against any of its or their
respective properties or revenues as of the Closing Date (a) with respect
to this Agreement or any of the actions contemplated hereby, or (b) which
involves a probable risk of an adverse decision which would materially restrict
the ability of the Company to comply with its obligations under this Agreement.

 

3.7.  Federal
Regulations.  The proceeds of any
Loans will not be used for “buying,” “purchasing” or “carrying” any “margin
stock” in violation of (within the respective meanings of each of the quoted
terms under) Regulation U of the Board of Governors of the Federal Reserve
System as now and from time to time hereafter in effect or for any purpose
which violates the provisions of the Regulations of such Board of Governors.

 

3.8.  Investment
Company Act.  The Company is not an “investment
company”, or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended.

 

3.9.  ERISA.  The Company and its Subsidiaries are in
compliance with all material provisions of ERISA, except to the extent that all
failures to be in compliance could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

3.10.  No
Material Misstatements.  No report,
financial statement or other written information furnished by or on behalf of the
Company to the Agent or any Lender pursuant to subsection 3.1 or subsection 5.1(a) contains
or will contain any material misstatement of fact or omits or will omit to
state any material fact necessary to make the statements therein, in light of
the circumstances under which they were, are or will be made, not misleading,
except to the extent that the facts (whether misstated or omitted) do not
result in a Material Adverse Effect.

 

3.11.  Solvency.  As of the date hereof, the Company is,
individually and together with its Subsidiaries, Solvent.

 

3.12.  Purpose
of Loans.  The proceeds of the Loans shall be used by the
Company (a) to retire the Company’s Existing Indebtedness (other than
Surviving Indebtedness), (b) to pay costs and expenses incurred in
connection therewith and with the Acquisition and (c) for its general
corporate purposes.

 

SECTION 4.  CONDITIONS
PRECEDENT

 

4.1.  Conditions
to Initial Loans.  The agreement of each Lender to make its Loan
hereunder is subject to the satisfaction, prior to or concurrently with the
making of such Loan, of the following conditions precedent:

 

(a)  Bridge
Loan Agreement.  The Agent shall have
received this Agreement, executed and delivered (including, without limitation,
by way of a telecopied signature page or a signature

 

25

page in electronic format acceptable to
the Agent) by a duly authorized officer of the Company as of the Closing Date and
each Lender.

 

(b)  Guaranty.  The Agent shall have received the Guaranty,
executed and delivered (including, without limitation, by way of a telecopied
signature page) by each Guarantor listed on Schedule II.

 

(c)  Secretary’s
Certificate.  The Agent shall have
received a certificate of the Secretary or Assistant Secretary of the Company,
in form and substance satisfactory to the Agent, which certificate shall (i) certify
as to the incumbency and signature of the officers of the Company executing
this Agreement (with the President, a Vice President, the Secretary or
Assistant Secretary of the Company attesting to the incumbency and signature of
the Secretary or Assistant Secretary providing such certificate), (ii) have
attached to it a true, complete and correct copy of each of the certificate of
incorporation and by-laws of the Company, (iii) have attached to it a true
and correct copy of the resolutions of the Board of Directors of the Company,
which resolutions shall authorize the execution, delivery and performance of
this Agreement and the Borrowings by the Company hereunder and (iv) certify
that, as of the date of such certificate (which shall not be earlier than the
date hereof), none of such certificate of incorporation, by-laws or resolutions
shall have been amended, supplemented, modified, revoked or rescinded.

 

(d)  Fees.  The Company
shall have paid all fees required to be paid pursuant to the terms of the Fee
Letter.

 

(e)  Legal Opinions. 
The Agent shall have received (i) the executed legal opinion of Lionel Sawyer &
Collins, Nevada counsel to the
Company, substantially in the form of Exhibit B-1 and (ii) the
executed legal opinion of Simpson, Thacher & Bartlett LLP, counsel to
the Company, substantially in the form of Exhibit B-2.  The Company hereby instructs Lionel Sawyer &
Collins and Simpson, Thacher &
Bartlett LLP to deliver their opinions for the benefit of the Agent and each of
the Lenders.

 

(f)  Debt Ratings. 
The Company shall have received long-term senior unsecured debt ratings
for the Senior Credit Facility and the Facility of not less than BBB- from
S&P, Baa3 from Moody’s and BBB- from Fitch, in each case with at least
stable outlook.

 

(g)  Consummation of Acquisition.  The Acquisition shall have been consummated
in accordance with the terms of the Purchase Agreement, without any amendment
or modification that is material to the interests of the Lenders and to which
any two Arrangers have reasonably objected.

 

(h)  Senior Credit Facilities.  The initial funding under the Senior Credit Facility
shall have been consummated.

 

(i)  Issuance of Hybrid Capital.  The Hybrid Capital shall have been issued to
GMAC.

 

(j)  Payment of Existing Indebtedness.  The Agent shall be satisfied that all
Existing Indebtedness, other than Surviving Indebtedness, has been prepaid,
redeemed or defeased in full or otherwise satisfied and extinguished and all
commitments relating thereto terminated.

 

(k)  The Agent shall have received a notice of borrowing as
required by subsection 2.2.

 

26

(l)  Each of the representations and warranties made by the
Company in or pursuant to this Agreement shall be true and correct on and as of
such date as if made on and as of such date.

 

(m)  No Default or Event of Default shall have occurred and
be continuing on such date or after giving effect to the making of the Loans.

 

The Agent shall notify the
Company and each Lender promptly after the satisfaction of the foregoing
conditions.

 

4.2.  Conditions to Maturity Extension.   Upon written request of the Company to the
Agent no later than 5 Business Days prior to the Initial Maturity Date, the
Maturity Date may be extended for one additional twelve-month period (as so
extended, the “Extended Maturity Date”) subject to satisfaction of the
following conditions:

 

(a)  Representations and Warranties.  Each of the representations and warranties
made by the Company in or pursuant to this Agreement shall be true and correct
on and as of the Initial Maturity Date such date as if made on and as of such
date, other than any such representations or warranties that, by their terms,
refer to a specific date other than the Initial Maturity Date, in which case as
of such specific date.

 

(b)  No Default. 
No Default or Event of Default shall have occurred and be continuing on the
Initial Maturity Date.

 

SECTION 5.  AFFIRMATIVE
COVENANTS

 

The Company hereby agrees
that, so long as the Commitments remain in effect, or any amount is owing to
any Lender or the Agent hereunder, the Company shall:

 

5.1.  Financial
Statements.  Furnish to each Lender:

 

(a)  as soon as available, but in any event within
110 days after the end of each fiscal year of the Company, a copy of the audited
consolidated balance sheet of the Company and its consolidated Subsidiaries as
at the end of such year and the related audited consolidated statements of
income and retained earnings and of cash flows for such year, setting forth in
each case in comparative form the figures for the previous year; and

 

(b)  as soon as available, but in any event not later than 60
days after the end of each of the first three quarterly periods of each fiscal
year of the Company, the unaudited consolidated balance sheet of the Company
and its consolidated Subsidiaries as at the end of such quarter and the related
unaudited consolidated statements of income and retained earnings and of cash
flows of the Company and its consolidated Subsidiaries for such quarter and the
portion of the fiscal year through the end of such quarter, setting forth in
each case in comparative form the figures for the previous year;

 

all such financial
statements shall be complete and correct in all material respects and shall be
prepared in accordance with GAAP (it being understood that in the event of any
change in GAAP or in the interpretation or application thereof, any financial
statement delivered hereunder prior to such change shall be deemed to have been
prepared in accordance with GAAP for purposes of and in accordance with the
requirements of this Agreement so long as such financial statements were
prepared in accordance with GAAP as in effect on the date such financial
statements were delivered and in accordance with the historical application
thereof by the Company, without giving effect to any changes thereto or in the 

 

27

 

interpretation or
application thereof after such date) applied consistently throughout the
periods reflected therein and with prior periods (except as approved by such
accountants or officer, as the case may be, and disclosed therein).

 

5.2.  Certificates;
Other Information.  Furnish to:

 

(a)  each Lender, concurrently with the delivery of the
financial statements referred to in subsection 5.1(a), a certificate of PricewaterhouseCoopers
LLP or other independent
certified public accountants of nationally recognized standing stating that, in
making the examination necessary therefor, nothing came to their attention that
caused them to believe that the Company was, as at the date at which such
financial statements were made, in breach of subsection 6.1;

 

(b)  each Lender, concurrently with the delivery of the
financial statements referred to in subsections 5.1(a) and 5.1(b), a
certificate of the chief financial officer of the Company (i) stating
that, to the best of the chief financial officer’s knowledge, (A) such
financial statements present fairly the financial condition and results of
operations of the Company and its Subsidiaries for the period referred to
therein (subject, in the case of interim statements, to normal year-end audit
adjustments), and (B) during such period the Company has performed all of
its covenants and other agreements contained in this Agreement to be performed
by it, and that no Default or Event of Default has occurred, except as
specified in such certificate and (ii) setting forth in reasonable detail
the calculations required to establish whether the Company was in compliance
with the provisions of subsection 6.1 on the date of such financial
statements; and

 

(c)  each Lender, within 30 days after the same become
public, copies of all financial statements and reports which the Company may
make to, or file with, the Securities and Exchange Commission or any successor
or analogous Governmental Authority; provided, that such financial
statements and reports shall be deemed delivered to each Lender upon filing
with the Securities and Exchange Commission.

 

5.3.  Notices. 
Promptly give notice to the Agent and each Lender of the occurrence of
any Default or Event of Default, accompanied by a statement of a Financial
Officer setting forth details of the occurrence referred to therein and stating
what action the Company proposes to take with respect thereto.

 

5.4.  Conduct
of Business and Maintenance of Existence. 
Continue to engage in its principal line of business as now conducted by
it and preserve, renew and keep in full force and effect its corporate
existence and take all reasonable action to maintain all rights, privileges and
franchises necessary or desirable in the normal conduct of its principal line
of business except as otherwise permitted pursuant to subsection 6.2 or to
the extent that failure to do so would not have a Material Adverse Effect.

 

5.5.  Compliance
with Laws, Etc.  Comply, and cause
each of its Subsidiaries to comply with all applicable laws, rules, regulations
and orders (including as to environmental matters), such compliance to include,
without limitation, compliance with ERISA, except in each case to the extent
that failure to do so would not have a Material Adverse Effect.

 

5.6.  Payment
of Taxes, Etc.  Except to the extent
that failure to do so would not have a Material Adverse Effect, pay and
discharge, and cause each of its Subsidiaries to pay and discharge, before the
same shall become delinquent, all taxes, assessments and governmental charges
or levies imposed upon it or upon its property; provided, however,
that neither the Company nor any of its Subsidiaries shall be required to pay
or discharge any such tax, assessment, charge or claim that is being 

 

28

contested in good faith and by
proper proceedings and as to which appropriate reserves are being maintained.

 

5.7.  Visitation
Rights.  Once per calendar year (or,
during the continuance of an Event of Default, at any reasonable time and from
time to time), permit the Agent or any agents or representatives thereof to
examine and make copies of and abstracts from the records and books of account
of, and visit the properties of, the Company and any of its Subsidiaries, and
to discuss the affairs, finances and accounts of the Company and any of its
Subsidiaries with any of their officers or directors and with their independent
certified public accountants.

 

5.8.  Keeping
of Books.  Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business of the
Company and each such Subsidiary in accordance with generally accepted
accounting principles in effect from time to time, except to the extent that
failure to do so would not have a Material Adverse Effect.

 

5.9.  Maintenance
of Properties, Etc.  Except to the extent that
failure to do so would not have a Material Adverse Effect, maintain and
preserve, and cause each of its Subsidiaries to maintain and preserve, all of
its properties that are used or useful in the conduct of its business in good
working order and condition, ordinary wear and tear excepted.

 

5.10.  Maintenance
of Insurance.  Except to the extent that failure to do so
would not have a Material Adverse Effect, maintain, and cause each of its
Subsidiaries to maintain, insurance with responsible and reputable insurance
companies or associations in such amounts and covering such risks as is usually
carried by companies engaged in similar businesses and owning similar
properties in the same general areas in which the Company or such Subsidiary
operates.

 

5.11.  Transactions
with Affiliates.  Conduct, and cause each of its Subsidiaries
to conduct, all transactions otherwise permitted under this Agreement with any
of their Affiliates (other than the Company or any Subsidiary of the Company) on
terms that are fair and reasonable and no less favorable to the Company or such
Subsidiary than it would obtain in a comparable arm’s-length transaction with a
Person not an Affiliate; provided that the foregoing restrictions shall
not apply to (a) the payment of customary annual fees to any Equity
Investor and/or its Affiliates for management, consulting and financial
services rendered to the Company and its Subsidiaries; (b) customary
investment banking fees paid to any Equity Investor and/or its Affiliates for
services rendered to the Company and its Subsidiaries in connection with the
divestitures, acquisitions, financings and other transactions; (c) customary
fees paid to members of the board of directors of the Company and its
Subsidiaries and (d) dividends and restricted payments not prohibited by
this Agreement.

 

5.12.  Covenant
to Guaranty Obligations.  Upon the formation or
acquisition of any new wholly owned, first-tier or second-tier Subsidiaries
(other than any Excluded Subsidiary or Permitted Receivables Subsidiary) by the
Company, then in each case the Company shall (at the Company’s expense), within
30 days after such formation or acquisition (or, if an Event of Default shall
have occurred and be continuing, as promptly as practicable after such
formation or acquisition), cause each such Subsidiary to duly execute and
deliver to the Agent a guaranty or guaranty supplement, in form and substance
reasonably satisfactory to the Agent, guaranteeing the Company’s obligations
under the Loan Documents.

 

29

SECTION 6.  NEGATIVE
COVENANTS

 

The Company hereby agrees
that, so long as the Commitments remain in effect or any amount is owing to any
Lender or the Agent hereunder, the Company shall not, directly or indirectly:

 

6.1.  Leverage
Ratio.  Permit the ratio of Total Consolidated
Indebtedness at the last day of any fiscal quarter of the Company to Total
Capitalization at such date to be greater than 0.87 to 1.0, in each case without giving effect to ARB51, FIN
46(R) or FAS 66 in each case in relation to the Company’s affordable tax credit
syndication business.

 

6.2.  Merger,
Consolidation, etc.  Merge or consolidate with any
other Person or sell or convey all or substantially all of its assets to any
Person unless, in the case of mergers and consolidations, (a) the Company
shall be the continuing corporation and (b) immediately before and
immediately after giving effect to such merger or consolidation, no Default or
Event of Default shall have occurred and be continuing; provided, however,
that nothing contained in this Agreement shall be deemed to prevent or prohibit
the conversion of the Company into a Delaware or Nevada limited liability
company, by means of merger or otherwise, so long as (a) no Default or
Event of Default shall have occurred and be continuing and (b) the
surviving limited liability company shall expressly assume the obligations of
the Company under this Agreement and the other Loan Documents to which it is a
party and agree to be bound by all other provisions applicable to the Company
under this Agreement and such other Loan Documents.

 

6.3.  Limitation
on Liens.  Pledge or otherwise subject to any Lien any
of its property or assets, or permit any Designated Borrower or Guarantor to
pledge or otherwise subject to any Lien any of its property or assets, unless
all principal, interest, fees and other obligations owing under or in connection
with this Agreement are secured by such pledge or Lien equally and ratably with
any and all other obligations and indebtedness secured thereby so long as any
such other obligations and indebtedness shall be so secured; provided, however,
that this covenant shall not apply in the case of:

 

(a)  Liens in favor of the Company, any Designated Borrower
or Guarantor;

 

(b)  any deposit of assets of the Company, any Designated
Borrower or Guarantor with any surety company or clerk of any court, or escrow,
as collateral in connection with, or in lieu of, any bond on appeal by the
Company, such Designated Borrower or Guarantor from any judgment or decree
against it, or in connection with other proceedings in actions at law or in
equity by or against the Company, such Designated Borrower or Guarantor;

 

(c)  any Lien or charge on any property, tangible or
intangible, real or personal, existing at the time of acquisition of such
property (including acquisition through merger or consolidation) or given to
secure the payment of all or any part of the purchase price thereof or to
secure any indebtedness incurred prior to, at the time of, or within 60 days
after, the acquisition thereof for the purpose of financing all or any part of
the purchase price thereof;

 

(d)  Liens on property or assets financed through tax exempt
municipal obligations in connection with municipal mortgage trusts;

 

(e)  any extension, renewal or replacement (or successive
extensions, renewals or replacements), in whole or in part, of any Lien, charge
or pledge referred to in clauses (a) to (e) of
this subsection 6.3; provided that the amount of any and all
obligations and indebtedness secured thereby shall not exceed the amount
thereof so secured immediately prior to the time of such extension, renewal or
replacement;

 

30

(f)  Liens evidencing the sale, securitization, syndication
or financing of (i) any real estate receivables and mortgage notes and
related security in connection with Permitted Receivables Financings, in each
case so long as such Liens extend solely to the assets being sold, securitized or
syndicated thereunder or (ii) any assets that (A) fall within any
Specified Asset Category or (B) are owned by any Specified Subsidiary; and

 

(g)  Liens securing Indebtedness of the Company, any Designated
Borrower and the Guarantors in an aggregate amount not to exceed 20% of the
difference of consolidated shareholders’ equity of the Company and its
Subsidiaries minus Attributed Equity.

 

To
the extent that the creation, incurrence or assumption of any Lien could be
attributable to more than one of the foregoing exceptions, the Company may
allocate such Lien to any one or more of such subsections.

 

6.4.  Indebtedness. 
Permit any of its Subsidiaries (other than any Specified Subsidiary and
any Designated Borrower) that are not Guarantors to create, incur, assume or
suffer to exist, any Indebtedness, except:

 

(a)  Indebtedness secured
by Liens permitted by subsections 6.3(c), 6.3(d) and 6.3(e),

 

(b)  capitalized
leases,

 

(c)  the Surviving
Indebtedness, and any Indebtedness extending the maturity of, or refunding,
replacing or refinancing, in whole or in part, any Surviving Indebtedness; provided
that the terms of any such extending, refunding or refinancing Indebtedness,
and of any agreement entered into and of any instrument issued in connection
therewith, are otherwise permitted by the Loan Documents; provided  further
that the principal amount of such Surviving Indebtedness shall not be increased
above the principal amount thereof outstanding immediately prior to such
extension, refunding or refinancing, and the direct and contingent obligors
therefor shall not be changed, as a result of or in connection with such
extension, refunding or refinancing,

 

(d)  Indebtedness
in respect of Hedge Agreements designed to hedge against fluctuations in
interest rates or foreign exchange rates incurred in the ordinary course of
business and consistent with prudent business practice,

 

(e)  Indebtedness
owed to the Company or a wholly-owned Subsidiary of the Company, which
Indebtedness, if secured, shall be otherwise permitted under the provisions of
subsection 6.3,

 

(f)  Indebtedness
of any Person that becomes a Subsidiary of the Company after the Closing Date,
which Indebtedness is existing at the time such Person becomes a Subsidiary of
the Company (other than Indebtedness incurred solely in contemplation of such
Person becoming a Subsidiary of the Company),

 

(g)  (i) 
Indebtedness in an amount not to exceed the amount of Attributed Indebtedness
deducted in determining Total Consolidated Indebtedness to the extent of any
corresponding deduction of Attributed Capitalization from Total Capitalization,
in each case for purposes of determining compliance with subsection 6.1
and (ii) any other Indebtedness secured by Liens permitted by subsection 6.3(f),
and

 

(h)    other Indebtedness in an aggregate amount
not to exceed an amount equal to 30% of the of the difference of consolidated
shareholders’ equity of the Company and its Subsidiaries minus Attributed
Equity.

 

31

To
the extent that the creation, incurrence or assumption of any Indebtedness
could be attributable to more than one of the foregoing exceptions, the Company
may allocate such Indebtedness to any one or more of such subsections and in no
event shall the same portion of such Indebtedness be deemed to utilize or be
attributable to more than one such subsection.

 

SECTION 7.  EVENTS
OF DEFAULT

 

7.1.  Events
of Default.  If any of the following
events shall occur and be continuing:

 

(a)  The Company shall (i) fail to pay any principal of
any Loan made to it when due in accordance with the terms hereof or (ii) fail
to pay any interest on any Loan made to it or any other amount which is payable
hereunder and (in the case of this clause (ii) only) such failure shall
continue unremedied for more than five Business Days after written notice
thereof has been given to the Company by the Agent or the Majority Lenders; or

 

(b)  Any representation or warranty made or deemed made by
the Company in Section 3 or any certified statement furnished pursuant to
subsection 5.2(b) shall prove to have been materially incorrect on or
as of the date made or deemed made or certified; or

 

(c)  The Company shall default in the observance of the
agreement contained in subsection 6.1; or

 

(d)  The Company shall default in the observance or
performance of any other agreement applicable to it contained in this Agreement
(other than as provided in paragraphs (a), (b) and (c) of this Section 7),
and such default shall continue unremedied for a period of 30 days after
written notice thereof shall have been given to the Company by the Agent or the
Majority Lenders; or

 

(e)  The Company or any of its Subsidiaries (other than any
Bankruptcy Remote Special Purpose Entity) shall default in any payment of
$50,000,000 or more (in the case of any single payment) or $100,000,000 or more
(in the case of all such defaulted payments in the aggregate) of principal of
or interest on any Indebtedness or in the payment of $50,000,000 or more (in
the case of any single payment) or $100,000,000 or more (in the case of all
such defaulted payments in the aggregate) on account of any Guarantee in
respect of Indebtedness, and such default shall be continuing beyond the period
of grace, if any, provided in the instrument or agreement under which such
Indebtedness or Guarantee was created; or

 

(f)  (i)  The Company, any Designated Borrower or
any Guarantor shall commence any case, proceeding or other action (A) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or the Company, any Designated Borrower or any
Guarantor shall make a general assignment for the benefit of its creditors; or (ii) there
shall be commenced against the Company, any Designated Borrower or any
Guarantor any case, proceeding or other action of a nature referred to in
clause (i) above which (A) results in the entry of an order for
relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 90 days; or (iii) there shall be
commenced against the Company, any Designated Borrower or any Guarantor any
case, proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of
its assets which results

 

32

 

in the entry of an order for
any such relief which shall not have been vacated, discharged, or stayed or
bonded pending appeal within 90 days from the entry thereof; or

 

(g)  One
or more judgments or decrees shall (i) be entered against the Company or any of
its Subsidiaries (other than any Bankruptcy Remote Special Purpose Entity),
(ii) not have been vacated, discharged, satisfied, stayed or bonded pending
appeal within 60 days from the entry thereof and (iii) involve a liability (not
paid or fully covered by insurance) of either (A) $50,000,000 or more, in
the case of any single judgment or decree or (B) $100,000,000 or more in the
aggregate, in the case of all such judgments and decrees;

 

(h)  a
Change of Control shall occur; or

 

(i)  the
occurrence of any ERISA Event, the partial or complete withdrawal of the
Company or any of its ERISA Affiliates from a Multiemployer Plan and/or the
reorganization or termination of a Multiemployer Plan which could, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect;

 

then, and in any such event,
(A) if such event is an Event of Default specified in clause (i) or (ii) of
paragraph (f) above with respect to the Company, automatically the Commitments
shall immediately terminate and the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement shall immediately
become due and payable, and (B) if such event is any other Event of Default,
either or both of the following actions may be taken:  (i) with the consent of the Majority Lenders,
the Agent may, or upon the request of the Majority Lenders, the Agent shall, by
notice to the Company declare the Commitments to be terminated forthwith,
whereupon the Commitments shall immediately terminate; and (ii) with the
consent of the Majority Lenders, the Agent may, or upon the request of the
Majority Lenders, the Agent shall, by notice to the Company, declare the Loans
hereunder (with accrued interest thereon) and all other amounts owing under
this Agreement to be due and payable forthwith, whereupon the same shall
immediately become due and payable. Except as expressly provided above in this
Section 7, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

 

SECTION 8.  THE AGENT

 

8.1.  Appointment. Each Lender hereby irrevocably designates
and appoints CNAI as the Agent of such Lender under this Agreement and the
other Loan Documents, and each such Lender irrevocably authorizes CNAI, as the
Agent for such Lender, to take such action on its behalf under the provisions
of this Agreement and the other Loan Documents and to exercise such powers and
perform such duties as are expressly delegated to the Agent by the terms of
this Agreement and the other Loan Documents, together with such other powers as
are reasonably incidental thereto. Notwithstanding any provision to the
contrary elsewhere in this Agreement, (a) the Agent shall not have any duties
or responsibilities, except those expressly set forth herein and in the other
Loan Documents, (b) the Syndication Agent, the Documentation Agents and the
Arrangers shall not have any duties or responsibilities in their capacities as
such to the Lenders and (c) none of the Agent, the Syndication Agent, any
Documentation Agent or any Arranger shall have any fiduciary relationship with
any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against the Agent, the Syndication Agent, any
Documentation Agent or any Arranger.

 

8.2.  Delegation
of Duties. The Agent
may execute any of its duties under this Agreement and the other Loan Documents
by or through agents or attorneys-in-fact and shall be entitled 

 

33

 

to
advice of counsel concerning all matters pertaining to such duties. The Agent
shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

 

8.3.  Exculpatory
Provisions. Neither the Agent nor any of its officers,
directors, employees or Affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement (except for its or such Person’s own gross
negligence or willful misconduct) or (ii) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made
by the Company or any officer thereof contained in this Agreement or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Agent under or in connection with, this Agreement or for
the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Loan Document or for any failure of the Company
to perform its obligations hereunder or thereunder. The Agent shall not be
under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of the Company.

 

8.4.  Reliance
by Agent. The Agent
shall be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed
by it in good faith to be genuine and correct and to have been signed, sent or
made by the proper Person or Persons and upon advice and statements of legal
counsel (including, without limitation, counsel to the Company), independent
accountants and other experts selected by the Agent. The Agent may deem and
treat the Lender specified in the Register with respect to any amount owing
hereunder as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the
Agent. The Agent shall be fully justified in failing or refusing to take any
action under this Agreement unless it shall first receive such advice or
concurrence of the Majority Lenders as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action. The Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement in accordance with a
request of the Majority Lenders (or, to the extent that this Agreement
expressly requires a higher percentage of Lenders, such higher percentage), and
such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the obligations owing by
the Company hereunder.

 

8.5.  Notice of Default. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless the Agent has received written notice from a Lender or the
Company referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”. In the event
that the Agent receives such a notice, the Agent shall promptly notify the
Company (unless the Company shall have delivered such notice to the Agent) and
then give notice thereof to the Lenders (provided that the failure to
notify the Company shall not impair any of the rights of the Agent and the
Lenders with respect to the events and circumstances specified in such notice).
The Agent shall take such action with respect to such Default or Event of
Default as shall be reasonably directed by the Majority Lenders; provided
that unless and until the Agent shall have received such directions, the Agent
may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Default or Event of Default as it shall deem
advisable in the best interests of the Lenders.

 

8.6.  Non-Reliance on Agent
and Other Lenders. Each Lender
expressly acknowledges that neither the Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Agent hereinafter
taken, including any review of the affairs of the Company, shall be deemed to
constitute any representation or warranty by 

 

34

 

the
Agent to any Lender. Each Lender represents to the Agent that it has,
independently and without reliance upon the Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Company and made its
own decision to make its Loans hereunder and enter into this Agreement. Each
Lender also represents that it will, independently and without reliance upon
the Agent or any other Lender, and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this
Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, operations, property, financial and other condition
and creditworthiness of the Company. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Agent
hereunder, the Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Company which may come into the possession of the Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

 

8.7.  Indemnification. The Lenders agree to indemnify the Agent
and each Sub-Agent,  (in their respective
capacities as such, but only to the extent not reimbursed by the Company and
without limiting the obligation of the Company to do so), ratably according to
their respective Commitments (or if the Commitments have been terminated, the
outstanding principal amount of their Loans) in effect on the date on which
indemnification is sought under this subsection 8.7 (or, if indemnification is
sought after the date upon which the Loans shall have been paid in full,
ratably in accordance with the outstanding principal amount of their Loans
immediately prior to such date of payment in full) but giving effect to any
subsequent assignments in accordance with subsection 9.6, from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever which
may at any time (including, without limitation, at any time following the
payment of the amounts owing hereunder) be imposed on, incurred by or asserted
against the Agent or such Sub-Agent (as the case may be) in any way relating to
or arising out of this Agreement or any documents contemplated by or referred
to herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by the Agent or such Sub-Agent under or in connection
with any of the foregoing; provided that no Lender shall be liable for
the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the gross negligence or willful misconduct of the Agent or the
relevant Sub-Agent (as the case may be). The agreements in this subsection 8.7
shall survive the payment of the Loans and all other amounts payable hereunder.

 

8.8.  Agent
in Its Individual
Capacity. The Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with the Company as though the Agent were not the Agent
hereunder. With respect to its Loans made or renewed by it, the Agent shall
have the same rights and powers under this Agreement as any Lender and may
exercise the same as though it were not the Agent, and the terms “Lender” and
“Lenders” shall include the Agent in its individual capacity.

 

8.9.  Successor
Agent. The Agent may resign as Agent upon 30 days’
notice to the Lenders and the Company and following the appointment of a
successor Agent in accordance with the provisions of this subsection 8.9. If
the Agent shall resign as Agent under this Agreement, then the Majority Lenders
shall appoint from among the Lenders willing to serve as Agent a successor
agent for the Lenders, which successor agent shall be approved by the Company
(which approval shall not be unreasonably withheld and shall not be required if
an Event of Default under subsection 7.1(a) or (f) has occurred and is
continuing), whereupon such successor agent shall succeed to the rights, powers
and duties of the Agent, and the term “Agent” shall mean such successor agent
effective upon such appointment and approval, and the former Agent’s rights,
powers and duties as Agent shall be terminated, without any other or further
act or deed on the part of such former Agent or any of the parties to this 

 

35

 

Agreement
or any holders of the obligations owing hereunder. After any retiring Agent’s
resignation as Agent, the provisions of this Section 8 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Agent
under this Agreement.

 

8.10.  Sub-Agent. Each Sub-Agent has been
designated under this Agreement to carry out the duties of the Agent. Each
Sub-Agent shall be subject to each of the obligations in this Agreement to be
performed by such Sub-Agent, and each of the Company and the Lenders agrees
that each Sub-Agent shall be entitled to exercise each of the rights and shall
be entitled to each of the benefits of the Agent under this Agreement as they
related to the performance of its obligations hereunder.

 

SECTION 9.  MISCELLANEOUS

 

9.1.  Amendments
and Waivers. Neither
this Agreement, nor any terms hereof may be amended, supplemented or modified
except in accordance with the provisions of this subsection 9.1. The Majority
Lenders may, or, with the written consent of the Majority Lenders, the Agent
may, from time to time, (a) enter into with the Company written amendments,
supplements or modifications hereto for the purpose of adding any provisions to
this Agreement or the Guaranty or changing in any manner the rights of the
Lenders or of the Company hereunder or thereunder or (b) waive, on such
terms and conditions as the Majority Lenders or the Agent, as the case may be,
may specify in such instrument, any of the requirements of this Agreement or
any Default or Event of Default and its consequences; provided, however,
that (x) no such waiver and no such amendment, supplement or modification
shall, unless in writing and signed by all of the Lenders (other than any
Lender that is, at such time, a defaulting Lender):

 

(i)  amend,
modify or waive the voting requirements of this subsection 9.1 or reduce the
percentage specified in the definition of Majority Lenders, or consent to the
assignment or transfer by the Company of any of its rights and obligations
under this Agreement, or

 

(ii)  
release one or more Guarantors (or otherwise limit the liability of one or more
Guarantors with respect to the obligations owing to the Agent and the Lenders
under the Guaranty) if such release or limitation is in respect of
substantially all of the value provided by all Guarantors under the Guaranty,
or

 

(iii)  permit
the sale of all or substantially all of the assets of the Company and its
Subsidiaries, taken as a whole, outside of the ordinary course of its business;

 

and
(y) no such waiver and no such amendment, supplement or modification shall,
unless in writing and signed by the Lender or Lenders specified below for such
waiver, amendment, supplement or modification:

 

(i)  reduce
the principal amount of any Loan, or reduce the stated rate of any interest or
fee payable hereunder, or extend the scheduled date of any payment thereof, or
increase the amount or extend the expiration date of any Lender’s Commitment,
in each case without the consent of each Lender directly affected thereby, or

 

(ii)  amend,
modify or waive any provision of Section 9 or any other provision of this
Agreement governing the rights or obligations of the Agent without the written
consent of the then Agent.

 

Any
such waiver and any such amendment, supplement or modification shall apply
equally to each of the Lenders and shall be binding upon the Company, the
Lenders, the Agent and all future holders of the 

 

36

 

obligations
owing hereunder. In the case of any waiver, the Company, the Lenders and the
Agent shall be restored to their former position and rights hereunder, and any
Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.

 

9.2.  Notices.  (a)  All
notices, requests and demands to or upon the respective parties hereto to be
effective shall be in writing (including by telecopy), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when
delivered by hand, or four days after being deposited in the mail, postage
prepaid, or, in the case of telecopy notice, when received, addressed as
follows in the case of the Company and the Agent, or to such other address as
may be hereafter notified by the respective parties hereto and any future holders
of the obligations owing hereunder:

 

	
   

  	
  The Company:

  	
   

  	
  Capmark Financial Group Inc.

  200 Witmer Road

  Horsham, PA 19044

  
	
   

  	
   

  	
   

  	
  Attention: 

  	
  Marc Fox

  
	
   

  	
   

  	
   

  	
   

  	
  Wayne Hoch

  
	
   

  	
   

  	
   

  	
  Telecopy: 215-328-1515

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  With a copy to:

  

  Capmark Financial Group Inc.

  200 Witmer Road

  Horsham, PA 19044

  
	
   

  	
   

  	
   

  	
  Attention: 

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
  Telecopy: 

  	
  215-328-3620

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Agent:

  	
   

  	
  Citicorp North America, Inc.

  2 Penns Way, Suite 200

  New Castle, DE  19720

  
	
   

  	
   

  	
   

  	
  Attention: 

  	
  Dawayne Sims

  
	
   

  	
   

  	
   

  	
  Telecopy: 

  	
  212-994-0961

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  With a copy to:

  

  Citicorp North America, Inc.
 388 Greenwich Street
 New York, NY 10013

  
	
   

  	
   

  	
   

  	
  Attention: 

  	
  Yoko Otani

  
	
   

  	
   

  	
   

  	
  Telecopy: 

  	
  646-291-1727

  

 

provided that any notice, request or demand to or
upon the Agent or the Lenders pursuant to subsections 2.2, 2.3 or 2.4 shall not
be effective until received.

 

(b)  So long as
CNAI or any of its Affiliates is the Agent, materials required to be delivered
pursuant to subsections 5.1, 5.2 and 5.3 may be delivered to the Agent in an
electronic medium in a format acceptable to the Agent and the Lenders by e-mail
at oploanswebadmin@citigroup.com (and delivery in such format shall fully
satisfy the delivery requirements of such subsections in respect thereof). The
Company agrees that the Agent may make such materials, as well as any other
written information, documents, instruments and other material relating to the
Company, any of its Subsidiaries 

 

37

 

or any other materials or matters relating to this Agreement, the
Notes, the Guaranty or any of the transactions contemplated hereby
(collectively, the “Communications”) available to the Lenders by posting
such notices on Intralinks or a substantially similar electronic system (the “Platform”).
The Company acknowledges that (i) the distribution of material through an
electronic medium is not necessarily secure and that there are confidentiality
and other risks associated with such distribution, (ii) the Platform is
provided “as is” and “as available” and (iii) neither the Agent nor any of its
Affiliates warrants the accuracy, adequacy or completeness of the
Communications or the Platform and each expressly disclaims liability for
errors or omissions in the Communications or the Platform. No warranty of any
kind, express, implied or statutory, including, without limitation, 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
the Agent or any of its Affiliates in connection with the Platform.

 

(c)  Each Lender agrees that notice to it (as provided
in the next sentence) (a “Notice”) specifying that any Communications
have been posted to the Platform shall constitute effective delivery of such
information, documents or other materials to such Lender for purposes of this
Agreement; provided that if requested by any Lender the Agent shall
deliver a copy of the Communications to such Lender by email or telecopier. Each
Lender agrees (i) to notify the Agent in writing of such Lender’s e-mail address
to which a Notice may be sent by electronic transmission (including by
electronic communication) on or before the date such Lender becomes a party to
this Agreement (and from time to time thereafter to ensure that the Agent has
on record an effective e-mail address for such Lender) and (ii) that any
Notice may be sent to such e-mail address.

 

9.3.  No
Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the
Agent or any Lender, 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.

 

9.4.  Survival
of Representations and Warranties. All representations and warranties made hereunder and in any
document, certificate or statement delivered pursuant hereto or in connection
herewith shall survive the execution and delivery of this Agreement and the
making of the Loans hereunder.

 

9.5.  Payment
of Expenses and Taxes.
The Company agrees (a) to pay or reimburse the Agent for all its reasonable out-of-pocket
costs and expenses reasonably incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to,
this Agreement or any other Loan Document and any other documents prepared in
connection herewith or therewith, and the consummation and administration of
the transactions contemplated hereby and thereby, including, without
limitation, the reasonable fees and disbursements of counsel to the Agent, (b)
to pay or reimburse each Lender and the Agent for all its reasonable costs and
expenses reasonably incurred in connection with the enforcement of any rights
under this Agreement, including, without limitation, the reasonable fees and
disbursements of counsel to the Agent and to the several Lenders (other than
those incurred in connection with the compliance by the Lender with the
provisions of subsection 2.17(a)), and (c) to pay, indemnify, and hold each
Lender and the Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay by the
Company in paying, stamp, excise and other taxes, if any, which may be payable
or determined to be payable in connection with the execution and delivery of,
or consummation or administration of any of the transactions contemplated by,
or any amendment, supplement or modification of, or any waiver or consent under
or in respect of, this Agreement or any other Loan Document, and (d) to pay, indemnify,
and hold each Lender, each Arranger, the Syndication Agent, each Documentation
Agent the Agent and each Sub-Agent 

 

38

 

harmless
from and against any and all other liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, reasonable expenses or
disbursements of any kind or nature whatsoever with respect to the execution,
delivery, enforcement, performance and administration of this Agreement and the
other Loan Documents (all the foregoing in this clause (d), collectively, the
“indemnified liabilities”); provided that the Company shall have no
obligation hereunder to the Agent, the Syndication Agent, such Documentation
Agent, such Sub-Agent, such Arranger, or any Lender with respect to indemnified
liabilities arising from the gross negligence or willful misconduct of the
Agent, such Sub-Agent, the Syndication Agent, such Documentation Agent, such
Arranger, or any such Lender. The agreements in this subsection 9.5 shall survive
repayment of the Loans and all other amounts payable hereunder.

 

9.6.  Successors and Assigns;
Participations and Assignments.
 (a) 
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 (i) the Company may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by the Company
without such consent shall be null and void) and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance
with this subsection.

 

(b) (i)  Subject to the conditions set
forth in paragraph (b)(ii) below, any Lender may assign to one or more
assignees (each, an “Assignee”) all or a portion of its rights and
obligations under this Agreement with the prior written consent (such consent
not to be unreasonably withheld) of:

 

(A)  the Company, provided that no consent of the
Company  shall be required for an assignment to
a Lender, an affiliate of a Lender, an Approved Fund (as defined below) or, if
an Event of Default under subsection 7.1(a) or (f) has occurred and is
continuing, any other Person; and

 

(B)  the Agent, provided that no consent of the Agent
shall be required for an assignment to an Assignee that is an affiliate of such
assigning Lender.

 

(ii)  Assignments
shall be subject to the following additional conditions:

 

(A)  except in the case of an assignment to a Lender, an
affiliate of a Lender or an Approved Fund or an assignment of the entire
remaining amount of the assigning Lender’s Commitments or Loans, the amount of
the Commitments or 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 Agent) shall be an amount equal
to $5,000,000 or a multiple of $1,000,000 in excess thereof unless each of the
Company and the Agent otherwise consent, provided that (1) no such
consent of the Company shall be required if an Event of Default under
subsection 7.1(a) or (f) has occurred and is continuing and (2) such amounts
shall be aggregated in respect of each Lender and its affiliates or Approved
Funds, if any;

 

(B)  the parties to each assignment shall execute and deliver
to the Agent an Assignment and Assumption substantially in the form of Exhibit
A, together with a processing and recordation fee of $3,500;

 

(C)  the Assignee, if it shall not be a Lender, shall deliver
to the Agent an administrative questionnaire; and

 

(D)  in the case of an assignment to a CLO (as defined
below), the assigning Lender shall retain the sole right to approve any
amendment, modification or waiver of any provision of this 

 

39

 

Agreement,
provided that the Assignment and Assumption between such Lender and such
CLO may provide that such Lender will not, without the consent of such CLO,
agree to any amendment, modification or waiver that (1) requires the consent of
each Lender directly affected thereby pursuant to the proviso to the second
sentence of subsection 9.1 and (2) directly affects such CLO.

 

For the purposes of this subsection 9.6, the terms
“Approved Fund” and “CLO” have the following meanings:

 

“Approved Fund”:  (a) a CLO and (b) with respect to any Lender
that is a fund which invests in bank loans and similar extensions of credit,
any other fund that invests in bank loans and similar extensions of credit and
is managed by the same investment advisor as such Lender or by an affiliate of
such investment advisor.

 

“CLO”:  any entity (whether a corporation,
partnership, trust or otherwise) that is engaged in making, purchasing, holding
or otherwise investing in bank loans and similar extensions of credit in the
ordinary course of its business and is administered or managed by a Lender or
an affiliate of such Lender.

 

(iii)  Subject to
acceptance and recording thereof pursuant to paragraph (b)(iv) below, from
and after the effective date specified in each Assignment and Assumption, the
Assignee thereunder shall be a party hereto 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 subsections 2.14,
2.15, 2.16 and 9.6); provided that no Assignee shall then be entitled to
receive any greater amount pursuant to subsections 2.13, 2.14, 2.15 or
2.16  than the assigning Lender would
have been entitled to receive thereunder in respect of the rights and
obligations assigned by such assigning Lender to such Assignee had no such
assignment occurred.

 

(iv)  The Agent,
acting for this purpose as an agent of Company, shall maintain at one of its
offices 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 amount of the Loans owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”). The entries in the
Register shall be prima facie evidence of the existence and amounts of the
obligations of the Company therein recorded, and the Company, the Agent and the
Lenders may treat each Person whose name 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. The Register shall be available for
inspection by the Company and any Lender, at any reasonable time and from time
to time upon reasonable prior notice. The Agent shall provide a copy of the
Register to the Company on a monthly basis.

 

(v)  Upon its
receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an Assignee, the Assignee’s completed administrative questionnaire
(unless the Assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) of this subsection and any
written consent to such assignment required by paragraph (b) of this
subsection, the Agent shall accept such Assignment and Assumption and record
the information contained therein in the Register.

 

40

 

(c)  (i) Any Lender may, without the consent of the
Company or the Agent, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Commitments and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (C) the Company, the Agent any Sub-Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement and (D) such Lender shall have given prior written notice to the
Company of the identity of such Participant. Any agreement 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 may provide that such Lender will not, without the consent of
the Participant, agree to any amendment, modification or waiver that (1)
requires the consent of each Lender directly affected thereby pursuant to the
proviso to the second sentence of subsection 9.1 and (2) directly affects such
Participant. Subject to paragraph (c)(ii) of this subsection, the Company
agrees that each Participant shall be entitled to the benefits of subsections
2.13, 2.14, 2.15, 2.16 and 9.6 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to paragraph (b) of this
subsection.

 

(ii)  A Participant shall not be entitled to
receive any greater payment under subsection 2.13, 2.14, 2.15, 2.16 or 9.6 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 Company’s prior written consent. Any
Participant shall not be entitled to the benefits of subsection 2.15
except to the extent that it has complied with any applicable requirements of
such subsection.

 

(d)           Nothing herein shall prohibit any Lender from pledging or
assigning all or any portion of its Loans to any Federal Reserve Bank in
accordance with applicable law. In order to facilitate such pledge or
assignment, the Company hereby agrees that, upon request of any Lender at any
time and from time to time after the Company has made the Borrowing hereunder,
the Company shall provide to such Lender, at the Company’s own expense, a
promissory note, substantially in the form of Exhibit C, evidencing the Loans
owing by the Company to such Lender (a “Note”).

 

(e)           On or prior to the effective date of an assignment, the
assigning Lender shall surrender any outstanding Notes held by it all or a
portion of which are being assigned, and the Company shall, upon the request to
the Agent made at the time of such assignment by the assigning Lender or the
Assignee, as applicable, execute and deliver to the Agent (in exchange for the
outstanding Notes of the assigning Lender) a new Note to the order of such
Assignee in an amount equal to the amount of such Assignee’s Loan and, if applicable, a new Note to the order of the assigning Lender in
an amount equal to the Loan retained by such Lender. Any such new Notes shall be dated the
Closing Date and shall otherwise be in the form of the Note replaced thereby. Any
Notes surrendered by the assigning Lender shall be returned by the Agent to the
Company marked “cancelled.”

 

(f)            Notwithstanding the foregoing, any Conduit Lender may
assign any or all of the Loans it may have funded hereunder to its designating
Lender without the consent of the Company or the Agent and without regard to
the limitations set forth in subsection 9.6(b); provided, that no
Conduit Lender shall be entitled to receive any greater amount pursuant to
subsections 2.13, 2.14, 2.15, 2.16 or 9.6 than the designating Lender would
have been entitled to receive in respect of the extensions of credit made by
such Conduit Lender. In addition, any Conduit Lender may disclose, on a
confidential basis, the existence and terms of the Loans it has funded to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancements to such Conduit Lender; provided that
no such Person shall receive any confidential financial information with
respect to the Company unless such 

 

41

 

Person has complied with subsection 9.6(g) as if such Person were a
Transferee. Each of the Company, the Lenders and the Agent hereby confirms that
it will not institute against a Conduit Lender or join any other Person in
instituting against a Conduit Lender any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding under any state bankruptcy or
similar law, for one year and one day after the payment in full of the latest
maturing commercial paper note issued by such Conduit Lender; provided, however,
that each Lender designating any Conduit Lender hereby agrees to indemnify,
save and hold harmless each other party hereto for any loss, cost, damage or
expense (including legal expenses) arising out of its designation of a Conduit
Lender, including but without limitations to, inability to institute such a
proceeding against such Conduit Lender during such period of forbearance.

 

(g)           The Company authorizes each Lender to disclose to any
prospective Participant, any Participant, any prospective Assignee or any
Assignee (each, a “Transferee”) any and all financial information in
such Lender’s possession concerning the Company and its Affiliates which has
been delivered to such Lender by or on behalf of the Company pursuant to this
Agreement or which has been delivered to all Lenders by or on behalf of the
Company in connection with their respective credit evaluations of the Company
and its Affiliates prior to becoming a party to this Agreement; provided
that (i) such Transferee has executed and delivered to the Company a written
confidentiality agreement substantially in the form of that which has been
executed and delivered by each Lender prior to the date hereof and (ii) in the
case of any information other than that contained in the Confidential
Information Memorandum, dated November 2005, the Company has been informed
of the identity of such Transferee and has consented (such consent shall not be
unreasonably withheld) to the disclosure of such information thereto. Nothing
contained in this subsection 9.6(g) shall be deemed to prohibit the delivery to
any Transferee of any financial information which is otherwise publicly
available.

 

(h)           If at any time, any Lender becomes a
Non-Consenting Lender, then any Company may, at its sole cost and expense, on
five Business Days’ prior written notice to the Agent and such Lender, replace
such Lender by causing such Lender to (and such Lender shall be obligated to)
assign pursuant to this subsection 9.6 all of its rights and obligations under
this Agreement to one or more Eligible Assignees; provided that neither the
Agent nor any Lender shall have any obligation to the Company to find a
replacement Lender or other such Person; provided, further, that such Non-Consenting
Lender shall be entitled to receive the full outstanding principal amount of
Loans so assigned, together with accrued interest and fees payable in respect
of such Loans and all other amounts then owed and payable to it under the Loan
Documents as of the date of such assignment.

 

9.7.  Adjustments.
If any Lender (a “Benefitted Lender”) shall at any time receive any
payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in
subsection 7.1(f), or otherwise), such that it has received aggregate payments
or collateral on account of its Loans in a greater proportion than any such
payment to or collateral received by any other Lender, if any, in respect of
such other Lender’s Loans which are then due and payable, or interest thereon,
such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of each such other Lender’s Loans, or
shall provide such other Lenders with the benefits of any such collateral, or
the proceeds thereof, as shall be necessary to cause such Benefitted Lender to
share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

9.8.  Counterparts.  (a)  This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts (including by telecopy), and all of said 

 

42

 

counterparts
taken together shall be deemed to constitute one and the same instrument. A set
of the copies of this Agreement signed by all the parties shall be lodged with
the Company and the Agent.

 

(b)  By its
signature hereto, each Lender hereby agrees that this Agreement shall become
effective immediately upon the execution and delivery by the Company and the
Agent of this Agreement. In the event that this Agreement has not been duly
executed and delivered by each Person listed on the signature pages hereto
(other than the Company and the Agent, with respect to which the execution and
delivery of this Agreement shall be a condition precedent to its effectiveness)
on the date upon which this Agreement becomes effective in accordance with the
immediately preceding sentence, this Agreement shall nevertheless become
effective with respect to those Persons who have executed and delivered it on
or before such effective date and those Persons who have not executed and
delivered it (such Persons, the “Non-Executing Banks”) shall be deemed
not to be Lenders hereunder.

 

(c)  On the date
of effectiveness of this Agreement, the Company may (after consultation with
the Agent) designate one or more Lenders (the “Designated Lenders”) to
assume the Commitments which would have been held by the Non-Executing Banks
and, if the Designated Lenders agree to assume such Commitments, (i) Schedules
I shall be deemed to be amended to reflect such increase in the respective
Commitment of each Designated Lender and the omission of each Non-Executing
Bank as a Lender hereunder and (ii) the respective Commitment of each
Designated Lender shall be deemed to be such increased amount for all purposes
hereunder.

 

(d)  Notwithstanding
anything to the contrary contained herein, the Commitment of a Lender shall not
be increased (without the prior written consent of such Lender) as a result of
the failure of any other Person to execute and deliver this Agreement or
otherwise.

 

9.9.  Judgment.
 (a)    If for the purposes of obtaining judgment in
any court it is necessary to convert a sum due hereunder in Dollars into
another currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in accordance
with normal banking procedures the Agent could purchase Dollars with such other
currency at Citibank’s principal office in London at 11:00 A.M. (London time)
on the Business Day preceding that on which final judgment is given.

 

(b)  If for the
purposes of obtaining judgment in any court it is necessary to convert a sum
due hereunder in another currency into Dollars, the parties agree to the
fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the Agent
could purchase such other currency with Dollars at Citibank’s principal office
in London at 11:00 A.M. (London time) on the Business Day preceding that on
which final judgment is given.

 

(c)  The
obligation of the Company in respect of any sum due from it in any currency
(the “Primary Currency”) to any Lender, Sub-Agent or the Agent hereunder
shall, notwithstanding any judgment in any other currency, be discharged only
to the extent that on the Business Day following receipt by such Lender,
Sub-Agent or the Agent (as the case may be), of any sum adjudged to be so due
in such other currency, such Lender, Sub-Agent or the Agent (as the case may
be) may in accordance with normal banking procedures purchase the applicable
Primary Currency with such other currency; if the amount of the applicable
Primary Currency so purchased is less than such sum due to such Lender,
Sub-Agent or the Agent (as the case may be) in the 

 

43

 

applicable Primary Currency, the Company agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify such Lender,
Sub-Agent or the Agent (as the case may be) against such loss, and if the
amount of the applicable Primary Currency so purchased exceeds such sum due to
any Lender, Sub-Agent or the Agent (as the case may be) in the applicable
Primary Currency, such Lender, Sub-Agent or the Agent (as the case may be)
agrees to remit to the Company such excess.

 

9.10.  Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

9.11.  GOVERNING LAW. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK.

 

9.12.  USA
PATRIOT Act.
 Each Lender hereby notifies the Company that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)) (the “Patriot Act”), it is required to obtain, verify and
record information that identifies the Company, which information includes the
name and address of the Company and other information that will allow such
Lender to identify the Company in accordance with the Patriot Act.  The
Company shall promptly provide such information upon request by any Lender.

 

9.13.  WAIVER
OF JURY TRIAL. EACH OF THE COMPANY, THE AGENT AND THE LENDERS IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO
ANY OF THE LOAN DOCUMENTS, THE BORROWING OR THE ACTIONS OF ANY AGENT OR ANY
LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

 

44

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

 

	
   

  	
   

  	
   

  	
  CAPMARK FINANCIAL GROUP
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Mindy Riddle

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Mindy Riddle

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Taxpayer ID: 
  91-1902188

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CITICORP NORTH AMERICA, INC.,

  
	
   

  	
   

  	
   

  	
  as Administrative Agent
  and a Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Yoko Otani

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Yoko Otani

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  JP Morgan
  Chase Bank, N.A., as a Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Elisabeth H. Schwabe

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Elisabeth H. Schwabe

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Managing Director

           JPMORGAN CHASE BANK

  
							

 

 

 

	
   

  	
   

  	
   

  	
  CREDIT
  SUISSE SECURITIES (USA) LLC, as

  Documentation Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ James Finch

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  James Finch

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CREDIT
  SUISSE, Cayman Islands Branch, as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ David Dodd

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  David Dodd

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Michail Faybusovich

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Michail Faybusovich

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Associate

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
   

  	
   

  	
   

  	
  Deutsche
  Bank AG Cayman Islands Branch, as a

  Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Steven Lapham

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Steven Lapham

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Linda Wang

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Linda Wang

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
   

  	
   

  	
   

  	
  GOLDMAN
  SACHS CREDIT PARTNERS LP, as a Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ William W. Archer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  William W. Archer

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
   

  	
   

  	
   

  	
  The Royal
  Bank of Scotland plc, as a Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Maria Merrill

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Maria Merrill

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Managing DirectorExhibit 10.4

 

EXECUTION COPY

 

AMENDMENT NO. 1 TO THE BRIDGE
LOAN AGREEMENT

 

Dated as of December 7, 2006

 

AMENDMENT
NO. 1 TO THE BRIDGE LOAN AGREEMENT (this “Amendment”) among Capmark Financial Group Inc., a Nevada
corporation (the “Company”), the financial institutions and other
institutional lenders party hereto (the “Majority Lenders”), and Citicorp
North America, Inc., as administrative agent (the “Agent”) for the Lenders.

 

RECITALS:

 

(1)           The
Company, the financial institutions and other institutional lenders party
thereto (the “Lenders”), the Agent and the other agents party thereto
have entered into a bridge loan agreement dated as of March 23, 2006 (as
amended, supplemented or otherwise modified, the “Bridge Loan Agreement”).
Capitalized terms not otherwise defined in this Amendment have the same
meanings as specified in the Bridge Loan Agreement.

 

(2)           The
Company has requested that the Lenders agree to amend certain provisions of the
Bridge Loan Agreement as described herein for the purpose of amending the
manner in which Net Cash Proceeds resulting from issuances of Permanent
Securities are applied in connection with mandatory prepayments of the
Facility.

 

(3)           Pursuant
to subsection 9.1(a) of the Bridge Loan Agreement, the Majority Lenders may,
or, with the written consent of the Majority Lenders, the Agent may, from time
to time, enter into with the Company, written amendments, supplements or
modifications to the Bridge Loan Agreement for the purpose of adding any
provisions to the Bridge Loan Agreement or changing in any manner the rights of
the Lenders or of the Company under the Bridge Loan Agreement.

 

(4)           The
Agent, the Majority Lenders and the Company have each agreed, subject to the
terms and conditions stated below, to amend the Bridge Loan Agreement as
hereinafter set forth.

 

SECTION 1.           AMENDMENTS TO BRIDGE LOAN AGREEMENT

 

(a)           Subsection 2.4(b)(ii) of the Bridge
Loan Agreement is hereby deleted in its entirety and replaced with the
following:

 

“(ii)         The Company shall,
within five Business Days following the receipt by the Company or any of its
Subsidiaries of any Net Cash Proceeds from the issuance or incurrence of any
Permanent Securities, prepay the Loans in an amount equal to such Net Cash
Proceeds, such amount to be applied ratably to the outstanding principal amount
of the Loans then owing to the Lenders; provided that, notwithstanding
the foregoing, if the Company shall have prepaid the Loans by at least
$1,500,000,000 in the aggregate prior to the first issuance of Permanent
Securities after the Closing Date, then the Company shall, within five Business
Days following the receipt by the Company or any of its Subsidiaries of the Net
Cash Proceeds from the issuance or incurrence of any Permanent Securities (such
Net Cash Proceeds, “Securities Proceeds”), prepay the Loans as follows
(all such prepayments to be applied ratably to the outstanding principal amount
of the Loans then owing to the Lenders):

 

(A)          100% of Securities
Proceeds shall be applied to prepay the Loans, up to an aggregate amount of
$1,500,000,000 of prepayments from all Securities Proceeds pursuant to this
clause (A);

 

 

(B)           50% of Securities
Proceeds (if any) in excess of an aggregate of $1,500,000,000 (for all
Permanent Securities) shall be applied to prepay the Loans, up to an aggregate
amount of $750,000,000 of prepayments from all Securities Proceeds pursuant to
this clause (B); and

 

(C)           100% of Securities
Proceeds (if any) in excess of an aggregate of $3,000,000,000 (for all
Permanent Securities) shall be applied to prepay the Loans.”

 

SECTION 2.           CONDITIONS
OF EFFECTIVENESS

 

This Amendment shall become effective as of the date
first above written when, and only when, the following conditions have been
satisfied: 

 

(a)           the Agent shall have received
counterparts of this Amendment executed by the Majority Lenders, or, as to any
of the Lenders, advice satisfactory to the Agent that such Lender has executed
this Amendment;

 

(b)           each Guarantor has executed and
delivered a consent in the form of Annex I hereto; and

 

(c)           all fees and expenses of the Agent
and the Lenders (including all reasonable fees and expenses of counsel to the
Agent), to the extent invoiced prior to the date hereof, shall have been paid.

 

SECTION 3.           CONFIRMATION OF REPRESENTATIONS AND
WARRANTIES

 

(a)           The Company hereby represents and
warrants, on and as of the date hereof, that the representations and warranties
contained in the Bridge Loan Agreement (to the extent relating to the Company) are
true and correct in all material respects on and as of the date hereof, before
and after giving effect to this Amendment, as though made on and as of the date
hereof, other than any such representations or warranties that, by their terms,
refer to a specific date.

 

(b)           The Company hereby represents and
warrants that, on and as of the date hereof, no event has occurred and is
continuing that constitutes a Default.

 

SECTION 4.           AFFIRMATION OF THE COMPANY

 

The Company hereby consents to the
amendments to the Bridge Loan Agreement effected hereby, and hereby
confirms and agrees that, notwithstanding the effectiveness of this Amendment,
the obligations of the Company contained in the Bridge Loan Agreement, as
amended hereby, or in any other Loan Documents to which it is a party are, and
shall remain, in full force and effect and are hereby ratified and confirmed in
all respects.

 

SECTION 5.           REFERENCE TO AND EFFECT ON THE LOAN
DOCUMENTS

 

(a)           On and after the effectiveness of this Amendment, each
reference in the Bridge Loan Agreement to “this Agreement”, “hereunder”, “hereof”
or words of like import referring to the Bridge Loan Agreement and each
reference in the Notes and each of the other Loan Documents to “the Bridge Loan
Agreement”, “thereunder”, “thereof” or words of like import referring to the Bridge
Loan Agreement shall mean and be a reference to the Bridge Loan Agreement as
amended by this Amendment.

 

(b)           The Bridge Loan Agreement, the Notes
and each of the other Loan Documents, as specifically amended by this
Amendment, are and shall continue to be in full force and effect and are 

 

 

2

 

hereby in all respects ratified
and confirmed.

 

(c)           The execution, delivery and
effectiveness of this Amendment shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of any Lender or the Agent
under the Bridge Loan Agreement or any other Loan Document, nor constitute a
waiver of any provision of the Bridge Loan Agreement or any other Loan
Document.

 

SECTION 6.           COSTS, EXPENSES

 

The Company agrees to pay on
demand all costs and expenses of the Agent in connection with the preparation,
execution, delivery and administration, modification and amendment of this
Amendment and the other instruments and documents to be delivered hereunder
(including, without limitation, the reasonable fees and expenses of counsel for
the Agent) in accordance with the terms of subsection 9.5 of the Bridge
Loan Agreement.

 

SECTION 7.           EXECUTION IN COUNTERPARTS

 

This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

SECTION 8.           GOVERNING LAW

 

This Amendment shall be
governed by, construed and interpreted in accordance with, the laws of the
State of New York.

 

 

[The remainder of this
page intentionally left blank.]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be executed by their respective officers thereunto duly
authorized, as of the date first above written.

 

	
   

  	
  CAPMARK FINANCIAL GROUP
  INC., as 

  the Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James R. Baio

  	
   

  
	
   

  	
   

  	
  Name: James R. Baio

  
	
   

  	
   

  	
  Title: Executive Vice
  President and 

           Chief Financial Officer

  

 

 

 

	
   

  	
  CITICORP NORTH AMERICA,
  INC., as 

  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yoko Otani

  	
   

  
	
   

  	
   

  	
  Name: Yoko Otani

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 

 

 

	
   

  	
  Credit Suisse, Cayman
  Islands Branch

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Dodd

  	
   

  
	
   

  	
   

  	
  Name:  David Dodd

  
	
   

  	
   

  	
  Title: Vice President

  

 

	
   

  	
  By:

  	
  /s/ Shaheen Malik

  	
   

  
	
   

  	
   

  	
  Name: Shaheen Malik

  
	
   

  	
   

  	
  Title: Associate

  

 

 

4

 

 

	
   

  	
  Deutsche Bank AG Cayman
  Islands Branch,

  as a Majority Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven P. Lapham

  	
   

  
	
   

  	
   

  	
  Name: Steven P. Lapham

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joanna Soliman

  	
   

  
	
   

  	
   

  	
  Name: Joanna Soliman

  
	
   

  	
   

  	
  Title: Assistant Vice
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]